Transcripts For FBC Varney Company 20240713

Notably russia, and surely it puts a crimp on the future of electric cars. Look at it this way. Why buy electric when a gallon of gas on average now costs 1. 81 and likely to fall much lower. In wisconsin, the average is all the way down to 1. 22. There are some places where its below 1. We will bring them to you. Its a big negative for the stock market. The dow industrials are going to open down 500 points. Thats roughly 2 . The s p down 1 . The nasdaq down 1. 93 . The oil crash really hurts stocks as well. Every energy stock is down. The airlines and the Car Companies, they cant cash in on cheap jet fuel and gas because people arent flying and theyre not driving. Where is the additional help for Small Business now that the first rescue package has run out of money . As of right now, it has not come through. Treasury secretary mnuchin negotiating with democrats over the weekend. Its supposed to be a better than 300 billion plan but its not here yet. Perhaps thats another reason for the stock markets monday morning decline. This is going to be a huge day. Can you believe, 11 a barrel oil . Varney company is about to begin. We are very close to a deal. We have a good chance of getting a deal. A lot of good discussions were had today. We have a good chance of getting the deal. We want the deal. We want to take care of our workers, we want to take care of our small companies. Stuart all right. That was the president on sunday saying we are close to a deal. Come in, keith fitzgerald. Look, does the market downturn which we are seeing in the futures, does that turn around if we get a deal announced today . I tell you, stuart, that is the logic. However, im not so sure we are going to get it. Oil has a very Significant Impact because Everybody Knows how closely tied it is to the balance of our economy. Stuart can you tell me why is it that this crash in the price of oil, and its a crash, 11 a barrel, down 30 odd percent, thats a crash, why does it spill over into stocks . It spills over into stocks because everything is correlated both on a consumption standpoint, you cant give oil away if nobodys driving. That then impacts deliveries, impacts transportation, impacts all kinds of other normal demand drivers that are there. Its also arbitraged against cash, meaning that if you buy oil here, you expect to use it there and it drives other value change in the economy, everything from production to assembly, those sorts of things. Finally, theres a financial impact. Every corporation has got what they call shortterm revolving debt. That revolving debt is based on how much cash they need on a daily basis. If the storage tanks are full, nobodys driving, they dont need it, they do need it, the calculus changes and that trickles all the way to the stocks. Stuart hold on for a second, keith. Oil crashing, stocks way down. Come in, ashley. Im told there are places where you can get gas for less than 1 a gallon. Tell me. Ashley yeah. Unbelievable, stu. 13 states. Arkansas, colorado, iowa, kansas, kentucky, michigan, mississippi, missouri, new york, oklahoma, ohio, virginia and wisconsin. Absolutely remarkable. 20 drop in gallons purchased in march. Last we looked towards april, compared to late february and early march, the amount of gasoline being purchased has fallen 50 to 70 . In other words, these are remarkably low prices. We are going all the way back 18 years. However, the reason is that no ones using it. Everyone is in lockdown, no one is filling up their vehicles. Therefore, we are running out of place to store the crude oil and no one is taking advantage of these incredibly low prices at the pump. Stuart just to be clear, that list of states that you read out at the top there, thats where theres at least one or two stations at 99 cents a gallon. 99 cents. Ashley 99 cents. Stuart just hold on to that thought. Thanks very much. Let me get back to this rescue deal for Small Businesses which has not come through as of right now. Edward lawrence is with us. The latest, please . Reporter yeah. You heard the president , donald trump, saying that democrats are trying to put in other things other than helping Small Businesses. They are negotiating with basically everything else. He said House Speaker nancy pelosi says she wants more money for hospitals, wants more money for protective equipment for medical workers, wants more money for front line workers along with the deal for the Payroll Protection Program. In addition, the House Speaker saying she wants 60 billion to be funneled only through Community Banks to reach the rural areas. Again, saying though they are very close, you heard President Donald Trump there, you played just a little bit earlier, saying they are close to a deal, hes hopeful for a deal today. The demand is still there. I talked with Business Owners in my community who say they applied for this loan under the program with the big banks and their loan is still in the verification process, while the program ran out of money. So theres extreme frustration with that. They would like to see this in order to keep going. On the other side of that, you have shake shack, who some say are not a Small Business, got 10 million in the loan program but from the criticism, they say they will return that money. Again, you are hearing stories like this on both sides. The demand is still there and very close to a deal. Hopefully they can announce today. Well have to see. Stuart on that note, harvard, theyve got a 41 billion endowment. They got some money from this bailout of Small Business and i believe they, too, are giving it back. So the discrepancy reporter 9 million. Stuart 9 million. Reporter harvard got 9 million. Thats money that could have gone to Small Businesses. Those Small Businesses see this and literally are getting very angry. I talked to two Small Business owners in my community and veins were literally popping out of their head saying they need this for their 20 employees, why does harvard or shake shack need this for their hundreds of employees. Stuart thanks, edward. Back to the financial markets. We still have a crash in oil. Its 11. 14 a barrel right now, down 38 . 39 . Weve got the stock market pointing lower at the opening bell. Keith fitz, coming back with us. Youre watching four stocks, starbucks, apple, gilead sciences, microsoft. Those are actually winners. They are down today but those are winners, correct . Well, they are. It depends of course on your time perspective but im looking to recommend to add to all four of those companies because theyve got a lot more going on beyond the virus so a day like this, even a week where we have some significant downward pressure, regardless of cause, the good always get better. I hope to buy things far cheaper this week. Stuart gilead got a couple downgrades today, i believe. You still hot on gilead at 82 . Oh, yeah. That doesnt even faze me. Remember how that process works. The downgrades off wall street are like betting on a horse race after you know the result. Im looking beyond that. Im looking at drugs, for example, theyve got a blockbuster hiv drug, they have a Rheumatoid Arthritis drug, so again, theres a narrative thats changing beyond the future. My job is to look into that crystal ball and i think these four companies great choices right now. Stuart you keep peering away into that chrrystal ball for us. Thanks very much. Next, this is a huge week for earnings. Lots of Big Companies report this week. Today its ibm after the bell, that is. Tomorrow we will get profits from netflix, thats the big one, and cocacola, too. Wednesday, at t, delta airlines, dominoes on thursday. They are big in this virus event. And we finish out the week with verizon and american airlines. Susan, come in, please. The biggest of the big there is netflix. It could be a huge week. Susan yeah. Plus by the way, the stock is up 40 from midmarch. Talk about explosive moves in the stock price. People of course watch netflix and the main catalyst for the stock move are probably how many subscribers in the first month of this year. Netflix has guided for maybe seven million new subscribers in the first three months of the year. This is coming off a tough compare from last year. Dont forget the first three months of 2019 was when people scrambled to get their Netflix Subscription before the price increased. They are comparing to nine million from last year. Still, given that people are stuck at home, the guidance for the next quarter will be very important. What will people sign up for march to june quarter. Anticipation is we will get above the seven million mark. Thats usually what moves the stock. We are expecting a really ugly earnings season. According to earnings estimates and averages, we are looking for earnings and profits to be down 11 in the first three months of this year, 21 in the next quarter, in the Second Quarter of this year, and overall down 9 for the entire year. So this is pretty much priced in, i think its individual names and stories that all count. Stu . Stuart im watching netflix. Im literally watching netflix. Im watching the stock as well. That company, theyve got some good new stuff. Susan they sign up someone like you as a new subscriber, what does that mean for their future, right . Stuart that is incredible. Absolutely incredible. Im afraid we have to go back to the grim reality of the markets this morning. Weve got the price of oil bottom right, its crashing. Futures for stocks show declines across the board. 2 down for the dow, 1 down for the nasdaq, nearly 2 down for the s p. On the program later, top chef, top guy, Tom Colicchio, is warning that one in five independent restaurants will not reopen without a lot more government assistance. That is extreme. One in five actually he says only one in five will open. How about that. Hes on the show this morning, 11 30 eastern time. Look at this. Another russian fighter jet buzzing a u. S. Spy plane over the mediterranean. General jack keane is with us. Whats the significance of this and whats the new relationship with china . Hes on the show. First, protests breaking out across the country. They are calling for states to end virus lockdowns and restart local economies pronto. More Varney Company after this. Lets be honest. Quitting smoking is hard. Like, quitting every monday hard. Quitting feels so big. So try making it smaller, and youll be surprised at how easily starting small can lead to something big. Start stopping with nicorette. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Stuart lets talk hydroxy chloroquine. For that we need news on novartis. What have you got . Ashley the swiss drug maker has been given the go ahead by the fda to begin trials on im going to call it hcq. It is a malaria drug, as we know, but so far there is no scientific proof that it actually works on covid19. There are currently no approved covid19 medicines so novartis plans to recruit 440 patients across the u. S. , late stage trials to take place within weeks, and they say they will post those results as soon as possible. But hcq, a malaria drug, but no scientific proof it actually works yet. Stu . Stuart got to find that out. Okay. Look at this, viewers. Bottom righthand corner of the screen, the price of oil has dropped to 10 a barrel. How about that. What youre looking at, lefthand side of the screen, is a live look at annapolis, maryland. Protests expected to start very soon. Remember, this is a protest of people in their cars who will be circling and making a lot of noise, not so much people on the street. They are going to be protesting against social distancing restrictions. There are more of these protests planned nationwide, reopen the economy, that is the demand. Lauren, what do you have on that . Lauren protests today as well in pennsylvania and in buffalo, new york. We saw over the weekend at least ten states with protests saying look, 22 Million People are out of work, let us reopen our economies, Holding Signs that say shut down the shutdown. The issue is, we saw this with counterprotesters in colorado over the weekend, the Health Care Workers stood as the line of cars were driving on the street, they stood at the red lights blocking the cars, sending the message that its a balance that you have to strike right now. The governors need to look at the situation, they need to get people back to work, but they also fear returning to work too early and limiting the social distancing will cause a second wave and that could be worse. We are seeing protests and we are, believe it or not, seeing counterprotests. But thats the protest you are looking at yesterday with some counterprotesters in colorado. Stuart looks like the country is divided on this. Susan, i think there is a new poll which says exactly that. We are divided. Susan yeah, we are divided at this point. I think its 50 50 as to whether or not to reopen the economy. We know we are suffering right now, more than 22 million have filed for jobless claims. But despite that, despite the fact we have seen a spike in jobless claims, you know the markets are just 11 to 15 away from record highs once again, something that has surprised the u. S. President over the weekend as well, if you heard in some of the task force briefings. We have come up some 30 from those lows that we saw at the end of march. So yes, i think we are divided but most of america knows this country was built to be open and built to be working. Stuart that is true. Susan, thanks very much. Come in, dr. Marc siegel. Lets get the medical side of this. Look, the country is divided on reopening and how to reopen and when. Theres a political divide there as well. What about the medical community . Is there a division there . Well, there is a division there, because some of the medical community, by the way, good morning, some of the medical communitys saying what about all the Collateral Damage of being closed, the amount of depression we will see, the amount of suicide, the amount of other medical problems that get worse when you are under stress or cant get to your usual doctors or supply line. Theres also a geographic divide thats