Transcripts For CNBC Closing Bell 20240713

Casino, those are the biggest gainers today. But fears over the virus remain as cases in the u. S. , italy and around the world move higher though the president says he would love to have to country open by easter we are up 1700 points on the dow. Nice for a change. We have a huge lineup of guests coming up. The ceo of cvs health will tell us about the companys hiring spree and Virus Testing plans. Campbells ceo will join us to talk about the supply chain and well discuss the administrations actions thus far with mark short, chief of start to the Vice President. Lets focus in on two of the big stories, kayla has the latest. But first, mike is tracking todays market rally mike, over to you. By the looks of it, its a sturdy rally well scrutinize to see if theres more than anything but a bounce it tells you a couple of things. One is a strong bounce is it doesnt look that dramatic next to the decline on just experience really just a step in that direction of trying to make some distance between the index and the recent lows, but were also back to kind of con tentding with some of these familiar levels we were talking about for weeks such as the december 2018 low. Were now above it in terms of the intraday low back then so weve kind of spent the last week or so trying to figure out the deacceleration in the downside was meaningful. Thats i think where were at. Now take a look at some of the sub sectors of the market. The more aggressive kind of risk seeking areas of o the market have been outperforming the s p for days now, not just today if you look at the high data, more aggressive stock segment of the s p. Thats been lead iing the lusz 000 led for a couple of days i think the tone is somewhere in the zone of what youd like to see, but its h hard to extram late because the strongest rallies to tend to happen in bear phases so you cant say until we get two days of rally, which we havent had for over a month that this is anything, but i think its checking off some of the boxes yeah, and energy and industrials might be the best performing sectors today which kind of speaks to that risk on high beta sectors leading the chart. I guess the other factor today, mike, to point to, is the on going sense that some of the technical Financial Issues that market was having last week seem to have settled down further again today. Whether thats a little bit of a softer dollar or more importantly, less stress in the credit markets particularly in the Investment Grade, i was speaking to one bond trader who said this is the best environment weve seen for weeks in Investment Grade. Hasnt quite reached the junk end yet, but i guess Market Participants can hope that can continue to follow and equities are moving in line with that improvement in credit. For sure. The feds action, many of them this week and last, were really aimed at that market function. Basically headache iing making r you have seemless trading that you can get these liquidity air pockets that freeze up and tighten financial conditions and basically make a problem worse they would been an exacerbating factor on whats going on in the economy and the market needs to function while it wait to see if the economy can come back. Thats part of the equation has been helped. All right mike, see you in a bit meantime in washington, lawmakers continue to negotiate that massive stimulus bill as President Trump holds a call with some big name investors kayla joins us with more what is the update, kayla . Sara, i just got off the phone with the Senior Administration official who said this point, theyre hopeful to have an agreement or solid agreement between all parties involved by the end of today around sunset is what this official said. Now there are still several issues to be hammered out im told one of those is the size and the features of this main Street Lending facility from the Federal Reserve thats going to stand as a compliment to the loans coming out of the Small Business administration. There are details about who will qualify for the loans and what the exact size of the package is that are being worked out then once some of these sticking points are finalized, then negotiators will have to go through every piece of this deal text to make sure that everything checks out the way that they all want it to so it is unlikely from that estimation that we are going to have a vote tonight although in washington, we know that anything can hachl bppen, but a right now, it doesnt feel like thats the case. As far as the american economy, the white house is canvassing major investors to get their take to find out where things stand in the equity and debt markets and what the Federal Reserve and government can do to keep things humming along and moving smoothly. With discussion with white house convened today featured President Trump, Vice President pence and these individuals from wall street. Dan lobe from third point. Steve schwartzman from blackstone robert smith from vista equity jeff spreker from ice and the New York Stock Exchange as well as paul tuesday r jones what the Federal Reserve can do to stop some margin calls and when exactly the economy would be right for reopening. President trump said earlier today that he is targeting april 12th easter for a date that he would like to date for the economy to reopen he told these individuals that it cant be shut for six months although he knows it cant reopen tomorrow. I was just wonderfing how tht sort of new posture from the president is going down in washington with other lawmakers. Certainly here in new york, Governor Cuomo did not sound like you know, he was on board with that idea about reopening the economy. In new york, at least, its all about saving lives, trying to get more hospital beds and ventilators. How are other people reacting to this its a delicate dance to walk, sara i think there are a lot of officials who acknowledge the detriments to peoples psyche and the economy would only worsen the longer that people are in ice laigs President Trump has mentioned this, too. And Governor Cuomo himself said he wants to try to find a solution where you can both protect the Public Health but also get the economy running again. Today, he suggested a potential solution where you would see young people who have had the coronavirus who are positive for the antibodies who have recovered, that they start going back to work to start getting these businesses back up and running again although that would require enough of a Critical Mass of people to have had the coronavirus to then go back and work. I would also mention this april 12th date the president has floated. That runs right up against this deadline that andrew cuomo is suggesting could be the apex of when new yorks cases would hit their highest point. So well see if thats a realistic target or goal to have in place, but certainly its one the markets will be watching closely now. Kayla, thank you. With the dow up 9. 5 , the imf out today forecasting a recession this year at least as bad as during the financial crisis imf chief economist joining us now by phone how did you make an economic prediction with so many and what the disease looks like and its a long in the which is not something for the economy to do. So i think we can based on what weather seen in terms of data coming out of china based on working days and when the economy goes into shutdown this points to it going below zero this year and you know, it could be worse than the Global Financial crisis when are you factoring in when you x pecht economies to get back up and working again because clearly the debate, easter, april 12th not too far away if that happens, would you be changing your forecast for growth with a more optimistic outlook . Our forecast depends on several factor, one of which is length of containment measures the country would be, an estimation of how long this is going to be. Were thinking this economy will be het hit for about a quarter at different points in the year but then if containment measures actually turn out to be effective a as one is hoping, if there are advancements in the medical field but there we should expect to see 2021 be a year when growth goes above trend. But again as we saw, there are a lot there. But you know, the containment is very important. What kind of damage are you looking for in the United States at this point as far as unemployment numbers and gdp declines what we expect in the Second Quarter will be really bad and going to be a tough month. I would expect the u. S. And the area to be in a recession this year based op whats going to happen in this next quarter but again, this is the crisis where its, there is a bigger response and we have seen a lot of this. Much bigger than the Global Financial crisis things could look much better in 2021 a piece of certainty has to do with an emerging developing economy in china at this point, but a big start for epidemic and measures they would have to incur and the stresses they would have to face and would come on with prices x exclouded. There are many factors here, but it should remain here, so some of these economy, it maight tak much longer to come out of this than some of the larger economies. Thank you for joining us on your call today from the imf thank you we are higher by 1800 points on the dow close to 10 with just under 15 minutes left in the session. Coming up, cvs announcing a massive hiring spree. Well speak with that companys ceo about the moves theyre taking to tackle the virus and later, new york Governor Cuomo says no one should be talking about social darwinism for the sake of the stock market well discuss that debate on when to restart the economy with the chief of staff of Vice President , mike pence. Back in a couple of minutes. Dont get mad. Get e trade, dawg. With about 44 minutes left to go, the dow industrials up 1800 points. Almost 10 this is going to rank right up there if not the all time point move s p up 187 with more than 8 nasdaq up seven and a quarter. Individual Market Movers chevron soaring after announcing it will cut Capital Spending plans for 20 for the year and suspend its Buyback Program in a move to cut costs. The ceo also said the company would not cut its dividend shares of General Motors surging, announcing plans to draw down 16 billion in credit as a way to preserve financial credibility. Also suspended its 2020 outlook because of the coronavirus outbreak the stock is now about 18 higher but thats on a low number, 20. 