Transcripts For CNBC Closing Bell 20240713

Governments around the world pump cash into the Financial System the president promised a large stimulus package, including direct payments to every american and boeing and u. S. Airlines, a Financial Aid package for billions of dollars as the treasury secretary called the situation worse than 9 11. Steve liesman has the latest from the fed Kayla Tausche is tracking the fed response from washington much more from her as you just heard. Lets start with you, mike, on the key market levels. We just bounced off a key market level, wilf s p 500. We closed yesterday about 1 above that december 2018 closing low about 2351 we spent very little time under the 2500 level now what this is, i would call it a very modest bounce, given the destruction that we saw in recent days. I think you can make the can case between thursday to monday you had a multistage capitulation process we should be bouncing on a tuesday after a washout monday right now looks okay but not so decisive were down 30 from the highs. This is the 2000 to 2002, if you want to call it 2003, bear market when did we get to a 30 loss . Right here, right after 9 11 rally attempts, retest, further low and then a decline from that point on, you were kind of even in a little over a year if you bought the down 30 number look at 2008 actually a littlemore than a year 2008, you were even at not too long roughly down 30 area right there. Obviously further declines down into march my point is, even if youre going to go down 50 high to low, which is a pretty bearish case right now, the market eventually bails you out but often its pretty much a really treacherous several months after that just a little perspective on if, in fact, this will be a rerun of those really bad bear markets. I guess a key swing factor for those comparisons is how long and steep were the fundamental earnings declines and with it, of course, economic declines that are associated with those market pullbacks at 30 . Absolutely. And massive exacerbating factors in both cases. Probably the highest valuations to start with ever in 2000 had to be worked off in the tech sector, corporate scandals, 9 11, lot of things piled on and, of course, the Global Financial crisis so all those things will have to work together. Right now, we have a bear market that looks like a very sudden shock, more like a crash than it does one of those grinding bears. Thank you for that. See you shortly. The fed took another series of extreme measures to help stabilize markets. Steve liesman joins us with the latest hey, steve. Hey, wilf this was long anticipated really called for by Market Participants this one concerns the commercial paper market, which is where companies go to fund shortterm liabilities and go in and get working cash, really, for all kinds of things, very essential for the working of the Financial System, for the workings of businesses, even for households as well. So, what happened is they launch this had paper funding facility, very similar to what they did in 2008 in this case a little different. The treasury is providing a 10 billion backstop to the fed. Hold on to that thought. Well come back to it in a second im told this could be up to 700 billion in commercial paper financed at this facility. Now, reviews in the market have been mixed ive been on the phone all afternoon, since this facility came out this morning, with different guys, different folks in this market i want to read you some of the reviews were getting. One Senior Market participant said its too punitive right now. Nobody is going to use it. The commercial paper market is still not functioning well what he means by punitive is the rate the fed is charging for these loans is above where the market is right now. Theyre looking for the fed to adjust that. Indeed, another Market Participant i talked to had another idea saying the fed is doing the best job it can, given how quickly circumstances have changed. Two weeks ago, nobody was talking about the kind of numbers or declines we just saw bob pisani and mike santoli show on the screen there and how quickly the Economic Situation has changed. This person believes the fed could eventually adjust things and also thinks that the market will come around to it finally, evercore, this is a necessary step to stabilize shortterm corporate and Financial Funding markets but goes on to say the structure of the new cpff makes it look as if the fed is being more conservative in its own Risk Management than it was in 2008 well see, guys, if the fed adjusts this, if it has a positive effect. To me it looks to be kind of neutral. I didnt hear any improvement in that market. The other things the fed is doing has nudged some things a little closer, but theyre still very wide in terms of the spread of where they should be trading relative to normal times wilf steve, thats interesting im going to add a bit more color as well, speaking to executives, Market Participants myself. Sure. Starting with a top highlevel Bank Executive that i spoke to in the last half hour ill address, first of all, that other story, steve, we were talking about earlier, that the banks decided to access the feds discount window, another source of lk which hadity. This senior Bank Executive said not all banks wanted to do that initially mainly because of the political backlash of it being framed as a bailout. But the fed pushing the group to do sos with a game changer and things moved pretty quickly on that front yesterday. This wasnt part of the buyback announcement over the weekend. It was a yesterday afternoon to evening decision now, also, just to address what this bank exec said in terms of the feds actions today, the fed is really listening and moving quickly as you alluded to, as well, steve, that theyve taken the action that was needed and addressed the plumbing in the paper market, all of which is encouraging. That said, steve, i also spoke to the head of trading at one of the Top Investment banks here in new york, and they said thats meant markets are functioning better but only a smidgie i smi better, those were his words, but commercial paper itself is not yet. One final he mentioned is that as banks continue to lean into work from home policies, that is adding to these liquidity pressures because, as he said it, the beehive of activity, its making these liquidity issues worse. Wichlf, let me back up and tl viewers why we do this the way we do this the way we cover stock market where you can show a decline like that. There arent really good graphs. When they get gummed up as they are, theres no pricing out there. Your reporting, my reporting or the way we report this story not in the charts and graphs that can show you very obviously whats going on, i could show you a graph, by the way, of a huge decline in prime money market funds or the assets in them first of all, what you said to the discount window sounds a lot like what happened in 2008 where they brought everybody in. I guess it was 09 they said you will take this money to the tarp even though others didnt want it, it was an offer they couldnt refuse because of the optics of it. They want to show everybody going because if one doesnt go or two dont go, the others look weak and then your report something backing up mine that so far theres only been a nudge. You said a smidge. I use a nudge in these markets someone told me that the fed will have to come in and make purchases in a bigger way than its done already. Steve, well keep our eye out for that thank you very much for the latest there dont miss, by the way, my interview coming up with the truest ceo kelly king. Great time to check in with him about whats going on in the u. S. Banking markets weve got breaking news on europe sue herera has it for us. I do, indeed, wilf, specifically the european union, meeting with by Video Conference today. Eu leaders have agreed theyve talked about it two days and have taken a vote, to close europes external borders. You can move about inside the eu however, they are closing the external borders, so no one else can come in that is not an eu member state so, they are going to meet again next week, reassess the situation and decide whether they need to take further measures but eu leaders have agreed to close europes external borders in an effort to control the coronavirus. Wilf, back downtown to you. Hugely significant moment. Yes. For the eu. Free movement of people such a core principle of the eu but an understandable move amidst this crisis thank you for that. Lets go back to washington. Weed with steve about what the fed is doing to address the issues Kayla Tausche has the latest what the lawmakers are looking at. Reporter senate will have a vote on the second phase of Coronavirus Relief that, 105 billion paid suck leave passage that the house passed last week. Mitch mcconnell says the senate will not leave town until that is passed and the treasury secretary reportedly in that lunch behind closed doors says he wants to see that bill passed as is and any fixes made to it can be handled after that. Then theyll move on to the industry relief package. Secretary treasury says this is a trillion dollar stimulus into the economy on top of irs payments that will not be required, that will be deferred. Mcconnell says its too early to say whether he supports all elements of that package, but it is certainly a bazooka, roughly 500 to 550 billion in direct payments and or a payroll tax cut or