>> it does worry me, but i think that the industry has done a good job in reassuring investors that this is long-term money and you shouldn't react emotionally to the swings in the market, that it's for the most part long-term money. you get the better of dollar-cost averaging. >> and we have to leave it there. >> thank you. "closing bell", watch the next hour, we'll be here tomorrow. welcome to "closing bell", everyone i'm sara eisen on the floor of the new york stock exchange, another major sell-off on wall street volatility continue toss shakes this market. i'm here at the post of royal caribbean. stock is down 16%, tracking the worst day since 2009 also you can see can value, norwegian down double digits those three stocks, the crews lines, the worst performers, 59 minutes left of trade. the spread continues to

dominate bonds surging, yields making new record lows today as the ten-year fell below 0.9% opec backed the biggers cut, dependent on russia's approval is that's all to come. joining us for the first full hour, stover any link. interesting to me, though. week to date, only three sectors are in the red >> week to date the s&p is up a couple%.

today was basically just within yesterday's range. it is the market finding out to -- what's notable, though is the cyclical areas of the market getting brutally hit so we're essentially pricing in a steeper slowdown today it's not really just oh, the big tech stocks that were up >> what do you do on a day like today? >> stay calm. >> the day to day action is taggers.

>> what the implication is, earnings to the conomy, we can't model out that none of that so i'm looking at copper, looking at the ten-year. i'm going to feel better i'm kind of quality upping my portfolio. i bought united last week. we talked about 300 to 250, nike 104 down to 85 with a 5.1 dividend yield. and i'm hoping it's going to come down, and i bought some wells farthero so i'm looking at opportunities. these are all going to go down,

but i'm hoping they go down less >> i'm not touchen an airline. not right now. >> full team coverage. bob pisani, biggest moves, on the drop in yields, mike has the market dashboard bob, first to you. >> there's a lot of -- or reduced consumers demand out there. madson square garden has also been down dramatically

comerica is down 7.5%, a four-year low, big regional banks, a four-year low, wells fargo, and i know it's very easy to say, but there's a lot more going on with the banks. they're dooling with the potential for lower loan demand. they're also dealing with the potential for more loan defaults these are very important components so, guys, we have settled on the supply versus demand story.

notice that tuesday's extreme was violated, but here's something interesting. the 150 on tuesday has not been violated, the low has been 153 ever since, something to pay attention to with regard to are we all alone in this dynamic of flight to safety, which might be not be safe no, look at a 20-year chart it's historic, let's look to canada their 10's at 85 basis points. there's a 20-year chart. you'll never find another one. it's not so discriminating telling us about our economy it's telling us about where people are running from and where they're running to sara, back to you. >> a quick question. the plunging bond yield. at what point do you think that can act as still lug mortgage rates are plummeting to record lows. where else should we looking for an impact at all

>> i think everything that's out of the control has a positive side to it when things settle down a bit whether it's lower yields, although unfortunately the big boys of the world gets to take advantage of them. the average person through mortgages, baby, even maybe car loans, but they correlate, but there's a big add, big haircuts to most of that. i think energy is the other extreme, but the average middle-class person will fill up for less maybe if they're not so panicked, they'll drive more and use more energy. >> rick, thanks. let's go back to mike san tolli. what have you got today? >> investors trying to navigate necessary swells and breakers in the market this goes back to june of last year it captures a lot of relevant areas that we have got through right now. this big near-vertical drop, and then very jagged attempt to put

in some kind of a short-term low, it kind of brought us back to these area, right the lows of the summer, when the low 2800s on friday, we hit there. we've been trying to see if this is a cushion for the market. back then it was only like a 6% or 7% pullback, we were in pan pick mode. so we have unwound the entire lift look at this chart, though, calendar year 2000, the day-to-day action is very similar. a lot of the stats that are generated in the trading dynamics are taking you back to this period where we had the potential sovereign debt crisis. vertical move, and then this very jagged attempt, violent rallies, massive selloffs. we eventually did retest and go down through the august lows in october, then finally had a

recovery into 2012 i will say that valuations back then were much friendlier. we cracked below 11 times the earnings, bond yields much higher, so there was a little more play in terms of the you have butcher for valuations, but i think less confidence in the bull market in general >> in terms of that comparison, 2011, we had way bigger questions being asked about the future outlook than now, or so far. >> you would think, yes. is the united states going to default on its debt? >> yeah. >> absolutely. >> in that sense what we have seen over the last couple weeks is aggressively more pronounced relative to what's on the cards? >> maybe the valuations levels explain that, but also the inable to really handicap the range of outcomes i do think is significant. i keep pointing to the

9/11/2001, and obviously we had more existential issues on the table. >> what do you think wall street wants to see the big tests so we get a better feel >> yeah. that feels like a key uncertainty, and if we get it starting next week, is that the peak once we get familiar, comfortable, know it's the peak of bad coronavirus, then we can start to model >> you think other people just don't know i don't know that the health experts have a good answer, which is how will it last? that is another huge uncertai y uncertainty. >> the other thought is the formula for making sure we limit the spread is to curtail lots of economic activity. for everyone to essentially

panic, if that's the way around a wider outbreak, that's your other hit to the economic, you have to factor that in. >> our what would make you star to buy more meaningfully would that be enough to step in? >> misstocks i'm buying are down that much already. if the overall market was down that much, my bet is the cyclical sectors would be cremated, and then if there's strong balance sheets, i'm in there picking because i'm long term, but i have cash, guys, you can't go all in, because you just don't know, the duration will be important. whenever we get comfortable with the peak of the coronavirus, the numbers here in the states, i think that will be the sign. just look at china the chinese market was down 14% january and early february, then it bounced up another 14%.

>> can we trust that >> the fxi is green to me, which is astounding to me. >> i would like to know if people were allowed to sell. i do think you have to look back to yesterday, where there's a scenario under which the impact is relatively brief and modest if you want to bet on that, be brave, but ute have days where the market is up 1,000, because people have decided to look at the market and think maybe we've been overestimating. >> we have that set up we have central banks going all in to try to prop up economies, even in places like italy, china, so the setup for when this has passed would look strong, i would think. >> absolutely. i think that we talked about it last week, lower interest rates benefits housing, lower energy prices benefit the consumer. consumer 75% of the usgdp.

jobs are still plentiful, wages are good so i'm not whistling past the graveyard i still think it will be the engine for the economy. >> also not sure whether we're all in on fiscal policy. yes, china, yes, but italy, 3 billion, great 8 billion here, won't do much. let's get to the numbers as it relates to the virus. meg tirrell has the latest for us, meg. >> hey, wilf, just new numbers from seattle and king county, one of the u.s. hot spots. 20 new cases bringing the total to 51, and one additional dead in new york cases doubling overnight to it 2. new jersey and tennessee reporting first cases, illinois reporting its fifth. some are related to travel, but a growing number have been detected in the community.

