Than a week. And in real estate, remaining a sellers market. That and more coming up. Good morning, good afternoon, good evening welcome from wherever in the world you may be watching. Im Brian Sullivan if you were hoping for another day like yesterday, you might want to get another cup of coffee things more se date. Futures are flat to slightly down futures are a little in the red. A far cry from yesterday where we had, in case you missed it, a 900point surge. That was that averages best move in more than a month. There is really three different pieces of news that gave investors peace to buy you had new numbers that show the fatality rate. Midto late march many states have reopened. Did not show big jumps in their new cases. Federal reserve chair jay powell, ill sum riz, the bank will throw an unlimited amount of money at the problem and Interest Rates are not going to move higher anytime soon hope around the vaccine moderna stock surging more than 20 yesterday. Shares up slightly today just off 1. 5 of the big rally later on, well show you who made a lot of money on that trade. It is not just equities moving up, it is oil. One month ago, we went negative because that may contract rolled into june today. A very different story youve got supply down 15 to 17 Million Barrels a day. Demand creeping up as people in the u. S. And other parts of the world start to drive again and refineries start to pump crude oil and gasoline our market and in japan entered yet another recession. Matt standing by in singapore with all the news you need to know good evening from singapore you are right, that optimism surrounding the virus really fuelling gains a lieutenaot of them up strongly japanese market up by 1. 5 we mentioned that data japan entering the recession the bank of japan will hold an emergency policy meeting on friday in the wake of that data we did get out yesterday we were watching earnings as well in japan. P panna sonic with a strop says that its tesla battery jv posted the Second Quarterly gain. Sony and sony financial. This is a big one. Shares up around 17 saying it will take full control of the lifted finance and tender off of 3. 7 billion. One sector that was a stand out in the region. Some of these travel related stocks the optimism around the vaccine, take a look at the performance of some of the airline names we saw the likes of asiana, korean, jeju air gains better than 10 and sharply higher on the optimism about a potential vaccine. We had the same thing here. Well show our viewers the same thing in just a minute now lets focus back here. More good news new data suggests that america is moving further in the right direction amid the outbreak. According to the financial times, there were just 786 new fatalities attributed to covid yesterday. Yes, that is still a big number and a lot of lost lives but the fewest number of people that have lost their lives due to the virus since late march rahel has more with us good morning. President trump is once again threatening to permanently end u. S. Funding to the World Health Organization in a letter to the group, the u. S. Listed several criticisms includes claiming the w. H. O. Ignored credible reports of the virus and accused of the organization of acting owe bead yan to china the president publicly revealing that letter. All of this comes after china pledged 2 billion to help w. H. O. Find a cure President Trump announced hes been taking the drug for more than a week this is a pill thats been used for a long time ive taken it about a week and a half hour and im still here he is in fact to the airlines, delta will add more flights in the plan to keep flights more than 60 full the move follows comments by ceo to investors that customers perception of safety will be key in the travel sector can you see that delta is unchanged. Rahel, well see you in a few minutes. Lets get back to the markets and futures. You cant expect 900point gains every day. Futures are down fractionally right now. This coming off mondays big surge. Most stocks did join in the buying as matt taylor mentioned the fund stocks are big winners and investors hope for the openings making more people willing to get back on an airplane, cruise ship, theme park look at some of these moves here yesterday. Spirit airlines up 25 , yesterday norwegian cruise lines 21 . Host hotels up 15 six flags up as well lets welcome our guest. Matt, it was sort of the fun stock optimism yesterday that played a relatively significant role what does you make of yesterdays Market Action that was not appearing at least until now through to today that was a good day you saw the internals on the market were very strong. A nice jump in volume. The breath was very good a much broader rally it took the s p slightly above on the side ways range about a month. If it can get any sort of upside follow through today or the end of next week, that will be bullish. At some point, the fundamentals matter i dont think well get that kind of follow through you think about some of these things with leisure names