Well, ceo of farr, miller, and washington hope everybody is doing well lets check on the markets today. Give you a look at what stocks are doing this hour. 2. 66 down for the dow nasdaq still down 2 and the russell seems to be either the outperformer on the upside or the down side and that is where we find ourselves today. So steve weiss, let me turn to you as we begin our debate on stocks today i is a uh you said earlier today in a note that youre surprised that were down as much as we are today. Why . Well, you know, none of the news dish mean, the numbers were new and maybe slaps you in the face when you see them versus what your expectation is, so the reality sometimes takes you lower. Look, we have so many pundits and strategists come out and say, im so bullish now or im more optimistic, et cetera it brought some weak hands into the market im not surprised that weve sold off a little bit. Thats the kind of market were in but im surprised we took it down this much however, if you look through it, the stocks that you would expect to outperform, at least what weve been talking about on the panel, are the largecap tech companies, the growth names, which taking it down are the financials, energy companies, and the like so its really a tale of two markets, as its been for some time so its really the velocity of the decline. Im encouraged that this is where we seem to be stopping for now, although last half hour of trading is always when the market has been making a move. So well see, but im still comfortable in my position, still have cash. Not as much as i had a few weeks ago. S so if the market continues to climb, ill do something you used the word reality. Im wondering whether as a group if we think the market hasdy connected itself from reality. If you look steve mentioned the data data is terrible earnings are going to be depressed for a long time. Maybe not normalized, as Lee Cooperman thinks, for two years. Virus is far from finished we know that the reopen is going to be slower than the market thinks, perhaps. And the big gdp states, frankly, are going to be the slowest to reopen so jim leebbenthal, was this market out of sync in that 50 retramt we saw to begin with a little bit, scott i think it got a little bit ahead of itself. And i think were in a market thats in a tugofwar between good news and bad news the good news in my opinion is solely government intervention, which is meaningful. But the problem is, you cant get that every day the fed is not going to fire a bazooka every day. And the season were in right now is one where every day, you do have earnings news coming out, and its mostly pretty ugly, particularly the financials where youre looking at loan loss reserves that are going up in the billions of dollars at each company, and frankly, the market doesnt think that those loan loss reserve increases are enough so the point being is that theres a tugofwar between good news and bad news, but seasonally in this earnings season, you pretty much can expect that every day theres going to be bad news on the earnings front, and there just isnt going to be good news every day to keep it higher or even move it higher. So i think the market just got a little ahead of itself i would not be surprised, scott, to see us go down 10 from the recent high and put us at about 25. 50 on the s p 500 you know ive been raising some cash in order to take advantage of that. Amy, i mean, that was going to be the challenge. Even if we say that earnings season, for all intents and purposes, is somewhat irrelevant, right . We know the numbers are going to be bad still, the market was going to have to get through the slime, if you will, and come out, somehow, on the other side, maybe not covered in all of it and im wondering what you think of where we are now, the big retracement that weve had and look, Jim Lebenthal raises a good point, and its one i hear from others, too when they say the same things i said at the top. Man, i cant believe the market is where it is the data is bad, the virus is here, the reopen is going to be slow what about this, what about that and then they say, you know what, liquidity. Theres a lot of liquidity and liquidity is a powerful thing. And this is about as powerful as its ever been absolutely, scott and its good to see you thanks for having me i completely agree with jim. I would not be surprised to see the market down 10 in relatively short order theres a lot of bad news still to come. The market, in absolute terms, is very expensive. Obviously, relative to bonds, it looks more attractive, but we think not all the bad news is priced in at these levels. We think theres more to come. Its not just going to be earnings this season, its going to be earnings when we get q2 in july so we think theres more downside to come here. Michael farr, what if i say, though, you do have this tremendous fed backstop. As i said yesterday, they basically backstopped the universe and theyre going to continue to do that. And the treasury will continue to print money, as long as it has to do that youre going to have some sort of return, at least an attempt, to return to business in early may. It may not be the biggest states, but nonetheless, youre going to have that maybe the market is pricing in some sort of therapeutic by the summer so there maybe are glimmers of hope as to why the market has recouped a large amount of those losses, despite the fact that the data and the earnings are, yes, we know, bad. They are, scott and i keep trying to make that i think you can make that longterm bull case, right . I mean, sooner or later, all of that cash works its way in i do think we have a shortterm disconnect right now i think when you get when you get reports from janet yellen saying that the economy is going to contract 30 and jpmorgan says 40 and stocks are off 15 from their alltime highs, earnings estimates for the s p 500 are down 16 , leaves you with a current multiple of 18. 