Transcripts For CNBC Squawk On The Street 20240713

Thank you, guys. Okay. Alex gorsky from j j, appreciate it well be back tomorrow cnbcs special coverage continues right now. Good monday morning welcome to squawk on the street, im Carl Quintanilla with jim cramer and david faber. Coming to you live from separate locations even on set as we practice social distancing futures are stable to start the week as the president extends those social distancing guidelines to april 30th j j, as you just heard, announcing a lead candidate for a covid19 vaccine a lot of people were astonished that the futures, just at the moment when the president said, look, we have to extend things. Take away that april 12th deadline, it will go all april at the very moment we saw the futures start reversing. I think this is a day, dont know how much more, a day where science trumps the pain and the disaster frankly that is covid there have been many, many days weve come in and science has been playing catch up game today it sounds like science is on target. Listening to alex gorsky, ive known alex for a long time, there was nothing in his voice that was tentative it was all full speed ahead. We also know there will be a lot of mayhem between now and when that happens i think theres a sense that this thing is here to stay the idea that everybody can be back to normal is fanciful when you start hearing about vaccines, you start knowing about the companies involved, you start thinking one day maybe physical distancing, social distancing, whatever, could become something of the past so i dont know, we have david back here. Hes certainly physical and socially distanced from me i do think that this is a day where you say, if im short, im betting against science, not betting against the lackadaisical attitude of many people in the country. Youre also dealing with a situation none of us have ever actually seen before and when it comes to the market, certainly the sense is that nobody knows anything at this point. Were all trying to understand how quickly the virus will spread, and or how quickly a vaccine will be available or more importantly in the nearterm how quickly antivirals may be available that would certainly slow or mitigate the effects of the virus and therefore really add a significant element to our treatment of it. Or even the antibody tests that would give people the sense of or let them know whether they have it or not unchartered territory continues. Nobody really has a great sense for any of those things i mentioned. Theres a positive response this morning despite what was not great news over the weekend. Im so glad you mentioned the antivirals. Theres a lot of lore going around, a lot of urban legends on what works and doesnt t the hydroxychloroquine one thing that intercepted the notion of where we are is the president s conviction that certain things are working we certainly want them who wishes things werent as perfect as the president says they are then he says i never said it was perfect. You understand the notion of wanting to be on wartime footing, wanting to have many antivirals working versus the notion of seeing pictures on the beach and the notion of crowd distancing being something that works in some places and other people seem to ignore it then the pictures out of new york which make you look like pictures out of wuhan. Then the pictures out of wuhan are what you want for new york were on wartime footing, to criticize the president during wartime is a disedicious. Dr. Fauci saidant to be optimistic thats what we have to offer viewers. You were clearly on twitter annoyed by some of the crowds you saw on some of the florida beaches. Jim, david is exactly right. If this medical curve goes in tranches and vaccines are the final tranche, whats more important nearterm . Is it gilead saying we expect remdesivir results in weeks . Is it abbotts test that can be done small and portable in the hospital what is important to watch in the nearterm . We do have miles white tonight on mad money to talk about abbott i felt over and over and over again its testing, testing, testing. The way you beat this is to have as many tests going on what you want to do, you want to have a plan for the country to come back. But the country can only come back if we know whos healthy and whos not. Theres a perception that everybody is awaiting getting this there is also just a terrible series of just as there is too much hope being given to many antivirals, theres way too much of the of what i would regard as were all going to get it. Well all put our hands to our face well all be connected to it theres no hope to it. I find both are just really, really, id say, illadvised in terms of what were trying to do for the people david, i think that you know that the impact on the economy is far worse than what were making it out to be. Theres too many team who cant pay rent too many mortgages out there weve got a lot of different products that are predicated on the idea that it is sack croissakr sacrosanct that you pay rent there are real issues being confronting us in the next few months that would make it so that the recession is like the depression if were fighting over the number of ventilators, the spare number of ventilators that are somewhere in a warehouse somewhere, were missing the larger point the larger point is will society function in the time when no one seems to have to pay anything . Youre absolutely right, jim. Those are the conversations youve been having, that ive been having as well over the course of the weekend, and certainly during the workday, so to speak that we have these days the concern amongst people who run businesses is how theyre going to pay the rent and, in fact, many are choosing not to it is also turning to restructuring. You talk to people in private equity, for example, where there are obviously a portfolio of companies that oftentimes sort of is the width and breadth of the u. S. Economy, you get a sense that theres a lot of problem areas, those that are not right now are expected to be thats whats going on everybody is trying to understand how bad is it going to be . For how long what will my cash flows look like what do i need to do in terms of cutting back my spending to be able to survive. Thats not even the Small Businesses, which you know are just at this point getting crushed around the country given most of them, many of them are not open the base of the country, the 85 that is small and mediumsized business for the most part is closed. What does that mean for stocks you come in i think we all talk to a lot of people whom we regard as being thorough about stocks theres a disconnect between what stocks are doing and what people expect the economy to do. Stocks have long since divorced themselves from the actual economy, only because theyre big internationstional companies im going through the technology stocks, do i care what theyre building here . They tend not to be here theyre in china when i look at the ventilator business, the gown business, weve long since outsourced these. These are not american businesses we had 900,000 seamstresses in the country in 1990, now we have zero can we make them here . Yes. For the most part were a Service Economy. The Service Economy for lack of a better term is just shut down. Jim, it does bring us to the week, we have ahead of us. We will get more data which is likely to be bad well get the end of quarter flows. We have competing calls tactically from the likes of goldman which says dont trust last weeks rally, versus Morgan Stanley which says forced liquidation is behind us, and we stick with the view that the worst is behind us if you have a 6 to 12month horizon . Where is your head great question. I look at the companies that are involved lets take social media. Social media is part of f. A. N. G. Its clear that engagement is way up thats great its also very clear that advertising is way down. Thats bad we have a lot of things that are really like that the fueling of the economy, whether for entertainment or online, for autos, they require demand. When youre trying to put food on the table or buy a car you are trying to figure out whether you have a job or whether youre going to be able to buy at ross stores. In the interim you have to figure out if youre paying rent or do you skip rent and hope nobody catches you i think were at a moment where its a freeforall. In a free for all, its a tough environment to take a big swing at general motors. Yeah. Does remind me other upgrades to watch as well, which well get to including ulta, procter and others when we come back, the president and ceo of cigna, david cordani, will join us this monday morning. Yes. Its the first word of any new discovery. But when allergies attack, 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. Welcome back to squawk on the street. Lets get over to Bertha Coombs who joins us with a special guest, hes cignas ceo, david cordani. Thank you very much cigna was the first insurer to move to say it was going to cover all of the costs on covid testing, now its joined with humana to say its also going to be covering first dollar costs for all of the treatments for coronavirus patients, not just hospitalizations, but also future medications, future vaccines, and theyll do that both in network and out of network. David cordani joins me now to talk about that decision david, how did you come to this decision and what were some of the considerations that you took in good morning. As you know, were a Global Health service company, in a time of crisis, which is what we confront right now, were telling ourselves to step forward and help our customers help our patients and provide them peace of mind, appreciate your reference to the testing. We also leaned in with expanded telemed resources, 90day delivery of medication, in our announcement this morning we acknowledge were redeploying hundreds of doctors and nurses to support outside third party telemed choices. Were stepping in to help customers, and in this case as we step back and see individuals fighting the health challenge, we wanted to take the financial burden off their docket. Its a simple condition, complex, but it is putting the customer and patient front and center and trying to provide them peace of mind its a complex decision, s p global analysts estimated in a severe pandemic that the medical costs for insurers could be near 1 100 billion as you take on this responsibility and some of your peers likely will follow, how are you going to be able to handle that . Again, we acknowledge were in unprecedented times lets step back and understand what were saying here an individual has an out of pocket financial responsibility tied to insurance, whether its commercial insurance, individual exchange insurance, medicare advantage, medicaid, were saying were taking that individual responsibility on ourselves. Backing that is a large responsibility in regards to the government with medicare or medicaid or the corporate employer which remains so were taking the portion for a Covid Patients treatment and were taking that financial obligation on. Thats a large diversified Financial Service company and Health Service company we weve were well positioned to do so well track this over the next several