What i think we ought to do as we go into the march meeting and, obviously, in subsequent meetings this year. Charles now, there has been some intriguing action despite what you see in the overall market. Hardhit stocks finding buyers as the coronavirus stocks are actually giving up gains. And then, of course, mixed signals from the socalled safe havennings. Also the crisis deepens around the world, the number just keeps getting higher and higher, the number of countries with confirmed cases topping 50 and that includes mexico. However, the global rates for a vaccine is offering greater hope, and in the Business World we have amazon thats asking all of its employees to defer nonessential travel including in the United States, and just moments ago that google is banning employees from traveling to south korea or japan after one of their employees in zurich reportedly tested positive. Back here at home, california has become the epicenter of the virus with more than half of the confirmed 60 u. S. Cases, and investors are still trying to determine how one patient became infected without traveling internationally or being in close contact with anyone who had the coronavirus. Here in d. C. A Senior Administration official tells fox news there has been Good Progress on an emergency bill from congress as dr. Fauci tells lawmakers there may be many more cases in the United States. Now along with these headlines, theres so many other factors, i think, technical factors that i think are helping to make the Snowball Effect of this selloff. I mean, theres passive investing, theres these algorithms, even loose rules on short selling. So the big question for you is how can you navigate these markets as we head today weekend. Weve got an allstar panel for you, investment manager chief strategist Alicia Levine, heather zimaraga and jack ablin. Heather, the last couple times you were on this show you urged the viewers to be cautious, not to force anything. But that was about 3,000 or so points ago. Where are we now . I think it still would be prudent for investors to wait at this point in time. Flight to safety, flight to quality, the 10year at 1. 16, historic lows. Weve never seen this in our lifetime and perhaps never will. So especially going into the weekend, not knowing the extent of the outbreak, i keep listening to the cdc and dr. Tony fauci of nih who you mentioned and wait. Charles you know, alicia, every single day theres this sort of theres been intraday mini rallies or rally attempts that have been snuffed out birdies appointing news. I think yesterday it was the gavin newsom news conference, coupled with kaplan today whos probably one of the, i would suspect hes a little bit more hawkish than the other fed representatives there. But hes saying or at least intimating that if the fed does act, it wont be an emergency action. They wont do anything before the next meeting. Right. So the public stance of the fed is that they want to wait and see because i think theyre seeing this as a temporary hit to Economic Activity. And it is a temporary hit. The fed is most likely not wanting to cut into charles do you remember last year when jay powell used the term transitory and the market went straight down . Correct. I think this will be a very long weekend. This is a working weekend for the fed. Okay . So they have to really model. This is temporary but deep, does the fed cut anyway. We actually expect that there will be a rate cut by the summer because of that, because we think its going to be temporary but deep. Charles if that deep if its that deep, wouldnt you argue for a swifter action . Wouldnt they have to make a move between now and that march meeting . You know, it actually depends. I think they may be reluctant to go by march. Charles jack, were pulling down again. Its almost like chloricwork as we clockwork as we get towards the closing bell. And a lot of people are saying this has got to be machines, algorithms, other factors. For individual investors that kind of thing is very discouraging. It is. You know, when you look at the price action and assume this is, you know, by informed investors, i think people will convince themselves that whoever is selling knows more than they do, and perhaps they need to be more concerned. I think to your point, charles, a lot of it is just algorithmic. The fact is that if the market breaks down below a certain level, then the algorithms will just pile on. So what we tend to find is we get exaggerated moves to the upside, well get exaggerated moves to the downside. And as ive, you know, continually affirmed that these algorithms actually draw liquidity out of the market. They are not create liquidity like they claim. Charles i agree with you a thousand percent. Heather, we had some important Economic Data that was overshadowed, but i think both tell really amazing stories. Conflicting stories, if you will. Consumer sentiment at 101, the second best number since 2004. And by the way, this was taken just until a couple of days ago. The coronavirus was mentioned about 8 of the time except for monday and tuesday this week when it was 20 percent of the time. On one hand, the consumer which, obviously, is the linchpin of the economy, hence the stock market its still strong the but, obviously, becoming anxious. Right. The consumer is the backbone of the economy right now, and i think we should point out the great Economic Data in the u. S. And that the stock market is not going down for fundamental reasons. Its declining purely on the basis on fear of contagion and disruption of supply chain. That doesnt change the retailers or kerr staples at this consumer staples. Things you do at home every day, you need medical supplies or toiletries, you brush your teeth every day, or at least i hope you do. Simple companies that have a history of paying out dividends, and they may have unjustly sold off due to the spreading of the virus. And thats where you look at great deals. But the u. S. Economy is strong, its just an unfortunate, horrific potential pandemic that we have on our hands thats sending the markets lower. Charles to that point, they say panic is best avoided by a strong sense of confidence in the governments response that aim to control the potential spread of the virus and limit any resulting damage to the economic welfare of consumers. Its all about psychology at this point, isnt it . So it is a little bit about psychology because the fear is that this is much worse than what the news is. Like, if you think about it, only 500 people in the u. S. Have been tested for coronavirus. So whats happening . Investors are filling in that black hole with the worst Case Scenario charles but the worst Case Scenario would have to have something to do with the American Consumers staying at home. Thats right. So, look, we have the best job market in 350 years. We have 50 years. We have wages rising at a decent enough pace, the bottom quinn teal of wage earners having a very nice pay increase, almost 4 . So the foundations to the