Good morning, everybody. Welcome to squawk box here on cnbc but this comes after a backdrop of a pretty big decline on friday on friday the dow was down by 700 points and this morning its up by 200 points you have the s p up by close to 20 points and the nasdaq up by 26 but we are getting to the end of the month and thats when we start to take notice of what has been happening with declines that we saw on friday push the dow and s p 500 into negative territory for the month of june. If they want to make that up they have two trading sessions left before we get to july so over the next two days the dow would have to make up 1. 5 if it wants to be positive for the month of june. S p would be up 1. 2 its up by 2. 8 . Lets take a look at what has been happening with the treasury market the treasury yield the ten year is the one that we always pay the most attention to it seems to be yielding. 645 . And i think he is going to have interesting things to say too in terms of trying to put it in perspective because if all you head were the headlines you would be scared to death and ready to bury your head in the sand im not sure that the economy, im not sure that thats going to be what happens. I will say that there was some eye opening stuff that happened over the weekend. Not just in terms of the cases but hearing on friday the state of new jersey what their plans are for school in the fall it was the first time i really thought wow, its not going to look like normal in the fall again too. Its going to be a totally different kind of school year. Well have to take this seriously for awhile thats not to say that the kids wont go back to school but its going to be different. We have to try to manage this for six month in his view. Thats a total hypothetical. Thats counting on Clinical Trials and counting on i mean, you saw the news in china that theyre already getting a vaccine that they think might work theres a lot of hope but once again, the future is crazy and they just i was actually talking yesterday because i was anticipating the open because it was such a week last week in terms of what happened with the cases. And the market was down 3. 5 or whatever and i was trying to figure out whether the futures would be higher or lower today by all of that and given what had happened and all the news and the incremental news that we saw but then i thought, do you know what, im not sure what needs a reality check. Im not sure if the market needs a reality check or whether the coverage of covid and the hyperbolic coverage needs a reality check. I dont know but i thought we would be up this morning i talked it over for awhile and theres no reason to be up so again the knee jerk reaction of what is happening behind the scenes. Theyre not thinking about lives as we all know 12 months from now and you believe the six month calculation that he was making that might make sense and at the same time, if you think that the headlines, i wouldnt contend theyre hyperbolic but if you keep giving the fact that we have more hospitalizations and potentially and i think that we dont know what the next ten days are going to look like in terms of death or not. Much lower death rates. And hopefully they will be a lot lower. And then he thinks a third of the country or more wont take the vaccine. So theidea of herd immunity an the idea that this vaccine is going to be this Game Changing situation, it may be for certain people and we can hope but it does extend out the time line for what this locks like. We can also talk about whether its herd immunity and whether they atenuate and well get a jobs number on thursday after that surprising number that we got on the last job number which should give us sort of a not a snapshot but a backwards look at how much the economy is reopening i can just tell you that theres a lot of people around and maybe that is bad. Maybe everybody has cabin fever and everybody is coming out now and maybe that adds to the new cases. Jersey is still doing great. A lot of states this is the first ave. And i am sure that he will be sober and realistic about things. He joins us right now his latest wall street journal is titled reinvent health care he is a former commissioner and cnbc contributor and serves on the board of alumina and pfizer. Its good to see you this morning. Thanks. What do you think about the conversation that were having this morning how do you come down on this well, i think that the concern about what is going on in the south and the southeast right now is its pretty far along. Its pretty persuasive. Thats the concern well know well see soon what happens this week but it does appear that theres a lot of infection down there. During the first wave of infection and that wont stay that way eventually it will start to seep into all the more Vulnerable People and even if the death rate has come down the total number of deaths will come up and well get above 1,000 deaths a day above average as the infection starts to widen out. Thats the concern and the cases are accelerating pretty quickly. Its going to be hard. A lot are probably going to balk at that right now. You saw texas and florida the governors there resistant to rolling back the openings that they have done but now the governor of texas has closed the bars, is closing bars. Youve seen the same thing in seven counts ies in california. In florida theyre closing the beaches for the fourth of july it may be late but is it enough at this point . You talk to people and the doctors down in florida and the houston region, people cant get tested again it sounds like a new york type situation unfolding down in there so its going to be difficult to get control of it at this point. So at the end of the day we talk about the vaccine. We will have a vaccine in 2021 theres a lot of progress on that publicly reported but right now the doubling time is every 40 days and its going to come down by the time we get to the end of this year probably close to half of the population will have had coronavirus