underperforming. i think it's safe to say that they are forecasting higher risk of reseg i don't know if it's a fait accompli i think it's prudent to remain in fixed income given the volatility in stocks. >> r.j., thank you so much thanks, everybody for watching "power lunch." >> hang in there "closing bell", the last hour of the week, right now. >> well can um to "closing bell." objection densal down 15%. the worst performing sector this week, oil is down a massive 10% just today we are at session lows, down 3.7% on the now nen tiff for the week as a whole.

coronavirus fearing weighs on the market, surpassing 100,000 worldwide. we are expecting a briefing from vice president mike pence a bit hear this evening. though that survey was conducted in the middle of february before the outbreak took hold in the u.s. in just a few moments we'll talk about russ cost rich he says the u.s. consumer remains strong and where he is putting to work now. dan, what are you doing? >> not a whole heck of a lot week on week, there was a bit of optimism.

as investors star thinking about how to allocate towards equities visibility will be the big point. i think -- i don't think we're going to get that anytime soon right now. that was the low for this move you had a strong reversal off of that we set ourselves up for a powerful rally, but most of that snsht has dissipated, so some say you will have to retest the low, and we're doing it right

now on a relatively tenuous way, so i still think, given the stress in credit markets, stocks are not yet convincingly saying we're making a stand here. >> i feel like we have to mention oil here a 10% decline brings year-to-date losses to 32% >> i think it's a huge part. just one point about stocks. if we go back to where the stock market topped out in jan we're 2018, we have made no progress in two years you know what has made progress? megacap tech when i sigh microsoft down almost 6%, i say to myself that is kind of panicky it tells you the groups that have lagged -- energy, financial, going from 52 week highs to lows, it tells me megacap has more room to the

down side. >> utilities, staples, clearly a defensive theme. seema mody has an union date on travel but bob, first, kick things off with you >> wilf, despite these 1,000-point days in the dow, the s&p 500 is only down about 1.6, 1.7% for the whole week. we'll see where it closes going into the next hour or so financials are the second biggest laggard. jpmorgan the worst performer, down 7% overall. most of the losses today exxon, i keep emphasizing 7.7% yield. that's a new low

home depot down for the day, but up for the week. there you see new lows for some of the big bank names. guys, back to you. >> thanks, bob bertha coombs is at the nasdaq marketsite. >> you know, the nasdaq managed to eke out a fractional gain last friday. not looking like it today. apple is holding on to a gain for the week, but video conferencing zoom swings to a loss today and for the week even as more major conferences go virtual. health care has been a standout bucking the trend with vaccine and treatment plays up 13% to 14% this week each, and teledoc continuing to rise a number of the stocks that are in the green, up big like cheekcake

factory, air loons are bouncing off new lows airlines down about 14%, 15% for the week, wilf. remarkable intraday turnaround for them. mike as today's market dashroared it's been sort of a rocky descent. your best-case scenario is a trading range to develop here. maybe sideways well, like i said, that's kind of the best case from here there's nothing on to say this is that initial low necessarily. indications that some kind of a range is developing you can trade against. the other alternative is like september into the fourth quarter of 2018 when it gave way. look at a shorter-term view it

shows youed levels were now contending with. there's pain out there definitely a lot of high-stress repositioning going on >> we've always been discussing the vix as one thing, yields is the other. >> you hear everybody say that across asset classes that's being shown in credit now, oil being down is a big part of that story, not the whole thing. i do thing that's becoming a bit of a dicey situation, when you're saying which market is leading, which one is follows,

where eventually the opportunities might pop up they a pain threshold? is there a point where you would just -- >> so everybody and their mother identified the level where the s&p 500 should bowen, so to mike's poinds points we're going back there i'll take you back again to the 2018 low again in december that's it is last time we that's 2350 i know that's a ways away from where we just we are at 3400-ish, but this move overshot in january and february all the way back from october to the up side there's no reason why it did not do so to the down side. >> if you look at what happened and what got us to the v-shaped recovery, it was the fed, jay powell changing, and acquiescing.

okay, okay, maybe we're too tight. the fed made its move. >> but the market is saying the fed -- >> i'm thinking that the market may be needing something more than just the fed here to calm down >> i think they made a terminal move last year they did not leave enough for a real crisis. ten years after they had gone to basically zero interest rates. this is what you were saying the basis points for. we have to talk about oil. worth day for oil in five years, touching the lowest level since 2016 yesterday, instead of opec, he got out a deal, we don't have a three handle on oil, but maybe

not far off. we're overreplied. this is not complicated there's touche oil and so opec med today. they could not get a new dale. russia refused to sign off on it iran called it the worst meeting they have ever seen. the minister is the longest tenured opec guy he knows from when he speaks when you leave without a deal, you see prices do what they did today. i notice wilfred opened at occidental 14 or 15%, the -- that's hitting the high-yield debt market jeffrey says 15 billion was taken at a high yield fun. that's disproportionately energy

debt i'll leave you just quickly with this gas prices are down, so the consumer will have a little more money in that pocket, sara you'll see jet fuel prices it was at $2 a gallon in january, so to at least airplanes will have a bit of a cost savings i guess in weird way you look at oil prices in general whether it's natural gas or all the plastics we use. there would be a deflationary aspect to this, which might help the consumer a bit i'm struggling to find something there. >> two quick price questions one is how many days in your career do you remember a 10% move in the underlying commodity. secondly, i know we have broken the 2019 and 2018 lows in wti, but where are we relative to that big scare we had in early 2016 >> zero days that i can remember, well friday. there may have been a day in

there that that can happened here's what's interesting. i know, you know maybe dan or mike wants to look at the charts on this. oil stocks, the xop, i don't know what it is down right now who knows, it doesn't matter exactly what the number is it's trading beloud where it was when oil hit $26 in 2016 if you do a five-year chart of the xop, it's lower than when oil was $20 a barrel lower than it is now. so either the market, wilf, is saying things will get much worse or the debt scare has really spooked oil and gas investors to the point it's the point of no run one thing to remember, many companies are hedged out at higher prices, so they may not be as impacted as we think about the commodity drop just something to put in the

back of the head >> brian, good stuff one sector that could possibly benefit from lower oil prices is travel, but they're certainly not benefiting in terms of share price moves. >> hey, seema. >> all three cruise lines reversing early gains that the u.s. is considering ways to discourage americans from taking cruises. it does come ahead of vice president pence's meeting with cruise line ceos tomorrow asp as a number of coronavirus cases rise, cruise cancellations have been 22% higher than normal, according to liberty travel, as the industry faces its biggest challenge yet. with all three cruise lines down today, they're trading at multiyear lows with that, take a look at the valuation picture for royal caribbean, carnival and norwegian, trading at needily -- six to seven times

forward-looking he earnings. as we await status of the "grand princess" owned by carnival. we're still trying to get word on if there's any confirmed cases. the industry, of course, trying to avoid what happened can the "diamond princess" off the coast of japan back to you. >> are they giving full refund >> that is a great point both karn real and royal caribbean rye vised their apology. up to jell 21st you can cancel 48 hours in advance. same thing for carnival, i think. certainly those policies are changing on a regular basis. they're trying to make passengers feel comfortable getting on board, implementing new safety measures, but something we were talking about on "the exchange" today what what if you're a passenger, bhae the virus, but not displaying

