25,500 lot to discuss regarding stocks and markets and the role of american business in addressing the sickness that has ineffect the country. i see president obama out with a post right now talking about not just the importance of voting but voting at local levels where a lot of police departments get regulated and monitored and we know what voting participation rates are like in this country on those down ballot names. >> that's right. if this is a sickness that our country is experiencing and we're talking about that in the social sense, i don't think this infection is recent. it's been here for a while i think technology, smartphones have allowed us to see it and see its progress or lack of regress in a way that perhaps we couldn't before. i've been thinking as we do about how to frame this in economic terms and i think this is about two things from my perspective. it's about uncertainty and

opportunity. at a fundamental level we have communities in this level that feel a level of uncertainty, how they will be allowed to proceed with life, liberty and the pursue the happiness from businesses when you have uncertainty that's not good. that's part of what this discomfort is about. the other piece is opportunity and i know ken frazier talked about this on cnbc earlier today, a question about who has opportunity in this country to advance economically what happens to economic mobility going forward education questions there as well i think as a country, if we're going to be as efficient as we can be, if we're going to be as advanced a we can be, we have to get the most that we can out of all of our people out of all of our resources. from an economic perspective to me, carl, that's where this needs to go. morgan, i know that there's been

so much going on this weekend, both on the streets and in business don't know what you've got your eyes on. >> yeah. i think you really hit the nail on the head, jon, and i think one of the things that's a little bit heartbreaking when you see some of the demonstrations across the u.s. and u.s. cities over the weekend turn violent ors aspects of them turn violent, it overshadows the bigger, deeper, necessary debate and discussion around things like opportunities that need to happen that being said, i think it also puts into from an economic perspective it puts into question when you talk about uncertainty what all of this means in terms of reopening not just for large businesses that were impacted and many of them have had to close in certain cities over the weekend but for the small businesses who maybe have been hit so hard and were not open or perhaps trying to reopen in the middle of all of this

a lot of comparison i saw on twitter and other media platforms over the weekend to the 1960s to the idea of civil unrest and late 1960s you had a pandemic, that hong kong flu, and then in the middle of all of this over the weekend, a major milestone in space i think that's part of the reason i've seen some of the comparisons. i would be curious to see how markets took all of that and the economics, the economic numbers, took all of that into stride back then and whether there are comparison to be made. >> i just mentioned the sense of opportunity its role in this and ken frazier as i mentioned was on cnbc earlier today. here's what he had to say about the opportunity gap. >> i get to sit on cnbc and have this conversation with you because of one fundamental reason when i was growing up in the inner city of philadelphia the social engineers in philadelphia at the time when

dr. king was leading the protests in the 1960s for reasons i don't yet understand decided to take a few inner city black kids, put them on a bus make them ride 90 minutes to different schools to get a rigorous education my class had 1400 kids in it there were 9 african-american kids i know for sure that what put my life on a different trajectory was that someone intervened to give me an opportunity to close that opportunity gap and that opportunity gap is still there >> that's ken frazier, the chairman and ceo of merck. i'm a half generation removed from him, but carl, i have to say, i feel similarly in that i had opportunity growing up in washington, d.c., that some of my peers did not and a question underlying all of this when it comes to the economy, when it comes to the markets, is in america with everything else that we believe and fight for, what do we believe about

opportunity within the context of today. >> it's so true, jon finding ways to scale that opportunity is one of the most important discussions we can possibly have. joining us the mayor of kansas city, mayor lucas. some 40 cities around the country had curfews last night, mr. mayor. i think you were one of them we'll talk about the long-term policy implications in a moment, but short term did the curfew last night appear to be constructive in any way? >> you know, i do think our curfew was constructive. it's good to be with you today we still had incidents after 8:00 when our curfew set in, but i think we have far fewer than you saw in a number of american cities we had far fewer incidents than on the saturday night previous we wanted to make sure there was a forum along the way for people to share their pain and emotion, and we did that. what i don't think we needed in kansas city or in any american city are people that are

