Falling 973 point, but the real damage was done in the small caps which got a lot smaller today. The small cap indexes, you name it, you can throw a dart and hit one, it was down 7 to 8 . Small caps on concern of the domestic economy taking it on the chin you also have to look at the big banks. Big bank stocks also in the red. You heard the gang before just talking about it and also focus on boeing. Boeing losing another 12 today. Another very difficult day for boeing and the airlines in general. Just a reminder, we of course, at 5 00 will be monitoring that White House Coronavirus press briefing when it occurs, if you have marketmoving headlines or headlines that you need to know, we will bring you into that as always, waiting for it to begin and well dip in once or twice during the show, as well welcome, everybody as said, im Brian Sullivan and we have a great trader panel we have tim, karen, dan and guy. The gang is all here, and karen finerman, i want to begin with you because i know that weve talked a lot in the past about j. P. Morgan chase, the move in the markets was probably disconcerting, but how did you read the move in the bank stocks today . Well, clearly it was a painful day for bank stocks. I think credit is to me the more important factor here, credit and credit quality and so ive been following the highyield index and the Investment Grade index and the banks. I think well hear from them, i guess in two week, but i dont know any more that price to book is really going to be a metric or price to earnings certainly not because i dont think earnings will be anything significant. Im concerned about credit quality and i dont think well know were not going to know for a while, but its going to be bad. We talked about price to book. We dont know what the books will be because if banks have losses then youll be writing down book and that concerns me on the flip side, the fed will do everything it can to help the banks who are also helping the fed, but its it was an ugly day. Guy adami at the ten year equally ugly. Theres a lot and we can literally take our pick and the tenyear 0. 6 and the vix up again and oil down again what stuck out to you today . Not a great day the banks and you lead with that, and thats the right place to lead because it felt as if the banks found their footing and when you see the names down from 5 to 7 . I understand what karen is saying in terms of price to book and price to tangible book and theres no way of knowing if there will be writedowns and i think the good news if there is good news, i dont think these use banks and the main once, at least, the ones we talk about all of the time have the exposure to the Energy Sector they may have five or ten years ago. If they have a silver lining, what stuck out to me was exactly that, the fact that the banks really they lost themselves today, at least for a day and the fact that the vix, although, you know, it had been trending lower over the last week or so or over the last couple of days and it was back out again and its somewhat disconcerting. Yes, brian if you look at the markets overall you could get and hey, weve seen this playbook before, small caps and Retail Stocks which measures the russell if you looked at the xrt which has some measure of retail and these were leading us down here, and these are the ones they gave out today along with the banks and people need to hear some bottom up stuff on companies and based upon credit quality that were very concerned about and reminding that the bbb tranche which is three times bigger than high yield is something that youre expecting to see 30 to 40 downgrades on, but bank of america which you could argue could be a proxy to the entire sector has a 1. 25 loan loss and exposure here and if you look at the earnings profile of the bank and if you look at net interest margins, look, its no solace that you dont get to normalization to 2022, but thats the reality and the banks Balance Sheets look very, very strong. Yeah, tim they look strong for now, but when you think about some of the things karen brought up with the credit markets and if you think about where the stress is right now. Its in hospitality. Its in energy its in transportation and in manufacturing. They have a ton of exposure and theyre basically most exposed to the health of the u. S. And the Global Economy so i think sully, you just brought it up and you brought up the russell 2000, and i think that is a better lens for getting a sense of whats going on in the u. S. Economy right now and the sort of areas that might be in assistance and stimulus. To me, i heard strategists all day today looking for bottoms and looking for what makes a bottom and let me just tell you, weve been talking about this a lot and time is one of the most important inputs to finding a bottom make no mistake, Financial Markets globally have crashed from equities to credit to commodities and obviously, the dollar has crashed up in a way and its hovering around the 100 level. To me, i think there are a lot of stresses in the market and theres obviously been unprecedented stimulus efforts and monetary fiscal and really until we get this health thing figured out. There is no bottom there will be no bottom in any of these sorts of markets and i think time is one of the most important things that investors need to get comfortable with right now. Yeah. I think the data from Lpl Financial is that the average bear market has a bounce of 14 . If you go back to seven bear markets going back to 1950 the action that you saw in the market with the five to seven trading days on the sharp move up, that falls right into historical patterns and dan, i want to play with sound bite of the ceo of Morgan Stanley in the last hour. He said the dividends need to be saved because people need the income lets listen to this, and then dan, i want you to comment. The recipient of the dividends are many times small individuals who own these very large