violence, but i'm hoping last night, we certainly saw that things had calmed down a little bit, more peaceful protests and certainly that will continue >> greg, thanks so much for your time today >> absolutely. >> greg becker, presideceo of sn valley banks earlier, i said the tyson food ceo was indicted, that is not correct. he is not mentioned in the indictment that does it for "the exchange." "power lunch" starts now >> indeed it does, kelly thank you so much. and we will see you in a moment. i'm tyler mathisen welcome back to the kitchen and welcome to "power lunch. stocks in rally mode right now with the dow near the highs of the session, folks, as investors shake off any economic uncertainty fears and folk on the road to recovery in america. and check out that v-shaped recovery thanks to big technology, ladies and gentlemen. the nasdaq now just inches, inches from a record high and the largest software and internet etfs all notching

all-time highs today and if you just looked at the market, you would have no idea, frankly, about the civil unrest across america, as thousands continue to take to the streets to protest racial injustice and inequality demonstrations last night a little more peaceful than on prior nights we're going to dive into what could be a tipping point here in the u.s. "power lunch" starts right now >> tyler, thanks stocks are at their highest level in three months as the rebound continues at a furious rate for more on the road back to record highs, let's get to dom chu. hi, dom. >> hi, kelly, let's talk about the massive amount of green you're seeing on the screen right now. as you and tyler mentioned, the v-shaped recovery continues to move the dow industrials, 400-point gains, about a percent and a half to the upside the s&p 500, 3116, the level there. 1% gains there

the nasdaq actually lagging for a bit now so far but let's take a little closer look at the nasdaq specifically the nasdaq 100. because as tyler mentioned, we're inches away from record highs. in fact, if you look here, we are just about 2% away from the record high levels that we saw earlier this winter in february for that particular etf that tracks the nasdaq 100. as for the sectors driving the action today, check out what's happening now with names like financials and industrials, leading the way high meanwhile, communication services and health care, the relative laggards in trading so far today. health care, the only one in the red. and one last thing to note boeing shares getting a bit of a pop here on news that activist hedge fund third point run by dan loeb is taking a stake in the plain maker. that accounts for one quarter of the dow's gains today. but remember, we are still around 57% away from the highs that we saw last year in boeing shares keep an eye on that one. kyle tyler, kelly, back over to you >> the telestrator is back

>> it is back. i'm touching it, as well >> wipe it down. dom, thank you so much the dow is on pace to close at its highest level since early march. we're back over 26,000 today what's driving the gains and what is wall street seeing that the rest of america might not be michael aroney is with state street global advisers and scott clemens, welcome to both of you. scott, i'll start with you and these markets. and you know, we had a great discussion last hour about how there could be lags in some parts of values and small caps, and so forth do you believe that or do you think this is all too much, too fast >> it does seem too much, too fast but at the same time, kelly, you make a good point. this market, as defined by the s&p, at least, has been so narrowly driven that in reality, what we're seeing is a tech rally, reflected in the major index of the s&p 500 but leaving behind smaller cap stocks and indeed, leaving behind much of the rest of the index, as well if you look at the s&p equal-weighted index, same names

as the regular index, just equal weighted instead of cap weighted, still down 11% year-to-date, while all of these tech companies are hitting new highs. there are opportunities in the market, they're just not in that high end of the tech companies that have led this market higher >> so when you describe that michael, i feel more optimistic. because i think, well, maybe the big cap tech companies started this and they'll take a breath and everybody else will catch up >> well, i do think that the good news here is that the highlights that scott puts forward are, in fact, true, but we are starting to see some shift in that trend, so of late, the equal lly weighted has stare to outperform the cap-weighted s&p. and it does appear as though we're seeing some catch-up from the small and midcap stocks. so this indicates to me that the average stock is now starting to participate. and i think one of the more encouraging things that we're seeing in the last few days is things like energy, materials, and industrials and financials start to catch up with this

rally, as well, which signals to me that investors are getting more enthusiastic about the potential for a recovery the other thing that i think is encouraging here is that the positioning on the equity front continues to be fairly benign. if i look at the aaii survey, about almost two-thirds of folks are either neutral or bearish. and lastly, you look at kind of $4.7 trillion in money market funds, it indicates there's a fair amount of buying on the sidelines, as well so if some of this starts to loosen up and come online, you could see markets push higher. >> scott, let me come back to you. you say, and this is also becoming more of a theme lately, that the most interesting part of the market to you is the small-cap stocks you know, as much as they're still lagging to me, they're very quickly becoming a consensus pick here. >> they are. and that worries me a little bit, as well michael's right to observe that over the past just week or two, rather recently, market leadership has begun to broaden out.

