Transcripts For CNBC Squawk Box 20240712

That you were giving bad dad jokes in honor of fathers day i hope that you had a very good fathers day. I hope that mat did as well all the invites. We were waiting we had the drinks ready, the smores ready, the whole operation. Did i mess up your address or something . There was nothing at that location it was like. Its hard to find on google the google maps they send you a little bit of an awkward direction. Its the wrong address. Like the phone numbers that i used to try to get. Exactly must have written the number down wrong lets start with markets this morning. The major averages are coming off their fourth week of gains the last five weeks. This is something that we have been watching closely. If you have been watching the markets the dow is more than 10 from the all time high the nasdaq as joe mentioned was closed up for six sessions in a row on friday and the nasdaq at this point is less than 2 from its all time highs we are been watching these very closely. Theyre the only index that is more than 20 away from its all time high. I dont know if you believe in the dow transports or if this is just because the unique nature of this pandemic and what it has done to airlines and other transportation the dow futures turned down their demo 8. 5 point and the nasdaq is indicated up this morning treasury yields look like they have come in a little bit. I was watching this morning and the ten year were sitting at 0. 695 a couple of other charts to watch this morning Wti Crude Oil prices closed at the highest level since march 6th this morning theyre indicated down and then you also have gold prices that closed at their highest settlement in a month. Of course people have been wondering about the fed spending all of this. Theyre up another half a percentage point andrew okay. I want to give everybody an update on the pandemic the bho reporting a record whon day increase in the number of positive cases thats 183,000 on sunday alone and the cases jump by more than 30,000 on friday and saturday. Thats the highest daily total since may 1st. Now several states hit record case numbers on saturday florida, south carolina, missouri, nevada, montana, utah and arizona. Now meanwhile those numbers are going up and theres an update on the reopening taking place in north america. New york city entering phase two today and bars and restaurants can offer Outdoor Dining and stores can open for in person retail hair salons and barbershops can reopen and no sail salons and parlors will reopen but team sports are still prohibited. In texas suspendingly kwor licenses for violating covid19 protocols as part of an undercover investigation by the states Liquor Authority it was a second infraction and earns a 60 day suspension and prospects may be dimming for College Football season. On friday it was reported that 23 clemson Football Players tested positive for the virus. Over the weekend Sports Illustrated said a large number have been placed in quarantine to try to slow the spread of the virus. Kansas city suspending all football workouts after 14 athletes from various sports tested positive. There were positive tests at the university of houston, alabama, auburn, south florida and West Virginia theres continued questions about baseball so i dont know where we are guys on all of this i felt like it was one step forward, two steps back. One step forward i dont know. College in general is still up in the air. No decisions are being made. I dont know if you saw harvard put out a note i think late on friday saying that theyre going to its going to be online classes no matter what next year in its entirely trying to bring some percentage of the students to campus so you would effectively live on campus and live in a dorm room but all of your you wouldnt go to a classroom. All of your classes would be done over zoom i dont know they talked about three possible scenarios. One being a very low density situation and looks like the school now which is very low density. 30 and 40 of the students coming back. That was probably the most unlikely and then which students get to come back is it a lottery system its very interesting to watch all of this. And well have this in the meantime we should have thought about this and the immune system is like one big organ so you try youre dependent on your immune system to react to the vaccine to give you immunity if you have a very weak immune system by definition even though you get the vaccine youre depending on whatever, youre depending on your own internal system to develop the immunity and its unclear whether the people most at risk can actually respond to that. We kind of knew that though. Billgates told us that. Scott told us that in the past were not sure if its going to work for older people. And young people seem to be immune already kind of. Right. Not all of them a strong immune system. And the other issue we watch these states that are getting the higher number of cases all the time they are states that are already open we can say that they have come down if we open up again well be back in the same position. That remains to be seen too. Deaths arent what they were i guess. Probably going to present the more positive case well see what he says what is that about 8 30. The governor of florida made a very interesting point especially in terms of the hot spot that youre seeing there, a lot of the people are younger. So the death rate has come down. Younger people are getting it so its not as the deathly if you will as when older people. The question is if it effects their parents or grandparents or anybody else that might be vulnerable were back where we started. We havent gotten rid of the virus. We have been living with it for awhile i looked at my letter that lets me in if i get stopped and it was march 16th. Allowed to be going into work. Im essential i mean, that just shows you how random that is, but no, i feel essential, i do what is that three months just over three months. Yeah. The 22nd. It feels like a lifetime but then again its going fast so i dont know. Very nice. And then lets find a Golf Tournament on. Rain like were finally playing again but its raining but they finally played. Well, when it rains it pours. Other events over the weekend. President Trumps Campaign rally on saturday hit a few snags. News was released ahead of the event that six members of the advanced team tested positive for covid 19 6,200 people were admitted into the arena. Events were cancelled at the last minute because a few dozen people were gathered there a Million People requested tickets. Youre going to find more people and more cases. I said to my people slow the testing down please. That comment sparked backlash he said it was tongue and cheek. Chad wolf said the president made the comment in frustration over Media Coverage that focuses on increased cases the president called testing overrated last week. Do you remember the friday night . Its like who is this guy . Hes out and then later he says no, hes not out he says hes staying what thats what happened by saturday he was out and whether there was some confusion because he read about being replaced in the news from the u. S. Attorney general barr and on friday night it was apparently news and he had an idea and resigned on saturday after barr told him that President Trump fired him. He told reporters on saturday that he wasnt involved in that. And because the office is currently investigating, his personal lawyer Rudy Guiliani and obtain a conviction for the president s personal attorney michael cohen. The move to nominate jay clayton to the top position. He was on a different show and my only thought was he wont get to it. Is it possible to go you can. Should i . Id have to wear a mask . You pull off one side. That you could have i was going to tell you joe. If you hadnt of blown me off friday night you could have since you apparently how do you do it . I cut it myself but i was just going to mention on jay clayt clayton, you mind this interesting, the big issue that people are now focused on is who takes over the sec but the crypto currency world is fast nated by this what is that going to look like . Theres also calls as you know for more regulations over th robin hoods of the world and some of the other online trading platforms and even wall street and his peers that had anticipated that he was actually going to end his term atte the d of this year they were made so apolitical throughout this and i thought that it kept his head down and this going to fully thrust him into the spotlights and theres questions about politics. He wants this job but hes never been a prosecutor. In terms of the crypto one of the stories that i read are that Central Banks are starting to realize they might need some type of crypto would they have to design their own . I dont know whether that would be good or bad its going to be hard to get that first entrance into Something Like that now during the recent pandemic, its supposed to be in there and much higher im going to tell about better than some Asset Classes and its come back quite a bit but its totally a risk on, risk off asset if you watch it. Every time the stock market goes down and every time it goes up, it goes up so its still early. Its my digital goal, youre right. Especially at a time when nobody is using cash. Right. You can see the reports that the Federal Reserve doesnt have any coins because nobody is using them and people have figured out how to use all of this digital money anyway possible or Digital Transactions and thats a huge change that i doubt is going to significantly come back because its easier. Once people figure out how to do these things the the same thing with older people learning how to do online banking. Once you teach them how to do it, its easier. Right i didnt realize that he was not on board they want to get this thing moving. Well see by the way, theres still real questions about whether his nomination will pass as you know chuck schumer, senator schumer came out against it almost immediately calling for him to step down or with draw his name and, in fact, Lindsey Graham is effectively putting it to the two new york senators so it will be up to them effectively to allow this to go through or not. Its going to be an interesting one to watch. All right, folks, when we come back, china banning imports from tyson poultry plant because of the covid outbreak. We have the details next dont miss larry kudlow at 8 30 a. M. Eastern time squawk box will be right back. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to Xfinity Mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Welcome back chinas authorities suspended poultry imports from tyson they confirmed a cluster of covid cases. China stepped up oversite after an outbreak was linked to a wholesale food market. Officials initially blamed the output on imported salmon. And its banned imports from some factories with confirmed outbreaks including a pork plant in germany separately yesterday Chinese State media said a pepsico factory was forced to close after 8 workers tested positive. In his latest oped the former fda commissioner discusses the british strategy of fighting the pandemic and why the United States should follow its example. Joining us right now is dr. Scott gotlib and he serves on the boards of alumina and pfizer thank you for being here its good to see you. Thanks. Lets talk about your oped first up what are the british doing differently than we are. The recovery trial that was a trial that unearthed the finding with the steer yoed that was demonstrated to cut the risk of death by a third with patients s intubated. Its still large and a rand randomized trial but it was a practical trial in so far as it wasnt collecting a lot of different variables about the patients so it made it easy to run this kind of a trial in a crisis situation doctors that were busy working at Critical Care units we reached for more elaborate Clinical Trials and thats made harder to run and made it harder for us to get results. We actually affirmatively decided not to participate in the recovery trial and regulators and Public Health authorities need to rethink these trials and reach for these kinds of practical trials that are going to be easier to run in the settings so we start getting answers about what works and what doesnt well be more dependent upon therapeutic innovation given the fact that well continue to have a will the of infection. Today is the reopening of phase two. People can get their hair cut in salons and have Outdoor Dining and drink service. A lot of other things out there. Sometimes people in the northeast have seen they have been thumping