States to withhold unemployment claims data. It is friday, march 20, 2020 good morning welcome. Im Morgan Brennan live at cnbc headquarters we begin with breaking news. Yesterdays gains. Futures pointing to a higher open with the dow pointing to open up over 844 s p posed to open at 98 and the nasdaq now up 358. This is after the futures market opened last night in the red weve seen a reversal there. It is the first day of a less than 1 move in trading in 14 trading sessions so it gives you an idea of how much volatility has ebbed. The s p ending up about half a percent above 2,400. Similar for the dow, which closed back about 20,000 barring any historic move, the dow does remain on pace for the worst Weekly Performance since the financial crisis when it fell more than 18 in a single week s p and nasdaq tracking for the worse week since february. All three still trading well below 20 from recent 52week highs we reached just last month. Taking a look at the bond market we are seeing investors buy back into treasuries, the 10year note 1. 042 . The dollar is on track for the best week since the 08 financial crisis down a little bit. Strong week in general this is coming off of crude i should say is coming off the best session ever but on pace for the worse month it has seen. Wti is up 7. 7 back up to 27. 17 after trading as low as 20 and change earlier this week. We saw similar move for brent. Lets check asia japan is closed for holiday but the rest of the region, open for business we have seen, as you can see on that map a lot of green today green for major averages in asia looking at what is happening in early trade in europe. A very similar story there as well isnt it nice to see green on your green you can see there we have 5 gains. The ftse is up 5. 8 . The cac as well. Steve sedgwick is still roaming the stree the streets of london. Good morning. Extraordinary times. It was only nine days ago, i was talking about the uk budget. Talking about the measures earlier this week, we saw an extra 350 pounds of stimulus thrown at the economy. Yesterday, we had an even lower, bigger rate cut. 1 of 1 right over my shoulder is the bank of england, they cut rates to. 1 that is the lowest level in 25 years. An extra 200 pounds of guilt purchases and bonds. Saying the measures to contain covid19 will result in an eek no ammic shock but they hope it will be short and temporary. We heard yesterday from boris johnson. He tried to put a time scale on the peek of this crisis saying the uk can turn the tide of this in 12 weeks. Is that bold, well see. Back to you. Looking at the shot behind you. I do see some people behind you. In general, what is it like . Youve been roaming the streets of london reporting for us give us a sense of how busy or not busy it is in this major city im going to talk about history. My grandfather was working here in 190 in the height of the blitz. He said the peoples spirit is very good. Jumping to today, i think the spirits are good most people now being forced to homework for their own safety for the foreseeable future there is a bit of activity around 10 of the numbers we normally see this is peek time. We are 9 00 in the heart of the city the bank of england, the old stock exchange, the mayors mansion house. So we are right not heart of the financial business of london the people that are around are in very, very good spirits there has been all these stories about panic in the super markets, toilet rolls and hand sanitizer. I have been to a few stores and i could find those things so i think the panic has sub sized a little bit just amazing. An empty times square in new york and images of empty canals in italy thank you for the latest back to the outbreak, the death toll now tops 10,000 starting in california where the governor has issued a stayat home order it requires all dinein restaurants, bars, clubs, gyms to close they saw an increase in cases in the last 24 hours. Carnival is up with a spike. Unexpectedly posting results adjusted results missed estimates as the pandemic forced it to suspend sailings advanced bookings are also down compared to a year ago turning to boeing the company leaning towards a temporary work stoppage at its factories. This follows a similar move by airbus and former ui ambassador said she is exiting her role on the board of directors amid the coronavirus and 737 max crisis reports are she may not be the only lawmaker that opposes boeing getting a bailout a key topic and will inspire a lot of debate. Rahel, thank you back to the markets. Coronavirus volatility mixed now. Pointing to modest gains at the open dorey, thank you for being with us today glad to be here the fact that we are, at least right now. I know there is only so much stock you can hold in futures market given where we are right now we are posed for backtoback gains. What does that signal to you thats a really good sign the market is looking to try to find a bottom here f. We could put backtoback gains here. That is a really good sign the market has to work in a see kwental way. If we can get a 10year and a gold sector, then the market will try to find the bottom. I realize there is so much uncertain here you are starting to have economists from bank of america and jp morgan come out and call for 12 and 14 contractions. We dont know how long this will hold for the virus and the infection curve to bring that down, what that will take and what that will look like that being said, the fact that the s p is off 29 since its highs a month ago, what would you be looking for what would signal that we are close to the bottom . We have convinced ourselves, it is not going to be a v, it is going to be a u. We just dont know how long. We dont know how long it will go if it will burn off in the summer or the fall we got to see a peek and then see what the mortality rate is we get forecast of 3,000 and then we get 6 million from some