relevant medically. In the northeast we are seeing most of the cases in cities. On the west coast, we are seeing in seattle, san francisco, los angeles. But did you know between illinois and the west coast, theres almost no cases and those cases are confined just to cities. So theres vast tracks of rural areas that are pretty much unaffected by covid19. The other point i want to make is as we expand testing, we need to expand testing dramatically, we will know more and more who has this in advance of when they get it. South korea today has people sitting in cafes. Why . Because they have been doing massive testing. We are going in that direction, as the president pointed out, we have done over 4 million tests now. I think we need over 20 million tests. We need way more testing. Its got to be rapid testing. Stuart doctor, spring is coming and the summer is definitely coming. Its going to get warmer. Is there any evidence that the virus is killed by heat . I think there is. Now, talk about misinformation, stuart. Theres a study in france, its not published yet, no doctors have looked at it yet, and its claiming that covid19 is resistant to heat, that heat cant kill it. Meanwhile, it uses way more virus in this study than we would ever see, you and i would ever see, and it compares it to the sars virus in 2003 and says its similar but heat killed that virus. And the department of Homeland Security says heat, ultraviolet light, and humidity all kill this virus easily and so that implies, as dr. Fauci has told me and dr. Redfield of cdc has told me, this is likely to have a seasonal component, this virus. Thats good news for us and for the economy, because if we start to see the cases drop precipitously as we get into warmer months, that will be another clue to reopen the economy. Then we have to watch australia and the Southern Hemisphere because after all, they are entering their fall right now and they are not seeing a surge of cases in australia right now. The curve is very flat there. We monitor australia the way we do for flu and other respiratory viruses to see how they do in their fall to predict what we are going to see here in september. Right now, all signs are that this Virus Outbreak and pandemic is decreasing. Stuart dr. Marc siegel, thank you very much. We appreciate that. Thanks. Look at amazon. In a down day, they are up 12 bucks. By the way, they are deploying thermal cameras inside their warehouses to scan for high temperatures amongst the work force on the job. Amazon is up 11 bucks. 2300 a share. Microsoft, they are launching a plasmabot to encourage people who recovered from the virus to donate their plasma as a possible treatment. Check united airlines. Expects to report a pretax loss of around 2. 1 billion for the First Quarter of the year. They are down 5 this morning. Wynns ceo, the gaming company, hes calling for the Las Vegas Strip to reopen mid to late may. Its not helping the stocks. They are all down. Overall, we have a crash in the price of oil. Look at that, right hand bottom of the screen, 10. 98 is the price. Weve got a sharp drop, 21year low, by the way, thats the price of crude oil, a 21year low. The market is going to open lower all across the board. We will take you to wall street after this. For many of our members, being prepared. Wont be a new thing. And it wont be their First Experience with social distancing. Overcoming challenges is what defines the military community. Usaa has been standing with them, for nearly a hundred years. And well be here to serve for a hundred more. Stuart thank you, front line workers. The job youre doing is terrific and thats a fact. We like to bring you news of whos calling for going back to work and when. Susan, tell me about wynns ceo in las vegas. Susan thats right. Matt maddox releasing a 23page plan late sunday evening call for the reopening of the Las Vegas Strip. Hopefully in mid to late may. Because nevada hasnt suffered as much as other states. For instance, they have 3700 cases, of the 700,000 cases of coronavirus across the state. He says we can do this with health precautions, reopening the vegas strip, including thermal cameras, social distancing and the like. He says we should start reopening because nevadas economy has been hammered but we are looking at a flattening in the curve right now. But it has been costly for wynn in particular. Approximately 3 million they are losing each and every day, 180 million for the past two months and the stock is down close to 45 since the start of this year. Wynn says given that we have this phased reopening of states that can, the Las Vegas Strip should be one of the first. Stuart it seems to me testing is the allimportant item here. Youve got to be able to test whos got it, whos got a high temperature, who doesnt have it. That makes reopening a lot easier, doesnt it . Susan absolutely. Wearing face masks, also testing maybe a facility nearby for those that actually work at the casinos and dealers will have to wear gloves and masks as a precaution in the future until we get a vaccine. Stuart we are looking towards the opening of wall street. We know we will open on the downside. Futures are sharply lower. What intrigues me and everybody else on wall street is this Extraordinary Development in the price of oil. Bottom righthand corner of your screen, we will keep it right there. Keep on it the price of oil, because its so important. The bottom line is oil has crashed. It crashed today. Its all the way down to now 11. 51 a barrel. At one time it was 10 and change. That has a profound effect on this huge Energy Industry in the United States. And all the way round the world. It is having a ruboff effect on the stock market as well. If youve got the Energy Industry crashing, you can expect fallout in the rest of the market. Whats it going to do to the car makers . The car makers are facing a challenge. They put a lot of money into electric vehicles down the road and now we find that oil and gas, more to the point, gas is dirtcheap. They are practically giving it away. Weve got a dozen states where you can buy a gallon of gas for 99 cents. That is a crash and that has an impact. Here we go. We are off and running this monday morning. Check out the dow 30. We were waiting for them all to open. Suddenly you will see a siege of red, i think, on the lefthand side of the screen. Not quite there yet but i can tell you the dow is down 2 , roughly 2 . Thats 470 points. Thats a loss, yeah, there you go, 2 down. How about the s p. I think the loss is somewhat equivalent, down 1. 5 there. The nasdaq doing a bit better. Its down, 1. 09 . A mere. In todays by todays standards, that is a mere 1 drop. Given the volatility we have seen, that aint so bad. We are down to 11. 48 on oil. Now, there you have it. Down 6. 82 a barrel. Long time since i saw that. Big oil stocks, bp, chevron, exxon, Conoco Phillips and chesapeake all way, way down. Exxon at 40 a share. Heres the refiners. You can read it for yourself. All down massively, huge declines there. This is true all across the oil industry. Big oil, drillers, frackers, you name it, theyre down. Heres the airlines. All of them on the downside. They would like to take advantage of cheap jet fuel but nobodys flying. So we have southwest, jetblue, american, delta, united all the way down the line reporting well, three of them report this week but they are all down in price right now. Boeing, they start production again at some of their plants today. Not helping the stock. Its down 4 . Amazon. We will talk about them in a moment. Clearly winner out of this virus situation, up another 20 bucks this morning. Walmart, another big winner in the virus season so to speak. Still pretty close to its alltime high. Netflix, the streaming winner. Thats up 16 bucks now. 439 is the price. Lets go back to susan. Im interested in companies that are getting more into the cloud and alibaba is doing that. Tell me what they are doing. Susan alibaba is one of the Largest Companies in china and arguably globally if you take a look at the statistics. They are trailing behind amazon and microsoft and google when it comes to Cloud Computing. Number four in the world by market share. As a result of the quarantine for the coronavirus, they have noticed theres going to be a big play in the Digital Economy. That means people are staying home, watching netflix, streaming, doing a lot of banking online and also working from home. As a result, they are now investing some 28 billion into Cloud Computing over the next three years. They are focusing on infrastructure and trying to challenge the likes of amazon and microsoft globally. I think that kind of makes sense given that coronavirus has really changed the way we operate and the Digital Economy and Cloud Computing and not having physical servers, thats the wave of the future. Stuart no question, the virus is a huge boost for the cloud. If alibaba is getting more into it, up goes the stock. 211 is the price. How about disney . I believe, lauren, they have some cost saving measures . Lauren yes, the Financial Times reporting they will stop paying 100,000 workers this week. Thats about half of their global work force. The point is they want to save 500 million a month by doing so. Look, the stock is down 3. 5 . Several downgrades this morning. Ubs for one. Ubs says they dont expect the theme parks which have been closed since last month to open until january of 2021. So as we talk about how long this is going to go, thats one estimate from ubs. 100,000 people not getting paid this week at disney. Stuart got that. Now look at the airlines again. They are still down. Some of them report their earnings or probably losses this week. Now look at boeing. They are ramping up production starting today. Tell me more about that. Ashley they are. 27,000 workers in the puget sound facility will be coming back to work for boeing this week. Today, those working on the 747, 767 and 777, all will be working starting today. Those working on the 787 will begin on thursday or friday. Boeing says it will stagger its shift times to keep people apart as much as possible, require physical distancing, also requiring face masks and voluntary temperature testing. They say the company as a whole have had about 200 employees globally, which doesnt seem that many, that have tested positive for the virus. By the way, boeings Ceo Dave Calhoun says the Aerospace Industry including boeing, of course, will need financial help from the government. Perhaps a little sign of progress when we see 27,000 workers returning to production this week in washington state. Stuart you know, there are some industries that have just been utterly clobbered by this virus. I think the principal industry thats really been hurt is the cruise industry. There is dreadful p. R. Out of this. Now the lawsuits are piling up. Susan thats right. Princess cruises is now facing a series of lawsuits in that they didnt or they werent forthcoming in information for the passengers in having them complete their itineraries and getting on board despite the fact there were cases of coronavirus. Princess cruises facing a series of lawsuits. We also heard same for celebrity cruises, owned by royal caribbean, Costa Cruises owned by carnival cruises and as a result, the industry is losing 92 million and more than 300 direct and 600 620 total american jobs each and every day and if this continues for the rest of the year they say they will lose around 51 billion and that will impact 343,000 total american jobs. Now, i should point out that as you mentioned, these are clobbered stocks so far this year and shorts, meaning those are betting the stocks will continue to fall, some of the highest on the market. We should point out also that in terms of the shorts, against the broader market, highest still despite the rebound we have seen since january 2016. So not everyone believes so far in this explosive rally we have seen from the middle of march. Stuart i just wonder how many people will want to take a cruise when all this is done, i dont know when that is and i dont know what you mean by when its done, some semblance of normal, i just wonder how many people will actually take a cruise. Susan i dont think a lot. Thats why you see this reflected in the stock prices and people are betting they will continue to fall. They didnt get any part, by the way, of that 2. 2 trillion stimulus plan. Why . Because they are not technically u. S. Companies. They are domiciled overseas. Thats why they wont get any help from the u. S. Government. You really have to be concerned about some of these names. Stuart you have to call it the perfect storm. It hit them square on. It just did. All right. Overall, we are still down on the market. Im not sure exactly check it now. Down 1. 8 on the dow industrials, 450 points. I have to tell you, look at that level. 23,700 almost 23,800. Remember, in march, about a month ago, maybe, we were at 18,000 and change. We have come a long way up and a loss of 400 points is not that big, especially when you consider that the price of oil is absolutely crashing. 11 a barrel as we speak. Look at campbells soup. They report higher sales, meals, snacks, beverages, you name it. They are selling very well as you would expect if we are all locked down, cooking and eating at home. The tenyear treasury yield, the anxiety indicator, the yield is down to. 62 . So money going into the safety of treasuries, raising the price, lowering the yield. Out of stocks, the risk asset. Gold, where is it . 1706 per ounce. Its up about seven bucks today. And oil, keep saying it, its crashed. Its actually made it up to 12 per share. But its still a crash. Down still 33 in a matter of hours. There you have it. The booze industry, i hate that word, its the liquor industry, the alcohol industry, its booming. Online liquor store drizly, they want their booze people want their booze in lockdown. They want their alcohol in lockdown, dont they. The ceo is on the show. They are doing well. Also coming up, candescent, the number one selling cannabis brand in california. I want the know how much their sales have gone up since the virus because theres a lot of pot shops not doing that well. The ceo of that company is on the program today. First listen to this. This is dead stop in real estate. New home listings, down 27 from a year ago. Obviously because of the virus. More after this. Stuart now, when i say oil has come back a little, that doesnt mean very much. It touched 10 a barrel earlier. Thats a crash. Now its at 11. 