it is 5:00 in a reopening new york and your "top five at 5:00" starts with a six. market sell-off. investors spooked by growing virus numbers. fed fact, keeping their foot on the gas pedal. no increase until 2022 that could be bad for the banks. apple and amazon first two stocks with $1.5 trillion market

cap. and flight path trouble. and amazon banning police use of facial recognition technology. it is a very busy thursday june 11 this is "worldwide exchange" here on cnbc >> good morning. i am brian sullivan. thank you for joining us on a very busy thursday and one that could be a tough day for investors. on the screen,down 635 points right now. some thinking the re-open rally may have been overdone and health data up in texas. texas is siege about 2% to 3% daily growth in cases. not that outline in the last

couple of weeks but a slight up tick there and other states like arizona. that has got people on edge. yield has been falling reversing a recent trend bonds will be sensitive. the fed yielding 6.69% we'll call it oil prices like stock futures are down this morning. not only any kind of growth concerns but you've got inventories growing. if virus cases do start to spike, we could see gasoline as many retreat rates will state low for years bank and financial stocks taking it on the chin wednesday the xlf down more than 3%. every single major bank stock did fall yesterday wells fargo down nearly 9% wells fargo, the biggest

mortgage holder may be surplanting boeing as the most important macro stock in the country. wells fargo down another 6% right now. wells, a name to watch speaking of boeing, that stock also down sharply this morning down 7.5%. you are seeing a trend and stocks that are sensitive to a reopening. sensitive to economic growth and getting out and getting on a plaend getting around. they are downright now along with the price of oil. similar story overseas the nikkei closing down 3% the hang seng off more than 2% off in the red across europe france, germany down 2% as welch as we said, health data and covid headlines could be a major factor for the month they have been and could remain so this morning, a new and potentially positive headline in the race to develop a treatment.

rahel ahead with that and some other stories as well. >> the chief scientist for eli lily says the company could have a drug to treat covid-19 by september. really if all goes well with the antibody therapies and the third treatment that could enter human trials in coming weeks and could beat a vaccine as a treatment for covid-19 if they prove effective. some good news there delta airlines issuing new debt to raise $1.25 billion. it expects second quarter revenue to drop 90% as capacity is down 85%. it hopes to stop losing cash by december it has raised money through

carolin c.a.r.e.s. and debt act. disney plans to reopen by july 17. we'll need reservation to enter as disney wants to limit capacity experiences such as parades which draw large crowds and meet and greets with characters will be suspended for the time being but some good news for disney lovers out there send it back to you. >> maybe listen as the father of a five-year-old that takes after his father, which means he returns around and yells a lot it is impossible to tell a five-year-old, hey, don't go over there because there is a pandemic they just want to hug everybody. >> i don't know that five-year-olds understand socially distancing. >> or maybe mine is just ignoring his father. thank you, rahel going to the reopening of

markets. back toback losing sessions. futures down 600 points. fed chair jay powell telling investors the recovery will take some time. >> we are not thinking about raising rates. we are not even thinking about thinking about raising rates what we are thinking about is providing support for this economy. we do think this is going to take some time >> joining us now is invesco global strategist. not going to make too much about 600 points down on the dow your in investors and clients are medium and long-term investors. but still, we are in a market that appears to be, if not prices to perfection or pretty close. what is your take on the fragility or the strength of the stock market right now >> i always thought this would

happen in three phases you get a retracement up i think i was surprised by how significant the retracement was. it seems like cases rising could be that negative catalyst. to your point, near-term volatility doesn't mean we want to be out of these markets the more important point is what point do we want to be in and how do we want to be positioned overcoming years we know interest rates will below indefinitely that should create an environment. near-term volatility was always likely to emerge >> listen. we've learned a lot about ourselves, about the world, about the surprise element of things like pandemic's we've also learned all the data all the time may not be our best

indicators right now we've plucked out all this stuff on open table and traffic. what are you and your team looking at to gauge what is going 0 on with the underlying economy? >> the first thing we look at is the seven-day moving average of the cases. you saw it compress in asia first. you saw it start to come down in italy. in the united states, it has t plateaued. you also look for signs of some inflation expectation starting to emerge and financial concerns easing we'll watch things like the dollar, credit spreads, the shape of the yield curve all has been improving to your point, there are things you can watch like the mobility index from apple you can watch google searches on unemployment and how to get benefits things like open table that are all going to give us real-time look in terms of how the economy

