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 30s despite

consternation about the opec meeting. jim, another day of business leaders addressing racial inequality whether it's gorsky on squawk, moynihan, ballmer, this letter by cory barry, they're out in force >> yeah. i thought that one of the themes echoed by alex gorsky is no more dodging. look, i'm white, i am part of the problem because i'm not doing enough i think there's been a long history of people who have said i'm white, i'm older, i'm a ceo, i can't do anything other than have a committee and put some money at it. there's far more soul searching this time. these are heart-felt sentiments but also sentiments that say i'm rolling my sleeves up. i'm not going to say my heart is going out with them. the hearts going out with them doesn't work it is something that is a platitude, something that gets nothing done

and when you hear it now, it's code for, hey, okay, i finished that let's talk about the numbers i think that a lot of courageous actions, different tone. david, you have to admit, this is a tone which just says i have to change the way i do business, not i have to throw some money at it. >> yeah. it does feel a bit different than in the past, or that it did four years ago we'll have to wait and see whether there is an impact from some of the things being discussed now. as you point out, the committees being formed, the money being raised it does sort of move along as well with the overall esg movement i made that point yesterday. again, it's something we spent so much time talking about guys over the last couple of years as we seem to be moving to a certain extent away from a soul focus on creating shareholder value. this, jim, could also sort of be part of that effort and perhaps even lead it in certain areas

when we're dealing and talking about things like diversity. >> one thing that i think is the elephant in the room, you don't even hear the protesters say this, it's the federal government that has the money. federal government what's big enough to help change things federal government can help the schools. federal government is led by someone who i think a lot of these leaders perceive as not as involved as they are with these issues that is something that i think is wholly different. hate him or like him, president trump is not unique in any of these discussions. i struggle to figure out whether that is because he is dangerous to talk about or whether people just feel like they've given up and they have to take the problem themselves but he's never involved in the conversation with the ceos i think that's -- i'm not saying its disingenuous, i'm saying it's a shame because the federal government is the only one really big enough to tackle these problems

i know the ceos want to do it. they all set up different organizations. they all have infrastructures within their organizations and they're not as big as the federal government there's a lot of pretend here. the pretend is that, you know what we can solve the problems ourselves. i love the fact that the ceos areinterested in esg i struggle to listen over and over again to people who never say anything about where the president stands >> jim, how many times have we seen ceos line up at the woushie house around a big table with the president to talk about the airline business, the hotel business, talk about manufacturing in the united states what's stopping the white house from bringing in these very leaders who are on our air every day to talk about this >> the answer is it should be done today, right? ken frazier, whom i think has been the most eloquent on our network, ceo of merck. there are pictures of him being

next to president trump and pictures of him no longer being in the room. part of that is but ken frazier is a man of great courage. but yes. look, i'm not the president. i'm not a political guy. but i do hear all these great speeches by these terrific ceos i would call them into a room and say listen, i've heard you this is a different conversation let's get together and let's do something big, not 50 million, but 50 billion but that has to come from the federal government i think that you're absolutely right. the meeting is overdue but again, the reservations of anyone to mention president trump's name is extraordinary. >> yeah. i would be curious to show up at th that meeting you point out ken frazier, he decided to withdraw from the president's council, the advisory council early on in the

administration after charlottesville. you wonder who would be willing to show up at the table or not >> right >> it's the president, but that's still a question. >> can we all admit the federal government is the only one big enough to solve the problem? i love that the companies are all trying to do their best. but this is a big country. we have a federal government this is a federal problem. it is requiring federal dollars, besides just talk. and talk -- i'm not saying talk is cheap these guys are putting time in they're raising money for the issue. but it would be fantastic if the federal government were to join the effort because we're 50 states and no company -- brian moynihan, it's a nationwide company, okay? fabulous note today from best buy, ken frazier, fantastic. steve ball m

steve ball mlmer doing his best, fabulous companies, but you need to coordinate it, harness it and do something there's only one person that can do that, that's the president. but no one seems to say i'm ready to meet with the president to get the job done. if that's regarded as being left wing or right wing to hell with you. i'm saying if you want to be practical, it has to be done with the white house in conjunction with these people. >> yeah. here's a quick listen of what alex gorsky told the guys on squaukz th "squawk" this morning. >> just as in business, when we take on any issue, there should be a plan, there should be objectives, accountabilities, responsibilities, so that's what we tried do at johnson & johnson. it starts by having all of our leaders do a dialogue. 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

authentic selves, have a discussion and have the freedom to create a better understanding. >> there you go. that's not the thoughts and prayers, that's not the generic, that's not the cliche. that's a man who wants to roll up his sleeves, this is a man who is intensely interested in solving many different diseases including, of course, covid, but he's saying my time needs to be reallocated. and that's fantastic but i think that what he's saying is i want to lend a hand. i want to make a difference. he's the ceo of j&j. i need the ceo of the country. the ceo of the country needs to sit down with the ceo of j&j and say i see you're committed i want to do that too. as big as j&j is as important as it is, it's just a company i'm so thrilled that the ceos are more involved than i've seen, but they need to be -- they can't just come on cnbc

this can't be the end of the discussion they'retalking to their employees. they have to talk to the president. i hope the president is listening and says you know what maybe we need a fresh start. we have people who are just such amazing -- alex gorsky, westpoint, fantastic great company. i have to listen to what he has to say he's not talking about left wing or right wing, he's not talking about democrat or republican, but he's not going with hearts and prayers. i find it a pleasure not to hear hearts and prayers >> yeah, jim one thing that they didn't quite focus on as much this time with gorsky is news about a potential vaccine. i'm sure you saw the comments from fauci in this live q&a with jama that 100 million doses by year's end seems reasonable to him. couple hundred million by 2021

he did zeroin on moderna >> i think he should have zeroed in on regeneron. two weeks regeneron starts i know regeneron is monoclonal antibodies, but if the country is open and we have illness, if you're going to be in the hospital hospital, it will be intravenous, but they have the possibility of an outpatient injection cocktail so if you got it, it's not a death sentence i think that we've -- that -- i know dr. fauci, some of that interview was like, listen, the vaccine may not last long enough the whole tone of the science is better start catching up to the rest of the country that's open for two weeks, three weeks and we have not seen the spike now we're getting more cynical saying there's no spike. i think a lot of the spike up north ended when you had social distancing and masks i don't know how you can have all those people at the beach

