Transcripts For CNBC Fast Money 20240713

And oil down 6 to 2860 and change oil now on pace for its worst month ever and here is a stat that really sets the tone for how things have been and it comes from our friend ryan detrick at lpl financial. It markets the serventh straight session that was up or down and this breaks the previous record of six such volatile sessions set all of the way back of november 1929, a true sign of the times. All of the markets rising today. It is clear that we are in unprecedented times for the markets and the economy, but we are here for you here on cnbc with the folks working tirelessly around the clock. Bob is downtown and steve has more on the Federal Reserves move and most of the action came from inside the beltway. Lets get to Kayla Tausche with what was live with the white house response. An unprecedented stimulus package the white house is proposing, 1. 3 trillion in relief for businesses and workers whose revenues and wages are grinding to a halt the treasury secretary Steven Mnuchin putting forth this proposal on capitol hill today to senate republicans. It includes, according to a Senior Administration official 550 billion in direct payments to americans or tax relief up to 300 billion in Small Business aid and up to 100 billion in targeted industry relief and add to that an estimated 300 billion in deferred tax payments. The treasury secretary said the benefit to the American Economy is greater than of the cost. In different times well fix the deficit. This is not the time to worry about it this is the time that hardworking americans are impacted by government decisions. Thats when the government has to step up this proposal is a third package that follows an 8 billion funding package that helps agencies, and a house bill that passed last week that provides an estimated 105 billion in paid sick leave to an estimated 40 million Americans Senate Majority Leader Mitch Mcconnell today said that the senate would vote on that bill federal regulators are working to relax postcrisis bank rules to allow banks to continue lending to businesses as their earnings continue to deteriorate and have a loan Backstop Program that is unveiled this week the department of defense it is it is providing masks, ventilators and Testing Facilities and is deploying the National Guard to aid in the coronavirus effort here. Of course, after weeks of mounting concerns about the spread of this virus and the economic fallout, the effort from wish wash is now in full force. Kayla tausche, thank you very much now lets get back to bob pisani at the New York Stock Exchange hes here to talk about markets the consumer and i assume maybe a trillion dollar plus bailout, as well, bob. It moved the markets, brian the dow swung in a 1500point range from its low right after the open to its midday high and this time the rally held and i think there was plenty of stimulus talk from the white house and both houses of congress and the fed establishing a commercial paper funds facility to buy unsecured shortterm debt issued to raise funds and todays rally fell tentative and it was a rally and it came on lighter volume than usual. Volatility has also flattened out a bit and i say flattened out because the vix remained extremely elevated and its been flat the last several days and it would be nice as yields shot up dramatically at the end of the day and j. P. Morgan outperforming the market for the first time in a while, but defensive stocks still led and this has been the story. Outsized gains from consumer names like spice maker mccormick and hormel foods and clorox also at a new high. After a dismal few days large retailers also bounced back including urban outfitters, tjx and best buy and all down double digits boeing and the airlines will be a part of the Stimulus Program and you heard from kale a government help sounds good. Traders tell me there may be lingering concerns from the financial crisis when bailout programs for autos and insurers wiped out the equity for shareholders and that could be an issue, brian certainly could bob pisani at the nyse thank you very much. So bob mentioned the commercial paper market so before we get into more of the fed and what theyre doing perhaps its helpful to highlight first what exact leet commercial paper market is youll be hearing a lot about it well, at the core, cp as you will hear it called is a fancier term for shortterm loans. Loans of a few weeks or months or shorter that can help companies and Small Businesses do critical things like make boy roll and buy the goods they need to stock their shelves the purpose of the cp market is millions of companies dont have to go get formal bank or Small Business loans every couple of weeks and months when they need shortterm cash. Put very simply, its the grease on the wheels of cash flow so how big is the commercial paper market its big the latest data shows it is over 1 trillion, although, believe it or not, that is actually less than it was before the financial crisis lets bring in now Steve Liesman and tell us about the fed, the cp market and why it is so key to keeping that grease in the wheels of the market flowing. Yeah. Great explanation there, brian and it was a very busy day for the fed. What happened is people were not the companies and the the