bullishness, but certainly a calmer feel right now and that's a risk >> you got call waiting -- if we call, answer we're going to have you on again, soon, jim we have to go. we have ten seconds. we'll take a quick look at where we are more gains today after a big gain last week make sure you join us tomorrow "squawk on the street" coming up right now. good monday morning. welcome to "squawk on the street." live from separate locations futures are green as the cyclical growth trade gets another leg this morning new york city begins its reopening today. 100 days after its very first confirmed case we'll get a fed meeting this week opec extends cuts through july and the ten-year 90 basis point, jim. as they were just saying on "squawk" about the curve

steepening and broadening and a lot more >> this is one of those rallies that not only is taking people by surprise, but continues to roll and we're seeing major gap ups i was mentioning on "squawk" major gap ups in the morning more of the 1980s action and it's very interesting because stan talked about his views of the 1980s and they're pertinent as ever. we have incredible and we have a president who wants new highs and we have stocks that are recovering well ahead of the fundamentals but some people can say that is what should happen look at the airlines we are hhad some numbers from pl lebeau and almost as if people decided covid is over and it's a v-shape rally and you better get on board >> and that makes you a little

uncomfortable. >> well, i just think that the friday rallies, as sweet as it was off the unemployment number has not put out any sellers, carl and i often think that there have to be sellers at a certain level. i mean, can you really take the banks up so much when there was so much selling of citi, 20 points ago and now no selling i mean, where are the sellers, carl and i don't see them they're not attracted by american express on the downgrade this morning they're not attracted to bank of america. even though we haven't seen numbers lately they're not attracted to wells fargo, even at 22 they were very well attracted it's as if whatever happened has vanished kind of like we set the world back to february and, david, i think you know when you look and say simon properties because you look at deals all the time simon properties is up 40 points why? because the people were wrong

who sold it in the '50s? it just seems like people are very wrong selling including warren buffett with the airlines or it's fanciful and we're just dealing with a market pump by the fed and a market where people just say, i have no choice i have to come in. i missed the early part. stan didn't like the market. he was wrong we've had other people, obviously, who were wrong and maybe they changed directions. ray dalio wrong. the wrong smart hedge fund trade has decimated people >> no, it has. jim, listen, what you just said is what you hear and i hear over and over again people who are perhaps less positive throwing their hands up and simply saying it is all about the fed. maybe it's as simple as that you just can't fight it and until that condition changes, i can't expect perhaps that much of a different market response that said, to your point, when we look at the moves, for

example, simon properties. which one has a troubled business for many months ask ye and years to come. not saying it's completely hobbled, but it's not certainly going to be what it was. >> right. >> and so many others. i guess, jim, i come back and say, okay. as i'm sure you had these conversations with asset managers when, what is going to make the difference when are things going to return to some sort of sense of, well, this is really what the business is looking like as opposed to this v-shape >> i think it has to be earnings we're in a period where there is a dearth of information. that dearth of information is being viewed positively, i believe. the fed has allowed anybody with the exception of hertz to raise money. and judging by the common stock, people even think that common stock could be worth something and some sort of reorder you know that is too bullish, david. >> most likely recovery value and bankruptcies

is rare, but it does happen. >> it does happen. >> i heard the same diamond off shore, that was another one. and people talking now about oil and that huge rebound that's taken place there, guys. will there be a recovery value in that equity you're starting to hear that but to your point, jim it's unlikely typically, but perhaps reflective of this current period that we would see significant moves up in the equity of two bankrupt companies. >> carl, what are things if you replay the tape and you listen to the strategists, most of the strategists were trying to figure out whether you're going to have an l-shape recovery or whether it was going to be a squush v-shape was limited to one person and it was president trump. it is election year and he goes with a v a u seemed to be positive for many of the strategists and now it doesn't even look like a v, now it just looks like a checkmark and i think a lot of

us who have been living with masks and been living with gloves are saying, well, wait a second social distancing, what is that about? why do we need these is the answer because maybe this is why maybe this is why things are okay maybe this is why people are flying again because they feel a little bit safer with a mask. and we didn't see the big explosion of covid cases, but many more covid cases out west it's just new york, which is the epicenter, which feels much safer. and the safety train is really at work here people feel safe to buy stocks do they feel safe to shop? i've got two big amazon reports on my desk that say, no. they feel safe to shop by their pc and by their cell phone, which is so easy my wife is what is this, i said, what did you order i ordered this morning stuff

i don't know it's order away. wow. >> you're referring to rbc on amazon today goes to 3,300, a street high. and to jim's point, a large part of their thesis. jim, they see 200 million prime subs that is up 50 million subs since january. but that doesn't mean people don't feel safe. it just means they might have discovered a more, convenient way to shop. >> right but amazon, walmart, etsy, ebay, shopify. that's how people are shopping and yet simon properties the big mall company, the stock is saying it's like nothing happened and then you see the stock of kohl's off 12 to 24 and someone downgrades gap from 15 to 13 i want to know who is going to the mall i want to know because these reports are basically a poker game you know, i see you at 3,000 and i raise you to 3,200 and that game has been going on

and there's just not that much shopping we also have the possibility that people aren't staying home as much. some people are opening up they open up and maybe their stores now, when you go to stores in manhattan, they're boarded up, which is rather -- it is so counterintuitive to have both the mall and amazon doing this well we just don't have that many shoppers >> look at those numbers, will you. where are the sellers, david where are they >> i don't know. hiding they're hiding they're waiting. for something. and maybe to your point, jim, they're waiting for earnings when it becomes more apparent or pe investors can take stock, so to speak, of where things stand and what the priority of some of these businesses are that said, jim when you talk about the biggest members of the s&p which is funny now. you say, well, the s&p is flat for the year and, yeah, but

that's because it's made up of these huge companies that have a huge waiting in it it's a market cap weighted index. but your point amazon, microsoft, alphabet and, of course, apple and apple's business continues to be quite strong i know there's concern as there should be about china and response to what we've been doing to and they do add up to $5 trillion in market value. >> that's from the march bottom. so many people deserted apple and what is the apple thesis katie, you reached this. the spike in service revenue why? again, people had nothing to do so they signed up and apple's got more of a entertainment feel to it. microsoft. what happened? well, microsoft teams did well

microsoft had new -- there's been new pcs amazon, obviously, is such a juggernaut that you just -- it's become a fact of life. and these stocks are amazing i don't know why alphabet is running because it doesn't done anything of substance other than the fact that their cloud business is better but been acceleration. >> they're cutting costs >> you know what, this pandemic has moved digtuization ten years in three months. ten years and it continues and it continues and you see the cloud stocks trading at levels that i've never seen them before look at facebook since it announced. facebook shops it's at 10% move since facebook shops. why? because people are shopping online because small businesses had to go online because their brick and mortar closed and they never go back. we can open these stores and the method they're going to be selling things is on the web

