to fall. that tells me and with oil dropping still that there's demand disruption expected ahead. >> all right, ron, lee, thank you, both. the last hour is upon us, kelly. >> i know. i'm looking at you you are the face of this whole story tide going to be again tonight? >> a special at 7:00 i hope you all will watch. and have a good weekend, everybody. "closing bell" right now welcome to "the closing bell." coming to you live from the new york stock exchange, i'm wilfred frost. poise z to turn in their worst week i've come to the delta post today. airlines tanking this week delta down 4.5%. down over 20% just this week the s&p 500 down 2% right now. down 12.5% this week 59 minutes left of this session. >> i'm sara eisen. we are all over the market selloff with a big lineup of guests to help you navigate the volatility including michael novogratz, ian

bremmer, and gabriela santos the dow is down now almost 700 points again coronavirus fears sending the market plunging. the dow falls at one point more than 1,000 points at session lows all sectors going into correction territory which means 10% off their highs. stocks are off to the worst level of the session after jay powell came out with a statement saying the fundamentals of the u.s. economy remain strong and bond yields are plunging again sending mortgage rates to their lowest levels in eight years joining us for the hour, the final hour of trade is lindsey bell from allied invest. also with us is senior markets commentator mike santoli as always to take you through the bell lindsey, what are you getting from some of your clients and what are you telling them? >> our clients are retail clients. they are definitely concerned. so we're telling them first and

foremost, please do not panic. this is why you should have an investing plan in place. and always go back to that plan to reassess where you are and where you want to be and what the timeline is to your financial goals. because remember, we've been through five different corrections in this bull market. this has happened to us before on average it takes about five months to get back to break even. >> so you're telling them to stay in the market >> yes, right now. depending on what your timeline is, yes. >> then what >> then five years you know if you need the cash before five years, you should be thinking about putting your money somewhere else besides the equity markets >> mike, jay powell out with a statement. i can't remember the last time that happened. i think it's pretty unusual. >>s unusual for sure normally the fed is going to filter out a bit of a change in stands through formal speeches or comments, public events, things like that so this obviously is a response to the overwhelming expectation by the market that there would be some kind of response if you look at the way the bond

market is postured right now, it's already pricing in a sure thing over a march rate kus. and you have all kinds of a coordinated weekend response whether that's just coming out of a statement or something else from central bankers i think it makes sense also tactically probably well timed. because there was the danger of things getting messy into a friday close, perhaps. now, that being said, it doesn't really say to the market anything the market wasn't already assuming which is acting as appropriate which is code for we are ready to easy policy in some way if things go the way. >> and it's not having a humongous effect >> it hasn't had an huge effect on markets a momentary bounce and then down again. and yield have not supported equities when that's happened. >> i would just add the timing is very interesting too. you're going into tonight and we're going to get that china manufacturing data right? so that could be a disaster. >> but everyone expects that, don't they >> i know, these guys are saying

we're going to be here to support if it does turn out worse than expected. >> we've got full team coverage of the turmoil on wall street. bob pisani is on the floor with what's driving the drop. bertha coombs at the nasdaq. wilfred has a look at what traders are saying mike has the dash board as always and meg tirrell joins us with the deadly outbreak. bob, first to you on the floor >> we're looking for signs of exhaustion and capitulation. not there yet, but a lot of them say buy. take a look at the s&p powell's comments were good for about 30 points on the s&p that would have been a huge rally on any other day but today, he did specify they would act as appropriate to support the economy. encouraging to see exxon at least finally positive some other names like dow and others holding up a little bit

better today that's at least some signs the selling has stopped for the moment not everywhere not surprising here with the yield still sinking. jpmorgan is doing nothing. none of the banks are doing anything jpmorgan down. most of the regional banks down about 15% this week. we've had a lot of margin calls in the last day or two after about 1:30 and you can see the pressure on the markets, the drooping there. back to you. >> thanks for that let's get to bertha coombs at the nasdaq for a look at the latest movers there. >> the strength today is much more selective microsoft is the best performer of the megacaps. but it's still down nearly 11% for the week which would put it on pace for its worst weekly loss since 2006. apple meantime has had a hard time rallying today. looking at its worst week in nearly 20 years. and not much love for amazon or alphabet which have been beaten down hard and are now both below that trillion dollar market cap level. the semiconductor sector has

provided a bit of strength today, but here we see it dipping in the red as we head towards a close. a lot of these names even with today's rally are off between 15% and 40% from their highs hitting a new low. that one is down about 42% from its 2019 high. wilf >> thanks so much for that now, i've spoken to the head of trading at one of the biggest investment banks in the world. u.s. investment bank just about an hour ago and here are their main takeaways in terms of what's been happening so far this week. first of all, the client flows remain reasonably two way. i.e., not all one-way traffic. markets have moved but still functioning well and doesn't feel like 2008 also most of the selling they're saying is coming from systemic quant funds. true mutual funds are not ready to catch the falling knife and buy. but they and retail investors

are not responsible for most of the selling we've seen this past week now, i ask what they are looking out for that make -- that would make them think it is more like 2008 and the first thing they said is retail money estimated at about $20 billion of u.s. etf liquidation has taken part this week but that is not huge in the grand scheme of things if more comes, that would be a worry. second, keep an eye on central banks. we just heard from one, of course, not just rates but the need to make sure the repo markets, liquidity continue to hold up. they have the tools to ensure that happens finally keep an eye on the fundamentals do we see things like schools shut down, stadiums empty in europe and the u.s if we do, it's a concern because of what that will do to confidence and then gdp in turn. but just in closing, even if we escape that doomsday scenario which is currently their base case, they don't expect a "v"-shaped bounce because of the huge gains we saw last year

without necessarily huge incremental amounts of good news sara, i sort of summarized saying the bad case areas is there's still quite a bit of money that could come into this with selling the bull case is the markets have actually functioned very, very well. headlines like is this a repeat of the financial crisis while the market is not saying that yet. it's functioning well. there's two sides of every trade. we're not legging down >> i also find it interesting when you ask what they're looking for as far as catalyst that central banks were among them some sort of action was really anticipated >> and the point being is things like liquidity, the repo market which we focus on. this isn't just a case of interest rate cuts where some central banks have no room it's a case of just making sure those things are functioning and moving so you don't get a shortage of liquidity on trades. >> i think that one of the key questions that comes out of that, lindsey, is retail next? if the trading is really being driven by quant and that sort of thing, how much of a wave of money is retail going to pull if at all from the market after >> i can tell you at ally

invest, our volumes have been up this week. they're the highest level we have ever seen so the retail investor is being active i don't have the look at buying versus selling my guess is selling. because we have heard the voices of customers getting nervous like i said at the start of the show, we're telling them to not panic in this situation right now. so we are seeing the volumes as well. >> s&p on pace for its worst week since the financial crisis. mike santoli is looking at how that time, the financial crisis, does differ from today and this is important. >> yeah. the context, the reason we're talking about the parallels is because the equity market dynamics in this one week concentrated period have to go back in some respects to 2008. but when in 2008 we're comparing back to mostly after the lehman brothers shock in september and fall of that year when we really saw this cascade lower. but what was going on beforehand well, let me tell you. the market peaked in october of

2007 nearly a year earlier. it was already down 20% in this very kind of managed bear market fashion. then we got the shock and we were already a year into a recession. and it was not really a stock market issue it was mostly dislocations in the mortgage market in correct those were the liquidity issues. the stock market was kind of the tail and not the dog now, look at that compared to the current chart over the last couple of years. and what you see, obviously is this was a vertical drop off of an all-time high in a bull market which has been a bull market for awhile. very similar to this one and this one and so it's not really happening under the same dynamics. i do think the comprehensive washout selling looks like 2011, parts of 2015, and yes, 2008 even some of these washed out measures are going back to things like 2002 which is the bottom of a prior bear market. i also want to show on the credit side, this is a chart of

high yield, corporate credit spreads since before the financial crisis so we saw this little tiny peak right here this is versus the index and you see this cycle has been obviously more gentle. but that was 2015-2016 that was the scare back then when energy was crashing i mean, this is lehman right here it doesn't bear any comparison in terms of what's going on in the real economy or in the provision of credit in the banking system it really just is about the equity market getting blasted in a very comprehensive way >> and mike, i guess breaking that down just one level further, the key difference is in 2008, there were lots of questions marks about many companies potentially going bust and many consumers if they lost their homes going bust and that just doesn't apply at all at this stage. >> not at all. i mean, if you remember at that point, ge wasn't going to be able to roll over its commercial paper. it was unthinkable right now this is a stock market correction much like the three or four

we've had this cycle >> mike, thanks so much for that let's get an update on the latest coronavirus developments. meg tirrell has got the details. >> the world health organization raising the global risk assessment to the highest risk today citing an increasing number of countries. they note linked epidemics in several countries but say most cases can still be traced to known contacts or clusters of cases meaning they're not seeing the virus spreading freely in most communities for that reason, they say there still is a chance of containing the virus if action is take ton detect, isolate, and care for patients early andto trace hai contacts that's what's happening now in california around the patient who may be the first case in the community transmission the cdc saying this afternoon it may turn out the person was exposed to a returned traveler they're working now to identify who came into contact with that patient including family members and health care workers. meanwhile, work forges ahead in the race for treatments and vaccines the w.h.o. saying 20 vaccines are in development around the

world and several potential treatments are in clinical trials with the first results expected in a few weeks guys >> meg, as far as the number of cases in the u.s., obviously good news that we haven't heard those numbers go up. although there are questions about whether the tests are effective, whether they're being used, whether they're readily available. what can you tell us about that? >> yeah. there are a lot of questions about whether we are in fact just not testing for cases that might be here. i think dr. michael osterholm yesterday said it's not evidence of absence maybing the argument we should test more. however, the cdc saying today the reason the number of cases is so low is because the u.s. took such strong action at the borders in the beginning of february and so they are saying that they don't believe that there are more cases circulating here in the u.s. however, they are testing capacity and we might start to see case numbers in the u.s. go up next week, guys we're just going to have to wait and see. >> meg, as always, thank you so

much if you're just joining us, another sea of red here on wall street the dow has lost more than 3500 points so far this week. it's down 13.8% in percentage terms for the week down 3% just today there's the dow heat map today just three of the stocks managing to eke out slight gains. coming up, we'll talk to mike novogratz who ran the multibillion dollar micro fund >> so we've got just about 45 minutes left to go in the session. here's a look at individual stock movers for you shares of wayfair falling after reporting a miss and revenue that matched estimates e-commerce shopping saw light order volume even though customers were active. it also issued weaker guidance the stock down more than 12% meanwhile, shares of beyond meat falling again today on an earnings miss after the bell yesterday.

