it is 5:00 at cnbc here are your "top five at 5:00." all about the fed futures. they are higher. tech in command. sector showing no signs of slowing. facebook, apple, microsoft all at record highs. troubling trend as money pours into insolvency spoks. investors may be putting themselves at risk of losing it all. >> continuing to respond to issues of inequality in their

rank and file. and retail rebound lun -- lunacy you are watching "worldwide exchange" on june 10 here on cnbc >> good morning, good afternoon, good evening from wherever in the world you may be watching us here is how your money and global markets may be setting up the money and the rally could be setting up thedown coming off the first down day in six. the longest win streak since september. not about the dow. it is about technology the

nasdaq crossing 10,000 for the first time ever. that index on track for the 19th record close of the year most of those occurred before the pandemic or the lockdowns could be a 20th record high. you could call it a stay-at-home trade or a tina trade. there is no alternative to technology amazon, facebook, apple, microsoft. doing the same strategy they did prelockdown. awaiting fed chair's next move out with the latest policy decision at 2:00 p.m. eastern time today sara bloom raskin told us there is still a lot for powell to consider >> the economy is not an on/off

switch not one day you can send everybody home and the next day have them come back and resume without missing a beat there are going to belong term consequences to what we are going through now. >> so true the economy has not missed a beat in asia, japan up. the mainland china markets down. in europe, more of a trend with the major averages there all in the red in europe. we'll come back home busy morning when it comes to the coronavirus. rahel solomon back at hq with more leading infection disease expert dr. fauci out with a strong warning calling it, quote, his worst nightmare.

>> we have something that indeed turned out to be my worse nightmare. something that is highly transmissible and in the period, if you think about it. in a period of four months, it has devastated the world >> his comments come as positive cases in the deep south continue to surge weeks after reopening additional 18,000 people in the u.s. tested positive in the past 24 hours the largest number of new cases coming from texas. seeing the biggest record followed by california and florida. >> closer to home and the northeast, new jersey governor lifting the stay-at-home order as hospital admissions continue to trend downwards apple telling staff, its first phase of a planned return to the office will begin on june 15

best buy says on monday, it will allow, quote, limited number of people inside the store without an appointment just in time for me. i need to go there >> let's talk about a margarita. where are we all going to go when we can go out to eat again on monday? where are we headed. >> i -- i don't know new jersey is your neck of the woods. we'll have a team meet up. >> i'm all ears. thank you, rahel back to the markets, could be another record day for big tech despite this pandemic thing you may have heard about and the lockdowns. despite work from home and the fact that we still can't go out to eat in new jersey

big technology still leading with us now, head of research and technology it is almost like the pandemic and lockdowns never happened for big technology are you surprised? >> well big technology was really enabling the stay-at-home economy to function at all if we think about what it means to work from home. it is video conferencing, messaging and software and service, analyzing the data from outside the office and not even just work from home and entertaining yourself from home. all of that is going through cloud computing and video game companies. big tech really provided the infrastructure to make any of this work in the environment no surprise to us they have been

massive beneficiaries in this time period. where are your clients placing their money? >> this is not just a short term, big tech is coming in to save the day this is really an acceleration of a lot of trends we've seen we are seeing these around the world once they captured these new clients and customers, they are not going to leave the pross, it is very hard to fire that in going forward. also interesting the video game space. more of a consumer play. we've seen a lot of consumer

growth act vision, blizzard growing because people don't have a lot else to do no live sports, so they are playing games. >> by the way, those games are often appearing on network tv and streaming as well. we showed a graphic about spotify. we did a lot of online shopping. they may have seen when they hit transact, the website clicks over to a spotify or shopify domain as well how big is shopify business getting and the flow you are getting to shopify, he said? >> shopify's revenue is up over 50% over the last year which is enormous they provide the infrastructure behind the small retail businesses to sell on line

many people probably heard about the war between the big companies and small during the stay-at-home economy where the economies with the huge apparatuses are just beating the smaller companies that can't really transition on line. shopify is enabling them to transition on line faster. if you look at the entire small business world, that is shopify's business model the potential is enormous. we've seen very strong returns and strong revenue in growth it is just scratching the surface of this market >> you don't know shopify personally, do you we'll do the disclosure verbally >> we own it in our cloud computing etf, we do