and not come down with a big spike of cases other than -- other than a small number in texas, it's not happening. it's not happening >> well, at the -- you know, listen, there is -- again, we're always learning more what we know now is a lot more than we knew two months ago, very different perhaps than some of the things we were told, jim. at the -- but one of the key things if you're outdoors, clearly the opportunity to actually get sick is a lot less. that said, we're still at 20,000 cases a day, and we're not really going down. i think that's an important point here 1.8 million overall, 106,000 deaths, just checking the latest numbers. and we're not going down we're plateauing at around 20,000, but texas is going up, california is going up, alabama is going up. north carolina is going up tennessee is going up. now, they're overall not that

large of numbers, though some now are larger than new york's new case load. thankfully new york and this area that we live in has come down dramatically. so it is even below that of what texas is adding on in a daily basis. it's not completely going one way. >> you're right. i don't detect -- i would love to hear that there's a big social distancing movement and a big mask movement down there i hear the opposite, which is that there are many people belittled if they wear masks some of the national stores, they are required to wear masks. but you're right, in italy, there's still some spikes periodically madrid it seems gone you're right you're absolutely right. i feel like there are many people in the south questioning the whole policy >> yep we knew very little going in and still know very little as david points out guys, it will be a big morning david has the head of warner

music as we look forward to that ipo today. big story in the music business. we'll talk about zoom's earnings last night, this employee meeting at facebook, vegas opening tonight. a lot more to come when "squawk on the street" continues turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪

a blowout quarter for zoom last night sales doubled the estimate the market cap is approaching

ge's, amds, target's >> what a conference call. eric is quite a man. he understands the enterprise, comes from cisco he understands cybersecurity admits he didn't necessarily do the job. the conference call is amazing for the first time you hear analysts not just say, hey, great job, you hear them say thank you in this difficult time for keeping us together. someone as hard nosed as heather bellini who i love at goldman sachs, they starts her questioning by saying thank you for keeping our country together basically. it's a remarkably positive conference call. he added general mcmaster to his board. some people felt -- i questioned eric about whether he's too close to china mcmaster, he's a -- he's a former national security adviser of the president

mostly known as a great academic who studied war and what we've done wrong and i just am so impressed with eric i do go back and forth with eric he's been a guest of "mad money" many times his enthusiasm for our country and bringing people together is exactly what we need there is not -- this man is not cynical. this man is someone who just is so glad he did something like this obviously he has to talk about the amount of money he needs to cake it to the next level at all times. he's conscious that the numbers were sharply better than expected but he still doesn't think -- he knows there's more to do patrick walgraves says he's talking to his kids about zoom strategies this is a remarkable company that was just a nothing in december a nothing. it's now become part of the

culture. i have never seen a company have this quick adoption in our society as a verb, doing things that brought people together in a time of terrible stress. so i'm counting eric yuan as one of the good guys >> great conference call the analysts are like thank you. thank you. zoom wedding thank you. >> there's a lot of catch up on the sell side regarding zoom today. we'll talk more about some of the metrics which did tick down a bit from april in the month of may. a lot more to come on this wednesday morning with futures looking higher aiming for a fourth day up on the s&p and a third day up on the dow. back in a minute i love these fries. you know, the chef here trained in france. mmm, it shows! so good. oh hey, did you say you needed help with investing? because i know someone who's really great. and you trust him? totally.

yeah. we went to school together. i'll check him out on investor.gov. so, what'll it be? i'll just have the burger. before you invest, get the full report. check out an investment professional's background for free on investor.gov. before you invest, investor.gov. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today.

time for a mad dash as we count down to the opening bell in about ten minutes from now we'll start with trading it is a hump day crowdstrike is the name you want to focus on. >> in the time of the pandemic, hump day seemed -- it's almost impossible to reach. crowdstrike, another company,

cybersecurity that was made for this moment. they talk about how the covid-19 pandemic created a breeding ground for cybercrime and crowdstrike is in there fighting it this is not an area they're alone on palo alto think they're doing it, too. crowdstrike, i have them on tonight. they're talking about being the structural winner in this period george kurtz has not fully taken advantage of what's going on this work from home movement is supposed to be dead. it gets a second wind from the riots. all we know is when you work from home the bad guys know it you don't have the level of security that you have in the central office you need a crowdstrike, crowdstrike is doing a fantastic job. the numbers go much higher, the stock goes higher. >> there seems little doubt that working from home is something that there's more of once we are

truly through this pandemic. how much more continues to be a key question in terms of commercial real estate and in terms of just so many different things that are based in part on people actually going to the office clearly we'll have more people working remotely >> if you go over that dell call, which we didn't spend nearly enough time on, michael dell is tracing out a world where your home is every bit as good as your office. when i watch carl and david, i say, okay, it's really the difference of me being here and you being there. the answer is somebody brings you coffee and i have to do it myself just kidding everybody brings their own coffee >> we want to be together. let's not make any mistake about that >> we want to be together. our executive producer has brought me cups of coffee. that never happens at your house. >> we're much better off together together we know that

>> you're my friend? are you my friend? >> i know, but even when i come to the office now you're 30 feet away from me >> i miss you! i miss carl! what can i say i miss my wife, i've seen her a couple times the dog i missed nvidia the dog is 13 >> that whole thing -- >> well -- >> we'll talk warner music the company was once public, got taken private in 2011 there is stephen cooper, he'll join us on a first on cnbc interview. company is going public today. $25 a share is where it was priced 77 million shares. a lot to talk about as warner music enters the public markets. more "squawk on the street" after this ♪

we could never do what they do. but what we can do it be a partner that never quits. verizon is the most reliable network in america. built for interoperability and puts first responders first, giving their calls priority, 24/7. we do what we do best so they can too.

