Stabilize and support the financial system, support and rescue. Its moving quickly. On the ground, it is grim. 22 states have deployed the national guard. The virus is now infected all 50 states and d. C. And this is a first, kansas closes all schools for the rest of the school year. Its beginning to sink in that many of us will be confined to our homes for weeks and millions will not be getting a paycheck. You are waking up to an anxious america. Theres an eerie feeling when you see empty cities, shuttered businesses and a country thats really grinding to a halt. Now the markets. Limit down before the opening bell. We might be 5 or 6 down in early trading. Remember, if the s p goes down 7 trading is halted for 15 minutes. We have already seen that twice. The dow, s p, nasdaq limit down, big red arrows right there. Look at this. The yield on the tenyear treasury is now 1. 12 . So money is coming out, repeat, out of treasuries. Why is that . In part because some investors have to cover their losses in stocks so theyre selling treasuries and having to cover their stocks. Ten days ago, the yield was 0. 3 . Now its 1. 1 . We have never seen anything like this before. We had better get to politics. Joe biden sweeps the three big primaries, florida, arizona, illinois. He won every county in florida, beating Bernie Sanders 61 to 22 . The results, though, heavily skewed by a low turnout. With the virus raging and the economy at a standstill, party politics, doesnt it seem almost irrelevant. We will deal with it all. We will start with your money. Art laffer, former reagan economist, with us now. I call this a support and rescue plan. I dont think its a stimulus plan because you cant stimulate this economy right now. Support and rescue. What do you make of it . I dont make much of it, frankly. I think its a silly plan to give families 1,000 each. Its what George Mcgovern wanted to do with his grant. It makes no sense whatsoever. It doesnt lead to good outcomes, believe me when i tell you this. The other thing is stuart im sorry, ive got to interrupt. There are literally tens of millions of people in this country who next week wont get a paycheck. They might not even get a paycheck at the end of this week. What are they going to do . A government surely cant just stand back and say wait a minute, wait a minute, youre on your own. Theyve got to offer some help. Let me just say its not compassionate giving away other peoples money. Thats not compassion, stuart. Stuart yes, it is. Let me say the payroll tax cut, for the next seven months, will provide jobs, not welfare, not pity. You got to bring employment back. Its a terrible situation what we have here. Stuart wait, wait. How can you possibly bring the economy back when its ordered to shut down . You cant. Thats why you do the payroll tax cut. Once this thing is over youve got to bring it back quickly or it will extend itself for a long period of time. It really will. If thats what we want, god bless them. You know i love this administration. You know i think theyre the best administration probably ever. But i think this plan of the 1,000 grant makes no sense and i think the payroll tax waiver is the only way to go to bring it back at all. Theres a lot of damage being done to the economy. People are going to suffer. Thats sad. The coronavirus is a horrible thing that hit us. But by giving away the money and bailing people out of trouble by putting other people into trouble is not the answer. We will recover but it will just be a lot slower. Stuart lets agree to disagree on this and look to when this is over. Thats fair. Stuart were all right, you and i. When its over, i you and i are great together, grandfather. Stuart youre a great grandfather. Seriously, when this thing is over and it will be over, are we in for a gigantic surge in the economy . Bringing it all back . Are we . Not if you do what youre talking about doing. No, you wont. Youll have a recovery like the obama recovery and that will be the problem there. If you go back and look at my articles and discussions on this show in 2008 and 2009, what we should have is a tax holiday. A period so people find it really attractive to work, so businesses find it really attractive to employ people, to bounce back as fast as possible. The damage has been done by the coronavirus. Im very sorry of that. But you cant make it up by giving people 1,000 checks. That just makes it worse. Stuart all right. Art, good stuff. Stay there for a second. Lets move on im sorry. Stuart dont worry. Just stay there. I dont mean to be grumpy. Stuart youre not, youre not. Youre all right. Were both smiling. Thats a good thing. On a day like this, thats a very good thing. Shah gilani is joining us. All right, shah, i think i have asked this question a thousand times. I will ask it again. Do you see as of right now any kind of bottom for this market . No, stuart, i dont. Looking at the numbers that im looking at and going a lot deeper than you see on the surface in terms of the benchmarks, im looking whats happening to the Financial Markets underneath in terms of the mechanics of the market. Im seeing some pretty serious implications for equities. If you look at the bond market in particular, what you brought up earlier, the fact the yield on the tenyear is moving around the way it is is in itself unprecedented. Thats creating tremendous tumult in the bond world. For investors, for traders, for big banks, this kind of movement, that kind of volatility on that kind of level in the bond market is unprecedented. Thats creating damage in and of its own. That partly is selling as you said earlier, when assets have to be sold and people are getting margin calls they need to sell everything, especially if they have profits in some of them, which they did. Thats creating larger problems. The larger picture is i believe the economy will take a good while to recover. I dont think we are near the bottom of where the market has to go. Frankly, i dont mean to frighten your viewers but i think we have at least another 15 to go from here. I think the market maybe takes a rest at 18,000 on the dow. That would be 39 off of the highs. Stuart our viewers are seeing on the screen now oil at 23. 96 a barrel, down nearly three bucks. Shah, is that also a destabilizing thing, even though it looks like good news for gas prices, is it destabilizing in an economic sense . Yes, it is. Its destabilizing for the simple reason multiple reasons, but the simple reason in the United States is this is, in my opinion, this is an attack by russia and saudi arabia on american energy. Whats going to happen is these Leveraged Energy companies in the United States that have done very well are now under pressure, lot of them arent going to make it. They will need probably a federal rescue because the oil patch is so important now to Americans Energy independence, it is now under tremendous stress because of the leverage those companies have taken out, the debt they have, they are not going to be able to service it with oil at this price. I think this is a concerted effort by saudis and russia to actually level the u. S. Playing field in terms of energy. Stuart at the moment, its working. Shah, stay there, please. Art laffer, stay there. I want to get to this news which is a first that i can see, and that is kansas city schools closing for the rest of the school im sorry, kansas state, im sorry. Ashley the entire state. Stuart closed for the rest of the school year. Ashley rest of the school year. The decision made by the kansas governor. In a statement she said look, the reality of this pandemic is that it cannot be controlled statewide if the School Buildings return to normal operations. Its just not feasible, says the governor. There has only been 17 cases so far in the entire state of kansas, one death, but it is in fact the very first state to declare schools closed for the remainder of the academic year, k through 12, through may or june depending on the school district. Stuart then they go on school vacation. Ashley summer break. Stuart you are really talking in kansas, the state, you are talking about kids being at home probably until september. Labor day. Ashley correct. Stuart just after, maybe. Ashley absolutely. Stuart trying to do the math. Thats six months. Ashley yes. Stuart am i right that california is also considering ashley the governor of california, gavin newsom, saying this looks like, this is a very sobering thing to say in his statement, but he says we may very likely have to do exactly the same as kansas is doing, meaning schools will be closed may through june. There are already six Million Students in california already at home. 99 of state schools in california are closed. Thats just you know, i also just this headline came down, the u. N. Estimates globally 849 million children are now out of school around the world. Stuart the crunch is obvious. Ashley oh, yes. Stuart when you are forced to stay home with your children. We are doing this on a mass basis. Never seen anything like it. That forces a halt to the economy. Ashley of course it does. Stuart youve got to stay home, somebodys got to stay home with the kids, you dont work and the economy doesnt function. Thats a key figure. Ashley exactly. Just another element of the whole thing grinding to a halt, if you want, you know, the cog starting to slow down. Stuart what do you do about graduation, kids graduating . Ashley you cant have it, can you . Stuart s. A. T. Exams. Ashley you cant have it. Cant have anyone gathering together. Stuart i dont have a solution to that but i can see the consequences a mile off. Lets bring in susan. This is strange. Apple releasing new products . Tell me. Susan without an event and through press release. Its a very rare occurrence for apple. Just about an hour ago they say look, we have two new ipads for you to buy. Ipad pros. It starts with two sizes, 11 inches and 12. 9, starting price 799 and the camera system is high tech because you can scan 3d objects with this new camera system in the ipad. Also, they launch a new mac book air as well, starting at 999. They are giving you a lot of storage on the base model. You are starting at 256 gigab e gigabyt gigabytes. What about the cheap iphone . Not part of this announcement. There are concerns maybe they will just scrap it. We were expecting some event in march or april for its launch. This was supposed to be the cheaper iphone for the masses in i guess developing economies like china and india who cant afford these four digit iphones but not the case, apparently. You cant buy it in stores, because apple stores are closed everywhere outside of china until at least they said march 27th, now they are saying until further notice. Stuart it just seems odd, doesnt it, to be talking about the most valuable company in america in the middle of a virus crisis putting out new products. Susan i agree. Stuart it just seems odd. Susan it does seem odd. As i said to you, they usually have a very splashy unveil for these type of Product Launches but not this time around. Especially in the midst of this crisis. I guess they had these devices lined up and had to get it out there. They do take orders starting on wednesday. Stuart as we have been speaking, the stock has dropped to 239 a share. Susan 100 off the highs. Stuart exactly. A hundred bucks off its highs for a company with 200 billion cash in the bank. How about that. Back to you in a second. I want to go down to the exchange. Kristina partsinevelos there watching what is it, imv. What do they do . Why are they up 42 . Kristina its the hunt for the cure, race for the cure, i should say. Heres another company that has come out and said they are successfully developing a covid19 vaccine, they are doing most of their research in canada. This stock is very thinly traded. We have seen several of these over the past two weeks. This one is below 3 a share. You can see it jumping 42 on the news they are developing this vaccine, hence the reason we have a little bright spot amongst a sea of red today on the market. Stuart thanks very much indeed. I was just listening to ash, whos got a development about new york city. Ashley yeah. Theres been speculation is there going to be a shelter in place by mayor bill de blasio, essentially a lockdown like in the bay area. This headline says the mayor will only do that in consultation with the state of new york. Theres been a bit of conflict between Governor Cuomo and bill de blasio, the new york city mayor, because the mayor has been perhaps a little more severe, i guess you want to say, more stringent with his restrictions. The governor said recently he does not want to quarantine any city, actually quarantine, whereas mayor de blasio said a complete shutdown, shelter in place, could be on the table, could be a possibility. Stuart reading between the lines, if cuomo doesnt want it, cuomo decides, its not going to happen. Ashley correct. Stuart ive got to say im intrigued by that. The idea of locking down a couple million manhattanites, new york city people, doesnt exactly thrill me. Susan, back to you. Lego. Susan store closures. Lego says they are keeping their stores open in china because it looks like coronavirus there, given that we only had two new cases that were domestically originated, might be opening their stores in china. They are in fact opening their stores in china but the rest of the world, closed until march 27th, they say. Stuart wow. One in a long list of major brands that are closing down. Target, theyve got an update on how they are supporting customers, employees. Tell me. Susan the vulnerable, that is the elderly. The first hour of opening stores, they will allow that first hour only for the elderly to shop for the goods that they need which a lot of people say this is a good thing because thats what elderlies need right now which is a quarantine and safe environment. They are also limiting hours as well. All stores will close by 9 00 p. M. No 24hour openings for target. This joins a long list of retailers, macys yesterday said they are closing all north American Stores at least for now, the next few weeks, and adidas joining nike also in shutting up shop as well. Stuart thanks, susan. Let me get back to shah gilani for a second. Shah, you just saw the stock price there of apple. 239 a share. Thats a company with i dont know how much cash its got, im told its about 200 billion. Surely theres value in apple at 239, 240 . Yes. Theres plenty of value in apple. The question is at what level. Maybe at this level but i dont see it because the demand destruction across the globe has been so dramatic and i think its really just picking up in terms of the destruction. Yes, they came out with new products, maybe trying to put forward a good face that we are going to try to continue with our Business Practices and develop and bring out on par with the cycles we had planned in the past, et cetera, business as usual, except consumers are not in the mood to purchase telephones or iphones or ipads at this point. Consumers are in a state of shock, not knowing what the future is going to be. You have been talking about it on your show consistently. The demand destruction in terms of restaurants is phenomenal. All of these Service People and hotel Service People, unbelievable. They are all going to be out of jobs. How are they they are not going to be thinking about buying an iphone or ipad, unfortunately for apple, but this is true for the rest of the economy. Demand destruction cross the economy is just starting to pick up. Its going to be devastating. Stuart hold on, shah. Back to art laffer. Lets get some numbers on this. Weve got the economy at a dead stop. The whole country really is slowing down and some parts of it are closing down. Goldman sachs says in the Second Quarter we will contract, shrink 5 . Whats your number for the Second Quarter, april, may, june . Well, its going to be a large down but let me say this is not demand destruction. This is supply destruction that has happened. Kids going back to out of school, all of the production facilities shut down. Its not a demand problem we are facing. It really is a supply problem. Let me go back to the one, if i can, if 1,000 per family is good, why not make it 10,000 or 20,000 . Then we would have 2. 5 trillion, 5 trillion going to families to stimulate demand for which there is no supply. We need to bring production back in. We need to get control of this disease right away and bring people back. Thats what you got to do. Stuart im sorry i have been in these crises now since 1950s, in the very inner circles. This isnt going to work. Stuart look, may i just say the opposite. Its not a supply problem. Theres plenty of supply if you open the stores and people can go and buy jeans and sweatshirts and shoes. Theyre not. Theyre closing the stores, closing schools, closing restaurants, closing cruise ships, closing airlines. All of those are being closed and not supplying the services. No matter how much you want to fly, there are no planes flying. Stuart you cant demand because you cant go to the store and demand it. We see things opposite and thats a fact. You cant go to the store because they are shutting it down. If you cant go there, you can want to get groceries as much as you want but theyre not there for you. Stuart one quick one. April, may, june, goldman says contraction of 5 . Whats your number . It may be that, even a little more on an annualized basis. Stuart got it. Dont go anywhere. This conversation is not over, young man. Thats a fact. Im captured in the seat. Stuart my producer is saying why cant we be friends. We can and we are. Now then, politics. Cassie smedley is with us, rnc Communications Director. We have had the primaries, joe biden sweeps the three big ones. Irrelevant. To me, politics and the election are on hiatus. What say you . Yeah, thats absolutely right. Youve heard that from the president and his entire team saying this is the time to focus on the American People. This is the time to ensure that weve got great leadership and people can feel confident in the steps that are being taken to get us through this. The president says were at war with the coronavirus. We should all unite behind that common enemy so that when we do come out on the other side of this we can bounce back as an economy. We will bounce back as a country because we are resilient and we are in good shape. Stuart so this election is essentially a referendum on the president S Performance fighting the virus. Well, certainly they will try and make it that and say well, we welcome that, because the president has shown tremendous leadership and calm in the face of everchanging circumstances. He talks about the whole of government approach. I think you should start calling it a whole of america approach. To see our president where he said lets do public and private sector together, every day theres a new issue with the tests or with access to people getting the groceries they need, lets bring everybody in, have a conversation about it and mitigate this as it goes. Thats the benefit of having a businessman in the white house. Thats really the confidence the American People need to get us through this. I think you are seeing that as every single day when he gets behind the podium with his team stuart by the election, come november, come november, if this society is in recession, would you agree the president has a real reelection problem . Well, heres the difference, stuart. President trump, nobody could have foreseen this. We planned for it as best as we could. President trump took steps earlier than anybody even thought he should, especially democrats. But you are seeing voters want a leader in these types of rocky situations and we are getting that. That calm and that leadership, while