Transcripts For FBC The Claman Countdown 20240713

Tenyear yield has fallen below 1 . It dropped to a record low of just. 9 . Right now its barely above that at. 98 . Stocks made a brief attempt at rallying but then completely tumbled. The central bank said it was making a preemptive strike to stop the coronavirus contagion from affecting the american economy. The dow started swinging all over the place. More than 1300 points from a high of up 381 points to a low of a loss of 996. As you see, we are down 642 points. The s p is down 71. Of course, the nasdaq, triple digits, down 234. It all comes as President Trump right now is at live picture, right now at a roundtable at the National Institutes of health where he is meeting with all kinds of Health Vaccine experts at the research center. Hes going to then take a tour. Lets listen in. Hes taking q a. If it was necessary, i would do it. Yes. Reporter whats your timeline on further travel restrictions, mr. President . Well, we are looking at different areas and we will make that decision with these professionals. We made an early decision based on a little bit of luck, i suspect, but that was the original decision on china itself. And china in all fairness to them, they never blamed us. It was a tough decision for them but they fully understood. They were very reasonable about it. But that was a hard decision to make but i guess we would have had a lot more people with difficulty if we didnt make that decision very early on. But well be making additional decisions as they arise, i guess, tony. Reporter what about closing the southern border . Is that still on the table . Were not looking at that very strongly. Were not seeing a lot of evidence of that area. We are closing it i guess automatically because we have a very Strong Border there now. We didnt have a Strong Border at all. We built 129 miles of wall and the wall areas 100 secure. But we havent seen any great i dont think we have seen any great evidence that that areas a problem at this moment. We wont have to bother with that at this moment. Anybody . Youre so nice today. Nih. It rubbed off. Say it . Reporter tell us about super tuesday. How youre watching the primaries that are taking place. Well, its going to be a very interesting evening of television. I think its really going to be something. Its got some races going on that didnt seem to exist a few days ago and now biden has come up a little bit and i dont know whats happened with bernie. I think theyre trying to take it away from him. I dont know if thats fair but i guess its politics, when you get right down to it, whats fair. But i think its going to be a very interesting evening of television and because of the time difference, california time difference, its going to go a little bit later than were accustomed to, right . I will be watching. Who would i like to win . Anybody. Ill take anybody i have to. Thats the way its got to work. Doesnt matter. Reporter do you have a favorite opponent . I really just, you know, we have done a great job. We have the strongest economy on earth. Weve gone up, as you know, chinas economy has been hurt very badly, long before this. We have done a really good job and people understand that and im looking at polls that are really good. Whoever it is, it is. Well take them on. We have no choice, right . Anything else . Reporter did you have a reaction to the north korean launch of those missiles yesterday . No, i have no reaction. Shortterm missiles, no. No. Reporter on the afghanistan, was that your first conversation with the leader of the taliban . I dont want to say that, but we had a very good conversation with the leader of the taliban today and theyre looking to get this ended and we are looking to get it ended. I think we all have a very common interest. We will find out about the country itself, but the country really has to get it ended. We have been there for 20 years. Other president s have tried and they have been unable to get any kind of an agreement. The relationship is very good that i have with the mullah. We had a good long conversation today. They want to cease the violence. They would like to cease violence also. Reporter the Afghan Government seems reluctant to turn over those 5,000 prisoners. They may be reluctant, you know. They have done very well with the United States for many years. Far beyond military, if you look at all the money weve spent in afghanistan. Weve spent trillions of dollars, trillions of dollars, and were really a police force, were really not fighting, per se. Its a fight that if we had to, wed win but i dont want to kill millions of people. I dont want to kill millions of people. I think its crazy. And so we will be very, very soon it will be 20 years, and i said right from the beginning, not easy to get out of these conflicts. Very complex in terms of all of the people you have to deal with, including frankly people in the senate, people in the house and lot of people feel differently about things, but i have been amazed at how positive the response is to getting out of afghanistan and to moving on. And i really had a great conversation with him today. Reporter the meeting today reporter guidelines for Nursing Homes given the cluster in washington . I could ask you to answer that question. So actually, we have been educating Health Care Providers really from day one back in january about the need to be on guard against respiratory syndrome and then when we had this case of the longterm care facility in washington, we sent out special alerts to Long Term Care facilities to be very mindful about infection control, isolation, with these most vulnerable of our seniors and other individuals who have comorbid conditions. Thats really what we have been seeing around the world is the prevalence of fatalities have been in the elderly and those who have other forms of medicalfragility, comorbid conditions so really being on very high alert in our Nursing Home Community is called for. Reporter mr. Secretary, could