Coverage. Blake burman with the latest from the white house, Lauren Simonetti is watching the markets and Edward Lawrence is in washington. Lets kick it off with edward. Reporter exactly. Chairman Jerome Powell, Federal Reserve keeping Interest Rates where they are foreseeable future. Federal reserve chairman Jerome Powell said the coronavirus had Significant Impact on Economic Activity, employment and inflation, further lowering expectations. The Federal Reserve chairman believes well see doubledigit unemployment when the next Unemployment Rate comes out. He backed off saying there would be a robust Third Quarter going farther, saying some uncertainty around when the crone cron treatment will be available is when in fact the economy will start to pick up again. But he would not say if the announcement after treatment or a vaccine changes anything that the fed is doing. Also Federal Reserve open Market Committee statement saying that the fed will keep rates where they are until they are confident the economy has weathered recent events. The Federal Reserve chairman saying a main Street Lending facility designed to help Small Businesses but also medium businesses too. The companies will be up and running, it will be up and running soon. Federal reserve chairman say it will thereby to help them. The treasury secretary told me it could be expanded actually, and the Treasury Department would backstop more money for the main Street Lending facility to help those businesses if the Federal Reserve decides to expand it. Finally the Federal Reserve chairman tells me there will be more need for monetary and fiscal stimulus Going Forward. He pointed to programs like keeping workers on the payroll, as the ppp, payroll protection program, main Street Lending facility, those programs might need to be expanded or added on to Going Forward to have a robust rebound. Back to you. Melissa edward, thank you for all of that. Lauren simonetti has Market Reaction to the fed and other big headlines of the day. Lauren . Lauren melissa, stocks maintained their rally and finished firmly in positive territory. You can see the dow gaining 532 points. The high was 663. It was a phenomenal day. Nasdaq was the best performer, up 3 1 2 . We saw drug trials, Gilead Sciences remdesivir, not a vaccine, just a treatment, it had promising results helping patients recover faster. Now, melissa the fda is talking to the drugmaker making it available asap. It would make people feel more comfortable going out in public as the economy starts to reopen, following a contraction in the first three months of the year. But the white house Economic Advisor larry kudlow is looking for a second half bounce back of between 17 to 20 . Take a look here melissa lauren, so sorry to do this i have to jump in and send it over to connell. He has microsoft earnings. Sorry for that. Connell, go ahead. Connell we are sorry, lauren. Fox business alert on mike is, better than expected, 1. 40 a share in the most recent quarter. Street only looking for 1. 26. We made a lot this week it is tough in this environment, whether you should look at comps what they mean this is good news for microsoft, 35 billion in revenue even in this environment. 33. 66 was the estimate for last quarter. I was looking through some business components on the revenue side. Cloud business, intelligent cloud. 12. 28 billion in revenue there, that too topped expectations. A lot of people look at the Cloud Business. One of the things, we knew that microsoft was disrupted certainly like every company by coronavirus by just about every company, saying there were supply disruptions in china, weakened shipments much pc and some surface products. They came out said that before all of this, they pulled their original guidance, again before all of this. The numbers were seeing right now, seemed to be pretty strong for microsoft. The company saying that covid19 had, and im quoting now from the release, a minimal impact on the the on Third Quarter total company revenue. We havent heard that from Many Companies but heard it from microsoft. There you go, melissa. Microsoft better than expected figure, up 2 . Melissa wow, connell. Jonathan hoenig from capitalist pig hedge fund, a fox news contributor. We have jack hough, barrons streetwise podcast host. Thank you both for being here. What do you make of that . It sounds quick good. It was always going to be a mixed picture for microsoft. There will be companies out there pulling back on spending but long term, right, microsoft has bet it all on the cloud and of course with everyone working from home, this is going to accelerate the shift of applications to the cloud. So it sets up nicely for microsoft. I think with this number kind of shows in the near term, it is seeing plenty of positives to keep the negatives in check. Melissa yeah. Jonathan, i think that is the most surprising part. We all realize were more equipped than we ever been before obviously from a Technology View to work from home. There will be people that will never go back to the office as a result of this, and work very production activitily, that is for sure microsofts benefit key to the infrastructure. For them toe same it didnt even have a huge impact on the quarter just ended, that in of itself is pretty surprising. What is your thoughts . You see the stock react high as 180 in aftermarket. Microsoft benefiting coming into this number the stock was up 30 year to it today. As jack is alluding the company is benefiting it is diversified unlike facebook well here in little while. Microsoft has personal computing, the search, Cloud Business which jack mentioned is