it is 5:00 on the east coast. summer spiking but does big tech have what it takes or is your money spent better elsewhere protests in hong kong. how will beijing and the white house respond a live report next history in the making in florida. we ready our first manned mission to the international space station after nine years in florida, theme parks getting ready to welcome back visitors presenting reopening

plans to their state as soon as today. preparing for one possible second wave. what one ceo says he's getting ready and doing. you are watching on this wednesday, may 27, 2020 on cnbc. good morning welcome from wherever in the world you may be watching. i'm brian sullivan thank you for starting or ending your day with us on cnbc it is turning out to be quite the holiday shortened trading week futures are up again right now session highs. nasdaq also up about a percentage level about the same. dow futures have been gaining ground since opening up in the red following yesterday's big stocks move higher squarely focused on two things number one, the hope around the

vaccine and the optimism around the rebound as more move forward with their opening plans d.c. targeting next week, parts of long island opening today. sooner than many had expected given earlier concerns the case of new growth rates and hospitalizations have come way down even those who get sick tend to ride it out and recover. powering stocks today and yesterday. the dow and s&p are double digits away from the highs a long way to go from those indices. nasdaq up. that's something we'll be watching today more on big tech as noted should be the highlight to see if we

see any follow through today joined by joel, head of technology and media trading at wedbush securities good morning yesterday was kind of interesting. the dow soared while the normally red hot technology stocks lagged. what happened yesterday and is that a reason to be concerned? >> were coming into month end, so you expect a little funky price action we'll see that in the next two to three sessions as well. we are seeing increasing as highlighted earlier. locked down restrictions steadily across the nation we have seen anticipations on the vaccine front. overall, the underlying tone is possible you could argue never before have we seen this many money and focus being put towards one

goal i think tech coming in right now this morning, nasdaq up 8% for the year nasdaq composite is up 4%. the s&p down 7%, russell down 16.5%. only time to see a mean reversion. pre-market, you had airlines ripping out of the gates, cruise liners, movie theaters as well tleerly a rotation in the value that seems to be continuing this morning in european trading as well >> it does you look at tsa passenger data gaining here the cruise lines, some saying they are booked solid for the fall and winter. probably more on rebookings. on the vaccine, there seems to

be reopening optimism going on we had good data we are looking at chinese data from u.s. states and hospitals it feels like there is less fear around this than there was fair to say? >> 100%. over the next two to three weeks, we saw choppy trading weather ocean city, maryland and other places there is pent up demand to leave their home if three to four weeks on the they are pew tick side, that will be positive for investors for tech, if we do see increasing relaxations and opening trends to accelerate, you could see a pause in the growth trade on fire over the past six weeks given the year to date moves, that is understandable at this

point. >> the next two weeks will be critical we saw these images. we saw the images from the ozarks of people partying. if there is another spike and hospitalizations go back on the rise, what would we do the opposite would be we don't see the spike. it is known that younger folks don't get it or don't get it as severely as older folks. >> i think if we don't see a big spike in cases, an alarming spike, we'll call it, you'll see this rotation and value, this mid-cap trade probably has more legs to go over the next month or two at least. some of the big tech companies coming in here the last four to five weeks

clearly signs of stablization in april and may as well. the major amount of underperformance from this cap complex and value names. that is probably the trade that could continue to gain momentum in the near term if those numbers don't rise. if things hit the wall again and things don't drop back down, tech is at risk. and that rhetoric between the white house and china and now looking at two head winds. tech would undoubtedly suffer greatly. likely semiconductors within that trade >> can you give me that good name, that action this wednesday morning, joel? >> that goes without saying. most tech investors are of the cloud software space sales force and workday are all

reporting in the next 48 hours that will be a good indicator of the risk out there we know there has been a lot of projects green lighted as work loads continue to shift to the cloud and people are dealing with the ramped up capacity of the work from home state we are in cloud is in the forefront. when it comes to those stocks within a video game complex. here at wedbush, i still love zynga. siege the audience they've been attracting, they've been able to retain we are seeing elevated engagement levels. great management class and great games in the pipeline as well. zynga is my take for mobil game

