And 10 respectively snap announcing a new partnership to increase User Engagement and add revenue the cofounder will join us in a few minutes for an exclus iive interview. The dow is on track for its biggest drop since march bob has more on this sell off for us bob. The whole reopening story a little bit under debate right now. The important thing is, the reopening stocks the industrial, the fin tech names, the energy and oim names. All moving to the down side. Boeing is still up 24 this month even with this decline its been a monster. Jpmorgan, all banks, weak, caterpillar weak these stocks had very big moves. I want to show you the big etf movers today were getting double digit declines with some of these energy names the jets have become a super star down big today banks also weak and the pej which is a leisure sector very weak here. The reason were having this is because these were the sectors that moved up the most in the last month i want to show you, can you explain to anybody, we have hard time doing this. Why Airline Stocks went up 80 in less than three week period culminating on monday. Oil services, 70 . Bank stocks 50 . Leisure and entertainment up 50 in a threeweek period culmin e culminating all this topped out on monday at the close lets remember whats moving stocks the valuations are frothy. Thats whats moving things today. Maybe its not a v but what is it its not clear the fed throwing that whole thing into doubt and thats the big debate guys, back to you. Thank you, sir. Lets flip over to the bond market now where yields have been under pressure where fed chair powell spoke rick has more. Rick, go ahead, sir. Yes, matter, it isnt just from yesterday every single day this week yields have dropped from their peak on friday on the jobs report look at a week to date chart at 666 here, were down 7 on the day and its never a good yield to be at 666 if do you look at a 24 hour chart of 30s, we have the auction today. I graded a bit below average here at 142 were down nine basis point ons ts on the day whats really interesting is it is this big demand it wasnt at big demand at the auction. Here is a 24 hour chart. It really has been bouncing around it seems to be now above those two twin peaks there theres probably some Short Covering going on because if you look at the chart and open it up, were getting a nice bounce off of three month lows in the dollar index and its back in positive territory for the year. Tyler, back to you thank you very much. Stocks tanking after what has been a fast and furious rally over the past month. Fears over the economic fall out over the coronavirus front and center for wall street for today. Here to make sense of it august is russ. Great to see you is this a case of the market really reacting to the feds sort of pessimistic view or the idea that the economy is not going to come back quickly and heightened cases or is it the market looking for a reason to sell off . I think its exactly the latter what the fed said to my mind wasnt overly pessimistic. It was realistic we know this will be a difficult recovery this is unprecedented, shutting down an economy the way it has you cant turn a switch and expect it to come back overnight. I thought the feds comment wrs dovish they are going to buy assets i think whats happened exactly as you point out is theres exhaustion and two, there is some concern about the pick up of cases we have seen in places like arizona, in texas and california which calls into question the case at which the lockdown can be eased. I guess im hearing you say that youre not personally convinced this is going to be a v recovery you and are next each other in the alphabet does this look like a saggy v or a sharp u . I dont know. Ive heard the square root im running out of letters i think its probably in the saggy u category to get a v shape recovery not only would you need a very quick reopening, youd also need that consumers will come back very hard now, we think the u. S. Consumer is in decent shape they went into this crisis with a much better Balance Sheet than in 08 theres been a lot of damage to small and mid size business. It was always unrealistic to expect the economy to snap back when so Many Industries from restaurants to hotels, airlines, leisure are not going be able to operate the way they did before the crisis for some time theres a lot of job loss, needless to say there and incomes that have been impaired from otherwise less hours work and so on and so forts if you had to choose between Growth Stocks and value stocks, it would seem that growth would have an edge at this point i think thats right. I want put a bit of a nuance on that i think its about profitability and consistency. If you look at whats been doing well and you have the evidence again today. Part from the last three weeks when investors and a lot of small investors, a lot of Retail Investors chasing the most cyclical names which worked those companies that are likely to prove resilient because they are profitable, they have clean Balance Sheets and able to deliver consistent earnings. Most are in tech, communication, health care. There are industries that were going fast before the crisis and for some of these companies the crisis may even accelerate some of those trends. One of the things interesting in my notes is you indicate you think there may be a short term play in europe why and where . So europe is interesting. I think the rebound in europe last few weeks has been very much tied to the rebound in value. We do believe theres a couple of reasons to look tactically to europe one of which is buy in large we see a lot of inexpensive companies there. Second of all, countries like italy, for example, will benefit from the increased fiscal coordination that were starting to see france and germany a few weeks ago. As we saw last week the ecb is getting more aggressive which is a tail wind. To be clear, we still like the u. S. Were over weight the u. S. Europe is more of a rent than a buy. I do think theres an opportunity in european equities thank you as always great to see you kelly. As the coronavirus took hold of the economy and the markets in first quarter, we just learned that Household Wealth in the u. S. Dropped 5. 