Future and later, President Trump says the time for negative Interest Rates is now. So were breaking out our crystal ball to see what the market will look like in a world of negative rates and we start with the market selloff the stocks tumbling after the path forward is highly uncertain and subject to many downside risks. The prolonged recession and weak recovery can discourage business advancement and expansion further limiting the growth of jobs and the pace of technological advancement. The result could be an extended period of low productivity growth and stagnant incomes. And then theres this, Stanley Drunkenmiller telling the Economic Club of new york that the risk reward for equities may be as bad as hes ever seen and scott telling scott wapner that this may be the second most overvalued market hes ever experienced so did the markets just get a big dose of reality, guy first of all, i know youre not in charge of music at cnbcs fast money and im getting ready for the twitter hatred, but danger zone by kenny rogers is loggins, not rogers yeah. Loggins, rogers, doesnt matter i mean, you know loggins my point is its an awful its an awful song and loggins and messina ill take, but kenny loggins. Come on, man. With that said, there are a lot of people that bow at the feet of david terp for good reason, but those people, maybe we shouldnt listen if you liked him when he was bullish, you have to respect him when hes staying this is one of the most overvalued markets in his career and that on top of what Stan Drunkenmiller said it has to give you reason for concern and kudos for dan nathan who will fricka see me at some point of the show while the markets been going higher. The good point about today if there is a good thing is that the s p traded smack down to 2790 held and bounced 30 handles into the close ill take that as a ray of sunshine, but you doused it with that awful choice of music i actually called for that specific song, guy, knowing that you hated it dan nathan, frickasee now or later . Listen, guy mentioned that technical level 2790 i think whats interesting about that is that in the s p 500 that is almost exactly the midpoint of the range from the february highs to the march lows. Its also a level where we were a month ago and its also a level where we were a year ago so the market has made very little progress over a longer period of time and right now its taking time to digest i want to be very clear, and i think every single one of us panelists in late march probably to the day whether it be the 23rd or the 24th would say that the peak to trough decline was overdone we expected a bear market rally in the range of 20 . We got to 35 . That might be commensurate with the sort of fiscal and monetary response that we got in such a short period of time, but now investors have to make a decision i think listening to some of these guys like tepper and drunkenmiller who is one of the smartest investors of the last three decades makes a lot of sense. They listened to a little bit about their history with the markets and their history with valuation and their history with crisis and to me you want to be listening to the voices right now especially when the market is at a critical technical level. I know you hang like many Market Participants hang on his every word he indicated that his worstcase scenario is a period of low productivity growth and prolonged slow growth and income which is not a good sign for the economy and not a good sign for the stock market and we need fiscal stimulus which almost sounds like that fed backstop is limited in what it can do, and we hit this over and over again. This is not just a liquidity problem, it is right now, but it could be a solvency problem which the fed cant necessarily solve. No, they cant, and thats the problem ultimately with negative Interest Rates, too ill save that for a later part of the show, and the fed cant solve companies that have no ebitda and ultimately you will get into a situation where it will be untenable. Look feds powell today was realistic at best, but on the down side he pointed to an economy that will need more low pressure and that all they have done here is to try to, you know, throw a lifeboat to liquidity and thats really all they should be doing so today was a concern, and it was a concern because i think you really had converging thoughts okay we just talked about Market Players and how about the u. S. China rhetoric and the guys did a nice job, and i thought they were ratcheted up today and through the mouthpiece, it often is the Chinese Government that there will be consequences for states or individuals or companies that attempt to extract some kind of litigation or something against the chinese for covid19 i think we had a handful of things after a sixday run in the markets before yesterday or obviously the tide turned and the technicals broke down and we have carter here today to talk about those charts. The gremlins have gone for now so karen is with us. Karen, what did you make of todays action in light of your final trade yesterday which was mimed effectively when you crossed your arms and i think mimed may be underutilized in this format of television, but you crossed your arms indicating that you will stand pat. Its a stand pat do nothing right. I think that i mean, obviously the run has been enormous so we all know that dan talked about the magnitude of the bounceback, so thats the number one thing and then i think that, you know, we havent had we havent had a look at how openings are going and how slow is it going to start out and how long will it take to actually get some real momentum and get a sense of how long it will take . I feel like we have no data yet on that, yet the market seems to have priced even with this twoday selloff seems to have priced things going pretty well in terms of