i i'll probably be looking at that hear on >> steve weiss >> these push back above 200 >> you've got five seconds >> marsh mac, great new insurance world pandemics. >> all right you held it to five. good to see you. thank you, scott hi, everybody. texas puts its reopening plans on pause as covid cases rise we'll have the latest. plus the new concern bubbling up joe biden's rise in the polls. we'll have the numbers and what it mean for investors. speaking of hitting pause, bleegered disney is facing new challenges and movie pushbacks. plus a big win for the banks. putting the mark in supermarket and the college campus quaunquay >> so kelly, a bit of a pause overall right now as well.

we've seen red and green today overall, you're seeing just some fractional, very fractional gains in the dow, the s&p 500 and nascar the dow industrials were up 143 points at the high so far today. up 57. still, those margeal gains holding. the s&p 500 still above its longer term 200-day moving average over the last 200 days the nasdaq composite holding steady one place to watch though is the negative playing out in certain retailer they've had nice runs. if the covid pandemic will surge again, will some of these retailers do pretty poorly relatively speaking? on the discount side, tapestry, you can see it kohl's, down 3%. and game as well and then the covid stock of this particular era has been zoom in the past but fastly of late. this is a company that helps

accelerate internet to users believe it or not, this was a $14 stock. there abouts back at the covid lows look where it is now almost $82 we'll call it roughly $485% returns. just in a few months >> that's wild you know, the they're a pandemic stock. >> we'll see you later >> as covid cases surge across the country, states, cities and counties are evaluating the reopening plan the governor announcing a short time bag new phases of reopening the state's economy will be halted we're getting some headlines from the cdc briefing that's just wrapping up for all latest, let's go to meg. >> hey, kelly. let's start with that cdc briefing the remarks coming just now from the call that just ended the cdc directorreally taking different tone than we've

perhaps heard from dr. fauci in the hearing earlier this week. they were in a very different position now in the pandemic than we were in march and april. emhe is not underplaying the significance of these new cases but he did point out that many of the new cases are in younger people who he said, quote, in the past, i don't think we diagnosed these infections he said that from the cdc's perspective, only 110 to 120 counties in the u.s. are considered hot spots, or having significant transmission, pointing out it is just about 3% of the counties in the united states now, we also noted that cdc has been doing ongoing surveillance of antibodies to look at blood samps to see who has been exposed. he said that 5 to 8% of the american public has experienced infection, whether they recognized it or not they may have been asymptomatic. he said some states that were less hard hit could have prevalence under 2% where areas

like the new york area that was harder hit would have fewer susceptibles so perhaps higher numbers of antibodies he said the cdc currently estimates ten people have antibodies for every one case. he did reiterate, he's not down playing the risk and we could see an increase of hospitalizations and deaths in three to four weeks and part of the risk of younger people getting infected and those who don't know they're sick is that they could pass it on to susceptible people but we talked about texas delaying reopening and telling hospitals they can't do elective surges to make sure they have capacity for covid-19 patients we see this in houston as they are exceeding their icu capacity so quite concerning. the cdc director saying a very different situation now from back in march. >> are they doing anything to try to link or not link the

surge in young people and these hot spots to the protests over the past month or so or not in did they say anything about whether those two are related in. >> no commentary on the call about protests, although they were not specifically asked about that in terms of the advice they're giving people, including for the upcoming july 4th holiday weekend, social distancing is the number one thing people need to do. hand washing and mask wearing. they were not asked about protests interestingly we are hearing from california. they think the protests may have contributed to some of the uptick but in massachusetts, they don't and of course they have dramatically different levels of transmission right now >> one more thing in hoof. head to the hospitals there saying they have surge capacity. when you see a headline which says the icus are at capacity today. if this case count keeps rising, i would hope and assume that surge capacity is ready to go. >> yeah. the reports coming out of

houston and texas medical central show their surveillance is very strong the data shows they're looking at this and preparing for it that's why we're seeing these warnings they have such surveillance and they're putting out this information showing when they're reaching capacity. so concerning situation for them, certainly. >> for sure. >> all right thank you very much. with all the headlines on that front. in the meantime, the democratic contender joe biden building on his lead over president trump. on all issues pretty much except one, steve is here with the results of the latest cnbc all america economic survey. steve? >> thanks. the cnbc all economics survey showing joe biden has jumped out to a 9-point lead, increasing it by 4 point from our april survey if you look at the data, you see the president lost just a point but it was biden who gained another 3 points in the survey the reason is he consolidated his base democrats increased their support for the president. young people maybe some of the bernie

