Night because i cant forget welcome to squawk alley for a wednesday morning im Carl Quintanilla with jon fortt, Julia Boorstin joins us for the hour for which were appreciative interview with intel ceo bob swan later this hour later exclusive with nfl commissioner Roger Goodell a lot to get to. Well start with the s p and nasdaq notching another record intraday high. Got 12k on the comp. Former ceo of twitter now general parter in of owen advisers Dick Costello is with us great to kick off the morning with you. Great to hear you all i dont see you. Julia and i did our first live tv interview together back in 2009 when i joined twitter so to julia. Great to hear you. Thats worth celebrating, dick wow. Takes us all back. Youve had some i always tease you about Capital Management and you had some great tips in recent months that the mongo dbs of the world and theyve worked how long do you think theyre going to continue to work . Yeah. Its a great question. I got to tell you, when i was on
Peter navarro meant to say on fox last night. There was a little confusion. I think that he was pretty definitive to say it was dead, the president was pretty definitive in saying the trade deal is on who would ever think that this would happen, good news out of europe, pmis are strong, they are inflating things in their economy like we are. I also think there might have been a short squeeze those of us who watched when navarro said what he said the market plummeted and i think overnight traders said its going to open down badly im going to get short and they got whipsawed because you didnt think navarro could be reversed as quickly as he was given the fact he is a close confidant of the president. Almost exactly what art cashin is saying this morning. Whipsaw resulted in a good deal of short covering. He says the bulls may now reassert control he says they need to take the dow up by more than 450. The bulls are when you watch the market ahead of time you see so many stocks going up fo
Furloughs taking place the other thing to keep an eye on is the high yield bond etf, hyg, and also the junk etf, spider, bloomberg, bark clays, hy bond, jnk were seeing those jump because of some of these fed actions which include now basically buying into and helping support u. S. High yield corporate bonds, so really talk about taking all the tools out of the chest its cause something strategists to now circulate notes today asking what could potentially be next for the fed is it going to be Something Like buying into actual equities . Guys carl . We are glad back to have on our air art cashin, director of floor operations at ubs and bob pisani art, we have missed your guidance and wisdom over the past few weeks as you recover from an accident, but its great to have you back let me just start off by asking you about this historic fed move and as you said in one of your notes this morning with powell on the tape, the game is now on the table. What do you mean well, its, you know, the
Governments around the world pump cash into the Financial System the president promised a large stimulus package, including direct payments to every american and boeing and u. S. Airlines, a Financial Aid package for billions of dollars as the treasury secretary called the situation worse than 9 11. Steve liesman has the latest from the fed Kayla Tausche is tracking the fed response from washington much more from her as you just heard. Lets start with you, mike, on the key market levels. We just bounced off a key market level, wilf s p 500. We closed yesterday about 1 above that december 2018 closing low about 2351 we spent very little time under the 2500 level now what this is, i would call it a very modest bounce, given the destruction that we saw in recent days. I think you can make the can case between thursday to monday you had a multistage capitulation process we should be bouncing on a tuesday after a washout monday right now looks okay but not so decisive were down 30 from the
Romain, stocks rising and volatility dropping, so why now . Romaine the good thing, if you are looking for a Silver Lining here is we did not have huge price swings. We had up and down days with swings of 4 or more, something that has never happened since the great depression, so a day like today where we only lived half of a percentage point is considered to be a relief for investors. We saw volatility measures like the vix and volatility measures on other risk assets come down a little bit. They are still elevated on a historical basis, but by not having these swings it gives investors a chance to parse what the value of things really are, entryybe try to find an point. We saw sustained buying in the names that we used to see in the oldgrowth days. Some encouraging signs. Not a monster day. Not close to erasing the losses we have had, but a little bit encouraging today. Emily in the meantime, we are getting breaking news out of the fed, the fed saying they have seen an increase at th