when the market was down 1,000 the fed planning to buy individual corporate bonds maybe hertz and the new report that president trump could propose a $1 trillion infrastructure and a story from ebay stalking scandal sending live cockroaches and a bloody pig mask. that's what it says here good morning, everybody. welcome to "squawk box" here on cnbc i'm becky quick along with joe kernen and andrew ross sorkin.

after yesterday's midsession rebound, the dow initially fell more than 750 points from the trading session before that striking turn around and finished higher more than 750 points s&p 500 went from more than down 1,500 and nasdaq went to close up by 1.4% these moves came after the fed said it would buy individual corporate bonds, not just the etf. president powell trading these today not only on what jay powell said but this idea that the administration will be looking for a $1 trillion package it just seems like the federal government is doing the best in their economy.

s&p indicated up by 41 and the nasdaq indicated up by 73. looks like this morning, the 10-year is yielding 7.43%. watching this stuff how it played out yesterday was kind of phenomenal i couldn't believe what we were watching at the close. >> it was quite unbelievable >> you are right houj part is the government stimulus >> unless that leaked out watching the market. it was down. i don't like mondays anyway. >> then i saw 400 and basically

unchanged. then i go, this is back down then it was up 250 and i was like what the heck i said what the something. then i looked and saw -- i started laughing why not. when do they start buying junk i want them to buy the hertz bonds which are 40 cents then can you sell the stock because you don't have any debt left >> it bogles the mind. if they are going to do this, they can do just about anything. look out just get out of the way.

>> did that happen earlier >> i think it said 11 minutes ago when i saw it. it had been up a little and then went down maybe 40 points. next time, it was up 250 when i looked and it said 11 minutes. >> it had been steadily climbing out of the negative place. looking at the chart, it had been steadily climbing then when powell said that, it went woosh up. then as the day went on and looking closely at these numbers. was it testing

>> it is the clearest look it is a complete game changer -- not if they start. they are well beyond starting. if they continue to do these kind of things we had never anticipated they might do. >> and if things are reopening and there is demand. the outside places in new jersey, you can't even get a table at the places. >> there are lines >> we are going to have dion from axe jios in a little bit. he's going to tell us that these companies are ready to go in terms of competing with each other in the new scenario. they areleaner and meaner,

they've got ideas. it may not just be about surviving. these companies have ideas these companies are in a position to flourish >> i'm afraid to say it. you can see no one can hear what anyone is saying anymore because of the mumble. >> that's the upside >> you are talking to someone and it is like, what did you say? you can't read lips anymore. >> did you see in the uk, there is a woman making masks with clear plastic cut outs for people with hearing disabilities or who are deaf are still able to figure things out >> love that >> have you seen the clear plastic masks they are wearing

in bars in, i think, norway. the big plastic ones you walk into a bar, everyone is wearing these things >> is that for clubbing? >> for clubbing. you can dance with their mask on >> i would have done a lot better, i think. clubbing with. >> higher success rate >> right >> i read the article about the nightclub capital of the world, very little going on >> i read that too berlin >> then it made sense to me. they've the tech music. >> now is the time that we dance. i looked up that same article because the headline was so good >> i thought it would be new york but i said, you know,

berlin makes sense we used to play techno music maybe he can sneak some in meantime, we were just talking about reports saying the trump administration drawing up that $1 trillion infrastructure plan focusing on projects and some funds would be required for 5g infrastructure. praum scheduled to discuss rural broad bant access on thursday. stock futures did pair some of their gains overnight after reports said north korea blue up a border town office used as a liaison with south korea south korea confirmed the report to nbc saying north korea

demolished the office by bombing. it was to stop activists from putting leaflets across the border and due to the u.s.-led sanctions. north kor-- eu opens an antitrut probe into apple play and app stores looking to new fines and restrictions for apple in europe the supreme court said yes workers cannot be fired for being guy or transgender written by judge kneel gorsuch the ruling will impact millions

that weren't protected by former policies especially at small and mid-size businesses. when we come back, a flood of pandemic-related stories from more hospitalizations in texas and action on hydroxychloroquine that's next. a new list of companies shaking up established industries. "squawk box" will be right back.

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lennar offering an up beat outlook saying business continued in may and continuing in june. we'll talk more about it with the company ceo at 7:30 a.m. eastern. little travel news u.s. airline passengers who refuse to wear facial coverings during flights could have flying privileges revoked carriers with the stricter policy include alaska, american, delta, ha yan, jetblue, southwest and united

failure to comply could lead up to putting on the no-fly list. guys given some of the fights i've seen inside targets and walmart in some shops and arguments we've seen on airplanes when it comes to air rage and whatnot, i hope they don't take place but i worry i worry. becky. >> i was trying to figure out who is missing from that list. it sounded like all the major airlines >> i think it is most. i think there are some smaller airlines, not necessarily the national carriers. but we'll see. >> what did we decide on the seat back. remember we led the show with that like three straight days when the guy was moving had is seat back. we want to go back to that, don't we those were our biggest problems.

>> right but what are you going to do if someone starts using their mask as a chinstrap and you turn around and say put your mask back on and the person says, i don't want to put it on. doesn't need to be spoken. >> in a small space right on top of each other. back to getting little kids to wear it. it would be concerning to try and travel with a toddler right now and convince them to wear it for the entire time. >> you don't wear it at home, right? >> you don't just always have it on, do you >> you don't see my plastic mask on as i'm wearing it right now no we do not wear it at home. >> tan lines >> i think some people maybe do wear them at home. >> the mask? >> i don't know. some of the tweaks you get if you even comply. people were yelling at me for

not wearing one here it is mack >> is mack wearing one >> he's not wearing one. he's eight feet, 10 feet away. no one else is here. i'm like bubble boy -- i can't bring up seinfeld anymore. seinfeld has been canceled we digress >> but it is back on peacock >> canceled culture. >> because of walking the fine line. >> they don't even walk it they jump over it and stay there. this is the new normal according to sources, jp morgan chase is planning to bring more traders back to the

headquarters in new york city on june 22. they plan to require masks in common areas and marking desks with colored stickers indicating where workers can sit. i've heard from other big banks that plan to do this my guess is that they'll be bringing back small portions of people and gradually easing it back through one of the big my indications is anywhere in the city or any major urban area is how do you get people there if they are not taking public transportation and that will determine how quickly these places can open up >> city planning to open up and provide transportation, so uber and the like i don't know if you can do that to scale it depends on how profitable your company is to be able to afford something like this a lot of conversations

>> do you feel comfortable with uber now a month ago, two months ago, you don't know how many rides the person has had who he's had contact with. as it is opening up and the infection rate goes down is it time are people using uber again? i wouldn't be thrilled, i don't think. >> if we all want to get back to work ultimately, if we all wore n-95 masks and sat in the back of uber, i think -- and i'm not a doctor, for a lot of people, i think that would be not risk free but reduce the risk it is a mask story coming up when we return, so much more on "squawk box." you have to hear this story. the wildest most bizarre thing happening with ebay. right now, the dow looks like it

would open up 522 points when we return, this alleged cyber stalking that cost six ebay employees their job it's a breaking story. we'll tell but it after the break. >> the defendants posted a classified ad of a couple inviting singles, couples and swingers to their house at 10:00 p.m. and encouraged to knock on the door any time day or night ♪ ♪ and right now, is a time for action. so, for a second time we're giving members a credit on their auto insurance. because it's the right thing to do.

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♪ ♪ welcome back time now for the executive edge and an unusual story six former ebay security officers have been charged with the fbi for cyber stocking using a strategy to intimidate a couple who run an online news letter that had been critical of

ebay they send a halloween mask of a dead pigs head and a book on surviving the loss of a spouse and a hustler magazine with the name of the couple on it and even sent a box of live cockroaches. then offered to help the victims and a move called the "white knight" strategy they were notified and fired the employees. they found no evidence the then ceodevin wenig knew about it and a number of discussions around his departure last year. it is a wild one, guys

a wild, wild story >> did you read the rest of it they posted this couple's phone number and said they were swingers and they would be up for trading spouses at any point. they called the pizza place and had them to deliver pizza at 4:30 a.m. to be paid on delivery it was insane. i cannot believe an actual company had that many people involved in it my jaw dropped they also sent live spiders to their house. >> i was trying to figure out live cockroaches or dead, which is worse the live i saw one. they move fast and come right at you and they are big at the beginning of the show, it said a bloody pig mask

it was a mask. >> they tried to send a pig fetus. they stopped it and said, we looked into this and we stopped this and we are helping them with this. they were trying to get them to say nice things about ebay but the things they came up with >> what pizza place is open -- >> how is that going to get you to say anything nice about anything >> can you get a pizza at4:30? >> delivered >> probably in new york city >> time square, you are probably in good shape there. >> i can't even get coffee, becky. you know that. >> starbucksisn't open >> 7:00, right 7:00 can't come fast enough coming up, where is gottlieb he needs some coffee come on, doctor.

glad you didn't have an operation scheduled. global coronavirus cases now topping 8 million. we'll get an update on a flood of news from dr. scott gottlieb. u.s. equities right now up 530 points we've passed the five handle after that big swing yesterday we have the s&p headed back up to like 3,100 after it was headed to 3,800. as we head to break, a look at yesterday's s&p 500 winners and losers as business moves forward, we're all changing the way things get done. like how we redefine collaboration... how we come up with new ways to serve our customers...

