up 25% year to date and buying ihf the health care provider etf. >> abc always be cool. >> housing. >> municipal bonds. >> good stuff. everybody, have a good weekend we'll see you on the other side whatever that brings "the exchange" starts now. thank you, scott welcome to "the exchange," everybody. i'm kelly evans. it is another wild day here on wall street. inve investors spread the case of coronavirus. the dow sinking nearly 900 points and unable to hold it at 330. today's roller coaster is just a glimpse of what we've seen over the past four sessions already this week. >> five full percentage points higher every sector on the s&p meaningfully higher. >> federal reserve cuts rates

making a surprise announcement of a 50-basis point rate cut. >> i was ready to take a picture because i see 9999 there we go! snap the picture for history. >> .989% and the speed of the move today an all happening after the fed's rate cut. >> the low for the dow which came a couple of hours ago down 996. we have been incredibly volatile for the final two hours of trade and ending down about 3%, just shy of 800 points. >> the dow this time higher. up 1171 points 4.5%. >> another massive move lower. for the dow down 972 points. 3.6% for the s&p 500, 3.4%. it was broad every single sector finished in the red. >> and now we have a new milestone, the 10-year yield

continuing its slide below 1 today about .66 the low i saw. crude sinking more than 8% and the white house looking to do its part to try to stem all of this pain. new reports say it's considering tax relief for the airline, travel and cruise industries the headlines leading to a tug of war in industries let's get to it all with bob pisani at the nyse today bob? >> another weekday and attempts to buy today in the beaten up sectors. s&p 500, a rally about 40 moneys ago. st. louis fed chief bullard saying markets seem to be pricing in the worst outcome i'm not sure that's wanted that's him speaking there. came off the lows there and still down 500 points. that comment about tax relief for the travel industry, tar getted fiscal stimulus what a lot of people talk about down here you see attempts today to buy the airlines, to buy some of the travel and leisure stocks like vail resorts, hyatt hotels

that happened before the comments that kelly was making look at the heaviest volume etfs today related to travel. the airline etf, that went positive a little while ago. travel and leisure etfs there had been positive. slightly down today. that's not only airlines but that's hotels, as well, in the whole business so some selective attempts here to buy at the bottom. >> we are all watching to see if the sectors hold the gains we appreciate it thank you. let's dive deeper into selloff today and we're seeing some parts of a rebound, different story in the plunging bond yields. join mega is jim carol and andreas garcia jim, let's start with you. what are the implications of this move today? >> i think in many ways this is a hedge. people are looking at u.s. treasuries as an asset class with scope to go up in value

one in the world with a positive yield and very, very liquid. i don't think that it's just about interest rates i also think that we have to think about the credit conditions in the market and the liquidity conditions in the market because effectively what we need to see to stem this before this becomes a systemic event, impacting the credit market, infects it in any way such that there's an increase of risk of default but not the large caps but small and mid size businesses because they can't necessarily go to the capital markets to issue bonds -- >> it would happen because people worried about the economy? there's a couple -- we'll talk about this in a few minutes but a couple of places in particular you say if you're a travel stock in particular, an oil and gas company, you might have a cash flow issue but you say wesh should broaden out who we look at >> yes certainly having access to the market is going to matter but also many of the smaller sized

businesses, they don't necessarily function with like a large balance sheet. you know a lot of times they go one month to the next month to the next month and if they falter they have a harder time coming back but when the market is ready far rebound they may not be able to come back and that's what we need to avoid. >> it was encouraging to see the headlines of the white house trying to say, look, we can tactically try to help the hardest hit parts by considering deferring taxes, for example, for the industries like the airlines the airline stocks are positive before that announcement didn't react, maybe weakened a bit. would those measures do more to help the market than the, like, 75-basis point cut priced in for the fed meeting in two weeks >> this is a scenario where you can't model and why the market is doing what it is doing. once the market doesn't know how to model it, this is what happens. right? this is a perfect example of why