their chest about how much better they are doing than other places. We have seen a decline in the number of cases and others have opened up and have seen more cases coming on. Waiting for us to happen too and its inevitable and it puts us right back where we were first of all, cases are way down in the northeast and theyre way down and masking people being mindful of their social interaction. And new jersey and connecticut around 10 and the transmission rate is going to be less because of that because now you have some people that have some level of immunity i wouldnt expect to see the big increases that theyre seeing in the southeast and the south here when we open florida, texas, georgia, alabama, south carolina, arkansas, arizona, all opened against the backdrop of a lot of spread their cases never really went down and then they opened up so it was destined to have more infection as they opened do you think thats why when you look at what were hearing from some of the schools, some of the universities that opened up for their football practices. It was clemson, lsu, kansas state, the university of texas, the university of houston, alabama, south florida, and all seeing cases and spikes in the number of kids on those teams that have seen coronavirus that tested positive. Do you think that its something that youre going to inevitably see across the country and in high schools too and i think that the professional leagues could do a lot and test them. And its going to be much more difficult for colleges to do that and they dont have the resources to do it but also to control it off the field its going to be more difficult to restart professional football they can restart professional football and they have end less resources to try to work this problem and try to put measures in place and reduce the risk off the field as well. I dont think that its a consequence that youre seeing the outbreaks in states where you already have outbreaks thats probably quite significant. This week is going to be a pivotal week for us to get a picture of where things are headed in florida, arizona and texas. Whether or not theyre tipping over into exponential growth or not. The problem is that everything looks okay until all of a sudden it doesnt and in the cases of building very quickly in those states, i think theyll continue to stay down because were treating this disease better and its among the older cohort as older people do a much better job of protecting hethemselves. What would be the number of statistics that we look at to decide whether this has gone. Youre seeing cases build by 500 a day. That is going to look like exponential growth so its been coming down they are having major outbreaks underway and theres no question about it and the problem is they dont know whether to establish the bars its the bars because a lot of young people are getting the illness but i dont think that they traced it back to the locations effectively because they dont have the tracking and placing in place that other states including new york, new jersey, and connecticut have as they reopen. Hey, doctor, real quick given that it appears that the morbidity race has come down and thats such a great sign, how should we think about these numbers relative to hospitalizati hospitalization. Is that the key to look at relative to the total number also its become politicized so were doing a lot more testing im trying to think through where we should be looking. Well, were doing more testing but the Positivity Rate is going up. So its not just a function of testing. I think that we are looking at hospitalizations because the measure of the Political Class is looking at is resource utilization by the Health Care System and asking themselves do we have enough capacity to sustain these outbreaks. The problem with that is that the hospitalizations are number one our leading indicator and theyre not going up 40 of hospitalizations in arizona are now Covid Patients but the other challenge is that if we get a lot of infection, even if its among a 20 to 40yearold cohort thats certainly less likely to accompany the infection. If we have that much more infection going on in the background its going to seep into the communities what are you racing against . All the 20 to 40yearolds getting infected eventually its going to get into the older populations as the density of infection increases which is what is happening right now. It does seem to be high in these places right now among the younger population check up on the big banks. An astounding record details are next as we head to break take a look at the next premarket gainers in the s p 500. Usaa was made for right now. And right now, is a time for action. So, for a second time were giving members a credit on their auto insurance. Because its the right thing to do. Were also giving Payment Relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. Right now is the time to take care of what matters most. Like weve done together, so many times before. Discover all the ways were helping members at usaa. Com coronavirus yeah yyeah yeah hey, hey we hope you find these Digital Solutions helpful to bank from almost anywhere. Deposit a check with your phone or tablet. Check balances, pay bills, and more. Send money to people you know and trust with zelle. Explore all you can do with our Digital Tools from almost anywhere. Pnc bank. Welcome back to squawk box some new data that may be a good data point set during the pandemic banks are now swimming in cash new fdic data in record 2 trillion surge in cash since the coronavirus in the u. S. In january. Deposits crew by 865 billion more than the previous record for an entire year now theres several reasons for what is going on here and we should try to explain including hundreds of billions of dollars including government stimulus for Small Businesses and individuals that made their way into some of these accounts. Its also the result of household decision makers. Now the personal savings rate in april hit the record 33 you know theres been lots of talk about a lot of money sitting on the sidelines some of that may be this one sitting on the sidelines when it comes to the premarkets. A lot more on squawk coming up after this u. S. Equity futures take a look at where we are on this monday morning. Were now about three hours before the opening bell. Dow will be open off about 16 points the s p 500 off and nasdaq open up about 10 points higher. Strategy after the break and then later a live report coming from china on what businesses look like after the pandemic lock down. Ua rur iju aoment. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will you can rely on the people and the network of at t. To help keep your business connected. Futures at this hour are basically flat lining over the nasdaq its up again. The dow has been down on a relative basis talk about the stock market, the bull market continues to worry, the dow and s p are up more than 35 its just is that really since march 23rd id like to set that number. I dont know if thats exactly right. I just had a quick calculation and i will go with that today. Nasdaq is up more than 45 and how to navigate chief Global Market strategist and your mood has not improved and so stocks are if you didnt like stocks a month or two ago and you were on you must like them even less now because theyre a lot more extended than the last time that you were on and you still think risk reward doesnt favor stocks no, joe, actually, im i have come around in my opinion and the reason is the fed. The fed a year ago has the smallest Balance Sheet in the major Central Banks and now theyre the biggest in 7. 1 trillion and theyre basically setting a floor and theyre buying etfs and theyre going to start buying Corporate Bonds and high yield bonds and theyre setting a floor underneath the bond markets and equity markets and im optimistic about where equities are going. Theyre going higher from here but even as you recall, a month ago or so when we talked about this a lot of people said they might come up 7 but i certainly wasnt in the camp where they were going to come off a lot and now i have become much more positive because you cant fight the fed. They make the money and you have to pay the aengs tattention to r doing and theyre setting the floor underneath the market. I guess if you dont feel a lot, you must im not talking about you, im talking about anybody that says well look at the fed. The market is where it is because of the fed you must be counting on the underlying economy at some point catching up because of all of the cheap money. Youd think fundamentals need to get at least a little bit more in line with where the Financial Markets are because theres such a disconnect right now or can it just go on for forever and if it does, that seems like the day of reckoning gets bigger and bigger for what we have to face in the future from all the easy money arno around the world. Well, the day of reckoning, the u. S. Treasuries borrowing. The fed however to their credit and i mean to their credit has stepped up and we have incredibly low Interest Rates because of what the fed is doing so the cost of the u. S. Government borrowing money is right off of zero at this point. I think that the fed is going to continue doing what theyre doing. I think that they may grow their Balance Sheet even more so i dont see a day of reckoning any time soon at this point. I think that if the fed keeps going the way that theyre going its going to keep inching equities up for quite sometime the disconnect in the economy, i mean, were Getting Better its not as bad as a lot of people thought it was going to be its not as bad as many people thought. You know how big of an impact the fed buying etf and Corporate Bonds and high yield bonds and their normal treasuries and Agency Securities are having on this market. As a matter of fact, its really created here what i call a borrowers paradise mortgages, corporations, youre seeing a huge influx in corporate debt its virtually no place to get in a yield i keep pointing to some funds that pay monthly so heres money every month or you can get some double dimth returns if you know what youre doing and its very difficult to find any yield in here whether its for a bank or finance individual, for a senior, for retiree, pension plan and thats a huge problem if my opinion. Like all things if you take them to a ridiculous just as a to prove a point, i mean, i dont see why dont we just buy the s p still and get the market or buy the dow until we get it up to 50,000 and well all be rich. It seems like that doesnt work because youre able to do these things by printing money, that just doesnt seem like a very Sustainable Way to run an economy. Well, joe this pandemic has causedand im certainly not saying that its going to be by the 50,000. Why not the fed have them just forget etfs and Corporate Bonds. Lets just go in all the way its an absurd argument im making but, you know, when youre just printing money and youre supporting all of these different Financial Assets purely from printing more and more money it doesnt seem like thats going to work for long before something comes home to roost. It depends on where they put the money. They have identified some places they have also talked about controlling the yield curve, negative Interest Rates. And remember other things they havent one. And were going to have starts depending upon the virus and depending upon what the fed does and depending upon what the actual economy is going to do so were at historically low yields and its going to be a big help for their Balance Sheet. All right i was uncomfortable. Thank you. Okay always being on with you. You know and with when the days start getting shorter, isnt it like a thursday its too close to monday stop reminding me. Stop reminding me that the days are getting shorter from here you were brisellitling. You were human. Do you know what, if you got it yeah, he is human anyway, were glad to have him with us. Several decades more when we come back, much more about what is moving on the markets ahead of the start of the trading week lets take a look at the biggest winners in the dow this morning. By the way, later, dont miss our squawk news maker of the morning. Larry kudlow will join us. [narrator] the shark vacmop. 