Areas. This is wednesday, march 18, 2020 and our special coverage of the coronavirus outbreak begins right now. Good morning and welcome im Morgan Brennan u. S. Stock futures at a down open the Dow Jones Industrial average is indicated to open down more than 1,000, the s p is down 120. If we were to open right now and the nasdaq down 386. Looking at the major etfs that are tracking remember, these are not subject to any of those limit down figures which paused dow etf is down nearly 6 in the premarket s p 500 is down almost 6 . The qqq is down almost 5 . This comes after an almost 1,000point rally yesterday. Recouping the losses with he saw on monday after the massive new stimulus in the face of the coronavirus outbreak and slowing u. S. Economy hopes around stimulus. Boosting bond yields we saw some big moves in the treasuries the 10year back above 1 at 1. 95 . We have seen a steepening of the curve. Check out moves of oil as well wti now at its lowest level since early 2016 trading at 26. 29 also we have more on all of this first, getting to the action overseas red across the board in asia not much earlier in trading either karen has the latest morgan, thank you the japanese stock market first up the japanese yen has been a safe haven. For the stock market continuously falling 16,726 the new handle. The lowest level for this year so far the market in china slightly contained. Down 1. 8 in shanghai the australia has been a huge swing. Tracking on the wall street action and hong kong down 4. 1 the Europe Market has been very weak we are trading at 3 giving back all the gains and then we are also looking at stimulus packages we have trillions in the states. When it comes to spain, 200 billion and france with a package of 45 billion euros and also ready to nationalize individual companies if required we are seeing improvement today and patches of green te telecons doing very well stockpiling. What is that doing Retail Stocks are doing well marks and spencer in the uk are trading high but still selling on some of those travel names. Thank you to the coronavirus outbreak now where the u. S. Death toll with the virus spreading to all 50 states. Rahel has the latest good morning. Along with cutting regulations with testing, the white house is hoping to fight the outbreak with extraordinary stimulus. Pitching to lawmakers that could be worth as much as 1. 2 trillion including sending checks directly to americans saying without federal action, the u. S. Could skyrocket to 20 . The Federal Reserve adding another Liquidity Program in an effort to keep money flowing freely it has caught a primary deal the new offering provides shortterm funding in the financial crisis, the program provided 9 trillion to banks. Irs will postpone the april 15 tax deadline giving them an extra 90 days to pay the 2019 bills. That goes for anyone who owes 1 million or less. You still need to file by april 15 but an extra 90 days to pay key point there thank you for that well see you later in the show as the headlines and the developments continue. It appears, we are in for another volatile day on wall street the dow gaining more than 1,000 points after plunging nearly 3,000 on monday. The dow is down more than 16 . On pace for its worst month since october 1987 joining us on the phone now, our cnbc contributor, jim iuorio thank you for being with us. In terms of the market action, and i realize futures can be very volatile and dont set us up for what the normal session can look like. What are you watching for today . Caller there are two different takeaways, we saw a spike in the dollar and that spooked people overnight today, the dollar has gone above 100 treasury is lower. That will scare some people. There are certain things people want to count on the fact that treasury prices are lower has plenty of people scared maybe it is the people that think this massive package coming along is going to spur things right now, we are probably going to look at near those 2,300 lows the Christmas Eve from 2018. Im hoping those hold. If they dont, we head down to 2,100. We have seen big moves there and in the dollar as well. The fact that these different markets arent correlated to each other and trading in the types of relationships we have historically seen, what does that tell you about here think about it in terms of gold gold was supposed to be some sort of safe haven it has been absolutely revealed as an imposture during this whole thing. Really . That kind of broke. We believed in it. Now since then, the stocks are down a bunch and gold is down as well if you knock gold off the list and then you are looking at the dollar and the treasuries. If there is something that calls into question whether treasuries are on that list, thats the bell weather that is something i like to believe in that could cause some real fear. I want to get your thoughts on the debate. At first, should the markets be closing given everything we are seeing and the big moves and yesterday with the Coronavirus Task force update with the treasury secretary pushing back on that. Then saying we could see reduced trading hours. Would that be a good thing or cause confusion . I think it causes confusion and panic. What a quick whip around for him. When people see Movement Like that, that starts to scare them. I think and im a futures guy forever. Weve had almost around the clock access for years i think the greater the access, the better it is there has been a couple different times when occcircuit breakers have worked im more for markets being open and accessible i dont think it is a good idea to close them. When this is panic driven, you dont want to cause more panic i want to get your thoughts on crude and how the oil collapse we have