And volatile session the. 5 rate cut by the fed morning doing little to calm markets. Maybe exj rating the selling dow giving up half of mondays gapes at the end of the day down 785. Keep this in mind. The dow is now down 3,500 points from highs of less than a month ago. Stocks of course a story but the big story of the day was the bond market. Holy smokes. Bond yields continuing to fall on the 10year, in fact the freefall at 2 00 p. M. Eastern time at 0. 99 . The drawing is not good but you get the point. Under 1 on the benchmark 10year note we have never seen that before buyers not just coming into bonds, also flocked into gold and the gold mining stocks the precious metal up 3 the miners even more the gdx, a gold mining dpks index up 5 today. If you tuned in last night we hope you did everybody around the desk said they were not buying into the gains. In fact, guy adami i believe you said well rally to the 3,500 on the s p 500 on fail you nailed it what do you think of the markets now and more importantly what do you think of what the fed did. I appreciate that that was sort of a math problem and we put it out in terms of where it could trade up to and fail around the deck we were collectively skeptical and ill say this. And nathan has been on this, yields have been going lower long before coronvirus was a thing. Gold higher long before coronvirus was the thing this sped up the move. We also said that at a certain point in the yield curve, 10year yields you hit the point of diminishing marginal returns in terms of what it means for the Broader Market i thought that was around 1. 4 in the 10year that proved to be somewhat correct in terms of the fed we only have an hour and i can rail against them for five. They have missed the boat and become beholden to the market. And now the market is completely in charge. Its sort of a scary thingtim, what the fed did exacerbating the selling, go home tonight and say i stocked up on ammunition and fire extinguishers. It didnt help confidence the communicate kay from Central Banks was amorphic and nonscript but showed coordination and ready to act. When you cut at 50 with no fiscal behind it, no plan. Some sense and see we are trying to play the psychological game with the market, the market that knows and expects and needs psychology from the fed totally back fired for to get any followthrough right now thats going to make a difference for the market you need fiscal packages what china came out with a couple days 1. 2 of gdp begins to make sense, even though thats just the beginning. When you think about the market today and we talked with the bond market for as much as equities have done the 30day move from the 10year to from 1. 807 to where we are today is historic by me measure and you have to say equities are away way expensive with bonds with leaching aside how we fal value stocks or whats happened in the bond market is off side appear versely low. Its off sides, the fed lost last summer when they decided to start cutting rates the first time in 10years with oat stocks at alltime highs and the Trump Administration talking about our solid footing for the economy. Whatever they call it, the midcycle adjustment, thats where they lost credibility. I know guy thinks they lost it a long time ago. But there was no reason for that and that fueled the lateyear stock rally we had coupled with the repoe operations. Qe 4. What i find interesting im not panicked about the coronvirus you think about whats going on, the market was correcting one way or the another but the market shouldnt have been close to 3,400 in the s p 500. Where do we close today . Right at 3,000 thats where the s p 500 broke out in late october when the fed started expanding the Balance Sheet and after they had the benefit of three consecutive 25 basis points rate cuts one other point, whatever you want to call it, emergency, preemptive the rate cuts my history watching this and watching stock markets you go back to 2001, when they had surprise rate cuts, well you know, the stock market got cut in half in 2001 to the lows in 2002 and then you go back to 2007, 2008 when they started doing surprise emergency rate cuts in between meetings, and again, the s p 500 got cut in half. The market does not love these sorts of things. I think that it was pretty well telegraphed. With all due respect to everybody, not trying to insult anybody on this screen or any others kept calling it a surprise rate cuts as thats ma larky kevin flynn is our producer who we talked about kevin i love you brother which is in wsh is that the cme futures showed 100 chance of intermediate rate cut sunday night io tweet to do out was yesterday the fed gas on the fire, karen and thats all were getting . I dont know if thats all we get. On friday. You should have hit him with a bobby. Well, bobby. I feel badly for Jerome Powell everybody sort of, you know, telling him he is doing a bad job. Let me just sort of add to i dont agree with what he did why not. Because, you cant cure the flu with a rate cut, right thats what