And Andrew Ross Sorkin well start with the markets this morning as the nasdaq logged another record high nasdaq now on an eightday win streak the longest since december last year watching u. S. Equity futures today. There is a pull back the dow is indicated down 265 appointments s p off by 28 and nasdaq down by 50 the nasdaq has seen its best quarter since 1999 and the dow the best since 1987. Check out the s p, for this quarter, s p is up for its best returns it has seen since 1975 looking at the treasury yields this morning youll see the 10year note yielding 0. 7005. That is kind of our comfort zone pretty comfortable if you need to borrow money for sure. The u. S. Is weighing some new tariffs on experts in this case from france, germany, spain and uk related to the 15year old wto fight over aircraft subsidies. Saying the eu is guilty of unfair subsidies to airbus the u. S. Has been accused of unfair subsidies to boeing, negotiations have been at a stalemate. Andrew thank you, joe in the meantime, weve got an update on the pandemic the sevenday average increased more than 30 compared to a week ago. Growing by 5 or more in 26 states arizona reported a new report of nearly 3,600 cases texas reported nearly 5,500 new cases and 12th straight day of a new record the governor urging texans to stay at home unless they have reasons to gather out and limiting public gathering over 4th of july weekend. All of the folks that are coming together tightening regulations in Day Care Centers after a surge of cases among staff workers and children and dr. Fauci Gave Congress an update on the pandemic we are now seeing a disturbing surge of infections that looks like it is a combination. One of the things is an increase in Community Spread. That is something im really quite concerned about. Dr. Fauci said state with outbreaks like texas, arizona and others might need to pause their reopening but an absolute shutdown will not be necessary i wonder if the moves today comes because of the increasing sense that reopening would be slower than anticipated. Remember Scott Gottlieb said yesterday, if you saw 5,000 cases in a place like texas that would be concerning. That is what happened yesterday. It makes you wonder how you stop it and bend the curve now. Well talk with him in a moment. And we are back to we still need to watch most importantly for the Health Care System that it is not overwhelmed. Thats the metric you need to watch in places like arizona and texas. Apparently they are getting some what close but we are not going to have zero cases what is worry some, sure, it is texas, arizona and other places, we are opening up a lot of travel and flights are starting to open up again thats why i dont think you can say it is just texas i dont know what it would take to come back to the east coast but it doesnt seem like it would be that difficult. And the east coast is so much denser thats why the problem was so much more pronounced here because the spread is easier with people right on top of each other. Well talk about the eu in the next block when we go to break, i have something to read about it i was thinking about that. If you were the eu and you were reading whats happening in the United States, you probably wouldnt want a lot of flights coming in. You know, in paris, they see a lot of people coming from some of our states, im not going to single out texas in paris, i dont think they like me anyway i got the hat, ugly hat and flip flops. I still have a camera. I use my phone but i still wear the camera to look like a dorky tourist. They are like, well let the americans in if they bring their money but if this is a problem, i cant say we did that to europe anyway when they had a lot more cases exactly in the beginning, we told them they couldnt come here. So there is a bad will already sown you are right, if you feel like you have things under control why would you want flights coming from somewhere else right but in europe and those places, that is the life blood the question i ask both of you is why dont we do that across our country stop flights . If you are Governor Cuomo in new york and you feel like youve done such a great job to this point to get the numbers down just by the way, when people are starting to reopen and come together and then you get infection coming in from arizona, texas, florida, other places it goes back to commerce. How much does new york city rely on tourism too we dont want to close again. Weve done that. Weve seen what happened in the Unemployment Rate. Making the point that if the Health Care System is not overwhelmed. This is something, if you protect the people that are vulnerable most people recover. If you never get a vaccine, you are never going to get herd immunity you just said it is bad for paris. I can see why they do it. Im not sure it is the right move for their economy we eventually need to live with a certain level of this virus. It is almost july and we are talking about texas and aisrizoa the flu is normally long gone. Youve got a virgin population that hasnt seen this virus. I dont know if it is like the flu. It is new, thats why it is called novel between now and a vaccine. Fauci said hes hopeful. If it is within months, that is better than years. That is a positive you read about a whole continued people on the other side that say, look, the original idea was to not overwhelm the Health Care System not to go to zero. Youll never get to zero joe, to that point, i believe there were a number of doctors, hundreds i think it was texas maybe arizona, who signed a letter asking the governor to take steps because to that point, local municipalities were not able to say you had to wear masks. Doctors came forward saying, look, we are being overwhelmed the governor had a change of heart and is allowing some local municipalities to go ahead and say you have to wear a mask here if not, it will overwhelm our Health Care System if you have the