breaking windows at a cupcake shop or people actually harming both the police or innocent bystanders or journalists. i believe our curfew helped reduce those crowd sizes and did have a positive effect >> are you echoing some of the comments we got out of minnesota and minneapolis over the weekend, that those that are causing the most destruction are not in line with the intent of the protests themselves? >> you know, i do think that this is a moment that should be centered upon the experience, in some way uniquely african-american experience in our country, what it is like to be afraid of police, what is it like to go out each day and know that you may be a threat not just from perhaps some person in the community, but perhaps from people who are paid by the public to protect you and your family i think that yes, the protests did kind of get far field from that

i think when you're looking at some of the movements that tried to corrupt the pure message, when you look at the folks that were the loudest advocates causing civil disowe bedense, those aren't folks from a lot of places i've known my entire life, those weren't the voices of my cousins who are doing successfully still limited by race i continue to find it frustrating and i hope it doesn't distort what is an important movement and moment for this country to improve black lives and save black lives. >> mayor lucas, i've seen a number of people and interacted with a number of people in recent days who feel that the violence that the breaking of windows is a boiling over of frustrations and, therefore, either understandable or

allowable understand the circumstances because other things haven't worked to bring attention to this. now i don't happen to personally agree with that point of view and it sounds like you don't either, so i wonder, what you say to that perspective and what community groups you have been in touch with in kansas city that have a different perspective on that as well? >> so i think i would answer that point thinking back to my own childhood. 1992 i'm watching the los angeles riots and then what happens. does the world change? not really do we change our issues of injustices, particularly brutality as it relates to that imposed upon black men no in fact, in some ways i think more astonishing we're 28 years out from the rodney king beating and seeing actually such excessive force it's lethal, lethal now right. it seems like in a way things have only gotten worse

so i don't know if riots alone were the answer. i think mass protests, i think civil unrest can be something that we can share with people, but i think what we need to do is actually get beyond just a conversation about this city had a curfew, this city didn't, they destroyed this many shops, they didn't, they burned this many shops, they didn't, and instead move on to the very things i know we're talking about today which relate to how do we support black businesses, how do we support things that will allow people to live equally in our country economically, public safety wise, health wise, when we think about covid, that's the sort of thing we need to do. i get being annoyed and bothered, that's why i'm in public service we need to do more. >> the way i'm thinking about this right now is in terms at least where it's economically framed of uncertainty and opportunity. ideally police are there to provide certainty for public

safety, for businesses and other things, to be able to operate and thus opportunity can flow. so i wonder if you see any models for how to either change or define good policing, to restrain incidents of police brutality, so that not just in kansas city but nationwide there is more certainty that perhaps can lead to more opportunity >> you know, i think there are some models. i think the city of -- well the problem is whenever you think of a model i think of an incident that creates a problem yeah, i mean we need to have more community-based policing. now that's a buzzword generally. but community-based policing isn't just having one officer or two who go in but having folks that go back to that time of knowing a neighborhood, not knowing a neighborhood for its crime, but knowing a neighborhood for its promise, that's one way that i think you

help to build it i think unfortunately there aren't a lot of models there are ideas and ideas that work for maybe one year or two years until it was skrapd and went to something else i think what we need to do is think about how we're training officer chauvin in minnesota, right, is trained to at least have his knee on a guy for some period of time he stayed on too long. why is that such a central part of training anyway, particularly if you have a subdued suspect. we need to fundamentally alter how we're doing it if you want to solve the problem get to the root of it. the root is how we built the police officer from day one. that's the work that we want to do the root may be how we recruit them as well that's the change i'm trying to see in kansas city and i think we need to see nationwide. >> yeah. mayor lucas, i wonder what you think the role of business and commerce in place like kansas city plays in all of this?

