since its june 10th, 324 high. i think you go long with a 265 stop i stayed long nike i think a lot of people are putting money from nike into lulu >> weis. >> baba. the stock goes back, regains the old highs and trades through it. >> good stuff. everybody have a good day. thanks for watching. kelly, it's all yours. hi, everybody, welcome to "the exchange" on this monday. investing without direction. states are rolling back part of their reopenings, covid cases are rising and companies aren't giving guidancguidance. and facebook is facing more and more backlash. more and more companies are pulling advertising. the stock is actually trading higher this afternoon. we'll debate that. and just three days, the story of one small business who opened its doors and closed them right back up again. what happened? we'll speak with the owners about that ahead but we do begin with today's rally.

dom chu is here with those numbers. >> it really is a situation where all of these covid headlines, the economy is front and center the big drop on friday, the big gains today. you're seeing, kelly, we are right now session highs, 434 points currently in the dow right now, 458 or thereabouts was the high for the dow so far so we are near those highs for the day. the s&p 500 still decently above that 3,000 mark. 3,043. the nasdaq up about 1% better-than-expected economic data, specific oally on pending home sales these are houses that have had contracts signed but not closed. it could be a leading indicator for future existing home sales the home builders up 4.5%. you can see the general trend on some of the optimism off the covid lows for some of those home builders coming today and if you're looking for optimism coming back about perhaps the virus trajectory getting contained a little bit more, look at the travel and

leisure stocks american airlines up 7%, $13.25. royal caribbean up 6%. even marriott, 5% gains there. so travel and leisure certainly very green today kelly, i'll send things back to you. the coronavirus case count continues to see record spikes in several states leading more of them to roll back reopenings. new york governor andrew cuomo says he's considering slowing down phase three reopenings. let's bring in meg terrell meg, what do we know at this hour >> hey, kelly. well, a milestone we're approaching tomorrow the w.h.o. says tomorrow marks six months since it was notified of the virus in china. we've surpassed 10 million cases worldwide. they said we are seeing concerning spikes even after places have taken unprecedented efforts to try to contain the

virus. here's what he said. >> some countries are now experiencing a resurgence of cases as they start to reopen their economies and societies. most people remain susceptible the virus still has a lot of room to move we all want this to be over. we all want to get on with our lives. but the hard reality is this is not even close to being over >> so emphasizing that we need to be doing the testing, isolating, contract tracing. here you can see various states have paused their reopenings or reversed some of the reopenings. california over the weekend joining texas and florida in closing down bars in some counties as you mentioned, new york considering slowing the

reopening of indoor dining and malls in new york city as governor cuomo talking about what he was seeing was a lack of compliance with social distancing being observed in the city, kelly. so even in the areas that have seen the most progress like new york, still being very cautious. back to you. >> real quickly on this, meg, what would pausing phase three mean >> it would be pausing the moving toward the reopening of indoor dining and malls specifically is what he was talking about. >> got it. which here in new jersey we just started reopening those malls today. i can tell you the parking lots were packed. the traffic getting into them was much heavier than i expected but in other news, meg, very important news today, gilead came out with pricing for remdesivir a lot of people focusing on the disparity between the u.s. and international pricing. bottom line, how much is this going to cost? >> if you are a u.s. patient covered by commercial slninsura,

it's going to cost you 30% more than government insurance. $520 for u.s. commercial insurance versus $390 for the government price the average course is about six vials over five days so that's about $3,000 for commercially insured patients so a 30% price difference in those. we talked with gilead's ceo and he said that's just the way u.s. pricing works. gilead had been up as much as 3% on this news today, although it is flattening out here analysts, kelly, are generally projecting this to mean gilead will make about $2 billion in revenue off of this drug this year given that they're spending a billion dollars on it, that's a billion dollars in profit. >> meg terrell with all the latest headlines for us. it doesn't help investors that meanwhile 40% of s&p 500 companies have now pulled their guidance this quarter. joining me for more, kim forest is chief investment officer.

