cautious at this point >> okay. mohammad el-erian always great to see you and get your perspective. we have been watching the markets and we are triple digits in the red you see the dow is down about 646 points joe and becky, great show. see you all tomorrow make sure you all join us tomorrow "squawk on the street" begins right now. welcome to "squawk on the street" i'm dan along with jim cramer as you look at futures right now, we are set up for a lower open after those volatile and down daze that ys that we had ts the end of last week significant decline on all the major averages as we head into a

new week, jim, with the focus once again on a resurgence of cases in certain parts of the country for the virus. concerns about china, as well. and then the overall as we, of course, know, expectations regarding the economy and what the impact may or may not be as a result of what i just mentioned. >> well, i think that it's always surprising to me as someone who i think lived through it like you do that people in some of these states did realize the level of contagion. i mean, this is one when you're in the room with someone who has it, you're going to get it if you touch someone who has it, you're going to get it i don't know, did people feel they were immune i think there was a sense that maybe new york was isolated. i don't think this will be like new york because i think they learned how to treat people. so, i think the big scare of the hospitals being overloaded will only be perhaps some

i mean, we had a war zone here in new york. i don't think that will happen there. the chinese situation, they do contact trace. they'll have that thing under control in five days the chinese, of course, live in a to talitarian society. they can afford to do contact tracing the way we would never do i think that this carry over, david, has to do with the fact that we need something positive to happen. maybe something positive from the white house. something positive beyond what larry kudlow said over the weekend. setting a very negative tone for some very high-profile stocks. >> yeah. we want to talk and continue the conversation that we've been having about the level of speculation in the market and whether it is really a result of this entrance from unexpectedly from retail investors, jim but back to sort of the matters at hand as we deal with them this morning you know, and we'll have meg

join us sortly to give us an update on arizona, texas, florida and the like good news is here in the new york area things have calmed down dramatically as we continue to move through a potential opening. we spoke to the treasury secretary on thursday and i ask them that follow up to carl's question would you consider closing the economy down again let's just for ptake a look at his answer. >> we can't shut down the economy again. if you shut down the economy, you'll create more damage and not just economic damage, but there are other areas and we've talked about this of medical problems and everything else that get put on hold i think it was very prudent what the president did. but i think we learned a lot >> all right, so, jim, we know

we're not going to shut down again. a lot or contact tracing and testing. we're not shutting down, again should the response in the market still to be a rise in cases or are the two not as closely related as we might think? >> we're starting to get there the surgeon general after initially thinking the message was not so good. mask and social distancing end this wait a second, jim, some cases that still come up you'll have a situation like china. but we have it within our selves to be disciplined enough it's just an outfit like costco starts a mask policy and costco's numbers shoot up. and other stores don't have that i think that's because there's kind of a live free or die aspect of our country and that second half of that seems to be a choice of people i don't think people realize maybe they don't have as many friends as i have who came down with this. you know, people who i regard as

tough people who are leveled by it people who died from it that i know and i think there was, look, very lucky down there and the luck has run out so, they have to take advantage of some of these things like masks, which have a bad reputation there and, frankly, the government didn't really back masks it's very difficult for them to figure out what was the right thing. but, david, it can be stopped. it just has to be stopped using those methods. >> no masks appear to be a very effective way to do that, of course and being outside, as we all know, and gathering outside greatly reduces the risk as opposed to being in an indoor area if somebody has it. as you just said on "squawk box" makes it likely that other people will. we know that continuously evolving data set we're working with in terms of what we do know or what we thought we knew that we no longer can believe in, jim specific now to parts of the market that we watched closely

let's talk travel and leisure. we watched airlines surge was it last tuesday i think i came on and talked about the fact that at that moment american airlines enterprise value, debt plus equity it's hard to imagine in this current scenario what is going on in china and what is going on here that there is going to be any resurgeance in international travel any time soon >> at least between the states you don't have to quarantine the quarantine is so ownerous that if you wanted to take a week off in the united states, your first week would be quarantine and then you go back. i think that's what is remarkable, david. your comments on american air rattled the people who started trading american air at 4:00 a.m. we know there is a new cohurt of people and you see american and

always the same as royal caribbean and carnival and it's american, southwest, gnus which is a little outfit that does cartoons and different short videos and apache those are the ones that trade. and i have made it my business to try to know those very well but we happen to have the expert we have phil lebeau. those people trading those should reinstate instead of going cord cutting and learn something. not all airlines are created equal. that's why you have phil lebeau. >> that's why we have phil lebeau that united will have $17 billion in liquidity by the end of september third quarter of 2020 mileage plus and a number of other significant things that will be able to draw on, jim how much does that matter?

come september, of course, the idea has been out there that the airlines potentially will have to be in a position to come back for more government aid. >> they will they owe a lot of money. i'm always concerned that the newer investors and i don't want to dwell on them, but they are, there are millions of them so, i think they should be talked about the newer investors, david, taught me something that you taught me years ago. i was a stock guy and you would say, have you looked at the credit side? have you looked at the credit side the credit side on hertz shows you have to think twice, but a lot of people who think, you know what, it's a roulette game. it's not a roulette game this is a game if you want to call it that of skill. and the skill means having an edge and the edge comes from the debt side >> yep listen, hurts ertz is one of thr remarkable situations we've seen in some time by the way, the number of companies that actually have once they declared bankruptcy

equity recovery value is fairly small. interestingly, american airlines which we were just talking about, jim i can remember tom horton back then they had a big equity recovery, if you recall. >> 2 bucks >> was it? i think it was more than that. >> general growth, david general growth kmart for eddie. >> for eddie lampert and general growth was one but an extraordinarily small club the vast majority of companies that go chapter 11 have no real equity recovery value. that is why we have been discussing hertz of late it is in a position now it trades $750 million of stock a day and why can't we sell equity and raise it for our selves and they go to the bankruptcy judge and everybody said yes why wouldn't the creditor say yes, of course >> we know handler

handler is a bright guy. look, this could be worth something. here's what i was thinking let's say he came out against it coming out against workers and a lot of people laid off come out against it and j&j has a vaccine and suddenly that thing is worth four. i think it's worth zero. but i think the people who own it are thinking it is double zero meaning the green and double zero is remarkable when it pays off, but not the odds on favorite >> no, it is not and it is a reflection, i think, of the level of speculation in this market. you're right listen, jeffrey is not talking about this, as you might imagine. they can't discuss it, jim but what i can tell you is that there is a belief out there if you can sell a billion dollars and then maybe you can sell another billion, well, pretty soon you're getting to a number where it's not inconceivable, at least, that you could reinstate