action >> you and your team have a great day. be well and safe thank you. outside of the markets, a scene in hong kong's financial district police firing pepper pellets as people take to the streets again to express their anger over beijing's proposed security law which they feel tramples on their free speech rights president trump says the u.s. is working on a strong response to china's action there and is likely to be announced at the end of the week. let's get to more what is going on on the ground now reporting from the washington post tweeting live all morning long tell us exactly what is going on and how wide spread the protests appear to be >> this morning, there were calls for a protest over a

planned national anthem bill that is currently being read in hong kong's legislate your right now. one of many protesters feel is a sign that beijing is cracking down on them and wants to bring them in closer there is anger over the security law being planned and proposed be beijing rather than going through the hong kong legislate your this morning, it was very, very hard for protesters to mobilize in any way because police had locked down the area such a heavy police presence nothing like i've seen before even during the protests last year the protesters regrouped and went through hong kong they had a gathering at the

financial district but the police presence was so strong all day that it was really difficult for them to gain ground we saw mass arrests, police firing pepper sprays and balls into crowds simply shouting slogans. these were students, officer workers out an their lunch break, elderly people. these p weren't violent protesters that we saw at points last year. >> what does that tell but the state of the protest has it evolved >> yes i think it is difficult right now for hong kong protesters to get the numbers or traction. the police have had the past five months to mobilize or change their own strategy and fortify areas that were considered weak points from a security perspective it is getting much harder for them to resist

the stakes are getting much higher we've seen the hong kong police really not having tolerance for anything right now we have seen the protesters shouting and insulting them and moving to disperse crowds once they started blocking roads and throwing debris. you see them moving in at the point of gathering they are not even allowing them to blow off steam and march on and carry on with their day. i was there for the better part of a week last october covering this. i see what you are saying. they were allowed to gather. they had to have their approved areas but once things got rowdy, cops moved in. it sounds like they are cracking down much faster and harder than last october >> you are right you are seeing peaceful protests

closing up the coronavirus outbreak made protests hard anyway because people were worried about gathering and going out. we've had local cases in the past two weeks people are signed up to protest again and very mobilized the worry here is even without this national security law having passed, you are seeing beijing making rules on the right to protest freedom of assembly and cracking down on all of these avenues people are worried that this is happening so fast. they are seeing the rights and fr freedoms they've known disappear here >> what could also disappear is western capital going to sing

poo -- singapore or tokyo new comes at a u.s. ford factory over, yep, a possible virus outbreak universal and disney looking to welcome back you to their parks as they get set to present their reopening plans to the state history in the making for nasa and spacex. t minus 11 hours, 30 minutes we have about 45 minutes lef w future up more than 1,200. we are back after this (announcer) america's veterans have always stepped up.

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welcome back nasa and spacex are about to make history this afternoon. frank holland is back with a very cool space story. >> very cool indeed. these are live pictures of the launch pad at kennedy space center where two nasa astronauts will take a spacex launch. this will last the first u.s. soil launch in nine years. in florida, disney and sea world are set to present reopening plans to orange county task force the first step in the process of

reopening the doors. lat week, parent company comcast presented plans to reopen the universal theme park in orlando. in missouri, deep cleaning a work area because of an employee being diagnosed with covid-19. halting the production of the ford transit van for about an hour the f-150 full sized pick up was not impacted the pause was at least the fourth since it restarted production at the u.s. assembly plants back to you. >> thank you so much best to all those astronauts there in florida great to have an interesting space story this morning a cnbc exclusive with the ceo of polar is. do you think the economy is in bad shape. we'll get his take on the

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good morning we have a developing story on boei boeing the company will announce 2,500 job cuts last month, it said it would make a 10% cut in the work force marking the first major job cut for the company since 2017 also, we are learning more about merck's approach to the finding of a vaccine a response saying the company plans to be responsible but aggressive >> across the koirntd, no one company can solve this all the companies are bringing different approaches if you look at that together, i have a great deal of confidence

and optimism we will have an answer to this pandemic. >> announcing they'll work with a nonprofit research organization to develop a vaccine or vaccines. and potentially good news for all of you interested in sports. hockey may be coming back. nhl may have a plan to restart the season using an expanded 24-team playoff. the goal is to have the 12 best teams in each conference meet later this summer in two locations for several playoff rounds a little good news potentially it is the best performing retail stock since the lockdowns began. is it amazon, home depot,