growing like gang busters. Melissa, has collaboration software, the teams effort. Put it all together, along with four other big tech stocks, they comprise 40 of the entire market right now. Apple, facebook, microsoft, as these names go, so goes the rest of the market. Betterthanexpected earnings is moving the stock higher afterhours. Melissa jack what does it tell you how much room there is in these industries . Because you know there was that race to the cloud, amazon was up there so early on and you know a lot of fight over this territory but turns out, i mean like the memory in your computer, cant possibly ever be enough because we kind of absorb all of it and there is so much demand . I just had a phone call with the chief of, ill call it a midsized Cloud Company and we talked about, what is the longterm vision of the company, how big can you get . What he is saying is, look the shift to the cloud, it has been going on for a long time. It has been going fon or a decade but dont let that fool you. We only just begun. He was talking about melissa just begun. Sorry to interrupt you. Go ahead. Melissa on top pick we have the facebook earnings as well. Lets go to connell for that. Connell yeah, the revenue figure, melissa, looks better than expected. Earnings might be a little light, 1. 71 a share. The street was looking for more than that. Assuming that the figure is comparable, we think it is that is a little bit light but the earning, sales i should say of 17. 74 billion. That is better than wall street was expecting and in afterhours trading facebook already up almost 12 bucks. That is 6 gain in afterhours for the stock. It said in the commentary it is not providing guidance. Monthly active user numbers are strong here. 2. 6 billion for facebook. The estimate was a little under, or a little over 2 1 2 billion. It stopped expectations on monthly active users. The company said back in late march, that it, it had a surge in usage with people being disconnected and on their computers so much using facebook more. The questions on the company is revenue side, particularly advertising revenue. But overall sales, well get back to you, as we dig numbers a little bit more, overall sales, melissa are better than expected. Look at that, the stock up 7 . Very good. Melissa thank you, jonathan. Everybody is watching more television, streaming more movies, on their computers, on their phones, on facebook, all the things more. The thing we really dont know is, a lot of Companies Said oh, the advertises are fleeing. They dont have any money because they dont have any customers but those of us who go on anything who watch television are bombarded with ads. Im always sort of like, how can you say the advertisers have fled if im still watching ads all over the place . Is there advertising has suffered, doesnt seem to be slowing facebook down one bit, melissa. Facebook is a little more difficult than microsoft. Less diversified. It has a advertising model and because of the more difficult economy it is having to spend more to maintain those advertisers. So were going to keep a close eye on their margins. Also as connell alluded to, the subscriber growth here, they have what, 2. 5 billion users at facebook. It is imperative that they keep growing the number worldwide, not to mention here in the states. Once agains the fact that these big cap tech stocks continue to move up in afterhours here, theyre the major part of the market right now. Facebook itself is 5 of the nasdaq 100. These are names that are moving market. Typically after hours. Melissa amazing. Jack, whats your take . Well advertising is one of the easiest levers for companies to pull when they have to save money so we know Global Advertising will take a hit now but if youre a facebook investor, right, who cares . I dont want to make too light of it, but you know advertising is going to come back at some point. You also know that facebook is not going to face a cash crunch. If anything it has the ability to continue to gain market share, even though that advertising pie might shrink, facebook can continue to gain market share within that pie and wait out the day when the pie comes back. I think the outlook for facebook, like google, being dependent on advertising it does have more vulnerability in the near term than these other tech giants but i think it is certainly a company that can weather the storm nicely. Melissa you made me want pie. Guys, thank you. Connell . Connell i think we all do. Let me just add two or three points on facebook before we move on here, just looking through the release while you guys were talking. I mentioned earlier, no guidance, Second Quarter, full year but they did say a few interesting things about the future, saying number one theyre facing a period of unprecedented uncertainty in their business outlook. That is how facebook worded it. And they say significant reduction in the demand for tieing moving forward. The other thing that facebook said, they expect to lose at least some of the engagement that they have seen. They have seen so much more engagement with everybody stuck in their homes. They expect to lose at least some of that when the economy opens up more broadly and some shelter in place restrictions are taken away. Overall, strong number from facebook. Stock up 7 afterhours. Well keep covering it. Meantime as our coverage of the pandemic continues were nearly 3. 