Transcripts For CNBC Closing Bell 20240713

Lots of guests coming up mel Mellody Hobson will join us. Well ask if todays the start of a downturn or a buying opportunity. The ceo of icelandbased Decode Genetics will join us. What the company has learned about how the virus spreads. Its an interesting study. Lets focus in on the big stories we are watching in this final hour of trade. Bob pisani tracking todays selloff Courtney Reagan with plunging retail Sales Numbers and wilford. Bob, a little recovery weve seen lets take a look at the s p and call this one cuomo versus the horrible Economic Data because the markets once again, cuomo moves markets. 12 30, started talking about lower hospitalization rates, the market lifted at that time continuing to lift but cant compete against those horrible Economic Data sara was talking about. The energy, the banks, the small caps, the industri industrials, Economic News, they suffer the Energy Stocks getting pounded, even down double digits, some recovering off the lows like apache and hess. We had terrible news about the reits. These rallied briefly into the close on friday and have been down the past cup dales in a row, down big again today. The homeowners, you see to the downside in the midsingle digits the stayathome stocks are doing great here netflix a new high, amazon a new high, walmart a new high, even eli lilly. Coronavirus having a major impact on Retail Sales New data showing a drop in march. Courtney reagan has the latest the data confirm kwhad we all thought. March was a terrible month for retail, the worst month ever, despite even all of the buying on essentials like food and health care. For the month of march from february, retail sales fell 8. 7 they actually were down 6. 2 even from last march if you want to look at the year over Year Comparison excluding autos and gasoline, though, that core retail sales number, still down 6 from the month of february. Now, effectively all nonessential physical Retail Locations as you know were closed for much of the month if not maybe more generous the second half of the month so thats a lot, a lot of effective retail sales that were just closed to the public in general. Lets drill down on some of the sectors. Clothing and accessory sales down almost 51 , Department Stores down 20 , restaurants down more than 26 you cant go out, cant sit in a restaurant or sit close to anyone for much of the month of march. Grocery store sales, noethose we up 27 in march from february as consumers stocked up their kitchens, health and personal stores, drugstore group, up over 4 i found this interesting nonstore retail, mainly online, it was up but just 3. 1 in march from february. So youre not seeing a big shift online, at least in many categories when youre looking at this in aggregate Department Stores, specialty clothing, those are some of the stocks that got particularly hard hit in todays session as a result of some of this reality check from the retail Sales Numbers. Look at nordstrom down 9 , macys off 7 , dillards down more than that were just getting news from jcpenney as a retailer that has been in trouble for some time. They are not going to make a 12 million Interest Payment due today. They say as a part of this agreement, there is a 30day grace period and they are electing to tap into the grace period as they look into other Strategic Alternatives well see what that means, but we know that jcpenney is a name last hour we were talking about as one that might be ready to file for bankruptcy. Back to you guys im wondering who else is in trouble and how many weeks or months the Retail Industry can survive and deal with 50 sales declines in a matter of a few weeks. Thats pretty brutal weve seen furloughs at these companies. What are the cash positions like, and are they getting any help with loans . Thats such a great point, sara well drill into this a little more tomorrow, but there are a number of retailers that are not far from jcpenneys financial conditions they were already strained going into this covid crisis so they may have been in trouble already and may be the straw breaking their back, names like neimanmarcus and j. Jill, party city, rite aid, 99 cent stores, a number of these companies that were already in financial straits and their debt has been rated so low theyre not eligible for any of these programs and then you brought up timing i think thats what every retailer is trying to figure out. How long can we afford to stay closed truly until some big, Big Decisions will have to be made i think that date is going to be different for every retailer the Financial Sector taking a big hit today as more earnings reports reveal the impact of the pandemic on the banks. Wilford, what are the big takeaways on the big banks today . The key focus throughout the earnings season has been what portion of their loans could fail due to the worsening Economic Outlook here are the numbers not comparable between them, but citi has the biggest increase in reserves relative to total loans floefed by jpmorgan, wells fa o fargo. The key features the credit cards for the consumer and sectors like energy within commercial Goldman Sachss percentage around 2. 4 . Its a less relevant metric for them importantly today, bank of americas cfo struck a slightly more optimistic tone in terms of whether or not provisions will get worse from here compared to jpmorgans cfo yesterday could be meaningfully higher in aggregate in the next several quarters relative to what we took in the First Quarter. In terms of the question about whats the likely reserve bill in the future if we thought we were going to have to add more reserve build in the future, we would have put it into this quarter Goldman Sachs also struck a slightly more constructive tone on their call today, and its the best of todays earnings reporters. Bank of america the worst, but that was because of poor Net Interest Income guidance for the Second Quarter if we look at all of them year to date, the investment banks, Goldman Sachs and Morgan Stanley, who report tomorrow, are the outperformers, which makes sense. They have less lending that could therefore potentially go bad. Within the four commercial banks still quite a lot of share Price Performance differentiation, and that in large part comes back to what we touched on at the top. Its investors gauge of the strength of the asset base, of their their loan book and their Balance Sheet. The banks having another significant underperformance day relative to the rest of the market which is why goldman stands out a lot, wilfred i think its the only bank stock thats higher right now. I read some Research Suggesting that goldmans been dinged for so many quarters because of its outside exposure to trading and capital markets, which right now is actually proving an edge. Yeah. Significant exposure to that and within their trading they have more exposure to fixed income to equities if you had to pick between the two, the fixed incomes Even Stronger than equity trading interestingly for goldman, across their four business lines, three saw 20 Revenue Growth year over year. Clearly one segment didnt but the bottom line for them really was that they are less of a lender and more of an investment bank, a trader, so their business mix was better than perhaps some of the big lenders. And they were fairly cheap as well at the start of the year. So relative to where they could bounce that they had a bit of a room to improve. Morgan stanley come tomorrow and again, theyve got more exposure to things like trading and Wealth Management than pure lending, so we have to wait and see if they can buck the trend too. You have to go back to the main point, sara. 1 of gains today for Goldman Sachs, significant outperformance versus the rest of the sector, but 1 isnt much relative to the declines year to date absolutely. After the break, iceland of tbd Decode Genetics looking at the spread of coronavirus in that countrys population well ask the ceo what the rest of the world can learn from this, next these days staying connected is more important than ever. So were working 24 7 to maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. Welcome back weve got about 47 minutes left of the session off 400 points on the dow, down 716, 2 lower on the s p 500 and have a look at yields in europe spiking today. Those markets coming under increasing pressure as investors worry about the enormous debt load if the other euro peen zone members are taken out without a clear burdensharing Program Initial optimism last week and issues coming out since then the italian the one to focus on. Its been between 0. 85 and 3 , but just since the start of this month its up from 1. 5 . It gives a gauge of the risk that people are seeing on some of those periphery countries like italy i dont know why they dont just do euy corona bonds i think that seems to be the play thats been the solution on table for the last 12 years but didnt get to it in 2010 to 2012 you know the hurdles are significant when it comes to the politics all right lets focus on iceland thats an interesting example. Decode genetics has been able to test more than 10 of its population for coronavirus in a new study, decode found that roughly 0. 8 of those tested showed strains of the virus. Whats significant about it is about half of those who tested positive said they were asymptomatic meg tirrell joins us with kari stefansson, ceo of Decode Genetics meg, take it away. Sara, thank you so much doctor, its great to see you again. Thanks for joining us. You guys wrote in the new england journal of medicine in a study just published that the 13 positive of the people in the highrisk group who you screened but also the less than 1 in the general population screening provides grist for both assurance and alarm tell us about those findings what is different about icelands response to the epidemic from most other countries, at least in europe, is that we started screening very early the Health Care System had actually screened for a whole month before we found the first patient. And also we have screened the general population, not just the ones with signs and symptoms and those in high risk but also the general population over the total period since the 13th of march until today, about 0. 