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 the six-day

winning streak falling by 300 points yesterday take a look at what's happening. yesterday's session, the dow was down s&p dipped back in for the year inching its way in the day before the nasdaq did power to a new record close and briefly broke above 10,000 for the first time. lifted by amazon, apple, facebook and microsoft which all closed at record highs adding about $5 trillion. about the amount we'll spend in federal spending this year also take a look at what's been happening with u.s. equity this hour both the dow and s&p are under a little pressure. dow indicated down by about 60 points s&p down by 3. the nasdaq, even after all these gains is indicated up by about 17 points this morning taking a look at what's happening in the treasury market the 10-year seems to be yielding

0.797% crude oil prices are in the red. crude oil prices, talking about the recovery they've made. talking about wti. down about 2.3%. what an improvement or a gain in crude oil prices now above $38 >> thank you it is fed day today. investors will be watching closely for hints about the fed's view on the economy and plans to the stimulus which it declined to do at the height of the season in march. we'll be parsing every last little word and comma.

gives us something to look forward to, i guess. an update now on reopening america. more states moving forward this week new jersey's governor lifting the state's stay-at-home order yesterday. >> i saw >> allowing outdoor gatherings of up to 100 people. not sure i'm ready for that quite yet. not sure i know 100 people not that many people i like at my house >> delaware entered phase two allowing personal care services such as tattoo shops and massage parlors to reopen at 30% capacity that's good. small businesses, right?

kansas is in phase three allowing gatherings of up to 45 people massachusetts is in phase two allowing outdoor dining and retail opened with capacity limits michigan has fully reopened bars, restaurants. swimming pools and day camps best buy said yesterday, it will allow limited number of people inside most of its stores beginning on monday without the need for an appointment. restricting occupancy to 25% about 60 people per store depending on the size. bringing back 9,000 previously furloughed workers this is all happening with the back drop of what we read about with 10, 11, 12 states he showing increases and pretty

crowded hospitals and emergency rooms. i don't know how to gauge with all the new testing about whether it is a big spike or whether a reopening. there has been a lot of demonstrations there has been memorial day. things you can point to plus the increase in testing. i still don't know if this is really scarey going along sort of what has been planned >> looks better there than we have seen in the states. trying to figure out if the higher numbers because of testing or because of a real increase dr. gottlieb has pointed to us, you need to look at hospitalizations it is confusing.

you know there is also this political overlay of governors, presidents, mayors wanting the economy to come back too you wonder what you are going to be hearing if it has those overtones. people are wondering what underlying risk there may be of people speaking up loudly at this time. >> w.h.o. echoing yesterday saying, maybe not. we don't really know asymptomatic cases >> i don't know if you saw the other side of the political or scientific aisle says they were basically forced to do that because certain health people and the media forced the w.h.o. to come back out and say that. it is all so confusing it is hard to figure out who p is telling the truth

>> forced them to say it because they didn't have the underlying data to back it up it is really difficult to come out and say, hey, here is what we absolutely know if we don't have the underlying data to know that they are saying, just focus on those with actual symptoms then walking it back is them not saying never mind and an admission of the scientific data not being as strong or supportive we live in this world where we don't know >> there is a whole group of people out there, becky. this is the problem. we are trying to figure out who is the expert? who is the expert you are going to believe there are people suggesting that the w.h.o. is flip flopping on this not because of the scientific data but because they are under pressure this is happening across the

country. it is very, very difficult for viewers and the public to even know who to believe anymore. that's the hard part about all of this. >> that's the question we don't know. pga commissioner will be on. the tournament starts tomorrow hogans ali big deal tiger won't be there but all the top players will be there. they are going to test 300 or 400 people all the players, all the caddies, all the staff there will be three mobil stations there pcr test, you get a pretty accurate test. no fans yet. >> did you see what they are doing for flights. offering charter flights depending on where you sit on the rankings >> those guys have wheels up on

net jets or something. >> are those the pcr tests >> i read it was a pcr test. that's good. don't you think? >> pcr is better that quick abbott test is not. >> pcr test, take it and it is two to four hours, you get an idea pga is going to do a lot of things in memory of george floyd and everything we saw yesterday inthe commemoration. i thi . mgm saying it had a strong

reopening in las vegas all opening at the end of last week now the company says it will reopen excalibur and adding the luxor including the shops at mand lay bay they will reopen aria and mandalay bay >> amc expects to reopen in july most have been closed since midmarch all of the screens will be open in time for christopher nolan's "tenant" and disney's "mulan. col clorox is advising how best for

theaters all of these companies coming out with deals whether it be to get masks or tests or clorox probably part of the reason why some things are still hard to get. >> have you been able to get napkins? all my shirts have smudge on all of them. >> ruffian >> on amazon, could you order the industrial hand towels they have in the bathroom at the nasdaq you can get those in a big bulk case we just use those. >> it is weird what was in short supply very strange some other things i haven't been able to get. usually it has to do with

cleaning, sterlizing >> lysol and clorox will be in lard supply. this month, nascar will allow fans to attend the dixie vodka 400. you may ask what is that based down in charlotte in south carolina and it is gluten free who knew you think of the other ones. you got to by a gray goose guy, sorkin what do really cool people tit o's. i'm not a vodka drinker. >> pellegrino water.

>> also the geico 500 june 14th in florida june 21st in alabama, the racing organization will chorequire sol distancing guidelines. so the stands will look sparse >> or not. >> circa 1919 baseball games with everyone in the stands. some what similar to that. so gluten free vodka did you know normal vodka had gluten i didn't know. >> i didn't know either. >> coming up put that on your calendar. big swings in the futures this morning we'll talk strategies. up next, cases of

hospitalizations rising. we'll check in with dr. scott gottlieb after the break check out the market caps of nikola the little electric truck startup. surging on the potential on electric transportation. eclipsing ford's value of $28.8 and fiat chrysler's $25 billion. we are back after this oh, we love our new home. neighborhood's great. amazing school district. the hoa has been very involved. these shrubs aren't board approved. you need to break down your cardboard. thank you. violation. violation. i see you've met cynthia. at least geico makes bundling our home and car insurance easy. and it does help us save a bunch of money.

two inches over regulation. thanks, cynthia. for bundling made easy, go to geico.com

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global cases have topped 7.2 million with nearly 2 million in the united states texas, one of the first states to loosen restrictions saw the second straight day of record hospitalizations cases rising in parts of california officials there placed nine counties on a watch list a warning that more than 18 million people may need to scale back reopening efforts as a result of what they've seen. >> a warning the pandemic isn't opiate speaking to the bio technology

and the way pharmaceutical industry is meeting the challenge. >> there are a lot of companies involved for die no, ticks, they are pew ticks. typical anti-virals, anti-inflammatories, co-aing u lags i'm heartened by the fact that the industry has really stepped to the play. very much different than what we su with sars because the industry is not stupid they've figured it out >> an update on what we told you about yesterday, the w.h.o. walking back some earlier comments about asymptomatic spread saying much is really unknown. joining us now, dr. scott

gottlieb, former fda commissioner, cnbc contributor, serves on the board of illumina and pfizer talking about the comments from the w.h.o., they seem to have been walked back there are people suggesting that this was done under some kind of pressure from the media or health care. how are we supposed to think about this especially because the w.h.o. has flip flopped on issues >> i don't think they walked it back i think they made a premature statement about the asymptomatic spread china went back and retested all the citizens of wuhan, they found cases of asymptomatic and not a second spread. other studies have looked at

contact tracing and studies that look at the viral tighters in people that are asymptomatic and presim toe magnetic spread a single data point on testing in china to show it isn't as robust as we previously thought. that's what they seem to be talking about, probably prematurely. i don't think they so much walked it back as they clarified it >> we are seeing a growth of spread in texas specifically where it seems to be moving higher because the public doesn't know how much spread is, quote/unquote acceptable what is expected and not expected, how are you thinking about that right now when you look at texas and you start to

think what >> look, i think politically, we are going to tolerate a lot more spread going forward than the first go around. the health care system will be more resilient we've been able to stockpile resources. we should be able to reduce fatality it will be hard for places to go backwards. i think you'll see much more spread tolerated before we take mitigation steps which will be more targeted. texas right now has an outbreak. they are reporting about 15,000 cases. they can't claim they are testing more so turning over more cases the positivity is going up indicating an outbreak is under way. they will have to figure out how to quell that. one thing if they had good

contact traiting, which they don't. find out where things are occurring and take mitigation steps in those places. in wuhan, they trace it had to certain places and targeted those. texas will now have to target intervention they are now in phase three. they started may 1 basically reopening everything a lot of things have been open by at least 25% levels since may 1 and 50% since may 18 the state has been open a while. they'll have to figure out the spread and take mitigation threats in a surgical way where the spread is occurring. >> doctor, to build an andrew's question, it's really confusing even for people following the news and watching what has been happening. in new jersey, they lifted the stay-at-home order

people have already been going out moving about more freely before that. they now say you can have gatherings of up to 100 people with masks it was confusing before but getting these mixed signals says it is okay and some say it is not. advising to people to listen you get invited to, say, a bridal shower. do you go? >> i would listen to local advise there is a patch work of approach some states with more spread are opening up more. some states being more aggressive the tri-state is aggressive in terms of reproduction rates. i would limit socialing and wear

masks. limit trips out of the house and shopping trips particularly in settings where you know is more conducive to spread. certainly in the tri-state area that we know are hot spots areas like california and texas. around houston right now, they could lose sight of this quickly. talking about the seasonal effect we might not get more effect in july and august. this might be it we might be stuck with this level of spread and we have to figure out how to keep that from going any higher >> doctor, just to follow up on that final question, when you think about what is taking place in texas you said we won't go back. what should we think is acceptable

