What happens after yesterdays big move the dow down yesterday by 2. 1 the dows worst performance going back to may 1. A lot of this was happening as we were getting comments not only from Stan Drunkenmiller and dave tepper talking about his concerns about this being the second most overvalued market he had ever seen. Comments from fed chairman jay powell all of those things adding up saying what do we need to worry about and where do we need to be concerned . Watching the treasury markets, you will see the yield for the 10year right around 0. 61 so that is with a little more pressure. Watching wti this morning, you will see that is up about 5 i think it is 2r5iding near session highs of 26 a barrel. Andrew thank you. Every day, we have a huge show another big one this morning what is on the lineup this morning. The ceo of verizon, New York Times, mohammad eleran to join us and eric schmidt who will be working with the governor of new york states and work places looking to him and that group to understand where it is all headed Hedge Fund Manager david tepper saying the stock market is overpriced. Caller the market is pretty high the question is has there been differential o different allocations in the market the market is by anyones standards pretty full. Then again, there is a lot of liquidity there, the fed is still there. It is too hard to say the market cant go up or Something Like that but it is not a very good risk reward market. Saying some big tech stocks like amazon, facebook and others will be fully valued he said airlines will be difficult stocks as long as they are keeping middle seats open. Yesterday, i was watching. Powell was pretty somber between three and four, i got nervous. 500 was not the low. It was 700 and falling the day before, earlier this week, remember, the close after we watched fauci talk about a bridge too far actually where we are going to do a story about richard burr. Remember, we did a story i messaged you, he grew a beard. Hes the guy who sold all the stock. That didnt work people remember that hes the guy. So 700 and 450 has an drews doughnuts looking much better. This is not a frivolous bet. There are serious things happening in the country it was on may 1 i dont want the doughnuts. I prefer to lose becky glomed into this bet. She thinks shes getting a 2,000 hypoallergenic dog. I said what do i get she told you, you dont get anything has not how bets go. It is when you bet with a woman. I have a 14yearold preowned dog for you. We have to work on that. Andrew, your doughnuts are im not convinced yet. What is the date the 14th i was up 80 s p points and yesterday, it looked like we were going well below 2,800 on the s p. My tacos are i can afford my own tacos, by the way. Here is what ill say. I was much more sickened on may 1 about the prospects of this whole world and we are down from there. I think the jury is still out. Still only dropped 1 since that day on the 14th with all of the swirling things going on do you see what im saying we should be testing the lows again, basically maybe we still will. I know becky has to talk about teppers comments and jay powells comments. The other comment is the World Health Organization suggesting we might have to live with this forever, meaning we may never get a vaccine. If thats the case, this whole thing becomes complicated. Then you have bill miller say, if you are betting against airlines, you are betting against a vaccine. There is a real question about that do you bet against the vaccine or not i dont agree with the w. H. O. , the w. H. O. Hes been trepding a lot because people with asking about the w. H. O. You heard dr. Scott gottlieb weve seen immunity with people who had the disease. We are seeing immunity and a response that makes them recover. They expel the virus and it is gone by definition, it should be possible to bring that same immunity with a vaccine. Also saying we wont have a cocktail of some type of vaccine. I dont think i would listen to anything the w. H. O. Says at this point. Lets wait thats truly a worse case sk scenario just saying those are other things on the mind at the moment if the market goes down another 500 points and we never reopen the economy even if you have a vaccine, thats a different story andrew, back to bill millers comments on the airlines, i completely respect miller. If you think that airlines are going to come back at some point, that doesnt mean theyll come back in the same iteration or that there will be more damage done. There will be two or three more happening. That doesnt mean airlines will be a great business again. There are so many planes and so much capacity. The world was flying at incredible rates it will take time before you see that pattern return. Not that it is just there. The Airline Industry will come back it is a question of what sort of damage is done along the way i hope so i cant drive everywhere. Taking a new shot. People keep telling me to get a treadmill. Im getting a treadmill. Thats not true. Send in a picture of yourself there, fatty you should stay off twitter yesterday teppers comments. After jay powell warning policymakers might have to use different weapons to the economy. Subject to significant downside risks. One weapon that isnt in the arsenal is negative Interest Rates. We chose not to implayment negative Interest Rates and we focus on Forward Guidance and asset purchases. We intend to continue rolling on those tools which are tried and they are now a part of your tool kit. President trump disagreeing with powell saying he still strongly believes the fed should have negative Interest Rates but his tone was a little less toxic than weve seen in the past against the fed chair that he appointed. Andrew meantime, i want to tell you about the Wisconsin Supreme Court because it struck down the states stayathome order as unlawful, invalid and uneven forcible saying the decision was a result of a lawsuit brought by the