monitoring doesn't have a lot of near term meaning for hong kong. crazys it is to say. >> yeah, i think this is one of the themes we are going to have to just watch in the days to come in terms of what the result is of looking into some of these potential actions. nothing may come of it in the end. >> yeah, 100%. over to closing bell, we'll catch you at 5:00. >> thanks so much. welcome to the closing bell. let's get straight to an intraday chart of the s&p 500. just go over those points kell hi aly and melissa were covering the s&p started down about a quarter of a percent when president trump began speaking it lowereded it during his presentation down about three quarters, it has now recovered as you can see to be positive as melissa pointeded out, no mention of tariffs, of tearing up the phase one trade deal albeit strong rhettic rick on other issues as it pertains to the world health

organizati organization, china as well as investigations of practices of chinese companies that are listed here in the u.s. so we're up 0.4%. 3% for the week as a whole sara >> straight to kayla in washington to recap what we just heard from the president including that significant announcement that the u.s. would be terminating its relationship with the world health organization >> and sara, the president prevud that a few weeks ago saying it would be reviewing the funding it sends to the w.h.o. in the wake of what it sees as shortcomings by the world health organization to alert the u.s. of some of the risks of the coronavirus. sources tell me that one of the ways the u.s. feels most wronged is that there was no information about asymptomatic transmission of this virus until late in the game when the u.s. population

and economy was at risk. he announced the administration would be suspending the entry of foreign nationals from china to the u.s., that the u.s. finds at risk to the u.s. population. my sources say these are people in the higher education space that the u.s. believes have ties to the people's liberation army in china the president also says the u.s. will be suspending, or studying rather the accounting prakctices of chinese firms, essentially giving more heft to that senate effort to essentially cause a lot of these chinese companies to certify they have no chinese government involvement otherwise delist they'll be studying an elimination of economic exceptions from hong kong. but the president stuck to the script didn't say when or how certain of these special treatments of hong kong would be rolled back

and what that would mean and when the president didn't take questions and you can be sure reporters would have accused him to e elaborate on some of these policies and the administration's decision not to go forward with some of the even tougher measures that had been on a menu present ed to the president. notably any freezing of assets or any sanctions on top chinese officials themselves those were not included in today's policy announcement. my sources they the you h likely see a continual ramping up of rhetoric going into the campaign and into the election season, but that the administration wants to be very careful to not exact any more pain on the u.s. economy than it's already feeling while still reserving some of those actions and those poll icies if and when they wan to roll them out at a later date perhaps later this year or even in the president's second term sara and wilf. >> i was just going to ask you, kayla, about what he did not

announce it's good that you know you laid out there are some significant policy actions including obviously terminating the w.h.o. relationship, but the sanction, the exiting of the phase one trade deal, i guess that, the market reaction had a lot to do with the fact that he did not go there. and i'm wondering if you have any background or reporting as to why not and whether those are still in the cards >> yeah, well my sources say that the treasury secretary was reluctant to use the office of foreign assets control to levy some of those tougher sanctions on china those actions they reserve for rogue ak r tors like iran and north korea and they have not been shy on using those actions on other regimes in the past as far as the trade deal goes, i believe the u.s. wants to be seen as upholing its end of the bargain. a source told me the white house doesn't want to go back on its

word on the trade deal and if anyone is going to exit the deal, it will be china there are also some of the purchases they want china to try to make quood on although with han eck peckation what the white house announced there will be some sort of chinese response in kind t hard to see china wanting to continue making those purchases if there's not a market need to do so. we're going to wait and see how china responds, but it is notable some of those tougher and harsher actions the white house could have taken did not happen especially as it relates to sanctions and potential visa restrictions for top members of the chinese communist party >> to mike now for more on how the market is reacted to all of this and mike, i guess the market reacting more to what wasn't said as opposed to what was said >> exactly for a bit over 24 hours, the

market's been bracing. just in case it was going to be something more economically consequential. the treatment of hong kong, the blaming of china for with holding information agent the virus. pretty much all of it. even the w.h.o. tough was handicapped beforehand and no punch line about trade or further measures is so that being said, i think the market just lifed whatever pressure came from that source yesterday's high would point out in the s&p like 3067 to still trading almost 1% below that, but just rebuilding a little bit after this strong rally in terms of what might come in terms of policy today >> mike, does this mean anything for a company like ab apple or nike that operates in china that pins a lot of growth on china that's been outperforming in the market because in large part of china? any of these moves today get in

the way of that? >> it seems no nothing that came from the administration today could get in the way who knows if there's going to be a resip row cal measure frs the chinese side so i do think big companies have sidestepped whatever might be a direct impact. i also think we have to keep in mind what the central fixation of investors is right now. i don't think the growth of the chinese economy is like top five in terms of what's going to decide whether this is a stock market rally that makes sense or economic revival that's going to happen on time it's about restarting the u.s. and a climbing out of this deep hole in terms of employment and business activity. so that's why i don't think it necessarily had the acute effect you might otherwise think it would. >> thanks so much. we'll see you again shortly. let's bring in mark moelggly thanks for joining us.

hong kong index was down three quarters of a percent today. it's closed as we speak, but ended the week essentially flat. does that surprise you would you have expected it to have traded down more this week? >> what this is telling us is that this wall of worry that people are climbing in this bull market actually we're in another bull market, is more stronger in terms of the upside than on the downside and i think by a lot of this business with hong kong has been discounted a lot because as you know, we've been through riots in hong kong for the last year, so i think we're now in a bull market again and it's quite amazing to me to see how much recovery there's been i was looking down the list of all the emerging market stocks and indices and we see increases at 30%, 20%, 15% et cetera, from the bottom

so i'm optimist that i can we may see a v shaped recovery in the economies as well. >> you're not worried at all about this renew eed tension the president there while not announcing sanctions or any tar you ha tarifs, did blame china's malfeasance for people dying around the world broaden the use of the wuhan virus, really a direct shot at china. you're not worried that's going to be economic or financial consequences >> i don't think so. i think sure, there's going to be trade tangss. it's going to continue, but trade with china and the u.s. will continue at a slower rate of course. but the interest sbring is is how a lot o this trade is is mo moving to other countries. supply chains aren't going to be interrupted much because manufacturers and buyers and

sellers are rei didn't go ling their supply chains to other countries, but china's still very important can't deny that. >> mark, i wonder what your expectation is that what this will all mean for hong kong. do you think there might be an exodus of businesses of citiz citizens there's already been hong kong has so many advantages in terms of changing taxes or the legal structure in terms of commercial law, then i think people will understand don't forget the tax rate in hong kong is much lower than china. so there's a lot of advantage to being there. >> what are you buying and selling? >> well china is biggest in our portfolio. it's not huge, but about 20%

then we have india, about 15%. brazil is up there, about 14%. south korea, 14. turkey, five taiwan, five even kenya, where at 5%. so we're pretty well spread around the world and china is still up there at the top. >> mark, good to have you here that will kick off the hour with that china news. let's get straight to eunice is there any reaction yet? >> so far, no official reaction. from the government. but you can expect that these comments from president trump will not go down very well at all. first of all, he described the virus as the wuhan virus, which the chinese really don't like. because they feel that this should not be a virus that's pin ed to one place. they repeatedly said this is a matter of science.