5 times earnings, and what are the nearterm prospects for growth or how long will this recovery take it sure looks overpriced, too expensive today, to me, for the conditions that were expecting in a situation thats evolving, with all of the unknowns as hand, i dont understand why were here i think we go probably a good deal lower, through all of this, though, i say, youve got to be data dependent and make sure you have good Balance Sheets and solid stuff. Because theres so many unknowns that we just cant know. The thing is, michael, is, you know, yes, you cant come up with an earnings number for the s p. You just cant you cant come up with a multiple you cant come up with a multiple for the market you just cant but then you do have this bazooka or 40 bazookas from the fed that equally, you cant put a number on what sort of backstop that truly means for the depression youre having in earnings and other areas of the data that are horrific so youre somehow making a leap of faith the market is trying to make a leap of faith that six or nine months ahead, as the market tries to look, that the situation is going to be somewhat, i dont even want to use the word normal, but returning in that direction. I mean, dont you think to me, scott, and i love your opinion. Youve been doing this a long time, it looks like were leaping a little bit too early to me. Everybodys so desperate to get life back to normal, they want the stock market back to normal, too. But when you go through a real bear market, bad news is embraced and good news is dismissed. And during real bear markets over the years, when ive come on your air and said, you know, in a bear market, look, folks, everythings not awful were beginning to see some signs of growth here and there, the feedback i get is awful. Its only when you go through we havent been through that period in this bear market where people hate everything where they really are scared its happened too fast so i think we still havent shaken out a lot of the weaker hands. Maybe we have. I would love it to come back i rejoice in all of these up days it just seems too easy when youre seeing reports from Small Businesses that theyre taking money from the government and they dont know when they can rehire employees and those employees arent going to be spending money anytime soon. Its just hard to see that comeback and certainly, justified these price levels the fact of the matter is, speaking about too fast, you know, there are some who think we came down too fast. Right, you came from new high to new low in the speed of light. I mean, it was unbelievable in the speed and the magnitude of the decline that we had. So jon najarian shut the u. S. Economy so jon, good to see you again. So what are you looking at today . Is it volatility that youre looking for clues on how do you see the market today and why . Yeah, scott, there are some weekly expiration options in the s p 500. And those are what i really focused in on right away because it is a wednesday. This isnt usual expiration. These expire on wednesday, scott. And today were coming and defending right at the 275 strike in the s p 500. Theyve traded twice as many of the calls. But heres the thing i was focused on, scott. Those puts blew up pretty quickly, and then have contracted right back down in other words, theres not much commitment to this 600point selloff, at least by the pros that are trading in there right now. What im watching for is, if we see any attempt at rallies from here, obviously the 800 and the s p is a pretty key level. So to see 27 or 275 for the spider isnt surprising to pop under 2,800 or 280, and maybe we make another attempt up at it. Based on the option activity im seeing today, i think thats what could play out this afternoon. So, jon, ill come back to you. Lets talk about some levels, right . Theres a note out today from bank of america that sort of addresses technically where we are, levels of resistance, and how to think about it if youre an investor today. They say the s p tests 50 retracement, but theres big resistance at 2,800 to 3027. They say that level is where the s p 500 built its bullish triangle ahead of the q4 break out and rally into the First Quarter of this year thats the big battle line resistance, and may offer a powerful source of supply. Now, they do say, if investors sell into that, and were you know, you see where we are on the s p today. If they sell into that resistance zone, the potential for a retracement of the 20 rally from the lows of march 23rd increases now, we dont deal with a lot of technicals on this show, and i dont know what you make of that it ultimately comes down to the bottom line question of whether you think that we are past now, the road of going back, to the lows of march 23rd, or you think its still a possibility, jon, that we could do that . I would say 15, 20 possibility, scott, in other words, im 75 or 80 saying that i think weve already seen those lows and by the way, investors acted in concert and we just saw a wholesale capitulation, which we havent seen since, though lows on the 23rd that you cited, scott. If we dont see that, investors arent going to be what drives us down. What drives us down, of course, are programs, hunter killer programs and basically the sorts of High Frequency trades that could drive us down. But right now, were really not seeing that. Just as another quick example, normally on big down days, and i would say 600 points even in the scheme of things is early big down days. On big down days, we see volumes accelerate and today, we are not seeing that this is actually a belowvolume day. So if this was an upward move, people would say, well, look, theres no equipment by the bulls up here. And im saying, theres no real commitment