analysts are cautious on increased marketing expense. that stock also down sharply 17% over the past seven days these six companies combined have lost $1 trillion in market cap. apple losing the most over the past week seeing a $263 billion hit. but if you look at other names, some of the most beloved darlings on wall street, yes, they're huge but mike, look at those declines and the loss of market value >> it was built up in a hurry and it's taken away in a hurry when it comes to that segment of the market, it's obviously not at the center of the economic concerns or the health concerns. it is really about how people were positioned. >> the hurry is that because of all those systemic trading or is that because this is a really panicking move? >> it's probably a combination of the two things.

this market does move faster by the way, the same players and dynamics were why you've had all these streaks when we're going up of no 1% declines in three months and the market grinds higher and higher and volatility goes lower and lower this is the flip side of that action >> mike, in terms of the market's attempts to rally intraday, we've seen multiple days this week apple is a great example it went green for a moment, it's down again >> it's always going to be very twitchy and you have positions under stress and essentially people trying to anticipate the term but not having high conviction at the term so you try and it doesn't work i think all that stuff comes into play. it's very typical of a market that's moved a long distance in a short period of time >> we'll just note that energy just popped positive in the s&p. not used to seeing that and certainly not used to seeing that as the only group that's positive but it is. >> it's flirted with it a couple of times today and that's despite all processes

being down another 4% today. >> just trashed, completely let us down into this. >> let's bring in tony pa pascarella good to see you. >> good to be here >> what do you think has been driefing the key selling factor this week? >> if one could measure our client inquiry and incoming questions from our franchise far and above at the top of the list is of course concerns around the virus. i think we find investors and traders, they're used to confronting earnings volatility. they're used to confronting volatility so the questions of not only the human element but really what is the knock on impact global growth the answer our clients have been searching for. >> if you look at the trade flow as well, how would you classify the bulk of who the seller is? we discussed this earlier. hedge funds, automatic traders

>> very good question. so take a quick step back. it's been a remarkable run for asset markets for the past 11 years. certainly for the past five years, just look at 2019 and so i think what you have is you have a community of investors both retail and institutional. both systemic and discretionary. have accumulated risk. rightly so that's served them well up until last wednesday now you're feeling a pinch the fastest 10% correction on record so we're seeing bits of risk transfer and hedging i'd say from all corners of our franchise. not one cohort sticks out really significantly from the rest. >> is it the type of fear levels now that have reached such a fever pitch that you might look for a bottom >> i would say this, sara. it hasn't felt like a panic. our flow all week has been orderly, clearly just judging from volume, a lot of risk has transferred. i would say the tone of the trading floor has been measured. markets have functioned well the financing market, the credit market, the equity market. nothing dysfunctional, no true

dislocation. so do i feel like we've seen the kind of capitulation that may mark it? we may not see that. >> to that point, the liquidity has remained pretty good throughout i.e., this is not like 2008? >> the word i would use is functional, yes. so very distinct from 2008 2008 really was centered in a credit crisis. to this point, that's not what we're confronting. the liquidity dynamics, the ability of the financial system at large clearly the bond market and equity market have been able to manage the risk off. >> if you compare it to a less extreme example which would be the early part of 2018 when we saw that kind of volatility shock, similar kind of shape of the decline from an all-time high how would you compare it in terms of the trading dynamics? >> i think there's a few analogs i would point to one would be 2011 in the context of will greece leave the eurozone the u.s. debt downgrade.

the second would be been august. and the third would be the january into february period of 2018 they all feel really challenging when you're going through them i think for us the biggest judgment is always number one, the fed. and number two, the durability of the u.s. growth so when the fed is acting, we expect them to cut three times in the next three months we continue to believe in the durability of the u.s. growth, then we think the big dynamics in the game is still good enough in the absence of recession, you typically do not confront bear markets. not all the time, 2018 was a counterexample but typically the history book is on your side. that's why this episode looks more like those three episodes rather than 2008 >> thank you still to come on the show, ian bremmer will tell us why he thinks the coronavirus is by far the most important crisis the trump administration has faced yet. he's joining us in the next hour

time now, though, to get word on the street with 40 minutes left of trade rbc out with a list of high conviction stock picks saying there are opportunities for quality at a reasonable price in a volatile market. it's a list of 29 stocks that includes campbell, duke energy, toll brothers, cvs, and visa for those with coronavirus concerns, machinery is your friend and that, quote, machineries feel like a relatively safe haven. city group out with an optimistic note on apple things are beginning to improve in china for apple, citi says. as production returns to normal, the firm expects investors to shift focus toward overall end market demand. the stock, though, of course still down i guess mike, we touched this a moment ago lindsey, where do you stand on those big cap tech stocks and their inability to mount any kind of recovery >> i mean, they were clearly the lead in takes us to new highs before the coronavirus really

broke us down. it was part of the complacency these are easy names people talk about all the time right? so it was yaed for the retail investors to really jump in on this trade and help drive it higher i think that of course you're going to see the highest fliers fall the fastest in a moment like this. so we want to see these names really begin to stabilize and show some strength again i will note today you mentioned energy broke into the green. just a moment ago. technology broke into the green earlier today. so i think that you are seeing some buying in some of these beaten up sectors and names. >> the way we typically see it happen is the stuff that's just been down the most and is essentially just been discarded. whether it's energy or the travel names or some of the stuff that's just really badly positioned structurally like autos. now, if we get an all tight feeling in the market, they will go up the most percentage wise but for the sustainability of a rally, it's got to be the old leaders. the big growth stocks have not

really brokered the long-term trends and they would have to martial a little bit of a comeback for the overall market to have anything. >> though technology is down not as bad as the rest of the market >> that's what i'm saying. it's still leadership right now. as a matter of fact, the popular trade long, growth and quality and short value and kind of high data has actually still worked even in this downturn. >> for the broader markets, now all the sectors are in the red energy as we mentioned has been flirting with the green over the last hour or two the market is really struggling to find its footing. we've had two or three attempts, many attempts in the last 30 minutes to rally again, we're slipping again. we're down 750 on the dow. >> there's going to be -- there's an undertow of friday has been weak all year even before we were in this tough zone once the market has shown an ability to just slice through all these levels that we thought were significant and not find

buyers, you know, at levels that by the way, we -- today we sliced below the january 2018 s&p level. right now we're -- i said yesterday the s&p gets interesting because it dials us back to the late summer of last year and it undoes this whole trade, this whole rally into the fourth quarter and beyond that said the globe is going to reaccelerate back then we were still in kind of a touch and go on recession, flat yield curve and all the rest of it in a sense, you've removed that entire stretch of economic optimism from stock price. >> just quickly to go back to those levels, the relevant levels of selloffs, when we had the christmas 2018 selloff, how much lower is that to where we are now? >> well, we were down 20% essentially high to low. at the lows today, the s&p was down 15% from its high >> we're down 14.3% now from the high another note out today from research firm benchmark, they have a buy which ships an

ingredient used in gilead's drug remdesivir joining us now john higgins. thank you for joining us >> thank you. >> tell us a little bit about how you're involved with this drug that everyone in the world is watching. >> thank you happy to be here there is a lot of attention, obviously, around the coronavirus and covid-19, developing story ligand is a company that provides technology, drug discovery technologies and ingredients to help make drugs possible we have one particular recipient called captis o rks l that helped stabilize drugs many drug concepts are very good concepts but the active ingredient isn't stable or it's insoluble. it's not available for absorption by the human body in this case with remdesivir, it's highly insoluble.

tremendous efficacy. there's animal data across viral targets. some limited human data. but it's insoluble so in this case, gilead and now some other partners have contacted us they're seeking supply of capisol to help make their drug possible this came on the radar the last six weeks or so. now per our announcement yesterday, we had -- we realized some substantial orders to help service these partners as they build up capacity to run their clinical trials. >> and how significant have these orders been so far and how much more could they be if remdesivir is approved to treat coronavirus? >> the announcement yesterday, we indicated that we've seen an additional 5 million of orders that's several metric tons of quantity and this is, we believe, just the beginning. now, to put in context, our annual sales for captisol across

