Transcripts For FBC Varney Company 20240713

Dow hit its alltime high of 29,568, just 16 trading days later its down 3,400 points. Keep a little perspective here. Yeah, thats a big and rapid drop, but were not at this point in a bear market. We are going to open down 700 for the dow, 80 odd for the s p, 270 for the nasdaq. Its a friday. Remember that. Its important. There will be some reluctance to hold stocks over the weekend because you simply dont know what virus headlines will greet you come monday morning. Now, heres some positive news on the economy, which is having no effect on the market. 273,000 new jobs added last month. A blockbuster report. But that report looks backward. The stock market looks forward. Larry kudlow will be addressing this coming up on the show today. And we expect to hear from President Trump shortly. Last night at his town hall on fox, he had a calm demeanor and on the virus he said we have plans for every single possibility. The campaign trail. Elizabeth warren has not yet thrown her support behind either biden or bernie. Maybe shes looking for the best deal. Speaker pelosi says there was quote, an element of misogyny as in sexism, in warrens loss. Bernie has a russia, make that a soviet problem. The New York Times has documents showing he cozied up to the soviets in the 1980s and they used him for propaganda purposes. Whoa. Big show coming. Let us get on with it. Watch this. It certainly might have an impact. At the same time i have to say people are now staying in the United States, spending their money in the u. S. And i like that. You know, ive been after that for a long time. You know that. I have been saying lets stay in the u. S. , spend your money here and theyre doing that. Theyre sort of enforced doing that. So its going to all work out. Everybody has to be calm. Its all going to work out. Stuart the president has indeed signed the virus funding bill. We will get tape for that for you very shortly. Jonathan hoenig, market watcher, joining us right now. Why should our viewers care about the historic low on the tenyear treasury yield . What does it mean for them . Its sending an ominous sign. The president is right, stuart, certainly we got to keep watching fox business for Larry Kudlows comments and for the president s comments as well because those will move markets but the bond market is sending a very ominous sign. The fact that yields continue to go lower and lower and lower here but also globally. All of the government bonds in germany are now negative yie yielding so in germany you buy a 30year bond, you will be guaranteed to lose money for 30 years. Many are concerned the u. S. Is headed in exactly that same direction. Low Interest Rates in a very slow economy is a big fear. Stuart do you think we are headed for negative Interest Rates in america . Every economic textbook thats ever been written, there are month chapters on the negative Interest Rate. It simply has no precedent in economic history. Its happened in japan, in europe and boy, we are getting awful close with these historic plunge in yields and where stocks go, ironically, the more people are prompted to want to seek any safe haven even if its yielding only. 3 . Stuart as i see it, yields down and stocks down, thats the relationship at the moment, isnt it . Absolutely. This is i dont want to say capitulation because its early in the day but we are seeing this type of throw everything out, toss everything and pile into the safe havens, the government bonds and of course, gold now at a fresh multimonth high. Stuart hold on a second. We dealt with the treasury yield, with the stock market. Look at that, minus 720, bottom righthand corner of the screen. Come in, paul conway, former Labor Department chief of staff. The jobs report, 273,000 new jobs. The rate, 3. 5 . Thats a blockbuster report but paul, you know it, it looks backward, not forward. It does look backwards and tell you what, along that line, it also looks back and revises the numbers in january. You now have two months of 273,000 job growth, you have this still historic unemployment claim, low number, and the unemployment low number at 3. 5 . I think you are taking a look at a picture in hindsight before Coronavirus Impact of a very strong and robust economy and very tight labor market, which bodes well for anything that we need to absorb. But again, i think this issue of the virus and the president ial leadership that will come with it and the leadership of governors in all sectors as we start to address this as a country is fundamentally important to Public Confidence and public trust in our institutions. Stuart paul, i want you to look forward for me for a moment because you were involved in federal responses to emerging events and external threats. Do you think the Federal Reserve or the administration should pump money into Ailing Industries or pump money into the economy . I think in the calculations that they go through when they take a look at different models of risk, and potential impacts, i think those will probably be some of the discussions and recommendations that come up to look at. When actually somebody makes a decision to engage on that will involve a lot of other factors. But i think what they are going to take a look at right now is the fact that the country has to be nimble in its response. We dont know what we dont know, literally, and that the president has an opportunity here to keep convening the people, thanking the professional staff stuart again, sorry to interrupt, but do you think it would be a good idea, im not talking a bailout in the classic sense, but just propping up some industries which are clearly ailing because of the virus . You think its a good idea . Well, tell you what, i think thats something that you need to be very very careful about because we are still in the initial stages and you dont know all the industries that might be impacted. I think you have to take a look at the sequencing of it. In terms of options on the table, the president will be given all options. Ultimately it will be his call on what to do based on the advice of Business Leaders and other economic advisers that he has with him. Stuart by the way, the president at the signing of the virus funding bill, he did say the Federal Reserve should cut rates now to stimulate the economy. He did just say that. All right, paul. Let me look at the market. Weve got, what, 20 odd minutes to go before we open up this friday morning. We are going to be down all across the board, 750 down for the dow, 95 down, 96 down for the s p, big drop down there for the nasdaq. Thats what were looking at right now. Jonathan hoenig, any idea, is this the capitulation day, the washout day where everybody gets rid of everything and we go straight down . Well, it certainly looks like it could be shaping up to be that. Its going to shock us, when that day finally comes, it will certainly shock us. Could be 1500, could be, i dont want to be hyperbolic here but it could be a couple thousand point day. These 1,000 point swings in the dow, we have gotten accustomed to it but its important that everyone goes back to his or her own individual context. Truly, if you are in your 20s, 30s, 40s, i remember the 1997 asian contagion, that financial crisis. At the time it seemed like the world was ending. Just a few years later we kind of looked back at it and chuckled. We will do the same thing now even though some of these numbers look quite dramatic. If you are in it for the long haul, now is the time to stay in it for the long haul. Stuart very good point. We have a lot of viewers who are indeed in their 30s and 40s and theyve got a 401 k . This could be a pretty good time to switch out of some areas and maybe take more risk, because you can buy some bargains at these levels. What do you think . It never seems like a great opportunity when the skys falling, but as the adage says, you want to buy, its a little offcolor, but buy when theres blood in the streets. Theres tremendous blood in the streets. It doesnt mean it cant get worse or stay weak for quite some time but the president is right. The virus will pass. Companies will improve over time. Those who bet against the market over the long term have always lost. Stuart paul conway, still with us. Ive got a question for you. You used to work there at the chief of staff at Labor Department. We are getting a lot of reports of people working from home. Some companies are demanding it, actually. Microsoft is recommending it. I think this is something thats going to spread. Does that affect the economy so much . I actually think the economy is pretty resilient on that. One of the lessons we learned, one of the things that the private sector did quite well after 9 11 was introducing more workplace flexibility, especially on telework. Its tougher to manage, you have to have talented managers, but youve got upwards of 40 to 50 of the work force that has access. Most of those are white collar jobs to telework, and that type of thing. I dont think it would negatively impact the economy in the short term. As you take a look at longer term, Industries Like services, where telework may not be as much of an option, in fact, markedly less of an option for workers, you could see some impacts there. I think again, as you are looking long range, i think you can absorb it, you have the flexibilities. The president s own work force, the u. S. Civil service, just this week has encouraged all agencies to make certain that telework is part of its plans and they should be part of their emergency and Contingency Planning for pandemics and other things like that. Stuart okay. I want to stick with the virus funding bill which the president has just signed. Dr. Marc siegel is with us. 8. 5 billion i think it is. Where does that money go . Where do you think it should go . First, about 3 billion of it will go to research and development for vaccines and antiviral drugs. Really important, because we are really on the cusp with that. Theres at least ten different candidates for vaccines. We talked about it on the show. Antiviral drugs, remdesivir, i talked to the clinical director of that, thats very promising. We need the money for that. Thats 3 billion. Another 2 billion or 3 billion will go into testing. As you know, there hasnt been enough testing. We talked about that. Weve got to make testing widely available to not just rule in people for coronavirus but to rule out people who we fear could have it just to say look, we dont need to quarantine you or isolate you, you dont have it. We need to be able to do that on a daily basis. Those are two big ticket items here. Stuart good. Now, we were told we were going to get a test, reliable, quick test very quickly, distributed around the country. Have we got it . We are starting to. We are starting to get well stuart were not there yet . No. We are getting one where you will have the results within several hours, not within five minutes. Stuart when will that be widely available . Right now as we speak, its becoming available widely in state and local health departments. Stuart all across the country . Right. Stuart how many . Its supposed to be up to a million. Were not there. We are lucky if we will get 100,000 by the end of today. Stuart i ask the question were not there yet. Not only that, i want to add another criticism. Not only that, we dont even need it in state and local health departments. We need it in hospitals and labs that i can access. If i send it to the new York City Health department, which now has it, i may not get it back for a couple days. I want it right away. Stuart im looking at the Economic Impact here. I see the test coming, we dont know exactly when we are going to get this mass testing id say next week. They are really pushing on it. The Vice President is really pushing. Stuart thats all good news. But when you get that test and its widely distributed, you will have a lot more cases revealed. That will appear in the headlines and i think thats having some impact on the financial market. It will have a huge fear impact. We need to tell people right now those tests are those results are already there. People just dont know about it. These wont be new cases. There is definitely, definitely hundreds and hundreds of cases out there that are positive with mild illness that people dont know about. Stuart hold on for a second. I want to discuss the case of jamie dimon, the emergency surgeon he has. I know you know more about that. Right now, want to tell you the market is way down, as we approach the opening bell. We are about 20 minutes away. 700 down for the dow, 100 down for the s p, nearly 300 for the nasdaq. Oil is way down. Gold is up and the yield on that treasury is down. Now, more headlines from what President Trump was saying at the signing of the virus funding bill. Laurens got it. Lauren the president said the Federal Reserve should cut and stimulate the economy. That would be a marriage of monetary stimulus, more coming, rates going even lower and then fiscal stimulus which might really help get things going. Stuart thats the thing. Lauren you might hear that next week because as these kits, as you were saying, we dont know when exactly we are getting the kits but the numbers are going to spike as we can test more, thats going to be jarring for the market. He also said we should have the lowest rate by far, lamenting the fact other countries are [ inaudible ]. Stuart jonathan hoenig, you heard that. The president pushing for rate cuts by the Federal Reserve and also, maybe some fiscal stimulus. Thats what intrigues me. The idea that you can pump some money into the economy regardless of Interest Rates, put the money out there. What say you . I will give you an example of a country and economy with a slowing economy, aging population and 0 Interest Rates. Not america, its japan. They have been trying this in japan for the better part of 20 some years. Fiscal stimulus, makework projects, ultralow Interest Rates, it hasnt helped yet. On this, i think the president respectfully might be a little mistaken. Ultralow Interest Rates are not a sign of a Strong Economy or strong credit, they are a sign of a very weak economy. I think thats exactly whats prompting the drop in the stock market today. Not even weak fundamentals. We got that jobs number, the economy fundamentally is very strong. But when we see Interest Rates at 1 ,. 75 , thats sending a very strong message to investors, the economy is not as strong as we perhaps think. Stuart doc siegel still with me. Ive got what might be a rather strange question for you. As this virus spreads, does the weather in america make any difference to it . I think it does. That will affect the economy. This is per jonathans point before. You take a look at singapore right now. Theres only 117 cases. Know why i think that is . Again, theory, not fact. Its 85 degrees in Singapore Today and chance of rain is about 85 . High humidity, high temperature, low virus, low respiratory virus. 117 cases. South korea, 40 degrees today, zero chance of rain, cold, low humidity, over 6,000 cases. Stuart you think that i think thats why we have a flu season. We have a flu season because in april, it starts to get humid and starts to get hot and respiratory viruses dont travel as well. If that ends up being true, im piggybacking on jonathans theory, we may see a recovery and see less and less virus. Stuart thank you, doctor. Stay there, please. Got a lot more for you and want to hear about jamie dimon. Give me a couple seconds. Im going to go back to politics. Paris dennard is with us, black voices for trump cochair and trump 2020 senior adviser. Paris, it seems to me that black voters, africanamericans, really control who is going to be the democrat contender in the election. Am i right . You are absolutely right, because thats why you have seen so much attention that has gone into south carolinas primary and the nevada caucus, so the democrat has a strong hold or historically with the black vote and they know that any democrat nominee or candidate who wants to be president of the United States has got to do very well with the black community, which is part of the reason why i believe Hillary Clinton did not become the president , because she had horrible numbers, comparatively speaking, to president obama and past democrats in places like florida and other places where she needed to perform well. She did not do well with the black community. They did not trust her, they did not believe in her message, so thats why joe biden was banking so heavily on the black vote. Thats the base of the democrat party. The other thing about the black vote on the democrat side is they turn out. They are a reliable voting bloc. But the good news is for the republicans and for President Trump, and for black voices for trump which im proud to be part of, is that President Trump and his message, his inclusive message is making a difference. Its impacting the lives of the black community and they are coming over to the republican side because of what President Trump is doing on a regular basis as president of this country. Stuart i find this fascinating. I really do. Thanks for joining us. Ive got to get back to the market. We are 12 minutes away from opening up today and we continue to move south. Now we are looking at an 800 point loss for the dow and over 320 points down for the nasdaq composite. 833. 840, to be precise. What are you telling me . All right. Cant hear you. Jonathan hoenig, it looks like a washout at the opening bell. One of the factors playing into this, you alluded to jamie dimons heart surgery. We of course wish him a quick and full recovery. But the banks are in many ways, at the nexus of all this. I saw northern trust, credit suisse, the systemically important banks, all at 52week lows. Thats a worrisome sign. A couple months ago, the Federal Reserve told us how well capitalized the banks were. But they are really at the nexus of this in many ways, suffering from ultralow Interest Rates and what we are seeing is a lot of credit instruments, junk bonds, those are starting to crack up and banks are exposed to those as well. We wish jamie dimon the best of luck but jpmorgan is going to need it and the rest of the banks are pulling the market down this morning as well. Stuart i see your point. Let me go back to two key indicators. First of all, the yield on the tenyear treasury, as we were saying, this is the ultimate anxiety indicator of the moment. Look at it now. Down 20 basis points. In bond market terms thats gigantic. Deirdre if you think the safest bet is the safety and security of the u. S. Government and if that goes against you we all have bigger problems but that is that vote saying i dont know where else to put my money. Stuart we are at. 71 . The actual low this morning was. 69 . These are traumatic times. Lauren . Lauren going back to the equity market. Remember monday, we were up almost 1300 points, then down on tuesday, up again big on wednesday, down on thursday . So this would be the second down day in a row which we havent seen all week. The markets are actually up between 2 and 3 this week. Just giving you perspective of the strong jobs report, the state of the u. S. Economy, this virus is a wild card but we are up on the week about 100,000 Coronavirus Infections worldwide, 55,000 recoveries. Deirdre thats really the point. When jonathan talks about germany or japan, they do not have the same gdp growth we have, they do not have the same Consumer Spending strength we have which is twothirds of our gdp, even right now we are spending on clorox and wipes, we are still spending. Stuart we still have at this moment a Strong Economy. Remember, please, we have that jobs report came out at 8 30 this morning. Its a blockbuster. 