supporters moved over. along with certain income groups as well. the president lost among independents, and lost some support among older people hook at the issues though, the president does lead on the critical issue of the economy. we asked about age specific issues the president leading on just one. he has a 6-point lead when we asked who has the best policies on the economy but he doesn't lead on two more key issues, it is within the margin of error on immigration and border security as well as dealing with china biden has a slight lead. on issues like leadership, the critical issue of health care and covid and even racial equality, joe biden has a commanding lead on those issues. on the economy, 26% say they've lost wages, salary or hours at work name% say they've lost their job. 77% think a second wave is likely and 46% are concerned their state could open too fast

compared to 30% who say too soon and 64% say a year or longer to return to normal while the economic numbers are tough right now, and the outlook is still very uncertain, the president still has that lead on the economy. though biden leads overall >> how consequential is the loss of some independent support, steve? >> you know, it's potentially consequential. if you look at what that, it is a fascinating story. the president lost 11 percentage points in support for independents but they didn't to go bidenful they went into the undecided column so a republican and democratic pollsters say those folks are still up for grabs here. the idea that biden didn't capture them means potentially they could go back to the president, depending on what happens. still a long way to go nobody is ruling anybody out in this election. >> it's early. that's for sure. but still, a big swing there

steve, thanks very much. we appreciate it so which is the bigger risk to the markets the rise of biden in the polls the rise of covid across the country? we're talking to michael, founder and ceo. michael, i'll turn to you first, especially kind of curious how this plays boo a lot of your themes which are health care, technology to some sentence. are these areas you think can do well regardless? >> yeah. it depends on what time frame you're talking about i think that what we're looking at here, you have to look past 12 months. over the next three to six months, everything could have problems, particularly if we have a slope with the virus so it is all about time horizon health care will get a pass to make a lot of money to do biotech research so wednesday that's an opportunity. and technology continues to be part of the economy. it all depends on time frame as i said in the notes we sent

order to you i think it is entirely possible we'll see a 10% correction like now. imminently we already have seen softness in the market even though it stabilized today i don't think you'll get away from virus-related panic >> what about the politics would a biden presidency, what if there's not a divided congress democratic controlled congress what would that do for you from an investment point of view? >> well, first of all, if there is any change, a change in administration, legislative bodies, it will be a net negative volatile issue for the markets. i think sometimes people somewhat overstate how much presidential politics necessarily play into this remember when donald trump was elected, i remember the day donald trump was elected, i was on network with tyler in the middle of the night, and the market was down 10% just based on that one election night

swing. so i don't think you can put too much into it really, kelly, the money that's inserted into the system combined with what the federal reserve is doing, that will be a tail wind for the economy for a significant period of time >> let me bring you in on that talk through some of the trends that you see playing out here. what are the most important ones do you think you have to kind of, look, it's easy to say you have to look past the near term volatile but we know for a fact that things are going to swing around so as it relates to covid, to biden's odds, what are you most focused on >> yeah. this is the new normal i mean, you're going to see fits and starts i guess yesterday you saw texas and florida and california just the number of cases spiking. you'll see the mark sell off on that i think it is the new normal we'll live with this virus for some time. if there is something like a vaccine that gets hyped up, that's an opportunity to take profits and things and i would be buying individual

stocks on a lot of pessimism like maybe we saw yesterday and a little bit today now the market has recovered a little bit as far as the election goes, yeah, that will be just going to create more volatility, i think. there are some studies that came out that said when you switch from a republican to a democrat in the first three months, maybe the market sells off a little bit. but i believe in earnings and individual companies and that will rule the day in the long run. >> i think it's interesting, you say while amazon and microsoft are the most document nanlts on earth, you would rather own the smaller companies that have the chance to double some of your picks are ehealth, el dorado, key to the reopening. are you feeling more concerned about el dorado now? >> yeah. it is still down about 50, 60% from its highs so this is one where you've got to believe that the economy is not going to come to a screeching halt. even in a phase ii scenario, where things are at 50%, i think they'll do extremely well. they're getting ready to gobble

up caesar's and that should be closing the end of this month. and while they're talking originally about 500 until synergies, now they're talking about $800 million in synergies. they closed the buffet at 52 profits that cost them $52 million a year $150 million in savings. so i think a lot of things will come through ligand pharmaceuticals will do really well. they're selling for the covid treatment and they just ramped up their capacity from 60 metric tons pre covid, during the pandemic and post covid >> and buying health insurance online this is the second time i've heard how much closing the buffets will save the casino companies. great to have you both here.