total u.s. cases now approaches 200 in the u.s case numbers topping 97,800 with more than 3,300 deaths work continues to move quickly washington announcing it's begun encontrolling patients in the first trial. this is a vaccine developed by moderna with the nih they will enroll healthy adults in seattle between 18 and 55 years old. >> is there anything we can learn from south korea or italy, as it relates to some of these questions we're trying to tackle on the death, where this is going, how long it's going to last and how bad it will be? >> the last few questions are things people are trying to put a handle on. it's something i've been digging into today south korea's death rate is very low. a lot of people say that's because their testing is huge. they're probably picking up more mild cases and people in earlier

stages of the disease. you can't potentially sigh that death rate rise as people progress through it. in italy we're seeing a higher death rate a lot of folks say that speaks to the underlying causes of severe disease this is hitting an aging population in morning italy. >> meg, as always, thank you very much. still to come, retailers facing supply disruption we'll get a read with national retail federation's matt shay. airline stocks remain under selling pressure phil lebeau tells you how it's hitting the industry phil >> sara, when you look at what's happening with the airline stocks, they're all under pressure, mainly because, as stephanie pointed out, she's not touching it as long as people don't have certainty when

bookings start to pick up. today southwest warning they have 200 to 300 million hit. just two weeks ago, they were expecting to have strong growth, including strong revenue growth in the first quarter, and then they saw a big drop-off? bookings here's gary keller >> end of last week, we started seeing sharp declines. of course, you know, the stock market really reacted last week, and we had cases showing up in the united states. so not too shocking that we would see an impact on our bookings >> reporter: if you look at a number of the airlines stocks today, all of them under pressure why? because nobody's quite sure how long this falloff will last. is it going to last through april? will it last into may? i've talked where a number of ceos today here in washington and yesterday when they were at the white house. nobody has any guidance at this point. one other interesting note about the meeting at the white house

yesterday, guys. eamon javers and i have talked with a number of sources who have indicated following the meeting of the ceos with the coronavirus task force, a number of ceos pulled aside or had meetings with leaders of the trump administration and pressed them, the administration, to look for the opportunities where they can reassure the public, especially corporate travelers, that it's okay to get back out on the road. that what we're noticing, a large percentage of business travelers say they're not theis said, no, you're not making this trip that's why you've seen a severe falloff. >> phil, just going to mention we're down at session lows clearly, phil, a falloff in demand as we heard from gary kelly. what about in terms of their supply what sort of percentage total

are in play? i feeling like that's constituent relatively low then we saw some numbers, they seem to stand out, but the european airlines have cut a lot more than the u.s. have, so far. >> because they're farther along than we are here in north america, wilf jeff blue will be what's interesting to know, when you talk with ceos, they do not think we'll ultimately see a fire sale, throwing out $49 to go from chicago to new york, we want to fill the planes. they look at it purely as a demand issue, now the same as you might see during a recession. they look at this in terms of people either being afraid or

being told not to make a trip. >> i think it's interesting there's arch aviation summit when a lot of other events are being canceled i guess they're trying to make a statement, though. >> reporter: they're not too worried. not one i talked to had said i was thinking twice about coming here they're conscientious of what's going on, and they understand why people might be concerned, but they will not be changesing their patterns of travel, at least not the way we have seen with other industries. also slightly dated propellers, as the backdrop behind you there we're on to jets they days. >> there's a few of them there. >> >> reporter: i'll pass it along to the event organizers. coming up, we're going to talk more about this with gordon bethune. he'll join us on how airlines should be responding. we have just over 40

minutes. we are at session lows, just fractionally off of this the heat map for you, all of them negative today, and comfortably so, though we mentioned earlier only four sectors are negative for the week as a whole. the thing to point out really, financials, energy, they're the worst performing sectors since the part of this big development. even on the up days they have bounced the least. financials down 5.7% let's turn to retail evernote saying tjx, that exile is one of the best to weather the storm. the first says the company is an ultra-trifecta that creates significant value for suppliers, consumers and shareholders over

the long term. that stock getting hit with the market mean whites the spdr etf is on -- let's bring in matt shay, president and ceo of the national retail federation you're constantly in touch with retailers across the country what are you hearing from them in terms of level of concern z. >> sara, nice to be with you we've been doing our primary role as the association is to leaders. we've done that regularly over the past few weeks we had about 7,000 visits to our website. we got very robusts information with updates on the coronavirus, and we did a call last week with several hundred retailers on with dr. nancy messioniey and the cdc. i think it's been talked about a

couple times out supply-chain side, a variety of companies we're talking about have given you the indication that in many cases their factories are back online a major supplied in hong kong said 90% are up and runs they may not be at capacity, but they're coming back. so it may be weeks rather than months i think stephanie got it right earlier, thats big unknown is the uncertainty about what the impact would be like, and if we can't inject some certainty, people would be more at ease >> if we put aside the hand sanitizers and clorox wipes, do you get a feeling it just

shifts, or will we see a big, big drop-off across the broader retail sector? >> wilf, that's an interesting question we've had asking -- i've probably talk to two dozen ceos in the past week, and also talking to consumers about that. the ceo perspective first, i talked to one ceo, and they said they're feeling some impact. i talked to another ceo yesterday morning, and he said let me get in the other side of that trade we're doing very very well righr spending shifting among certain categories, certain segment, and maybe even shifting along channels i guess that brings me to what washington mutualers are telling us more than 85% of respondents have told us they have not

changed their shopping at this point in time. that's only a couple days old. more than 80% indicated that even if this gets worse, they won't spend any less i think that suggests sort of what you're inferring that at the moment, even if it gets worse, they won't spend less, they might spend differently. >> that's not what we're getting from the market, matt. if you look at some of these big sharp moves in some of these retailers, they're getting slammed. how about the balance-mayesed or department stores that were suffering before the onset, what do you think companies like that >> i think -- across the industry over the past few years, and that is that, you know, a strong economy is not distributed equally across all companies, and doesn't result in

equal levels of success for everyone when this ends, and this will subside. those companies that are well positioned will be even better positioned that's their competitors. on the supply chain fulfillment, and fulfillment is not about suppliers exclusive. it's about data. that's what drives supply changes and fulfillment. thoth companies will take share away, because we're at a moment we're in an environment where people are taking share from

others thanks so much for joining us, matt. >> thanks, wilf. don't mitt tonight's special report another massive move. 35 minutes left in the session, 30 out of 30 dow stocks lower, the overall average down 1100 points. they talked about all of that yesterday, and here's what they said about the impact. >> we made a decision last week to begin to up production in certain areas where we're using a bit of the analogy of whether or not our natural disasters, where do we see demand at a greater rate we have you said that level of

production to be able to maximize our inventory >> shares of general mills up more than 7% in a week, campbell's up 15%. revenue estimates on alphabet say it will cause less search and spend on travel he also said since they have the highest grorge margin, results will be impacted the stock is down 6% today. deutsche adding ultimata beauty as a short-term catalyst, saying the beauty industry is largely insulated from the coronavirus concerns deutsche sis the only domestic -- the stock is down 5.6% 1/2 these stand out to you, stephanie? >> yes first, mark klaus is a rock

