markets here we are seeing a day in which the old leadership has resumed leadership technology and health care the dow up half a percent. s&p, .8. >> not too shabby. >> and closing bell starts right now. thank you, kelly and melissa and welcome, everyone, to closing bell the rally continues on wall street building on this week's strong momentum already we're off the highs of the session but dow still up about 100 points s&p up 25. let's look at what's driving the action u.s. unemployment data still coming in ugly, but signals are out there that the economy may be bottoming from the coronavirus induced shock. a number of retailers hitting all time highs from lowe's to home depot to dollar general, but the rotation into value. we are seeing tech and health care lead the market today despite president trump's intent the regulate the internet giant.

zblnc we'll break down the rising tensioning between washington and beijing and what it means for investors with steven roach plus we'll speak with the ceo of restaurant brands about the fresh trend data they just releaseded as the economy slowly reopens. the dow's up 132 points or half of 1%. let's focus on the big stories mike is b tracking all of today's action julia is covering the tensions between president trump and twitter and phil has an update on the airline, but mike, let's kick things off with you and the broader market >> kind of a stemt pullback day. most stocks are actually flat or down we're seeing a spillback in the value trade so the cyclical stocks are down. certainly, you know still pretty benign action, but if you look at the targets for s&p 500, a lot of technical folks looking

at it, they're up in the area of just about 3100. if you want to look back to early march, there was this failed rally after the initial drops and late february highs. that's the area where they say that's a maybe logical next place this is going to grind higher r for perhaps the next challenge for this market because it actually is showing signs of fatigue did want to look at the russell 2000 small cap index, too, over two years and yesterday's closing might have significance. arguably after the steep rise in the small caps, maybe that's another spot where they may have to take a break. also some month end noise going around in the markets. look at the russell 3000 that's a comprehensive market. the agg. they seem pretty pronounced outperformanced stocks versus bonds. sometimes, that creates

rebalancing activity now now if that's going to happen, largely done and that's why there's been a good bid, but if you remember back to march, we made such a fuss about the likely rebalancing into stocks of course that didn't become the whole story but it could work as a slight head wind if there's any left to be mopped up by the end of the month, tomorrow zplchlt a stealth pullback perhaps, but much more constructive in the sense that we are building still on the big gains of first day of the week in a way that last week we didn't really do and intraday as well, some impressive sort of pick me ups off the bottom particularly the likes of facebook and the banks banks still down, but off their session lows >> sure. there's no doubt it's kind of a resourcefulness that's apparent in the market. it still feels as if there's a bid there because people have a sense they're underinvested. i'm conscious of the fact when we see these moves, it's a grab for performance from folks who have been behind and as a matter

of fact, sometimes when you go after the most beaten down stuff in the market that used to be a sign that a rally was getting into its latter phases i don't think it's critical, but there's a lot of opposing currents underneath the market even though the index level continues to act quite well. >> mike, thank you see you in just a bit. president trump taking steps to crack down on social media companies after twitter began applying warning labels to some of the president's tweets. julia has more on what it means for the social media names julia. >> well, sara, the president's order on preventing what he calls online sensorship will call on the ftc to create new rules to oversee when and how social media companies can remoouve content also making government agencies evaluate ad spending on social platforms. while this is likely to be challenged in the courts, if it

were enacted, it could mean surging costs as well as fewer ads from government agencies facebook shares are pretty much flat today as analysts say this executive order is likely to do long-term damage to that company. shares of twitter which is drawing more criticism from the president after fact checking those tweets are down about 2.5% sun trust says quote the fear is that facebook and twitter become political pin aratas in this election year. he has a buy rating on facebook and hold rating on twitter now snap shares are up about 7.5% and pinshares are up and therefore aren't subject to this increased potential oversight. back to you. >> thaungs very much for that. as more americans file for

jobless claim, the major airlines are outlining new guidelines as a response to the massive hit to their business. phil >> hey, wilf, take a look at the airline stocks today they're down between 2 and 6% and as you mentioned, it's the fact we're starting to hear from the airlines about potential job cuts we know they're coming in the fall once it hits october, when they are allowed to essentially eliminate a number of jobs they can't do it before then because of the government aid packages take a look at american and delta. the first indications of what's going to be offered in terms of the kind of cost cuts they planned here in the case of american, they're planning to cut 5,000 administrative jobs. that's the first wave of what will be likely several if they go through pilots and flight attendants delta is offering early buyout packages we don't know the total number of jobs that plan to be eliminated united extending ticket exchange waivers through june 30th and

take a look at boeing. raising to a buy rating. yesterday afternoon, the boeing said it will be resuming 737 max production and that's why the stock getting a little bit of a pop today. >> i guess the stocks today are falling in part because of a bit of rotation following a strong bounce they've had, but that aside, you can put the political argument aside of the fact that they've been able to receive a bailout and are going to be able to make cost cutting measures including layoffs, but those two things together if they can get through the period while demand is low, it's pretty positive for them that they can push through huge layoffs that otherwise would have been politically unpalatable even if you hadn't had a bailout and they're doing it even though they got one. >> everybody knew that though. this is not a surprise they were clear from the beginning that they were either going to get a bailout and

guarantee these jobs through september 30th or you would like likely have seen some of these characters go to bankruptcy and in terms of whether or not you can be optimistic about the airline sector, remember, it comes down to passenger levels and they're down 87, 88% right now. so they've got a long ways to go before they ooemeven get close break even >> part of what i was suggesting, you get a bailout and make layoffs, you're going to be in a profitable position in a couple of year's time i don't think of their international rivals, you'll get that same balance where you'll see a carrier get a bailout and be able to make layoffs. i think international ly, it's kind of either/or. >> a different political beast as you well know take a look at lufthansa and the package with the german government so it is a much different approach here relative to the international airlines >> we'll have to see either way, those stocks down today, of course having enjoyed

a nice bounce from the march lows, particularly over the last couple of weeks. after the break, facebook's first general council will join us to weigh in on the president's crackdown of social media companies. you're watch iing closing bell cnbc where will you go first? will it be familiar streets? or perhaps unknown roads? wherever you may go, lexus will welcome you back with exceptional offers. find a lexus for every road at lexus.com. no payments for up to 90 days on all 2020 lexus models. experience amazing at your lexus dealer.

president trump is expected to sign an executive order cracking down on social made platforms today, days after twitter began fact checking his tweets mark zuckerberg weighed in earlier on b cnbc about what he thinks the role of social media platforms should be. >> we're different companies, but i feel like we've been pretty clear on what i think the right approach is, which is that i don't think facebook or internet platforms in general should be ash tors of truth. >> nancy pelosi firing back today at both zuckerberg and president trump. >> they don't want to be regulated so they pander to the

white house. you see what facebook zuckerberg is say iing today about all of this just panders tax cuts no regulation. what the president is doing is silly. it's silly say this it's a distraction >> joining us now is facebook's former chief privacy officer and first general council, chris kelly, who's also a current advise tore facebook on issues like this. thanks so much for joining us, chris. >> really glad to be here. thanks >> i guess my starting question would be whether you agree with what mark zuckerberg said there, that twitter has gone as far as making itself an arbiter of truth. >> what he's wanted to focus on more is what b facebook has done in this area and the way that things work in content review. that there are issues of imminent harm, where even

political figures can have speech taken down. it should be, it is and should be an extraordinarily rare event and it has to be on an issue of imminent harm and facebook has approached it that way, which is quite different but this is a new movement for them and so we'll see how that develops over time >> chris, is it possible and fair in your eyes to continue in a way where you say we're not going to get involved in any way on political speech. but we are going to take some posts down if they break certain rules this morning in his interview with andrew ross sorkin, zuckerberg cited on health issues, for example is that a legitimate position to have, where you can say we'll get involved and decide whether this is legitimate in one area and not another? >> standing for having a voice and a robust wide open political debate is something the company stood for for quite some time and very much wants to continue. the distinctions made are always

going to be difficult and that's why you develop a number of different you know both rules over time that get enforce d around focusing on imminent harm and then you go a step further even with the oversight board that facebook has put together now for those decisions to be reviewed where content is taken down supposedly in error because these things are so hard setting up an oversight is something the company's thinks is appropriate and i think it's a great step forward to try to deal with these things in a meaningful way having a really broad birth for political speech and to have every politician take responsibility for the truth or falsity and for the review of what they say is isa healthy thn in a democracy and facebook is always trying to stand for that. >> bottom line, can the

administration do anything about th this >> i'm skeptical from a legal perspective. i've review ed what the draft of the executive order that's been circulated and it's not clear that the white house has the authority to tell the commerce department to tell the fcc to do a rule making. it's not clear that they have the, the ftc has power to do the type of review they're talking about and it's in fact probably a first amendment violation for the white house to tell government agencies not to advertise based on content and alleged content of sites so there's a whole bunch of things legally wrong with this and constitutionally wrong with it so the effect won't be that great at the end of the day. >> what about section 230? what do we need know that gives these companies protections and could that be at risk as that continues to gain momentum from both sides of the aisle about how that might not be fair and might not be the way we want these companies to be regulated.