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Coming up, the latest news from china where a second wave of sources top 200 new cases outperforming the s p 500 so far this year. Were going to talk about all of it right after the break take a look at shares in American Airlines. Companies seeking more than 3 billion in new financing well be right back after this welcome pack to squawk box. Beijing officials reporting 9 new cases of coronavirus in the chinese capital. Thats down 22 a day as the outbreak appears to be slowing well get back to eunice yoon with more on what life has been like after the lockdowns eunice reporter thanks so much, andrew the life has been a little bit more difficult here because the measures that beijing has put in place have been more extreme. Even so, businesses are still trying to operate as per normal. 25 thourkts vendors are taking part in chinas largest trade show and most of them are doing what people are doing behind me, which is Live Streaming from a factory showroom there have been a lot of questions as to how Business Practices might change and china has been experimenting with massive expo as one business person told me, it hasnt been easy. It may not look like it, but businessman steven hang is attending chinas largest trade show. Its all new to us. Every year for 17 years comes beijing based business taking the Southern City of guang jo. At the expo china based suppliers would make hundreds of thousands of over seas buyers. Because of the pandemic, china decided to put the entire show online so instead of manning a physical booth, the staff greets customers in virtual halls theyve created a make shift studio to show off products on the fairs 24 hour Live Streaming platform. Setting up this place was a challenge because the wifi, the internet has to be good to broadcast. One draw back, potential buyers cant do a popin. At the fair sometimes you have people who are looking for things and they stumble upon you. In the live upon version you cant stumble upon them. You have to reach out to customers. Even then customers cant look and feel. They cant hold the product in their hand so we have to explain every single detail. He misses the oldfashioned meeting. This Online Platform is a good experience for us and maybe future trade shows are going to be online too. Reporter companies here are using all sorts of technology in order to reach out and retain their customers, but i think, andrew, its pretty clear that there are some things that you cant do in business without a facetoface meeting, such as trying to gauge the quality of a product. Eunice, thank you for that report were going to continue this conversation right now i want to bring in bill bipartisan shop. He has the newsletter. Cofounder of cbs market watch good morning to you, bill. The question id ask to you, weve effectively said were not going to close down no matter what china has been much quicker to close out at least parts of its economy. Do you see them moving more in our direction in the future given what may happen as a result of those lockdowns . Do you see them moving in the continued direction that theyve been going good morning. Thanks for having me i think whats interesting is what weve seen over the last week in beijing where its effectively been 250 confirmed cases or so they have in a much more targeted way shut down parts of beijing but theyve managed to keep most of it open and going. So i think the chinese certainly are saying theyre acting like theyre very confident that they have the Testing Capacity i think theyve said today theyre testing 230,000 people a day in beijing as well as the Contact Tracing so theyre very quickly able to isolaten one who has come into contact with people who has tested positive. They are maintaining their essentialized quarantine contacts so i think that they are theyve been focused on restoring the restarting the economy as well as controlling the epidemic i think what were seeing is the fruits of that where were taking a much more targeted approach to doing that to avoid the blanket shutdown or the blanket were just going to let it run rampant. Right what do you make of this report overnight, china suspending u. S. Poultry imports . I dont know if you saw this is going to hit tyson foods and others because of some of the words of covid here. How do you think this changes not just the economic picture but the relationship of the United States throughout this . So the chinese have reiterated that they want to keep the trade deal intact i think theyre smart to do that because trump has made it very clear thats his most important objective in the relationship right now. The chinese see that as the really the last kind of thread holding the relationship together right now i think on the specific issues around the tyson, i thought it was one or two plants and not all poultry and porks. Also, one of the things theyve been trying to figure out or blamed originally was frozen seafood, salmon. Now theyre looking at frozen meat these cases are all being imported from outside. Its not clear the science backs that up, but i dont think the tyson issue is going to get in the way of the chinese governments efforts to at least make it look like theyre fulfilling the purchase goals for the phase one deal, at least through the upcoming u. S. Election okay. Bill, its a longer conversation wed love to have you back to continue it. Weve got to jump for now. I want to thank you. We will talk to you. Thanks for having me. Joe coming up, florida senator rick scott is going to join us next lkg state and joining you and tainabout the reopening. Whats ahead for the senate coming right back. Can i find an Investment Firm with a truly longterm view thats 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. A number of positive covid19 cases, it is preparing for a possible spread. Florida and the surge in his state and the governments response watching the rise in viruses. Mohamed el erian plus former j. Crew chairman, drexeler is our special guest. The second hour of squawk box begins right now. Good morning back here on cnbc. Im Andrew Ross Sorkin along with becky quick and joe kernen. Its down five points the nasdaq which has been holding up, looks like it would open up a point higher sticking in there, joe. Sticking in there. Yeah. Tell us more spruced up this morning. Its a monday work ethic back down to work the president is relaunching the live campaigns this one didnt work out as well they didnt get the attendance they were looking for. The president took to the stage in which he said this. Listen you know, testing is a double edged sword. Weve tested now 25 Million People its probably 20 Million People more than anybody else heres the bad part, when you test when you do testing to that extent, youre going to find more people youre going to find more cases. So i said to my people, slow the testing down please. Reporter so the president saying there that he told his people to slow the testing down. Officials later said the president was being tongue in cheek. He didnt issue an order to slow testing down for covid white house officials saying the president was joking about testing over the weekend the acting head or the current head of the Southern District of new york and the department of justice, jeffrey berman, was stepping down. He wasnt stepping down, he wasnt going to resign, he was going to stay at his job he showed up for work on saturday morning that prompted a real set two which the president had to step in and fire geoff berman the original plan was to move in sec chairman jay clayton into that role. Thats now no longer going to happen audrey straws is going to be in position for some months to come some real chaos and confusion over there remember, the Southern District of new york has dealt with a lot of cases that are related to the president and his associates rudy. Gil giuliani and straws will have a lot on her plate here some politically charged movements around that leadership position exactly where all of this portends the jay clayton nomination has effectively been blocked blocked forever . I thought we were seeing where senators are coming out saying he should withdraw his name and the nomination is still on the table. Its still a possible thing for the president to do. But, remember, the way this initially was going to work according to barr, his initial announcement, berman would step down and that would allow the president to put in his own person berman didnt go along with that plan he said the first he heard of it was the police berman has to nominate his deputy, audrey straws. The president can take some steps to put in his own person over the course of time here but this does give audrey straws some time to be in charge of that office. Berman suggested in his statement that theyre working on important cases and the continuity of those is important to him he clearly did what he could on saturday to stay in place long enough to give miss straws a leg up in getting that job and keeping the president from putting in the person that he wanted to put into that job, jay clayton. Convoluted series of events. Its not clear whats going to happen next. Its not clear what the president s next move is if hes done with this or if hes going to continue to press here. Eamon, just to clarify. I apologize. My understanding of this is that jay clayton is still nominated and would have always taken some time to be approved because he would have to be approved so youd have to if berman was going to step down, there would have to be someone acting in bermans place during this period. Now there are questions obviously as to whether he can get that approval given some of the comments by senators and others that its not now just the acting audreys now not just in that acting role. Shes in that acting role but that jay clayton has not been taken off the table. Theyre going to try to push ahead with it. The question is does the president back down now or does the president double down . This is a double down presidency what barr was trying to do was get in his own person from new jersey into that slot. So he had somebody that he was more familiar with, liked better, what have you. Now hes got audrey straws to deal with at least for the time being and well see where this jay clayton thing goes it seems like the president s instinct is always to double down we dont know whether hes going to continue. We dont know what barr is thinking we dont know what the president is thinking today. They can push forward if they want to and well see what happens. All right thanks, eamon. Lets get to rick scott. Theres been a surge in coronavirus cases in the u. S more than 30,000 new cases reported friday and saturday experts warning that florida now showing signs as the next epicenter of the coronavirus pandemic as states in the south, midwest and west see infections rising joining us now, senator rick scott. Hes also the former governor of florida. Senator, what are you hearing from people on the ground in your home state, governor desantis, et cetera . There must be concern but is it are there positive signs nationally about this . I know deaths are down. Sure. First off, i mean, we clearly havent beat it so i think everybody is concerned when they read about the cases, the number of cases up. Like you said, the deaths are not growing like that so thats a positive but were not we havent beat it we have to keep focusing wear your mask social distance. I know every employer im talking to is trying to figure out how to keep their employees safe and their customers safe so, you know, weve got a lot of work to do so i hope we can stop this and i hope it doesnt come back in places that have seen a downturn. In europe it seems like things have improved a little bit. You can see how much this matters to our economy, sentiment. Stock market pails concerns are paling in comparison to whats going on in terms of people getting the disease, but apple all apple had to say on friday was, look, weve got to reclose stores in some of these areas and what was a gained in the market turned into a loss. So are we going to have reopening worries and reclosures around the country at this point do you think as we go through these phases i think we have to keep reopening our economy but we have to do it safely we all want to get the vaccine done as quickly as possible. The federal government has clearly funded it. We have a lot of Great Companies working on it. The fda did a great job giving the doctors an idea and were not out of the woods we have to, every one of us, everybody has to take it seriously, wear your mask, social distance. Dont go to places you dont have to. Be careful its pretty basic. Its still deadly. We all have to be careful. Just wondering whether in terms of mortality in floor darks do you expect deaths to catch up with the cases . Because then people will focus on that at this point. Go ahead well, you sure hope not. Icu is the Health Care System going to be able to handle this in florida . Well, so far they have. I mean, thats what