On his tweets. A feel good story i cannot wait to talk about. The ceo who is putting veterans back to work. All that and so much more on making money. Charles stocks in the green. Investors digest positive earnings reports. Economic data continues to be positive. You know this week weve been focusing on a couple themes, right . Investment rotation, major breakouts how i think wall street is pricing stock market were learning to live and prosper while coexisting with the virus. Where do we go from here . We want to bring in phil blancato. Your assessment with were seeing in this market. I think we have rotation going on. Cyclical stocks, value names but the break out has been impressive. It has. Were only down 4. 25 on the year. Incredible to see how far weve come. Youre seeing most undervalued names, those left behind bounce back, particularly the banks. Theyre having a difficult year. Im less excited about materials and industrials but that is it an area of the market that is showing strength because they were still cheap compared to Everything Else that has rallied. Charles now here is the question. Yesterday we saw technology sell off huge, right . Made an amazing, astonishing rebound. Sold off early this morning. It is coming back. If we talk about rotation, how much of a role can tech lay there, not necessarily go down but tech can be neutral or rest of the market rise or does tech always have to be part of the locomotive . Initially the breadth of the market was narrow, how many stocks succeeded with handful of names. We saw the breadth widen out. 50 of the names in the s p 500 began to lift off. Thats a big deal. So youre right. A rotation was going on. Make money on value side, under loved names like banks, industrials to a degree. More cyclical names will do well to a degree because they are cheaper. But dont forget were in a secular shift what leads markets going forward. We still need tech to do well but diversification matters. You can be on the value side for a while but dont leave tech behind just yet. Charles phil, i love having conversations with you. Your timing over the last six months, a year, has really been impeccable. You made money. You decided when to pause, not to pause. Im curious about two things, a, what youre buying right now, also any kind of regrets or lessons you learned in the last three months because i think we have rewritten the book on investing how quickly the market dropped and how fast it is come bag being . One lesson i learned clearly, i made my whole career based on using squirrely data really matters to me. Guess what . Data is irrelevant. I spent the last few months trying to become a much of a scientist as i can. We think about optimism, the impact of things beyond data that can affect markets in a way we never seen before. Ie the Federal Reserve and medical community. That is one thing that changed my narrative. That will be it for a while. Secondly the regret i have, while i backed out of small caps, international emerging, i dont own them, shifted to large, benefited from it, i dont have the, i look back, probably could have been a bit more aggressive when the narrative the medical Community Came to front. Right now im still conservative. Im still at neutral position. Im 52, 53 stocks in a balanced account. Im not yet willing to go there full on because earnings are just so unknown and the market is not inexpensive but you could have been more aggressive here as the medical community does some things we never seen before. Charles sure. I do me a favor. I need need to come back. President trump taking on social Media Companies signing an executive order removing liability protections. Cheryl casone joins me now with more details. Cheryl. Reporter thats right, charles. President trump is expected to sign an executive order today, more likely this evening on social media. It reportedly will seek to limit broad Legal Protection the Companies Currently have, making it easy for federal regulates to hold Companies Like twitter and facebook liable for suspending accounts or factchecking posts like they did with president trump. Twitter flag flagged this referencing mailin voting but the president claimed is highly fraudulent. Look what he wrote. Governor of california is sending ballots to millions of people and anyone living in the state, he goes on and on. Putting a warning on tweets they showed you, can cautioning readers there is no evidence that mailin voting would increase fraud risk. Another social media giant, Facebook Ceo Mark Zuckerberg responded to the on going controversy in an interview with fox newss dana perino. I just believe strongly that facebook shouldnt be the arbiter of truth for everything that people say online. I think in general private companies probably shouldnt be, especially these Platform Companies shouldnt be in the position of doing that. Reporter late last night jack dorsey responded on twitter about the issue of factchecking on his platform saying he is ultimately accountable for the platforms content. Twitter will point out disputed information. Republicans are working on legislation that would strip twitter of liability protections. Mat gaetz is working on legislation that would strip twitter from federal protections for liability. Reportedly from our team in washington, charles, possibly this evening, well see this executive order. The draft is still being worked on at this hour. Back to you. Charles cheryl, thank you very. Everyone is on pins and needles. Well bring in the legal ramifications of this. National Republican Lawyers Association member harmeet dhillon. A lot of debate what the president can do, what might be inside of this executive order and of course the future role of social Media Companies. What are your thoughts here . Well this is a very important issue and conservatives and others, free speech activists have been waiting for a couple of years. There has been a lot of talk doing is being about the abuses of over application of Communications Decency act section 