asset allocation is important. to your point of bonds, if you own a 60/40 portfolio and the 40% has gone up this year, it helps you take a deep breath to say, you know what i'm still okay. >> i'm worried about people and you mentioned this, jim, i have seen stories that hedge funds piling in to treasuries, now you better be careful chasing this one we're at 66 basis points an only so much further down to go. >> i would say that if i were to draw a temporary line on the 10-year it is 50 basis points. >> willing to even go there at this point thrown every other line out the window in the last week. >> i don't think the fund feds rate is below 50 materially. i don't think negative rates in the u.s. is a healthy thing and need to see macro prudential policies fiscal measures that can help and directly help small and mid sized entities in europe they have the trtlos. >> here it comes. >> extends credit to the real

economy and we need it today or at least the talk of it so that we can maybe fall back on it as opposed to just lower interest rates. >> looking the way of europe and japan is -- it is somewhat upsetting in light of this there's another importants a suspect of the market today. i want to bring brian sullivan over for that because it is price action in the oil. welcome. >> hi. >> you have been reporting all day on what has or not happened with opec today. what's going on? they couldn't come to an agreement? now you have oil plunging 8%. >> total disaster of a meeting i have been in touch with people all day long have a little bit of breaking news for you right now. >> great. >> they're trying to hold an informal meeting tonight in a hotel. they're trying to hold i'm not saying they will and even if they do, i'm not saying that something will occur. the formal meeting ended with no

deal. >> take a seat. >> no one's ever done that for me i get to sit. >> all coming down to an ace greemt of saudi and russia you have the statements on the wires where iran says this is one of the worst meetings i have seen in the history of opec. >> and he's the longest serving opec minister. been there longer than anybody an seen more meetings than anybody around that table. the fight between the saudis and the russians as far as getting a deal done, they couldn't come to a deal saudis, according to people inside and outside the saudi delegation, because there's a lot of people in these delegations, that are in the negotiations are the ones i'm speaking with and the saudis said you need to do this the russians said, no, we don't. effectively the saudis took a very hard line they're not gong to bend to the will of the russians so no deal no official deal but as i just said there's talk, trying to gather some or most of the delegates, the russians from my

sources have literally left the building and maybe the country already. but if you can get the rest of opec together tonight in an informal setting at a hotel they might be able to come to something unilaterally not saying it will happen but there are attempts right now for that to occur. >> i'm curious how you place this in the context of the market today with a bet proer file for the hardest hit coronavirus sectors and now opec blow, especially to energy an one of the more fragile areas of credit. >> look at the demand and the supply side. are the guys gong to get the act together there's a demand side. we were hoping there's a v-shaped recovery this year and got the black swan scenario that tells us it's unlikely to occur. so from the demand side, in essence, even solving the supply side, the demand side uncertain. that's something to keep in mind and might have a positive headline here but as long as we get more clarity on the demand side it is hard to really make a case the last thing to say, though,

is important to take a step back because everyone thinks '08, '09. >> like people that living through the great depression. >> exactly the imbalances of the economy back then are not the same ones that we have. >> i'm worried to repeat them. who says we won't get a housing bubble out theis >> we were on the second floor not the tenth floor and about to come down and that matters it is hard to -- important to tell people that because right off the bat they think of the scenarios and the first thing that comes to mind is '08, '09. >> jim >> this is not 2008. the banks have good balance sheets cash and liquidity out there relief for the banks from the fed, and you can start to lend money, start to create liquidity into the marketplace, the difference was in 2008 the banks had a big problem. there was nowhere to go. today there's somewhere to go for the assets and i think the

banks can do it and need regulatory relief. >> one quick point oil stocks, look at occidental up 12.5% today. >> today >> today the market cap is $24 billion. they paid 57 billion for anadarko with debt less than a year ago oil stocks trading as if oil is at $25 a barrel. it is $43 to $45 a barrel. >> for now >> correct if we don't get a deal, if demand doesn't pick back up, oil could see a two handle on the oil. >> that's what they're saying. >> not my own opinion. >> we appreciate it, brian maybe this informal meeting. see you next hour. maybe an update then thank you, as well, on this crazy market day we appreciate it. don't go anywhere. coming up here on "the exchange," it is not just stock prices to worry about. as the marks continue to fall, will corporate debt be the next shoe to drop plus, it's been a wild ride for the cruise ship stocks today