certainly when you talk about something like opportunity from a societal standpoint, i mean the ability to have socioeconomic mobility is so key to discussion as well at a time where this is this uncertainty, in the middle of this reopening efforts in kansas city, what does this process do to those efforts? >> you know, makes them tougher, to say the least in particular, because there are some businesses that were planning to open this very week today, and are not and are instead cleaning up. but ooe but i think when we talk about american business one thing that is important is an ongoing and sustained approach to procuring services and supplies from black owned vendors, black owned businesses, supporting those types of businesses. you know during our current covid stay-at-home orders the businesses most disproportionately impacted in my city were those that were small businesses that did not

have access to positive banking relationships. your barbershops, beauty shops be the businesses of the inner city were largely undermined i think recently by our stay-at-home orders which i found necessary and issued one, but that's the sort of relationship i think we need to build more of. how can you support that black owned vendor and whatever it is you're trying to do. it's not just a one off type thing. how do you make sure that you have supplier relationships that actually include folks from diverse backgrounds. it's something that can happen when people are doing public government construction projects we need to give it in a broader set of things to help support business which long term will help support equality. >> that's such a key point, but to your point about the closures and the stay-at-home mandates is there a realization now that maybe those shut downs acted as an accelerant for this frustration we're seeing over the weekend and a what kind of implication does that have if we

see a second wave? >> yeah. two different questions. one, do i think they were an accelerant for the weekend s the answer is absolutely not i think the accelerant for what we saw this weekend is the fact that literally every month, every month, we have a controversy where too many situations a black man has died. i mean on sunday alone we had not only the tragic death of george floyd, but we had the interesting situation between the coopers in central park a black man bird watching can have the police weaponized against him. i think in no small part everybody was so concerned because we knew if the police had shown up when he was there, there was a fear, threat, something bad happened to him beyond them just talking it out. that's our accelerant. in terms on the second point, will we see a second wave rising out of these protests, i thought about that before i went to the protest. i'm a mayor who actually went to

my protests and i talked to the people but i think, you know, when i was thinking about should i go or not, i said, i have a primary concern and that primary concern is to make sure that a community that is hurting can heal and there are different ways for a community to hurt and i think what i saw most people wearing masks at our protests, they were close, but is hurting us and can destroy us as part of the reason we saw so much pain this weekend was because letting these issues fester, letting this racial separation fester, letting this type of treatment we're seeing in every american city fester undermines us long term and undermining our country and businesses and all we stand for. >> quintin lucas, mr. mayor, thank you for your time. we hope you'll come back we're rooting for kansas city and any city in america right now trying to work their way through this thank you. >> thank you and now we're going to take

a quick commercial break with the s&p and dow just about flat at this hour, the nasdaq off about a third of a percent we'll be right back. a grandfather of 14. a newlywed... a guy who just got into college... that's why behind these masks, johnson & johnson scientists are working to accelerate development of a covid-19 vaccine, drawing on decades of experience responding to public health emergencies like ebola and hiv. for the life behind every mask, the clock never stops and neither do we. 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. deposit checks,

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from almost anywhere. yeah. this moving thing never gets any easier. well, xfinity makes moving super easy. i can transfer my internet and tv service in about a minute. wow, that is easy. almost as easy as having those guys help you move. we are those guys. that's you? the truck adds 10 pounds. in the arms. -okay... transfer your service online in a few easy steps. now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. welcome back historic moment for america in space as the spacex rocket launched two nasa astronauts to space in spacex's dragon named

endeavor in the first ever human space flight by a commercial spacecraft you can see that on your screen. picture perfect launch saturday afternoon from kennedy space center marking the first time humans traveled with a vip list that included president trump, the third sitting president to witness the launch of american astronauts in person elon musk's space upstart relanding the falcon 9's rocket first stage on a drone shift a few minutes after liftoff and bob and doug hurd told orbit in a 19 hour flight that culminated it the capsule docking in a high risk dance with the international space station yesterday morning, 250 miles above earth orbiting at 17,500 miles per hour a few hours later the hatch opened and they were greeted by chris cassy who has been on the iss since april and two russian

