because of the government's interference and this is a chance to maybe set all of it right. let me know your thoughts. that does it for the exchange today. >> we will see you over here in just a moment. welcome, everybody i'm tyler mathisen and we start, of course, with the major sell-off that you see right there, down on the dow, 1,200 points, approaching session lows, wiping out all of yesterday's epic rally, heading right back towards the 52-week lows we hit on monday, 23,800, the number this as coronavirus fears grip wall street. moments ago, the world health organization declared the virus a global pandemic as the number of cases around the globe grows. right here in the u.s., we have more than a thousand cases right now and the cdc said as of yesterday, it has only tested about 5,000 people, just 5,000 so you can expect those numbers, that thousand case number to rise from there. and it is all eyes on the white house. the administration says they are working on a comprehensive stimulus package and top wall

street ceos are heading there this afternoon to discuss solutions in the next hours, as investors await some relief. kelly? >> all right, tyler, thank you very much. we are all over this major moment for the markets today meg terrell has all the latest numbers on the coronavirus, which is now being called a pandemic bob pisani is watching another thousand-plus point drop for the dow. rick santelli is out in chicago watching the bond markets. eamon javers is at the white house where a lack of details on the stimulus plan is adding to this sell-off. we begin with bob at the new york stock exchange. robert >> in the absence of nif positive news out there, the markets keep drifting lower. here's the dow we had a little mini rally going here, not dramatic, but a mini rally. and around 12:30 right here, we had the word from w.h.o declaring it a pandemic here i think that took a little bit of steam out of the market as you can see, we're sitting near the lows for the day. what's moving? three things i have been emphasizing the moved the markets in the last several days all supply shock and there's no

talk about russia and saudi arabia making up no good news there, today coronavirus headlines that are out there, we're hearing about shortages of testing kits, things like there. we have anything on the size, on the timing, on the content we have some hope, but not a lot of progress. in the absence of any good news, the markets, as you see, keep drifting lower here. sectors here, let's call it the global 4% takedown this happens all the time. it's not consumer staples over industrials, it's not anything look, everything, 4% to the downside it doesn't matter whether you're defensive, cyclical, it doesn't matter, it's the global takedown of the market multiple, because we can't figure out what the earnings situation is going to look like. two sectors we want to highlight, these are shale plays. hess, eog, you can see the whole market thing here, 3, 4, 5, 6%, pretty indiscriminate. doesn't matter what you're looking. i keep getting comments about the banks being cheap.

they are cheap on a relative basis, a historical basis. you might be dealing with four to six times forward earnings. regents, 6 1/2 times forward earnings that's cheap, but if you don't know what the earnings are, then cheap doesn't mean anything at this point and that's why nobody is paying any attention to things like forward earnings estimates or multiples right now. we need to get an "e" in the p\e, and until that, we get all of this craziness and all of this huge intraday volatility. >> robert, thank you very much bond yields are lower at this hour rick santelli is tracking the action at the cme. hi, rick >> hi, tyler but they haven't been lower on all maturities all session. and this is a fascinating development. three-day charts, because that's week to date now, look at the three-day chart of a two-year note right side, well, it never really got quite in positive territory today. right now, it's down 9 basis points but let's go to the ten-year it's down four basis points and it has flirted with change

actually, it was up a basis points 30-year bonds were up a couple of basis points. they're also down four so we're getting steepening with all rates, of course, being lower. ty vix, we normally talk about the vix with stocks. ty vix hit an area on monday that was around 15 we haven't been anywhere near there since the end of december 2008 today, briefly, it was under 10. now it's hovering around 11. and finally, the dollar index. you know, its lows monday were 9456 like treasuries, we are finally building a base. and the dollar index and some long maturities close higher on the session, these are the ways you start to consolidate, especially considering ten-yea note yields on monday's intraday were 31. here we stand more than double that amount. kelly, back to you >> all right, rick, thank you. rick santelli. coronavirus now officially declared a pandemic as we see a big spike in the number of coronavirus cases in the u.s. and some tough comments from the

head of the nih. those are among the headlines that meg terrell is following today. >> the world health organization making that declaration of a pandemic today, while noting the number of cases of covid-19 outside china has increased 13-fold in the past two weeks. the number of affected countries has tripled. but it also said it's not concerned just by the level of spread and the disease's severity, but by, quote, alarming levels of inaction it's seeing in response this as leaders of the u.s.' response testified this morning to congress and the nih's dr. anthony fauci being asked to put the risk to americans into context against other known pandemics, including the flu >> if you count all the cases of minimally symptomatic or asymptomatic infection, that probably brings the mortality rate down to somewhere around 1%, which means it is 10 times more lethal than the seasonal flu. >> and those leaders, particularly cdc director dr. robert redfield also being questioned on the lack of testing capacity for so long in

the united states. and even as it's ramped up, hospital leaders are still saying there's not enough capacity and turnaround time is too slow and to pile on, there are also now concerns about the supply to have components needed to process the test, guys so just a compounding of fears and problems >> although i did hear you mention that they're trying to kind of add manufacturing capacity, even some employees. it's a very small offset, but at least there's one area that is looking for people to help kind of -- >> that's right, the coronavirus response these companies are hiring >> exactly, they need to thanks very much, meg. meg terrell. the white house, in the meantime, proposing stimulus to boost the economy, but we are still awaiting details about what exactly that will look like eamon javers has the latest at the white house for us eamon? >> reporter: kelly, we have just learned that the president of the united states has declared a nationwide disaster declaration is under consideration at the twho white house. i am told by a white house official that this idea was discussed with senate

