Transcripts For FBC The Claman Countdown 20240713

2,255 points. Right now we are down 2,003 points. At 1 00 p. M. , money started fluttering down, the Federal Reserve making a move to support the bond market amid the coronavirus collapse. The s p 500, by the way, had been down 240 points and of course, we had 689 points getting slashed off the nasdaq. Right now the s p is down 219 and as we look at the nasdaq its down 619. Despite the feds move, the s p and nasdaq joined the Dow Jones Industrials in a bear market. This as the 11year bull market is officially about to come to an end. The selloff kicked in pretty much right at the open and five minutes in, triggered once again for the second time this week the Circuit Breakers that halted trading for 15 minutes. Lets show you some metrics here. The oil patch. Take a look at this. It is playing a huge role in this selloff once again. Oil is crashing, folks. We do have it down to 31. 32. Thats a loss of 5 today. Much of this comes after President Trump announced a travel ban on flights from the entire european continent, ex the united kingdom. The fear gauge spiking. You heard charles mentioning the high of all time is about 80. Right now we are at 70. 67. This is as low as we saw during the financial crisis of 2008. Right now the vix is spiking 31 . Okay. We are 58 minutes away from the closing bell and we are starting to see things move. One bright spot in all of the coverage we have seen and the carnage is zoom video communications. Can you believe this . Its actually in the green right now, rallying 62. 7 this quarter, as businesses and universities and colleges and schools rush to use its social distancing services. Zoom software being used to help employees and students work and learn remotely. In a fox business exclusive, coming up in just a few minutes, zooms chief Financial Officer is here on the spiking user numbers they are experiencing and how the system is holding up. Team fox business is ready to field anything that comes our way and again, i stress that the headlines are coming fast and furiously in this hour. Our floor show traders are standing by here at the New York Stock Exchange and the cme whose floor, by the way, will close tomorrow after the trading session. Plus hope for a vaccine sooner rather than later. Robert kraemer is president of a Company Called emergent solutions. Hes got breaking news he says he wants to share with our viewers. His companys work to develop a coronavir coronavirus. Breaking news. Romes catholic churches have now been ordered to close, all of them, because of the coronavirus. This is a move believed to be unprecedented in modern times. And we should mention that back at the Supreme Court just announcing it will be closed to the public from 4 30 p. M. Today quote, until further notice. So Supreme Court closed in just about an hour and a half. Less than that. Out of concern for the health and safety of both the Public Employees and of course, any visitors. We are also hearing that Boston Marathon organizers are now discussing rescheduling the famed Boston Marathon. Might move it to the fall. They will have a decision within the next 24 to 48 hours. Ohios governor announcing the Ohio Department of health, the director will be issuing another order that bans mass gatherings, not even that mass, 100 people or more. Nou in new york it is 500 people or more. Well, we now have the state of Maryland Governor larry hogan announcing major actions to protect the public. That will be at a 4 00 p. M. Eastern time conference. We will continue to bring any breaking News Headlines for you regarding postponements and cancellations. To airlines. How many of you out there have canceled flights . Today, i canceled my monday flight to colorado. Airlines are now turning to the credit markets because so many of us are canceling, as shares plummet in the midst of a tsunami of cancellations. We do have United Airlines down 20 on news that it is borrowing 2 billion to help pay transaction fees and expenses and to fund general corporate purposes. This after delta raised 1 billion last week and American Airlines raised half a billion two weeks ago. American airlines down 10. 7 . Delta down 17 . Delta now stands at 35. 12. The coronavirus is adding to boeings long list of troubles following the grounding of its 737 max jet fleet. That of course was last year. According to reports today, boeing possibly as early as tomorrow will draw down the rest of the 13. 8 billion loan it had agreed to last month. That stock down 14 , now below 170. Its at 162. 48. Check it, 55 minutes before the closing bell rings. To the cruise industry. I want to take you back to the debate we had on countdown on tuesday between ucla center for global and immigrant Health Director dr. Anne romoin and the cruise guy, stu sherron. Listen. The global data is clear. Covid19, this coronavirus disease, spreads easily on cruise ships. In fact, many viruses spread easily on cruise ships. As a result, we really need to limit the opportunities for spread. Liz cruise or not to cruise . I would absolutely go on a cruise. Liz well, it appears somebodys made the choice for everybody here. Two cruise lines have taken the doctors side on this. Carnival Princess Cruises announcing it is suspending Global Operations for its 18ship princess fleet. I want to stress that, the princess fleet, for at least the next two months, after two of its ships were quarantined due to one very major outbreak and another pretty significant one. Shares of parent carnival, well, lets look at that stock. It has been a rather horrific situation since about i want to say four weeks ago. If we put it up there, you can see its down another 20 , after initially dropping 23 in early trade. Now, almost before carnival announced the closure or stopping of the princess line, viking cruises also canceled all cruises through april 30th. One female passenger on a 29passenger Southeast Asia river cruise was exposed and now all other passengers will be quarantined. I want to stress that the news is very fluid. Check the dow. Its down 2,072 or 8. 