Dominate bonds surging, yields making new record lows today as the tenyear fell below 0. 9 opec backed the biggers cut, dependent on russias approval is thats all to come. Joining us for the first full hour, stover any link. Interesting to me, though. Week to date, only three sectors are in the red week to date the s p is up a couple . Today was basically just within yesterdays range. It is the market finding out to whats notable, though is the cyclical areas of the market getting brutally hit so were essentially pricing in a steeper slowdown today its not really just oh, the big tech stocks that were up what do you do on a day like today . Stay calm. The day to day action is taggers. What the implication is, earnings to the conomy, we cant model out that none of that so im looking at copper, looking at the tenyear. Im going to feel better im kind of quality upping my portfolio. I bought united last week. We talked about 300 to 250, nike 104 down to 85 with a 5. 1 dividend yield. And im hoping its going to come down, and i bought some wells farthero so im looking at opportunities. These are all going to go down, but im hoping they go down less im not touchen an airline. Not right now. Full team coverage. Bob pisani, biggest moves, on the drop in yields, mike has the market dashboard bob, first to you. Theres a lot of or reduced consumers demand out there. Madson square garden has also been down dramatically comerica is down 7. 5 , a fouryear low, big regional banks, a fouryear low, wells fargo, and i know its very easy to say, but theres a lot more going on with the banks. Theyre dooling with the potential for lower loan demand. Theyre also dealing with the potential for more loan defaults these are very important components so, guys, we have settled on the supply versus demand story. Notice that tuesdays extreme was violated, but heres something interesting. The 150 on tuesday has not been violated, the low has been 153 ever since, something to Pay Attention to with regard to are we all alone in this dynamic of flight to safety, which might be not be safe no, look at a 20year chart its historic, lets look to canada their 10s at 85 basis points. Theres a 20year chart. Youll never find another one. Its not so discriminating telling us about our economy its telling us about where people are running from and where theyre running to sara, back to you. A quick question. The plunging bond yield. At what point do you think that can act as still lug Mortgage Rates are plummeting to record lows. Where else should we looking for an impact at all i think everything thats out of the control has a Positive Side to it when things settle down a bit whether its lower yields, although unfortunately the big boys of the world gets to take advantage of them. The average person through mortgages, baby, even maybe car loans, but they correlate, but theres a big add, big haircuts to most of that. I think energy is the other extreme, but the average middleclass person will fill up for less maybe if theyre not so panicked, theyll drive more and use more energy. Rick, thanks. Lets go back to mike san tolli. What have you got today . Investors trying to navigate necessary swells and breakers in the market this goes back to june of last year it captures a lot of relevant areas that we have got through right now. This big nearvertical drop, and then very jagged attempt to put in some kind of a shortterm low, it kind of brought us back to these area, right the lows of the summer, when the low 2800s on friday, we hit there. Weve been trying to see if this is a cushion for the market. Back then it was only like a 6 or 7 pullback, we were in pan pick mode. So we have unwound the entire lift look at this chart, though, calendar year 2000, the daytoday action is very similar. A lot of the stats that are generated in the trading dynamics are taking you back to this period where we had the potential sovereign debt crisis. Vertical move, and then this very jagged attempt, violent rallies, massive selloffs. We eventually did retest and go down through the august lows in october, then finally had a recovery into 2012 i will say that valuations back then were much friendlier. We cracked below 11 times the earnings, bond yields much higher, so there was a little more play in terms of the you have butcher for valuations, but i think less confidence in the bull market in general in terms of that comparison, 2011, we had way bigger questions being asked about the future outlook than now, or so far. You would think, yes. Is the United States going to default on its debt . Yeah. Absolutely. In that sense what we have seen over the last couple weeks is aggressively more pronounced relative to whats on the cards . Maybe the valuations levels explain that, but also the inable to really handicap the range of outcomes i do think is significant. I keep pointing to the 9 11 2001, and obviously we had more existential issues on the table. What do you think wall street wants to see the big tests so we get a better feel yeah. That feels like a key uncertainty, and if we get it starting next week, is that the peak once we get familiar, comfortable, know its the peak of bad coronavirus, then we can start to model you think other people just dont know i dont know that the Health Experts have a good answer, which is how will it last . That is another huge uncertai y uncertainty. The other thought is the formula for making sure we limit the spread is to curtail lots of economic activity. For everyone to essentially panic, if thats the way around a wider outbreak, thats your other hit to the economic, you have to factor that in. Our what would make you star to buy more meaningfully would that be enough to step in . Misstocks im buying are down that much already. If the overall market was down that much, my bet is the cyclical sectors would be cremated, and then if theres strong Balance Sheets, im in there picking because im long term, but i have cash, guys, you cant go all in, because you just dont know, the duration will be important. Whenever we get comfortable with the peak of the coronavirus, the numbers here in the states, i think that will be the sign. Just look at china the Chinese Market was down 14 january and early february, then it bounced up another 14 . Can we trust that the fxi is green to me, which is astounding to me. I would like to know if people were allowed to sell. I do think you have to look back to yesterday, where theres a scenario under which the impact is relatively brief and modest if you want to bet on that, be brave, but ute have days where the market is up 1,000, because people have decided to look at the market and think maybe weve been overestimating. We have that set up we have Central Banks going all in to try to prop up economies, even in places like italy, china, so the setup for when this has passed would look strong, i would think. Absolutely. I think that we talked about it last week, lower Interest Rates benefits housing, Lower Energy Prices benefit the consumer. Consumer 75 of the usgdp. Jobs are still plentiful, wages are good so im not whistling past the graveyard i still think it will be the engine for the economy. Also not sure whether were all in on fiscal policy. Yes, china, yes, but italy, 3 billion, great 8 billion here, wont do much. Lets get to the numbers as it relates to the virus. Meg tirrell has the latest for us, meg. Hey, wilf, just new numbers from seattle and king county, one of the u. S. Hot spots. 20 new cases bringing the total to 51, and one additional dead in new york cases doubling overnight to it 2. New jersey and tennessee reporting first cases, illinois reporting its fifth. Some are related to travel, but a growing number have been detected in the community. Total u. S. Cases now approaches 200 in the u. S case numbers topping 97,800 with more than 3,300 deaths work continues to move quickly washington announcing its begun encontrolling patients in the first trial. This is a vaccine developed by moderna with the nih they will enroll healthy adults in seattle between 18 and 55 years old. Is there anything we can learn from south korea or italy, as it relates to some of these questions were trying to tackle on the death, where this is going, how long its going to last and how bad it will be . The last few questions are things people are trying to put a handle on. Its something ive been digging into today south koreas death rate is very low. A lot of people say thats because their testing is huge. Theyre probably picking up more mild cases and people in earlier stages of the disease. You cant potentially sigh that death rate rise as people progress through it. In italy were seeing a higher death rate a lot of folks say that speaks to the underlying causes of severe disease this is hitting an aging population in morning italy. Meg, as always, thank you very