Losses the university of michigan warning of a billion dollar hit from the pandemic. Their president will join us kelly. Stocks are lower coming off two straight weeks of losses lets get to bob for more on the selling today. Modest rally in the last hour s p is comfortably over 2800 again. Two issues weighing on the markets. I think a lot of investors surprised by warren buffet not so much buying the realizizati realization tha slower than people anticipated restaurant stocks all down dave and busters, dennys. You can see theres less optimism it will go so well in the restaurant stocks today. Mr. Buffet getti inting out of positions didnt help at all all down 3 or 4 the leadership out there on the plus side, wfh the work from home stocks have done so well the wall greens walmarts have all done so well a little bit of, i think optimism that the Energy Stocks are continuing to holdup well. Weak open but a lot of the big names in positive territory. Refiners Like Marathon Petroleum and the big expiration of names like hess and marathon oil back do you. Do you have some new poster behind you you keep trying to move them around a little bit to make it a little more interesting for people i think people like looking a little bit of modest diversion with all the grim news thats the way ive been looking at it. I like the Nine Inch Nails poster behind you. Thanks very much lets get out to rick for a closer look at the bond market take it away thanks. Were looking at yields up a bit. As you look at the two day chart, what should jump out is we keep hitting the breakers in mid60s. 61 to 62 basis points seem to be the best support this chart is a month chart. Youll notice between the 53 on top and 36 o tennessn the bottoe main revertsing. It means markets are comfortable. We want to pay close attention to break outs. The fl the flatness is moving down the curve. Theres one area that isnt flat 30 years minus tens known as the knob over bond spread. The threeyear chart hovering at 65 plus. Its the widest its been in three years. We want to Pay Attention to that 30year. For a while it was the darling now it seem like most of the global buying seems to stock around the tenyear maturity thank you what do you find steve were able to track the data. Were introducing the cnbc road map barometer. Were going to track three daily data points. The first is store closings y l yelp the second is closing and the third is from Ladainian Tomlinson products 14 average weekly increase by state in store closings. They continue at pace. 107 is where we are relative to the average growth in new infections on a threeday average there. Were running about the same as we had been in terms of new infections we are doing additional testing. Fi finally, traffic in ten cities in open states, just 22 of normal not so far showing very much traffic. Take a look by state this shows the percent change weekly map here in states. You sew the red blotch in the middle those are oil states we have been seeing second round of store closings that have to do for economic reasons than covid or Health Reasons the state governments are restr restricti restriction. Second, do business open and third, do dust mcustomers go we can folsom of this on realtime for you some of that map will turn green a and the number of infections will go down at the same time. Thats what well be looking for. Steve, ill pick it up. Thank you very much. At Berkshire Hathaways meeting, warren buffet sounding quite a cautious note. Listen to him explaining why he hasnt bought anything yet and why this time is different from the financial crisis in 2008 listen we have not done anything because we dont see anything attractive to do that could change very quickly or could not change. In 2008 and 09, we werent buying those things to make a statement to the world i may have made a statement to some extent. Im glad they did if they did. We made them because they seemed int intel jents things to do and markets were such we didnt have that much competition. As buffet sits on the sidelines this time around, lets bring in michael farr and rachel aiken michael, if i interpret mr. Buffet correctly, its that hes saying he cant identify any value right now. Why should that surprise us . Value is almost hard to perceive when you dont know what the underlying prospects of the company are. I think youre right. His comments echoed some real leadership Geoff Gundlach have been saying hang on. Were waiting for this economy to work its way out and while there is good news on the disease. Theres good news there. We have to invest based on numbers. The numbers seem to be getting worse. I watched him for decades. You wait the hear for the buffet news that hes been adding to this stock or that stock people used to say ta poor old warren buffet, he doesnt get tech anymore maybe hes past his prime because these dot coms are the wave of the future he usually gets the last laugh i figure he does this time its a good word of caution. Take your time and if youre going the buy, be opportunistic and make sure theres some real there there to get you through perhaps what could be a more difficult market yeah. Nothing happies the heart more than an 87, 88yearold man who is still investing for the long term as warren buffet is. Rachel, let me turn to you michael said theres good news on the disease front yes and no theres good news in the sent therese theres a fast emergency use but case counts are going up that perhaps death counts will rise markedly here in may and june. That would be quite a reversal to those who have put money behind the idea that the economies are going to open up and things are going to return relatively quickly to something approaching normal thank you i agree that watching the spread of the virus and spending as well as individuals will be the key the seeing how well and quickly we can reopen this economy. Theres two schools of thought the optimistic school is that by reopening well be able to do so relatively successfully with perhaps herd immunity protecting us and