That we had in the week. The last two days, the price of oil, up again today, the president wrapping up a meeting at the white house and there is a virtual opec meeting planned for monday and opec and oil both on the rise. Small caps, though, they are going in the other direction a week to forget for smallcap investors losing another 5 , and this is a staggering stat which will show you just how bad things really are for the smaller cap stocks just ran the numbers before the show, 132 members of the s p Small Cap Index are down more than 20 this week well dig in more on that. Plus the sba pay check protection act, the Small Business loan program, may be getting off to a rocky start two important guests for you on that the ceo of honeyfin bank, the number one sba loan maker in the United States and the true story of a 125yearold familyowned business trying to get one of these loans and struggling to survive. Of course, we have the crack team with you, guy adami, tim seymour, and steve grasso. Guy adami, not the kind of way we wanted to end the week, im sure no, not a great end of the week and you hit all of the salient point, for sure. None of us are trying top pollyannaish here and giving Silver Linings and if youre looking for one and tim mentioned this last night and the fact that the vix continued to move lower now with the 46 handle although obviously, the market can continue lower and taking volatility out of the market will assuage a lot of concern. So thats a good thing there have been some winners and losers and it was usurped for good reason. Dollar general, for example is within a whisper of an alltime high with the stock which is remarkable if you think about it in this environment and the fact that there seems to be stabilization and another word ill use again and again in the bond market that seems to want to drift lower from here, brian. Tim seymour, you know what drifted lower . It squeaked out gains for the week and the bigcap tech stocks accident qqq, theyre looking weak well, they there was a slight underperformance this week and its something we have to watch and we talk about where the leadership of the market has been and dan mentioned mega stocks i think if you want to see the market take the next move lower and it will come in the form of microsoft and apple and google and amazon to a lesser extent. Look, i think there have been significant outperformance and 800 basis points on the qqqs to the s p. So lets just watch that ink your other risk measures this week. The dollar, im afraid, looks like its reasserting itself and weve had a 2 move in the dollar off of those lows so its taken back some of that move almost to the 18year highs and we have to watch that. Treasury yields, although guy talked about the extreme volatility in the treasury market is lower. Bond yields are telling you what small cap told you which is that these are growth measures of the economy and although if youd said a month ago that youd have 6. 6 jobless claims and the market did what it did, maybe this is a small victory. I think we understand why the shocks are here. The question is the duration of the shock, obviously, the healthcare crisis we have. Yeah. J. P. Morgan chase saying they being see a 7 million jobless claim week next week which would take us to 17 million unemployed in just 21 days. Truly insane dan, lets stick with small caps monday night, i think it was you said if you kind of want to know the direction of the economy look at the small caps, but a long week for everybody and i dont want to pile on, but if the small caps are telling the story of the economy, thats not good no. Guy and tim, and i heard the term Silver Linings and when you think about it, and i dont want to talk about the Health Crisis and thats something that scares the hell out of all of us right now, but when i think about the economy and the stock market, and i think of the stock market as a lens for how its viewing all of these things and in particular you bring up the small caps and there are no Silver Linings if youre looking for whens the bottom its not happening in april 2020, it might not happen in 2020, and i just cant i would love to be more optimistic about the economy and i would love to be more optimistic about the stock market the stock market is fairly insignificant in the grand scheme of things and im telling you that there are no Silver Linings. Were going to break the low from march 23rd down at 2200 and the s p 500. The only thing you have to decide right now is how much cash do you need and how much cash do you want from an investment standpoint when we do break those lows and the other thing ive been saying time and time again over the last few weeks and there are no v bottoms and they are far, far from now and in the meantime, be prepared in the long slog economically and in the financial markets. Thats a great point. Steve grasso, listen its a fools errand to try to time the stock market for the investor that has a 401 k and stock funds and the etfs should they be dollar cost averaging sort of back into the market if youre a longterm investor now or literally is cash, and maybe certain bonds the only place you want to be . The truth is none of us know where the true bottom is and tim and guy agree with that, as well and the truth is i dont know if its 1700 or 1500 in the s p and for that matter, if youre a longterm investor youre looking out five years, ten years, you should definitely be buying stocks on the way down. You dont want to leverage everything in right now, but what has the market taken its lead from as of late its been oil and thats what disrupted the overall flow today. I think it could have been much worse today if not for that oil meeting that took place in the white house. Oils up 50 and that takes a lot of the small cap names with it and oil is such an insignificant part of the overall indice, and i dont think that will be the saving grace. Ultimately lower, but youre going to get these little rallies within this bear market that were in currently. As all four of you have said, the biggest bounces come during bear markets and thats when you get the violent snap back up now and guys, lets get macro. Lets go micro the three ts, and theyre not topic, although that will be used later on im sure by many people out there. Guy, lets start with you Goldman Sachs upgrading twitter saying this is going to be a longterm winner in part because everyone is stuck on the site watching all of the updates. It should be. Listen, ive got to tell you, the last couple of quarters have not been terrible. Obviously, the stock has been pretty much of a bust over the last three and