8 . Once again, we are going commercialfree for the claman countdown to get you every breaking news headline as it happens and of course, the subsequent market reaction. Weve got our eye on multiple metrics here. Lets bring in the floor show traders. If i have my 15 different screens here, you guys are looking at 36. Sarge guilfoyle, why is gold behaving this way . Gold is also falling. It is now below 1700 an ounce. Im guessing its because people are selling gold to raise money for what, margin calls . To raise money for everything. You are exactly right, they need cash. What the market has to do, what the market is doing, is pricing in a recession that will be backdated to february or march of this year. Demand destruction created by social distancing is what we are experiencing and this will have an impact on this economy that cannot be sustained. With the s p at 2512, thats a high price for where we are going unless, unless we see something truly stimulative from the fed which we have not. This was not stimulus. This greased the wheels of liquidity or if we have the treasury help in some way if Congress Gets its act together. Maybe by the 18th when the fed meets there can be some kind of coordinated action between the two types of stimulus. Liz yeah, i agree that weve got to watch this. But what the fed did today, meaning not even helicoptering but as i said, like dropping it from a c130 cargo plane because this is so much money its not stimulus. Its not. Those are term repos, shortterm loans. Thats all they really are. What we had, we had tremendous lack of liquidity in the bond market over the last two days. Im sure you saw the spread across the treasury market. That was a problem. Traders could not lay off their risk. They had to actually make sales across many different types of financial assets, which exacerbated the selloff we have seen for two days. That had to be solved. The fed has been focused on this. I will give this to jerome powell. The man is the only guy that knows we are in a fist fight with satan. The rest of them havent figured this out yet. Liz you know what, for you to say that, because i know in the past you have been critical of the fed, thats big. Ira epstein, the s p coming in today had to be down just 32 points to put it firmly in a bear market. Right now, we are down 212. You see any cracks in the system . This has been the issue. We can cycle through every stock thats getting hit until ten months from now but im looking at the moment and im seeing that weve got to be careful of any kinds of fissures in the system. What are you seeing, if anything . I dont see those fissures, number one. This is a virus. You cannot throw enough money at a virus to conquer the virus. Where were at is where i slaai last week, theres a bell curve with this. We have entered the point where we are climbing up the lefthand side of the curve. We will get more bad news over the next couple weeks, we will hear about more cases, not enough tests, whatever they are going to say, and those that try to come in and catch this knife as its falling hoping for that little bounce, you will walk into more bad news likely next week. Everything in america is closing. Its like that movie the professional when gary oldman said how many, bring them all. They are closing it all. And thats what you have to do to keep people away from each other to get beyond where were at. The church is closing. I think you are getting the idea this is a serious situation and all the fed can do is, if you will at this time, cushion the market. We need Government Action and fiscal action but not yet. Let it come as we get closer to the peak. Liz i want to talk with Scott Shellady quickly. You were striking a tone earlier today, in essence saying this could be a very good opportunity, but people were saying that a couple days ago and now we see even further levels to the downside. Is there a trigger you will be looking for where you say thats a good one, im getting in . When the fed comes out and says they are going to suspend all forms of life and have us all cryogenically frozen until the virus is over. If they cant do that, ira is exactly right. We cannot solve the problem with money. Until the fed can do something to bring out mr. And mrs. Smith to go to chinatown and have dinner tonight, then im on board. Until that happens, though, im going to be looking at three things. Jobless numbers, weekly jobless numbers, jobless claims, also i want to look at consumer confidence, thats a big one we get tomorrow, and liz we are showing shale producers right now. We know the energy patch, the oil patch, has been laying off people already and conserving cash. Go on. Then lastly, i would be looking at the number of cases. This is still climbing up, the lefthand side of that bell curve. When that starts to slow down, we can start to get healthy again. The market will figure that out maybe before the general public does. Those three things, im going to watch. Short of the fed giving mr. And mrs. Smith the confidence to leave their homes to go out to chinatown for dinner. Other than that, we are in this for four to six weeks. Liz hold on. Really quickly, sarge. Go ahead. Maybe they cant provoke mr. And mrs. Smith to go to chinatown for dinner but maybe they can provoke mr. And mrs. Smith to not lay off the 12 employees at their convenience store. Liz by promising some money from the federal government. I get that point. Gentlemen, we have to go. Thank you. We will check back in with some of you later. We have scott and sarge and ira. Thank you very much. We also have 47 minutes before the closing bell rings. The dow really struggling, trying to come back just a touch. We are down 1,187. Moments ago, Major League Baseball officially suspended spring training following both the nba and the nhl and Major League Soccer, who have all delayed their seasons due to the virus. And the lights are going out on broadway. New York Governor Andrew Cuomo announced the immediate closing of broadway theaters with a capacity of 500 people or more. That order goes into effect at 5 00 p. M. Eastern today. This includes Richard Rogers theater, home of the hit musical hamilton. The governor has also announced there will be no gatherings of more than 500 people at all in new york city. That begins tomorrow at 5 00 p. M. The coronavirus, got to call it a horror show because it absolutely is. First taking aim at james bond and now delaying another of the most anticipated sequels of the year. A quiet place 2, the followup to the thriller from 2018 starting emily blount which was supposed to make its debut next week is now postponed. The director john extra skraczi confirming the news on instagram. Paramount parent, viacom cbs is down 17. 8 . It is now a 16. 