Many citizens are demanding an end to stayathome orders right now. Well have the very latest on this revolt. One country, south korea seems to be doing right. All that and so much more on making money. Charles all right. Stocks under pressure all day long but it is crude oil the center of attention, folks. The may contract down 98 , a record low. On friday, Energy Companies ironically they were the biggest gainers in the entire market even though crude was down we had a great guest on, a oil executive. We wondered what he thought had to happen with the commodity price. He said that the oil industry had to do something it never did before. Take a listen. The choice is clear right now. We have twoways we can go about this we do nothing. That will lead to single dollar oil prices. It is going to decimate the domestic industry. Over a million jobs will be at risk and it is going to increase our dependency on foreign oil. Or we are part of a Global Solution to what is clearly a global problem, a global pandemic. Charles joining me now, our oil expert phil flynn. Phil, if you heard that, i got to tell you, this kid, young 3yearold oil industry executive said early last week, Texas Oil Commission they have to stop production. Maybe white house has got to stop production. Opec and russia have got to come to their senses. He was so prescient when he said it could trade in the single dollars. He sure was and he is absolutely right. Were seeing that. The Texas Railroad commission will meet tomorrow to make a decision. They have been already debating this concept. Should the Texas Railroad commission join opec cutting production . Is that collusion or is it a situation where they have to act to save the Global Oil Industry . I think right now, based on what is happening with the futures prices today, they will lean towards, you know, hey, were doing it for what is good for the oil industry. It is kind of industry, because you mentioned the Texas Railroad commission. They have a checkered history. Kind of years ago they controlled price of oil. They controlled all the trains. They controlled all the production. They set the prices for the world. Now of course opec has taken that over for a long period of time. The u. S. Came back into play. With this oil glut to save the Global Oil Market right now they have to take some significant steps to take oil off the market or we may experience what were seeing in the may contract a month from now in the june contract. Charles phil, we, we have opec and russia. They have 10 millionbarrel cut. Other countries chipped in it, i think the United States and certainly mexico. You can tell right away that just wasnt enough. The bottom line asia, air traffic has dropped 95 . There is no demand for this. So the folks who, these countries, russia, saudi arabia, is it possible they come to their senses and say, maybe a 30 millionbarrel is necessary or something even more drastic . I think so. We have already heard reports that saudi arabia and Vladmir Putin have been on the telephone. That they say that theyre prepared to do more if needed and i cant tell you anytime it has been needed more for dramatic production cut. One of the things im disappointed with, it seems like both saudi arabia and russia, when they agreed to this production cut, you know, decided to take their time about it. It seemed like they wanted to sell as much oil as they could before the deadline, before they really started to get serious about cutting back production. You know we keep hearing about this 10 to 20 millionbarrel cut t doesnt even begin for two weeks, right . Doesnt begin until may the 1st. For next couple weeks they will flood the market in oversupplied situation. Charles right. You know, i say move over, king pyrus, if you thought that was pyric victory, look what these two guys did . Yeah. Charles before i let you go, phil, a lot of stuff swirling around, buying for Strategic Oil reserves. Putting tariffs on saudi arabia oil. Maybe paying u. S. Producers not to produce oil, any of those good ideas for you . You know i think buying oil for the reserve is, buying low. Selling high. That is a great thing. To pay producers not to produce. We do it for farmers. May should do it for Oil Producers this one thing. What we learned about oil, it is one of the most important strategic commodities in the globe. Well need the energy industry. We have to support them when theyre down. Charles phil flynn, always appreciate it. Thank you very much. Meantime, folks, oil is really dictated the direction of stocks which opened much lower. They tried to rally, pulled back down. But i got to tell you, overall it has been a mindboggling market reversal since that march 23rd low. Now the record bets for this market to go lower. The biggest short positions in history. Ironically, that could power the next rally. Bring in our experts, first take on this oil blast and also short squeeze and dividend plays and how do you value stocks when there is no p in pe . David nelson and Gibbs Wealth Management erin gibbs. Erin, let me start with you. Your thoughts first and foremost on. News of the day with the oil plunge. I mean, wow, this is, we knew that there was some big concerns, reading about this on friday some of the futures were expiring but this is definitely, you know, unprecedented, this type of plunge. And i do, i actually think that last guest made great points. Charles david . I think charles david, let me bring you in as well. Were ignoring the elephant in the room. Weve been attacked by saudi arabia. This is the tail end of a near Nuclear Strike on the u. S. Energy complex. Then you have all this oil flooding over here. It begs the question, this is an ally at this point. Either it is an irrational move by saudi arabia and russia when they went to war. They did this, they timed this