cause mow foughts and as i speak they are partaking in a news conference let's listen in. >> were there any changes we would make, i think was your question i don't think that there's anything -- [ inaudible ]. >> we're not hearing you let's move on. >> hi. thank you for taking my question and i'm glad to see you are all well up there. as you know, houston is the home to manned space flight and in many ways the people here who know you personally from tim ber grove, clearlake, those who have watched from nassau bay, webster, you know, seeing you train and your journey to get where you're at today, some of them may be like your sons who are younger and may be inspired by the things that you all are

doing. what is your message to those who are watching from houston, from all of these areas in space city what's your message to them? >> well, i think my first thing i would say about that is, you know, just never quit what you're doing this was an extremely long road for bob and i. we last flew in 2010 and 2011 and then when nasa stopped flying shuttles that was in the middle of 2011 and it's just taken that hard work and dedication over the last nine, almost nine years, to get us where we're at now back in launching rockets from the united states, back at space station docking to the front of space station where the shuttle used to dock and i would just say, take a message from nasa in that anything is possible. we had a really rough couple of

months and just to be able to show the country what the agency is made of and what the commercial crew program did and spacex did, i hope they take some pride and a sense of accomplishment of seeing that. >> i think for both of us also the houston area is where we call home now and it certainly is true that the home of johnson space center, the home of human space flight takes seriously that's our home, that is the home of human space flight we have excellent support there. i had a parade of appropriately interestingly social distancing individuals lining my neighborhood in the half mile or so as i departed on my way to the ellington field to head down to florida and i know ijust ha wonderful support and i'm -- to all our friends and families at home, thank you, guys for

everything and we just couldn't have done it without all of you. >> thank you so much i know that probably means so much to them god speed. >> let's go to a question from chris. >> hey, guys it's chris davenport from "the washington post. thanks for taking the flight and congrats on your flight. i will try not to leave you hanging this time. to follow up on the question about the ride, i wonder if you can walk us through some of the technological differences between shuttle that led to the difference in the experiences and then maybe a little bit more of what were some of the key moments during the phase that stood out to you guys? thank you. >> hey, chris. good to talk with you. i think just generically the falcon 9 is a liquid fueled rock remember shuttle had solid rocket boosters to start with and those burned very rough for the first two and a half

minutes. the first stage with falcon 9 were the nine engines and it was a much smoother ride because it was a liquid engine at that point. where the difference started i think for both bob and i and we commented on it at the moment was at staging and it was very similar to what you saw in the apollo 13 movie where they staged from first to second stage so the first stage engine shut off and then it takes a second, almost a second, might have been less than that, but seems like it took some time between -- >> all right that is doug hurley, bob behnken and cassy aboard the space station talking about the mission. bob and doug will join us exclusively tomorrow on "squawk on the street" at 9:30 after the

opening bell, their first one-on-one interview since making this journey over the last couple days meantime big win for spacex and commercial space overall as this ushers in a new era of human space flight comprised of public/private partnerships like this one we've seen play out here and what nasa administrator described as the commercialization of low earth orbit. perhaps not surprising to see even though spacex is privately held, some public names in the sector like virgin galactic and procure space etf ufo higher in sympathy today, also despite the fact that we're not seeing too much company specific news, tesla trading up 5% because i think when you talk about stuff like autonomously docking at 250 miles above earth at more than 17,000 miles per hour, i mean that's the ultimate self-driving capability in terms of elon

musk maybe some cross pollination in terms of investor excitement there. >> i think i also saw over the weekend elon tweeting a photo of a magazine cover from a decade ago questioning whether spacex could take on boeing that takes on different resonance today given what spacex has just accomplished and where boeing is. also, we watched the falcon 9 over the years, the fact that it was able to land that first stage on a drone ship at the same time as hitting this private space flight or commercial space flight milestone really remarkable. we can't lose sight of that. >> yeah. i don't know, carl, if you took it in, one of my favorite lines from the weekend was actually when elon musk took to the stage down at kennedy space center in a press conference and basically said the trampoline is working you will recall when nasa announced this program in 2014, years and billions of dollars in

the making, russia took to twitter to basically say, how is america going to get astronauts to space, a trampoline a little tongue and cheek response there >> yeah. listen to those guys, morgan, and you think about the math and the physics, the skill, the bravery, to even be there in the first place. it's inspiring adam jonas of morgan stanley on "squawk box" called musk the most important man in the u.s. space program and in his words maybe give the dude a bit of a break, given what he's accomplished against all odds. we'll keep our eye on that let's get to sue herrera in the meantime and get a news update this morning >> good morning, carl, good morning once again, everybody. here's what's happening at this hour president trump is holding one of his first events on the george floyd protests. he is on a teleconference with governors and law enforcement officials about safety after another night of protests around the nation's capital on nbc's