27 stock. Lets get to Movie Theater stocks. This dovetails rather appropriately. They are taking pretty stunning hits at this hour. Look at Cinemark Holdings down 23 . Imax is down 23 as well. Amc theaters down 20 . That broadway ban, thats set for 500 or more people which leads us to ask what will happen with the Worlds Largest Shareholder Meeting which is just seven weeks away. Im talking about Warren Buffetts Berkshire Hathaway Shareholder Meeting in nebraska which last year drew 40,000 attendees. I spoke to Warren Buffett last night. He clarified while his plan is to wait until around april 1st to make a definitive announcement as to whether the meeting will happen, he did tell me who will be there. He told me quote, the meeting has to be held according to rules and that no matter what, at least three people will be there. He said ill be there, along with someone to make the motions and someone to second the motions. But we dont know how this will play out because ostensibly the virus situation moves by the hour. It is looking increasingly likely, i would say, that the meeting will take place in its usual form. Last year, yeah, the 40,000 attendees broke the record. They descended on omaha. He told me last night he would be very cognizant of what the public Authorities Say or deem. He said quote, we could be ordered by departments of health from Douglas County and the state of nebraska to cancel or markedly scale back. That said, you guys know this. People make plans a year in advance to come to this meeting. Hotels as far as iowa sell out. Theres a massive contingent that arrives from asia, specifically china and south korea. Shareholders came from australia, from europe, from south america. At a certain point, specifically right before the meeting kicks off at 9 00 a. M. On saturday, you can see people running all over the place but when buffett walks the floor, the exhibition floor, there this is mad crush of people around him. Shareholders, press from 100 plus media outlets, weve got employees of berkshire businesses from dairy queen, froot of tfr fruit of the loom, et cetera. Social distancing would be very hard to enforce. Berkshire hathaway has a lot of elderly shear holders. He would never want to endanger anybody in a massive exhibition ha hall. When i pointed out that at age 89 hes actually himself in the bulls eye zone for people susceptible to catching it, buffett as always, hes always one to stay rational and levelheaded. He joked when the authorities order me to leave and work from home i tell them my home is the office. We can look at berkshire shares right now. At last check they were down several percentage points, i believe about 5. 8 for a shares, 6. 5 for b shares. We do expect a proxy statement to be out by the end of the week on this. Shareholders should refer to the Berkshire Hathaway website where the company will update as soon as they make a decision. To this breaking news and it may very well be good news. Drug developer Emergent Biosolutions saying a Clinical Trial for a Coronavirus Vaccine could begin as early as july. As confirmed coronavirus cases in the u. S. Explode by more than 500 in just the last four days, now 36 confirmed deaths in the u. S. , they say they could also have a rescue therapy ready for trials in six months. They are manufacturing vaccines from the blood of recovered coronavirus patients and the other from the blood of immunize ed forces. Lets bring in robert kraemer. Sir, get to the news here. Yesterday i heard you guys were going to have the vaccine ready for trials by september. Has that timeline changed and if so, to what . Just to be really clear, we are working on two different tracks in parallel. First of all, we have partnered with novavax to develop and manufacture their vaccine candidate and separately, we are working to develop therapeutic treatments using our own Platform Technology that has been proven to be successful, safe and effective in protecting against things like anthrax and botulism and smallpox. So the benefit of our proprietary platform is that we have its tried and true, we have a number of fda approved and licensed therapeutics that have been developed on the backbone of this platform so our objective here is to modify that to be applied to the coronavirus such that we are preparing and developing a treatment thats used in two different patient populations. First of all, for individuals who are at risk, so if they are working in a nursing home or hospital or if folks are immunecompromised, this product would protect them. Separately for individuals who are hospitalized and presenting severe complications because of coronavirus, this may be the product that is used as a rescue therapy to basically save their life. So two different programs, a vaccine as well as two different therapeutic products. Liz look, this is secondary here. The stock is moving higher, though, and im guessing its because you have changed the timeline to just four months versus out to september. Which part of this do you expect to begin in july . The therapeutic treatment side, we expect to be in the clinic later this summer and expect to be in a phase 2 Clinical Trial and if as we are confident that that product will be shown to be safe and effective, then we will be working with fda and hhs to make it available to a wider audience of patients who need the product. Liz how are you doing that . Because july is sooner than we think and it cant come soon enough for what you folks are all working so incredibly hard at emergent to do and are you working 24 7 . Describe to our viewers how you expect to get this done faster. We have an incredibly talented Employee Base of 1800 folks, liz. Theyre working across vaccine development, therapeutic development. We have a complete network of manufacturing facilities located mostly in the United States. This is essentially what we do. Our company was founded 21 years ago around a mission to partner with governments and ngos to come up with durable longterm solutions for Public Health threats. So i dont want to say we live to do this but this is in our sweet spot. This is what we are better doing than anybody else in the world. Liz is it also in your sweet spot to deploy it . How quickly once you get it can you deploy it across the nation . Thats a matter that we will obviously be coordinating with the Public Health authorities, including within hhs. Our focus is on making sure that as quickly as we can, we can bring these two therapeutic products as well as the vaccine to the market. Liz well, godspeed, sir. Godspeed to you and your employees. Emergent bio. Thank you very much for joining us. Thanks, liz. Liz all right. The dow is now on pace for the worst point loss in history. With the closing bell ringing in 38 minutes, the dow is down 2,026. We have the s p lower by 224. I dont want to ignore the russell. Please. The russell, this is the small caps, it is down 10. 2 , compared to the dow which is down 8. 