You are watching cnbc. Welcome to the show live at cnbc global headquarters. Lets get right to how your money and markets are setting your day up. Stock futures pointing to positivity at the opening bell if these futures hold. S p up by about 15 and nasdaq up by about 81. S p down about 485 points yesterday. Some are selling the safety of bonds. Twoyear just below. 20 and 10year. 65 checking the price of oil. You can see slight positivity. Wti crude back above 20 a barrel crude up a similar amount. This is as a new report that suggests Trump Administration is weighing a plan to pay u. S. Drillers to keep oil in the ground amid that big back stock there is going to matt in singapore a mostly weaker session for the asia markets investors waiting to see the jobless claims weve got a fairly large piece of Economic Data here in the form of chinas q1 gdp china market did manage to hold up with a very small gain. The shanghai composite holding with a third of one percent. Holding on to hear the gdp industrial output and the like in hong kong, we saw that market trading down on the session. We are watching shares of the flagship carrier there, Cathay Pacific, in march, traffic declined by some 90 over the months of april and may, it will operate at 3 capacity and expects only 1,000 flying passengers per day. South korean flat on the session. Middle income earners. Also watching Election Results with incumbent press moon jaein likely to win in parliament as well and in australia, we saw the economy create jobs in the month of march however the devil was in the details. Likely to see applicants number significant weaker thank you for that. Now to the early trade with European Forces with Julianna Tatelbaum in london. Good morning european markets are recovering some of yesterdays losses but we are trading off the highs of the day some of that early optimism fading now yesterday, the main benchmark declined more than 3 breaking a fiveday win streak. Italian markets are outperforming in the broader European Space a couple of things to point out in the virus front germany has unveiled easing measures germany out with aggressive testing early on and now they are reaping the benefits uk stocks are underperforming this morning sector wise, technology is leading the gains. Oil and gas one of the key underperforming markets of the day. We are all watching the jobless claims report out of the United States in europe, well be closely eyeing lvmh and loreal numbers which will be out. The number of global coronavirus cases have surpassed the 2 million mark with the biggest number here in the United States. The death toll here approaching the 30,000 mark. Frank holland has the latest President Trump says he will discuss guidelines for reopening the country later today. He suggests the u. S. Has passed the peak of the coronavirus with low areas of infections to begin pulling back after may 1 harder hit areas may have to wait an additional month or month. Meanwhile, we learn about trumps Advisory Group the vast majority on the list were not informed and not told in advance what their roles might be and invited former ceos that were no longer in charge of their Respective Companies later schumer and pelosi set to have new talks. Just a few weeks after congress set a historic 2. 2 interest illon stimulus package a key component is the fund for Small Businesses quickly running out. From washington, d. C. To china. As leaders there cut the red tape in the race to find a vaccine. One country given the green light to begin testing is speaking to cnbc eunice un wi eunice yoon with more on that story. This is all about the race to find the cure. Thats right. There are three Chinese Companies that got the green light to go into Clinical Trials china listed sinovac to begin testing. His Company Sinovac got approval to start the trials for a vaccine. A vaccine shouldnt be for a country or area. It should be for the globe his team using an older method that he thinks is safer. It uses a virus killed by chemicals. The vaccine is being tested at this lab and will be tested again before going into Clinical Trials 100 volunteers are being recruited and doses of various sizes are being prepared here. Theyll test the areas in china or overseas. Faster than normal authorities have expedited procedures and allocated land. Past Regulatory Approvals for human trials have taken half a year for this vaccine, only one month. He says production could start in three months. His goal is to make 100 million doses a year there will never be enough as Everyone Needs to be vaccinated. One possible hurdle, that is politics and the push back on china. He said hes not so concerned about that or the impact on his business because he said at the end of the day, everyone would need a vaccine eunice yoon, about 70 70 coors or vaccines being worked on around the world thank you. When we come back, Big Bank Earnings raising fresh concerns about the economic blow stemming from the coronavirus we break down those results. And the outbreak forcing some americans to hit pause on that big home remodelling project. And the new food supply worries after smith field food announces it is shutting more of its plants we have more when cnbc returns after this and ready to help you find opportunity. So. Lets talk. Edward jones. Its time for investing to feel individual. Swithout even on yoleaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 12 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. Welcome back to the show you are seeing a live shot of hong kong. The special Administrative Region where it is just past 5 12 local time. They close up the day for the markets. Welcome back well look at futures. We are indicated slightly higher the dow would open up by about 75 points that does represent a slowing of momentum for the markets in the last half hour or so s p up by about 12 and nasdaq up about 73 investors bracing for the jobless numbers this morning 5 million americans likely filed for Unemployment Benefits following last weeks claims for 6. 