u. S. Economy are very strong. Its the fear thats driving this. To that extempt, i agree with heather. Having said that, there will be a hit to earnings charles right. And its hard to model right now because the kind of quarantine that china pursued in the effort not to leapt the virus to let the virus spread is not going to be pursued elsewhere. Theres going to be Economic Activity in the west and developed countries. There will be a hit to earning, how much . The markets pricing in the uncertainty of being able to model it right now. Charles jack, to that point, youve seen a few of these episodes, but this has its own characteristic. The speed, of course, is whats standing out now, how quickly weve retreated from alltime highs. What would you compare it to . History, oi, yeah, this is very similar to this period or that period . Sure. Well, given the fact that economists and strategists me included are not great epidemiologists, i can go back and look at past outbreaks and see how has the market responded. And what i have found is if you go back to sars, mers, avian flu and others, the market tends to drop somewhere between, you know, 515 . This time could be closer to 20 over a period of roughly 28 trading days to 148 trading days. But the one common theme through all of those previous outbreaks is if you look one year from the time the outbreak first hit the news, the stock market, s p 500 has been up. In fact, out of those five times, the stock market has been up more than 20 two of those times. So thats i do take comfort in knowing that, yes, there is a valley here. Investing is a longerterm endeavor. And even one year from now history says the market will be higher than it is today. Charles heather, i think we all probably unanimously feel the longer we go out, the more likely it is well recover from this. But nearer term the big debate is ushaped recovery in the market, vshaped recovery . I personally think there are going to be sessions real soon when the dows up 700 points, 800 points, 900 points [laughter] i dont know if it will sustain itself, but if you go back to 2008, for instance, the sort of volatility we saw there, the swings were phenomenal even as we were melting down. Even during the great depression, we had many, many bull markets inside of a stretch of, you know, that historic period. No, youre right. So its a great time the volatility is, if youre a trade or. And we are up 700 points next week, charles. That must be from all of your buying alone. [laughter] charles dry powder, young lady, im ready. I heard theres a lot of dry powder on the sidelines. The largest money flows, the largest flow through the Money Market Fund this year, some say ever, over 500 billion. There is a lot of cash on the sidelines to take advantage of buying opportunities. But again going into a long weekend, i think i would wait. The u. S. Consumer is very, very strong. That is the backbone of the u. S. Economy, and i dont think well get a vshaped recovery. That would be great, but i think well bottom out. You have some consolidation, you get some clarity, perhaps vaccine in the making, and then we can head higher again if the economy in the u. S. Is strong. Charles heather, jack, thank you very much. Alicia, youre going to stay with us for a little bit longer. In the meantime, investors to heathers point were all waiting and watching this race for safety from the selloff, but the World Health Organization, theyre also racing for a coronavirus vaccine. Saying more than 20 vaccines are currently in clinical trials. Grady trimble live with that. This could be the ultimate news were waiting for. The latest organization to say theyre getting closer to a vaccine is the Galilee Research institute in israel. Scientists say theyre weeks away from developing a vaccine that has been effective so far in preclinical trials. It could be a few weeks til its ready, and then after that it could be available within three months. Aside from those researchers in israel, here are some of the Companies Working on a vaccine; morerna, gilead and johnson johnson. A all of them, interestingly, in the red today. They have been outperforming the market, but that is not the case today. Theyre at various stages of development of vaccines and treatments and moderna is the first to be ready with human testing. Thats going to be in the process in the next few weeks. I want to turn your attention to another company though. Its a Biotech Company called novavax also working on a vaccine. Its up today, so its the opposite of all those other companies. Its vaccine has started animal testing. Its important to note though that dr. Anthony i fauci, who you mentioned, with the National Institutes of health, he says even though progress is being made, it could be a year to a year and a half before a vaccine is widely available and ready for people to use, and thats because there are so many layers of testing. They have to test on a small pool of people, then a larger pool of people before they can really broadly administer this vaccine. So as you said, it is a race to get this vaccine ready to go, but it could be a year to a year and a half til anyone gets to the finish line of it. Charles ive watched novavax for a couple of decades. I dont know if you know this, but in december of 2001 it rallied to 291 a share. Theres absolutely no doubt that if any of these companies are successful, these stocks can go absolutely to the moon. Thank you very much, grady. Alicia, you wanted to chime in. Yeah. I just wanted to talk to this point a little bit because, actually, for the market the news that would help the market is treatment, not necessarily vaccine. Charles which one is more likely to happen first . I think treatment. You can test right now. You have sick patients, and you can treat them, and you can see if they get better. The problem with vaccine is that you have to then challenge the population with the virus that creates moral challenges. Charles great, great point. So you have sick patients, you know theyre sick, you can treat them, you can do la sew see bowcontrolled placebocontrolled trials. I think youre best off thinking about treatment in the short term, bringing back confidence to the market. Charles thank you very much. Since there is no vaccine or treatment right now, the World Health Organization asking people to avoid touching their face, stay at home, and if you feel unwell, if you stay at home also, of course, wash your hands frequently. Now, according to a survey done back in 2015, one in three across the world dont always wash their hands properly of after using the toilet, and italy which, obviously, has become a quick epicenter of the virus not doing much better. All right, folks, we want to go down to the floor of the New York Stock Exchange where Jackie Deangelis is. Ing whats the mood down there . It cant be shock and awe anymore. Reporter not shock and awe, charles. I will say this, the market clawed its way back a little bit. There was a little bit of a sigh of