exactly when demand destruction was going to be at its highest here in the United States. If this is an ally we dont need anymore like them. I think you will see a backlash in the United States. You will see hard hit states, senators and congressman question the military hardware we send to this region of the world. Charles yeah, but meantime you know, right 30 minutes before the show i must have gotten half a dozen communiques from different investors, they warranted same thing, what should i be buying, what contract should i own, what stock should i own . The idea, erin and david, someone will come to the rescue. No way something strategically important as crude oil to all the Different Countries and economies should languish at this level. Is that, erin, something you thought about . Yeah. Weve seen it exactly over and over with airlines, with certainly oil a more critical part of our infrastructure and economy. I would certainly expect there would be some sort of stoppage, some sort of assistance to the oil industry. Obviously you know, weve seen it with car manufacturers, any Big Industrial giants in history. Clearly getting overwhelmingly hit hard. Charles yeah. I mean i like diamond. I like concho. I think apache. I think these names could get a huge bounce, david. Obviously there is a lot of risk there again i cant believe someone will not take some pretty swift action here over the next 24 to 48 hours . I think for a lot of these companies, the companies are going to survive. But sometimes the equity will not. There may be new owners at this point. We still focus on companies within that space. With still, reasonable Balance Sheets. That would be at the top. List would be exxon or a chevron. Yeah. Charles switch gears, go ahead, im sorry, erin . Oh. I Pay Attention to the creditworthiness of those that are highest risk of defaulting bankruptcy will be vulnerable. Actually look at therapy credit rating. Charles oil down more than 100 . Earlier today in canada we had oil trading at a negative. This is not necessarily well, it is unusual in the sense that it never happened before but it happened in canada just a few hours ago. I think this is a major, major signal being sent to the powers that be that might be able to fix this i also want to talk about this market. I think this resolve is amazing. Folks three names in the dow are associated with oil, dow chemical, chevron and exxonmobil. You add in boeing, the fact is down only 281 points to me is remarkable. Erin, the earnings season began last week. To me one trend is beginning, maybe it can continue. Companies announced they were hiking dividends were handsomely rewarded. Johnson johnson was higher, costco was higher. Is that something for viewers looking for quasisafety should consider . It is important also. It is message, they are able to save cash to pay dividends. Sop companieses are cutting dividends or cutting them back. That is rance sure for investors to have enough to pay investors. Charles david, the buzzword on wall street has been quality. I guess maybe, if you cant go you there the books, you dont know how to read a Balance Sheet per se to erins point, if a company is hiking their dividend they must be a Quality Company to degree, no . It is usually a pretty good sign. Youre talking about the designated survivors. Talking about some of the best names in the market right now. Look into the Health Care Sector for company like abbvie, reasonable payout ratio. Even technology, ibm im not a fan of the company at any means, they can cover the dividend at 4. 8 . Avoid names out there with high dividends, like Iron Mountain 230 payout ratio. That dividend is not going to last. That will get cut. Charles i brought up earnings. Second round of earnings this week, intriguing names. Before i let you guys go is there one specific name that sets tone for you, erin . Earnings again well look at our big bellwethers. Well look for Technology Space is microsoft. I think apple, theyre more after retail play. So i think that is [inaudible] looking for Industrial Software services will be important one. Ibm, microsoft are the big once. Charles microsoft, reporting, ibm reporting tomorrow. David, erin, we have to leave it there. Thank you both very, very much. Were done with ppp were talking about big businesses, right . Theyre cashing in and shutting out so many Small Businesses from the muchneeded loans. Coming up shake shack returns millions but other Big Companies are keeping the money as Small Businesses can only hold on to hope right now. It was dismissed by the main street media as a fringe movement, the lockdown protests are erupting across this company. Will protesters sway governors to stop the stayathome orders . More on later in the show. 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, her strength respected. 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. Charles get backed here on price of oil, crude extending losses, going negative for the first time ever. This is the may contract down 120 . Their other contracts are trading too. The june contract is now 15 . Jewel off 6. 