what a revolution. >> it is it is a revolution and that's one big reason why it took guys like stan so much by surprise. if you missed it earlier this morning he talked to "squawk" about he was humbled and way too cautious and how he underestimated the commitment of the fed. take a listen. >> what is clearly happening is the excitement of preopening is allowing a lot of these companies that have been casualties of covid to come back and come back in force with a combination of hopes for the fed money and, in particular, a vaccine where the news has been very, very good since that economic and i think probably more important than the market here is that expansion and the fact that the winners to

leaders gives you a big breadth expansion. >> by the way, jim, he referenced the a/d line 2-1 in ten straight days which is an undefeated indicator >> the oscillator i follow, same thing. the only time it had this run was the run off the bottom in 2009 when you listen to stan, here's what you have to remember. stan's real good but stan is always, when he has gotten it wrong will tell you. but it's not his job to come on air and say, listen. i got it wrong three weeks ago and people are still in there saying, hey, stan is negative, he's negative. he wasn't negative, he was humbled. and what happened is carnival cruise, the airlines, the stocks that are most affected by covid, those are doubling and tripling and should they be well, the fed gave them the back stop to do all sorts of deals and treasury gave money to the airlines and i think those runs are absurd

>> jim, we're going to get a lot more into that after a break we'll talk more about the fed and what they say as the markets and spreads have recovered a bit. we'll talk more about stan drukenmiller and boeing poised to open another 8% today back in a minute ♪ ♪ ♪ ♪ ♪ our retirement plan with voya gives us confidence...

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welcome back, guys it's been a long time since we had a deal we could talk about in terms of batting it down of it not being true in the current moment over the weekend, bloomberg reporting that astrazeneca had approached gilead another very large company that has been a lot in the news of it having the only treatment right now remdesivir for covid-19 that they had approached them about a potential transaction. what i can tell you this morning is that there's nothing going on now. that there may have been a ceo to ceo approach. it's not clear how far if at all that got i have spoken to numerous people who have advised these companies in the past. there does not appear to be anything going on right now and, in fact, i think nick reporting

similarly at astrazeneca has nothing and the uk takeover panel which would require astrazeneca say something were there something occurring here remember as a uk company so, i think it's safe to say that there is not anything going on currently between these two companies. even though there may have been a conversation by the way, both ceos having worked together a number of years ago at roche they know each other well. is it possible, certainly, that the ceo of astrazeneca brought up the idea? no overlaps in terms of their product portfolios but the overriding theme in pharma which is if you are looking to sustain your business, you still need to spend a lot on rnd and a bigger revenue line allows you to spend more on the rnd line, jim. doesn't mean that these kinds of things aren't going away as an idea it does appear perhaps trying to

figure something out for astrazeneca which has figured over the last few years prominently in a lot of different, at least rumors but, again, i think i can tell you safely here. there's nothing going on between these two companies at present >> well, because gilead, obviously, has developed remdesivir and part of the cocktail but more importantly astrazeneca teamed up with the university of oxford and talking about 2 billion doses of a vaccine to be ready at the end of the year. why the heck would they need gilead astrazeneca is on the way up and gilead is questionable and it's questionable because they're not out to try to make a lot of money on this. i think astrazeneca should be up they have done a terrific job. it is rather remarkable. would the oxford deal work i don't know i recently said, don't bet against science and i thought it was interesting because i was ridiculed in "new york times"

magazine to say don't bet against science. david, you'll know this animal house saying don't bet against america. i mean, i always thought the most outstanding character. >> and it had aspirations to be a university, but it was a college. >> i thought it was a graduate school but, anyway, what matters is betting against science is certainly not, not made you any money in the stock market. but there is a notion and i think, carl, we talked about the covid index that most of those stocks are now in the past and what we want to do is be on rocket fuel. we want to be on slumber and halliburton and apache apache has tripled since the quarter began and we don't want to be in and general mills and

campbell soup. i mean, they had a blowout quarter and the stock went down. that said everything the only question now will the cloud stocks that are now selling at 14, 15 times sales continue the move given the fact that they are regarded as d digitaization stocks not just work at home stocks? >> that is a key distinction, jim. to your point on crude the shale companies turning on the wells we'll talk about opec plus meeting in a minute and by extension some of the reported job cuts at bp 15% of their workforce we're back in a minute a grandfather of 14.

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time for a mad dashand get ready for an opening bell on this monday morning. eight minutes from now we'll get started with the broader markets. lulu lem lululemon. >> sure kohl's stock has come back and macy's since it was able to raise some money and we don't have big business in our own square people have decided that

lululemon has transcended the bear market. previous price target 230, obviously, that's way too go lo and goes to 360. covid-19 hasn't tempered expectations or valuation and this is another piece basically saying, all right. i can't take it any more you have to buy lululemon. is that the right thing to do? i think what has happened in this market is that is the most dangerous question you can ask tomorrow ron baron is going to be on "squawk box. do you think he is going to temper enthusiasm for tesla. we're in that kind of market the 1980s, someone is coming on wall street week and they're going to recommend lululemon and you have to buy ahead. we have enthusiasm that i have not seen about stocks. almost as if every new person at robinhood has decided, you know

what, i got to play. and robinhood has more than 10 million people and they are in there buying and buying and they haven't learn to sell. sell, i think, has alluded them. not in their vocabulary. >> no. and certainly not in the voc vocabulary of those who own tesla. 915, 916 up from 885 close >> how about $1,000 by the time ron baron is done. remember we used to do that kind of stuff >> those nice sweaters he likes. i'm looking forward to that, as well >> and like $1,000 signs >> an opening bell, which we'll get six minutes from now stay with us

live shot of times square. new york city. the nation's biggest covid lockdown essentially begins ending today as phase one goes into effect. construction, manufacturing, curbside retail and subway back

to 95%, jim. they're saying 400,000 irk withers could return to work today. >> that is very exciting i think happening ahead of when people thought the beginning of a return is going to be very bullish again, i'm watching macy's to see what happens there we're all trying to figure out what does it really mean can you open the restaurant? where is the space the city has always been a little opaque, but i think everyone, anyone who has a little spare space is going to go for it. maybe we're back wouldn't that be something >> it would be something i mean, hudson valley, david, closer to, you know, the north of the city goes into phase three tomorrow that's indoor dining so, now we're getting into some really interesting case studies. >> we are. and the willingness of people to participate in indoor dining, which at least according to the experts being indoors raises the

risk much more so than being outdoors but, you know, jim, i wonder we want to get back as quickly as possible to normalcy. we all do. much of the country already is sort of way ahead of where the new york area is but when you talk about those people who work in office buildings and the service sectors that drive the economy of new york city and much of this country and you talk about elevators where you're going to limit people to four and you talk about transportation, which in new york and other urban areas, but more so even in new york than anywhere else in this country or this world are people relying on the subways you talk about the public schools in the fall and how they're going to open and how they need to there are still a lot of questionmarks as to how fully open you can get not to mention, of course,when broadway will reopen or when you can ever expect to go see a team play in an arena or a stadium or a tourist show up to be in new

