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. Be