7 . These are small and midcaps. These are the Growth Engine companies of the United States of america. So this has become a real issue. This is intraday but i believe one of the traders was telling me this morning at least, i believe it was down 10 at that point, the russell is now below the level that it was on election day or the day after election day when President Trump was elected. So the russell is showing some fractures, certainly, here on this level, losing about 130 points. Boeing still rounding out the bottom of the dow 30 heat map, alongside dow and ibm, along with disney. Shares of the mouse house are falling as disney paris has now suspended parades and other outdoor shows after reports that three park employees have tested positive for the pathogen. Total number of coronavirus cases in france now stands at 2,281. The death toll now at 61. French president macron calling the virus the worst Health Crisis in his country in a century. Disney down 11. 6 or 12. 33 to the downside. It is now below a hundred bucks. It was back in november that disney hit an alltime high of 153. Let us check right now. Again, im checking this every minute. We are 36 minutes away from the closing bell. We can say right now there is not a single sector of the s p 500 that is in the green right now. Among those getting hit the hardest is the very sector whose ceos just yesterday met with President Trump and told him the outbreak is not a financial crisis. It still might not be. They might be right. But you have titans right now citigroup down 13 , bank of america down 8 , Jpmorgan Chase losing another 5 . All of them firmly in the red as well as morgan stanley, goldman sachs, wells fargo. Morgan down 12 . Yeah. Wells down 14 . Goldman sachs losing ten full percentage points. This as capitol hill struggles to cobble together a coronavirus stimulus plan. So moving that aside for the moment, what is washington doing . Fox news contributor robert wolf and former ceo and chairman of ubs america joins us now. Before we get to washington, what do you make of the financial names here . This is really looking stressful for them. Yeah. So liz, i have been on a bunch of shows the last week and spoke to you quite often. This is not surprising to me. I know your viewers wont like this. When larry kudlow said to buy the dip, i profusely said that wasnt a smart move. I didnt think the feds 50 basis point was going to do much. This is not a Lehman Brothers type crisis. This is not where the banks have deep leverage, where the households have deep leverage, where the consumers have leverage. This is much more like a post11 type crisis where we have to get our hands around two things, confidence in the system meaning contain the coronavirus, and have a real tactical stimulus package. I was also not for the payroll tax cut. I dont think that does a lot by dribbling it out. We need to be very strategic here. And im not surprised by the banks. You have Interest Rates at 1 and going lower so the Net Interest Margin is going to get hit and theyre big providers of lending contracts to the Energy Companies so they will get hit there, too. That being said, they are in good shape from a risk capital perspective. Liz all right. You talked about tactical moves. What should they look like . I dont know if you just heard Scott Shellady, one of our traders from the cme, bluntly saying unless the fed can cryogeniccally freezes all until the virus goes away, obviously being facetious there, but the Federal Reserve cannot make mr. And mrs. Everyman get out to chinatown and have dinner. I just canceled three dinner reservations in colorado. I canceled my flight. My kids, everybody, we are not going, on orders from my sisterinlaw, the epidemiologist, who said its a hard no if you are asking me. So i cant be the only one. We know this is happening. What is the answer . What should it look like from inside the beltway . Yeah. You know, i had these meetings as you mentioned with both bush 43 and obama 44, and this is a very different situation. I think the tactics i would i dont here is i would use, th few of them. I have spoken to a few of his advisers on things i would do differently. One, on the paid leave, make sure we take care of those people that have to go home. You absolutely should be extending unemployment benefits. Thats a given. We should make sure in my opinion that we are looking at sectors like travel and leisure, the Airline Industry and energy industry. Liz can i bring up travel and leisure . We just showed the italian banks. Italy is sealed off. We know last night, President Trump said no more flights allowed to come into the United States from italy or all of europe, for that matter. These italian banks, una credito is a 4 stock. They are 5, 9 stocks. What happens if an italian bank fails . Theres a big difference between the italian banks and u. S. Banks. I need to be clear with you. Liz of course. Of course. But its a domino. Absolutely, what happens with the italian banks, no different than during the great recession. They can go into conservatorsh p conservatorship. They could get bailed out or get loans from the government. U. S. Banks are very well capitalized. When i was at ubs we were 55 times levered. Today they are 15 times levered or less. The risk capital underpinning these banks are real. There is not a situation with the banks. Its not a banking issue at all. Very different from lehman. Theres not leverage in the em is it. Thats why in my opinion, this is not about the fed. Sure, can the fed put in some stimulus and will the market feel a little better, yes, but like you say, the consumer liz not much. Is not going to make a difference in his or her habits which is 75 of the u. S. Gdp is consumer. We have to do some really tough things and i know that maybe your viewers wont like it but in the u. S. , sometimes we do pick winners and losers. We actually have to pick some winners here. We have to make sure we are helping those industries most impacted immediately, immediately, immediately, because when we go into a global recession, which we are probably going into, well do Different Things then. Today, you have to do special things for these haveindustries. Liz but if we do that, call them what they are, bailouts, dont they have to shoulder, dont they have to cut some ceo compensation . Dont thep hay have to shouldere of the blame . Listen, i can go through what each industry may or may not have to do to make sure this is not just the burden of the taxpayers. You can do Different Things where government maybe guarantees the interest but they have the principal and theres a payback. Theres tons of things you can do. Problem is, were not doing them. The president spoke for 11 minutes and the market told you just now what they thought of that speech. No disrespect, but theres Better Things we can do and advisers need to step up. Liz there were some inaccuracies that had to be corrected later last night. Robert wolf, thank you. 30 minutes before the closing bell rings. Lets reset and show the markets. Dow jones industrials look to be heading a little bit further down, unfortunately, if you are long the market. Dow is now down 2,108. The russell down 135 points, 10. 