york >> right i think it's the crowd issue can we have crowds now, when the casino had crowds, but they had spent a fortune making that place covid, as anti-covid as possible they brought in john hopkins and they really took a hard look at it a lot of restaurants will get out of the social distancing thing because that's the death now for them but we also want to know, who is enforcing it what happens if you don't change what happens if you just let people come in if someone got covid at your place. >> yeah. >> speaking of which, jim, there is the opening bell. a look at the nasdaq two weeks tomorrow it's been two weeks since the new york stock exchange partially opened its floor. i'd be curious, jim, to get updates on new cases at the exchange we have heard very little. >> very, very little it is, the cases that we're hearing about are really not around here but i think, also, a

belief that i think untrue that there was something going on in new york that was not going on anywhere else. maybe it was our leaders i think it was a novel virus we didn't know what to do. i think we haven't talked nearly enough about how they figured out how to treat people. they recognize it wasn't a lung disease, that it was a circulatory disease. they recognized that you don't put people on ventilators and other methods to do it and i think that what has really gone wrong in viewing new york is that it was the test ground for everybody else and why don't they talk about it why don't people talk about how we didn't know what we were doing and there has been tremendous progress being made and no one wants to talk about it no progress. but i think we learned how to treat people particularly because we found out it was circiallatory

once we did that, major strides made >> "the journal" has a fascinating piece today according to the "journal" study the virus spread not based on how dense your population was but on how crowded the households were. areas in the country with denser neighborhood had more than cities like chicago. we had to go a >> that is true. as we learn more and become more confident in what we know, given how much it has changed in terms of what we were being told a few months ago you can understand why there is not as much confidence i think there is a sense, jim. we're going to open and we're never going to close again that is simply out of th question at this point the question of closing down the economy regardless of what comes and we'll take it. those who are at higher risk are not going to be full participants in this world until

there is a vaccine but otherwise we're going back >> yes again, i talked about other areas of the country the onus is on the people who frankly are at risk and the other people are going out. where you were that nobody could go out and i think the fact that nobody could go out was anthetical to the way and certainly the way they did it in madrid and certainly the way they did it in milan and they didn't do it they're not doing it in the south and i think that they're not going to do it in the west and other than california. but we wrecked the economy and we wrecked the economy because we didn't know enough about the disease. the w.h.o. just told us, you know what, masks are good. now, look, the science they were looking at the science as it was and it was wrong but they should have been looking at things like thor which i have on tonight. a recreational vehicle company and what a cool way to go around

the country in a recreational vehicle. has anyone tried to buy a bike there are no bikes >> yes yes. i've tried to buy two bikes and, believe me try getting a boat these days, jim. >> it is impossible. i'm so glad i got my bike, my 18-foot boston whaler. guys, anyone who wants it. $50,000. $50,000. it's only ten years old. >> jim, i can't wait to hear thor because their commentary so far has been not just about the quarter, but about how customers are buying rvs to use as their workspace and then travel and combine it the new commercial real estate >> my daughter was trying to figure out how to make an air stream into a wave to sell cupcakes i'll back you in a second. that sounds like a great idea. people don't want to stay in hotels they're afraid people don't even want to pump gas. but when you're in one of these

thor vehicles, i think you're considered to be in a tank and no one can get you and it's an incredible -- by the way, the stock bottomed on march 23rd so many stocks bottomed when people thought the world was going to end and the airlines bottomed when warren buffett sold how about the fact that rich people really panicked and people just at home stuck with it you have to point that out and the robinhood people they bought throughout. that's actually robin hood >> i understand. but, again, you're not a buyer of the airlines here, jim. >> well, i mean, the numbers are so bad and i just -- look, i think if i were, again, if the treasury secretary what a great opportunity to caching american airline opened their clubs which i can't get in because i don't have the credit

card and then giving people buyouts. now, is that the sign of something that you really want to double down on when the stock was at 10 and the price target of one i do think a lot of the airlines are doing well, but what they ought to be doing is issuing stock to pay back some debt. the debt's horrible. and you want debt? look at the cruise ships holy cow an interview in the telegraph this morning with carnival the stock, look, they're not even -- there's no cruises and what a run the stocks had from $8 look at that there are no cruises >> yes >> and they're burning $250 million a month. well, i guess, you know, you got to be lucky than good because those are rallies that are as crazy as the simon property rally. i mean, the rallies are crazy. now, it's going to turn out that royal goes to 100 and i'll look like all those people who said

it wouldn't go mapast 20. these are good runs. imagine if they start cruising i told you -- >> i don't know. maybe the algorithm is based on them starting cruising and then you actually sell the stock. it's only until they start cruising that you don't. >> norwegian, alaskan, come with me just a few couples >> sounds cold >> great solarium. >> do you even know what caving is. >> the glacier it cavs off from the glacier >> david, that's so good >> yeah. >> thank you >> that entitles you to one free trip to t.j. maxx >> i'm paying attention to the climate change and rising levels >> climate change. remember that? the oils are going crazy hey, bp, if they fire everybody, does it go to 50 >> yeah, guys, that's the up to 10,000 is what reports say and chats by the end of the

year 15% of the workforce, jim. deut deutsche has a chart out right now 50% of u.s. households experienced a loss of income because of covid when does that start getting talked about how much can cruise bookings go up if so many households are less well off than they are a year ago >> i see the nasdaq hitting an intra day high and i know that the rich get richer in terms of amazon and apple i think apple is one they can't manipulate early on. you can watch the crawl starting at 5:00 and uccan see what theye going to gun whoever they is. the cruise ships keep going and the numbers aren't going up. now, maybe the people who are gunning these stocks are taking a year-long view but it is hard to believe that the nasdaq is at a record high unless you genuinely believe that apple is going to have a

blow out and amazon is going -- maybe they are the amazon price target similar increase today are extraordinary. but also like the kohl's and the nordstrom. almost as if everybody believes, we're going shopping i don't know what that was they wouldn't let us do things but now we're allowed to do things we're americans. we shop. we are not americans and we go work in american tool factories. right. >> we also order in a lot of food and, guys, that takes me to hitting a couple situations. earlier we discussed astrazeneca and gilead no talks going on between these two companies at this point but a lot of talks between uber and grubhub trying to get to a transaction under which uber would buy grubhub all stock deal, as you might imagine our the weekend our colleagues at cnbc.com interest in grubhub from two other companies eat take away and delivery hero.