symptoms that's certainly a great risk. that's reflected in the stock prices >> seema, thank you. dow is down about 800 points we have 45 minutes left of trade. joining us is russ koesterich. russ, what are you telling your clients at blackrock at this point? >> we're telling them right now the bottom is uncertain. you have a hard-to-quantify risk you know, there are some silver linings. valuations have come way down. as we found out this morning, the basic structure of the u.s. economy is sound we don't know the effect of the virus. we know the labor market is strong there's an additional tail wind from lower rates and even lower oil prices are one more plus for the consumer if the virus starts to peak in the next few weeks, we do think we will see the market respond >> russ, what do you think has

been discounted at the moment in the bond market and also in the equity market, and is there a disconnect at the moment between the two? >> i think that's a great question the bond market with yields at 70 basis points, you're starting to discount an awful lot of bad news there's structural reasons for it this is coming after a multiyear run in bonds and demographic tail winds, but nevertheless, the collapse in real yields that we have seen, in addition to the run-up in gold, the run-up in the yen tells me there's an awful lot of fear in the market. that's partly reflected in equity markets. russ, what do you think makes the market stop going down at this point? >> i think it's a couple things. obviously the past, you know,

action by officials, particularly the central bank have been the pivot. that's what stemmed the bleeding in late '18, but i think this is different. the reason it's different is the reason the market was correcting in '18 was because of tighter financial conditions when financial conditions looked like they were going for ease, stocks rallied unfortunately it's harder this time you need to be a more coordinated effort by governments about how they'll backstop different industries, how they'll backstop some issues around the industry, and hopefully a read on the virus, and hopefully we'll see that in a few weeks as we get into the pring. long term would you buy bonds? >> i think bonds have a part to play in the portfolio, you know, but i think the yields at this

level are challenging, but i wouldn't be rushing to sell bonds. as we have seen, we all would have thought two weeks ago that bond yields were ridiculously low, they continue to work as a edge i wouldn't be rushing to people them, but nor would ibe sellin them. >> all right thank you. and don't miss tonight's special. still to come, knnuveen's bb doll will tell us where he seeds opportunity. that's still to come. so we've got about 42 minutes left in the final hour of trade, in what happens another wild one for the market. it's been all week massive swings look where the dow finished every day, up down, up/down.

the week was positive going into today, but today's massive move against takes us back negative to the week. add it all up, 14% for the dow off of its record highs, when only at, what, three weeks ago 4%, 3%, it's becoming the norm. >> s&p was briefly down 4% about 10, 15 minutes ago it's rallied back, but as you said, still down for the week as a whole with about 40 minutes left in the session. turning to the banks jpmorgan jamie dimon underwent successful emergency heart surgery to repair an acute aortic dissection. gordon smith and daniel pinto wrote, quote -- the good news is it was caught early. the surgery was successful he's a wake, alert and recovering well. today he's phoned in and spoken to certain executives, and is

expected to make a full recovery this came on suddenly yesterday morning, clearly could have been much worse it's not the first health care for dimon, who is 63, turning 64 next week. he was diagnosed with throat cancer in 2014 he made a full recovery. even while he underwent eight weeks of chemothamp, he still led the new york-based bank. this time, though, lee raymond said, our board has been fully briefed on the developments, and has asked daniel and gordon to lead the company as jamey recoup rates. thankfully that recuperation appears to be going well share price today, just checking in, is down 6%, of course all the banks are down a bit more than the rest of the group, whether that's a temporary ashes of jamie dimon factor or not, we'll have to see. >> obviously good that he's recovering well, but when you have these health scares, especially with such a giant like jamie dimon, make you

wonder what the succession plan is with a company that does have a pretty good deep bench. >> certainly we often discuss that deep bench. clearly the board has said this in the past. they already have a plan that thankfully doesn't have to be called into action so they already know who the person would be if it was an imminent change. that would definitely be one of the two co-presidents, gordon smits, who is in his early 60s and leads the consumer bank or daniel pinto, who is 57 and leads the investment bank. if, of course, mr. dimon comes back and stays at the helm another three or four years, others come into play. if it was sudden, it would be one of the two dough-presidents. >> no reason to think he will be leaving early? it's early to tell. >> of course there's great -- if you snapshot, though, from the start of the year to today, would mr.

dimon's commitment to another five years have suffered there's two big factors to point to that would likely at least soften your commitment a fraction one is of course the health scare yesterday. the other one, if we can bring up his share prior performance, if you've been at the helm for 15 years, and you've absolutely smashed the competition during that period, up 170% for him we s&p is up 140, the bank index is down during that time would you want to take this bank through another recession, another economic cycle when the share price could collapse and your legacy could be diluted clearly the share price performance might make him think about that, but at the moment the plan is five more years. >> essentially mirroring bob iger >> of course we wish him a

speedy recovery. banks getting crushed, falling 9% this week alone the regional bangs -- let's bring in let's jump to the worst case you have done, this 100 base points total rate cut and a recession. what does that do to banks earnings >> it takes earnings down 44%. let's call it round numbers 40 we have six inputs only two really matter one is interest rates, down ten, everything else nets to kind of a rounding error when we started this exercise, we took rates down 100 -- 50 biopsy on fed funds, so if i go to an investor and pitch him that, that's a moving target. that 10% is still creeping up. it's not terminal, but could

easily about he 50%. the 30% on credits tha that's a tough one, it's binary. >> i would say 62% chance of a recession is now priced into the bakers stock. >> let's take bank of america for an example what we call or dark and stormy, but really recession scenario, we come down to two pucks people tend to put low multiples on low

earnings, and then you take in between that, if bank of america was at 20, at 25 or wherever it is right noup, that's where you get close to that 60 we replicate that across 25 banks so we're not being overly precise on one bank, but a brought sample of the whole group. typically you want to buy ahead of the last round of estimate costs. the banks react quicker, but again, the challenge right now, you take a bank with a big commercial loan book i would love to identify it once i identify the problem loans, and then buy it at that share price. i don't even know what the problem loans are. >> well, energy is not having a good day. >> energy is a clear one. >> yes other people are talking about

buying yielding stocks and saved dividends, a lot of the banks are those different safe >> i think some are. i think we have to remember about the banks, even in our dark and storm i don't scenario, they're all profitable 60% is buy backs you've got to cut all those buy backs before you start worrying about the dividends. >> dan, to you >> the buy backs is a huge reasons people started piling into the banks, so i don't think people thought it would be a question after the case was made to be trading over book. so i think given the uncertainty that we're talking about with credit, energy, geographically, i don't see why you step in here the one everyone says jpmorgan, jamie dimon's stewardship since the financial crisis was a great reason to buy that stock

to me. >> what about the case that brian made here we are now, that inversion was eight months ago, yeah the yield curve steepened a bit, but not for good reasons i don't know how anybody's not pricing in a recession over the next few quarters. >> we also obviously it's very dated. manufacturing limped into the independence of last year. >> right, but we're a services economy. manufacturing we knew was stuck in the mud you can tell me

that's a great silver lining no one is flying right now and that trade war deal was nothing, so we have a situation where the global economy will be stagnant for 2020 take any expectations here and throw them out the window. >> brian, thanks for joining us. >> thank you we have 32 minutes left of the trade. off session lows time for "word on the street. needham say facebook is virtually 100% add-driven, but 30% to 40% of the revenue is from adrisk categories like travel and retail. it also notes that cutting facebook ads is often the fasters way for clients to reduce costs william blare upgrading which pot lay, the pullback in recent

