there's election risk. imf downgrades their forecast for 2020. right now, jon, only 15 s&p names are green and none on the dow. >> is that all as usual a lot to factor in here with that, let's continue the market conversation bring in lori, head of u.s. equity strategy at rbc capital markets. lori, good morning we hope to have james mcdonald as well. we're going to work on the audio there. lori, you have recently done a survey of investors. you are picking up on some bearishness cropping up. i'm not sure how to interpret that because on the one hand bearishness might imply that there could be pressure to go lower. on the other hand that might imply that's healthy after the kind of run we had,ed up you would expect to see

somebody to sell >> if you go back to our march survey, what we saw was that the level of bullishness on the stock market was one of the highest readings we had in the history of our survey. that told us things were scary in terms of fundamentalings and news flow. they sort of knew inherently this was that point in time was the right time to buy the market they stepped in to help contribute to the rally. now what we see it's not that everybody is bearish the bearishness is starting to pick up where where we were last quarter and the bulls have fallen down sharply. now, what is extremely in our survey is the percent who say valuations are expensive and that hit a new survey high what's that telling me as the tape weakens here, the news flow deteriorat deteriorates i'm talking to institutional investors that are not inclined to support this market the way they were in march i take it as a bearish read. less about the level and shift in sentiment we're starting to see and the reasons for the shift in that sentiment.

>> james mcdonald, herculez investment ceo and cio, want to get to you now there are a number of tech stocks you have your eye on, including facebook, netflix, amazon, and some we could call them challengers coming up in some of these categories roku, shopify, which is a stock i love to watch. what do you see happening here is this bearishness going to affect everybody equally or some more than others >> it's important to understand where we are obviously we got to this point we're talking about a market going down based on covid. if you look what's happening, gold is at an eight-year high, new high today we've seen only 2.3 million cases in the u.s that's 7% of the population. dr. fauci suggests that over 40% of people who have it might not show symptoms and might not transmit this market is going to come down covid is going to stay around. we're not going to see any vaccine until late 2020, early

2021 and so valuations are going to come down in the former winners. the fangs were great if you own a fang, if you own any of those companies you're happy. if someone hires me today, igot to make money from them going forward, not what happened in the past so we have new fangs there's a new amazon in africa called jumia new one in latin america these companies are at the cusp of where amazon was seven, eight years ago. we have this double effect where the covid situation has halted economies and we can get these companies at great discounts obviously when you're talking about africa and latin america, you're talking about populations little behind us in terms of their adoptions of technology. great, great buys in terms of the new amazon in terms of what's coming in the future for u.s., we love american power everything that's transmitted by data 5g will be the monsterin the tech space american tower has a $28 billion guaranteed contract inflow from companies like at&t, verizon, t

mobile that's a great one. we talk about google being a monster. google had its first decline in growth in ad sales for the first time in ten years. we like the next google as trade desk it's a digital ad monster. the best artificial intelligence out there. we're looking at a 37% for advertising revenue over the next five years. 5x growth to 2 trillion. shopify is a great company as you mentioned. all of these unemployment numbers are real people. these people are going to have to go find new income in small business has always been the engine of america. we like square as a point of sale monster for those people. we like shopify as a set up your business and then also we also, you know, in my old days it's funny to talk about technology. i used to watch television when there was no streaming you saw commercials. you got spoiled with streaming incomes are coming down. and so, this streaming concept is going to stay but we like roku for going back to free tv, right? if you can stream content and

get it free, roku, we like roku to pick up revenue there in china, we like momo we all need love and tinder and match.com drove iec stock price here in america and we think momo is the next tinder or match.com for china. someone hires me, i can't put them in the fangs. we have to look ahead to what the next things are and that's our list >> that's a nice assortment of choices and candidates right there for names to watch hey, lori, we got to give you some credit because you had some healthy skepticism about the rally for the last actually several quarters. >> yep. >> but it's not like this volatility we're witnessing today was not unexpected people have been talking about rebalancing month end. to what degree do you expect investors to be there to catch a dip if we have a reasonable draw down >> well, i think what we're seeing on the tape today is a lot of things we figured out in the survey that investors are

