Restrictions, giving us clues as to how consumers may react durables down 14 june wti holding at 17 as energy is the only positive sector for the week a lot of discussion about 2,800, are we range bound where is the ceiling now markets giving all kinds of important clues. A lot of analysts, we follow them for a long time they wait and wait until theres a moment where they can go negative theres enough companies that have done well, i have every piece of research in front of me i dont have an upgrade. I have downgrade, downgrade, downgrade. Because the stocks have run, it gives these analysts a chance to say, uh, im so lucky. It went from 29,000 down to 18 it bounced back, and now i can get off and not look bad and thats the whole tone of this morning i find it curious. I think that in general the companies have done a pretty good job just they like to pull their forecast because who the heck knows. If dr. Gottlieb doesnt know what will happen, why should he expect these guys to know what will happen. Those who expect companies to pull guidance, i think thats a silly exercise gets you no where. Yeah. We do have the two upgrades that i saw were ebay and peloton. We will exercise in our basements. Theres a long wait for peloton. Ebay, that is an interesting piece. Its basically saying traditional retail, something david thought about it being laid to waste, so therefore, ebay, there was one for etsy, too. I have another one, traditional retail, no good. Et etsy, look at this, traditional retail, no good. Way fair we ought to do a squawk on the street dotcom, we can sell old clothes, we can do garage sales and well be recommended by these analysts yeah. Etsy is doing a big business on face masks ebay will have the new ceo taking over on monday. Wednesday they report earnings at ebay. It has had a resurgence given Current Conditions as we know, guys, old retail continues to be in very deep trouble. Its no surprise what we hear from jcpenney. Even in a normal environment we might not have been surprised to see the Company Preparing perhaps for the likes of bankruptcy its not alone in this given how difficult it is given how many retail establish the ments are e to do anything since they are closed one thing we have to think about with jcpenney is not the stock or bonds but the people who work there what will happen to them theres 43 Million People who work in retail restaurants what happens to those people they get unemployment claims su have be you have been a salesperson at jcpenney, what is your next move i dont know when we had a great economy, the answer is you make some calls. You go to craigslist now, i dont know what happens to someone laid off. David, theres a note today about ralph lauren, and whether people have changed tastes almost as if since this virus started that people dont even wear they dont wear ties when they go to work ralph lauren ties. Right theyre closed . Sorry. It is friday. You wear expensive shoes. Its not saturday, david. Its friday its casual friday no, im wearing shoes. I feel like you need shoes to have the feeling that you are at work im not in slippers or socks i am tieless today were all making decisions here, im with you even when we are fully back at the New York Stock Exchange on friday, i will be without a tie on friday. Im sorry. Do you think well ever go back yeah. You think, carl yes good. I miss it so much. I just miss it i miss the camaraderie we all do its its really beginning to wear, i think, on us emotionally. The way the three of us react to each other its got to get repaired, which, jim, is why this georgia experiment is so important elerian on squawk this morning saying well learn a lot in the next few days about how safe people feel i want to clarify for the confusion that i created, i wanted to see what happens in georgia, okay . Because i want to see. Its an experiment i wouldnt have done it with tattoo parlors or gyms you sweat and stuff. I do want to see what happens and i wouldnt approach it the way he is. The president i think first encouraged and then didnt i think all of us are thinking is there any hope here that we can return to something normal maybe hes been premature, but i think a lot of us just want to go to the store and, you know, kind of go to the store. Yeah. What is that . Used to go to the store all the time until the checker got covid, now im scared to go to the store. I know. I never went to the store, but im with you guys. Everybody wants to get back to work as quickly as possible. You know, it is that balance that is so difficult to determine at this point in terms of opening the economy and keeping the virus at bay, and or opening the economy and taking what comes because frankly the human suffering that will occur as a result of keeping this economy closed for a longer period of time will be greater than the suffering that occurs if, in fact, its not open at the same time, jim and carl, the question becomes what will Human Behavior be . Will people be willing to return to the activities they had previous to when covid was with us that remains unclear as i know you believe as well, perhaps, jim, true behavior will not return to what it was until there was a vaccine, which could be many months right maybe years how many restaurants can take half the tables out and still make money regardless how much the government gives its not going to happen thats a way of life now, yum brands, theres a positive stimulating return to growth ubs note. But thats the flip side of what happens to the regular restaurants. I had rich alison on last night from dominos he talked about he never wanted it to happen, but basically the destruction of regular pizza parlors, where we sit down and have a pizza, they cant compete because they cant have the number of tables physical distancing is in many ways the death nail of restaurants the way the malls problems are the death nail of retail this wasnt supposed to happen its just going to accelerate. Its bad we should take