Are in the markets for the second day in a row, weve had a nice rally in the open thats faded as we go into the close. This is part of that fading on the optimism of the reopening story here so banks have been weaker, retailers generally have been weaker, but still up fractionally, because the big five, the mega cap tech stocks are on the upside. We were talking about guidance, and once again, a number of the companies today pulled their guidance papa johns, mattel, office depot, genuine parts company, equity residential, Waste Management they join 170 other companies, that is one third of the ap 500 that has declined to give guidance and this is one of the reasons were seeing so much stock volatility how do you figure out what the right prices and multiples are when you dont have any idea what the earnings situation is going to be like we also have problems with dividends. Many companies are cutting their dividends as well, or even eliminating them altogether. Morgan stanley put together a long list of companies this morning that have not yet but might in the future. And a lot are top heavy in the energy group but also some industrials, like caterpillar and deere. Finally, we havent gotten a lot of guidance commentary, but heres my favorite of the day from planet fitness. They were talking about maybe the challenge of cheaper rent. All of their locations are closed, essentially, but theyre seeking to double their base of location from about 4,000 to about 2,000. Why . Theyre saying the pandemic is going to give them a lot of leverage in negotiating lower leases with landlords. Thats a little bit of good news if youre in that particular business expanding by getting rent cuts well see if that happens. Glass half full. Thank you, bob. Bob pisani so as an investor, how are you supposed to make decisions on what to buy and sell in a World Without guidance for more, lets bring in lori calvasina. Great to have you both lori, i will start with you. Your yearend s p 500 price target is somewhere below where we are currently, 27. 50 is your price target how do you even come up with a number when so Many Companies are pulling guidance how can you come up with a multiple sure, so we run scenarios is really the bottom line here. And only one of the seven scenarios we ran when we sat that price target was based on earnings and we put in our guesstimate an average p\e multiple but other things we looked at included, what is your typical move when youre in a recession in the stock market, when you see that first real year of pain we looked at the historical playbook and tried to look at as many nonearningsrelated metrics, as we could how do you think about the risks ahead, lori, and whether or not we understand them all . In a World Without guidance, to continue this theme, you know, is Government Data going to tell the full picture for instance, we got the stupendously terrible adp number this morning we were moderately higher, and yet, maybe job cuts arent the whole story. There are a lot of people being asked to forfeit some pay, which will obviously crimp Consumer Spending i think thats a great point. I think when the data is murky, when its tough to model, you have to rely on logic and common sense. When we look at the economic data, i think the market is assuming that some of these indicators are seeing their worst point in time. And that while things will stay bad for a while, the rate of change will improve. And thats all well and good and thats often a catalyst to get markets higher, but i think you have to consider some of what i call the lasting wounds and scars that are going to hit the consumer, that are going to hit Corporate America for this crisis i think you make a great point on potential pay cuts and how that may affect Consumer Spending when we think about what all of this means Going Forward, we think the market has been legitimate to sort of price in some initial signs of recovery it hasnt been illogical, but it might end up being wrong were going to have to watch the data, see if that rate of change does improve but in general, as we see the second order impact of this crisis and the third impact, i think investors will be shocked. We are setting up for choppy markets for quite some time. We feel very, very comfortable with our 2750 number small caps tend to be more domestically focused and they have overperformed the broader markets yeartodate and small caps tend to be a little bit more economically sensitive. And right now, were flying at zero visibility for a lot of companies, when we dont have Earnings Guidance and we dont really know what the shortterm is going to look like. So i think this is the time that you really have to focus on Balance Sheets and how adaptive is the Business Model and look out beyond just the next quarter or so in order to really value companies. Youve got to look beyond the next quarter, because were not getting guidance at this point, once again eric, one of your picks is keyla, and semis have been blazing higher helping tech turn positive for the year. And yet this is a stock that has underperformed its peers in the Semiconductor Index so what do you see in this particular name . This is one that we think is kind of underneath the radar they provide Capital Equipment to Semiconductor Companies they have a lot of cash. They have a great Balance Sheet. And we think that theres some underlying secular trends that are going to allow them to gain market share over the next few years. So we like the stock at todays valuation. Based on what we see over the next two years, with or without the virus. Were going to leave it there, guys. Thanks so much for joining us, eric marshal and lori calvasina. Shares of General Motors higher today after that Company Managed to squeeze out a little profit in the First Quarter. But the stock is still down nearly 50 from its 52week high phil laboy joins us with more on all of that. Hi, phil hi, tyler despite that small profit in the First Quarter, make no mistake, covid19 has had a huge impact on General Motors and certainly did in the First Quarter how much did it cost the company . 