Transcripts For CNBC Closing Bell 20240712

They missed estimates by a wide margin the expectation was for over 800,000. And tech stocks are broadly underperforming to day, unwinding yesterdays gains. Amazon, apple, facebook, and microsoft all heading lower. 59 minutes after the session and were down 2 for those names. Power play. Pete . 5 for the s p 500 lets get to the president s diagnosis and impact it could have on a broad range of issues. Were looking at the potential impact on stimulus talks meg has the details on testing at the white house mike santoli tracking what it means for the market lets begin with what we know surrounding the president at this hour. Yeah. What we know is this diagnosis is now upended the president ial campaign a month out from election day the president s Campaign Team put out a statement earlier today saying that all previously scheduled events that involved the president of the United States have now been canceled. What theyre saying is that theyre going to maybe temporarily postpone some of those. There is the possibility of moving some of them virtual or having the Vice President step in hohn a case by case basis to handle some of the events. So all of that in terms of the president s campaign up in the air right now. Defending the decision by the White House Team to allow the president to travel to new jersey yesterday for a fundraiser even though they knew that hope hicks, a close president ial aide tested positive before that trip departed heres what she had to say it was deemed safe for the president to go. He socially distanced. It was an outdoor event and deemed safe by white house operations meanwhile, Vice President biden is continuing his campaign he ush youd a statement earlier today offering thoughts to the president and first lady on their positive diagnosis we saw the Vice President here on his way to grand rapids, michigan, to continue campaigning today, leaving wilmington, delaware the Vice President , its not clear how much of his schedule remains as normal. But clearly sending a message here that he intends to continue on the campaign trail even as the president of the United States has been side lined back to you. What is the latest about what we know about the president s condition . His symptoms and his risk factors . What white house officials are saying is the president is experiencing mild symptoms theyre painting a picture that is engaged in calls with his white house staffers, asking for updates on the economy, issuing orders, that sort of thing but they do say he has mild symptoms and theyre not revealing any specific details about whatever treatment he might be given. Were told that the White House Medical Team is monitoring him closely. Thank you so much for that. The president s diagnosis could present challenges to the on going stimulus negotiations. We have a look at the potential impact there there is new optimism on another round of Coronavirus Relief from congress the treasury secretary and the speaker of the house talked on the phone for more than an hour this afternoon Speaker Pelosi telling the caucus that theyre working on the text of a deal so they can move quickly even though substantive differences remain majority leader steny hoyer characterizing the nature of the talks as being filled with good will hopefully those negotiations will bear fruit sooner rather than later when i say sooner rather than later, i hope that this weekend, perhaps an agreement can be reached. Now even if there is no deal with the administration, pelosi said she still wants to send awed to the airlines she plans to do that either by bringing up a stand alone bill with bipartisan support to the house floor or if they can do it, including it as part of t t comprehensive relief package she is imploring the Airline Industry to hold off on what she called devastating layoffs to give congress more time to work this out whats the expectation if that would lower the unsentive for some opposing awe broad stimulus bill to then support something that has wider measures included . Yeah. Thats a good point. We dont know at this moment one thing that was surprising is that pelosi floated the idea of bringing a stand alone bill because she has been so opposed to tackling the items individually going big is the only way to do. This the fact she would even consider that just shows the kind of pressure shes under to make sure that these layoffs dont happen airlines all trading higher at the moment. Thank you. Lets get to meg now who slooking at how coronavirus testing at the white house plays into tow days developments. Meg . Yeah, sara, we know there is rue te routine testing for anyone at the white house or might come in contact with the president which test was used . The former Campaign Manager for the Trump Campaign was on the today show this morning saying he was there on saturday and heres the testing he got. When you go to the white house, you receive the abbott lab, a 15minute test. They notify you if you test positive i was at the white house on saturday, i was notified that i did not have covid19. Again on wednesday when i was with the president i was tested plied befo immediately before seeing him. I was notified you was negative. Out of caution, i think everybody who has been around the president and the senior staff will be self isolating now abbott has two different tests that can take about 15 minutes. There is the id now which is available back in the spring and there were issues cited with potential false negatives from that test. And there is the newer test, an antigen test it uses a small cardboard device they showed it off earlier this week in the rose garden. The issue with both of the tests is theyre great because they can he will it you the results right away i talked about the id now, this were questions about going back to may and they did specify that it has High Sensitivity and specificity if used seven days after on set of symptoms guys so is what youre saying, meg, i would assume that the white house tests members of the administration all the time that there were likely negative tests or false negative tests that misled people about the positive cases here zblr it. Its entirely possible. We were talking to the doctor last hour. Of he said the issue with these point of care tests, the ones you get results so quickly is there can be false negatives we dont know what happened yet. Hopefully that will be clear experts say that tests are really great tools but theyre not the only tools you can use to ensure youre not going to get infected you need to use masks and social distancing and all of those together help you have a stronger way of protecting yourself and others. Meg, thank you so much for that lets bring in mike santoli now with more on what this means for the market mike, its been a bumpy session. It has. It is pinball going between the different headlines. I think what is important though, look at the s p 500 over the year to date it is the context in which this is happening an agitated market trying to stabilize around this trading range. Really doesnt look like a lot right here the were up still 4 , 5 off last weeks lows were around flat for the week on the s p 500 maybe slightly negative at this point. And continue to say maybe it looks a little bit like Something Like that from june and july after did you have a significant peak and pullback. Take a closer look at the s p 500 futures this week to get the overnight action that really is what a lot of the moves occur. So this right here, of course, was the announcement that they had become infected. Hook at where it stopped going down similar to where it did the overnight after the debate on tuesday. So it sort of seems like the market is decided thats where its going to make an effort to have a stand around this 3300 level. And then more broadly, Election Year pacing of stock market performance. This is the typical Election Year in blue can you saw the current year is track ago long with it however, look at the magnitude the left hand scale is the average. That is plus 4 above or below where we started the year as opposed to this year where you went up 10 and down 35 , up 60. Its a very, very different tup of year even if the lesson here is that we often do get choppy in october ahead of the election and then usually there is a Fourth Quarter rally attempt, some tension release, something we got past all that you have to have it in the back of your mund in the terms of the way the market tries to digest this possibility of election area of volatility this week sums it up. We start flat but with lots of clear up and down days and also no clear theme over the course of the week about that rotation either in or out of tech and value no. Its been very noisy on that front. Actually day to day sometimes its been complete 180 i think the revelations or the reports today that it was maybe again soft bank buying aggressively in the Options Market for big tech stocks maybe that helped the come back in the last couple of days and selling off now. That creates just an extra level perhaps of extra energy in one direction. It seems not related to the news the market is trying to sort out what it might mean there as well also, if it is seeming there might be a more decisive election result sooner than feared, who knows what that means . What does it mean on the fiscal side for interest rauts and stimulus and all the rest of it . A lot of that stuff is trying to be processed in real time. Its a lot of questions that remain unanswered. And interesting to see the dow only down as little as it is about 20 points or so. Mike, thanks weve got a news alert right now here on air bnb. We have more according to a source familiar with the companys plans, air bnb is aiming to go public in december or even a little bit earlier reuters first reporting that development not long ago of course, much of the plans rest on market conditions. But notably, the aim is to not too long after the they fetched 18 billion and that was down from the previous funding round of more than 30 billion this is reflective of the recovery weve seen from air bnb this year. Of course, this business and bookings just fell through when the pandemic hit it has really benefited from travel in a post covid19 world. Back to you. Thats really interesting lots of money out there as we have seen with the spac craze. Raising a fresh 3 billion of the float will keep an eye on any more developments there. Thank you. Well have much more throughout the next two hours on the president s diagnosis. Up next, ed mills will join us and look at the policy implications later in the show, mark mohaney. Its time you make the rules. So join the two Million People whove switched to xfinity mobile. You can choose from the latest phones or bring your own