brent crude with a 28 handle right now how much that is affecting the equity markets and how much pain that could enact as well from that sunday night, at the time, i thought this was going to be the run of the mill stock correction but when it went with the saudis and the russians, it through a different curveball into it. From february 2016, 26 was the low in crude the president was bugging the saudis to turn it on, once they did full blast, im not sure we understood what it would be. So, i would love to see that hold if it breaks 20, i think that causes even more panic and that is more far away. Nothing seems far away we routinely have 5 moves in stocks yes huge moves thank you for joining us when we come back, shares of fedex slipping deeper into the red. Top ranked industry analyst will join me next on what you need to know about that stock with shares down 2 plus a wild ride for boeing as the Company Seeks billions in aid. Former American Airlines ceo bob crandall is coming up. Cnbc special market coverage is back after this. And that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Every time it takes care of something for us, we celebrate. How often does that. Got it. Servicenow the smarter way to workflow. Welcome back. Dow futures with another drop at the open the biggest ledgers. Boeing, caterpillar and goldman sach welcome back check out shares of fedex as well another name in the red. Initially popped after the Company Reported Third Quarter earnings in line with revenues the company is lower this morning as fedex has pulled its 2020 guidance with impact due to the coronavirus and will look to cut costs. Fedex has asked the government for liquidity support. Lets go to our guest now on the news line. Lowering his price target on the stock this morning ken, thanks for being with us. Caller good morning. The first time this company has pulled its guidance. How notable is that . This is a company that has lowered its guidance even before we saw the coronavirus it is significant it pulled estimates and this Economic Outlook and the capital plan it tells you the kind of market that we are in and the unknowns Going Forward. The quarter itself, it missed our estimates a bid. What is going on with the covid19 in asia and the impact it had in the end of the quarter. The unknowns in europe and the u. S. And the speed with which everything is happening day by day was really the impact at its outlook. Fedex earnings were so key because you are talking about actual real time looks at how things look around the world a look at industrial activity and e commerce as people essentially quarantine and are not going out as much. Fed exhas been retiring and idling quite a number of aircraft, letting people go and offering pay packages. Offering express and ground operations starting to be merged as well. How much further can it go during these costs it is very cap x and capital expensive to begin with. Two things. One is when you go back to the Great Recession and look at how quickly can they cut costs talking about a third being semiverible and variable and fixed costs. You cant cut that fast. They are trying to retire old aircraft as fast as they plan to do that and cut traffic to asia, they kept those planes that were down post lunar new year, theyve brought those back they are using their aircraft to keep that demand to replenish inventories. You are seeing post covid19, the return to business the concern now is the deceleration in the u. S. And european economy, which is really spreading fast. There is a lot of idea of the bailout upwards of 50 billion could this include the Cargo Airlines like fedex . Caller we were a bit surprised on the call last night that that was one of the things they were surprised about. They said they were part of the a 4 a group that provides services to the government so maybe that was related. That is a surprise if they are asking for funds, given Free Cash Flow that gives 3 million of cash flow, that they need to make moves for an extended period of time if they are going to be solely reliant on that. I know you cover more than just fed ex. When you look at freight, whether it is truck carriers and airlines what is the data telling us right now and are there places for investors to be positioned or is it an area to stay away from caller good question we did a survey that had been holding in a range for the past six months it has really tailed off the alltime low on friday that is a concern on shippers outlook that transport stocks have fallen 28 year to date more than the s p, which is down 23 . Rail car loads are down. Theyve held that level. The data has not fallen apart yet on the actual volumes that are moving certainly from a truck outlook they are leading where shippers are nervous in terms of the demand Going Forward thank you that is one to watch closely still on deck, tackling the coronavirus testing kit shortage one company that just got approval to ship its laps across the u. S. Will it be enough . Stay tuned announcer todays big number, 48. 