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 1.5

trillion another half trillion since then is nothing to news at. especially important week and i know we will get into this later, it is so whether or not they have been trying to build out a effort with iphone sales slowing down not due for the same kind of growth they saw kind of over the past decade wwdc important because of a dust up with a major developer they have been having in the past week not major because of the size of the company. we might be reaching a detaunt in that. and i know you're bringing us a big interview with brian chesky this hour. >> that's right, i'm really excited to be part of this additional west coast coverage and to that point i sat down

with brian chesky over the weekend and we talked about the travel rebound, and what the business likes like in this post ko-vid world take a listen. >> if there is a shut down or multiple shut downs, if communities are shut down, we will be okay we cut a he looks like dollars in marketing >> brian was very cautious about this it is a pretty incredible recovery people don't want to get on planes right now it is pretty remarkable the bookings they have seen are growing on an annualized basis as they go into the jouuly 4th

weekend. you still have to wait for international travel and business travel to come back to see that rebound >> yeah, you know i mean when i'm thinking about traveling even domestically i prefer to stay in a space that i can control. i know there are not other people going through a lobby, maybe he will see some upside from the efforts to reopen at least if people can control their environment. >> absolutely. it is supposed to be the summer of the road trip, right? and air bnb is having trouble getting the cleaning protocols in place they can standardize them across properties and chains. they still rely on the host. it was an hospital mystic note they did a lot of streamlining

of the business. what if we see infections rise people don't want to travel in their cars any more. he says they're prepared for that >> okay, that is an important bit of sound that i'm sure we will talk about going on in the meantime, getting to amon jabbers >> yes, this is a new ruling on this issue of disgorgement and hour the fcc can process that. what they held this morning is that the fcc is continuing to go about getting disgorgement from ill gotten gains, but they must do it equitably and no more than the total of the ill gotten profits and the profits must be returned to the victims.

but the supreme court is upholding the ability to engage generally but just with those two caveats in mind. that will change things a little at the fcc and particularly probably around how they calculate exactly how much the wrongdoers ultimately oh back to the fcc and those defrauded. carl, back to you. >> eyes are glues on the fcc for a number of reasons this week. let's bring in larry and james to talk about where we are larry i want to start with you i think reading from your notes you're cautious to bearish which if i'm not mistaken is a bit of a switch for you >> i think there was three problems one is the overall market problem that we're in high valuations and looking at the political vetting markets, the

odds are that we will get the democrats in, and i think that is the best analogy is 1976 with jimmy carter so i think we have multiple problems the second thing is i think we have income statement problems and we're about a month away from earnings season and i think that the earnings report is going to read better than they actually eat when people are starting to look at them i think we will have problems in two areas. first is in the revenue area and let's take google as an example. most people think that google is impervious to any kind of problems but a lot of their advertising is in the travel vertical and that vertical is being decimated and the advertising i think will be down. we have no idea how much clearly it will be down and that

will affect rev nices. next is incremental costs. their engagement in planning is different than it was on april 1st. and costs for most companies have increased i don't see anything good going on in the income statement and the other problem i think is the product situation. the consumer will be under pressure we're not going to see the economic growth that we looked at just today healthy company like auto nation using technology, and technology has been very help informal -- help informal this environment the auto business is pretty good right now and people are laying them off in the distribution

channel. so i think we will see higher unemployment and slower economic growth and i think short term this will be bad for multiples and bad for earnings, and until we get a vaccine, i think the basic direct of the market is down >> and that is not something that you're comfortable making a call on? >> no, i have no expertise the virus is affecting my behavior i don't want to get on a plane i don't feel safe taking a road trip and i'm sure i'm not isolated in my beliefs >> i want to dig in a little bit more on some of the specific things that you see. and i know that you mentioned shopify. that is a companying that i

think is so interesting, it is sort of the intell what are you watching farce metrics? >> i think that okay, james, we're going to work on your audio. it seems like we lost you for a moment while i wait to get back to james, larry i wonder what you think is going to be the impact of the social disturbances that we have seen and how that ends up affecting the economy as places start to open up. largely they seem to be peaceful