you hope for. The big thing is everybody takes this seriously when you see the uptick in cases. Some of it may be tied to testing but not all tied to testing. We have to double down and say, are we being careful enough . Weve got to beat this weve got to beat this for our friends, ourselves, our family, our business community, the economy. There is a lot of work to do i think its important that everybody educates people about whats going on so you can make good, informed decisions. Andrew . Senator, wanted to ask you about a comment that Governor Cuomo in new york made on friday the implication was around the state of florida florida, of course, you remember had a quarantine for new yorkers going to florida and it sounds like hes mulling the idea for a similar 14day quarantine for travelers coming from florida going to new york . I think every governor has to keep theyre responsible, you know, for the people in their state. When i was governor of florida i was responsible for 22 mm people how do i keep people safe . Governor cuomo has to figure out how do you keep people safe . How do you open your economy its no different in new york or florida, how do you weep everybody safe last time you were still in the camp of we havent used everything weve got already i think there are republican senators that think in july theyre going to do something. You would be opposed to that well, heres what no, im not. Heres what i think we ought to do one, lets do everything we can to hold china accountable. Number two, we have to get liability for First Responders number three, take care of people who lost their jobs, number four, lets help Small Businesses reopen. I sent a letter with senator ron johnson and ted cruz to all the governors to understand how theyve allocated the dollars weve sent them. Weve sent them half a trillion dollars and given them access to another half a trillion dollars. We said were going to cover all of your costs for coronavirus. Extra money for medicaid extra money for schools. Lets get the facts so we make good, informed decisions before we spend more money. We have allocated almost 3 trillion that means in the future somebodys taxes have to go up to pay for that. I want to make sure were getting a return on the dollars we spend and take care of the people that need to be taken care of. Andrew . Senator, i wanted to ask you about opening schools because its so critical to the economy to get parents, frankly, back at work as well and then there are questions about teachers and the like, especially teachers and others that may be at risk and what kind of insurance coverage, teachers that are high risk, should they go on unemployment or should there be special payments made to those employees who cant work well, first off, you know, if you you know, if theres no job or you cant work, weve got to do everything we can to help them its a tough choice. I was talking to my daughter who has five little boys and trying to figure out what their plan is to go back to school this is a tough choice i know the goal is to ramp up to get to 30 plus maybe 40 million tests by august so we can make good decisions these schools, its a tough job to figure out, are they going to do how far apart do they have to be how do you take care of everybody that works there there are tough choices for schools and our parents. August is going to be a tough choice month for a lot of people i guess at the convention, i dont know what thats going to look like. A lot of social distancing and a lot of masks, the rnc. Look, id like everything to be in florida. You have to do this safely people need to wear masks. They need to social distance you have to do this in a manner no one gets sick lets all lets try to get back to normal as fast as possible but lets do it in a safe manner. Have you seen any increase in those states the polls have been off 47 points against in my case and in trumps race in 2016, the same thing the polls im seeing is neck in neck theres a lot more interest in trump than there is biden. The but heres the end. The end is going to be about who cares about Law Enforcement . Who cares about keeping people safe who cares about Holding China accountable . Who cares about capitalism in that case i think trump is going to win biden doesnt appear, like hillary back in2016, not a lot of interest. Theres still a lot of interest in trump okay. Senator, thanks. And all right. Best of luck to florida in trying to deal with this we appreciate it hope everybody is safe. Thank you, senator in the meantime, shares of Virgin Galactic are surging this morning. This comes after news just moments ago that was out that the company has signed a deal with nasa. Under that deal Virgin Galactic is going to be developing a recruitment and Training Program for private astronauts seeking to dock the International Space station. Up 10. 5 on that news. Still to come this morning, at least 29 million americans are collecting unemployment checks and millions of workers are bracing themselves for future layoffs forcing some to tap into their 401ks well take a look at the pros and cons of that strategy next in the meantime before we head to a break, a quick look at whats happening in the markets. Tau was highever now theyre down by 2. Strategists are going overweight in terms of the u. S. Equity outlook. Thats from a neutral position they were over weight in 2018 and 2019 they took some profits at the end of last year but now they are going over weight once again. Well talk about that later isth morning. Squawk box will be right back. Thats why were expanding your range of choices. 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If we all participate in the 2020 census, we can ensure fair funding for our schools, libraries, hospitals, and other public services. The census is safe, its confidential, and our community is counting on us to do our part. We know who we are and how vibrant our community is. Lets make sure our nation knows it too. For more information, visit getcounted. Com, and to participate, go to census. Gov. Welcome back to squawk box. Millions of meshamericans are of work and some are tapping their Retirement Benefits to fill the gap. Sharon epperson joins us now with more on that. Good morning to you, sharon. Reporter good morning, andrew even more americans can now cash out of their Retirement Savings accoun accounts the irs listed new guidelines on who can take a 100,000 coronavirus distribution from their ira or 401k. Initially it was people who had the disease, spouse, dependent who had it workers laid off, furloughed or had hours reduced, those unable to work due to a lack of child care and entrepreneurs who had to close their small business. Now under the new guidelines people who had the start dateo a new job delayed or who had a job offer rescinded due to covid19 can also take a withdrawal and another important clarification allows a spouse of an individual whos facing adverse financial consequences to be eligible to take a withdrawal of up to 100,000 under the c. A. R. E. S. Act they can take a 6 figure sum without incurring a 10 withdrawal penalty if theyre under 59 1 2. Fidelity, the nations largest 401k provider found more than 540,000 participants, about 2 took their money out of that plan in april and may under the c. A. R. E. S. Act provision the average distribution was 13,000. Now for some people struggling, this may be the only way for them to make up for lost income. Andrew, back to you. Sharon, before you go you know, even though its a last resort, is there really any time it makes sense. Others saying theres a caveat if you have no Emergency Savings and this is all you have, you may have to tap into this. If you have high interest Credit Card Debt, again, this is taking an interest free withdrawal and youre not going to have to pay the high interest that you would on Credit Card Debt but you should be calling your creditor and seeing if you can work something out there because some have been more lenient about giving you a bit of a breather to pay back that money another issue is housing if you havent worked something out there, then you may have to take this. But before you go again though, is it better to take this withdrawal from the 401k plan than trying to take a loan . Can you get a loan collateralized against a 401k plan. You can take a loan of up to 100,000 under the c. A. R. E. S. Provision if your employer allows that. You have to count on job security usually you have five years to pay this back, but if you leave your job, even if its not under your own volition, you have to pay that money back a lot more quickly. Thats something to consider in this uncertain environment many are opting for the withdrawal instead of taking a loan because they dont know what the job situation is going to be. Sharon, appreciate it very, very much. My pleasure. As everybody knows, cnbcs partners with acorn, invest in you ready, set, grow joe. Andrew, coming up. American airlines plans to secure new financing as they grapple with travel restrictions that story is straight ahead as we head to break, heres a look at the major careeriers an how theyre trading. Squawk box will be right back. Can i find an Investment Firm with a truly longterm view thats 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. Still to come on squawk box this morning, American Airlines seeking billions in new financing. We have that story next. Plus, Mohamed El Erian on the markets and what investors should be watching right now squawk box will be right back. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. American airlines plans to raise billions of dollars to get through the pandemic and adding liquidity. Investors will look at this and say we knew they were going to take on more debt heres the 3. 5 billion breakdown in terms of the capital being raised 1. 5 billion in secured notes those are backed by slots, gates, routes. 750 million in convertible notes. 750 million in a common Stock Offering and you have a 500 million term loan. As you take a look at shares of american, keep in mind it is also in the midst of discussions with the Treasury Department for a 4. 75 billion loan exactly what the clalt will be remains to be determined thats expected to be finalized by the end of the month. This brings up the question, where is americans liquidity and how much do they have . How long will it last them the expectation at the end of june is 11 billion. The daily cash burn has come down substantially still 40 million a day. Total debt, 34 billion. If that sounds like a lot, guys, were going to see a number of airlines increasing their debt levels as you take a look at where these stocks are trading premarket, theyre all down, what, anywhere between 3 and 8 , we are in a mode right now or area where the airlines are trying to increase their liquidity so they have enough to last them 18 to 24 months. Thats what theyre going for. They do not have any expectation that theyre going to see business coming back certainly within the levels of the next six months and do they have enough to get them through the next 18 to 24 months. All right becky one quick question. Go ahead, beck. Thanks, joe phil, what kind of strings come with a treasury loan depends that has to be finalized that has not been finalized yet. Thats what theyre trying to figure out figure out, discuss, finalize is, a, whats going to be the collateral its likely that america would like it to be some type of backing from the frequent Flyer Program similar to what we saw with the United Airlines deal but in perhaps a slightly different fashion and then what is the get for the government in terms of backing that 4. 