8 of the population has been infected but that has been on the decline. So today it is probably about 0. 4 of the population that is impacted and the approach in iceland, too, in addition to accepting this rewardbased screening that we did, is to have an extraordinary tracking contacts infected, putting the infected in isolation and the contacts of the infected in quarantine by doing this, we seem to have brought this epidemic essentially under control. What are the takeaways that countries the size of the United States, for example, can take from the icelandic experience . Is what you have accomplished even possible in a country our size it ought to be even easier in a country of your size with your resources. This incredible amount of talent you have, the incredible resources you have, if you would bring this all to bear you would easily be able to do the same thing as we. You have all of these talents, all of this equipment in your universities that could simply be drafted to apply to this epidemic you could have the universities do the testing you could have the universities do the analysis of the data and help with how to deal with it. So, yes, 1,000 times the population of iceland is 1,000 times more the population of the United States, but you probably have 5,000 times more resources than we do its all a question of the will, the desire, the determination to do this properly, and my guess is that to do that there needs to be some sort of central control. What do you make of the finding in your study that about 43 of those of who tested of pozny the population screening didnt initially show symptoms what does that tell you about the potential asymptomatic spread of this disease it is difficult to extract that out to the data we published today because even though 43 of these people were asymptomatic when we took the samples and actually that number has been going down, it is very likely that many of them developed signs and symptoms later. But on the previous point i want to emphasize that the methods that we have used in iceland to test widely, to seek from everyone infected to bring about this kind of a control, these are all methods that we learned from the americans you taught us how to do this, but you havent been doing it yourself that is pretty sad that is pretty sad. Dr. Kari stefansson, on this question of reopening, i know that you guys are also in iceland working on reopening schools and salons and restaurants, if only 0. 6 of the population has tested positive, how do the other 90 feel safe going out into public and back to normal life this is the big thing we have just recently started to do antibody screening for screening for antibodies against the virus. This will give us the truex poe sure what we did before was to use a pcr method to look for the presence of the virus. Your ability to find the virus depends on doing the testing at the right time if there is, indeed, a large part of the population that remains asymptomatic, the only way to determine the true spread of the virus in the population is to look at the immune response against the virus, to look for the antibody that the body has made to fight off the virus. We started that a couple days ago. And indeed in a week or two we will have what i believe is going to be the true distribution of the virus in the population kari, we always try and ases why some countries have had better performances with this virus than others. We did it with germany earlier this week. I wonder how important you think that population density has been as it relates to the situation in iceland i think im right in saying that your population per square mile is one of the low invest the world. Its the lowest in europe. Has that had a big impact on how the virus has spread in iceland . No. I think what draws the line of distinction between the countries that have done well and the countries that have done less well is how early people responded. You know, the entire world knew that there was an epidemic mounting in china in january and basically, the authorities in iceland prepared for it they started to test before the virus had rrived i think that theres nothing else that matters here population density in the capital of iceland has about half of the population, 60 of the population, is fairly high the rest of the island is fairly large, so the population density of the whole country is rather small. I think our challenge is similar to any small town in america so i dont think this population its the vigilance with which people responded to the news about the epidemic in china. Yeah. I mean, i was sort of wonder hough you explain the discrepancy between, you know, the 0. 6 of the population you found that tested positive we dont have any real mass testing, i guess, in this country, but there are small studies like in new york city that showed 13 of expect about the mothers coming into the hospital tested positive, many of which were asymptomatic so why are those numbers so different . I honestly cannot you know, i think that comparing these numbers is like comparing apples and oranges we did a study of two population distributions. These were just a spot test in a city that was being ravaged by the infection. So i think it is very difficult to compare these two approaches. Kari stefansson, thank you so much for joining us. We appreciate it our thanks to meg tirrell as always also. On a programming note, dont miss healthy returns, our interactive Virtual Event on may 12th cnbc will be speaking with Top Health Care leaders at the center of the fight against coronavirus. You dont want to miss that one. Timely discussion for sure the dow is down about 375 points weve got about 38 minutes left till the close dont miss our rare interview with Mellody Hobson from Ariel Investments. Ariel has been pretty bullish on this market as sooas we n saw those lows in march. Well be right back. 35 minutes left of trailing. Shares of buybacks falling today as the company says it will furlough a number of its workers. Frank holland has the details. Fedex shares dropping 4 after the announcement its about 10 of overall business the company says its a, quote, small number of workers in a 45,000employee unit and they will continue to get their Health Benefits for four months and qualify for unemployment during earnings on march 17th, fed ex said it expected freight to be impacted by the coronavirus crisis, but the ceo then said layoffs would likely not be necessary since then theyve slashed pay and spent on a drone facility. Freight shipments dropped 9 year over year xpo trading below the Broader Market on those grave concerns frank, shanks for ththanks f. We touched session highs only a few minutes ago. Were back down 421. The low of the session was 716 still well off that. Still ahead, sales at Motor Vehicle parts dealers fell 25 in march well speak with the ceo of hyundai north america about how his company is managing the slowdown heres a check on bonds. Yields taking a significant leg lower today, something to consider, by the way, when you look at the bank stocks trading down its not just the earnings its yields as well. 0. 63 currently on the tenyear. Well be back in a couple minutes. 31 minutes left in the session. All 11 sectors in the red, energy the worst performer hovering around that 20 a barrel mark for wti. Materials, real estate, financials down 4 or more health care the best, but its also in the red. The dow is down about 2 itself. The russell lags the major indices, down 3 a dire picture of Economic Activity as retail sales and Economic Activity plummets corporate earnings waking on ventilator sentiment with banks saying theyre bracing for large losses another ugly day for the Energy Market wti around 20 a barrel. Time for a coronavirus news update with seema mody hi, seema. Lets start with politics the wall street journal reports Business Leaders told President Trump during a phone call today that the u. S. Needs to dramatically increase Virus Testing before people will feel confident enough to return to work, eat in restaurants or shop in stores. Andrew cuomo says businesses will reopen gradually as the virus creates a new normal for now, hes ordering residents to wear face coverings in public where social distancing is not possible wear the mask whats the big deal . It can be a mask, a cloth, a bandanna, make it colorful, have a design, make it advertising. Whats the big deal . Risk reward is life. Protesters and cars converged on the streets outside michigans state capital to show their opposition to governor Gretchen Whitmers stayathome order. Some picketers gathered outside the building they say the rules violate their rights and they wanted the governor to look at safe ways to open more businesses now for more coronavirus coverage, head to cnbc. Com sara and wilf. Want to show you whats happening with the markets about 29 minutes left of trading. As wilf has been noting, down 700 at one point on the dow, off those lows, down 439 points. S p is down 2 , which basically, wilfred, leaves us flat for the week nasdaq is up 3 . If you look at what is being blamed for the selloff today, a record decline in u. S. Retail sales, a record low on new yorks manufacturing number, the worst, you know, confidence data and Industrial Production data in years the soft sentiment off Bank Earnings and oil plunging below critical levels, 18year lows. Its a wonder the market isnt down even further. You could call this resilient. All of those factors, sara, you pointed to, they allude to the key talking point i put it of this week, which is even if we are seeing encouraging signs in terms of the data from the virus itself, some flattening of the allimportant curves, the question and debate now is when the economy can open up and can open up effectively. To that point, on the week to day data, you are seeing differentiation in terms of the performance so energy, materials, banks, some of the worst performing sectors for the week as a whole down close to 10 where others like tech, like consumer staples, Like Health Care are up week to date again its that sort of stayathome, work from home basket versus the ones that are more linked cyclicly to needing the whole economy to be doing well or not. And you know mike santoli if he were here would say thats healthier than the sell everything mentality we were in in the throes of this crisis coming up, josh brown joins us with his lastchance trade ahead of the close then after the bell, well discuss the bailout of afrls and which names are best positioned to ride out this shutdown. 