a going concern letter for this company because it will be solvent again. is that unlikely yes. >> you're right. >> it's unlikely right now the creditors are like, awesome. great. sell a billion dollars worth of stock and it makes us so much happier and it's going to be worthless for you. >> do you think, david, they're taking advantage of these new-found investors. >> do you think they're taking advantage of the millions of people who adopted us cord cutting which don't watch us, which i wish they did. other things to buy. i would buy southwest air. not right here >> there you could make -- jim, you know, i heard different things about this cohort and you are closer than i am you were following it and talking about robinhood for months, if not years, long before i was focused on it still not clear when it comes to hertz, for example, is it really this group

there may be a level of speculation that is also institutional and actually is a group of investors who are well knowing in terms of what's going on so, not completely clear to me that it's solely at the feet of those who are new entrance to this market choosing to do so on platforms like robinhood and the like and replace whatwas sport betting for them >> there are manymore other than robinhood and i don't want to taint them. i think robinhood does a good job. democracy in action, david but democracy can lead to some bad choices. i agree with you this isn't just young people investing. this is people saying, look, this pays off. this could be the next general growth properties. david, doesn't everyone want to be acman no >> that's a no no >> really. >> any of my children -- >> i don't know about that guy

>> buffett >> that seems better in a way. does to me anyway. yeah by the way, ackman just goes back to exactly what we were talking about the special purpose acquisitions everyone is doing one. i am surprised you haven't started one, you can't everyone >> the blank check aspect. >> that's the market it's like, okay, you never know. it could be the next coca-cola >> did a great job >> what did he build >> staging a new house, david. you'll love it >> i can't wait. i can't wait >> eli manning's house the one he rented. >> yeah. nice we've really got to go i know we'll get an update from

meg. a lot more "squawk on the street" coming right up. 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. ♪ yeah ♪

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new coronavirus infections are trending higher in a number of states across the south and west meg tirrell is following that closely and joining us with that

news on the growing u.s. haut spots is what we call them, meg. >> we do they're in the hottest parts of the country right now, david if you look overall at the national trends trending at 21,000 new cases per day over the last week. that is remaining essentially flat we reported about 21,000 yesterday down from 26,500 on saturday the northeast, of course, continues to come down as does the midwest but the south and the west are starting to show those massive upticks, this according to data from the covid tracking project the states of concern show upticks in case not just cases hospitalizations texas showing patients with covid and arizona showing 1,500 and north carolina showing a spike in hospitalizations up to 800. florida doesn't report current hospitalizations in the same way as these do, but it does show this big uptick in the number of

cases and its test positive rate has been increasing since may 17th now, up to more than 5% from just more than 2% last month now, the hot spots in the country. these are the metro areas with the fastest case doubling time, according to ever corps. phoenix continues to be the fastest growing area in the country with cases doubling every two weeks. tampa also seeing a quick growing number of cases, charlotte, north carolina, and austin, texas and central washington state, as well, which health officials flagged over the weekend as a concerning trend. guys, you are starting to hear from local officials that they're considering pausing their reopening plans or reinstituting shelter-in-place orders if we see them worsen including in new york city, even though the trends are going back in the right direction >> meg, i'm so glad you mentioned new york city because it does seem that governor cuomo is angry i know that when you walk around the city streets nobody thinks -- it is over

it has been beaten it is kind of remarkable the cavalier nature of what i see. and, look, i don't want things closing. two establishments one where we sell pizza to go and one where we sell margaritas to go but i think it looks like people think it's over and it's done and have a good time. does that jive with what the governor is thinking >> yeah. so, this discussion around potentially reinstating the shelter-in-place order was after the governor saw the crowding in the streets of new york city so then we checked are we seeing trends increase again, not yet cases are still coming down in the city the trends are going in the right direction, but, of course, a lag in these reports so, we'll watch that data closely to see if the coming together of people on the streets of new york does result in an increase in cases. >> meg, you and i do a lot of work in this segment off record and off camera

meg, i am getting a level of encouragement about both vaccine that three months ago would have been ridiculous. those who are selling stocks right now, meg, i really think they could because i think the science is coming together faster are you getting the same feeling? >> if you look at the progress that has been made since this began it is incredible i was moderating a panel at the new york academy of sciences on friday and one of the doctors was talking about if you got covid in march you're in a different situation than if you get covid now we have plasma and showing that it works and remdesivir and the benefit might be modest, but it is still something. our understanding of how to treat this disease is improving and the tools are getting better we are in human clinical trials in multiple vaccines so, the science is moving incredibly quickly and it will

continue to do so. >> meg, thank you for the updates. of course, something that's having an impact on the overall market at this point and clearly what we're watching closely. meg tirrell joining us we'll take a quick break and do a little mad dash when we get ready for that opening bell. nine minutes from now you can see, of course, we are set up for what will be a sharply lower open this morning in part on what meg was just talking abt. we have more "squawk on the street." that's why td ameritrade designed a first-of-its-kind, personalized education center. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now, you're binge learning. for a limited time, get up to $800 when you open and fund an account. call 866-300-9417

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all right. looks like we're going to open the week with stocks down rather sharply. of course, you could take a look at the s&p we're talking almost 60-point decline. at least seven minutes from now when we get started. a lot moresq "uawk on the street" right after this ♪

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welcome back to "squawk on the street" time for mad dash. me and jim here. carl has the day off what have you got? ge is going to replace an important executive. >> you know david joyce is going to be there for 40 years i had

no idea he had been in aviation for that long. an incredible amount of service and done a great job president and ceo of ge aviation john slatry comes in now, david, he's an outsider, all right. he also works in the lesser division 51 years old and i've got to tell you 15 years in aircraft financing could really help. this is a change someone from the outside and this division has been the crown jewel, obviously, because of all the problems with boeing it's been sold but i think this is an important change and this is a sign, once again, that larry culp stamping his brand on all of the different divisions. he did tell me this morning, business remains challenging that's the word he has been using. that is a consistent word. challenging. and how could it not be? i think going towards wind and away from that is occurring and

very much going to help larry, but, obviously, winds multiples. they just don't make that much money on wind but i think he's making his changes and doing his thing. there are not many people on wall street who want to get behind him right here but i think that's because of problems at boeing not necessarily problems with him. >> right like so many companies, of course, that came into this year with expectations that have differed dramatically. ge is amongst them, jim. dpoeg going to be a transition year one in which you're talking about growth that is off the table for ge >> that is what i was doing at the beginning of the year. i underestimated the problems with the 737 max i don't think anyone saw the 737 max on hold but obviously, also, covid. you had to be a visionary to see covid. >> yeah. that is true