months as we serve our customers and patients stepping back we think its the right thing to do. Individuals are in hospital situations dealing with treatment, we wanted to take this burden off their lap and off their faap and provide them the peace of mind they deserve david, thank you so much for what youre doing. Jim, good to hear your voice. Thanks for coming on mad money a bunch of times, too im trying to figure out the priorities, what would help you the most a fiveminute test that would tell you what youre what some of the lives that you back are seeing, or something about more personal protective equipment because it does seem you go through it quickly, thats hurt the process in hospitals. I know its difficult to balance these, but i feel like testing, testing, testing would really help cigna ill boil it down into three. Weve been working every other day, theres a group of ceo leaders who come together crossing hospital, lab, home health care, Skilled Nursing facility, Pharmacy Services, to ask those very questions you hit on two of the three. One is ppe we need to have the ability to get the ppe or the personal Protection Equipment to the right place at the right time. And the way in which the country is rising up to that is quite inspiring, though there are hot spots and additional acceleration necessary in the production and distribution. Second then is testing the accelerated testing. Theres a hierarchy. Inpatient first, medical professionals, First Responders second individuals who are highrisk third and others fourth. And then third is what weve all become accustomed to talking about now, social distancing reducing the risk of onset taking on the responsibility to reduce the risk of onset, all americans have that responsibility weve learned now washing our hands for 20 seconds is really important. Weve learned social distancing is very important. If you take those three items, while the medical system is working feverishly to triage those who are ill as well as to evolve therapies and vaccines, thats what we need, those three items plus the medical system doing its work would a would the number three item, social distancing, would that benefit from a National Lockdown or National Travel ban thats not my call. I think you see the country going through different phases of it. First and foremost im proud to see what Corporate America did Corporate America stepped in and aggressively moved to supporting individuals to work at home, for example. We have probably in excess of 90 of all of our colleagues in a work at home situation from that standpoint because of the nature of our business, some people need to be in the work setting. Weve limited that social distancing from that standpoint we provide additional pay for those who have to be at work, whether its tied to care delivery, Pharmacy Service delivery, et cetera. We also offered an additional 10 days of emergency ppo because we know individuals are trying to balance work life, caregiver, sandwich generation, et cetera so number one, corporations are stepping in quite aggressively then secondly, the government has to deal with in from a local to national and national to local basis. Were not a one size fits all country, in this case its not a one size fits all solution, but the intensity is ramping up. More political leaders are finding that more aggressive postu posture, social distancing is probably in societys best interest over the nearterm. David, david faber. What is your sense right now in terms of the Financial Health of our nations hospitals i would assume theyll benefit from the fact that youll be covering all the costs related to some of their patients or the patients who have your insurance. What are you hearing and how will this industry look once this virus passes . Yeah. Theres strains to every business, no doubt about it. I was listening to jims comments before i came on. So the strain is acute as you deal with the hospital and the care delivery part of the equation, obviously were seeing in the country those elective procedures or those deferrable procedures are being asked to be deferred by hospital leaders, but policy leaders and otherwise, thats an extraction of revenue from that standpoint. Conversely theres an onset of Certain Services consumed. Youre vecorrect, the action we took, were doing our part by saying the hospitals dont worry about that part of the reimbursement, dont worry about that part of the collection process, dont worry about bad debt attached to that, we want to support you from that standpoint as you saw the stimulus bill, theres dollars being allocated towards Health Care Delivery services from that standpoint. Well see most cases the strongest of the strong will be there. The strong players will provide support for their brother and sister locations around the country. And some of the hospitals that may be in a little weaker financial state might find themselves in a state of disarray more rapidly. Elected officials need to be prepared to step in quickly to provide the financial backing that they need david, its carl. I thought your answer on testing priorities was interesting because do you think the debate is going to come down to when we get high speed testing at scale and Antibody Testing at scale, do you test highrisk individuals first because of their vulnerability like you said or do we test lowrisk individuals first because theyre the ones who are most able to get back to work i think when the Testing Capacity eanour country testing a higher rate across the board my comment, carl, was relative to the present time. Lets take an example of why i referenced what i did. Working with hospital partners, were able to see that, the priority is to get nonCovid Patients out of the hospital if possible into longterm care, Skilled Nursing facilities or home so our industry works with hospitals to accelerate those transitions, we needed to make sure that individuals were covid negative so, therefore the prioritization of inhospital individuals consuming first. To your point, as the rate and scope of testing expands, and it is, Companies Like quest, labcorp and others are ramping at quantum pace and theres additional testing in terms of speed or type of tests that expand, well see societally more consumption of the testing to help identify individuals at risk or people who may be a symptomatic and carriers from that standpoint. Thats the next thing to come. David, one of the things that you have talked a lot about over the last couple of years is whole Health Mental health help you have expanded telehealth access to Mental Health. Are you seeing people access this in this time when people may not be sick but certainly feeling the stress appreciate the question simple answer is yes you recall that we fielded the largest study of its kind some time ago relative to loneliness and in the United States we have an elevated level of loneliness. The social distancing runs the risk of perpetuating that further. So the ability to have Mental Health or whole person Health Services brought to bear and more easily accessible including, itinclude ing, it including tele is important. Having chronic Care Management, acute Care Management is Mission Critical we see the two cohabitating. If an individual has a chronic disease, about half of all americans do, theyre seven times more likely to be clinically depressed if that clinical depression goes untreated, theres a Multiplier Effect on their health issue and health challenges. Were trying to acknowledge that, understand that and step in and to your point, telehealth is an example of expanding the access and services for the benefit of individuals david, what about cigna itself to say this is an uncertain time is an understatement given that, a lot of the ceos i speak to are trying to figure out ways to pull back. To cut expenses. Are you doing that as well if so, where we agree its an unprecedented time stepping into 2020 were carrying some meaningful momentum as a corporation. First growth momentum, outstanding client and customer retention around the world, expansion of relationship and new business ads to the corporation from that standpoint but to the macro statement you make, theres no way a corporation could step back in the current environment and say given everything i know today, what i thought i was going to execute in 2020 im going to be able to execute it exactly the same it presses the be dynamism of a corporation aggressively were not arbitrarily pulling back on expenses i made the reference where were spending more for colleagues who need to be in the work setting, in the provision of care or the supply of pharmacy resources but we are and we will dynamically reprioritize where and how were investing. We have a very large r d discretionary pool that we have, we have a venture fund, those investments would have a higher hurdle rate right now to be deployed, simply because of the unstable environment that stands in front of us so in a macro level, of course were revisiting, but its not an across the board cut because our 170 million customer relationships around the world still need to be served and were growing in those relationships, we need to be in position to serve them david, jim. Youre an international company. Why are things less dire in germany, very dire in italy and catastrophe in spain i dont think im the right person to give a pinpointed answer if we look back at a few points of similarity, south korea and italy as an example. South korea has a population that is older on average we know covid19 affects the older population more acutely. It seems to affect older males more acutely than older females. Italys population skews older, and older male three, it attacks smokers a bit more aggressively. South korea has a somewhat elevated smoking percentage, italy has a higher smoking percentage if you take that as a population measure, second piece. Its clear south korea was extremely aggressive and constructive relative to what we know today as social distancing and testing. If you look at italy, they were less aggressive to social dirsing even after the country put forth certain mandating. I take the data of the people, age, age and sex mix, smoking, theres higher risk across the board in this case italy secondly, how aggressive one was with social distancing and how one was with testing to inform that social distancing and inform the triaging. Those seem to be playing out as we look at the comparison of spain versus germany that pattern is playing out consistently david, thank you for your time a lot of good information. A lot to absorb. Great to be with you. Lets get to the opening bells here as we await the first ring of the week at the New York Stock Exchange jim, i thought that was fascinating that last question of yours about just the myriad of variables that go into each countrys experience that we have seen so far, demographics, the mix that you have with the elderly, smoking, splupollutionu name it. I think a lot of us are trying to figure out what the heck is the italian medical system bad . Whats going on in spain there really is you get the sense that they for lack of their term, they didnt take it seriously. Their lungs, which are the epicenter of this ill bns, wene compromised. I have a place in italy, go to italy quite a bit. Youre astonished that youre the only person not smoking. I know david was quick to say i dont really know, he gave me answers i have not heard im delighted that i at least understand maybe we are more serious than italy. I feel terrible that the italians didnt figure it out. Very important learning from david cordani. Yeah. Guys, as we were talking to cordani, the president on the airwaves, roeuters says the president plans to speak with putin today and that saudi arabia and russia both went crazy over oil prices. We know crude did become a teenager briefly overnight at 19. 