Online more Central Bank Action from japan helping fuel the bulls and despite all of that, oil plunging again, down more than 20 as we see one Energy Company file for brankruptcy. Ahead on todays show, were taking a deep dive on the path forward for retailers. That sector deals with the fallout from the lock down well speak with about the issues facing the industry and be joined by former macys ceo as Department Stores deal with their own challenges and bankruptcy concerns swirl around the sector were up 5 on the s p with 59 minutes left citigroup is up 8 still down 42 year to date. Lets focus on the big stories were watching today mike is is tracking the market moves. Meg has the latest mike, lets kick it off with you and the broader markets. After about two weeks of going sideways, the s p 500 gets a little bit of a boost today to basically the levels it saw at the post crash highs of ten days ago. Take a look at how it fits into the broader picture here 2874 is a number that we first saw january, late january of 2018 you essentially see right now, going back technical triggers around this area, but you have to say after twoweeks what a week big tech stocks held together today the laggards giving room take a look at the cumulative market breath. This is from b of a. Some are pointing it out, not quite confirming an extremely bullish picture. It doesnt get in the way of a further rally, but the breath indicators have lagged a bit its changed today a much broader rally today well see if that continues. But not an accident that investors have been sticking to the high ground, the very, very large companies, the more stable ambulance sheets take a look at this from morgan stanley. It shows you the trajectory. Top five holding up the best then mid cap then small cap. So its not arbitrary. Not just taste or preference its because these are considered to be to know, the companies that can hold together better in a downturn now the question is do we see some rotation towards cyclicals and smaller stocks if we get clarity on the macro one day is probably not enough to make the determination, but well be watching it. And clarity on earnings with a lot of big leaders set to report this week what sort of information will you will looking for to confirm whether they are as recession proof or stronlg Balance Sheet as investors think they are . I think when it comes to the largest tech companies, the stability is presumed. The fact they come through this okay is probably not going to be news, but their spending plans, their cap ex plans and their expectations for when advertising volumes and thinlgs normalize are probably going to be what were looking for. Because these companies have the cash, the strong balances. T not as if were worrying about if they can cover themselves over this period its how aggressive they want to be on the spending side and what theyre see ng terms of in demand and what theyre willing to prejekt, basically. Yeah, what their clients are doing. Mike, well see you in a bit turning now to the race for a treatment and some new data today from sanofi and regeneron. It was the first really controlled Clinical Trial data weve gotten to see in a drug for covid19 and its a bit of a mixeded bag. Regeneron and sanofi were tested kevzara to try to treat the severe lung problems in patients what they found is that critical patients, those on ventilators or high oxygen support, there was a potential benefit but no benefit of the drug to patients characterized as severe, so still very sick, but not as sick as those critical patients as a result, theyre continuing the phase three larger part of the study only in critical patients in the highest dose of f the drug reasonedand expectint by june. This is a separate program we talked with the chief scientific officer of regeneron today. He said they are still on track to start human Clinical Trials of that drug in june and he told us he has more confidence in that program because of their success in ebola. Heres what he said. We set the record for ebola in terms of going from stating the program to Clinical Trials in nine months for the coronavirus program, were quoing to break that were going to be in Clinical Trials by june, which will be five months. So a lot of hope meg, just give me some headlines on states that are continuing to announce plans about reopening. Ohio for instance, just out. Governor dewine taking a very different root than georgia. Hes so much more caution. May 4th, theyre going open construction may 12th, theyre going to open retail, but not restaurants and not salons no date for those yet. Companies and people can do special distancing i wonder what the experts are saying a, about georgia and how that experiment has gone i know its too early to see results, but b, on how theyre advising these states to reopen because were going in Different Directions all over the country. Yeah. I think the experts are nervous that as states reopen, we are going to see an increase in cases again. Particularly if there isnt the adequate testing and tracing in place. Ohio and georgia are not the highest of states in terms of doing the most per capita testing. New york is pretty high up the second highest state after rhode island, which is a much smaller state and they are talking about starting to reopen parts of the state may 15th. But there are major questions about whether there will be the testing and tracing in place to mitigate any of the potential spread of disease that we see as people start to move around more thanks so much. Were also tracking two stories in the transport sector. And both stocks are moving higher in relationship the news regard iing the divot program. General motors is suspending, both being suspended as cbs of meeting that are involved with a 3. 6 billi 3. 6 billion credit li been extended to take a look at shares, this Company Reports its q1 results next week speaking of dividends that have been suspended, boeing did that some time ago, but today during the companys virtual annual meeting, dave calhoun said it is likely going to be years before they reinstate that dividend because theyre going to be focused on a, liquidity and paying down their debts. Remember, boeing is reporting its qi results before the bell on wednesday and a big focus, guy ps, will be will be the state of boeings finances in terms of where they are with liquidity and plans to borrow more to that point, phil, clearly, those headlines though were flashed this morning in terms of a down beat outlook for the industry as a whole. Not necessarily that new given all the updates weve had from airlines so how big a swing fakih forctot and where do we stand on that and necessary government help or not . Right well thats the big question, wilf, and thats really going to be the determining factor in terms of whether or not we see the stock say stay in this range where its been in between i dont know, 130 and 140, 145 or does it move higher or lower that comes down to what they decide to do when it comes to asking for aid from the Treasury Department theres an application due by may 1st, theres a category that boeing falls within and the its the companies that are essential to the governments or the national security. That would be one area where boeing would potentially apply for government aid so a lot of these questions will be answered on wednesday in terms of liquidity and what the Company Plans to do, but that question regarding the Treasury Department, thats the big one there. Thanks so much. Boeing up a percent, 1. 2 or so. The broader markets up 1. 6 as we stand not too far from the session highs. After the break, the path forward for retail well speak with Manny Chirico about the challenges facing the sector and longterm consumer changes that might come. Well be back in a couple of minutes. So were working 24 7 toected maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. Adidas out with earnings reporting their First Quarter profits fell more than 90 due to closures. I spoke to the ceo this morning who said covid19 could prove to be good ultimately for their business in the long run the very large stores,s thats where youre going to see the profound change to online. We will continue to emerge on retail landscape and what i think will happen for the sporting gods industry in the median term, theres no doubt that the coronavirus has made people think much more about their health and how much, how Healthy Lifestyle you live and then well eventually be an upside for us. Thats number one. Number two, thats more than median term. Two, if youve been confine today a small space for six, eight and ten weeks, i think theres nothing else you want more than to just go out and move walk, run, doing something i think sporting gods will they eventually benefit from the consequences of the coronavirus. That was in response to a question about the retail winners and losers after this pandemic he also told me they are seeing a huge u uptick in sales for things like slides those are the sandals you wear out to the pool with so many people working from home and wanting to say comfortable he says they are prepared for sports to make a comeback without fans, which means theyll sell less fan gear, but equipment wont be impacted. They expect sales to fall 40 this Current Quarter it would fall a lot more he said if not for e commerce, which is growing rapidly. China and korea, which are big Growth Markets and of course those sales of the adulets and we always talk b about nikes direct to consumer offering and how much theyve put behind that. Where does that lead our stand on that . Is that a key deciding factor for which of these sports giants fairs best during the virus . Nike certainly has an edge when it comes to direct to consumer and e commerce because thats been a huge focus they dont break out the specific sales for adidas, but 13 of their overall business was online thats obviously grown to a much bigger chunk now because of places like china and what theyre see iing in europe and h u. S. If you look at stocks over the last three months, adidas is down about 30 nike is down about 12 to 13 so it gives you a sense of who the market thinks can handle this better. Interesting were going to discuss this topic more broadly now manny churico joining us now welcome to the closing bell. Thank