a half, four months with pretty much everything else, but the concern i have now and it comes down to ad spend i cant really i cant say with any equivocation whatsoever what the ad spend will look like although you might have a ton of eyeballs there and you go back to the 2000 term and unless they get the ad dollars to back it up, im not certain thats a great thing. With that said, i agree with the note twitter seems to be the one beneficiary of this if we can all come out the other side. Twitter, at crept levels if you want to play the stock market is a name you can pick away at for sure. Were all on it dan nathan, thats the amazing thing about twitter. You have all of these people that are on it and everybody is watching it all day long, and yet, it seems hard for them to figure out how to make money. No doubt about it sully, im of two minds when it comes to twitter its obviously become a very, very valuable utility to all participants on that platform, but the fact of the matter is this is a company that even in good times was not growing sales at the clip that you might expect for a Growth Company valued this way. I will tell you this, there is room between here and the 2016 and 2017 lows and if it got down to the mid to high teens the stock would be amazingly cheap right now it has a 15 million enterprise value and its got a brilliant, brilliant Balance Sheet and if it ever gets down there, and im talking about a google or Something Like that or a big media company, i will launch a fund and i will go activist and buy it there because this is an asset that needs to be paired with other social assets or be part of a much larger platform because theyre just not doing it on their own to the sort of scale that would validate it ever becoming one of these mega, mega platforms like weve seen facebook to become this massive behemoth maybe a great add on, and thats the single letter, t, the stock ticker, the 23 target and the low on the street, you think about them as being a Cell Phone Company and moffity says theyre cyclical and the investors say the cds spreads and the insurance on the debt are starting to blow out of it a tip of the hat to nathanson who put a 30 target on the stock when it was 23 higher, talking about the dividend coverage ratio, some concerns just about the debt that they needed to actually delever before you got to a recession and they needed to do some other things what they pointed out in their note today is this is a company that wanted to get more cyclical and congratulations, youve gone into recession and concerned about the dividend coverage ratios, and which is essentially Free Cash Flow and the Dividend Payment and if you think about people that are investing right now in at t because it is paying a 7 dividend and this should be potentially concerning news. Thai give base, moderate and severe recession cases and mild, moderate and severe and they do their analysis very well, by the way, and i think thats the question at t, 40 is still wireless. Their entertainment business is 25 . Im long the stock i do think that their cost of financing has gone down dramatically, as well and thats something i didnt see emphasized in this note and the street listens to them and the stock was listening to them today. All right steve grasso, lets talk about tesla. Its a good news bad news story for tesla. The good news is we got the numbers yesterday and it looked pretty good and the stock up 6 . The bad news is the stocks at 480. It was at 944 basically a month and a half ago how do you read tesla . So teslas all about positioning. Obviously, to your point, its been beaten down, but lets remember, they beat a low bar. They didnt give any guidance and these are quarter numbers and theyre not month numbers and what always happens with tesla is the bulls get overzealous and the shorts get a little fearful and it comes out in the wash and id be a searle of tesla because Going Forward youll be disappointed with the numbers and i dont think theres any place to hide and the market is volatile can, if youre that concerned about the economy and you have every right to be, are we that concerned about people buying 50,000, 60,000, 70,000 cars of course, if youre an investor in tesla, you are whistling past the graveyard, in my opinion i dont get it the bad news is the stock was 900 in january it was the posterchild for the excess going on in this market and it will be a major footnote and when history books write a story on the bear market for me, they shored up their Balance Sheet and good for them. To your point, this company was always a recession away that the product was not particularly affordable for most around this world. The fact that they came in at 10,000, 7,000 better car, and thats about it. Thats as good as it gets for 2020 for these guys so i dont know why this stock is levitating where it is, and it should be lower in my opinion. Youre total pros and have been rolling with all kinds of changes this week, White House Press conferences. Lu you for it. Stay safe, see you on the other side of the weekend. Take care. Coming up after the break, well focus on the business side of the story, from two important angles a realworld company, a 125yearold Company Family owned just trying to survive, can they get an sba loan well hear about their journey and speak with the number one maker of Small Business loans. The ceo of Huntington Bank will join us. It is a Small Business story on two sides. Yoveot tu go hear it and were back with more on cnbcs fast money right after this. 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. Aand were here for you ry day fespecially now,rs. Doing Everything Possible to keep you connected. Through the resilience of our network and people. We can keep learning, keep sharing, keep watching, and most of all, keep together. Its the job weve always done. It is the job we will always do. Welcome back longtime cnbc viewers have realized, cnbc stands for the consumer news and business channel. We talk a lot about the economy and we talk a lot about stocks and lets not forget about you, the Small Business owner which are really the backbone of the United States and millions of you are no doubt struggling. Lets get to that consumer side of the story from two angles theyre the number one maker of Small Business loans in the United States. Steve, welcome i wish we had you on under better circumstances you are in the heart of virginia, west virginia, kentucky, ohio and the entire region and the heartbeat of america, as far as im concerned. What are you seeing . Will we be able to get these rescue loans processed for the government because a lot of