worried about are coming to fruition we asked investors, what are things you're worried about? what are things that could potentially take this market down a rise in new cases frankly. a second wave of the coronavirus. we're getting very bad news there. that was something our survey participants told us would make them grow more cautious on the market 2020 election concerns there's been some interesting polling data that's come out today that is spooking the market a little bit. you know, i think that the problem is that in a period of excessive valuations you don't give the market the benefit of the doubt. and we're seeing sort of investor's worst fears come to fruition today so what we did see in the survey is that most of our survey respondents think you'll see a 10% correction at some point in 2020 a lot of disagreement as to exactly when it would happen but bottom line, people were braced for this. and it's hard to really see the institutional community stepping in and supporting the market >> james, how do you protect yourself against that potential downside

>> we love the situation because finally markets are making sense. we have seen this market rally off the bottom imf just downgraded zbloe ed glp by 40% we haven't seen that in any crisis before. it makes sense the market comes down we're doing short and long data put options on the nasdaq 100 and russell 2,000. we're identifying the sectors that will have weakness with 5 or 10% allocation in the a growth portfolio offset any losses on our upside we love this situation finally markets are making sense. and we're excited for our put options. >> all right yeah got to know how to protect your flank. james, lori, thank you >> thanks for having us. meantime, guys, we're watching disney. some reports about some petitions to delay or kans it will reopening of disney world in florida this time for that we'll turn to julia boar steen. >> good morning to you over 7,000 people have signed a

move on.org petition calling on disney to delay opening the theme parks and resorts. until covid-19 cases are no longer rising. the theme park which employees 70,000 people in florida had been planning a phased reopening starting on july 11th. this petition is asking the company to reconsider the opening of the theme parks for now until it is no longer posing a risk of spreading covid to the working cast and team members and their families and the guests now, this comes after on friday we heard about push back to disneyland reopening about a dozen unions that represent some 17,000 disneyland employees here in california, they wrote a letter to california governor gavin newsome last week saying they believe it is still unsafe to reopen the park we have reached out to disney on this and last week when we were talking about the pushback to the disneyland reopening in

anaheim, disney shared some of the things that they are doing to ensure the safety of the park and also of the cast members as well as the visitors and they said they look forward to continued dialogue with unions on the extensive health and safety protocols following guidance from public health experts they plan to implement as they move towards the proposed planned reoemg. disneyland is opening later than disney world disney world is a much bigger property we hope to hear more from disney itself on this pushback from their employees. but a really interesting conversation here. obviously they want their cast members, as they call their employees, as well as their guests to feel safe. this all comes as we have seen an uptick in those cases, particularly in florida. >> all right, julia. thank you. as we head to break, keep your eyes on shares of dell and vmware this morning. dell is exploring potentially

unloading its 81% stake in vmware or buying out what it doesn't own already. that review is in its early stages, but definitely something to watch a lot more "squawk alley" still ahead. stay with us (vo) at audi, we design cars that exhilarate with versatility, whether on the track, or the everyday drive. today, that philosophy extends to how we connect with you. we call it, audi at your door. whether a remote test drive, shopping, trade-in, or even service pickup, audi at your door can do this and more at participating dealers. the premium audi dealership experience, on your terms. audi at your door. ♪ yeah ♪

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session lows down almost 600 on the dow back to 25.5 essentially hanging on to 3064 the worst selloff since the dramatic june

