Cut this month thanks. We are seeing a big bounce back. All angles are covered for you bob pisani, Rick Santelli in chicago seeing new lows on the ten year yield, meg has the latest on the coronavirus and Steve Liesman on whether the fed will come to the markets rescue here we begin with stocks and bob with the latest here kelly, were just off the highs. The question is, why theres two essential reasons. Number one, we have extreme oversold conditions. Well explain that in a minute and number two, we have hope for fiscal stimulus and coordinated monetary stimulus and theres indications those are coming together as well there you got your rally take a look when we say extreme oversold conditions. It shows you mouch much the market momentum is moouing below 30, thats oversold. You very rarely see this its screaming buy in a traditional way to look at the markets. Another extreme indicator, you have nyse, the volatility index. We were at 49. Thats almost four standard deviations away. We never sold those well in history, so when you get up here in a short period of time, the market will move down again. Thats almost 40 of the new york stock exchange. You dont see that often another screaming indication of at least a market bottom temporarily then we have enormous outflows in the last several tas and a lot of spreads here all of this says indications you should buy at this point and heres the problem here. Ooempb while these indicators clash a buy, yes, new lows, extreme vix readings, traders at a deer in the headlight look throughout the weekend how do we know this is accurate . It worked in the past baugh bu maybe this is a black swan event like 2008 and were all going to see the market decline and get our head handed to us if we buy. Today, these ideas are indeed working and a lot of people are breathing a sigh of relief good stuff. A lot going on well as that is happening, also ea earlier today, we had a new low for the ten year yield Rick Santelli is at the cme. I guess the question is with all this bond buying, is it people just shortterm parking their cash because they dont know what else to do to do or is this a weird optimism about government bonds i think its a little nervousness so theyre parking their cash an i think theyre park iing it right next to many others also parked inside the treasurys sovereign complex all are big parking lots ours just happens to be one with positive yields. If you look across the curve, were down ten and twos. Seven and tens, four and 30s why to i wring that up because theres no way were closing these in positive territory. Which means eight seg record and each one is historic look at the two day of twos. October 1st, dollar yen. Look how much its suffered against the yen. Its lost in the last seven session, two and a half cents. Finally year to date of the euro versus the kdollar, same thing wheres is that selling gone well some in the yen a lot in the euro. Kelly, back to you rick, thank you very much the World Health Organization not yet calling the coronavirus outbreak a pandemic. Pointing out that 90 of cases are in china mostly in province, but the spread is growing and meg has more pr the us the w. H. O. Noting today that as cases in china are declining, theyre still rising in the rest of the world new cases today were almost nine times higher than those in china. Of particular concern, cory ree e area, italy, iran and japan. In the u. S. , numbers are rising as state and local labs get the ability to run their own tests new cases of Community Transmission in california and Washington State where officials are b tracking an outbreak at a nurse iing facility where a patt has died and more than 50 residents and workers have symptoms and in just an hour, well see pharmaceutical executives head to the white house for a meeting on vaccine and drug dromts. Regener regeneron, gileagilead, pfizer d johnson johnson. We got an update on region rons timeline it aims to have hundreds of thousands of doses for human testing in late summer that was at the Research Conference in boston treatment or vaccine . Treatment, but it could be used for prevention. Its an antibody based approach. We need both. We do youve got to remember the story. We want the treatment for the people infected now. We want the vaccine, what did somebody say the other day, we dont need a rate cut, we need a vaccine. They have longer timelines right now. A year. A year until we get into trials sorry, until we get a vaccine that could be deployed more broadly, but treatments could be earlier. Theyve got to make it, scale it and distribute it thats right. Still, thats been one of the better stocks in this. Also related to novartis. Appreciate it thanks the overall markets and the president and some of his staff want the Federal Reserve to come to the rescue. In fact, some out there seem to be counting on it. Steve liesman now with more on that it could be a big part of this rally expectations for an aggressive interventi intervention faster for the new case count for the coronavirus. Multiple fed rate cuts seem to be priced in here. A lot of talk about the possible emergency cut. One before the march meeting on the 18th speculation by jpmorgan and others that you may see a zero Fund Funds Rate but recession for most economists not the pace case these expectations are showing up in dramatic shifts. Folks, these are moving all the time 15 minutes old i garruarantee you its moved sc then, but right now looking at this, zero chance of a 25 basis point cut, a 25 chance of o a 50 and 75 chance of a 75 basis point cut. Kelly, youre shaking your head. Well get to that in a second, but the fed funds is seen plunge ing if you look at the trajectory for what wr the market is putting the funds. 