you very much good to be here. I guess big picture question r for you and your brands, we were just touching on with sara on adidas, how important is it during these types of environments to have a direct to Consumer Online presence and have you had a big enough one to off set the declines youre seeing in bricks and mortar sales . Its critical to stay connected with the consumer. Both emotionally and through doing additional business. All business runs about 12 to 13 of it is direct to Consumer Online obviously in this environment, thats significantly faster and our Online Business is up depending on region anywhere from 30 to 70 so were seeing good reaction were engaging with our consumers, but obviously brick and mor ttar is still representn 80 of our business. Its a manl head wind for us right now. Theres a big article today in the Washington Post about how some of these workers are question iing the judgment of t companies which are putting them to work going into stores to get inventory and shipping items out to consumers just so that they can get a deal online and retail can survive when its actually not so safe potentially for them to be working in this environment. How do you feel about that and how do you manage those kinds of risky decisions right now . That is a challenge right now, its a balancing act. Our stores in the United States areall closed as of today. The you move the europe, probably 90 of the stores are closed today were trying to make good judgments working with local, the local states, the individual countries to really understand how theyre moving forward then weve put in guidelines, protocols the make it as safe as b possible through protective gear, masks, deep cleansing. We do recognize they are taking some level of risk as they engage in this transaction were leaving it up to our associates if theyd like to come back and make those judgments, but clearly, its, its a balancing act as we go forward. Manny, whats your expectation for how eager consumers will be b to come back and spend when theyre allowed to do you think it will take one year to get back to 2019 levels of sales or much longer . My best experience is asia particularly the china business. Those countries have reopened and were see store sales down somewhere in the neighborhood of 30 . But our Online Business up 60 to 70 . So that balance gives us what were returning today probably down you know, 20 to 25 overall. Week over week, we continue to see growth over the prior week so its actually giving us, its doing much better than we anticipated coming back. My expectation in the United States is i think its going to take somewhere between nine to 12 months before we see retail trends at brick and mortar march retail sales were looking at it. Clothing and accessory, down 50 , mann clothing with such a hot category even before we went into this pandemic and this crisis whats it going to take to get consumers excited again about buying this category march results were clearly impacted by the virus. I think if you looked at the february results, they would have been down very low single digit kind of declines overall i think thats one of the challenges that the industry is dealing with is the excitement around it. Its clearly winners and losers. We had a pvh had a r very, very strong Fourth Quarter between our calvin klein and tommie hill figger businesses, but its a shared game right now and this virus u is only going to put more pressure on brick and mortar retail. If we were sit iting here talki three or four months ago, i would have been talk iing to you about theres too many stores in the United States to begin with and over the next five to six year, i would imagine 20 to 30 of our stores need to close down in the United States i still feel that way, but now were talking about something closer to two years and were going to see a significant closure of stores as we go forward. I think the winners will be the companies and brands invested online investing in communicating with their consumer and have positioned themselves well as theyve gone forward but clearly, were going into a rocky time as we go forward. Youve got quite a good spread of price points within your brands. Do you expect the balance between expensive and more affordable brands also for 2020 and 2021 you know, i havent seen that at the top end of the spectrum when we talk about luxury, real premium, thats been probably the strongest sector of the mains weve seen overall and our top brands, calvin and tommy, have performed there but i will say my experience with recessions has been that consumers do tend to trade down and that National Brands that have a small appeal to consume ers tend to do well in those kinds of categories. So i think its really going to depend on a brand to brand basis and if youre positioned well, youll do well but i think youre clearly come coming back into may june time frame. Theres going to be plenty of apparel thats going to be on sale and be very much a high discount promotional environment and a difficult environment for most retailers as they go back i think what were seeing as we go into the fall season is everyone is buying very conservatively concerned about consumer demand. But also concern ed about a second wave or a second pandemic god forbid theres a shutdown in the Fourth Quarter you could only imagine what they would that would mean as we were in the holiday selling season if business were to shutdown similar to what we saw in march and april. So clearly, thats something were all trying to balance against as we go forward manny, finally, we know you did test president obaositive f9 you look and sound well. Give us an update on how youre doing and whether that happening to you has impacted the way youve run the business for this crisis well first, i feel great. My family feels great. Ive definitely had it. My wife we believe has it. Has had it she hasnt been tested we were one of the lucky ones. We had very, very mild symptoms and hopefully, we have the antibodies it has you know, it gives you a perspective. When i found out about it, you could imagine i was completely shocked and it does put, puts life in perspective. It does scare you a bit and hopefully, it will make me a better leader for our associates here that i have an understanding of what people are going to be going through and the fears and risks theyre taking hopefully that will make me a better leader as we go forward manny, thank you very much. My pleasure ceo of pvh. Weve got about less than 40 minutes to go. 37 minutes before the closing bell take a look at stocks. Weve got a strong rally on our hands, in the sense that every sector is higher in the s p. Its up 1. 7 . Were building strength here the dows up 414 points coming off a week last week where we ended lower, breaking the twoweek win streak. Still ahead, the virus hunt hunter is back on the show well speak with dr. Lipkin about the latest developments in the race to treat coronavirus and whether he thinks its wise the begin reeng e opintheconomy like many states are doing but inside. Theres advanced research, modeling and refinement. Constructing funds that dont simply follow an index. But explore new terrain. Helping you fill portfolio gaps. Connect to client goals. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. It started when fitbit showed her. How to burn more in less time. Which led to less stress. More changes. And the confidence to follow her dreams. Introducing active zone minutes on charge 4. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. The latest round of Small Business funding kicking in today with some note changes from the first tehran ch of stimulus, but also running into familiar roadblocks. Hi, kate hi, sara. Multiple sources telling cnbc that within moments of opening up this morpg, the website the banks use to submit these Small Business loans for approval started having glitches and even some outages marco rubio acknowledging the issues in a twitter video saying the system is pacing applications to prevent any one lender from submitting too many applications per hour. Also, the government as you mentioned out with warnings last week seeming to limit virus aid to larnger companies who applied the time around saying that borrowers must certificay this crisis makes the loan necessary and they cant access other forms of capital friday guidance also said that both hedge funds and private equity firms arent eligible for this aid questions do remain about how quickly this 310 billion might run out this time. Remember it took less than two weeks for the first round to be tapped out back to you. I mean i can concur with what you said that the first 30 to 45 minutes at least the whole system was down. Since then, it might well have been up again, but working patchy at best and fairly slowly you and i have discussed this the last three or four weeks whether its the sba or banks trying to point the blame at each other this was the system created by the government, but theres far too much demand for it relative to simply and that really has to be the focus of the blame even if today its more the banks fault r or whatever it might be. Until we get to the end of this, were likely to have to see another inkrecrease in the amout the government has allocated because the demand is just way bigger than the supply again yeah, absolutely true and weve seen estimates as high as nearly 2 trillion for what might be needed to help all these Small Businesses i think thats why were seeing the government late last week start putting out this new guidance to try and limit the companies and types of businesses that do apply for this Second Time Around and also telling those big companies, particularly publicly traded ones with other forms of access to capital, that they have until may 7th to return it and were see iinging that happen more an more something well continue to track. Kate, thanks so much. Weve got 31 minutes left of the session. Up by 1. 