that did so well. Airlines are set up to run at full capacity. They are saying that things are going to improve but still wont run at 50 apacity that doesnt give you huge confidence theyll have a huge amount of follow through right David Calhoun saying a couple of weeks ago to the today show that he thought it was likely a big airline did fail it doesnt sound like he believed the carry through on big moves yesterday is likely . No. I just dont especially in the area like these leisure names. The companies are built for a different way. When the ceo of boeing talked about this, he didnt say they were going to go bankrupt. That theyd fail, theyd close they continue in the operations. When somebody like boeing makes that kind of comment, you have to Pay Attention you really do. When it comes to the overall markets, this is kind of unbelievable checking it out and with all these big moves weve had, weve effectively gone nowhere on the s p. Big moves relatively where we were anything showing we are in some sou sort of positive basing and perhaps getting set to make another leg down what are you seeing there. As i mentioned earlier, if we can break out of the average just below 3,000 that will be bullish the market was priced forp perfection any time theyve been able to come in and fix both market problems this time around, theyve only been able to stabilize the markets. With all of the companies sitting at so much debt, record levels of corporate debt they need revenues they need those if they want earnings to go back to what they saw in 2018, 2019, which was already priced for perfection. It will be tough for the market to rally a lot from here point taken we are watching those reopening states so far, not a huge jump. Like you, im working hard on my mullet oh, geese have a great day, buddy mixed signals from u. S. Housing market some areas seeing a buying boom while millions of other people have stopped paying their mortgage the nasdaq reportedly rewriting rules to list and potentially singling out the companies from jay powell, steven manu chick, evanka trump and tim cook, it is an ee interestin g day. And more from jay timmons after this it nourishes and strengthens my joints for the long term. Osteo biflex. Plus vitamin d for immune support. Osteo biflex. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Good morning like so many other things, even the Housing Market has broken down to two distinct camps as many as 4 million American Families have stopped paying their mortgages. Real estate firm red fin says some markets like d. C. Are so hot, they cant meet up with demand diane will take it away as i promise not to say real estate and red fin in the same sentence it is good. We do need more inventory. Well get the Housing Starts later. But april may be the worst of it the expectation is for housing prices to drop 26 permits which are and indicator of future construction are expected to fall 27 builders were already seeing a turnaround in demand by the start of may according to ceos and Quarterly Earnings results after the sharpest onemonth drop, Builder Sentiment opened up pointing to record low Mortgage Rates and supply for existing homes for sale the etf closed up nearly 9. 5 led by names like kb home and pulte group. Moving above average for the first time also easier to sell a newly built home compared to existing homes. Because builders have models existing home sellers dont have that option until the home is empty. They are seeing high demand from current renters looking for more space and new space no one else has lived in this is not to say the Housing Market will not pop back to where it was but economists are looking for Home Builders to lead the economy into recovery, brian we just need more homes whether or not thats a new build or deciding somebody will sell whether here or there in d. C. , they want kids to have a yard they dont want to see a fall resurgence, they want more space. We need more homes for sale. Absolutely. Even going into this year before this happened, we had a record low supply of homes for sale demand was incredibly high we had a Strong Economy and low Mortgage Rates we have millennials who waited lo longer to buy homes and were flooding into the market that demand that is pent up will come out we do need more homes. Is it going to be all the builders weve had all the layoffs and weve not ramped up as much as we thought they would. Quickly, what are you hearing about mortgage available if you have an 800 credit score, youll be able to get a mortgage it is loosening up. It was very tight. You talked about the forbearance numbers but it is loosening up slightly we are hearing that from the builders good news for housing in some parts and touch for others have a great day thank you. Coming up, how tiktok is taking a page oust dez anys playbook and taking a disney executive along with it. Announcer todays big number, 30 . Thats how many of its stores jcpenney will close as part of the bank rruptcy plan. 200 stores this year welcome back and good morning. Dow