7 loss. S p down 8 or 234 points. Biggest point losses in history and so where we close is anybodys guess, whether its above or below, but we know we are in bear markets for dow, nasdaq and s p. Lets talk about some names that list on several of these exchanges. Google, microsoft, netflix, facebook, they are taking major hits right now. You could argue that it is netflix thats taken the biggest smackdown, down about 10 which is odd considering people are going to be staying home and probably dialing up their subscriptions to stay home and stream some videos. Apple, which yesterday announced the closure of all 17 Retail Stores on the ground in italy, is a big tech name bearing the brunt at this hour. And the suppliers, too. Kristina is on the floor of the nyse here. Tell us about whats happening there. Kristina a lot of analysts are weighing in right now, putting out reports. One from keybank believes the supply chain for apple is actually going to continue to get hit. More specifically, because the parts, a lot of them do come from china but the fact you are closing a lot of of the italian or all of the italian stores, so analysts did weigh in on the foot traffic being a lot lower and then possibly the pro and mac models not selling as much because of that. We already saw with the chinese numbers just this past month in february that they sold a little less than 500 million iphones. That was way lower than what was expected. We are seeing bank of america, ey also had a price cut on apple and theres one report, you know theres mac rumors, cult of mac blog, they are considering canceling their big reveal when they launch their new iphone. This would potentially be the iphone 9s for the end of march 31st. That could be the next scenario we are seeing right now. I would like to point out, look at apple shares, they are 252. 08, down 22. Its not just apple. We are talking about netflix here. Usually these are seen as value not value but what you want to hold in your portfolio, yet its part of the broader selloff. Im going to throw it back to you. Seems like apple is just part of it. Liz okay. I have been talking to some traders while you were doing that and kristina, again, 27 minutes before the closing bell rings, some of the traders are saying they are keeping their eye on whether we see any buy on the close or sell on the close orders. That is going to be a trigger and weve got to keep watching for that. I will let you know because i have been sort of grabbing some of the traders as they walk by, trying to egg them on to get an answer. Right now the dow is down 2,050 points. We should talk about the cme group. Cme group is the Worlds Largest futures Trading Floor, derivatives floor and exchange on planet earth, and it is closing its floor tomorrow after the day ends, after the trading session ends. This is a precaution to help stem the spread of the coronavirus. Of course, the cme is in chicago but when the Trading Floor will be reopened, no word. No word on when they will reopen it. Lets get to Charlie Gasparino who has been tracking every move made by all the exchanges in response to the coronavirus. First, charlie, youve got info on how the banks are handling the crisis today. It might be different from yesterday. Charlie yeah. Listen, they are definitely stepping up their efforts to prepare for, you know, major parts of their work forces to work from home. Theres no doubt about this. Lots of rumors out there that ubs, merrill, smith barney thats now part of morgan stanley, that those major borrow Brokerage Firms will have brokers work from home. Basically anybody that can work from home, they are planning, their plans are they should be prepared to go imminently and work from home. They havent given the order yet but thats what we are hearing right now. The firms arent essentially denying that. Thats where we are there. The other interesting thing is the heed fed move which i kind telegraphed earlier today on cavutos show, theres a lot of traders in the market saying the fed would have to come in, provide some liquidity. What does that mean . Throw some money and bonds out there so people can borrow and use bonds as collateral, put that in the shortterm market. They are doing that. But if you look at the market now, despite an early respite from the selloff, it didnt calm the panic. Heres what im getting from hedge funds, liz. We are in a panic right now. People are indiscriminately selling everything, blowing through positions. How do you stop a panic . The only thing i can tell you is that the last time i covered a panic, a real panic, was in 2008. The way tim geithner, paulson, bernanke, dealt with it and a few others, was to throw the kitchen sink at things. A lot of what they did was through monetary policy, through takeovers of certain impaired institutions. Thank god we dont have the impaired institutions part of it. But i think what you are probably going to see because this is an oldfashioned panic, how do you stop a bank run . You have to throw get confidence back in the system. You are going to see everything, i think, from tax cuts to giving checks to people and an additional monetary stimulus in the next couple days, because theres only one way to stop a panic and thats to tell the markets you cant, you know, weve got your back a little bit. Theyre not doing it just yet because liz steve mnuchin, the treasury secretary, i believe yesterday said that major intervention by the treasury wasnt really needed at the moment. Charlie at the moment. Liz i just dont know if the Federal Reserve should be the Fire Department putting out every fire. Charlie at some point it shouldnt be. By the way, we should point out the Treasury Department stepped up to the plate back in 2008. It was a bailout package, it was fiscal stimulus. They threw everything at it. You just might need something on that, you know, maybe not that scale, maybe not that exact remedy, because its a different crisis here, but something to stop people from thinking were going to zero. Because even in worst case scenarios, i speak to doctors a lot, my brother is an icu specialist, chairman of medicine at brooklyn hospital. The contagion rate of this thing is great, it can cause a lot of problems, the mortality rate is not at catastrophic levels. The markets are acting as if, you know, its major mortality rates here. Im not downplaying anything, just giving you what i know from an expert. Again, when you have a panic, when you have people believing the