>> so section 230 is actually designed primarily to encourage the type of you know, of work that's done in these extreme areas and extremist speech and in stuff that's held to be outside the first amendment and also to allow companies to decide how they speak in terms of what they allow you might actually get a return to some battle days of no review of anything because everyone's afraid of liability. so cracking 230 is a, is something that gets kind of thrown out as a possibility or a dpood thing that can be examined here and i think that the actual result of that would be precise ly the opposite of what a lot of the people are complaining about content on the internet want but in a lot of these cases, this is political posturing unfortunately for the left and right on how to do these things.

one of the areas is around the active promoegs of sex trafficking and that i think is a healthy you know, a healthy different take on something that had turned into with back page and a number of other publishers, they would essentially establishing sex marketplaces online, which is not exactly what 230 is meant to protect in the first place >> that sounds like a very generous interpretation. cnbc is classified as a publisher. very credible newspapers you don't see hate speech here or there and i guess it comes back to the debate whether it's removal and destruction of 230 or just a law that would be passed to classify the likes of facebook as publishers why should that no happen? >> you're not held responsible for reprinting president trump's tweets there's not lawsuits against

cnbc for actually, first amendment protects you in a variety of other ways. and so there are protections if 230 were ever to be ago gagregad but the idea that there's some radical distinction where internet companies are a different animal, 230 has provided some protection but the idea that it's led off this free for all that somehow destroying democracy is quite a fanciful interpretation >> right but i'm not sure we're getting the solutions from the companies themselves, chris, about how to deal with this issue, which continues to come up that you know, they step in in some cases, they don't step in in other cases >> there are rules there's load of politics where are the solutions if you don't want the regulation? >> there's a public articulation of those rules and facebook actually has reached out to regulators around the world to say okay, let's figure out how

we can do this and how governments can take some role in a way that doesn't stifle free expression. and that we can work together on that's one of the things where mark has reached out to leaders around the world to have these discussions. the oversight board is meant to catalyze a lot of these conversations. facebook's been working hard since i was there a long time ago and they're pending a lot of time and money on this you know, the idea that it's not perfect and so therefore you have to say that regulators are going to do this better, that they're going to keep content off the improper content off the net better than you know very sophisticated, artificial intelligence and machine learning int lek uhl property that's been built up is kind of a hrd to imagine that that's actually going to be the way this works out there's a role for regulators. for the public discussion about all this, but the idea that

regulation is going to solve these problems is, is i think pretty silly, actually >> chris, i get the idea that you can't stop people from expressing their opinions. that would be going against the constitution and against free speech and the way we express opinions today is different. it's online rather than in person i get that however, if the company, if facebook is going to make money alongside a particular post, whether by promotion or advertising around the edge of it, why should that not be a factor that then makes them responsible to check the accuracy we continue to have everyone make as many comments as they want and not restrict that for free, but if they're making a profit alongside of it, why does not make them more responsible in is. >> providing a platform is a public good. 230 has been meant to encourage this in an online environment and to the extent that traditional publishers operate in an online environment, they're protected by section 230 as well.

so the possibilities of how all of these and particular comment boards for instance on sites like cnbc or on t"the new york times" are protected by section 230 as well. that type of protection is a healthy expression of how you encourage better debate and more debate over time and that's one of the reasons that it shouldn't be touched in any major way. the idea that the solution if it were aggregated would somehow get to what the nirvana that the people are proposing where good, good speech could be easily regulated. we found over time that's almost impossible to achieve and the idea that the government is supposed to do that is one that the government expressley forbids. we need to make sure we're looking at systems that drive towards more civil discourse, that actually allow people to express, but sometimes, you know, political debate even can

be heated. and that's what our free speech tradition in america has endorsed and it's one of the things that the company has decided to stand for >> it's a ifascinating debate thank you for joining in on it today. >> 38 minutes left before the closing bell take a look at the markets going for a fourth day in a row of gains s&p 500's up half a percent. dow and s&p and dow transports by the way are trading at leflts we haven't seen since early march. completely regains some of the losses that we saw during the pandemic the nasdaq is is hihig high r n. zblnc zblmpblt burg and burger kine hard way about when you cross taylor swift fans on twitter

just 37 points now so

slipping a bit over the course of this final hour of trade. the high was up 211. nasdaq's up 0.4% let's have a look at individual market movers. shares of disney slipping. getting downgraded to underperform over concerns about his theme parks and film business in the wake of the coronavirus. keith burns saying disney stock has risen too far too fast and the performance is simply thanks to excitement around it u.s. theme parks reopening and six flags shares tanking stock's down 11% now to a story of what happens when restaurant brands clash with pop star is fans. yesterday, a tweet from burger king's twitter account sparked serious backlash from fans of taylor swift it all started when a twitter user asking burger king what's

y'alls favorite song one about her ex the users posted screen grabs of the alleged exchange taylor swift has more than 86 million followers on twitter and her fans quickly started tweeting their wrath at the jab, even pushing hash tag burger king is is over party to the eighth highest trending twitter topic according to the trend calendar today, burger king appears to be using the hash tag in a new promotion for discounted fries and a shake adding let's shake it off but guys, wilfred, mike, i know you used to work at burger king. i know you have some avid taylor swift fans in your house, that's an intense and large group of fans and culture is real. >> and just to be clear, the fact that more than 30 years

ago, i had a job at burger king and now i have two taylor wift fan daughters makes me peftly objective. i don't think there's a loser or villain in the story everyone kind of conveys their loyalty in their brand and i think burger king can make the best of it it is alarming you can mobilize that sort of mob i have a feeling if somebody said my favorite bruce springsteen song is the one about the cars, i don't think you'd have this much of an uproar from bruce fans >>i thought it was generally witty and funny and i don't think particularly offensive so i'm kind of surprised it led to that uproar, but to your point, we've seen the power that taylor swift's fans have and how quickly they can react from the clash a year or so ago with scoot er brawn and their involvement and so you've got to be extra careful when making a joke even if it was a good one. i think kudos to the burger king

twitter operator >> don't cross the swifties or the behive i think i would have tweeted all too well about her relationship with jake jigyllenhaal of course we'll be talking about this and more including new sales figures with the ceo of parent restaurant brands he's coming on to show new trend data they're seeing out of the states that have reopened. president trump just speaking about china kayla has the details in washington for us. >> that's a tough story to follow but i'll try by teasing some events that are happening next hour president trump just saying in the oval office that he will be holding a press conference or press availability in about 20 minutes time to sign that social media executive order but he announced another press conference also that will happen tomorrow on china. we are awaiting two specific actions on china from the white house.

the first is we were expecting the president to sign a bill passed by the house yesterday that imposes sanctions on officials for human rights offenses that's one of the events we are expegting. the second policy action is the announcement of potential sanctions on top chinese officials in response to beijing's new national security law in hong kong that would crack down on any public demonstration there and which has received wide censure from the u.s. government and democracies pretty much everywhere around the world. so we are awaiting those actions tomorrow we know the president was present ed a menu of options earlier this week as of this morning, there had not yet been a decision made on exactly which course of action he would take but the president playing executive producer here say iin there's going to be a big event tomorrow where he's fwoipg to announce this. back to you. >> thanks so much. we'll be very much focused on that when we get more details and that potential signing of the executive order.

