Andrew ross sorkin with joe kernen becky is off again today a little in the red. The treasury yields and earnings that may have an impact on all of this. The 10year note, we are now below. 6 we are down to. 592 we can debate what that means for today. Discussing Market Recovery and earnings Kansas City Southern and United Airlines ceo and health and Human Services secretary you want to stay tuned to squauchl the nasdaq down pretty significantly. It was up two or three hundred. It was up and did you know and up and down. It was really crazy. You heard cramer talking about that it was truly crazy. Insanity. The didnt hold on to the big gains. I think it was down almost 300 when cooperating on that at the end of the day, well see. I heard it said, well, you gave him an out he could have been resting on his laurels by now saying i would at least nuance it so i could claim to have been right if we had extended here. Doesnt it feel extended here. If i were paulson. Fur trying to be right all the time what do you think a good average would be a good average of what . Being right about the stock market 70 of the time would be respectable. Young buffett it has to be better than throwing a dart. But it is not i know. Thats what is crazy it is not. If we didnt throw that, wed have one here. I wanted to have a squawk box chimp on the set to throw darts. See who does better. It would be great tv what was the famous chimps name that poor thing. Do you remember . What was it . Im sure you know. Bubbles . Was it bubbles yes that sounds right bubbles how appropriate interesting, they moved the chimp because they were worried that the chimp would hurt the children. They are definitely not like dogs i dont think. Doe meft indicated dogs can snap and stuff but i wouldnt trust a chimp. My Favorite Book was Curious George i always wanted to have a chimp. By the way, that wasnt a real chimp that was a drawing the more you know what aboutrainbow the cartoon. Did you have a yellow hat the guy with the yellow hat. He was a very kindly guy, i thought. He was adorable. Okay well go he was those cute little sounds and everything serious story coming up. The deterioration on u. S. china relations. The u. S. Ordered china to close its houston kons late. The u. S. State Department Said it directed the closure in order to protect u. S. Intellectual property a spokesperson said the u. S. Will not tolerate the safety of our information. A report of a fire on the roof top of the consulate video of someone who lived nearby showed open bins. They didnt even use shredders there you could sort of put stuff back together. But burning is serious i think the way it is being viewed here especially on social media is that the staff were in a rush of the order. There has been some upset because of the way this is being treated. The Counter Measures being called political provocation it is said to be a move by President Trump as a distraction to blame china, yet again ahead of the u. S. Election another popular theory going around is that the u. S. Is trying to force china to allow more american diplomats to return to the country, the negotiations for the return has been very slow going the information is that they will retaliate the embassy is here in beijing but the u. S. Has several consulates around the country. Just the global times editor and chief said that the staff in houston has 72 hours to close shop so if you are in one of the states the consulate cover and maybe have any business there that this cover. This is like alabama, arkansas, florida, texas, puerto rico. What is sad is that this is chinas First Consulate established in 1979 when diplomatic relations had first been established the atmospherics at that point were a lot more optimistic than they are right now that was like table tennis diplomacy. That was probably 69, wasnt it when it first opened i think the chinese have been playing table tennis quite some time, yes. Do you remember thats how our initial overturn to china playing table tennis. You dont remember you didnt see the moon landing either, did you . Admit it i dont think anyone here did, except me ive seen it on tv afterwards i dont mean apollo 11. It happened. When it first happened we had relations i wonder if the very First Consulate survived i dont know. The u. S. Hasnt been clear on why they decided to shut that consulate in houston it sounds like what the state department says, there is some decision around protecting american data as well as American Intellectual property wanting to make sure that information is reciprocal it seems to suggest the reason why. At this point, it is still a guessing game. We are hoping phase one sticks we wouldnt do anything until phase two until after the election at this point, who knows thanks well check back in as this story develops all right, man in the yellow hat. Am i the man in the yellow hat . I dont know it was the whole suit melissa. Remember, you were bidding on the one glove but it went for too much money, right . As a kid. That was me many, many years ago i bid on the glove and i lost. There was more than one, wasnt there there were many, many more than one there are a lot of questions before all the issues with Michael Jackson but a lot of them coming up on the other end, a change in the tone of the president. Well get reaction from dr. Scott gottlieb elon musk qualifies for 2. 