Well get to him in a moment as well lets begin with our gang today. Jim, ill kick it to you first as we look at the markets here, it is this legit is this move of the last couple of days something to truly bank on you know i always want to give you a direct answer but this one i got to give you a solid, i dont know. Maybe im playing it both ways, scott. Ive got 8 cash which means im 92 invested after a move like yesterday, i wonder should i put it to work i think we retest the lows based on the degree of uncertainty than the 8 cash will be be such valuable currency to me buying to me what will be well below market or fair value prices that the mistake im willing to make is hold that 8 cash and not invest it right now. You must have a feeling of whether or not you think were going back to the lows are you feeling you want to move away from that because of what happened yesterday and this follow through today ill be totally honest with you, yes yes, i am. On the back of a positive change on the virus its too early im not saying were all clear, not by a long shot there was some positive news over the weekend but ive got to reevaluate im more inclined to put it to work but im not i got you steph, we did see more of what you could perceive to be good news from new yorks governor in the last hour or so. Stocks seemed to get a bit of a greater lift on that number of cases in new york is slowing. Number of icu admissions in new york is slowing. You take that to think that hopefully the death rate in new york will start coming down as a result of that i pose the same question to you. Its kind of all about that right now. Do you think the moves are legit . Youve seen some amazing moves in Retail Stocks does that seem reasonable to you . I dont think were auout of the woods entirely we have had a nice run off the lows that said, a couple of weeks ago when the fed decide to do what they were going to do in terms of Monetary Policy and proviegd liquidity into the system it was a very, very big deal in my mind i said it on my show, it was a game changer i still very much believe it was a game changer and it is a game changer. Theres a lot we need to do in the bond market and liquidity and spreads. That was something that changed my mind completely then you add in the fiscal policy initiatives and like my more fiscal to come, thats all very good news a flattening of the virus numbers is good. Well see how we do and the progress it makes. The last cup do i feeouple of d seen value out perform growth substantially. You can see whats happening we talked about a barbell. We talked about upgrading the quality of your portfolio. They will really blast off and they have blasted off in the last couple of days. Its very encouraging. Joe, history says you retest the lows thats what you go on. Thats what you look at to say in other instances you go back the magnitude and speed of which we just witnessed. Does that change the calculus on whether we go back and test the lows or not . We went down pretty far pretty fast the end of last week, the return of that sentiment was at a high level that we have not witnessed since the middle of march. I think what youre experiencing now in this process over the last couple of days is because of the optimism surrounding a potential of flattening the curve for covid19 youre seeing a reversal of the pessimism and the market is doing it in way thats acting on that in one short. You had a gap open yesterday morning. You leave a technical gap in the market from friday to monday you had another gap this morning leaving a gap from monday to tuesday. Those two circumstances for me, lead me to believe the market is trading towards the upper end of a range. I dont think you should go back below last weeks low which was 2450 if you are of the belief that the lows from march 23rd are in place lastly what i will say is what i would be doing at this time is id be consolidating the portfolio into companies that number one have low debt levels. Number two are going to be able to have a premium paid for their stock with the absence of buy backs and lastly they will be strong visibility in terms of when their earnings will recover. Back of up 23 on the dow. I looked at the vix and i see the vix at 45. Tell me about volatility and what if anything youre doing in the market today sure. Volatility is right where it should be. You and i take about it all the time in fact, i always like you bringing this to the fore front. Volatility is our projection for how Much Movement well get in the market that said a 45, 46 vix is right where we should be, scott. Were seeing a 3 move in the market today what is three times 16 48 when youre looking at Something Like this, were right where we should be. Should we have slipped down into the 30s . Yeah, if we start seeing movements that are more like 2 then we should be in the 30s as long as were seeing 3 movement or more, were going to be in the 40s, 50s or 60s. I think the volatility is telling you right now especially that range of volatility, scott, which was really tight yesterday and so far today has been really tight as well. Its telling you that the people that were swimming naked when the tide out, all of those folk vs been exposed. The people that didnt have any protection and all of that panic of them scrambling to get protection, thats pretty much by the way side. Doesnt mean it wont come back if theres something bad in the news right now, a lot of that bad news has already been priced in. Would you buy the vix today no. No, i wouldnt like i say, what we have seen scott over the last two weekends has been market different over the past six weeks leading up to the last two weekends, people were nervous into the weekend we see that on fridays then mondays we see rallies. Why . Because the curves starting the roll over. You really think the vix can get down into the 30s and stay there . Well, again, thats dependent on 2 movement in the markets. 