273,000 new jobs. The rate goes down to 3. 5 . Okay. Thats backwardlooking. Looks back at february. It doesnt tell you whats coming up in march, april and may. But it means that youve got a cushion. Youve got a Strong Economy to start with. Okay, it will be chipped away at by the virus but nonetheless, youve got a cushion. Thats where we are starting. Lauren we have to look at weekly claims Going Forward to see how the coronavirus affects hiring decisions and if there are layoffs particularly Going Forward. With the job market being so tight, you think a big company is going to lay off a talented worker because of this coronavirus . We dont know deirdre even microsoft actually saying they are actually not laying off the people who work in their cafeteria. We are not even talking about programmers. They are just saying we are going to continue to pay you because we dont want to have to go back and pay more for the same kind of work. Stuart they raise a very good point. Paul conway, i hope you are still there. Companies in whats going to be a slowing economy, they are not going to want to lay people off because the labor market is so tight. I wouldnt expect a wave of layoffs, would you . No, not at all. In fact, this is where people like to kick around the term human capital. This is actually the practical side of it. These companies have invested in trained workers and they now have them as part of their culture and production, part of their bottom line. They wont turn around on a dime and simply cast somebody off because of a Current Issue in the news. I think they will look and again, there has been a fundamental shift in how labor and people work with technology in anticipation of all types of different circumstances. This is going to actually be a test of all the things that we have learned over the past 10 or 15 years about being nimble, having a work force and making certain that you retain your talent as an element of your business. Stuart we have two minutes before we hear directly from President Trump. I will use those two minutes to give you the news about jamie dimon, americas top banker. Emergency heart surgery on thursday night. Hes recovering nicely. Doc siegel, what happened to him . First of all, deirdre and lauren brought up a really good point. He had Radiation Therapy back in 2014 because of his throat cancer. Know what that does . That can weaken the wall of the aorta. What is the aorta . The big artery coming out of the heart that feeds the brain and the rest of the upper body. Stuart did he have a tear . He had a tear, called an aortic dissection. Its about 200,000 people a year. Stuart for the benefit of the audience, whats the symptoms . Chest pab pain, shortness of breath, pain radiating to the back. You go to the emergency room, we see a strange looking ekg, do a cat scan and diagnose it right away. Youve got to get into surgery right away. Only 80 make it through the first month. Its a very dangerous, dangerous situation. You put in a graft, artificial. If he makes it through the first month he has about an 85 chance of living more than five years. And a greater than 50 chance he will get back to work. I would say in his case, more than 50 . Stuart we wish him well. Thanks for that information. Good stuff. The market is way, way down. We are about to hear from the president. I think this is the tape from his virus funding signing, where he does mention the Federal Reserve. We will roll that tape momentarily. Here we go. [ inaudible ]. So we are signing the 8. 3 billion. I asked for 2. 5 and im getting 8. 3 and ill take it. Okay. So here we are, 8. 3 billion. Its an unforeseen problem. What a problem. Came out of nowhere. But were taking care of it. We have big news on the ship, lot of things are happening on the ship, people are being tested right now, and i just spoke to the governor of california, gavin newsom. We had a good conversation. Were both working on the ship together. Its close to 5,000 people so big ship. Were doing testing on those people, okay. Could i have those other papers im going to sign, please . Is there additional papers relative to various things. [ inaudible ]. Do you have anything to say . I just want to make it clear that in terms of tests, we have provided all the tests to the state of washington and the state of california that they asked for. The production and shipping of tests that weve talked about all week is completely on schedule. All of the cdc tests, the tests that are available to test 75,000 people, cdc has shipped to americas Public Health labs. Those are out. That private contractor working with cdc to ship to the private sector and hospitals has already shipped enough tests for 700,000 tests and the remaining lots are arriving at cdc this morning for Quality Control and should get out as we forecast this weekend, then next week we will keep ramping up production, so as many as four million tests next week are going to be driving forward. So everything is on schedule for the tests. Reporter mr. President , why arent you going to cdc today . He actually sent me. You can tell that. We may go. They thought there was a problem at cdc with somebody that had the virus. It turned out negative so were seeing if we can do it but yesterday afternoon, we were informed that there may have been a person with the virus, and they now find out that that was negative test. Theyve tested the person very fully and it was a negative test. So i may be going. We are going to see if they can turn it around with secret service. We may be going. Here, this is for you, after covering me so well for so long. First time i have ever done that to a reporter. Reporter [ inaudible ]. Job numbers just came out and theyre incredible. The job numbers were tremendous. We picked up close to 80,000 new jobs from last report. If you add that up, its over 350,000 jobs. Job numbers just came out a little while ago. They were shocking to the people that were analyzing them. Reporter do you expect more gyrations . I think a lot of people are staying here and they are going to be doing their business here, they are going to be traveling here and they will be going to resorts here and you know, so far people come but we will have americans staying home instead of going and spending their money in other countries and maybe thats one of the reasons that the job numbers are so good. Weve had a lot of travel inside the usa. Reporter do you think your Administration Needs to take more action to diminish the risk of recession . Well, all we can do is do what we do. I mean, we are getting a lot of business from people staying, which ive always liked anyway. Youve known that for a long time. But people are staying here and spending their money here as opposed to going to europe and other places. Now, that will change when this goes away and hopefully that will be sooner rather than later. But people, i would say virtually everybody, you saw the job numbers, i guess, people were shocked because you add another 80 or whatever it is, a lot of numbers from last month where they upgraded so the job numbers were a level that nobody thought possible. They were really incredible. Reporter stimulus . I dont know. We will see whether or not the fed wants to stimulate. In my opinion, they should because europe is and china is and everybody is but us. I have a fed that is not exactly proactive. Im being very nice when i say that. [ inaudible question ] i think what happens is the fed should cut and the fed should stimulate and they should do that because other countries are doing it, and it puts us in a competitive disadvantage and we have the most prime. We are considered by far the most prime and its our dollar that everybody uses. The fed should stimulate and they should cut and why should germany have an advantage over us with Interest Rates . So germany Just Announced theyre stimulating and theyre cutting. Asia is, all over asia, they are. China is. China is tremendously. Were really not. And we pay higher interest, we have a higher rate and its ridiculous, frankly. We should have the lowest rate by far and instead we pay more than other countries. Other countries are paying zero and less than zero. You know it very well. And we are paying interest which is a very conservative approach but its not a good approach because were also competing against other countries whether we like it or not. Even our friends, we are competing against. [ inaudible question ] eventually countries have to take care of themselves. We cant be there for another 20 years. Weve been there for 20 years. Weve been protecting the country. We cant be there for the next eventually they will have to protect themselves. This should have been done a long time ago. But you can only hold somebodys hand for so long. We have to get back to running our country, too. You understand that. [ inaudible question ] stuart the market is now open and as expected, we have opened sharply lower. A loss of about, what, 750 points for the dow industrials as we speak. Ive just i point out the president made two important points there. He said look, weve got, we are shipping 700,000 tests right now. Next week, four million tests will be shipped. Thats good news because now youve got a test, whos got the virus, who doesnt have the virus, you can probably expect more cases to be revealed but now youve got the test and its moving forward. Point number two, the president says the fed should stimulate. Everybody else is, why doesnt we. Thats not had an impact on the market which is still down as we expected it to be down. All the dow 30 stocks are in the red except for one which has not yet opened, travelers. You can say this is down all across the board. 789 down for the dow as we speak. Thats over 3 . Okay. Lets move on. Take me out to the s p 500. Where is that . Have we got a 3 loss in the s p . 3 down there. As for the nasdaq, this is the home of technology stocks, where are they . Down 3 . Youve got a 3 drop for the major indicators. Big tech, all of it, on the downside, way down. Microsoft, apple, google, amazon, facebook, all down. When you Start Talking percentage losses, you know youve got a selloff on your hands. At the moment, we are down 800. Next group of stocks, let me see the cruise lines. Man, have they had some bad publicity recently. It continues. Carnival is down to 26 a share. Off another 5 . Royal caribbean, 7 down. Norwegian, down 5 . They have already taken a huge hit this week. The airlines, same story. They have already taken a hit and are taking another hit today. Very significant losses. Do you believe American Airlines is down to 14 a share . United, delta, jetblue, southwest, all of them on the downside. Car rental stocks, Morgan Stanley warning of significant earnings setbacks for the Car Rental Companies because of the virus, that is. Hertz, avis, down significantly, 9 p 9 drops for both those stocks. Starbucks say they are seeing early signs of recovery in china. Their loss, however, continues, down 4 . Youve got your hand up. Lauren they are also warning that as business gets back to normal in china, they expect Second Quarter sales there to be down 50 from last year. Its a slow recovery that they are seeing so far in china. Stuart down 50 . The stock goes down 4 . Thats entirely understandable. Zoom communications, virus fears making more people work from home. So the stock is down 3 . Clorox, where is that . Clorox is okay. Its down. Lauren 1 . Stuart over the past couple months, its up 13 , i think it is. Look at that chart. Its up, maybe a little profit taking today but it is up. I also want to show you rekitbenkaiser, a maker of cleaning products. Look at that stock. Its down today a bit but look at that stock. The climb is straight up. Netflix, we call this a cocooning stock. Thats what you do when you cant leave your house for whatever reason. Its down after a very nice move up. Moderna is up 3 today. Thats the company that makes the vaccine. Stuart thank you, doctor. Coming to my aid on the market. Moderna is up how many percent . 3 . Stuart its a vaccine company. Got it. We still have jonathan hoenig, greg valier, scott shellady, lauren simonetti, deirdre bolton. Greg, i like the sound of what the president just said. 700,000 tests shipped this week, four million shipped next week. That sounds to me like an administration which has a handle on the virus. What say you . Obviously they needed to get up to speed and it looks like they have impressively but at the same time, the feds not going to bail us out of this. I think the administration has to look at fiscal options. There may be Companies Including airlines that are going to need federal help. Stuart you think thats likely . Im going to ask larry kudlow that when he joins us at the top of the hour, 10 00. Do you think thats likely that the money will be coming into these distraught industries . As larry knows, washington specializes in one thing, spending money. I do think that if it looks as if this is getting worse, theres going to be a look at some tax cuts, some aid to people who are unable to go to work, temporary measures including even lifting tariffs. I think theres a large basket of options that are now under consideration. Stuart jonathan hoenig, if we went for any of those options, all of which pump money into the economy, would that be good for the market . I think you have to draw some distinctions here. Removing tariffs are removing taxes, would be a benefit for the economy. Slowing spending in my opinion would be a benefit for the economy. But starting to step in, if we get to a point of now starting to bail out companies once again, ive looked at for example some of the u. S. Steel stocks that are down since the president s tariffs went into effect, we mentioned the banks a few minutes ago, if we start to get in the position, if the market deteriorates where the government starts to bail out companies, i think thats a terrible ominous sign. What that does is prompt a liquidity dryup. I think the Global Financial crisis, the fundamentals were weak but also liquidity was pulled out of the system because of the bailouts. Lets hope the Trump Administration does not go down that path. Stuart scott, i want to bring you into this. When you Start Talking about money pumped into Ailing Industries, you are talking bailout. Thats a very ominous thing because it reminds you of 10, 12 years ago, doesnt it. You think it will be a good thing to pump money into Ailing Industries . Im going to be the Debbie Downer and say no. This is what it is. Theres a lot of smart people out there and ive got an egrarian background so i have a common sense way to look at things. Everything that you just mentioned, if any of those things are going to take ma and pa smith out of the house and have them go to a Football Game or restaurant or public gathering, then do it. But i dont care if you cut Interest Rates 2 today. Theyre not coming out of their house because theyre scared. Chinatown here in chicago has been slammed. Nobodys going there. Those types of things you just mentioned arent going to alleviate peoples fears. It has to be about the virus and the virus only, if you ask me. Keep an eye on how many cases. If that starts to trend lower, are people getting better, that starts to trend higher, thats when the market will get better and things will get better. But you cant throw money at a problem which is psychological. Stuart okay. Greg, look at the pricing of this market, down another 3 today. Is this Market Pricing in a recession . Is the market saying we are going to recession . It sure looks that way, but theres two markets. Theres the equities market thats gotten slammed but you look at Interest Rates right now, i think we are on the cusp of a dramatic refinancing boom in america with rates this low. Stuart dramatic refinancing boom. Are we seeing the start of it . Weve got the yield sorry, not the yield, the rate on the 30year fixed Rate Mortgage all the way down to 3. 2 . It could go further south. Adjustables, you are in the 2 range. You think thats going to really come on strong with a refi boom and mortgage boom . You going to see that . I think its a de facto tax cut. Absolutely. We have all refinanced probably half a dozen times. You can do it again at much lower rates. It puts money in peoples pockets. Stuart do you see any positive impact, let me go to you, scott, do you see any positive impact from the sharp decline in the price of oil and therefore, the coming sharp decline in the price of gas . Well, i have always said thats the fastest way to put money in consumers pockets because they fill up their tanks once, maybe twice a week. I know i do. Thats going to go immediately into their pockets so thats great news. Then weve got manufacturing, especially mining, thats going to suffer from the back of that. They also had very good jobs numbers here today, too. That could be, you know, the opposite side of that effect. They were a real big reason we got out of trouble in 0809, was really the oil fields really got us where we were going. So i would say this. Its all about the virus and no matter what we do, that has to be fixed first. I know we can throw the kitchen sink at this problem but remember, ma and pa smith have to be able to be comfortable coming out of their house. Until theyre not, were not going anywhere. Stuart let me talk something positive here. That would be the cushion which our Strong Economy as of right now, it is a Strong Economy, a cushion which may see us through the next few months as the virus hits. We have a very Strong Economy. See that jobs report today, up what is it, 273,000 new jobs, and more new jobs added in january that we hadnt reported previously. The price of gasoline is coming way, way down. You are probably going to have a refi boom and housing boom. All of that is positive. So greg, is that the kind of cushion that we really, really need and which other societies dont have . Fully agree. Unemployment could go up a full point to 4. 