Transcripts For CNBC The Exchange 20240713

The charts are thrown haywire by the fact to close negative yesterday. Trading about 5 today june is at 12. July below 21. All sunk considerably just this week lets get more on the interplay of oil, stocks and the earnings. Gets get 0 ever to bob pisani for that this hour hi, bob. Well, you know, that collapse in oil is weighing on things but not quite as much as you might think. It is a little bit more of a general risk off day in terms of coronavirus. Lets show you what the sectors are doing right now. Sitting near the lows for the day essentially. S p 500 down between 70, 80 points throughout the day here senior citiz sectors, technology and financial stocks that are down, thats going to drag Everything Else down. Industrials not doing so well. Energy is down but not muches the rest of the over sectors and thats interesting to see there. Momentum stocks, stocks done well recently, theyre kind of weak today and advance micro has done great recently. Microsoft is getting killed today. Starbucks was good it is down Northrup Grumman coming off the lows and people think its too far too fast Energy Stocks, brian will talk to you about energy but we dont see the big declines of Energy Stocks as the commodities. Some are positive. Thats a minimal decline for exxonmobil high beta stocks usually move a lot when the market moves and theyre not at all today finally look at high yield the collapse in oil price the putting pressure on high yields and own a substantial part of the debt of oil companies. Back to you. Absolutely looking at all angles of this bob, by the way, you have looked at the etfs, the banks that are associated with this this is just the beginning of the fall i mean, the Oil Price Collapse is happening right now and takes a long time to figure out the consequences of that are. Yes its going to take a while i think the big thing is just getting some stability in the price of oil because thats whats leading to the craziness in the futures contracts may contracts going to expire today. We see pressure on the june contract part has to do with the way the futures market is set up we are focused on that normally we dont. Hopefully well get stability of the price of oil and normalize. Might seem like an eternity right now. We take your point thank you. The may oil contract set to expire in less than 90 minutes time President Trump pledged support for the industry tweeting well never let them down. I have instructed the secretary of energy and of the treasury to form late a plan to make Funds Available so that the very Important Companies and jobs will be secured long into the future that was the president today lets bring in Brian Sullivan for the latest like pisani said, any hope of stability and what should the industries expect from the president and the administration sounds like a little bit of a bailout there. Who knows . No specifics given maybe we have to talk to the secretary of energy about that see what theyre thinking and might explain why some of the equities held up reasonably well to bobs point its been obviously a difficult situation. Been talking all day on the phone to futures traders and hedge fund you name it, about what happened yesterday and today. It is complicated but by the way only about 1 100th of 1 of the may contracts traded negative. They have been going for a year an you have thin volume, the tasks trading for the nyse and you have hedge funds with big positions. You can jam that trade down. I used to be a commodities trader you watch people do it its not hard to push it into negative territory and probably why paul will say it could go down to negative 100 we can fight about whether or not etfs played a role bob probably has a different version than i do. That said, the e if you put ten grand of mr. And mrs. Evans money in the uso when it launched they would have about 600 today so you put in 10 grand 14 years ago youd have 600 today that about fill up the rv with cheap gas. Right the irony, brian, i was thinking back to 2008 when oil hit 100 a barrel for the first time. That was also during a really bad recession. It hurt consumers but then the energy patch kind of helped offset some of the rest of the harm it was doing realtively well the energy patch is hurt and very few people can benefit from the cheap gas. It didnt offset it it was it. The reason that i got involved in energy was not because i loved the hydrocarbon but in 2008 and 2010 trying to recover from a nation, energy, oil and gas, was the only industry adding jobs. If you go back an look at the data, wnl of the reasons we launched the hopeium come pain in 2011 is that oil and gas powering the entire economy up it made the overall data look less bad and it drove the market and maybe added a positive layer of psychology thats why its so risky now texas has been the growth driver of most of the united states, as far as population and whatever it is. This is putting texas directly at risk. By the way, i know you have ryan sitten on. I watched their Rail Commission hearing. You could tell him he gave me a heart attack and apparently the assistant