you talk about your meeting with lawmakers today and what specifically they are asking of the federal government, whats their biggest concern . I think its the same concern that we all have, which is getting testing out there rapidly into the community so that we can be testing as many people as possible. As you know, our excellent teams down at the cdc developed the test really in record time, within weeks of getting the genetic sequence back in january, and we approved the diagnostic at the fda under an emergency use authorization in record time. We have been able to be testing at cdc throughout, without any backlog in testing. Our throughput has been great there. We have had 12 labs qualified to be able to do the testing. We did suffer a manufacturing issue on that test as it went out to the rest of the Public Health labs. Weve gotten that issue solved in the last week so thats up and running in the Public Health labs. We also have gotten this test produced by this contractor to get it out so we will this week have up to 75,000 tests shipping out there to Public Health labs as well as available to hospitals who order it. Thats something really important that happened on saturday morning. One of the biggest issues around testing that people dont understand is during the obama administration, the fda for the first time asserted control and regulatory jurisdiction over what are called Lab Developed tests. Before that, if a hospital or lab like quest diagnostics, labcorps, would develop a test on their own with reagents and test, they could just do that if they were a certified clinical l lab, but under the obama administration, the fda asserted jurisdiction and said you have to come to us first and get approval of that test before you can do it. On saturday morning, commissioner hahn issued guidance saying under an emergency use authorization, we are permitting these labs, these Public Health labs, these hospital labs, commercial labs, to go ahead, get the tests going, do your own test, make it available and come to us for approval after the fact. That will make as commissioner hahn said, millions of tests per week available quite rapidly. Liz that is health and Human Services secretary alex azar and President Trump. They are going to continue their roundtable and we do just want to say that the president announced when asked that he was not at the moment looking to close the southern border with mexico because quote, he doesnt see much of a problem there as it pertains to the coronavirus. But the death toll, we do need to tell you, we have some latebreaking numbers here, now rising to nine people in washington state. Nine who have succumbed to the coronavirus. Previous total as of yesterday was that six lives had been lost. Eight of those deaths in king county, home to seattle. Officials reporting a total of 27 cases confirmed in that state alone. As of right now, thats up from 18 cases just 24 hours ago. Weve got this on Ford Motor Company and that stock is dropping about 2. 5 . Ford confirming moments ago to fox business that two employees in china have developed the coronavirus. Ford is saying that both are quote actually Getting Better and as we see ford shares down 2. 8 , this is a 7 stock for the moment. All stocks are still very volatile. We want to warn you of that at the moment. The dow is off its lowest levels which had been a loss of about 997 points. We are down 687. Spain has just confirmed its first coronavirus death. As we know, following a very volatile day yesterday to the upside, we got this announcement, this emergency rate cut that the Federal Reserve was cutting rates before its scheduled meeting by 50 basis points. What does that mean . That is more importantly, what shows us that we now only have four quarter point rate cut arrows left in the Federal Reserves quiver. You are supposed to i donuse th things for major emergencies. Is it truly something that is a massive emergency that is kind of going to cause all kinds of problems when it comes to supply chains and liquidity . Did the fed panic by cutting 50 basis points . Will lowering Interest Rates somehow inspire confidence . Jerome powell said this morning he understands the limits. We do recognize that a rate cut will not reduce the rate of infection, it wont fix a broken supply chain. We get that. We dont think we have all the answers. But we do believe that our action will provide a meaningful boost to the economy. More specifically, it will support accommodative financial conditions and avoid a tightening of financial conditions which can weigh on activity. Liz in essence, the Federal Reserve chief is saying that he is somebody who truly feels that at the moment, we need to be part of a multipronged attack, along with the Public Health institutions. Just last thursday, Guggenheim Partners cofounder and global cio scott minerd joined me in studio and said he thinks the fed will actually wait as long as possible before it acts to reduce rates. So what does he now think of the surprise cut . Joining us again, scott minerd of guggenheim by phone. Scott, what do you think . Ive got to tell you i think we got exactly the outcome that i expected and that is if they cut rates between meetings, the market would see that as perhaps an act of desperation or panic, and the stock market is telling us that it did not really do anything to shore up confidence in the market. So you know, i felt if they waited until the next meeting, you know, that it could be viewed as more of a responsible and routine action, but nevertheless, whether it was going to be at the next meeting or whether it was going to be today in an intermeeting basis, its something that the fed was going to have to do to assure the markets that the policy makers are awake and are prepared to take what action that they can take but even the chairman in his speech today made it clear that they are just one small piece in the equation of what needs to be done. Liz i do have to ask you about the tenyear yield. You want