"today" show this morning, washington, d.c. mayor muriel bowser called for an end to the violence >> we recognize the people are frustrated and mad but tearing up our beautiful city is not the way to bring attention to what is a righteous cause. >> former president obama laying out a plan to secure reforms in the wake of george floyd's death at the hand of police. in an article posted on medium, his recommendations include a focus on peaceful protests and calls for state and local officials to lead reform and since 2015, officers from the minneapolis police department rendered people unconscious with neck restraints 44 times according to an analysis by nbc news several police experts say that number is unusually high you can read the full article on cnbc.com guys, i will just tell you that associated press is quoting

president trump as talking to the nation's governors saying, quote, most of you are weak and urging a tougher crackdown on violence we are going to definitely be watching that as it develops guys, i'll send it back to you >> thank you, sue. cnbc meanwhile out with a new cfo survey taking a look at what they see as the biggest risk to their businesses frank holland has the results. frank. >> good morning, jon more than 86% of u.s. cfos see covid-19 as the biggest external risk to their business this was taken between may 14th and may 28th before we saw many of the mass protests over the killing of george floyd around the nation even still about 88% of global cfos see the pandemic as having a negative to very negative impact on their company with about 5% saying it's still too early to know. so those in line in general. when many nations on lockdown or getting out of lockdown demand for goods and service has

slowed 46% of cfos saw a major decrease in demand from the u.s., a dra the mattic rise from only 2.5% in q1. a similar demand decrease from q1 to 2002 in europe when it comes to china demand that appears to be improve slightly 31% saw a major decrease in q2 the number falling to about a quarter. however the number of cfos saying their supply chain has been disrupted by the pandemic actually doubled quarter to quarter. the pandemic also disrupting how and where many employees work. 53% of our u.s. cfos say three quarters to nearly all of their employees are working from home now but they see that number falling to just one out of five by september 1st, the monday before labor day here in the u.s. the global cfos expecting only 10% of their employees will work from home by the same date morgan, back over to you >> frank holland, thank you. still to come why nike is

saying don't do it we'll explain that after the break with the dow and s&p hugging the flat line. stay with us - [narrator] at southern new hampshire university, we're committed to making college more accessible by making it more affordable, that's why we're keeping our tuition the same through the year 2021. - i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer and i said, "look, we can do this."

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that was nike's way of addressing racism in america this weekend the viral ad saying don't do it, a play on its infamous just do it slogan, asking americans to stop pretending there is not a problem with racism here at home joining us is legendary pr director richard edelman whose firm was named pr firm of the decade by advertising age magazine

richard, good morning. >> hey, carl, how are you doing? >> this is jon >> jon. >> i'm wondering what you think of nike's approach there and to what extent is it an issue, what companies are saying about the situation versus what they're doing with their dollars or with their advocacy efforts where do they need to go from here >> this is a moment for brands to stand up. brands connect us to culture, brands actually show us the better part of our spirit, and brands have every ability now to speak up about racism and violence i'm sick nd about what happened with george floyd and i am stunned that that happened in my america. brands can show us the way forward. the smart brands are already doing so if you're ben and jerry's, for instance, you're not just running an ad you're saying

you're going to employ people who served jail terms and if you're shea my signatuoisture ye funding businesses -- that's the way to play the game it has to be about action. >> i just happened last night to be watching episode 5 of "the last dance" where michael jordan had the line republicans buy sneakers too, about his not coming out against jesse helms in his home state of north carolina some people were disappointed in him in that. he was saying his role is hey, he's a business, he's a brand, and that's the position he decided to take. what about that? i mean jordan famously connected to nike, of course, but this is a very different tact that business is taking are there risks here, should the businesses go the michael jordan

