In what minority leader Chuck Schumer called the largest rescue package in american history. Boeing and the Airlines Getting a huge lift on the back of that stimulus package with some names up 20 or more and treasury yields pulling back today with onemonth and threemonth yields in negative territory for the First Time Since 2015 weve got a great lineup of guests for you today including two key players in the global food chain the ceo of yum brands, they own cfl, pizza hut, and taco bell, keeps some open for pickup and delivery the ceo of mondelez, the steps his company is taking for his workers to keep that food on the shelves. Lets focus in on the big stories we are watching today. Mark santoli is tracking the market but kayla has the latest details on the massive stimulus package and when we can expect it to actually pass. Sara, the text of the legislation was circulated around 10 00 this morning before republicans and then democrats in the senate held respective calls with the treasury secretary to understand the contents of these 800plus pages of legislation in this deal that was reached in the wee hours of the morning on capitol hill. They took some time to understand what was in it. It was a few hours before some of the objections started emerging one so far is coming from the republican side of the aisle three senators, senator ben sasse of nebraska and if two senators from South Carolina, raising objections over what they call a massive drafting error that incentivizes workers who are paid on an hourly basis to quit their jobs or be fired from their jobs and receive the Unemployment Benefits that are outlined in this package they say that it would be more lucrative to leave a job, say, at Grocery Store or at a hospital where those services are so direly needed at this time and instead would be receiving these Unemployment Benefits just last hour, senator Lindsey Graham expressed why he was objecting over this. This bill pays you more not to work than if you were working. Very few people are going to turn down a 24hour dollar deal not to work. Reporter so what does this mean for bills passage . Well, leadership in the senate was hoping to have a vote by the end of the day, and i was texting with a few sources on capitol hill, and the expectation is that some change would need to be made to address the concerns raised by those three republican senators. They are asking for language that says that if youre receiving Unemployment Insurance it cant be more than 100 of your salary or your earnings before you accepted those benefits unclear exactly what this language will look like when its finished, but the sense is that something needs to be changed in order to secure the support of those lawmakers and kayla, the us aage making as youre this describing it is never a pretty process, but time is of the essence here what do you know about, you know, once this passes, how long will it take for americans to get those checks how long will it take for Small Businesses to get those loans and big businesses in some cases like the airlines to get that cash infusion . Because you know what, were talking about a surge in tomorrows unemployment claims this is literally happening in a very fast speed. Reporter yes and sara, here on capitol hill, i say here, im obviously not there right now, im in my backyard, but on capitol hill where this legislation is moving, the house of representatives needs 24 hours notice from when the final bill text is released from when a vote is scheduled. So we havent seen the final bill text, so add on 24 hours from that and then the president would need to sign it once the house passes it. Then its up to the individual agencies that are the vehicles for this money to get those funds through to the different constituents the direct cash payments, those we have learned from the treasury secretary will be direct deposits from the irs then there was a Small Business administration facility, a Federal Reserve facility, and then a treasury facility that will go to corporations. So it really depends on, you know, which part of this package you are needing money from, how good your relationships there are, and whether you have some of these existing financing mechanisms in place that you can just essentially go and turn the switch on. Kayla, thank you so mr that from the bank side of thing, the commercial banks are expected to help deliver some of these loans to companies and individuals i spoke to a senior cfo late last night who at this stage was still in the dark what that process was. Just warn you can expect a few administrative hurdles as when this bill finally passes before the banks are ready to deliver all the liquidity intended we are up 4. 