start. he was a captain in the army he's worked in the business for a long time at kraft, and then sold pinnacle. i go with him for sure i know the stock is up a lot, but only 20 times. for a staple in a turnaround mode i like that one a lot. >> this pop they're seeing because people are hoarding canned soup? >> no, i think there's a turnaround happening here. he's trying to make it healthier, not just canned there's a lot they're doing. maybe the pop short term could be the pantry loading, but i think there's a story leer the only other one i would say is ultimata. i'm itching to buy it, but this is 22 times forward, it has no yield and high, high beta. so i believe in the company and the turnaround there, and they're doing a good job in the

skincare we saw it with estee lauder, but at it 2 times, it's going to move much more. >> we just talking to matt shay about the retail hit what about companies that that have more on -- >> i went on amazon to buy clorox wipes today it will take me a week to get them. >> the bullish call on tjx, yeah, sure they have a model that's resistant, but that's back people go and browse. the whole strength of tjx is not exactly strength at this moment. i think it looks really stretched in the short term. >> that's what you want about zoom video still to come, by the way, we will talk about potential

buying the dip opportunities in the tech sector with ledgen dear investor allen patrick if you're just joining us, another massive sell-off on wall street the dow is down 1,000 points it's odd we're getting used to these moves. yesterday the dow closed up 4%, now coronavirus back in the spotlight. in terms of who's getting the harder, utx, boeing, jpmorgan. it's that cyclical things. >> the kpw bank index moments ago was down 7% for a basket of 40 to 50 bank stocks that is extraordinary. the reason i sensationalize that a bit, they haven't enjoyed the bounce, either

banks are down about -- the kpb index is about 23%, 24% from the december high, down more than 20% from the february high these guys haven't enjoyed a boujs. >> that's because people think it's 2008, and these companies are different. that's why i was buying a bit of wells. i don't know the bottom. i don't want to own a ton of bank it is in this environment, but at some point you're going to have a bounce >> i think there's another element, going back to your point earlier, there's a lot of machine-driven selling i'm sure many algos, with the ten-year dipping belined 0.9, let's sell some banks again. overall market down 1,040 points here are things driving the act.

opec with its biggest cut -- business roundtable just announced the formation of a task force to coordinate action between the private sector and the government chaired by marriott ceo arnie sorensen. and will include jamie dimon, ceos of pfizer, nasdaq, j & j, home depot, also the brt announcing it's potts uponing the ceo innovation summit and secretary azar will be attending that meek. so clearly companies trying to get on the same page with the

government, because we've heard so much about companies being more conservative than, say, the government >> they have legal responsibilities, too. >> i am hearing a lot more intra-u.s. bans -- not just international, starting to see don't travel at all. we are down 3.7% let's go back to mike for another installment of the dashboard. >> if we need a bigger boat, looking specifically alternate credit, which has largely been spared, but it's starting to flash some signs that maybe it is weakening here's basically a chart of the prices, etfs of high-yield bonds. it's a proxy for high-yield credit spreads what you are seeing is proust pronounce pronounced now, the prices of

high-yield bonds have softened up, therefore the spread is wider, but it's mostly happening because of the treasury yields going lower and credit yields in and out following, so right now you're basically saying it's something to be concerned about. we don't know if it will morph into greater stress. some stocks of highly leveraged companies are getting wallop ed however, look at the yield it's an 2.3% right now that's very undemanding of investment-grade companies if that's your hurdle rate for investment, buying backs or doing whatever, it's a very low one. at least in theory if things calm down, it could be balance sheets as well as share bryces eventually in the very short term, mike, what's happened to credit? >> it's not necessarily even back to where we were in the fourth quarter of 2018, but it's not far from there i think we're in the zone of

nothing is bad as early 2016, but since then it's getting toward the upper end of the range. >> thanks, mike. stocks have improved, by the way, the dow is down less than a 1,000, it has, of course, been a very volatile week swinging more than 1,000 on monday, yet to the up side down almost 800 on tuesday, and today falling another 1,000, andlows just of of that. our next guest says if you're a long-term investor, you should be buying on the dip the exits in the past have included huffington post and health plus one. good to see you. >> nice to be here with you.

>> i'm excited for the -- success. >> maybe we'll come to that. if you're a long-term investor, you actually think this is something that creates opportunities than fear. >> i learned a long time ago from an astute person in the market he said if you love a stock and really know the fundamentals, not that you said it, but if it goes down 50%, you should love it twice as much that concept has stuck with me for a long time. if you have a company you really like and know, i certainly would not be afraid about dips but at the moment in this volatile market, i would be staying calm and not doing anything, frankly, but i think the opportunities will be here.

we've seen a lot of blips in the last 10, 20 years. >> what's it done to your market private quite, do you get to see lots of opportunities to buy companies? are they strongly correlated or not really. >> we're investing in young companies. it's interesting, the companies you put up there, one is in podcast business, skim and axios, everybody keeps reading every day. companies like that do well. company that is relate to staying at home, not having to go and travel, i think will do fine in spite of this blip, but we shouldn't get overly nervous, though no one likes to see declines like this but when you see volatile markets, the best thing is to keep your hands in your pockets for a while. >> why are you so cold front

this couldn't cause a more prolonged economic downturns. >> i saw the '70s, the '80s blip, the '90s i think we're going through -- this is serious, no question about it, but i think, you know, if you hold on to good fundamental stocks, i certainly haven't owned any stoblg i own in the last several weeks. >> what are you looking for to get more confident what will it take for you to buy? >> i think what's happening in the political season, picture, think will help. once that stabilizes, and we have a more normal environment, which i think we're headed into, i think that's going to be a stabilizing force. i just think that general economics, in terms of what, you know thanks god most major companies are in good financial shape.

that's a very important fundamental did you think that tech stocks had gotten overstretched to the up side. >> i think you would have gotten a modest pullback no matter what i think we're going into an environment of anti-competitiveness i think we'll see the googles and facebooks, there will be a lot of congressional scrutiny. where those companies stand vis-a-vis all the other smaller companies will be seriously considered by congress and the public and probably during this electionl about worsening conditions and having them start to ask questions

about covid-19, head count -- >> i have to mile i remember very clearly sequoia put out the same kind of her. >> make sure your balance sheets are in good shape, keep yurt head count tight, but i think what they're saying, anyone who is a rational business person wants to make sure their house is in order. we're saying that to them every day. we didn't say just the last week, but yes, we would reinforce it, make sure you have it under control everybody is feeling the effect on this. i heard peat nut butter sales are an exception

do you think it will be hard to exit any of your investments for the rest ofthis years? >> i think the near term, i would think ibos depend on market windows you know, people try to catch a window when it opens the window hasn't opened the last couple months we've got to get through a much more subtle period lots of quiet filings, but i think to come out you would have to be pretty gutsy >> do you think m & a will be put off for some time? >> we have half a dozen that are in process i haven't heard anything, certainly in the last week that would indicate they shouldn't continue, and, know, prices that are proposed, and we -- we have every coached they'll be

completed. >> just reading the post, they're calling it the black swan of 2020 do you think they're too worried? >> no. listen, this has been described as a pandemic. i just heard -- it's only a rumor, i'm not saying it's true, but some universities are saying kids don't go home for spring break, stay in place, because people are trying to contain everything where it is i think might get are being canceled, and it will affect the travel companyies 50%, 60%, but as long as on. >> that's not a blip you said it was a blip in the market >> i just don't see it going