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good morning u.s. equity futures have improved we are up 540 points now on the dow. s&p indicated up 50. nasdaq indicated up 157 points an update now on the pandemic. global cases have now topped 8 million with 437,000 deaths. in the u.s., the case count is 2.1 million with 116,000 deaths. texas health authorities reported another record day of covid hospitalizations texas was one of the first states to relax the stay-at-home

order way back on may 30 other news in the coronavirus world right now, china reporting 40-new cases in beijing connected to a wholesale food market claiming it might have originated from salmon imports or packaging world health organization saying that is not the common hypothesis saying the handling of meat could interrupt and taking sentiment from consumers. we'll watch that. >> it is a conversation we had yesterday with eunice. also, andrew, fda making ne ne news hydroxychloroquine revoking the emergency use status warning taking it all together

especially with remdesivir saying hydroxychloroquine could weaken the effectiveness of remdesivir joining us now dr. scott gottlieb, cnbc contributor, he serves on the board of illumina and pfizer let's talk about the fda action against hydroxychloroquine >> they pulled the emergency use authorization which granted the use of the drug in hospital setting and collecting the information at the same time that drug was being used in those circumstances. mind you, this is a drug not available on the market but by pulling the emergency use authorization, it was acknowledged it no longer meets the statutory burden there has been a number of

studies now that have come out and haven't shown a benefit. a number of random studies under way. the fda might have gotten a look at the data and turned their hands. as well as the decision that it could interfere. it does work against coronavirus. the fact that it could interfere with the drug that has been otherwise effective, that could have tipped the agency's hand. >> how dangerous could it be or is this something we don't think is effective and the down side is that it could make something like remdesivir less ffective? >> that's basically the complex. the drug does have no side effects. in the setting where it is not delivering any benefit but only harm, it makes sense to have it

available and limit its use. especially in some patients with side effects where it could cause irregular all-stheartbeats against the back drop where they don't have evidence, that's enough to pull this. it no longer meets the legal burden of benefit in this setting. >> does that mean all the studies have been taking place will now end >> all of the studies people have been waiting for, if the drug has been causing a lot of harm and wasn't causing any benefit, they probably would have stopped those studies early. that doesn't mean those will start out positively those studies, i think wiare

almost done and i think they could have got an early look at the data that tipped their hand. >> let's go to the story eunice yoon talking about the chinese reaction which was to say, hey, this is a european strain, which i don't understand can you identify something and say it has been imported back to china from europe? second of all, they were saying it may be because of imported salmon either on the salmon or the packaging. does any of that make sense? >> it is possible based on the sequencing, they can tell where this came from looking at the sequencing it wouldn't surprise me that it came back to them. that's going to happen the idea that it hitched a ride on a fish is highly implausible, it is absurd if you remember back in wuhan,

they also traced that back to a fish market, specifically back to the fish section of that market it probably calls into question the fish handling practices more than it does the possibility that the virus is being carried in and out of the country on fish you may have an infected vendor spreading it i can't see any plausible scenario where this virus road in on salmon >> yeah, that seems crazy. there is already a blow back of chinese consumers who say they don't want to eat any of this stuff. you are somebody who follows the market closely what could this mean when you see a government start pointing fingers like that.

>> we dealt with some of these issues when i was at fda when you were concerned about meet product or products of produce coming from other parts of the country on poweultry and fish i don't know why after finding it on the cutting boards in the market and the problem of how these products are being handled. there is no way to say it came in on a fish it wouldn't infect a fish and couldn't live on the surface it is hard to believe it came in on u.s. salmon

>> european salmon is what they have said. the cases in texas there, how concerning is this >> it is concerning. also arizona, alabama, floor dau. the overall trend is favorable hospitalizations have been plot. we still have a lot of infection all over the place the overall trend isn't up a lot of states continue to go down there are states with bone tied outbreaks. i think texas is going to rethink some of the openings now. they are reopening restaurants up to 75 and 100%. they might hold off on that. now it is 100 degrees there, so it is hard to eat outside. they'll try to think back to the

sources. they still haven't found what the source of the spread is in cities like houston and austin >> thank you for your time this morning. when we come back, futures are indicated higher this morning. sharply higher the dow indicated up 540 points as the markets indicate a huge gain we'll talk strategy next here is a look at some of the biggest winners in the s&p 500 cruise lines and airlines leading the way. you can watch or listen to us live any time on the cnbc app. "squawk box" will be right back. - [narrator] the shark vacmop combines powerful suction

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sfroo strength in the futures coming after yesterday's wild ride the move of 900 points finishing up about 150 joining us now for more is liz young, director of market strategy from melon and axios market he had door, dion i was talking about you earlier dion i don't know if you were watching or your ears were burning. in your notes, i thought it was interesting that you are talking about companies getting ready to compete. not just getting ready to try to it may not be as great as

overall revenue. they want market share which could be positive in terms of operations is that right? >> looking at landscape and what is happening trying to get a bigger piece of a smaller pot. they are expecting to see increased and intense competition. >> trying to get a handle on what that means. sounds like layoffs companies

could do very well >> a large percent of companies are expecting layoffs. these are white collar layoffs i reported about a few weeks ago rather than the blue collar layoff wave we first saw that will be something to watch. >> liz, last time you were on, talking about 5 to 10% 30 or 40 is where we were. it looked like you were going to be right there for a while is that still your view? that too many things need to go right. have you changed that outlook

now things looked pretty nimble. >> you are right you have to be nimble and humble a few of those things have gone right. what the market was pricing in up until this minor pull back is a perfect recovery that is probably not going to come to fruition the other thing i want everybody to keep in mind is that we were starting from such a low base. it is starting to look like a v shape from the bottom no matter what the risk here is that we have a big wave that causes us to shout down and causes that v to look like a head fake the markets did get overextended 90% of the s&p 500 was trading

from over the average. we were due for a pull back. that made me feel better because it felt more rational. we would be watching like a hawk what this process looks like what of the challenges there is that we don't agree on how to do this we are seeing that as we have different results across different states >> do you think what we saw yesterday and are doing today has more to do with fed action and infrastructure or does it have to do with the way reopening is going and maybe we are not seeing but are ready to worry too much about reopening it is easy to say, my god, this is going to get out of hand again? does nobody embrace the

reopening? >> the market is right to worry about a second wave but there wasn't all that much new news yesterday about a second wave being a bigger risk. i think that yesterday, that turning point was more policy support and particularly on the debt side. that is the area we are watching to see where the stress could be if we have the fed on the market, that will drive the market activity and what the market is saying as far as the rally goes and liquidity goes and what dion mentioned, 30% of companies still plan to lay people off >> i want to go back to dion you wrote about how many zombie companies. they are sort of opposing forces these guys have to get leaner

and meaner a lot of them are getting aid where maybe they are not going to have to they can survive when maybe they shouldn't be surviving is this a problem because there are too many zombies >> the zombies have been a problem for a long time. as you see them growing, they are lowering growth for the u.s. from the macro perspective that is a big problem for everyone where they are reducing and overall less efficient the bigger problem right now is you want to get to reopening and as many people back to work as possible then to that next phase liz is talking about, then you worky

about these things it is going to be less efficient because there are so many zombie firms. i think you've got trillions of corporate debt already a record amount of ig debt, investment grade companies are levering up. that is a worry on the down side you want to get people back to work and making money. small business owners to pay their bills and so forth >> thank you we'll check back we have a couple weeks left here then we can worry about july anyway, thanks to you both andrew coming up when we return, more on squawk we'll unveil a new ranking of the best corporate citizens. this year's winner is a repeat

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welcome back to "squawk box. the 3bl media highlighted the list of esg winners. owens corning topping that list. this time for the second year in a row followed by citigroup, general mills, cisco and hewlett-packard, hp.

joining us is dave arman he's the ceo of 3bl media. good morning let's talk about this list there are a lot of folks who do various rankings prioritizing companies based on these things. the question i'd ask you, especially in this environment that we're living in today, is basically how much better is the performance of these companies as a result of the esg initiatives that they have undertaken >> good morning. thanks for having me on. these companies are highly engaged with esg and have been for years. there's actually 22 companies on our list this year this is the 21st year that we've done the list and 22 companies have been on it since 2009 and you don't get that kind of traction and consistency without support from the c suite and from the board

increasingly, the 100 best corporate citizens ranking has been, you know, referenced by companies in the quarterly earnings calls and annual reports and performance updates on the company because they know it performing well in esg, you know, is something that investors care about as well as their employees. that's a huge constituency from them and customers as well the way we put this list together is we look at the full russell 1,000 and then run that list through about 141 factors across environmental, social and governance and then, you know, its relative one company's rated against the other. last year owens corning won again, which is amazing for, you know, a construction products company out of toledo, ohio. the prior year it was microsoft and hasbro won the year before so it's always an exciting day when we announce the ranking >> the reap i ask though, david,

if i were to have bought your index, if you will, if i had done a weighted index based on the companies that you have selected over the past decade, call it, where would i be relative to the s&p 500 right now? >> well, it's not an etf and it's not a -- you know, it's not a fund we're really just doing this to try to drive corporate performance. the list is all about transparency and performance if companies have a policy, human rights policies, you know, that are in line with what we're looking for in the factors, they get, you know, a tick in the box. and so they strive to make sure that as we tweak the methodology year after year that they get on the list so all i can tell you is that i would invest in this ranking if it was an etf, and as we know esg funds are doing pretty well. >> right are you anticipating that given the challenges of our economy

today, in large part because of the pandemic, that you're going to see companies pull back on some of the esg commitments? obviously company we talk all the time about is delta, which committed a billion dollars over ten years, $100 million to bicarb bon offsets in an environment where they have a challenge business and industry where you want to keep your employees employed it's going to be hard to keep some of these commitments, no? >> yeah. this whole situation with the coronavirus is heartbreaking and what's happening to these companies is really challenging, especially in a sector like airlines or hotels but i can tell you that, you know, there have been some cutbacks certainly deep prioritization of nonstrategic spending in a lot of spending. you see that in marketing, dividend cuts, hiring but you're not seeing esg singled out as

one that's getting cut more than others i mean, we have a very stable business 3bl stands for triple bottom line, threebl media. we're in the business of having corporations get more awareness around their news and content around social responsibility and esg. we've had renewals continuing at a steady pace. delta is good for me -- >> we appreciate it -- >> i appreciate you taking the time to talk to us about it today. thank you. >> i appreciate it i'm sorry that we're on this delay. thank you and it's a fascinating list hope to keep up on it. dave, thank you. >> thanks. stay in touch. andrew, coming up, we're going to talk housing with the executive chairman of lenar and then a "squawk" exclusive with the ceo of wework. then georgia senator david perdue give us an update on the opening of his state head to break, here's a look at stock futures, up 524 pointso s