6 million. Joining me now, Portfolio Manager at diamond Hill Capital Management bill, is this now the key number you have to watch when it comes to the Economic Impact of the coronavirus here in the United States well we know it is going to extremely high levels, probably 15 , maybe on its way to 20 i think the Market Participants are well aware of how bad this is going to be if these numbers come to fruition, it would almost represent one in every eight working americans out of work this time around how is that going to play out in terms of Market Expectations for when this economy can get restarted in a Financial Capacity one thing that is clear, this is not a garden variety recession. This is much worse than that and thats why the government has stepped up in such a big way have you seen any reverberations ahead of this as the markets deteriorate, and treasuries move forward with yields, how are companies trying to shore up monies borrowing rates have gone up even though the fed has lowered the fed fund rate. If you go to the market on march 23, Investment Grade companies had to pay two Percentage Points more the government has stepped up to bring those borrowing rates back down to where they were prior to the crisis what you are saying is that spreads have widened out companies are now paying moreover maturity bonds that indicate risk is higher and creditors have more payments what companies are seeing the most stress in your mind it is across the board. Energy is under pressure, retail is under pressure. Anything retail or travel related is really baring the brunt but it is really across the board. Has stress created opportunities as those markets have dislocated in some way. Have they said, things have sold off so much, there is a place to dip in absolutely. Returns from here forward should be fantastic it starts where the government has attenuated the risk. The spread goes from 100 basis points to 400 basis points they are back down to 250 basis points and probably heading to over 100 basis points at the time there is still plenty of time to generate strong return in Investment Grade credit. That is the place a lot are watching but that ship may have sailed bonds may have surged in value since what we saw from months ago. Are those junk type bonds something you can look at now and say, hey, 12 months from now, 14 months from now, they are a good investment . You might want to start with the fallen angels or expected fallen angel because you might get that type of support you want to stick with Higher Quality bonds. They are much smarl weights than the etfs the fact that they are buying or can buy highyield etfs can lead to some what of an extreme move up on the etf bond i would focus elsewhere but stay in the high quality of the bond market thank you, bill we appreciate it still on deck for the show, the ceo of one top Movie Theater chain talks about the normal activity of catching a film. Just when he thinks hell be able to do that yet again in a theater. Announcer todays big number, 67. 46 thats how much wti crude has tumbled so far in 2020 on pace for its worst year ever. The commodity fell to its worst year ever since 2002 it is an understatement to say that i was extremely worried. I was overwhelmed. And i didnt know where to begin. I came across sofi and it was the best decision of my life. I feel cared about as a member. Theres no extra costs for it or anything like that. Its all kinda like, through the app. Were getting a super competitive Interest Rate on our money. Were able to invest through the same exact platform. I really liked that they didnt have any hidden or extra fees. Sofi has brought me peace of mind. Truly thank you for helping me prepare for whatever the future has in store. Its all because sofi let us see light at the end of the tunnel. So thank you. Thank you. Welcome back what you are seeing is a live shot of times square in midtown manhattan, new york city very quite there but even more these days with shelter in place orders in place. Frances rivera is not far from there in the news room with the latest good morning at the epicenter here new yorkers are facing tighter restrictions the governor will require people to wear face masks when in public including buses, subways, crowded streets or inside stores that goes into Effect Tomorrow the state of maryland will require people to wear masks in public the first saliva testing site is open in new jersey. Rutgers University Says it is safer and more accurate. Results come in about 24 to 48 hours. Another sign coronavirus cases may be peaking in the United States demand for tests have dropped significantly since april 5. They now have more capacity to test people who arent as sick thank you as we head to break, take a look at shares of United Airlines the company says it expects to receive about 5 billion from the federal government in the aid bill in a bid to soften the blow warning employees to brace for job cuts saying travel demand is essentially at zero and shows no signs of improving in the near rm bc is back after this. But right now, the world needs all the good that we can do. To everyone working to keep america strong, thank you. 