that they should not be blamed that china itself is a victim and that the u.s. was informed from china's perspective, very early on the chinese have said that there was no cover up. now from what also we know is that the foreign ministry had in the run up to this press conference by president trump had said that hong kong that china would take countermeasures if there was action on hong kong from president trump he said, the spokesperson said that china really sees hong kong as a, the issue of hong kong as an internal affair and gave a little bit of a hint as to what could happen if president trump were to really push the hong kong issue and so he for example, he had mentioned that wall street firms have a very good presence in hong kong

he also mentioned that the u.s. runs a trade surplus are hong kong american companies sell a lot of jewelry, a lot of beef machinery. to people in hong kong so there was a bit of a veiled threat earlier today from the foreign ministry about what could be done. specifically when it comes to hong kong. also what was interesting i think in the state media today has been how state media has been playing down the impact of the u.s. revoking the special status that it has with hong kong and there's a global times editor who's quite influential or at least followed very closely by many people here who had said that this was a, that the true determining factor for hong kong's role as a financial center is china and that it's not actually the u.s and so, so i think that what's interesting is that you're

really playing it down and what i also thought was interesting in the comments from president trump was that there was quite a bit of wiggle room in thiz lang wanl he wasn't saying we are definitely ending this relationship right away. it was all i'm kind of process and steps. which i think also addresses some of the concerns of the american business community in hong kong and in the region that had been very concerned that about the potential impact this could have on hong kong as a city, as a financial hub, but also to american business. in thety >> so clearly, the president did talk about the special exceptions for hong kong and talked about looking at accounting practices of chinese firms listed in the u.s. x suspending entry of certain foreign nationals in china, but the market is taking it as a measured response. that's what jim cramer just used on twitter he didn't go into trade and

tariffs, into sanctions. do you think ultimately as someone who has follow ed this closely, the chinese will see it that way >> i think that a the chinese are going to want to keep the trade deal going i think probably for the same reason that president trump doesn't necessarily want the trade deal to end and that's because of the economics behind it the trade deal is something that helps keep china's economy going. right now, china's in the process of reopening they have a lot of problems, especially when it comes to unemployment they want to have american companies here they want to have american business and they want to make sure that there aren't any uncertainties to the recovery. so because of that, china would probably not want this trade deal to end in any way shape or form, but they've repeatedly said in the past, if they feel that they are really threatened

and if president trump does come up with something else when it comes to tariffs, for example, then china would likely react with countermeasures >> i wonder what your reaction speaking to your many friends in hong kong has been, not just to what we heard from president trump, but the ooefbts of the last couple of weeks in general and how likely we are to see maybe not on the business side, but perhaps driven by the citizens themselves as to whether we are likely to see a big exodus from china and also part of that, the fact that the u.k. today has extended its offer of essential citizenship path for not just the original 300,000 hong kong citizen, but now up to about 3 million. seems like there's a lot of pressure there building on certain hong kong nationals that may now decide to move on. >> yeah, there's a lot more talk now about departing. so pretty much everybody that i

speak to there, whether or not in business or in academia are all coming with a plan b and trying to figure out where they would land if they were to leave the city but as of right now, it's still just talk. people are very depress ed for the most part about what's happening to the city. either they're angry at china or they're angry at the protestors and saying that they're hastening something that a lack of freedoms that they don't want to see so there are a lot of people who are really frustrated. i think that next week, we are likely going to see an escalation when it comes to the protests just because of the anniversary of the june 4th tiananmen square crackdown but for the most part, people are feeling that these protests have much more consequence than before. hong kong has always been a place where you can actually

protest quite peacefully and then more and more those peaceful protests are being broken up very quickly, which is something you see here in mainland china all the time. also the security apparatus here of the ministry of public security said it's going to be coordinating much more with the hong kong police and so that has also made people much more depressed about what's happen ng the city but i think what is is also important for people to understand is that even though president trump is saying making all those strong statements about hong kong, that from china's perspective, there really isn't any other option but to go really tough when it comes to hong kong because they do see this as an internal affair they're very concerned about the ripple effect it can have on other parts of what they believe to be china such as taiwan so because of that, it's going, it's hard to see how china would back down.

>> thank you very much for st staying up late with us as we see the dow hovering around the n flat line after the president trump news conference. breaking news on disney just crossing florida officials have approved the theme park's's reopening starting june 11th the department of regulations saying in a statement just now, walt disney world resort has established the necessary plans for the safe operations of its theme park properties upon reopening. disney shares have popped into the green here along with the overall market in the last few minutes. a lot of that was antis paid as we knew disney was taking steps to outline their reopening plans. >> and disney up about half a percent. broader market up about a quarter of 1% so holding on to some green ewe tiutilities and tech, finans

with about 40 minutes left in the session for the final session. after the break, we'll look at what the growing feud between the trump administration and twitter could mean for the fragile advertising market you're watching closing bell on cnbc (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. today. and always.

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you can count on us. get the connectivity your business needs. call today. comcast business. the battle between president trump ard twitter heating up today after twitter flagged a tweet. twitter says this violated its rules of glorifying violence the big question for the bottom line, will this war of words impact twitter'sable ility to da in advertisers joininging us now the mark douglas, founder of steel house. nice to see you. thanks for joining us. is going to affect twitter's business model >> it won't and the reason is that twitter, the federal government and advertisers who care about that are brand advertisers, but twitter is

what's called a direct response advertising platform, as well as google and facebook and just like covid didn't really affect their revenue, they had strong quarters, this won't either. the advertisers are focused on driving business and they're not even going to pay attention to this feud between president trump and twitter. >> that said, mark, do you feel like we're getting closer to serious legislation that could drastically change the terms in which these social media companies operate in i know we're close to an election, but it's becoming something both sides of the aisle talk about more often and quite passionately >> that does seem more likely. there was a move towards the two week years ago with facebook that kind of died down, but that with the 2020 election cycle coming up and both sides seem to be looking for democrats, republicans. i think some legislation is loickly but quite frankly, these

platforms are huge consumers are multiple ways to get news delivered to them they're not sure legislation can really slow them down. won't slow down their ad business as long as they have people coming to these platform, they'll sell a lot of ads. >> what about that, mark will this ultimately impact user engagement in any way? >> i don't think so. it's kind of -- you know what's interesting is president trump tweets about possible election fraud and twitter says gets the facts. in some ways, you can say they were spothing his message but the context is is always anything he says, there's the asupgs that it was anti trump and i think this case, it was, but the i don't think consumers really basically the users of these platforms paying a lot of attention to it.