is doing it is a good sign for earnings those cases either plateaued or would suggest. those would be halting, which is why you see to your point the sensitive stocks not performing well these days. >> neither of us are doctors but we can track numbers as well i've tracked 15 states on a spread sheet the good news is new york new jersey numbers are down. texas and arizona up 2% and 3% perhaps air-conditioning and people coming back inside. you don't have to be a doctor to

look at numbers and say, okay, that's going up. if it does continue to tick up a little bit, what do we do? >> that is the type of stuff we are watching it was always going to be the issue. we know isolating and social distancing will work we've seen it. as americans think about reemerging, we've seen the cases pick up. what do you do as an investor in the near term, expect all that you would expect in that type of an environment stronger dollar, lower interest rates. remember what won during that environment were the true growth companies and positioning your portfolio to be exposed to your companies who p could take advantage and are well positioned who would do well in a halting recovery what was surprising to me was

the widening of breath to this rally to include the early si cyclicals and that probably got ahead of itself. the companies that were positioned will likely continue to do well in this environment >> brian, best to you and your family thank you for joining us on an important day. market down 600. when we come back, no industry has been hit as hard on the pandemic and lockdown as travel and leisure there is always longer term hope we have some names you might want to consider as we head to break, let's check some of this morning's biggest pre-market movers solidly in the red. there is a bull market somewhere all the time intuitive surgical is up look for the green where you can. we are back after this

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that's why, when every connection counts... you can count on us. welcome back hang on to your hats stock futures are down big the dow future down 600 points right now. you need to watch two sectors

today financials and energy. financials make up about 11% of the s&p 500. they were hit hard yesterday on concerns about low rates remember, they need the spreads. credit spreads, net interest margin to widen up if we stay low another two years as suggested, it will be harder and harder for banks and financials to make some money. also oil and energy slammed yesterday as well. two things you've got to watch in the red right now no sector knows more been the red and stock losses than travel and leisure. down 60 to 70% on real concerns on company's long-term survival. some of the virus data has been concerning in some states, investors are trying to look past the pandemic. carnival, royal caribbean,

norwegian, marriott, hilton all up norwegian the best performing stock on the s&p 500 joining us, our guest, patrick talking about a macro market that may have gotten ahead of itself did some of the names you cover get ahead of itself on your forria and optimism around the rebound and reopen >> absolutely. my space is right at the epicenter with the cruise lines. some stocks have doubled, if not more, which is quite surprising given that special cruise lines, the sailings continue to be delayed later and later this

year june they are going to sail. now august it keeps getting pushed back during this whole time, cruise lines are just hemorrhaging cash that is not a positive at least a near term for them >> what happens if they keep pushing it back? >> one, they keep burning cash and may need to go back to the public markets to raise cash the good news is, the public markets have been very accommodating to raise cash. it has been delooted equity or 12% interest rates but the markets have been reaccer receptive. and in a high-cost industry.

>> we are seeing a lot of names like norwegian you've also got the saudi investment fund take a big stake in carnival and other big players. we've got small and super huge players coming into these stocks if they had to pause cruises over the next few months, will they survive >> you'll be burning millions and millions throughout the month. more in around the 12% range if you value the etf on the cruise names, we would value those. >> we like to end a positive note any stocks in your universe that

are a good buy right now >> i'm going to give you two names here look across the greater travel universe, the demand, the green chutes we see are the drive-to domestic leisure there is no sector better exposed to that than surprisingly time share resorts. most are drive to, domestic. they are opening back up the two names would be number one maier yot and wyndhan vacations. best exposed green chutes we see. >> could be a tough day, been a tough year for the sector. appreciate you joining us. have a good one. coming up, companies are making bold promises about greater diversity but there is a

long, long way to go we'll talk about what is working and what's not and what needs to be done. stay focus on these markets. dow futures down 536 we are back right after this >> announcer: today's big number $130 billion that's how much of the paycheck protection program has not been loaned out yesterday a total of roughly530 ll $biion in small business aid has been dispersed since april. need better sleep?

try nature's bounty sleep3, a unique tri-layer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. only from nature's bounty. can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

try nature's bounty sleep3, professional or consultant a unique tri-layer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. only from nature's bounty. welcome back dow futures are down 531 if you want to find a little bright light we all do as the sun comes up. dow futures are 100 points off their lows they were down 630 points. something to watch, the price of oil on the slide you heard our guests talk about carnival pushing off. watch the health data and state growth trends. arizona, texas, south carolina

watch those states people get spooked, they might back up. dow futures off 500. today, amazon says it is banning the use of facial recognition software by police for one year as technology companies are facing pressure to respond to the killing of george floyd by a police officer in minneapolis. amazon said, quote, advocated that governments should put into place stronger regulations of ethical use of facial recognition technologies early this week, ibm said it was getting out of the facial recognition business all together corporate america continuing to pledge hundreds of millions to fight for social justice. adidas announcing it is upping donation to $120 million over four years coming after facing criticism