some hybrid of both of these between 200 and 300 billion in Business Assistance and 500 billion in direct industry liquidity im told by a Senior Administration official those numbers are moving targets, that this is still a negotiation, but certainly it is a sign from the administration that they are not going to mince any of these numbers here when it comes to helping the economy and to that end the treasury secretary said its not time to worry about deficits either. Finally, one other thing ive learned that treasury is setting up to try to help the american economy, and that is a Loan Guarantee program, similar to what was called talf the technicals of it will be different this time around but the idea is the same, to provide Loan Guarantees so if a company cannot pay back its loan, if the bank gives a company a bridge loan for the next year or two years and the company cant pay it back, treasury would essentially provide a Loan Guarantee for that in the financial crisis, that program was 200 billion only 70 billion will be used. We still dont know the exact details of what treasury is looking at this time around. Guys kayla, thank you very much for that 48 minutes left of this session, higher 565 points on the dow krogers ceo will tell us how his company is dealing with the outbreak and the steps theyre taking to protect workers. After the break, well speak with the ceo of Deutsche Bank americas during these unprecedented times. 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We all have to recognize, you know, that the origins of this crisis are very different. What we dealt with in 2008 started with the banks banks were undercapitalized with insufficiently robust liquidity. Here in 2020, were dealing with a tragic Public Health crisis thats sending shocks into the economy. The banks are in a much better position here thanks to postcrisis regulation, and were not seeing anywhere near the disruption we did back 12 years ago. Weve seen the ecb take serious measures to inject liquidity in europe as well. Have they had enough of an effect yet for europes Banking System look, again, all of this is helping. I think what we were encouraged by most around the actions and reaction of the European Central bank last week most certainly was the decision to not dip deeper into negative territory if thats some reason to find optimism in Current Situation i would like to see that as a bit of an Inflection Point as effectiveness on that negative rate policy and continued policy of cutting rates the last six years. We see that also as a lesson to the fed in Current Situations as well, to support the stability of the Banking Sector and not go into the temptation to dip into negative territory. Christiana, we heard from ang Angela Merkel that the eu is shutting its external borders. What will be the hit to the eurozone economy its a deeply symbolic step and across global institutions such as Deutsche Bank. What were seeing here now is quite literally the pulling up of the draw bridges across the continents and now even within the continent of europe. Thats no doubt going to have some severe macroeconomic consequences for us. Last week we were talking about a v shape recovery, we are no doubt talking about a ushaped recovery now and the question is, how deep is that u, the answer to that is how aggressive, how decisive is the fiscal response . We heard mnuchin encouraging, reflecting on the continental response germans do have a big responsibility to lead here and all of the ingredients to be able to do so. Were talking about looking at the german fiscal situation budget surpluses in the past several years, not to mention negative wounds. All the dry powder is there for the German Government to be stepping in and to avoid this becoming a deepershaped u. Christiana riley, thank you so much for joining me. Thank you for having me. We have about 41 minutes left until the close. As things stand, 750 points on the dow in percentage terms, we are higher by 4. 6 , little off the highs, certainly off the lows well speak with pfizers chief scientific officer next. Plus, secretary mnuchin says the Current Situation for the airlines is the worst since 9 11, even worse than that ngsa tovernment intervention sbr ves vehe sector . Top analysts will join us later. We see engineers simulating the future to improve today. At emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. 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. But shouldnt somebody this is be listening . Pression. So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. Welcome back 38 minutes left. Were up by 4 on the s p. Pharma giant pfizer announcing an agreement with biontech to produce and distribute a coronavirus vaccine. Mikael dolsten joins us with our own meg tirrell. Back over to you. Thank you for joining us by phone. Tell us about this partnership and the time lines youre looking to start human Clinical Trials. Thank you we are very pleased that we can extend our Great Partnership with biontech under these difficult times to rapidly, as a team, move forward to develop covid19 vaccine and the timeline is very aggressive we hope within weeks to start dosing patients in u. S. , germany and china. Wow, that is very fast. And, of course, we know mederna working with the nih, is using a similar messenger Rna Technology the first patient was dosed yesterday. I understand theyre concurrently running animal tests as they start that its not the usual stepbystep process. Is that what youre doing as well, to have that expedited timeline we have been a partner of biontech since two years ago, to disrupt the way you do flu vaccines, to get them better, more precise as we got to know more about covid19 getting up to code and its behavior on how we could possibly join up here and biontech had already done some activities that made it possible for us to plan this aggressive timelines. And we will certainly do things in parallel, but we are just weeks away from starting dosing. And i think whats unique here is that you bring together one of the proven vaccine leaders of the world, pfizer, that has capability to scale up to hundreds of millions across the globe and biontech is one of the leaders in the rna space that supplements what nih are doing and hopefully gives patients and American People more options and probability that we will come out successful. Give us a timeline of the potential vaccine being ready if all goes well. Youre screening antiviral compounds, too which one could potentially be ready faster thank you for a great question there i think they serve different needs. The vaccine is to deal with that in the end we need to get this type of coronavirus out of our Public Health population so, it is to treat the many, many millions of individuals that are at risk or can be exposed to the virus in the population and protect us from coronavirus coming back or not disappearing in our country. So while the studies may start in weeks, i think our strategy involves in parallel showed that the virus is the vaccine is raising effective immune responses in patients and that we will supplement that with possible animal efficacy and with regulatory industry how we can bring our experiences from nonclinical to clinical and in an unprecedented timeline. These are, unfortunately, an unprecedented time and i want just to say, look, our ceo recently laid out a fivepoint plan, how we need to come together between pharmaceutical, biontech and that has propelled us in this endeavor and a lot of our labs have joined us, many coming from the network, moving very fast here finally, i wanted to say were speaking about a few months there. Thats focused on treating patients. That makes sense, dr. Dolsten. We would love to stay intouch with you as these developments come historically quickly in some cases thank you so much for being with us. Thank you for the privilege have a good day. You, too. Wilf, back over to you. Thank you thanks to Mikael Dolsten weve got breaking news on the fed. Steve . The new york fed announcing what it has been doing the past two days, which is doing two overnight repo operations, each offering 500 billion, it will now do for the rest of the week. So, it will do a morning operation of 500 billion, offering out repo in the morning for 500 billion and then again in the afternoon i will tell you, i went back and looked at the results for the last two it did 142 billion this morning and they took up 129 billion yesterday. The afternoon, not quite so much im not precisely sure what the fed is trying to overcome here in terms of making this second offer available. The key, as ive said several times, wilf, on these operations at 500 billion, its not that its that amount or some number, its infinity liquidity. If you have a piece of paper that you need financed overnight, treasury or agencymortgaged back security, 500 billion is the number the fed sets because it thinks its above anything that the market may ask. Now its coming in and saying we will make infinity liquidity available in the morning for the overnight and well make it available in the afternoon theres been some takeup in the afternoon. Well see if this helps with whats going on in the market functioning out there where some of the securities have had trouble finding funding overnight. Wilf either way, steve, clearly the need for the persistence of these offers from the fed is a little bit of a concern. We can bring up the tenyear treasury note