we dont know what the market might look like, we dont know what the situation might look like, its all hypothetical at this point, we do know we have a leader in the white house and we like what we are seeing from him. I have to tell you, yesterday, i know we arent really talking about politics, but yesterday the president clinched presumptive nominee status for the republican party. Hes going into that with four million more raw votes than bill clinton had which was the last high total for an incumbent. Thats a response that voters are having to the leadership and the results of this president and this presidency. We will see that carry through in november. Stuart okay. Thanks for joining us. We appreciate that. Thanks very much. Ashley let me give you an update on new york city. The mayor bill de blasio says new york city will exceed 1,000 coronavirus cases today, up from 923 yesterday. He says he is quote, almost to the point of recommending shelter in place to the new york governor. Stuart whether the new york governor turns around and says okay, thats another story entirely. Ashley i dont know who will win that argument. Stuart de blasio is saying its almost to the point of asking for it. Right on the brink, arent we. Lets get back to the new york exchange. Kristina following home depot. What have you got . Kristina the reason we are following this stock, yes, its down about 7 . This is with the Broader Market selloff. The company has announced like many other retailers they are changing store hours ever so slightly. They will be opening at the exact same time but they also will be closing at 6 00 p. M. Every single day. Some of these shops are normally open until 9 00, 10 00 p. M. The share price has been doing fairly well. Why is that . Because many people are now at home, using their products more, using their home appliances, so home depot has said they are seeing urgent need for hot water heaters, refrigerators, cleaning supplies, electric plumbing repair, anything to do with harsh weather and they are selling out of these items but home depot also issued a statement saying they plan to be open during these times. They do not plan to close because they feel like they are a vital part of the community. They also announced for their employees, this is a new one, that they will get fulltime employees will get 80 hours of paid sick leave. You are really starting to see Companies Come to the plate and offer more in terms of sick leave for fulltime as well as parttime employees. Stuart good point, wynn, the casino people, will pay their employees fulltime for a month, including tips, by the way. The casino people. I believe facebook is doing something the same. Some corporations ponying up the money because they know employees are suffering. Now a special guest, dr. Paul stoeffels, chief science guy for Johnson Johnson. Welcome to the program. We much need you today. Thanks for being here. How long, can you give us any idea how long until Johnson Johnson can put a treatment for the virus out there . Well, we are working on two pathways. One is on the vaccine and one is on the treatment. Let me start with treatment. What is very important, it can go fast. What we are doing is screening all the existing methods and all the methods we have in phase 3, 2 and 1 so already in the clinics, to see whether any of those have activity on the virus. Stuart doctor, if one of those treatments or drugs that you are testing shows that it has some positive results, how fast can you get it out there to the market . Well, that can be months. But we have to first find one but if theres an existing method, its immediate. If its a phase two method, its a matter of a few weeks to months. But first find one. I cant say we have one today. Stuart how about vaccines . What kind of progress there . What kind of time frame . We are going very very fast. We know the virus [ inaudible ]. At end of march we know we have a vaccine which we can start upscaling and testing and retesting for the clinic. Early november we will have it into the clinic and hopefully early next year in the first quarter, we can bring a vaccine. Whats very important here, we have an existing system which is manufacturing included where we can plug it in and we dont have to change anything. We can work on what we know today, its planned hour by hour, day by day from now until the delivery of the vaccine. Stuart excellent. Doctor, thank you very much indeed for being with us today. We appreciate that. Thank you. We want to bring in dr. Marc siegel. Hes with us this morning again, doing sterling work throughout the show. Theres been a spike in cases just in the last few days in america, because we are now testing a lot more people. Thats accurate, isnt it . Its going to even increase. We are starting to test more people but really, today is a big rollout of those mobile centers that are going around the country to hot spots, 47 of them that are going to be testing thousands per week each. You are going to see an additional couple hundred thousand cases tests, tests, per week. Since they are going to the hot spots for sure you will see thousands of more cases coming over the next few days. Stuart that i suspect will lead to more widespread lockdowns and shelter in place orders, right . Theres no question about that. Obviously we have to keep a very sober and rational view of that because many in the Public Health community suspect that there are thousands of more cases out there, most of them mild, by the way, or even asymptomatic. A study out of china shows a majority of these cases have no symptoms at all. Those may continue to evade detection but that actually is a positive thing, because that would mean that theres many stuart, when you are sick, and you come to the hospital and you end up on a ventilator we know what caused it. But if you are not sick and you are mild, you may not tell anybody, we may not know and the danger there is that that can spread to several people around you who could then spread it to someone in a high risk group. Stuart the worst news in terms of new cases is still to come. I want to leave it there for a second. Johns hopkins researcher, new information about a promising treatment for the virus . Ashley maybe the doc can talk about this. Apparently this Research Showing a lot of promise, readily available antima layerantimala treatment. The first wellcontrolled study showed a lot of promise. 600 milligrams per day up to 60 days, 90 of patients tested negative. 96 of the control group tested positive after six days. In other words, it can fight the virus. Stuart i think you heard that. What do you say . We have been talking about this for days. Its because there are studies out of south korea and china on this. Two treatments look very promising. One is chloroquine, a malaria drug, we talked about coupled with zinc which has antiviral properties. The other is plaquinil. That seems to have more potency and more side effects. Chloroquine is commonly available and cheap and the idea is we can use it offlabel. Its already approved by the fda. We may be able to use it offlabel or get another fda indication quickly on this. Thats very promising. Stuart thank you, doctor. Stay there, please. We need more from you later on. If you are just joining us, the market opens literally in 1 10. You have been seeing a sea of red ink on the screen because all the indicators are limit down. Thats roughly 4 , 4. 5 depending on the index. When we open the market, if the s p 500 goes down 7 , there will be a 15minute pause in the trading session. D. R. Barton is with us. Look, everybody is looking for the bottom. We have 30 seconds. Give me that. Do you see any sign of a bottom here . No sign of a bottom yet, until we see some of the great things you were just talking about come to pass. If some existing drug can come in and help slow this thing down, thats when we will start looking for a bottom. Not until. Stuart its not stimulus or rescue, that kind of thing. No, its a medical response to the virus. That holds the key to looking for the bottom on the market. We will be back to you in a second. Right now, we are pausing, just waiting for the market to open. As you can see, theres usually a crowd at the opening bell. Today, of course, its just individuals keeping well apart. Here we go. 9 30, we are off and running. Lets see how we open. The thing to look at is the s p 500. Already the dow is down 1,000 points. 1,300 points. Completely eradicating any recent gains. The s p 500, we are concentrating on that because if its down 7 , thats the gauge, that takes you if you go down 7 , you pause, hold off for 15 minutes. We have seen that twice before. That has not happened at the opening bell this morning. We were down 5 before. We are down 5. 4 now. Look at that, the dow industrials down 1280. That puts the dow below the 20,000 level. Some people suggested that maybe the 20,000 mark was the low. That would be the bottom. The bounce off that ashley bounce off the bottom. Thats what we talk about. It went below 20,000 yesterday and came back. Stuart now its 19,954. The s p down 137. Thats 5. 4 . I think we should start to show some of the stock prices now. Just go through it. Lets start with big tech. I would suspect its down across the board and im right. Thats not much of a speculation. Amazon down 50 bucks. Google down 62. Facebook all the way back to 139. Microsoft at 139. The high was 190 four weeks ago. Apple is at 243. Keep them flowing. Lots of people looking at these stocks, they own them. How far down are they. The news is grim. The financials are taking it on the chin all over again, down four bucks on jpmorgan. Thats 4. 5 . Goldman is down 7, 4. 8 . Morgan stanley down 8 , serious drop there. Ashley you know, not since february of 2017 that the dow opened below 20,000, just to give some concept. Thats three years. Boeing down 18 . Very close, just above 100, 101. 52week low on boeing. Stuart who would ever have thought ashley down 23. Stuart literally ashley right at 100 now. Stuart right at 100. Literally four weeks ago, boeing was at 330. Now its 100 a share, right at 100. Boeing is a dow stock. Thats helping take the dow down off 1200 points as we speak. 100 on boeing. Keep those stocks flowing. I want to see as many as we can. Lets give you a sense of where we are with the stocks they own. Visa, mastercard, american express, all of them way, way down because stores are closing all over the country. Thats a suppression of purchasing power and that directly affects the credit card companies. Visa, 148. Shortly we will be able to show you how far down they have all come in the last four weeks. Im telling you, they have been chopped off at the knees. Amazon is down just 2 . Interesting. 2 down for amazon. Ashley keep an eye on the Energy Sector. Crude oil down at lows we havent seen in some 18 years. Stuart theres amazon since whenever, alltime high. Down 382 from its high. Thats 17 . Can we get the Energy Stocks up there, please . They will be decimated. No way around it. The price of oil at 23 a barrel. Ashley just up a little bit. Still down 10 . Stuart down 10 . Look at that. Valero energy is way, way down. [ speaking simultaneously ] 10 a share. Oil at 23, 24 a barrel. Ashley 24. 23 right now. Stuart shah, you say the price of oil is also destabilizing the overall market. Explain that. There are a lot of companies that banks have lent a lot of money to in the energy patch and these highly Leveraged Companies now are not able to make their debt service with oil at this price. As simple as that. What we are seeing is the knockon effect that will happen on regional banks that lent into the oil patch into the midwest, into the shale producers and frackers and thats a problem. Its going to work its way up to banks that actually lend to the regional banks because they all lend to each other, a lot of them in the fed funds market. We are seeing those restrictions and those lockups if you will in the fed funds market. Part of it is a funding problem for banks who lent to very Leveraged Companies. Stuart to d. R. Barton. D. R. , you have seen the sharp drop in the price of oil. Im looking at the sharp drop in the price of gasoline. Its all the way down to a National Average of 2. 21. There are 16 states where gas is under 2 a gallon and in oklahoma, the average is 1. 86. I think this is wonderful stuff but how do you enjoy this when you cant get out of your house and drive . Well, you know, its always that balance when we talk about oil prices. Companies that use oil as a feed stock, its good for them, all the big oil manufacturers, producers, not so good for them. Consumers, its good for them, as you just said, but i dont think that the consumer pop that we usually get from a gas drop is going to be able to overcome whats happening with retail, with not being able to get out. To one of shahs points, its not just the regional banks that have exposure to shale oil companies. Some of the biggest banks, jpmorgan, citi, have 5 of their total loan book that is exposed to shale debt and thats why we are seeing those down so big over the past week. Stuart im just going to report this political item. Fox news says Bernie Sanders is going to assess the future of his candidacy over the next several weeks because of his string of losses to joe biden. Im not reading any significance on the market into that. Not saying theres a market impact. But hes reassessing, hes going to assess the future of his candidacy over the next several weeks. Thats Bernie Sanders. Looks to me like joe bidens got the nomination but again, in this period of the virus, politics seems to be almost irrelevant to our daytoday lives. Back to the market. We are down 1200 points on the dow industrials. We stopped about that level. Ashley the u. S. Dollar incredibly strong right now against the british pound. The pound down to 1. 18, a 35year low against the u. S. Dollar. Stuart the Australian Dollar ashley 1. 70. It would cost you 1. 7 aussie dollars to buy a u. S. Dollar. Stuart the other way round, an aussie dollar is worth 59 u. S. Cents. Ashley 58 right now. Remarkable. Stuart that is an extraordinary thing. Art laffer, the extraordinary strength of the u. S. Dollar, i dont think the president likes that because it makes us highly uncompetitive in the world trade but we arent trading very much so does it matter that much . The strong dollar is a clear sign that everywhere else in the world likes the u. S. A lot better than they like their own economies and are trying to buy dollars to move into the u. S. I think thats really a good sign. I think a strong dollar is a sign that we have the strongest economy in the world because the Trump Administration did the right things for the last three years. Thats why we are doing better than these other places. Its just amazing how good this economy has weathered this storm that we are facing today. I think a strong dollars a sign of the u. S. Being in much better shape than anyone else because of the policies followed by this administration. Stuart art, we will take that and run with it, as a matter of fact. Right. D. R. , come in, please. I see the dow tends to bounce back above 20,000 whenever it dips below. It just did. I see the s p bouncing every time it goes below 2400. Maybe im grasping at straws but could those two levels, 20,000 on the dow, 2400 on the s p, bottoms, maybe . Well, the market is furiously searching for a nearterm bottom. Stuart, we are due for another necksnapping reversal to the upside. It may just be for a couple of days but those are key levels. When you talk about a whole number like 20,000, a lot of eyeballs are on that number so you have a sharp technical eye as i have seen being trained up over the last five years. Stuart you are getting wonky on me. You really are. We have abandoned the buzzer for the era of the virus but it will come back. Just watch out there, lad. Okay. Ashley boeing now under 100, 99. 72. Its beyond a threeyear low now. Stuart okay. Art laffer, boeing under 100 a share, down from 330 about five weeks ago. Could you make a case for emergency loans to boeing from the government . Of course. Thats exactly what the Federal Reserve has said it was going to do and it is exactly what they should do. In times of crisis, discount freely. Make loans at Loan Guarantees to these companies that are otherwise very solvent, very good companies, but they are having shortterm liquidity crises and you never want to see a liquidity crisis turn into a solvency crisis because then it causes the Great Recession and all of that stuff. The fed i think is perfectly positioned, as should the treasury be, and there are a few other Government Agencies to either do Loan Guarantees to these companies, hotels, cruise companies, airlines, boeing, to do that so that they dont lose their solvency by having fire sales of their assets. Thats the one thing you dont want to have happen. This goes all the way back to walter badgett in britain in the 19th century. Its exactly what the Central Banks should do. Stuart glad we straightened that out. We are back on the same track. The dow industrials down 1200 points. Whatever i say, we appear to have stabilized at that point. We get another leg down, its the kiss of death. Lefthand side of the screen, its all red. All of them. All the 30 stocks of the dow industrials, every single one of them is in the red. We are in the grip of another selloff, down 1170 for the dow. The 20,000 level, im not going to say its holding but its bouncing around the 20,000 level. I just saw, whats that one in the top lefthand corner . Ashley walmart. Stuart walmart is now it just turned to red. Okay. Ashley kiss of death. Stuart i shouldnt have said a word. Be quiet, please. Lets roll through different groups of stocks. Can i so tee the airlines this morning . Big tech all down across the board in significant percentage terms. Can you get me the airlines . Well done. American airlines is at 13 a share. United is at 26. Delta is at 27. All of them down 11 , 12 , 13 . Jetblue is down 9 . Southwest is down 7 . The Airlines Just absolutely decimated because they are all flying quarter full planes, if they are flying at all. Ashley exactly. Stuart they have very very heavy duty costs. They have to pay for the planes, insure the planes, personnel and pilots to employ. Vast costs, no revenue, down goes the stock. They are prime candidates for some kind of government assistance. Thats going to happen. Show me the rest of the casualty list. How about the cruise lines . Show me those, please. Show me uber and lyft. Keep going through them. I will follow you. Carnivals at 10 a share. Who would have thought that. 10. Royal caribbean, 24. Norwegian, 9 a share. Their problem as an industry is going to go on and on and on. No way round it. Here we go. Breaking news from President Trump. Heres the tweet just in. We will be by Mutual Consent temporarily closing our northern border with canada to nonessential traffic. Trade will not be affected. Details to follow. Okay. We will keep that in the back of mind there. Closing the northern border to nonessential traffic. That just in to us. No impact on the market. No direct effect that i can tell. Ashley no. Stuart as soon as you get these headlines, maybe you get the algos reacting. This time, we are stabilizing with the loss of 1,000 points. Ashley talk about the airlines and bailout of the airlines. I get gary kaltbaums note every morning which is always very entertaining and he says let me just say this about the airlines. This is gary kaltbaum. Maybe our other guests can comment. Just the following airlines spent 45 billion buying back their stock but now the industry is asking for 58 billion . Of course this is the same industry that charges us billions for luggage, billions