27 minutes let to trading. Dont get mad. Get e trade, dawg. U. S. Airlines working with the Treasury Department to receive an aid pack. The ceo weighed in on the terms earlier. They were conditions we were happy to accept. If you find yourself in need of government assistance, its fair to say until youve paid off the loans, for example, if you choose to take loans, that you dont have stock buybacks, you dont do dividends, that the money doesnt flow to your executives lets bring in an analyst from barclays. Very good afternoon to you thanks for joining us. Overall, when you weigh up this package, how long it took, the terms of it, do you think the airlines have been treated fairly, generously, harshly by the government wilf, thanks for having us on the intent here, i believe, of congress, of this administration is to keep people employed and keep paychecks rolling to the extent that this protects Airline Compensation roughly at levels that we saw last year during q2 and q3, obviously thats the objective for the carriers, deltas disclosed it we think its similar for american and united. Theyre burning 60 million a day in cash flow any assistance they can get to keep people employed is very fair only 30 needs to be repaid. Its a lowcost loan and the warrants that are being issued here, which is roughly 3 of the total value of the program, only becomes diluted if you assume stock prices double or trip from here. I dont think shareholders will be very upset about that if you look at some of these share prices, brandon, anywhere down from 40 to 60 over the last three months, with this clarity around the relief, are these stocks ininvestable or is there too much uncertainty for the outlook for the reopening of the economy . The problem becomes, and i think doug park esche was alluding to this on an earlier show, we dont know duration of when people are going to be comfortable, not even being allowed to go back or when governments recommend travel is safe again, but the whole psychology of the traveling public could be changed for quite some time. Then we need to think about, you know, when do we get the things we travel for like conventions or taking family to disney world. We need to get those things back open before you can start to believe travel gets back to roughly 10 , 20 below the levels of 2019 if we can underwrite that scenario, when i agree, you know, american, you know, has a lot of debt here, but delta, united, theyve managed their business with about 10 billion to 15 billion less than going into this than american. You can see a lot of equity appreciation there if anyone has the liquidity to get through this from an equity perspective, it will be southwest. Southwest has gone down the least. So i think, you know, the one were concerned a little bit about how fast things recover would be american. If the terms are relatively generous, if the dilution isnt too severe, why didnt all the Airlines Just take as much as they could possibly get their hands on, particularly given your point, we dont know when demand will come back in any meaningful way well, i think we have seen all the carriers take it its our understanding that maybe Spirit Airlines wasnt included initially i think theyre also working on this keep in mind, even if youre gary kelly of southwest airlines, the ceo, hes looking at a situation where even though they didnt have that much debt going into this, theyre burning through cash we estimate probably 30 million, 35 million a day, even their liquidity profile runs out by the end of the year if nothing changes. I think anyone in this industry, you know, is going to say, look, were going to take the available cash and liquidity, especially if its low cost, when we can. I think what were going to see also is a lot of the carriers not only take these cash grants but also apply nor the loan program. Thats about 25 billion in value. I think if we get that doled out to the industry on similar terms well see a little bit of equity dilution more importantly, this should give us liquidity to get us into 2021 for almost all these carriers the question becomes whats the right level of travel. Brandon, thank you. Thank you thanks for joining us up next, uninterrupted coverage of the final minutes of trade inside the market zone. L wnoue down 2 , so four sectors aldo dblthat well be right back. But right now, the world needs all the good that we can do. To everyone working to keep america strong, thank you. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. Coverage of the final minutes of you can do it, you can finish. [spokesman] finish your degree at snhu. Edu coverage of the final minutes of d and overcoming challenges. Usaa has been standing with them for nearly a hundred years. And well be here to serve you for a hundred more. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Welcome back weve got 16 1 2 minutes left of the trading day. Joining us for his last chance trade, ceo josh brown. How you doing, josh . Good to see you. What are you going for, lastchance trade . Hey, guys its great to see you. Im going to talk about a name ive talked about on here before, which is slack i bought the stock high, came down, added to it much lower and it seems to be rebounding. A couple things. Slack bounced off its 100day moving average pretty perfectly, about 23 1 2 or so thats exactly where you want to see the buyers come in last week and they did, in fact, come in i know a lot of people hate patterns but say you like them you have a pretty well established inverse head and shoulders, 30 would be the neckline i think if the stock can clear 30 it looks good for much, much higher its about a an 11 billion market cap its expensive it always has been this is part of that basket you were discussing earlier. The stocks that make sense to be going up right now, the stocks that benefit from the dislocation that everyone feels. So slack went from 10 million to 12. 5 million daily users, converted about 60 to paid. A lot of new users and paid new users coming down the pike a really good story. They have plenty of cash, right, josh . They recently did their ipo, their direct listing, and on top of that managed to get a bond issuance away at a pretty amazingly cheap price. You know, thats what separates slack from some of the stuff that vision fund back, for example. People like to lump in all the unicorns together. The reality is that slack did a direct listing because it didnt need money they had just raised 800 million. The Balance Sheet is not the issue here i dont think anyone thinks it is whats kept the stock under pressure is quote unquote competition from microsofts teams, but microsoft bundles teams with office 365, and the uptake is pretty weak. Theyre claiming a number of teams users, but thenwhen you look at that number in the context of office 365 users, its Something Like 20 , which is not great when i mentioned the Conversion Rate from premium to paid, thats an important number, especially the companies that are paying them more than a million dollars. All of those numbers are expanding, margins are expanding too. This is what Growth Investors call a compounder. This type of stock its a classic compounder. Balance sheet is fine. The real story is how quickly can they get to real profitability and how quickly can they dispel that talk about microsoft. Josh brown, talking up slack, moving 2 higher here, up 8 now. Hang on. We want to go straight into the closing bell market zone commercialfree coverage of all the action going into the close. Joining us is mr. Josh brown, interactive broker, steve sosznick joins the conversation as well. Stocks are lower today as investors digest poor Economic Data including historic declines in retail sales and home builder sentiment. Earlier today, i spoke with imf managing director Kristalina Georgieva about the Global Economic downturn. She said half the world has come to the imf looking for a bailout. Listen weve had 1 trillion lending capacity just as a reminder, prior to the Global Financial crisis it was four times less. It was 250 billion. And that for dropping our capacity really makes a difference today we were able to immediately deploy emergency financing, actually double access for our members, so 102 countries knocking on the door of the imf for lifelines can obtain rapidly financing. Josh, 102 countries asking the imf for help theyre releasing it its a remind theyre this is not just a problem here in this country with the 2 trillion relief package and potentially more on the way, that were all in this together and that the Global Economy is set to contract 3 this year, which is three times the amount that it did during the Great Recession how do you think about the global picture i think thats a really important point you make, sara, and im glad you made it the idea were all in this together almost politically, whether you want to be or not, what happens in one part of the world will find its way here if left