5 and thats still a damn good rate. I think the economys foundations are so strong that when we start to come out of this maybe by midsummer, late summer, you are already starting from a really good place. Stuart paul conway, same question. Have we got a nice cushion to see us through the next few months . I think we absolutely have a fine cushion. Look, this is the difference of policies of a generation of opportunity as articulated by the president versus policies that denote a generation of dependency. Right now, the consumer in how they are viewing the virus, i have to tell you this, one of the lessons you can take out of all the previous crises we have gone through in 20 years is this. The president can impart the sense of urgency on behalf of the consumer and the citizen but you need to elevate the scientists, get them on television and be able to talk to people because i think the American Public can absorb and understand risk but they want qualified information they can take the tough stuff as long as they can comprehend it and put it in context. I think their behavior will come in line. I think you got to get the scientists out there talking straight and make certain the president is seen as driving the urgency across the entire stake holder community. Stuart scott, to you, please. You say this is all about the virus and you are absolutely right but im looking at the president , a relatively calm demeanor last night at the town hall. He said look, we got a plan for every possibility. This morning we hear from the hhs secretary alex azar, you got 700,000 tests going in now, four million next week. I find that reassuring. Do you . Yeah, unfortunately, it seems like we cant even err on the side of caution anymore. We have to err on the side of hysteria. You are exactly right. This economy in the u. S. Is the only economy that can really handle whats happening to everybody else around the world with this virus. But can i just bring in one more smell test, okay . We are all extolling the virtues of how great the economy is and what a fantastic jobs number this is. We just cut rates half a percent. We are probably going to do it again in two weeks time. That doesnt smell right to me. We got to be careful about using all our bullets we might need down the road on trying to fight a virus which these lower rates wont help. Stuart i hear greg, you are saying yeah, right. Rate cuts dont cut it, so to speak. The fed is going to run out of ammunition. I fully agree. I also agree with the other speakers on the panel. This is a psychological problem. I was on a flight from toronto to d. C. Two days ago. The flight was onethird full. How many cases do you have in canada, two, three . I think people are grossly overreacting to this. Stuart is the market overreacting, greg . Well, its hard to say markets are wrong. You cant fight the tape sometimes. You have to respect that. But i think if you put this in perspective, 30,000 to 40,000 people a year die in auto accidents. There has to be some sense of proportion here. Yeah. Stuart jonathan, are you seeing the bottom here . You cant invest in the market based on how many coronavirus attacks or symptoms are announced. Its not a successful, profitable way to do it. My fear is not necessarily that the cases will spike. We are fortunate, most of us, to live in the United States, still the most individualistic, best health care in the world. My fear is this coronavirus pushes the global economy. Youve talked about the bond yields all morning. This is my fear, that the coronavirus pushes the economy writ large into a recession, long term recession, short term recession, one that leaves the broad market basically in a flat line for a couple years. We saw it in 2000 after the financial, the tech stocks imploded. We saw it in 2008, a period of basically moribund stock prices. Thats my fear moving forward, not that everyone will get the coronavirus but the economy at least could be chilled for the better part of the next couple years. Stuart we have been open now in the market for 14 minutes. Dow is down, s ps down, nasdaq down, about three Percentage Points for all of them. Big tech, i cant find a group of stocks, an Industry Group that is up. They are all on the downside. We do have that flight to safety which is pushing the tenyear treasury yield all the way down, right now its about. 70 . It had been. 69. There you go. It touched it again. Now youre at. 695 , down an astonishing 22 basis points. What have we got on the gap . Kristina, closing their new york city offices . Kristina yes. This is their headquarters in new york. This is because an employee has tested positive for the coronavirus. They found out on march 5th so they have asked all of their employees at their headquarters, not the stores, to stay home and work from home. You are seeing most of the Retail Sector is being sold off with coronavirus fears. Gap is down almost 2. 5 at 13 roughly. On the bright side, there is other news from gap. Gap is appointing the old navy boss to take over gap as the new ceo on march 23rd. Two little nuggets on gap this morning. Back to you. Stuart i want to turn to doc siegel. You heard the news there. Gap has a problem with its headquarters. Its employees there are being told to stay home. I knew about that last night. One of the employees there tested positive, on 55 thomas in new york, and everybody is being told to work from home. Fear is rampant there. The risk depends on how close you were. Stuart thats what im getting at. If you come in contact with someone, youve got to stay home. That ripple effect, isnt it, thats a ripple effect. Because every place that the person would have gone to, they cant go to the store, cant go to see their doctor, cant go anyplace. Thats where they actually have the virus found. Imagine the idea that the airlines as we are saying are empty now or concerts are being canceled or in seattle, schools are closing. The fear is so out of proportion to the medical risk right now that thats whats choking down the economy. Thats going to continue. Then you Start Testing people like next week with all these kits going around, you get a few hundred cases and its going to have an enormous ripple effect. Stuart is it the right thing to do confining people to their homes . Is that the way to contain it . You contain it, im if you actually know you have a case of the virus, it makes sense for people who are in contact to stay home, to decrease the amount of spread of an emerging contagion that we as Public Health officials are trying to get control of. Thats it. Not this idea of having no gatherings or no meetings. We will be doing this show from home pretty soon. Stuart in these big Office Buildings in new york city, one person gets the virus, everybody who works in that Office Building told to stay home. Thats an overreaction. Stuart thats overreaction . Thats overreaction. I only want people to stay home who may have come in contact with that person. Works nearby them. They could have kneed s e sneez. Its called contact tracing. To close down a whole building or whole block or whole concert or whole school is a vast overreaction. I had a case recently where somebody flew to seattle, came back from seattle and the school said you know, the persons spouse is a teacher here, theyve got to stay home for two weeks. Im saying wait a minute, the whole city of seattle . They have like 20 cases. Vast overreaction. Stuart youve got to contain it. By containing the people who are in contact with the people who actually have it. Stuart okay. Only. Stuart got it. Steve cortez is with us, America First action pac. Whats the politics of this, steve . You are on the political side of things. I know you are a market watcher as well. Give me the politics here. Look, i think the political reality is this. The United States, theres a lot of unknowns ahead. Theres clearly challenges ahead economically. But the United States enters this crisis in a position of incredible strength. We know that from the jobs report we just got this morning, and we are in that position of strength because of the trump boom, because of the policies of President Trump, so we enter this particularly compared to the rest of the world with an economy that is ready to handle this challenge, with the expertise and the will to take this on. Im very glad that the u. S. , particularly compared to the rest of the world, has the economic momentum coming into this crisis to handle it. Stuart okay. Bryant brenberg is with us, professor of economics, i do declare. Thats right. Stuart we have been saying all morning weve got a real strong cushion with this economy. Lower gas prices, mortgage refi boom, here it comes, very strong jobs report for january and february. Is this a Strong Enough cushion for us to carry us through without a recession . Even though you dont know the full impact of the virus . Look, you dont know but that is about as good a cushion as you can get. It wasnt just january and february. It was also revision up in december, wages are still strong. The question is what does this mean for potential bounceback. We dont know the answer to the question when will we get this contained, but when we do, when confidence is restored, how ready is this economy to move back up. These kinds of job numbers suggest the economy is ready to move back up. Theres a lot of confidence coming into this situation. Stuart do you thinthink the fel reserve or the administration should be pumping money into the economy either by tax cuts or just liquidity, shoving it in . Would that be a good thing . I am always in favor of looking at the tax code again and finding ways to make it more effective, make Business Investment more attractive. I dont think the fed has a lot of power here. We saw them cut this week and the market shrugged it off. Money supply doesnt seem to be the issue. But some stimulus on the tax side could be very powerful. Again, the point is how do you get businesses reinvesting when this goes away. Everything that you can throw at that is helpful. Stuart okay. Let me recap again. First of all, can you show me, please, the yield on the tenyear treasury . I did notice that as it slipped back down into near historic record low territory, that was. 69 look at that. We are at. 67 . This is the ultimate anxiety indicator. This tells you that money from all round the world probably by the trillion of dollars, trillions, plural, of dollars, pouring into our treasury bonds, pushing up the price and the yield comes down. That is an historic low. 67 . As that yield came down, so too did the stock market, because you got money going into treasuries and out of stocks. Right now i think we are down 824 points on the dow industrials. Thats better than 3 . In fact, youve got a better than 3 loss on the dow, the s p and the nasdaq composite. While ive got you here, thats a real anxiety indicator. 67 . Yeah. Look, theres so much uncertainty here, especially around, you said it earlier, the question is how quickly do you get it contained and how quickly do people feel confident about that. This is a psychological issue. That number is the psychology of the market right now. They want data, not headlines. What they are getting right now is headlines. Stuart im going to go round the block for all the experts we have assembled on this program to go through this. My question is simple. What signs, what positive signs should we be looking for, what will be the signal that we are close to a bottom for this stock market . First of all, greg, please. Well, you reduce the number of new infections. It looks like in wuhan, its starting to level off. If you see this levelling off start to take hold around the globe, thats the signal. Stuart scott, whats the signal that we are close to a bottom for the market . I totally agree with greg. Its not going to be economic, number of new cases and the number of people that are getting over it and getting healthier, and they are out there, speaking about what their symptoms were. When people see that its not the boogeyman they think it is, thats the bottom. Stuart paul conway, what to you is the signal the economy is bottoming out . I mean, look, its expanding right now. Whats the signal we are at the bottom . I think the best signal for this, stuart, quite honestly, is you had the president on television, you had the scientists on television and people are consuming the information and they consume the information about the impacts of the virus on the most atrisk population because Good Governance will equal good politics will restore confidence. Thats kind of the bottom line here. Stuart on a day when we have a sea of red, that means everything is down, im going to go to the New York Stock Exchange and kristina partsinevelos, who i think may have a couple of bright spots. What do you have . Kristina yes, i do, stu. Thats what i was looking for this morning so we could take a break from the doom and gloom. Start with enzo biochem. You see it on the screen, 3 so its a cheap stock, but its up 34. 5 right now. That is because as of next week, they are going to be testing a new covid19, they have released a new test, more specifically at the molecular level. They will be working on that next week. They Just Announced it. Hence the reason you are seeing the upswing in the stock price. Another bright spot for you, euro euronetices, up 14. 5 . This is nothing to do with the coronavirus. This has to do with a device they are working on to help with bipolar depression. In 2008, they were working on a treatment for any adults that didnt react to drugs. This is another device that could possibly help with bipolar depression. I want to end on this little nugget. Ge missed out bigtime on this upswing because ge sold over 800,000 shares in q4. They were investing in neuronetics. They are missing out on this upswing. Stuart thats a nugget and a tough one at that for ge. Thanks, kristina. A moment ago i saw the price of oil dropping to 43 a barrel. Yes, it is down there. Ouch. Lauren this is 6. 4 slide. They had that meeting in vienna, opec producers, they wanted to cut production. Russia said no. Now oil is extending the losses on that news. Its also a demand issue. If we this weekend will be key, how nervous people are. If we are nervous at all, do we stay home and hunker down or do we go in the car and fill up the gas tank and go to the Movie Theater and Shopping Mall. Oil is reflecting that. Stuart 42 a barrel. The downside there is American Drillers dont make a profit if you are only getting 42 for your barrel of oil. You dont drill so much. Thats whats happening there. Steve cortez still with us. I understand mr. Trump will visit the cdc as originally planned. Thats today, i think, right . Im very glad to hear that. Look, hes now a wartime president. That is just the reality. The enemy is not some invading army, its a virus on one hand. He has to do everything he can, including visits like this to the cdc on that front, but then theres also the intangible part which is so important. The other enemy is fear. He needs to convince americans like a good wartime president that we have nothing to fear but fear itself. He needs to be reassuring. He needs to be the cheerleader in chief for america. I think hes done a very good job of that so far but i think he needs to even accelerate it Going Forward. The more we see him, the more we hear from him, the more reassuring he can be and his team can be, the more we then defeat that enemy of fear because it is a wartime footing right now. Stuart sure is. Jonathan hoenig, back to you. I know that you are a fan of gold. You have been recommending to buy it for some time. But i dont understand why it hasnt really zoomed. In times of crisis, it goes straight up. Right now, its still, what, under 1700 an ounce. What gives . Interestingly, a lot of the gold stocks, precious metal is up today but a lot of gold stocks are down. These are big moves. Big moves take time. You know, a lot of analysts are calling for alltime high of gold, that would put up at least a couple hundred dollars higher from this point. You know, what i can tell you, the history of gold from say 2000 to 2012 it went up every sing year and there were many News Headlines over that period, there were wars and Terror Threat levels, et cetera, election jitters. The big moves take time and theres a lot of News Headlines over those big moves. Gold isnt up today but i still think longterm you will see prices significantly higher, even if the virus or i should say when the virus does get resolved. Stuart scott, as a longtime trader, would you want to hold stocks over this coming weekend . When you havent got a clue what kind of virus headlines are going to greet you come monday morning . Well, im starting to see things that have been normally higher like you mentioned clorox earlier in the show. When you start to see those things get washed out, when they had been doing okay because of the virus, you got to start to think we are starting to get close to the bottom here. But at the end of the day, you have asked everybody on the panel what they think would be the end or how we would tell. Not really one of us has said its going to be a monetary issue, more Interest Rate cuts or targeted company bailouts. We have all said its a psychological issue, its all about the virus, and i agree with steve cortez. The president is in the middle of that war now and being out in front of it stuart greg, are you seeing signs of a washout . No and to make a quick comment, stuart, as you well know the people of london in 1941 and 1942 they had a stiff upper lip and acted with great bravery and what if somebody in america said im not going to go to the movies because my uncle was in seattle . Weve got to toughen up on this. Stuart do you think were panicked, greg . Yeah, yeah. Stuart lauren what do you got lauren speaking of the panic i have Young Children and im constantly getting emails from their gyms and play groups saying what they are doing to disinfect, there are two private schools in manhattan that are closed and also one in paramus, new jersey that are closed because they had to disinfect the schools or there was a basketball meet and at the meet there was someone who might have been infected so there is, i hesitate to use the word panic but theres precaution out there and its pretty heavy. Stuart ill tell you what im doing this weekend actually what im doing tomorrow and i live in the state of new jersey and im going to go to two Grocery Stores that i know in the state of new jersey and im going to a Shopping Mall in the state of new jersey and im going to new york state to watch woodbur y collins, its an outlet mall which usually attracts tens of thousands of people from europe and asia because the prices are so cheap and ill do my own little tiny research there. Whats foot traffic like in the weekend . Whose laughing there is that you jonathan . Im not laughing but stuart im anxious to hear the results of your analysis is. So much of what goes on at the mall, talking the cruise lines and airlines have been killed but this week ive also seen stocks like macys and kohls, costco and facebook is the only retailer doing well in this environment, people stocking up on the hand sanitiz ers et cetera and it does look like Many Americans are going to stay home for the malls so were awaiting your analysis early monday morning. Stuart why is everybody laugh ing at my Mini Research operation . Lauren go do it. Stuart scott are you making fun of me . No, its the stiff upper lip that was mentioned earlier right carry on and keep shopping, right . Stuart all right, everybody, here is the story. It is 10 00 eastern time, and were going to recap whats been happening this morning and in the last half hour, when the market opened being look at this it is down acrosstheboard weve got a 3 drop almost now, down 692 on the dow, thats what 2. 