small-cap stocks are still lagging that and when you think about, this is a characterization, but one that i think generally holds, smaller capitalization stocks, more domestically oriented, less susceptible to the risks of an escalating trade war with china, again, more available to take advantage of domestic benefits and another stimulus package that comes out of washington, we're just seeing a lot more opportunity in smaller companies than we are larger companies that's been true for some time that's not a new statement, by the way. but the often the case, market trends can go on for quite some time we may see that trend turning even right now >> fair enough michael, finally, you are looking to european and chinese equities and tips, which i think is much less consensus >> well, i think what's interesting is certainly with market volatility, that volatility has created some relative value opportunities and let's face it, kelly, there really hasn't been many of those as the market runs up and ahead of itself, valuations are a stretch. but what's interesting here is we're starting to see some of

these opportunities kind of pop up so europe, for example, with greater fiscal integration we're going to get additional commitment from the ecb tomorrow in terms of monetary support, combined with what looks like a budding economic recovery, or at least off of its lows. they're cheaper than u.s. stocks, so that's interesting. china, as well, kind of, we're starting to see manufacturing output increase part of today's rally is certainly the surprise move in the manufacturing index in china overnight, as well, from a positive perspective. and the last quick thing on tips is that in the aftermath of the global financial crisis, given all of the fiscal and monetary policy, what was interesting is tips outperformed nominals 60% of the month from 2008 through 2012 so for those that believe that we'll see a ramp-up in inflation as a result of all of this policy, tips provide an interesting relative value opportunity right now. >> or maybe even just less fear about deflation, which is what

happened in that earlier time. interesting stuff, guys. thank you, both. michael arone and scott clemens with some opportunities they still in these markets, despite the wild rebound we've been on, tyler, since the march lows. >> and speaking of wild rebounds, kelly, maybe none has been more stunning than that which has taken place among the retail stocks. stuck between a rock and a hard place when it comes to coronavirus shutdowns and then now the protests on top, but the group is up 64% from its march lows and courtney reagan has more hi, courtney >> hi, tyler so you point out a couple of reasons why not all retail stores are reopened, still, we're seeing some green shoots in the sector. american eagle outfitters putting up results today, lifting shares about 14%, now 15% higher there was strong online demand during the shutdowns for the brands, with about half of the teen retailer stores now reopened, executives say they're, quote, extremely pleased with the store productivity, hitting 95% already of last year's levels. executives also calling out a

fair share of pent-up demand that they believe they're seeing across all the markets the best productivity that hits so far in the mall, beating abercrombie's 80%. american eagle denim exert, kontoor brands, those are up as well beaten down department store names, those are among those that are repounding here today and so far this week, with at least some stores in the fleets now open about a month or so macy's up 10% today, 43% in one month. nordstrom up 9%. skbr and just 10% for the month but kohl's, the off-mall department store up a about 28% for the month. and then you've got canada goose shares those shares are higher today after reporting some results, noting stronger asia performance as well as stronger performance online and the quarter they're in now is actually seasonally pretty small, if you think about selling all of those winter coats. back over to you >> that's for sure

courtney, thank you. courtney reagan with the rundown there. coming up, financials and industrials are leading the market rally today with health care lagging it's the only sector in the red, but it's the closest sector to reclaiming record highs. we'll tell you where traders are finding the best buys in that group. and as we head to break, check out some of the stocks hitting new highs across different sectors today. lowe's, ebay, zoom video, lululemon, all up in that territory. there's much more "power lunch" right after this what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. mhm, yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. now offering zero commissions on online trades. we charge you less so you have more to invest. ♪

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welcome back while the market rebounds, the path forward for the u.s. economic rebound remains a little more in question as reproach the 2020 election, especially for black america steve liesman has a closer look in the latest cnbc states of play survey. steve? >> kelly, thank you. yes, the national data on the states of play survey show african-americans more concerned about the coronavirus, more concerned about the economic shutdown effects than either white americans or the nation as a whole. take a look at our first chart here you can see the 28 -- 26% nationally say the economy now is excellent or good, just 5% of african-americans. similar numbers on the outlook with just 16% of african-americans say that they are very or somewhat confident in the economy, in the next year that compares with 38% overall turning to the health issues, a key issue here, how concerned are you about the virus itself 92% of african-americans compared to 69% overall and 64%