attorney general of texas is Brian Sullivan. He is like were calling on Brian Sullivan i wasnt patched in. I was eating a hot dog he has to change his name. So well said about oil and gas. Reminds me of how we felt about Silicon Valley in some of those years, as well so nice to be something expanding like it was and will check back with you. When we we can to the Energy Secretary next year. Ryan sitten is one of the three members on the Texas Railroad commission and only in favor of taking a vote today only cuts. Ryan joins me now. It is good to see you, sir youre talking about how much youre 20 Production Cut for texas . Thats what i believe we should do. Tie it to other areas around the country and the world, yes. Thats a big if if texas does it alone, you lose market share, right . How much market share is there . Right . Talking about the Global Demand for oil being 75 Million Barrels a day or less, no ones gaining market share if theres discussion, wait a minute, if texas cuts an i alone, do we lose market share maybe. Now, that said, the reason that we should prorate only contingent on other people prorating is because if we do it alone its not providing stability to the market. We still think the markets oversupplied by 10 million to 15 Million Barrels a day. And this would bring the balance closer starting to see demand back in china. Is prorate a fancy term for quotas no. In terms of proration is knowing how much you can produce, setting a limit on that is a little different than saying an allocating amount to produce over time. Quotas is a way of just allocating that, looking forward, regardless of what someones development has been in the past. You would have been ready to take the vote, hopefully youd want the colleagues on board with you to say, yes, well prorate but you would do that only in conjunction with other states and would canada be part of that . It would be my position is we when we vote may 5th, prorating a Million Barrels a day roughly in texas, 20 , contingent on 4 Million Barrels from other states, nations, then we enact those cuts on june 1st, it provides a runway of 35, 40 days if it was today, 35 days, 25 days doing it may 5 for the other people to get on board knowing that texas is chipped in a million. North dakota has a meeting this afternoon oklahoma is talking about maybe having regulators consider limits concerned that this is wasteful the chairman who will speak to tomorrow said he reached out to canadas oil minister and offered to help if you prorate this is like a north american opec shaping up here how likely are the odds to come to deal and agreement . Put it this way, the harder prices are, the more we are seeing Contract Prices in the low Single Digits an even going negative i think the odds are better it is hard to make the argument today theres not waste an waste to the tune of literally tens if not hundreds of millions of dollars a day just in texas so i think that the impetus is there. The law is there for us to do something. The question is just how look you mentioned canada i talked to sonja savage up there. This is an ongoing conversation. Talked to the Russian Oil Minister again yesterday and saying that we need more Decisive Action but any additional action, any discussion of additional action by opec he said would likely be dependent on whether or not texas is able to make something formal happen so i think theres momentum and seeing the massive amount and glut of oil on the market versus demand its incumbent upon us to act. When do you think that action could happen, real quickly i think may 5 well have an order prepared and i believe theres a vote on may 5. I think that was the message that you got from the three of us today. All right ryan, thank you again for your time for joining us today with that update. Be sure to catch the first on cnbc interview with chairman christian 1 00 p. M. Eastern time well see if anything more comes out of the hearing today and then may 5th looks like the next milestone. For more im joined by dan pickering, founder of pickers investment partners. You thought this was becoming the best investing opportunity since 1986 do you still feel that way what do you make of the deeply negatively price of crude oil . Yeah. It is unprecedented times, kelly. No doubt that this is kind of worse and crazier than i think we expected it would be, the way stocks are acting, better than the market generally energys been the worst sector for the last decade and i dont go its surprising it is discounting some of this craziness already so still a very Good Environment to sort of start picking the winners, definitely hard in the near term and i think it plays out over two or three months with pressure on prices and so youre getting the list together now and thinking about what you want to participate in as we move ahead. You know, we are going to speak with paul sanke in a little bit hes an analyst. But the kinds of scenarios that he talks about that Conoco Phillips to merge with chevron, met with a high degree of skepticism and the call of negative oil prices coming true. Just how extreme might conditions get to reshape the