92. The s p futures trades directly with oil. One problem with oil, were not using it the roads are empty. The tanks are all filled up. Its natural to believe even if were Still Producing 13 million in this country, no matter what they do in saudi arabia and in russia, they cant seem to stop the permian. Because of that, theres a lot of dire predictions that oil could go down to 15, 10, unless the saudis and russians let up i think its the saudis that need to let up maybe the president has a Good Relationship with putin, but they never demonstrated to be anything other than our enemy comment it comes to anything economic if you want to know how the s p futures are going to do, watch the talks with the president in an odd position for the president , he wants oil to go higher simply because no one is driving any way, so whats the harm. Youve been calling for him to call up saudi arabia for weeks now. It hasnt happened no. Very unclear that anything comes out of a conversation with putin, one would expect. Youve talked about 20 bucks as being a key level as we watch it hovering at 25 cents above that. There are a number of people listen, you can always find people in any market who think the commodity will go down thats certainly the case here there are concerns, given the demand picture, given the continued strategies from the saudis and the russians that were going to see this become a teenager and consistently so yes who wants it where do we put it we keep pumping. Its not like we can radically curtail pumping. Theres no real demand anywhere. So its certainly realistic to think this is just a classic case of supply and demand where the refiners are caught. We have tankers everywhere, people are betting that wait a second, maybe there will be a quick jump in oil. I dont see that its the most perplexing market. The u. S. Companies dont cut back its not what they do. The Scott Sheffield interview last week with Brian Sullivan was really incredible. Hes talking about tremendous consolidation based on the idea that a lot of Oil Companies wont make it. We are seeing retailers where they wont make it Oil Companies, and then the stock market doing well. Theres a disconnect, but maybe the answer is theres a lot of companies in the s p that are truly Service Oriented companies, maybe the Services Wont take a hit even if oil goes much lower, which could be good for them. Though, carl, it is always important to point out, not that we dont know it, maybe we dont mention it enough, its not just our economy thats like this, india, the uk, spain, france, germany, italy, the list goes on and on here, Major Economies in this world that are more or less shuttered at this point. Its one of the things that theres so much to absorb domestically, you forget that the mass migration thats going on in india now and the Public Health implications of that kind of migration would be mind boggling in a regular world, we would be paying attention to it. Theres just too much at home to deal with. Guys, phil lebeau points out on twitter theres not a single vehicle final Assembly Plant in the u. S. That is running this morning. We were talking about oil. We know whats happening to jet fuel demand, gasoline consumption, and now were having to see these oems respond to what is going to be some bloated dealer inventories yeah. Think about that think about these towns where they have the factories, think about the Small Businesses theres just no theres no work, theres no demand. You see the domino effect. I think that the industrial manufacturing our Manufacturing Sector has devolved into something thats more of an Assembly Business thats why its hard for gm to make ventilators theyre not in the business of making equipment necessarily that would be similar to that versus say making a tank in world war ii or an aircraft in world war ii, which gm was heavily involved in. I say this is the shutdown of the real economy i deal with a lot of short sellers. I deal with a lot of long owners, too. The short sellers are like what are you doing . Why are you taking up these companies . You look at the companies, they may not be the companies being hurt, but somewhere down the line, if mnuchins plan to put 2 trillion into the market is not enough, then you will see another leg down this is a bandaid i think its an appropriate bandaid, its a good bandaid i dont know how long we can just hope things will get better for royal caribbean. The president said yesterday the cruise lines are a great industry but where the demand for the holland american line . David, i know youre not necessarily a cruise taker, but lets look at the idea of the perhaps one place on earth that is is there another place on earth that you would prefer not to be than on a cruise line on the 18th floor please tell me its certainly not an ideal environment for me to imagine. I will grant you that. I can look at you. You cant capture the shot because were so far away from each other when i turn im looking at you were pointing at each other david, you have to pay for this theyre not paying you thats one point right second, when you read about the ones that are still in the seas, dont you find its rather amazing, as i look at you, theres still people theres still boats on the seas . It is you know, jim, it also puts you in mind and, carl, of how behaviors are going to change even when we do get through this right how quickly until we get a vaccine, i guess, are people going to go back to restaurants or willing to go to sporting events, other venues i dont know the answer. We dont know the answer no. One would imagine its not all going to come back immediately. Yeah. I keep thinking about the high five i always i always do a fist bump with david in the morning i cant imagine something exactly more horrible than that right now. Just an unbridled touch of someone who for all i know on the subway this morning. Yeah. Its true. Im looking forward to the nba coming back and then not doing it anymore around the foul line. That will save time. Thats endless. Were going to need a larger telestrator, a giant telestrator at the other end of this so you guys can stand together. Carl, we have room for you down there yeah if our viewers are just joining us, one of the more encouraging interviews of the day was alex gorsky of j j as they announced theyre a lead candidate for a covid19 vaccine, which they think could start seeing human Clinical Trials in september at the latest take a listen. We expect to begin first in human testing in september, but in parallel, as you know, not only do you need a safe and effective vaccine but you also need to have one that can be produced and in very large volumes. Well be doing that simultaneously right here in the United States. We expect to have results, interim results from trials in december, at the latest early january that should put us in position early in 2021 to literally have hundreds of millions of doses available and then by the end of the year up to 1 billion look, just total hope there just total hope, carl. But i understand that, but you have to imagine gorsky has chosen his language in advance very carefully when he says high degree of probability of being successful, why would you walk into that without some kind of data to back you up in the background . Its such a great question. When all of this started, i canvassed the Drug Companies to see who was in position to do respiratory, to have something about this almost all of them said the same thing to me, which is were kind of caught with our pants down on this we dont have anything now when you deal with roche, theyre trying some things now theyre trying older drugs, off the shelf that tend not to work when you talk about the vaccines, which are so important because dr. Fauci keeps saying over and over again this thing is coming back to know theyre this far ahead on a vaccine and regeneron is this far ahead on a vaccine. We have tough times ahead, theres light at the end of the tunnel the light at the end of the tunnel is from very really Big Companies who dont have to say anything david, these companies can just shut up. They dont have to go on air and say listen, we may have something. No one would criticize them for being quiet. No, no, but it is good to hear from them certainly when they have something to offer you know hes a serious guy. Hes not just coming on in some way to tout something. They obviously really believe theyll be in position to deliver something efficacious. Its still months and months away, jim. You know, guys, before we sort of get to the broader market, bob, were up on the s p google shares are down theres an upgrade today right but my old media focus, a lot of those stocks down again, discovery, viacom, fox, disney all done sharply, even though ratings are very strong. There are concerns varied. But what about google and facebook what about small and mediumsized businesses that advertise on google . Arent we supposed to expect that theyre not going to be spending a lot of money for a while . Thats right. Thats why i think you have mixed emotions on what people are saying about google today. I do think that google is not going to make the numbers when it comes to enterprise spend i think that facebook is not going to make the numbers when it comes to small and medium sized spend. Theres a lot of engagement but also a big cutback in advertising. Why not . Its so easy to cut back its one of those things you know the Big Companies say you know what . That we can hold back on thats thats not really important. Then you always have these other companies that say this is when we have to make a statement. This is when we do it. Those companies are not in evidence yet right now we have people saying i dont know, ill hold back the only outfit doing it right is amazon. I think once again, all of us are now used to the particularly in the suburbs, you get you get your knock on the door, you get your doorbell rung, and then theres the amazon box, the guy that runs away, which is what you want right you figure do you spyou spra box with clorox . Do you leave it in the sun the twoday rule. I know. Ibought socks, david, you know i like to buy my socks at kohls i must have pressed the wrong button i have 72 gold toe socks i was thrilled, i knew i couldnt have it for two days as it baked in the sun. Im thinking where did i just get the gloves, then i say no. That is a box full of covid. Covid box. Now i know why my sock order got delayed because jim has been hoarding david and carl, understand that some things theres a priority i dived right in. Im taking enormous risk im opening those boxes very quickly. This is why i cant fist pump