welcome back to "squawk on the street." as our viewers know, we typically follow mergers and acquisitions here when there's an announcement of a significant deal in the current period it's been much more of a he foct focus on that are in jeopardy, those that

have fallen apart by mute cal agreeme mutual agreement and one side trying to get out of a contract. tiffany is now on the list of deals that are concerning for investors who are hoping they'll happen you can see where the shares are headed now the question is whether or not lvmh will follow through on that deal one of the largest of last year when it was announced. $135 a share, all cash a huge deal for lvmh to acquire tiffany, part of their strategy to battle the likes of richmond and companies like that. yesterday women's wear daily reported on a board meeting of lvmh where there was uncertainty raised about the potential of the transaction. the article also citing debt covenakoat tiffany. the contract is a tight one. the contract in a lot of these

deals seem to be tight and it would take gymnastics to get out of it never seemingly impossible i can tell you from my perspective, having done work on this as well prior to that women's wear daily story is that advisers on either side don't seem to be aware of anything it may be coming from the lvmh board. tiffany has heard nothing from lvmh with regard to problems with the deal and/or desire for a price cut in the transaction they have heard nothing at this point. does it mean there won't be? does it mean there is not a desire on the part of mr. arnot to see if he can wrangle a lower price for this asset lvmh stopped paying some rent to its landlords. this company was in a position to have done so. as one person said to me, bernard arnot did not become the

richest man in europe by being a kind and gentle soul right now they're working through the antitrust. they're moving at the typical pace things are slower as a result of everybody working from home, including regulators they have an august 24th drop dead date, it can be u unilaterally pushed out by three months if all that is pending is antitrust approvals. the other question is does bernard arnot want to end up in court if he wants to get out of this deal or is this a drill balloon to see if they can get a lower price? >> aren't there strict debt covenants that tiffany would be in violation of? >> they have a three and a halftimes leverage ratio that they're committed to being at or below. yeah, business is bad.

no doubt that's a deconsideratikey consie if they say see you later, they'll end up in court and they'll never be able to buy it. >> i'm with you. restoration hardware has a great note out which says look, one area that's holding up is luxury why walk away from uber luxury >> there's the bell. capital three celebrating its recent listing at the nasdaq, it's warner music group celebrating its ipo today. biggest of the year. david will talk to the ceo in a few minutes. i think even the pricing was changed yesterday due to floyd >> there is stephen cooper who will be joining us shortly 25 bucks it was changed to i hear this all the time, a

seemingly well placed book of investors. we'll see how the stock goes this morning we have not seen many ipos this one and then zoom info after as well. >> this is a remarkable thing. this market does have no conscious. look at this thing the brokerage stocks have become along with the cyclicals just loved. morgan stanley coming back to reacting to its great quarter. obviously the issuance has been extraordinary. those stocks are very cheap. i saw wells fargo getting out of the riskier loan business for autos. that stock has become a loving stock of the people who believe things are getting better. there's a big cohort of people who believe things are getting better and they're buying the

banks and companies that have to do with autos. texas instruments up five. that's auto. that's just auto and industrial internet of things nxpi, industrial, internet of things, auto, that's what's working. >> there's a lot not necessarily -- go ahead, carl. >> apologies, david. reutersers h has a headline flag saying the u.s. is set to bar chinese passenger airlines from flying to the united states in response to china's u.s. airlines resume passenger service. reuters says we will hear more about this later on today that would be incremental to the ongoing u.s./china trade tensions which have been market negative, wouldn't you say >> yeah. this is the area you keep

going -- you want it to get off the radar screen i'm waiting for the next positive news from boeing. that's what i'm hoping for i'm hoping for it because i want boeing to do well. the airlines are part of the cyclical trade the cyclical trade is overwhelming the covid trade there is no stopping it. boeing has been a major leader follow ge and honeywell. these companies have been strong >> amazing the rally has been ferocious we are looking at an s&p down 4% for the year a year in which we had a worldwide panned, unemployment numbers the likes we have not seen since the great depression. social unrest which continues. so many other exciting things. >> we have germany

we found out what angela merkel is worried about she's worried about social unrest that has been an issue in germany. they remember it well. she's opening the pocketbook 750 billion up for grabs there i think a lot of the european countries are doing well it's worth watching. when you come in the morning and see the market up, it's a reflection of how big europe is up starting at 4:00. holy cow, and europe has been up for many days. now other companies that do business in europe dow chemical, that was the biggest dog. jim fitterling in there buying stock. he came on "mad money" and said stop worrying about the dividend the stock is at 41 we're seeing a remarkable resurgence in the companies we had written off. >> incredible.

>> yep >> let's talk more warner music this morning it is a feature, given the company's reentering the public market, the first time since 2011 is when len led a group that acquired it axis industries is still the largest single shareholder, they are the selling shareholder here this is not the company raising primary capital, it's an ipo but a secondary offering shares of 77 million plus shares being offered were for sale by other shareholders let's bring in stephen cooper, the company's ceo. congratulations on the offering. nice to have you this morning. thank you for being with us. >> thanks so much. i appreciate the invitation. >> let's get to the business itself specific to some of the questions you got during the

so-called road show, it was a different kind of a row show because of current conditions, business has done well the value that's been created since the company was bought nine years ago has been extraordinary. nonetheless, now that you're back in public markets, margin improvement. let's start there. some investors are worried it has not occurred as much as you said it would, the thrift from physical to digital. that should improve margins and hasn't how would you respond to that? >> we do see better margins with digital. the spread between digital and physical is about 15 points. however with access support and patience, we have consistently

reinvest reinvest eed much of our free ch flow into buildings, the brain power and muscle mass of the business we can see as a result of any number of those programs our margins improve nicely in '19. and we have some well laid out road maps to continue to enhance margin in the future particularly as the physical side of the business continues to contract. >> right obviously streaming has been the engine of growth for your company for some time. the growth of streaming is quite strong but it's decelerating is that a concern to you >> it's decelerating because the numbers continue to get bigger, but when you look at not only

the mature markets, but the emerging markets, streaming has from our perspective still meaningful growth. the number of people utilizing streaming when you look at that number versus the smart device population, we're still in early stages and because we believe that music really is the only global language on this planet, that streaming and the ease of utilizing streaming will continue to drive adoption both in the developed and in the emerging markets you go into detail on that in the s1 apple and spotify are 27% of

your revenues. they are growing but that's a meaningful amount of your revenues does that give them more power to extract more value from you and other distributors as well >> no. content is a critical component of any service we're on very good relationships with our streaming partners. i think we've reached a point where the economic model has a high degree of stability and there are new models that utilize music as one of their foundational building blocks emerging every day a couple years ago peloton was associated with people dressed in colorful uniforms riding bikes over the alps.