companies in the oil patch as we know them . No question that were in i mean, the industry is very, very challenged and so whats playing out on our screens is going to continue to play out over the next couple of years and companies are going to have to do something to survive and so, there are going to be significant winners, probably going to pick through the ashes of the losers and find the good assets there and so, i do think that consolidation is a natural outcome of this. May take a couple years to play out so immediately im skeptical it would happen immediately but were going to have fewer companies in a couple years. Yeah. I guess the question for investors is maybe how to bet on the acquisition tar gets or something to that effect my final question is if theres anything that you heard from ryan sitton of the plans with north american producers to prorate oil production. Yeah. When i look at the actions being taken, whether its opec, Texas Railroad commission, President Trump and all of these things, demand is down 30 Million Barrels a day. Until demanld gets better, the actions by these Government Entities it is going to take too long it is not going to be effective so i think we have to see demand come back. When it does, these supply actions will matter and help support price but its a free for all in the oil markets and i think we are just it is a sideshow seeing what the various Government Entities do in the short term. Feels that way. The longer we go and the worse the oil price gets dan, thank you appreciate it. You bet. We have some breaking news on the Small Business administration kate rogers with the details kate hi, kelly we are learning of some new issues with the Small Business administrations Economic Injury Disaster Loan Program applications nearly 8,000 businesses were notified that the information may have been potentially exposed to other applicants within the sba portal. This is a program that businesses apply directly with the sba for. Not the Paycheck Protection Program to work with the big banks. An official told cnbc that personal identifiable information of a limited number of Economic Injury disaster loan apply kanlts was potentially exposed to other applicants on the sba loan application site. We addressed the issue and relaunched the application portal the sba notified potentially impacted individuals and offered them one year of free credit monitoring you had to be in this portal nearly 8,000 businesses potentially impacted thes no sign of an attempt to misuse the information but they have let all of the Business Owners know and yet another bump in the road as the Program Continues the roll out thank you now lets get to stocks, catching up with that plunge in oil today. Energy is not the worst performer today. The tech sector and the nasdaq is whats this telling us joining me is Jeff Krumpelman and Mariann Montagne maryann, what do you make of the odd Market Action today . Yeah, well, just to zero in on whats taking place in oil, that is all about the forward futures contracts and we were talking about may oil. Very little trading has taken place as one of the previous speakers was saying but i would like to point out very few contracts were trading so what is the situation is right now holdings of those contracts would have to pay someone to take the oil off their hands because it is just storage available. So were looking out to the december oil futures contracts and the expectations of 32 a barrel and i think thats where a lot of producers are looking to hedge their money, their oil. And they typically hedge out 60 to 65 of the volume and various monthly contracts and thats why you are not seeing a big impact on the earnings im sorry, the prices of the Oil Producing stocks because it doesnt have a huge impact on their earnings. Yeah. So thats kind of my take. Thats a great point. You are not even looking at the Energy Sector in particular for investments. Ill come back to the places you would be looking jeff, i want your thoughts on Energy Stocks relative will to the crude price and the fact that tech is the worst sector today. Yeah. I guess to focus in on energy, we just agree that this tends to be more of a shorter term kind of Technical Trading issue here. And that, you know, you can see the way that the stocks reacted yesterday. They held up just fine and if you look at credit spreads in the Energy Sector they also have remained pretty well contained after blowing out just a little bit so not a lot of disruption there and quite frankly we dont think its big deal to the market overall and so many other areas to be invested in at this point. Energy is 2 of the s p 500. Wow. And even within the Energy Complex we have been focusing on commodities not fossil fuel oriented look at lithium. We move towards electric cars and that kind of stuff. Sure. Outside of the energy space, as well the numbers of target and starbucks and more of the consumer sector. Mariann, you have the kind of same approach. Its dr horton, cisco food service. You like the small caps here and wonder if you could explain that a little bit. The small caps are so undervalued right