87 sara cvs is launch test centers for First Responders and say in it will hire 50,000 new workers and provide benefits and bonuses to employees thank you, larry, r for phoning in first on the test centers, are they up and running . Where are they and who can get access we opened our first test center last thursday in mass and weve gotten a tremendous number of learning as a result of that. It is prioritizing our Health Care Workers and First Responders we can do about 100 to 110 tests a day and the tests are actually booked almost through the end of this week. One of the things weve learned, we can get one drive through lane operational and the learning is if we can take that concept to the parking lot of a closed school, we could probably get two, three, four drive through lanes and get as many as four to five tests done a day. So those are the discussions were having with state and local officials about where we go from where we are today so how quickly can you get this really going upscale across the country . You know how important it is to test people to see whos at risk and who has immunity. And look, this is a great example of Public Private partnerships and there are others that have joined us in this effort. Target, walmart, walgreens, rite aid and were working together as an sfindustry to make testing more available and thats being done at a local level. One of the steps is the availability of protective gear for those tharmaning those sites and thats something were working through. What about workers, larry have you got enough and are you finding enough available well, i could not be more proud of the work that our cvs Health Employees are doing how theyre responding to this Health Crisis from our front store employees to Health Care Professionals. Theres a strong purpose in our colleagues wanting to play a role in helping their communities manage through this. And they are doing yeomans job across the country and you know, our announcement earlier this week of 50,000 hires, some of that is reflecting some you know open requisitions that we have, but some of it is also responding to you know, the needs of our stores in terms of supporting our front lines in terms of the terrific work theyre doing. What are you seeing youre giving bonuses to front line employees its wonderful youre doing that is that to compensate them for the risks theyre taking theres a number of things that we began to do a few weeks back when you know the virus came upon us that you know the first thing in following the cdc guidelines was to ensure we were following the quarantine properly for 14 days and ensuringing that people who were quarantined continued to get paid and what we heard from our colleagues, especially for those that needed to work on site, we have about 80,000 colleagues working remotely at this time and that is going extremely well, but for those who need to be in the stores or perhaps you know in some of our region alpha silties supporting our stores, one of the things we heard as Day Care Centers close, how can you help, support me with that. Weve rolled out a program to provide day care support you know one of the things were emphasizing to all of our employees if you dont feel well for any reason, stay at home b and we wanted to take off the table you know the question of well, i feel okay. And you know, i got a little sniffle. Stay home. And not you know, have to deal with this issue of well, my paycheck versus you know staying home so we introduced for our part time employees a more flexible sick pay program that allows them to make that decision and the your point, we announced the Bonus Program and its really to reflect the extraordinary efforts that theyre doing taking care of customers all across the country. How much of your pharmacy business has moved online and how should investors think about the margin business there . Some of the things weve done for our customers is weve waived delivery charges for Home Delivery of prescriptions and other Health Related items we have seen nearly a 300 increase in Home Delivery being utilized and it gives consumers the peace of mind of not having to leave the security and comfort of their home to get their needed prescription refills and sara, you think about the fact today we got twothirds of the country that has one or more chronic disea diseases hyper tension, cardiovascular, diabetes, more times than not, the management and treatment of those conditions is accompanied by prescription therapy. We need to make sure that those individuals are staying adherent to their Prescription Medications and this is a key way in which thats being done weve also done things in terms of increasing access to care by waiving telemedicine fees, encouraging folks to utilize that service and we talked about covid19 testing in our insurance business, you know we are working with providers and hospitals to you know expedite transitions in care that are you know freeing up those important hospital beds in the, in the highly impacted areas. Yeah, wanted to ask about aetna and how youre managing aetna for what everyone is expecting to be a surge in unemployment and how thats going to affect your business. Well, sara, i think were anxiously awaiting the decisions coming out of washington, d. C. And i know the you know, the stability of the Insurance Market and the ability for you know employees to be able to maintain their Health Insurance is critically important and you know, we hope to see payroll credit for premium sup ubsidies especially for small bz with businesses and cobra subsidies for those that may lose their job and the importance of them continuing to have access to Health Insurance so well see what comes out of d. C. And finally, i mean you have such a good viewpoint of the whole Health Care System what do you make of the u. S. Response so far and where should we be focusing on . Well, you know, as i mentioned earlier, the tackling this crisis is not about politics and not about competition. Its about people working together whether its you know the Public Private partnerships that have e emerged that are making a difference ive been on several Conference Calls over the last two weeks with competitors and you know in these Conference Calls, were not competitors. Were an industry working hard to do the right thing for americans all across the country. Were sharing what were learning were sharing best practices and as a result, were doing great things together. Larry, thanks for joining us. Thank you our thanks the to larry now tomorrow, dont miss a markets in turmoil cnbc town hall special on the pandemic and the path forward a look at the future of companies, workers, investors and health care featuring dr. Cohen, dr. Gottlieb and john rogers you can send us your questions on twitter now tomorrow, 7 00 p. M. Eastern time on cnbc. We just got about 34 minutes left before the bell stocks are surging and it really has been a sharp global rally. The does up more than 1700 points right now s p 500 up 8 . Coming up b, well have the ceo of campbells soup about the Coronavirus Impact on that companys supply chain and what hes doing to protect his wo workers and up next, shares of boeing soaring as well today, but the stock still down 60 on the year well hear what the companys ceo said about the impablgt of the pandemic on his business right after the break. Its a challenging market. Edward jones is well aware of that. Which is why were ready to listen. And ready to help you find opportunity. So. Lets talk. Edward jones. Its time for investing to feel individual. Swhere my hobbits at . Play lord of the rings. Play my straight outta the shire playlist. I want to see the king. Find lebron. Search more cartoons. Play the last o. G. Take me to the streets, play sesame street. Me want more cookies. Find the things you love with a voice command. Introducing at t tv. With live tv and access to streaming apps. Plug in and watch, with easy selfsetup. Shipped directly to you. 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 were currently up 9. 6 on the dow. 8 on the s p, 7 on the nasdaq. Boeing getting a lift, but still down sharply the ceo joined b cnbc earlier today to discuss the impact of the virus on his company lets bring in phil lebeau with some of the i lights an interesting interview. Were just getting news regarding boeing and fitch downgrading the companys Credit Rating but first, take a look at shares of boeing. The stock moving higher today. Up more than 15 largely because of the belief that if washington is close to a deal, then that will be good news for boeing by extension for the aviation sector to keep it from suffering any more financial damage as they deal with really just an absolute drop in financials for the air lip Industry Worldwide theyre seeking 60 billion in federal aid and when we talked to dave calhoun, he was pretty clear. This is in the just aid for boeing, but by extension, the keep the entire aviation sector healthy. I believe were at the point of the sphere, provide liquidity and keep our industry and people warm so when the recovery come, were ready to go. I think its that simple so i always lobbied with the administration and with our congressional officials that the shorter term in nature, the better also this has been a day where a number of of the supplier stocks moved higher spirit, up more than 20 were see iing this large by because of the belief that washington is close to a deal that will not only help boeing, but help all of them by extension. I mentioned the fitch downgrade. This is the second time fitch has downgraded boeings Credit Rating this year they did it back in injury its because of what theyre seeing for the entire Airline Industry and the pressure thats mounting on them worldwide because of whats happening with the coronavirus. Phil, theres been a lot of coverage b about what calhoun said about the b potential shape of the government bailout and if it was an eck quity stake in the company, he would reject it. Surely, this is a binary issue either the Company Needs a bailout or it doesnt and if it does, theres an aspect of youll take what youre given. You could make that argument. When we talked with dave today, he believes there are a number of options for how the government can structure addingly quidty or making it available for not only boeing, but the aviation sector. Youre right hes not a fan of the government taking an equity take. Yonk i dont know if i would go as far as him saying im going to stay say no to 60 billion. I think theres a point in negotiation and by the way, guy, we have not seen a final deal if you will, come out of washington where the government says take it or leave it we take a stake in you or stock warrants if youre going to get the 60 billion. Thats one of the key points people are focused on finding out. Thank you boeing up more than 15 . Weve got about 29 minutes left of trade very strong rally. Best day for the market in a few weeks. Of course trying to make up some of the lost ground 8. 