you. You dont exercise any of the common sense we all know boxes, two days. I got my wipe right here. Do you wipe off you dont go to the supermarket. I did recently, yeah. Canned foods. Yep canned foods. A lot of that jeffries takes procter and kimberly to buy today, jim, on pantry loading thats their term. Yeah. Its back. When i spoke to hormel, they said the center of the supermarket when you go to the supermarket, theres a fresh food aisle, also the frozen food aisle, you have the milk section. In the middle is the section you wouldnt be caught dead in, things that came in cans, fresh as the day they were canned. Thats whats doing well spam is selling like its going out of style now, i have not i had pumpkin spam earlier this year i found it sub optimal, but people they hoard spam. Its something that is working hersheys is working campbells soup is working but when you buy bread its not holding up its not standing the test of time saltines, maybe. Ritz crackers. Ill go for any of it i think all of us are eating i dont know about you, were eating poorly. Very poorly. You and i understand and no exercise its a good combination. Your home gym is not working . Im walking, but i cant swim how can you walk . Im taking walks. Man you just you have to go for a walk youre a risk taker i didnt leave i did not leave my house this weekend. Thats not a good idea, jim you have to get out. No. Yeah. No. I agree talk to me after the duration we did lose about 250point pop on the dow at the open lets get to bob pisani. Good morning, bob. Hello happy monday look, the markets are opening flattish given the lousy Economic News were going to get this week, certainly i think a victory, the avid 15minute test, the Johnson Johnson news, all of that is positive and goes to the heart of what people need to see for a bottom which is some progress on combating the coronavirus. All of this is positive, which i think is a Victory Health kcare is leading because of the good news we got from the Health Care Leadership groups. Consumers staples doing well tech is okay underperforming are banks and retailers, maybe not that surprising here. If you look at the stuff thats moving in the dow, supporting it, its mostly the Health Care Stocks Johnson Johnson, merck, united health, abbott is having a great morning as well on that announcement there you can see that big move up there for abbott lots of notes over the weekend a lot of people trying to figure out whats going on and where a bottom might be. I think the important thing is we all agreed on the sort of criteria we need david kostin at goldman is as good as anybody else on this, progress on containing the virus, thats the key thing. We certainly saw good news today. Thats why were flattish. Evidence of fiscal and Monetary Policy stimulus working and a bottom in positioning in floats. What does that mean . Lower volumes of trading activity lower vix. Were still not quite seeing that this morning we moved in a 60point range in the s p 500, thats better than 100 it was 100 last week a little lower here. Watch these crazy moves that weve been seeing here in the last few weeks lower goldman thinks lower in the coming weeks as we absorb the economic data. Theyre still up 20 by yearend 3,000, thats a 20 move from where we are right now we could see the market swings in the last week how crazy they are. Remember the lows last monday . 34 from our highs then all of a sudden, thursday we had the enormous rallies, suddenly we were 20 from the lows everyone was saying this game may be over. We ended with a smack in the face on friday reminding us about bear market rallies and things like that as people brought out the history books from 2008 and now were 15 off of the lows. There is no clear indication from the market about whats going on right now i think the key thing is to watch the vix. I spent a lot of time talking to people about what the vix is telling us the march average on the vix is 57. 8 a year ago the average was 14. So were talking about a 300 increase in the vix. The daily volatility in the month of march is about 5. 5 on the s p. What does that mean . That implies a vix of anywhere could be from 80 to 100. Thats the actual volatility, if you measured the volatility of the vix actually, 80 to 100. These numbers are elevated theres no chance anywhere that the vix will drop much until we see this intraday, the actual volatility, the realized volatility drop. The vix now is down a little bit. It was at the open in the low 60s, people want to know what they can see it take to the 40s, intraday swings in the 2 , 3 ranges, not in the 5 , 6 , 7 ranges weve been seeing throughout the month of march. Theres the one thing im watching i did talk to the inventor, the founder of the vix, robert whaley, you can see my interview with him, cnbc. Com, he has his opinions on what volatility index is telling us. Tradertalk. Cnbc. Com for more on that back to you. Very cool, thank you. Keep your eyes on fixed income and the dollar as well. Lets get to Rick Santelli good morning, rick if you look at friday, right towards the end of the session around 68 in tens, 24 in twos. Were about the same yield in twos, but down about five extra base points in tens. Look at the twoday chart. You see what im talking about here we sit at 63, which puts us down a handful of basis points that handful of basis points that impacted the yield curve. Were now under 40 in tens minus twos it wasnt that many sessions ago, we were at 53, 54, 55 so you can see most of the big action on the higherpriced loweryield is in long maturities lets look at a month to date of tens, and what should jump out at you, were under ten basis points away from 54. 54 from the 9th of march, you see that low on the chart, thats the lowest close ever look at the twoday of bunds, down six basis points at 57. On the 9th of march,ent. Whats pareimportant is the dol index gives a great barometer. Were seeing a global nervousness reflected in the demand for dollars its correlated with the higher temperature across the globe, and while this is going on, yields are going down, we cant print soninlInvestment Grade fast enough. Were continue to monitor at cnbc consider on the 9th, we were under 95 on the 10th, all the way up to the 20th, we were zooming for the highs at 102. 81. If youre looking for volatility, whether its the pound versus dollar or dollar index, Foreign Exchange is the place. David, back to you rick, thank you Rick Santelli with the bond report were going to take a quick commercial break and have the ceo of eli lilly joining us next hour stay with us i knew about the tremors. But when i started seeing things, i didnt know what was happening. So i kept it in. He started believing things that werent true. I knew something was wrong. But i didnt say a word. During the course of their disease around 50 of people with parkinsons may experience hallucinations or delusions. But now, doctors are prescribing nuplazid. The only fda approved medicine. Proven to significantly reduce hallucinations and delusions related to parkinsons. Dont take nuplazid if you are allergic to its ingredients. Nuplazid can increase the risk of death in elderly people with dementiarelated psychosis and is not for treating symptoms unrelated to parkinsons disease. Nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. Tell your doctor about any changes in medicines youre taking. The most common side effects are swelling of the arms and legs and confusion. We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. Stocks stable this morning dow is up 250. Down 100 currently up 50 as boeing is the swing factor dont miss the ceo of eli lilly on the race for a covid19 treatment. Well take a quick commercial break. Stay with us lets get to jim and stop trading. Gordon hasket, this time its lets put it this way. Theres a negative piece today by john about 3 m, and what i find disconcert, he takes it from hold to sell. Gm is a dividend risk. 61 years of increased dividend hes saying that theres overhead and issues involving pollution and ground water, he says this could place 3ms dividend at risk we see in germany the government saying maybe we shouldnt have dividends. I think we have to be conscious of why people own stocks fixed income is hard to come by. Stocks are a way to get yield, and right now john is saying that yield is in danger. Be careful if youre buying stocks betting on getting a good dividend maybe the dividend is at risk. Huh you mean, episode. You dont think well import like germany that would be hard to believe. Thats socialistic i think after we cancel buybacks, people are going to say first, our dividend is at risk i think dividends arent at risk from the government. Theyre at risk economically you have to look at each company you own and decide that dividend is safe. If it is outsized there between 8 and 10 versus 3, 4, you may have something wrong at the company. If you cant figure it out, then you should not maybe own it, because this is questioning cash flow and thats going in almost every company i follow thats the key. If says if ebita declined 15 below their current projections, and theyre also adding what they think is the p fast liability. Then you get to a debt to ebita ratio of almost five times thats not good. It goes back to leverage and the companies that have more debt. They thought their Balance Sheet was fine, but in this period its a different story it leads me to boeing. The s p is up almost three quarters of a percent, but boeing is weighing on the dow and why thats flat. Its down over 10 this morning. Boeing doubled between monday, prescient upgrade by goldman and friday and yet, nothing that great happened at boeing given the fact that the bill that passed congress wasnt a bailout for boeing there was a lot of misperception it was it just wasnt strange. Very strange action. Sara there yes, im here good morning, everyone i want to welcome everyone back. 10 00 a. M. On the east coast i am sara eisen with Carl Quintanilla and david faber and jim cramer we are coming from different locations. Indecisive action in the markets. The dow has gone positive a few times. Attempts were pretty much flat right now. Up 24. Boeing as jim was saying having an outsized effect the s p is higher by three quarters of a percent. The nasdaq up 1 as hope around Health Care Dominates the narrative today. J j with a vaccine candidate were looking at testing were looking at Antibody Testing and possible treatments following every single word from the Health Care Providers and the great pharmaceutical companies in this country. We have some data at the top of the hour pending home sales are crossing. Lets get to diana for the numbers. Good morning good morning. Pending home sales in february jumped a wider than expected 2. 