now and i think there was a lot of concerns going through the worst of the coronavirus numbers which is behind us now but going through the worst that things are going to survive the Smaller Companies and saw the Government Support them however, if you look at the price earnings ratio and smooth it over on a 10year basis you will see the valuations are at record lows against pure caps so we think the small caps are very, very attractive at this point in time. Even with the Energy Exposure even with the Energy Exposure i think theres some a number of factors that have been in play going against smaller caps for over a year now and it is really been the Technology Side of things. You know leading the pack large size. Yeah. And so be left and regardless of whichever sector but looking very, very attractive right now. Jeff, would you also describe a day like today as a pause in overall rally that tech has had . We talked about the nasdaqs leadership many of the outperformers in that basket. You have qualcomm, for instance, as within of the names you like. Are there other tech names on the list so yeah i mean, we do like other names and recently added the microsoft. We have plunk and salesforce and other stocks we think are quite attractive and we think the last couple of days are not unexpected at all. After a twoweek run of the market being up 28 , and that first phase recovery rally, we really expected some kind of retrenchment and our view has been hold your ground and upgrade. This is not the time to be heroic have a nice plan and the incremental trade might be to fade the names running hard that are lower quality, a little more cyclical and trade up into higher names. Jeff, im thinking about the stat that the Energy Sectors just 2 of the s p 500 what is your bette, going to 0 or 10 you know, neither one i think it would gravitate towards the 10 but maybe 5 is where i think we would be so you get a bounce here but its not a secular growth sector for sure. Fascinating these crises have a way of accelerating the future and you wonder if thats a pocket to take place thank you both appreciate it today. Thank you. Thank you. Talking about the markets. Coming up, three states are laying out the plans for gradually reopening their economies in the next few days well speak with a member of the houses open America Committee if the states are moving too fast. Now negative 100 bucks a barrel is possible hell join us ahead. The country needs more Health Care Workers and there are many out thereut b sidelined. Well tell you why as the exchange continues. At t knows you have a lot of things on your mind. Staying connected shouldnt be one of them. Thats why were offering contactless delivery and setup on all devices. And for those experiencing Financial Hardship due to this crisis, well work with you to keep your service up and running. Hi because at at t, were always committed to keeping you connected. The debate over whether to open the economy is popping up some states opening up as soon as this week joining me is representative mchenry of north carolina, selected by President Trump to serve on the White House Task force to reopen the economy. Welcome. Good to have you are people going too quickly here well, i think some states are moving too quickly and others are moving too slowly. I think we have to acknowledge that this is a Global Pandemic but we need a regional, state and local response to how we reopen our economy and how we measure the Public Health and the economic tradeoffs that has to be made in order to reopen our economy. I think that is going to be on each state to make those decisions. Thats where the police power within our federal system resides and i think states need to make the decisions for themselves the president set out a strong metric for each state to measure those. Its great wisdom in what he outlined. Who do you think is moving too slowly looking at certain states largely less affected you can see states in the central part of our country that have been less affected than those on the coast. And so, each state needs to make that determination for themselves right and thats why i know that the decision is delegated but at the same time so we have georgia saying to start in a couples days time would you say theyre going too quickly or not who are we to say if its up to th them georgias not met any of the metrics for the first congressman, ill try one more time can you hear me, congressman mchenry . Go ahead. Outlined. Just restart your thought, sir. Georgia has not met any of the criteria and then continue that thought. Sure. And the president s put the metrics out and the people of georgia are going to be able to hold their elected official accountable for the decisions theyre making so i think having a public metric and having public data means that we have an informed electorate and people so they can reemerge in their Economic Life as they see fit. So i think judging by the president s standards hes laid out, georgias not met the metrics. Lets go over the standards what are they . I dont have the list in front of me but its basically the count, the affect on your