good morning, protesters again taking to the streets of new york, los angeles, despite curfews in major cities. we continue to focus on finding solutions. starting this hour with new comments from target's chief executive. big market movers will bring you up beat numbers from one stay-at-home stock up 200% the market up another 260 yesterday. another 180 today. almost at 3,100 on the s&p wednesday, june 3, 2020. "squawk box" begins right now.

>> good morning, everybody welcome to "squawk box" on cnbc. i'm becky quick here with joe kernen and andrew ross sorkin. a gain of just over 1% the dow now at 25,000. now the dow is indicated up 162 points the nasdaq closed at its highest day. now about 2% from its all-time high that's the run you've seen since the lows back in march treasury yields. they've ticked a little higher the 10-year looks like it is yielding 0.75% crude oil prices yesterday, crude was up about 4 percent on this expectation that

opec plus especially russia will extend those cuts put in place that was good for 4% as seen yesterday. crude up by 1% to $37.16 all of this against a tricky back drop. >> it is powering higher we'll talk to a lot of folks that will help us through this the need for solutions former white house and ceo of

j&j and they have big news on all of this. getting an update of what has gone on. reporting a day of mostly calm in washington, late afternoon in st. paul, staging the protesters protesters ran past the curfew

refusing officers by governor cuomo for help by new york state police and national guard believing the mayor under estimates the scope. >> we are checking in with business leaders i spoke with brian cornell, the ceo of target. using the word unprecedented and admitted that is a word we've all used a lot lately. where target is based but spread quickly across the country for months now, keeping doors open with the latest unrest they've been dealing with this market by market, day by day and some cases hour by hour working with authorities to determine when they should close

storeserly and in some cases boarding up the stores they've had a you few hundred stores they've had to closerly the first focus has been on over 300,000 team makers that they feel safe and that it is a diverse and safe place to work that is something that was in place before his time there. discussing with them it ended up being a listening session. pointing to diversity statistics women make up more than half the workforce. and 30% of stores are run by a racially diverse or ethnically

diverse leader board of directors are 31% female a new warning from dr. fauci about how long immunity could last more from jarc&j and brian moyna from bank of america we'll be right back.

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dr. fauci out with a warning about thedurability of any vaccine. there is a chance any vaccine won't provide long-term immunity he said if covid-19 acts like other coronaviruses, effective immunity could last six months and almost always less than a year president trump has announced the united states will terminate its relationship with the world health organization. joining us now dr. scott gottlieb former fda commissioner and cnbc

contributor and serves on the board of illumina and pfizer dr. fauci saying any one with of these vaccines may not last or be as durable. and then the stepping away from the w.h.o. could lead to issues with the development >> this is probably a vaccine we'll need to take every year. dr. fauci is right it won't beimmunity like a small pox or polio or measles vaccine. you'll need to take this regularly, maybe annually. immunity might last up to a year it does appear people who have the disease and recover. it will depend on which vaccine you talk about

some of these like the platform that use viruss to deliver parts of the coronavirus those are the vaccines delivered by johnson&johnson those might stim lace the cell-based immunity. one of the things the w.h.o. it tracks different flu strains those get sequenced. we use that data every year, this effort, to make decisions about what strains to put into the vaccine. we are going to need something analogous for covid. it will probably undergo genetic

drifts we will want to know which are circulating to tweak every year to reflect the strains as they change agagenetically. standing up to the flu and an analogous process with regard to covid. >> when you start comparing this to the flu vaccine i get it every year. i try to get at least the tri one that protects against three different strains. it doesn't always work are we talking about a similar situation for the strains of the coronavirus? >> probably not. you'll get the vaccine every year probably the same time you get the flu virus. unlike the flu, it doesn't rapidly mutate

it will be more preserved. we've seen the portion of the virus we are using in these vaccines and the spike protein we've talked about i don't think that vaccine itself should by obviated within a season the kinds of challenges we've had the with flu vaccine in 2017, 2018, when the vaccine wasn't that effective because it had undergone changes. based on how we understand it now. >> doctor, just wanted to ask you what looks like, i don't

know if it should be described as a surge or up tick. looking at places like tennessee, georgia, texas. the numbers do look like they were going up. the question is how worry some that should be or not. they are going up. arizona, i would call it a surge. they'd 1,000 cases certainly seeing up ticks in north carolina, tennessee. texas doesn't report hospitalization numbers. georgia as well. states are showing upticks arizona is the most concerning i think this will be the new normal we might not see a new epidemic. we are going to see outbreaks in some states and some surging the rate is unlikely to go down much more.

a high level of infection to be taking in to the fall. that concerns me the most. we were never really going to get rid of it entirely falling to lower levels than they have over the course of the summer >> you look at a state like arizona and say to yourself, if these numbers are surging, do you imagine if you are the governor of that state or other official, that you'd say you want to go back to broader social distancing, closing down stores and work again? or are these surges that people are going to, as you say, live with and figure out a way to work around? and what's the threshold >> good question different states have set different tlesh holds. they are looking at hospitalization data and

relative total capacity. most envision their cases will go up and will see a rise in cases. it will be hard for a lot of these governors to go backwards. that sets up the risk. you will see officials reluctant to go backward in their perception they'll probably tolerate a high level of infection than the first go around. that sets up morris being that a state like arizona will have the outbreak and end up receding new york reported 150 hospitalizations yesterday the state of florida and georgia reported more than that.

new york is looking good there is a risk any one of these states could have an outbreak and end up receding parts of the nation >> did you see the report -- i guess minneapolis is now testing its entire national guard force after one of its members who had been out at these protests tested positive and nine others are showing symptoms >> we should be concerned. these protests and large gatherings are going to lead to spread some people are wearing masks. but it is hard to control spread within these large groups. we'll start to see this show up in the next few weeks that's where you get the most concern some of these states, the rev

lens was low the number of people in these gatherings was low in states where the prevalence was higher, there was risk >> thank you we'll see you again probably tomorrow okay more ahead morning movers new numbers out from the stay-at-home stock you got to hear about and depends on people going out again on the other side of it as we head to the break, take a look at the biggest pre-market gainers. we are right back after this

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welcome back we'll start with a look at the big stock stories. zoom showing better than expected results company nearly doubling as costs are rising sharply jumping about 200%

capping $61 million. the same as ge and now topping target as well more than a story stock at this point because of the fundamentals behind it as you sit, you might have another view you can just look at the chart lyft says demands have risen but levels remain well below 70% weaker but demand did rise rose 26% from april with gains in cities like new york. amazon planning an event for june 22 to jump start sales. didn't know they needed to jump start sales. been given the working title of biggest sale in the sky. amazon has asked sellers to

submit deals for items with a discount but it has to be at least 30%. >> i think the questions are around prime day which usually happens around middle of july. perhaps this makes up for the delayed or off put to prime day. the future pointing to more gains at the open. more to come up this morning including brian moynihan investor and chief of staff and ceo of j&j former microsoft ceo and soft bank's operating officer now let's take a look at yesterday's s&p 500 winner and losers these days, it's anything but business as usual.

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good morning up 177 points on the dow after

gaining some 267 points yesterday. in washington, lawmakers have allocated $150 billion as a part of the c.a.r.e.s act but not all getting where it needs to go >> that relief act set up two months ago many still waiting for the money. some have been drowning in red ink. treasury has dolled out $17.59 billion to places like los angeles, phoenix, new york. the rest went to states that then had to pass it on in 28 states, they haven't done so yet and that's left thousands still waiting in limbo

one is lexington, kentucky unemployment in her city has gone from 3% to 25% in weeks getting most of the revenue from payroll taxes and now facing a $40 billion short fall >> and saying, we are deeply concerned that our ability to provide things like public safety will be diminished. lexington has been a site of protests it's worried their pleads to washington will get caught up in the protests >> a lot of money still around big piece in the journal about that i'm ready. i guess it is on both sides.

going out an all the red tape. becky, i think you are going to take us to break okay thank you. when we come back, getting america back to work the latest adp data. at the top of the hour, we'll talk leadership and the path forward with bank of america ceo brian moynihan you can watch or listen to us life or any time on the cnbc app. a look at the scene yesterday as states reopen across america

. dow looks like it would open up 172 points higher nasdaq looking to open about 30 points higher. it is jobs week in america we'll get the adp private payroll report looking at this chart. the google trend search for jobless benefits the peak now trending down that's good news but does represent perhaps the remarkable state of where we are right now. meanwhile, protests continue as america tries to get back on its feet going to our guest, peter. we've had a running dialogue

with you now throughout this pandemic you can layer on top of that now the unrest in the united states. the market continues to move higher i'm curious to where you stand today relative to where you stood in the last couple of years. throughout all of this, you have been are relatively cautious >> i think the market will continue to trend higher here. the fed stimulus, central bank stimulus around the world. fiscal stimulus, prospect of the stimulus which the market expects will take place and the expectation of therapies and vaccines in the future all basically allow the market to continue on its upward trajectory there is clearly some risk out there that demand that

ultimately results and then markets will rise. tell me how to pick stocks or funds in this environment. we are now detached from fundamentals if you are going to be detached from fundamentals, how do you do this >> i think that, the reason why people are saying the market is detached is because of a very wide disparity because of certain leaders in the market between tech stocks and many other stocks in the marketplace

you have to get to the fundment 58s. some have shown that it is possible to find stocks valued attractively and to own those stocks also possible to find many stocks that are extremely expensive and continue to go up. one off the top in the news regularly. shopify continues to rise multiples of its revenues. that doesn't mean it will continue to go up. this is at a time you need to be disciplined in finding the stock and putting them to work there are stocks out there that do make sense.