88, still down 34 . That still is a crash. Now of course, the price of gasoline continues to just tumble. We are now at a National Average of 1. 81. In wisconsin, its the cheapest average price in the nation, down to 1. 22 right there. That is extraordinary. I want to bring in steven schork, one of the top oil analysts in the nation. Ive got to tell you, you were right before, a couple of weeks ago, you were talking about oil crashing, maybe going down to zero in price. And maybe going to the point where we pay people to take it out of storage. Are we close to that level, you think, getting there . Yeah, absolutely, stuart. Our worst Case Scenario that we identified a month ago was the alltime record low from april 1986, the futures contract, 9. 75. We got to within about 75 cents of that number just about an hour ago. Certainly, certain market areas, up in the balkan, north dakota, saskatchewan plains going up in production, very well likely that oil is Still Producing too much, we dont have enough place to store it, will go negative. Producers will have to pay. We need to take their oil away from them. Stuart i know you dont really cover the other side of the market, the corporate, the company side of the market here, but i cant think, theres got to be a bunch of bankruptcies out of this no matter what the government does. Absolutely. We already saw one major producer go bankrupt a few weeks ago, whiting petroleum. Certainly with the lack of demand, we have to appreciate the United States and global economy, this is not a recession. This is a depression. This is not a supply story. This is demand story. So we are about to go into the summer which is our peak demand season for gasoline. This summer is dead on arrival. Its never going to happen. The demand with the lack of jobs out there and continued unemployment, we are looking at a longterm structurally weak market and we are looking at Oil Prices Lower for much longer than many people are currently anticipating. Stuart in that environment, can america retain its Energy Dominance and its Energy Independence . No, it cannot. The United States for the first time in 67 years last year was a net exporter of oil, that is Petroleum Products and crude oil. That is going to change. We will no longer be a net exporter. We will start importing by the end of the year. We lost that dominance in the here and the now. Thats not to say that we cannot regain it. We shall once we run through a number of bankruptcies through the oil patch and we will allow the bigger guys out there with the clean Balance Sheets to acquire a lot of good acreage at a very good price, so the United States will be back in the position one, two years out, but in the here and the now, no, the United States has lost that position. Stuart would i be right in saying theres absolutely nothing you can do about the price of oil until such time as we go back to work and demand goes straight up again . That may be a long time coming. Absolutely. Stuart all right. You got it right once. I hope youre not right again, because [ speaking simultaneously ] youre all right. We appreciate you being with us. Thanks very much indeed. Now then, another market, an entire market thats at a dead stop, i call it just flat on its back. That seems to me to be real estate. Ash, give me the numbers. Ashley yeah. Theyre not pretty, as you can imagine. New home listings, down 27 nationwide in the first week of april. Thats year over year. Its unfortunate because at the beginning of march, before the virus really took hold, new home listings were up 17 but nope, the virus has essentially really put a massive crimp into this industry. Realtors now are forced to do virtual open houses. There are no open houses. In colorado, by the way, the new law states that Real Estate Agents are not allowed to go into the house if the owners are still occupying it. That means homeowners in colorado are starting to produce their own walkthrough videos in an attempt to sell their home. As you can imagine, with all of this going on, the housing industry has been particularly hardhit. Stuart amazing. Oil, travel, real estate and now theres one other area thats been truly clobbered and thats the retailing sector, especially the department stores. Lauren, tell me about Neiman Marcus. I think we lost audio right there. The bottom line okay. Let me give you the story. Lauren is on remote. We had difficulty there with the audio. Doesnt matter. Neiman marcus is likely to file for bankruptcy. That tells the whole story of the department stores, doesnt it . We have seen stock prices just crumble. Macys last week was down to 4, 5, 6 a share, i believe. Now we have Neiman Marcus considering filing for bankruptcy. That just tells the story. Meanwhile, some retailers are doing extremely well. I noticed that walmart has now turned higher even in a downside move for the overall market. There are some winners. Walmart, best buy is up again, target still doing well. They are down today but have been doing well. Neiman marcus may be bankrupt. Speaker pelosi has ripped President Trump, calling him a weak leader. She says hes failed on the virus response. You will hear exactly what the speaker said. Next, i have a guy who says teslas stock, 737 now, he says its going down to 70 a share. I can understand that with gas so cheap, whos buying electric . Hes on the show. After this. Military veteran, heres money saving news from newday usa. Your spouses va streamline refi benefit lets you easily refinance when Mortgage Rates drop. And they just dropped to the lowest in newdays history. Refinance now. Theres no income verification, no appraisal, and no out of pocket costs. One call can save you 2,000 a year. Refi now. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Stuart all right. We are checking the markets. We are coming back a little bit. The dow is down 370. The price of oil is hurting stocks. Its struggled back up to 12 a share. So, too, is the delay in this new rescue package for Small Business. Supposed to be announced today. Havent got it yet. Markets not happy about that. Now show me tesla, please. Lets bring in gordon johnson. Gordon is the guy who has consistently said that tesla is going down and hes now saying its going to go down to 70 a share. Before we get there, gordon, explain to me why tesla is at 700 a share. Why is it there . Right. I think the reason why tesla is there is because you have a lot of optimism in the chinese retail space. You have chinese Retail Investors blowing into the stock which has pushed the stock up to 700 after it dipped below not too long ago. Stuart why do you say it will go down to 70 a share . Right. So if you look at teslas current valuation, they are valued at over 100 billion versus roughly 60 billion for volkswagen. Volkswagen sold 10. 5 million cars last year versus teslas 367,000 cars. Tesla needs to see tremendous growth. However, if you look at what happened 3q 18 through 1q 20, they included the model 3 as well as the model y and over that time frame, their sales growth is up just 5. 5 so their sales growth is declining significantly. When you look at the fact they had two factories running in q1 versus one factory in Fourth Quarter, they produced less cars in q1 of this year than they did in the Fourth Quarter of last year despite having two factories running. The point is, significant competition and a slowing in their growth we think will render the shares significantly lower. Stuart i have to just ask about the electric car business at all. Why on earth, i mean, all the Car Companies stake their future on electric cars. Why would i go out and buy an electric car when i can get gas below 2 a gallon and maybe for 1 a gallon in the near future . Theres no doubt thats going to be a near term head wind for the electric vehicle space. No doubt at all. Low oil prices, bad for the electric vehicle space. I think what investors are looking at when they look at evs is long term. The transition to ev. We 100 believe that is indeed going to happen. We believe over the next five to ten years, its going to be a significant transition to ev. The problem for tesla, however, is every major car company is going allin on ev so as before, essentially tesla had a monopoly on the ev market, now you will have significant competition. You can see that with significant share losses, they are seeing in europe and even the United States thus far through q1. Stuart i have 30 seconds left, gordon. Tell me why i should buy gold. Why you should buy gold. We think that if you go back to what happened in 2008 and 2009, there were two contributing factors. One was qe and the debasement of currencies and the fear trading gold. The opposite was emerging markets [ inaudible ] the shortest of dollars. We think gold is going to become a fear trade in every single central bank printing money. Thats why gold does well. Stuart ive got to go. I have a hard break. Ive got to go. Gordon, thanks very much indeed. More Varney Company after this. Stuart exactly 10 00 eastern time. It is time for my take. Here we go. Here is joe biden tweeting from his basement in maryland. Experts say if we had acted two weeks earlier more lives could have been saved. Trump failed to take swift action and were paying the price. All right. That is the familiar line, trump delayed, more people died. Oh, hindsight. It is so easy, isnt it. Speaker pelosi goes further said. Leaders take responsibility, so he is a weak leader. He doesnt take responsibility. Perhaps the speaker was trying to recover ground she lost when she showed off her ice cream selection in her luxury california kitchen. Or in february when she urged people to visit chinatown in san francisco. Its fine she said. Or perhaps she is trying to get out of the corner she backed herself into by delaying additional help for Small Business. Either way, when a politician calls the president weak in a national crisis, you have to wonder what kind of leadership the democrats themselves offering . In the democrat candidate debate between january the 14th and early march, there were about four or five of them the virus was very much in the news back then but it was barely mentioned. There was no suggestion of quarantine. Certainly no talk of stay at home restrictions. Mr. Trump cut off travel to china late january, but a week later at the New Hampshire debate china was mentioned in the context of climate change, not the virus. Then in the march 15th debate, the virus did come up. Bernie sanders used it as a way to get into the benefits of medicare for all. Joe biden, he managed to confuse covid19 with swine flu, which he called nhh 1 instead of its correct name, h1n1. When mr. Biden was asked to call a National Lock down, he would call a meeting. This is the candidate who now says delays cost lives. The democrats are offering no leadership here. Theyre sniping from the sidelines. President trump laid down the guidelines for getting back to work as safely and local conditions allow. He is letting the states make the call. The democrats criticism does not advantages the countrys wellbeing, it is taking shots at the leader is who is actually leading. They are saying contempt for the president is the way to win in november that is a risky strategy. Voters will ask who dealt with the virus, who led us through it, who really led america. Thats my take. Here is elizabeth macdonald. Host of the evening edit. Liz, good to see you. Democrats are offering no leadership whatsoever and theyre being nasty to the president at a time of national crisis, whats your take on this . Here focusing on the doing spin saying it was controlled. Nancy pelosi has been around since the reagan era. So has chuck schumer. Joe biden has been around since the nixon era. Infectious disease experts, since aids crisis 1980, we should get ready for epidemic or pandemic. Basically a lot of fingerpointing since then. It hardly came up at the democrat debate. Nancy pelosi tried to push back, to the no travel ban act. She pushed back against the president s ban on travel out of china but if the democrats have the foresight they claim to have had, why didnt they bring it up at debates . How come congress stopped funding the National Stockpile after it got completed after the h1n1 in 2009. Though shade it was fully stock. It wasnt funded. Got depleted of n95 masks. If they had foresight how come for decade they did nothing to prepare for pandemics or epidemics. Infecter schuss disease experts have been testifying to congress get ready it is coming. Through sars and merz, Southeast Asia is living through that. The u. S. Didnt step up. I did eight stories on anthrax attacks. Even then they were saying a pandemic was coming. Congress you need to prepared. Nothing happened. Stuart you got that right. Market check were down 300 points on the dow. Seven dollars lower on the price of oil. That is crashing. More people have been tested for the virus than anywhere else in the world. Susan come into this please, testing is surely the opens the door going back to work, right . Susan exactly reopening the economy. A Staggering Number released last night by President Trump. He said the u. S. Has now tested 4. 