straight down. i think we'll go there an adjustment >> i would say we'll see this thing settle down probably in the next two, three, four months and we'll see a recovery, and we'll be sitting here a few months from now watching people getting themselves back in shape. in the meantime it's uncomfortable. it's no fund. we hope you're right it's alleges a pleasure to see you. >> thank you for having me. and don't miss the special report tonight at 7:00. coming up on this show, we're going to talk to a technician, tom mcclellan, and what he's seeing in the charts let's have a quick check on shares of zoom video, that consider add coronavirus beneficiary, video conferencing company, of course it's up 5% it fell last night, but of

course it's up hugely. casino stock performing much worse it's a innocent in his 50s who has a child enrolled in clack county schools el dorado now off more than 15%, red rock off 14.5% boyd, mgm resorts taking it on the chin the worries about how this coronavirus affects consumer behavior and conferences is also driving down which is almost 13%. it gets most of its revenues overseas so it's faring much better today. win is taking it on the chin as well suntruth records that roommates are taking a less done's well.

sources tell me the funding commitments are in place and the credit will not be an issue there. >> contessa, thank you so much for that we have just independence 15 minutes left in the session. the big board, major averages, as you can see are down significantly, but just off the lows we're down 3.6% on the s&p 500 you're looking there at the biggest dow laggards. last-chance trade time >> going for quality

i owned this stock last year i took profits but there's also free cash flow generation that's going to improved this year and the next several years. they're guiding 3 billion appeared i think they're going to they're going to, it's immune to coronavirus. >> i think you should explain what they do >> yeah, defense contracts, and by combining the two companies, they actually are more formidable competitor to the big guys as i say, they have margin up si side. we have 14 minutes left of the trading day. we're now in the market zone,

commercial-free coverage. >> mike san tolli is here to break down the crucial moments and we have stiff any link here as well. >> i think they cut 50 at the next meeting i think jay powell understands that negative rates are fatal to the global financial system. if we go into negative rates, there will be capital destruction en masse >> gundlach calling for a -- >> he's been predicting what the market is saying

>> so that's it's telling you essentially. whether it's true or not, that's what the market is braced for. >> it is signaling at least they're moving at a faster pace and hopefully instills some sort of confidence. clearly the move this week didn't they're moving quickly to do whatever they can do.

>> the market usually gets there first, the fed is following. i don't know if that would be one for one. a couple oceans about today, ten-year note yield made a new low. the s&p 500 did not. it still held above the levels from friday. i'm going to stick with my plan all week, with not extrapolating a single day's move. the lows to the s&p over the last several days, we basically kind of settled back into that same zone, and then refused to go lower i don't know if that's decisive? i doubt that it is, but it's telling you the bond market and stock market have gone a distance into pricing in a dimmer scenario.

>> where do you want to be in a low rate world >> you do want to be in some of the defensives i think of those three, i prefer the staples. at least there's a consumer backdrop they're as expensive, not as expensive, but i have to say, i'm not all in on defensives, guys, i can't by there's too much value being created. i get why you don't want to own them nowe banks because yields have been falling. kpw is now down 23% from the december high, now down over 20% from the february high clearly as we have discussed often, falling yields not good for the bank's earnings, and certainly not good for the share prices because of the very strong correlation we see

between rates hand bank stocks, but just one of the flags on reg valuations that's been done. autonomous research, and therefore what it means for valuations under three different scenarios. currently before the last two days' moves, stocks are on an 8.5 times price-to-earnings ratio. if we see a 100 base points total, they would be on 9.2 times p/e. if we see a full-brown recession, the group would be 15.6 another measure of that are vail is different yields. one big question we hais wih

dividend be cut? the answer is most probably not. clearly the group, though, not trading like some of those safe high-yield sectors that sayera just mentioned, though they share some characteristics actually they're yielding some pretty good dividends themselves >> they have, one of way to look at them is the actual debt of the financials, it's not raising any alarms right now, just because they are so well capitalized. i think it's one of the ways the market is forcing you to say recession or no, right if you think recession it's defensive, and -- if it's no, then all of a sudden banks and

cyclicals are starting to say they're over-discounting something. and that's broadband drawn not from economic data jobless claims were not a problem about, but if it hits cruise lines, airlines, business travel, events, malls, it starts to pile up in terms of the damage. >> that's why i go back to how comfortable are you with the consumer how much do they pare back businesses have already pared back so it's going to be the consumer, and how can they hang in back on the banks for a sect, i'm waiting to see the alternate -- alts come in those are the ones you may want to be picking at. >> just want to quickly end with a five-year chart, which is go back to 2016, when people were

thinking we had a zero rate environment forever before rates started to rise, and we have a long way to go to get back down to that. very simple, very crude, investors are thinking ratings are going to zero. whether it affects the eps or not, that's how people are thinking, but clearly, you know, they are making a lot of money and the dividends are pretty strong. >> but their yield is 2.7% i'm not sure people will gravitate. you know this. they have the most exposed on the yield curve. so i think there's a point where you do want to back up the truck. one setment bucking the trend is kroger. report ago beat on earnings and sales for the quarter. kroger reiterating their guidance, citing kroger's limited supply-chain exposure to china, saying it's too early to measure how it will affect their business overall basically they kept guidance without the big boost.

here's what the cfo said on the conference call -- in the last few days customers are spending more on water and hand sanitizer, soap, paper and boxed dinners. company also has rationed the number of certainly sanitation and flu products from onloon orders, guys, limiting them to five per person. clearly the view here is names like kroger and costco will report after the bell, will get a tick up in business, so they continue to play it down they want to show they're in the middle of a nice turnaround and want to show results, sort what was we heard from campbell >> at least they had better comps, better x-field gross margins, and i do like the turnaround story there my heart is in costco. it's way more expensive and worries me more, but i have to think they're a huge beneficiary as well.

you're not using more paper goods -- >> though costco was up. >> it's just a harbor. >> you could away if you go out to hoard toiletpaper, you're also buying groceries -- >> and not going out to eat as much in the meantime, the n. sector getting hit hard. our own becky quick sat done withicsen's ceo moments ago. they discussed the coronavirus's impact on oil. >> the investment cycles that we make you are fewer than -- our strategy and laying out our plans is to make investments that are robust to the down cycle we have a key competitive advantage. we build these advantage investments that are robust, and

use our balance sheet to ride through the turbulent times. the economy will continue to grow the demand for energy is going to continue to grow. >> mike, to the point about the two worst performing sectors as of late banks aren't anywhere near -- energy very much is. >> very much it'sic the pattern all along it seems as if almost anything that comes look is an increme incremental reason to lighten up it's difficult to see when so much of the world is operating on a slow speed or stall at this point the commodities keep piling up >> oil down again. mike, you've been looking into the market internals here. >> another lopsided negative today. up/down volume, another 90% down day pretty much, give or take.

