Brennan and jon fortt. Markets have been well off the highs. Dow was up 937, trying to hang on to about 400 points on the dow right now. Lets bring in mark mahaney of rbc, david lovevitz of jpmorgan. We knew 2700, 2750 would be a bit of a battleground and its turning out to be exactly that yes, exactly. One of the things thats occurred here over the past couple days really over the course of the past weekend is you finally saw consensus earnings system begin to come down and the narrative that had been in the Market Equities are looking cheap, the question we were always asking was cheap relative to what earnings . When you use the new estimates that are around 145 a share, you know what youre seeing is stocks are looking fairly valued not outright cheap and i think thats a big part of why were seeing things run into resistance at these levels mark, its a great opportunity, davids answer, to ask you how in the world analysts are coming up with any kind of estimates given the lack of guidance and anecdotal signposts from a small number of companies. What do you plug in to your models right now when youre trying to calculate earnings for the year well, the data points are piling up. You did have twitter prerelease a call and comments by facebook, a study that came out from the Interactive Advertising bureau this weekend that had two Interesting Data points. 75 of ad buyers expect the current environment to be worse than the great financial crisis and a quarter of ad buyers are putting in zero in terms of their ad spend for the june quarter. The data points are piling up and weve had to react to them a couple times already well probably have to keep reacting to them well get all the news from the company to start printing in about two weeks. You guys at rbc put out an Online Grocery report which is relevant now considering what everybody is needing and going through to get food. Youre bullish amazon still. I read this report and my takeaway was more that target and walmart are likely to give amazon more of a run for their money in grocery Going Forward because of the downloads theyve seen and the preparations theyve made and now people are noticing isnt that the case . I think theres a large truth to that. Another company i mentioned, instacart, but walmart is based on our survey work i dont think this is an Inflection Point weve done the survey for five years. It is an acceleration of a trend thats been building so they found about 55 of respondents in the u. S. Said they have purchased groceries online. Last year 35 . It jumped up a lot and we also found that almost 55 of respondents said that they thought that this covid19 crisis would cause them to permanently increase their purchasing of groceries online and amazon, im sure, is going to be one of the beneficiaries of that if they get the Customer Experience right theres an article in the New York Times this weekend that said amazon was seeing as much as 50x increase in grocery orders amazon needs to quickly catch up and hired the 100,000 new employees. This is one of the areas i imagine theyre deploying them to if amazon gets this right, the structural stepup somewhat Inflection Point of where people buy groceries Going Forward. Amazon can be a beneficiary and we think it will be. I want to dig into that a bit more with you, mark, but david, back to the point you made about stocks being fairly valued here, i mean certainly were seeing this rally, second day in a row, because there are these early indications based on the data we have so far the coronavirus pandemic is slowing in some hot spots around the world, but we dont know what earnings picture, let alone the economic picture, is going to look like for all of 2020. When you talk about fairly valued what does that sec ffact and could there be a leg lower given the fact we dont have those numbers . I would agree that riskses are tilted to the downside i think what markets have been focused on here over the past, you know, couple weeks is first off the policy response from the federal government and the Federal Reserve and then more recently as you mentioned the slowdown in the number of cases in major metropolitan areas, primarily in new york city i do think that the markets focus is going to begin to transition here. This has been a very headlinedriven, heavy beta environment where markets have been swinging up and down in a given day. I think to some of marks comments what the next couple weeks will tell us from an earnings standpoint will shift that to more of the micro and see greater dispersion and differentiation between winners and losers and then importantly were going to get a better sense of what the contours of this recession are going to look like i mean the key question remains, how long is this going to last and then what will be the ability of the Small Business community to reabsorb this slack which is currently being created in labor markets when we get to the other side we dont have answers to either of those questions its anybodys best guess and why the next couple weeks will be so important and we are cautioning clients against embracing too much cyclicality in portfolios. We prefer to play a defensive form of offense at the current juncture mark, three stories stood out to me today from a media standpoint the way that affects your business or your universe one, the masters was delayed but not canceled, tentatively schedule for fall. Mlb and the Players Union have a plan theyre working on to maybe start Travis Kalanick inia and the nfl will hold their draft virtually. Is there a hope within tech and social there might be content in the coming months that we maybe didnt think would happen . Well, lets see i certainly hope so. I think everybody else does too. It does lead to the point that theres a very little new content coming out and so the companies would have large content databases like netflix benefit from this environment. I want to be clear, i think there are few companies that benefit from this environment, very few and the question what about the second order impacts all were doing is looking at