we do appreciate it. thanks the results of the seven-year treasury option are out. we just set a new record hey, notes and bonds are exciting record setting $41 billion seven-year notes and the lowest yield ever for a seven-year at auction. now, the low closing yield in the secondary market has been .476. that was april 21. now, let's go through it all the numbers, the metrics, they were all at or above average. dealers take a lot less than they normally do by a couple of percent. maybe the best thing of all was the .511 was on the offer side of the market. everything was strong. b plus on the last of the supply. and it is affected, of course, by the reason volatile in equities made the bitters a little more aggressive >> that's impressive the biggest ever and the lowest

yield ever don't usually go hand in hand. those are the times we're in coming up, life after covid. morgan stanley laying out the four ways this pandemic could play out what's likely? and the second worst performing this year. financials ♪ ♪ yeah ♪ ♪ y-yeah ♪ ♪ yeah ♪ hey, hey ♪ yeah you're first. first to respond. first to put others' lives before your own. and in an emergency, you need a network that puts you first. that connects you to technology to each other and to other agencies.

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welcome back it's a big day for the banks ktf is up about 2% as bank regulators unveil changes to the volcker rule down 24% wells fargo is down 51% from its 52-week high still citigroup is down about 37%. bank of america down from its 52 did week high. some positive news for the banks. will >> they're up today. so the two things really driving that move high today first, the covered funds provision is being adapted this will allow banks to take stakes in private equities and hedge funds. they will still not be able to trade for their own accounts known as prop trading.

the second change, a little more surprising, the fdic will no longer allow them to hold margin when trading derivatives with their affiliates marine greenberg opposed both changes. the fdic voted 3-1 in favor. the change has been ratified the margin change still needs approval from the fed as well. investment banks have led that rebound today. they have the most to gain from these changes but all the banks are high by less than they were down yesterday. so not a massive move in that regard the timing of these announcements, a little odd coming the same day as the stress test results due at 4:30 p.m. eastern time. we won't get most of the detail until next week when the banks make public what they are told by the fed this afternoon. >> i'm just curious if these rule changes are really that substantive or not are they the kind that are

boring but substantive or the kind that sounds like a big move but actually don't go that far >> mainly the former not that substantive if i think i got the order right there. particularly the change to covered funds. that was also relatively well flagged. not holding margin against swaps and directive trades is helpful and it will free up cam for the banks. to see all regional banks rally, for example today, versus more understandable moves in goldman sachs and morgan stanley is a little bit of a surprise you can frame it a totally different way to say they've split the difference of how much they fell yesterday. so not a massive rally in sense >> that's helpful. we'll see you hear it's been a tough year to get a good feel for the economy. on the one hand, the jobs picture is bleak and now more places are pressing pause on reopening. on the other hand, houses are strong, spending is rebounding and cars are flying off the lots morgan stanley says there are

four possible outcomes for this post covid economy joining me to discuss it, ellen zentner. it is great to have you back welcome. >> hi, kelly >> so it's basically a robust recovery, back to normal, a new normal, and deep scars let's hear it. which do you think is most likely >> yeah, so what we're calling a new normal most closely resembles our base case. how the vaccine plays out in all of these scenarios is very important to which scenario we find ourselves in. the next 18 months will take the next five years for the economy. so what we're calling a new normal is that the vaccine comes but not before a second wave of infections it does drive some risk aversion during this time so it leaves a little more lasting imprint of risk aversion on consumers in different businesses

so in recovery, some of the more bullish scenarios. but that return to what we're calling a new normal has to come with some assumptions of what does work from home look like? certainly the wages will be lower than today but higher than they were previously and the help of our analysts became very important in this analysis because not all is bad when wednesday about technological advances, especially when they're tied to working from home many of those can bring productivity gains which help us maintain gd pfr. >> that would be good longer term outcome >> of the four outcomes, you're thinking the second worst is your base case which is to say, it is not the worst outcome but it's not some of the more