4 groups like energy, industrial and financials are up 10 at least on the day coming up, the chief of staff to Vice President pence joins us live well discuss the administrations steps thus far and the debate over how long this lockdown should last. And later, we will speak with the ceo of bloom energy, which is pitching in by refurbishing life saving ventilators and a check on bonds for you. Treasury yields get a boost today. The tenyear treasury currently yielding around. 85 a lot more stability were hear ng the bond market after the fed has stepped in in an unprecedented way to calm those fears. Well be right back. 25 minutes left in the trade for the day. Up grater than 10 gain as the dow sits back there above 20,000 at 20,486. Smaller gains, but significant for the nasdaq, s p and russell. There is not a sector in the red today. I dont know when the last time i could say that maybe the last week on one of those big moves up u, but Energy Leading the way, up 13 on the session. Financial, those have been the two laggards throughout this tour moil. The laggard of the day, Consumer Staples up only 4. 4 we lets look at the three things that are driving the action on this busy day. One would be hopes for a massive stimulus bill pushing the market higher the House Speaker nancy pelosi telling cnbc theres real optimism now to reach a deal soon some of the hardest hit areas loick airlines, cruises and casinos are the biggest gainers today but fears of the virus remain as cases around the world grow though President Trump says he would love to have the country up, open, running, back in business by easter. All right time now to get the latest on the coronavirus. Sue has that for us. I do, indeed. Thank you very much. Good afternoon, everybody. Some much needed ventilators arriving in new york city today. New york state is the u. S. Epicenter with nearly 25,000 cases and the number has been doubling every three days. Bill de blasio says thousands more are needed. This is loif aife and death. It is not sometimes people use words that are too dramatic. This is not too dramatic its life and death. We need these immediately. The Environmental Protection agency is planning to waive compliance requirements and deadlines for Many Industries amid the ongoing coronavirus n pandem pandemic Administration Officials and lobbyists say one big change is likely to be a waiver to summer burning gasoline scientists in singapore associate d with Duke University say they have developed a way to speed up testing of vaccines for the new coronavirus. They say in a recent study, their method needs just days to evaluate potential vaccines by tracking genetic changes they are partnering with arctic therapeutics and dukes Infectious Diseases program. The study is continuing. Were going to watch it closely. As always for more on the coronavirus coverage, you can head to cnbc. Com back to you. Sue, thank you so much for that as always. Weve got about 22 minutes left of the session and we are higher by just under 10 on the dow 8 the s p 7 for the nasdaq. Nt, wllupexe discuss whether this rally is for real or if we could see more volatility ahead. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Wenot the exception. 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Usaa edward jones is itswell aware of that. Et. Which is why were ready to listen. And ready to help you find opportunity. So. Lets talk. Edward jones. Its time for investing to feel individual. We are at session highs with about 19 minutes left to trade 10. 5 higher on the dow m close to 2,000 points higher joining us on the phone, the Vice President of o training with the center for financial resernl. Mike is also with us for this discussion randy, first start with you. Hows the market functioning today versus last week are there some encouraging signs out there . Well theres definitely encouraging signs any the mar t markets up and we started out with a very rare lock limit up with the futures overnight weve been accustom ed in the last couple of weeks to have lock limit down. Now you dont have a lock limit up when youre in the actual equity training that starts at 9 30 were up close to 9 right now so, when you guys get calls wondering okay, weve seen 3 30 whether were in for more pain and how much more there could be well those are questions that come up every time we have a pull back and ive around a long time this is the third bear market ive been through. We always get those questions and its a natural thing for people to ask those things we dont know. This one is different just like every one is different ultimately, it depends on the virus and how it progresses. How fast the outbreaks continue. When they start to peak and look look theyre slowing down. Whether we have effective treatments or whether we start to develop a vaccine those sorts of things all come up and we dont really know the answer were addressing the physical side, were addressing the monetary side which i think has happened with the feds blank check. Congress is trying to address the fiscal side, but the medical is is still the e louse ive side and thats what i think the markets are looking for. Mike, its not all encouraging signs today. I guess freshman a while, weve been welcoming any calm weve seen in treasure bry markets and seeing yields come down a bit. They did fall earlier in todays session. Now high e orp the day is that something we need to keep an eye on i wouldnt say that necessarily is going to go in the negative column. I dont know if were necessarily day by day wanting those yields to go down. I do think that in general, it would fit in with a little bit more of a step back towards risk taking, so im not going to extrapolate too much from that its key as you kind of assess the character and quality of a rally day like this, that one, you say its only one day, so as good as it might look and as overwhelming as the relieving might seem, you cant necessarily carry that those impressions forward. I will say also you have to keep in mind the very biggest one day rallies always happen after a massive decline. So in the midst of some kind of a bear phase and they typically are not necessarily punk waiting the end of that bear those though there are exceptions. I would say that the scorecard for todays rally is pretty strong but its only one day. Okay. Mike thanks for now well see you on the other side of the break randy, thanks for joining us youre welcome. We are looking at a more than 10 rally for the dow making it best day since 2008. This is the last commercial break before the close up next, uninterrupted kovrnlcoe of the final minutes of trade when we go inside the market zone live bookkeeper youre all set up janine great vo get set up right with a live bookkeeper with intuit quickbooks. We see hat emerson,kthroughs when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. 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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. 12 minutes left of trade commercial free coverage of the action going into the close. Mike is here to break down these crucial moment of the trading day and today, weve got carly from aerial investments here as well lets kick things off with the broader markets. Stocks surging today as optimism about an economic aid package grows. Mike call ed in to cnbc today sharing his view on how investors should be approaching this market. It is very dangerous trading positions need to be smaller you need to be nimble. This is not going to be a v shaped recovery for markets. Its going to be a big w but the, the extensions can be much further than people think and mike, clearly, its the beginning of a v today when you see Something Like a 10 bounce but the lessons from one and 2008 is that these might be temporary only yeah, the maybook does say that when you go through these situations, highly stresseded market, very big rallies and they can carry a good distance a third or onehalf even from those, typically there is some chopp choppiness that happens. It doesnt have to be that way so i think you can say the s p 500 huz loses onethird of its value in a month and basically a huge crescendo of fear. I think thats enough for relief in the shortterm and thats what were seeing today. It makes a lot of sense when you have policymakers that have tried to insulate the markets from the very worst of that kind of downward spiral feedback that we had last week charlie, how have you been navigating the turmoil and what do you do on a day like today . Weve been using a strategy of trying to look for names that are going to get to the other side of this it sounds easy, but its not thr companies that have too much debt that may not make it to the other side of this as compared to 2008, when we thought the whole Banking System might get nationalized and go under, we really do think you can see the other side of this and its only a question of whether thats a couple of months or six months so its buying names that are under a lot of pressure in these conditions but are going to be fine in the long run like what which names . What are you talking about the name we talked about probably the most is kkr the stock went from 32 to 17 during this last month and the fundamental business wasnt really hurt at all they have tenyear lock ups on most funds they get paid two and two, three quarters and 15 sometimes, but that business is going to be fine and yet the stock acted like it was going out of business. So blackstone went from 60 to 30 there are great businesses that weve been adding to because theyre going to be fine on the other side well a growing list of companies are suspending capital programs like dividends and share buybacks as they try to preserve funds amid growing Economic Uncertainty added to that, nordstrom, intel and chevron. Both suspending their buyback while nordstrom halted dividend and buybacks mike werth explained the companys decision to preserve the dividend our dividend is our number one priority its very secure we havent cut the dividend since 1934 and weve come into this with a position thats stronger really than just b about anybody in our sector and we intend to stay that way charlie, would you pick up a stock like chevron even with the risks around Lower Energy Price because mike wirth is prioritizing the dif kevidend i think you have to be careful. The Energy Industry may not look the same on the other side of this you have done a nice job of covering energy war, but thats a separate problem here with russia and saudi arabia. In their dispute some think that the russians are doing this on purpose to squeeze American Oil Producers i think that business does not look as good as it was four or five months ago and they should not frank ly in my opinion be paying the same dividends than they were four months ago. In normal times for Certain Companies cutting the dividend is a terribly bad red flag they want to avoid. But it seems like the market isnt reacting that way to the companies that have cut their capital return programs and therefore perhaps theres a bit more leeway than typical and it might serve to be prudent as opposed to sticking to your guns well, especially because the market has rushed ahead to price in some pretty bad scenarios for a lot of these companies already. So it doesnt typically come as a surprise when they finally do decide to halt a buyback or cut the dividend and you have a stock market keep in mind now where weve been swinging four, five, 7 a day so the idea of you know, compounding a 4 or 6 dividend yield isnt really the game at the moment so i think when a company says were going to conserve capital and thats going to help us make it through this period, thats a net positive as opposed to kind of taking away some of the goodies that investors were looking for. Now, starbucks Ceo Kevin Johnson called in to cnbc earlier and talked about a fallout from coronavirus and progress in china where many businesses are slowly returning to operation we have been dealing with covid19 now for nine weeks in china. And throughout that entire nine week journey, we have sort of learned the playbook and weve learned the curve in terms of when you shut down, what happens to Consumer Behavior and as you go through this, what happens when you start Opening Stores and were on the uptick in china. Are you encouraged, charlie, when you hear someone that has had experience with this process in china and had a relatively optimistic outlook that we will get there here in the u. S. Yes, it will take a little bit more time and the worst is yet to come, but is is optimistic than in two months time, well be on the other side absolutely. I think thats the thipg thats given us the most confidence is that weve ben that you can bounce back from this virus relatively quickly we saw the same thing in south korea. Now of course italy gave us pause on that scenario and new york is behaving a little less well as well, but we do fundamentally believe that china shows that with a dramatic downturn in the economy, which they had, you can come back relatively quickly and its not just because the Chinese Government is saying that. Were hearing from our companies and management teams that theyre chinese suppliers are almost back to full capacity, which frankly happened faster than we thought. Were at session highs up 2,0 3 poi 33 if we close around these levels, thats the biggest point gain ever we also spoke to cocacola ceo he told us how hes preparing the company and employees for economic downturn. Q2 will see the profound economic shock around the world. Weve got to be able to adjust our business and we have lots of variables and we follow our Capital Allocation model in a way. We focus on prioritizing the organic business and dividend. And then m and a and share buybacks we want to keep our skilled employees as we believe there will be. Still having a good day, performers in this volatile period a company like coca kcola has dividend and people are rushing out to guloseries to stock up on the basics yeah, these stocks, these companies have been, we own ed a lot of smuckers and theyre selling Peanut Butter as fast as they can make it there are a lot of businesses that are better this year than otherwise would have been expected, but some Consumer Staples, smuckers is one we like the best because it was trading better we dont love some of the consumer staple stocks because they were kind of expensive, but there are some that are both cheap and are going to do well 10 00 a. M. On thursday. Theyre positive for sure one of the things you look r for when you have an upside reversal after a big downdraft is you have an overwhelming majority of the stock volume in advancing stock. You have that today. In particular, a lot of people think its important to be at least 90 in advancie ining vole thats been the case now but as an example of just how far weve come, if you look at new 52 week highs and low, almost no new highs. Now a smaller number of lows, you have more stocks, a few doz dozen. A lot of attention, climbing even as the indexes went down. It was because it was at such high levels. So we have further declines in the vix, but not really to the what you might expect. It shows slowly trying to normalize. Mike, thanks for that we have just over one minutes left of this enormous rebound session. Just a reminder of the levels were seeing right now the dow paints the picture best of all. Its low of the session was up more than 1,000 points its high is where it stands right now. With 50 seconds left were up 2,038 points. That will be the highest points gain ever. It will also be the bigs percentage gain since october 2008 were up 11. 3 thats the best performance around the world today the german dax was up 10. 98 s p up 9. 3 russell 2000 up 9 every is sector up higher. Worst we are former up 5 and thats staples financials are up 12. 9 . Gold is up 6 . Typically, that could be seen as a negative though its showing proper functioning of markets once again as opposed to last week as we approach the close, three seconds lecft, 21 points. The highest points gain for the dow ever sara, over to you. Yeah, welcome bark. If youre just joining us, im sara along with wilfred along with mike, senior markets commentator on a big rebound day for the market take a look at how we finished up the day dow back over 2,000. Biggest point gain ever for the Dow Jones Industrial average a daily gain of 11. 26 best percentage gain since 2008. S p 500 broad rally here as well every sector finishing in the green. It was up 9. 3 energy, the biggest gainer up 16 . Financials up more than 12 . So are industrials and materials as well. All the sectors again in the green. Theres the nasdaq up 8 and the russell 2000 index of small caps also closing out the session with 9. P . A lot of losers in the recent market volatility and sell offs, they were on top of the market definitely signs of bargain hunting. Coming up, well hear from the campbells soup ceo. Well get his take on the concerns amid the coronavirus and later, mike pences chief of staff will join us his view of President Trumps statement that he hopes to have the u. S. Reopened by easter. Joining us to talk about the market day, Steven Wieting from city private bank. Mike as well mike, i thought i might have to manufacture the energy of the close sitting here in my kitchen as i am, not being on the floorg, but when you have a record points gain ever, i guess some came naturally, but break it down for us how significant is this bounce highest points gain ever, but its all relative of course to the declines weve seen recently sure. The its relative. How many days over the last month have we said that every sector is down and we have massively negative downside. Almost every stock has been obliterated. This is the reverse of that. We were overdue for Something Like that. There were indications in recent days that the selling was easing up an you want to see a market if nothing else, that can gain traction when it has the makings of this type of move meaning its been so stretched to the downside and you get some policy maneuvers that seem like theyre going to be helpful. At least in walling off that kind of worst case spiral we were worried about last week all that is to the good. Weight of the evidence says the biggest rallies do happen in these highly stressed markets. I think youre going to look at the volume split today and people are going to be able to say its probably going to take something nasty. We would assume, to get the s p below yesterdays lows just because there was a little bit of sponsorship of this rally again, the last time we were this strong, october 2008. It was not the low of the market there were more chapters to come, but it sometimes gives you some breathing room if nothing else to have a little more of selective market charlie, when you think about the why, the fundamental reason, i mean optimism around stimulus. Nancy pelosi with jim cramer this morning sounds like shemts wants a dea. That was part of the underpinning what do you think about the fundamentals and whether you know enough of the good news to be a buyer back in this market i think there are two things. I think and you know you always have to be careful about how you talk b about these topics because you