worst case scenario, what do you do . What they did in 2008 was throw the kitchen sink at things. Maybe they got to start thinking that and now we are heading towards the weekend. My guess, since i cover this other times liz charlie, guess what . A trader just told me he needs to see the 2500 level of the s p 500 hold today. We are at 2507. Charlie i know. Were close to that. I mean, today i would just wash away. What i would say is this, liz. I would say, you know, the next 48 hours are going to be key for policy makers. Something is going to come out of washington. They cant keep this going. Liz nice doggy. Im not wrapping you. I have to go. Dont yell. Charlie i just want to say one thing. I was not talking to you when that happened. Liz well, whoever you were all right. Charlie, thank you. We are checking the clock. We are 22 minutes away from the closing bell. Just like that, more dominos are falling when it comes to college and university closures. One after another, they are announcing they are suspending classes, asking students to pack up and go home. The latest names, well, we knew about berkeley and columbia, princeton, harvard, stanford, forwardh fordham. Add barnard, tufts and the university of chicago to that list. The virus, of course, changes the whole landscape of work and communication from home as we know it. Listen to what microsoft 365 corporate vp, who runs Microsoft Teams, jared spataro, said yesterday about how the tech titan is dealing with the situation and helping others work from home. What kind of uptick are you seeing in the usage of Microsoft Teams which enables people and groups to Work Together remotely . We have been tracking this since the outbreak started in china, and since january 31st we have seen a 500 increase in the usage of teams there. Liz Italian Government is saying we are shutting down for the moment. We dont want people leaving, we dont want them coming in. What are you seeing on the ground there . We are able to track whats happening with teams and we have seen 100 increase in the teams usage there. Liz but from Microsoft Teams to the cfo of zoom, kelly steckelburg joins us live in a fox business exclusive. Thank you for joining us. Zoom was specifically designed from the start to address the most difficult component of communications, video. What kind of uptick have you at zoom been seeing since the coronavirus outbreak . So you are exactly right, zoom was built from the very beginning to be a video first application, and what we have seen in the last six weeks certainly is unprecedented in terms of demand. So at the end of january, we were on a run rate of providing 100 billion annual Meeting Minutes and we have seen a significant increase in the last six weeks since then. We have seen this across universities, as you talked about, many of those names you mentioned are harvard, stanford, most recently usc, now holding all their Classes Online and asking their students to work from home, as well as many of the Tech Industries we have seen in the bay area are also working from home, including zoom. Liz we know that it is so crucial to be able to teach from home, even for middle schools and high schools, et cetera. But i understand that you have lifted the time limits on the free video calls, the free version, for china and i believe as well for schools in japan, italy and also the u. S. , correct . But. Thats exactly right. Liz will you be able to keep up with all this demand as we see we are not out of the woods just yet . Yes. In fact, we are monitoring this every day and there are a handful of schools that i expect to be added to that list, where the product would be provided free later this week. We have seen since friday over 1,000k through 12 schools come forward and request the free version of our product. Liz wow. Yeah, amazing demand. And yes, we monitor our capacity in our servers and data centers every single day and we are doing everything we can, we have 17 data centers around the globe and we are in the process of adding servers and capacity to almost every single one of them as we speak, and are very proud of the ability to continue to support both our free and paid customers during this toime. Liz how is the System Holding up right now . Have you seen any glitches . Have you seen any problems whatsoever as daily users are really exponentially increasing . We havent. We typically run our data centers at 50 of peak capacity so that means theres lots of room and the data centers are built to support each other, meaning if theres a surge in traffic in one data center, that will divert that traffic to another to share the resources. Liz that makes sense. Tell me what you expect to learn from this situation, because look, this Trading Floor is open but we know tomorrow, the cme, the chicago mercantile exchange, will close after the close of the session. Weve got so Many Companies telling their workers to do the social distancing and stay at home, work from home. How will this change the future as hopefully one day when this whole nightmare goes away and dies down, and it will eventually, what will we have learned about how we work in this day and age . So the demand really started six weeks ago in asia. We saw it two weeks ago really start to increase in europe and in the last week, it shift toed the u. S. These are organizations coming to us saying we really need to understand what our Business Continuity plan is, how we keep our employees safe but also make them productive. I think what you are going to see is over the next few weeks, as you were just talking about some of the, back to your previous guest talking about banks considering this, and i think people are going to start to realize with great products like zoom, you can work from home and still have the same level of productivity if not even more so productive because you dont have to commute, and the same level of rapport. We hear these great Human Interest stories about people that are having like virtual happy hours at 5 00 via zoom. So people still staying connected, yet able to work in the safety of their home. I dont think its going to go back to normal after the virus subsides. Liz one last quick question. Forgive me if you said it and i missed it. I know your recent average before this nightmare was 85,000 average daily downloads. What is it now for the month of march so far . We havent disclosed that number but you can look at various outside sources and you can see that it has increased exponentially in the last liz i heard around 240,000. Is that sort of ballpark . You are in the range. Yes. Liz okay. Okay. Kelly, to you and your team, thank you for all youre doing for educators around the nation and of course, the world. We appreciate it. Kelly steckelberg, zoom video communications, up 61 plus year to date. The selloff is also seeing investors turn sour on lululemon. The yoga apparel maker falling after cowan cut its price target on shares by 14 to 265. We are at 168 and change. Lulu confirmed it had been forced to close most of its stores in china, the origination of the coronavirus outbreak. Leagues are canceling right and left. Names like nike are tumbling. Right now nike is losing 11. 