republicans in the congressional lunch yesterday with the president, it is actively under consideration now. the appeal for this idea, kelly, is that ultimately, it would free up billions, if not tens of billions of dollars of federal aid for areas that have been hard hit by this virus it would put fema fully in the fight here against the coronavirus. and ultimately, there are a lot of fema tasks that you think of that are covered by the federal government that wouldn't apply here, like debris removal and that sort of thing that you associate with fema. but there is a fema federal disaster unemployment aid package that could be unlocked here as a result of a national disaster declaration that's one thing that could come in handy for those people whose jobs are going to be impacted by this, won't be able to get to work, won't be able to get tips and cash wages and that sort of thing. that is an idea under consideration. no word on whether and when the president will make the decision on a national disaster declaration, but we will see the president shortly, i believe that cameras will be allowed in here to this presidential

meeting with wall street ceos at the top of 3:00 p.m. east coast time the president is meeting with the top wall street executives here, in order to get their ideas on how they can help small businesses that have been impacted by this and also the president wants to get their sense of recent market movements and their advice on sort of where things might be going. so all of this, we might see, within the next hour or so here at the white house, kelly. so stay tuned for that >> eamon, we appreciate it eamon javers at the white house. now back to this steep sell-off. stocks are tanking today with no move from the white house. earlier on squawk on the sfro"se stree street", david kostin explains why he thinks this market is down >> that's a pressure on the net interest margin for banks. lower earnings on the bank sector you have negative -- the consumer is also pulling back. we have a number of technology companies, which have withdrawn

or guided down negative. negative companies, negative guidance from some of the semiconductor companies, some of the hardware companies, withdrawing guidance so those are the drivers of why we have overall profits coming down >> lee munson is with portfolio asset management he was on our show nearly two weeks ago saying it's the most concerned he's been about this market since '08 kathy entwhistle is with us as well we're at session lows, down 1488 points for the dow why do you think these 5% sell-offs continue what does the market want to see here how do we work through this period >> absolutely. i think there's a number of reasons. it's the uncertainty around the coronavirus and when and how are we going to contain it that's number one. and i don't think we're going to see any sort of smoothing out here until that question is answered two, it would be, what is the financial impact to the corporations who have to shut down their businesses? and what does that do to the

economy? and what does that mean to earnings going forward and we have to re-evaluate that. three, the economic stimulus, the package we might see come out of washington, d.c., that's critical and finally, at some point, we'll see the valuations look very attractive. not yet, but at some point we'll see that, and that's when we'll see people going back in and investing in the market again. >> lee, it all sounds very reasonable and yet we have a backdrop where you yourself a couple of weeks ago said you were getting pretty freaked out. so has the market met where you emotionally feel, or is it getting worse? >> well, i think monday was where -- that's where all the technicians -- people look at charts and all that kind of stuff. that's where i spend my in the middle of the nighttime on twitter with i think sometimes the market gives you the environment. it doesn't give you the nominal price that you're looking for. so here's where i think what you can do i think you can rebalance the portfolio, if you have a balanced portfolio that will cause you to sell some bonds, buy some stocks i'm a net seller this week of

ten-year treasuries. i'm a net seller of my bonds and i know all the bears are going to freak out when they hear that, but i think you have to have some dry powder. we did let go of our gold position, because we're getting ready to buy now, here's the thing. i've said 2750 is the level i'm looking to buy we might buy a little bit there. but the things i want to buy right here, because i think you can, and i think we don't know and obviously, everybody knows that this is going to impact earnings and we are so sure of ourself that this is going to go lower. i've been adding to some small value, which people think is crazy. i've being adding some emerging markets, because they've retested those december, christmas eve, 2018 lows but i think as far as overweighting your portfolio and getting in there and making a call, i think you need to wait a little bit and see if we can hold this level. if it holds this level, great. but if it breaks, it's going much lower we could see 2650, we could see 2,600. so for now, out of the things that are just killed on lighter volume, right --

>> 2650 doesn't sound all that much lower when you're at 2742 >> i know! >> 2,000 sounds lower. i'll grant you that. kathy, lee says people today, he's a little crazy going into emerging markets, going into small cap value. is he crazy or not >> i don't think so. i think those truare opportunit at least for the long run. and right now, we're looking, re-evaluate your portfolio, upgrade quality. everything's down. it's a great time to re-evaluate and up grade the portfolio >> i want you to come back to that point really, you see no reason for this cascade or trickle or whatever right now, it's a cascade, not a trickle of equity prices to cease until we get some clarity on a peaking of coronavirus and we get some clarity on corporate earnings and we're not going to have that until april. >> right, i don't disagree with you. but i also think, if you don't get ahead of it, you're not going to be able to be in the upswing when the market turns around and we know, we've seen it up and down very quickly.