6 on the dow. All of the sectors in the s p are higher led by the banks. Likes of citigroup up about 8 , so a big rebound in some of the biggest underperformers. Citi still down about 2 , which tells that story real estate, industrials also doing well Consumer Staples and communications are at the bottom of the pile. Here are the key things driving the action more states s preparing to eas stay at 40e78 orders plus, more stimulus goes online. More Central Bank Action from japan and despite this, oil plunging, down more than 20 today as we see one Energy Company file for bankruptcy. Time now to get a coronavirus update with frank holland. Frank. Good afternoon. Heres the latest. Ohio governor says his state es economy will start reopening this friday. Some nonessential surgeries will be allowed to take place and dentists and vets can resume working. Next monday, manufacturing, construction and offices will be allowed to reopen, though telecommuting is preferred verizon is extending its pledge to not disconnect customers or charge late fees until june 30th last week, a group of attorney generals general asked to extend to august 11th and a new study shows nicotine may help prevent coronavirus infection. Researchers studied 500 covid19 patients and found far fewer smokers in the group than the general population researchers say the virus interacts with receptors and nicotine appears to act like a blocker, however, all doctors agree, smoking carries additional risk in covid19 cases and smoking or nicotine risk is not a proven protection to combat covid19 as always, for more, head to cnbc. Com thanks so much. Still ahead, Department Store downfall well ask Terry Lundgren whether major big box brands can survive. Bonds moving higher. Steepening at the curve today. The ten year now up 0. 66 . A big reason why the banks are up today well be back in a couple of minutes. About 26 minutes left until the closing bell were higher across the board. S p up 106 . Session high is just above 400 up next, scott black is buying stocks ad e mithturbulence and hes sharing his Shopping List with us. Hell join us to reveal those names right after the break. We hope you find our Digital Solutions helpful to bank safely from home. Deposit a check with your phone or tablet. Check balances, pay bills, transfer money and more. Send money to people you know and trust with zelle. Stay safe. Stay home. Together, well get through this. Pnc bank dont get mad. Get e trade, dawg. Stogs rallying today in the first fourday win streak. Financials surging up 3. 7 joining us by phone is scott black, thanks for phoning in noted Value Investor like yourself, how coyou, good to have you how do you value stocks in this environment where theres little clarity on earnings . Theyre not providing guidance all the earnings theyve had in their sharing are steal and sta and we dont know when the economy reopens or what that looks like youre right. Starting with the s p earnings, which is impossible to forecast bottom up, but even with corporations, what you have to look at is a normalized earni i and then weve adjusted downward to give us a margin of safety. But it was a lot easier buying them off the bottom the week of march 23rd and april 1st a lot of the companies that i put on my list for you have had substantial moves. I want to point out that caveat. And scott, maybe well get to some of those specific names in a moment, but before we do, what are some of the key broad factors criteria that you have been looking for in the last couple of months thats led you to some of those choices what type of companies are the best to be buying . Firstly, you Want Companies with leadership positions within their respective sector. Secondly, we Like Companies to generate tons of flee cash and many cases, they generate more than dollar for r dollar and net income so you pretty much have a bulletproof Balance Sheet and even though we used lowered estimates, we still bought them between eight, nine and maybe 13. 5 times diminished earnings per share we werent out chasing high flyers amazon and microsoft are great companies, but we still as a valued player, cant make them go out and buy those im looking at list. Medtronic, novartis, merck health care is a big theme is that because some of those companies are on the front lines and fighting this pandemic or is is it something longer term . No, youre exactly right but theyre good businesses to begin with before this, we owned lab corps and Bristol Myers e but weve added. For example, medtronic on the stock now is you know over high, weve locked that around 90. Beside the tact that theyve got the ventilator business, theyre really strong and pace making. They invented the pacemaker. What they call cardiac rhythm. The other ones are are all broadbased like novartis, its a great company. Theyre great in onkole ji, but other things they have a new drug which is a billion dollar plus drug and they have another one called meson for multiple sclerosis same with merck. Obviously djx, which is quest, like lab corps, is going to benefit from all the teing thats going to come we bought that stock around 82. Had about 6 plus an earning power to 12 pe this stock is run back up. But obviously, theyre even bigger than lab corp. But the two dominant shares. The thing everybody said on tv was we knead more testing before we can open this economy i guess a lot of people can you said why you picked some of those names. Indeed, health care is one of the best if not the best year to date what about any names youve picked out that have sat within the worst performing sectors, perhaps the likes of the financials or any other sectors like that . Okay, so when the financials, there were two companies that never sold at rp one is Blackrock Larry finckes company the stock got down to about 422, its rallied back up, but they have a dominant share as you know and etfs. The other one is blockstone group. Steve schwartzmans company. The stock came off from a high of 65. We bought it in the mid 40s. Probably the best private equity firm in the world, but theyre really a Real Estate Firm with little exposure to retail. Its a sound company and it was a Good Opportunity and plus i think it has about a 5 yield. They could cut the dividend, but its a power house type of company. The Financial Service space. The Market Action lately has been dominated by some of these megacap names. Walmart, p and g, they were bets in the eyes of investors, where do you stand on whether you could be in stocks like that r or in mid caps, which have f yet to catch up. Most companies probably have sustainable earning power. Thats why if you look at the russell 1000 growth, it was down 4 through the end of last friday year to date because the microsofts, apple, those companies arent really good, strong franchises with quite a bit of sustainable earning power. Got in on apple a couple of years ago when the stock was out of favor the other one on the list we own was intel. Which is basically you know down zero percent on the year we bought merck. But for the most part, those are good quality companies, just too high multiples we cant justify buying google or Johnson Johnson or verizon and mastercard theyre really great businesses, but theyre too high multiple for us systematically, maul sand mid cap stocks have lagged here and i think its going because one, nobody knows if a lot of them have to be b in sick cyclical as like manufacturing nobody knows when theyre going to return to business and nobody knows how bulletproof their businesses may be over the next three to six months. And so you know, systemically which i pointed out when i sent you the documents, the small cap and mid cap value have done very poorly going into today. The 2000 value is down to 33 . 100 value is down 31 so i think people, theres a plight to safety here and the valuations are stretched, it makes a lot of sense gien whats going on with the coronavirus pandemic to that point, scott, i know you pick individual b stocks and weve gone through your how you do that, but if those small cap values are down 30 year to date and nasdaq is only down 2 year to date, which will see the bigger correction to the middle ground over the rest of 2020 do you think . I dont know. I do think it may take another six to nine months before the economy starts to really rally im not as bullish as a lot of people on tv but i think people are going to be frightened and certainly not going to travel. Not going to go to restaurants or or take airplanes yet to destinations so i think its going to be a slow recovery. There are some median cap stocks, which we like. We bought. I mentioned some like lumentum been up year over year over year, quarter over quarter another we used to own, we bought it back, check point. A leader in cybersecurity. Plus, they have 27 a share in net cash sitting on the Balance Sheet. So these are very good franchises specific niches in technology, the median cap i think those are fine still in this environment thanks for joining us great to see you as always thank you and stay healthy. Take care. You, too. Scott black there. This is the last commercial were going to take before we head into the close. Up next, uninterrupted kovrnl of the final minutes of trade when we take you inside the market zone were up session highs with 15 minutes left of the session. You can always watch or listen to us live on the go on the cnbc app. Well be right back. Low sugar. Tastes great high protein. Low sugar. So good. High protein. Low sugar. Mmm, birthday cake. Pure protein. 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But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Commercial free coverage of the action going into the close. Mike is here to break down these crucial moments of the trading day and today, weve got lindsey bell with us as well we are up 1. 