4 for the month the street was just expecting about a half percent jump after a strong january the highest level in exactly three years. The numbers are based on signed contracts to buy it remains to be seen if some of the contracts are cancelled. The chief economist for the realtors says numbers in the coming weeks will show just how hard the Housing Market was hit. He says hes hoping for a vshaped recovery with demand being pushed to the fall we dont know whether that will happen yet sales were up across the board but strongest in the west and the midwest. One thing to note, some estimates are showing that this spring while it was shaping up to be an incredibly strong Housing Market for new and existing holeexis existing homes sales this spring could drop about 35 . We are seeing a big jump in virtual and solo home touring. That story just went up on kroi cnbc. Com a nice win in february, but dont expect to see it get stronger in the coming months. Everything is going virtual diana, thank you go ahead, carl part of the new choreography on television. Jim, i want to ask about a few things obviously the stable nature of the equities today the fed said on their website rates on commercial paper across almost all maturities were down on friday. Mnuchin is on the tape this morning saying he thinks the existing relief package could get us through the next 8 to 12 weeks. And says they will release documents and instructions later today for how Small Businesses can start to apply for relief loans. So how much of this stable action is constructive right now . Look, i think that a lot of people when the futures open expect them to be down limit thats been the way to go. The market on friday was just abysm abysmal. Gave up a lot of the 20 the fact is this is a day where you can do something if you decided you wanted to go sell a stock, you wanted to sell an industrial, theres going to be a bid theres no youre not seeing the lets use the stock like sysco. Sysco has been under pressure, and started coming back last week they do have web access. Its doing well. A good Balance Sheet and dividend the stock was at the mercy of the programs when the programs went down, it got hammered heres a day where its relying on its own merits. This hasnt happened in a long time it emboldens buyers, not sellers. It says maybe we have a couple days where the shortterm isnt so bad spain peaked perhaps in deaths italy peaked perhaps in death. The government is not using an unrealistic april 12th but is starting to get very serious about how long this is going to take National Lockdown is a possibility. Maybe a lot of protective gear coming ventilatoring cos coming, scien coming its not a joyous day, but its a day where you dont feel like youre getting beat over the head i think the last few weeks weve all come can to say i know that person who got sick or this time its someone in my family or its closing in on us, and the personal existential was really controlling a lot of the trading. All this will go away if oil goes down badly. There are people who do nothing but algorithms and it says if oil goes down, sale. What people dont realize is that people who do algorithms have a lot of power and pay a lot of people. And as far as the regulators are concerned, it doesnt matter so theres kind of a pipe dream that somehow the Algorithm People are going to go away. Im looking at david david knows the solution which is that algorithms are here to stay and its the little guy thats not the little guy gets blown out because who is the little guy . Who is hell is he . Weve been talking for years about the power of what we call Algorithmic Trading or those employing ph. D. S, people with a background in that who dont have a background in the stock market but understand how to write programs that connect a, b, and c and the various relationships between them, jim. Thats the world we live in. Money has moved into those socalled quantitatively driven models, and, in fact, theyre probably bearing out right now because my guess is their performance is not as bad as your overall hedge fund. Half the individuals who were taught if i buy shares of eli lilly over time,ly do quite well were going to have lily on. Its been a great invest why do those people have to get blown out . Why do they have to have such fear the sec doesnt think anything of it. It seems that there is no anyone arguing on behalf of the person who just wants to buy 100 shares of lily disenfranchi disenfranchised. If youre a longterm investors you can use opportunities if you can hang in there as an opportunity to buy totally look, im just trying to keep people in the business of stocks, because of what i see in fixed income and fixed income will not provide you with enough money if you retire at the age of 67. No. It wont. No. That is one of the keys that we havent discussed as much. Of course, this low rate environment, not that it was low rate to begin with dislocations in the Municipal Bond which has calmed down a great deal over the last week given the feds actions, but worth mentioning the fed a lot of people thought they were money good on their Municipal Bonds, looked at the portfolio and said what . Yeah. The Municipal Bond market has been in disarray in some states. I do believe that theres we dont talk enough about how people live off of mfixed income theres been its great to buy a house, and we heard diana talk about how people are buying virtual homes, but its not great if youre a person who is 68 or 70 and trying to figure out what to do the answer to me had been individual stocks but if theyre driven away by a dysfunctional market, theyre the losers too lets stay close to the idea that the market doesnt have to be dysfunctional today is not a dysfunctional day. I wonder if one of the reasons the market is being less dysfunctional is lets not underestimate the fact that the fed has done some unprecedented massive stimulus or stabilization of key markets like Investment Grade credit, like lowering Interest Rates to zero and starting to buy bonds the fed Balance Sheet 5 trillion and climbing is pretty remarkable and then the stimulus. The relief bill that has been signed now by the president 2 trillion is also something to quote president trump, the likes of which weve never seen before so we are getting the support in a fast time. I just wonder if thats from the underpinning here of the less volatility no, youre right. Look, the fed the previous few weeks. I remember the fed coming to cnbc and i said he had to buy mortgage bonds it was the usual disrespect that i get shown when i feel like that theres some senior guy comes in and i got a yahoo idea. And you know, look, im just a guy to talks to a lot of people. This time chairman powell said weve got to buy mortgage backs. Why . Because Mortgage Rates were going up bernanke fought this hes a revered figures we need revered figures. Those are great to have, but the fact is the fed fought it the whole way last time. And that was one of the reasons why it was exacerbated this time jay powell, he came in with everything blazing. And that made a lot of people feel better because the hedge funds were like this market is frozen and that market you know, and he took a blow torch to everything that was frozen and also to the complainers. It was really kind of cool it was so good to see only a couple rich people crying. Isnt that great, david, when theres only a few rich people crying we do get out our tiny violins. Its so hard. Did you ever try to water ski behind like a 70 foot yacht its a bad game. Not good . Its really bad if youre rich. Lets talk about what were learning about this horrific disease and what were learning about fighting the disease lets bring in glen who is going to talk about what his company does and how hes been involved in fighting covid19 sure. Good morning let me first start off by saying our hearts go out to all the people who have lost loved ones to the coronavirus, and also to the real heros of this challenge, the doctors, the nurses, the professional care givers theyre doing an extraordinary job. We want to do a shoutout to them were focussed on remote patient monitoring in fact, we heard david talking about telehealth and the countrys been educated to what telehealth is now, and if you like telehealth, youre going to love remote patient monitoring what we do is meet people where they are, and allow them, empower them to take care of themselves when theyre at home. And let me tell you why this is particularly important in fact, if your viewers take away only one thing from this segment, it should be that last week it was reported 90 of all the deaths from coronavirus in new york were for people with preexisting conditions or chronic conditions and what the experts have said is those groups of people who are very vulnerable should not be showing up at the er or going to the hospital. They should be staying home. But you need to be able to monitor them to keep them safe at home, thats what we are doing through our technology were happy to be there for more than a quarter of a Million People today and growing, because this has caught the attention of Health Insurers and health providers, and even of the government as well with your data on the more vulnerable population, what have you learned in terms of how vulnerable they are and what sort of conditions are most at risk well, then you think about people with diabetes or hypertension or Weight Management problems, they are not more likely to get coronavirus, but if they get it, theyre much more at risk. And that relates to that 90 figure i just talked about so we have to keep that group of people, again, away from the hot spots, away from where the infections are, and thats at today at the hospitals, at the doctors office, at the emergency room so the best thing to do, shelter in home as youve heard, and, again, if you think about health care in the future, you know, this is probably the most serious challenge our country has faced in a long, long time and yet, after we get through it, we will get through it and well get through it together, but we will get through it, well see fundamental changes across a variety of industries people will figure out you can do education at home theyve figured out how to use amazon, but now a much larger group is going to get their groceries and other goods through amazon and theyre using zoom everybody is using zoom today, and other technologies like that but the biggest change is going to come in health care were going to understand that we can do health care remotely and provide remote tools that people people healthy, and then focus our physicians who are so critical on the people who really need their care not on doing checkups that can be automated today, so were going to see these fundamental shifts, and remote patient monitoring we believe is going to become along with telehealth a new standard of care thats why were talking with our clients. Whether its the large fortune 100 companies or payers or provider systems, or even the government where we have more than 5 million government members who work on benefits all those groups are starting to look at this remote patient monitoring as the way to do things and again, giving people 24 by 7 access and all of what we get from all the other Digital Services we like, but turning that energy to health care that what were focussed on at livongo. I think people should know you got involved because your boy has type one diabetes. I hope hes doing fine he is thanks for asking. Let me parse what you said. Youve got a group thats very at risk, and theyre not at risk because of their own fault, but they really could be helped by a National Lockdown, or a lockdown like whats going on in california do you find the patchwork