direction or the 2020 nike direction and what are the puts and takes there? >> we're at a time very similar to globalization protests in the late '90s. you know, people going and looting stores last night are saying something important, which is i want to hit you where it hurts capitalism, pay attention. business has the opportunity to step into the void left by government we have every need to do this because two-thirds of people today are belief driven buyers and they exercise brand democracy every time that they go into a store. and they want to know that their brands actually speak up for them and stand with them, that they actually want a company that's decent, a starbucks that says yes, we will hire people of color and make sure they get the chance to participate in our economy and they did that five years ago. opportunity youth.

and that's continued and so the best part of business today is stand up and be counted because we're needed step into the void >> richard, this is carl it's good to see you >> how are you doing. >> for so long we've heard two things for so long, one is that brands don't want to be associated with any content that's controversial, they don't want placement that's controversial and the other they're nervous about alienating some portion of their clientele that doesn't agree with their message. what's happened to those two parts of conventional wisdom >> we studied this, carl, and found that people don't want news blackout. they don't want brands to go silent whether during covid or during this period of reopening america. they want to hear from brands. they want to have a good, quality source of information and they want to be inspired they want stories that they can

identify with. they want to be feeling as if they have a hope and future and brands uniquely can do this, especially with young people you know, so many young are looking for information on instagram, facebook, tiktok and the privileged position that brands have is having relationships and it's not about buying brands for status, it's about what they stand for now. again, the belief driven buyer will use pocketbook democracy and that's the indicator for brands to speak up and act and really that act point is the most important thing change your supply chain hire people of color make sure that your own senior executives are working on non-profit boards in affected communities so that they get able to serve those affected communities. >> richard, it's morgan.

it's important to have this conversation, for brands to strike the right messaging for their consumer base and society at large but also their internal workforce as well, right what do those conversations look like where that is concerned and as the ceo of a major company yourself, how is that playing out at edelman >> so i think that marvin ellison of lowe's had it right over the weekend, an african-american that talked about growing up in the south and he said you know, we have to be the best america and also donated $25 million to help small businesses owned by people of color the best way for companies to behave including our own is the ceo needs to communicate and have conviction and be consistent and be measured and so, for instance, last night i wrote my blog post to the edelman people about, you know,

this is the way edelman is going to play and we're going to donate time, for example, to city of chicago on the coming back from covid, but part of it is to talk about it as the city of colors, the opportunity of every community to participate because, you know, the best thing edelman can use is use our pr brand and other companies can do that with their best ad, whether getting people to eat better or exercise more or actually treat each other with respect. >> all right richard edelman, thank you for that perspective on the messages, and the actions that companies are taking during this broader crisis we're facing >> thank you for having me we'll take a quick break here dow holding on it 41 pnta oi gain on this monday. we're back in just a minute. it's hard to eat a whole pizza.

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mark zuckerberg for his stance on president trump's comments. julia boorstin has the latest. julia? >> morgan, that's right. a number of senior facebook executives publicly sharing their outrage at mark zuckerberg's decision not to flag or put a warning label on president trump's posts that could incite violence. the head of product design for facebook's news feed tweeting, quote, mark is wrong and i will endeavor in the loudest possible way to change his mind going on i focused on organizing 50 plus like minded folks into something that looks like change jason signatu jas jason sturman writing -- >> director of project management writing -- i'm not proud of how we're showing up. the majority of coworkerers feel the same way we are making our voice heard. facebook responding to this moments ago telling us, quote, we recognize the pain of many of our people are feeling right now, especially our black

community. we encourage employees to speak openly when they disagree with leadership as we face additional difficult decisions around content ahead we will continue seeking their feedback last night zuckerberg posted that facebook is committing an additional $10 million to groups working on racial justice. zuckerberg reportedly had a phone call with the president on friday now this all started when trump posted last thursday night on facebook including saying when the looting starts the shooting starts zuckerberg defending his decision not to flag this or pull it down saying, quote, i disagree strongly with how the president spoke about this but people should be able to see this for themselves because accountability for those in position of power can own help when their speech is scrutinized in the open. in contrast to this, the president tweeted something very similar, twitter did put a warning label over concerns that that could incite violence jon, back to you.