7 on the dow or 410 points, which is pretty near the is session highs stocks of course trading higher today. Off the back of some sideways trade in recent weeks. More states have continued to roll out reopening plans Texas Governor abbott Just Announced the states stay at home order will end on april 30st, but not everyone is optimistic there are other restrictions so certain businesses will open first on may 1st more in two weeks if infection rates tame although jeff called in earlier and wasnt so optimistic about these reopenings i think the retest of the low is plausible and those markets are looking quite tired these days and the sentiment shifts should have investors concerned. I mean i was watching a segment on cnbc earlier this morning was talk iing about how people lookg for aggressive opportunities the time for aggressive opportunities were march 23rd. Not april 27th i guess the theme from mr. Gundlach he was skeptical and that these reopenings will go as smoothly as perhaps the levels on the s p 500 are suggesting. Right a plausible case. I think people look through the history of these moves theres a base building process. Theres a euphoric rally then reality setting in, but hard to know if shs going to be scripted so perfectly first of all, its not clear to me most people are bullish and looking for this market to just carry on higher as weve seen to imply right there, but you know, its a wait and see because the s p 500 in the last couple of weeks has been held together as youve seen in periods from to 16 to 2019 by those big defensive quality Growth Stocks and today, everyone said whats going to happen if they take a breathe eer. They have. Banks are up 7 . Industrials up 3. 5 . Could be a one day thing but this is the absolute best Case Scenario for some kind of rotation happening if the market starts to price any sooner versus later a lot of this is is hope and anticipation as opposed to economic fundamentals now. So sounds like the details from texas will be phase one reopening on friday, which does include restaurants and movie theatres and retail stores, but only at 25 capacity if that works, theyll expand it to 50 on may 18th then go from there. Lindsey, whats the market prying in as far as how these state recoveries are going to look and eventually corp. P rat ayeshaings is. I think the market says that investors are looking at this as an optimistic move that were starting to see some opening here the question though really lies in how is the consumer going to react . Are they going to want to go back to the restaurants or hair salons and to take on some of these services they havent had access to in a while and a lot of speculation is that we need a treatment or a vaccine to make consumers feel more comfortable with doing that and then the second question is these corporations or Small Businesses that have working on their sh t shelter in place order for going on seven weeks now, are they going to be b able to reopen in a manner thats going to benefit them from a profitability perspective. Have they gotten an sba loan we know theres been b trouble with that along the lines. So farce what jeffrey has said, i can understand his trepidation to what the movements that we have seen in the market. We dont know whthe 26 Million People that have already lost their jobs are going to get back to work. We dont know if bigger corporations that have been operating under significant drop off and demand in sales environment are going to have to eventually let people go because of that drop off in demand and sales if it doesnt come back quick enough so theres still to me, a big lack of clarity with regards to how the economy reopens and how we get back on our feet theres also this problem that he brought up, which ive heard this stuff before, which is people making more money off the new expanded Unemployment Benefits as part of the c. A. R. E. S. Act than they would have if their regular jobs and what thats going to cost in the long run in terms of employment and hiring moving on though, despite growing talk of reopening the economy, Companies Continue to pull guidance this earnings season basically seeing every company doing that pointing to the uncertain path forward to recovery. Goldman sachs out with a new note saying three suggested strategies they have for inv investors trying to navigate this environment include avoid stocks with Small Business exposure buy quality at a reasonable price and buy goods producing cyclicals. Goldman points to regeneron, facebook, nvidia and Lockheed Martin in the absence of any real earnings, which is traditionally what has been working, not working will continue in that fashion for a while now. Because the market is already kind of clung to those as abandoned bad Balance Sheets and exposure to you know in person ret retail its a call to say more of the same and i dont know if we have enough information to know if weve been in this mode for a while or if its going to be a brief period where we have this retrenchment and then the market going to shoot ahead and start giving efb a mulligan for the next two quarters and look towards a resurgence im not saying its easy to handichand or the one or the other, but you have to know were making a bet on the kind of environment were going to be in if you stick with the strong ambulance sheets. That call would have been the one to make a few weeks back maybe it will still be right, but certainly r already p performing in that way over the last couple of weeks now apple reportedly delaying production of new Iphone Models. Josh has the details hi, josh the journal is now reporting that apple does indeed still plan to release four new Iphone Models later this week but is now pushing back a production ramp of those by a month. A key part of the story that those new models are still on the way, so whats the timetable for investors to watch bernsteins says that new phone does need to get released in time for the Holiday Season because that is the largest quarter for iphone sales every year beyond that, we would risk impacting estimates and complicating a bull thesis apple declined comment to cnbc thanks for that mike, i do find this part of the debate fascinating when you consider so much of apples run up last year was about this 5g super cycle, which has been delayed significantly by at least a couple of quarters, perhaps by more and yet were not too far from the all time highs. Not too far it still looks a little bit like the s p, it has a steep run up this year that might be hard to scale again. The other reason it ran up this year is this perception that the upgrade cycle had been smoothed out. Than if you had this slowdown. So its kichbd an interesting test for just in general, this idea that the very elite megacap stocks everyone gets credit for being predictable to be that way. Lets hit oil because its plunging again today as coronavirus fears continue to weigh on demand for crude. June wti fall iing nearly 25 settled today at 1278 a barrel the drop in oil demand leading Diamond Offshore drilling to file for bankruptcy protection over the weekend the company citing between saudi arabia and russia as well as falling demand for its services. Shares falling 60 in extended trade on the announcement before being halted premarket it has yet to resume trading the Energy Stocks are higher today. As a sector in the s p 500 they started the day lower, high r r now and havent been hit as hard as the underlying xh commodity. What explains that if you look back at 2014 to 2016 where we saw a big drop off in oil over the almost two year period, you did see the Energy Stocks fair better than the price of oil that doesnt mean thats whats going to happen this time around you look at these companies. Oils not expected to get back to 25 a barrel at least on current Contract Prices and a lot of these have a significant amount of debt with 11 of the high yield market within the Energy Sector. I think that you need to just get into the Energy Sector tas tough time to get into Energy Stocks when oil prices are this low its always easier to rebound off of deep low levels mike, more on the internals today, which youve been aisayig look strong. They have been strong today in fact, building strength throughout the day, up versus down volume. Above 80 . Its better than where we start the day. Even though some big stocks will be mentioned mostly nasdaq stocks are doing that as we know, the big waitings have helped the overall market, but there you have a day where you have mean reversion. The average stock doing better than large caps and with this and the new highs, the volatile index is receiving again its getting to a more normal structure, but still elevated. Its not like that kind of a shot, but its still at this point moving in the right direction. Mike, thanks for that weve got just over one minutes left just off the session highs, which is 418 points higher, still up by 380. 6 nasdaq up 1. 1 russell leads the charge today up 4 . The regional banks doing well. S p regional banks up 7. 3 thats within the russell, but the general theme as mikes alluded to, things that have suffered most are rebounding the most today and that includes the Energy Sector being higher within the s p by 2 despite the fact oil prices are plunge iing once again an enkournging sign in the midst of a commodity volatility. Weve got a dollar softening today. Its down a third of a percent and the dxy still above 100. But all sectors are higher led higher by financials up 3. 6 banks within the Financials Group doing well up 5. 6 . Real estate, industrials, the other two sectors at the top all 11 higher. Stapf ls is at the bottom, but higher itself. We are up by 1. 5 on the s p 500 and the dow, nasdaq up 1. 1 and russell closing just shy of a 4 gain today sara strong session, strong finish welcome, everyone. Take a look at how we finished up the day on wall street. The dow surging 363 points off the session highs which came in the final half hour of trade r or so, but up 1. 5 for the day s p 500 gaining about 1. 5 all is sectors were higher financials were in the lead for a change in pace nasdaq also saw some strong gains. Technology did well. 1. 