this that our consumer behavioral patterns will not markedly change for the long term we then have to be very cautious that with the second wave, what will that bring. Even if you do open, will we have consumers there theres been many surveys. University of michigan had a survey where the majority of their respon dents recorded their biggest concern was their health were starting to see behaviors that are not about getting out but the health of the individual if you have an itch to invest and put money to work, investing in companies that are Fortress Companies where the revenue stream is relatively dependable, what kinds of companies are we talking about here tyler, the economy, as we e early morni merge from this, there are some that wont emerge and others that will lead companies more like the pepsi colas ive owned for years and snap food for years. Its terrific for Companies Like pepsico. Microsoft has allowed so many us of to communicate. My Company Signs on Microsoft Teams every morning. Everybody is on this call every morning. Fabulous technology. How quick and rushed will we be to get back to the marketplace two companies there with fabulous balance sheets, earnings and cash flow some of the Health Care Companies too. Johnson and johnson is not a bad company for the long term. We cant do a far interview without johnson and johnson getting in there one of the stocks you like is scotts miracle gro the only thing you can do on the weekend here in the suburbs is work your garden and lawn. Agreed. That is holding them in good stead and has. Their preliminary sales result for q2 report a strong increase in demand in 25 on their purchases because lets face it, were all at home. Were able to focus that time and energy on our properties rachel, thank you very much far out, thank you michael kelly. If youve got a garden going already, i told you i went for the seeds. I got cucumber i have no idea what im doing but very excited they will come up later you have to give them lots of sun. This weekend i was mapping across the sun across the backyard at every hour good for you. Thats the way to do it. Its embarrassing coming up, energy is the best performing sector as oil bounces and financials and industrials are leaving the decline. Theres your full sector board looks like six out of ten are negative as businesses more than half of the states begin to reopen, well speak with a top doctor about the risk of a second wave of coronavirus cases much more power lunch after this we live in uncertain times. However, there is one thing you can be certain of. The men and women of the United States postal service. Were here to deliver cards and packages from loved ones and also deliver the peace of mind of knowing that essentials like prescriptions are on their way. Every day, all across america, we deliver for you. And we always will. Welcome back the powerlunch, everybody. The fda stepping up its Quality Control of antibesiody after approving the near perfect approach back in march they opened the flood gates. All they had to do was notify the fda that they validated their own tests. While the fda says they need to be more scrupulous about what tests are on the market. Now they are giving Companies Ten days to provide their validation data to the regulator and file for that emergency use authorization be p th authorization. They are setti inting specific thresholds in terms of thetrue positive rates one of the tests that did just receive this emergency use authorization is one from rosch. It does have high numbers on those sensitivity measures 99. 8 spes fcificity they are saying high double digit millions of them just in may alone. These are testsantibodies to previous infection many are hoping that means you will have immunity but the science is out on that i was going to ask a quick question to get her reaction to the stories over the weekend from our kribcontributor that mitigation may not have worked effectively as we had hoped because the number of new cases is still rising. If you sweep out new york and the pacific northwest, they are rising rather markedly how do you react to that well, what it appear is the plateau is happening around the country. As we implemented these measures were not seeing an immediate comedown in days as well he says the measures stretched out our epidemic were still dealing with the outbreak its sticking with us. Its interesting the look in different places how measures are working in different ways. We are still dealing with this as we stretched it out by social distancing all right thank you. Thank, kelly didnt mean to step on you there. Absolutely. We appreciate it more than half of states in the u. S. Are easing lockdown restriks now well talk about all of this with the testing and so forth. Some states reporting spikes thats as the u. S. Passes a million positive cases doctor, we have even seen, we mentioned this briefly last hour but the cdc projecting there could be an increase in june in the number of cases and deaths as the weather is nicer and people are able to get out doors and get vitamin do and so forth. What is your sense of acceleration we might see . One thing were seeing with roping not being in agreement with the white house guidelines is we could expect that there would be a spike the white house guidelines on reopening safely, phased approach, i dont agree with all of it but i think theres some strength to that frame work. We havent reached that frame work in many places. The evidence based approach they yurzi in using would suggest if we did not adhere to that, we would see spike in cases i share the concerns one thing that we often hear when we talk to the Health Specialist is people in the general public who say its all well and good for the Health Care Sector to be worried about this but were in a depression people are losing their jobs theyre losing their livelihoods. We cant afford to be too cautious anymore what do you say to that . Those concerns are extremely valid but they need to be valid with other concerns. Im in the