you said we had 2,000 hospitalizations in the state of texas right now. i hate to say this but it appears based on the statistics, it would appear that 2,000 hospit hospitalizations would result in 200 deaths the way they seem to go the question is if that number gets to 5,000 or 10,000 in terms of hospitalizations, there for, the risk of death becomes higher i know you are saying states will continue to stay home politically and within the health care community, at what point do you think there comes a real fight over this >> i think they are going to base it on hospital utilization and resources. the idea that we could manage towards a certain level of disease and keep it there. >> we are not going to be able

to fine tune this. not having to take those tough mitigation steps and get above those levels >> this is a very precarious situation where we seem to be following the level of disease looking at hospital resource utilization. i think you will start seeing push back from providers they aren't going to want to provide medicine in the covid-19 taking forward the decision to reduce the spread and tough mitigation steps what we really need are states with good contact tracing. it isn't just to keep numbers down but to fine tune those steps to know where the spread is occurring if texas finds out that the spread is happening in bars. they can bring them back down

and shut them back down and have a surgical intervention. the contact tracing will tell them that. >> is there any state right now you think is doing contact tracing well, should be a model? >> massachusetts i've worked with the governor of massachusetts, new york, california, maryland, those are states that have made investments. i don't know all the states. those states i do know and they are making a lot of investments in that. >> okay. dr. scott gottlieb, we look forward to talking to you again tomorrow becky, over to you when we come back, many in america are struggling to see what the states will look like we'll take you to china to see how some there are returned to some form of normality take a look at the biggest

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as states begin to reopen, be inmbeijing may offer some insight. eunice, you led us through the beginnings of this we saw it there long before it hit our shores wondering what life is like for you now? >> it has gotten better. it feels odd, i no longer have to get my temperature checked everywhere that's one of the latest changes as china emerges from this pandemic up until this weekend, boxing with others in a basement gym in beijing was banned now the chinese capital has loosened restrictions, people like this are working out even

without masks. >> translator: i feel safe, the gym is professional and vent lain is good. >> beijing is becoming less strict about masks most people still wear them. rules are relaxing this is a temperature check. it is empty. more and more places are opening up restaurants no longer require customers sit three feet apart or register i.d. the looser approach is bringing more to businesses like the basement gym and their workers >> translator: our staff hasn't been able to work for the last six months and was paid less than usual now we pay them their full salaries another welcome step towards

normal life. >> another way things have normalized all the schools here have reopened schools screen temperatures and make sure desks are socially distanced. also, domestic tour groups are now allowed to restart so people can travel domestically, just not in group >> that is so good to hear i don't care if i ever go back to the office but i would love the kids to be able to go back to school. they miss it i could use a break. please please >> a lot of parents here have said the same thing. >> the way they are doing it, they have temperature check at the beginning and various channels to keep kids farther apart. it is hard to keep kids from

hugging eachother. >> that's one of my big fears. >> desks are farther apart with p.e., they have more intervention from teachers but also made a couple of changes where classrooms everybody stays in the same class. before, people would switch classrooms now all the teaching is done by one teacher. they are making changes in order to adapt >> was there any debate in china about teachers in the united states right now among teacher's unions now is which teachers go back do certain teachers not go back and do they get paid was that an issue there? >> no. it hasn't really been an issue

as many say in the united states the system is really different here the pay of teachers hasn't really been discussed. talking about if you are not at work, the fear is that you won't get paid as much that's the discussion people are having here but not so specific to teachers. >> up eunice, it is a ray of ho for us you look great thank you. futures now are not down triple digits. they are down 86 or so s&p and nasdaq are both negative they have been a little above the flat line. we will talk market strategy ahead of the break, we'll look

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the nasdaq briefly topped 10,000 yesterday as continuing to move higher dow futures down by about 80 s&p down by about 4.

joining us now to talk about investing in this market, managing director at douglas lane and partners and chief investment strategist at capital wealth and planning. it has been phenomenal to watch where this market has gone over the last week and a half what do you think and what are you telling people what would you be doing with your own money? >> i think you are right the market has had a v-shaped recovery we've been consistent to say stay invested. within the market, there is pockets of opportunity i'm not getting too aggressive doing the same thing with myself looking for some wait and see going forward. if you are too overallocated to technology stock like the faang. this is a good time to stay

invested there are pockets of maturity and pockets with he still like in there >> we'll come back to you on some of those opportunities in a moment jeff, your thoughts. i know you had a particularly positive outlook in terms of where we'd be headed how do you feel now? >> we had a pretty good call we had a buy signal on march 24, the day after the market bottomed we think you are in a secondary bull market. it is not usual to try to pull stocks down here i don't think it gets very far or deep. i think we'll make new highs before the snow flies. >> joe >> i want to grill down on what

you are saying you did call it. you said we'd be at 3,200 at least. year end, you went as high as 3,400 or 3,450 are you there? even 3,400, there is not that much left, jeff. you think above 3,400 is coming or are we going to consolidate around this? >> if you believe my earnings estimate of the s&p of $170. i can make a very strong case even though the pe ratio is above historic norms in this rate, we ought to be above the pe model that would give above the 3,400 to 3,600.

the retail investor is not only conscious. they are scared to death before it is over, that money will find its way into the equity markets >> let's talk about some of the opportunities you are seeing if you are telling people some of the faang stocks risen so much, they should pull back. where should they put their money to work? >> you've got jp morgan and bank of america you look across different sectors. companies like cvs trading at deep discount and industrials like honeywell great balance sheet, good dividend ba being to technology not just with the faang but 5g, qualcomm and american tower there are opportunities there.

investors have to be very careful there. the market has been driven by these faang stocks also in other specific stocks. as we go forward and we see more of the opening of the economy in fits and starts. given where we are with the amount of stimulus we are with the fed and fiscal stimulus behind it. i think the opportunity for the stock market over the next 6 to 12 months is higher. given how far we've come back, we need a little consolidation and we go forward from here. >> that's a good point just the amount of fiscal and monetary value, we'll hear from the fed chair jay powell if we hear anything from them to suggest that they may be as concerned maybe these won't last as long, would that make you change your mind about the breath and the depth of this potential rally? >> no.

it would not, becky. i don't see any policy change out of the fed talking green chutes the equity market is looking past these you'll get a much stronger rebound in the third and fourth quarter than most people are expecting. >> thank you both. you've both made some really good calls we appreciate having you here today. we'll check back with you both soon okay coming up when we return apple shares hitting a new all-time high. what sent that stock soaring and how to play the news some of the biggest leaders. led by cosmetics company coty.

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coming up, apple shares soaring to new highs along with the other big guys like microsoft, facebook and amazon we'll get reaction from an analyst next as we head to break, take a look at shares of vroom whose shares more than doubled on nasdaq yesterday. the online retailer allows autos to be bought and sold without customers having to visit the stores we'll be right back. >> announcer: don't forget to subscribe to our podcast you'll get interviews, original content and behind-the-scenes content. look for us on alepp podcast or your favorite podcast app. for.

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apple, the shares closing yesterday at an all time high. stocks rallied 50% now has a market cap of 1.5 trillion joining us to discuss apple and other tech names, tech strategist at wolf research.

apple is the most valuable let's check. it's been up in a perverse way by covid-19, i guess, accelerating the digital transformation, stay-at-home, things like that you have to mention the flood of liquidity from the fed which has been more important for these stocks >> point ever liquidity is more important for the entire market. i remember we talked a few years ago could apple become a trillion dollar market cap we put out a report a few days ago, if anybody is a winner, it has accelerated digital transformation and apple stock has been absolutely amazing. even if you take the top 25 market caps in tech it's the best former in 12 months, the best performer over three months it's 25 times over earnings. they've had five quarters of beating numbers and earnings growth looks like it will accelerate

so still in pretty decent shape. >> we had some broadening out of the move not just tech but markets in general your troubled so much is concentrated in these beloved names right now? >> well, we certainly have been troubled that within tech it's been very focused on large market caps and our universal is equal weighted until april it's been a market performancer for the last 12 months within the last two months, it has broadened, so in tech i'm encouraged we're seeing broadening in terms of tech dominating the market it looks a little bit like 2000. things are different these days. the quality of companies is much better the software companies are real not just about eyeballs. we're gets over bought in the market so eventually consolidation is likely. >> if you look at the hardware, semi, software, internet services would you buy them across the board or which of those would you segregate the

main part of your interest >> you know, joe, we would be selective. we're still under weight because of hardware and semis. semis are doing a bit better it's still early software we downgraded it's become expensive. most expensive names in tech company are up 40% and you got some really high sales ratios there. we're getting a little more concerned about software we tend to be in internet which has done extremely well particularly ecommerce and services particularly in the transaction processing payment space. that comes back with the economy. so square, names like that we would be overweight in services. >> when did apple, even as steve jobs first talked about making their own chips for the mac. how long ago was that? now it looks like it's really happening as of some news yesterday. is it going to happen?

why is that -- is that a positive for apple or just more a negative for intel >> it probably a slight positive for apple. it's been speculated on for a couple of years. they've been working on it for longer than that it says a couple of things number one, apple always wants to control its own technology. it expects to bring better products and experiences to customers. second, as you point out, it is at least marginal negative for intel. tsm and taiwan has moved past intel in terms of processing capabilities and. it argues nvidia the is the processor doe watch going forward. so i think nvidia will be a big winner already has been and will continue to be in the future i think it's positive for apple. >> i don't have an apple car yet. can't fly around in an apple car. nothing really in terms of a great apple tv still phones, right? here we are at 1.5 trillion.

