Even the president took note tweeting that, quote, oil prices are moving upnicely as demand begins again lets start with bob pisani with the move higher in the market, bob, and everything contributing. Yeah. Energy really on a tear right now. On a bit of a breakout energys leading retails leading 3 to 1 advancing to declining stocks again today second day in a row with advance decline line. Breadth as we call it. We are on 100 points either side of the roughly 2850 on the s p 500. I think that important thing is while were seeing energy, retail do well today, it is big cap momentum guys, kelly mentioned nasdaq, near new highs. Facebook, apple, amazon up 2 today. The market moves when the big five move like that even with some other stocks moving, as well helping the markets today, reopening optimism as kelly mentioned and a nice bounce in oil, treasury officials talking about no plans to punish china overall. Ism Services Better than feared i think and helping signs of stabilization there, as well so some optimistic data points there to look at besides the reopening thing. Very quickly, bloomin brands with numbers they own outback steakhouse, sales down 38 that gives you an idea of what we are dealing with right now. One simple data point and numbers are still pretty grim overall. Absolutely. Thank you, bob. In fact, we have a big, ugly data point the april jobs report due out this friday. Everyone agrees it will be terrible but what will the economy look like in the months beyond that . It depends on who you ask right now. Steve liesman joins me on Third Quarter growth what is the picture starting to look like . It is pretty strong, kelly. You have to think a lot of the optd mic optimism is based on the forecasts of a decent Third Quarter. This is the average of a dozen economists on the street look at the big, ugly 34 decline in the Second Quarter but thats followed by a 16 rebound in the following quar r quarter. Note that its not quite a v because even with the bounce back in the third and Fourth Quarter the average for 2020 is still down 5 , at least thats where it is now. So we know the conventional wisdom which is we get back to work, the economy snaps back take a look at the other side. Some of the rebound bears that are out there. They include bank of america down 1 for the Third Quarter. Rsm up only 1. 5 oxford 7. 7 compared with 15. 7 as an average for the whole. Michelle meyer she said to me this is such a painful and shocking recession that there will be residual pain. I dont expect business to start reinvesting right away it wont be structures and oil rigs that they invest in that will keep growth down in her opinion. Another opinion, joe says hes concerned of us getting back to work too soon and based on what ive seen and am hearing i think were at risk of another mini wave in the third and forty quarter and households will continue to self police. The other problem is that theyre concerned of this getting back to work quickly either to fail or that people wont go kelly . Right, exactly. Thank you. We appreciate it lets move on to talk about the Market Reaction to this. If the country continues to reopen is a vshaped rebound still possible if not, what happens to the market joining me is steve weiting and jim karen. Jim, ill start with you because you do think that the market and the economy are at odds here. Yeah. They are look steve was laying out this is really about the path and the pace of the reopening. Yes, economic demand exists but thats not the whole story we expect a ushaped recovery but thats not the whole story the key question that we just dont know is when the economy opens does it stay open . Does it stay open universally across the United States or are there parts of the United States that starts to close back down again . This is going to matter in terms of earnings, in terms of default risks. This is the key issue that we have to look forward to. What the market is assuming and im on board with this is that when the u. S. Economy reopens its more than likely going to stay open but i also think its a slow opening and that means that the earnings and incomes are going to be coming in but its going to be slow and consumption will be there but again it will probably be somewhat slow but enough to get a significant rebound in the Third Quarter compared to the Second Quarter and then the Fourth Quarter should also show some improvement, as well. You know, steve, i think it is interesting because you have come up with a new way to kind of look at equities and credits into covid cyclicals and defensives can you explain what broadly speaking is in each of those baskets . It explains a great deal of why a large cap u. S. Equity particularly nasdaq has done so well come paired to small caps in the United States, Global Equities that if you think about digital disrupters, ecommerce which is in discretionary, information content, whether its a provider of video conferences, whether this is software that is running all of these systems, the impact on those industries is really minimal. You combine health care and staples and u. S. Large cap shares have the largest component in the industries by far in the world so if you scale down, think about Energy Centric type of economies you can see really just the complete opposite why latin america, for example, in u. S. Dlaur terms at a 50 equity decline if you basket the different industries, you explain whats going on in markets generally. Steve, restate that for a moment so everybodys on the same page with you what do you think explains the fact that latin america is down 50 . Its the components energy, for example. Where weve seen jet fuel decline, where we have seen demand for transportation fuels. Petroleum. This is for parts of the world parts of our market relatively small in market cap. Now it is a higher component of the u. S. High yield market but if you think about equities markets generally, other regions