kim, your thoughts overall on this market. pretty nice rebound today. last week was a little messier. >> well, i think everything is all about covid-19 and that is what the market has its eye on if the news is good, we go up. if the news is not that good, we go down. and i think we're really, really keying on the things that can save people, which are things like gilead's drug and then a vaccine. so we've got a little good news on that today and the market goes up. >> so what would you do -- do you stick with technology? do you stick with a lot of the frankly high priced stuff that has been working and points toward a technologically transformed future >> i would although i'm kind of a thrifty gal and i like to buy things on sale, so i'm looking for companies that are not necessarily in the spotlight of

wall street. but i am looking for companies that can add productivity. i think that's key because that will never go out of style regardless of how else our world is changing. >> yeah. and some of those names -- is that when you look at micron and xilinx and that sort of thing? >> exactly, exactly, and those are all in the guts of technology. >> i'm sure they'll appreciate that description but that is important. bryce, let me turn to you and bring you in, ask you about this issue with guidance. we basically don't have any. it's true that makes it difficult to get that clarity on the next quarter, but i don't know, is it just -- we know from nike earnings from so many other results that earnings are going to be all over the map so does that make it more difficult for you or is this just par for the course? >> well, i think it creates opportunity. when there's the most amount of uncertainty is when there's the most potential growth in a stock price or in a corporate bond

so on one hand, you know, it makes it very, very difficult. it adds a lot of volatility to your investing experience and maybe overall in your portfolio you want to dial back the risk but when there's maximum uncertainty, a total lack of visibility, that's when you probably should be buying. so we're firmly in the camp of buying on dips we like the airline trade. we also like a basket of reets, whether it's rental property or warehouse property or what it seems like people are assuming the worst when there's no clarity at all. so that's the time to kind of try and be an opportunistic investor, we think. >> no, i take your point when you have that confusion it does create opportunities, but how do you know you're not going to get burned? of course this could turn out much better than people are expecting, but i go back to buffett and selling out of the airlines and knowing with some of those balance sheets it's going to be a really tough slog.

>> we think there's a huge amount of pent-up demand you saw the housing data this morning look good. we think consumers are chomping at the bit to spend. i think your observation about what's going on at the malls is there. so all of that does lend us a little bit of comfort that we won't get burned you could, and there will be areas where you do you have to have a little bit of the large numbers on your side knowing that you're going to have a lot more winners than losers but we're still thinking that there's just a huge amount of savings that has been retained by consumers and they're itching to spend it. so i don't know if there's going to be a big surge of economic activity in the fourth quarter of this year or first quarter of next year, but it's coming so you're going to take some hits along the way i think of it as hitting some air pockets on the stock market, but when you look out six, nine months, i think it's going to be pretty positive. >> let me finish with you, kim,

going back to this whole idea which we know is true with the market good news helps equities, bad news we see sell-offs. we could be in this environment for a long time. i guess until there's some breakthrough on the vaccine full stop, we're going to be in these cycles so are you opportunistic about that >> i am, but i'm also playing longer term themes i agree with the other guest that not everything is going to collapse, that's for sure. but i do think that there will be losers here and i want to stay as far away from those as i can. so what i'm doing is trying to imagine how the world is going to change. i do believe that even when we get back to whatever a new normal is, it is going to be a new normal an easy place is work from home. i think a lot of people really like the flexibility of it and i think a lot of companies are looking into this. so commercial real estate might be one of the biggest losers of covid. and i think that you have to

think like that, really think long and deeply about what areas are going to decline and what are going to persist and that's where you have to put your money is the places where you have a pretty good idea that people are always going to want that service. >> it's good to have you both here today, kim forest and bryce doty. we heard briefly about the housing numbers. they were strong this morning. home buyers rushed back into the market in may and that resulted in record home sales, diana olick is here and has more on these stunning numbers for us. >> yeah, kelly, we expected a jump but nothing like this talk about your v-shaped recovery pending home sales which are measured by signed contracts on existing homes jumped 44% in may compared with april. still down 5% from a year ago but that's the biggest jump in the realtor survey history going back about 20 years. sales were up across the nation, but the strongest monthly jumps were in the northeast and west