5 . That is how much wti crude has tumbled in the past month. Now at its lowest level since february 2016 and its worst month ever memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Yes im stuck in the middle with you, no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its the most open and secure public cloud for business. It can manage all your apps and data from anywhere. So it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. Without getting in your way. Welcome back boeing is looking for 60 billion of government aid for the industry not just the company but for its money suppliers. Looking for support for public and private sources including loan guarantees. Is now dealing with a plunge in air travel demand amid the coronavirus outbreak shares are down sharply premarket at 13 . If you factor that in as recent days since march 12, shares are down 43 still to come, no end to the volatility in sight. Sectors to watch and names that uld be a bargain well be back after this the markets roller coaster continues. The Trump Administration mulls a 1 trillion stimulus package amid the outbreak. We are live with the details plus, the president throws his support behind u. S. Airlines we are looking to help companies such as the Airline Industry, within the Airline Industry well be doing that. This is not their fault. Former American Airline ceo weighs in. It is tuesday. No, it is not. It is wednesday, march 18, 2020. This is cnbc it has been so busy this week already and it is just wednesday. Welcome back im Morgan Brennan live at cnbc headquarters we continue to follow u. S. Stock at a sharply lower open. Showing no signs of abating. To get a check on the futures contracts at this moment in time, the dow is indicated to open down more than 1,000. The s p indicated to open down 120. Well turn attention to the etfs that are tracking that will get a better sense of where we might open those limits down. Remember these are not subject to any of those figures. To get a sense here, the dia is down nearly 6 the spy is down and the qqq is down as well this comes after a more than 1,000point rally yesterday in the face of the u. S. Slow down hopes around stimulus boosting bond yields. The 10year yield is back above 1 for the first time and moving quickly to 1. 216 now. Check out the historic moves in oil. Wti is now at its lowest level 25. 78. We just broke through 26 ice brent is at 28 a barrel right now. Lets look at the action overseas red and Early Morning trade now. Karen tso with the latest for us morgan, thank you Global Equities are not stabilizing. Japanese stocks reaching for lows of 2020 still down 1. 7 . More selling in china. Australia, a rough session to catch a falling knife is the phrase that comes to mind. The 6. 4 ripped off the market level. 4. 1 for hong kong looking at the european markets, 4. 5 coming off the ftse we have been lower intradau on the european stock market. A stimulus package not helping again. The dax was one of the weakest german stocks sliding 4. 6 also talking about nationalizing companies. Italian stocks down more than 1 some sectors have been hit harder than others look at that green, telecons and defensive safehaven. Investors are looking at the work from home play. We are back to you to the white house now looking for what could be the largest Financial Aid package ever up to 1. 2 trillion in the face of what looks like almost certain recession. Looking for direct payments to u. S. Citizens of up to 1,000 each this is after err wiarlier aid packages fall short. Well go now to eamon. Right we dont know what industries will get the support this is a big change in the 24 hours previous the white house now supporting those direct payments to americans across the country they are also talking about an 850 billion to 1 trillion stimulus bill that they want to get moving on the capitol hill after the Senate Passes that phase two bill the senate is hoping to lock in a vote for the house bill today. They dont have that scheduled just yet the senators are working on that larger package the treasury secretary pitched to them on capitol hill hill on that republican lunch, mnuchin really raised eyebrows with scenarios that could happen with action or without action by congress one was a 20 unemployment number for the United States if no action is taken that is a depression level figure an enormous number but mnuchin saying if congress does not act here, this is where we could end up. This is one of many scenarios and mnuchin doesnt believe this is where we would end up ultimaty thats the worst Case Scenario yesterday on capitol hill said how are we going to pay for this, he said dont worry about that right now this is what he said different times will fix the deficit. This is not the time to worry about it this is impacting hardworking americans. Thats when the government has to step up well wait to see where the senate ends up on this there is a sense of urgency to get senators to abandon some of theirpolitical and ideological considerations and vote for this thing while there is still time. Time is of the essence. Clearly there is bipartisan support for the stimulus how quickly could we see a big trillion dollar plus stimulus make its way through the market . If everyone is on board, congress will move fast. The question is if they can get everybody on board or not. Thats why he was using that 20 figure to say, look, we are talking about Great Depression levels that puts the ownness on congress to do anything. Talking to senate aids last night who said theyve got their fingers crossed but they wont be able to heard cats and get everyone together on this. Thank you for the latest. The fda announcing new, quote, unprecedented efforts to get new covid19 tests to the public one big kinner is code diagnostics. The first u. S. Company to obtain u. S. Approval of the covid19 test kits. Now going to our guest thank you for being with us. My pleasure, morgan talk to me about what this change of the fda policy means and specifically what this test does as you said, this is an unprecedented policy by the fda, which enables a commercial provider like codiagnostics to manufacture and distribute tests to lab tos across the united sts under certain circumstances. First, we had a ce marking the first with a ce marking on a covid test that allows us to distribute the test to laboratories to detect the disease. How quickly can you ship these