intraday. You can see that yield rising quite significantly through the course of the last several hours. Just pointing to that thing we discussed earlier, steve, that theyve done everything they can, pretty much everything they can so far and its not solved the full aspect of the plumbing in treasuries and the yield there again rising significantly as we just showed. I think thats important, wilf i think you make a good point. I talked to someone in the treasury market who said part of the rise in the yield is because of the commentary from all the fiscal side about how much fiscal stimulus is coming, that now theyre anticipating a greater amount of stimulus this has really steepened the curve out there. But also youre right, this could be the result of some of the internal strains in the market why yields are rising right now. Well have an expert with us, kelly king, in a moment. Steve liesman, thank you first, time for a coronavirus update with sue herera. Hello, wilf hello, everyone. New york city mayor is telling residents to prepare for the possibility of a shelter in place order to slow the spread of the coronavirus he says a decision will likely come in the next 48 hours. New york city will join six counties in the San Francisco area that are already under a shelter in place directive Facebook Says it will award 100 million in cash grants and ad credits to up to 30,000 Small Businesses around the world to help deal with losses from the virus. Facebook is also helping out its employees with an extra thousand dollars added to its next paycheck they are also giving all of its 45,000 workers good reviews for the first half of the year to ensure they receive their bonuses. Dollar general joining a growing list of businesses that give priority to older customers during the first hour while open the socalled senior hours are an attempt to decrease their exposure you can get more information on the coronavirus. Head to cnbc. Com wilf, back downtown to you. Sue, thank you for that we are up 634 points on the dow. Up next, the ceo of truist, who was at the white house last week to discuss the economic fallout with President Trump, will join us live. Well get his take on how the Financial System is holding up and the latest fed moves. And later, Governor Phil Murphy will be joining us to discuss how his state is battling the pandemic. We are back in a couple of minutes. janine i used to be a little cranky. Dealing with our finances really haunted me. Thankfully, i got quickbooks, and a live bookkeepers helping customize it for our business. live bookkeeper youre all set up janine great vo get set up right with a live bookkeeper with intuit quickbooks. We sunleashing the promisegas of clean energy. At emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Welcome back to the closing bell 25 minutes left in the session s p currently up 4. 5 , improving again in the last 20 minutes or so utilities killing the rest of the sectors today, up 11 , well ahead. Staples second defensive turn to the top two sectors, energy the only sector in the red oil, of course, continues to plunge down 6 today wti at 27 lets have a look at whats driving the action the fed launching more massive liquidity as governments around the world pump cash into the Financial System the president promising a large stimulus package to buttress the economy, including direct payments to every american, boeing and u. S. Airlines asking for Financial Aid and billions of dollars as the industry faces a situation the secretary treasury called worse than 9 11. The fed announced it will do two 500 billion repoe operations each day this week, part of their ongoing liquidity. Kelly king, chairman and ceo of truist thanks for joining me. Thanks for having me. Good to see you. Another action weve seen in the last 24 hours to help liquidity in the Banking System was announced via the Financial Service services that your peers are tapping the fed window are you doing the same not at this point, wilfred. Weve not been asked to tap the window in terms of supporting the system. Is it a sign of weakness that some of the other banks have done so . Absolutely not. No i think this was simply a measure on the part of the fed to make sure the system is working in case it were to become necessary im fairly positive in saying none of those institutions had any need for that, but it was reasonable probably to ask them, the very largest institutions, to access the system just to make sure all the mechanics were working all right. So, kelly, clearly, everyone is asking the question, how much pressure are companies and consumers facing and are they meeting their various Interest Payments on the debts and loans they have . What can you tell us on that front and what are you doing to help them . Well, i think its really interesting. You know, until a couple of weeks ago, to be honest, most businesses that we deal with have been doing very well. Thats the thing thats interesting about where we are people were worried about what was happening globally in terms of trade wars and so forth the coronavirus has gotten here very close to home everybody is very concerned. Everybody is worried Small Businesses get impacted the most by this you know, we hear a lot about the 500 billion commercial paper activities of the fed. And thats really important. But the Small Businesses on main street will suffer the fastest and the most what were trying to do is work very closely we are the Financial Partner for hundreds of thousands of those clients and we are doing everything we can in terms of extending terms for those clients, working with them in terms of their financial plans, making adjustments, reducing Interest Rates were being very aggressive in terms of helping them get through this, so they can survive and thrive on the other side. What about, kelly, for someone who is not necessarily a client already, being at an airline or oil company, for examp example, what do you need to see from the government in terms of guarantee, for example, to extend a loan that you wouldnt otherwise do to those sorts of companies . You know, from a longterm point of view we need to be careful about Government Intervention in terms of Business Environment having said that, though, we know that there are Critical Infrastructure industries, such as Airline Industry, the Energy Industry that when there is a huge Business Interruption and we are at the risk of putting our own countrys National Security and Overall Economic vie tality at risk, it is reasonable for the government to intervene. And so stepping in with government guarantees, hopefully shortterm in nature, or direct funding for some of these industries, makes sense. The key is that its very contained, specific and shortterm in terms of its life. We do not want these companies funded by the federal government for a longterm point of view. Very quickly, kelly, have there been any upticks in volumes in any subsectors, like mortgages, for example yeah, mortgages are off the chart. There is a good thing. You know, theres always bright in everything. So, you know, millions of clients are able to finance or refinance their mortgages. Sometimes, maybe for the third or fourth time rates are really, really low our volumes have quadrupled in the last two or three months were adding capacity to be able to do more mortgages thats very, very good we are seeing clients that are, you know, taking other opportunities to invest because of these lower Interest Rates. Were actually seeing deposits flow into our company. Were very strong, very conservative type of company we see a lot of deposits flowing in we are seeing additional borrowing activity, some Larger Companies are drawing down lines, Smaller Companies are asking for, you know, concessions in terms of the long term theres much more activity today than i would say there has been the whole year, just in the last few weeks. Kelly king, ceo of truist, thank you so much for joining me just then. Thanks. Have a great day. Truist, of course, the sixth biggest bank of the nation lets get over to mike santoli for the market dashboard. Hey, wilf liquidity parts of the bond market, one that never sees drama, rarely. Big Municipal Bond etf look how this fell right off the table in recent days this is a sign of stress normally this would be arbitraged very well now take a look at the way that this etf is trading relative to its Net Asset Value and you also see over the last year its really strayed from its underlying midasset value it always sticks right there a 3 discount. It has come back today two ways to look at this, the fed is active in various parts of the market because normal liquidity is not there to create arbitrage functions and two, if you dont think state and municipal finances are going to fall apart, you are getting extra yield because of the flight from etf holders, wilf. Mike, thanks for that something to keep an eye on, italy and france in particular the last couple of days thnchts is the last commercial well take until we head into the close. Well bryoing u uninterrupted coverage of trade when we go into the market zone your hosting abilities . Its like getting a Samsung Galaxy s20 5g, and not getting it with at t. Americas best network. Bingo no, you cant have bingo. I just called out two numbers. You do this every week get the most from your revolutionary Samsung Galaxy s20 5g. Switch now and get one for 10 a month from at t. Building 5g on americas best network. But when allergies and congestion strike, take allegrad. A nondrowsy antihistamine plus a powerful decongestant. So you can always say yes to putting your true colors on display. Say yes to allegrad. To putting your true colors on display. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. 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Get e trades simplified technical analysis. Just under 14 minutes left in the trading day were now in the closing bell market zone, commercialfree coverage of all the action heading into the close mike santoli, nancy tegler from tegler investments the dow, as we stand is up 960 points thats 4. 7 . S p percentage terms up 5. 7 nasdaq up 6 weve had a nice bit of momentum in the final hour of the trade to the upside. High for the day of the dow was close to 1200. Mike santoli, an encouraging bounceback as we approach the close but significant stimulus measures announced throughout the day where you would expect, therefore, a big bounceback, given yesterdays declines. The setup was there for a big bounce you could easily make the case that the market even more wash ed out after yesterdays decline. I think its at least good that weve responded in this way, both to the very oversold conditions in the very short term but also the signs that policymakers are trying to create these offsets to the economic weakness. It does seem as though theres one step in the direction of trying to have more of a twoway market as opposed to this huge liquidation spiral weve been in. Nancy, what factors do you look out for to help decide whether its worth dipping your toe back into the market wilf, thank you we have been dipping in. We bought earlier today, some things on thursday or friday of last week. Im looking at two things. One is the breadth of the decline and the number of stocks that are off by over 20 so, that number is dropped from 90 to 75 thats somewhat encouraging. Just looking back at historical periods, theres been eight. This is a number from strategis. If you look at that, the one we think is the most analagous is 1987 and that was the worst, down 36 from august to october. So, you know, were down 26 through yesterday. We think were getting near a bottom just based on the way the stock prices are moving on earnings and also just in general, the liquidity has been pretty good for us. Weve got 11 minutes left of the session, s p up 5. 5 boeing is in talk with the Trump Administration about potential government aid and u. S. Airlines confirmed theyre seeking a 50 billion aid package. Treasury secretary Steven Mnuchin defending that earlier today, calling the slowdown worse than 9 11. Jamie baker joins us on the phone, Senior Airline analyst at jp morgan. Jamie, thanks so much for joining me i guess first question is, do these Airlines Need some form of bailout to stop them from going bust wilf, thanks for having me on had you asked me three weeks ago if we might ban healthy europeans from entering the country i would have asked you to stop wasting my time. Clearly, we are at a point where there are no stupid questions as it relates, you know, to airlines here. You know, paradoxically, shutting the air space could possibly be a good thing came along with some sort of federal assistance the irony is not lost on me that a 50 billion package is now being discussed, which is roughly equal, within a couple of billion dollars, to what the airlines paid over the past five years in dividends and buybacks. Clearly there will need to be structural change but yes the government itself sim posing some of the strain on the Airline Industry and therefore, i think, it should be a source of capital, along with other traditional providers of capital. Clearly, theyve all sold off massively from their peaks which of those do you think is overdone, whether thats because they wont need a bailout or because theyll benefit the most from whatever structure might be thought up by the government that will depend on your view as to viral recovery if these global containment efforts work and covid19 begins to burn out in the next couple of months, we will be in a second half recovery environment and the risk reward looks highly attractive across my entire north American Space if you believe it honestly becomes a war of attrition, given a prolonged economic downturn, delta and southwest are the franchises we consider to be the strongest in the northwest. Hem and haw best picks but the answer will depend what individual investors believe as it relates to health recovery. Jamie, what about the longterm hits, even through the current challenges, does that demonstrate peoples willingness to travel and fly in the long term maybe they benefited from doing things remotely and realized they dont need to travel as much. Look, whether businesses learn to live with less travel, i wouldnt say thats a good question but its a common question it was asked after 9 11. It was asked after sars, after the great recession. In fact, it was asked back when fullsized toiletries were banned i remember reading articles that female business travelers would have to drop out of the workforce because they wouldnt be able to travel with fullsized items in fact, in 09 we saw corporate flyers making up for lost time by actually traveling more on the consumer side, you know, you have units that are now spending eight to 12 more hours together than they are accustomed to. Once the allclear is sounded, i think people will want to get out of their homes and go somewhere and the airlines will be ready for that. Just finally, jamie, it doesnt sound like you think there will be significant bankruptcies in the u. S. What about internationally do you think European Airlines are seriously under threat at the moment yeah. Well here is an Interesting Data point. North america generates about 20 of global flight activity, okay were a fifth of the market. We generate twothirds of global profitability. So, like the actual virus, the decline in passenger demand for air travel, its going to ravish the weak and infirmed. That doesnt immunize our airlines, far from it, but its an important distinction yes, when we talk about longer term structural change, you know, i do think there will be Airline Failures in Certain International markets that are ones that we fly to. Theres a scenario where american, delta, air canada emerge with Higher International margins than what they had previrus because theyll be facing less competition. Jamie baker, thank you so much for joining me from jp morgan confused my analysts there my apologies breaking news out of vegas sands. Hi there, wilf. Vegas sands temporarily closing the venetian and palazzo resorts until at least april 1st the company saying that it is committed to paying its team members through this time and while the buildings are closed that no layoffs or furloughs are being contemplated and it will not Impact Health Care Coverage for these employees, donating a total of 250,000 to several local organizations to serve the community during this time of need now looking forward, the company says a decision on whether to extend the closure or reopen will be made at a later date they say the process of closing these properties will begin immediately and be completed as soon as possible so again Las Vegas Sands saying they are temporarily closing its venetian resorts until at least april 1st. Thanks so much for that relevant, of course, to that story, ceos in the Hotel Industry just met with President Trump and seema mody has the details for us. Meeting with President Trump at the white house today to express their concerns surrounding coronavirus and the impact its had on their bottom line saying i have been in this business for 35 years and ive never seen anything like it. He said hilton is experiencing 15 occupancy. Separately, marriott ceo says they are losing business every day. Those comments come after the Hotel Operator says it expects to if you evefurlough tens of to employees. With with less of a need for hotels thats being reflected with marriott down another 20 , excuse me now down 12 today it was down as much as 20 certainly a sector to watch here wilfred, back to you. Thank you, seema, for that. Macys announcing a few hours ago it will be temporarily Closing Stores nationwide because of the coronavirus and Courtney Reagan has the details for us. Macys just the latest in the evergrowing list of retailers Closing Stores, bloomingdales blue mercury and more, all those macys stores that are operated, about 775, will be closed through the end of the month by moi count over 80 brands announcing closures, big names like nike. Those ones only have a handful of stores. Specialty players still have big footprints 26 footlocker locations are closed, more than 1200 childrens place by my count all together weve got more than 24,000 stores in the u. S. That are closed and i actually think thats a conservative number. Theres more when you add in the stores that are being closed in canada and europe as well. So, well see what happens it does seem like the consumer is hunkering down and the stores are following suit by closing up back over to you. Courtney, thank you very much for that nancy, you mentioned you bought some stocks today and late last week any retailers in there yes, actually, wilf we initiated a position in tj max, which i think is one of the few stocks that will actually come out of this stronger. We own home depot, walmart, sold costco on valuation