doctor saying forget it, we have a serious issue. They cant manufacture enough plexiglass washington is mandated they looked like they were in a good position. Now they are mandating masks as well i had to take my daughter to the doctor something about abbott resigning. They are mad at greg abbott as well they are mad at desantis in florida too. Villain and hero. Florida is hitting record cases. A lot of people on those beaches without masks, are there not i had to go to the doctor there is no Hand Sanitizer out in the front i finally found it it gets ripped off it is hard to come by this stuff. Guess who is here i guess he said i need to get in on this conversation i think gottlieb was at home i think we said that. Dont call us well call you thank you for being here dr. Scott gottlieb you heard us talking california and texas both reporting over 5,000 cases if europe says dont come here, why doesnt new york say to texas dont come here . I think it will happen. Weve talked about that it may become difficult for americans to travel abroad if the cases continue to build and theyve really crushed their infection there. They dont want to import it back in. I think youll see some restrictions of intrastate travel i think states are going to make a decision to do it. You could see some states quarantining people coming from other states being enforced. The other thing you could see states do is impose restrictions coming from miami, hartfield jackson, houston, youll go through screenings theyll make it inconvenient for you. I think we could very well see those kinds of restrictions to the extent that they are legal those kinds of measures could be legal and could get around restrictions some threatened that and the other governor took offense. So thats already the subject has been broached desantis did it that will be another one of the things well talk about that will hold back a complete economic rebound not a reclosing it is not a reopening. Thats for sure. Thats the least of the things that could potentially happen as we head to the fall. It will be hard as we talked about decisions. Schools if you have this spread in the south. That will be a drags on economic activity. Very soon, probably into next week, hospitals in texas, california, florida and arizona will have to make decisions to suspend elective surgeries if the cases continue to build at the rate that they are and there is no indication that they are not. Youll be on the tropajectory t get overwhelmed again. Probably people themselves will pull back. But hospitals will contemplate and toward the end of next week, theyll have to start making those decisions i suspect well hit 5,000 cases a day in texas and california this week or next week we hit those flesh holds yesterday. California hit 6,000 cases, texas over 5,000 if that continues to build towards the end of the week, thats a really bad sign dr. Gottlieb, what would be the next sign. You said 5,000 would be your concerning point you said continuing to build what is it 7,500 what is the next flethreshold . Continued growth. You start to see 500 to 1,000 in states like california, florida, texas. They rise and fall every week to the reporting of cases also the reporting of hospitalizations because of delays over the weekend. You expect that if case counts build where they are right now, theyll build and come up over the week again it is a pattern we see a lot of Community Spread will be hard to extinguish that they may have to make decisions to close bars before hospitals close elective procedures. If hospitals make that decision, i suspect they are actively discussing that right now. States will be forced to take measures ahead of that to close down these settings. They havent done Contact Tracing war to know precisely. Surmiezing the spreading is going on scott, is there any chance what we are going to see we are seeing numbers go up and hospitalization rates go up as well well see a larger portion or group is on the younger side when it comes to deaths and when we start to look at the morbidity rate relative to hospitalizations and testing, that it will look better well get into the whole behavioral science number and that is what people take away from some of these numbers susceptibiity is declining. The demographic getting infected is different it is younger. But also we are doing a better job of treating people no question about that doctors have learned a lot about how to treat covid the total number of deaths falling because the total infection burden is lower now than in april. Even though. Numbers look the same, well eclipse april. Well eclipse 37,000 a day. Those 37,000 infections probably represent 30,000 at the peak right now, we might diagnose one in five or 1 in 10 representing 200,000 the overall Disease Burden is down younger people are getting infected, we are reserving more life right now, the demographic getting infected is younger people with this number staying in texas, arizona, california, florida, it doesnt stay that way. They have to be worried. They cant say, its only 20 and 30yearolds, theyll weather through it as much as 60 and 70 year olds are protecting themselves right now, it is not going to stay that way at this level going back to what you said in terms of states potentially not wanting visitors from another state oregon through a particular airport i wonder how our air travel system has changed over the years where it is hard to get to places that have a major hub unless you fly through some place else does that change coming from a stot not high infected going through another state, if you had to stop in chicago or atlanta, would you be considered someone who passed through a hot zone if you were just in an airport potentially youve already seen the behavior youve seen them impose restrictions on visitors coming ba being to florida. Youll see the different measures take those rates down at a cost. Why would new york, new