health system, and those being the key metrics here and when you see the sort of bending of the numbers of new cases that is a key ingredient of it and very few states have seen that. Yeah. I guess to me the tricky thing is we say where we have bent that curve reopening wont that go up again and then be shut in like other parts of the world are experiencing thats right. I think thats a fair concern. And what i would say is i would rather take a few extra days in the name of Public Health than for us to drag ourselves in to more illness, more death and overwhelmed health system. Lets be measured about this, be pragmatic about it the president laid out a very good set of metrics. We have Public Information to all use for ourselves to judge whether or not its safe for us to reemerge in Economic Life. I hope that the Health Care System at better capacity now to deal with a wave than it would have been when it first happened obviously maybe they can give us comfort. People have suggested more vulnerable populations continue to quarantine more aggressively. But, you know, if we talk about a few days, what happens if people say its weeks or months still of a shutdown . Thats its some point i read about how liver transplants and chemo, it is not happening these are how do we get back to normal in that sense . Well, then that is also the regional approach. You have some Hospital Systems largely unaffected a good example in pittsburgh they have a Hospital System thats largely unaffected and so they can do some of the other procedures that have been left on the sidelines and treat patients that would be at risk a month ago or two months ago and so, that needs to be focused on the Hospital Systems and those regional decisions so were going to have 50 different approaches to this but we all need to have the same information so that we can hold our elected officials at the local and state level accountable for the decisions theyre making and so we can have our voices heard. What i dont want is all of us to hang out for all 50 states to be at an area of perfect safety. I think it would be far better to have half the states open and half the states moving more slowly than for us to have a one size fits all approach nationally. Yeah. We havent gotten into more funding for Small Businesses which looks like it might be starting to come on the way. But well leave it there for now, congressman, and thanks we appreciate it. Thank you part of the reopening America Committee. Coming up, were going to look at texas, frost bank, based down there, processed more than a years worth of the Small Business loans in just over a week the bank also bracing for fallout of the oil collapse. The ceo joins us ahead. New nursing grads are facing a roadblock getting into the field. Why next. You can watch or listen to us live on the go on the cnbc app. The exchange is back in two minutes. soft music [female vo] restaurants are our family. The cornerstone of our communities. And our family needs help. Right now theyre facing a crisis. And theyre counting on your takeout and delivery orders to help them through. Because if we dont treat restaurants like family today. They might not be around to treat us like family tomorrow. Grubhub. Together, we can help save the restaurants we love. Welcome back lets get the latest in the coronavirus pandemic over to sue herera for the headlines this hour. Thank you very much we begin, everyone, with the latest numbers confirmed coronavirus cases in canada have now risen to more than 37,000. Just over 1,700 canadians have died the virus and in italy, the death toll there rose by more than 500 bringing the total to 24,648 here at home, a majority of american voters, 58 , in favor of casting the ballots by mail in november. Thats according to a new nbc news wall street journal poll. This as more than a dozen states have postponed or changed the voting formats amid the coronavirus outbreak. New yorks attorney general james is opening an information into Charter Communications Coronavirus Response the Telecom Company continued to require some employees to report to corporate offices amid government calls for employers to allow remote work where possible 230 employees have reportedly tested positive for covid19. You can always get more on our coronavirus coverage by heading to cnbc. Com. Back to you. Sue, thank you very much. Lets talk about nurses, among the most critical workers needed right now but some are kept on the sidelines with long delays in certification tests. Rahel solomon is here with more on the story hi, kelly Health Care Workers are sorely needed Governor Cuomo asked for out of state professionals to come to help with covid19 and some grads say they want to help but facing the long delays to be certified. We spoke to a graduate in brooklyn, katelyn gray, she says her test postponed three times in march and april. We go into nursing for our own reasons but the goal is ultimately the same and that is to help people and in this case it is not only helping covidaffected patients but our fellow nurses. We hear how we get nurses desperately. It is upsetting more than frustrating. So bob