>> thank you shopify, spotify, maybe they should merge appreciate that combine music and shopping i think that's musaq more of the crystal ball of what america may look like in a few weeks. going to beijing for the continued reopening. plus, the pledges pouring in companies to look to help make change in social inequality. one retailer is adapting to what will be a new normal for a while. dow futures down5. 3 we are back right after this 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. talk to your financial professional or consultant (vo) at whether on the track,that exhor the everyday drive.ty,

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welcome back as new york and other american cities begin to reopen or gauge an reopening process, beijing provides a glimpse of what life could look like in the states in two to three months as we step back in the world. eunice yoon with more about what is going on in beijing are you still getting your temperature taken every time you go out to eat? >> no. it feels really strange, brian i never thought that normal would feel so odd. the fact that i don't have to get my temperature checked anymore is one of the changes as china emerges from the pandemic.

up until this weekend, boxing with others at a basement gym in beijing was banned now that the capital has loosened restrictions, people are working out even without masks. >> i feel safe, the gym is professional and the vent lags is good. other cities try to open they could off a look at what things would look like in a few months rules are relaxing this is a temperature check. you can see it is empty. more and more complexes and office centers are opening up. restaurants are no longer asking customers to sit six fooel feet apart. losingen restrictions to places

like the gym our workers haven't been able to work now we pay them their full salaries another welcome step >> there seems to be a lot of talk in the u.s. that life might not get back to normal based on my experience, people want very much to get back to their regular lives. you always ask me what i'm doing. last weekend, i went to a lively restaurant district and was turned down from a restaurant because i had to wait for two hours. we are seeing more crowds. >> and like a month ago, it was like you and a couple of friends and nobody unless within 20 feet and masks and fear it is a great crystal ball there is so many worry here. it is amazing how fast human

beings rebound, is it not? >> yeah. it is true there is still a bit of weariness on the part of the crowds when we were standing in line, i went to a different restaurant standing in line people start to naturally social distance a bit you are about less than a meter from each other. still, there is a level of comfort. we haven't heard about as many cases here people are feeling comfortable and want to get back to their lives. >> i had no idea what a meter was. we sat on the back deck. a buddy came over and i went to shake his hands and he went like this i have the purell there. great to hear things moving along. keep us informed on your social movements. >> okay. i'll try

>> from the brink of failure to bringing back popcorn. why investors should not count out amc entertainment just yet >> announcer: today's big number 50%. that's how much the nasdaq composite has jumped from the march intraday lows crossing 10,000 yesterday for the first time ever. derek, seems like your team is operating just fine remotely. yeah, everything is running smoothly with the now platform. (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek. keep being you.

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movies, used cars and dog food big stocks this morning. amc posts $2.2 loss. the company last week said it may not survive. now fully expects to be open by july what a turn? in time for the release of the latest film "tenant" and disney's film "mulan." >> shares of vroom are higher. an online used car seller. may boom as people look to socially distance in their car

rather than take mass transit. and three is chewly, the online pet store. customers sheltering at home stockpiled items for their pets. expecting numbers to come in above forecast stock down a little right now but so far this year, it has vroomed. other top headlines. for that, phillip mena is in new york with more good morning >> good morning. one day after speaking at his brother's funeral in houston, he will give testimony at a hearing at police brutality. former officer derek chauvin was charged with murder.

the other three officers on the scene were charged with aiding and abetting murder. the scene sparked protest. in georgia, braving long lines to cast their ballots. poll workers had trouble with new polling machines specifically in areas with higher black populations georgia's secretary of state is promising an investigation into those issues nascar's only current black driver will race in a black lives matter car decals of the sponsors taking a backseat to the movement as wallace calls for banning confederate flags at race ways saying no one who attends those races should feel uncomfortable.