70 different partners the last few years has been about 25 million to 30 million annually just in the last couple of weeks, a couple of orders have come in for $5 million alone for this one antiviral agent for this particular market now, we're still in clinical development. data won't be out for a few weeks. people are saying probably into april. these are still clinical trials. the chinese government is running trials the u.s. government, the nih is now running studies out of nebraska and gilead just yesterday announced they are opening up two 1,000 patient trials so these initial stockpiling orders are to prepare the clinical zplsupply we do anticipate more orders to help supply not only more clinical trials but perhaps preparation for broader use to treat more severe patients with coronavirus. >> what kind of time frame are

you looking at what's your expectation? >> well, with drug development and first, i want to be clear. remdesivir, it's not our drug. we didn't invest the drug. it's not our drug. we aren't running the trials we a ligand is prepared, we have substantial capacity we manufacture out of multiple sites. we have a very stable source and supply of raw materials. for markets that we do not feel threatened for distribution or trade disruption and we are prepared now potential quantity for delivery to partners that could be substantial well beyond what we've announced just yesterday but again, it's a watch and wait mode we really need to wait to see if there's clear clinical activity. safety and efficacy for this drug as a treatment. and we'll get that data in the next three to six weeks or so. >> john higgins, keep us posted. thanks for joining us. >> lindsey, where do you stand

on the health care and biotech in pla fparticular >> i think it's one of the cheapest sectors in the market usually you see it do well in uncertain times like this. like from june to the end of 2018, health care was the only positive sector within the index. you're not seeing it move as much this time around. and that's probably because there is some wait related to the election and the sector on that you've seen united health care in particular really come under pressure with the rise of bernie sanders. so i think it's a tough sector but i think you can be picky in it biotech is one of the areas that can do well. >> how important do you think hearing from this man at ligand, getting the updates from gilliard around the drug seems like that would be a headline the market could care a lot about. >> no doubt about it if there was anything that was very convincing that it could control or arrest the spread or treat, yes, obviously we're looking for something like that. i don't think the market is on

pins and needles about it, but it would be -- >> things take time. a year and a half? >> right but just the sense that somehow we have our arms around it, that work is proceeding fast on those fronts >> we have 30 minutes left of the session. it's been a wild week, of course, for markets. the dow dropping sharply each day this week. the worst decline being yesterday when we had a nearly 1200-point decline there are the individual point drops. and today at the moment we're down 900 again just an extra little bit of selling in the last ten minutes or so we're down 3.5% in percentage terms today. over 14% now for the week as a whole for the dow. every sector back in the red quite comfortably. we mentioned energy had been positive now down over 0.5% itself. the worst performing sector today as we stand is financials down 4.5%. of course yields continue to collapse >> the yield picture is just crazy. 1.12% on the 10-year that's not even the low of the

session. >> astonishing moves 00 points o think dow. coming up, we will have much more on this week's massive selloff with mike novogratz. as we just said, 30 minutes left of the session. here are the key things driving the action coronavirus fears sending the market plunging. the dow falling more than 1,000 points of session lows and getting close to those again jay powell said the fundamentals of the u.s. economy remain strong and oil and bond yields plunging with oil turning in its worst week since 2008. let's get to eamon javers in washington with new commentary >> that's right. just give you a sense of how the information flow is going at the white house. i just ran into senator lindsey graham of south carolina here inside the west wing and he's about to fly with the president on air force one to a rally in south carolina. he told me that on that air force one flight, he's going to try to set up a conference call between the president of the united states and tim cook of

apple. because lindsey graham believes that apple's got some of the best intelligence out there about what's going on on the ground in china in terms of the virus. and also in terms of apple's production, which facilities are able to get up and running again. which ones they're not and why he said tim cook is one of the smartest resources out there and he wants that private sector expertise to go straight to the president of the united states so the president is leaving here in about an hour's time and lindsey graham says he's going to try to patch him through to tim cook on the way to the rally. an interesting sense of the proo private sector and public sector feedback loop. >> interesting no doubt tim cook would see that on site. i don't know why graham is needed to patch them together. they have a relationship already. >> that's right. lindsey graham is a facilitator and close to the president i think if he wants to make that happen, he can make it happen. graham told me he also wants to hear from tim cook he wants to know what he has to say on those issues. >> i think tim cook's been saying that china has been

looking a lot better and that the supply chain is doing better eamon, "washington post" is running a headline white house weighing tax cuts to address coronavirus fallout. have you heard anything about the is >> i saw that headline just cross the wires here a second ago. what i'd say about that is earlier here today somebody told me that the president is getting a lot of input a lot of ideas are coming across his desk today and yesterday in erm thes of what to do about the virus. this person put it to me this way. a lot of people are pitching ideas to the president that are the ideas that they preferred anyway and suggesting that, you know, the thing i've been advocating now, we should do it because of the virus. right? so the president's in a position now he's going to be sifting through a lot of these proposals that are coming across deciding which ones are really appropriate for the virus and which ones are sort of people attacking their idea onto a virus train here, so to speak and try to get issues done on things they've been active no indication of that to my reporting. but they are always talking about tax cuts here. and have said they want to put together some kind of proposal by september called tax cuts 20

which would be more of a campaign document to go out on the campaign trial in the fall and talk about the re-elect saying that's something they want to do in the second term. >> eamon javers, thank you dow down 861 interesting that the hint of fiscal and now monetary stimulus is not doing anything to get these markets up i mean, first jay powell and the fed come up with a statement saying we'll use all the tools available. not really getting it done we have a headline here the white house is weighing tax cuts that, too, not getting anything done >> as we've discussed, i think the market also priced in these rate cuts. it's not like the statement by chair powell was hugely incremental until we actually see them delivered we've got a market flash on constellation brands rahel has details. >> of course moving higher but still in the ed are. this is as the company disputes claims of the impact of the coronavirus on its corona beer putting out a press release

saying based on recent trends, sales of corona extra remains strong with sales up in the u.s. per the latest four-week period ended february 16th the ceo saying it's unfortunate that recent misinformation about the impact of this virus on our business has been circulating in traditional and social media without further investigation. you may have seen that reporting or the social media posts saying that consumers would be less likely to consumer coronas because of the coronavirus their trends show that's not true you can see shares of constellation brands are down about 3.4% back to you. >> thank you so much let's get over to mike now for more on investor sentiment as things stand. >> so many ways to point to extremes and investor sentiment. to a negative, skeptical place just one of them here. this is coming into today on the nasdaq 100 now, nasdaq 100 down another 2% since this chart was made. but what you see here is

bullishness in this survey daily sentiment index again was around 10. and if you want to look at previous times when we were somewhere in this zone, i'll point to them right here and what you'll see is it's somewhere in the vicinity of when the market tries to stage some kind of a reflex rally. so this in particular, october of 2018, we had a really big selloff from early october that year high was in september. people thought it was going to be like this we did have another down lag similarly 2018 and then obviously i believe that's right last year that we did get pretty timely signal on this so it just shows you the ground work is being laid super oversold most stocks are down a ton and sentiment on a trading basis is very negative although probably not had time to adjust. obviously it's going to depend on exactly how we get information on real economic fundamentals it's not all about tactics and

sentiments but this does show you the ground work for when the market probably maybe early next week is going to be prime to stage a rally from some level. >> how do you translate that to retail investors, lindsey? >> i think you're seeing a lot of different indicators showing that we could be poised for a temporary rebound at least because to mike's point, that chart shows you you get down to these levels, you can get a bounce and you can go back down to retest to confirm that we can move higher or lower from here look, over 70% of the companies in the s&p 500 are in correction territory. the vix reaching 49 today. that's and area where we can start to see the fear begin to shake out. it doesn't mean we're at a bottom, but it makes high fear levels exactly. so it gives you an entry point, i think, at least into the market even if we do go lower, you kind of are legging your way into the market i also think when you look at the move in gold, down 5% since your high. >> what's that about since its high on monday

i think you're starting to see signals. even the action today, the energy sector, technology. sectors that have been down so much in the last week, people are willing to buy into these. i think we're getting ready for a near term bounce >> because treasuries are the real goal. gold is nice to have only at some point you want to redeem it for dollars if things get really bad >> a couple other theories one, people want to find something that's up to buy some of the stocks that's down. >> liquidation in general. >> but we are having a high level of confidence in some fed easing if you see that, then this wild card safe haven is if things are going to be stimulating. >> you're saying you'd rather see treasury yields bounce or at least go up. >> i don't think gold is going to be really the timely signal of a turn, although it does make sense it was strong going into this phase you had profits in it. so you're seeing a pull back. jay powell putting out that statement last hour saying the fundamentals of the u.s. economy

remain strong. let's get to steve liesman >> let me get to that in just a second i do want to point out, sara, for your edification and information here, while stocks look to shrug off the announcement, there has been a sizable move in the outlook for the federal reserve as priced in the fed funds. futures market take a look at this. i can truly say i've never seen anything like this before. there's now 100% chance of a - 50 basis point cut thavs not on the table a few days ago it was in the 30s, 40s, 50s after powell's statement the market is baking in a 94% probability of a 50 basis point cut when the fed meets in march. dw 68% probability for june and even a fourth one as soon as

november with the 52% probability. just want to remind folks of what powell said making that extraordinary statement coming out at 2:30 during the markets quote, the fundamentals of the u.s. economy remain strong, however, the coronavirus poses evolving risk to economic activity the federal reserve is closely monitoring developments and their implications for the economic outlook and here's the operative phrase here we'll use all our tools and act as appropriate to support the economy. so sara, the back story here i think is the fed was sitting there watching things develop that maybe said, hey, we are paying attention we are red adyo make a change. i think they want to play a bit for time here. how many cases are there in the states i think they would love to have the two weeks or so to meet up

its mind without what to do. i don't know if it's going to get there. >> sara, we were discussing how that statement came out, didn't really change the educational background market. it has changed the dollar move a lot. the dollar's weakened since that statement came out >> and dollar/yen is now -- dollar's down almost 2% against the yen just today about half of that coming in the last hour or two. i mean, go ahead i just want to throw on the table something that we've been discussing which is what if the level of the fed funds rate is not what bothers the market. what if what the market wants to see is testing kits out there and some data about how many people in the united states are infected or could be infected through the testing that hand happened i would wonder if the market shrugs off this idea you have to wonder if there are other places the market needs to turn for assurance >> well, i think for sure,

steve. as we've said for a long time, this is not a financial factor that's hit the markets it's a biological one and a confidence one i do wonder, though, steve we had this debate a couple of days ago, you and i. particularly now we've had this statement. does the fed have any choice but to cut perhaps now as you said by 50 basis points because they teased the market just in the last few hours and clearly over the last year and a half, they've delivered to the market just on fears, not just waiting for the data. >> i think that's right. i think the data is in the market i think the data is in the outlook. i think the idea is that it's hard to argue given what's happened to stocks given the concerns among corporations that there is not some basis for material reassessment of the outlook. i've been surprised that so many fed officials and guys in the back if you have my wall on this, that bullard today seemed to lean against the idea of a rate cut until there was a global pandemic. that charlie evans, the chicago

