Basket size and looks at the issue of what happens when you are able to open and a lot of your competitors are not right i think Doug Mcmillan has the four stages of, lets say, the opposite of grief and acceptance its more like acceptance and euphoria at the beginning theyre stocking up. By the end theyre buying tvs. He laid out a course that i felt was very, very optimistic. But not that optimistic for anybody who competes with him. When you hear what hes winning in, its every category that the Small Business guys do its the bicycles. They have the good tvs going boutique games owns all of that now he owns video games now. There wasnt anything that i heard that did indicate that you go to walmart instead of a Small Business david, doug was very interested in the fact that you bought your pullup bar there, that you might have gone to a gym, but you took that order from a Small Business guy and you gave it to the king yes, i guess that is true the power tower, it wasnt cheap. But its difficult to find anything in which to do exercises at home as you both probably know. Everything was sold out. We talked about how this crisis will change behaviors and what this will look like as we get to the other side not just in the workplace but overall. Certainly how engrained is it going to be for people to go to walmart. Com or target. Com. You look at that, 141 comparable Digital Sales increase at target for the first quarter. Or walmart to the point youve been making, how much has traditional retail lost and will be losing more as they get to the other side of this given the changing behaviors. Obviously people like this idea of ordering and then coming to target and having a guy put it in your trunk you never have to touch anything youre at home rather than next day amazon, its right there its one of the ways to get goods. But what is the little guy doing . The little guy is closed sudden will you you have this new allegiance to target online. Some are worried that the apparel, they didnt make a lot of money on apparel. What Apparel Store thats closed can compete with someone who has good private label apparel for good prices when youre not going to work and needing good looking clothes. This is the moment for these stores it will never be this good again. What theyll do because of the way that nonessential stores had to close, they will be able to leverage the fact they sold food at target and theyre crushing it i know some people think this is not a good number. To me, they are building on this this is q2 he spent a fortune on making this work. Its working those who dont like the stock like the last time when he reported stock at 112, people didnt like the margins, it went to 106, then where did it go it went to the moon because who can compete against this if you want something that day . Maybe walmart . Thats it . Thats it. How do you like being deemed nonessential mcmillon talking about the level of hiring theyve done a lot of that hiring coming from people who worked at a hotel he said but also from other retailers. Jim, when you think about the costs that walmarts paying in covidrelated expenses, this number from target, which is not exactly comparable given the different timeframe, and given the less competition, whats to keep them from completely controlling pricing and categories where its hard to find goods any way nothing nothing. Special payments, youre getting employees who are compensated well costco, which probably has the best of the compensation, but very few people can keep up with these prices you cant. This may have ended up happening one day, but there were always Boutique Stores that could survive. Now those stores lost a base of customers. As you say, a base of workers. They were the people who might have known the customers the big guys won its not the fault of the government unless you think like i do that this nonessential tag seemed very wrong to me. But it happened. Its over. The big guys won fortunately theyre fun to shop at i like going to lowes i have a good lowes near me it used to be not great, then Marvin Ellison fixed it. He must have gone in there personally its so good. Walmart is a great place to shop now. I like it. I just bought a tv at target right in the trunk no touch no touch i like that. To what extent as well are these retailers in position given their size to take on the additional costs they have to make their stores safe and employees safe were looking at that 5 500 million commitment that target says extended benefits for team members and Safety Measures put in place, and home depot what was the number, 800 million yesterday . These are significant costs that not every retailer is in position to bear you want to put i once tried to buy a piece of plastic at lowes. I told marvin they werent that helpful, Marvin Ellison on mad money, and hes on tonight. But if you want to buy plastic, plexiglass, you are in control if youre walmart. The price you can get is probably the lowest imaginable if youre a retailer with four stores, i would rather go to one with plexiglass. Its about protecting me a fourstore guy trying to put in plexiglass will wipe out that months profits. This is scale winning. The people at home may not understand the changes these Companies Made for you are simply too expensive for the smaller guys to do one more reason why the smaller guys will be buried. They have to have an online presence, a facebook shop in order to be able to bring in some money the mcmillon interview covered the gamut. He talked about sporting, crafts, the hiring process in this pandemic and also talked about Liability Protection and what needs to be afforded to businesses as they do reopen take a quick listen to this. I think that debate should happen and some level of suppor should be provided nobody in this country wanted this to happen its a virus that has spread