today it's an exercise app nobody heard of tick tock two years ago. the social platforms are embracing and adopting new uses of music so we think distribution will continue to be fragmented. new use cases will continue to hop up and that will drive the utilization of use and the music. >> the artists are key to all of this you have a great stable of them. do the artists have more power and if they continue to have more power with you, does that result in royalties and advances becoming higher for them, perhaps again coming out of your side of things >> well, first of all the way we

see it is the role of the label and music publishers, in our case warner chapel, all of our labels are more important than ever not only streaming, but these new models that are emerging are making the music echosphere more complex than ever. and navigating through that echo sphere ensuring that artists get the appropriate exposure and separating truly, truly great music. is really what we do today, tomorrow and the day after, more than 40,000 tracks will be up loaded on all of these services and being able to navigate our way through that and get our artists heard is what we do >> right

a couple of questions on the current conditions we find ourselves in let's start with the social unrest and the concern you have so many high profile african-american artists, a lot of revenue for your company is generated in that community as well what are you doing and how are you approaching what is going on now? >> it's a shame that in 2020 that racism, social inequality, violence are still even present on the planet. we announced this morning the formation of a $10 mil$100 milln that we will utilize to fight social injustice and bring more social equality to the forefront

and to support in the music echosphere musicians in need yesterday we observed blackout or the show must be paused but yesterday was one day of reflection we'll play the long game by supporting groups that are working to eliminate racism, inequality and violence. it's the right thing to do, and we're committed to doing it, david. >> yeah. as well, of course, we are still in the midst of a global pandemic, which certainly is having an impact on concerts and things that go along with them, licensing revenue, for example, as well, for movies given production is not happening. how significant is that going to be in terms of a hit to your overall revenues

>> about 70% of our revenue is digital. we've been quite resilient during this crisis we were also very quick to pivot literally in a 24-hour period around the globe. we moved from roughly 100% work from office to 100% work from home we have been able to continue to bring our artists and their music to the marketplace, even though we're doing it from home and virtually. we continue to sign artists and songwriters. apart from our physical by thenes business, merchandise, touring has slowed down, but we expect those to recover over the coming months as the world opens up a

b bit. we've also been exploring and experimenting with, you know, virtual reality livestreaming new use cases for music. so that we can continue to impactfully connect our artists with their fans. >> interesting finally, back to the offering itself, access industries is a huge win for that company from when it purchased it and how it's changed warner music and the value it's created controlling 99% of the vote. do you expect len to continue to sell shares over time? >> well, i think that just to get it said, access has been a great owner, very supportive, they have encouraged us to

reinvest in the business and play the long game from everything i know they'll continue to be deeply involved and substantial owners for the foreseeable future, david. >> all right we'll be following, of course, given that you are now a public company once again congrats on that thank you for joining us >> thank you for your time have a wonderful day >> thank you stephen cooper, ceo of warner music group. carl >> all right, david. thanks for that. watching the markets this wednesday morning. s&p 3,106. watch europe the dax is up 7% in the last five days above its 200-day for the first time since late february ♪ limu emu & doug

[ siren ] give me your hand! i can save you... lots of money with liberty mutual! we customize your car insurance so you only pay for what you need! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

woi felt completely helpless.hed online. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

welcome back to "squawk on the street." rick santelli here live at cme hq what a day we have so far with respect to the market. you heard from carl the dax is flying, the euro is flying, and job losses or at least what we suspected on adp this morning was just a fraction of expectations listen, down 2.7 million is not a good number, but it's much

better than down 9 million that was expected you see at 8:15 a.m. eastern how these bond yields moved higher if you move towards mid-march, we're at the best levels on the closing basis for 30s since mid march. if you look at tens and 30s together, you can clearly see how the 30s have outdistanced themselves if you look at the note over bond spread known as the knob, it's the widest, furthest up and furthest apart it's been in four years. dollar index, the image of the strength in the euro is at the weakest level in 12 weeks. year to date, ever closer to 9640 where it closed one of the reasons europe is doing so well is because shared debt opens more possibilities and they're on track to try to deal with some of the stimulus issues of their impacted economies. carl, back to you.

>> all right rick, thanks for that. rick santelli. jim, i want to get you on the ndx. .3 away from an all-time high. bespoke did work yesterday looking at up 30% in 50 days you go out a month, three months, six months it's usually up even from that >> yeah. when i look at -- it's actually a great -- there's not -- i was going over the components. it's pretty much everybody you think that they're a hand full, but do it, led by faang or something, but no. it's just very, very broad again, so many companies seem to be made for the moment it is hard to believe whether it be the moment for work at home, whether it be the moment for 5g or the moment for return of the autos or the moment for the return of housing and it's not a faang rally. although, facebook played a role amazon's got so many things going. it's a zoom rally, for heaven's sake

zoom, they wanted it lower they felt they could press it down good luck. >> we never even got to purchase applications, up 18. year on year, if i told you surpass applications to buy a home would be up 18 year on year in this pandemic, that would have gone nowhere. >> but people are coming up telling me i'd like to buy my house. you want to look at it i haven't redone the floor i'm just happy no i mean, there's just this movement no one has seen it in a long time particularly to the suburbs that has not had it in real the counts are urban is what david calls it he's right >> yeah. as the dow jones industrial average just a shade under 26 k. mo baker he. we're back in a minute

right now is a time for action. that's why usaa is giving payment relief options to eligible members so they can pay for things like groceries before they worry about their insurance or credit card bills. discover all the ways we're helping members today.

banks, industrials, materials all leading today. take a look at jpmorgan up 3%. best performing dow stock getting awfully close once again to that highest level since mah h en irc6twht closed at 108. we're back in just a moment. woman: my reputation was trashed online.

i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

it's time for jim and stop trading. >> another time we'd only be

talking about the note where they said think thought the forecast for service revenue might be 35% might be 18 %. it's going to be 35% this stock is a few points off the all-time high for four points i think it blasts through it retaining the note the services component is insane people are at home what are they doing? ordering things from apple my big issue with apple is contactless credit because boy, people don't want to get that co-vid entrusted key port you get the number in. apple contactless and apple services, to the moon, alice katie, no one is talking about it i just did >> i know. i saw it this morning, jim even as we're talking, the president's on a radio show saying he's not excited about anything with respect to china trade right now. where did the trade risk go on apple in china >> well, they just cut prices.