>> thank you still to come, the first trading day of june and we will speak with the chief investment officer chris alman on what to expect in the month ahead. we'll be right back. stay with us this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. ever something's gone mogotten into the office.m, i hear you. feels like there's no barriers between departments now. do you think everyone appreciates it? i do.

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yeah. this moving thing never gets any easier. well, xfinity makes moving super easy. i can transfer my internet and tv service in about a minute. wow, that is easy. almost as easy as having those guys help you move. we are those guys. that's you? the truck adds 10 pounds. in the arms. -okay... transfer your service online in a few easy steps. now that's simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. welcome back market trying to hang on to gains here still pivoting around 3050 on the s&p, guys. there is the hopes for treatments and we did get some

incremental news on new trials out of lily today. continued focus on government support from central banks and governments around the world, jon. the reopening in the construction leads you to names like united and gap and marriott and gm and harley leading the s&p. all of that is an offset to the concerns about the china trade war and the civil unrest from the weekend. >> true. at the same time zoom, the video conference provider cracking $200 a share, up nearly 13%. just past 13% this morning so, you know, that name continues to surge along with other tech names that have benefited from people's turn to technology during this difficult time apple, amazon, also higher this morning by a little bit more than the overall markets >> yeah. i mean certainly there's been a lot to digest here it does seem like reopening

efforts, though, do continue at least fractionally to dominate the market action, the trading action today you have the russell 2,000 up more than 1% right now and, of course, as carl mentioned some of the names leading the s&p higher as well we want to bring in chris alman of calstrs to talk about the market, chief investment officer, thanks for being with us today. >> you bet good to see you. >> as we just mentioned, there is a lot for investors to basically take in and assess right now, whether it is china, whether it is these protests and the civil unrest we've been seeing over the last couple days, whether the idea of a reopening and the impact to the economy, what are the things you are watching and what do you think drives the markets in the coming weeks and coming months >> morgan, this is the kind of day where it's hard to keep your eyes on the stock market it really doesn't matter

what matters is america and some of the discussions you've been having already i think all of our hearts are really hershey it -- heavy. it's a tough day when you look forward we still have a health crisis. mentionede treatments coming up this summer there won't be a vaccine until probably 2021. the economy, at best, will be 50% at capacity just like the restaurants. it's going to be very slow it's been more positive than a lot of people would ever expect. you've been talking about how similar this is to the 1960 or feels like the 1960s i've been around a long time i remember at the end of that era, there was the nifty 50. it's the six shelter at home

stocks we're in that same sort of market and unfortunately, the same sort of situation in our country. >> something you have talked a bit about is this idea of esg investing. given the conversation that we are having right now more broadly coming off of what has been a weekend of turmoil and pain for many people in this country right now, how is that shaping the way you're approaching, i guess, not only your outlook for the economy but your outlook for the market. is many something that will affect the way you make investments? >> i'm going back to the interview before this. i think the basic question he was asking is should businesses care the answer is yes. i think if a basis wants sbusi be long term, he referenced t

michael jordan that yes republicans by sneakers. you're going to care about social unrest. you'll care about a country divided and better opportunities for more of the population this is not just about a stock market crowd this is about employing americans across all demographics and companies really do have to care they have to care about esg, which is sustainability. people get caught up in the letters and the words but it's about company that cares about its brand. not today but for the next 50 years. those are the kind of companies we want to investment in they care about social unrest, division their hearts should break. it shouldn't be focused on the second quarter earnings or third quarter earnings they need to think longer term and they need to care. >> longer term is an important