1 billion payout after the six month average market cap has reached 160 trillion triggering the second bit of vesting and traunchs to buy teslas stock. He has ever reason to dance at this point well see whether the stock stays where it is at theyll meet a major requirement four straight quarters of gap profits. Well talk about it t sonhehow later. Back in a moment save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Welcome back to squawk box. President trump is taking control. Yesterday on the Coronavirus Task force briefing. Said americans should wear a mask when social distancing was not available and a warning about the virus. We are in the process of developing a strategy that is going to be very, very powerful. We develop them as we are going on some areas of our country are doing well other areas are doing less well. It will unfortunately get worse before it gets better. California, texas and florida continue to see the rise in cases. California has surpassed new york as the state with the most infections texas and florida hit a grim record with a record of daily coronavirus deaths dr. Scott gottlieb is here with us today want to start with what appears to be a shift on the messaging from the white house the epicenters are shifting you mentioned california, texas and florida. Those states will start to peak in two or three weeks. The virus will shift to other parts of the country georgia looks like it is heating up, missouri, kentucky, tennessee. We have an expanding epidemic nationally even as it starts to peak in certain states and it will take a while to get it under control in florida as it hit the upper limit of Testing Capacity and will run its course for the time being. Youll see a new epicenter for the spread we are far from done with this is there anything we can do about that my question is if we made you the covid czar of the country, what would you be doing to end it without closing down the entire economy right we have the inspector right now where parts of the country are making decisions to close the schools but the bars and restaurants will stay open we need to make a decision of what we are willing to keep open until we get to the other side of this. The other side is probably four to six months. You can control the spread what is happening in the south in texas and florida, california and arizona, the reason why it may peek in several weeks, if you look at google mobility andres everybodiation reservation data declining if we all decrease activity a little bit and adhere to masks, that could adhere things important to us including sending our kids to school there are ways to keep this under control. Some states have chosen not to do that. Thats what we feed to find ultimately in our country. You said and these are hard facts. Maybe as many as 50 of people eventually have the virus at some point as it goes through the population i dont know if youve changed that notion. Ive seen even worse click bait that says well all get it over the years unless you get the vaccine. The latest fatality, the most complete study yet lets do that. 5 and if there are 300 Million People in the country, lets say 200 Million People are not in far out rural areas. Thats a Million People can you flatten. There is one model where you try to flatten it out over time and hope somewhere along the line that vaccine comes in. How do you stop it if the rate of transmission slows down as more people get infected once you get to 30 or 40 of the population, youll see the spread start to slow because of what they do, the way they work, jobs they have to engage in. Once they get infected, it is not going to transfer as efficiently. Well continue to see this spread we are infecting 2 million to 5 million a week right now well see this continue to spread 30 times 25 if you dont change that, you could change the math. We are preserving more lives in the hospital when i talk to physicians treating patients, they say it could be cut in half right now, well break our old record in terms of hospitalizations we are at 59,000 now even if we end up preserving more life in the hospital, which we are doing if we end up hospitalizing more patients, well end up with more casualties arent there documents now in terms of antibodies showing the half life is shorter than we thought. How does that change the notion of a vaccine in even the Research Phase they are vaccines that need research down the line they start to take quickly. Like sars and mers, you get antibody that is enduring. It might be more like a seasonal immunity so people who may have had coronavirus in march or april, by this fall and winter, you may be susceptible if you get reinfected, you might not get as ill you could get infected against and pass that on you could need a seasonal vaccine. Youll get it in advance of every coronavirus season thats what i was going to ask you about. Weve talked about the vaccines and the developments on the they are ptherapeutic end. Remdesivir you can just take in an inhaler you get from walking into walgreens with a doctors prescription that information that could be used as well as the treatment. Those doses not as effective as a prophylaxis. Likely from merck will be and inhospital used drug. It might have activity like coronavirus. It underscores a fact that well improve hospital mortality that death rate that joe is reporting could come down even more that could show improving there. That is the optimistic side of the ee equation coming up, twitter crackdown on a Conspiracy Theory and bill 5 0man talking about his new Blank Check Company debuting today. Well be right back. Announcer todays big number, 7 billion thats the maximum total value of bill ackmans new special Interest Acquisition CompaniesPershing Square set to be the biggest