people going out to eat again and restaurants are doing well and theres hope for some retailers so i think that ultimately, we will get there, but i dont know how easy its going to be. This rally the last six weeks made it look like no problem its going to be really easy all of that being said, im long im always long. In a market like this im not sure what to do except to wait for things to come my way or put on some hedges when they get too frothy im short some qqqs and im absolutely long. Google is my favorite position and facebook, apple, i have exposure there i have definitely exposure in the banks. Im short some ag and thats not working right now and again, im a little stuck as to what to do because i think that the fed has given us a life raft for some amount of time right i dont know how long that is. We dont know how long it will stay inflated, the raft, that is. Speaking of bank, tim. Good metaphor for some time that they trade h horribly, dan in particular bringing up j. P. Morgan, but you have another chart yeah. Look at wells fargo while we know the banks are making new lows relative to the s p and that speaks to yield curve and negative Interest Rates and credit issues and wells fargo is a bigger concern because this is one of the top three, top four Money Center Banks in the country. We know wells fargos issues and the regulatory things that have run a foul and Customer Loyalty questions and the way the stock is trading and if you look at this chart and its underperformed the xlf in 92 sessions and thats implying that theres something greater going on and ill just say that wells fargo on valuation and its relative performance to the sector looks, you know, untenable here and in fact, there are a lot of conversations as people remember that went on in the crisis of 2008 and 2009 and it forced marriages and i dont think were at that stage here and it is very clear that wells fargo is a wicked underperformer relative to its peers and that is after three years of underperforming and it has me concerned hes got not one, not two, hes got five charts that point to more trouble ahead. Carter, what are you looking at . Hi, team. How are you . Well, it is a problem and we know the markets rally has been on borrowed time postponing the inevitable and things like wells fargo are working. The first chart is that of the bkx, and you can see after the plunge that nice countertrend rally and thats often whats called the bear flag and then you break down through the lower band of that channel now put that in your minds eye and take a look at wells fargo tim just touched on this wells fargo could never actually fly. It never really bounced and its now made a new low and wells for example owe, no bounce whatsoever and heres a comparative chart and number three, the market is a 12month period versus the bkx and now well it is fargo down 49 and weakness begets weakness and both the upside and the down side the fourth of the five, what we know, look at this selloff. This peak to trough so far is down 63 and thats compared to the financial crisis selloff on 82, and i think theres more to go ultimately, i think wells fargo will touch 19. It closed the day at 2253. Last chart and this is the entire Financial Sector going back to the peak in 07 and this is the real the real problem. The entire Financial Sector could never get above the 07 high and think about how high it was for the s p. The financials and the neck an imfor the whole system, the economy. Something is wrong and its been wrong. Carter. Always great to speak with you, thank you. Guy adami, pretty dire chart from carter worth. I wish i was able to view the five of them, but as you know its very difficult for us to see anything where we are, but this, too, shall pass, as they say. Carters been steadfast. Dan has been, as well so i am in agreement. I want to say one thing. Karen brought something up she mentioned being short xyg and i think you said or she said its not working out, and it struck me, karens about as disciplined a trader investor as you will get and that hyg should be working out, but for the fact that this money is poured out from Central Banks and this unofficially disorganized market, but there is damage from the Central Banks activities and it comes in the form of people doing the right thing, but i think thats pfrpt and the Collateral Damage and the unintended consequences of these Federal Reserve activities are broad and thats just one of them i think carters charts and guys commentary a step further and obviously, the weakness in the banks is probably warranted. Its saying something about where the economy is its probably saying what the next ten to 20 in the s p 500 are, but i would tell you equally concerning is the crowding in megacap tech, and i know you guys covered that off the top yesterday where you see microsoft, apple get back to their prior highs and be rejected google back to a prior level where it was rejected in january. A stock like nvidia which trades at nearly 15 times sales is up 33 on the year and its trading, yesterday i was at an alltime high and theres some insanity going on here, so i would say the weakness in financial stocks and banks in particular and the strength in megacap tech are equally concerning when you think about where we are rid now relative to just the valuation in the market relative to where we are in this Economic Cycle which i suspect is going to be a deeper and longer recession than most people think and what the market is pricing right here. We have breaking news here on Fiat Chrysler. Phil lebeau has that. Fiat chrysler and psa peugeot. Both Companies Announced they will be suspending their 2020 ordinary Dividend Payments for Fiat Chrysler shareholders that ordinary dividend, 70 cents a share comes out to more than 1. 