Im back. Great to be back. Back in the stacks with the books. Yes, yeah the Library Stacks are nice i wanted to show everybody where things are headed on this monday morning. Is it always up . I guess maybe it opens it feels like that i was told not to invoke his name when i mentioned him the other week he says everything goes up and it all seemed so crazy dow about 160 points nasdaq looking to open about 69 points higher in the s p 500 looking to open about 16 points higher treasury yields right now, lets do it. Lets show you the ten year note as we speak youre looking right now at the ten year at. 636. Melissa has news happening overnight. News out of china overnight beijing announcing sanctions and a spokesperson and the move comes after a top member of chinas Ruling Communist Party and three other officials over human rights a b abuses. Bo well ask senator rubio about this when he joins us live at 8 00 a. M. Eastern time on squawk box. Separately the u. S. Asked its citizens to be high risk due to arbitrary detention. Citizens may be subjected to prolonged interrogations and detention or detained or deported for sending private electronic messages critical of chinas government australia advised its citizens not to travel to hong kong for similar reasons. Economic news out of beijing, Chinas Central Bank says it isnt planning much more stimulus as the economy recovers from a pandemic. An official telling reporters that special loan programs completed purposes and the economy will return to normal in the next half of the year. Stocks in china rose sharply overnight and the real winner at 3. 5 , andrew. Hey, thanks melissa and this is the first week of earnings if you can believe that and its going to be interesting to see what happens it will be the First Quarter as we all know impacted by the covid 19 pandemic. Earnings expected to fall by 34 . That will be the worst quarterly guidance performance jp morgan, citigroup, they all kick off the Earnings Report well hear about later this morning. The first of the fang stocks will get netflix that happens on thursday i wonder how much you can take away from netflix. Also a busy week from data well get the latest Consumer Price readings tomorrow and import prices on wednesday and well get the closely watched claims and Housing Starts data coming out on friday and as joe mentioned at the top of the show, we have a deal this morning, Analog Devices by rival maxim in a transaction its an all stock deal combined enterprise value of 68 billion. These are names that probably dont get enough attention on and off requesting time now i should say Analog Semiconductors are used in things, as if i know it, car batteries and the deal will create a big powerful competitor to Texas Instruments which joe, did you have a t. I. Calculator back in the day . You know i did. You didnt do equals it was like you put it in and thats very confusing. The deal, i dont like that 68 billion number thats a lot of debt its 20 billion. No, its a silly headline number. We dont need to deal in that type of hype i did see this though andrew i just saw that and im glad its not the front page. Thank you. Thank you for pointing that out. The virus perhaps. They may be effected i was watching the news. I am horrified when i see whats happening with cov irid and i always wait until 6 00 p. M. To see what the futures are going to do. Theres people assigned to different financial places and i think they had it ready to go. It was markets blank as covid prices spike and they either put in markets sell off or markets rise in spite they have nothing else and they either put in spite of or because of. Last night it was another in spite of but ill tell you one headline. Mad libs on a sunday night. One headline that disturbed me, i cant remember the date but it was in 2017, supposedly the overall market is flat except for five stocks and i know that you have seen that before i see that and i dont know whether i dont know whether thats really bad or really good i dont know whether that shows that most stocks are not way up there and have been going up in the face of all of the bad news or whether it shows that theres so much like in netflix, which is my life now i watch so many things on netflix now because i dont want to watch the news because the news is so depressing. I have a show for you joe money heist. What . Money heist. Money heist. Its good is this a series . Im on episode 10 of season one. Its in spanish but they dubbed it and the dubbing is amazing. Its an amazing show. Ill tell you my wife thinks its a little silly. Theres certain silly elements. You can watch the unsolved mysteries, thats pretty good. The epstein. Unsolved mysteries. Its back. Isnt that circa 1990. The epstein doc is a little boring but im glad they caught her. Okay. But did you see the but so graphic. We have to move on. And now have you seen it its very popular. No. Its british. A lot of stuff happening a lot of stuff. This is the headline that youre making fun of this conversation 607 about what were binging on netflix making fun of the earnings outlook. Is that obvious thats true what are you doing . Youre going i dont have any time i have twins i have no time for tv right now. This is bitter party of one right now that youre not able to all right. Lets go on. Peps pepsico is going to report core earnings coming in at 1. 