they want to drive revenue and grow and if twitter, google, facebook can help them do that, they're going to spend the dollars and keep spending the dollars. >> mark douglas, thanks for your per perspective. >> thank you we've got just about 35 minutes left of trade. take a look at the market. it's been all over the place. technology is really shining nasdaq is near session highs the dow is wak up 32 points. went higher after president trump's news conference in which he announced a number of policy measures against china but stopped short of announcing sanction, tariffs or anything trade relateded, mostly having to do with hong kong and the virus. we are staying positive. s&p is up .4%. exception is the russell 2000. coming up next, the odds of reopening. we'll speak with the ceo of draftkings and the return to sports and what it means to his business, next

though the coronavirus pandemic has shut down most professional sports in the u.s., avid betters have found more create i have ways to stay in the game draftkings launching fantasy korean baseball and call of duty and launching betting on table tennis joining us now is ceo, jason robbins. good to see you. >> good to see you guys. >> how much of a drop off have you seen because of a lack of live sports relative pick up in some of the new avenues? >> not having the traditional sports that people are accustomed to seeing this time of year has caused some drop off, but we have as you noted, seen a lot of our customers pick up al teternative spot sports an even things like alternative content. we've been creating pools around

tv shows and other sorts of interesting things and you know we're also very excited that some of the traditional sports are coming back. p gr pga has a great slate of events you know slated for june we have nascar now going ufc. hopefully we'll get some others soon, but it's really nice the see epl recently announced plans to return in june. so hopefully it's a start of more and more of the traditional sports we all love and miss coming back. >> my question is on basketball because obviously there's a lot of talk about how to get the nba back in time for playoffs. how big would that be for you in terms of your revenue and would it be enough to catch up from the lost business from not having march madness >> it's been an breasting questions. it's really hard the know. this is sort of an unprecedentedunprecedente situation. never had partial seasons and new formats, never had the kind

of overlap we might see between sports in the second half of the year really hard to predict how u that will come in. obviously we know a lot of people are home and we're hopeful that the pent up demand for sports will lead to people participating more than they normally would, but really hard to predict until we start to get more data on this. >> jason, we've asked a lot of people on this network whether or not the lack of sports betting taking place has pushed some people into the stock market instead do you when you speak to your friends, clients at your executives get the feel that some people have done that or are they very different types of clients and betters as it were >> particularly daily fantasy sports customers have definitely indicated through some of their contacts with customer service they're doing a lot of stock picking now. i think particularly when there was a huge downturn, a lot of

people that were, it was kind of a nice perfect storm if you will where there was sudden ly a lot of toks that were a lot cheaper than they were right before back in mid march and you also had a lack of sports so i think those two things did make a will the of our customers start paying more attention to the stock market and you know, in some ways, it's not that different. it's about analyzing, researching and making good picks. >> to that point, do you think there's a lasting impact on this on one level, do you think some of those customers have now got the stock market bug and they won't come back to sports betting and or do you think some people are watching for example the german soccer because that's been live and back for a couple of weeks and perhaps will stay focused on sports and leagues like that in a way they weren't bf >> you know i think from what we're hearing and seeing, people are really hungry for sports to come back. you mentioned bund league.

we're seeing more participation and of course it's because there's not a lot of soccer or anything else on tv. i think what people really hu hunger for is the sport it the fant issy and betting is merely a way to engage you can strachcratch a little b. people really want sports to come back. >> i mean your stock has been incredible on the whole reopening trade and that spors s will come back, jason. there's also this idea that the virus will force more states to legalize sports betting as a way to fill their budget gaps and we've already tart ed to see that what's your expectation? >> you know, i definitely think it's a valid hypothesis that with more and more budget gaps and more and more states around the country, that sult of fallout of this pandemic that you could see states turn to sports betting and even to i gaming as a way to raise more

tax revenue and it's little early to know i think rightly so, a lot of the state policymakers are focused now on dealing with the immediate issue of what the pandemic is causing, but i think once they start to feel good about that, once they feel good that their economies are reopening and things are safe, i think the next thing they'll turn to is how to fill some of these budget gaps and hopefully this will be someth g something, sports betting and i gaming as a a way to do that >> thank you for joining us. >> thanks for having me. >> i look forward to the return of the english premier league on june 17th. not long now >> i know you do i was so excited to see that headline for you >> were you actually i can't tell if that's serious >> yes >> either way. >> i know. still ahead on closing bell, despite the economic downturn, home builders have been surprise winners of late, but will that trend continue i'll speak with the ceo of lgi homes which is up more than 15% this year.

let's have a look at bond yields lower today. ten-year, 0.65%, so it's continued its slide today. back in a couple of minutes. it's hard to eat a whole pizza. but a slice is just right. that's why fidelity offers dollar-based trading.

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time for a news update >> hello, everyone the family of george floyd is calling on authorities to revise the charges against the arrested officer. that officer has been charged with third degree murder but the family says they expected a

first degree murder charge they want to see the other officers involved arrested. and in a statement posted to twitter, president obama says the death and custody of floyd shouldn't be quote, normal in 2020 america william barr calling the video of the death harrowing to watch and deeply disturbing. l.a. county clearing the way for dine in restaurants and hair salons to reopen after months of being closed the exact date and restrictions haven't been announced yet and san fi says due to safety concerns, it will no longer supply hydroxychloroquine to treat covid-19 patients. for more, you can head the to our website. that's the update at this hour back to you. >> thank you 21 minutes left of trade up next, fed chair jay powell

says the fed has crossed a lot of red lines and he's okay with it we're going to speak to the man who interviewed him earlier today. at nt. vice chair of the fed, th'sex [squeaky shopping cart] [sniffing] is the salmon wild-caught? she only eats wild caught. [cash register beeps] uh, i need a price check on honey. don't get mad. get e*trade and get more than just trading. investing. banking. guidance.

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our job is to keep your business connected . it's what we've always done. it's what we'll always do. dow down 28 now. the federal reserve is pushing its limit when it comes to efforts to shore up the economy. speaking at a princeton university event with alan blinder, jay powell said the central bank has continued authority to act if there's a second wave of coronavirus infection, but powell did note the unprecedented nature of some of the fed's recent programs listen >> we crossed a lot of red lines

that had not been crossed before and i'm very comfortable that this is that situation in which you do that then figure it out afterward. >> joining us now is alan blinder, former federal reserve vice chairman. so that was fun to watch, alan what was your impression and your big take away from chair powell other than sounds like sr >> i was glad to hear that i think my big take away, it's been a take away before, is that jay powell is not only remarkably good at what he's doing, but rausemarkably frank about it i don't have to remind you, sara, that it wasn't all that long ago when if you were speaking as chairman of the fed, you were supposed to speak in tongues or something like that

ben bernanke moved away from that janet yellen moved away from that and i think jay powell has moved this to an entire lew any level of frankness that little clip you just showed crossed red lines. you know, it's something i think former fed chairs wouldn't have said he was very comfortable saying it and what he meant of course is that if these are not unprecedented times in which you do unpres denned things, that does that mean >> what did you make of what he said about income inequality >> that was another thing. the fed often has gotten and certainly happens in the financial kris i, blamed for worsening in a -- and ben bernanke and janet yellen have always said correctly that was never our intent but other people commenting on it said well, if you boost the

stock market, going to raise inequality jay powell had a different take on that and very appropriate take on it today. and he has before. which is that this horrible recession depression, whatever you want to call it, it's a completely new animal. is bearing down hardest on the people least able to defend themselves low age workers. people with practically no cushion. nothing in the bank account. to fall back on. and to the extent that the fed's actions can shorten that just call it a recession and make it less steep, it's already. >> reporter: steep, but less than some other outcomes, it's actually going to improve. >> alan blinder, thank you for joining us with your take on powell today after that event.