for different seats while making our space on the plane smaller. Stuart not a popular industry by any means. Ashley no. Stuart gary kaltbaum, good man, great market watcher. Ashley just wanted to throw that out there. Stuart i think you should. What are you doing . Ashley yeah. Stuart they bought back their stock. Ashley delta, american, southwest spent 12 billion each buying back stock. Stuart now they want 50 billion worth of assistance. Ashley 58 billion. Stuart hard case to make. What have we got now . Tell me again. Casino stocks. Thats right. Thats what i want to see. What have you got on this, susan . Susan the likes of mgm and also wynn in closing down las vegas. You dont have the fountains that are very famous at bellagio. As you heard yesterday from the casino group, jim mirren in that group with President Trump. They are asking for assistance as well. If airlines are getting money, why shouldnt we get some money, we have cancellations in bookings, no one is going to vegas, no one is traveling. You can imagine a lot of hospitality and leisure groups are doing the same. Stuart i saw the guy from wynn, i saw him, he was on camera and he was saying look, we are going to support all of our employees, we are going to pay them in full plus the tips that they rely on for the next month. They are doing their best to support their own people. Thats wynn resorts. The stock susan not everyone is doing the same. You heard from marriotts ceo, he was also in the white house meeting and they are furloughing tens of thousands of employees. Thats basically suspended work and paychecks that will not get paid out. Not everyone is as lucky as those who work at wynn resort. Steve mnuchin says the jobless rate could hit 20 . Thats pretty much what the algos reacted to this morning if there wasnt this type of big assistance from the government. Stuart when you think about it, as these closure orders go in place closing stores, closing factories, closing meetings, travel, whathave you, there are very large numbers of people, i would say tens of millions of people, who will not be getting a paycheck in the immediate future. They are in dire straits. What are you saying . Susan i agree with you. Thats why you saw i guess the treasury secretary trying to sell this stimulus package saying we need to get 1,000 check into the pockets of a lot of americans. Back in 2008, 100 million households got a rebate check because of the dire straits of the economy. But just getting back to the markets, we i heard you talk about Goldman Sachs predicting a contraction, shrinkage of 5 in the economy in the Second Quarter of this year. They are still keeping their s p target at year end at 3200. Isnt that interesting . Are they expecting a vshaped recovery once we get through the worst of this in the First Six Months of this year . Stuart goldman says its going to be real bad economically in the Second Quarter but the market will bounce back, they are saying the s p goes to what was it . Susan 3200. They are still keeping that target on. However, they have said the bottom might be 2000 for the s p 500. We are still 20 off those levels. Stuart that would be quite a vshaped recovery if its 3200 on the s p by the end of the year. That would be remarkable. Lets move on. Ive got something on fed ex. Ashley yes. Suspending its 2020 profit outlook. No big surprise. A number of companies have done that. Fed ex in its earnings report, net income down 53 year over year. They did beat revenue estimates, however, but they are in a mode of cutting costs at fed ex. They have had to continue the integration of tnt, the big dutch Delivery Service which they bought. They are also incurring costs from sunday Home Delivery and lets not forget they lost amazon. Com as a customer. Lot of analysts calling fed ex a turnaround stock. They have a ways to go. Stuart 95 a share as we speak. Okay. The dow is down 1200. Susan, what do you have on tesla . Susan tesla, take a look at the stock. We are down 11 and we were actually down yesterday in an up market, when you saw that 1,000 point rally. The reason, oil prices are coming down, looking at the lowest for crowd in 18 years. Do you need an electric car . Also, freemont, their main car factory in the u. S. , has to shut down according to the Alameda County officials. That is going to hurt production, as you can imagine. Its the only place in america that builds the model 3, majority of model 3s around the world. Its also the only place they are building their new model y crossover car. So they have promised 500,000 deliveries this year. If they shut down freemont, that is a big deal for tesla. We are way off the highs, by the way. Stuart yes, it is. 383 on tesla as we speak. Down 47 today. Show me the fwrogrocers, grocer stores. They are still open all across the country. I have not heard of any closures. Ashley you look at kroger, which is actually slightly higher in this environment, up 1. 5 , they announced in a time when so many people are losing their jobs, kroger is hiring 2,000 people in response to the virus to keep up with the demand. Stuart thats good news. Kroger is doing well. Walmarts at 119. They have not suffered. Because people are shopping at walmart because they got stuff and its cheap. Kristina, you are following oil. Last i saw it was 24 a barrel. Kristina yeah. Right now we are seeing it across our screen flashing that oil has hit lows that we havent seen since 2002, down 10 today. We are talking about even just from january, down almost over 60 when it was at 63 a barrel. Look at that. 23. 97. A lot of analysts are weighing in. There was one analyst note, thats what i want to bring up, she believed saudi arabia, russia as well as uae and kuwait, none of them will step back from ramping up production. She used the words, i quote, what we are seeing here is essentially the atomic bomb equivalent in the oil market. Another major point, too, is we are seeing it trade below this key level of 26. There was another note saying that if the price continues to plunge towards 20 a barrel, that could wipe out much of the profitability of u. S. Domestic producers. Thats a level we are looking at. Its not doing well, down over 10 . Stuart they got to be in line for some cheap loans from the government. Keep them going. You dont want to abandon energy independence. Ashley not at all. Stuart got to get back the boeing. Ashley now back above 100, 101. It was the first time it went below 100 a share in seven years. Stuart seven years. My goodness. Ashley 18year low on crude oil. 35year low on the uk pound. Now we got its that kind of market right now. Susan whats the price tag on the boeing bailout . Arent they asking for 60 billion in order to get them through with the 737 max groundings and cancellations of the orders . Stuart thats a big number. Susan thats a big number. Ashley yeah. 60 billion. Stuart thats what they have asked for, right . Ashley yeah. Susan for one single company. In essence, wouldnt essentially the plane maker be a Government Entity at that point . Like General Motors was during 2008 when the government owned 60 of gm . Stuart yeah. Yeah. I mean, the government would be in control, essentially. They wouldnt own it completely but ashley kind of what the europeans do. They dont let any company collapse if they can help it. Therefore the state takes over. This is a form of that, for sure. Stuart susan, youre right, if the state lends them a ton of money, politics comes into play and the politicians will say well, there are Strings Attached to this. We will give you the money but you give us what. Thats it. Susan well, dont forget, the government lost close to 11 billion in their investment in gm. They initially gave them 50 billion and they sold the last of their stake in 2014 but at the end of it the taxpayer ended up with a loss of close to 10 billion to 11 billion. If boeing gets money, can you think of all the other companies that will be lining up for a handout and check as well . Stuart yes. In short, yes. I think so. Hold on, susan. Ive got with us jay timmons, National Association of manufacturers, the president thereof. Jay, are we looking at im not going to use the word bailout. Im going to use the word massive government assistance to the manufacturers of this country. We are looking at that, arent we . I think we are looking at uncharted territory, stuart. It is certainly a crisis economically. Manufacturers took responsibility very early on, several weeks ago, to make sure our facilities were safe, that the health of our workers was paramount. Now we are doing what we do best stuart are you asking for help, as a group, are the manufacturers of this country, you are asking for help. What form of help do you want . So we proposed a legislative agenda about ten days ago that was based on the tax code. We had some response from congress. We appreciate that Congress Worked very quickly in a bipartisan way. Its probably not the perfect solution but we are willing to work on the next phase and the phase after that. One thing, though, i would like to say, and that i think is very important for your listeners, who may be involved in state and local governments, manufacturers are clearly part of the solution. We are part of the supply chain. We are the suppliers of medical equipment, for vehicles, for first responders. You think about all the ways that manufacturers are part of the solution to this crisis that were in, and i worry that local governments, wellintentioned, are shutting down everything without designating manufacturing facilities as essential operations. We need to be very careful about how we do this. We have asked for cdc guidance to make sure that we have that we are taking care of our facilities appropriately and helping to flatten the curve. Stuart jay, thank you very much for joining us. Im sorry this is so short. Ive got a cavalcade of news coming at me and ive got to break it off. Jay timmons, thank you. Much obliged to you. I want to bring in kristin bentz, retail watcher here. Youve got a couple of stocks that you would like and that you would buy. Im going the stao start with p. Why should i buy peloton now . Well, remember, im looking at a six to ninemonth time horizon. I came out of fashion and thats how i see things. We are buying for the future. We are not buying for now. Stuart why peloton . Why peloton . Well, i have been bullish on this stock before corona and i will be bullish on it after corona. I think people are actually adopting this Healthy Lifestyle and the people that bought before corona are going to want to keep on with it. Its a very sticky brand. It is a very sticky equipment for lack of a better word. They are also offering their 90day free trial, their subscriptions for all of their classes. I think stuart okay. Ive got to move on fast here because its a fastmoving marketplace here. Nike. You like that . You would buy that and hold as well. Whats great about nike . They closed all their stores. Well, a lot of stores are closing but remember, im thinking about the future and when this market snaps back, which it does, that consumer demand is there, nike is best in breed, it is a multinational Global Company and 14 of their business comes out of china. That will rebound. Stuart okay. The other one is Louis Vuitton, obviously a luxury brand. They have been badly, badly beaten down. They are at 63 a share now. Why do you find them attractive as a bounceback candidate . All the more reason to buy Louis Vuitton right now while you can. 1400 stores are based in china. China went into corona first, they will be the first to come out and there will be a thirst for luxury. I call it revenge buying. You will see a lot of that coming out of china first. Then it is multinational. You have sephora, you have tiffany, liquor brands, hotel brands. It will bounce back. It will be like the great gatsby. Stuart kristin, thank you very much indeed. It will be like the the great gatsby. Long time since we heard that. Were down 900, volatility. Almost coming up on the 10 00 hour. Dr barton, sum up what weve seen in the last half hour, please. There is a little bit of a bright spot. Youre talking about could we find a floor. Looks like the markets dont want to down trigger that Circuit Breaker you talked about. I think this balance of the new fiscal stimulus ands going on. We heard good medical news out of Johns Hopkins has the market looking for near term bottom. That is what well keep an eye on. Stuart shah gilani, your turn, half an hour into the trading session, your analysis of today, please, shah gilani. The market is looking for a ledge to hang on to, stuart. It found one temporarily. The dow is at 20,000, 20,000, excuse me, and below that. Where the market went to 19882. Which was the low of the day yesterday. If the market comes down hold the levels. Well be okay for couple days. Maybe see a little bit after relief level. If we break the levels all bets are off, and were going lower. Stuart back to the new york exchange. Kristina, teledoc very much in the news. Kristina theyre very much in the news. This is telemedicine, meeting with doctors online to discuss symptoms. They will expand telemedicine for medicare. Because of that youre seeing one of the u. S. Leaders in the industry which would be teledoc climbing on the news. This is 123. We have not received any new stats in regards to number of patients visiting the website and setting up appointments. However just last week the company saw a 50 jump in the number of patient visits. We have to say this is e visit. So online. The company is seeing 15,000 visits requested each day. Im sure that number increased exponentially this week. We dont know the numbers this week. Well get them on friday. Shares are climbing higher. Dr. Siegel is with us. Im a complete outsider. How do i get a conference with a teledoctor . You told me hands or first to face. You learn more about a patient with the art of medicine and facetoface. There are a lot of nuances. People tell me a lot how they look but in a situation like this, where we want social stancing and we want to not have people with coronavirus type symptoms, cough, shortness of breath, fever, come to the office, we want to protect elderly, Health Care Workers get this very frequently, i think it is really good idea. I actually rethought the whole thing. I think there is a lot to accomplish here with telemedicine and visits. Teledoc is the leader in that field absolutely. Several other companies are involved. Medical centers as well. Stuart this is one of the things that could change on a permanent basis. When we come out of this thing, telemedicine really does work, i think a lot more people women be using it. Maybe the number of Office Visits will go down. On long term, maybe this is a breakthrough. What do you say . As usual on cuttingedge of this, look, stuart, rural areas you cant necessarily get in to see a doctor or Nurse Practitioner or physicians assistant. You may be stuck and sick, and want to reach out to someone. If youre used to do doing it online or telemedicine or videoconference, or video chat at nyu were using video chat. It could lead to a change in behavior. We have computers already set up while were doing the visit we can send in orders, we can order labs, order various tests that are needed. I think we come a long way with this. I think the time is ready for it. Stuart dr. Siegel, thank you very much indeed. Were a few seconds away from the top of the hour, that will be the 10 00 hour. I will reset exactly what is happening. Bang, 10 00 eastern time. We opened half hour ago. We immediately went down 1200 points on the dow industrials. We seem to held the 20,000 level. Dropped below it a couple times, moved up above it. 20100 as we speak. The dow traded below 20,000 for the First Time Since february of 2017. President trump tweeting in the last hour, that he is temporarily closing the northern border. See it on front there we will be Mutual Consent, that is conferred with canada, temporarily closing the northern border with canada for nonessential traffic. Trade will not be affected. That is important. We expect to get more on that and other subjects at 11 30 eastern this morning when the president is expected to join the White House Virus Task force briefing. That is at 11 30 this morning. That could be a market mover. Yesterday, when the president appeared with the treasury secretary and dr. Fauci and the Vice President , that moved the market. Maybe something similar today at 11 30 eastern time. Look at the price of oil. This is very, very important. It hit the lowest price since 2002. That is close to 18 years ago. We hit 22 a barrel. We bounced to 24. The price of gasoline now averages nationwide 2. 21 by the way. 2. 21 per gallon and there are 1states in america where you can buy a gallon of gas for less than 2 a gallon. Ashley who is going out to get it . Stuart doesnt count very much, does it . Cheap but if youre not driving. One of those things. Mitch rochelle, partner and leader. It is a market selloff, mitch. Do you see any signs of a bottom . Were bouncing around hopefully with could be a bottom. Although it is ugly when you bounce around. Markets are hanging on what happened to the press conference this morning. More details what physical stimulus could look like, who benefits, what is the timing. I think right now, pending that the market will bounce around in the ugly zone. Stuart do you approve of money thrown at economy in various loans, tax breaks, checks to consumers, do you approve of this effort on the part of the government . Certainly not unprecedented. The problem is it lacks specificity who it is really going to. Most americans going to get a paycheck through all of this perhaps dont need, sort of corporate welfare is ripe with political views on both sides. So i think the fact of the matter is, what we need is details. We need to figure out how quickly it happens. I think that, the speed and efficiency of getting somebody something i think is the most important factor right now. Stuart im inclined to say you would be very, you would be a brave soul to buy and you have left it too late to sell. What do you say . Whats interesting, stuart, if you look at how investors do when the market does hit a bottom year out, two years out, the numbers are pretty impressive. That is the most common question i get in the green room from all the people supporting this network, should i buy, should i buy, should i buy . I think there is a lot of that out there. The problem a lot of technical things are happening. Stuart what do you tell them . You and i, lots of people are like us. They know were in the market. They know we cover the market. They say shall i buy, shall i buy, shall i buy . What do you say . I always said, i always believe this if youre an investor for the long term, getting into the market at all different points. The hardest thing right now, if you think you need money, spoke to teacher retiring next year who is absolutely panicking, she is worried what will happen to the 401 k because i need it now . The question is if youre a long term investor, need to ride the assets, weather this storm, you get in at different points. Some days you win and some days you lose. Stuart seniors, those people who have, or are about to retire, theyre in the worst position of all right now. Because they probably seen their 401 k or ira diminish by maybe a quarter in a matter of weeks. And they may need that money now. If drawing down the money now, theyre selling stocks at a terribly low price. I think they are probably being hit the worst . I would agree with that. There is my 93yearold father who two months ago bought growth stocks, stuart. There is optimism for you. Stuart what does he say now . Got buyers remorse . Right now im more concerned with his health, making sure he as ample food supply than the stock portfolio. He got my opinion after he did it which wasnt necessarily a positive one. Stuart mitch, seriously now, do you see, when this is over, when this washes through our society, our economy and all the rest of it, when it is over, will we get a huge gain for the stock market that takes us back close, not necessarily above, but close to the highs that we saw in midfebruary . I think over time well get there. The problem that im wrestling with, a lot of folks are wrestling with, how long does the shutdown lasts or whether long term, not short term or intermediate term. Long term casualties will ripple through the economy. I worry about the retail industry. I worry about the domestic oil and gas industry. If big sectors struggle for a protracted period of time, it is difficult for the Broader Market to get there because there are big sectors will be, going to be struggling for quarter after quarter after quarter. Stuart mitch rochelle, we never seen anything like it. I hope i never see anything like it, thats a fact. At my age there are a lot of things i wont be seeing again. Thanks for joining us, mitch. That is gallows humor. Ashley youre laughing, yes, grimly. Stuart the virus is upon us. You have to smile occasionally. Speaking of which, kansas congressman Roger Marshal joins you now. This was big news to me, roger, kansas the whole state, youre closing schools for the rest of the school year. The impact of that is enormous. What do you say . Well, good morning, stuart. And thanks for keeping us all smiling. We appreciate your leadership and your comfort on these tough days like this. I want to emphasize were closing buildings but not ending school. Were setting up online services. So i think until we have a different direction with this virus it is a good step. Kids are super infecttores. They typically infect a lot more people than others do. So for the sake of our elderly, our seniors, for people with illnesses, i think it is a good move for now. Well see where we are in couple weeks. Were doing great things with School Lunches across the country. Secretary perdue, President Trump leading on that issue, making sure kids getting to the School Lunches, they can drive through to get brown bags. Stuart im looking for bright spots. When i hear an entire state closes schools, buildings, and maybe do it on line, the kids will be in with families, not locked down, restricted in terms of movement. I think impact of that on Everyday Americans which were feeling all cross the country is dire indeed. I cant walk away from that impact, dire, what do you say . Well, i think first of all, they can still go outside. But we dont want you toe go outside in crowded areas. You need to get in the backyard, shoot some hoops. Hit tballs, go fishing with family, go to isolated spots. We dont need kids gathered together, spreading the virus. Wer erring on the side of caution. President trump said practice overabundance of caution. I hope couple weeks now we can back off from that we have 17 cases in kansas. Only one mortality. Im pleasant were working as well as we are together. This is the time for communities to come together to solve this problem. Stuart congressman, youre absolutely right. We appreciate you being with us this morning. Much obliged. Thank you. Stuart judge napolitano is here, fox news senior judicial analyst. Okay. Mayor bill de blasio and governor andrew cuomo, governor of new york, mayor of new york city, they disagree over new york city will face a shelterinplace order. What are your thoughts on this . Well, first glance this appears to be a rejuvenation of the wellknown political feud between them, stuart, but its far more than that. This is a serious legal debate over who has the authority to do what and the law is decidedly on the governors side. The mayor simply does not have the ability to prevent people from walking into the streets but the governor does. Now whether he should under the constitution have that authority or not is a philosophical debate and there is arguments on both sides but the point is, he does have that authority and the mayor doesnt. Let me tell you what other authority he has. If he declares a state of emergency in the state of new york, he has the ability to remove temporarily all elected officials, municipal officials. So the marielly ought to be careful about tweaking the governor on this because he might find himself as former mayor if this really comes, push comes to shove. Stuart now putting the law and legalisms aside as i often like to do, judge, just consider this , they are think about a lockdown, a shelterinplace order for new york city. Now there is eight Million People here. There is a Million School age kids. Can you imagine trying to contain 8 million rambunctious new yorkers in their small apartments, with their kids and making it stick . That is legal problem. That is a policing problem, isnt it . Is a problem of inadequate, not inadequate, nonexistent government resources, youre quite correct. That is probably one of the reasons that the governor does not want this to happen. I think he has some feel for Civil Liberties and for the need of people to move about safely to get to work, to get to a store, to get to a pharmacy. People to work in those stores and work in those pharmacies and man gas stations but the logistics of trying to enforce that, would put such a strain on the Police Department of the city of new york, that other things that the police ought to be doing would go unmonitored, unchecked and unguarded and i dont know if the mayor has thought that through. He asked the state for resources which we know the state wouldnt give him because the state is not going to authorize this. Stuart i dont think im going too far to suggest that if you have a lockdown in new york city you face civil disorder, last word to you . Yes, you do, i think the mayor, the governor understands that. The mayor has an entirely different attitude. Look the governor is going to win this argument, just like he won the argument whether or not the city schools are going to be closed when he basically auld up the mayor, bill, close the schools, otherwise im going to do so tomorrow. Stuart he did, didnt he . Governor of new york has extraordinary authority under the new york constitution to move into a municipality and direct its governmental resources in times of crisis and andrew cuomo is apparently not hesitant to exercise that authority. Stuart okay. Judge, i know youre in the building, just in a very separate studio, so hang around for us, will you . I might need certainly will. You probably didnt hear my laugh when you said a few guests ago, there is lot of things i would like to do that i dont do at my age. Stuart youre killing me. Youre killing me. Love you, stuart. Stuart see you again soon. The production staff is laughing at that. I dont know why. I cant think why. I hear that laughter. Susan, i hope youre not laughing. Susan i am. Stuart netflix, a spike in subscribers . You must have heard of the term netflix and chill, right . Isnt that the same theme . Stuart say it again . Netflix and chill. Stuart netflix and chill . Susan have you heard of that . Stuart no. Susan you havent. I will plain later on. Net netnet flicks is, Credit Suisse did analysis, in a lot of early countries like south korea and asia and hong kong, downloads actually spiked as a result. So downloads currently up 100 in italy. 50 in spain. Since january the 1st, hong kong, downloads gone up twice, two times. Up 33 in south korea. So as a result, they say that will take place in those countries. Can you imagine the kind of popularity here in the u. S. As well. Jpmorgan yesterday says their picks right now are amazon and netflix. Netflix they say will actually increase the amount of subscribers worldwide to 27 million because of the absence of live supports programing. That they say will lead to more cordcutting. Google netflix and chill . Stuart well explain everything a little later. Ashley . Ashley Senate Majority leader Mitch Mcconnell saying the senate is to vote on the house coronavirus bill later today. Says he pass the proposal despite what he calls some real shortcomings. He says the house bill imposes new untested mandate on Small Businesses. He will not adjourn the senate until a far bolder coronavirus bill is passed. He says the nation needs historic injection of liquidity and access to credit. Those are latest headlines from Mitch Mcconnell. Stuart fullcourt press on part of the administration and congress. Ashley have to get it out there. Stuart get that money out there. Support and rescue operation. It sounds like wont leave d. C. Until they got it. Ashley they shouldnt. Stuart charlie kirk, turning point usa founder and cabot phillips, campus reform joins us, editorinchief i should say. Charlie, i will start with you. There is a lot of dissatisfaction in america what millenials are doing, off to the beach, spring break, carousing in bars, in crowds. You know, it is not funny actually, what do you say about all this. Look, were doing our part at turning point usa. We employ 120 millenials. Were telling them to work from home, socially distance yourself. Obey the administration guidelines. I know it is tough, it is difficult, tough for myself, right, travel over 340 days a year. There is a crisis happening right now in the country. Time for our generation to honor the generations that preceded us and slow down our life a little bit. I know that is a difficult conversation to have especially with the weather getting nicer, all the trips planned to wonderful places across the country. I for one, were trying to play our part, do our role. I want to say look be the administration has been dealt an impossible hand here. I think theyre doing a wonderful job. I know many people in the white house sleeping two or three hours a night, working their tail off. We need to talk about them too. They are dealing with something completely, totally unprecedented. Stuart hold on for a second, charlie. Cabot phillips, youve been talking with students with campus reform. What are students doing here . Theyre in a very difficult position, cabot. Yes. Students are scrambling, the situation evolved question quickly. I talked to many of them with leadership institutes campus reform t started with confusion, to university saying classes canceled to classes online. Commencement ceremonies are being canceled. We dont have students paying room and board, things like that. It is important to look why so many young people arent taking this serious. I think boy who cried wolf situation a lot of millenials, generation z told with everything it is national emergency. Told Climate Change will kill you imminently. President trump if he gets elected will kill you. Tax reform emergency, will kill you. When you have an actual emergency lot of young people are not taking it seriously, it should be, Everything Else has been an emergency and it didnt turn out that bad. I fear that is why people are not taking this seriously. You have only so much capital to warn people on things. Kind of shows you the danger of overplaying your hand,. Stuart well said. Dr. Siegel. What do you got to say . This is very important issue. It start with the young people feel invulnerable. They have not felt the hand of illness or hand of aging. Neither have you, stuart. Because they feel invulnerable. They hear the dire warnings not at a time in their life when they want to be restricted. I think the best way to handle this, i heard this advice from someone yesterday, not a psychiatrist, psychologically, we have to set the right example. If we panic, our kids, our teens, our young adults will panic. We have to have a serious sitdown with the young adults explain what were concerned about. It is invisible virus. Viruses are invisible, why it is theyre part of a larger Public Health community, why what they do impacts grandma down the street. That has to be something of discussion. The issue whether campuses should be closed or the gatherings shouldnt be had. That is completely issue. Im concerned when college kids not at home, by behavior not at school increase the risk. That is another part of this. Stuart i want to bring charlie kirk again into this. Charlie, have you seen any evidence, youngsters, millenials are prepared to buckle under, to accept personal responsibility here . Are they doing here, canceling spring break . Are they not going to bars . Are they buckling under . Some are, yes. Not enough. Again were trying to play our part. It is difficult. It is difficult to cancel programing. Were a campusbased organization. It is tough to all of sudden, over next couple months were now not going to have. Of anything happening on college campuses. I will say this though, a lot of the reason why young people are defying this, they have been given permission by their peers and permission by the professors think president of the United States is invalid president. This is rooted in the legitimatization presidency, that the president doesnt have Constitutional Authority to be in that office. I guarranty you if this was happening under president barack obama this generation would take it a lot differently. That is too bad. Because it has been many years of delegitimatizing donald trump as person, as a leader and as an administration. This is something should transcend political lines, young people shrugging it off, weve been told we dont have to listen to this, well live our life as we see fit. This is something different. The administration are doing the best job they can. Stuart i agree with that entirely, charlie, but are youngsters starting to respond and thinking differently about the president and the virus. They need to is the answer. Not enough are. I dont know what it will take or the breaking point is. We can act what we say. Im telling students and young people. You can be mobile. The most mobile generation in american history. Can be productive while see concluding yourself and distancing for a period of time. Stuart my heart goes out to youngsters whose College Experience are being rattled and changed. It shut be a wonderful time of life. At this moment to many it is not. Charlie, gave last word to cabot. You heard what i had to say. It is really unfortunate to destroy the College Experience for a million youngsters like this. Go. Yeah. Many of our campus correspondents i spoken to this week, i was first person in my family going to college. I was supposed to be graduating, walking this spring. I will not get a chance to walk the stage, get my diploma. That is heartbreaking. We could see a long term shift of education that lasts past the virus. A lot of people, millions of people are being introduced to the benefits of online working, online education. Young people are taking online classes. They might say, wait a second, im get being classes and professors and interacting with classmates. What am i paying 40,000 a year for . You could see a lot of people just now been introduced to online schooling after the virus is gone, saying i will stick with that. That is pretty nice. Gave me freedom. That could be a shift. We see as a result of this, not only working remotely in the workforce were seeing but also in education. Stuart charlie kirk, cabot phillips, both of you, i think well see some profound longterm changes from this virus when we have gotten past it on the other side. I think Online Learning may be coming to the fore, a great deal. Charlie, cabot, thanks. We appreciate it. Kristina at the New York Stock Exchange, winners, tell me more. Kristina winners in the Consumer Staples or the sector i should say. The sector is a loser but not losing as much as Everything Else across the board. I want to talk about big gainers, conagra, make duncan hines. Clorox is doing well because of cleaning products gary kaltbaum, he says clorox will be Expiration Date for the company. Once people start buying all the products. They will have them in their house, they will not need them for many months to come. This is something to keep in mind if youre playing market and buying a lot of companies. May not necessarily be a medium term hold. Proctor gamble, if we see that on the board, 121 also in the green, up almost 2 1 2 as well. Walmart, well bring that stock up. You can see gaining as well, four 1 2. Kroger. Walgreens, boots alliance, Consumer Staples. People are going to the stores. Theyre still staying open to provide Consumer Staples. Many, even General Mills, this morning, General Mills their plants are running at capacity. More people unfortunately panic hoard which we saw yesterday. Stores are restocking. You dont necessarily need to hoard all of the toilet paper imaginable in your basement. Back to you. Stuart i think it is a positive sign when you have walmarts of this world up 4 . People are out there. They are buying. Kristina economy, right . Walmart is good example of what people are shopping still, heading over there. I think the economy actually is contracting at this point. Kristina i dont mean it is reflection of economy. Right now, walmart is staple especially time of needs, when we saw hurricanes hit, walmart still remained open to provide the good to people. That is barometer. When things get bad, walmart closes. Stuart wait until things get good again. I dont know when that is going to be, i think well see a gigantic turn around in demand. The party will be on. Kristina well have to wait. Stuart we shall. I dont know how long we have to wait. Kristina, well be back to you shortly. Edward lawrence joins us on capitol hill. Senate Majority Leader Mitch Mcconnell says well pass the house bill and the senate will not adjourn until another bill from the senate. Have i got that right, edward . Reporter exactly. He goes further than that stu. He says they are going to pass the house bill today. The senate is going to schedule a vote later this afternoon on that vote today. It is going to pass. He says he will not adjourn the senate until they pass a greater package that include direct payments to americans in the United States. Also helping Small Businesses, specially with liquidity to make sure they stay open and dont go underas a result of the coronavirus. Were going to see the first stimulus bill. There is action going to be taken. After this vote in the senate, that bill goes to the president s desk but the senate will come right behind it with a greater package according to the Senate Majority leader Mitch Mcconnell they will vote on it. It will go to the house side, basically, flip, the reverse, daring the senate to pass what they wanted, what democrats wanted. Now republicans are saying we need to help businesses and American People directly. The senate going to pass to the house basically saying, challenging them, dont vote on this one. Well see a little gamesmanship here but also help to the economy. Stuart money is going to flow. It is going to happen. That is the way it is. Edward, thank you very much. Back to you shortly. Arizona senator, republican Martha Mcsally joins us now. Senator, youre a republican but you will have to be a big, big spender, arent you . Well this is important to protect workers across america and in arizona and Small Businesses. I like the words you used, called it rescue and support . Bailout is not stimulus this is unprecedented. People who live paycheck to paycheck like many i talked to this week, they need to be able to pay their bills. Well get them cash as fast as we can. Stuart it will be done, right . We are have to do it. We need to do it as swiftly as can can so the bureaucracy doesnt get in the way. People impacted, hourly workers, waitresses, Small Business owners. I talked to the