futures were moving with a little bit of steam. Futures coming off the best day in little more than a month. Well keep an eye on that. Speaking of dow components, a big shake up at disney disneys streaming boss is leaving to become the ceo of tiktok once considered to be a candidate for the top job at disney but says this move has nothing to do from being passed over for bob chapek. Disney has named Rebecca Campbell to replace meyer. Owned by the Chinese Company bite dance hell also become the chief operating officer for bite dance as well. Speaking of china, the nasdaq is planning to tighten rules which could make it more difficult for Chinese Companies to list their stocks on the nasdaq reuters says the rules would require countries to raise some 25 million minimum in their ipo. The rule is not directly targeting Chinese Companies but comes after lucken coffee disclosed some had issues of sales. Other Chinese Companies have been d listed or closed up over their reporting. When we return, huge testimony taking place with jay powell and secretary steven mnuchin. And secondly, will the crisis help u. S. Manufacturing by bringing the supply chain back home well ask our guest when he inusft ts. Communities of color have always been underrepresented in the u. S. Census. That means less federal funding for schools, hospitals, libraries, and other Public Services for Diverse Communities and less representation in congress. This year, its critical that you participate in the 2020 census. Its safe and confidential. Lets make sure everyone is counted in our community. For more information, say census 2020 into your x1 voice remote, and to participate, go to census. Gov. After a 900point plus surge, will buyers keep coming in money man heading to the hill virtually, that is said to be grilled by lawmakers on the economic response to the pandemic and the lockdown. Home depot and walmart results on deck as a busy week of retail haves and have notes kicks into high gear on this tuesday, may 19 this is Worldwide Exchange on cnbc welcome back good Tuesday Morning to you. Im Brian Sullivan it is a very busy day from wall street to washington lets take a look at the stock futures, coming off yesterdays rally of 900 points for the dow, the best gain in more than a month. A fairly broad based rally airlines, cruise lines, things that involve Economic Activity were some of the biggest winners as well. We continue to drive more. Crude oil prices are up again this morning as well we are seeing that june contract roll to july today a big difference between now and a month ago because a month ago today is when we had that negative 40point print on Oil Contracts as they said there is nowhere to deliver that oil. Ill pay to you deliver that weve seen that demand come un that stock of the day could be from yesterday is moderna. Giving back a little bit with a 20 rally on up beat results from the phase one test and trial of its coronavirus vaccine. Moderna announcing a 1. 25 billion stock sale after the close that could add a little pressure to the stock more things out there, more available of equity. You might see prices soften up a bit. With yesterdays big run, the question is who made money there is fidelity and van guard. Harvard professor tim springer by far and away not a house hold name still a professor in harvard now the single largest individual share holder. After selling his First Company decades ago, the initial investment of 5 million he now owns 15. 5 shares according to data. With the move, that 5 Million Investment is now worth 1. 4 billion with a return of 28,000 and makes the harvard professor a billionaire. Now to washington with a busy day there. Youve got treasury secretary and fed chair on the hill, virtually. They will discuss the dispersement of hundreds of billions in Coronavirus Relief aid. The members of the white house work force policy Advisory Board set to meet today, entirely on line for the first time. Evanka trump will lead that with apple ceo tim cook, and jay will join us in a minute. Let us begin with that Powell Mnuchin testimony and what we can expect elon fromwid. C. With more a major focus is the massive new lending that was thoauthorid not just the 670 billion but also the 500 billion in the Exchange Stabilization fund that includes programs to support small and medium sized businesses state and local governments, airlines and corporate debt. It has written testimony that fed rates will remain near zero. They are confident it will weather the storm and use all of the tools available to it. It is worth remembering that the measures taken to contain the virus. We should do everything we can to provide relief for those suffering for the public good. You should expect lawmakers to push back on why a lot of this money appears to be held up only 37. 