11 selloff of just a couple weeks ago. in the meantime, after reopening in arizona, our next guest has voluntarily closed his restaurant and restricted service curb side with no plans for now of reopening dine in the owner of aioli burgers join us this morning. we appreciate the time very much thanks for being with us. >> thanks for having me. >> tell us what the mood is right now in arizona obviously you're seeing something in the data that may be the state or other business owners are not what's on your mind? >> honestly, for us, i believe it was about june 13th we had a weekend where there were a lot of restaurants, several local restaurants that were closing here due to the fact of having so many cases. and for us it really was a no brainer. we grew a lot of takeout business during having to be shut down any ways so, we just had to go back to

curb side. we have our patio open, but it's arizona. so it's 110 degrees out some days, even with the misters. we just decided for us it only made sense to have both our locations curb side takeout only and keep our staff and customers safe >> is there a level at which things quieted down in terms of new cases or hospitalizations where you would switch your stance >> absolutely. we were taking a lot of precautions in place we were practicing social distancing closing down some of our dining room tables, moving them around. but we're an 1,800 square foot restaurant no matter what, people are going to be close. for us, we didn't want to get into a position where we were the new story, if you will we would rather been proactive than reactive. and i think when things start getting more calm and we start

understanding where these numbers are going towards that downturn hopefully, that's where we want to be when we open the dining room back up. >> kyle, good morning. it's jon fortt i wanted to ask you about what you're seeing there in arizona just among customers and sentiment. it seems like couple weeks ago we were hearing, well, arizona is not new york. texas is not new york. all these places are not new york and now these numbers we're seeing of increased infection rates, hospitalization rates in some cases are starting to look like early new york which is what you don't want to look like did people have their mindsets in the right place as reopening began? or does there need to be some adjustment, you think? >> honestly for us, my best friend lives in new york we thought, you know, we're always better off than them. we had golfing and all types of stuff going on here. then all of a sudden, you know,

it swapped and for us, it was really the whole mindset of it all is it's definitely shifted i mean, the last couple weeks all of a sudden we're the national news story. we're the ones that people are saying they don't want us traveling to their areas and i think really it's changed where, for example, when i went to the grocery store with my wife two weeks ago, it was about 50/50 people wearing masks you know, yesterday when i dropped her off because i have a 1-year-old and he needed to stay in the car, and everyone was wearing a mask so, i think people are starting to react and do the right thing. and just try to do what we can with the information that we have and honestly, we've seen it in both our restaurants a lot of people supporting us and the community for the most part people are, you know, good with having to wear a mask to come in to place their order. >> as an entrepreneur, as a

business owner, what's the most useful type of information you think that you could use right now both to keep your business operating in whatever distanced mode you see fit and to know when it really will be safe to open up more widely again so you don't have to take two steps forward, one step back >> yeah. that's what we felt like we did, to be honest with you. we also own eight food trucks. those pretty much were parked during this whole thing. we're starting to get booked for things like moral boosters at factories but we still have to practice the social distancing it's very unclear to us. and especially here we have, you know, the governor saying certain things and then the mayor and with having a mobile business like food trucks, different cities, you know, tempe is 15 minutes away from us they might have different rules than phoenix it is -- i know they're trying to give us the information, but i think sometimes it's unclear we honestly feel like we'll be

ready to go when it is very clear to us that we're not going through this mass spike of new cases. we want to be able to have customers feel safe when they come in and order a burger we're fast casual. so we're not a big sit-down restaurant, but people do like to dine in with us and we hope that the information is just a little more clear on, okay, is it safe for us to be open and are we going to be able to keep our staff and our community safe >> yeah. that's the one thing we keep hearing from entrepreneurs and specially restaurant owners, continuity and guidance is everything to a large degree they're just not getting it one last question, kyle. when dine-in was an option, how much demand did you see for that or is -- are people essentially making their own judgments about, i can go and get a burger i don't need to sit there. i can take it to go just as easily was that -- did that seem to be a dynamic that was evolving?

>> the dine-in definitely helped we saw an increase in sales. it was great to have our -- you know, long-term customers coming back but to be honest with you, with us, we were still serving in to-go boxes. we weren't serving on plates we already serve kind of on trays that are cleaned any ways and have disposable paper on them for our concept with being fast casual, we give numbers out, for example, for people's orders we weren't doing that. we just pretty much were giving to-go food to people that wanted to sit inside. so, for us it really became after doing it for about a month when they allowed us, it didn't make any sense anymore when we started seeing the spike we did see that increase, but what we're very thankful for is our community is continuing to support us and we haven't seen large decrease in customers, people are still supporting us with the takeout food. >> yeah. kyle, we're rooting for you. believe me, we know what you're going through. those of us here in the

northeast. ioly gourmet burger. thanks for the time. >> thank you for having me yes, indeed. we'll have exclusive data from cn unl rv oechnology executive cocisueyn the other side of this break. don't go anywhere.

