Blake burman with the latest from the white house. Lauren simonetti is watching the markets. Edward lawrence in washington. Lets kick it off with lauren. Lauren hey, guys, two days of severe loss on wall street. Dow, nasdaq, s p 500 closing near the lows of the session. The past two days, during that time, the Dow Jones Industrial average has given up 1200 points. Nasdaq gave up 400 points last two days. If you look at s p sectors, communication services, technology, were worth performing Services Apple shares down three today. Believe it or not, and go figure that energy was the bestperforming sector although it was still negative. Let me show you the price of oil because as oil fell, so too did stock prices overall. Youre looking at may contract which expired. It closed at 10. Look at the june contract, 13. July, not much higher. Were seeing oil prices even in the future, all trading in tandem to the downside. The worry is is that demand is contracting charles lauren, well stop you right there, because we have netflix. Lets go to connell. Connell fox business alert. Melissa, it is coming out. Were looking at headlines, revenue of 5. 77 billion for the most recent quarter is better than expected. Stock ticking up 6 in afterhours trading. Now earnings were 1. 57. The expectation there was 1. 65. Now assuming those are comparable numbers, the earnings results, earnings per share would be just a little bit below expectations but again revenue is better than expected. Were already looking at guidance which also might be better than expected. I will look through it, as we look at netflix Second Quarter, one thing you say about netflix, melissa. You get reaction. Come back with more on the numbers, for all the companies, we had ibm yesterday, so Many Companies reporting, hardly anybody gives guidance. Just the idea that netflix sees enough hey were going to earn 1. 81 a share in Second Quarter. Well have 6 billion plus revenue in the Second Quarter, that would be seen as a positive. Some of the streaming paid membership numbers are starting to come out. Paid net additions of 15. 8 million in the first quarter. That is a global streaming number. Looking for an overall number on net subscriber additions. Wait for that headline to come out. To recap real quick. Well come back to talk about the guidance in some detail, melissa. 1. 57 a share. Little bit light. But the revenue figure is better. Netflix has enough to give us guidance Going Forward. Stock is up already 10 . There you go. Medical. We have deon a boone, deion, let me start with you, what is your reaction to the numbers we just heard . Those numbers are good, very good. This is really when netflix had the time. They delivered big for the street and they did. See reaction in the stock price. Going last i saw above 460 a share on these things. Definitely welldeserved. Netflix has a real opportunity here to capture market share that it may never get back and continue to shine for investors. Liz that brings me to the next question, if it is at an alltime high, it picked up all the subscribers, because were all stuck in the house, i wonder is as as good as it gets . Is it a stock you would get into right now, or would you take your winnings on the table and sell like crazy . Melissa, the one thing you never want to do with netflix is sell the stock. Its with the best performer over the last decade this is great news. Market needed good news. The only negative in the picture they cant make any films. They cant produce any content right now. So, there is some question, are they going to be able to keep the channels filled with exciting new material but on the other hand, melissa, whats the alternative if youre sitting at home . [laughter]. Melissa well, i mean, adam, why dont you speak to that. Whats your alternative . There are a lot of other services out there, streaming services and in the same way i only bought from amazon before all this started and then because ive been stuck inside for so long and everyone else bought from amazon i had to branch out to discover new things i will keep doing afterwards. Is it possible with netflix too, that people have gone through everything on netflix, now theyre discovering other streaming services and maybe you know, again is this as good as it gets for netflix . What are your thoughts . Well it is certainly possible. One thing that skeptics will want to get into, what is the churn rate, the rate at which people are canceling as opposed to rate people are subscribing because some percentage of their audience will look to cut costs because theyre cutting costs in the household and they log off. That doesnt seem to be the theme of the day or the theme of the quarter. There may be alternatives to netflix but none of their competitors are making new shows right now either. Keep in mind from a financial perspective, im sure they discuss that, when they cant make films production costs go down. That will improve profitability such as it is. Melissa interesting. Yeah, no, thats a great point. Now it is a company more valuable than disney. Connell, i hand it over to you. Connell one of the things i would add, melissa, deon would weigh in, i was making the point going through the headlines hardly he anybody is giving us out look in it environment. Netflix says they will earn a lot more than people thought. 1. 18 is the out look. Estimates 1. 