>> we've got 16 minutes left of trade. after the break, the surprising stock winners for the month of may and rare comments from wells fargo's ceo. those stories and much more when we take you inside the market zone and a you can always watch or listen to us live on the go on the cnbc app dow barely negative. s&p and nasdaq holding on to gains. we'll be right back. (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. today. and always.

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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. 12 minutes left in the day all the action wildfire we head into the close mike is here to break down these crucial moments and today, we've got dan nathan here as well with us good afternoon to you. dan, mig, let's kick things off with the broader markets s&p 500 up about a third a percent. nasdaq is up by about a per spent or so and nice gains for the week as a whole.

i guess we've held on to most of that positivity that we kicked the week out with but sort of similar in the end to last week in that it was not as respouounn at the back half of the week as it was the first half f. don't think weave gt mike's mike there. but pif dan's with us >> i'll take that one. so two weeks in a row, we st started off with good vaccine news gapped up this monday and tuesday. what's really interesting about the price action over these last two weeks is that the market has basically just held those gaps by the end of the week so not making a whole heck of a lot of progress, a big part of that i think has been this rotation we've kind of seen into cyclical value. you guys have been talking about it, into the the transports and banks. into retail. into energy. some of these groups that were really beaten up and we've seen megacap tech slow down

so you're seeing that push and pull right now, but that comes at a really important part of pr places in the s&p 50 we gapped up to 3,000. that was the breakout level from october. there's a lot of technical resistance there and it tells me that traders, investors are really contemplating how much we can build without any good news about the recovery >> i sense you're still bearish. dan nathan we want to get mike back into the conversation we've got his microphone up and running. a mini raply that we're seeing to another positive week and month. >> it's a little defensive actually in tone most stocks are down today i don't think it changes the equation i think you can look at this market and say it's a little

overbought some hot money traders, options market looks like it's a little bit overaggressive in the very short-term, but these are the exact types of readings you get after a major market low you're starting to build momentum toward a bigger advance. i think you can have both things be where you have to flatten out and give back gains in the short-term but not change the yoef all structure, which is that the market is kind of punishing people for having sat on the sidelines for a while and is maybe overanticipating economic revival, but still anticipating one at this point >> three positive sectors for the year now technology, consumer discretionary and health care. speaking of health care, the world's largest cancer research conference is kicking off and going virture. meg has the high lights for us next >> kind of a weird experience to get all of the data for everybody coming online. one of the presentations is from

astrazeneca on its drug in lung cancer there was a study that came out the conference last night of the drug given after surgery to prevent occurrence of cancer and reduced that risk by 83% the stock popped as much as 6% yesterday. now up about 2%. elsewhere this the lung cancer battle, we're looking at bristol myers against merck. sort of the coke and pepsi bristol myers get ating approva in a combination and we asked the ceo about that approval and this competition this morning. here's what he said. >> 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 now possible, and also the opportunity of limited cycles of chemotherapy, so i think we have an important role

to play in lung cancer >> guys, even in a pandemic, research into other areas go on. >> thanks so much for that want to move on and talk about the banks a bit now and today, we heard from the ceos of both wells fargo and citi speaking at the bernstein conference and got an interesting different tone in terms of level of commitment from each ceo to maintaining their dividends from wells fargo ceo and then citi's ceo after that >> to pay what the dividend is we feel very, very good about our capital base it is very, very strong. and when we look at our earnings, last quarter were quite week you'll see the same thipg this quarterment so ultimately the question comes back to these scenarios in terms of where you

think the world goes, what the real earningings capacity of the company is and that's work that's always ongoing. >> the earnings power that we have, we feel comfortable that you know our dividend is not overwhelming >> now the dividend themselves not perhaps the key factor for the stock prices, which in a typical week, are moving more than the percentage yield on the dividend but the fact that one back might be feeling more pressure to maintain it than another is indicative of pressure we also heard from charlie about the asset cap for which the first couple of years didn't really limit their growth is limiting their growth at the moment because of the growth of assets on the balance sheet during this crisis from higher deposits and things like that. two factors that that can explain why wells fargo share prices have underperformed some of the other big commercial banks. but one of the key take aways from all the big banks that have

presented this week after the deutsche bank was relatively constructive as a whole. relative to where the bank share prices has gotten as a group >> right, the incremental direction of movement in terms of spending is obviously positive pretty strong housing market and mortgage demand has to help as well i think it's a questio of how the banks rank in this. they get swept up and when it comes to the dividend decision, if you're wells fargo and yield more than 7.5%, more than double what your peers are yield, you're not getting credit for the level of the dividend because there's disbelief out there that it will be maintained and decision making as to whether in fact it is held at these levels down the road >> dan nait b b, within your overall bearish tilt to the market, where do the banks fit in do you see values here

>> no, they're horrible. all the ceos we heard this week it reminds me of the 2008 subprime is contained. listen, these stocks act so badly. i know they were up. it was a dash for trash. it's set up as a good short squeeze candidate. mike on twitter, you should follow him had a great chart talking about how the s&p versus the bank stocks. they did retest. the ones they've been play iing for. the banks did and they held and what happened? they ripped afterwards people are talking about mortgage and housing demand, that's going to change when these white collar jobs are going to go away in the second half of this year in early 2020,

2021 so i just don't think these banks have stress test ed for what 10% unemployment looks like going forward r for maybe an extended period of time, more than double what we saw at the lows about five or six months ago. >> two minutes, three minutes left of the session. we're up about 0.6% or so. on the s&p 500 so mike, improving quite nicely into the close again >> yeah, rebuilding back toward yesterday's highs i guess you'd want to sarks which is the highs for this move and really the movement below the surface has been the torre this week two days of massive outperformance by value and beaten down laggards and then two days of kintd o return to form probably makes sense to be agnostic about that relationship at this point even though the growth versus value relationship has gotten very, r very stretched. >> dan, so you missed the move

over the last two months you're not backing down from an hour your position >> on any given day, i've missed the move i was on fast money on march 23rd saying we were going to be a vicious, virs rally. so i was expegting something of 20, 25% or so. we've gone 35% off of the lows, what have we also done saw an epic, epic, unprecedented monetary and fiscal stimulus here so we front end loaded that stimulus so we've overshot to the youpside i don't feel like i've missed a lot especially given the fact to early april to just about a week and a half ago, the s&p was trading between 27 and 29.50 so we've just broken out a bit i think the market is 100% dislocated from economic realities that we're going to tase in this post pandemic economy and you can have at it trying to break out going for the new highs.