so far today to the bears. And yet theyve just had their, you know, both barrels loaded up with all the bad economic news, scott. So im surprised, heartened, i guess, by that, that theyre not selling or that 275 strike is holding pretty well. And you do, amy, have a decidedly more positive narrative in some corners of wall street. I know its going to feel like a disconnect with main street, and thats what it does, certainly, feel like, the move weve had in the market completely disconnected from main street, but there was the move from david costin at goldman sachs, which we discussed yesterday, talking about 3,000. There was Piper Jaffrey yesterday, saying 3,600 by years end on the s p. And then today, there is barry bannister, not quite as high nonetheless, he does raise his price target today on the s p to 2950 thinks we could go to 2950 by april 30th the end of this month. So the narrative is trying to be more positive. Sure, the narrative is trying to be more positive, but i think the likelihood that we get back to the lows is higher than what jon cited. It feels theres a lot of reasons to buy the market. Fed liquidity and fiscal stimulus being the two most major ones so what i think youre seeing is money rush back into passive, because its the only place to invest right now and thats pushing up the large cap particularly the large cap tech growth stocks, and youre seeing, you know, microsoft now at 5. 6 , 5. 7 of the s p, and its just not sustainable. Its much harder equation to figure out where youre going to put money and feel comfortable in july when you get q2 earnings, in october, when you get q3 earnings. Sort of where, specifically, do you want to invest and that becomes a much harder question and i think the people who are rushing in and saying, im bullish on the market, but i only want to invest in companies that wont be hurt by covid, just doesnt make any sense. If youre bullish on the market, almost by definition, you think that were going to return to normalcy sooner than consensus and i think consensus is sort of around midmay if thats the case, you actually want to buy the stocks that are being hurt by covid. You want to buy the Energy Stocks and companies of that ilk. If you think this is going to last longer, maybe you want to be in sort of the more defensive stocks but if you think its going to last longer, you have to sort of be negative on the market. I think theres a lot of inconsistencies here the divide between equity markets and the economy is bigger than its ever been in my opinion and i just think that weve rushed back into buying stocks, as soon as we saw the curve flatten, but how we really return to normalcy, the devil is in the details and i dont think any of those have been worked out yet so steve weiss, look, maybe its just a matter of youre buying the haves versus the havenots. And you can be positive on the market and still want to buy the names that amy is talking about. The microsofts and the amazons and the apples, just like before the tilt was heavily weighted towards those stocks, even during the bull market its not like during a positive market, you just have to say, well, you dont want to necessarily buy those. You can go in other places, too. Those are the ones that have led all along. So why would it be any different this time, especially when they happen to be either technology or Communication Service names, the ones who are arguably going to be the ones who are better off. More flush with cash and have more flexibility on a number of different fronts i dont think you want to be any different. Look, take a look at two names that i own they came out, preannounced yesterday, and they came out with good numbers. Which makes any forecast for the end of the year somewhat specious in my view. Because to michael farrs point, we came today at 18. 7 times forward 12 earnings, where the market historically trades at 15 times. Why should we be at a premium with a backdrop that you said. Then there was another company, infi they announced on friday and gave their fullyear guidance, and they blew away the numbers so theres certain areas that are going to perform however, its relative performance in this market, except when the market trades higher thats why i dont think you want to buy energy i continue to believe its uninvestable i dont want to be partners with putin. I dont want to be partners with the khomeini of the moment in iran i dont want to be partners with saudi arabia, because they control the price of oil so i havent been in energy for a long time. No reason for me to go there so, look, i do think the Market Trends down. I dont think it being down 30 was unreasonable or rational maybe we got there too quickly, but we got where we should have been so the question is, where do we go now so its how the economy opens and its who benefits. But weve got two parts of this market so weve got how main street lives and main street lives in the moment the stock market lives in the future its a discounting mechanism so youve got to bet on how long it takes to discount it and what you want to own. But if you make gains off the bottom, it makes no sense to sell them and pay taxes on those gains, unless, of course, you offset them. So im happy with how im positioned still with cash. I think the market trades down and there will be more opportunity. And i invite the technical traders to come in because how you can put covid and flattening the curve in your technical projections is beyond me you also have to consider, as we think about the reopen, michael farr, as to whether its more symbolic than anything else that its more fundamental i mean, more symbolic than fundamental, given the markets that would, in fact, open up first. We dont have enough testing were not going to be ready. Thats the words of doctor scott gottlieb, who we speak to every night