25 . Its been down 15 over just the brief past session. Call it 14 minutes now before the closing bell rings, Madison Square garden we understand, is that correct, is getting rocked and not in a good way. Home of the New York Knicks and new york rangers slumping at this hour by 10. 5 to the lowest point in more than two years due to the nba and nhl suspending their seasons. Shares right now are down about 23 to 196. 90. I was emailing with the commissioner of the nhl gary bettman last night and he said hes too busy dealing with issues at hand, and that was before they announced they were canceling it but we know the rangers i believe, up until a couple hours ago, were still staying in denver. They werent getting on a plane. Connell now the option to play games would have been taken away from them anyway with the movement in new york to cancel large gatherings. The leagues for the most part got out ahead of that maybe with the exception of some of the College Basketball competitions. I know the east conference was having its basketball tournament at the garden today and they started the game and they werent sure they were going to. They started, then had to call it off at halftime. That happened a lot at ncaa conference tournaments, big ten, acc, s. E. C. There have been a lot of them being canceled. We dont know about the big dance yet. I dont believe they put another statement out. I know yesterday the ncaa said they would play with no fans. People are waiting for an update on that. In addition to the nba which started this last night, the other big one, well, Major League Soccer as well suspended its season. The other big announcement to come today was Major League Baseball and they are trying to take a wait and see on this. They will delay the opening day of Major League Baseball by at least two weeks. We have been talking about it. There are a lot of other jobs and Service Industries and the like that surround these professional sports leagues, but today has been the day when the people who make decisions, whether its in government or private business are realizing looking at data that the only way that countries and other parts of the world have been able to control this outbreak have been to put the shutdowns in place and they are almost all of them following that. Liz we will see you at the top of the hour. Connell mcshane. The dow down 2,113 points. The low of the session, loss of 2,255 points. It was just last tuesday, time is really flying, when the Federal Reserve surprised investors with a 50 basis point cut. Allianz chief chiadviser mohamm elerian said his biggest worry at that point was liquidity. Just hours ago, as you know, the Federal Reserve felt it had to inject 1. 5 trillion into the bond market to prevent unusual disruptions as they put it in the markets, and that caused the dow to at least spike off the ground, but heading back down at the moment. What does this all mean . We bring back mohammad elerian, chief economist and market guru at allianz. You said we are going to have pockets of illiquidity and market dislocations. You also said just dont trade at the moment. Just wait. Now, you appear to be right on both fronts. What do you see now . So liz, i wish i could tell you that i see calmer waters in front of us but i do not. Waters are going to get even choppier. They will get choppier economically. I shared with you this notion of economic sudden stops when everything comes to a halt in a way we never expected. They are going to come also come under pressure because we have a lot of forced selling that hasnt gone through yet. You have a lot of track longs, a lot of redemptions going on from etfs and mutual funds. Im afraid its going to get even more treacherous in the next few days and weeks. Liz well, i was looking at some etfs like hyg and j k, junk and high yield, and youve got to tell me, do those reflect anything that is disconcerting . Hyg down 3. 5 . It was lower earlier by about 5 . Tell me what our investor viewers should look out for. Tell us where that hockey puck is going to be. Hyg, just to put it, has fallen from 88 to 77 just like that. Thats a massive fall. Remember, these are bonds. The reason i think there are three things going on again. One is that people are simply recognizing that these markets were overvalued. We as investors were lulled into a sense of complacency by this very unhealthy codependency between Central Banks and the markets. Liz by any stretch, today is proof that the fed jumped in. I didnt even say it was helicopter ben bernanke. Its more like what we are seeing at the moment, as jay powell just fluttering money into the system which it needs, im not saying he shouldnt do it, but the codependency continues. Well, this time around, we didnt all rush in to buy the dip in a sustainable way. Yes, we did initially but we lost those gains. I think thats important. The fed announced 1. 5 trillion, liz, 1. 5 trillion, yet the market bounce did not hold. Liz okay. Final finally, what are you looking for . I keep asking our guests, what sign will they look for as an indicator that things have stabilized . I think its also important to note that i believe it took 91 days for the markets to bottom back in 2008 when the first t. A. R. P. , the troubled asset relief plan that congress neglected to pass, the market gyrated all over the place, it took 91 days later for the market to actually bottom. We may have a long road ahead or not as long this time around . So the real answer depends on the medical aspect. This road can be very short if we find a way quickly of containing the virus and of increasing immunity. A vaccine would do it. I dont think unfortunately thats going to happen the next few weeks so i think we are going to see further economic, financial and technical pressures on markets. Liz emergent just told us a few minutes ago that they may have moved up the time point on the calendar to july when they will be able to do some testing for a possible vaccine. Thank you for jumping in on the phone with us. Mohammad elerian, thank you, sir. All right. Lets bring our traders back in. Now we have call it seven minutes to go, seven minutes, and we are now about 32 points above the 2500 point level