fed president and there it is right there. well done in the back. there's some of the comments that have been made. all of which have essentially leaned against the idea of a rate cut rate cuts are a possibility if there's a global pandemic. evans says it's premature until we have more data and one says too soon to even speculate well, i think powell may have changed that just a bit by saying that we were ready to use our tools here >> steve liesman steve, thank you sbl pleasure let's turn now to the banks. wilfred, you've been taking a closer look at their performance this week. not pretty like everything else. >> not pretty and all this talk of rate cuts hurting it further. just want to reassess which of the banks have fallen the most over the course of the week and why. banks as we said falling sharply. the bank index is now down 17% this week. it briefly touched bear market territory down 20% from its january highs during the session. the two down the most of the big

banks are citi and bank of america. both down about 1% th9% this wek the main reason is exposure to asia but by far the biggest factor is interest rates which as we all know have collapsed this week, this year, and banks like higher rates. why? because it allows them to arbitrage better between the rate at which they charge borrowers and the rate which they give to savers. here is the percentage of revenue for each of the banks that comes from interest-linked products from net interest income as we call it. citi towards the top of that list again and bank of america also above 50% seen as the most interest rate sensitive. the other factor i mention, guys, that played into this was who had done the best last year was also suffering this year and today it's interesting the two worst performers are wells

fargo and jpmorgan that hadn't sold off as much and jpmorgan down 7% now over 7%. down $9 almost that is extraordinary. i've never seen such a big move like that in jpmorgan. so still citi and bank of america worst this week, but jpmorgan playing catch up this session. >> there's a slinky going down the stairs you know, the two big bank stocks go down, the other flops down it does show you that when you get into a selloff, multiple days, there are no kind of sacred core positions that you're not going to lighten up on >> financials now the worst performing sector. lindsey, last chance trade >> so in this type of market, you know, a lot of people including ourselves are going to say you've got to look for companies that are high quality. with solid dividends, really, to get you through this period of uncertainty. because even if we do see a bounce next week or near term, i think what you really need -- what we really need is

confirmation that we're past the worst of this coronavirus situation. and we need to have clarity on the economic environment what i've been looking at really is j&j it's been down 13% since its high if you missed the run up into the end of last year, it was up from the end of october to that february 5th date. it has a 2.8% dividend yield which is above its historical average. the valuation has come down. cash flow credit metrics look good in this name. of course they have the litigation out there with the opioid crisis. and the talcum powder situation. but i think it's one that could be good to find some defensive exposure in this type of market. >> all right we've got 14 minutes left in the trading day. dow was just down a thousand commercial-free coverage of all the action going into the close. >> cnbc senior markets commentator mike santee lee is

here -- also a check on the broader markets. continuing their selloff on pace for their worst weekly loss since the 2008 financial crisis. we're down 3.2% on the dow close to 14% for the week. the volatility index above 48 at the highest level in the session. it's above 47 at the moment. highest level since august 2011 during the session mike, break it down for us in terms of what we're watching into the close we're just a couple of hundred points off them. >> we are. fridays are the least common day that a selloff bottoms it's not that it ever happens. it has been in significant moments. it's the least likely. you don't typically want to see the market close on a friday unless you really are looking far final purge the next week. so those are tactics, right? that's the dynamic there i think what we're really seeing

is this sort of liquidation through this year, through this week has started with people feeling over-exposed to stocks when the outlook changed suddenly and has now spilled into selling because we were selling. and the volatility being up manes i play smaller and take my bets off the table that's what's happening right now. arguably we're in an overshoot phase. we came into today saying things look washed out. this is usually where at some point of the market tries to bounce however, those are the same conditions i'm not saying we're crashing but the market doesn't crash from a strong position it does it when it's already so unsettled. >> john, how are we settling into next week >> this weekend is probably going to be key to see if any of the other central banks join what powell said if we have a g7, g20 statement that says we have dollar swap lines, provide a tremendous amount of liquidity.

>> how much would that help on a global crisis? >> i think we kind of rolled over from a public health crisis, right? there's not a public health crisis in the united states. there's 300 million people, you know, less than 10,000 are being probably watched right now but we're seeing credit spreads blow out the vix is at 50 and the market is telling us it has a fever, right the market has a fever right now. so whether it takes a week, whether it takes five days, a month, we don't know how long it's going to take before everything shakes out. but we have seen credit spreads blow out we have seen vix blow up to 50 we have seen central bankers say and there's not a problem. you know what? the market is saying there is a problem. we need a coordinated message from somebody. we didn't get it from the cdc, really we didn't it from hhs. so we need really everybody on the same page globally that says we have this under control and we know there's a problem.

we're addressing the problem and that's it. >> shares of american airlines sinking to all-time lows phil lebeau with more on how it's being impacted. fr. >> it's the entire sector right now. down another 6% to 9% depending on the stock today you mentioned american it's down more than 8% today meanwhile, southwest the least affected today of all of the major airlines here in the united states. for united airlines, it is reducing its flights to japan, singapore, and korea take a look at iag, the parent of british airways today it said it cannot give guidance for 2020. why? because of the uncertainty created by the coronavirus under major pressure today then you have alaska airlines. it is waiving change and cancellation fees through march 12th joining jetblue in waiving those fees you're primarily talking about people who are flying here in the united states. a few flights that might go down

to the caribbean but that's the united states so the pressure continues for the airlines >> why don't they get any reprie reprieve >> because nobody has any confidence they know how much traffic is going to drop off 37 remember that's the bread and butter for delta and united. if you see things like the geneva motor show cancel and nestle continue to say no travel at all what's going to happen with these transatlantic flights? we have yet to see them curtail that traffic that's what everybody is focused on right now >> also the bread and butter for international airlines group why they're down 24% for the week mike, these guys are suddenly very cheap >> yeah. certainly absolutely cheap if they're anywhere near.

the great operating leverage they enjoy when planes are full and everyone's busy. and businesses are spending. it's just running in reverse right now. so i think it's a difficult place to step in if you want to say i want to bet on a comeback. how many big companies are really just starting to say we're curtailing business travel right now. and so that's going to be an overhang >> we also don't know what it's going to look like in this country and therefore we don't know what the decisions of consumers are going to be. right now domestic travel is fine >> for now >> it's a very difficult decision to make right now especially because i know many corporations are really telling their employees, you know, ixnay on the international travel. but it also becomes the fear of the consumer too does the consumer get scared to get on an airplane >> we've got seven and a half minutes left of the session. we've recovered a little bit we're down now only 720 points on the dow

millennials are turning to one group of stocks. kate rooney has the latest >> millennial traders on some platforms. now, quote, plague stocks. or names that benefit from this outbreak a lot of small cap biotech names on that list drug developer mederna saw a hundred times its normal buying activity spoke to some other retail platforms as well. apple and tesla were bought by fidelity -- also a quote by the dip mentality. and a significant increase in volume and virgin galactic and alpple are still on top >> thank you let's check in on how consumer staples have traded this week. that sector getting hit hard but it is actually the best performing sector of the week. one etf attracts those stocks, xlp. that's down over 10% the last five sessions. some individual names that have

multinational exposure, procter & gamble, johnson & johnson. those stocks down sharply this week, lindsey. which raises the question of where to hide in this market you think consumer staples, they're defensive. they've held up. down 11%, 12% is not exactly holding up >> yeah, the problem is their exposure internationally but they do have the 3% dividend yield. i think if you can find some of the consumer staple names that are more domestically located, you can find some good opportunities in that group though and i do think that when you look at these epic corrections or even bear markets, staples is one of the sectors that will do well >> clorox is doing really well we're definitely putting money to work. i won't say where. but our portfolio trades at ten times before the market has a draw down. so having a draw down of 15% -- >> in staples. >> in stocks in general.

not in staples in some of the names we own. i can't tell you what we're buying right now but just to say, as buffett would say -- as bill would say, we're buying some stay at home type stocks. we can say that. having a 15% drawdown is a buying opportunity right? if we go down to the 2018 christmas eve low, that would be 30%. but we'd still kind of be still above where this whole thing started. so when you get a chance like this, people dollar cost average. for the individual investor, it's not 2008. it's not time to panic now you have a drawdown. if every time off 15%, 20% drawdown, you put in more than you normally put in, that is going to work over 20, 30 years. and we're value investors so we're looking three to five years out. every time the market goes down like this, we're looking for companies with good balance sheet that have low multiples, that have good growth prospects, and we could actually put a position on it >> how defensive, though is your

posture right now? >> i would say we are more defensive prior to the drawdown. with jim cramer at the super bowl, this is a game changer on february 2nd the market didn't crack until the 19th when bernie sanders won two primaries. wein the g20 come out and say growth was going to slow and we had a monday gap lower. once you have a gap lower, it's like a gap higher. market gaps higher and then it goes, you have a gap lower, we just cascaded down there's no uptick rule, right? so all we're seeing is cascading lower. we're seeing guys raising cash who everybody kind of got trapped at the top right? we're at 3400. that monday we gap lower there was a lot of selling for guys who did not get out of 3400 >> a little bit of a recovery in the last 15 minutes or so. we're now down only 566 points on the dow only 2.2%. the low of the session was down over a thousand. and we were down over 900 just moments ago. mike, before we get to the