we have. When when in 1998 when the russian debt crisis happened and longterm capital is blowing up that was completely a financial crisis that rate cut did solve that crisis in is a very different crisis. This is the consumer very nervous, right, not only about health but also about businesses and the 50 basis rate cut i dont know why you need to do it now. Why not wait. Its not preemptive and just so to be clear, we talked about the fed in the last six months where were they getting ahead of the mechanic, the curve wsh were they going 50 instead of 25 . We were talking about that late september into october this is reactive this is chasing your tail. And this is a fed that at this point seriously i mean, you know, bank of australia went 25 bps left them with 25 bps. I know there are more teals in the tool box but zero Interest Rates are here and this is not solving anything. I kind of disagree with you guys like i said i thought last summers rate cuts were a problem and people shfb upset. If you think about our economy on 70 is the consumer and you think about the potential for economic shocks, i mean this is the sort of stuff they should get in front of in my opinion because when you think. Because they when you go back to and think about the olden times, the two times we described in 01 to 02 and 08. When you think about 2001 when they leaned on rates going to zero, nobody knew what the war on terror was looking like and nobody knew what the financial crisis looked like but we know the worstcase scenario was bad no one knows how it plays out. I dont think its that bad. But the reaction is crazy. Thats the thing you think about how much debt is all over theis. I want to go back to my friend kevin. Thank you, rob. No worries. Is this a crisis you said crisis. Is it. Is it i think is a crisis i dont know what the definition means. I think it is of deep concern that the dishneau dsh that the way we go about our daily business in the United States is changing, right . We all know of a Conference Cancelled or a trip theyre not taking or just pulling back, or buying extra supplies. Those two things. But to tims point, the monetary and fiscal are different, right. Yes. Lets say im supposed to travel this we could true story lets say i change my mind is dog into the kennel if we dont travel, the dog doesnt go in the kennel process the kennel other than doesnt get the revenue. That lower rate isnt helping the Small Businesses around the country. I think where we got to help me dan if this is what you were talking about what you faced in the fall in qe 4 was growth and Recession Risk. And markets were not pricing that but the s p went on the 19 run which led you to dislocation over the last six investigationo sessions that set this up there is no question that even before that, even before we signed phase one of whatever trade deal we did, the market was concerned about Global Growth and the fragility of the economic recovery that frankly he dont know where it is. This is about Recession Risk this is about ultimately pricing where equities should be and to me then you get into the technicals, then you get into markets dont trade up or town 5 when markets are healthy on any given day and have the reaction they have and the fed case chase the 50 basis points cuts without being alarmist if you look at stocks and s p, technicals, just the guide posting im not a technical guy but i can tell you 285 a where we challenged yesterday, the beginning of the run back in october 3rd that took you to the highs, we have to get back there. And if you look we closed near the lows. Thats a great level, tim, im glad you bring it up because its the level is the 50 retracement of the december 2019 low which we remember, 2350 or thereabouts or the recent high makes a lot of sense and i agree. In my opinion, again the Bigger Picture is none of the central banker have the at the merit to allow thedown turn to happen. At the merit is an interesting of choice of words some use others. If this was a different show i could use the different word trust me, i would. Down turns are a natural part of the cycle. You need them to happen. You have to allow it to happen. Is there anything natural about thousand point moves up or town four of the last five days or whatever its been . When its going up 200 points a day for weeks on end with nothing structurally behind it we dont talk about that the we say the fundamental. We have talked about it the etf. You know what im saying in general. Its just as ridiculous on the way up as it is on the way town. We talk about it all the the time markets go down faster, allow thedown turns to happen and you wouldnt have the moves to this magnitude ill just the words. Known has the stones to allow it to happen. Dan why didnt the market tried to react when the fed came out this morning. Its the lack of visibility right now. I would tell you i dont really believe this is a Health Crisis right now when you think about the amount of cases and how many deaths its not a Health Crisis. Its a financial