to talk about a massive flight to safety or fear trade, this was it. We can put it up right now and see where it is. It is actually, the good news is, it is off that low of. 98. Its back above 1 . But just barely. We have never seen the tenyear yields fall below 1 . How do you view this . This is not a good thing, is it . Well, no, but this is again i think whats to be expected. I believe the fed is going to have to do more. The market is telling us right now that they are pricing for another 25 basis point rate cut. I think ultimately we will probably get back to the zero bound and you know, liz, the Technical Work that i did last week on bond prices showed that the tenyear note would probably ultimately get to a quarter of a percent and the long bond would probably trade around 1 . Liz what about what happened yesterday . Yesterday we saw the biggest point gains ever for the dow, s p and nasdaq. My question to you right now is do you feel that people missed that entry point now or this is their Second Chance at getting in with stocks a lot cheaper . Well, history shows us that when we have these kind of panic selloffs like we did last week, that they dont just end in like a v reversal. We typically go back and revisit the lows. So i think there will be a chance to reenter if you really want to at the lows that we saw recently. But you know, most of the time, those lows get undercut. And so this move up that we got yesterday was to be expected. There had been comments over the weekend about central bank account activity. Liz we got some telegraphing there. Im just as surprised as the markets and perhaps more alarmed than encouraged. Scott minerd, thank you for getting on the horn with us so quickly. We do appreciate it. Quick check, dow is down 565 points but with 44 minutes left in the day of trade, we are on every single metric that we know truly matters to you. We will cycle through stocks, volatility, gold is jumping at the moment. Oil managed to see another gain, eked it out. Its up 1. 5 in the aftermarket. Gold is kind of a winner at the moment. We see that up about 2. 6 or 42 bucks. Let us bring in a voice that is widely followed when it comes to fixed income. Andy brenner along with our traders at the New York Stock Exchange and cme. Andy, to you, you heard scott minerd was saying that this was not the best idea and it certainly didnt get the intended response. This 50 basis point cut, shock and awe, yes, but its kind of a dud at the moment if they were meaning to inspire confidence. You are absolutely right. This thing that the fed did today was a disaster. Not only did they do it early, 50 basis points, yes, it is shock and awe but what the market needs is not lower rates. The market needs unlimited liquidity. If they had coupled this with quantitative easing, coupled this with opening up the spigot so people dont have to worry about getting money if things start to go sour on the coronavirus, the fed didnt do that second step. That is what has caused the lack of confidence and thats what caused the stock market to be down at one point today, the dow being down almost 1,000 points and the tenyear getting to 96 basis points or whatever it was. Liz 90 . Not even 96, right . Well, whatever it was, i missed a few minutes coming up to the studio. Nonetheless, i think its a total disaster what the fed did and how they did it and they are going to have to open up the spigots, they are going to have to increase the fed Balance Sheet, they are going to have to go to some kind of qe and quite honestly, it wouldnt be so bad if they did what the bank of japan did and brought in the protection team, whereas the bank of japan yesterday bought 1 billion worth of etfs, equity etfs. While i dont think this fed will do it, its certainly not a bad idea. Liz we are showing the fed funds futures for april but we have a meeting before then, on march 17th, andy. Thats 100 chance of another rate cut. How much more do they cut there and we see a 60 chance just a month later for aprils meeting. Liz, the way we see it is they wont cut again on march 18th. Liz they wont . They did shock and awe today. No, i dont see it. As you aptly pointed out at the beginning of the show, they had six bullets this morning. They used two of them. Theyve got four left. You dont want to use them right away. In other words, they are going to be meaningless. Look what happened today. You did two and it did not have the desired effect so why are you going to do it again . Stupidity is when you make the same mistake over and over again, get the result you dont want and continue to do it. You know what, no, i dont think it. But april 29th, yeah. Thats a possibility. We have to see how the virus affects the economy. Liz stay there, andy. John corpina on the floor of the New York Stock Exchange, what do you think traders think will happen in the next 41 minutes . Im looking at the dow, thankfully off its lows of the session if you are a bull. Where are the flows . Is there anything, any buyer out there that you see, or is this just too much of a rock and roll final hour . If you look at our last four or five trading sessions, the last half hour of the day has been the most impactful one. We are starting to see it now. We are bouncing off the lows, dow is up about 500 off the lows, s p about 50 off the lows. What we are expecting is as this momentum moves higher, the algorithms will start kicking in, we will get a Snowball Effect and we could push this market higher here. I dont think the fed got the result they wanted today. The timing was off. They are using all their bullets liz wait. Why didnt the algorithms kick in when we were down 900 points earlier . Youre saying they wait until the last half hour of trade . As the market was getting pressed down we did not break down 1,000 at all. Every time we got to 998, 997, systems brougought it right bac, 50 points in a second the dow moved. The Computers Work both ways. The momentum is going to snowball from there. Liz scott bauer, you not