much. Still to come, retailers facing supply disruption well get a read with National Retail federations matt shay. Airline stocks remain under selling pressure phil lebeau tells you how its hitting the industry phil sara, when you look at whats happening with the airline stocks, theyre all under pressure, mainly because, as stephanie pointed out, shes not touching it as long as people dont have certainty when bookings start to pick up. Today southwest warning they have 200 to 300 million hit. Just two weeks ago, they were expecting to have strong growth, including Strong Revenue growth in the first quarter, and then they saw a big dropoff . Bookings heres gary keller end of last week, we started seeing sharp declines. Of course, you know, the stock market really reacted last week, and we had cases showing up in the United States. So not too shocking that we would see an impact on our bookings reporter if you look at a number of the Airlines Stocks today, all of them under pressure why . Because nobodys quite sure how long this falloff will last. Is it going to last through april . Will it last into may . Ive talked where a number of ceos today here in washington and yesterday when they were at the white house. Nobody has any guidance at this point. One other interesting note about the meeting at the white house yesterday, guys. Eamon javers and i have talked with a number of sources who have indicated following the meeting of the ceos with the Coronavirus Task force, a number of ceos pulled aside or had meetings with leaders of the Trump Administration and pressed them, the administration, to look for the opportunities where they can reassure the public, especially corporate travelers, that its okay to get back out on the road. That what were noticing, a large percentage of Business Travelers say theyre not theis said, no, youre not making this trip thats why youve seen a severe falloff. Phil, just going to mention were down at session lows clearly, phil, a falloff in demand as we heard from gary kelly. What about in terms of their supply what sort of percentage total are in play . I feeling like thats constituent relatively low then we saw some numbers, they seem to stand out, but the European Airlines have cut a lot more than the u. S. Have, so far. Because theyre farther along than we are here in north america, wilf jeff blue will be whats interesting to know, when you talk with ceos, they do not think well ultimately see a fire sale, throwing out 49 to go from chicago to new york, we want to fill the planes. They look at it purely as a demand issue, now the same as you might see during a recession. They look at this in terms of people either being afraid or being told not to make a trip. I think its interesting theres arch aviation summit when a lot of other events are being canceled i guess theyre trying to make a statement, though. Reporter theyre not too worried. Not one i talked to had said i was thinking twice about coming here theyre conscientious of whats going on, and they understand why people might be concerned, but they will not be changesing their patterns of travel, at least not the way we have seen with other industries. Also slightly dated propellers, as the backdrop behind you there were on to jets they days. Theres a few of them there. Reporter ill pass it along to the event organizers. Coming up, were going to talk more about this with Gordon Bethune. Hell join us on how airlines should be responding. We have just over 40 minutes. We are at session lows, just fractionally off of this the heat map for you, all of them negative today, and comfortably so, though we mentioned earlier only four sectors are negative for the week as a whole. The thing to point out really, financials, energy, theyre the worst performing sectors since the part of this big development. Even on the up days they have bounced the least. Financials down 5. 7 lets turn to retail evernote saying tjx, that exile is one of the best to weather the storm. The first says the company is an ultratrifecta that creates significant value for suppliers, consumers and shareholders over the long term. That stock getting hit with the market mean whites the spdr etf is on lets bring in matt shay, president and ceo of the National Retail federation youre constantly in touch with retailers across the country what are you hearing from them in terms of level of concern z. Sara, nice to be with you weve been doing our primary role as the association is to leaders. Weve done that regularly over the past few weeks we had about 7,000 visits to our website. We got very robusts information with updates on the coronavirus, and we did a call last week with several hundred retailers on with dr. Nancy messioniey and the cdc. I think its been talked about a couple times out supplychain side, a variety of companies were talking about have given you the indication that in many cases their factories are back online a major supplied in hong kong said 90 are up and runs they may not be at capacity, but theyre coming back. So it may be weeks rather than months i think stephanie got it right earlier, thats big unknown is the uncertainty about what the impact would be like, and if we cant inject some certainty, people would be more at ease if we put aside the hand sanitizers and clorox wipes, do you get a feeling it just shifts, or will we see a big, big dropoff across the broader Retail Sector . Wilf, thats an interesting question weve had asking ive probably talk to two dozen ceos in the past week, and also talking to consumers about that. The ceo perspective first, i talked to one ceo, and they said theyre feeling some impact. I talked to another ceo yesterday morning, and he said let me get in the other side of that trade were doing very very well righr spending shifting among certain categories, certain segment, and maybe even shifting along channels i guess that brings me to what washington mutualers are telling us more than 85 of respondents have told us they have not changed their shopping at this point in time. Thats only a couple days old. More than 80 indicated that even if this gets worse, they wont spend any less i think that suggests sort of what youre inferring that at the moment, even if it gets worse, they wont spend less, they might spend differently. Thats not what were getting from the market, matt. If you look at some of these big sharp moves in some of these retailers, theyre getting slammed. How about the balancemayesed or Department Stores that were suffering before the onset, what do you think Companies Like that i think across the industry over the past few years, and that is that, you know, a Strong Economy is not distributed equally across all companies, and doesnt result in equal levels of success for everyone when this ends, and this will subside. Those companies that are well positioned will be even better positioned thats their competitors. On the supply chain fulfillment, and fulfillment is not about suppliers exclusive. Its about data. Thats what drives supply changes and fulfillment. Thoth companies will take share away, because were at a moment were in an environment where people are taking share from others thanks so much for joining us, matt. Thanks, wilf. Dont mitt tonights special report another massive move. 35 minutes left in the session, 30 out of 30 dow stocks lower, the overall average down 1100 points. They talked about all of that yesterday, and heres what they said about the impact. We made a decision last week to begin to up production in certain areas where were using a bit of the analogy of whether or not our natural disasters, where do we see demand at a greater rate we have you said that level of production to be able to maximize our inventory shares of General Mills up more than 7 in a week, campbells up 15 . Revenue estimates on alphabet say it will cause less search and spend on travel he also said since they have the highest grorge margin, results will be impacted the stock is down 6 today. Deutsche adding ultimata beauty as a shortterm catalyst, saying the Beauty Industry is largely insulated from the coronavirus concerns deutsche sis the only domestic the stock is down 5. 