unchecked, which is why its so important for there to be global organizations like the imf. Not that we should take our marching orders from them, but we need people to monitor the Global Economy so that small problems can be addressed before they metastasize ill also point out, go back through the history of crises that weve had just in my own lifetime, there was always one shoe drops and another shoe to drop, and then just as youre feeling comfortable, that third shoe drops. A great example of that is the asian currency crisis that boomeranged around the world, found itself ultimately back to our shores in the form of longterm capital blowing up longterm capital initial bly had nothing to do with the thy bot, but thats the way markets work there are reverberations and aftershocks and ultimately wall street had to bail out a hedge fund or we would have had a disastrous situation in the late summer of 98. So thats why this is important. I think its a really poignant point that you made. To that point, steve, on almost any time frame, whether youre talking about this week, so far this month, or from march 23rd, since markets have started bouncing, the u. S. Markets and the nasdaq in particular are well ahead of european indices and various other emerging Market Indices does that concern you that for whatever reason it is the u. S. Markets have run up too quickly . Yes, it does. I mean, u. S. Investors for better or worse have been very well trained not to fight the fed and to respond well to liquidity. Some could say were addicted to it when you look at the type of stocks that are leading the advance, its the stuff that people had been winning with before and some for good reason, some for more speculative reasons. But josh mentioned three shoes to drop. This could be a centipede. There could be a lot of shoes to drop because this affects so many corners of the globe in so many ways. I fear that some of the u. S. Investors a little too sanguine about some of the biggest cap names leading the advance. Julia boorstin has another story for us hi, julia. Wilf, netflix shares are about 3. 5 higher today, up about 32 for the year at that alltime high. Today the streamers market cap surpassed that of disneys netflix bolstered today by pivotal raising its price target on the stock to a street high of 490 projecting it will add nearly 8. 5 million subscribers in the First Quarter of this year when it reports on tuesday, saying covid is cementing netflixs direct to consumer dominance the stayathome stream play is benefiting roku. Those shares are up over 5 today. Back to you. Thanks so much for that where does this one stand, josh, in terms of your basket of things that can benefit despite the broader macro headwinds . Yeah. This was a really obvious one. I foolishly missed an opportunity to buy this in early march. I feel like i got a few of these right. Ive stuck with teledoc and zoom and ive been in those since january. I just havent been in netflix i should have been smarter, because this is really this and video games, all the surveys of how people are spending their time, thats where all the bandwidth is being used. So i guess if you missed it, i dont love it here, but people always say that with a stock thats gone up and up and up maybe because i missed it, people should ignore my opinion on it now. I was wrong to miomit it. Beyond the netflix surng, if you look at the 52week high list, act vision blizzard, amazon, walmart, eli lilly, s senteen, all names and companies that are faring better in this crisis does that make sense to you . Are they still a buy have we missed the opportunity it makes a ton of sense to me these are the type of companies that should be benefiting now. Were all ordering packages from amazon and watching stuff on netflix and go goiing to video games. Have we run too far, buyers remorse, but i think were starting to see the market be a bit discriminating but are they getting too enthusiastic where do we go from here this could help netflix with cash because its hard to produce things right now in any event, i do get concerned we are getting too enthusiastic about an ever Smaller Group of stocks josh, i want to put a different thought out there on, yes, some of these special situations can benefit at this time, but week to date, the bank stocks, the kbw index, is down 13 as we stand or 12 as we stand right now. The nasdaq is up 3 over the same threedaytrading period. The banks are down because forecasts have been pretty dire for the cyclicly linked companies to the economy that well see companies go bust. You have a 15 differential where the rest of the market can rally, even though these big banks are coming out to say theyre concerned about the economy. Does that make sense to you . No, it doesnt make any sense at all i do think that there are mechanical forces at play that drive certain stocks versus others, and not every person is smashing the buy button or the sell button necessarily has an Economic Outlook thats an important component. I also think that a lot of money is run based on momentum and where that appears, more momentum will appear thats the definition of the term i think you have a lot of people chasing an everdwindling list of stocks. I think thats the right point but it doesnt necessarily are to reverse right away. One of the most disastrous trades you could have put on is value minus growth it never worked. Or it worked for two days and killed you a week later. We can spot these trends, wilf, to your point and take note of the wide dispersion, and then we can just accept the fact that that dispersion can go on for a very, very long time to the banks, i mentioned on this show before, im concerned with what the action in mortgage reits and Community Banks and regional banks whats happening there, they dont get this benefit of, oh, look, its the Cloud Economy they have to live in the real economy in a way that the Cloud Computing stocks dont and thats maybe why the sellers are quicker on the trigger lets move on to cruises, cruise industry among the many sectors getting crushed amid the coronavirus uncertainty. Carnival corporation Ceo Arnold Donald sitting down exclusively with us here yesterday, gave us his outlook for the company. We have lots of people booking now for 21, some for 20 still well have to see, you know, exactly how this evolves we definitely think we can get through, you know, the end of the year with that, with no revenues coming in were not saying thats going to happen, but we want to be prepared for the worst case. I got to say, that surprised me theyre offering either full cash refunds or credit and more incentives for future bookings to hear Arnold Donald say that 2021 bookings are strong, even with all of the negative headlines and the focus on the cruise lines, i mean, would you be a buyer of the stock . Sorry i called you scott before. I knew a Scott Sosnick one time. It happens all the time basically, i dont know what motivates the people to be booking a cruise right now to be fair, ive taken one cruise in my life, didnt particularly love it, not at carnival, but i guess its a much more resilient industry than ive ever given them credit for. There are people who love the cruises and im looking forward to resuming certain activities cruising isnt one of them but obviously theres a lot of people who are if im going to take it at face value, im not going to call him a liar so i guess hes telling the positive story and there must be something positive to it i certainly dont see it, but i have to take him at his word i recommend anyone going to cnbc. Com to watch it whats your take how quickly demand can bounce bounce back . I dont believe it. Throw the airlines in yeah. He was, like, were seeing strong bookings. What does that mean . Strong compared to what . Like two weeks ago so like you had no bookings and now you have two i dont believe it i dont know what the numbers are. Im not motivated to look for the numbers because i think that industry is permanently altered. So i dont believe it at all if youre looking for opportunity amid the rubble, look for things that people really cant live without for very long without doing. I think like going to the dentist is on that list and haircuts and a lot of things that you cant do right now but you definitely will. Will you definitely get back on a cruise ship in the next five years . I dont think so i dont buy that at all. Its a miracle that that stock is where it is we got a lot of feedback permanent, sara from people who like cruises and they feel that theyre going to be fixed in terms of the measures they put in place, to sanitize and provide health care. Im not arguing one way or another. Im just saying there might be a population out there that will pick up cruising again yes but youre talking about companies that need to grow even in good times to sustain their cost structure and their fleets. Im not saying no one will ever take a cruise again. Im saying you have seen the peak size of that industry lit never be bigger than what it was in the last few years. And the next few years it will probably be a shadow of itself is that the type of investment that most people want to make, Equity Investment . Probably not most people are looking for Growth Opportunities thats almost like a salvage opportunity. That takes a very different type of ventilatinvestor mindset. Home building shares a historic decline in Consumer Confidence dana has that story. It was a pretty stunning number, building sentiment in Single Family housing plunged from 42 points to 30 on the index. Anything above 50 is positive. This was the first negative read in six years and the largest onemonth drop in the history of the survey dating back to 1985 now, that sent shares of big names like d. R. Hofrton, lennar, plunging more, despite upgrades of the builders. Some analysts say Home Building will lead the economy out of this crisis giving the high demand and low supply, but not until the back half of this year we have got 35 seconds left of the session as we stand with our 440 points down on the dow, the low down 700 or so weve got the s p down more than 2 , nas a detective down 1. 