crisis. Thats whats going on when you see headlines that millions the headline on february 22nd on bloomberg that millions of Financial Firms in china could go under, could go bankrupts with the banks dont act. Two weeks ago. Now i heard youll day today about Small Businesses to the point you just made here in the u. S. What sort of bailout do they need we heard from the administration they might pay hospitals and insurance companies. But the fiscal stimulus. I understand that but my point and see were talking about talking about everything now youre not throwing that you know at a you know what i mean this is not a humane thing this is a financial crisis. There is been too much debt all over the planet. We know its a rolling financial crisis here in the u. S. In 2008 and 2009 obviously the sovereign debt crisis and everybody waiting for it to blow in china. And this couldnt have started in a worse place on the planet. Lets keep it going and bring in another voice the bond bombshells well call it truly remarkable. I want to put it in context for you. A year and a half ago the 10year yield was 3. 1 in other words, one of the most widely traded market instruments in the world that is supposed to be known for stability has seen a 70 drop in yield in 18 months lending rates like mortgages and car loans may go down. Good news but could it signal something more sinister or worrisome lets bring in jim bianco of bianco research. Truly remarkable move. Does the fed know something we dont . No, the fed knows nothing more than you or i no. Jay powell is no more of a viralologyologist than i am and i know nothing about that. But im pushing back on the conversation and arguing the fed did the right thing. What they know is the market riced in a rate cut. I argued it would happen yesterday and that the market was demanding this rate cut because it saw problems. Today which didnt get widely reported, remember the old repoe support we were talking about. Broke the records today. Broke the records from december 31st the street demanded a record amount of bids submitted to fed op repoe they didnt get it because the fed is reducing the size but there is something going going on there causing shortterm rates starting yesterday to plunge. And with the market demanding the rate cuts it was sensing the fed was get going. They had to move and had to move aggressively. Again, the repoe market, jim i know its boring, the sbeshl plumbing of the market we talked about it on the program. Its confusing probably for people even do it for a living but what does that tell you about what wall street might be thinking well, first of all its a surprise we didnt expect it on march 3rd of anything elks but on the heels of last week it suggests a liquidity problem beginning in the Financial System its being satisfied by what the fed is offering them they are demanding it so thats worrisome. We have to see tomorrow and the next day whether or not it continues. But thats one of the reasons, the fed i think moves and thats because the market was price going in quick word about pricing in. As of tonight, the market is pricing in another 50 basis points on march 18th down to 5 8 . If the mechanic is pricing in 50 basis points or for more march 18th theyll cut to zero in two weeks. Wont even waste the time in the inner step. I hear you on the repoe and we have been talking about it a long time. Ill push back and say if the fed had come out and said there is a Problematic Bank or institution out there creating the problem, this is how we need to address it these are the measuring were taking instead of this is just the normal urs could of business or that nonsense because it is nonsense, the market would have taken it better than it currently is your thoughts. I agree with you totally when we look at the numbers every morning and go wow, look at the number no color why is the number way up there, larger than it was on december 31st no color it leaves to you fill in the gaps with your imagination on a the date after the market had one of the worst weeks ever. That doesnt help the situation. Then you add in the market was pricing in 50 basis points for an intermediate move thats why i think the fed had to do what they did. Instead your arguments but they cant print a vaccine, cant cause other things but within their world appear what they look at, this was the right move for them to do. And dont be surprised if you see an even more aggressive move in two weeks if the market dhands it like it is right now. Jim, thank you very much we appreciate your time. Tim, if jim is right were going to the same level of fed funds that we had pretty much at the peak of the financial crisis. I just think that and jim brings up a lot of technical stuff we are talking about, the roe poe market ry poe was at 180 which means somewhat bought out the treasury conserve curve i get that we need fiscal to counter this obviously fiscal gets incredibly political. You think the fed is political obviously fiscal policy gets into something it comes down to we