devic, and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost all on the most reliable network. So choose a data option thats right for you. Get 5g included. And save up to 400 yr on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Snifrnlt. President trump tested positive for covid19. St this as three key issues hang in the balance stimulus nominations, the Supreme Court nomination and the election pe lose ji asking airlines to hold off on furloughs. House majority leader steny hoyer says the house would be available to vote on an aid package despite a scheduled break. Lets bring in ed mills from Raymond James. Good to see you. Clearly, hopefully and everyones base case expectation that president will make a full and swift recovery, in that scenario, is there any impact on the election of having gone through this thats been the question of the day. Some want to make the case that, you know, if the president recovers as would be the hopeful outcome and theres not a big impact, maybe this is yet the next thing that we have in 2020 where it seems like a big event but it does not really change the political calculus the flip side is that it is going to remind voters of his performance related to covid19 and will there be a view that as commander in chief, your first job is to keep folks safe. If he hasnt kept himself safe, is the job he did in response to covid19 bringing that back up a month before the election . Does the change the likelihood of a stimulus deal . It went from being deaddead to just slightly dead. So the calculus is in politics whenever you want to change your mind, you need an excuse and so you dont want to view yourself as having caved and so is this the catalyst that provides that excuse is this the deal that gets done because the white house needs a victory . What we saw this afternoon as nancy pelosi sent a lower to all her colleagues outlining five areas where there is still disagreement theyre not huge does it show that republicans are going to have to come probably more to where she is for her to sign off on a deal. And with members headed home, there is no real pressure on getting a deal near term so were back to the point where in d. C. Things are impossible. Were still hoping we can flip that switch and still get a deal done its not looking good. I dont get that, ed. I feel like this provided a huge sense of urgency the president of the United States contracting covid19 is a pretty stark reminder that this pandemic is still with us and still threatens us we got a jobs report today that was a big miss it showed the number of permanent job losers up to 3. 8 Million People continue to deteriorate. All sorts of other troubling signs behind the hood like people leaving the labor force how can they not take this moment to pass trillions of dollars in relief right now on both sides i dont understand the excuse, the urgency. It is really frustrating. This is a debate that i follow that has more twists and turns and false starts and kind of premature declarations of death. What you look at is as i take a step back, theres a deal to be had here do we have individuals who want to get that deal done . What is the normal political calculus those cat lusalysts are gone. You think you have more pressure from the white house to kind of cut that deal. The president has taken a lot of executive action which took some of that pressure away. As well as how to campaign that is largely been based upon we have turned the corner economically and from a health care perspective, but with the president s diagnosis today, it really does remind us that, you know, that health and Economic Impacts are still here the problem is now were almost a month away from an election s the time is just not there and the policy differences are bigger than the money differences which makes it more difficult to get that deal done. Theres a chance but its hard ed, how important are larng large in person rallies for turnout for Trump Supporters i dont think its a huge impact on turnout. It does help in local media markets. I think its problbl probably mt important to the president , frankly. He feeds off the energy from the rallies. He is looking to project he is picking up momentum. The polls and we can debate the polls, do show him in a position where he is behind so having those rallies, having certain events and a view in this country that it is safer to be out may be despite some of the evidence contrary was going to be helpful to the political brand that hes trying to build. The without that, its a reminder of how much further that we still have to go before v covid19 is over he also has not tweeted in 14 hours which a lot of people are paying attention to. That is another way he gets his message out. Ed mills, thank you for joining us thank you we appreciate it. From Raymond James we have just under 40 minutes to go before the closing bell take a look at the markets were down across the board. The s p 500 is down. 5 . The nasdaq down 2 the nasdaq is down as much as 3 the dow is down more than 400 points earlier we definitely have come off the lows were seeing rallies in groups like energy and industrials and materials. Some of the value cyclical groups doing better. Technology weaker. Coming up, amazon detailing exactly how many employees have tested positive for the coronavirus there. Sending a message to other mega employers as well. 34 minutes left of trade the dow is down 38 points. Lets dmecheck innen the bigges market movers. The Cloud Computing Company Forecast 30 or higher annual growth over the next four years. Its been a huge winner this year, up 13 right now amazon says 19,000 of the workers have tested positive for vud ov covid19 over the past six months, less than they expected to see theyre continuing to ramp up testing and plans to be at 50,000 tests per day by next month. Amazon urging other companies to be more transparent as well about their testing data and a quick check on shares of palantir, losing steam after making the wall street debut on wednesday afternoon. Still below the first trade price of 10 per share yeah. And we Broader Markets at the moment are lower across the screen, all three of the index nasdaq the lagger down 2 . Still ahead, former fda commissioner will join us to give thoughts on the president s coronavirus diagnosis. And how long a president ial quarantine could last. Plus, well ask the ceo of Diagnostics Company quidel if the news will lead to a spike in testing demand hmms and ahhs heard incall. Hmms and ahhs heard incall. With this seal, this restaurant is committing to higher levels of cleanliness. The expertise that helps keep hospitals clean, is helping keep businesses clean too. Look for the ecolab science certified seal. Taking california for a ride. Companies like uber, lyft, doordash. Breaking state employment laws for years. Now these multibilliondollar companies wrote deceptive prop 22 to buy themselves a new law. To deny drivers the rights they deserve. No sick leave. No workers comp. No unemployment benefits. Vote no on the deceptive uber, lyft, doordash prop 22. One ride california doesnt want to take. President trump announcing that he and the first lady tested positive for the coronavirus. Heres what we know at this hour white house chief of staff mark meadows confirmed President Trump is experiencing mild symptoms of covid19 the first lady, herself, tweeted she is overall feeling good. Trumps 2020 Reelection Campaign announcing that all of the president s scheduled appearances are in the process of being moved to Virtual Events or will be temporarily canceled. Vice president pence who tested negative will resume the scheduled Campaign Events. Pence also took a call with Senior Citizens on combatting the coronavirus this afternoon in place of President Trump. That is the only item on the president s schedule today lets now get to our reporter looking at Contact Tracing among people close to the president in recent days. What is the latest there the west wing staffers that want to work on the white houses campus are being given the rapid tests in order to be able to do that. The chief of staff mark meadows said Contact Tracing began yesterday afternoon when the white house ba white house became aware that hope hicks not only tested positive for the covid19 but was also exhibiting symptoms when you look at the president s schedule in the last week, its quite busy the he participated in at least 5 Public Events at the white house. Two private fundraisers with donors one small roundtable, two large rallies in pennsylvania and minnesota. The president ial debate and a lot of travel in between dr. Scott gottlieb said if he was showing symptoms now, he was most contagious on monday or tuesday of this week and the white house will need to cast a very wide net. State Health Departments are also assisting in the tracing effort several of the cases have ties to a saturday event that took place in the white house rose garden where President Trump nominated Amy Coney Barrett to the Supreme Court. The president of the university of notre dame who you see there in the back who is giving some handshakes, they were both in attendance and they both tested positive in addition to the president and hicks. The Washington Post is reporting that judge barrett herself had the coronavirus earlier this summer. But has since recovered. She is testing negative as of this morning i think i kind of won only. Have we heard from the white house any confirmation or not about how often the president was tested last sfwheek did lak did he get a daily negative result until he zmnt. We know the president tested at least once a day. Oftentimes the tests take place before these events that happen. They say they wont give the exact timing of the tests for what they say are security reasons. The white house nominating judge barrett and there were not very many masks, in the announcement of father jenkins from notre dame, when he said he tested positive for the coronavirus, they said that they were all tested in order to go to that e they told attendees they were not safe to wear masks because they tested negative that seems to be the policy of the white house. Lots of people test negative right up until they test positive xwl time forea cnbc update with sue herrera. Hello, everybody. We have more now on the president of notre dame after testing positive notre dame president reverend john jenkins is now apologizing to the students and faculty of notre dame saying he did not act responsibly when at the white house by not wearing a mask. He is currently in isolation he said many at notre dame have given sacrifices and made big sacrifices during this pandemic and he feels he let them down. Mike lee tested positive, the hearings are set to begin on october 12th democrats are against proceeding the vicepresident ial debate next week is also going ahead as planned. An official with the Debate Commission says no changes are planned for the faceoff next wednesday in salt lake city. And Dow Jones Industrial average reporting the white house is raising objections to the f. D. A. s proposed standards for authorizing a covid19 vaccine you are up to date. Thats the news update this hour sara, back to you. Sue, thank you. Weve got just under 30 minutes left before the closing bell heres where we stand. Tech stocks are falling sharply today. Thats weighing on the nasdaq. Its down 1. 