2 million cases worldwide. More than a million in the u. S. Some states talking about plans to reopen. Well talk about that, including new jersey. One of the areas along with new york that was hit so hard. Health care professionals racing for a vaccine. A lot of news today, well have the latest on it after a quick break. The president set to meet with Industry Leaders this hour at the white house. Industries across the country fighting to stay afloat. Well talk to a company from texas set to reopen for business as the week rolls on. I believe on friday. So stick around. And more coming up. This is an athlete, twenty reps deep, sprinting past every leak in our softest, smoothest fabric. Shes confident, protected, her strength respected. Depend. The only thing stronger than us, is you. Why accept it frompt an incompyour allergy pills . E else. Shes confident, protected, her strength respected. Flonase sensimist. Nothing stronger. Nothing gentler. Nothing lasts longer. Flonase sensimist. 24 hour nondrowsy allergy relief me too. Me too. And if youre a small business, were with you. Standing by you every step of the way. Bye bye. Melissa fox business alert, President Trump expected to meet with industry executives any moment now. Blake burman is in washington with the latest. Blake . Reporter hi, there, melissa. We expect to see President Trump on camera here momentarily at some point later this hour as he will be sitting down in the state dining room alongside leaders of wynn resorts, hilton, waffle house, and toyota. This comes on a day we learned exactly how big the economy contracted in the First Quarter of this year. The president today though is trying to look past that. Instead he is looking at the back end of this year and toward the beginning of next year. And i can guarranty you as more people, more companies, more investigators get involved it will get better and better. I will stop there, be happy to answer any questions. Why dont you go first and then you go. Reporter timeline of development of i think next year, all of the fruits of what weve all done together between the doctors and the business people, but all of the work from the task force, all of the people that have worked so hard, were going to have a tremendous year next year and you are going to start to see that i think in the fourth quarter. Maybe even in pieces of the Third Quarter. Reporter all right. So you saw the president s comments there in the oval office from earlier today on the back end talking about you who he is looking towards q3, q4, even beginning parts of next year. In the beginning you heard from dr. Anthony fauci. The market popped on a promising trial conducted by gilead. As you probably heard from fauci there, he said the effects of remdesivir on covid19 patients being treated in hospitals is quote, unquote, highly significant. He says it is a very important proof of concept that show as drug can block the virus. Melissa, connell, fauci did stress earlier today what is looked at right now by gilead and what the National Institutes of health commented on this afternoon, is not a vaccine but rather than a trial but something they believe is a Building BlockGoing Forward that other companies can potentially latch on to, and work time prove upon down the line. It sort of reminded him of the very first efforts 34 years ago trying to tackle hiv and aids a promising day as it relates to gilead. The market popped off that. That brought Anthony Fauci into the oval office earlier today. Back to you. Melissa it is tremendous when he was talking about it. It is a therapeutic help them quicker not get to a sick place where they end up in the hospital and end up on respirators. He said is created a new standard of care, the benchmark which we judge things against. It was worth raising the red flag. It was worth bringing to us. Thank you, connell. Connell a lot of news this hour, melissa, the most recent fox business alert came from tesla. That is the other result were waiting for. Its First Quarter results are out. Lauren simonetti joins us with those numbers which are sometimes complicated for tesla but what do we see this quarter . Surprise profit, adjusted 1. 24 a share. Revenue just shy of six billion, 5. 99 in the quarter. Take a look at investor reaction to all this. The stock at 831. That is up almost 4 in the premarket. The company said the First Quarter was very good for them despite global operational challenges. They were able to achieve our best First Quarter for both production and deliveries, the model y, the crossover suv, it contributed profits, get this, the first time in our history that a new product has been profitable in its furs First Quarter. Well continue to look through the report for cash burn. Any change in deliveries they expect from the coronavirus shutdowns. They previously said half a million cars to be delivered. We have to see if they tweak that. Right now investors are liking what they see. 1. 24 on the bottom line. 5. 99 billion on the top. Back to you guys. Connell on relative basis at least were thee for three on earnings all kind of tech related in shape or form. Yeah. Connell good point. Calling for transparency secretary of state mike pompeo demand being access to the wuhan labs at the outbreak. One Research Platform is seeing a surge in sales as millions of americans are staying home. Well talk to the company as ceo later this hour. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Melissa secretary of state mike pompeo slamming china troubling down on u. S. Concerns over chinese labs. Take a listen. I can tell you there are, were real concerns about the labs inside of china. I have to say im still concerned that the Chinese Communist party is not telling us what is taking place in all of the labs across china today. Melissa here is now retired fourstar general jack keane, fox news senior