as some of the names from 4% losses to 5% gains back to flat. we'll look at the headlines driving the moves and the ceo of a company saying he's selling six months of supply in a week because of coronavirus stay with us

welcome back to "the exchange" a. mixed bag in the retail space today with some losers there are a few bright spots >> what a week it's been etf mirroring the broader market and costco had a big week. strong earnings last night shoppers stockpiling but shares are lower today by about 2.5%. wholesale club bj's, a competitor, meantime, the shares up more than 4%. nike, under armour, under pressure and the retailers that sell those brands, those names are higher by 1% and 2%. luxury and premium names all of those names, however, getting pushed down further. canada goose trades down almost 5% kelly? >> thank you as concerns about the economy grow more and more

analysts are concerned of whether companies keep paying the debts. listen to this warning of a slew of downgrades coming. >> for long time we have had such low interest rate that the right thing to do as a company is restructure with more debt. so we have a massive overlay of bbb minus companies overhanging the high yield market. we're looking at a major economic slowdown. that's going to increase credit risk, increase downgrades. we will have downgraded fallen angels coming to high yield. >> well, on that note, bring in charlie o'shea and winny caesar. it's great to see you both. >> thank you. >> winny, in the big picture here, i hear energy come up a lot with the first defaults. would you go that far? >> energy was clearly the most under pressure really for the

past few years in the leverage space and i think that defaults were already pretty widely anticipated by the market this year even when oil was in the call it mid-60s area earlier in the year and with oil prices falling as much as they have and also the natural gas story becoming more and more weak, you know, seemingly by the minute, i think energy defaults are pretty much a foregone conclusion that the point. now the question is, does energy within the leveraged finance universe, is it contagion into the rest of the market is it really signaling that we are actually about to head into a real default cycle which we haven't seen for quite sometime in the high yield. >> we have rates so low and think it's bonanza for companies trying to improve their balance sheets but if you can't get access to the markets it doesn't matter makes me wonder about the efficacy of fed rate cuts. you said energy is a worry spot

for sometime what are the new areas in the credit market? >> the consumer discretionary complex is becoming a new worry spot retailers, restaurants, cruise lines, airlines, auto, anything that requires people to get out of their house and spend their disposable income is really going to be an issue in the near term and the big issue is we have zero clarity on the longevity of the problem so if this is a truly transitory issue and next four weeks or so to get consumers back out and spending the money then defaults and downgrades are probably pretty immaterial but whether that actually pans out to be the case is a really large uncertainty right now. >> charlie, let's bring you in on that note winnie mentioned we are focusing on the hit for consumers there who are you most concerned about? >> anybody but the very best retailers right now is going to be impacted by this.

there are no winners here. there's just degrees of losing given everything happening at the top of the food chain, walmart, costco, target, best buy and probably going to see more impact than the rest of that universe, you're going to be okay. you've got vendor power so if there's supply chain disruptions on a systemic basis, the vendors still apt to ship to you as an important customer and an advantage at the upper end of the rating scale as you get further and further down and if they're in a competitive sector that has the guys in it, there's going to be stress. >> could this be the event that pushes some companies hanging by a thread into bankruptcy what impact would that have? is there any way that the credit reflects that pricing? would those event just be kind of be end of the story >> this is an absolute shock to the system and i don't know that anybody

has priced anything close to this into any credit risk at this point. >> you think worse than what the market's saying? >> it is hard to say we are taking -- our macro board put out a piece this morning taking a first half approach and we don't know what we don't know it is very complicated i don't know if there's a word more extreme than fluid right now but it's certainly at least that and taking as a team and as an institution we are going company by company and we're looking at multiple variables as we assess that risk. >> all right in the moments left is there a name of an example to buy here that you think is overly sold? >> don't forget i'm a fixed income analyst. >> that's what i mean on the credit side of this. >> i would say that the companies at the top end of the rating scale are the ones best positioned in this cycle. >> winnie, do you think anybody's better positioned in the markets giving them credit