75 . Off the lows of 3 lower. Russell 2000 is higher small caps doing well. You have some of the value trades like energy and industrials, materials, some of the regional banks doing well today. There is technology. Its deep in the red were going to discuss tech, the outlook for the sector, how washington factors in here with rbcs mark mohaney next on closingel bl. First up is this exquisite bowl of french onion dip. Im going to start the bidding at 5. Thank you, sir. Looking for 6. 6 over there do i hear 7 . 7 in the front 7 going once. Going twice. Sold to the onion lover in the front row next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowedout loaf of sourdough bread. Dont get mad get e trade and get more than just trading investing. Banking. Guidance. Technology, biggest sector loser in it todays session. Its been a volatile one all the big tech stocks are down more than 1 the theyre also down for the week looking at the Weekly Performance by. 3 lets bring in mark mohaney. Follows the continuing bumps here from techs straight shot up basically from march until september. Has anything about some of the Mega Cap Technology stocks changed in your view i think we probably have had a healthy correction over the last month, month and a of that that was probably necessary too. And then secondly, depending on where we are in terms of the covid19 cycle, to the extent that covid19 risk on, youll see certain names outperform others there are covid19 winners year to date. That includes amazon and shopify and flicnetflix. Those stocks should outperform what about from a valuation perspective . Which ones have seen, do you think good enough shakeouts where its appealing entry points i dont think weve had had a dramatic enough correction in some of the biggest names to really make them back up the truck entry prices we havent seen that yet i think we need a little more of a pullback i think valuations on the best franchises in the space, google, facebook, amazon, i think theyre very reasonable. I wouldnt say that theyre fire sale prices yet. Mark, in terms of advertising versus subscription base models, i guess we think of things like rok as the new era of television and peacock as well. Are they in the bracket of companies struggling at the moment roku is kind of in the middle so what is happening is you have accelerated growth in streaming, kind of across the country and our world. If youre supporting ad, we see brand marketers pull back materially for a couple Different Reasons this year. Social unrest and covid19 and so thats going to be slower to come back so the companies that like roku are playing on both of those, the fundamentals are checkered until were really through the covid19 crisis. That could be another six months sefeveryone is trying to fige out the election risk. How do you think which administration is friendlier towards the big cap tech stocks given that there is still discussion about regulating them and potentially breaking them up i think that is the right setup. I think if you look across all stocks, the negative here is potential rise in Corporate Tax rates. Negative for Corporate America but if you look just at the tech sector and avoid that issue, the key differentiating issues are not that material when it could mz to big tech regulation, you think an incoming and Democratic Administration is harder regulatory issues on large Companies Like big tech. We have a situation here where the Current Administration is already filing suit against the Big Tech Companies and a second one within the next couple of weeks. Its hard to see a dramatic dufrns between preside difference between President Trump and biden. I think theyll be similarly skeptical. Which is your top pick amazon would be of the number one pick with a long term perspective if you want go near term and think about between now and enof the year, especially live as it increasingly becomes clear that covid19 continues are likely to drag on longer than we want, amazon is certainly the best position for that the you have seen acceleration in the cloud business. The retail business. Also the advertising businesses. The only ad platform that has not seen a slowdown in the ad Revenue Growth theyre the most solid play between now and the end of the year great to see you as always. Thank you for joining us thanks. After the break, a closer look at what todays stimulus news means for the airlines and what is behind teslas intraday tumble those stories and mu me ne xtchor you cant predict the future. But a resilient business can be ready for it. A Digital Foundation from vmware helps you redefine whats possible. Now. From the hospital shifting to remote patient care in just 48 hours. To the university moving hundreds of apps quickly to the cloud. Or the City Government Going Digital to keep Critical Services running. You are creating the future on the fly. And we are helping you do it. Vmware. Realize whats possible. Good job, michael does. Ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our financial futures. Keeping your oysters growing while keeping your business growing has you swamped. you need to hire i need indeed indeed you do. The moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. Claim your seventyfivedollar credit when you post your first job at indeed. Com promo hey, son no dad, its a video call. You got to move the phone in front of you like. Like its a mirror, dad. You know . Alright, okay. Hows that . Is that how you hold a mirror . [ding] power e trade gives you an awardwinning mobile app with powerful, easytouse tools and interactive charts to give you an edge, 24 7 support when you need it the most plus 0 commissions for online u. S. Listed stocks. Dont get mad. Get e trade and start trading today. 14 minutes left in the trading day. Were now in the market zone. Mike santoli here to break down the crucial moments of the trading day. Very good afternoon to you, nancy. Lets kick things off with the Broader Market President Trump tested positive for coronavirus. Major averages higher for the week the dow on track for the first weekly gain in five days thats not true. Were do we we were. 3 on the s p 500 not significant declines of course down. 3 as we stand on the s p 500. I guess that actually paints a good picture to start the discussion off this week were ending flat but a lot of volatility during the course of the week theyre true to form the reputation well earned is of some jumpy markets not even in just Election Years. But what is fascinating about the action today is outside of that quick reflex selloff overnight upon the news of President Trumps vud infection, we have seen some sorting out of the market in terms winners and losers over the course of the day. Its one of those days where very large cap Growth Stocks are weighing on the indices. Of the average s p 500 stock up is Consumer Discretionary stocks outside of amazon. Theyre up industrials are up its actually interesting. Even with mediocre add best jobs numbers where it is more economically cyclical stocks that are working is that an election calculus is that just about rising odds for some fiscal deal before the election or new administration who knows . That is the message today of the markets. It is a kind of who knows stocks are up, industrials, so many questions not a lot of answers about obviously the president and his Health Condition and what that could mean for the economy and for the virus and for stimulus a lot of things that impact the markets. How you are digesting it all what moves if anything nu are you making thank you todays movement is a little bit of everything. But not, i cant you cant zufr a theme as mike said. What i taken couragement from is despite what weve been through and are going through, are the consumer is in pretty decent shape. Poverty rate at historical lows. Savings High Consumer confidence numbers were great. And corporations are in good shape. The pmis, despite a little pullback this last month in september, they are very positive for the overall economy. And pmis are highly correlated to corporate profits so what weve done is kept our overweight to technology which is growth at a reasonable price, not groenl at any price. And then we added in a barbell of overweight to health care with he have overweight to Consumer Discretionary and weaver been adding the past few months the that will put us in good shape through the end of the year we renewed our hedge who knows with this volatility and the potential stretched out election how long the market volatility will continue nancy, that kind of outlook particularly when you mention the economy makes it sound like you should be going heavily into some of those cyclical stocks that have underperformed theyre a lot cheaper than so much of the market if youre constructive on the economy. Yeah. Agreed thats what weve done with the industrial and transport space so were overweight fedex and ups and have been for quite some time weve added names like fasenol and tool works we have some other exposure in the space through 3m and raytheon technologies. Why not more focus, mike, on the jobs report this morning which was a miss and had had a lot of troubling trends beneath the surface about the pace of the economy and the pace at which were going to gain back jobs we gained back half of them. That is a deep hole. On one level the massive numbers flow in and out of the labor market they made it tough to key off of any one report i dont disagree with the take people are locking for work in lower numbers. I dont know that is the reason that the markets are really reacting to that it seems hike it is all about what comes next, whether the talk of a fiscal stimulus deal i mean bond yields are up today. St there has been actually selling pressure on treasuries and it must all be kind of seeing what is on the come not to say that todays jobs number catalyzed some motivation for a bigger fiscal deal but just in general, reading the probabilities as theyre now setting up seems to be moving more in the direction of getting some help whereas there also is, you know, as nancy saying, there is traction in certain partsst economy. Housing market and housing stocks reliably so auto stocks are up today and i do think that, you