5 and youre down 2. 8 on the s p and the nasdac is down i cant tell is that 2. 75 yeah, Something Like that down, down, acrosstheboard. Earlier, 8 30 eastern we had what im going to call a blowout jobs report. 273,000 new jobs added in the month of february. That is what im calling a blow out. That is a very Strong Economy, but that report looks backwards. It looks back to february. It doesnt look forward to april , may, and june, when we get the impact of the virus. White house top economic guy larry kudlow, hes going to be joining us, moments from now, i want the very latest from him. Outside the stock market, the other dramatic move is this. A huge drop in the yield on the 10 year treasury. It has hit historic lows. A few moments ago we were down to. 67 never seen that never come close to that in all my time of doing this and thats over 45 years. The price of goldman it investors see it as a flight to safety and its up 16 at 16. 84 was that not exactly a blowout, can it backtrack a little i want you to listen to what the president had to say about the jobs report. Roll it please. President trump well the jobs numbers are incredible. The job numbers were tremendous, and we picked up close to 80,000 new jobs from last report and if you add that up its over 350,000 jobs. Job numbers just came out a little while ago, and there were shocking to the people that were analyzing them. Stuart all right, two minutes past 10, the market is still down, down, down, however, im not going to suggest weve hit a bottom, that be a foolish, foolish thing to say, but we have not gone below an 800 point drop. Okay . I think thats worth pointing out i know were only 32 minutes into the session but we havent gone that low. The low of the day was a minus 825, 830 i think it was. Brinberg, as in brian, still with us. I want to get back to the jobs report. I dont want to diminish it, it was terrific. I dont think its been baked into the market and people dont know how to make sense because its backwardlooking but its not just backwardlooking when you have three months leading into this virus scare, where jobs numbers are that strong which means confidence is strong that means something about our ability to come out of this , markets are not paying attention to that because they are so focused on headlines around spread, but as they bake that in , i do think it starts to inspire confidence. 273,000 jobs in february, revised up in january to that same number. Stuart we are, you know, 10plus years into a recovery wow. Thats a number we should not be seeing. Stuart okay put your wall street hat on. Do you see any sign of a bottom for the stock market . I think weve been bouncing around that 800 drop number and i think that is meaningful we havent wanted the press past that. I do think part of that is some of the confidence of the jobs number, investors are fighting between the fear and the possibility that we have a very very Strong Economy. Thats the battle youll see them going through in the coming days and weeks. Stuart i just want to inject a little perspective here. The Dow Jones Industrial average reached its alltime record high on february 12. Thats 17 trading days ago, and that alltime high was 29, 568. Look at it now, 25, 438 so youve come down, do the math, 4,000 points sounds like a lot. And it is. Its 11 maybe 12 its a very rapid decline but a little perspective. Were not in a bad market not even close to a bear market at this point got to go down another 2,500 points before you hit that bear market okay . Little perspective what do you got . Lauren i got more perspective today is the 11th anniversary of the bottom of the market. The bull market started 11 years ago today. Would any of us make the argument that the coronavirus killed the market 11 years in . Stuart thats a good question let me ask the folks here, scott , do you think that the virus kills the bull market which has been running since march, whatever it was, in 2009 . Its a long expansion. I think the best i would say is that it could stall a bull market. Were going to be with it until we start to see these virus cases go down, so it could stall , but i also know that with the jobs number youre exactly right. Thats a great example how good the economy is and just think about it stuart. Thats the direct result of trump tax cuts, less regulation and a deal with china. Thats the direct result so weve got a great cushion it just could stall things. Stuart steve cortez come in please. Do you think the virus kills the bull market . Oh, gosh, no listen, i think things might get worse before they get better but by no means is the bull market done not on wall street and main street. I also want to point out about a detail which i think is critical 42000 construction jobs added thats in addition to 49,000 construction jobs added the month before in january. Thats fantastic news for the country because that means the very people that President Trump promised to deliver opportunity to, the economic underdogs of america, a lot of them minorit ies those people have been benefiting the most from the trump boom, the hispanic jobless rate for example, stuart now has been below 5 for 22 straight months under President Trump. Prior to President Trump, there had been one month ever with a his pan hispanic jobless rate below 5 way back in 2006 during that housing boom so that tells me that he is in good political shape domestically, that his policies will maintain into his second term because there will be but we have challenged ahead and he has to be a war time president right now andrea sure that the American People that we come into the situation into this crisis in a position of strength and that we can handle it because were american. Stuart brian, i think the president will move heaven and earth to avoid a recession and even a slow down as we head to the election and that means i would not be at all surprised if they jacked in some money at the various industries, lowered rates and do everything they can more importantly, i think people know that he would move heaven and earth. He is so committed to this economy and so committed to jobs and wages. Thats the kind of thing over time that brings people back. They have a president who has their back in the economy. Stuart is greg still with us . Yes. Stuart greg thank you very much im glad youre still here. Same question. I think the president will move heaven and earth to avoid a slow down certainly a recession and that means he will do anything he possibly can including putting money in the economy, urging the fed to lower rates, its a full court press to support this economy isnt it . Watch the trial balloon stuart over the weekend i think there are a lot of things floated to boost the economy. One other quick point. How is this for irony. This unemployment report was so strong this morning, had it not been for the virus, i think wed all be sitting around wondering does the fed have to raise rates by summer . Stuart good stuff, good stuff now, i want an update on the cruise lines, specifically news on Royal Caribbean have we got it . Yes, Royal Caribbean owns the princess cruises, which has had just problem after problem, whether it was the one that was docked off the coast of japan, or on our west coast but they are now instituting this cruise with confidence policy so if you are a guest and you have a cruise booked basically you get credit for your entire fare, you use it when you like, lets face it this company had to do this , to hold on to its business, they say it applies to new cruises, it applies to existing cruises, so whatever you want to do, they are just saying were going to give you your money, you choose when you use it. Stuart that might have helped the cruise lines a little bit on the lefthand side of the screen , deirdre, Royal Caribbean is up a little, norwegian is up a little, Carnival Cruise lines is up a little but still below 30 a share but nonetheless a minor league comeback. Okay the National Guard delivered medical kits to a cruise ship and weve got the video. Lauren its stunning video that comes from the california National Guard and they are delivering in these white boxes the coronavirus test kits to the grand princess cruise ship theres 3,500 people on that ship about 100 are showing symptoms. They need to test them. They arent allowed to dock until Everybody Needs to be tested is tested. The doctors on the ship will administer the test and send them to the lab in california and then well know something, but already, they are making an effort to see who exactly has what. Stuart full core press, can you show me the airlines please because were talking here about depressed in down industries apart from the cruise lines nobody suffered as much as the airlines ive got a report this morning from lufthan sa, the German Airline have canceled 7,000 flights cutting back their capacity by 25 , they have to. Nobody is flying what you got lauren . Lauren the trade group says it be 113 billion hit to revenue for Global Airlines that parallels what we saw during the financial crisis. Also a quick note from the wall street pointing out none of these airlines are firing people or laying people off, which is what we saw after september 11. He mentioned that as a contextual point, they are cutting capacity and down flight s you do have unions, pilot unions refusing to fly into certain areas, but no one has been laid off. Stuart im looking for bright signs and looking for any possibility that weve got a bottom or approaching a bottom for the market. I see the airlines now moving up , again its not a huge gain by any means, delta is up, jet blue is up but american its up look at that level 16 per share okay, what is that . Okay, more video of the National Guard delivering supplies we got that . Okay there you go. Look, its good to television, we like video and when youre making an effort to get the test out there to a cruise ship thats struggling with 100 possible and the reason why stuart thats a cruise ship full of people. The reason why california declared a state of emergency yesterday, right there was one passenger on one of these cruise s who they think, not entirely clear, but who did catch the virus who did pass away, i will mention without minimizing her death it was an older lady who did have an underlying heart problem. Lauren imagine being on that cruise ship though and seeing test kit come down from the sky essentially and then you have to go to the doctor there and wait for the results . Stuart on that story about test kits we heard from hhs secretary this morning, standing right behind the president as the president signed the virus funding bill, and alex told us that youve got hes shipped 700,000 test kits, thats this week and next week, you get 4 million. So what im trying to get at here, im sorry you got your hand up there is what im trying to get at is action is being taken, the president in a calm demeanor is reassuring everybody that something is being donald he did say we have plans for every single possibility. Now trying to put a floor into the market but im trying to come out with the positives on this virus. Thats big news next week when you talk about that many test kits and how much more data thats going to give us and how prevalent this is. The downside of it potentially is people look at the increase in the number of cases, and markets panic but i actually think markets ought to look at that favorably. The more data we get on how fatal this is the more markets can bake that in and they can actually react positively so the more data the better thats what the test kits allow. Stuart just coming into us now a president ial tweet ill read it for you. Well protect your Social Security and medicare, just as i have for the past three years, Sleepy Joe Biden will destroy both in very short order, and he wont even know hes doing it. Okay, now thats the president changing the subject away from the virus and the market and the economy and turning to straightforward politics. That was the tweet we just received. Recap the market, down 750 for the dow. Thats not quite the low of the day, but we havent gone lower than a minus 820, so im not going to say were coming back not going to say anything like that at all. It is a friday. Remember that, please, because on a friday, you want to be Holding Stocks when you dont know whats going to happen come monday morning. Scott, did i hear you rumbling away there . [laughter] yeah this is like a bad george or well movie i cant believe were watching scenes of them dropping test kits on a cruise ship. Next year at this time, stuart, lets make a deal. I want to see the guy get out of the ups truck and deliver the flu vaccine to the clinic at wall en grews thats what we want to see too, right so getting to the high point. Stuart i hear somebody calling my name is that you steve . Regarding california can i make a political point on whats going on in california . Stuart yup. I find it fascinating watching this and feel terrible for people that ship, im not trying to make light of that situation but its fascinating that Governor Newsom suddenly believes in borders this is a guy whose been a complete open borders critic of the president who doesnt believe in National Sovereignty and look at this a lot of citizens of the United States, a lot of residents of his state of california, he suddenly said do you know what . Weve got ard barack obamaer that matters and youre going to stay in that harbor until its safe for you to come into our country. I find the irony there really fascinating. Stuart dow industrials now down in the 600 minus column, 693 down, and s p down 86, nasdac down 233 points, so 45 minutes almost 45 minutes into the friday trading session, we havent gone lower than a minus 820 on the dow, and weve stabilized if i dare say stabilized for heaven sake dont laugh outloud please but we are somewhat stable at the minus 2. 7 2. 8 all acrosstheboard. Now just show me the airlines again im just in treeinged. We just saw a momentary blip up a few green arrows on the airlines, and im wondering if thats a bottom for them. Look at that, yeah thats still up, not much. Not much. Stuart, its almost stuart the producer is saying youre right. Hold on a second, jonathan. Weve got delta up 2 , jet blue is up i think thats 4 and american is up nearly 3 , jonathan, this is what is it . Cheaper jet fuel . Cheaper jet fuel, and much cheaper stock, stuart. Some of these airlines are down 40 in the better part of a month. This is a historic move. I havent seen anything like it since the terrorist attacks of 9 11 some 20 years ago. You mention the cruise line as well. Cruise lines yesterday had their biggest drop many of them their biggest drop effort ever a lot of them are trading at decade plus lows and if you were looking for an area youd want to buy and maybe not look at for a couple years, airlines and cruise lines, those really the Ground Center for this terrible virus is probably a good place to start picking up bargains. Stuart isnt that the thing . If youve got some money, and you dont care what happens to it for at least two years, in other words you can invest in something that you think is dirt cheap now, walk away from it for a couple of years, and you probably are going to be okay, unless this is a thundering down side move that never stops. What do you say . Look im still a little bit nervous about the airlines here. If you look at how coronavirus is effecting how people are changing the way they do business, i dont think a lot of these moves working at home, teleconferencing are going to be temporary moves. I think youll see new ways of doing business. That hurts airlines over the long term. Every organization out there is going to may backup plan and it could become their first plan if they like how it works and saves them money, thats going to be very bad news for airlines, not just the next two months but for the next 20 years. Stuart if you can work successfully from home why go back to work . Lauren Norwegian Airlines says as of today they have sold over twothirds of their available seats for march. Stuart who . Lauren norwegian air. As of today they have sold over twothirds of their available seats for the month of march. Demand is effected by the coronavirus but people are still booking tickets especially in the near future. Stuart but thats norwegian air. Lauren well still but its an airline saying were booking seats you dont think thats encouraging . Stuart im not down on norwegian, but major league carriers arent they . Lauren i know but people are booking tickets is my point. Stuart okay youve made a point. Lauren i thought that was a great little tid bit. Stuart it was and the airlines are still up, now american is up 5 , they were listening to you, see . You have clout in the marketplace. Lauren oh, man dont send me to norway. Stuart who was in my ear, steve cortez or brian or whose on me . Stuart can i make a quick comment . When trump talked about Sleepy Joe Biden and then you hear this egregious comment from schumer the other day i think this is a time when the politician should tone it down. We all agree that psychology is important. I think having the same old tired sound bite, ripping into each other, is something the public would say is on both