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for investment risks and information. a rally looks ready to resume futures surging after yesterday's incredible reversal

that saw the dow swing 900 points to end in the green we'll get the latest on the fed's plan to buy corporate bonds and the reaction. the chairman of lennar, stewart miller talks housing and the company's results. then we'll switch gears and talk commercial real estate with the ceo of wework. plus cnbc's disruptor 50 list is here the private companies whose innovations are changing industries and the way we live we will unveil the top names as the second hour of "squawk box" begins right now good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures at this hour we are pouring through in the green.

the dow will open up five points higher 145 points higher opening two and a half hours from now. joe? >> fed chair jay powell is beginning two days of capitol hill testimony today addressing the economy and fed policy he'll speak to the senate banking committee at 10 a.m. eastern. his appearance comes a day after the fed announced it would start buying individual corporate bonds for the first time ever. steve liesman joins us now with more on that unprecedented move and what to expect today it was ets before, steve drill down on how this actually would affect things in a substantial way, in a different way than what we already knew the fed was going to. >> reporter: you know, joe, it's not really anything new. a certain breathlessness to the reporting yesterday that i don't think was necessarily warranted.

the fed simply announced how it was doing. look, powell comes with a two-part message to congress dovish on policy but baeriearis the outlook. one is the outlook is uncertain. the downturn is severe and its effects could be felt for a long time to come two, the fed's going to do whatever it takes to combat the effects of the virus, including things like buying corporate bonds. three, the fed can't do it alone. it's going to require help from congress powell will announce it will do the corporate bond buying program. it already announced in the secondary market it said it was going to do this. the announcement did help turn around stocks even though it represents no new money. the fed simply announced it was doing what it said it was going to do but doing so according to an index that will be broader based than people expected retail sales coming in will show the first signs of reopening up

8% is the expectation compared to a 16% decline you'll do a little bit worse when you take out autos which apparently have done well. also gasoline station sales should rebound i'll be looking for whether or not consumers have done discretionary spending in sporting goods, hobbies, clothing things they have put off and see if there's any rebound in that finally goldman sachs out with a report that was pretty downbeat on the consumer and the economy suggesting wider unemployment that wasn't picked up in the may report and saying, quote, the bad news is that disposable income falls significantly in 2021 under our forecast. consumer spending could therefore pose a significant risk to the budding recovery in the quarters following the election and my guess is that powell embraces if not this particular forecast, then the risk embedded in this forecast he's all about uncertainty he's going to say the spigot is wide open to address it. joe, just another answer to your question, i don't see -- there

was no new money as part of it it was simply how they're going to do it sometimes the market just likes it when the fed follows through and announces it's going to start today buying the bonds that it said it was going to buy. >> becky >> steve, i will say there are a couple of things that surprised me about this. i guess the first is that if you had any doubt about whether they meant it when they said they would do anything, this should kind of strike that doubt out of your heart then second of all, are they doing this because there's just not enough of the etfs, they're spending so much money there's not enough etfs to be enough of that so they have to spread out? i guess there's emphasis in both of those points. just the breadth of what they're doing and what this really means and the idea that they are not going to back down if you had any doubts, you better get out of the way. that's my surprise on this >>becky, i've seen this before where the fed announces it's going to do something and then the market reacts once it does it you are always wondering what's priced into the market

the fed had always said it was going to buy etfs and individual bonds in the secondary market. maybe doing so according to the index that it's creating suggests a wider spread of purchases than it otherwise would, a more systematic approach, but it always had allocated a certain amount the three perks of the program of corporate bond buying, going to buy in the primary issuance market in other words, when the company first comes to market with it, hasn't opened that yet the secondary market where it said it would buy etfs and individual bonds the market maybe wanted a catalyst or something to turn it around to what might have been over sold conditions the fed provided it, but it was ultimately very close to what was expected and what it said it was going to do, and i expect in this crisis in every single instance unless there's a marked turn around in conditions for the better the fed to follow through on every single program

that it said it was going to do. >> let's continue this conversation joining us for more on this is bruce azner. he's managing director of global research and, bruce, correct me if i'm wrong, i believe jpmorgan actually raised its estimates yesterday. in europe and in china is that the case we have raised second quarter forecasts still very bad quarter. >> how much of that is because of the federal reserve and the federalgovernment kind of intervening on this? then how much of it is just because businesses are open and people are eager and willing to spend money? >> well, i think what we're seeing is the economy starting to come back in may. it's a consumer led movement back up. it's partly the opening up of the economy and it's partly the supports that have come from the fed and fiscal policy, of

course, that are starting to kick in. i think we had a horrible march and april and we're going to have a very significant bounce as we move into the summer months so we're seeing an enormous degree of volatility in this economy. our view is that we're going to only have a partial recovery but it's going to take a while here as we go through this very strong upturn to see what's actually happening >> you know, there are a lot of questions about what comes down the road there are so many companies that have signaled that they are going to be doing layoffs. there are other companies that said they won't do it this year but they're certainly leaving the door open for layoffs next year and you have the additional problem of any bad loans for businesses brian sullivan this morning on "worldwide exchange" had a very interesting conversation with frank partnoy who points out there's a huge clo market. the loans for businesses that are out there, there are a lot of concerns about businesses that won't be able to survive, particularly some of the smaller businesses that just didn't have the funds that could jack them

up to get them through an extended downturn. how do you try and gauge that and how does that come into your estimates for the economy? >> it's a really central part of the story. i think there's three pieces to why we can't get all the way back to normal one, we don't think the virus is going away and it will continue to weigh on behavior the second is this exact point, the consumers are getting huge income supports from fiscal policy corp rates are getting borrowing and their income losses are going to be substantial. they're not going to be reversed the borrowing is going to impede balance sheets going forward and corporate behavior is going to be a weight on the economy the final thing is there's a huge amount of fiscal supports coming through now we just don't think they're going to be sustained into 2021. the drag for that as it begins to roll off is going to slow the recovery >> steve >> thanks, becky yeah, bruce, it's nice to see you. i have a question on the corporate side is the fed, do you think, doing

what needs to be done here in terms of buying corporate bonds? do you have an issue at all with them going into the etf market, into the secondary market? this seems a little different from, you know, lending not necessarily a penalty price, but really just going in and buying bonds without a price signal in there. am i missing something as to is there a shutoff process for this are they going to go in there with what is it $750 billion, buy those bonds regardless of conditions because the market has improved so much. >> well, there's an issue of how much they need to do at this point, but i would say if we went back right over the last eight to ten weeks and we saw where the economy was and what was starting to unfold in markets, i think the fed intervention in credit markets, which as you say is really unprecedented, both in terms of purchasing credit, also in terms of the loan programs, has been a huge support for keeping markets functioning, for getting financial conditions easing,

for getting things going this is appropriate. you're right to ask questions of how far should it go and what does this intermediation of the fed and credit market going forward. i think dealing with the credit market was important and necessary and i think it's looking like it's been successful >> bruce, thank you for joining us it's good to see you steve, thank you >> thank you. >> reporter: see you at 8:30 on retail sales. >> sounds good andrew okay thanks, becky. coming up when we return, the fast-growing private companies transforming the economy and the business world we're going to reveal the eighth annual cnbc disruptor list we're going to do it after the break. something you don't want to miss. hertz warning new shareholders they could be wiped out. we're going to speak to former sec chairman harvey pitt whether they should be using equity rks raise capital

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for only $29.95 a month for three months. call or go online today. today we are unveiling our eighth annual disruptors companies. julia boorstin joins us with a

look at who made it onto the list. >> reporter: good morning to you, andrew. this year's list was drawn from more than 1300 nominees calculated based on a mix of quantitative and qualitative metrics with help from an advisory board of more than 50 leading academics from business schools around the world this year we included an extra round of assessment to take into account each company's response to the pandemic. here are the first five companies on this year's disruptor 50 list. >> number 5, clarna. the online payment company offers short-term credit to shoppers at more than 200,000 etailors it has become one of europe's largest banks. >> if we can give consumers a better offer, you know, i think we have accomplished something here. >> reporter: number four, coorsera the online learning pioneer. number three, indigo

agriculture. it pays farmers to enrich their soil with carbon and keep it out of the atmosphere. >> then over time as farmers change their practices we're actually reducing their footprint, in fact can even flip that away and making farming carbon positive. >> reporter: number two, coupang. reusable packaging and dawn delivery its promise to deliver by noon if ordered by midnight number one, stripe. the fin tech company is backed by all-star investors. the company committed to remote work more than a year ago hiring over 100 engineers at their home base so it's been able to handle

surging demand as all of its employees now work from home this year's disruptor 50 raised nearly $75 billion amassing a combined valuation of more than $277 billion you can find the whole list plus more about our methodology on cnbc.com/disruptors. andrew >> nice list quick question for you what are really the trends that you're seeing that emerged on this year's list relative to last year's list >> reporter: well, we saw more fintech than ever. there were 12 fintech companies, five of which focused on payments stripe the number one spot as we focus more and more on the trends accelerated by the pandemic, we saw health care and logistics. in terms of the underlying technology this year, huge emphasis on machine learning and artificial intelligence. more than half of the companies on the list said they used either ai or machine learning.