the president is off the reservation. listen, you know, what's good for apple is good for america. it's like gm in the old days you've got to get with the program. i said it. tweet me i don't care >> jim, how about tonight? >> okay, i got crowd stryke. and then ken romanzi, b and g food, comfort food green giant. i have that because my wife believes we're going to have thermo nuclear co-vid. the president ought to take down nike does the president say he's boosting -- going on hold to buy young china? is he focussed >> a lot of headlines this morning. >> i'm not letting boeing have a single order from china, because

china. there, i do. i did it i articulated the whole plan i did it peter navarro, come on it's okay. we have a 20% unemployment could you let us have some employment and then we go after them there, i spoke again smooth, holly, hoover, trump all them >> that's been your view, jim. >> yeah. >> consistent. >> that's okay never take your economic policy from hoover. we knew that hoover no good. doesn't work fdr. smarter. sorry. sorry i didn't praise hoover >> it's all good we'll see you later. >> all right there. i said it. criticize me >> we'll see you, jim. good wednesday morning, everybody. welcome to "squawk on the street." i'm carl quintanilla quintanilla with david faber and sara eisen

coming from various locations. ism, back to rick santelli for that >> better than expected. we were looking for 4.44 we ended up with 45.4. much better. that follows 41.8. very nice number not so nice is factory orders for the month of april down 13% of course, 13% is an all-time low for this 1956 series of dabt data points. we want to pay close attention to see if it's the bottom. if you take transportation away, it's down 8.5% durable good orders, april finals replacing mid month minus 17 .7. slightly worse than mid month read extransportation, similar to factory orders, down 7 .7% and the very, very important cap

c capital spending proxy largely as expected. following the 5.8 read on the mid read so we are looking at numbers that certainly aren't good seed corn for the future, but we have to pay close attention as to how it may change. if you switch gears from orders to shipments, down 5.7 % so basically the data on this is as expected. manufacturing better than expected market pmi, a little bit better than its mid month read as well. adp not nearly the big jobless that explains why the long maturities are starting to zoom in terms of interest rates and many equities including global equities seem to be following the u.s. and on the foreign exchange side, keep a close eye on the euro. the strength coming from christine lagarde and her pursuit of the shared debt on

the coronavirus. and how it morphs in the future. back to you. >> rick, we'll watch all those things as we watch the dow try to reclaim 26,000. to begin the hour, we'll continue with the civil unrest across the united states joining us this morning is the mayor of cleveland thank you for the time this morning, it's good to see you. >> nice seeing you, too. >> you extended the curfew, i think to june 5th like a lot of cities have. the overall impression this morning is that last night was peaceful relative to prior nights is that true, and do you think curfews made a difference? >> well, it's true for cleveland, and curfews did make a difference here. we had one night of disorder and that was saturday night. and we madly locked down

as a result of that action, we were able to -- >> mr. mayor, what is the city's view on activating national guard, the involvement of federal authorities to maintain order? >> are we back i know >> mr. mayor, can you hear me? >> yes, i can hear you i was asking about the city's view about the involvement of national guard and federal authorities to maintain order. >> the national guard has been very helpful to us sort of as a essential backup for our police division. and it allowed us to then go out and deploy resources in other

parts of the city. the national guard was able to sit on some areas that allowed us to then move out. they also assisted in the neighborhoods, so national guards were essential. in terms of federal troops, that's a whole different story, and anybody who understands the culture and mission of a citizen army or national guard in a professional standing army would understand how that doesn't work the same way >> t sara. what's your assessment of the damage to local businesses and what are you doing for them? >> well, they have been damaged, not only in terms of physical damage, but there's some damage in terms of a loss of business during the time of the curfew. we don't know exactly what that

is we're still in the midst of dealing with hoping we don't have another night of disorder but we are working with the business community, and we'll have that assessment going forward, and then we'll have a better sense as to whether or not -- what type of support we can give them. >> mr. mayor, it's david faber prior to this social unrest, the concern of a lot of cities was the budget given fallen tax revenues as a result of the lockdown i'm curious j is that still an issue for you. i know ohio was not particularly hard hit, but you were locked down what are you seeing when it comes to the budget in cleveland? >> well, fortunately for this year, we budgeted in a recession for cleveland. we anticipated one coming either the fourth quarter this year or

first quarter of next year unfortunately, it came in the first quarter of this year with the covid-19 and it was a deeper than we would have expected, and it appears the duration is going to be longer this. but because we built in that cushion, we have been able to ride the story the question with us is how long it will be that we'll be able to do that. adding in the civil disrest and the added cost, particularly in public safety to address that with the declining revenue, as you can see, will really expedite whatever issues that we will be having so we're looking at it and we're reviewing it on a weekly basis we're looking at our revenue

stream and costs and we're anticipating if things don't level out soon, then we'll have to make cuts, and as you know, with local government, 85% of cost is in personnel and benefits so that will result in layoffs which will impact services >> well, you're certainly not alone in that, mr. mayor i know the national league of cities did a study that said 90% of cities see a budget short fall we appreciate you helps us start off the hour obviously cities are hugely important to our coverage right now. thank you. >> i thank you thank you very much. mayor frank jax of cleveland. we want to get you news regarding flights to china and vice versa phil has official word from d.o.t. >> these are details this is the order from the d.o.t., essentially calling for a complete ban on commercial airline flights from chinese

airlines starting on june 16th if this goes through and there's no reason to believe that it won't, this will effectively cut off flights between tw t two countries. remember the u.s. carriers, they suspended their operations, starting january 31st. they haven't had any flights back and forth you've still had about 30 to 35 flights per week from china coming into the united states. coming into either new york, chicago or los angeles the u.s. and china were negotiates couldn't work out a deal now the d.o.t. said you can't come to an agreement to letting us come back to china, maybe you shouldn't be coming here this is an escalation of tension between the u.s. and china now we're seeing it with chinese carriers essentially being banned from flying into the u.s. starting june 16th th. >> part of the broader story, for sure phil, thank you. after the break, campbell's

soup ceo on the impact of covid-19 and civil unrest. that stock is a mover after upso sales rose 35% stay with us

dow is up 260 points c campbell's organic sales jumped

17% due to increased demand for at-home food comsumption during the pandemic joining us is the ceo. wow, what a quarter. 35% sales growth in soup talk about sort of the trends that you saw from consumers from the early pantry loading, the stockups to what you're seeing right now. >> yes thank you for having me back on. it's an an interesting i think the early phase let's call that the psychological buying not too different than when a blizzard is projected to come in. in this case, it was as if it was happening in every city in the country. that drove pantry loading focussed on products like soup with long shelf life that are

consistent with what you do when you're trying to create some comfort that if you're stuck at home for a while and that drove demands as high as on ready to eat soup of 140%. really, truly, unprecedented but what we've seen and probably what in a very tough moment, a let's call it a positive to draw from it is we've also seen now in the second phase, very distinct behavior changes. this is more about demand by what people are doing. so increases in what we're describing as quick scratch cooking or the need for simple lunches as people are spending more time, more meals at home, as they look for comfort, simple recipes, and are cooking on their own. sadly, as we all know, one of the byproducts has been the economic pressure in this moment value has also become and is playing an important role in our products and portfolio are

