Now more than 47 off the march low. The nasdaq closed at the record highs as well. This morning, seeing give back the dow indicated down by 345 points the s p indicated off 35 and the nasdaq off by 70 points. If youve been watching cha is happening with treasury yields, a lot happening. The 10year at 0. 82 we had been at 0. 9 . We had been at 0. 7 . We are seeing a little give back with oil prices seeing wti down just 0. 5 . We have another big show. Three squawk exclusive interviews taking place. Finding solutions for economic racial inequality. The highlight is ceo of e sen sur. And from barrons with a lot to say. Dick parsons will be joining us. A lot on tap thank you getting an update now on the reopening. Movie theaters in california can reopen on friday only if they obtain approval from county officials requiring imposing safe guards including limited attendance to 25 or 100 people, when whichever is lower. New york mayor bill de blasio is planning to make parts of manhattan, busonly cord i doors and the Trump Campaign is gearing up to Start Holding rallies. They are still determining where and how rallies can be safely held the last Campaign Held on march 2 in North Carolina before joe biden became the democratic nominee. Stocks to watch today, macys has raised 4. 5 billion in new debt. The money will allow it to survive the pandemic with funding and purchasing new inventory. That stock is up around 4 it had risen from those lows that were down around 5 andrew stitch fix, those shares are falling because they errored a decline of 9 as their supply chain hit a snag it expects to clear order back log by the end of the month. Reporting 3. 4 million active clients. 9 increase but given everything going on with the pandemic, it should be the online retailers that are winning part of it was the back log story. Some think they should have done better but then again, are people buying clothes when people are stuck at home. Tailored brands reportedly filing for bankruptcy. The owner of joseph a. Banks and other brands what is the slogan you are gonna like how you look which is nice. There are days i dont feel particularly pretty or handsome. It affects your mood, your swagger, your delivery right . Are you not going to agree with me, andrew i agree 100 . Im in agreement. You want to like how you look . You dont care . We all want to like how we look you are up on the north 40. You want to look good for the fam. Thats stitch fix the reason you probably saw the decline. Personal stylist to help you figure out what you want to wear nobody is going anywhere the things that were selling were path ammas, athletic wear nobody is getting all fixed up and dressed up it is coming. When i venture out, im going to look out of my going to break out of the abc pants . No. Not getting out of those you should go to mens warehouse. Youll like the way you look compared to an ounce of gold or barrels of oil, it is much cheaper. You can get two suits like for like 300. You used to. I bet you ka these days for stayathome, who needs a suit anyway, when we come back, covid cases ticking higher in more than a dozen states at least two states are hitting record high numbers for hospitalizations dr. Scott gottlieb will join us with more of what this means take a look at shares of two dow components apple and home depot both up year to date can you see those gains there. Squawk box will be right back. With decisions focused on the longterm. And crucial when circumstances become difficult. That continued emphasis on people our advisors, associates, clients and communities gives us purpose, strength and a way forward. Today. And always. Bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. Welcome back more than a dozen u. S. States have seen confirmed cases of covid increase in texas more than 1,900 hospitalized patients topping the may record texas was one of the first states to relax the stayathome order allowing some businesses to resume operations on may 1. North carolina also has its highest level yet. Both texas and North Carolina are in the top 10 of infected spread with each infected person affected one other according to the data florida is also seeing a rise of new covid cases. The number is up 46 over last week with more than 1,000 new infections and each of the last five days. The state has also ramped up testing. The number of positive tests has remained below 5 . One of the big pieces is europe and asia where things are definitely giving us at least hope that it could be repeated here europe and asia have avoided significant Resurgence New zealand has zero nothing how is that possible . Stronger borders. Some of these other places, no new cases in croatia, cypress and other places on the other hand, youve got texas, florida mixed bag. Also some news from the World Health Organization, officials there said asymptomatic people are not the case of spreading. It is not the primary path the w. H. O. Said more study is needed but governments should focus on testing and isolating people with symptoms and anyone who came in contact with them. One of the primary reasons officials recommended social distancing to begin with joining us now to talk about all of this is dr. Scott gottlieb. Cnbc contributor serves on the board of a loom gn illumina and pfizer. The idea that asymptomatic transfer isnt the path way we should worry about is it dangerous . Is asymptomatic transfer something you are concerned about . It is unclear if it is the primary path way but it is something we should worry about. They basically drew that conclusion by looking at Contact Tracing when they looked at what the companies did going back and seeing the contacts. When they traced those individuals, they didnt find any additional spread. They concluded that the asymptomatic individuals probably werent spreading the