for its own lack of diversity. the announcement put it right between nike, sony, walmart and our parent company comcast were the largest donations to date. despite the recent push of change after decades of racial inequality has been lack luster at best. our guest this morning, pippa, an important topic look forward to reading your pierce the important question is this, we can throw money at the problem. that's a start what else can these companies do >> hey there, brian. good morning y that really gets to the heart of the issue. throwing money at the problem is not going to solve this systemic racism that exists across corporate america. we continue to see minorities

both women and ethnic racial minorities are underrepresented in top leadership positions in companies across america companies really need to act and put actionable initiatives behind their claims of promoting diversity and inclusion. rather than just making empty promises and blank statements, they need to reinstall programs and things like hiring practices, promotion panels and compensation packages. all of these things where the system has proven in the past to break down we've seen women and minorities are not promoted at the same rate as their white male colleagues each level needs to be examined for why this is happening in a greater push to reflect the nation at large. >> you and i have worked

together a lot talking about esg, opec. we talk about energy a lot together we focused so much on the e, environmental. maybe we forgot about the s, social how does that factor into this >> there really has been a huge emphasis on the e and how we can fix the climate crisis now in the wake of coronavirus and the protests sweeping across the nation people i've spoken to say the s and the g are going to become more important companies are going to be scrutinized on how they handle racial and gender issues going forward. at present, companies don't need to disclose this data. one of the share holder advocacy

groups pushing investors are demanding it, employees are handling it. in particular, millennials and gen z. they are really willing to fight for their values so that s and g is really important in the movement that saw record inflows of over $10 billion despite the pandemic taking hold in march >> quickly, some good news in this not only the right thing to do, it pays off. you've got data that companies that are more diverse, their boards do better >> exactly this should come as no surprise when you have diversity at the top and throughout the ranks,

you are exposing yourself to more thoughts and better decision making. the data shows if you have only one sub set of society making these decisions you are subject to group think and can stifle. looking at top 12% are likely to outperform their peers the data is there. it pays to diversify your ranks and have an inclusive corporate environment. >> pippa, thank you. important piece. i urge everybody to check it out. available now on cnbc.com. have a good day. coming up, a selloff under way. dow futures down 540 right now we'll talk about big drivers with the man who called the rally. what does he see now

check out some of the biggest dow losers right now in the pre-market there will be some boeing is off and raytheon, exxonmobil they are down. we are back after this you're good to go. i have to take care of my coworkers. that's how i am. i have a son, and he said, "one day i'm gonna be like you, i'm gonna help people." you're good to go, ma'am. i hope so. this is my passion. if i can take of everyone who is sick out there, i would do it in a heartbeat. can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

talk to your financial professional or consultant bbut what if you couldg do better than that? like adapt. discover. deliver, in new ways, to new customers. what if you could come back stronger? faster. better. at comcast business, we want to help you not just bounce back, but bounce forward.

and now, with one of our best offers ever, we're committed to helping you do just that. get a powerful and reliable internet and voice solution for only $29.95 a month for three months. call or go online today. breaking news. dow futures up more than 500 points let's bring in our favorite

guest. a man who doesn't get enough credit for calling recent market moves including the rally we had in the past couple of weeks. in may, he urged everybody to stay calm. sense then, the market has gone up great to have you back on. you've made some great calls this rally was one of them now we are stairing down the face of a 500-point day. one day does not a trend make, i know but are you seeing any cracks or fragility in this recent run we are having >> thank you for having me on the show and recognizing the hard work we've been doing here at piper sandler in the context of what have you done for me lately

typically coming off a major low like in march, we get the pull backs before the trend plays out. this is one of those short-term pull backs i brought in one chart a chart looking at s&p 500 where we like to look at the weekly basis. we made the 40-week average, made that the zero line and plotted around it. one of the things we saw that gave us confidence was the fact that we war trading about 25% below a 40-week moving average on the s&p500. that is something only happened five times since 1970. when you look at that chart, it's a v bottom. not a w, not an l.

it is a v bottom that's where you want to step up, take a shot and buy stocks >> that's only happened five times since 1970 how about this, we've only had four times where we've had a global pandemic in the last hundred years. 1918 to now. seeing concerns about watch out arizona, watch out texas, some of the virus data ticking up slowly >> absolutely. you get fear and greed those emotions don't change. you frame up the perspective of how oversold, overbought you every single time you've traded

between 20 to 25% below that in that advance up, you have moved anywhere between 15 and 20% above the 40-week moving average before the advance is over that would suggest the s&p would trade somewhere between 3,450 and 3,600. >> let's get some opportunity. to the point you are supposed to buy low and sell high or buy low and sell higher. to your picks. best buy what do you like in the charts of bby >> we are continuing to see a nice series of higher highs in that chart seeing a nice consistent recovery in the bottoms.

