good monday morning. welcome to "squawk on the street." coming to you live from separate locations as we kick off an important week new york city enters phase two reopening today as we watch rising cases in other u.s. states futures slightly red here as the nasdaq shoots for a seventh day higher that would be the longest win streak of the year and crude oil

above 39, jim. but this morning, we'll watch maybe a tale of two cities if new york can do this as they reopen offices and hair salons >> i think new york is taking a big risk because new york has beening ino ing inumber one when you have the least covid, i guess maybe you can say it's time to open but also to be the least covid for a little bit i know you need to do it because too many businesses that are going to go under. just be too long and the cash flow is too low. i worry about a bit of a spike because it is great to be a state that you feel safe in and, yes, i want my, i don't have to worry about my hair being cut but yes i want these businesses open and get cash flow it's been just a delight to having lost vigilance but little less nervous on father's day pretty good. >> interesting kudlow saying a moment ago he does notanticipate another

nationwide lockdown but one thing that friday did demonstrate that apple and cruise lines will curtail their own operations if they sense any need for caution >> well, it's like the shift from new york to the rest of the country is pretty monumental however, they know how to handle it better. that's really important. they know what it's really about. it's not just respiratory. i think the hospitalizations to fatality is much, much better and that matters tremendously to me to everyone. >> yeah. the good news is, of course, mr. kudlow was quick to hit the death rate is way down also, perhaps, guys, a result of the fact that in places like florida, in particular, and some of these other hot spots, the p population getting it is younger and, obviously, therefore, in a much better position to weather the virus. maybe there is some success in

terms of those people who are more vulnerable not participating. but we've talked about that a lot, jim, in terms of the impact on the overall economy when you have 10% or 20% of people not really in the position to participate in economic activity in terms of going out and doing things >> well, there is this just kind of bizarre, let's say hopeful world versus the world that we have and i think it's centered to me on sports. the nfl is acting like, please, don't worry. the season is going to start but we had colleges and students come back and the number of outbreaks of covid are so great that it's hard to imagine that one team with an outbreak of covid playing another team that doesn't. i think we have to be aware that there are -- that things have just changed forever until they stop this thing. a vaccine, yes, it's great china was able to cut it the way

it did i think everyone seems to be in denial about that in washington. >> sort of brings to mind some macro desk playbooks out this morning, jim one is morgan stanley with a bunch of ideas of how to play a post-covid world and i see david at goldman this morning say a continued risk of a second wave and on top of that election risk, which has been an ongoing theme for david keeps their year-end target at 3,000 and they say we're going to chop within this band of 27.50 to 200. >> i love david this time because farm buying and consumer buying that is moving the stocks up that is very impressive. new buyers as opposed to companies being able to buy that stock. david is a creative strategist and very right for a very long time >> as we saw at the bottom of the screen there, guys carnival cruise, jim, no

surprise, delaying new cruises until the end of september >> end of september. >> and we've also seen this morning, of course, american airlines hitting the market. there's a look at carnival, by the way, and the other two major cruise companies we'll see how they fair when we open for trading in 25 minutes or so from now we also saw american airlines both debt and equity selling $750 million of straight common and convertible and also new bonds, borrowing, as well, from banks. they are trying to raise as much liquidity as they can to get ready, i guess, for the fall >> well, phil lebeau said that they are losing $40 million a day, which is staggering i also think that we must not be oblivious to the fact that this stock was moved up by young day traders who got very enthusiastic and were led by people who said american is cheap and it's going to bounce

back and i think that american correctly is taking advantage of what i regard as people being momentum traders where there shouldn't be momentum. >> right by the way -- >> yeah, guys. >> yeah. talking about this retail phenomenon which is so interesting and powerful and figuring into the daily sort of workings of the market, jim. you have been talking about it a lot and day trader dave and everything else going on the price talk is 6 to 6.5% on the coupon we'll see where they will end up pricing it i'm not sure they have yet that is where they were and conversion premium up, what was it, up i got that somewhere. it was up, i don't have it sorry. >> what's amazing to me. >> 17.5 to 22.5% conversion

premium. >> if you think there is a vaccine, that is a great piece of paper these are vaccine versus no vaccine issues i wish it weren't that case. typically you want to have higher yield versus low yield. but what these are bet on pfizer and merck and bet on regeneron and j&j. if you make that bet, you do it with that piece of paper good yield and american would shoot up dramatically. three years and i think that some good is going to develop during that period i don't know it's interesting is what i'm saying and as to american dave with day trade, we'rer a ereferring to d on tonight on "mad money" and the original tie up was about sports book will he continue with stock book.

he's done two pieces an analyst downgraded deutch bank and i'm not going to encourage anyone to watch anything the difference is that you can watch, millions of people watch him and only my assistant watched me >> that's going to be a show to watch tonight, jim as for the irrelevant aairliness we see an industry trying to work out the mechanics of how people use their service and low they incorporate masks it was amc last week and now ed of delta told axios how they can enforce the use of masks on their planes here's what they said. >> if you take your mask off, no, we will not forcibly remove you from the plane if the government were to mandate it, that would help. if the government mandated it,

you could enforce it >> that's going to be, i mean, that's a more immediate concern, jim, if you're betting on airlines and the hopes of a vaccine. in the meantime, you have to worry about liquidity and how much comfort passengers have when they're flying. >> i think they would be, certainly a lot easier you heard larry kudlow speak and they're always talking about optional that's a mistake the way that taiwan stopped this was no option. and if you want to end it, you have no option i don't want to sit next to someone who is not wearing a mask therefore, i won't fly there you go i mean i very much want to travel, but i'm not going to fly until i know everyone has a mask on that's how you protect yourself. that mask optional is like saying, hey, covid optional. i like shopping at costco. 16-feet aisles and everyone must wear a mask or they can't get in they don't mind if their sales go down because they want to be

covid free i'm not dying to get on a plane. >> will you go into a restaurant indoors and eat a meal >> i insist on it. i won't let people in right now. what is great the city closed a lot of the street so we can have tables in the street which is really -- we almost have as many tables as we used to they tell me it's, i think that's suboptimal. that's a joke. >> yeah, i get it. i'm aware. and i'm glad you're going to have as many tables outdoors, hopefully by the time it gets cold we'll be able to adjust but you would be willing to go inside a restaurant and have lunch or dinner? >> no, must have a mask. i won't go in unless there are masks. i know you have to take the mask off to eat but i'd prefer -- look, it is an

issue. which is why i want to be outside if i eat i don't want to go to a restaurant inside. and i mean, yes, you have to wear masks and therefore no one wants to eat there i want to be safe. i don't want to be the guy who is dishing out covid what would you like with your covid, sir >> we're going to get a reading on how comfortable consumers are as new york goes into phase two, guys we'll take a short break here as futures are mixed. calls on individual names today, including apple, walmart, american express, peleton, gap, fedex, intel we'll get to all of them when "squawk on the street" comes backow, it's hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though.