so from that perspective, when i would say is, we want to start to thoughtfully putting cash back into the market i have clients calling me up and saying, let me know when you think it's the right time to getting back into the market >> time to get out of gold, lee, you said >> yes, in fact, i'm ready to say this so everybody can listen to it and judge me later we sold gold last thursday when it was about 1650. and i thought, i'm early to this gold has failed to rally why isn't gold at 1,800 right now? if there was panic, gold would be a hundred points higher, a hundred bucks an ounce higher and copper would be 10 to 15% lower than it is that's why this is not as bad as we had in '08. and look at the vix. look at the amount of selling. and just, come on, guys, look at what treasuries did on monday. that has nothing to do with inflation or anything else, that is just a directional algorithmic, everyone out there trying to get on that trend. i think you can take off your gold

i know, you know, cramer says you can still buy gold i think you sell it now and use that as cash to get ready to buy. but i think that if you're underweight in stock, don't be but if you're waiting to get overweight in stock, just give it another few weeks and see if you can get paid because until clients stop saying, i want to send you money, and they start saying, i don't want to send you anymore money, we haven't bottomed out yet. people are still willing to buy. >> kpaathy, i had the exact same reaction it's great that customers trust you so much. >> so our clients are definitely long-term view clients so this is money they're not going to need in the next year or two years or three years or five years what is that going to look like in five years? the market -- i'm going to bet on the market being higher in five years than it is today. so i think if we -- this is the time as an adviser that we have the opportunity to make a critical impact in our client's futures and in their financial futures. so we have to really start thinking outside of the box, think strategically, and take a

little bit of those steps in order to put them in the right position >> kathy, thank you very much. >> thank you >> and lee munson, we appreciate it we're just a hair's breadth away from being down 20% from the recent highs in this market. shares of boeing not helping, down 14%, by far the biggest drag on the dow. boeing says it will draw on a $13 billion loan adding insult to injury, now coronavirus is adding to the company's existing problem, so boeing says it will freeze hiring and limit travel. cnbc.com's leslie josephs joins us now, leslie, with more on -- this is really coming to a head for boeing today >> we're coming up on the one-year anniversary of when the u.s. grounded the 737 max. some countries had done it before yesterday was the anniversary of the second crash, and this has just been a whirlwind for boeing in the past 12 months. and for this to happen, they were trying to dig out of it, they had a new ceo of the start of the year, and then you have this issue with their customers, the airlines are dealing with

the forefront of the coronavirus crisis >> and the shares are now below 82 $200, they're down 40% in the last two weeks what had been a bad problem more them because of the max problems is now becoming, i guess, a broad-based demand problem, you know, an industry concern. you know, it's interesting that what they announced today didn't make the shareholders feel better, it made them feel worse. >> i mean, boeing now with the new ceo is trying to get the bad news out as fast as possible, because there were some issues with that before with the 737 max. but it's not good news the tone of the note that they sent to employees was that this was a global issue this was an economic crisis. and it's not just a boeing issue. this is an issue for airlines. this is an issue for boeing's top competitor, airbus are there going to be orders this year when you have traffic down and travelers are just staying away from airplanes. >> and they don't know how quickly it's going dom back, number one number two, the airline stocks are way down

so how confident they're going to feel is really in question, it would seem to me. they don't have real clarity >> there's no comparison to this and some of the ceos -- you know, the ceo of southwest, derek kelly says it has a 9/11-type field. robin hayes told us yesterday that it could be worse than that but 9/11 happened. we closed our air space, and then we slowly recovered this doesn't seem to have an end in sight and i think that's -- the uncertainty there is what's making the investors very nervous and making the airlines nervous that they can't give a proper forecast. that's why they've withdrawn guidance >> and we've spoke to analysts who said that the 9/11 event took about eleven months for it to normalize in this case, we know for a fact that this is going to be a rolling issue. what do you think the company could say that would make investors feel at least a sense of clarity that it can't get any worse from here? or is there anything that they can say? >> i don't think they know that

it can get any worse we're starting to see demand drop down in the united states these rock bottom fares, double digits in some cases and sure, they had some millennials taking them up on the deal, a yolo method. but business travelers are staying away their companies won't let them travel they don't know. they are kind of playing it straight and telling investors that, which is probably better than them saying everything is fine and then kind of surprising but coronavirus is an airline story. it's a travel story. so that's -- i think that's why they're feeling it maybe more than the other sectors >> i'm looking at the wires right now. delta stopping seasonal service between new york and copenhagen, new york and milan, new york and venice cutting back service between detroit and rome april 1 to may 5115th

>> we're coming up on summer vacation >> this is summer seasonal service. a lot of this is seasonal. it's not your regular flight >> and these are your big planes that can make a lot of money >> there's a revenue -- there's going to be a serious revenue hit. >> and they're expecting some defaults this year there are some every year, but it could get worse >> i guess for the airlines, too, they're thinking to themselves, we can at least reduce our fixed cost by removing some of these routes altogether for boeing win ju, i just wondee are all of these jets going to become parked. so even throughout the 737 max issue, they were saying, we're going to continue production, continue production. now you've got a broad-based demand it. >> they stopped production of the 737 max back in january and they had plans for that. the question is, when are they going to restart and one of their biggest suppliers, spirit, has already laid off close to 3,000 people because of the whole slowdown. it's not clear what that is going to look like

dave calhoun, the boeing ceo expects to start before we have approval >> when do you see layoffs >> boeing has told us that as of now, no. but things are changing rapidly. and that's what makes this crisis so difficult, is that every day, the feel of the day if you walk around the subway in new york city and see fewer people, the vibe of the day changes so quickly it's a little bit hard to tell but u.s. airlines are a little bit better positioned than some of the international carriers that we might see go or you should further strain and their balance sheets aren't what they were around 9/11 and fewer competitors, too >> we appreciate it. leslie josephs covering boeing. >> again this afternoon, a nearly 1,400-point drop in the dow. we have hit a 20% decline from the recent highs what we colloquially call a bear market we'll have a lot more on that. but speaking of layoffs, there you can see the 5.5% drop for the dow, for the blue chips today.

