things like gold and energy i think are worth looking at if you don't have any in your portfolio. >> great, thanks we'll go now -- we're at not great levels we could take a three-shot or not. andrew and becky, have a good weekend. did you see the one person they loved your hair you're doing great i don't know if you're shipping people in here not that hair matters. >> look forward to seeing you on monday >> good. make sure you join us next week. "squawk on the street" is next good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber live from separate locations on this final trading day of the month powell speaks at 11:00 a.m. eastern time the president is expected to

roll out some responses to china's hong kong law as the showdown with twitter gets escalated around the minneapolis protests oil near 33, the focus is squarely on twitter and this rule violation that the president's account got slapped with, and then the white house account, the official white house account retweets >> we're all kind of confused, as marc benioff, who is against this obscure regulation that gives these companies an exception todo this, many are confused it seems president trump wants to create his own enemy with -- if you start regulating these companies rather than having the exception, they're always going to have to put a counter to what president trump wants. i think what he may not understand is free speech is nasty. what he had until this was a

great run of things. it's going to make it tough for him to be aggressive on twitter. he doesn't have press conferences that work because of all the displeasure he had with regular reporters. he's disintermediating himself from the public. if he becomes regulated, if it's journalism, it's a nightmare for him. >> yes, if, in fact, he is held to a standard of truth and fact, that could be somewhat difficult. now, there's a lot of interpretation that goes on in that there's sort of two separate things going on here the executive order from yesterday, people trying to understand and interpret what is behind that, and what that would allow for. and then there's still the consternation that you have had

for quite some time that comes from mark zuckerberg's interview yesterday with andrew sorkin, just in general the idea that facebook continues to say it's not our issue as to whether you lie on the platform, whether you spread lies. >> i'm a barron sacha cohen fan, when he gave his speech about how facebook would take -- be willing to take advertisers from ge gerbils, mentioning world war ii, but facebook agrees with president trump that anything goes anything goes is expensive can you imagine the thousands of pages, every second produced on facebook that someone would have

to sort through them like they have to do with the "new york times" it's almost impossible i get the dilemma. when we look at this situation, there's 1 out of 4 people unemployed we may run out of stimulus, we're debating jack dorsey putting a caveat to the president. it almost seems surreal, doesn't it >> you're suggesting it's another exercise in distraction? >> i don't know if it's a distraction or a fit or temper we have a major problem on our hands. we have a health care problem that's turned into a financial problem. let's get people jobs, that's what i would be focused on it's like 1932/33 if president

roosevelt focused on the fact that someone criticized him for something he did as he was secretary of navy and he's now giving money to the navy we have to focus on this >> miller tayback is out with a comment. we will talk about twitter, it's a public company, it gets attention. the hong kong response that we expect from the white house today they argue is much more important. the president moments ago tweeted one word, china. they did vow a response to this hong kong security bill. there's a general in china who suggested they could attack taiwan in a last ditch effort to keep them from gutting full independence and then jpmorgan last night saying they're dialing back their positive outlook on stocks because a full breakdown of u.s./china relations would justify equities trading drastically lower.

>> when peter navarro was on last, i asked becky to ask him about taiwan he was not willing to go there that's the hottest of hot buttons. this 26 million people, they only had 7 deaths of covid they got some things down. yeah, china's no side show we have the best stocks, they have been the technology stocks. yes, facebook has no china, alphabet has no china, netflix has no china china has not let these companies in, they have mimicking companies. china is big the president is taking us to a 1947 soviet versus the united states posture it's about containing china, containing china militarily. we've been cold warriors again to ignore that is to ignore history. at the time in 1947, russia was much more powerful than they are now. but yeah, here we are. back in an era where waiting for

the berlin wall, the equivalent -- we have a wall that china built but yeah, i'm concerned. i'm concerned about unemployment at the same time having a big war with china i've been the least on air favorite of the prc. i don't know you have to solve the employment problem first. a lot of people looking for jobs >> having a deepened economic war with china certainly not going to do that the unexpected consequences of a pandemic, i think we will continue to see. if i told you at the beginning of this that wearing facings would face masks would be a part season issue and that it would deepen the hostility between china and the u.s., we'll hear from jay powell later this morning in terms of the economic consequences that he continues to monitor as a result of the pandemic china has to be at the top, i

would think, of at least risks >> yesterday the market was flying it looked like a great day as we got closer to the dead lynn whdeadline when the president said it would be big, when we're like what if he does something huge and china says apple, we're down you're doing huawei, we're doing this or that you mentioned the mask this is important. people have to read the costco conference call. they decided to go all mask. if you come in, you have to have a mask if you work there, you have to have a mask. it's protection for the associates and customers they think most people will want to shop at a place with wide aisles and masks because they don't want to get sick when they go to the store. i think costco is one of the most intelligent companies in the word that's where this is going they only have one store in china but they can put up many

people have to recognize the 52 million people who are club members want to see masks on people it's as divisive as i've seen. just divisive. i wear a mask. >> i'm aware you wear a mask as i did when i was in home depot the other day. one gentleman was not, which was interesting. >> i don't know that home depot would be happy with that >> yeah. i was surprised but everyone else was wearing masks in this part of the country, that's more the rule than the exception. parts of the country that have reopened and have not seen a

significant amount of the virus, carl, are taking a different approach that's sort of where we're looking to see how things go as well as our economies come back to almost sort of full levels, not quite. >> yeah putting the reopening headlines in perspective we had disney. u.s. virgin islands will start reopening for tourism. southwest will start renewing flights to mexico. english premier league in europe apple stores texas governor abbott saying professional sports spectators could return talking about dallas cowboy stadium, maybe 25% capacity, but david's right. the states that have had loosening of restrictions just by about any measure have not seen the dramatic escalation in cases that we feared >> we have a stock, draftkings had them on last week. draft kings is a measure of how much betting there can be.

you need sports to bet on. as you see that stock go up, that's a lead indicator that we'll have regular seasons but the big issue is what happens to the fans and who -- we could have a, b, c classes are they going to give us our money back i already paid for my season tickets for the eagles draft kings is a sign of reopening. there's two countries right now. a part of the country where i can't have a table and chair in front of my bar. then another part of the country where they're packed and this is just -- i cannot believe the parts of the country, how different they are. but we all -- there are many people who were skeptical if they open things up, other than wisconsin i'm not seeing a noticeable tick up we have to be aware of that. but also be aware that 48% of the people who died were in nursing homes. >> yeah. here's a hopeful thought

it's possible that if all goes well we could have basketball, baseball, hockey and football all still going at the same time >> if you're a knicks fan, a jets fan and a mets fan, why is that hope for you? what's hopeful >> if you're a mets fan -- >> was there much hope in the first place? >> if you're a jets fan, the season hasn't started net. if you're a knicks fan, understood understood no hope. you may not have hope for years. >> i like to give you a head's up you know >> okay. yeah >> okay. let's take a quick break here. we have to get our way through williams-sonoma, jim mentioned costco, nordstrom and jerome powell coming up with allen

blinder, that's at 11:00 a.m. eastern time stay tuned for that. 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. thanks for sharing your savage moves, and especially your awkward ones. thanks for sharing your cute kids. and your adorable pets. now it's our turn to share... with the geico giveback. a 15% credit on car and motorcycle policies

for both current and new customers. and because we're committed for the long haul, the credit lasts your full policy term. so thanks again. one good share deserves another.