blank check holding when it begins trading today. And Northern Trust delivers more. With specialized expertise. Proven strategies rooted in data and analytics. And insights borne from over 130 years of successfully navigating economic turbulence. Giving you new clarity. Inspiring confidence. And helping you uncover new paths forward. Northern trust. Wealth management. My father my grandmother my brothers and sisters my friends for going back to school the bbq the lake the beach my place for my neighbors my community my people my country my home for him for her for them for you. Welcome back twitter announced it has begun to take sweeping action to crack down on qanon content with harassment and the spread of misinformation the action will affect about 150,000 accounts from a twitter spokesperson who asked to remain nameless in fear of harassment twitter has taken down 7,000 qanon accounts for breaking harassment rules last year, fbi labeled qanon as a potential terror threat. We are seeing more ahead of what will happen with Mark Zuckerberg not with twitter but other Big Tech Companies we are a week out from a big hearing that will have something to do with free speech, skensorship and what is allowed on these platforms that and earnings twitter to report after the bell and facebook next week speaking of some movers here, best buy shares are rising sales up. 5 on saturday up from last year online sales were up 255 pirs. Best buy has brought back about half of furloughed employees and will give all employees 4 an hour raise shares are up 2. 2 they are in the sweet spot people have extra money because of stimulus checks and might be spending more on the work from home set up or the school set up that is all of the things we need the demise of brick and mortgage, and especially for people who may not be so great at hooking up my own wifi stuff. Or even just going in and shopping there a lot of people might shop there and buy on amazon. A lot of people actually like the support of the geek squad. Theyve got a unique niche where best buy can add the value waited service where people might not be as tech savvy for people who work from home. You look at the rise of netflix and streaming. We need big flat screen tvs. We need those now more than ever maybe not on this show so much let me back up more here that a little better the lighting is bad back there sorkin, i dont know who does your makeup. Youve never looked better i dont understand this whole thing and nobody knows do you have a hair person . A makeup person . A clothing person . What is the size of the staff. I do it all myself. Ive got the brush here like this has how it goes. I take a shower in the morning, i pat down the hair. Thats how it works. No way. Unbelievable we got three lights not a lot of action here. Three lights and it is better than the studio lighting that is messed up. Maybe the cellings are lower or something. Cellings are lower. Thank you. You are looking good my friend ive decided the hair, melissa, you mentioned it, being whatever you call this ive decided i like my hair longer so im going to go with it i think your hair looks good. Thank you when you say that, it endears me to you indefinitely. Permanently. Coming up, stock strategy. Well hear from microsoft, tesla, chipolte. A 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. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com good morning, u. S. Equity futures are weaker on the dow. The nasdaq was down 80 points or so up about 35 today. Speaking of the nasdaq, retail trading sustained record volumes. The report from Online Brokers tdameritrade added 660 new retail accounts after 600,000 were added in the First Quarter. They were acquired by Charles Schwab more than four times the levels from a year ago. Interactive brokers said revenue trades increased 111 year over year last year, Charles Schwab reported similar surges in trading activity and new accounts melissa. Still early but this earnings season is expected to be the worst since the financial crisis well below a year ago levels that hasnt stopped stocks from rising what that means for the market the Portfolio Management the market measure you always want to go to earnings with low xpectations. You have a number of value that expectation is bad some of the Economic Data has improved and been better than what is predicted and yet earnings estimates havent followed better than expected Economic Data. A lot of lower expectations into earning is great that is not true they are much more vulnerable because expectations are sky high you have a very bifurcated market you have a lot of earnings going into the market season right you are more focused on the value stocks on those or positions on high fliers like tesla as well . Im a core manager. We are slowly moving our bias towards more valued stocks coming out of recession, you can make a lot of money out of these stocks they are anxious theyve had a pull back recently in a set up. Where you make the biggest money. That happened in 2009 and in the year 2000. The flip side, you have expensive stock. Skyhigh valuation i think they are getting to a level they were in the year 2000 before the bubble burst. You have a very, very big spread between the reopening stock and the nasdaq the s p 500 is high for the year and hit a fresh record high for the session. Are the markets looking past right now. The november elections are around the corner. We have increasing tensions with china and the closure of the consulate in houston the markets dont seem to be factoring in any of these. I th