>> i think they are largely one off. we'll see the impact in the second quarter i was very encouraged by the way. not in terms of the crowds, but the way the protestors conducted themselves and the authorities conducted themselves i thought that was very encouraging and i'm pretty sure that is something that is -- i think shopify is more interesting. i looked at it pretty extensively. the market cap is $ 66 billion the volume of dollars of the music industry globally is $19 billion. and this company makes no economic profits i'm an all-time guy. i like cash flow and revenues. >> you're talking about spotify,

of course? >> yes the shopify is nearly the same thing. but the law of large numbers gets these people. the valuations in thing that's are attractive in the stay at home area have gotten to levels where a reasonable cash flow investor like myself, particularly if your bullish on the vaccine, and i don't think there is any way you aren't, i think ewe looking at peek multiples and earnings be and they are generally part of the multiples, i think investors are treading on thin ice, particularly inexperienced ones like we're getting on robinhood

and that sort of thing >> good to get your temperature on this one especially at these levels we don't know the answer to so many of these outcomes larry haverty joining us today we're going to have a rlot of apple news today tim cook on nbc and also coming up in dc >> this developer show feels different. it is taking place against the backdrop of an increasingly divided country. and time cooke talked about the role hethinks the iphone could play in capturing these significant historical moments >> we're humbled by it some of the most dramatic societal changes have occurred because someone captured video.

>> cook is right, the iphone is everywhere and part of the popularity is due to developers. they said they should bend their time, money, and effort building for the app. they have built more than $155 million. as the conference kicks off there is more attention from overseas here at home over a new e-mail app called hay they rejected that app and apple has now apparently approved a new version of that app, and that is diffusing what is an ugly fight with david hanson and refocusing his attention on this conference today none of this seems to be

worrying invisitors. now it is on track for it's best quarter, but it is critical. they think it represents 30% of total services >> that relationship is critical and tenuous does that open up apple to more? do they think that can win contentions? >> apple has $23 million developers it is a big vie verse community. they said one problem they had is that if you down loaded the app it won't work. and now they're going to off a

new free temporary version i think that fight had started to snowball a bit, right and you saw match group came out to criticize along with epic games. and you saw prom nant lawmakers criticizing apple as well. they said that apple's app store fees, i think he said it was highway robbery. and now they're bringing the headlines back to what they want and how much money that developers can make on it. >> the biggest potential downside in this wwdc, i think, is that developer fight. we will have him on again tomorrow, and make sure you tune in for all of that

i think the potential upside is the rumor, the word, that apple is working on it's own on-base chips for max. and they had it on for quite awhile, they're putting their own chip designs into air pods and beats products this apple cpu would be a huge leap forward, perhaps, if they work for apple's margins, but it is how quickly they will be able to push these into the mac line. it is something that certainly i will be watching >> yeah, i think you're right, john that would be a big hardware chance as you point out apple designs the chips and they're going to make the from their own proce processors to their own on base designs. you have to give those

developers now time now to hospital miez that software, but some of the analysts are excited about their transition as you said if it works, it will certainly mean that tim dock has more control over the product, it should mean better performance and better cost to give the machines a goose when it comes to margins. that will certain i will be a big headline >> looking forward to that now has we mentioned and next, former marketing vp at apple coming up. stay with us ♪

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welcome back, our next guest wants to kick start real change. recently taking out a full page ad in the "new york times" called "dear white corporate america. omar johnson joins us now to explain, good morning. >> good morning, how are you >> i'm doing well and i hope you are, too i read this piece and i could relate to a lot of it. you said you're getting a lot of questions in the last couple weeks.

people saying what can i do to address this and i think a key question is how much is companies wanting to feel better, wanting the heat off of them, and how much of it is them being dedicated to sustained cultural changes in their organizations. what are you hearing from the people you're talking to >> let's start with my objectives my goal was simple i believe in businesses in america solving business problems and i wanted to make the black inequality problem a business problem when you look at what happened with george floyd, i think all of the lives taken in this country, and a lot of them are friends and partners and they all say what can i do. but when you start to pull on the yarn, it's more than what do i do, but that felt like a band

aide, as you pull on the band ai band-aid, it was curiosity and fear other executives wanted the same answers and that's when i wrote the letter and the whole letter was togra some attention and starting the process of converting this black inequality problem into a business problem >> does corporate america, if they're going to embark on this, do they need a new philosophy around diversity it seems to me we have move std out of affirmative action. if we have equal candidates and after 30 years it can fix it does there need to be a new argument or justification?