investors were not buying that commercial paper and as you described it so critical to business that if they cant get this commercial paper, well, really, they cant operate and the reason, of course, is because money markets are the ones who buy a lot of that commercial paper they were afraid of getting drawn down and there are outflows so a big day for the fed and answering the call of of many in the market to backstop this commercial pirp or cp market they created the commercial Paper Funding Facility and they same name and pretty much the same turn and the Company Provided a 35 million backstop. It could buy up to 700 million of the oneplus trillion, some of the people is not included in there. The fed will let you do another complicated thing. The reviews on the commercial paper were not that great, brian. Person person said it replicates its actions in 08, welcome, but not enough the billion dollar bill is a start, but the focus on the payroll tax cut is a mistake another Senior Market participant i talked to said it is too punitive right now. Thats what theyre using and the commercial paper market is still not functioning well others say it may eventually function well and brian, heres whats going on in the credit markets and the economy is being shut down because of the virus and actions to stop the spread of the virus, but nobody figured out how to pay for it, so whats going on right now is theres concern about default and risk in a lot ofcredits right now and almost every actor in the financial industry is trying to make sure that theyre not stuck with those credits that will default or be at risk. Thats why what the administration is doing is so important and thats why what thefed is doing so important and two months or so that it is shut down because of the virus maybe youve done the market on the total, commercial fed and repo operations and possibly this trillion dollar stimulus . Are we at their 4, 12 terrell on the purpose the reason the fed is puts down 150 of that and comes back in the afternoon and puts 500 billion on offer on evernight repo and the market is taking 15 to 20 of that right now and the cp market it could be up to 700 billion according to the rules of the offering, but we dont know how much theyre going to take. I think if you take the 700 billion the feds going to purchase and the trillions in repo, we are into multiple trillions of dollars of available funds from the fed to backstop the Financial System right now. Basically the entire oneyear tax receipts of the federal government so far, Steve Liesman. Thank you, steve we appreciate it all right lets bring in guy adamy and dan nathan both here at the nasdaq. Well start with you, at a time of incredible stats ive got another one for you from the bond market and this one courtesy of national securities. Today was actually the sharpest oneday move for 30day bond yields since the year 2000 what does that tell you . It tells me a lot, if you have watched the last 15 years ive been a half empty person and thats the way i was raised on wall street, but im going to be the half full person today because i know as painful as this is for everybody watching, were going to get through it and well get through it on the other side better than we were when we got here thats my absolute belief. With that said, as you know my concern all along has been the bond market and i would be willing to bet the people that actually understand this stuff would have wanted the stock market to close unchanged today or even slightly lower and the yields in the market not move as precipitous to me. So theres absolutely some solace in the fact that we traded down with the s p 500 and effectively the december was what the low, and i guess it was 18 or so and thats a good thing any illsay it again the move in the bond markets are scary. Treasuries should not be moving like theyre moving. If they can stabilize it whatever that yield is and maybe its 1. 25 in the tenyear or thereabouts, that actually could be a really good thing and if you recall on the way down i said, listen, theres going to come a point of sddiminished margin returns that if we hit it the stock market wont like it and in the yields that was down 1. 4 and it stands to reason that on the way up 1. 4 better be resistance. We have to find out lets go to dan nathan. Most of the questions youre probably getting on twitter and social media or as i am, what are the key signs of capitulation a market bottom and are we seeing any of them now we are and just the velocity of the down move is unprecedented and down 30 peak to trough in a month here and were in this market right now where its one step forward and two steps back in a way. Yesterday was the biggest point decline in the dow jones and today, you know, we made up half of that. When guy was talking to some of those Technical Levels in the s p 500 that december 2018 low, we stopped yesterday just above that thats great, but if we fail then the next level below that would probable ebb ty be the br after the president ial election and that is below 2200 so we might have this support pocket between 2350 and 2150, and i think that would be significantly oversold, but then i think you want to look at the single stock level, right . So we know a lot of stocks have just been absolutely