waylan says that they were forced to close the Testing Facilities in march due to social distancing requirements he tells us theyre up to 80 of Testing Facilities open and trying to do to help is they administer certifications for 250 professions or tests and made pretty much all the other tests virtual to get the workers in, tested and working as soon as possible. When i asked, well, why not make the nursing tests virtual to get more people tested, he said essentially they have offered that but Public Safety, it is high stakes, Public Safety at risk and a situation to deal with in new york, Governor Cuomo is allowing recent nursing graduates to work for 180 days if the conditions are met, supervised and things like that. She is scheduled to take her test in may. Fingers crossed that she gets to sit for that test. You know, it is fascinating, rahel, because basically says we shouldnt trust the virtual test or anything or maybe fine for nurses and being too stringent about it something is wrong here. Yeah. You know, i think it depends on what the tests are when i asked give me the examples of what other certifications people are taking, they said project management 250 different professions. I think when it comes to nursing, maybe they havent worked out the kinks as far as virtual testing but how are you even social distancing people coming into the facilities and he said usually cubicle to cubicle but now every other person and trying to maintain and comply with guide loins and get people in and out as quickly as possible and as you know we sorely need it. Not just there that the testing is a big issue this season well maybe the a. C. T. And s. A. T. To adapt. Thank you so much. Coming up, Oil Futures Prices may be negative but its even worse where prices are being paid at the pipelines down south. How bad can things get how about negative 100 a barrel bullish on an airline, yes, an airline why an analyst says the amazon rally is just getting started. The two bold calls when the exchange continues. Thats why Td Ameritrade designed a firstofitskind, personalized education center. Their awardwinning content is tailored to fit your investing goals and interests. And it learns with you, so as you become smarter, so do its recommendations. So its like my streaming service. Well except now, youre binge learning. For a limited time, get up to 800 when you open and fund an account. Call 8663009417 or visit tdameritrade. Com learn. Welcome back to the exchange. The dow down 479 or 2 the nasdaq worst performer today. Dom . All right so kelly, we can see here that the dow, nasdaq and s p off 2 and may not be much but off the lowest levels of the day of trading. At the low, the s p down 96. We are down 67 right now every sector is negative real estate, energy and industrials, relative outperformers and tech, Communication Services and financials leading the lagging part of the market overall shares of dow component cocacola losing some momentum today, the soft drink maker reported profit and sales and said the pant will have a Material Impact on results Going Forward. Another dow component, ibm lower on the day, well off the worst of the session and reported revenues that were lower than the same time a year ago also withdrew the fullyear guidance netflix hairs, lower ahead of the streaming jintgiants earnis today. Its going to be a big after the bell mover to watch. Back over to you. Thank you, sir. Lets go back to oil my next guest among the first to warn last month crude could go negative and now it could get worse for more im joined by paul sanke. Paul, i mean, what i think is most interesting about the explanation here, because we heard people earlier this hour saying dont worry about oil it is a thinly traded contract the credit is okay youre saying, no, this is a real thing happening in the real world. Minus 40 to minus 60 a barrel of oilt. What do you think is going on . Simply the demand story is so epic that we have a problem of managing crude typically the industry runs on a just in time basis produce a barrel, move a barrel, refine a barrel, consume a barrel suddenly we have 35 Million Barrels a day to try to handle and it becomes impossible quite frankly and why the prices can go to almost any level it is unknown what will happen over the next month. I think the point we were making this morning is that theres another month still to come. Thats whats concerning and we have hit the extraordinary lows but out in of the woods by any means yet. Jeff currie said yesterday he thinks the peak week globally is last week and that by june you could start to be in a deficit situation again. Would you also say thats possible but would get worse before it gets better or do you have a different view . No. We were watching moerkt data because its so up to date the staggering one is india down 80 in terms of mobility i was surprised that theres not been more of an uptick in spain and italy. They have opened up slightly but the trends are extremely negative theres no sign of the uptick that you read about when you read that they were opening up slightly. Wow which doesnt bode well for here for people