created an environment where the market has been pushing the fed around now for years. At some point you get to the place im not sure todays reaction was the right one but leaching that aside, what were talking about for stocks and companies ultimately comes down to epa valuing based upon Interest Rates and eps guidance and outlook that changed dramatically i dont think despite the fact that we were tempered and the market is calling between 5 and 10 . Before this came out we hear from every ceo that this is a time to put back and the eps estimates have to come down dramatically. We wout the monetary side today. And according to jim and others we get more. On march 18th. If we get a fiscal package to tim ace points, maybe tax cuts, maybe direct Cash Payments to Small Businesses, does that help the equity market. Okay socialize all the losses every time it didnt help in 08 and didnt help in 01 time will help thats whats going to happen. Time has to elapse we need to work on excesses. Again i go back do to they made the mistake . 2009 july 31st when they cut rates the first time in ten years and did 325 basis points cuts and then start qe. They made the mistake in 2012 or 13 when extraordinary fed policy was taken out. Karen, lets go forward, does it help dancing with the stars if we get more. Were missing a giant piece of information which is how the spread of the coronvirus ee involves in the United States . Are we facing a tsunami if if thats the case we got to do more. Coming up much more on the selloff, the down down nearly 800 points Morgan Stanley joins us why he says the selling just be Getting Started and what the bond market means for these bank stocks. And if you cant sit in front of the tv all day long. Were there too. Go to the app, wind chill watch or listen live at any time were back right after this. You ever get the urge to go a little crazy . You know what im talking about, right karen . Huh . You wanna let yourself woah, but you cant do it here. Or here. It hurts more when you fight it. But totally cool here. Woah and here. Woaaaahh oh yeah. Woah, kid. She gets it. [ roars ] woah get it all out. So when youre ready to let yourself woah, theres only one place to go. Universal, baby 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 ] it was another historic day on wall street, stocks sank, the dow falling near 8 hup points, the 10year yield fell below 1 . There now at 0. 999 . That hit bank stocks hard since the lower rates could hurt the profitability of vest investment and loan portfolios, the worst day for regional banks, kre etf down 4 . Bigger names not spared. Morgan stanley, citigroup, jp morgan chase, you name it, down today. Karen we understand that lower rates hurt the net margin. Was this an overreaction because the idea of lower rates is that they spur lending which would be good for business sno. I think there is few things will be good if we refie that will be eyed good. Activity on the trading desk thats good. But the Assets Management business thats not as good. One interesting thing happened otto a lot of times we talked about the 2year 10year spread you would think it would flatten out. If you look at the 2year and 10year spread since the beginning of the year its actually near the highs. Normally still low overall you know in the scheme of history. Normally you would think that this would be a flattening curve. Its not there is this backwardation in rates. What does that mean for the we got a lot of new viewers not daily viewers what is a steepening offing of the yield curve. Steepening is good with that means people think the economy picks up in the future and rates will be higher its got a long way to go to get really steep but thats unusual and the banks are getting crushed. Im long banks, i like banks i think the value is here. The concern is if the economy slows down that is bad for banks. And one thing banks have had a tailwind for years that could crack is credit quality. Credit quality has been outstanding for a long time. That would be sort of that crack would be a painful one we havent seen it yet. For me theyve always i dont pretend to understand the banks. I think they are utilities in the world and best days are behind in 08 and 09. But they are great trading vehicles for example, citi bank when it trades at 85 or thereabouts of book value over the last year and a half its been a screaming buy. 85 of book value here is 60. Now when it trades up to tangible book which is 82 in this environment thats where within its a sell we talked about that a while you are getting dangerously close though buying opportunity in citi. And Morgan Stanley quickly dsh i know because we talked about it at the same time. You have a major double top at the 57 level from march of 2018 and if they didnt top tick the etrade thing its hard to say who did. But it has downside to 40. I think karen is nailing the real issue for banks is Corporate Funding and the cost of credit and credit spreads while you requesto can look at h jchlt yg and say under control there is no question that the scare we are talking about where credit gets more expensive and just because the 10year goes down to 907 basis points doesnt mean someone is getting a mortgage mat 1. 