on our 7 00 special. Were so far behind in our ability to test the amount of people who need to be tested in order to have a fullsell opening of the economy again and to back that up, you need only look to germany, which, by the way, as were having this conversation, literally just says, germany to start reopening its economy on monday, april 20th that is from Angela Merkle and they began their testing, their wide regime of testing in january. That tells you what the difference is when you start your wide testing in january and when youre running after the virus now, as we are here. And the difference of an economy that is more able to perform at a higher level versus ours, which importantly, hopefully, can reopen but really the output that you get out of that economy thats reopened, but these centers of gdp, like new york and l. A. And chicago and detroit and other areas arent able to even get back open yet. You know, i think thats right. And your point about optimism is really important yes, were seeing a disconnect in stock prices and whatter going to try to see by trying to get the west coast and new york and other things open again. The optimism is really important. When the fed looks at things like inflation, they look at not only the inflationary daytoday, but expectations for inflation. So if we can keep a positive feud economically, as americans and the business owners, if we can still stay encouraged and engaged, yes, thats going to speed things are we going too far, too fast yeah, you know, you kind of it always makes me nervous when i agree with steve weiss, just a little bit im sure it makes him nervous when he agrees with me but, you know i get nervous when you agree with me. Because i prefer to be right well, youre right when you agree with me, weiss you understand how this works. And i think youre smarter, by the way, when you agree with me. But i think that, yes, if you see if we could see what the expectations were, we would know how to deploy our money. The problem is, we dont know what that expectation is and we cant figure out the course of the disease. We cant figure out how long its going to take people to get back to work so actually, to follow amys advice, too, where you continue to be cautious and pick your spots with solid Balance Sheets and, you know, defendable businesses that are going to continue to make money seems to be the most reasonable course for optimistic investors jim, youre still looking at selling more than you are buying with your, i think it is, 8 cash position. From what i look at here, youve trimmed stocks, at least one, and youre still waiting before you would pick anything else up. Yeah, and scott, let me im trying to be not too negative you know, what i did today was i trimmed some Electronic Arts and this is consistent with what ive done in the past few days, of just trimming the winners and its simply because theyve grown too much Electronic Arts is actually up on the year. So a 6. 5 position in it, i dont want to ride that big of a number if it has any sort of a downturn where the rubber meets the road, though, is im not recycling those trimmings back into the market so cash has actually raised to 10 . I dont think i want to go much higher than that, scott. And i think at this point, i would like to pivot to starting to look for where i can add to positions that havent done as well or initiate new positions because there are bargaining out there. But i am going to take my time i think i said earlier that its reasonable to me to see a 10 retrace from the recent highs, put us at 2550 on the s p 500. Thats a round number that im looking for, but not retest the lows not what the fed is doing. You can be patient. I mean, its okay. You can say, im just taking my time im not its okay you dont have to be negative to simply say, jim, you know what, i dont know i dont know where the market is going. I dont know what to make of the fact that the market has gotten so far ahead, theoretically, of where main street appears to be and where the real economy is. And im going to sit on my hands for a little bit with the 8 or 10 or whatever percentage of cash i have, until i get a more advantageous position to enter the market at least mentally. And maybe thats okay. Having your point of view doesnt mean you have to be negative well, okay, but heres the youre absolutely right. And what you just said is that the market hates uncertainty, or at least thats my take on it. But the problem i find is im not saying the market hates uncertainty. Im not saying that. What im saying is, as somebody with a view of the market, its perfectly okay to come on this program and say, im sitting at 8 cash and i may be trimming a little bit here or there you dont have to have the caveat of im trying not to be too negative its okay to say, i dont know where the market is going and im waiting for my opportunity and im going to sit in the cash that i have now until i feel like things are going to legitimately be better well put. Can i just add one thing, though is you have to be careful, nonetheless, about being too negative because there are news items big and small, you know, you talked about the economic reports today. These are numbers that none of us even thought you could physically reach on the Empire State Manufacturing. The appoint is that theres so much that you can seize on to that is negative things like Cisco Systems saying, its going to defer Purchase Price for any customers to 2021. I mean, thats sort of like, whoa, wait a sect. Wheres their revenue going to come from . You cant seize on that. You have to believe in human ingenuity and perseverance that we will get through this, although, as you just said and as i totally agree, i dont know what the path looks like for the next couple of months. So being patient makes sense in that environment i just dont want