the impact and people being forced to stay at home, all of the companies i look at, even amazon, if unemployment rates rise to 20 that will impact amazon theres no escaping that the question is whether were going to get that. If we do all of the companies will be materially impacted. In the near term with the dearth, the dearth of alternative entertainment, in the homes, you want content, all you have is netflix, ozark season 3 is out, thats the one i can recommend. Mark, i want to go back to your thesis around amazon and Online Grocery, though. I live in Westchester County you cannot get a delivery slot you cant get it whether its amazon, instacart, if you are lucky enough to get one, it crashes and gets canceled, grubhub, last night, tried to put an order in, 30 minutes later canceled with the restaurant at least from a logistics and transportation standpoint there are a lot of hidden costs associated with some of these companies . And the challenges you talked about, if amazon and other companies dont solve this, they will have missed an enormous opportunity. If enough consumers like yourself have frustrating experiences in terms of getting groceries delive groceries delivered at home, the bar is low the first time youve had to do this theres about a twomonth period if amazon and instacart and walmart dont get this right and walmart may be best positioned because they can do the click and collect which is very popular now, so if amazon, the real Home Deliveries dont get this right they will have missed a huge opportunity and im sure amongst Senior Executives at amazon this is panic issue number one this is a chance to take lions share and market share and if they cant optimize Consumer Experience they will have blown it im sure thats why they hired 100,000 new employees off the bat when the signs starteded hitting. Yeah. Fascinating. Mark, david, thank you as always, for your guidance and intelligence well talk to you both soon. Thank you, carl. Take care we just heard the latest numbers on covid19 from new york from governor andrew cuomo. Heres what he said a few moments ago. Total number of newly hospitalized is up from yesterday, but when you look at the threeday averaging of these numbers, the threeday average is down, which is good news. This is a threeday hospitalization rate we tend not to look at any oneday. Day to day its up some day, but if you look at the threeday average, its moving down, which is good news we talk about the apex and is the apex a plateau and rit nghto we are projecting were reaching a plateau in the total number of hospitalizations and the growth and it starting to flatten this is a projection it depends on what we do and what we do will affect those numbers. This is not an act of god that were looking at its an act of what society actually does. Change in daily icu admissions is way down and thats good news the daily intubation number is down and thats good news. The discharge rate is right about where it was the bad news is 5489 new yorkers have lost their lives to this virus. That is up from 4758 that is the largest single day increase and we talk about numbers, but thats 731 people who we lost behind every one of those numbers is an individual, is a family, is a mother, father, sister, brother, so a lot of pain again today for many new yorkers and theyre in our thoughts and prayers many people across this country. The discrepancy number of deaths up, number of hospitalizations dropping, the number of deaths, number of losses is a lagging indicator to the number of hospital zagsz, right. What happens is a person goes into the hospital, if theyre treated most of them are then released, theyre discharged some stay, some get put on a ventilator the longer you are on a ventilator, the less likely that you will ever come off that ventilator, and thats why youre seeing the number of deaths increase because these are people who came in at the peak, they were not successfully treated, theyre on a ventilator the longer youre on a ventilator the less likely you come off a ventilator. New york is still the most heavily impacted state in the nation new jersey, which is on the curve, a little bit behind new york, is suffering and again, our thoughts and prayers are with them. Of course that is new York Governor Andrew Cuomo with the latest numbers here in new york, which is continues to be the epicenter of the coronavirus outbreak here in the u. S you dont want to see those death numbers. Its heartbreaking to see those numbers, but it is the shape of the curve and the fact that that curve could potentially be flattening based on the last couple days worth of data that is so in focus right now guys, the other thing i would note, the governor did call on the u. S. Military to convert the usns comfort, the hospital docked in new york city in manhattan, to start taking covid19 positive patients and the u. S. Northern command, the department of defense lead for the Covid Operations did announce last night they were, in fact, going to start doing that that adds more hospital beds and more facilities and capabilities in new york city yeah. We will take those encourang gnceaiy. And after the break, dont miss the ceo of intel, bob swan, on how they are handling this ongoing crisis well be right back. Stay with us welcome back intel ceo bob swan announcing this morning that the company is stepping up efforts to use technology to help combat the novel coronavirus. I spoke with him late yesterday about those efforts and what impact hes seeing to demand and how long he expects that to last and what he expects to change when we come out of it. We announced today a 50 million mentpledge, in essence,o deal with deploying the technologies to accelerating the deployment of technologies to combat the coronavirus, and were really deploying the money in three individual ways first, what we call a response and readiness initiative, which is, in essence, dealing with our customers and our ecosystem partners to help accelerate the development of a diagnosis and treatment plans to deal with the virus, so thats one big effort for us