say that working from home productivity appears to be higher so is cyber risk 36% of respondents say that both individual hackers and employee mistakes are the biggest cyber security threats to their companies. if you want the full results on the latest cnbc technology executive council survey, head

to cnbc.com/tbc. now, let's bring in a member of the technology executive council, the chief operating officers of girls who code good morning. >> good morning. thanks so much for having me >> really glad to have you i want to get your sense because in the survey we heard that finding qualified employees to fill open positions was a big risk here. from your network, not just of current girls who code who are waiting to enter the work force, but maybe even alumni who have, how has this crisis affected them and what is the potential for opportunity for them to fill an unmet need >> that's a great question we actually just recently did a survey of our alumni at girls who code during this crisis. and found that 40% of our college seniors are still looking for roles.

and so, this is a really acute issue for them of that group we found that 20, 25% of them were also care givers so, what you're raising is something that impacts our alumni but also folks throughout the entire tech sector >> so, what needs to be done either in terms of help that existing companies can give to girls who code or other policy initiatives that will help the group that you serve. >> i mean, i think for tech companies the critical thing is to acknowledge where we are with women, with people of color during this pandemic you know, when you look at the data, you have to kind of acknowledge the problem that we're grappling with women make up less than 25% of the tech work force. and for women of color, it's only 18% and so, even though you're kind of asking these questions, it's not just about hiring. the fact is that nearly 40% of women with engineering degrees

either quit soon after entering the field or they don't end up entering the field at all. and you know, specifically about this crisis and the impact that you're talking about and the data that you have, companies need to support women very differently. it starts with pay equity and promotions, but they have to be thinking about work from home policies family leave policies. we have tons of people across the country who are ill and struggling so it's also about flexibility for employees who are care givers. >> finally i want to ask this policy question, the president is suspending hib visas through the end of the year, stoking controversy. the stated reason is to give u.s. workers the best shot at jobs in a restricted market. any impacts that you see from that, positive or negative >> i've heard, you know n terms of the company perspective, i think folks are speaking out about that immediately and saying that it's a real problem that they won't be able to get

the tech work force they need. but from our vantage point, the girls who code lens, we actually have 80,000 college-aged alumni who know how to code but they're still struggling when they apply for jobs my response for this would be to ask companies to look inward, look at the skilled women who make up the population that we have now and recognize that it's a culture problem. you know, our work is to focus on training girls, but it's also about changing culture so, as much as this is a blow, i think around the visas for companies, we really want to push our alumni and encourage companies to hire more women and especially women of color. >> that culture change is hard work it's more than just a headline tarika barrett, thank you. >> thank you so much. >> chief operating officer of girls who code carl >> jon, dow is down 640 as we moved to a market selloff look let's get to our frank holland and get a news update. hey, frank. >> here is your cnbc news update at this hour

vitamin and dietary supplement company gnc filed for bankruptcy facing nearly $1 billion of debt the company plans on closing 20% of its retail locations totaling approximately 1,200 locations nationwide 30% of gnc stores were forced to temporarily close because of the pandemic. federal regulators opened an investigation into touch screen failures in the tesla model s. the probe is looking at 63,000 cars from the 2012 to 2015 model years. the same components were also used in 159,000 more recent vehicles and in madison, wisconsin, demonstrators tore down two statues outside the state capitol. a state senator was also attacked a black man shouted customers through a megaphone while carrying baseball bat in the restaurant. u.s. is slapping $3 billion on tariffs on goods from uk, france, germany and spain. the move is part of a wider reaction from the u.s. in retaliation to a long-standing dispute with the eu over

subsidies to civil aircraft manufacturers. goods like olives, coffee, gin, trucks could face those tariffs. that's your cnbc news update for this hour. carl, back over to you. >> that threat of tariffs just one of the things that are weighing on the market today, frank. as we have now our biggest market selloff in a couple of weeks. nasdaq is down for the first time in nine days. all sectors are lower. oil is getting hit hard, down 4% we'll go into more on atwh's driving the selling when we come back in a moment woman: my reputation was trashed online.