1 movement is 16. 2 is 32 you know the math. When we see 2 movements out of the market and were talking in p terms right now, when were seeing 2 moves, yeah, we will be back down there in the 30s. Wii not seeing the moves were seeing people scrambling and going in and saying at this level im going to buy this, this and this. They are jumping, not stuff but the market in general is combination of Short Covering and people jumping in looking for where is that fallen angel that six months from now will be significantly higher those are the people driving to 3 and 7 moves like yesterday. I was laughing, scott, when people were saying why isnt the vix lower with the market up 7 . Im thinking because that vix is 112. Its something we stayed in the 40s. I sense a little more optimism from people but yet youre really the only one who is making any sort of moves to buy anything that i can see from this notes that i have in the market youve added to wells fargo. You have added to ratheon, cocacola. Why . I have been adding for the last couple of weeks some weeks it feels better than other. All i can do is dollar cost a r average. If i believe we do get through this pandemic and we get a virus and the economy to start working again you mean a vaccine . Im sorry, the vaccine. Some of the levels we have gotten at. Sdwr just a week and a half ago wells fargo was yieldsing 8 its now 6 . He hired four of his former colleagues from jpmorgan they will restructure and recost i like the name. Its down 45 on the year. On raytheon, i love this they have completed the deal they have a very strong backlog. Good Free Cash Flow generation its also yielding 4. 7 . To me those two names are very exciting what about some of the other names. Sorry to interrupt you what about what i mentioned at the top. Industrials are up almost 30 . 30 off of their lows. That doesnt give you pause at all wondering whether those moves are justified especially in some of the retail names . Theyre down 50, 60 . Deservedly so, right . I dont know. Some of them for sure. I think there are structural problems with macys and kohls and nordstrom. China is coming back and the stock is down from 150 and it got to 40. That to me is like it has a franchise that is worth something more than 40, in my mind its going to be volatile. It was very painful to own it on the way down i just kept on slowly picking away because i do think in a years time it will be higher. You cant paint the same brush with every single discretionary company. Thats why i was buying coke thats why i added mcdonalds thats why i added to starbucks. All these companies, great company, great market share, awesome Balance Sheet and some have good dividend yields and they got thrown away with all these other more speculative names. You own some wins of the world and you just stay disciplined and stay calm. Sf the dow is gain of 720 points tom, thanks for being here great to see you. Is this legit yes id say the way your viewers might want to question this is when did rallies fail in 09, o 2, and 87 thats how much of a loss did they recover before it became a double bottom. That level would be 24. 75 if this was 2009 so you never had more than a 25 retrace or if its 87 in 02, its 20 trace the s p is beyond what would be this is the ceiling and youll retest the low i think the key number is 27. 93. That means you recovered half of your losses. If we get to 27. 93, thats typically telling us were deep into a bull Market Recovery and something that i think we have been writing about is these declines tend to be symmetric. Historically you recover half your losses in half the time you fell it seems absurds to be using bull market in the current environment. Theres a long way to go i feel uncomfortable using those words. Scott, i agree it makes no sense. I would say im not going to try to tell the market what to do. Im going to try to understand what the market is doing and theres three reasons this could be happening one is the crisis could be ending faster than expected. Remember, the white house originally thought two million mortality. It looks like well undershoot that the second is the consumer could come back lhuge which is why th retailers are bouncing if you look at low market value for employee stocks, they are the ones that got hit the hardest. They are the ones that be benefit from labor supply. The third is policy makers acted quickly. If one of those three is true, this is why the market is staging strong recovery. When does the economy have to begin to reopen for your thesis to play out . What upsets it its great question we have written about how if you look at prior market bottoms, stocks bottom before job less claims in 02, it was about six weeks and 09 it was roughly three weeks. Basically, four jobless claims at the bottom. Gdp takes another year to recover to its previous level but stocks are already deep into a recovery i think the first of the jobless claims the number could be peaking