so we dont need to vaccinate the entire population. And its the rate that you imagine Something Like this would be early on. Talked about a couple of other efforts not related to covid that finally got up there to in the 90s but early on youll be much lower and also his expectations that at least in the initial stages much of the country wont actually take the vaccine. And you still get infected with covid. We wont need more than 40 of the vaccination to get vaccinated for the covid disease. Only 40 of people take the flu vaccine every year we have people that already had coronavirus. So we wont need to vaccinate8 or 90 of the population or 60 of the population. Only 30 of the population because a lot of people will have had it. Probably 7 had it already right now. We continue on our current rate of 15 will have it by the end of the summer if we just continue where we are right now. We get into all the outbreaks in the south. So we will slowly burn our way toward herd immunity as we get into the fall and the winter the challenge is going to be the fall when flu starts circulating and people have the flu and then youre testing for covid for people that have the flu as well its going to exhaust our systems and were going to have a difficult fall thats why its very important to get vaccinated for the flu early so we can cut flu incidents and have more sensitivity on covid going into the fall theres nothing that is very clear about what the backstop is i dont understand what theyre doing or what theyre willing to do thats really going to dramatically cut the level of spread that theyre having so they take something close to this level of spread into august and they really School Districts need to make the decisions in august. I think local districts acting independently are going to be hard pressed to open the schools. So thats the challenge that they face. Thats what they should be thinking about its not just a matter of keeping the bars and the restaurants and tattoo parlors open its a question of trying to get the infection rate down so they can open the schools that is a gating factor to getting back to a healthy economy. Trying to get children back to schools. They need to be focused on that as a policy action they have to take. I was at the beach this weekend. I didnt see a Single Person wearing a mask and there were a lot of people there. What makes you think that were going to be at this same level of in the northeast the same level of case load when you have the businesses that are just reopening it took weeks and weeks to build into the kinds of case loads that they are seeing right now. Were going to have the same thing here eventually were going to have a change of transmission that billed into broader outbreaks in the northeast. We have better testing and tracking and thats going to put down a pressure on it and we have a population that is generally taking more precautions so thats going to put downward pressure on it. But eventually cases will build here well have to put out the change of transmission but as we get into the fall and the winter and flu season is going to get much more difficult but this takes a long time to build. This doesnt happen in a couple of weeks what is happening in those states down there. So a month or more to build into the kind of infection rates that theyre seeing right now your oped today addresses what you think the Health Care System needs to be doing differently to deal with this over the next six months or longer the most important things that you layout are that some of these nonessential surgeries do need to get put off. Texas hospitals are the best illustration of that they went back to almost a full volume of elective procedures. They stopped doing telehealth and if you look at parts of texas its very easy to get a covid test for preop or elective surgery. But you cant get it with long late lines and long delays on turn around so i think when they do rebound and we get these infection rates down we need to Practice Medicine differently at least while were in this pandemic phase we need to do more tell healehe and be more circumspect about procedures and thats hard to do because its a big financial hit so we need to think about different ways to pay hospitals during this period so they get paid, for example, for covid management and get paid for maintaining extra capacity certain elective procedures are important and we need to make sure that theyre available to patients and theres pent up demand for certain procedures. Patients were waiting for hips and knee replacements that they were badly in need of so things had to get done but we went right back to business as usual. Practicing medicine the same old way and that put a lot of pressure on the Health Care System down there in texas and exacerbated the system to the point where they had to just spend all elective procedures that obviously hurts everyone equality. Thank you its great talking to you this morning and again, every morning we have a new list of questions for you. Thanks for being here. Thanksa lot all right coming up, one of the reasons the dow is up triple digits is because of boeing. Boeing shares are higher today up 6 points or so so that is maybe a third of the dows gains. Word that certification flights for the ground at 737 max could begin today. Details next futures right now are up 150 on the dow and similar percentage gains. Not quite as much on the nasdaq this morning only up three. Were currently back the best tv experience just got better because now you can watch all your favorite hulu shows and movies on xfinity. Youre only a voice command away from Award Winning shows like the handmaids tale, to new hits like little fires everywhere. And fx originals you can only watch on hulu. Thats just the beginning of what you can experience with hulu on xfinity. Tv made simple, easy, awesome. Keep in mind, phil is going to join us in the next hour with a closer look at what the flight tests will entail and how soon the grounded planes could return to service thanks. Chesapeake energy filed for bankruptcy yesterday they had drilling rights to nearly 15 million acres. Thats roughly the size of West Virginia but the company was slower than competitors at pivoting from natural gas that proved to be far more lucrative than gas. It was a company with a market cap of about 40 billion at its height thats very likely going to go to zero. It listed assets of 16. 