5 . Steve has more on that story for us thanks. Households took a big hit from that downdraft in the market thats a record for a single quarter. In fact, its double the prior two records combined of 3 trillion each. What happened, equity declined by 7. 8 trillion we got a bit of that back in reality. Maybe we get 400 billion in real estate federal Government Debt rose by 14. 3 . Thats the most since 2011 business debt also rose as companies tried to raise funds to liquefy themselves up 18 points the most since 1973. Tyler was asking about shapes and letters. Look at that little v to the left there in 2018, thats the fourth quarter. We got it right back right way in next quarter and go to the other side of the chart looking at the change in household net worth. Thats 2008, 2009. Thats five years. Thats a long u getting back very quickly, powell said the world uncertainty 11 times in the press conference its something hes emphasized before that. He said markets are trying to price in something so uncertain which is the path of this virus globally and its effect on the economy. Thats very, very hard to do i think today is the day the market seems to be embracing some of the possibility of an uncertain outcome. Steve,how much would you trace back to feds decision yesterday to the press conference when we were covering that, the markets were pretty much rallying in response this has been a pretty big turn around over the past 24 hours. If you go back where the fed staff said theres an equal probability of this thing going away and of a second wave to this virus powells been trying to pound this idea that the outcome, now you can seize on the idea the outcome will be very negative but his emphasize has been on how uncertain the outcome is yesterday you saw how negative people think it will be. The four fed Board Members when it comes to unemployment remaining 10 by this year and a two year time horizon it doesnt get back what we had before the virus. Exactly steve, thank you steve with very latest from the fed. Tyler. Steve, just sort of froze right there, didnt he just kind of stiffened right up there like one of those fish he catches. He doesnt know i can still see him too. Coming up, well are more on the market sell off. The dow is down 1500 points right now or thereabouts with energy, financials and material those are your worst performing sectors. Snap launching a number of new features for its messaging app. 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. Welcome back you can see the dow down at new session lows were just down about 1550 its a 5. 7 decline for the blue chips and its been weakening throughout the afternoon moments ago snap announced the launch of several new partnerships for its augmented reality and map features thats in other words to increase User Engagement its the latest move in social media to grow ad revenues. Julia is with the cofounder and ceo of snap. Thanks so much for joining us today on the heels of your big presentation of all those partnerships thanks so much for having me. Were so excited about all the products we have announced and so grateful to have this opportunity to celebrate all of our partners that deliver so much value to snapchat community. Its been so much fun collaborating and working together with so many talented teams across the world you really announced range of partnerships with brand, Media Companies and other apps some people say it looks like youre traying to transform into more of plats foform or we chat. What is your vision for how youre transforming snap and how it will help you better compete with facebook and instagram. Really what were trying to do is better serve our community. Our content business grew out of this desire that our community had to learn more about the world. We were able to partner with so many talented publiceshers and people developing shows to serve our community that way when we started building our map, people wanted to flieblg the map was personal so many maps have been used to get from a to b. Now were bringing local businesses into the map because our community cared so much about the local businesses we felt like that was an important way to create value. As we look to things like minis that are kpietsing new extension of our platform, we believes that snapchat helps friends connect to one another and do activities that they wouldnt be able to do on their phone. We follow snapchatters lead. Were doing our best to serve them just to go back to your comment about the potential for Small Businesses that youre bringing onto your maps platform, whats the potential for advertising and going after ad market share thats been dominated from the likes of yelp and facebook thats talked a lot about its investment were really just Getting Started there. This is predominantly about bringing local businesses on the the map and helping them advertise their hour, website or menu or help people order online this is the foundation were trying to make it easy for local businesses to advertise. If youre local business owner, you can log onto our manager and type in name of your business. Well auto fill that places profile for you to make it easy to create a snap ad. Local businesses working on reopening, getting back up and running after being shutdown for such a long period of time, they feel like they have our full support. Evan, theres been a lot of talk about your decision that you announced that you will not be promoting president trumps account within your discover platform drew a lot of blow back his Campaign Adviser called you radical and said you were trying to rig the election for his opponent whats your response to that allegation we always said discover is a closed platform and we choose the type of content we