european-based companies and they don't have listings here in the states and very quickly if you were to imagine a deal, of course an all-stock deal, again, in the current environment. one cannot imagine a cash deal in any way in this industry. and, so, they would probably have to get listings here in the u.s. to make something like that effective. but it does not mean that there isn't interest from those two companies in grubhub i can tell you, as well. people close to grubhub continue to indicate to me a great interest in being part of consolidation in that industry that is why they were in these talks with uber. but, jim, what i also continue to hear and we followed this pretty closely at this point and not really about price any more and we were talking a great deal about that ratio for its shares and what grubhub wanted but they have gotten bogged down in the details of anti-trust concessions. grubhub is looking for language on regulatory and how you treat

your workers and pricing that would, in their opinion, some of the concerns among the anti-trust regulators, if you were to sign this deal and get to them to be reviewed would deal with some of thosee concerns uber, i'm told, not willing to give those concessions that grubhub is looking for on anti-trust in addition to, of course, making grubhub feel that during what would be a lengthy review that its business would be okay and that could also be in the form of a significant break free and the like, reverse break fee and the like but they're not making a lot of progress there uber says if we start giving our pricing to city councils and the like that want certain pricing caps our core business they will start to come after, as well they're kind of at -- we'll see. they're at odds there. as to the prospect of either one of these european companies will

be a true merger candidate, unclear, again, given some of the impediments there, including the fact that neither has a listing in the u.s >> all these companies are under assault. yes, there are some large restaurants that are using, chipotle uses them when you have restaurants and you have half the tables, you have to do something with the waiters. the reason i mentioned the bicycles is the waiters, your own places are starting to do the delivery you save a huge amount of money. these guys really take too much money. this is a common theme that is happening in many cities a grubhub or an uber eats because you have spare ppe talent that have to do something that's what i would argue. if i were matt maloney i would say, you know what, a whole new group of competitors and they're every restaurant i like matt very much and i know matt wants to hold out

this trend is so electric and i'm so early on this thing believe me, you can't get a bike it's impossible to get a scooter and that's restaurants buying things up in order to be able to deliver themselves and make a profit rather than giving these companies 30%. so, they should, they can combine but there's a whole new force that is saying, you know what, we don't need these because we have so many people and we don't know what to do with them. >> right that's interesting new theme. >> now, keep in mind the potential synergies between uber and grubhub quite significant. you can take a lot of cost out there, as we know. not so much these two european companies given they don't have their business is not really here so, that's also a different front. guys, if i can, quickly, just because let me come back quickly to tiffany which we've been following closely, as well you know, i think it's safe to say that bernard the richest man

in europe is focused on continuing to find grounds to extract price cut from tiffany you can see, it's still a fairly large spread that said, i continue to hear tiffany is not going to give them any grounds for doing that. you know, there will not be i'm hearing any sort of ability for lvmh to seek those sort of wedges in the like of breach of cov n covenants to pursue a price cut. we'll be watching it closely and watching closely tomorrow, as well, when tiffany reports earnings just the latest there p tough customer he'll stay focused >> oh, yeah, i think this is an exciting deal because if tiffany comes back, i mean, what an opportunity right now to do something.

again, david, i need to know about the simon properties deal. will you help me here? help me. >> they don't have the contract is air tight from everything i hear >> then how did simon go from 50 to 90? >> the only way -- i don't know. i don't know >> i don't know. >> now, it does, it is both cash and stock. so, at least you got that there. that's helping, as well. jim, you know, they're on the clock there now. they've gotten, i don't know what to tell you everybody who has gone over that contract says it's incredibly tight as much as david simon regrets or wishes. >> lvmh not tight, right >> no. it's a tight contract, as well there might be a little more wiggle room. it's pretty tight, also. >> great story >> but these are all being tested and that's the key >> great story >> and they -- carl? >> yeah. it says a lot about the moment we're in right now, david.

thanks for that boeing is up 11% and as we got as jim said, nasdaq all-time high let's get to bob pisani. >> the same thing over the last week and a half underperforming groups and energy stocks are up and bank stocks are up once again, mega caps which really led the rally, frankly, are underperforming. i don't want to kid anybody. if you look at what is going on, i tend to look at the market from where it was at the 52-week highs in february. you can see this is still a largely mega cap driven rally. if you look here apple is essentially at a new high let's not quival about a few points amazon 1% away microsoft 1% and, of course, you can see the effect this had on the other sector leaders technology consumer discretionary where you get the

bulk of the mega cap names consumer discretionary is at a new high and health care is also only about 1% off of the 52-week high i understand that we've seen unusual sectors that have been laggers do well recently but let's not kid ourselves. banks and energy rally, but, energy is still 30% off its 52-week high and banks are still 24% off. even with the big rally that we have given that has gotten so much attention in the last week and a half as we shift it into these groups and industrials are still 12% and the russell, which we talked last week had a terrific rally last week is still notably lagging the s&p 500. so, much attention is now focused on these underperforming sectors and a lot of debate back and forth over the weekend a lot of notes flying around over the weekend and mike wilson over at morgan stanley is now changing and overweighting industrials and materials and those cyclical names he is very big into them and utilities and

over at bank of america and merrill lynch was talking about value stocks over the weekend. those are mostly banks and energy stocks. so, they can differ in where they're going but basically looking at the underperforming sectors and seeing if there is anything left in them. what's next? jim had a great question where are the concernings? that's what we need. what does drive the stock market here earnings are they growing or not growing? right now they're not growing. the estimates are still going down how adoubout dividends certain sectors cutting their dividends. the market multiple. is it expanding or not here's the only thing that has actually been expanding. this thing is way over 20 right now and that's in historically overbought territory here. carl, i want to remind, everyone 45% of the s&p 500 and jim is right. what we need to have happen in the next month, some time in

july some of these people and some ceos who withdraw on guidance come forward and say, hey, i withdrew our guidance and now it's the fourth of july. now we have a better idea of what's going on. here's our commentary. here's our guidance. that's the next step jim's absolutely right we need to see some expansion in earnings expectations and earnings guidance. carl, back to you. >> all right, bob, let's hope we get it bob pisani s&p is basically 9% above where strategists on average expect the index to end 2020 we're back in a minute

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look at stocks like boeing this morning it's clear investors think that airline travel is about to break out. phil has more on that today. >> good morning. take a look at the numbers we just received from the tsa in terms of passenger levels this weekend. it's a little hard to tell there is the uptick at the end this is the first time we saw two days over 400,000. including yesterday. keep in mind it's down 83%

compared to the same day last year as you look at the airline index and we're comparing this to the s&p 500 over the last month, no comparison airline stocks up 79% in the last month bank of america out with a note today regarding alaska airlines. upgrading it to a buy. v of a said you have to favor the airlines with the lower debt levels they like alaska the early trade for the airlines between 4% and 7%. and finally, don't forget that this afternoon, picture closing bell, you don't want the exclusive interview with the ceo of jet blue. we'll talk about passenger levels this weekend and how much it's grown guys, back to you. >> phil, thanks. yeah boeing adding more than 10 0 points to the dow as we speak. a quick eak d bran"squawk on the street" continues in a moment. this is decision tech.

find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. what do i need from a partner right now? an insightful outlook that comes from experience navigating multiple bear markets. can i find a partner to help guide me through this uncertainty? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

eight s&p sectors are higher at the moment. none more than energy. the saudis boost export price. shale companies rntued on the spigot amid a resumption in demand we're wac back many a moment for the life behind every mask johnson & johnson scientists are working 24/7 to develop a covid-19 vaccine. the clock never stops and neither do we.