bank stocks all over the country, to lose that income at this time i happen to think would be a very poor thing to do yeah, dan, do you agree with that keep the dividend. Believe there are more important things to do than pay the dividend obviously, this is a very important part of investing in Financial Companies and capital return it was one of the things that held them back for years and years after the financial crisis, but again we need to hear those confidence things from the companies because the worstcase scenario would be a lack of confidence and then investors start selling ahead of it i tell you what, brian. Guy adami sorry dan was bringing up a good point about the banks here ultimately, you dont have hi, financials which were not giving dividends basically up until aier and a half ago and they went through the stress test i dont think Morgan Stanley paying a dividend is not like paying a dividend. Banks report in two weeks. Well get insight into credit exposure and certainly what i hear dan saying is time, theres no reason you can go out and buy a bank today i do think that part of todays move, though, if you look on a market basis was somewhat selffulfilling and the market had rallied massively and there was terrible news on the coronavirus front and so banks and people will go after them, but you dont have to buy them tomorrow theyre not blowing up tomorrow. Yeah, guy adami, were all talking to people working at banks all day long and im industry contacts as well as personal friends and theyve launched and theyre doing okay, but you wonder the work from home thing and the distancing how long the banks are going to be able to function whether its a commercial bank or an Investment Bank if this goes on for another couple of weeks or maybe a couple of months this is not easy for anyone in any industry no, and its clearly not something that you can prepare for in terms of the duration with which this potentially lasts and listen, i understand what tim is saying and i understand what karen and dan are saying, but it comes down to this, and this is something they think people should think about. The longer this lasts you have to ask yourself with the u. S. Economy 73 driven by the consumer, if people learn to live with less, be it by choice because of the up fortunate reality and we might number a paradigm, and what the markets is trying to do is figure out whats the real earnings number and whats the right multiple for a market in an environment thats changing beneath our feet yeah. Guy, if youve figured that out, you certainly let us know bring in a guest who does know and hes well known for the cnbc audience and that is david tice and is rejoining the industry as the chief Investment Officer of ranger alternative managing and active bear fund david tice joining us first on cnbc david, we appreciate it. Thanks for joining us. I guess welcome back into the fulltime world. Why come back now . Is it because you see continued declines ahead you are a noted bear, not entirely, but that has been your sort of your modus operandi over the last number of decades. Well, glad to be with you, brian and im sorry with the hardship people are going through this terrible virus and the bear market. Ive been out of the game for 11 years since i sold my fund to federated and so ive watched it and ive watched the excesses build, and ive watched how we have essentially said action and suppressing volatility has just created more and more fragility and this virus, unfortunately has the catalyst and is bursting several bubbles. So really we have the stock market bubble that has burst we have a bond market bubble thats been burst and we have a bubble that trump easily elected. Thats no longer a sure thing. Weve had an energy boom bubble that burst and we have the confidence in the Federal Reserve and that bubbles been burst. So ive gotten back into the game for consummate professionals that ive had long relationships with and its been an active etf for a number of years and its done well in protecting investors and bear markets and its time for me to put the shoes back on. So how do you see this ultimately with the equity markets and the bond markets, david, playing out well, obviously, nobody knows for sure, but i think lots of people want to believe, and you look at 08, themarket went down and it came right back up weve had a lot of bear markets where the fed has saved us for now its zero Interest Rates and weve had the fed fire a number of bullets although they certainly have a lot left in terms of additional quantitative easing and who knows maybe monetary, but none of those are going to be something that will save us longer term until and unless we end up getting to hyperinflation and the stock markets go up like they did in argentina. We believe that magnitude of these overtures from the government and the fed will not upset the impact of the shutdown if people are working from home and these businesses are all shut down, that is massive we have never seen a decline like this before th this is an unprecedented global collapse, and unfortunately, its going toy krcreate some pan we think it will be more likely be an l recovery rather than a v. We dont think there will be any parades when trump says it is all clear. We think people will still save their money and theyre not going to rush out to restaurants and there will not be as much pentup demand as people might think and the stocks are getting cheaper, earnings will cut down a lot. They are. David tice, ranger alternative chief Investment Officer and the adge inverse market etf, david, i guess it was a pleasure to have you on. Im sure well talk to you again soon thank you very much. Karen finer midcap, i want to ask you, you heard what david was saying and what you hinted at over the past few months was that the market was already on edge a bit nobody could have foreseen this coming, but do agree that those things, bonds were in kanw equity