66. Estimate is under six on revenue. Think about that, deon, in a environment almost nobody knows where the future holds netflix says we do, it will be a lot better than you thought. What do you make of that . Yeah i think this may be a time that netflix out kicked its coverage a little bit. As i was saying theyre in the sweet spot right now. This is the time when people first started getting laid off. Getting stayathome orders. What is first thing you want to do, flip on netflix and bingewatch the favorite show. As we go forward, we had 22 million layoffs that we know off. Potentially 30 million. Unemployment rate hitting potentially 10 or higher. As more folks start to get laid off, lose their jobs, the prospects for getting a new job look dimmer you have to start thinking what will i cut back . Do i want to move to disney plus which of is a little cheaper . Do i use a friends netflix account instead of getting my own. Things like that could start to hurt them. As well as when the coronavirus hits emerging markets where netflix is expanding on Expansion International that could really hurt them as well in terms of number of subscribers and in terms of the growth rate. Those are things they have to watch out for. As you said 1 5 of the s p is not even providing guidance. The fact netflix comes out with this number shows theyre very confident, maybe a little too confident. Connell thats interesting. Adam, what would you say about that assertion or prediction from deon, maybe netflix out kicks its coverage . It is providing positive guidance, better than expected Going Forward and on on the subscriber number netflix reporting more paid subscribers than expected when were all locked down watching netflix every day but could they be getting ahead of themselves . This is a cliche. This is where investors earn their living. On one hand it is surprising and reassuring they are this rare company that can provide guidance. On the other hand it is not that surprising because their entire revenue base is based on their subscriptions which they know and they have a fairly accurate way of guessing at what their cancellations will be. They just know with great certainty what the next quarter looks like and, theyre able to, theyre able to provide that. Now you as an investor, not for tomorrow or next tuesday but, if into the next quarter you need to decide how long this holds. Netflix, netflix is not telling you. Connell interesting by the way, the stock has come off the highs a little bit at 4. 50 and change right now. So it is still up 3, 4 . It was up nine or 10 earlier. If it was to close there it would be a record tomorrow. Liz peek, final word on this. Youve been locked inside watching tiger king for pretty much the entire time on the quarantine. You got her. Connell there you go. That is the amazing thing, right . They keep coming up with pretty big winners. Look, i think the whole streaming wars issue is just not much of an issue when so many people have become their audience overnight. Look i think numbers are going to be good over the next six months or so. Adam is right, this is something you can cut back on, man, i think it is pretty far down the list. Connell all right, guys. Thanks too everybody, liz, and adam and dion, good analysis. Better than expected figures from netflix. More to come. Melissa. Melissa somebody had to get the phone there. More than 2. 5 million cases worldwide. This as the u. S. Surpasses 800,000. At least 18 states announcing some plans to ease restrictions due to the coronavirus by may 1st as local leaders continue to trap pell how to reopen their economies. Could be a major strategy shift. Well have the latest other than the pandemic later this hour. President trump meeting with new York Governor Andrew Cuomo at the white house later this hour. As the state struggles to ramp up testing capabilities. We have the latest on that meeting when we come back. Its best we stay apart for a bit, but that doesnt mean youre in this alone. Were automatically refunding our customers a portion of their personal auto premiums. Were also offering flexible Payment Options for those whove been financially affected by the crisis. 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I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Connell this idea of forging a better relationship between the federal government, state government, highly anticipated meeting at the white house today. Governor of new york andrew cuomo meeting with President Trump and they have a lot of back and forth between these two especially in recent days. Lets bring in blake burman as always monitoring that situation. Theyre meeting now, blake or supposed to be . Reporter they should be meeting now. You guys have been talking about netflix. This cocabinet flicks series in its own right between the president and governor of new york especially what weve seen over the last few days. They have largely played nice in the weeks leading up to this but last week there was a very public spat between the two about the role Going Forward with the federal government as it relates to funding and to testing. During his daily News Conference earlier this morning the new york governor said testing would be his main priority for todays discussion. Listen. Testing and what does testing mean and how do we do it and how can the federal government work in partnership with the states. From my point of view i think the federal government has to take that National Manufacturer supply chain issue. Reporter they will be talking about that now. Earlier today as well new yorks mayor, bill de blasio warned that states and cities could go bankrupt if the federal government doesnt further help out with funding. In a tweet this afternoon urging congress to pass the phase four relief package that was agreed upon this afternoon, President Trump signaled that help for states is at the top of the next priority list. This is part of his tweet earlier today. He said, quote, after i sign this bill, middle ever the tweet there, we will begin discussions on the next legislative initiative with Fiscal Relief to, state, local governments for lost revenues from covid19, muchneeded infrastructure and broadband and entertainment and sports and payroll tax cuts to increase economic growth. Connell there is the 2. 