so many of these tech companies moving over the past weeks and months where people have won the game elsewhere in beat up games or is that too dangerous right now? what the market needs to do is with leadership. that is fraj ill and continues to fall. showing broadened leadership and stocks that haven't gone up as much attracts the interest look, just the financials in the past week have been on a bit of

a terror up 6 to 12%. i haven't done the math. investors are becoming more interested in them that's not just in financials but basic structural and cyclical stocks and companies that were thought to have been severely injured by covid. between some reconciliation in that demand and the increase of the curve. that will not be the disaster we were looking at in march

looking at things that had been top of mind, what would they be? >> in the financial world, there are things to be found in basic consumer goods, companies that are well sitd waited with riskier things now there is plenty in the middle that investors could look at >> that doesn't mean the video games and the technology will crash. i don't think that will happen

>> that's the other question, do you put more into that even where facebook is, you could make a fundamental argument on behalf of that company oddly enough >> i think the question is will you get a return from that right now are you going to get a better return? i won't say that's a blanket case one quick thing. i think people are transfixed over the social unrest they are seeing un-ralphed and displayed in the world and there is a long history with the unrest that may

be unfolding not to say there are serious symptoms i think they are and need to be addressed. they won't affect unless they are some basic fundamental problem. >> right and finally, i mention international stocks and companies given the fragile state of this world, how do you even think of that right now >> i think it might be interesting. europe has tried to find the system to support weaker parts of theeuropean union giving

europe a better chance to emerge i think it is more attractive. >> always appreciate your perspective. >> thank you coming up, reopening america. later former white house chief of staff mick mulvaney will be with us. maybe he likes the action but what a time to try to do that. >> pandemic, civil unrest.

we'll be back. >> announcer: don't forget to subscribe to our podcast you'll get interviews, original content and behind the scenes access look for us on apple podcast or your foravite app and subscribe to squawk pod today.

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>> welcome back. we want to get you up to speed with headlines that opec plus meeting is in doubt over the dispute of oil quota cheating wti prices had been up on the expectation of the video conference as they would agree to continue with production cuts that may not happen. as a result, we are seeing wti pull back. that may have been higher. now down about 18 cents. joe? >> have we talked about we were near a forehandle on crude

>> a long way from $9. a long way if we are all constantly pointing to things that don't justify stock prices, we always seem to leave out well oil is back to 40 >> you do have the economy starting to open up. you look at demand and not only states opening up after being shut for so long maybe it does indicate vegas will be tough. investors have been betting on gaming stocks with names like penn national, caesars

you were like the main guy, the axe on wall street now this is you. why not go out on your own, right? good morning fascinating reading your comments things have gone too far too fast things gambling have been hit with a lot have hotels and sitting with and gaming with each other that's bad it is just a triple whammy of head winds how do they reopen >> it was the perfect storm on all fronts for las vegas and the gaming industry. there is a big push by every operator all the governments involved to

get gaming open. you'll see the beginnings of that in las vegas it is not the environment we had seen before plexiglass no restaurants close by. limited food and beverage in terms of nighttime offerings no shows i applaud the efforts to get open. my prediction is not one casino will make money. they'll get open but you scratch your head and say to what end?

>> why do you make a point it will be the low-end rooms that get filled up. you need the high end guys and gals to come in. why low end? >> since the terms of entertainment offerings. basically bare at the beginning. you look online and look at the hotels and casinos own websites, the discounting is incredible. wynn resorts for $99 everything else is priced underneath that. that's how las vegas typically got people to show up. i remember this after 9/11 and the financial crisis start price very low and see what happens price brings people. >> do you know how much, how much for that suite in hangover one, how much would that run right now, do you think? >> i think you could be

guaranteed it's the best price ever you got a shot of booking if you call on your break and lock it down >> tiger is gone >> tiger is gone >> what was that tiger doing there. now it all becomes clear for who comes back, is it geographic should i be thinking like riverboats or the ozarks or macao what about people with big online stuff because people will be at home gambling. how do we distinguish which ones are the big winners. >> big winners in my view are participants online. everybody is at home the online poker numbers have been spectacular the expectations for sports are absolutely amazing the stock price of draft kings seems like it goes up 5% to 10% every day in anticipating of

sports re-opening is certainly well positioned to take bets at home we're at a stay-at-home economy. eventually people will want to travel right now we've all been conditioned to work from home, and it might be over the near term more comfortable to sit at home, turn on whatever nba schedule we have on or english premier soccer league or any other sports including baseball that will try to get opened this summer and very easily be able to bet in the few sports markets that have legalized now but as sure as i'm sitting here this whole pandemic, this economic crisis will accelerate sports betting at home and by 2026 virtually every state in the u.s. will have some form of betting and that's been, in my view, the most exciting and the biggest opportunity for the gaming industry. the las vegas operators, however, they should really

watch the walmart model because the walmart model take land base, put it together with online and dominate and compete effectively against amazon those that don't crossover to online will struggle >> then you got to try to figure out nfl, no fans, college. are people going back to school. can you have ncaa. you got to think -- you don't know there all those question marks. so i don't know. for online betting i've been totally dormant. i've never done better in term of when i look at my balance at draft kings, i've got much better in the last three months. i haven't lost any money >> we're in the same boat, joe >> just sitting there. but sad. i've tried i don't know could i pick a nascar winner no russian table tennis, i was going to use the name, cool name, maybe that guy must being a great.

but it's hard. what are we supposed to do do you have any idea >> russian table the tennis. nba. >> bet on the stock market, i don't know anyway, thank you, jason we appreciate your time this morning. we'll be watching. andrew >> okay. coming up when we return, two big hours amade of bank of america, brian moynihan. u.s. futures pointing to another day of gains dow up 150 points if we opened up rhtig now we'll be right back in just a moment these days, it's anything but business as usual.

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this can help you cover your essential monthly expenses. learn more at protectedincome.org . it is official, we have the biggest ipo of the year to date. warner music group pricing their ipo today. it increased the size of the deal to raise nearly $2 billion. shares will begin trading on the nasdaq today under the ticker symbol wmg when we come back, huge lineup for you this morning, including the ceo of bank of america glen hutchins, former white

lveye chief of staff, mick muan alex gorsky, steve ballmer and marcelo claure from softbank

across america, business owners are figuring things out. finding new ways to serve customers... connect employees... and work with partners. comcast business is right there with you. with a network that helps give you speed, reliability and security. and enough bandwidth to handle all your connected devices. voice solutions like remote call forwarding and readable voicemail.

and safe, convenient installation. when every connection counts, you can count on us. get the connectivity your business needs. call today. comcast business. wall street continues to look beyond today's doom and gloom. stocks tried try to cap a third straight day of gains.

despite coast-to-coast curfews protesters once again taking to the streets. we'll speak to bank of america's ceo brian moynihan the pledge to fight racial inequality. and mick mulvaney about re-opening america and civil unrest the second hour of "squawk box" starts right now good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures we're in the green once again. we would open up 144 points higher on the dow. s&p 500 looking to open a little over 11 points higher and nasdaq looking to open about 23 points higher becky, over to you andrew, thank you.

bank of america announcing yesterday a $1 billion commitment over the next four years to help local communities address economic and racial inequality made worse by the global coronavirus pandemic. ceo brian moynihan said underlying economic and social disp disparrites that exist have accelerated and intensified during the global pandemic joining us now is brian moynihan brian, thank you for being with us today we noted yesterday this billion dollar commitment and i just wonder if you can talk more why you are doing this right now >> becky, thank you for having me on, first of all. you know, why are we doing this now? we're doing this now because, one, the horrible deaths that occurred just have incited anger

in our teammates and a worry in our teammates. they, obviously, wanted to condemn these acts but also they wanted to do something about it. the same thing happened in our community. as you know with the health care crisis, we take the community, consumer centric approach. it's consistent with that. it's how we run the company. the reason now is you're seeing two things come together one is the long held issues about opportunity and economic opportunity and things that have to be solved faster in this country and on the other side you see a health care crisis affect those communities in a more adverse way and affecting the broader society. we thought it's time to put up the money and doubling down our efforts to drive success >> how will the money be used? i know it's over four years and going to be used in some communities where you're already putting money to work. what kind of infrastructure do you have built right now and

what will those new funds allow you to do >> we've been doing a lot of great things take an example like housing we do $5 billion in financing for low and moderate community housing across the country the difference with this in housing, it specifically is -- there's money that's needed, more equity, harder money to find so in the case of charlotte, for example, we recently put money in land we own and equity leveraged with other ceos in charlotte who committed money that we raised a quarter billion dollars to build housing. we have worldwide expertise and in charlotte we opened an office with several nonprofits we work with to drive it health care we did a million dollars for testing, support for howard university. they needed the money to conduct

tests in the poorer communities, tougher number of cases coming up so they needed money to conduct those tests. we did a million contribution on health care which will be testing, contact tracing, clinics and other things we can do housing on the other end housing, job skills, health care crisis and also support to small businesses more importantly. >> brian, when you talk about this money going into housing is that money to build housing or is that money to finance loans that normally would not be approved or would have very high interest rates how does that work >> this is to build housing. have good affordable workforce house, but the difference is there's a large infrastructure that builds housing developers and other types of things but the question is where do you get the equity, where do you get the expertise. that's what rear thinking about.