we've got just under 30 minutes left of the session. dow ea dow's just turned negative so we are losing a bit of steam. s&p still holding on to a third of the gains you can see five sectors now if the red. energy and financials which are enjoying a nice bounce >> and perhaps on those china tensions which just continue to escalate here into the election, let's go to sue, there she is, for a coronavirus news update. >> hello, everyone here's what's happening at this hour marking a grim milestone in washington the white house of representatives holding a moment of silence to honor the 100,000 americans in the count so far of confirmed covid-19 deaths. the boston marathon has been canceled for the first time in that race's 124-year history it was originally postponed from april to september because of the pandemic north carolina's state senate passing a bill giving

bars a green light to serve customers in outdoor spaces at 50% of capacity. it would override governor cooper's order keeping bars entirely closed. the bill goes to the house the governor has not said if he will sign it and cyprus is going to great lengths to lure tour riss babb the nation will foot the bill for meals, accommodations and medications for vacationers who contract the virus while visiting for more, you can go to cnbc.com wilf, back to you. >> sue, thank you very much r for that we'll see you a bit later. still ahead, as lawmakers debate the next steps for stimulus, scott walker has a message don't bail out the state he'll join us coming up to discuss. let's have a check in on bonds had a bit of a steepening of the curve today. ten year is up two year is down 0.7% as you can see on ten year, back in a couple of minutes. at mercedes-benz, nothing less than world-class

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dow's just gone negative, down 39 points s&p 500 losing steam still positive if we close higher, it's four days in a row. nasdaq approaching the flat line russell goes further headlines around china with set to speak about it tomorrow up next, president trump hold ing that news conference

tomorrow on china. we're going to talk to steven roach, who's seen a number of twists and turns in the u.s. china relationship throughout his career he'll help make sense of it and we'll ask him how the latest ramp up in tension compares to what we've seen previously, including a spat over hong kong. we'll be right back. okay, give it a try. between wisdom and curiosity, there's a bridge. between ideas and inspiration, trauma and treatment. gained a couple of more pounds. that's good for the babies. between the moments that make us who we are, and keeping them safe, private and secure, there's webex. ♪ ♪ beautiful. i'm going to start the bidding at $5. thank you, sir. looking for $6. $6 over there! do i hear 7? $7 in the front! $7 going once. going twice. sold to the onion lover in the front row!

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get e*trade and get more than just trading ever something's gone mogotten into the office.m, i hear you. feels like there's no barriers between departments now. servicenow. the smarter way to workflow. welcome back president trump saying momenting ago he plans to hold a news conference tomorrow on china this after china approve d a resolution to impose national security laws on hong kong the u.s., u.k., canada and australia issueses a joint statement saying -- joinings now

is steven roach, senior fellow at yale university and former chairman of morgan stanley asia. we're expegting to hear from the president. he's really ramped it up in terms of the rhetoric against china on the coronavirus, now on hong kong. we could be looking at sanctions. what should investors make of all this >> well this is not surprising republican strategy was leaked in a document published by politico about a month ago said trump is not really defensible when it comes to dealing with the virus so the response of the president and the republican party should be to attack china. so he's been doing tha conspiracy theorys on the virus

in the wuhan lab, which of course are unfounded, with sympathy for the whistleblower who unfortunately died who it turns out was not really the whistleblower. and now, deflected attention by going after hong kong. the more the president is feeling the pressure, the heat on the virus and you know having reached the 100,000 death threshold yesterday, you can expect more and more hostile and belligerent attacks on china >> what do you think the reaction's going to be by people and companies currently based in hong kong of these actions from china? could it spark an exodus >> well, on a short-term basis, i don't see much over the longer term, if beijing

utilizes this new security law to take explicit actions in hong kong, either threaten people or companies or the press, then i think you will begin to see a migration quite possibly to singapore or other destinations in asia. asia's still probably the highest growth region in the world and there's a clear need for an international financial center and hong kong has played a critical role in that regard, but there's no certainty that while the law will certainly change things potentially, that beijing will act harshly on the basis of this law. >> i guess steven what's difficult with the hong kong situation and others when it comes to china is how much is political rhetoric, which as you say, is very much anticipated

into the election and you know crosses party lines here in terms of the blaming of china and how much is actually going to be policy reaction in the form of sanctions, potentially breaking up the phase one trade deal, which we know investors care deeply about. >> well, sara, you can forget about the phase one trade deal it was unrealistic before the pandemic and there's no way china's going to hit the targets of $200 million of incremental spending but there are a lot of other issues out there other than a sort of vacuous phase one trade deal the screws have been tightened a lot on huawei and its supply chain. there's a possibility of renewed sanctions over hong kong so this relationship has basically ruptured and i think we're in a

quasi cold war right now and it's likely to continue at least until november the 3rd if not longer >> steven, is china ready if the worst case scenario okwued for china and you did see a significant exodus from hong kong, particularly in terms of financial institutions that are based there, is china ready? are its capital markets ready to stand alone if that happens say for argument's sake tomorrow >> well look, i think the number one, the chinese companies would continue to raise capital in hong kong. the international companies would probably rethink that option china still has a long way to go though in developing fully robust transparent capital markets. especially with its currency nonconvertible the hope was it would achieve

that really by the end of this year that was a dream laid out by beijing about ten years ago. it doesn't look like it's going to come to pass. but there has been a lot of financial opening in hong kong over the last decade, but they have yet to complete the job and i think you know they would do okay they would certainly benefit more from having hong kong free and open as it has been. for quite some time. >> so if we do see the u.s. and other countries start to take steps against that, to actually limit the financial freedoms that hong kong has faced in international community, if we start to see sanction, other policy action targeting beijing, what's the likely response from china? >> well, i think sara, we've seen how it's gone in the trade war. there are always tit for tat

responses from china whether it's on trade or the free throw of journalists back and forth between the two countries. the u.s. expels a group in china. responds in kind and i think we'll see with respect to financial capital. keep in mind one important thing. that the u.s. is a, runs massive budget deficits which are going to explode in a way we've never seen before. we do not have the domestic where with all to fund our mounting budget deficits the largest foreign owner of u.s. treasuries happens to be a country by the name of china and so, it's not like this is is just a one way street. china has plenty of cards that it can play if it gets pushed up against the wall and you know that just underscores the fact

that this is a two way or what i've written about is is a codependent relationship and we can't just presume that we are able to exercise all the pressure in china as no response >> steven roach, thanks for joining us >> thank you, wilf >> up next, signs of life for retailers. an update on bank scenes those stories and much more when we enter the market zone coming up and you can always watch us live on the go on the cnbc app closing bell back in a couple of minutes. (vo) since our beginning, our business has been people. and their financial well-being. it's evident in good times, with decisions focused on the long-term. and crucial when circumstances become difficult. that continued emphasis on people - our advisors, associates, clients and communities gives us purpose, strength and a way forward.

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and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. welcome back about 11 minutes left in the trading day. we are at session lows commercial free coverage of all the action heading into the close. mike here to break down these crucial moments of the day and we've got stephanie link as well let's kick things off with the broader markets. stocks started the day higher but are losing team after

president trump announced he'll hold a perress conference on cha tomorrow ubs out with a list of stocks they think can perform the list contains salesforce, amaz amazon, nike and alphabet. and a technical analysis saying growth could continue its long-term leadership suggesting investors don't have faith in the rally leverage funds have the short position since 2016 presenting an opportunity to say to buy they say on the dips a lot to unpack. this headline on china, we're expgt ipechting the order signe any minute taking the steam out, but we're till nicely up on the week >> yeah, absolutely. although i just said at the top

of the hour, there was a stealth pullback going along it seemed as if and we don't want to make too much of this, but perhaps the overall market was finding it tough to sustain this upward steep trajectory which is fine and it was a reversal of the recent rotation even when the market was at its highs today and brent was negative, so it seems to me the china issues are not welcome but only really matter for the market when the market is going to be grasping for an excuse to settle back so that's what's been happening here. >> steph, just come to you as well in term of the intraday moves we've seen earlier, we saw an impressive recovery on the like of facebook, which have been in the cross hairs for other reasons but they, too, now selling off by 2% now. >> yeah, today felt defensive all day long and as you guys have been talking about, it's the china

tension. also the trump executive order on the internet names. i'm pleased they didn't fall more today what to me is the most interesting is that the economic data today was really lousy, really crummy and yet bond yields were up on the day. the ten year up a little bit and that usuggesting to me that people believe we're at the worse in terms of economic data points you're going to get better growth and so that's why value actually has been outperforming in the most recent days. i still think you want to own a barbell of some growth, some technology the secular stories are just too compelling in ai, cloud, security, et cetera, but you want to own cyclicals because we are starting to get data points from companies like toll brothers yesterday talking about deposits up 13%, the best since 2005 larry said health care rates are stabilizing. watch boeing and then restarting the production of the 737 max.