for? >> you have to be up in quality right now. if you're going to take credit risk, i prefer to do it in the front end of the curve you know, generally we don't see downgrades and defaults because of near term maturity issues it is much more liquidity management issue in terms of cash flows so companys that have already locked in really cheap debt i think are the ones to come out of this the other side. >> all right give some people a sense of where to look. we appreciate it thanks thank you very much. talking credit today. coming up, as conferences get canceled because of the coronavirus, who swallows the cost is it the organizers or the insurers that may come down to one word. plus my next guest said factories in china coming back online and that presents a whole new set of problems. we'll explain next. heading the break, take a look at the ita, defense etf it's trading now in a bear market down more than 20% from

its most recently high and on onstigor the secd raht negative week. we are back in two

we don't see any evidence of major supply chain disruptions. >> everybody else is having supply chain issues and demand issues. >> we are hearing concerns of industries. >> small business where you will have the pain because of supply

chain breakage. >> most concerned of the coronavirus and the supply chain impact. >> some supply chain delays reported due to coronavirus. >> there may be supply chain problems in certain kinds of companies. >> supply chain is becoming a major pressure point for the u.s. economy my next guest says the key question now is how they can get the products to the front of manufacturing lines as china's factories start to come back to work i'm joined by nathan resnick nathan, welcome. how much jockeying is there for product right now? >> you know, right now every single company that produces product in china trying to figure out how to get to the forefront. diversification is top of mind and china coming online every company's trying to figure out how to get the products produced first. >> where are we see the factories come back and how much are they coming back

some categories you have looked into is fashion, electronics, home goods, furniture. >> that's a key question and what we are seeing right now is that companies are really trying to understand they need to place larger orders, diversify into vietnam, pakistan, india in china we are seeing companies to ramp up and same time factory workers are a bit scared to go back to work and a lot of them haven't gone back from chinese new year to where their factories are located so factory themselves in short supply of staff. >> i would imagine that this jockeying has to favor the biggest companies. right? they have got to be the ones who can exercise the most leverage on these suppliers it means that the smaller ones i'm sure kicked to the back of the line and probably where they're used to being, frankly. >> definitely. that's the biggest challenge the smbs selling through shopify, amazon, affected

heavily because they don't have the power to diversify very fast and so all the larger companies, larger retailers are placing massive orders to really take up all capacity at the factories and seeing the smbs start to struggle and starting to run out of inventory they didn't forecast the coronavirus closure and now we're starting to see a trickle down effect where third party sellers on amazon, you know, a lot of shopify stores starting to run short on inventory and slow down the ad spend on facebook and instagram and google and will have an impactful affect on inventory and also on ad spend because if companies don't have inventory they're not spending as much to acquire customers. >> that's a gao great point. i my by smbs you mean small and medium sized businesses, correct?

they can either way and say in three month's time i get the product or try right now to source it from somewhere else. does it depend on the industry >> it depends on what industry because if you look at the factories in vietnam, india, pakistan, even mexico, a lot of that raw material stems from china and really these factories outside of china they're becoming short on raw material and so it all stems from china and i think through the coronavirus crisis we are starting to see china is the manufacturing hub of the world it's important to diversify the supply chain and at the end of the day the roots of production stem from china. >> final question, nathan. when you were here with us six weeks ago you said the supply chain affected for six months. do we kick that out now? do things look better or worse relative to that time to you >> there's going to be trickle down effect for six months it is great to see factories come back online slowly but surely but i do think companies

will be in short supply and even on the retail side you look at large corporations like apple or starbucks with store fronts across china, they see effect on revenue because the stores are china have been closed for pretty much all of february. >> it is a great point and listening for companies to tack about a drop in ad spend like you mentioned as a result. thank you for being here speaking of supply chains, apple is a big name impacted by the slowdown apple and the rest of the fang names on the move today. josh >> so kelly, fang fumbling again today all trading lower. start with facebook. lowering estimates for the company's revenue in the near term due to the coronavirus as ad projections they say start to decline. alphabet, ad giant, also lower apple in the red, too. you mentioned that ubs saying that the risk of lower demand is increasing for the iphone maker week to date, the company still