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talk more about the market action on this wednesday dow down 600 plus. back to 3061 mark santoli is with us on a day, mike, where not a whole lot working, whether it's tariffs or election risks certainly the covid number in this case out of florida are raising concerns about whether policies need to change statewide. >> for sure, carl. i do think that a lot of these issues the market has been

grappling with them below the surface far while. this is a day when, you know, the elite five or six stocks of the nasdaq are not rescuing the overall market that has obscured with the equal weighted s&p for a month has gone nowhere and had a hard time gaining traction as we reassess the strength and speed of any reopening type trade maybe we have to backslide from there. i think we all know the set of issues out there the question has been, the market's ability to look through them or shrug them off thanks to strong market credits or general reserved sentiment among equity investors. both those things are still in place but they're not incrementally in favor of stocks today versus where they were a couple weeks ago i do think in that stuck place the s&p has been for a couple weeks, it's showing itself a little more clearly today. >> you know, there's a lot of discussion today about the action that we're getting and the argument it's a result

offers in the marketing on the long side not operating out of fundamental conviction do you think that's fair >> i think it's fair in the sense that there's really not a lot of -- not a lot to pin a bullish thesis to in the here and now numbers. especially again incrementally you know, yesterday i was talking about how apple and microsoft up 2% on a day when they've already been extremely strong, when there hasn't been any news it really is a bit about positioning and money flows and treating some of these huge growth stocks asadjacent to th corporate bond market just because all cash flows are cash flows and we're going to bid up for them as long as things seem flush. so i think there's a fair case to be made for that. now, you know, i also think that people are willing to look across the valley on some level and think that earnings estimates have actually curled higher on a 12-month forward basis. in a very general way people are assuming that we have a bit of a

reset and we can hope things are going to get better, but it's not about what we're looking at in front of our faces that makes you have a lot of conviction at buying at these levels. >> mike, i wonder how much of this is just the markets been doing pretty well and any bit of sobering news is going to cause some pause how much do you think is related to the infection numbers, maybe even the political polls how much of a trend would you need to see in market action before you would attribute it to any of that stuff? >> they're handy excuses, jon. i think typically what the market will do is ignore, ignore, ignore and notice. it gets to a certain threshold level where it seems as if there's not a fair offset on a given day. we have these seasonal factors the week after the june options expiration, the fact it's quarter and rebalance away from stocks and the fact that positioning is, at least, less

cautious than it was a few weeks ago. all those things piled on top of the headlines. you mentioned i think it makes sense 2% or whatever it is remember, you know, we had a 6% down day we went down 8% from a high into a week ago monday's intraday low. and we're still operating in the in between those two levels. and so it's not as if the market is giving you fresh information about either being worried or excited about anything that's been going on the last week or so. >> are there particular types of stocks, mike, or industries that you're watching that are giving you interesting information as they move around whether it's in reaction to headlines or economic data >> i've been looking at the -- what i would consider some of the core reopening stocks. in fact, there's an etfpga down 2 to 3% today, even after a nice rally down 30% from its high that acts as barometer of today we're playing the reopening or

we're playing a little bit more of this secular tech trends that are even in more favor now because of what's happening with the shutdown that obviously is getting a little bit of a retrenchment today. it's really those things the banks have been profoundly and persistently weak on a net basis. it's just that they haven't necessarily mattered as much on some days because the rest of the big cap stocks were working better >> yeah. banks will be a story later in the week, mike, as we get those stress tests i wonder to what degree are financials in danger of losing some of the momentum that they had at least from a standpoint that they're strong on capital with deep reserves and certainly deposits going through the roof. >> i think you can still believe that they have strong capital positions and that they don't really have any stresses within the balance sheets but why do we care about strong capital positions in a downturn? it's because it's capital to be burned up in credit losses without threatening, you know,