in the case of charlotte, when you look at our opportunity task force, a lot of work aside from the current health care crisis goes back to the work that we've been doing over the years around opportunity, around economic mobility others have been studying this unfortunately our home headquarters, the last outfit, so a group of business community and other politicians and others got together and studied it. one of the outcomes was lack of affordable and workforce house so a group of ceos decided to double down and triple down on these programs and speed them up on the other side with opportunities around education reskilling people. we hired 10,000 people from low and moderate income communities in the last few years, a commitment to bring them in to work in the communities swerve we work with community colleges and others in high schools to start to develop programs for a

kro group of ceos. programs we have seen across the country just need more money now, create more opportunity and more mobility and that over the long term will help solve these issues it won't solve some of the criminal justice issues but solve the underlying economic issues >> i think all of us look at the events and what's been happening and we want an instant fix, an instant solution the solutions you're talk are things that really take time and play out over a number of years. how do you make sure that when things quiet down, when the streets are quieter, when businesses open up again, that that focus isn't lost? >> well, that goes back to how we think about the company in terms of -- we believe our company can have conversation and talk about things that are going on in society and affecting individual that can bring them to work and be who they are one of the other areas we're pushing is take that kind of

openness and conversations and dialogue and try to scale it across inside our company. and outside the company. things aren't going to quiet down they shouldn't quiet down in terms of making economic progress in the core social progress we need to make here. if you go back 50 years ago when the united states was in very tough circumstances around these similar issue, it's 50 years later, twice as many people working. united states made great progress but still we haven't fixed them, these issues we can't let it quiet down we have to keep pushing. doubling down our efforts we'll make more money available. i'm sure other companies as companies believe they have to be a part of the solution. we'll need more money working faster across programs across the country. but it shouldn't quiet down. we should not let it quiet down as a business community. we have to redouble our efforts to make progress so it does

occur and doesn't quiet down >> brian, you mentioned at the top that you had heard a lot of anger from your employees. what have you heard? who have you talked to what kind of things have you heard back >> we have formal and informal mechanisms, everybody in the company. they send me notes about their feelings and more formalized mechanisms in our inclusion networks and groups of teammates and african-american groups that come forward this program has been in development for a year, frankly, with those leaders across our company representing our company and our communities of color saying we just need to do more here and then with the health care crisis affect the community and then these tragic circumstances around these deaths and the fact that these occurred multiple times in the last few years including in charlotte a few years ago, if you remember we had a similar incident

so the idea with those teammates had formed this process. it was going along but then said we doubled the money that they were suggesting along with our ncac which is our community advisory group with leaders across the country we doubled it up so it comes informal by them having informal process and how we think about deploying our resources. it comes informally a lot of notes from people saying i'm angry, i'm fearful and i like the fact that i feel safe at work but i don't feel safe in my community. are we going say something are we going to do something that's what's incumbent on ceos not only say something but do something. this is a tripling of our efforts to do something. >> how many employees do you have and they all have your email address to reach out >> so does everybody in the united states. in the world my email is in the public

domain 209,000 and believe me after we announced the initiative yesterday they came back and are thankful we're not only saying sorry condemning the tragic deaths but we're doing something. that's the thing, if you go back to our conversations at davos over the years and even the last time we were together which seems forever ago, the conversation about companies need to serve their stakeholders, all the stakeholders and deliver both the profits for the shareholders, experience for the customers, experience for the teammates and community. you have to deliver for society at large and we run the company to deliver for our core stakeholders and society at large and this is part of that it's very consistent with how we run the company. we've talked about it across the years, and so they are coming at us saying let's put our money with our mouth is and the team design a program we think will

have a meaningful impact not enough money we need more money from a lot of people but it's a meaningful change and the trajectory of what we're doing and help with jobs training and skills and small businesses and housing >> brian, thank you for your time and thank you for your leadership on this we really appreciate talking to you today. >> thank you, becky, and thank you for continuing dialogue on these issues with our company, bank of america and the ceos generally. keep pushing we got to help capitalism solve some of these problems thank you. >> brian moynihan from bank of america. let's get to diana mortgage applications were out a couple of moments ago provide agnew read on the housing market diana, good morning. >> yep good morning, joe. buyer demand continues to defy expectations from just a month ago. mortgage applications to purchase a home were up 5% and

up a stunning 18% from the same week one year ago according to the mortgage bankers association seasonally adjusted index. six weeks ago these applications were down 35% annually another record low mortgage rate didn't hurt. the average hit 3.3% down from 3.42 that new low did little to entice current homeowners to save a little cash mortgage applications to refinance a home loan fell 9% for the week although still 137% higher than the same week one year ago when interest rates were 86 basis points higher but that was the seventh straight week in decline in refinance activity lenders are not offering the best rates on refi due to higher risk in the market but, again, those mortgage purchase applications up 18% from a year ago is a stunning recovery in housing. back to you guys >> diana, thank you.

it is pretty amazing andrew okay coming up when we return mark zuckerberg defending his approach to facebook's policy of free speech and the backlash that's been growing from employees. we'll discuss with a money manager who has been critical of zuckerberg's leadership. we'll do that right after the break. it started with a few smaller bills. fifty dollars here. eighty dollars. a hundred dollars. i had good health insurance. why isn't this covered? well, then they started getting bigger. eight-hundred dollars. eighteen hundred dollars. i saved for this. but not that much. i'm glad i had aflac. they gave me money when i needed it most. that's why aflac is here, to help with the expenses health insurance doesn't cover. i love that aflac duck. aflac! get to know us at aflac.com and their financial well-being. since our beginning, our business has been people.

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that's pretty funny. you guys see that. john bollinger you know him, becky? he was like an employee, i think. then back here for a while just had a trivia question on john bollinger, bollinger band haven't seen john. in a while wish him well. like forest gump i asked rick santelli the questions that generated the tea party which is in history books now. really didn't have anything to do with it it was just bizarre. >> stupid is as stupid does. >> that's what i do. just run, joe, run shares of twitter climbing in after hours trading. company announced in a filing it appointed former google cfo as the new chair of its board of

directors. stick with social media, which i know i couldn't, we have another story here >> the best part of all our lives, right facebook ceo mark zuckerberg is used to facing irate lawmakers now he's facing irate employees and he's defending his actions julie boorstin joins us now with more on that front >> reporter: good morning to you, becky that's right mark zuckerberg defending him in an all hand meeting for facebook employees which sources tell me was frank, intense and awkward the company telling us after the meeting quote open and honest discussion has always been a part of facebook's culture mark had an open discussion with employees today as he has regularly over the years he's grateful for their feedback sources tell me zuckerberg stressed the value of free speech on facebook which enabled the spread of the word about the killing of george floyd. zuckerberg saying the decision

not to remove president trump's post when the looting starts shooting starts was a tough decision but the thought process was pretty thorough in reporting from the "new york times". now zuckerberg reportedly saying their free speech policy quote shows the right action where we are right now is to leave this up then the decision was going to lead to people within the company being upset as well as would spark media criticism. now zuckerberg did leave the door open to making some sort of policy change. he said that they are considering something like adding labels to posts by world leaders that could incite violence zuckerberg's decision, of course, on this post prompted a digital walk out of hundreds of employees on monday. sources tell me that employees are still working on a list of specific demands for management. guys, back over to you >> julia, just wanted to get your sense in terms of this employee reaction how much

influence do you think that may or may not have on mark? >> reporter: i think, andrew this, is unusual to have this much criticism of facebook not internally because this is a company that's really known for having a lot of conversations. zuckerberg has these open meetings he's open to feedback from his employees. but to have so much criticism it becomes internal people resigning employees posting on twitter about their frustration with zuckerberg i think this is really peak criticism of facebook. i've never seen this much employee outrage before. i think, i would suspect that he's taking this very seriously. i'm not sure exactly how much it's going to influence his decisions because many would have thought if he was going to be influenced by employee perspective that could have had an impact already, but it does seem it's a fever pitch there in terms of employee reaction to what's going on and sharing that with the world >> just real quick, don't you

think even his signal or indication that in the future they could add some kind of labels to various posts in the future opens up that prospect which is very similar to what twitter did with the exception of that message that you just read but i believe that was protected -- not taken down fully i think you can still get access to it, right? >> reporter: the twitter message was flagged. there was a warning label if you wanted to read the whole thing you had to click on the warning label. i think zuckerberg will really stick firm to his commitment to free speech. the question is whether he finds some way such as say okay if you're a world leader we'll put some sort ofextra label on it. some sort of solution to flag this kind of speech if it's coming from someone with millions and millions of followers, still enable him not to have to label or go through or in his perspective censor the speech of 2 billion people who use facebook