10. And banks have been more restrictive in environments like this whether the government tells them to be or not and whether its more profitable as karen pointed out you are at crushed also today was the asset manager, the ameriprize financials guy mentioned Morgan Stanley. We have seen this as every market top you seen goofy stuff efrmts tried buying for 13 billion. A long way to go but if things stay one of the most ill timed deals of all time. More fast money after the break. Here is some of what we have on tap for you. The fed surprised moves sending stocks in a roller coaster tuesday. But was there more behind the cut than coronvirus fears . And later one bright spot in the markets today, gold miners but mr. The sector keep it shine h weave answers. We have that and a lot more when fast money returns you make everything. Groovy. Done yet . Yeah, yeah, sorry, sorry. You sure . Hmm. Mmm. Come on, come on, wild thing. If you ride, you get it. Geico motorcycle. Fifteen minutes could save you fifteen percent or more. There has never been to have a favorite food. With new grubhub plus you get unlimited free delivery and cashback rewards for ordering noodles, and noodles. And noodles. And noodles. Grubhub plus. Free delivery, cash back, and noodles. Welcome back we have a news alert from United Airlines phil lebeau has the story from ohare phil. Brian, united abrams joining jet line and alaska waiving ticket fees for bought between now and march 31st to any destination and fair class but only for tickets bought between now and march 31st one other note look behind me. This is 4 30 in the afternoon. Here at ohare i fly out of here all the time in fact im getting on a fright in a little bit. For this time of day, guys this is light i know its a tuesday. I know its not the holiday was a crush of people. But it feels light this is an indication you are not seeing as many people fly as we usually do. Im actually coming to chicago on saturday. And i booked a ticket yesterday because my Oil Conference was cancelled. You are looking in the seat maps and there is a lot of orange if you fly united you know that orange means the seat is open. I just did the same thing on all the flights i have scheduled over the next three, four weeks seats are wide open. That may fill in a bit but we both know what we hear from people they are not making as many flights. Sort of ironic because if you are worried about the virus i assume youd want to fly on a half empty plane, phil but maybe thats just me phil, thank you very much. We appreciate it look forward to hearing how crowd the plane is but the airlines have gotten walloped American Airlines taken it the hardest down 32 in two weeks. Is there any value there. Valuationation,wise yeah but if everybody makes the conclusion you came to a that they want to be in the full plane its a full plane if you think about it. Get my point. Tim brought it up the valuation the best out there is Delta Airlines 45 is a recent low Double Bottom then you saw Warren Buffett disclose a million share stake not big for him but noteworthy you break 45 you have to ask whats the next level and thats happening with the Airline Stocks its not that i dont want to travel just that some of the things i traveled for are cancelled im not just getting on the plane going to chicago for s and g. Kudos to united for do that they have no choice okay. What theyre saying is we anticipate a lot of people are going to book and cancel united has no choice not only to waive cancel fees but no choice but to cut prices this happens to airlines all the time and the discounting mechanism that is the market if you look at the shares on the airlines, market almost perfectly efficient in terms of what it did each year. Delta was down two, the worst of the worst down six thats the leverage they have financially and from an operations perspective i think the markets mailed this. And if you listen to the street and hunter k. Wolf is one of the best thats the ratio he downgraded the stocks. American gets downgraded to a three factor of what delta does on eps and whats the market has done. Lets turn to the macro markets, the dow ended down 800 points yields on bond sank wloe 1 on the 10year. Oil rose but Oil Stocks Fell bizarrely. Crazy times. But the key question is this, is the Market Pricing in a recession or simply overreacting to an irrational human fear of something we dont understand, the coronvirus lets bring in mike wilson. Chief equity strategistist at Morgan Stanley i know its impossible to gauge. We appreciate you joining us has the stock market overreacted . Well, no, i think we have to acknowledge that i think whats going on today is just a continuation of the correction that began actually two years ago. And i was listening to some of what you were saying at the beginning of the show. I agree with a lot of that