i like to find stocks poised to break out of the new highs and break ahead. that's what i like about the best buy >> the other one, trex one of two public companies in my home town where i went to high school. what do you like about the fake wood decking company did i render you speechless or can you hear me? what do you like about trex? >> i can hear you now. sorry about that i like the fact that it is a growth stock midcap name. you are continuing to see this as a stock continuing to make

new highs. it is a name continuing to play into this trend where we are seeing people remodelling, redoing decks and trex is clearly a key name in those things >> trex and best buy some drops are healthy and he's sticking by his high for the year always a pleasure. coming up, new data on the spalatn.f covid-19 cases and hoitizio health data is the data that matters we'll tell you more stick around ♪ it's only human to care for those we love. and also help light their way. it's why last year chevron invested over $10 billion to bring affordable, reliable, ever cleaner energy to america.

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can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

as states continue to reopen, the number of new cases or hospitalizations due covid-19 is starting to pick up meg terrell with some important data points and what may be driving this latest increase good morning >> it is really a tale of two parts of the country as we in the northeast are starting to come down. some cases are starting to see cas cases rise specifically, texas, florida and arizona. in texas, you can see cases have been rising.

also looking at the test positivity rate. to see if those ricses can be explained just by testing. telling us the hospitalizations data mean cases really are rising there after that reopen starting on the 30th looking at florida, people say some of this increase could be due to increased testing and an effort to do contact tracing you are seeing cases rise. their stay-at-home order expired may 4. in florida, tampa, clear water area is the second fastest place cases are doubling looking at arizona their stay-at-home order expired may 15 they are seeing a test positive rate of about 13% and increasing so a lot of people testing positive even as they are increasing testing

arizona accounted for 8% of the u.s. new cases on wednesday. the phoenix, mesa, scottsdale area showed the fastest growth with a doubling time of 16 days. as we are looking down at the county level for potential hot spots. some are using some interesting data that aren't case data necessarily but symptom data, doctors visit data, even facebook survey data about what people are feeling you can see on the county level, where the potential hot spots. the darker, the more people are reporting going to the doctor or googling for covid you can see dark spots in southern florida and arizona and some parts of texas. watching this closely but a lot of folks concerned about this. >> there is. a few things here.

there are some in wisconsin, iowa that are owe opened they are not having the spike. if we go back to the map, that is also a heat map areas where it is hot. weather indicators a buddy of mine at hopkins talked with me privately the enemy here might be air-conditioning open your window could become the new wash your hands. these are hot spots were people may be retreating back in doors to closed vent lags systems. >> yes the idea in some of these states, it's indoor season it's so hot. it is more than 100 degrees in arizona this week. the idea of air circulation and the fact that people are packed in doors and in the northeast,

people are going inside where people say ss safer thing to do vegas, being inside is where you would be right now >> exactly keep the window open and the breeze going health data is the economic data we are speaking of right now suggesting the u.s. economy will shrink central bank signaling it expects to keep the support for the year including rock bottom interest rates through 2022 with rates so low, the housing market could be the driver to lead the country out of recession the nations largest provider of digital risk and compliance.

the housing market in many areas has been read hot. particularly in the northeast. any sign of a slow down? >> good morning, brian thank you for having me. we have a different housing market than we had 10 years ago. looking at overall numbers $33 trillion is up over $10 trillion from 2012 home equity is up from 2010. housing market heading into this pandemic was at all-time highs from equities to strength to the consumer working with our servicers and lenders was an unbelievably strong market. also looking at the fact that all of these mortgages have gone into forbearance good news, about 32% of those that jumped into forbearance are

actually still paying their mortgage over the last decade, they've built up that home and equity and they value it and they are not just at the first opportunity not paying but continuing to stay into it to pay their mortgage when they come out of it, they may need to tap the equity to bridge the pandemic or the next year of their life and really value their houses overall, the housing market has never been stronger or structurally different we have much better ways to help consumers and reach out to borrowers. >> that is important financials took it on the chin you can make the argument that the most important stock right now would be wells fargo it is down big again this morning. the top two mortgage holder or originator in the united states. your data goes directly to companies like that.