in the green netflix down today of the fang names still a best performer for the year so far. back to you. >> josh, thank you now to sue herera for a cnbc news update. >> hi, everyone. pennsylvania's governor tom wolff announcing that state's first coronavirus cases. this as five schools have been closed in eastern pennsylvania after a person with the coronavirus attended a local gathering. >> we received confirmation of two presumed, emphasize the word, presumed positive cases of covid-19 or coronavirus in pennsylvania i'm saying presumed positive for a reason because the results have to be confirmed by the cdc. meantime, flu activity across the country edged down for a third straight week but it's still remaining at high levels, especially amongst children the cdc says that there have been at least 34 million

illnesses and the hospitalization rate for children four years and younger jumped to a record high for this point in the flu season. and at the holiest site in islam it is empty in friday prayers because of the coronavirus outbreak saudi arabia has blocked pilgrims from traveling to mecca since wednesday. you are up to date that's the news update back to you. >> that was an eerie sight thank you. coming up here, cruise stocks cutting earlier gains on a report that the u.s. might take drastic measures to contain coronavirus. we'll tell you what they're potentially planning ahead. the debate of the week should the fed have cut rates? one of the most volatile economists on the street has a simple answer. everyone needs to do their share. he'll explain next i have an idea for a trade. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk

and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪ we segetting to patientscines in record time. at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved. hello, i saw you move in, and i wanted to welcome you to the neighborhood with some homemade biscuits! >>oh, that's so nice! and a little tip, geico could help you save on homeowners insurance. >>hmm! >>cookies! uhh, biscuits. >>mmmm, is there a little nutmeg in there? oh it's my mum's secret recipe. >>you can tell me. it's a secret. >>is it cinnamon?

it's my mum's secret recipe. call geico and see how easy saving on homeowners and condo insurance can be. i'll come back for the plate. saving on homeowners andthere has never been be. to have a favorite food. with new grubhub plus you get unlimited free delivery and cashback rewards for ordering noodles, and noodles... and noodles... and noodles. grubhub plus. free delivery, cash back, and noodles.

welcome back to "the exchange." storms are brewing for the concert industry as more an more events are canceled and shares of an operator hit hard. live nation. let's get to julia boorstin with more in l.a. julia? >> that's right.

there's growing concerns of the concert industry as fears spread in the u.s.and across europe the world's largest ticket seller and promoter live nation, the stock's hitting a new 52-week low. the shares down 29% just in the past 2 weeks and while there have been no cancelations of major sporting events so far it is worth keeping an eye on shares of madison square garden. the stock fallen about 20% over the past 2 weeks as consumers decide whether or not to attend crowded events kelly, back over to you. >> thank you. now we are gearing up for the busy summer season for concerts an sporting events. if they continue to be called off will insurers be left holding the bag? tim, it is good the see you. do companies generally have this kind of coverage >> good to be here, kelly. so event cancelation coverage is something a number of venues and

conference organizers and sports teams will have purchased. now, our review here at s&p global market intelligence, which is the data arm of s&p global, involved the millions of u.s. state insurance product filings that we have in our database and what we found in many cases is that these policies include language that specifically preclude coverage for things like epidemics, infectious diseases and global pandemic as declared by the world health organization so it is very possible that while there may be coverage for event cancelation, it may not cover cancelation in this particular circumstance. >> so which, of course, means that, you know, event operators left holding the bag maybe in some cases a main business they would have specifically had insurance for that is this an expensive type of insurance to get generally

i imagine it will get more so. >> that is true. kelly, as you mentioned, the expense associated with the coverage goes up the more broad the coverage is. so many policies will offer endorsements which are basically optional add-ones to the policy to purchase coverage for things like terrorism, for pandemic risk and so forth. there's also what's called all causes policies which provide a very broad range of coverage but of course, those are the kind of policies to expect that large companies, that large organizers would purchase. there is recourse, though. i don't think we can paint this with a broad brush because there are other avenues that organizers can pursue to mitigate the losses. they can postpone the event. reschedule it later in the year. we have heard of venues accommodating in that respect and also the contracts that