with the Fourth Quarter rally was fawn sense it was liquidity induced. There was hope that growth bottomed and we were looking forward to Something Better in 2020 from a growth standpoint but the moves we saw were unjustified by the fundamentals. And weve been expecting that that was an overshoot. We didnt know when it was going to recorrect with you we think this is overdue. And the reality is that on the virus itself i mean it was that or something else. Obviously this is more scary for markets thats why its more violent. I think whats going on is this is the fourth shock we have had now to the economy in the last couple of years. The first one being the fiscal stimulus which caused cost problems and margin issues which youve been writing about two years and thats still a headwind the second thing is the fed raised rates a lot in 2018 hit a full rate hiking cycle thats still having an negative impact. The third shock was tafrz. But we have a phase one trade deal but the reality is we have existing tariffs and now a virus, a direct, you know, concern for the u. S. Consumer who has been the lynch pin for the u. S. Economy i think its right that the market is starting to price in recession. The bond market has been telling this a long type cyclicals have been yun performed and weve been bullish on bonds and utilities because we thought rates went lower. But the move today is startling we never thought wed be at 1 but it makes sense and the question we have to ask is how much recession has been priced and we think a good chunk has been priced but until there is certainty about how it resolves i think we remain under pressure. Mike, its dan, quick question on valuation obviously last year there was a multiple expansion, 30 up in the s p 500. No Earnings Growth, this year the s p now down 7 and the likelihood is we wont see a lot of growth if any where is the valuation level you are steering clients towards not knowing there is visibility on the s p earnings but relative to high Single Digits just a month and a half ago. We had a more bearish view on earnings even before the virus we have been looking for flat Earnings Growth in year because of the margin pressure and lingering effects from tariffs but now thats goot got downward priz to it maybe slightly negatives. The skens sus plus 7 you think of the 10 downside to the sconce us number the market is discounting that thats why multipling came in with rates as low as they are and the equity risk premium as high as weve seen since last summer or 2009. But when rates get this low you might argue the equity risk premium goes up here higher. With rates at 1 what toes that say about the longer term future and the market struggles until real rates get back to zero. What am i saying i think were at fair value today. I think this is actually the markets discount a lot of bad news assuming rates normalize. But if they dont normalize i would suggest we could go down another 10 or so. Mike, its karen. Let me ask you something if if you think we are on the cusp of recession and you have to be invested what are you telling clients where to be, utilities, what are the most defensive things. We have been there and those are expensive. I think the market moved well heyde. Its been preparing for this for a while. Once again i think the increasing shocks have been happening a while. And i think the fed last summer i dont think those were insurance cuts that was the beginning of the rate cutting cycle and now we are in the second phase of that what should clients and investors do i think the biggest risk is in the high multiple Growth Stocks overowned and overloved because they are not pricing any kind of Recession Risk and look thats on our call to be clear we are not saying a definite recession but the earnings have to come down for alls companies those are the areas you need to avoid more than worrying about hiding out and i think what this is an opportunity to upgrade the portfolio there are other things gone on sale and weve been trying to do that on the focused list buying high quality stocks coming in 20 or so. You should do upgrade the portfolio into the decline because we dont know where it ends. Mike give us two or three names. Thats interesting. What are the highest quality names you want to buy on sale. Something we added this week was master card, we added that to the model portfolio with with that making sense. Its a growth stock and overowned but they have a great Business Model but it rarely goes on sale and there are examples like that making sense the other side of the equation is looking at things cyclically beat up. Banks, they have been destroyed and probably will be more pressure but bhaengs and maybe some of the materials and energy and things because on the other side of this if we have a recession there will abrebound were not secular bears we think we aremanaging through this at some point thats been selling off off two or three years there are bargains in the cyclical area you should start to to take a hard look at here. Mike, you