your houses. Stuart i have to show you something now thats important, larry kudlow is with Us National Economic counsel director, mr. Larry kudlow joins us from the white house, good morning larry. Good morning, stu thank you. Stuart before we get into the jobs report which im sure youre very eager to talk about are you considering, are you recommending to the president that the administration pump some money into Distressed Industries . Bailout in other words . Well i dont like the term bailout. What we are looking at stuart is a timely and targeted micro approach. We are not looking to give everybody 1,000, which would not have any long term growth effects on the economy. Weve done this before under both parties and it does not work. I think in a situation like this , where each day were doing the best we can to compile information and to take a look at the virus situation, were looking at things like people who may be stranded at home and will lose pay, Small Businesses in certain areas, certain sector s, we may wish to help them with some cash flow, perhaps stu on a larger scale, some of the sectors might need temporary assistance there are a number of things i look at it as a micro and targeted and timely and i think that be the most effective response, but we dont want to act prematurely, because todays numbers show that the u. S. Economy is in very good shape. Stuart weve been saying all morning weve got a really good cushion to work from here, but lets get back to the president and what he said the virus funding signing this morning. He was urging the Federal Reserve to cut rates, again, and quickly, now, we have a lot of comment on the show this morning but really i wouldnt do that much good to the economy, are you on board with lower rates from the fed . Well i think, look, i think in a sense the president is just following the markets, so the drop in long term rates, as well as movements in the fed funds futures market are predicting additional fed rate cuts, so i think thats where hes going on this. I think and by the way, i agree the feds should be marketdriven i also want to say this , stu. I dont think its so much monetary stimulus. Thats sort of an old demand side word. Theres my concern is theres a lot of deflation in these signals. Broad commodities index, silver, gold, energy, oil, natural gas, you know, in the bond market the various breakeven tips. Theres a lot of, so what im saying is i think theres a huge demand for dollars. A huge demand worldwide and i think the fed, actually, i am supporting, the fed did a great job lets give him some credit. They may have to do more. We will wait and see on that. The point is if theres a huge global dollar demand, i dont want to create a massive worldwide deflation and the fed should supply more dollars. Thats as far as id like to go on that. Stuart are you in a position t offer any kind of estimate as to how much this economy will slow down or take a hit because of the virus . I know its early days and i know its a projection which is difficult to make but can you give us some indication . Well look what i know is that for the first two months of the First Quarter the economy is outperforming all expectations. The atlanta fed gdp now is 2. 7 for q1. March is coming well get new numbers and so forth. These job numbers are phenomenon they are just phenomenonal. Theres 350,000, and inside the numbers you seen big movements in construction, size of the movements in manufacturing. The blue collar boom is still very much in place, stu. You see the wage numbers times hours worked which have also went up is almost 5 as a proxy for middle income wage en earn ers much stronger than their plant managers all of those trump themes are very very much in place and look it gives us a very Solid Economic Foundation to deal with whatever may come, with respect to the coronavirus. Stuart other societies dont have that. Europe is largely in recession. That is correct. Stuart chain is at a stand still, weve got the cushion but one of the main stories weve been covering is this extraordinary decline in the yield on the 10 year treasury. Larry we just hit. 67 . Should i welcome that or should i be concerned about it . Well, stu if you own a mortgage, you have a floating Rate Mortgage . Stuart okay, its good for that. Youd welcome that wouldnt you . Stuart i would but look thats a panic signal isnt it . You drop all the way down to. 67 . Look markets are markets. I dont want to say they are right or wrong, but markets are markets. I think theres a big fear factor of the market. Youve heard me say this. I dont know some people say i shouldnt say this Warren Buffett has said this im a long term investor. I look at the long run health of the economy. I look at a president whose policies on taxes and regulation s and trade and oil have boosted the trajectory of the economy, it will withstand a temporary virus so i have said and i will repeat, long term investors should think about going back into the stock market because theres a lot of cheaper prices. Now, the bond market is probably signaling expectations about fed policy, theres certainly no inflation. Theres deflation, stu more than inflation, so i dont know the market, right now our judgments regarding policy, this idea of targeted and timely micro policies, our judgments, our conditions, yes, on the markets but we have to look at realworld data, physical data, and the reports coming in from various Industries Like transportation and gaming and so forth. Our job is to take it all in and were doing the best we can as rapidly as we can. Stuart Larry Klayman we look forward to this weekend, maybe an announcement about these micro policies these micro stimulus policies . I could not speculate on that, stu. Just wouldnt speculate. All i can say is anything in treasury, secretary mnuchin and i and others, were looking at a whole variety of issues. We will be in Constant Contact with President Trump, and i dont want to predict the timing of it but i just want to give you, i think ive given you more info today. Were not looking at big expensive macro cash rebate, helicopter money from the sky that never works. We want to have this targeted in a timely fashion for those areas that have been hit the worst and i just want to repeat, the view of our distinguished veteran healthcare people from cdc and elsewhere, most americans have very low risk of contagion, thats so important, and most americans if they do get the virus, 80 are them recover. Some of them dont even know they have it. Those folks who are, you know, elderly, thats a problem and they have to exercise great caution, but in terms of the economy, in terms of this healthcare analysis, what im suggesting is healthy folks should and can go about their business. We should not be afraid to travel domestically. Where there are clear warnings in places like seattle i get that okay . Thats just common sense but in general terms its fine. We should not be afraid to travel internationally outside of the areas where we have issued warnings. I mean, in italy for example, certainly china is still a big problem, south korea, and there are others so using common sense , using the travel warnings the reality is most people are in great shape they arent going to get the virus and the risk is low and if you do get the virus youll be okay and come through this very well and incidentally i think its germaine, we talked to the biotech and Pharma Companies with the president and Vice President and they will have medicines out in may, june, july, august, the therapies are coming and the vaccines are well on their way too thatll take longer but the actual medicines are coming and we have done this free market economy, backed up by a president who put in travel bans right away, and then established the quarantine methods to follow through, we are in pretty darn good shape to handle this crisis, and the stuff we dont know thats going to happen in the future and we will act on it immediately. Stuart one last one if i may, larry. Ive been talking to a lot of people about what i do for a living and a lot of them say this reminds me of the crash in 2007 and 2008. Will you knock that one down . I just this has nothing to do with the crash. Nothing to do with the crash. Stuart any similarities . This is not a financial issue. Look, stu, we were both covering it, both part of that business. This is completely different. This is really a onetime external shock. The crash, we dont have time to go into the cause of the crash but they are multiple in their financial. I think the fed by the way has acted properly to stop some kind of financial virus as some people have called it. And the crash coming out of the crash for years and years, stu, years and years, this is not the same. The time period here, my view at least the view of our Health Experts is months not years, months not years. This too will pass. I dont want to downplay it and in many cases its a huge an tragedy and i dont want to downplay the importance of that but most important thing for our president and Vice President is the health and security of American People, but this too will pass. The financial crash, complex things, lasted a long time. This has nothing to do with that , completely separate and apart and just look at these numbers today, lets not forget. People are saying well its the least important number ive ever seen because its the past. No its not. Economies are dynamic. This shows you that fundamental ly, the economy is strong, and strong economies can weather external shocks be the health otherwise. Stuart larry kudlow well leave it at that but we do thank you for coming on the show. Thank you, stu appreciate it. Stuart thanks, larry. Recap what larry kudlow had to say, because i believe it moved the market. In particular he talked about micro stimulus, people are los ing pay, and we can get some government money for them, back them up a little bit. If they cant afford the treatment theyve got to go for maybe we can get money to them there. Its micro. Its not acrosstheboard bail out of whole industries but this administration is targeting very narrow areas, not the stimulus but to make sure those narrow areas are okay. When we went into that interview i believe the dow was down about 750 points Something Like that at the end of it, 20 minutes later were down 439 points i think larry kudlow moved the market with that micro stimulus idea. He also nailed it. This is nothing like the crash of 20072008 nothing like it. He says we will come through this in months, not in years, as it took us to get over the crash. Lets go around the block for the people i have on the panel here, you were listen ing brian to what larry kudlow had to say. Main point, go . Hes threading the needle between being short and not panicking, which is exactly what you need to do and hes doing it by offering data evidence and historical comparison thats what the market is buying. Stuart jonathan quickly your impression . I was happy to see him reassure the market. Im a little worried the devil is in the detail about the socalled micro stimulus. Theres a lot of people who would say they need stimulus, so the devil is in the details but youre right the market was down 700 plus points when your interview began, its cut that loss quite substantially since. Stuart scott, what do you got to say . I love how he said do you know what we will get through this. We are going to get through this and when we do, its going to be quick because of these jobs numbers today that tell us when we do get through this well recover, quicker than the last time, because its not an economic problem. Its just a virus. Once wu get through the virus the economy will weather the storm. Stuart now were down 400 points, greg come in please im sure you listened to what larry had to say your impressions . Well we said earlier, stuart watch the leaps this weekend, the trial balloons theres a basket and a lot of micro components to that basket. One other quick point its a good thing trump gets to atlanta just like the royal family went into the subways in 1944 youve got to see that leadership, assuring people psychologically. Stuart what was that expression from the brits, stay calm and carry on . I think that was the expression, stay calm and carry on. Its a good one actually. Yes. Stuart my producer just said keep calm and carry on. Youd stay calm in america, and keep calm in britain. Theres a subtle difference there. You keep shopping. You dont stay shopping thats for sure. All right with me now is tammy bruce and i want tammy to address the politics of this. I think the president will move heaven and earth to avoid a real serious slowdown or a recession before the election and he will move heaven and earth to make sure that this virus is contained and we get through it as quickly as possible. How do you think hes doing so far . I think hes doing fine. His attitude from the beginning has been like his First Press Conference saying look this is like the flu and it literally is even the solutions of course to this is the same solutions that we have for the flu. Wash your hands stay away from sick people, take care of yourself, if youre sick, dont go to work et cetera so the Silver Lining here is that because the flu season already just this year 18,000 people have died, from the beginning of the 20192020 season, 280,000 people have been hospitalized. In the height of the week of the coronavirus panic, 100 children died in this country. We dont hear about that, people get the flu, thats important, its also though only about 55 effective rate this year, but thats almost double what it was last year so we know how to deal with these things you dont see people panicking over the flu, and this is something that even with the assistant secretary of health said to congress i believe just yesterday or the day before, the best estimates now worldwide of the fatality rate, the mortality rate ofcovid19 is sherwood where between 0. 1 and 1 similar if not identical to the flu rate. Stuart interesting. As that number is going to become more apparent as more tests are delivered the American People will see the reality of what this is, because right now, it is the uncertainty and that the news interestingly, media, is covering this as a panicked framework versus the reality of the nature of whats going to happen. Stuart and the president s demeanor. He was calm in the down hall last night. He is probably trying to get to the cdc in atlanta later on today, health and Human Services today at the signing certainly with the president said look, weve got 700,000 test kits on the way this week, 4 million next week, so is he projecting its a fine line. Youve got to clamp down on the panic and you dont want to say how do you think hes doing . I think hes fine and even the pundits and others of his First Press Conference were in some ways complaining he wasnt panicking that he wasnt urgent enough but the fact of the matter is the American People are smart and we must look at the difference between how these individuals are looking at and dealing with the flu as we do every single season, we live our live, we go and enjoy sporting events, we travel, im flying this weekend i know youre going to the outlet store, so so were doing that but lets remember this framework that we have been through this , this is kudlow comments about this being completely unique from the nature of what happened before is important but we are in a political season, it is an election year. Dont let these politicians who have an interest drag you along by your ear, making you afraid when you do not need to be. And its people with pre existing respiratory dynamics that are at risk thats the pollution in china, iran, the smoking rates of men and china who are the most afflicted, its copd, emphysema, the elderly. Check on your neighbors. If you want to make a difference make sure the people in your own family but also the people in your neighborhood and your building are okay. Its the elderly, or if you have a preexisting condition, just like with any respiratory illness, watch out for those people and yourself. Stuart and declare it. Indeed. Stuart thanks very much, tammy. Right now i have an update on Royal Caribbean cruise lines making news . They certainly are stuart saying they are going to deny boarding to certain passengers, they are also saying with equal voice. Stuart what passengers . Any guests traveled main lane china, south korea or italy in the past 15 days, so they are saying any person come from these places basically has a right to be turned away, however they are also saying all guests who are denied boarding, due to these restrictions, will receive full refunds. Stuart as you can see , lefthand side of your screen the cruise lines are actually thats not much of a bounce, bearing in mind how much value theyvevery lost but they are up right now, Royal Caribbean is up 4 , 4 gain for norwegian and carnival still below 30 a share but carnival is the one who owns the princess cruise line and thats the one thats really had pr issue after pr issue so they have really taken all of the pr hits so far. Stuart check that market one more time for you the dow industrials are now down 480 points, remember please when we started the interview with larry kudlow we were down over 700 and now were down 470. The nasdac is down, 1. 9 and they have been down 3 at the opening bell and the s p is down 2 , it too was down 3 at the opening bell this morning. The next big thing were watching, President Trump in tennessee. He left last hour, to survey the damage caused by that tornado in nashville earlier this week. He is expected to land soon and you can be sure youll see it here. This is a live action show. So people can experience speeds that ultra wideband can deliver. 1. 7 gigs here in houston. 1. 