5 . Oil has improved a little bit. Its higher approaching the close but still around 20 bucks a barrel for wti all of the sectors are led lower by energy, materials, real estate financials, all down more than 4 . All 11 sectors at the close, russell is down 4. 3 , nasdaq only 1. 5 , s p 500 down 2. 2 . Welcome back, everyone. If you are just joining us, im sara eisen here with wilfred frost. Look how we finished up the day on wall street we did see stocks pull back but not as ugly as it looked earlier in the session theres the dow closing down 442 points it was down more than 700 at the lows loss of less than 2 s p 500 losing 2 on the day, but a real divergence in terms of the sectors for instance, health care finishing down only half a percent, but energy, materials, financials all got hit harder than 4 . Real estate also hit pretty hard, industrials just behind that the nasdaq down 1. 4 , technology has been an outperformer of late the nasdaq actually is the only one of the major averages that is higher on the week. Its up 3 everybody else is down or flat the russell 2000 index of small caps, hit the hardest, a lot of the banking closure in that. Its been an underperformer pretty much all year coming up this hour well ask Ariel Investments coceo Mellody Hobson about when she thinks the economy could begin to recover from the coronavirus and how to invest around that joining us to talk about the market today, josh brown is still here, Steve Sosnick is here ann miletti joins us from Wells Fargo Asset Management ann, what are you telling your clients to do now that weve seen a very strong bounce in the market but still plenty of uncertainty as to whether the economic and earnings picture goes for this market thanks for having me on youre right, it is a very uncertain picture ahead of us. I think finding a bottom is a process, not a price thats what we would tell our investors too. Its to stay focused on their longterm objectives and stay focused on their allocations and not to diverge too much from that, not to try to trade around too much from that our active managers are doing the same were seeing the Strongest Companies to come out of this. Steve, we mentioned earlier some of the key fed programs, the key Government Programs that have been helping markets. Do you think, though, that weve run out of steam based on just those that we now need to see some more fundamental good news in terms of Economic Data which obviously this morning was pretty dire . Well, i think that seems to be the case. As far as im concerned, i stated in a piece earlier this week that the fed went to 11 a lot of people didnt think they had it in them to go as far as they did. Perhaps the only shoe left to drop is intervening in the equity markets i dont know that they have the capacity to do so. But ultimately, its up to the companies to deliver as ann just mentioned, a lot of people looking at the type of stuff that will act well in this type of environment. But i fear thats getting to be a crowded trade. So ultimately companies have to deliver. Theres got to be cash flow. Theres got to be earnings and i dont know that the fed has it in them to bring that to the table for a lot of people. Josh, how much of this move do you see as being fed driven im going to say that the fed went to 11 because they are not trying to stop a recession thr v they already know a recession is a foregone conclusion i think what the fed did is to work directly with the treasury and literally try to head off social unrest. That is where this could have been headed if they hadnt acted as quickly and decisively as they did im not like a fed fan i dont wave the pompoms i recognize there are people who have legitimate complaints about the fed. In this particular case, i think they ha had to do what they had to do. How much of the stock market rally can you attribute to that . Thats what im getting at. Im not sure i can quantify it i have to tell you, we would be in a very different place if they were still negotiating what to do or giving speeches where one person said Something Different than the other the fed acted as one unit. The market liked it. 50 , 60 of the move, i couldnt tell you one something the cfo of Goldman Sachs said to me earlier today was that some of those actions meant that q1 was about technicals, saw a huge gapping of various markets in terms of bid and asks and q2 will be more about fundamentals yet earlier we were talking about the level of momentum in certain stocks, certain sectors. Do you think that momentum needs to break down and actually this should be now a fundamentalsdriven stock pickers market . I like that idea. I dont think the fundamentals are good but i think bleelt will be important Peter Boockvar has been talking about that on our air. I think thats the right take. People want to know mostly from companies not answers to questions they dont have like when will we get back to normal, a total waste of time to ask that on a conference call. The ceo doesnt know what they do know is what is your revolver look like . What does your Credit Facility look like . Is it fully committed . Whats your cash position . What have you done to reduce cash like that is what people want to hear on this seasons Conference Calls so, yes, i suppose fundamentals are more important at this point than necessarily price action. Lets get back to bob pisani for look what happened sorry, sara i was going to say look what happened, and ann, ill ask you this, today, Governor Cuomo talked thats what investors are fay v paying attention to. It still seems like the curve flattening, the health numbers, the measures that new york and other cities and states are putting in place when it comes to widespread testing and developments on the vaccine front and on treatment, whether its antivirals or antibodies. Thats the kind of data. It feels like the market is watching that right now less so than the earnings and the economics, ann does that change do you agree with that i do agree with that, sara. I think but it relates back to what josh was talking about its because the fundamentals at the end of the day do matter and investors care about when do we get back to normalization in terms of earnings and cash flow. But thats what the focus is and when you see when can we get the economy restarted and how do we do that, thats when you have a line of sight as to when normalization starts to happen and i do think this is a unique opportunity for active managers, stock selections who dont have to own every name and index. So these are the times where we can go get on those fundamentals lets get to bob pisani now for a breakdown of the biggest, most important movers of the day. Hey, bob wilf, a seesaw day. We lifted in the middle of the day, but it couldnt overcome the really horrible Economic News on Industrial Production and retail sales we saw energy builders, banks, autos, Credit Card Companies and the retailers, jcpenney didnt help acknowledging theyre looking at bankruptcy possibilities. That weighed on a lot of the weaker retailers cheeic chicos down big, nordstrom, all of them. Energy had a tough day 20 oil. Were coalescing around there, and obviously thats not enough even with the product cuts announced. Halliburton has a big dividend, almost 10 , and that is definitely a little bit under question right now energy had a rough day the Credit Card Companies were weaker this week, lower volumes. So many people at home, a big issue. These am ex, mastercard on the weaker side. The stayathome stocks as i call them had a great day. Netflix at a new high, amazon at a new high as well even walmart, only stock in the Dow Jones Industrial average eking out a new high, walmart there. There you go just barely into a new high territory. Back to you. Bob pisani, thank you very much for that. Googles ceo, former google ceo eric schmitt speaking at the Economic Club of new york yesterday about the role big tech is playing during the coronavirus pandemic think about what your life would be like in america without amazon, for example. The benefit of these corporations, which we love to malign, right, in terms of the ability to communicate, the ability to deal with health and the ability to get information is profound. I hope people will remember that when this thing is over. We wouldnt be here today, for example. Thats right. So lets be a little grateful these Companies Got the capital, did the investment, built the tools that were using you and have really helped us out. Imagine having the same reality of this pandemic without those tools. He absolutely has a point, not at least being able to do these tv shows, sara, remote from various places and some of the barpgs mentioned today, 90 plus of their workforce working from home. That said, typically, these companies are maligned for a reason, just as much as they are often celebrated for many good reasons on this channel. I dont think it changes that fact, that if and when they do something wrong, they deserve still to be maligned of course in terms of the celebration these companies receive, sara, the bottom line for people like eric schmidt, theyve made an awful lot of money and deserve to be held accountable when certain things go wrong absolutely. We should applaud the fact theyre using that i shall resources and knowhow to help fight this pandemic with the rest of us like Contact Tracing and what other solutions well have im wondering i guess from an an investigator, ill ask you, whether the investment thesis changes around these companies where, for the last, what, few years, theres been so much risk of regulation and privacy concerns, almost like the pharmaceuticals where now we need these companies to help get us out of this