1 even though Communication Services was not at the top of the groups in terms of the best performers today and the russell 2000 index of small caps very strong rebound for this group. Up 4 today after its been lagging pretty much all year long this hour, well ask Terry Lundgren whether Department Stores will be b able to survive the coronavirus shutdown and President Trump set to meet with Retail Industry ceos at the white house this hour. Well monitor that and bring you any news as soon as it begins. Joining us to talk about the market today, chief investment strategist at Capital Wealth Planning and still with us, lindsey bell, chief investment strategist at alley invest first to you, mike, what we saw for the market, seems like just more talk of reopening whether its state by state or country by country with germany for instance, vw opening a manufacturing plant there in italy, also preparing reopen yeah. I was going to say just enough moment along those fronts to keep investors attention. I think pulled in that direction, the idea of when things will reopen and maybe we can pull it to the sooner side of the spectrum versus rather than laterer also, just a general relaxation. Credit did okay and a sbeez effect where some of the recent winners sold off so boosted the indetection to dex to a new high for this phase and see if theres follow through or if theres some kind of month end action that might change jeff, what are your models telling us as to whether weve rebounded too quickly or that we could retest the lows on the s p 500 . I dont think were going to retest the lows. Our models called a signal in mid january. They called the buy signal in mid march. Theyre still on a buy signal. They think the market trades higher into mid to late may then w were in for a rough spot for a few months according to how they read right now so quit buying things right now. Were having a pretty good year on the upside. But i think once you get into mid to late march. Mid to late may is quite for those that were looking through the potential gains in the next couple of weeks, how rough will it get once we get to that rough spot . I dont know. They dont really tell me you know what kind of downside were going to see i dont think it will be much more than 10 . But they say its going to be a pretty rough spot between late may into september, october. Lets get an update of what weve seen the markets at least today and of late. Bob has the big moves. I think the most remarkable thing i saw is something i b havent seen in a long time. We had a 1. 6 advance in the s p 500 and not a single faang stock was up today none of them and theres essentially six that i do if you include mocicrosoft so microsoft was down on the day. S p up, but microsoft down that doesnt happen very often and of course microsoft has began gained practicely all its loss the same with apple. Theyre down on the day and the s p 500 up 1. 6 . By the way, same with the other ones out there netflix was down amazon, facebook also down on the day this suggests somewhat broader leadership thats a very, very good sign. It was a restart of the economy day. We saw hertz moving on the upside and all the apparel makers for example, chicos had a great day. Essentially near a multiyear low, but responded to the hopes for restarting the economy finally, i noted last week that we saw very light volume, but didnt see a will the of volatility dropping. The vix had been relatively elevated last couple of tas, thats not true the vix is resuming its down trend here sitting at the lowest levels since march 4th guys, back to you. Bob, thank you. And you know ive been beating the drum on these treatments and how we have to watch all of these companies and not just gilead because so many, american and international companies, have been working on treatments. Cnbc has a new great tool for how to do that they have this index testing and treatment index and a lot of names in there not just the big ones like j j and roche. But names like fugi film, abbott labs, regeneron, moderna so this index has been moving up lately and whats different is that a few weeks ago during the crash of the market, it was moving up in an inverse rate to the market in other words, people were hiding out in some of these names because they thought they could ride this out. Well now its moving tick for tick higher with the market. According to a new cnbc. Com article and that shows you that the hope around the treatments and the hope around the testing capability which continues to improve in this country, is driving the entire market so for some scratching their head wondering why is the market going up every day if the economy is looking worse and worse and nobody knows if its going to rebound, these testing and treatment capabilities and innovations were getting from these companies are certainly providing some of that hope and optimism just wanted to put that out there as we constantly talk about the why. R for sure. And i think its great to point it out everyone should check it out because its a great basket of some of the xaeps we focus on each day, mike, the big question when you look at the basket relative to the s p 500 year the date and you see already a dramatic outperformance from that grouping of stocks, the question is how much bottom line profit of these Companies Going to be allowed to make from these products that have a public utility in the median term and whats priced in perhaps to that 80 relative outperformance weve seen thats the correct question and also even beyond what theyre going to be able to earn on this. Its not, lets remember, this general area of medicine and pharmaceuticals is not considered to be a thriving profit center. Its also more about investor positioning. If things start to feel and look better and the story changes from when will we have a streemt treatment or cure just the economy getting back to Something Like normal trk moneys going to flow out of these places its hiding in. Doesnt mean they go back to where they were before but i think thats the big calculus right now. How much do we want bet on the shutdown themes and how much do you want to try and figure whats going to come next. Well, lets talk about whats going to come next andrew cuomo planning to lift restrictions in some parts of the state on may 15th. But more testing is one of the requirements to reach that goal. Meg has the latest on that front. Meg. Hey, sara well, new york has really started increasing its testing even in just the last week its now at threshold averaging about 138 tests per 100,000 People Per Day we use that metric specifically because a harvard study recently suggested that states need to be at a threshold of 152 on that metric in order to start safely reopening. The only state there is rhode island which of course is the smallest state. New jersey is down at 84 on that right now. But new york has started increasing its capacity and Governor Cuomo over the weekend extending the accessibility of testing. Now allowing all 5,000 pharmacies in the state to begin offering testing and also expanding the criteria for testing to allow all Front Line Health Care workers, First Responders and essential employees to get tests even if they dont have symptoms now separately, the state is doing widespread Antibody Testing or a study of Antibody Testing and they just gave the second round of results. For the entire state, about 15 seem to have antibodies to the virus. In new york city, thats down 25 . About 14 in long island and 15 in westchester so were going to continue to see these results from new york for that 25 number pretty high. Its high, but can we trust it everything weve heard on those Antibody Tests is sort of mixed as it relates to how accurate they are dr. Birx from the White House Task force yesterday on meet the press said were still waiting on a big breakthrough in the antigen testing so how do we read that data from new york so the new york testing is being done at the Wadsworth Lab b so they did give information about the specificity and people will question how many false positives and negatives are you going the see. Those were bigger questions for the tests done in california because they were using commercial Antibody Tests. The other major question about these antibody studies is the slek bias. They were doing these in Grocery Stores and places in public and some people criticized that methodology saying well, the people who are going to walk up to Something Like that are people who think they might have had covid19 and want to see if they have the antibodies, so there are questions about the methodologies here, but its a strikingly large number. Meg, when might we have a definitive answer as to whether having antibodies is the key Going Forward . Still questions as to whether it really makes you immune or not thats such an important question and studies are ongoing. We heard the World Health Organization over the weekend warning you cant think about antibodies as an immunity passport, but the conventional wisdom about viruses is that you have some kind of immunity after you become infected and that is expected to be the case here from efb i talked to about this. We will need more information from studies to determine how long that immunity lasts meg, thank you. Just want to pivot back to the overall market lindsey, another piece of news happened that could be interpreted as bullish that was delta went to the bond markets and were able to get a pretty big cash infusion turns out they raised about 5 billion. They were set to raise 3 billion. Yes, they had to pay a high price for five year debt but the fact that there was so much demand for deltas debt, really speaks to the fact the credit market is getting back back to a healthier place. How do you interpret that . The markets are getting back to normal and also theres appetite r for offering to a disstressed offering of course and so i think that theres a lot of money out there to be spent and people are taking advantage of good opportunities when they do see them, so that makes investors feel better for sure youre starting to continue to secret spreads also come down a bit, too, which is encouraging a sign that we could be getting to the other side of this for sure thank you. Up next, well ask quickly the delta point you raised, got a government bailout. It just raised the ongoing question we can talk about it with terry coming up because it doesnt look like macys well, but the other point with delta, had they not got their government bailout, they wouldnt have gotten such a price they just got on this Public Market so its like a double whammy for those that dont get it for those that do. And i think theres a big question mark on whether well look back on this in years or months to come on whether this was done fairly or not because you happened to be in a sector the government decided to bail out. Absolutely. Speed was of the essence here when it comes to drafting these bailouts i think whether its relief for Small Business or for the big Hard Hit Industries like the airlines there will continue to be questions just like there was during the financial crisis about whether they were deserving and whether the government is picking winners and losers here. Wee going to have that conversation on closing bell up next, well have Terry Lundgren whether the Coronavirus Response will lead to the demise of the departmt enstore. We are back in just 90 seconds n. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Many are paying attention to georgias reopening and whether consumers are ready to go out shopping hey, court hi, wilf. So those nonessential retailers not yet permitted to open yet, but you Better Believe retailers are taking notes when they do to see how consumers will react the group helped us run a query to see which retailers had a higher concentration in the state of georgia city trends has nearly 11 of its 570 stores in that state catego categoryo owns is fashion and 9 of its 1300 locations many other big name retailers have about 4 of total store front in georgia including childrens place, american eagle, chicos and the stores under ascena like ann taylor and justice. Ralph lauren, bath and body works along with gap brands have around 3 in the state of georgia and as you were talk in about before, no one really knows how consumers will react when they go back, but a lot of surveys suggest a lot of fear. Back to you. Thank you Department Stores have been hit particularly hard recently even before the coronavirus outbreak with a number of store closures and names like j. C. Penny and Niemann Marcus reportedly exploring bankruptcy options as we speak joining us now to discuss is former macys ceo. Terry, youre the perfect guest on this. You spent a good chunk of your life working in Department Stores are they going to survive this crisis some will yes. I think most will in fact, sara, but anytime theres a difficult period whether it be a recession or this new experience were all going through now with the coronavirus theres going to be fallout. Those who came into this period of time with a strong Balance Sheet will get through it. Those who had a weak Balance Sheet to begin with are going to have a very, very difficult time coming out whats going to happen to Niemann Marcus, which you once led and is reportedly seeking bankruptcy protection . One report saying it could come this evening what does that mean for the stores, the employees and for the future of that name . First of all its a big dispoint to me because this is a Terrific Company its a very strong Loyal Consumer base that loves shopping at neuman marcus. Only one reason why theyre in condition they are theyre and thats because theyre overleveraged. Its been flipped a couple of times as you know, private equity getting into it and long story short, ive said this many times before for maybe a decade or more that highly leveraged retailers never work longterm how many times we have to learn this lesson. Happened so many times every time theres a financial crisis, you see the lineup of those perfectly Healthy Companies that got too highly leveraged, hoping to turn that company and sell it to somebody else that never should be the end game it should be focus on the consumer having a strong Balance Sheet so that when you go into difficult times, youre prepared to fight through them and thats unfortunately whats happened to Niemann Marcus how theyll come out, smaller, i dont know exactly what the format will be i just hope theyll deliver the Outstanding Service that company is known for for many, many years. Do you think, terry, the equity gets wiped out in that process . Getting to that point . Its very hard to say, wilf, how theyre going to restructure this is there going to be some l saviors that are going to want to come in and try to participate in this restructure . Im not exactly sure how its going to work. So well have to let it play itself out and there will be others that will have the same kind f a challenge or highly leveraged or longterm poor performing that will face this difficult time and i feel particularly bad for the smaller retailers who have good Balance Sheet going into this period but are no longer either Investment Grade or longterm viable because theyve been closed for 60, 90 days and these Smaller Companies in particular which makes up retail in america to a very large degree are going to have a very hard time if they did not already have a strong Online Business to help supplement some volume required during these last many days. Terry, do you think its unfair the way that the government has prioritized some sectors with its bailout programs over others i mean airlines clearly the ones we always discuss and they provide an essential service and a large country like the United States are classic retailers less essential today than they would have been 20 years ago because the online players can provide a service if the bricks and mortars do go under . Well, listen. Im a little biased here, but i do think that the federal government is doing quite a remarkable job try to manage the distribution of two plus trillion dollars in getting it into the the right hands in quick order i think its extremely complicated process and i give lots of credit to chairman powell and all of those around them who have been very respected ive got an open ear, listen to retailers talk b about what our specific challenges has been to my opinion, i think this is a extraordinarily challenging job. And i think its being done pretty darn well is there more required absolutely because we want to make sure we can get our employees back to work get them back to work in a safe environment where customers feel that theyre in a safe environment and thats got to happen in a gradual, thoughtful way, but thats what im counting on and hoping for and i think the government stimulus packages are allowing that to take place we just had a discussion around delta being able to raise a few billion dollars. Cnbc had a report that macys looking to raise 5 billion offering inventory and real estate as collateral i know youre not there now, but as someone whos led the company and been a part of it for so long, how long can macys stay alive with an economy shut down . We all have, not just macys. We all need to have consumers return to some level of con supgs again. This is about the economy. 70 as you know of gdp is driven by consumption of one form or another and retail plays a major part the sooner were able to get retailers back on their feet and allow consumers to to feel comfortable that they can come in and shop safely in these stores and that the employees feel safe serving these customers, these are required elements to getting the economy back growing once again. Getting it back on its feet first and getting it growing once again so a much broader conversation than one company i think its extremely important that both retail and restaurants get back to some level of where they were. Theyre not going to get back overnight. There are definitely consumer Behavioral Changes that are going to be some shortterm. We always see and others may be longterm, but over time, were counting on this being once the shakeout takes place and there will be fewer. Youve been talking about this for years. That needed to happen. Now its going to accelerate online is going to grow faster terry but i still think. Weve got to cut you off because we are getting now a look at the president meeting with a number of retail ceos about testing for covid19 lets listen theyre not spread too far apart are they they wont report themselves thank you very much im honored tor joined by representatives of many Great American retail companies. Some of the greatest ones anywhere in the world. And were talking today about Different Things and including distribution and medical diagnostics et cetera. Youll see in a a second, theyre going to say hello 45 days ago, many joined me in the rose garden to launch a partnership with private sector to accelerate americas kams tcy to test for the coronavirus. Weve made such strides. Just had a call with the governors. Just about all on the call everybody was very happy and the testing was going really well. Probably some of you were on the call even though you werent supposed to be the testing is going well. No complaints. Sin then, what weve achieved is nothing short of amazing United States now holds the world record for testing weve conducted more than 5. 4 million tests. More than any other country in the world and were growing it rapidly. You probably heard those numbers, just came out after encouraging governors in several weeks to leverage unused Testing Capacity in their states, last week, we provided Contact Information for specific labs where they could finld additional testing and capacity. Within 48 hours, the number of tests performed across the country began to skyrocket in april, the United States averaged approximately 150,000 tests per day. Thats up very, very substantially from couple of weeks before and the 1500,000 a day has gone to way over 200,000 tests per day since wednesday. This includes a 122 increase in michigan 124 increase in maryland and many other locations right in that vicinity and some are are higher than that to provide further guidance and support to the states, today were releasing our blueprint for state testing plans and Rapid Response programs. Together, were accelerating testing for americans at Retail Locations across the country and especially in our africanamerican and hispanic communities, were going very, very strong in those communities. Theyre currently 73 retail sites testing sites in 25 states in those specific areas and were increase iing it very substantially. A lot of progress has been made for africanamerican testing, hispanic american testing and Asian American testing so i look r forward to hearing from each of these incredible Business People who have worked so strongly with us from the beginning. Think of it, it was only 45 days ago that we got together and so much progress has been made. I thought they would go around the room and take just a couple of words then were having a News Conference in the rose garden because we have a lot of these folks are going to be joining us and theyll Say Something out there. Theyve got a big gift to our nation and to the people from some of the companies and i appreciate it. Maybe well start up with a very small company. A small little Retail Company known as walmart headed by a great guy. Please nice to see you larry, cvs health. Quest diagnosticdiagnostics. Walgreens Thermo Fisher scientific. Kroger. John u. S. Cotton rite aid. And we know this gentleman, right . So tremendous progress is made and well be talking to you in a little while at the News Conference mike, you have anything to say just a word of thanks, mr. President. Its remark bable to think these people about 45 days ago brought many of these retailers together with these remarkable commercial labs and we build on a Public Private partnership that you forged early in the coronavirus epidemic mr. President , when we first sat down with these great labs on march 4th, our country conducted roughly 25,000 coronavirus tests. Today, that number is 5. 