18 million americans. That is more than tested in france, uk, japan, austria, sweden, canada, combined. We also take into context as well the huge American Population in comparison to those countries but also new york state today will Start Testing for antibodies. Theyre launching a test of 3,000 residents to make sure they have the antibodies, they are safe to get back to work. This again is part of the reopening phase new york state is in. They reopened some of the harbors and marinas this is pinpoint when it comes to the u. S. Economy here in new york state. They want to get it open sooner rather than later. Stuart susan, seems the country is divided to reopen the economy and how. There is difference in political lines. More democrats favor clamp down. More republicans say open up. Liz . You know it is an excruciating decision because there is risk of second wave of infections. However there is 22 Million People out of work. That wiped out the job gains of the last decade. Let me back up. I think we need to listen to each other and stop fingerpointing. Stop personal political attacks. The American People are tired. Theyre exhausted. They do want to get back to work. We do need an economy to pay for things like public health, like medicare and medicare. So listen, the president is trying to fix a Freight Train that is racing down the traffic 100 miles an hour. He is doing it on the fly when he did in fact inherit a broken system, stuart. We had, here in new york state, andrew cuomo is now fingerpointing but new york state was supposed to have its own stockpile. All the states are supposed to do their own testing and have their own stockpiles. Until 1999 when the clinton administration, after the tokyo sars attack and fears of ebola, they set up a federal stockpile. Now the states sat back, well not get ready of our own stockpiles even though were supposed to have them. Arnold schwarzenegger saying in california, i had a pandemic plan to boost the stockpile in 2006 and nothing happened. So you know, the topspin going on here, the fingerpointing, the American People are saying, wait a second, we have a health crisis. Maybe there is a credibility crisis because it sure gets cold up there on the moral high ground when no one is agreeing with you, seen for years and decades what has been going on. Now you didnt get ready. Now the American People are seeing first amendment, fourth amendment, fifth amendment, problem, certainly tenth amendment is issue with states and constitutional issues are at play. Yeah theyre exhausted yeah were seeing protests. There is a reason why theyre tired around exhausted. They see one of the big crises is how government are not prepared so that is the issue. Stuart it is an economic crisis, we have to do something about it, and thats a fact. Thank you, liz. By the way President Trump suggested we would have a deal, extra deal for Small Business revealed today but so far we have not seen it. Must be a delay. Edward lawrence, first of all, edward, you tell us whats expected in this agreement . Reporter well the republicans would like to see just changing the number in the cares act. They just want to increase the amount by 250 billion. Were hearing maybe more related to that pot for the Payroll Protection Program. Democrats on the other hand would like to see more money for hospitals, more money for testing, more money for personal protective equipment, more money for front line workers. They want to lump in a lot of other things which the republicans would like to put in a new package to be negotiated as opposed to getting this out quickly. The new package being negotiated, republicans concern, it would take a little bit longer. They feel like just changing number of the cares act would today restart that pay row Protection Program. An interesting point here, shake shack says theyre giving 10 million they got because theyre not really a Small Business the criticism was. Im told from a senior Small Business Administration Official that money cannot be regiven out now. It will go back to the pot, that pot closed officially when it ran out of money. Only congress reauthorizing, can rethorpe rise the opening of that pot again. Yes, but money will go back there and sit and Small Businesses wont be able to use it. Stuart edward, well get a lot of this as we find out who got what because there are some companies questioning whether they should have gotten the money they got. Maybe theyre too big or wellcapitalized, whatever, there will be a lot of this backtracking. We didnt deserve it, were trying to get it back. That is the way it will go. Reporter one more question, shake shack, chase bank, that helped shake shack get their loan there. The big banks that helped some of the Bigger Companies and their bigger clients get those loans, were going through right now is to see if the big banks actually also helped how many Small Businesses they help related to that. So we no the big clients potbelly, shake shack, harvard, all got loans through those big banks. Well see how much the Small Business loans actually came through with that i talked again with some of my local folks in this area said they applied through big banks, chase one of them, and theyre waiting for verification that the loan went through. Which we know the program closed. Stuart there is a challenge on wells fargo, that they were giving out loans to Big Companies and not small companies. The challenges have begun. Im not surprised. Edward, keep us up to speed what is going on with the rescue package later in the day. Thank you, sir. The markets, this is all about the cries of oil, were down 7 a basement were down across the board. Not serious losses but were combing down. Oil now 11. 17 a barrel. Price of gasoline down to a 1. 81. Oh, that is gnat fast you got there. What im talking about is gasoline. That is down to a National Average of 1. 81 per gallon. Winners on the screen, they are not the winners, are they the losers. I guess they are. What are they. Biggest percentage winners in the dow which are down the least. You expect that . You got that. Disney is down three bucks at 102. Chevron is an oil company down 3 . American express is down 3 as well. Those are the losers by the way. Now lets go to ashley. Walmart virus challenge. Im told it is just keeping stores open, is that it . Ashley it is. This is for the countrys largestest employer. 1 1 2 million employees. The challenge is managing safety of workers and shoppers. Assuring local authorities and staffing stores and the warehouses. One of the Senior Executives at walmart says, stu, we are one of the few places in the country where a sizable amount of people are gathering. About 10 of walmart staff are on leave. They have unfortunately lost 18 people to the coronavirus but get this, over a Million People have applied for a job in just the past month at walmart. They have hired 150,000 of those. Stuart thats extraordinary. Thank you, ashley. Take a look at this please. Hundreds of people flocked to jacksonville, florida. It reopened the shorelines. A lot of people went. They all behave okay. Social distances we understand. That is jacksonville beach. Nfl draft going viral this year. Well speak to a top draft pick. White house trade advisor Peter Navarro said china hid the virus from the world. Watch this. Ground zero for this virus was within a few miles of that lab. I think it is incumbent on china to prove it wasnt that lab. For a critical sixweek period of time china used its influence at the World Health Organization to hide the virus from the world. Stuart does that shift the u. S. China relationship, militarily, diplomatically, call it what you will, is there a shift coming . Im asking general jack keane what he makes of the next phase of the u. S. China relationship. Well be back. Tums versus mozzarella stick bell rings when heartburn hits fight back fast. With tums chewy bites. Beat heartburn fast tums chewy bites i have always wanted to be a teacher. Ive been teaching for over 20 years. With everything going on, weve had to alter our classroom settings. We have to transition into virtual learning. On the network, we can have teachers facetoface with a student in livetime. They can raise their hand and ask questions. They can type questions. We just need to make sure that the education is continuing. vo at verizon, were here and were ready to keep students and teachers connected to the world. Thats why verizon and the New York Times are offering 14 Million Students free Digital Access to times journalism. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Stuart look, were coming back a little bit. Were only down 350 points for the dow. Look at price of oil. Im afraid we gone back to the 10dollar a barrel level. 10. 89, can you believe that . That is a crash 1 2 there. Come in, lauren. Knew news on restaurants. What have you got . Lauren this comes from the National Restaurant association. It is ugly. They say eight Million People in the Restaurant Industry are out of work. That restaurants will lose 50 billion this month. 240 billion come the end of the year. They are likely going to be the slowest industry to recover when the economy does start to reopen again. You have tom, coming up the famed chef in the 11 00 hour. A lot of restaurants are saying the payroll protection is just not going to cut it for them. Are they going to call for a separate fund just for restaurants . That is a good question. Something i would ask him, stuart. A lot of restaurants are complaining the way the Payroll Protection Program was set up it just doesnt, it doesnt help what they really need right now. They need more and different. Stuart restaurants will have terrible problem going back to business if they have to separate the tables. That cuts your revenue right off the getgo. I dont see how they come back with that. Lauren they have huge rents, everything. Stuart tom colikio is on the show. He is forecasting only one in five restaurants will survive, independent restaurants. He is coming up on the show. Subpoenaing completely different. This is video. A russian jet buzzing a u. S. Military plane. The second time this happened i believe in the last four days. So theyre at it again. General jack keane joins us now. Is there any significant to this or are they just getting at us . What is going on . Militarily there is no not much significance to it. What russia is doing, simply posturing. They want to send a message to our allies in the region that the United States is no longer the major country influencing this region. That russia is now a stakeholder. They have always had a navy base there. But now they have two airbases in syria as well. Theyre looking for another military base likely in libya. Theyre trying to tell our allies that you have got to do business with us in the middle east and there is evidence of course that that has shifted somewhat because of them have arms deals with russia. We can intimidate the most powerful military in the world at a time and place of our choosing. The media will pick up on it and well talk about it today is what their objective is. Stuart as the u. S. China relationship shifted and will it shift more in the future . I notice theyre not taking responsibility for the virus coming out of wuhan. Over the weekend they arrested democracy advocates in hong kong. Is the relationship shifting and in which way . President trump shifted university, he took over and put out a National Security strategy in 2017. Moved china from being a competitor the way most of the world looks at them, therefore a country we should crop wait with despite, despite difference in values. Where we are now with china and, there is a growing antichina feeling showing in the United States and the world. I think that the world writ large will move closer to the u. S. Policy which look at china, not just as a competitor, not just somebody you cooperate with a economy that large and a market that big, but look at them through the prism of what is really happening. They are pa predator, economically, geopolitically, militarily. They use Cyber Espionage on a massive scale. Disinformation on a massive scale. Therefore the policy shift is one of cooperation which well continue to do to a certain degree. You have to confront them and they must be contained. World opinion is shifting more in that direction, particularly with chinas deception, their gross negligence and recklessness, permitting a localized epidemic to spread into a worldwide pandemic encompassing a 190 nations. There is huge strategic opportunity here, stu, to put this at the foot of china terms of International Agreement and call for International Investigation as well. Stuart 20 seconds, do you think President Trump would shy away from a military confrontation with china if they pushed us too far . Well if china conducts lethal force, we have no choice but to respond. I believe china it is not in their National Interests to be that aggressive. Certainly not in the United States. I think were pretty smart how to deal with this i think we can find a path to deal with an adversary who clearly does not have, in their National Interests they want to replace us as worlds dominant leader. We know how to do this, weve done it with the soviet union in the past. Were smart enough to figure it out. Stuart general jack keane, always good to see you. Good talking to you, stuart. Stuart sure thing. Check this out. Nurses and doctors cheered as they enter a new york City Hospital as they go to work. Stand outside and cheer for them. Theyre volunteers, volunteers, come in from cleveland. Pot shops, marijuana shops, they are essential services in california but business isnt booming for them all. I want to know why. Im asking the ceo of canndescent, that is a pot company. Hes next. Turn on my tv and boom, its got all my favorite shows right there. I wish my Trading Platform worked like that. Well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. And let me tell you something, rodeo. 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New home listings down 27 from this time last year. Related companies, Real Estate Companies on the downside. Major League Baseball considering pay cuts. Ouch. Tell me more, ashley. Ashley yeah, the commissioner, rob manfred, may as early as today decide to spend socalled uniform employee contract. That basically covers major, minor league managers, coaches and staff. This would allow teams to basically furlough these employees and cut salaries. Now some teams have vowed not to do that through the end of may. But the commissioner withholding basically, saying that this contract can be suspended in times of a National Emergency. President trump did just that, announced a National Emergency on march 13th. So be interesting to see whether he takes that move today and whether we see some major League Baseball coaches, scouts, those types of employees be put on furlough. Stuart yeah. I bet theyre worried. Ash, thanks very much. Ashley sure. Stuart 21. 