5 billion of that 500 billion fund has been dispersed so far treasury secretary mnuchin will argue that 200 billion has been spoken for and thinks the economy will start to get better in the second half of the year this will be oversight hearings, as you mentioned, no one will be there in person, this will all be conducted remotely. A virtually meeting with real money. Have a great day big day on capitol hill. Lets turn to the other big event in washington. That is the Virtual Meeting of the Work Force Policy Board led by evanka trump. The National Association of manufacturers jay timmons. What are you expecting to hear from that Virtual Meeting. What do you want to hear from that meeting today i think what we want to hear is that we are in a new phase of this crisis. We are in the recovery phase first and the renewal phase which is coming up, which means we are going to see this economy coming back. What does that mean for manufactures in particular it means we have to have skilled workers. Even with all of this horrible unemployment producing the way we will be soon, well need skilled workers to get the job done that has been the focus for ivanka trump it has been the focus to see the right skills to have our economy be the most productive ever. I understand how difficult things are out there in america right now with random shut downs and job losses my wifes company, they are trying to get someone done which requires switching manufacturers. We are in the middle of it around the dinner table. Do you see this driving what was happening during the trade war with a bush to restructure the supply chains out of asia and back to the United States . Could this be a longterm positive for manufacturing through all this pain . I think there is a longterm imperative it was like an auto accident, something you didnt expect. We were in a response phase to do anything you could to make sure the patient was still living now we are in a recovery phase now well do the right thing and take a moment to remind everybody to protect front line workers by wearing a mask wherever you go outside. It is very, very important renewal will focus on what are we going to do to strengthen americas economy. Bringing facilities back to the United States and investing in the United States like we were with tax reform and investment reform before this hit thats what we want to see in this country we can start to see much more growth in manufacturing as we get to the renewal phase we have a plan to do that. We have to start with Health Care Equipment you read these Horror Stories of fake n 95 masks. The masks doctors and nurses rely on to keep them healthy and alive. Health care is one thing, also talk about just making sure people stay trained. If you lose your job a couple of months, the longer you are unemployed, studies show, the longer you are likely to be employed because you lose skills in manufacturing, things change all the time. We are a very adaptive industry. So as new technology emerges and new types and processes emerge, we have to make sure our work force is trained in the skills necessary to do the job. It is what evanka trump is focused on we can do that in a multitude of ways there are many pathways in the country. We have to make sure we have the opportunities available through Technical Schools and Community Colleges and other types of training opportunities thats what well be focusing on today. What do you want to see long term if there is one thing we can ask for for the next decade, jay, what would it be i think it would be a continuation of smart and sensible taxable policy. We saw what that was doing to help super charge before this crisis that was good in a down economy as it is a roaring economy we have to make sure we stay focused on making sure manufacturing is competitive in the United States so that we dont have this problem in the future if we have god forbid another crisis like this people always ask what do you want to bring back to the United States if i had my way, everything would be made here in the United States thats not practical 95 of customers are outside of the United States. We want to make as much as we can hear and have manufacturing rooted in america. I never thought about it before this, i wonder if the major pandemics in 1950s were just as dangerous as this one if they influenced that Manufacturing Policy in the 70s we all talk about so much. Thats for another show. Good luck today virtually. Thank you, brian. Good to see you. You as well lets talk more about the markets and recent trends we are seeing with this and eek followic policy. Welcome in our guest and cnbc contributor. Good to chat with you good good morning. Good morning. You heard jay timmons talking about that is there any investment play if supplychains come back to the states is there any theme around that or is it too broad probably too broad. I think you can do that at the really granular level. You could look industry by industry and say, does this make sense to return. We are invested in taiwan semiconductor. Maybe you can look at opportunities like that. I dont know at the level right off the bat those opportunities there. It will be there for sure. For enlisted companies that get the benefit of the warm, fuzzy u. S. Feel