>> thank you for that, buddy still on deck, we'll call it retail rebound lunacy. joining us to discuss what the future of retail is and why some is of these stocks have been soaring. first from main street to wall street, ceos are taking on the crisis in america pledging millions to fight social injustice and equality for all top contributors, bank of america, walmart and cnbc parent company comcast. we are back right after this

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another big day for big tech will the faang stocks finally falter all of this as the nasdaq booms past 10,000. retail investors betting big on bankrupt stocks? talk about the risks and why they could lose it all plus how one retail ceo is coping with the new normal running apparent giant jack rabbit on this wednesday, june 10 this is "worldwide exchange" here on cnbc welcome back and good morning. it is 5:26 on this wednesday here is how your money and

investments look as we are about half way through this 5:00 hour and half way through the week. dow futures are down a bit down around 60 points. it is so early, things could turn coming off the yesterday six days was the longest win streak you saw nasdaq futures higher. technology still in demand just like before the pandemic with the nasdaq crossing 10,000 for the first time before crossing before that level. the index on track for the 19th record close of the year we'll see it happens today and call it a stay-at-home trade, a leave your home trade or tina trade when there is no alternative to tech. amazon, microsoft, facebook, apple back in record territory all higher again on this wednesday. all of this as all of us await

fed chair jay powell's latest move he's out with the latest decision today at 2:00 p.m. whether or not the fed keeps its foot on that accelerator the bond market has been forgotten. bonds have been dump em mass you may not care about bonds but that dumping of treasuries means that cash continues to move in equities the market has given up on the idea of inflation. many big cap stocks are seen as almost bond proxies because they have stable cash flows and pay a dividend bond market out, stocks are in let's talk about more under the radar market moves, if you will there have been some, well, questions about some certain stocks lately.

like macy's. look at this chart stock rising after the department store announced it raised $4.5 million to shore up finance. but says it does not expect sales to return to normal until possibly 2021, 2022. the ceo on yesterday to talk about the future of retail shopping looks like. >> we do think the customer will be more digital. omni remains an important part the penetration of digital is going to rise. >> let's talk this morning about the retail sector and what stocks may be in fashion with president of sw retail advisors and the invite-only executive committee of female only executives shaping retail.

i'm not picking on macy's but they are the biggest so we'll use them as an example stock up 65% despite the fact sales have collapsed, they are saying they may not get back to, quote, normal for another year and a half and they are adding debt to an already heavy debt balance sheet. can you please explain that to us >> that is what is going on across the board for struggling retailers. i would say don't be like a vampire fish here and comb the bottom you said it, macy's is not expecting a real turn around until 2021, 2022 they talk about the fact that they are going to lose a little less than a billion in quarter across the board, retailers are talking about a return to

traffic. arguing, do you want to own some of the department store space that is shrinking or do you want to own a name that is already returning back to normal out of the box and is already strong? >> let me ask you this will macy's survive as an equity is. >> i think macy's will survive for the next couple of years i think that they need to do a few more things -- as i said, they need to shrink. they are talking about shrinking their store base by 20%. i'm thinking 50% the traffic continues to exit from the department store space. macy's is not alone. particularly in cosmetics which is a traffic driver. now when a customer goes in to a macy's, they can't even touch cosmetics to try them on

so much out of their control here >> talking jobs numbers and economic data. it will be almost unusable here is why. there might be a boom of people that want to get out of the house. we'll probably get a few-month pop as we go back out to harrods where you are or macy's. what do you expect longer term >> everybody is kind of running out of their houses saying, hey, freedom. most stores are opening up at 50 to 60%, some toward 80% right now. if you think about a year from now, let's assume there is no vaccine and we can't move freely we are not going to be allowed to have the level of traffic in stores that there used to be getting back to the amount we are used to is 75 to 80% of a

strong retailer. that possesses a structural problem. we hear so much about the landlord retailer battle over rent that just needs to change. rents have to come down if retailers can't physically have enough in their stores we don't return to normal until there is a solution to the health risks that are being in a closed dome of germs, the mall >> an important topic. retail we'll talk a lot coming up the world of retail will be very, very weird the next weeks and months take care. also big this week perhaps a major red flag we'll wave it on the so-called

insolvancy stocks. all big on robin hood and all bankrupt p shares are soaring and stock has been halted more than 20 times over two days of trading joining us to discuss what the what is going on tim ross is president at modern ir where they track this movement i know it is super early there in colorado where you are. this is an important topic we appreciate you coming on. what do you make of some of these moves at chesapeake and retail stocks. what exactly is going on in the market internals right now >> hey, brian. good to see you. even early it is a reflection on market structure. how the markets work today