1. 4 billion. Remember, the plants were shut down in china for a time being in the First Quarter and here in the u. S. , theyve been out of Service Since midmarch. So the companys focus right now is all about liquidity, starting with the 33. 4 billion they have on cash in hand right now. Heres ceo mary barra. Well continue to focus on preserving cash and our liquidity without sacrificing investments and key product programs and technology that will lead us into the future and the folk as they restart those plans, which are expected to get back up and running by may 18th or starting on may 18th, it will be a gradual ramp up, but they want to restock the fullsized pickup inventory. There have have been dealers around the country that have had doubledigit sales despite coronavirus. Doubledigit sales increases and they cant get enough of these they need to restock their pickup truck supplies. Having said that, tyler, keep in mind as you take a look at shares of General Motors, they do not expect much from the Second Quarter they know that sales will be slowing down they have, again, not had production since midmarch that knocks almost a half million vehicles out of production remember, they get paid when they come off the line, because thats when the dealers buy them they dont get paid when you and i go to the dealership so let me ask you this, phil. You said theyre reopening their production, i believe you said, the 18th of may. Thats the plan right now thats the plan. That means that all of their manufacturing facilities will be up and running or moving towards that on the 18th of may. All of them . It would depend on whether or not the local conditions permit that lets say theres a plant in an area, theres been a flareup and the local authorities say, we dont think this is the right thing to do, General Motors is not going to say, were opening it up nonetheless. Also, tyler, theyll be doing this one shift at a time they want to make sure they can get up and safely operate, theyre not endangering any of the employees there, and b, they can operate as they should be operating you just cant flip a switch and say, okay, all three shifts come back into the plant. Youve got to make a number of changes, which they are making in those plants. It will be a far different environment. On may 18th, it would likely be a gradual reintroduction of production here in north america. Got it. Phil, thank you very much. Phil lebeau reporting on General Motors melissa . All right, tyler, coming up, a mixed bag for the market as tech outperforms and Energy Stocks are under pressure after oil reversed later utilities and financials also a drag well have much more on that later this hour. Plus, the Small Business administration handing out loans for round two of the Paycheck Protection Program well talk to the ceo of washington federal, which has processed about 750 million of worth of loans about what he is hearing from companies teth on power lun,ig ch rht afr is soft music [female vo] restaurants are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. Across america, Business Owners are figuring things out. Finding new ways to serve customers. Connect employees. And work with partners. Comcast business is right there with you. With a network that helps give you speed, reliability and security. And enough bandwidth to handle all your connected devices. Voice Solutions Like remote Call Forwarding and readable voicemail. And safe, convenient installation. When every connection counts, you can count on us. Get the connectivity your business needs. Call today. Comcast business. Welcome back to power lunch, everybody. Small and midsized banks have stepped up to keep Small Businesses afloat through the Paycheck Protection Program. A Regional Bank based in seattle says it has processed now more than 5,500 loans with the average loan size about 145,000. With us now for more on the path forward for Small Businesses is brent beardall, the ceo and president of wafd bank brent, good to have you back i guess when the ppp program started, it was a bit of the wild west. People really didnt know whom they were supposed to approve for these loans. In and out with the second tranche of money coming through and maybe some of the rules being spelled out better, has that aspect to this program receded at all it has. Its receded quite a bit i give a lot of credit to the sba. They have worked like crazy to come up with exactly what the rules should be. We just needed Firm Guidance and now we have it so the processing times on these loans has literally gone from a number of days to where were able to process loans in less than one day at this point, if the borrower has the package ready for us lets talk about those borrowers. What are you doing to ensure that the borrowers actually qualify under the program . Because one of the criticisms, of course, of some of the loans was that Larger Companies were manipulating the regulations