to get down in the dumps. Well, lets try to get some insights from our next guest on where this all might be going in the next few months. He is making moves in this market and hes one of morningstars ultimate stock pickers. Bill nygren joins us now by the phone. Good to have you back on i look forward to hearing your voice today and i hope you and your family are doing well, youre hale and safe thank you for having me yes, our biggest problem is were going stircrazy, which makes us among the lucky ones. Thats well said. Thats well said so where do we go from here . Take a broad market view first and we can drill down on a couple of moves that youve made has this retracement come too far and too fast at oak mark, were at our worst trying to guess where the market belongs shortterm. I think what we are muchbetter at is saying that there are a lot of stocks out there that sell at low multiples of what we think are normal earnings and if you believe, as we do, that within a couple of years, say 2022, the economy is kind of back to a normal level, that these stocks, if they go back to p\es that are more typical p es are in a position where you can make 50 to 100 over two years where it goes in between, i dont have a strong opinion. But im interested to look a a couple of positions that you have at least youre trying to look through to the other side. When you sell a stock Like American Airlines, isnt that in and of itself a statement that, look, this is a company, this is a sector thats been dramatically hurt here and its going to take an awfully long time for that company and maybe others like it to get to the other side and get anywhere back to whatever normal would be. Well, we Like American Airlines a lot we like the management team. But theyve got a heavily levered Balance Sheet, yet the equity at American Airlines fell only about as much as Companies Like hilton or booking. Com that have much better Balance Sheets and have the same type of exposure to travel so we look at things on an enterprise value basis, and if you look at a company like booking that has net cash, its enterprise value fell much, much more when the stock got cut in half than american id. And that was most of our focus when we were looking at changes to make in march, was, you know, a lot of stocks fell 50 , but the ones that had the strong Balance Sheets, that had excess cash, whose businesses werent as much in the target of whats going to be hit by the covid shutdown, we are much more comfortable with those names im looking at some things that youve bought i see match group on the list. And im wondering what that plays into are you looking for socially distant love connections no, not that insightful well, you must have a view on why you bought that stock in the current environment that we are in oh, no, i absolutely have a view on why we bought it i dont have a view on what kind of social distancing dating is going to what form that will take over the next couple of years. But match. Com, it doesnt look like a value stock on the surface. It sells at an upper 30s p\e multiple, but they are the leader in online dating. Their begg produiggest product, has yet to monetize 90 of the users. And the company has said that engagement is up significantly during the shutdown. So users are finding it a very valuable product as we look out over the next couple of years, the growth in paid tinder subscriptions ought to be very significant tinder is not charging as much as match. Com did when it was a desktop product. We think that gap can narrow and we think the company will make progress on monetizing more of these users that are currently using the free product. So, when we look on a val valueperuser basis, assuming more of them get monetized, this to us is a very cheap stock. I see you bought american comprehensive. Tell us why. Sure, i think a lot of people look back at the crisis and say, a decade ago, American Express didnt fare very well in the downturn it was commercial paper funded then now its deposit and longterm debt now they have comparable rewards to other issuers and they used to charge merchants more than mastercard and visa did now they charge the same so the company isnt nearly as disadvantaged as it was a decade ago. When we think of amex, we think of it as kind of a sum of the pieces that twothirds of this business is kind of like capital one that we own and like a lot, sells at about five times earnings on a trailing basis of course,earnings this year arent going to be that good but theother third is more lik mastercard with the payments network. And American Express right now is selling at about ten times last years earnings if you look at that mix of twothirds capital one, one third mastercard and where they sell today, it would be at about 14 times earnings. So we think theres a good gap to be closed there and how about two others that are new. Workday and pinterest . Right again, thamnames that you dont expect to see in a value portfolio. Thats right. Thats why my eyebrows raise when i see that. Both stocks fell more than 50 during the decline both companies have excess cash on the Balance Sheet so the price that investors were paying for the business actually fell more than 50 we think both businesses are less affected by the shutdown, with workday being primarily a fast provider for Enterprise Software to Large Businesses and pinterest with people at home now, the time theyll spend on pinterest to figure out their wedding plans or honeymoon plans or next purchases and how they redo a room, that time is likely to go up pinterest is we think, can eventually monetize their users at about half the rate that facebook does. But currently in the market, the value per Pinterest User is about onetenth of what you pay at facebook. And on workday, stocks are selling at about seven times revenues, expected