watch the auto production restarting because that's going to have a meaningful impact on the manufacturing part of the economy going forward. >> sara, we can hear you, but can't see you. meantime, know rnovartis partne with harvard on a coronavirus vaccine. hey, meg >> another giant company jumping into the covid-19 vaccine race novartis has agreed to manufacture a vaccine engineered by harvard and mass general at no cost. this is interesting because this vaccine technology is baseded on the same delivery mechanism that's behind novartis' gene therapy. one of the only ones that's approved together, they say expect human trials to start? the second half of 2020. so another modality here joining the many companies already in the race for a covid-19 vaccine, wilf >> thapnks for that mike to you on this. health care stocks again up

today having been strong more broadly this year, but another big announcement from another big pharma company it again kind of raises the question as to can all these companies that have performed so well really make that much money off this or is there only going to be one winner or only going to be companies that may produce the vaccines but won't make huge profit from them >> it's unclear that the market is even attempting to answer those questions. the bottom line is no, this is not going to be a profitable enterprise but the perception of a ton of money being thrown at a lot of these companies big and small, with products and without, is just a tail wind to the general enterprise and biotech, also because it's got this secular growth dynamic to it it was participating with tech just for fun, flow and stylistic

reasons as opposed to people making the call on the outcome of some of these trials. >> we are currently down about a third of a percent let's get a check on retail. bj's, lowe's and target posting strong sales more than 10% in the first quarter and some companies triking an optimistic tone burlington's store saying there's clearly pent up demand dollar gent saying since the end of the first quarter, the company has continued to experience elevated demand and here's gary philbin on squawk on the street today >> we're building this for the long-term. and you know, we'll navigate through the balance of this year first. and then i think it's going to suit us better going into next year know iing that customers ae going to be probably tight on budgets, needing value, needing convenience and i would even add in feel iing safe in a small bo environment. so i think those things work in

our favor. >> to that, we could add in constructive comments from some of the consumer facing banks this week like jpmorgan and bank of america steph, how much positivity do you make from comments like that >> i take a lot of it because they're at the front line. seeing it every day and the comments about may from just about every company so far from the dollar tree, mastercard, paypal, from bank of america, brian moynihan, they're saying may on the consumer side, is actually doing a bit better. on a month over month basis. certainly nowhere where we want to be, but i think we're making baby steps those companies, especially on the discretionary retail side, if they have consumable exposure, they're hitting it out of the park. this is why family dollar has 50% because it's consumables but what will be interesting to me is as we get through this, there's going to be a mix again towards more discretionary items

and that's when the margin story can actually inflect higher for these companies ch that's why i like target out of all of these at this point and still remain a buyer there. >> gary philbin said the same thing. starting to see the shift from the items people are buying. i'm back and i want to talk about the home builders because despite data today showing a nearly 22% fall in pending home sales, those homebuilder stocks have significantly outperformed the whole market and credit swiss believes they have room to rally. saying that more millennials are looking to buy homes coupled with underbuilding across the u.s. and that's created significant pent up demand in the housing market with entry level housing exposure and strong balance sheets like dr horton. stephanie, you've been i think dr horton. do you think we've seen the bulk of this move or are you bullish

like it can continue >> dr horton is up 03% from march lows so it's recovered quite a bit but it's one of the stronger companies in the industry and if you have millennials being 38% of home buyers, that's a nice tail wind then you have coupled with low interest rates and underbuilding. i think that the supply demand story is really very favorable dr horton has the best balance sheet. it had a good quarter in terms of market share growth and is trade iing at 11 times earning. so you want to pick and choose where you want to buy but this one is a high quality name and certainly if you were to see a pullback on this name is one that i would be buying >> well we are seeing one today. down almost 5% under two minutes to go in trading session. mike on the market internals as things have softened up here a bit. >> even before if you lookeded

internally, it was to the negative side. it's pretty pronounced so there's an undertone selling. then look at what is is working today. software versus banks. banks having probably a much deserved and needed pullback after huge gains this week then software, the old favorite, pickipick ing up the slack the vix, again, keep talk about how you would think it would have led lower with the strength of this rally. it has not sts stayed here in the high 20s so it shows you market's still on forward for what comes next >> we've got 40 seconds left of the session and just off the session lows we were briefly moments ago down about 190 points down 120 as we stand half a percent you can see that sell off there in the final hour of trade that's down 0.2% on the s&p 500. 0.4% on the nasdaq russell 2000 down the most today, 2.4%, but still up the

most this week sectors, ewe tutilities, healthe lead the charge. utilities up 3%. energy and financials at the bottom 3.4% today, but is up still 12% for the week as a whole. so a bit of rotation today away from the winners of the week at the bell there, sara, we are down 0.2% on the s&p 500 >> closing just off of the session lows as you mentioned. welcome back if you are just joining us marketing fell out just in the last half hour of trade. there's a picture on the dow closing lower by 147 points. still above 25k. president trump is holding a news conference tomorrow on china and kayla told us that

could include endorse iing a bil that sanctions chinese officials over handling of muslim minorities as well as what they have been doing in hong kong s&p 500 also slipped into the close, down .2% after being higher most of the day financials, which had been strong over the last two sessions, they were at the bottom of the pile today nasdaq, which held up better as technology once again led the day ended down half a percent and russell 2000 and index of small caps had been performing all day long we got the reverse where the russell 2000 had been doing really well, it did the worse today. coming up, we'll ask the ceo of restaurant brands about the outlook for the fast food tri and why sales at pop eye's in particular have soared 40% joining us to talk about the market first stephanie link. first to you on what was a pretty strong day then didn't get there in the end

we lost all that steam on those china headlines. >> yeah, certainly at the headline index level because we got a bounce in the big cap growth stocks that had led us until this recent face i think we were sputtering on to the surface and it could just mean at month end, you had these lots of shuttering around of different stocks and eems as if there's some slippage in h that movement we have come a long way. the equal waited s&p 500 down today. but it's up 5% week to date. so clearly there's been a lot of gains booked in a hurry. market is look iing a little bit stretched. i wouldn't say it's critically so and we've been feeding off the yen sentiment people fight ing the rall lirks not thinking it was justified it's unclear when we get to the point where people have bought into it, which sometimes means it's ready if a rest >> lots more to discuss, but first want to get to kayla with

comments come frg the president in the last couple of minutes. >> president trump is in the oval office at an event to sign his executive order that directs federal agencies to review a federal law that provides liability to social media companies that protects them from lawsuits about what appears on their platform. this executive order directs the ftc, the fcc, department of justice and state attorneys general to take on different tasks to essentially review the role of social media in de disseminating information and also to review government spending there the event is still ongoing, but the president is saying this will not only be an executive order k there will be legislation to follow on and the toernlg attorney general is there and he says there will be litigation that follows president trump says social

media companies are operating what is tantamount to a monopoly and that twitter's decision to fact check content on its site is nothing short of political activism so certainly, the administration is planning a multipronged effort just beyond what this executive order does today it is worth noting any legislation on the house, that is not likely to go anywhere, really love to -- the social media companies in a policy effort that's been under way for a year >> absolutely fascinating. going to pursue legislation. i get your point it's not long to go before the election and unlikely to get major legislation passed that said, it is worth bringing up another point that back in january, an interview with "the new york times," joe biden said that section 230 should be revoke ed immediately with other

platforms and i guess now the jeanne is out of the bottle and if both presidential candidates are pushing so hard for this sort of ction, maybe legislation is -- >> president trump that provides this company both parties have issue d that platforms in the conservative bias, that they are removing accounts and content that they don't see as silicon valley principles democrats feel like the social media platforms are too friendly to the right and are allowing what they see is provided by

right wing accounts to perpetuate on these platforms. so they both have issues with the shield of these companies so it's worth noting that there is sort of general across the aisle frustration with social media. but they don't see eye to eye on why exactly that should be rolled back and how it should be done and to protect whom >> i think it's going to be hard when barr says they are pursuing legislation against to social media companies in addition to the executive order. the president has been on the record tweeting against twitter for personal problems with them. in other words, the fact he was angry they fact checked some of his tweets it might make it hard to make a legal case for the ftc or other parts of the government when the president has been so vocal himself. potentially showing bias