doctors that squares everyone. Once we get a handle on that, the market will focus on that. That will get us a handle on the duration of the recession and how long well be in it. Then the market can feel and find itself. It will bounce along a range on the bottom here. In the meantime, people need to stay with cash if people want to dive in a little bit as the market gets uncertainty, if it goes up a little bit, thats okay. Are you wading in yes what are you buying, quickly . I like banks the most they have been sold off. They are not the source of the crisis the source is the virus and consumer banks were part of the problem previously i look for them to be part of the solution that doesnt mean some might not get hit and have losses. They have record levels of capital and they are selling at depression level prices. Thank you for joining us. When we come back p the old call when it comes to the national gasoline average we go to italy where the death toll has surpassed that of china. Check out the week to date laggards boeing down, chef ron, home depot, united tech and travelers. All down by double digits. We are back after this want to freshen your home without using heavy, overwhelming scents . Try febreze one; it eliminates odors with no heavy perfumes, so you can feel good about using it in your home. For a light, naturalsmelling freshness, try febreze one. Welcome back inter shall Continental Hotels says the demand is at the lowest levels ever seen the owner expects global revenue per available room to be down about 60 this month the company is pulling its guidance for the year and deferring on any further decisions on payouts for now and cutting about 100 million in Capital Spending ener energy is on the rebound again. Surging. Despite the rally. The sector is still down 60 u. S. Gasoline prices expected to fall according to my next guest patrick from gas buddy. Com we mentioned 35 to 50 cents. I think it will take a few weeks. You mention the turn around. Still, the dynamics there if the u. S. Does cut those. That doesnt mean people will stop hitting the roads we could see it go further the bottom at this point could be a National Average that breaks multidecade lows. If we get to 1. 49, we will blow 2016 and Great Recession lows out of the water we have a long way to go 20 states now have an average gas price under 2 a gallon but we have a long way to go listening to you talk about the possibility of 1. 49 a gallon that sounds great filg up my tank but if im not leaving my house. Given the fact that low gas prices have always been stim tiff it is a tease for americans that know they should be hunkering down unfortunately, low gas prices in this case are not a healthy thing. It is a sign of a depressed economy. People are watching this they are filling up. Reporting a rise in supply last week that is not unusual. As people hunker down, they make a run on certain items they try to fill their tanks but now that you see people staying home and people locking down youll start to see gasoline plummet and should really accelerate on the side affects as you see the numbers fall, what does that do to the incentive to keep making more . At least for now. Last week, we had a period where that was negative. Meaning that gasoline was less than the oil that would run into the facility if you see that happening, do expect refineries to cut runs. We are already seeing pipelines cut back scaling for less flowing through those pipelines. There is anticipation there will be run cuts to keep a floor on crisis really, we are on unchartered territory. We dont know how Many Americans will be working from home and staying at home and how it will get worse . Any chance we could see gas stations go out of business . Certainly not gas stations. They are in a rare position hereof doing extremely well. They are passing along the decreases much slower. Gas station margins are through the roof thank you for joining us. Still on deck. Initial jobless claims set to make a record but investors wont know the half of it. Announcer todays big number, 39 . Thats how far the russell 2000 has fallen from its alltime closing high despite yesterdays gain, the index is still on pace for its fifth straight negative week d mf 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. Doprevagen is the number oneild mempharmacistrecommendeding . So thank you. Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Can we go get some ice cream . Alright, we gotta stop here first. From smarter atms, to after hours video tellers comcast business is connecting thousands of banks to technology that turns everyday transactions into extraordinary experiences. Hi there. How are you . Do you have any lollipops in there . laughing no, sorry. Were helping all kinds of businesses go beyond customer expectations. How can we help you . Italys death toll from the coronavirus appears to have overtaken that of china. The u. S. State Department Issues the highest level travel advisory americans to avoid all International Travel due to the outbreak joining us on the news line from milan in the region that has been the epicenter for the coronavirus outbreak in italy. Caller good morning. We are in the epicenter of the most hit region in the host hit country now. Yesterday was the worst day, by far with 427 deaths registered in a 24hour period and 4,500 new cases totally over 41,000 contagions not everyone is being tested in the region i am. If you dont have symptoms or trouble breathing, you are asked to stay home and isolate yourself the deadline for early april has been set aside the government has announced it will last a couple more weeks. What is important is what is coming out next week, early next week, the numbers will be crucial to see if the road are backed up by actual results. The hope is that the measures will impact the curve of the outbreak the message that more is needed, we will