of whites. and then a lot of that seems to stem from an actual connection that african-americans report to the virus. 61% say they or someone close to them has been diagnosed with the coronavirus. areas where -- other areas where they're more likely to be concerned, lack of ppe and testing, social distancing, a second wave of the virus and also a recession in fact, kelly, i was crunching the numbers here, and african-americans are more likely to be concerned about things like the unemployment rate, the recession, and getting sick than even white democrats it's not just a party identification thing, these are specific issues we've identified here that are specific to the african-american community, where there's greater concern and the question is whether or not we're going to be addressing those issues >> and so many of there, like you said, the economy, the safety and so much more. we appreciate it, steve liesman, thanks so much tyler? >> all right, kelly and steve, thank you. my next guest says the country

is on the verge, potentially of an economic tipping point. and when shocks begin to multiply like the pandemic and the civil unrest that we are seeing right now, recent history or at least two points in history historecent history suggest we could be on the verge of a lasting and political course correction. let's welcome in jerry cy with "the wall street journal." i'll tell you a little story and we'll start the conversation the other night i was talking with my son, who is exactly the same age now as i was in 1968. and i was talking about some of the things that happened in 1968 and i said, america was never the same afterward and the next day, you wrote a column that basically said the same thing that's why i thought it would be great to have you on why are you persuaded that mismore like 1968 or 1979, which then came and you shouldered in the reagan area in 1980 and not

some just spasm through which we just go back to the status quo >> it's an interesting question and nobody knows the right answer the way i started to think about this was, if you think about points in history where the country really shifted course, it's not because of one shock. the country gets shocked a lot it seemed to me it was at times when the shocks piled in one on top of the other and you mentioned 1968 and this feels like 1968 why? because you had a vietnam that was going badly, the tet offensive, which shocked americans. you had a president lyndon johnson who said, i'm not even going to run for re-election you had the memory of a dark summer, a hot summer, in '67, with racial tensions in the air. and then you had the real coup de grace, which was assassinations, martin luther king followed by robert kennedy. and i think that left a lot of americans -- you know, i was in grade school at the time, but i remember it very well, people felt, the wheels have come off the cart, we've lost control

and that's what really produces, i think, a change in the political system and that's kind of what it feels like now you have a coronavirus shocked followed by depression-like economic numbers, followed now by unrest across the country and it's the one after another after another aspect that i thought made this feel like that >> and then you pointed to 1979, when, of course, the hostages were taken in iran and there was a great wellspring of feeling, that whole situation had been mismanaged it was being handled weakly. and then in the 1980 election, carter was kicked out and in came ronald reagan one difference that i detect now, jerry, from 1968, and even from 1979, is the dysfunctionalty of congress. back then, there was a center in american politics. right now, it doesn't feel like there's much of a center at all. you have extremes on the left, you have extremes on the right,

and not much in the center nobody seems to be talking or willing to do business with one another in good spirit, if good faith. >> i think that's right. and i talked to ron chernow, a historian, and he made exactly that point, that one of the differences now is that the killing in minneapolis that set off the unrest happened at a time of particular economic -- excuse me, of particular political dysfunction in this country. that the system's not working. you don't have democrats and republicans coming together in rooms in the capital right now to talk about what do we do about this they barely talk to each other the president and the speaker of the house can't even stand to be -- literally can't stand to be in the same room with each other. and so you have a shocking situation, and i mean that in terms of multiple shocks, at a time the political system doesn't seem to be able to come together very well and i will add in a footnote that there were three big stimulus packages that passed congress since the -- >> yes

>> -- unrest started >> i was just going to say the same thing and yet, congress did come together to put together three big stimulus packages in the trillions of dollars, presumably because politicians understand one thing. voters will kick them out if they feel they haven't done something. and here, both of them, both sides had an incentive to do something and do something very fast, because they saw the stakes >> right, exactly. and the stakes were enormous and steps that were required were equally enormous. and let's be honest, as cynical as i am, sitting here in washington about this system, it rose to the occasion earlier this year. so maybe it can do it again and maybe we should not despair too much it's an ugly process you wish that it was a little smoother than it is. but, you know, the democrats and republicans have shown they can do this when they want to. and maybe in this environment we're in now, they will have to do it again. that's a possibility

one of the things, though, that i think that you go back to 1979, you had in that situation, and i just finished writing a book about how that year set up the whole reagan revolution. you had series of shocks, you had stagflation, that was an economic shock you had gas prices that were through the roof and gas lines, that was the result of an energy shock. and you had an external shock in iran with the hostages taking over the u.s. embassy and seizing diplomats there. some of these things are just shocks that nobody can control and nobody in congress or anywhere else could do much about the oil problem that resulted from the iranian revolution so some of these things are just beyond people's control. but i think the political impulse is still, let's do something to change course, because we have lost control and that's, i think, the inflection point we may be at now. >> it's very interesting of course, 1979 and the aftermath of that, you lived through it in a very personal way during those days, during which you were detained briefly.