the northeast, however, still much weaker than a year ago while the west is nearly flat. buyers were helped by falling mortgage rates, which are hovering around record lows, but there are some red flags some say this may be pent-up demand from march and april when sales plummeted. and if the recent spike of covid cases causes shutdowns again, that could hurt the housing market as well. >> 44% increase. not a number you wake up to every day. diana, thanks very much. coming up, iconic brands continue pulling ad dollars from facebook some are boycotting social media altogether in fact just now clorox announced it will stop ads from december facebook stock actually higher today, at least this afternoon it's up just under 2% but it dropped 12% last week. how much of a lasting impact will off this have plus boeing shares jumped after the 737 was cleared for test flights in fact one just took off moments ago. what happens now how long until passengers get back onboard

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welcome back shares of facebook are reversing higher today they're up about 1.5% despite the growing ad boycott of the

platform just moments ago clorox announced it will pull its ads through december julia boorstin has the latest. >> the amount of facebook's ad revenue that is at risk is certainly growing. among the brands that are boycotting facebook is starbucks, spending an estimated $95 million. it joins honda, coca-cola, unilever, verizon. denny's and clorox just joined some are pausing spendsing for a month in the u.s others are pausing spending indefinitely and globally. all of ththe growing boycott indicates dissatisfaction with mark zuckerberg's move to announce he was cracking down on hate speech and ads and labeling incendiary posts by politicians.

clients will see a decline in online sales if they pull ads from facebook in july because they say facebook has the highest return on investment of the digital platforms. now they're working to move their clients' ad dollars over to snap and pinterest as well as digital video platforms like hulu, peacock and youtube. with 82% of analysts having a buy or overweight rating on the stock, the majority are saying now that the boycott's impact will be relatively limited they believe facebook will make more policy changes. kelly. >> all right, julia, thank you let's discuss if this will have a lasting impact on facebook for more, i'm joined by brad gasworth from webb bush securities also casey newton, a silicon valley editor at the verge brad, let's starts with you. your note made tons of headlines all weekend because you're one of the people that think this will have an impact on facebook's business. how big and what options do they have to address it >> yeah, they really do need to

address this in a way that advertisers and companies really see fit. i mean clearly a majority -- the lion's share of revenue at the company comes from advertising, that's no surprise you know, the one thing if you look at the facebook platform, it's still considered a must have as i pointed out earlier, you're getting a really good return on investment with those ad dollars. the thing that we have to watch is currently a lot of these advertising companies are ad dollars that are being moved away for the month of july or domestically if you look at the naacp and the adl they're pulling for this global pull. if you get a global pullback this will have a longer term impact all of a sudden if you get good return on investment from pinterest, snap or some of these other platforms, maybe these advertisers start to spend at their other platforms as well. >> interesting so a company like clorox that just announced its boycott through year ending, if they put those marketing dollars to work on other social media platforms and like what they

get, they might not put as many back with facebook you say facebook needs to address this quickly and effectively in order to stop advertising exits from potentially spiraling out of control. what does addressing this issue effectively look like? >> that's the trill januaion dor question zuckerberg needs to come out and have a plan to stop some of the hate speech and really have a good -- a real detailed policy, not a near term band-aid but have a policy at the company that these other customers of theirs feel comfortable advertising on their platform. right now there's a lot of things that go under -- sort of under the hood i think these companies are just fed up with it so now will they do it facebook is one of the best platforms overall to use advertising to get the broadest reach for the customer, but i do expect zuckerberg and company to do something to address this what exactly that's the great question.