2 billion and then liabilities up 11. 8 billion in the next hour well talk about some struggling with low energy prices. Its the very deep Balance Sheets safe in this and theres been a lot of companies in this arena that filed for bankruptcy already this year. Promising to have discussions internally and with Media Companies to stop the spread of hate speech. The company will continue to post on social media without paid promotions. Starbucks now joining a growing movement of companies halting add spending on social media platforms including coke, unilever a little bit later well tell you that we have a conversation with the head of the Anti Defamation League that put this front and center we had this last week and youll see what they have done for the last month and well see the impact that has on facebook and their policies when we come back, a lot more important tests happen tonight details on millions of dollars of masterpieces that are up for sale well talk about it after the break. Plus a look at the s p 500 some see a Grilled Cheese sandwich and ask, why . I see a new kitchen with a grill and ask, why not . I really need to start adding less to cart and more to savings. Sitting on this couch so long made me want to make some changes. Starting with this couch. Yeah, i need a house with a different view. And this is the bank that will help you do it all. Because at u. S. Bank, our people are dedicated to turning your new inspiration into your next pursuit. To turning your new inspiration music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Can i get it 100,000 maybe not. Not here but there are great pieces now you talk about industries that have been radically transformed by this crisis sothebys held over 100 online auctions since march that is a total of 200 million. That is ten times the total last year and it will be tonight thats the virtual live auction totaling more than 250 million. Now the auctioneer will be in london with video screens showing his colleagues in new york and hong kong those colleagues will be taking phone bids from buyers around the world so there will not be bidders physically in the room and theyll also take bids online all eyes will be on this and that is estimated to sell for 60 million. Now they also have a rare painting estimated at up to 35 million and that is estimated up to 30 million. Any time that you do anything for the first time theres always a degree of stepping into the unknown. That said, so much in previous auctions was already happening over the phone and online and i dont view this technologically as a huge leap now they have more than 80 online sales for the rest of the year and the big one is in july. And this is a big step into the unknown. Theyll look to see whether the future of this business is tless is big events in the auction room and more online. Number one, that looked nothing like clifford the big red dog. That was horrible. I guess it was an abtract. You know, Francis Bacon had it from a couple of years ago or whatever theyre called and it was a gauge of sentiment a couple of years agatha you covered. Wasnt that a Francis Bacon too as i recall . Great memory. So elaine wynn bought the last one to come up to market for 140 million that was back in 2013. So this is also a great piece estimated at 60 and could go higher youre right that was a huge record breaker at the time. Over 130 million. So robert, i think this is interesting because people that have a lot of money, their stock portfolios are not that bad off. So im wondering whether valuations, if there was a price to earnings multiple or whether uncertainty and fear for the future could be more of a draw back for something as intangible as art so this is an important thing. No, youre right but all the prices have changed during covid and tonight we havent had big price discovery at the top of the market until tonight so yes they still have the money but its a question of what theyre willing to pay for some of these guys. These are good assets that can hold value over a long period of time. Do they buy a piece of art or buy an island and set up their own little fortress where they can wait out the pandemic. I dont know its different its different than just Financial Assets it goes out on the risk curve each further lets do three. Did he do that a lot triple the price. I dont think i had too many art classes in college or grad school anyway, thank you robert frank we appreciate it. Thank you. Clifford with a y by the way. It was not the big red dog. Its the way it was in the prompter. When we come back stocks are pointing to gains after fridays sell off well talk strategy next and later well talk to mark, the ceo of houston Methodist Hospital about the surge of cases in texas and the restrictions that were added on friday squawk box will be right back. 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. And their financial wellbeing. Since our beginning, our business has been people. Its evident in good times, 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. Good morning, welcome back to squawk box. Take a look at u. S. Equity futures on this monday morning were in the green in fact, the dow looks like it would open 152 points higher and largely on the back of news from boeing well talk about that in a minute joining us right now to talk strategy is john trainer the cio at peoples united advisory. Also ellen the Portfolio Manager at flputman. Good morning to you. We have been trying to make sense of the market and trying to look at the headlines on one end around covid and where the markets