so it happened without that big new move air pods are important i have no vr glasses why did it happen? what does it need to do anything make an acquisition or something or come up with a brand-new exciting product or is it just going to be these incremental steps forward? >> i think there's a recognition that apple is an eco system company and obviously the big change in recent years has been services which isn't that unusual. hardware companies build bigger service company. apple is different than most it's a recognition there's staying power. there's free cash flow and big buy backs you can bet on at the same time there's some concern about lack of innovation and i would say that the wherewithal is really important with apple you mentioned air pods we put out a report about future

gaining of internet into combination an real and virtual worlds apple will be a big player there with some form of vr glasses they are not as innovative as people hope but it's still coming do you have to have some new big products and drive more service over time. >> okay. i don't know about the watch i guess it's okay. sorkin, you still got that watch on your sitting in your seat? do you still have the watch on, sorkin >> i'm not wearing it right now because it's just upstairs charging i don't have to walk around as much i do wear my aura ring >> what room are you in right now? what does it say >> my mood i only got -- my energy level is at an 83, joe. my readiness today 83. it says easy does it >> what's good for you >> says easy does it

i'm doing great. anything over 87 is a good day anything over 87 is a good day

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foogt after snapping a six day winning streak blackrock rick rieder will join with us an outlook retail sector and what stocks may be in fashion now. we got a look at the sector and names you should be buying or avoiding it's back to action for pro golfers. pga making its official return tomorrow tour commissioner joins us to talk about the changes being made to keep everyone safe second hour of "squawk box" begins right now good morning, everybody. welcome back to box right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures at the this hour we'll show you what's going on, on this wednesday. you know, just marginally off by seven points s&p 500 looking higher a little

over two points hire nasdaq looking higher again, up about 20 points. lots of news coming out of d.c we're expecting it later today >> i don't know how much volume there is but we're down triple digits just 15, 20 minutes ago suddenly we're up on those other two indices and the dow is almost unchanged there's a fed meeting today, a two day meeting wraps up today and this afternoon fed chair, j. powell will likely address the outlook for the economy and the pace of the recovery and now with the wednesday edition bringing us the wednesday edition of liesmania, steve liesman. steve, good morning. >> reporter: joe, a huge outpouring of support for this idea of liesmania, maybe three or four -- >> just works too well

it is something we witnessed over the years >> reporter: it is it is. definitely something let me talk about the fed meeting here where i suggest there's some risk associated with it because there's really no clear market expectation for what the fed might say or announce today and that's because there really hasn't been a clear signal from the fed about where it goes next let's look at some of the keys to the meeting first of all, some speculation we might get some more solid forward guidance on rates than they link keeping rates to low to some data to inflation, maybe unemployment that could be something that happens later. how does the fed, especially the fed chairman at his press chairman react to green shoots how much more will the fed do beyond what it's announced finally the return of the dots the fed skipped its forecast in march and now they come back and

there's some speculation, speculation that one of the dots may be negative. i'll talk about that in just a second first i want to show you again from our federal reserve survey where the market is in terms of expectations for this question on the fed survey you could have pick any one. it adds up to more than 100. 51% we can get date based guidance 42% said dish additional qe could be announced and 29% said caps on bond yield which would help the financing of the deficit over the years so there's three different things that are the leading candidates none expected tomorrow and not nearly an agreement on over time. let's talk about these negative rates. chairman powell has quashed the idea it would be something imminent or even in the top tier of the fed's tool box. there's some getting a lot of play is this report from the st. louis fed or two researchers there who wrote about the need,

potentially for negative rates if you want a decent shape recovery you need aggressive policy what does that mean? they said aggressive means the negative aggressive policy they said means the u.s. will need to consider negative interest rates and aggressive government spending such as spending on infrastructure i don't think jim is an advocate of this. if there's a negative dot that could be it. we talked about the extreme. let's talk about the consensus kathy bostjancic states at any time best. we expect the fom.c to make clear that the policy rate will remain at story until the recovery is firmly in place. that the fed stand ready to len via its emergency facilities we knew that going into there's some upside risk the fed could surprise by announcing something that the market isn't ready and maybe down side risk that the fed is unclear what comes next and maybe too optimistic about the recent data.

>> did you see yesterday that the fed will stay at zero until unemployment gets down to 3.5% and that could be four years do you think they are iran that camp right now does it really need to get back to 3.5, at 5 or 6 wouldn't you start breaking rates to get some ammo in the tank again >> reporter: joe, that's just a brilliant question because it really posits two issues for the federal reserve. i've been thinking about these things and trying to figure out what is the aim of policy here is it five, is it six? what's happened to the non-affiliationanon non-inflationary rate. getting back to 3.5% is a very aggressive policy. but i think the fed can say, you know what?

i'm not going to target unemployment, because i don't really know the relationship between unemployment and inflation. what i can target is inflation and let unemployment go where it is and i think that avoid a political issue here of where the fed should aim when it comes to the unemployment rate and getting back but, yes, the markets already see zero for a year. and most people think it's going to be low at least two years so 2022 before the next rate hike if there's one that comes >> amazing becky. >> thank you we're going to talk more to steve. in the meantime let's bring in another voice for us joining us right now to talk more all of what's happening is rick rieder, chief investment officer of global fixed income at blackrock and head of global allocation there rick, if that wasn't enough to discuss and talk about, let me add one more layer to this

i don't know if you saw james gorman he was on "closing bell" on cnbc yesterday. he said that if you're looking at the unemployment number you have to remember the ppp, the payroll protection program may have kept a lot of these companies open, the unemployment rate down. when that runs out there are questions about it when you look at these small businesses you have to wonder if they are viable businesses at this point we still have at that lot of work that needs to be done should we be concerned about those issues or think j. powell, the fed and federal government will step in if there are additional problems there? >> so, becky, i think you hit the nail on the head in term of the issues out there by the way one of the paradoxes out there in term of the marketplace, the fed has to keep and the fed's goal is maximum employment so while the employment number was breathtaking in term of the speed of the recovery, there is still going to be a persistent

unemployment dynamic that will deep the fed on hold for a longtime which we'll hear from the chairman today because of those small businesses, because of -- by the way, people 65 and above who left the workforce will be a persistent drag and the big question is when that comes back you're going to have what's the higher unemployment rate for a period of time going into the beginning of next year you're probably going to have an unemployment rate that's in the high single digits that's a recessionary type of unemployment rate. it means and what we'll hear from the chairman today is you'll keep rates on hold at these levels for a long period of time. that gets into part of one of the challenges we'll have and is the equity market is going respond to that and financial conditions will get easier and easier that's the bond the fed is in and part of the challenge they have to deal with over the coming years >> it's not just the fed, though it's the public policy we've seen the fiscal stimulus that's gone into this as well and how --

just in terms where the markets are right now if we don't see additional the stimulus the white house has said they want to see a fourth plan but you got to look at the differences between what republicans and democrats want at this point it's not going to be easy. how much of the gains we've seen recently are riding not only on the fed but additional stimulus money? >> you're right. markets anticipating to get another round of stimulus. chairman powell has been talking about the most effective form of policy going forward is more fiscal and it's incredible fiscal state and local assistance assistance around the health care dynamics. so there's going more. i think you're right the markets are anticipating that. i think people and i've heard it on your show and others for a longtime now, people don't think about the amount of stimulus that's gotten into the system is so big and not only is it so big the multiplers on top of it are so significant why people continue to be surprised if you look at the consumption data, the credit card data, the debit card data,

some industrial data, consumption is improving by the way, the housing numbers are pretty impressive. i think the markets while they are will continue to want more and ask for more people are starting to realize that this stimulus, monetary and fiscal is very large and will get into the system going forward can it bring down unemployment back to that 3.5% that steve was talking about as he said, i think that's going to be really hard >> okay. so, what do you do now even after these gains? this wasn't an easy call a month ago or two months ago when people said get in, put money in stocks it's even more difficult now that you've seen the gains we've picked up. what do you do >> i think it's much more difficult now. you know the market when you look as you said on this show, the pe multiple it's hard to get your arms around the pe multiple on a short term basis.

when you think about the text market it is closer to 5%. that's a pretty generous number when you've got interest rates that are going stay low. so what do you do? you have to have equities in the portfolio. in a balanced portfolio to not own equities when interest rates, you think about the whole five year, functionally zero you have to be in equities keep a moderate position some names that are running up, some of the value stores some companies that are still going to have a hard time is a bit overzealous but i think technology will do well. some of the industrials are coming back. some cyclicals make sense. i think key for a portfolio is while having some equity in the portfolio, building income you got to build income. why you see demand in the credit markets, parts of the emerging markets,you have to get income fed won't allow you to get income through what they are doing through mortgages, where

do you get income. credits markets are interesting. build some credit in the portfolio and other forms. talk about different forms of getting income that's big in the equity market, you can stop call openings against your equity position because credit is still high. build some balance in your portfolio. >> what specifically in terms of where you build that income? what else would you the tell people >> so, i think the credit markets are still interesting other than a little bit because you have so much supply. i still think that market is okay i think some of the secured markets that are clearly starting to come back gets you, whether that's in real estate area, residential real estate area which we would argue is in really good shape. that's a pretty good place to get some income. options. use option strategies in your portfolio. i think makes some sense convertible bond market has opened up and that's an interesting way to get some debt and equity and we got involved

in that recently haven't seen that market in a robust way for a period of time. get a bit of if come and get your equity upside potential the market doesn't give you that much data to get it and people need to search for where you get income by the way, there are parts of the emerging markets not in some of the diceyer places, that are creating some greater yield and have some persistent growth dynamics within them >> rick, thank you i enjoy our conversation we'll have you back again very soon >> thanks, becky >> thanks. andrew >> okay. coming up when we return the latest read on the housing sector as the economy re-opens we'll run you through some of the new mortgage applications. here's an early look in how stocks are moving. "squawk" returns right after this