it's a mugs game right now things seem a bit rig and i think as we get into q2 earnings in the back half of guidance for the year in july people are going to say valuations are really stretched do you think microsoft trading 35 time, google trading 35 times make a lot of sense? maybe not. i suspect we see eck quities lo in the next few months >> 5050 seconds left as we stand the s&p 500 is up by 0.6%. the dow is flat up a handful of points or so the high of the session is up 82 the low is 370 the nasdaq leads the charge today. 1.4% for the week as a whole, nasdaq

lags it's up just shy of 22-% with both the s&p and dow up more than 4%. in terms of sectors today, technology and health care very much in the lead financials very much the laggard and that's a reversal of the theme we've seen for the rest of the week at the close, s&p 500 up 0.6%. up 3% for the week and up 4.6% for the month. >> and not quite a positive close for the dow, but still that cap off the dow's best week in the last seven. take a look at how we finished up the day on wall street. dow closed lower but it had been all around the flat line really unchanged down 17 points into the close and that will be good for the best week as i said in seven for the dow jones industrial average. s&p got a positive close up a half a percent thanks to technology, health karks some of the defensive plays, eutilities.

also some of the beneficiaries in today's trade as for the nasdaq, you saw the tech outperformance. really got a pop there in the final hour of trade. after president trump came out during his news conference, announced a series of -- terminating the relationship with the w.h.o., but stopping short of sanctions or any trade measures and for all intents and purpose, keeping the phase one trade deal impact with china investors responding positively to that. the russell 2000 was the big loser. down half a percent. it's been the big loser though for the week, it had been doing better on this rotation into the laggards president trump getting set to meet with ceos this hour from a variety of industries at the white house to discuss reopening the economy. we'll monitor that, bring you any news as soon as it happens, but let's talk about the days,

the week, the month. dan nathan is still here we've also got katy nixon from north trust. first to you, mike, on the wrap on the week, the month and the day. >> obviously strength is the story. s&p up more than 35% since the lows a couple of months ago and there's not been as much as a 5% pullback and very brief so the strength of the actual price action is the encouraging part i do think you have to be concerned in some of the short-term mores like sentiment on the options trading side of things, maybe some other, maybe indications that the move is getting exhausted. but you regain 70% of the losses from the february march decline and that's bigger than any rally that you would characterize as a head fake or just a dead cat bounce or bear market rally even so obviously this is a very

unique peertd period and eck treems and compression of time and these moves has been extraordinary, but i think you have to respect the fact you've gotten here on something like under invested fund managers you fed off of that. the question is what takes you next step at a time when nobody's really focusing on real time earnings it's all about the absence of impediments to the reopening of the economy right now. >> we saw rotation at the start of the week. clearly, that was undone a little bit today do you think the broader rotation of cyclicals outperforming and the tech outperformers pausing their gains, do you think that continues much more or did today highlight the limits to that rotation >> it's really been the last two weeks where we've had almost sort of a tale of two months on where we had weakness in some of those broad-based value indices and small cap indices coming in the middle of may, things really turned around where they started really launching returns on some

of those big tech names. i think the future is really going depend on costs. certainly a lot of optimism reflected in the rebound in those deep cyclical areas. >> dan nathan, you know i mentioned china and how there was a bit of a sigh of relief that investors seemed to breathe after that news conference no major curveballs or surprises in terms of policy actions taken against china. how do you view that escalation in tension is that relief or could it signal there's more to come here >> listen, the risk was to supply chains. if you saw what turned on a dime, is semiconductors, that was an area that would have been adversely affected if there was you know some major issues here. i think the equity markets are not pricing in this situation. president xi is treating

president trump like a lame duck trump blinked today. that's fine. i don't think anybody is really in the mood given what's going on in the world, our country, for a major, major dust up with china. it would be something that kind of similar to what we saw in 2018 when he started slapping tariffs indiscriminately on c chinese goods. it was a major, major drag on the global economy we can't afford that right now so when you look at semis turned the way they did then i look at areas that are really not adversary affected whatsoever about anything going on right now, you're looking at some of the cloud based software name, they're up 30% today you saw what workday did yesterday. even salesforce.com. he gave cautious guidance. can you imagine during pandemic and the stock oes only doung 10%. i think you want to stick with the cloud based stuff. i suspect the stuff in the china supply chain are going to have a

tough time in the back of this year largely because of demand >> more on what the president said about china this afternoon. holding that news conference earlier kayla with the high heights. >> it was fairly current totally on script and the president refrained from going forward with some of the most harsh actions that his advisers had put forward. my sources say these are chinese nationals who are found to have links to the people's liberation army they'll be studying the practices and delisting those and will be studyingen an elimination of the special economic status for hong kong.

something the secretary of state allude today this week in a certification the congress but what moved the market was what the president did not announce he did not announce any revocations for senior offici s officials. any financial penalties like asset freezes for officials orfd the administration didn't touch the phase one trade deal with sources telling me the white house would prefer to let china make any changes to that if they choose the back out of that deal. now certainly this was welcome news to the market that those items were not in this package and this afternoon, the white house has multinational executives a meeting with the president and his economic team, to talk about the recovory and reopening hereh united states. a senior administration official tells cnbc that that list includes executives from united airline, southwest airline, windham hotels and kroger. we have seen some of those ceos

going in today, we are expectin to see them on camera potentially with the president answering more questions in a few moments time and we'll bring that to you when we have it. >> thanks for that mike, i guess a little bit of a surprise this week with geo political tensions not to see the chinese yuan weaken more and more broadly, the dollar strengthen in fact, the dollar down about 1.5% this week and the dsy close to the 98 level. is that encouraging to see that we've seen the dollar soften even with the bullish risk of embracing of risk didn't hold for eck quities all week >> yeah, i would say although i do think that you know the movement in the dollar index and the dollar itself has a lot to do with the euro as we talked about and the fiscal there. eemed like it forthe our

that's all to the good it fits in with the general idea ha the mark that the market is not focused on the obvious right now, in terms of the pandemic. treasury yields remain low and i don't think that's been a problem really getting in the way of overall stock market progress, but if they were to go much lower, that's the one thing to keep an eye on. even though the curve is steep, the ten-year hasn't been able to hold above that .7 level for a while. >> i would say it also continues with the theme that a lot of people are caught off sides by this move. everyone was betting on the dollar as it relates china problem, i mean how do you protect your portfolio for continued escalation and tensions here. >> right as your prior guest referenced, no one's been really pricing in geo political risk here. we've all been very focused on the pandemic, so this is very

much sort of out of left field and i do think it will contribute to market volatility. so i think what investors should do is prepare themselves for more volatility. you've got risk asset markets that are doing very, very well and reaching high valuations, which in and of itself provides fragility, suggesting some, and now you have geo political risk. we're a bit cautious not bearish, but cautious, around what future returns may be over the summer as we do expect the recovery to be relatively weak. >> dan nathan, some final thoughts i know you think the s&p 500 has bounced too far too fast what would you buy though as you stand today? >> well, listen, i think there's a lot, the megacap tech stocks are the thing everyone wants to buy. when you hear about the $5 this will of cash in money markets and retail and institutional, that's where it's going when it's coming into pass. so when you think about

microsoft, apple, these monopolies, balance sheets, that's where you want to be. you just need to buy a rally the nasdaq 100 with those top five names, that's the trade for the next decade and there's going to be great winners in there, too, but you don't buy them after a 40% rally off the lows after we've had this massive economic and health shock. so to me, the past guest, she's cautious i'm bearish. bearish on the economy that doesn't mean those megacap stocks can continue to go, but that's what you buy on the way down that's what you dollar cost average the whole way. >> dan nathan, katie nixon, thank you both up next, we'll ask a long time adviser to china's leaders about the potential ripple effects of today's moves from the white house and what ts hi could mean for global markets. how china will likely respond. back in just 90 seconds.