across every part of the country. We just need to Work Together to try and create a safe environment for businesses to come back online in every way. I think some form of Liability Protection for them is a piece of the puzzle. It sounds like this will be part of whatever mcconnell, schumer and pelosi can put together if theres to be a phase four rescue package. Mb docdonalds got sued yesterday, workers too close together this is a going to be a common refra refrain. This is going to be a remarkable personal injury bull market. That stock will probably have a 40 pe or a 50 pe. Those guys will make so much money. How did you know on february 23rd unless you were me and crazed that you would have to change the whole world because of something that happened that you cant see . The lawyers have to make it they have to try i dont know how they did the last couple of months, how else will they make the money i have to admit, the big guys to some degree, they were exceptional during this period they sold one thing that Doug Mcmillon said is they sold in two, three hours what they usually sold in two, three days for disinfectants, grocery staples, surface cleaners. The little guys could never do that at least they helped you as a consumer they brought prices down as a consumer you have to Love Companies that brought prices down, competed against each other for lower prices, against amazon, which we have not mentioned. If theyre going to get sued for doing what we want them to do, i think they do deserve protection david, you pro plaintiff bar there . Not talking . No. No i think youre right to point out it will be a point of contention in terms of phase four and whether you get it. The democrats are in support of a 3 trillion bill that will bring a lot of needed and necessary aid to the states, which are obviously yelling and screaming about huge budget shortfalls but this idea of extending a measure of protection to businesses when it comes to litigation is an important one its one that would be embraced by the republicans will we get there . Thats the key question in terms of additional aid being apportioned particularly for the states, guys, which continue to say if you dont get it to us, there are going to be a lot of layoffs coming in our work forces the states are pretty broke the hospitals are totally broke. I was speaking to mr. Sperling at mass gen. Hospitals werent allowed to do the surgeries they made a lot of money on, the socalled elective did you know brain cancer was elective in the end at mass gen . Brain cancer thats how badly this scourge that a lot of people seem to forget in the south impacted the north. There was a there was a big annual beach party in texas, not only did people congregate, but it was like they were trying to distribute covid people feel if youre under 30, covid is not a disease its something shoe read about i dont know yeah, youre talking about galveston . Yeah. I didnt want to mention it by name then everybody in galveston will hate me then well get into a logans run issue. You know that, right i remember that you do . I think you were a toddler the elective surgeries rely on the big profit margins, those disappeared, and many people put off things they need do for their own health so there is a question as to how many people will be negatively impacted by not dealing with those things there was a 30 decline in the number of cancer diagnoses in boston. Do you think cancer declined by 30 . No, they didnt go they were afraafraid big implications for huge medical giants like j j which is in the news for other reasons. Well get to that. A lot of airline news. Well cover what united told phil lebeau this morning and vaccines as we got that reality check there stat news. Ngoway. Usaa was made for right now. And right now, is a time for action. So, for a second time were giving members a credit on their auto insurance. Because its the right thing to do. Were also giving Payment Relief options to eligible members so they can take care of things like groceries before they worry about their insurance or credit card bills. Right now is the time to take care of what matters most. Like weve done together, so many times before. Discover all the ways were helping members at usaa. Com coronavirus will it be familiar streets . Or perhaps unknown roads . Wherever you may go, lexus will welcome you back with exceptional offers. Find a lexus for every road at lexus. Com. No payments for up to 90 days on all 2020 lexus models. Experience amazing at your lexus dealer. 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. Welcome back were keeping a close eye on efforts to develop a vaccine for covid19 as that race continues and intensifies, drugmakers are forming partnerships to combat the pandemic meg tirrell joins us now she has more on that story meg . Hi, david if these companies are successful in developing a safe and effective vaccine for covid19, the next challenge is going to be manufacturing it on this massive scale enough to potentially supply the world. In order to do that they are forging these partnerships look at what some of the Biggest Companies have done so far j j partnering with Emergent Bio Solutions and plans to get to a billion doses next year. Moderna and lonza partnering pfizer and bioentech getting together a lot of these companies are depending on a segment of the market we almost never hear about. Contract manufacturers this is a large and growing portion of how our medicines get made in 2018, pwc estimates they brought in about 99 million in revenue as an industry, but predict that will grow to 160 billion by 2025. These are Companies LikeEmergent Bio Solutions and lonza. I was talking about these challenges, and they pointed out a couple of questions. One is that a lot of these vaccine technologies are brandnew. Theyll be building the scale as they figure out the technologies the second are supply chain concerns our ability to manufacture at scale is only as strong as the weakest link in the supply chain. We talked with lonzas ceo about what keeps him up at night this morning on squawk box. Heres what he told us what could go wrong and create some delays is having access to the equipment. We are building new plants, new manufacturing plants with specific treatment, and this is the main reason why we could be delayed in our plans though they do have funding from barta to moderna, almost a half billion, and moderna did that Stock Offering on monday of more than a billion dollars in stock which they say they will apply towards manufacture ing a distribution, the lonza ceo said they will still need more funding. Moderna, 1. 