it is 5:00 a.m. at cnbc and here's your top five at 5:00 stocks set to snap win streaks and still on pace for one of the best quarters ever americans worried about the spread of coronavirus in the south and west as the white house delivers a new warning about the window to act. >> a developing story this morning as another major energy titan files from bankruptcy amid the commodity crush. new names say they are pulling ads from the social network and a big name from boeing as the

737 max reportedly set to return to the skies it is monday, june 29th, this is worldwide exchange right here on cnbc >> well, good monday morning, good afternoon, or good evening. welcome from where ever in the world you may be watching us thanks for starting on cnbc. let's get to the money on your markets and futures. they're upcoming off a friday's hair cut dow futures implied up 135 points the dow falling more than 700 points on friday dow and s&p 500 look on track to snap two month win streaks although we could turn it around tech also taking a beating on friday but it's still been a great run so far this quarter. the big 5 fang stocks up an average of 29% since april 1st all of this ahead of a shortened trading week the markets are closed on friday

for an early start to the july 4th holiday. hard to believe that we're already approaching july 4th anyway, treasury secretary and fed chair jay powell are set to testify on capitol hill tomorrow with the minutes of the latest federal reserve meeting out on wednesday and the monthly jobs number coming a day early because the market closed it will be out on thursday. now around the world you have red arrows overnight in asia, kind of following our markets friday you can see declines there of 2.3% in japan and of course the european markets like us, we're not trading yet. they are just getting your day started to begin the week and they are traded mixed as well as you can see. all right. now let's come back where health and human services secretary alex azar is issuing a strong warning to the american public over the rising number of covid-19 cases in the south. back with that and more of your top stories on a monday morning. good morning. >> hey, good morning speaking with nbc's meet the

press, the window to act to stem the spread is getting smaller. >> the window is closing we have to act and people as individuals have to act responsibly. >> this coming as the number of u.s. infections are more than double from what they were two weeks ago. cases in texas, the new epicenter of the virus in the u.s. continued to surge with intensive care units now filled to 97% capacity and could run out of beds within the next two weeks. in california, the governor ordering bars in 7 counties including los angeles as the spread there continued new details propping up credit markets. the central bank said it bought bonds issued by companies including at&t and united health and walmart according to the disclosure of the $270 million of purchases made on the first day of buying 21% were of debt issued by firms in the consumer noncyclical sector while 10% were of technology debt and

banks were apparently pulling back from a popular credit card promotion on concerns of borrowers struggling during the coronavirus may leave them with defaulting loans the offers that typically entice borrowers to move their debt in exchange for a temporary 0% interest rate has been sharply reduced from bank of america, barclays and capital one according to sources close to cnbc back over to you. >> a big story there a favorite hobby of some folks out there. thank you very much. all right. with so much uncertainty around the outbreaks the economy and what state governments may do to roll back reopening plans is your smartest money move right now. maybe to just do nothing sit tight and raise some cash or get aggressive joining us is the managing director of macro strategy we had a big market decline on friday futures look a little bit stronger obviously this morning. what should we be doing with our

money right now? >> good morning. well, as you said, you want to be a bit balanced here because this reopening that was such a bullish phase for the market is now fading a bit because of the outbreaks that we're seeing in the sunbelt states and what this would mean for other parts of the country because people have to be very careful so there will be activity so i think that we're in a phase of where the market is consolidating and some risk off tone and that's why you want to be a bit more balanced between cash and risk exposures as we head into the new quarter. >> okay. yeah i mean, listen, is it all about case growth? because we know that cases will only go up over time just as a measure of math. hospitalization rates are very high in houston although hospitalizations have actually been coming down sharply in states like arizona even as cases rise is it all about that or is it all about the fed do earnings matter