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as we said before the break, phase two of new york's reopening is now under way effective today. our contessa brewer is in new york with a look at what to expect hi, contessa >> hi, there, carl we are hearing the birds and lots of traffic. we have not had to deal with this in quite some time. phase two will pull as many as 300,000 more workers back on to their jobs in the city in-store retail, hair salons, office jobs. we know that jpmorgan chase and goldman sachs are beginning to bring back employees and restaurants today can start offering outdoor dining, but with social distancing measures in place but not all restaurants are diving back in

he owns 15 restaurants in the city and around the world. i'm out at the perry street restaurant good morning. >> good morning, contessa. >> how are you handling reopening plans for your dozen or so restaurants in the city? >> we're learning to operate in the new world of covid but, you know, all about social distancing, of course. laws, masks and the safety of our staff and the safety of our customer we have qr codes that you can actually, you know, like this. >> right here on the table >> and then you see you can load the menu >> you're even going to try to limit the interactions with the waiters in other ways, as well >> by next week, you'll be able to order directly from the table to your waiter from your device. >> what about globally are you learning anything from the other restaurants around the world that had reopened earlier? >> we have two restaurants in

shanghai in china where everything started and we closed there on the 25th of january and reopened two months after and masks and temperature, qr codes and we are excited to go back to life started with phase two dining and we will keep you safe and do our best in the kitchen. >> a few more days until perry street reopens and in the meantime, guys the mayor and the governor will be watching the covid case numbers and really avoid replicating what we've seen in record spikes else where that have been open for a month or more from their time and, you know, nevada, for instance i know you have a restaurant in las vegas, as well they have to watch the corona cases there, as well >> contessa, thanks. what a great illustration of the week ahead for new york city our contessa brewer.

jim, does that sort of fit the model you're trying to build at your own place and your expectations for the city at large? >> yeah, very much so. if anyone thinks i'm equating our places to his, i mean. we worship him so, let's understand that one place is a bar and the other is a restaurant look, we're all very confused. i mean we don't want to have a model that looks like florida. even though florida seems to be doing well we all want to know how many tables we can really have and we all want to know how to enforce. how do we enforce this you know, we don't know how to do it. enforcing social distancing, enforcing people to come up to tables we're just, help us, please. we don't know what to do we're not guards we're not police >> no. listen by the way, florida's not doing that well, jim i don't know what you mean >> i just meant that they're

having a great time down there i don't know how they dot th th. that's unimaginable to me. >> not far from where contessa was goldman sachs having partners back in the building today, guys. interesting to see as different firms are taking a different approach and, obviously, goldman is not having everybody back but they told many of the partners, we expect you to be in. so, there they are jpmorgan starting their return and we talked a lot about elevator time and how many people in an elevator and whether there are going to be wait times or how you can stagger it these are the things we are dealing with today >> a spike in retirements. because they've been at home and kind of liked it >> there could be. listen, you know, investment bankers can do their jobs from virtually anywhere vu virtually, as well, being a key

part of it traders when you're on, there is a benefit when you talk to being together to sharing information in the way that it is shared on a trading floor, jim, as you well know. so, certain functions that simply don't have to be in the office so to speak of course, the larger question, i think and earlier "squawk" had larber on. what are the needs going to be from these huge tenants in the future you know, how much of their workforce are they going to be happy working remotely how many people are sick of zoom meetings all day long and want to get back to the office? it will be a different world and companies are thinking about that all the time. in terms of collaboration, in terms of what has worked and what hasn't. in terms of the mental health of their employees. so many different things going on here. >> nobody wants you to visit them so, if you're trying to make a sale, you better do it on zoom because they really don't want

to see you a new person in the ecosystem. i don't know how you begin to have business dinners and so much business used to be done by dinner if you're sick of zoom, just go buy the stock. it's just unstoppable. >> yeah, we're good to upgrade, the same dynamic the food at home dynamic is going to have continued strong support. we'll take a quick break here as we watch futures continue to trade in a pretty narrow band on this monday morning. busy week ahead. "squawk on the street" is back in just a moment ♪ ♪ ♪

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welcome back as you can see, a little less than five minutes before we get started with trading for the week let's talk about the biggest market cap name out there still and it is apple. that's the mad dash. jim? >> david, historically worldwide developers conference dddc is an occasion for the stock to spike and then the traders sell. i don't know if that is going to

happen this year because out with a piece raising and they switched out of intel and arm. more importantly it's 5g we talk about this a lot the idea is how do you sell apple before a new 5g cycle? the answer is, you can't that is why this continues to be a levitation situation the revenue stream that comes from service is going to be valued at a higher price journal than the hardware. so, maybe this time the worldwide developers conference does not lead to selling and people just own the stock. >> now, you dismissed and, you know, i saw it again this morning on "squawk box" dismissing this idea of it becoming a real issue for them you continue to believe that is the case >> everyone is buying in the same way people are buying carvana and vroom.

people are buying online the high level customer satisfaction has not led to, hey, i have to go kick the tires. the stores are monumental and they're terrific and it's great learning experience to go. but it turns out that people are perfectly willing to buy things from apple i want to know if there is a new watch. i swam in my watch david, i know you like to swim i got water in it and turns out it didn't work for a while i had to drain the watch i hope the new ones don't require draining >> i have been thinking about it because i have been doing open water swimming given there are no swimming pools open and it might be helpful because it has a good app for swimming. >> it knows you are doing backstroke and knows that you switched it knows more about you than you know about yourself. psychologically speaking >> right could be helpful but also a little scary. yeah could be helpful for you, too. i don't know maybe it is.

>> i realized whether i'm acting out or not it tells you, jim, cool it >> i don't know. by the way, good to have carl back carl, you still wearing your watch any more >> i got it right here, guys i'm not doing open water swimming, but i do have the watch on i will tell you one thing, guys. tim cook was on cbs over the weekend and had a couple interesting points to make with john dickerson with corporate responsibility when it comes to paying taxes and considering constituencies other than shareholders here's what he said. >> apple has a market cap of about $1.4 trillion. what is the role of a ceo in a socially responsible company that has that kind of size in the world? >> you know, there was a time back many years ago where ceos were just supposed to focus on profits only

and not so much the constitue y constituenci constituencies and that's never been my view. i've never subscribed to that. >> jim, unlikely that that is going to dent the stock or any interest in buying the stock >> we now find this is the new way. i mean, there is a piece out today raising price target for sales force saying it is lagged by 32% its 's talking about mare expansion. if you're not thinking about other stakeholders two new groups of investors. the investors who have already traded 400 times today and are down a lot and then the younger people who say, you know what, i want to know what this company is doing socially before i decide that i want to own the stock. more in that 25 to 35 and tim cook does it because he thinks it's right chuck robins $200 million cisco