as we said, wall street seems to be pricing in a major economic shock now as coronavirus could bring u.s. growth to a halt. our next guest says major job cuts are coming and will occur in four waves. let's bring in andy challenger, senior vice president with challenger gray and christmas, a global outplacement and career transitioning firm you know, andy it's a little difficult to talk about this you don't want to spook people and have them think, geez, layoffs are coming, it's going to be worse than i thought, i better start hunkering down. assist delicate time is that a reason why the layoffs haven't so far been worse? >> i think that's a really important point. two weeks ago, we were firmly in one of the tightest labor markets we've seen in 50 years i don't think we're going to see panicked layoffs but if the coronavirus persists to affect demand, we will see layoffs eventually first wave we'll probably see is companies that are affected by this supply side shot, d'supply chains into karine

the first corona-related layoffs that we've tracked so far, from a smaller toy company that wasn't able to get its parts >> so let's talk about those four waves that you see. companies affected by the supply chain, you know, cruise ships, hotels, the end person service business explain how you explain this to cascade. >> like you mentioned, travel-related industries. airlines and hotels have already announced hiring freezes and we anticipate, you know, potential layoffs from cruise liners that are seeing a real downturn in demand next wave would be businesses that have employees that cannot work from home, that rely on foot traffic, so restaurants, entertainment venues, those areas will, if the virus persists, if there are quarantines, eventually have to conduct layoffs. and then kind of the fourth wave

is the overall economy and if it moves into a recession then you start to see a number of different sectors affected by this, as a final fourth wave of the layoffs. >> do you have a peak-to-trough estimate of how many cuts we're talking about? >> hard to estimate. it's just so -- it's just so much uncertainty here. >> there is -- and i don't want to put you on the spot so let me turn to what could be a silver lining. there are industries like health care, you think, are going to add jobs because of this and in some cases, you say, look, they had 57,000 new jobs in january they're going to need supply manufacturers, hand sanitizer, bleach all the supplies where you're seeing those increased demand. hospitals, that kind of thing. there could be some offset with some hiring there, right >> sure. you're going to see hiring in certain industries that need a lot of extra workers during this potential crisis you saw in china and in italy

asking retired medical professionals to come back in. clearly, there could potentially be a demand there. in any of those supply-related organizations, staple foods, purell, those types of products are going to be in really high demand over the next weeks and months >> might you also see sort of temporary hiring in fields like sanitation, cleaning, those kinds of areas where i would think municipalities and restaurants, malls and so forth would want more and more people in there scrubbing, cleaning, sweeping, and washing? >> certainly businesses, people that own buildings are looking for more regular deeper cleans of their facilities and that's going to mean extra

hires that are brought on. temporary hiring is what we're going to see there as opposed to full-time roles. because even those firms are feeling a lot of uncertainty, if they added a lot of extra people right in this moment and in the coronavirus doesn't turn out to be what we're anticipating right now, they would have to let them go quickly >> all right andy, thanks >> thanks for having me. >> andy challenger >> we have a news alert on the nba. let's go to eric chemi for the details. >> remember, a few minutes ago, we were talking about how san francisco didn't want any gatherings of more than a thousand people. so the golden state wroarriors, tomorrow night their home team will be played without fans in san francisco. the first nba game to be played without fans then they go on a road trip. they'll have a few days to figure out a plan. and all other games and concerts and other events that will be happening at the chase center, they are either going to be moved, postponed or canceled things like a minor league santa

cruz warriors game, a post malone concert remember, the chase center, brand-new multi-billion dollar facility it grosses about $3.5 million per game it's the highest grossing nba arena, because it is brand-new and very expensive so no fans tomorrow. >> to be clear here, the warriors are reacting to state and local stipulations they're not doing it at the direction of the nba >> correct this is because the city of san francisco doesn't want gatherings of more than a thousand people. so they're responding to that. meanwhile, the nba is actively currently working on a plan for its teams across the country to figure out what to do as different cities start to impose these restrictions will they move games to other elections, like the road team or at a neutral site because of situations like we're going to see tomorrow night the warriors playing without fans tomorrow. >> i wonder, eric, if you mentioned, if it were baseball games, for instance, i think if they don't play, the players don't get paid would the nba ever consider

cancels games and players not make money in other words, would that lessen the economic burden to some extent? >> i saw a claus where i think it's like nba players, they would lose a percent, 1% of their salary if they didn't play a game so there are clauses for some clawbacks if games don't get played but i think everyone in the industry is trying to avoid games to be canceled so that's why you're seeing tomorrow's game, at least they're playing it, because they still get a lot of money for those tv rights. >> all right eric, we appreciate it let's check on the markets right now. it's not a pretty picture. the dow just down more than 1,400 points we're at session lows here, pretty much. it's a fresh 52-week low, and the biggest, biggest headline from this hour, from this whole day is that with these declines, the dow was briefly down more than 20% from its record high. the fastest 20% drawdown we've ever seen. and we're in that territory right now. of course, that comes on the back of yesterday's thousand-point game. still a 5.5% drop for the dow,