only have your trader hat on but your family hat. Tell us whats going on with your son. He couldnt get back from where was he and where did he fly into and what happened . He was studying abroad in florence and he was actually in switzerland at the time. Couldnt get back to florence once his Study Abroad Program shut down. We had to rent him a private car to get back to florence, him and two friends of his. Finally got him on a flight outside, out of florence back to the states. However, what was unbelievable is, and this was three days ago, when he got into jfk, nothing. No screening, nothing. They knew exactly where he had been. So when i hear the administration talking about they are doing this, they are doing that, weve got screening in place, i lived it. Its not happening. Or if its happening, its happening in a very, very minimal amount right now. That has whats got me scared to the spread of this. We are definitely going to see a spread. Fortunately, most people will be okay. Most people will be okay. But i have lived it with my son and its not fun. Liz that is on the ground anecdotal evidence that at least when flights were coming in from italy or that one, scotts son was not checked for a fever. We are watching it all. Andy, can you stay in the chair . John and scott, i know you guys have to go and trade. We will take a quick break and when we come back, we are all over the markets, of course. We will also be talking about telemedicine. We just had news that not just twitter but vanguard and sales force. Com telling their employees to stay home if they are sick. How are they going to see a dock snore the company thats helping them do that. Stay tuned. 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Call unitedhealthcare and ask for your free decision guide. Learn more about aarp Medicare Supplement plan options and rates to fit your needs oh, and happy birthday. Or retirement. In advance. Liz this just hitting the tape. We have breaking news out of jpmorgan. Jpmorgan reportedly following sales forces sweeping plan with a major move of its own. Jpmorgan is ordering all u. S. Employees to work from home as it tests contingency measures for closing domestic offices, should the coronavirus spread. Right now, looking at jpmorgan stock, it was already down because the Federal Reserve cut 50 basis points off the benchmark Interest Rate and that is never good for financials but the jpmorgan stock is down 3. 25 . Now, why did i mention sales force . 24 hours ago, Customer Relationship management giant sales force. Com put out its coronavirus plan online to reach its 50,000 employees worldwide. Since then, it is fast becoming the template for companies implementing their own plans. For the month of march, sales force is number one, so spending all nonessential travel, prohibiting crossborder travel and asking all employees who experience symptoms of any illness, of any kind, to stay home. They dont want you coming in to work. Today, here in new york, the coceos of shoe company albirds told me during the taping of my everyone talks to liz podcast which drops tomorrow, how all shoe manufacturing operations which span multiple continents and countries from china to italy, have or have not been affected. Listen. We are going to assemble the shoes in shenzhen, china, southern china, and that had a twoweek delay. Essentially, thats it. So really no material impact. Who knows what happens from here. It looks like things are still uncertain in developed economies as well now. Liz i asked about italy. You are near milan. That is a worrisome hot spot. What are you seeing in italy . You know, i think its just its not good. Clearly all the stories coming out of there are not good. But i just dont think we know enough at the moment. Our approach is just to be very very patient. We are communicating often with our team. Liz but as legions of workers are told with jpmorgan just hitting the tape to work from home, particularly if theyre sick, American Well is a company at the forefront of telemedicines emerging role amid the deadly outbreak. American well coceo and president dr. Roy schoenberg joins me live in a fox business exclusive. Tell me what role your company is playing . How does it work . Thank you for having me, liz. Telehealth, telemedicine, our Technology Allows people to use devices that they have, mobile phone devices, to very quickly within a minute or two get in front of clinicians, they can interact with them, the clinicians can actually investigate and have a better understanding of what medical issues they have and the level of certainty or severity of those issues and help them make the next move in terms of acquiring medical services. Liz they can just download the app, correct, and tell us exactly what happens at that moment. I believe weve got some video that shows how you can get right in front of a doctor with your smartphone, your laptop, ipad, whathave you. Thats right. Its actually not more complicated than you describe it. You download the app, often enough the app is made available to you by your Health Insurance plan. You can download the am well app sif itself and you will be matched with clinicians, practitioners who operate within your state who carry a license and are able to take care of you. And you can within a couple minutes be connected to them live. You will be able to see the doctor, they will be able to see you, interact with you, create a record and prescribe medication if necessary for you. Liz okay. Tell me about these doctors. What kind of jump have you seen, any spike in your user base . Yeah, you know, just before we came on the air, you talked about the uncertainties in the markets. In health care, uncertainty especially when you talk about contagious diseases can in itself become a certainty of a very bad thing. If people are going to be concerned that they may have contracted the virus, they will go to where health care is and the result of that will be overcrowding, overwhelming of the Health Care Resources