decimated in such a short period of time and well more than, say, the market would tell you with the s p 500 down 22 and we know you can look across transports and energy and a whole heck of a lot of other places where stocks were down 40, even 50 heres the one thing that i would tell you is a sign of capitulation in the long term is microsoft and apple and two of the largest market Cap Companies here in the u. S. And also in the world have outperformed in the down side. I think apple is down 30 on the year and microsoft down 7 down and theyre up meaningfully year over year if we look at march 17th levels, 2019, and investors might be waiting for to give up a lot of that and you might feel capitulation and then you might start seeing some of these other names that have been hit much harder in the industrial space and maybe the financials and maybe the transports start to outperform as we get a little worse. Those are some of the things that i might look for capitulation and one last point and i just have to go back all of the way to 2001 that peak to trough decline in that recession was 50 from the march 2000 highs to the lows in october 2002 and ill just tell you in that time period there were three rallies off of lows that were greater than 20 so i think what my point is impeach you can have these vicious bear market valleys here and it doesnt mark the bottom and you need to think interest of the stuff that guy was saying in the credit markets and you need to see the fiscal and monetary still laws work into the economy and let people feel better about the Financial Markets and the last thing ill leave you can is time is going to be a really, really important part of a bottoming process and capitulation will be in the nearterm. Before i go back to guy do you anticipate when we get this bottom and weve been highlighting the mega stocks, and the microsofts and the googles that when the market does turn a lot of people are saying what should i buy do you think the leaders of the previous rally will be the leaders of the new rally once or if it comes . Yeah. I suspect so i dont think were going to see that any time soon the other one is, like, look at the mosts that they have with the Balance Sheets and look at what they have with the market share and to me these are companies that will not be bailed out and if you look at history, some bad investments were buying those names on the bailout when we go back to the financial crisis and long term, they ended up being Good Investments and thats not what you want to make a portfolio right here of if youre thinking about getting free cash. You do not want to buy beaten up retailers and you do not want to buy beaten up airliners. Nearterm you might get short squeezes and dollar cost averaging into the massive tech names that have those monopolies, i think thats probably the way to do it and the qqq is the way to do it because we know those four stocks, microsoft, google, and amazon made up the nasdaq 100 just about a month ago. Guy, we look back at previous big drops on the market whether it was 2001 and 2008, various things and is there any historical present the way the mechanics have changed and of all of the stuff that we talk about, do we expect downside and to the upside. Ten years to your point, 08 and ooes 04. We are still in, and thats not sheer to cast aspersions and somehow the Federal Reserve had our back coupled with this advent of passive investment led to a market that passed everything and again, just for point of reference and this is not an apple negative thing and im not saying it for that reason and go back the weekend when apple said their numbers will probably not come in based on what was going on in china. On that friday apple closed in or about 22 a share i think it was an alltime high and the next day, that monday the stock, i think opened down 6 which is meaningless in terms of the move it had seen over the last six months and by tuesday of that week it was making a new alltime high. So apple told you what was going on effectively and the market didnt care. Passing, investing, the fed put and the that had an impax, absolutely things happen might faster maybe this wont be as prolonged as people think. Maybe the snap back when it comes will be faster, as well. Guy and dan, thank you very much important advice at a time like this cnbc has continued coverage of these historic times on wall street make sure to catch our special report markets in turmoil at 7 00 p. M. Eastern. Right now we have breaking news on softbank. Lets go to rahela solomon dow jones reporting that softbank is backing out of the bailout plan and this is according to people familiar with the matter. Softbanklling wework that it may not buy 3 billion of shares from existing investors as had been planned essentially what theyre saying is because we work under this investigation by the sec and the Justice Department essentially saying those preg lat or probes allow it to back out of the rescue deals that were signed in october. This is according to people familiar with the matter and the dow jones. One thing important to note here it will not affect the 5 billion lifeline that softbank had already agreed to give we work directly also important to note that apparently this will this would have allowed former ceo