Production creeping back to life Mother Nature forcing nasa and spacex to pull the plug on their launch you are watching Worldwide Exchange here on cnbc good morning welcome from wherever in the world you may be watching. I am Brian Sullivan. Thank you for spending your thursday with us here on cnbc. The stock market has been read hot. The dow has been up over 1,000 points in the last 48 hours. Making huge strides in gaining back much of what it lost and it could gain back more today dow futures are up another 140 points not the kind of market we saw in the last two days. It looks early but a little follow through again could happen today we know the dow has done well but did you know this. Small caps are reacting big time the small cap s p index is up 8 this week. And it is early. There are a greater number of stocks in that index up more than 20 this week than have fallen this week up more than 20 trading more than any amount this week. We have more of that at 5 30 we are going to show you, if can you guess it, you are smarter than we are because it is a name that no doubt will surprise you. Well get to more on that in a bit. We have that breaking news out of china short time ago, lawmakers in beijing endorsing that controversial new law that has sparked protest there and is growing condemnation among Global Leaders well get to more on what the Chinese Parliament just passed thank you, brian. It is not such a surprise given what they have described as rubber stamped 2,878 who voted in favor and what one, brave soul who voted against. The vote means that beijing is now moving one step closer to having tighter controls over the city what happened is that the top officials will work out the laws as early as june with the goal of prohibiting action. It will allow for agencies to be set up in the city there was a tweak on tuesday in the proposal which expanded the cope of what could be defined as actions that endanger National Security from beijings perspective, this has been a long time coming. A lot of people have been saying the government has been losing patience from hong kongs perspective, the protesters and people there are quite concerned about what this means for their Civil Liberties and the rule of the city eunice, what are the next steps . What is the time line . In terms of the next steps, what happens is that the top lawmakers here in china will be working out the details of the law. That could come as early as this summer in terms of what happens next more broadly, more people are watching to see what the u. S. Is going to do. Secretary of state mike pompeo said that hong kong is no longer autonomous President Trump earlier said the u. S. Is going to do something on the hong kong issue this week. There has been a lot of speculation and i would say fear on what this means whether the u. S. Will pull its trading status, the special preferal relationship it has with hong kong and what other sanctions could happen in terms of visas and freezes on transactions. A lot of people are saying in the manufacture sector, which is big in hong kong they are worried about higher tariffs they have a lot of manufacturing that use hong kong as export hub. This is american and european companies. People are worried about what this means for the way they do business supply chains there maybe restarting again thank you. Back in the united states, a rather grim milestone amid the coronavirus outbreak there are some signs of open lets get to top news stories with frank the death toll in the u. S. Has surpassed the 100,000 mark significantly more than any other country in the world the white house advisor dr. Fauci is saying the second out break could happen glachl skoe saying it may produce vaccine booster next year boeing resumes 737 max production after halting production in january. After boeing revealed it will layoff 7,000 employees this week arizona is suing google over user data practices. Stating it has taken deceptive steps. It argues the company set up android mobil software in a way that deceived owners about the protections of their personal data brian, back over to you. Frank, well see you in a few minutes. Thank you. Lets get back to the markets that have been read hot. The dow closing back above that 25,000 mark for the First Time Since back to march 6. If youve been keeping track, the dow has gained back just over 2 3 what it lost a midst the vie rarus break down midmar. Getting to dan wantrobski, thank you for joining us here on cnbc. What do you make of this rapid rebounding owe in equities has the market already priced in the rebounding expectations or do you think there might be more for equities caller good morning. I think you hit the nail on the head, you talked about small caps really coming back to life. That really happened this week one of the things we were concerned with prior to this trading was the divergence in the market you had in the lows really distinct leadership. It came from the large cap in technology, health care and consumer what happened in the coming weeks was really concentrated in those areas. A couple of days ago, we saw breath and participation improve significantly. That pushes up the small cap 600 and you look at the russell 2000 and the nyse composite close to the 1,900 stock. This