that we have. The beauty about telehealth is that we can actually make health care go to them. We can reassure them, we can get in front of them and one of the things that are amazing about this, while health care can travel over technology, viruses cant. So we have the ability to reassure a very large number of people as to where they are and what should the next step be with their care. Liz the company is American Well. If you need, download the app. Its got urgent care and doctors who can give advice. Good work. Thanks for coming on. Thank you for having me. Liz any time. We are 29 minutes before the closing bell rings. We do have the dow down 573 points. We will whip through some individual stock names that you may own and what they are doing right now. And charlie breaks it next on what the Federal Reserves next move might be in just two weeks. Andy brenner just said no, theyre not going to move. They have to preserve dry powder. Jay powell and company convene on march 17th and 18th but guess what . Tomorrow, canadas central bank meets. The claman countdown will be right back. Look, this isnt my first rodeo. And let me tell you something, i wouldnt be here if i thought reverse mortgages took advantage of any american senior, or worse, that it was some way to take your home. Its just a loan designed for older homeowners, and, its helped over a million americans. A reverse Mortgage Loan isnt some kind of trick to take your home. Its a loan, like any other. Big difference is how you pay it back. Find out how reverse mortgages really work with aags free, noobligation reverse mortgage guide. Eliminate monthly mortgage payments, pay bills, medical costs, and more. Call now and get your free info kit. Other mortgages are paid each month, but with a reverse mortgage, you can pay whatever you can, when it works for you, or, you can wait, and pay it off in one lump sum when you leave your home. 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Eastern time, americas benchmark Government Bond yield, the tenyear, took a dive to never before seen territory, below 1 , and eventually touched a new record low of. 90 . That has absolutely slayed financials from jpmorgan to goldman sachs. Look at morgan stanley, thats down 4 p . Bank of america, we dont have wells fargo up there but that too is struggling. Financials, the biggest sector laggard on the s p 500. So we thought lets get in one of the top economic gurus of the entire planet earth, mohammed allal erian. We know you have a flight to catch. We wont take too long here. We want to know why the feds intended effect is completely not happening at the moment. It cut 50 basis points hoping to inspire confidence and the markets are down. We got the dow down 684 points. Obviously, the tenyear is gyrating in the wrong direction. Two reasons, liz. First, its because the fed doesnt have a tool that addresses the problem. The problem is that people are not interacting with each other. It doesnt matter how low Interest Rates go. It doesnt make you want to travel. It doesnt make you want to go to a conference. It doesnt change the fact that people hesitate to interact. That has been compounded by what you reported which is companies telling you to stay home. So the fear factor is building up more and more. The second reason is that the market simply wants more. Even the fed thought it was surprising us by 50 basis points, an emergency cut between meetings but guess what, the markets immediately priced in more. Thats a problem, is that markets have become too greedy when it comes to liquidity. Liz what do you think . Should they have done more . That would only leave us with three quarter point cuts for some other exogenous event. Who knows what north korea is thinking right now, lets get the United States, they are struggling, they are down at the moment. Anything could happen. No, i wouldnt have done more. In fact, im not even sure i would have done 50 basis points for two reasons. One is as you point out, you have less flexibility going forward. And two, we are going to have pockets of illiquidity, of market dislocation. I would like our fed to have dry ammunition to address market malfunction. They can do that if they have policy room so i wouldnt use my policy tool on something that i cannot solve. Liz where are you seeing fragileity in the markets . I want people to know the dow is now down 800 points. I worry about two areas. One is something people hardly ever look at, the triple b minus, these are Investment Grade Companies Holding on to that status and that risk being fallen angel falling down to high yield. If that happens, the high yield markets cannot absorb the volume and what that will do is start creating more dislocation throughout the marketplace. Thats one. Two, is what you are seeing today and last week, including fridays much better session, which is liquidity is not as bad as people thought it was. Thats particularly true for emerging markets, for various segments, that people have believed we have more liquidity. Keep an eye on liquidity risk. Liz really. You know, Charlie Gasparino is here. We know you have to go. He wants one quick question. Liquidity risk is major. Charlie how you doing, mohammed. Quick question for you. Is this the black swan the markets have been waiting for for years, like something wild, exogenous and that you cant measure and could cause a massive selloff . Its certainly not unthinkable. It certainly damages economic and corporate fundamentals. My biggest worry, thank you for bringing it up, is for long time, we have been driven by just one of the three engines we need and that is liquidity. We havent had very attractive valuations, we havent had good fundamentals. The reason why we were willing to embrace liquidity is because we believe Central Banks were not just willing to help, but able to help. I worry that this may be the shock that makes the marketplace revisit this enormous faith its had in central bank liquidity. Keep an eye on that because if that