8 Million People were thrown out of work this month, the month of april. Danielle dimartino booth is with us. Danielle says a second wave of layoffs is just beginning. Tell me more about that, danielle. Well we had the first wave that was directly tied, you were just talking about cruise lines, for example. Cruise lines, restaurants, hotels, that was kind of the first line where there was a direct effect of covid19. Around now what were seeing is companies and professional and business services. There was an interesting survey out of zip. Com, we always hear the commercials. They found of people looking for jobs on their website, 39 of them are in business and professional services. A number that is kind of on par with retail. So they determined that there is this big second wave coming behind of people who companies have been, have been out of business, have not been working, have not had sufficient demand for long enough, theyre beginning to get rid of the back office people, people who we think of today as working from home. Stuart so do you think we can see the day of very near future, 40 million, 40 million americans will have been thrown out of work because of the virus and the lockdown . I hate to think of a number that is that high but if you look where the Unemployment Rate is, just based on initial claims and then, after initial claims, you have to be approved. Just because you apply for Unemployment Insurance does not mean the state is going to in turn approve you. If you look at a point in time today, the Unemployment Rate is about 13 . We have one more week before we get the final april number because of survey week for nonfarm payroll. We could see something along the lines of 15 Unemployment Rate, not in very short order. The st. Louis fed did a paper that said we could peak out at 30 unemployment. Your math, stu, going from 20 to 40 is not inconceivable depending on the capability much getting testing out there in adequate numbers. Businesses are looking for somewhere to 500 to 750,000, being a minimum test per day to find a Comfort Level to say, we are ready to open those doors. Were ready to open our doors for business. Get those employees working again. Stuart lets just do a hypothetical for a second. Suppose we do get the test industry wants. Supposing state governments say open up, you can do it, because you got the test. I dont know if it happens, if it does happen, do we have a v recovery for the economy . We go bouncing real back real strong again . No, i think there will be reticence in the economy. I think our best scenario right now is a ushaped economy. Because you open up all the businesses theoretically, if that ability is even there, we know some Small Businesses have not been able to Access Funding but there will be reticence in the community until there is, there is truly safety in numbers and people saying, im personally comfortable with leaving the house, if you look at fridays data, thank god we saw new york and new jersey begin to trail off but the other 48 states combined saw a fresh alltime high over the weekend. So were waiting to see the backlog of testing data come in, but were seeing serious accelerations in high population states as you go further south. That is going to be problematic as the news continues to trickle out. Stuart danielle. We got it. Grim as it is, we got it. You laid it out nicely. Danielle dimartino booth. Thank you very much indeed. That is a lot of negatives this morning. Oil, cruise lines, airlines, the economy, et cetera, et cetera, got it. I warrant to turn what may be a real winner. I keep hearing, susan come in please, i keep hearing amazon is poised to emerge as the big winner, stronger than ever. What do you say . Susan consensus. They report results at end of this meant, analysts say they will make 37 billion in sales. That is 10,000 per second, night and day. Dont forget amazon hiring 175,000 new jobs. Spending half a billion of jobs to pay them more. That takes their Global Workforce to one million. Over the past month weve seen the stock bump up, spike 42 . That cemented jeff bezos as richest man on the planet. He is worth more than 145 billion. 40 billion more than bill gates. The Third Largest company in the u. S. Stuart 10,000 a second, 24 7, unbelievable. Thanks, susan. Now, seeing tiger king on the prompter. Lauren, whats with tiger king . Lauren i dont know if your newfound interest in netflix taken you to tiger king yet, if it has, in the first seven days viewers streamed 5. 3 million minutes of tiger king. Last week they released the bonus episode, that, 4. 6 million minutes in just the first day. Certainly this is record setter for netflix. One other thing, when netflix reports their earnings this week, look, where is the fresh content going to come from . Netflix has been very good at getting content out there. Has a lot more content than a lot of other competitors. I dont know, how long can they go until they need new stuff again . Stuart very, very good question. I have not gotten into tiger king yet. I looked at it briefly. Not quite me. Lauren, thanks. Marijuana is considered an essential business in states that where it is open but, adrian joins us now. He runs the number one selling cannabis brand in california. Adrian, a frequent guest on the program. Many pot businesses are on the brink of failure so we are told. Youre doing well. You tell me what are your sales like . How much are your sales, say in california . Well i cant speak on behalf of all California Companies obviously. California as a state, however, average basket size, average purchase size is up 25 . Unfortunately store traffic is down on offsetting numbers so were seeing short of flattish numbers in california. However there is a lot of concern in the industry at this exact moment because there was a big stockup phenomenon when we were ordered to shelter in place and sales definitely seem to be dwindling off. I would say for our brand were very fortunate. Had we not launch ad value brand to coincide with the consumer pullback our company would be seeing 25 reduction. Stuart i wanted to bring that up. You have this new brand, i could say a cheaper discount brand, i think it is called bakers cannabis but youre really competing with the black market, arent you . Thats it. Oh, yeah. I would say generally speaking we have the worst Public Policy framework. Own what planet does something get deemed essential but it still gets taxed on gross profit or gross margins, not on its net income . On what planet cannon of the operators in our Industry Access any of the ppp or cares act programs while being deemed as a vital service. It has been a bit of an oxymoron. But as a result, we in cannabis have to learn to be nimble. We accelerated the launch of bakers cannabis co, which is a deep discount, value brand, in order to a, meet consumer need in this hard time but also to subsidize some of the sales we might lose in our premium brands. Stuart i understand. Adrian sedlin, thanks for joining us. Canndescent, thanks for being on the show, adrian. Absolutely, thank you. Stuart what do civil libertarians think about this . Amazon is going to use thermal cameras to monitor workers for the virus in the work place. How does the judge feel about that . I will certainly ask him from a civil libertarian basis. He is on the show shortly. The nfl gearing up for a virtual draft this year. Well tell you how thats going to work and well tell you that next. Stuart pretty much red across the board. Most sectors are down. The dow is off 320. That is 1. 3 . The real crash here is oil. Were going to keep putting it up bottom righthand corner of your screen. Can you believe oil is down to 10. 87barrel . Thats a crash. Facebook in the news. Lauren, what do you have for me . Lauren they have accelerated plans to launch starting today their mobile gaming app. They will compete with amazon twitch and youtube. They know everybodys staying at home, looking for things to do. So they have accelerated their plans to launch their mobile gaming app. It starts on google play. It will eventually come to apples ios. Stuart lauren. Hey, ash, come in for a second, please. Ashley yeah. Stuart a lot of people used to bet on sports. Now theyre hunkered down at home. They cant bet on conventional sports. Are they betting on Something Else . I bet they are . Ashley they are. There is always a place to find something to bet on. Turns out International Table tennis. Apparently, International Table tennis has not slowed down. It is one of the few places right now can get legal odds on. By the way, one of the gambling sites, draftkings has been so desperate, it is giving odds on out comes of tv shows like real housewives of new york or shark tank. They started taking bets on march 16th bet on Bernie Sanders and joe biden. They would take bets on particular words. One of es most popular words to bet on was you guessed it, billionaire. The nfl is expected to be a boost. They have something to bet on. They are expecting to it generate five million dollars. That is five times more in betting than last years draft. They have Something Real to bet on. Stuart if you like something to gamble, you have to have something to gamble on. The nfl is gearing up for a virtual draft. I think theyre doing a test run on that. Grady, what do you have on that virtual draft test run. Reporter the real draft is on thursday but theyre doing a dry run today. We might see the likes of dan marino and john elway get drafted or traded in the dry run. They have a lot of technology to test, each of the nfl teams they dont want to give away who they might actually pick. They will use former greats and hall of famers. In the normal draft teams are huddled in the draft room with all the key decisionmakers in one place. With it going on virtually it will be scattered. They depend on things like mobile phone lines, video calls and appears. Were told the way they share the draft pick with the nfl is through mike seat microsoft. Roger goodell will be at home reading the selection from his basement. If they are able to pull this off, the real mvps will be each teams it guys and calls. There is a lot to deal with to avoid cybersecurity and hacking. It will be impressive if they pull this off without a hitch. People are just craving for some sort of live sports even if it is not sports itself. It is just the draft. Stuart youre right. I will actually take a look at that . How will they do it . How will it come off . Broadcasting from your basement, good lord, that is not easy. I know that for a fact. Market still on the downside, coming back a little bit. Were down 279 on the dow. Susan, were off lows of the day for the stock market at least. Susan dont forget we came off the best two weeks for the dow since the 1930s, the Great Depression. Which left us 15 to 18 away from record highs again. This might be a bit of profittaking. It was pretty much anticipated that oil prices were cratering and continue to crater. That is good for the u. S. Consumer. It is bad for big oil majors. They make up roughly 10 of the s p weighting. Deutsche bank says every penny decline in the oil price that is billion dollars extra in spending power. The u. S. Economy is powered by the u. S. Consumer. We have 20 of the s p reporting earnings this week. It is pretty much priced in, stu. It will be ugly First Quarter of this year, down 11 for profits according to estimates. Cratering 21 in the Second Quarter. But then were expecting a bit of a rebound in the back half of this year. Stuart earnings reports that weve seen so far, i mean it is a very limited number. What weve seen so far down 29 in terms of profits compared to last year. That is a major drop. Youre right, susan, we know its going to be bad. Surely susan priced ahead. You look ahead. Some of thieves states, 29 states are available to reopen in phase one, this could be a faster and sharper rebound than anticipated and that is what markets are pricing in. Stuart what the market, what the stock market has not priced in, i dont think this crash in the price of oil. Granted it is good for consumers. I love paying a buck 50 a gallon for gas but not many people are driving. Nobody is commuting. Susan where do you put it . Stuart i dont know how that is priced into the market especially if it falls further. Susan, thanks very much indeed. Amazon, is working on on checking workers in the work place. You have the temperature, you have the virus whats going on . What do the civil libertarians think about that . The judge is next. I feel cared about as a member. Were getting a super competitive Interest Rate on our money. Were able to invest through the same exact platform. I really liked that they didnt have any hidden or extra fees. Sofi has brought me peace of mind. Truly thank you for helping me prepare for whatever the future has in store. Home values are up, and Mortgage Rates are at record lows. Thats good news for veterans with va loans. Thats me. By using your va streamline refi benefit, one call to newday usa can save you 2,000 a year. Thats me. Theres no income verification, no appraisal, and no out of pocket costs. Thats me. Put your va home loan benefits to good use. Call my team at newday usa. Stuart if youre just joining us the big story today is the crash in the price of oil. It is down 7. 