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president trump announcing the -- >> the process of eliminating policy exepgss that give hong kong different and special treatment. my announcement today will

affect the full range of agreements we have with hong kong from our extradition treaty to our export controls on dual use technologies and more with few exceptions >> china striking back let's bring in robert. what do you expect to be china's response. >> china will obviously make some critical comments but i think everyone is pretty pleased to let things go as they are his mission was to talk tough on china and not tank the stock market both are critical for his re-election. i think he did a good job of threading the needle mission accomplished if we look at the markets and what he said from china's point of view, one

needs to understand the context. this year it's the first step in china's great rejuve nation as president xi has said, the chinese dream. and this moderately -- ♪ >> maybe played the wrong thing there. is robert still with us? can you hear me? >> yes, i can. >> please continue >> okay, i was saying that the moderate -- >> we've got communist party music ahead. >> okay, well i guess i am p preempted by the pomp an ceremony it's important to understand the moderately prosperous society. there are two pillars. one is economic development. lifting the stapf dard os living of the chinese people which is emp fied by the accomplishment

of eradicating all extreme poverty in china roughly ll ll lly 900 million p. hong kong has been a sore in the side of this pillar of national sovereignty and pride. as a result of that, that's why china has moved now on hong kong because of this critical year. but china wants to build hohong, not constrain it we have to see what happens with independence and freedom, but china wants hong kong to be a core of what they call the greater bay area coordinated economic zone which they want to become a world center for commerce, science and technology, education, et cetera >> robert, obviously, we all

hope that things disapate in terms of this clash around hong kong without any elevation one wonders though what could next i guess with hong kong, there was a clock ticking down any way for when china would have full control. i mean 2047. it's a long way off, but it was at least going to happen one day. do you fear that china's going to do something similar towards taiwan and if they did, where could that escalate to >> hong kong is very different than taiwan in terms of the implementation of what will happen conceptually in terms of national sovereignty and national pride, there's a great deal of similarity to it but hong kong is very key now and will be something everybody is watching. the jury's out and china, everybody will be looking to see what china will do the vice premier said after the national security law was announced that it will only affect a very limited number of

people we'll have to see. but what china wants to do is to keep calm there and to have hong kong be part of this greater economic zone in southern china. that's their big ambitious but they have three red lines in hong kong. shouldn't misunderstand. number one is any move towards independence or quasi independent like ewuniversal suffrage if hong kong is seen as base and third is unending chaos, which undermines the economy so if those three things can be prevented, china, i believe, will allow hong kong most of the freedoms that it's had in the past >> robert, thank you so much for joining us >> still to come, mike will break down the latest reading on inves r ttor sentiment to find whether the rebound rally.

then the kardashians what forbes is calling a web of lies that and much more next. it's a thirteen-hour flight, that's not a weekend trip. fifteen 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. ♪

an interesting story out today involve iing the kardashi and a publicly traded company. kylie jenner had been celebrated as the younge esself-made billionaire, but now, forbes published an investigation saying she is not and maybe never was a billionaire calling it a web of lies these new numbers came to ligts after cody purchased a majority stake then disclosed sales figures that were lower than quha kylely jenner claimed as in less than half shares are down 70% since that announcement and got crushed again today. closing down more than 13% forbes alleges they were given altered tax returns and other falsified statements from the family, but does not suggest any impropriety on their end let's bring in mike, who's an expert on not just the vix but also the kardashians i think they're putting her new

net worth below 900 million, so not much of a difference >> and by the way, magazine journalism, which sometimes involves when you're dealing with private companies taking their word for it. and that is a big risk, but how different is this than silicon valley companies kind of fudge ing a bit what their last valuation, their round was of the last capital raise and saying they're worth a lot more than they think for public consumption. i think you run into a little bit of a hazy area here. >> is the accusation for the r kardashians or generalers, i get confused, lied to extract a bigger price when they sold a stake this their company or is it simply when it came to reporting these things to forbes, they inflated their public image of their value because that kind of frankly is much on forbes being obsessed with the details in the first

place and kind of president trump's done that, we believe others do that and it's kind of quite vulgar to want to inflate what people think about your money, but independet kind of h. >> it's the latter just what you said sort of inflating it to forbes on the billionaire's list. nothing to do with the actual sale >> frankly saying it's a web of lies, it's on them they drunk the kool-aid. they misinterpreted it and got had and did bad reporting. >> by the way, i'm not -- >> falsified documents, what else are you going to go by if not documents. >> yeah, falsified documents is significance >> and we should say sikylie is completely denying this story. confused what am i waking up to was her exact quote. they got it completely wrong >> you know what's interesting is -- >> not bad >> it's interesting that people

still want to claim to be a billionaire. you would have thought that was a targeted class these days. >> i think it's very interesting story. there we go. we've been told to move on, mike, to your dashboard. you've got a lot to live up to now. >> well, here's the big question, hovering over the markets, which is which direction is the so-called pain trade. in other words, are people still positioned in their investment accounts too conservatively, too defensively, look at the sentiment measures there's ferrell sentiment. it's basically a ten week average of the individual investor survey. we talk about every week and it divides it by neutrals it's showing you quite depressed sentiment in terms of main street traditional investors that's been consistent for weeks now. however, i was mentioning earlier, you look at professionals and omptions

traders. it's a different torre when this line gets low on the chart, it's an extreme contrary signal that maybe the marketha run too high because nobody's interested in buying downside protection the ten day average of this measure is pretty much at extreme lows last seen this january around the vicinity of hort term market it sort of nets out to naugeutrl >> i'd prefer the jenner story >> i know. >> i'm not a fan >> but mike is so fluent on the investor assess m. breaking news on pfizer. meg. >> hi, sara. sharp move lower r for pfizer on a breast cancer trial whose results just read on negatively for pfizer's major drug. this was on a specific kind of genetically defined or hormone alley defined cancer and found i

brands did not show an improvement in an end point of disease free survival or essentially stopping the disease from progressing so pfizer stock's down more than 8% on this news. clearly, a blow and the company expressing disappointment here in its press release the ceo saying quote, this result is not what we're hoping for but we're steadfast in advance ng the care of people living with breast cancer. so quite a move lower for pfizer here guys >> meg, thank you. homebuilder stocks have been red hot recently and vastly outperforming the broader markets. up next, we'll ask the ceo of one of the big home builders about existing homes for sale during this pandemic