i think they have to beef up and look into their plan but they can't let it slide. >> you still have a $250 price target on this stock about 38, $40 from where we are today. so it's not as if this is a selling opportunity of facebook per se, but i'm curious if the company waits this out for a couple of months, look what happened after cambridge analytica, the stock was in the 100s, back then. everybody left everybody, i believe, correct me if i'm wrong, came back. is the same thing going to happen this time >> it's such a good question you're addressing some of the most important points here first of all, this is -- this is the best platform with the broadest reach on the planet will it go away? very unlikely. i think the real thing to watch here is how quickly do they address and are they able to address these concerns in a manner that really goes to their customer base. i think they're going to need to so the overall net is -- i mean

even to your point, clorox just a few moments ago announced they were pulling unilever is only pulling domestic, not global spend i think you'll see more and more join this. i think it will have a near term impact for sure. it's almost impossible for them not to see and get a hit to near-term financials that being said, on the medium to long term, i think this company is still a must have in terms of advertising spending and broad reach, so i do expect the company to come with the policy that does make sense. what exactly does that entail is the greatest question but i do expect them to do something that addresses it. >> it's good to have you today, thank you. brad gasworth with webb bush let's turn to casey newton now casey, i'm starting with a different news piece that just came in, maybe illustrates what brad was just talking about. reddit said it was going to ban hundreds of sub-reddits that has

hate speech and that includes the pro trump reddit what does this say to you and does it have any bearing on the discussion we were just having about how facebook moderates its platform >> clearly there is a lot of discussion right now about what platforms should do about the hate speech that gets put onto this platforms for years now, reddit has staked out a position of being an extremely pro speech, pro expression environment but they have also been under increasing pressure, especially this month with all the black lives matter protests, to do something about some of the explicit hate speech and incitements to violence that they have been seeing on their platform and so today they rewrote their content policy basically and their new first rule explicitly bans hate speech and so as a result, as you mentioned, the donald is going away along with a number of other sub-reddits who have violated their rules so this is a major announcement. >> but do they have a lot of

advertising? this is not driven by the advertising community, is it is it more a regulatory move >> i think it's more in response to their own user base something like 800 sub-reddits signed a petition earlier this month asking for the company to do more about hate speech. some of those forums went dark for a day, prevented users from posting, so there's been a lot of internal activism within the community arguing for policies like this that would drive out some of this explicit hate speech and incitements to violence. let's turn back to facebook now and what you think they might be likely to do here to brad's point to address this issue effectively before it spirals out of control >> well, look, i think that the hype around this boycott is getting a little bit out of control. at the end of the day, these brand advertisers on facebook make up less than 10% of facebook's overall advertising the bulk of facebook advertising is direct response advertising

those advertisers aren't going anywhere so you're living in a time where ad budgets are shrinking anyway because of the pandemic. i think you've got some companies that, yeah, sure, they don't like their content being next to hate speech but they're also just looking for a good way to get some retweets by announcing that facebook is bad on twitter so i'm really pretty cynical about this whole thing and don't think it's going to have much of a long-term effect on facebook at all the number one reason why is look what they're asking for facebook has policies banning hate speech. until they can get more specific about what they want, i'm going to continue to be cynical. >> of course if these advertisers come back, you'll know it was a tempest in a tea pot. what if longer term facebook is a toxic platform and it loses that 10% of ad spend >> well, i think as long as a direct response advertising on facebook continues to work as well as it does, it's just not going to have that big of a long-term effect maybe some of those brand

dollars will go to tv, other digital properties, but, you know, at the end of the day there's a lot of people who can still spend a dollar on facebook to make $2 of revenue. as long as that's the case, i think that this sort of ginned up controversy over hate speech policies just feels a little ridiculous to me again, hate speech is banned on facebook so if your problem is facebook isn't doing a good enough job enforcing its policies, maybe the actual conversation is why is facebook as big as it is and should we put regulations around that. >> i actually want to introduce a third topic today, which is pretty fascinating i don't know if you saw the news that india will now be banning tiktok and wechat. these are chinese apps they banned a bunch more as their skirmish continues speaking of facebook, this would be a huge boon for wechat,