what are you most watching closely? >> i think that it's all three of them as you mentioned this hospitalization rate is some what of a political aspect to it in a sense but i mean, then, you know, they're making more activity and the reopening would be rolled back completely where as the fed option really matters, buying corporate bonds and they're going to continue that through september so that's a really important backstop so as we go into the next quarter, the reopening as you go from here will be slower but we're not going to say the lows from march because of that >> everybody i talked to these days which has arguably been not very many and if it is its from behind a mask and six feet and the market has come roaring back this quarter, i held on, i'm almost back to even, should i sell now >> i would not sell now because

as this reopening phase is also shown from april into may-june period, it's that we're going to get that again it's just a matter of getting the right, you know, measures in place in order that the outbreaks moderate there's still a tremendous amount of upside in the reopening trade mind you and decline about 20% since june or most of the leisure hospitality industries there will be more upside in the future but at this point it's a bit of a risk off phase. so i think there's value we just don't want to sell everything at this point. >> it seems like the activity and packed back into closing space like our winter in the northeast is that there's a pent up demand. one of the reasons that we're seeing a spike is that everybody got busted out of their rooms and their houses and went out and maybe overdid it a bit but it does seem like there's going to be a will the of pent up

consumer demand at some point. >> yeah, for sure and i think that that is shown already in april and may and that's something that we could see more in the future. ultimately, people are going to be, you know, adapting themselves to social distancing and then find out that they can go about their business and therefore that kind of demand will actually get stronger so i don't think that the u.s. economy will be really dramatic. it's just a softer pace with this idea that they're supporting the economy so i think that we're in a good spot here it's just a matter of getting it on the right track in terms of the virus outbreak >> all right yeah >> thank you very much. >> when we come back, a once nearly $40 billion energy company filing for bankruptcy. the very latest on chesapeake energy ahead plus a big day for boeing. it's 737 max returns to the

skies but no passengers just yet. phil will be along to explain in ten years to the date today, a wild and profitable ride for tesla stockholders we will speak with a long time bull and shareholder about tesla's next ten years a very busy hour ahead dow futures up 105 we're back right after this.

today's big numbers 88%. that's how much wti has soared so far in q-2. on pace for the best quarter since 1990 but despite the gain the commodity is still down 37% this year. >> it's certainly a big quarter but far from all as well and energy stocks and the run up in crude oil prices the sector eyeing a 24% gain overall since april 1st but the green arrow is not without a major caveat breaking over the weekend, chesapeake energy and the second largest gas producer filing for chapter 11 bankruptcy protection the company unable to overcome record low energy prices amid the pandemic and a surging -- sorry about that, surging debt load so what does all of this

mean for the sector ahead? joining us now is jeffreys energy equity analyst. good morning here, i appreciate that what do you make of chesapeake's bankruptcy obviously not unexpected we reported this could happen back in mid may. mid to late may with many others does it have any kind of a triple effect on the industry at all? >> yeah. i don't cover chesapeake so i can't comment too much on them directly but it's very painful for a lot of companies and if you don't have a stronger balance sheet the situation is pretty precarious right now. they're not really sure. and i do know that even for very large companies like the ones that i cover there's significant cash flow that's putting a lot of pressure on it. >> so where do you think it heads off jason? >> well, i think that the market is still in significant

oversupply prices are going to remain pretty muted i don't think that that will be the case until the fourth quarter so i would expect that prices would stay high 30s to low 40s until we get into it next year. now i do think that if opec plus is compliant with their production targets there's a real possibility that we could get inventories back to normal conditions by next year and that's when you start to talk about it >> okay. is there anybody that benefits not from chesapeake's bankruptcy per se jason but the idea that so many companies have had to hunker down whether it's chesapeake and others in bankruptcy protection that collapsed on a weakening balance sheet and are not spending any money. are there companies that you cover that in this damage they might be able to actually grow orpik up some assets on the

cheap? >> i think overall it's right for that and having less access to capital is an important part of rebalancing the market over the medium term. and it is generating a lot of free cash flow as ben fitding from -- as benefitting from the overall situation and second of all because this is ultimately the path that this is a more sustainable oil price for the medium term. >> who is the best balance sheet company in your coverage universe both of these are well under