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and savings up to $500 on adjustable sets. breaking news on the nba

>> the nba is targeting july 31st as potential date to restart the season this was discussed on today's owner's call with the nba. this is not is set in stone and could change the athletic was first to report the story and we have reached out to the nba for comment we don't know yet what the format for return to play will look like but it would be big news for disney and tnt, parent company at&t those are the media giants that have the right to air nba games. so we're keeping an eye on that as well. certainly big driver for tv ratings. back to you. >> absolutely. julia, thank you we've got breaking news now on ceaser contessa >> whatever, it works for me they say they're going to open a third property on the las vegas strip next thursday, june 4th,

when the state is allowing these to open. it's a big deal because it's an indication of demand in the release that they just put out, the ceo says initial customer demand to visit the las vegas strip has been much stronger than anticipated triggering our decision to reopen harrah's las vegas in addition to ceaser's palace and the flamingo and harrah's will launch a $200 million remodel. mgm added a third model. we'll keep watching for more next week, guys. >> interesting comments, especially on the demand thanks home building stocks have be getting a big boost from an unexpectedly fast recovery in housing. diana. >> yeah, it was a surprise to the builders themselves. new home sales even in april, outperformed expectations by a lot. still down from a year ago but only by %. and then luxury builder toll

brothers r reported its second quarter as a strong start. as the virus dropped, but the ceo said web traffic has improved from the lows he experienced mid march and has returned to the same strong activity we enjoyed pre covid-19 in february. these trends suggest the housing market may be more resilient than just two months ago you can see the builder stocks in the etf they're up 50% quarter to date and it's not just the big builders i spoke to the folks at mid-atlantic, a smaller builder. they said sales doubled and web traffic increasing back to those busy levels in february. now the builders are benefitting from this sharp drop they're also dropping prices 22% of builders said they dropped prices 5% and according to a new survey. back to you guys >> thanks so much r for thfor tt

for more, we'll bring in eric. the ent largest residential builder in america and its stock up nearly 20% so far this year eric, thanks so much for joining us love to start on the big picture. talk us through the sort of lefl of demand you saw initially in the last couple of months and any rebound you might have seen. >> sure. appreciate being on the show and we are seeing strong demand right now. just like diana talked about we're coming off our first quarter results where we had record breaking closings revenue and record breaking profits. and then of course in mid march, covid-19 hits and really that during that period of mid march through mid april, we really focused on three things. first, the communications for employees. very important during the uncertain times. second, we focused on the safety and health of our employees, our customers and our trade partners and third, during that period of uncertainty, we really needed to

focus on cash. both cash going out as far as expenses go and gas coming in and focusing on closing our pipeline and since about mid april, what we have seen and what we are hearing is we are seeing strong demand from our customers. we think that's driven primarily from two reasons one is rates rates for us means an afford bable payment for r oour paymens we are focused on the entry level part of the market our customers are currently paying rent and low rates leads to affordable payments and right now, our lenders are being able to offer our customers for fha and v loans. rate va loans, rates in the 3s that is the lowest rates that our lenders have been able to offer our customers in the history of our company and also we're seeing strong demand and hearing from our

customers again that are living in apartments. living in rental situations. in dense environments that that desire for hope ownership is as strong as ever the ability to get into a home, to spend time with your family, to teach and cook together, to have your own yard that has been elevated because of this covid-19 situation and rates in combination with the desire for hope ownership, we ahome ownership, we are real seeing strong demand >> wanted to ask you about pricing because it looks like you reported a big jump, almost 6% in prices in the first quarter. what's driving that and does it continue >> yeah, thanks. i think it does continue we're seeing strong demand we have never been and nor are we a builder that is offering incentives like some of our peer groups have talked about because what we're seeing strong demand

from our customers, in an environment where there's a short supply of houses no reason to discounting for sure in fact what we did in april for the second quarter, we raised prices on the majority of the communities and as long as the demand keeps up, which we believe it will, we plan on raising prices again in q3 of this year. >> eric, thank you for joining us with an update >> thank you >> still to come, the president announcing a set of new measures confronting china, including withdrawing from the w.h.o we'll discuss the plimications with scott gottlieb when we return in a couple of minutes. i. i. 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,

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time for a cnbc news update. >> hello, everyone and here is your cnbc news update. body cameras show that the officer had his knee on floyd's neck for three minutes however, the me also found no physical evidence that strangulation caused floyd's death. instead, the report points to a combination of police and restraint and floyd's heart and artery disease the autopsy is still pend iing n the floyd family says they'll seek independent examination zblncht a prototype for spacex's rocket has exploded during testing. it is designed to send people to the moon and mars. to follow on the falcon 9 rocket which is set to launch astronauts to the international space station tomorrow and google has reportedly canceled job offers from

temporary workers. google says it's been slowing hiring this year amid all uncertainties created by the pandemic and check out cnbc.com for other changes google has made since the outbreak began. back to you. >> thank you up next, the president just withdrawing the u.s. from the world health organization. what that means for our coronavirus response with dr. scott gottlieb right after this break and tonight, 7:00 p.m., the nation's saving rate hits an all time high as americans stockpile their cash plus, the alabama mayor that's trying to battle a health crisis as his city becomes a hot spot for the virus and three business owners on their troubles, hopes an path foarrwd. i'll see you tonight, 7:00 p.m we'll be right back on closing bell (bling) see, incident resolved. how did you...

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welcome back president trump announcing the u.s. will be halts its funding

to the world health organization and cutting ties >> china has total control over the world health organization despite only paying $40 million per year compared to what the united states has been paying, which is approximately $450 million a year we will be today terminating our relationship with the world health organization and redirectinging those funds to other worldwide and deserving urgent global public health needs. >> joining us to discuss what that move could mean for the global coronavirus response, former fda commissioner, dr. scott gottlieb, also a cnbc contributor serving on the board of pfizer and alumina. nice to see you. it will be a huge headline that president trump cuts ties with the world health organization in the middle of a pandemic what does it actually mean in reality? >> well the immediate impact is going b to be on programs that were only administered be i the world health organization.

so public health programs that were administered by other organizations, the u.s. can continue to fund through those other organizations and probably will w.h.o. was the only participant and the only one i can think of is a polio eradication program we won't be able to fund that because the w.h.o. is the only participant. they did play more of a role i think in developing markets and as you see covid become epidemic in the southern hemisphere and you see risk to south america and western africa, now we're seeing the nakt that w.h.o. had major problems and i think the president's right. the organization was troubled. there's a lot we can do to reform it. it was helpful this nose markets. now that they have a series of turnover relates and less money available overall and just the uncertainty it create, it's going to put a wrench in their ability to respond to those markets. >> i guess we were sort of wa warming up to this announcement

u. what would you give out of ten a rating for the w.h.o. and their handling of this crisis? was this decision by the president warranted? >> well the president's right in his criticism of the w.h.o i think he's right about china's influence in the w.h.o the w.h.o. was slow to disclose information about the crisis slow to push china that we still need to conduct an investigation of just the circumstances around the outbreak in china. and what was made available. china was chlslow o disclose th fact they knew there was human to human transmission with this virus and sustain ed community transmission that would have been helpful to know w.h.o.'s culpable in that. but you know, the w.h.o. properly reformed is better than the w.h.o. just out there not properly resourced so i would have preferred to try to make movesto reform it. you could have pushed the w.h.o.