4 million. And with the support of Companies Like cvs well continue to monitor anything that comes out of that. The Vice President and president and many ceos we know well, all of whom have stepped up to the plate together to deliver this private response private Company Response to increase Testing Capacity here in the United States switching focus. Some states are beginning to start to tentatively reopen. This comes of course as form rer federal Health Officials including dr. Gottlieb say the key to reopening the economy safely are testing, Contact Tracing and isolation theyre calling on congress to increase funding in the next aid package. Joining us now the dr. Lipkin, the wellknown virus hunter. At Columbia University the fda recently approve d a study hes leading to can he remember if plasma can be used as a treatment thanks for join iing us my pleasure i guess lets kick off with what i mentioned in the introe some of this tentative reopening by states. Is that something youre supportive of in the way that some of these states are doing it if its done carefully. I think its fine. The question is the details. We need to have better testing we need to be b able to track people who we identify as infected so we dont slide backward were beginning to see control flattening of the curve. It would be a shame to lose that progress were just getting some announcements from some of these Companies Whose ceos are meeting with President Trump right now walgreens says its going to expand covid19 testing with plans to open drive through loeks in 49 states cvs expanding its testing capabilities lap corps is going to be expanding Antibody Testing with no out of body costs how big is the gap between how many tests need to happen whether its for the virus or the antibodies and what is actually happening well the tests really differ in the type of information they give you the moll eck lar tests, vcr tests, crisper tests and so forth, tell you whether or not the virus is present those are the ones that are the most important they allow you to say whether its safe for someone to go and work with you. Allows you to find out whether r or not somebodys infected then track them from there. The Antibody Tests are very useful for those who want to figure out whether or not were getting dr. Lipkin, im so sorry, i have to cut you off because were getting breaking news. On the Federal Reserve, Steve Liesman with news. Steve. Thanks very much. The Federal Reserve expanding its this coming after some criticism from cities and counties and cities that were left out of the original terms theyre now saying that counties with 500,000 people or more can apply to this Lending Facility from the Federal Reserve thats down from 2 million and cities with just 250,000 people in it and thats down from a million. The idea is ita vastly expands the universe that borrow from this facility. They havent though increased the amount of money. Its still a 500 billion fund but more entities are now eligible to borrow from it like the Port Authority could go with it and finance for shortterm its bonds there. Sara i think its interesting, steve, that theres a current debate right now on capitol hill about whether to lend money to the states with you know Mitch Mcconnell saying no let them go bankrupt and you know the blue state versus red state and how much income do the states really need right now. And here comes the fed in to save the day obviously its different when it comes to stabilize iing the muni debt market, but how does that get to help these municipalities so its going to be a place where they can borrow and borrow more than they could in the market, but were just beginning this process of how to help municipalities here and the fed is just one piece of it. If you think the argument over lending to Small Business have been ruckous, wait until we get to this debate about how much money the states are going to need including their costs for medical care and hospitalization along with the tracing, the testing. Not to mention the whole other side of this which this fed thing is just a massive drop in revenues that are just from every single corner, policeman not writing tickets. Tolls not being taken and of course the drop in income and sales tacks thats going to hit a whole bunch of places so were just beginning the process but its not going to replace. Steve, i guess its a significant change from them but not a huge change relative to what theyve been doing in recent weeks and months, but it does show theyre listening and that in part speaks to the relative calm thats returned to markets compared to the month of march. Thanks r for the reality check on that. Youre right to make that point that this is something the Federal Reserve up until it announce d this program on apri 9th, would never do that it fore swore doing. Getting involved in this whole aspect of lending to states, municipalities it was something the fed wanted to be at whatever double arms length, it wanted to be far away from this. This has created an stroit situation of bringing the Federal Reserve financing. All sort of things it never did before incried colluding a high yield debt, corporate debt so youre right its like im coming to say this is the amendment to something oh, i forgot to tell you, is absolutely historic in its own right. Steve liesman, thank you for breaking in with that news back to dr. Lipkin, virus hunter doctor, sorry to cut you off we were talking about the need the ramp up tests and accurate tests and which tests as news continues to come from this white house meeting where it looks like the white house is enlisting these drugstores and retailers to ramp up their own testing, getting the numbers higher and getting access usier for so many americans. What needs to be done here so the moll eck lar tests are very, very good. Theyre validated. There are many of them now i think they can roll those out easily its just a question of paying for them the Antibody Tests are a little more nuance. We dont really know what these tests mean if people want to use them to say that an individual is safe to go out, is immune, i think thats overstating what we know. So im very bullish on this molecular tests, the Antibody Tests, its still unclear. Theyre never going to be able to tell us whether or not somebody is currently infected so i think its a misunderstanding of the value of the Antibody Test. The Antibody Test is certainly concerning to many of us in public health. To i think its fairly well discussed that we arent certain if having an antibody makes you immine at the same time, i feel the consensus in the marketplace is is if and when we have a vaccine, that will involve everyones problems, but if having an antibody doesnt make you immune, does that not also suggest as when we have a vaccine, it may not achieve the sort of wholehearted solve the problem for everyone type scenario that maybe people are expecting that it will at the moment okay, thats an excellent question and it gets to the heart of the matter, which is that you can have an antibody against one part of the virus, tells you youve been infected, but that doesnt mean you have a neutral antibody what we want to know about is those antibodies, it will kill the virus and people dont typically test for those they just test for antibodies that tell you youve been exposed. So thats a very different question and a different answer. Once we know we have neutralizing antibodies, good tests for them, then i can we can be confidence we can use these to guide management. But if peoples base case at the moment is its only a matter of time until we have a vaccine that achieves all that we hope it will achieve as opposed to a question of a if thats even b possible, are people overconfident about that, that well have a vaccine that works this Time Next Year . I think we will have vaccines several. I think its a very difficult which we make a vaccine, its not like flu or hiv, which are continually changing their composition. So theyre a moving target this seems to be b a fairly stable set the question is how are we going to know who has antibodies and who doesnt. And what value Antibody Testing has in directing management of covid. The molecular tests are very clear. We have excellent tests. Im confident we can roll those out. The Antibody Tests arent there yet. Theyll get there, but not yet thanks for joining us my pleasure breaking news on the status of the Small Business relief funds that began again this morning. The ppp lending program. Kate has got it for us hey there, were hearing an update from the administration with regard to the e tran system we told you about earlier that was suffering from some glitches and outages as the program got up and running for a second time today. A Senior Administration official telling b cnbc as of 3 00 p. M. , sba has processed more than 100,000 by more than 4,000 lenders. Unprecedent ed demand is slowing the response times currently, there are double the number of users accessing the system compared to any day during the initial round of ppp. Sba is actively working to insure System Security and integrity while loan processing continues. Theyre working around the clock to help all u. S. Small businesses during these challenging times, so once again, 100,000 ppp loans by more than 4,000 lenders no dispeshsment total information yetd, but well continue to update the program and its rollout. Back to you. Fascinating i would say that number im positively surprised by based on some of the reports we had earlier that the whole p system had crashed. That said, it averages out to 25 per lender clearly that will have