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recovery of polaris as the ceo lays out surprising things about the state of the economy now this is wednesday, may 27, 2020. here on cnbc welcome back good wednesday morning thank you for joining us here. here is how your money and investments look just about half way through the 5:00 hour. we opened up trading last night in the red following big gains we had in the market since that little drop, we have seen futures simply continue to gain steam dow futures are up 400 points. it has been a remarkable turn following the valley we saw yesterday. all of this as investors continue to focus on the reopening of the american

economy as more regions get back to business perhaps sooner than many had expected. d.c. talking about partial reopening. parts of long island talking about reopening as soon as today in more rural areas as everybody is waiting to hear what is happening in new york city your stock of the day is one that we just teased. the best performing retail stock in the s&p 500 since the lockdowns began back in midmarch you are probably thinking, brian, it has to be amazon, walmart or home depot. it is not any of those it is tractor supply company as of yesterday's close, the stock up 46% since march 16. not only the best performing s&p retail stock, it is the 17th best s&p stock overall compare that to amazon, best

buy, lowes, nike, it's no contest. stock up another 7% after issuing new second quarter guidance yesterday saying that they continue to see record sales across all channels, categories and regions you go tractor supply. good news for their investors as well let's see if there is more good news around the world with a check on the markets julianna tatelbaum, who is from boston have you ever been to a tractor supply in the united states? do they have those in chelsea? >> i haven't i thought that was going to be home depot's price chart we have more good news here in europe shares continuing to climb around 2% of gains for the rest of the markets the cac 40 is leading this

morning. within that, renault shares trading after the carmaker announced a revamp of its alliance with nissan and mitsubishi we are looking at new eu budget and fiscal stimulus for the european economy a lot of focus on the european-wide fiscal response. we've heard from the central bank and now to the european commission let's look at the breakdowns green across the board technology and health care are trading in the red ooze autos up more than 6%. renault strong the sector responding to new stimulus from the french government president macron unveiling a stimulus package he wants france to be the leader in clean vehicles. following the strong gains for

u.s. banks yesterday which led the charge for wall street that's the picture for europe. brian, back to you >> thank you a lot of green on the screen there. when the lockdowns began, the wisdom was that the consumer would go into hiding, lockdown finances and stop spending the common wisdom has been uncommonly wrong joining us from his headquarters in medina, minnesota up nice and early. for an ex navy guy, nothing surprising you put out your press release saying you have unprecedented demand for many motorcycles and other products how much of a surprise has that been to you and your sales team? >> brian, thanks for having me

on we pride ourselves on discipline and we were way off on this one. the pandemic started, there was a lot of concern about liquidity and what we saw we were expecting retailers to be down 20 or 30% the southeast is incredibly good market now we are seeing pennsylvania really good growth it is a good family activity, great social distancing with a helmet we feel like we are well positioned now the economy is not as strong as

our retail sales would suggest i do think with negative gdp, way too many unemployed. we are cautious and trying to chase the outside with retail demand >> so it sounds like you are saying we are not out of the woods. is it possible that folks who maybe planned a summer vacation, they are not going to go anywhere and saved the money they would spend on air fare they are saying i've always wanted that atv, we'll be stuck at home and it is not really a reflection of the rise in economy? >> we've always looked at expanding the pie. getting a larger percentage. that's what is happening not rising in single family

growth i think it is that spending money they are not using towards traveling and cruising we are selling a lot of four-seat vehicles it's encouraging but we are bringing in a lot of new customers. we like that as we bring in new customers, it brings in their friends and expands the sport. >> your stock by the way is up 4% pre-market. to be clear, it sounds like you and your team are worried there could be a bigger slowdown in the second half of the year. many ceos have said, listen, right now you have a lot of stimulus and people saving money but if layoffs continue and we don't see another round of stimulus in the fall, things could get ugly >> we do tend to do better in the areas not impacted by