jerry, always good to see you. thank you for joining us today appreciate t it >> thank you still ahead, the health care sector the only one in the red today, but it's just about 2% away from its historic high. we'll tell you what is driving that move. plus, social unrest in the u.s. tensions with china rising as the u.s. bans chinese airlines now from flying into america ian bremmer will be here to break down some of the biggest economic flashpoints we face today. more "power lunch" after this. hey! lily from at&t here. i'm back and while most stores are open, i'm working from home and here to help. here's a tip: get half-off the amazing iphone 11 on at&t, america's fastest network for iphones.

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lunch. i'm seema mody health care is one of the few sectors in the red today, but check out the moves this year. it's one of the few groups that is closest to recapturing its highs set back in january, for whether there are any stocks that could ride the record move, let's bring in mark newton of newton advisers and mark tepper of strategic wealth partners great to see you both. mark tepper, the race for a vaccine has put pharmaceutical companies in focus what's your top pick in this space? >> yes, so if we look at pharmaceutical companies, my favorite would be bristol-myers. so it's been a laggard, and that's what i would be looking for right now, because health care has been one of the top performers since the beginning of the crisis. so bristol-myers has lagged the health care sector by about 6% this year. the reason ilike it is it is a pure play on cancer, which, you know, let's not forget, cancer is still the number one medical problem in the world and now common sense would tell us that before you actually get cancer treatment, you need to be diagnosed. and with that being said, cancer screening was down 80 to 90% in

march because of covid, but obviously, that's now rebounding so as that rebounds, treatment should pick back up, as well the valuation's cheap. stock's trading at ten times forward earnings with a peg ratio of less than one they've got a strong pipeline and are finally getting their swagger back, as well. >> martin, from a technical perspective, do you see opportunity? >> i do, seema you know, both technology and health care have been great performers year-to-date, but we've seen some real mean reversion out of these sectors in the last couple of months interestingly enough, we've seen one of the largest rallies ever over the last 50 days. the s&p is up about 37%. and specifically, i want to look at the stocks that have actually underperformed of late in looking at stocks like merck, for example. merck is one of the pharmas that has been underperforming of late and recently started to show really a lot of signs of good technical strength we have actually broken a four-month downtrend in the stock. the stock is back up over may highs, right near $82.

but the stock is still under, you know, 10% under its highs that it hit earlier in the year. and so that makes it appealing to me as the stock starts to gain momentum. you look at a monthly basis of merck, going back over the last 20 years and see the stock has carved out really a giant long-term base and the pullback we've seen over the last few months has actually not undercut its longer-term uptrend, even from 2009. so that makes it appealing to me you know, looking at the defensive groups after this big market run-up makes a heck of a lot of sense the pharmas have underperformed of late and now this is a stock that's starting to kick into gear i do like merck and i do own it. i expect the stock to get back up towards 92 and above that would be a larger intermediate term rally for this one. >> got it. mark newton, mark tepper, thanks for breaking down health care for us and for more trading nation, head to our website or follow us on twitter >> ahead on "power lunch," after a short break, oil prices have

been on a straight line up since that crazy day more than a month ago, when they dipped into -- the futures did, into negative territory. where do they go from here, what happens next well, it depends in part on what opec does and we will talk a little bit about that in a moment plus, disease and social unrest making big cities a lot less attractive to potential residents and buyers what an urban exodus could mean for the economy, next on power lunch. you say that customers make their own rules.

let's talk data. only xfinity mobile lets you switch up your wireless data whenever. i accept! 5g - everybody's talking about it. how do i get it? everyone gets 5g with our new data options at no extra cost. that's good. next item - corner offices for everyone. just have to make more corners in this building. chad? your wireless your rules. only with xfinity mobile. now that's simple easy awesome. switch and save up to $400 a year on your wireless bill. plus get $200 off a new samsung galaxy s20 ultra. welcome back, everyone i'm sue herrera. here is your cnbc news update at this hour. minnesota's attorney general will be upgrading charges against derek chauvin to second-degree murder in the death of george floyd. that is according to the minneapolis "star tribune," which also reports the three