>> the tricky part there's a view if you label everything, if everything becomes labelled that it loses its meaning if you label things, i hate to say this in a conspiratorial world we live in, something is labelled, there must be something else to it so i think there's a real back and forth how to do it thank you for that report. we'll continue this discussion right now about zuckerberg's leadership managing director at rg capital. good morning natasha, how much do you think this matters how much do you think this is a side show in terms of the investment opportunity here? >> good morning. i think it matters a lot i think it's disappointing to see mark zuckerberg shirk his responsibility by not removing or flagging the president's clearly dangerous and violence inciting speech.

i think you're already starting to see, you know, the campaigns for delete facebook yet again, which just shows that these issues can go clearly to the bottom line, impact facebook from a regulatory standpoint, from a brand standpoint, and can hurt shareholder value over the long run and, you know, sadly, i think trump and zuckerberg share a common trait, which they both operate like dictators, and are void of moral accountability and you're seeing that with employees speaking up and not getting, you know, adequate reaction from the ceo. >> look, there's a fair question to be had about whether corporations unto themselves should be run like democracies i think that our country should

clearly be run like a democracy and i know people can have that debate and we can have that as a separate conversation. within the context of facebook, and you look at what mark zuckerberg is doing and the position he's taking, he clearly thinks, by the way, he's taking, a, he thinks etaking a principled position i imagine not just on behalf of the idea of free speech but on behalf of the company and its shareholders you think this is bad for shareholders ultimately? >> i think zuckerberg's win, if you look at how companies are run i don't think there's anything wrong with the ceo structure, the chairman of the board, and shareholders having a voice as owners in the corporation. but, you know, zuckerberg controls more than 60% of the vote of the shares he's the ceo he's the chairman. and these are complex issues

and zuckerberg has shown us again and again that he's not great at addressing complex issues i mean we've had, as investors we've been ringing the bell for years on the hate speech, the sexism, the racism that has gone on over the platform, and this is not just a legal issue, it's a moral issue. zuckerberg doesn't get it. we have -- we really need a board member that does and that's why last week we had a proposal at facebook's annual meeting asking them to add a new board member with human and civil rights expertise >> well, i think the question i would ask, though, from the investment side of this is despite what you may look at and argue are moral failings of the company or moral failings of the company's leadership, the company and the business unto itself has held up and the question i would ask you, are you surprised that advertisers have not pulled their money, therefore?

are you surprised other businesses have not said okay i'm not going to do business with these people if you believe that the moral failing is as deep as you're suggesting? >> i think right now facebook has, you know, really has the opportunity to become a strong blue chip company. and there is from an investment standpoint a lot of reason to like facebook. the risks that we see and as you know, we look at environmental and social and government risk when we analyze companies. we see a lot of social risk and government risk. companies due for governance overhaul as i alluded to before in terms of the structure, and from a social standpoint we're seeing the fallout from that you know, the question is what happens in the future. will advertisers pull money? will the company be regulated? right now it's operating like a

monopoly there have been advances to say facebook should be broken up, even by, you know, early co-founders. and so, you know, the future is not written in stone in terms of facebook's dominance in the market we would like to see these issues addressed responsibly and consistently right now you're seeing -- you can't have it both ways. you can't say these are our terms of service on hate speech and violence and for individuals we're going to apply them or not going apply them to people who are powerful world leaders so what we really need to see is consistency in terms of service and addressing these issues because, you know, so far it's just been a game of whack-a-mole where issues pop up and people flag them and facebook runs to take care of the problem >> natasha, they are playing the music for us

as an investor you're still invested in this company >> yes we're long term investors. our goal is to see the company clean up its act we need a governance overhaul and we need a human and civil rights expert on the board to assist in that >> okay. well, it's a longer debate natasha we appreciate you being here we hope we can continue this everglades in the future when we come back a lot more still to come on "squawk". glenn hutchins will join us to discuss the market, re-opening mark and civil unrest and mick mulvaney former white house chief staff will be our guest his thoughts on the current situation in the united states and the president's handling of the situation. here are the futures at this hour we're in the green across the board. dow looks like it will open up 145 points higher. "squawk" returns after this.

in this national crisis in race relations a new cnbc change seven survey of battle ground state voters shows how black and white communities are living two very different experiences and steve liesman joins us now with more >> reporter: good morning, joe yeah the data we found supports other data out there from the cdc that black and white communities are experiencing very different outcomes when it comes to both the economy and the coronavirus crisis looking at the data, judging the state of the economy, 28%

nationally view the economy as excellent or good and that is same sort of numbers for hispanics and white americans but just 5% of african-americans judge the state of the economy as excellent or good 94% see it as not so good for the poor on the outlook, 16% of african-americans are very confident or somewhat confident in the economy in the next year and that's dramatically different. as you can see there from both national data we have and from hispanics and whites as well part of this seems linked to experiences with the coronavirus. looking at their concerns about it, 92% of african-americans are concerned about the virus compared to 69% nationally 78% for hispanics and 64% for whites and that seems to stem at least in part from personal experiences with the coronavirus which, again, are different when it comes to minority

communities. 61% of african-americans report that they themselves or they know somebody close to them who was diagnosed with the coronavirus. and that's 50% nationally, 53% for hispanics and 48% for whites a lot of different reasons for this and i read in the health literature out there there are comorbidities, joe, living conditions are another issue. poverty, access to health care is another one one thing i found striking, new york city comptroller report that shows 75% of front line workers were people of color you can imagine how that changes the experience with the coronavirus both going to work and then coming home and the possibility of exposure there. this really backed up in data showing that african-american unemployment has risen more in this crisis and again, both the death rates and the infection rates are higher in minority communities and we'll see, joe, if this ends up in forming

policy, economic policy in addressing some of the economics of this crisis that we're in right now. >> okay. steve, thanks. becky. thanks, joe. joining us right now via skype is north island chairman glenn hutchins and glenn has a lot of different hats he wears. i think this time i'll introduce glenn as the founder who gave $25 million to create the hutchins center for african-american research at harvard university, and then maybe most importantly the guy who was the creator of the beer summit at the white house back in 2009 that was the result of another situation of a black man being accosted by police and maybe looking for ways to kind of bring everyone back together with that beer summit. he not only created the beer summit but attended it as well

glenn, thank for being with us this morning >> wish i could see you under better circumstances >> glenn, this is an issue you've been thinking about for a longtime and you've been thinking as this, as an american but also somebody who is a leader in business and has been trying to find ways and solutions to it. what kind of solutions, what kind of answers, what can you tell us after what we've watched over the last several weeks? >> becky, i'll put it in context before i give you and answer to that particular question one has to understand and what i've learned from my interaction with the hutchins center at harvard scholars there is that we have a continuum of american history that started with slavery, but after the civil war and post-reconstruction was replaced with slavery with another name, share cropping, jim crow segregation then even after the civil rights movement that was replaced by the mass incarceration of a

whole population of african-american men with three strikes you're out laws. for those of us that live in new york with stop-and-frisk and there are also arguments, of course, that in recent years the current administration has been trying to roll back the accomplishments of the obama administration in health care and other places if you go back to the most recent mass incarceration and stop and frisk the main agent of that had between police in our cities it's been, as a consequence of those drug laws and other implementations, it's more common for african-american men to be in prison than to be in college. and that you have to under that's, first of all, in which it operates. historical context the second piece of this which is something that steve's data was going at is that over the course of american history

incidents like this that we're going through right now, the pandemic have been disproportionately visited upon poor african-american communities and other communities of color most recently the health care effects have hit the african-american community much more so that steve was saying. the essential workers have been more people of color and as steve suggested they put their own lives at risk showing up at the hospital and doing other jobs that kept the economy going. disproportionately borne the brunt of layoffs which is retail and hotels that have had to shut down disproportionate layoffs even some of the gig work like driving for uber has evaporated. they have borne the brunt of this crisis in ways that others of us don't understand and so it's no surprise that when an incident like this happens --

it's not just one incident, there was the jogger in georgia and woman in central park, not just one thing it shouldn't surprise any of us that there's protests. now maybe i'll stop there and we can take this conversation where you want to go that's the historical context is very, very important >> ah-ha andrew >> glenn, i have -- i don't know i have a question i'm trying to figure out how to grapple it i was on the phone yesterday with a very prominent ceo in america, republican who has been very outspoken over the years. also outspoken on these issues but he said look all of these companies we have ceos, press releases about all the things they want to do in terms of trying to help and stand on this particular issue but this ceo said ultimately this is as much a political

issue as it is anything else, that if african-americans can't go to work in the morning and can't go home at night feeling like they are protected that we have a bigger problem. that's a political problem what you don't see is executives, business people, maybe yourself, we can have this conversation right now, literally coming on television saying okay the real problem is with this attorney general, is with this governor, is with, if you have a problem with the president or is with these political leaders because that's -- we can talk about the economics of this but if you can't go to work or go home at night and actually feel comfortable and confident that you're not going to get pulled over and not going to be a problem it's all for naught. the question is what the role of business executives should be publicly in calling these issues out, really calling them out on television if they are going to

come on the air and make these proclamations about where they say they stand >> the argument -- very good obviously that's a very complicated set of issues we won't sort through right here. the argument i tried to make over the years to business people is having a stable social foundation in the united states upon which we can build our businesses is in their vital self-interest. even if they don't agree with me flo philosophically on the problem they have a vital self interest in having social stability in our country. having lived a lot of my life outside of the united states, my father was a diplomat, i understood that characteristic -- now our nation is in great division historically that's what promoted our prosperity. so there's a self-interest argument in addition to, a you know, broader philosophically argument i subscribe