optimistic ones either a lot of this depends on the vaccine timing i really thought it was interesting, your point about how in your base case, which is somewhat cautious, you envisioned 30% work from home rate longer term which is about double what the government is estimating why is that figure so high what does the tell us? >> yes, so our survey suggests with households suggests we have about 50% working from home right now. so we are assuming that it comes down substantially from where it is today many company will be going back to work or having at least more flexible work at home arrangements, and not full time at hole. but we do ends up with double the amount the government had estimated pre covid. now, what have we done we've proven that productivity does not suffer when we work from home. we've removed the stigma of working from home. we've put in the technological

advances to work from home and that will continue to deepen over time. and so you know, a really deep dive into more than 700 sectors of the economy to look at the capability to work from home it gives you these times of numbers. getting this estimate, just a ballpark is important. because if we think about consumer spending trends, when we worked from home, we spend like we're in retirement if we take out health care spending, more age-related, when we move into retirement, we drop by 20% we drop food away from home by 8% and we drop transportation expenditures by 4% so all of those are tied to work, eating out, traveling, work clothing. so that will shift consumer spending power >> i'm so glad you brought that up i thought that was one of the

more interesting takeaways people who work from home effectively spend like they're retired minus health care which is a big piece of it when you are retired. what does that mean for the population longer term, and for all those sectors, apparel, food away from home, transportation, if you effectively have the population behaving like it is retiring early on a scale that we would have previously thought unimaginable >> yeah. so we have a lot of shifts that have to happen drawing in the analysis of our equity analysts. we have to think about shifts like single family rentals which we have identified as a tail winds from the bracket change of the last year. this accelerates that. a very longer term tail wind think about food delivery and third party aggregators. online gaming, telehealth. not just work at home impacting commercial real estate but

telehealth impacting real estate as well. it has a broad range of impacts across a broad number of sector, and the major thing to think about is ecommerce, eservices, travel, tech transformation and social reallocations those are all wrapped up in things that can be affected by the post covid shift >> it's fascinating and it goes right back to the stocks outperforming right now and the changes underway ellen, thank you so great to have you. >> morgan stanley's chief u.s. economist. coming up, a blow to disney as the company is forced to push back the park reopening and potentially its movie rethings, too. plus, putting the market in supermarket. albertson's is set to make its public debut after a failed attempt in 2013. why now and is the stock a buy ever since we've gone mobile on the now platform,

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let's get right to our cnbc news update. >> let's start in new york city. the city is set to move into phase three of the reopening plan as early as july 6th. according to the mayor bill de blasio the city will allow indoor service in restaurants and reopen recreational areas and personal care services like nail salons this summer drivers are likely to pay less for gas than in four years. that's according to the latest forecast from aaa. prices are likely to average vince carter officially retiring after 22 seasons in the nba. the eight-time all-star is leaving the game as the league's 19th all time leading scorer and the philly fanatic and mr. met, they are back in play major league baseball will allow mascots in the ballpark, but not

on the actual field, and this is a reversal of a previous plan that banned them entirely. but with no fans in the stands, the mascots will be performing only for the tv cameras. so as a philadelphia native, i have a soft spot in my heart for the fanatic. he once kissed me. stole a kiss, mind you, on live tv he knows how to play to the cameras. >> i can't believe this is a national story >> very important. and you're up to date, kelly >> we want all those things that make us feel like we're getting back to normal thanks so coming up, shutdowns across the country are causing another to file for bankruptcy and colleges are beginning to announce their plans for the fall we'll speak with bowden college abt eiouthr plans and who isn't coming back to campus, ahead

welcome back markets volatile as concerns about the coronavirus and thing are of the economy persist we have the dow at only 19 points right now all the major averages are clinging to tiny gains the nasdaq is looking at its ninth positive session in ten right now. let's get to the biggest movers of the day looking at the reopenings of disney parks don is here to break down kb homes' tough second quarter. a look at the albertson's ipo and kate is covering the latest restaurant to declare chapter 11 julia. let's start with you >> well, disney delaying reopening anaheim theme parks which was set for july 17. this as the company waits for guidelines from the state. given the time required for to