the face of retail fundamentally changing in a discontinue woous manner and mo

more and more to online kind of e-commerce, really accelerating two to five years from the secular trend it was already on. >> that is dan schulman on "mad money" last night talking about the fundamental shift in e-commerce jim, it's being reflected in names like williams-sonoma today. >> what a great quarter. you always try to think where did they get those home offices that look so nice? it turns out a lot of them are not going to williams-sonoma but williamssonoma.com why? all the stores were closed for half the quarter she still delivered. pottery barn children did quite well that's just a person who is a visionary. she has seen a lot of this coming but it accelerated because of covid-19. ulta, they have got both terrific club and a dotcom it's saving them

nordstrom talking much more about their dotcom that is going to keep a bid underneath that stock. if you don't have one. if you're not omni channel you're off your game paypal fantastic dan schulman had his best day ever may 1st we're in a weird moment where i'm surrounded by companies with a great omni channel or bad. the one that is most positive that no one talks about is costco, which had very good numbers but people are concerned that they spent so much money on converting their place to a less -- to a place that defends against covid. i like costco here some of these retailers are so clever you have to hand it to them. they adjusted quickly. >> yeah. there is a thought that companies are making investments now or doing those things, even

bigger things if they're in an advantage position they have the cover to do it they can go do the big investments that they might have held off on for fear that people were too -- that investors were focused on every penny of eps. this gives them more leeway. the pandemic, the willingness of investors to take whatever they get. >> this is a great point salesforcec benioff, he was tele this is a moment he said we'll spend an crush everybody. this is our chance because there's such disarray. a lot of people are disappointed in the guidance he gave. he took a billion off what he thought he would make. marc is not going to charge customers as much as he would have, this is a share take moment and he's taking no

prisoners. david, you have to look into the at&t deal. he's saying at&t is being run by touch point, they're integrating and it's all salesforce. they won't clean up initially. i like someone who says this is 2008/09, and it is my chance to take advantage of the disarray of everybody else but i won't make as much money the next quarter. that's intelligent it will hurt him because of the short-termism on wall treat. th street. they want it now if you were close to it, carl asked me yesterday, he said they're not that good. they're forbearing paypal is forbearing, too. >> as you pointed out, the company did guide what is thought to be conservatively for the back end of the year

let's listen >> i am actually incredibly optimistic and encouraged because my belief very strongly is that if you can navigate through the last 90 days, you can navigate through anything. this was a quarter of trust. this is where we had our values on our sleeve. >> values on our sleeve. >> there is a concern or question as to do they see a second wave? is that part of their back end concern? is that why they guided so conservatively >> mark is convinced unless you do contact trace, unless you have a plan for the reawakening that includes the notion that we could have a "w" recovery, that the disease is not going to go away, you're going to get hurt he has said -- by the way, rhode island's governor was integral in setting this up with marc there are a lot of states going

his way. i think that he is becoming a -- a closet government about how to reopen work.com, if people want to know more about that. again, it's a long-term thing. david, long-term, it's out of fashion. i like it. >> we'll take another quick break here a lot to get to as we await powell at 11:00 a.m. we'll talk about month end here. watch for signs of reallocation. back in a minute usaa was made for right now. and right now, is a time for action. so, for a second time we're giving members a credit on their auto insurance. because it's the right thing to do. we're also giving payment relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. right now is the time to take care of what matters most.

like we've done together, so many times before. discover all the ways we're helping members at usaa.com/coronavirus discover all the ways we're helping members at mercedes-benz, nothing service will do.-class that's why we're expanding your range of choices. many dealers now offer optional pick-up & delivery and at-home maintenance, as well as online shopping with home delivery and special finance arrangements. so, whether you visit your local dealer or prefer the comfort of home you can count on the very highest level of service. get 0% apr financing up to 36 months on most models, and 90-day first-payment deferral on any model. truly transformative sleep. so, no more tossing and turning. because only tempur-pedic adapts

and responds to your body... ...so you get deep, uninterrupted sleep. during the tempur-pedic summer of sleep, all tempur-pedic mattresses are on sale! coming off the s&p's first decline in four sessions futures are weak again on this final day of the month as we await powell and the president on china and maybe more. we'rba ia mee ckn mont.

more important than ever.togeths

at&t is committed to keeping you connected. so you can keep your patients cared for. your customers served. your students inspired. and your employees closer than ever. our network is resilient. our people are strong. our job is to keep your business connected . it's what we've always done. it's what we'll always do. birthdays aren't cancelled. hope isn't quarantined. first words aren't delayed. caring isn't postponed. courage isn't on hold. and love hasn't stopped. u.s. bank thanks you for keeping all of our spirits strong. we've donated millions to those in need and are always here for our customers and employees.

welcome back let's get in a mad dash. not a good morning for canopy growth shares. >> no, there's been a rally in the cannabis stocks. a lot of them are keying off of

this one best capitalized and it reported a number that was sub optimal, including revenues down 13%, primarily driven by lower canadian recreational revenue in other words, a lack of demand they have a ready to drink beverage that sounds intriguing, but it's not selling well. i find this is the one that everyone keys off of so you're going to see the whole group come down. all i can tell you is that this stock ran into the quarter and no one could figure out why other than the fact they felt maybe constellation, which owns a big piece of it and the ceo of canopy comes from constellation, there was something big happening. there was, a slowing in demand i think it took some people by surprise >> jim, it just occurs to me, given how many states will be under significant pressure in terms of their budgets because

of short falls and revenues, any chance we get a wave of legalization in the states >> yeah. >> not to mention legalization of gambling too? anything that would raise revenues now you have to assume states are looking at. >> totally on board. think it can happen. there are profitable companies in this country already. yes. i think it's -- i would put this there, there's enough illegal trade where you want to get the taxes. soda taxes, plastic bag taxes, anything the shortfalls will be humongous. speaker pelosi is worried about the states the republicans want to hold off. but that is going to make it so it's a state scramble. some states like illinois have been good at profiting, massachusetts not so good. you have to have your game on.

have you have to have stores ready and not regulated by municipalities because they get in the way david? >> i thought carl might chime in there. >> i was thinking exactly what us were thinking, especially given some of the comments from governor cuomo new york had some close brushes with getting this past the state legislature, same with new jersey maybe this is the thing that gets that over the hill. if you're cuomo, you are looking for any opportunity. new york state and new york city will be enormous, and some other states, too, some red states, not pure blue. what is the likelihood that either the 3 trillion bill comes out of the house and advances in the senate or you get something that does aid the states

you have to concern yourself with the possibility of significant municipal layoffs as the states struggle to balance their budgets. >> it's all in secretary mnuchin's plate. he seems to have indicated no real interest now. that's the biggest worry that's where the "v" falls through the floor. it's go the to happen. there's numbers that are unfathomable here. we're tweeting >> there's the opening bell. we'll watch closely here on the broad market, what a run we've had in the month of may. now you're at the end of the month. to what degree will we watchllig into fixed income? >> there's some great opportunities in fixed income. you can get some with the fed backing them up. it's really attractive a lot of people are switching because the income is so great i'm glad you mentioned that. there's tremendous opportunities. then the recession stocks have