1. 6 now on the fed funds 09 after march or take away a full percentage point is the expectation by july. In a joint statement, the imf and world bank pledging this morning to help member nations that provide financing as needed the governor of the bank of japan issuing an extraordinary statement saying theyre pledging to provide ample funds then reports that tomorrow that the finance ministers will hold a con b frens call that looks likely to include central bank officials. Theres a lot going on i think i said this in the last hour, the cavalry is mounting the steeds here finally. Maybe they should have been done last week but what needed to be done now it looks like the pure ro bureaucracies and agencies are getting moving but is that steed secretariat or a 30yearold man is there any juice left in that central bank tank . I think there is. And i think if i could follow the metaphor and need a couple of collides da pledging on thn monetary side as needed, i think these are among the things that got the markets attention today. I think these are among the things that look, you cannot undo it all, but you can have programs in place that try to ease the pain that will happen peoples real lives from the economic fall. Steve, stay right there lets bring in a senior fellow at brookings might have read his piece in the new york times. Called the coronavirus has put the worlds economy in survival mode its good to have you here steve just mentioned that maybe theres going to be a fiscal and Monetary Policy response what do you think is most likely tomorrow and in the weeks ahead . I think weve seen this before central bankers being expected to save the world. Certainly a combination of fiscal and Monetary Policy would calm nerves. It would mitigate the downside risk, thats going to give a significant boost to growth that is going to be enough to off set this negative shock. Thats a little harder to see. The problem is that even if there is significant stimulus coming from both Central Banks and fiscal policy, its not obvious that businesses or consumers are going to go out and spend that money, but this will put a bottom on how bad things could get and thats really important at this stage the major debate is whether monitoetary policy is the right tool there are those who say what the economy needs is the neutral fate has fallen so therefore the fed has to respond and doesnt really matter what the cause is. What would you say to those those folks and about the idea that look, maybe there could be something on the fiscal side that could help improve the economys prospects better its definitely going to have on Financial Markets and weve seen some of that today. Fiscal policy is going to be much more effective. If it can be targeted, many Small Businesses are hurting theyre going to have cash flow problems consume r rs are going to be hurting. If we can get money into the hands of these consumers, if we can get it into the hand of Small Businesses, thats going to hurt. But is it really going to make up for a demand efficient sni not quite, but having monetary and fiscal policy Work Together and having a coordinated response acrosscountries, that is going to help in terms of mitigating the damage and that is really important at this stage where hinges could spry rall out of control if we dont see some action. Right now, the markets are spiralling up. The dow is up 805 point, but Steve Liesman, i want to great that great poet warrior, Steve Liesman. You said something last friday k is a rate cut going to make you feel safe going to a rock concert or getting on a plane . No, it will not i think hes undually pessimistic in that if your goal is that the stimulus should undo all of the damage, then i think your goal is set wrong and if thats the goal, then certainly the stimulus will under perform. Say theres stimulus in place that keeps businesses that are good businesses. That otherwise would not go out of business. From being called their notes n and loans. Say you have loans or stimulus out there that would keep other spirals from happening in that case, no, it doesnt undo it all. Doesnt cause people not to go to rock concerts or get on planes what about certain ones in the travel business if theres six months of a decline, some could go under and theres a legitimate question as to whether or not theres a role for government to come in and say you know what, lets put a floor under that lets stop that pain from happening that shouldnt happen. We have to deal with this with perhaps dramatic declines in supply in demand in certain businesses. Well let the government do two things put a floor under the damage, but another side to the trade because thats when markets get into trouble can you address whether the hong kong approach would work . Best or better here with the idea of you know, basically giving citizens about a thousand dollars in cash . Maybe 2500 off their income taxes, breaks in their electric bills . You said something telling a minute ago which is