>> i'm changing my life. do i have a 12-person party on tuesday night, social distancing but in new jersey, this was all outside. people outside and i always thought that would be enough but, no, people want to take it and say, oh, we can be outside we can go inside and sit next to each other no in the air conditioning in a restaurant has to be changed in order to make it so you don't get the droplets just talked to wynn and they really figured this out and is remarkably scientific outfit you have to be scientific to open up a restaurant >> no, you do. maybe it will be beneficial carrier the recent spin as businesses need to upgrade their ability to have air recirculating in an effective way. jim, back if i can to personnel changes. i think worth mentioning maryland, now, this was expected and planned but no longer going

to be ceo of lockheed and jim a guy we know pretty well from his time at american tower taking over >> jim, oh, my, i love jim he has win the stallward of the group. that's -- i think that's a remarkable hire. he has come on "mad money" many times and he's always presented a fantastic, absolutely fantastic let's just say rebuttal wow, what a great hire outside. >> yeah. they had -- >> i always call him james and they call him jim. >> he had been on the board since 2018 by the way, you saw the opening bells. here we go start trading, of course, for the week at the big board personal care and cosmetic group and over at the nasdaq online marketplace. one of your favorites, jim

>> five blocks from me and part of that cohort like shopify and even like ebay and these companies are being viewed as the new way to shop. facebook is also there with facebook shopping doing quite well and that stock has had a run but etsy is remarkable i have been on etsy to buy things for our bar that can't be getten conventionally. many people getting masks on it. josh silverman has done a fantastic job. >> he took over in a somewhat difficult situation a number of years back ask as you pointed out, many times, had a very strong road. >> let's say felt the profit should be distributed somewhat the way, remember, lennon wanted the government to have the means

of production but he wanted the workers. so, always have to distinguish those and it wasn't ice pick, david. >> it was. no, i visited. i actually visited, you know, went to frida and they used to spend some time together down there. >> did you develop a unibrow up there? >> no, i haven't, why? >> yeah. she had a fabulous unibrow >> oh, yeah. i'm sorry, yes, right. it's funny i forget his real name. >> lev bronstein i know that because i happened to be related. i was stopped on the street. >> you studied russian history in college and you somehow remember this stuffp. >> a woman staopped me on the

street and said, i know you, you're lennon's great gre great-gra great-grandson no, no, i'm not. you're related to lennon okay all right. i'm lennon can't live it down >> all right >> david, look at this market. what are those buyers doing? are they selling united airlines what are those people doing, those 4:00 a.m. traders? are they selling or are they buying >> i wonder, jim, if they're not revisiting your covid portfolio. netflix was up briefly, peleton is up and we're not talking about a lot here because a significant down draft overall with the s&p down over 2%. i did notice that, at least. maybe they'll come back to some of the stay-at-home names, jim >> many of them are in china

because you can't find a bicycle at any of the walmarts that i checked. >> your tweet of the picture of the empty racks. >> we have to get walmart on because of their new tie up with shopify. this is not the same walmart that you did your special on walmart tying up with shopify. the canadian outfit that is trying to put walmart out of business well, was. >> yeah, that is interesting >> i think shopify is fabulous >> you do. i know that. you've thought that for a long time >> well, for 500 points. i thought tesla was great for 500 points and people tell me i'm late people are such complainers. i need to know what these people are buying, david. they determine things. they're buying electronic arts why? because they think a electronic arts is in line to buy warner games.

>> crazy reports for sale by at&t unclear what that would be worth, although it could be a lot. frankly, i'm not familiar with that business, jim >> once asked how much it was worth and, david, he is, you know, he's a great american. >> great american. >> great american. >> i assume he still resides in the 50 states. >> can't you find him? you can find him >> people want to hear from jeff bukis. i don't know if people really want to hear from him. probably prefer to hear from the man who is running at&t right now. stock that is only down about 3% right now. down 24% for the year. jim, let's sort of reset things here with the s&p hanging on at

roughly 29.70 or so. >> am i bringing up 3m, which is, once again, issuing a release. saying things are worse than we thought and 3m is, this is no recovery david, no recovery what have we got here? total sales for may declined 20% year on year i think that's negative. organic local currency sales declined 21% again, i think that's suboptimal you may disagree 28% decline for transportation electronics. again, david, i find that not what i want if i was running that conglomerate. >> no. is there anything you take away from this on 3m that has a broader application? >> it's gdp. i mean, mike romans is a good executive, but the isis what happens. this is the gdp that we're faced with not just the china outbreak. it has to do, david, with the fact that there is not a lot of business going besides zoom

video. how is zoom video doing today? there you go always good to see that rally. that is the most covid of covid stocks rock star ceo. >> i know who he is. they still have their servers in china, right that's where their servers are >> david, nit-picker >> just asking >> always bring me down like that here's one how about -- >> wait, wait. let's just make sure that people understand on 3m what you are referring to they put out their sales information for the month of may and that's what we got that from, a press release. as you pointed out $ $2.2 billion and the question, of course, will continue to be what is the outlook overall, jim? and so many companies have suspended guidance as you might

expect >> what's interesting. there were two less days, two fewer days, excuse me. it is in line with what the analysts were expecting. i'm bringing it up because the gross domestic product of the world is not that strong and certain companies that can come back and apple because of the service revenue stream that stock was down 7 at quarter after 4:00 and now it's barely down we have to find out. maybe that's day trade dave >> on this whole story we are trying to follow and figure out how important and how influential is this new group of so-called day traders. you pointed out many of them may not be watching us we would encourage them. >> are they for real are we making more of it than we should >> no news of them no, millions of them

look, robinhood and this is not just robinhood they have probably 11 million people and you don't sign up for robinhood in order to be able to buy cds. these people maybe they are getting information that's kind of like a little binary. they like binary outcomes. but i do know that they are important because the institutions for the most part are just mock s&p funds. the big hedge funds come on and they're very, very negative and these guys are, they're gamblers to some degree but, david, there are many people who are gamblers in the stock market but refused to call themselves that. they call themselves investors or they're renters and i think to look down at these people is to lose them can't we stop losing them? we lost millions of people in 2001 because we ignored them 2007/2008. how about the flash crash. we've lost too many people how about educating these people and how about helping them

that's what i think our job should be. not ignoring them. helping them >> that is what you've dedicated yourself to doing. >> i have because these are good people and i don't want them to lose money. they don't want to lose money. it's not like they -- i mean, i'm not going with the lump. these are people who want to make money and they can be helped by our network. our network can help them at what they do and that's what we should do >> right to your point, though, jim, a larger question is to how much investing really does take place overall. we pointed out many times the average holding period of a mutual fund manager is not particularly long at this point. you know, when i started in this business when you did, when i started covering it and when you started in it, i mean, you put out your, i don't know, six-month numbers and then it was every month and then your weekly number and then daily number and then it became hour

to hour and minute to minute given your ability to actually understand and know exactly what was going on that way. it's hard to imagine going back. investing doesn't seem to take place as often as you might expect overall >> but a show at 4:00 a.m. that talks about what's moving because that's when the trading starts, i think would be very enlightening for these people. let's put it this way. if you listened to phil lebeau you would favor buying southwest over united. if you just decided to buy the airlines or airline etf, you'll get the good with the bad. so, we educate people that there are some that are better than others education is something that we must do more of. because we don't want these people to say, it's a sucker's game it doesn't have to be. a little bit of research, some watching of us will get you there. so, if we decide that they are the great unwatched and we don't want to deal with them, we're fools. and they're winners.