the second one is really online training, and its working with nonprofit to really focus on the deployment of technology and devices to help access to technology for underprivileged children to be able to continue their learning experiences and that weve started with firstbook. Org here in the u. S. By committing 5 million and the deployment of 10,000 units the third area what is we call an innovation fund, and this, jon, is meant to tap into the ideas of our ecosystem partners and our employees who are very committed to try to help out in this very dynamic environment. So 50 million commitment across tease three different initiatives, really all geared towards the role that we play in Technology Today and that is to accelerate the deployment of technology to enrich the lives of every person on earth at a time where we have a real issue that we have to contend with. Yep bob, that sounds great i wonder, to the extent that you can, a macro question, with economies being effectively shut down for this period of time, there are lots of questions about how long its going to take to get back to normal, whatever the new normal happens to be. Do you yet have a sense of the viability of your customers during this period and coming out of it and how long it might take for them to be ordering from you for demand to return to levels where it was before yeah. Its a great question, jon, and i would say that i dont have great clarity into how this plays out, but what i do know is, for our technologies and for our partners and customers technologies, for the most part, everywhere we operate around the world weve been designated essential services think of it, essential services are people need access to their pc, their phone, they want to connect to the internet, the technology thats deployed through hospitals, through industrial facilities, through diagnostic imaging equipment, all these things are, in essence, compute devices and those compute devices need essential Services Like the technology that intel and intels partners develop today our focus in energies in the last several months and we expect Going Forward is how to do we ensure those essential services get into the hands of those who need them most importantly to help keep employees safe, but the economy continue to operate for Critical Services thats a lot of what todays announcement is about, is stepping up our commitment to help effect getting intel technologies out to those who need it most. Bob, does this change the nature of the consumers relationship, and by the consumer i mean not just people at home but people at work as well, the relationship with the pc itself . I know for me personally, i use a lot of mobile devices, but a good old high powered laptop, desktop computer has become an essential tool during this time in a way that i might not have realized that it was day to day before do you think that the demand Going Forward to at least have a modern pc in reserve is going to be different yes, i do, jon. I think the pc has been an essential component of our everyday life for a long time, but our expectations is in this new normal, whether its access to technology 24 7, whether its at work or in the home, the needs of compute today is just at this particular time, i think is as intense as it has ever been the need to have one at your disposal to be always on, always connected, is increasingly important and our challenge and the need for us then is to ensure that were there for our customers and our customers customers so they have access to that technology. You are active in m a, you have billions of dollars that you invest as intel. Does this change the way that you invest and the technologies that you see as being key for the future you know, i think right now the last youve heard us talk quite a bit about the market that we see today, the market that is much bigger for intel than its ever been, the in a world where we characterize everything increasingly looks like a computer and again, whether its the network in a 5g world, whether its our connected devices, whether its in the office or working from home, whether its an automobile or whether its a factory, increasingly everything to us looks like a computer so the needs and the investments for us is weve expanded the market that were serving and investing across a multitude of architectures and platforms so that we can bring commute technology to more and more devices in an increasingly interconnected world. Finally from the position where intel sits and as you said youre all around the world, youre seen as essential in a lot of places, do you yet have a sense of what it is that youre going to tell governments in terms of advice, perhaps in terms of lobbying to put the markets where you operate in position to be in a better position should we face a crisis like this again . Yeah. I mean as you might imagine with a global footprint, not just in terms of where we sell our technology and deploy our technology, but where we make it and design it, were a very Global Company and therefore, to deliver our essential services today, it requires us to very proactively be dealing with all the governments where we have a role today so that everyone appreciates the importance of the essential technologies we provide. The commitment that we have to our employees to ensure that were deploying the best practices so that we can keep them safe while also delivering for our customers, so its the engagement with the governments, local, state, national, around the world has been imperative to keep our essential technologies available for our customers and for their customers. And i did press him on that last question, again, and he said, well really what we wants from governments is to be prepared and more engaged so the next time theres a crisis the world can respond quickly and he said he does not have great clarity into how demand might rebound but the pcs up front again, and, quote, the need for compute is as intense as it has ever been. Morgan, thanks to bob swan for joining us with that. A great interview thank you to bringing that to us