8 . August off 5 . September off more than 3 . We are seeing a record, not a great record either, a record in the day, trading day of oil. Were going to continue to keep you updated there. Meanwhile congress, well, theyre prepping for a vote to further fund the Payroll Protection Program but now there are Cautionary Tales are surfacing. Big business getting millions of dollars of loans earmarked ostensibly for small business. Were talking Companies Like shake shack, potbelly sandwiches, ruth chris. Between them they got 30 million. Do these ppp loopholes, they need to be plugged before we put money in the program . Joining me from Kings College in manhattan, Fox News Contributor brian brenberg. Brian, first and foremost pox on both houses for letting the money run out in the first place and then when i see a bank like jpmorgan say on one hand we gave out 14 billion but we still have 26 billion in applications and they were the ones who funneled this money to shake shack to potbelly, i hear from a lot of Small Businesses said they put their applications in with jpmorgan and Jpmorgan Chase and Nothing Happened . Yeah. They got stuck at the back of the line, charles. I mean that is the problem here. Look, its great shake shack gave back that 10 million but the fact is they got in the line and they soaked up money would have gone to fund 200 Small Businesses who desperately needs those loans. I agree, a pox on both houses t doesnt absolve anybody. Congress has to top off the fund so the Small Businesses who need it at the back of the line can finally get it. Big businesses went to the well should be asking themselves where else do we have access to funding that Small Businesses dont . Shake shack can go to the public market. Do that. Dont take money from the local day care that cant go to Public Markets that desperately needs 20, 30, 40,000 that need them to get you there the next month or two . Charles brian, there is all kind of numbers floating around but apparently mnuchin talked about another 300, 310 for the ppp program, 50 billion for the eidl which of course we talked about. No one knows how it works yet. 75 billion for hospitals. 25 billion for testing. But we also know that there are a whole lot of other things being pushed into this, it comes back down to whether these law make remembers willing to do this, right . Theyre willing to hold out any longer as they horse trade while these Small Businesses suffer and go out of business . Well thats just it. There is horsetrading going on in washington and Small Businesses needed this money last week. They needed it before the thing ran out. May 1st is coming. They have bills coming. May 1st, by the way, that might be the date where some of these businesses say well have to close our doors permanently because we simply do not have the cash to continue to pay all of our fixed costs. So the delay here is unconscionable. It just looks to me like so many leaders in congress and particularly on the house side dont have a clue what Small Businesses are dealing with, dont have a clue about urgency of issue, demand, they think this is government solving problem. Government cannot solve the problem. They can provide relief until we get the economy open. That is only thing ultimately that will help Small Businesses here. Charles brian brenberg, thank you very much. Always a measure to speak with you. By the way, folks, this thursday i host America Works together. It is a virtual town hall joined by very special guest billionaire mark cuban. If you have a question for mark, about the economy, investing, how different a postcoronavirus world will look, message me at fox business on facebook, instagram. You can also email us invested at you foxbusiness. Com. You want to put a video of yourself asking a question. Tweet me cvpayne. Your may be among those answered thursday here at 2 00 p. M. Eastern. Meanwhile lockdown protesters are storming across this country as the u. S. , one of our more frequent guests is calling this really a rosa parks moment. Is this life versus liberty or are they won and the same . Well be right back. S. By refinancing now, you can save 2000 a year. And newdays va streamline refi shortcuts the process. Veterans can refinance with no income verification, no appraisal, and no out of pocket costs. One call could save you 2000 a year. Charles protesters are fighting against stayathome orders as more lock down protests continue to erupt across this country. Pennsylvania, north dakota, connecticut, maine, maryland all today. Cheryl casone in new york newsroom with more. Cheryl thats right, charles. Colorado, tennessee, florida, wisconsin, just to name a few. Today thousands protesting in pennsylvania at the state capital in harrisburg. Lockdowns extended until may 1st. Organized by the reopen pa and lock down pa. Against excessive quarantine. All the groups were formed in the last five days through social media. 10,000 members in the three groups. This is just crossing. Governor tom wolf Just Announced they will extend the lockdown to may 8th. They moved it from may 1st to may 8th. Want to get that in. Now to maryland, group reopen maryland, hitting downtown annapolis. In missouri, facebook group, reopen missouri has 4320 members. They have a rallied planned for tomorrow in springfield n arizona, conservatives hold patriots day rally. High noon, in phoenix. Even new york governor andrew cuomo, mentioned the National Movement saying quote, we dont need protests to convince anyone in this country we have got to get back to work. One note, charles, antiquarantine protests have been organized through facebook in california, new jersey, nebraska, reportedly removed from the platform at the instruction of these states because it violated stayathome orders. As we see some of those folks dont want to stay in the cars during the protest. Theyre pretty angry. Charles, back to you. Charles they certainly are, cheryl. Hundreds protesting outside of the ohio state capital despite the governor the said they will start the process of reopening on may 1st. I want to bring in ohio congressman warren davidson. Thanks for joining us. People, just around the world. People are fed up in this country in particular where it feels for many people were crossing the line of wanting to preserve life per se and encroaching on liberty, that many believe is the true bedrock of our nation . Yeah. I think that is the tension, charles. You look at twoway tugofwar has opinion framed as between you know, Public Health and reopening the economy but what the protests are