5% for the s&p, and about that amount for the nasdaq today. biggest percent losers on the dow, first is boeing, worth more than 200 points of this loss it's down 15% after its orders were negative last month visa and mcdonald's, both falling nearly 5% as coronavirus threatens consumer spending. >> and it was really almost, as you pointed out, this was the fastest drawdown in history from peak to this 20% decline it was basically one month ago, the 12th of february, that the dow closed or hit an intraday high of 29568. for more on how mcdonalds and the restaurant industry is dealing with coronavirus, we gave you a little appetizer there, didn't we, kate rogers? >> love that as you can see, the restaurant stocks are selling off with casual dining chains really seeing the biggest declines today, but we'll start with names like mcdonald's, starbucks, chipotle, and wendy's, they're all down over 5% pizza chains like papa john's and domino's are down around 2%,

seemingly because those companies rely more on delivery. but names like olive garden, bloomin brands, those are all down double digits beyond foot traffic challenges moving forward, these brands are responding to the coronavirus outbreak with increased cleaning and sanitizing measures and updates to some of their paid sick leave policies. mcdonald's yesterday saying it will pay workers at its company-owned locations that have to quarantine for 14 days darden restaurants, the parent of olive arden, says it is extending sick pay to workers that did not already qualify, and catastrophe pay for workers who have been diagnosed or have had known contact with those that have been diagnosed whether it's at home or in stores would be available and those showing symptoms without known contact as well as those that the cdc has warned to take extra precautions would be eligible for that catastrophe pay. now, starbucks along with chipotle and shake shack have long had paid sick time for

their workers. but an interesting thing we don't talk about enough in the restaurant world is franchising. a lot of these franchisees are able to set their own independent policies, which is why you hear mcdonald's saying, we'll do this at our company-owned locations. labor activists say that the parent company should step in and say, this should be done across the board >> i didn't know about catastrophe pay. is that a term that has been in existence for something like before coronavirus or is this the first time we're hearing about it >> it's the first time i've heard it about it in regards to the virus, but it's basically pay for scheduled hours that you would have worked had this not happened it's my understanding that this existed, not new thing, but something they're putting in place in response to >> it's great. it means the private sector is moving before the federal government is kind of getting around to it >> they're being very proactive, for sure >> should hopefully ache ttake e edge off >> the oil market is closing for

the day, none to soon, rahel solomon at the cnbc commodities desk >> so oil prices, much like the broader market, under crisis due to coronavirus concerns. also a rising u.s. stockpiles more than three times what analysts had expected for the week ended march 6th prices had been positive earlier in the session that was on hopes that we might see less output as north american producers grapple with low crude prices and cut back on spending but those gains did not hold brent settling down almost 3.5%. wti, closer to 3.67% also on pace for its worst week since december of 2008, of course, during the financial crisis >> rahel, thank you very much. we appreciate it the dramatic collapse of crude is crushing energy stocks. shares to have companies like occidental, marathon, devon, diamondback, apache, all down more than 75% from their 52-week highs. look at those numbers.

and that drop is also weighing on regional banks. houston-based prosperity bank share s is down more than 30% from its highs and on pace for its worst months ever. what a better time to give us perspective on how the energy slide is impacting its business is the chairman ceo aof prosperity bank chairs i really appreciate you coming here on what i know is an unsettling day amidst an unsettling month for your company and your stock, and most especially for your customers. which has been the more sort of damaging part of this equation has it been the slide in crude prices, or for you the slide in interest rates >> well, we got a double whammy on monday. >> you sure did. >> on monday, our stock was down over 22% in one day. and we thought it would probably start because of the coronavirus, but again, we got

hit when skraib and russia decided to have a price war. it knocked our price down a lot. this is nothing new to me. i've seen this movie before. same thing in 2018, 2017 same scenario. oil prices dropped below $30 a barrel and everybody thought that texas was going to fall off into the gulf of mexico >> well, we're sure that's not going to happen. we know that texas will be there. >> that's right. >> i have heard anecdotally about some banks, mostly regional banks, but also big ones, but regional banks specifically developing programs for small business lending to businesses that have been hard hit in your case, the crude oil collapse or business being affected by coronavirus. do you have those programs are you thinking about them? what are you doing to help

businesses that may have been hurt by corona or the oil price slide? >> we currently don't have a special program in place, but again, we're a community bank. our customers, we know all of our customers. we usually know all of our customers by name. we've banked them for probably, some of them, 25 and 30 years. so if they're going to have an issue, we're going to take care of them and be there right with them >> so it's not like you have a special thing, but it's what you do day to day. what are they saying to you? what are your customers saying when you come in let me ask you this. texas has not been a hot spot. seattle has been i hear stories about regional bank companies close locations what are customers saying? are you considering shutting down your banking locations and relying on atms and drive-through? >> really up until the last couple of days and maybe even