in order because he thinks it is just right there is a lot of heart involved i know, business is not liked by the left, but that's also not why business does it a lot of it they look in the mirror and they think you have to do more i think it's true. >> well, we'll see what today brings, obviously, as you guys mention. wwdc begins today virtually for the first time there's the opening bell, guys we were discussing new york phase two and the reopening just in the last couple of minutes, jim. disney says they're beginning phased reopening of paris disney in mid-july and delta will resume flights to china on june 25th so, baby steps >> wow that's big that's surprising. i find disney stock is just languished here because people don't think it can open as much as it needs because it's like, well, very small number versus what it was. but going to china on a flight

i regard that as being a major opening. well, of course, the same, you can argue if you tyson foods which we haven't touched on and how the chinese have said no to poultry from a certain plant in arkansas so, there's pluses and minuses with the china relationship. but that's amazing that delta is going to go there. good sign. good sign for commerce that's what it's a good sign for. >> yeah. i don't even know what is prevented or what the rules are right now. i thought we -- don't we still have reciprocal bans on certain amount of travel in certain countries? >> that's what i'm kind of amazed at. carnival is saying we're going to cruise. are the companies making the decision or is the government making the decision? is it really going to be up to carnival or royal that they decide they're going to cruise and really up to delta is delta doing some sort of foreign policy

i don't understand it. no one understands anything. >> i know. they're going through seoul. maybe that's -- we need to figure this out or just understand it better >> i found out what k pop is >> got some publicity over the weekend. that's for sure. >> i use tiktok and tiktok, by the way, is kind of cool i mean. >> you like it, right? >> i do like tiktok. >> were you doing any dance moves? >> in the pool, yes. in the pool, yes >> good, nice. >> absolutely. that's why i got the water in the watch. >> we're going to get some of that on air, i guarantee you >> i was falling asleep while i was fishing. we can run that if you want. >> jim, we mentioned the whole reopening dynamic and then as we said earlier jeffries takes

campbell and conagra to buy and walmart to buy at 135 and the gap between the laggers and winners in retail will continue to widen will we continue to order in and eat at home for the duration even as these reopen. >> turns out, not everybody is going back and, second, not a lot of restaurants to go to or variety. i just learned and we just got permission to put tables outside because of the haphazard nature where you can and can't go helps campbell and conagra and i think these stocks are good. i had campbell's on and i think they have a magnificent path towards growth turns out you eat the stuff and it's pretty good david, i know never a favorite but you look at what they have and you say, this is pretty good millennials, by the way, love frozen food.

i guess because they owe $80,000 a year in college and now you have to pay $80,000 to sit at home >> well, let's hope not. university of phoenix online is going to play university online. safest game there is >> that's suboptimal for these country's universities that process is continuing and so important for the u.s. economy, as well when we talk about universities and colleges and what the plan is for reopening >> what is the plan? >> many have made their decision >> many are opening in august and going straight through to thanksgiving, jim. others have to figure it out others have tried to go remote and also depends if they're in the center city or a campus that is better defined and they can sort of contain people there but there's a lot of questions and then, of course, the larger question -- >> think about what you said through thanksgiving and that's because they expect a second wave and somehow believe that they can avoid it at school

during the post-thanksgiving i just think, carl, kids that are your age, i mean, what happens if they don't go back to school do people stay at home who had a job? >> yeah. i mean, it's one more thing that you do not need to travel to go visit your kids at school this american express downgrade this morning, jim, out of ubs, as well. going to sell based largely around the idea that there is going to be less need to travel. >> i think that that piece was a sentimental piece because it basically said less need to travel, less need to go out. if you listen to larry kudlow, they're talking about how to change the taxes so you might want to go out more. it's not about taxes it's about safety. i keep coming back to it -- i mentioned a vaccine and there's a dozen people immediately on my twitter feed that said there is not a vaccine. never a concen effort to have a vaccine like this and antibodies

to get you out of the hospital i'm not as negative as people are that the idea that there could be something, a vaccine. but i do think that we discovered that eating at home with your family is not bad. i mean, it isn't we talk about stuff. we learn kpop. for me, talking with my kid. it's kind of fun >> that was the one benefit, the one benefit to this period was having my older one home when he would otherwise not have been given his senior year of high school or the end of it. so, yeah, i count that as very lucky having all those dinners >> thank you >> that said, again, back to school, who knows. particularly actually not for colleges and universities as much even for public schools where people are coming and going every day. it's still going to be potentially problematic come the fall, particularly in certain

places the rates continue to go up guys, i did want to talk we were mentioning travel. we were talking about some of the partners and the like going to goldman sachs but i tell you if you were a senior banker or anybody like that, when are you dweg poeg goe getting on a plane to do a business meeting or is that part of air travel going to be impacted for quite some time to come because we all know that is a very high margin and part of the business for so many of these airlines and, again, it's worth mentioning both american raising a good amount of debt and capital through debt and equity. convertible ordering and $750 million like size amount of pure equity and then debt ual also said to be raising as much as $5 billion but, jim, that question of business travel is an important one because a lot of those people are also in a cohort where they may not want to travel in their 40s, 50s or 60s

or older and it is going to be less likely they're willing to get on a plane for one meeting >> i think that important part of the equation is not going to come back very fast. again, i don't think people want to see you i think people are much more fearful than washington makes it sound like if you can use zoom or web ex to get the deal done and everybody else is using webex the competition is the same. i think it's more that when you get there, nobody wants to be with you unless everyone wears masks and there's unified, a unified decision from washington that everyone must wear masks i think that travel by corporate travel is just not going to come back the way people think. it's just too dangerous. >> yeah, that's clearly not in the cards right now. any kind of national mandate on masks. jim, you know, and then, of

course, the whole dynamic of jim's reopening. i see takes peleton to 62. that's a new street high stocks up almost 4.5%. that is one of the pieces of research that basically is much more about an eco system and digital and how many different things peleton offers. look, peleton, vroom, carvana all part of why i keep hearing the market should be going down. but these are companies that are major companies people talk about where business is great. i can give you a ton of them a trade desk these all benefit. and crowd strike benefits, palo alto benefits, cybersecurity and virgin galactic because you can leave the planet we haven't even talked about virgin galactic. that thing got approval to send people to the space center you know kind of. something. versus expedia