wouldn't it? to me it seems like a pretty big move what are your thoughts >> i absolutely agree it is a big move tiktok has been temporarily been banned in india before indian regulators tending to take a stronger hand on this than we're used to seeing in america. my expectation is that this will get resolved but i think what you're seeing is that india in particular is paying a lot of attention to tiktok's data retention policies and it's ralliziy realizing tha diplomatic tool as they're attempting to navigate this conflict with china. one of the levers they have to pull is the economic relationship that they have and the fact that hundreds of millions of indians love using tiktok and now they can't anymore. >> do you think we'd ever do the same thing >> oh, man, i would never bet too heavily on the u.s. government regulating big tech >> so cynical in so many ways. casey, it's been a pleasure. thank you, sir, we do appreciate it. >> sorry. >> casey newton of the verge

joining us today. coming up, spending and swiping. new data suggests people are buying more even as covid spreads. the firm will join us with those details. plus one small business in arizona reopened its doors and closed them three days later we'll hear their story you can always watch or listen to us on the go on the cnbc app. "the exchange" is back in a couple

welcome back to "the exchange" everybody. markets are at session highs the dow is up just under 500 points it's by far the outperformer today. the s&p 500 is up 36 points. the nasdaq up a little less than 1% or 90points check in on the sectors. as you can imagine, it's not technology leading the way today, it's industrials, materials and energy so definitely a rotation there in terms of leadership

the industrials are up nearly 3% today. on some individual movers, how about shares of under armour today. the company says its endsing its 15-year, $280 million apparel relationship with ucla only four years into the contract. under armour says this is because of a lack of marketing benefits it expected from ucla the university says it will fight to end this partnership. a huge revenue stream for them under armour shares are up nearly 8% on this news. shares of coty are higher after announcing they'll pay $200 million for a 10% stake in kim kardashian'smakeup brand it has a 51% stake in kylie jenner's brands and it is up 15% today. chesapeake energy has officially filed for bankruptcy. we've been reporting on this time and again, whether they were going to or not it follows a financial mess at the company with sources telling our david faber there were no budgets, a massive wine collection, a nine-figure bill

for parking garages so the drop in oil and gas prices adding to that pain. the company is $7 billion in debt will be wiped out through this restructuring chesapeake energy shares are halted entirely and not trading right now. but this had been one of the biggest stock movers of the year as investors tried to figure out whether that official filing was coming. here's a surprising twist on consumer spending of the credit card usage is rising even in places where covid is spreading rapidly. jpmorgan tracked spending habits of its 30 million credit and debit card holders and said spending overall is rebounding it's down less than 10% from this time last year. joining me more is jesse edgerton from are jpmorgan jesse, it's good to have you back are you seeing overall spending rise even in places like texas, florida and arizona? >> yes spending has slowed a little bit and it's not rising as fast in texas and florida as it is like

new york and new jersey. they're still bouncing back from the lockdowns. but on net, spending is still going up a little bit even in those places like texas and florida. >> are you surprised by that overall, the resilience? >> so far i think. i mean we'll see how it plays out here you know, certainly we did have a big hole to dig out of with a lot of room to bounce back we've always been expecting a partial v-shape where we get a fairly rapid bounce off the bottom but i would say that the virus case numbers are starting to look pretty scary in places like texas and florida so i would not be surprised if we see a pullback here. >> overall, what do you think is going on with the recovery based on this consumer spending data you could argue credit card usage is up because it's out of desperation that people have to rely on that in order to keep spending is there any way to figure out if it's a bad news or good news phenomenon >> well, certainly at the beginning of the virus episode, we saw these big jumps up in essential spending and things