86 per barrel. That is astonishing. It has not helped stock prices but losses in stocks have been moderated. Now were down just over 1 for the dow. It is nearly at 24,000 again. Come on in judge andrew napolitano. I want to talk to you about the amazon using these these thermal cameras to check inside of their warehouses to check for the virus and check temperatures. Do you have a privacy issue here or a Civil Liberties issue here . Well, good morning stuart. Remember, this is amazon and amazon in the work place. This is not, or i should say not yet the government. So what amazon is developing, it hasnt quite reached it, sort of dome shaped cameras we see everywhere in buildings and on street corners particularly in new york city but the software in there would allow them to zoom in on a particular person, say varney, and press the app and that would give them your temperature, your body temperature. So the question is, or the observation is there, is very little privacy in the work place. Your boss knows what you say on the phone when you use your bosss phone, what you type, every keystroke you press, you use your bosses computer, when you use a mobile device boss issued to you. Your boss is entitled to know your temperature. That has not been answered by the courts, because this is novel. There are many federal statutes which say no, youre going to like this phrase, stuart, medical identity is private. It is between you and your doctor. On other hand there are many statutes which say, the employ hears to provide a safe work place, for the employee, or coworkers and for customers. So eventually this will be resolved by the courts, in my opinion it will go in the direction of allowing these cameras to take your temperature for better or for worse. Stuart and the end result of all of this, the end of all of this, judge, and i think you and i agree on this is, that big brother feeling. That youre being watched all the time, no matter what youre doing, where you are, you are watched in some way and judged. I think that is the negative that comes out of this. And the other negative is, the government, under section 515 of the pate street act can get its patriot act, can get their hands on data amazon has on you. Say new york city made it an offense if your temperature is not 98. 6 but 99. Who at amazon has a temperature above 98. 6 . Do we really want to go there, George Orwell . Stuart that is, 1984, George Orwell, big brother, absolutely right, judge. You and i are getting far too much on the same page. Judge, well see you again soon. Big hour coming up for you. Restaurants issuing a dire warning. Next hour we talk to a celebrity chef, tom colecchio. He is the guy did unofficial survey saying only one in five independent restaurants will survive. What a story. While the restaurants may be suffering, ondemand delivery booming. Next hour we are talking to the guy who runs drizzly who lets you order alcohol right to your door. Coming up, oil crashed to 18year low. China, that is my opinion, china is the winner in all of this. That is coming up next on my take. Stuart i love cheap oil because it gives me very cheap gas. But today, Oil Prices Crashed and that is really bad. Yes, gas will get even cheaper but the repercussions from what is it, 10 a barrel oil are just plain terrible. For a start, American Drillers and frackers cannot survive 10 a barrel oil. They were having a hard time at 30. 10 is bankruptcy land. They are even running out of storage space. They will need massive Government Support and even then, not all will make it. The oil crash is a direct threat to americas highly successful Energy Industry. Russias a big loser. Its entire economy rests on oil. It is a petro state. Even Vladimir Putin has to worry when his country is locked down and the main filler of its economy is collapsing. You could say the same thing about any country that relies heavily on oil, most opec members are in deep, deep trouble. Even saudi arabia is looking at a ruinous decline in revenues. But china, china is a winner. China has to import almost all of its oil and at these price levels, china can supply juice to its factories at rock bottom levels. Thats a competitive advantage. Especially since those factories are now reopening while the rest of the world is at a standstill. We may be unhappy with beijings handling of the virus but they have been handed an economic advantage. Maybe thats why they chose to arrest democracy advocates in hong kong over the weekend. The oil crash makes them look stronger. Truth is, there is no way round all of this. The virus has cut worldwide demand for oil by an estimated 30 Million Barrels of oil a day. The producers can cut production as much as they like but the price doesnt go back up until the world gets back to work and we cant enjoy cheap gas until we start driving again. That wont happen until we get back to the daily commute, taking vacations and visiting friends and relatives. The oil crash is a shocking demonstration of just how badly this virus has hit us all. The third hour of Varney Company continues. Stuart all right. Brian wesbury is with us, an economist, and i want his response to my suggestion that chinas the big winner, that our Energy Industry is in bad shape. What do you say . Right. Well, i mean, stuart, im not going to say china doesnt win, they dont produce much oil at all, they import it. They are getting it really cheap. So everybody, the real losers are, yes, our industry, energy sectors, saudi arabia, russia, a lot of opec, but i mean, if all we do is look at oil, yes, china is a huge beneficiary. But i think china is going to lose massively in the supply chain game and that is this is the second virus we have seen out of them in basically the last two decades. Its pretty clear that they were hiding information. I think there are a lot of companies that want to get away from china. So when we do open up the economy, i think theyre going to end up losing more than they gain from just the drop in oil prices. So im agreeing on oil but i think in the bigger picture, they are going to end up losing from this rather than winning. Stuart another thing, i think one of the greatest achievements of the Trump Administration is to make america energyindependent and energydominant. But at 10 a barrel, do we lose that dominance . Do we lose that independence . Well, obviously, we are not going to be drilling new wells because the production cost is higher than the current price. I do believe when we open up the economy, demand starts to pick up, you will see the price go up and this is kind of a sad thing in a way, but its beneficial over the long run, and that is Energy Companies with really strong Balance Sheets are going to be able to pick up leases for fracking land, rigs and equipment at rock bottom prices. So the average production price in the fracking world in the u. S. Is going to end up coming down because of this over time. We saw it happen in 2014, 15 and 16 and its going to happen here again. Every time the price drops like this, and opec and russia start a war, they end up lowering our production costs and i think thats going to help us in the years ahead. Stuart brian, stay there for a second. Weve got more for you in just a moment. I want to return to this is earnings week and its a very big week for earnings. Susan, spell it out. Susan 20 of the s p is reporting earnings this week. A few dow components to keep an eye on. Ibm is reporting on monday, later today. Cocacola, travelers, intel and the like, verizon, amazon, american express. I was waiting for the board to come up. We are looking at declines for profit, that is expected in the first three months of this year. The s p so far, we are looking at declines of maybe 11 . Maybe 21 in the next quarter, march to june, because of the coronavirus. Then a rebound in the back half. Now, we havent pointed this out but this is the dow components reporting for the s p. Netflix is reporting after the bell on tuesday. People are expecting obviously the subscriber growth number to be the most important metric, you will get 7. 5 million at least global adds, some believe it will exceed that. And the guidance forward given people are stuck at home, they are streaming at record rates, they will add a lot more in the march to june period. Take a look at the markets, we have bounced back from that 500 point drop and look at the nasdaq. This is techheavy names we are talking about, in positive territory once again. We are looking at a rally in amazon and also facebook, even today alibaba and theres a bifurcation, dont you think, of tech names have outperformed and the old, shall we say stuart youre right, the tech names dont suffer if the price of oil is at 10 a barrel. Whats it to amazon . Whats it to microsoft . What is it to nvidia . Nothing to them. They are doing just fine, thank you very much. Susan it matters to chevron and exxonmobil and ge. Stuart texas and north dakota, it matters. Susan, thanks very much. Now then, it was kind of predictable. They are going after wells fargo because wells fargo is part of the team thats handing out the money. Lauren, is there a lawsuit here . Lauren there is. Jpmorgan chase sued as well. Heres why. Its a Class Action Lawsuit by a group of Small Businesses. This is what they say, that wells fargo and chase shuffled applications, they frontloaded those businesses seeking larger loans more money first, then paid the smaller amount and the reason the lawsuit alleges that they did that was so thae can make more money in fees. Obviously the government said with the Payroll Protection Program, first come, first served. This lawsuit says that didnt happen. We did reach out to both banks for comment and have not heard back just yet. The lawsuit states if you look at the final few days, they saw at the end when the program was running out of money, a spike in the number of smaller loans that were processed. Stuart okay. It was only a matter of time before they go after the big banks. They are just looking for an excuse. Thats an opinion. Thats my opinion. Today, more stayathome protests planned. Thousands took to the streets over the weekend in various states. Listen to what the president had to say about it. Roll tape. Some have gone too far. Some governors have gone too far. Some of the things that happened are maybe not so appropriate. I think in the end its not going to matter because we are starting to open up our states and i think they are going to open up very well. As far as protesters, you know, i see protesters for all sorts of things and im with everybody. Im with everybody. Stuart okay. Theres the president right there. Come back in, brian wesbury. I want to show you, this is msnbc host ali velshi. He says this pandemic is an opportunity to push universal basic income. Roll the tape. Have a look at it. Go. Heres one crazy idea that may be worth attempting now. Universal basic income. Ubi is a big deal, its a big idea. There are lots of versions of it but it goes Something Like this. Every citizen, regardless of their employment status, gets a modest income from the state, no strings attached, which allows them to live above the poverty line, taxpayer dollars that cut through the bureaucracy of means testing and proof that what youre doing is of value to society. Stuart all right. Brian, have at it. Universal youre laughing. Go ahead. Never let a good crisis go to waste and theyre not letting it go to waste. No, exactly. In fact, in a way, we are doing that. We have created such generous Unemployment Benefits that a lot of workers today can actually make more over the next four months than they would have if they would have kept their job. This is going to increase the Unemployment Rate, its going to make it harder for companies to restart their businesses. If you get paid for doing nothing, then you will do nothing. Its unfortunate that way. I fully understand that there are that we have wealth disparity and that some people have made more than others, et cetera, et cetera, but this way of trying to fix things is a disaster. And by the way, stuart, i thought of this today. Its like when we were talking about shutting down the government, for a week or two, while we dealt with the deficit, the whole world went nuts. This is going to kill the economy. Somehow we cant live without government. Today, the government has shut down the private sector. What we are seeing now is, i mean, we are going to have summer camps that are in financial trouble, soccer clubs, hockey clubs, universities, states, municipalities, Small Business, large business. The only engine that creates wealth to pay lets say a universal basic income, is the private sector. So when i look at this, you get a basic income for working and thats what we have to get open again. Its the private sector. Government cant make the economy grow. Stuart no. But weve got to reopen at some point. Got to do it safely but weve got to reopen. Brian, thanks for joining us. Good stuff. We appreciate it. See you again soon. Now then, one of the themes on this program is all about testing, Antibody Testing. Thats a vital piece of the equation, if we want to reopen the economy. Ash, whats the latest news on Antibody Testing . Ashley yeah. Well, the state of new york is trying to basically get a snapshot by sending out 3,000 tests to see how many people have been infected by the virus, by measuring antibodies. They will be sending out health kits and as i say, just a snapshot, 3,000 people. If you think thats a small number for the 19 Million People that live in new york state, it was exactly the same sample size used by germany that has a population of 83 million. Lets not forget, steve hilton told us last week, if you remember, of a Research Done by Stanford University that said it believes anywhere from 50 to 80 of people may indeed have been infected by this virus and a number of them or quite a few of them wouldnt have any idea. Only the fact they have the antibodies that is revealed when they are tested. Be interesting to see what results we get from new york state. Stuart if we find that a large number of people have had it regardless of symptoms, then that would bring down the fatality rate because if youve got a lot of, lot of people up there who have got it or had it but still, that same number of fatalities, that changes the relationship with whos got it and who died from it and thats a very important thing. All right, ash, good stuff. Thanks very much indeed. Bottom righthand corner of the screen, weve got oil now at 10. 