>> yeah. >> tell me that billionaires don't want to go to the space station. they got money to burn, right? don't they already have a line-up of people who want to go to the space station how many people can the space station accommodate? can you eat outside of the space station like you can everything's so crazy. do we -- can we just admit that it's all crazy deutsche bank and people are upgrading peleton and people like campbell soup because the chicken noodle is good nothing's the same nothing. because the online book store. people don't like olive garden and i don't know what's the same? >> and don't forget the fed. don't forget the fed whatever you do because that seems to be having the outside influence of

the people's view overall. the fed's willingness to come in and buy individual issuances or bonds. >> jay has been upgrading everything jay upgraded corporate bonds >> jay powell. >> upgraded etfs we have to get him on the show don't you think -- >> i call him j.p. i call him j.p i don't know >> j.p. morgan like an illusion to that we get jay on and maybe jay likes the airlines here? is he backstopping and take down some of that american deal >> monetary policy is designed monetary policy right now does design to help smaller businesses and the likes of those that are in need of capital. >> is jay going to be hair salons is jay buying barbershops? >> i don't know. not designed to help apple or amazon but having that impact and helping them, of course, because the investors are

gravitating towards any place they can find growth and, obviously, no yield available in any other class. >> by the way, it's not, it's not just a powell thing. italy is working on a fiat chrysler package as we speak germany and luftansa has a package. it's global. >> look, the governments are out to save as many jobs as they can and they're hitting these industries that have huge numbers of people who are employed and it makes a lot of sense because none of these companies did anything wrong what -- i'm being told we have to move on what are we moving on to >> well, let's check in with bob pisani and see what's happening as we open the markets on this monday >> mildly down day and the week after quadruple which tends to be to the down side. weird open, tricky right after the close on friday futures dropped 30 points in 15 minutes. so, the futures were rallied in

the morning. so the futures were up compared to the close on friday around 4:15 and, yet, we were still down so, tricky open here keep an eye on that. so, the week, as i mentioned after coop ruquadruple which teo be down. banks remember we're going into the stress test and maybe dividend cuts we don't know about that yet industrials and futures, oil futures expiring doesn't seem to be much of a problem compared to a commonths ago. tech still out performing because apple and microsoft are up so, now we're approaching the end of the first half of the year a week or so away here and pretty simple story. mega cap tech is up and everything else is basically down for the first half of the year so, the nasdaq 100 here if you look is up almost 15%. put up that full screen there and the s&p is down 4% and the rest of the world is down. europe is down 11% and japan is down 5% and shanghai down 3%

you can see this is quite a wide dispersion here and the outperformance of the mega tech names and every day we put up the usual names and the big five amazon up, that's not a typo, 44% for the year and microsoft and apple and facebook the only real laggard here is alphabet a comparative given the s&p is down 4% but that's the laggard of the mega tech cap group. the good news is advancing and the data still supportive of a recovery and a full lockdown seem kind of unlikely at this point. the bad news is the outbreaks are going to be with us for a while now ittic loo ilooks like the key to keeping the market up is a bottom for earnings cuts. let's take a look at where we are here the market is expecting a recovery, but sure as heck in the earnings situation that's not a typo. down 42% for second quarter estimates and that number is not rising at all. we're still seeing these cuts increasing

so, the market, the cuts have to stop and the market now has to start removing these numbers they start, they have to start getting better overall and the market has to believe that they're getting better and we have to have companies come out and say, guys, here's our guidance for the year. we withdrew it earlier and now we have some guidance. we need better clarity to keep the market going at this point a busy week overall. we have the imf and update their economic forecast for all those are worth and we don't know what is going on and people are still paying attention and we'll hear about the dividends there the big issue for the week and the russell balancing at the close which is one of the big events of the year. because everybody is indexed now, these rebalancings becoming very important we saw that on friday after the close. carl, back to you. >> all right, bob, we'll see you in a little bit. bob pisani dow is down half a percent although to his point mega tech cap continues to lead along with nike which does have earnings on thursday night

we're back in a moment just over a year ago,

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all right. welcome back the path forward, of course, continues to be a topic for us if you wanted to sell an apartment in new york city over the last few months, you haven't

been able to do that until today. robert frank joins us now with the reopening, at least, to the real estate industry very much unclear whether anybody is looking to actually buy, isn't it, robert? >> yeah, david and at what price. now, a big day for the nation's biggest real estate market as you just mentioned, this morning for the first time brokers can actually show apartments in new york city for the fist tirst time in three mos normally in manhattan you get $2 billion a month in deals so that's $6 billion in deals that did not happen during this pandemic the question, as you mentioned, how much of that business comes back and, of course, at what price. this market has a big climb back to get to where it was pre-covid. listings down there more than half sales contracts fell by 80% in may and that was a bit of a recovery from april. and then if you look at broadly speaking which sectors are going to be hit the hardest. well, it's really going to be

focused on new development this apartment on park avenue on the upper east side is part of a new luxury condo just came on the market. 9 of the 11 units in this building are for sale right now. this unit here is about 3,900 square feet, feet. four bedrooms, four baths. it was listed at $18.9 million now listed at 17 pbts -- $17.9 million. a million dollar price cut if you look at the recovery, the first stage is lower price apartments, 1 million to 2 million range. that's the first to probably sell that's the largest number of sellers since a lot of those people have stayed in the city, the wealthier folks, the high end of the market is probably still gone for the summer, and so that $5 million plus segment, apartments like these, are going to be the hardest hit. back to you.

>> robert, you mention the people gone. one question is whether they'll come back. part of that is the ability to sell their apartments in new york i have a question, though, on new development. there's been so much of it over the last ten, even 20 years. i would assume some things be get finished but it's hard to imagine there will be much new development beyond that. >> what's already in the pipeline is coming through and what's also interesting is what the workouts are going to look like a lot of these buildings have inventory loans, loans by lenders against the existing apartments' inventory that's expected to sell the question is how much of a loss at any are those lenders willing to take and what price are they willing to get this go? during the financial crisis, the big lenders were the banks they wanted to get that off their balance sheets quickly this time it's more patient capital. we could see a longer waiting game for this new development

before developers and listeneders just decide electric, we're going to clear it off that's the question. when are we going to get a meeting of the minds of the sellers, lenders, and buyers >> is it that i'm trying to figure out myself is what about the defaults and are there defaults in the 4 to 5 million or 1 or 2, and can you evict people >> you can't evict anybody in the rental side in new york until the end of august. that's frozen. nobody has been evicted. go around new york city, you've seen it. there are a lot of moving trucks in the streets of new york city and all that has been feeding through on the rental market the sales market is slower to come through but your question on defaults is really excellent basically all the defaults we've seen so far have been quiet. so unlike in the financial crisis where the banks publicly

took over buildings, there were defaults this time quietly developers are stepping away from their equity in the buildings the lenders are taking over. the question is what will they be willing to take in terms of a loss when they sell the apartments >> that's a great point. robert, of course, and we know today that home loan delinquencies across the country are at a nine-year high. we'll watch that as new york reopens phase 2. we'll take a quick break the dow is on the cusp of erasing what was a quick and early 200-point decline. we're back in a minute you can't predict the future.