can be insensitive, but i think one, it was President Trump saying that he wants to balance the negative impact on the economy with the health issues. Frankly, the wall street Journal Editorial Board made that point a week ago. Youre starting to hear that from more and more people. The its not just the virus. Its how the economy reacts and how people react to the virus. And i think President Trump saying we have to take into account the Economic Impact in our policies was very well received the second thing was the intervention in the bond market. The bond market even for Investment Grade was hit extremely hard the fed coming in supporting the investment bond market really took the worst Case Scenario off the table. The market took that very positive go ahead, sara. I wanted to follow up that the market took it well that the president wants to balance the economic health. Can you just dig into that further . If we see the economy open, you know, as he mentioned, by april 12th, which is a lot earlier than a lot of the medical experts have told us what needs to happen to flatten the curve, then you start to think about what kind of rovry were going to get are people really going to be out spending are the governors going to allow that to happen are the companies who face liabilities with their workers going to allow that to happen . If your goal is to minimize the number of deaths, you would have people stay under quarantine for month, not weeks, but if your goal is to balance the economic effect and make an argument that a bad economy is bad, is hardest on poor people who dont have the same kind of access to health care, then i think you get to a different result you get quarantine measured in days or maybe a couple of weeks. Those are very different outcomes again, i want to be very respectful and careful that these are moral questions that were asking here. But the fact of the matter is that people starting to make the argument that it is not in the best interest of the poorest people in this country to shut down the economy was well received by the market steven, im wondering what youve been doing in the equity market over the course of the last week or so and whether now that weve seen an 11. 4 jump in the dow that those sort of longterm great buying opportunities that some were talking about have gone for now. Given that of course there are still a lot of questions out there. I think what michael said yerl earlier, pointing to october 2008 as the last time theres been a percentage jump like this and knowing again, fortunately were only talking about bringing in you know the negative side of an orargument here, that markets ultimately found a bottom in march of 2009. Four and a half months later and you know, i think the way this has moved, this has moved remarkably fast, like a gun shot across the World Economy that it doesnt take necessarily that long. But the idea here that this health threat, the fact that india is now shutting down social interaction, you know 1. 3 billion people, things like this, the spread of this, the question earlier about whether or not social distancing can end right when people fear the virus, they fear theyll be infected people take responsibility for other folks. That the Economic Impact can be over in a day. I do think that you know, weve been very fortunate here policymakers have moved very fast what took the fed 14 months to do in the 08, 09, which was entirely dimpb ll lly different taken 14 days to get to credit easing so all these sorts of things, and the economy is is, its really had a terrible, terrible shutdown. Across services. Chinas economy probably fell to 30 an ulized rate in the First Quarter. But with that, its able to rebound and you know, we think again this will be with the right policy, a short duration collapse and we can have a recovery but i cant minimize again whats going to happen in the economy over the shortterm and this Health Crisis itself and think that we should just say all clear, no problem because of a bounce in a day. What drove it, bob . You can look over the valley of the coronavirus into the next month or so where things are going to be a lot better the s p, every time it hit a new high today, we saw volume pick up thats technical buying. Thats an indication of the interest people have of looking past this. And you could see it in the big sectors that have gotten hit the most oil, apache, down 75 or so. This month the other big group, 29 the banks, most of the big banks down 25, 30 fifth third is down 40 . One of the big banks it rallied today see that nice move, 11 . Then we have Home Builders, too. Some of these Home Builders are down 50 this month. Big rally today. Some was on the new home sales, but basically, you get the idea. You have the most beaten up sectors. The mortgage reits have been b a big problem. They borrow shortterm money then buy longer term mortgagebacked securities their short tomorrow boar reirr costs have gone up invesco said they cant meet their margin calls and theyre delaying Dividend Payments so theyre having a big problem this is one of the big fallouts from this whole disaster so far, but a big rally in the most beaten up sectors today. Guys, back to you. Bob, thanks so much for that. And treasury yields moved higher today having been a little lower earlier in the session hey, rick. Hi, wilf. A twoyear note yield is the best gauge look at a twoday. The way it drifts higher the short end was firm today light selling throughout the day. Yields did move mod eestly higher the twoyear note auction, i gave it a d plus, but we still moved 40 billion worth of paper. Look at a twoday of tens. Much flatter, long end has been flat if you look at fridays, mondays and todays potential close considering were at 83 basis points, were finally starting to see consolidation, market volatility coming down a bit. Heres the chart of the day. This starts at christmas 2002 dollar index you realize how close we are to basically expanding the dollar to 17year highs we need to get onethird a percent higher than 03 and weve been there several times as far as deals today, the short on being firmed flattened them all but curves are a whole lot steeper than they were about a month ago. Back to you. All right rick, thank you. And mike, you know were starting to get more characterizations of this rally because it was a giant day dows 11point rally today, the biggest gain since 1933. And i feel like this is the part of the program where you come on and warn everyone that the biggest snap back days happen during the biggest bear markets and tell us what to make of todays monster move and whethe its indicative of anything you should be doing. Buying now k on the lows or just waiting to see where all of this flattens out. Yeah, i think at minimum, you say theres nothing about it that screams all is clear, all is well. The market has this all figured out. If you want to go back to the 1933 day, i was going through the details earlier. Fdr, about ten or 11 days ended the bank holiday and you can understand there was this like big burst of relief that the world hadnt ended so i do think you have to keep that in context. At the same time, i dont know that in the very shortterm, we needed more fear, more pressure, more lost market value in the stock market to price in what we know or fear in the immediate term so my point is its a plausible place for there to be some kind of a e low in this mark, but today didnt tell you for sure that its there. So i think what you want to see is the market calm down a little bit. You dont really want the market taking upside in 10 bite. Thats not healthy you want to see more orderly trend develop here and that would give you a better sense of whether theres real money coming out talk today of how this could be one of the biggest rebalancing of pension type assets massive outperformance of bonds versus stocks. So in theory, lot of selling would have to happen not sure thats going to be a driver, but just that talk has been out there charlie, you were clear you were comfortable buying stocks of companies that you know will come out the other side of this. I wopderred what your views were on some of those sectors that are really threatened and eagerly awaiting news of potential bailouts particularly in light of the fact that i know in the past on the show, youve talked about owning cruise ships and carnival in particular. Where do you stand on those names . When you and i were together in new york, we talked about the Airline Industry i made the argument it was not an industry that i was sure was going to make it to the other side and i till feel that way. Cruise lines, we are taking the position that they are going to make it to the other side. A lot of complicated reasons they have shipbuilding countries like norway provide Financial Support to carnival and royal caribbeans borrowings and as a result, they do not have the kind of shortterm liquidity problems that you might think. So we believe theyre going to make it to the other side. I will admit of all the names we own, thats the one where there will probably be some debate, but we believe they are going to get soth other side and when they do, frankly, trair trainin for about half of the costs. Okay. Charlie and steven, well leave it there thank you both so much for wroin ijoining us thank you campbells soup announcing new support for its employees amid the coronavirus outbreak. New initiatives include a 2 per hour pay bump for hourly employees at its production facilities and Distribution Centers as well as a 100 per week premium for certain front line workers this as consumers continue to flock to Grocery Stores to stock up on food and essentials. Joining us now for more in a cnbc exclusive is mark claus welcome back, mark thanks for joining us. Tell us a little bit about some these new initiatives for your employees and why the its so important youre doing that now. Sure. Great to be back on with you worlds changed quite a bit since the last time we talked. I think the focus for us as a company right now are really around protecting our teams and in our mind, that covers the health and wellness, this is a top priority, but also the financial side