us bring thousands of cast members back to work and restart our business, we have no choice but to delay the reopening of our theme parks and resort hotels until we receive approval from government officials. now, governor gavin newsom saying, he, quote, appreciates disney's responsiveness to concerns about reopening amidst the recent increases in covid-19 infections this comes after uppers representing 17,000 disneyland employees wrote to governor newsom raising safety concerns about opening the park now, one more park update. dips announcing it is switching its splash mountain rides to a princess and the frog theme from a theme around song of the south. further distancing disney from the racially insensitive 1946 film >> but it was the floored parks we were speaking about yesterday where the workers are petitioning to delay that opening. >> yes so there have been over 8,000 people who have signed a

petition saying in florida, they believe that the parking lot reopen until we see decline in the number of covid cases. clearly that's not what we're seeing what is happening here is we're seeing a difference between the state of florida and the state of california are handling things florida was full steam ahead ready to open the parks. that park is scheduled to open still on track to open july 11th the california parks, that was scheduled to start around july 17 but one thing to note here that's different in florida, disney has already opened the mall outside the park and they're already starting to have people come in there, giving them a much better sense of not only consumer demands but also how people and employees are handling the logistics of it all. >> but now the california one delayed. thank you very much, julia let's to go kb home. falling today by 15% they're off the lows off about 11%. all of this after a surprisingly weak second quarter numbers.

>> so what we have are earnings that were better than expected for kb home. that was perhaps one of the drivers behind some of the optimism for a lot of home builders the earnings were a beat however, revenues did come in below analyst estimates. one of the big reasons why traders were lessen tlauld had to do with the order cancellations. a lot of people canceled orders for new homes because of the pandemic when you see that kind of activity, could the trends be sustained? that's something to watch there. but if you're looking for the silver lining, that was earlier in the quarter so far in june, you are seeing some better trends in terms of orders for kb home that's why people are a little more skeptical about whether or not some of these declines today have to do with just the earnings report. look at this in context this is kb home over the last year one. etfs that tracks hole builders.

some of the optimism, the home builders one of the hottest in the market that's why you're seeing an outsize pullback today >> the cancellations were surprising but maybe the theme is, the people who are ordering new homes now. we know that they're doing so in spades these are new people that's offsetting the ones who unfortunately had to cancel. >> sure. and the cancellations, they might be specific to certain geographies, certain parts of the market one thing i would note though in that hot home builder trade is not just the home builders themselves check out some of these stocks as well. you're talking about sherwin williams makes paints, whirl pool for appliances. you can see a lot of the price action since the covid lows have reflected the moves higher and the general sense that things are getting better and the housing market will improve as a result.

>> thanks very much. let's turn to the albertson's ipo. we've heard this before but they are expected to price after the bell they tried to go public five years ago and failed let's bring in leslie with the latest >> hey, that's right a bit of a deja vu here. if you haven't heard of the grocery store albertson's, you may know the other brands like acme, safeway and randles. tonight after two unsuccessful attempts in recent years, in 2015, albertson's filed all of its paper work but ultimately people balked at the $12 billion debt load. they tried three years later with a merger with rite aid but shareholders opposed that combination. so here we are in june of 2020 in the middle of a pandemic where demand for groceries is higher and the coil's debt load is lower and the private equity owners may finally get on cash out including investors 14 years ago. al betterson's still has about

$18 billion in debt and won't be receiving any proceeds from the ipo to help pay that down. >> they won't get any proceeds >> nope. >> only the current investors are getting to sell their shares this time around so only, in the ecm world, that's known as secondary. shares that are beingoffered no primary shares going to the coil >> thanks 57 with the run down there. and finally, the parent company is filing chapter 11 as it struggles during the ongoing pandemic kate rogers has the sad details. who could be next, kate? >> filing for channel 11 as the pandemic has rocked business of course it is the apparently coil of the iconic chuck e.