individual promoters might have with venues coulden collude specific clauses basically out clauses that may not have the kind of restrictive language that the event cancelation insurance policies may possess. >> it is also -- as you're describing what's covered and not, you mentioned epidemic and pandemic and knowing insurance my guess is it makes a big difference how coronavirus is categorized. so who do we need to pay attention for what this is called and how much could that trigger in terms of payouts or not? >> well, it's very early in terms of how much could be triggered. there have been a couple of examples of companies that have come out and quantified how much event cancelation exposure might entail in the most serious scenario so a global specialist insurancer indicated that fewer than 10% of its customers in its

event cancelation business had purchased the endorsement, specifically covers pandemic now, companies also may look to purchase coverage that protects them in the event that this doesn't go away quickly. if they have an event coming up in the summer or fall looking to purchase coverage now. we look for insurance companies to ensure that their policy language is very specific as we found in the aftermath of the sars epidemic and h1n1 where companies put very specific language, not just general terms in their policies. they actually used the term of the specific epidemic that was an issue at the time. >> got it. like you said, bottom line here is that very few companies even have this coverage now it will probably be more costly thank you for joining me. >> kelly, great to be here thank you. coming up, we're going to meet a ceo saying he's selling

six months worth of cleaning products in a week can he continue to keepup with demand we'll ask him about that next. heading the break, look at the most searched tickers on cnbc.com 10-year tops the list followed by the dow, the s&p, apple and crude oil round out the top five hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪

there has never been to have a favorite food. with new grubhub plus you get unlimited free delivery and cashback rewards for ordering noodles, and noodles... and noodles... and noodles.

grubhub plus. free delivery, cash back, and noodles. welcome back to "the exchange." take a quick check on the marks which are headed back towards the highs of the session at the lows down 895 at the highs we are down 331 down 400 right now the dow outperformer today, down 1.5% 25715 the level. the other amplgs down more and the 10-year note fell to .66 today. we'll call that a rebound. the number of coronavirus cases reaching a sad milestone now surpassing 100,000 worldwide

meg tirrell is here with the very latest for us. >> 100,000 and growing cases stand at more than 101,000 with more than 3,400 deaths. outside of china south korea, iran and italy have the highest case counts with more than 4,000. the numbers climbing across europe, as well. we expect to get results sometime today from at least 45 people on the "grand princess" cruise ship as they had sampling kits yesterday it's been held off the coast of the san francisco. total cases in the u.s. past 240 including 11 more today in new york meanwhile, vice president mike pence visited washington state yesterday being greeted by the governor with an elbow bump. seattle and king county reporting 51 cases among the nation's hot spots for the virus. larry kudlow saying this morning there are places to avoid for now. >> we heard from the governor of

pennsylvania and said presumed positive how much is that process slowing down what we know about where coronavirus is in this country but at the same time we don't want false positives. >> that's definitely true. we actually haven't heard any instances i don't think where a state or local public health lab tested somebody positive and the cdc negated the results. doesn't seem to be slowing down the process. >> is the use of that cdc backstop making it take longer to know what the real count is because i guess the question for everybody is, you know, are there cases around us that we aren't going to know about baiting however long it is to know before it scares everybody to announce it >> seems like most states are doing that sort of presumptive positive announcement so when they have their own testing they will announce that the cases are happening and then just take off the presumptive getting that cdc confirmation but that doesn't seem to be a hold-up but there is a hold-up at least in terms of really being broadly available testing

for anybody who might want it. we heard from the federal government anybody should be able to get a test with doctor's orders and don't have the capacity for testing right now that dramatically changes over the weekend as commercial testing companies get in the game. >> even over the weekend >> yeah. >> wow all right. meg, thank you for now. the fear of many consumers of getting sick has a sector outperforming this week. >> hi, kelly consumers are stocking up on just about everything as the coronavirus spreads so consumer staple stocks having a relatively good week amidst the wild ride of volatility. up about 5%. second only to utilities so as consumers flock to names like costco and kroger, they're under pressure today but still among the best performers with kroger down almost 5% and kroger and campbell's up almost 13% and costco higher in a big way

today staples down with the rest of the market and conagra is up kelly? >> thank you speaking of staples, shelves across the country empty as people rush to stock up on cleaning and sanitizing products, my next guest produces some of the products saying they're selling six months of cleaning products in a week at this rate. joining me is stew lawrence, a maker of sanitizing and cleaning products sold in the country great to see you welcome irks fir welcome, first of all. >> thank you for having me. >> what is going on making sure that the product is on store shelves? >> this is an emerging situation. we have a great team and partners working just about around the clock to supply what we can last week, you know, we were forecasting february's about 400% over previous year. starting monday, you know, the phone calls were coming in looking for product.