within the next month. It means the march 23 could be the low. Your idea sounds like a v shape recovery yes i know its the least logical. I know every one thinks its l shape or square root v just seems impossible even if its a l shaped recove recovery its the symmetry of it. Im looking at the places you suggest investors should be buying what you call the epicenter which is around discretionary names, airlines. Yeah. Really . Yes again, i know this sounds insane in 2008 if this was october 08, the interim low and five months before the final low, during the great financial crisis, the best performing stocks were those that were hit the hardest. It was the banks and the industries and the materials this epicenter is what we said social distance victims. Casino, hotels, restaurants, retailers. Government is not going to blame these companies for these tsunami and they are also ben fi fitting from a drop in labor markets. Gap had a 19,000 market cap for employee if they are able to get rehire labor at lower costs in future, they have a Better Business model. I think thats what the market is trying to tell us i was going to let you go i want to stick around because i want to bring in market who has a good read on whats happening many the the credit markets. I think we can have a mash up conversation with our gang, you and mark as to what really is taking place and where we might be going from here mark, welcome back our weekly visit good to have you back. Pleasure. Did you have a chance to listen to tom lee . Yeah, i did what are your thoughts on his view of the market i hope hes right i dont think he is. The reason i dont think he is and i apologize, is just whats different between 08 and the different types we have talked about is people after those events were all willing to get together again my question and my fear is how long will it take for people to go back to resorts how long will it take for people to start flying again . How long will it take for people to get on cruises . I believe they are going to but they cant go back to the levels they were in using history as a guide. That just doesnt work because this is going to be different. Theres going o the be a lot of we wea weariness. A company that has a ebitda do they go back to that i dont think thats been answered at all yet. Tom, why wouldnt marks view have a much higher probability of coming to pass than yours thats what this is. Its a probability business when youre trying to game out the economy, game out earnings game out where stocks are going to go. I 100 agree with marc in the sense my intuition and logic tells me how will people go back to normal. Every time someone cough, well think they have a disease. When i look at hong kong, sars, 2003 where people were locked up for 45 days, and it did take a long time for the economy to recover, people celebrated the day that we got hope that the cases and the pandemic was easing and the stock market recovered way, way ahead of gdp. I think thats what we have to keep in mind i think there are permanent changes. Were going to be deurbanizing i think people want to be in the suburbs now and more people that want to work from home i think people are going to want to resource. All three of those are big capex stories. I think people might have a better social balance. Its a great point i dont see how we can get back to normal but as soon as the weather turns nice, people do want to reengage maybe the market will be a lot faster i dont know how you can one breath say well have a v and in the next say i dont see how well get back to fully normal one thing to keep in mind is like when you look at the retailers, opx or many of these social distance stocks, their biggest expense is labor cost. They can reengineer their businesses after Home Builders did after 08. They were able to increase their market share on a depressed level of starts. This might be whats happening with the epicenter stocks. They will reinvent their Business Models as well. Sg joe youve heard from both whos right . I have. Ill go back to what i said before the market is chasing away the pessimism of last week lets not make mistake of believing that what tom is saying is that you want to go out and you want to buy these companies that have been the social distance fallen companies. Theres no corporation that will put an employee and endure that liability over the coming months without a fair understanding, number one, is there a therapeutic and number two, how is the actual construct of reopening the economy going to occur. Thats why i said before, i think you need to be consolidating and focusing more on companies that have that quality. Before, i think tom mentioned 27. 