>> maybe a trickier question what about the issue of diversity? i ask because there's been so much focus on the lack of diversity in silicon valley. how does this list stack up this year >> reporter: well, this list really reflects the lack of funding to black ceos of silicon valley there's not a black ceo. 6 female ceos. we're seeing the trends of the lack of diversity in terms of funding in the bc world really reflected here now just to put that in perspective here, just 3% of bc funding goes to female ceos and less than 1% to black ceos if you dig back further to see what's driving those trends, it's really in large part attributed to lack of diversity in bc investors. 65% of bc firms don't have a single investor and 80% don't have a single black investor

so really a lot of questions happening right now about what we've done to improve the diversity among the vc community and also the type of communities that get funded. there have been a number of announcements, andrew. whether it's the companies addressing the underlying issues >> julia, thanks for the list. so much to hear about and to also fix and hopefully when we hear about this list next year and the years ahead those numbers will move in the right direction. we should tell our viewers that we're going to be hearing from the stripe ceo at the top of the hour in -- in the 8:00 hour. so next hour the stripe ceo. the company now worth i think about $36 billion, guys. we'll see when and if they go public becky? >> andrew, thank you. when we come back, should

regulators step in and stop hertz from offering shares to raise capital even after the company warned new investors could be wiped out former sec chairman harvey pitt goes on the record. lennar shares are higher after announcing results we'll speak with stuart miller check out the s&p index and the road back since the pandemic hit. you'll see it's a pretty steep climb since the lows in the middle of march. meantime, the futures are w dicated sharply higher doup by 474 points "squawk box" will be right back. 'g your range of choices. many dealers now offer optional pick-up & delivery and at-home maintenance, as well as online shopping with home delivery and special finance arrangements. so, whether you visit your local dealer or prefer the comfort of home you can count on the very highest level of service. get 0% apr financing up to 36 months on most models, and 90-day first-payment deferral on any model.

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gained a couple of more pounds. that's good for the babies. between the moments that make us who we are, indicated sharply higher there's webex. ♪ ♪ beautiful. 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. hertz warning potential

buyers at its common stock offering that it's almost certain that the equity will become worthless in an sec filing on monday hertz announced it would sell up to $500 million in stock following a bankruptcy judge's approval for hertz to sell up to 1 billion in common stock. joining us now with regulatory concerns that this raises, harvey pitt, ceo of global strategic partner and he serves as chairman of the sec under president bush harvey, this is not an accident that when securities laws were adopted congress specifically denied the sec the ability to judge investment the merits of a proposed securities offering, and they leave it in the hands of investors as to whether that's what they want to do. would you change that? do you think that should be changed or do you agree with it? >> no, i wouldn't change that.

i think in essence the worst thing we can have is the federal government deciding whether a particular company's securities have merit i think that's a bad idea. i think that's why congress rejected it in 1933 and why it has never been revisited at the federal level. >> i mean, how much more can hertz disclose the stock is most likely worthless and anyone that's buying it i guess has to assume that the debt is being mispriced right now, and that's certainly possible i don't know if you can see debt that's unsecured at 40 cents on the dollar being mispriced by, you know, more than -- it would have to more than double to get to par for there to be anything left over for the equity holder,

but i guess it's possible. >> in theory it might be possible, but the absolute priority rule makes it extremely unlikely and in essence what hertz is doing is it's offering or proposing to offer worthless securities this is being done because it's thought that you might be able to raise money from the public when it would cost far more to raise money from commercial lenders. that's not a great way to treat the investing public, but there seems to be an appetite on the part of certain investors to take short-term positions in bankrupt company stocks to try and make gains on intraday and

day-to-day fluctuations of the price. >> that's a greater fool theory and it's worked with hertz, at least in the last six weeks or whatever it is and we have seen that work, but it sounds like -- i mean, there used to be bucket shops that existed on wall street that their whole job was to sell things that were worthless to the public, and i don't see how this is that different and if the sec gets involved there, you basically said that hertz is trying to do the same thing, harvey. i don't see why they can wash their hands of responsibility to the individual investor. >> as an intellectual proposition, most securities oaks experts had thought you could offer garbage to sale to the public as long as you said we're offering you garbage and

you really shouldn't buy this, but you have a chance to buy it. no one ever really anticipated that people would be gullible enough to do that, but we're now in an environment where people are gambling on short-term movements in the stocks of bankrupt companies and as a result hertz is trying to capitalize on the potential for investors to try and make some quick profits on a day-to-day bas basis. so really this isn't securities investing, this is more akin to what goes on in las vegas. it's gambling. >> harvey, to the degree that you have qualms about this, and i recognize you don't think the government should step in, what about either the exchanges

themselves or the investment banks behind this? so you have the new york stock exchange in this case, should they allow this issuance i think you have kenny molus's firm around the loop on this jeffries is around this. are they responsible for this? >> well, they are. first, let me just make it clear that there are things the sec could do if you read the disclosures that the company makes, and they are fairly extensive about what might happen, but it creates the impression that there's really a potential chance that you might be able to recover something or more than something on your investment

so one thing that could be done is to fly the disclosure and make certain that it's far more aggressive than i think even hertz's disclosure is. secondly to your point, invanya shivashankarment banking firms have liability, and when they offer securities one of the issues that would come to bear is whether these investments are suitable to my way of thinking, an investment banking firm potentially runs the risk of effectively selling a litigation claim because at the end of the day if this operates the way it ought to, it's like musical

chairs and someone is going to be left without a seat if that happens, the investment bankers are going to be the first line of attack, i would say, since hertz is already in bankruptcy, there's not much more that could happen to them with respect to your other question about the exchanges, the new york stock exchange has already served notice that it intents to delist from your exchange ending it purely, hertz is still listed but what could happen is immediately after someone buys securities, these securities will be delisted. >> right. >> and what you have to do is really taking in the loss of all

of the money to buy the shares. >> harvey, thank you andrew, where were you in 1993 do you remember alexanders do you remember it >> yes yes. >> real estate worth a lot. i mean, i don't know what that stock -- people got so rich, and i am not saying -- this is not similar to that at all but i guess you can always point to that anyway, where were you in '93? you were a glimmer in someone's eye. >> i was in high school. >> you were in high school so you probably remember it. >> i was in high school. >> i remember shopping at alexander's? how about that >> i think you were calling ceos probably that weekend like you still o. great lineup of guests still to come lennar chairman stuart miller after the break. then exclusive interview with wework ceo

we'll ask him about the issues senator david perdue, the reopening, spike of cases in the south and the president's economic stimulus plans and maybe some new ones. and later national retail federation ceo matt shay check out the futures this morning. up about 477 we'll be right back.

home builder lennar with diana olick. >> shares of lennar are better

than expected quarterly earnings they said buyer demand came back in may and has tipped to improve this morning joining me now is stuart miller, former ceo of lennar thanks so much for being here. >> good morning, diana. >> reporter: good morning. now that was a quick turn around were you surprised at buyers coming back so quickly in may? do you think it will hold into the fall or was it a temporary bounce from all of that pent-up spring demand? >> well, it was a very quick turn around. in fact, we saw as the economy shut down, we saw real stall from mid march through the end of april but beginning really in the middle of april it accelerated, momentum built as we got to the end of may we saw that our sales, not just our closings but our sales had really normalized.

even as we've gone into june, into june we're continuing to see that strength. now as we look around the corner, there's no question that the economy is still -- it's still looking to get back on track and we're going to have to see what low unemployment does and whether it's sustainable into the fall, but for right now with low interest rates, the housing market is looking very strong >> reporter: now you said at the end of q1 just before the pandemic really kicked in and you saw those sales drop that you were going to pull back on construction as well as your land purchases given how light you are with land and potentially labor, are you able to meet this new surge in demand? >> well, there's no question that we did pause as the market stalled, we paused our land purchases, land development and our starts as well so we know that as we get to the fourth quarter we're going to have a little bit -- we'll be a

little bit short on our closing but nonetheless we rebooted pretty quickly as the market started showing signs of recovery in housing, starting in the beginning of april we started buying, we started developing, we started starting our homes. so i think that there will be a little bit of a pause in the numbers but it will come back very quickly >> reporter: now you've always been very focused on technology. how did you leverage that in the company when you had to move to virtual touring and distance selling? are people actually buying homes now that they've never been in >> so the answer is technology has been critical to almost everything we've done from the way that we manage our company all the way through to the way our buyers are purchasing from us the short answer to your question is, yes, we have customers that are buying homes that they haven't been in, especially people who are being transferred, moved to a new city we're definitely using

technology to take them on a tour where they can see floor plan layout on their phone, their computer from home, but certainly as the pandemic grew and people got more concerned about the personal interactions, we were able to facilitate people coming to our welcome home centers using a self-guided tour program where we give people a code to a lock and they're able to go through our models unattended. we've used every form of technology and as we've said before, we've been very technology focused and that head start in technology certainly worked to our benefit. >> reporter: i think becky's going to jump in with a question. >> diana, thanks stuart, just wondering i know it's hard to paint things with a broad brush, but where are buyers coming from have you seen people leaving the

cities or are these buyers coming from somewhere else >> well, look, it's hard to say whether the effects of the pandemic are going to be sustainable for years to come, but certainly in the immediate sense the stories are varied there's no question there are people fleeing the cities. there's no question the second home has been a place of refuge. there's no question people are rethinking whether they want to be in high rise rentals with common spaces as amenities versus having a home of their own with a backyard. so all of these narratives are playing out in the short term. some of them will be sticky. some of them will probably dissipate but the stories of our buyers coming in are varied. all of the narratives, we're still trying to see recovery. >> reporter: stewart, you recently started a build to rent platform do you think that's going to

benefit significantly for those who can't afford to buy the home but do want to get out of the urban areas and want to rent one of your homes? >> that's clearly playing out. it's not just build to rent, it's homes that have been purchased as rentals there are a number of companies that specialize this it's not just in the home for sale business, the home for rent business is also flourishing right now. we have built homes and we think all elements of dwellings and shelter are going to thrive in the current market you know we have a multi-family division we're also seeing strength in rentals for mid-rise apartments. it all plays back to the narrative that i've been talking about for a lot of years now, and that is there's been a production deficit in housing. we are shelter supply constrained and that supply con strapt means that all forms of shelter are going to thrive in the current market and probably

be sustainable for the next year or two >> stewart miller, chairman of lennar, thank you for joining us becky, back to you. >> thank you. when we come back, we have an exclusive interview with the ceo of wework. sandeep math ran any will be our guest. the company striking a deal to buy cobalt from glencore the swiss mining group will buy from the berlin facility as well that stock up 1.7% today the dow indicated upy ou babt 500 points "squawk box" will be right back. ever since we've gone mobile on the now platform,