8 gigs here in frigid omaha. Almost 2 gigs here in los angeles. Thats outrageous. Its like an eightlane highway compared to a twoland dirt road. The blue collar boom is still very much in place, stu you see the wage numbers times hours worked which have also went up is almost 5 , as a proxy for middle income wage earners much stronger than their plant manager, all those trump themes are very very much in place and look, it gives us a very Solid Economic Foundation to deal with whatever may come, with respect to the coronavirus. Stuart okay, thats what larry kudlow said when he said that about these targeted stimulus very narrowly targeted he moved the market were down 700 and now down 370. We have a president ial tweet coming at us that is fake news that hhs second azar is side lined from the great job hes doing on the virus task force with a total confidence of the vp and myself and doing a fantastic job as the numbers were indicated and by the way, secretary azar was right behind the president this morning in the white house went he signed the virus funding bill and he actually announced right there in the white house this morning, 700,000 test kits going out this week, 4 million next week. The market continues to make a little progress, now were down 370, weve come back four maybe 500 points from where we were earlier today, and certainly come back 400 points from where we were before larry kudlow interviewed with us this morning what else have i got here . I think we should mention that President Trump as he signed that bill this morning, the virus funding bill, as he signed it, he called for Federal Reserve stimulus, he said look the fed should be stimulate stimulating because everybody else in the world is stimulating he wants rate cuts and maybe he wants some qe, forgive me for saying this but that is quantitative easing, that means pushing money into the economy. He wants stimulus he was very clear, dow is down 380 that is 1. 5 , weve cut the loss in half okay can we go back and see some of the blocks of so stock, the big techs all down earlier, where are they now . Have they come back a little bit show me, please, thank you. The amazon has come back, apple is down only 3 i say only 3 as theyre down a lot more than that, facebook is down 3 at 182 , airlines, theyve come back , and look. Theyre not going to come all the way back from their recent losses because they have a little bit of a bounce this morning. Look at American Airlines 5 up but still at 16 a share. Do we have china stocks, alibaba is down, j. D. Com is down, there is news that china is coming back. Gotten over the worst of the Virus Outbreak there. Boeing is actually coming back a little bit but its got a long way to go, 262 on boeing, bought it at 331. The chipmakers is a forward indicator they are down this morning but again, theyve come back. Not a lot but they have come back. Texas, qualcomm, broadcom, on the downside, but again not as much. Gold stocks, lets look at them. They are down this morning, of course cant explain that but they are down. The Home Builders where are they bearing in mind, please weve got to have lower Mortgage Rates the Home Builders are down but not that much, except for lanar , which i see is down what 2. 5 . The financials they do not do well when youve got sharply lower Interest Rates and they politicos renot doing well this morning. When i say lower Interest Rates i mean the yield on the 10 year treasury which is all the way down to. 67 or. 68 historic lows that does not help the morgans of this world, goldmans or citigroup as well. Drugmakers everybody is struggl ing to get themselves a vaccine or some kind of treatment for this , that they are down this morning, pfizer, merck, eli lilly i keep saying theyre down but not as much as they were. Im sure that Energy Stocks are really going to be really hurt this morning, and yes, they are. Bp is down 31 a share on bp, exxon back to 48 a share. Chevron is down to 94. Why is the selloff in energy . Thats very very simple. The price of oil this morning dropped to 42 a barrel not sure exactly where it is now it may be at 43 but that is historically a very very low level, and it appears to be heading south because the russians would not sign on with opec to cut oil production. Therefore youve still got this , a lack of demand, down goes the price, down go the Energy Stocks. Travel companies, theyve been hit hard recently coming back just a little this morning, expedia is up 1 , Bookings Holdings up 2 , trip advisor, that is up 1 but from very very distressed levels. Back to the cruise lines, where are they . They are up. Well theyve been down for so long, theyre due for a little bit of a revival and that aint very strong revival but im sure they will take it. Leisure stocks, im not sure what leisure stocks are, peloton , oh, okay, is that a leisure stock . Is that how you depends how you ride your bike. Stuart you dont leisurely ride your peloton now do you . They are shouting at you arent they . Yeah. Turn down the volume and take a break. Stuart come on, sweat a little bit more stu. Peloton is down, netflix, oh, that is a stock had been doing very well, down 5 today and walt disney, i suspect that is a bounce from an extraordinary low. That was at about what, 150 a share just a few weeks ago, back in mid february, or early february i think it was, now youre at 114 and that bounced to 0. 13 isnt exactly much of a bounce, but maybe disney hit a bottom. I think it was at 112 at one stage. Hotel stocks, who stays in hotels these days not many people. They are really depressed, coming back a little for higher same with marriott, but intercontinental down a fraction do we have more, yes, we do. I want this sound bite, again, from larry kudlow, we dont have it okay. All right lets see now the dow is down 382, the s p is down 51 and the nasdac is down 44. Any comment, brian . Yeah, i think we should talk about what larry kudlow said and how he said it. The president was talking about stimulus he wanted big stimulus. Larry kudlow did something very interesting he said stimulus is definitely on the table but its not going to be panic stimulus. Its going to be targeted. Thats really important. If you do a big stimulus here, people start saying whoa is this much worse than we thought, hes saying there are some spots that need help, thats where we will go he did a really nice job again of threading that needle. Stuart by the way he went out of his way to say this is nothing like 2008, absolutely and completely different, because if youre in this business, like i am, and you have anybody else in the financial business, there will be people coming up to you saying hey, is this another crash . And kudlow says no its not. Because its not systemic, its from the outside it looks more like a natural catastrophe thats very different. Stuart got to go to a break but ill tell you this were waiting for the president to arrive in tennessee, hes going to survey the damage from the tornado and were going to head to nashville, right after this. The world is built for you. So why isnt it all about you when it comes to your money . So. Whats on your mind . 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Its our most dangerous addiction. And to get the whole world clean . That takes a lot more than an alternative. So we took our worst vice, and turned it into the dna for a better system. Materials made from recycled plastic woven and molded into all the things we consume. We created bionic and put the word out with godaddy. What will you change . Make the world you want. Stuart new president ial tweet. Here it is. Spoke to Governor Newsom early this morning about the cruise ship quarantined off the california coast. Coronavirus test kits have been delivered. Testing is taking place now. The president has to work with the governor of california. Hes doing it. Later on today, hes we understand he plans to go to the cdc. That would be in atlanta. Handson president. How is the politics of this working out for the president . Liz you see that despite major issues between california and the president , this work needs to get done. The president is making that happen. The American People are seeing him behave in a consistent way. Donald trump has made promises, hes delivered on them, regardless of whether you support him or not, you know what to expect from him. He has an attitude of getting something done, he expects things to get done quickly which of course, has been a problem sometimes with government but also, when it comes to the testing, remember there was the glitch in the beginning about whether or not people could be tested because of regulations. The Trump Administration has reversed that regulation from the obama era which is why now all these tests go out and why local hospitals and doctors can get tests done when they need them to get done so they are working on the regulation front, actual testing. The president s encouragement and his personal involvement is perfect. Stuart thank you. We are waiting for the president to arrive in tennessee. He will survey the damage from the nashville tornado this week. We take you there next. [ applause ] thank you. Its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. I love you only pay for what you need. Liberty. Liberty. Liberty. Liberty. By consolidating your Credit Card Debt into one monthly payment. And get your Interest Rate right so you can save big. Get a nofee personal loan up to 100k. Stuart now we are coming up on 11 00 eastern time. Im going to give you a market check all across the board. We are down. You will see plenty of red arrows. This is the fear of what kind of impact the virus is going to have on our economy and on corporate profits. Right now, the dow is off 400. Thats about 1. 5 . It has cut its loss in half. Meanwhile, an absolutely blowout jobs report earlier this morning. Look at this. 273,000 new jobs in february, showing a very Strong Economy january and february of this year. Moments ago, larry kudlow weighed in on those numbers. Roll tape, please. The blue collar boom is still very much in place. You see the wage numbers times hours worked, which also went up, is almost 5 as a proxy for middle income wage earners, much stronger than their plant managers. All those trumpian themes are very, very much in place and look, it gives us a very Solid Economic Foundation to deal with whatever may come with respect to the coronavirus. Stuart weve got a solid cushion from a great economy early in the year. Look at this. This is my anxiety indicator. The yield on the tenyear treasury. Earlier, it hit an extraordinary record low of. 67 . Its bounced right back up again to. 76 . As that yield started to come back up a little, stocks lost much of their downtime momentum. As yields come up a little bit, you can expect stocks to come back a bit as well. David bahnsen is with us. Wait a second. Also happening this hour, President Trump will be arriving in nashville, tennessee, touring the damage from the hurricane. The president has declared a major disaster in the area, making federal funding available. Got it. Grady trimble is there. Grady, when he gets off the plane, gets off air force one, is there any opportunity to talk to reporters very quickly, because he rarely shies away from a camera and if he says something, he might move the market. I want to know if hes going to say anything. Reporter we will keep an eye on that, but to be perfectly honest with you, we dont know exactly where hes going to go. We just know that hes going to be here very soon and when he arrives, as i said, we dont know the areas hes going to tour but hes going to see areas like this all over nashville and all over Putnam County as well as a few other surrounding counties here in tennessee. Amazingly, the people who are inside this home, they survived this tornado. They woke up in the middle of the night to see the damage or they were woken by the tornado, then aftermath like this. I mean, look at that. This is inside their house. Lot of people in this area cleaning up after all of this damage. I talked to them about the president s visit. They want to see the president. They want him to see the damage here because as you mentioned, it is a disaster now and that opens up the federal funding. They want that. They need that here, obviously, when you see all this damage, but also, they want him to see how positive this community has been and how its been able to bounce back. We see people all over this neighborhood and all over this Community Helping out, people who didnt see any damage are helping. People who did see damage, i just saw the people who own this house, who have lost everything, give food to a Police Officer who has been patrolling the area. Its been really uplifting here despite the devastation. Stuart we will get back to you when the president arrives and see if he does actually talk to any reporters. I see air force one on the lefthand side of the screen. I believe hes landed there in nashville. I think he has, at least. Im not sure exact location. Anyway, we are on top of that. Hes arrived in nashville. I hope he speaks to reporters. If he does, you will know it real fast. Now, come in, david bahnsen. Are you buying anything right now . Sure. We have been buying throughout the week, with the cash we have safeguarded for a week like this. We deployed across the equity portfolio where we had cash as dry powder. At this point, we kind of put our positions on and i think asset allocators like us have to let it play out because you are in the position youre in. We cant do it as a timing mechanism. Stuart okay. But do you see any sign of a bottom . From a technical standpoint, this is panic selling. When you get to the point where the vix breaks out to near 50, thats when you are close to a bottom. I have gone through it about 25 times in history, the vix has exploded like this, and all 25 times, you had a higher return in the market 90 days later. The problem is that doesnt mean it doesnt go lower monday or tuesday. So i dont worry about those things for my clients. My clients have longer than a twoday and twoweek timeline, but i dont want to give our viewers the impression we are calling a bottom in 72 hours. We just cant do it, as you know. Stuart let me relate something which i think did help the market. About an hour ago we began an interview with larry kudlow, the president s tomorrow economic adviser, and he said, one of the things he said really caught my attention. He said the administration is considering targeted help for those individuals and groups of individuals who may have been hurt by the virus. People who have lost pay, for example, or perhaps people who couldnt pay their medical bills because of the virus. That seemed to lift the market. Do you think that that kind of targeted approach, targeted putting money out there, is a good thing . It would all depend on the execution. In theory, i always love the idea of Less Government intervention than more. However, i certainly understand theres pockets here where there can be meaningful and helpful and acceptable intervention. Im far more in favor of targeted stimulus than broadbased obama type stimulus across the economy and, by the way, the monetary stimulus which is utterly worthless in this environment. Stuart i think thats pretty much exactly what larry kudlow had to say, as a matter of fact. Larry and i say the exact same thing pretty much all the time. Stuart i knew that. I know you are good friends with him, too. David dietze, the economist kind of guy, with us now. I like the idea of targeted narrow help for groups of individuals. Do you think it would help . Absolutely. I would characterize this almost as humanitarian aid, the type of thing we see after a hurricane. No one should let them just deal with it on their own if there was an earthquake. I dont want to see any Airline Worker or cruise worker be laid off because of this. This is so different from the socalled bailouts in 20082009 where arguably, wall street got themselves into trouble by getting too far out on their skis. This is something that has nothing to do with these companies. Its something from nature and thats the perfect situation for government with targeted assistance. Stuart now, larry kudlow also said look, weve got a terrific cushion for our economy. Very Strong Economy january and february, terrific jobs report, 273,000 new jobs. That is a cushion which other societies dont have but which will see us through probably through the bad times in the next few months. You agree with that . I couldnt agree more. You got the low Interest Rates, youve got unemployment down to a 50year low again. We have such a tail wind. Of course, the deregulatory situation, when this economy meets what is basically the virus here is not stage iv cancer. Lets put it into perspective. We have never not come back from a virus situation. Stuart paul conway is still with us, doing valiant work, sitting around for the last couple of hours. We appreciate that. We really do. You are our labor guy. Heres my question. I see work at home spreading vigorously, all across the country, to keep people away from each other during the virus scare. You think they will ever go back to regular work in the office . I think they will, but i do think that, look, we talked about this earlier, theres been a shift in how businesses plan for emergency contingencies after 9 11. Telework and Telecommunications Technologies that are now out there and commonplace allow this to happen. It will be an interesting test how long the virus goes on to see how this imbeds and whether or not you can actually drive more telework options into nonwhite collar sectors as well to make us more resilient. Let me tell you one other quick point. Larry kudlow made a very important distinction which is this. This is a Public Health crisis with economic implications. It is not an economic crisis. I think thats an important thing to keep in mind. We are managing the implications and the president is doing that with the private sector, with pharma executives and with the governors. The governors play a massive role in how this is going to work over the next four or five months. Stuart larry kudlow did say this, too, shall pass. I heard that frequently recently. Now then, the president is about to get out of air force one. Hes in nashville, tennessee. Hes going to inspect the damage there. Hes got emergency Funds Available now for the state of tennessee. When hes done there, we understand that hes going to go on to the cdc center in atlanta, georgia. Kind of a handson visit to the center of our antivirus effort. Dr. Marc siegel is back with us. Doctor, i guess you would think thats a good thing that the president goes to the cdc, that the test kits are getting out there, 700,000 this week, four million next week. All this is how do you judge the president s response to the virus . I think there has been a pretty coordinated effort and i think its being underplayed and has led to way too much political division. Hes been trying to send a calm message. You saw it this morning with him. An antifear message. A message of business as usual but we are taking this very seriously. Him going to the cdc is a really good idea. He needs to meet with dr. Redfield and the leaders there, go over the plan. The idea of getting the test kits, i as a physician think the test kits are going to be more useful to tell people they dont have the virus. Because you know what happens . People hear that its in the city or in a block they were on and they dont know, so they worry and fear is a really positive driver here, not just of markets but of public perception. I think the calm leadership hes showing, i think the public leaders we have on the task force are doing a great job also. Stuart i want to update everybody on this remdesivir. Thats a treatment of covid19. Its made available by gilead sciences. You have some experience with this. I want you to tell us if its an effective treatment for covid19. By the way, the only stock that seems to be up today, gilead. Stuart on the screen, if we can. Gilead sciences. I spoke to the doctor who is actually running the study from nebraska, when i was out there last week, and he says its very promising. They are still in the early stages of testing it against covid19, but they gave it to that patient in Washington State who got better from it. Probably one of the patients in nebraska got it, he was in a Clinical Trial where you have to try a placebo out. Several patients are in the process of receiving it. They think its very promising. Not a cure, but for people that have severe symptoms, to help relieve the symptoms, get them better. And everyone that was there in nebraska in the facility, all 14 patients have recovered or are in the process of recovery. Stuart look at that on the screen, the stock is up about 1. 