6 1 2 these stand out to you, stephanie . Yes first, mark klaus is a rock start. He was a captain in the army hes worked in the business for a long time at kraft, and then sold pinnacle. I go with him for sure i know the stock is up a lot, but only 20 times. For a staple in a turnaround mode i like that one a lot. This pop theyre seeing because people are hoarding canned soup . No, i think theres a turnaround happening here. Hes trying to make it healthier, not just canned theres a lot theyre doing. Maybe the pop short term could be the pantry loading, but i think theres a story leer the only other one i would say is ultimata. Im itching to buy it, but this is 22 times forward, it has no yield and high, high beta. So i believe in the company and the turnaround there, and theyre doing a good job in the skincare we saw it with estee lauder, but at it 2 times, its going to move much more. We just talking to matt shay about the retail hit what about companies that that have more on i went on amazon to buy clorox wipes today it will take me a week to get them. The bullish call on tjx, yeah, sure they have a model thats resistant, but thats back people go and browse. The whole strength of tjx is not exactly strength at this moment. I think it looks really stretched in the short term. Thats what you want about zoom video still to come, by the way, we will talk about potential buying the dip opportunities in the tech sector with ledgen dear investor Allen Patrick if youre just joining us, another massive selloff on wall street the dow is down 1,000 points its odd were getting used to these moves. Yesterday the dow closed up 4 , now coronavirus back in the spotlight. In terms of whos getting the harder, utx, boeing, jpmorgan. Its that cyclical things. The kpw bank index moments ago was down 7 for a basket of 40 to 50 bank stocks that is extraordinary. The reason i sensationalize that a bit, they havent enjoyed the bounce, either banks are down about the kpb index is about 23 , 24 from the december high, down more than 20 from the february high these guys havent enjoyed a boujs. Thats because people think its 2008, and these companies are different. Thats why i was buying a bit of wells. I dont know the bottom. I dont want to own a ton of bank it is in this environment, but at some point youre going to have a bounce i think theres another element, going back to your point earlier, theres a lot of machinedriven selling im sure many algos, with the tenyear dipping belined 0. 9, lets sell some banks again. Overall market down 1,040 points here are things driving the act. Opec with its biggest cut Business RoundtableJust Announced the formation of a task force to coordinate action between the private sector and the government chaired by marriott ceo arnie sorensen. And will include jamie dimon, ceos of pfizer, nasdaq, j j, home depot, also the brt announcing its potts uponing the ceo Innovation Summit and secretary azar will be attending that meek. So clearly companies trying to get on the same page with the government, because weve heard so much about companies being more conservative than, say, the government they have legal responsibilities, too. I am hearing a lot more intrau. S. Bans not just international, starting to see dont travel at all. We are down 3. 7 lets go back to mike for another installment of the dashboard. If we need a bigger boat, looking specifically alternate credit, which has largely been spared, but its starting to flash some signs that maybe it is weakening heres basically a chart of the prices, etfs of highyield bonds. Its a proxy for highyield credit spreads what you are seeing is proust pronounce pronounced now, the prices of highyield bonds have softened up, therefore the spread is wider, but its mostly happening because of the treasury yields going lower and credit yields in and out following, so right now youre basically saying its something to be concerned about. We dont know if it will morph into greater stress. Some stocks of highly Leveraged Companies are getting wallop ed however, look at the yield its an 2. 3 right now thats very undemanding of investmentgrade companies if thats your hurdle rate for investment, buying backs or doing whatever, its a very low one. At least in theory if things calm down, it could be Balance Sheets as well as share bryces eventually in the very short term, mike, whats happened to credit . Its not necessarily even back to where we were in the Fourth Quarter of 2018, but its not far from there i think were in the zone of nothing is bad as early 2016, but since then its getting toward the upper end of the range. Thanks, mike. Stocks have improved, by the way, the dow is down less than a 1,000, it has, of course, been a very volatile week swinging more than 1,000 on monday, yet to the up side down almost 800 on tuesday, and today falling another 1,000, andlows just of of that. Our next guest says if youre a longterm investor, you should be buying on the dip the exits in the past have included Huffington Post and health plus one. Good to see you. Nice to be here with you. Im excited for the success. Maybe well come to that. If youre a longterm investor, you actually think this is something that creates opportunities than fear. I learned a long time ago from an astute person in the market he said if you love a stock and really know the fundamentals, not that you said it, but if it goes down 50 , you should love it twice as much that concept has stuck with me for a long time. If you have a company you really like and know, i certainly would not be afraid about dips but at the moment in this volatile market, i would be staying calm and not doing anything, frankly, but i think the opportunities will be here. Weve seen a lot of blips in the last 10, 20 years. Whats it done to your Market Private quite, do you get to see lots of opportunities to buy companies . Are they strongly correlated or not really. Were investing in young companies. Its interesting, the companies you put up there, one is in podcast business, skim and axios, everybody keeps reading every day. Companies like that do well. Company that is relate to staying at home, not having to go and travel, i think will do fine in spite of this blip, but we shouldnt get overly nervous, though no one likes to see declines like this but when you see volatile markets, the best thing is to keep your hands in your pockets for a while. Why are you so cold front this couldnt cause a more prolonged economic downturns. I saw the 70s, the 80s blip, the 90s i think were going through this is serious, no question about it, but i think, you know, if you hold on to good fundamental stocks, i certainly havent owned any stoblg i own in the last several weeks. What are you looking for to get more confident what will it take for you to buy . I think whats happening in the political season, picture, think will help. Once that stabilizes, and we have a more normal environment, which i think were headed into, i think thats going to be a stabilizing force. I just think that general economics, in terms of what, you know thanks god most Major Companies are in good financial shape. Thats a very important fundamental did you think that tech stocks had gotten overstretched to the up side. I think you would have gotten a modest pullback no matter what i think were going into an environment of anticompetitiveness i think well see the googles and facebooks, there will be a lot of congressional scrutiny. Where those Companies Stand visavis all the other Smaller Companies will be seriously considered by congress and the public and probably during this electionl about worsening conditions and having them start to ask questions about covid19, head count i have to mile i remember very clearly sequoia put out the same kind of her. Make sure your Balance Sheets are in good shape, keep yurt head count tight, but i think what theyre saying, anyone who is a rational business person wants to make sure their house is in order. Were saying that to them every day. We didnt say just the last week, but yes, we would reinforce it, make sure you have it under control everybody is feeling the effect on this. I heard peat nut butter sales are an exception do you think it will be hard to exit any of your investments for the rest ofthis years . I think the near term, i would think ibos depend on market windows you know, people try to catch a window when it opens the window hasnt opened the last couple months weve got to get through a much more subtle period lots of quiet filings, but i think to come out you would have to be pretty gutsy do you think m a will be put off for some time . We have half a dozen that are in process i havent heard anything, certainly in the last week that would indicate they shouldnt continue, and, know, prices that are proposed, and we we have every coached theyll be completed. Just reading the post, theyre calling it the black swan of 2020 do you think theyre too worried . No. Listen, this has been described as a pandemic. I just heard its only a rumor, im not saying its true, but some universities are saying kids dont go home for spring break, stay in place, because people are trying to contain everything where it is i think might get are being canceled, and it will affect the travel companyies 50 , 60 , but as long as on. Thats not a blip you said it was a blip in the market i just dont see it going straight down. I think well go there an adjustment i would say well see this thing settle down probably in the next two, three, four months and well see a recovery, and well be sitting here a few months from now watching people getting themselves back in shape. In the meantime its uncomfortable. Its no fund. We hope youre right its alleges a pleasure to see you. Thank you for having me. And dont miss the special report tonight at 7 00. Coming up on this show, were going to talk to a technician, tom mcclellan, and what hes seeing in the charts lets have a quick check on shares of zoom video, that consider add coronavirus beneficiary, Video Conferencing company, of course its up 5 it fell last night, but of course its up hugely. Casino stock performing much worse its a innocent in his 50s who has a child enrolled in clack county schools el dorado now off more than 15 , red rock off 14. 