do more. There are a few more days before we know whether this approach weve had in italy will work for now, there is a lot of pressure here. Back to you, marorgan. Hopefully this works and we start to see the curve come down you are talking strict quarantines. Anything that is not essential, people are told to stay home right now. Here in the u. S. , we are very interested in what the fiscal response looks like. Is it a similar situation playing out in italy it absolutely is. We have seen some temporarily layoffs. Weve seen factories continue to produce but at a lot lower pace. Offices are trying to keep functioning but at a lower pace. The government has laid out a 25 billion stimulus package hopefully that will be a help but the economy will be very hit. The Prime Minister now has a 70 approval rating, which is absolutely unheard of here in italy. He is working on the results to get the eu to step in and use more measures like a common bond to try to help europe. But, yes, there is a lot of economic concern as this outbreak continues thank you for bringing us the latest from milan. Heading to break, we look at the biggest s p laggards for the week coty, Alliance Data systems, noble energy, discovery, mgm all down cnbc special coverage of the coronavirus outbreak will continue after this. Stay with us it nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. 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. In the Transportation Industry without knowing firsthandness the unique challenges in that sector . Coming out here, seeing the infrastructure firsthand, we can make better informed investment decisions. Thats why i go beyond the numbers. 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. 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. Markets trying to end another volatile week on a positive note. Lawmakers prepare to create a massive coronavirus stimulus package. The latest and the push back it is facing. The Trump Administration asking states to delay unemployment figures. It is friday, march 20, 2020 this is cnbc welcome back. Im Morgan Brennan live. We start with stocks looking to extend yesterdays gains right now, futures are pointing to a higher open opening up 751 points right now. S p 82 and nasdaq set to open 352 points higher. It could be two backtoback days of gains. After the s p 500 of its first move in 14 days of trading sessions the first Weekly Performance since the financial crisis when it fell more than 18 in a single week. S p and nasdaq trading at the worst since february and taking a look at the bond Market Investors buying there again today, with the 10year note yield moving lower. Still above 1 1. 045 is your level there checking the dollar as well. Weve seen some weakening in the dollar index against other major currencies still, it is on track since the 08 crisis crude has been a big mover it is coming off its single best session ever from a percentage point standpoint wti crude is up almost 8 . 27. 21. That april contract is set to expire later this week we are on pace for crude the worst month in History Senate ready for a debate today on the stimulus package. It is already seeing push back from democrats eamon is with us good morning. Some push back from democrats. Some republicans unhappy with it this was the proposal worked out by mnuchin theyll be weighing in on it later today. Here is how direct Cash Payments will work for most americans there is a question of means testing. Who gets these and up to what income level we have these details. Take a look at this graphic which shows ultimaty under 75 annual income, those will be the ones eligible for 1,200 in that 75,000 to 99,000 range, theyll get less than 1,200 over 99,000, above that, americans will get nothing this is really income support for people under 100,000 a year in annual income thats the way republicans envision that right now, the leadership right now the other element of this, it will be very important, is the idea of equity stakes in companies that need bailout or support. The president was asked about that and here is how he answered it do you support the idea of the government taking an equity stake in Certain Companies i do. I really do. Which companies im not going to stay so the president there asked which companies the United States government should take an equity stake in and the president not saying any specific names there this will be an issue. Mcconnell suggested he supports the idea of taxpayers getting the upside here. Sort of the model we saw in 2008, 2009 time frame for taxpayers to be repaid or own a share of these companies all of that discussion on capitol hill today they expect to vote as soon as they can not sure when that will happen sounds like another busy day. Some is of that sounds kind of familiar two republican lawmakers facing scrutiny following the report that they sold millions in stock on the news of the coronavirus outbreak this is the kind of thing that makes americans really upset. But it is not clear it is illegal. One is richard burr. Hes the chairman of Senate IntelligenceCommittee Public records indicate on february 13, he told somewhere between a half million and 1. 