weeks, despite no discernible change the firm also expects continued margin expansion with the first quarter marking the strongest margin for the company in five years. ubs saying the global electric vehicle shows strongest interest, they found that 36% of electric vehicle purchase intenders would consider buying a tesla. the stock is down 4%, of course, alongside all of the market. dan, tesla has bounced on the days we've seen bounces. >> just a classic short squeeze. when you think about all the things that were leading up to the national correction, this will be a footfeet when we look at what happened in january with the stocks when beam were worried about the sheet, i was worried good the fact if a recession comes, this is a company that's selling, i don't know, 50,000, $1,000 are 00,000

electric vehicles. with crude oil at $40, i don't see the value proposition. >> the needham call on facebook is interesting, because now we're starting to be to knock-on effects. it's ad spending, because look who is actually advertising on facebook and google. now we're starting to get to bradder economic story. >> it has a lesson in terms of the incremental drirchs are drivers, though google, i think, because search is such a key piece of their advertising pie, that you would obviously be searching for a -- facebook, some of that modest premium being taken out of the stock arguably is being used as a source of funds, kind of the way microsoft is now i'm not sure it's purely moving on downgrading the long-term earnings power. dow down 731, new commentary from fed officials let's get to steve liesman steve? >> sara, thank you

two federal reserve officials hinting at the possibility of additional federal reserve rate action john williams and eric rosengran want to see some policy action, but suggesting that the federal reserve is not done. here's john williams,frist moments ago. >> essential banks, including the fed, have an important role to play side by side with the health care response, with fiscal authorities central banks have an important role, both in providing support for the economy in pursue of our due all man dade goals obviously also in supporting effective functioning of financial markets and financial stability. >> eric rosengran had earlier said the fed needs to think about using additional tools those would include, for example, a wider array of asset purchases beyond just treasuries

and agency-backed securities but finally sid there are places or parts of this issue, this crisis that's going on, where fiscal tools can be more effective. both suggesting the market may not be wrong coming up in a couple weeks, depending on the trajectory of this virus >> steve, it sounds like they're spooked. it sounds like whatever, they're watching the market, worried about the down side scenarios that coronavirus could have on the u.s. economy, supply and demand >> well, i mean, sara, one person spooked is another person's prudent planning. if you're in a position to wield a powerful instrument like quantitative easing or the interesting rate tools, i think you ought to be thinking about what's happened with the stock

market ed just as i was coming up the elevator to this shot, a leading economic for a big investment bank said they're going to zero. he said that with a certain conviction, and then of course the door closed. there's a lot of talk about that, sara they might be spooked, but you would think also that you would be paying your government officials to be thinking and doing this kind of planning about what comes next and what stages you're communicating to the market. >> maybe a more appropriate way of characterizing it is they're concerned about the economic outlook and the impact of this. >> oh, yes, yes. >> therefore, they are ready to move and already have done so. >> yes, in that sense -- i'm sorry, yes. >> they're not like larry kudlow saying, don't panic, everything's goingto be okay. >> no. they seed the possibility of ser outcomes from this

i think they're saying it's not -- jim bullard earlier in the day said the main response here is a public health response, and a very wide public health response that involves government, involves health agencies, involves businesses, schools, families and individuals. he thinking it will be a very, very powerful response that he thinking by the market is underestimating. at the same time bullard was not shy about saying if all of that is not enough, then the fed is ready to come in in fact, rosengran said if the fiscal authority discusses not come in, and we've been talking about this all day there's talk about the administration speaking about this, then he'll have to think about what we have to do in that context as well. they can get 17 or 15 people in a room and make a decision right away it takes a lot more for the fiscal side to make that kind of choice. >> steve, thank you very much.

for that, whether it was that news or not, we've had a nice rally over the last sort of 30 minutes or so. we hit the low of the session three minutes into the slow. it's now down 2.8%, so we've rallied. there's a the sector heat match view that hasn't changed in terms of the order. staples, health care continue to outperform energy is still down an enormous 6%, with oil prices down 6%. coronavirus virus fears are weighting on the market. yields on the ten-year hitting another fresh low. oil turning in the worth day of five years warning about what may happen to corporate debt if we

do see an economic slowdown. >> for a long time we've had such low interest rate that the right thing to do if you're a company is change the capital structure by putting on more debt so we have a massive overlay of triple-b-minus companies hanging over the high yield market we're looking at a major economic slowdown. that will increase credit risk, increase downgrades. we'll have fallen angels coming into high yield. let's send it over to mike san toll id. this would be a business test. those concerns definitely filling into the market. one way of visualizing it is look at the etf. here we have the 7 to 10 year.

obviously this is a proxy for those credit spreads this is a difference in the price, but if you see, you definitely have pronounced weakness in the hyg. i would say it's about 4.5% off its highs. definitely prices going down so it's getting in there other things like the credit default swap indexes are definitely starting to widen out, too. essentially this is -- it's leverage companies and all the rest of it you're basically at a two-year low, down 20%. it's been plenty volatile, but held up bert in a very wide

sector and style divergence within the equity markets. >> dan, do you get concerned when you see moves like that in credit >> yes i'll just tell you this. if everyone is waiting for some sort of capitulation, and you think down 1,000-point days are a lot, just wait until you see those things blow out. when mike's here in a week or two and those spreads are that much wider, equities cannot capitulate on the move that they've been going back and forth with the last ten days or so get ready for a down 2,000 or 25 hundred dollars-point move in the dow jones industrial average. >> here's my question, mike. how do we read into the fact that stocks appear to be leading credit, which is not what happened in the crisis, but that was a credit crisis. >> stocks certainly were arguably more highly valued. they react more quickly. i do think you can say that. basically you're never going to see a 12% six-day decline in the value of all corporate debt,

right? >> so i do think it's a sentiment thing, trying to read the latest klees on monetary policy you had really strong inflows steadily that as turned into outflowing we saw something similar in the -- that wasn't immediately cash flows were compromised, but the equity piece goes down and there's a psychological butter, if you have very high equity values if you own the debt of that company, even it's not really paying you off. when that gets diminished, you suddenly have to rethink your premise. it's been another volatile week, an emergency on if interest rate cut on tuesday, and coronavirus virus cases continuing to rise the jobs show the that the economy started in very good shape. the white house says our economy

does remain strong the virus is not going to last forever. the human side, a lot of difficulties there, i get that, i understand that, but still we have a strong economic base. well, with the dow now down about 14% from its high, was the rate cut the right move? should we expect more? joining us is julian coronado with macro policy per peck stiff and steve solznics julia, i've read more -- how likely is a fiscal response? and what does it look like >> i think that's the big problem. the more we hear the administration say everything is gob to fine and not actually doing anything to, you know, organize the response and contain the outbreak, i think the more we climb this wall of worry. the rate cuts aren't going to

help the root of the problem, which is the disease and the possibility this isn't short-4ri6d, that it spreads, that it's very disruptive. that's why we're starting to see worries in the credit market, and some of the dynamics are very worrisome there's a lot of illiquidity there that can snowball, so i think we're looking at a serious situation. people are starting to worry about businesses going out of business because activity is so disrupted for so long. >> are you talking about small businesses >> all kinds of businesses think about -- you mentioned the energy sector. look a where energy prices are the energy sector was already struggling when prices were above 50 in the low 50s. so now, if prices stay where they are now, you're going to have some energy companies having a very difficult time so we're starting to see some

much deeper concerns thookd then build on themselves. >> steve, what are the key levels you've watching on the s&p 500. >> you've been looking at the s&p. you ran the banner before, saying we're down to the lows since october. from a perspective point of view, that's not very long we spent more around the 2800 level. gyrating around there. that would be the level i would be looking for for real support. beyond that we're giving back what we gained in the fourth quarter of last year. >> i think you said to be lows confirmed, so we continue to meander right noup in if we took out last week's lowest lows, that would be