5 boyd, mgm resorts taking it on the chin the worries about how this coronavirus affects Consumer Behavior and conferences is also driving down which is almost 13 . It gets most of its revenues overseas so its faring much better today. Win is taking it on the chin as well suntruth records that roommates are taking a less dones well. Sources tell me the funding commitments are in place and the credit will not be an issue there. Contessa, thank you so much for that we have just independence 15 minutes left in the session. The big board, major averages, as you can see are down significantly, but just off the lows were down 3. 6 on the s p 500 youre looking there at the biggest dow laggards. Lastchance trade time going for quality i owned this stock last year i took profits but theres also Free Cash Flow generation thats going to improved this year and the next several years. Theyre guiding 3 billion appeared i think theyre going to theyre going to, its immune to coronavirus. I think you should explain what they do yeah, defense contracts, and by combining the two companies, they actually are more formidable competitor to the big guys as i say, they have margin up si side. We have 14 minutes left of the trading day. Were now in the market zone, commercialfree coverage. Mike san tolli is here to break down the crucial moments and we have stiff any link here as well. I think they cut 50 at the next meeting i think jay powell understands that negative rates are fatal to the Global Financial system. If we go into negative rates, there will be capital destruction en masse gundlach calling for a hes been predicting what the market is saying so thats its telling you essentially. Whether its true or not, thats what the market is braced for. It is signaling at least theyre moving at a faster pace and hopefully instills some sort of confidence. Clearly the move this week didnt theyre moving quickly to do whatever they can do. The market usually gets there first, the fed is following. I dont know if that would be one for one. A couple oceans about today, tenyear note yield made a new low. The s p 500 did not. It still held above the levels from friday. Im going to stick with my plan all week, with not extrapolating a single days move. The lows to the s p over the last several days, we basically kind of settled back into that same zone, and then refused to go lower i dont know if thats decisive . I doubt that it is, but its telling you the bond market and stock market have gone a distance into pricing in a dimmer scenario. Where do you want to be in a low rate world you do want to be in some of the defensives i think of those three, i prefer the staples. At least theres a consumer backdrop theyre as expensive, not as expensive, but i have to say, im not all in on defensives, guys, i cant by theres too much value being created. I get why you dont want to own them nowe banks because yields have been falling. Kpw is now down 23 from the december high, now down over 20 from the february high clearly as we have discussed often, falling yields not good for the banks earnings, and certainly not good for the share prices because of the very strong correlation we see between rates hand bank stocks, but just one of the flags on reg valuations thats been done. Autonomous research, and therefore what it means for valuations under three different scenarios. Currently before the last two days moves, stocks are on an 8. 5 times pricetoearnings ratio. If we see a 100 base points total, they would be on 9. 2 times p e. If we see a fullbrown recession, the group would be 15. 6 another measure of that are vail is different yields. One big question we hais wih dividend be cut . The answer is most probably not. Clearly the group, though, not trading like some of those safe highyield sectors that sayera just mentioned, though they share some characteristics actually theyre yielding some pretty good dividends themselves they have, one of way to look at them is the actual debt of the financials, its not raising any alarms right now, just because they are so well capitalized. I think its one of the ways the market is forcing you to say recession or no, right if you think recession its defensive, and if its no, then all of a sudden banks and cyclicals are starting to say theyre overdiscounting something. And thats broadband drawn not from Economic Data jobless claims were not a problem about, but if it hits cruise lines, airlines, Business Travel, events, malls, it starts to pile up in terms of the damage. Thats why i go back to how comfortable are you with the consumer how much do they pare back businesses have already pared back so its going to be the consumer, and how can they hang in back on the banks for a sect, im waiting to see the alternate alts come in those are the ones you may want to be picking at. Just want to quickly end with a fiveyear chart, which is go back to 2016, when people were thinking we had a zero rate environment forever before rates started to rise, and we have a long way to go to get back down to that. Very simple, very crude, investors are thinking ratings are going to zero. Whether it affects the eps or not, thats how people are thinking, but clearly, you know, they are making a lot of money and the dividends are pretty strong. But their yield is 2. 7 im not sure people will gravitate. You know this. They have the most exposed on the yield curve. So i think theres a point where you do want to back up the truck. One setment bucking the trend is kroger. Report ago beat on earnings and sales for the quarter. Kroger reiterating their guidance, citing krogers limited supplychain exposure to china, saying its too early to measure how it will affect their business overall basically they kept guidance without the big boost. Heres what the cfo said on the Conference Call in the last few days customers are spending more on water and hand sanitizer, soap, paper and boxed dinners. Company also has rationed the number of certainly sanitation and flu products from onloon orders, guys, limiting them to five per person. Clearly the view here is names like kroger and costco will report after the bell, will get a tick up in business, so they continue to play it down they want to show theyre in the middle of a nice turnaround and want to show results, sort what was we heard from campbell at least they had better comps, better xfield gross margins, and i do like the turnaround story there my heart is in costco. Its way more expensive and worries me more, but i have to think theyre a huge beneficiary as well. Youre not using more paper goods though costco was up. Its just a harbor. You could away if you go out to hoard toiletpaper, youre also buying groceries and not going out to eat as much in the meantime, the n. Sector getting hit hard. Our own becky quick sat done withicsens ceo moments ago. They discussed the coronaviruss impact on oil. The investment cycles that we make you are fewer than our strategy and laying out our plans is to make investments that are robust to the down cycle we have a key competitive advantage. We build these Advantage Investments that are robust, and use our Balance Sheet to ride through the turbulent times. The economy will continue to grow the demand for energy is going to continue to grow. Mike, to the point about the two worst performing sectors as of late banks arent anywhere near energy very much is. Very much itsic the pattern all along it seems as if almost anything that comes look is an increme incremental reason to lighten up its difficult to see when so much of the world is operating on a slow speed or stall at this point the commodities keep piling up oil down again. Mike, youve been looking into the market internals here. Another lopsided negative today. Up down volume, another 90 down day pretty much, give or take. Thats multiple ones weve hadriesly. Utilities agains big chunk, showing a wide divergence. The volume activity index has popped back above 40 even though the markets above its lows thats pretty much at the closing highs. That still shows you a bit of hazards market. We are just under two minutes to go up town to bertha coombs. We are seeing here in the nasdaq falling back into correction negative for the week, but for the week still up, because a lot of the big caps are holding on to their contains, over at least the two sessions ive been up so farp zoom has seen a big reversal the stock disappointing in terms of the outlook for more business as a result of coronavirus nonetheless they are higher. Take a look, a lot of the video chat companies are moving higher im here on the floor of the stokes we have one minute left. Down 3. 