other officers will be charged with aiding and abetting murder. the attorney general is expected to make that announcement a bit later today. ap says the active-duty troops brought into the washington, d.c. area to possibly help deal with protests are now going home about 200 are expected to leave today. a total of about 1,300 active-duty troops were brought in to the capital region and nba leaders are reportedly getting ready to approve a plan for the league's return espn reports the plan calls for 22 teams to play eight games each before the playoffs begin the nba board of governors is expected to approve that plan tomorrow you are up to date i will send it back to you, ty >> and this was just what our friend tilman fertitta said was going to happen on a timeline very similar to this said it yesterday right here on "power lunch." sue, thank you very much my son, mac, is now thrilled >> i'm sure. >> let's take a look at the markets which are -- you bet he

is -- which are at daily highs right now. look at the industrials, up almost 500 points, as you see there. nearly 2%. s&p up a percent and a quarter nasdaq, the relative laggard, but still up three quarters of a percent. oil closing for the day right now. it, too, is up about a percent or so. lots of reports on what opec might do next. and for some insight here, let's go down to my friend, brian sullivan for the details hi, bri. >> you know, i am familiar with this fertitta fellow, tyler. and i know that he likes oil at 40 more than 20, because he's in a town called houston, where apparently oil is important, i'm told >> evidently >> break some news here about oil. all right, great stuff by the way with tillman yesterday here we go opec right now, it's opec silly season already the meeting is scheduled theoretically for next tuesday let's get to that. here's what we know. right now, folks, there is no opec deal. you see headlines floating around, opec deal. there's no opec deal, because

opec has to vote on any deal that's rules what you're seeing is the saudis and the russians are coming out. i spoke with two different sources today and they both said they are aligned they don't want what i'll call guys the march mess again. they want the world to know, there is no price war, the saudis and russians, they socially distanced hugged and made up, everything's fine between them they would like to extend the current 9.7 million barrel per day production cut, that record cut, for one-month increments. in other words, they'll extend it maybe to the beginning of july, review it again, maybe extend it again. they'll probably wind that down. they can't do 9.7 million forever. they'll probably go to their pre-planned 7.7. here's the problem one word iraq iraq, guys, is not complying they are cheating. both sources i talked to said the saudis were upset. they were saying that iraq needs to get in line, everybody's taking their pain, except for iraq so nothing yet set in stone. the quote, meeting, is still set

for next tuesday i say meeting in air quotes because it will, of course, be virtual. there's also this iranian issue. the iranian minister, kind of a hot-headed guy nice enough guy, i've met him many times, but he tends to walk out. the opec governor to iran, very cool, very calm levelheaded guy. unfortunately, unexpectedly passed away a couple of weeks ago. he often kept that energy minister in check. i physically would watch it. you know, the guy wants to storm out and he would bring him back. he's not there anymore so, guys, it could still get heated, even virtually nothing is set in stone. >> bri, the new shot looks good. >> thanks! made it myself >> i'm like, is he in the studio looks really good. >> water colors. that bob guy with the -- >> yeah, it's lovely anyhow, we appreciate the info we'll see what happens with opec next week. meantime, the coronavirus and the work-from-home trend that it caused and the social unrest

could all create permanent changes to the way we live here's what redfin ceo told us about a move out of cities >> it's a massive migration. we're seeing a great dispersion of americans across the country. why would you pay the tax to live in san francisco, seattle, new york, los angeles when you could have the same job but be in charleston, south carolina, or sacramento or grand rapids, michigan so we see many people refiguring where they want to live. they want to spend more money on their home, but don't necessarily want to pay the tax to live in an urban area >> well, robert frank is joining us now with a look at how this is affecting one urban area in particular, new york city. robert >> yeah, the largest market in the country, kelly you've got the protest covid and of course the business lockdown, all putting pressure on a market that had already been in decline for two years before this. now, in may, the number of contracts signed in new york city fell 87%. that is believed to be a record. new listings in manhattan

falling 80%. so you've got a lack of buyers, lack of deals, and a lack of listings but the hardest-hit segment is at the top when you look at deals for apartments over $4 million, there were only 16 in may totaling $100 million. that compares to 111 last year totallying more than $1 billion. so that's a 90% decline at the top. and you've also got, as you just mentioned, early evidence of thaturban flight urban digs did a calculation for me looking at contracts and listings where they look at demand and they found that while demand is falling sharply in new york city, it is rising in every single surrounding suburb. you look at westchester, greenwich, and in new jersey, you've got bergen and monmouth counties all of those counties seeing increases in demand, while mound is declining now, brokers in new york city are barred right now for showing apartments they're hoping that new york city real estate opens around june 22nd. and it is only then that we will start to see some deals and figure out where the prices will eventually fall.