>> the president has put a lot of content about his personal feelings and platforms into public demain here there is also legal opinion here just this wednesday, there was an opinion put out by the federal circuit court for the district of columbia here and they rejected a suit that a right wing, right wing conservative had filed against google, facebook, twitter and apple. essentially because her account had been banned from multiple platforms for some fairly provocative statements that she had made and the opinion from the d.c. court of appeals, in general, the first amendment prohibits only governmental abridgment of speech so a government cannot crack down on speech but a private company can. not only the president's view, but where legal literature

stands this fight is nowhere near over. >> thaupg for that pivoting to what this means for these stocks, stephanie link, i know you own a lot of these stocks are you concerned? >> well, negative headlines are never good for multiple eck pangs. the good news is that actually earnings are going higher so you don't need multiple expansions but this is going to cast a cloud on this group for a while after especially having such a nice run facebook's up 20%. google's up 15%. twitter's up 40% from its low. so this makes it very easy to just say i'm dwoik to take my profits and see where this goes. i just believe that long-term, there are roics and companies and advertisers, it's the highest and that doesn't change things so maybe you have a sputter step here. maybe they long for a little time but i think you're going to want to come back to these names once you get clarity and oh, by the way, i'm sure this is going to get challenged in court it could be years. in the meantime, i'm not doing anything with my positions at

this point not happy, but not doing anything and this is why you want to own a barbell of tech, health care then some cyclicals so you can stay in the game. >> mike, a little deja vu here we've seen the threats before from policymakers. is this time different >> it's not apparently different just yet i do think the -- suggests for investors is to say this is noise and it's probably not going to bear on the business. we should keep in mind when this provision was passed in the 1 0 1990s, social media didn't exist. yahoo! and aol and some of the internet service providers, so it wasn't really about necessarily intervening in social media, so something probably has to be figured out in terms of protocols and guardrails but i don't think anyone thinks it's a threat to the business model right now political advertising is not a particularly big business and

twitter bans it all together so i don't think they love the fact they are kind of sometimes in the public mind dominated by political conversation and i think advertisers would love it if it was something different but that's monot the world we hv now. >> we've got earnings. salesforce in particular josh lipton. >> sales force is reporting 70 cents versus expectations of 69 cents and revenue at 4.87 billion. street was closer to $4.85 billion. the software revenue earning 4.6 billion. in line with expectations. professional services. so their consulting services 290 million for the quarter. turning to the guidance here, they're looking for q2, between 66 and 67 cents. that's light the street was looking for 75 cents ab the revenue forecast, they're looking for between 4.89 and 4.9 billion. analysts were hoping for more

like $5 billion and for the year, they say look for eps between 293 and 295 and they say look for about 20 billion. just looking through the other areas. sales cloud, the company's flag ship product, 1.25 million service cloud, so customer service 1.25 billion sales platform, 1.4 billion. marketing commerce cloud, 714 million. that call starts at 5:00 p.m. eastern. >> don't miss jim cramer's interview tonight. but mike, salesforce i guess one of those software stocks that's higher year to date which is obviously rare versus the rest of the index, but not back to its full time highs quite yet. >> that's right. i mean offering guidance of any sort is a flex in this environment and even if it is a little bit below what the street was looking for, i think it shows you that maybe the stock has to kind of come to terms

with the fact they're meeting expectations but this is always a situation where you don't necessarily want to take the first reflex move because sometimes the conference call and what management has to say kind of holds the floor more than the numbers themselves. so after a bit of a run, wouldn't be surprised for it to calm down a bit, but hard to say that this is really a big test for the stock just yet >> steph, i think where are you on salesforce? you've likeded it in the past. do you still on it >> yeah i do still own it. and i think it's remarkable that they're even giving guidance at all because there are so many companies that aren't. we knew u licensed revenues were going to be weak we knew they had a lot of smb exposure numbers have been coming down but this is a company that is poised to have 15 billion in free cash flow by the end of fiscal 2022. that is what i look at because you want them to have free cash flow so they can invest in the business and that's what they've been doing

they made a bunch of good acquisitions this year and the year before and inn this ye thi year they're not going to do as many m and a activity, but as the macro calms down, you'll start to see operating leverage but i applaud them for giving any kind of guidance it's lagged many of the software names year to date even though it's had a nice run up 15% >> i wanted to ask you about the bank holdings you have which we've discussed before, wells fargo. we had better news this week out of jpmorgan and bank of america. we're going to hear from charlie schaffer at a conference tomorrow wells fargo still about 20% year to date behind the other two names i mentioned. have you been tempted with the good news to buy any more wells fargo this week? >> actually, i have been adding to it last week a little bit this week.

>> i still believe in the story. the ceo. i till think their capital levels are adequate. i think the valuation is crazy cheap. even if they cut the dividend, that would be okay i think we've talked about this, wilf, i think people might prefer that just to shore up their cash and their balance sheet better but i do think that if we believe the economy is going to recover in the second half of this year into next year and the year there after and we think manufacturing has seen a bottom and the consumer will stay fairly healthy, i think this valuation is is very attractive and i like the turn around torre very much. >> we've got more earnings to tell you about in order strorm is out courtney reagan tracking that for us never mind, we're going to the president. >> what's going on as well as anybody. it's not good. a small handful of powerful social media monopolies controls the vast portion of all public and private communications in

the united states. and we know what they are. we don't have to name them we're going to give you a complete listing a signed copy of what i'm going to be signing in a couple of minutes and you'll see what we're doing. they've had unchecked power to sensor, restrict, edit, shape, hide, alter virtually any form of communication between privat citizens or large public audiences. there's no precedent in american history for so small a number of corporations to control a large sphere a and that includes individual people controlling vast amounts of territory and we can't allow that to happen especially when they go about doing what they're doing because they're doing things incorrectly. they have points of view and if we go by that, it's amazing there was a success in 2016 but we can't let this continue to happen it's r vevery, very unfair.

you look at the statistics and what is going on and i think everybody would very much agree with that. including democrats by the way i saw quite a few democrats are aing this is about time something is done so let's see if they keep that decision after a they hear that we agree with them the choices that twitter makes to suppress, edit, blacklist, ha doe, ban our editorial decision, pure and simple. they're editorial decisions. in those moments, twitter ceases to be a neutral public platform and they become an editor with a viewpoint and i think we can say that about others also whether you're look iing at google, facebook and perhaps others one agree jous example is when they try to silence views they disagree with by selectively applied a fact check f-a-c-t fact check what they choose to fact check and promote ete is nothing morea

a political activism group or political activism and it's inappropriate. you look at what's happeneded. where they're going, where they're coming from. i think you all see it yourselves this sensorship and bias is a threat to freedom. imagine if your phone company silenced your conversation social made area has more reach than your phone company, than your newspapers by far more reach than a lot of your traditional forms of communication. therefore today, i'm signing executive order to protect and uphold the free speech and right of the american people currently social media swrigians like twitter receive an unprecedented liability shield based on the theory they're a neutral platform, which they are not. not an editor with a viewpoint my executive order calls for new regular laces under section 230 of the communications decency