happens, elevated asset prices will have to converge much more quickly. Liz mohammed elerian, thank you for getting in the chair with us at the claman countdown. Stay healthy, stay safe. Charlie is right here. Charlie, you foreshadowed todays emergency rate cut just last week here on the claman countdown but also, what jpmorgan was going to be doing and that was telling all employees to stay home for now. Charlie right. I think mommihammad hit on this. One of the reasons the markets did not embrace that rate cut is because it was very much signaled. We reported it on thursday, i believe, that essentially traders were saying as you see the markets are somewhat coming back now but people were talking about an emergency rate cut. Clearly all the smart money believed it was coming. So what you have is at a time when the markets hit a real bottom, looked like they hit a bottom, i think it was friday around, i dont know, 2 00, 3 00, the dow was off about 1,000 points, thats when you saw people starting to rush back into markets and start to buy. So you knew there would be a snapback monday. So the question is, the snapback monday, what was it related to . It was related to a lot of traders believing the fed would ease liz and the market was oversold. Charlie oversold. Now you have to now the markets recoil. This is if you are an investor and you are playing this day by day. I will get into a longer term situation in a minute. The markets recoil and say what is going to be the impact of our gdp and ultimately corporate earnings of that as mohammad said, people dont travel, people dont communicate, people dont do business. Well, that will be lower corporate earnings and people just dont know how much lower. Liz we already reported yesterday that more than 100 Conference Calls and corporations had mentioned the word coronavirus in discussing an impact or their numbers. Can we put up leaders and laggards . Charlie i would just say this. Again, jpmorgan has taken, as we reported friday, steps to work from home. Everybody is talking about working from home. You know, this could be a big deal for gdp or it could be a big nothing. Thats what the markets are grappling with. Liz it could end very quickly. Charlie it could end quickly. I should point out a couple things. We are getting end of month numbers from the big hedge funds. Some hedge funds are doing very well. We understand citadel was up 4 year to date, was up about 1 just in february. In a crumby market in february liz the s p, to compare, down succeeds year to da 6 year to date. The russell is down 10 year to date. Bitcoin isnt doing well. Thats supposed to be flight to quality. Bitcoin at [ speaking simultaneously ] charlie also up is steve cohen slightly for february, up 1. 72 year to date. We are getting these numbers from banks who track these things for their clients. Liz anyone gaming what the fed will do on march 17th and 18th . Charlie you get a million different answers. I will say this. Mohammad made the point, you made the point, at some point, how much more you going to cut . Because you get suppose we do run into a recession. There are things called economic cycles you are supposed to use, these rate cuts are supposed to be used for. What can you do then . You can go out and literally print money. Liz andy brenner, you still in the chair in utah . Andy brenner had said just about 38 minutes ago the fed will not move on march 17th and 18th. Join this conversation, andy. Hey, charlie. How are you . Charlie andy, how are you . Good, thanks. Look, liz, i think the fed only has a certain number of bullets when it comes to rate cuts and thats four, four remaining. I dont think they need to i dont them four on march 18th. Maybe on april 29th. But you know, what the world needs, what the u. S. Economy needs right now, what the markets need, is liquidity. They need to know the fed is there to provide liquidity. Whether they want to provide it through quantitative easing, whether they just want to increase their Balance Sheet which is somewhat the same thing, we need liquidity. The bank of japan showed it yesterday. We need more liquidity and thats what it is. We dont need lower rates. As everyone has said including mohammad whatever, lower rates isnt going to make people go out and spend whatever. We need liquidity. Once we get through the liquidity the markets will bounce back. Charlie when you talk about liquidity liz qe. Charlie what are you talking about . I think the fed has qe, the fed has to make it known money is available for all banks for whatever circumstances. Liz andy, its not working. Whatever they are doing, today was a hash tag epic fail. They cut 50 basis points but they didnt do it. All they did was lower rates. Charlie isnt there plenty of liquidity out there . It seems to me the real question is the real economy as opposed to the wall street economy. Listen, i know they converge and they often do, they do every day, but if you think about it, theres plenty of liquidity out there. Whats not out there is people going out and buying and shopping and traveling. That to me, its not like you have 1,000 point moves in the dow like its a hot knife going through butter. You have the tenyear going look, the tenyear started the year at 1. 92. According to what liz told me today, it went over 100 basis points through that. This is like a hot knife going through butter. Theres no liquidity out there, charlie. The banks cut back on what they have charlie you are saying, you say liquidity, theres no one buying on the other end, more or less . Theres no one stopping it, theres no one, you know, mitigating the huge moves. Thats what we need. We dont have that. Until we have that liz let me make one point. I will use axp as an example. Why yesterday was American Express a screaming buy and today, it is a sell, down 4. 