for the s p that at least one trader here on the floor says we got to hold 2500. Lets bring back scott, phil and sarge. Phil, to you first. Can we hold it, and what do you expect to see . Do you expect to see at least a buy order or sell orders on the close . They are kind of equalled out. We are seeing buying and selling coming in. It comes in a little closer to the close, you will see a lot of orders start to come in. It does seem like the panic selling has subsided a little bit. Have you ever seen anything like that, the worst level since 2008, so you know you are seeing a lot of fear here. Look at gold today, gold is getting absolutely crushed today. Part of the problem with that, of course, is concerns that Central Bank Action is going to have to be taken. Central banks may have to sell gold to raise money for some stimulus programs. Thats another reason why we are going to see that with gold. Liz i keep hearing from a lot of viewers who are driving at this hour and listening on xm 113, we have not forgotten you. Gold is down 70 to 1572. Scott bauer, let me pick your brain at the moment. What are you seeing in the last six minutes . You know what, a lot of indecision. Like phil said, we see this order flow and it really is pretty balanced out. Now, if you look at the last week and a half, outside of yesterday and today, we have been flipflopping day to day these s p moves above 2 . One day up, one day down. Yesterday and today, first time we have had consecutive days in the same direction. Does that mean that we move the other opposite direction tomorrow . Who knows. But im seeing a lot of pairing off in the marketplace right now. I dont think we are going to get a big move between now and the next five minutes or so from where we are right here. I think that people want to just collect themselves. Talk about that level that you had just talked about, that 2530 level. We will see a lot of that in the news overnight tonight. You will see a lot of people digesting that level to see if that will really hold. Do we think we will get a bounceback . I dont think we will get any sort of significant bounceback until the administration comes out with a plan, good, bad or indifferent. The unknown of what they may do is really spiking the selloff today. Liz sarge, okay, four minutes, about four minutes left to trade, four and a half minutes. Give me your sense of the feel we expect for tomorrow. Could we see a bounce . I know its a tough question to answer because the market has been so volatile. Give me your sense of what youre seeing. We could see a bounce. A technical bounce. Theres about 4 million worth of sell orders in the marketplace right now for the close. All right . Across the s p 500. So its pretty heavy. You are seeing some pressure right now. 2500 is where we have held the line about four or five times today. We need to hold that line. If we open tomorrow morning below 2500, its going to be resistance and thats a highway to 2350. Thats 150 points. But that is december 2008 i believe. Liz were at four minutes away from the closing bell. Dow jones industrials down 2134 will go down as a historic day. Dow, nasdaq, s p in a bear market at the moment. Were looking heavily leveraged entire sectors such as energy. As we check the dow, look at big drop in major averages, small caps getting absolutely trounced in the selloff. Russell 2000, flip it over, down 10. 4 , that is the biggest intraday percentage loss out of dow, s p and nasdaq. Look at bitcoin. Bitcoin earlier was getting absolutely pummeled. I believe it was below 6,000 earlier. Still getting clocked down 1798 bucks per coin. To the man who has 19 billion in assets, Huntington Private Bank chief Investment Officer john augustine. John, were you buying at all in the late minutes of the session . No. Too much panic today. Too much violent panic today. Weve been talking to customers the last two days. Making sure we have the right asset allocation. Making sure cash needs are met, making sure time horizon are updated. We talk about rebalancing. From our standpoint thats what weve been doing in the volatility. Liz what is the biggest challenge now as a chief Investment Officer . Income. Were actually more worried about the fixed income markets than we are the equity markets. The equity markets are pretty much already down what they do in the average bear market. It is that income, that 10year below 1 . It is the customer that is going to expect income two months from now that will be cut in half. That is what is on our mind right now, liz. Liz were two minutes away from the closing bell. Were down 2229 and falling. Low of the session. A loss of 2255. John, do you think the economy will fall into recession . I ask you that because weve had traders all day long saying people and their behavior are changing. They will markedly change. They will change back at some but right now doesnt look good for q1 or does it . No. We took our risk of recession up from 30 to 50 today. Our Investment Strategy team and economists did. Reason we did that, two things, liz, the shutdowns. Today is shutdown day. Theyre not going two weeks like they used to. Now theyre going 30 or 45 days. Now they were going two weeks. Now it is a different environment. We went up from 30 to 50 of risk of recession next six to 12 months. We expect it will be short. We dont know the health end. That is on our mind first. Liz we hit lows of the session for the Dow Jones Industrials. Thanks to john augustine. Hang in there. Were down down. We have albeit, a temporary one a new normal. The new normal is changing to the Supreme Court to, broadway theaters. To Movie Theaters. To gathers of 100 people or more in the state of ohio. All those news pieces breaking today as markets get hammered. We are closing at the lows of the session for the dow and s p 500 as well. S p not holding the 2500 level. It closes at 2479 and change. [closing bell rings] there is the closing bell. We look to see the bull run at least for now is over. A bear market for the major averages, the worst point loss in history for the dow. That is the claman countdown. Time for after the bell. Connell collapse on wall street today amid a day of big changes across the country. All three major averages officially closing in bear market territory as event after event around the nation has to be called off because of the coronavirus. Trading was even temporarily halted for second time this week. That was early in the day. Then the selling resumed. Were down 10 . This is the worst day since the crash of 87 for the dow, 2352 points to the downside. Im connell shane. Melisssa wow, im melissa francis. The biggest decline for both indices since the 2018 financial crisis