know, on the manufacturing side, youre just seeing that basic kind of early cycle spring back effect or maybe just a stimulus addicted market. And perhaps the chances are rising of that as you said earlier. Speaking of that, lets hit Airline Stocks they stage a big come back this afternoon on news of stimulus hopes. Phil lebeau has details. What do we know, phil . We know that Speaker Pelosi knows that airline aid is eminent. Thats when you saw the Airline Stocks move substantially heuer. They were down 2 , 3 and bthen beam, that came out and they moved higher on the day. Lets be clear the two airlines that are most impacted by these furlough notice thats have gone out so far are american and united. There has to be aid quickly. This cant be three weeks from now. We have aid nor you. It has to be soon as in a matter of days. Also delta and southwest, theyre not laying off anybody or furloughing anybody right now. They also would benefit if there was an aid package that would award 20 billion to cover payroll through march, guys. Phil lebeau, thank you. Well await official word on that nancy, are you a buyer of new of the airlines since there is political will from both sides to guf more money to the air Monica Lewinsky . And im glad there is i think its high time we dont own the airlines. We rely on dividends the we play the transports through some of the names i mention all right like fedex and ups. But i do think for other investors that thr is is an interesting time to initiate a position the stocks have not done very much they bounce back and pull back but i think in here youre starting to see visibility people are returning to travel and i you this well continue to see more of that in the coming months phil, also still with us, lets move on to tesla that is obviously significantly under pressure as we mentioned earlier. Whats the key reason for that well, i think went down with the market at the beginning. And while these numbers were better than expected in terms of q3 deliveries, there is nothing in here that made you say, wow, thats a huge surprise they deliver just under 140,000 vehicles in the third quarter. The estimate was for i think 136,500. Look, they have to have a big Fourth Quarter irif theyre going to hit guidance of delivering a half million vehicles st look, they come in at 480,000. I dont think its going to send everybody running for the hills when they report that at the beginning of next year keep in mind, 89 of the vehicles they dlufelivered wereo 38 and y they dont break down the models nor do they break down how many were in china versus in the United States. Obviously, they have a plant in shanghai that gets greater attention. The focus for me, tesla investors is now turn to the q3 financials which will come out eer eeshlg at the eand what they really meant in terms of profitability. So its not that big a move. When we have the fundamentals its a little more of a challenge. That is a market cap so that is roughly where it is and the focus is on how many cars are delivered and will they get to this half a million target set out a year ago. Are they going to be completely saving the world you and theyre doing whatever big picture ventures like the million. And this year which there is no sign of. Right . So all these things i think kind of go from the very generally and the big picture in the long term to the here and now they can sustain a 400 billion evaluation the nasdaq is testing amazon, netflix, nvidia, all of the darlings of the market any of those momentum names do you like best . Yeah. I would be adding microsoft on weakness gaming, cloud is growing really strongly. And ranked very high in all the cio reports. That i read through. And then there is just the 365 and teams aspect that is also compelling the stock is trading at a hefty kind of 35 times multiple. And they grow the dividend even though the yield is modest at this point due to price appreciation s in our 12 best ideas portfolio. I continue to like it. With three minutes left energy got to the pount where theyre so oversold and neglected. The contrarian trade and a couple of others because there had been a strong down side momentum for a while right now building up. So i dont know exactly what to make of it except that you in general are going from the huge growth winners today of the past couple years money flowing out of that into some of the lagger areas if you believe that there is some kind of i wouldnt try to write the story about what exactly is driving energy. And a move that is like 2 the value stocks are higher tlaen are industrials. A little leg lower here. It could be a lot worse if you look at the action later today also can you imagine it being a little worse ahead of a weekend where we have a little bit of a, you know unpredictable news cycle more than 21 advancing to declining volume on the New York Stock Exchange so that shows you that its sort of coming out of the few and into the many so to speak with the big cap index names on the down side. Then take a hook at stocks versus bonds this week the tlts, long term treasury etf, you see weakness. That means longer term treasury yields going up as we have a lot of this noise on the many. Acro front and stocks, that doesnt look like the correct week to date Stock Performance there. But stocks are basically outperforming bonds no matter what and then the voluatility index, weve been on guard and bracing and clinching up ahead of the elections. There is not a lot of shock value. It is up above 27. But this is not a very big move. Of the markets already been expecting a lot of jumpiness thank you so much for that as we approach the close. Were down more than 2 on the nasdaq negative territory small caps outperforming the dow is down 0. 4 116 points the low was 434. The were well off the lows. Cyclicals are doing well industrials top. Energy secretary top despite oils 4 slide technology, Communication Services bo services boenl down services both down in and around 2 or more gold down half a percent which is a negative week dollar is flat today at the close, sayer yash sara, r on the s p 500 we did slip in the final moments of trade the nasdaq is down 2. 2 . That wraps up the week. We did break a four week losing streak for stocks. Welcome back, everyone, to closing bell. Im sara eisen mike santoli, take a look at how we finished up the day on wall street saw awe little tick down into the close. As you can see from the earlier session, we were down more than 400 points that was digesting worse than expected jobs report and, of course, news that President Trump and his wife first lady have contracted covid19 the s p 500 down 1 in the close. It was a mixed picture for stocks you saw strength in value groups and cyclical groups. Weakness in a lot of the tech names. All the faang stocks were down thanks in part to the regional banks and the other groups tied to the economy President Trump announcing overnight he and the first lady tested positive for the coronavirus. Heres what we know at this hour the white house chief of staff confirming President Trump is currently experiencing mild symptoms of covid19 and first lady sweeted she overall feeling good trumps 2020 Reelection Campaign announcing to day that all of the president s upcoming paernss are in the process of being moved to Virtual Events or temporarily canceled Vice President pence who tested negative will resume his scheduled Campaign Events. The president ial debate is still on for next wednesday. No changes are planned for the faceoff as of now were going to have much p more on the latest developments coming up in a few minutes lets talk about this market close. Nancy is still with us joining the conversation is sarah malick ill send it to you, mike. With so many uncertainties out there, the dow only fell 134 points nasdaq got hit harder. It could have been a lot worse keep in mind that market doesnt like uncertainty we have an election and stimulus talks in the air and the correction of the economy and the leadership of this country the market doesnt like uncertainty. Theyve been focused on anything but the uncertainties for quite some time. This is not a market that is going higher didnt think anything was of a challenging nature coming at it. It was braced and has been braced for a lot of these possibilities. Im not saying specific possibilities. Lets be honest. For six or seven months, the trading algorithms are programmed for the key words President Trump tested positive for covid19 i dont mean to say its not an issue. He was trying to handicap the election possibilities and project for policy i think its more of the same of the process that is being chewed through by the markets on day like today a lot of uncertainties. If we did get a stimulus bill, would that outweigh the risks to equities the stimulus bill would be a positive we think that would add more certainty to growth in the Fourth Quarter in the meantime, thats no the in our expectations. We think bumpy road continues forrest of this year because of that push and pull over the stimulus bill. The unemployment numbers were seeing are really showing that shape of the recovery is changing growth is slowing. And then were going have volume silt around the election but we think that investors will likely buy on a dip. There is a lot of cash on the sidelines. The good news is going into 2021, well have hopes for a vaccine. Well have positive earning rez visions and also a rate. That is all good for equity over the medium to longer term. Nancy, you mentioned that you are positive how dependent is it on getting more relief . Not if you look globally, youre seeing very strong expansion around the globe you know, we might be returning to global synchronized growth like we had in 2017. And i think that stocks are trading on liquidity right now sara just mentioned. But also were getting improving fundamentals so i expect the choppiness to continue in the stock market i do think we get a rally in december and then the first half of the year. Were seeing growth. We referred to it as a stair Step Recovery not a v. I think were just flat lining a little bit right now the not minimizing the jobs disappointment at all. But we did see a lowering of the average Hourly Earnings and that may be an indication that the lower income cohort jobs are coming back. That will be good. Sara, what did you make of the outperformance of the russell today . We like small caps here wecht do expect improving fundamentals we think growth will be more moderate in the larger cap space, we s l still like quality growth. Were looking in the cheaper spaces such as small caps. There are interesting names such as Pen National Gaming and also if talks continue Domestic Companies can be more protected from those traud talks small caps we think could perform if here as a catchup