virus. We know people who are asymptomatic share the virus sometimes on the swabs, they have as much of the virus of those that are showing symptoms. We just dont know right now i dont know if we can draw a conclusion clearly there is some sim toe mattic spread. The thing i dont understand about the World Health Organization they seem to make thee proclamations somehow against what other Health Officials think. They came out a few weeks ago on masks saying you dont have to wear a mask. It is very hard for the public to know whats going on. Weve heard on the mask front was one of the reasons they said was not because they didnt want you to wear the mask but some countries, they still cant get their hands on the masks and they Want Health Care workers to get these first. How do you think about the way theyve approached this at this point . They make policy judgements in the wake of scientific analysis it is hard to couple what is being baked in to assumptions. That mask guidance was ant thet call to other instruction on their websites immediately, it was in option to guidance already on their website. I think that if they are going to put out a Statement Like this and get picks up as widely as this did, they should put out underlying data driving it and not just say from the surmiezed spreading and saying there is no or very little asymptomatic spread you can say a lot of reasons why that might be true we need better data than what the w. H. O. Seem to be basing it on to draw that conclusion scott, if they are right. Kids should go back to school, everybody should be we should be back to work. We shouldnt wear masks. The idea was that asymptomatic spread was the concern asymptomatic spread is a lot of the driving of the measures we took. We dont have a study that shows more illumination on that. We look specifically at the viral loads in the swabs and suggesting they spread it. If you have a lot of virus in your nose and you are asymptomatic, and you are likely to spread it or be contagious. A lot of studies looking at that question not looking at the population level of those responsible for further spread remember, also, a lot of this is from the super spreading events through the small number of individuals spreading a lot of the infection. It may be that these are less likely to be the super spreaders. If we can draw the conclusion about the policymakers in terms of the steps we are taking weve got one of these temperature monitors now it takes three seconds to stand in front of it, if you dont have a fever, we can assume asymptomatic is not clearly as contagious if you socially dance after you go through the Temperature Check and it is less likely if you are asymptomatic to spread and you do the social zans dancing that would make it very powerful to monitor those people coming in if they have 100degree temperature. There was a lot of studies looking at temperatures and people that presented with symptoms youd want to do a full health questionnaire. Looking at cough and diarrhea and things like that scott, looking through the increases weve seen and in places like texas and arizona. A lot of places that have opened up early ive heard several different takes out there. Some people pushing back and saying, no it is just that they are testing more what do you say to that . There is an increase. Hospitalizations are going up. We shouldnt be just looking at new cases. That said, we expected cases to go up when we reopened arizona has a large outbreak under way. 20 of all hospital beds are occupied 30 of icu beds. Texas in cities like houston where Texas Medical Center is reporting more cases than the city of new york right now we seem to have made a policy decision well tolerate a higher spread here. Other countries continue to drive rates pretty low hoping that we can manage through it contain it through better testing and preserve life through better treatment of individuals. So the death rate should come down but well toll rerate a lot of spread heading into the summer and fall well be very reluctant especially ahead of an election. Well be doing a lot of ways to mitigate but tolerate a persistent spread that seems to be the case that will be higher than other nations. Thats one reason why consumer activity may not rebound we may have that sort of 80 economy where people are still pretty cautious about what they are doing and engaining in the economy. On that level, i dont mind not seeing others. It is my kids. My kids when other kids are hanging out together hanging out. Am i a bad parent for keeping him back from some of those things should i loosen up it depends on having a cohort in terms of a social network outside is safer than inside i think schools will open in the fall there will be attempts made so that they are not intermingling with the entire student population how contagious are kids and susceptible. They appear to be less susceptible and less contagious. We should have better data sweden kept its schools open that was an opportunity to do some largescale studies of wha the implication was. We didnt do it. World Health Organization didnt do it. We are missing a lot of opportunities to definitively answer a lot of questions that would really change our personal behaviors but our policy decisions. Dr. Gottlieb, thank you we appreciate having you hear sort of holding our hands through this and walking us through these questions. Well see you back here tomorrow yeah, we dont want to touch him. Holding our hands remotely figuratively. No offense, scott just go like this and go through it we need it Everybody Needs a little more. We know that coming up, america getting back to business. We head to break, take a look at the biggest premarket decliners in the s p 500 all energy mostly American Airlines is there too squawk box will be right back. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Small Business Owners are considered the back boen of the economy. A new report on main street economy. Looking for green chutes, the nib has some good news increasing 4. 5 points to 94. 4 in may. Biggest increases were seen in expected real sales, plans to increase employment and increase inventories. Key because it hit a new historic low last month. The only two that dropped were current earnings trends and job openings the biggest was poor sales follow bid labor quality and taxes. The top concern for main street more than a year pointing out racing Savings Rates with a lot of pent up demand consumers will have to stay safe in order to spend the money to shape the pace of the recovery back to you. I figure that small Business Owners lean towards optimism it has been tough. You dont want to be unrealistic. Have you see a pessimist starting a business . Probably going to fail i dont expect to be here in a year you know, they are basically optimistic if there is anything that gives them hope, they seize on it. Thats really true. For many of the businesses that had been around was them saying weve survived worse like living through 9 11 going through the last recession. Many of them held on to hope and lessons learned. There was a lot of frustration around waiting for that ppe money. Now it is about wanting to use that and the flexibility around that one thing the nib was pushing towards and would move forward it is kind of heart warming and then makes me feel bad for how tough it has been just staying closed and not having enough money for your employers coming up, more on squauchl this 340r7k. Stocks looking to pull back after six straight sessions for the dow. Take a look at yesterdays s p 500 winners and losers as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will you can rely on the people and the network of at t. To help keep your business connected. 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. What do i need from a partner right now . An insightful outlook that comes from experience navigating multiple bear markets. Can i find a partner to help guide me through this uncertainty . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back to squawk box. Futures pointing to a little pull back. The s p 500 has now erased its losses for the year and the nasdaq closed at a record. Some of the names pushing higher tesla, ebay, paypal, microsoft, amazon and alphabet. Here to talk more about the rally, and our own mike santoli. Julian, it is as if theres been nothing. We erased it all. What do you think . Caller in the longer term, we do think there is more to go. The fed has set the system on the term we get going. And with medical progress, we do think there is more to go. You have to step back and say to yourself in less than four months we have seen two complete market cycles that often tear two years to unfold. With full on panic in march and massive liquidation and to where we sit today, you actually have seen as counter intuitive as it may seem signs of euphoria record account openings of zerofee online trading and something we thought wed never see. Buying billions of shares sending prices up 100, 200, 300 , stocks in theory would be worth nothing. Those would cost in the market. Explain that. Those points fascinate me. Companies like hearts who have filed for bankruptcy and the stock has gone up when the equity is supposed to be worth zero caller it is speculative behavior something, for me, that we saw at the end of 1999 and 2000. That certainly did mark on the bullion which granted the flows do not reflect but you are seeing it in the stock price reaction and it really doesnt make rational sense. We talked about cycles and where we are julian talked about going through the new cycle in the next two months. Is that the right way to think about this i think there are absolutely elements of a new cycle. We went from full employment to massive employment and well have to pick up at that store of new workers. At this point, if you are down more also an extraordinary set of circumstances. It is not just the fed petered out. Not just the kpangs but this is obviously a shock and preintervention to make sure those didnt come in there to spin out towards the down side it doesnt matter what we call this thing it was a crash in a mature bull market it doesnt make sense to the drop of the bare market so to say but it didnt havethe kind of bare market behaviors an reckoning. Its off like 87 of Something Like 07 to 09. The stock market in displayed behavior has shown a lot of the hallmarks of an early bull market all the beaten down stocks have led the way to broad buying. All the signals about what this means are generally positive just very overheated and stretched on that long term it doesnt make a lot of sense on the equity but seeing on the nonbankruptcy stocks giving the market a lifeline because it is basically an option on the continued survival i see where it comes from even though it does not make sense on those previous cases a lot of money a lot of money that finds its way to places it had to be when 87 happened, we were broken for years. Being a retail broker. It wasnt like this. I see what you are saying. I know what you mean. It took two years i was hoping this is going to come back because American Express was like 4 a share or something. It took two and a half years it was devastating and didnt snap back for years. Prices i dont mean the come back is similar but what i mean is it wasnt about the Business Expansion ending it was the financial shock in these circumstances. That was a real one and we still havent had a 25 down day. Thats the other thing it was 60 years before that that you had the crash by the way, i was in high school. I wasnt a stock market but in 74, it was a sickening grinding much like i