revenues, and businesses like workday that have been acquired over the past couple of years have tended to be acquired between 10 and 12 times revenues so both, we think, are significantly undervalued, relative to private business value. We appreciate your time, as always you stay well and well talk to you again soon thanks very much. Thats bill nygren joining us from the oak mark funds, the portfolio manager. Up next, few companies are suspending dividends so far during the volatility. However, there are those that arent were going to discuss the future of dividends, when we come back. You can always watch and listen to us live, by the way, on the hatinbaphe cc p. Lfme is back after this. For nearly 100 years, weve worked to provide you with the financial strength, stability, and online tools you need. And now its no different. Because helping you through this crisis is what were made for. Shbecause Xfinity Mobilehen ygives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 200 off when you buy an eligible phone. Thats simple, easy, awesome. Go to xfinitymobile. Com today. Welcome back lets get the headlines now with rahel solomon. Good afternoon, scott just minutes ago, german chancellor Angela Merkel says her economy will start to slowly reopen their economy next monday she says people should still wear face masks. The head of the World Health Organization now expressing regret over president trumps decision to stop u. S. Payments to the group hes looking to other partners now to help fill the gap he also renewed his call for a united front this is a time for all of us to be united in our common struggle against a common threat, a dangerous enemy. When were divided, the virus exploits the cracks between us covid19 is known for ravaging lungs, but theres also growing evidence that its damaging other organs as well, including the heart, kidney, and liver. The Washington Post reporting early data on intensive care patients shows that up to 30 lost some or all kidney function and how about this in england, a 99yearold world war ii veteran has raised more than 9 million to help battle covid19 captain tom morris said he would walk 100 lapse around his yard before his 100th birthday. He said he was hoping to raise 1,250 as always, you can get more coronavirus coverage on our website, cnbc. Com. Rahel, appreciate it. Only a few have suspended dividend payments. Lets get to bob pisani, who has more on whether it will be a more developing trend here, bob. I think it will, scott. You know, everybody has been a little surprised the last couple of days, because Johnson Johnson and Procter Gamble have increased their dividend, both about 6 . They have very modest dividend yields, both about 2. 5 and im quite sure there are going to be anomalies, at least for these earnings season. First, we know there that thereby Many Companies that have already suspended the dividend suspended it, not reduced it, just suspended carnival, darden, ford, hilton, nordstrom, delta, boeing, for example. All have suspended their dividends. And i think youre going to see more of that out there there are plenty of lists. In the last week, i have seen several lists by companies, strategists, estimating what Companies Might be vulnerable to dividend cuts. Obviously, youre looking at dividend yields that are really high, for some companies, because prices have dropped. And more alarmingly, cash flow has dropped. And that reduces the ability to pay the dividend thats the most important thing. So theres a number of lists circulating. Ill show you some companies that have got really high dividend yields right now with cash flow issues kohls is an obvious issue almost a 15 dividend. They have not cut the dividend yet. Kohls, schlumberger, 13 . Halliburton is also right near sclau schlumberger as well host hotels. Even the airlines, still pretty high based on an historical level. So the question is whether dividend payers should be worried about this because theres a whole subset of people really interested in this obviously, the issue how much a dividend is going to drop. The numbers around 10 to 15 for total dividend estimates to drop this year but if youll notice the group, its concentrated in retailers, energy, hotels, and airlines so, scott, i think its a fairly concentrated group i dont think theres going to be a huge number of companies that do it but if youre invested inthose particular areas and youre a dividend payor, you certainly want to be a little concerned at this point unless youre p g and j j thats bob pisani joining us there talking about dividends. So Jim Lebenthal, tell me, where should we find Safe Dividends for our viewers today. Lets stress the word safe. What bob went through are some high payors that are not safe. There are sectors that will be less touched by the covid19 crisis one is pharmaceuticals, the largecap pharmas. You think about pfizer, merck, bristolmyers. Those have yields approach organize above 3 in certain cases. And theyre unlikely to have their earnings hit to a degree that will eat into those payouts. And then also, certain Technology Names that are high dividend payers. I did mention Cisco Systems earlier. I think thats one that has a very good dividend thats safe as well as take a look at intel and qualcomm we know the Semiconductor Space has been strong. I think it will continue both through this crisis and into the recovery. And those dividends are pretty tasty there. Mike farra, good for you you own p g and j j, and who would have thunk with the moves theyve made over the last 24 hours with their dividends theres always a time where you get lucky and are in the right place at the right time. But, you know, scott, conservative investors never speculate for income its a big trap. You never reach for that yield big trap sometimes, you see a yield like at kohls stores, they cant maintain it. You know whats happening to retail and its hard for me to also see, if weve already seen a contraction, 15 in s p 500 sort of earnings estimates, how those dividends only contract 10 , but names like p j, at a 2. 