notion of where you can go and where you cant and what beach you can be on what streets you can be on, do you find it unnerving for your own customers who truly need the protection of a stay at home lockdown . Well, look, we would benefit from a federal leadership. We havent seen it weve seen great leadership from states, from governors from new york, from illinois, from california it would be great if we had better leadership. Interestingly, there was a great study out, and i know you were talking with david earlier about the reasons some countries have done better. Theres a very interesting study that talks about the countries that are used to Wearing Masks and basically thats japan, taiwan, south korea. Ifpan, its very common to see most people forget about coronavirus, just on a normal day, wearing a mask over their face those countries have had dramatically less incident of coronavirus. So one, social distancing. Two, Wearing Masks and three, being smart about getting together in groups i think that is as important as trying to put in artificial lockdowns, because big parts of the economy dont have the luxury of not going to work. Again, we talked about our brave physicians and care givers, but theres delivery people and people who cook for us and people in stores so the lockdown, you know, we want to be sensible, and we have to push people in chicago we closed the running trails. Weve done very smart things to keep people from congregating, and we all have to be good to each other by doing social distancing when i was in the studio the last time, it was the first time we didnt do a fist bump even you are practicing it aggressively, i know and that was before we saw the real spike in the u. S. So i think that there things we can do im not sure locking down certain areas of the country is the best solution, but we know what does work social distancing. Wearing a mask washing your hands all the things weve been told repeatedly, and again, our companies have stepped up across the board by allowing people to use Digital Technologies and work from home and now were seeing the Health System start to embrace Digital Technologies, and once we unleash that genie, it wont go back in. So people will say if i can do my appointment remotely now, i can do it in the future and save the travel time. I think a lot of things are going to change forever. Glen, thank you. We wish you and all your users very well during this tough time thank you very much same to you. Meantime, eli lilly is codeveloping a potential treatment for covid19 with a biotech company. Were joined by the Ceo David Ricks and also bill george good to see you both bill, let me turn this over to you and start us off good morning. Dave, thank you very much for being here we can only imagine how busy you are trying to keep the Company Running at this difficult time with people working from home. You announced this partnership to go in the direction of finding a treatment with antibodies and yet, many of your competitors litalking about a vaccine starting in september, and moderna is in the clinic tell us why you went the route of therapy and how youre coming at it. I realize its only been two weeks joins made the announcement, but whats your outlook . Thank you maybe start as well,today is National Doctors day. And from our company to every doctor in the u. S. , and im sure from all of you in the studio, we want to thank our Front Line Health Care workers right now. This is a serious moment for all of them, and were all thinking of them as they go to their job today to save lives. Its what they train to do were trying to do our part too. You mentioned the therapeutics collaboration we have. And i think across the whole of industry, bill, many companies, maybe all companies, are redirecting all discretionary scientific and medical prowess at the problem of arresting the coronavirus. For us, that falls into two tracks one of them you mentioned, the therapeutics collaboration, were good at making antibodies at scaling them and producing them, modifying them to be more like drugs our partnership has isolated antibodies from human survivors of covid19 and selected antibodies that appear to have a strong effect on arresting the spread of the virus. Were going to try to isolate those own make them into a one, two, or three antibody cocktail. We hope to start Clinical Trials in july. Other companies are making vaccines or repurposing existing treatments weve heard about antivirals and antiinflammatory drugs. We have one of those projects too with an antiinflammatory drug its been investigated around the world to help those who have ards, the acute respiratory distress syndrome. Thats another approach. But across the industry, everybody is working together, and in a very rapid way to try to arrest this crisis. So dave, just to follow up on that, yesterday the fda announced approval for antimalaria drugs without any Clinical Trial work doneeven though people said it could be a year and a half to two if there are promising results for the antibiotic therapies, is there a possibility that we might truncate the usual year and a half or so of Clinical Trials and get there sooner . Is there a way to get there faster or is it pretty much going to take that long . We hope so. I think every signal we received from the tda and other Government Agencies is theyre moving at light speed and would like to see this tested in patients first we need to do a clinical experiment that wont take too long, and then potentially look at either a very large Clinical Trial to expose people who are sick, and tested in the real life, or even a conditional license type arrangement where we can make it available. Interestingly, maybe the constraint might be how much we can produce, and were pulling forward activities and planning around that so we can make enough if it does work so were planning for the fastest possible route, and the fdas move on these antimalaria signals their posture to open up all aperture for solutions its always great to see you. Its jim you mentioned something that is the holy grail youre working on something for ards thats killing a lot of people it killed my father. And when i was investigating it, as you obviously would as a son, i was told this was at hub, forget about it. Theres nothing for ards do you really you think you have something . Theres a number of experts who believe ards happens in covid19 because of the response to the virus itself. Your bodys own immune system is flaring up, and producing a huge amount of response in your lungs to the virus this is actually one of the main problems people have with Oxygen Exchange and breathing in the advanced stage of the disease. There are studies announced with the socalled inhibitors from two other Drug Companies, this is thought to be a promising approach if that works, the approach were looking at likely also will make a difference because it works in a similar way. Reducing that inflammatory response in your own lungs it could keep people from going onto ventilators or get them off ventilation quicker. Theres studies in china, europe and the u. S. Looking at this problem. Well talk more about that as we see the data and we may decide to stand up an independent study ourselves. What a wonder drug. Thank you, david what a wonder drug david, its carl. I hate to ask about father on mothers day, but you do mention some of the different paths companies are taking it feels like your viewers have a lot of opinion about high driving while intoxicated color quinn. It has some preclinical effects. Thats what our scientists advised me theres a number of small studies that look promising. In our business typically we like to do a randomized control study to know whether something is making a difference we havent seen that data here i think the federal agencies have a different job our job is to prove effectiveness. Their job is to protect and promote the human health and their judgment at this point is to move forward with less evidence, apparently thats their call to make. I do think we would all benefit from a randomized control study being done to see the true effect i dont know that would take as long as the number bill mentioned earlier, a year or two. I think you could do it pretty quickly. For our approach with our therapeutic antibody approach, were planning for a relatively short study. If it works, it will work quickly. One would hope if its really an antiviral effect with the malaria drugs, that would be quick as well. The history is not lost on a lot of people. You were the first in the u. S. To mass produce the polio vaccine. You gave us insulin. Do you see this as a moment for you and for your company to be the first to really give us the good news that were hoping for, a medication against covid19 . Where do you stand against the so many other treatments that are out there and testing . Well, i think first, historically the company were an old company weve been a part of those kinds of medical breakthroughs four weeks ago i had a conversation with my chief scientific officers. We said put it all in covid19 were not a viral company, but we have expertise in creating antibodies and auto immunity weve redirected a huge part of our Laboratory Work to testing people in indianapolis, because there was a huge testing shortage here so we created our own test had it certified and are testing about 1,000 people in our Corporate Center from the community. This is an all hands on deck response to me it doesnt matter if lily has the breakthrough or regeneron or Johnson Johnson or anyone else what matters is there is one and it happens quickly what i can tell viewers is working across the industry, talking to other ceos in the sector i have never seen a moment where everybody is sharing information, working with the kind of urgency we have now. Hopefully that will result in a Quick Response from one of the companies. And hopefully we can get back to life as we know it prethe coronavirus. Certainly everyones intention is to get to that point as quickly as we can. If its a lily effort with a breakthrough, so be it right now those individual credits dont matter nobody is talking about credit or profit. Weve all just trying to get an answer to this humanitarian crisis dave, right now were still seeing meanwhile before we come up with a solution, were seeing a fast ramp up its even growing right now and we need help for people. The most at risk group are people with comorbidity, and the leading right now is diabetes youre the leading insulin producer a lot of people are concerned about getting insulin and whether they can afford it i noticed you had this in the morning paper, a full page ad. What are you going to do for the insulin sufferers, particularly those who lost their job and dont have the money to pay for their insulin but desperately need it. Today we launched a National Print campaign and are trying to raise awareness about our Diabetes Solutions center. This is a phone number or you can go to lily. Com if you have diabetes news insulin where we provide Financial Assistance to people having trouble bridging the gap. Whether you have insurance and you dont have enough money to afford your part of the insulin prescription or youve lost your insurance, we have solutions