calls for the retracement this sets us up well for the short run. In terms of not necessarily new leadership but new groups participating. We are seeing industrials, transports we are seeing banks rally upwards of 15 , 14 . Breath and participation is starting to increase and pushes us up over the short run in the coming months, we are of the opinion we could see larger pull backs and you could see returns of volatility. Our stance is that the lows of the Market Correction cycle are in in the direction of march 23 on 2,200 s p, you could see bigger directions so far we are looking at the pull back in the months ahead. We would be buyers okay. But pull backs will come here is the thing. Even if you are the most optimistic we have heard with vshape recovery jp morgan came out with the best case recovery. Nobody has predicted it would go back to 3 and 4 unemployment. The market seems to be reacting like we are going back to a normal nobody is talking about that even a year out. What do you see for the long run . There is a lot of economic pain even if we start to reopen in the next months . Thats why we are factoring in any correction around 8 to 10 . What is going on here is a disconnect between the market and reality. Markets trade on sentiment and perception of future events. Right now, specifically, massive amounts of liquidity have run in we know Fiscal Relief measures have been enacted. There is more to come. As you say, the economy continues to flow. That status will get worse theyve created a playbook off the 08, 09 crash i believe this will continue to stabilize the market as this comes in worse our opinion is that the bottom has been formed. The lows are in. Beyond that, as the economy slowly comes back on line. I agree it will take years we think the amount of liquidity is too much relative to the demographic profile in the u. S the secular bull market resumes in the next couple of years. There is a big picture under the story. Liquidity is a driving force dan, a longterm Millennial Market that says be wear of 8 to 10 corrections. Best to you and yours. We are just Getting Started here when we come back, more on the china approval of that controversial law that could quash free speech and what it might mean for escalating tensions and Mark Zuckerberg speaking about the road ahead for facebook and what a post pandemic work place might look like returning to normal. We have new evidence of all of our collective hunger to go out to eat dow futures are up we areac bk with more on Worldwide Exchange after this. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. 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 and good morning. Lets get back to that breaking news out of china. China parliament approving the passing of that controversial proposal to impose what they call a National Security law on hong kong. Hours after secretary of state mike pompeo declaring hong kong no longer deserves special status posing a blow as a potential financial hub. Going on now to hong kong to elaine, a freelance journalist for the new york times. How are the protests going and what are you hearing about the prospect of future protests especially as this new security law as beijing is calling it has now been passed . Thank you for having me, brian. This has wide implications for what free speech and protests would look like. Yesterday, we saw thousands pour in and heavy Police Presence preventing people from gathering. They are preventing crowds from forming. That is much more assertive than before coming up, a lot of protesters have said they are actually at a loss to next steps there are real stock waves across the city. Coming up, we have the comem operation of the 1989 ten he men square crack down. Every year, hong kong has a candle light schedule. The only place where the victims of the massacre could be mourned locally but because of the measures imposed that only eight people could gather at a time which is extended until june 4 it could be the very first time where this landmark, iconic protest cannot be held although organizers have called for everyone across the city to light up their candles a lot of protesters are still uncertain about their plans but it is very certain well see the scale smaller than before. It seems some of the language appears vague in terms of what might fall under this law, correct . Last year, we saw people sitting in the airport peace fully, silently with signs in parks do we know what will be banned under this new law brian, you are exactly right. The language is so vague that there are a lot of fears about where the line could be drawn . The june 4 vigil i was mentioning, one of the classic slogans is an one Party Dictatorship that would be considered breaching National Security because it touches on the questions about the party. And protests at the airport, for example. It is a sensitive hub. How they will see actions like that its unclear we saw not just acts but the more vaguely termed activities that could also be seen as something that could break the law we are still waiting for details. People are worried they wont be shouting slogans they were shouting before. A lot going into effect from hong kong, thank you. Big story there. Still on deck, oil prices are rebounded, thousands of jobs are being lost in north dakota and texas. How large could that be in houston. Well talk about the face and the pace of the market ahead stick around announcer todays big number, 165 thats the increase in average video game playing while p americans are under roviconarus stayathome orders compared to the longterm average. 