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welcome back to "squawk box. futures right now up just under 500. been right around here for most of the premarket the s&p indicated up 44 and change and the nasdaq, 135 points take a look at some of the names this morning caterpillar is up roughly 6% two airlines are up on the move, leading gains in the s&p 500 american airlines and united airlines, up 8% a piece this morning. in fact, american airlines almost 9 shares of electronic arts up looking to add to that >> wow wow. coming up, an exclusive interview with the ceo of wework we'll discuss the future of the company and the ever changing commercial real estate landscape. what the office is going to look like as america reopens.

a new white paper with some pretty interesting data. we'll talk about it on the other side of the break when "squawk" returns. ♪ ♪ ♪

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welcome back to "squawk box. businesses are reopening for employees and phasing in as employees think about returning to the office, many questions arise about what this means for productivity, innovation, safety, commuting, so much more joining us is wework ceo sandeep

mathrani he's releasing a white paper about how employees especially in new york city think about all of this. it's great to have you on the program again, sandeep thank you for joining us before we get into some of the statistics and data that came out in the survey and paper that's been put together, i wanted to ask, as you're seeing the reopening, at least anecdotally, how many people are coming back into wework offices right now? >> good morning. the indicator, china opened about 60 days ago. it's almost at 100%. as united states open up, atlanta has opened up and other cities, miami, we are starting to see about 50% return to work in a short period of time. so we do think it may follow the same path which is about 60 to 80 days see it back to 80, 90%

>> what are you seeing in terms of rent? the last time we spoke to you wework collected 60% and wework was paying 80% of rents at the time you were in negotiation with the other landlords. where do things stand now? >> similar we continue to pay overwhelmingly a majority of our rents to our landlords the few that we haven't paid we're in amicable negotiations or we are just offsettingour rents against allowancesowed b the landlord on the landlord side we think we're in pretty good shape on the membership side, we're still collecting in april, may, june we've collected rent in the 70%. it's remained pretty consistent. >> right so let's get to some of this data we're showing it on the screen right now. 76% of those polled in new york city say they felt an office setting was important. that bodes well. at the same time i was

surprised, actually, that only 45% say that they were more productive in an office setting. what did you think of that >> again, it all determines how you define it, right there is a different statistic which says that effectively the millennials and the gen zs don't want to be the zoom generation more feel more connected in the office setting almost 60% say video calls take away from productivity so when you look at the statistic of 45% of the people say they are more productive coming into an office, it still is saying that you are a lot more productive coming to the office it doesn't mean we can't operate from the home. what it is saying is you want flexibility, which is the key word today if you think about it colleagues that we've interviewed essentially have said, you know, this he hey'd lo

work from home a day or two but the office setting is extremely important for collaboration. >> becky, i want to clarify one thing. i know becky has a question. colleagues say 45% feel less productive at home rather than 45% feel more productive at the office i wanted to make sure we made that clear becky? >> i just had a question as well when people said that they thought these zoom calls or other things made them less productive, i'd say that, too, but i'd say the same thing about meetings in the office how did you get at that? any of these meetings make you less productive if you're focused and trying to get your work done. was anything that got into the heart of that, sandeep >> yeah, becky all zoom calls are half an hour to an hour if you want to get something done, you schedule a call. it's not like i walk into the next person's office, five

minute discussion and we walk on we gather for five minutes, make a decision, have a meeting by the water cooler, you move on. everything is scheduled. so everything takes its entire allotted time. and that's what makes it sort of inefficient from working and configuring it initially this was very -- it was new. it worked. i think the month of april people felt, you know, you could work from home and as i think time has moved on and we've done these surveys every month, more and more we're finding people want the ability to come back but they want it to be on their terms. they want it to be flexible. >> well, that's what i wanted to ask you about, sandeep one of the other stats, especially in new york, which i thought was fascinating, relates to public transportation 70% said they wanted to be able to walk to work which would bode well for wework. people are thinking of distributed work force people going to various offices

but i would also imagine that undermines the idea of collaboration because i could see people go to an office and then effectively have to get on a zoom call, if you will, given that the entirety of the employee base or at least even a majority of the cases won't be at the satellite places. how are people thinking about that >> let's just rewind a little bit. i think, first, it's very important to bring new york city back new york city is $1.8 trillion gdp which is almost 9% of the united states gdp. so we did a lot of surveys on trying to figure out how the hub and spoke model work we have over 100 locations in new york city. it was determine as you just said, 70% want to walk to work we found that effectively in a wework location almost 1/3 of the office work force can walk to work if you add the one

second bike tour, it's 250 240urks peop,000 people why am i providing that data just add one more element. 96% of all people who live in manhattan can walk or bike to work in a 15-minute span at wework the reason it's important, it allows people to gather in groups, okay, that actually work together to come together. and they could be at times a few of them that actually do not sit together and those are far and few between, we find as we have organized our own organization in a hub and spoke model as we have the liberty to do that and as we bring our own people back to work, it will be distributed in four locations from the brooklyn navy yard to several locations in manhattan and what we're trying to do is to figure out how we can get the right groups who tend to work together and we actually found a lot of them actually live in similar neighborhoods. so it may not be as disparate as one thinks where you can be in a location which is a spoke and you will still be on a zoom

call it will be far and few between, co-exist, but i think you'll find more collaboration to occur in that manner >> sandeep, i know a lot of -- one major reason a lot of people do want to go to the office to try to get work done is oftentimes they have kids at home that raises an entire other question, which is to say do we believe that school is going to begin in earnest in a meaningful way in the fall? and with child care services and other things, would they be available? because that's sort of a major component of even getting our economy back on its feet. >> so, you know, obviously that goes back to the word flexibility. if both husband and wife are working, both spouses are working, then you actually have to figure out a way to share -- you know, to share and to divide and effectively i think we at wework are going to be very flexible understanding the needs

of our employees and so i think there is going to be some give and take, but there needs to be flexibility. i can't emphasize that word more there are no more hard rules if you really want to get people to come back to work and feel committed. i think you will find that people may come back to work if they have children at home for two or three days, one day -- you know one day one spouse, another day another spouse and, look, at the end of the day we are also helping at wework schools to get back. like in discussions with many of the schools in new york city to dedense phi t-densify the schoon go into our wework locations which fit well as classrooms they are -- the schools are going beyond just thinking about it in a structured way they are opening their minds of how to bring children back into schools. and i know, you know, in miami they basically have agreedto

bring all the schools back in august and they figured it out we're hoping new york can do it. >> sandeep, we have to run you said something new you're working with new york city schools public schools, private schools to do class in weworks >> as of right now it's the private schools. obviously we will extend that to discussions in public schools if we're able to have the conversation >> right see, adam neumann's original idea of having a wework school, it's all coming full circle, sandeep. thank you for joining us this morning. appreciate it very, very much. talk to you again soon wish you lots of luck. >> thanks so much. >> as we try to reopen appreciate it. you bet. becky? >> thank you. when we come back, senator david perdue on the reopening of the economy and new stimulus moves including the possibility of a trillion dollar infrastructure plan reportedly under construction at the white house. here are the futures at this hour looks like the dow is indicated up by about 550 points

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and your local community food bank. ♪ good morning futures surging. major indexes setting up for big gains at the open after yesterday's mid-day market turn around powering the rally this morning? a report that the trump administration is drawing up plans for a $1 trillion in infrastructure spending. we're going to bring you the latest details. and the number one disruptor, a rare and exclusive interview just ahead with the co-founder of stripe which tops this year's cnbc disruptor 50 list the final hour of "squawk box" begins right now.

good morning and welcome back to "squawk box" on cnbc i'm joe kernen along with andrews ross sorkin and becky quick. futures in the mid 5s. we're back to 540 points s&p indicated up 51. nasdaq up 157. if you do the lows yesterday premarket to where we are today, it's like 1500 points. don't get too complacent either way. >> 1600. >> yeah. you've got to be nimble. jack be nimble anyway, let's look at treasury yields which have also pitched in a little in terms of a higher yield.

.75% now on the 10-year. becky. we've got some breaking news from mcdonald's. kate rogers joins us with more on that front. kate, good morning. >> reporter: hi, becky good morning mcdonald's giving an update on the sales trends for the quarter to date. we'll take you through them. for the month of april u.s. same store sales fell by 19.2%. in may, they fell by 5.1%. quarter to date through may 31st, down 12% total they fell 39% in april, 20.9% in may and down nearly 30% quarter to date through may 31st 95% of u.s. restaurants are open comp sales have steadily improved but remain negative along with guest counts, particularly during breakfast. comps benefit from strong average check growth

reduced seating and 100 remain closed due to their locations, like those in shopping malls the company is expecting to invest $200 million through incremental marketing to drive growth and accelerate the recovery it's providing targeted support for 23r5franchisees based on individual needs and providing support for certain restaurants that are facing circumstances internationally. like other restaurants including starbucks, it seems that the brunt of these covid-related losses and the impact will be felt during this current quarter. andrew, back over to you >> okay. thank you, kate. we should tell you, i think i might be taking becky here, but don't miss mcdonald's ceo on "mad money" tonight. i want to show you the broader markets. futures surging this morning

helped by a trillion dollar infrastructure proposal. eamon javers joins us with the latest on that >> reporter: yeah, good morning, andrew the report is from bloomberg there are a lot of reasons to be skeptical of it. not the report itself that the white house wants to do it, but that this is going anyplace. first, let's start with the report itself. what bloomberg is reporting and the headline getting some attention today is the president wants to do a $1 trillion stimulus spending bill on infrastructure the measure would cover roads, bridges, also 5g access and things like rural broadband. a catchall infrastructure spend here the president is scheduled to discuss rural broadband access on thursday at the white house the timing for rolling something outdoes seem to make sense we'll wait and see what the president has to say but a couple of caveats to this. one is the president has long supported this sort of massive infrastructure spending.