and what does it mean about your ability to test to other parts of the world like europe can you do both . We can do both. In our salt lake facilities, we can do 50,000 a day and up to 2 million tests a week we have the ability to do a good production level the United States has a certain capacity now it is not just the initial test of someone showing signs but once theyve been diagnosed and put into some sort of quarantine, there are some tests that would clear them to go into the public again, right . The whole issue is to have enough tests available so that anyone can be tested who would like to be tested. That number is huge. We could have 140 million americans experience this particular pathogen. It is not just the ones who get it, it is everybody who thinks they might have it or thinks they might be exposed. The number is huge this new policy directive goes a long way towards solving this problem. The fda has to protect the integrity of this process and they have to demand a highquality control as a manufacturer of diagnostics tests, we do not administer that type of overseeing by the fda. This is Serious Business this is peoples lives from our perspective, the fda could have moved a little sooner couldnt have been a lot sooner in keeping with their mandate to control and make sure the quality is given its due in giving it to the public. Thats a key point you make i do wonder now, it really thrusts that into the spotlight. The changes we have seen now given that we are in a crisis, do you expect that to take route to the structural changes to the way Something Like test approvals take place in the future i dont think it will impact the way this is done generally i think it will impact the way the company prepares for the future pandemic like we are currently experiencing with the coronavirus. In the normal course, i think the fda will continue to maintain rigid standards and require a company to have proper validation and such and to submit before the emergency news authorization. It opens it up and breaks the log jam we have been experiencing it goes a long way and will be significant for the country. Thank you for joining us today. Shares of the company are up another 10 premarket theyve been higher in general this week. We will note, it is a microcap market cap value at around 300 million. Thank you. Coming up, new york city mulls dramatic steps to curb the number of cases. And former american ceo breaks down what a final lifeline from the government could mean. And as we go to break, facebooks operating leader tells us that the Company Wants to help Small Businesses we are very close to Small Businesses 140 million use our platform we work with them every day. We heard directly from them that they were in need, very nervous, not able to pay employees and worried their doors will shut. Legendary terrain in telluride, the unparalleled landscape of park city, or the famed peaks of whistler, youve faced the hassle of lugging your gear through the airport. With ship skis, youre just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. With unrivaled pricing, real time tracking ship skis delivers, hassle free. Ship ahead and go catch those first tracks on fresh snow. Ship skis. Your skis. Delivered. 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. I was drowning in credit card debt. Sofi helped me pay off twentythree thousand dollars of credit card debt. They helped me consolidate all of that into one low monthly payment. They make you feel like its an honor for them to help you out. I went from sleepless nights to getting my money right. So thank you. Welcome back the death toll in the u. S. Has now crossed 100 with all 50 states reporting the virus new york City Residents potentially to be stuck in their homes. Considering a shelter in place order prohibiting people to leave home except for, quote, limited circumstances as the city reports more than 100 new cases. New yorks Governor Cuomo dismissing the possibility of that order the big three auto worker unions have voted to Work Together general motors, ford and Fiat Chrysler have agreed to work out a rotating shut down already allowing some employees to work from home. United airlines will slash flights by a shocking 80 as the coronavirus mutes the need for travel reducing flights across u. S. And canada by more than 40 . You can see shares of united are down huge numbers there. Thank you. United is not the only u. S. Airline facing challenges. The white house pledging Financial Aid between 50 and 100 billion this is worse than 9 11 for the Airline Industry, they are almost ground to a halt. The president wants to make sure, although we dont want p emto travel unlesses it critical, we want to maintain the right to have Domestic Travel joining us now, bob crandall former Aaron Airlines ceo. Bob, before we get to those details, the comments by treasury secretary mnuchin that this is worse than 9 11. Is that how you see it caller i think so, morgan. 