the soundness of the institutions so it's not always a good news thing if you think credit losses will be dragging on for longer than we thought. they're cheap. they looked cheap for a while. maybe we get the stress test and it's not a matter of having recommendations for dividend cuts or something like that all of a sudden becomes an excuse for when they can stop selling off because maybe that's been hanging other the heads of the group for now. >> yeah. finally, mike, not to wade too far into it because it's the election is so far off, but the times does have biden up 14. i saw some survey this morning that suggested that among investors election risk is even a larger concern than covid, which sounds hip ok raful to me. >> i wonder if covid risk has just been the premise for so many months right now that the next thing that people think they need to worry about might be the election. it's interesting because, you know, biden has been rising in the betting markets for a while.

the market has not really been registering that as a negative, at least in realtime again, maybe it gets to a threshold level where it seems like it will be a lasting or persistent trend i don't know that the market always knows what it wants from an election and therefore even if it trades in a certain way before you get it, whether that's going to be what the rule is if you think about the fact that we were talking about potentially 30% down quarter in gdp a few months ago, you had these existential threats to various industries is the market really going to freak out about a 6 or 7% percentage increase in the corporate tax rate it's unclear if that will be the thing that will be the major swing factor this many months out from the election. >> all right mike santoli, always great insight. appreciate it. >> thanks. and we've been talking stocks let's now take a look at the biggest laggards on the s&p this morning. no huge surprise here. got some cruise lines faring the worst.

norwegian, royal caribbean, carnival simon property group and gap not faring too well. a lot more "squawk alley" is still ahead. stay with us if you've had the coronavirus, you've got a lot of fight in you. and you're in a special position to help us fight back. the plasma in your blood can literally save lives. but we need to act fast. please donate plasma now. please donate. donate. donate. donate now. you fought for your life. now let's take the fight to covid-19. go to the fight is in us dot org to find out how to donate.

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adyen. business. not boundaries. so we're announcing today a joint travel advisory. people coming in from states that have a high infection rate must quarantine for 14 days. and we have a calibration for the infection rate and any state that goes over that infection rate, that state will be subject to the quarantine it's only for the simple reason that we worked very hard to get the viral transmission rate down we don't want to see it go up because a lot of people come into this region and they could literally bring the infection with them. it wouldn't be malicious or malevolent but it would still be real so we are jointly instituting that travel advisory today

because what happens in new york, happens in new jersey, happens in connecticut and i think it's right i think it's smart i'm glad that we're doing it together and we've done a lot of good things together. and hopefully we're on the other side of this mountain. and we'll continue to see the numbers go down. we'll continue to see the economic activity go up. and with that, i'm going to turn it over to my neighbor, governor phil murphy. phil, thank you. >> that's new york governor cuomo with the governors of new jersey and connecticut announcing something he suggested he was considering earlier in the week and that is a quarantine for visitors from states with high coronavirus infection rates. for more on what this means for the northeast and the tri-state area, we'll turn it over to our contessa brewer watching the impact of the virus on this area hey, contessa. >> hey there, carl yeah, we just got to the point where new york city is now in phase 2 reopening with outdoor dining and the like. part of the reason is because

they have suppressed the new infections so much they're about on average 100 new cases in new york city per day now, contrast that with another area that i paid very close attention to in nevada, where in clark county, this is las vegas, they're seeing on monday 412 new cases reported yesterday they saw 295 new cases. so, by exponentially more than what we're seeing in new york city so, the governor is coming out saying we've done such a good job of flattening the curve. we don't want people coming back in and making our infection cases explode again. why does this matter right now snow birds, those people who typically go south for the warmer weather during the winter months have delayed their return to northern states and now that we're seeing these infections rise and spike in places like texas, arizona, nevada, and florida, we're seeing the return of the snow birds to their northern states