want to pro mote were well within our First Amendment right to decide what shows up on there i think its a relatively easy and straightforward decision and well continue to try to create a discover experience that reflects our values and promotes content we think is important for our community to see social media has been in president trumps cross hairs. He has a essential media order to threatens to limit companys ability to centusor or flag content. What do you think of that . I think what youre talking about is the proposed changes to section 230. It was designed to promote free speech it true trooied to allow platforms to take the steps necessary to create a safe environment, try to remove content thats violent or threatening or create place where speech could be hosted freely and not hold platforms accountable for speech that individuals make on that platform the thrust was to protect and promote peoples abilities to speak freely on these technology platforms. Im not sure, frankly, how these changes that are being proposed would impact section 230 i think its important to reiterate the First Amendment. There seems to be some confusion about the First Amendment and who that applies to. Its very specific its designed to protect individuals and private businesses from the government i think the really interesting thing here and youre seeing lots of businesses and brands exercise their free speech, for example, nascar said we dont want our fans sthoe up with con fed rat flags. Thats another example of a private business exercising their right to free speech on their premises snapcha snapchat, we embrace those rights we want to use our First Amendment rights to stand up for things we believe in you wrote this memo this week its very impassioned about racism and diversity in this country. What should we expect for from snap on that front this is something that is very important to you yes, its something we have been investing in for a long time as a company but also as a family and its an issue we care a lot about. America has a long legacy of racism really starting before the founding of the country when slaves were brought here to this country and so we think its really important to knowledge that history and apologize for that and really make steps forward here to create a country that lives off to its ideals of freedom, equality and justice for all. Some of the things were doing inside our business, were very focussed on improving representation overall both in the short term but also in the form of longer Term Investments on things like education and other programs to help underrepresented talent in our community. We have a thing called the snap Design Academy where students from all over from different backgrounds come in and work with the snap design team and we partner with the Royal College of art which is one of the best art schools in the whole world to produce this program. Two of our graduate, i just found out yesterday, got into an rca program. Thats an example where were trying to invest over a longer period of time to create more Educational Opportunities and therefore improve representation overall in the tech and Creative Industries i think thats really important. I also think its importance to create an Inclusive Culture on your team and workplace. We have something called counsel where we encourage people to sit together and share perspectives on how they feel thats something we had in the early days when it was just six or eight of us i think its important for all of us to Work Together to invest in some of these longer term initiatives that we know pay tremendous benefits down the road should we expect more from you in term of the makeup of corporate work force its definitely something we have talked about. We want to make sure we not normalize that representation. It wouldnt surprise you that snap chat looks like most other Technology Companies in terms of representation we think thats bad thing and not a good thing were trying to do is release the numbers internally we have seen some short term competition rather than a collective effort to i vest. Were really focused on these long term representation ive been worried some of these normalize and were inventing a mu way right now to release the information and make it clear about the plans we have to include representation at snap and more broadly in the industry i want to come back to the idea that youre going to no longer promote president trumps account in discover, which is something you apply to others as well what is that mean in practice that you will no longer promote his account, number one. I gather you reached it not he or his team posted on his discover account but based on things hes said in other venues or on other social media accounts tell me why that becomes germane to this decision and then, third, were there specific things that led you to this decision specific comments. When we built discover a long time ago we felt it was an important need to choose the different content providers that we wanted to work with to provide a great experience for snap chatters. They really expect that from us. When they go to discover they expect premium content and thats an area we really invested were so grateful to work with many publishers and journalists around the world from the beginning, we had a lot of guidelines about the types of content we wanted to promote in discover we have rules about off platform behavior that influence our decisions about who we promote in this particular instance, i think, it wasnt just our perspective. I think it was a widely held feeling across america former president speaking up, the jarm chairman of the jointsf of staff talking about the comments the president made against fellow american citizens i think that upset people across the country. Is this really the type of behavior we want to promote in our discover section the president still has an account. Hes active on snapchat but we dont need to promote him on dis