20%. >> okay. any other companies that you are recommending to investors aside from them? >> the only other one is onb in europe and it's similar characteristics. very balance sheet leverage. >> don't worry about it. thank you very much. adding a touch of home to it thank you. i appreciate that. did you know what the most expensive s&p 500 sector is? i had no idea.

dominic, the father of one or at least two beloved hounds joins us with more. >> two you're right hopefully they are upstairs still curled up in my bedroom and not barking at me either but it is consumer discretionary. if you take a look at the performance of the consumer discretionary sector over the last year it tracks closely to the overall s&p 500. now the s&p 500 slightly outperformed but i want you to look at this chart and for listeners out there, we're showing just how closely correlated that we're talking about that trading relationship. now the forward price to earning rashs o ratio, it's in the next year based on forecasts you can see there, 48 times forward earnings is what they trade at right now you can see it times forward earnings at the overall s&p 500.

that makes consumer discretionary the most expensive sector what is driving that it may be no surprise here but amazon is by far one of the biggest drivers of the sector and it's driving the valuations as well. amazon currently trades according today at a around 86 times forward earnings the big apparel company behind brands like tommy hilfigger and cavliv so it's one to watch. it's getting a little bit more richly valued as you can see there. >> all right double dog dom when we do those valuations do we have any idea what that denominat denominator, the e for earnings is going to look like in a year? >> no.

so here's the deal it's always based on predictions from analysts. now there's questions about whether they can get it on a consensus basis. it's even worse now because of everything else. what you have a situation where there's no clarity about what earnings are going to look like down the line. as you look at the forward multiples it's something to keep in mind. if no one really knows what companies can make given the virus trajectory then it's hard to make a forward price attorneyings so that's what you have to focus on now because no one knows what it's going to be >> you have to focus on something. and it's very hard right now a pleasure good to see you. >> good to see you. >> take care, buddy. >> still on deck, talk about a

fall from grace. why shares from underarmor may drop more this morning they're down or were 4% until a few minutes ago. we'll get you more on the underarmor story as well futures are up 127 points. we're back on worldwide exchange right after this dear fellow business leaders and technologists, i see all the amazing things you have been doing. you are transforming business models,

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welcome back and good monday morning. dow futures looked different than on friday i'm not saying that there's a bounce back happening right now but we're in the green with futures up 133 points although it is of course very early just about 522 here on a monday morning. let's get a check on this morning's other top headlines, particularly those outside of the world of money and business. he is in new york now with those. good monday morning to you. >> good morning to you, brian. there's growing questions about an alleged plot to have u.s. service members killed lawmakers on both sidesof the aisle want to know what the president knew about reports that russia was offering the taliban bounties for killing american soldiers. overnight, president trump tweeted that the intelligence community did not find the information credible and therefore did not report it to him. the mississippi state flag is getting a make over after more than 120 years after weeks of

mounting pressure and protests state lawmakers voted to remove the emblem from the state flag the commission will design a new flag that will keep the slogan in god we trust. voters will be asked to improve the new design on election day finally courses say that new england patriots have signed quarterback cam newton to a one year deal with a relatively low salary but plenty of incentives. the first draft pick of 2011 will replace tom brady news of the deal came the same day the patriots were fined $1 million and docked a third round draft pick for filming the bengals sideline we have news to start off our day. >> is there going to be football that's the news that we want to know. >> we have to keep making moves and i'm staying hopeful and staying optimistic that's all that we can do these

days >> are you a texans fan? >> i am. >> by the way, my team the chargers, they're used to not playing in front of fans so they might actually have an advantage. >> it won't be weird at all for them. >> no, it's just another home game everyone is cheering for the other team. >> that's right. >> thank you very much appreciate it, buddy take care. straight ahead, facebook and social media companies underfire as the list of companies saying they could boycott the platforms grow she is here to explain the fall out. what it could mean for facebook's bottom line we're back right after this.