230 which is the law under discussion here which basically immunized platforms like aol back in the day. Remember dialup internet from content that was transmitted by users but now that has turned into courts refusing to hold the companies liable when they commit torts or privacy violations or suits and sued twitter breaching its own contract what they will use to bounce people off the platform. The court said because of the immunization, you cant sue them for breaching their own contract. That is going too far. That is what the president wants to address. Where theyre publishing their own commentary which they have a right to do. Putting it on top of his, sort of interfering with his use of the platform which is in their terms of service, that is where it gets very hairy and needs to be adjusted. Charles harmeet, i read, obviously bipartisan went in, section 230. Ron wyden, republican, chris cox, democrat, essentially they said they put it in so websites could moderate their sites without having to worry about legal liabilities and then the Electronic Frontier foundation says is the most important law protecting internet speech. So do you worry the removal of that could harm, you know, essentially free speech on the internet . Well it is a great question and im a First Amendment activist and lawyer. So i definitely want to see a robust First Amendment space everywhere. I want to see robust free speech online but, i dont want to see these Companies Act as Campaign Donors effectively by limiting or censoring speech in a way that benefits one candidate over another. I dont want to see them interfering with peoples speech and commercial businesses. They have to do the same Business Practices as others. The president is not trying to strip that law. He cant. Congresses that to do that. What he can do with the law not clear, a lot of areas of it, ask federal agencies to craft rules and craft guidance that will help us clarify the scope. One day hopefully congress can clarify it, you only get these protections if you are willing to abide by certain neutral norms which they are not doing right now although i do Mark Zuckerbergs comments were certainly much better. Charles right. Yeah, Mark Zuckerberg were not arbiters of truth. I think he hit it spot on. Listen, jack dorsey has been under tremendous. Of pressure from his liberal friend. Wasnt a coincidence in my mind, kara swisher wrote an article he take this action and he took this action. Exactly right. Charles well see what the play will be from president trump. Harmeet, always appreciate your legal brilliance. Well see you again real soon. How are you markets handling this. I want to bring in phil blancato. Texs are uneasy with this, not just social media or silicone valley. Does this open a can of worms . You talk about the Technology Leading this rally . Facebook, twitter, they all make money on advertising. We have to be a real shift in public usage of those sites to really draw down the revenue, see how well facebook held up in all of this. So i think impact of its importance, remember as i said before, it is no longer just about data managing market, headlines, get headlines from twitter, places like that. They are relevant. They matter. They have to be made open to everyone. At same token im not ready to say they will get crushed on revenues. Theyre still making lot of money. They are still immensely popular, and part of that secular shift in our society. Charles right. Face bock monetizing instagram today facebook, is good news for them. Phil, always great talking to you. Appreciate your insights on these markets. Folks, the dow is up 150 points. Here is the thing, the market showing resolve. Several states also showing theirs, looking into phase two reopening. Is this why paul krugman is pretty upbeat about the economy . Thats right, paul krugman upbeat about the trump economy. His comments later in the hour. But first, despite protests and strong warnings from the white house, china approving its National Security law for hong kong. Arkansas congressman rick crawford, he will weigh in on that and what is next for our cold war with beijing. Meet jim. For jim, comfort is king. Which is why when it comes to his dentures only new poligrip cushion and comfort will do. The first and only formula with adaptagrip cushioning technology. Choose new poligrip cushion and comfort. Charles despite global outcry, threats from president trump, chinese lawmakers approved a resolution to impose National Security laws from hong kong. This is talking about partial autonomy. The members the house, sending we go uyghurs for the house to sign. This is part and parcel after larger cold war that is insense filing. Oh i think that is absolutely right. I think it was the right thing for to us do to send a strong message about the uyghur population in china. If you want to ask what is happen in china, dont ask chinese but their neighbors. Ask the nations along the border. How theyre treating ethnic minorities or political dizzy cents, religious dissenters, any number of groups they target for reeducation forced labor, all those kind of things and the uyghurs are certainly known for suffering at the hands of the Chinese Communist party. Charles the vote was 4131. Thomascy, get him back on the show find out what he was thinking about. That was lowhanging fruit. Religious persecution we highlight as a nation. When china wants to stop division, treason, what do we do without escalating to this the point that some are concerned that china retaliates not allowing jpmorgan to bank there, hurting apples business or not buying boeing airplanes or do we challenge them and call their bluff . I think we have to challenge them. What weve seen what the coronavirus has really kind of laid bare theyre willingness to not only to abuse their own people but to allow that to take place beyond their borders. They used propaganda to try to tamp down the fact what is was taking place with regard to the coronavirus and humantohuman contact, they found