covid-19 that has been a benefit. we cannot defy gravity forever we do need to see the economy start to turn around in a more positive direction he said, he's got 1 foot fully on the gas and 1 foot on the break as we are being mindful that things could turn to the south. we have reduced inventory to levels i have not seen our dealer inventories are very healthy. we'll make sure polaris and our dealers will work out in this environment. >> why bring the dividend back >> we did not suspend our dividend we suspended our decision on our

dividend the enviernment was getting better but still unsure. we decided we would wait a month. our cfo has done a really nice job with his team building a cash war rhyme we met yesterday with our board. we showed them the outlook for the company for the second quarter and beyond 62 cents a share means a lot to share holders. we were very glad the board approved that. >> you decided to decide i stand corrected. if you had to do your crystal ball for 2021. it sounds ridiculous you have to look way out how do you see next year and concerns around a possible second wave. what if that happened in the united states, what would polaris do >> we handled the first wave

what we cannot stand is a stoppage of commerce when they shut down our dealers and consumers were not allowed to buy our products. that caused a lot of concern for us we worked through that we don't expect a stoppage of commerce again we are prepared for that i do not think we'll have a great 2021 we'll be prepared for it i think we'll be very fortunate to have positive gdp growth in 2021 >> all right a little somber outlook. no better time like right now to buy that indian motorcycle

best to you to your family and team thank you. >> thanks, brian >> that stock up 4% pre-market you know what else has been surprisingly resilient. real estate. we'll speak about the signals they are seeing across the country and the cboe, chicago board options exchange following the foot steps of the new york stock exchange announcing plans to partially reopen on june 8. plans and pros protocols including reconfiguring play out. cboe likely to reopen partially june 8 dow futures, they are open and up about 400 we are back right after this

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welcome back dow futures are up 380 points. a lot of optimism about a faster recovery that trickles through to real estate as well getting positive signs new data revealing that sales of single family homes rose last month. home prices also ticked up in march. for more on what is ahead.

particularly big in the new jersey, new york, pennsylvania region great to have you on unexpected to some i've been tweeting out and talking to some of your agent and friends from maryland to new york they've all said demand never went down as people look to leave the city what have you seen >> just that demand is exceptionally strong supply just remains very, very low. in the last couple of months with covid -- the demand is still very, very strong. probably more so now than ever before >> these buyers looking to get

out of cities? looking for short-term rentals inle they figure out what happens? who are the buyers >> i would say, look, we have a natural migration from the urban markets. the millennials, older millennials were moving into the suburbs anyway first this year was pre covid. people wanting to move out of the city, buying a single-family home, different school systems, et cetera. demand has spiked because you have this new thing where people want to be in bigger spaces, more square footage, want a yard it has spiked demand further

there is no surprise the home prices are climbing rapidly. >> do you think it is that short-term pop or fear you've got millions of people turning 30, 31, 32 where they are starting to think about families did this accelerate a trend that may have already been in place that accelerated what was going to happen anyway the trend of working from home is going to continue >> that is something we all learn to do. look at what we are doing today. i'm at home and i'm streaming live with you. a lot of that has been going on in the last couple of months meetings have been done virtually. home buyers are viewing homes

virtually. there is a lot that has changed. a lot is here to stay. the trend from working from home and moving out of city markets is going to continue homes is a popular market for sure >> another positive data point on the economy people checking upin the suburbs. a lot of green on the screen there today. but not all good news. you've got continued protests in hong kong. police now firing pepper pellets at protesters. a lot of protesters were even elderly people but police taking pepper pellet shots at them as well >> tech stocks have been on a

terror was yesterday quite a tell for many reasons in the stock market we'll talk about that. dow futures up nearly 400. a lot to do. grab a cup of coffee we are back after this