decent yields. how far can you take carnival cruise you already have a double. royal caribbean. some of these stocks have doubled, doubled, doubled. we start thinking wow, how much is the consumer really ready to book a cruise in near-term yes, next year the prices will be unbelievable. i saw some prices on norwegian cruise that would intrigue david. we could go to alaska together, we could be in the haven section, that beautiful solarium have you seen that >> no. if i get those antibodies, first thing i'm doing is going to italy. >> you can fly to milan. take the arab emirates flight at 10:00 tonight. you'll be there tomorrow morning

at 9:30. you'll have the time of your lif life >> i'm waiting >> you have herd immunity in that airport >> carl, you mentioned or jim mentioned, marco from jpmorgan who surprisingly, because he has not been particularly bearish, put out a note getting attention and david kostin as well mentions the complete breakdown of supply chains, international trade primarily between u.s. and china as a real risk for taking equities lower and then david kostin, who i know, carl, you follow closely as well also out with less than positive comments this morning, saying how we've reached his targets for year end >> that's true though on the flip side this week, guys, you had bank of

america looking at positioning, jim, which sometimes is the only thing people are curious about and they point out asset managers are not very long, leverage funds are the biggest net short s&p since 2016 and if we get any kind of -- dry powder in money markets. if you get a summer rally, the catch up trade will be something to work. >> if secretary mnuchin were to call on this line right now which is highly unlikely, saying we have to come back with a stek par second part then i think the move is justified. we need to keep money in peoples mock k pockets. zebra technologies came on and said my business is good, and then went up 80 straight points. he is moving out of china going to malaysia, vietnam andtrying to diversify hp was not able to do that and got nailed

dell took a huge amount of share away from hp cisco did manage their supply chain. supply chain is what you have to ask. david always wants to ask capex. the next thing you ask is how much have you moved out of china? those who moved a lot out of china are having better-than-expected numbers because they're avoiding the tariffs. >> we didn't talk hpq yesterday after you had that ceo on the night before it was down sharply. not doing much of anything today. do you think part of it was share taking from dell speaking of dell, the ceo will join us later. >> michael dell crushed it, vmware crushed it. the dell quarter, a lot part of the dell was not that great. what mattered is they went all

in office, the home office, and they owned it. it was michael dell being his competitive best that's what we know about michael. michael is a nice man. but when he decides to take share, he kills it just magnificent he took it out of a lot of different people that dell deserves to trade like it is. good quarter i urge people to look at that quarter. when i say urge people to look at it, when you're over the weekend, when you're trying to figure out what to do saturday night because there's nothing to do, the dell quarter, the costco quarter, these are monumental. there's nothing to do during the pandemic no, there is there's some -- the ulta conference call. i recommend that to you on saturday >> i can't wait. carl, i don't know about you i've been keeping those conference call transcripts aside so i can enjoy them on saturday i don't want to get too them too

quickly. i want to look forward to it >> it's better than netflix. you know what? it goes on and on and on in the end they don't get -- the "narcos" guys win in these conference calls >> who won in the ulta conference call? >> david, their omni channel was fabulous it saved them. omni channel is when you can shop pretty much anywhere. i know you don't -- how do you buy those clothes? >> i don't do anything i don't. they just get delivered to me. >> tjx has an okay online. burlington will come back with a vengeance. the dollar tree -- you guys had philbin. david, is your dollar tree as good as mine i got these -- these were part of a package you can get five for $5!

if you don't like them -- big deal try doing that with ray-bans >> i'm not going to. >> guys, we have been tracking this performance-based payout for elon musk at tesla it does seem now according to the proxy statement that elon that earned the first tranche, this is for options that would allow for the purchase of 1.7 million shares at 350, worth just shy of 800 million. so, this is for keeping the company's market cap at 100 billion or more on a 30-day and six-month moving average >> stock is up 93% for the year. it's incredible, the shorts were coming in saying, jimmy chill, have you seen there's actually -- i think there's discounts. there's discounts. i was saying, oh, stop bothering

me it's elon musk it's technology. don't hit me with these discounts. and obviously others agree it continues to go higher. only 11% short would have thought there was more short particularly because, as you said, there are maximum short positions for a lot of companies. this is a china comeback story people have to start thinking of it like that everyone has noted in their quarters that china has been the star tesla, it's going to be the star i went to a lamborghini factor i dropped a tic tac, you can eat it off the floor tesla will crush that high-end market he deserves everything we have to watch the launch this weekend, right >> is there any risk that he -- elon is asked to choose in terms of allegiance between the united states and china >> wow >> whoo. >> geez.

i don't know wow. i guess the president obviously could tweet that would that -- dorsey wouldn't have a response if he tweeted that that's a great one that's a puzzle. it's like a jumble >> yeah. i have to work on that >> carl, i think at this point we don't know when the president is expected to speak today as we have been led to believe with the press conference on china. you mentioned the one-word tweet, china but that's all we got so far there's going to be a lot of focus on that when he speaks because of the tone, tenor of it will be important in terms of trying to gauge how bad things are. >> we don't know when the press conference is. it's up in the air i think a lot of people trying to possession short ahead of it so when he says whatever he is

going to say i continue to think it's the major story other than the fact that one out of every four people are unemployed in the country. we don't want a replay of a hoover economics picture you never want to take your cue from hoover's economic game plan suboptimal >> personal income was up a shocking amount. one off is what many are saying. >> yeah. i think through santelli and ste steve, it threw them for a loop. 89.6 month-on-month jump from the governor spending down 13.6 and we saw consumption yesterday. all your concerns about the

consumer are well founded. i'm sure powell will be asked about that i don't know if you saw this "times" story that google is rescinding offers to several thousand who agreed to work there as temporary or contract workers. so we tend to pay a lot of attention to google's actions given their visibility and familiarity with things like pandemics, things that go viral. >> this is the opposite of what some of the -- marc benioff has been pledging to keep everybody. a lot of this is temporary the rescinding is something we don't talk enough about. i think there's going to it be a wave of unemployed when school is over. typically they would get jobs, it reminds me that you need ccc, conservation corp. people to plant trees. we have to start thinking new deal here. the new deal playbook has to be dusted off not the twitter playbook but the new deal playbook. it's time to go over what worked with fdr

i know that sounds dire. can we accept the fact that it's unacceptable for a great nation to have 1 in 4 unemployed? this is a great nation >> let's hope that that number changes for the better in the coming quarters. quick break here a few minutes into the trade on this final day of may. more with powell on deck in about an hour and 20 minutes don't go away. ever since we've gone mobile on the now platform, something's gotten into the office. i hear you.

feels like there's no barriers between departments now. servicenow. the smarter way to workflow. it's a thirteen-hour flight, tfifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya.

ah, they're getting so smart. choose the app that fits your investing style. ♪ i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424.