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coming up this morning, at 11:00 a.m., brian chesky on potential ipo plans and a lot more that's coming lern upat othis morning. back in a minute ♪ [shouting] [clapping and shouting]

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i don't know it is -- i didn't know they had all that real estate worth watching, certainly. >> yeah. they do acknowledge it's not a fundamental call, but i did not expect an 8% pop on the note, jim. >> no. nothing about how gap stores is doing, and i think in the end that is what's been driving the stock this morning always reminds me of gap, j crew has a new line out when you go to gap stores, i call them uninspired i don't feel inspired when i go to a gap, except for the one in rome which was fabulous. >> tonight's mad money is going to been spiring. holy cow we have it we have jay snowden, erika nardini and dave portnoy because there's not a lot of

sports, his book is about stocks, dave has views, opinions >> he knows how to get people talking we'll see you tonight -- >> he's incredible nice. he said that about deutsche bank i'm so excited >> right we'll see you then mad money, 6:00 p.m. eastern time good morning welcome to "squawk on the street." i'm carl quintanilla with david faber and morgan brennan who will be joining us at this hour from now on. we'll get to that in a moment. >> existing home sales in may down 9 .7% to a seasonally adjusted annualized rate of 2 -- 3 .91 million units. it's a miss. sales were down 26.6 % annually. that is the largest annual drop since 1982 when interest rates

were around 18%. these numbers are based on closings in may. that is contracts signed in march and april during the worst of the economic shutdown from the coronavirus. so that's weighing heavily on the numbers. the realtor's chief economist says he believes this is the bottom for the sales market. inventory declined 18.8% to just 1.55 million homes for sale. that represents a 4.8 month supply and that kept pressure on home prices, the median existing home sale price was $284,600 that's up 2 .3% annually it's the smallest annual increase since february of 2012 when the market was just beginning to recover from the great recession. now, sales were down across the nation regionally, but worst in the northeast down 13% an interesting d

to condos are going worst single family doing better than condos and first-time buyers still in the market 34% of the home sales in may for first-time sales down sharply as expected in may, but the realtors are saying this is the bottom, and they believe it will be a v-shaped recovery. back to you guys >> a lot of information on u.s. home sales diana, thank you as we said at the top of the program, morgan brennan who you're used to seeing at 11:00 a.m. is going to join us on the 10:00 morgan, it's great to have you on "squawk on the street." >> it is great to be here. thank you for having me on big shoes to fill by sara eisen as well. carl, you can't escape me and my space talk we're doing that in this hour as well and i hope you had a good father's day weekend i'm looking forward to joining you in this hour to break down the market moves and everything else we watched so closely on a

daily basis. >> yeah. it's a great hour. >> exactly we look forward to it as well. it's not as though you're unfamiliar with either one of us you and i have worked together many times as well virgin galactic news for you there you go >> exactly >> i always enjoy what you bring to us. >> yeah. >> we can't wait to talk a little bit on the markets -- >> yeah. go ahead >> later in the hour as they sign a deal with nasa. let's start with the conversation with our market panel this morning good morning good to have you >> good morning. >> jeff, what do you make of sort of the tenacity of the

bulls in the face of rising case numbers and what does it mean for reallocation as people rebalance at the end of the month. does it mean we might be due for a dip in the short-term? >> it's possible i think what we're seeing fortunately is not really a second wave. it's still just an extension of the first wave in some of the states and countries where we continue to see a rising number of cases whether they're across the americas, it's not just states, of course, we're seeing it in latin america. we're even seeing it in india. these are first waves. the market is not pricing in a real second wave a continuation of the first wave we haven't seen a second wave in the countries that seem to have conquered the first wave of the virus. the latter part of the week, there's potential for a lot of volatility as the market battles positives with improving economic data with a weak labor market, with a market that's already priced in an economic recovery and they're rebalancing on friday to bring dislocations

to a market that's started to see a return to much more volatility the rebalancing along with the country classification changes this week could bring more volatility >> yeah. there's a lot of chop embedded in all of that christen, how about you? new york's phase two is getting a lot of attention we'll see how much pent up demand there is to get a haircut and go to dinner how do you weigh that versus what kudlow told us this morning about a potential rescue package, continued rescue relief out of congress and then the rising case numbers in the south? >> yeah. i think you have to keep an eye on the rising case numbers this is something we're closely tracking and it's going to be the determiner of volatility in the market so it's citi private bank index looking at the largest metropolitan areas that week over week case load to increase in infection rates

the one thing to keep in mind is to understand whether it's having a toll on the medical system and understand why it's under control so the week over week change is critical. the overall market performance, though, i think we need to look at what is driving the market performance thus far so we divided the world into what we call co-vid defensives and co-vid cyclicals co-vid defensive stocks are sectors and industries that have held up really well throughout this pandemic -- e-commerce, the major sectors that have benefitted and then cyclicals are the ones hit hardest the majority of the performance in the market, 70% of the s&p 500 market cap are those co-vid defenses so the behavior starts to be a little more rational >> yeah. jeff, just in terms of the

cyclicals, how do you think about that how sustainable is that? what are the riskss of the markets as we see the shifts underneath the surface right now? >> from a u.s. perspective it may seem premature to see aggressive movements but if you outside the u.s., the labor market is holding up well in ayesha and europe in europe you may only see a 1% rise in the unemployment rate. that's one of the reasons consumer cyclicals are outperforming things here. investors are underweight given their underperformance in the last decade. that could start to change as cyclicals begin to perform, particularly international ones that's leading to outperformance by international markets here. again, and really what has been the second half of this rally off the lows that could continue >> so does that mean you like international stocks better than

u.s. right now >> i think shd at least have a balance. i think when you look at your portfolio, it's easy to be underweight in international exposure that's a risk. the u.s. is overweight tech and health care. they've done well. they've been defensive the co-vid defenses we talked about. but the cyclicals could make a comeback if the rally remains intact haved have adequate exposure >> and christen, i know one of the things you point nut o. poin notes is the disconnect between the markets and the economy right now. and the fact that the market does tend to be a leading indicator by a number of months in terms of an economic recovery how do you see that playing out here in this health crisis fuelled situation versus previous recessions?