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to bring tesla's to production production of the battery and power train would take place at tesla's nevada factory and most of the other work will probably be occurring in other states this comes right after we've seen the stock run on the new semi and other truck maker so we'll see what happens to the tesla stock but also to the rival. i wonder whether these announcements are connected at all. becky. >> thanks. the latest report on mortgage applications of just released. diana oleck joins us now with the numbers. hi, diana. >> reporter: rising interest rates did nothing to deter the continuing onslaught of mortgage demand from home buyers last week applications for loans to purchase a home rose 5% compared with the previous week and 13% higher than the same week one

year ago now mortgage rates started the week near a record, low but then rose steadily throughout the week with a spike on friday following that surprising may employment report. the average for the whole week was only up slightly those the 30 year fix rose to 3.8% low rates to start the week fueled the 11% jump in applications to refinance a home loan that volume was 80% higher than the same week one year ago and that's when mortgage rates were 74 basis points higher refis were up for the week the annual comparison is getting smaller as fewer borrowers are now able to benefit. lenders are not offering the best rates on refis because of added risk in the market because of coronavirus mortgage relief programs >> diana, thank you. coming up, golf guesting back in the swink thing. pga making its official return tomorrow on the golf channel we'll speak to the pga

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pga tour making a big robertson since the coronavirus. the charles schwab challenge gets off tomorrow. spectator free jay moynihan i've played with you you need broad shoulders that the entire country and sporting world is watching how this goes, and precautions you're taking to

make sure that it can to be done and all of us, i think i speak honestly for all sports fans, we want this to work. we need this to happen you good with this >> we are good we are excited we're confident. and our players are ready. they certainly have been eager but, joe, it's hard to believe that on the pga tour we only played one round of golf since i left the three you on march 9th. since we left here on friday the player's championship a toch work has gone into resetting our schedule, thinking through eligibility and obviously developing a health and safety program and protocol and that began last week, players, vast majority of them are already on site in fort worth, have gone through testing and it's going exceedingly well >> i want to talk about that as a golf fan i just want to talk about what's going to

happen down there. so except for the players tournament, there are more tour winners, guys that have won a tournament than on any other tournament, i think. so there's only what 40 guys that could be first time winners out of the 147 or something, right? >> exactly right we got top five in the world 16 of the 20 in the world. virtually all the "top 30" coming into this in the fun and one of the only times we ever had 100 winners in a field so players have been away but been eager to return we got a stacked field at colonial country club and players started come in over the weekend to prepare not just for this week but for a great run that will take us to the end of the fun playoffs 14 tournaments over the course of 1 weeks like a lot of other sports we're coming back in the heart of our season with a lot on the line. you'll see great fields in the

weeks that follows >> tiger won't be there. i wish he would be there at every tournament the only guy similar to michael jordan in terms of just dominating i wish he was there. i don't know why he's not. rory is number one, right? r he's never competed in this tournament koepka and jon rahm. it's going to being a great even without tiger. >> joe, like i said, you're going to see the best players go on a run here not only through the fedex cup playoffs it's really a great moment for our sport because as we've worked through this pandemic, a lot of golf courses have been opened and today you got 50

states, 95 plus percent of golf courses opening. now to see the world's best players in the heart of the golf season a good thing for our industry and i know our players are excited to inspire the game and make a great contribution to the game and to people's well being. you guys have covered this really well as you talk about the return much sports and we're honored to be in a position to be one of the first. we've and the it very seriously. we feel it's not only a responsibility to our players and our constituents, but as you see more and more sports getting back up online this is a really important moment as you displayed, i will tell you that, you know, when you talk about re-opening, we sit here on wednesday morning, we had every player and caddie that was coming to fort worth tested last week. pga tour players on site this week, we had 481 that have been tested through or sanford health lab and to date we don't have any positive tests so we're invited guests in every

community where we play and to come in and to know our small bubble has tested negative, i think really puts us in a good position as we walk into this week and as we move from "market to market" including going hilton head for the rbc heritage next week and traveller's the following week >> becky, you got a question for jay >> i do. jay, just on that point, it seems to me like you all are in a pretty unique position i don't think other sports will be able to have the same luxury golf is a noncontact place you think other sports leads will be able to come back as quickly like you all are doing >> well, you know, i'm excited to see that other sports have announced that they are going to be coming back in the coming weeks. but, becky, you're exactly right. that's why people have been able

to play our sport over the last couple of months we're not taking anything for granted. we have identified every movement a player and caddie has over the course of the week. we're executing our testing plan but then an on site safety plan and our sport lends itself to social distancing. we're going make certain the sanitization we have on property, the fact we're limiting spectators. to us it's about returning this week and doing so in great fashion but a sustained return and we're going to be -- we think we have an excellent plan, a plan that's been developed with a lot of medical advice from our medical advisors to outside experts and keep adapting that plan to make sure we put ourselves in the best possible position again to sustain pga golf for a lightning time to come >> pga tour in terms of charity has always been socially conscious and responsible and you're honoring the memory of

george floyd as well and you've weighed in a heart felt letter that i saw as well so it's impossible not to at least mention that i think at the beginning of the tournament, people tee off at -- >> no one. will be teeing off at 8:46 we're observing a moment of silence, moment of prayer, moment of reflection each of the four days. and, you know, to your point, joe, the tour has an unbelievable platform. i mention the fact we're invited guests in every community where we play. and as we look at where we are right now, coming off the pandemic and with the racial and social unrest to us, as i said, we're going step back. be a part of the dialogue. be a part of the solution. and we'll work with all of our tournaments in those markets as we go forward to make a difference our sport and the pga tour platform puts us in a position to do so and i'm inspired.

i know our constituents are inspired to do exactly that. >> we played, so you know that me and the caddie, major social distance he's usually off somewhere, you know, nowhere near where i am, looking around, you know, trying to -- or after a chip he's very close to me because it's usually like three feet from where the first shot was anyway you've seen that. jay, we'll be watching i was going ask you,000 bet on this because i haven't hit the name of the bet on draft kings i can pick the guy to win out of 147. is there a way to do it, pick the top ten. do you know? have you tried >> i can't try but i'm certainly well aware and i do know this week there's over $3 million pool from draft kings, i believe the largest ever >> look at you we're all backed up. >> there's an opportunity -- they have what they call a

millionaire pool we got a partnership with draft kings. so a lot of innovation you'll see here in the weeks ahead. >> koepka, he hasn't gone anywhere >> he's been playing well. >> okay. jay, thank we'll be watching on our sister network. thanks for coming on today i appreciate it. the tournament kicks off tomorrow on our sister station, golf channel will broadcast for the first two days and then some other network will try to do as well as the golf channel and nbc does watch thursday and friday. watch even if it's on cbs. go ahead andrew >> still to come this morning on "squawk box," shares of chesapeake energy dropped.

the company considering to file for bankruptcy we'll get what's next for the fracking pioneer seeing some big moves. a lot of bankrupt companies that people are day trading later we'll drill down retail stocks amazon, costco and walmart who have been big winners during the pandemic a look at what other names for the retail rally as states re-open. "squawk box" returns right after this.

it has been a dramatic week so far for chess speak energy.

the stock of halted numerous times after spiking and sinking and there's talk that the volatility was driven in part by retail investors investors are doing some crazy stuff, brian between this and bankrupt companies and everything else. i wonder, it looks a little frothy maybe is this a sign of that, do you think? >> reporter: everybody wanted the retail investor to come back and they are back and everybody is bashing the retail investor you said crazy week. look at that chart chesapeake $13 five days ago to 80 bucks, back down to $22 the company on intelligent bankruptcy and i want hasnt hasd it may hertz and j.c. penney, booming many stocks of bankrupt companies are trading or were trading above where they were before the bankruptcy.