6 million in stock held by him and his wife jointly that is the kind of thing that really upsets people when they see it his office put out a statement saying he did nothing wrong here he sold all of the stock before any of the volatility happened in the markets look, this is significant percentage of his personal wealth he told on february 13 at a time he was suggesting publicly that the United States was well positioned to handle any pandemic but at a time he was receiving classified intelligence of how damaging this could be. Aoc, the congresswoman on the left has already called for burr to redesign. Hell come under increasing pressure for this and so will any other lawmakers. Sounds like one of those examples where lawmakers get to do things or are not subject to the same rules as the rest of the american public. Well see how the rest of that plays out and future legislation. Eamon jafers, sounds like you have a busy day. The Trump Administration is asking state labor officials to not release unemployment claims and only use generalites already calling for claims to cries at an historically high rate possibly as much as three times more than the previous record weekly gain after yesterdays spike from 211,000 to 281,000 in one week alone joining me now on the news line, from Washington Crossing advisors, chad morganlander. How much worse could this get in terms of these numbers especially as we are getting this qualitative data and reports that quite a number of Companies Across a number of industries are having to let work forces go caller over the course of the next several months, the data that will come in from the United States and across the globe is going to be highly disturbing in regards to a major slow down in the u. S. Economy and Global Economy with that said, we believe investors have to take a look out into 2021 into 2022. We would be buyers of this market and slowly start to layer in risk at this cycle. That is key im going to hone in on you on that youve been pretty cautious on this to hear you say you would be a buyer here but it depends on the time line. What specifically would you or are you buying right now caller we are looking across all sectors. Theyve all come down quite a bit. We would take a focus on consumer staples, health care, selective industrials. Our focus now is that we are looking at companies that have very little debt on their balance sheet. As well as they have to be consistent with their product line and client base overall, when you are watching this market come down, many of the companies in distress are companies that have to rely on the credit market. As you see this unfold, those companies are the ones that are suffering the most do you feel like we are close to a bottom or that weve sold off so much there is value to be had on a longer term basis caller the market could go down another 15 but we believe that if investors look at the on 12 months, you can buy very good Quality Companies that have this broad quality to them. The critical word there, morgan, is quality that you could do very well over the next several years yes, the credit markets are right now in flux. The Municipal Bond market is fluctuating. This is the time now to layer on the risk these are the opportunities now that you did not have 6 to 12 months ago chad, what are the key data points you are watching right now . Jobless claims coronavirus numbers we are getting daily . What else . Caller i would be watching the thursday initial jobless claim numbers. Yes, they will look horrific i would look at the gdp expectations that will come out and do not get rattled by a negative number. Not only here in the United States and across the globe. I believe that has been priced into the risk market yes we are seeing big negative forecasts for q2 thank you. Coming up, a number of Companies Look to provide Financial Relief amid the coronavirus outbreak details on the steps they are taking plus, a rapid rise of people working from home. The risk employers are facing as a result when cnbc returns do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, 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. Welcome back californias govern issuing a statewide stayathome order asking residents to leave their homes only when necessary. Half of the states 25. 5 million residents are expected to contract the virus rahel solomon has the latest so walmart is ramping up hiring the company is looking to add roughly 150,000 new workers in warehouses and stores through the end of may and plans to pay current workers bonuses. Walmart also plans to start drivethru Virus Testing in parking lots of the krchicago stores bank of america is offering requests for deferring mortgages, Small Business and auto loans as well mcdonalds is offering relief to franchisees they may wave rent and sfervice fees for this month and next mcdonalds new ceo will have more on the companys Coronavirus Response hell join the team for an exclusive interview at 3 00 p. M. Thank you. Amid the ongoing coronavirus outbreak, the amount of Companies Working from home as companies try to keep their operations going, including cnbc the boom is resulting in rising risks. Cnbcs john ford joins us with more on this hey, jon good morning. This is early for you and me to be doing this. I miss seeing you in person so im excited i am working from home to report on working from home. Cnbc has an executive Council Group across various industries and companies of different sizes. We like to ask them a series of questions to get a sense of how they are handling business and plans for the future we are asking about the coronavirus and really got some interesting anecdote al data abu how they are handling it just over 30 responded more than half said three quarters or more of their work force is now working from home for the foreseeable future also asking whether they had stress tested their Technology Systems for a crisis like this where such significant percentage of the work force would be working from home one way to look at it is that the majority said they had stress tested this, 53 plus percent. Actually 40 majority said they had not stress tested it. But a majority said that they had. We asked also if they had diverted resources to try to make this more palatable for people to be working from home twothirds said that they had diverted resources we have been talking about the challenges security wise associated with this level of work from home well continue to talk about that as well jon, in looking at those results and conversations weve had on our air in recent weeks and Tech Companies