are companies thinking deeply if you have about what that justification is >> we have been deeply engaged in the play book, right? there has been a lot of initiatives. that is exactly what our list of actions we're recommending to the executives -- one is honest measurement and publishly results. taking really honest inventory up all of the key decisions making visitor kals and also think about the key functions outside of hr, and we're not just marketing education. and looking at soft air. what are they saying what is the condition of your

cultural black employees you can get real feed back on what is happening with your black employees, and the last thing is taking deliberate action now it is action that you can take inside a company outside of a company, through how you invest your dollars but also in how you actually start to focus on elevating those people in their companies right now. >> you mentioned diverse it and inclungs initiatives big tech has put out a diversity report for six years there is low change, single digit increases, even flows, so how do you get there, you mentioned something looking at consequences how do companies do that

they are some of the best engineering and operations and design when you step back and you look at engineering, it is 67% white, 21% asian, 6% his fanic. when you look at jobs in science and engineering, it is only 5% black. it is a huge math problem to me. but when you think about who is amazing at solving math problems, engineers are. i believe the companies, the engineering the muscles and fixing the issue, and today the numbers stay where they stay i don't think it has been a more than that. they're asking for them to be more conscious of their issue.

i think they will start to see some change. advocates of equality about whether or not you would rather have more inclusion on the board, or more inclusion in man prazere yal roles. hi really think it is all key decision making levels i think it is down to the management i was able to track my career it is something that i have been talking to white

executives storm they didn't see me as a number or a stat but they engagement. my career has been shaped by executives that engage in leadership >> i have to ask since we're talking about retaining and growing black employees, you're a vp of marketing at apple 3.5 years or so. it is one of the biggest and richest companies out there, why couldn't they retain you you're not the only black marketing executive that i'm thinking of. there is another who was on stage at apple events and left the company. what is the challenge there? is it a culture issue? is it just the issue of your interests? >> i think, look, my decision was a very personal decision i don't think it had much to do

with apple at the end of the day it is a lot of functions at the end of the day i really believed in the company. i think apple, i think apple will see it and start to address it it is relentless it is a business perspective so i think it is a function of focus. i think me personally, i love my life here in l.a when you think about apple it is in a different place for me it was a very personal decision at the end of the day i believe it is a very different company especially now i think consumers and employees are asking deliberate questions so i'm optimistic. >> all right thank you for being with us, something that we will for sure

continue to talk about >>. >> pretty flattish action on the indices this morning when we come back more of the interview. we're back in a minute

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gilead is going to test an inhaled version of remdesivir. and disneyland going to reopen in phases they said they would reopen their domestic locations delta airlines will restart service between the u.s. and china. and virgin galactic has signed a deal with nasa to train ast astronauts for trips to the space station. that is our cnbc news update for this hour. "squawk on the street" continues after this after this kpts

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welcome back to "squawk

alley. air bnb is starting to see green shoots of sales. they are seeing a rise in certain states >> i think one thing that i larned is no not get in the business of predicting the future so what i can tell you is the following. beginning with march, travel was a strans, and you spent 12 years building the business and lost all of it in a matter of four to six weeks. what happened in the last few months is something else entirely people are saying they want to get out of the house, they want to be sar, they don't want to be on airplanes, they don't want to cross borders. they're willing to get in a car, drive a couple hundred miles to

is a small community where they are willing to stay in a house because of that our business has not recovekocoverecovered, i wab clear, but something remarkable happened they are without any connection. they want to be connected to each other they thought it would be lock downs. >> will there be lock downs and more businesses closing and communities shutting down to outsiders? >> we reduced our costs, it was

tough. we're saying we're hoping for the best, planning for the worst. there are multiple shut downs. they cut down on a billion dollars of marketing and we have been resilient we have longer term says a lot of our bookings are stays longer than 30 days. we have not lost any host on our platform differently we have more hosts today than when covid started. so the participant thing here is that the market is resilient the community is resilient the following, travel as we knew it was over. not all travel, just the travel that we knew is over and it is never coming back.

no one quite knows what it will look like. i have a couple thoughts i think the world population traveling to only a few cities and staying in big tourist districts, i think you will see a redistribution of where they travel they will travel and be near by for thousands of local communities. >> we're definitely going to not have -- we're not going to -- we had fairly ambitious plans, and we're adding a lot of new realization. i thi -- real estate. work from home can be work from any home you're going to see redistribution on the table. that being said we don't know the full cost of entire work forces being being remote.