when they announce the factory there i dont know if you heard about this, the dow went up 900 points was that a major turn or a oneday pop because we had some positive data around vaccines and new numbers around the virus . We thought about this if you reflect back to maybe six weeks ago, the market was up and faded about 5 in the following days this ultimately will be a cure i do think we see a very emotional market i do suspect a data set out of this. In july, when we expect the phase two trial to come out. Latching on to good news and freaking out over bad news you were talking about the market being flat since april. I think thats healthy what the fed has done is put a floor on it. I feel better about seeing it flat than if we were up, up, up or plunging down flat seems like a nice way for price discovery to come to individual stocks if they start and stop in this place, what is the way. The huge bounce back, hard to believe. The markets have done this ultimately to your point, that consolidation. Lets find a base and take a breather that can often be a longer term positive right i agree. Building the base, right what are the best stocks and best place in the market with which to build that base sure. I think what is interesting is how wide the disparity is between the haves and the have nots those will be driven rather by the ones where you have lagged they actually reported earnings that were quite decent and saw continued strong cash flows. Those guys might continue to come up. Companies like American Express trading at 13 times earnings pfizer, Verizon Trading at 13 times. Master card at 37 times. Black rock at 19 times multiples. I think those lower multiple stocks that have been the have nots will start to build ideas in Companies Like ibm or smaller ones like unicome which i added last week, or sea gate these have multiples way below the market i think as this base builds, those could start to see some expansion and depression start to cement under the market further when well start to recover and see a real next leg up youve got a big base jenny herring ton. Have a great day talk to you soon coming up, perhaps the only data that really matters that is how are the states that are reopening doing. We have a new tool to show you how states are doing from new jersey all the way out west. A map you sllee for the first time coming up next. Stick around this is a tempurpedic mattress. And its mission is to give you truly transformative sleep. So, no more tossing and turning. Or trouble falling asleep. Because only tempurpedic uses proprietary tempur® material. That continuously adapts and responds to your body, to relieve pressure. So you get deep, uninterrupted sleep. All night. Every night. The tempurpedic summer of sleep starts now, with all tempurpedic mattresses on sale, and savings up to 500 on adjustable sets. Welcome back lets bring now a new tool in the fight of our understanding of the coronavirus pandemic and economic ockdowns. This is a unique way to gauge ways they are progressing. Some are reopening others primarily locked down this chart is a look at the sevenday trends against the previous sevenday trends against the growth you can see the dark blue states like new jersey are the ones seeing a big drop in cases they are down about 25 week over week. Other states more in the red, primarily in the south and upper midwest are those looking at reopening and some seeing a jump in cases week over week. Take a look at arizona and florida. That light pink color in the carolinas. They are only seeing moderate new case growth despite the similar testing trends certainly data like this could reinfluence the reopen policies. Well bring this to you as often as we can. Sticking with that path forward, new york city revealing it could potentially back in business rahel back with that so the mayor says new york city isnt ready just yet but could begin opening the first half of june fingers crossed. Theyve only met three of the state Health Requirements to reopen in california, the state is relaxing some reopening. Professional sports could begin in june but without spectators retail sales in the u. S. Could fall 6. 5 this year according to Research Company those likely to struggle the most include apparel retailers and others square will allow its employees to work from home permanently even after local shelter in place orders are removed can you imagine never coming back to the office i could not i enjoy the office i miss all my friends. Youd never see my glowing face again. That would be a disaster. A terrible way to start the week it is good to see you even virtually. Tell everybody hello we are moment as way from big time earnings out of home depot and walmart, two stores seen as big beneficiaries of what has been going on here to talk about the numbers now versus how they may look in six months by the way, if you are one of those people starting to get back on the road a bit, you can always get your ctfiion the cnbc app. We are back after this so good. Oh hey, did you say you