today, more so, the coronavirus was really something more feared, i think, on the east coast and west coast our economy in texas has been extremely growth a lot of population growth, very low unemployment our consumers have led the economy. they've had more money than they've ever had so they've been leading this the coronavirus in the last couple of days, i don't want to say panic and fear, but what you see on tv every day is starting to affect people we're starting to see where you saw southwest by southwest in austin, they didn't have their deal the houston rodeo is going on right now. they're considering maybe cutting it short but up until this point, our economy has been really extremely good and people have not been as panicking or fearful as they have in the rest of parts of the country we don't have a lot of people that have it or families that have had it. and we don't want to be insensitive to it. but i think what you see on the

media just really perpetuates some of this going on. i mean, if we have 30 to 60,000 people that die of flu every year and if you came on tv and said there's a hundred people dead today and there will be 100 people dead tomorrow, you can see how this carries on. but i think that everybody in texas especially, and i think the united states, will get through this coffee been through this kind of stuff. we've been through y2k, through sars, through the swine flu. maybe it wasn't as polarized as this is. but this is something that's going to happen. it's going to go through i don't know if it's three months, six months or a year, but it's something we will all -- we'll all live through, we'll all make it. and i think this is lareally ju an opportunity for people to buy stocks right now i look at our stock, there's more people really in our company that are buying our stock than i've ever seen since i've started with the company. >> well, that's a good sign both

of faith in your region and how you run your business. i take your point. we new yorkers really aren't known for our calm and reserve we do tend to blow pretty hot and cold at all times, and of course, an often lot of the national media are based in and around the new york city area. so there is that kind of a megaphone effect in new york but the facts are the facts here when the head of the national institute of infectious disease says this is going to be ten times probably more lethal than influenza, you do have to sit up and pay staengs to attention to. i'll say something else. i was speaking to a dear friend who works for a health care company that shall remain nameless and he said, if we were reporting every day, the deaths in new york, say, or in a major metro -- from the flu or flu-related pneumonias, it would dwarf the number of deaths, at least so far, that we're hearing

deriving from krcovid. i thought that was an interesting way to think about it if we knew how many people died day by day, we would think differently. let me turn back to the oil economy in houston and in your area, which is largely texas, oklahoma, and that region that would a prolonged price depression mean to you, your customers, your business >> i think if you go back in history, again, the same thing happened in 2018, 2017 prices dropped below $30 a barrel and again, it took really until things got to about $34, things looked pretty hairy. our stock -- the oil prices come back quicker than that you know, our customers that we've had, we've had them for a

long time. we have about 47% of our loans are actually in service industry and 53% are on the production side on the production side, that means oil and gas, that they're developing and those customers, at least from the bank we just bought, our legacy that merged with us, actually all of their customers are about 87.5% of their customers are hedged for the next 12 months to 18 months, $50 plus a barrel. so we're -- you know, for most banks, they're kind of covered for a while. so i think we're going to be all right. you know, the oil industry has been awfully tough if you're in the service industry, it's extremely tough i sit on the board with some people that are chairman of service industries and they tell me, there's not going to be a lot of one buying out the other. but it's tough you'll see more and more, but i think there's also -- there's a lot of customers that have been around for a long time they have -- they've been through this

they know it, and you know, again, i think they're going to make it. but there will be some fatalities there's no question. >> david, thank you for spending time with us today it's been an enjoyable conversation i appreciate your common sense and your optimism. thank you. >> thank you >> you're very welcome >> prosperity bank shares. all right. sue herrera has a news update. >> i do, indeed. here's what's happening at this hour senate democrats are urging lawmakers to pass legislation which allows paid sick leave for americans impacted by coronavirus. senate minority leader chuck schumer is criticizing president trump, saying the president seems to be more focused on helping companies. >> and so the administration is proposing tax cuts and bailouts for the airline industry, the oil and gas industry that's just out of touch the wobottom line, we need to p people first >> defense lawyers for former movie producer harvey weinstein are sharply critical of their client's 23-year prison

sentence, which they are calling obscene. >> i am overcome with anger at that number. i think that number is a cowardly number to give. i think the judge caved, just as i believe the jury caved and i am not happy >> you are up to date. that's the news update, ty, back to you >> thank you very much, sue herrera. google telling all, all its u.s. and canadian employees, about $100,000 people to work from home deirdre bosa tracking big text reaction to coronavirus. >> tracking, indeed. policies are changing very quickly in this environment. in the last few hours, google expanding that even further to employees in europe, the middle east, and africa also today, amazon extending its work-from-home policy to massachusetts. in north america, keep in mind that amazon has more than half a million full-time and part-time employees. facebook, it's stopping short of