now i don't need to remind our intelligent office that often the bankruptcy process de-equity goes to zero or at least close to it because equity holders are the very bottom of that credit tore chain what's going on? is it retail investors it's partly. we all know and talked about robin hood but it's market structure, guys. it's how the order flow may be processed. i know it's early. i don't want to be too wonky even earlier on "worldwide exchange," they track order flow and market moments and he reminded us of one very important point. robin hood sells its order flow to the high frequency trading firms. listen to how that works >> in all of these firms sell their order flow to high-speed traders. and this is a key reason for how

some of these stocks have behaved that you would think have very little to back them, that would support the equity valuations that you see today. >> reporter: so, guys, think about that andrew think about that. trade on robin hood. the order flow goes through schwab or whatever and sell to it a high frequent trading firm. the firms know what stocks investors either are going to bet on or soon to bet on they can push back that stock up they can push that stock down. it's all very interconnected and i have a feeling if this goes on, it gets blown up as they say in terms of buying it at five and having it go zero overnight it might get the attention of regulators nothing illegal. it's how it's structured high frequency firms who capital people are buying ahead of everybody else >> we've been talk a lot about

robin hood for a longtime and some of these other trading platforms selling this data. why do we think it's showing up right now? why are we focused on it in this way? wouldn't this to be done across the board with all stocks or is this something particular about stocks that are bankrupt or just so unusual we're all looking at it and going this makes no sense and now we're trying to make sense of it. >> yes to all of your questions i think there's a few things number one trade is now free just a couple of months ago everybody went to commission free trading number two, stuck at home for a couple of months not much to do joe just talked about golf why not get in the market. the number three, these stores let's be clear, are cheap on a real basis if you mayou 35 correspondent cu

can get in for a couple of hundred dollars. the stocks are inexpensive free kind of sexy again, if i may use that the justin timberlake trade. i just coined it they are bringing sexy back. remember that order flow and what you and i want to do in robin hood is all interconnected do you know of anybody that works -- >> i got to think about that i like that. i like that idea brian, thank you bringing sexy back we appreciate it we'll see whether, whether it ends sexy or not for, for our viewers and for traders playing this game. but in the meantime we'll discuss a little bit of realty brian, thank you again looking forward to seeing you soon, of course, on "worldwide exchange". i want to discuss the individual

investors role chief investment strategist at td merge and mike santoli, good morning to boston you. weigh in on this we're looking at these stores companies that are filing for bankruptcy, they are likely to end up with, you know, maybe zero, maybe it's a couple of cents. i don't know what you think. j.j., what's behind this >> well, if i could address a couple of things number one in terms of how order flow goes, very public information. it's on the 606. we do regular and irregular with anyone who interacts with your order flow to make sure our clients get the best fill possible 90% of our orsd get improvement in terms of price. there's more to that story and, you know, an accusation that firms are racing our order flow, i think people should be a little bit careful in making that type of thing because, again, this is all public and very, very well regulated by the sec you know, andrew as far as a

march negative around retail traders. 18 months ago we would throw up our hand on wall street and say oh, my god the retail trader, households aren't participating, why aren't households participating in the market. now households are very much participating in the market and all i hear i can't believe all these people are doing this. so the one story that's not being told here is, when we are seeing, you know, unbelievable -- there's no question about that. we're seeing a three expert participation in our education with the number one thing that people are looking up is fundamentals of stock investing. are some people making bad decisions? of course. always going to be some people that make bad designates but people have the time to actually look at their investments for maybe the first time ever and understand not only what they are trading but hopefully their 401(k)s, et cetera don't everyone is talking about -- go ahead. >> just to respond to this i

want to bring brian back into the conversation just because we've been having the conversation before we began ours and i know he has a thought and wants to bring it in brian? >> reporter: yeah. thank you, andrew. j.j., i love you but i'm -- no accusations. i want to be clear what i'm saying and maybe my mouth isn't working right. totally everything is above board. what i was trying typical ply and obviously i did a terrible job, was simply because the way the order flow works it can push these stocks either up or down a lot faster than it normally would because let's say i want to buy 500 shares of a corporation and -- >> and everyone. >> reporter: and they see that order flow coming from a lot of retail investors, maybe they buy 5 million shares not because they are going anything illegal but they can see the way the wind of

investments is going and it works up and down. all i was trying to suggest because this is all set up, all above board is that it might be the reason for these extreme price moments because of that. is that a fair statement yes or no? >> what i would say is i'll never speak for another firm but the experience we have, citadel being one of them has been phenomenal as i said everything is very highly regulated how anyone else runs their business i can't speak for i'm say our experience has been very good. >> let me bring mike into the conversation mike, do you think there's any -- i mean clearly there's money to be made or somebody is making money trading these bankrupt zombie companies. how dangerous a game is it >> obviously some reckless stuff going on people yes, s people less informed if you the think about it, so many companies were driven down

to prices, stocks were driven down prices where it implied a high probability we'll go extinct or get life lines. you got government support the for airlines if you looked at macy's or american airlines or carnival cruise lines they were on the brink. so my point is it's sort of an extension in an extreme version of what's going on in the market in general where companies are getting reborn and we thought they were on the brink and then they came away from the brink now, i think multiple things can happen at once, which is you have this sort of pocket of hyper active trader activity sort of speeding on its own. a lot of things came together at once zero commission. people staying at home on the other side more traditional investors have been very skeptical of this rally floss in terms of equity funds have not been strong hard to extrapolate what's going

on in the pocket of the market and saying everybody is too bullish, the market is too crazy and it says something grand about where we go from here in terms of the overall index >> j.j., speak to that the other thing i want to say the 6:00 hour this morning he made the point there's $3 trillion sitting on the sidelines here making the bullish argument. you're seeing the flow you're seeing what retail customers are doing. what do you think the sentiment is right now >> well, you know, it's interesting, andrew. we saw what our clients are buying and selling we have a volatility factor interest what it does show it's at the low end of the range i would your point is well taken here our clients, they are definitely being involved in the market but they are not all in by any stretch of the imagination you know, if it's the old toe in the water, maybe mid-thigh at

the absolute highest even below our average level of exposure to the market >> okay. j.j., thank you so much for helping to explain all of this mike thank you brian, thank you for stirring up a little bit of a debate this morning but an important one i'm glad view earns the public could under it better. thank you all for the conversation becky, over to you all right, andrew. when we come back, retail stocks you should be buying now and the names you should be avoiding we'll take speak to a retail consultant he has some thoughts now that macy has secured funding for him that was okay. at the top of the hour we'll speak with senator jeanne shaheen. "squawk box" will be right back stock slices.

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welcome back to "squawk box" the dow will be ready to turn positive down about three points. nasdaq now showing some pretty good good gains up about 44. setting new highs. s&p is now indicated up too. so news out on what happens in the stock market today as it always is at this time stalling box will be right back at leaf blowers.

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welcome back, everybody. winners and losers are emerging in read. amazon, walmart, tar gaent coge costco are the ones doing well they were allowed to be open during the pandemic. macy's is in a position to do well as well >> that $4.5 billion helps us invest in our business as we define as the strategy back in february and it also helps us retire debt

ma the tony stewa maturities coming in january '21 and january '22. the ceo of jay rogers worldwide and yesterday you sent me a note that laid this out you said now that macy's has secured funding you can see the entire chess board you know who the winners and losers are >> we know nordstrom will be with us. macy's will be with us kohl's will be with us niemann, saks, lord and taylor are gone we know that as you come down from that we've got the belks, dillard, some will go away some will be less relevant macy is the only big player. they are well secured through 2022 at least. as far as funding. so they are going to be with us. we had some doubts about that for a while and how that sector

would work when you get below that kohl's makes it but penney's or sears shrinks or goes away the ones you already mentioned the essential retailers they never struggled at all they were already winning before covid. now they have a huge head start on everybody else. they got plenty of cash flow they can invest in new technologies everybody is going to have to get better and better at online digital and all the things the customer will want to feel safer as well as contactless transactions that's who will win people who can do all of that and remain open and now we see what that's going look like. when we get to space inside the mall we'll see a lot of attrition. williams and sonoma 60% online will be fine and lululemon will be fine because they've been selling during the pandemic and their business got better and selling the kind of product people wear when they stay home. there's winners even inside the mall in general with malls losing

ground for a longtime. now it's losing ground fasterer and is going to lose it faster i expect to see 20% of the inside of the mall going i expect to see a third of the malls go a lot sooner than we originally thought we had that plan somewhere in the 30 range now we have something in the 2021 range i was thinking about how retail has changed over the last 20, 25 years used to be that in retail it was this battle between the great merchants and the bean counter "moneyball" of retail where if you had a great merchant or somebody with that special eye here's what will sell and we'll put it every where and win then well run, well operated companies that were run by the bean counters and those were the ones that sometimes outperformed for the market and more steadier operators. now i look at it i don't know if either of those can survive in this new world. you have the to be an operator i guess but maybe more importantly you have found how to run an

online shipping and holistic retailer, how to do all of those things and i don't know if anybody can survive if you're not willing and able to reach out to the customer in the way they want to shop. >> i believe you're right. macy's was one of the pioneers of omni channel retailing. but despite that they still struggled because the space is struggling you have to remember, i was in the industry and for 25 years we had a 17% annualized return on shareholder up sales and up earnings for 25 years in a row before 2000. 1975 to 2000 that was a year where the department stores were failing fast and the bean counters which we were were still winning the game but that inevitably was going to be surpassed by things like off price selling. now you go across the street you go to t.j. maxx or ross and they didn't really exist at the time that department store was

winning the game they were just starting to grow. we didn't have amazon that could sell anything you could sell pretty much at a price that the customer wants to pay and get it to them the next day that didn't exist either until 1999 for all practical purposes. all that damage that's been done in the whole space, if you call it damage, i call it creative destruction, but that all occurred from 1999 to now. walmart started its game in 1962 destroying retail. so it's been a big change to the retail world >> thank you good talking to you and we'll see you back here again soon >> thank you andrew >> coming up, thanks becky when we return treasury secretary stephen mnuchkin heading to capitol hill for a hearing on small business protections. we'll talk to senator jeannie shaheen on what to expect when "squawk" returns right after this.