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as rewrap up this hour, a quick clarification when we were talking i mentioned a stock

component. sometimes i get a little confused there are deals out there. this is an all-cash deal 5250 is what simon agreed to pay. carl, overall, i am hearing a lot more at least about conversations starting to take place and things starting to at least bubble up. you would imagine that given the performance of the equity markets, instilling confidence in management teams overall. but another theme, jim, that comes up a lot is the election and what that will mean for changing face of anti-trust regulatory and whether or not if you are thinking about a deal you want to try to get something done if you think there is going to be a change in administration prior to inauguration. it will happen even if -- it will be stringent. there is a view that would be the case >> great call. great call all right. tonight i have thor. stocks up 8. it's screaming and then i have sorrento

it's another vaccine company please be careful. small cap. not bob. bob martin is a leader i love that company. thor is back it's airstream and others. david, we're going to cross the country to take a cruise ship to alaska okay >> i'm in. i'm ready. >> you guys have a busy calendar >> i'll go anywhere. get me out of here >> oh, boy all right. >> david, thanks we'll see you later. jim, we'll see you tonight good monday morning, everybody welcome to "squawk on the street." i'm carl quintanilla with sara eisen. 1% gain in the industrials the reopening trade gets another leg up after last week's torrid advance. >> yeah. that's where we'll begin this

morning with the market, and that 1 % move higher from the dow. s&p coming off the best day since mid may and the nasdaq at a record high. dow at the highest level since late february. bolstered by boeing. jonathan golub joins us as well as the chief investment officer at -- jack, are you surprised by the magnitude and the persistence of the gains here? >> i nearly fell out of my chair when i heard the jobs report 10 million jobs miss is the largest swing and miss i've ever heard in economic history. thankfully it was to the up side i do think that expectations certainly from investors, but also economists were very low. so similar to what we saw at the

bottom in 2009 when economists expected a million job loss in february of 2009 and we only got 850,000 850,000, that set the stage for the bottom that occurred around that time. >> i guess the question is how much further can we climb and how much has the market priced in a better view of reopening than a lot of the economists looking for a down jobs number and the hedge fund managers looking at stocks over valued? how much of that is already in >> i think a lot of it -- i'm sorry. >> oh, no, jack. >> to me >> yeah, i think a lot of it is priced in. i did a pretty thorough analysis of the market last week. we looked at three different valuation measures i think one thing your viewers should also disregard is anything related to forward

earnings so forward p erks, anything like that if you look at the equity markets related to the economy, you look at ebita, i wouldn't call it a dangerous evaluation certainly it can sustain itself as long as we get continual improvement in the economy >> jonathan, want to hear from you on this on where you think we are at this moment and on the point of how you make a fair valuation for the market right now. >> first, i think that -- there's two separate stories here one is all the sequential data, the jobs report versus the last jobs report or the miles driven or retail sales, comparing it to what happened last, they're

going to look off the charts great, and you're going to see improvement everywhere and i think that's going to give a near-term additional boost the reality is you have to ask a different question with over 20 million people less employed now than before, how long will it take to get back to those numbers? the v off the bottom is going to be easy. it's going to be exciting, but it's probably too soon to even address the issues about how long it will take. with respect to perhaps i have a different view than jack ultimately, markets are a discounted set of cash flows based on what you think is going to happen in the future. and even if we can't -- we don't have a perfect view of what those are, right now based on consensus estimates, the market is at a 2 2.5 or a little more than that multiple it basically means we're trading like we're in the internet bubble period in terms of stock

valuations and yet, rather than the enthusiasm then, we're seeing environment with all kinds of problems. it's very, very difficult to justify these numbers no matter how optimistic you are on earnings >> jonathan, to jump in on the multiple question, the principle is always you buy cyclical stocks at high multiples on multiples. is the overall market not governed by similar logic? at a time when you saw a unique one-time shock decline in forced earnings basically >> that's a great point. i did this math right before coming on. let's assume that you get the bounce and the earnings jump really aggressively. what's your multiple going to be because it's easy to say when your earnings are beaten up that stocks seem expensive, but that's not the right way to look at it. right now we think that even if

you assume that you get a huge bounce, the stock multiple is still over 20. and so even if you were to say fine, give me whatever numbers you want you want to do it on 21, 22 earnings fine you still get obscenely high stock prices we are -- we're, what, well more than 10% more than we were a year ago, and yet, economic conditions are not better than a year ago we're roughly in line with the start of the year, economic conditions are nowhere near as good as they were at the start of the year. if you use that kind of a parallel, it's very difficult to justify unless you simply say the fed is pouring money in, don't fight the fed, but beyond that, the fundamentals don't make the case. >> jack on the curve and rates -- >> can i address two points jonathan made. i tend to agree, but you're

right, jonathan, we have $7.5 trillion of additional liquidity. you know, about 4.5 trillion in a period of three weeks. the other is to your point on the discounted cash flow, i agree. it is all about discounted cash flow, but next year's cash flow in the stream of the next 30 years accounts for about depending on the growth rate, accounts for about maybe 5% to 10% of the overall value of present value. so if you think that we can get back to kind of a reasonable growth rate in 2021 or 2022, the fact that we have that diminishment end of 2020 is really more of a speed bump than it is a huge hurdle. so -- >> i would -- jack >> denominator to me is a little bit of an overrepresentation >> jack, there's a lot of reasons to be -- i think to be enthusiastic in the turn, but

this is more than a speed bump with the market basically flat year to date, t very difficult to simply say that liquidity alone justifies the market being flat, but we can debate it >> jack, on the ten-year, to what degree does it deserve to be the driver from here on out, and how many more basis points until the fed starts to push back >> boy, yeah i don't think the fed is going to get in the way at all they've been flapping their arms for a decade and not seeing inflation above their 2 % target so easily the fed is just going to sit on the sidelines and wait probably the best thing they can hope for is a little inflation to give them some working room i think delving into negative interest rates is an area, of course, that chairman powell's loathed to do. in order to be able to have some

room to offer some financial repression where we keep interest rates below the rate of inflation, we'd love to see that inflation rate rise a little bit. >> i want to bring in some of the health data and statistics which i feel have been a bigger market mover than sometimes the economic data than the valuation argument you're talking about. today new skilazealand announcey are co-vid free. europe is r europe's reopening is apparently looking smooth in our country we have hot spots, but i wonder how much of that is just dictating where the market goes right now until we do appear to be past this whole pandemic stage, and then perhaps the earnings and the economic data will come into further focus. >> sara, i think that's the most