recommending all employees work from home. but it is, quote, extending global guidance to allow anyone whose job allows them to do so to voluntarily work remotely through the start of april others, including microsoft, apple, twitter, and others have implemented similar work-from-home recommendations there is a caveat here, though, and that's this. it applies -- it's a recommendation and it applies to those that can do so so consider the content moderators that work from special facilities to protect consumer privacy or those who work on highly sensitive units, where other types of information need to be protected there's also support staff, amazon warehouse workers while tech companies may be in a better position than some industries to have employees work from home, this is far from a perfect solution back to you. >> deirdre, thanks deirdre bosa and with silicon valley telling massive numbers of employees to work from home, what does it mean for california and the tech economy and what does congress doing to keep the u.s. economy from crumbling joining us now, ro khanna of

california welcome back it's good to see you again >> thank you for having me back on >> what do you think the economic toll is so far on silicon valley, from this change is going to work, to working at home >> it's been a real challenge for my district. we have some of the largest number of cases of coronavirus stanford and santa clara have actually canceled school for the rest of the year as you reported, many companies are saying that people should telework now, i think that there's still going to be able to be successful doing that, but of course it's going to take an economic hit it's why we need policies to make sure that we're paying for paid sick leave. we need to make sure that we're helping people with student loans, if they're having difficulty we need to make sure we're helping people get health care that they need >> those are all various incentives or policies being floated on capitol hill today. payroll tax cuts doesn't sound like it's getting a whole lot of traction, but is there something you would favor in order to

increase the spending power of households, kind of help people get through a period of time where they might have to stock up on supplies that they wouldn't normally, buy extra medicine, that sort of thing >> we know that the biggest thing to boost consumer spending is to help the working class and middle class and you look at, what are the costs that they're facing. 28 million people in this country are uninsured. we should make sure that they can get to a doctor or get a test without having to pay a lot of money and so the first thing i do is make sure that we extended health care. we could make sure that people that are taking time off from work are compensated, so they have that money that they can then spend we should make sure people that have student loans aren't defaults an those loans. and i would be open to an earned income tax credit expansion -- >> whoa, we just lost representative ckhanna, it would appear there we'll see if we can plug him back in and resume our conversation with him as he was talking about some of the ways

that economic relief could be directed to different segments of the economy and we've got him back right now. you were talking there, when you were interrupted by a satellite psh, representative khanna, about the possibility of paid sick leave for many, many more workers. is this the moment where potentially paid sick leave becomes universalized? >> i do think so we're one of the only countries that doesn't have it it makes so much sense that if you're sick, that you should not be penalized where you don't have an income the other thing, i was just questioning the director of the cdc today, and it turns out our entire cdc budget is $10 billion. to put that in context, that's 1.5% of our national defense budget if we had just doubled that. if we had $20 billion, we would have had the ability to have the testing that we needed we have dramatic underinvested in public health in this country. and we need to take this moment to increase investment in that >> let's talk a little bit about

what has just taken place in san francisco, requiring strongly that no events of more than 250 people take place. the wroirs are now goiarriors ao play a game tomorrow night in front of no fans do you think those responses are appropriate? what's happening in santa clara county your neck of the woods >> i do. we canceled my town hall in santa clara. i do a town hall every singlemon. santa clara and stanford have canceled their school year in santa clara county, they have said that there should not be any large gatherings we need to do everything we can to prevent the spread of the coronavirus. dr. fauci was in front of our committee and made it clear, this is ten times as potent as the flu and people who are elderly or have underlying health conditions are at risk,

so we have an obligation to do everything possible to prevent the spread >> i have to ask, because i sit here and i go, i listen to stanford and harvard and many colleges and organizations, they're canceling classes or are going to online learning, not just for a couple of weeks, but for the rest of the year are we overreacting or do we know more about how bad this is going to get than we've really even been told >> i don't think we're overreacting dr. fauci today said this is going to get worse before it gets better. we know this is deadly if someone is elderly and gets the virus. we know if someone has underlying health conditions, it can be a huge issue. and we still don't have an antiviral. gilead and other companies are trying very hard to come up with antiviral cures. and i'm hopeful that we will have a breakthrough, but until we have a treatment, until we

have a drop in numbers of the virus spreading, i think we all have to take every precaution. that's not panic that's just being smart. >> congressman, let me go back to the question about how you kind of get a little extra money in household's hands without necessarily going through the health care system or some of the other things you mentioned why isn't there as much support for a health care shortcut is there support for getting that money directly to house wolds in a different way, albeit, it might take longer to actually carry that out? just again, to help people who might have to go and stock up on a month's worth of groceries or two months or whatever and don't really have the wherewithal to do that under normal circumstances. >> i think the concern is that a payroll tax cut would end up benefiting employers more than the workers. one other way to get about it is a dramatic expansion in the earned income tax credit we know that 80% of that money

goes to the actual workers so if someone were to propose a way of getting that money in the hands of people who are workers and most of the money is going to them, they would probably get more support and as you know, the earned income tax credit was a milton friedman idea, it was a republican idea. that would be one thing i would support. >> okay. maybe some common ground congressman, thanks so much. >> thank you >> representative ro khanna. he represents silicon valley >> and we have more on this historic sell-off. the dow is down nearly 1,400 points a little bit off its lows of the day. but there you see the wild swings in the dow this week. it has dipped into bear market territory, down 20% from its recent record highs almost exactly a month ago, wiping out today's losses and wiping out yesterday's big gain, following monday's record 2,000-point drop we have much more on these wild markets coming up on "power lunch. and don't forget, another cnbc special report, markets in turmoil tonight at 7:00 eastern time we'll bring you the latest on the markets, on the progression

of corona and koefcovid. all of that at 7:00 tonight. the barkins are empty nesters now.

should they downsize? probably. will they?