3 on the s p 500, well off the lows, which is down more than 4 . Regardless, another massive day of selling here. Yields have played a big part. We have 1. 4 to below 0. 9, but the used itself is off the lows. Banks, energy, defensives continuing to suffer bob pisani joins me here heres the story. Weve a lot of debate. They of the demand, they of restaurants. Some toustuff isnt going to co back we are down 3. 5 , 967 points on the dow, a bit off the lows. S. Welcome, everyone. You have the real cyclical trades, those tied to the fate of the economy still, a big selloff there. Also getting swept in with all of the selling, bond yield with new record lows. This is crazy action well speak with Gordon Bethune on the chief investment strategist, Michelle Meyer is here still with us first to you, bike the s p has moved at least 2. 8 , alternated up verb down, and as extraordinary as that is, its not necessarily niche after the scholls and the fatss faste faster and i just observed that the last five days, so in the zone of s p 3,000 orb a little below that. Times in terms of metabolizing in terms of the markets, this is what this is what you get. What its going to results, what the containment me going to be. It is a typically pattern, if you are sort of finding a bottom to have some retests, toss relatively weak breath, and ultimately you retest we olympicsly havent seen that yet. That registered at the highs of janner so add it up, what are you telling your clients to do right now . We havent made any recommendation changes for the last three years, weve been neutral to keats, which just means dont stay above your normal longterm allocations that will vary by investor we have taken a spread that. And on a relative basis, i think thats still the way to go here. The profit fundamentals, the Balance Sheets, percentage much Zombie Companies is still biased toward the largercap. But since weve been bounding the table since 2018, be more cognizance of diversification, and more systematic and frequent rebalancing in order to take advantage of these swings. Kind of basically stay on the right side of the trade, so to speak. Trimming on the moves down to the extend its been significant, or trimming on the way up, adding on the way down its a triedandtrue disciplines we always espouse. Michelle, as a head economist, how do you try to gauge the impact on the u. S. Economy. So you first think about the direct hit, and you can gauge that you can look at how supply changes are disrupted, you can get a sense of how production may or may not return, and understand the business reaction what i think is further is around the consumer reaction, whether or not behavior is changing that can happen swiftly, and also happen driven by whats happening in the market. Consumers are worried about their health and the finances. They start to become more cautionary they start to get between what consumers are doing, what markets are doing. I think were seeing it a bit, i think its inevitable, but we dont expect to see a real painful one that brings down the Global Economy i think at this point theres scenarios we can play with, and we have to think about the linkages and adjust forecasts as we see the data comes in, which will be serving. Stephanie, where do you stand on whether the market is selling off because of the fears of a recession or wild swings in sent mjts i definitely think there are fears of recession, because we cant model anything heres the thing, though, guys, the dow is only down 8 on the year the s p is down 7. 5 , the need dak is down 2. 6 it feels so much worse, though, right . Because of these major swings. We talked earlier its algo more rhythmic, and i do think there are stocks and sectors do you think way more than the averaging, punished beyond belief, that you have to take a stand, and youre getting them on sale. Just remind us exactly what ive been doing with that advice. We talked about some of the names ive been buying so its still expensive. Thats one i want to absolutely buy, the number one Animal Health company, a phenomenon management team. Im not aggressive on technology i know you want to own some growth, but i think you have those companies to come down lets dive into the Rick Santelli has an update you know, if you look at charts that start on tuesday, heres what you want to watch for. Theres the tenyear we took it down to 89 today. We violate that with the time remaining in the cash markets, that wouldnt be good. 30s have left the 150 spike on tuesday unchallenged, and theres a bit of a cushion at 154. Thats a good thing. The curve has flattened a bit today. If we look at the notion i get it, but heres the tenyear spreads by barclays Investment Grade and he yield. Sara, back to you. Michelle, youre an economy that words on a trading floor. Whats it been like. You can imagine the reaction. A bits of how low can we go . Obviously the fed cutting in a an emergency fashion, signaling theres more to come, the market requesting that more should come, and the fed not looking to disappoint markets, i think theres a view we could see further capitulation at some point, but people are also trying to think about what comes next is this an l shape or a u shape . There another side if there is, at what point does that become a point of entry so whats your view make its a deep u. It may feel worse before it gets better, but at the end of the day, the fundamentals of the economy were quite sound prior to the buyers hitting in a significant way, so the question is when, and it might take some time do you not think the fed cuts again . No, i think they cut. You think its already priced in i think thats largely priced in i think they cut in 25 basis ponce, followed by another 25. Maybe the viewers have done what they need to do to stem panic i think the fed is hoping to stem the tide. What would that do to stocks . 100 basis points i think what would it would do, it would do before the cut came i think its the conditions under which youre getting that cut. Who knows, maybe 25 is a disappointment if thats all we get in a couple weeks. I think you have this profound situation where the federal funds rate is above 1 , and so thats part of what i think the market is trying to assimilate do we get to 39 on a pmi like china . I dont think we do for china it was so dramatic the economy shut down, the factories shut down. It was an extreme set of quarantines. I dont think we get that here in the u. S the big concern in the u. S. Is we are a function somewhat of whats happening in china, and factories are moving again, product could slowly filter to the u. S. I dont think the shock is as huge to the Manufacturing Industry here in the u. S. As it was in china, butsh imagine and we are forecasting we talked the last couple days how energy and banks have suffered the most. Have they gotten cheap enough to buy those sectors . Were making some adjustment toss our sect are sector recommendation right now, for lack of a better word. That means im quarantined from talking about sectors. You know, i think thats clearly one of the reasons why small caps continue to underperform. This is a much heavier bias within small caps to sectors like that. I think that ties into some of the factorbased performance that youre seeing all right, liz ann, thank you. Another massive selloff, dow closing down 969 points. Back to bob pisani on the floor of the nyse. We are grappling with the demand destruction look at Carnival Cruise lines, 11year low here some of these cruises will not be rebooked. Livenation, people will not go to some of these concerts. Just because theyre canceled doesnt mean theyll be rebooked darden owns capital grill steakhouse, some people will not go back for three months there you see them in the big decline there. Banks the same situation, new lows on comerica we see lower loan growth as well, and possibly higher defaults so multiple things going on. Thats why were getting this chaos. Is it a vshaped or ushaped its good deal to be to be vshaped ushaped is the best we can hope for. And the hit is on the supply and demand sides it is both of those. Back to you. Bob, thank you. Or a slow u . Michelle, one question i do have if we see much worse expected in china, but not a domestic shock here, will that drag down the gdp . We learned from the trade war, the european debt crisis, we