that Monetary Policy is easier than fisc fiscal i wonder if thats why we keep come back to a central back solution even though as goldman and others and steve have said it might not be the most effective . I think to steves point, the key question is how best to limit damage at the stage. Certainly the big supply options, maintaining peoples confidence, certainly Small Businesses that are going to fall if they dont have cash flow that consumers are going to be in very precarious circumstances if they dont have money in their pockets, so even if theyre going to stash away some of the money, i think seeing governments act in concern using all the elements and policy tools at their disposal is really important at this stage it may not have a huge bang for their buck, but could prevent a much worse outcome and its really crucial at this stage Olivia Blanchard did a 180 and they found out that the multipliers to government assisteds and a time when the Global Economy is in crisis are much higher than we thought they were and i think thats an important lesson we thought it was less effective. We found out afterwards it was more effective more essential had more bang for the buck than we thought steve, thank you very much. Appreciate it as well all right, back to these markets. Shall we because wall street may be betting big on pork komg from the Central Banks. And stocks they are surging today. Dow is up 800 points and volumes across the market and etfs are sky high while lower today, dont b lose sillose sight of the fact that vix hitting its highest level in nearly a decade last week and still well above where it was a few weeks ago. Lets bring in jeff mills as well as burns. Jeff, are you the one driving markets higher i wish i was. I think whats driving the market higher is really technical snap back. The rubber band got pulled really far in one direction. Bob pisani was on earlier talking about it last week, 90 of stocks in the s p made one month lows four days in a row in the 90thed at levering tfs betting on the market going down, there were ridiculous yesterday, some 300 million shares purchased i think taken all that, the market was bound to snap back. The b problem is were still pricing in uncertainty its not even risk that can be calculated the spectrum of outcomes is to wide here that one trading day is not going to resolve all our ish issues all those people who bought the two and three times are getting them today burns, youre a longterm player you want to buy low and sell high or just keep buying low what are you buying today . Were looking at equities in two areas. Were at a point now where the markets can embrace risk you have three quarters of the s p 500 companies yield more than a tenyear treasure are ry. Theyre look at two ways also a barbell approach. The first bucket being look for names that if this does, if the Health Care Gets worse, theyre going to hold up better. Companies with high dividends, with stable earnings and more importantly than anything, companies with clean Balance Sheets to allow them to weather the storm. Names like the tell comes, the Defense Companies then on the other side of the coin, theres a will the of topnotch high quality Industry Leading Companies that are now on sale look for companies you might be able to get good values. What do you make of the level of rates here . If this slow period of low rates persist, does that x how do you ip ter interpret that a lot of us give supply and demand the supply of yielding alternatives is low. At the same tilme, demand is high looking for yield anywhere they can get it, which again, i would reiterate probably makes a strong case for companies that are pay iing dividends because s the treasury yield, thats a stable yield they have dividends that have a track record for growing faster than the rate of inflation. When will we know the all clear is sound something. Its hard to know looking at the progress of the virus and whether thats piqueded, once we see that, transportation probably be too late so i think for now, you have to start to look for areas of the market where most of the pain has been priced in. We have a monday morning call, we tack about the market with aour advisers i was flipping thu data this morning. If you look at the differential between growth and value stocks and the valuation despaisparitye the past six to eight week, typically growth trades three and a half times right now, thats almost eight and a half times almost three standard deviations for growth being expensive haves value. So i think you want to look for places wherein value where you can find places that reflect a negative scenario. Even in energy names like shah near its way above where the stocks currently trading now in the low 50s so there are pockets of value with individual names and just in the value style in general. All right, great discussion, guys on a big market day although a little different than weve seen in the big market days the last few days now this ones up as you can see, stocks are rebounding today in a big way. The dow is up about 800 points coming up at the top of the hour, the president , Vice President and entire Coronavirus Task force will meet with pharmaceutic pharmaceutical executives at the white house. Tomorrow, that attention will turn to the travel industry, hit harder than perhaps any other. The president will host