kelly? >> there's bigger implications, robert, though, if people are leaving the city, especially for the tax base >> so here's how the pain cascades down. you've got the wealth destruction at the top, of course, but property taxes are the number one source of revenue in new york city $30 billion a year from property tax. if that declines, you've got less hospitals, less police, less fire, less for education. if all of those services and jobs get cut, new york city becomes even less attractive you've got property prices and deals falling even more. and that begins a spiral that could be very worrying, even harkening back to the 1970s, if we get there >> yeah. robert, thanks very much robert frank looking through some of the implications, if people flee the cities tyler? >> all right, kelly. and thank you, too, robert stocks are at session highs, folks. the nasdaq little more now than a percentage point off its

all-time high, if you can believe it stocks shaking off coronavirus and the nationwide protests. up next, we'll take a look at the third big issue the markets seem to be ignoring, for now at least, and those would be tensions with china. we'll be right back to discuss that and more after this 300 miles an hour, thats where i feel normal. having an annuity tells me my retirement is protected. protected lifetime income from an annuity can help your retirement plan ride out turbulent times. learn more at protectedincome.org. 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.

i'm an associate here at amazon. step onto the blue line, sir. this device is giving us an accurate temperature check. you're good to go. i have to take care of my coworkers. that's how i am. i have a son, and he said, "one day i'm gonna be like you, i'm gonna help people." you're good to go, ma'am. i hope so. this is my passion. if i can take of everyone who is sick out there, i would do it in a heartbeat.

if i can take of everyone ah, the weirdest.there, i just feel like everybody's always disappointed in me and i never live up to anybody's expectations. scott! hey, thanks for listening to all of this. you're one of the few people who treat me you know like a person. you're welcome. welcome back the latest escalation of tensions between the u.s. and china, the department of transportation is suspending all chinese carriers from flying to the u.s. let's get to phil lebeau with more phil >> this is not a surprise in the airline industry, because the negotiation between the u.s. and china, they have not been going well over the last several weeks. so here's what the d.o.t. announced today. it will be banning all chinese

flights, flights from chinese airlines to the united states starting on june 16th. that impacts four chinese airlines and that essentially cuts service between china and the u.s. and vice versa. it's going away in terms of passenger flights. cargo is still operating, but in terms of passenger flights take a look at the adrs of two of the chinese airlines that are impacted here. remember, the chinese airlines have continued flying, even after the u.s. stopped their flights to china they average about 34 flights a week last year, 8.5 million people flew between the u.s. and china, as for delta, united, and american, the three carriers that have had service in the past to china that would like to resume service, they haven't been flying there since january 31st and remember, they have talked about bringing back their service at some point. and that's the snag in the negotiations china and the u.s. have been unable to agree in terms of when those flights could resume, what frequency of those flights it would take place and as a result, the d.o.t. and

the trump administration have said, you know what, you stop flying here for a while. >> and it's a symbolic sort of showing of how the two countries are disassociating in many ways these days phil, we also want to ask you about boeing shares are rocketing up 12% today. they're leading the dow. >> right there's a couple of things going on here. one, if you look at the fact that they have already announced the job cuts, so they're bringing the cost equation down. they've also said that they expect to have the max recertified, potentially, in the third quarter. so if you believe that, there's some optimism there. and the fact that, look, how much worse can it get in terms of orders? you already know that a number of airlines are not going to be placing new orders, but you think maybe you're close to a bottom in terms of the order book and you also have dan loeb's third point. buying some of the boeing debt you pauut all of that together n that's building into the shares moving higher today. >> phil, thanks very much. that's phil lebeau with all the latest tyler? >> all righty. as we just mentioned, tensions between the united states and china do seem to be growing, and on top of that we're still in

the midst of a global pandemic and civil unrest here in the united states erupting basically nationwide here to talk about the multiple crises facing the globe and america and the geopolitical fallout from it is ian bremmer, president of the eurasia group ian, welcome good to see you again, sir >> good to be back, sir. >> fantastic you know, i don't want to spend much time on this, but i do want to get your thoughts on why stocks in the u.s. are so high why? >> one, political risk is never well integrated into equity prices, because you don't have a specific timeline around them. and secondly, because the fed, and all the central banks, globally, have been acting incredibly strongly. they haven't been coordinated, but they have been rowing in the same direction i think that's provided a lot of confidence i am certainly much more possess musk about where the global economy is heading than a lot of the people, the analysts i've