jersey, connecticut want to readily import infections from other states they had restrictions on their own citizens ill think youll see those come up soon. Youve already seen them pull back on athletes even the nba has to make a decision about orlando now well have to see which way florida goes if it ends up being the epicenter similar to california and texas it will be temporary i dont think these things will be permanent and permanently change the travel. The other question is what do we do about travelers from europe that point you made why we are not seeing the same death rate is really i was worried that the death rate was a lagging indicator and that it could go back up as cases started spiking. Thats not necessarily the case until you move into those demos. Could happen for arch reason we will see the death rates go up because of the higher case burden dr. Gottlieb. Thank you. Well see you tomorrow coming up, baseball is back. Details on the plans for a shortened season as we head to break, look at shares of etsy that stock upgrade by rbc and goldman sach people looking for hand made masks and sanitizer and more we are coming right back businesses are starting to bounce back. But what if you could 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. New york city is opening up further ahead of the july 4th weekend. Announcing that the beaches will be open to the public for swimming on july 1 he urges people to maintain social distancing and face coverings when at the beach. The city will hold scattered fire works through the city. The grand finale on july 4 over the Empire State Building and an nbc broadcast with musical guests fire works not looking good for a lot of places. I have three people that are really happy about that. Not really people. The dogs . Yes think if you where a dog every once in a while that happens. It would be frightening. It should. Its thunder is. It is official. Baseball is going to return. All remaining issues have been resolved the season is expected to start on july 23 or 24 the league is still working out. Mac has another jersey on him. Hes lucky really lucky we got no one operating the camera who are the mud hens hes going over. Hi, mac i thinks that the same name of lea the band mud heads. Andrew when we come back, microsoft announcing plans to ramp up diversity in senior ranks. Well tell but that. The dow will open up a little over 1 . S p close to half a percent down take a look at the bgeigst premarket decliners in the s p 500. Away from your body. So you feel cool. Night after night. During the tempurpedic summer of sleep, save 500 on all tempurbreeze mattresses. Miles to the job site. The campsite. And anything else we set our sights on. Miles that take us back to the places we want to go. And to the people who count on us. So, lets roll up our sleeves. Because weve got miles to make up. 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. Welcome back time for the executive edge. Now outlining plans to double the amount of black managers and Senior Leaders at that company in the next five years saying Senior Executives would be judged for progress and rewards. Last count, black workers represent 4. 5 of microsofts u. S. Work force. Want to get a check up on how things have changed over the last year. We have the exclusive data on that and that story now. Good morning. In recent weeks, companies have been issuing statements and making pledges fresh analysis of the top 200 companies of the s p 500 shows people of color make up only 20 of directors up 1 from last year the percentage of black independent directors have decreased. Minority women have seen no progress stuck at 10 . Can diversity be a priority of a company if not reflect the at the top. Even though test after test shows having a difference of opinion at the board room is good for business. Part of the reason is said that some of these businesses tend to have longer Capital Investment cycles and less con fumer facing with diverse boards. 71 percent e or more have one or more minority member that is an up tick from last year when you think about the issues, one of the things stated all the time is pipeline to the extent that there is a time line for all of this and companies are now saying we can do this, do you think this is a oneyear do you think it is a fiveyear out issue or decade out . It really depends on the company. Whether it is a smaller business or larger company, it has the Resources Available to make those changes at a faster rate speaking to officers, theyll say diversity is a public priority very few evaluate that metric. Up for their performance review, looking at the quality of work and how productive they are, developing his or her team did they priorities gender and racial diversity they see that coming up in discussion across the nation appreciate it thank you for bringing us those numbers. When we come back, we are going to talk about todays pull back in the futures and the incredible runup weve seen in Technology Stocks. The nasdaq closing at another new high yesterday the five biggest tech giants making up the market cap lets look at yesterdays s p 500 winners and losers youre first. First to respond. First to put others lives before your own. And in an emergency, you need a network that puts you first. That connects you to technology to each other and to other agencies. Built with and for first responders. Firstnet. The only officially authorized Wireless Network for first responders. Because putting you first is our job. Good morning watching u. S. Equity futures after another update, you are looking at pressure. Futures down by 27 dow futures are by 160 that index has closed higher for eight Straight Days since the longest winning streak since november the s p 500 rose slightly yesterday. Now up 36 from its march closing lows for the month there, the quarter we are watching, it is looking impressive too on track for the First Quarter