a listen to what rich told you last night on mad money about some of the logistical changes dominos has made in the wake of the pandemic weve taken 60 years worth of Standard Operating Procedures and rewritten most of them in six weeks. Contactless delivery is a big part of that the pizza pedestal is an innovation our team came up so when we bring you your food, we dont have to sit it on the ground or unclean surfaces we it put it on top of a recyclable pizza pedestal so you can take your food in a contactless way. You cant beat that i put boxes out for a full day i dont know who touched them, whatever dominos i have total faith, this is in their dna. The pizza pedestal is good i feel like i can bring it into my house, its not going to cause pandemonium. Thats why dpz is doing so well. Since april began, the numbers are good the stock sold off yesterday, but thats because its been up a lot. Dominos has figured out a way to make it so you dont have to have a pizza wait on your doorstep for 24 hours, which is not a great way to eat pizza kind of reminds me of World Wrestling david, wwe is up this morning on 60 jump in sales, but their ceo says it will take several years for live attendance to return to pre covid levels and needam saying companies are calling wwe for best practices on talent safety protocols these guys have been two to three live shows per week for years, and they have figured out in some ways how to keep their people safe. Chipotle sure has chipotle had that problem with airborne food, and they created another way to deal with how their people interact with customers, interact with food. And it happens to be the perfect way for the era of covid thats one of the reasons why theyre doing so incredibly well i think the stock can go to 1,000. They have it so again im thinking about places where if i go to them, im not worried, versus a lot of other places where i go to them and i feel like im injecting risk. So i think were in this era of whats risky and whats not. A lot of these things are what you never thought was risky before a lot of the companies that are small and mediumsized business they require crowds to do well the antithesis of what we can have right now is a crowd. Think of that, that place is crowded. That place is crowded. As soon as you hear its crowded, you cant go there. This is incredible its the inverse of what retail is about the inverse of what a restaurant is about its a terrible time thats true at the same time, jim, its interesting listening to mr. Allison at dominos and thinking about the amount of innovation that is going to take place at companies that are quickly adapting to what they believe will be the new behaviors adapted by the general population business will lead here. Unfortunately perhaps not small and mediumsized yet, though in certain areas they might be able to innovation is taking place it may result in lower Profit Margins for some period of time for all the Things Companies need to do, but theyll do them and they are beginning to already attack these problems as they perceive the world is what it will be like for a long period of time you are so right. But i know we have to go, but the airlines have not done a thing. Theyve not done anything. Everybody has to adapt i want to go on a think of something, gary kelly, dont just stand there and take it and as cowen says, its not just the airlines, its the airports people need to feel safe before they ever get to the gate and get on the airlines. Guys, well take a break covid distributors, theyre called airports. Well get to verizon, amex, capital one, google, boeing and more when we get back. The president talked about georgias reopening yesterday at the briefing take a listen. I know a lot about economists, the answer is they have no idea i think i have as good an idea as anybody i think our economy will start to pick up substantially as soon as the states get open thats happening as we speak, its actually very exciting. People are just just thrilled to see it. Our country has to get back to work they want to get back to work. You see that, whether its a demonstration or just in talking to people. They will go to get back to work and theyll get back to work very fast. Well talk to the head of equinox later on this morning, jim, who is not opening. We talked to another Restaurant Owner yesterday who is not opening in georgia so, its going to be up to the individual owners. I wonder what you would do right now if cuomo relaxed restrictions what would you do with your two restaurants . Were keeping both well keep both open the more expensive one in red hook, were not sure what the plan is yet. Ill try to have a big Cinco De Mayo at bar san miguel with margarita boxes out front. Well try to do a lot of takeout. We hope it can cover our costs i did not get a ppp loan, applied for it i dont want one now, people say oh, you applied for it im committed to reopening but the answer is no im worried about droplets, people not Wearing Masks everyone should have to wear a mask not for themselves but because of others. Until everybody has a protocol which does the best, we pull out the tables, i dont know how you do it. Well lose money i can guarantee that i also know that we believe there will be a vaccine within a year and a half. We want to be the restaurants that survive through that period i know thats a longerterm period than wall street. When youre running a restaurant, its six years for bar san miguel, i want to be the only place open on that block a year and a half from now ppp loan, yes, if i got it without it, i dont care i think you have to say im here to win, ill sacrifice 18 months if i can get through it. Thats what you have to do its too dangerous even this week, after roche, there was a Boston Consulting Group guest on squawk today saying vaccines are a fiveyear process, you do not believe that i dont i think j j is shortening that time i dont know exactly what were going to get from pfizer, but pfizers very much