another big day of data, we'll get the chicago pmi right now. let's get to rick santelli >> we're expecting our main read on chicago pmi last week -- excuse me, last month, 35.4, the weakest since '09. this one lower than that 32.3 we are expecting the number higher this is definitely nothing good to look at when was the last time we were at these levels? you have to go back to march of '09. we're covering that whole thing. to give you context, 20.7 from june of '80 was the all-time low on the series going back to 1967 but we'll continue to watch the pmis and ultimately university of michigan coming up to see if we turned the corner

carl, jim, david, back to you. >> rick, we'll see you in a few moments. let's get over to meg tirrell who has a special guest. good morning, meg. >> good morning, carl. the world's largest cancer research conference kicks off today, and this year it is virtual. we're joined by bristol-myers squibb ceo, giovanni caforio thank you for being with us. it's a different format for the meeting this year. all of the information just being posted online. help us sort through, from your perspective, what is the most important update from bristol-myers at this meeting? >> meg, thanks for having me it is an important conference. it is my 15th, and the first time we have had a virtual meeting. it's really important to have this meeting we know that the oncology community has been impacted significantly by the covid pandemic we know that over 50% of

patients have challenges accessing health care today. so bringing together scientists and researchers to continue to advance the science that patients need at this time is really important for us, it's an important meeting because we're showing the breadth and depth of our pipeline we're presenting a lot of really exciting data. immuno-oncology with lung cancer, cell therapy, an area where are planning on being the leader we have important data presentations there. and then a lot about the future of our pipeline and early releases for potential advancements >> i want to ask you about the lung cancer space. just a few days ago the fda approved your drug, optivo with limited chemotherapy in a

certain setting with small cell lung cancer. how would you say the data positioned you in the race against merck's keytruda >> first of all, what's important to remember is patients with lung cancer need new treatment options. there's still a need in a competitive space, but physicians are looking for new options and patients need new treatment options. i'm pleased with the fact we received two approvals in less than two weeks remember that this combination has already shown the ability to prolong survival in four tumor types, and now in first-line lung cancer. we'll present the data and the issue here is really the opportunity to provide long-term survival to patients what we are hearing is that there are many patients that want a chemotherapy-free option which is possible, and now the opportunity of limited cycles of

chemotherapy i think we have an important role to play in lung cancer. >> i want to talk about eliquis. a few years ago when my father was dying, the doctor said we have this new drug, eliquis, it's so much better than others, we think it could give your father a few more years. i keep seeing it i never hear about how important this drug is could you have 100% of this market at one point? >> it's one of our most important medicines. we are already the leader globally in terms of anti-coagulants. there's a significant opportunity to continue to grow. some patients are still receiving warfarin and many

patients have not been treated or diagnosed yet eliquis is already the leading medicine in the world in this field. full page ad i've been seeing bristol previous to you made some claims including full page ads and also tv ads that brought some criticism as overstating what it could do when i see the full page ads, i get concerned some people will get too much hope. they do you do those why are they necessary >> first, let me say we're making great progress. it was ten years ago we presented the very first data on oncology, and we were discussing increasing survival by a few

months ten years later we're discussing the potential for long-term survival we are very focussed on educating patients on the potential options available to them we believe it is important, and clearly, we work with physicians and patient advocacy programs to make sure the value of our medicines are understood you will notice in our ads, we always thank patients and researchers thapar tis pate in our research, and we believe it's important to continue to focus on education >> doctor, it's david faber. my question is specific to your plans to resubmit an application for a drug after the fda filed a refusal to file letter can you update us? it's been a couple weeks since you last commented on that do you still expect you'll

resubmit by the end of july at the latest >> yes let me first say i am confident in the clinical profile of the drug, and we'll present updating data which shows the transformative potential of the medicine the fda asked for more information. we don't need to conduct any new trial to address the information. we are working on submitting no later than july, and we're very much on track. >> and you are actually, i think, your chief medical officer indicated the issues had to do with chemistry can you give us a sense as to what the fda's problem was >> it's really about the level of information required by the fda. it has to do with parts of the application. it has to do with the

manufacturing process. it is not about clinical data. and it really is about the level of detail that the fda wants us to include in the submission so it's data we have we are working on it, and we're going to be resubmitting before the end of july. >> i want to ask about the situation with covid-19. one of the things the pandemic has really exposed is the reliance of the supply chain for medicines on china and india now there is such a push in the united states to have medicines sourced and made in america. how would this effect bristol meyers is it possible to make your drugs in america in a relatively short period of time and change the supply chains? >> it's critical to be thoughtful about this.

from our perspective, our supply chain is in the united states and europe, and throughout the pandemic we've actually never really stopped working we've continued to deliver medicines to patients without disrupti disruption from our perspective, we've worked really well through the challenges of the pandemic we've continued to supply medicines with no interruption >> i want to -- every time you're on, i ask about cel gene. it's such an exciting company. we only end up talking about 6% price increase, i know, but i'm more interested in the ancillaries. >> you know, the performance continues to be very strong. we had a great first quarter as a company and it was part of the growth of our business

we received recently a new indication, approval for a new indication in lymphoma it's the backbone of therapy in multiple milo ma we're working on developing the next generation of medicines that will continue to improve the outcomes for patients. it's an important part of our company. and things are going well. they're going well across the board with celgene and it's progressing very well i'm even more optimistic about our company than i was before we closed, and i've seen rapid progress of integration over the last few weeks >> i want to as my last question, i want to bring it back to the industry's role in this pandemic and, of course,

you being the chairman of the pharma industry group. there is, of course, a major anti-vaccine push. how is the industry approaching that as a risk to if it does bring a successful vaccine forward, this pandemic, to people taking it >> we are continuing on focusing on advancing science the level of progress i'm seeing across the industry working with the fda, nih, is absolutely unprecedented. we are stepping out to the challenge of solving this health crisis for us as a company that's 100% focussed on innovation and transformative medicines. we're continuing to work on advancing our pipeline, which is the strongest it's ever been the company's really well positioned today it's well positioned for the future i think we have a real opportunity as a leader in health care to continue to play an important role going forward.

>> all right thank you for joining us today >> thank you meg, thank you for that. we'll take a quick break here. market holding 3025. but financials, energy, industrials all lag with the declines of more than 1% ter my , i wondered. could another come around the corner. or could it play out differently? i wanted to help protect myself. my doctor recommended eliquis. eliquis is proven to treat and help prevent another dvt or pe blood clot. almost 98% of patients on eliquis didn't experience another. and eliquis has significantly less major bleeding than the standard treatment. eliquis is fda-approved and has both. don't stop eliquis unless your doctor tells you to. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. if you had a spinal injection while on eliquis call your doctor right away if you have tingling numbness or muscle weakness.

while taking eliquis, you may bruise more easily. and it may take longer than usual for bleeding to stop. seek immediate medical care for sudden signs of bleeding like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planed medical or dental procedures. what's around the corner could be your moment. ask your doctor about eliquis. but when allergies and congestion strike, take allegra-d... a non-drowsy antihistamine plus a powerful decongestant. so you can always say "yes" to putting your true colors on display. say "yes" to allegra-d.

one more "mad money" before we get to recharge >> we have fastly. we have elf. there's a proxy fight i'm sure you're following and zscaler they help people to work at home these are all companies that are

fast growers or in the news. it's -- these weeks are amazing. >> yeah. this one was only four days. certainly felt like more than that, jim. thanks good weekend we'll see you monday and tonight. >> conference calls are every bit as good as netflix every bit as good. >> yes jim, we'll see you tonight welcome back to "squawk on the street." i'm carl quintanilla with david faber, sara eisen coming to you live from separate locations big day for data consumer sentiment right now let's get to rick. >> yes university of michigan, our may final read 73.7 replaces it with 72.3 72.3 of course, these numbers are basically the weakest going back to 2011, and let's go through some of the internals. current conditions, move from 83 to 8 2.3 on expectations, 67.7, down to