surging virus cases but stock futures taking it in stride for now, they are up 130 facebook and other social media companies facing the heat as more companies say it will boycott the platforms unless they clean up their acts and their ads and tesla's decade of disruption ten years after the ipo. we're breaking down with the company and it's stock maybe next it's monday, june 29th, this is worldwide exchange right here on cnbc >> all right welcome back or just welcome and good monday morning, everybody i'm brian sullivan i hope you had a nice weekend. thank you for joining us here's how your money and investments look as we're

halfway through the 5:00 a.m. hour stock futures are rebounding off of friday and we're seeing stock futures up 130 points right now. of course this comes after friday's more than 700 point sell off at the dow. the dow and the s&p 500 by the way on track, at least now, we still have a couple of days left to snap two month win streaks although like i said, we have two days left. tech also taking a tumble on friday but still on pace for one of the best quarters ever. in fact, the 5 fang stocks up 35% since april first but overall the markets do appear to be growing more nervous about a surge in covid cases across hot states like florida, arizona, california, texas, everybody is crammed back inside because of the heat texas, hospital capacity, it's largest city according to one report icu utilization in the houston area is currently at 97% with two weeks of capacity remaining. something to watch another developing story on this

monday morning, chesapeake energy filing for bankruptcy protection late yesterday. the move comes as the company and the industry have broadly been rocked by a drop in natural gas prices and crushing debt load as part of the restructuring $7 billion in debt will be wiped out. it has secured $925 million of so-called debter infinite possession financing in order to continue operations during the bankruptcy process it had 175 operating rings with operations across the united states 175. just for chesapeake. compare that to today with all

american oil and gas companies having just 266 in total running right ow i know that they're favorite of day traders. that stock is likely worthless more on this at 7:00 a.m but we're not done here on worldwide exchange let's get back down to the broader markets and the major averages coming off big losses

on friday. however two weeks does not a quarter make i am told the picture looks different with all the major averages on track to score their best quarterly performance in at least 8 decades. this as wall street gears for another big and shortened by the way week ahead you got fed chairman powell and the treasury secretary testifying before the house financial services committee tomorrow and you have the minutes for the fed latest meeting and the june jobs report also out later this week the numbers come out thursday for jobs because as the graphic shows, that's a fireworks sound effect markets are closed a day early joining us now is the president at apex financial. all right. there's our menu for the week if you will is it what we layed out there or

continuing to watch the covid cases? >> in terms of top of mind for me it's continuing to watch the covid cases. many of us started to go on vacation but covid-19 clearly has continued ripple effects and it's going to have a downward pressure on consumer sentiment and i think that it bears watching through the remainder of this year and quite frankly on into 2021 is it really the hospitalization number maybe you are a doctor i have no idea you might be on the side for all that i know but some people are like the cases are booming and in arizona the hospitalizations are weighed down and not the case in texas. what specifically do you watch?

but hospitalizations is key and more and more people realize it and folks are getted tested. my wife got tested because someone in the facility where my daughter works tested positive so it clearly hasn't gone anywhere. >> no but it shows that people are desperate to be around other people is there anything market related? nick related >> yeah. absolutely. >> that you're also watching along with this.

but that continued where we saw this huge 50 day run up in the s&p 500 biggest ever but there is a clear disconnect between the markets and what is going on in the main economy and there's a supply chain issue broadly speaking do you think that it's possible another connection in the equity markets? >> it's possible and dare i say

likely i'll work on the sound effects thank you very much. have a good weekend. >> you do the same. >> all right now to the growing story around facebook and other social media companies. >> facebook will pause advertising on all social media platforms. it's one of the largest advertisers in the u.s. last year and also plans to have discussions internally with media partners and civil rights organizations to stop the spread of hate speech and threats online >> shares are under pressure this morning amid the backlash and for more we're joined by sarah fisher media reporter. thank you for joining us

we can say there's no room for hate speech anywhere however these platforms are desperate to not be labeled publishers. they're not responsible for content generated by users because if they are they open themselves up to a world of hurt >> it's also very important to their business if facebook and twitter and other social platforms were to start moderating content they would have a lot less content to produce and show people and a lot less inventory to run ads so it's critical that they maintain a hard line for their business and try not to, you know, meddle and moderate too much of the content that's being uploaded on their platforms.