can't do it. >> all right well, speaking of one of the names that we followed closely no, you can't be we try not to be at the same time, when you watch people buying potentially a worthless stock as in hertz, maybe it won't be, maybe it will be recovery value. maybe the company will be successful in selling billions of dollars in shares and, therefore, then suddenly find itself in a position where it no longer is unable to meet the needs of its creditors maybe. but it does become distressing by the way, hertz barely down now. it had been looking down as much as 27. >> we'll get that deal done. in the meantime, what are they like today they being the gunners, moderna. we can go because they're going to be next with a vaccine. if meg was to do a piece right now about moderna nothing

happening and immediately switch it's the way they do it. we have to make it so that they know you can't do that they're not interchangeable. and this is not the cleveland browns going up against the pats it's not football. sorry to go -- >> football. no, that's all right football, basketball baseball >> likes arsenal coming up against manchester united. he still thinks that liverpool is going to win and they're going to have crowd noise there. crowd noise in the stands for premier. >> no crowds but the noise got it let's get to bob pisani and get a look at what is going on with the broader market, as well. bob? >> good morning, david happy monday, everybody. we're dealing with the fact that the dislocations may last longer than expected. in a sense, that's what we're dealing with europe still dealing with it the stock is down 1% and tough night overseas and nikkei down

3% three days of declines and hang seng down 2% here in the u.s. stocks down every day and transports are going to be down some of the consumer staples outperforming and transports are now in positive territory but most of the airlines are to the down side. so, we're dealing with all these disconnects out there between wall street and main street and also dealing as david referenced the retail institutional investors. you see the airlines down again today and, of course, hertz getting that permission to sell $500 million in stock barely down at this point that is that disconnect the retail institutional disconnect that we have been talking about. ual, remember, i watched it go from 20 to 50 and now what is it 32 or so in two weeks 20 to 50 to 32 the same with a lot of other stocks out there so you look at halliburton, for

example. energy $12 a few weeks ago and went to $16 and now back to $12. 12 to 16 to 12 in less than two weeks. that's not a fundamental thing, that's a speculative idea. so, remember what moves the markets. the buckets that we've been talking about for the last couple months. you can understand what the market does every day and if you look into how much influencing these various buckets. the last four or five days that is overbought understandably so. is the reopening going well or not. we had outbreaks and a speed bump on the reopening story. on stimulus, rates low through 2022 and put a lot of pressure on congress this week for more stimulus so, yes, it's there, but they're going to need more treatment vaccine front still a lot there but i think that's still positive but you have three of the four buckets here that are under some pressure and that's what we're dealing with we're debating whether or not there really is a recovery,

there is it's the base of the recovery. what does that pace start to look like? if you're betting on the pace of the recovery you see the three phases february to march. we had the shut down fears in april and may, we had the reopening hopes and now we're doing a bit of a reevaluation. so, you know, i think it's pretty simple at this point. investors, david, are trying to extrapulate for an economic situation we've never seen before how many recessions since the depression 14, 15, 16 none of them have ever looked like this. we don't have any economic models to go on. we're getting a recovery, david. if we go back to 85% of that recovery, that's still a recession. that's what we're trying to figure out what is the pace of that recovery looking like? david, baic ck to you. >> it's not easy to do, as you point out. let's get to rick santelli and get a quick look at the bond market and see what it is reflecting this morning, too >> well, david, lots more buyers than sellers it continues to be what is

considered a little more safety now that the economic volatility has come back. if you look at the two day of tens what is fascinating here is that we are slipping under friday's lows. remember, friday was the day the equities made a bit of a comeback when i include a few more days and go down the curve for 30 for one week, you can clearly see the volatility in equities put big bids and big drops in the fixed income markets and especially sovereigns and 30-year bonds were down 22 basis points for the week. they're down about half a dozen basis points now and if you look overseas, same conditions exist for the boons month to date, they're hovering at the lowest yields of the month and, remember, they were in the mid 20s not that long ago. it has been a big, big rally in yields, rally in price finally, the dollar index. here's the three day of the dollar index three days ago it basically hit a three-month low.

that volatility in the equity markets was putting some safety bids in the dollar, as well. although that seems to have ebbed a little bit but still well above those levels under 96 from three sessions ago. jim and david, back to you >> rick, thank you rick santelli. we are off the lows ever so slightly on the s&p at the ispoint ai thi point we have more "squawk on the street" for you right after this

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unemployment benefits will not stop in august what may well stop in the reform is necessary, i mean, almost all businesses on both sides of the aisle understand the $600 plus up, above the state unemployment benefits they'll continue to receive is in effect a disincentive i mean, we're paying people not to work. t better than their salaries would get. that might have worked the first couple of months it will end in late july i think that returning to employment we are in the administration, the president is looking at a reform measure that will still provide some kind of bonus for returning to work. >> larry kudlow. of course, this weekend on cnn discussing the $600 bonus that

will expire at the end of july it doesn't sound like it's going to be reinstated you've been talking about it a bit. is it a disincentive to come back to work >> secretary mnuchin when i asked him about it said it's one of the moral hazards of trying to make it so struggliing americans can make it through the period i thought it was a statement from the heart and felt that it was right. larry didn't contradict him. he said it was something we needed is it a disincentive, as someone who has tried to hire people, the minimum wage is a disincentive the we can't pay what the government pays. we can't we can't afford it it will be interesting what i thought was great was the idea you get a bonus, people get a bonus if they find a job that would be terrific it's going to be hard to get a job and they have to think like that they really do

>> yeah. as we watch new york try to reopen, of course, jim, i want to talk to you at some point, i'm sure we will, what you're seeing in terms of your small businesses it's a very, very difficult environment. >> but we beat the virus, david. we beat it >> yeah. yeah >> we do have the s&p down about 1 .8 % let's get in a quick break and we're right back why bother mastering something? because when you want to create an entirely new feeling, the difference between excellence and mastery is all the difference in the world. the lexus es. a product of mastery. experience amazing at your lexus dealer. can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years?