of the world are having much higher weightings in industries, again, devastated by this impact if you take a look inside the u. S. Stock market, things like retailing in general, away from ecommerce, travel, tourism, and industrial activity which is highly dependent on being, physical demand for commodities. Those are again covid Cyclical Industries and throw in something thats a defensive component, real estate it is not all real estate but a good deal of commercial real estate of office space traditionally defensive. The covid impact is a cyclical weak area. Right jim, circle back to what you would tactically recommend here, whether its, you know, across equities or across fixed income. So the best opportunity that is we see right now are really across fixed income. Thats what i do im a fixed Income Portfolio manager but it is in the Investment Grade because this is the area with the most policy support. The fed supporting this segment of the market but it is not just about buying the index but Senior Citizen or thes within the index and bonds in each sector you may not want to have a big retailer with people shopping in one time might not be the best bet but with the index you might get the different strategies so the way that we think about this is to be idiosyncratic, active and very decision oriented in terms of what you buy and put in the portfolio as we like to say a stock pickers market. It is a bond pickers market and this is how we think about constructing portfolios and the postcovid or reopening period. Jim, steve, thank you both for the suggestions. Talking about these markets today. Tune in for an exclusive interview, Richard Clarida coming up today at 3 00 p. M. Eastern time looking forward to that. Wework owner changing the tune and suing the onetime biggest backer the details of the big, brewing battle. What will the company of diz n look like in a postcovid world . Will parks and theaters not be a driving force of the giant well explore that stay with us at least geico makes it easy to bundle our renters and car insurance. Yeah, helping us save us even more. For bundling made easy, go to geico. Com you just call on me brother if you need a hand we all need somebody to lean on. I just might have a problem that youd understand. We all need somebody to lean on. Welcome back what a story this is wework cofounder adam neumann suing softbank accusing an abuse of power deirdre . Kelly, the governance and business dealings have been exposed and well documents what this lawsuit could do is reveal more of softbanks role in the saga the complaint filed accuses softbank of undermining the part of the bailout to pay out billions to him and early shareholders an employees. It is also a very dramatic shift from what n eumann was called a beautiful relationship. Its a Real Partnership and i think the longer we know each other the more we can build it he is a visionary. He, i dont know if you know the story, the initial story to invest in wework took 28 minutes. Kelly, thats also a reminder of the investment style and acts with the gut an doesnt always work out wa back to you. Stay right there. Lets bring in david brown, host of the podcast business wars and a mini series about the rise and fall of wework david, it is great to have you here so, how would you describe what would be the name of this podcast episode for the latest turn well, its funny you should say that this particular turn that adam was referring to there where he first meeted masa, that comes in episode of we crash and it was called think crazy and theres a reason for that. As most of your listeners or viewers know, masas ceo of softbank in 2016 and a world renowned unicorn hunter. Right . The gamble on alibaba is small compared with the 4 billion of wework and took a 12minute tour of the facility and then the rest of the time in the limousine and thats it. 4 billion and then this company which basically releases office space its worth more than ford motor company. Right. So yeah i think i would be feeling warm and fuzzy coming to my relationship with softbank, at least in the early days but coming to think crazy masa san as we talk about in accept soed four of thor yes, se series says to push to the limits and i think most entrepreneurs with billion feel like im anointed by this guru of this unicorn hunter im must be doing the right thing. A lot of things change, you know. Deirdre, grab him, bring him in can you hear that if i could venture a title for that podcast episode let me take our colleague amandas suggestion, life comes at you fast now less than 5 billion value a beautiful relationship now an abuse of power i think that sums it up. You are living that right now, deirdre life comes at you pretty fast. I didnt know if the mic could pick it up. I think everybody sympathizes right now. David, well return to you in this issue what next for softbank i dont know the millions to pay out here but a lawsuit is something they can ill afford right now. Thats true but then again, i mean, i have seen a lot of critiques online of how adam is playing this out. How dare he seems to be a strain that is coming from a lot of people i dont know i mean, im not privy to the contract when softbank stepped up its recommitment to wework but, you know, if there has been a breach of contract i dont think that adam has much of a choice here. Hes going to have to pursue this by the way, a lot of people are under the misimpression that wework is kind of a tumbling down from what i can tell, actually, they have made enormous investments in their own company and have been growing. It seems as if the new leadership at wework is committed to making it work so, you know, im not sure that i would just count this off as a cynical move on the part of adam i dont think its anything look that. Deirdre, ill give you the last word on that. I dont know. I take issue with the fact that wework is growing. Rather i think it is trying to shrink theyre cutting costs everywhere they can they had to reassure investors of 4. 