>> i think the old play book is hard to use. this was a very controlled response to a shock. we have not been through this before the idea that we've had this very quick v-shaped recovery, what to expect from here on out and how much the markets are discounting, it's difficult to say. i think going back to where we see opportunities in the market and where you should be looking to put capital to work, i do think if something hasn't sold off, it sounds simple, but if it hasn't sold off, it can't recover, and our clients and our investors tend of a strong home bias here in the u.s so i agree with some of the comments in looking internationally, looking to some of these markets that have been hit that actually have some of these co-vid defensive exposures that have been hit just as hard as the co-vid cyclicals that should not be greatly impacted regardless of where we're at in this pandemic. >> finally, jeff, one play book

that's been around for a few months is follow credit. whatever -- however the appetite is for corporate credit and bonds should lead you to general follow through on equities today whether it's the airlines or reports about fiat chrysler and raising money, i wonder whether or not you think that continues to be a healthy trend regarding investor appetite. >> it certainly is encouraging to see businesses borrowing and being able to do so as really record low rates and this could could be a business spending led cycle. that means different leadership from different groups. it is an encouraging sign, especially given the consumer spending could be lagging an seeing corporations putting some of the borrowing to work it could be a very good sign >> yeah. the cap ex, that would be a welcome signal if they decide now is the time to start dipping

into the pocketbook. thank you guys appreciate it very much. we'll see you soon >> thank you >> thanks, carl. up next, she's been called the wolfette of wall street. the youngest female trader ever on the floor of the new york stock exchange is going to join us next. stay with us so i'm gonna hold on promoting you this quarter. cool? drop the taco. get in the car. does this sentra feel like a compromise to you? wait, what...? the handling is good, right? no compromise there. nope! watch this... umm... b-brie...brie brie! rear automatic braking. so if this nissan sentra isn't gonna compromise, why should you? you're right! atta girl. the all-new nissan sentra. with more standard safety features than any other car in its class.

at 22 our next guest was the youngest female trader of on the wall street trader a

she's now working on a film about her experience with us is lauren simmons, former equity trader at rosenblatt securities. >> nice to be here >> we haven't seen you since you were on the floor. you are no longer working there. you did for a number of years. what was your overall experience like given all the first and seconds i mentioned. >> overall the experience was really great i really enjoyed my time on the trading floor, and i especially with rosenblatt securities, they were supportive. richard rosenblatt, to be the first boss for me out of college. it was an incredible experience. >> and in addition now, i mean, what would you tell younger people who are thinking about taking the path that you did obviously you are still very

young as well and moving onto new things, but what would your advice be, particularly given the conversation that's now taking place throughout corporations and society >> yeah. i say, you know, don't limit yourself even if you don't have a background, if you want to apply for a job, apply for the job i do get a lot of questions, how can i get on the trading floor i think the narrative of trying to get on the trading floor has surpassed. i think the new york stock exchange wanted to implement diversity and inclusion, it would have happened before the 228 years of it being around i think overall the financial industry has a long way to go, and i would love to see more diversity and inclusion, and not just limited to there only being white women. because i think when people think of having diversity and inclusion, that only means one demographic, but being inclusive of all i tell people take risks don't be afraid of going outside

of your limitations, and just believing in what you want to do >> given your own personal experience around this, what do you think are the best ways to forge the way through diversity in financial services? >> stepping outside your etwor group. i'm from georgia i moved to new york. i spoke to any and everybody who would be able to essentially move mountains to get me into a company, and so because i stepped outside of my immediate circle, i was able to find opportunity and have a place at the new york stock exchange. >> in terms of the wall street institutions, big and small, are you engaged in conversations has anybody approached you to learn more about your experience

to see what they can do to help implement more protocols >> since my time leaving the trading floor, i've spoken to corporations on diversity inclusion. that's one of my other jobs i do as speakers. they're interested in the conversation, and so we just oh v to keep progressing and really stop making plans and do we have made enough plans and what the importance of diversity. we just need to absolutely start doing it but i do hope with the bio pic, this will be able to reach a larger audience and people will understand the importance of diversity. >> lauren, i'm sure there are a lot of executives who are in charge of hiring, hr departments who are totally in your camp and want to do as much as they possibly can, but the talent

pools they're in and exploring, they believe don't -- don't have the supply are there nontraditional tall e -- talent pools you would encourage them to start looking at >> yes i think stop limiting the demographic to certain colleges. again, while i give the advice of people stepping out of their network group, they need to step outside of their network group and really try to get a bridge to be able to reach new talent and that's going to not look traditional from i'vy league schools and maybe not just looking in the metro, new york area but looking in different areas because people absolutely want to work in finance. and finance is the core of most industries so people are very much interested in being in that space. >> yeah. you're talking about getting your eyes and ears into corners of the country that wouldn't be historic right?

i mean, wouldn't be the traditional way of looking at new york city or the major cities you're talking about maybe going into smaller schools and smaller towns? >> yes for sure is there a lag >> all right laurn, thank you so much for being with us. we look forward to -- we appreciate your time today >> the etf spotlight, today the ticker bufo. not having a great year so far getting a boost this morning from the likes of a larger holdings virgin galactic. it's up big. it's up let's see about 12, almost 13% after signing a deal with nasa to start coordinating private astronaut trips to the international space station. we're talking about orbital trips here

you'll recall virgin galactic is sub orbital. the stock is up in today's trade. it is not developing an orbital spacecraft rather, it is going to be essentially the brokerage, the go-between in terms of finding, procuring, training the private astronauts that are looking to go to the iss. don't go anywhere. we're back after a quick break ♪ ♪ ♪ ♪ and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service.

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talk to your financial professional or consultant it's totally not the same without you. we miss your let's do this look and can't wait to get you back, so we've added temp checks, face coverings, social distancing and extra sanitizing to get the good times going again. we're finally back... and can't wait until you are too. after a volatile week last week after the averages eked out

a gain, taking a look at the s&p 500 and the dow right now. fractionally higher to start off this week. the s&p right at 3102. tech stocks and some of the big cap mega-cap tech names including those in the communication services lead the indexes higher right now also utilities, one of the best-performing sectors in the s&p. we'll bk teth bakbeacafr isre while the future of work remains a question mark, one thing is certain re-opening will be a journey. that's why salesforce created work.com to help at every step of the process, with tools like manual contact tracing to help prevent one from becoming three

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here's your news update at this hour. trump economic adviser is leading the white house this summer has set returned in march to help the president with his economic response to the pandemic now to sports nascar's investigating after a noose was found in the garage of bubba wallace. it happened sunday in alabama.

nascar calls it, quote, a heinous act. in new york city a statue of teddy roosevelt riding a horse and flanked by an african man on foot is being removed. calls for the removal have gone on for years and have come to a head during anti-racist demonstrations and a guitar kurt cobain played sold for $6 million carl, back over to you >> good lord $6 million frank, thanks a lot. appreciate that. restaurant stocks are in focus as new york reopens the phase two reopening. we have the outlook for some of the names coming off the heels of the summit. welcome back good to see you again. >> good morning, carl. thank you. >> it sounds like one of the big

take aways from the summit on your part was hey, the number of names it presented and b, the emphasis on digital which we knew was important, but we never realized it was going to be so critical >> it was a great summit what we saw and heard from companies, is really the companies that have huge on premise businesses, chipolte and casual dining chains like texas road house they've transformed in terms of their digital adoption and a lot of their competition are going to have a hard time coming out of this virus issue, they might have a major step change in terms of their engagement with their consumers but also their survivability and sales per restaurant it's not going to be just a positive from a competitive standpoint but you can think down the road and think about marketing and also even costs being better for these guys.