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. Just for healthcare workers fighting covid19. Learn more at massmutual. Com healthbridge truly transformative sleep. So, no more tossing and turning. Because only tempurpedic adapts and responds to your body. So you get deep, uninterrupted sleep. During the tempurpedic summer of sleep, all tempurpedic mattresses are on sale during the tempurpedic summer of sleep, jimmys gotten used to his whole yup, hes gone noseblind. Odors. He thinks it smells fine, but his mom smells this. 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But part of keeping them safe means folks who can stay at home being more conservative about when they return weve made a decision well be on the slow end when we are opening back up to work. We have opened up small offices for some roles well open more slowly over time to make sure the folks that really need to stay open for their lively hoods have right of way on that, if that makes sense. Just a snip it of a big interview. More on 6 00 a. M. On squawk box. In the meantime, American Airlines announced, it will slash jobs due to the outbreak and lockdowns. According to a company memo, American Airlines plans to cut about 30 of management and support staff. Thats about 5,000 jobs. They are started offering buy outs and is planning to offer volunteerly leave and buy outs for staff like flight attendants last month, airlines that took part of that grant cannot layoff employees as part of the deal for taking money nasa and spacex to try again after sour weather forced the launch to be scrubbed. Deemed a no go about 20 minutes before take off. Now to take place saturday afternoon around 3 00 p. M. Eastern. The launch will mark the first time nasa astronauts have flown in a commerciallybuilt space craft. Everybody routing for nasa and spacex on saturday still ahead, speaking to one Business Owner forced to completely flip his Business Model to stay afloat well reveal what we talked about at the beginning of the show the single best performing stock on the s p this week if you guessed it, you are a lot smarter than we are. Dow futures are up more than 100 points again a bk rlide exchange after this ights out o, ights out o, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. 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. The rally set to roll on stock futures more than 100 points now americas best Financial Advisor here with free advice. Trump takes on twitter with his war of words can he really shut down social media. Oil prices looking to stick around for a while what is the outlook for houston and texas. Well look at tough times for the lone star state. Thats coming up here on cnbc. Welcome back. It is just about 5 30 on a thursday morning im Brian Sullivan here is how your money and investments look just about half way through the 5 00 a. M. Hour stock futures are up more than 100 points dow up more than 4. 5 . Small caps up more than 8 this week weve seen a lot of money come in to equities because of the shortened week nasdaq and technology is the one sector to watch. They have been underperforming the rest of the market something we have not seen a lot of the last couple of years. At the beginning of the show, we asked you if you could not name or guess the single performing stock. The name that has gained 28 guess what, the gap. The clothing retailer stock has gained 28 only since tuesday. It is on the rise again this morning. Investors are not dancing, you probably lost a lot of money in your stock in the last few months a remarkable sign we have seen in the short coming. Gap and many of these other stocks sort of the reopened type names have really rallied over the last couple of days. Heck of a run for the gap in the short term more on the markets in a bit we want to get more on the developing story out of washington President Trump is expected to sign a new executive order today targeting the social Media Companies amid his dispute with twitter accusing it and other social media giants of conservative bias without presenting evidence against conservatives. We have more from washington, d. C. Good morning, what can we expect from the white house today brian, as you know. This is just the latest round of trump versus twitter we know the president will sign this order today still unclear exactly what it would do trump has been lashing out against twitter on twitter when the company flagged two tweets about mailin voting being misleading saying it violated policies on the election process. The president wrote, quote, twitter now shows everything we have been saying about them and their come patriots is correct big action to follow this is not the first time the Trump Administration cracked down last year, he put in an order that would have put the se krerc of regulating they never put that into action. In the last few days, republicans on the capitol hill have been slamming the media giants Kevin Mccarthy said their own