he's been unable to get it done so far no reason to necessarily think that he will suddenly be able to get this done in the last couple of months of a presidential election the president has every reason to want to do more stimulus to get this economy back on track, to have big numbers coming out with his name attached to them but some of his own aides and allies are skeptical of more spending at this point, including some outside advisers like steven moore and art laffer who are growing concerned about the amount of deficit-backed spending by this government. so the idea that conservatives on capitol hill will join hands with nancy pelosi and pass this any time soon seem far fetch >> all right that whole thing surprised you, i think. oh, my god, i've got to go on. is there a tie anywhere?

i don't see one. oh, no, i'm on never mind is that what happened? i don't -- >> right i found the pants though, joe. that was the main thing. >> you found the little thing here you found -- you know, that's a good look. it almost -- you know, it looks like you're headed to one of those berlin nightclubs we were talking about. that is perfect attire. >> i missed the berlin nightclub conversation i've actually been to a berlin nightclub. it was -- it was not a good choice >> the nightclub or going in berlin supposedly that's the nightclub capital of the world >> reporter: going to the nightclub in berlin was not a good choice. i'm going to leave it there. >> you've got to text me something. i've got to know thanks thanks, eamon. georgia was one of the first states to allow businesses to reopen back in april today even as we have seen coronavirus cases rise in the south, more restrictions are being relaxed. those include removing limits on

party sizes at restaurants and movie theaters, a doubling of the number of people allowed at bars to 50 and allowing walk-ins at barber shops and hair salons. joining us to talk about the reopening process, georgia senator david perdue he's also the former ceo of both rebook and dollar general. it's good to see you, senator. how are you? great to see you thanks for joining us. >> good morning. >> the reopening was early it was somewhat controversial. then it was i think lauded and sort of pointed to as a way to do things where it might not -- there might not be any recriminations about it. we're always going to offset economic costs and health concerns i guess to some extent, senator. would you say it's going well in your state

>> it's going very well, joe good morning you know, we're following the president's three phase plan to reopen the economy we're doing it judiciously active cases are not rising in georgia. we've had no spikes in deaths or infections we're following a similar curve to other countries that are ahead of us in this environment. we're following protocols. i was on a plane from georgia to washington and most of the plane was full but they gave us a choice to get off the plane or to not take that flight. everybody uses masks so we're followingthe protocol that have been proven to work. our essential workers and military, those two communities have had less ip effection than the rest of us we know what to do and i think we're doing it judiciously. >> can other states learn from georgia? are you concerned about what's happening in texas or arizona, senator? >> it's all relative

if you look at the deaths per 100,000, we're way down from new jersey and new york. we've learned from the states that have had big spikes in both the death rate and infection rate yes. most people are adhering to this i've been out in restaurants, i've been flying since the senate is back in session. i've got a pretty good perspective of how things are happening in georgia right now people are adhering to the protocol we've reached out to, joe, almost 1 million people through these constituent conference calls at night it's been very enlightening in terms of people taking care of each other, add hearing to the protocols and paying attention to what the public health officials are telling them. >> what are we doing with stimulus half of it is 2.3 million. i don't want to put words in your mouth i think your feeling is enough has been earmarked already we are talking about additional stimulus, maybe infrastructure what are your thoughts on what we need to do since you do care

about business and getting business back to work as well. what more do we need >> business is coming. i mean, this is -- there's a lot of demand out there right now. i'm worried about our supply chains there's going to be a bumpy couple of months in my opinion the jobs report two weeks ago was encouraging, but we've got 2.9 trillion we've already appropriated only half is out working the ppp program got out very early and the average loan of the ppp program, guys, is $116,000 these are the smallest businesses in america getting this relief. i call it relief, not really a stimulus the next phase of this thing could be a bump up in ppp. we just saw the treasury is talking about the main street program is just getting started. i'd like to see the impact of this invest. we've decided to make before we decide to do something else. i applaud the president for wanting to do something more in infrastructure god knows we need it we need to get the economy going

first, get people back to work and get the economy moving again. >> becky >> senator, just in terms of getting people back to work, we have heard from businesses in some places who have not been able to get their employees to come back because they're making more money on unemployment also they have other issues, child care because they have to stay home or they have underlying issues and they can't come back because of coronavirus. there has been a lot of talk about how do we provide protections for people who can't? is there a sort of stimulus that you could support towards those goals. >> if we can preprogram some money, we can incent people to go back to work. we fought this in the beginning. i put an amendment on the floor that would have undone that. what we saw, that was a negotiating item that we had to give in on in order to get the ppp program. so it was a price to pay

my concern is what you said, becky. a great observation. small businesses are having trouble getting people to come back to work, particularly at the lower level of income. they're getting a premium right now in unemployment. we knew that when the bill was passed we tried to do something about it right now there is a possibility about reprogramming some money to allow an incentive for people to come back to work we have to outlive this premium, period the thing i'm encouraged about is we've given businesses another four months to use the money. that will allow them a broader bridge to what we anticipated. >> senator, one area that may have been overlooked, i think you pointed out, that was a lot of smaller banks, community banks. you think we need to update the community reinvestment act and there are parts of the economy that have been overlooked even though there is money sloshing around what would you do?

>> the first thing, we have to get broadband going to rural communities. u.s. department of agriculture has started that in georgia there are places where funding has gone for that. we have to create demand in small businesses and get people back to work that will create demand. the supply chain is slower to open up. that will cause irregularities in the supply chain. that's a concern right now there's a pent up demand i can see it in the airplanes. every week there are more and more people in the airports. restaurants have more people out there. the roads in washington have more and more people out here. i think america realizes they can manage the risk if they follow the protocols and get back to what is going to be a new norm tele working is a new way to do this we're going to be trying to decide what that new normal is,

joe. >> all right we're on our way, senator? i saw a golf match over the week end. one day closer sea island guys didn't do diddly kutch kutcherman in the top five i don't think he made the cut. i don't know how far you hit it and what a great golfer -- we appreciate you being on today. one day closer, one day closer >> one day at a time thanks, guys stay safe. >> thanks, senator we'll see you. andrew. when we come back on the other side of this, the number one disruptor. private companies changing industries and transforming the economy. up next a rare and exclusive interview with the co-founder giant stripe number one on the u n'wa yodot nt to miss it.

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then if you enter some of the more granular data, it's interesting what we're seeing. one thing we're seeing is just the set of businesses that are seeing a very big spike in demand you know, this is probably stuff you always talk about on the show companies like zoom who we power and there's a 20 fold increase in demand. ins instaannounced a 30% increase in demand the services that power working remotely or living during quarantine, those companies are seeing very major surges in

demand that's one part. the second thing we're seeing is the creation of new businesses or businesses that previously traded solely offline starting to move online, this being the case we're seeing in our stripe atlas data, we've seen a tripling in the number of incorporations stripe atlas is incorporating a new business tripling the number of incorporations since this time last year. that's maybe both brand-new businesses or businesses starting to move online for the first time and then lastly we're seeing with the enterprises that we work with, we're seeing them starting to move much faster on initiatives that were maybe planned for a long time or they always wanted to get done but the lockdown has really totally up ended the urgency and privatization of those things. so we're working with companies like westfield retail chain or toast, the restaurant software

platform to initiate their covid platform. >> go back a second. you made reference to the idea of businesses, your second group of new businesses, and the question i'd ask you is from what you can tell, how much of that is old businesses transitioning and how much of that is new businesses that are developing new business models and the like right here in the middle of this pandemic? >> yeah. so we don't have the subgranular layer to be able to say what exactly the breakdown is we are seeing both both people taking time during this moment in time to build out a completely new business or completely new line of business. we've seen all manner of things during the lockdown. maybe one of my favorites was i think it's you probably need a haircut.com which does remotely guided hair cuts, cutting their partner's hair during lockdown,

and that business is -- the market for remotely guided hair cuts is much larger than it was. we're seeing a huge amount of adaptation from especially say retail businesses, restaurants moving from solely in person trading to starting to move online doing delivery and things like this. so we're seeing a mix. >> your business to a large degree benefitted or been one of the beneficiaries of the pandemic so to speak obviously it's accelerated the business when you start to look at what the growth curve looks like, how has it changed is it pulling the business forward? is this sustainable? when you look at what the next year or two looks like, how has it changed >> i think the honest answer is no one knows right now what the long-term effects are. the stock market, not the economy. you can't extrapolate too much i think from the changes we've seen in this first three months of the effects from -- this is not going to be over any time

imminently it will be quite a different state of affairs in one year's time and two year's time than maybe we see today. >> you raised $600 million in april. what do you plan to do with that money? and given some of the challenges that other businesses may have, do you imagine using some of that money to acquire rivals and the like >> our main priority and part of our thinking in that fundraising was that we wanted to be dependable for the businesses on stripe regardless of the outcomes that took place and, you know, especially back then in march when that took place, very different and i would say more uncertain outcomes, maybe a bit more of a sense now as to what the road would look like a year from now. not only do we want to provide a really reliable service that businesses can use to accept money from around the world and do so with high availability and things like that, we also want to be able to invest during this time period because we are still dissatisfied with the

functionality in the stripe platform so we just launched recently five new countries in eastern europe we just launched global visa and master card integrations we want to make the product integrations we want to be able to serve those internet users covid is not a phenomenon to us just in the united states. i think it's possible that we pursue m&a as one of the things we do with making those investments but i would think we think about it at one degree removed from that. we think about it in terms of investing to make stripe the most robust, most reliable, most feature filled platform for businesses operating online if m&a is the right path through which to pursue that, great, let's do that. we think we should be investing to build that in half. >> we have been talking a lot on the program over the past few weeks about systemic racism and

injustice and inequality in this world. wanted to talk to you about managing through that and through these times trying to navigate it and also woman of the work you're trying to do to help end some of these inequities and what it means to manage a silicon valley company at this time >> yeah. i think there's a few aspects to that one is, i mean, you reflect on your own psychology during this and how painful it is to watch much of what's transpiring, not because it's new but because it's not new and stripe is a company of 3,000 people and so we've been having some useful conversations internally on that as everyone goes through that themselves and then we've also been spending time on with strieb how we can potentially contribute and help this is obviously a very broad thing goes way beyond us or tech or silicon valley or anything

like that, but we're trying to find our corner of contributing. and we obviously do that in part through the stripe product where we're importing businesses but we're getting more directly involved whether it be through supporting nonprofits on stripe and sponsoring some of those or directly working with nonprofit organizations focusing on racial injustice or police brutality. >> that was stripe's co-founder and president john could llisio. programming note, you can see the ceo of number 25 on the list, chris britt of chime at 4 p.m. on the "closing bell.." retail sales data. we're expecting a pop in the

numbers from aprilepts ror stay tuned, you're watching "squawk box" on cnbc list, chris britt of chime at 4

check this out, the futures keep getting stronger. the dow is up 702 points may retail sales figures due out in just minutes. ghbaquk x"ilbeawbo wl rit ck