newman to sell nearly 1 billion in stocks so it looks like softbank was pulling back on that offer that would have given adam newman again 1 billion of a share purchase well see how this all plays out. Rahel solomon, thank you very much. On this deck on this big night. The very latest numbers on the virus spread plus some good news. The Biotech Company that says it is closing in on a potential Coronavirus Vaccine. Well bring you the potential time line, as well and later, Small Business bearing the brunt of the burden on the economic front lines. We will take you live with more on the u. S. Economy because not just just about stocks and its about business and workers in america right now and well be back in two minutes. Before we talk about taxsmart investing, whats new . Audreys expecting. Twins wed be closer to the twins. Change in plans. At fidelity, a change in plans is always part of the plan. Shouldnt you pay less when now you can. Data . Because Xfinity Mobile gives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 300 off when you buy a new Samsung Galaxy s20 ultra. Thats simple. Easy. Awesome. Call, click or visit a store today. Welcome back and good evening. We are getting new numbers on the extend of the coronavirus. Lets get to sue herera at hq to hear where things stand. Good evening. We got in some new numbers 196,000 cases and almost 7900 deaths meantime, defense secretary mike esper has announced more ways that the pentagon is becoming involved in the fight against the coronavirus. 5 milliones prart masks and ventilators are being made available for distribution by the government and theyre getting other help, as well. We have 18 states and over 1500 guardsmen activated at different parts around the country. As we get requests in, we will look at activating at the federal level or using the reserves macys is following nordstroms lead closing all of its Department Stores to help slow the spread of the coronavirus. That shutdown affects macys bloomingdales, blue mercury, macys backstage and other outlet stores. Overseas in italy a makeshift hospital shows how that country is working to expand its fas iltoits combat the outbreak. Outside tents have been set up to test and screen new potential patients brian, you you are uptodate. Ill send it back to you. Thank you very much new to a bit of good news that we need. Regeneron says a potential Coronavirus Vaccine could be coming sooner than expected. Investors piled into the stock because of it. Lets get more of the details and this with meg terrell. Meg . Hi, brian regeneron is working on a unique approach that could be used both similarly to a vaccine and as a treatment for the infection and it provided an update for getting into human testing thats two months earlier than expected by early summer the companys approach is to develop antibodies that neutralize the virus and regeneron scientists are sorting through those as well as antibodies from people who recovered from covid19 to find the best two for a cocktail to start human trials as they do this, theyll be scaling up capacity to produce hundreds of thousands of doses a month for preventive use by the end of the summer and this is a different approach from what we heard yesterday which is a test for Rheumatoid Arthritis drug k kevzara. All of these things take time and for the antibody approach regeneron will have to prove its safe and effective before it be used more broadly, but remember, they have done this before, for ebola developing a three antibod i cocktail to save peoples lives so there is a lot of hope here theyll be able to do it again, but it will be a number of month, brian, before we know how well it works. Regeneron is not the only one. Ive been listening to your amazing reporting and i know youve been working tirelessly around the clock, as well. There are a number of companies that are on the front lines of trying to get us a vaccine right now, are there not there absolutely are and we spoke with two of them pfizer and Johnson Johnson they both have programs going on pfizer striking a partnership today and saying it plans to be in human Clinical Trials by the end of april with the partner bioentech and thats just one month behind moderna which is a Smaller Company partnering with the u. S. Company and they dosed their first patient in a human Clinical Trial yesterday so these things are going incredibly quickly and in order to know that theyre safe and work, that will take a year and a half meg terrell thank you very much. All right. We will hear more from regeneron tonight at 6 00 on mad money, jim and a cantmiss interview youll want to hear where they stand today and how soon something could be done. Coming up, one of the nations biggest unions out with a major call to action well bring you more on the incredible move and more news on boeing crossing within the last hour and why it is looking for a bailout. The details when we come back right after this all right. Welcome back we have breaking news on boeing. Lets go to phil lebeau with the very latest. Phil brian, remember it was early february and in an 8k, boeing said it established a term loan for 18 billion and at the time people said thats kind of interesting. Well, guess what a little over a month yart they have dropped an 8k and they have drawn down, completely drawn down the 13. 