needed help with investing . Because i know someone whos really great. And you trust him . Totally. Yeah. We went to school together. Ill check him out on investor. Gov. So, whatll it be . Ill just have the burger. Before you invest, get the full report. Check out an investment professionals background for free on investor. Gov. Before you invest, investor. Gov. Jimmys gotten used to his whole yup, hes gone noseblind. Odors. He thinks it smells fine, but his mom smells this. Luckily for all your hardtowash fabrics. Theres febreze fabric refresher. Febreze doesnt just mask, it eliminates odors youve. Gone noseblind to. And try Febreze Unstopables for fabric. With up to twice the fresh scent power, youll want to try it. Again and again and maybe just one more time. Indulge in irresistible freshness. Febreze unstopables. Breathe happy. The challenge for a lot of the retailers, the big boxes in particular is can they continue to go on the way they have been going on the costs theyve had to put in place in order to stay open will be their challenge how does that all look that was former walmart u. S. Ceo here yesterday talking about the huge traffic many stores like home depot, lowes and walmart have seen as they have been the only stores that have been able to remain open getting a first look at those challenges when home depot opens its books soon lets get a check on how home depot might look to our guest now the only stores open, they are deemed essential everybody seems to be doing Home Improvement projects what do you expect from the guidance good morning. We are hearing outstanding numbers for both home depot and lowes. People are doing a lot of projects in their house. We could see numbers that are historical in a lot of ways for both names we have comps up 5 . We think those will reasonably beat those numbers in terms of guidance, it is going to be hard for either company. Home depot starting and it will be hard to keep guidance for the full year. Most retailers are pulling their guidance it is difficult to have visibility in this marketplace we think it will be really reasonable to pull this guidance the big question is the unemployment rate. The lasting implications on the rate if it stays elevated. We have home depot and lowes slightly negative. Negative next year in 20 21 because of strength this year. Difficult comparison if they pull guidance, matt, is that a reason to dump the stock if you own it or avoid it . No. I dont think it is a reason to dump the stock our checks so far are saying both names are doing even better comp sales Second Quarter to date than first quarter. The trend looks like it is Getting Better the problem is the back half of the year and going do 2021 because we dont know the economic damage and what that means for big ticket purchases like kitchen remodels and things like that. They think it is likely not in their best interest. Peers are pulling guidance some names have Visibility Like nike theyve pulled guidance. We think it is reasonable but not necessarily a bad thing because trends are Getting Better right now among your coverage universe, what is your best bet for your clients . I have to say target. They are going to report on wednesday. The way i would frame this is how you would frame this you said todays big number is 30 . That decline of stores of jcpenney where target has been getting their market share and amazing results. Now it will accelerate because jcpenney will close stores you talked about pier one Closing Stores right now, target is doing well. They could do even better next year simply because of consolidation and market shutdowns. The benefit of others in the jcpenney trade never thought of that. Those shoppers will need somewhere to go. Likely to go straight to target. Those numbers likely to be big target on wednesday. Those home depot numbers about re bak dow futures down 50. Well see you tomorrow take care. The return of drifting drafting the return of the slide job ripping the wall gasngo bumpnrun the return of loud nascar is back, and xfinity is bringing you the best seat in the house. Good morning stocks under some pressure after yesterdays 900point rally for the dow. Two dow components home depot and walmart straight ahead reopening america. Well show you what yesterday was like for auto workers in michigan and gamblers and fitness buffs. President trump again threatening to cut off funding for the w. H. O. And revealing, hes been taking hydroxychloroquine the reaction from dr. Scott gottlieb it is tuesday, may 19, 2020. Squawk box begins right now. Good morning welcome to squawk box on cnbc. Im becky quick along with joe kernen and andrew ross sorkin. As joe mentioned, we are seeing a slight give back dow indicated down 84 points yesterday, the dow up by 911 points you saw the s p up by about 90 points a gain of 3. 1 . The nasdaq up 220 points for a gain of 2. 4 all of this after the news we heard from moderna well talk about that and the success they are having for th
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