like supermarkets and hardware stores, discount stores, things like that. but over the last month or two, we have been seeing these more gradual rebounds and more discretionary spending like restaurants, lodging, you know, slowly and airlines, things like that so i think we are seeing some slower bounce in that discretionary spending too. >> you say it's largely the younger generations, which will bear watching in the weeks ahead. but how are they faring spendingwise relative to the older generations? >> yeah, that's right. the younger generations like pli millenials and generation z. especially in texas and florida, they had led the bounce-back as of a month or two. they were clearly ahead of both new york millenials and baby boomers in the south but more recently, the new yorkers have been catching up. so new york millenials have had a strong couple of weeks of spending here. they're nearly caught up to the

texas millenials in our data also starting to see some rise in new york and northern state baby boomer spending. >> interesting the last question, it is very encouraging to think that spending overall is down less than 10% from last year but it's pretty terrifying if we are to stay at this level does it look like that is plateauing off or do you think it's possible we'll still rise ultimately and maybe even meet last year's spendsiing levels >> it's a good question with the virus spreading. these places in texas, florida and arizona where the virus is spreading the most rapidly, those are the same places that spending activity had risen the most as of a couple of weeks ago. there seems to be a link between the economies reopening and people going back out to restaurants and other activities and the virus spreading. so i think we'll have to watch carefully to see how people's behavior changes and whether we get more policy restrictions

like we did in florida and texas over the weekend so i would have to think we'll see at least some partial pullbacks in some of these categories and some of these places where the virus is spreading rapidly. >> we will look forward to the next update. jesse, thanks for the granul granularity, it's fascinating. >> sure. coming up, reopening and then reclosing we'll talk to one business owner who opened his doors in arizona and had to shut back down three days later we'll tell you why. plus 25% capacity just won't do with limitations like that, an economic recovery will be hard to come. he'll join us on "the exchange."

welcome back to "the exchange." let's check in with sue herera for our cnbc news update welcome back, sue. >> thank you, kelly. good afternoon, everyone here's what's happening at this hour the city of jacksonville, florida, will require people to wear masks in public indoor settings beginning today at 5:00 p.m. florida has seen a huge spike in coronavirus cases over the past week with more than 46,000 cases confirmed in that time meanwhile, australia reporting its biggest daily rise in coronavirus cases in two months australia's second most populous state is considering reimposing restrictions. the nfl fining the new england patriots $1.1 million for filming the field and the sidelines during a game between the cincinnati bengals and the cleveland browns the nfl also taking away the patriots third-round draft pick

in next year's draft. and the rolling stones threatening legal action against president trump for using their songs at his rallies the rolling stones 1969 song "you can't always get what you want" has been a popular song at president trump's events you are up to date that's the news update this hour, kelly. i'll see you next hour. >> all right, sue, thank you very much. now, as we continue to track the rise of covid cases across the country, arizona just reported its highest daily virus case count, nearly 4,000 on sunday it's seen cases surge 9fold. my next guests own a massage spa in arizona and decided to close their business only three days after opening at the start of the month. i'm joined by seth and j.c. boyack they own citrus massage in chandler, arizona. >> thank you for having us. >> we are so interested to hear about this story seth, i'll start with you. you reopened

you actually had full appointments booked for the first two or three days, is that right, but it was your workers who revoellted what happened? >> yeah. and so we took a lot of precautions to actually reopen our doors. it took us -- we waited about two weeks until we were actually able to reopen so we delayed that we were fully booked we were booked for about three weeks out actually and after about day three, jaycee called me and said this feels very uncomfortable tensions were on edge. i wouldn't say tensions were on edge, but our therapists just felt scared. i guess that's the best way to say it, they just felt scared because we're in an environment where they might live with their grand parent, they might have some autoimmune or compromised position, so they felt nervous

just being in close proximity with clients. >> jaycee, this goes back to the mask issue, right? it was partly that you guys didn't require masks for people when they were face up on the massage table. i know we're getting into some of the details here, but i am curious how much that played into the anxiety that your therapists had. >> yeah, so we came back to work when you're face down on the massage table you didn't have to wear a mask. when you flipped over, we made it optional. if theydidn't feel comfortable or didn't want to wear a mask they didn't have to. by day three, we knew cases were rising in arizona and it just -- being in such close proximity to other people, i'm not a massage therapist, i work the front desk, and even that, i was scared i thought if i'm nervous to be at work, how can i expect my employees to go into a 10x10