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welcome back to "squawk on the street." time for stop trading. amd is the name. >> dave, remember when you used to stop and ask you what's the key of the market? >> yes i do >> amd is the key. spectacular piece today talking about how they only have a small relative market share in notebooks. they're coming on strong they have the best i think they have the best notebook chips winning business i believe with apple not in this, but david, the clients cpu business is so strong if amd starts moving up, i predict that particular cohort

we talked about will key on the stock and take up all the semis. yes, i think they're important because they're millions strong and we can either encourage them or thumb our nose. i'm going with encouragement with education >> continues to be one of your favorites, $62 billion -- >> you're from queens and you're a star my wife was a state champion in bicycling when she was 14 in queens and lisa sue is smarter than all of us and she's from queens. there you go >> yeah. there you go there you go i don't know if she's smarter than jensen wong >> jensen wong jensen wong is da vinci. >> what's coming up on "mad money" >> campbell's soup we'll find out if people have changed their buying pattern, and tom palmer i continue to believe everyone

should own cold. i have chub and newmont -- i don't really from chub, but that's my insurer but i have newmont. this was fun let's keep doing it. do we have to -- it ends >> no. no, it never ends. this goes on forever i mean, one day we'll be back in the same place, maybe 30 feet apart and then 20 or ten >> i know it's ten, but my wife loved that white sweater you threw on on friday >> the gray sweater. i went on the air on thursday. >> she said go on google and find one i said all right i'll ask david >> all right i'll see you tomorrow. everybody else will see you later. i'll watch you later too let's get started with the 10:00 hour over to sara >> hello good morning good monday morning. welcome to "squawk on the street." i'm sara eisen along with david faber and mike look at the markets. the selling continues. the worst week for stocks since

march and looking at a 2% decline for the dow. down 512 points. s&p taking a step back 1.5 %. the nasdaq down .8%. the market wanted to believe the v-shaped recovery story in the economy, and the rising case numbers in i think 20 u.s. states, the fact that saturday saw the surge of more than 23,000 case in one day is that what's getting in the way here of the fact that the economy could strongly rebound whether we shut down or not, that has to be an impact on consumer confidence. >> it gives pause i think for a market that went up 45% in nearly a straight line over the course of 10 or 11 weeks i think it filters into that estimate not so much of what are governments going to do. we've going to shut down gwen, but exactly how forceful the consumer comeback is going to be over the summer. the service economy. right now i have to say it remains a entha contained

pullback the lows and the overnight futures were bought this morning. nasdaq grinding its way to less than a 1% loss in the morning. we'll see how it plays out i think you had a combination of a market that almost everybody, bull and bear said we should pull off a bit the infection numbers were not open, even if they were a little bit open to interpretation >> david, it jives with the note of caution you've heard from big name investors and portfolio managers we've all been hearing through scratching our head at the ferociousness of the rally we saw more than 40% off the march lows the question is is this just a garden variety correction off the overshot levels, or is reality starting to sink in here that the economy and the virus path are still pretty uncertain? >> tlrt there were notes from me

as we watched the market up 40% from the low i would say this over and over again. i was having -- whether it's on air or off air, we were less positive they were -- >> david, i think you're breaking up a little bit we're going to actually pivot over to continue this market conversation with our panel right now. morgan stanley investment managers andrew and lee bakalsoe baker. andrew, is this simply a needed refreshing pullback in the stock market or has wall street run way ahead of the plausible fundamentals of how we're going to come back in the economy. >> reopening stocks have had huge rallies off the lows. they're up a lot and they're overbought, and i think that's where you're going to get the

pullback, but the reality is they're still down a lot from where they were in february. so i think you're going to shake out some of the weak holders the market will pull back. i think positioning has been too negative, and this will create an opportunity, especially the professional managers to get a little bit more aggressively positioned, the value stocks and that will put a floor in the pullback that's exactly what happened you go back to '09, the market rallied straight from march until june you had a pullback in june through july, and it gave people an opportunity to position in the things that worked off the low. it's classic post recession script, i think we're seeing >> sure. now, there's similar rhythms there. lee, i wonder if you're an investor who let's say was not right there when the market bottomed with an aggressive exposure to stocks and maybe you warm up later in the rally now you see the pullback where do you think the smart

move is in terms of reallocation at this stage? >> i think if you're looking at it from long-term perspective, now might be a good time to go and scoop up some of the quality stocks that have great potential when you look at it through a long-term lensz. we don't work with our clients on short-term trends, but i like the idea of picking up a delta at 22 a share. if you think at some point we'll go back to flying in airplanes again and you've got a long enough time, i think it's a great value. >> did you rethink that when someone like warren buffett sold out of his airline positions who is the ultimate long-term thinker, lee >> i didn't really rethink it. i wondered candidly like a lot of people. i think it was in february at that point he owned upwards of 12% of delta and 10% of other airlines it made me question it, but in his particular instance, if he'd just bought delta at 65 and

watched it drop below that, perhaps with his portfolio, it's an opportunity to do harvesting of losses against other gains. warren buffett is in a very different position than dare i say any of us. so it made me wonder, but if he thought it was enough of a value at 40, and again, with the thesis that hey, listen, things are going to pan out long-term, it didn't make me question it, and candidly, i bought more of it myself. >> huh andrew, what do you think about the airlines, andit's an interesting group to focus on. it has been a litmus test of this market of how investors are feeling on a given day about the reopening. and about the economic recovery. i mean, it used to be dollar yen. now it's the airlines. if they're sharply down, it's a down day are you buying? >> no. i think that's a great point, and i think or the cruise industry is a great analogy which is on the one hand the

stocks are up double or triple off the low. that seems insane they've come back this quickly. so people that are cautious are looking saying boy, this is way too much, too fast on the other hand, the stocks are still -- we got back to where they were in february, they would be up 100, 200% from the levels so it depends where your time frame is if your time frame is a year or two, yeah, they could be up a lot. but if your time frame is today, you're going i think this is crazy. >>. >> i want to drill in the harkening back to 2009 i see a lot of people pointing out resemblances in terms of the cadence and strength from march of this year to march of 2009. what do you say to folks who say in 2009, that was the end of two years of crisis and reckoning and a grinding recession

and you had rung out a lot of excess you're toward the end of a default cycle for corporate credit, not the beginning. how do you draw parallels of the underlying conditions if you do it all >> yeah. you know, so i don't necessarily agree with that point, because i see small caps i see value stocks they peaked long before february so there been a defensive rotation in the market that was in place well through 2019, and so i do think we're coming out of a recession yes, it felt very immediate for the market, but that's because the market is heavily weighted toward a few large cap tech stocks, and so, again, small caps outperforming large caps. cyclical stocks outperforming value. you have other indicators. copper outperforming gold. yield curve steepening all the trades have gotten a little overbought and we have to pull back.