6 on the s p with 54 minutes left in the session lets get to mike for a closer look at the s p 500s move today and of late. Mike yeah. We well, yesterdays rally very powerful and broad it made a decent case it would be a relatively reliable low for the short term todays action is improving in that case. I would say its essentially supporting the idea that what we saw in the prior several days in the market when we made the new lows on monday was a little bit of an overshoot, and once we got away from the idea that the fed was going to kind of let financial conditions get very messy from here on out, once we kind of walled off that risk, some buying could happen look at the year to date s p chart to frame where weve gone and where were maybe headed to. With this twoday rally, all weve basically done is dialed back eight days. We were trading around these levels of 2,500 on st. Patricks day, march 17th. I also think its significant that we would, if we closed right here, have gone above the close of march 12th. That was the day of the most intense selling. Frankly, all were doing right now is closing up that downside overshoot, and it doesnt necessarily say where we go from here everybody talking about how the biggest oneday rallies tend to happen in bear phases, not at the very low these are just guidelines and we can have v it go any which way from here. The thing i want to accentuate is you could go up about 5 , 7 from where were trading right now and all youre doing is popping back to that place on march 11th where we just fell off the cliff. So, again, were just sort of kind of patching up that big hole in the chart and then you take it from there to see if theres any followthrough beyond is there anything else fundamentally youd be looking for, mike, where youd feel more confident saying, okay, this maybe the bottom it feels like theres a lot of skepticism out there still about the trajectory of the virus and the shape of the curve in the u. S. , even with the help of 2 trillion of stimulus from washington absolutely. No, sara, and i guess we have to kind of define what we mean by fundamental. I think if you look at the fact that credit indicators are doing better, so you have normal market functioning, maybe thats a low bar, the fact we have a functioning, you know, bond trading activity going on, but thats helpful i dont think that fundamentally were talking about trying to get a fix on earnings power for this year or anything like that. And to your point, the key i duration of this forced economic halt, because were not really i dont think working with any linear data set that the market is tracking to say heres when well know when, in fact, the worst is over. I think all along, ive tried to say this and maybe its not that helpful, the way the market was going to go, it was going to overshoot to the downside what was then a probable scenario for how this virus affects the economy. Did we do that on monday maybe. It was going to look like this no matter what level it happened, a violent v on the chart and well see if it holds up always helpful to get your warnings thank you, mike santoli. Lets bring in david harrow and find out what hes doing, chief Investment Officer of International Equity at Harris Associates joining us by phone what do you make of this twoday move if we close up like this, first backtoback gain since this whole Coronavirus Crisis started to hit the markets you certainly cant get obsessed with shortterm Price Movement the this environment. It has been a very aggressive roller coaster over the last few weeks. And so what we try to do is as follows. We try to by discussing with our companies and doing our fundamental research and meeting with all the parties that are involved in a particular business in which were invested in, we try to come up with the most accurate picture of what the business is worth over the long term. And, yes, these shortterm, shutting down the economy for a couple months, is certainly going to have an impact. But our view is generally speaking the impact this has had is far smaller than the movement and the price of the businesses. So what we have to do is stay as current as possible on the value of the companies so when the market through all this volatility goes up and down and up and down, we can keep our portfolios positioned such that those companies which have the highest expected rate of return are maintained big positions in the portfolio. The volatility has meant you could barely blink there was a company we owned one morning it was down 10 a couple days ago and it closed up 20 . That is a 30 interday move. Obviously, this isnt fundamentals the Business Value didnt go up by 30 and it didnt go down by 20 . Its just this is the way it is and its important for investors to look ahead, not to get so concerned and time every shortterm move, because theyre big and theyre frequent youll get dizzy so, david, i mean, clearly, there is a lot of volatility and you dont want to be drawn in on daily moves. That said, the more pronounced selloff that weve soon since the high provided a lot of opportunities. Did you act significantly . Did you rebalance when we were at the lows . I know youre still tempted to do so. Or are you just holding the same Companies Whose values havent moved much as of a few months ago . Oh, no. Weve really had to do a lot of rebalancing through all of this. Now, this top say 15 names are probably still pretty much the top 15 names in the portfolio. However, their relative position in the top 15, given the contrary Price Movements, the conflicting Price Movements between one another, as meant that you had to be very cognizant of the need to rebalance. And also the shortterm Economic Impact of course affects some Companies Different than others. If its a company with a more variable cost base and a strong Balance Sheet, et cetera, it might have one impact on Business Value, and if its one thats more geared to the shortterm economy, it has another. So weve been very busy. You know, traditionally, our natural rate of portfolio turnover, were boring longterm investors. That turnover is about 25 this year it will be over 50 . For some Portfolio Managers thats still light, but, you know, this is who we are we invested pieces of businesses, which we think are good Quality Companies that are selling at low prices, and we behave as longterm investors. So, david, give us a sense of or name some names for us of where you think companies have been unfairly punished and where you see especially good values well, i mentioned this before if you look at the european financial space, you see kind of a mixed bag. And yet some companies are hanging in there and doing very, very well despite the fact that their share price is down about 40 , 45 , almost in some cases 50 . Take a bnp paribas or a Credit Suisse, Strong Capital position, something that needs to be emphasized, that 11 years ago, going into the financial crisis, the Tier One Capital positions on an equivalent basis were somewhere around 3. 