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good morning markets ready for their next direction. a day after the dow snapped its longest winning streak since september and tech gains powering the nasdaq to 10,000 for the first time investors once again pay close attention to today's message from fed chair j. powell the hunger indicator what consumers are craving restaurants are seeing renewed business lock downs easing. new data to enhance our under of nationwide openings. special skinterview on equalityn america. citigroup vice chairman ray

mcguire will join us as the final hour of "squawk box" begins right now. good morning and welcome back to "squawk box" i'm joe kernen along with becky quick and andrew ross sorkin now the dow is up. the dow has been the laggard in the pre-market session for most of the morning now up 20 points nasdaq really led the way higher for the averages it's tried to stay positive for most of the pre-market session and, obviously, has been leading the market higher. those big names in technology, many trading at new highs. like amazon and microsoft and apple and trillion market caps and like nothing has happened almost they almost skipped at least

where the prices are of the stocks almost skipped what we've all been through for the past four months or so s&p now up about 8.5 points. then either skipped or benefitted some technology from the lockdowns and pandemic kind of a strange way warped anyway, the ten year note is at .8 of a percent this morning becky. >> all right, joe, thank you very much. we're going start this hour with the nationwide economic recovery from the coronavirus a group of senators is pitching more relief for small businesses those with 100 employees or fewer. this push comes as treasury secretary steven mnuchkin gets ready to testify today on the c.a.r.e.s. act and paycheck protection program joining us is jeanne shaheen a member of the small business committee that will be hearing today's testimony. senator, thank you for being with us. the announcement is just being made in the last couple of

minutes. why don't you tell us what it includes and the other senators who are doing this with you. >> you know, new hampshire is a small business state and i heard from a lot of small businesses that they got the ppp loan early, the they played by the rules, but now they are about to run out of money this week and next week those loans will be due and for many of them particularly in the hospitality industry they were shut down fixes last to open and worried if they don't get some additional help they will go out of business. this is an effort to respond both to that concern and also to the concern of so many very small businesses, the mom and m pop shops with under 10 employees who had trouble getting loans. the way the guidance got rolled out many of the bigger companies who had long term relationships with some of the big banks got the money first and so we want to try to ensure some of the

smaller businesses get actual, get the help they need >> you're proposing this with two of your democratic colleagues, though i believe senator coons and cardin and i just wonder seems to me the era of bipartisanship is starting to come apart again at some point because different senators represent different states and different stages of re-opening and being back in business what the is the reaction, do you think you'll get from your republican colleagues on this? >> well, i hope they will be helpful. the original small business provisions in the c.a.r.e.s. relief package were bipartisan i worked with senator cardin and senator rubio and collins the four of us helped design that program and got a lot of support for that and i'm sure that much across the country is hearing from their constituents that small businesses still the need help and we need to be able to provide that help.

so we wanted to go ahead and put together provisions in a bill that we could then try to get some bipartisan support for. so we'll be working on that and hopefully the administration will help as well. as you pointed out secretary mnuchkin and administrator will be before the small business committee. we have a lot of questions for them and one of the questions i have is are you going to support this effort to ensure that small businesses can stay afloat >> have you spoken with either senators rubio or collins to this point about this idea that you have right now, this new proposal >> i have. both of them have expressed interest we haven't yet gotten their support for or sponsorship for the legislation but we'll be continuing to talk to them >> i guess the reason i push this, senator, is just that we have started to hear kind of the splintering of opinions at this

point and that comes from places like senator ted cruz who has tried to make sure he's threading a fine needle with this he wants to make sure he supports the police departments and first responders we've heard from senator down in florida who talked a little bit, rick scott, about how he's concerned about the amount of money we're spending at the this point. you can under it from different states perspectives where they have been open for business, where they have tried to get back and re-opened things. here in the northeast we tend to look at things different leadership because we've end in the hot zone and shuttered for much longer. had much higher number of cases. i just wonder how do you do that outreach and are you concerned at this point about it not being necessarily a national perspective that's coming at this point >> i actually think there is a national perspective among the business community that they continue to need help. and as i said, one of the big groups i heard nationally is the hospitality industry who feels

like they have been among the hardest hit. the tourism via where people who do big venues still are not able to open up and that's true not justin northeast but across the country. i think it's incumbent on all of us and what we've heard from j. powell, what we've heard from economists across the country is the worse thing we can do right now is to pull back on our efforts to stimulate the economy. because what we need to do is encourage businesses, encourage growth, encourage the economy to open back up virtually every state in the country is in some phase of re-opening we are in new hampshire. but so it's incumbent on all of us, i think, to try to continue to support that economic re-opening and people getting back their jobs, and that's how we're going to get this economy moving again >> the jobs number we got last friday was better than had been

anticipated. talking about horrible numbers overall. but actually jobs gained, 2.5 million jobs when people were looking for another big drop and unemployment rate not as high as had been anticipated we heard from james gorman he was on close bell yesterday and talked about how a lot of small businesses, the rehiring has been there, has been because of these programs like the ppp where do you think the real picture for the economy is right now between these different reads we're getting and then questions about how much of the hiring is because of the federal spending that's been there >> well, i think a lot of it has. certainly the numbers on last week were positive a lot more positive than any of us thought but 13% unemployment rate and millions still out of jobs in new hampshire one in five granite staters are one employed right now. that's not good jobs news. we got to do everything we can

to help get people back to work. that's why a conround of help for small businesses is so important because many of the people as you said who are employed right now are employed because businesses they work for were able to get help through the paycheck protection program and despite the challenges that it had in new hampshire we got 22,000 businesses who have gotten over $2.5 billion that's help for a lot of people and if we let that help stop then we got a lot of small businesses who are going to have to layoff those employees again. they are not sure they will survive. the this is still an urgent situation. i can imagine anybody thinks 13% unemployment is acceptable we need to keep working on this. >> senator shaheen, thank you. we'll be watching later today and we do appreciate your time >> thank you very much thank you. joe? >> thanks. coming up we continue our talk

with america's biggest business leaders on battling racism and attempting to heal the country of century old wounds. citigroup chairman will join us for a rare interview as we head to break take a look at the tesla hitting an all time high in the pre-market reuters reports the ceo elon musk says in a memo it's time to bring tesla's semi commercial truck to volume production if there is anyone still short, who has any money left, because they've been short since like 300. anyway if anyone is still short it's really painful. that's all i can say of course this comes amaid the extreme volatility we saw yesterday in electric truck rival. we'll lkta about the latest developments when "squawk box" returns. we hope you find these digital solutions

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welcome back to box. futures are now -- those are some gains almost 50 points nasdaq indicated up 73 or so and s&p indicated a level we snapped a six day winning streak yesterday and gave back about 300 points but some green numbers this morning. andrew okay thanks, joe. we're going to continue our conversation this morning on the roles of corporate leaders in making american society more just and equitable our next guest has adviced on some of the biggest deals. joining us this morning is vice chairman ray mcguire and chairman of citi's advisory business ray, thank you so much for

joining us this morning. there's so many important things to talk about in society i do want to get your thoughts before we even delve into that just on the markets right now, capital markets, you're talking to ceos constantly about the way they are feeling and trying to understand whether you think the way they are feeling is reflected in the market as the u.s. re-opens right now. >> thank you for having me i'm reminded today of the great 21st century philosopher, we started at the bottom and now we're here with respect to your question with the markets, the debt markets are wide-open. equity markets are also open prior to the confidence that appears to be on wall street, we saw companies accessing their revolving lines of credit. today we see them going into the public market. there appears to be some

disconnect, however, between what is reflected in the capital markets and the stock markets and what is getting reflected in the neighborhoods. or the reality of the neighborhoods, i should say. >> ray, just so i'm clear, in terms of the way you talk about these neighborhoods and what's happening on the ground, is there -- do you get an optimistic sense from ceos about their own business right now >> my sense is that there's some cautious optimism. we've never been here before and, therefore, we take each day and each day's market volatility and we assess how we'll plan the for it supply chains have been disrupted. it's not clear how the american consumer will react to today's dynamics and when i discuss the neighborhoods, the neighborhoods are unsettled.

>> ray, i want to talk a little bit about your story i went back and found it and you'll remember, i wrote a piece about rayma gwi mcguire grew up in dayton, ohio. tell us your story especially in the context of what's taking place in america right now >> yeah. thank you. again, thank you for having me my story started from the bottom, i started from the other side of the tracks i've been on wall street this september for 36 years my mother who is 94 years old and a social worker raised me and my two brothers with the help of our grandparents i started getting bussed when i was in the sixth grade there was a teacher who recognized i had some talents. so i got busted to the suburbs in dayton. hour, hour and half away after i walked two miles to get the bus.

and i went to a school a teacher said if you're as good as they say you are test yourself against the boys in the east i got into thesixth college of which i applied. i eventual went to harvard college and then took a year off on a fellowship and went to harvard law school and harvard business school. i have today been the longest standing head of investor banking in probably the history of wall street i've been at citi for 15 year and as assad on wall street for 36 years remember, i was on scholarship from sixth grade until i finished graduate school they asked me how i got here and i tell them it's a combination of prayer, preparation,

performance and paranoia this is not about me it's all those kidsed who look like me and many don't it's about education education was our ticket today the educational system is simply reflective of the institutional racism we have experienced or at least for 400 years. and so i lived through the crisis and the systemic racism every single day but i think maybe george floyd is different maybe george floyd is different. remember we know the roll call of the inner-city from emmett until to ahmaud arbery to breonna taylor to eric gardner and now to floyd maybe this time, maybe this time, maybe this time it's

different because there's no confusion. we saw cold-blooded murder eight minutes and 46 seconds and so when my 7-year-old says to my mother or to my wife, mommy why is that policeman has his knee on that man's neck, mommy is he going to do that to me and mommy, will he do that to you? will doe that to papa? will he do that to cole and else gentleman? -- ella? mommy why are the other policemen are standing around. why is he saying i can't breathe. i can't breathe. remember eric gardner couldn't

breathe. so what do we tell our children, what do you tell your children, what do i tell leah? >> ray, it's heartbreaking let me ask you this. as somebody who advises corporate leaders around the country and around the world and so many corporate leaders are trying to step up, talking about stepping up, thinking about what they can or cannot do, what would you tell them to do right now? >> well, first you have to acknowledge -- the covid and all its disaster, acknowledge the disproportionate impact covid has had on the black community disproportionate what covid has done is expose the virus that existed here for 400 years. there is systemic racism of economics. the systemic racism in

education. the systemic racism in health care the systemic racism in the criminal injustice so what i say to the ceos and to the corporate leaders around the country and around the world is that this time should be different. this time has to be different. i applaud the tens, hundred millions of gifts and messages we've been there before. let this just not be another stop by another grave marker what the world has now acknowledged is this racism exists and since wall street is focused on numbers and corporate america is focused on numbers, we have to understand that in 1955 the fortune 500 was created. 65 years later there have been 20 ceos. today there are five who are

black. of the 70 trillion assets that we manage less than 1%, less than 1% are managed by diverse, what they call diverse managers. if you think about african-americans, it's going be significantly less than that in new york city, which has 65% minorities, less than 3% of the contracts go to those minorities at my alma mater which has served as a feeding pool for wall street talent, this year they had 938 in a class of 2021. they've held consistent with 50, 5-0, 50 african-americans and that number is held constant not increasing those numbers for three decades. what i do tell ceos? we welcome the millions of dollars. we welcome the relatable messages but, we need to do more.