1 but its had a terrific run anyway and its moving up a bit more today. Remdesivir . Its a biotechnology company. Got a lot of good drugs in the pipeline. Remdesivir is an antiviral drug. Targeted therapy against viruses. It didnt work well against ebola. It seems much better suited to the coronavirus. Stuart good stuff. Thank you, dr. Siegel. On the righthand side of the screen, the president is about to exit air force one, landing on the tarmac in nashville, tennessee. He will inspect the damage. Main point here is, hes going to go on to the cdc in atlanta. Thats as we understand the plan. I do believe he will go there. Handson president getting a grip on the virus. Now, lets recap. We are back down 500 points on the dow industrials. Thats pretty much a consistent loss of 2 now across the board. We have come back down a little bit more but the low this morning was a minus 800 change. That reversed when larry kudlow told us about this targeted stimulus that hes talking about. I did ask him, can we expect an announcement this weekend, because i mean, stock investors would love to hear that kind of announcement. He demurred and said they are discussing all types of options, would not discuss any timetable for any announcement of any kind but they are looking at targeted stimulus. There you go. The president , there he is. Maga hat included, walking down the gangway there. That is nashville, tennessee. We are hoping that he will there will be some reporters close by. They will shout questions and the president will no doubt answer. I dont think we are there yet but if there are any shouted questions and answers, you will be hearing it real fast because he could move the market this morning. Larry kudlow certainly did. Steve hilton is with us, host of the next revolution on fox news. He is in Silicon Valley. Theres a cruise ship with a lot of passengers on board who might have the virus and its right off the coast of california. Whats the mood there . People freaking out . I hate to use that expression, but are they . They are, stuart, but not quite in the way that you might expect. Youre right to say this cruise ship is just a few miles away from where im speaking to you. Some of the earliest cases literally in the county where im speaking to you from. The people i talked to around here, remember, a lot of tech people, engineers, people who as andrew yang might put it, good math, they are freaking out at the response to this and in particular the media response, because they are seeing the hysteria thats being promoted, they are seeing the impact on the economy and saying what is this about, its totally disproportionate. The way that you get a case here, a case there reported as if its blockbuster news, the way people are talking about this as if its going to be something that can wipe out half the population whereas, in fact, we know that the actual impact on real people will be less than you see in some of the worst Case Scenarios and in fact, what they look at is the overall attitude. This is people i talked to say when you compare this to other causes of death that are preventible, that the government can deal with, what is this about, this total overreaction. I support that argument, particularly on a day like today where you see such a Strong Performance in the real economy for real people. All that is going to be thrown out the window by the overreaction. Stuart i think the president wants to show hes got a handle on this thing, that hes in control. Hes a handson president. Hes going to go on to the cdc, is that the cdcs, centers for Disease Control in atlanta, after tennessee. Thats where hes going. Earlier this morning, he said look, weve got the hhs secretary said 700,000 test kits going out this week, four million next week. Steve, the president tweeted that he has spoken with Governor Newsom of california so hes working with the relevant authorities. The president wants to show hes got a handle on this thing. Hows he doing . I think hes doing exactly the right thing. Remember, always important to bear in mind that while the democrats were impeaching him, he was taking probably the most impactful action that we have seen so far which is closing down travel from china to give us that time to prepare for the outbreak. I think his Vice President is doing a fantastic job bringing those experts together. I think what you are seeing, though, is very consistent advice being put forward by the scientists, by the medical advisers, which has been totally ignored by the media and general public. I will give you a specific example. Its been made very clear by the experts, we are told all the time listen to the experts, not the politicians, what are they saying. Theres no risk at all in flying. Flying is fine. Dont cancel travel. Dont cancel flying. Yet people all over the country, big businesses, are canceling travel, canceling flying. Airlines in response canceling flights. It seems to me that actually, we are not listening to the advice and the advice is to take sensible precautions, wash your hands, all that. But not to overreact. Thats whats happening right now. People are overreacting. When they are ignoring the advice. Stuart okay. I understand. But employers have a liability problem, dont they. This is america, land of lawyers and lawsuits. If im an employer and i say to my employees you got to travel, you got to get out there, you got to go there, got to go here, got to go there, and they get it, or they end up in quarantine, i smell a lawsuit. Thats the problem, isnt it . Well, you cant have it both ways. Either you do listen to expert advice from the scientists and doctors, in other words, continue to travel, thats what theyre saying, or you ignore it. Please, can we stop this fantasy that everyone is just looking for the right scientific advice to follow. Thats not actually whats happening. People are overreacting to the hyperbolic panic and making their own decisions not based on medical advice, not based on science. Thats the kind of reaction im seeing here from the very hardnosed Silicon Valley engineers and data scientists, people i talk to every day. They are saying people are behaving in a completely irrational manner and ignoring the official scientific medical advice. Stuart im going to do my own totally unscientific survey tomorrow. I live in new jersey. Im going to go to two large and wellknown Grocery Stores. I want to see what foot traffic is like, are they stocking up. I will go to a very large Shopping Mall. Whats foot traffic like, are people in the malls. Then im going to go to a very famous outlet mall called Woodbury Commons which used to have thousands of people from europe and asia visit every single day because prices are so cheap. Im doing a little survey of my own to see what foot traffics like, stockpiling is like and visitors from foreign tourists. What are you seeing in california right now . Well, im seeing what i think you will see, too, which is this panic reaction. So in costco yesterday, people literally stocking up on water, on toilet roll, all the things you have been seeing elsewhere around the country. We absolutely see that kind of reaction. That kind of reaction is completely detached as i was saying earlier, from any kind of advice we are getting from the authorities. Thats what i mean when i say people are overreacting to hype rather than following the very sensible, very clear and consistent advice we have had from the medical experts and scientists. Hygiene precautions, wash your hands, disinfect surfaces, et cetera. Thats all great. But no one is saying dont travel. No one is saying stock up on toilet paper. Stuart that is true, steve. Yes. I shall observe this firsthand tomorrow. Hold on a second. Doc siegel, just give me 30 seconds of what i should do, wash hands, all that stuff. I think steve was very eloquent but i want to disagree slightly as someone who wrote a fear book. You realize every time i tell you to wash your hands, you are saying why am i washing . Is the corona here . Also, if they close a school down the street, steves right, they may be closing it for the right reasons but then people say is my school going to be next, is my church going to be next. So the overreaction is done by Public Health officials in the name of containing and squashing the virus. People see that reaction, they misperceive it. Im telling my patients there yes, wash your hands. The flu is around. Yes, dont sneeze and cough on people. The flu is around. The coronavirus, we are trying to keep it from being around. We have to message this exactly right, or people get a fear message. Stuart i think the message got through, certainly for here in new york. Last word to you . I completely agree with that. I think thats the thing thats really good about all this, is its reminding everyone of these basic hygiene practices. Its been a really Effective Public Service announcement basically the last couple of weeks. People have learned these things and i think they are adapting to them, they are putting them into their daily routine. Thats going to be really great for Public Health not just this year but for years to come because it will reduce the influence of the flu which actually kills more children, certainly, and so far has killed far more many people this year in america and elsewhere than coronavirus. Long may that continue. Lets keep taking those sensible precautions. I think that is something positive that we can all take from this. Stuart just moments ago, we were talking about remdesivir which is a treatment, apparently successful treatment for the symptoms of this virus, doesnt cure it but gets you through it, and that is made by gilead sciences. David bahnsen, i think you own a piece of gilead sciences. My question is, you going to buy any more . Yes, we have been buying through the whole period. Understand, we are not just buying in response to the news that they have a therapeutic here that we believe is going to be effective. We have owned it before and we want to continue owning it because this is a dividend growing biotech company. But it does just so happen that its up 17 through this whole period so its been somewhat defensi defensive but the part that wasnt said on the segment before i wanted to add that i think is really important, is they dont have the final approval yet, they are waiting on testing to come back in china. We are expecting it back the second week of april. The fda has really gone quickly here to expedite the sort of investigative approvals they need. But they are ramping up and repurposing current manufacturing capacity in preparation for that approval. Thats how much optimism they have. So nobody knows until you get the approval, but we believe there is a therapeutic that is a treatment, not a vaccine, thats going to be very effective in the marketplace from a dividend growing Profitable Company in gilead. Stuart i know you invest in dividend growing stocks. Can you give me another . I have seen some of these stocks depressed way, way down and that of course raises the yield, the dividend yield. Can you give me a company, a stock, which is all the way down yielding a ton of money in dividend like say 8 or 9 and where that dividend is safe . Can you name one . Well, not necessarily 8 or 9, but 7ish. Stuart who . I would take 7. Its a very solid dependable steady dividend that right now, you can get over 7 with simon property. They will not be cutting the dividend. Its being paid from net operating income. They have significant cash on the balance sheet. Its simply part of this selloff we have seen take place. People are very afraid of the Energy Companies right now with oil at 42, 43. Thats of course a great time to be buying them, not selling them. The idea that exxonmobil, which never cut its dividend through the exxon valdez problem, is right now yielding close to 7 . People are not going to be able to buy these levels in the near future. Exxon and simon are my two names for you right now. Stuart thank you very much, david. Got to refer back to the market, give you an update on where we stand. We are almost two hours into this friday morning trading session. I would again remind everybody its friday. If you are a bigtime trader, you might be reluctant to own stock over the weekend because you are not sure exactly whats going to greet you come monday morning. All kinds of announcements and developments take place over a weekend. That could hit the market, hurt the market. You dont know whats coming. So a lot of people will withdraw. I would not expect this market to close higher today. I would be very surprised if it did. I have no idea how far down its going to close this afternoon but just bear in mind its a friday. We are down, what, 2 plus on the dow, 2 2. 5 the nasdaq, 2. 4 on the s p. Can you show me again that tenyear treasury yield . Thats the anxiety indicator. This tells you how much money is flowing into america, into the safety of american treasury securities. Its. 728 right now. Thats way down, 18 basis points down. David dietze, economist kind of guy, with me now. Have you ever seen that before . A drop in the yield like that . No, absolutely. Im not in the business of calling bottoms in markets but i have never seen a bond market be this panicky. Its not just the tenyear, its the 30year. You know inflation is going to be 2 or more over the next ten years to lock your money in at. 75 . It makes no sense. I dont know who is crazier, the bond market or the people who wont fly or go out of their house this weekend. Stuart we will leave it at that. 72 , tenyear yield, as of right now. Moments ago, the president arrived in nashville. You saw it happen. He will tour the tornado damage. We are following it for you. And check the market again. We are down 2. 1 . Were not done yet. Steve forbes, bill cassidy, Mercedes Schlapp and matt schlapp all coming up. Stay with us, please. With sofi, get your credit cards right by consolidating your Credit Card Debt into one monthly payment. And get your Interest Rate right so you can save big. Get a nofee personal loan up to 100k. Get a nofee personal loan to be our guest. With an invitation. The invitation to lexus sales event now through march 31st. Lease the 2020 rx350 for 409 a month for 36 months and well make your first months payment. Experience amazing at your lexus dealer. Their medicare options. Ere people go to learn about before theyre on medicare. Come on in. Youre turning 65 soon . Yep. And youre retiring at 67 . 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If you tell people dont take a cruise, cruise liners would need that stimulus. Stuart that us true. Look at that. The cruise line stocks have turned around. They were up 10, 15 minutes ago. Now they are on the downside. Fwr Grady Trimble live from tennessee, the president has arrived. Where is he going . Can you confirm hes going to the cdc later . Reporter i do believe hes going to the cdc later. I can also tell you hes right there right now. Thats his group of helicopters in the sky there taking an aerial tour. We do know he is taking this aerial tour today after he got off air force one. He was greeted by tennessees governor, bill lee, as well as mayors of some of the towns most heavily impacted by these tornadoes, including the mayor of nashville and mt. Juliet, not too far from here in Putnam County. After this aerial tour, we are not sure what hes going to do. You can see on the ground here the types of things hes seeing from the air as we speak right now. Not only is he seeing the damage and debris piles like this, but hes also seeing the volunteers helping pick up from this mess. He continues to go off into the distance right now. We will keep you posted if he swings back around toward us and we will certainly keep you posted if he lands anywhere and takes a tour from the ground. Stuart . Stuart thank you very much, grady. Quick update here on the impact of the virus. I think, whats this . Deirdre facebook is closing its London Offices until monday. They are ahead of us so i dont know with a half hour to go in business in london if this is the biggest news but there was an employee based in singapore who has been diagnosed with the coronavirus who visited the London Office february 24th through 26th. So facebook just saying okay, Office Closed for the weekend. If you have work to do, its not happening. They are pulling out along with numerous Tech Companies of the south by southwest conference which is scheduled to kick off next week. The organizers still having it but ten major tech firms say they are not sending employees. Stuart got it. A special moment on the program right now. Not only do we have Mercedes Schlapp with us but she has brought her husband, whose name is matt schlapp. Is this the first time you have been on set together in umpteen days . Its been awhile. Couple years. You brought us together. Its a reunion. Stuart okay. Lets get serious here. The president is on his way later this afternoon to the cdc. Hes announced this morning theyve got the test kits going out, 700,000, and got four million test kits next week. The president wants to show i think that hes got a grip on this, got a handle on this. You work for him. You obviously approve of this. Well, what we have seen is the democrats politicizing this issue and i think thats been problematic for them. Heres the president. He is ahead of the curve. Hes taken the early action needed to restrict the travel to quarantine the people who are sick and also to work with nih to get the