6 , j j, even pepsi cola, solid Balance Sheets, incomes covered youre going to make some money. You dont ever want to try to get rich on a dividend the governor of new york is making some comments, updating us on the numbers in new york state. Lets listen to Governor Cuomo no now. Total hospitalizations, a click down, still near 18,000, but good news. Thats a fact a fact its good news not my opinion you see flattening of the curve, all of these new expressions weve never used before. Plateau, flattening, rounding, net change in hospitalizations down thats good news threeday rolling average, because, remember, any one of these days of reporting, this is a new reporting system its imprecise i wouldnt bet the farm on any one days numbers. But a threeday average starts to be a little more accurate icu admissions is down thats good news intubations are down thats very good news. Just on a reallife level. When a person is intubated, theyre on a ventilator, 80 of the people will never come off the ventilators, or thereabouts. Thats good news a little reality check, you still have on a daytoday basis, about 2,000 people who are being diagnosed with covid so were out of the woods. No, were still in the woods the good news is, we showed that we can change the curve. The good news is, great news, in my opinion, we can control the spre spread that is great news can you imagine if we couldnt control the spread if we did all of this and the spread kept going up so we can control the spread but you still have about 15,000 people a day who are new diagnosis, coming into the Hospital System. So, its still a Serious Public Health issue lives lost yesterday, 752. Which is the painful news of our reality, day after day, and they are in our thoughts and prayers. You see 707 in hospitals, 35 in Nursing Homes, people are interested in that in those numbers and how those numbers are change but you see the terrible news has basically been flat over the past several days again. The number of deaths is quote unquote lagging indicator. Its almost disrespectful to put it in scientific ferms but these are people who were probably intubated they were on a ventilator, and then, again, period of time on a ventilator, normally has a bad outcome. The total losses, total number of deaths number, the cdc changed guidelines on how they want information reported. They want deaths and then another category of probable deaths, which is a new category thats done by the local department of health or the coroner. So were going to rationalize those new reporting requirements with local governments and get that information out as soon as we can were also, since we have a little bit of a period to take a breath, were going to contact Nursing Homes and facilities to find out if there were other people who passed from covid who were not necessarily in a hospital or in a nursing home. Because there is a sense that there may be additional people who have passed away, and they werent included in the count, because they werent in a hospital, they werent in a nursing home so well be going through that but basically, the Health Care Situation has stabilized the fears of overwhelming the Health Care System has not happened, thanks to the phenomenal work of our front line workers thanks to all of the additional capacity that the Hospital System created over 50 additional capacity in one month. Just think of that thanks to the work that our federal government did, army corps of engineers, providing the beds at javits and comfort. By the way, javits, which is 2,500bed capacity is the overflow valve, about 800 people have gone through javits so thank you very much and that have a Great Service that was done by the federal government in a very short period of time that is new York Governor Andrew Cuomo updating the situation in new york state, saying just a moment ago that the Health Care Situation in the state has, in his words, stabilized hospitalizations are down. Icu visits are down. He still, though, says we are in the woods, quote unquote a lot of people are still being diagnosed, he said, in the state, and he did have the grim reality that there were 752 deaths, just one day ago in the state of new york. So there still is a long way to go, but he did use words like flattening and plateau and rounding of that curve that we all look at every single day well take a quick break when we come back, our experts are ready to answer your questions next and you still have time to reach us. Well come back in two minutes weve got a bunch of questions of yours and well hit it next shouldnt you pay less when you use less data . Now you can. Because Xfinity Mobile gives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 200 off when you buy an eligible phone. Thats simple, easy, awesome. Go to xfinitymobile. Com today. All right. As promised, lets do some of your questions jim, coming to you first ernie in michigan, it is on market research. I like this question all of the thing that is we all look at and you look at making the Investment Decisions help the people at home figure out what they should look at please explain what is relevant to the investor in terms of numbers, earnings and other reports. Thanks, ernie the things we traditionally look at like earnings are very difficult to look at right now you dont know how to project the earnings Going Forward when we near an economic shutdown what we dont know when were coming out of. What to look a the is Balance Sheet. How much cash is available you look at companies that are debt when is that debt due . If a lot of it is not due for three, four years, may not be such a big