ceos of the cruise lines and airlines. Squ phil has more on what we can expect from that group that needs some help. Zpl they do. Look, the airlines dont know and i cant speak for the cruise industry, but with the airline industry, youre look iing at a industry thats unsure what the demand is going to be not only over the next couple of weeks, the next month, but four or five months down the road so what youre seeing now are a number of things on the international front, there are select like the milan thats been p halted major corporations are suspe suspending nonessential travel im hearing from people who say i was supposed to go on a work trip, not going. American airlines, a good example is waiving change or cancellation fees for tickets bought between now and march 16th what about united . Theyre in this ramp up mode for pilots over the next several years. They dont know if theyll be able to use them now so theyre not going to be hiring this next class of pilots and take a look at southwest shares are moving higher now its ticked lore, but was positive shortly theyre saying domestic routes from southwest, it offers the airline a buffer nobody knows xwaktly what the demand picture will look like for the airlines say a couple of months down the road theyre family confident it will be b be, but theres some weakness sit tight, i believe we might come back to you breaking news now. An update on the number of cases in the United States news out of seattle they are reporting an additional three deaths there some new cases four cases there theyre saying are new. Two of those people have died they say in addition, one of their previously reported cases now has also died. That brings the total number of cases there to 14 including fives total. Which is the total death toll for the United States right now. Back over to you well, back to the airlines, which are under pressure here. We want to bring in a former airline ceo who managed through a big crisis and is former chairman and ceo of Continental Airlines and a cnbc contributor. Anyone who dealt with 9 11 has been through a really extremely tough period what should the airlines do . How should they get through this period finally they have to jump quickly to a loss of revenue. Thats what theyre trying to do with partially paid leave. Depends on how long this drags out. But they have a limited able thety, which means their Balance Sheet and cash is a management issue for them not just longterm profitability. And the airlines with higher debt loads have performed worse lately what do you do if youre deal lg with a high debt load and supply issues somehow udoh you address those concerns thats a tough thing. Depends on how your expenses are locked in. Whether its variable with the airports, the airplanes themselves and your labor. All those have remedies, but you try not to go to default rev needs to come in the door. Gordon, would you fly now. Surement went to North Carolina this weekend. Came back yesterday. Listen theres more people dying from the flu every year than this coronavirus. People we just heard about im sorry to say that lived in king county, but that was an assisted living home which people are fairly advanced age and theyre vul u neshl, bvul nernl. But i think Healthy People like yourself, you might get a case of the flu, but thats not the end of the world inlg this will be put in perspective as it grows, it mitigates. Listen, i hear you. And next week is spring break week for my kids and everybody we know is planning to go somewhere and i can tell you this much, of just the five or six families that we have texted with or talked to in the last 48 hours, all of them are rethinking their plans to go is that silly . Are they being overly cautious i think parents have to be cautious theyre the ones that need to make those tough decisions if youre going to florida for spring break, theres nothing wrong with florida nothing wrong with spring break and this county are tri, a 320 million have had five people who died on the west coast i dont think its really a threat to your children. Id go back to being normal and get on the plane tomorrow if i had to go to new york. Its not here, it may get here, but i dont know how bad its going to be. I guess one semiupside is that jet fuel price, about a buck 65 a gallon delta used about 9 billion a year in jet fuel costs thats each by the way do you think thats 17, 20, whatever percent drop in jet fuel costs, will off set some of their concerns not all, but some thats welcome news. Obviously jet fuel is a big percentage of the expense, but your main driver is fuel and people so thats a very big help to this. But i really believe its going to tone down by the time it gets to be pref lent in our country because it will be put into perspective that fs a disease, but its not fatal necessarily and it can be managed and our government being really open i think and giving us the information as it develops thanks for joining us today appreciate glad to do it, thanks so much speebi inoil is higher todayt still slammed on the year and the stocks hit even worse, but with opec set to meet this week, should you place any bets on big names in oil stocks . Were going to find out and a closer look at how stocks have tended to act when we have seen big moves like this in the past. First, as you go out, the retailers. Costco, target, walmart. All soaring today. Consumers rushing to the sretos perhaps to buy essentials. Were back on power lunch right after this wednesdays. At outback, theyre for steak and beer. Walkabout wednesdays are back get a sirloin or chicken on the barbie, fries, and a draft beer or cocacola all for just 10. 