seen on the stock market, as someone who focuses on domestic and global politics. but, you know, historically, it's not surprising to see a disconnect like this >> some fascinating commentary in your note from the first of june, particularly surrounding american politics and the president's tactics involving coronavirus, the racial divide versus law and order i'm going to set that aside for this conversation and go to the question of china. how do you see america's relations with china evolving over the next five years and does it all depend, basically, on whether president trump wins re-election? >> well, it certainly doesn't all depend on that perhaps the only major foreign policy issue that has broad bipartisan agreement on is there should be a tougher-line policy on china whether it should be america primarily by itself or whether it should be more multi-lateral is an argument that many of the trump administration and the erstwhile biden administration would have but let's keep in mind, if you

want to ask where there's been a bigger change in the last five years, with president trump from obama or with xi jinping in china, it's very clearly xi jinping. and not even close belton road, ai by 2030, ending autonomy for hong kong, anticorruption, domestically, massive consolidation of power, ending of term limits. this is a dramatic change for what china looks like domestically and internationally. i mean, trump tweets very differently than obama does. but in terms of his actual policies internationally, when you get rid of all the rhetoric, there's a lot more constraint on what any american president would want to do, because of the balance of powers, because of the deep bureaucracy, because of whistle-blowers and all the rest so i really don't think we should overstate how much importance november has. rather, we should focus on the fact that these two countries that haven't trusted each other for a long time with increasingly decoupling their

interdependence. and that means that the level of conflict and confrontation is going to go up >> i want to get to hong kong in just a moment, but i'm going to pause here and ask you to comment, if you might on the possibility, however remote it might be, that the phase i trade deal with china might not eventua eventuate. you see it as a possibility, a probability? >> senior folks in the white house tell me 50/50 right now. their focus is, can you imagine the chinese getting away with, you know, this virus and not having to pay for it after covering it up for a month, while the chinese were traveling all over the country and all over the world so, look, they know this is a very useful position for them to have in the run-up to the elections. and if they didn't take a tough line policy on china, they would get whacked by the biden folks of course, if they break the deal, the reality is that biden and trump's option is going to say, what, you signed this deal

and it lasted for houw long and it was so weak, why did you get in bed with xi jinping, your buddy, to begin with that plus the economic hit makes it harder to keep the deal, but the chinese are not buying anywhere close to the level of ag they promised they were going to and on every other front but the phase i deal, these two sides are going at each other. so, you know, when you look at that in the context of the run-up to the election, it's clearly going to get worse >> let's talk a little bit about hong kong, if we might i remember last week that the president said, hey, be ready. i'm going to have a major announcement on china. people thought it might have to do with hong kong, but it really had to do with withdrawing support from the w.h.o, which has been a thorn in his side, a pebble in his shoe how do you see -- and his comments on hong kong, by the way, were relatively more nuanced than one might have expected given the fact that hong kong's special status has

basically been abrogated how do you see things playing out with hong kong, number one, and number two, is taiwan in any kind of measurable risk? >> well, you said that their special status has been abrogated. and indeed, pompeo has said that but actually, the new legislation hasn't been written up yet and i've been talking with democratic legislators in hong kong and they say, look, there's a lot to play for. we need american pressure right now, precisely because the chinese haven't yet written or implemented this law so, they said they're going to abrogate it, but they haven't abrogated it yet it's like when president trump says, i'm leading the world health organization. well, actually, you have to pay your arrears to formally leave and to trump to announce he's leaving and it's still a year before the americans can pull out, we may have a different president by then. so in the same way you might not want to take every trump tweet at face value in terms of execution, you may not want to read the headlines on the chinese before you dig in. so, i mean wing it's correct that trump is -- he's hedging on

hong kong. and he doesn't want to end their special status first, because he hasn't seen what the chinese government has actually done yet. and i think that's fully appropriate. and lesecondly, because the americans make a lot of money in hong kong and there are a lot of serious investors and funders of the trump administration that really don't want that special status ended >> i want to -- i want to squeeze in one more little question, but i hope it's an interesting one. and that is, your business, international consulting international analysis, travel, speech making. how's it going to change what's the future for ian bremmer and eurasia group look like >> well, demand has never been higher, but a lot of the clients, of course, are hurting very seriously i mean, when you work with airlines, for example, or you work with hotels and you see what's happening with them, a lot of those clients aren't going to make it so it's going to be a hell of a lot of work for not necessarily