so there are around $47 million retail accounts if you add up the big five and robin hood is part of that now you have schwab, e trade, fidelity and robin hood. there aren't sports to watch, so day trading has become the new sport. all of these firms sell their order flow to high-speed traders. this is a key reason for how some of these stocks have behaved that you would think have very little to back them to support the equity valuations you can see today. i can explain how that works >> that's an incredibly important point. the order flow you and i have been talking about this since october last year when you were on this show

as well. on robin hood, they are not putting the orders through the new york stock exchange, they are putting it through the citedel. do you believe the high frequency traders are getting ahead of it and getting tipped off and is just a self-fulfilling cycle? >> well yes. it is the natural of the market. there are elements about it that we can look at it and i'll describe how this works and how it triggers the volatility take chesapeake. before the halt yesterday, it was trading at 70. going back to late march, it was trading near eight the order flow interested in chk that will come through these retail brokerages will be instantly sold to a

high-frequency trading firm. those firms will know what is in the pipeline because they are buying it instan containiously if there is a vast back log, the order flow will get splattered all over the market at rapidly rising prices. that's how it works. >> is that illegal >> no. payment for order flow as you know, topic of great controversy but there is nothing illegal about it in effect, what they are doing is rather than executing themselves is they'll sell it to firms and make a half penny. that's all it is if you are a retail trader, you see this all the time that trade is instituted at 3 and 4 decimal points making that difference between a

p penny and a tenth or a 100th of a hennpenny. marketable trades and nonmarketable. marketable want to be in the market of trade. stocks can soar. it's the result of this relationship between high frequency traders that rapidly move prices. they don't care what the company does >> we got to wrap it up. is it going to end badly for a lot of these by the way, we are glad they are back that's great and people made a lot of money how do you thinks it all going to play out? >> it is dangerous take hearts. their dead trades for 40 cents

on the dollar. that means debt holders believe they are not going to be made whole. yet they are trading at more than its debt. if you are the last party to hold the equity, you are 0 going to get burned. that's the risk. >> a lot of people have made a lot of money calling into attention again some important market issues we'll let you get back to bed there in colorado. thank you very much. coming up, facebook fighting back against a report that advertisers may be abandoning the platform more with it after this. dow futures are down 33. a non-drowsy antihistamine plus a powerful decongestant. so you can always say "yes" to putting your true colors on display. say "yes" to allegra-d.

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welcome back ever since mark zuckerberg depended the hands off policy in the face of president trump, some companies are rethinking advertising on facebook. rahel has that story >> from small digital advertisers to nike, some companies are holding back millions in advertising on facebook as they look to adjust their messaging around the black lives matter movement and distance themselves for what they call a platform for hate monday --

mongering. >> facebook saying we saw a small amount >> and from crossfit, ceo is stepping down after controversial comments on the death of george floyd. the latest leaked audio where he asked why he should mourn the death of george floyd other than, quote, it is the white thing to do. >> gm ceo mary barra is setting near, medium and long-term goals for diversity and inclusion. the latest in companies taking a stand. >> let's hope that they continue even after the attention right now. >> hear, hear.

new york city is going in day three of phase one reopening. one chain with its ear to the ground is running apparel company jack rabbit. four locations in new york city, more locations worldwide here with the ceo. tough times. i know we are seeing a little optimism out there. shoes. you need to touch them and put them on your feet often to buy them how does the world of selling footwear and running look in the, quote, new normal >> good morning, brian thank you for having me on we have began to open up across the country. we currently have 114 of our 131 stores open. the demand has been stronger

than we expected we've taken all the precautions. so far, so good. people our customers in health and fitness are very popular right now i think we are in a very good space. >> i don't know if you heard the interview earlier. i asked, the data is basically sloppy and ugly over the past few months is there any way to gauge how things will look six, nine

months out how do you foresee business six months out >> we see it continually growing. i think as capacity increases, that's our challenge today is how many people can come in the store. i think in our particular channel of distribution with running, fitness i think we'll continue to see growth in this category. so we are cautiously optimistic. we are measuring every day sales have been increasing we are a strong omni channel, retailer as well retail has had strong penetration throughout the whole covid period