>> we're certainly done with the layoffs. we said there will not be enough layoffs we want to have enough money to take care of people and do everything that we can for those departing. we cut like a billion dollars and we're not doing any marking right now. we're not spending any in advertising. our business is probably a little more efficient. there is still opportunities on aws and customer service to get more efficient in how we use data and handle contact. we will continue to make the business more efficient, but the business is definitely lean at this moment. >> how are you thinking of the ipo? >> was on track, then the crisis happened we focused our efforts on other things, and at this point we're not ruling out going public this year but we're not committing.

we want the world to be ready, and that means travel will need to see more of a sustained recovery and we need to weigh our options. we're not ruling anything out. >> are you encouraging, though we have seep a number go up pretty successfully. >> something might be around the corner, so maybe we have to start living in a more measured world and not get too high so i'm trying to take that advice we're going to play it by ear and be thoughtful. >> they said that it was harder for guests with african-american sounding names to book rooms on the platform >> what you're referring to, let me talk about that, for a company like ours discrimination

is an existential risk it is an obstacle to people connecting we developed an action program we want to measure it. the problem is how do you actually measure the racism and discrimination on a tech platform we worked with civil rights groups including color of change and leading privacy groups, and what we did is built the system that we launched last week we allow people to opt out, but they're informed that they're otherwise going to be in the united states, that they're going to decouple their account for their photo and their name, but we're going to track them as a co-hort. we're looking at a large set of users. we're going to use this to

measure the amount of discrimination and bias. we will report on it publicly. and if we're making progress we're going to open source our learning to other companies. we don't want this to be proprietary. my hope is that we use the data to actually design a more just and equitable platform i think the days of internet companies saying we're just platforms and we're immune systems is over. >> are you making a distinction between platforms like air bnb, and moderating some content, and is facebook not doing enough in your opinion >> i'm making a distinction from the old internet an the new internet the world that i came from, all of us, the systems that are hands off, that are not a responsibility, those days are over i think every internet company

understands that we're all going to get pulled into the future. we can caulk in or get pulled in, but the old world is over. >> carl and john, the air bnb that we're seeing today is different from the wurn we saw a few months ago and carl do you m remember sitting onset and striking a deal to essentially create hotel suites. now they're scaling back, and you have to wonder is wall street going to see that as a valuable company as it was a few months ago we know it's valuation has dropped from over $30 billion to $18 billion, so when it does go to market, it will be interesting to see how wall street receive is it >> it is so striking to hear him

say that travel is not coming back, but that doesn't mean that business is coming back to where it once was. >>. >> absolutely, and he is taking a big step away from hotels, and one thing he said that was so interesting is that longer stays on the platform, he classifies that as more than one month have doubled since before the pandemic so when you think about what you want to do, where people want to go, they typically want to get in the car, drive somewhere, maybe stay there, not for two weeks, maybe for a month or more than that. so this disruption is not the same they say you're in a deal to sign these year long leases or more >> a couple years ago, maybe

less than that, thagt -- if he is saying that travel as we knew it is not coming back, that raises the question of how do you value air bnb. he is even saying, look back at their past results and say they have much bearing on what is coming in the future so it puts a little extra on. who knows the valuation they will get leading up to an ipo. >> absolutely and i think he didn't want to say one way or the other that they could go this year, they could wait, i asked him about hotel tonight. does it really make sense like the indian discount hotel chain, do they make sense if you're pulling back to focus on your core he said they still love hotel tonight if they're saying that

travel will look very different. >> thank you for bringing that to us. when we come back we're going to talk some amazon, how exactly is that possible? we're going to talk about that after the break.