all about is that third point is freedom. Americans generally take that for granted. It is a distinctive part of our culture and it has been infringed upon in a lot of cases more egregiously than others. I think you see the pushback most strongly in states where the governors actions have been hard to reconcile like in michigan where you can go out in a kayak but not a boat. And youre looking for rational things, i can be socially distanced and fish in lake michigan. So you see some of that pushback. Part of it is emotional but i think a lot of it proves a point, people can only be restrained from way of life in the culture for so long. Charles how do we reconcile this . I read a report this morning that, in europe, they could be looking at 59 Million People unemployed and this thing lasting through 2024. How, youre part of the group that ultimately will help, have to help decide this. How are you reconciling this . Well its an honor to be part of the president s reopen america task force, essentially a committee of congress, 22 republicans, 10 democrats. So weve had some brief meets but i think, you have to take into account the Public Health piece and Public Health piece of staying close. Talk about hospitals for example. If you have covid19 or an emergency hospitals are still functioning that doesnt mean if youre not in the emergency room for a heart attack that you dont still need extents or bypass surgery or hip replacement. For Public Health, even, talking missing a cancer diagnosis by a month or two. This cant go on forever. There has to be save, standards based way to work. That is the point in phase one, go from essential versus nonessential and everybody hunker down, to lets get a safe way to work, with safeguards. If those safeguards can be followed, then the ppe requirements are minimal. But if youve got to be inside of the physical proximity of another person you have to ask what is the appropriate ppe . A lot of parts of our economy can function remotely. A lot of people who didnt realize how remotely and effectively they can work remotely are doing that. But some parts of the economy will have to be physically present. We can find a way to do that safely. Charles to that point, we see an overseas norway, denmark, as you australia austria, italy, the epicenter of this crisis, all determined to come back online, determined to get wheels of commerce moving a little bit here. Where is the pushback coming from . Is it really scientists kind of saying, bill gates, you know those types saying hey, keep us shut down for 1months, 24 months. It is better part of valor . This thing would be completely gone, well have a vaccine, whatever the economic damage is well try to pick up the pieces . Well you look at, you were covering an earlier segments about literally negative oil prices. You know, do not have a way of life that functions without a pricing mechanism. If there is no demand side, there is no buy side, there is no price signals. Our whole economy is interdependent. That is the piece coming back in part due to essential versus nonessential. Not restrictions on freedom but irrational restrictions f you can operate this business, if i can follow these rules, why cant i operate my business and have my livelihood panned take care of my family and my neighbors. I think that is part of the pushback. You do see around the world just like you saw around the world some places closing first and other are opening a lot of people want to push against donald trump narrative. Reality it is a broad bipartisan sense there has to be a way to operate more of our economy and certainly gradually and safely but soon. Charles congressman, thank you very, very much. We really appreciate you spending time on this delicate balance. We have to come to decisions here. Thank you very much. Oil about to close in a few moments. I want to go to stephen schork, of the schork report. One of my favorite experts. Stephen, here is the thing, we got 503 millionbarrels without the Strategic Petroleum reserve, 604 with it that is longer in a long time. June of 2017, 502 million, even more with the Strategic Petroleum reserve. Why this part. Why has the dam broken today of all days . Clearly charles, weve been in a structural bear market now for the better part of the month following debacle of the opec meeting in early march. So we have a situation where the forward curve has just collapsed. It was collapsing before this. So, for instance, charles, you could buy oil at some point over the last month and sell it 12 months out, guaranty yourself, 20, 30, 40 return. What has happened charles over the last four weeks, every bit of available Storage Capacity, commercial Storage Capacity is in process of being maxed out. So sooner rather than later youre not going to be able to store anymore oil. So clearly we have producing today, even though Oil Production in the United States has dropped 800,000 barrels a day, it needs to drop another Million Barrels a day just to compensate for the loss of demand destruction. So we have no demand. We are producing too much. And probably by the end of next month, if not sooner well not have any place to store this oil. So it is going to happen is, you will have to dumb it on to the market. What we saw particular today, the penultimate contract, the contract for may deliver i are. It expires tomorrow. So clearly someone, someone large came into today still owned way too much may futures contracts and theyre stuck. Theyre trying to get out of the position. So right now on these prints oil today, put it this way, oil on friday settled at 18 a barrel. Today, about ten minutes ago, it traded at negative 40. So if youre a producer, you have got to pay someone 40 a barrel to take the oil away from you. So clearly someone major just blew up today. Whether a bank, hedge fund, major