flagstaff mayor. They have companies doing rafting trips in the grand canyon. They are zero customers right now. We need to help them, keep the lights on so that when this, we get past this, they can open up business again, they dont go bankrupt. Stuart senator, i would say tens of millions of americans woke up this morning knowing theyre probably going to miss a paycheck or two in the immediate future. Yes. Stuart your job i think, you know your job better than i do, but it is to get money somehow or another to support those people because they are desperate right now. I agree. I talked to many of them in arizona. We need to get them resources fast. For them to buy food, pay their rent, support their medical bills, that they have outside of the coronavirus. This is all hands on deck. This is all of society. I would also encourage philanthropist, others people who can. Im personally trying to see what i can do to help my neighbors. Stuart yeah. This can bring out the best of us. Not the worst of us, when we help each other. We have our part to do for the government. Lets all work together, faith based nonprofit, philanthropists support neighbors and get the checks out as quick as possible. Stuart there is personal element to this not just government action, not just that, it is oneonone. Yes. Stuart i saw a Young Volunteer where i live the other day, volunteering to go with a senior citizen, i will go do the Grocery Shopping for you. I will bring it back for you, dont worry. I think that is happening all over the country. It is amazing. It is inspiring. This is exactly what america is all about across every single community. We see what the needs are. We want vulnerable and seniors to stay home. We have to shopping for them. Leave it at the doorstep. Dont visit. You may be a carrier, you dont realize it without symptoms. Also if you can babysit for nurses and doctors who have kids at home, schools are closed. Whatever we can do in every Community Across america, this can again bring out best in us. We will get through this, we will be stronger. But what we do now is so critical in the next days. It is all of america approach. Stuart last one, if i may, youre a little concerned about millenials . They are getting bad publicity recently because they like to go to bars and spring break. Arizona is good destination. Are you a little worried . I used the white house to use the text message emergency system. Many are not watching cable news. When they understand, see what is happening in italy and also understand what they do now can flatten that curve, even if they get sick, they may be fine. It is about them saving their grandparents, the greatest generation, those who went to war to protect us from tyranny. They can now save lives by staying home. I think when we get that message directly to them. Theyre americans. Theyre patriotic. They will do the right thing. So we can save the vulnerable together. Stuart watch cable television, for heavens sake. All right. Senator, always a pleasure. Great to have you with us again. All right. Stuart apple, amazon, susan following both. What have you got . Susan we started off this morning at 8 00 a. M. With a Product Launch from apple with the Coronavirus Spread. This is surprising. They usually have glitzy launch events. They did it through a press release which is unusual from apple. They released two ipad pros. Launching a new macbook air. Two n. O. W. Products. The macbook air price lowered to 999. Double the storage on base model, 256 gigabytes. Apple underperforming a little bit. 225 or so. Apple, look at up arrow here. Amazon yesterday said they are hiring 100,000 extra workers because of increased demand they noted because of this coronavirus. People are spending online, also jpmorgan says, it is one of their top picks. Yesterday, more importantly theyre only accepting vital supplies into the warehouses that people need. Stuart susan, get back to you in a second. I have news on oil from ash . Ashley much smaller build, surprisingly than expected. Were up nearly two Million Barrels, 1. 95. We were looking for more than a three Million Dollar build. Not that we see any response from oil i dont think in this environment. Were down at 18year lows. Stuart this build youre talking about is more oil in storage . Ashley yes, we have more oil in storage but not as much as we thought we would have. Stuart i would have thought you get a lot more in storage because were not driving that much. Ashley exactly. Demand is not there. Stuart price of crude is down to 23 a barrel. Youre back to a level almost as low as it was in 2002 or way, way back there. This puts drillers in real trouble. You cannot make a profit selling oil at 23 a barrel. It is saudis and russians, coming after you. Coming after american frackers, trying to break you. That is what theyre trying to do. At the moment, theyre appear to be successful. I think this is a moment when the government should look closely at giving some very low interest or nointerest loans to drillers and frackers. We want to preserve at all costs our energy independence. Ashley this is a play that saudi arabia has made and russia for that matter. They want to wipe out frackers. Every time opec put in production cuts to put price of oil up, that goop was filled by u. S. Frackers t made a huge difference on the world stage. We became energy independent. Stuart benefit of course to us and most of america is, the price of gas down to 221 as a National Average. Ashley yeah. Stuart there are 16 states selling gasoline under two dollars a gallon, that is on average in 16 states. However, if the economy is flat on its back, were not driving as much, Economic Activity is severely depressed, we cant take advantage of the cheap gas now available. I think it is bad news for the electric car people. Ashley oh, yeah. Stuart two dollar a gallon gasoline . Natalie harf with us, trump 2020 Advisory Board member. Natalie, this personal thing. You battled cancer. You say that prepared you for the virus. Tell us your story, please. I did, stuart. Everyone is coming to grips with the fact that life is not guaranteed, it is a gift. When you have cancer you learn hard way you cant hoard time like toilet paper. You cant wake up and say, i might die, i might get more sick, yes, im still alive. We have so much to be trainingful for. Like the book said, these are the best of times and would ever the times. We have perspective. God is still god. Donald trump is still our president. He is fighting for us every day. Everyone knows what it is feel Like Fighting for your life is donald trump fighting for it too. That is how you look at it. Stuart it is, but i dont want to underestimate the seriousness of the situation. Obviously not and the impact on tens of millions of us. As lockdowns and shelter in place orders spread out and they are indeed spreading out all across the country, school closures, for example, that puts enormous pressure on individuals who are confined in their houses with their families. Now you can always look at the bright side, but i think we got trouble here coming down the pike . Right, we do. I mean everyone is realizing now all the things we did take for granted. Being able to go to work. Being able to go to the grocery store, to buy water or toilet paper, bare essentials and it is really important for everyone to learn what it is to be an entrepreneur because that is what everyone is going to have to do and im Glad Congress to working with the president to provide economic relief. The economic side, people will feel more than that than the fiscal side of getting it. Everybody feels like they have coronavirus because everyone is staying indoors. We have to be innovative. That is the american spirit. We figure out ways to come together to figure out a way through this. Stuart natalie, i dont want to pry, but i want to ask you, are you now well and, for how long were you incapacitated and what were your feelings at that time . Oh, yeah. I have dealt with it, stuart, the fears of dying but i do have faith in god. I know where im going. And so when you come to grips with that, you realize every day is a gift, you dont take it for granted but im still battling cancer. Nye members are best they have been. Im in range. The cancer is still there very much a reality for me. Im one of millions of people with preexisting conditions, we are at more risk than other people but we are used to fighting for our lives. Not that you, you know, not like you are, oh, yeah, i get to fight more my life again. You have to fight in order to beat things. Were going to keep fighting. Stuart do you wake up every morning with that on your mind . Because i suspect tens of millions of americans wake up every day now with the virus on their mind . Right. You do think about it. You think how it will impact you and the people that you love. It is definitely a reality you live w instead of figuring out to live without the pain we have to figure out to find life within the pain. That is what cancer teaches you. Things might not get better. You might still have cancer, you might still have pain. What are you going to do about it . You have to have faith, you have to have spirit, that is what the american spirit is about. Were praying for everyone around the world fighting the virus whether emotionally or physically, were all in this together. Of course people are panicking but we really dont need to because all of us are in the same boat together. Well get through this were all fighting the same war. Well win it. It is a martie of time but we will win this. Stuart natalie, your faith comes shining through, and i admire your spirit. Natalie harp, thank you for sharing that. We appreciate it. Thank you. Stuart doc siegel, youve been listening to this. Let me turn this around a little bit. I think there are tens of millions of americans under great personal pressure right now. I would expect to see some psychological problems at the end of this, how about you . No question about that. I think natalie outlined that. I have seen some much her writings on this, she is absolutely a hero and she is a good role model for people handling this without the fear, without that hysteria, without that it is going to happen to me next. She is talking about how she is fighting cancer which puts her at big increased risk here but also not assuming it will happen to her. Look at her smiling face. That is what people have to do. That is what Health Care Workers do on the front lines. Im not trying to compare them to natalie. She is in a whole another category of hero but Health Care Workers on front line are not thinking well be getting this virus, theyre thinking how will i help somebody. That is the es about of america. Reach out to help those around us, those who are most indeed. Stuart doctor, im sorry, i was laughing there, suddenly the camera adjusted and you filled the entire screen. I was off on the sidelines there. I was looked like i was two feet tall, a giant there. Ashley not saying a word. Stuart well fix that. That wasnt deliberate, stuart. They like my message. Stuart maybe so, maybe so. Doctor, hold on a second. I want to go back to the stocks exchanges, that would be New York Stock Exchange. Kristina, what do you have for me . Im sorry we were going to the exchange. That was my fault. I thought we got something there. Susan on tesla i think . Go ahead, what have you got . Susan we heard from President Trump tweeting that money is coming. Those in the Restaurant Industry desperately need it. All bars and restaurants are pretty much ordered closed across north america. They put a figure to the damage to coronavirus, trade group says, u. S. Restaurants take a hit of 225 billion in sales just in the next three months because of the coronavirus. They want a hand out too. If you give money to airlines, we need cash as well. The Restaurant Group is asking the white house for 145 billion in a Recovery Fund in block grants, loans and tax help as well. So you see lineup, there is a lot of line ups from different industry groups, if airlines get help, cruise lines, casinos, we need it too. Stuart that is breathtaking number. 225 billion worth of losses, lost business i expect if three months. Theyre looking for 145 billion in some sort of help, cash, block grants, governmentbacked loans or tax deferments what theyre looking for. Stuart what youre telling me is, lots of Different Industries going to washington looking for some kind of financial relief. If restaurants are looking for 140 billion, airlines looking for 50 billion, boeing ashley 60 billion adds up very quickly. Stuart pretty soon youre talking a trillion. I think that is where were going. Youre talking about trillions of dollars. Trillions plural getting out there. Interesting stuff. We do have the glitch fixed. We can go back to the exchange. Kristina, what is stitch fix . Kristina stitch fix is a online personal style guide that sends you clothes. You fill out a quiz. They send you a box of clothes to your house. The key it is an online retailer. The share price is climbing higher dramatically today at 15 right now. That is almost 11 higher. They did receive a price target increase from instinet to 18 a share. More people are expected to stay home. My producer got excited because she is getting her shipment of clothes tomorrow. You dont have to pay for the clothes. They come to you based off what your style quiz is. You pick something, if you like something, you buy it, send the rest back. None of the shipping cost anything. I have another company i want to talk about, tesla. Weve seen, this is pun, what a ride for tesla, the fact it went from 300 to 900 in span of nine months. Now trading at 324. There was increase and a note, bank of America Securities upgraded the stock to neutral from underperform. Theyre doing it cautiously. Theyre concerned about Free Cash Flow as well as future profitability for tesla. Theyre upgrading the price target to 500. Right now it is trading at 392. They do believe theyre the leader in electric vehicles but they are worried about credit when it comes to tesla. That is a risk factor for them. They have increased price target. You have stitch fix and tesla, thank you very much, kristina. Joining us on the phone, misty chaly. Executive director, coalition of Franchisee Associations. You represent restaurants, is that right, misty . Actually no. Tsa represents Franchisee Association regardless what industry. There are a Restaurant Associations have members like burger king and dunkin donuts. Stuart you represent, Different Industries which have a franchise operation going. Correct. Stuart okay, the big deal for you is what, paid leave . Correct. I think the right now the senate is finalizing legislation which would offer paid leave for employees sick and medical leave and, right now, the proposal places the burden on the franchisees to pay for the paid leave. The real issue here, franchisees are Small Business owners. They are not the large corporate mcdonalds corporation. They are, they are the franchisees paying for little leagues and supplying products and local fundraisers. Right now they are just being hammered with what is going on right now in the economy. Stuart misty, how much do you want . Im sorry . Stuart how much do you want . Well we would rather paid leave mandate be administered by the federal government. Stuart you want to make it permanent . Permanent. I think we need to get through this crisis first. Then see where we are, because right now we need to keep these businesses in business. Right now theyre down almost 80 in some areas. We need to keep these guys in business and their people employed. Stuart i take it youre hammering hard on doors of congress. You want your piece, right . Yes. Well, we want relief. Like you said restaurants are being forced to close. They need some sort of a offset to keep their businesses open. Stuart misty, im trying to give viewers, a sense where, how much money we will have to shell out there, put out into the economy. Weve dealt with airlines, boeing, the restaurant people, franchise people. Everybody wants their peers. I think we have to talk about trillions, trillions of dollars being put out there. You will not disagree with that, are you . No. But were not asking for that. Were asking for relief on things like payroll taxes. Not money coming to us. Having immediate money available to keep businesses open. Stuart there is a difference what youre talking about and a cash grant for example, to an airline, big difference . Correct. Stuart misty, thanks for joining us. It is interesting to find out who wants what, whether they are going to get it. Good stuff, misty, appreciate that. Back to susan with more on tesla. What else . Susan looks like headlines are saying they are seeing employees going into teslas free month factory. Despite the county order to comply with the lockdown. They tweeted this out yesterday, saying the free montes la factory is nonessential work. You heard from elon musk, he is still going to work. In an email, that was sent out last week he says, that he expects husband employees to con tin to go to work despite the coronavirus. Tesla stocks fell in afterhours because of this Alameda County sheriff tweet saying you have to shut down the factory because of the Coronavirus Spread but not the case. This is the primary factory that builds a model 3s and also model y crossover that you heard from musk saying will be available this year. Stuart musk would love to keep it open but im not sure he can. Susan, back to that. Were down 37 on tesla. Ashley quickly, i mentioned this earlier, there seems to be synchronized rush for dollars. There is liquidity crush on dollars, taking governments, Central Banks by surprise. Were seeing the pound at 35year low at 1. 17. Aussie dollar at 17year low at 5 cents. 