8 billion that gives you some sense of how quickly boeing is burning through cash which leads into the other piece of reporting i have for you we have talked to people familiar with boeings negotiationser its request on capitol hill and boeing is seeking tens of billions in government aid and some of that would be through loan guarantees and we dont know the exact amount that boeing is seeking and nor do we know the loan guarantees make mow mistake boeing is burning through cash very quickly because its being hit with a double whammy right now. Its not selling the max because its grounded and at the same time the Airline Industry is under immense pressure and thats the reason why you see so many people saying how much will the government do to assist boeing and by, tension, we should point out, it will assist the entire Aviation Industry because a lot of money that goes to boeing will ultimately be going to suppliers and the concern is you dont help boeing and you dont help the suppliers and you potentially see some of the industry and maybe not collapse, but certainly be damaged. Phil, you have big news on the United Autoworkers Union and the automakers whats happening there essentially it comes down to this on sunday, the united autoworkers talking with the big three automakers said look, we think you should shut down these plants and the big three said give us 48 hours 48 hours is 6 00 tonight and thats when the big three ceos will be meeting with leadership from the uaw and the uaw essentially wants them to shut down the u. S. Plants for two weeks. Think about the footprint that the uaw has. 150,000 members at basically 25 big three final Assembly Plants and were not even talking about the dozens of other big three plants that the uaw are at they would also be impacted and the key issue is when do you stop production. Look at it this way. You see that gm and ford and Fiat Chrysler are selling all of their whitecollar workers work from home. We do not want to have people in an office environment. We want to have as much social distancing as possible and yet 1500 to 2,000 of them are going to go into an auto plant so thats the concern from the uaws perspective. If youre looking at it from the automakers perspective they say theyre taking steps to make sure that the workers are as protected as possible and if you shut down production, brian, theres no guarantee that it comes back in two weeks. It could be six weeks. It could be seven weeks and once you shut down production you kill the cash flow because those cars when they leave the plant, thats when they are sold. Its not when they leave the plant its when theyre sold to dealers. Do you shut down the plants and if so . For how long and the question is whether or not does it happen now and does it happen in a week or a week and a half these will be contentious talks tonight. Truly remarkable times and phil lebeau, thank you very much. You bet all right coming up, do you think Interest Rates are going lower . Youve got to think again. Rates making the biggest move higher in more than a decade today and coming up you will hear from one of wall streets topranked strategists and then as we wrap up here, asia set to open and well take you where the Global Markets remain on edge were back right after this. Robinhood believes now is the time to do money. Without the Commission Fees and account minimums. So, you can start investing wherever you are even on the bus. Download now and get your first stock on us. Robinhood. Dad, im scared. Its only human to care for those we love. And also help light their way. Its why last year chevron invested over 10 billion to bring affordable, reliable, ever cleaner energy to america. Tell you something, i wouldnt be here if i thought reverse mortgages took advantage of any american senior, or worse, that it was some way to take your home. 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That means more debt would be issued which means yields are going go higher and certainly they did today in a big way. The tenyear cracking first first time in two weeks and it posted the single daily jump in yield since the 2000 mike cabana head of u. S. Rate strategy at bank of america joining us by phone, of course thank you very much for joining us are you pleased with the Federal Reserve and the government response so far in stabilizing what was obviously a fairly shaky credit market . Yes i think the actions taken by both the Federal Reserve and Congress People and folks in the administration certainly have delivered a jolt of confidence to markets and hopefully to the broader population so what the fed did was they announced a very unusual facility in order to support issuers in the commercial paper market to make sure they have access to shortterm cash during any type of revenue loss and that, i think, should help stabilize the credit market to some extent and then, of course, there is a very big stimulus package which was discussed. We are still waiting on final details of that, but it shows that there will be real relief to americans that are impacted by the coronavirus in a big way. You know, theres a lot of pushback on the use of the word crisis people say thats being extreme and when you look at these moves from the Federal