these businesses seem frustrated we will absolutely get these loans processed. Were open for business now. Were getting applications, typically one every 60 seconds and well be working seven days a week with our colleagues from now through june 30th and well do absolutely as much as we can to have the businesses survive through this crisis and get to better days ahead. Where do we stand in the process . Do you feel, steve that you, your bank and you and your team has gotten enough guidance from treasury and the federal government to make this work efficiently . We have received very substantial guidance from treasury and sba as of last night and we are prepared and certainly positioned to execute against that there are a couple of areas where there are questions and i would say 95, 98 of what we will see by way of applications we will process and can do that efficiently. Incrossingly, well scale this business and further automate as we go further. So we are in a position to start funding early next week and take care of customers who arent applying open the or through the weekend. Im going to put you on the spot, are these huntington customers or new people that youve want transacted with prior . At the moment, most of the application flow is from existing customers we have a know your customer requirement. Thats part of the Bank Secrecy Act and antimoney laundering act that we are required to make sure we have knowledge of who were doing business with and so that favors existing customers for us and all of the other banks. Well take applications from noncustomers and were encouraging them to apply directly to their bank because theyve already cleared these know your customer requirements. Respectively, those banks are in a position to process the application just as we are with the customer base. That is really interesting and ink it answers a question for our next interview ill let you get back to work here and i know youre probably working all night. Steve, best of luck to you and your family. Of course thank you for your interest. Small business is the business of the United States. Lets talk about one right now thats sort of close to us in the cnbc family. Its operated by the brother and father of a former colleague of ours up in boston and its a 125yearold familyowned seafood wholesaler literally on their fifth generation right now working behind the registers and lets bring in anthony mantia, the company john mantia and sons its a pleasure to have you on cnbc again i wish it was under better circumstances. You heard the interview you are attempting to get some help through some of these programs, personal, real world has been so far . Its been a trying week you have Close Relationships with two banks at the moment who are telling us they just wont take our application today as i said, we dont want to disappoint our employees we certainly dont want to be out of a job we want to keep working, but this loan is just not coming through today. And you guys have tried to keep people on, 13 to 15 employees and taking pay cuts and youre trying to keep everybody employed and we commend you for that. Thank you you heard what steve said you almost have to go back to your bank or banks that going to random banks is not going to work i assume youve gone to your bank or banks. What have they said . They said they need more guidance from the sba. Theyre great, local banks and i love working with them they seem almost as helpless as we do, though. They keep saying after every week with every call with treasury, and they cant seem to get a handle on it in a moment. You were founded by italian immigrants in 1895, i believe, it is. Youve been around for 125 years in the boston area fifth generation, literally the American Dream how long thats correct. How long will current sales and cash flow without help, can you survive . Were doing all right considering the circumstances. Were definitely down. I would not want to go another month like this and this is unprecedented. We have no idea what to expect on the road here were trying to do our part to keep the economy up and running. Anthony, do us a favor keep us here at cnbc how you guys are doing and we hope that it does for you, let us know, as well. We want to stay on this Small Business story best to you. All right coming up, we havent forgotten about the Stock Market Commission and so what executives are taking advantage of lower prices for their own stock and coming up, weve done it for you in the last few weeks and the Top Companies where executives are buying their stocks and a bit of a message to me to two very special people in my life who for obvious reason, i cant be with moowtorr were back with that right after this that the world needs. But right now, the world needs all the good that we can do. To all of our employees and everyone working to keep america strong, thank you. All right welcome back to cnbcs fast money, what executives bought their own stock this week . Weve done it for you every friday lets continual of the data courtesy of insider score. Com. Here we go union pacific, falls another big insider buy. Williams sonoma, first insider buy since 2012 gm, interesting here an executive sold in september and bought back last week. A big reversal at gm nike, big buyer, john rogers of aerial investments and he was a buyer and baxter international, 800,000, and first buy in three and a half years and mgm resort his 25 million and theyre not the biggest and theyre not on here because of a ceo change and a Hedge Fund Sponsor and we have to give them a shout out speaking of shout outs, i normally dont get personal, but tomorrow is the 50th wedding anniversary of my parents down in virginia. Mom and dad, if youre watching, i love you very much and thanks for having me and wed love to be with you and all of us here, but we cant so happy anniversary, love you guys im going to go to break befe or i start crying on Live National television ill be back with options action right after this 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. And welcome, everybody, to another special edition of options action. I am a slightly less weepy Brian Sullivan and i hope youre having as good of a friday as you can and most importantly, staying safe and at home we started off promising and ended the week down and the dow falling again today, 360 points and all in all, not that bad considering the massive unemployment number that we got yesterday and the monthly payroll numbers today, of course, the coronavirus, the pandemic and its impact on the economy and the markets on everybody watching
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