99. Hurry in wednesdays are for outback. Outback steakhouse. Aussie rules. With a nationleading 150 billion commitment to infrastructure, were creating state of the art, 21st century transportation hubs, constructing new bridges, bringing highspeed internet to every corner of the state, and committing to lowcost clean energy. With infrastructure built for the future, the companies of tomorrow can thrive here today. See your future at esd. Ny. Gov. Heres your cnbc news update at this hour the u. S. Supreme court will not hear a challenge to the federal ban on bump stocks that ban went into effect a year ago in response to the Las Vegas Mass Shooting where 58 people were killed by a shooter use in bump u stocks on his weapons employees returning to work at the milwaukee brewery where a worker fatally shot five colleagues before taking his own life they say they have added additional guards to the facility and is Offering Counseling service to employees. Brexit talks are underway. Uk Prime Minister johnson threatening to walk awayif theres no progress within four months and paramedics standing guard at polling stations in israel where residents who are under coronavirus quarantine are voting in todays elections. Israel has about 5500 people under home quarantine due to the outbreak thats the news this hour. Back to you. Thank you very much now lets get toefr seema for trading nayes. The financials, one of the sectors posting a sharp rebound today, but the group is still 4 14 off their resent highs and talk of o fed rate cut heating up lets bring in team. Whether Central Banks are the answer, lower rates arent necessarily a good thing for the banks. So what do you make f f those stocks now we were the underweight financials at this point in time we think margins are going to suffer in q2 and potentially q3. Also credit markets as well as Capital Markets we believe will be struggling over the course of the next 90 days so overall, we would be moving up a eququality spectrum and we would shift to a overweight, which would be consumer staples. What do you make of financials i know this is a segment on banks but opportunity in financials would be security changes, Data Services and private Equity Companies if you think you missed these stock, heres your opportunity all those stocks correcting into key support level. Interest rates are the wild card youve got to be b selective the one to own is jpmorgan thats the eququality stock. Really make that case, look at chart of jpmorgan versus the Financial Sector its been week of late but what is still a longer term trend of outperformance what could be a resumption of longterm performance. And both those stocks are up 1. 5 thank you for joining us and for more trading nation, head to our website, follow us on twitter at trading nation lets get a check of broad rer markets right now. The dow is up about 820 points a t the highs. Up 674 right now thats a 2. 6 gain and best performer today. S p is up to 3015. The russell only up about 1. 1 the oil market is closing for the day. Down to eric hey, brian. Thats right you can see all of this green right behind me. Crude prices getting a boost today. Wti and brent. Theyre each up more than 4 on the day. Todays gains were fueled in large part by the growing expectation that opec will announce further output cuts as it aims to cut any demand impact from ongoing coronavirus worries. Putin said over the weekend that russia would continue cop rating with cuts, but opecs large financial reserves dont quote eliminate the need for action. Weak fakih factory data by china was a drag on oil prices earliers in session. The coronavirus outbreak is reeking havoc with corporate ooechts. The opec meeting is still on in vienna and investors are hoping for a big cut from the group but what about the stocks . Theyve been bludgeoned. Lets bring in Michael Bradley i was hoping to see you many person next week i guess i will not but we appreciate you coming on. You guys do fantastic work probably havent slept in b about three weeks. Are there any Oil Companies you see that have been dumped out with Everything Else that dont deserve to be . As you know, weve been pressing halves in the Energy Industry those are the fies that have net debt to ebitdas. Dont have any debt wall coming due over the next two years. Those things have been pounded if youre thinking wow, these companies have been chxakedded down 50 or more this year according to last time i ran th. You look for the ones that dont have as much debt as anyone else if you wanted to buy some, those are them yeah, were not really seeing anybody gravitating down to those names at this point in time as you know, the biggest ib for the market is what demand going to lock like this year and next year and with those debt walls out there, especially in the next 30, 45 days, some of these banks will be determining their Banking Lending standards to these companies. Four, five months ago, those, the commodity price that they had there was high 40s, low twos obviously wti is much lower now than Natural Gas Prices are lower