disinfecting, hand soaps if you can imagine toilet paper, a run on toilet paper, you can imagine hand soap and disinfect about the products are doing we don't know what it looks like in the coming weeks or months and continuing to do our best to get the supply out there. >> where does your supply come from how do you make sure to keep getting your hands on it sort to speak? >> yeah. we have an inventory, numerous components and finished goods through the end of the year so we also go beyond that with some come poa innocents most are sourced from the u.s. and not seeing any constraints there. however, we don't know where this is going to go so the constraints could come down the road and we are hoping that we are able to meet demand and hope it slows down, frankly. >> the stats are pretty shocking when you say that your february was up 5x versus last year and 6 months worth of product in a week, are you trying to send

messages to the retailers or for them to tell customer, hey, let's think about rationing? >> yeah. i mean, to some degree we have to do that we have to take care of our partners that have been close with us for a long time here but at the same time we have a lot of new retailers reaching out saying what have you got what sprays or wipes can i get hand soap. we have allocation and trying to get that out to folks in a fair and equitable way and as quickly as possible. getting trucks on the road, et cetera also looking at future production. >> absolutely. is it true that one of the weaker parts is the hand soaps that for whatever reason you think that that would be the strongest one, one thing you hear is wash your hands with soap and water and not seeing that be the very first thing to fly off the shelves necessarily. >> yeah. and i don't have a crystal ball but i suspect that will start to pick up as agencies like the cdc really get through with the message that they put out every

cold and flu season an throughout the year, wash your hands. people are starting do get that. so i think hand soap is another area to start exploding, especially when there's a lack of sanitizing products. >> you could probably charge whatever you wanted for the stuff right now, right >> you know, not even a part of the conversation >> yeah. >> we are still selling to partnershave. >> all right. >> yeah. >> understood. stew, thank you very much. >> yep thank you for having me. coming up, my next guest said rate cuts don't stop flooding and cure diseases but the fed did the right thing. as we head to break, take a look at the biggest losers in the dow right now. jpmorgan chase off more than 5% today. microsoft down 4%. nike down 4% we have much more after this and when you open a new brokerage account, your cash is automatically invested at a great rate.

that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk

welcome back stocks are sliding today with the dow, the nasdaq and s&p on pace for a third straight weekly loss the federal reserve coming under u fire from critics inp

colluding the president for doing more harm than good with this week's emergency rate cut my next guest says the fed did the right thing. the chief market strategist at jefferies. i put a lot on you there, dave, but it's good to see you but is that fairly characterized? would you defend the fed's rate cut this week no matter what everybody is saying about it >> i don't like to say what the fed should or shouldn't do i like to tell our clines what i think the fed is going to do and i try to stay out of the would have, could have, should have stuff. it doesn't matter. it matters getting the margin. we wrote a lot of notes to our clients as this was developing and as the announcement came last friday from jay powell, get ready for something big and fast and likely to be i think we put it out there, something like 50 to 75 and former guidance. before the meeting so i'm happy to tell you what i kind of think is right or wrong and i think as you said, this

was probably a better thing to do than not to but in general, we're just trying to get this reaction and i think we really i think we have a pretty good handle on the reaction i think they've been pretty clear so i'm happy >> let me put it this way. you're right you've pretty much nailed what the fed is going to do, but let me put it to you this way. are they still doing the wrong thing if if they're goal is to calm down the markets here and fix the problem right now? if your clients are saying what's going to get the ten year yield wak up, the economy on a more solid trajectory, it looks like target and fiscal stimulus and help would have done a lot t more good than this rate cut, but you seem like you're saying no, this rate cut will help in the long run no matter what the negative financial market reaction has been so far >> yeah, i think there's always the counterfactual, what if they didn't do it what if nothing came out of the g 7 and the fed sat there. i think it would be worse.