>> lee, what do you tell your clients about what to do in fixed income in bonds whether it's for income or a ball last in a portfolio and you have initial yields quite low and things have rallied quite a bit? >> so at this stage of the game, when you're talking about fixed income, it's just there for balance. there's not a lot of income, if you will, to be gained from that and so you're looking for things that might diversify it with lower risk and so we have phone calls with managers and start to look at different types of alternatives that might be able to provide some yield and use it as a bit of a partial income replacement for the fixed income markets there's other interesting plays out there that are quite frankly i'd say very specific to this time period. i talked to one manager a couple weeks ago. they have an interesting take on real estate and specifically

small hotel reits to provide income so right now traditional fixed income, really looking at it from not an income perspective >> lee and drew, we'll leave it there. thank you for your time. >> thank you >> thank you when we come back, ceo of kayak joins us on the reopening process and how travel and dining out may never be the same, at least in 2020 stay with us as we see stocks falling broad based selloff. every sector in the s&p is lower led by energy and financials we'll be right back. 300 miles an hour, thats where i feel normal. having an annuity tells me my retirement is protected. protected lifetime income from an annuity can help your retirement plan ride out turbulent times. learn more at protectedincome.org.

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welcome back our next guest heads up to businesses heavily impacted by covid-19 kayak and open table ceo steve hafner joins us on what the future looks like for the two very important businesses steve, it's good to have you can i begin with the restaurant business because it's one that's dear to my heart as a patron and new york er. i've been hearing dire things from friends i know who do own some of those restaurants in terms of the reopening plans and just how many will not reopen what are you seeing broadly

speaking at open table and what are your expectations when it comes to the restaurant business and how many will be able to reopen >> sure. you're right the restaurant business is still in a pretty terrible strait. looking across the 60,000 restaurants we have on the open table platform, we expected and said so publicly that about a quarter of them would close and never reopen because of the new dynamics of operating safely that's something we're still expecting. but on the flip side, we've made our data publicly available. you can see how many people are dining at restaurants and we've seen a pretty good rebound in the number of people who want to dine out so last week reservations or seated diners at the restaurants that were open, which is about half the market was down only 78% versus last year two weeks ago that number was 100% down. so it's a pretty good leading

indicator of consumer interest in dining out again. >> anything showing up in the data and i know this is only recently we've looking at phoenix and miami, for example, where there's been a surge in cases, i should say any data that indicates whether things are moving now in the wrong direction there? >> well, look, i think everyone is watching case count closely the most important thing is the nation's safety and the safety of our citizens. and the impact of loosening of restrictions, cases are going up as testing capability goes up. but i think the most watched is what's happening with hospitalization. if you get sick, how well are you treated? are we overwhelming the hospital system so far all the indicators look good i think governors are proceeding and local municipalities the right way. let people dine out and travel again, and keep it careful on

what happens as a result >> what about kayak in terms of the reservation numbers? how far are they from normal >> kayak was hit harder than open table the restaurant, you stop dining. so you can maximum go down 100%. at kayak we were down 200% because people were booked and cancelled. today we released our data sets available to the public as well which we did a few weeks ago at open table we're seeing a rebound people are wanting to travel again. year over year query volumes are down 50% where people are willing to go are different. people are looking for nearby destinations car trips. our rental car business is bigger than our flight business. and where you're going is not the traditional hot spots like new york, paris or london.

you're going to places that haven't been hit hard by the virus that are outdoors and have beaches. think hawaii, florida, and if you're willing to travel internationally, think caribbean and mexico >> can you imagine either business open table and kayak ever really getting back to preco-vid levels and preco-vid behaviors without a vaccine? >> i think so, but it depends on what the path of co-vid looks like obviously a vaccine makes it a lot easier and restores consumer confidence we need to be able to have the tools to manage them the consumer demand for travel and dining is always going to be there. we foresee a pretty slow rebound on this, despite these encouragingen kards i was talking about. so we put out publicly we think it comes back in 2023 at 2019 levels but i don't think that's

depending on a virus it's depending on people feeling comfortable and that the safety measures at restaurants or airlines or other suppliers on the platforms are doing the right things but the customers and employees to keep them safe. >> steve, if 25% of restaurants close for good out of this, as you project, and as you say, longer-term, consumer demand to eat out is not necessarily going to go down, it would seem to feed the idea of the strong getting stronger and the big well capitalized chains taking up even more market shares that's something you see, and what would that mean for your business it seemed as if the open table business initially sort of benefitted from the fragmented nature of the market >> yeah. look, i think in any scenario like this you'll have winners and losers yes, the big change, the big cher airlines with the capacity to survive and then who can put in robust safety measures and can

afford the costs will benefit. but by the same token not everybody wants to eat in a big, crowded restaurant i think lots of smaller restaurants will -- nice outdoor venues on hospitality, i think airbnb shares numbers with the public people who want to rent out homes, entire homes outside of major metropolitan areas, those are doing well the marriotts are in one dimension. you'll see the homes on another side and the stuff in the middle is going to get squeezed. >> steve, you know, there's this school of thinking from economists right now that are wondering about this initial surge. it's great to see your numbers are up at kayak and open table and people are coming back but they're saying that it was always expected there was going to be an initial gee from the bottom because things fell so far down a cliff, and there was pent up demand and there are stimulus checks and extra

generous unemployment benefits but then what? can we expect the v to continue when some of the stimulus programs run into expiration dates and when businesses have to operate at reduced capacity how do you think about the return of business and how much longer we can continue to see that v go up >> yeah. look, your guess and everyone's guess is based on something we've never seen before in terms of this kind of data what we've seen so far is a strong rebound as i mentioned a little bit earlier we don't expect a full rebound until 2023 between, if we can keep co-vid in check, we'll see a pretty good recovery. with restaurants that do survive this are going to do good business they're being creative if you're walking around not new york obviously but they now have tents in parking lots. municipalities have closed streets. on the airline side, they're taking a lot of protective measures i was on a flight to miami on

saturday, and everyone in that plane was wearing a mask they spread everybody out. the boarding procedure was great. the cleanliness of the plane was amazing. la guardia, the new terminal is amazing. i think consumer confidence, if we keep this virus at bay, it will come back people want to dine out and they want to travel >> right steve, i'm looking forward to seeing that la guardia terminal myself you keep saying 2023 i have a keen sense for the obvious. that's a long time from now. in fact, two and a half years. do you need to have consolidation within your industry, for example, given that you're not going to be back to the levels you saw in 2019 until 2023 >> i don't think so. i mean, i think everyone is spaced from the airline companies to my parent company booking holdings has done a good

job cutting their discretionary costs to right sides so that when the business comes back, if it's as late as 2023, we're ready. if it comes back earlier, obviously everyone will prosper. it's not about consolidation the smaller players have left the industry or are in the final stages of leaving the industry and the folks remaining are well-positioned to survive and succeed. >> and finally, steve, i know for the first time in your history, rental cars are on the front page of kayak. how long is that going to continue, do you think >> you know, i started kayak i think 14 years ago i never thought we'd come to a day where rental cars is our home page. we're nimble if we see consumers looking for rental cars, we'll show them cars and we'll launch a road trip feature on kayak in a couple

weeks to take advantage of that. look, if consumers start coming back to flights the way our new data sets suggest, i hope that our flights school returns to its promised status of being the home page. because that's the bulk of the company, when it's healthy and the economy is healthy >> yeah. well, that's why we're going to watch it closely and certainly appreciate you updating us and making the data sets publicly available. steve, thank you >> thank you time for our etf spotlight today we're looking at energy. wti crude oil. down double digits from just a week ago down 2.8 right right now bp announces plans to take down a right down to $17.5 billion for the current quarter citing the pandemic the company lowering the oil expectations to an average of $55 a barrel from the year 2021 through 2050 forecasting a faster transition

away from fossil fuels today's move in crude pushing energy etfs lower across the board. xle 40% off the 52-week high there's a snapshot of the etfs down sharply we're off session lows but looking at broad selling after last week's pullback we'll be right back. ♪ ♪ ♪ ♪