relief on the floor, and now were down another 900 points. Just shows how volatile this market is. And just when you want to breathe that sigh of relief, its not necessarily time to pause. Whats interesting about the moves that are being made in stocks today, its not exactly what you would expect. Grady put out some of those vaccine makers, and they were all lower, but novavax was up. Im watching the chipmakers very closely, and were seeing modest gains, gains across the board. These are companies that have exposure to china. The thought is that some of these will benefit from the fact that people will stay home maybe and not be traveling as much and using some of these products with chips in them. The other thought is they got beaten down so much that investors are starting to get back in, and that may be a theme that we start to see as we move forward. Also really interesting is the cruise lines, they are trading higher. Thats one of the biggest sort of fear pockets when it comes to the coronavirus, but they just got so slammed that its hard for investors not to come in and scoop some of these up because as your guests were saying before, this may not be the kind of thing that lasts forever. If we look at viruses in the past, certainly, they come and they do blow over if youre patient and tolerant. I also want to show you 3m because 3m was trading higher today on the fact that it produces the masks that you need, the respirators for this. And 3ms stock is actually trading lower now. Not necessarily what you would expect. The same is true for apple and microsoft. They were up earlier in the session on that buy in the dip mode, now theyre back lowerment it shows you a market thats very undecided, doesnt necessarily know where its going from here. But a couple of traders telling me they hope today is the last day of severe selling. Maybe the weekend will come along, people will reevaluate next week. Charles jackie, appreciate it. Kyle lamberts with us, jackie was describing whats known as price discovery. And i think weve, were seeing a lot more of it today where you get some nibbleses in there and you get these little spurts, maybe they pull back a little bit. In the meantime, i think its also telling that these coronavirus stocks, the ones that have really benefited, most of them have come down a whole lot. It feels to me that traders hike yours are starting to get yourself are starting to get their cash and trying to start to position themselves. Well, people are trying to time this. I think, you know, if i i had to say right now, id suspect were going to go into the close today at the lows because no ones going to want to be long going into the weekend trying to figure out whats going to happen news wise over the weekend if things get worse. I dont think you want to go into monday with that. You know, and i think, charles, as we talk about this, were talking about the coronavirus, its really the effects of the coronavirus thats causing it. The effects are supply Chain Disruption and earnings declines. And i think this really highlights we are way too dependent on china, the world is and the United States certainly is, for our supply chain and for a lot of our products. And so i think, again, we need as a country and as Companies Need to really look at diversifying away from us having, you know, a communist regime thats simply not telling us everything with so much power around the Global Economy. Charles theres no doubt, hal, that theres an epiphany, if you will. Certain isly, if its not in boardrooms, its on main street, is and main streets going to speak very loud and clear, i think, over the next few years. If these Companies Really do belief its all about stakeholders and no longer singularly the bottom line, some of them, by the way, have already done that because of tariffs. On the markets themselves, hal, what are you looking for . I think one of the tells will be the session where we actuallrally into the close. I mean, those to your point, weve been selling into the close. Fridays are just tough to hold in this environment. Right. I think youre going to have to see. That i think is other thing is the 10year yield go back up instead of continuing to go down. Thats a big risk tell right there, what happens with the 10year. As weve seen, its dropped to alltime lows, the yield has. Everyone is flowing into that safety. I think youre going to have to see a reversal there. And then if you look at it, a lot of these firms are calling for earnings are going to be flat 2019 instead of up 10 . The s p, if it earns 165, you know, you put a 17 multiple on that, you know, thats about 2800 on the s p. So, you know, at 2800 youd probably be pretty good long term as far as jumping in certainly at that level. Thats a little bit more down from here, but i think were getting close. Charles everything is oversold, perhaps yep. Charles for the most part, right . Investors are wondering, i got emails ranging from apple to ford. A lot of people looking in the oil sector which, by the way, yesterday became less important to the s p than utilities. You could never have convinced anyone that could have ever happened ten years ago, certainly twenty years ago. So theres going to be sort of at the same the same tide lifting all ships, how do you zero in on names that should outperform once it feels like the coast is clear . You just said it, the energy stock it is have really gotten crushed. But the problem is theyre not a big part of the index anymore, so most people that jump in are going to be buying that index, and then that goes to the big napes in the index like an apple, google, any of the tech names are probably going to get a pretty big bounce. And you would think from the stand point of a google perspective, they shouldnt be affected by this. I mean, you know, their product is effectively advertising, so google should be able to bounce pretty nicely as this fear subsides. But its being sold because the indexes are all being sold off. And a big percentage of it your stocks are going to go down as well. Charles yeah. Passive investing in that crowded trade is wonderful on the way up, pretty painful on the way down. Hal, thank you very much jumping on the line with us. Thank you. Charles trade with china, folks, i want to talk about this for a moment because i think its a perfect time for President Trump to suspend the tariffs. A although chinas showing signs of returning to work as the number of virus cases have absolutely begun to slow down, the ramp back to full capacity, obviously, is going to take some time. Meanwhile, lots of containers are filled with rotting products, orders that have been canceled as World Leaders in Financial Markets adopt a worst Case Scenario e and defend against the spread of the virus on the fly, the general public becomes more wary. Thus far, americas held up better than any of these nations in asia, in europe, but its not enough. This is the perfect time for President Trump to show the entire world that america hasnt forsaken