think the snapback can be violent like we saw yesterday . Well, i think thats a classic bear market valuey type action thats the stuff i dont want to see. Id rather see us stabilize, find a level you mentioned 2850 that was a level we published last week where we thought it would hold i would say id like to see basing out volatility coming down as opposed to this whip saw up a thousand down a thousand thats not healthy. Mike wilson Morgan Stanley no its not healthy thank you for for joining pause healthy dose of reality there. Did anybody around the table buy anything today volatility. No. Puts . Listen here is the thing what mike said there is going to be opportunities because of this volatility i think you have to pay attention. New york times took down the advertising revenue for the quarter. How do you extrapolate. Factual basis closed down 5. 5 petros they get 95 of the sales from advertising google havent pulled guidance yet you have to put stuff loath its a mosaic things will be ugly but the stuff you love. Get the smopg list. We will say we did nibble on a couple of things for clients. The discipline ive been saying i was saying friday at some point you want to except in i think casinos are cheap. You had a case where there are names we have been waiting to come down to a someplace i also hate buying on a fed day. We had a bit of both after the fed move it was like stand back and weve alall said i ill remind you of 2011 you had the massive drawdown then the mechanic did this chopped around in plus and minus 5 moves almost a month. I think were in a difficult period here. Okay. Thank you very much. All right up next are people buying homes simply because Interest Rates are low the market seems to inthk so but with era are they get going wrong in stick around. Were going to find out. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. It is already working voMike Bloomberg has a recordgue of doing something. As mayor, he protected womens reproductive rights. Expanded Health Coverage to 700,000 new yorkers. And decreased infantmortality rates to historic lows. As president , hell build on obamacare, cap medical costs, and will always protect a womans right to choose. Mike bloomberg a record on Health Care Nobody can argue about. Mike im Mike Bloomberg and i approve this message. All right. Dow fell nearly 800 points but not everything was down. The Home Builders saw big action on todays fed rate cut. And of course the bond market move lennar, pulte group, dr horton rose not a lot but up 1 or 2 on a day everything was down. Lets get to diana olick in d. C. With more. I want to preface that Mortgage Rates do not follow the fed funds rate they follow the the average year on the 30year fixed hit a record low moved higher this morning but back down tomorrow Mortgage Rates dont move as quickly as stock prices or bond yields giving the builders a boost. The etf closing up. 16 on the day up 5 week to date on pace for the best week since june 7th and on correction territory. Led by lennar pulte on dr Horton Lennar up 2. 5 investors think rock bottom Mortgage Rates outweight the broader concerns about the economy. As for the S P Real Estate sector positive for the day it ended down slightly. Reits make under the sector western, a high dividend, low yield play opinion a should benefit commercial real estate tomorrow morning we get the weekly read on mortgage applications, the refinance numbers should be big given this drop in rates. I spoke to the ceo of quicken loans, jay garner who said they had two Straight Record days for loan application volume. Record days there at least something up. Diana, thank you very much here is what i dont understand. Okay, brian lets talk about this. The retailers got crushed and have been crushed because the theory is nobody wants to go to the mall but suddenly everybody wants to buy a house. Whether touring a model home with other people too. Nobody wants to go to the mall for Different Reasons malls barely exist anymore. But they want to buy a home. At the risk of being the master of the obvious if we go into the consumer dynamic Housing Market is getting crushed. To be clear, 1 rates on 10year is kind of what we talked about earlier. Not necessarily a time to do cart wheels. When rates move this low ultimately its a sign that its prealert for the consumer. I would not be running in to buy housing here i dont think its distressed. There is some underpinnings of the u. S. Housing market including a lack of supply and lower rates and refie helps. But if the concern is the fed is getting ahead of recessionary risk and economic slowdown you dont want to jump into home build zbleers look at Toll Brothers down 20 in one shot. Because were preventing people from rushing into a stock because it maybe is a low rate. I think it was a rhetoric alquestions. The stocks up. 5 and Toll Brothersd yo resist, looking at other things, mass co, while pool down 4. 