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welcome back, everyone i'm sue herera this is your update at this hour in a civil rights decision the supreme court ruled civil rights laws protect gay, lesbian, and transgender workers from job discrimination the court decided by a 6-3 vote. go to cnbc.com for more on this. a russian court sentenced an american to 16 years in prison for spying paul wayland rejects the charges against him. mike pompeo says the u.s. is outraged by the conviction on sunday air travel in the u.s. hit a new high since the pandemic began the tsa said 544,000 people went

through the check points yesterday. that is a 23% increase since last sunday. and in england, nonessential stores reopened today for the first time since late march. large crowds were waiting online outside some shops despite health guidelines. other stores had orderly lines that respected social distancing everybody is trying to figure out how to reopen. sara, back to you. >> thank you black stone weighs in on the other side of the selloff. 'lbeig bk. - [narrator] the shark vacmop combines powerful suction with spray mopping to lock away debris and absorb wet messes, all in one disposable pad. just vacuum, spray mop, and toss.

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selloff with stocks in the red coming off the worst week in nearly three months. if you look at the selling it's groups like energy, banks, airlines cruise ships, retail, restaurants, a lot of the industries in the co-vid storms. airlines included. black stone's vice chairman of

solutions byron wien is with us. glad to have you what happened? did the market get to optimistic about the v-shaped recovery? >> i think the market thought we were going to come back very strong i think the first part of the recovery is going to be strong we've described it as a square root shaped recovery where the first part is a v, but it tapered off. still upward sloping but tapering off we think the market assumed three things one, the recovery was going to be v-shaped. two, there was going to be a vaccine by the end of the year, and three, that the government stimulus both fiscal and monetary was going to drive stocks endlessly higher. and i think those were all very favorable assumptions. i think this will be a gradual

recovery i think earnings will come back, but i think it will be 2022 before we're back to 2019 levels >> but isn't there -- byron there has been a lot of momentum on the scientific side toward a vaccine. i mean, even cautious doctors have said we could see approval before the end of the year, and when it comes to fiscal monetary stimulus, it's flowing how expect the recovery to peter out? >> on a vaccine, look, i think more work is being done on this vaccine than any vaccine ever before usually it takes 4 1/2 years to get a new vaccine. i think if you have one by the end of the year, if we develop one by the end of the year, that would be an historic achievement. but after you develop it, you've

got to test it and then you've got to figure out a way to manufacture it, and then you've got to administer it so i think it will be the end of next year before we really have it in the veins of most of the people in the united states. we may have it on the shelf before then, but before most people are immuned to the disease, it will be a while. and think about it how fast are you going to get on an airplane or go to a restaurant or travel i mean, there were 30 million people unemployed as a result of the covid-19 20 million will come back to work, but 10 million of them were working in businesses that aren't going to reopen or have gone bankrupt, and that's a lot of buying power that won't be there. in the 20 million that are back to work, they will be more

restrained in their buying habits and also, it will be hard for businesses to get back to full production you're seeing that already in the auto industry. so i think the economy will snap back quickly in this first phase of the recovery, but going beyond that is going to take a while. >> so what are the implications for the market what sort of moves would you be making within a portfolio to protect yourself against this square root-shaped recovery? >> well, i think you should not expect that we're headed straight up from here. the market you know, i have -- i think the market or the s&p 500 can earn $150, perhaps, in 2022. that's pretty close to where we

were, but it isn't quite there yet. and on that basis, i don't think it should be selling at 30 times earnings i think that the price earnings ratio, you'll quiet the market, it should have a defense i have character. my view is you should accept in and buy in this market, but you should stop in the distressed areas. energy hospitality, airlines, and housing. those areas, i think, are attractive but you should be buying the beaten down stocks, not the favorites. they're selling at all-time highs. >> byron, that sounds like a slight tilt away from your general mode of favoring growth and some of the long-term winners. is that purely about valuation or anything about this particular cycle that gets you in that direction? >> i'm glad you follow my work

so closely you're right i'm a growth stock investor, but i think the valuations of the favorite stocks like facebook and google and netflix and apple and amazon, i think those valuations are very full and so, therefore, i'm shopping among some of the distressed sectors. >> and then also i love your perspective on how this particular period might compare to those in the past of a lot of comparisoning out there to various other cycles whether they're major bull market touch points like march 2009 or just crash events like '87. does it feel familiar? is it useful to try to draw the analogies? >> well, they're similar in the sense that there were -- they were very depressed, and if we go back to march 23rd, you know,

that is similar to march 9th, 2009 but we're not there now. the s&p 500 has recovered a great -- you know, is back to where it was or was back to where it was at the beginning of the year and i think when it got there, people stepped back and said well, are we really where we were at the beginning of the year when we didn't have the worries about the coronavirus? and that's why we've had a selloff over the last few days i think investors are taking a very realistic view. they seem to be acting in accordance with the square root sign recovery i described at the beginning of the call. my view is they're apprehensive that after this first phase of strong economic numbers, it's going to be slower remember, 30 million people were

unemployed during the lockdown, and only 2.5 million are back to work more now, but i think that investors shouldn't assume that we're going to be back to where we were by the end of the year it's going to take longer than that to recover from the hit that we took during the lockdown >> yeah. byron, it's david. speaking of history, you know, we've also talked to you through the years about the national debt, the budget deficit you made the point a number of times that while it keeps going up, given where rates are, it actually is a percent of the overall budget stayed low because financing costs are so low. but i bring it up again. we have a budget deficit that could approach $3.7 trillion this fiscal year is it a concern?