them in the overdue bid for fair economic relationships. It would be more than nag unanimous a gesture on my part, and i also think it would move the needle on economic optimism. The goal was to innick enough pain for corrective actions on their part. Progress, of course, has been made and more will surely follow. Moreover, even globalists have to admit at this point that its dumb to have so many vital components of our lives, our daily lives in our economy centered in the nation that has its own goals including supplanting network as the preeminent nation on the planet. In the aftermath of this coronavirus, it would be criminally negligent for business businesses not to diversify their supply chain and bring those jobs back home. As President Trump is clamoring for swift action from the Federal Reserve, i think this is a chance for him to lead by example and temporarily lift tariffs to help china and the worlds economy get through this very difficult period. Im going to go now to christina parse neverless at the nasdaq. You have so many Tech Companies that are issuing statements saying that theyre going to be banning travel or canceling their conferences. And so this is going to create havoc in the travel industry. I want to focus on facebook, the fact that theyre canceling their developer conference. Last year they got about 5,000 people that went to this conference, and it was set for may. So youre thinking how far in advance some of these companies are moving and worried about the coronavirus spreading. The second point, theres this really well known game developer conference. First you had amazon cancel, now microsoft pulling out, and then this comes after just a few days ago we had cancellations from the mobile world congress. This is the biggest phone conference up there, thats being canceled. And then last but not least, a lot of European Companies have been sending out emails to their employees. I want to focus on necessarily, unilever and loreal, all three restricting travel for their employees. They do not want them traveling. When you add up the number of employeeses, thats almost a half million employees just in the those three companies alone around the globe that are being asked not to travel. And an ec toteally, charles, here in new york city there are many banks that have begun to send out emails to their employees telling them not to travel to these specific countries, italy being on the list. And there was one bank, i saw the email you asked me not to say the banks name should you travel anywhere near that region, then theyre asked to selfquarantine. Theyre asked to stay home for 14 Business Days so as not to create havoc in the work space. But it seems like more and more employees are definitely planning, and thats important, to plan for the worst but hope for the best. Back to you. Charles kristina, thank you very much. Stocks are still in selloff mode as wall street struggles to get a handle on the economic impact, now its on every continent except for antarctica. New suspected cases are causing anxiety throughout latin america, and a Government Official tells a local newspaper that brazil will likely cut its gdp forecast due to the virus. I want to bring in eduardo, a brazilian congressman. Eduardo, thanks for joining us. Thank you for the opportunity. Charles let me ask you first and foremost, your first case in brazil, already concerned that its going to have a negative impact on gdp. Is it too early to forecast what the impact would be . I think its a little bit early because no one knows what is really going on. And especially because people sometimes are afraid about that china maybe, they are not telling the whole truth the, you know . So we do have one confirmed case, we have 70 suspected cases, but we have to see that. For sure, it has potential as china is our first trade partner, so lets see what is coming. Charles you know, its interesting because your father and President Trump have been at odds when it comes to certain things on trade, and one of the things it appears that brazil actually became closer to china. What can be done to rearrange that, to get the brazilian relationship with america better . We have to see how fast is this sickness. It is not like an ebola or not that much so we have to see it. Anyway, we are waiting for other countries policies, what theyre going to do and for sure be ready, any kind of other situation [inaudible] meetings charles right. But we have to see. Its going to be early, and i would like to not scare that much people. Charles carnival. Brazils, one of the biggest events in the world, one of the biggest parties, and a lot of americans go down and participate. What plans are there to make sure that folks who come to visit your country are okay and, you know, and protected from this virus . Carnival officially ended on wednesday. Charles oh, really . The first case that we have yeah. This weekend we still have a little bit of that, but it was too early to say that our Biggest Party of the year because of a virus. So thats why we had the carnival. But maybe if the coronavirus maybe other events, for sure. Charles youre at cpac right now, a big conservative gathering. Also earlier in the week you were at a dinner hosted by steve bannon for international populist leaders, at least thats what the headlines read. Do you think its gathering momentum . Sure, yes. We Work Together with nigel farage from united kingdom. We are at cpac where you have also leaders from colombia, from chile, so we are all connected because the leftwingers, theyre all connected in a global scenario. So we have to do the same and, for sure, we are experience. Last year we made our first cpac in brazil, another one this year, and we are stronger than ever. So we have to keep with this energy to avoid socialists. If you want socialists, you can go to venezuela and cuba. Its Never Working anywhere in the world, so we have to work and have worked for free markets and for this kind of policy. This is the momentum of brazil. Last year we created more than one million jobs, and also brazil [inaudible] a little bit more than 1 . So this is prosperity, and we are just bringing prosperity to the people. And socialism only brings poverty. Charles yeah. I mean, i think the socialist part is itself evident. Of course your country has a history of voting in farleft and farright per se, but theres Something Else going on, right . Theres Something Else. Theres a revolt against the establishment around the world. I mean, we saw it in japan, in india, weve seen it throughout europe with brexit. To you just get a sense that the elites have been in charge for too long and theyve delivered too little to people everywhere on this planet . Yes, youre right. In brazil, for example, we were facing a lot of big, huge [inaudible] like never, ever we saw. Not only brazil, but im talking about in the face of the everett. The everett. And thats why venezuela, nicaragua and cuba, people realize this is not the way they want to live. In