have learned we are a Global Economy so even if it doesnt turn out to be a domestic shock, we will see loans. Were already seeing the hit to production here in the u. S. , but it becoming more problematic if it does change behavior here on the ground, and if businesses change how, or consumers start to hunker down, save more, buy necessary items, you do see a hit to the economy certainly. I feel like were talking about the worstcase scenario, the gloomier outlook on what could happen on the plus side, rick showed us a credit chart were not seeing liquidity problem. Talk about the things that people are watching as we have this recession debate or how sharp this is going to be. Its not realtime stress, its anticipatory of what might pop up in terms of cash flows being pinked, things like that so thats why the market is trying to admarch the punishment in the appropriate areas i also think, you know, we mentioned, were talking about the down side, what kind of recoveries, we dont really know the slope of the down, or whether it will be a pause i do think theres a scenario, you will hear people say it, that this perhaps is a fairly contained stretch of modified corporate and consumer behavr,iy last very long, and we find ourselves on t knows, a full percentage point of fed rate cuts and then what happens from there . You have a pretty dramatic snapback presumably. Do you read anything into the fact we dont close at the lows . Clouding d closing down is a bit painful, but not past 1,000. This one little level of the s p around 3,000, folks came in, didnt let the index go down too long on any of the recent down days, is that significant . It could be. Again, i dont want to scrutinize every twist and turn. I thought thats why we had you. But when the market is moving 3 a day, it doesnt stand up too that line by line reading. Thank you for joining us Jeffrey Dunlap was on cnbc earlier today. Obviously the airlines are in free fall, and Small Business activity will contract i think its toolhardy to think anything other than this is going to take a major hit to shortterm growth. Maybe Grocery Sales will go up, but all other kind of social activities grinding to a standstill jeffrey is best known for some of his calls on bonds clearly he hayes seeing the action in the bond market and bond experts tend to be often gloomy, but i think what hes saying is whats being factored into the market right now. Sharp selling, trims, and bank stocks. And his point about the Airlines Goes to what bob was saying, thats not coming back at any time. Though, what we were just discussing with mike, that Balance Sheets, sure maybe american got more leverage that delta orwhatever it might be, but were not talking about companies that are about to go bust, yesterday they have fallen agrisively the cruise ships have fallen 50 . I do think theres a question how long the resistant to cruising last. Its the quite thatequity thatg the hit right now. While the virus has been the top and center, to be mclaren thinking the selloff could in part by attributed to politics he excite it to key events in that year, to todays market he sees similar Price Patterns however hes finding in addition to coronavirus, senator sanders ease successes also pushed the market lower he us now. Tom, thanks for joining us we put up a complicated graph, and a brief summary. Before getting to that, the other point that stood out for me is just how stretched you felt weve gotten before the pullback, regardless of what the spark ended up being being for the pullback and there were several catalysts to give us a market selloff, any one of which the market could have handled on its own. And then people facing the prospect of a socialistic democrat and the market bottomed on the 25th of february, the day before sanders won the South Carolina primary, and then another boost after excuse me, after biden. And then another boost after biden won on tuesday todays pullback doesnt quite fit with that model, but the market seems to be happier facing a biden prospect than a sanders prospect, but we still have the problem of the virus, and the fed being too tight. They need to do another half a point rate cut now is a good time why wait for the meeting you can do the right thing anytime. Theyve done 50 basis points before a meeting i guess to push back on which of those factors, you could say politics has improved a lot, and the fed has certainly improved, albeit, you want it to prove further. The one outstanding issue is the coronavirus. Do you not think corona is having a big weight on the market at the moment it certainly is probably a heavier weight on everyones emotions and psyche than the actual effect, which is not unusual. We saw that with the ebola panic in 2014. Everybody was fearful we would all die from hemorrhagic fever when it finally seemed like things the authorities were getting a handle on it, the market rebounded and made it back and more. And thats the nature of reactions. We are humans. We still have the caveman brains that caught tows react with fear to anything like that, and not to act rationally. Im not saying theres no reason for worry about the economy, but im saying that investors have a proven b89 to overreact, and think seem to have done so you dont get a chance to buy a 40 vix, or oscillator reading those usually end up being opportunities if you can take the dead cat bouncing and flopping that goes on for a few days afterwards. What are you saying weve seen the bottom for now . We have seen the bottom for now, another two weeks to go into the fomc meeting, but then well have more weakness into the summer, probably around june for right now, theres a chance we can get a faceoff just because of stretched the rubber band so far and up one day, down the next with huge numbs it doesnt have to mean a bottom you go up for years from, but we do have to have a bigger recovery as people get over their fears. Then we can worry about how the fed didnt do the right thing at the next meeting that will be what gives us the next down leg into june. Tom, great stuff. Thanks for joining us. Thank you. Tonight dont miss the cnbc special report at 7 00 p. M. Eastern time costco earnings came out moments ago. Courtney reagan has a breakdown. This is a beat for the costco quarter. I think its important for us to talk about this quarter ending february 16th. So for costcos quarter, earnings per share of 2. 10, Beat Estimates of 2. 06. Revenue is 30. 907 billion, stronger than the estimates. Comp sales again for the quarter up 8. 9 , including gas, stronger than the streets consensus at an increase of 6. 6 . Separately costco reported comps for the entire month of february by that, they were higher by 12 , and specifically calls out an up tick in the fourth week of february, citing the increased demand related to the coronavirus saying they believe it added about three percentages points to the 12 comp two different comp numbers, one for the full quarter ending february 16th, one for the entire month of february weve been all over the map as we have this name, and separately, if i could pivot quickly to gap, we have news, the company nowofficially naming a new kreismt off songia syngal has been with the Company Since 2004 she was slated to run old navy in the previously planned spinoff that is no longer happening. However, gap has said they will become the ceo of the entire company. In addition they have named two new board members, Elizabeth Smith and amy miles. Shares of the gap are also slightly higher. Quick question. Does costco always break it out like that . Or we they specifically trying to highlight the impact of the virus . They still gives us they monthly comps. Sometimes the calendar doesnt end clearly with the end of the month and the end of the quarter, so there are instances where they have to give us two numbers in the same release of course, the end of february ended up to be a pretty important period of time thank you costco and gap trading up. Take your pick, mike. Costco very rare, obviously a 9 comp for the quarter. Whatever the effect was as a company this size is still pretty impressive. Gap, the markets valuing Companies Like gap as if theyre not really fixable a new ceo seems like from the better part of the business. There was talk of splitting this company up. There was its constituent pretty debt cash flow. The market doesnt want anything that has more than 1,000 stores, basically. And everything is on sale at all times, gap and old navy. Lets look at how we finished up the date dow lower by 969 points. That was a lot of 3. 5 s p 500 down by 3. 3 every group in the s p was lower, led by financials nasdaq down 3. 1 in the russell 2000 index of small caps down 3. 