33 . I mean, this is not a rational market, folks. If you have a Shopping List and you are looking for cheap names and yesterday, as you saw the market spike and you thought missed tahat bottom, you have another chance to buy. Am i correct, andy . Absolutely, liz. We use the 20 bear market, once we got the 10 correction, we look at the 20 bear market. So far we are holding. We are holding at high yield spreads, holding in corporate spreads. I think we are going to be okay. But boy, is it going to get nasty. Liz weve got to run. Charlie if you are the average guy or gal, what do you do . I said this on fox news the other day, im not a financial adviser. I dont give people advice, but just common sense. If you rode this market all the way up and you got this thing where its a complete its really an unknown, wouldnt you go into cash a little bit . I dont know. Sleep at night, put your money im not saying sell everything. But if you are in cash and nimble, when this thing gets really cheap, you can start buying. Liz andy brenner, we will let you go. Thank you very much for joining us. Andy brenner of natalliance. Charlie, thank you. We have to talk about amazon. Is it getting caught in the coronavirus market whirlwind. Not necessarily in a bad way. Shares are ebbing and flowing and ebbing. We can look at amazon at the moment, see how it is trading. Im going to pull it up. Down 1. 75 after popping 4 yesterday. Jefferies calling the online retailer a potential big winner in the coronavirus outbreak. Why . As preppers, is that the new word for hoarders . Give me a break. Charlie what is that . Liz somebody preparing for the apocalypse. As preppers far and wide turn to the ecommerce giant for key supplies. Same situation with costco yesterday. That stock jumped 6 . Amazon says it is adding new warehouses closer to big cities to help speed up same day deliveries. Charlie i will buy some vodka. Liz im going to buy brie cheese, hunker down. You know, were not all total nervous nellies here. For those who watch the claman countdown faithfully, i know a lot of you are out there, you know these stockpiling efforts did not just start this weekend. Our producers captured these images of empty store shelves in cvs and duane reed back in january, january 24th, because i had gone to a fort lee duane reed to pick up something and the masks were totally sold out, more than a month ago. Fast forward to this past weekend, take a look at the scene at costco. Retailers across the nation really became the beneficiaries as americans filled up and lined up to buy food, cleaning supplies, bleach, despite the virus inspired rush, costco and walmart getting hit by targets disappointing full year forecast after the discounter missed on previously lowered revenue expectations in the fourth quarter. Can you take a look at this one. We have one of the Main Companies benefiting from the stockpiling effort. That is clorox. Its not on the screen. There it goes. All right. Clorox is down 2. 33 even though they are the guys that make the wipes and other disinfectant products. It was jumping to a new alltime high this morning before falling in that selloff and by the way, that selloff is deepening once again today. We are now down about 800 points at the moment for the dow jones industrials. Amazon grocery delivery, how many of you picked up the phone and said could you just deliver . Well, it is coming in handy for one of our floor show guests who right now is joining us from his home on an island north of seattle. Keith fitz gerald is now selfquarantining along with the rest of his family. Keith joins us now along with Matt Cheslock and phil flynn. Keith, explain to our viewers why you are selfquarantining and how is it going at the moment . You bet. Thanks for having me. We are selfquarantining because my wife and our oldest son have recently returned from japan, where obviously the coronavirus situation is very very serious. We figure we didnt want to be that family that introduced the virus to the community if, in fact, any of them developed symptoms. So far, we havent. But you know what, precaution and abundance of precaution is probably merited which is why we are doing this. Liz tell me how you are managing. Because there are quite a few people out there who think if i have to do what keith is doing, what did you do, what didnt you do that you wish you had done to prepare yourself for this . Well, tell you what, we saw this coming. I remember vividly the avian flu in china because i was there. I remember sars, so i have been in japan, i have seen whats happening there. We started buying ahead of time, started buying masks and disinfectant andaerosoland we have stockpiled. We havent gone to prepper lengths but we are being intelligent about this. So you really now are turning to things like instacart and companies that can deliver to our house with no contact. Liz i tried the old let me buy some purell off amazon. That was saturday night. Yeah. Theyre like delivery march 28th. Matt, give us a sense of what you are seeing in these final eight minutes of trade. Eight minutes of trade left in the session here. Look, the last couple days we have seen the last ten minutes have moved the market significantly. We had a huge disconnect friday. We saw massive rally take place, almost 8 off the lows from fridays lows to yesterdays high. I would anticipate some wild activity. We are not sure the fed is done at all down here. We dont think they provided any clarity at all. I think thats why the market is really sket skittish right now. That why we are seeing it trading into the lows at the close. Liz will people kick themselves if the market moves up higher because the bulls came out of their hiding places saying i missed it, i should have done it during the claman countdown when they said this could be yet another entry point . How often do they kick themselves when they miss the claman countdown . Thats every time. Shame on them. They deserve it. No, just kidding. Listen, absolutely, i was listening to mohammad elerian and listening to everybody and im like wait a second, guys, you know what, the Federal Reserve made a major move today and even if you go back to quantitative