that's one point point two, i think the insight of inside of what you just articulated is important because political equality, fairness before the law, and economic equality are all one thing in this community remember 1963, the famous march in washington where martin luther king spoke, by the way my mother attended that as a 43-year-old housewife in washington, by herself and it was titled the march on washington for jobs and freedom. this has always been about economics and political rights and they've always been understood to be one and the same as a consequence of which policies like voting rights, criminal justice reform, and gun control are every bit as

important as minimum wage, health care, affordable housing, and education. by the way, one of the most, i think, personally one of the most important things we can do is to equally fun education in our country. we have a country where there's a promise of equality but we have some public schools are like country clubs and other public schools are like tenants. we have to approach this, that's number one conthing i would say very quickly in answer to your question, andrew is business people tend to focus on this -- business people are deeply lly incented on their business they tend to only focus on these issues when it's in front of

them and in the way of doing business that's why people, you don't see the continuous application of their negotiations and capital to this problem. maybe now we finally have it in front of us that we can do it. but there are sorryened issues, a whole broad set of agenda issues the business community should get behind. but in their case if they don't believe in that philosophically and politically because it's in the best interest of their business >> one issue you would have the business community focus on right now, what would that be? >> well, i would say -- look, there's a whole agenda, becky, as i said. the broad agenda is just off the top of my head, voting rights and gerrymandering, criminal justice reform, gun control, minimum wage, funding the aca so people can have health care.

my lord the nation we would take away the aca is remarkable funding a means testing, social security so people can have a dignified retirement affordable housing making education fair. addressing additional divide building out -- >> when you start talking that broadly that's an impossibility. if you had one issue wanted the business community to focus on right now, just pick one when you start talking about that broad of a slate of things that's why things don't get done too many different things at once >> okay. our government does a lot and these are not all things that the government, business community would have to do you make a very good point two things i would focus the business community on probably would be education and affordable housing those are two things which happen often quite typically at

local businesses the problem with education is funding with property taxes. affordable housing is a community by community thing those are the two things i would focus the business community on. i would also make sure they understood bigger businesses, there's a broader agenda brian moynihan said today to their communities, communities of employees, communities of customers. >> glenn, thank you. i wish we had more time to delve into this. we'll have you back very soon and continue this conversation it is one that we'll have to focus on for some time thank you for your thoughts today. great to see you >> stay safe >> okay. thanks you too. andrew >> okay. when we return former white house chief of staff mick mulvaney will join us to discuss the "crisis in america" and finding solutions as well as the re-opening of america. watch shares of zoom the video conferencing service reported better than expected first quarter results helped by

the massive shift to remote work and cool "squawk" returns right after this

welcome back to "squawk box," everybody. let's take a look at the market. futures have been higher all morning long dow indicated up by 155 points that comes after the gains of more than 260 points yesterday and if you're looking that dow is at its highest level since march 6. s&p is indicated up by 1 points and its highest level since march 4th. nasdaq is indicated up by 24, almost 25 points it's at its highest level since february 20th and about 2 percentage points away from its all time high. andrew when we come back former

white house chief of staff and omb director mick mulvaney will join us. check out this lineup. we have alex gorsky joining us and then former microsoft ceo steve ballmer plus chairman of softbank, marcelo claure has some big news also on the cket we'll talk to all three of them in the next hour back after this with mick mulvaney

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after days of civil unarrest protests in the country talks turn to what it means for the economic recovery post-covid-19 and that outbreak. don't know if it's post yet. joining us now mick mulvaney former white house chief of staff and mick i said it a little bit tongue in cheek earlier, you're probably a little bit relieved that you're not having all this, you know, to deal with every morning but you still are involved you talk to the current chief of staff earlier this week? >> well, i do, and good morning thanks for having me i talk to mark relatively frequent people don't realize we're friends. we co-founded the freedom caucus together and the president and i have actually talked about mark as a successor to me when the time came for change so i do talk to mark

i think he's doing a good job. it's a small universe of folks who have been chief of staff to the president. it's not that big of a peer group to talk to i think mark is doing a really good job under really, really tough circumstances here in the first two months on the job. >> without getting into specifics, how would you characterize just his state of mind and what has he resolved to do and what is the president telling him to do about all these different issues >> yeah. i think mark has got theed idea of how to be a successful chief of staff and that's how do you make the president successful. you and i talked about this before, joe. we're not is going change. no one is but donald trump he's in his mid-70s. extraordinarily successful doing what he's been doing he's not going to change the question is how do you help him be as successful as you possibly can that's what mark is doing. the president came under some criticism this week forgoing

across the street to the church by the white house but that's a very trump kind of move he wanted, i think, to send a message that if we wanted to take back the streets, if we wanted to the end riots, we wanted to bring safety into our communities we have the ability to do that do we have that will is another question that's the message he was trying to convey. allowing the president to be president is one of the things that a chief of staff is charged with >> it's a very difficult period for the country, and it's a long simmering problem that we have that, obviously, the murder or death whatever you want to call of george floyd precipitated it, but whoever is sitting in that office at the time that all this is going on, all these protests and i don't know why some of it is rioting and looting, we have to said.

most of it is demonstrating and protests, but it lands on the desk of the president. how do you think the president and mark meadows are navigating through this because i can tell you this i watched the betting sites. i watch a lot of different things the betting sites have turned south quickly and joe biden is actually, has a pretty good lead on predicted and on composite of the other ones on real clear politics >> a couple of different things. i think probably first and foremost frustrated that covid happened when it did because keep in mind this is sort of lost in this a really discussion on the show this morning about policies and so forth, about the importance of having folks have economic opportunity. keep in mind you go back just two months ago and african-american unemployment was at a very low rate historically low rate. opportunity zones were starting to kick in didn't have a chance to have the

impact but they were there civil justice reform which your previous guest talked about has just started we thought we had a chance to put policies in place that would help solve this problem long term becky made a really good point that there's no quick fix to this but we thought we had some plans in place that would provide real and lasting improvement. that didn't happen because cognitive individual so i think now folks are trying to figure out okay how do we stop the bleeding right now. the house is on fire how do you put the fire out. yes, you're right most protests are peaceful but clearly not all of them are. how can we make it where folks feel safe to go back to their neighborhoods, safe to go shopping, safe to walk around their neighborhood this has to be bigger than any one man or woman, it's bigger than any one political party, obama was going to solve all

these problems and he didn't because he can't the president of the united states is not a magician and solve these problems by themselves at the end of the day we were on the right path how do we get back there as quickly as possible >> mick, how do you walk the line as president or as chief of staff between allowing every american to have his right to be heard about an issue that obviously needs to be -- we got a lot more work to do on this issue and yet the law is being broken flagrantly right in front of a lot of people that are supposed to be enforcing it. how you do not come down too hard on law and order. there's going to be, you know -- police, i think if they are getting hit with bricks they are hesitant to pull their firearms. in this day and age and in this environment, how would you try

to end the violence that really clearly is unacceptable for people that are living in the neighborhoods, people that have businesses in those neighborhoods. what do you do >> yeah. i guess, you know, i used to hear this during ferguson previously we have these difficulties from time to time we sort of hear it couched in terms of binary choice are you sympathic on one hand, sort of law and order on the other. it strikes me that's the wrong way to look at this. if i could advise the president i would tell him look law and order, safety and security is empathy. you don't empathize with rioters. you sympathize with folks whose neighborhoods are impacted folks from police brutality. there's nothing better than a good cop and nothing worse than a bad cop. if you're afraid of police in your neighborhood that's not safety and security.

safety, security and empathy do go hand-in-hand. if i advise the president, okay mr. president how do weprovide safety and security and convince people that means we're listening to them. that's what they want. i think that's what is it. that's what they want. people want to be safe and secure and want to have an economic opportunity people don't riot when they have jobs people are happier when they have money in the bank people are better citizens when they can see a good economic future for themselves and their kids how do we convince people we were doing better just as easily as two or three months ago and if we can calm things down, get the rioters off the street, restore law and order we can start moving again in the right direction. >> all right, mick we appreciate it thank you. i hope that the administration is successful in dealing with these things for all of us we appreciate it hope to talk to you again soon

thanks, mick becky? >> when we come back -- thanks joe. when we come back johnson & johnson ceo alex gorsky on the "crisis in america" and corporate response he's our special guest right after the break. later another special guest, former microsoft ceo steve ballmer. "squawk box" will be right back.