so i do think they help ed with the margin i think some of the comments are that this are reaction function is still very much in play we have another 50 basis points that are priced in and nobody is really push iing back on that js yet. so i think what we'e're watchin waiting with data. some rallying resources around e fema or any emergency type structure. i used that in my commentary when i use medical, but around the health and human services department or any governmenting agency to get sort of resources on the ground to help people and i think that's a completely legitimate point and i think jay powell made that point we're not here to cure viruses when we're looking at policy or coming at it from financial markets, but we are here as a fed to try to get the markets in a sensible place or functional place. >> yeah things seem to be

functioning worse than before. undeny bly, this is a much bleaker outlook than it was going into the action which was tuesday morning. >> yeah. i agree, but again, i'm going to play the counterfactual. if they didn't, i would argue it would be worse maybe that's a cop out because we don't have the answer to that, but i think the data has foten worse. just ass passed 100,000 cases we're closing schools here in new york people stocking up your last guest was talking about the runs on toilet paper the it's a real phenomenon and hit to consumer confidence i think the fed has downgraded their forecasts substantially. the risks are much greater this is an uncertainty they have not prepared for and i think they could have done one thing differently that i think would have helped the market understand why going into the meeting and that is that they really don't have a lot of risks from not acting. meaning they've missed their inflation target for eight years

running. they're talking about this framework change that would be easier policy in with or without the coronavirus. >> how many, they're going to have to buy every bond on the planet at this point they're practically, market's expecting to cut almost to zero in two weeks and for anything else that ever happens to the economy after that, if it's downside, they're going to have to buy everything in sight >> i think they have a plan. there's a conference today in new york that i was just attending third-degree a few fed presidents and voters. and they were pretty clear i think they might have been bouncie around on tv, at least i commentaries i think they have plan i think char lie evans has made some good points we should know what their game plan is. go to zero restart qurk qe and if there's the 133 story line that developed to help small businesses, they'll probably work with the treasury to get

things done. we know what's next. just a question of how bad it gets >> the fed is becoming a whole economy. david, thank you for being here. >> thank you for being here. >> turninging now to the cruise line stocks. they cut their earlier gains on reports that the u.s., get this, is considering ways to discourage ways to take cruise es some of the biggest operators are down 30% or more and vice president pence is scheduled to meet with cruise line ceos tomorrow seema is here with more. do we know anything more about the idea they might discourage people from taking cruises >> in this meeting tomorrow, these executives will will be t unu vail their safety and health measures they're putting in place to minimize the risk of infection as we see the number of coronavirus infections rising around the world are they using all the options

they can we're now u watching another, the grand princess, off the kes of california, where fewer than 100 passengers have been tested after displaying flu like symptoms it comes after the diamond princess off the coast of japan. that was really seen as a black eye for the broader industry so that's why you have officials meeting tomorrow in ft. lauderda lauderdale >> could they say we're sebding all the ships hope we're taking no cruises for a month and wouldn't mind the government giving us a little help. >> that remains a big question there would be huge financial impact to the cruise lines if that were the case they're already suspending a number of sailing, canceling a number of cruises to take on those precautionary measures right now, if you're displaying flu like symptoms, you're not getting on a ship. if you've been to china or italy, you're not getting n. but what if you're a passenger you have u coronavirus but you're in the exhibiting symptoms that's a big risk there and you're seeing that being

reflected in the stock price >> so much more to do to be consistent about this, but thank you. the latest there and that does it for the change today. next hour, we'll look at whether the cruise industry should be canceling cruises in the wake of coronavirus. we'll talk the a former chief of staff at homeland security about it i'll see you on "power lunch." we start with a big market sell off what a day, what a week it has been stocks dropping to end this wild week the dow down b about 500 points right now. after yesterday's thousand point decline, but amazingly, stocks are clinging on to gains for the week on the strength of those two big day, monday, it wasn't wednesday, yes, it was meanwhile, the bond market is flashing red yet again the yield on the ten-year treasury collapsing now to record lows as wall street scramble