75 billion loan once that is finalized. Okay. Phil, thank you. Good to see you. You, bet. You too. Right now were going to move onto the broader markets as well as the still elevated role of retail traders. Were joined by allianz chief economic advisers mohamed el eri erian, were seeing a big bounce back the transports are still down by 20 from their highs, but if youre looking at the nasdaq, only down by 2 . S p is down by less than 10 how does that make you feel about where things stand and whether or not you should be buying in right now . So the relative outperformance of the nasdaq, the under performance of the transports, that all makes sense. Thats consistent with the living with covid phase were in and its consistent with what comes thereafter the big question is the level and where you come out on the level really depends on who you think the tiebreaker is. Becky, if you see what happened this morning or thursday or friday, were in a stalemate we had a stalemate between policy support and weaker fundamentals retail flows to come back to your question have played a Critical Role as a tiebreaker for the last few weeks and theres now a question as to whether they can continue carrying that burden where you end up on this market ultimately depends whether you think theres one more bout of Retail Investing and whether you think policies would have one more bout of support when you say Retail Investing, i know weve all been watching as people have kind of gotten more optimistic about things, felt better about things and put some of that money sitting on the sidelines to work retail investors, what will determine whether or not theres another wave of retail money that comes into this especially as you consider how it has been on the sidelines at this point. First, i think its great money has been engaging not just for the enteg grit at this of the market itself. We want to see greater retail participation, but as you point out, we want to make sure it is robust and the fear that people have is a lot of that money went into the reopening rotation trade. Not just in the reopening, they reached for the lowest performing, for the biggest laggard, for the hertz of this world, for the airlines of this world and there is concern that if the reopening doesnt go smoothly that retail will get burned the big hope is retail is robust enough to get through the cycle but there is concern that they may be over their skis mohamed, there was a call this morning from some strategists at jpmorgan who are saying theyre going to over weight stance on u. S. Equities versus the others. They took some profits at the end of 2019 and went to a neutral stance theyre looking at the United States and beyond u. S. Equities theyre looking at sectors theyre looking at sectors like utilities, staples, pharmaceuticals and bond proxy sectors. So thats away from the nasdaq high flyers that the market has been kind of rewarding to this point. Tows that sound like a smart call to you . I heard you mention that earlier and i wrote down i have to go look at that report. Those are the stay at home sectors, what you just mentioned to see how they reconcile these with stay at home stocks i understand people who are willing to put behind the reopening trade taking a very longterm view, but putting money behind the stay at home without technology is quite an interesting call i look forward to reading more about this. I saw a little bit more i think they said the cyclical is ending and they think the United States has a better, more favorable sector outlook for this i think they had kind of looked at europe as kind of leading the way for a little while and now they think the u. S. Is back in the pull position. If this is the trade of take money out of the rest of the world and put it in the u. S. , then that makes sense. I think the u. S. Will continue to outperform the rest of the world. Im particularly worried about emerging markets i think people under estimate how tough it is for emerging markets. Their first challenge for emerging markets was deelgt dealing with a spillover now theyre dealing with their own covid crisis so if its a relocation trade, that makes sense if its an outright trade, id like to know more about it. Mohamed, always great to see you. Thank you for joining us this morning. We will talk to you again soon. Thank you, becky. Thank you andrew okay. Coming up when we return, new york getting ready for phase 2 of its reopening weve got details on that after the break. Take a look at futures ill show you where things stand. We are now two hours before the open, a little less. Dow off 88 points. P as we opened there and the s down 10 points squawk returns in just a moment. Can i find an Investment Firm with a truly longterm view thats 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. Welcome back, everybody. An update on reopening america new york city reopens phase 2 today. That means bars and restaurants can reopen dining and stores can open retail but as of now, no nail salons or massage parlors are allowed to open. Playgrounds will reopen but team sports are still prohibited. In texas they suspended liquor licenses for covid19 protocols. A second infraction earns a 60 day suspension prospects may be dimming the 23 clemson Football Players tested positive for the virus. Over the weekend Sports Illustrated said a large number of lsu players are in quarantine to slow the virus. Kansas state suspended all football workouts after 14 athletes tested positive last week there were positive tests from Football Players. University of houston, alabama, auburn, south florida and virginia andrew hey, thank you, becky. Blaming the outbreak on imported salmon theres a pork plant in germany. We should caution about the Science Behind the accusations through eating this. A pepsi could he factory that manufactures lays potato chips was forced to close after eight workers tested positive. Coming up, as america gets back up and running, retail has seen a bounce. Well speak with Mickey Drexler about the retail revival later in the program, larry kudlow will be our guest as we head to break, check out the correct stats that i was referring to earlier that i knew was wrong. Dow is up 39 . S p up 38 and nasdaq up 45 since those marleaus we like to if were going to make a board, we like to have the right numbers on it. Were going to do that from now on well be right back. I got an oriole here. Eh. Common bird. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. Well come back futures are up once again its diverging. Thanks, joe meantime as states across the country continue to reopen, lets talk about retail and the retail sector. Shoppers began spending and clothing and accessory stores reported the biggest percentage gains with 188 percent it remains bleak we were talking about some of the numbers. You are seeing a lot more spending its true. I think whats happened is industry was having a lot of that prior to covid and i think covid accelerated what was actually on the way happening. Too many stores, too much discounting, not enough interesting product, too many shopping malls and, you know, for those of us who might have been on the negative part of this, it was clear you didnt need all of this choice, especially with an amazon coming down the road or parts of walmart or commodities coming down the road so no surprise over leveraged and mostly too much and not enough great choice so i still think were there and i think well remain there let me ask you this you work with a number of direct to consumer businesses and other brands that are upstarts trying to make a name for themselves. A lot of companies have tried to stay off of the amazon bandwagon, meaning they havent wanted to sell through amazon because they wanted that direct to consumer relationship the question id ask you is in this environment where amazon has now become the shopping mall, where walmart has become the shopping mall, do you get into business with them or do you try to remain independent in this kind of environment for me, again, its personal. I try to remain independent. Theyre nothing but great marketplaces and i wouldnt with total due respect, youre not going to get an interesting assortment thats all, again, personal to me whats interesting, youre going to get the best commodity assortment there is thats deliveries, efficiency and so on and so forth so i dont think you get in with them i never wanted to. Because im obsessed about controlling distribution and price and if you look at the amount of goods in america sold on discount, its beyond anything that would be acceptable if you really wanted business i never wanted to wake up in the morning dependent upon a brand, and its been 40 years for me where i didnt have to wake up and say, uhoh, whos selling that and what prices and it goes on today every single day look at the pricing. If you have three or four brands, like in our case we have alex mill, a new company we do sell wholesale to a degree but we cant really control the prices of the wholesalers. Long term thats not a way to win. I learned this working at bloomingdales. All of a sudden alexanders across the street had my goods in season. Where does that leave me as a retailer it leaves me competing with a company thats across the street that has lower prices. So i wouldnt want to trust my merchandise to someone whos going to under sell me and it has a slow, slow movement so it has changed the whole nature of the beast. Hey, mickmickey, you are an amazing merchant somebody who could always figure out what the consumer wanted before the consumer ever knew that themselves, but im wondering if this new era, this new environment is going to reward the best merchandisers or if were in a situation where you have to be able to get delivery to the customer you have to be able to handle that back end, the infrastructure and its much more complex these days. What do you think about that well, i think its a really good point its more complex. For me, its about the merchandise and the complexity can be figured out from an engineering point of view, there are Many Companies that help with complexity, but when i see all the startups ive been watching over the past few years have lived in a startup environment when i left j. Crew three years ago, i was looking for i was helping out, i was looking for companies that were there for a reason and the reason isnt next day delivery we could all do that if were good at it and theres people helping every day. The reason for me has always been an emotion, a look at a point of view, a brand that speaks to you and a visionary merchant who kind of looks at the goods, they look at the food in the restaurant, they know how to communicate an emotion with a great point of view and i see a great shortage in our industry so that really good merchants are, in my opinion, few and far between. Hey, mickey, i wanted to ask you a separate question. You used to be on the board of apple for many, many years during the time steve jobs was running that country it is a company sometimes masquerading as a country it is a remarkable company im curious if you would weigh in on some of these questions around if it goes to the platform issue, similarly with amazon, where you have a platform, if you will, and then you have people trying to build on top of that platform and having people build through that platform there are lots of regulatory questions about apple, questions of amazon, whether theyre going to build their own things, whether theyre going to take too big of a piece of things in terms of sale. What do you think of it . An area im not an expert in, amazon Sells Everything and they do it better apple has the best few products in the world and what other phone do you buy but an apple. Great delivery system. I was against apple when i was on the board selling walmart i was wrong. People need to buy apple and when you are buying a phone, youre buying an p apple phone you can buy anything you want at amazon who has the best delivery. I was probably a minority. This was against my thinking about dont let walmart have that dont let all the other companies have it. What steve did when i met him is he said i want to have the vertical company and he became a vertical company being the greatest retailer in the world but it didnt affect the volume and business. I have to ask you fashion questions. Youve given me fashion advice youve told me what to wear. Joe and i are wearing ties youre not wearing a tie now are we going to wear blazers im wearing a pair of lululemon abc pants today because im home and i can relax in this way. Whats it all look like . Thats a hot pant and people like that. I think its going to look like, frankly, what alex mill, the Smallest Company in the world looks like its going to be classicish. Youre not going to throw the clothes out. Youre going to get high quality fabric its not going to be on sale someplace and i always say a good fashion retailer, you cant leave the store not looking good maybe this is a plug for number six for me, but i love alex mill its what i wear and you cant its i think its going to look like classics with a spin, with a twist, with taste and detail and really important, quality without crazy prices look at the price of goods out there. Give away on sale or the better goods, the old double markup which really eliminates a lot of customers. Were opening our store again next monday and i couldnt be more excited about what were doing and, again, its so its one store and its one Online Business and we have a team, my son and som sack and i am not prejudiced in that regard. Mickey drexler, it is always good to see you. We wish you a lot of luck with that open. Well check it out thank you again. Appreciate it very much. Mickey drexler thank you very much andrew, i think the take away on that isthat you and joe are wearing hot pants. When we come back apple ceo tim cook are taking the stage today at the companys Worldwide Developers conference after the closure of 11 of its stores because of spikes in the cases. We will have more at apple. Later dont miss nec director larry kudlow, the recent spike in coronavirus caseanmus d ch more. Squawk box will be right back. Good morning, is the link beginning to weaken . A surge around the world and right here at home, but this morning futures are showing mild declines were going to talk about why that is. Its reopened. It turns normal. We understand from the u. S theyre moving into phase two of reopening. A Huge Development for one of the hardest hit. The final hour of squawk box. Good morning welcome back to squawk box. The lows are threatening to get back into the green where they were very, very early on treasury yields, take a quick look i guess if you think things are improving, youd like to see the ten year note go up, probably not go down in yield were about. 