and replaced it or are beginning to replace it with tjx. Just to mention with 2 30 left on trade, higher s p 500, all sectors are higher, very clearly led by defense and staples utilities up a massive 13 . All sectors are higher that does it for me. Sara will take you through the next hour of closing bell. Lets get to mike on the market internals as we approach the close. Relatively positive but have lagged the relative gains in the index. Look at the New York Stock Exchange up versus down volume weve had multiple down 90 days this is really like versus declining volume not that decisive, even though the indexes are having a decent bounce take a look at housing itp Home Builders over the last few days have really is yo surrendered, clearly the most discretionary purchase arguably, a new home despite the fact that Mortgage Rates are very low did want to point out the volatility index receding a bit. Record highs over 80 yesterday still not decisively showing that the fever has broken but it definitely is better to see it going down than up we also have the forward vix, futures contracts very elevated. Lets get up to the nasdaq with bertha hi, bertha. Hi. Thank you very much, mike. Nasdaq wiping out nearly half of the gains, coming off a new low. And were seeing that particularly in some of the largemovement stocks in the chip sector, up today 8 , still very much down for the week. A lot of those hitting new lows this morning maxim is off 25 from highs. The web Meeting Companies continue to surge. Citrix up and treatment and vaccinerelated companies also high over to bob. Feels very tentative. We had a rally today that actually held s p 500 at a nearly 180point range, about 1500 points than the dow still extraordinary range. As mike mentioned, the vix is flattening out dow inc. , Global Packaging company that works all over the world. After being down 35 has stabilized in the last four days some hopes were look at a bottom at least in dow inc were not at the highs of the day but just off them. Dow jones industrial average up over 1,000 point, s p up over 142. Welcome back, everyone, to closing bell, 1,000 points higher on the dow. Im sara eisen with mike santoli. Day for rebound on wall street, making up some of the lost ground after yesterday, the worst day for stocks since 1987. This is how we shaped up dow closing higher by more than 5 , 6 gain for the s p 500. 6. 23 for the nasdaq and the best performer of the day, russell 2000, up 6. 5 . 13 down on the dow yesterday, 12 for the s p. We are waiting numbers this hour from fedex well bring you those as soon as we get them, see if we can glean anything from whats happening in the Global Economy right now. Joining us to talk about the market today, by phone, from Merrill Lynch and still with us, Nancy Tengler from laflor tengler. Just another crazy wild swing day, mike. It was, sara. You can walk away from it and say okay, its an acceptable bounce after such a washout that weve had in recent days gained backless little less than half of what we lost yesterday in the s p 500 you have to approach these phases of a decline with kind of parallel tracks of thinking. One is market is down tremendously, 30 in less than a month. When the market is down 30 , it becomes less risky in a longterm basis. We definitely seemed like we saw some fear and panic. The rest of the Financial Markets are not operating smoothly or in a way that encouraging additional risk taking i think you have to balance those things against one another when you evaluate whether weve seen some kind of low from this waterfall decline phase of this period. Nancy, i know youve been talking us through the close here give us a refresher on what you did today. We were in buying we were buying, sara, adding to our software hold iings, microsoft, sales force, palo alto, splunk last week. This week we added retailers and a few growth but defensive names like comcast we had hedged our client portfolios in early february on the down days weve been selling the options. To mikes point its really going to be difficult to buy puts against the p schlt py or any other chosen investment because the volatility is so high and the options are so expensive now. We made a lot of money on them offset a little bit what happened in our portfolios but when theres a selloff like this, they sell everything they can and that means even highquality companies. So, your notes today say best opportunity to pick stocks may be ever. Explain what you mean. It still feels very uncertain as to whats going to happen to the economy as a result of this spreading virus. Absolutely right. Whats interesting is if you look at the selloff weve seen the last few weeks, its been different than prior selloffs in that every stock has behaved very similarly so, weve seen the lowest idiosyncratic risk than we have any other selloff after the crisis what that means in english is that stocks arent being treated like stocks. Its not like you look at a Staples Company and think okay, this is going to do better you look at one company and think it will do better than another food company but everything is just going down in one, big, correlated wave. I think what thats creating is what nancy just discussed, which is opportunities to buy high quality, safe dividend yielding stocks at much, much more attractive levels. Which i think is important the yield story is important one thing we looked at is Dividend Growth stocks that would be more of the software and the tech companies. And Dividend Growth companies are still incredibly inexpensive relative to their higher end counterparts most of these companies are paying lower payout ratios whats interesting is that stocks are moving. The calm movement between stocks is higher than its been in previous selloff. If you think about the travel ban, the coronavirus, the implications over the next six months to a year, this is there are stocks that are going to benefit and stocks that are going to be hit. And stocks shouldnt all be behaving the same right now if that makes sense. Sure. Mike, we did see a little bit of bifurcation today. Energy was flat. We did start to see some groups moving in Different Directions and overall with a defensive tilt, even with the rally. I was going to say it was definitely bifurcation some defensive groups as you say. Ironically perhaps some of the yieldoriented areas were getting a bit at a time when we saw this tremendous pickup in yield in treasuries today. I do think that it has been somewhat indiscriminate to everything in the consumer area and cyclical basis has been laid waste. As you try to discern whether were coming out of the kind of sheer derisking, deleveraging type panic phase, you want to see more activity happening, surfacing in individual stocks. The news flow was quite heavy today. We got word that President Trump is trying to pass a massive stimulus treasury secretary talking about getting cash to americans right now. The Federal Reserve stepping in again. Yep. To shore up the shortterm funding market for corporations. Does all of these things give you confidence to a certain extent i think this crisis is unlike prior cires. Were not just by the fed and even so much. Barometer you want to watch. This is what worked in china, deceleration in the number of cases reported this is a different crisis i mean, i think that the barometers weve used in prior bear markets like credit spreads and oil prices and all of that are irrelevant fiscal stimulus is relevant but it might not be the full bailout that we need i think we need to see Health Care Policy response and most importantly sort of a containment and deceleration in the number of announced cases. Were really looking to italy to see how that resolves. I think thats a good example or case study of a country similar to the u. S. That is implekting aggressive policy right now. Lets just see if it works i think thats what were watching to signal an allclear. Crossing below at your screen youll see the fedex numbers, withdrawing guidance lets get to frank with more with numbers trading up. Frank . After the Company Reported eps in line. The company also pulled its fiscal year 2020 guidance in this q3 earnings report. Fred smith adding we continue to deliver for our customers and are ready to support increased demand for International Express export service due to intercontinental air capacity. Global rates have been on the rise, fedex is the biggest air carrier. Back to you. Muchneeded relief perhaps for fedex. Its hard to tell what were going to get out of these companies. I was going to say virtually impossible nobody has any visibility, several months are going to play out from here. Although fedex is the kind of name and some transports are like this, where they are so weak, so long before the coronavirus scare that the stock was trading at levels it first reads more than 15 years ago a lot of hope and growth expectations have been bled away obviously dont know if this afterhours move will stick. It does show you that there has been this whole segment of global cyclicals where theyve been abandoned even before the latest shock. Down 47 for the past 12 months lets get to bob pisani. Bob . It felt rather tentative. Look at the dow in the 1500point range the rally held because we had plenty of news on stimulus stimulus is the primary mover of the market other than any positive news reports on coronavirus treatments here. Nice to see the banks generally doing better jp morgan has not outperformed in a long time 7 today s p up 5 had . 