internals, an encouraging bounce into the close here. >> it's certainly encouraging not to close flat out at the lows but i don't think you really honestly as much as it makes -- it's tempting to scrutinize every wiggle, the market is going to be so jumpy and animated i would say a net positive mostly because people coming into the weekend, the fed does 50 basis points or something like that. something is within the realm of upside surprise as well as downside shock i think it's a matter of trimming back some of the bets that are deeply in the money right now which is anything bearish. >> for the internals >> a little more two-way action at least if you look at volumes. we've had i think three 90% down days first of all, enormous volumes that's one thing you don't see 7 million shares on this, but you know, five out of seven stocks down is better than nine out of ten. take a look, though, at new 52 week highs and lows. you would expect this to be

massively lopsided but that is a tremendous washout number almost more than 900 stocks making new lows. only 18 with new highs that is another deeply, deeply oversold measure right now then the vix, people keep referring to it. it did get above close to 48 or a little over 48 at the highs. it's still in fever mode it's still not telling you that this wave has passed however, if it does close three points off the high, some people are going to say maybe that's a hint that we've crescendoed for now. >> we've got just under two minutes left of the session. we are down 13% for the week as a whole on the dow rick santelli? >> even though we have really solid data all week and today a solid michigan, obviously it max little difference. as it sits it's down 14 basis points on the week twos are down 19 look at one week of tens, here as we hover here at 1.12, we're

down 35 basis points and if you look at what's going on in 2-year for the week, they're down 39 basis points month to date because we are wrapping up february, this is down 37 basis points and do remember the dollar index is giving up a group of gains as well bertha, before the bounce, it looked like the low since halloween. now early november doesn't make me feel much better >> microsoft bouncing here into the close along with alphabet. but you take a look at these stocks this week the biggest momentum movers that have brought us to new highs on the nasdaq they are selling down hard tesla, though, still up 60% for the year biotech is the relative outperformer not as bad with regeneron. the only up for the week bob, over to you >> hard to believe, but we have rallied almost 300 points in the last half hour point out a couple things

moving exxon finally showing signs of life after an absolutely brutal week some of the transports showing signs of life like white air for example. also moving to the upside. there is the closing bell capping an historic move a 4,000 point move in the dow jones industrial average closing bell dow is going to close down about 13% for the week the s&p 500 down about 12% well, that's a wrap on an ugly week. welcome, everyone, to "closing bell." i'm sara eisen >> and i'm wilfred frost along side us still mike santoli. >> on the plus side, if you're a bull, we closed off session lows here today dow down only 347 and i say that because at one point today we were down 1,085 points but that does make it the sixth neckti negative session in a row and

make it the worst week for stocks since the financial crisis for the week the dow is down about 12.3%. s&p 500 down about 11.4% it closed the day off 24.5 points down 0.8%. the nasdaq composite which had been doing better all year but also gave up its gains for the year it's down 4.5% for the year. closed actually positive wow. >> got three sectors came right back lower and then closed positive again. let's just check out the index of small caps which also had a tough week along with the rest of the market. today closing down 1.4%. >> three sectors on the s&p got into positive territory by the close. energy up over a percent technology and communication services all part of that big rally that bob pointed to in the last 20 minutes of the session coming up, mike novogratz is here to weigh in on this week's sell off and where he sees opportunities in the market. we'll also hear from eurasia

group's ian bremmer on how much a hit the global economy could take it has been a brutal week for the market take a look at the dow's daily point drops this week. the worst week since the financial crisis they were big and they were severe we had two more than 1,000 point closes for the dow tuesday was down 879 points. every day was lower. joining us to discuss is gabriela santos. they manage $2 trillion worth of assets still with us is john from value partners and lindsey bell from ally invest first to you, mike after a rough week, did close off the lows and got into positive territory for the nasdaq what does that mean. >> it means the rubber band was stretched very tight coming into today, you had de deeply washed out market it also is the last day of the month. so i do think if you were correct in leaning negative all week, you want to just knit that

up and take your profits going into the weekend as where we're talking about potentially official central banks trying to interrupt this vicious cycle. so i think all that stuff together end of the month if you were going to rebalance, you did it on the close because you had a great opportunity to how well bonds had done that's all i would say it's good to finish off the lows on a friday. but essentially every rally is sort of suspect here and it could be ripping ones and you could have a high burden of proof this is working through. >> what's your message to all the retail investors that have been phoning in all week is this a sign we rallied into the close that again, things go both ways when we see this volatility >> right exactly. also don't get back to being complacent either. because even though we had a nice move off the today's lows and maybe next week we get a bounce at the fed or central banks around the globe, make that coordinated movement.

there's still plenty of things needed to watch out for. that's first and foremost the spread of coronavirus especially here in the u.s. that's going to unnerve investors, watch the levels of the vix. see where we go from that. the 10-year obviously that's a huge data point that we need to keep our eye on. we want to see some stabilization there. i don't think you can get stabilization in this market until you have stabilization in the bond market. >> so we're now about 13% off the record highs gabriel gabriela, the magnitude of the declines, how does it stack up for you given some of the uncertainty and the risks and the potential economic pain that we're facing as a result of this coronavirus? >> so it's been absolutely a u.s.-led selloff this week and to me that says more about how stretched u.s. valuations were relative to the rest of the world. u.s. markets hadn't really corrected despite the emergence of the covid-19 virus. and we had already stretch valuations coming into this year so to me it says much more about

the need for multiples to come down to reflect the greater uncertainty around the impact of covid-19 on earnings as well as the economy, of course but it says more about how stretched valuations were. >> john, what are you looking at for over the weekend whether it's data or announcements that could give you confidence to go back in a meaningful way >> i think we saw a good sign like mike said on the close. the vix came down. we saw money move into carnival cruises which was a stock, the market was down 15%. some airlines and cruise lines were down over 50% because of this virus so the markets are a discounting mechanism. we have china pmi. hopefully lagarde, i know she's a friend of yours. >> i don't know. you're waiting for her to do something? it's not a shock and didn't seem willing to do something. >> not that they have to do something, but the market, you know, words matter, right? even for central banks and i think powell coming up today and saying what he said

was important. especially when all the others today were not saying that 3 that they look like they're on top of it. but when it comes to actual comfort from the problem that's ailing, don't you need to hear from officials places like korea or italy where we can tell what's happening with the spread, how much -- what the mortality rate is, how much it's changed. that sort of thing >> yeah. china, things leveled off. singapore, i think things have -- >> it's hard -- >> exactly but singapore, things have gotten better. europe, the case is still lower. already discounted things getting worse. now like you said, if there's an antidote, something come out of an israeli drug company. they're fast tracking everything at the fda to have a vaccine or antidote those things are positives >> it's been a crazy week on wall street.

let's check in with bob pisani >> i just want to highlight the remarkable 400-point move in the dow in the last 20 or 30 minutes. we saw exxon was positive. we saw microsoft, nike, visa, caterpill caterpillar, united health all move what's remarkable is right across the board didn't matter what sector you were in. take a look at the movements for the week american express down. but boeing, 17%. united health, 17% jpmorgan, 16%. the banks were especially poor performers overall we did have new lows today in a number of the big names. comerica, u.s. bank corps, wells fargo, and zions mamong them a big hair cut, a lot of trillions floating around. i like to use from the february 19th high, u.s. stock market capitalization was $33 trillion.

ended today about $29 trillion that's a decline of about $4 trillion 13% decline in overall numbers there you see 13% down in market capitalization that's an awful lot of money there, folks $4 trillion in about two weeks guys, back to you. >> yeah. wipeout. nasdaq down 10% for the week but quite a comeback into the close. bertha coombs has more >> up two of the last five days but that didn't help for a gain. and some of the most bruising losses coming with the airlines. american airlines hitting a new low 37 tesla's move has been so big this year even with this huge pullback this week. take a look at the year to date compared to some of the others apple right now is the biggest drag on the nasdaq 100 netflix has really outperformed this week as people look at those stay at home stocks. and as you look at the year to

date movement, we've seen higher highs, lower lows this month really exacerbating the movement that we saw in january particularly when it comes to the chips. the out-performers have been relatively the software stocks zoomed the best performance there. that's the video conferencing firm up 50% year to date 37. >> just wanted to come back to what you guys have been telling clients. during what has been a torrid week what's the main piece of advice? and over the weekend, how should they be thinking about their portfolios >> we've been speaking and we speak to a variety of clients. and we've been telling them what an important gut check this week has been so we have some clients whose first instinct it is should i be selling right now. the important thing to check is are you -- do you have an exposure to insurance, to core bonds? we've seen yields fall dramatically treasuries do still do the trick when it comes to mitigating the

downside we have other clients whose first instinct is to ask should i be buying right now? and then we'd be taking a look at parts of the portfolio that might be understood weight, things we actually like like emerging markets, value stocks and then add over the next few weeks. but it absolutely depends on risk appetite and time horizon >> what's your ratio to people asking if they should buy versus people asking if they should sell >> we've been hearing both, sara, honestly and that's why it's actually a very personal decision and not a blanket recommendation that we can name >> i have a funny story. basically the way it goes is i have friends call me and say what's going on with the market. then i have relatives call me and say what's happening with the market then when the mother calls, that's the bottom. >> so when did she call? >> she called me last night. >> 3:45? >> no. last night >> we usually say when we get a lot of company from our colleagues and friends and other news networks. which they have crowded into the new york stock exchange today. that means public awareness is

pretty high. >> by the way, that's the same reason that a treasury secretary calls the banks, that's just another sign of the extremes we've gotten to and the kind of psychological capitulation i'm not saying it's in right now, but that's kind of what we're signaling. and with the fed's move, i agree. it's not going to direct itself at the core issues but it's a matter of offset. and it's making sure that it buffers the financial implications of a kind of runaway panic type >> the energy sector crushed this week. let's get to brian sullivan who has more brian, a bit of a repeeve rievet the end of the week. >> maybe john's mother called the oil market as well she should call exxon and chevron and everybody, john. you know what i mean all right. let's talk about the week that was. i'm trying to take off my tie because it's that kind of the day. oil had its worst week since 2008 we're at 45 bucks a barrel