trade. Overall, in a larger cap space, were on to quality growth because of that moderate economic recovery that were starting to see especially with those unemployment numbers that we saw today yeah. Mike, round out the Key Highlights of the jobs dwrat that we got day as far as what is most important for the market and as we look to what happens next private sector job growth is not that far off of what the forecast was so the down side to the large degree came in public sector, government jobs being disappointing. You saw awe step down in Labor Force Participation which was not, i think, in the forecast necessarily. So that was part of the explanation for the Unemployment Rate decline the way it did. So we were expecting a deceleration in terms of the monthly pace of job growth i think there is unusual amounts of noise in the month to month at this stage because weve had this massive shock and so Much Movement between temporary and permanent unemployment but that was another element of the disappointment is how many of the people without jobs were categorized as permanent so it paints a picture of a long road ahead were going to see if this is the best we can do it will be a slow and halting recovery or if in fact you can get jumpstarted in some way you about further policy measures. Sara, youre attracted to dividend stocks. Which names in particular . The dif tend stocks we like, we think theyre looking cheap in a world where it is really hard to find yield, dif tend payers looking cheap to us areas such as Home Improvement we like lowes this is in the sweet spot of only having a nice yield and also Home Improvement as people buy more homes, rates stay low, remodel homes. United health care looks interesting to us. Those are a couple names that are interesting and that is a category we think is cheap and should recover as rates stay low for a number of years. I think the dividend story this year is robust. We saw pepsi increase the dividend a lot of the stocks we own increased dividends over the last two quarters. The so we still like a number of the Consumer Discretionary names like starbucks, home poe we also own lowes, d. R. Horton. And then weve been adding as i you mention to industrials and in technology, weve added a few names in the space like lahm and then added to our Underlying Holdings that we help for a long time but we also have been net sellers in the group as the stocks appreciated quite nicely like apple in recent months. I think this market is creating opportunities for investors that feel like they missed out after we got the correction that we just went through. If we get a stimulus bill, clearly net everyone thinks that will be positive what do we think it would do with the collar . The dollars correlation in a negative way with equities is fairly strong in the short term. Xw but, you know, i think academically, it would be a boost to the dollar. They are not fixed pt so its not always the case that stock market needs and wants a weak dollar to perform they need and want that if were trading off of low relative yields and the nakt we have a high liquidity environment, et cetera you know, we saw the reflags phases in phases in 2017 of i dont think there is a good way to create that choreography in advance and know hows to going to react i keep thinking about the jobs report. Some of the more permanent aspects of it, nancy i get that you have an upbeat view on the recovery but stats today like 3. 8 Million People now classifying their out of a job permanently the fact that Labor Force Participation rate for women dropped pretty substantially not having full school and having to take care of your kid. How do you factor in the potentially long term scars . Does ut shape the outlook, the Economic Outlook for you yeah. Im really troubled by the women numbers. I saw your tweet earlier today i retweeted it i think its very troubling. Im working on my column for usa today on why women need tore more engaged in in their Financial Lives because this is the kind of thing that happens and they need to be prepared i do think that ppp resurgence, its critical for many of the Small Business owners who are women and also employees who are women. So i do think this is a social issue that will impact our economy and our country for a long time. And thats something that i think should be above politics tell us about the opportunities that you are seeing overseas. The clearly, some of the virus data in europe is worrying but the Economic Data hasnt turned south in the last couple weeks. Do you find european equities attractive it doesnt really fit for our outlook. Were more interested in china which has actually dealt relatively well with the virus and had a proper v shaped recovery and also from trade talks and going brazil which did not deal with with the crisis we think brazil could be a nice catchup trade. Japan san ar japan is an area that is for us. We think japan is an area of the market that has more growth than sometimes people realize they tend to be underrated it is also defensive when people become nervous like they are now. Basically everywhere but europe mike, im looking at the Weekly Performance here. Its incredible that stocks ended the week higher. One question youre going to get this weekend is so on a week where we had had the most chaotic debates anyone has ever seen for president , the president and first lady were diagnosed with covid19. A number of economic weak spots or miss onz the Economic Data from personal income to manufacturing to jobs and we get a gain for stocks. It seemed like that kikind of r peoples expectation ands positioning and basically a little more of an upside buy just on a rebound basis after youre down four weeks in a row. All the headlines you mentioned are in in the category of trying to hash these things out in other words, we came into this week with the betting markets getting the probability leaning in the direction of a joe biden win. In if anything, maybe there is a decisive result. The other thing is that elections in themselves typically do not make or break a market or an economic cycle. I think despite the volatility that, is recognized by most people theyre going to say, you no he what well be up in the Fourth Quarter and next year. The market is not necessarily unternlizing every twist of the story. Theyre trying to cut to the chase. You mentioned preference for the industrials. Are there any other sectors that youre looking at closely trying to warm up to . I think we lost nancys shot sara, same kind of question to you. They started to perform. Others havent like the financials are you attracted to any of those . For overall cyclicals to perform, were looking for higher Interest Rates and inflation. There are some interesting areas you want to look for companies but they have a solid balance sheet, no debt due until 2024. Financials are less interesting because of the Interest Rate issue. We would be watching to see the election if the democrats win and we see more stimulus, more spending, that could help certain areas of the market. But we are looking more for areas like climate change, industrials would be positive because of the increased spending and then moving away from Financials Due to more regulations and moving away from health care because of the public pricing and drug pricing pressure looking across the safe havens where you look during times of nervousness, sara, treasuries, the dollar, gold, not all of them have been exactly lined up with some of the moves back in stocks lately. Where you would go as a safe haven to protect yourself against more volatility . We tend to look more for yields weve been talking about dividend payers. Much companies which have a strong yield that they can increase over time so those tend to be safe havens. Will going around the world, this is where japan starts to look more interesting. It tends to be more of a defensive play we do think that industrials we mention philadelphia its a democratic sweep, its positive for industrials. Even if republicans win, this could be more stimulus when that does come into play, it is positive for the sector. We talked about financials, energy, you know, most likely other areas such as those we think would be negative in most cases. Sara and nancy, thank you so much for joining us. Great to see you both. We have breaking news lets get to Shepard Smith hello we have new nflinformation of te president in the white house this afternoon he had a pcr confirmation as you know the president tested positive for covid19 as has the first lady and after the diagnosis, quoting from the doctor now, as a precautionary measure, he received a single eight gram dose of an antibody cocktail a cocktail of antibodies to try to boost his immune system it goes on, he completed the infusion without incident to the infusion, zinc and vitamin d and an aspirin the president is fatigued and in good spirits hes being ee val wait bid a team of experts and well be making recommendations to the president and first lady in regards to the next steps. First lady remains well with only a mild cough and a headache and a reminder of the first family are well and tested negative for sars covid19 today. Our man at the white house is there now. What have you heard there . Yeah. Im actually not at the white house. But here in washington, d. C. , were looking at the same letter that youre looking at right now. I think the important line here is from the doctors saying that hes working with a team of experts and together well be making recommendations to the president and the first lady in regard to best next best steps so it sounds like the physicians already have, if if you read between the lines here, a plan in mind of what to do next theyre going to make that decision with the president and the first lady theyre going to make new recommendations to them at some point shortly. Well wait and see what those recommendations are. Meanwhile, ive been talking with a former Senior Administration official today about some of the back and forth over exactly why the president decided to go to new jersey yesterday even though a member of his close staff had tested positive at that point we saw the White House Press secretary on the driveway earlier today saying that that was deemed safe by white house operations the but what im told is the white house operations in the chain of command reports directly to mark meadows that would have been mark meadows call, not white house operations to proceed with that trip so there is a little bit of finger pointing here on who did what but that would have been according to people who are familiar with this process that, would have been a chief of staff call regarding how the president s feeling, we have just this one statement from the doctor saying hes in good spirits hes