1 billion for the company and that was supposed to be paid out a week from today. Because of covid19 both companies are saying no, we wont be paying those dividends out. Both companies are saying this is not going to impact the plans to merge the two automakers. Remember, as part of that merger agreement they have agreed each has agreed to pay out a special dividend to shareholders of about 5. 95 billion. So again, both are saying that that merger continues on pace. We have yet to see the Fiat Chrysler shareholders vote on that merger proposal and thats likely to happen in the next month or so. Both ti at chrysler and suspending their ordinary dividend payouts melissa, thank you the tock is up 6. 6 is that why the deal is is on track and it will be on the special . I think thats right. I think people want to see that deal close and ultimately keeping as much fire power and drawing in lick ridzity is something that well see every other Company Going and where its not obligated i think they should be doing that and remember, regular dividends are giving money back to shareholders thats prudent at a time when the company doesnt need the money ultimately its a disbursement this is not a time to be doing that if you owned a business you wouldnt be doing that so i dont know why they would be held to task for that. This merger is something people want to see get done i think thats the reward in the stock price. As youre seeing there scroll in front of you dividends that have been cut in this environment i suspect that there could be another wave or hesitation after reopenings, when it comes to people relying on dividend points. Reit. Its the prudent thing thing to do and we talked about companies bet gettings free pass, i think a lot of companies will find it more palatable to cut or suspend the dividend think about it, disney, right . Disney not paying their firsthalf dividend and thats kind of amazing to me and we sort of accept that. Its the right thing for them to do if capital is at all an issue you have to save it. Save the capital, not save the dividend. Shares of cisco higher after reporting results and later, more green arrows, the chinese internet stock is jumping and how one of our traders is long widing his name. Fast money is back in two. Rot. Low sugar. So good. High protein. Low sugar. Mmm, birthday cake. Pure protein. The best combination to help you stay fit. Welcome back to fast money. We have an earnings alert from cisco. The stock is pulling back with the afterhours high with the call just under way. Lets get to josh lipton for the details. Josh melissa, lets dive right into the segment here. Infrastructure platform and thats the companys core networking offerings that was down 15 to 6. 3 billion. Demand has never been greater, Chuck Robbins on the call, but this area was particularly hard hit by the supply chain disruptions caused by the pandemic and then theres the Application Segment and teleworking tools are now a lifeline, robin and its within the segment and it is down 5 in total to 1. 36 billion, but there was a fair amount of talk, melissa, on this call about webex and thats the Videoconferencing Service and zoom rival they gave metrics and 500 meeting participants for webex and 25 million minutes and that was triple the volume in february security, by the way up 6 and robbins saying theyre seeing solid growth there and he was asked on the call by analysts how does he frame whats going on versus prior periods of Economic Uncertainty and Chuck Robbins saying we are in a better position today than in times of previous uncertainty why . Because of the Security Portfolio modernizing webex with the strong Balance Sheet i fail good, he said on the call and theyre looking for q4 with 72 cents versus expectations of 679 cents. In q4 they do see a revenue decline of 8. 5, and 11. 5 and analysts thought they would see a decline of 12 on q4 be sure to check out mad money. Our own jim cramer sit douting talking about the call we were talking about Companies Getting a free pass when it comes to guidanceand for cisco to give guidance for the Current Quarter when so much of their revenues as a percent is exposed to Public Sector and its exposed to schools, for instance, small and medium businesses and all of the things that are shut down or really harmed in this pandemic. Yeah. They have exposure to, and to your point because if you look at the quarter, by the way, their operating margins came in way above what the street was looking for. The quarter by itself was a very good quarter to your points there are headwinds theyre facings and guidance they gave to the Fourth Quarter sort of speaks to that its a cheap stock i think we all would agree that its not an expensive stock and yeah, they dont have the eps growth that you would want, but go back and look and its failed there a couple of times and its failed to trade it is to buy it on a break at 44 which i think you will see right now or wait for it toward 39 level ive got it back todays losses and break it down at 44. 5, mel dan your point, mel, about the Public Sector exposure and the enterprise exposure and those ared areas where if youre looking for things to pick on those would be the headwinds that you would have over the next couple of quarters and ita seems like theyre executing very well and the ability to give guidance for the Current Quarter given the environment that were in, and thats pretty impressive for the subscriptions and Software Sales is up 75 and i think its up 9 year over year and thats what bulls are focusing on. I just want to make one other point. Webex is the zoom competitor and zoom has a 47 billion market cut and trading about 50 times sales and ciscos market cap is a little over three times that of zoom and i think theres probably value to be unlocked there if cisco can start to get more momentum in this learn from homen viern the over the next