>> drive through, mcdonald's managed to save some 25 seconds after a drive through. they're trying to limit their menu how critical is drive through, and is it too late to get things like digital or drive through implemented if you're not already there? >> you pointed out drive throughs it's a killer format for mcdonald's it's been one for starbucks. almost 60 % of their stores in the u.s. have that -- are drive thru when you're sitting in your car, you want to order there in the drive through lane, and you don't see the up side on the digital or adoption in terms of convenience to you going forward, starbucks is going to start to reopen their stores and they're going to need the digital connectivity to make it more convenient for you to pick it up at the store front. we're going to see that one of the problems for mcdonald's and

starbucks is that breakfast day part that has been slow to come back here that's something we're very much watching a drive through is one of those formats that's been helping today in terms of the market share. it's not really going to have an accelerating benefit in the future like digital adoption >> you mentioned breakfast we always talk about breakfast as a byproduct of employment right? got to have a job to go to that's why you would stop somewhere for breakfast on the way. how concerning is that do you think it's going to reverse? i'm thinking of a company like wendy's which made a big splash into breakfast as the co-vid began to take place. >> wendy's has done pretty well with breakfast considering the fact that day part is down 25% more pap eyes has a big family order going home breakfast, you lose the urban commuter and energy. it's gone for a while.

it's coming back slowly. there's going to be breakfast wars like we thought, but it's going to be starting from a lower point going forward. mcdonald's is going to try to get it back. starbucks' guidance implies they intend to get it back with a help of a broadening digital platform it's harder at breakfast for these guys dunkin' including, and a slower slog than the dinner oriented players that are doing really well now >> david, i wonder, the companies, the brands that are company-owned versus the brands that are heavily franchised right now, who's in a better position i ask because when we talk about the cost of digital adoption, you seen prices for certain types of food rise all the uncertainty around the consumer, whether it's breakfast or just reopenings in general, what are the types of companies better able toweather the higher costs and move forward in

a meaningful way >> the company operated guys are ones, you're wondering are we dreaming high enough on earnings in 2022, and 2023. they're going to get share and have a higher percentage of business that's digital. that means interaction and lower labor costs at the checkout. it's actually looking really good think about the fact that labor costs inflation was 3.5% to 5 % going into co-vid. now coming out it's low single digits at most and even the meat packing industry is back up and running again. we're looking at lease costs with renegotiated leases, digital knicks labor inflation is lower the earnings for the company domestic operations is higher. that's something we think about coming out of the conference >> how do you balance that as people start to buy more food out at fast food or fast casual

restaurants versus the surge for packaged foods as people have been sheltering in and cooking at home? >> we cover them too in the near-term, meal-oriented companies are going to be doing better they have an opportunity to reinvest whether it's a general motors, they're all poised for up side through 2021 because of this i think the net impact on this, and why you might have, say, a chipolte doing well, and a texas road house doing well but the other companies doing welcomes down to share gains and frankly, the independents and weak operators in casual kinding and full service are closing stores. they may try to give it a go in the near-term. it means pain and suffering because they're not having a digital layer to put them over the top, and especially if we have a second wave this could be ugly for a whole slog of restaurants, 10% plus

closures is on the table >> did your summit do anything to push you to reorder your list of favorites >> the names that we tend to like are pretty much the same. you have to take some sort of flavor of risk in your thinking. so if you go for international, we would like a young brand. that's the part of the international that you're going to be getting the risk plus domestically, there's a lot of meal oriented stuff. wendy's is still cheap on free cash flow. breakfast is going well. and then you got to love the names like texas road house, chipolte is in that list, too. these are names that are going to have major earnings revisions potential coming out of it those are names we would highlight. >> so those are names you would highlight.

what would you steer clear of whether it's the threat of bankruptcy or closer closures? and i guess also do you think you'll see more m&a? >> we may see some more m&a. it might be a lot of smaller chains closing or selling themselves and companies re -- changing the signage to accelerate their unit growth i wouldn't be surprised to see some of that particularly on the fast casual side as far as the struggling areas, we'll have to see how things go for the coffee guys. there's no shame in the game being played by starbucks and dunking right now. they're doing everything really well it's going to be a slower slog in terms of the breakfast recovery and you throw on the list right now tim horton out of canada, we're just going to have to see how fast the second half recovery is and what their lingering effects are in terms of the breakfast and on the go consumer recovery is but those are companies maybe

doing everything right today, but just from a pace of recovery standpoint, we're concerned there. >> that's interesting. john george was on our air earlier this morning talking about his experience, watching his restaurants in other countries, namely china and europe as a play book for how the u.s. would reopen. i know he's in a special group i wonder has international provided any kind of learning curve for north america or not >> well, it's been uneven. companies and we heard this from some of the countries in terms of the recovery out of china that's been very rapid abi was talking about nightclub recovering to near par levels preco-vid. we're heard optimistic tales from people at the summit. china is a highlight if there's a low light, it's latin america. people are concerned about brazil we're going to be watching that for the likes of restaurant

brands and then europe, is somewhere between. we're heartened to hear what's happening for mcdonald's in europe they're near flat sales for the stores that have reopened. so at a minimum it shows how strong the brand is over there and how much the consumer is ready to go. europe was a net positive for us coming out of this summit. >> that's fascinating. david, there's a lot of information just now we appreciate that congratulations on the summit. look forward to talking to you soon >> thank you, carl thanks, everybody. >> david palmer. let's get to david >> thanks, carl. more capital raising this morning from some of the nation's largest airlines. let's get to phil who cover this is volatile sector of the stock market for us. >> we've talked about the airlines now in the mode of raising as much capital as possible to get them through the next 18 to 24 months we knew american would be

accessing the capital markets in some fashion and then yesterday they announced they're going to make four moves and through the four moves y, they hope to raise $3.5 billion that includes a debt offering of $750 million i'm sorry, 1.5 billion in secured notes. 50 million common stock offering and a term loan of $500 million. that's what american is hoping to raise keep in mind american is discussing with the treasury department a loan for 4 $.75 billion it is believed that they would likely put up collateral using the frequent flier program that would be the collateral base for that. and guys, we're going to see this for some time over the next several weeks if not several months united airlines, there's a report it is in the process of trying to put together a $5 billion package, offering, that

will go out to the banks and investors. what we're going to see is the airlines as much as possible saying okay, we know we've got enough to make it to the end of the year do we have enough to make it over the next 18 to 24 months? that's how long it's expected until we can say okay, there's some sense of normalcy or close to normalcy within the airline business >> wow 18 to 24 months. that puts it in perspective. and certainly it's the airline stocks leading the dow transportation average lower today as well. down .9% phil, thank you. >> you bet >> when we return, i test drive, yes, test drive, jeff bezos' dog, although not his dog. ayitr e eain it aftethbrk. st wh us