problem but start to think about cash burn versus the cash on the Balance Sheet. So in times of stress like this, its balance street, Balance Sheet, Balance Sheet hope that helps. Appreciate it your take on charles schwab. Look. It is a high Quality Company but that doesnt mean its a stock i want to own. They like the banks have interest they generate interest revenue on the balances in the broke and accounts and margin debt forget about the writeoffs on those but not making money where the rates are. Id avoid the financials completely. Dr. J, coming to you from thomas in illinois carnival, is that a buy at this price . I dont believe so, scott i think the buy was a couple weeks ago but i did buy the bonds and i plan on holding those a long time, scott theyre yielding nearly 12 . Okay. Amy, from david in north carolina, a comment on a longterm growth of teledoc. We bought it last year. It was fortuitous timing we didnt know that telemedicine would go through the roof this year but we think the trends are still there. And, you know, 12 billion market cap with runway here. Michael, to you arvind in connecticut, which is is a longterm stock, j j or abbott yes, absolutely both of them pick either one. J j has a better dividend. Aaa Balance Sheet. Abbott, just both great companies. Maybe better management at abbott i buy both probably not buying today but a weakness. A bonus round, too. Getting so many questions and want do get to as many as we can. Jim, coming back to you from david asking about roku. Roku anyone . What do you do i told you at the beginning of the year i wasnt going to trade it on momentum but see if i could value it at this price it is still just overvalued and i saw the good news the other day but i would like to see it closer to six times sales before i fathom the value of it. We are way above that right now. Steve weiss from john in austin, what about micron . I love mike ron i added to it recently their numbers are good dram prices are moving higher. One to own for now an hold through the cycle. All right john from jerry in san jose, dr. J, with all of the uncertainty of corporate earnings, can investors use the implied move on the options chain or make no sense right now . No, it always makes sense, scott. Because theyre basically pricing in more volatile moves mean wider swings in the market so virtually everything we look at has wider swings projected either just one week out, scott, or three weeks, four books out witness you get further out on the curve they narrow up as you expect so hopefully that plays out that way, as well. Amy on gold quickly we like gold. We added to gold last year when countries are debasing the currencies you want to be in gold i think it gives you protection in a lot of different scenarios so its at recent highs and we think it goes higher. I got a take in on ibm. Wheres the panel see ibm postcovid with the new leader and director do you have a take on that stock . Yeah. It is more constructive now and certainly at the prices. Management is good solid valuation. The dividends i mean, it is coming back. Microsoft is not your fathers microsoft. Im sorry. Ibm. Freudian slip welta al ke quick break and come back with final thoughts. Our Retirement Plan with voya gives us confidence. Yeah, they help us with achievable steps along the way. So we can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Oooh, well. Im good at my condo. Oh. I love her condo. Nana throws the best parties. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Ever somethings gone mogotten into the office. M, i hear you. Feels like theres no barriers between departments now. Servicenow. The smarter way to workflow. Want to remind you, our coverage continues tonight with our special report markets in turmoil. Ill see you at 7 00 please join us then. 7 00 eastern time tonight. We have several calls on wall street today. Before we go, jim, i see raytheon reit stated as a buy at goldman sachs. Yeah. This is one i like frankly, i dont know enough of it but i like the diversification. It is not just aerospace, it is defense, as well within the aerospace it is not like i worry about the boeing getting 737max up they put engines on all sorts of plans. Civilian, defense, missiles from raytheon i like the portfolio here. Weiss, you were bragging about the pelotons you bought. We got it. You got like five in the house now. The stock was initiated buy at roth capital the target was 38. Yeah. It is up 25 from when i started bragging about it. To me this is a benefit of whats going on with coronavirus. It is a premium product, sure. But it is when you break don what the cost is, versus a gym membership, it is compelling so i love the stock here. Maybe ahead of itself. I dont know but its definitely going higher from where it is based upon the installed base continues to grow. I mean, im being facetious how many do you have it wasnt five. No. I have one in my house and my daughters each have one. I think the number you used was three. Three. Michael, leave us with a quick thought of what to look for the rest of the week for us. You know, i think if we get a little bit of a pullback, we can upgrade in quality so i think you can do some selling of your lower quality stuff when you get days like this and that increase the quality trade like mohammed suggested. Im all in. Good stuff. Good seeing everybody. Thanks for watching. Kelly picks it up now. Thank you, scott hi, everybody. We have a selloff across wall street today as investors digest bad Economic Data, weak earnings and sinking Oil Prices Look at the dow down 524 points right now. Thats a better than 2 drop the nasdaq relatively solid. Now when we say bad Economic Data we mean really bad. The Empire State Manufacturing index for april plummeted to a minus 78. 2 reading thats a clear record low. New shipments and orders declined at