involved. Moderna started human trials the fastest ever was ebola, five years. But these companies who would have thought we would have an atomic bomb in the time we did who would have thought we cured peel polio in the time we did nobody im taking the other side of the trade, i think betting against alex gorsky now is a big mistake. Theyre building plants to be able to have billions of doses why would you spend 2 250 millin building plants if you had to wait five years . Maybe every one of those maybe pfizer are just idiots, j j is a fool. Im not betting against american science. Its been a suckers bet the chinese want to bet against us, fine im a believer that a year and a half from now well have something that makes it so you want to go to bar san miguel and go inside and have, okay, not a kron corona but a modello its inconceivable to imagine well be on lockdown for 18 months, two years, or some parts of the population are, which is why its so interesting and important to watch what happens in these states that do begin to open what the behaviors are of people and the willingness to go out and start to engage in Economic Activity which were sorely missing. See what theyre willing to do we come back to this time and again, jim there is certainly a greater hope that we will have antivirals available, not just the remdesivir, which remains very much uncertain in terms of whether its effective, but much earlier in chorus, something that would equate to taking tamiflu to make your symptoms of the flu so much easier to deal with yes then the question will become will people be willing to feel like, okay, im all right to go out. At the same time, the 21 rate that was cited by Governor Cuomo in new york yesterday in term the terms of people who have been exposed to the virus, thats seen as a positive thing, its not near herd immunity, its getting closer to it the virus will continue to mutate to a certain extent, but some believe it will become less harmful. Theres a number of avenues you can go down to feel positive coming back to the overall theme, guys, we know so little antibodies, can you get it again . Fall really bad. I have to tell you, theres going to be a class of people who feel more immune now than the rest of us if you get that antibody, you might risk going out to a restaurant ill go anywhere. Anywhere you guys want to go wherever all right well have Hans Vestberg joining us litteater verizon reported earnings today. It did change and lower guidance for the year as a result of the Current CrisisHans Vestberg is on the companys Conference Call now. He will join us in the second half of squawk on the street. We have mo cinba aer thworked lft so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. Markets trying to string together a few days of gains as data comes in from german business confidence, uk Business Sales were weak. Durable sales rewe weak, university of michigan at the top of the hour. Dont go anywhere. First up is this exquisite bowl of french onion dip. Im going to start the bidding at 5. Thank you, sir. Looking for 6. 6 over there do i hear 7 . 7 in the front 7 going once. Going twice. Sold to the onion lover in the front row next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowedout loaf of sourdough bread. Dont get mad get e trade and get more than just trading investing. Banking. Guidance. Welcome back to squawk on the street. Time for a mad dash. We will take you to the opening bell all right. Heres a hint. It has a 1 1. 2 trillion market value, the stock is down 6. 4 for the year over to you, jim david, one thing ive always loved about doing the mad dash is pretty much every quarter i talk about katie, my favorite analyst on apple shes at morgan stanley, she has a good point here. She goes its set up well. Apple is set up well what is she talking about . New product cycle, multiple 5g launches coming. Shell talk about she says something that people have to recognize. Apple can put a mid to high single digit Dividend Increase the companies that have been doing Dividend Increases are suddenly getting a lot more pe multiple juice than ones that cant. So i think thats going to factor in. Apple has a giant cash hoard apple has been cut number, cut number, cut number for ages from analysts i like this call i think katie will be very right. Its credit quality is better than that of the u. S. Government at this point. Yeah. Someone asked me the other day, why do you like j j so much . Name me somebody else that is aaa besides batteries. These companies are able to have a lot of cash on hand and generate a lot of cash and are a continued focus given the difficult times were in and that are coming still. We talked a lot about the companies that have been able to sure up Balance Sheets, however they can have done it. Apple did not have to worry about that going into the crisis theyre not pulling down any revolver these companies that pull down a revolver and cut their dividend. Like kohls. I never took you to kohls shopping no. I probably never will yeah. That gets back to the conversation we were having towards the top of the show with retail its not just jcpenney or Neiman Marcus or macys, lazard has a lot of real estate there the gap saying its current cash position may not be enough its a general issue throughout. Yeah. Liquidity, liquidity, liquidity versus apple, the most liquid company on earth yeah. I see constellation got some new financing, caterpillar in a new revol revolver then the loss provisions over at amex, 2. 6 billion, puts to shame the 800 million of a year ago. Yeah. It puts in perspective the stress that people are going to be under and expectations in terms of their ability to pay their bills, doesnt it . By the way, verizon again, we will talk to Hans Vestberg, taking a larger provision for bad accounts thats the world were going to be in. Have how many Million People 26 Million People without a job at this point . Obviously the benefits are okay right now. But the c