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welcome back to "squawk box. rick santelli here, breaking news retail sales three negative months end in april. may number, zoom, zoom, zoom, 17.7 that follows at least up to this point an unrevised minus 16.4, which is the all-time low going back to when the series started

in 1992. if you take out autos, it is up 12.4%. you take out autos and gasoline station sales, it's still up 12.4%. a very powerful number here. still don't see any revisions, but sometimes the data trickles out a little slower. yes, revisions coming out now. and the control group number, this is really wild. that's 11. 11.0 that's big time. let's go through the revisions 16.4 now is minus 14.7 minus 15.2 is x autos, minus 14.4 x autos and gas you can see the big improvements here interest rates, of course, we want to keep a close eye on. we're up 3/4 of 1% in a ten year if we consider that the highest number ever is up 6.7 from 2001, we pretty much blew that one away becky, back to you >> hey, rick, we have seen the

market picking up -- >> becky, have you seen this i've been asking if we can do this dexamethazone report. its aides being widely reported on right now that the futures moved on this. this is in the daily mail, it's everywhere they're saying biggest -- hyping a little, biggest coronavirus breakthrough yet as the steroid reduces risk of death by up to 1/3 in patients on ventilators in a big study that's going on over in brittain it's on the bbc also reported on it major breakthrough another headline dexamethazone found to reduce the covid death rate it's on some websites. futures rise amid hopes that steroid dexamethazone reduces covid-19 deaths by 1/3

should become the standard of care this happened about 20 minutes ago or so and we did see the futures move from i think about 500 to up almost 800 we've seen things like this before, remember, remdesivir that's why i looked. i needed to see it on ten different places before -- and it's characterized differently, but i don't think any of the drugs so far, and it's a big study that they're conducting on many different drugs, and i don't think we've seen 1/3 in terms of reducing the covid-19 death rate giving low doses. it's a generic steroid drug injected to patients we'll get meg tirrell on this. sorry to interrupt you. >> no. i was trying to figure out what was going on because that move started well before these better than anticipated retail sales that had been there. we saw at the end of the last block. >> we're going to have scott call in, too >> gottleib? >> my son scott. >> dr. gottleib.

>> why you wondering >> no, it's great to see this. this is another one of those additional things we've been waiting for. everybody is waiting for a vac seen and you're waiting for any therapies that could improve the statistics in terms of who survives this and how people survive this, too. we'll continue to watch this closely. >> remember, we've heard that when you have that immune cyin, we've heard steroids have mixed results. sometimes the steroids made you more susceptible to the infection of the virus itself. it may not work as well. >> it stepped up your body's reaction. >> right andrew, what's up? >> well, no, i wanted to put some detail on these numbers they looked at 2,000 hospital patients given it compared to 4,000 patients who didn't. specifically, this is the important part, i don't know if you're going to take this as a

positive or not. it's positive but maybe incrementally positive for patients on ventilators it cut death risk from 40% to 28% and for patients needing oxygen it cut the death risk from 25% to 20% so all directionally good but also suggest -- >> 1/3 is the best number. >> it's incremental. >> 1/3 is the biggest we've seen i don't think remdesivir was anywhere near that and you remember how excited we got about -- meg tirrell is with us now. meg, the futures -- 200 points is -- 2, 300 points is not that much, but certainly the bbc and some of the other british news services are touting this as a pretty big deal. >> reporter: yeah, joe i mean, it just shows that we have so little right now against the novel coronavirus. scientists have been hunting for

months through libraries of existing compounds to find anything that might have a benefit against this there were huge hopes pinned on hydroxychloroquine and chloroquine which didn't pan out. if turned out worse than we expected with the fda warning that not only does it not work but it makes remdesivir not work as well. this was an oxford university trial. they had also been evaluating other existing drugs including hydroxychloroquine and this appears to have some really significant impacts. i heard you guys talking about it for patients on ventilators, reducing the death risk from 28% to 40% for patients needing oxygen reducing the death risk from 25% to 20% they're quoting the lead investigator of the trial here saying it's the only drug so far that's been shown to reduce mortality and it reduces it significantly. it's a major breakthrough. that mortality benefit being able to show that a drug not only can help people get through

the disease faster but actually save their lives, that's not something that we saw with gilead's remdesivir. while the trial trended in that direction from the nih, it wasn't statistically significant proving that the drug actually saved lives. that drug was able to shorten the amount of time to recovery from the disease having a drug that's cheap and widely available that can actually have a benefit would be huge i really want to dig more into this and learn more about the study. >> i think we have scott -- dr. scott gottleib on. are you familiar with -- i mean, can you go into the background on this, scott, in terms of -- i mean, steroids, this isn't a new idea are you surprised that this would have -- is it a really positive effect or do you think it's not -- could it be statistically an aberration to cut deaths by 1/3, do you think? >> well, this is a well-designed study so i have confidence in the study. this is a pretty robust study.

the cdc recommends against the use of steroids in covid some department show a benefit steroids used in ards including ards induced by viral syndromes that haven't shown a treatment effect this is a very positive finding and it's a robust finding. it's a well-done study i think it needs to be validated, but it's certainly suggestive it can be beneficial in this setting. i think it's an important finding here today from this rigorously done recovery trial >> you're saying it's a big enough study to where 1/3 would not be -- it's unlikely that that would not be -- be able to repeat it? it was statistically significant that you reduce it by 1/3 and there are enough patients to make it where you have confidence in the conclusion

>> yeah. this is a strong treatment effect we're going to need to seethe underlying data and analyze it more closely, but this is a strong treatment effect coming out of a well-designed study obviously there's been a lot of interest in trying to use steroids in this setting it could be that covid is inducing some specific immune response that's precipitating the lung damage. we know that it's inducing cytokine storm that's why doctors are using il 6 and jack inhibitors to try to get that immune response. it could be that steroids in this setting is different than using steroids in a typical ards setting. part overhang of steroids around covid is that we've used it before in the setting of sepsis and acute respiratory distress syndrome and we haven't had much luck there's been a lot of studies in the past that haven't shown a benefit. there was an assumption it wasn't going to be beneficial here some of the early studies department show a benefit.

doctors turned away from it. cdc on the website doesn't recommend the use of steroids. this is an important finding that will change dogma i think it needs to be replicated we need to see the underlying data it will probably have an immediate impact on what doctors are using in the icu setting. >> it wasn't expected to work. i've seen -- when we've seen other acute respiratory distress, sometimes have they been counter productive? >> that's right. if you go to the cdc website, you pull up data, it's 6, 7 studies they reference in covid looking back at older studies and viral induced ards where it's been negative. >> that makes me wonder then do you think it's repeatable at this point you said it's a rigorous study maybe this should be taken with a grain of salt because it's so surprising >> i don't think so. you know, we need to see the underlying data. we need to validate it, but we

know that covid is ip duesing a different kind of inflammatory response than some other infections in the lungs. the sepsis that you're seeing in the ards from covid is probably induced by cytokine release. we know there's an overwhelming inflammatory response. that's why doctors are using drugs more targeted like the il 6 drugs. steroids are going to have the same general effect, they're just not as targeted so it's plausible that a steroid in this setting could act differently than it would typically act in the setting of sepsis or ards you could postulate a reason why it might work here and not in another setting because of the way covid's affecting the lungs. we're going to need more science to understand this, but this is a well-done study. this is why we do studies like this. >> becky >> dr. gottleib, the

dexamethazone, do you know why it may be different than the other steroids used in the other studies? >> good bioavailability. it's an old drug it's -- it has more potency than other steroids that could be used in this kind of setting but it's an old, available steroid it's potentially -- there's the potential that other steroids could also be effective in this setting. dexamethazone is a drug that doctors are accustomed to prescribing. >> i have a behavioral science question we're all hoping for a vaccine or therapeutic and the question is -- that i have about a therapeutic is what do you think the standard has to be, what do we have to get to until the public would say to themselves, you know what, i know there's not a vaccine out there but if i get sick and i take this therapeutic or some drug is available, that either prevents me from going to the hospital or absolutely prevents me from dying, what do you think the stats have to look like from a

public policy perspective for that to ip still the kind of confidence you'd want people to walk around and come back into the economy and hopefully not have to wear masks and do all the things we want to do. >> we'd have to reduce this to the morbidity and mortality for the flu for people to feel more comfortable. we're going to be doing a lot better job if we do have a resurgence in the fall, we'll do a much better job of preserving life first of all, older people are going to do a better job of protecting themselves. already seeing more of the people getting infected are younger people we've learned to antiquo ago gu late patients. this disease was causing blood clots. we have remdesivir available we'll have one or more antibodies available now it appears that steroids can be used in the setting of critical care to reduce morbidity/mortality potentially in the icu