sure the ceos are used to thinking about it this way. When they say we need to reopen the economy to save jobs, they need to find their parameters. I need to hear from them very specific frame work for them that they are asking us to go by maybe they are going to say, well in order to save one million job, im okay with 10,000 more dead bodies. I need them to state their parameters clearly theyre not used to thinking about if i do x, y, z, here is how many deaths i will cause every one has a number when people say its time to reopen they need to say open im willing to accept this number of more deaths. Thats the calculation we need to be making i want to come back to the scott gotley argument that mitigation has not worked as successfully as we might have suspected. He says if you sweep out the new york tristate area, the case count is rising still. The hospitalization count is rising still he says as a result of that mitigation hasnt worked as well as we would have expected. Id like to get your reaction to his argument and the idea if we did not practice the mitigation things we were doing that the case count would be even higher and hospitalizations would be higher and even though it may not have worked perfectly, we did succeed in flattening the curve or lowering the imcrease he was correct that the mitigation strategies have had an effect. I think its been successful but the question is was it effective enough its hard know because theres so many undiagnosed cases. The way you test and how much, where, who when. All that changes not only the the number of new cases but depending on who gets it determines how many can die. We have flattened the curve and we havent seen a decrease yet. What are my odds of coming in contact of someone who has this illness if im riding the subway in atlanta or getting on a bus in dallas . Its the Perfect Question its wa we wrote about in an es is a that i coauthored today. What we look at is very clearly answering this question. A marta car in atlanta can hold 100 people we know that people pile in more than that. Given the circulating number of cases in georgia, not even correcting for what we think is a lot more we havent heard about, the odds of being on marta subway car with a virus would be 20 or so its probably higher than that the issue is most people dont know they have the disease if they are out and about thats why this pandemic spreads. All right, dr. Faust, we thank you. Still ahead, crude creeping back above 20 a barrel sendi i Energy Stocks higher on this day as the oil market gets set for the close. Well bring you numbers after this disney sinking after a downgrade on fears a second wave of coronavirus could hit and hurt its business even more well tell you what has one top analyst so worried about dneisy. More power lunch coming right up [narrator] at Southern New Hampshire university, were committed to making college more affordable. Thats why were keeping our tuition the same through the year 2021. [student] i knew snhu was the place for me when i saw how affordable it was. [narrator] find your degree at snhu. Edu. You have the support of a, probiotic and the gastroenterologists who developed it. Align helps to soothe your occasional digestive upsets twentyfour seven. So where you go, the pro goes. Go with align. The pros in digestive health. And if stress worsens your digestive issues, try new align digestive destress. It combines aligns probiotic with ashwagandha to help soothe occasional digestive upsets, plus stress that can make them worse. And try align gummies with probiotics to help support digestive health. Featuring the Emmy Awardwinning voice remote. All the apps you love, including netflix, prime video, youtube and hulu. And the most 4k content. The best Entertainment Experience all in one place. All right. Lets get over to sue for the latest on the coronavirus. Hi, sue. Hello here is what we know at this hour Supermarket Chain krogers is limiting purchases of some Meat Products amid the pandemic other grocers have put in similar limits including costco, sams club and stop and shot it comes as many meat process sors work to reopen. Britain is reporting its lowest daily death toll from the virus is more than a month uk Health Secretary says weekend counts tend to be lower and he expects those numbers to rise. A top English Health official says new studies show that most covid19 patients develop antibodies but far more evidence is needed before we can be sure that those antibodies actually give immunity to reinfection. You can get more on or coronavirus coverage by going to cnbc. Com back over to you thank you very much. Lets toss it over to seema mody today. Disney falling today after more down side in theme parks. The visions this comes a di before the Company Reports earnings on tuesday. The trading nation team today is bill baruch and gina sanchez do you agree with theage i agna that says the impact will be much longer than anticipated i agree the issues they are highlighting is very big 70 of disney revenues comes from park and media. If you have lower ad spending budgets for next 18 to 24 months and a very slow reopening of the parks then that will hurt disney i agree theres reason for caution. Bill, would you be owner o of the stock ahead of earnings . I think you have to be pas s patient here this is not surge last year because of the parks its the direct consumer of the streaming. I think theres a lot of value down here. 90, 95. I think you be patient and the Broader Market may come a bit. That could give you the opportunity the buy disney thank you for your perspective. Head to our website or follow us on twitter at trading nation kelly. Still ahead, the university of michigan says it could lose up to a billion dollars as a result of this pandemic. The schools president joins us next well look at two sectors in pearl. Retail bankruptcies continue with j. Crew as the latest victim and warren buffet cashing out of airline stocks. Our breaking News Coverage is back after this. There are times when our nee