oil company, were watching death after major entity in this market go on in front of our eyes. Charles this is great point you bring up, stephen. A lot are talking about corporate debt, particularly held by some of these Oil Companies. Maybe the exposure to hedge funds this is slippery slope. It is not just the oil industry that is exposed here, well be bracing to find out who the major player is that did blow up. Meantime the idea now, hey, why dont they stop producing . B, who saves this industry . Yeah. Well it is going to be the majors that do survive. Some of the producers are stuck. If youre in canada youre landlocked. You dont have enough Storage Capacity but very difficult for you to schultz down shut down the oil sands production. The canadians are on a difficult road to hoe as are smaller producers here. All of our clients, charles, our clients range from everyone pulling barrels out of the ground, natural gas out of the ground, processing, selling it, hedge funds trading it. We have a nice representative cross breath of the market. My smaller producers they have all shut in. They shut in weeks ago. So youre starting to see it. It is just, there is a lag here and product shutins are not happening fast enough to compensate for the loss of demand. Now, what is going to happen, charles, lets not sugarcoat this. This is not a recession. This is a depression. So there are 22 million americans that lost their job over the last four weeks that translates to 15 million americans who are not driving to work each day. The Federal Reserve of st. Louis is projected upwards of 53 million americans unemployed in the second quarter. That translates, charles into 40 Million People who are not driving to work. So as far as demand goes into the summer where we norm mali see spike in demand, forget about it. Summer will never happen because demand has been killed for the foreseeable future. Were seeing that reflected in the spot market right now. Charles how does it come back though, stephen . Does there have to be major cuts . Do opec and russia have to go back to the drawing board and say 10 million is not enough, we need 30 million . Does the federal government have to get involved . Do they pay producers not to produce . How, whats the Inflection Point . It feels like it has to come from some gigantic entity that can write a huge check. It is more on the demand side. The market is taking care of the supply side of the equation. As we said, u. S. Production is down 800,000 barrels a day over the last two weeks. That has to continue to happen. Certainly with negative spot prices that is going to continue to happen. Saudi and russia will have to continue to pull back. But there is a limit from a engineering, operational standpoint. There is a limit to how much production you are going to shut in. So the answer, charles, has to come from the demand side. When were looking at perpetual unemployment, not just here in the United States of course, this is a Global Economic crisis. So it is not until people come back to work until we see that demand point. And the problem charles, is, is no one, im here in pennsylvania. My governor just put us on house arrest for up until may 8th now. So as long as we cannot get out and work and earn and we keep on getting laid off that Inflection Point, well not reach the Inflection Point until we reintroduce demand in the market. Right now that is the biggest known unknown. Charles another reason to get us back to work. It is. Charles stephen, thank you very much. Really appreciate it. Charles i want to go to Jackie Deangelis for the latest on this crude oil collapse. Jackie. Reporter hey, charles, i never thought i would see the day where oil prices, you are trading negative. Youre basically saying a barrel of oil for delivery today is worthless. That is what the market is saying at this point. There is a couple things to note here. Yes, this is a historic watershed moment but at the same time the contract that were looking at is the current contract. And that is going to expire. If you look at the june contract, i think it is trading around 22. So you can see the months going out, the market seems to think that oil will be worth more because this crisis will be further contained. As your previous guest said, people will start going back to work. That demand picture will come back. What im a little concerned about is how quickly the market thinks that can happen because, as he mentioned there are numerous shutdowns that will extend through may. Even if people start going back to work doing essential job functions, et cetera, they may not want to do the other things that you need to do to have Oil Demand Pick up like travel, like summer vacations, like all of those extra things that go even past just commuting back and forth to work. It is really interesting because when we heard last week that opec, russia, they were willing to make this tremendous cut in terms of production, 20 Million Barrels. You hear people saying it will take 30 Million Barrels. I look at opec production overall at 32 Million Barrels a day, how can opec go from that level to basically zero . It is just not possible and the problem youre having, the reason the contract is trading in negative territory the oil is worthless right now with no demand out there. There is nowhere to put it. The storage costs are very high. So at this point were sort of looking at oil maybe as an Inflection Point here to give us a sense what things will look like over the course of the summer. How bad the third and fourth quarters could be even though the stock market is pricing in the fact there will be this kind of a rebound. There is so much about the coronavirus that we still dont know. We dont know if it is going to subside when the weather gets warmer. We dont know if you find that you have