5 , 4 . Today theyre at about 13 or 14 . So absolutely theyre going to face a couple really tough months, but today unlike 11 years ago, they have the Balance Sheets to fight through this so this has been one area that has really gotten clobbered as well as a lot of the consumer discretionary. Take a company like a bmw. You know, its down on a 37 year to date and it has 17 billion of cash on its Balance Sheet, is one of the premier auto brands. These are companies that will get through this, have Good Business models, have good brand cache, and theyll do quite well but you have to be patient because it is very volatile and, you know, theres always opportunity somewhere when theres this kind of volatility. David herro, thanks for phoning in thank you s p up 4 still to come, italys caseload and death toll have been on the decline, but seeing an uptick yesterday. Well tell you the latest about e sss c lrnn that country and thleonweanea ithe u. S. S. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Dont get mad get e trade and start trading yes im stuck in the middle with you, no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its the most open and secure public cloud for business. It can manage all your apps and data from anywhere. So it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. Without getting in your way. 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 ] lets give you an update on the market the s p 500 up better than 4 . Nasdaq a comparative laggard, but well take a 2. 5 move given what weve seen in the last month. Lets check on some stayathome stocks for today Credit Suisse is raising its subscriber outlook for netflix, citing increased app downloads amid social distancing they expect the streaming giant to add 9. 6 million subscribers for the First Quarter compared to its previous forecast of 2. 6 million. The despite the bullish outlook, shares of netflix have been moving lower by about 3 right now. Warner media releasing viewership stren shiship trends amid the outbreak. Since march 14th, time spent on that platform up more than 40 from its fourweek average, hbo shows delivering gains of more than 50 during this time including big little lies, chernobyl, and game of thrones. At t moving higher by 6 on the session. And zoom video higher today as well by nearly 3 . The recent rally comes as more people work from home and use video calling to stay connected amid the outbreak. Shares of zoom video are higher by about 30 over the past month. Tyler, thanks so much for that italy has more than 70,000 cases of coronavirus, quickly approaching chinas total. Meanwhile, case and deaths have been on the decline, the most recent numbers are mixed meg tirrell joins us with more theres a lot of hope seeing those numbers decline in italy since saturday of both new daily cases and the number of deaths reported each day. However, yesterday we saw an uptick today we just got the update at 1 00 we did see them come down just slightly, so it almost looks the same on the last two graphs. What people are wondering is does this mean that there was a peak on saturday and well start to see a downtrend epidemiologists and Public Health experts are saying it is too soon you need at least two more weeks of data to see if the trend continues. Harvard saying about four weeks from the lockdowns is when we should probably start seeing a real impact. As you can see here, italy expanded its lockdown nationwide on march 9th how does this compare with other countries and particularly us here in the United States . Those horizontal lines, the blue, the green, the yellow, and the purple, those are Asian Countries which have managed to flatten the curve in the first 30 days after their 100 cases. We are many tin the orange in te United States with the steepest trajectory in our first month of outbreaks here that is not a good sign. We did, however, hear from new yorks governor, andrew cuomo today. He is expecting an apex in about three weeks so i hope these efforts will start to flatten the curve. Well be looking to italy as a leading indicator for us in the u. S. If they can start to do that i guess comparing cases, a huge amount does depend on how much testing the two countries or multiple countries are doing and also doesnt take into count the size of populations. Its not a sort of percapita comparison no. Thats absolutely right. Of course italy is a much smaller country than the United States, but the testing impact is extremely importantbecause that can explain a lot of environments in the numbers. Thats why we need to see a couple weeks worth of data to see if that trajectory holds because sometimes even the workload can be shifting throughout different days. So you might see a move up or a move down but thats just because, you know, the labs are getting overwhelmed and theyre reporting everything all at once meg, tha