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george floyd, peaceful protests were the norm on tuesday but demonstrators in some areas did not obey official curfews. in the next "60 minutes" three giants in the american corporate world will join us to map out concrete solutions johnson & johnson ceo alex gorsky, former microsoft ceo steve ballmer and softbank chief operating officer marcelo claure final hour of "squawk box" begins right now. good morning welcome to "squawk box" here on cnbc i'm joe kernen along with becky quick and andrew ross sorkin u.s. equity futures about where they've been for most of the pre-market session up about 165, 166 points s&p up 13 and change nasdaq indicated up around 28

points or so after a strong session yesterday. strong session the day before. strong month in april. and may. let's look at treasury yields quickly. treasury is under .7 of a percent. we are continuing our search for solutions to the crisis of unrest and inequality in america and particularly the role of corporate america, the role corporate leaders can play we're joined by alex gorsky the chairman and ceo of johnson & johnson. j and j is the world's largest health care company. in a recent letter alex gorsky addressed the responsibility of the company to its employees to create a safe and inclusive workplace. alex, i want to thank you for being with us. >> thank you very much for having me on can you do kudos to you and joe and andrew with racism and connection to business and the economy and

frankly the public policy overall. i think it's a very important discussion for us to be having not only your business audience remember but frankly with broader america in general >> alex, i've been looking back at everything you all have been doing over the last several months to try to fight the coronavirus and i know we'll talk to you at some point soon to get an update on where that stand. but to have these events land in the middle of this, as a ceo i wonder how things played out, what you heard from your employees and why you're going about it in terms of how you're addressing it. >> sure. becky, underlying all of this many issues are connected. and, you know, as we've seen issues obviously play out with the coronavirus over the past several months, and then you put the compounding effect of some of the recent incidents of racism and injustice, you put that together and it just really, i think has created a

caldron, and has exposed underlying issues in our country that are very important for us to address i know for me personally and across our company, while we've been having discussions for a decade about diversity and inclusion and making sure that we're doing our role not only with our employees but our communities, and, frankly, having been in my role over eight years, with the company for more than 30, the tone and tenor of the conversation as of late i think has definitely reached a new level. like many other ceos have been commenting over the past few days, trying to be as connected as i could with the company and frankly over the phone over the weekend with employees, and to hear some of their stories, especially as of late from one of our most senior black leaders going to some of the most esteemed cools, served their country, have significant

positions of responsibility, telling stories about, you know, frankly being concerned in the last few weeks whether their son or daughter can go jogging in their neighborhood without them following behind in a car hit me certainly like frankly a punch in the stomach it represents how all these things coming together it's a critical time for our country and business to also be speaking out, speaking up about these issues >> alex, i want to focus on what you all are doing at johnson & johnson to try and do more than just talk about this too because it's one thing to have an open and honest and frank dialogue. it's another to put your money where your mouth is. let's talk about what you all have done and what your workforce looks like at this point. talk us through where you put your money where your mouth is on this. >> sure, becky the way you introduced it is

spot on. it needs to be a combination of what are you doing with your heart so to speak and what are you doing with your head what i mean by that is in my discussions with, again, with many of our leaders and frankly just people in industry that i've been connecting with, i think mission number one needs to be frankly creating an understanding of the way these events as of late have landed on the black community. and, again, in a very personal way, and in making sure in many cases particularly somebody like me as a white male that we're doing more listening, and i realize that can be difficult but i think there's no way that you can just move through a checklist without, i think, demonstrating empathy and an understanding of some of the deep seeded nature and experiences that the community has had and currently

experiencing but i think just listening alone as you said isn't enough and just as in business when we take on any issue there should be a plan, there should be objectives, there should be accountability, responsibilities, so that's what we try to do at johnson & johnson and it starts by having all of our leaders do a dialogue and just yesterday in fact we had hundreds of these around johnson & johnson involving thousands of employees where we talked we want to create a safe space where employees can bring their authenticselv selves, have a discussion and the freedom that's necessary to create a better understanding at the same time we introduced several important steps to make sure that we got actions aligned behind these values, and, you know, things like making sure that in our case as the world's largest health care products company we know covid-19 has had a significantly disproportionate effect on the black community

and on the minority communities so we want to go out and we want to find out why is that? what's the underlying nature what can we do better to make sure that, you know, your zip code isn't making or contributing more towards your life expectancy. we're committing more than $50 million. we added ten more to that to say what can we be doing in these areas to understand that fact better we're working with all of our suppliers and we work with more than 3,000 suppliers around the world. and we're trying to use our size for good and say what are you doing in some of these areas around diversity and inclusion how can we share best practices with many of them? then, of course, the other thing we're doing, we're very pleased we announced, we'll be working with the national museum of african-american history and culture. they have some wonderful programs regarding the history

of racism and injustice and how do we build on some of these iconic institution and we'll be doing more than $10 million over the next three years to try not only within johnson & johnson but more broadly in communities to frankly have these discussions and come to a better understanding. >> this is also a political issue and requires the political will and the public to make significant change do you think it's your responsibility, the business round table's responsibility to speak out directly for or against governors, attorney generals in this country, the coming president election on this specific issue. companies lobby as you know, including your own on all sorts of issues in washington. should this be something that your company is spending money on if you're stwangd your employees on this topic? >> that's a great question you and i have had an

opportunity to talk over the past several years particularly about the business round tables statement about the purpose of a corporation. and frankly a responsibility to obviously look up as a fiduciary responsibility but what's the impact you're having with the companies and customers. more broadly in communities where we're working, participating, what about our employees and having that as a long term mindset. i can remember when we first went out that there was plenty of criticism on both sides it's not just an either or framework. it's an and and framework particularly as you look out for the long term interests not only of our companies and communities and country and society as general. i think in this case, yes it is incumbent upon business leaders to be speaking out and to be participating in these

discussions. even some of the earlier conversation today i thought was quite interesting. there were many areas where business can influence policy. and based on discussions that i've been having recently where it's educational policy and some of the great work, for example, that have been done in that area about how do we seize this moment around the rapid transformation about the skills and capabilities in the workplace and how do we ensure our educational system keeps up. how do we use, frankly, some of the experience that we have and capabilities and influencing in washington around that important agenda because that's good for society but also going to be very important for companies but there are other issues related to social injustice. certainly areas around health care very important for yours at johnson & johnson. we can bring great technology and great new life-saving measures to bear but frankly if patients don't have access, if

they -- if it's not affordable then that also creates issues and last but not least i think the conversation earlier with brian, who i have tremendous respect for we co-chaired the american association ceo round table, his discussion about capital allocation, how we get better access to capital and whether it's purchasing home or saving or just frankly financial education, i think these kind of -- these are areas where organizations like the business round table can influence policy in very important ways frankly in the best interest of our country as well as business and society. >> alex, this is an incredibly important conversation and we would like to extend it. if you will stay with us for just a moment we do have the adp jobs report that's coming out in 30 second. we got hit that number and if you'll stay with us and bear us for just a moment we'll come back and continue this conversation adp jobs data for the month of may is about to hit. we've been watching the markets

and we got a couple of interesting stories. stocks are indicated up once again even after the dow was up by more than 1% yesterday. up now by 182 points three days in a row if the markets close higher today s&p right now is indicated up by 15 points. then there's the nasdaq which we've been watching closely too. only about 2% away from its all time high. highest level we've seen going all the way back to february, early february, actually also want to take a look at oil prices because there are some questions around oil prices on this too but right now let's get to steve liesman, he has the numbers on the adp >> reporter: thank you huge beat by adp huge and curious beat by adp, down 2.76 million and that's against a consensus forecast on wall street of job losses expected in the friday's job report of 8.75 million so i can't explain this. the april number that adp was

right on about 20 million job loss, adp losing about 800,000, service down 2 million looking quickly at the business by size down 435 for small, down 722 for medium and down 1.6 million for large businesses by industry the industries that have been hard-hit remain hard-hit 826 down for transport down leisure and hospitality which had been the leader but a lot of jobs had been lost there becky, i can't explain this. you had 10.4 million claims, use jobless claims in the move may 14 million between survey period mid-april through mid-may. it may be the jobs market is not as bad as predicted on wall street it may equally be that adp has somehow missed what's been going on in the jobs market. the market will have to figure out which one to believe ahead of the friday jobs number where the unemployment number is expected to be 20% and the job loss is supposed to be around

8.5 or 9 million >> very quick question we have to get back to alex gorsky does adp, how do they account people who are fur load and anticipating they will be brought back to work soon? >> reporter: i think that could be an issue if they remain on the payroll not showing up there and may show up as job losses. i believe furloughed workers are also counted in the report as well so there are issues about the status of individual workers in this particular time look, nobody has been through this before, becky, these kind of numbers are way out of sample with the kind of numbers we ever had in terms of job losses or that wall street has tried to predict. big errors are possible here i suppose also big it improvement but i'm on the errors plaination. >> okay. thank you, steve let's get back to alex gorsky. alex, looking at these numbers as they come in, the jobs claims

or jobless claims, it does get us back to the point that coronavirus and the economic impact of the coronavirus are taking a much bigger impact on not only communities of color but all communities in need. those who are the hardest off are the ones getting hardest hit. what can business leaders do to try to address that, that particular problem and what would you suggest to your peers? >> look, what i would suggest to my peers and frankly an important point of discussion today, we got to make sure that we're getting support for where it's most need look, while you and i can have this conversation today, you know, vis-a-vis zoom and many workers in large organizations are able to continue, if we look at 50% of the economy, that frankly has a hard time, even able to come up with a $500 check to take care of a bill or we look at a part of the economy

it's the small businesses that is paying tomorrow's bills with today's receipts, clearly those have got to be priorities for us particularly as we continue to maneuver through this period as we think about ongoing financial assistance, i think making sure we get it to those front line workers who are likely most exposed is going remain critical and i think secondly we got to make sure small businesses who are employing so many ofthose people are also getting the help and the assistance that they need at the same time because, you know, frankly, without that kind of support we're not going to have the confidence in the economy going forward. it will have a disproportionate share. we know that from statistics in minority communities so over the next several months we got to make sure that we're really focusing on those two particular segments of the economy. >> alex, i want to thank you for your time today. obviously, this is an issue that

you're going to continue to focus on we will too. so we appreciate your time and we look forward to updates from you. >> thank you very much, becky. >> okay. alex gorsky, the ceo of johnson & johnson. andrew >>. thanks, becky. we have two more big interviews coming up right after that great interview with alex gorsky you don't want to miss first steve ballmer on re-opening the u.s. economy. the second softbank's marcelo claure on a new fund that's only going to invest in companies led by people of color softbank just announcing that this morning it's all ahead stay tuned you're watching "squawk box" on cnbc usaa was made for right now. and right now, is a time for action. so, for a second time we're giving members a credit on their auto insurance. because it's the right thing to do. we're also giving payment relief options to eligible members so they can take care of things like groceries before they worry about their insurance