being eager to get out and go that said, you have a pretty bullish view on demand for crude in the back half of the year because prices are so low. The december Contract Trading around 32 is that a world that you think is going to be a reality again, people need to know there is not a constant discounting experience it has to clear at these ridiculous levels before we can get to 32 a barrel and does 32 seem doable for you . If so, is that why the equity and credit isnt more upset right now . Yeah. The debt market for that matter which is quite disconnected from the equity, the equity market for oil is much more positive than the debt market but it is notable yesterday that oil debt didnt trade down in the way that crude did it couldnt have new nevertheless held up yesterday regardless of the price. The we think the second half of the year will be strong for gasoline the most important single driver not car choice or tesla penetration, not efficiency of cars or employment but actually simply price of u. S. Gasoline really drives consumption here and so were looking far big second half that if the refiners retain discipline is huge refining profits f. The refiners retain discipline it is not a huge increase in crude demand. 30 is fair, absolutely i dont see much upside with so much inventory and capacity and by then in u. S. , as well, to shut down a couple Million Barrels a day of production here over the next literally four or five weeks. People will say dealing with a crisis like this to bet on the biggest xans but youre worried about the Biggest Oil Companies like exxonmobil and conocophillips why is that . Because the scale of losing money is epic that the bigger you are the more money you lose faster so the debt will increase massively not obviously against the more powerful Balance Sheets but absolute terms and the issue is that they dont hedge or chevron so whereas smaller are hedged for 2020 although not for 2021, the fact is that this will absolute losses and absolute deterioration of Balance Sheet for the bigger names to see the biggest deterioration of Balance Sheet over six, eight weeks. Like you said you have been met with skepticism for suggesting that conoco to merge with the likes of chevron. Tack about the possibilities of these companies being battered by this price shock. Well, you know, the first line is always that its a question of an oil company calling another one to sell itself, not the other way around although didnt quite work like that with anadarko typically deals with friendly and thats where we were coming from on the conoco idea. I think that the premium assets in the permian, guyana is a longterm highly attractive asset, those are still investable in one company wanting to buy another and a whole swath of assets, north dakota, oklahoma, not the permian in texas which is likely significantly smaller Going Forward and never really return to the glory days until the companies have been rationalized and when they are there will be less of them and really seeing unfortunately a structurally smaller u. S. Oil industry Going Forward after this disaster im afraid to say. I imagine with a Government Support is too overwhelming of a move paul, great to hear your views thank you. Hope to check back with you soon. Well, the june contract which are rolling over to after today is at session lows, a second one on the screen there and trading under 10 a barrel this is the one supposed to be the real price quote unquote with the losses across the board, it is not all bad according to my next guess joining us with ideas on the market is John Spallanzani i hope everybodys safe, healthy and happy right now. During the crisis. Yeah i think that some of the bright spots to look forward to obviously is that, you know, a lot of the debt rates are going down the curve is being bent rather mightily right now throughout the globe. Actually so the numbers are encementally better as well as we have had some a lot of trials on the drug trial front that are going on. Theres some vaccine testing going on in the uk so thats positive and the big positive i think on the horizon is the fed meeting next weekend that few people are talking about and i think that the Forward Guidance from the fed is going to be very, very aggressive more aggressive than the market has anticipated right now. John, when bill miller was on last time he said it was a kip of once in a generation buying opportunity for stocks and that was about four days before the recent bottom. Most people are skeptical and concerned that this rally can last because its been so sharp over the last month or so. Do you guys think that was the lows of this cycle and what do you think the rally looks like and whos the leadership or who do you think investors should bet on . Well, we cant say the low is and but we think a trading range is 2400 and 2900 we will have the fed next week, warmer weather is coming thats going to help things a lot. I think that youre probably going to have a decent we had 30 rally off the lows that was a 37 retracement from the highs so back in the spanish flu the draw down about 47 so we really only 10 from