well-positioned in that moment as well. and i think as we think about moving forward, you know, what we're seeing is that the growth in household penetration is being followed by very solid repeat, and so we do expect the stickiness, if you will, of these behaviors to continue moving forward you know, as we now move into the next phases and what a new normal might look like, i think we're watching closely, but in the meantime, we're investing heavily into this moment to do the best we can in retaining the households, building relevance, building equity, building usage, all the things we know that will be important in retaining the new consumers going forward. >> i guess the repeats is why you felt confident to raise guidance but what about the sustainability of this kind of growth in soup in particular given the weather is warming up, and so is the economy with people increasingly going out the restaurants? >> yeah. you know, i think that's a question that we've got to watch

very closely, but when i think about what we're seeing and remember, sayra, our guidance i one more quarter we have about two months we're projecting into. i think the combination of although we may see some slowing of demand within the summer months as you might expect with overall cooking or some of the categories we're in, i think it will be on an elevated level than what we could have seen historically and also, as you've watched, this demand, we're talking about categories that in some cases had been flat to declining for ten years. this kind of demand, obviously, has put a lot of pressure on capacity so even if demand slows, i would expect us taking the balance of the fourth quarter even into the first quarter to fully recover on inventory levels. said differently, even if consumption is a bit down, i would expect shipments to outrun that as we replenish inventory

levels in our retailers. >> mark, we're obviously having the conversation with a number of executives this week about the civil unrest taking place in this country campbell's soup just across the river from philadelphia. industrial down with roots, i think, back to the 60s and 70s of civil unrest. what's the experience been like for you? >> as i told my team this week, the covid-19 virus in many ways as reflected some of the best humanity has to offer, but i think in the last couple weeks we've been reminded of the horrific problem that is truly systemic of racism in our country. i'm sure i share with many the sickness of having to watch time and time again people targeted

and persecuted because of the color of their skin. i think for me personally, through this experience, what i recognize is althoughmy sympathy and understanding is important, my black colleagues at campbell need more than that. they need action they need us to educate and be part of the solution there's a zero tolerance policy in our company, but that needs to be accompanied by first in this moment, i believe compassion, giving support and room for our black colleagues and all of our colleagues that are impacted by this current situation. then move strongly into education and then implementation into involvement to be able to make a difference. i do not want to wait for another video to be a call for action although we may not be able to

change the entire world, i think we can be a better example of what it should look like >> it's hard to find numbers on diversity for companies these days i know that you guys in your esg reports and your annual reports have mentioned gender. you've gotten credit for that from bloomberg andothers, but where are you on diversity this general, corporate has been behind in the numbers from cooperate management to board members. are you looking at that? >> absolutely. i think we're in a unique position given our geographic position we have a wonderful opportunity to come from rich, diverse areas that give us the opportunity to i think better attract talent and ensure we're creating and this boils down to are we creating an inclusive environment where all our colleagues feel they can come and be their true self in the

organization and i think all of us need to feel a sense of being behind there's no question in my mind that i can and will do better and i thinkthat's the attitude that we've all got to bring to this solution, but i come back to the starting point of really this understanding of education and making sure that we better appreciate the problems and challenges so we have a better chance of solving them together. so although i feel good about progress we've made in many areas and continue to make, i want to feel that sense of being a bit behind so that we make sure that we do not do anything that slows our urgency or commitment to making a difference here. >> i remember, i think it was under your predecessor during the ceo meetings i remember when we introduced

campbell's soup and said good soup, president trump that is. what's your engagement level with the white house, and what are you looking for from president trump in terms of leadership on this issue >> i think that although i'm sure what many americans want to see us working together and trying to make progress across the board. i think more orientation or philosophical belief is i have to make an impact in the environment that i can control so my focus is really in working with my team and the communities that we're in directly i would certainly hope that we can find a way to bring the power and the scale of all of us working together in the same direction and in addressing the things that i described. right? education. working together to build a better position. i've got to say one of the bright spots in what was a

relatively tough weekend to walk through was waking up on sunday morning and seeing in our own backyard here in camden an image of protesters and law enforcement marching together. and knowing the progress and the history within camden, not to say that we don't still have many things we need to work on together in many ways, i think it was a great example of the possibility. and so if we can take some lessons from where we are making progress, i think it gives a blueprint or play book of things we can really do to try to have an impact. if we can accomplish that in camden, i think there's great hope for us across the country >> well, that is encouraging thanks for weighing in on it mark, finally, i want to ask you about the impact of covid-19 the fact that we are starting to see businesses reopen. you had a food services company

hit. what do you see of early indications of people going out? >> i would describe it as slow progress in the away from home arena. as a reminder, i do think something that is a little bit more unique is that away from home only represents about 5% of our business and of a good portion of that happens to be in support of health care and health facilities where we've seen a steady demand what i expect to happen is certainly i think it will continue to recover. i think it's an important part of the economic recovery of the country. i think we'll still see an increase in in-home consumption and cooking. it's like anything else. once you've learned the behavior and the value equation that comes from what we call quick scratch cooking or simple lunches at home, i think that's

going to stick and i think the balance will certainly move toward a return to away from home, but i think there will be some very strong resilience as you think about the behavior and the increase of behavior in-home >> yeah. i just want to ask you what you guys are thinking about in terms of the shape of recovery in this country from a very, very, very deep economic slide here in the second quarter and whether the protests will get in the away and affect consumer behavior. >> yeah. clearly that is a tough question to answer. what i think we're trying to do is create an appropriate spectrum of scenarios and put the right contingencies in place based on what we see and think is needed. i think there is no question that in the immediate future we're going to experience economic pressure, no matter how

you kind of cut the scenario i think value will remain an important part of what we're doing. on that continuum, i think what we have to do is work and dedicate recourses, think about alternative supply the other thing you didn't mention in the scenario but i think is in my mind as well is what if we see a step backwards as it relates to the virus as we get into winter, and are we going to be in a position to action on the learnings we've had this time through to be as ready as possible? and although you can't plan for every possible outcome, i do think time is well spent in planning against the scenarios to be as ready as possible and although i wish i could give us a better idea of what i think that exactly is going to be, i think our adaptability and remaining nimble is going to be what's important >> is that something you're

doing actively is preparing with a second wave with your manufacturing and production >> i think you have to see through that scenario. the significance of what it represents with movement in demand is something that we don't want to be flat footed on that we don't want to assume. i certainly hope that is not what we see and that we're able to kind of sustain normality, but at the same time, i know how important it was for us to be able to keep our supply chain going. and i have been so proud and impressed with our team and their ability to react and achieve what they've done to keep our retailers and our communities with food availability i do not want to let them down even if the probabilities are getting lower that they may occur, i think we still have to be ready without making long-term big financial investments that might not be appropriate, there's a

lot of things we can do in the near term that allows us to create flexibility without necessarily deploying significant capital before we know or validate with the demand looks like >> mark clouse, thank you for joining me >> thank you let's hit our etf spotlight. today, consumer staples. ticker xlp up 8% over the past two months underperforming the s&p 500 during that period still in negative territory so far this year. as for the top three holdings, coca-cola outpacing pepsico and procter & gamble this morning. a quick break. stay with us on "squawk on the street." a grandfather of 14.