65.9 on the inflation outlooks, 3.2% on the one-year. five to ten-year, 5.2% they're hotter than the last looks. it makes me think a second that ultimately it seems as though deflation has been the talk. but there's obviously a whiff of inflation in various areas of the economy and potentially down the road something to pay attention to. sara back to you. the@taking on social media a day after signing the executive order with twitter slapping a warning label on one of his tweets we have more >> reporter: good morning. that battle between trump and twitter escalated overnight and into the morning hours after the executive order was signed by the president. twitter took action flagging another one of the president's

tweets this one about george floyd and the protests in minneapolis. twitter hid the tweet saying the president's comments violated the rules on glorifying violence but it's in the public interest to remain on the platform though with limited visibility. this morning the president hit back at twitter claiming it has a double standard and calling for tech companies to be strict on their special liability protections. he wrote, twitter is going nothing at all about the lies and propaganda being put out by china or the radical left democratic party they've targeted the president of the united states and conservatives. section 230 should be revoked by congress until then, it will be regulated. in addition to asking the fcc to write new rules around content moderation that executive order also directs the doj to draft proposed legislation to give to congress also the white house says it's looking into potential litigation but while all of that is going on, trump and twitter are still engaged in a game of whack a

mole the official white house twitter account reposted that flagged tweet from the president, clearly they were daring twitter to make yet another move and carl, the company has now hidden that tweet as well back over to you >> truly remarkable, elon. probably the first time we've seen anything like that. we'll talk about it before ylan, thank you. most facebook and google were quick to respond to the executive order from yesterday facebook said it will restrict more speech online, not less google saying the move would hurt america's economy and the global leadership on internet freedom. we are joined by an analyst. heather, happy friday. it's great to see you again. >> great to see you, carl. thank you. it's hard to have any discussion without directly addressing the showdown between dorsey and the

president. how much of this is truly profound for your coverage, if much >> well, look, it is always something that's interesting to watch. you're right i don't have coverage of twitter. it would be my colleague but in regard to facebook and google, and i think you mentioned some of the commentary they had yesterday, i mean, the real thing comes down to do we want the -- who should be the person that's the arbiter of what gets said on the internet government, the companies. mark zuckerberg has been clear about the approach he'd like to see taken. but it's going to come down to when does this become a priority or does it become a priority for congress to potentially act here and decide whether or not we should get treated as publishers and there could obviously be repercussions from that. it's also a question of then does it impact how people are spending their ad dollars? that's what we care about mostly >> right so let's take two of those

things the policy response from either the courts or congress what's your playbook or expectations on that front and then what do advertisers think? to what degree does this become a stigma to have your ads placed against the content that gets more controversial >> so those are great questions. we have a political strategist at goldman sachs we rely on him to give us that input on what the potential policy ramifications are in regard to how advertisers feel about this, every conversation we've had, and i've heard david talking to jim just before about omnichannel and being able to basically purchase, interact with your customers anywhere, that's what the advertisers seem more focussed on right now than anything on the policy side. in fact, we see what's going on as really acceleratiing shift from traditional media we see this happening even

faster for some of the reasons you talked about earlier >> heather, it's david what are your expectations as to how this is going to evolve? i think a lot of people think it could end up in the courts obviously, the executive order somewhat unclear in terms of the path here. what are you telling clients when they ask you what to think about what to expect >> so we typically would rely since that's not my area of expertise on the policy side, rely on outside experts or our internal political experts on this area. and look, this is always a fear. even experts 12, 18 months ago, there was less concern the companies would get broken up, but the big unknown was whether or not they could get regulated as publishers and be held liable i think it's not something that clients are asking about

in increasing amounts. this week, even in light of the executive order that you just mentioned, but i do think something, it is something that we're going to have to pay a lot of attention to, and i think it's -- look, it's one of the things that's been impacting the multiples of the stocks. whether it's doj or ftc concerns where now it's going to be how this plays out so i think it's a great question it impacts the multiples hard to say. >> right it would seem to be. let me ask one that's more based on the news involving alphabet since we have you. the idea they're not going to be hiring some people they thought they said on the conference call they were cutting cap ex it seemed to have more to do with office space or buildings investors like to see the efficiencies what's your take >> so i would say when i listen to the conference call and the cfo comments, i felt like i was

listening back into the conference calls we might have been on with microsoft during the global financial crisis back in '08 and '09 the similarity is that when i listen to what they were saying, it sounded like they were focussed on efficiency and that they were going to try to learn from this and become a more efficient company and that means something people have worried about at alphabet has been margins people might not think of microsoft this way now, but if you go to the global financial crisis, there was a period where microsoft, people would say they were spending maybe too aggressively and going after some of the moon shot bets that weren't going to pay off they got a lot of discipline coming out of that they've take than forward. that's the sense that i got listening to that alphabet conference call. that's what we're on the cusp of >> to wrap it up, are you putting view on stocks like

facebook or google in light of regulation are you changing your view, given the increased calls on both sides of the aisle for regulation increased chatter around section 230 does it influence what you're telling investors to do with the stock? >> it doesn't, because it's so -- first and foremost, i would say both companies have been living under these regulatory overhangs since really cambridge analytica if you go back to facebook when this started to become even louder for them. there's been concerns over what type of sanctions they could put on them. further descent decrees or if they were trying to break them up those have been overhangs. this has been lingering. it's back to the forefront there's probably a little less talk of people calling in talking about the potential for breakups so i would say they're kind of all ongoing themes that have

impacted the multiples when you see how that's impacted how we value the stocks, it's resorted into lower multiples. at the same time, again, they're the two engines for digital commerce that the global economy has. >> on that front, you've done a lot of good work on not just the -- how e-commerce plays into this how also how the workplace is getting more distributed. we're living examples of that even as we speak and sales force is a good way to put it through a lens. how much opportunity is there while at the same time allowing clients to defer payments because they're under pressure >> it's the right thing to do. you had marc benioff mention it last night these companies are doing what they should be doing when you sign up for a sales force or workday and other staff businesses like this, you're

becoming a customer for the next 15 to 20 years and if you have to take less payment up front for one year potentially, but you're going to make that up over the next 14 or 19 years, it's the absolute tradeoff i think making sure people stand by their customers and employees will show up and whether it's better employee satisfaction or markets where there's a fierce demand or talent or ultimately in these companies thinking about their lifetime values and customers. it's the right thing to do at one point we will all get through this for now, i think they're taking the appropriate steps. >> yeah. i mean, it's remarkable how much change just ten weeks and our worlds are turned upside down a lot of the stocks reflect that heather, thanks. it's great to talk to you. >> thank you have a great weekend you too. still to come, it is the last trading day of the month

how should you be positioning your portfolio amid the volatility entering the month of june and later, powell in a web cast. we'll take you there live. big show still ahead don't go anywhere. a slice. a piece. a portion. a chunk. with dollar-based trading you can spend what you want, even on just a slice of a share.