worrisome. with all the. to kudlow's credit, we soon seen any impact in any major data release, especially if you look at today's job reports. >> it's january and february >> we are coming from a solid footing. >> absolutely. we don't know how much disruption we're looking at. a lots of cancellation of travel, lots of cancellation of activities, and, again, we are just starting to identify where and how many and how bad the situation is we're seeing universities close down, schools close down it can be very disruptive. the less we know, the more we

worry. so i think the fact we haven't had testing available, and now we're like going to have a lot of testing and a lot of stuff will come out, we haven't taken any preventative steps, so it's spread communities spread all over the country >> i have not heard you this negative in a while, julia >> while -- the strong's base report was fabulous. we started a year on a good note every country is impacted in some way, shape or one, these

things and you get a knock-on effect this is it is brink we're on we haven't gone over it yet, but i'm much more concerned than i was a few weeks ago. >> steve, quick final record >> first, how fragile the system was, and i think that's somewhat fed induced. i'm very concerned of a lot of credit that have nod are a real-world test. that remains to be seen. we'll see if we stay there or not. >> 2947 in the s&p steve, thank you, julia, good to see you as well. and don't miss our special

report 15 minutes left to go. here's a check on the "closing bell" big board. going into the final hour. they are getting hit the hardest. double-digit declined, getting hit the harders. devin energy down 17% on a day we've had some looks at this in the past >> these are the sorts of things you just don't like to hear.

there's a massive reaction to this health scare. that if you want this stock market to capitulate, the whole notion that you think that if we've been having 3%, 4% days that it's going to do so history has not shown that to be the case we just roll out a bowl and says this is a stock, to break that 120 level, it gapped up above last april when he announced their new streaming service. that's a level i would be looking at here it is down 113 the james bod movie got pushed out. >> wilfred is current on that.

>> we know that josh brown anointed him as the next james bond i'm going to try out what i do and so i think if this -- they're going to, and this would be a great opportunity for them to demonstrate that and flex a bit and show what they've got. >> i've been very fortunate to come on your show over the last few months, but it seemed like one of the most obvious trades over the last six months or so they won't be too much hawkish here on on the i think the tlt, so it's

opposite to long-term u.s. treasury rates has just blown out. i think it's gotten done i think if you're long the lt and pressures u.s. treasury yields, i think you turn that trade around a bit and see a snap back. we have 11 minutes left in the trading day. we are now going strayed into the "closing bell" market zone s there are the down moves, which of course have been sizable. mike, quite an impressive

impressive 40-minute bounce. >> these little spasms of highly stressed activities and a bit of backing away from the edge but the market settled back into an area where it basically was down on the week and it didn't immediately bring so we'll see given that it's a friday it's not the worst thing, but definitely not a retest, in my opinion.

>> they say it's ramping production where necessary, and is in close contact with retailers. they are seeing increased demand in several categories, and have adjusted production and logistics operation to ensure they can continue to service customers. there's a substantial, they say china is not a meaningful source of pumps and bottles, most come from north america we would expect to continue to

see -- and we got new numbers just this afternoon on what americans are actually hoarding -- masks, sales up 114% over the past four years, up 173% hand sanitizers up 313% look at what else consumers are buying oat milk is up, first aid kids, dried beans all sorts of other food those stocking up on sanitizers are also much more likely to buy disposable diapers, baby food, prepared food, dry mixes, vegetables and deodorant one reason, the staples have held up better than the market >> i would look at a walmart because of the control they have, all those names that you

mentioned. i think it does we had, but it also does well in an environment where people are just shopping as normal. down from the recent highs on the dow that's a 700-plus swing. we were down 4%.

we basically weather the possibility of another retest, so much more lower intense legitimate selling this time, last week, the market rallied into the close we saw a huge move just like we're seeing now we were saying that maybe it's not such a bad thing that the urge is not to dump everything into a weekend it's definitely good if it's a two-way market and if the market is trying to settle into a sideways range and basically allow the fevers to break a bit. we just don't know if we're there. a day like today gets bulls and bears with plenty to think about.

and the financials or the banks broadly, the kbw index down 26%. >> yeah, i think it goes to the fact that we're talking about this massive 3% rally in less than an hour here. that could just by window dressing, but when you think of the instrumental problems faced by the energy sector, you didn't see crude oil real loy you still see high yield until pressure, so though stories will stick around for a bit i don't think a one-hour short squeeze into the close will do much to change that. i would just say this. again, what did we just talk

about at disney or walmart this isser the names you want to be picking ought >> i think you stick as to quality here. >> you have more on the market internals? >> yeah, which is pretty significant. take a look at up/down volume. i'm not going to call this an official reset usually you want to be a little less lopsided selling. we're not anywhere close to a 0% down day that's good. look at new lows versus new highs. last friday, i think it was last friday, we hit almost 1,000 new lows, so this is on balance a bit less intense, though very, very lopsided. we're still obviously in sell mode the vix, i keep talking about it, definitely have massive,

massive, urgent hedging demand for the indexes. that will not show you the intraday charges, but basically up to 54, middle of the day. it's very high when you get up towards 50, normally, even when markets calm down, they need sideways time to chop around and get a new base built. >> we've talked about all these factors, where bonds are and where credit are, and we said at the top it was important to see whether we traded higher on the week, it looks like for the s&p -- >> i think without a doubt, an enormous amount of selling happened this week it's not as if we needed automatically to go down more to account for what we're going to find out on monday also look, look at the reversal in bond yields was day the final people in climb max. it seems like nothing, because it's still below 1%, but it shows you at some point we have

reached they extreme extremes and backed away from them. >> this really is really something. down 140 points, session highs, we have come back from a deficit of almost 900 points, where we were just before the final hour of trade if we pull up the bond market as well, we have seen this pattern where bond yields have led the market some signs of stabilization there, but again, mike, it's been a fakeout before, but as you can see in the last few moments we have reached session highs on the bond yields as w well. >> does the market have to go down to immediately account for what's coming? we don't know. we don't want to make predictions. i think it's been a very good policy not to over-interpret or extrapolate any one day. >> i know you're not -- dan, you're pretty bearish -- >> listen, i'm skeptical i don't

love the fact that two tries are closing on high. i think this administration doesn't like an empty news cycle, and i think there's some goofy stuff going on i'm not one of these protection people that, did you something happened here and there was nothing fundamental. >> clearly we have rallied significantly, but all of the sectors do remain in the red today. so the selling is still broad. oil is still down 9.4%, so still a sharp decline there. and the that is down almost 1% that hasn't flickered much we have 40 seconds left of the session. bob? >> the important thing, wilf, you won't see many days when the dow moves 3% in about 25 minutes. i've seen half of the dow jones industrial average turn positive