that's multiple ones we've hadriesly. utilities agains big chunk, showing a wide divergence. the volume activity index has popped back above 40 even though the market's above its lows that's pretty much at the closing highs. that still shows you a bit of hazards market. we are just under two minutes to go up town to bertha coombs. >> we are seeing here in the nasdaq falling back into correction negative for the week, but for the week still up, because a lot of the big caps are holding on to their contains, over at least the two sessions i've been up so farp zoom has seen a big reversal the stock disappointing in terms of the outlook for more business as a result of coronavirus nonetheless they are higher.

take a look, a lot of the video chat companies are moving higher >> i'm here on the floor of the stokes we have one minute left. down 3.3% on the s&p 500, well off the lows, which is down more than 4%. regardless, another massive day of selling here. yields have played a big part. we have 1.4 to below 0.9, but the used itself is off the lows. banks, energy, defensives continuing to suffer bob pisani joins me here >> here's the story. we've a lot of debate. they of the demand, they of restaurants. some toustuff isn't going to co

back we are down 3.5%, 967 points on the dow, a bit off the lows. s. welcome, everyone. you have the real cyclical trades, those tied to the fate of the economy

still, a big sell-off there. also getting swept in with all of the selling, bond yield with new record lows. this is crazy action we'll speak with gordon bethune on the -- chief investment strategist, michelle meyer is here still with us first to you, bike >> the s&p has moved at least 2.8%, alternated up verb down, and as extraordinary as that is, it's not necessarily niche after

the scholls and the fatss faste faster and i just observed that -- the last five days, so in the zone of s&p 3,000 orb a little below that. times in terms of metabolizing in terms of the markets, this is what this is what you get.

what it's going to results, what the containment me going to be. it is a typically pattern, if you are sort of finding a bottom to have some retests, toss relatively weak breath, and ultimately you retest we olympicsly haven't seen that yet. that registered at the highs of janner >> so add it up, what are you telling your clients to do right now? >> we haven't made any recommendation changes

for the last three years, we've been neutral to keats, which just means don't stay above your normal long-term allocations that will vary by investor we have taken a spread that. and on a relative basis, i think that's still the way to go here. the profit fundamentals, the balance sheets, percentage much zombie companies is still biased toward the larger-cap. but since we've been bounding the table since 2018, be more cognizance of diversification, and more systematic and frequent rebalancing in order to take advantage of these swings. kind of basically stay on the right side of the trade, so to speak. trimming on the moves down to the extend it's been significant, or trimming on the way up, adding on the way down

it's a tried-and-true disciplines we always espouse. >> michelle, as a head economist, how do you try to gauge the impact on the u.s. economy. >> so you first think about the direct hit, and you can gauge that you can look at how supply changes are disrupted, you can get a sense of how production may or may not return, and understand the business reaction what i think is further is around the consumer reaction, whether or not behavior is changing that can happen swiftly, and also happen driven by what's happening in the market. consumers are worried about their health and the finances. they start to become more

cautionary they start to get -- between what consumers are doing, what markets are doing. i think we're seeing it a bit, i think it's inevitable, but we don't expect to see a real painful one that brings down the global economy i think at this point there's scenarios we can play with, and we have to think about the linkages and adjust forecasts as we see the data comes in, which will be serving. >> stephanie, where do you stand on whether the market is selling off because of the fears of a recession or wild swings in sent mjts >> i definitely think there are fears of recession, because we can't model anything here's the thing, though, guys, the dow is only down 8% on the year the s&p is down 7.5%, the need dak is down 2.6% it feels so much worse, though, right? because of these major swings.

we talked earlier it's algo more rhythmic, and i do think there are stocks and sectors do you think way more than the averaging, punished beyond belief, that you have to take a stand, and you're getting them on sale. >> just remind us exactly what i've been doing with that advice. >> we talked about some of the names i've been buying so it's still expensive. that's one i want to absolutely buy, the number one animal health company, a phenomenon management team. i'm not aggressive on technology i know you want to own some

growth, but i think you have those companies to come down let's dive into the -- rick santelli has an update >> you know, if you look at charts that start on tuesday, here's what you want to watch for. there's the ten-year we took it down to 89 today. we violate that with the time remaining in the cash markets, that wouldn't be good. 30s have left the 150 spike on tuesday unchallenged, and there's a bit of a cushion at 154. that's a good thing. the curve has flattened a bit today. if we look at the notion i get it, but here's the ten-year spreads by barclays investment grade and he yield.

>> sara, back to you. michelle, you're an economy that words on a trading floor. what's it been like. >> you can imagine the reaction. a bits of how low can we go? obviously the fed cutting in a an emergency fashion, signaling there's more to come, the market requesting that more should come, and the fed not looking to disappoint markets, i think there's a view we could see further capitulation at some point, but people are also trying to think about what comes next is this an l shape or a u shape? there another side if there is, at what point does that become a point of entry

>> so what's your view >> make it's a deep u. it may feel worse before it gets better, but at the end of the day, the fundamentals of the economy were quite sound prior to the buyers hitting in a significant way, so the question is when, and it might take some time >> do you not think the fed cuts again? >> no, i think they cut. >> you think it's already priced in >> i think that's largely priced in i think they cut in 25 basis ponce, followed by another 25. maybe the viewers have done what they need to do to stem panic i think the fed is hoping to stem the tide. >> what would that do to stocks? 100 basis points >> i think what would it would do, it would do before the cut

came i think it's the conditions under which you're getting that cut. who knows, maybe 25 is a disappointment if that's all we get in a couple weeks. i think you have this profound situation where the federal funds rate is above 1%, and -- so that's part of what i think the market is trying to assimilate >> do we get to 39 on a pmi like china? >> i don't think we do for china it was so dramatic the economy shut down, the factories shut down. it was an extreme set of quarantines. i don't think we get that here in the u.s the big concern in the u.s. is we are a function somewhat of what's happening in china, and -- factories are moving again, product could slowly filter to the u.s. i don't think the shock is as huge to the manufacturing industry here in the u.s. as it was in china, butsh imagine and

we are forecasting -- we talked the last couple days how energy and banks have suffered the most. have they gotten cheap enough to buy those sectors? >> we're making some adjustment toss our sect are sector recommendation right now, for lack of a better word. that means i'm quarantined from talking about sectors. you know, i think that's clearly one of the reasons why small caps continue to underperform. this is a much heavier bias within small caps to sectors like that. i think that ties into some of the factor-based performance that you're seeing all right, liz ann, thank you. another massive sell-off, dow closing down 969 points. back to bob pisani on the floor of the nyse. >> we are grappling with the demand destruction look at carnival cruise lines,