that level. So we really corrected quite a bit. The positive thing is that we corrected from such a high level. The economy went into this at such a high level. The fed and the government has reacted much more quickly than they had in 2008 and thats actually another positive Going Forward. So i think that right now the market is digesting the big rally off the bottom which as you say has been met with lot of skepticism as rallies have been in the past so theres really nothing, nothing new there in terms of the earnings, i think really the earnings in 2020 are going to be kind of just kind of put aside, you know, everybodys pulling the guidance theres not a lot to go on and continuing to trade off of drug discoveries. Obviously incremental news i growing 20 year over year, which is fantastic china ease coming back online. Thats going to be another positive theres good things to look forward to were seeing a will the of value across the spectrum. Some of things were looking at is theres a will the of opportunities in credit now. Theres a lot of bonds that kind of got thrown out here were looking at some of those all right i look forward to that overall, little bit more optimistic view of whats going on with the economy. Thanks good to check in with you. Thank you coming up, congress is also set to vote on a bill to provide nor funding for the Small Business program which ran out of funds pretty fast how quickly can the new funds will made available . Well get the latest stay with us welcome back the historic plunge in Oil Prices Continue today a closing negative for the may contract the june and july contracts are sinking now as well. May is at 8 a barrel. June is two cents higher the june Contract Trading around 8 the july contract still up at 18 theres a lot more to this story. As we continue to look at the fall out,the senate is expecte to pass a bill today that would include additional funding for the Small Business program the ppp which tapped out last week my next sges on the ground frost bank hebs secure 3 billion in loan approvals. Thats more than a years worth of loans now they have the oil collapse to deal with as well theyre not the solution they are the problem instead of everybody being able to get access, every one is pointing fingers about who got something and who didnt i really disagree with the fact that it was not an equally system 82 of our prooiapprovals went loans of 350,000 or less. Those are employers of 85 people or less. We just focused on getting the apps processed and not any focus on doing big deals or special deals. Sure. What youwould you say are the industries that youre seeing a lot of demand . What kind of people were getting this money the first the highest ones were Service Level companies, professional firms i think restaurants were down on the list im not sure they are in the top five second was health care that was really important for every one today. Thats sort of what we saw people asked about energy. Did you see a lot of energy companies. Wow what happens now the president this morning tweeted there will be support for this industry. He said its too important for america to fail. We spoke with a guest who said it will never be as big as it was during the past decade how would that affect your bank and your region . The Energy Business is definitely under pressure. I havent heard any positive optimism right now there are three o problems we got to deal with its the medical problem with covid19 we got to start burning fuel, using inventory. Theres no capital available thats going to draw out sochl that cap p that capital if this goes on too long, youll see it decline in one to two years it could go up and we could have a real recession at that time how much more funding would you like to see . For the ppp yeah. 250 billion. Maybe as a start and well see. The demand might be in the trillions. Thank you so much for joining me absolutely. Coming up, the may crude contract closing in next half hour cant miss another historic day in the energy markets. Our eangbrki News Coverage continues after this short break. Stay with us ever since weve gone mobile on the now platform, somethings gotten into the office. I hear you. Feels like theres no barriers between departments now. Servicenow. The smarter way to workflow. Since 1926, nationwide weve been there in person, during trying times. Today, being on your side means staying home. Nationwide office of customer advocacy. But we can still support you and the heroes who are with you. Were giving refunds on Auto Insurance premiums, assisting customers with Financial Hardships, and our foundation is contributing millions of dollars to charities helping with covid19 relief. Keeping our promise to be on your side. Woi felt completely helpless. Hed online. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Welcome bark, everybody to our breaking News Coverage welcome to power lunch welcome to my kitchen. Markets are under pressure the dow down more than 500 points another ugly day for oil, maybe not quite as shocking as yesterday. The may contract closed at negative 37 you see its up 46. That one tanking today