for you. So please, i encourage viewers to call in thats what this campaign is aimed at we have two important jobs as a leading insulin producer one is to make the insulin im so proud of our workers who come to our plant every day here in indiana we make it in the u. S. And theyre coming day and night to make insulin so theres no gap in supply. We have plenty of supply our job first is to make sure we supply life saving medicines then we have to make sure people can get them at the pharmacy counter. The patchwork of health care can be difficult to navigate People Struggle with affordability. We have answers for almost everybody in the u. S. Health care system if youre having trouble paying for insulin and i encourage people to go to lilly. Com and connect to our resource center. It only takes about ten minutes on average per patient we have bilingual operators and can help you thats what we announced today with the print advertisement and actually thats been running for a year and a half. We wanted to reinforce the value of that resource for patients in this difficult time. David, its david faber when you joined jim on mad money on march 13th, you said it may take more than one medicine to recover from coronavirus is that still your belief . Yes i think once you have your becoming hospitalized, you have a respiratory response that is no longer manageable by the individual, it may take several medicines. Most real disease advancements weve seen in recent years have been combinations of approaches. Weve talked about antiinflammatory approaches and using antibodies to attack the virus and there could be pills that could address this. And a cocktail of approaches may be used. In fact, patients are managed today with a cocktail of approaches in the icu. None of them are directly attacking the virus. I think so thats one of the benefits of this all hands on deck efforts to come up with solutions. We may come up with several that together could have a profound impact youve had a remarkable transformation in a short period of time. I understand you shut down all your other suspended other Clinical Trials and doing this 1,000 testing for people in indiana. How are you keeping the Company Running with everyone working at home and trying to get people to come to your factories to work many must have children at home. The schools are shut down. Give us an insight of how you keep the place running at this time as a leader and how you get people the courage to keep going. Yeah. Thanks it certainly has been an experiment weve we had Business Continuity planning but never thought about the scale of this running a Global Company off the internet as it were. But that is, in fact, what were doing. Of course, our plants where we make products, and thats as i said our most fundamental responsibility, keep product flowing, particularly insulin. Theyre operating and workers are coming in as we request them weve given shift premiums and extra resources to those employees, because i think theyre giving up a lot. Coming to make product for patients, but they know thats our purpose and our responsibility for basically every other type of work, were working remotely. Weve adopted technology weve been dabbling in but now are running at massive scale we use a lot of the microsoft suite of tools for Corporate America. They work pretty well. We never thought wed have 30,000 people dialing in at the same time, but they are, and it works. So i heard the livongo ceo earlier. I think hes right in many parts of our society theres going to be more remot working and habits will likely not go back. One of them could be more flexibility for Corporate America workers to work from home when they need or come into the office when they need. Hopefully when we get back to a more regular pattern, people will have more choices that would be a good thing child care, we have child care on site. And those are still open for employees, particularly the manufacturing workers so they can get assistance that way as well david, our thanks to you for all the information. And guidance that youve been giving us and please come back as often as you can. David ricks of lil ly and bill george, our thanks to you. Be well, everyone jim, sn. We have abbott. They have the five minute test perhaps the greatest really one of the greatest ceos of our time creative management of wealth. Hell be the handoff to robert ford the new ceo as of tomorrow we have cloud compaflare. We continue to go with what is covid striving. I think this five minute test could be driving the entire stock market jim j we look forward to it thank you appreciate it. See you later lets get the latest on the coronavirus outbreak good morning everyone heres what we are were going to start with the latest numbers global cases are closing in on three quarters of a million. The death toll has climbed above 35,000 the Police Trucks with Water Cannons are usually used to control riots. Now they are disinfecting madrids streets spain reporting today it has 85,000 cases that is more than china. Roughly 14 of them are Health Care Workers including the head of spains virus Response Task force. Londons underground is still packed with commuters despite the uks lockdown. Britons are only allowed to leave home to go to work, purchase food and medicine or exercise here at home hundreds of worshippers attended services at a church near baton rouge, louisiana flouting that states ban on large gatherings. Louisiana has more than 3500 cases and more than 150 people have died. And the Tokyo Olympics will begin july 23rd of next year olympics Officials Say the date was chosen to give both athletes and organizers time to prepare as always, you can get more on the coronavirus coverage here at cnbc by going to cnbc. Com. Sara, back to you. All right sue, thank you a 1 gain here on the dow. As we go to break, take a look at this live shot. The usns comfort its coming into the u. S. Har mor. Well be monitoring it for you bringing an additional 1,000 beds to help with the overflow of new York Hospitals as theyre overwhelmed by the covid19 outbreak thats hit new york rtul hd. Ar were going to take a break here stay with us boston light, americas oldest lighthouse, has stood strong through every dark hour and bright dawn our country has endured. It has seen the break in the clouds before anyone else. For the past 168 years, weve also stood by you, helping you weather storms like this one, to protect your loved ones. And well do it for 168 more. Lets turn back to todays equity market. Bob is with us weve been doing what we do for a long time. Neither one of us have ever seen anything quite like this that said, there are things you can learn from previous bear markets. And i know youre looking at them for sort of at least some guidance here in terms of what we might expect when it comes to action in the markets. Tell us. Yeah. Bear markets, as particularly big water fall declines as you know, have patterns. We typically have three phases the water fall decline the shock and awe. Massive volume to the downside fear, panic, forced selling. And then we have the side wise kind of volatile whiplash period up the limit the one day my view is early last week was the primary low, and that were in that secondary phase. The third phase, awe you know what experience also is a retest thats typical the retest is usually on less volume, sometimes the level ends up being higher than the primary low. Sometimes a bit lower. But were in this whippy pattern now up and down. My view is on green days you let a Little Something go. On red days you do a little buying if you agree the primary low is in. But well probably have to go back and test at least 23, 50, somewhere in that order. When it comes to trying to be a fundamental investor in the market, particularly given what your expectations are for earnings, you know, where do you start . Do you try to pick off things that look particularly cheap in some of the moves youre talking about . Yes, you do but as weve just discussed, were not in a period where fundamentals matter a whole lot. Earnings and pes are bouncing all over the place, and theres more things we dont know than we do know and thats why the technicals are important. But having said that, youre right. So what i observe, for example, is post qe one, qe two, qe three, were now in qe four, technology and health care were the only two sectors that outperformed and utilities and reits were the sectors that underperformed i think theres lessons in terms of where we want to be positioned bob, we talk a lot about the fed stimulus and the stimulus out of washington d. C. Its happening at a global level. China cut one of the main rates. Australia and south korea both came out with more fiscal stimulus wondering how the market is taking this and whether you view it as stable action, given that weve seen so much stimulus flowing from Central Banks or governments or unstable given that weve seen so much and havent settled down yet i think youre right to make the obsobservations. I would say the market, the environment, the economy, peoples psychology, perhaps most importantly, needed this. This wont fix our economy it will aid it when it turns around and starts coming up the other side, post coronavirus theres nothing stopping this that can stop this except a decline in the number of coronavirus cases. But youre right the massive fire power of monetary fiscal policy, even market reaction, the massive decline in Interest Rates is eventually stimyoulative all the things together should enable the rebound to be quicker once we get there. Bob, i wonder what you make of the reaction function today a. We just got dallas fed minus 70. Its a number we never could have imagined in a prior world jobless claims last week were going to get more this week, jobs friday. How conditioned is the market to handle those types of numbers versus you talk about the case load data when we know testing is so spotty, which is more important to stocks right now . Youreright we are going to witness absolutely horrific economic numbers. But i think thats what the 37 from intraday peak to intraday trough in the stock market was forecasting. It knows before we do. Yes, the numbers matter, and the reaction matters it has a lot to do with the patterns we talked about does the market blink when you get some horrific number or is it just moving on and saying i knew that was going to happen. Thats why i went down 37 as it were so i think were going to have to start looking past these to figure out what going to happen on the other side, and just keep hoping an praying and watching the coronavirus statistics i cannot wait for the Second Derivative to turn negative. The number of new case today being less than yesterday. That will be a nice sign a lot of that will depend on predicting human behavior, unfortunately. Yes bob, energy is also a focus wti falling below 20 bucks its not a large part of the s p these days but if we continue to see the crisis worsen, will it bleed over overall sort of into other sectors and or into the economic view . Im so glad you brought that up remember, if it werent for coronavirus, the headlines would be about saudi arabia and russia not able to agree and that decline. The 21st, 25 decline in oil was that