(music) anncr: give customers access to precisely what they want, when they need it the most. with adyen, the payments platform that delivers convenience for all. adyen. business. not boundaries. good morning to you, john. 90% of the growth in e commerce will see a spike in residential deliveries it shows the impact of the shift that we're seeing.

afterwards the sales nearly tripling capturing a third of the industry sales peapod and fresh direct losing a little bit of market share as industry-wide deployments were harder to get. you see the growth after that more than doubling door dash growing a market share when restaurants are closed or only offering takeout. turning now to packaged delivery, amazon with shipping gains. the company also hired more than 175,000 workers to meet elevated demand when it comes to overall e commerce with the post office

delivers more than a third of all packages but with amazon prime members steadily growing, you have to think that dynamic could change. back over wondering what most recent data is telling you? we've seen an acceleration of the trends, especially grocery delivery as the economy begins to reopen, are people still going to amazon and stain cart for groceries? >> groerry delivery while way elevated year over year, it is starting to decelerate a little bit. food delivery is starting to pick up a little bit it kind of gives you a sense of where consumers are seeing their ability to kind of get back to quote/unquote normal grocery delivery more people are thinking maybe i can go back to the grocery store but it appears a lot of people are more hesitant to go back to restaurants. >> do you have a sense of how much amazon's efforts to deliver its own packages have

accelerated or benefited during this period? i mean as their share has increased and demand has increased i imagine it might have cemented some of the changes they tried to make >> amazon has been steadily trying to ramp up its ability to deliver its own packages we've seen the blue vans in our neighborhood amazon before the covid-19 pandemic it purposely was trying to take a bigger share of delivering it owns packages and become a shipper in its own right. >> frank, thank you for that still to come on the show, what to expect from phase two of new york city's reopening today. live on the ground with that in just a moment. stay with us

list of all-time highs include adobe, etsy and netflix, up about a percent and a half today. up more than 40% since the start of the year. other names doing well too, snapchat and pinterest, rising in today's trade more "squa aeycoinwkll" ntues in just a couple minutes. don't go anywhere.

monitoring the progress of phase two of new york city's reopening today. contessa brewer is watching that

in the big apple hey, contessa. >> hi, carl. how about some lunch to start things off with today. this is stone street it's famous for its cobble stone outdoor tables here and it's a hib of activity. typically frequented by wall street types for lunch and happy hour and for the first time in three months the tables can go back out in the phase two reopening. most of the workers around here are still at home. still, today's the day that offices can begin bringing employees back goldman sachs and jpmorgan are starting the process and hey, if you've got long hair or gray roots, new yorkers can now hit the hair salon thank god. some in-store shopping is now allowed. macy's threw its doors open less than an hour ago look at the crowds outside waiting to go in there of course the city is asking businesses to follow cdc guidelines for social distancing and sanitation masks are required in public

where social distancing might not be required. but we've seen in other states and cities that the guidelines are not strigtsly followed and cases are spiking. a tough weekend for the nation with more than 36,000 new cases reported texas, nevada, florida, arizona all saw a daily number, a record of daily new cases last week, and new york alone, the city, has far more deaths than any other state. the city still seeing about 100 cases per day. we're hearing that contact tracing is paying off now. some 84% of people who have been contacted by phone are willing to share their contacts and that's an improvement from what we saw at the beginning. with all this in place, guys, what we'ring here the mayor say and the governor say is they're going to be watching to see whether the cases ramp up because in that case, they would reverse course for now, they're setting up the

tables on stone street and we have to see who is around here to come down and have a bite >> what is the traffic on the sidewalks in the streets look like to you? we don't expect a lot of people to be going back to work immediately but is there a little something happening out there? >> there's people on the streets but i was in a neighborhood adjacent to this over the weekend i was stunned how many people are going up to a door ordering their drink and plopping on the curbs. some brought their picnic blankets and set them up on the street i saw people who brought their own lawn chairs. they get the takeout and sit right there. even where the outdoor dining wasn't happening officially it was happening, jon >> yeah. there's no question that manhattanites will adapt in ways that maybe they -- none of us expected, but it's good to see at least some progress sigh the strand book store

tweeted we missed you with a picture of some people outside waiting to get in. we'll monitor it with your help. contessa brewer looking at phase two of new york city's reopening. something we've been waiting for for quite a long time. busy week on the way stress test results later on nike earnings on thursday. for now let's get to the judge at hq. >> appreciate it, carl thank you. welcome to the "halftime report." nasdaq going for its longest winning streak of the year how long can tech keep running we debate that today with our investment committee joining me for the hour, joe terranova, john najarian, steve wise, liz young, market strategy and cnbc contributor. right to the wall, stocks have been muted we have seen a bit of a pick-up. the dow up 22, s&p is up a fraction of five points. nasdaq was at 10,000 even. there we go right there.