fatigued. We heard from a number of foam day who spoke with him Lindsey Graham said he spoke with him on a call i believe Mitch Mcconnell said he spoke with him as well. What you have heard from those who have been in contact with the president . It looks like a couple of foam day mark meadows said he talked about the economy around 8 00 a. M. This morning. So we have, you know, a number of officials who say theyve been in contact with the president. I is issuing direct ufz to staffers we have not seen the typical pattern of president ial communication here this is an atypical day by any measure. You imagine if the president was feeling communicative he would share some details on his status we havent seen much of anything on that front. Well wait and see if the president is able to share more information now about his status amen, thank you very much the president is said to be fatigued but in good spirits hes taking this cocktail andy body cocktail. And we have more information on what this is and how it might be helping the president. What can you tell us its pretty remarkable to hear that the president is receiving this therapy this is not ab approved drug for covid19 but we just saw the first data from an early Clinical Trial on this drug. This is two antibodies put together essentially, what it does is it takes one antibody from somebody who actually recovered from covid19 and an antibody that they developed in the labs these are the immune response that is generated when somebody encounters the virus and giving that to the president as a drug. In the trial results that they just released last week, they tested this in 275 people. It was in a setting that the prison president is in it showed in that trial that it did reduce the load of the virus and shorten the time to recovery from symptoms. And it may also have prevented people from having to get so sick they go to the hospital however, the numbers were pretty small in this trial. This is a phase onetwo trial. Its an experimental drug. They could make it available under exceptional circumstances, not saying anything about the president or the first lady themselves but we actually do know that the president and the ceo of rgeneron have known each other for a long time. He refers to the ceo as lenny. We heard him do that at the white house before very remarkable to see this drug being used along with a number of others we saw in the memo that just came out meg, stay with us new information from nbc news. Nbc news is now reporting that the president is also running what the sources are describing as a low grade temperature so some of the symptoms are now appearing. The president according to the reporting of nbc news sources has a low temperature. Hes fatigued fwhut good spirits. Lets get to dr. Scott gottlieb who is with us now dr. Gottlieb, meg talks of how remarkable it is that this particular cocktail may be going to the president when it hasnt even yet gone to fauz three trials what can you tell us look, it is a question of whether or not they were going to use an antibody drug or remdesivir it would have been used off label. The emergency authorization use of the drug is for hospitalized patients now i would have thought that they would use remdesivir because there is more data around that drug at this point and we are seeing that drug being used earlier and earlier in the disease so using it in an outpatient setting in a high profile individual is not that far from where the drug is currently being used the regenron product which has a lot of promise and ive been bullish on the antibody drugs, its still very early. We have very early data on that drug i think from a clinical standpoint, if you have one shot to provide herapy, you want to provide the therapy that you have more certainty around and that is remdesivir at this point. They really only have one opportunity right now to try to get a drug in that will mean that the president is continuing to progress. Dr. Gottlieb, a little more here the president in addition to this ap antibody cocktail. He is also taking zinc, a daily aspirin and melatonin. How would that affect a covid19 positive person . Well, there is studies going on looking at one dreg and whether or not i could have a benefit. I think its very speculative. I would tend to discount whether or not there is a treatment effect there if youre low on vut minute d, sut good you want to be on vitamin d prior to getting sick. I dont think inform the drugs are problematic or could cause harm i just dont know that theyre going to provide a treatment effect in this setting this morning when people were speculating whether or not the president would receive active therapy, the discussion was around whether or not they would use the drug remdesivir which is probably active but weekly active its not a home run drug they would try one of the early experimental antibodies. They have gone the route of the antibody drug and hopefully it will provide benefit to the president. Im optimistic about the drugs but, you know, my assumption was that they would use remdesivir you have more certainty that youre going to get probably some benefit from that drug whereas with the regenron drug, you may get a lot of benefit but you dont know against this memo from the office of the president from his doctor and sent out from the press secretary. I want to read one line from the doctor and ask you if there is anything to be read into this. He is being evaluated by a team of experts and together well be making recommendations to the president and the first lady in regards to the next best steps anything i think thats standard medical talk there is probably other things they can contemplate to provide support of care and benefit to the president. I dont think there is any reason to iner if that there is any dramatic change in the course from what we knew last night. I wouldnt read too much into that thauction the president has been sid to be in very good spirits ut is very unusual not to hear from him on twitter. Isnt it right yeah, absolutely thats one of the points that i keep returning to. If the president had a mess anl he wanted to get out, we know that the vehicle he choose noorz is twitter he has not done that so far. The president is not feeling up to it or he doesnt have a message that he wants to put out to the American People just yet. As he grapples with this situation and tries to figure out what to make of it there is a clear distinction in this letter which was a messaging. The difference is between the president and first lady the letter says that as of this afternoon the president remains fatigued fwh fatigued but in good spirits in contrast to the first lady, she remains well with only a muld cough and headache. Theyre not saying that president of the United States remains well though in this letter i think that word choice is potentially significant. There seems to be a diverging course here between the experience that the first lady is having and the experience that the president is having the at least if you look at what the president is saying and what the white house is saying about each of the two individuals. Working strictly from the memo from the physician to the president. The i would agree with you we talk about covid19 patients are more vulnerable if theyre in a number of categories, older people the president is 74. And those those who face weight issues. The president is clinically obese. How much impact do those two matters have and are there other areas that we should be focusing on well, the single biggest predictor of clinical course is age. C comorbidity occurs with age age is the single biggest predictor. He is 74 that is old relative to what were seeing with the outcomes with covid19. They have improved substantially. But when you look at the data associated with 74yearolds, there are some concerning statistics so were going to the president is going to obviously get the best care available. Doctor, thank you back to meg. Lets talk more about this cocktail that the president is taking tell many he what the early studies have shown and what the process would be Going Forward this is the first data that we sh seen on this first specific cocktail that was designed specifically to treat the coronavirus. We just saw that first study of 275 people now thats for use in the coronavirus. Using technology in the labs and it proved in a clun cainical trial in the field in africa that it saved lives. While theyre in the stage of proving this drug they designed for the coronavirus, this has a precedent in being a very successful approach. Fwheer pain demic. There is enough environments that they have begun talking to regulators about a potential emergency use authorization which is that expedited path way through the fda. And so its not inconceivable that this would potentially if the fda gave it the green light be available on the market in that fashion it is also a prevention for people that live with somebody that is diagnosed with covid19. And so a lot of different applications of this potential drug but in the early trials in the coronavirus, showed promising results. But as dr. Gottlieb is saying, still pretty early meg, thank you so much. So the update now, most of you probably know by now that president tested positive for covid19 as did the first lady. The first lady is now being described as doing well. The president is now striked as fatigued but in good spirits thats by his doctor at the white house. Further, nbc news sources are now saying that president has a low grade temperature. Just moments ago, joe biden in a Campaign Event just wished President Trump well in a live i vent that is being carried across the Cable News Networks i can tell you this. Nbc confirmed that president has a low graud temperatude tempera. And the doctors sthed about the president. Its being hes being ee val waited by awe team and well be making recommendations to the president and first lady about the next steps so more information from the president. We still heard nothing from him directly were expecting to find out more as time goes on. Absolutely. And, of course, our first thoughts are we wish him as weve all been doing all day a speedy recovery. Particularly hum and the first lady too but giving that worsening situation. Dr. Gottlieb is still with us. My first question that has come to mind is what the time line is like will you to be for the president from here if this is the first sign of a temperature, the first time sign of a fever. Is ut more likely that it will get a little worse before it gets better . Thats a very variable clinical course. The best outcome is that he gets better and by tomorrow the symptoms resolve. There is a picture that if a patient has that post viral inflammatory response, it seems to get patients into trouble, the