Reserve and were going back to 2007 and 2008 with the acronyms and these programs that are either being enacted or being talked about, mark would you say that we have a form of a financial crisis right now . It feels like one to me, but the genesis is very different. Remember back in 2007 and 2008 that was largely driven by issues that were associated with banks that perhaps took too much risk or took imprudent risks the issue today is that there is a real shock to the economy and it could be very large and very sizeable, and Financial Markets are reacting in ways that react that type of very big shock to the economy and that is having reverberations across Financial Markets and its causing certain stresses in Financial Markets that the fed felt it was important to step in and try and address. Ipersonally applaud the steps that the fed has taken because i do believe that will happen. Are there other steps they need to take i think so. I think were only seeing the start of it at the moment and i think what well see from the fed in the coming days is to try and help shortterm credit markets. In particular the commercial paper and i hope that well see more assistance for money market mutual funds so they can continue to provide very vulnerable outlets for cash and investors and the treasury secretary today was talking about programs like, its one of the alphabet soup acronyms which was implemented back in the crisis which allowed for the fed to lend to certain investors that can then lend into credit markets and buy certain creditrelated assets and we may see Something Like that today and i think that it would certainly help and it would help stem the widening that weve seen in credit spreads and it should help to try and improve broad market functioning which has certainly come under stress in recent days mark cabana of bank of america. I real pleasure. Thank you very much. Thank you lets turn to bonds and uncharted territory. It did hit its highest level in history yesterday. Thats right even higher than at any points in the financial crisis and how can you protect yourself and your money in these tenuous times . Mike ko and a simple question is the vix has come down a bit today as the market rose is there any signed of an allclear in equities to you no. Its a common thing, i think, for investors to look for things as opportunities to buy equities and it can be very tempting to use them as entry points and think that they represent shortterm buying opportunities, but you identify the credit crisis as one of the Historic Events that weve seen where we saw very high ratings and it may interest people to remember that actually the two highest vix levels we saw which were in october of 2008 and subsequently in november of 2008 did not represent the absolute lows for that specific bear market which occurred march 2009 and if we go back to prior instances, you know, we can look back to the tech wreck, for example. What we saw there, too, is we saw a very steep spike in volatility and we did see shortterm lows and some of those proved to be bear market rallies and we had a lot of pain in the nasdaq 100, for example, which were over 80 peak to trough and that played out over a lengthy period of time. Now mark who you had on before and this was a different kind of a crisis and the credit crisis was you had very distressed bank Balance Sheets then and now we have more of a liquidity problem for businesses that are suddenly just not seeing a Economic Activity and a slightly different situation, and i do think that, you know, the actions that we were seeing from washington today might prove to be, you know, positive until we get follow through on to tha are the right steps trying to help individuals and businesses. Yeah. Thats a different thing than going out to buy distressed assets to shore up Balance Sheets. I appreciate you joining us be well, my friend coming up, how Small Business, the heart of the American Economy is dealing with the slowdown of course, do not miss our special coverage continuing tonight and markets in turmoil. Well give you Contessa Brewer oid show you what bars are dng and not doing on st. Patricks day. Stick around you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Dont get mad get e trade and start trading there has never been to have a favorite food. With new grubhub plus you get unlimited free delivery and cashback rewards for ordering noodles, and noodles. And noodles. And noodles. Grubhub plus. Free delivery, cash back, and noodles. Today was a tough day for restaurants and bars here and across the nation because its one of, if not the busiest day of the year. St. Patricks day. Did you forget but here in new york and other major cities most have been ordered closed or shut down voluntarily. Contessa brewer is in Downtown Manhattan with a scene, that i think would be hard to believe if it wasnt so real brian, here we are happy hour on st. Patricks day, normally darwins tavern would have the doors wide open and the crowd would be spilling out on to the sidewalk and wall street types, and today the doors are closed for business until the mayor says its safe to open. This is a neighborhood thats hurting. Pizza, right . They always do delivery. They do takeout price and used to this kind of thing. Hes had to let busboys