Ken frazier earlier on squawk on the street, take a listen to this when theres unrest, people put out statements, they put out platitudes they say this is terrible. We decry racism. We believe we ought to build a just society i think business has to go beyond what is required here before the pandemic there was 12 milliontilunfilled jobs in this country and 5 million inner city kids who want access to the economy. They want to be participants, citizens and consumers what they lack is the education, they lack the training there are opportunities for programs ken is so right well talk a lot about how American Business, how the corporate sector tries to heal this country thats obviously broken youre correct. It is the corporate sector and some of us would say other than the Atlanta Mayor who gave such a tremendous speech, were looking for leadership maybe we find it more in corporate or im reminded gina rometty created low income and low opportunity neighborhoods where she built schools, programs to teach people how to become the new white collar economy she called it its inspirational it happens it just happens. Its got to be furthered i know theres a legacy. They have new people but when you listen to what ken is saying, this has to be a national initiative. Theyre in chicago, theyre in baltimore. There are few executives who devote the time and money that she did to make sure ibms legacy was helping these inner city areas i listen to ken frazier from the great city of philadelphia who grew up not far from me. All that he has on his mind. What do i have on my mind . My job is to talk about whether what mercks stock should be. We have to be bigger than that all of us have to be reminded of the role we can play you and i and david talk about that we dont want to be pigeonholed but we have a role to play thats that has to include thi this yeah. Its interesting when you do look at Corporate America in terms of the pandemic, where again i think theres an argument to be made that there was a lack of broad leadership nationally. A lot of corporations did take the lead and continued to in terms of their response, in terms of the protocols and practices theyre putting in place to respond appropriately and effectively in their workplaces and with their work force. It was also interesting listening to mr. Frazier he said its great, you can read tim cooks letter, larry finks letter, on and on the letters from corporate leaders, but the question is will they follow through . Will there be follow through that will be more meaningful than simply words on a page. Yeah. I think that your hope is that you dont get these oneoff statements and that we start to integrate how it can be how this can be part of all of our thinking i think our difficulty is that its so its so one off its not business has been trying i think business tried to equalize where it can opportunity. A lot of leaders i look at are Business People who i find inspirational and theyre doing things that do matter. It took these events to put them front and center its difficult how about the fed we heard from powell last week pre covid, he made a real point of emphasizing the benefits that the roaring economy at the time was bringing to lower income neighborhoods. He took the fed road show to alabama and areas of the deep south, then you listen to elerian and talk about some of the negative externalities of the participation, the obvious areas where those assets will go, its not going to go into inner cities, it will go into stocks and corporate debt. All those business were deemed nonessential businesses so many of the smaller inner city and more troubled neighborhoods, their companies were told to close but they didnt tell walmart to close. They didnt tell other large its not targets gain that they did it it happened to be that was deemed essential we had this in new jersey. So many Small Businesses were deemed nonessential. Theyre the ones who have rent coming up this weekend and they cant pay the rent i feel this became more two societies. We did deem Certain Companies to survive and we deemed Certain Companies not to survive it happened to be a lot of the inner city neighborhoods were deemed nonessential. Now we look and say holy cow our governments put these companies out of business. What did it accomplish and its not clear i dont think anyone out of new york city and new jersey knows th it accomplished anything but wipe out Small Businesses. When you get outside the new York New Jersey area people say i would did you wipe out our stores yeah. That has been its been a tale of two cities in so many different ways in dealing with the pandemic including the geographic dispersion of cases and were watching closely for resurgence or lack thereof and those questions continue as well why was there a lockdown for so long why did you close down these businesses that potentially will not be in position to reopen given that we never saw what other parts of the country did its unfortunate where we find ourselves today. We can agree on that with the pandemic and the divisiveness within the society and within the country. What that actually means for the stock market also adds to this conversation because we have seen this divergence between the performance of the stock market and the economic and social unrest in the country. Yeah. The ethos of what happened this weekend and what happened since the tragedy in minneapolis led me to believe there are people who want the stock market down just for the sake of reverence and for the sake of understanding the pain in the country. That is not what it does now you can say listen what it does is think forward. No its