for our employees. So i think what you heard today is the compliment to the health and wellness initiatives weve had in place which include upping our sanitation focus and our personal Protection Equipment that are in our facilities as well as protocols that are in place in all of our facilities where they reflect if someone comes in contact with someone with the virus, if someone has it, what are we doing and how are we managing through that if it includes a shutdown in a facility, how are we going through the cleaning efforts and reopening with the proper amount of screening to tsee that facility get back up i think today what you see now is us adding to the welfare of our teams by adding this uptick in hourly wage for our front line workers that quite frankly, theres been no shortage of inspirational moments from our team across the company. Whether its folks in the manhattplant or front line sales that are keeping food, showing up in our retailers and into our communities. I think the 2 is a way to recognize that effort but also help them navigate what could be some added costs in their life including in that is our supervisor that are in sales and on the front line with the 100 to help navigate that as well. So i think our efforts to try to protect our employees through both those aspects talk to me mark about the supply chain where most of your Raw Materials and ingredients come from and whether youre able to access enough of them to meet demand not to mention the trucking and the shipments with so many states in this country now shut down yeah, its you know, its clearly, theres some challenges i cant promise you that every flavor of every brand is going to be there each day, but what i will tell you is that the teams are doing very well and that the food supply in our supply chains are holding up in the face of what is really Unprecedented Demand over the last four week, our soup business and market consumption data is up 60 as you might imagine, even our best efforts to ensure were on top of ingredients and packaging is putting some strain on the system, but im confident well the flow of product were there to port our retailers as well as our communities. And some of the folks that are feeling this the hardest right now are those that are utilizing food banks and hunger programs and we want to make sure that were taking care of everybody as best we can so i would say so far, so good and were confident in our ability to continue to move forward and provide supplies as needed mark, are you seeing a dif rent sort of regional performance in ferms of the spikes in demand you mentioned, plus 60 for soups both across Different Countries and different regions of the u. S. Based on when they started to see acases peak i think demand has gone through an evolution initially, i think we were reacting to was what you see in a natural or weather disaster where you see pantry loading and certain products in certain geographies ramping up i think what weve seen now is this is sustained over time as you have more people eating in home including lunches where a lot of our products play a very Important Role youre seeing the sustainment of that demand now over time. And its not isolated to any particular part of the country and even across our entire portfolio, soup is up 60 but on the other hand, we have goldfish that was up over 20 in the last four weeks so were seeing pretty widespread demand that i think as people are adjusting to what theyre having to deal with right now, were finding that the products are leaving the pant pantry, being consumed and that the replenishment in store is really important for us to stay on top of right now. And mark, investors want to know if you can leverage the fact theyre coming to your blands that havent been for a long time, soup in particular, for the long run do you see a structural shift here where you can bring people back to the brands and this can be more than a temporary phenomenon during the crisis as we sit here today, our top priority and we as a company have created a simplified mission where weve set really clear priorities across the organization and are focused in three areas. The first is take iing care of people the second is making sure we produce and distribute our food as safely and quickly as we can and make sure were fulfill iin that need then the third area of focus is really solidifying the way were going to operate in this new environment thats the priority today as we focus on the things that ying matter most. But what i will say is if we look forwarden sta and start to understand what the world might look like beyond this crisis or even if its sustained over a period of time, i do think that well find that our products have been utilize d in homes tha they may not have been in the past and i think its been up to us to make sure that usage ideas and that we continue to sustain on the quality of our products and i think they are fulfilling important needs now and although not a priority, i would expect over time that this will help introduce many of our brands to a broader population mark, thank you for joining us the ceo of campbells soup and we have an Earnings Report to tell you about nike just out with results looks like it was a miss on earnings the consensus was for 59 but 53 cents in earnings includings a 25 a cent charge related to a change of distribution in south america. So a sort of one time charge there. As far as ref knews, it was a beat for nike. 10. 1 billion in revenues. Expectation was around 9. 8 billion. Everybody looking at Greater China because this was the First Quarter that incorporated the covid19 outbreak in china remember, nikes quarter ends just at the end of january so it looks like revenue in Greater China for the quarter was down 4 nike saying that obviously the first two months of the year, of the quarter, they saw double digit growth then once we saw china go into lockdown as a result of the outbreak, you saw those sales slip i would also highlight a point on nike. The e commerce or digital growth, which nike saw up 36 . If it continues to grow its e commerce business, thats how it maintains revenues when we have lockdowns like we had in china in february and now that were starting to see in europe and the u. S. All nike stores are closed in europe and the u. S. So you can expect the ecktives to get questioned on what that means current quarter. The fact that the onbusiness grew 36 obviously a strong sign and in the release, they say as it relates to china as the peak in february, roughly 75 of nike owned and Partner Stores were closed however, nearly 80 of doors are open in Greater China right now and it is happening theyre saying even higher rate in key cities. For china. So very much talking about the rebound theyre starting to see there, which will give inves r tors something to think about when they try to process what the impact is going to be in europe and the u. S nike usually gives earnings on the guidance on the call well listen for it but i expect like many of these other companies, theyre not going to be able to have guidance because nobody knows how this situation is going the play out. As you said, the quarter itself ended in january but those comments about how much closed during february and march in china, 75 of their doors and then how much of it is open today. 80 . 80 that shows a fairly quick rebound six weeks or so. Now clearly, theyre saying 100 in europe and u. S. Thats more than the 75 closed in china and Greater China, but the fact that it turned around so quickly is encourage iing thh well have to wait and see if theyre able to open as quickly here as well and also we saw nike have a big move up as well as the rest of the market today. It had its best day since 2008 so people buying in. I think the key question on the call sxwoing to be how much Online Business they can generate in the u. S. And europe while stores are shut down nike numbers that sara brought us theyre saying its an opportunity for strong brands. I wonder if well see that in due course the Companies Come out in the longterm fairly strong from this tour mi turmoil. Mark short will join us next to discuss ncns owh ncoerf Enorth America should go back to work or not you can always watch us live on the go on the cnbc app were back in a couple of minutes. Its a challenging market. Edward jones is well aware of that. Which is why were ready to listen. And ready to help you find opportunity. So. Lets talk. Edward jones. Its time for investing to feel individual. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] welcome back a record day here on wall street in my living room. Up 11. 4 on the dow. Big, big bounceback from recent ceo declines as the coronavirus drives the economy to a halt, President Trump says he hopes to get america back to work by easter but andrew cuomo firing back on calls to end the lockdown early. No american is going to say accelerate the economy at the cost of human life because no american is going to say how much a life is worth job one has to be save lives joining us now, mark short, chief of staff to mike pence good afternoon thanks for joining us. Thanks for having me. This debate about when the economy should be allowed to fire up has been front and center today and i know that the decision to allow people to go back to work wouldnt happen unless certain conditions improve. Certainly wouldnt happen if conditions worsen. That said, is it a mistake to be bringing up this topic at all now . Does it suggest to people that the serious measures that have been put in place and finally people are starting to follow are not in fact i dont think thats the message. I think the president took Decisive Action in banning travelers coming back from china, coming back from europe when we saw Coronavirus Spread to italy and throughout europe i think that the measures that the president authorize ed rougl nine days ago, the 15 days to slow the spread were taken out of an abundance of caution i think you can work to make sure that youre protecting and saving lives at the same time and allowing us to git back to work theres a couple of different ways to do that. Right now, more than 50 of the counties in the