room and be in such a high-touch industry it was a scary unnerving time and wasn't very comfortable. >> jacy, did you think about requiring masks? do you think that would have helped the anxiety that you as employees felt would your clients have still shown up under those conditions? >> i think so. we did require masks in every area of the spa. had we required them face up, i still think with the arizona cases rising, you're not socially distanced, you're within just a few inches of somebody so would our clients have come i think they would but we do have the best clients in the world but i do know that it's scary for the clients as well. >> sure. seth, let's talk about the financials now and what happens next so are you aiming to reopen? what happens for the rent payments and other bills that you guys have to make? did you apply for help from the ppp program? >> yeah, good questions. we did apply for ppp

we waited for the second round because we knew we were going to close down so we didn't want to kind of clog up the system for the businesses that were going to stay open we got approved. and as i started asking questions about, okay, what does this look like as far as a forgivable loan versus an actual loan, that wasn't as clear and so i opted to not take the ppp because as a small business only being open for the last year, i just couldn't have that debt on our balance sheet, if it became a loan so yes, we still have bills to pay. we're working with our landlord and he's agreed to defer our payments until we actually get opened back up but there's still a bunch of other bills just to keep the lights on. so -- yeah so bills keep mounting up. >> when do you now think you'll be able to reopen? and will you have enough therapists >> good question

ask me tomorrow and i might know more no, you know, it's a day-by-day thing. jacy and i talk about it on the daily for hours as far as what the future looks like. we feel like we would be irresponsible to open up as cases continue to rise you know, the cdc said, hey, let's see a two-week decline in cases before we start looking at opening the economy back up. we really never saw that here. so i would be looking for something like that, where we're seeing cases slow down dramatically and then just implementing kind of to your point the masks on the -- when you're face up on the table. but i still think it's a really scary, nerve-racking time for our therapists and for clients and so what that looks like going forward, it's tough to say. so that's kind of how we're approaching it and looking at it

day by day, week by week. >> best of luck to both of you it's just such a difficult place to be and we appreciate you coming on to tell us your story. >> hey, thanks for having us. >> thanks, kelly >> seth and jacy i'll be there in the winter maybe in a few years we really appreciate, owners of citrus massage. the boeing 737 max has now been grounded for 473 days but today some of the planes will be back in the air as recertification flights again. we'll have a closer look at that process and what has to happen for the max to start flying passengers again boeing shares up more than 10% today. and that rise giving a boost to the dow and the overall markets. we're up over 500 points on the dow at 509, session highs. we're back in two. 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 to "the exchange." shares of boeing are at session highs up more than 10%, just off

that level, as recertification test flights of the 737 max began just at the top of the hour since the plane was grounded in march of 2019, the stock is still down about 50% phil lebeau is here with a closer look at what we can expect phil >> kelly, we will likely not hear any kind of an update in terms of how this first recertification flight went. they're expected to land within the next ten minutes and there is a return flight back to seattle. that will happen a little later on this afternoon. so what exactly happens on a recertification flight and what are they looking at? here's one example of what people will be looking for with the max. in the cockpit, an faa test pilot will take the lead 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 on a flight test card, including exact parameters like altitude, air speed and center of gravity for the plane. it is the script of specific scenarios 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. it's all recorded with multiple cameras. but the real focus of the max certification flight will be the reworked mcas flight control software mcas was designed to trigger in certain situations, like takeoffs, when the nose of a max could lirise too much, leading a possible stall to keep that from happening, mcas automatically lowers the nose while the plane accelerates. the software has been redesigned so mcas can only be triggereded on -- triggered once, not repeatedly the faa pilot will not deviate from the flight test card so there are no midflight changes 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