vaccine, to get the drugs necessary to deal with this problem. Only in america. I think for President Trump, hes listening to his health care experts. They are coming in and saying look, if we got to close this border, we are closing the border. The president saying we got to do what we can to ensure the priorities, the health and safety of the American People. Stuart he did say we have a plan for all possibilities. Hes looking forward, got a grip on it. Its the one thing you notice about the president , matt can tell you as well, hes thinking ahead. Hes thinking whats the worst case scenario, then taking the necessary steps and monitoring the situation day in and day out. Stuart got it. Matt, we heard from larry kudlow earlier this morning. The jobs report. Our conclusion is that youve got a very very Strong Economy and thats a very good cushion going into this virus impact. A cushion which europe doesnt have. Japan doesnt have. China doesnt have. We are looking pretty good. I would use the adjective resilient. Because the president has taken all these deregulatory and tax steps, our economy can weather these storms. The other thing is a 3 increase in takehome pay and the fact people have money to invest, you know whats happening in the market. Yes, we have had some rough days but theres a lot of people buying. They believe theres a lot of good buys out there in the marketplace. I would just say to everybody, we have to go through the news, we have to try to figure out whats going to happen, but in the end, if the president continues to provide leadership and everybody is looking to america, no ones looking to a communist or socialist country to solve these problems. By the way, a border, it works, because this is the reason why you need to have a border you control, things like this. If the president provides that leadership, the American People will rally around him. We always do. Its what makes us americans. Stuart mercedes, when we were talking to larry kudlow, he was talking about a narrowly targeted focus on small scale stimulus to groups of people, groups of individuals, who need it like people who have lost pay from this or cant afford the medical expenses. Targeted help for them. I asked him are you going to make an announcement this weekend about some kind of stimulus measures or defensive measures for the economy. He said no, no, no, we cant speculate like that. Will you . Well, in my days at the white house, it was always we would have these discussions, brainstorming sessions, to figure out what we can do to provide relief. We did it obviously with trade and helping farmers in terms of the mitigation package we sent out. So they obviously are going to look into is there a need for economic assistance. I know it makes some republicans nervous. At the end of the day you got to work with congress to get these things done. I think for congress, even getting this emergency bill done, this emergency funding done of the over 8 billion to help on vaccines and help with kits and all the Emergency Response they need to do right now is definitely the first step. Well see where the Economic Team goes but obviously, this is something the white house, the process they go through to ensure whats going to happen long term, whats the impact it could have on different individuals in the United States. Stuart the president walks a very fine line. He must come across as being in control, but he must not panic the nation with extreme measures which could, you know, make people panic. How do you think hes doing so far, matt, walking that very very fine line . Dont ask me. Look at gallup. The American People feel he has better numbers today than hes ever had and the American People feel more optimistic about their future under trump than any day of the obama administration. So to me, i think the president is doing a great job but look, its on his shoulders. His shoulders are broad but its on his shoulders. He has to continue to show the country that hes listening and responding to the information we get. If he does that, in a fair way, not a perfect way, a fair way, the American People will be fair with their judgments. Stuart i think sorry, you were going to say . Making sure the media doesnt overreact. Making sure the democrats dont make this into a political game. This is a serious issue they want to create panic. We cannot create panic. There needs to be a science of calm. Even our young kid, our 8yearold, was asking us questions about the coronavirus. It really does impact and makes our children worry. Its important for parents to also take that step of saying take a deep breath, we are going to be okay, we will get through this, because thats the bigger concern, what will the impact be come three months period of time here in the United States with the coronavirus. Stuart i notice the democrats have been relatively quiet on the issue of the virus. Senator schumer has gone hog wild, of course, but i have not heard similar statements from democrats about the virus and the way the president is handling it. They have been i think relatively restrained so far. They backed off. Initially, Speaker Pelosi and the democrats in congress were trying to say the president doesnt have a plan, we dont know if we can pass a funding bill. They got off that very fast. With the American People, the American People by and large are not that political. They are practical people that are running their lives, raising their families. When you play politics on Something Like a virus, theres going to be hell to pay. I think actually for the democrats and for the republicans, once again, this is time to come together. The whole world is looking at america. They need not only help financially, they need our best scientists. The innovation is in america by and large. This is a time for america to lead. This is for us to dust off or flag, be proud of what we are all about. We have a free market, where innovation occurs and this is why we need it. It will save peoples lives. Stuart mercedes . I have to say i think the president s handling this the way we need to be doing this, with leadership. The president said this clearly. Democrats talk about that the president divides. You know what, hes been able to unite because of his success, talking about the economic success story, the comeback story here in america. Compare that to biden who is now talking about tax increases or bernie sanders, more tax increases, which would negatively impact our economy. In order to even survive the coronavirus we need a Strong Economy. We have that in place. We are seeing the jobs numbers show that to us. Now is the time that we all need to stand together behind the president and support him in his efforts to contain the situation and ensure the American People feel that we are in good hands. Stuart mercedes, matt schlapp, great to have you together on the set, either side of me here. Thank you very much for joining me. Nice reunion. Stuart glad to hear it, lad. Thank you very much. Let me wrap up the market, please. We have been open for two hours and ten minutes. The low of the day was minus 800 odd points. Larry kudlow came on the show and talked about targeted stimulus. That went down well. The market moved and now we are down just 450 points. We are still down. Thats a significant loss. Nowhere near what it was earlier. Same story with the nasdaq composite and s p 500. Show me that allimportant anxiety indicator, please. That is the yield on the tenyear treasury. We hit a low this morning of 0. 67 . That is an astonishingly low yield. Look at this. We are back up, not very far. We are back up to. 73 . Still an historical extraordinary thing but nonetheless up in terms of where we were. Coming up, steve forbes will join us and bill cassidy. Thats the great senator from the state of louisiana and former president ial candidate, steve forbes, all on this program after this. Hi, im bob harper, and i recently had a heart attack. It changed my life. But im a survivor. After my heart attack, my doctor prescribed brilinta. Its for people who have been hospitalized for a heart attack. Brilinta is taken with a lowdose aspirin. No more than 100 milligrams as it affects how well brilinta works. Brilinta helps keep platelets from sticking together and forming a clot. In a clinical study, brilinta worked better than plavix. Brilinta reduced the chance of having another heart attack. Or dying from one. Dont stop taking brilinta without talking to your doctor, since stopping it too soon increases your risk of clots in your stent, heart attack, stroke, and even death. Brilinta may cause bruising or bleeding more easily, or serious, sometimes fatal bleeding. Dont take brilinta if you have bleeding, like stomach ulcers, a history of bleeding in the brain, or severe liver problems. Slow heart rhythm has been reported. Tell your doctor about bleeding new or unexpected shortness of breath any planned surgery, and all medicines you take. If you recently had a heart attack, ask your doctor if brilinta is right for you. My heart is worth brilinta. If you cant afford your medication, astrazeneca may be able to help. Stuart all right. Ive got news on tesla. Apart from the fact the stock is down 31, the news is not about the car side of their business, but about the solar side. The news, please . Lauren they are hiring employees in china for their solar and Energy Storage project. Why is this a positive even though the stock is not reacting, because theyre betting on the china market for them and also on the recovery in china, that it is okay and safe to spend in that country. Stuart in our endless search for bright spots in an otherwise down day, we found one. Deirdre walgreens boots alliance, you will see green on the screen there. A gain of almost 3 there. Of course, as more and more people shop for clorox wipes, purell, tissues, toilet paper, whatever it is, they are going to drugstores and this one included. Stuart can you show me the price of oil . I know its way down. I believe it touched 41 a barrel its 42. 30 right now. Thats down 7. 8 . Thats a big deal. Steve forbes, forbes chairman and editor in chief, joins me now. Lets not deal with crude oil right now. Want to deal with what larry kudlow told me earlier, that they would have targeted, targeted stimulus go to groups of people who may have been hurt by this. You approve of that . I think it was brilliant on his part. That was a great interview. I think it was very reassuring that theyre not going to panic, they are going to deal with specific problems. That way, congress isnt going to go off on a binge, its not going to harm the economy, people are hurt, we will help them as much as we can. That shows compassion. It also is one reason why the democrats are not trying to make this an issue. The administration is responding with calm, authority, tealing wi dealing with facts as they come and people want this reassurance. They know this did not start in trump tower, this virus. So get off that horse. Stuart thats a great line. Can i steal it off you . Sure. Theres no patent. Stuart it did not start in trump tower. So i think also, the report on february demonstrates that previrus, this economy was really starting to rev up again. I think after the election, assuming trump is reelection, you will start to see amazingly in europe next year, they will start to make at least some of the countries, structural changes. Instead of trying to rely on monetary policy, they will start to deal with tax policy. You already started to see it months ago with greece, the ultimate basket case in europe. They started to do deregulation tax cuts and guess what . They showed Economic Growth. Voila. Stuart you have to get past it. You have to get past this global problem with the virus. Americas got to get past the virus. I think we are showing the way to do it. You take measures. The president responded earlier, as he pointed out a couple weeks ago, he got no credit for closing the border in the sense of the Chinese People coming in. Hes taken those measures as they have been needed, so yes, larry also i think emphasized, tragic though this thing is, we will get over it and we will recover. The strength is there. Stuart last one. I asked larry kudlow, some people have said does this remind you of the crash, 0708. He said absolutely not, its nothing like it, its a completely different thing. You second that . Absolutely. The problem with 08 was government policies, mistakes by the fed, mistakes by the government, trying to stimulate when they shouldnt have stimulated, debasing the dollar and the like. Hes right, this is a onetime shock. Ultimately we will get over it and have more strength than the rest of the world to recover. After the election, i think you will start to see what happened with Ronald Reagan in the 80s. Countries will start to imitate success even if they dont acknowledge who the author was. Stuart the long view from steve forbes. Thats a good idea to do that. Hold on a second. Im going to tell everybody the price of oil is proving something of a problem for American Drillers and american oil companies. We have the great senator from louisiana, bill cassidy, on the show right after this. Discomfort back there . Instead of using aloe, or baby wipes, or powders, try the cooling, soothing relief or preparation h, because your derriere deserves expert care. Preparation h. Get comfortable with it. A more secure diaper closure. There were babies involved. And they werent saying much. Thats what we do at 3m, we listen to people, even those who dont have a voice. We are people helping people. Robinwithout the commission wfees. So, you can start investing today wherever you are even hanging with your dog. So, what are you waiting for . Download now and get your first stock on us. Robinhood. Can you help keep these iguys protected online . . Easy, connect to the xfi gateway. What about internet speeds that keep up with my gaming . Lets hook you up with the Fastest Internet from xfinity. What about wireless data options for the family . Of course, you can customize and save. Can you save me from this conversation . That we cant do, but come in and see what we can do. Were here to make life simple. Easy. Awesome. Ask. Shop. Discover. At your local xfinity store today. And now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Stuart well, the markets are moving today and oil is one of those markets thats really moving. The price is down 7 per barrel. Youre back to 42. An ideal time to bring in the senator from louisiana, republican bill cassidy. Mr. Senator, its great for us to see the price of oil go down because im going to be driving with cheap gas, i know it, but its not good news for the drillers and the major oil companies, which cant make a profit at 42 a barrel. What do you say . I would say its not good for the country to have it too low, because that means Economic Activity is not doing well. It also means that air travel is not happening and we need that International Commerce for many things, not to support the price of oil. That happens when you make a lot of jet fuel. But to make sure that were communicating with foreign markets so in that sense, its not good, either. Stuart on the other side of the coin, i thought this was terrific news, i read a report the other day that we exported four Million Barrels of oil a day, and i think a lot of it went through louisiana, didnt it . It does go through louisiana. If you will, we are the heart that pumps oil into the country and out of the country. It used to be into, now that we are energy selfsufficient, its out of, including not just oil and gas, but oil and gas byproducts. Its great for creating jobs. Its great for using our Environmental Standards to make those products instead of other countries. I can go on but im very pleased for my state and our country. Stuart earlier this morning, i interviewed larry kudlow, white house chief economic guy economy guy, and he told me that they were thinking about targeted relief for groups of individuals like if youve lost pay or you cant afford the medical bill from the virus, maybe some financial help would come at you. You approve of that kind of targeted stimulus . I think we actually have some targeted stimulus already lined up. Theres a surprise medical billing bill thats working through both chambers, someone goes to the emergency room, gets a surprise medical bill, oh, my gosh, i thought you were in network, yeah, but the test wasnt. We need to take care of that. Theres also a bill to lower Prescription Drug costs. What we dont want is some cure to be discovered, maybe an older drug, a pharmaceutical bro buys up all the Production Capacity and then jacks the price up to, you know, 100,000 a year. We dont want that, either. So there is a bill a grassleywyden bill, that we need to pass as well. Stuart but you dont want to see kind of a bailout of airlines, for example . You know, i think the airlines can handle themselves. They have different ways to compensate. But i would like to see, i think, some sort of package to make sure that we continue this Economic Growth that we have. Im really concerned about those working americans who have so benefited under the trump economy. I want that benefit to continue to come out. Maybe we would have an infrastructure package keeping people at work in construction creating the infrastructure that spawns future growth. Stuart that would be good. Senator cassidy, im out of time. Thanks very much for being with us. Really appreciate it. More varney after this. On the outside. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. En . . 1. 8 gigs here in frigid omaha. Almost 2 gigs here in los angeles. Thats outrageous. Its like an eightlane highway compared to a twoland dirt road. The crews lines are very much the center of attention with this virus. We had a report saying the administration is considering discouraging travelers from taking cruises. Thats from anonymous white house sources. We also have Royal Caribbean cruise line saying they will screen anybody before they get on board. Disney cruises thing exactly the same thing. They will screen people before they get on board. Theyre very conscious of the fact that these cruises can be floating petri dishes. Thats very bad news for the cruise line and they are all down again. I think everyone on the program today, rock n roll, here we go. Great interview with larry kudlow. Welcome to kabuto coasttocoast. Stocks are still down on coronavirus. We have the number of u. S. Cases up to 232. Its nearly a hundred thousand worldwide and the president signed a funding bill the congress passed. The second thing we will watch in this hour is the president will be taking of the tornado ravaged state in