02 a barrel. Down 45 . That is extraordinary. Lefthand side of the screen, the airlines. All of them on the downside. Hillary vaughn, whats the news on the airlines . Reporter whats really interesting is we are getting a sneak peek or just a look ahead at really how bad the losses have been for the airlines in light of this covid19 epidemic. We are expecting united in their Earnings Call to announce an over 2 billion loss in the First Quarter. Thats the worst loss for the Company Since the financial crisis in 2008. The trade group for the airlines is also forecasting how things have been and how the demand has dropped. To put it in perspective, at the end of january, there were over 111,000 flights worldwide every single day, but last week, that number dropped down to 28,000 flights and each flight averaged, stuart, just ten passengers. Bookings down 99 , revenue down 103 for all the major airlines. So a lot of analysts looking at this industry say ticket sales may not rebound until 2025. As part of this relief package that was given to the airlines, one of the rules is they cant lay off any workers until september 30th, but many of them have said their work force will be smaller coming out of this. Stuart . Stuart wont recover the ticket prices or ticket revenue until 2025. My goodness me. Five years hence. Thanks very much. Lets go to the casinos. Do we have news on their reopening . Susan we have the ceo of wynn resorts releasing a 23page plan to reopen the Las Vegas Strip hopefully in mid to late may. Thats because he argues nevada hasnt been hurt and hit as hard as other states in the coronavirus pandemic. He quotes that there are only 3700 cases of the 700,000 across the u. S. , 158 dead so far in the state but nevadas economy has cratered and been really facing a tough time as a result of this. 40 Million People visit las vegas each and every year but because of the coronavirus pandemic, its had to shut down. He says we are losing three million per day, 180 million over the past two months and also suffering in macao as well. Time to reopen, according to him. Stuart what a situation. Thanks very much indeed. Now, coming up, we have top chef judge and host, Tom Colicchio. He says most restauranteurs believe they will survive this pandemic. Lawmakers nearing a deal for additional funds to replenish the Small Business loan program. We hear its close. Nebraska, by the way, is leading the nation in per capita loans approved. Congressman Jeff Fortenberry from nebraska joins us next to explain whats going on there. Limu emu doug and now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Stuart do you own stock of 3m, honeywell or owens and minor . The pentagon has awarded them contracts to make up 39 million n95 masks in the next 90 days, all under the defense production act. 3m will get 76 million. O m, 29 million. Honeywell, 27 million. Only o m, thats the only one of the three thats up. Now then, i could see this coming a mile off. Property tax problems for local municipalities. After all, you know, theyre not going to pull in the money like they used to, at least i wouldnt think they would. Jeff flock, sort it out for me. Reporter yeah. You know, we are getting a break from the irs on our income tax but we are not getting that break largely on property taxes, and as you point out, its because you know, the money needs to come in. What does property tax pay for . It pays for schools, salaries for first responders, police and fire, pick up the trash, the guys that are continuing to do that, they got to get paid. If property tax doesnt come in, thats a problem. Im in one of the few jurisdictions right now where they are getting a break. This is lake county, indiana. Heres a house, this house property tax is 4500 a year on that. Even the first installment would be about, what, 2,000 plus . Thats more than your stimulus if youre not working. But the governor here in indiana has said the states can push the deadline back and they have pushed it back to july. They are getting a break but you know, theres a lot of states that have high property taxes and they are not giving residents a break. For example, you know this better than i do, new jersey has the highest property taxes in the nation. Median tax, 7600 a year. Connecticut and New Hampshire, over 5,000 a year property tax median. New york is not too far behind it. So you know, its a tough situation. People dont maybe have the money to pay the taxes but then the municipalities dont have the money to pay the people that are still working out there. Not a good situation. No matter what side youre on. Stuart plus property taxes, plus state and local income taxes, over 10,000, not deductible. Now, that makes a big difference for a lot of people, especially those in new jersey, new york, et cetera, et cetera. Its a mess all round, jeff. Thats the only way to put it. Mr. Flock, appreciate it. Sgli ive got a question. Why is it nebraska leads the nation in Small Business loans, theyve gotten more loans per capita of population in nebraska than any other state . Jeff fortenberry is with us, republican from the great state of nebraska, and i wonder if you can explain this. Why is this so . First of all, thanks for having me on your program. Look, here in nebraska, there is something that we Call Community cohesion. The banker knows the farmer, the banker knows the Small Business owner, the banker knows the barber. In other words, we have a very large and pervasive Community Banking system here. When the paycheck Protection Program was first proposed, i recognized very quickly this was a life send for Small Business and overall you know what we are trying to do. We are trying to protect our health care system, protect individuals and families and protect Small Business. We have a number of Good Business associations here. We get a lot of town halls with people, we say get in line, get there first but this authentic relationship that people have with their banker almost as an extension of the business itself, not an adversarial relationship you sometimes see with big institutions is very important here. Stuart congratulations. Thats a great place to be in. As you know, there is a delay in this second rescue package. It appears Speaker Pelosi is part of that delay. Shes also talking about President Trump and calling him a weak leader. Listen to this. He continued to put forth proposals that were not sciencebased, continuing to, what did he say, its a hoax, its magically going to go away. Okay, put that aside. But to proceed with policies which were not sciencebased, not evidencebased, and to blame others, leaders take responsibility. I said hes a weak leader, he doesnt take responsibility, he places blame on others. Stuart congressman, you heard it right there. Whats your take on a weak leader, mr. Trump . I think our country is in desperate need of some good news. We are all suffering this trauma of the pandemic. If you want to cast some blame, lets start in china where there was more interest in controlling information than controlling the virus. There has been a huge, its almost like an air lift, bipartisan air lift by congress, to help across the country. Last night i was on the phone with secretary mnuchin, secretary of treasury, right after i speak with you i will speak with secretary of agriculture perdue about help for our livestock producers and moving food into food banks quickly to help those in need. Again, we have approached all of this in a bipartisan fashion and again, the ppp program, payment Protection Program for Small Businesses has been a bright spot in all of this national trauma. Lets stay there, lets celebrate. Everyone is exhausting themselves. I get it, people are tired and things can sometimes get prickly but lets celebrate the successes along the way, fight this battle against this virus as a people, as a nation in solidarity with one another. Turn the corner, get back to work. Stuart get back to work, look on the positive side. Congressman, thanks for joining us. We always appreciate it. Quick check of boeing, please. Citi downgrading them to a hold. Thats not helping the stock. Its down 3. 4 . They are doing that because of quote, challenges beyond a dimmer arrow picture. Thats citibanks point of view. Down five bucks on boeing at 148. All right. Check the alcohol stocks. Drizly, thats an Alcohol Delivery company, says business is booming because of the pandemic, obviously. The ceo will join me. He says the shift in supply hasnt been seen since prohibition. Ill bet. First, top shchef host and judge Tom Colicchio joins me. He has a dire warning about restaurants across the nation just not reopening. We will discuss that after this. I wanted more from my copd medicine thats why ive got the power of 1, 2, 3 medicines with trelegy. The only fdaapproved oncedaily 3in1 copd treatment. Trelegy the power of 1,2,3 trelegy 1,2,3 trelegy man with trelegy and the power of 1, 2, 3, im breathing better. Trelegy works three ways to open airways, keep them open and reduce inflammation, for 24 hours of better breathing. Trelegy wont replace a rescue inhaler for sudden breathing problems. 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Look, reverse mortgages arent for everyone but i think ive been round long enough to know whats what. Im proud to be a part of aag, i trust em, i think you can too. Trust aag for the best reverse mortgage solutions. So you can. Retire better. And i like to question your im yoevery move. N law. Like this left turn. Its the next one. You always drive this slow . How did you make someone i love . That must be why youre always so late. I do not speed. And thats saving me cash with drivewise. [mayhem] you always drive like an old lady . [tina] youre an old lady. Stuart well, just look at amazon go, why dont you. This is hard to believe. In a down market, okay, the dow is down, what, about 1 , the s p is down about. 5 . Across the board, were down. Can you show me amazon . That thing is up 40, 50 bucks right now. 44 up. Its crossed above, again, 2400 per share. Ive got to say, amazon is one of the huge winners from this virus thing. Tom colicchio is with us. Hes the owner of crafted hospitality and top chef judge and host. This man is important in the world of restaurants. He said last week after delivering unscientific survey of restaurant owners, only 1 in 5 thought they would survive. Youre on the show right now, youre on live. That was a dire prediction. Whats the big problem that restaurants face . Yeah. [ inaudible ] over 1,000 restaurants across the country. The problem right now is that ppp was intended to help Small Businesses fund their payrolls but unfortunately for the Restaurant Industry, were not open. We were forced to shut down. If you received ppp funds, we had to hire our staff back, in two months time, were still not open, that money will go out the door but its still not going to get us where we need to open the door. Stuart when you do reopen, you will have to deal with this social distancing tables and all the rest of it baand barstools, you cant sit next to other people on a barstool, that will cut your revenue at least in half when you do get back to work. More than in half. I could see us operating at around 30 . The question isnt when we can open up and get guidelines to open under, its whether or not people feel comfortable going out in public in a crowded space. I dont think thats going to happen until we get a vaccine. Yeah, we are a good year away from getting back to normal. We need something more than ppp, number one. If the date of origin changed from when we receive a loan to actual actually when we open our restaurants and we had four months of payroll protection moving through, then we are [ inaudible ]. Stuart im figuring that the worst affected restaurants will be those im going to call them white tablecloth restaurants. Full service, real good food, high end stuff. They are the worst affected. But the smaller rural diners and faster food operations, theyre not going to be affected that badly, right . A lot of fast food operations are still open. A lot of the smaller restaurants, mom and pop places, they are going to be affected, too. But they have a smaller footprint. This is going to affect mom and pop, its going to affect Neighborhood Restaurants and when you think about it, when you drive down the streets of new york, if you look at who is anchoring the buildings there, its mostly food and beverage operations. You will see a lot of empty spaces which doesnt really serve the community. When we open the doors, thats what people will want to feel normal again, they will want to get out of their homes and see the same places and the same people who are typically operating the restaurants that they love and the waitstaff and thats just not going to happen right now. We need a better plan from our leaders right now. Stuart tom, ive got to say, its going to change the way we react and go out in public, the way we socialize. Its going to change dramatically. Im very glad you were on the show to point this out. We do indeed need a change in that plan. Tom colicchio, everyone. A good man. The Restaurant Industry is in deep trouble. Thank you, tom. Appreciate it. Thank you. Lets talk alcohol sales, shall we. Lefthand side of your screen, theres alcohol stocks. Mostly down, well, at the moment theyre down but they have done pretty well in this virus environment because people are drinking more at home. But ash, tell me what people are doing in pennsylvania. If im not mistaken, the Liquor Stores are closed there, arent they . Ashley they are. I did not know this, but the stateowned Liquor Stores basically sell almost all of the liquor in the state and much of its wine, and when governor tom wolf, the democrat governor there, closed a lot of businesses back in march, that included the state Liquor Stores. You know what happened. Everyone jumped in their car and went across the state border to try and find liquor elsewhere. By the way, that is a misdemeanor offense to do that. There are still Online Options but apparently its been very frustrating for people because they are just not able to fulfill the orders in a quick fashion. Its been very frustrating. Now the state says wait a minute, we will open up some of these Liquor Stores