58 u. S. Cents to buy an aussie dollar. Flight to safety. The dollar is in much demand right now. Stuart did i hear you say, wow, susan . Susan during the commodity boom in the last decade you almost had parity with Australian Dollar. The Canadian Dollar was worth more than u. S. Dollar when Commodity Prices were skyhigh. Trading half the dollar is a wow. Ashley can yesterday than dollar 69 cents. Stuart Canadian Dollar, formerly known as the loonie. Now down to 69 cents. Sorry, susan. Susan that is okay. Stuart if you take a foreign trip you would have a fabulous Exchange Rate but you cant take a foreign trip. Ashley much like you cant enjoy cheap gas. Stuart exactly. Look who is with us. Lenny curry, mayor of jacksonville, florida, your honor, thank you, youre the largest city in florida, largest population i think. You have very broad boundaries there. Are you close to even considering a lockdown, a kind of a shelter in place for the people of jacksonville . Well, couple of days ago i put out an executive order that limits all social gatherings to 50 people or less. That is restaurants, any other social spaces, people seem to be complying with that, taking it seriously. We are stuart shelter in place, in other words stay home, youre not close to that yet . Well, that could come. Here is what were doing. Im working closely with the Hospital Systems to ramp up testing. Have been in touch with President Trump and his team. Theyre sending a mobile unit in which will allow us to begin testing of 1000 people a day. The truth though, as we go through this is, recognizing the Economic Impact and pain on people. You know i talked to restaurant owners. Bartenders, Service Workers but my message is, stay home. Were going to have to go through this economic pain now so we can flatten the curve and get this over with as quickly as possible versus this going on for gosh knows how long. We saw what happened in italy. Stuart closing restaurants and bars in jacksonville . So the governor, the governor put in an executive order that said, whatever your occupancy rate is, cant be more than 50 . We went a step further. The governor said counties can put in their own restrictions. We said no more than 50 in any restaurant. Bars are have been closed down. There could come a point where everything is shut down permanently. At this point in time, it is limitations of 50. Encouraging people to stay home. Large businesses in town, many of them already started having people work from home. Were encouraging people to do that. Were encouraging landlords, commercial and residential not to evict right now. We have to row in the same direction, and be in this together. Stuart perhaps your biggest problem, this is shared lieutenant florida, is number ever elderly people in the population of people which you are the mayor. They are a highrisk group. I was going to ask you, is there any way you can give them special help . Im referring to a Supermarket Chain up here in the northeast which had special Opening Times for people over 65. They line up, go in at a special time, keep the distance from each other, trying to help them out. Are you doing anything to help them in jacksonville . Were certainly exploring every option. The biggest thing we can do to help the most at risk populations which are elderly, are people to take this seriously. Just because youre young, is what im telling our residents, this may not impact you, likely not hurt you, it is not time to think about yourself right now. It is time to think about everyone in this community, specifically those most likely to contract this and end up hospitalized. Stuart are you referring specifically to youngsters on the beaches of florida . The beaches. Restaurants, anywhere that theyre going, and so, the other thing is, in not think about themselves and ourselves, if the most at risk acquire this, and our hospitals fill up, and theyre stressed, then people with deep beats, people with cancer, with heart disease, are at risk for not being at risk to get their treatments. It is a domino effect. We got to all pull together. Stuart you could be forced into more stringent crack down, a more stringent stay in place, stay, shelter in place, stay at home, you would be forced to do that because youre testing a lot more people, you will probably have a lot more positive cases, you will need the hospital beds, you have to crack down, you are pushed in that direction, arent you . It could happen. Were monitoring this literally hour by hour. Im in regular contact with the heads of our local hospitals. Theyre prepared. Im asking them every day what their stress levels are and theyre preparing for the worst. Were nowhere close to that. We have 10 positives in our city. We know there is more than that that is because the testing hasnt been ramped up. Stuart look, your honor, youre in a very difficult position as are we all, we appreciate you coming on the program today, explaining what is going on, what youre going to do about it. Great stuff, we appreciate it. Lenny curry the mayor of jacksonville, florida. We appreciate it. Stuart checking the markets. We seem to be at that level most. We bounced straight back up again. S p, 2400 level has kind of held. Im not implying 20,000 is a bottom, im not suggesting that, but seems to be a point which the market is not prepared to go below. I suspect, a lot of people, a lot of investors are waiting for 11 30 this morning when we get the next virus briefing, the president may, im not sure of, he may appear at that 11 30 briefing. Well see. That could move the market at that time. Airlines, my goodness me, American Airlines is down to 12 a share. That is 19 drop. Delta is down 21 . Why . Because they have canceled most of their schedule. I think that is an accurate statement. And the planes that are flying are a quarter full if that. Ashley at most, yeah. Stuart at that. Discounting fares all over the place. Ashley doesnt make any difference. Stuart all these high costs, no revenue. That is why the stock is down. Look at jetblue, 7, 7. 96. Southwest at 35. Airlines are clobbered. That is the way it is. Cruise lines are clobbered, getting hit some more. Carnival, good lord, 9 a share. When this thing, when the virus started i think we were 35, 40, Something Like at that . Now it is 9 on carnival. 23 on royal caribbean. Ashley how long does it take once we get through the period, what will we recover . Stuart that is the big question. No one can say. Cruise lines seem to have particular Public Relations problem. Ashley yeah. Dont say stuart not going to say it. Ashley contain as lot of people crammed in close quarters in the middle of the ocean. So right now that is the last place you want to be. Stuart it is. That is a very difficult problem for these guys. Ashley right. Stuart hotels, how are they doing right now . They have been beaten down. I will show you the main ones. Marriott is down 22. Hilton is down 11 bucks. My i cant think down hyatt is down 10. Hotels decimated. Who is talking to me . Susan sorry, this is sue. Listening to white house meeting with some of the ceos. Hilton said occupancy rates are 10 to 15 worldwide. That is incredible. That is also very dangerous for a company like hilton that needs to fill those rooms in order to make money. Stuart that is another case, susan, of lots of costs, no revenue, equals massive loss. I think that is where we are. Look at that. Hotels, down 30 from marriott. Good lord. Lets bring in an economist, Brian Wesbury on the phone. These industries are clobbered, airlines, hotels, travel booking companies, do you see them coming back, brian . Eventually they will come back as long as they survive and you know, im not as worried necessarily about the Big Companies because the Federal Reserve has done a massive amount of liquidity adding, they have released banks from some regulations and they allowed them to go in to the commercial paper market. It just depend how long it lasts. So the real damage, i think, to the economy, is being done, you know, the shutdown of travel, the government imposed restrictions on restaurants, on bars, you know, why go to florida, right . Stuart it is government that is shutting down the economy. The government says, shut down and shut down we are. And it is because of the virus. Were paying an extraordinary price for this virus worldwide. Thats what is going on, brian. Exactly. You know, we have two choices. The way i look at it, stuart. If we rode this oink out, we would lose, 1 of the people, 2 of the people who got it . People die every year from the flu but what we have decided to do is fight this thing with everything we have, which is obliterating Economic Activity. Stuart thats true. We right now at 10 decline in gdp at an annualized rate in the Second Quarter and that is a huge hit. Unemployment is going to go up pretty dramatically, then were going to end up having to bail out Small Businesses. I would report rather have a bridge loan to survive. Longer we keep going, more damage to the economy. Stuart brian, i have to try to look on Positive Side of this. Look on the other side of the virus and its impact . Will we have gigantic explosion much Economic Growth and power when this thing goes through and ends . Absolutely we will. We came into this strong. Some people will say we were weak. That is absolutely not true. We added 270,000 jobs. December, january, february. Housing starts with strongest three months weve seen since 2007 . So that tells me the fundamentals are there to explode. Especially since we cut interest rates. Were, the Federal Reserve has gotten even easier . When we come out the other side, but the real strength depend on how long we keep the shutdown going . Stuart obviously. It may take it will take longer to recover because that means Small Business employees about 60 of all the people in the country and if they cannot survive for a twomonth shutdown, we will have a real problem hiring people back after its over. Stuart i am telling you, im sorry i have to move on im coming up to the top of the hour. You will be back in back soon. Thank you for joining us. Lets go to christina on the exchange, you have fedex news, what do you have reviewed weve seen a reversal its trading and positive territory of 2 and 96. 86. Analyst notes coming out, this one coming out from cowan, they have maintained a buy rating, what we are seeing is that they believe the strength in asia right now, the manufacturing is starting to resume in china, thats a good thing as well as the people cocooning at home, more people are buying goods and thats helping ecommerce as a whole and fedex is one to benefit, hence the reason why you saw the upgrade from Cowan Company pre 96. 33. Stuart its good to have you on the exchange looking for winners because you found a few and we like that. Coming up at the top of the hour, almost 11 00 oclock eastern time, im going to reset where we are, were on the air for two hours, the markets been open for 90 minutes and heres where we are. Down 1200 points on the dow industrials. It is 11 00 oclock eastern time, we are down 1200 on theyre down but i keep saying the 20000 level seems to be holding, i am not suggesting that the bottom but it is holding for now. In the 2400 level on the s p, where 2399, that also seems to be holding. That is the market action, in the last hour Mitch Mcconnell said he will vote on the house virus built today as the house built today in the senate he said will not adjourn with a bigger assistant package pack. He says we will get it. The White House Virus Task force will hold a briefing in a halfhour. We will show you that right he here, it is possible we will hear from President Trump at that briefing and we will probably move the market. Earlier this morning the president said hes closing the northern border by Mutual Consent and agreed with the canadians and that help is on the way for all of those that are out of work for the virus, the calvary is coming in on the way, here comes the money, who is with me for the final hour of the program, Elizabeth Macdonald is with us she is the host of evening edit enjoins us now. Elizabeth i know youre in the building at a different location keeping your distance. What is your analysis, i want you to comment on three things, the market action, we are down, the likely stimulus or the rescue operation which i think is coming down the pipe real fast in the briefing at 1130 per handle all three real fast. What we are seeing right now, the markets are teetering on the flat line, youre absolutely right, im not sure thats the bottom why, the markets are looking for the government to contain. Heres what we are learning right now, they would like to hear and Health Professionals as well, weve been on the phone across the state. They want to hear about ventilators, they know their 62000 ventilators in the u. S. , the army corps of engineers is mobilizing antinew york state, they are talking about 18000 ventilators they need in the unit or city area. They want that, also they want to hear about vaccines, theres a breakthrough news coming out of australia that australia is moving fast in a Clinical Trial involving 50 hospitals in australia involving the drug and have to tell you, the u. S. Pentagon is moving on working with the private sector on vaccines as well, china is what military is working on as a vaccine as well. Theres good news coming out on that front. Stuart i want to correct myself. Remdesivir is a drug and it might be useful in treating the virus. Lets get the drugs and the drug company very clear on this. Were down 1100 on the dow industrial and down significantly across the board, there are a few winners, mostly losers today. John lawn ski is with us, chief market economist. John, a few moments ago we had on our line and economist on the phone, Brian Westberry saying in the Second Quarter this year, that is april, may and june, this economy will contract at an annual rate of 10 , that is a gigantic a very severe recession. What is your number for the economist contracting in the Second Quarter . I would find it difficult to argue at this point in time. For the simple fact that we do not know how long were going to remain in this type of lockdown nationwide. If we get lucky and by the end of april people decide to return to work and shop and go about their lives, maybe we dont get the 10 reduction. But if this social distancing becomes extended throughout the Second Quarter then the result could be quite horrific it is anybodys guess right now. It does not look pretty. Stuart it depends how long the lockdown situation, the freeze of the economy it depends how long it will last. Lets try to be positive, look to the other side. I dont know when the other side comes but it will at some point, we will get to the other side. We will have a huge spending boom when we get to the other side . I think so, provided that this social distancing is locked out of the u. S. Economy does not push too many households and businesses to the edge financially. What we want to strive to do right right now is to have government programs, Federal Reserve programs in place that minimize any forthcoming increase in foreclosures, bankruptcies and default, that is very important. We do not want to have problems arise on the credit front that later paralyze the overall economy. Stuart i think there are tens of millions of people. Not literally, tens of millions of people that is the prospect of not getting a paycheck next week with week after that. Tens of millions of people. No way around it. Therefore, is it the right thing for the government to open up and pour money to that very, very large group of people . Weve had disagreement on the program this morning. Saying it will do no good, its not the way to go, youll damage the economy. I say the opposite, i think its a right thing to do, the right function of government what do you say . Not only the right thing to do in a moral sense but a right thing to do for the economy. You want to go ahead and contain economic damage and you want to give our economy a chance to accelerate rapidly once covid19 risk to recede. As far as what does it mean for the Financial Market and inflation, currently the expected annual rate of cpi inflation according to the treasury bond market, various securities there, guess what, two tenths of 1 , by no means can you make the argument that flooding the economy with money in grants poses and inflation risk, it probably does not. That is not what the treasury bond market. Thats exactly what the treasury bond market is telling me. No inflation risk and if an increase in the government budget deficit puts upward pressure on its restraint, you know what we do, we have the Federal Reserve by Treasury Bonds to alleviate such upward pressure and again, as i stated earlier, i doubt very much that this will lead to runaway inflation anytime soon. Stuart hold on a second, back elizabeth mcdonald. The moral question, is it the right thing for government to do but to push money to the tens of millions of americans who do not have a paycheck next week and the week after, morally is that the right thing to do, not economically morally. Liz it is morally the right thing to do. We saw Emergency Action and other crisis events during world war ii, you look at the auto sector alone, the auto industry, the hits there are big and it would be a hit to state and local tax revenue as well. Morally it is the right thing to do because people right now are worried about being able to pay their payroll and also about keeping people employed in Grocery Shopping as well. This right now, we are its like a wartime footing. Were in helicopter money time and its appropriate right now. Stuart the major anxiety. Especially for Small Business owners, how will they survive and how long does this go on, the longer, the greater the chances of never being able to reopen if they shut down. The point being made that loans are great but deferring not lasting. So perhaps what would work better as a grant to loans that you have to pay back even if its a very low interest, even no interest at all, it may not be enough for some of the Small Business owners to get back open again. Stuart john lonski is still with us. I know youre economist but i have to put your stock market had on. Were all looking for a bottom. Do you see any sign of a bottom for the stock market . I cannot state with confidence that i see a bottom anytime soon. I dont know how long the crisis will last. I dont know how much aid we will be getting from washington. But that being said, over the long term eventually covid19 disappears sufficiently at least and in response we probably will be looking at substantially higher equity prices, two or three years from now. Market right now i think longterm speaking, significantly undervalued and of course that opens the possibility for a much more richly priced stock market in the future. I think you put it right, were in a warlike situation and when we face a war in engaged in a war, quite often, the government is not shy about spending money in order to win the war and that should be exactly the case today. Stuart that is what we are about to do by the trillion. Back to the New York Stock Exchange, christina is looking out for huge loses or big winners. I think youre looking at bio america, which way is it going. Reporter its going green because im trying to give you bright spots, not just the little green, is civilly traded up 5. 