losing more than 15% the oil stocks, they got whacked as well. you look at the declined in exxonmobil, chevron. there's two points i want to make and you can follow up or not. here's the thing number one, if you look at the xop etf against the price of oil, here's what's fascinating no way am i defending oil stocks or saying anybody should buy them it's not what i do but oil stocks as a group are trading at a cheaper price now than they were when oil was at $26. and that's probably because of the heavy debt loads oil is not at $26. it's at $45. but oil stocks are trading less. here's the other random but interesting stat for you guys. oxy, it bought anna darko for $57 billion last may

occidental's market cap is now $28 billion. we did get a little pop on some of these names i thought those were some stats that you can wow and amaze your friends with at john's cocktail party tonight. >> that's right. >> brian, thank you. i mean, one of the important points here is that energy was getting beat up even when the stock market was hitting record highs into this big selloff. >> that is true. right. so it really is much more of a longer term kind of ser render trade that's happened here you know, again, it's hard to call bottoms based on one or two days' action but it does seem there are many sold out parts of the market where essentially people feel like they can't touch or consider them. and energy is absolutely one of them i do think that you'd want to see the rest of the non-equity markets start to come into line. you want to see yields up. you would like to see a floor in

crude and all these other things that have been related to what's been going on. >> john, energy stocks cheap enough >> yeah. one point people neglect is energy, obviously oil prices were down. but the whole pivot to esg stocks kind of put a damper on energy stocks. right? with people saying they're not going to lend to them, they're not going to have them in their portfolios we're looking at some energy stocks i will say that. i think that -- again, the biggest thing with any of these stocks that we're looking at is the debt load. right? the debt to market cap is important. especially when you secret spreads up when the tide goes out, you see who's exposed. if you're running a corporation and just like a hedge fund, if you have ten times leverage which means if you have a lot of debt on your balance sheet compared to your earnings, that's a problem when the tide goes out >> for energy companies, too, it is really about the price of

oil. at $45 a barrel, that's pretty low. as brian -- sorry, brian as he said oil prices are down so significantly this year. earnings for these guys are so highly coordinated to the price of oil and the energy sector in general, it's 3.5% of the s&p 500 now. so a lot of, you know -- >> the worst performing sector this year. >> oil down 26% for the year thank you, all good to have you today the dow closing lower by 357 points today down more than 12% for the week. joining us now by phone is mike novogratz, the founder and ceo of galaxy digital. thanks for calling in. mike, you know, you were sitting here i don't know. when was that? >> two weeks ago >> you were saying you were super bullish because you were expecting big bazookas

are you still feeling that way >> i'll tell you what. you know, sunday night i was out at steven jackson and got a call from any guy saying bernie's surging and corona is getting worse than we thought. i think, you know, pre-sunday, everyone was looking at corona as a china issue and the china stats are slowly getting better looks like it's peaked there who knows if you can trust the data but that's the consensus and on sunday the world changes. if this thing goes viral all over the world, that's going to scare the heck out of people and conferences started being, you know, canceled i don't know a person in new york city that hasn't canceled a trip somewhere so that fear took over and the bernie surge you can't discount the bernie surge. it felt on sunday. who noes after super tuesday how we feel. and it just started a fierce

cycle. it feels like the potential bottom today with s&ps down at 50 below but we'll see. >> if you do expect the bazookas to come whether it's from the chinese central bank or now from the fed, how fearful are you that that's now priced in? when you look at where bond yields are or you look at the fact that the shenzhen index is actually up this month and up this year already. it's as if the market is already priced in. >> but remember, china's a special place in that it's illegal to short the government can buy. they're jamming lots of liquidity and doing things to promote the equity market. so i don't think it's a fair assessment listen i had thought gold and bitcoin, you know, would do well. and they did do well until people just got scared out of their wits then it became just get me the cash so gold selling up a hundred dollars when indeed we're going

to have more liquidity from central banks and worse fiscal policy, it's a great indication of this was just a panic risk-off and so i do think gold ends up bottoming somewhere and heads back up. and ends the year much higher. i think the same thing with bitco bitcoin. but we went from manageable markets to end of the world type fear friends talking about depression, global depression. and you know, when that fear gets into the market, people thought it could crash and i think, you know, listen. the fed came out, i think pretty proactively and said we're watching and we'll cut rates broadly think they've given us at least one cut in march and maybe 50 you know, trump's guys said we're going to do a tax cut. >> they didn't say that. there's a report they're looking at it. >> right okay but that -- quite frankly stocks

will rerally once they finish selling off. the one thing that scares me a little bit is if you look at growth towards value which is correlated with the s&p of the nasdaq, it hasn't rolled over at all. everything sold off together so the big quant funds haven't had terrible weeks usually on these selloffs, the big multi-strapped quant funds get destroyed. and i'm talking to a couple of them down 60 basis points. down 60 basis points nothing like you've seen in other past selloffs. and so we haven't had as much damage in the internal of the market that you could have >> mike, to your point, you said you actually think gold and bitcoin will rally again and end the year higher. that's not particularly bullish for equities, is it? >> you know, listen. it -- when you -- when you -- again, the markets are discounting. so when you kind of wash out the

excess of loans and you start the we're going to stimulate the heck out of the economy again, markets look forward so i don't think we've seen the high of the year in equities unless corona really puts us in a depression but if what happens in china happens in all the other countries, and it hits a peak and gets better. i think this will prove to be a great buying opportunity >> i just wonder how you can say that you know, it feels like the market is waiting for some more concrete news on how this is developing either outside of china, you know, what the mortality rate is going to look like, how many people get infected in this country what consumer behavior is going to be. these are all such unknowns. >> see, when it originally came out, i think paul was on your show or someone's. he said no one should have risk on for three weeks

where he was wrong is no one should have had risk on for six weeks. we all got kind of lulled to sleep that it wasn't so bad. but it's been six or seven weeks and it's now looking bad i think we're not going to know for awhile how the u.s. plays out. how europe plays out you know, do they cancel -- people are talking about the olympics if it gets worse, the markets get worse. i'm not poly annish, but i do know ibsryes of finance are going to hit the market with a lo it also should mean the back end of yield curves. that seems ludicrous finally saying we're going to be so i do think the big trait is going to

be short fixed in k. >> mike, thank you for joining us >> mike, thank you. >> all right >> mike santoli, just wanted to follow up on that. the point of central bank action to come. going back to what steve shoed us earlier, the markets are expecting not only a 25 point basis cut. almost 50, a certainty >> i think it certainly creates support. you don't know if it necessarily -- first of all, it's priced into the bond market we don't know if it's priced into the stock market. if you look back to last year, the market ran ahead of the fed the entire year. the market was pricing the fed essentially forcing its hand and before you got those cuts, the fixed income market was already there. and then the stock market still managed to get some benefit. at least seemingly from the actual three cuts. and then we're done or going to be on hold for awhile was actually the bull case

>> how about that little gem that he just left us with that the opportunity of the year is going to be short fixed income that's a tough call to make when there's such a wave -- >> the widow maker trying for it again. i mean, i do think that there's a case to be made. first of all, everything you would look at in terms of the way that fixed income is positioned the speed and angle of the rally in bonds just exactly how people love them right now and everybody's been -- the whole world has been forcing their way in it's been very, very tough to make that work there's such this undertoe to yields >> i remember when the 10-year was an entire percentage point higher and the likes of jamie dimon said yield is the bottom >> warren buffett has been telling you to not think that bond yields are too low for years. and a lot of smart people have and it's simply not played

>> don't miss the cnbc special report markets ip 7:00 p.m. eas. they'll discuss all of this. another major selloff on wall street as coronavirus outbreak fears spread. let's get the latest of the virus. meg tirrell has the latest ton that >> this was the week we saw the virus go global. new cases in south korea alone at more than 500 today surpassing those in china. more than 50 countries now reporting cases. nigeria, the first in s sub-saharan africa both country's cases travelers in italy the u.s. expanded testing guidelines p this as health officials investigate the country's first potential case of community transmission in california and finally a warning this afternoon

from bill gates. in the new england journal of medicine, he writes, quote, many the past week covid-19 is behaving like the once in a century pathogen we've been worried about. saying in addition to addressing this, billions of dollars must be invested in preventing future pandemics. guys >> meg tirrell, thank you. let's take a look at how we finished up on wall street today. that was a pretty big rally or comeback into the close from the lows of the session. the dow actually ended lower by 357 points at one point, it was down 1,085 points and wasn't until the final few moments of trade that it just climbed right back up there. the nasdaq finishing in positive territory just barely. the s&p sp down 0.8% on the day. the russell down 1.4%. still, though, a brutal week of selling. relentless selling down seven days in a row. worst week since the financial crisis for stocks.