act. to make it that social made area companies that engage in censoring or any political conduct will not be able to keep their liability shield that's a big deal. they have a shield they can do what they want they have a shield they're not going to have that shield my executive order further instructs the federal trade commission to prohibit social made ar media companies from engaging in act of commerce. this resides in section 5 of the federal trade commission act i think you know it well most of you know it quite well additionally, i'm directing the attorney general to work, rate with the states, hooe going to be working very much and cleesly with the states to enforce their own laws against such deceptiveness practices. the states have broad and powerful authority to regulate within this arena and they'll be

doing it and we encourage them to do it if they see as weath'v been'ing what they're doing is tantamount to monopoly. to taking over the air waves can't let it happen. otherwise we're not going to have a democracy not going to have anything to do with a republic. finally, i'm directing my administration to develop policies and procedures to ensure taxpayer dollars are not going in any social media company that repressed free speech the government spends billions of dollars on giving them money. they're rich enough so we're going to be doing none or very little of it as president, i'll not allow the american people to be bullied by these giant corporations many people have wanted this to be done by presidents for a long time and now we're doing it i'm sure they'll be doing a

lawsuit and i'm sure we'll be going for legislation and it will start immediately i've been called by democrats that want to do this so i think you could possibly have a bipartisan situation, but we're fed up with it any questions? >> have you given consideration to deleting your account, just walking away from this platform? >> if you weren't fake, i would not even think about it. i would do that in a heart beat. >> i'm real, sir >> the news is is fake t if you look at what you guys print in newspapers ch if only the public could understand. they're read iing a story and ty think it's real in so many cases. ooichl not saying in every case. you have some great journalists. some i have great respect for, but u largely, i find that at least in a political sense, there's so much fake news it's disgraceful. i would do that in a heart beat

if i had fair, if we had a fair press in this country, i would do that in a heart beat. nothing i'd rather do than get rid of my whole twitter account but i'm able to get to i guess 186 million people when you add up all the different accounts and add facebook and instagram it's a lot of people and that's more than the immediamedia companies have frankly by a lot. and so if i get a story that's wrong, i can social where'd mead armedia, i don't usually use the word twitter, i say social media, but i put something out and the next hour, the next minute, everybody's reading about it i'd like to ask the attorney general please the to say a couple of words and he's very strongly behipd nd it backing it powerfully we're also going through congress >> as you mentioned, one of the things i found has the broadest bipartisan support these days is the feeling that this provision

section 230 has been scratched way beyond its original intentions and people feel that on both side of the aisle. this was adopted 25 years ago to protect the fledging industry and its purpose was to allow websites that were serving as essentially bulletin boards for diverse third party content coming on to say you're not responsible for the content of that third party information and it also tried to encourage these companies to take down things like child pornography or human trafficking advertising and things by saying if you act to remove this kind of object abl material, you won't be liable for taking it down. now it's been treched to allow what have become really behemoths that control a lot of the information in our society to engage in sensorship of that

information. and to act as editors and pub libbers of the materials so when they put on their own content like fact check and cure rate and start sensors content and foreign governments like communist china, they become publishers and shouldn't be entitled the same kind of shield that was set up earlier. now this executive order is is a very strong step toward addressing this problem. it sets up a rule making proc d procedure. to try to get back to the original understanding of section 230. it also empowers the attorney general to work with state attorneys general to come up with model legislation it addresses this at the state

level. and we're preparing federal legislature, which we'll be sending over shortly for the office of management and budget. there's a bit of a bait and switch that occurred in our society. these companies grew because they held them out where a variety of voices could come on and be heard that's how they grew. but now that they have become these very powerful networks after they've grown by holding themselves out as free public form rum, they've now switch and are using that market power to force particular viewpoints. and that's wrong and has to be addressed not obl to thi executive order but i think litigation going forward and by

further ax on political hill >> have any questions for the the attorney general >> yes, i do mr. attorney general, not only have you been against section 230, the vice president has said he's against section 230 do you believe that the ex executive order that the president is is about to sign in any way repeals or amends section 230? >> no, it doesn't repeal section 230. i'm not against section 230 if it was properly interpreted and applied but it's been stretched and i don't know if anyone on capitol hill who doesn't agree that it's been treched beyond its original intention i think this will help it get back to the right balance. >> mr. attorney general, can you give us more detail on legislation both you and the president refer to what do you want to do in that >> we're still reviewing a number of possibilities and it would be premature -- >> one of the things we may do is just remove or totally change 230. what i think we can say is we're going to regulate a

it's a provision and wee going to regulate it you take a look at this as an example. twitter moments. of the mueller witch hunt. we won on the right it was a total fraud 76-. okay 76-1 you think that's fair? twitter classifies the term illegal alien as hate speech illegal alien. you look at what china, just article after article. here's one this is our, the arbiter, this guy, of what's supposed to go on twitter. he's the one he thought that he thought and used cnn as a guide, which is fake news uses cnn as a guide. his name is yoel roth and he's the one that said mail thin

balloballo balloting, no fraud, really? there's cases all over the country. if we went to mail in balloting, our election all over the world would look as a total joke it would be a total joke there's such fraud and abuse and you know about harvesting where they harvest the ballots and they go and grab them and they go to people's houses and say sign here. now doesn't work now an absentee ballot, you can't be there or are sick, you do all sorts of things to get that, there's good security measures but where they send out like in california, millions and millions of ballots to anybody that's breathing, anybody in california that's breathing getting a ballot. >> mr. president, that's not true >> i'm not finished. here's your man. and that's on twitter. and the amaze iing thing is he' wrong and even no matter who it is, they will admit he's wrong because there's tremendous controversy on mail in voting.

and i can say this the republican party cannot let it happen. go ahead >> you know gavin newsome has not sent ball loots out to everybody in california. only registered voters so what your tweet said was not wrong. it was not correct it was wrong >> oh, really? so when he sends out 20 million ballots in all the mailboxes and kids go and reaid the mailboxes and hand them to people that are signing the ballots down at the end of the street which is happening, they grab the ballots, you don't think that happens? there's ballot harvesting. we have seven elections for congress and they were like tide. and they lost every one of them because they came and dropped a whole pile of ballots on the table. you don't think they rip them out of mailboxes you can read about it. take a look. they do worse than that. in some cases, they won't sell

to a republican xunt a conservative community they don't happen to send the ballots to these communities and there's no way of checking you have to go and you have to vote voting is a great thing. voting, we would be the laughing stock of the world and if you just use common sense, you know that's going to happen but they raid the mailboxes they can even print ballots. they get the same paper, the same machine, nothing special. get the aim paper. the same machine they print ballots and bill would have to do a great job to catch him doing it or your state authority would have to, but you have tremendous potential and you have tremendous fraud and abuse, but you have tremendous potential for fraud and abuse. go ahead >> mr. president, you said in one of your tweets you would consider shutting down twitter and social media companies did you actually mean you'd want to shut down -- >> i have so much it seems influence over twit ner the sense of people wanting people to see twitter because ofwhat have

i have a vast number of plat fo forms. millions of people i think if twitter were not honorable, if you could have a guy like this be your judge and jury, i think just shut it down as far as i'm concerned but i'd have to go through a legal process. >> how >> i'd have to ask the lawyers have to go through a legal process. if it were able to be legally shut down, i would do it i think i'd be hurting it very badly if we didn't use it anymore. we have other sites we could use, we'd have to develop other sites and i'm not just talking about twitter. look at facebook the try bual they set up at facebook this woman who you remember testifying recently in congress. her hatred was so incredible toward the republican party and me that there's no way you can get a fair trial so this is not like it's

supposed to be thos not like it's supposeded to be so we're going to see what happens and you know what, i guess it's going to be challenged in court, what isn't. but i think we'll do very well >> mr. president, as to potential litigation, can you discuss the timing of that and what is the remedy that you're going to be seeking? >> what i was referring to, there is litigation going on over time on section 230 in its scope and we would look for appropriate vehicles to file in and file a statement of interest >> so you wouldn't be filing individually >> thank you >> i'm worried about the situation in india and china >> india, he loves india so much, he's never asked a question other than an india question i just got back from india they like me in india. i think they like me more than the media likes me in this country. i like modi, your prime minister

a lot. he's a great gentleman have a big conflict going with india and china. is that what you're talk iing about? >> yes >> a big conflict with india and china. two countries with 1.4 billion people two countries with very powerful militaries and india's not happy and probably china's not happy but i can tell you, i did speak to prime min terrorister mo drdi he's not in a good mood about what's going on with china >> mr. president, have you spoken to -- >> you want to mitigate between india and china. >> i would do that i would do that if they thought it would help if i were the mediator -- have you spoken to the family of george floyd yet >> no, i haven't, but i feel very, very badly it's a very shocking sight bill and i were talking about it

before one of the reasons bill is here because right because we're very much involved. i've asked the attorney general and fbi to take a very strong look and see what went on because there was a very bad thing that i saw i saw it last night and i didn't like it. >> do you think those police officers should be prosecuted? >> i'm not going to make any comment right now. i think what i saw was not good. was not good very bad anybody else >> are you definitively staying in the u.s. china trade deal >> we'll be announcing what we're doing tomorrow with respect to china and we are not happy with china. we are not happy with what's happened all over the world, people are suffering. 186 countries. all over the world, they're suffering. we're not happy. thank you very much. >> press, let's go come on. let's go come on. >> thank you, everybody. thank you.