95. I feel optimistic in this process. Were chasing away that pessimism. Were clear lir goily going aft level. We need an understanding of how to reopen the economy. Theres a behavioral part of this conversation and thats the one that you were having in the debate with tom lee about what a new normal really looks like then theres is the backdrop and the floor of everything that the fed is doing and everything that the government is doing to be supportive of the economy and a reopening of sorts when you get one. How do you play those of for us its Pretty Simple i apologize. I think the markets and equities have come back i think thats great for us, time is going to dictate whats going to happen how long is it going to take it is three months, is it six . Is it a year nobody knows for us the simplest way to play it is to buy the senior debt the longer it takes, the value that well end up getting destroyed is that of equity or sub debt the shorter it taketakes, the br it is for equity for someone like us its great. I dont know the answer to that. I can buy debt, im going the stay at the top of the capital structure. If things take longer, its okay you bought Carnival Cruise debt, is that right . We did. Think of that one. We bought that were making 12 on that it will be 7 billion of debt related to 30 billion of value thats good news ive got a lot of great collateral except for one thing. My collateral is cruise ships. How long does it take for people to get back on cruises if it take yous three months, thats great for the equity. If it takes two years, ive got the luxury of time they will be able to pay me for those two years and ill get taken out sooner or later. Youre betting on the latter, it sounds like i dont know. I hope its the shorter for everybody because i think thats what we all want for me, i worry its going to take longer. I just dont see unless theres a vaccine, i dont see myself going to a casino and kiting down next to a person right next to me and people right on top of me any time soon the saudis taking a stake the what did you make of that . I think it makes sense. I think part of it is there is a belief that people are going to go back to that. As long as you believe its going to happen within the next year, youre fine. Thats why it makes sense to buy the debt any other debt buys you had in that same arena, if you will, of hospitality, travel, things like that . We have been buy that in the 50s. Youve got quite a bit of paper that you can buy its how quickly everything come back do you feel better, overall, about the credit market . I do. I think the fed has done a great job. I think now its going to be back to what we always invested in which is really Good Companies that are all over today or that dont have as much access to capital. You need to have a cash flow if you dont have a cash flow, youre going to have some issues jim, weigh in on what you heard from tom and mow marc. I think these are all good thoughts i want to add something to the conversation i look back and i was in 2000, 2002, there are knock on effects that take a fragile market and cause us to retest or set new lows we have to admit, number one, the market is fragile. Yes were nicely green today and yesterday but its fragile you think back to 2001 obviously, it was a horrible external event in nel9 11 in 2002 there are with the events of the accounting frauds. My point is i do not want that to happen. I dont want the wish to be father of the thought. We just have to recognize that anything bad that happens, thats unexpected now, is going to be hard for the market to accept in january we were in a quasi shooting war with iran that would not go over so well i cant say whats going to happen im saying thats why bear markets last longer. I think we need to be careful. Im holding some dry powder for that reason. Tom lee, what are earnings going be in the Third Quarter . We have written about how the hint of earnings at the moment is 9 per month. You dont really know, right . Yes the s p earnings will probably be zero or negative in the Third Quarter. What will they be in the Fourth Quarter that may be positive, scott i think the next three quarters earnings safely to say is zero for the s p. No more earnings from the s p. The market is still going to magically go higher and maybe even hit new highs sometimes next year on zero earnings for three quarters in a row . Yes only because when youre paying 15 times your earnings, youre paying for 15 years or 60 quarts quarters of eps. The sum of the next 57 quarters is still 4,000 for the s p just growing at inflation which means the s p is trading at half of the sum of the earnings for the next 57 quarters thats the reason why at bottoms you cant do current e you have to look at the future e. Okay. Youve put your neck out we will see. Thanks. People are dialing back their expectations you are willing to not only put a foot in the pool but it feels like youre on the divering board. Youre about ready to get all in hes doing a cannon ball. Thats what hes doing he is well see what kind of splash he makes if he lands straight on his back tom, we appreciate it. Well talk to you soon thank you marc, give me your last word as well. Its quite obvious you think thats a bit too roes sy of a vw i think were going to get back to normal thats fine. The question is how long does it take i hope it ends uptaking a shorter time but it just cant youre not going to go back to full employment. Youre not going to bo back to rehiring every Single Person were not going to spend the same amount of money that we did. Things are just going to take longer and because of that, you just cant have a v shaped recovery i wish he have right its impossible for it to happen i was going to let you go but joe as a question for you. Its important. This is something thats being talked about in the credit markets. Could you share your view on the landrys leveraged loan deal from yesterday it seems as though its over subscri subscribed is this going to restart the demand for the Leveraged Loan Market i think what youre seeing in market is every deal that is coming out, the reason they are over subscribed is because youre just priming all the unsecured debt anything that