10% declines back to mike santoli for a look at the damage. >> so it has certainly adjusted equity valuations lower. especially relative to bond yields we've been looking at their decline as a negative signal to what it means for risk appetites and inflation and growth outlook. however, it does if earnings can hold up by any stretch make stocks look on a relative basis attractive even though they're not absolutely cheap this is a measure of the equity risk praem yums. so this would have been late 2018 we were a little bit better there in terps of equity valuations and at the bottom of the selloff last summer. also cheaper in early 2016 when we had that sort of jamie dimon bottom in the whole thing. and we did have the absolutely

valuations on stocks lower so where you can basically say is earnings might not hold up. and therefore the earnings yield on stocks might, in fact, be lower than this. but at least you're starting to rebuild a relative valuation cushion. then you want to look at dividends. it's a kind of a similar story dividend yield on the s&p 500 compared to corporate bond yield. this isn't just treasuries this is kind of investment grade corporate yields what you see is dividend yields give you a higher percentage of the yield of high grade bonds than they have in 25 years so if you think that that's a relevant statistic or a little bit of comfort in terms of deciding to have some equity exposure, that's where we are right now. >> all right, mike thank you. just want to point out some news that we are getting and we are learning here at cnbc. and that is harley-davidson is going to have a leadership change president and ceo matt lebitich is going to step down. the current board member zietz

is going to become chairman of the board. levatich will help assist through the end of march just wanted to share that as soon as we got that. for a stock, mike, that has been hit really hard. not sure the why here. it's getting the announcement of the changes. but clearly this has been a pressured one. it's been a target of president trump. >>ight >> and it's suffered from some secular changes like young people not buying motorcycles. >> certainly strategic and brand issue that's been in the background even before you had the trade related and some cyclical concerns there. all right. it has been a wild week on wall street dow dropping 357 points in today's session. here's a look back at how we got here >> the dow closing lower. >> i don't think this is the time in general based on

fundamentals that one should have more risk than usual. >> it is the fourth day of declines in a row. >> we should try and resist our inclination to buy >> uncertainty is the way the market can function. and that's what will create the opportunities. i'm just saying be parent. >> the dow is attempting to close higher but we did not get there. >> this will take eight to nine months to roll its way through the markets. and for the markets to rerate. >> we've taken some air out of the bubble that's constructive. >> worst points decline for the dow ever >> this is a pretty good time to be investor to think about where can you find opportunity >> reminding investors that panic is not an investing strategy >> that's a wrap on an ugly week and that does make it the worst week for stocks since the financial crisis >> at the very least on sunday night before markets open, have a unified statement from the big central bankers in the world that they are all over this. >> i urge everybody be calm, be cool, be collected but my god, don't give up on

america and the world. >> that was emotional. >> yeah, it was, indeed. it was a crazy week. an emotional week. the dow lost 12.4% for the week as a whole s&p, russell, nasdaq all down more than 10% for the week extraordinary roller coaster ride it was summed up just there. let's bring in jason katz. managing director at ubs jason, good to see you sum up for us now that the week's closed, what you'll be advising clients to do over the weekend. >> it's interesting listening to your recap of the week that seemed like a year ago on monday >> yeah. >> we're counseling clients to take a deep breath reflect on the thoughts they

moved up up until recently and that corrections are par for the course obviously this week didn't feel normal by any means. but on balance, markets correct 10% a year since the early 1900s. so we don't need a rate cut. we need a vaccine. and the only cure we need is time because we need 14, 20 days to see how this plays out so i think the best trade at a minimum is no trade. and if you're fortunate to be liquid or underweight equities, i think you need to consider legging it which we did today >> what would you tell people about switching portfolio moves into more defensive sectors, for instance, versus cyclical sectors? is it a time to do that? is that something you're advising >> that's the antithesis of what we're telling people to do the defensive trades have gotten incredibly crowded up until recently gold had a tremendous run. the 10-year below 1.2% utilities making highs over a longer period of time,

these are assets that are not going to beat inflation and help an individual reach their goals. >> jason, in terms of bond markets, clearly they've been a great hedge. and clearly yields have continued to compress much more so than many people have thought. do you start to get to a point where that no longer looks attractive even if it's worked as a hedge in the past >> we're at that point i think it was leon cooperman on your show that said buying fixed income is stepping in front of a steam roller to pick up a dime now, he said that months ago in the appreciation of those bonds have been arguably better than the stock market that being said, for new fixed income, you need to keep your duration super short here. >> what about gold at the moment but a slip quite significantly in the last couple of sessions >> i think gold is an important component of a portfolio here.

it serves as a hedge in times of adversity. i do think that with the dollar's weakness of late and rates remaining as low as they are, the cost of carrying gold is a good insurance policy i wouldn't go more than 5% in a diversified portfolio, but gold and other hedges like treasury inflation protection securities is what we're counseling clients to do. >> jason, would you make your message different based on the age of your clients? for instance, is there different tactics to do right now if your client is young and has a much longer time horizon versus someone who's on the edge of retiring >> it's a great question up until today there hasn't been an avalanche of emails or calls. today i spoke to people of a variety of different generations. for the younger investors, i'm telling them if you have a market cycle at a minimum as a horizon, you need to remain long

equities and think about being modestly overweight equities certainly not by the value low end. but tiptoeing in right now as a younger investor for sure. obviously if you're a little bit older and don't have that runway, if you haven't derisked you're not thoughtfully diversified. you need to raise a little cash. >> jason katz, thanks for joining us >> my pleasure >> and don't miss tonight, a special cnbc report. markets in turmoil still ahead, find out whether -- plus infection prevention and control tells us how well masks, hand washing, and cleaning products fight coronavirus. >> but first seema mody looks at how 3m is ramping up production of face masks. >> this respirator has quickly

become the symbol of the fight against the coronavirus outbreak coming up, an exclusive behind the scenes look inside 3m's manufacturing facility where they're working around the clock to meet the surge in danfoemd r these face masks when "closing bell" returns. markets. the business of trading goods and services. nasdaq operates among the largest markets in the world. and our technology powers markets from indonesia to chile. great markets are built on a foundation of trust and integrity, forged through leading edge technology and a smart regulatory framework. as technology advances, regulation must keep pace to allow the markets to evolve. today we see an opportunity to modernize regulation, to make markets more accessible to investors and entrepreneurs of all sizes. from the graduate buying her first stock, to an institution investing in thousands. the markets belong to everyone and stand as a symbol

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welcome back quick check on how we finished up the day on wall street. not as bad as we looked this week the dow down lower 357 which was a big come back. the lows of the session was down more than 1,000 points which would have made it the third day down that much still looked at our worst. lost about 0.8% on the s&p 500 the nasdaq finished just positive barely. the russell 2000 down 1.4% it all adds up to losses of 10% to 12% the spread of the coronavirus sparking a global race to fulfill orders for face masks. seema mody joins us with an exclusive look inside 3m's manufacturing plant where they're adding new assembly lines to increase their output can they get it done fast enough, seema?

>> that's the big question, sara 3m is increasing capacity to meet the shortage of the rest praters. behind me is an active assembly line of the m-95 respirator. the most popular face mask on the market it's met with filtered media and right here in my hands is the final product. the m-95 with no vax sooen vaccine on the market, medical professionals are relying on this protective gear to stay safe and reduce the risk of getting infected by the coronavirus. but there is a shortage in the market the hhs says it's already about 60% of large scale pharmacies that have run out of the face masks. that's why their pressure is really on not just 3m but kimberly clark and hon honeywell. yesterday they held a job fair they made offers to a number of individuals. so they can increase the head count and also help more people

work here as they try to increase production, guys. >> seema mody, thank you clorox stock hit an all-time high earlier today although shares did end the day lower there's no vaccine to prevent this outbreak. but how effective are preventive measures like wearing face masks and using hand sanitizers and wipes? joining us now is the medical director for infection control at the university of chicago medical. how do you answer that question? >> well, there are a lot of things we can do to prevent spread of viruses. we use them all the time to keep us from getting regular colds and they may not seem very high-tech, but they can do a lot. they can go a long way toward helping slow the spread of things like this nasty coronavirus. >> face masks specifically i've seen mixed reports that they work initially but as soon as they get any level of moisture from your breath or anything like that, that they cease to work. what's the advice? >> well, first of all, there's

multiple different kinds of face masks. there's the surgical mask that people wear that doesn't seal up well that's super good if you put it on the patient who's sick. because that will contain their secretions and protect everyone around them. however, the -- if you're the one who wants to protect yourself, those m-95 masks you were just showing are much better they have a tight seal around the face but you need to be fit tested in order to know exactly which size you should be wearing and you have to be trained on how to wear it properly and they can get pretty uncomfortable. so they're not a great choice for just sort of going out in the public >> yeah. you also have to shave your beard to have them fit well which the cdc says. >> yeah. >> what about hand washing versus sanitizer which one's more effective and do either of them really prevent this >> yeah. keeping your hands clean so that you don't touch your face no matter what things you're touching with your hands is a really important piece of preventing infection in

hospitals, in schools, and everywhere you go. soap and water works really well it can dry out your hands a little bit more, but when you do it, you want to do it right. that means getting your hands wet with warm water, cleaning them getting all of the surfaces with soap for 20 seconds that's a full time through happy birthday and also rinsing them off afterwards soap and water is your best choice when you have visibly soiled hands or when you haven't washed your hands in a long time in between then, i recommend hand signtizer alcohol-based hand sanitizer that's what we use in the hospital that's what protects our health care providers from patient illnesses and protects each patient from being -- catching what's in the next patient's room so those are available to you and you can keep them with you in these fancy little packets. i carry them with me that's what i use. >> and doctor, what about the other things we would typically do in and around flu season to try and stay healthy like take vitamin c, other supplements like echinacea and make sure we

get plenty of sleep? do those apply or because it's kind of a unique viral infection, is that not really applicable? >> it's not clear whether or not echinacea and vitamin c are going to be super beneficial but if you feel confident and tolerated them in the past, there's no reason not to try them sleep, though, has been shown -- a good night's sleep has been proven to reduce your risk of getting the common cold. and so i think it's probably a good idea. although we don't have clear evidence for this coronavirus, it's not going to hurt >> and just quickly, one more. in terms of the debate around when we get to spring and summer and the weather improving, is that relevant at all or no >> i really, really hope that works out. but i don't know if it's going to i'll remind everyone that 2009 h1n1 came along in april in mexico and then spread through the united states all through the summer and that was an influenza which should be long gone by july. so i don't know that we can

expect with a completely susceptible population it doesn't really make sense to expect that this is just going to fizzle out as soon as we get a little bit more sunshine >> dr. langdon, thank you very joining us let's get over to mike for another look at the dash board and the latest charts. >> in this case sur vafing the damage in the stocks that would have led us into this profound correction what i think is relevant they can't extrapolate this as a firm trend. but every one of them has finished off the thursday lows they made a significant low early thursday keep in mind, this is royal caribbean, noble energy. it's a driller marriott and qualcomm. travel relates or energy related or semiconductor china related what you want to do is see the stocks that basically spilled lower before the rest of the indexes did and get signs of