not anything that has a heartbeat. Its not something that has a brain. Its just a group of companies what will you tell the people who are buying beyond meat today dont you understand the problems in our country . I dont want to be too much of a dollar sign represented by a man, but you cant relate the stocks i have in front of me, estee lauder, am i supposed to say im not buying estee lauder because skin care is good . I know the troubles in america they dont relate. Those who want it to relate are missing whats really going on were looking at companies building value were not looking at the government making some companies not do well and the fact that when i look at these companies i think, wow, theyre vir value increase i have ulta on tonight did they increase because the smaller people who compete in hair dressing and makeup, they were deemed nonessential, they could not stay in business while ulta had enough of a Balance Sheet to do so its not mary dillons fault she saved the cash and had the ability to do so its mary dillons gain and all the people who work at ulta. Its difficult to reconcile until you realize these people are trying to build businesses and hire people. Yep weve been here before were trying to do both. Trying to look at Corporate Americas response to social unrest and unease while trying to do what you would call our day jobs thats to monitor stocks your point about retailing is a good one now the process of reopening has been delayed in a lot of cases Courtney Reagan has more on that good morning good morning to you many of these retailers were damaged and looted because of the unrest that ultimately turned violent over the weekend. It comes at an unfortunate time as many of them are just trying to reopen their doors after being closed because of the covid19 crisis. The target store on lake street in minneapolis is near where george floyd was killed. That remains closed along with five other stores until further notice the associates at closed stores will be given pay and benefits for two weeks and can work at other locations if they choose in a blog post Brian Cornell said the murder of george floyd has unleashed the pent up pain of years as have the killings of Ahmaud Arbery and brian Breonna Taylor and nordstroms Flagship Store in seattle also damaged. Nordstrom closed all stoesh sts of yesterday with the opens of reopening as soon as possible. The ceo putting out a ceo saying like so many of you we have been saddened and angered by the recent conditions in our country. The senseless deaths of george floyd and Ahmaud Arbery and others reflects the injustice that still exists in our communities today. Walmart closed several hundred stores, that was mostly as a precaution as many of those stores were not located in the city centers were many of the demonstrations and political unrest and violence took place walmarts ceo did say in a statement at a time when our response to the covid19 crisis has brought out the best in us, what took place earlier this week is further proof we must remain vigilant in standing together against racism and discrimination of course many more retailers are still working through what damage has actually been done and if stores are able to reopen and when well bring you those updates when we have them. Carl, back over to you i guess the other point is a lot of these protests did blow out of the water a lot of these shelter in home mandates that weve been using to mitigate the spread of the disease. That in itself might cause some businesses from reopening in future weeks absolutely. Thats been such a concern of so many businesses. Of course retailers in particular because thats been a business if youre nonessential and youve been required to close stores, the worst mightary is to reopen stores, have a reflareup that could continue to cause significant damage remember, a number of these retailers did file for bankruptcy during the covid19 crisis with plans to close stores basically reopen them in order to close them. And if they sustained damage during this unrest that will be the onetwo punch for many of these retailers who were already struggling through this. Courtney reagan, appreciate that thank you for that check on retail when we come back after the break, we have to get to china reports this morning that china asked some of its stateowned entities to halt the purchase of soybeans and pork from the United States. China was a big story on friday afternoon. Well get ism today, set up for a busy week with the jobs number on friday. We live in uncertain times. However, there is one thing you can be certain of. The men and women of the United States postal service. Were here to deliver cards and packages from loved ones and also deliver the peace of mind of knowing that essentials like prescriptions are on their way. Every day, all across america, we deliver for you. And we always will. A portion. A chunk. With dollarbased trading you can spend what you want, even on just a slice of a share. Yeah. This moving trading thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Futures slightly lower this morning, though off of the overnight lows i dont know if you wanted to dive into the basket of china news, heightened tensions or the medical news that we continue to get from the likes of eli lilly and regeneron. Eunice yoon and Brian Sullivan had an unbelievable discussion this morning about how the prc is using our unrest in our country as a way to be able to say listen pot calling the kettle when it comes to hong kong i dont know who that is directly designed to appeal to, but it is kind of harsh to see our the cold war just accelerates at every