3m even now positive the s&p closed last week around 2954 we should close up for the week on the s&p 500, and stupendously volatile week. it's going to happen closing at 2970, up for the week, even though down 55, dow jones industrial average closing down 253 points, well offer the lows if you're just joining us, welcome to "closing bell." i'm wilfred frost. >> and i'm sara eisen along with mike san tolli. >> what a roller coaster week and session. there is the dow intraday, down 900 points at the low, which was just 50 minutes ago. we rallied massively into the close. the s&p really stands out, given

that it was down 4% 50 minutes ago. it closed down just 1.7% it took us into the green to end on the week. the nasdaq up ten basis points the dow up 1.8% for a week as a whole. >> health care doing the best of the bunch, energy doing by far the worst. a terrible day after oil surprises slid 10% after all that bumpy right, hard to believe we're positive. looking at the s&p, for instance, now 12.4% away from the record high. for the nasdaq about 13% or so we will discuss all these market moves with bob doll, who will tell us where he sees opportunities amid the volatility. >> joining us jill carrie-hall from bank of america merrill

lynch. still with is dan nathan, principal at risk --, first to you, mike, short covering? >> there's always short covering involved i don't want that you want to necessarily pin it on something artificial or flighting. the market has been under a fair amount of stress i do think somewhere in the middle of the day we got to at least a minor sense that the rest of the capital markets were in full freakout mode when you have the ten-year yield go to -- and credit spreads were blowing out. i still think that you shouldn't expect the market to kind of pick itself off and shoot higher toward the highs from here keep in mind we were up/down, up/down, alternating every day this week. so it's probably a good thing we respected the lows from last friday and didn't spill right through them

i could find some positives, without a doubt, lower intensity selling on this go-around, but it's hard to say we have necessarily built in a margin of safety >> it's definitely been a more volume tiff couple weeks than you would think. but we cut or s&p start earlier this week to 31 hundreds for year end so, you know, we think it's going to be about picking your spots within the market this year, certainly a lot of areas, in terms of opportunities. i think at the single stock level as well as within certain sectors. financials are one that we've been overweight, where certain lower yields have been a challenge, but given the demand for different income, given how

low yields are, financials are the sectors that offer the highest combined total within the s&p. so that's one we have liked. utilities is another secto we've been overweight on the defensive hedge. so certainly some opportunities. but we do think there could be room for down side on the market long-term averages below that, 15 timeswe have troughed out even 13 times at prior selloffs, so could be more down side risk. >> how do you put a multiple on a market when there are just big uncertainties as to the economic damage that the coronavirus will bring to the u.s.? >> we cut our s&p 500 forecast to 4%. when you look at prior eps recessions, e po s usually falls by about 20% that's sort of the bear kales. if we're not going into a recession, we do think given how

much the market as fallen, 13%, 14%, that obviously a lot of that is being reflected, you know, there are spots in the market where we see more earnings risk, but again a lot of areas are increasing thatsh. >> where has the market taken down earnings expectations >> the form's consensus has come down that much we're still looking at projected gains, the southbound i think is still formally speak, we're looking for up side. i don't think we've enough information in terms of how business is proceeding from here you have to a lot of change in the formal estimates if i look at the cyclical parts of the market, the market hasn't weighed in they've taken them down in advance of that. >> does the rally we saw change your perspective as to whethersh about i buying or selling? >> actually pretty bearish the most important things, that the ten-year up 15 biopsy, week

over week, i'm looking at energy, crude oil down 10%, looking at -- we were talking about the high yield, but there's nothing bullish -- listen, my point is that, listen, we're back to where we were in october, okay? i theo the rally from late orbit when we broke out was stupid what happened last year, we saw the three 25-basis point cuts and the fed started expanding their balance sheets that's where that came from. >> we also saw pretty decent economic growth. >> we didn't though, sara. gdp in q3 and q4. >> better than people expected. >> it was at the ten-year average, and when we looked at the job gains, everything was talking about 273,000 today, that's well above what we've had over the last five years, but if you kind of normalize it, the six-month trend is back to the -- we wouldn't even be having this conversation if the fed didn't start cutting rates

and start expanding their balance sheet in the second half of last year. >> i love your passion stocks wrapping up a very volume tiff week of trading bob pisani is here to break down some of the volatility >> you're not going to see the dow move 3% almost in 25 minutes very often, but that's what happened i just want to highlight the s&p 500. everyone thought we would close at the lows, the february 28th lows, that didn't happen that was 2954 for the february 28th low we now close at 2972 we got as long as i think 2901 on the s&p 500, i think? really a remarkable move throughout the week. in terms of dow laggards, exxon mobil down 7%, i keep emphasizing 7.7 on jpmorgan chase down 7%, united technologies down 3% there were gainers, and we want to know that a lot of the consumers names did very well.

united health up 11% there was a little politics involved there proctor and gamble did well. home depot did well, other consumer oriented stocks like kimberly-clark, all doing well the market is now very susceptible to any kind of discussions about any kinds of stimulus program you saw what happened at the end of the day with rosengren making comments, bullard. the fed has done what was similar done in europe a number of years ago, saying they will do whatever it takes guys, back to you. meantime, let's go up up to bertha coombs for a look at the late-day comeback. >> a massive comeback here i was looking at some of the major big caps apple was the on one up for the week about a half hour acmicrosoft was off about 5% for the week,

facebook also trimming its losses substantial here. biotechs are definitely the outperformer, out for the fourth week in five, the sector up about 3.5% kiagen that got acquired by thermofisher and the bio plays. that's the wrong ticker there. the small and mid capping today, those sectors hitting a new loe for the year, and that was led by lows in regional banks, in the airlines and consumer stocks those small and mid-cap under pressure and underperforming once again >> bertha, thank you jill, if you owned one of those fang stocks that bertha showed, they've been the darling, sort of defensive growth, all mixed into one, and much done very well over the last few years, what do you do with them now?

how vulnerable are this? >> we've been equal weight tech, so we down graded a couple months ago it's been one of the best-performing sectors for much of this cycle. not only with the concerns around coronavirus and growth, but you will with the election and concerns around big tech and mo in the hospital his, there is risks, but it is one of the sectors with the cleanest balance sheets so, you know, the secular growth, internet stocks are the ones that tend to benefit when there's growth fears when growth slows down, so, you know, in the near term there's risks that theme could keep working, but overall, we would expect if there is a temporary headwind and profits growth does recover, that's when perhaps the rotation into value that we haven't seen, we would expect

could actually come to fruition. >> is the market looking at multiples now? >> for a name like apple that saw its multiple -- where they did not grow earnings, did not grow sales, did not grow units of the main products, which is the iphone so you're telling me that apple is trading at an all-time high multiple and all the uncertainty, throw out a 5g upgrade cycle in 2020. it's not happening, okay not in a meaningful manner i don't know why anyone would be paying 20 times for apple now, especially when the s&p is back to where it was, yet the stock is materially higher at those levels >> and the ten-year hit an all-time low today rick santelli has the latest for us rick >> 65 plus was the all-time low today. we're hovering at 77, down 14 on the day, down almost 40 on the week, and keep in mind, two-year

note yields closing at a five-year lows tens minus bunds, look at a one week the 30s at 130, it is down right now 24 basis points, and light tens down just a midge under 40 basis points on the week, a week the fed cut 50, and the dollar index, a 2% drop this week alone. sara >> all right rick santelli, thank you as far as stocks, i wanted to point out small caps as well, as we're tallies the weekly gains for a dow s&p nasdaq, the small caps are lower for the week. they have been underperforming, now down 15% from the record highs. >> too many financials, too cyclical, generally lower quality in terms of financial attributes, so i do think that was the case, and small caps have greater representation in those areas. >> the other thing to point out, the s&p ends for the week at a

slightly positive position -- sorry -- changed my point. year-to-date performance s&p is down 8%. you look at japan and europe, both down double digits. >> they're buying stocks. >> up 11% higher can we believe anything in the next quarter or two that comes out of china >> why does everyone say they're buying stocks. we've seen chinese stocks, i don't know, drop 30% why weren't they buying then >> listen, it's just easy window dressing their markets are like a fraction of the size of ours they can go in and buy stocks. >> is that not a sign of desperation? >> of course that's been the bear case on china forever. a lot of people think we have been a rolling credit crisis for the last 12 years or so. it started in the u.s., went to europe and ultimately the china thing will pop