4 , as we saw another rush into the safety of Government Debt lets go to meg tirr for the latest details on the virus. Cases worldwide are inches closer to 100,000 as chinas new daily case count decline, but numbers across europe and increasingly in the europe schools choicing in at least 22 countries affecting millions of children, according to the United NationsJohns Hopkins data shows about 54 have recovered, and more than 3300 have died. In the u. S. Case counts jumping today, led by new york and Washington State new york cases doubled to 22, while washington, seattle and king county reported an additional 20 is cases and one death. This is Testing Capacity has expanded here and will continue as commercialcompanies make their tests available. Labcor saying tests will be available by 6 00 p. M. Tooj. Finally the Senate Overwhelmingly passing a spending bill for the response to the virus today, the package has been sent to the president s desk why is the u. S. Having so much trouble getting testing when south korea has tests, china has had tests . Why is it so difficult for us . It was a delay in the rollout of cdc tests, so the cdc has had to replace some that didnt work. Theyve to figure out workarounds, and now theyre changing regulations, so commercial companies can work faster to ramp up their testing, this has been delayed by the initial rollout at cdc. Meg, thank you. Tomorrow mike pompeo will discussion the coronavirus and much more at 8 00 a. M. Eastern time at squawk box. Mike has the third installment of the dash did not board. Professional investors starting to trim their sails this is a Weekly Survey of the National Association of active investment managers, very tactical investment advisers, and this shows you the extents of equity exposure we had that 20 decline in the market over the course of three months this should be taken as a net positive it doesnt necessarily like up with every other bit of positions and sentiment, but its starting to get in that direction of people are scared and theyre playing very small in the markets that speaks to this volatility environment. Maybe it will find its footing. Just to make sure the market moves and actively withdrawing cash exactly its both. Its mostly discretionary moves. Mike, thanks so much for that. A check in on the closing bell big board. As you can see weve traded down sharply the major averages were down about 3. 4 . Meantime, southwest could see up to a 300 million decrease, and greatery kelly says theyre seeing a noticeable drop in booking. Hopefully this wont last very long joining us is Gordon Bethune, chairman and ceo. What sort of financial pains are these airlines in for. I think in the short term theyre in for pain. Theres a lot of up side i do understand in the short term, because its a cash issue. And all of them are doing that this is an evolving story. But the gut reaction appears tore sell the airlines on the fact that more companies will cancel travel. I think thats true, except for the fact that there are antidotes of this being developed. To the panic that per raid our country now. Its not a big number, but the fear factor, subjective as it is, is pretty widespread so thats not something a rational person can project. Its an irrational fear. Its going to get worse, and i think we all know that gordon, how do you think about the stocks with the epart likely to fall are in the low Single Digits is that a possibility . , will i think the fundamentals are good i really believe the fundamentals are good. Its going to recover like was mentioned earlier. We just dont know how far down it will go you were in charge of continent, and thats another person when Airline Travel just stopped. Absolutely. Do you see any parallels, and how the airlines might prepare or respond sara, at the time, it wasnt the end of the world, but you could see the end of the world, and it felt like that for eight months a long pull through that reallyi i think its going to be faster moving hopefully ostensibly, these times of viruses abate there are antidotes, and better testing. So there are a lot of good things that will mitigate the problems were having today, and i think that will be reflected in longterm or this years earningsio what should americans be doing it depends on what overseas were talking. Theres some countries that are zero and not likely to be affected. What about europe well, in different parts of europe, theres very different outcomes theres no cases in denmark. I would be select iive when your talking about your children, are probably a little more conservative than you are yourself dont miss the special report tonight at 7 00. Paul, break it down for us in terms of that leism of volume tilts and the huge moves weave seeing i think, wilf in the short term, we dont know whats going to transpire over this whole thing, but during these types of shocks, what we saw in 2015, 2011 deal speed all the volatility, you sprited to hear this is the as long as we continue to see that type of pattern, you know, its thats encouraging the big test obviously will be tomorrow we all know the headlines are going to get much worse before they get any better. Were testing more people, so the number of cases will go up we havent had a friday thats been positive this years since the outbreak came out. And so if we can see any extort of stability tomorrow, i think that would be a positive signal. You know, again, in the short term you tent to see the volt tilt, but in the long term, theres a number of studies, as mike san tolli was talking about, you tend to see this flopping around like a fish in the short run, but eventually the market rights it own what do you think of the scale of movement in the bond markets, and people are saying are they moving ahead of stocks . You know, i think right now, if youre buys bonds, youre definitely not buying them as an investment at this point i think youre pretty much buying them on the hopes someone will buy them from you at a higher price the longterm u. S. Treasuries are in the miss iing where the year over year return was greater. When youve seen longterm treasuries rally by 25 or more in a given year, you have seen them over the next year, just about every time by an average of 14 percentage points. So i mean, the bonds are reflecting the uncertainty out there. Im not going to sugar coat it theres a lot of uncertainly out there. Investors are right to be uncertain, but treasuries have rallied on that. The question is, can equities look through the coming back headlines well see as the number of cases goes up. Number of School Closures increase, and travel disruptions rise we dont know when thats going to end, but starbucks is just announcing right now they have seen the worst in china. They havent seen any impact yet on the u. S. Operations, so i think thats something its a waitandsee game. The market hates uncertainty unfortunately we have a lot of that right now eventually well look through this and get past it. Were not in a place where the market is looking through headlines, as paul was saying. No. What would it take to get there . I think it will take time and just continuing to whip around these levels and see if the market can withstand it. Were still talking about headlines that say six new cases here, four cases there its not like we have a handle on the aggregate trend in all of this i do think that, you notice i go impact to the example of the post9 11, you had a time with a bomb scare here, and travel restrictions, and for a while the market jauss jerky and jumpy about it i dont know if weve had enough times to be saturated for long enough to say, okay, weve got this, we kind of know where its headed. As paul was saying, its kind of textbook, one big reversal off the low, and then maybe we have to hash around there. Paul, thank you for jumping on the phone. Okay. Sure, thanks still ahead, investors may prefer joe biden to boyce boyce, but a closer look at the former Vice President s tax plan, theres a big hike could be on the horizon for wealthy americans and businesses. Its get so bad that one Financial Firm says theyre giving up on the sector. As we head to break, the biggest loser in the dow today were back in a couple minutes Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. A quick check on how we finished out the day, down sharply but off the lows, which was more than 4 3. 4 on the s p 500, and of course the perspective that we are up week to date 2. 4 on the s p 500. Its been lots of upanddowns alternating so far this week new details on the costs of joe bidens tax plan ylan mui is here with more. Hi, wilfred let me break it down 4 trillion. Thats the total size of the tax increases in bidens plan according to a new analysis from the tax policy center. 1. 