the final trading day in the month of may stocks are under pressure following yesterday's losses let's bring in jpmorgan's chair of global research and citi

private bank's global chief investment strategist. good morning to both of you. steven, we have jay powell in the next hour. we have an anticipated press conference from president trump as it relates to china what do you think investors are most focussed on after this nice runup we've seen >> i think we probably will get more news out of president trump than jay powell. powell is doing everything possible right now for the economy, and what we're thinking about some of the policy options they're talking of, these are hypotheticals. and eventually, after you've taken a lot of steps, you run out of things to say, i think that's not going to be a market driver this is going to be an excuse for profit taking. there's going to be some new twist here it will probably come out of the risk of an escalation of u.s., china conflict >> is it surprising, joyce, that largely investors have brushed off some of the escalating

tensions between the u.s. and china up to this point we're heading for our second week in a row of gains with more than 35% off the march lows. is that the right reaction here? >> i think the u.s./china story is a long story we're going to be watching for a long time through the cycle. so i think this is one that's just beginning to heat up. you've had just numerous actions that have taken place over the past couple weeks. the reparation bills or the comments from pompeo on his assessment of hong kong and questioning whether it remains an autonomous region we've also had just the on the u.s. content side, huawei. we've had more questions as well on delisting of companies. so this is something where i think the market probably is not pricing in the premium right now because it's been focussed on the pmi numbers and the manufacturing numbers. and the fact that some of the first quarter earnings actually did surprise on the up side for about a third of the companies >> yeah. it feels like the reopening talk

has really been front and center joyce, what's the worst case scenario here for investors as it relates to hong kong and some of the other risks you outlined between the u.s. and china >> well, i think that right now what we're seeing is the concerns about transparency on covid-19 have overtaken the phase one trade concerns that had been in focus in 2019. first, i think phase one, it is going to be difficult to meet the targets. i think you'll see just more noise not just from the white house, but you see it in congress you see it in public opinion polls as well on where the u.s./china relationship is going. and china has been i think careful right now. i mean, what we've seen in the past is they have often moved the currency in response or done something more retaliatory they've been pretty careful to leave the tech and financial arena out of this right now. i think that's what the market is waiting on, is this going to begin to hurt some of the financial in tech arena or is it

going to stay more focussed on the democracy and the human rights issues and the phase one trade zbreemagreement? >> that's an interesting point, joyce. >> i'm just thinking about this. joyce mentioned a long run issue here and if you think about where both economies are right now, co-vid has collapsed the trade sectors of both economies. so if you think about a resumption of tariffs, for example, what impact will that have when both of the economies at the moment, again, have really beaten down trade sectors and the types of steps that have been taken so far, at least, again, are relatively modest in terms of the scale of the economic downturn and the likely rebound we're getting in both economies? and i don't think you can ignore the fact that in china, for example, you've seen auto sales at new highs for the year. highest since 2019 in the u.s., we're seeing driving data that suggests we're

going in our view to have a 30% rebound in u.s. gdp for the third quarter following a 40% drop the scale of the shutdowns and reopenings are very big factors. all of this, again, might dent confidence it might be an excuse for profit taking but these steps are nothing compared to what's divided up markets around co-vid around the world >> on the geo politics i'm curious the other developed economies when they're watching the back and forth take germany we had a joint statement this morning they're investing 2 billion in chinese electric vehicle makers is the sense that they're going to side with us or china or try to split the bet >> well, what we've seen surveys with our clients, 10% have said

we're thinking about moving our supply chain but 10% to 20% say they're expanding their businesses in china. we're in an integrated global economy. some of the rhetoric isn't going to weigh out, but it could weigh on market sentiment. that's not priced at this stage. the china growth outlook is very important to emerging markets in particular so our estimate is that every 1 percentage point china's growth drops takes about half a percent off the global growth. it's nearly 1 to 1 for some of the emerging markets, a commodity exporter this can have broad reaching effects beyond trying to as well given how this dialogue goes, but the focus has been very much on the may and the june manufacturing numbers, the fact that the earnings were not as feared as poor as some feared in

the u.s., but i do think what you have is as you go into the fourth quarter and the end of the year, we're going to have more of a discussion as the elections come up on u.s./china and also the drag that has come from providing this much fiscal stimulus and what the consequences are of building up the debt burden as well. right now the focus is on earnings it is on the pmi manufacturing numbers. it's on the reopening, but i think you're going to have these longer-term issues column toward the end of the year. >> finally, steven, your expectation of a q3 bounce j is it highly depending on getting a fifth stimulus package out of congress >> i don't think the q 3 is. i think we're longer term the recovery can be over the course of the rest of the year into 2021 depends on it and things like the solvency of

small businesses, how long the economy shuts down will have a big effect again, it could magnify it in both directions. we think there will be as much money as needed on the fiscal side for the u.s and, again, we will not run out of emergency unemployment insurance. they will go back and pay that again as needed. but i think, again, the bounceback effects we have to understand if you wanted to have a record decline in retail sales, shut down the stores if you want it to come back, you open them. that people haven't realized that this has been an engineered collapse in the economy to the extent that we have. there are lingering negative effects. real estate, transport, tourism, southern europe is going to have an extremely difficult time getting international tourists before there's a vaccine, but there's still a very big bounceback effect. there's no other way we had the largest employment decline by ten times the magnitude of any in history if not for the

shutdowns. so that part of this, i think is baked in the cake we're coming back >> yeah. certainly market seems to see that dynamic and i'm sure powell will be asked about it in about 40 minutes steve and joyce, always good to get your takes thank you very much. >> thank you speaking of which, we'll take a break here and we are awaiting the fed chair with allen blinder in a virtual discussion on covid-19, the economy. their tool box and a host of other issues coming up at the top of the hour. at leaf blowers.

you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today.

welcome back i'm sue herera in minneapolis a police precinct and other building were set on fire as protests escalated over the death of george floyd while in police custody. the mayor condemned the violent protests and looting >> there is a lot of pain and anger right now in our city. i understand that. our entire city recognizes that. what we have seen over the past several hours and the past couple of nights in terms of looting is unacceptable. >> in louisville, at least seven people were shot overnight protests are ongoing over the shooting of a black woman by three white police officers in march. you can see protesters attacking an ambulance and rocking it back and forth. and in russia, they have now reported 232 new deaths from covid-19 it is the highest daily death

toll since that pandemic began you can go to cnbc.com for the latest on the coronavirus hot spots around the world you are up to date david, back to you thank you, sue well, it has been called part of the reopening trade. i'm talking about zillow shares of which aren't doing much this morning. we're going to talk to the company's ceo richard barton, coming up. this moment. this moment right now... this is our commencement. no, we'll not get a diploma or a degree of any kind. but we are entering a new chapter in our lives. our confidence is shaken; our hearts cracked. the kind of a crack that comes from the loss of a job; from life plans falling apart. we didn't ask for it... but we are rising to meet it. and how far we've come isn't even close to how far we can go.

we just have to remember how patient we were... how strong we can be. (how strong you can be.) and remember this; there's a crack in everything for a reason. how else can the light get in? ♪ tomorrow starts today.