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. Stocks looking to bounce back as investors brace for key jobless claims data. President trump ramping up his push to reopen the country amid the coronavirus outbreak the latest on the apparent plan to get the u. S. Back up and running. The u. S. s biggest banks bracing for a tough road ahead it is thursday april 16, 2020. You are watching cnbc. Welcome back to the show im dominic chu. Lets get to how your money is shaping up half way through the 5 00 a. M. Eastern hour the dow would open up by 74 points and the s p up by about 11 and nasdaq by about 75. That is green but off the best levels right now well see how that number is different closer to the opening bell were seeing movement in yields. Twoyear currently below 21 basis points or. 21 10year a hair below 64 basis points or. 64 remember, prior to today, we have been around 74, 75 basis points so we are watching a little lower move in yields. Lets go worldwide matt taylor is in singapore with asian markets and Julianna Tatelbaum is in london with early european trade matt, well begin with you hi, dom a predominantly weaker sessioner to t for the asian market waiting to see what the u. S. Jobless claims are marking time ahead of chinas q1 gdp. Japan down over 1 we did see a gain around the shanghai composite in hong kong, we did see numbers tracking weaker. We saw Cathay Pacific up by about 1 it warned that march traffic was down around 90 . In april and may, it will operate at 3 of capacity and doesnt expect to see anymore than 1,000 customers flying per day. South korean markets were closed for election. It looks like president moon jaein fwinning that election. And talking about the second stimulus worth 6. 2 billion to fund middle income earners and Julianna Tatelbaum is standing by in london with the latest there good morning good morning, dom european markets are trading modestly this morning. The main benchmark lost more than 3 . Breaking a fiveday win streak we are off the highs of the day. Some of that earlier momentum has faded. Italian outperforming the region germany is in focus. The government has unveiled initial easing measures. Germany was fast out of the gate in terms of aggressive testing and they are reaping the benefits of that now the uk to extend the lockdown until early may. Uk stocks are underperforming broader Europe Technology is leading gains there. Oil and gas under a little pressure stabilizing relative to steeper falls than we saw yesterday. European investors will closely eye the u. S. Jobless claims report due out in a few hours. We have lvmh and corporate earnings back. Now to washington, d. C. , President Trump is set to unveil new guidelines in a bid to get america back in business eamon joins us now what date is the president now eyeing to figure out when to reopen the country dom, the date the president has been talking about is may 1. It is not clear that will be announced today. Hes been talking about that as a guideline. He expects today to roll this out to the governors first and then to the public not clear what hes going to announce here is what the Vice President said yesterday we are saving lives and healing our land we want to thank the American People for all you have done tomorrow, well be presenting new guidance to the country about how we build on our progress and reopen america in a safe and responsible way so not a lot of detail there. We do know the president will have a call later today at 3 00 p. M. Hes got an evening briefing with the press it might be the details of what he is planning discussing when and how this will happen. Initially suggesting he has total authority. There was a lot of push back from scholars and governors. The president said, well, ill authorize the governors to make their own decisions. The governors kind of chaffed at the idea of being allowed to do their own jobs ultimately, this is going to be up to school boards, employers and consumers as it is to the president. Because people wont go back to crowded spaces like theaters and arenas if they dont feel safe a great point, even as a parent, even if schools are open, how comfortable would we be sending our kids to schools if those schools arent clean or disinfected there. We are learning new details about the launch of President Trumps Advisory Group to lead this u. S. Economic revive al who is in it how many people . What is it going to do is what is it looking at in terms of metrics to reopen the economy. We know it is as many as 200 people that have been invited from 17 different Industry Groups a lot not finding out they were on this thing until the president announced it earlier in the week and called their names out publicly some got an invite an hour or couple hours before the president announced that there was real confusion i talked to a number of members who told me there was real confusion about what exactly these groups were going to do. What the purpose was you get the sense this is less a task force and more a list of smart and influential people the president can talk to on Conference Calls he had four of those calls yesterday. This is a huge group and massive Conference Calls it is not clear this task force is going to produce any work product or report, more of a sounding board for the president. It does harken back to the early days when he had that big business round table type group of ceos advising him thank you for that update, we appreciate it. We await results from Morgan Stanley. This is the last of the major u. S. Banks to report First Quarter results. It has been a sobering week as bank of america, citigroup, goldman sachs, wells fargo, Jp Morgan Chase have set aside 25 billion in loan losses due to the coronavirus. It is not just the numbers, comment from earning calls paint a picture. Cfos working under assumption of recession. And saying they should expect more refirm build. My next guest says you need to look at the banks in two