should it be a continued or growing concern at all or because rates are near zero, it's simply not? >> look, david, we're operating on modern monetary theory. as long as we can print the money and somebody will buy our bond, we don't have to worry about it i think that's a very dangerous approach but the -- the fiscal and monetary policy is a survival policy we don't want the banking system or the financial system to melt down, and we don't want economic, the economic health of the country to deteriorate so we're employing fiscal and monetary tools in order to prevent those conditions from taking place without regard for the long-term implications of it because if we don't solve the short-term problem, there may not be any long-term i think we're probably doing the right thing now, and we'll

assess the implications, but i think there has to be a price to pay. one way or the other either in terms of inflation or higher rates, or both. but i don't see that over the near-term. i think right now the policy makers are thinking how do we get out of this mess and what do we have to do in order to keep the economy moving forward, and they're going to worry about the implications tomorrow in the scarlet o'hara "gone with the wind" sense >> and the backdrop to that that we've danced around relates to all of this, is we're going to have an election in a few months how do you think that is going to influence the markets >> well, i think if things do recover, people do go back to work, people start flying again,

people do go to restaurants, the hospitality portion of the economy begins to recover, the manufacturing part recovers, the service part continues to recover, i think even though it's going to be slower than the v-shaped heros think, i think the market will do well. i think we've made the lows for the cycle. i don't think we're going back to where we were on march 23rd in the market. but the question is when will we make a new all-time high my view is that's going to take a while. >> yeah. i guess i was wondering if you think the presidential election is going to present a new risk factor for the market? >> it will i mean, i don't know which way it's going to go if donald trump wins, i think people will assume it will be

more of the same he may be more friendly toward business than joe biden. if joe biden wins, particularly who his running mate is, i think we can expect higher taxes, a more progressive tax rate. i think we can expect an elimination of some capital gains preferences. and a change in regulation so i think the democrats may be less business friendly than the republicans. so i think who wins the november election will have an impact on the market >> surely we'll talk more about that over the coming months with you included byron, thank you for taking the time >> thanks for having me. >> briyron wien. >> outdoor dining begins today in new jersey. we'll speak to a new jersey

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on the heels of a volatile leap, one strategist says investors should prepare for even more wild moves more "squawk on the street" coming up. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50

instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow. welcome back we want to get to news on jeff bezos who is willing to testify

in front of a house committee investigating the power of large tech companies >> that's right. this is according to "the new york times" saying that amazon says jeff bezos is willing to testify before congress. previously when we had reached out to amazon, they refused to say whether he would so this is coming in the form of a letter that "the new york times" got ahold of. lawmakers requested that bezos testify as part of the anti-trust investigation into big tech and this essentially puts more pressure, more scrutiny on top of amazon facing a number of the inquiries and investigations reportedly in washington state as well as california state. and according to the journal, the european union is also planning to file anti-trust charges against the company at the crux of this matter is the treatment of third party merchants and competition with them amazon has a number of private label products and the argument is that amazon may be using the data from the third party

merchants to compete against them back to you. as you can see, shares are down about .8%. we haven't really heard him talk about these issues in public, have we? >> we have not bezos has certainly avoided testifying before congress they have said they would make the appropriate people available, but certainly it would be almost like this zuckerberg moment if we saw bezos actually testify and the kinds of questions he would get, there would be plenty of them and it would be heated >> yeah. absolutely thank you. later today on the "closing bell," zelman. a lot of video game makers beneficiaries as people have stayed home and gaming has been a strong stock the interview is in the 4 p.m. eastern hour of "closing bell. we also have larry kudlow today.

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welcome back to "squawk on the street." every s&p sector trading lower but one is communication services video game stocks continue their push higher. and take two interactive are among the few s&p 500 stocks holding their gains. other top sectors are media companies including netflix and discovery. twitter and facebook are also outperforming. "squawk on the street" returns

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welcome back, new jersey moving forward with phase two today. restaurants can now begin to open for outdoor dining. they own and operate over 20 restaurants all of which will begin to serve dine in customers today. jim frisk joins us now on "the path forward." how will today look? >> thanks for having me, it will be a little different. we opened up 15 locations last

week so we do have a little practice under our belts, and we'll start new jersey at 11:30 this morning >> what are the economics looking like for you right now given the fact that you have to have so much limited dining. >> the economics were desperate a week ago when we were topping at 20% of sales with just takeout. things are looking up this week. now we have 59% of sales with outdoor dining it's a good start. it won't get the job done forever, but it's a great start. what does the customer response seem to be were you at capacity for the straupts when the weather was nice

>> we were, we opened up on june 9th from 2:00 to 10:00 we have a lot of four season rs rooms that open to the outside with a roof. but the customer feels very, very content with the outdoors it is a little safer, i think they believe, and sitting outside in the beautiful weather, you could not ask for a better start >> jim, you have about 2500 employees at full capacity how many are you bringing back and are you having trouble, we hear some people are making more money with the unemployment and are reluctant to return to work. >> we have tremendous employees, there was no difficulty getting them back to work. our servers, our bartenders, they do very well.

we're a busy restaurant. if with the extra $of 00 in unemployment it may have been better for some people to stay home, but it really worked out well for us. >> what are your expectations when it comes to having people dine indoors when you get to that faze in pennsylvania and new jersey, and how are you planing to do it >> we were looking at about 506% when we got inside we could hit 70 with a little bit of luck. that would be glaet. after talking to others across the state and the country i think the outdoor dining, the safeness may not turn to the

same thing when you get outside. but changing everything around, being able to get all of the tables six feet apart, but if we can keep the outdoor dining, that should help also, and the other piece of the puzzle is there is still a lot of people getting takeout. we have still still at 50% of sales with takeout >> i guess people are required to wear masks coming in, and then they can take them off at the table. how do you enforce the rules >> the guests have been great. we changed it a little the at the front door we have a manager at the front door, and if the guest doesn't have a mask on when they come in, we very nicely ask them to go back and

get their mask and you really have to have it on until you're seated and then you have to put your mask back on or leave. but we can also provide them to anyone that forgot them. >> how do deal with employees that are sick and screening them it is high touch, they have to handle foods and plates. i assume you have to be pretty careful about it >> it is a little different from before it is half a dozen, any of those answers, you can't punch in, you have to get a manager right away so far our employees have been great. it is so nice to have them back.

we have been 90 days without them >> thank you and good luck today with the reopening in new jersey keep us posted >> looking at the market down about a percent. it is a prod sell off. morgan, it looks better an hour ago. good monday morning, earthquake to squawk alley. stocks are coming off of their worst week poised to start another week in the red, and the morning's loss is giving back all of june's gains. every sector in the s&p is in the red and of course front and center for investors right now is the fact that we are seeing

this increase in coronavirus cases and perhaps more worrisom is the hospitalizations as the economies around the country do continue to open up. to start off the our we're going to have a conversation brad. we want to get your thoughts on what we're seeing in terms of the market pull back right now >> sure, i think it is healthy i think it is a wide range of outcomes, still, not just aro d around i think it is healthy for the companies to do that there are still that are still