>> president trump escalating his twitter fight and his fight with the social media industry there signing an executive order that aims to limit the illegal protections that shield social media companies from liability from the content that everybody posts on the internet. there's the tok charts of facebook and twitter they're higher after taking a spill into the close the move follows that decision on twitter by twitter on tuesday that prompt readers for the first time to check the facts in a tweet sent by trump. the president saying that fact check amounted to an editorial decision by twitter and alleged twitter and facebook during that conversation of political activism and bias. he said it should cost those companies their protection from lawsuits for what is posted on their platforms. and essentially punting it over to the fdc to look into this section 230 protection that these companies have enjoyed

barr by the president side talk ing about litigation and legislation. but not spelling out any specifics on that front. just saying we are going to regulate it. we are going to look at it the companies sort of shaking off those headlines. after twitter doubled it losses into the close it was down 2% or so all day end ed the day down 4.5% >> yes, certainly huge and sudden pick up in terms of negative political head loins for these companies in just the last couple of days, but as we discussed with kayla earlier, the prospect of successful legislation before the election is pretty low and it remains to be seen exactly what effect the executive order has without lels, but a strong set of messages and rhetoric there from the president. let's bring in jeff, yale school of management senior associate dean for executive studies jeff, clearly, these leaders, jack dorsey and mark zuckerberg, don't have an easy job in trying

to work out the best way forward here, which is you know keep free speech in play, but also decide when there's lies and inaccuracies on their platforms. who do you think has done the best job so far? >> well, it's gotten even more complicated just coming off the messes we just heard i think to quickly respond to the specific question you've asked, wilf, is i think dorsey has done marginally better i think they both lack for transparency and consistenccons. i think zuckerberg had a great interview are sorkin this morning and yet it was riddled with inconsistencies he said they would step on in mismakes we just heard some trying to be

corrected during this press conference were that online, he would consider that to be wrong but twitter would not put out the information that was inconsistent about government newsome sending ball loots out o everybody in the state things like that that is zuckerberg said we'll correct. we'll correct mistakes that r put out there, misinformation. having to do with health care. like hydroxychloroquine in brazil well the question is what does he say about the commander in chief of brazil versus here? is there consistency acro across-countries in this was zuckerberg's positions and issues thag to do with hate speech so he's regulating late in the game hate speech. that sounds like more. they're not doing political ads than twitter, which twitter is is actually labeling some false information, which is brand-new and it's surprising that mark zuckerberg and jack dorsey wouldn't hang together on this as nathan hail, we don't hang together, separately, but still you wonder are those, why those

two don't stick together coming off of president trump. he might draw u in tomorrow's announcement on china with us because this is rather confusion. may your wishes come true. as if president trump were to have this deleted. these companies now have legal liability to police this hate speech and you have false edited a video of nancy pelosi or joe scarborough. >> do you think it's a communication problem. some of the huge issues that they have created and found in these incredible flplatforms an not understanding what to do about it

>> i'll spare you the quote i'll read you from robert open heimer, the father of the manhattan project, the nuclear bomb is that how scientists have to know sin we learned it late in nuclear energy, biotech and now in information tech and social media is that the creators are responsible for the misuse of their information. they should be responsible for this the communications decency act of 1990 as was being discussed earlier on the show, mike was saying that's way out of date. and the communications act of 1934 giving sec any authority in this is crazy. the broad band is already they have is for access it's for public. it's for safety issues has nothing to do with content or else every online publisher would be subject to content review we know that's first amendment violation. they can't edit content and these companies should be classified as media companies and dorsey and zuckerberg should

stop fighting that because both side of the al are coming to that conclusion. these are media companies fueled by technology. >> we knew you'd have something to say thank you very much. always good to get your view pop eye's has been powering sales for fast food restaurant brands we'll ask the ceo about the brand's chicken sandwich and whether revamped cpetiomtion from mcdonald's and kfc could take a bite out of sales we'll be right back.

earnings from a trio of big retailers have hit in the last few minutes. courtney has the nurls >> let's start out with costco's third quarter.

this was a michigan miss when looking at earnings. those comp sales ended up only about 5% for the quarter inclusive of gas and foreign exchange they were high er if you collud those two items. digital sales for costco up almost 65% and the company spent $283 million in covid related costs during the quarter remember this was an social retailer open to the public. shares are down in extebd tended hours. we get a glimpse of costco every month so we did know a lot of the detail there and we're waiting on that call to start. on to nordstrom's first quarter. this was a miss across the board. very big miss with a loss of $3.33. almost three times as big as what analysts had been expegting. revenues lower than expegted digital sales grew but only about 5% just more than a third of sales do come online already for nordstrom. this company spent $172 million

in covid related costs and share are only slightly higher here and williams sonoma. a really big beat for earnings comps here positive, up 2.6% despite all the stores being closed for big portion of the quarter because of the government mandates. still though got 56% of sales come online so they were able to really add to that cushion of those closed stores. only pottery barn saw comps negative and just down about 1.1% for the quarter shares of williams sonoma higher by almost 8% back to you. >> lot of people cooking in that home thank you. restaurant brands out with new numbers. american consumers are returning to fried chicken pop eye's. seeing growth of about 40% through the end of march to may. compared to being flat in the second half of march

burger king and tim horton's also recovering, but not to those levels joining us now, the ceo of restaurant brands. welcome back, jose why pop eye's? why is it such a standout? >> thanks for having me. the team has done a great job of engaging with customers here in the u.s. obviously the launch of the chicken sandwich at the end of last year was a pig impact brought a new consumer to our restaurants. opened up the lunch day part the single user lunch day part, a big opportunity for the business we've had momentum since last year be w the business that we're seeing new and repeat customers. lunch is growing the drive through business was growing. we had really strong momentum and at the end of the year, we launched additional channels for delivery both third party as well as delivery through our app and website. all of those have been really

important during the crisis so as we shifted to a shutdown and everyone was staying home, our delivery business grew we were able to pivot and communicate much more around family bundles and our big family offerings have worked quite well in delivery along with the chicken sandwich and we're seeing essentially all of our business at popeye's from ancillaries to beverages to bone in chicken as well as the sandwich and boneless chicken growing and i'm really proud of the work that our teams are doing to be able to deliver that safely and consistently acrosind chicken phenomenon we saw before the pandemic jose, what about burger king why negative you've outlined a number of steps that popeye's has taken to do delivery and pick up and i

assume you've been doing that at burger king as well so why aren't you seeing that return to growth as states have reopened >> we have about 20% of our restaurants the dining rooms opening up at this point in the u.s. and so burger king is beginning to see momentum in the dine in business i think the team at burger king has done an exceptional job but the delivery business has been growing. we've launched our own app as well with delivery in december and now one out of every five transactions is coming through our own app. we call it the label delivery. so we've seen a lot of our service modes drive through delivery as well as mobile order prepayment and curb side pick up and other takeout methods working in restaurants and the progress that we're making at burger king in the u.s. is is also quite positive and encouraging from where we were around the beginning of the crisis in march around negative 30 to now negative mid single digits

it's tremendous progress work that the franchisees have done and we continue to work hard to capture market share in this important moment in our economy and in our market. >> i wanted to ask you about this brief spat with some taylor swift fans online. led to the hash tag burger king is is over party and my question on it really is you feel making jokes on social media is worth it in the long-term? maybe this particular example has been worth it or hasn't and how you make those decisions internally who in fact made the joke on twit n twitter? was it approved by you >> we have a really strong social media team here in miami and toronto for each of our brands and obviously you can tell from the engagements that we have in social media and kind of the tone that we have, it's and we

engage with our consumers, our guests and we try to have some fun with it. we meant no disrespect whatsoever to taylor swift we're big fans and we respect the work she does. and we certainly didn't wake up yesterday with the idea of being on the other side of swiftee fan base that she has and we feel good about the work that we do and proud of the work we do and we continue to want to engage our guests on social media >> well thank you for clearing that up. big topic for us as far as safety is is concerned. what are you doing in your restaurants, especially you know those that don't have that large square footage and people are afraid we're told to social distance. we're told that the super spreaders really can have an impact indoors in high traffic places like restaurants. how do you deal with some of these issues