today is three to four times over collateralized everybody wants a piece of that because youre not worried abou the risk thats whats going on thats why you have landrys anything where youre over collateralized, people will sign i for. Well check in with you in a week thank you straight ahead, russia says it will attend the opec plus meeting later this week. Goldman sachs p is with us is jeff sticking with s hi target hell tell us, next. Es is well aware of that. Which is why were ready to listen. And ready to help you find opportunity. So. Lets talk. Edward jones. Its time for investing to feel individual. Our Retirement Plan with voya gives us confidence. So we can spend a bit today, knowing were prepared for tomorrow. Wow, do you think you overdid it maybe . Overdid what . Well planned, well invested, well protected. Voya. Be confident to and through retirement. Deadliest day yet with 731 deaths he disagreed with asked if the daily reports are numbing new yorkers reaction to the pandemic i dont believe we lost a Single Person because we couldnt provide care. People we lost, we couldnt save despite our best efforts no i dont see the numbness i dont believe new yorkers see the numbness voting is under way in wisconsin for that states primary election despite the governors stay at home order. Two courts have ruled the election could not be postponed. Many voters are Wearing Masks as tlien up to cast their ballots nbc news reports the federal bureau of prisons has brought medication to treat prisoner who is tested positive this has the debate continues over the drugs benefits for covid19 patients. Scott, back the you. Appreciate. A meeting of leading Energy Producers is less than two days away and the focus will been o the prospect of historic production cuts. Jeffrey currie is the head of Goldman Sachs commodity. Welcome back thank you what will we get in couple of days the estimates, you could drive a truck through them i think what everybody appreciates at this point is they are just too little, too late 10 to 15 and the surplus is 20, you cant do anything about it we think the loss and demand is probably like 26 Million Barrels day right now. The key point is to remember that oil sits in the cross hairs. It creates social contact and globalization, the two things were trying to stop its priceing in oil hasnt been the same since joes report and moments later the president s actual tweet. Are jougtsing that wh ingyou su that came into the market from the president s tweet was not well founded well, lets look at where cash pricers are trading now creating canada, 13 barrel. Crude at midland, 2150 even the brent cash price is trading 6, 7 on your screen i think the key point here is cash doesnt lie its only being priced in the forwards were looking at wti 26 joe, you have something for jeff i do. Im wondering how much of a discount in the price of oil do you think there is that will return when we see the demand evaporation dissipate and the economy is open once again our target is 55 a barrel. The return in supply well have to shut in a lot of production globally. The return in supply will be l shaped the return in demand the v shaped you can think about all you will do is go into your driverway and get in your car and start driving. When you shut in wells due t hitting logistical constraints, it will create congestion. That will stop up the able for oil to move. They shut in that production and in some cases youll do damage to that production where you cant bring it back online when you think about that outlook when the system starts to normalize, youll end up with a sharp rebound and in demand and supplies likely to lag one quick point is when you think about the risks around opec, were trading june barrels right now. If you used the chinese prototype, we could be normalizing by june. If the economy gets into a reopening process any time soon, what potential dollar amount does that mean for your forecast were trading somewhere around 30 a barrel. We could push this up 10, 15 a barrel thats our outlook towards six months i want to be Crystal Clear here. I dont have a crystal ball that i can look into and be comfortable about when that normalization process. We do see positive events in terms of looking at the viral infections youre being especially tactical in the way youre looking at the price of crude oil. Maybe in a way that im not suggesting that you dont normally do that however, because there is no visibility on the other side or when the other side can first be walked on, youre having to make these especially tactical calls because thats all you have to work with, am i right . Let ees think about the difference between commodity and earnings they anticipate the future commodities are spot assets. The price of oil has to clear the price of supply and demand today. We look at where the cash prices are. They are telling you the situation is bleak today each one of those prices are connected to that cash price through a cash and carry arbitrage. They cant get too far out of line from fundamentals or you get in trouble its relatively Dangerous Levels always gootd to check in with you. Next, fangs in focus a number of bullish calls. Always watch our listen to us on the go were back after this. I wanted to help protect myself. My doctor recommended eliquis. Eliquis is proven to treat and help prevent another dvt or pe blood clot. Almost 98 of patients on eliquis didnt experience another. And eliquis has significantly less major bleeding than the standard treatment. Eliquis is fdaapproved and has both. Dont stop eliquis unless your doctor tells you to. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. If you had a spinal injection while on eliquis call your doctor right away if you have tingling numbness or muscle weakness. While taking eliquis, you may bruise more easily. And it may take longer than usual for bleeding to stop. Seek immediate medical care for sudden signs of bleeding like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planed medical or dental procedures. Whats around the corner could be your moment. Ask your doctor about eliquis. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Edward jones is aitswell aware of that. Et. Which is why were ready to listen. And ready to help you find opportunity. So. Lets talk. Edward jones. Its time for investing to feel individual. Were back several street notes are out on the fang trade i want to start with apple as eve evercore calls it positioned stephanie, you have bear case, 200, bull case, 500. Whats the link case either of those dont make sense to me. I can give you a number and its like finger in the wind. This company has a phenomenal market share it has a great Balance Sheet it has a tremendous Free Cash Flow generation that they are returning to Share Holders they have a great product. That is certainly going to be disruptive in this pandemic and the slower global environment. This is exactly whats happening. Its down 15, 20, 25 . Its Company Really absolutely you want to nibble at. When we come out people are going to go back and buy their products they have changed their model to have more recurring refr knvenu, higher margin products thats positive for the long term i dont know about target, i think 500, 200 is silly. I do think longer term the stock is higher. John, im going to go out on a limb and say you agree longer term the stock is higher i think everybody would make that case. What about more tactically thats what you do every day youre a shorter term person where do you think the stock is going . Its been fighting with its 200day moving average which is basically 251, lets call it it got down to that on the first wish lower covid started to panic the markets. The second time it burst through there and got the biggest 220s now were back above the 200 day. I like it here you can buy yourself another 8 or 10 of down side and still own one of the best companies in all the fang names i added to both on the dip i added the both with call stred stock. Understood. Joe, i find i interesting this the market and you have expressed that view, youre trimming amazon, microsoft and apple. I dont get it why . Thats Portfolio Risk management ive concentrated other names into specifically apple, microsoft and amazon over the last week and a half just from the construction of the portfolio now, these positions are just getting way too big. Theres a correlation between the u. S. Tenyear treasury yields moving lower and the fang names out performing in that environment. Why . The confidence answer would be because these are growth visible names in a world where youre seeing yields compressed expressing a challenged growth environment. Youve seen a little bit of an up tick in treasury yields once again. By no means these of the three, four and five hitters in my line up they will remain there for the duration of this process and looking forward into the future. From a risk portfolio stand point ive allowed them to grow bigger in position size that im comfortable with over the last couple of days and now today ive gotten to the point where i said okay, i need to address that, get it back into line. Got you well take a quick break our experts are ready to answer your question, next. Go to cnbc. Com halftime or tweet us well see do you in two minutes. Its a voice on the other end of the phone. A note to say youre on our mind. A willingness to come to you. The world and how we interact with each other is changing. But that will never change who we are at lexus. Now, more than ever, you and your needs come first. Find out what Service Options are available in your area at lexus. Com people first findever somethings goneions mogotten into the office. M, i hear you. Feels like theres no barriers between departments now. Do you think everyone appreciates it . I do. Huh. Forgot my glasses. Serivcenow. The smarter way to workflow. We are back. Want to answer some of you questions now. Joe, coming to you first for john in florida. What about gold . Still see upside you are a fan of the yankee legend so talking babe ruth to Mickey Mantle. Ratio of 3 to 7. Im in gold right now. Deflationary environment and the Federal Reserve is doing what they should. Print it we dont know the outcome will be thats why ownership of gold is warranted right now. 3 to 7. Jersey numbers you got it. Babe ruth, Mickey Mantle your favorite flairs yankees. Making sure the rest of the public knew what you were trying to say go to jim from joe in new york rank these three sectors to invest in. Airlines, banks, oil companies. Okay. A lot in that question at the top of the list is banks at this price. We know the Federal Reserve has the Banking Systems back. After that, look scott, i think you know im a believer in airlines and the main reason is the government isnt just lending, it is grants, preferred status the third one is tricky. Energy you have to be an active