but they're fed up with this policy 23 you're a big company, do you want your adds running next to some potentially harmful or violent content? no so this is their way of putting social media platforms in check and saying we're not going to tolerate our ads showing up against bad content on your platforms no matter how cheap they are and no matter how efficient they are from a targeting perspective. >> but here's the thing about facebook maybe a lot of casual users don't understand so they have what i would call a third party ad business where they would place ads on things

like tik tok and other platforms. do we know if this boycott might expand to that or if it's the platform. >> a lot of these cover facebook owned platforms within the ad network so facebook and instagram which are the two that own adds they also own what's app and to date they don't run a lot offed as the rates are cheap and efficient and everyone is asking me is this going to impact facebook's bottom line they're set to report earnings in a few weeks for the third quarter and this is what i have to say about it. probably not if you were to take a look at what the top 100 brands spent on facebook collectively last year, still 6% of the revenue. they make the majority of their money from small and medium sized adds and reputationally

it's a problem but is it going to impact the revenue long-term? at this point it looking unlikely. >> be sure to check her out. coming up, taking the first steps in returning to the sky. phil is here to break down the pivotal test that boeing is set to undergo with trump 737 max jets but as we head to break, let's check out this morning's other top headlines. vice president pence cancelling campaign events in florida and arizona this week amid the strike in virus cases. china approving the use of a coronavirus vaccine by the

military and it's some what efficient and airbnb ceo says travel will never go back to the way that it was. in the meantime, airbus's ceo is forecasting a 40% drop in production over the next two years due to the virus worldwide exchange is back and dow futures up 1 66

we'll kick it off with underarmor the company said ucla wants to end the record setting 15 year $280 million deal with the school the school is expected to fight that move. also watching shares of disney as it delays the release of the live action version of mulan it's now slated today beau after trying for a july 24th release this move follows the recent decision to delay christopher nolan's for a second time. and amazon workers in germany going on strike today. the employees at 6 of the companies sites in that company are protesting safety concerns

at workers tested positive for the coronavirus. the leaders say this strike would last two days. back over to you the aerospace giant and federal regulators set to begin a piv tor pivotal test think of this as a final exam. this is not just any test flight what happens in the air? take a look. sitting to their right a co-pilot from boeing with another flight engineer in the jump seat. they'll fly a specific route

that's detailed including exact parameters it's the script of specific scenarios that the pilot will follow in the air with data constantly being sent to computers and engineers in the back of the plane and on the ground but the real focus will be the rework mcass flight control software it was designed to trigger in certain situations like take offs when the nose of a max could rise too much. to keep that from happening it lowers the nose while the plane accelerates. software has been redesigned so it can only be triggered once and not repeatedly which was a primary factor leading to the max crashes. the pilot will not deviate from the flight test card so there's no mid flight changes and

nothing is done on the fly and when they land the test flight may be over but analyzing the data collected in flight will just be starting it will happen probably around 1:00 eastern time it will last two to three hours and there will be more tomorrow as well as on wednesday. what we don't talk about is the fact that it's been flying around the country anyway as they move them correct? it's not like no airplane has ever been in the sky the last couple of months. >> correct they have been moving them around and also been doing scores of test flights as well as hundreds of simulator test

flights so boeing has a pretty good handle. a very good handel on exactly what they have done to fix the 737 max. >> when will we get information about how the test flights are going? >> probably won't get anything official what we will likely have is along the way, something will be leaked out by somebody involved in the process and it's actually titled the 737 max himself within the next week to two weeks if he does that as scheduled or as expected that's a good indication that the recertification flight went well. >> phil, we appreciate you joining us thank you very much.