cheese and peter piper pizza and about one-third of the locations have rmd last year it fell by 22% but they are not throwing in the towel. they will use chapter 11 to restructure its balance sheet and support long material strategy it was bought taking it private about six years ago. chuck e. cheese is not a traditional casual name. it is more like a dave and buster's which could potentially be in trouble as well but it is notably the big restaurant name to declare bankruptcy. of course we've seen j. crew and jcpenney leading the pack on that >> it is not surprising, chuck e. cheese's seems lying it is out of date for quite some time. the locations around us is not the best but dave and buster's had that great real estate. for years, it was a great stock. but maybe they still face the same head winds if we're going

to be looking at an environment for quite some time. >> that's right. the more experienced you are like a chuck e. cheese and dave and buster's, the more concern there is they do have a bit of a life line two other names he did mention though dine global and red robin gore may burgers. ooze but casual has been struggling for some time >> experiential was the wave of the future but not anymore thanks so and coming up, it is getting back to campus for some. lower tuition for those who are not returning and no varsity sports these are just some of the steps bowden college is taking in the fall to keepeoe pplsafe the president of the school joins us next.

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. twhile the future of work professional or consultant 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 and three from becoming more. while displaying key information in one place on a customer relationship platform you trust. because here's one more thing we're sure of. relationships are the heart of business. so let's tackle this together.

colleges across the country are releasing their reopening plans for the fall semester

including the protocols they'll put in place to keep everyone safe according to the "wall street journal," that cost could be in the millions for some schools as they upgrade systems, invest in safety equipment and testing not only that but many colleges are going to great lengths to maintain social distancing joining me to look at their plans, the president of bowdoin college. great to have you. >> great to be here. thank you. >> and you guys are able to at least try to get students on campus you're a pretty remote, sort of tight knit community there it is only going to be the freshmen for the fall? is that right? >> we'll be anchored by our first year class but we'll have a group of students for whom trying to learn at home is virtually impossible because of the home conditions. a group of seniors that have projects that require them to be on campus and the staff. >> and you'll flip-flop it so the freshmen learn at hole in the spring semester, maybe bring the seniors back >> our goal is to learn as much as we can in the fall with the

group that we'll have about how to safely run our campus and them if we do that properly, which is my expectation, and the world cooperates a little bit with us, then we will bring our seniors, juniors and sophomores back in the spring and hopefully also have an opportunity for our athletes in the winter and harpri spring sports to participate >> there won't be any fall athletics. this is interesting to me as well that you say, not only will all students and residents be required to use face coverings, maintain social distancing you say everyone on campus will be tested for the virus at least twice weekly it sounds uncomfortable. i think based on how those tests work we can understand why you're doing it, and require to participate in contact tracing tell me about the cost of all this around here, we have colored wrist bands. you're temperature checked every day. it is a big undertaking. >> it is in order to keep, so let me make

a couple comments about. that college campuses in this country are densely packed environments for most of the time, that's a wonderful thing. all kinds of goodness that comes out of that in a college experience but when you've got a public health crisis and a highly contagious virus like the one we're dealing with now, having that kind of density is really problematic. so we're reducing the dense city and then we're putting in place a set of safety practices. the requirement that everyone indoors and most of the time outdoors wear a face covering, good hygiene practices, social distancing, symptom monitoring and so forth we've also learned through the reopening of manager in the last five or six weeks that following those practices in a rigorous way for anybody, college students and everybody else, is really hard to do. we've seen it and we've seen the consequences of that so one of the things we're doing is putting in place this testing protocol we'll test everybody twice a weefblg everybody on the campus. it is a program that we're

participating in with the scientific institute in cambridge, massachusetts it is the front of the nose. not the very invasive test in the early days we get a very quick turn-around. the tests are highly reliable. given the length of time from the time someone acquires the virus to the time they become communicable, this allows us one or two turns of testing individuals, to capture that virus early and then to figure out where we might have had a breakdown in those practices through contact tracing to be able to fix the systems that we have in place during the fall to make they will stronger so we're in a better position to bring back a larger number of students in the spring and ultimately get to the full number so we've got to work those systems. and the fall can be tricky from a scientific and health% we're very mindful of that as well >> and you're fortunate because you can at least try to go this route. many of your more urban campuses with different arrangements or colleges in the northeast, don't

