It took a tumble in less than six weeks and then rebounded 36 of the lows from april yesterday. The s p down 34 from february 19 to march 23, less than five weeks. Crazy to think about how quickly that fall came then we were back up 30 off the low for april. Joe . If you used april then i could get to 82 years i dont think sorkin was listening to me. I was i said, no, i dont remember. You are always saying maybe i wasnt around for that here is my proposition for you, andrew sell in may is a common expression go away ive never felt more like selling in may than i do right now. I have to be honest. It is not just you. Look at the dow this morning down 454 points. Just to test whether this kind of thing works. It would be impossible for me to go long with money what was he, 163 or something. I saw another guy say it is going to be so hard over the next year that we are looking at another 40 drop others that say the average recession that the market doesnt bottom for 11 months although jim paulson is saying everything is much shorter i think it is impossible to think about owning stocks right now. I will bet you the s p is higher the end of may 31 than lower based on where the futures indicate right because right the wisdom now is that it is all going to go down i dont think im going to be right. Im going to owe you back up you dont think it is sell in may and go away. I do. But i feel that too strongly by that measure. Sell in may and go away means you go away for the whole summer forget the expression what do you think happens in the next month i think the markets moved all the way back to what seems looic like a normal level. You think well be lower in may . I do but im going to take the lower. Will you take that okay lets make that worth our while. Ly i will buy you a box of doughnuts if we go lower you buy me a box of tacos if we are, say, above 2850 i dont know where we are going to be. It is a box of tacos. You would eat take out a month from now you think it is going to be safe i eat take out now. I went to chipolte last week. Again, glad we are not sitting by each other. The hardest trend to make is fighting conventional wisdom. Can you think why this market would be above 2,900 end of may trying to reopen the states. It is a learning experience im giving you that opportunity to buy you doughnuts youll be back here probably you can think about it take the bet. How about i buy you a hypo allergenic bond. Two bets. We can do two i dont think, i dont like to say this, i dont think either myself or becky will be sitting there in a month that will be even more interesting. That will mean we dont get back to work. Nobody is rebounding in a v way. Then you should take my bet and say we are going to be lower on the s p. Doughnuts versus tacos. Doughnuts for me. Tacos for you. A big box like 12 of them 12 doughnuts or 12 taco bell tacos. What do you want becky im going to take andrews side on this it is tough unless there is some miraculous recovery. Thats my point i want to take your side too i cant imagine. I want to take your side. I would love for us to be up at those levels plus we have sell in may going. Anyway one thing i did want to point out is that we fell so far so fast, look at those numbers, six weeks for the dow less than 38 . Five weeks for the s p down 48 . That is phenomenal it was a slow bleed in the past. This is where markets came to the conclusion quickly thank you to petter fer for rung those numbers this morning showing how huge those drops were we cant look at marchs numbers. We have to start from the market highs and how quickly we came down from there. You are talking about Massive Gains where we had a shock to the system we want to tell you about a number of important interviews the ceo of cargill who doesnt normally do Television Interviews talking about the strain and shell ceo talking about the strain on that company gileads ceo to talk about the drug remdesivir and ceo of moderna who are working on those vaccines that is the big question that big news could totally change any of this and make what joe says right normally, i would this is an important quarter like the industrial company, they are all important those are the ones i want to hear from today. Cargill, you know why. Because of the food oil that is the hugest question going. The dow component and oil to find out what is going on too with chevron we have a lot of Corporate News some of this may be with the futures this morning lets catch up on three of the digest stories of the day, apple, amazon and boeing mike stoantoli joins us now. Apple saying they see weak iphone sales tim cook pulling guidance, comments says he has great confidence in the long term of the business but in the short term, it is hard to see how the windshield, he says, to know what the next 60 days look like. Mike what did you take away from the numbers or of his tone right the tone is one of essentially not pretending that the company has a firmer grasp of what the next couple of quarters looks like than the rest of the countries has. But continuing to perform in a way that is very steady. Not fast growth. It is holding its form the buy back, probably the middle of the road but less than they could have done in the past the stock, these huge tech stocks they dont really owe you anything theyve outperformed in the nearly 40year outcome, lets not look at todays movement and say it is the markets verdict that something is wrong. But a very legitimate question it is a wait and see situation you have to wait and see if apple can hold on these situations it is getting a lot of credit for being this financially unassailable business at a time when we dont know what growth looks like lets also talk about amazon this morning seeing a surge in online sales and Cloud Business as people are stuck at home. The outlook slamming the stock this morning the company saying, this is one of the great lines ive seen if you are a share holdholder o amazon, you may want to take a seat they plan to spend 4 billion on virus response more covid19 tests for workers, shoring