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welcome back to "squawk on the street." do you remember spot well, he made the slash in 2018 when his owner, jeff bezos tweeted a picture of them walking. you can see the picture. i had the opportunity to take spot, who is new and improved for a walk of my own it was via a computer with a help of spot's maker, boston dynamics they began leasing the machine last year. it began kicking off sales to u.s. firms just last week. do you want one of your own? be prepared to shell out nearly

$75,000. i spoke with the chairman and founder about the commercial opportunity for the robot like spot as well as the impact of covid-19 on boston dynamics business >> really, this is partly getting a product out there and partly an experiment in order to learn more about how you can use a robot like this. we think we're going to learn a lot by having a broad set of people tell us how our robot can fit into their application >> in terms of some of those skills and applications, what are the industries and types of businesses where you're seeing the most demand? >> the first one in the early adoptive program was construction site monitoring some of the companies have hundreds or thousands of simultaneous construction sites, and they send people around to monitor the status of those on a

daily or weekly basis. there's an opportunity to use our robots to do that. because they can get around and go up and downstairs and climb over trash that's lying around at the construction site, they're more able than other kind of robots to do that. there's a second force in the construction world they're wanting to use 360 scans and even 3 d scans so they can monitor what's going on and know they're on the right course and avoid having good rework and things like that that's one of the areas. >> what's been the impact of covid-19 obviously so many more people working from home. you're seeing remote issues on factory floors is it part of the timing for the sales release? >> you bet so we did a little prototype test with a hospital here in boston where they had a triage

tent we had our robot in there doing the first contact with the potential patients they would come in and the a doctor or nurse could do a remote interview we had automated vital signs measurements we avoided having to expose the doctors and nurses to the patients until they knew more and could decide how to proceed. but that has -- and we put -- there was some pr about it but that produced a lot of excitement and opened people's minds to the idea that you could use a robot like this to avoid exposure in dangerous situations so we've been doing some work with some nuclear reactors where we go into the radiated area and make measurements and do tests we've been working in national grids, power station right now they can't do inspections with humans except when the system is shut down and it costs millions of dollars

a day to have the system shut down but we can send our robots in there, because if something were to go wrong and we fried a robot, no one would really care. and so i think people are coming out of the wood work with ideas about ways to avoid human exposure to dangerous situations and i think co-vid has helped stimulus that kind of thinking >> so that is mark, the chairman and founder of boston dynamics talking about spot in case you haven't noted. this is a robot for industrial use. it is factory floors or nuclear reactors or oil rigs or now increasingly in places like hospitals on the front lines dealing with co-vid. but i think what's particularly notable about this is boston dynamics has been this company it was sold by google to soft bank a couple years ago. it's been in development around the robots until now it's leased about 15 of them, and they are out in the

field. the fact they're shifting to a sales model really sort of speaks to a company shift to a more scaleable commercial enterprise in the past they've developed robots for things like the department of defense. i asked for plans about that he said we're focussed as a company, an end spot, on the commercial opportunities the commercial direction is where they see the company going as they ramp up the efforts to sell the robots which basically start at 74 ,500 there's bigger product for enterprise use they're developing attachments like robotic arms for certain types of applications as well. and they expect production to ramp up to 1,000 in the coming months, probably by next year. >> that was fascinating to think of it. we thought about them as a novelty for so long. he's offering hard examples of

practical industrial applications and you can see how that makes sense even though it is a little pricey, corporations can definitely use them in certain situations that's great stuff from boston dynamics we' we'll take a quick break erased an early deficit of 200 points on e thdow. going for the first gain in about four days. we're back in a minute ♪ ♪ can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information. talk to your financial professional or consultant 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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welcome back, florida among the states seeing a surge among cases. our next guest is two weeks in peter lopez joins us now

you have done through a lot of effort to adapt to the new conditions is it having an impact at all on business right now >> we have been fortunate enough to say that we can offer an environment that the bests can really feel safe in. we have 340 foot of dock space we put tables eight feet apart everybody seems to be enjoying it, getting cool afternoon showers that cools everything down we went above and bond with our straf to bring in a peroxide based sanitizer that is above the standards. we have been fortunate enough to reopen successfully.

>> and you mentioned so many different things that you have done from printing high gloss disposable menus, dividing up kitchen duties. >> it is a huge impact but knew we had only one chance to open up we went through spending almost $26,000 on cleaning supplies, materials, and all of the training we did with the staff it is taking a huge toll on us, the dispozble msable packaging there is no price you can put on making the guests feel safe. we want to just make sure everyone feels safe.

>> i'm curious what is your margins right now, how how sustainable is this? >> we have such a huge footprint. we have an acre property they're more than eight feet apart. more than walking space. they must wear a mask when they come and dine in with us and they have to wear a mask when they get up. at their table their welcome to take their masks off it is the cost of doing business we want to maintain our staff and guests >> has it been busy? >> fortunately yes south florida is a lifestyle and

you can't keep fort. lauderdale. we had a moral obligation to shut down. we wanted to minimize any chance of spread. we have been around for 38 years. and everybody was just excited to come out, and everybody feels safe being outside and we're very fortunate for that. >> yeah, but it is going to get awfully hot there, you mentioned the heat you know i just wondered is that a concern at some point do people feel like we have to be indoors and does it bring other brisks to it >> absolutely, absolutely. indoors we're at only 50% capacity indoors outside everybody feels safe the heat is part of whatever

south floridans are used to. the heat is not too big of a fan, but we have a lot of frozen drinks to help >> i'm curious, in terms of the reopening efforts we have seep in florida and in that specific part of south florida, as we keep our eye on the increase on coronavirus cases and what that means for hospitalizations, what is the sentiment like? are people wearing masks are numbers ticking up for case load >> as a community we all know what we have here. we also know that precious value on life.

and sizing, and we all shared great practices with each other and we're all trying to do what we can to make sure that we're doing what we can here but still make sure that we're all safe and our guests and staff and consumers are all happy. >> finally, was it helpful, are you going to pay it back soon or do you hire all of the employees you need >> we were able to hire back the employees, we lost a few, about 15% that had to make some concessions. when we shut down we didn't get our ppe until about eight weeks later. we applied for it and it was an

ard arduous process. we got our ppe towards the end when we were able to to reopen but brou order, palm beach, and dade county are not on faze two because of all of the restrictions and the number of cases. we felt like it was a safer move to open us up. so we looked at what the first faze was doing and we learned from a lot of their mistakes we talked to businesses up there and what they were doing and how they were operating. we went up there to check out some of the practices and some of the struggles it is a total new way of doing business >> it sure is. and we appreciate you sharing some of your insights with us,

peter. good luck, stay cool carl, other to you >> thank you, we see you later on as the markets are saying the same thing as you're listening to that conversation, the reopening of the economy, at least 20 states in this country, new york city going to phase 2 the dow is down 200 and now back in the green one of the things we look to, and it was apple and micro soft that were leading the way on this day >> apple and microsoft at