80 but up 100 and why is that, the company has announced their shipping initial samples of their coven 19 rapid test two countries outside the United States. This test is different from what we have seen from other ones. Its a finger prick blood test where they get the results in ten minutes, not you you have to professionals prick your finger and then they decide if you have cobit are not in the next ten minutes or the results come in within ten minutes, the company has said that ministry of health and multiple companies have requested this, they said they are ready to ship the product out only if all of the shipment channels remain open. We know a lot of people closing borders and hopefully we will not see any stops to trade. All in with this tidbit, its very fascinating, and expects to sell the disposable singleuse devices for less than 10 a test. So this is biomerica up 144 . This is the bright spot for you. Stuart that is as bright as against, up 144 . We will absolutely take it, the only regret i did not see it coming. Dont live with regrets, right . We cannot win them all. Stuart come back soon with more winners. Susan, common pleas you are watching warlike. Record high for walmart. Look at it its serving 6 and an upgrade from credit sweep and now and outperform from neutral, it was as high as 6 higher and because coronavirus is going to can change Consumer Shopping habit, for five years and beyond. So people will shop more online for the groceries, go to walmart for their supplies, stockpile more and as a result walmart will be a happy recipient. By the way amazon and outperforming today, high rated higher by j. P. Morgan, one of the topics in the coronavirus bread because people are shopping online and buying goods. Stuart do you remember 20 minutes or 30 minutes ago we were joking about netflix and chill. I got a note from my daughter angela who works for fox nation by the way, ha ha, netflix and chill, you dont know what youre talking about dad. Susan the stock is higher because credits we did some analysis of downloads and the fact that they found 100 increase in italy, two times the amount in hong kong because of the coronavirus bread, your cortina nothing else to do but stay at home, they are saying its a 33 increase and that means the u. S. Increase in viewership as well in the u. S. Because of coronavirus. Stuart i dont know whether you asked me a question or not but next under netflix and chill seems to be netflix and chill out. Yeah. Stuart i got that. What part did you not understand. Im going to get my daughter onto the show. Hold on a second, this is the low of the day. This is no laughing matter, marriott staying its starting to follow what it expects to be tens of thousands of employees as it ramps up the hotel closings around the world, the price right now would be the lowest and over for years and also would be the biggest percentage loss ever for the stock going back to the first available date of 27 years ago, its been down five of the past six days, it lost 38 in the last three days, this is an example of what is happening to the hotel industry, obviously people are not the occupancy rates were remarkably low. Susan do you have something here . Susan i covered hotels in the past and this is the largest in the world because they bought starwood a few years ago they basically operate the hotels for the land lords who own the physical land that the hotels are built on and have thousands of employees around the world, you can imagine that this is going to hurt them the most stuart the dow is at the low of the date and we are firmly below the 20000 level, were at 19800 that is just about where we were when Donald J Trump was elected president of the United States. That is where we are now. I am sorry, can we just go did i just misread that, i do apologize, i misread, we are 19932. Below the 20000 mark. John brasa with us now, republican from wyoming. Mr. Senator, i am reading your note, and you say the whole country needs federal intervention. Do you mean a National Shelter home process . Stay in her own house, are you going not far. Absolutely not, were in a rescue operation for the economy, this coronavirus is affecting peoples lives and their livelihood, we will not reflect or reproduce by a result of the spirit we need to follow what the cdc has recommended, states are stepping up as well and theres more we can do certainly over the next 15 days but nothing in terms of a federal walked down. It would not suit wyoming what it to have shelter in place, you are very, very rural place, it does not make any sense to have the kind of order does it . No, i oppose not just for wyoming but everywhere certainly in wyoming were independent and selfreliant, right now we need to make sure that our medical personnel on the ground have what they need, the researchers have what they need an immediate relief as well for families who find themselves one day with a good job and next day with no work. Of course we will need to focus on recovery after that. Stuart do you think we have gone too far . Im not looking at recovery and rescue operation, im looking at the other side of the coin which is a crackdown so to speak in individual behavior and freedom of movement, have we gone too far, we are closing bars, restaurants, stores, schools, day care centers, we are shutting down in fact that going too far . I dont believe it is, were going very far in protecting Public Health and the cost is to the economy. So from a standpoint of fox business, to get back to a healthy economy and a robust economy we have to get the virus threat behind us. The quickest way we can do that is by taking the proper steps to day to prevent the spread of any greater degree. Stuart in the senate youre going to vote on the hospital today and then i believe you are getting ready for another rescue and support operation, maybe a trillion dollars there, that will be speedily gone through, is that accurate . That is absolutely accurate, today we will pass phase two, phase one was the money for the research and the medical care, phase two is dealing with people with the disease and phase three needs to be big and bold and bipartisan. It is important that we get this right but we need to be there for the American People to realize in a time of crisis like this, there is a role for government and the senators are here and basically at their assigned stations to make sure that we get this done before anybody leaves town. Stuart i believe treasury secretary mnuchin said its closing down parts of the economy will kill the virus. Pretty extreme stuff. That is what is happening to deal with the virus, the economy of our great country is being slowed and its a way we can most quickly kill the virus and get beyond it and onto the recovery for our nation and our future. Stuart he did say, this is justin, he is saying the u. S. Will deliver assistance, those people badly affected and there will be a delay in tax filing, the april 15 deadline, that will happen, you will get an extra. There. Any comment . I met with the secretary yesterday, we had the discussion on all of these topics, he knows he has a vital role to play in all of us have a vital role to play whether everybody in wyoming by slowing the disease spread, we have over one dozen cases, we have one nursing home where there are seven people involved. This is a disease, this virus can affect anyone, everywhere, all of us need to take the proper precautions you know im a doctor, cover when youre cough, if youre sick stay home, stay home, wash your hands frequently, all of those sorts of things will help in this battle that we find ourselves in today. Stuart thank you very much for joining us on a very important day. I appreciate it. John lonski, i want to bring you back into this. We appear treasury secretary mnuchin just said that we will kill the virus by shutting down, what was the expression, shutting down parts of the economy will kill the virus . Your opinion on that . That the cost we have to pay shortterm in order to minimize the lesson the longterm cost of coping 19. As we may have no choice. Its a case of biden the bullet for the longterm good. Stuart liz mcdonald, come back in, the mood of the country, i see the shutdown of business extending, icy closures of schools and businesses, bars and restaurants and i see a lot of people confined to their own home, what is it called, shelter in place. Tell me about the mood of america and how long we can stand this kind of thing. We are free living people and used to the great outdoors, movement and freedom and liberty. Do you think we can handle this . That is a question right now that we are hearing across the country, also in the Health Sector, they are saying will america think of this as a new normal and will they be able to live with this sheltering in place for that long. How long can they endure that. Governor cuomo said he thinks there will be a peak, 45 days from now that the cases will peak in new york state. So what does that mean, will they drop off after that, we know in the sars situation in 2003 there was a peak in the market bought them and then it tromped out. So all the debt severe and vaccines they are talking about now, from here to 45 days, we can see advancements there in terms of stopping the coronavirus, i have to say, were in a new age of frantic problem solving that we saw after world war ii and the depression were holding economies and sectors popped up. Now its about the Health Sector right now. We seem revolutionary action on the part of the government and the private sector in the Health Sector. I have to sam looking back at what happened in world war ii and we sell the defense industry, the car industry, come full on and maybe we will see that, maybe on the other side of this we will see a major advancement in health. Stuart you are right, its just very hard to predict one of the longterm consequences of this and what kind of changes we will all go through on the other side. Circuitry mnuchin says the economy will come rain back once we get past the virus, the question is when is that and when is the damage done. Stuart how much damage is done in the nearterm, how much do we roll back again. Can you put the banks back up there again. They caught my attention, we ran a list of the major banks, a few seconds ago and they were all down dramatically. J. P. Morgan is down nine bucks, and 9 for goldman is down 11 , Morgan Stanley is down 11 . John lonski when icy bank stocks falling out like that, i get really worried, should i be worried . Banks are much better capitalized today than they were back in 2008. That is a positive, banks are being hurt by the drop in interest rates, very low federal funds rate close to 0 . And also there has got to be a lot of worry regarding bank asset quality, and whether or not that loans and banks have made whether they will be paid on time, a lot of concern about that point in the whole theory is we get some sort of Loan Guarantee programs out there from the federal government including the Federal Reserve that would leave the sum of the worry. It is on two fronts, low interest rates, and acid quality you might add to this, whos gonna be borrowing money and take on new debt at this point in time. Stuart one second, Washington Post reported that the white house and Congressional Republicans would like to spend 2000 to Many Americans and provide 300 billion in Small Businesses as part of the stimulus plan. Stuart that is a lot of money. Too Many Americans, who will qualify, we dont know. Stuart 300 billion to Small Business. John lonski, 2000 to Many Americans, checks going out there and 300 billion for Small Business. That sounds like a major rescue package to me. You may have no choice, a lot of lower middle income americans are not getting paid right now, their employers cannot afford to pay them and if they were to do so there better be money coming in, they would go broke or bankrupt. So perhaps this is not about option, its the best option you can come up with at this point time. The important thing is, this money not go to people who are not in need of it. That is directed to those who are most adversely affected by the virus. Stuart im sure it will be. I believe we have you talk about the volatility right now. Were tracking how the trading action is going through out the day. We have to watch what is going on with etf, they make up on averaged a 25 of the trading, etf on a highvolume day, 40 of the trading, a lot of action starts happening in the first hour in the last hour. Theres a rush to the exit or in on a matter of etfs, they are acting smoothly right now in trading but etfs are a big player and whats happening in the market swings on the daily basis. Were at the beginning of this and we will be in it for another month and a half, if you listen to Health Officials and governors like Governor Cuomo in terms of when the peak and when it comes down. Were in a rough ride, this will be tough, the government needs to step up and say we will do more and supplying ventilators to hospitals and do more in the way of pushing out fasttrack testing and vaccine research, they want to see the u. S. Population, i think americans want to see it is being contained, they want to know when we can see the end of this in here the information out of the uk and we could be in this for 18 months out of london studies that are coming out now. Out of the uk. Is that a 2020 event . Will it happen sooner . We do not know. Stuart out, thank you very much. Joining us alaska senator. I have oil price right now at 22 a barrel. There is no doubt in my mind is being driven down by the saudis and the russians who are out to break people like you american Oil Producers. What can you do about that . Every country has a role to play in addressing the coronavirus pandemic from a health perspective, economic perspective. Saudi arabia has a particular Important Role to play, one of the largest producers in the world but currently the president of the g20 and a longtime ally of the United States, right now they are not stepping up to the role, they are actually playing a disruptive role in Energy Markets in a number of us in the u. S. Senate are focused on this, we sent a letter to the crown prince just yesterday, ive been in touch with secretary mnuchin, secretary pompeo this morning, secretary of energy, were delivering the same message that they need to play a much more responsible role in the global Energy Markets. We do not need a supply and demand at the same time, thats what we are seeing. Stuart they are winning at this moment, they declared war on our Oil Producers here, they are winning, i dont think you can make a profit anywhere in alaska with the price of oil at 22 a barrel. A bunch of us are meeting with the ambassador this afternoon, a bunch of u. S. Senators and we will send the message that the strong relationship that we have had for decades cannot be taken for granted. Now is the time for the saudis to stucco, show global readership in not just for support bu for the United States but a Global Economy that has seen rough days, they need to play the leadership role. Stuart what leverage do you have on the saudis. I think theres a lot of leverage. Like i said, we have been a longstanding ally and supporter of saudi arabia, i think with regard to security issues, we have always been there for the saudis and i think what they will see and what theyre seeing right now is a number of us, u. S. Senators who have strongly been supporters of them are starting to rethink that support if thats the way theyre reacting when we need responsible leadership from the saudis, as you mentioned these actions are not just turning the Global Economy, their hurting american citizens, their hurting my citizens and this is where it gets to be perfectly blunt and rather personal and ambassador is going to hear that in a respectful tone today from a number of u. S. Senators and i know for a fact they are hearing it across the Trump Administration from cabinet officials that i spoke to in the last 24 hours. Stuart play hardball, i think most americans would support you. The last thing we want to lose is Americas Energy dominance in Americas Energy independence. We will not and we are focused very much on that. Thank you for joining us. Very important, i appreciate it. At t. Ash more store closings, they will close more than 40 of companyowned Retail Stores nationwide but it also says it will ensure that all those retail employees get paid. Stuart closing 40 of the doors. Ash company Retail Stores. Stuart i wonder why, the lack of demand . Ash when youre told to stay home and only want to Grocery Stores and pharmacies and banks, Retail Stores for at t is not high on the list. Stuart that is demand stored for later because the phone. Stuart you will get it down the road. Elizabeth what do you have . The Energy Sector in the u. S. The Trump Administration is saying the Energy Department will move toward buying oil, so the strategic for petroleum has capacity for another 77 Million Barrels of oil to be put inside of it and at these rates, where the oil prices are heading, you are talking maybe one and a half billion dollars, 2 billion to buy the 77 milliot inside the reserve, it might be a good time to do it. Stuart i agree with you there. Thank you. Bottom of your screen were waiting for the task force briefing, its best to be 1130 now its 1131, these events are often delayed a little to figure out exactly what they want to say. We have a very precise way of talking about the virus in the governments response to it. You have to be very precise. Joining us now dan, come back in, read bush managing director, you are on our show frequently before the virus hit talking about apple, nobody could see the virus coming, nobody could predict what effect it would have but weve seen apple go from 330 240. Where will we go now . Obviously an unprecedented new tragic situation in terms of the pandemic but the next 3 six month are going to be dark days, i think bones get pushed into 2021, in our opinion you look on the other side of this and we scorched our model in the worst case, no one else besides an opportunity by the phone, right now youre looking at a stock that still is about 300 on the other side of this and i think worst case is 240 250, were in the range even when we use a stress test scenario, they look at this on the other side 12 18 months. As americas most valuable company probably the premier Technological Company in the world do see apple as a proxy for the virus . It says proxy and supply chain in asia but especially in demand, it comes down to the average consumer focused on their health, food and hand sanitizer, right now iphone is not high priority. I believe from a barometer in terms of economically speaking, right now stress test in a recessionary scenario, apple is a barometer but i still believe apple and microsoft continue to be what i view on the other side of this is why we continue to be bullish. Stuart we keep using that expression on the other side, ive use it myself all throughout the morning, what is the other side and when does the other side arrived . Do you have any tentative idea. None of us knows whats going to happen in the next ten minutes. Let alone in the next month. Thats why idea, take out 2020 numbers, its an anomaly, throw them away, look on the other side of 2021, thats what you do in terms of framework in terms of apple, on the other side, 12 18 months, that is the best way to view this. When you just go with the numbers, 350 million of 925 million iphones worldwide in a window upgrade opportunity, we see no one buys a phone that is not upgraded in 42 months in our numbers. Stuart always good stuff and great to hear from you. The idea that apple is a proxy is very interesting. That is what you look at when you judge the overall performance of stocks and the economy and the virus. Its a bellwether. Lauren is with us now, news on the bank. The worry now is the company is particular when you look at the company seen hit by the cheap price of oil, so the virus in the oil, companies is a for cash. No matter how you look at it and comparing this, they are saying the six biggest banks could be on the hook for 700 billion it as Companies Look to them to draw on the credit line. So this is an indication that the banks are not solving, it shows you the situation of the economy essentially shut down by the coronavirus and adding insult to injury is the cheap price of oil. Stuart we should not worry about the banks because the fed will come to the rescue of the banks. There certainly stepping in as much as they can to make sure there is liquidity out there. But there is a for cash, thats why were talking about 1000 2000 going to regular americans as well as bridge loans and assistance so they can make payroll. Because companies are looking for cash for liquidity. Stuart let me tell our viewers, i just want to tell our viewers that the Washington Post is reporting as of just a few minutes ago that we are considering america is considering checks to the value of 2000 too Many Americans. That is undefined, Many Americans, a lot of people, 300 billion operation to rescue Small Business. Something on that, before this Washington Post, we were talking about the thousand dollars, i threw that idea out to a lot of people, regular people said what is the thousand dollars going to do for me, an unprecedented situation like this, maybe it is more helping the Small Businesses, helping the businesses so they can make payroll so you have a job. Stuart the payments to individuals, whether 1000 or 2000, that takes care of the rent for a lot of people, and some insurance payments, but maybe these are regular checks. Until this thing is over. The government seems to be throwing anything added. What will we get out of this when we look at changes as a society, what is our reliance on government . Are we always going to be relying on government and how do we pay for this, we were indebted in the first base, this is all adding to the national debt, spinning forward, tax hikes are in the recovery phase, the next thing that will happen. Stuart do you have news on boeing . Boeing looking at them on the screen, boeing is down 17 , you tx is the biggest drop since 9 11 2001. If you add these stocks together, they responsible for about 240 250. On the dow jones. Stuart look at boeing what is this about a tweet with from bill ackman. The founder of persian capital, he said on twitter, mrr is to shut down the country for the next 30 days and close the borders. To all americans that you are putting us on an extended spring break out home with family. Keep only essential services open, the government pays wages until we reopen. What a lot of people are saying, this is going to be ugly and painful but lets make as short as possible. It is unprecedented in suggesting he is making that. Stuart were on a continuum, were moving further and further towards a much broader and harsher crackdown on our personal liberties and freedom and freedom of movement, you have children at home you know what its like. Its very hard. It is hard, the Text Messages among my mom friends, what you do, how do wework from home, and actually get work done. Im fortunate to be able to come into the office, and make sure our kids are learning to. We are going stir crazy. Im always getting a message, try this with your kids, something to make the time go by and to lessen their anxiety. Because something that we talk about a lot, hyo detrimental this coronavirus is to her health, the consequences of being worried about your job and being worried about your kids, that anxiety in it of itself could be worse than the virus for some people, some people will be unscathed by the coronavirus but the other aspect wont be in that causes Health Effects in itself. Stuart is a dreadful dark cloud that you wake up with every single morning. Liz , the leaders are saying dont shut down the market, it will only increase investor anxiety, certainly retirees rely on their Stock Holding right now to try to catch them out in order to live off of the holdings. It would ratchet up the anxiety and the market and be negative to investor sentiment. The New York Stock Exchange is not looking to shut down. I would say when it comes to liquidity in the market, before the Federal Reserve stepped in bringing back the 2008 crisis air facilities, the u. S. Bank at about 2. 