up delivery network, higher wages and more ppe. I think this will solidify their dominance in the space some investors not as happy about it, which im confused by. Mike everything going on right now is going to enhance amazons position in terms of the longer term trend the demand really cant keep up with it. The difference this time is that investors, they are used to jeff bezos saying forget shortterm profits, we are going to invest. This is a little different in that it is not really spending 4 billion for some payoff down the road by creating a new business or marketing or building infrastructure. It is really to deal with the conditions right now it is kind of lower or zero negative margin spending it doesnt change the longterm story. There is a difference and now we are saying we are recovering where we are right now im going to take the other side i dont see it that way. I think if amazon can deliver or can deliver all of the goods it can, it not only buys itself the market share, you think it would buy more you can do the things and do it profitably and do it without political pressure because they are not providing the ppe and the things you would want them to do that the danger and the risk to business is even higher. I look at it as an investment that has more than a zero margin return, if that makes sense. It is still defensive and reactive it is absolutely necessary for the franchise and im sure thats the way wall street will view it over time. In the very short time, lets remember, amazon was at an alltime high. It was up 12 . We are giving back what we built up in this rally, which did get a little stretch and overheated a couple of days ago why isnt it back to the future this is what we learned from them it is back to what we do take my word for it. You are worried about coronavirus impact, ppe and things like that right . Thats what you are spending it on, joe im saying, it is back to the revenue model where you Grow Market Share and you may not be as profitable as you like. Look where it is i remember people shorting it to 1,000. Remember the clowns that shorted it up to 1,000 lets talk boeing. The Company Raised 25 billion in a bond sale the blowout number that says will keep them from taking government aid you got some owe pinions on this no direct government bailout money. It was affirmed and downgraded the price they are paying for the debt is a little bit lower there is a little bit of play there. Clearly boeing feeling like it is worth it and where it will be for years to come. It changes the profile and now looks like it is a pretty indebited company. Thats why it was viewed as well worth doing at this point. Huge demand and blue chip view right now however you slice it you want in on this bet nothing to do with draft kings and not having anything to bet on im not jonesing for action. Lie it is a psychological hedge on your part you want some reward down the way. Thats the opposite i wouldnt mind losing this bet. This gives me something i look forward to either way. Youve watched the market for many, many years i would think i would have to have my head examined to go along. Many times when it is all said and done so what do you want if you win a years subscription to barrons or something i think im still on the list there. You still get that for free thats a huge perk you dont want in on this. You wont take the over or the under . No. I dont want in on a 30day window by the way, sell in may is really about six months of the year you are right i have been looking. Naz car is starting. Who should i take in the first race do you like this Jimmy Johnson guy. My question is phil or tiger . You should be in the option business we are not allowed we are allowed to sell calls or i think we are on a stock, we are allowed to own which has an enviern universe of one. Well talk about what is next in oil after the break. 7 00 a. M. , chevron ceo mike wirth will join us well be right back. Im 53. But in my mind im still 35. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex. Find our coupon in sundays paper. Seeing the break in the clouds before anyone else. Together, well weather this storm. And. L music fades in . Hey hi crude rallied yesterday after several producers said they would cut outlook the outlook remains cloudy even as opecs new deal is scheduled to go ahead. Lets welcome the managing director for april, you use the word trough do you think it will last two months or do you think thats the lowest it gets im not sure it is the lowest it gets. It is about as low as it can get without disease getting worse. There are tons of Global Demand just disappearing is pretty bad. We are at the reopening phase in the Worlds Largest oil consuming economy. If the 30 states that are reopening now, if they really get back to transportation as usual, we are talking head room of about 2. 5 million a day upside to the loss of about 30 million barrels. S at the same time on the supply side, you are looking at 10 to 12 million a day depending on how much will shut down in the near future. Coming in close to a half of the supply this isnt necessarily the end of the trough. The v shape we saw and to have a lot of other things. It is not going to and will have the delivery it goes to the point that the new normal there is at a very low and implies a scarey supply and demand dynamic for the oil market that no one was expecting six months ago when you look at the lower price of oil, that really underperforms all of the expectations breaking into the 40s. You ask where are we right now if i say, the good news of the story is that we have added a few willing owe bricks to the stack. That means inventories are still expanding. Not good news yet. When you ask where are things going, it happens fast at the end. It starts gradually and then suddenly when inventories rebalance, they are a long way off we are saying 0 of 50 states reopening is no small thing if it goes well if it goes poorly, it is really bad news thank you thank you for being with us. Thanks for having me. Youre welcome. A lot more this morning. Another retailer in jeopardy another big name that may soon file for bankruptcy protection as we head to the break, here are some images of the impact of the pandemic yesterday across america. Flexshares may look simple on the outside. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. 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. For a prospectus containing this information. Heres the thing about managing for your business. S when youve got public clouds, and private clouds, and hybrid clouds things can get a bit cloudy for you. But now, theres the Dell Technologies cloud, powered by vmware. A single hub for a consistent operating experience across all your clouds. That should clear things up. Since 1926, nationwide weve been there in person, during trying times. Today, being on your side means staying home. Nationwide office of customer advocacy. But we can still support you and the heroes who are with you. Were giving refunds on Auto Insurance premiums, assisting customers with financial hardships, and our foundation is contributing millions of dollars to charities helping with covid19 relief. Keeping our promise to be on your side. Welcome back to squawk box. It is time for the executive edge sad for me because i wear this all the time j. Crew preparing for bankruptcy as soon as this weekend. They are working on 400 million in financing the retailer has been struggling under a heavy debt load and sales challenged by the covid19 outbreak of course there were problems long before covid19 for the company. All of it magnified in a world where people arent going to the stores and the stores themselves are closed you wonder how much of this with the retailers go into bankruptcy restructure and are able to come out stronger versus able to look at a different form and shut down all together that doesnt seem like your style, sorkin. It is low end, isnt it . I would say the past couple of years, when mickey were running the place. Some of the goods were really high end i own a couple of their suits. I love their stuff becky, are you a j. Crew wearer . It depends. Everything goes through trends i have a goto shirt that always looks good. It is rare that i need to look good when i go out it is friday, so im going to do one more thing i know there is a pandemic i want to do something. Are you still into lululemons are you doing that every day at home you come in here dressed to the nines. Those abc pants you have, i own a pair i used to use for traveling, now i use for whatever are you wearing them today . I am wearing them today i have a lot of ag jeans or chinos, fivepocket pants whatever they are called you never do that here. You have to go and impress people at lunch typically. Absolutely. It is the way i work. It is not you hes trying to impress. Dont forget the Berkshire HathawayShareholder Meeting is happening on saturday. You can email questions to berkshirequestions cnbc. Com make sure you tune in on 6 00 a. M. Monday morning to get at in depth look at the meeting like youve never seen before they are looking at taking questions for a couple of hours, i think. This is what i wanted to mention, today is may 1, the 25th anniversary for john lefante our audio guy. Hes been with the company for 25 years we want to give a shout out to john hes been putting up with me for a long time but joe even longer. He did tell me this morning, one of the big reasons he is here is because of you he mentioned that to me i said why do we go back and forth. If i got you to keep this job 25 years ago, why are you such a [ bleep ] [ bleep ]. He saves your button a regular basis. He comes up with sound effects and music or something in the old days, he used to throw in austin powers or a yeah baby 25 years, that is great he had a family. He comes in and had a great career still has a great career hes been putting up with you longer than penelope has he thanked me it is a longer relationship than with penelope. He did say you are the reason he has stuck around. I had to stick up to him with the bosses like something was wrong with this guy. I think it is brigette shes still here she is. Where was brigette 25 years ago . That went like, snap like the 82 years all right when we come back, well talk about the slide in apple and amazon cara swisher is next plus the ceo of cargil, plus ceos of gilead and moderna thats next. Business as usual. Thats why working together is 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. Good morning welcome back to squawk box. Take a look at u. S. Equity futures. We are in the red. The dow will open down about 421 points the s p down about 55 points and the nasdaq down about 208 points apple and amazon reporting yesterday. The main focus on the calls was the ongoing coronavirus pandemic joining us now for her big tech take aways kara swisher, Just Announced is launching a podcast with the new york times, also a cnbc distribucontributor. And wherever she is, it must be sunny. You are lucky im here, andrew jeff bezos says to his shareholders that, you may want to take a seat the Company Plans to take the 4 billion it was going to make and reinvest it in the business mostly in the form of really trying to make the pandemic better to the extent you can secure ppes and testing for employees. A big deal there the question is, how should investors feel about that, how should the public feel about that welcome to jeff bezos you and i have covered him for a long time. He thinks this is the best thing. His weakness is dealing with workers. That is something that has gone on for a while before this and may go on after this they have to consider the surge in revenue i imagine that bezos that is apparently quite running the company after having step add way. Hes saying, we are going to take advantage of the gains we are getting during the crisis. Of all the companies, amazon is the one, i hate to say it, will benefit the most and get people on to prime and everything else. This is what he does he doesnt think much about returning money to investors as apple does you said you hate to sa