admit taiwan to the world health assembly that would have been a way to push back on china through the w.h.o. there are other things you can do to try to put pressure on china rather than just pull the funding out of it. and i would prefer to see that but i think the president is right in that they're in badly need of reform unfortunately, we're just not going to get it. >> right, so here we are, wrapping up another week of reopening, the great experimentment we're seeing a record number of tests akrsz this country what parameters are rewowe lookg at in terms of how we can measure whether the virus is slowing, staying the same or worsening? >> well the good news is testing is going up. we hit a record number of tests yesterday. almost half a million. positivity rate, number of tests come back positive is going down so that's a good sign. we're trending in the right direction. what we need to be looking at is hospitalizations because as testing goes up, we're going to capture more cases so that data

becomes less reliable in gauging whether or not it's contracting. there were two weeks of declines in hospitalizations. they went up a week ago. when you look at the data over the past week, granted it's skewed by the memorial day holiday. you get less r reporting on holidays and over weekends, but it's going down again. not a lot. but from the week prior so good news and trend ng the right direction. i think we'll have a successful reopening. i don't think we'll see a major uptick in cases but i think there's going to be a seasonal affect here. it's never going to completely go away. probably the cases we're seeing now, the sort of 15 to 20,000 cases that we're turning over, we might see that through most of the summer. maybe goes down a little more in july and august, but sets up risk for the fall that we have a base of infection in this country and we could see a resurgence in the fall >> ken frazier, the merck ceo, joined us earlier this week and i felt like he struck a more

pessimistic tone in terms of when we'll be a widely available vaccine suggesting much more being middle to late next year as opposed to this year. what's your latest take on that when there will be a widely available vaccine for all americans? >> well the good news is that a the data we've seen confirms that we can probably develop a vaccine against covid. and we're investing in advanced manufacture iing so we may havee doses available in the fall to inoculate a large population i don't think we're going to turn over the large scale clinical trials we need to give us confidence to use them on a broad scale this year. i think it's aggressive and optimistic to think we're going to get through those trials this year it's probably a 2021 event because you have a large number of asymptimp toymptomatic peopl. that makes it so you have to enroll larger trials we don't know where the

outbreaks are going to be so we have to wait until the fall to start seeing where the disease is to start really enrolling patients in cities where there's outbreaks the determine whether the vaccine is working >> so quick question on the bridge to a vaccine, dr. gottlieb we're still awaiting a number of data points from clinical trials what are you specifically looking at what makes you excited as we see these treatment results? everything from antibody cocktails to anti-inflammatory drugs. what should we be looking for? is. >> well, we can have by the fall, we have remdesivir maybe by the fall, we'llhave some antibody based drugs. regeneron is working on that hopefully they'll have those on the market by the fall but will be dose limbed in how much quantity we have on the vaccines, i think we'll be turning over more data and i we see them generating high levels of neutralizing antibo antibodi antibodies, they bind to the virus and destroy it, those are hopeful signs.

the chinese vaccine produced them, but at low levels. the manufacturers are producing hire levels of antibodies. that's going b to be a really positive sign. >> dr. scott gottlieb, always good to check in with you to ch friday afternoon thank you very much for the info. >> thanks a lot. still ahead, thousands of service members and their families stuck in housing limbo ndiche wake of the coronavirus paem we'll have the details when "closing bell" returns i got an oriole here.

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>> as states reopen, the defense department said this week it will begin to lift stop movement orders at some military bases, yet travel restrictions in march have caused significant financial hardship for some military families. sharon epperson join us with the latest. >> service members will now be allowed to move to a new location and a permanent change of station in stages depending on local conditions according to the secretary of defense, but until then, some military families are still in limbo, getting double-billed for what may be their biggest expense -- housing.

>> they will be paying two rents or two mortgages within 60 days. we have a lot of people who all their household goods are in storage and have been for months and will be for many more months they have to buy clothes or rent furniture to make up for that. >> recent polls by the non-profit blue star families found nearly 1/5 of respondents with current permanent change of station orders said they have paid or will be paying two mortgages within 60 days andrea bordten and her two kids live in kansas and her husband is in korea. he was sent there in january before following orders to move to northern virginia last year they bought a house near his new base, but they can't move yet >> we put thousands of dollars into the house already we bought this house based on what he would be getting paid in northern virginia thinking that we would be getting that pay in

may. >> her husband's salary is going to change based on the cost of living increase in the new location, but andrea bordtner says until then they will have to dip into their savings to cover these additional expenses. >> i'll pick up to there, sharon epperson. concerns over zoom's privacy issues have dominated headlines amid the work from home surge. the results next week and we'll have a preview for you when we return ♪ ♪ mmm, it shows! so good. oh hey, did you say you needed help with investing? because i know someone who's really great. and you trust him? totally. yeah. we went to school together. i'll check him out on investor.gov. so, what'll it be? i'll just have the burger. before you invest, get the full report. check out an investment professional's background

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it's what we'll always do. >> welcome back. looking ahead to next week,

video. deidre bosa has the latest for us. >> zoom shares have doubled over the last six months even despite the security and privacy concerns that we talked about. so really it's priced for perfection here, though a few key question ahead of those results. one, can zoom keep up its momentum as cities and states start to reopen and companies bring back more people into the office two are rivals catching up amid the pandemic and remember, zoom saw a 30fold increase in daily meeting participants, but facebook, google and microsoft, they have all boosted their own videoconferencing tools to compete better with zoom, so could we see them better than to start ease into the market gains. this company will report thursday after the bell. back to you guys >> deirdre bosa. >> mike santoli, we have the numbers to look to

the epicenter, new york, new jersey will be opening in june not necessarily next week, but we're getting clarity on when that starts and what will you be watching for the markets >> the market has been anticipating this kind of moment and we will see exactly just what kind of return of activity the market is demanding in terms of justifying what the stock price was coming to and and it did show some rehiring going on and next week's job number might not be the market mover and it will be a line for perhaps as bad as this is likely to get, we hope, for this phase right now >> and one thing i'll just bring up, as well. the banks couldn't quite hold their strong momentum from the start of the week and the other thing to point out that kbw index up 9.4% mike for the week and flat for the month which highlights the level they were coming off of at the start of this week. >> exactly that was just a kind of mean

revergent, snapback move and we'll see if there's anything behind it, and for now it's too early to decide if there's been a regime shift as the overall rally, it it started to sputter at the end of the week. >> it was up half of 1% and we're out of time on "closing bell." "fast money" starts right now. fast money starts right now. guy adami, tim seymour, karen finerman and steve grasso. following strict nyse rules and requiring to wear a mask at all times while on the floor the income data and why the headline number may not be telling the first story and we'll break down how we can trade it one of our traders is saying namaste to this name and cannabis, we will find out what went wrong with canopy