we need to change the relatable messages and the $10 million which are important. they don't get -- they don't begin to get the systemic racism we can satisfy ourselves that we check the box yet again. we can satisfy ourselves that at a george floyd funeral we had more mourners, a wider television audience, and six months from now or maybe six weeks from now we forget the george floyd eight minutes and 46 seconds knee on the neck by those who take an oath to protect us that abuse us. what should corporate, the corporate world do we need to change a mindset. we need to have conviction to change the mindset it's not check the box it is not check the box. we need to have the courage to

recognize this is a defining moment if i look at those protesting, as many white kids, millennials, boomers, generations out protesting i got some rioters, some looter, some people out there that are political opportunists people are now saying this is a defining moment in the course of american history and we taught thakt moment otherwise another sad day in the neighborhood and we all will have witnessed >> ray, are there concrete things that you think companies should be doing? we all talk about diversifying the boardroom, diversifying management doing more to recruit african-americans and the like but are there specific things that you would like to see right now? >> let me give you one example here where we can make a material difference. by looking at education and the racism that exists in education. look at the results in august of not so many months ago of the

new york state education you look at the testing results, 65% of black or african-americans are below proficient we're in this debate about public versus charter and kids suffer we had to, unfortunately, go to home schooling we didn't have internet for computers in the neighborhood. why doesn't corporate america facilitate that? why don't we invest in compute earns technology in the neighborhoods? that's one tangible way to go about it why don't we invest in back office support for the 96% of small businesses that are sole proprietors? why don't we put capital into the neighborhoods? i can come up with a project that is not a project but something that will overhaul the system i got infrastructure that allows for vocational training and technology and i got capital

1% less than 1% of $70 trillion. that then helps me create, that helps me create more wealth which goes into the community. so there's a number of tangible things that we can invest in >> ray, before we let you go, i got to ask, because it's been in the news the there are a lot of political leaders and business leaders in the city of new york that are trying to recruit you to run for mayor and i gather you've had conversations with them, they've had conversations with you would you like to run for mayor? would you run for mayor >> andrew, listen, i've read the same reports i've received similar phone calls. this is the moment in time where leaders have to decide what difference they will make. what role will they play leader have to lead and soldiers need to get prepared we need to do whatever we can and commit every resource we

have, every single resource that we have combat this 400 years of systemic racism across every one of the important, important areas, education, economic, criminal injustice and health care i will do whatever it is that i can, my part, to take on or to continue to have a leadership role in this great city of ours. we can do better we must do better. it's important for us to survive. >> ray mcguire, it's a powerful message. we appreciate you being with us. a privilege to spend time with you. we hope you come back and continue this dialogue with us >> thank you for having me >> thank you >> becky >> andrew, thank you that's great to hear when we come back a shift for starbucks. we'll bring you details on some pandemic driven changes that have just been announced by the

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. welcome back to "squawk box" on cnbc. seconds away from the latest consumer data. futures turned positive. rick santelli is standing by at cme in chicago the numbers please >> reporter: consumer price index is down .1 follows .8 unrevised and stands as the second worse level meaning the second biggest drop in headline inflation since 1947 the first was november of '08 at minus 1.8. food and energy, also down .1. last month that was down .4. that stands unrevised. unlike headline didn't start in

'47, notion of course started ten years later in 1957 and last month down .4 was the biggest drop ever in core. year-over-year numbers cpi is up .1 year-over-year core is up 1.2. these numbers are very largely as expected although on the year-over-year numbers you can argue that up .1 is a lot cooler than up .3 we were looking for when it comes to inflation and just pricing issues in general, obviously what's going on around the globe, it makes it pretty difficult to handicap what the true picture is because as many companies open up of course and demand in other countries remain low. highly depressed and many of them like oil have come back historically over the last seven or eight years it's still on the

low side how pricing pressures end up after the globe gets its traction back. joe, back to you >> stay there, if you would. not ordering you but steve liesman joins us now with more. hey, steve >> reporter: hey, joe, how are you? some fascinating numbers in here just real quick. there's one item that's going up in price and that's food and home, 1% i'm interested down the road, joe, when we do go back and i guess we're going back now and demand increase is supply able to meet that demand and do you have some turn around in some of these prices when people start buying stuff but let's talk about the more prevalent issue here, gasoline down 3.5 energy services down 0.5 some of the other items we're looking at apparel down 2.3 transportation services down 3.6. overall a pretty strong

deinflatid deflationary we hit a new record down 0.1%. very strong disinflationary impulse in the economy right now and we'll see if this becomes a deflationary impulse you hope thing settle down price wise as things come back but you'll have a couple of months of residual difference in the economy and that's a wide-open big green light for the fed to continue very easy monetary policy >> rick, i asked you to stay, comments on steve's interpretation of those numbers and the forecast >> reporter: well, i have one thing to add and i think steve is right there's more of a green light at this point with deflationary

issues for the economy and the fed. but does that light turn red when it becomes less so and that has been the rub with all these very aggressive fed actions whether it was in 2008 of the financial crisis or credit crisis or now obviously everybody looks towards the federal reserve because if you look towards the politicians you'll probably be sending you to bellevue if you think they are going figure any of these issues out with all the politics involved at threat of apolitical fact gets the green light from both parties, does what's necessary to help the economy, arguably maybe more than is necessary which isn't necessarily a bad thing when a shutdown is forced. but when things get better are they going be able to really pull it back this notion that things become subsidized, we become nose fwliend to these subsidies that's what i worry about. >> reporter: joe >> yes, steve. >> reporter: can i comment on that real quickly.

i need some guidance from you and rick when is the time to start worrying about the this? i'll tell you why. because the fed couldn't pull back a $4 trillion balance sheet. it tried to do so. there was a massive total in the markets. now you think it can pull back a $10 trillion balance sheet once it gets up there i don't know when the time to ask that question is or to start worrying about it and i just wonder it is in the market's mind that there is a day when they are going to have to stop and there may be a day they will have to pull it back unless we decide the fed will zbo 7-stay there and no issue >> what do you think, rick everybody is doing it. >> reporter: unfortunately the latter i can make a really good case that in 2011-2012 we should have pulled back a good deal of what we did in 2007, '08 and '09. but we didn't. we waited the until ten of 2015.

steve is right it's not that the fed doesn't recognize they can pull back it's whether they desire to do so and desire to shape things up after they went to great lengths to fix >> there are other things going on we never know if that's why. certainly at least correlated if not caused by that i don't know the big balance sheet now. we talked about that earlier why worry about billions when you can worry about millions i don't know anyway all right. gentlemen thank you. coming up, some new numbers out from starbucks that stock is under pressure as a result details are next or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions.

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welcome back to "squawk box," everybody. we're getting some business updates from starbucks kate rogers joins us right now she has more on that front kate >> reporter: that's right. a lot of numbers out this morning. the biggest one here starbucks saying it has lost as much as

$3.2 billion in revenue during the fiscal inquired quarter during to the covid pandemic some other numbers in the u.s. currently 91% of stores were open at the end of may. comp store sales have improved they were down 63% in april to 43% declines in may. final week of may sales fell by 32%. that marks the sixth consecutive week of improvement. 90% of sales in the u.s. are mobile in q3 for the u.s. business company expects comps to decline by 40% to 45%. china, 99% of stores are now open comps fell 21% in may. down 14% in the final week of the month. 22% of orders were in mobile and in q3 starbucks is projecting comps to be down between 20% and 25% in china the company is announcing some

new store format changes say it will open up 300 new stars in fiscal 2020 down from an original projection ever opening up 600 stores. repositioning stores and blending store formats and ininclude the closure of up to 400 stores in the next 18 months that's in conjunction with the opening of a greater number of new and repositioned stores. the company also saying its vision for each large city is to have a mix of traditional cafes and pickup locations and the strategy aligns with customer preferences that have been accelerated to the covid pandemic and finally starbucks now sees adjusted full year's earnings between 55 and 95 cents per share for the fiscal year ending in september current consensus is estimated $1.37. back over to you guys. >> okay. thank you for that a lot of people will be focused on that news this morning.

meantime when we return, we know we're in a recession what's the next chapter in the winning investor's playbook. and take another look this morning at shares of tesla you're looking at that stock up over 5%. elon musk saying it's time to ramp up production of the company's commercial semi truck. check us out and listen to our podcast, squawk pod. get analysis and so much more. subscribe for free wherever you get your podcast stay tune. "squawk box" returns after this.