as you take a look at shares of boeing, keep in mind that boeing has done dozens of its own test flights. basically they know what this plane will be asked to do during a recertification flight so there should be no surprises. if all goes as planned, this is a crucial hurdle, kelly, possible, possible ungrounding of this plane by the end of the summer and a return to service later this year. they still have a number of hurdles to clear >> it's fascinating watching that animation, phil that was great not only do i get nervous every time because you realize how delicate all of this is but to understand what they are changing with the mcast you're saying if all goes as planned, passengers could be on this plane before the end of the year >> yes once it's ungrounded, maybe it's in early september that they unground it. southwest has said it's going to take us 45 to 60 days in pilot training

maybe you're look at november or december >> we'll talk about how public feels about going back on that name they didn't change the name. thanks so much coming up, it's the overlooked threat. there's one very important industry that's being ignored and could see bankruptcy and the fed can't save that. take a look at shares of zoom info technologies the other zoom recently ipoed and the street is initiating on the stock. got six buys, eight holds, no sells. $50 was the street low ar a dshesreown 4% under 50 bucks today. we're back after this. usaa is made for what's next no matter what challenges life throws at you, we're always here to help with fast response and great service and it doesn't stop there we're also here to help look ahead

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my next guest says one very important sector is being over looked it's our health care system. he said a spade of hospital bankruptcies is on the rise but restaurants are at risk with capacity limits. it could lead to a slow economic recovery let's welcome in the chairman and ceo of stifel fj the hospital bankruptcy s a real threat what options do they face? >> well, i think that, first of all, you've got to commend the hospitals for doing all that they did to make sure that there were adequate beds to handle the covid and what that did was it had some side effects like having people not go to the hospital for anything and it's difficult today. there's no elective surgeries being done the hospitals are losing millions and millions of dollars and that's a long term problem, for sure >> we have the ppp program that

could help small businesses. the fed starting to roll out the main street lending program that's supposed to be aimed at larger companies would hospitals be eligible for that for restaurant, it could find of fall under either one. the main street program is just getting off the ground >> yeah. look, the main street program is loans and loans are always welcome in any business if you can get them the hospitals have a unique set of circumstances here. we, it would be almost ironic if the very policies that we employed to deal with this covid resulted in the hospitals running out of money so, if there's any institutions that have a need and probably should get aid it's the hospitals. i can't believer that's a debatable question to be honest with you >> do you think it is our a matter of recognition that as soon as congress is aware of the hold these hospitals are facing that we're talking about

billions of basically grants, just direct relief >> i would hope so i would -- if this issue needs to be elevated in the collective conscious of politics and or business i'd be surprised. if it is, i'm say ourhospitals are in trouble we need to deal with that because we need to be able to deal with this if we have second wave or whatever we need hospital capacity. let's not have our hospitals run out of money >> it's a problem for those big universities systems as well that get a lot of funding from hospitals facing a huge hole there. let me ask you as we take audiotape tabout the state of economy, are there places that you more concerned we have been hearing about general snap back in consumer spending here but what about the harder hit parts of the country. what can you tell us about what's going on? >> i think you hit it. it's geographic.

it's absolutely depends on where you are. here in the midwest the economy feels like it's coming back faster here. we have offices all over the place. i can tell you where it feels like things are rebounding and areas where things are going backwards. >> you starting to price in a biden victory in the fall? >> that's a great question the bigger question is you would have one government meaning the senate and the president this market would not like that for politics reasons but for tax policy reasons

that would require the administration and executive and the senate change hands. the market has not priced that in i'll tell you that >> all right we'll talk about more about it in months ahead. that's for sure. >> see you again soon. thanks for joining us. that does it for the exchange. ahead on power lunch, there's one stock up 300% since the march lows benefitting from the stay at home trend we'll tell you who it is and speak with the ceo after this.

good afternoon, every one. welcome back i'm tyler mathison and this is power lunch. rally to kick off the week the dow at session