5 . Black and decker is down if we go into recession. Get out of the way of houses. However, brian, if you want to trade the instruments. What do you mean by rhetorical question. There is a h in i love the letters which you dont need but throw them its wonderful. Rhetorical falls under that category if you look at kbh, 32 was the low in november. 32 again held in december and look at where we recently traded down to and bounced from. 32 what does that mean . It gives you a great thing to trade against. There you go. Coming up, a not so supertuesday for stockholders but remember its supertuesday for the candidates voting under way across the nation. We tell you who the options mechanic market may be betting rba itw wee ckn o. On the outside. Ook sime but inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. At snhu we value your time. And your experience thats why well accept up to ninety credits toward your bachelors degree and offer discounts to active Duty Service Members and their spouses finish your degree. S. H. U. Dot edu. Finish your degree. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. All right. Well back. Stocks selling off in a big way on wall street bond yields to historic lows the dow off 785. And jim all over the big move. Be sure to catch mad money at the top of the hour. And stick with us. Fast money will be right back. Legendary terrain in telluride, the unparalleled landscape of park city, or the famed peaks of whistler, youve faced the hassle of lugging your gear through the airport. With ship skis, youre just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. With unrivaled pricing, real time tracking ship skis delivers, hassle free. Ship ahead and go catch those first tracks on fresh snow. Ship skis. Your skis. Delivered. The most reliableou are, xfinwireless network you to connect you with those who matter most. Thats because its the network that gives you the best coverage and more flexible data that you can share, mix with unlimited and switch at any time. Youll save up to 400 a year on your wireless bill. Plus, get 300 off when you buy a new Samsung Galaxy s20 ultra. Xfinity mobile. Click, call or visit a store today. All right welcome back well dont forget its supertuesday voting under way across the country. And the Options Market is already making some big bets as we count down to november. Mike khouw in San Francisco with your options action. Thanks, brian right now were looking at united health. This was obviously a hardhit stock today, down more than 4 but it did see twice as many calls as puts trade earlier on above average call volume. One of the larger trades we saw was a purchase of 1,000 of the march 295 300 call spreads spending about 95 cents for those. Making a bet it corally back to the prior highs we saw before the coronvirus concern now, the managed care space is one of the areas of the market that have been concerned about the election and specifically those that are talking about socialized health care pach it should be said there are other concerns in the form of coronvirus but it seems thats being discountsed heavily. Mike khouw with the options action for more oa tune in to the full show every friday 50 p. M. Eastern time. Up next we set you up for tomorrows trading session today. Up next. Options action sponsored by think or swim by Td Ameritrade through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. A more secure diaper closure. There were babies involved. And they werent saying much. Thats what we do at 3m, we listen to people, even those who dont have a voice. We are people helping people. Should they downsize . Nesters now. Even those who dont have a voice. Probably. Will they . Not as long as thanksgiving is a holiday. Planning for the future is about more than just money. Let equitable be your guide. All right. Another big day on wall street stocks selling off hard. Dow down over 700 points and of course full continuing coverage of what has been a wild couple weeks in a cnbc special report markets in turmoil, 7 00 eastern time time now for your final trade. Kick it off, tim. For context think about disney around 110, before it rerated and went on the big move, i think thats also a sideways market for a growth challenged environment i like disney. You should be nick. Karen. Normally when rates are lower thats good for bonds. But the hyg i dont think we started to see any panic in there yet. You get bond deals pulled its going lower. Short hyg. Mike wilson made good points about the high valuation, megacap tech names one in particular under the radar microsoft closed down nearly 5 thats a massive outsize manufacture look at the qqq microsoft and apple make up about 40 of that. I think puts look interesting. I think what you hope for tomorrow is the market opening lower, the 2850 level that tim talked about. Thats a big move by the way. And you could see for the shortterm a bottom. I think twitter in this environment makes a lot of sense. Great stuff see everybody tomorrow level the Playing Field for all investors. Theres always a bull market somewhere. Mad money starts now hey, im cramer welcome to mad money tweet me at jim cramer