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welcome back and good morning. we to watch the unfolding in hong kong. police firing pepper pellets at demonstrators. all over the anger for the proposed security law which they view as trampling on free speech as trump administration prepares a possible response to beijing's actions. live in hong kong with more. i know it is night fall. creeping towards night fall

there. what are you seeing is happening on the ground? >> it certainly looks like the derailment process we saw with the extradition bill you and i talked about didn't really happen at the legislative council because police wrapped this up. having learned the less on from last year. we saw the revive al of lunch time protests that carried over to the hours over 300 people had been arrested when we are talking about the police breaking up these demonstrations here. social distancing rules are in place due to the coronavirus they are deemed as unauthorized assembly at this point so two pieces of legislation are in question at this point. one is national anthem bill. the idea of penalizing people in

hong kong if they misuse or disrespect china's national anthem the proposed penalty is around $6,500 u.s. dollars and three years imprisonment the separate bill is china pushing for something called national security law on hong kong really the way china brought it out unexpected by many people late last week the way that they are going to go about pushing for this legislation that is certainly frustrating, angering some anti-government protesters here in hong kong that is the greater threat perceived by these protesters in the territory. >> some of the most shocking scenes we had in october i posted it and i'll try to repost was people walking

through the streets playing the u.s. national anthem asking the u.s. for help and kind of ridiculing the chinese anthem. >> that's right. the chinese national anthem has been booed at at major events that would have a global audience we are talking football matches for example. beijing wants to inject a patriotic pride on people in mainland china and hong kong the system is this one country, two system that doesn't sit well

with the beijing people. >> some striking scenes again harkens back to the pre-covid area >> sector has had an incredibleabincredible run. the question many investors have is does the sector have more room to run. dom has the answer now from hq >> tech has outperformed the broader s&p since the lows on march 2. some of the companies that could power the next leg higher are driven around things like computer hardware, storage and chips as well.

the highest upside target confirmed to 60% over prices and storage prices could prize in chip makers higher than those respectively they've bid up their target pay com is 17% lower jack henry is 10% above analyst target as well as media target adobe. those are some to keep an eye on catalysts in the tech move for the future back to you. >> dom chu good to see you, buddy. and if that will continue, we are joined by founder and ceo of kkm financial

jeff yesterday was a weird day normally the nasdaq outperforms, it didn't. people wondering if this is a sign of return what do you think? >> we are calling it the catch up trade focused on industrial. look at xli. broader names in there 3 m, raytheon. international paper, a lot of names left in the ditch as the tech giants move higher. amazon up 30%. microsoft up nearly 16%. tech continues to move up but is encouraging to see the laggards catch up in this trade >> yes in dom's piece there, he talked about what may be the curve.

calling it the reopening rally i would call it more optimism of recovery rally because we are going to spend to get more and get back into the grove faster than people think. do you think analysts will have to catch up as well and start raising price targets they previously cut and maybe we'll get back to business faster than people thought right fully so as they priced in dooms day through the month of march we are 40% higher off the low. what are we seeing last monday when we saw hope for the vaccine. in the city of czehicago last

week look at what we are seeing in germany. there is a sense of excitement that is the rally. momentum here. the risk beg short and potentially underinvested. >> i love the use of hopium. it is that hope optimism ed the fed stimulus. i tweeted the next two weeks could be the most important for equity we've seen wisconsin and lake of the ozarks and people acting like they just don't care and maybe they don't care. we are going to see the growth or we are not. do you agree the next two weeks, the case data you will be very important?

my question was important. i can't believe it picked that time to freeze up. jeff, if you are out there, tweet us your answer are the next two weeks going to be important for the stock market we want to hear from you @sullycnbc we'll get the answer to that futures are up about 400 points right now following on the back of the rally yesterday a lot more to do all day long. we'll see you tomorrow morning on "worldwide exchange." andrew, becky and joe picking up coverage next.

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good morning stocks looking to extend yesterday's rally and how. some stay-at-home stocks and some of those picks fade president trump blasting twitter after the company fact checked two of his tweets about mail-in ballots. ready for blast off spacex nasa set to send austronauts to the u.s. space station it is wednesday, may 27, 2020. "squawk box" begins right now. good morning welcom