state legislature asking the court to grant relief in the rule making process. Saying their local stayathome orders will remain in place but you you are seeing lawsuits like this throughout the country and all sorts of other suits i dont know if you saw, there was another suit out there a court striking down the sba and their ability there are certain types of businesses that are limited and not supposed to get pay outs of ppp and pay outmon payout money like strip clubs. There are lawsuits about this and other things becky . Did you see, i think, the Washington Post said the Aspen Institute like millions even though they have a big trust fund set up. The stash that they have on hand technically, it is okay but that is the type of thing that will draw negative attention. This becomes the question, what are we trying to do here . Trying to keep people is this a full Employment Program . Can you pick your winners and losers i dont know, if harvard should have to give back the money, i cant imagine aspen shouldnt. I struggle with it. Really . The question is, what is the intend and how it crowded out others because it was a first come, first serve program. If you have a limited amount of money and taking that money anyway companies that have access to the Public Markets universities with big endowments, i would lump Aspen Institute in with that no by the way you could look at lincoln center, all sorts of not for profits out there that, some have, quote unquote endowments do they pay for everything this is why it is tricky on all sides. It is hard to figure out who should get the money and who shouldnt. The worst thing about it is in truth, the rules are not clear even this lawsuit with the strip club has proven even rules set up may not be legally binding. Well see. What is a hotel going for in as sp aspen, thats a sorkin spot. Their main location is in d. C. Picking its name is a pretty good spot. Thats your spot you are not a copper mountain. You dont slum with the normal people out there im a utah guy. Because of the snow or the amount of shredders out there . Both. Beckys husband is the type that tears up the mountains. We can only hope we can go skiing again we got to go. When we come back, President Trump taking issue with dr. Faucis warning to congress and reaction from dr. Gottlieb futures are under pressure in the last 10 minutes. The dow now down to 71 off about eight. Nasdaq up about three. Back after this. Feed a healthy lifestyle, with pure protein. High protein. Low sugar. Tastes great high protein. Low sugar. So good. High protein. Low sugar. Mmm, birthday cake. And try pure protein shakes, with 24 vitamins and minerals. News out of washington, President Trump taking issue with dr. Faucis testimony here is what he said about the warning about reopening states and schools too soon i was surprised by his answer actually because, you know, it is just to me, it is not an acceptable answer, especially when it comes to schools here is what the president said when asked if he agreed with faucis concerns. He wants to play all sides of the equation i think we are going to have a tremendous fau tremendous Fourth Quarter and transitional Third Quarter and i think we are a country ready to absolutely have one of its best years joining us now to talk about this, dr. Scott gottlieb former fda commissioner, cnbc contributor. Ill ask you the same question the president was asked, do you agree with dr. Faucis comments . I listened to dr. Fauci, i think he was answering the question about opening schools in time for a vaccine to be available. A vaccine wont be available in the fall it is too early to say whether we can reopen the schools in the fall it is not how the comments were implied ba implied based on my understanding of what dr. Fauci said well have to see in august whether this is still spreading in july and august what we should do in september there is some reports we could be seeing a new hot spot in texas and some other states, what are you seeing . I any some has been positive elsewhere, there are more challenging spots . Thats right, when you look at the data, you see steady declines across the United States even, when you exclude the new york region, you see steady declines i put out some of this data, you are seeing sustained declines. That said, you are seeing some states where cases are rising and hot spots within those states minnesota, nebraska, missouri, alabama, wisconsin, district of columbia, kentucky, tennessee and texas, those states you are seeing cases rising. This is what were likely to see even as the country comes down the curve. There is likely to be localized hot spots with outbreaks and states where you are seeing cases rise as the rest of the country starts to fall there is a diverse nation and different states doing Different Things and taking different risks. A piece in the new yorker, the tool or chairman of haven, the Health Insurance program put together by berkshire and jp morgan along with amazon looks like hes gone to chairman he talks about n 95 masks being the single most important thing that could be a game changer when you are wearing a regular mask, you are protecting you from me and when you wear an n95 mask, you are producting yourself if we could get everybody an n95 mask to wear ever day, it would be a true game changer how far away are we from that happening . I dont know what the supply of personal Protection Equipment looks like right now my guess is that whatever comes in to the market with respect to the masks is that is it even going to be stockpiled at the state or federal level for a while. For consumers to get access to masks will be limited. The kn 95 masks are coming in or the ffp 2 mask which is a european equivalent. The fda has published some of the kf 95 masks. No question that the masks do afford a level of protection consumers are better off wearing than not wearing a mask. The more protection the mask, the