important issue here i think the belief that the pandemic is behind us is probably not -- i mean, it's probably looked at as an optimistic view, but we are seeing -- if you look in new york city, the number of deaths per day, the number of new cases per day and people going to icus is down dramatically, and that's going to make it much more comfortable for people to get into the office on a train or something like that or a subway. and not be there for their health and that's a really big deal i think with the events over the last week, where people were gathering together and when people are opening up and eating at restaurants in many places and the like, if we don't see a resurgence, then i'm not sure

the market surnges ahead, but te idea of a major retracement like many of us forecast is off the table. if, however, we see that the number of cases starts to pick up as we reopen, then i think that the levels we have are going to -- there's no way they're going to hold. i think your point, i think this is the most important thing. drawing new zealand as a case study is probably not the right one, but we are seeing in the u.s., a number of cases and deaths coming down substantially. and that's extremely good news >> well, the protests will be the key. we'll see in the next few weeks what the data looks like >> absolutely. and i also think -- >> jonathan -- >> go ahead. >> go ahead. last word. >> no, i just think that as the weather is nicer, people are going out. people are -- once you go out to whether it's a protest or out to

a restaurant, i think we realize we don't want to be in our homes anymore. we're kind of fed up with being locked away, and so we're all desperate to go out and resume a normal life, and if that goes well without a resurgence, then i think the market is going to hold these kind of levels. >> amen on wanting to go out jonathan, jack, good to see you. >> thank you >> so we're holding 3200 this morning. when we come back, goldman sac's seniored a vie vor stay with us our retirement plan with voya gives us confidence. yeah, they help us with achievable steps along the way... ...so we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. oooh, well... i'm good at my condo.

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stocks continuing to climb as investors look to momentum of reopening businesses across the nation >> i just think t a fascinating time where if you get a vaccine, say, by january, february, you get one distinct outcome within the market if you don't get a vaccine for a year or two, you have another outcome within the market. then you've got all the stimulus plans if they deliver in july. you get one outcome. if they don't, liquidity falls off the cliff and you get another outcome. so as always, i'm staying flexible but i've been far too cautious i was up 2% the day of the

bottom, and i've made all of 3% in the 40% rally i missed a great opportunity here joining us now, jim stewart. if this is a period that's confounded stan druckenmiller and he sees the distinct drivers that could be good or bad news, how do you think a typical investor after a 45% rally in a few months should be navigating things here? >> i think you have to stay away from overthinking this at a time when we really don't know what's going to happen. this is like an unprecedented situation. i've been saying all along, stick to your program. stick to the strategy. and if you did as i said at the time, you did not do what druckenmiller did. you were buying on the buy down, sticking to your asset

allocation, and now it's time to stick to it on the way up, which i've been thinking lately is just as hard to tell when people are feeling euphoric as it is to buy when people are feeling despair. given the magnitude of the rally, i look at your portfolio, if you're 640 -- 60/40, rebalance. take money out of stocks and put it into fixed income which should be cash at this point because fixed income is doing so little that's my philosophy and so far it's been working very well in this period of uncertainty. >> taking with the market has given you when it moves this fast often pays off. you mentioned potentially selling when people are feeling euphoric it's a matter of debate right now as to whether what we're seeing is really kind of full fledged euphoria or people feeling more confident in pockets of excess. is there a way to make that call >> i agree i wouldn't necessarily call it

euphoria, but there's a lot of emotion out there. i was thinking today, just look at the last week you know, one week ago things were looking pretty grim, and then by friday i was -- you listen to the news, and you get no none deaths in new york city. shockingly good unemployment number the big stock market rally and i tell you, a lot of people i know suddenly their emotions were whip sawed that week. they went pr feeling despair to feeling very good, and that's been reflected in the stock markets. so i don't know. you don't have to call it euphoria look at the markets. it's pushing up toward a 50% rally. to me that's a signal you need to look at make sure your allocations are not out of line. there's a lot of good news priced from the market expectations for a vaccine great. i hope it happens.

continued good employment numbers. coming out of the lockdown now, there is room for negative surprises along the way here and i don't think you want to be overallocated when those happen. >> jim, speaking of surprises, goldman talks about in their words, the risk of a blue wave where democrats keep the house, take the senate, and take the white house. which in their view from a corporate tax standpoint and the risk of overturning the tax reform law would cut their earnings estimates next year by 11%. the election is less than 150 days does the market have to deal with that soon >> it's less than 150 days, but i wouldn't want to start making bets right now on how the election is going to turn out and if it does turn out that way, what's going to happen with things like the tax code that's two or three -- that's two or three bridges, i think.

it's a very volatile mood right now with the protests going on, the turmoil but who knows what it will be like in two months now. people will have plenty of time to reassess acrosser to the election >> i want to ask about -- >> go ahead. >> sorry don't mean to cut you off. i wanted to ask you about the -- >> even if the democrats do take over, i don't know that that means the tax bill is going to be overturned. that's for another day, i think. >> i want to ask you about the moment we're in in terms of society, and the ceos coming out and aligning themselves with black lives matter they're pledging support

they're promising change at their organizations. do you see this as a moment in time where we're going to actually see lasting change as a opposed to some of the other moments in history that we're been here? >> it would be nice to think there would be i mean, the lack of progress in the past gives me some pause and i have been paying attention for some time to the issues of minority representation and upper ranks in our business. i'm telling you the picture is not good over the last ten and 20 years if you look at almost every level of upper managemen america, the numbers particularly for african americans, has gone down the number has not been moving in the right direction it's very discouraging and i know even -- i looked at "the new york times" in fact we've been talking there about why don't we have more representation in the reporting

ranks? and i think the conversation is really healthy, but it's complicated and it's going to require not just hiring more people, but nurturing them, mentoring them i would love to see that commitment, and maybe now we'll get it it would be great to see some significant followup action to all of this positive energy. >> jim, it does also come at a time when even before all this kind of burst into everyone's attention, you know, esg investing and companies trying to signal they were broader-minded about things, not just shareholder value it maybe links up with that pattern. >> yeah. the trend there of the sentiment is moving in the right direction, and i do think the core is from chief executives lately more than i noted, way

more than i noticed in class their organizations when they get together i think they are talking about it seriously but like i said, i wanted to see them come forward. let's come forward with targets, numbers, metrics, and so we can actually measure progress as opposed to just listening to company words. i think words at this point are not enough they're going to have to come up with data, some progress on the ground here. >> yeah. well, jim, always good to catch up thank you very much. >> good to chat with you time now to hit our etf spotlight. it's defense up more than 25% from a month ago. the biggest catalyst is boeing surging by about 60% since the beginning of the month health by hopes of a -- helped by hopes in a strong recovery in

commercial air travel. we're going to take a quick commercial break stay with us here on "squawk on the street" as we look at the dow now surging 237 points a little less than 1%. need better sleep? try nature's bounty sleep3, a unique tri-layer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. only from nature's bounty. find a stock basedtech. on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.