turn. You mentioned beef and pork, but we are really very much in the soviet union United States state right now. To watch that happen so quickly is to remind us the cold war was not a great thing for business it was about ideology and trying to win over countries. It was something that when the wall came down we realized it would be a peace dividend. We are so far from peace dividends. We have to keep track of this. There was a time when we wanted chinas door to be open is because we thought we would sell more into them and thats off the table the idea that well do more business is over not to forget when the cold war was going on between the u. S. And russia, russia was not nipping at the heels of the u. S. This is a competition between number one and number two in terms of the economies of the world. Doesnt seem to be going opposite directions right now in terms of level of cooperation, whether its supply chains, changing, changing dramatically for u. S. Companies, or global companies, and on and on including now tariffs potentially going to be placed on anything going out of hong kong, which has special status i dont know where it ends up. I know youve been a proponent of being tough on china. During this period of time one would imagine its not the best of times to be having a cold economic war i agree ive been saying, i know people who follow me in washington and think what the hell is he doing . Is he switching directions we have a huge unemployment problem. I think tisometimes you have to say we have to get the working person to have a job this is not a time where we question on whether the chinese might move into taiwan, which is where all the Semiconductor Factories are that we use. Its a time to look inward whats happened with minneapolis, we doubled down looking inward the idea that this is really the time to say to call out the chinese, the chinese are trying to ring fence us theyre trying to say listen, you think theyre the great bastion of freedom this titfortat is opposite of what i was hoping would happen to create jobs here, which is really what matters. I was struck, jpmorgan had a screen last week of names where High Percentage of revenue comes from china but option protection was liquid and cheap names like apple and nike were on the list. Are those kinds of screens what youll be looking at in the weeks to come . Yeah. I think nike sales have been fabulous there apple sales have been fabulous you want to see nike, starbucks, apple, all these companies have a Good Relationship with the prc. Step back and say our companies are not sellouts our companies are doing what was supposed to be great for the last ever since nixon opened china, what youre supposed to be doing is what apple and nike and procter and starbucks have done suddenly its in question. Thats a shame the businesses were a great bridge between our two fabulous countries. I think the people are fabulous. Its the government that is the issue. Another quick break and a lot more of squawk on the street after this short commercial interruption dont go away. Hey you, yeah you. 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For a limited time, get up to 800 when you open and fund an account. Call 8663009417 or visit tdameritrade. Com learn. Welcome back to squawk on the street. Time to get in a mad dash before we get you to the opening bell we were just talking about china. I know yum china is one name that caught your attention along with beyond meat yum china split off from yum. Yum china is introducing for a limited time only a beyond burger at all of their stores, at kfc, pizza hut, taco bell it starts june 3rd i have to tell you, if this is a success, then this is going to be the next level that ethan brown has been talking about, the coo. He was on my show, mad money recently heres what he said. He made the point that theres going to be a number of very Big Investments in the company and partnerships of course theres one with starbucks, too at a time when there is a meat shortage, at a time when people do not trust the food chain, this is the era for beyond meat. I think the idea this stock should be up is correct. This like a number of other stocks, whether its draftkings, whether its tesla, whatever, they caught fire a lot of them younger people like the robinhood cohort who are looking for ideas, not indexing this is a very, very important rollout. If its successful, it can roll out all over the world do they have the capacity to meet that potential demand its a great question ethan is trying to put out so much product as to undercut the price of beef right now because he knows people dont trust the beef chain in america. So i think the instincts that you have are can he really deliver . Hes telling me we can flood the zone he feels this is the time to take it to tyson and maybe to the food chain in china. So beyond meat, they know this is everybodys opportunity when it comes to plant based. A lot of people have had i eat beyond meat all the time tastes fine. People are like have you ever looked at the long list of chemicals . All i know is it doesnt have cow, a nasty distribution of protpr prote protein. If you want the protein, go to the plant. Its not necessarily about health as it is planetary concerns yes people say if you want to preserve the planet, we must eat the plant. Im not against that view. My view doesnt matter its the younger people who do believe in this process. It l. Will go up in this environment carl, we are getting ready for a market open after what was a relatively good week if i recall its hard to keep track. Every day feels like a lifetime. Its true. Coming off two monumental month