feel like they can give it a shot at all. but i want to ask you again about the financials before we have to go here. you're freezing tuition based on last year's rates. no room and board if you're not on campus. what is the financial hitbeen like for the college, including the cost of all of this new infrastructure so we're very fortunate. we're in very strong financial condition. we have a very strong endowment. we have a lot of liquid cash reserves with which to deal with a situation like this. the plan that we put in place, we're only bringing back some of our students is the costliest plan that we could have done if we brought everyone back, we would have captured more of the comprehensive fee. and all of our employees and faculty will be on campus and employed so this is actually the costliest plan but one that we are able to fortunately, only the able to weather through. some sacrifice by folks on campus we haven't been able to fully add up everything that this is

going to cost but it will run into the millions for us between the testing, the work that we're going to do around online learning, and in order to do it right, to protect the health and safety of the community, that kind of investment is what's required and to deliver a great education at the same time >> yes oh, that, too. thank you for joining me best of luck with it >> thank you, kelly. >> he is the read that of bowdoin college in maine still ahead, new york mayor bill de blasio could force the city to lay off 22,000 workers. we'll look at what the ongoing economic flo oalutf states and cities could mean for the bond market next. and absorb wet messes, all in one disposable pad. just vacuum, spray mop, and toss. the shark vacmop, a complete clean all in one pad.

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cities and states across the country are having to make tough choices amid the coronavirus crisis putting infrastructure projects is on the back burner. let's bring in ylan >> this is where the rubber meets the road 65% of cities are delaying or cancelling infrastructure fro jek dr projects. a slightly smaller percentage says they are holding off on buying new equipment they are seeing a drop off in revenue from the gas tax, tolls, vehicle registration and tie titling. those are major sources of funding for projects the city relies on hotels and motels now that's dropped off, the city is scrapping plans to rebuild its popular skate park it's forgoing a fire truck worth a million dollars. >> these are huge expenditures

that involve a lot of time and effort and we don't have the money, we just don't have the money. >> the treasury secretary said infrastructure is not going to be part of the next relief package. kelly, the mayor told us they could get ready to be started tomorrow >> wow ylan, no fire truck. no skate park. it is interesting how quickly, timing and again whether we'll have a big package the ways the state budget crisis will be felt >> absolutely. thanks very much cities and states are stuck in a vicious cycle. what does it mean for the debt market here to make sense of this is

tom costlic. welcome both of you. yields are surprisingly low in many cases we have the fed support but this a major problem brewing. >> it is states have come in with record reserve levels however, now is they draw down the reserve levels start realizing pretty decent loss in the revenue side, there's going to be more support that's needed through the cares act and states have received some funds the fed has said up to municipal liquidity facility which based upon the rates it's more of a penalty for high grade issuers but that's the last resort should any municipalities need to tap into any capital.

>> tom, issuance is surging. >> i think there's been less issuance so far this year. let me add onto what you're referring to with financial backdrop i think that's important it's not just infrastructure that's being put on hold the local governments are seeing almost $400 billion of revenue shortfalls and just through april, state and local governments are laid off more individuals than they did in the entire wake of the great recession. we did see 150 billion direct aid in the cares act for state and local governments but that's nowhere near enough. state and local governments need

more unrestricted direct relief. >> why is it that issuance has b been a little light? what's your advice for investors saying i'm looking for yields somewhere? what do you tell them? >> one of the reasons there's been less issuance is there was a good two, three weeks in march into april when issuance that were only a few deals that priced but then finally when we got to the point where maybe mid-april, the market normalized and issuance started up again. let me get to -- your question about where investors can look with regard to sectors for me, the most vulnerable sectors are the sectors that relying on more narrow security pledges or economically sense tifr security pledges. i think they will be like senior living projects, mass transit,

those types of things. one of things that i warn about investor to do is i don't think you need to throw every single issuer out in a specific sector. it was almost 700 days that tells us that even though airports are really looking at some hard times, there's a lot of airports that positioned themselves very well >> that's fascinating. what's your favorite pick in the space? >> i would say the health care space is -- i say that because in the environment we have seen a pretty significant spread widening. recent tighten but still fairly wide >> thank you both. that does it for the exchange.

we'll talk to the ceo of sonic automotive as used car sales are surging. shares of the stocks are up mo th 2% omhe lows. stay with us i'm kent coloma, it's my job to make sure all the packages that go out today get delivered. there are people who can only get food from amazon. when you come into work, that's what drives you. my little one, i would say he's definitely proud of me. every time he sees the blue prime trucks, he says, "daddy, there's your people!" i know every single one of us is here busting

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