bubble and this just popped it . I dont know how bubblish, but it extended to the upside and certainly valuations were extended to the upside and the fire was already set and we just needed amatch. This was a blowtorch, and i think that hooz right about that i wondered, though, earnings are going to be terrible no question about that, and theyll be terrible for a while and i thought it would be a one or twoquarter thing and i thought it would be longer than that, and way longer for some other companies, but i think the market ultimately will look through to earnings power in the long term, and you have to be in companies that will be around in the long term. So Balance Sheets are Balance Sheets getting back to credit again which has to be the theme. You have to be in companies that have Balance Sheets that can survive. Yeah. You know, the one thing that we have talked about. Karens talked about it is some of these bond funds and i wrote about this, and weve talked about it on the show. These closed in bond funds and theyre cal oped again, you have pci of pimco and some of these names got hit, 7, 8, 9 down today. What do you think the credit market is telling us right now and how do you think the credit market is doing right now, tim. All right no tim there guy, can you answer the same question how do you think the credit market is doing right now because those bond funds we talked about, they dont look great. Trying to find its way is the best way i can put it. I dont think its doing particularly well. I think theres some stabilization and it feels like unfortunately, there might be another wave everybody talks about a bazooka and thats true and they had a bit of a snipers rifle and theyre looking at this from all different viewpoints which is probably right and theyre able to stave off a potential disaster and it seems to be falling back in that crevasse. I think dan is exactly right theres no elixir for this other than time and everybody again wants this thing to go shooting back to the upside and get to levels we saw three months ago i just dont think thats in the cards right now, brian all right, guy adami can i just add one thing that was interesting . We have a lot more go ahead, karen, quickly. Carnival cruise got a bond deal done today which is kind of amazing to me. It didnt help the stock at all, and the fact that they were able to get that much done was surprising and oversubscribed. The stock was down 31 and the interest may attract some buyers well see. We have a lot more to do on this hour of cnbc coming up, well chat with the ceo of 3d systems. Find out how 3d printing is help making sure that these critical medical supplies that the First Responders are getting to where they need to be and the White House Coronavirus press conference we are monitoring that, and well bring them to you. We are back on cnbc. The dow down 973 points today. soft music [female vo] restaurants are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. But when allergies attack,f any the excitement fades. Allegra helps you say yes with the fastest nondrowsy allergy relief and turning a half hearted yes, into an all in yes. Allegra. Live your life, not your allergies. Shbecause xfinity mobilehen ygives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 300 off when you buy a new Samsung Galaxy s20 ultra. Thats simple. Easy. Awesome. Go to xfinitymobile. Com today. All right. Welcome back to cnbc, everybody. I am Brian Sullivan. Lets talk more now about the increase in testing in the United States. More than a million americans have now been tested lets get more now on this, where we stand with meg terrell who has been reporting excellently on all of this the entire time. Meg . Thanks, brian that million test threshold was surpass th surpassed this week, but there is tremendous variability in terms of how much testing is being done take a look at this map of testing per capita new york is at the top of that list the darker the state here the more testing per capita. Washington state, also second and that was the state with the first state in the United States louisiana coming in third with the amount of testing being done per capita there and were seeing new orleans cases really take off, doubling at a rate of every 2. 2 days according to evercore isi thats pretty fast in terms of the states doing the least, texas, South Carolina and for california for california its a pending test 57,000 tests that its awaiting results on whats driving some of these backlogs there is a shortage in the supplies, including the chemicals and the swabs to perform them and also the protective gear for people administering the tests and also the fact that a backlog was generated in these tests before the capacity really ramped up so thats something that companies are still working to process also as there are fewer flights, the samples dont have the range to be processed. Dr. Debbie birx was saying it hasnt been adopted and people are still sending the same systems each though the capacity might be available elsewhere, brian. Its just a real clunky system some places its working better than others, but still a huge problem. Yeah, and a quick comment anan a question if theyre waiting for 57,000 tests in california, those numbers can spike higher maybe you can answer a question. A lot of my friends have texted me wondering if you have a lot of symptoms and youre very ill and you go to the doctor and you can often get tested in the drivebies and we seem to be getting people, basketball players and wellknown how are certain people getting the test and others waiting . Unfortunately, who you know seems to matter in medicine as much as it does anywhere else, so you know, if youre well connected you may be able to find a test whereas if youre not well connected youre waiting in line and the cdc has issued guidelines for the people who are the sickest, in the hospital and health care, woers and First Responders with sympt