more protection theyll derive if you think about the cloth masks, a lot of them are meant to protect people from you they dont provide as much protection to you. The kn 95 masks are protective to the individual. The skoul opening has become sort of a met fohe for for the economy. If you dont have the schools open, you cant get people back to work. The teachers that are 60 to 65 are the atrisk group but kids in general are at far less risk. Now we are hearing evidence about could yokawasaki and immu issues now we are talking about bending the curve or whether we are going to shut down the country until there was zero cases of covid19 again right . Those are the two sides. The side that wants to reopen says, look, we never said there was never going to be another case of covid19 we said hospitals are not overwhelmed, well look back and see that point do you think the schools should open in september . If they dont, the economy is not open and you are back to how many people will have major problems not from the virus but from not having a job and not going for medical procedures the decision about schools should be made locally if the disease is epidemic within a state or community, the decision will be made to close the schools. I dont think this is a National Level with what we do in the fall this comes out of learning we have with the flu. When you shut down the schools in the flu, it shuts down the spread of the flu. We dont know what it is with coronavirus. We do believe kids are getting infected but we dont have data to suggest the rate. There was a study that showed that kids probably have about the third of sustain septemberibility than adults kids are getting infected but at a lower rate than adults part of this inflammatory condition does appear to be correlated because of the rising instance we dont know yet whether there is true coral relation. The evidence is suggested but we havent been able to prove that yet. Before we let you go, what would you do with your own kids . It will be based on what is happening in my own community. I continued to send my kids to school through february because we didnt have a local outbreak. Once we had a local outbreak in my community, the schools made a decision it is too early to say what schools will do in september we should attempt to reopen schools if this isnt spreading widely dr. Scott gottlieb, always a pleasure to spend time with you. We look forward to seeing you tomorrow thank you. Ly i will point out i read an article that kawasakitype disease is up 30 in an italian province a warning to tesla employees that dont want to come back to work we have that story next. Yes. The first word to any adventure. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. Right now, there are over a million Walmart Associates doing their best to keep our nation going. Because despite everything thats changed, one thing hasnt and thats our devotion to you and our communities. Our priority will always be to keep you and our associates safe, while making sure you can still get the essentials you need. Confident Financial Plans, calming Financial Plans, complete Financial Plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Welcome back teslas head of hr issued a stark warning to waecalifornia employees, if you choose not to work, you could lose Unemployment Benefits. If you choose not to return, you could be unfurloughed. Musk reopened the facility earlier this week in defiance of local orders there were reports that some of the employees being asked to come back being told if they didnt or were unable, they might lose these Unemployment Benefits this is a larger issue across the country, especially for people at risk being asked to go back to work and how they are going to be dealing with that and sometimes Uncomfortable Conversations taking place as a result i think teslas response was to blame the state elon will have to come up with a good answer a lot of people in that tribe, the reopening tribe see him as almost a hero in what hes doing. I dont know how long he could say you are going back to work whether you want to or not and maintain that sort of hero status how do you thread that needle . I dont know thats a tough one well speak with a congressman in california about this later too you are hearing this not just as a tesla story but across the country. Businesses that want to reopen are calling their employees. Some employees are gungho and feel like they can do it and others are morris being averse and maybe in a category they shouldnt be doing it and then there is pressure to do it it is a push pull. For a long time. The truth is, we just dont know enough about this virus, what underlying issues could create this or cause this. There are so many questions. Ive read questions maybe there is something genetic in the reaction which is why you see so many in one family die it creates a fear factor and how do you decide what is right and whats not it is hard to set the rules on it you guys are speechless. Well move on. Amazon will stop offering employees hazard pay and reverse to regular pay after this month. As the covid19 pandemic led to a boom in business this is risky. If you end it before it looks like weve come out of the other side of this amazon is particularly in the bullseye when it comes to washington regulators and more, i thought the move amazon made where they said they werent going to be profitable because they were spending so much more on them and safety is a smart one. But if you are pulling back from those too early, good luck amazon is in a pretty good position on all of this. Why we said they are sharply higher you dont have that delay, you dont know we are not talking for like 10 seconds. It is impossible it is tough. I dont have a delay with you. I hear you instantly andrew and i have a delay between us i dont know if thats good or bad look at cnbc how they are very sensitive to how we feel about coming in