25 billion raised for that company yesterday in the markets itself as the stock shot up monday what do you make of sort of the focus on that eightpatient study . Are we seeing things that we typically wouldnt see in Drug Development because this is such a unique time and therefore we have to kind of give them a little more room, a little more wiggle room in terms of what theyre seeing we are definitely seeing things we wouldnt normally see. This situation is just fascinating. That small number, the eight patients, that is earlier than we would see for phase one data. Scott gottlieb this morning on squawk box brought up the timing of the operation warp speed press briefing on friday where the leader of that operation, who at the time was on modernas board, indicated he had seen data that made him even more confident we would have a vaccine by the end of 2020 so theres some speculation including cited by gottlieb this morning that moderna had to report the data out because there was that illusion made to it on friday maybe it was earlier than they normally would report. Guys, i did reach out to modernas ceo upon seeing this stat news article yesterday to get his take on it one of the points in the article was that it was a small number of patients, eight patients. He acknowledged that and he said they pointed that out as well. The other question thats come up a lot is why the National Institute of allergy and infection diseases, dr. Faucis organization, has not acknowledged the data. He pointed me to a tweet from Vice President pence who did say he talked with fauci about the data in a briefing and he was very excited about it. So, there are so many questions about this, guys its not a normal situation at all. Meg, i think the biggest problem and what offended most people was that a lot of younger Companies Like moderna do this, its a curious disease of premature explanation something that said they dont really deserve to be able to put out anything that was promotional, or be promotional, because they did blanket the airwaves i believe it would have been good for them to say you know what, i want to be clear to everybody, we need the money to go to the next level the fact that they didnt volunteer it a lot of people are mad we didnt pry it out of them sure, i like to ask these questions all these Young Companies what will you do for money . Typically they say, we cant talk about it or, you can imagine what we have to do i would have preferred if they provided that information too. But i think you just can explain to us that its not necessarily when they say 8 for 8 that they had to do that, but it would have been good when they did 8 for 8 which is way too small means nothing. For all we know, theyre all 23 years old and cherry picked, it would have been good for them to say, hey, our stock is up a lot. They are the largest now in that particular index remember, we have to fund our company, had they just done that people wouldnt begrudge them so much yeah. Though i dont understand all the financial disclosures, but if they could they have said in advance that they were planning on raising money through a stock sale based on the data i think theyre in a complicated position a lot of us were probing why havent we seen the phase one data yet when we knew they got the go ahead from the fda based on safety to start the phase two. Then they did report what they had, now theyre being criticized for reporting so little data. Its just very hard for these companies to know what to do one of the things that when youre in doubt, just tell just say we passed phase one there was no need to give more detail once you give some detail, you have to give all detail. Meg, thank you. Well be following it closely. Were back on squawk on the street. Ayitus 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. Lost steam going into the final minutes of trade but looks to get most of that back this morning. Futures indicate a 300point pop at the open. All right. Three minutes until we get to the opening bell lets squeeze in a mad dash. Analog devices on the radar today. Why . This is a 40 billion company, david i created this cramers covid index, it is trying to replace socalled s p 500 because theres so many Zombie Companies now in the s p 500 analog is a company that makes devices that go into everything, not just theyre not cell phone. Theyre not focused on that. They have a robust business that they do in medical equipment they also do a lot of lighting a lot of sound their chips go everywhere. Industrial chips they had an amazing quarter. A great supply chain, they could produce everything they need the diversification made it so they did far better than people think. Once again, heres a company, you would have expected them in a recession or depression that they would be doing badly. They have a great book of business, they had a fantastic quarter. Fantasti fantastic. Yeah. Important parts of the economy, no doubt about it. How Many Companies do you have in that covid index of yours theres a lot. A hundred its a hundred. Yeah. We wanted to