692 . Im wondering when november 4th or whatever that day is, i wonder when or if you are able to discern anything from the stock market based on the prospects of President Trump versus Vice President biden because we had Vice President biden on the show, guys, and he said day one, those tax cuts for corporations get rescinded maybe thats for profits, maybe a lot of that hasnt been helpful to the economy we had before coronavirus but maybe it was. So i guess theres a lot of time left, but certain things have flipped. Certainly the polls, many of them, the national polls, battleground states dont look much better. It was like this, its flipped and its widened do we see something . It depends on the composite of the senate. Thats getting questionable, too. Thats getting questionable, too. So i dont know when we actually start weve got so much more going on with coronavirus especially in the middle of this what looks like very troubling spikes in certain states i dont know if we started thinking about moving on to electoral concerns at this point. I dont know you did see the markets pick up when it looked like it was going to be joe biden instead of Bernie Sanders that was a big move for the markets. Thats when the worst Case Scenario was taken off the table. You know, there will be a difference if youre going to raise taxes immediately and get rid of the entire tax cut. Well see. Well talk about that in a little bit i dont think thats the plan no, no, i just just to be 100 clear, i think the plan is not to get rid of the entirety of the Corporate Tax cut that would be part of it but not get rid of it completely. I thought he would just reverse the entire bill. Hes just talking about Corporate Taxes. That would be not great either, would it is he saying going back to 28 or 29 it wouldnt go back to where it was. He was talking about going back to 28 on the Corporate Tax rate the real Corporate Tax rate is what else happens to the individual tax rate, especially the most wealthy not wealth tax per se but that would be on the table. He says he would do this immediately. I have my own questions about whether that would even be plausible given where the economy may or may not be at that point well see. You were asking those you were badgering him actually about what the hell are you talking about . You were i dont know i didnt know who that was i was like remember lets get i remember very, very well. Lets get an update right now on the coronavirus because obviously thats going to be driving so much of this. The World Health Organization said yesterday saw the biggest single day increase in cases since this pandemic began with more than 183,000 new infections testing has vastly increased in the last few months, but by the numbers late last week the United States had about 30,000 cases a day. That would be the worst level since early may. Yesterday authorities reported nearly 37,000 new infections theyve been observed rising in the south, west, midwestern parts of the country in the meantime, apples Worldwide Developers conference kicks off today. It is one of the most important days of the year this years event comes as apples app store is under fire. Josh lip ton is here he joins us with some of the details. Josh, good morning. Thats right, becky tim cook will take the stage at the companys big software show. His job this morning is to convince developers they should spend their time, money, efforts to build apps for him. They boast 23 Million Registered Developers that have earned more than 155 bld since the App Store First launched in 2000 alt the show does feel different its taking place as Tensions Mount over the app store we know european regulators have opened an investigation. Thats filing complaints by spotify, rakuten. Apple calls those claims baseless there was the firestorm that erupted over a new email app called hey david hanson is a well known name in tech and he is currently fewer yos. The app violated their orders. Right now investors dont appear worried by any of this that stock has rallied nearly 40 since early april. Now on track for its best quarter since 2012 but the app store is critical. A big driver of that faster growing Higher Margin Services segment. Guys, back to you. Two more voices now to talk about apple strategy apple as an investment joe joining us now, ben thompson author of strategery. Let me start with you and then ill get to you, ben i think that actually is a word now, just like refudiate and w did stratergery. Did you steal it he never did it it was will ferrell in his impersonation of george. If you are going to mispronounce it, strategery is my refudiate is pretty damn good. I like strategery you intuited more than people did. Pretty darn good work we can improve words, ben. Not all the great words have been invented. Wamsy, have you seen hey well get back to you in a second wamsy, friday, that was disconcerting on so many levels. Is apple just more theyve been more cautious all along we had just had a slew of politicians come in and say no way were ever reclosing again we just cant do it. Good morning thanks for having me it has been an early indicator of sorts theyve been doing phased reopens, taking into account what the local conditions are and i think its important from an apple perspective, they view the safety of their employees as high priority clearly they dont want to have Retail Locations that create a lot of traffic and be responsible for the spread in some ways i think its prue den prudent. Apple worked through closing all of the stores and delivered a pretty decent quarter despite that in light of that its not critical for the stores to reopen when hot spots are peaking. Take a more prudent approach, be more phased and work through what the local dynamics are and manage that risk i think its very much within apples wheel house to do that i dont see a huge problem emanating from that per se as long as we have counties that are working with specific rules to make sure that people are safe ben, youve got a lot you want to i mean, that wasnt will ferrell who said im the decider. He actually did say that, right . Im the decider. Never mind im sure w did say that. You need to get this off your chest, a couple of things, a standoff with apple store, which looks like its going to happen. I dont know if its great for apple, but its not great for intel. Yeah, theres certainly a lot going on there i think your framing of the developer story knowing that the stock doesnt seem to be impacted much. I think thats probably appropriate. The Services Narrative is a huge part is great for the stock and, frankly, you know, this is really an issue of apple and how people think about them because their relative power is pretty absolute in this case. Frankly, their wiggle position is pretty strong as well, particularly in the u. S. Europe might be a bit of a different matter, but by and large apple has the right to do what it wants to do. I think my objection is i just dont like what theyre doing. I think in the long run its a big burden not necessarily the 30 . Im sure lots of people would like that to be lower. To have to support a larger section and people who are trying to serve android, the web, all sorts of different platforms adds a level of complexity that makes it harder to start businesses. Apple likes to talk about all of the new Business Developers that they have on their platform, all of which are true. I wonder how many more there could be if this was a platform that had easier. Its affecting not just Small Developers but large ones as well apple seems pretty determined to do the real thing. Theyre pushing whatever buttons are necessary to make that go and that is what appears to be happening. Hayes is a casualty. The investors are more afraid of apple in 2020 than microsoft two decades ago. Is this in terms of just being the elephant in the room and just sucking all the air out of all technology, i guess, right well, the issue is the way apple exerts control is they decide if your app can be in the app store. Say you have a critical bug and submit the update, apple has to approve that update. If they dont like what youre doing, if they want you to change your Business Model say your app has been there for many years that have a sas model, apple is going in and saying you need to add in apple purchase until you do so, we are not going to let you update your app in the store given how important i0s is as a channel, its generally the wealthiest part of the markets, developers cant afford to say no they cant afford to have their apps be updated or not be in the store. People are fearful apple will retaliate. Wamsy, anything new from apple . Yeah, joe, look i think this is a Developers Conference so clearly focused on developer tools and making sure that, you know, all their oss are updated. That update is there that when you think about Apples Services and all of the controversy this has existed for a very long period of time when you look at what apple has been doing, they have taken some feedback, right . 30 went from 15 from a subscription standpoint. Theyve shown some willingness to move. Theyve also shown a lot of willingness in developers having access to the ecosystem in a way that makes it completely seamless theres so much risk of malware and so it draws the Developer Community to come there. You get a wallet access that is unparalleled compared to any other ecosystem so when you think about the broader sort of ecosystem that has been mentioned and ben alluded to, it is 500 billion of services. 20 billion of app store ref knew and an economy is half a trillion the framing of this as a risk, as it pertains to the eu, i think when you look at the broader picture its a risk thats manageable. Hey, ben, just a quick question on the antitrust front. I understand where you sit and ive been reading your newsletter for a very, very long time the question id ask you, you look at like a Walmart Walmart can decide what it wants to put on the shelves, what it doesnt want to put on the shelves. It can take it off, put it on. I dont think there have been antitrust cases that say you have to take a product when you buy the phone, you understand that its a closed ecosystem, i think its not that somehow the system has changed. Its not that you bought the phone and it was an open system and it became closed how do you think of those . On the second point, theres a case referred to as the kodak case it says you can have a more tightly defined market such as the i0s app store. Youre completely right on the first one. There is a pretty well established precedent that stores do not have aduty to deal and so apples antitrust risk in the u. S. I judge as being quite low. Furthermore, theres also the apple versus pepper case last year which gave standing to consumers to sue but part of the precedent there is a case with illinois brick that says if one side has standing, the other side doesnt theres not much antitrust risk for apple in the u. S this is more an issue, more Political Risk i would say particularly in terms of new laws the e. U. Is looking at things in particular as far as the u. S. Goes, your reading of the situation and comparison to walmart is correct as far as the u. S. Supreme court is concerned wamsy, misunder estimate was used by w. You might be right about strategery. Its a great skit its not a skit im saying that should be in the oxford i misunderestimated you, ben. Im stuck on strategery. Thank you wamsy, thank you andrew, i would never misunder estimate you. The newsletter is stratechery. Is that the ars tech letter no. Thats ars tech thats your tech letter. Read bens newsletter coming up when we return, a lot more on squawk box. New York Real Estate reopening today. A painful three months of shutdown a live report from park avenue inantt mhaan thats next. Youre watching squawk box on cnbc can i find an Investment Firm with a truly longterm view thats 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. Talk to your financial professional or consultant i geh. Common bird. E. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. Welcome back, everybody formerly the virus epicenter is entering phase 2 many workers can leave their offices. Were joined right now from the top top of a new condo in fifth avenue this is going to be interesting to watch. It will be a big day, maybe a day of reckoning for this market, becky. Today starting for the first time in three months brokers can finally start showing apartments in manhattan if you consider manhattan normally sees 2 billion in real estate deals per month that is 6 billion in deals that they lost in the past three. The question now is how much of that business comes back and of course at what plirice listings have fallen by more than half. Sales contracts in may were down over 80 and even precovid you had prices down about 15 . Now the big question is how far could they fall further . Many peoplesaying they could b around 10 that would be a 25 decline from the peak of this market in 2016 or so. The sector to watch and the one that could be the hardest hit is new development. This apartment on park avenue, it is a brandnew condo building this unit is 3900 square feet. It had been priced at 18. 9 million. Now priced at 17. 9 million i am told the developer is very motivated to sell. Guys, i should just wrap by saying despite all of these predictions of a mass exodus from new york city and urban flight, there are a lot of companies and a lot of wealthy families waiting for an opportunity to get in this market the question over the coming months is will there be a meeting of the minds between the opportunistic buyers and the sellers. Guys, back to you. Hey, robert, really quickly whats the price point where you think theres the most pressure and the price point where theres the most demand . What type of income level or asking level are we talking about where the biggest price declines would come. This will start at the bottom 1 to 2 million apartment, theres huge demand for that well see a lot of deals for that 1 to 2 million. The hardest hit sector has been and will continue to be that 5 million plus, the luxury developments, especially new developments like this one which, again, is, you know, 2500, 3,000 or more per square foot that will be the sector that will be the slowest to recover and the hardest hit on prices. Thats my 18 million kitchen right there, frank that is, but its eat in, joe. Its eat in. Behind you. Behind you, thats it . This is just the kitchen. Theres a whole dining room, living room. Thats my island. 3900 all right whatever its not ever going to be cheap in manhattan, lets just face it. Got a fridge and everything wow, thats something. You can keep your food cold in there, i guess thats awesome thats what you get for living on park avenue. Your own fridge. Get your own fridge holy moley. Andrew, you may never go back youre out in the fresh air, the greenery, Everything Else. I didnt want to say, joe, thats my kitchen. Were selling no, its a joke its a joke. You know that if youre in your house and youre talking, theres an echo. Youve already said that from the marble and Everything Else and your foyer, right . Its a running joke i dont know if the audience can get the running joke lets talk more about real estate and the road back in new york city. We want to bring in howard bi bilbry what do you think the real number is in terms of the discount on prices right now in new york city . Well, its hard to say before it opens, but having said that, i think it will open with some demand this whole idea of, you know, there being listings way down as a negative is sort of fell lasch shus because why would brokers put listings on the market when they couldnt show them for a threemonth period so i think youre going to see in the next through months a lot of people looking. We hear anecdotally, more than anecdotally, families that live in the city want to put things on the mark because they want to move to the suburbs or other places long term over the next two to three years, what do you think is going to happen to prices in new york look, i think as long as Interest Rates stay down, i think prices are going to stabilize. They may stabilize a little bit lower as robert mentioned, you know, from the peak theyre probably down 10 already before covid, maybe a little bit more on certain apartments, maybe 15. Maybe theyll go a little bit lower but, look, the city is the city every time theres been some sort of disaster and people have said people are going to flee the city, i mean, i knew three people that moved from the city to the hamptons after 9 11 they all came back within a couple of years. There is no place like new york city so new york city is not going to lose everyone and, yes, there are always some people that want to move to other places they want to move to the suburbs. They want to move to a lower tax state. Its all understandable. There are still plenty of people that have to be in the city and want to be in the city howard, you just mentioned taxes and i want to ask you about that because a lot of the folks im talking to in the real estate world are very concerned about the tax base in new york city and that eroding given the mobility of people that, by the way, arguably a lot more mobile than they were even after 9 11 in terms of the ability to go live in a state like florida and i dont want to say commute, but be able to go back and forth, live in other places i think theres lots of conversations going on this summer about all of those folks living in the hamptons and people out of state and whether theyre paying city taxes this year theres real questions about the municipality, city, paying firemen, police, all of the things that the city needs so desperately. How concerned are you about that and what it ultimately does do to the value of property yeah. Well, the pandemic was horrible and hopefully well get through that and well have a vaccine. I would say that i am also more worried about the politics of new york than i am about other things that have been going on i think its a real problem that has to be fixed. I dont have i dont have any great way to fix it like others, but i think that the government is sort of the way theyve operated for a while, whenever they needed revenue they came to the Real Estate Industry to get additional revenue, mortgage recording taxes. And before covid and the shutdown, they were contemplating a tax i was talking about last time i was on squawk box. There has to be other forms of revenue and belt tightening, and i think Something Else that really should happen would be whoever wins the election in november and whatever party is in charge, i think there has to be a new look at the loss of these state and local tax deductions, the s. A. L. T. As we call them, because i think that has to be eliminated that has hurt too many people and caused too many people to leave new york and new york city. Howard, real quick because we have to go if you had an apartment in new york city you were thinking of selling, do you try to hold . Do you try to hold on for a year, two years . What do you think the whole time is if you have a home in the suburbs, do you sell now and strike while the irons hot . Yeah, i definitely wouldnt hold onto the suburbs now if i had a buyer because the suburbs has been down. The suburbs never recovered from the financial crisis so it probably is going to be a tie and you want us to hang around for a couple of years, you have no motivation to leave if you have a motivation, youre going to price it to the market and youre going to sell it. All right okay howard, great to see you appreciate it. Talk to you soon thank you. Joe. Pleasure. Thanks, andrew. Coming up, kudlow, National Economic council director, larry kudlow on the reopening process nationwide and whether the economy needs a new jolt of stimulus take a look at the shares of Virgin Galactic. Theyre up in the stratosphere this morning on news that the company signed a deal with nasa under at agreement Virgin Galactic will develop a rui krutment and private astronauts saw those guys they said they have plenty of room theres 12 of them the whole thing got me feeling claustrophobic stay tedun youre watching squawk box on cnbc still to come this morning, much more on the markets if youre watching, the futures are down but the nasdaq is on a sixday winning streak at this point. Well talk more about that. Next a special conversation with white house Economic Advisor larry kudlow dont go anywhere. Squawk box will be right back. Dont forget to subscribe to our podcast. Youll get interviews, origina content and behindthescenes access look for us on apple podcasts or on your favorite podcast app and subscribe to squawk pod today. Yyeah yeah hey, hey yeah yeah, everything is runningis smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Because the tempurbreeze transfers heat away from your body. So you feel cool. Night after night. During the tempurpedic summer of sleep, save 500 on all tempurbreeze mattresses. Cool . Drop the taco. Get in the car. Does this sentra feel like a compromise to you . Wait, what. . The handling is good, right . No compromise there. Nope watch this. Umm. Bbrie. Brie brie rear automatic braking. So if this Nissan Sentra isnt gonna compromise, why should you . Youre right atta girl. The allnew Nissan Sentra. With more standard safety features than any other car in its class. Welcome back to squawk box on cnbc. Heres just some of the stories that investors might be talking about today. U. S. Banks have seen a 2 trillion cash surge into their accounts since the coronavirus first hit the u. S. Back in january. The fdic says deposits grew by 865 billion in april alone more than in any prior full year and white house Economic Advisor Kevin Hassett will leave his post this summer according to an axios post hassett had served as chairman of the council of economic advisers before he left in june and then you might recall he returned to the administration in march to help with the response to the coronavirus pandemic and ive gotten bored sitting at home, but it hasnt come to this painting rooms sherwinwilliams is the latest company to benefit from sheltering in place. Paint maker has raised the Current Quarter Sales Guidance as consumers spend more time on house projects amid the pandemic thats somewhere down the list, becky. What do you think . No. Im thinking pink, right yes repaint the ceilings. I like that joke but i dont think thats ready for air have you done i dont see you in one of those paint have you why would you paint a rental you let the basement flood and you didnt do anything about that, did you . Is that still flooded down there . No. Were doing okay down here its looking okay. What really happened . Did you ever tell us what actually happened with the i mean, thats not you should check that before you we had a drain in the basement that has a pump and the electricity had gone out overnight. Sump pump. And it didnt restart so the drain with the pump didnt work. But we got the pump and the drain working. It sucks. Yeah. How long and we also have a generator that now is attached to the pump like a generac generator . All new to us i honestly dont know. It only works for part of the on certain outlets so its only on essential outlets now that is essential, clearly we didnt realize. No painting none of us have helped with the painting sherwinwilliams okay when we return, a lot more on the markets youre looking at the dow off 71 points nasdaq off 7 points. S p 500 looking to open up 6 points American Airlines announcing it will see 3. 5 3w8d in new financing. Plans to sell 1. 