different groups the haves and the have notes in the ability to weather the storm. Welcome my guest r. J. Grant. Thank you for being with us. Im looking through all of these charts it seems there is some positivity to start maybe when these reports first come out but a little bit of news throughout the course of the day. Is this the trend you are seeing, banks are not exactly coming up to speed with loan loss reserves they are dealing with right now caller sure. Good morning thank you for having me on i appreciate being here. I think there is a few dynamics in play. The big thing first off away from earnings is that last week, we had a monitor rally in the banks. Both big banks and regional banks with the unprecedented fed action going into earnings. There were some very big short bets from investors. When the fed came out on thursday, that kind of capped the monster weeks. The bkx is up around 30 we are coming in a little hot into earnings. I think these stocks were prices a little for perfection. But they were priced a little high coming in to the prints when we saw the prints initially there was a little pop but the commentary on the calls and investors took a look at the massive reserve builds preparing for potential losses there was a real lack of buyers coming out of those prints so r. J. , lets dive a little bit. We only have a certain amount of time here but the Loan Loss Provisions basically expectations that loans go back and having to put up capital against those expectations that is driving a lot of these earnings lower than some out there. If these bad loans dont actually come to fruition, if the economy gets going, that can be a tale wind in future quarters if you dont need the cushion, you put them back into earnings down the line. Is that something you could see if the economy gets going in some kind of capacity in 2021. That is the big unknown, right. That is a potential huge upside driver a lot of folks are thinking the banks are overprovisioning it might look ugly if we do see whether it is back to work, a vaccine, treatment, if we recover quicker than expected where losses were as big as expected. This could prove to be a huge tail wind and this could be huge for all of the banks we are showing a graphic now in premarkets these have severely in some cases underperformed their larger cousins take us through why the regional banks are seen as such underperformers. Sure. Just to bring it back to the big banks for a second they generally have more levers to pull in environments like this they have more Capital Markets all of the trading numbers driven first by march. In the back half or second half of february were strong as well. The Capital Markets trading. Debt raising, large banks with strong restructuring practices at these times basically, big banks have more levers to pull in difficult environments coming out of these earnings, big banks are looking at what levers to regional banks have to pull it is nowhere near what the big banks have to pull they are much more tied to the curve to spread lending. They are going to be under pressure they dont have enough other activities and other fee raising activities to whether the storm as well as the big banks it is a relative trade now where regionals are getting left behind r. J. Grant, thank you for joining us thank you for having me coming up in a first on cnbc interview, Morgan Stanley chairman and Ceo James Gorman will be here 9 30 eastern time here on cnbc coming up on the show, google becoming the latest Major Company to shift its Business Strategy amid the covid outbreak take a look at shares of bed bath and yonbeyond up 15 announcing First Quarter and full year 2020 results will be negatively impacted by the coronavirus. Decline to provide any further guidance for fiscal 2020 on a fullyear basis. We are back in a moment. The number of coronavirus cases around the world has now moved to a point where it surpassed 2 million with more than 600,000 of those in the u. S. Alone Frank Holland has more on the headlines. Good morning smith field foods announces closing two more of its u. S. Plants at a south dakota slaughter house that produces roughly 5 of the pork in the u. S. Without that slaughter house running, its other facilities cannot function. Google parental fa bet will pull back on hiring. The ceo told employees, they will instead maintain momentum where users and businesses rely on google for support. Ceo of cinemark, movies replaying popular films. The chain hopes to reopen some theaters in july back to you. The remodelling industry typically sees a boom during the spring time but a survey by National Kitchen and bath said 70 of their businesses have been impacted with roughly half saying theyve had project outright delayed or even canceled this as Home Builders reach the sentiment and suffer the biggest monthly drop on record joining me now bill darcie ceo of kitchen and bath. I have a particular interest i did a number of home projects. Three things supporting me record low Interest Rates, rising stock market and home equity one of those things, the stock market, has been kicked from under that stool what is that doing you no . 