a newlywed... a guy who just got into college... that's why behind these masks, johnson & johnson scientists are working to accelerate development of a covid-19 vaccine, drawing on decades of experience responding to public health emergencies like ebola and hiv. for the life behind every mask, the clock never stops and neither do we.

we thought you could help ray bring hiwhat?s to school. kelly, do you know him? -he's a new friend. you ok? you know you can tell me. i'm ok. oh, i trained her in the car. she's not gonna break. [ laughs ] we talked a lot about the reopening recovery trade in place today. but you don't have to look any further than boeing. up almost 6% to 161. almost 162 which would be the highest close since march 27th more "squawk on the street" in a moment this moment. this moment right now... this is our commencement. no, we'll not get a diploma or a degree of any kind. but we are entering a new chapter in our lives.

our confidence is shaken; our hearts cracked. the kind of a crack that comes from the loss of a job; from life plans falling apart. we didn't ask for it... but we are rising to meet it. and how far we've come isn't even close to how far we can go. we just have to remember how patient we were... how strong we can be. (how strong you can be.) and remember this; there's a crack in everything for a reason. how else can the light get in? ♪ tomorrow starts today.

here's your update at this hour moments ago defense secretary mike esper says he does not support using the roughly 200-year-old insurrection act to send active duty troops to state. he said they'd be used only as a last resort. president trump says he wasn't the person who ordered that peaceful protesters be cleared from in front of the white house before he walked to a church and he claims he wasn't to a white house bunker friday evening to inspect it. protests against the death of george floyd continued overnight largely without the violence and looting that marred earlier protests in portland, thousands marched peacefully for hours protest at the city's justice

center also peaceful until police say projectiles were thrown at officers and tear gas was fired to disperse the crowds go to cnbc.com for updates on protests around the country. you're up to date. carl, back to you. all right. sue, we'll see you then. in the meantime, let's get a check on today's trade stocks are looking for their third day up on the dow. 3110 as the nasdaq 100 is inches away from an all-time high

describing why there's a glaring disconnect between the stock market and what's happening across many major cities in the u.s. that's on tradingnation.cnbc.com we live in uncertain times. however, there is one thing you can be certain of. the men and women of the united states postal service.

we're here to deliver cards and packages from loved ones and also deliver the peace of mind of knowing that essentials like prescriptions are on their way. every day, all across america, we deliver for you. and we always will. nationwide protests were largely peaceful here at cnbc we're exploring the connection between race, the american economy, and how corporate leaders can be part of the solution and a path forward. joining us now, desiree rogers, a former special assistance to president obama. nice to have you with us this morning. >> nice to be here good morning >> i'd love to initially get

your take an what we've seen from corporate america the statements, some of the creation of funds and efforts to combat racism, to create more diversity. we saw the same thing four years ago. it doesn't appear that that much really changed do you think this is going to be a moment of change >> here's what i would say this inflection moment for america. we see many different types of people that are marching young people, older people, whites, blacks, different minorities, and we've got to do something. we can't continue to cycle and so it is great that organizations and they're wonderful organizations out there that we can help at the same time, we've got to change we need great education. we need an investment. we need investment in black-owned businesses we need support of minorities

inside of corporate america. how many ceos do we have of the major corporations that are minorities not many how many are in the boardrooms what kind of investment strategies are they incorporating that incorporate diversity? so we applaud all the organizations that money is being given to own the good work they're doing in social justice. all our -- we need more than that we need everyone to take a stand regardless of what industry you're in whether it's corporate, whether you're in education or fighting for social justice or health care for that matter >> yeah. we've had the merck ceo who has been very articulate on a lot of these issues, talking about the opportunity gap. do you see an opportunity gap as well is there anything you're doing

as a black entrepreneur to tackle it? >> answer salutely we have a problem. there is racism in america what can you do to make the changes? what stand are you taking? one of the things we're doing, we're a small business what we're doing is making certain that we hire -- we're hiring other minority businesses to support us whether that be in product development, public relations, i.t., those companies are out there. i am really tired of people saying they cannot find qualified minority businesses to support. and the only times that we come out and support black businesses is when we feel like we're in turmoil or jeopardy. this would be 365 days a year. not just a few days out of the year where we're deciding that this is an important issue here

in america >> it's sara what specific policies or actions do you look for from the government right now >> what's happening with the consent decrees. how do we allow this kind of drama to continue to go on and on how many people have to be killed they're killed and then things go away and we say well, that's a black lives matter issue this is an american issue. how do we begin to heal? how do we begin to really hear what's happening and it's not personal. i mean, you don't have to internalize it and say i'm not a racist it really isn't about each of us individually it's about the stats speak for themselves i don't think there's any getting around the statistics around what's happening with with black america and in particular black men i think everyone has seen the visual we know that this -- no one can

fake this did not happen so the question is certainly you want justice for the floyd family, but we also want progress we want sustained progress not fits and starts. we want sustained progress we want better education better health care investment in black businesses investment in black neighborhoods. sustained. not just as i continue to say fits and starts. i feel like i've been here before i feel like we're just cycling and so how do we make that turning point? and how do we make this real and sustainable? sustainable, i think is the key, and real change. >> you know, it feels particularly acute right now because of covid-19 and the impact that's had particularly on the black community how have you seen that exacerbate this issue? >> well, this is -- you have to stay home.