2 trillions cares act. Interim package just shy of 500 billion. Now you have already got the president and other state leaders pushing for a phase four or phase five however you want to add it up at this point in time. Connell . Connell all right. Blake, keep us updated. Melissa. Melissa here now is new york city councilman Steven Levine who joins us again. You have been on top of this issue from the beginning and one thing i would ask you, it frustrates to me to see our lawmakers going to washington asking for money, then you see things like our entire Homeless Population moved on to the subways. They are not socially distancing themselves, putting themselves at risk, putting our Health Care Workers who get on the subway at risk. You have pointed out there are lots of people traveling from outer boroughs to work at hospitals, to be Health Care Workers, to work at grocery stores, putting their lives at risk as well. Do you think our Public Officials have done enough at home and what about the subways . Well i think that, particularly with the population thats homeless right now we should actually be using the empty hotel rooms that are throughout new york city. Melissa yeah. We dont have any tourists here. So i actually have a piece of legislation, a bill that would require the city to do that. Were hearing the bill this thursday, in a virtual hearing, hopefully pass that soon because people that are in, either unsheltered or in a congregate shelter, that means a lot of people per room, that is a highrisk environment. We should be utilizing those hotel rooms. The fact of the matter fema reimburses melissa 100 . Yep. So there is a strong melissa this is plan we heard before. This is a plan we heard before. Couldnt the mayor have done that by now . I mean we should be doing it right now. Melissa money allocated to this . Yeah. Melissa why isnt it happened . Im, that is the question well be asking at the hearing on thursday. And so i have a piece of legislation, cosponsored by speaker cory johnson son to do just that. There is about 30,000 individuals either in congregate shelter or unsheltered on the street that really ought to be in a hotel room. That is for the safety of everybody. And because fema reimburses it, there is really not a huge cost associated with that. I think it is 75 . It is a high amount. On the fema side. Melissa so, what do you think, as were looking at the white house right now, the governor is there asking the president for money obviously, what do you think he should be asking for and do you think he is doing enough, our governor . Well we do need the federal help on the supply chain for, for testing, that pcr testing, the tests for active infection where you have pieces of the supply chain that are not really there. We are going to need a significant revenue replacement here in new york city. Were looking at, our independent Budget Office said that were looking at over 7 or 8 billion between this fiscal year which ends in june and next fiscal year, fiscal 21. That is the amount of revenue that were going to lose in new york city. That is approaching 10 of our budget. We have, ive been in the council for, this will be my 11th budget. We never seen anything even close to anything like this, not in the financial crisis. Not in 90s, i think last time melissa can i say yeah. Melissa storefronts were empty. Before the virus came along, you guys had dug a giant hole. The storefronts were empty and people are fleeing the city because of the tax burden. So there was already a giant budget gap before this happened. My concern is that you see lawmakers like de blasio trying to blame the virus for a problem that was already here, was already created. I mean we fought at the council to have more money set aside in rainy day fund. That is something we pushed for every year. I give your speaker cory johnson son making that priority every year, setting aside these reserves for just this type of situation but one thing i just want to do want to get to here what i would like to see the governor and the mayor focus on in addition to the testing are the other pillars of a containment strategy because as we are now approaching a reduction in the number of cases, we will continue to do that, that reduction will continue to come for the next six weeks or so, as were looking to reopen new york city, this is absolutely essential, we have to be able to have a containment strategy. Testing is just one part of that containment strategy. Test something a tactic in the overall strategy. The overall strategy has to include Contact Tracing. We need to hire up thousands of people in our Health Department to be able to do Contact Tracing. We have to team up with google and apple. They have a new operating system coordination that theyre working on to make sure that smart phones are talking to one another, androids talking to iphones so we do Contact Tracing through Bluetooth Technology melissa before we run out of time, cant you guys do that, cant you guys do that in the local post . Isnt that one much your jobs to do it is essential, it is essential that we do that on a local level. Thats what im saying. There are things that the feds can do for us. The f