11-year low here some of these cruises will not be rebooked. livenation, people will not go to some of these concerts. just because they're canceled doesn't mean they'll be rebooked darden owns capital grill steakhouse, some people will not go back for three months there you see them in the big decline there. banks the same situation, new lows on comerica we see lower loan growth as well, and possibly higher defaults so multiple things going on. that's why we're getting this chaos. is it a v-shaped or u-shaped it's good deal to be to be v-shaped u-shaped is the best we can hope for. and the hit is on the supply and demand sides it is both of those. back to you. >> bob, thank you. or a slow u? michelle, one question i do

have -- if we see much worse expected in china, but not a domestic shock here, will that drag down the gdp? >> we learned from the trade war, the european debt crisis, we have learned we are a global economy so even if it doesn't turn out to be a domestic shock, we will see loans. we're already seeing the hit to production here in the u.s., but it becoming more problematic if it does change behavior here on the ground, and if businesses change how, or consumers start to hunker down, save more, buy necessary items, you do see a hit to the economy certainly. >> i feel like we're talking about the worst-case scenario, the gloomier outlook on what could happen on the plus side, rick showed us a credit chart

we're not seeing liquidity problem. talk about the things that people are watching as we have this recession debate or how sharp this is going to be. >> it's not real-time stress, it's anticipatory of what might pop up in terms of cash flows being pinked, things like that so that's why the market is trying to admarch the punishment in the appropriate areas i also think, you know, we mentioned, we're talking about the down side, what kind of recoveries, we don't really know the slope of the down, or whether it will be a pause i do think there's a scenario, you will hear people say it, that this perhaps is a fairly contained stretch of modified corporate and consumer behavr,iy last very long, and we find ourselves on t knows, a full percentage point of fed rate cuts and then what happens from there?

you have a pretty dramatic snap-back presumably. >> do you read anything into the fact we don't close at the lows? clouding d closing down is a bit painful, but not past 1,000. >> this one little level of the s&p around 3,000, folks came in, didn't let the index go down too long on any of the recent down days, is that significant? it could be. again, i don't want to scrutinize every twist and turn. >> i thought that's why we had you. >> but when the market is moving 3% a day, it doesn't stand up too that line by line reading. thank you for joining us jeffrey dunlap was on cnbc earlier today. >> obviously the airlines are in free fall, and small business

activity will contract i think it's toolhardy to think anything other than this is going to take a major hit to short-term growth. maybe grocery sales will go up, but all other kind of social activities grinding to a standstill >> jeffrey is best known for some of his calls on bonds clearly he hayes seeing the action in the bond market and bond experts tend to be often gloomy, but i think what he's saying is what's being factored into the market right now. sharp selling, trims, and bank stocks. >> and his point about the airlines goes to what bob was saying, that's not coming back at any time. though, what we were just discussing with mike, that balance sheets, sure maybe american got more leverage that delta orwhatever it might be, but we're not talking about companies that are about to go

bust, yesterday they have fallen agrisively the cruise ships have fallen 50%. >> i do think there's a question how long the resistant to cruising last. it's the quite thatequity that'g the hit right now. >> while the virus has been the top and center, to be mclaren thinking the sell-off could in part by attributed to politics he excite it to key events in that year, to today's market he sees similar price patterns however he's finding in addition to coronavirus, senator sanders ease successes also pushed the

market lower he us now. tom, thanks for joining us we put up a complicated graph, and a brief summary. before getting to that, the other point that stood out for me is just how stretched you felt we've gotten before the pullback, regardless of what the spark ended up being being for the pullback >> and there were several catalysts to give us a market sell-off, any one of which the market could have handled on its own. and then people facing the prospect of a socialistic democrat and the market bottomed on the 25th of february, the day before sanders won the south carolina primary, and then another boost after -- excuse me, after biden. and then another boost after

biden won on tuesday today's pullback doesn't quite fit with that model, but the market seems to be happier facing a biden prospect than a sanders prospect, but we still have the problem of the virus, and the fed being too tight. they need to do another half a point rate cut now is a good time why wait for the meeting you can do the right thing anytime. >> they've done 50 basis points before a meeting i guess to push back on which of those factors, you could say politics has improved a lot, and the fed has certainly improved, albeit, you want it to prove further. the one outstanding issue is the coronavirus. do you not think corona is having a big weight on the market at the moment >> it certainly is probably a heavier weight on everyone's emotions and psyche than the actual effect, which is not unusual.

we saw that with the ebola panic in 2014. everybody was fearful we would all die from hemorrhagic fever when it finally seemed like things -- the authorities were getting a handle on it, the market rebounded and made it back and more. and that's the nature of reactions. we are humans. we still have the caveman brains that caught tows react with fear to anything like that, and not to act rationally. i'm not saying there's no reason for worry about the economy, but i'm saying that investors have a proven b89 to overreact, and think seem to have done so you don't get a chance to buy a 40 vix, or oscillator reading those usually end up being opportunities if you can take the dead cat bouncing and flopping that goes on for a few days afterwards. >> what are you saying we've seen the bottom for now? >> we have seen the bottom for

now, another two weeks to go into the fomc meeting, but then we'll have more weakness into the summer, probably around june for right now, there's a chance we can get a face-off just because of stretched the rubber band so far and up one day, down the next with huge numbs it doesn't have to mean a bottom you go up for years from, but we do have to have a bigger recovery as people get over their fears. then we can worry about how the fed didn't do the right thing at the next meeting that will be what gives us the next down leg into june. >> tom, great stuff. thanks for joining us. >> thank you. tonight don't miss the cnbc special report at 7:00 p.m. eastern time costco earnings came out moments ago. courtney reagan has a breakdown.

>> this is a beat for the costco quarter. i think it's important for us to talk about this quarter ending february 16th. so for costco's quarter, earnings per share of 2.10, beat estimates of 2.06. revenue is 30.907 billion, stronger than the estimates. comp sales again for the quarter up 8.9%, including gas, stronger than the street's consensus at an increase of 6.6%. separately costco reported comps for the entire month of february by that, they were higher by 12%, and specifically calls out an up tick in the fourth week of february, citing the increased demand related to the coronavirus saying they believe it added about three percentages points to the 12% comp two different comp numbers, one for the full quarter ending february 16th, one for the

entire month of february we've been all over the map as we have this name, and separately, if i could pivot quickly to gap, we have news, the company nowofficially naming a new kreismt off songia syngal has been with the company since 2004 she was slated to run old navy in the previously planned spin-off that is no longer happening. however, gap has said they will become the ceo of the entire company. in addition they have named two new board members, elizabeth smith and amy miles. shares of the gap are also slightly higher. >> quick question. does costco always break it out like that? or we they specifically trying to highlight the impact of the virus? >> they still gives us they monthly comps. sometimes the calendar doesn't

end clearly with the end of the month and the end of the quarter, so there are instances where they have to give us two numbers in the same release of course, the end of february ended up to be a pretty important period of time >> thank you costco and gap trading up. take your pick, mike. >> costco very rare, obviously a 9% comp for the quarter. whatever the effect was as a company this size is still pretty impressive. gap, the market's valuing companies like gap as if they're not really fixable a new ceo seems like from the better part of the business. >> there was talk of splitting this company up. >> there was it's constituent pretty debt cash flow.