it doesnt seem like theres going to be much political appetite in an Election Year during a Health Crisis and a recession to go after these kind of companies i guess theyre too big to malign right now, though, there is a certain amount of book talking by eric schmidt. The thesis behind amazon for years was they can sell off the this stuff, not make any money, but the reason you would want to invest one day theyll basically wipe out all the other retailers who cant afford to compete and have the field to themselves guess what thats the scenario right now. So is it a caseover careful what you wish for i dont know so you do have right now markets really like playing the winners, which is why mdx is outperforming spx and why the nasdaq composite is near an alltime high. People are riding these winners. Right now, youve taken Elizabeth Warren out of the equation to a certain extent, they have the field to themselves what are they going to do with it going forward, though josh, whats your take on this well,holder in goog google i feel like we should be thinking about google, microsoft, amazon, a lesser extent facebook as what you would call a Supra National company. So weve always had multinationals these are supranationals, almost like governments unto themselves i guarantee you google knew a lot more about what was going on with the virus as it moved into europe than the w. H. O. Did you know, make the right answer is to start asking for these companies to start acting Like International agencies we talked about the imf before but you think about companies that have the resources to keep us all up and running on the internet, if this were happening in the 1980s, i dont know what we would be doing. How would you keep people at home for eight weeks, ten weeks . You probably couldnt. I think they are very important. I called amazon a utility yesterday not just because theyre bringing food to peoples home bus because of the internet and keeping us connected. Thats not going to change coming out of this crisis. It will be more of that. I continue to hold amazon, i continue to hold google. Most people if they have a 401 k they have exposure to all these stocks amazon is 10 of the qs and google is not far behind it. I feel these companies have shown how important they are to our lives. You dont have to love it, but thats the case. Yeah. And also for bringing food and diapers and whatever else people like me are ordering josh brown, Steve Sosnick, ann, thank you for joining us up next, Mellody Hobson and where shes finding opportunities in this market and the life changing quarantine advice she got from her husband, legendary filmmaker george lucas. Were back in 90 seconds isnt just a department. 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 our next guest says its time to look for opportunities Ariel Investments coceo, Mellody Hobson great to see you thanks for having me. I wanted to ask and kick things off about markets and of course your view on the outlook there. In the middest of big selloffs, this kind of volatility, how concerning are declines been and whats your key advice to them clients have been remarkably calm, and we work for some of the biggest institutions around the country, around the world, also work for small investors who invest in our mutual funds weve been pleasantly surprised by the calm. Have you been surprised to see this big snapback in the market i know you guys a few weeks ago were pretty optimistic in saying there were some great opportunities out there. Are you surprised at how fast youve seen this recovery so far . I would say nothing is surprising me right now. I think you have to be prepared for anything when it comes to this market. What we would say is a few weeks ago we thought there was indiscriminate selling going on. Things were just being thrown away, hand over fist, and we looked at some of the valuations that said even our worstcase scenario severe circumstances, we dont get to these numbers, so we saw opportunities, and we think, again, our lens is always from a longterm perspective were looking at three to five years. And we kept saying to ourself, this will end. Its not a question of if, its just a question of when. And with that perspective we said everything we own, we need to make sure it can make it to the other side and if it can, we will be okay mellody, clearly, you mentioned the word indiscriminate in terms of some of the selling we saw. Clearly over the last five to ten years weve seen huge floods of money move into etfs, into automated products do you think this is going to see a shift back in terms of the industry benefiting active investments once again well, im hoping people will see the benefit of active investing. Weve insulated on the downside here weve been able to outperform our benchmarks we have seen some of our other friends out there who are wellknown active investors who have as well and so hopefully there will be this sense that its great in a bull market but choppier, having an active manager can be worth a lot. And you said part of the strategy is finding Good Companies that can survive and come out on top on the other side of this, which sounds simple, but can often be tricky. How do you do that whats the best advice for investors on how to pick those stocks well, first of all, you know, everyone cant do that, so one, i think that if its something that makes you nervous or youll be up at night, go to a professional thats the great thing about mutual funds or an etf, what have you i think that for us, we started by looking at what do we currently owe. And we said to ourselves again, we stress test it. Some of the things that held up really well we actually opportunistally sold for things that have been thrown away then we looked at our watch list, things weve been dying to own, and weve repriced them for this new world and said are these still a good value last but not least, we have looked at things and continue to look at things that are falling out of the sky, so many new ideas coming out on a daily basis because of the blood weve seen in the market as a result of that, being able to take advantage of some of those new ideas we never thought we could ever own before you interviewed in the wall street journal a couple days ago and talking about the sort of work from home lifestyle, what its been like and the challenges of it the conclusion i thought was optimistic youve been trying to draw a more positive perspective from this whole experience. Well, first of all, i would say, you know, weve been in the foxhole before the Global Financial crisis feels like it was five minutes ago, even though it was over a decade ago so weve been in this mode of understanding when off crisis, not anything ever like this, but all of this has led up to this muscle memory that we have around what to do in these bad moments. What i talked about in the journal was this idea working from home, i felt like i had cabin fever. Im used to moving around, being in a couple cities every week. At one point my husband looked at me and said, its been a few days he said, you know, mellody, the europeans lived in bunkers during world war ii for more than five years. Rations. No school. Bombs falling all around you get some perspective people are really suffering around the world and you have everything you need. And that was just really one of those moments of truth for me. And i really thought that was not only very, very wise advice but led me to understand how much gratitude i should have for the life that i have and the life literally when you have people dying in this Health Crisis, that those of us who have not had it, have. So, you know, there was a lot of perspective that i think is very important, that i gained from that moment, and it also gives me the optimism going forward. But my optimism also comes from the longterm patient approach that ariel has if i look out three to five years, i am very confident it will be better than it is today. Mellody, you sait on the boards of j. B. Morgan, starbucks, others. What is the mood like at the Corporate Board level right now . How concerned would you say these companies and boards are about the recession that we are facing i never talk about the boardroom or the boards that im on, but what i would say is they are run by extraordinary leaders and i have a lot of confidence in them and their ability to deal with what may come. Mellody, there was one line in the wall street journal that i think must have been a typo i wonder if you could clarify for us it said, i typically have cnbc running in the background, but now i have cnn that was an error, right i said right now i was trying to get my arms around the coronavirus so i was watching some of the coronavirus information on cnn but ive always, always, always, always had cnbc running in my office from morning till night most recently just for a moment in watching the coronavirus numbers and things like that, i was getting some of that information. But i toggle back and forth. Our promo team can clever i edit that answer and well take the best we like from it thanks for joining us. Thanks for having me. Bed bath beyond results are out. Courtney reagan with the numbers. Courtney hi, sara. These are results for the Fourth Quarter, the fiscal Fourth Quarter, which was the Quarter Ended february 29th. So youre not capturing any of march with these numbers but the earnings per share did beat analyst expectations, 38 cents versus 20 cents estimated. Revenues of 3. 11 billion, also slightly outperforming consensus estimates of 3. 07 billion comp sales were down 5. 6 . The breakdown between stores and digital as you might expect, stores were lower but to the tune of 10 for comps while Digital Sales were up 16 . Again, that equals a comp decrease of 5. 