investor in energy you cant buy the xle or the xop and e recommend staying at the top of the food chain. Super integrated oils. Let me ask you this what if i came back to you and i said, neither . None none of these groups are the place you want to put money into right now. Yeah. So its a different question lets just acknowledge that. First one is ranking. I know. It is a totally different question but what im saying is that would you recommend that people put money in any of these three sectors today . So, heres the answer banks are a yes. Airlines, look, you can take it in small doses in the bar bell approach you have to have the high quality names offsetting that, a portfolio. Whether thats apple or intel. Those arehave to offset speculae industry of airlines not hotels or gaming i have to state it again on energy i have been consistent stay away from the small and mid cap e p companies. Stay away from offshore drillers, the Oil Field Service companies when nobodys drilling rite now only the super major integrated oils, please. Leaving me with the words i remember most out of your comments there, stay away. Stay away. Yeah. Look there is risk. I mean, thats no kidding thats why i say if you eliminate every place to invest in that space why waste the time to be clever and creative i might as well look somewhere else thats my point. Listen. Thes a fair point. My only comment is, yes, there is risk. If you take it smartly, smartly, im specific of where to take it, there is reward, as well. I appreciate it, jim. Giving you a hard time. All good, all good. In case you didnt figure that out stephanie link from brandon in ohio, which financial stocks should i own right now i talked about wells fargo is the one im adding to and i was a couple weeks ago with 8 and now 6. 7 and the stock has gone up i like it because its a story stock. New ceo. Theres a lot to do to restructure but if you want thats proven is bank of america did an amazing job in the downturn communicating to the public, to their clients and the musters. They have an aggressive cost cutting strategy this is always kind of had a laggard in terms of the yield relative to the group so thats the one to add if you want like a proven winner. The turn around story, as well. Lastly, john, from eli in pennsylvania im a Young Investor looking for a good, cheap company with a covered call what would you suggest scott, just very quickly, you and i talked about apple a minute ago i looked out 30 days into the future those at the money 65 calls, those are the 265 calls, trading for almost 15, scott. I defy you to find a Better Company than apple that gives you that kind of yield over a 30day period. I wrote those myself today against the apple shares that i own, at least part i own and sold those calls so 15 bucks means youre protected down to 250 on this particular trade i love covered rights and i think this is a way to do them. Good stuff. John, thank you for that thank you, everybody well come back and final thoughts straight ahead. 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. Seeing the break in the clouds before anyone else. Together, well weather this storm. Our breaking News Coverage continues this evening on cnbc with a special report. Markets in turmoil. Ill see you at 7 00 eastern looking forward to catching you later this evening we have a bunch of calls to get to lowes upgraded to a buy. They cut the price target to 105. You own depot. I do. Depots held more on a relative basis. Down 9 versus 22 the new management can bring margin but why do you go there own the best in show down 9 with a great dividend yield. Jim, gm got downgraded today. What did you think about the automakers you still want to hold these stocks well, yes but look heres the tug of war. That didnt sound convincing, jim. Sorry let me flush it out. For years we have been saying in a recession the guys like in the last recession could go under. The automakers saying dont worry about it well make money at 10 million cars sold in north america a year well find out if theyre making money and or if they have enough money to survive and clearly they do. But look they cant do more than, you know, one quarter of the absolutely cratered demand so if were still having this discussion in july, august, theres a big problem. I think we are all expecting the economy to start to recover by, say, midjune. Joe, why dont you give me a quick final thought if you would please so, on february 6th, eli lilly trading slightly below 148. March 3rd, 117 you know where it is today 144. Thats the stock i identified at the top of the show and heard stephanie mention. I missed it. Bad job by me. Thats a great stock to own on a dip. John, Something Real quick . Boeing, 160 calls in may, scott. It is only 10 of the cost of owning the stock but those dont show. Appreciate it see you again tomorrow kelly evans picks up our coverage right now thanks, scott. Hi, everyone after rallying more than 7 yesterday, stocks are a tear again today and on pace of the highest levels in a month. The dow up nearly 700 points, 3 gain, slightly smaller for the s p 500. Nasdaq up 2 interestingly and a little bit of a laggard. More indications that the spread of the pandemic may be slowing in hot spots and Senate Majority leader Mitch Mcconnell saying he is working with secretary mnuchin and leader schumer to approve further spending for the Small Business loan prog
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