9 11 was terrible and completely shut down the system for a limited number of days but the public resumed traveling much more rapidly than they have here here people want to stay home because they are afraid of getting sick and b, they dont want to spread the coronavirus to others. This is starting to get some push back. Senate minority leader Chuck Schumer pushing back on it i realize airlines are pushing on things like buy back, et cetera if things get really dire here you are seeing Something Like a force major enacted like with the airlines, the layoffs including with the unionized workers. Is that right . Caller i can understand why schumer and others might push back on the airlines it is the only intercity Transportation System we have. We cannot let all the Major Airlines go bankrupt lets provide that support in the term of long term very low interest or no interest loans. Dont give them the money, lends them the money they need to sustain themselves some of the things you want the airlines to redo you want to say okay, we are going to lend you this money but while youve got it, you cant use any of it to buy back your stock. I dont think youll get any resistance the country as a whole, we have to maintain the industry eventually, when we get a cure for this disease and a way to prevent this disease, people will go back to traveling and we are all going to go back and do some more business does that mean theyll have the liquidity to weather this without a bailout . Caller i dont think so. I havent looked at the numbers but i dont think so how long based on historical behavior and i go back to Something Like 9 11 for example, does it take for people to go back to feeling comfortable . Caller i dont think they are comparable this is a Disease Threat there it was a Terror Threat am i going to go on an airplane and someone blow it out of the sky. Here we have a disease, highly transmittable. If you do not stay away from other people, you are likely to get it you pay if you are old, you are going to get very sick if you you are not old, you can spread it to others. Until we say you can travel without getting sick and endangering yourselves and others, then people are going to stay home. Bob crandall, thank you for your in sights this morning. On deck, futures suggesting another day of steep losses on tap. Strategic wedge partners mark tepper points out the moves you need the Global Markets continue to face these wild swings u wayocan tch live or on the go on the cnbc app. We are back in a moment. Welcome back another turbulent trading day is taking shape the dow looking to open down about 5 the dow could be on track for a move of more than 1,000 points for the 10th time this month alone adding even more volatility to this march joining me to discuss, mark tepper from Strategic Wealth partners thank you for being with me this morning. Thank you for having me what is your take as we go into another volatile trading day . This market is up one day down the next. What we are telling clients now is, the market is already down 25 from its peek. Whether there is a recession or not, the market doesnt care you are in that zip code right now. If you havent sold, i dont think right now is the time to be selling the next year, the next 12 months look like this. If you are following a recession, markets are up 30 to 40 . Up 25 to 30 what well be paying attention to today is which stocks are dragging us down the lowest and helping to smooth things out and they might be positive today clorox has been on fire but if and when this blows over, what happens to clorox . That will blow over. You mention clorox. Are there names you are buying right now . Yes we were running with about 20 cash as we were taking profits and put 75 of that cash to work this week. So we are buying right now one of the things people should consider is more of a bunker down strategy. Clorox will do now but once this blows over, theyll be looking for the gain theyll hold up a little better when this virus is still in full force. It is always darkest for the dawn, dawn dominos, because people will order in active vision, walmart and netflix. For anyone who doesnt like video games, they are going to be binge watching. That is our strategy for these volatile times i like that the s p falls 7 or more, the level will be 23245, that would trigger a 15minute halt weve already seen three of those since monday your take on these halts and what you would say to investors who have not been in this type of environment before . It is a tough situation when we are looking at 5 to 10 moves every single day i had a client in here yesterday looking to do a 401 k roll over. We cant do it on a day when the market is up 6 because he might be out of the market for the next day when it is up another 5 or 6 it is very, very difficult to navigate these times what i will say is that 23. 50, that is the december 2018 low. There should be support at that level. If we fall through that, there is more down side ahead. We could easily go to 2,000 at that point what we are expecting now, we are expecting earnings this year to be at about 140 a share. That is 24. 50. All right, mark thank you for joining us this morning. Cnbc is continuing breaking market coverage will continue after this break you doing okay . Yes. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Ok. Yep. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Xfinity makes moving easy with twohour appointment windows, even on nights and weekends. Go to xfinity. Com moving to get started. U. S. Equity futures plunging into down range again as wall street braces for another day of major losses amid the coronavirus outbreak seeking relief, the Trump Administration working on a 1 trillion stimulus plan and in the corporate world, boeing seeks a 60 billion bailout for the Aerospace Industry and america braces down as life as we know it shuts down sheltering in place, restaurants closing, Las Vegas Casinos closing. This is live coverage of the cnbc markets right now good morning welcome to squawk box here on cnbc we are coming to you live from all over the place today im becky quick along with Andrew Ross Sorkin and joe kernen take a look at futures this morning. If you look at the etfs those show you a little more limit down, everybody is getting used to. That is down by 5 futures are not allowed to exchange below that. Youll see the dow is below that the etf for the dow is indicated down
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