and servers go because thats how theyre anticipating the impact from these shutdowns is going to be lets go down this street here this is a neighborhood that was hit hard during sundayy and theyve been here before and they know what its like to be closed down and not to have business coming in, but look, youve got a wine bar. How are they goingto do takeout price or delivery down here we have jacks coffee. This is a place where people are coming in, theyre grabbing their coffee and moving on, but right now it looks like the ice cream shops you know about social distancing, guys, six feet apart. And this is one of the most famous dive bars in lower manhattan. Jeremys outhouse and its been through a lot and how are they weathering the storm, brian . Take a look at the sign out here 4 quarts of beer to go. Theyre doing takeout price now for beer because they dont have a crowd. Dead empty its sad you know, jeremys is the place that sells the beer in the foam cups, i am told, i hear yeah. On a serious note, this is, contessa, a day where for people that dont go to lower manhattan, there would be as far as you just walked, a line people who already were, as they say far into their cups, this is a devastating revenue loss not only that, its happening across the nation. There are at least 15 states that have ordered dinein facilities to be shut down, and i talked to Business Owners and restauranteurs today who say theyre coming off slow january, a slow february, march was supposed to be the kickoff to spring the kickoff to business resuming again and instead theyve seen it just completely wiped out Contessa Brewer in lower manhattan, tough times and it will be a while, but were glad youre there thank you very much. See you soon lets bring in a familiar face and voice to many of you, seymour, and he owns the bar wxou which i would argue is the preement dive bar and i mean that in a loving sense in new york jim, how big of a blow is this to your workers and are you still going to pay them . Were going to be closed. Were going to be closed for the foreseeable week and we cant do takeout price of green beer today so weve got staff that we will keep on look, we have it better than most because we have a pretty Lean Business down there were a bar. We dont have a big restaurant staff, but what i think people underestimate is the pain that the Small Business owner was going through before this happened commercial real estate prices are are exorbitant in manhattan. Theyve gotten worse especially with lower Interest Rates and landlords that its a blended yield and they dont care if places see employ tee and that is why you see storefronts empty in major cities and major areas. So the fact of the matter is, there are folks here who work for us who rely on the income that is able to support creative lifestyles and theyre artists and actors and wherever they are. Its a sad day, and were an iconic bar in the west village and it would be a huge day for us, but were not going to cry in our beer. I know that we are a stock market program, but lets talk about the human side of this there are 23 Million People that work in restaurants, bars, hotels or catering according to their industry associations. Yeah. We lose 10 , 20 of those jobs, were adding 5, 6 Million People to the jobless roles. This is an industry which needs a fairly rapid recovery or i would imagine you would agree, some sort of targeted stimulus directly to the Small Business worker. Well, right now the Small Business has to continue to pay the rent and pay the bills and theres so far they feel that theres been no discussion and i dont think you will be at your landlords its not their fault and having said that, there needs to be relief and most Small Business folks do not own their real estate and thats the biggest cost in addition to pay role so as you talked about, were at peak labor and we hit the 275 on the nonfarm payroll and restaurant workers are not counted as part of the job market so when you think about the impact on the consumer it is 78 of the economy and this is something that thats very difficult to quantify and obviously, if you look at some of the Bigger Companies that we talk about every day on the network and the inflexion rate peaks and how quickly it takes to get there and how quickly it takes to recover will be the determinant of whether this is be safe or straight into recession. Thats the complicated part about where stimulus is going through today. Im glad we can talk about it in these times you have to think about those folks, as well, but before we let you go we saw a thousandpoint game for stocks and a couple of trillion will be thrown at the Financial Markets and the credit markets and were you happy with todays price action and does it signal any kind of a bottom to you . Again, these moves, i think i prefer to look at it is where are we over the next few days and if you net out the 7 move which we talked about was pretty artificial somewhere around 2500 here looks like the market is trying to find some levels and ill let the technical market talk about it, but the things that today theyren kurlging theyre encouraging or concerning and this kind of a fiscal on top of a massive deficit and where we were funding Corporate Tax cuts at 3 gdp for ten years, the dollars up 5 