6 bed, bath beyond is refraining from issuing any formal guidance it didnt know that cyber monday week ended up benefiting the fiscal Fourth Quarter because it was in the Third Quarter of the year prior which goes to show you how long ago that really feels now with everything that weve gone through the company has given several updates regarding its performance or rather its operations during the covid crisis and it is still looking at may 2nd as a potential reopening for the stores that are closed right now. But of course it remains wait and see. Shares of bed, bath beyond after hours are jumping higher by 12 we should note they were under significant pressure in the session intraday ahead of these results. Back over to you really quick question, courtney for a company like bed, bath beyond thats only doing online now and has all their stores closed, are they able to fulfill online orders at, you know, the normal speed are they able to get the inventories and the supply that they need when they dont have their stores up and running . So thats a good question we should just add as a footnote, about 175 stores are open because bed, bath beyond remember also owns byebye baby and harman, so those are essential stores under what is allowed to be open so some of those locations are open, but the main line bed, bath beyond, most of those stores are closed. With regards to the online operations, truly it depends the company is doing its best as are many others to fulfill those orders, but they also have to undergo some of these new Safety Measures at the Distribution Centers when it comes to things like social distancing and so you may have work thats a little less efficient. You may not have the amount of employees able to come to work at any one time. Then of course who knows what happens the packages are actually out the door en route to delivery with the backlog of the delivery carriers that were experiencing its a long way of saying theyre doing their best theyre not able to use store fulfillment so its another rub to the system. All right courtney, thank you. Up next, we will ask the ceo of hyundai V Dnorth America abo how coronavirus is impacting auto sales and the Company Moving to make payments for some joivers who have lost their bs during the outbreak. Well be right back. soft music [female vo] restaurants are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. And sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. A partner who makes sure every step is clear, whats up . Eard . For the First Time Ever you can watch the brand new Trolls World Tour movie. Wait for it. At home. What, what, what . Oh what a troll. The World Premiere is now in your home. 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 retail sales in the u. S. Suffering a record low in mashlg plunging 89. 7 , biggest decline since 1992, when the government began keeping track. Motor vehicle and part sales were hit particularly hard, down more than 25 from february to march. Joining us to discuss is jose munoz, hyundai north america ceo. Thanks for joining us. That 25 number could have been worse except for, you know, first few weeks maybe of march where people were maybe still buying autos what is that number going to look like in april well, good afternoon and thank you for having me. Well, indeed youre right. So after very strong january and february, march started strong the first two week, but then the last two were really, really very bad so it looks like the month of april is going to be somewhere between minus 60 or minus 80 the beginning we thought it would be minus 80 the latest news we get from j. D. Power is maybe it will down to minus 60 . Very, very tough environment jose, of course we all understand the typical relationship between price and demand, but in this extraordinary economic environment, for what is a bigticket item, of course, as a car, is price irrelevant could you lower prices significantly and it still not see demand pick back up again . Well, you know, in this current environment, all elements are critical in order to get plans back to operation, to protect our employees, and in that environment, i think that we need to start looking at what could be done in order to support an increase in demand. So at the end of the day, there are markets which are still open certainly after all this has passed, i think the consumer is going to look for any opportunity. In fact, we saw the last couple weeks of the month of march some regions in the United States were particularly active and had specific offers in the market, and then the consumers were there. It will be more than i know there already is what is it going to take to get auto production back online in this country . What are you waiting for first of all, we need to ensure our employees, customers, an healthy. So for a global manufacture like us and operations across the country, first and foremost we need to get authorized to be able to work in our particular case, we have our plant in alabama, and then in alabama, the current order is for us not to go to work through the month of april so, so far we have planned the return back to work on may the 4th. So thats number one requirement. Then the second requirement obviously is to get demand we are working as we speak within our company but also with other leaders in the industry to try to get an increased demand back in the month of may, june, and beyond jose, south korea of course where hyundai comes from is seen as one of the Success Stories in a relative sense of dealing with the virus in part because of pretty effective testing you guys are trying to bring that knowledge across to the u. S. And indeed some tests as well is that right . Youre absolutely right as you know, this pandemic hit south korea before the u. S and our company was very active and south korea as a country has probably been the leading country in terms of managing this bpandemic such weve learned through this process the key to control the pandemic not only through the pandemic time but also after, it is testing we are a company that not only cares about our employees but our dealers and our community. We thought what we can do to support in this situation. And thanks to the combination of the activities we do with the Nonprofit Organization supported by our Dealer Network and our experience so we decided to go ahead and got an agreement with the south Korean Company to put in place 65,000 tests across the United States. Because of this, the activities weve been doing for the last 30 years, we already have the foundation so we managed to protect the entire nation through agreements with 22 hospitals, which are Children Hospitals were really very happy with this action, which has been put with the efforts of everyone, with a lot of support from the hospitals participating in this event. Its a kind of a drivethrough testing and so far weve don more than 16,700 and we have managed to get it back up to 65,000 as mentioned. Jose, thank you so much for joining us congratulations and thanks for that extra help on the testing side of things thank you for having me theres a shortage of Antibody Test kits in the u. S. But that didnt stop 800 wealthy families in florida from getting their hands on them. The details when we return when you look at the Critical Issues facing our world, what do you see . We see breakthrough medicines getting to patients in record time. We see harnessing natural gas unleashing the promise of clean energy. We see engineers simulating the future to improve today. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. But in my mind im still 35. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex. Because im made to move. 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. Governor gavin newsom says every california should know the state will support him hes announced a 75 Million Program to get a cash grant of 500 to roughly 150,000 undocumented adults since they are not eligible for Unemployment Insurance and other relief measures. New sh says the program is the first of its kind in the nation. More than 100 members from mercy has been quarantined on land the ship has seen only 20 patients through yesterday and today because of the pandemic, most americans have an extra three months to file their federal and state taxes. However, not all states have chosen july 15th as the new filing date. Three states idaho, mississippi, and virginia have set earlier deadlines finally, an ohio man is using a shovel to maintain social distancing. Chris has been carrying a shovel around and asking for his flood orders to be placed on it. He uses a measuring tape to make sure people stay six feet away creative uses of social distancing back to you. Dont want to be on the other side of that shovel. Seema, thanks. Many americans cannot get access to coronavirus Antibody Test kits, but hundreds of wealthy families in one Florida Community just received them robert frank has the details whats the story here, robert . If youre lucky enough to be one of 800 residents of Fisher Island or their families youve gotten an Antibody Test. Its the wealthiest zip code in the country. It detects immunity. Their house keeper, landscapers and workers on the island will also get tests a spokeswoman for Fisher Island said many residents are over 60, high risk, and pay for the tests themselves at 17 each the island has given 200,000 to pay for tests in miami the university of Miami Health System, they provided these tests. They said in a statement that it may have created the impression that certain communities would receive preferential treatment and that it is now revising its system for providing tests thats basically because the outcry here, guys, that there was a sense that the wealthy were getting things that the rest of floridians were not able to get back to you. Any word on what the tests showed, robert well, its interesting. I just no word yet. I mean, we havent gone through all the tests. I just called the university of Miami Health System and just said, look, if im a patient, i want to get this Antibody Test, can