United States do not have cases of coronavirus. We recognize people traveling can transmit it and theres certain measures such as in new york that are extremely hard hit that maybe you dont have in ore part of the country. It doesnt need to be a one size fits all i think we wanted a one size fits all for 15 days and the best way for them to get back to work is asking them to abide by the guidelines so were asking them to continue to go another six days the president s not made a decision as to when hell roll that back, but there are ways as well it doesnt have to be going from red light to green in one day. You can have a transition phase where you institute different guidelines for different areas we know whos the most vulnerable we know its the older those underlying conditions and so perhaps there are ways that you could present guidelines that are different in different parts of the country, but ultimately, also, theres a federalist approach to this country. So governors can take that advice and look to make it more or less stringent if their independent states and mark as you suggested, the state of new york probably unlikely to fall under the green light category as things stand there was a fairly impassioned press conference earlier from Governor Cuomo. One of the other stands is he was really imploring the president to invoke the defense production act and i guess the question is why do you think the president has been so reluctant to do that when you see how much of a go ahead sorry. I guess the question back is name a product that the private sector is not doing everything they can to produce at this moment the use of the act would be to force a man fufacturing plant t produce something already manufacturing plants across the country are volunteering to say we want to transition to making n95 masks. We want to transition to making ventilators. We want to transition our plants into making gloves weve had that from hanes they want to provide cotton masks my pillow that says we want to transition our plants into facilities that can produce more mas b ks and gloves. Even from Automotive Companies looking to change their plants into respirator plants so you know right now, the private sector stepping forward and really its an pay maizing part of the american spirit. People wanting to volunteer and basically compelling industries to produce something theyre not willing to do. Right now, the private sector is doing that for us. Yeah but its not happening on a big enough scale. The governors are still saying that theyre desperate for it and the other fact is that theyre saying its sort of f creating this private marketplace where they have to compete with each other to get the critical supplies they need. We are doing everything we can to unload the National Defense stockpile and i think that you know what was missing in Governor Cuomos remarks today is the 2,000 respirators sent overnight to new york, another 2,000 today going to ouo the stockpiles, but some plants are willing to produce up to 20,000 a month and theyre looking to transition as fast as they can compelling them is not going to expedite that. The president said he is willing to do that when we find instances we find something the private sector isnt willing to do were not seeing that. We know theres going to be bailouts or at least special purpose loans to help Companies Get through this crisis and come out on the other side. I wonder how you are thinking about how you make sure you protect capitalism on the other side of that particularly when this bailout and inverted commerce comes so soon, 12 years after another one and one that really did benefit the wealthy much more than it benefitted the working class how important is it to shape these types of again bailouts and inverted comments the right way . I think this package working its way through congress is really intended to focus on main street as youve heard larry kudlow say many times. Providing loans to Small Businesses and making sure small and Community Banks have enough liquidity to make sure theyre continuing to extend loans but i think theres a dramatic difference between this and what happened 12 years ago. I think with the wall street collapse, there was obviously perhaps a lot of bad decisions in loans that were extended. This case, its not a failure of the free market. What we have in this case is a virus that the government asked people to stay if place, which obviously impacts a lot of businesses, especially travel businesses but its no fault of the models or market. As you said from the start, the president has responsibility to protect the American People and those are actions that we took and asked americans to comply with so i think the comparisons and the impact on the market is the same, but as far as longterm consequences to free market capitalism, i dont see the same compariso comparison i believe when were through this season of this virus, that hopefully well be able to return back to business as fast as possible. And just final ly, we know from various sources of report thag a the president and Vice President and various high pro file investors from private Equity Investors whats the advice that they have for the president to keep the markets functioning well and i guess the president and Vice President welcoming todays record points gain ever on the dow. Well, sure, but i think the more important record of the dow show we make sure those families hard working families across america are able to get back to work as soon as possible in a healthy way. The call was a private one so im not going to share much on this opportunity with you, but i think theres a wide amount of different guidance that we receive and we always welcome that sort of input, but as excited as we are to see the market reaction, our focus is for the the hard working americans across the country thanks and stay healthy thanks for having me. Same still ahead, find out how, actually, you know what, were going to mike and get one of his chart dashboards hes look iingt today after a historic session on wall street biggest percentage gain since 1933 what are you looking at . Exactly yeah, looking at a couple of corners of the markets that really were in need of repairment some have gotten it, some have not in the days since the Federal Reserve came in with that big backstop package. Take a look at mna an e the tf that tracks the strategy which is really the typically very boring. You see how this was a flattish chart beforehand typically its like bonds. It fell apart because all strategied had capital flee and the risk that some of these are not going to go through. But youre seeing it come back so thats what you would expect as a market priced to gain its footing and tries to exsome of these anomalies and it seemed there were some easy opportuniti opportunities. Bob was talking about the really top growth in mortgage reits they own these and own a lot of nonagency mortgages. So ones that are not backed by fannie and freddie that had another tough day you see a lot of f the funds having to liquidate here so parts of the Mortgage Market havent been fully fixed so it seems like you have to kind of pick your spot and just assess the damage and see what areas are going to respond all right mike, thank you. Want to go to julia now with breaking news on facebook. Julia. Theyre saying they dont want to touch the services where they are seeing increased engagement as a result of coronavirus and seeing quote a weakening in our ads business in countries taking aggressive actions to reduce the spread of covid19 now facebook also sharing some numbers of dramatic engagement 75 more time spent on the app instagram and Facebook Live views have doubled in a week and also messaging has increased over 50 in time and Group Calling is up by over 1,000 in the last month so they are seeing an impact in advertising. Facebook shares down about 1. 5 in aftermarket trading back to you. Thanks very much for that i guess quite similar to the themes we saw from twitter falling ad revenue meantime, over to sue for the latest on the Coronavirus Crisis sue, over to you thank you hello, everybody heres is latest from around the world. In the u. K. , the Health Secretary announcing the excel centre in london will now be transformed into a temporary hospital capable of holding 4,000 patients but he also laid out the governments plan to get people back to work quickly because u it really matters for getting people back to work so weve now brought 3. 5 million antibody tests that will allow people to see whether they have had the virus and are immune to it then can get back to work covid19 has contributeded to the death of one of americas most accomplished play wrights Terrence Mcnally won four tony awards and is known for love, valor, compassion and kis of a spider woman he was a lung canc survivor. He was 81 years old. And as always, if you need more on the coronavirus coverage here at cnbc, go to cnbc. Com back to you. Sue, great stuff. Thank you very much. Now the number of coronavirus cases in the United States topping 50,000 today and showing no signs of slowing, but our next guest reports that drugs to treat the virus are largely still unproven or facing a supply shortage. Joining us by phone, Senior Writer at stat news. Good afternoon im hoping youre welcome connected to us today. I am. Thank you. Apparently, i can be seen or heard. Nice to hear you lets talk about the Testing Capacity first of all. How much and at an bun dant level. The good news is companies are starting produce tests that are commercialized and theyre talking in terms of millions of tests but those are going to take potentially weeks for labs to get them really run ining in some cases and the big question is i dont think its clear how many tests we need, especially here in new york where were seeing huge numbers of positives for every test we run. So, who gets the tests, and how long are they taking right now to come back in the places where it is, you can probably get a turn around of under an hour, but thats for people in the er. Ive heard turn around times for people up to seven days from hospitals or from the major testing centers. Three to four