you gave us a little good news are you seeing any signs that the mortgage payment situation may get worse or better in the coming months and quarters >> yes like i said, right now, it is getting better 32% are still paying it tells us they took it out as more of an insurance policy. they might have issues and might have things coming forward they are still paying. i think we've levelled off the forbearance. i think we've hit that peak and started to come down they've got systems and processes in place to make sure if they do need assistance will

be modern indication again, i look for strong housing going forward. i think we'll be up 1% next year i think it is very strong. >> very important data the biggest purchase we all make jeff, pleasure to get you on in-housing coming up, dow futures are down 508. coming up, markets have rallied back some stocks new ghhis. what do you do now we'll talk about that next (bling) see, incident resolved. how did you... gotta enjoy the small wins. you keep being you, derek.

keep being you. try nature's bounty sleep3, a unique tri-layer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. only from nature's bounty. okay, give it a try. between wisdom and curiosity, there's a bridge.

between ideas and inspiration, trauma and treatment. gained a couple of more pounds. that's good for the babies. between the moments that make us who we are, and keeping them safe, private and secure, there's webex. ♪ ♪ beautiful. the five companies with the most execs buying the most stock. data coming from insider score.com. the stock with the fifth most

insider buying this week is allegiant airlines the ceo did sell some the day before that. stock four, fossil at the beaten up retailer. stock under 500 million market cap. stock three is extreme networks. we are seeing insider buying there buying 844,000 shares. a new name at number two, resideo. we are seeing insiders buying there. stock with the most insider buying this week he said is cortexyne buying $3

million. we do it every week and here is why. the average gain of 25 or 30 or so stocks we've highlighted since we started doing this segment is a gain of 48% that is 25% more than the s&p 500 has gained the insiders have timed it well. pay attention to that data stock futures are down sharply. exactly 500 points as the nation tries to reopen. some data points and key indicators are pointing to signs of recovery. to our next guest, jeff, important day to have you on not going to make too much you can't go up every day anything in the reopen data that

has concerned you and your team in the last couple of days a few data points we have seen a second wave of the virus break out in sweden and iran the second wave is real. we have not seen a rise in mortality because of that. not because they are taking greater precaution we are seeing a greater hit to humanity it may mean people who were engaged in the economy and may see a greater shut down in that second wave. >> gosh, we had a guest on earlier saying carnival cruise lines are pushing back their plan and resalings if we start to see the signs of

reclosing or shutdown but delays what does that mean. the recovery is real the market is vulnerable the pull back may not mean retracing with the lows. we've seen cyclicals lead the market investors have reached the more optimistic outlook a pull back on the set back if this is the case and we get the set backs and the data that we may get back in the next few weeks in return to the lows. the bigger risk might be because they are investing in the wrong stocks they are looking to see from the old leaders of the last cycle

rather than new leaders that would come from the new cycle. >> it is like people just went back to what they were doing let's buy apple and microsoft. they are valued at $1.5 trillion. any unloved sectors. globally, emerging markets maybe haven't reflected some optimism down the road? >> i'm excited about the financial sector this has been left dead. maybe not seeing as much as load losses maybe returning the dividends. in recent weeks has led the market and will be the leader in terms of rotation and growth and

value. i think we are posed for that. that is an area that will look good as opposed to an area unloved. >> wells fargo down again. we'll have to watch it but we need your in sight good stuff thank you. that does it for "worldwide exchange." dow futures did come a bit off their lows i'm off tomorrow i'll see you monday. squawknd a the day pick up coverage next. be well. take care. see you soon for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information. talk to your financial professional or consultant bbut what if you couldg do better than that?

like adapt. discover. deliver, in new ways, to new customers. what if you could come back stronger? faster. better. at comcast business, we want to help you not just bounce back, but bounce forward. and now, with one of our best offers ever, we're committed to helping you do just that. get a powerful and reliable internet and voice solution for only $29.95 a month for three months. call or go online today.

[ scoffs ] are ythe weirdest. you make everyone around you crazy. people are normal then they hang out with you and then they're jack nicholson in "the shining". i'm gonna tell my mom you tried to drown me. it's an above ground pool! you're like eight feet tall! breaking news, stock futures are indicated lower in the third straight day of this pull back hours after the fed issued a dplumy out look for jobs and the

economy. travel and leisure take a hit. showing you the drop in airlines, cruise lines, hotels and gaming >> what will sports look like in the fall looking at changes being made to stadiums to get ready for the reopening, which a little is happening today in the golf world. thursday, june 11, 2020. "squawk box" begins right now. >> good morning, i'm becky quick with joe kernen and andrew ross sorkin futures are under quite a bit of pressure dow futures down 480 points. this would com