welcome back to "squawk box" tesla ceo elon musk saying it's time now kick the company's production of electric semi trucks into higher gear this company deals with a similarly named rival and that

stock closed in on $1,000 -- tesla closed in on $1,000 a share. phil lebeau joins us >> reporter: a source familiar with the northwestern alternati -- internal people intern j internal memo by musk. this memo, elon musk say yes it's time to move up production with the battery and power train being built in nevada. according to a source familiar with this memo, one quote from it says it is time to go all out and bring the tesla semi to volume production. it's been in limited production so far which allowed us to improve many aspects of the design not surprising we see or here from elon musk about bringing the semi to market given the ramp up in shares or explosion

of shares in nikolo. that stock has exploded. the ceo say they want to be leader when it comes to electric vehicles look at their market cap it briefly surpassed ford. nikola has no products, has no revenue and at this point they are going show their first design for a pickup truck a little bit later this month. that hasn't stopped investors from piling into this stock. the market gap just about to ford's level not quite there at this point speaking of ford today the company has finalized its agreement with volkswagen when it comes to the development of autonomous and electric vehicles volkswagen and ford and they first announced the plans to collaborate, form a partnership. this is not a merger, this is a partnership. what they will be doing is part nearing on electric and

commercial vehicles. by the time they are all done they hope to build or work together on the production of 8 million vehicles over the product portfolio lifeline over the next several years so a lot happening when it comes to electric vehicles we're going be talking about the this with ford ceo jim farley. you don't want to miss this exclusive. as soon as he's done he'll join us exclusively coming up in about half our on "squawk on the street". guys, back to you. thank you for that when we return we got jim cramer's first take on trading day ahead. he may have some comments. markets in top sectors to watch with morgan stanley's mike wilson the index hitting 10,000 for the first time ever. ay tuned, "squawk" returns after this

headquarters, jim cramer joins us this morning. jim, we've been talking every day about where the market is, if we are ahead of ourselves, if we are not anticipating some of the things to come we just got those numbers from starbucks and there were some pretty interesting take a ways from it. i think of them opening up in china and feeling like things are back to normal from what we heard at least in beijing and getting back to some level of normal when you hear the starbucks numbers about how much they are down in their same store sales for the month of may it starts to make you realize, okay, people are not back in their normal habits, stuff like starbucks when you are going to work and in that normal habit how many of us have kicked that habit in the months we've been

home. >> going back and forth with kevin johnson the ceo this morning, talking about pulling forward plans to transform the store portfolio and says we also provide a prime minister earnings per share equipment for the balance of fiscal year 2021 which is directionally consistent with the expectations we outline on our earnings call. i'm trying to go back and forth with him to get what directionally consistent means i know that there were some previous misinterpretation of his -- m soft of the things that he put out there's so many moving parts here, but i hear you i thought that china would have been better by now, china is down, at the same time i wonder whether i heard right the first time because kevin is a straight shooter and i do feel like that he's trying to say, listen, jim, there's really nothing new here. so i'm wary, i know the stock is down, it's been a good stock of late, but, yeah, i agree with you, i mean, we are not back -- some of china is back for some different aspects of -- of their

businesses, but i think most of it is online that's back and that's important for what happens with us. >> yeah, i mean, we have had so many conversations about this, about how the report for the jobs number was better than anticipated, we spoke with senator shaheen earlier this morning and the plans she's bringing forward to try to support small business owners for longer it's a proposal that they just put out this morning i just wonder if you're going to have that same bipartisan support to do some of these programs particularly as different states have different experiences in terms of where they are, in terms of opening up and how many cases they're seeing or not. >> it's so important there was a note this morning about chili's numbers coming back, i was thinking about individual restaurants versus chains and how much leg up chains have versus the individuals. listening to ray mcguire and i'm thinking how many minority businesses are going to be -- storefront open and anyone can

go in, but who has the money to go well, a starbucks does, maybe a chili's does, they can pay the rent a lot of the landlords are saying who can pay the rent and they are not going to be happy with individual proprietors because once the ppp money runs out maybe the companies can't pay the rent this is very much of a divisive issue in our country and we are not looking at it like that because we don't realize what it's going to be like when that ppp money ends to 4 million businesses, i think it's going to be the time for the big chains, they can pay the rent, they get the space >> jim, thank you. we will hear more from you in a few minutes. it's good to see you this morning. >> good to see you. futures are up about 60 and change this morning. let's get to mike wilson, he is morgan stanley chief u.s. equity strategist mike, we have talked a lot recently and for a while i thought, wow, you were two bearish because you were kind of looking for a recession and then

the covid thing came in and you said it's not just about covid, that the market was stretched, the economy is stretched and this was almost eye leave yated some of your concerns and you got real bullish especially from where the markets were down in the low 2,000s for the s&p and you gave us a bull case of 3250 on the s&p, a base case of 3,000 and a bear case of 2,500 and here we are let's just round it -- the s&p at 3,200 is that a year-end target for you or going out a year? >> yeah, that's a year-end target, joe. all of those so we are approaching kind of that bull case scenario, probably even a little faster than we expected, but here we are. so we're not going to argue that it's wrong, in fact, the reason we're here is a lot of the reasons that we were suggesting, not all of them, and i think, look, i think people are getting a little bit more comfortable that we are going to have a

reopening, that we can get back to normal. not immediately as jim was just saying, it's going to take some time and there are some question marks around whether or not we can extend the fiscal, you know, policy that has already been implemented. i think they will. and, look, there's going to be some back end filling here, but, no, i think we are on track. i'm starting to lean towards probably higher numbers for the end of the year if we can get through this summer, we can get the extension on the fiscal package, we can kind of calm down some of these u.s./china trade relations which are percolating at the moment and we can actually see a reopening without a huge spike in cases. those are big if's, but if those things were to happen those targets might have to go up for year-end. >> if your base is 3,000 i was just wondering whether you think it's time to lighten up. it doesn't sound like it it sounds like you might actually be having numbers that might be a little bit above that if things play out you are thinking that within the markets that cyclic alt and

cyclic als might be a place to shift am of sis, right >> that's right, joe the market i would say at the index level is fully valued right now. i don't think there's a ton of upside in the near term at the index level, but what's more interesting to us is this rotation that's going on so let's just -- i mean, let's talk about what's happened we are in a recession, obviously everybody knows that and we are going to have a recovery it looks like the trough of the recession was probably the month of april because it was so steep and let's just remind ourselves, you know, bear markets end with recessions that's what happened and that's why we got more bullish. if you think about, you know, kind of what's gone on since then, we've gotten more visibility on policy, gotten more visibility on kind of the reopening and i think those are all supportive factors but the cyclic alt is what's underpriced meaning we still have this huge divergence late cycle, defensive oriented which

i would include growth socks and the early cycle cyclicals are cheap. people haven't embraced this at the stock or sector level. that's what's been going on the last couple weeks and that's probably going to persist. >> i wonder what 2021 looks like you guys never get to rest you get one year-end target and sooner or later that year ends and then you have to have the next year-end target it seems like you just said, i think, the overall averages may be fully valued or we're going to be looking for some backing and filling. do you foresee good economic growth in 2021 will we get back to something close to normal? will the underlying earnings catch up to the s&p and where multiples aren't stretched next year and it's more supported by the underlying earnings, do you think, mike? >> well, that's exactly what we see, but i think that's also exactly what the market sees

that's why we're trading at 3200 because the market now is making the bet or the viewpoint that mid 2021 is definitely going to be better and the request he is how much better and can it sustain into 2022. so this year's market is basically looking forward to 2021 and we've started to have a more positive outlook. >> let's go to 2022, then. will we get a 10% ever again an s&p earnings gain from, i don't know, where are you for the s&p, 175 or something 200 coming some day? >> oh, i mean, definitely it's coming some day, the request he is will it be -- >> i don't know. i don't know if we're wearing masks and everybody has a quarter of the patrons they have had in the past, i don't know. >> i mean, i think, look, i think my view is that we are in a bull market again, cyclical bull market, secular bull market, we had our recession between the two cyclical bulls

and i am very much of the view we will get to 200 at some point. i don't think it will be in 2021 but it will be the outyears. i think the bigger request he to ask is what's the composition of the earnings going to look like, will it be narrow in some of these big platform companies or more broad across a bigger part of the economy including, for example, the banks and industrials and materials and some of these areas that have been left behind i think it's more the latter and i think that's a healthier environment for the equity market overall. >> he have with the fed talking today. it depends on how long they stay this easy, too as things get better you can't count on as much stimulus from the fed. we have to run now, mike we will check back in with you i have to say that was a good call from down in the low 2000s on the s&p here we are almost to your bull case >> thanks. >> we will see you final check on the markets, we will take a quick look we have the dow now in positive

territory, so that would be -- that would be seven out of eight if it were to close higher today. we'll see. nasdaq is very strong. that's it for us this morning. we can take a -- can we get everybody in usually we don't have time for that but i skipped the rest of the futures just so we could say see you tomorrow and thank you. >> bye-bye. >> see you you tomorrow. >> "squawk on the street" is coming up right now. ♪ good wednesday morning, welcome to "squawk on the street," i'm quintanilla with jim cramer live from separate locations, faber has the morning off. futures are climbing into the green after the dow's first drop in seven and the nasdaq's first inter day trip above 10 k. a lot of news today. a fed statement, a news conference this afternoon, corporate updates from starbucks, delta, yum, high profile down grades, oil 38, ten year 80 basis points,