i know, for instance, my mom is planning to come back next week. they were already planning to quarantine for 14 days now that's going to be mandatory if you're returning to new york, new jersey, or connecticut at this point so you have all those people traveling back to where the infection rates are lower. and the governors want to make sure that they are staying on this trend of suppressing and flattening that curve, carl. >> contessa, thank you for that. we'll continue the conversation about this topic with the state treasurer of connecticut sean wooden who was going to join us originally about fighting economic dpes parity in black communities but hopefully we can start with this stoppic. thank you for coming in. >> it's great to be with you >> what do you think this means for connecticut and new jersey and new york >> i think this continues a pattern of great cooperation between our states and great leadership of the governors letting the public health and

science officials guide our reopening efforts in how we handle this. >> do you think at this point so much hard work has been done by these three states and others in the northeast as well, it does seem like a comment on the degree to which they're going to fight to make sure those hard-gotten gains are going to remain in tact >> yeah. obviously as you reported, we've been hit hard here in the northeast. and our governors have stepped up in a way that, you know, failure of national leadership to do so and i think it's right it's appropriate to kind of preserve and protect those gains. we're trying to protect the public health of our residents and as we'll talk about we're trying to preserve and grow our economy. and so this -- these steps that were announced today are completely in line with that and again, i applaud the governors for their continued cooperation

and we need more regional and national cooperation that they're showing. >> you mentioned there's public health and financial health. mayor de blasio raised the prospect of some layoffs in new york city to address the budget short fall among in the five boroughs can you give us a picture of what the budget forecast looks like for connecticut and whether or not you might have to reach into the same tool box >> yeah. so like all those states in the country, we're facing a significant hit in terms of our expenditures going up, our revenues going down. with that said, we've done a lot of good work recently to put our state in a very strong position and just by comparison, our rainy day fund is twice as large today as it was when we went into the 2008/2009 recession what that means is our ability as a state to with stand this

economic downturn is stronger than many states and that was recently evidenced within the last month issued three bond offerings all of the major rating agencies confirmed our rating and gave us a stable outlook and on our most recent transaction 20 year bond issuance we received the lowest interest rate in the history of our issuance of that type of instrument so, we are well positioned to weather this storm and we are in the storm just like the rest of the nation with significant unemployment, closure, businesses. but we are doing well and we're a strong state and we'll get through this >> i do want to mention that as we are talking, the major indexes are right about at session lows the dow is down 3%.

the s&p nearly that. mr. treasurer, so your rainy day fund could fall short of its needs. i'm wondering what sorts of measures are going to be needed even coming out of this. they're already -- there have been long complaints about the tax rates in connecticut what not. but i imagine you're going to need revenue what's the state going to have to do not just immediately but over the next few years to stabilize things coming out of this >> yeah. to just be clear with respect to the rainy day fund, we're at levels where we don't anticipate that being depleted any time in the near future. with that said, as treasurer, i want to protect and preserve that and the state will have to take additional measures with respect to reducing expenditures, with respect to looking at additional revenue sources which are constantly under consideration.

but, those steps are currently being considered by the governor at our legislature will be going into special session some time later this year to take up those efforts. but they are under way and different options are being considered. >> tell me about what you see in how different communities in connecticut are being affected at this difficult time are there some communities that are affected more than others economically we know that has tended to be the case from a medical and health perspective >> sure. absolutely this covid-19 pandemic just underscores the disparate impact that is present in our society long before the pandemic so you see it with black and brown communities being infected at higher rates, being hospitalized at higher rates, dying at higher rates. so, we have absolutely seen that

in connecticut and we've tried lots of efforts, including improved testing, outreach efforts, you know, i've been -- went to the community i grew up, predominantly black community in the north end of hartford, connecticut, and publicly got tested just to encourage greater testing. and so, all of these metrics we're seeing we're seeing the impact not only in connecticut but nationally on front line essential workers and this is -- i think this pandemic will underscore kind of the value of front line essential workers in a way that we haven't appreciated overall as a society and so, that's where we are now. >> i'm curious, you mentioned the credit markets willingness to help some of these states, as you said, with extremely low cost of funds. how long do you see that lasting? and does the overall level of debt concern you in any way?