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welcome back to "squawk box" adp, the employment data for the month of may showing a loss of 2.75 million jobs and that was much less than expected and got a little bit of a bounce in the futures. we're now up a little bit over 200, up 214 points you might think, maybe the futures over the stock market already reflects some surprise to the upside, given on where it's been trading recently even though it may not have been that obvious. becky. >> yeah. i mean it's interesting we're talking about down 2.76 million. they were looking for more than 8. more than 8 million and that's a huge difference if you're talking about a quarter of the number of job losses that might have been anticipated. we'll get some additional numbers coming tomorrow from the jobless claims, the weekly jobless claims and then friday

we'll get a look at the monthly number so that will give us other data points we can bounce off too when we come back, steve ballmer joins us for a conversation on roles america's companies can and should play in closing the inequality gap we'll ask him about president trump's provocative language on social miaed stay tuned, "squawk box" will be right back to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us.

coming up when we return two interviews you don't want to miss first former microsoft ceo steve ballmer on re-opening the american economy and the role of tech and softbank ceo marcelo claure on getting more funding, venture capital funding to people of color. softbank about to put $100 million to work doing just that in an announcementhis tmorning.

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welcome back to "squawk box" right now we want to get to another giant in the business world as we continue to talk about finding solutions to some of america's thorniest problems race, inequality and the coronavirus and re-opening the economy. we're joined by steve ballmer former microsoft founder and chairman of the los angeles clippers steve great to see you this morning. we appreciate your joining us. i know you have lots of thoughts on where we are in this world these days and given the work you've been doing with usa facts looking at data it may be surprising for viewers and hopefully we can talk a little bit about that because you really dug down and done some really interesting work on how covid has spread across the country, how dispr disproportionate it's been and how money is getting doled out

or needs to get doled out and how to do it fairly. >> great thanks for being here. you're right there's so much monumental going on, certainly the most monumental set of things ever in my life and sad about covid and now very sad and angry about the issues of discrimination and race in our society. but the numbers are an important part of really getting there and our government, the only numbers that ironically i want to believe are published by our government and our government has a treasure trove of information to help us understand what's going on and over time make decisions and drive better actions whether it's treating viruses or ensuring we're making progress in the african-american community. >> steve, i know you've been digging in to a lot of these

numbers. what's the most surprising that you see? >> sure. let me give you a few. i'm going to give one just because of the issues of this week of protests, et cetera. you take a look at the numbers and people, i think, the general wisdom is, and it is correct, higher incident of covid is striking african-americans than other parts of the population. but when you think about a state like south carolina where 29% of the population is black and 53% of the covid cases are affecting blacks, it's something you got to understand. that's not just a function of poverty and recent factors, it has a whole history, if you will, behind it. if you take a look at job loss, in new york there's been about 109,000 case per 1,000 people of

covid. in hawaii that number is 46 out of 1,000 we did a crawl, andrew, across all of the states and actually all of the counties, sifting in in and out of government records to build a database to help us understand that. we partnered with the cdc to provide them with that county by county look. but you take a look at new york and hawaii off the top, you say well hawaii is in very good shape. if you ask the question who is getting their jobs most impacted, in new york there's only been a loss of about 8.6 jobs for a case of covid that number is 232 jobs per case of covid in hawaii. it helps frame up for us where we need to act, who is going to need support in the economic recovery l.a. county 3% of the population 3% of the cases. chicago is 1.6 puerto rico of the population, 4.4% of the cases. how do we frame and understand what we need to do with recovery

money going forward, particularly now that we start talking about bail outs at the state and local level. >> well, steve let me just ask you about that we had a debate with rick scott yesterday whether you want to give more money to places like new york or frankly you talk about a place like hawaii that on its face doesn't seem impacted so much in terms of covid unto itself but therefore but because it relies on tourism all of a sudden economically becomes challenged so you look at it and you say to your self what >> i take a look at it and i'll just give two perspectives we all know there's been a lot of job loss. i think people know that it's hit disproportionately certain industries like hospitality and leisure like food service. but there are other tries that have also been dramatically affected we can think, for example, personal services, barbers, hair

cuts, everybody says hey i want to get a hair cut. believe me the people in those industries need support and if you look at what's happened with the paycheck protection program that money has already gone out unevenly if the goal was number of workers per industry, industries like health care that have done okay it's the number one employer but only the fourth biggest recipient of the ppp money you look at something like personal surfaces which has not been supported you go to the state level and this is where i think the politics are going to be whoa. there's $8,500 per citizen spent on average across the states the 72% is in education, transportation, medicaid and other health care supports for lower income people and pensions to government workers. that's 72% you can say, who should we

supersnort new york spends over $14,500 compared to the average of 8,500 idaho 5,500. you take a look at all these things you could say what percentage of any one of these governments is funded by the feds the feds account to up to 40% of some states spending but as low as 19%, for example in illinois. are we funding the state by the needs of their citizens? are we supporting states by the amount of money they currently spend? by the number of workers who are unemployed in their states and the issues will be debated the thing that will frustrate me is if people don't anchor the discussion in the information available to them. >> steve, i love that you are putting this together. i think part of the problem with how this is all happening, you know, it's happened so quickly you look back at where we were just three months ago and then trying to come up with a plan

like the ppp, trying to figure how to get it out, it's amazing they did everything. these facts are so important, how you inject that into the conversation at this point so people can sit back and say okay this makes scene i love the points you just made. how do you make the leaders on a national and on a local level sit up and pay attention to that >> well, i think one thing is to dig in as i said we dived in, we worked with the white house task force on corona because when he the best data available. we worked with the cdc all we're doing is digging into government data and trying to give it visibility i think it is just super important that people not just espouse the principles of their party, but really ask where people will have the need and what is quote fair and argue from the facts and make being sure that every day we put them out there. thesewill be significant

decisions. we looked a lot at what happens to less fortunate, less affluent people the states pick up a bunch of that burden and will they be able to continue doing so. >> steve, we should, by the way, encourage everybody who is watching go to usa facts because you can see it, do a deep dive yourself but i want to broaden this out and ask you this. when you took over the clippers, you took over the clippers because donald sterling was banned by the nba over racism and the reason i mention that is, i would just ask you as a leader and a business leader what you think the role of a business leader is supposed to be the nba has taken some very big positions on these things. talks about racism very openly. and talks about what needs to happen we have a lot of business leaders coming on our program talking about these issues but it's unclear sort of how far they may or may not be going and i ask you what you think should

be happening >> yeah. let me give three quick perspectives number one, i have seen this now from the standpoint of a public company and a private company and i will tell you both have distinct responsibilities. obviously some things are easier to do in a private company but it doesn't let public companies ceos off the hook on this issue. public companies ceos focus, it is on just about every ceo's agenda and yet really dialing that up now to the next notch. not just the notch that says let's have the conversation. we need to have the conversation we need to do implicit bias training we need to make sure we're hiring diverse slate of candidates how do we stimulate more action. how do we stimulate advocacy, volunteerism, donations for not for profits. how do we surface the

organizations doing the good work that matter in this area whether it's in criminal justice or help improve the percentage of black teachers in the schools or police reform there's so many things going on and i think it's up to our ceo community to be part of lifting that up and one of the big issues has been it's all been black leaders historically talking about these issues and it's time for white leaders to stand up and really speak and encourage action >> let me ask you to weigh in on perhaps the big issue in the world of technology and social media which is what facebook and twitter should or shouldn't be doingabout disinformation but specifically about information coming from government leaders as high as people who, of course, are in the white house you tried to buy facebook i should remind viewers many, many years ago when you were running microsoft. so you should have a take on

this, i would imagine. >> yeah. i do first of all, let me be empathetic to people that run those companies but empathetic to the government regulators who need to wrestle with these issues free speech really is a thing and needs to be protected. hate speech has no place in the world of social media, nor does speech that stimulates violence. but having software to be able to distinguish those things is very difficult and, you know, one much the things you could think about not only is how do computers do this work, what is the artificial intelligence that's require, but for folks with big follower bases, you could also do some hand curation and people will not like those judgments but whether those judgments happen by human beings for the people