brazil we pay taxes like a charles eduardo, ive got to leave you there because weve got some major breaking news coming from our Federal Reserve. Want to go to Edward Lawrence in washington d. C. Edward . Reporter yeah. This was the message from chairman jay powell to markets, to investors, to everyone out there. It says this the fundamentals of the u. S. Economy remain strong. However, the coronavirus poses evolving risks to the Economic Activity. The Federal Reserve is closely monitoring developments and their implications for economic outlook. We will use our tools and act as appropriate to support the economy. This is a statement here late in the afternoon as the markets, again, falling for, what, for the fifth day in a row here because of coronavirus fears. Charles all right. Real quick you said maybe summertime, but you said theyd be working over the weekend. It sounds like that sense of urgency is there. This is before the cut to calm the markets with a signal that they understand it, that theyre changing charles so theyre laying down the rationale for a cut. Theyre laying down the rationale an attempt to kind of stem the panic. When the cut happens, again, within the next few months, by the summer, that this is the beginning of the working weekend where they start letting the market know theyre open to it, and that could stabilize things right here, actually, to know that the fed is not going to stand back and do nothing. Charles the fed has been the markets friend for a long time. I want to bring in chief investment strategist brian bell sky. Youve been right and optimist ec, you havent been changen shaken out of this market, what do you make of this latest challenge . Well, thanks for having us on. Its an honor. I think that this is way overdone. When you take a look at people making prognostications based on four days or five days of selling, a recessions not made in a day. If structural changes to the market dont happen in a day, and to have the type of weakness weve seen this week to be Even Stronger to the downside than 2008, i think, tells you this is all about fear. Now, im not trying to dismiss that we could see further issues with respect to coronavirus. But until we see actual results change from companies when theyre talking about actual numbers and growth rates changing, i think, i think the market is way, way, way ahead of itself. Remember, you cannot rationalize withen irrational person, and you cannot rationalize with a rational market. We were irrational on the upside in december and january, and now were irrational to the downside. Charles brian, yesterday goldman came out with a series of probabilities, their baseline case suggests perhaps s p earnings of 165. First of all, do you think that is it too soon to make that sort of assumption . And secondly, if that were the case, what kind of multiple would this market be able to fetch, and where would we go from there . Well, i cant speak to mr. Kaufmans process. I stand behind our process, and were not changing our numbers. From a multiple perspective, i still think a high teens, low 20s multiple from a longer term per spect you have still makes sense especially given where riskfree rates are and where risk premiums have been. Weve seen a change this both of those through this pullback, and so weve seen a tax break to the consumer that nobodys talking about where youve got Mortgage Rates at all time lows and Interest Rates at alltime lows and the consumer still being strong and fuel prices going down. I think the bigger issue, charles, is that, yeah, we may have seen a slowdown in demand with respect to what were buying, but i think we could see a demand shock to the upside where em people finally take where people finally take a deep and get back to buying. Again, this is all dependent upon the headlines stopping with respect to coronavirus, and we see some actual reality that this is contained and that the risk of a pandemic which i believe that strategists and economists should not be using that word lets lee it to Health Professionals to do that. Charles so far the World Health Organization has been reluctant to call it that, although they say the window is closing quickly to prevent it. If you think about the last couple of weeks, for instance, all the Economic Datas been phenomenal. Last week it was so good, the new york fed began the week of the First Quarter of gdp at 1. 3 , ending over 2 . This week same thing, pending home sales through the roof, consumer with confidence, the second best number since 2004. So youve got these factualing momentum things on one side and pure, i raw speculation and fear on the other side, and right now pure, raw speculation and fear winning out bigtime. Well, thats right. And last night it took us about four hours to get the report out, but last night we authored a report, our second report of the day, actually, entitled epidemic in fear. And to be clear, our country, our society and the investment world especially, charles, has been enveloped in this fear since 2008. The majority of investors, i believe, have missed the upside. Eight out of the last ten years weve had outflows from equities. The fear story is a much easier story to sell. It takes faith to believe in things, and faith in our business is fundamentals. And the fundamental construct of the United States stock market in the last eight days has not changed. If you like stocks eight dayses ago, you like em a lot better here. Courage is needed to have conviction. This isnt cockiness, this isnt being flippant, its conviction. I believe that nothing fundamentally has changed. And until we see the realities and the actualities of numbers really changing, thats when we will act. Shame on those that are scaring everybody and talking about that this is the end of the world. I think its terrible. Charles can i have you every day at 2 37 . [laughter] my man, thank you very much. I loved everything you had to say, and i think the audience needs to hear that as well. Thank you, see you again real soon. Right now, folks, jeff flock is on the floor of the cme. Jeff, its been crazy, the cme, the commodities and everything. Whats going on now . Reporter you know, chairman powells statement came out just as oil was closing. We closed at 44. 