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we thought you can 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. [ laughing ] after three months of lockdown, new york city is implementing phase one of the reopening. contessa brewer is on the streets of the city. good morning >> hi, carl. city point is a major shopping destination in brooklyn with a lot of stores you would recognize. the essential ones for instance here trader joe's

and the target right down the street have stayed open all through the coronavirus crisis, but now you can see the windows for all the shops have been boarded up to protect against vandalism in the recent civil unrest for the nonessential businesses, retail today is a big day. phase one of new york's reopening. for fashion and art boutique da spot, it can't happen soon enough they saw a 90% plunge in sales da spot is home to 25 independent brands by people of color. we're looking at looking at traffic, seeing if it's going to come back. what our new normal is going to look like, and so we're hopeful. we are used to having at least 100 people in the store per day.

this is a drastic change with it being closed the challenge is hoping people come back, feel comfortable to dock outside and shop -- come outside and shop >> the bad news is there's no instore browsing. there's only instore pickup and curb side delivery curb side is at a premium. you call the spot, make your order. you tell them when you're outside. and then they'll bring it down to you out here. hey, nonessential construction, also allowed to resume today for these guys across the state. it's the first day back on the job for them they're working on a residential project that will contain a school the city accounts for 5% of the nation's gdp getting things back up and running however small this baby step is important to the whole nation sara >> contessa brewer, thank you.

let's get a check on where we stand in today's trade we're about an hour into trading. mostly building on the strong gains of last week except for the nasdaq which is lower by .2% the s&p and the dow continue to zoom higher. even small gains brings the s&p's tally for the year almost to the flatline. down less than 1% for the year dow well above 27,000. we'll take a quick commercial dot go anywhere. we're back in two minutes. what do i need from a partner right now? an insightful outlook that comes from experience navigating multiple bear markets. can i find a partner to help guide me through this uncertainty? with capital group, i can. talk to your financial professional or consultant for investment risks and information. can i find an investment firm with a truly long-term view

that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

welcome back, everyone i'm sue herera here's your update a key trump economic adviser says more coronavirus aid is coming despite friday's strong employment report. on "squawk box" this morning

kevin has set says there is a nearly 100% chance a fourth stimulus package will be passed next month >> it will be obvious in july what needs to be done. i expect we'll be able to get that done and get it done quickly. >> oil giant bp will cut about 10,000 jobs about one out of every seven workers as the pandemic continues to depress oil demand the cuts are focussed on office space jobs here's a shot of washington's new black lives matter plaza from space you can see it right next to the white house and stretching two blocks you are up to date carl, back to you. i'll see you next hour >> thanks, sue the stunning rally continues with the dow positive. our next guest is looking at what businesses will look like as they reopen and how investors

should approach the post covid-19 era it's good to see you again >> glad to be here >> you wrote a great piece last week, sort of a 30,000 foot view of the era we're in. you say it's preservation where everybody is trying to stay together, consolidation and innovation are we moving from phase one to two. >> i think on average, yes everyone likes the phrase the new normal everyone else hates it it's going to be a long time before anything the normal in the environment. first, people were trying to hold things together then you saw some winners develop. mostly digital, and that became the trend of the month now a lot of people are going into the reopening in the consolidation phase we're

seeing the winners win because people can't afford to take risks on new players or people who failed during the shutdown whether you're redesigning your supply chain or thinking about your personal use of store, you'll look at the people able to supply you during the last couple months. they're going to be viewed as the safe choice. this is going to continue to push the consolidation market share gains we've seen in the stronger performers. that success eventually will lead to new competition. they'll set the standard and that will bring new people into the spaces >> interesting but does the level of -- does the amount of money raised in, say, corporate debt or the commitment of central banks to protect challenged companies, does that make that delineation more difficult are there going to be zombie companies that shouldn't be around for a while >> the tricky thing about the

transition is going to be distinguishing between zombie companies and zomb companies retooling. if the financial crisis there were probably 20% of the market that needed significant change inside their own corporate design and were able to do so successfully and so that's not a one-month, two-month or six-month process but there's a lot of companies that are going to be looking at how they were run. they're going to redesign it to match the people more successful we're going to take a lot of learning out of this process, particularly about supply lines. there were a lot of companies running 10,000 long supply lines that went through singular islands of supply. lots of single points of failure that have enormous troubles during this crisis nobody will do that again. everybody will make sure they have multiple suppliers. everybody will make sure there's flex in the supply chain that redesign is going to give

you a new structured supply chain. >> steve, i wonder to what degree it's been a reset of the type you see after recessions, just an accelerated way. i'm thinking mostly of wage pressures. if you thought it was late cycle die manics and companies -- dynamics and it was swinging from capital to labor, it's changed. how does that filter in? >> it's changed, but it's going to take a couple months to refine the microeconomics of that if you look at the unemployment we're looking at, it's predominantly low wage and services so that's not going to do a lot to reduce inflationary pressures and goods. the reduced inflationary pressure and goods really came out of just a massive drop in demand so as demand comes back, cyclical demand comes back, you'll see goods prices lead the way. it's completely different than

the last two cycles. and on the wage side, particularly service wages, that's probably going to be the slow moving segment this cycle because of the excess supply, and all the difficulties reintegrating the supply chains. as opposed to what we've been used to, services wage led inflation, it's probably a goods led inflation this time. >> we keep hearing from companies, steve, about how the last few months have accelerated trends that have been years in the making but it has been accelerated by years the shift to online banking and online grocery shopping to e-commerce in general. and yet, we're wondering how many jobs are going to come back how many structural jobs do you think are going to be lost as a result of this crisis, and in which kind of companies? >> well, so the -- two questions there. and let me hit them sequentially the first is sticky learning

we did a decade's worth of learning about work from home in the last two months. companies that were thinking about experiments of allowing morework for home either for diversity reasons, gender reasons or resiliency in the 5% to 10% range may have hit 90% and 95% work from home arrangements during this period. we've learned a lot about how jobs can get done, about how supply chains can be run and we can shop and work. that knowledge is not going to go away. corporations are going to spend the next three or four years integrating that knowledge into the way they operate the job implications of that are going to be really complicated work from home to going to allow you to decentralize the people you hire it's going to allow you to use

independent contractors for things you might not have thought about using them for that means the jobs are going to move around. probably the most comparable period of job reallocation was the 70s when oil forced the changes. and it took almost 15 years for the jobs to shift around the economy. so even on an accelerated schedule, you have to assume this is going to take 5 to 7 years before things settle down into where you're going to do what and that's going to create lots of issues. >> big implications for urban centers. druckenmiller was on our air this morning and talked about the binary nature of medical skroefr and how you have to stay flexible there's a possible you get nothing or a possibility of getting something incredible how are you folding that into your world view? >> that's one of the most