issue in the second 25 was coronavirus. But i agree with where youre leading me on the question that is were already witnessing downgrades in the emergency patch. Were going to see more. Were going to see bankruptcies. I hope eventually some consolidation. This is not helping, because part of what has to happen is a healing on the credit side and the fed with their actions, has gone a long way to make the markets function more normally, but you cant fix the fundamentals with that oil at 20 a barrel is going to put a lot of people out of business and that only exacerbates the problem. So it will bleed it already is bleeding into other things id love to hear that saudi arabia and russia were going to have lunch and make peace. Yeah. Well, hovering around the 20 level, were watching it carefully. As far as investing right now, putting money into park, if you want to do that, what sectors should you go to should you go to the staples or the Health Care Companies or the netflixs with those Companies Standing to benefit from the current economic pluralasis, or do you think about longer term, companies that will do better once we recover from the nightmare . Because this is a shock, as painful as it is, and not a structural problem like we saw in 08 and 1929 im operating under the assumption this is going to be a whale of a recession, but its going to be reasonably short therefore, looking past all of this probably begins to make some sense we started seeing last week these divergences that give me some confidence. Weve seen the primary bottom. For example, there were many days wherel ocks did better than defensive stocks im saying begin to look past this to see what kinds of cyclical stocks aregetting punished and are likely to come out the other Side Technology might be a place to shop along with the more defensive health care. A little of both and bob, finally let me end where we started its the phases you described of a bear market. The idea of a third phase and retesting this primary low is there any timetable we can look back at typically in terms of expecting when that might be the case well, as you know, david, these things take time the average has been six to eight weeks from the primary low. So if were going to be in that zone, i hate to even use the numbers. The standard daefuatieviation ie its another couple months probably month and a half, Something Like that and well see the signs. Well see the market going down, but the divergence will continue the 52 week new low list can expand the vix cant make a new high. If those things happen, we have another leg down bob, informative. Appreciate it. All the best. You too retail news now. Specifically out of macys the retailer announcing it is furloughing most of its remaining work force this week they will be keeping the, quote, absolute minimum work force. A lot of the retailers across america with stores shut and traffic plummeting are having a difficult time with analysts looking at how much cash they have and stocks continuing to get punished and some of their debt including macys gap getting downgraded recently to junk all right sara, thanks for that. Meanwhile, stocks up about 2 here although breadth is not as strong as the overall indices might suggest. A quick break and were back in a moment with markets so volatile, should investors opt for quality or go bargain hunting . Find out on trading nation. Cnbc. Com. Lets get to rick at the cme Head Quarters in chicago good morning, carl. Id like to welcome my guest mike cabana from b of a securities lets get into it. I just read that about six out of ten investors are comfy holding their portfolios waiting this out as a contrarian, a technician, that tells me were probably not near the bottom yet. How do you read such information . We may not be near the bottom, but its fair to say investors are defensively positioned theres a lot of demand for Interest Rates at present. At the front end of the curve we have negative rates. Toward the back end, were near all time lows at least in tenyear rates hurnkers down waiting to see how the virus story plays itself out. According to my math, math w about 153 billion of shortterm supply today, 37day Cash Management bills, 60 billion, 51 billion at three months, 42 billion of six months. I know youve been writing extensively along with your peers at b of a of how short maturity supply is going to go through the roof how do you read opportunities for investors there, mark . Yeah. Well were expecting an increase in yields at the front end of the curve given the supply we think we could see 450 billion or so of front end supply in the month of april alone, which is very, very high for the rates market youve had negative Interest Rates at the front end of the curve and that indicates theres a tremendous amount of demand for shortdated securities we think thats going to be fleegts because of the wave of supply thats going to be necessary in order to fund the deficit and to get that cash out to americans in the next few weeks as the treasury secretary has indicated. Now, with mortgagebacked securities, these are really starting to get a bit kinky because, a, the buying at the central bank is doing is creating distortions and the supply really hasnt hit yet how do you read the mortgagebacked Security Market . How will there be distortions on that front versus some of the other supply side issues like corporates the buying of the central bank has to help these markets to achieve the type of liquidity to keep the gears turning . Yeah. Its a great question. The Mortgage Market weve witnessed pockets of pretty severe ill liquidity across various products in the mortgage space. The fed has been aggressive in buying Agency Mortgages and that has helped a lot normalize that market theres still aspects, nonagency space and other parts of the Mortgage Markets that are struggling right now, and its going to be another few weeks before that works itself out what the fed has been doing is helpful trying to get the Mortgage Market functioning more orderly. If they press too hard in one area you can see pockets of ill liquidity in other areas its a while before that market is more comfortabling bae and b normal. Thank you for the update, especially on the mbs side sara, back to you. Rick santelli, thank you very much were going to take a quick commercial break as we monitor this Navy Hospital ship that has been pulling into new york harbor, the usns comfort, with 1,000 beds watching that dramatic scene with mixed emotions here and we continue to see a rebound in the markets the p 0 s 50up 1. 57 well be right back. Turn on my tv and boom, its got all my favorite shows right there. I wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. Welcome back lets get over to dom chu who has a sector sort for us weve got 7 of the 11 sectors on the s p higher in the day coming off its best week since 2009 one of the under performers is utilities, still solidly higher on date. Shares of Dominion Energy and nisource Interest Rates continue to drift lower making those dividends look relatively more attractive. The utility sector was the best performing sector last week up over 25 sara, i will send it down to you folks. Dom, thank you very much. Watching this market rebound here, health care is a standout and we are looking at our fourth positive day for stocks in the last five. On the health care front, i think the news that you were talking about with jim cramer is the number of companies that are coming on cnbc and putting out press releases, talking about potential promises of hope, whether it is in Rapid Testing like abbott labs, the ceo will be on mad money, on vaccines candidates, j js alex gorske on squawk box, potential antibody treatments like we heard from eli lillys ceo, later in the afternoon i will talk to henry shines ceo on the 15minute finger pick test theyre working on to test people for antibodies or immunity. All of that is being heralded by investors and the public as hopeful signs we could be turning a corner as we continue to watch these horrific numbers climb in the United States and in new york city i just wonder when were going to start to get some real results that they can approve and we can put into mass scale, david, to start to see some reactions and fewer mortalities. This is another rough weekend of news were balancing the hopeful promises against the backdrop which was another tough weekend. It was. And as all of these people who appear from these companies tell us, sara, they are as an industry solely focused on it. You can forgive our viewers and all of us, frankly, though, for having a hard time dissife ferring the difference there are differences between a vaccine, on antiviral, which could be a lot closer or sooner at least and these antibodies which would also be to treat people who already have the virus, but obviously cure them, sara a lot going on there as you point out it is certainly one of the better performers this morning, the drug industry so to speak. Yes we continue to monitor the hospitals in new york city the good news help is on the way. The usns comfort which weve been monitoring coming into new york harbor, passing the statute of liberty and with it, extra supplies and extra beds. Contessa brewer here to explain. Contessa hi there, sara. Yeah, the comfort is pulling into dock here in midtown manhattan. It is coming in under the guidance of 75 professional mariners and more than 1,000 Navy Medical Personnel on board as well as the civilian volunteers as well these are folks who have been trained to respond in a wartime, responded to natural disasters, most recently Hurricane Maria in puerto rico and central and south america, and now theyre coming to the nations most populace city, a city that has just been crushed under the coronavirus cases, and they are ready to help here they are, as i said, 1,000 beds on board, they have 80 icu units, 50 ventilators, all for noncoronavirus patients, patients suffering under heart attacks or stroke or other medical ailments i asked the commander of the medical Treatment Facility who was on deck this morning, i asked him, how do you make sure that people dont get coronavirus on board this ship so everybody that came aboard the ship has been previously screened prior to arrival and then with the patients that we will be receiving as coordinated through the java center will be tested before they come aboard the ship i want to mention the comfort is joining other emergency hospitals so acute is this demand that mt. Sinai will operate a medical tent, erected in central park, 1,000 emergency hospitals are going up in each city borough, retired doctors and nurses, thousands being asked to respond to a desperate call for volunteers. The citys 911 system has broken records multiple times over this last week. More calls coming in than we saw even after 9 11. The paramedics were quoted in the New York Times saying they were there on the scene deciding who gets to go to the hospital, who would benefit the most from treatment, and who it was just too late, that there would be nothing more that the hospital could do for you. An untenable situation for these First Responders there these are desperate times in this city and Desperate Measures being called in. Now, as you can see,