supposed immunity to it, if you can be reinfected again. So these orders of getting back to business, even if slowly might have to go more slow than anybody is anticipating here. Youre seeing that in oil. There is just one final point i want to make. What the market is really worried about when it comes to shale producers and big oil across the board, the fact that you are going to see bankruptcies as a result of this. Youre going to see job losses in the oil patch. And that is going to have a major impact on the u. S. Economy. I mean i cant stress that enough, charles. Charles jackie, thank you very much. I want to bring in one of our favorite oil experts, John Hofmeister who has been in the industry a long time but, john, im sure you have never seen anything like this . No, this is the judgep off the ledge from the 26th floor time in one respect. But in another respect, charles, the Oil Companies take a longterm view all the time. Unless youre a small operator who is living you know, by the loan from the bank on a daytoday basis, but if i speak from the eyes of a major oil company, if youre in the situation like this, you cant simply shut down all your wells without destroying the value of those wells. So what you do is you take it a day at a time. You prioritize. You have a plan a, a plan b, a plan c. And you think about it over the next week, month, quarter, year, and you look at it over a period of time. Theyre not out of cash. The major Oil Companies are not out of cash. There are still, theyre still is consumption. The consumption will determine where the price goes from here. Lord knows what happened today to suddenly go into this negative value own a barrel of oil. It is utter nonsense. It just cant continue because there still is demand. There are still, there is still cargo being hauled. There is still freight being moved. There is still, there is still cars on the highway and there are still petrochemical plants operating, people are still demanding product. Not like were out of business. It is a bad day. Charles no, its not, but, john, even before coronavirus and this crazy oil war with saudi arabia and russia, crude seemed to have trouble. Seemed like it couldnt get its footing. It felt vulnerable almost all year long even as the economy was doing well. Many complain about just being a glut just that even at maximum demand you cant soak the up. Even to your point there will be some demand it will not be anywhere near the max. It is great that exxonmobil can take a one year view but there has to be a large swath of this industry that wonder how they make it from now until friday . Actually it doesnt happen overnight like that in this industry. For whatever reason, there was, you know a price yesterday. There i will was different price tomorrow. The price is really set by traders. The Oil Companies themselves, unless they have a trading organization, are not directly involved in the movement of the molecule. The Oil Companies role is to produce the molecules and they will produce them according to a capital plan they have had locked in for a long time. The traders affect the price on a daytoday, hourtohour, minute to minute basis and they cant find a buyer is what happened. They cant find anybody to buy todays oil, the may contract coming due. There was a information in the paper today about 40 Million Barrels coming from saudi to the u. S. Over the next month or so . Thats a huge overglut of oil but im sure it is all based on prior contracts. So were in, i say today is temporary aberration. That is how i see it. Charles one hell of an aberration. What about speaking of saudi arabia and all this oil on its way . Some folks said maybe d. C. Should get involved, either stop, you know, importing oil, put a tariff on it, pay american producers not to produce oil, put more in the Strategic Petroleum reserve. Of all of these options which one in your mind makes the most sense . Put it in the Strategic Petroleum reserve. We really dont want government involved, im speaking from industry perspective, we dont want government deciding how much oil is coming into the country on a given stay or paying people to keep oil in the ground. That is an interference and insertion that is just totally inappropriate. Government doesnt know how Oil Companies operate. Theyre not supposed to. I think that is just overreach. Putting oil in a Strategic Petroleum reserve, buying it at a low price, that is wise, that is good for taxpayers. Why the democrats dont approve of doing that is because of the visceral antioil relationship that the industries has with the democrats but theyre shorting the american taxpayer by not buying cheap oil to put in the strategic reserve. It makes no sense at all from a pragmatic standpoint. Charles youre 1000 right. I got a lot of calls right before the show came on, shows and emails, people are looking to be opportunistic here. They want to know which contract to buy, what stocks to buy. I looked at the Balance Sheet of some of these Permian Basin plays into the year, some of my favorite names like concho, pioneer i think will be okay but, it does feel like maybe they may need some sort of help. Everyones going to d. C. , hat in hand these days. Could smaller producers, not real tiny ones, ones who made a name for themselves should they be bailed out at least temporarily . I think bankruptcy is the better course, really. Bailing them out is a political question that will never get answered by this congress because the inability, of the congress to make tough decisions, particularly relating to the oil industry. They will debate it for months. Meanwhile what are the Companies Going to do . Bankruptcy protects companies. It doesnt mean they all go bellyup. It means they reorganize. There are too many, ive been saying for two years, charles, there is too many