3 trillion in liquidity in terms of available credit line ready to go in for companies that need to test them. The liquidity is being fixed by the Federal Reserve, the Banking Sector right now taking his butt in terms of bill ackman, i think a lot of people might say no, do not do that. Stuart i think a lot of people would say that but he does have some porters are insured. A very split decision. Christina on the exchange. What is this about traders are getting crushed because Governor Cuomo. New york Governor Cuomo talking right now and what hit the cake for a lot of the traders is the fact that Governor Cuomo said here in new york where were hit quite hard with the spread of the coronavirus, we need 37000 i you bet but we only have 3000. Liz just talked about the anxiety, the fear, that is further adding to the selloff, the other news coming from cuomo is that the United States is sending u. S. Comfort hospital ships to new york, this is a military ship that has 1000 bed capacities, it is a floating hospital, it is expected to come to new york given the spread and the fact that that hit a lot of the trading platforms, just those two headlines, you started to see more of a selloff and weve also fallen below the 20000point down thats added to the psychology of a lot of the traders trading down over 6 heading toward the 7 mark which would be the Circuit Breaker enacted and we would pause for 15 minutes, hopefully that will not happen again because it would be the fourth time in less than two weeks. Some of the news hitting the wire and adding to the selloff. Stuart right now were down 6. 1 , we dont shut the market in 15 minutes until were down 7 on the s p 500. The North Carolina Lieutenant Governor is with us. I think you have a very interesting plan here. We are all talking about the shutdown of schools, closure of schools, kansas as you may know how shut the schools for the rest of the school year but you have something called a Digital Learning plan in North Carolina, real fast tell us what it is. Yeah, weve been working on this for years for situations just like this to make sure all of her students across the state are prepared for the Digital Economy and it just so happens i had to do with connectivity to the schools in the classrooms as well as training for teachers as well as the content curriculum so we are set up really good in North Carolina right now for the education challenge we are facing in from an education standpoint, we will weather this pretty well. Stuart have you shut the schools in North Carolina . The schools are shut down. That was obviously a difficult decision but again we will learn a lot from this obviously but our position is really good and the students are moving along with the lesson plans and seniors being able to graduate and thats a good thing. I think the bigger challenge for us just like everybody else is the economy, people that are losing their jobs in middleage workers and thousands of people North Carolina are losing their jobs right now and what the unintended consequences of these economic levers being pulled are going to mean legacy for North Carolina thats been on the economic role. Stuart they close the restaurant in North Carolina and you do not like it. You dont think thats a good move. I dont think its a good move across the board. We have 100 counties in North Carolina and the viruses in 16 of those, so we have 84 counties that dont have the virus right now and were kind of using a blanket policy, i like what gavin newsom is doing in california where he has more of a bottomup approach and say where the real problem is. We have counties that have no viruses at all and no cases of virus, we should allow those economies pistol floors. Its one thing to say go to dining only in places where you need to do that, i agree with that i mean carry out only, there are places that this was devastating the economy because a lot of the small restaurants and small towns are going to have to shut down because they are not set up to do carry out only. Stuart there is a real push to make it a National Nationwide crackdown shut down i should say, we have dan ackman asking for the on a national basis. It is rolling along isnt it, there is more and more restrictions and more and more states, it seems like it is a most unstoppable at this point. It does seem that way, i hope innovation overregulation. I really want the good people of North Carolina, the innovators of the world to step up and solve the problem. So we dont have to pull all of the levers to one side of their equations and shut the entire economy down. I think the human factor on the coronavirus and the human factor on middleage workers losing their jobs and wondering if they can pay rent and pay for the car payment. This is very real to a lot of people on the ground. Right now all over the world even i hear North Carolina. Stuart it is a real thing that has arrived. It is imminent and vicious in many respects. Lieutenant governor of North Carolina. Thank you for joining us. All morning long we have looked at various industries which are in dire straits. Airline in dire straight and there is news on them. The triple administration reported lending to their carriers for the Stabilization Fund but would require carriers to meet service requirements. That is interesting. The other tidbits, the administration is also proposing 250 billion to taxpayers starting april 6 and another 250 billion starting may 18. Stuart the money flows. Which was you your point ear. Stuart the Washington Post says 2000 bucks too many american. Ash we will see how that breaks down, its a large sum of money, 250 billion for april and 250 billion for may. Stuart how about that. I want to repeat this, the Restaurant Association says, i dont know if it was association or group of restaurant people. We are going to lose in three months, 225 billion worth of people sitting down to eat. Ash this tidbit wants 150 billion in so much money being thrown. For long guarantees for other distressed sectors of the economy. I dont know how far that goes but its 150 billion. Stuart when i first came to this country i remember senator in the 1970s, stood up and said a billion here, billion there, pretty soon youre talking real money. Lets upgrade that a trillion here and a trillion there, then youre talking and enormous amount of money. We are talking trillions. Lets go back to susan, what do you have on the shutting down on the northern border. We have been talking about closing Stock Exchange of stock markets, what about border shutting. We have a little bit of a trickle and a decline in the stock market when you canadian Prime Minister speaking, he is talking about the border measures since we have the longest unprotected border between canada and the u. S. , between the border measures could last as long as they feel they should last, there is no deadline being put on this and they will happen very quickly, just again this is been signed and requires a trillion dollars of trade between mexico, u. S. And canada. They said trade will not be impacted but can you imagine if borders are closed, there might be some effect at some point. Stuart if trade is not going to be affected. Susan they say that for now but you can imagine there will be disruptions. Stuart extraordinary stuff. What is the Canadian Dollar down to now, 59 cents. That is extraordinary. Fiftyeight cents. Ash 58 cents. Stuart is anyway you can check the new zealand dollar, i know nobody cares but i do. Ash its on my chart. [laughter] stuart anybody who arrives in new zealand now from overseas, anybody you spent 14 days in quincy which is wrecked the new zealand tourist industry which is their secondbiggest industry. A tweet from the president , here we go. Thank you to our Great American businesses for going above and beyond to keep our most vulnerable citizens safe. I think the president is referring to some corporations which has said you are laid off but we will pay you. When the Gaming Company in las vegas, they have said that they are going to pay their employees their wages and tips until the end of april. So they are doing that. What we have here. Stuart were expecting the briefing being retired, is supposed to be 1130 and then it became 1145 and now are still waiting, its 1149 eastern time its a very important briefing, it happens daily, Vice President penns and doctor fouci will stand up and tell you the latest on developments on the virus and where its going. This morning, we have mesa the president. The podium. He has said he is going to hold a News Conference at some point today, he may be involved in this briefing that is about to happen. The way it starts, you will see it. A lot of talk inside the administration and certainly with the u. S. Surgeon general about following the model by south korea. South korea did not do widespread border to border lockdown instead it did heavy to heavyduty tracking and monitoring and testing rapid fire testing of its citizens. We know the bay area of san francisco, seven counties there are doing their own lockdown of the 7 Million People but this is different. With the Surgeon General and the Administration Sources are saying, were trained to do it south korea did in other words, dont do widespread country border to border lockdown or quarantine instead, track u. S. Citizens, make sure they are getting tested, see who needs help and a final point, u. S. Government now inactive talk of Facebook Google in a wide array of Tech Companies about broadspectrum, not personalized data, trying to see if people are doing social distancing, south korea did that, this is privacy issues, libertarians who will not be happy about that. South korea went deeper, they check peoples credit card payment to see where they were to make sure they were doing social distancing. Im not sure the u. S. Is ready for that but we do here they are trying to follow the south korea model. Stuart we will take it. Lets go to christina at the exchange. Tell me about American Airlines, i sell that stock price absolutely sink earlier today. Look at it now. Really you are 100 right, its over the course of the past few hours, and hit the lowest point ever for the company, American Airlines touched 11. 80, a little bit higher, it dropped more than 20 for the largest day and for the day, that would be the largest drop in American Airlines history since they have been publicly traded and its also hit a new alltime low, moodys placed a rating of American Airlines group on review for a downgrade. This company like many other airlines has been suffering quite a bit and we know u. S. Airlines are seeking over 50 billion in financial from the government, American Airlines is just another one to take a hit, hitting its low ever. The largest low ever and 11. 80, trending a little higher. Stuart john lonski, the airlines are asking for a 50 billiondollar rescue package, if they get it i presume the congress, the politicians will insist on some kind of quid pro quo, they want some degree of control over the airline, they will not just give them the money and get nothing back. With a rescue package, if we did it, dont we end up almost nationalizing the airlines, and can certainly control them . I would hope not, i would think that would be grossly irresponsible by congress, its as if congress is being blind to the fact that this is a natural calamity, this is nothing the airlines could have easily planned for. I would give them that rescue package and hopefully that helps Airlines Avoid bankruptcies or defaults and if that is the case, and works then fine. Where is the moral hazard. I dont really see it. Stuart i take your point very highly. Im going to change for a second, the market is threatened by the National Shutdown that we are seeing rollout. The economy is at a dead stop, that is hurting the market in the virus progresses. All of those factors of front and center today. There is another major story, that is the price of oil. Can you show me the latest . We got down to 22 a barrel just a few minutes ago and this is a real problem for the United States. Why . Because we produce 13 Million Barrels of oil a day. But you cannot make a profit on those 13 Million Barrels of oil when the price is 23 a barrel, in other words you will see a plunge in the amount of oil that we produce because you will lose money on every barrel that you produce and will see a lot of our drillers in fractures go out of business. That is the way it is, they will be looking for a significant help from the government. The other side of the coin is the price of gas, i have not told you this in the last hour, but the price of gas is way down, the National Average for gas is 2. 21 a gallon. There are 16 states where the price is 2 a gallon or less. In oklahoma, the average price per gallon at regular is a dollar 86. Ash the disbursement of money to rounds totaling 250 billion each would begin april 6 and ma. The amounts will be tiered based on income family size and the payments will be identical. So whatever you get in april you get the same amount and may. Stuart did you just tell me according to multiple reports, Bernie Sanders has suspended his campaign, can you confirm that . Suspended his campaign. They are reporting that, it is out there, Bernie Sanders suspends his campaign. If he had done that a month or two ago the market wouldve rallied because at that time there was a danger that Bernie Sanders was a socialist and still a threat. From the market would be horrified of that. Now he is suspending his campaign and nobody cares. Because quite frankly, the election appears to be on hiatus mode. Who is interested in the election at this point when the whole countries lockdown with this virus. We have a financial debacle on her hands, the dow barely holding the 20000 level. This is extraordinary stuff, were right in the middle. Susan do you have anything to add. Susan on the airlines, this might be a reason why were looking at airlines falling taking a leg down, it looks like theres a treasury memo that the dow jones is reporting and airlines are looking for 50 billiondollar bailout at least for airline loans coming from the exchange stabilization. But this loan of 50 billion will come with handcuffs and stipulation and means they will be limit on Airline Executive compensation, there will be a first continuation of Certain Service requirements and there has been a lot of loud rhetoric that if you will bailout any industry regardless of airlines, cruise lines or banks, you have to put stipulation and executive should not be benefiting stuart we should mention, susan, airlines, not all but many of them did put a lot of profits back into their own stock. Susan 96 of Free Cash Flow went into buying stock, providing better service, instead it went back to buyback buybacks. It lifted dollar amount of compensation for the ceos. Stuart that money has been lost. Those stocks were repurchased by companies themselves, it pushed the stock up. Now the stock. Neil im not going to say collapsed, that is not accurate. You have American Airlines all the way back to 12 a share. If they get help from the government, you can expect some handcuffs. You can expect some strings. That is the morality of this, isnt it susan . How can you, you lost all the money buying back your own stock and stocks collapsed. You cant expect the taxpayer to pony up this stuff without conditions. Susan after 2008 bank bailouts, no one went to jail, Bank Compensation was pretty much what it was before the financial crisis, extending beyond that, a average folks could not get their hourly wages going up 3 . This time around there has to be stipulations and handcuffs what they can do with the actual money being given, a lifeline in order to survive. Stuart thank you, susan. There are more tests being done. Therefore more positive tests, people do have. Ashley we knew that was coming. New york state, for example, has a spike. We now have 2300 cases in new york state. The governor of new york state andrew cuomo doesnt have the beds that will be required, drafting a hospital ship from the army. Say that again, please, justin. Okay. Sanders Communications Director that would be bernies Communications Director says, denies the report, he said absolutely false that Bernie Sanders is suspending his campaign. So there is a backwards and forwards on that. Granted bernie was expected to drop out because he did so badly yesterday and previously. Way behind in the delegate count. He was expected to drop out but his Communications Director says, this report that he is suspending his campaign that is absolutely false. Almost, my time is up. I want to thank for all the people that helped us on the show today, susan, lauren, john lonski, one and all. Thank you. Neil, its yours. Neil thank you very much. Were waiting for this Coronavirus Press briefing right now. The administration as you know, stuart, outlined it very cleanly and clearly here, upwards of trillion dollars in stimulus that could come in tranches. Wash upon post reported 2,000 in checks upwards to 100 million americans. If it holds true with the instant credit line checks made available to americans, roughly 1 3 of americans get these. Could be more, could be fewer. Simply no way of knowing it. Would be coupled with 300, 400 million worth of stimulus to the Small Businesses. The senate is looking to vote on the house bill later
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