a willing accomplice in the w. H. O. The Global Community is now starting to ask these questions. In fact australia is challenging, asking for an investigation. Their response is to go after australia with tariffs on a variety of Agricultural Products to hurt them. So theyre trying to flex their muscle in the Global Community. I think the Global Community has got to recognize this for what it is. We really need to wake up and smell the coffee with regard to chinas, you know, global intentions here as their stated goal is to become an economic superpower, the supplanting the u. S. Economy. Charles right. Listen, if that is their goal for me, thats fine, but they shouldnt be able to do it by stealing our trade secrets and having lopsided trade agreements. I love it that you brought up australia. They have so much to lose, their economy is so intricately connected to china. For them to take a stand. Then over 100 countries join them, thats a coalition right there. For folks saying were doing these things unilaterallily, the world to your point is speaking out. The chief executive hong kong, carrie lam she made a statement, said rights and freedoms are not absolute. That is something we all should consider and ponder for a moment. That some world leader can say that to its citizens . Yeah i agree with that and thats the kind of thing we need to be united globally to address. So i think that it encouraging countries are united around australia. Theyre willing to challenge. That is important as you point out. What we hear from folks in places like australia, new zealand, other countries in the pacific rim, absence of u. S. Leadership is making a measurable leadership in chinas ability to project power in that region and beyond and it is important that we get behind australia because, were going to need them to get behind us. We cant do this by ourselves. Charles sure. There are things we should do at home to push back against aggressive chinese behavior, but globally, we really need this coalition that is forming to say, hey, were going to hold you to account, china. Were not going to allow you to run roughshod without question. One of the first things we should do is take away their status as a developing nation to be in the wto. This has gone on long enough. They are no longer a developing nation. Charles yeah. No, its crazy how they manipulated that whole scenario. Congressman crawford, thank you very much. Yes, sir, thank you. Charles so, folks here is a question for you. Are the globalists finally losing their grip, and is it time for them to make concessions . Plus a lot of people see a strong rebound in the economy, including some that hate to say as much. I have one of the best ways, one of the best economists to walk us through the opportunities and challenges that face our economy for the rest of the year. Dont give up i know you can see all the world and the mess that were making cant give up and hope god will intercede come on back imagine that we could get it together charles is this a say what moment any think it is. One the of the worlds most wellknown pessimist, depend who is in office, economist paul krugman is saying he is upbeat about the economy. In fact he told bloomberg, my take the covid slump was not caused by imbalances that would take years to correct. That would suggest a fast recovery. I dont see a case for a multiyear depression. He is not alone of course. Earlier in the week Jpmorgan Ceo Jamie Dimon said you could see a fairly rapid recovery. Youre seeing positive effect the of opening up taking place for parts of the economy. I want to bring in the nabe president , constance hunter, one of my favorite economists. Constance, your feel, modeling or attempts to model. Lets say two months ago what weve actually seen, are you surprised . You know, not really. We were expecting parts of the economy to come back and were seeing it for example, the open table data which shows restaurant attendance, so naples, florida has the best outcome. It has come down from down 100 to down 32 . While that is a huge recovery, and were seeing green shoots all around, that is still not, even 98 down, right . With a restaurant operating at 30 down, it is still a restaurant that is under stress and struggling. So were moving in the right direction. Were seeing turn arounds in lots of data. And red books, samestore sales. Were turning back up in the sense that were declining at a slower pace and were seeing this all over the economy in the areas we opened up. That is amazing news. I think well have a bit of a twopiece recovery. So larger firms that have better access to capital are really able to take advantage of the low rates that we have in place but these Smaller Companies that have limited cash flow, limited access to capital, it is going to be a longer haul. Charles you know, you mentioned naples, florida. That is a state been pretty proactive with respect to opening. If you look, new york, chicago, los angeles, open table data may 1st, down 100 . Today, down 100 . So it helps if you open the economy to allow businesses to try to operate obviously with extra safety precautions. Again, listen on monday, tuesday, japan, they talked about the japanese victory, right . They didnt have official lock downs. That they learned to live with the virus. Theyre wearing masks. Can you see an economy in america where we have made the adjustments and get something more robust going than weve got now . Oh, absolutely. One of the things that japan did really well was having a testing and tracing system in place. Now their tracing system is very analog but they had that in place and was doing it. You saw declines [inaudible] dont kid yourself, subway ridership was down 80 in april. Now it has come back but still down. Even though it didnt officially close people took precautions. Mask wearing, is part of their culture. We do see data shows it really helps stop transmission to really below 2 level. That is really, really valuable. Youre right if we engage in right behavior