operators operating with negative cash in the oil patch in the u. S. And yet the banks until, say the last four to six months have been still giving them more money, private equity folks got in to flip Oil Companies to make a lot of money. They got burned. They got burned badly, frankly from about 2018 onward the world has been producing at a rate greater than the demand growth. That is always dangerous from a oil equalibrium standpoint so this has been a Long Time Coming and today it went over niagra falls. Charles John Hofmeister. Thank you so much for your expertise and, just walking us through this, it made so much sense. We really appreciate it. Thank you. Folks, there is a new study out of harvard on coronavirus testing saying right now well need to at least triple if we want to reopen this economy. This coming as a Bipartisan Group of lawmakers unveiled their own plan to relaunch this economy including increasing testing, Economic Relief for businesses, help with mortgages as well as rent. Those are some of their proposals. I want to bring in fox news medical contributor and author of the brand new book, make america healthy again. Dr. Nicole saphier joins me right now. Dr. Saphier you lived this, talked it sharpened pencil more than once. Everyone wants to get back to work. No one is fighting per se because of the economic damage but it all seems to center around testing, testing and testing. Charles, thanks for having me on. I think i said several months ago that i believed the longterm economic consequences will far outlast that of the virus itself. That is why it is so crucial to get the amount of testing supplies that we can right now, because we need to get america back to work. The only way to do that unfortunately is to get a realistic picture of who is infected so that can help us not only know who is infected but Contract Trace. We cant just open the doors to let everybody go back to work if we dont have the ability to freely test individuals. I can tell you in new jersey where you and i both live, it has one of the highest positive rates of testing being done. That tells me not enough testing is being done in new jersey. Majority of people are being or large amount of people are testing positive, we need to test a lot more people. Not just the people that are symptomatic. Until we have a clear idea and freely accessible testing, very cautious about how quickly we open things back up. Charles right. That being said, charles, there is also massive consequences to keeping everybody locked inside. Not only the economic fall out that you have been talking about your entire program but what about the depression rates, anxiety rates of people staying at home . Unemployment is directly related to increased Drug Overdose deaths as well as suicides. So it is imperative that we get people back to work in overall healthier place. Charles real quick, dr. Saphier, we had a lot of breaking news, in south korea, not only are they going back to work, theyre going on picnics. It is like, it is like, but, they say all with the Contact Tracing but they learned the lessons from the middle east respiratory syndrome because they were the hardest hit country outside of the middle east. They set up infrastructure for it. How important is that and does it infringe on our rights. South korea, taiwan, all the other places they have ptsd from the last sars epidemic. They have Contact Tracing and testing right away. That is one thing we were slow on here but when we talk about Contact Tracing, you know what theyre doing, monitoring people through the cell phones and gps. A lot of people in the United States really believe the right to privacy. So it is a final balance how would we Contract Trace people. We could open up sooner if we knew we could test people freely who came in with symptoms and immediately contact the people they had been in contact with the last several days up to last five days. If we do that all those people tested potentially quarantined we would open up things faster. That debate will continue on whether infringing on privacy or not. Charles dr. Nick sole sapphire, the book is make america healthy again. What a time for a book like that. Cant wait to read it, have other folks read it as well. See you real soon. The dow and s p is lower. They tried, nasdaq was a little bit higher. All these entities, equities are pulling down because of oil which is having a session like it has never had before. At one point the may contract was off more than 300 points, 300 rather. Bring in now to talk about where we could be going with this market, not just oil but also equities. Er shares ceo and ceo joel shulman. Joel, first your thoughts what happened in the oil patch today. Clearly will have devastating effect from many companies. Many of these Oil Companies are having high dividend yields but they will not be able to make them. Moreover many will fall because they dont have the wherewithal to pay back their obligations. Oil will have reverberating effect through the markets. There will be some beneficiaries who are oil buyers but there are not enough of those right now to really make a difference. Jo energy itself as a part of the s p is down three three or t was up 10 on friday. What exactly are investors looking at . Where is this disconnect and the slippery slope, are we ignoring the sort of risky deaths a lot of smaller independent Oil Companies took, the potential for this massive corporate default becoming something of a domino . Because a lot of experts called for this for a long time saying the first domino was high corporate debt, particularly some higher yielding riskier debt would on the phone yeah, theres no question. Maybe Oil Companies have been fallen angels so for your viewers, these are Investment Grade securities that have be been fallen to junk rate. The