on set of that is usually 8 to 12 days from the on set of symptoms so you start seeing that develop presumably next week we hope that doesnt happen with the president. He is getting excellent care that the tlinl in which youre looking at tip ukly, tomb to admission to the intensive care unit from the time of on set of symptoms is typically 10 to 12 days. Thats the course for patient thats tun to have progress you have symptoms and get in trouble with this disease. Like i said, it is hireghly variable we hope that the president recovers here. But just to be clear, how likely is it that someone of his age, you know, with everything we know about his health, is likely to have to be admitted to the hospital well, for an average 74yearold, the likelihood of developing severe disease which would require hospitalization would be about 10 to 15 . There is data put out on patients, a series of patients who got covid19 from january through may and patients between the age of 70 and 79, about 34 of them rurd hospitalization so that is any hospitalization but about 10 to 15 had severe disease that rurd a more sear yurs hospitalization or an icu admission. Those are the statistics but a lot of this is predicated also on data that is backward looking. Outcomes continue to improve i think that the data now, if you took a snapshot of people being admitted to the hospital now or getting vucovid19, it would look better than this data given what we know about the cocktail that hes been given at the moment, what are the other options available in the days ahead that could be supplement to that used instead of that if necessary . Thats great question dr. Gottlieb was just telling shep that he expected that they would go one at a toime on the drugs. We havent seen them been tested in combination so we just dont have good strong data from large Clinical Trials to tell us what the outcomes would be in those circumstances. Now in the on going Clinical Trials of the antibodies, there may be patient rz in the hospital receiving remdesivir getting the antibody there is not a lot of information on that. So what the next options would be in the clinical course, you know, sort of up in the air. It could be remdesivir and if nobody wants this to happen, but in more severe situations if people are hospitalized, then you do move open to the sort of steroid treatments but, you know, that they report awe mild fever at this point and not being hospitalized were stul talking about drugs that are used in much earlier sexual intercours courses of the disease its great that we got that news, dr. Gottlieb the results of the trial that was helping sick people that were not hospitalized. Is it being used so people may have gotten it on that basis. Its being used obviously in Clinical Trials. P patients have received the drug the lily drug cha is similar to the antibod you, the same concept, also had encouraging data around it i think we need to remember there is multiple products within this category they all look promising. The other option is they could redose the president with an ain antibody drug. Its pos ubl thsible they could that drug to improve the therapeutic effect but if he continues to progress, and we hope he doesnt, try to use remdesivir as well there is no reason to believe that the two drugs would interfere with each other. The but given that these are so highly experimental in this setting, you want to go one at a time if possible and certainly if the president continues to improve and doesnt progress rapidly that, would afford the opportunity to go one at a time with the medicines mike santoli, we know the reaction last night to the futures market when the first bit of news on this broke. Futures arent even open at this stage. What might we expect over the weekend or when futures do open on sunday . Yeah. You keep in mind were talking about 6 00 p. M. Eastern time on sunday when there will be, you know, an ability to directly in large numbers react to the news. Theyre through the lens of what does it mean electorally and for policy its not so much, you know, its unusual to have one of the episodes in any case highly unusual also 30 days or 31 days before an election so the we were already kind of trying to sort out exactly what, are you know, the political setup is going to be clearly, it is a much more intensive focus on the day to day reports of the president s condition and how that feeds into it all. And there was also this idea, mike, in the session today that the odds of stimulus, an agreement between the democrats and the republicans may have gone up slightly we heard House Speaker saying the dynamic changed a bit. Maybe there will be this sort of rallying around the flag type moment, mike you saw groups today in the market that are very cyclically oriented like industrials and materials and Energy Stocks rally. Is that a bad stimulus you know, thats no doubt that was in the air. There is no doubt the market for loet today, you dont want to scrutinize too much, but it happened when they said theyre open to an airline support bill outside of a broader stimulus bill that happened even before the reports that Vice President biden had tested negative. You have the big tech stocks down so, yes, the footprints were there to say that maybe we were pricing in the higher likelihood of some kind of stimulus cyclical type recovery move here on the policy front. The fact that he has not had to go to hospital, is that a very encouraging sign . Of course but, you know, hes still early in the clinical course of the disease based on when we think he may have been exposed it appears that this is the president s case, the first lady and Second Generation infections there is probably some event that happened late last week, maybe saturday or end of last week where multiple people were exposed to this. Maybe there were a couple different exposures. Now youre seeing the Second Generation infections result from that. And probably starting sunday or monday of next week youre going to start to see the Third Generation of infections so i would expect there is at least a possibility youre going to see other people contract covid19 or get infected with coronavirus because of this what is an outbreak right now the president is only a few days into his clinical symptoms hes probably been infected maybe four, five or six days at the most right now its early you hope he wont progress 80 of people have mild to moderate disease of all comers about 15 will develop severe symptoms b 5 develop very severe statements. I got a statement from regeneron . What were you saying . Youre hearing from regeneron. Im sorry i was trying to tell the producers. The i did get a statement. Theyre confirming that the antibody treatment was provided to the president under compassionate use request. They say as announced by the White House Press secretary, they provided a single eight gram dose. The cocktail of two antibodies for use way President Trump. Its an investigational covid19 therapy provided in response to an individual patient investigational new drug application which is often known as a compassionate use request from the president s physicians. Now the note they have a compassionate use policy but the priorities to maintain a supply of the drug in order to conduct rigorous Clinical Trials and in addition to the clinical trildz, there is limited Product Available compassionate use requests that are rare now they just are telling us about the rest of the Clinical Trials that theyre running for this burt they ha but they have confirm this under compassionate use to the white house, guys. Yeah. Meg, this was one that a lot of people were hopeful about. T theregeneron cocktail. Were about to see the high profile use cases here the question for the rest of the country and the rest of the world, perhaps this is the hope this would help bridge us to the vaccine, these type of antibody treatments that will help potentially fight this disease its for the seriously ul and those that are ill like the president. St when is it going to be available to the rest of the world . Sara, you ask a really good question there are so many complexities with compassionate use often theyre in short supply. They have to go through rigorous Clinical Trials. The safety can be definitively proven through Clinical Trials and so while regeneral ron was talking with regulators about a potential emergency use authorization which would make this more broadly available, you know, right now it is still in Clinical Trials. So the danger for any company, of course, in providing a drug to the highest profile person in the country and much of the world is that anybody else with covid19 anticipate who is in a similar position is going to say i want that drug too its not yet approved. When it does get approved, i you this dr. Gottlieb will have thoughts about this. It wont be available in huge quantities immediately weigh in it the secretary testified before the house dmot day. He made a statement that there may be availability of one of the antibody drugs within two to four weeks two to four weeks is about the time frame that it would take the fda to turn around and emergency use authorization. So it suggests that the agency may be contemplating an eua at this time for either the regeneral ron drug i dont think they made any comments theyre going to start contemplating an eua if that is accurate hang on, everybody. Were getting more breaking news out of the white house lets go to washington in this cleveland on tuesday. The runup to that debate and during the debate itself we now have some new comments from Chris Wallace who was the moderator of that debate he just suggested on Fox Television that it may be the case that neither biden nor trump was tested by the Cleveland Clinic a lot of people were under the impression that they were before the course of that debate. What wallace just said on fox is that the two candidates and thur staffs could not be tested by the clinic although people who were there in advance were tested by the clinic he said it was an honor system for the two campaigns to test themselves what wallace says is that the Campaign Teams didnt arrive until tuesday afternoon. There wouldnt have been enough time to have the test and have the debate at 9 00 that night. They didnt show up until 3 00, 4 00 in the afternoon. There was an honor system for the people that came in the hall for the two campaigns. That adds a wrinkle here they said that everybody had been tested on site before the event began. That apparently according to Chris Wallace, the moderator, is not the case were also getting new information now from the city of cleveland itself theyre saying that there are now a number of cases associated with the event on tuesday. The city of cleveland putting out a statement earlier today saying that theyre aware of positive cases of covid19 following the september 29th president ial debate in total at this time were aware of 11 cases stemming from predebate planning and setup with the majority of cases occurring among out of state residents at this time though that could change no City Residents appear to have contracted the virus as a result of this event so the city of cleveland now saying that 11 cases are associated with the predebate planning and setup and those cases are among the people who travel for the debate itself that could include anybody from white house advance to media to security, secret service, all the rest of the entire apparatus of the white house that travels anywhere the president goes for a big event for that there would have been hundreds of people traveling in this event. 