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Brennan and jon fortt. Markets have been well off the highs. Dow was up 937, trying to hang on to about 400 points on the dow right now. Lets bring in mark mahaney of rbc, david lovevitz of jpmorgan. We knew 2700, 2750 would be a bit of a battleground and its turning out to be exactly that yes, exactly. One of the things thats occurred here over the past couple days really over the course of the past weekend is you finally saw consensus earnings system begin to come down and the narrative that had been in the Market Equities are looking cheap, the question we were always asking was cheap relative to what earnings . When you use the new estimates that are around 145 a share, you know what youre seeing is stocks are looking fairly valued not outright cheap and i think thats a big part of why were seeing things run into resistance at these levels mark, its a great opportunity, davids answer, to ask you how in the world analysts are ....
Less normally. Lets start there, jim, in terms of the market overall. I have a lot of insight this morning to share on the credit markets where i tend to be focused of late. Like to come to you. When you see a rally, the likes of which we may at the open this morning, what are you thinking what i think about when i see this, the market got oversold, people last night went home thinking theres no possibility of any sort of deal. Without a deal all you have is the fed making sure theres liquidity but nothing in the hands of the people. If you dont get money in the hands of people, people will look at the landscape and say its really just falling apart something has to get done. Now theres an expectation that something will get done. If we dont get something done today with the senate, youll give up this whole rally youre banking on the politics getting together for something, otherwise this rally will be comical and you will wish you never bought in. Well be able to offer hopefully peopl ....
Overnight, though they lost some ground this morning. A lot to watch, china pmi backing expansion, the fed launches a new dollar repo operation. Jim, sounds like youre focused on testing, having talked to abbott last night. Right i think that myles white and now the new ceo recognize this, as they did during the aids epidemic, when you find out who has it, everything changes in this country, we can find out who has it, and doing a serilogical test, finding out from blood of people who have had it maybe a lot more people have had it than we knew. Maybe we can find who has got it, they can be quarantined. Already the carpers people are saying its only going to be med techs and hospitals. Myles and robert told me absolutely, this will devolve into a pregnancy test at home. How quickly, i dont know. Abbott labs is one of them dr. Gottlieb is going you know what ive seen science this is working in forgave earl avor ofd guys megs work with alex gorsky made me feel maybe next year we can go t ....
Record that we saw back during the financial crisis of 2000, march of 2009. Jim, stunning though the number is, of course, we also have the stimulus or socalled lets call it more of a recovery act making its way through the congress the house set to act shortly on it were going to be joined by the treasury secretary, Steven Mnuchin, about 15 minutes from now to discuss that. And so many other things in the economy. What is at the fore of your thinking as we get started with trading a half hour frau noum . The gap we have 3. 2 million that file claims obviously, money comes for them, but i want to know date that the check is in the mail how it comes, how you get it, will it make it so that Small Business stays alive medium sized business stays alive, and is it enough to keep them alive for the pandemic . Is it one month, two months . How long does the 2 trillion last because t ....
Furloughs taking place the other thing to keep an eye on is the high yield bond etf, hyg, and also the junk etf, spider, bloomberg, bark clays, hy bond, jnk were seeing those jump because of some of these fed actions which include now basically buying into and helping support u. S. High yield corporate bonds, so really talk about taking all the tools out of the chest its cause something strategists to now circulate notes today asking what could potentially be next for the fed is it going to be Something Like buying into actual equities . Guys carl . We are glad back to have on our air art cashin, director of floor operations at ubs and bob pisani art, we have missed your guidance and wisdom over the past few weeks as you recover from an accident, but its great to have you back let me just start off by asking you about this historic fed move and as you said in one of your notes this morning with powell on the tape, the game is now ....