76. Weve been down much lore. But since his statement came out, because we continue to trade in the after hours, were now up will will, well, 25, 30. I dont know if thats in response to the calming of the waters there, but if it was, that made some sense. The other things, of course, people are looking at that are traded here, treasuries which, you know, the yield is crazy, but it is what it is. And then the fed fund futures. Everybody is pricing in at least this market in the fed fund futures is pricing in 100 chance were going to get a cut in march, and that were going to get an even bigger cut when it comes to april. Whether thats true or not, i dont know, but thats what the market says so take it from there. Charles . Charles jeff, i will. Thank you very much, my friend. I want to go back now to jack ablin. Im not sure if you were able to hear everything that Jerome Powell said, but it was obvious enough that he saw a sense of urgency to at least communicate not just to wall street, but to the world. So does this make it more likely, perhaps, that we could see some action from the Federal Reserve . Yeah, i it certainly does, in my view. The futures market is underscoring that too with 100 certainty of a rate cut at least in the futures market. Yeah, in the march meeting which was really off the a table a week or two ago. I dont think anyone expected any rate cut in march. So i do think that this market move has gotten the feds attention. I think we keep in mind while this is a, i view a technical downdraft, you know, what the fed is trying to do is prevent this from being a cyclical downdraft, from having the market move somehow migrate into an economic story. Right now weve sort of kept those two apart. And well see if the fed can hold the line on just the technical corrections. Charles some focus out there saying the fed, you know, theres nothing they can do visavis the actual spread of the virus and that they have such limited tools to begin with. This kind of thing could be a mistake, to actually signal send the wrong signals to the market which could actually hurt the market. Yeah, i mean, its possible. You know, certainly, you know, a company that is not inclined to build a building today may not be more inclined to clild build a building if their Financing Rate is a quarter point less, you know, a couple weeks from now. So, no, i do agree that this isnt necessarily going to move the needle on business decision making, investing or anything of that nature. I think what theyre addressing is the, you know, the market itself. I think theyre trying to create this fed put that perhaps if will assuage investors to say, look, ive got your back, were going to do whatever we can to protect those that are, you know, tiptoeing back into the equity market or those who are just, you know, maybe unsure but want to hold. Charles right. So i think that step one is get the stock market stabilized, and i think that will go a long way to do that. Charles jack, before i let you go, for me, i think, Jerome Powells got to be looking at, yeah, we know the mandate with respect to inflation and pull employment, but he also understands animal spirits and the main street consumer remaining confident and upbeat, and if people wake up every morning and the dows off another 1,000 points, that could erode quickly. Maybe stepping out of his natural role, but it feels like, to me, he actually would be trying to save main street more than wall street. It could very well be. I mean, the problem with, you know, if youre a leader in the administration, you have a balancing act, right . You want to be able to protect the american people, you want to be able to put measures in place to prevent the potential spread of this disease. But on the other hand, you want to make sure Economic Activity, you know, continues. And so maybe by lowering rates and easing policies, perhaps some qe, who knows, it allows the administration to bridge the gap to protect america and say, look, you know, we dont want people moving around, we dont want people doing this, this and the oh thing. But the other thing. But weve got Monetary Policy thatll help us bridge the gap until we can issue an all clear signal, you know, a few months out. Charles jack ablin, thank you very much. Thank you. Charles Vice President mike pence has been put in charge of controlling all the messaging out of the white house on the coronavirus, this as the cdc has been getting high marks from the public for giving the facts and really controlling the panic. The virus spreads here at home, will this transparency continue . Want to bring in District Media president beverly hallberg. Beverly, two weeks ago i said the cdc was the winner because we heard from them every day, they were straight with us. I still feel that way. Yeah. I think theyre being straight with us. I also think that the trump add manager took a very hard step early on which is to make sure that any travel from some of these regions where there has been the virus in high number, that those planes cant come in. So i think the Trump Administration has been doing a good job as well. But with this whole issue, the messaging is so important. Part of this is making it clear that this is something to be concerned about, theyre on top of it, but also not to create panic. Yet, charles, when i watch some other networks this morning, you see wall to wall coverage not just of the facts and the numbers of people who are infected in this country, but really mass hysteria. Really what i think is causing a panic e. And so what im wondering is, i think the economy is responding to this because this is a global issue and other countries dont have it under control. But i think when it comes to americans right here in this country, i think theyre used to these type of stories coming out where the world is ending, and im not sure that they buy it anymore. So messaging is extremely important. Its going to be interesting to see where americans line up on what they believe in the news. Charles well, i mean, and to your point, we did go through the recession fears that i do believe almost tipped us into recession. The reporting of it in december 2018, again, we had some of that last year, the trading war, even after the actions against the iranian general. The press conference that President Trump had this week, you know, i thought it was, i thought it was a good press conference. I was fairly annoyed though that there was so much time spent on whether or not mike pence was a czar, particularly since president obama, the guy in charge of his Ebola Response was a lawyer, you know . Those kind of things bother me particularly in a situation that could be a national emergency. Yeah. I think you can critique the president and say does he always use the most eloquent speech to talk about what hes talking about, but when it comes to how theyre handling this, this should be a bipartisan effort. We have seen bipartisan spending on this for the research of the vaccine that, hopefully, well get sooner rather than later. But there is definitely a political attack not just on the Trump Administration with all of this even though the hhs secretary, secretary azar, has been doing a fantastic job, but, of course, an attack on mike pence, on the Vice President. What i think is so ironic about the attacks against mike pence is they do realize if they try to impeach the president , he would become president , correct . So they seem to not want the other guy who would take over if President Trump was ever impeached in the future, because i think they want to try to do that should he win election again. Charles beverly hallberg, thank you very much. White house chief economic adviser larry kudlow telling folk Business Today that this selloff