mortgage rates hovering near record lows. is it too late for people to take advantage we have the story. >> good morning. definitely not too late. probably also a little easier now that be it was a month ago the mortgage market is a big part of what is driving this faster than expected recovery in housing. record low rates give buyers more purchasing power. that's especially important because the supply of homes is also at a record low and that's

keeping home prices high buyers may be rushing in now to take advantage of rates while they're this low it's only really in the past month that the mortgage market has recovered itself rates had popped up in march when the pandemic hit, they then began falling. following bond yields. but not as low as you might have expected rates were bumping up against risk risks spiked when millions of borrows initially flooded into the government's bailout program. the details were not clear at first and servicers worried they'd be wiped out having to pay their bondholders. it was unclear how borrowers would make up lost payments. in the last few weeks the number of new requests for the bailout has slowed to a trickle all according to black knight and the rules were changed lowering lender and borrower risks. look at the applicants to

purchase a home. a v. and mortgage rates hit a new record low this week and could be headed even lower >> thank you our next guest's company is slowly starting to reopen after pausing home buying in multiple markets due to the coronavirus zillow's ceo is joining us in a cnbc exclusive nice to have you this morning. i mentioned during a tease that you're part of the reopening give us a run down on market activity the level of activity, and in what markets >> it turns out we in the shelter business are really lucky. we didn't know when this first hit, and the fog was thick, where this was going to go we didn't know if the real estate market would seize up like an engine without oil and so we were scared and took really quick protective actions

to protect the enterprise, to protect our investors and partners and employees and so we took those actions and it put in a good position. what we've seen since the beginning of this thing is that people spending all this time at home seems to have driven this large amount of demand and restlessness that first manifested itself in heavy shopping behavior. we're seeing shoppers to for sale homes on the zillow sites which get 200 million unique users a month. we've seeing shopping for the homes go up 50% year over year in the midst of the peak fear, i guess, demand went way down. and we've seen a slow steady climb back to what i would say is an abnormal market now. with people interested in moving >> do you see them following

through? is it your expectation they will i know you've opened your own home buying in phoenix, tucson, arizona and parts of north carolina as well is this just a lot of looking or does it result in your experience in what will be a sale >>. >> we're seeing shopping is at the top and the transaction at the bottom, clearly history shows that shopping leads to transactions that's what we've seen week by week we've seen the transactions come up they dropped to about 45% below what we would have expected. in late march and april. and they are back up 50% off of that now that may be an exaggeration. that's only 25% net. but effectively, way up from that certainly not back up to normal levels and we see a slow but

steady, our economist team sees a slow but steady return of transactions toward the end of the year to what they estimate is just over 90% of what normal would have been by december. that is what we are seeing it could be different, though, david. i have this theory that i'm calling the great reshuffling. i've seen you in your home most every day. i think you're working out of your living room or dining room. and clearly there are no kids running around i'm in my bedroom because i have kids running around. >> i see that. mine are older able to keep them upstairs >> well, you look really good for having older kids, david >> thank you >> mine are running around i'm in my bedroom, and this typifies, you know, i want a home office. maybe you do too it doesn't look like you're in an office. my dad had a home office i never saw the need for one in

the modern day, but i do now i think it's that kind of thinking where people want to reconstruct their homes where they're spending so much time, this home, this home for family and this home and shelter, if you think about the hierarchy of needs, i don't know if business school or people out there remember that, but the top of the pyramid is self-actualization the bottom is the basis. it's food, and shelter and it turns out we are really together, all of us right know, focussed on food and shelter that could be a decent proxy for jim's co-vid index what's in that bottom run of the hierarchy of needs that's driving a whole bunch of agitation to move, to get a second place if i hadn't had one. the people that didn't buy a second home are regretting not having a second home right new

and this is the economic whoa that is upon us and is going to play out in the next several quarters in the unploemployment it's a terrible sad thing. that's going to cause movement as well. maybe not for happy reasons. maybe for sad reasons but all of that is going to cause movement. >> it's sara also, in my bedroom. also can't escape the two little kids running around unlike david with his older kids. question on new york city. once red hot real estate market. is it going to look different in terms of the recovery than the rest of the country because it's so densely populated, because we got hit so much harder than most places around the world? what's your prognosis for prices and inventory and the overall market in new york >> the wounds are a lot deeper in new york city and the

psychological shock has been much greater in new york city than elsewhere and so yes, it's going to take a while. i'm a big believer -- i'm very impressed, again, we're very lucky at zillow and you are at cnbc you can conduct business remotely you've adapted and in many ways we've discovered things that are better when we're working remotely and all on a flat playing field than who lives closest to the boss. so companies like zillow, we got ahead early in thinking about all right, what is the modern coast co-vid workplace going to look like? how can we change our culture and overturn our biases about being in the office to being more modern and sourcing talent

with the talent we currently have can live where they want and feel like they're on a level playing field as everyone else we're working really hard on this kind of dynamic work environment right now. so this is a long winded way of saying i think it's going to change the calculus for the traditional high-rise elevator based dense packed city workplace, at least. i'm not quite sure about residents yet. we're all searching for data to confirm our bias or our theory that people are moving out of the city and a lot of people have kind of thrown that one out there without a lot of dat datao support it we see the shopping data we're not really seeing that yet. what we're seeing is lots more activity and a lot of di satisfaction with where people are living right now, but i can't point my finger or economic steam can't point their

finger at an overriding pattern. we've discovered the people who are working from home because of covid-19 who were not working at home prior to that are very happy working at home and want to continue doing that two-thirds of them after this, if we asked them to take after co-vid what do you want to do. two-thirds of them would say they'd love the flexibility of either working from home full-time or having to only come into the office two or three days a week. this is really going to change the dynamics of commercial real estate >> yeah. rich, we'll keep a close eye on that urban to suburban question, certainly. finally, what about the agents i know you talked a lot about your ability now to use 3-d technology to give people a good feel for a house without having to go in it. how are they changing their approach from the agent's side and their ability to get in a home and interact with their

customers in this new environment? >> they're adapting like we are. we've been -- zillow has the largest r&d budget in the industry we've been working on these electronic document technologies and 3-d home mapping and virtual touring for quite some time. we had a hard time getting uptake of that prior to co-vid of course, probably five years of adoption is being compressed down into five months now. but the agents are adapting. we have stories of people who don't want to go into somebody's house because they're scared that's for sale. they might drive up to the outside of it while the agent goes in and with a video conference technology, walks through the house and they take a virtual tour we have that happening hundreds or thousands of times, sufficiestuff like that, every day

i think it adapts the role of the agent and the agent just like in all business, the ones who are aggressive about embracing the new technology and platforms are going to succeed in the future. >> yes i think we'll see video of an agent doing just that. appreciate the updates on so many fronts. look forward to seeing you soon. >> thanks, david we got the dow down a little more than 150 points coming up later on the "closing bel bell". noted emerging market and fund manager mark mobius joins us to talk about the u.s./china tensions ahead of the president's news conference. and then jay powell coming up at the top of the hour. he's going to be in discussion we'll take it live for you stay with us on "squawk on the street."

but a slice is just right. that's why fidelity offers dollar-based trading. buy what you want based upon how much you want to spend, even if it's just a slice of a share. buy what you want based upon how much you want to spend, iit's not "acceptable oor nothing." and it's definitely not "close enough or nothing." mercedes-benz suvs were engineered with only one mission in mind. to be the best. in the category, in the industry, in the world. now, get 0% apr financing up to 36 months on most models and 90-day first-payment deferral on any model. mercedes-benz. the best or nothing. truly transformative sleep. so, no more tossing and turning. because only tempur-pedic adapts and responds to your body... ...so you get deep, uninterrupted sleep. during the tempur-pedic summer of sleep, all tempur-pedic mattresses are on sale!

the biggest opportunity could also be the biggest risk. we discuss it on cnbc.com/trading-nation.

tempur-pedic's mission is to give you truly transformative sleep. so, no more tossing and turning. because only tempur-pedic adapts and responds to your body... ...so you get deep, uninterrupted sleep. during the tempur-pedic summer of sleep, all tempur-pedic mattresses are on sale! welcome back to "squawk on the street." time for our etf spotlight we're looking at the s&p retail

etf, xrt it's lower by about a quarter of a percent. it's up 10% so far for the month. it's been a tale of winners and losers in retail where you have names like tractor supply and dollar tree. nordstrom is weighing down the index today. the dow down a little more than 150 points the nasdaq was positive. it has just dipped into negative territory. s&p down half a percent. looking at gains for the week. we'll see if we can hang on for a second week in a row "squawk on the street" will be right back ♪

♪ ♪

there are times when our need to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us.

if you're looking for names that are truly back to preco-vid levels, watch vm ware. we're going to talk to the ceo in a few moments on "squawk on the street." don't go away.