11 cases says the city of cleveland were associated with it and well bring updates if we get any new information from the city obviously, didnt hear what wallace said personally. But the time line i think you just read out would have given three or four hours of time to get a test potentially in some tests can have awe turn around time quick enough for that to be addressed. Either way, what i was going say is the president has been tested every day this week since then is that not right . Ie, it would suggest whether he still had had the symptoms or started to have the symptoms that he would have passed the test on tuesday had he been test philadelphia he passed one on wednesday and thursday as well i have not seen i have not seen a tdetailed tiktok of when he was tested this week. I dont think we have that information from the white house yet exactly what day, what times the president s been tested. They said theyre testing him on a regular basis. But what wallace is saying here is that theyre essentially working on the honor system to rely on the campaigns to test themselves, including the principles before going to that cleveland debate and a lot of folks thought that everybody on site was being tested on site. That apparently now not the case according to Chris Wallace learning more and more. Stay close thank you very much. Keep us updated. Dr. Gottlieb, can you run through the toime line of when the president would be contagious if, for instance, did he not have a test during that debate would he be contagious presymptomatically how long is he contagious for . When are the folks that are at the debate that are testing negative now testing negative nn the clear . Even if he was tested at the debate, the test that might have been used might not have detected the infection at that point in time given when he became symptomatic in all likelihood he was presymptomatic during the debate that would be the time when youre most contagious the point where youre most contagious is right before the onset of symptoms. Assuming the onset of symptoms was wednesday or thursday, that would suggest he was presymptomatic its highly variable but thats generally the timeline. I want to pivot back to the statement that meg brought us five minutes ago or so from regeneron. How rare and unique is it to see a compassionate use of a drug like this . I dont think there was anything inappropriate done. It sounds like they went through the normal process to get a treatment in place with the food and drug administration. Those would be turned around very quickly its probably the drug isnt readily available. I suspect in extraordinary cases the company is making it available. This is an extraordinary case. If theres a treatment available that we think is going to provide benefit to the president of the United States, it should be made available to the president of the United States so i think this is wholly appropriate. You know, the only question is the choice of therapy. I think they probably consulted good physicians who have more insight into these things than me they could have chosen remdesivir, they could have chosen the lilly antibody drug meg tirrell getting a statement from the Cleveland Clinic. This is a statement that the Cleveland Clinic provided earlier in the day in response to questions about their testing protocols for the debate they note as a health advisor, they had requirements to maintain a safe environment in line with cdc guidelines, including social distancing, hand sanitizing, temperature checks and masking everyone inside the debate hall tested negative prior to entry everyone has been tested and tested negative by their respective campaigns theyre saying that the campaigns tested the candidates. I was curious to know how they got tested they say based on what we know about the virus and the Safety Measures in place, we believe there is low risk of exposure to our guests we will continue to monitor the information being released by the white house. The Cleveland Clinic saying everybody was tested and the candidates by their own campaigns before the debate. Meg, it raises a number of questions about testing itself we talked about some of them one is this idea that testing is just a moment in time, right you can test negative one day and positive the next based on when the infection shows up. Its not foolproof also, there are a ton of false negatives with some of these tests theyre using, especially if theyre using the more instant test talk us through some of the issues here with testing i ive been talking with epidemiologists this afternoon about this issue they point out this was not a failure of testing necessarily they say the Rapid Testing actually did catch this infection. It caught it in hope hicks and now the president. He said what the Rapid Testing actually did was stop the chain of transmission there with the president. Of course, the goal would have been to make sure the president never got infected but the thing that everybody points out with all of those issues you brought up is that testing a tool, but it is not the only tool and it needs to be used with masking and social distancing because testing isnt perfect. As you said, its a point in time its not going to be the only thing to keep you safe we have to do other things as well. Weve been discussing whether this could be a trigger to really change peoples approaches to masks and how often they wear them i just want to pivot quickly to the market what is the current reaction . The main index etfs actually firmed up a little bit from the close. Not a dramatic reaction. Really what youre seeing there was a pretty sharp slide into the close. A squaring up effect might be net positive the market, such as we can view it right here, wasnt taking these latest developments were hearing about the president s medical condition as any kind of out right negative certainly its just simply that theres treatment underway and theres no reason to be any more concerned. Dr. Gottlieb, as weve learned over the last few minutes more and more detail coming out about that debate, who was tested just on the question of Vice President joe biden who is out campaigning after receiving a negative test today, hes in michigan how much longer would the Biden Campaign be worried about getting a positive test post debate if he was exposed there to President Trump, who was presymptomatic and potentially contagious look, they say up to 14 dayds but 14 days, someone becoming symptomatic after 14 days after post exposure is a real outlier. Generally its 46 days. I think after 46 days its substantially diminished after potential exposure at the debate that you would still become infected. The regeneron antibody cocktail weve all been discussing that the president has compassionate use for, did you suggest earlier that he and his administration would have seen the data that regeneron has so far and that would have influenced their decision as to what to give the president weve all seen the data the data was publicly released, at least in top line form. I believe regeneron is discussions about the possibility of an eua for that product based on what they said publicly, if im remembering their statements correctly so the agency would be more privy to a lot of the bottomline data thats available. Im sure that informed the decision to issue the compassionate use authorization for the president to use the product. The fda would base that in part of what they knew about the product based on their ability to access the bottomline information from the sponsor. As i said, this could be potentially the most high profile case which could justify that emergencyuse authorization if regeneron gets it for this antibody cocktail. Meg, the president getting infected with covid19 following these developments is a reminder that we are by no means beating this pandemic. Some of the numbers lately, while way off of their lows in terms of cases and hospitalizations and deaths have been troubling youve been following some of the hot spots in this country and some of the trends weve been seeing. Run us through the broader context. If you look at the trajectory of new daily cases in the u. S. , they have been on the rise again. The places where were really seeing infections going up like a spike, places like north dakota,south dakota, wisconsin, areas that hadnt yet seen their first surge of the virus but troublingly as well, we are also seeing rising cases in areas that have already dealt with their first surge, neighborhoods in new york, new jerseys numbers going up. So were heading into the fall this is the season so many folks have been warning us about, because it gets cold, we cant do so many things outside. Dr. Fauci has been saying we had a window to get our case numbers low in order to keep it under control through the fall and the winter you know, hed probably argue we still have that window and we need to do it through masking, social distancing, all the things theyve been telling us this entire time this is a tough virus. Its amazing to see us get through all of the systems that were designed to keep the president safe. And thanks from the closing bell team i know you guys are going to stick around as we go to the fast money team. I would encourage people to keep in mind its been more or less trying to stick into a range right now despite all the drama. The president of the United States is fatigued but in good spirits, breaking news this afternoon on cnbc. Well pass it over now to melissa lee and the fast money team cnbcs breaking news koch g coverage continues right now im melissa lee. Welcome to fast money. We start with latebreaking developments out of washington the president and first lady in quarantine at this hour after testing positive for covid19. While Congress Shows major signs of progress on the next round of the coronavirus stimulus plan. We start out with breaking news on the president s house, the white house just announcing a short time ago that President Trump is