fra phrase, chris. good morning it's john. i wonder what the perspective is on the impact of city budgets and how investors should think about that there's potential and expected devastating work force impact here when city budgets are hit the tax revenue isn't flowing because businesses haven't been open and in several cities you're seeing costs from damage over these riots and i imagine there are costs and police of time that will have to be considered how does that factor into whether you're looking at municipal bonds or other things that you're valuing from an investment stand point >> john, you hit it on the head. my state of los angeles feels like it's under attack santa monica was devastating

santa monocica is a bubble. he said he had to shelter in place with his daughters san francisco, here in sacramento the governor today shut down the state offices. we're working virtually. it's not that traumatic. we're already all 100% remote. that's just serious. the national guard being in some of our cities rolling around in their armored personnel carriers that is going to stretch budgets. our state had a surplus and spreading that over the next three years. you're going to see cuts we're getting a cut june 30th. counties, cities and states that are fiscally managed well that

have rainy day funds that cut their budget and don't spend when the good times but save it is really the key. our rates at the pension plan should go up but they will be flat again this year to help out school districts i don't think wall street appreciates that i'll pick on united airlines it's classic example the cities are going through the same thing where they are surviving but costs are still there. united still has airplanes, the gate loads and yet paying taxes. there's very few people flying on the airplanes united will not be out of the woods right now and they won't be out of the woods in february. it's going to be a very slow period very similar to the 1960s. very low gdp very tough economy

very range bound market. >> right i guess that raises the question, i'm not sure what kind of latitude you have in terms of plain global baskets but does this maybe europe seem anymore attractive vis-a-vis the united states >> i think that's where we're seeing some of the money come in europe is just not no good shape after brexit the southern part of europe is still having huge social needs the northern part is having to pay for it asia is weak right now the united states is the best dirty shirt people are putting money into the usa but i think we'll see that slow as we have the social unrest and more challenges our country is so divided. from an asset allocation point we're broadly diversified. we are literally slightly defensive, very sloesst close to our target allocations it's a point where people have

to look at their 401(k), rebalance it and try to stay fairly neutral i'm not sure it's time to bet against the usa. emerging markets are dirt cheap but we have been saying that for over two years they will get hit been this pandemic the vast majority of emerging markets are in the southern hemisphere they will be ill-equipped to deal with this virus you have to keep in mind when you look outside the usa it's dominated by japan, uk and look at emerging markets, it's dominated by china that's a huge question mark right now. is china a friend, a foe, an adversary or all of that rolled into one >> i'm sure we're not done talking about that very specific topic. chris, thank you for joining us today. thanks for your historical

insights as well >> my pleasure we're getting some updates on the president's comments to the nation's governors >> that's right. the president has been in situation room over the past hour and having a video tele conference members of the media about what the president has been saying to them on this video conference. the associated press reporting the president has told the governors most of you are weeak you have to arrest them. robert costa a washington post reporter is reporting that he is on the phone with a number of people who are participating in

in call. he says that some of the aids to the governors he's talking to the president's comments today as a rant. says he's talking about the need to dominate the protesters he's encouraging the governors to use the military to deal with the protests and calling the governors weak and urging them not to look like fools in face of these protests. some very tough language from the president of the united states apparently here to a number of governors around the country we'll wait to see what the governors and law enforcement agents have to say about that and any official comment we can get to the white house about what the president said today. what his message is. we're not expecting to see the president on camera in public today. this may be what we hear from the president today. this might just be it, carl. back over to you >> all right a stark contrast to what the president said a month ago today

about those trying to protest in michigan legislature houses. that they were very good people but angry. see them, talk to them and make a deal we'll keep our eyes on that. we'll watch the markets that tend to be having that are cards close to their vest as we have barely moved afternoon from 3050 let's get to headquarters. melissa lee today and the half >> welcome to the halftime report events weighing on the market. uncertainty about the coronavirus and reopening still major over hang. new trade tensions with china and a crisis in america. social unrest across our nation. protesters taking to the street. angry over the death of george floyd. just how much more can this market take following last month's incredible rally our investment committee today