now. Michael, i just have a question since youre in houston. What happens to the houston economy is oil stays at 45 a barrel or goes to high pau 30s as jeff curry suggested last hour it could. Were not seeing that much of an impact. But one thing were hearing and obviously brian bought it up is the sarah conference was canceled i know with our firm and others we talked to, investors we talked to, behavior is going to be changing here over the next couple of months and so we expect demand is going to be down thats not good for pricing. Thats probably not good for houston real estate. Definitely is going to be b a change in consumer b hab er hab the next several months. Im not surprised because in a way this move in the oil markets has happened so quickly. Its been a month or two of this plunge so im just curious what happens when we get down to this level because for the u. S. Overall, low gas prices dont help as much they did for the consumer and low Energy Prices do hurt one of the stronger parts of the economy yeah, well you look at it right now. Theres going to be a big benefit for consumers. When the lower Natural Gas Prices as it relates to the economies. Theres going to be a lot of companies what are going to be laying people off. Right now, we expect theres going to be cap ex cuts this year of 15 given where prices are now, probably closer to 25 or 30 that means weyoure probably n going to be growing u. S. Production next year probably additional head counts coming so thats not good if you want to find a longterm positive, the production probably is going to go down. We are going to see the amount of growth slow down opec could take 600,000 off the market. Two years, a year, three years do you think there is a case to be made for oil prices i think theres a case to be made for Higher Oil Prices in 21 or 22. At the current oil price, most companies cannot make money. Youre going to see cuts happening. Theyre going to be fairly aggressive from here i just dont see that happening. Were going to be looking at flattish or negative growth. If we have demand start to snap back we dont expect prices to go for 75 to 80 bucks, but from where we are right now, 60 to 65, i dont think its out of the question as long as demand stays there. Ill miss you guys maybe go out and spend a little money. Thank you. Ahead on power lunch, this rally is losing steam. Were about 300 points off the highs. The dow is is up less than 500 about 491. Is the coronavirus really in back after this break. The Business World lost an icon today jack welch has passed away at the age of 84. He ran ge for 20 years and grew the giant and conglomerate from 12 billion to over 400 billion. Back in 1999, Fortune Magazine dubbed him the manager of the century, a man who worked for him for several decades and has known him for generations joins us now to remember his legacy. On the line is former honhonorwl chairman and ceo its a sadday because he wa an exceptional person. He had the courage he was competitive had a great vision took difficult actions for which he was criticized to reposition for the decades that were to follow and of course, the results have been obvious including some of the specifics you just mentioned. I thought that the most amazing thing b about him was he had the ability to see around corners. He anticipated things and allowed ge to take advantage of opportunity or prepare for some negative happenings that might occur as well so by vi chew of that commitment and courage, he was just a remarkable leader how did you guys meet and what was it like knowing him over the years we met in 1978 and i was with ge capital at the time and a little tired of the bureaucracy and we had a meeting in hawaii welch had just been appointed head of materials sector and he came to hawaii, ge capital was a part of materials sector. To get into a pingpong match and we were both falling on the ground trying to win i said to myself, this guys competitive. And then at the end of the conversation, he said look,en i know your frustrations, but give me a shot, will you . The rest is history. Larry, its brian sullivan. Can you give us another anecdote we like the pingpong one. Give us Something Else we may not know about mr. Welch we were going too a significant negotiation. We had two approaches we were going to give the person with whom we were meeting, the less desirable then fall back on a better one if we couldnt sell him on the first turns out he gave him the better proposal first and just as the guy was about to open up, he recognizeded it, pulled it from his hands and said thats our inferior proposal, we have a better one now he gave him the one he should have and got waway way with it that just shows his competitive spirit his love to know what deal that was in the making. What do you think when people talk about jacks legacy about what hell be remembered for . What do you think is misunderstood about him. First of all, he was compassionate guy despite this new term thats been tagged with him, but also he was fun i mean he celebrated he shared praise generously with those around him and he was just a good guy to be arn and he had a remarkable ability to rally you around whatever he wanted to achieve so people enjoyed working with him he was demanding and tough, but he was fair. Very candid. And he changed the culture of ge by virtue of those characteri characteristi characteristics. Thanks so much for join is ing us today knewacwe jk lch for decades. We mourn his passing today power lunch will b as a struggling actor, i need all the breaks that i can get. At liberty butchumal cut. Liberty biberty cut. Well dub it. Back so you only pay for what you need. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. 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 stocks are still well up, but they are off their major highs by about 300 points. Keep in mind that if you go from the highs of a couple week ago to now, major averaging are still in correction, down more than 10 , this is the sixth time weve had a drop of at least 10 since the march of 2009 low. And each time weve avoided a recession, and given back to new highs. Given the coronavirus now, is it different this time . Jeff is the editor of the Stock Traders almanac love history, good to see you. Weally make the same mistakes. Past from the present. But can we compare this a with a which we really havent had . The previous pandemics, most didnt do much most of those other big pandemics, others had much larger impacts medically that this particular one so far, so you put the two together, and were looking at the bulk of what may go down we had a down january, we look at the pattern that we put together with those most of the selloff and most of the markets pain has almost been inflicted, though those years weve seen a bill softed s. I wonder about the fact this is an election year, you may expect the market to behave in a certain way. Is that especially so now, would you say . The good economy is heart to beat. I dont know about that now, though its definitely a question, and pentup demand could easily pop out and have a surging growth my look at the data of the virus, a lot of us have been looking at something that comes out john hopkins university, pretty welldocumented data set. The recovery rate is pushing 50 . The death rate is steady at 3. 4. Thats great im more concerned about the regular flu which is already 300 deaths just in the u. S. But from the markets point of view, you have to price in the way people will react to this when we talk about who should get on planes, even if this turns out to be, you know, from a health point of view not as bat as feared, the marked is prices in a very different economy. Goldman thinking were going to barely average happen a percent growth over the next three quarters. I think everyone is jumping to extremes this early so far the impact has not been that great globally. Theres a lot of fear going on out there. Fear does seem to be spreading faster than the virus. We will see, and as i want, we could have that surge in growth. Did the market also sort of get rattled by the Bernie Sanders boom . The worth month of the best six months weve had some excessive valuations, some contentious election battles all of that together, throw in a pandemic scare, and you have the making foss a correction here, which is why we had the 10 correction whether it goes further depends on how we deal with it on a medical cdc level, and what comes out of the fed, any of the emergency cuts we have seen. Only one really worked, which was 98. Otherwise getting into fed moves between meetings, it just i think freaks people out a bit. Interesting. You think it would harm more than help if they did if they needed to do something, it would be better to do at the regularly skidded meeting. Jeff, thank you very much for much more on this market rally, stay tuned. Were going to take a quick break. Well have more on the dow 620point gain today and you can always watch or listen to us live or on e lbeight back. People know aflac. Aflac . But not what they do. So were answering their questions. Aflac is auto insurance, right . No. Uh uh. Is it Homeowners Insurance . No. Uhuhuhuh is it duck insurance . Nope. Ahhh do they pay me money directly when i get sick or injured . Yeah. Aflac you got it. You know aflac boom get help with Expenses Health insurance doesnt cover. Get to know us at. Aflac dot com. We see hat emerson,kthroughs when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Lets start where the market is kelly, watch this 200day moving average on the s p 500 the number, you know, whatever it is, we can stick there and hold and bounce up, its a good sign if we fail, maybe look out below. I want to see if 3,000 holds on the s p jeff curry last hour told us the wti in the high 30s, brian i do wonder if theres more down side for crude here. On that note, low gas prices might help place like costo one of the best performers today we all saw the pictures about the lines, and in some cases the shortages of paper goods, household goods. I saw 1. 77 a gallon gas from gasbuddy in texas . You save 325 a year but you have to drive to texas for that deal. Thats it for power lunch. Closing bell starts right now. We are seeing a significant rally on wall street best day for the s p in about a year the comeback continues, all groups within the s p are higher, except energy just slipped into the red at one point we were up well off the highs, as kelly and brian were discussing. Youre looking at a live shot of the white house, where the president is hosting a meeting with members of the Coronavirus Task force and pharma executives were monitor that and show yo
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