the market doesn't want anything that has more than 1,000 stores, basically. >> and everything is on sale at all times, gap and old navy. let's look at how we finished up the date dow lower by 969 points. that was a lot of 3.5% s&p 500 down by 3.3% every group in the s&p was lower, led by financials nasdaq down 3.1% in the russell 2000 index of small caps down 3.4%, as we saw another rush into the safety of government debt let's go to meg tirr for the latest details on the virus. >> cases worldwide are inches closer to 100,000 as china's new daily case count decline, but numbers across europe and increasingly in the europe schools choicing in at least 22

countries affecting millions of children, according to the united nations johns hopkins data shows about 54% have recovered, and more than 3300 have died. in the u.s. case counts jumping today, led by new york and washington state new york cases doubled to 22, while washington, seattle and king county reported an additional 20 is cases and one death. this is testing capacity has expanded here and will continue as commercialcompanies make their tests available. labcor saying tests will be available by 6:00 p.m. tooj. finally the senate overwhelmingly passing a spending bill for the response to the virus today, the package has been sent to the president's desk why is the u.s. having so much trouble getting testing when south korea has tests, china has had tests?

why is it so difficult for us? >> it was a delay in the roll-out of cdc tests, so the cdc has had to replace some that didn't work. they've to figure out work-arounds, and now they're changing regulations, so commercial companies can work faster to ramp up their testing, this has been delayed by the initial roll-out at cdc. >> meg, thank you. tomorrow mike pompeo will discussion the coronavirus and much more at 8:00 a.m. eastern time at "squawk box." >> mike has the third installment of the dash did not board. >> professional investors starting to trim their sails this is a weekly survey of the national association of active investment managers, very tactical investment advisers, and this shows you the extents

of equity exposure we had that 20% decline in the market over the course of three months this should be taken as a net positive it doesn't necessarily like up with every other bit of positions and sentiment, but it's starting to get in that direction of people are scared and they're playing very small in the markets that speaks to this volatility environment. maybe it will find its footing. >> just to make sure the market moves and actively withdrawing cash >> exactly it's both. it's mostly discretionary moves. >> mike, thanks so much for that. a check in on the "closing bell" big board. as you can see we've traded down sharply the major averages

we're down about 3.4%. meantime, southwest could see up to a 300 million decrease, and greatery kelly says they're seeing a noticeable drop in booking. hopefully this won't last very long joining us is gordon bethune, chairman and ceo.

what sort of financial pains are these airlines in for. >> i think in the short term they're in for pain. there's a lot of up side i do understand in the short term, because it's a cash issue. and all of them are doing that this is an evolving story. but the gut reaction appears tore sell the airlines on the fact that more companies will cancel travel. >> i think that's true, except for the fact that there are antidotes of this being developed. to the panic that per raid our country now.

it's not a big number, but the fear factor, subjective as it is, is pretty widespread so that's not something a rational person can project. it's an irrational fear. it's going to get worse, and i think we all know that gordon, how do you think about the stocks with the e-part likely to fall are in the low single digits is that a possibility? , will i think the fundamentals are good i really believe the fundamentals are good.

it's going to recover like was mentioned earlier. we just don't know how far down it will go >> you were in charge of continent, and that's another person when airline travel just stopped. >> absolutely. do you see any parallels, and how the airlines might prepare or respond >> sara, at the time, it wasn't the end of the world, but you could see the end of the world, and it felt like that for eight months a long pull through that reallyi i think it's going to be faster moving hopefully ostensibly, these times of viruses abate there are antidotes, and better testing. so there are a lot of good things that will mitigate the

problems we're having today, and i think that will be reflected in long-term or this year's earningsio what should americans be doing >> it depends on what overseas we're talking. there's some countries that are zero and not likely to be affected. >> what about europe >> well, in different parts of europe, there's very different outcomes there's no cases in denmark. i would be select iive when your talking about your children, are probably a little more conservative than you are yourself don't miss the special report tonight at 7:00.

paul, break it down for us in terms of that leism of volume tilts and the huge moves weave seeing >> i think, wilf in the short term, we don't know what's going to transpire over this whole thing, but during these types of shocks, what we saw in 2015, 2011 deal speed all the volatility, you -- sprited to hear this is the as long as we

continue to see that type of pattern, you know, it's -- that's encouraging the big test obviously will be tomorrow we all know the headlines are going to get much worse before they get any better. we're testing more people, so the number of cases will go up we haven't had a friday that's been positive this years since the outbreak came out. and so if we can see any extort of stability tomorrow, i think that would be a positive signal. you know, again, in the short term you tent to see the volt tilt, but in the long term, there's a number of studies, as mike san tolli was talking about, you tend to see this flopping around like a fish in the short run, but eventually the market rights it own >> what do you think of the

scale of movement in the bond markets, and people are saying are they moving ahead of stocks? >> you know, i think right now, if you're buys bonds, you're definitely not buying them as an investment at this point i think you're pretty much buying them on the hopes someone will buy them from you at a higher price the long-term u.s. treasuries are in the miss iing where the year over year return was greater. when you've seen long-term treasuries rally by 25% or more in a given year, you have seen them over the next year, just about every time by an average of 14 percentage points. so i mean, the bonds are reflecting the uncertainty out there. i'm not going to sugar coat it there's a lot of uncertainly out

there. investors are right to be uncertain, but treasuries have rallied on that. the question is, can equities look through the coming back headlines we'll see as the number of cases goes up. number of school closures increase, and travel disruptions rise we don't know when that's going to end, but starbucks is just announcing right now they have seen the worst in china. they haven't seen any impact yet on the u.s. operations, so i think that's something -- it's a wait-and-see game. the market hates uncertainty unfortunately we have a lot of that right now eventually we'll look through this and get past it. >> we're not in a place where the market is looking through headlines, as paul was saying.

>> no. >> what would it take to get there? >> i think it will take time and just continuing to whip around these levels and see if the market can withstand it. we're still talking about headlines that say six new cases here, four cases there it's not like we have a handle on the aggregate trend in all of this i do think that, you notice i go impact to the example of the post-9/11, you had a time with a bomb scare here, and travel restrictions, and for a while the market jauss jerky and jumpy about it i don't know if we've had enough times to be saturated for long enough to say, okay, we've got this, we kind of know where it's headed. as paul was saying, it's kind of textbook, one big reversal off the low, and then maybe we have to hash around there.

>> paul, thank you for jumping on the phone. >> okay. sure, thanks still ahead, investors may prefer joe biden to boyce boyce, but a closer look at the former vice president's tax plan, there's a big hike could be on the horizon for wealthy americans and businesses. >> it's get so bad that one financial firm says they're giving up on the sector. as we head to break, the biggest loser in the dow today we're back in a couple minutes

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a quick check on how we finished out the day, down sharply but off the lows, which was more than 4% 3.4% on the s&p 500, and of course the perspective that we are up week to date 2.4% on the s&p 500. it's been lots of up-and-downs alternating so far this week new details on the costs of joe biden's tax plan

ylan mui is here with more. >> hi, wilfred let me break it down $4 trillion. that's the total size of the tax increases in biden's plan according to a new analysis from the tax policy center. 1.3 trillion comes from raising the corporate tax rate on the individual side, the tax hikes would mainly hilt the wealthy. capital gains would be taxed as ordinary income. the payroll, to the top 1%, it relates to an increase the $300,000 guys >> i'm not sure that's going to prevent him from getting wealthy donors, ylan. >> thanks. if the alternative they're looking at is boyce boss, i think joe biden is still preferable, but it's important to remember he still wants to raise taxes on the wealthy it doesn't mean the wealthy

would get a free pass. it just means some of the more aggressive proposals from boyce boyce wouldn't see the light of day. >> traditionally there's always a bit of tacking to the center are tax plans when you've been so specific and given such clear numbers are them, are they usually included as well in terms of things that get warted down or not >> i think biden has left himself some room to do even more perhaps for example, the tax policy center's analysis does not include something like a financial transaction tax, so we could see more details flushed out around that. that's something i think would be considered more left of center and continue to be more aggressive if he sees that boyce boyce is playing better than him in the polls. >> ylan mui, thank you thank you. energy getting slammed again today, the etf falling nearsly