ultimately they'll have to do whatever they can to keep those enterprises afloat. >> is that the general take, mike, that china is fixing it? >> i don't know about fixing it. obviously massages the rules and all the of that. i would say i'm not going to isolate that as crucial tell about how recoveries is going on over there but u.s. market down 8 pick and roll, because we had a big overshoot into february. the build up a lead and then have given back. >> a lot of people compare the chinese situation to the u.s china faced a ton of criticism for not being transparent and forthright now that the numbers are coming down, it's hard to draw anything in terms of what it means for the u.s., because the way they went about fixing it, with the quarantines, it's so hard to extrapolate. we don't do that here. >> i feel like we're so early in this process that i why the market can whip around the way it does

the market doesn't sit and wait to figure it out the market tries to fly around and find where somebody has, you know, a plausible conviction to buy the market at a certain level based on certain outcomes, but we're so early in figuring out what a critical mass is of a sample for the u.s. experience in this whole thing. honestly, there is one part of the probability spectrum that says we're all in deep over-panic mode. maybe it's not going to last that long or be that crazy i'm not saying that's the way it will be, but the market might start to be captivated for that. final word, what to do what is your advice when people ask you, what do i do with my portfolio? >> one of the things we've been say to investors, market timing is very hard you don't want to panic sell usually the best days in the market follow the worst days if you went back to the 1930s the s&p has up about 15,000% if you just missed the ten best

days, the return would have been around 90% so it's very hard to time these things looking for areas where we have high conviction or analysts have high conviction, or where there's these opportunities of things that are overly pricing the risks, that's where you want to -- and if recession risks continue to rise, that's when we have to reevaluate the market is pricing in more than 50% of a clans for recession. that's not our base case we do expect to slow down in this quarter, but by the end of the year we think profits will recover. >> jill carrie hall, dan nathan, your daughter is getting bored take her home. mike san tolli is ticking with us.

>> we know bottoming of a market is a process, it is not an event. we'll probably have more of this, but yeah, the magnitude of the ride in the last hour had to be impressive to everybody >> so before that, bob, were you getting closer to buys stocks, and has that changed your mind on things or not >> a couple percent doesn't do it for me. we're in a period of where we don't know far more than what we do know. on the big down days, i'm intelligently doing some adding, on the big up days, letting a little bit go.

i got e-mails from strategists on monday cutting my estimate from this to that i wrote back based on what? what i got back was, i don't know i'm not criticizing them we don't know what to say yet politics, et cetera, so whether it's a gilyard or a cigna, those kinds of names, i also want to own some cyclicals nobody could go out and buy anything, but they're good companies that are transforming that are business

in the wake of the amazon scare. utilities, reits, great companies, but pretty expensive prices, so what we didn't hear you say ear buying are energy stocks i'm nod really for the deep cyclicals. to get exiled, i need some capacity taken out

what about the banks >> yeah, i'm a better buyer than seller of the banks. they're not going to stake at 70 base points. they have strong balance sheets, so at these prices, i'm a better buyer. >> the treasury move, even though you don't expect it to last has been extraordinary. >> stunning. >> how does it move to 0.7 on the ten-year, change the way you look at stocks, sectors are or try to reach for yield >> my view is, as everything would agreed, when interest rates fall, p/e ratios go up to a point.

in fact, if you look at the intraday moves this week, you say a lot. and vice versa so the bond market is saying be careful. >> standard ways of trying to settle if you base it off the treasury yield, we're saying up. clearly not the case, but do you think the market has built in any kind of cushion? we're down 14% off a. >> yeah, i think you pointed that out well. we came in overbought. the fundamental is improving, but mixed, and part of this decline is just erasing some of that fomo patina that crept into

the market we need to get some visibility on how much are earnings going to be hit to really have any clue. bob doll, thanks so much for joining us. >> always. >> tonight doth miss the cnbc special report, let's get the latest on the coronavirus outbreak sue has that for us. >> instead i do. flow starting at 101,0101,765. even as new cases in china decline, hubei province today reporting no none infections

outside the capital of wuhan, but health experts occasion the virus could flare up again as restrictions are lifted. new york reporting 11 additional cases today. pennsylvania its first cases the u.s. death toll now stands at 14. the university of washington became the nation's first large college to close its classroom, saying it will cancel in-person classes and have students take classes and exams remotely instead. that's seattle and king county have reported at least 51 case health experts expect those numbers to rise as testing becomes more available labcorp. and quest diagnostics now saying they're starting to offer covid-19 tests so you are up to date, guys. sara, back to you. >> sue herera, thank you.

back to mike santoli looking at sentiment. >> olympicsly a key ingredient take a look at a couple measures, spirits have definitely sagged. this is the fear & greed index it's things like credit spreads, volumes, and volatility indexes, thing like that. it hit 6 today so this is a 0 to 100 kind of scale that this shuttles around. again, it can kind of stay there and chop around as the market tries to hammer out some kind of a bottom it did that in late 2018, also in the beginning there, but it's fair to say that people are scared enough in terms of how they're treating things in the market take a look at this bull/bear indicator, a little slower moving in terms of looking at things like cash levels among institution all investors. this is a weekly look, and it has gotten down from relatively

high levels, but still not quite in that extreme bear zone. if you want everything to line up, you probably want this frightful type of activity to go on a bit longer. >> mike, clearly fear has jumped, to your point about that it can stay at those levels for quite some time. the cbo itself never stayed at the peaks that long. >> the vix you mean? >> yes it shouldn't stay that long. it's a matter of how -- >> is your upshot it's not fearful enough >> i think it's a plausible enough place we're down far enough. we got oversold a week ago in historic fashion sure, we could be okay from here, but i don't think it's necessarily a complete fast pitch to say we've got it, this

is as far as it goes. >> and a note coming out that they wouldn't be surprised to see more panic before we start to see a bottom. >> the vick. if you're just joining us. it's been another wild week. here's a look back how we got here >> long-term value is not significantly impaired i say stay the course. >> this is a real shot to the economy. >> the fed needs to eels, but the important thing to understand is that the fed can't fix this problem federal reserve cutting by 50 basis points. >> we recognize a rate cause won't fix a broken supply chain, but we do believe that our action will provide a meaningful boost to have economy. >> to me it probably panicked a bit. i don't know what a lower rate

cut is really going to do. >> here they're doing exactly what they need to do, getting ahead of it, and boom, they did something aggressive. >> we have about $50 billion available to low-income countries and to emerging market economies. >> you can buy value stocks in the technology sector, and i think can you buy some very good companies. there are opportunities. >> i think they cut 50 at the next meeting, and i think that's going to happen. >> this is a blip. we've seen a lot of blips. >> economic problems wil probably be temporary and short-lived. the virus is not going to last forever. the human side, a lot of difficulties there, i get that, i understand that, but still we have a strong economic basis >> wow, what a weeks. >> a long week. >> i swear the rate cut feels like a month ago. >> it was tuesday. >> roller coaster week up and

down, ending up for the week as a whole. deepak, thanks for joining us. firstly, what have been telling clients? >> i think the message isn't too dissimilar this is panic. we don't know what we don't know, so usually the market is the past of free resistance. that's really what we are seeing having said that, i think there's a global coordinated effort to stabilize the market's reaction, and i think to a large extents, given what the experience has shown in china, this is some that can be contained, and given that scenario, we think the worst in