>> yeah, we've been focused on safety and security in our restaurants since the beginning of the crisis. we've been open for business throughout the u.s. since the beginning. we've been i think 95, 97% of the restaurants have been open since day one. we've focused all our energy around safety, security. one anr ppe masks, gloves and you've got acrylic screens and now as we go into the opening of the dining rooms we've taken the same precautions and the same measures and the same approach focusing on the safety and security of our team members and our guests we've added acrylic screens in many cases in the front counter so that you can order and have an additional protective barrier. we've added signage everywhere so we remind all of our guests coming in around masks, if that's a requirement locally as well as ensuring that they maintain social distance we have the restaurant fully marked everywhere so people know where to stand, and where to

order their food and where to sit, as well we closed our self-service drink stations and we make sure that folks can get their drinks from the back of the house from the team members serving them at the counter and we've limited the interaction and the contact and we've brought contactless payment and all of the measures that we're taking are aimed at ensuring that people feel comfortable and confident that they can enjoy the great tasting food that we enjoy and popeye's and tim horton's and they can enjoy it in our restaurants and enjoy it safely, securely as they have in the past and as we're ensuring that they can in this important moment. >> jose, thank you for joining us with an update on the business >> thank you so much >> we appreciate the time. >> breaking news on san francisco's plans to reopen. aditi roy has them for us. >> hi there, wilf.

san francisco mayor announcing the time line of what types of businesses can open and when let's take a look at that time line now child care, botanical gardens and a elf weeks later, they'll allow more indoor retail and the opportunity to go into stores and outdoor dining with no spectators and also allowing private household indoor services like nannies or house keepers, religious services and outdoor exercise classes and non-emergency medical appointments july 13th, in door dining with modifications, hair salons, barbershops and by appointment only and they haven't outlined exactly when phase three will come upon the city which would be schools with modifications, bars, nail salons and massage parlors and tattoo parlors and the mayor also mentioned that everyone when they're outside will have to wear masks. back to you guys >> aditi roy, thank you, with an

update on san fran another 2.1 million jobless claims filed last week totaling 41 million claims made since the pandemic was declared in march, a stunning number of americans out of work. so as the lawmakers mull a new round of stimulus, what's the best way to make sure the economy recovers scott walker writing his take in "the new york times don't bail out the states and he joins us now. >> governor walker, thank you for joining us this has required an enormous cost for the states and not to mention the economic slowdown is depriving them of key tax revenue. why do you say we shouldn't bail them out >> well, first and foremost, the important thing you just alluded to and that is with over 40 million people filing unemployment claims we need to focus helping workers, first

>> most have huge backlogs out there and i believe the states are asking for money should be taking state employees who are collecting paychecks right now sitting ideally at home and reassign them send them out. they can do them right from home and send them off to doing unemployment claims and they can put people back to work and that should be priority number one and then another couple of quick points, along with that, a second point is that federal money isn't likely to be around far into the future. we saw that after the last recession when literally tens of millions of so-called stimulus dollars were sent to the state and that evaporated over time and others like me who came in in 2011 were facing big holes in part what we did in wisconsin was enact real reforms we didn't just cut things and raise taxes instead we chose a different round and reformed our

state government, and it hasn't push good real reform in decades. we shouldn't have to bail out taxpayers in wisconsin or other states who have been frugal shouldn't have to bail out failed states like illinois where they haven't taken that action finally, the federal government just doesn't have any money either $25 trillion in debt and within the decade they'll have a highe debt to gdp ratio than world war ii there are reasons why we shouldn't be bailing out failed state governments. >> governor, the reforms that you passed as you said when you came in and you go into more detail about those in your op ed, would you not have bothered passing them if you had been under financial difficulties would you just have ignored those would-be reforms that you pat yourself on the back for now? >> i certainly would have pushed them having experienced them before that, but i think it would have been incredibly

difficult to get lawmakers in both of our chambers to get them to act on these big and bold reforms particularly considering the backlash that we got from protesters at the time in retrospect we're one of the best positioned states in the nation because of the reforms that save local and state taxpayers more than $12 billion in the years since and unlike illinois where they don't have half of the pension liability covered and wisconsin, number one in the nation and fully funds their pension system and we have a system where the rainy day fund is 190 times bigger than it was when we first took office and we have state surpluses in all of the years we were in office -- >> governor, but we're in a crisis >> we're in a crisis i mean, the u.s. government is -- the u.s. -- wait, hold on. the u.s. government borrows. we have deficits and we have debt when we need stimulus and relief which is what we saw in response to this pandemic and the states can't do that

you know that and you said it's about workers. what about ail of the workers that are paid by state governments? should they not get relief as well and not get paid especially some of those essential ones like police force and teachers and nurses at the va and -- you know, the list goes on and on. you know this well >> they should absolutely be the first ones to be paid and they can do that if they use some of the reforms we've done before. in the bill, the liberal wish list that i call the zeros act that nancy pelosi put out that put everything on the left they've ever wished for and added zeros to it, almost $75 billion out of $3 trillion, and things related to the testing in terms of contact tracing, pay for that, pay for the things that actually involve health care, but don't bail out the state of illinois, the state of california and the state of new york, other states who have had

proble problems having problems making real reforms for decades we should be making sure that workers get the assistance that they need and the best way to do that is to encourage states who have been lax on reforms to put in place real reforms and pay for what's needed to cover covid-19 and don't pay for junkets to pay for governments at both the state and the local level who haven't lived up to the responsibility of leading. >> we can have this debate for a lot longer, governor walker, but unfortunately, we are out of time we had a lot of breaking news including the president this hour thank you for joining us. >> scott walker. >> wilfred >> our frank to governor walker. >> we have breaking news elon musk is the subject phil lebeau has that for us. >> take a look at tesla. the proxy statement dropped within the last hour and the board officially certifying that elon musk did receive or has seep the benchmarks hit for the first of those pay packages. what does that mean?

it means he receives $1.68 million options to purchase tesla shares at $350 a piece. if he exercises those, if he did it today it would be a paper profit of $768 million remember, guys, he has to hang on to those shares for at least five years nonetheless, the first payday for elon musk hitting the benchmark. >> big payday. phil lebeau, thanks so much. pivoting to one minute left and mike santoli slipped into the close, not too significant when you consider the dow is still up 3.8% this week >> yeah. not too significant. it didn't really cut into too much of the gains andat 2:00 p.m. into the close and clearly, there's slippage in there as this harmonious rally and we'll see if the clock has struck 12

and nothing says it has and people are on alert and given what's come and not too built in and the fact that we're a month in sara will go for a final thought, but no. we are out of time >> we're out of time >> thanks for watching "closing bell." we'll hand it over to "fast money". >> fast money starts right now i'm melissa lee. guy adami, tim seymour, dan nathan and pete najarian will join me shortly. president trump says he will hold a news conference on china tomorrow we are live in beijing with the very latest. plus, the four words that sang disney shares today. what they are and how our traders are trading it later and the cannabis comeback and what has the pot stocks blazing higher and we begin with the major new development coming out of the white house after president trump signed an executive order targeting social media companies. let's get to it, kayla tauhe