5% brian sullivan is leer with more on a day when opec actually took some action. >> it's a 1.5 million barrel per day proposal russia will join opec plus we'll see if they can good et that done. there's a big school of thought that opep has been tied at the help, may do what they need to do it anyway we'll see. the real yesterday is we fell get in oil today despite that, because the market wax something concrete out of opec tonal it might stabilize if we get out with no deal out of vienna and everybody goes home, everybody i'm talking to says oil could and will likely plunge tomorrow. we could see stocks and oil fall even more tomorrow what's interesting, guys, about

the stocks, they've got crushed. here you go. the average return of one of the six companies operating in the balkan is 57% loss this year it's march 5th, and these stocks have lost more than half their value on average i could look at my screen and finds stocks down 75%, 80% the market is say unless oil recovers or moves higher, some of these companies' equity will likely go away pretty much everything is red on the screen as well and oil as a group are trading below where they were when the price of oil was at $25 a barrel so something is off, but everyone hates it, esg, high debt, you name it, no one likes it i'm starting to feel bad about myself every time i do an oil hit.

>> well, my sector is suffering, too. not quite as badly as yours. brother, mine is attached to yours, see you hold all the debt. when these companies can't pay the debt, your sector -- you're next >> we're already on that path, that direction thank you, brian mike, just one follow-up question on this, clearly with the dollar coming down, with stimulus being announced china in particular, you would have expected oil to rebound a bit better. >> how about the fact there's an agreement from opec to cut 1.5 billion barrels per day. >> industrial metals have rebounded quite significantly, but oil just can't catch a break. >> the price and the consumption have gone down so much look at our travel stocks, what is that implies about demand even in this country china perhaps as bottomed in terms of activity, but the metals demand, things like that,

it doesn't seem as if the supply cut is necessarily getting ahead of this issue. >> even if opec convinces russia to go along with this graeme >> i think we're getting into trading scold. crude oil is still in the mid 40s. still to come, we're sees red across theaj mor indices we'll look at the keep economy indicators to follow, coming up. that will shape tomorrow and building workforce development and tuition-free college programs to generate the talent companies need. with a $150 billion investment in state of the art, modern infrastructure, and a nation-leading commitment to low-cost clean energy, new york is doing more than any other state to build for the future of your business. new york state, the state of the future. learn more at esd.ny.gov.

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- ( phone ringing ) - get details on this state program call or visit another day of selling on wall street, dow closing lower, 969 points let's go back to mike sanlt y for the last nautical theme dashboard of the day. >> asking if the fied is set to turn we haven't spent time talking about the macroeconomic numberings we are getting the jbs report tomorrow. but the labor market has been strong but the dynamics come in on forward looking trend. in orange here is continuing unemployment claims, not new claims so continuing basically, the number of people collecting uninsurance, it's very low, just like unemployment in general so bumping along historically low levels the top chart here, the jolts, this is the number of job openings reported by businesses.

and this obviously is rolled over dramatically. looking at past cycles when it rolls over, the orange line comes up, right? that's your pre-recession indicator. the big question is what effect a lot of the measures related to coronvirus have, either temporarily or lastingly on the jobs market. i do think it's something to watch, because it doesn't take much to get the wall street conversation back to how much is left in the tank for in expansion? and i do think this is the kind of thing we'll be watching, even though the labor market remains in a strong position. >> would you have expected to see this show up in the job -- the weekly jobless claims number yet, the fact that companies are cancelling business travel and conferences. >> not quite yet i almost wonder if next week would be the one where you saw it you're going to kind of cancel things before you lay people off. today's numbers, you mentioned, the new claims was actually better than expected by a little bit. >> mike, thanks for that still to come, the countdown is

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39.6%. off the lows of the session which was down over 1,100. down over 4% on the dow on s&p at the lows of the session the last 30, 40 minutes or so took us down to 3.6%. >> still remarkably higher for the week. >> yeah, 2% plus higher. >> just want to check on shares of costco reporting after hours. the stock a bit heiter where it's been the whole time, interestingly breaking out the four week of february, showing the tick up in business on last week of february as people rush to costco and stock up on toil paper and bottled water and whatever else they're getting in bulk. >> obviously there almost was the perfect chain to actually catch most of the business not a surprise, tremendous double-digit gain in comps for february but i think it's always been a well managed company that could continue to show good growth in normal times so almost just an accelerant there. >> looking to tomorrow, question

get the february jobs report projected to show payroll increase 175,000 last month compared to january 225 report due out tomorrow morning hat 8:30. >> we haven't talked about the jobs day tomorrow. crazy. >> but, mike, could it be -- it was 3 million would it be possible we wouldn't see the rate cut in two weeks? >> i don't know that we have 3 million people to find work. >> i'm just saying to sara's point is it irrelevant. >> it's really not relevant when you consider the survey week from which the report was drawn was in february. it's not a window on any of the impact we have had of in sort of slowdown in business restrictions and things like that so -- but, does give you -- help give you a snap shot where the economy was before we got into all this it was relatively sturdy. >> i was just going to say, on the data points coming in, ignored by wall street, but had been mostly pretty strong. >> the ism, non-manufacturing.

>> what kind of footing we are coming from, the because the downside could be so bad. >> i think it matters. it shows you maybe we are in a somewhat less fragile position than than we might otherwise have been. therefore you can withstand a little more. but ultimately it's not going to determine exactly how the economy bumps along from. >> seems like the investors and the fed are watching the virus numbers. >> exactly. >> and not so much the jobs numbers. >> watching virus numbers and not financial stress the stock market down a lot is one thing. credit markets squirrely. >> mike remind us ever the key level to watch tomorrow and the fact it's a friday not to break below. >> in general last friday's low was 285 a on the s&p it's about what 5% down from here i think you could go on the premise that that might be the low for the short-term but it has to prove its the case. >> and fridays are not great. >> they substitute haven't been good all year. >> we are out of time. don't forget to watch the

special tonight 7:00 p.m thanks for watching "closing bell." >> "fast money" starts right now. the clocks don't agree another big selloff rocking wall street, fierce of economic slowdown sending stocks spiraling, the dow dropping 970 point for a loss of 3.6% every s&p 500 sector finished deep in the red. and more incredibly the move in bonds. the 10-year yield at one point hitting 0.899% remember, it was 3% two years ago. the drop leaving many investors on edged edge that the bond market may be predicting