68 of our members feel significantly impacted 50 projects delays and less than 20 canceled. The pipeline is still because precovid19, there was a lot going on as you said, a lot of work to be done our members staying busy through the month here with that pipeline work. Consumers seem to be willing to continue with those in the middle of the project. In the middle of the project, i can see them getting done but how able are people to actually say, i want to start a new bath project right now but i dont want people in my home going back and forth i dont want people going through and inspecting and giving estimates as a worker, i dont feel comfortable going into somebodys house if i dont feel comfortable with how things are there . Feeling success and stability are using virtual tools. We are hearing virtual ininspection, virtual design, e design as much as they can, they want to keep that moving. Reality is, a lot of people are hesitant to start something new and fresh right now. There was a lot of demand and projects in place precovid and a sense of getting back to normalcy precovid one of the things weve talked about is how quickly some industries can do it how quickly can home improvement, home remodelling pick up if the president or governors say, go back to work hoour members can pick up quc in the planning. I worry about the supply chain any factories that have been closed how quickly can you restart those . Right now, with so much built up supply lets talk about the trends before home remodelling and what it will take and how quickly it will take to get there reopening hypothetically later spring, early summer wellness precovid was an important part when you are spending a large amount of your time in homeworking a home working and living there, we are finding people are doing a lot of diy projects. I think that will lead to more projects in the future you really try to look for Business Opportunities in the future i think investing in your home seems to be a really good idea outside of when the Health Crisis subsides some in order to bounce back, America Needs to accentuate the composi positive markets are bracing for the latest jobless data. As a reminder, watch or listen ave on the cnbcpp cnbc is back in just a moment. There are times when our need 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. Welcome back u. S. Futures pointing to some gains at the opening bell. The dow would open by nearly 100 points s p would rise roughly 15 points and nasdaq by about 84 investors brace for a key piece of the puzzle. This week, jobless claims data coming out later this morning. Expectation of some 5 million americans to have filed for the Third Straight week. Nearly 17 million have already filed claims since states imposed stayathome orders in march. We will have lost as many jobs as created since the great financial crisis in 2009 let that sink in a bit lets bring in ken seymore. What are you expecting today is that number five point some million underestimating things again . Im not sure it is. If we get to 5. 1, that will move the rate to probably 15 by the end of april the question is, are we trading on data we knew was going to be awful. We complained about retail sales and Home Builders that was catastrophic retail sales werent terrible. We know what it is going to be from a Market Participants perspective, markets reacting from position, fed Balance Sheet trajectory or lack thereof of covid19 we have Industrial Production numbers in europe that were okay weve had import, export numbers showing the resurgence in march. Taiwan was never really closed showing their data was decent on a relative basis macro maybe not what it is about but we have to Pay Attention so markets have two things they look at they look at direction and magnitude. We talk about the dismal data out. Empire manufacturing, record low, retail sales, Industrial Production weve known for three weeks the data was going to be bad some thinking maybe not as bad how is the magnitude affecting the magnitude of moves in the stock market right now i think the magnitude of the data is not as significant as really the estimation of the duration of this period of lockdown thats why germany which is the model of how to handle covid19 reopening on monday slowly is something more important for markets. Again, that news was out there and markets didnt really care markets have moved 25 off the lows quickly a lot of that level, whether you are looking at 27. 50 on the s p. We are on an earnings season, you think about the banks, they are doing okay the earnings put out there were in line or exceeding those from the financial crisis from 11 years ago. The, ma et is bracing for credit trying to look through to Balance Sheets and thats what investors should be doing right now. So trying is the key operative. What can you hang your hat on with regard to the earnings season coming up look at companies that are bringing cat flow as much as they can look at teem to weather the next few months auto is fine a different cash flow. It has been important. Great to get your thoughts. Cnbcs market coverage is back right after this. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need starting at just 12 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. Good morning stocks looking to bounce back. Well get another read on the economy with the latest jobless claims number. Expecting another brutal week. President trump set to unveil new guidelines to reopen the country. He says the u. S. Is passed the peak of the coronavirus outbreak thursday, april 16, 2020 squawk box begins right now. Good morning, everybody. Im becky quick along with joe kernen and andrew ross sorkin. Weve been watching the futures keeping an eye on things yesterday was a big down day for the markets. A decline of 1. 8 . S p down about 2. 2 . That was the biggest loss weve seen for both of those major averages since april 1 things looking a little better this morning the dow up around 100 points, s p up around 16 nasdaq up as well. Looking at the u. S. Jobless claims right now, it is more important than ever. Over the last few weeks, weve seen over 16 Million People file for jobless claims and this week about 5 million additional claims. It is hard to say exactly how the market will move one way or th