a lot more revenue but if you ask me why i got into this field, it's not to maximize profit, it's because i really love what i do and in this environment, the fact that you feel like you have a purpose, you can actually do something that matters to people really is fulfilling i frankly have never seen morale so high inside the organization. if we're all about talent, it's talent that wants to work right now. >> interesting ian bremer, always great to hear your perspective thanks for your time today we appreciate it kelly? >> as things start to return to the normal after the coronavirus shutdowns we'll have the story of ones that benefit and one that might be hurt and kim kardashian and a ceo under inctntdime what a confusig and frustrating experience getting hearing aids can be. that's why i founded lively. affordable, high-quality hearing aids with all of the features you need, and none of the hassle. i use lively hearing aids and it's been wonderful. it's so light and so small but it's a fraction of the cost

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welcome back for "power movers." microchip tech raised guidance investors are sending the stock up 12% today campbell's soup raising earnings expectations for the year on a big increase in demand soup sales are up 35% even though they couldn't make soup fast enough to keep up with demand the stock falls today as investors' appetite for coronavirus stocks is falling. coty is jumping after saying it was in talks with kim kardashian west on a possible collaboration. 12% jump for them. and pilgrim's pride, the ceo indicted for price-fixing by the justice department the shares are down 11%. >> kelly, thank you. the dow rising nearly 500 points, really what a day it has been there you see it, 498 on track for its first close above 26,000

since march 5th. right now there seems to be a little bit of a disconnect as we talked a moment ago with ian bremer between what's happening on wall street and what's happening on main street we'll talk about what it could mean for stocks next on "power lunch.

♪ ♪ ♪ ♪ welcome back stocks are rallying again today with the dow and all major vrge averages in the green and the s&p up 40% from the march 23rd lows it's been retail investors jumping in in the middle of the volatility bob pisani has the ceo of virtue

financial for more on these trends bob? >> thanks, kelly the important thing, doug, and thanks for joining us, i think is what's going on with the marketplace. we've been talking about this disconnect between the market and what's going on in the rest of the country, indeed, in the economy. the s&p is only 8% from an historic high and yet we have 20% unemployment and civil unrest in the streets. can you square that circle for us and help us understand that? >> i think the macro answer is pretty straightforward your last guest said it as well. you have this unprecedented global stimulus, whether coordinated or not, bank of japan, the treasury, so the marketplace and the economy is awash in money and liquidity so certainly that drives enthusiasm and buttresses, if you will, the marketplace. the other is really micro. there are winners, if you will, from the situation

i ha you have companies like zoom and shopify that are trading at multiples unprecedented. zoom's multiples, 1,200, 1,300 times forward earnings and that makes up a larger part of the index if you will. so it looks like the indexes are coming up. you see the winners and losers as well, so much liquidity and the stimulus -- >> yeah. we want to note that you spoke today at the piper sandler global exchange. your trading numbers are up huge you're one of the biggest market makers in the world. i wonder if there's a sign the retail trade strbak. ameritrade reported a big increase in accounts, schwab as well is there any sign this increase in trading is do to retail traders and more accounts being created? >> certainly, that is part of the phenomena in the united states it's excess in opportunities you have a lot of the discount

brokers, wealth managers go into zero positions people like to do things for free it provides more access. off lot of people working from home with more time on their hands. cnbc is in everybody live's room now, like the daytime soap opera. everybody is watching it people see an opportunity. airlines trading at $7 instead of $50, maybe i bile that. you've seen a new breed of trader but as well i think it's come down to zero commissions, some of the brokers are doing fractional shares to help with higher priced stocks so i think you're seeing a structural change. >> okay. doug, i need a 20-second answer because we have to go. off thousand people working for you in different offices you mentioned working from home. how many are going to be working from home on a permanent basis for you? off big trading operation. what's it going to look like a year from now? >> i would say a year from now, 20% to 30% will be at home right now we have about 5% working here that number will be closer to

10% to 15% by the end of the year and the rest will do some kind of mixed home office kind of policy. >> okay. doug, thanks for joinin uing us >> adding to the number of companies who have kwho will have a lot of work from home in the future see you tomorrow on "power lunch" with tyler. "the closing bell" stem cell st now. >> i'm wilfred frost with sara eisen. 59 minutes left in the session s&p up more than the highs of the session, jumping an incredible 40% in the last 50 trading days the dow is up 1.8% here's what's driving the reaction the reopening trend as states continue to loosen restrictions, a rotation into cyclical stocks beat, beaten down sectors like bank and