days have been ha been the time that say a lab corps has been given some hospitals are talking about 24 hour turn around while theres a shortage, its really important that people who are sick get the tests and its really important that we have them for Health Care Workers to try to keep them from being out of commission. So you really are dealing with a situation where not everybody can get a test because when theres a shortage, the Health Care System is going to naturally look for the cases where its highest priority. Matt, in terms of the ramparts that we need to see to increase volumes of supplies, is the testing side of things the most important that we need to see that ramp up on or is it other areas, whether its masks and sanitizers or ventilators or whatever else . If we could get enough ventilators, that would help a will the of the problems, wouldnt it . Obviously, Health Care Professionals need masks its kind of like were asking whether you want food or watt rer at that point. Hospitals obviously all over these things i would probably agree that the testing is not the most urgent and crucial, but its we really are flying blind and we have to figure out how to figure out what exactly is going on in terms of how many people have coronavirus, are cases going up or down. Where were seeing big increases, were testing a lot of people and finding a lot of people, but a lot of them are infected it doesnt sell tell us how fast the infection rate is. Matt, thanks so much for joining us still to come, well speak to the ceo of an Energy Company that is now rerbhifuisng ventilators to help critically ill coronavirus patients dont go anywhere. Liking the now platform . Every time it takes care of something for us, we celebrate. How often does that. Got it. Servicenow the smarter way to workflow. We see eat emerson,mulating when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. But when allergies attack,f any the excitement fades. Allegra helps you say yes with the fastest nondrowsy allergy relief and turning a half hearted yes, into an all in yes. Allegra. Live your life, not your allergies. I know that every time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. 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Yeah, adding to the sort of similar theme out of starbucks as well that its going to get worse before it gets better. Still to come, your daily good news rundown one Energy Companys refuisngenlarso lp coronavirus patients and well speak to the companys ceo after this short break its a thirteenhour flight, thats not a weekend trip. Fifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. 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. phone ringing a phones offers big button,ecialized phones. And volumeenhanced phones. , get details on this state program. Call or visit and accessoriesphones for your mobile phone. Like this device to increase volume on your cell phone. phone ringing get details on this state program call or visit wac welcome back the coronavirus pandemic has spawned support as people rally together for the greatest good here are some of the latest stories. Wells fargo will pay special compensation for those included on the froshts lines wonder lease will increase hourly wages and will pay an increa increase 320,000 for feeding america and 350,000 meals to atrick communities in the new york area Tesla Ceo Elon musk saying he bought 1200 from china adding, if you want a free ventilator installed, please let us know. Another company jumping into a call for ventilators is bloom energy the company normally makes power generator, but is now working to refurbish ventilators. Joining me now is bloom energy ceo. Thanks for joining us. It is such a great story when did you realize that you can make fuelcell Power Generators to ventilators . Thank you so much for having me look, we just got a call from the governor last week and heres what he said. We have hundreds of ventilators that need fixing and we need them to be fixed fast. I knew we could help, bloom energy could help. We are a manufacturer and manufacturing is in our dna and weve always believed that American Manufacturing is necessary so we can stand on our own. At a time of crisis or emergency is that becoming real. So we said this is our call to action we have to help. So we sent an employee to sacramento and picked up, you know, 20 of the ventilators that the governor was talking about, brought it back. Over the weekend we learned how to fix it, and we knew we could do this. Now a facility in california and a facility in delaware that we have, we have repurposed and we think we can do hundreds of ventilators, close to 1,000 ventilators a week off of refurbishment. This is the fastest way we can take existing ventilators that are out there, get them working, get it back to the hospitals, and help so along the way what happened was i picked up the phone and called the ceo of air, which is one of the leading manufacturers of these ventilators and heres what we worked out, ceo to ceo they will give us the spare parts to be able to fix this they will train our employees on the functional test and how to make sure that we get this done right. In return, they can simply repurpose their repair line to make more ventilators. So then on this story, building upon it, the ceo of alamo, which is a Distribution Company based in philadelphia called us and said, let us volunteer and do all of the logistics that you want of getting those ventilators from the hospital to you and from you to the hospitals, lets do that our sales and Marketing Team came and said why dont we create a phone bank and call the hospitals letting them know this was available. How can we help . We created an 800 number and we have an email, anybody can send us a note. One plus one plus one is greater than three, so were all in this together we have to make a difference kr, its a very encouraging story, and congratulations and thank you for enacting all of it i wonder if you have any guidance whether from Governor Newsom or speaking from the players in the industry how much replenishing and fixing old vent later can make a difference relative to the manufacturing of new ones is this Game Changing for americas need for ventilators or do we still need to also manufacture a lot of new ones, as well . I think its and, and, and, but if you were to a factory that has never done ventilators before if youre trying to set up a production line and get supply chains to make it, test it, train your people and get it out, its probably a few weeks and a few months and what we understand is the need is today. The need is the next week and the following week we also understand from the statement that there are more than 10,000 of these ventilators. I have reason to believe that that number is lower than what is being stated because one warehouse in sacramento there are more than 400 ventilators that need refurbishment. Kr, thank you so much for joining us, and thank you for the work keep up the good work. The dow climbing more than 11 turning in its best session since 1933 its biggest points gain ever lets bring in mad moneys jim cramer to help make sense of the market jim, an extraordinarily big jump and so big, is it hard to believe that its the start of a lasting, long term recovery . There were two times that it was like this, 1933 and the other time was 2008 which is when t. A. R. P. Was passed and both times there was no demand and that was the real problem and the market went up and there was demand for stock, but there wasnt demand for goods. Until we see demand for goods are we likely to see secular growth stories like Skyworks Solutions which we have on tonight. You realize this is a gigantic short squeeze because people felt it was going to be another bad day and there would be no agreement between the demes and republicans and there still isnt. So i would say just be cautious. This is a oneday bull market. Youve had stocks that moved so much they basically moved as if the second half of the year is going to be good wilf and sarrea, i struggle to e that the next half of the year will be good is this the time to plunge into norwegian cruise line. If youre going to take one maybe ill own the stock i dont know i would be a little suspect about that trip . Yeah. No, jim, youre right. So we dont have a deal yet in washington and part of todays rally i think was founded on the hope and the optimism that we heard from the House Speaker when you spoke to her. Youve been talking to the treasury secretary and you have to line into both sides. Whats the hold up i think theres still way too much skepticism about the about what Speaker Pelosi called the splush fund. Secretary mnuchin does want believe that the 500 billion is a slush fund its more an ability to be able to make it so whenever is really in trouble doesnt go under. In the interim, what you have is you have stocks like nike and sara had a good quarter and china wasnt so bad, and suddenly, this element of hope based on anecdotal evidence and at the same time how Many Companies will preannounce that things arent so good. I hate this kind of rally. This was a machinedriven rally just like the selloffs. We all know it, we know they were going to nail the close higher because thats what the machines do. They accentuate and i want to wait to see. Today, there are other days besides today. This was one day of a bull market and then were back into the notion of a dysfunctional market it didnt really function today, guys it really didnt yeah, well, not normal to see 11 percentagepoint move, jim. Thank you. We look forward to hear from you on your show i do think that this place is so dynamite looking you might want to switch angles or that picture behind you it looks like something you bought at the Martin Lawrence galleries. Its a picture. I do know which one youre talking about, jim, but this one is a nice one of my old man and the cnbc logo in the background. I think hes making fun of mine i said, oh, my, i have to tell wilf how much i love david frost. What a guy geez well, thank you very much see you tomorrow. As are you, jim, and thank you for that insight and we look forward to more insight from jim cramer o