at this time has to do with external shocks and not domestic conditions. Claman countdown host liz claman is with us. Liz, are you hearing anything differently . Liz yeah, you know, im actually just hearing that it is very much driven by the fear of something that is on the horizon for the United States and not something that is actually here in great numbers. We know that some people have tested positive here in the United States. But that the fear is whats driving it versus say, for example, back in 2008 we saw that lehman brotherses went bankrupt. So that in and of itself is a fact. So far were waiting on more facts here. But does it really matter, charles . The market is a voting machine. If you figure its a gigantic herd or flock of birds, who knows whether its the flick of an insect that interrupts them that makes them all turn tail. It is what it is. We are seeing a six to nowsevenday selloff and who wants to wait around . At least this is what the investors are looking at and see how bad it does get. However, you could argue, and weve said this before, that this is an opportunity. But people said that on tuesday and then the market took another leg down. What were going to do today is were going to bring in a guy named eric freeman with u. S. Bank Wealth Management, hes the chief investment officer, 170 billion. Were going to talk to him about how he sees this. Of course, the financials have gotten hammered. We also have Bruce Rosenberg and russell flannery, forbes Shanghai Bureau chief. Amazingly, he has a ticket in his hand united airlines, a flight to shanghai tomorrow. Were going to find out whether the airline will even send him. And then, of course, were going to be watching every single tick of this especially considering the Federal Reserve was trying very hard to calm jittery investors. We have a long way to go to get to session highs, and session highs were just a loss, i believe, of 272. Were still down 554. This may be that case, charles, where people just dont want to go into a weekend with positions in equities. Charles right. Wouldnt be the first time. I think its been six out of the last seven fridays, but one day, one day in your hour. Big rally to the upside. [laughter] in the meantime, folks, strap on that seat belt because its going to be a wild ride no matter what. Tune in to the claman countdown at the top of the hour and as everything, the coronavirus outbreak has become extremely political as thousands are sickened, here at home its become a war of words between democrats and President Trump. Chuck schumer calling the white house response incompetent, nancy pelosi says its anemic. Trump tweeting the democrats stopped us from being way ahead of our battle with coronavirus. So where exactly do we go from here . I want to bring in daily callers stephanie hamill. Stephanie, you know, i cringe sometimes when i hear these politicians on Something Like this because the Collateral Damage is the psyche of the American Public who needs leadership at this point. Yeah. I think we saw this coming about a month ago when President Trump issued the restrictions on travel from china as well as when they put together the Coronavirus Task force. He was criticized for that. Those in the media werent taking it very seriously. In fact, cnn issued a tweet criticizing the Coronavirus Task force for being too white. And then President Trump was called a racist for his travel restrictions. Now were seeing headlines that the coronavirus is the trump virus. That was a headline written by an opinion columnist from the new york times, and were also seeing some other opinion writers at the Washington Post using the coronavirus as an excuse to promote medicare for all. This is a lot of hysteria, a lot of misinformation. I think its shameful that people are playing politics when were talking about lives and the health of our nation. Charles ethan, you know, i guess im just not surprised anymore that theres nothing that seems to unify us down in d. C. But this one was just its been disappointing for me so far. Well, it happens every time, and its always disappointing. Sars, mers, ebola, now covid19. Dont forget, when President Trump was a private citizen, he was attacking president obama during the Ebola Outbreak as were representatives scalise and nowsenator tom cotton. Its wrong and its bad for america, and we have a Serious Health issue that has a 2. 5 mortality rate that is similar to the spanish flu. What made that so serious was the government taking it not seriously. When trump uses words like hoax, when mulvaney used hoax this morning, limbaugh say things [inaudible conversations] charles well, or you know, i dont like equating someone whos a private citizen to someone whos a dulyelected official like nancy pelosi, but its, again, one of these things where, you know, i think it was haas week in the middle of the week when Chuck Schumer suggested that it was too late, that the worst Case Scenario was inevitable because President Trump was caught, quoteunquote, flat footed. Stephanie, thats what bothers me. Now youre telling the American Public that theyre doomed. Yeah. The democrats are definitely taking this opportunity to dunk on the president. President trump, the white house have asked for 2. 5 billion in extra funding. That was met with immediate resistance from the democrats. Theyre obviously not taking this as seriously as they should be. Look, there are so many things we dont know about the coronavirus, but we also dont want to overstate whats happening. If you compare this to flu season, over 14,000 people have died in this years flu season as well as 250,000 people hospitalized. And, yes, theres vaccines for the flu, and its totally different than the coronavirus, but we also need to keep everything in perspective. Charles and also the coronavirus mortality rate for healthy adults is some are saying its as low as 0. 4 . Thats four times the flu, but its not over 2 which i think creates a different level, perhaps, of fear or anxiety. But i want to shift just a little bit, ethan, because a big week for the democrats, and it feels to me after that second debate your party has turned away from Michael Bloomberg as a the great mope great hope and retrained on joe biden. Am i right here . He got the clyburn endorsement, hes polling ahead of bloomberg in florida. It feels like you guys are in love with joe biden again. I always loved joe biden, but youre spot on in your analysis, charles, as you often are. And in this case though very specifically, joe biden is having a rebound. People are getting a little bit nervous as they look at Bernie Sanders within the Democratic Party, especially older members of the party, especially people who have investmentses in 401 k s and are nearing retirement. Theyre afraid of an outright socialist taking over the Democratic Party and whip sawing us back the exact opposite direction from donald trump. We want a moderating, strong voice. Thats actually part of the reason that bloomberg was popular. Bidens