the u.s. might be the second quarter, and after that, things might start to look a bit better with that prognosis, the idea would be to stay calm, a big more cautious than usual, a bit elevated level of cars having said that, done shun any particular asset class, be it equities or bonds, and stay course be a little more nimble than usual. >> how do you think this is only a second quarter kind of phenomenon how do you put a time frame on it. >> it is an unknown, but my point earlier being that in china, let's say publicly it was disclosed in early january let's give -- it was going on for a couple months, and as of today, we started seeing the numbers coming. >> quarantining millions of people >> correct. >> we haven't even started testing in some states. >> i don't disagree with that. my point being that maybe the fact wererated number one in

terms of pandemic readiness. that should come into play our health care system should be nor stable the idea is we don't know earlier, what we don't know, but other cases have said if dealt aggressively and preemptively, this can be a contained phenomenon. >> to that point, we played it the machine taj there do you think wield get another 50-base points cut, which some people expect, and if we do, does that lead as to a big jump in equities >> i think the bond market has sort of force theed fed to act, and they will. i wouldn't be surprised when there's an -- you tend to have another cut. having said that, i think the

market is watching to hear more from the administration side you would like to see some sort of, you know, think of katrina 2005-2006, think of sandy 2012 there's a massive spending effort, a spending bill, in the magnitude of 50 to $100 billion. something of that nature, maybe tax credits, some sort of industry intervention, be it airlines, entertainment, so forth. so a more targeted approach. this needs to be dealt with in various forms. monetary policy is just one. assassins so much for joining us don't miss tonight a cnbc special report, "markets in turmoil. 7:00 p.m. eastern time. time to go back to sue for an update. >> hello again here's what's happening at this hour the house panel investigating

the 737 max crashes has put out a report that is sharply critical of both boeing and the faa. the preliminary findings find the design as marred by technical failures and calls the faa review process, quote, grossly insufficient woody allen's publisher has canceled the autobiography yesterday distinction the employees staged a walkout the u.s. government has gathered persuasive intelligence that the taliban does not intend to honor the promises it made in the recently signed deal with the united states. this according to nbc news taliban representatives also telling nbc they see the peace process as simply a way to get americans out of the country. and tokyo olympic organizer say the last of the sporting

venues for the summer games has not been completed the news comes at a time when the coronavirus outbreak has lazed questions whether the games will be postponed or even canceled so far they're going on. that is the news update. back to you, wilf. >> thank you, sue. still ahead, will the virus outbreak push the global economy to the brink of recession. conference rudd weighs in. take a look at the worst performing stocks on the dow today, which closed down 256 still lower, but a lot better hr fo t csen 900 it was at just anouberehelo the middle with you, ♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's the most open and secure public cloud for business. it can manage all your apps and data from anywhere. so it can help take on anything,

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technically, grandparents can't overdo it. it's impossible. well planned, well invested, well protected. voya. be confident to and through retirement. let's goat to eamon javers for the latest on the white house's response for the virus thus far. >> the president of the united states has arrived at cdc headquarters in atlanta, georgia, we should see those pictures popping up moment tear. that was a trip that on again/off again. they had canceled it, because there was fear that somebody at cdc had tested positive for coronavirus. later that turned out to be a negative test, the president said, so they did reschedule this visit we should see those pictures coming in shortly. this is a white house, wilfred,

openly considering economic measures to stem some of the damage from coronavirus that's expected to hit sectors across the economy in coming weeks and months larry kudlow, though, on cnbc earlier today, in talks to reporters in the briefing room, tried to sort of ring fence that, with the idea they're not going for anything like we have seen with stimulus packages in the past, like the tarp response or some of the responses we've seen here is what larry kudlow said. >> the story i'm trying to tell is a story of timely and targeted microforms of assistance, not gargantuan across the board throw money at the problem. >> reporter: so kudlow did say they are looking at aid to specific sectors he mentioned airlines as one sector, the airline ceos did not ask for a bailout. other things he mentioned was unemployment mitigation who

can't get to work and suffer, and also this idea that small businesses and small farmers might lose some product activity he said the white house is looking for ways to help them as well a host of optioning being considered here. i'm told none of those have been presented to the president yesterday for a final decision. >> clearly we've got an $8 billion package already. that's pretty small in the grand scheme of things. >> reporter: right. >> is there a political consensus to get there you go back to the financial crisis and think how hard it was to get tarp passed in the first pla pla place. >> reporter: i think there were a lot of definite at this time certains that just don't resonate in washington the fear of the deficit has largely gone away in this town i don't that would be a concern particularly with president trump pushing for a big spending package if that's where he ends up we don't know that's where he et

cetera going to go with this if he got behind it, i think republicans on the hill would fall in line i think democrats would support things that they felt were bipartis bipartisan, trying to get people back online. ultimately, though, i'm told he waited until that package was passed this morning before openly considering these other ideas, because they didn't want to get in the way of that one. you can imagine that everybody with an idea is pouching it aggressively >> i think the cruise lines are next to go to the white house on monday would that be in line for a potential targeted help? >> reporter: i think absolutely. i think we'll see the vice president meeting with cruise lines executives in florida tomorrow he'll get an earful from them as to what they might need. that's tricky, is that an industry that's a vital national priority for the united states that will be a decision that the

white house is going to have to make here. >> all right tomorrow thank you, eamon javers. the coronavirus has been impacting sports teams and leagues around the world italy, for instance is set to hold all of its sporting events? stadiums without fans until april 3rd. here's an image from last week's europa league soccer game in milan. wow, that's a ghost town >> wow, you nailed the delivery. europa league, very night. >> it's not that hard. >> that's true the trend has comes for the united states as well. this is after johns hopkins university banned fans from attending. the only people in the stands were sportswriter and school officials. even if the government permits these kind of gatherings, you can already see this as having a big psychological effect o

consumers and fans. >> and ten days from the division i march madness tournament those are bigger stakes, larger an renas. >> you can watch it on tv. >> and music fest tills later in the show and clearly business conferences have been hit significantly. of course we'll have to see whether the sports events gets more widespread. in europe it's still pretty targeted on northern italy as opposed to southern italy. those types of things can pick up pace quite quickly. 11 years, that's how long it's been. up next find out if there's any lars between the market meltdown then and now. coming up on "fast money", a p technician will tell you how to play a key sector of the market ♪ ♪ from smarter atms, to after hours video tellers ♪ ♪ comcast business is connecting thousands of banks to technology