a massive spread base on a big lender to a small lender and that number of 25 is well below the cut off for batch processing of 15,000 for the big lenders, so it just highlights this massive spread of whether this is a successful first day of reopening or unsuccessful first day of reopening and gerngs the mismatch between demand and supply yes and dont forget, they lowered the minimum to 5,000 so maul lenders could submit theirs as well. How quickly anyone is getting through rehan mains to be scene. Kate, thank you thank you. New hopes for home builders. Up next, well look at exclusive new data that could indicate a path forward for the hard hit industry to keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. The xfinity my account app puts you in control with Digital Tools to give you the help you need when you need it. Get fast and easy answers with personalized help 24 hours a day, 7 days a week. Change your wifi password to a phrase thats easy to remember. Even troubleshoot your services on your own. Were working to make things a little easier for everyone. Download the xfinity my account app today. Diana oleic has fresh data on the story its happening much more quickly than you might have expected in the initial four weeks of the national shutdown, sales of newly built homes fell sharply, down about 85 by that fourth week but in the past two weeks, the numbers have started to climb. And this is all according to data exclusively from John Burns Real Estate Consulting demand is primarily coming from renters in fervent areas the reason that i think were seeing an increase specifically in the new home market is xwen for that affect of its safe, its clean its new and its easy to show at this point. Now i spoke to a small builder in the d. C. Area this morning. He says that everything stopped for about a month then just in the last week, he sold three homes. Speck homes, which are of course already built. Now people are clearly worried about having to be home for a long period of time. Especially when they may need more space either for work or for children or for exercise even so thats why theyre looking to this new bill and potentially ooen moving out of the urban course back to you guys Everyone Needs space. Thank you. Up next, adapting to the new normal well speak to the head of Cloud Software Company Nutanix about how it has been working to sveol some of the biggest work from home challenges in technology. Thats straight ahead. Yes. The first word to any adventure. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. Companies around the world with adjusting to the new lockdown reality, but despite offering Remote Desktop produ s products, shares havent seen the same jumps as some other work from home plays joining us now is the founder and ceo. Good afternoon to you. Thanks so much for joining us. Thank you for having me so leets talk about what you guys do and how you power your Cloud Services and why that might have meant a bounce in services the company the cloud to the larger software and its what you ask is a very meaningful question about how were helping customers, but more so, what were going through as a company we have about half of annual billings and its a handful of companies that have this type of software billings. In the last year and a half, they have been transforming our own Business Model to subscription because we were really looki ii for what would happen if cu customers really want to run their software on prem and off prem thats what the company as a a whole. Now we b have been supported millions of desktops so far and customers in the last years, its about 25 of our business and an increase in the last month or so. So you got it down pretty sharply for billings and revenue last quarter zblt i wonder what youre seeing in north america right now since you have a good handle on what companies are doing with their it budgets and spending to build out things like servers and how you project ultimately north america is going to recover. Yeah i think weve all been honest there was initially this thing is all about supply, but its not. Many of our sellers are saying try to adapt to the new reality of not having physical meetings. But its just a human spirit and entrepreneurship that employees and sellers have found and infrastructure is one you still need in this education of health care and most of these are looking for ways to themselves like case in point is qualcomm federal. Its a very Large Development section of qualcomm working for federal agencies and they bring things up in less than a week. They say the only way is to do Something Like mechanics and similarly, School Districts, which are very large School Districts looking for things in less than a week where we had to go and screen the entire School Environment to their children or entire Office Environment to their employees. Its applications and data and desktops and virtually, but over the course of 24 coming six months, we probably have to adapt even more so. Thanks so much for joining us much appreciated up next, coffee with Hillary Clinton and a recording session with sting both could be a reality. But for a certain price. That story and the rt esof your daily good news rundown coming up next. [horns honking] birthdays arent cancelled. Hope isnt quarantined. First words arent delayed. Caring isnt postponed. Courage isnt on hold. And love hasnt stopped. U. S. Bank thanks you for keeping all of our spirits strong. Weve donated millions to those in need and are always here for our customers and employees. And sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. Welcome back it time for our good news rundown. Highlighting some of the positive stories out there in the wake of coronavirus. Chevron, for instance, donating 320,000 from its Global Community fund to the china Womens Development foundation in support of covid19 response effortses in china this years Nickelodeon Kids Choice Awards will be held remotely nickelodeon set to present a 1 million donation to no kid hungry tom hanks and rita wilson donating their blood and plasma after receiving confirmation that they carry antibodies for the coronavirus. Sothebys and google teaming up for an on line auction should be some interesting items on offer there up next, reimagining delivery, ups and cvs are shaking up how certain customers get their prescriptions in these uncertain times. I had good health insurance. Why isnt this covered . Well, then they started getting bigger. Eighthundred dollars. Eighteen hundred dollars. I saved for this. But not that much. Im glad i had aflac. They gave me money when i needed it most. Thats why aflac is here, to help with the Expenses Health insurance doesnt cover. I love that aflac duck. Aflac get to know us at aflac. Com thats why working together ist more important than ever. At t is committed to keeping you connected. So you can keep your patients cared for. Your customers served. Your students inspired. And your employees closer than ever. Our network is resilient. Our people are strong. Our job is to keep your business connected. Its what weve always done. Its what well always do. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Coronavirus shaking up just about every aspect of daily life, and picking up your prescriptions no different theres a new partnership between cvs and ups. One Retirement Community will be able to get their medication in a pretty hightech way drone delivery will begin in early may in thevillages, the largest Retirement Community in the u. S. Where more than 130,000 seniors live initially the drones will drop off at a cen federal location. Ups will deliver to doorsteps. Competitors of amazon say they continue to test drone delivery during this outbreak profits of ups are scheduled to fall 4 year over year. City estimates higher margin b 2 b shipments dropped by 30 more americans shop online during the pandemic. Wolf over to you. Thanks so much for that we have some breaking news on boeing. Phil lebeau has it for us as always boeing is going to be resuming 787 dream liner production down in charleston, South Carolina, that will begin with the shift on sunday night into monday and gradually at the beginning of next week with that move, they will now have all of their wide bodied production back up and running as was planned between this and seattle theyll have that going by the middle of next week. Phil, back to you. Remind us when this got shut down and what sort of production is the 787. The 787 is, you know, its the most popular of the wide bodies that the company is building right now in terms of having the largest bark log. The wide bodied production is just 20 of the overall backlog that boeing has right now. The bulk of it is narrow bodies, the 737 max. Its none the less, very important, and the dream liner production down in South Carolina has had you is spenedded production since april 8th, almost a month theyve been unable to working on planes down there. Phil, thanks. Nice move after hours for boeing, higher to the tune of 1. 2 phil lebeau. Final thoughts, as we gear up for a huge week of earnings, the s p 500 reporting this week, ill be watching pepsico in the morning. Consumer staples, especially food and beverage Companies Like that have been a bright spot in this market. What are you watching . They absolutely have, and i think this is a big question we come to right now, the talk turns reopening and when the economy might be able to start to rehab itself, do we hides in the safe stuff or try to get more aggressive. Even though the s p 500 was only down 15 or so from its highs. The average stock, the very broad market was down 6 the average stock was up 3 . Theres a lot of ground to make up without pricing in too much of a near term recovery. Thats the dynamic thats going on below the surface of this market starbucks after the close will be really interesting given what theyve seen in china and also samsung ahead of apple coming, of course, fairly soon as well. Were out of time for mike, sarah and i, thanks for watching welcome to fast money, im melissa lee. Coming up on fast, what you can expect when these tech titans begin announcing their results our President Trump wrapping up a meeting with retail executives. Kayla has the lightest
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