even if it may be at interest rates that we couldn't have dreamed about couple years ago >> yeah. so debt is always a concern, but right now the mission, you know, i applaud the efforts of the federal reserve coming in, this health crisis created an economic crisis which created a financial markets crisis and markets were stabilized to some extent. there's on going increased volatility, of course. but by the support by the federal reserve. i expect that long-term debt levels are not sustainable anyone paying attention to this knows that but we're in the midst of significant crisis and in order to preserve life, preserve our economy, for a return at some point, these measures are certainly

necessary. and so, right now it's about survival and as we start to reopen, it's about how we recover and build a stronger economy. >> finally, as we're talking, cuomo continues to speak and says the quarantine covers visitors quarantine covers visitors from alabama, north carolina, arizona, florida, washington, texas and utah how is the state modeling any potential disruption or scenario like some of these states in the south and western now facing to what degree are you on alert for a second spike in the northeast? >> we're constantly on alert, but it's important to point ute there's a difference in how states have treated this crisis of public health we in connecticut, we have been guided by the science, so that's how we made decisions, cdc guidelines, public health officials in the state, experts

that we've called upon to help advise us, and part of the difference of what you're seeing in the country, you know, states like new york, connecticut, letting the science guide the efforts, that's very different from other states, some of this let political considerations and pressure further delay their reaction and also premature reopening. we see this in florida, texas, arizona. they're staying down, and of course we're going to remain vigilant as a state and our public health network to monitor that, and we, like anyone paying attention to public health, are on alert for any spike or any change in that but we're going to keep up our measures and be vigilant i would just ask the residents

of the state of connecticut to continue to do a great job and being disciplined. it's hard, it's tough, but we're preserving like and trying to protect our economy for a future return that's robust and sustainable. so that's what we're engaged in at this time shawn wooden, state treasure you are of the state of connecticut, i appreciate you pivoting with us on the news of the day. >> sure. would love to come back and talk about my corporate call to action as it relates to racial injustice. >> yes, which was definitely our intent we'll get to that story. that story will be with us for some time. >> thank you we have to break just keeping our eyes of course on the market. major indices still near session lows, dow is more than 800 points, that translates to just over 3%. the nasdaq not quite as bad,

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stocks continuing to slide as we head toward the noon hour. look at the biggest laggards in the dow. boeing and more. we'll have more after this break.

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stocks did not like news of the new quarantine announced by governor cuomo the question is what it means for the airlines phil lebeau has more. >> terrible news for the airlines that's why if you look at any of the airlines -- delta, american, united, they all have hubs in the new york city area they're all under pressure, especially once this announcement came out. why? a 14-day quarantine kills traffic. it makes people say, you know what i'm note going to take that trip why? so i can isolate for 14 days i'll put it off. or the double whammy that people in those areas are looking at the states where the quarantine is in effect, saying do i really want to take that trip to dallas, orlando, or wherever it might be that's deemed a hot spot this is notgood news for the

airlines that's why all of them are in the tank right now, especially since this announcement is out if you see illinois and michigan follow on, now you've pretty much separated different areas in the country not good for the airline industry >> all right phil, the question remains how this gets enforced obviously no one will hold your hand in the land at laguardia. >> you're right, but people have said, it's not hard toe go online and see the people who ignored the 14-day quarantine when they went to hawaii, and they were snagged by the local authorities. a lot of people will just do it on tear own. they'll sit there and say do i want to go through the hassle of checking into a hotel and somebody saying, wait a second, you're from dallas, you're not supposed to be going anywhere for 14 days. that's what's going on hurt the alliance. >> just as we were starting to

see measurable improvement. >> yeah. we'll watch the price action this afternoon as santoli pointed out, megatech did not come to the rescue. >> not yet, it's just one day, but boy, what a slide we've had seen let's get to the judge carl, appreciate it very much welcome to "halftime report. we're following this sell jot on wall street today. the cases of coronavirus spiking in key states of florida, texas, now that regional quarter teen announced by the governors of new york, new jersey and connecticut. we do have a special guest with us jim cramer is here along with joe terranova, and stephanie link, who has joined hightower congratulations, we're so happy for your