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the president is at the cdc. senior azar and cdc -- there was some drama going into this the president wasn't going to go, because there was thought tore someone who tested positive for coronavirus working at the cdc. however, i good es that test came back negative, so the president was able to go and

meet with the folks down there today about the coronavirus and the u.s.'s response. >> there was a lot of back-and-forth, clearly making the trip after all we'll see if there's any change in policy that will come out of this the other thing that stands out, alex azar is still there there were questions earlier about whether his tenure related to being on this task force would come to an end clearly that's not the case. we're expecting to hear from vice president espn, who is in charge to the administration's response at 5:00 p.m. eastern. we're expecting a briefing from him. hopefully he'll be joined by dr. fauci, who always gives the latest on the virus, the trajectory, but overall, you know, there are criticisms out there from about the handling of this, but the president clearly making a show here that they are

on top of it, working around the clock on trying to get the test kits out. we're going to continue to monitor that, or pause for a moment if we can pick up what he's saying there. >> the fact that it was associated with a seafood market, there was a -- from animals to people. as soon as the chinese announced it was a novel coronavirus, and the chinese, to their credit, made that sequence information available, our coronavirus experts here designed a test so we could detect the virus, even though at that time there were no cases in the u.s. and we had no samples in the virus, because we had no clinical materials

we quickly went from designing the test -- we are going to keep monitoring this for you. if the president starts speaking, we'll bring you any headlines. mike as the final segment of the dashboard. let's look at a longer-term stretch. we're at significant an versies. yesterday was the 20th anniversary where the nasdaq first hit 5,000. just a few weeks away we are 850, just about doubled over that 20-years span it looked like an impressive move, but it is starting this decade or the prior decade, but the total annual gain is less than 3%. the lesson here is, if you buy a megamania, you're probably going to have to wait a while to break even

obviously today's nasdaq is different from the one back then more interesting arguably, today is the 11th anniversary of the intraday low of the s&p 500. monday the 9th is the closing low. this was the day that the intraday low was 666 this obviously has quadrupled roughly at the highs what's fascinating the ten-year bottomed at 0.66 obviously it's coincidence -- >> no, it's real. >> only you would -- >> it's spooky. >> we've been talking about it all day. remember ge shares bottomed at 666 as well? >> what's that number? >> et way, mike. talking about these comparisons to massive selloffs, whether it's the s&p and the last financial crisis or the nasdaq, what are the stand outsimilarities? >> this is the one right here in 2011

look how small it looks right now, by the way. it's fats nailing the differences between the meltdown that got into that, the pervasive since since it was the largest recession since the 1930s, and the banks system was teetering. obviously now this is more of a garden variety end of cycle gut check? maybe it will be a technical recession, maybe not the market has to hash that out, but if you wanted a quick-and-dirty trend line, nothing has too much been disturbed by this pullback in terms of the longer-term dynamic. coming up kevin rudd here, what he says the coronavirus could mean for the global economy. that's next. ♪ ♪

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the coronvirus outbreak threatening a major hit to the global economy new data from s&p global ratings projects the economic fallout for the asia-pacific region alone could be as much as $211 billion. lets bring in kevin rudd, formerly prime minister of australia. good to see you. how do you tally up the economic

damage what are your expectations for global economy. >> it's like concentric circle we start in wuhan, to near east asia it's a time lag factor the impact on cht chinese economy january and february will be nothing short of catastrophic in terms of real growth i wouldn't be surprised if the first quarter numbers are in negative territory but the truth is they're already on the partial recovery curve. the lag factor lie was surrounding economies. and the biggest lag factor will lie here i think we'll have the staged economic reactions like we had a staged transmission of the virus, one proceeding from the other. the hit on the global economy you have seen the projections as much as i have i'd be surprised if the chinese get out of the 2020 calendar year in the absence of a real growth rate of three or four which means stimulus of 2% plus, which is what i think the government is working on

beijing. >> clearly china may well we hope be on the recovery path but a generation of chinese people have never encountered a contracture of gdp for the quarter. what could be the effect could it shake the economy into a lasting recession or do you think in will be a definitely a quick bounceback. >> i think it's going to be a very uneven bounceback they are not doing a recommend indication of 09 or 08. you are seeing a burcham of meds to take the tax and regulatory burden off firms where the hit is huge. and then a third aspect of the stimulus not on as it were the supply side but on the demand side, which will be through a large injection of further infrastructure investment but in the new infrastructure projects not the old ones of the past overall pattern i think will be

uneven the school of the country which i think is the essence of your question has been hit. because smes in china have known this movement over 20 years now. short of the financial crisis they have not seen that. i want a big hit. >> the g 7 huddled earlier this week and came out said we'll use available toonls generic but a statement of support did they do what was necessary and needed or possible at the time just by the gesture. >> i was prime minister during the financial crisis and so markets are critical. but markets forming assessment about lets call it the flaw which governments are prepared to construct underneath them is equally critical what are the two flaws one is public health that's why the president of the united states is at atlanta at the moment looking at the cdc and the second is on the preparedness to act in terms of fiscal monetary policy stimulus.

i don't think the g 7 so far is sufficient for that. what i would strongly recommend is they convene a virtual g20 finance and health ministers meeting so markets conclude there is a common strategy across the countries rather than every man for himself, which i fear is currently the view. >> we haven't seen much in the way of leadership huddling together kevin you said as a leader how you pay attention to the markets, the line we get from the administration is buy the dip in stocks. here is larry kudlow earlier on squawk on the street". >> i think when you have these corrections in the market -- i don't know what we're down the latest quote is, got down to 13% correction from the peak, i'm not sure where it is exactly now, yes i would say as i will repeat my view, carl, long-term investors should think seriously about buying these dips. that's my view >> did you ever as prime minister in the financial crisis tell people to buy stocks?

is that -- >> well i think. >> a strategy. >> how do we put this in polite diplomatic language that's add odd for a senior official to do. we would never do that markets make decisions our job in the public policy space is providing certainty on public health responses where there have been questions mark in this country about adequacy and testing kits and et cetera and then certainty in terms of lets call it all the tools on the fiscal and monetary tool box to act if we end one a growth gap of 1, 2 or 4%. telling people to buy doesn't strike me as the proper responsibility for a public official. >> kevin, wanted to ask you as well about oil and gas, clearly australia a big part of their economy exporting lng. what do you make of the selloff we've seen and the prices where we are on 41 on wti, still some way to go from 2016 lows and how

badly could it hit countries like australia. >> i think it's a significant hit. as we know china represents a huge slab of global demand, lng in particular and coal and other fossil fuels and you've seen the chinese invoke force ma jur in terms of terms of a number of contracts when markets look at that they press the panic button, hence the equities are down. but i would say as i observe these trends, two weeks ago we had irrational market exuberance in this place. today irrational market panic. mixed data lies up the middle of that including in the energy sector which will recover as the chinese stimulus kicks in the second half of the year. >> kevin rudd as always a pleasure to see you thank you. >> we're getting breaking news out of auhston out of south by southwest. >> the mayor of austin

cancelling south by southwest, the fest gatherings music, film and internet component people talking about the future of technology this is -- this had -- there were questions about why or whether this was going to be cancelled and why it hadn't been cancelled yet. it starts a week from yesterday. starts this coming thursday, friday, in austin. a a thousand people signed a change.org petition saying south by southwest should be cancelled amid the coronvirus outbreak over 400,000 people attended south by southwest and the related festivals in austin last year this is an event gathering a lot of people, now not happening starting next week back to you. >> thank you so much for that, julia. mike, all through the week we discussed whether we peaked in terms of fear and hit to the economy. >> sure. >> this type of thing shows we are not there yet. >> we are not there yet in terms of response. i think it will be interesting to see over the next week and more how the market is sort of

stress tested for resilience everybody knows there is going to be more infections more announcements business constriction to see how the market accepts it is more interesting than the zbleend the other question is the loss of kmook activity can that be made up quickly with something like this? you have to wait. >> lots plor questions to get answers to the special tonight has many that does it for "closing bell." "fast money" begins right now. that incredible lengthy surge wrapping up another record breaking wall street week for a lot of reasons hi, everybody. welcome i'm brian sullivan a and your trade remembers tim seymour, brian kelly, karen finerman and steve grasso high pressure let's get right to it stocks staging what can only be described as monster come bang the dow up 600 points in the final 52 minutes of trading. the big move, likely fueled in part by thfe