difference between the treasury and corporate issuer expands quite a bit with increasing levels of debt. So now what we have seen, youre right, theyre the very first domino in this wave. We have seen Energy Companies dropping appreciably, 70 , 80 , 90 and many will default. We are seeing, because of the Balance Sheets are so weak and because their debt clocks are now rising and these debt obligations, these fixed income obligations coming due, many of them just wont make it. They dont have the capacity to meet their debt obligations, so its just going to continue to c compound. Charles meantime, we saw a lot of folks betting on order even though west texas intermediate was off from friday. We also got word that the short positions are as large as possible. For folks out there, this is essentially when investors are betting for stocks to go down. Yet when its this big, often, we have got a screen up right now, the most popular short positions, all green. So are you contrarian when it comes to this, maybe there can be so much shorting because they have to buy these stocks at some point . On the phone on friday, we brought a great entrepreneurial Growth Company out of boston, wayfair, which many of your viewers may know. Its an Online Furniture sales company. Theres an 8. 5 billion Company Growing revenue by 35 per year. This is a company that has about 24 billion shares short. They only trade about 4. 5 million shares per day. It takes six days plus for the shorts to cover. What that means if any news comes out thats at all favorable to this company, the stocks going to go up and the shorts have to cover. That creates a short squeeze. If your viewers are looking at percentage of shares outstanding that are short, this is one of the highest Percentage Companies out there. Its got about 41. 7 shares are short and over six days to cover. With the work from Home Movement going on, the fact the founders own 2. 6 billion in stock and arent selling it, they are holding about 25 , this is charles yeah. To your point, wayfair is one of the biggest winners today, 49 short. There have been a lot of short squeezes in this stock in the past. You are absolutely right i think everyone should make a list of these names. Meantime, i do want to bring into the conversation cheryl casone. Equities holding up pretty good considering the carnage that we are seeing in oil. Cheryl yeah. Its funny because i think you mentioned this earlier, when the market really started to go south end of february, beginning of march, it was of course the fight between the saudis and russians. I was just looking at a jefftal issue of storage. When you have this glut of oil out there, you have President Trump talking about opening up the spr so domestic Oil Companies can store their crude, that brings up what companies are available and out there, maybe investment companies, that are involved in the storage business. Do you start to see tankers start to really rally up and start to really, you know, take that crude and contain it. Maybe thats your rainy day storage. Look, remember, this is a futures contract. Oil is a futures contract we are looking at which means the price of oil right now is different from what the future price prediction is going to be. You mentioned equities in the market. We just had halliburton earnings come out before the bell this morning. As we start to move into the major Energy Producers in this country, exxon, occi, chevron, anadarko, for instance, when those numbers start to come out, the quarterly reports, they will take on a whole new level of interest and meaning for investors. Forget about talking about q1 being not so great, the numbers dont mean anything. These oil Company Reports are going to mean a lot when they start to talk and address the crash we are seeing today. Charles to your point, tankers up 16 right now. Dhc holdings up 11 . Scorpio tankers up 16 . Yeah. The tanker stocks are certainly moving because theyve got to be stored somewhere. Joel, i will bring you back in. The rally, the rebound from those march 23rd lows, absolutely phenomenal. Really has been just amazing. But some people wonder if its too much, too soon. On the phone i dont really think so, for some of the companies. We have been investing throughout our history in Entrepreneurial Companies. Across the board, the entrepreneurial Growth Companies [ inaudible ] up 5 year to date, the s p is down 11 . Its happening in small cap, nonu. S. And u. S. Small cap. Its happening across the board. You are seeing great Companies Like zoom, netflix, nvidia, amazon, all entrepreneurial Growth Companies and i think many of the companies, these Entrepreneurial Companies are pivoting very well during these markets and they are repositioning to take advantage of this and you will find historically, many of your viewers may not know this, historically many great Entrepreneurial Companies emerge during economic tough times, like square, pinterest charles that was the case during the great depression. A lot of industries and lot of companies we know today out of the great depression. We hope we dont have to go into a great depression. Cheryl, joel, thank you both very, very much. We are at the lows of the session as i hand it off to my friend liz claman. Liz those tankers, i think you are absolutely right, those are at a real premium. Its unbelievable whats happening there. It is historic crude crash that is sending shock waves through the economy and no doubt will, when all is said and done, have blown out at least one or maybe more u. S. Oil trading firms. At this hour, the u. S. Benchmark, wti, west texas intermediate, is trading right now negative. Negative 26. 58. Down 44. This is the aftermarket but just 30 minutes ago, it settled at negative 37. 63 per barrel, down
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