interesting aspects of this recovery that's different. binary is true, but i think it's also misleading. part of why the market looks so good is that if -- you have literally hundreds of drugs in development. so if any one of them fails, that tells you almost nothing about what the forward medical outcome is going to look like. if one of them succeeds, you're forced to deal with the positive news i never lived through a period where the news flow is more biassed to be positive right? all good news is good news all bad news just opens a space for some other good news to come in it's part of the reason this market feels as though it's a little bit high. it's because the bad news just opens up space for the next trial to be the next story any one drug or treatment failing doesn't tell us anything the market has to price a good

medical outcome. it doesn't know which one. is it treatment? is it vaccine? is it a combination? is it more social distancing but some combination of those things means over the next number of months it's a high likelihood we'll have a better environment to live and work in. and the market basically has to price that, even though as stan said, it's possible every one of those may trn out bad, that will take a long time to figure out if it's true >> yeah. fascinating. i'm sure a lot of viewers are nodding their heads sort of understanding how that fits with the market action we've seen steve, it's a great report it's called the great reset. if you get your hands on it, try to read it from last week. thank you for the time >> thank you >> later today on the closing bell, don't miss an exclusive interview with the ceo of jetblue. we'll find out what he's seeing

in demand and whether the green chutes job with the stock prices which have been soaring the last few sessions and continue today. we're back in a moment this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. makes it beautiful. state of the art technology makes it brilliant. the lexus nx experience the crossover in its most visionary form. experience amazing at your lexus dealer. find a stock basedtech. on your interests

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new york city entering phase one of the reopening today with new virus prevention technology in focus at the newest big development hudson yard. we have that story hi, diana. >> as we move into new phases of reopening we're seeing new technology to keep office workers safe hudson yards, one of the nation's largest and newest real estate complexes developed by related took us on on exclusive tour of their operation. and the ceo said office will be back >> the case of 8:00 to 8:00 zoom calls is not that productive, and i think innovation happens when people are together and so i think people ultimately come back to the office. >> and when they come back to hudson yards, they'll be greeted first by thermal temperature systems. if your temperature is over 100.4, you're retested with a hand scanner and if it's still

that high, you have to go home once you're cleared, you swipe your hand for touchless security through the turnstiles and that swipe then tells the elevator where you're going. you don't need to touch the buttons. elevators will be limited to four riders with positioned dots on the floor for distancing. hudson yards had state of the art air filter systems but they'll pump up the circulation, and they may see more demand from current tenants for space >> some tenants that have built dense spaces whether t trading floors or bench seating have decided ultimately they want to have more separation >> reporter: now, hudson yards is also asking the tenant companies to stagger their work worker end times they expect offices to start at about 25% capacity and rise from there. >> given that this is basically a brand new complex there, do they have advantages that other

longer standing office complexes won't have in terms of implementing the technologies? >> they absolutely do. their air control system is environmental buildings. their air system was top of the line now they're looking at different types to upgrade it. they don't have to retrofit the way older buildings do they were at an advantage here >> okay. maybe a slightly tougher job for some of the older buildings. diana, thank you very much >> for sure. still ahead, robert reffkin will be with us. onhetrt"onnuee cties in a moment. what do i need from a partner right now? an insightful outlook that comes from experience navigating multiple bear markets. can i find a partner to help guide me through this uncertainty? with capital group, i can.

talk to your financial professional or consultant for investment risks and information.

welcome back to "squawk on the street." stocks are mixed to start the

week with energy among the top performing sectors the group is holden onto gains saudi arabia said it would stop voluntary production cuts in july and pump as much as permitted under the agreement. none the less optimism over economic reopening and possible return for demand are pushing companies higher including marathon oil, squawk on the street continues in two minutes. 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. 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. after weeks of civil unrest,

many businesss are deciding the best path forward and the solutions to these two american crisis the next two guests are calling on employees that is not the only thing that you're doing i find it interesting that com pass is also making moves to hire more diverse exacters >> i think the civil unrest is a result of economic inequality. and we can't expect them to be just improving and we are their customers we're making a commitment that

every one of our advisors have to have black professionals. secondly, we're asking our customers to have an impact. specifically our customers that are real estate agents they direct $15 billion of spending to other small business owners forecasters, videographers, real estate attorneys, we're encouragi encouraging them to spend 50% of their spend on black professionals. that would be an impact. you managed to raise a lot of money. i think we're the only black

entrepreneur that the vision fund invested in, what did you find in that experience. when i look at the most successful black people i see two commonalities. they have access to greater education and two they have sponsors not just mentors, but sponsors people with their own political and social capital without any one of them i would not where i am right now that is why i founded a charter school in the broms for education in a nonprofit called america needs you. it is college support. >> your recommendations remind

me a lot of what goldman did just a few months ago. how much are they relying on it to get this outside of large cap companies. for the first time i saw a diversity of people across professions and skin tones are supporting the black community and i think this is a great time for employees and companies to ask their leadership teams to make a positive impact and i think that we're going to see more support for the black community than any other time in

my life. >> they splus one -- must have one more female member of the board to go public is that okay for that to be mandatory? >> absolutely. i'm really excited that they took a stand for women in this country but i would love to see them and other banks take a stang for black professionstand professionals. we said that is great, but there should be black professionals supported the same way we should ask them to be on board. only 8% of board members in the fortune 500 consistent of black professionals.

we brought on eileen and pamela, pamela was the first female black partner at mckenzie where i worked and now thee is the ceo of cnbc and now she is on the boards of other great companies. i would love to see one of them come out and make a stand about diversity on boards for color and gender >> while we have you, we want to what are you seeing out there? >> the market is more than back. i will tell you that they're outside of new york city we're seeing in contract listings at a much higher rate it is up 47% year to date.

in prices, in the vast majority of the market, they're up for the year this crisis has created movement peep ha people have never been so intima intimately aware do i have enough beds. do i have enough for a outdoor terra terrace, backyard, home office, and if the questions are they are moving on. >> thank you for inviting me >> sarah, thanks, well see you this afternoon tonight i think with the head of jet blue we're coming to you live from various locations. an important day as the reopening day is higher. sentiment the bulls argue is

still bullish. improving data, morgan, after that barn burner of a member relative to expectations for jobs >> that's right of course and we have a fed meeting in the middle of the week as well. and it is holding attention for investo investors. nasdaq with a record day high. one of the names in the green today, amazon, rbc capital, the price target, get this, joining us now is mark, great to have you on amazon is currently training around 2500. you have been bullish on this name for awhile. what plead to the price target increase, though >> we were at our eighth annual u.s. survey. the trends have gotten more p positive