been that guy the whole way through. Just by being steady and consistent charles that old joe biden was back on the debate stage, and now hes back in charge. Ethan, stephanie, have a great weekend. Thanks, charles. Charles coronavirus fears wiping out apples 2020 gains, but the stock is off the lows of the session. Susan is live with me now, congratulations on your interview with tim cook. Thank you so much. Apple stock, we did see it bounce into bear market territory, down 20 from recent weeks. Recovering a little bit, but its also one of the first Major Companies to warn they wouldnt meet their sales targets because of the coronavirus which is impacting stores. They had to close most of them in china and also the suppliers and production facilities as well. When i spoke to tim cook and asked him how things are going in the country, heres what he had to say. You know, ipod is built everywhere in the world. We have key comb components in the United States, in china. When you look at the parts that are done in china, we have reopened factories. So the factories were able to work through the conditions to reopen. Theyre reopening. I think of this as sort of the thursday phase of getting back to normal, and were in phase three of the mode. That sounds very positive. Back the our interview, he say sees these as only being temporary, and that was the word that he used. But with apples stock down from recent highs, its also an opportunity for the company the buy them back. Listen. You might be able to get apple at a discount [laughter] well, we are a buyer, right . You know we have a share or repurchase planned, and so, yes this might be an opportunity to maybe up those Share Repurchases for apple. Well, i dont want to announce anything [laughter] on the air, but Everybody Knows that were buying, were buying shares, and if the stock is lower, you buy more shares for the same amount of money. And if apple does buy back their own shares, that also takes the supply out of the market and lifts the stock price as well. From my talking with him and tim cook i dont get any sense of panic. As he said, it looks only temporary. Charles i think they buy, like, 60, 65 million worth of their own stock every day . 100 billion so far in their share repressure. 230 billion of cash on hand, so they they can afford it. Charles once again, congratulations. That was fantastic. Make sure you watch the second part of her exclusive interview with tim cook at 3 p. M. Eastern time. All right, moving into gold, it was a brilliant move this year, its struggled this week. Bonds also seem like theyre finding a floor. So where should investors be looking now . I want to go to kings view Wealth Management cio, scott martin because, scott, youve been sounding the alarm on gold for a long time now. And Alicia Levine is back with us as well. Scott, congratulations. You told people to be cautious, you said shift into gold, and, you know, its been a wonderful, wonderful trade, and people saved a lot of money if they listened to you. But gold has been wobbly this week. Whats going on . Yeah, i felt even better until today, charles. And it happens. I mean, gold did provide. I wanted what i wanted it to do over the first four, three and a half days this week, but theres a lot liquidity rush around this market. The market is incredibly volatile across all asset classes. Not just gold, certainly equities and bonds, so were seeing general rotation. As a gold holder, we still have it, we bought some more today, im glad to see it going down, my friend, because this is part of the ending, in my opinion, of the equity world barf. Charles of course, last time you were mentioned with us, you you were with us, you mentioned stocks as wellment i know that you have some equity positions, and theres got to be some names that look more attractive today than the last time we spoke. Yeah, theres plenty. And frankly, we go back to the names we talked about a week ago which were the invest sows, the invidias, microsoft looks amazing today. Those are areas weve started to pick up again because they put in a blowup type top last week, similar to gold this week. To me, those are areas where we can start taking off some bottom feeding. Even if they go lower, thats okay, because were starting to leg in at these levels. Charles alicia, i do think its interesting in the sense that when this whole thing started, it was all ant china about china being, you know, the central part of the Global Economy particularly as the supply chain, and in the last two weeks the numbers or the data out of chinas gotten a lot better. Whether its data on traffic, pollution, you know, just any way you can measure an economy, its gotten somewhat better. And wall street is largely ignoring that. Whats the news we need to see visavis coronavirus that will get wall so as we sit here, friday afternoon, going know a weekend of uncertainty were actually going to get china data this weekend, get pmis over the weekend so well see pretty quickly what this has done, it is true that if you look at rail traffic and highway traffic and electricity usage its trending upward but its still 60 off the high, so youd actually like to see that move higher. Charles Asset Allocation . We believe ultimately, this is going to be an air pocket that by this summer will be in the rear view mirror, america is still open for business, weve got the greatest corporates earnings will be lower, than what was expected even a month ago, but were going to be all right in terms of the actual economy here in the u. S. Charles scott earlier in the show, i had our friend heather on and i said there are going to be sessions soon when the dow is up 800 points and she kind of chuckled. I dont think thats farfetched. No. Charles theres certain news things that i think could come out and get even if they are just temporary relief rallies. Charles weve had half of those sessions, partly today weve had these 500 point rall ies so she may not be laugh ing but crying if she misses those but ill tell you those sessions are coming sooner than later because if you take your own mental temperature in the last couple days and you felt sick to your stomach about the stock market, i, myself, personally, felt like strangling myself with my cordless phone, those are things that are going to be preemptive to a big market rally that we should all hopefully take part in. Charles i cant to thank you both very very much folks the dow is off 780687 points as i hand it over to liz claman. Liz in a couple of weeks, god willing, well be very excited about these lower prices. In the meantime, thank you, charles again, again charles went commercial free we are not going to be taking commercial break, because hell week on wall street is just an hour away from conclusion, as the markets wrap up, their worst week since the depths of the great recession. The dow which did gap down at the open plummeting 1,085 is off the lows down about 655 points after Federal Reserve chair Jerome Powell at just about 1 3