32 and were going to go over these even actually. I think sarah is going to help us with that revenue of 16 billion also topping expectations so you only have an hour at night dont you . You only have an hour. Only an hour. Its my hour. You have to do three times as much. Well, you share it with like 12 of those whack i can tradey. Pepsi benefitting. Its breaking news late yesterday. The redskins are expected to announce that the team would retire the name. No new name was expected to be announced immediately because trademark issues are pending evidence 11 days ago fedex threatened to take its name off the team n stadium if it wasnt changed and nfl commissioner Roger Goodell said he was support i have of the new name theres a lot to go still. I forgot how many there are. Like florida state, conditions kansas city. You have to do that. Its just a lot of different i think even illinois, isnt it the fighting i mean i think theres just a lot if you start, its going to be hard to stop coming up, florida reports the biggest increase of any state during the pandemic. As we head to break, heres a check on a few stocks trading at all time highs dominos, adobe, tesla, clorox and nvidia to name just a few. Well be right back. Stock slices. For as little as 5, now anyone can own companies in the s p 500, even if their shares cost more. At 5 a slice, you could own Ten Companies for 50 instead of paying thousands. All Commission Free online. Schwab stock slices an easy way to start investing or to give the gift of stock ownership. Schwab. Own your tomorrow. Schwab. Simon pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. Touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. Florida reported more than 15,000 new coronavirus cases yesterday and thats the highest single day total for any u. S. State since the pandemic began and brings the total number of infections in the state to more than 260,000 florida reopened its economy in early may. Testing for the virus also ramped up and amid a spike in cases disneyworld welcomed back a limited number of visitors well have more and talk about this story but first letstalk to the former fda commissioner, cnbc contributor, on the board of alumina and pfizer and his new oped is entitled schools can open safely this fall. And you go into a lot of what that means in terms of being able to do that and you also you reference the politics surrounding this that it is a contentious issue doctor and when i saw the headline, i said scott is waiting right into the middle of this which takes some courage and saying you think it can be done. A lot of people say it should not be done at this point. What got you to that conclusion . Did you think about it and what would it take to do it safely you need to leave discretion to local School Districts to put in place measures that will prevent outbreaks. Some people will throw caution to the wind and say we shouldnt be worried about outbreaks because kids are less likely to catch the virus and less likely to spread it and thats true and less likely to have bad outcomes and the data does suggest that but less risk doesnt mean no risk and we have seen bad outcomes in some children and even though kids are less likely to spread the virus they compensate for that in terms of their behavior but they do things that make them more conducive to spreading and the viral load on the nasal swabs in children is just as high as adults that suggests they may be just as contagious so i think that local districts need discretion to put in place measures to try to avoid outbreaks. That might mean going toward a hybrid model where you have some Distance Learning during the week and some classroom earnings what would be regrettable is if districts were forced to put in place approaches to the school day that took away the discretion that they would have to implemented it and different districts may have different opportunities. To do it safely how much money do you think it will take . Everybody is strapped but its going to have to be federal . How much do you think it would take its hard to say. Ive had discussions with folks on capitol hill. I think that youre going to see money from congress to help support the schools. I think we need to take an approach, try to provide incentives in carrots rather than sticks. And opening into conditions that may not be conducive to try to control spread and certain things are going to become routine distancing between chairs. Theyre going to put in place conditions to try to keep students together so you dont have all the students intermingling and you keep students within a social network. Other things are prohibitive if we can get testing into the schools and do a better job of routine surveillance testing, that would be a high degree of oversight or protection. We also need to make sure that teachers get proper protective equipment. And they need to have ways to protect themselves and that might mean good masks if they can wear it during the day and change as appropriate. So theres controversy now about dr. Fauci. I think that hes great. Obviously. But am i wrong to say that doctors are about saving lives, protecting lives at all risk and theres sort of a tension between doctors and lets say someone a social worker that sees what happens in times when people dont have jobs or people are cooped up or whatever and they dont necessarily overlap completely and i dont know whether this this is a quote here that nearly twice as many people under 65 have died from overdoses as from covid. Would that surprise you . Does that put anything in perspective in terms of just highlighting that theres things to consider in terms of staying closed for example, if schools did not open at all, which a lot of people would like in the fall, do those benefits of opening the school even with the risk outweigh what happens to the economy and the negative things that happen from a closed economy . Its hard to even talk about it without people saying that youre callice or something but it needs to be taken into account, does it not look. Ive talked to republican and democratic governors and theyre all struggling with this and theyre all going to reopen schools in some fashion. I talked to michigan, connecticut, maryland, baker and massachusetts. And i think sometimes physicians are guilty of not looking at all the implications because youre not aware of the data. I dont think dr. Fauci is one of those physicians. Hes very schooled in this and he understands the imple kagss a implications and trade offs. Ive been in a room with him when he takes an expansive views. I dont think he necessarily would come down and agree with you on your oped today. But i dont know maybe he would or maybe he wouldnt but you two must have diverged on certain things i would think. Well, not really. I mean, tony and i, we collaborate on things and we have a lot of agreement around development of certain therapeutics and trying to bring new