we need to understand more about this finding you're going to see the death rate come down even in the second wave as long as we preserve the health care system and the health care system itself doesn't become overwhelmed and you still deliver care to people. >> doctor, even in one of these reports from the bbc or one of these it said they did the math on the deaths in the u.k. and said 5,000 deaths could have been prevented do you think that's fair to go ahead and extrapolate what could have been done to people on ventilators if they had this and say you could save that many people >> it's difficult to do because you don't know if the people who succumb to the infection were similar to the people in the study. i wouldn't make those sort of retrospective judgments. >> i read that but certainly it seems to have some efficacy and would you say even when you characterize it, more efficacious than remdesivir >> certainly appears that way, although they're being used in different settings so it's hard

to make apples to apples comparison if the top line results are true, i haven't seen the underlying data, i'm reading the same press reports you are, this is robust from a single agent in this kind of setting where you have critically ill patients who have a high mortality. mortality once you get intubated is around 50%. all cause was around 20% you're talking about patients who are very sick. if you can reduce death by this magnitude with the introduction of a single agent, that's a significant can't treatment effect. >> if it's repeatable, 1/3 is significant. if it's repeatable and statistically significant, you would think 1/3 fewer deaths of people on ventilators would be a positive anyway doctor, we want to thank you dr. gottleib. >> thanks. >> thank meg tirrell as well. we're now up over 900

points 917 points we'll see. it was up 550 even before the news coming up, retail sales, almost forgot about that 'lteoug nearly 18% last month. wel ll y what drove the numbers. stay tuned, you're watching "squawk box" on cnbc 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. thats where i feel normal.s an hour, 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.

welcome back, everybody. may retail sales surging by 17.7%. that is the biggest monthly jump ever joining us right now to talk about the rise is steve liesman. also, mike santoli and matthew shay who is the president and ceo of the national retail federation steve, i'll let you take the first swing at this. we knew they were going to be good what do you think is happening here >> reporter: first of all, i want to make a comment that the way we played this was absolutely right because health news and coronavirus news from a market, from an economic standpoint trumps actual economic news. here we are in what was going to be the first place story, now in the second place, which is

appropriate. i want to say before we learned about this drug, i was going to say this was a rebound on steroids i told you i was watching the discretionary items. i'll give you some of those items. clothing up 188% after falling, where is the number, 63% in the prior month. sporting goods, hobbies, musical instruments, book stores, stuff you don't necessarily have to have up by 88% and you still did a lot of retail over the internet miscellaneous stores up 13% and furniture and home furnishings up 90% after falling 21. electronics up 50% so broad based this is going to cause economists to have to reduce the decline i can't say by how much just yet, but reduce the second quarter decline. there's already talk, this is significant, i think that nbr if this continues is going to have to call an end to the recession that just started.

we'll give you two caveats services are 2/3 not including services services remain hard-hit because people are willing to go out and get services though they could be coming back and the year-over-year decline is still% still a way to dig out and have a true recovery. but these are good numbers, good news, and going to cause an upgrade to the economic outlook. >> hey, mike, your reaction, not only to the economic news, but to the health news, as steve said, you watch the market take off like this. it's now at 911 points >> yeah, it pulls together in one little note, in which the market is recognizing there's not been a behavior change even with infection rates going up, people are spending, not saving the income support tracks. they're not planning for this to be a prolonged period of hunkering down we're talking about small, year over year declines in may retail

sales. so that's a tremendous upside surprise and i do think it has to -- everything has been pulled sooner we knew there was going to be at some point after a dramatic decline, a dramatic rebound. but it happened in may, not later. and that i think supports the case that the market is not worried about the fits and starts that might come a long way with the reopening, at least in this phase when we're coming off a very low base. that's my response plus, yesterday, the fact that the market took off to the upside after an 8% decline on really not new news on what the fed was doing on corporate bonds. it just kind of shows you the twitchy moves to the upside because people don't feel enough exposed to a market that isn't going to pull back more. >> hey, matt, let's talk about retailers. i know it's difficult to kind of put everybody in one basket because the difference between the haves and have-nots, in retail, is such a huge gulf at

this point what do you say about the numbers, in terms of where they stand right now, how strong they are. how many of them are going to be able to come back. how many are able to thrive in this environment >> yeah, well, becky,obviously this is incredibly encouraging news and i think this is encouraging with what we heard ceos and other retailer leaders saying about the momentum, even in late april that just continued. so there was significant pent-up demand that steve and mike just said you saw the checks going out, the unemployment benefits going to the right places. all of the work on the c.a.r.e.s. act and the supplemental work i think provided a big jolt that we needed and retailers have been adapting to serve their customers in new and different ways i think the big question, really, because the big retailers and you've seen the reports of what walmart did and target companies like b.j.s and lowe's

and many others. the big question is what happens to the small, independent, midsize companies. can we get the rest of the country moving enough to bring the small businesses along because they're the ones that don't have the same resource capabilities they don't have the same supplier relationships they get hit harder and first so we need to bring them back quickly. >> what's the answer to the question you just posed because that is a quell people are looking at is there a way to do that so the smaller businesses don't get left behind? >> i think steve made an interesting point. and the time that you spent earlier in the conversation at the bottom of the hour talking about some the therapeutic, the potential promise of new therapeutic and how it can help here that we've driven into the recession, as steve said, maybe the shortest on record that we got driven into it, people pulled back and we closed the economy. so keeping the economy open i

think is going to be the best relief for small businesses. we can't go into lockdown mode again. retail, shopping in and of itself is not an unsafe act. we saw that with the economic first responders that remained open throughout the first three months and the operation doors shared that promise with the companies that were forced to close. so, as we go forward, there's no reason that many of those businesses forced to close should be closed again, large or small. we know that's going to work a real economic hardship and we also know the mere act of being open is not unsafe it's been safely by the other companies. i think the answer, becky, for the businesses, small and large, the only real relief the fed is doing extraordinary things, the congress is doing extraordinary things there's not enough money, we have to keep the economy open, we've demonstrated that safely >> mike and steve, thank you for being here

matt, and over to you, over to you. >> we want to get to cnbc headquarters, jim cramerwaying in on the new medical news and what do you think it means, jim? >> it's an old-fashioned steroid. a lot of people have stain the steroid, it's something that a lot of doctors have given for swelling it's incredible for me that it wasn't done before once again it proves that science was just baffled by this whole thing. i mean, when you put this drug in people and it works, i would tell you it works for tons of things and i betcha a lot of our audience has taken it and it's surprising, but again, this is a drug that says that the problem isn't -- it is not involving the lungs. it's a -- it's a circulatory problem, it's a vascular problem. you take this for vascular

problems we didn't realize that we thought it was a respiratory problem so we were giving all the wrong drugs all the time i think it shows you how science was fooled because i cannot believe that this drug is the drug that's working. >> right >> it's like, hey, if you went to the doctor and you had swelling in your knee, about a quarter of doctors would give you this thing >> okay. jim, we'll see you and more good news -- >> don't forget, carnival cruise is up, i'm sending up norwegian and united what else do you want me to take up the nickel which is nicola anything you want me to pickup isn't that right >> well, that's the question that's the question. do you want -- look, last week, people thought everything was overpriced now, everybody wants to be in the market that's goes up again. >> yeah, they didn't like it at 120, 230, they like it okay i was on this drug for a month

>> right >> i didn't even know. >> hey, jim. we got to jump >> why why, what is that? i'm having a great time talking to you why are we jumping >> i love talking to you, too. >> why what are we jumping for? you and i should talk about this, because the nuts, right? >> we should >> united air, i see you -- you want to pay 40, 40 >> let's go to "squawk on the street" and we'll finish the conversation i'll see you in just a little bit. thank you, jim our next guest says the pullback has done enough to stimulate the market jim paulsen, chief strategist. jim, were you going to say before the news was out to say that you thought the move last thursday was probably cathartic to some extent and this was

going to resume? that was your view >> yeah, joe, i guess i'm most impressed with headlines and the disconnect here a little bit i notice on the cnbc website the bank of america survey showing 70% of investors think the market's overvalued. and maybe two-thirds of them think this is just a bear market rally. that could be right. but it shows a sense of bearishness and caution. and then "the wall street journal" this morning says investors are sitting on the largest pile of cash ever. we still got a high level of bearishness and the bears are loaded with buying power, will you will, on the sideline. i think if you take that with what's going on with data, the bounce in retail sales, after the bounce in employment, suggesting not only will the second quarter divot be less than expected. but it looks like the return to life again is coming sooner. it's sort of -- that disconnect between fundamentals doing better and a lot of bearish

investors yet, i still think not only puts a floor under how low this can go, but increases the upside potential yet, i think down the road and that ombination, i think w got a little over our skis, you know, last week with bullishness. but that's been taken out of the market again and i still think that we're in a fresh recovery and we're in a pressure bulfresl market probably earlier in that >> 40 seconds, explain how you think that even earnings estimates mike raised in the near future. why? >> yeah. i think, joe, the next big event here will be earnings estimates on wall street will be lifted for next year. and it's just going to follow. we have retail sales numbers like this. and numbers, economic supplies went from record lows to record highs in recent weeks.

it's almost expected that earnings estimates are going to be raised. i think if earnings estimates are raised it's going to reduce the bullishness, people saying market's coming back doesn't look as overextended >> short and sweet that's exactly what we wanted to hear from you, though. >> thanks. >> we're done. w retail sales were good and a potential covid-19 treatment. see you tomorrow "squawk on the street" is next ♪ and this is "squawk on the street." i'm david fabbrill with jim cramer we're looking at markets begin to trade, right there on the board, a significant rally, perhaps, at the open retail sales came in better than expected there's a steroid being used in the uk that apparently