3 trillion comes from raising the Corporate Tax rate on the individual side, the tax hikes would mainly hilt the wealthy. Capital gains would be taxed as ordinary income. The payroll, to the top 1 , it relates to an increase the 300,000 guys im not sure thats going to prevent him from getting wealthy donors, ylan. Thanks. If the alternative theyre looking at is boyce boss, i think joe biden is still preferable, but its important to remember he still wants to raise taxes on the wealthy it doesnt mean the wealthy would get a free pass. It just means some of the more aggressive proposals from boyce boyce wouldnt see the light of day. Traditionally theres always a bit of tacking to the center are tax plans when youve been so specific and given such clear numbers are them, are they usually included as well in terms of things that get warted down or not i think biden has left himself some room to do even more perhaps for example, the Tax Policy Centers analysis does not include Something Like a financial transaction tax, so we could see more details flushed out around that. Thats something i think would be considered more left of center and continue to be more aggressive if he sees that boyce boyce is playing better than him in the polls. Ylan mui, thank you thank you. Energy getting slammed again today, the etf falling nearsly 5 Brian Sullivan is leer with more on a day when opec actually took some action. Its a 1. 5 million barrel per day proposal russia will join opec plus well see if they can good et that done. Theres a big school of thought that opep has been tied at the help, may do what they need to do it anyway well see. The real yesterday is we fell get in oil today despite that, because the market wax something concrete out of opec tonal it might stabilize if we get out with no deal out of vienna and everybody goes home, everybody im talking to says oil could and will likely plunge tomorrow. We could see stocks and oil fall even more tomorrow whats interesting, guys, about the stocks, theyve got crushed. Here you go. The average return of one of the Six Companies operating in the balkan is 57 loss this year its march 5th, and these stocks have lost more than half their value on average i could look at my screen and finds stocks down 75 , 80 the market is say unless oil recovers or moves higher, some of these Companies Equity will likely go away pretty much everything is red on the screen as well and oil as a group are trading below where they were when the price of oil was at 25 a barrel so something is off, but everyone hates it, esg, high debt, you name it, no one likes it im starting to feel bad about myself every time i do an oil hit. Well, my sector is suffering, too. Not quite as badly as yours. Brother, mine is attached to yours, see you hold all the debt. When these companies cant pay the debt, your sector youre next were already on that path, that direction thank you, brian mike, just one followup question on this, clearly with the dollar coming down, with stimulus being announced china in particular, you would have expected oil to rebound a bit better. How about the fact theres an agreement from opec to cut 1. 5 billion barrels per day. Industrial metals have rebounded quite significantly, but oil just cant catch a break. The price and the consumption have gone down so much look at our travel stocks, what is that implies about demand even in this country china perhaps as bottomed in terms of activity, but the metals demand, things like that, it doesnt seem as if the supply cut is necessarily getting ahead of this issue. Even if opec convinces russia to go along with this graeme i think were getting into trading scold. Crude oil is still in the mid 40s. Still to come, were sees red across theaj mor indices well look at the keep economy indicators to follow, coming up. That will shape tomorrow and Building Workforce development and tuitionfree College Programs to generate the talent companies need. With a 150 billion investment in state of the art, modern infrastructure, and a nationleading commitment to lowcost clean energy, new york is doing more than any other state to build for the future of your business. New york state, the state of the future. Learn more at esd. Ny. Gov. New york state, the state of the future. phone ringing a phones offers big button,ecialized phones. And volumeenhanced phones. , get details on this state program. Call or visit and accessoriesphones for your mobile phone. Like this device to increase volume on your cell phone. phone ringing get details on this state program call or visit another day of selling on wall street, dow closing lower, 969 points lets go back to mike sanlt y for the last nautical theme dashboard of the day. Asking if the fied is set to turn we havent spent time talking about the macroeconomic numberings we are getting the jbs report tomorrow. But the labor market has been strong but the dynamics come in on forward looking trend. In orange here is continuing unemployment claims, not new claims so continuing basically, the number of people collecting uninsurance, its very low, just like unemployment in general so bumping along historically low levels the top chart here, the jolts, this is the number of job openings reported by businesses. And this obviously is rolled over dramatically. Looking at past cycles when it rolls over, the orange line comes up, right . Thats your prerecession indicator. The big question is what effect a lot of the measures related to coronvirus have, either temporarily or lastingly on the jobs market. I do think its something to watch, because it doesnt take much to get the wall street conversation back to how much is left in the tank for in expansion . And i do think this is the kind of thing well be watching, even though the labor market remains in a strong position. Would you have expected to see this show up in the job the weekly jobless claims number yet, the fact that companies are cancelling Business Travel and conferences. Not quite yet i almost wonder if next week would be the one where you saw it youre going to kind of cancel things before you lay people off. Todays numbers, you mentioned, the new claims was actually better than expected by a little bit. Mike, thanks for that still to come, the countdown is on the february jobs report due tomorrow morning what wall street expects when we come back. 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Obviously there almost was the perfect chain to actually catch most of the business not a surprise, tremendous doubledigit gain in comps for february but i think its always been a well managed company that could continue to show good growth in normal times so almost just an accelerant there. Looking to tomorrow, question get the february jobs report projected to show payroll increase 175,000 last month compared to january 225 report due out tomorrow morning hat 8 30. We havent talked about the jobs day tomorrow. Crazy. But, mike, could it be it was 3 million would it be possible we wouldnt see the rate cut in two weeks . I dont know that we have 3 Million People to find work. Im just saying to saras point is it irrelevant. Its really not relevant when you consider the survey week from which the report was drawn was in february. Its not a window on any of the impact we have had of in sort of slowdown in business restrictions and things like that so but, does give you help give you a snap shot where the economy was before we got into all this it was relatively sturdy. I was just going to say, on the data points coming in, ignored by wall street, but had been mostly pretty strong. The ism, nonmanufacturing. What kind of footing we are coming from, the because the downside could be so bad. I think it matters. It shows you maybe we are in a somewhat less fragile position than than we might otherwise have been. Therefore you can withstand a little more. But ultimately its not going to determine exactly how the economy bumps along from. Seems like the investors and the fed are watching the virus numbers. Exactly. And not so much the jobs numbers. Watching virus numbers and not Financial Stress the stock market down a lot is one thing. Credit markets squirrely. Mike remind us ever the key level to watch tomorrow and the fact its a friday not to break below. In general last fridays low was 285 a on the s p its about what 5 down from here i think you could go on the premise that that might be the low for the shortterm but it has to prove its the case. And fridays are not great. They substitute havent been good all year. We are out of time. Dont forget to watch the special tonight 7 00 p. M thanks for watching closing bell. Fast money starts right now. The clocks dont agree another big selloff rocking wall street, fierce of economic slowdown sending stocks spiraling, the dow dropping 970 point for a loss of 3. 6 every s p 500 sector finished deep in the red. And more incredibly the move in bonds. The 10year yield at one point hitting 0. 899 remember, it was 3 two years ago. The drop leaving many investors on edged edge that the bond market may be predicting