i get it and they flat out on the coronavirus hotline said no, we dont have those tests and were not going to be providing them so that just shows that Fisher Island is getting tested if you call as a regular patient right now to the university of Miami Health System, you cannot get it robert, i dont know if this is trying to find a positive spin out of it, but the encouraging thing is that despite your phone call that an Antibody Test might nearly be ready to be available more widely yeah. This is the next phase of test critical to reopening businesses and the economy because you want to know whos immune, whos been exposed and who can work yes, this is next phase of tests. Krav kras g californias got a stud i do going on, miami has a study with more tests going out to the public this will become more widely available but right now its interesting Fisher Island, everyone on the island got them but no one else in miami to that point, i think its a good one because the question is do they even take accurate tests. Its different to talk about the testing for the virus and the serology Antibody Tests that robert is talking about, which have not been ready for primetime because theyve not been considered accurate enough, like what we saw in the uk i think the German Health minister said on monday two to four weeks away. That was seen as optimistic. Exactly. Youve got my question that i was trying to put across i did still ahead, energy dragging down the Broader Market today. Up next, we will take a closer look at oils continuing slump and the stocks weighing on the sector oil is telling us big production cuts is not anywhere sufficient to match the collapse big oil, exploration and production and oil service companies. Thats how you break it down big oil across the board, all of theefz briefly rallied at the end of last week, not anymore. What do they have in common . They do stuff all over the world. Theyre global then exploration and production companies, mostly they work in the United States, of course a lot in the shale producing region, hess, devon, continental, apache, all of them down dramatically as well today. They rallied briefly at the end of last week then you have oil Services Like halliburton and slchlumbergersc, they have a complete collapse in cash flow in addition to a really high dividend right now, 10 , 13 in the case of these two. Thats definitely going to be under pressure as they start reporting earnings guys, back to you. Just another ugly day there thanks, bob. Up next, we will talk to the head of one Pharmaceutical Company that just started testing a new treatment for covid19 pneumonia right after the break. To connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. [female vo] restaurants are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. Welcome back Numerous Companies from gilead to novartis are racing right now to find vaccines and treatments against covid19 vanda farnlss, a 600 million market cap Biotech Company Just Announced today it enrolled its first patient in a new Clinical Trial for one of its medications which it believes can improve the respiratory tract inflammation that effects some patients one this of third in wuhan did develop acute respiratory syndrome and half of those patients passed away right now Vanda Pharmaceuticals ceo joins us thanks for joining us. Tell us about this first patient enrolled in the Clinical Trial and what your treatment option for them looks like. Thank you for having me on the show the study is a large 300 patient study patients are randomized to receive the drug or a placebo. These are hospitalized patients starting out in new york with covid19 confirmed pneumonia what were aiming to do is to stop the inflammation to advance to the severe acute respiratory distress syndrome that, as you said on your show, often leads patients, 50 of them may die. So we talk quite often, doctor, about various treatment testing going on how is the drug youre working with different from some of the ones we talk about quite often yes what we hear is the development of vaccines, antivirals, and of course we heard about the i06 inhibitors there are two universe going after the virus to help the patient survive. This study aims at helping the most severe patients survive and get off the ventilators. Vanda is going after a comprehensive program that also includes looking at development of antivirals. Were working with the university in chicago, trying to develop inhibitors that actually attack where the virus goes to replicate and develop. But this specific program looks at the ability to interfere with the information and hopefully reduce mortality whats the time line to get some of this data for these treatments that youre working on maybe more importantly, whats the time line to get them out more broadly to the very sick patients urgency is of paramount importance here. People are dying now in new york and other places and are dying quickly. We see this urgency. In order in order to get the study enrolled with 300 patients certainly, there are patients right now in new york. We need they need hospitals like lennox hill where the study is done with the system. If we enroll 300 patients quickly, we could have the results out in the next two months or so and this is of paramount importance and fully approved and manufactured within that space of time . This drug is actually in the last phase of clinical development. If were successful we certainly will ask the fda for an accelerated approval and well have the manufacturing in place to be able to provide the product. Dr. Polymoropolous, thanks for joining us. Louis vuitton and chanel stepping up, the details in your full good news rundown when we return when you look at the Critical Issues facing our world, what do you see . We see a billion more people breathing free. We see access to fresh food being the global norm, not the exception. We see homes staying cooler, without the planet getting warmer. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. 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. Time now for our daily good news rundown, spotlighting the stories of positivity and charity that are out there on a daily basis. A number of Luxury Fashion labels including louis vuitton, bu burrberry and chanel are making gowns for hospital care workers. Each though restaurants have been laying off thoudsands, ghot kitchens are seeing a surge in demand and are hiring. Sams club are dedicating shopping hours called hero hours. One business allowed to reopen its bookstores the culture minister saying he recognizes books can be an essential good for people stuck at home. One 99yearold british world war ii veteran has raised 9 million for donations to the nhs by walking laps in his back garden in bedfordshire and the initial target has 100,000 pounds and its been viral and congrats to him and just an amazing achievement. Finally an update we reported that Reese Witherspoons fashion line was giving away dresses to teachers and the application crashed almost immediately unable to keep up with demand after receiving nearry a million requests significant. The world war ii hero really stands out to me, sarah. I have to say. Amazing endeavor yes and good thing they raised so much money. Up next, concerns over the Small Business aid program for the from the u. S. Government coming to a head, ndfus set to run out later today and well break down the details when we return at t has connected us every day for over 100 years. And were here for you especially now, 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. The Small Business loan Program Expected to run out of money later today. Kate rogers here with details. Kate calle. Hi, sara, thats right. A source familiar with the program says it could run out as early as this evening and that puts renewed pressure lawmakers to come up with a deal with a second round of funding for this program. As of this afternoon House Speaker nancy pelosi asking that aid be allocated for banks, Small Businesses and state and local governments and hospitals that are on the front lines of the covid19 fight as of this afternoon more than 1. 4 million loans had been aloned those sb alone numbers for a total value of 308 billion. We know this program was funded for 350 billion one question we still dont have the answer to, is how much cash has made its way out to main street from banks and we continue to ask and as we get that number, we will report it. Based on the j. P. Morgan numbers, its probably a quarter of it if they had anything to go by they said theyd funded about a quarter of the loans approve and we dont have the final for the banks. Kate rogers. Yeah, thats right. As soon as you get that etran number oh i was going to say as soon as you get that loan approval number your fund should be disbursed within ten days and the more businesses that get that loan approval number the quicker the funding should go out the day per treasury guidance so lets hope it happens that quickly kate rogers, thanks so much watching tomorrow, Morgan Stanley numbers and Goldman Sachs, maybe they can outperform and goldman finished flat today whereas the index is down 6 . One thing i just want to say is that costco just raised its dividend this is important because it follows Procter Gamble yesterday and j j yesterday at a time when many investors are looking for dependable dividend in the absence of yield. Theyre finding them in some of these staples. And a sign of strength for those companies. We are out of time on closing bell. Brian sullivan has you covered next. Welcome, everybody to cnbcs fast money and our continued coverage of markets in turmoil i am brian sullivan, thank you very much for joining us another big night and we gave back in the market everything we gained yesterday up one day, don the next the dow jones average falling 400 points and the nasdaq losing 1. 5 today we have karen, guy, tim and dan. I also