off its lows and this is a flight to quality and this is actually, sadly good mood. So the enyear sold off over 3 points and it is now backed off and on some level it shows it is getting back to relative value and oil plummeted lows the most important thing im watching right now is credit and if you look at the Investment Grade credit and its about 125 over and i think the real risk for a lot of corporates and this was brought up in focus when the discussion of 39 billion to airlines who were buying back stock, a lot of companies levered up their buying back stock. The bond funds that we talked about, corporate and high yield, they went down today, tim. Thank you very much. Good work. Happy st. Paddys thank you very much, tim seymour. We are now a few hour away from the beginning of trading in asia and lets get to will calorris in sid naydney, austraa good morning, brian or govern the nikkei have a 300point lift and we are awaiting the february tra trade data this strengthens significant gains and theyre up by over 5 and some of this is tied into the fact that they did inject 4 of the gdp in response of the Coronavirus Impact there if you take a look at the australian markets and it is showing a flat open and at the same time, we have been following on from what the u. S. Futures have been showing and we do have the reset coming through in terms of the futures so they could base significant upside coming from the australian markets and the only real downside impact that we are lucky to see is because the u. S. Prices falling and perhaps the australian markets might see some markets. Full coverage of the asia open as part of the cnbc special report at 7 00 p. M. Eastern time now lets talk about the markets and more on the setup and if Karen Finerman is doing any buying today, karen, its good to have you on the phone again did you do any buying today . I didnt do any buying today. Im always looking to do buying. I thought there was a lot to like about today the way the markets recovered from being lower in the morning and staid up the rest of the day and it was also a lot not to like you talked about the credit markets and the lqd and the Investment Grade, that traded terribly and that concerns me a little there is a term that liquidity isnt a financial term its id love to buy disney and that didnt trade well today theyre in for some pain and its on my list. Its a Great Company and googles first and starbucks didnt trade well with the retailing and mall closings and the mall reits traded horribly which isnt surprising and the highquality names and thats what im looking for, home depot, google and disney will probably going to go lower you look at maul rell reits social distancing, and at the same time well haveretailers who are going to go under. If they follow chapter 9 rather than chapter 11 and get out of their leases in any way they can, and these small reits in your mind, should be avoided right now. Right. I think youll have tenants who just arent going pay and even if they stay in business theyre just not going to pay and if they liquidate they can get out of those obligations, but simon is the premiere name, but the whole space and you will have that for commercial tenants, too, i think, so those are all doing terribly and where nato bounced a buck today and thats down 50 and its got a lot of new york exposure. I dont know whats going to happen there im always lucky to buy and if i had one thing to buy it would be google i feel like dan had mentioned earlier and i watched the show about the higher market and very defensible position and extraordinary Balance Sheets and having liquidity is key, and they all do. Quickly there were things you didnt like about this market today we need some decent news what did you like about the market today, careen ido like that it came back with the tuesday turnaround and i like the administration absolutely seems all in on doing whatever they can. Fiscal stimulus and doing with the fiscal and monetary, i think theyre all in Karen Finerman joining us by phone. We appreciate it, karen. Be well. Thank you very much. All right. So because things are so stressful every day now were going to try when we can to end the show with some good Economic News or good market news or at least, i guess, what passes as good news these days so lets kick it off with this, and i was posteding about it last night on the twirt, but lets show you looking at traffic patterns in shanghai, china, and for that were using tomtoms Traffic Congestion index it looked at it over seven days and compares it to next year the same serve days over the year. The blue is the last seven days and the orange is how it looked last year, precovid19 and it was fairly normal minus the trade war. Now look at what were seeing. The line between the blue and the orange is getting closer in other words, shanghai seem, at least monday through friday, to be getting back to assemblance of normalcy during the workweek the weekend, the big dropoff there, still perhaps a better thing to come. Mad starts now my mission is simple to make you money. Im here to level Playing Field for all investors. Mad money starts now hey. Im cramer welcome to mad money before we start, well go to steve leeszman with some breaking news hello . Steve, its jim youve got me. You