. let's get right to our jon fortt who is alongside vmware ceo patrick gelsinger. good morning, jon. >> good morning, sara. and good morning, pat. how are you? >> hey, jon. great to be with you and the show this morning and it's been a while since we chatted but just so happy to be back with

you and trust you're well and healthy in this environment. >> i trust you are well also good to see you. wall street certainly reacting to your quarter this morning the stock up more than 6.5%. strong results for the quarter that you reported and you also gave guidance, growth in the mid-single digits for the fiscal year but you expect possibly double-digit growth in fiscal 2022 as economies around the world recover and you've also said that tech is stronger than gdp, software and cloud stronger than tech overall, what's giving you confidence if you can give detail on what you're seeing from customers that gives you confidence that's going to continue. >> yeah, thank you, jon. it was a good quarter, i'm very proud of my team's execution and we call it grit. just to be able to fight through the current environment and continue to see growth as we said we're sort of a swoosh company, right. we see q2 and q3 being the

toughest quarters and q4 and q1 next year being a level of recovery is how we modeled our outlook. you know, in this environment, jon, digital foundation, digital transformation is more important than ever. if you think about it, most companies a few percentage, we were 20% of our employees were work from home before this, now 97%. given the length and challenges that people face, this doesn't go away. we're going to be here for the next two years that the majority of workforces or substantial portions will be work from home, distribute the workforce, and in the face of that, i.t., technology is more important, not less we're seeing what i said, sometimes it takes a decade to make a week of progress, sometimes a week gives you a decade of progress all of a sudden education, health care, work from home are making huge steps forward and

that's what gives us this view long term tech is going to be stronger and software and cloud will be stronger yet than the overall economic environment. >> i want to ask you about that. you pensionmentioned on the calr products benefitsing from the work-from-home trend and i believe you said things have gone from a 10 to 20% work-from-home situation where that percentage of the workforce is either completely or sometimes working from home to twice that what sorts of adjustments are you making in that environment you also said that the challenge now is to generate new business in this environment, versus just closing what was already in the pipeline. >> yeah. clearly for vmware we were 20% work from home i expect as we continue in this environment we're sort of going to end up in the 50 to 60% over time i don't think we're atypical

we're doubling and tripling the amount of work from home when you think about that distributed workforce, you go from maybe 100 or 200 sites depending on the size of your company to 10 or 20,000 sites and when you think about every home becoming a new work site, right, they need to be managed, connected and productive, work space one, they need to be secured, carbon black, good quality and bandwidth and cloud and capacity and that's vmware cloud and we said is our business continuity focus for the future, but we don't see ourselves as atypical here this is the new normal if you would and we're excited to see these transformations happening across the industry and we're making good progress with customers around the globe as we said, we used to generate new projects with pocs and being face to face with customers, the salesmen always like to shoulder up with the potential customers

and those are new muscles we have to [ inaudible ]. >> right. >> [ inaudible ] as a new pipeline that's part of what we give a more modest view of the q2 and q3 of this year, generate those new products and every cio is adjusting their priorities to the radical shift of the distributed workforce and new demands being placed on them. >> let me ask you about vmware, where work from home is concerned. by my calculation, correct me if i'm wrong here, your palo alto headquarters accounts for roughly 25% of your total global office footprint and you guys, it's a really expensive place to be and you guys have the technology that enables work from home. i think you just indicated that going forward, you expect more than half of your workforce to be distributed versus 20% today. do you think palo alto and silicon valley is going to continue to represent a quarter of your office space given that

future and do you think that work-from-home scenario is kind of temporary based on adjusting to post-covid or permanent >> i believe it's permanent. i'll start there you will be doing this for two years. every cio and i've talked to hundreds over the last couple of months, and everyone has said boy, we're doing pretty good this way in fact, i was on the phone with a major financial cio yesterday and he said, every metric is equal or better in terms of productivity and efficiency in this environment your productivity is good, your efficiency is good, it improves the quality of life for your employees. you don't need to fight that traffic every day. one day a week is fine or one week a month we'll bring you into the campus. that drives how we are reconsidering and call it work 2.0 and palo alto as you

highlighted an expensive but beautiful place, this will move from being a hotel for offices to a collaboration hub i expect our footprint will largely stay the same but redesign it significantly because this is where we're going to gather to innovate and build community to re-establish culture and connections with people it's not going to be a hotel, but it's going to be a place where we gather. a lot of the small sites we're going to close them because we want people to come together in these ways when working together, but generally work from home will be part of the new normal and we see this transforming industries, health care, telemedicine, education, brick and mortar going away. not just in the tech companies like us but across every industry we'll be changed as a result >> mr. gelsinger, it's david faber. i find myself somewhat shocked by those numbers you're sharing, 50 to 60%. many of the ceos that i've spoken with, 10, 20% perhaps could imagine that in terms of their overall workforce.

is it something very specific to your business, understanding obviously what you do and the expe expertise you have or is it going to be more widespread and what about culture and how you on board people what about just the idea of people congregating in an office and coalescing around certain ideas and the culture of a corporation doesn't that get lost? >> i say first is, i think this happens to every business, every industry, and if you're a manufacturing company with 50% of your people being in factories and locations, obviously you're not going to get to the numbers that we're viewing for our business, but we do think banks, you know, how many people need to be together versus how many have been working remotely insurance and industry by industry saying we can go to much higher percentages and even in manufacturing or other supply chain industries all the gna functions, the development

functions all of those are amenable to a work-from-home environment and improves your access to talent all of a sudden i don't need you to relocate to the expensive bay area you become part of my workforce remotely and have work from home and shared jobs and diversity in the workplace and less carbon footprint. these are powerful can you develop culture this way? can you innovate together? we're all going to have to learn new muscles here and, you know, like i am zoom bombing all of my team meetings around the world on friday of last week i was in australia, brazil, germany, uk, and west coast and east coast, all of those events that i could participate in virtually we're going to have to learn some new aspects of what it means to build culture and team and what the new norms are and what those tribal understandings of your team are we're optimistic this can and will occur and will be better as we come to the other side of it.

>> that is a bold prediction a strong quarter that we can see your stock reacting to as well as a steady guidance that seems to be cheering investors thanks for being with us pat gelsinger, ceo of vmware >> thank you, jon. >> zoom bombed by the boss jon fortt, thank you for that interview. a quick mention pat gelsinger will be taking part in cnbc's next virtual event, cnbc at work june 18th. request an invitation at cnbcevents.com carl, back over to you all right. we'll see you this afternoon david, a good weekend to you good morning welcome to "squawk alley." i'm carl quintanilla with jon fortt who you saw with the head of vmware and morgan brennan, coming to you live from separate locations on the final trading day of may markets trying to hold on to the 3 handle on the s&p. watching u.s. and china tensions, expecting to hear from the president on that. all but two dow stocks are red