easing, if you remember, i remember, you and i were on the air when that happened and the market initially acted negative, like it was a terrible thing but it turned out to be a major bottom in the market. Even though people can argue whether or not this is going to solve the problem, its not going to cure the coronavirus, its not going to make people move. But i do know this. You dont want to fight the fed and you dont want to fight global Central Banks. They are telling you they are going to do whatever it takes to stimulate this economy. I think in a way it might be overkill. It is creating a little more panic than maybe this thing is worse than it really is, but i think we are going to get through that. When they start doing liz you know what . Refi your home. Pick up your phone. You dont have to leave your house to do that. Rates are going down. Gentlemen, thank you. Keith, good luck to you and your family. Thank you very much, liz. Liz how much longer is your quarantine going, keith . We think about the 14th or 15th if everybody proves healthy. Were enjoying being a family again. A long time since weve been together this closely for so long. Liz making best of the situation. We wish you the very best. I want to say we do have bank of canada tomorrow. Well see if they cut rates. Then weve got ecb and bank of england next week. Were watching all of this very closely. Were watching Minnesota Mining and manufacturing, also known as 3m. They make the face masks. Theyre falling to a multiyear low ahead of Vice President pences visit on thursday. Kristina. What is going on . Kristina were seeing massive part of the selloff. We know they signed a massive contract with vp pence. They will make 35 million more masks per month. That created a huge up swing in the share price. 3m is plummeting as the we see across the board the dow is down 721 points. The stock for 3m is coming closer and closer to 50 week low which is 134. We talk about 3m. I want to continue with the coronavirus theme right now, uber, uber seems a little bit of a bright spot. We her people may not want to get into unuber or lyft vehicles or go to shows yet the stock is climbing higher. Has to do with analyst note from needham. We acknowledge the airport ride could hurt near term but management speaking later at investment conferences we think addressing the impact more likely puts a floor in the stock. They believe with uber could potentially already close to a bottom. It can only up swing from there. Two major swings or two major stocks were talking about. Dow up down 800 points a lot of confusion with the traders what is going on with the fed cut. Back to you. Liz investors are taking the under on over under here. Theyre alarmed by this. The dow is down 800 points. The video on your screen is from moments ago. This is President Trump after his roundtable at the National Institutes of health. He toured the vial pathogen sis lab where they look at pathogens like the coronavirus. He is with dr. Anthony fauci, first and last word in big vaccine situations and certainly viruses that are pandemics and i would remind everybody the World Health Organization has still yet to call this a pandemic but they did say today, covid, the coronavirus has a 3. 4 death rate. Seasonal flu, folks, kills far fewer. Lets bring in somebody with a lot of money, to see if he is picking up nails on the cheap. We bring in the 73 billiondollar man, brandywine Portfolio Manager jack mcintyre. Hi, jack, three minutes left. Tell us what youre doing . Well, actually weve cut back on some treasurys. This is a tough environment because youre getting a lot of panic reactions i think. I like treasurys for a long time. I think todays move in treasury yields is probably an extreme. So we actually cut back on some of our treasury positions. Well see how things sort of play out. Youre right, fed cutting rates today, i think the fed was in a tough spot. The market priced in the fed to cut. The fed had to do that or run risk of disappointing markets. Well they disappointed markets anyway. Liz disappointed . More like freaked out. Yeah. Liz you say youre cutting back on your treasury positions. Which part of the yield curve . The long end of the curve. You know, i think the price action was indicative after market come too long. Having said that, we have to make an assumption. We are making the assumption that this coronavirus, as you go in what you just said, this will be a very bad flu. Well come out the other end. We have a lot of stimulus, monetary, fiscal. Eight months from now, i think Global Economy will be much better footing. We could see better growth. Liz i noted that the Australian Dollar fell to an 11year low day before yesterday. You like it here. You also like malaysian bonds. Give me a sense why the aussie dollar, australia is considered almost a proxy or a benchmark for china activity . Youre right. That is actually an excellent point because china has gone through this. They still have a ways to go but theyre doing a lot of stimulus. Theyre coming back online. I think next two or three weeks will be critical, as china workers are back online, if we dont see ramp up in new cases, were going to see better growth. [closing bell rings] liz jack mcintyre, brandywine. Appreciate you coming in front of the cameras on a very volatile day. We end off the lows. That is it for the claman countdown. I will see you 5 00 p. M. On bulls bears. Melissa wall street under pressure. All three major averages sinking on coronavirus fears after the fed slashes Interest Rates amid the escalating outbreak. The dow down 793 points, still settling out there, just one day after the biggest one day point gain in history. S p 500 and nasdaq closing in negative territory. All three major averages ending down more than 2 . Im Melissa Francis in new york. This is after the bell. Connell . Connell im connell mcshane. Were broadcasting from charlotte, north carolina. What a week it has been for the markets already. Happy super tuesday today