you stay in. well, guess what i can't stay in, because this is my livelihood. i am on the front lines and i'm talking about myself and i'm talking about many of my brothers and sisters that happen to be minority they're working the front lines. have you been to a hospital lately lots of nurses and caretakers happen to be minorities and african americans. have you been on a bus lately? guess what minorities are driving the buses. they are ringing your groceries at the grocery store they can't stay in and guess what when they do get home, they're multigenerational families in the homes. so they're putting their family members at risk, and so they don't have that luxury of being able to stay home, and in addition to that, you look at some of the neighborhoods in chicago, south side, west side, guess what they're food deserts this is real and so people don't have the ability to eat in a certain way

or have food be available to them that is not pricey. we have health care issues you can't blame people you say oh, well, this is a population that is not taking care of themselves money is power and we have got to find a way to get more opportunity and more money into communities so that we can all take care of ourselves and be in a position where we can all sit home during this pandemic, but that's not the case with minorities we have to work. >> we're talking about corporate america's response to this and their commitment to helping to fix the problem. i'm looking at a tweeting right now from mcdonald's, official twitter account. they name trayvon martin, michael brown, george floyd. we talk about enough being enough and this time being different, but don't you think this time really does feel

different? >> one of the things about mcdonald's is there are many minority franchisee's. they have been instrumental in helping work through the issues in the minority communities of america because they know about this because they are minorities so that is a very good thing the other thing i would say is that it does feel different. you know hy? it's not just black people and minorities that are out marching if you look at the rainbow of people holding hands and marching, it is a swath of -- a full swath of america. and then the other thing that we haven't seen before is literally police officers crossing the line not every police officer in the world is a bad person. many of them are doing their jobs many of them happen to be minorities as well and so if we can just get people -- i call it the rope

adope. focusing on one thing. focusing on the looters or people that have been violent. that's a distraction let's get to the real issues and focus on what the real issues are. the issue is not looting the real issue is why is this happening? why are black man being killed at the enormous rate they're being killed? what is happening? it's racism it's injustice it's lack of opportunity and so those are the things that have to be addressed let's not be fooled by these occurrences. let's not be tricked into fighting that versus focusing on the real issues and getting answers to the real issues >> we appreciate your time and thoughts thank you. >> thank you when we come back this morning, interactive brokers chairman and billionaire investor thomas petterffy is

joining us

dow is up 330 points coming up on the "closing bell." ursula burns, she was one on the only black female ceos of a fortune 500 company. we'll be back. stay with us - [narrator] at southern new hampshire university,

we're committed to making college more affordable. that's why we're keeping our tuition the same through the year 2021. - [student] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu.

♪ ♪ ♪

welcome back to "squawk on the street." let's get to bob now who has a special guest for us bob? >> thank you, david. and our guest today, thomas peterffy, the ceo and founder of interactive brokers, one of the big online brokerage firms out there. thomas, good to see you again. >> it's a pleasure to be with you again. thank you. >> you are a great market watcher i've been talking to you for many years i'm wondering if you can address what many feel is a disconnect between the stock market rally and the u.s. economy, the s&p is only about 8% from its old historic highs and we have historic high levels of unemployment and there is civil unrest in the streets. can you address that disconnect for us >> i would be happy to to the extent i understand it closing down the economy in

reaction to the coronavirus prompted the fed and the government to put more money into the economy by giving it to people and businesses who had to stop working it looks to me that like by the end of the year, they will have an additional $10 trillion in the economy. unfortunately, there is no corresponding increase in the production of goods and services if anything, that's moved in the opposite direction so what happens to all that money? if if it circulates, it will create inflation if it accumulates in patient hands it will add to inequality. i think, probably some of both will happen. the situation will inevitably result in rising interest rates, which will increase the costs for financing the debt by the government and, therefore, they

will have to bring even more money. the market is going up because stocks are viewed as a safe haven for inflation. >> so i think that's probably correct, but do you understand how people see that as a somewhat unsatisfying answer the idea the market is up because we got a lot of stimulus from the federal reserve and from the congress and interest rates are low and stocks are a safe haven, may be intellectually correct but not satisfying for a lot of people i've been talking to on cnbc and on twitter people are unemployed and they're baffled why the stock market can be close to highs you understand the emotional issues people have with this >> i completely understand it. i have saw everything i had. i see this market going up day after day after day.

it's completely counterintuitive i think the explanation is the correct explanation. >> one of the things that we've noticed is an increase in retail trading. you've seen it too in your own firms, measure of trading is up 84% for your firm. new accounts up 31%. some of your competitors have seen similar numbers i'm wondering, is the retail pie expanding? what's accounting for the increase obviously people are staying home more, maybe that's the more likely thing, but are more people getting in the stock markets? is the pie expanding at all? >> the pie has been expanding for several years now, but it's suddenly taken a spurt and that is, of course, because

of the stay-at-home nature of the situation. so, yes, the -- just like anything else, this section of the economy is becoming more and more digital and, therefore, there is more and more online trading and less and less call your broker on the phone trading. so this will continue. >> thomas, you talk about inequality when does the market have to grapple with the prospect of true income redistribution or even a biden white house and the implications that that would have for corporate taxes >> well, you know, if it's conceivable that corporate taxes will be increased. i think that's quite -- it's quite possible but, you know, any tax increase

is not going to do anything sizable given these huge deficits so we are at a point now where people seem to think that deficits do not matter and it's true that they do not matter until they do and that will come all of a sudden and i fear that time. there doesn't seem to be any limit to the amount of money that a government can comfortably issue and put into circulation. >> thomas, it's sara, you've been a financial backer of president trump's, a supporter of his, given the moment we're in right now, a crisis in america, an economic crisis, social crisis, how do you think the president is handling it >> well, the president is trying

to handle it as well as he can i'd like to clarify that my interest in backing the republican party is because of my fear of socialism i have grown up in a socialist country, and i know what socialism means and what a terrible life results from that. so it's my -- my choice is an ideological choice and i think all elections should be about ideology and not personalities >> it's david faber, feels like a lifetime ago but march 16th, only two and a half months ago, you were quoted recently in a "wall street journal" story that went into detail in terms of the tumult on that day how bad were things on march

16th how concerned were you do you think we revisit a day like that? >> i think the higher and higher the market goes, the likelihood that one day a terrible collapse will come. the problem is, again, it's not so much the market going up and down, the problem is there are times that liquidity suddenly disappears as we witnessed the other day when the oil price went to minus $37. so when liquidity disappears, that's frightening because then the people who would like to liquidate cannot people who trade on borrowed money blow up, the brokers have to make good on their obligations. so that is my fear is. my fear is the market goes up and up and up without basically

any fundamental basis, it is -- i'm afraid that one day it will implode. >> thomas peterffy of interactive, it's always good seeing you and bob, thanks for bringing it to us. we'll see you both a little while later. good wednesday morning, welcome to "squawk alley" i'm carl quintanilla with jon fortt and morgan brennan watching the markets closely s&p up four straight, dow up three straight highest since march as the market looks past u.s./china tensions as the u.s. bans flights from china beginning mid june we'll start with battleground state voters and how black and white communities are living in two very different worlds. steve liesmas