with the largest following on social media, or they happen by computers, there will be judgment that goes into that and there certainly are folks out there who i think are, are doing the wrong thing in terms of what they are saying on social media and, yes, there's a right to free speech but not all free speech is protected under our laws you think mark zuckerberg keeping the president's post up is handling it right, wrong? >> he handled at any time way he handled it and he's transparent about the way he handled it. i would say that dorsey is also at twitter transparent about what he's doing. and i'm glad -- i'll be honest i'm glad they are doing different things i'm glad people now have to focus on this as an issue. and, you know, i don't care who it is including our president engages in the wrong kind of

speech, that encourages behaviors that are not appropriate then there's something to be done about that. i know there will be people in the country who disagree about what's happened. the tension between facebook and twitter has put more focus on this issue which i think at least in the short term and practically is a very good thing. >> okay. finally you got to help us, tell us about basketball. when are we going to play? what's going to happen how will this work >> well, i can tell you the league office, the nba league office is thinking about that. preparing plans and deciding whether there's a there there, and there won't be an announcement until there's an announcement we have very good professionals, adam silver and the staff. let me just say my enthusiasm that i haven't seen the last of the 2019-2020 clipper team, my

enthusiast is growing. >> you're moving to snorld have you scouted out any real estate or to at least rent for the next couple of months down at the complex at disneyworld >> well, i'll tell you this. microsoft sales meeting i played basketball and those basketball facilities down there at disney they are not a bad place to hang out and i hope i get plenty of opportunity, andrew. >> okay. steve, we always appreciate spending time with you you are doing remarkable work with usa facts we encourage everybody to go check it out because it really does ground this conversation which is such an important one in america right now steve, thank you again for joining us >> my pleasure thanks for having me, guys >> you're welcome. coming up an interview with marcelo claure -- becky.

we remember that one incident. that was more than enthusiastic. marcelo claure will invest in businesses led by people of color. don't go anywhere, "squawk box" will be right back

let's get to cnbc headquarters jim cramer joins us now. jim, have you looked at those numbers, those adp numbers and do you have a explanation of exactly what happened or can we take it as face value. >> i'm going better than we thought it would be. there's a lot of end enthusiasm.

what we're seeing with housing, people want out of the stiff, people want cars, people are afraid and reacting in ways that i think are very, unfortunately, ant ant antithetical there's flight from where we need information see it has to do with housing numbers. what we see on tv and the idea that covid is not something we've beaten so we got to get away from. so it's a little -- look you always want to see higher employment but the trends might be spurred by things that we don't want >> it was a couple of weeks ago, remember i would see anyone together, three people, four people, or there was the lake of the ozarks, i saw that

now i see what's happening and for me i just can't believe it i can't believe it in terms of the crowds are huge. and they are next to each other. and there's some mass but not a lot. do you think that night follows day we're going to see a resurgence of covid or are you hopeful that we're now in the summer and maybe it's not -- it becomes more seasonal. what are we supposed to expect >> the science said droplets can diminish in the summer i would tell you, joe, a lot of people in the north you wait until you do those crowds. i think that while test supg and numbers are up, they are significantly up as far as i'm concerned. if it goes to two to 2.2 is big. a lot of us are surprised. the next thing that's challenging is social

distancing i can social distance en masse but the science has let us down or the interpretation of science because a few weeks ago we were saying look out there's big crowds and now the crowds seem have hurt anything yet i want to be optimistic and hope they haven't, but i think the more we see that, the more we'll realize we're choking nonessential industries and nonessential companies in the northeast and it's a travesty. >> we don't want another spike, but then do we have go back and say we've closed down too much i don't know >> i think you and i would believe we closed down too much. >> right >> it's just a shame a lot of the smaller businesses they can't open and they can't thrive >> i'm not going to be cynical and say, gosh, media got a -- i can't believe we can abandon one

news cycle to move to the next how did that happen? >> the scientists, i don't say they let us down they're looking at the science at every turn, joe, you're a scientist, at every turn they gave us a heads up and the heads up didn't really pan out >> we ran with it, too >> yes, we did >> thanks, jim >> absolutely. >> andrew? >> softbank making a big announcement this morning, a 0 $100 million opportunity growth fu fund joining me is the ceo of softbank good morning to you. i will start with you, marcello. when did you put this together and walk us through what you're imagining this is going to be. >> hi, andrew. so good to be here so, we did this in record time

we started about 24 hours ago. we see everything going on in our country, basically we spoke to masa son about the privilege that we see at softbank, being one of the largest tech investors in the world and we needed to do something big about it the whole thing is do something about it i see a lot of people have good intentions, but i think each one of us needs to contribute to make change in america that's why we decided to launch the 100 million opportunity growth fund that is mainly focused to entrepreneurs and founders of color, we have plenty of them and we thought it was the right opportunity. >> i should say, this looks like it's the two times as large as the next largest fund, and a lot larger than just about everything else behind that that's focussed on this world. silicon valley has long been,

frankly, too white stacy, in terms of just what type of investment do you think can get made in terms of people of color who are entrepreneurs, trying to get money and don't have access historically, how you're hoping this will change things >> yeah. first let me just say, i'm hurting, my community is hurting, the black community is hurting. there's a lot of pain out there. it's time for action and for change i'm proud to stand with marcello and softbank in creating this fund there's so many great entrepreneurs out there across this country, not just in silicon valley who are building great businesses and innovating. we plan to make investments in those entrepreneurs. we plan to find those founders and help them grow their businesses to the next level i think taking a step in the right direction and taking

action right now is the most important thing that we can do opening up a fund of this size will not only give us access to more founders and entrepreneurs but also help those founders and entrepreneurs who already started companies actually grow those businesses to the size and scale that we need to see the change that we want in our world. >> right >> paul, softbank is often focused on tech oriented companies historically what kind of companies do you imagine trying to invest in? >> i think the range of companies that entrepreneurs of color can unlock and discover is boundless. it's not only problems that other entrepreneurs may overlook, but sometimes just the conditions of surviving in this world. this world is unfair the conditions of surviving in it as a person of color gives you the attributes of being the perfect entrepreneur

you drink big, work hard, perseverance, there's grit, determination. so it's really about kind of finding that talent that is everywhere and bringing opportunity to them. and what the research has shown is that it actually pays out it's not only the right thickngt do but the profitable thing to do companies that have founders and executives that are people of color actually deliver a return that's 30% higher than their counterparts >> that's what i was going to ask you. when you look at the expected return of this fund versus other funds, do you think about it differently? >> we think of it the exact same way. it's traditionally harder to be funded if you're a man of color. i experienced it myself when i was growing brightstar and brightstar was an incredible company. there was a level of distrust when you wanted to pitch to your

venture capital. so we'll find those entrepreneurs or they can find us easily, they can bring us their business plans we'll fund them, but more importantly once this fund generates returns we'll reinvest the vast majority of the returns into the next opportunity fund there's so many people who watch you and the message to everybody is do something about it each one of us thatwatches cnb is in a position of privilege. at softbank, with my partners we're lauchling iaable to lau$10 million fund >> is this part of the vision fund, softbank classic, where is the money coming from? >> this is 100 million fund that's been started by softbank.

we'll speak to other investors who have expressed an interest in joining us. softbank has committed 1$100 million of our own balance sheet to help entrepreneurs and founders of color. >> marcel, when you started brightstar, did you have venture capital money? >> i did, but it took a lot. we had to reach $20 billion in sales for people to take us seriously. there's a big level of distrust that if you're hispanic and for whatever reason people don't think you're capable, and the black community experiences the same this is a small contribution to make sure we start changing tha that >> this question can go to stacy or to paul in terms of building out a team that's going to oversee this, how important is it to have -- not just a diverse team but a

diverse leader of this fund ultimately what is the plan in terms of strategy for hiring around it? >> paul, you want to take that >> i know we're on a bit of a delay. >> i can comment >> go ahead, stacy >> yeah. diversity is hugely important. if we want to change the face of technology, we have to do it from the top that's why we're talking to you today and creating this fund the plan is to make sure we have access not just to softbank and the wide network, but also the networks that we have. as marcello mentioned, we are opening up the opportunity for donations, we have people ready and interested to come alongside us this is a collective effort.

it has to be a collective diverse effort to really make this happen. so the team that will be making decisions on investing and also the team that will be sending us the deal that comes through will be a diverse team in order to get access to the talent out there across our country >> okay. stacy, thank you marcello, thank you. we've seen people stepping up. it's a remarkable thing to see appreciate your time and we wish you lots of luck come back and give us a progress report as things progress. thank you to marcello, stacy and paul who i think we lost i want to look at markets right before we end the program now. we are in the green. we're up 235 points on the dow the s&p 500 up about 18 points nasdaq looking to open up 10 points higher. better adp numbers than we were

expecting. we'll see whether that bears itself out later this week when we get the jobs report let's flip the board around, europe real quick, looking at green arrows across the board in a big way there. finally oil, maybe the undercovered story joe was making that point earlier in the program wt irk crude at 36.68. join us tomorrow "squawk on the street" begins now. good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber live from separate locations stocks are on pace for a third straight day of gains amid a brighter picture protests largely peaceful overnight. dr. fauci with encouraging words about vaccine development. adp says job losses likely peaked in april. as andrew said, oil is hanging in the high 30