to curbside delivery. So you can go pick it up. Strange, i did not know the state runs most of the liquor. Its kind of like prohibition time, isnt it, like recession Great Depression days. Strange. Stuart the virus has revealed all kinds of odd things, shall we say. Leave it at that. Ash, thank you. Drizly is a website where you can buy alcohol from retailers and have it shipped to you. We have with us today cory relis who runs drizly. I have to believe you are in absolutely great shape and your business is absolutely booming. Tell me. We are. I think we are blessed to be one of the businesses that actually can succeed in this environment. With that actually comes a responsibility as well to keep the liquor supply chain, independent retail as well as customers receiving what they want, when and where they want it. Stuart are you kind of a grub hub for alcohol . If im in one state, i can get on your website and you will go to, what, the liquor store nearest me, take my order and then have it delivered to me . Is that how it works . Yes, very close. What we are effectively doing as a Software Platform is bringing independent and chain Liquor Stores online, allowing consumers to shop across their shelves. Obviously when you do that, you can get access to a larger selection, comparison pricing and with the convenience of delivery done by the store or a third party courier. Stuart you must be keeping check of whats selling. Im sure theres an upsurge across the board. Where is the biggest gain . Liquor, wine or beer . You know, from a category standpoint, not too big of a shift. Early on, i think we saw wine take a little bit of share from beer. Thats come back a little bit. But when you start to break down the subcategories, thats when it gets interesting and its different by market. I think you are seeing the cocktail culture. When you take away the bar and the ability to receive cocktails there, cordials, gin, you are seeing a lot of mixers come together at 1200 , 1300 growth rates more than we would have expected on our platform this time of year. Stuart you are in the right business at the right time and i dont blame you. Cory rellas, thanks for joining us. We appreciate it. Thank you for having me. Stuart take a look at shake shack. That company is returning a 10 million loan meant for Small Businesses. They say they are not a Small Business, they dont need it. They are sending it back. My next guest argues the big guys got the money, Small Businesses were shut out. Stay tuned for that. Ive got some terrific news for veteran homeowners from newday usa. Interest rates have dropped to record lows. Newday usa makes it so easy to refinance that one call can save you 2000 a year. Newdays va streamline refi lets you refinance without having to verify your income, without getting your home appraised and without spending one dollar out of pocket to get it done. It is the quickest and easiest refi theyve ever offered. One call can save you 2000 a year, every year. Stuart as you have a look at that market, we are still down but not as much as we were. I do want to tell you this. Governor cuomo of new york has just said 478 new yorkers died in the last 24 hours from the virus. That is indeed a dreadful human toll but it is much lower than the daily toll that we have had previously. If you can call that progress, we will call it progress. We just heard it right there. The Main Financial news of the day is that crash in the price of oil. Bottom righthand corner of the screen, down 7. 83 a barrel. All the way back to ten bucks. Susan, give me some context on this. Susan we are looking at extreme selling in oil, down to 1998 levels at one point. The reason is because it has a lot to do with mays futures contracts expiring tomorrow and the 10 to 12 you are getting a spot price in cash delivery, because there isnt anyplace to put it. No one wants it, no one is using oil, planes are parked, people are not driving, and thats why you are looking at no storage available with the glut of oil across the u. S. But if you look ahead to the futures contract per se, the month of june, we are looking at a bit of recovery. June delivery from what i see is at 22 bucks a barrel. July is 25. Futures contract for august is looking at 28. So if we get past this, for the may and june period, we could be looking at gains once again, a rise in oil prices. At least this crash might be temporary. Stuart i have to say thats doubtful because you dont get a recovery in the price of oil until you get a recovery in the demand for oil which means we are all going back to work and i think thats some where down the road. 10. 38 a barrel as we speak for oil. Lets go to shake shack. I think they are going to give some of their loan money back. Lauren, tell me more. Lauren 10 million. They are returning it to the Payroll Protection Program, to the government. When they found out they could get the money, they wanted to keep their employees working so they accepted the funds but when they learned that so many smaller restaurants werent able to get access to funding, they said you know what, take our 10 million back and give it to the small workers that need it more, the smaller businesses that need it more, so they can stay afloat. At least 12 Public Companies have received money from this program and its bad optics in a lot of ways but you have to remember, the government got this out really fast. It is imperfect. There was no rule book or no manual and these are some of the complications that we are seeing arise. Stuart yes. They did pump it out real fast, record time. You can understand some snafus, shall we say. The bottom line, criticism is still that the big guys got it more than and quicker than the little guys. I want to bring in brad close, National Federation of independent businesses. Brad, is that, from your point of view, from what you have seen, is that accurate . The big guys got it, the little guys didnt . Yeah. We are certainly hearing a lot of frustration from very Small Businesses that they feel they have been shut out of this process, that the loan application took a long time, that if they werent connected with a large bank it was much more difficult to get that application started. And of course, about a week ago, the funds all ran out and they are waiting on congress now. Stuart is that a function of the speed of the rollout . Is it a function of the fact that the very smallest operations probably wouldnt have all of their paperwork ready to go . Was it Something Like that that created this anomaly . I think the speed certainly helped. It was pretty clear from the start that the government bureaucracy had a hard time dealing with this and disbursing the loan, getting the data out and getting the rules and regs out to the financial institutions, that was a real problem. But most Small Business owners got their paperwork together pretty quickly to apply. It wasnt that wasnt as much of a problem. You also saw a lot of banks, especially larger ones, where Small Businesses dont generally bank, being able to make sure that clients who were well banked, had debt with them already, credit lines, were able to get these loans pretty quickly. Thats why when i think you see these numbers like shake shack getting 10 million and returning it, that raises alarm bells with Small Businesses. Stuart Harvard University got 9 million and have got an endowment of 41 billion but okay, you are shaking your head. There you go. Just a few moments ago, we had Tom Colicchio on the program, top chef, he says look, we want to get some money from the government but to get that money, weve got to keep all our staff working all the way through into june and then weve got to keep them on the job even when we go back to work, when our revenues will be way down. You think theres some tinkering required with the rules on this Small Business help . Yeah, absolutely. The rules as set up now assume that Small Businesses are going to go back to february, to precovid19 employment levels, when this program runs dry and thats completely unrealistic. They need to build in some tapering on these programs. They need to have a longer runway for businesses, especially those in the service sector, Small Businesses in the restaurant area, entertainment area. Its going to take awhile for consumers to come back to a lot of these businesses and to expect that they are going to operate at the levels they were operating at two months ago with the same level of employment is completely unrealistic. Stuart from your point of view would it be accurate to say we are in a depression . I dont know if i would say that. I would say Small Businesses are really hurting. The revenues not coming in the door. About 93 of the ones we have polled said they have been impacted negatively. They are desperately trying to hang on right now. So each day that goes by without congress appropriating more funds, fixing this program, making sure it goes to the little guys, more restaurants are going to close and more employees lose their jobs. Stuart youre right. We were expecting to hear about this next rescue plan today, expecting to have it approved in detail today. We still havent got it. We are waiting. Brad close, nfib, thanks for joining us. We appreciate it. Thanks for having me. Stuart thank you. Gyms crediacross the country eao open their doors but will people go back . Do they feel safe going back to a gym . Next, i ask city row founder and ceo, i ask her what she thinks of the administrations plan to reopen america. This is an athlete, twenty reps deep, sprinting past every leak in our softest, smoothest fabric. Shes confident, protected, her strength respected. Depend. The only thing stronger than us, is you. Shes confident, protected, its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] stuart the gym Company Called 24 hour fitness, okay, they are considering bankruptcy. The virus has forced them to close all of their 448 locations all across the country. Bankruptcy could come for that company, 24 hour fitness, in the next couple months. Theres another gym company, golds gym, they have been forced to close permanently over 30 locations across the south. Thats golds. Not good. The ceo and founder of city row is with us. Welcome to the program. Good to see you. Thank you. Thank you for having me. Stuart lets get right down to this. I think any gym operator has a huge problem with social distancing and whether the public wants to come back into a gym and exercise in public like that. I dont see any way round that problem for you. Tell me. Yeah, i agree. Listen, its exciting we are starting to talk about it, but it has real implications for our business, right. A lot of gyms, people are sharing equipment, running around, just because we can reopen doesnt mean that we will, especially not right away. I think we need to understand what the measures are going to be at a local level to ensure the safety of our clients and staff. City row specifically is pretty well positioned considering everybody has their own footprint. You do not share equipment and classes are limited to 15 or 20. As an industry, theres a problem that we are all going to have to deal with. Stuart how do you think people will react . I mean, i know its very very hard to say and im not a gym guy myself, but i could see how there would be some reticence, sweating away in a gym with other people. You know what i mean . Totally agree with you. I think theres going to be a section of people, those banging down the doors day one, cant wait to get their sweat on, missing their clients, missing their community, and then some people are, you know, hey, you know what, im going to stay away for a little while, im going to continue with my virtual classes, we have an ondemand app for classes. I think we will see a wide range of spectrum for a long, long time. Stuart i want to tell you something. I have a lot of guests on this program whose businesses and industries are really under a lot of pressure and they are trying to get around it. I want to thank you very much for hitting this headon. You know theres a problem and you have acknowledged it and told us about it. We really appreciate that level of honesty. Cityrow fitness. I hope you come out of this and do well in it because you deserve it. Thanks. Thanks very much. Stuart helaine knapp. More varney after this. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Heres the thing about managing for your business. S when youve got public clouds, and private clouds, and hybrid clouds things can get a bit cloudy for you. But now, theres the Dell Technologies cloud, powered by vmware. A single hub for a consistent operating experience across all your clouds. That should clear things up. Stuart dont miss it please, America America works together. A town hall with mark cuban. An interesting guy. Send your questions here it is investedinyou foxbusiness. Com. Got it . Charles payne also joins our show tomorrow. Better check those markets, please. Were still down pretty much across the board. Were coming back. Nasdaq is up. Dow is down 177. Like to pack in good news. Ashley, germany, reopening some of its economy . Tell me. Ashley germany opening some shops as it denmark and czech republic. Poland is allowing people to visit National Parks and forests. Just a little sign things are trying, trying to get a little bit of normalcy in europe. Stuart got it. Light at the end of the european tunnel at least in europe. My time is up. Neil, it is now yours. Neil all right. Stuart, thank you very, very much. Were following up on that. Were following up what is slipsliding away with oil here. Ronald reagan was president last time we had price this is low. What is fueling it is the fact even if they were to agree, namely saudi arabia and countries like russia, other countries within, outside of opec to cut 20 Million Barrels a day, they have calculated the loss in demand really equals more than 30 Million Barrels a day. So theyre just you know, going against all odds and into the win. It doesnt really improve the picture for oil as it owe lapses that has hit some principle dow energy components, exxonmobil,