selling exhaustion i think you can say by the end of the week, perhaps we did. it could just be a pause but it is one of those things to throw onto the pile of indicators that shows that perhaps this wave of selling might have worked its way through for now. >> we are just getting word that we'll hear from the president momentarily. we'll take you to it as soon as we get that. as far as leadership from the white house on the selloff on this coronavirus outbreak, what do you think investors want to hear >> it's been difficult to, you know, kind of feel as if there's been much tangible there obviously larry kudlow speaking this morning didn't really have too much of an obvious response there. but i think the idea is when are we going to get relevant realtime information about how many cases, what are the testing, are we on top of the issue? >> as we await comments on the president, we closed the week down 12.3% let's listen to the president. >> -- thousands of people outside and it's going to be very exciting. we have a big day tomorrow in terms of the democrats watching, see what happens

and then on tuesday we have a big day. so it'll be interesting to see we're at the same number a lot of people are getting better, very much number the 15 number plus we took in as you know from japan, we took in some great american people and citizens and they're getting better very rapidly. they're doing very well. all of them are doing well the 15 people likewise we have them down to a much lower number they're in good shape. most of them are in really good shape. one of the people is -- i wouldn't say not doing well, but she's very sick. but she's hopefully getting better but we're at the same number so essentially we've only had 15 and a lot of that's because i called it early. we made a decision very early to close up our borders to certain areas of the world and we did that and so we are

hopefully get iting to see what happens in the future. some countries are doing well. some countries are not doing well you can see that for yourself. and a lot of things are happening. we're very well organized. we have great talent, great doctors, great everyone. there's tremendous spirit, a lot of spirit. and as you know, with the flu on average we lose from 26,000 to 78,000 people a year, even more than that in some cases, some years. we haven't lost anybody yet and hopefully we can keep that intact there have been no deaths in the united states at all a lot of that's attributable to the fact that we closed the border very early. otherwise it could be a different story. so we'll just keep doing a good job. we're ordering a lot of supplies we're ordering a lot of elements that frankly we wouldn't be ordering unless it was something like this.

but we're ordering a lot of different elements of medical. we are working on cures and we're getting some very good results. as you know, they're working as rapidly as they can on a vaccine for the future and with that i think i can head out. go ahead [ inaudible question ] well, i think it's just people don't know -- it's the unknown you know they look at it and they say, how long will this last? i think they're not very happy with the democrat candidates when they see them i think that has an impact and we think we're going to win. we think we're going to win easily, but you never know it's an election i don't think that's helping basically it's the unknown a little bit but i feel very confident and our people are doing a fantastic

job. and again, we haven't seen an increase and people are getting better. almost everybody that we see is getting better and it could be everybody too. >> -- and how much time are you spending on it >> i'm spending a lot of time. mike pence is doing a great job. dr. fauci is great they're all doing really a fantastic -- alex azar is right on top of it we're all watching it very closely. we don't want any bad surprises. [ inaudible question ] what is it >> should nato be involved >> you're going to have to speak up this thing is -- [ inaudible question ] well, we're looking at that right now. we're looking at a couple of

countries, a few countries that have a little bit disproportionately high number and we're going to make that decision very soon >> you suggested our coverage of this is a hoax do you think this is a hoax? >> that the media -- yes i think that cnn is a very disreputable network i think they are doing everything they can to instill fear in people i think it's ridiculous. i think they are disreputable some of the democrats are doing the way it should be but some are trying to gain political favors but faying untruths the fact is i made one decision that was a very important decision and that was to close our country to a certain area of the world that was relatively heavily infected and because of that we're talking about 15 who seem to be getting better one questionable

and had that decision not been made it could be a much different story. some people are giving us credit quiet. some people are giving us credit for that and some people aren't but the only one that aren't don't mean it. it's political, politics so speaking of politics, i'm going to south carolina i think we're doing fantastically there and it will be interesting to see what happens tomorrow. thank you. >> they're in the happy when they look at what's running on the seer i think we'll do well in the election but it's still an election i don't think people are inspired when they see the people running. we're g win that will solve problem. after we win you'll see a rise in the stock market like you

haven't seen >> not a big fan of the fed. i think they make a lot of mistakes they make a lot of mistakes. but i hope they get involved soon if you look at germany they're putting in a lot of money and lower rates further. look at other countries they're all stuffing the till, going in there putting in a lot of money. and our fed sits there, doesn't do what they're supposed toing doing. but that's up to them. that's up to them. there is a fed but they have done this country a great disservice. >> president trump enroute to south carolina where he holds a rally tonight. the biggest there in terms of coronavirus is he says he is looking at travel restrictions on a few countries that havedy proportionately more people infected like with china he said the u.s. is well organized in good shape haven't

lost anybody yesterday lets get to eamon javers when he talked about the fed i knew that was your question. >> i got a couple questions in hard to hear i asked him which business leaders he talking to about the stock market and what they're telling him. i think four times he said this. he said that really what he sees causing the stock market decline is democrat candidates for president. he says that's a big element he pushes that to the top of his list in terms of what's in his view causing the market selloff. i also asked him if he talked to the fed directly about interveeng here. he did not say he has talked to them or called jay powell. he did say what he said before he is frustrated with the fed. wants them to take action. he compared the u.s. central bank to banks around the world and doesn't like what he sees. but didn't refer peskly to talking to jay powell. >> thank you eamon

lets bring in ian bremmer. author of every nation for itself good time to react to the president. how did did you rate and what did you make of what he said just then. >> well compared to the last week he is obviously more focused on the seriousness we know that trump is laser-like responsive to the market he takes credit for the fact that there have been the record highs. he has now had a brutal week, by far the worst of his administration and the first global crisis he had to deal with as president. and he takes it seriously. even the way he respond pd to the election question, confident but a lot more like we don't know what's going to happen. anyone could win that's not the trump you usually see. i think that's a reaction directly to simply stream of consciousness with what he sees this week. s in a challenging time for a guy like this responding in the

united states. >> clearly it's a hard virus to contain. was he right to focused there, the president on the fact that there have been no deaths in the u.s. ie the quality and capacity of care here is probably a lot better than anywhere else in the world. >> he certainly is right insofar as the mortality in a country like the united states is going to be lower than it is in china, iran there is more ability to get data to the health care infrastructure and people's underlying health and other conditions are greater in the same way with ebola different than the erc pmt but are we likely to see of impact of the virus on the united states the answer is yes. the fact it does the fact that we are a more divided country. the fact that we are in an election season a lot of candidates that would love to be

able to find all sorts of problems with anything -- any missteps trump does or doesn't make plus the fake news issue. we haven't had a crisis that had that constellation of problematic variables acting as the back drop on a and and the context i think that makes it harder in the united states. >> i think there is another problem responding to the crisis which is it's a global crisis. >> right. >> as you said and a lot of people here talked about some sort of need for global coordination from a health care response from authorities around the world. and this is not at president -- and not just president trump really the trend is g zero every nation out for themselves how does that work when it comes to fighting global pandemic. >> interesting point the one guy in the administration that's been saying xi jinping is doing good job lets not beat on him that's president trump. you have peter navarro saying

the chinese are a problem and this is an opportunity for america to bring drugs and supply chain back to the united states but when trump says lets all of this directly through the white house and pence there is no trust for him. as a consequence everyone beats upn him saying you want loyalty that's a authoritarian china type move. you add the fact that there is so little international trust. the ability to coordinate between the americans and the europeans today is dramatically lower than after 2008. the americans and chinese dramatically lower than 2008 iran by far the most problematic breakout so far. literally the parliament is shut down the vice president has coronavirus. two days ago the vice president in a cabinet meeting publicly with the president and therapy not getting help from the americans they can't control their borders. what happens when it hits the refugees presently in northern syria about to be allowed by the

turkish government allowed into europe there are political problems not yet being factored in as part of the coronavirus as it becomes a global pan dem zbliek ian, good to get your thoughts thank you. >> want to check in on the markets remind everyonehow we finished rallying in the final half hour of trade meaning we closed down 1.4% on the dow today. down 12.4% for the week as a whole. key things to watch over the weekend. >> over the weekend are we getting anything in the way of indications of central bank response or posture? you want to see -- there is going to be a response to south carolina, the primaries. i think one way to think about the markets into the week is we had a very, very powerful flush lower. went from complacency to outright fear. and sink we did work to skim away whatever excesses were in the valuations and you reset expectations

lower. that's all a positive. the s&p 500 spent a lot of time today in the mid-28 hundredss why does that mean it's where we vaded in january 2008 and back last summer before we built in the expectation for global recovery in the economy i think you dialled back in time a fair bit and i think that's significant if we look for opportunity to say that maybe the market makes a stand here. >> don't miss the cnbc special report markets in turmoil tonight again 7:00 p.m. eastern time we know "fast money" is about to start brian sullivan is here with us now has been prepping for the show brian we're sort of shell shocked after the week being here for the close. a dramatic final hour of trade every day today was no exception but the exception waps that today the comeback actually stuck. other days other final hours of trade we had not seen that closing at the lows, two more than 1,000-point drops

if nobody coined it. i'm coining to it bungee jump market free fall down snap back what a violent move, guys i don't know what people are saying down there. and i know up is better than down for most viewers. but i wonder if anybody looks and says well we added 615 points in 15 minutes up up or down up or down that's bizarre move. >> high volume, high volatility and brian out of time here on "closing bell. so take it away. >> thank you guys. everybody get adult beverage earned it this we can. sarah and wifl thank you of course coverage continues of the monument alsell off all week long today no exception welcome to traders tonight seem teerm steve grasso dan nathan and guy adami. well tonight on fast, it's one for the history books. wall street wrapping up the single worst week for the market since really the depths of the financial crisis i