that could potentially stand to benefit we are getting reports of shortages of laptops now some virtual platforms across Different Industries get inundated with traffic and even collapse right now what are the unexpected or hidden costs associated with the shift not just for the companies but those entities that are supplying those companies . Well, their real networking stresses right now Virtual Private Networks they are generally not apportioned in a way expecting so many people to be working remotely i know a number of people are trying to ramp up their Home Broadband level to handle video calling. Perhaps they are even streaming live on National Broadcast networks that is an important consideration. At the same time, there is a sense that this new era of collaboration we are getting into is getting more focus microsoft has talked about microsoft teams, that component of office 365 that competes with slack. Just the volume they are seeing on that. 900 million hours it might be hours. 900 million hours, i believe, a day of people trying to interact on that platform there has been quite a ramp in the amount of usage. Slack has also reported a huge increase in the number of paid users. Jon, good to see you this morning. Ill see you later as well thank you for bringing the results on working from home while working from home. On deck, stocks with a dismadi dismal week. As Global Markets continue to face these wild swings, you can always watch or listen to us live or on the go on the cnbc app. Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. woman no matter what business you are in, Digital Transformation never stops. Verizon keeps business ready for whats next. man we weave security into their business. second man virtualize their operations. third man and could even build ai into their customer experiences. We also keep them ready for the next big opportunity. Like 5g. woman where machines could talk to each other and expertise could go anywhere. woman when it comes to Digital Transformation, verizon keeps business ready. sensei a live bookkeeper quickbooks for me. Tomize live bookkeeper okay, youre all set up. sensei thanks that was my business gi, this ones casual. vo get set up right with a live bookkeeper with intuit quickbooks. Welcome back u. S. Markets will try to make it a backtoback positive session today. Futures now are pointing to a higher open. It has been another wild week for wall street. S p 500 closing up a half a percent. What may seem like relative relief after extreme volatility. It has taken the s p well, so, 14 sessions to have a less than 1 day. To give you an idea here meantime, just getting a look at weektodate numbers here. The dow is poised to finish the week down 13 . It would be on track for the biggest weekly lost since the financial crisis the s p is posed to finish down. Nasdaq currently weektodate down 9 . If you take a look at the biggest laggards in the s p, coty is on track for a 52 loss. Alliance data systems, noble energy, synchrony financials if you take a look at the moves more broadly energy, surprisingly given the continued collapse until yesterday we have seen in crude Prices Energy has been the worst down another 20 . Real estate down 18 financials, industrials and Even Technology is down 11 week to date in terms of the relative outperformers. Still slower on the week joining me now on the cnbc news line, seema shaw, chief strategist at principal global investors. Thank you for being with us. Caller my pleasure i broke down the dramatic margins we are seeing. When you look at the higher levels or dramatic selloff we are seeing in stocks and sectors more broadly, is there anything that looks attractive right now . I think it is a little bit too early. Until we see the rates starting to plateau in the u. S. , it may be too early in terms of the data you are watching more closely right now especially with having another two weeks until earnings focusing on jobless claims and numbers that would spike what are you watching . As you mentioned, jobless claims will be the leading indicator. We already know it will be severe the other thing is to keep an eye on credit weve never expected the recession now that youve seen that move out. We didnt think we were anywhere close to that. That was deleveraging. If we were to see the credit blowout and approach those levels, i dont expect to see that but if we did, we will start to see those imbalances try to move through those. With some supply and demand destruction. Certainly, there has been focus on liquidity in general. In moves we are seeing with the dollar this week, your thoughts. We have a traditional safe haven. But when they are trying to get rid of everything, they need cash your typical safe haven is one that will survive through all of this unfortunately, its going to be a bad impact ideal, we are going to see this and we get an idea that people feel a little more confident about the system that would be a positive sign if we could see a weakness on the cllar for a few days. Nbc continuing breaking market coverage is going to continue right after this. Wall street whiplash futures pointing to a higher open the dow is now down more than 13 this week. The worst drop since the financial crisis but up probably about 1,700 or 1,800 points from the ackman lows. California issuing an order to stay home and washington working on relief. It is friday, march 20, 2020 you are watching cnbcs special coverage of the pandemic good morning welcome to cnbc. Im joe kernen eventually along with becky quick and Andrew Ross Sorkin there is a reason im at the nasdaq we can keep this shot up we have the whims of modern Day Technology in full swing im here u. S. Equities are rebounding interesting because yesterday, we managed to eek out 100plus point gain after it got a little dicey and a little good. We were up 00 or 400 points at a time this enit wa