5 billion in convertible notes and another 500 milled facility. They are trading lower as well stay tuned, you are watching squawk box. Larry kudlow on the other side of this break. Can i find an Investment Firm with a truly longterm view thats 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. He is white house National Economics accounts director. Great to see you thanks for joining us today. Maybe we can start with the number of coronavirus cases. We have seen more cases out there. I know part of that is were doing more testing higher percentage of tests have positive results. Nationwide, becky, the Positivity Rate is still quite low. Well under 10 i do agree the numbers quoted to me by the health people, im not the expert, they are, over the weekend, 37 states that have virtually no problems. There are 13 states that do have hot spots. By the way, part of that is massive new testing. Were running 500,000 new tests per day so youre going to pick up some. I was just interested, i was going through it this morning. Some of the hot spots that you probably have talked about, arizona, no question about it. Florida, no question about it. Nevada, north carolina, oregon, texas. But on the other hand, becky, just to balance it out, im looking at this, colorado down 30 . Here the washington d. C. Metro area down 31 i illinois down 36, massachusetts down 27. Michigan, thats really something, down 80 on case rates. So, you know, this there are some hot spots were on it. We know how to deal with this stuff now. Its come a long way since last winter, and there is no second wave coming. Its just, you know, hot spots they send in cdc teams weve got the testing procedures weve got the diagnostics. Weve got the ppe. I really think its a pretty good situation fatality rates, incidentally, fatality rates continue to decline looking at the one day and seven day fatality rates less than 1 2 of 1 even while, as you noted, cases have gone up in some places so all in all i think its a pretty good situation. Reopening the economy is the key to Economic Growth weve got a lot of economic chutes coming on we spoke with Scott Gottleib earlier today, the former head of the fda his point is that in some of these states where you are seeing hot spots its a lot of the younger people, people ages 30 and younger who are getting it at this point the good news is a lot of them do not have the same sort of adverse reaction to some of these things the concerning point is do they spread it to their parents, grandparents, other people theyre around who may have some underlying issues. I guess nobody wants to see the economy shut back down we want to get back out there, make sure things open up would you be in favor of targeted places if you find out that its linked to bars, 30 years and younger who are kind of spreading it. Would you be in favor of shutting down potentially the bars and slowing things down so things dont get out of hand well, look, again, im not the Public Health expert i think that sort of thing is up to the individual states, the governors in some cases the mayors Scott Gottleib is a dear friend and a brilliant guy. Im sure he told you how important it is to maintain best practices, social distancing where applicable, again, its voluntary. Where applicable, facemasks, some kind of cloth facemask and get testing where possible im not going to advocate shutting down anyplace if thats what the locals think is necessary, but, again, the cost of shutdown in economic terms, psychological terms, in addiction terms, i mean, weve learned a lot since last february so ill leave that to the locals, but i sure hope not. I mean, look, were in a position now, again, i want to get back to the economic story, were in a position now were going to come on much stronger in this recovery than a lot of folks thought, maybe than we thought here you know, theres been a whole bunch of green chutes on retail sales, on employment, on new business applications, on travel, apple mobility indexes, Housing Demand is strong, auto demand is strong this is great stuff. The employment was up 3 million in may the early estimates are about 3. 5 million new jobs in june that comes out july 2nd. Just as a reference point, the Congressional Budget Office is suggesting 20 plus q3, perhaps q4 if you get 20 and 5 percenter in q1, becky, that will get us back to the prior peak in the economy in 2019. That is wonderful news and the temporary layoffs and furloughs, folks are going back to work so i think the rescue package was solid and i think the economic numbers are coming on great. Well all hope and pray it continues. Look, lets have best practices on safety guidelines. Andrew . Hey, larry. I wanted you to comment on the president s comment over the weekend at that rally in tulsa where he effectively said that he said to his people, slow the testing down please. They test and they test. I know that there have been other members of the administration that have suggested somehow that he was joking i saw it with my own eyes. You saw it with your own eyes and id also suggest to you that just a week ago he said, quote, if we stop testing right now, wed have very few cases if any. So theres been a series of comments and quotes that he has made that have not, by the way, been suggested to be jokes prior to this. Well, andrew, look. I cant account for all of that. I felt he was tongue in cheek when he said it. I was not there. I didnt see all of that rally in tulsa i truly believe its tongue in cheek. In the meetings that ive attended whenever this subject comes up, it comes up in connection with the economic rebound and testing and best practices have always been his belief and hes listening to the Public Health people, deborah birx and so forth. Theyre giving him the right advice i believe hes taking the right advice i cant settle this. I think it was tongue in cheek youll have to ask him i think the key point, i really do think the key point i got, again, 37 states are in great shape. You have 13 states where there are hot spots. And you have tremendous declines, declines in positive rates from new cases in major, major States New York is opening right now. Thats a huge chunk of gdp people will come in or not but theyre going to be wearing, you know, face coverings if they need to. There will be temperature testing if they need to. I think weve learned a lot. I think private industry and private business is very sensitive to the needs of their workforce. Theyre doing everything they can to assure them and take Safety Measures and i think the local, the local governors and mayors are going to have a piece of that, too andrew, im not going to make much of it sometimes theres a president ial sense of humor that works for some but not for all i cant convince you if you dont believe it but i can assure you that he wants safety and security and Economic Growth and that seems to be the trend line right now i think were in pretty good shape certainly compared to where we were last winter. Larry, we hear reports that the administration would like to see 2 trillion package that is followed up for Additional Support and stimulus where would that money be focused . What needs to happen there are a lot of questions because the 600 extra for unemployment that goes into peoples paychecks will end at the end of july at this point. Well, look, were planning on this were having pretty much constant policy meetings im going to go in to one after we all talk and i cant pinpoint a number there is a lot of predecisional, shall we say, rumors or this and that nothing has been completely determined i will say as a generic matter, first of all, after the july recess there is likely highly likely to discuss in the house, the senate and the administration some new plans for Economic Growth. Okay theres probably i saw a thing in the journal today almost certainly going to be a package. Whats in the package, becky, i dont want to predict. I will say this. Things the president has talked about publicly okay he has talked about a payroll tax holiday for the workforce. Hes occasionally talked about Capital Gains tax relief if you buy something in the next six months, youll be excluded from the Capital Gains for quite some time. Theres a story about private equity in the newspapers today he wants to help out with some form of tax relief restaurants, entertainment, athletic contests and things of that sort. We want to help out the Tourism Business which has been hurt very badly and we also want to reaward people who are going back to work i think thats very important. Were also very concerned about protecting liability and insurance in covid19 cases for Small Businesses and everybody there may be some targeted spending discussions going on between the three major bodies all of this is up in the air those are things the president has said publicly and im happy to relay them to you no decisions have been made. What about your own thoughts just about whether states or municipalities hit particularly hard should get additional funding . Im sorry, becky. Places what . States and municipalities hit particularly hard by the p pandem pandemic, should they get additional funding we are looking at everything. Certainly anything related to covid19 deserves serious, serious attention with respect to some additional spending. We will see about that we will be looking at the whole pan of options for the states. We work well with the states it is a remarkable achievements. Vice president pence have taken the lead on this constant discussions with governors and many of us in the white house have helped them out wherever possible. A lot of this, of course, the right machinely and equipment and the ppe stuff and the masks and delivery dont forget, we are making pretty Good Progress with respect to Vaccine Development and Therapeutic Development which is terribly important. Therapies might help out during the summer months. I dont want to get too specific were looking at a whole bunch, a whole bunch of assisten pl eae plans. Ill say this, i supported the cares act. I think the ppp program probably saved 55 million jobs. I think you saw it in the may numbers. Temporary layoffs and furloughs going back to work by 3 million and i think in general the rescue package was extraordinary led by the president , tremendous bipartisan votes in both the house and the senate i think by and large, it worked. I saw a piece in New York Times this morning that suggested the Government Support programs actually held down the poverty rate i think thats remarkable. I know the income increased a lot in april and probably will continue in may and june so, i think that package worked. Were proud of it. I think now id love to see us move, this is just me talking from the rescue mission, you know, through the transition of the reopening into medium and longterm Economic Growth incentives so we can really have not only a great rebound in the second half, but 2021 can be a big bang year and so can 2022. We did it once, we had going great guns, its a fundamentally sound economy and as the opening occurs that is my view. Id like to slant it towards Economic Growth incentives as much as possible larry, thank you. It is great to see you this morning and we hope youll come wa back with updates as these conversations progress great thank you, becky thank you, andrew. Great to see you. Thanks, larry. Lets get over to cnbc headquarters jim cramer joins us now. Jim, we have mark grant on a little bit earlier and, you know, he sort of changed his more negative viewpoint about stocks saying, look, the fed is doing this, therefore i think stocks deserve to be where they are and i was like, well, is there a day of reckoning because thats what we hear. The underlying economy doesnt warrant where stocks are if we dont reopen, it just seems like if there are some bumps along the way, it seems like there might be a day of reckoning or do we embrace it and think the economy will catch up with stocks i think a lot of the stocks going up with really based on companies that are software that are therefore able to make it so you can work at home or staples which actually have better than expected earnings because people are eating at home or drugs which are companies that are involved with trying to solve covid. None of these companies is wrong. Theyre all correct to go up when you look at clorox and you look at united and you geto uo o united it is clorox approved. Many of the Companies Going up are going to have their earnings up i have trouble with the people who say this market is too expensive. Dont forget, they forced people into equities. And a lot are being cut or eliminated so many marginal companies you dont get income from any more im tired of people saying the mpiearcoans e expensive. If oil were still 12, i might say, that has to help a little make banking easier. Deposit checks, check balances, pay bills, and more. Explore all you can do with our Digital Tools from almost anywhere. Pnc bank. Good monday morning. Welcome to squawk on the street. Coming to you live from separate locations as we kick off an important week new york city enters phase two reopening today as we watch rising cases in other u. S. States futures slightly red here as the nasdaq shoots for a seventh day higher that would be the longest win stre o