6 there for jp morgan once again, outside gains for the big consumer names out there. Hormel, for example, one of many, new highs in General Mills and clorox as well after a horrible few days some of the retailers bounced back we noticed how horrible Urban Outfitters have been, for example. 11 . Dillards, tj maxx, best buy ralliied as well. Arent they going to help boeing it will be massive assistance. Why didnt it move up a little more people are concerned about the spirit of 2008 when we saw a lot of companies out there not benefit when they were bail approximated out by the government guys, back to you. Bob pisani, thank you savita, ill give you the final word advice to investors, what is this going to look like and how long is it going to last yeah. I think the name of the game right now is pick stocks look for companies with fortress dividends. Right now and the foreseeable future is safe income. The feds have slashed rates to zero were in an environment thats like a yieldstarved world the idea of picking up safe Dividend Yielding Companies at bargain prices makes a lot of sense to me. Savita, dont you have to be caref careful, though . In some places how safe are those dividends . Look at oil, look at financials. Are you sure theyre safe . Here is how you pick it low payout ratio, stable earnings and companies that have very low leverage ratios, companies that have limited risk in terms of cutting their dividends, wiggle room in case their earnings go down and dont have a lot of consistent demands on their capital thats going to take away from their dividend in case of a credit shock. Savita subramanian, thank you for joining us, nancy trengler, to you as well hologics ceo joins us to talk about getting more tests to those who need them. Well be back in 90 seconds. Got it. Servicenow the smarter way to workflow. Biotech names. Potential covid19 drug by early summer meg tirrell . Thats about two months faster it is encouraging news, company saying theyve isolated hundreds of antibodies that neutralize the coronavirus, now sorting through those antibodies as well as antibodies derived from people who recovered from covid19 to combine the two to make the best cocktail the medicine could be unique in that it could both prevent the infection and treat it but it still needs to go through Clinical Trials to prove its safe and effective and that will take several months. Many experts point out regeneron has done this in an outbreak scenario for ebola in the democratic republic of congo to save lives back to you. Meg, thank you. Another Company Joining in the fight against coronavirus outbreak is hologic, receiving emergency use authorization from the fda for a molecular test that detects coronavirus president , chairman and ceo Steve Mcmillan thank you for joining us, steve. Are these tests being used yet thank you, sara theyre starting to be used today, in fact so the fda was incredible. We submitted our emergency use authorization literally late in the day on saturday. Our team was going back and forth, and on monday, just yesterday, they cleared it we had a couple products already, known as research use only today we started shipping actual live product. Where can people take these tests and how do they pay for them sure. Its frankly, theyre going to a lot of our existing customers. Were obviously in the very early stages of our rollout. We dont want to say which customers exactly but customers across the country. And hospitals and around the world will start using these. Yes, mostly hospitals as well as some of the research, the reference labs so the quest, labcorps, brls, they can also use it as well one of the great parts about the footprint of our panther machine, which is what it got cleared under, its in a lot of Hospital Systems because its a fairly small machine that has high throughput, great automation so were supplying our customers as we can do it, as fast as possible, as are other companies as well. What is your capacity how many tests can you do a day and how can you ensure you have the materials that you need . There have been errors that some of the materials for these test kits are not available it is a great question. What weve been very careful is to try to be honest and manage the expectations we think we can produce about 600 thousand tests in the month of april so, were ramping up right now weve been very clear with our customers to allow them to start to bring these on. Each one of our panther fusion tests can run its about a threehour turn around time for the data and run multiple cycles per day. Each panther fusion able to produce quite a bit. Were limited as much as we ramp up our capacity. Its about a 12fold increase in what weve been producing for, say, example the flu virus were ramping up to have all the materials and, believe it or not, one of the steps in our particular supply chain is to be plastic cartridges that we put all of the devices in. So weve been working to get those accelerated. Steve, i know the name of the game here is speed and we need to get as many tests to as many people as needed how accurate are they . I wonder if anybody has tested it, are there false positives or false negatives, where you get a positive test but you dont actually have it or you get a negative test and you do actually have it sara, its a great question as you may well recall, that was some of the early problems, particularly in china, where they were seeing very heavy levels of false positives. The great thing that really comes with our test is because its high throughput and its automated, very low manual, we have identified the strains using bioinformatics and what hologic has always been known for is when we come with it its very high specificity. Very low on false positives, also very low on false negatives. And as you well know, the biggest problem in an outbreak like this would be where youre getting false negatives, where somebody thinks they dont have it. Of course. Theyre sent home the precision of our taest, because it is automated, is the precision of the other tests that were really being done manually. Good luck getting those tests out there. Thank you were working hard our team is doing great. How grocery chain kroger is encouraging social distancing and whether americans could see a shortage of Consumer Staples watch or listen to us ve olin the go on the cnbc app well be right back. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] lets take a look at how we finished up on wall street off their highs of the session, though, s p 500 up 6 , dow up 5. 2 , gain of 1,000 points, which has become the norm these days tech heavy index up 6. 25 , this after the worst dip for stocks since 1987 where s p stimulus support from the Federal Reserve and shortterm funding market and we did see yields, tenyear, cross over that critical level. There was selling of safe haven bonds. Lets go to mike santoli and the third dashboard of the day. Yes, sara, dividends as a way of getting equity exposure without taking much risk look at the broad ishares, the s p select dividend index. Its underperformed since the market highs lot of banks in there. Probably a big reason. Shortcut way of deciding which blue chip stocks are decent dividends can certainly sustain. I went through the Dow Jones Industrial average and found a few names where they well exceed the companys tenyear debt yield. Bonds yields less than the stocks now thats not the case in general marketwide for corporates it does show that there are obviously financially very Strong Companies that have surfaced at aboveaverage yield. Cisco, coke, home depot, merck every one of them might have growth issues and not be positioned to benefit so much from a comeback. This shows youthat the market is generating Income Opportunities above and beyond what even the debt markets are for these very secure companies and thats just a one little way to back into some companies that may be a bit unduly punished in all of this. That was savitas strategy of bank of america. Up next, ceo of kroger discusses how the coronavirus is having an impact on his industry and how theyre keeping the shelves stocked. How new jersey could keep everything from restaurants to nos closed well be joined by Governor Phil Murphy wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. 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So we can spend a bit today, knowing were prepared for tomorrow. Wow, do you think you overdid it maybe . Overdid what . Well planned, well invested, well protected. Voya. Be confident to and through retirement. Before we talk about taxsaudreys expecting. New . Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. The dow closing higher by more than 1,000 points today, making up some of yesterdays lost ground, though still sharply lower for the week some of the biggest gainers on the dow today, dow inc. , the Chemical Company it had been battered lately. Travelers insurance, intel walmart. Biggest losers included boeing and walt disney. Cnbc news update on the coronavirus with sue herera. We just got some new numbers from Johns Hopkins the number of confirmed coronavirus cases around the world has jumped to just under 196,000. The death toll has risen to more than 7800. Italy is now reporting more than 2500 deaths, nearly onethird of the total globally the American Red Cross here at home desperately needs your blood. The Organization Says the coronavirus outbreak has resulted in the cancellation of roughly 2700 of its blood drives across the country new Safety Measures have been implemented at Donation Centers and blood drives to protect both doctors and staff. Researchers have found no evidence that the virus can be transmitted through blood. Mike esper says the military will make up to 5 million respirator masks and additional protective equipment available for the government to distribute 1 million of those masks would be available immediately the pentagon has also prepared to distribute up to 2,000 deployable ventilators thats the latest that we have, sara ill send it back to you. Sue herera, thank you very much. Certainly america grocers have stepped up to stay open and stocked Rodney Mcmullen joins us now are you there . Yes hi, sara. Tell us what your life has been like the last 24 hours. How are you keeping it all together and keeping it open im so inspired by all of our teams, doing incredible work, going well beyond and taking care of our customers and our communities. Its so exciting and inspiring. How are you protecting your workers . Well, were making sure that were following through all our cleaning processes across the stores every day and at night now were closing so that overnight we can restock the stores and keep them clean as well and making sure we practice all good hygiene. Are you looking at reduced operating hours, making any other changes to adjust to the situation . Yes were reduced hours everywhere, usually opening at 7 00 in the morning and closing at 8 00 at night. It really gives our teams an opportunity to do a deep cleaning overnight, plus restock the shelves. The stores are getting deliveries every day. How do you keep morale up for your employees so many of americas workers are able to do that from home. You cant do that when you have the Grocery Stores open. Keep them at work, social distancing safely and keep the morale up . I love the question because to me its so inspiring. Every day im getting into a couple of stores and theres so many customers coming up to me and just thanking me for everything our associates are doing. And when i talk to our associates, theyre so uplifted by the appreciation theyre getting from their customers, and they really understand theyre critical to keep everybody eating in their houses and everything else. Its very inspiring. Theyre uplifted by it. In australia, rodney, we saw that the largest grocery chain there is opened 7 00 a. M. To 8 00 a. M. Where you have to show i. D. And be 60 years old or have an Underlying Health condition so those folks can get what they need before they run out and not have to worry about crowded stores are you looking at doing anything in this country were starting to test it in a few markets in the next couple of days to see how it works. If it works well, then well expand it to other markets as well we think its a great idea and were just going to see how many people use it and how it works. Are you hiring right now . Yes right now we have over 10,000 openings, hiring every day over the last week weve been able to hire over 2,000 people we have relationships with several different other industries where theyre directing their people to us and we have a ton of openings, and were really looking for people in the warehouses, plants and stores as well. What about sick leave sick leave . Last week we announced emergency sick leave for anybody that has the coronavirus, that we would pay. And if somebody is in quarantine, we would also pay for that on a temporary basis. Full pay for when they have to be out . Yes. You employ, what, half a Million People about 460,000 associates. So its really important. What are you seeing in terms of Consumer Behavior . Its really all across the board, obviously, the customers are coming in, and especially things that, you know, food, early on it was more toilet paper, some of those things. Now its more the Fresh Products but one of the things that we keep sharing with our customers, theres plenty of inventory. When you come in, please buy just what you need for you and your family. Theres plenty more product coming and were restocking every night. No reason to panic. Are you able to restock things like Hand Sanitizer and clorox wipes you cant find them anywhere here in new york. Yeah, Hand Sanitizers would be a shortage everywhere, and very limited whats coming in. Toilet paper, we are getting stuff in every day on clorox, its really been a great partner on narrowing some of the production on a fewer skus and some of that product is starting to flow through. What it you tell the president . I believe you were on the call with him this weekend with walmarts ceo and a number of others. Yeah. What was the message . We really said pretty much the same thing across all the retailers, get the message out there that theres plenty of food in the supply chain dont panic. Dont stock up buy what you need and were going to be open there for you and our associates are here to serve you. And we believe everybody has the right to have highquality food at affordable prices. What about if we do start to see more cities and states implement these stayathome, sort of shelter at home policies where you cant go out are Grocery Stores exempt . Our expectation and certainly the local agencies and things have said that Grocery Stores are critical and if you look in china and italy, theyve remained open throughout it. Obviously, reduced hours and you manage the number of people in the store at any point in time. Rodney mcmullen, thank you for joining us. Thanks, sara. The ceo of kroger now lets talk about one of those states i believe joining us now is Governor Phil Murphy, the governor of new jersey. Hello, sara. Thank you so much for joining us hello. You called on the federal government to have the army build hospitals, i believe, is the latest tell us about your communication with the government and what youre asking. Yeah. I just got off the phone with Vice President pence i think its much more likely, which is largely due to speed, were looking already at inventory, buildings that we could convert into health units, so maybe shuttered wings of hospitals, shuttered hospitals in their entirety, maybe converting dormitories that arent being used and the other option is to also look at the socalled m. A. S. H. Tents where you would move patients into a highquality experience but then open up some rooms were doing everything we can to flatten the curve. Weve been as aggressive as any state on social distancing we cant only rely on that weve got to make sure were also looking at our capacity in the health care system. Did you get any assurances from the Vice President . We got no assurances but our discussions with them over the past several weeks have been very constructive. Weve got a big ask into the federal government and into the white house for personal protective equipment, which we are particularly short on, given the sum of what we need reiterated to the president and Vice President yesterday we need a bigger slug of that. Were going to need ultimately boots on the ground whether thats the army corps or fema, which is already helping us with testing, and were going to need a big dose of stimulus because this is obviously having an enormous impact on our economy as it is in every american state. What can you tell us about the number of cases in new jersey and what youve learned about how aggressive this virus is spreading there its aggressive we have 267 cases that are positive we have three, sadly, fatalities we announced just overnight that number went up by 89 to 267. Again, we are obsessively trying to get ahead of the social distancing we are strongly discouraging any travel between 8 00 p. M. And 5 00 a. M. Unless its essential. We shut bars and restaurants unless its takeout. Weve shut gyms, theaters, ca casinos. Weve reduced the maximum number of persons who can gather dramatically were doing everything we can to get out ahead of this, as we start this had work in january, so were still at it every day this is not easy we are the densest state in america. No matter how good of a job you do, you have a reality on your hands that every american state is dealing with and were going to continue to get out there every day and try to get ahead of it. New york city mayor floated the possibility of shelter in place, basically stay at home. Is that something that you would be looking at doing . And how do you enforce these kinds of curve curfews and recommendations . On one hand, sara, i would say everything is on the table so, we are trying like heck, as i said, to get out ahead of this that is certainly an option if we dont think were succeeding in flattening the curve. We think what weve done gives us a very good shot at doing that but we reserve the right to reconsider all of our steps. Listen, i called up the National Guard yesterday, which gives us another pool of folks who are qualified to help us from everything from Food Distribution to testing to policing and enforcing we will continue to monitor this literally daytoday and we will do what it takes to crack the back of this. Good luck and good work thank you very much, Governor Phil Murphy. Thank you very much take care. From new jersey. The dow finishing up by more than 1,000 points today, making up some of the lost ground from yesterday. Well continue to dive into this volatile market. And were also going to talk to the ceo of Restaurant Brands international. They own burger king had a meeting with the white house today. Well be right back. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. 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Im proud to be part of aag, i trust em, i think you can too. Breaking news on boeing. Phil lebeau with the story phil remember in february when the company said now we have a new credit line we have taken out and this credit line is for about 13. 8 billion . The company said they have drawn down that entire credit line, to give you some sense how quickly the company has been burning through cash we can confirm through sources that as part of the negotiations in washington, boeing is seeking tens of billions of dollars in government aid some of that will be coming through Loan Guarantees. We dont know the exact amount hasnt been finalized as of this point. We dont know the terms of what will be with those Loan Guarantees but thats some color in terms of the negotiations in washington one last thing, sara s p is out with an estimate. Global air traffic, according to s p this year, will drop 30 not surprising, given the number of flights, routes, et cetera that have been canceled so far sara, back to you. Phil lebeau, thank you. Boeing down 55 in this month alone. Up next, 1,000, thats how much facebook is gevg iving to of its employees right now and how other companies are combating for the coronavirus straight ahead every time it takes care of something for us, we celebrate. How often does that. Got it. Servicenow the smarter way to workflow. Its only human to find inspiration in nature. And also find answers. Our search to transform. Farm waste into renewable natural gas led chevron to partner with california bioenergy. Working to provide an alternative source of power. For a cleaner way forward. 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. Lets get to Steve Liesman with breaking news. From the president of the atlantic fed is saying that a term auction facility is among the next possible steps for the Federal Reserve. Taft was rolled out in 2007 in the subprime crisis. It existed through 2010. And its really a discount window another name is the best way to put it because the discount window, as you know, sara, had a stigma attached to it it wasnt really a discount window because the fed created it i dont know if its a broad range window but believe its similar. Given how many economic shops or forecasters are saying a recession is inevitable. In fact one even said were in one now. Bostic saying a recession can be avoided if the virus can be contained. He does concede the Second Quarter will be rough. Kansas city fed president said that the Kansas City Fed stands ready to loan through the discount window, sara. Comments there about additional work as you know, sara, this was a big day for the fed coming with additional paper facility and taking those 500 billion repos its been doing on a scheduled basis and essentially scheduling them it will offer a trillion in overnight repoe. Pulling out the big guns. Steve, thank you Steve Liesman with so many painful headlines surrounding the coronavirus outbreak, we are trying to highlight good news in the world as companies and communities rally together in unprecedented times. Here are some examples for you facebook offering cash grants total of 1 million to 30,000 eligible Small Businesses around the world and for its own workers theyre giving out 1,000 bonuses to all employees and making it easier for fulltime employees to earn performance bonuses for the first half of 2020 Video Conferencing software for free as more students, teachers and parents deal with school closures. Dollar general says its dedicating the first hour of operations to Senior Citizens in an opportunity to help reduce crowds you just heard kroger ceo tell us theyre testing it as well. An an individual level, dick costolo is working with Bay Area Charities to fund dinners for 40 families, saying theyre upping it it well talk to that mans zoom ceo. Restaurant brands, owner of burger king and popeyes will tell us how the coronavirus is impacting his business sfx [phone ringing] you still have service . Call the Insurance Company its them, calling us. Its going to be a week before they can get through on these roads shhh, sorry, i didnt catch that. I said ask how soon they can be here right now . Whats now . He says theyre surveying our property now theyre probably at the wrong house i dont see any hovering his name is hovering . Look up . By automating claims with Machine Learning and analytics, cognizant is helping Insurance Companies advance how they serve even hard to reach customers. 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The president and treasury secretary specifically brought up food chains saying drivethrough, delivery and pickup will be essential to feeding americans in the coming weeks and months the own ary of burger king, tim hortons and popeyes and i believe is joining usfrom a burger king location via skype in florida jose, nice to see you. Hi, sara. The president talked to a number of Restaurant Industry ceos what did you learn from the white house . Well, i was really encouraged and positive coming out of that session. I think both President Trump and treasury secretary mnuchin were very collaborative and showed a lot of understanding of our business and the realities of our Business Today and with the pressures that are taking place in terms of limited folks on the streets and so they understand the impact on franchisee liquidity and Small Business is being impacted because of the pressures out there and they also understand and are calling for us to step up us as an industry and a Restaurant Industry to step up in terms of addressing a real need in the communities out there which is feeding americans and were open for business and our drivethroughs and our delivery business, or mobile order and pay apps along with pickup in the restaurants and it allows folks to continue to eat and feed themselves and their families in a moment where theres a lot of focus on social distancing yes so how do you do that . How do you keep your workers and your delivery people safe . How do you keep the food quality safe so that people can feel confident ordering it at home . Weve always had heightened hand washing, sanitizing and cleanliness procedures for the restaurants and since the coronavirus became a reality in asia and its through europe and now north america, weve raised the procedures and the heightened scrutiny on hygiene and sanitizing and hand washing and using Hand Sanitizer production and at the restaurant level weve had much more use of that to be able to and our team members are doing the right things in the restaurants and managers, as well and weve had contacts with experiences through the drivethrough and kiosks as well as through the mobile order and pay app and delivery and enjoy food with dinner late night for snacking without having to interact with too many folks. If we see restaurants in this country remain closed for an extended period of time we could be looking at into the summer and beyond that. What would happen to employment and this country and industry . I know youre still doing preparation and delivery, but im sure at some point you have to cut back on staff if restaurants are closed. Were open for business and were feedingamerica all of our restaurants all of our franchise owners in the u. S. For popeyes and burger king and tim hortons theyre operating their restaurants and they have team members out there and were working hard trying to make sure we meet demand whether its coming through the drivethrough and delivery and were working on franchise liquidity issues day to day to make sure they have the right levels of cash in the business to be able to meet all of the costs of the business, and i think the government at the federal and the state level as well is coming forward with actions, as well, to be able to address that, too. How much is traffic down say in the last few weeks . We havent shared that publicly, but we are seeing dinein businesses slowing down significantly and in many cases what weve done is the dinein experience is allowing food for customers to come in and the deliveries have stopped and drivethrough business is a little bit down, but still strong were open for business, and were really proud of all of our owners and as hes around north america and the u. S. And serving the customers with the communities and one more thing wed bible to share here, sarah, we Just Launched a kids meal for burger king that we think will be able to address the needs of children across the country. Jose, thank you for joining us. Thank you another volatile day on wall street the dow closing up a thousand points and what investors need to be watching Brian Sullivan pks iict up next. Stay shave and healthy, everyone when i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. 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Welcome, everybody i am Brian Sullivan live in new york city, down 3,000 points one day, up 1,000 the next this as the white house and the fed pull out trilliondollar plans to try to stabilize the economy the dow surging more than 1,000 points for a 5 gain the thought of hundreds of billions of new bonds being issued, yields moved higher. In fact, the tenyear treasury note yield is back above 1 . Crude oil got crushed again on concerns o