4 billion in cash as of the end of last year and i dont know if thats enough to face a recession. Remember, the whole Business Model is taking out longterm leases and renting them out on shorter terms. What happens there i think theyre trying to scale back very, very quickly and you have this visionary adam neumann whos ambitious and being pushed and now you have real operators and can they scale this back fast enough . Its true we knew the Recession Risk for them and now a pandemic and a recession that we havent really even fully entered into. Thank you for your thoughts. Coming up, it is not your imagination. Food prices are going up with some products jumping 25 . While overall u. S. Auto sales sunk by more than half, theres a bright spot in the sector what it is and whos benefiting. You can watch or listen to us live on the go on the cnbc app the exchange is back in two minutes. A genius. And it appears youre quite the investor. I like to trade. Well, Td Ameritrade has pros ready if you need help, say talking through a new strategy. Just in case things, you know, get a little rocky . Im sorry on the upside i think thats waterproof. Maybe not. Welcome back lets get the very latest in the coronavirus pandemic sue . Thank you very much heres the latest on the pandemic everybody, as you probably know pfizer has begun human trials for the experimental covid19 vaccine in the u. S the ceo calls it less than four months time frame of Clinical Trials an human testing, extraordinary. It contains genetic material to fight the virus with antigens for a human response. At least 15 children hospitalized with an unknown severe illness that may be linked to covid19 in new york city the patients range from 2 to 15 years old. Several have tested positive for covid19 or had a positive Antibody Test result. And former president braoba is addressing students as part of graduate together the onehour Televised Program will air on network tv and all streaming services you can get more on the coronavirus coverage by heading to cnbc. Com. Ill send it back to you. Thank you so much. The pandemic has also been putting pressure on the Food Supply Chain and as a result the price for certain products risen sharply. Jane wells joins us with more on who, what and where. Jane hi, kelly meat shortages are real as these packing plants have to close due to worker illness. I want to show you the affect on prices we have told you that the livestock producers have a glut of animals selling at a loss but look at the price of beef leaving the packing plant and goes to the grocery store. This is before the Retail Market it is going way up it is the box beef cutout price and in one week its up 24 to 30 depending on the grade chains like costco limiting how much beat to buy at wendys uses only fresh beef and in some places now it is not selling hamburger. I went on the door dash app, only chickens. 18 of the wendys stores without beef supply and food inflation about twice the norm right now. But back opposite if unemployment is high by the end of the summer. Listen. We also expect to increase in reliance, retailers using to drive traffic into the stores and the amount of promotions that consumers relying on at the shelf. Yeah. That will be later not now. Hardly any promotions now. We have plenty of food it is the food delivery under stress and right now more because of Worker Health than it is logistics back to you. Wow i was at the store yesterday and thinking about the ground beef price. I was just listen, jane im so relieved it is there. They could charge me 75 mockup. Im relieved to get it. Certain things are not selling. The highend cuts of meat which usually go to restaurants, theres a potential, look, youre slaughtering a cow. You may have to turn that filet into ground beef so it may be very tasty ground beef. Something to keep in mind dont want people to develop too fancy taste, though, as a result of this. Jane, thank you for the reporting. We appreciate it. Coming up, disney will report after the bell. The stock down 25 in 3 months what will postcovid disney look like plus, nearly 4 million homeowners are in mortgage forbearance plans. Whats the path forward out . Well explore that and shares of shake shack in the red today same store sales dropping nearly 13 . The ceo today sounding optimistic of how things looked lately over that last six weeks we have seen a steady curve up for us it is really encouraging id say its also thanks to the team we have created these drivethroughs at a shake shack that never existed never had a drivethrough. We have the driveup, curbside lanes and shifted to over 80 last week of our sales is on our digit digit Digital Channels the number of first timers more than doubled so it is exciting because we know that the guests tend to be stickier than a normal guest and we are working back towards dining room reopenings derek, seems like your team is operating just fine remotely. Yeah, everything is running smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. Welcome back to the exchange. Rally across the board today almost 2 for the nasdaq dom . All right it is a day for the bulls but can it last . Thats the big question as major u. S. Indices hold on to the gains. At the highs the dow was up 420 points up about 350 right now the s p was up 56 points at the high every sector in the s p 500 is in the green health care, technology and Energy Shares all kind of leading the advance. Meanwhile, on the laggard side of things, materials, Consumer Discretionary and consumer staples. The consumer theme to emerge in stocks on the move today we mentioned energy. Chevron shares are a big upside mover. Optimism continues to build about a pickup in demand for fuel as economies really start to reopen and people and businesses try to get back to work Norwegian Cruise Line is moving in the opposite direction as it warned it ma