we are cautiously optimistic today, six months from now and a year from now. >> are you optimistic enough, bill, to commit capital to opening new locations. you are planning 6, 9, 12, 36, 24 months out. are you willing to commit to continue to command or are you sitting on your capital to say, we'll wait to see how things go. but if there is opportunity in particular areas of the country where we feel strongly, then we would pursue it. but i think not at this time we'll continue to watch our trend. make sure we are able to operate at an efficiency level to bring

our people back. we'll wait and see how things go >> short time left, it has been a debate about extended unemployment benefits, stimulus. whatever side you are on you know it. are you getting your employees back to work or are there people still choosing to stay home when they can is. >> we've had about 75% of people we've asked to come back come back and about 25% haven't i must say, brian, that the 25% where we need people, there are many applications for those positions. we want to bring people back we've done a good job so far to bring as many people back as

soon as possible >> it sounds like there are people maybe ready to come back. we have a segment on this all day long on cnbc bill, best to you and your team. >> thank you on deck, it really is today all about the federal reserve and will the central bank keep its foot on the stimulus gas pedal and maybe driving stocks higher now that we are back out not just sitting in front of the tv growing beards and eating chips, you can watch us live and on the go look at that time square slowly coming back to live. two weeks ago would have been zero cars at this time now you got a couple of people walking, couple of cars. bright lights of broadway slowly coming back. we are back right after this jimmy's gotten used to his whole room smelling like sweaty odors.

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welcome back let's get a check on some of the stocks you may see later today gamestop reported wider first quarter loss most stores have closed like every other store in america some good news online sales rose more than five fold gamestop market cap below $500 million. five below sales lost 45%. also you may have heard stores were closed during the lockdown. about 90% of locations have reopened but not issuing guidance for the second quarter or full year some retailers were closed during the lockdown. mgm resorts plans to open more las vegas casinos.

excaliber followed by the luxor and four seasons they brought back bellagio and new york mgm grand operating at 50% capacity >> futures are down in a market that has been on fire. >> i just ran the numbers. i'll tell you this the s&p 500262 stocks are up more than 25% since the beginning of april. quarter to date, nine have more than doubled has this market rebound, rally, whatever you want to call it, even knocked the socks off the most optimistic investor out there or was this expected >> we have to say that the

recovery we have seen thus far or the bounce. more than a bounce is very much typical of what you get when you've got a grossly oversold market on negative projections on the financial crack that occurs reminds us a lot of 2009 everything nearly shut down in the entire u.s. economy because of the pandemic. this is unprecedented. the overused word but the applicable word. we do think the market has responded because of good rescue efforts by the market and by the fed which is dedicated to great transparency, communication and a process of looking to get us back to work and get the economy

rolling again through a highly difficult time >> you may have heard, some retailers have been closed the market is acting like the pandemic and the lockdowns were in the rearview mirror in some states, the pace of acceleration is growing. the all-clear has not been sounded. does the market believe that health data, which is all that really matters right now anyway, is going to look a lot better in the next few months? >> i think what the market is looking at, it is reading the tape for one thing in terms of the news tape and what it distinctly sees is great progress being made in terms of developing a vaccine, getting it tested commitment by, i believe over 100 companies in the world to

find omething, a vaccine and drugs of greater efficacy for those suffering for it on the other side, we have interest rates that are below historic levels. with that, the place to be we would think is equities. yesterday, we saw value eased up and we saw tech regain the lead there. this is a world where technology is driving we think that tech is essentially on parallel to where the automobile was when it began to replace the horse it is changing everything we do for business, health care. >> maybe the lockdown has accelerated a lot of that for the way we work and shop

certainly in the near term the basic question, are stocks going to be higher for now >> we'd say higher from where we are right now. we don't thinks it in a straight line always look for an opportunity or catalyst which could justify profit making without fomo this looks like a particularly good time to be diversified within equities. >> saying stocks will be higher in a year on average folks, that does it for us goes by like that. it is weesy.dnda we are getting there see you tomorrow squawk and the gang coming up next with capital group, i can. talk to your financial professional or consultant for investment risks and information.

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good morning, faang stocks pushing the nasdaq the dow and s&p taking a pause futures have been volatile in the last hour. investors are waiting to hear whether fed chair jay powell will keep his foot on the economic accelerator more states lifting pandemic lockdown and more plans to reopen casinos, theaters and nascar with some fans this time all still ahead on "squawk box." good morning welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. the dow ended th