products to the market but i suspect he would see the trade offs inherent in not reopening the schools and look for a way to do it most people that i talk to want to get the schools open. The question is how and how worried are you about large outbreaks. And try to reduce the risk of them its a lot that we dont know about the virus and it has not been epidemic in children yet. We dont know what would happen if it got into 10 or 15 million kids as the flu does because we have largely sheltered children to date. Two things, by the way, just on the Drug Overdose number, 68,000 people died in 2018, thats the last cdc number that i can find under 65. On an age adjusted basis im sure that number may very well be right but just in terms of total death number for the year, 68,000 relative to the 130 were at right now. But were talking about its under 65 the risk for the disease, we talk about it again and again and again. Its where 95 of people can live under 65 or more go ahead doctor. Were Getting Better at it too. The question that i had, and schools should be open with a big asterix because you had 5 or 6 points and for this to actually workout and to workout well and the question that i really have is if you sited germany and denmark and cited israel separately we have gone down this road before but in the case germany and denmark its worked out. In the case of israel it didnt and there seems to be no Scientific Consensus about why that was except for the fact that germany and denmark didnt have lots of spread and israel did and so how many sits in this country do you think cant open right now. If you look at every other country including israel they reopen against the backdrop of having crushed their virus and reemerged after they reopen their economy and the only country that had schools open against the backdrop of a fair degree of spread with sweden and thats what everyone extrapolates from. We didnt study that systematically and there were prevalent studies done in that country so we really dont know action we also cant compare the swedish population of children to the u. S. We have more illness among young people in this country more asthma, more obesity, more diabetes theres going to be higher risk with our school aged population but in terms of the situation in the u. S. , i said this before, i think that its going to be very hard for certain states or certain cities to reopen on time and in fact, they might have to do it again. Its going to be much easier to reopen schools this fall in massachusetts or maryland or michigan than in miami or houston right now and i suspect some of these cities are going to have to delay their openings even if they havent done that yet because when youre in a situation where your hospitals are overrun, your morgues are overrun. You cant get enough medical personnel. Youre not going to take a step that you know on the margin is going to increase spread you cant argue that opening the schools isnt going to have some impact on additional spread even if its just among the teachers but the students themselves, the evidence shows that they are vectors. And so when youre right on the precipice and might be able to do this. The number one thing to do is get your spread under control. Thats what the city should be focused on. So with all of that said, do you think disneyworld should have opened on saturday. In a state where covid cases were spiking its a place where lots of children go from all parts of the country. They pushed very hard to get it open. I would have prioritized opening up things like schools things like business that contributed to the gdp, disney is an important part of florida. I wouldnt have opened the indoor setting disney is a separate matter because most of it is outside. Im not sure how theyre opening but bars and restaurants should have been last on the list if you were trying to prioritize getting yourself into a situation to be able to open your schools you would have put off opening the bars this seems to spread very efficiently. Indoor settings particularly in air conditioning which seems to suggest its sort of a vehicle to spread and remember with sort of airborne or droplet transmission, thats not binary. It exists on a continuum and something with droplet transmission, this may well be droplet transmission can proximate airborne transmission under optimal circumstances and thats indoor settings with certain kinds of air flow and those are the sen yovenues i wot have opened first. I know that you look at all the numbers and florida is setting records for new cases. Are you seeing the troubling rise in deaths and hospitalizations i do see that everybody seems like they have a horse in this race and trying to point things out or because its in a younger demo, are you seeing less icu and less hospitalization than you would expect and then is it still at a point where the Health Care System was not overwhelmed in florida so previously, depending on the study you were looking at was 20 to 30 . I wouldnt be surprised if we cut it in half i wouldnt be surprised if its 10 now but were hospitalizing a lot of patients. They were admitted to the hospital and even if its only 10 dramatically, 10 is still alive. Were also seeing positivity going up among older people and were seeing this get into Nursing Homes again. 40 of the deaths in texas right now are people in Nursing Homes. Something that started in younger people is now seeping into an older population. So theres a lag and its and we have gotten better at it. It will go off but maybe its times of diagnosis and times of death were diagnosing people a lot earlier so we used to diagnose them and diagnose them a week before we get into the hospital. Its gotten a little longer. It was crazy the market was down about 150 points closed off almost 400 when we read it, it was tough to see why it was brand new or refining the data we already had but it was taken positively. It was prespecified but it was a study looking at match controls that were enrolled to different sites. And it needs to be confirmed well dig into the school question more. Coming up when we return exclusive new data that shows how