one way or another to get loans when really they shouldnt have, or that they didnt qualify and were doing fraudulent things to get the loans. How are you make sugar that the right people are getting the right amounts . Thats a good question. And let me first say that bank fraud is a very serious issue and i applaud the prosecutors that are going after the bank fraud. Let me also say that this program, as you pointed out, was like the wild west a lot of people were trying to figure out the rules as we go, and we have a lot more rules today than when the program was rolled out three weeks ago so the sba came out and said, it is first come, first serve banks, we want you to get the money into the hands of Small Businesses and we worked like crazy to do that and i think theres some people that ideally you look back on and say, do they deserve the money probably not but they fit within the rules that congress and the sba put out. You had to have the certification from the borrowers to know they had a diminished business their revenue was down and they were worthy of these funds to keep their employees employed. And i think thats what we need to look at was the intent of the legislation, which was to provide funds for Small Businesses to keep their employees employed for eight weeks, to get through this crisis, so they wouldnt have to go into the lines of the unemployment administration. And whether those borrowers actually did not have access to other pools of capital that they could draw on, which must be something that you check out raad assiduously, i presume lets talk about the bank and its operations you made a profit in the First Quarter. You paid a dividend. I assume that the dividend is secure youve been paying dividends for 100 plus years weve been paying now for about 35 consecutive years on our cash dividend. We feel very comfortable with that we have been very active in terms of Share Repurchases in the past weve taken a pause in terms of Share Repurchase none of us know exactly what the impact of covid will be on our Balance Sheets we feel very secure in terms of our underwriting and the sponsors we have behind our loans. But we need to see what the depth and the duration of this crisis is, but ultimately, i think banks are very well positioned now to be part of the solution we have a great deal of capital. With the new accounting loans, banks are well positioned to be able to withstand this crisis and to be there to be able to deliver liquidity for our borrowers. My memory fail there hed thee go ahead, finish your thought. I was going to say, its 148 consecutive quarters youve paid a dividend not 148 consecutive years. Finish your thought and melissa has a question one of the things weve seen is our borrowers are looking for liquidity on their Balance Sheets what are they doing in these Uncertain Times . Theyre calling on their lines of credit to put the cash on their Balance Sheet to be able to know that they have the cash in times of distress that are coming to us we did the same thing as a bank. We have all kinds of untapped lines of credit. So right before yearend, we borrowed over 1 billion for ten years at very, very low fixed rate below 1 to put that liquidity on our Balance Sheet for our borrowers. And they have applauded that its one thing to say you have the strength, its another thing to see it sonnet Balance Sheet brent, i have a follow up question on that point in your last earnings point, you had indicated that 7. 5 of loans are identified as quote unquote high risk. How does that definition of highrisk change as the pandemic deepens . And how do you view a highrisk borrower now versus some of the stress tests that you might put into place, vince, an individual that might be borrowing, might have a salary today of 100,000, be asked to take a pay cut or lose their jobs, and it becomes a completely different story yeah, that will evolve over time, as we see how this crisis evolves and how getting back to normal, what it looks like in the state of washington where were headquartered. Thats in four phases. The highest Risk Portfolios we have now, of course, are hospitality. And many of our hotels are just shut down in their entirety. The key for us getting hospitality back on their feet is to have business travelers to start again. Were working very closely with borrowers, and thats one of the real positives out of this recession. Banks are being very communicative with their buyers and vice versa and a lot of people have asked, why have Community Banks been so successful in getting the ppp loans out there, where many of the larger banks have not . I think it comes back to relationships. Relationships matter you need great technology, but you also need to be able to call up a banker in times of distress and ask, what does this ppp loan program work like and do i qualify or not final question, and i need a quick answer, what are you doing with respect to mortgage forbearance for borrowers who are having trouble making their Monthly Payments we are happy to work with our borrowers. We are a portfolio lender, so if they reach out to us, we are happy to defer their payments up to three months to begin with, but then it can go on beyond that, if they show us that theyre truly experiencing distress brent, thank you so much for being with us. For the latest on thank you so much you got it. For the lathe on Small Business news and advice and other resources, go to cnbc. Com. Melissa . The tenyear yield hitting its highest level in a month lets get to R