>> all right on deck, talk about a decade for tesla and the electric car industry tesla up more than 5,000%. that's right 5,000% we're going to speak with one of the companies biggest bulls on why she says the run may actually just be getting started and always remember as we start to travel a little more. get out of the house, you can always watch or listen to us live on the cnbc app from where ever you may be. a little more traffic and a little more activity there new york's times square. we're back dow futures up 179

all right welcome back it's been a wildly profitable time for long-term tesla investors over the last decade the company making its trading debut ten years ago today at $17 a share. now if you were smart or lucky enough or knew a banker and got in on the ground floor and held

on, that investment up more than 5,000% of course it's not been a completely smooth ride with elon musk generating headlines along the way. >> we had an incredibly positive outcome from the smartest investors in the world [ cheers ] ♪ >> we have an amazing product to show you tonight >> it's what goes into making the model three. welcome. welcome. >> it blows my mind and i think it will blow yours. >> he says that he is thinking about taking tesla private

$420 being the price he would do it at. >> i mean it's legal right welcome to unveil. >> are you sure? >> yeah. today surpassed $1,000 per share for the first time >> we cannot unsee the dancing joining us now is an analyst with a major tesla shareholder and $7,000 4 year price target on the stock.

we think there's 3 to 4 years ahead of the competition on batteries, on autonomous hardware and autonomous data collection i think what is really interesting about the current period is that during the lockdowns, you know, we have seen the traditional auto maker space really struggle and we know that the future is really all electric vehicles and if you're a gas powered car maker, your core business is on fire right now. so we think, you know, coming out of this, we could see some consolidation in the auto space and i think that it will only become more clearer that tesla

is really a leader and sort of it was smart to start on that early versus to have to scramble to figure that out now when you have to cut cost in other areas of your business >> when you say consolidation in the auto space, i mean, i guess a few years ago i wouldn't have asked you if somebody were to buy tesla. now i need to ask you, tesla, which has a bigger market cap than the legacy companies might be the buyer what is consolidation look like to you >> well, you could certainly see mergers. i don't see tesla necessarily buying another company and gm cut their employees and their autonomous division and their prize division and i think that not every auto maker is

going to succeed in this transition so to be early and to be as far along and at the scale that tesla is today is very important. >> your job probably currently is to poke holes in your own case a good investor will do that i'm a bull by nature and i believe in this and i also can't ignore that. what would be the biggest bear case you'd have to make if somebody said hey make the biggest bear case? >> well, i think, i'll tell you what we often hear we often hear that it's possible that evs are sort of not the long-term future or that because of a small subsidy cut back there will be a decrease in demand i think that that's very short-termed focused the work that we have done is really a cost equation battery costs are declining while gas powered cars are becoming more expensive because of emission standards and

batteries are writing a technology cost decline curve which is decreasing at an incredible rate basically because it's early industry. so you can see that tesla is writing that battery cost decline curve. i'd say another argument that i often hear is that autonomous won't happen and we think that tesla could start a ride hailing network in the short-term with human drivers and that could be profitable as well >> we have to leave it there thank you very much. happy ten year anniversary thank you. >> thank you. >> dow futures up to 180 folks we'll see you tomorrow at worldwide exchange squawk box is next

good morning, covid cases surging in several states. now texas, florida, and california are reimposing restrictions to try to stop the spread of the virus. and stocks pointing to surprisingly solid gains after friday's sell off kind of confounding all the headlines and what you're seeing in most of the major newspapers this morning up almost 200 points and boeing shares rising and the ground at 737 max could begin today. it's monday, june 29th, 2020 a four day week. squawk box begins for shortened days and they are getting shorter. walk box begins right now.