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we'll get a check on the markets now. the dow dipping into bear market territory. that would mean a 20% decline from record highs we hit just about a month ago. treasure yields inching a little bit higher but they yield on the 10 year is well, well below 1% at .80 remember it was about a half percentage point lower than that with just two days ago david is president of guidestone capital management let's talk a little more about the markets and the economy. david, let me begin. it would be hard for me to believe with the damage being done in the service economy, which is something like 70% of the united states total output, leisure and hospitality, those kinds of things, that we don't go into a recession for at least a couple of quarters this year. >> i agree, tyler. what we're seeing today is real tangible evidence of reduced economic activity. i don't recall a period of time in the past we've seen this.

conferences cancelled. events cancelled people cancelling trips. companies telling their workers to work from home. in is real, tangible evidence of reduced economic activity that will lead to a recession sometime in the near term. it doesn't consider what the bond market and the stock market are telling us i think we're due for something in the near term. >> thomas, what do you think >> yeah. i agree. i think we're probably already in a recession or about to be because of the reduced spending in hospitality and leisure that is 15% of total gdp so just seems hard to avoid. >> when you get that kind of fallout and i believe it was monday, we had a guest on and he was commenting in his -- across his system, he's probably the largest private restauranteur in the country, he's seeing a major decline in business. david, as jim cramer is fond of saying, there's a bull market somewhere. can you find one

>> well, i'm not jim cramer so i don't know i can replicate what he's doing. >> good point. >> but i would say that where we want to own today in the markets, we're not going to bail out. we're suggesting our clients remain calm and stay invested and renew their asset allocations. if you look at health care and real estate, those are two areas even though they outperformed, there's good value there and they'll whether -- weather the storm. high quality companies with low debt in the industries that will outperform in an economic turn are the best places to invest today. >> sky with the market just hitting fresh session lows the dow was down 1450. the interesting thing about coronavirus is you can say the markets have been telling since early last year that a recession was coming, when we first inverted the 3 month and 10-year yields was it just the catalyst was there something more fundamental that is broken here? is it just that, you know, the

financial markets needed some kind of correction and the underlying economy and labor market won't be strong enough to carry us through >> i think it is deeper than just a run of the mill correction i mean, the industrial economy was pretty weak, partially due to a slower china and partially due to trade problems. then this hit kind of right at that part of the economy was recovery but i think there are two separate episodes. i think this is going to turn into a real recession where that might have stayed in the industrial economy. >> what do you think the markets want to hear you know, if this -- if the message today is kind of a panicked we're waiving the red flag are they waiving it in washington or the fed? what does the market want? >> i think the market wants to see the fed injecting liquidity. today we've seen significantly weak ehrlich widty in the fixed income markets so i think it could be helpful

if the fed would continue to supply liquidity, but i think, ultimately, if there's something that buys a real relief out, it will be fiscal policy. >> speaking of which we have some breaking news out of the fed on repo jeff cox, we'll hear the latest. >> reporter: in response to some market demand, it's increasing the amount of repo operations that is going to be conducting it's taking those overnight repo operations, that top limit from $150 billion to $175 billion it's keeping in the two-day repo limit of $45 billion and it's adding a one-month term repo operation that is going to be up to at least $50 billion for those operations this is pretty important development. something the market has been looking for. the fed made this announcement earlier in the week taking the overnight repo from 125 to $150 billion. adding this repo operations at what the market is wanting and they're extending it they were supposed to wrap up on thursday

we're going to april 13th as part of the market demand for liquidity. >> jeff, thank you very much jeff cox let me go back to you, tom, there's liquid i dity issues it's interesting that people don't want to stick their necks out here, at all will the fed move help >> probably helps in the margins. i think we probably need something more comprehensive than this. i think the fed is showing they're all in in supporting liquidity in financial markets not necessarily prices but liquidity in financial markets with an aggressive rate cut. then probably some yield curve control in other liquidity measures on top of that. i think the market wants to see the fed all in. >> will the market, david, be disappointed if the fed doesn't cut at least a half point? >> yeah, i think that's probably

the point i would make is monetary policy, whatever the fed does, and qe is likely next, is not going to give investors the clarity they need about how impactive the coronavirus is going to be. we're throwing stuff up against the wall now to come up with an earnings number for this year. is it flat down 5 down 10? monetary policy will not correct that clarity until we get the clarity, i think we'll see downward momentum in stocks. >> thank you we're near session lows with the dow briefly down 1450. >> yeah. it has been another one of those days we're watching a market in not free fall but cascade mode this is a water fall effect. it's not -- i was talking the other night and i said i don't want to the use the word crash i use the word cascade he said you're ending up where you would have a crash it's compressed when you look. >> and just to mention, the market doesn't like headlines like the following which we got from the governor of ohio who

said the state ncaa games will be played without sectors -- spectators following the warriors' news. >> i'm sure josh brown will be on the air here in a moment. >> rescue the market, josh "closing bell" starts now. >> welcome, everyone, to "closing bell. i'm sara eisen here at the new york stock exchange what has become an ugly day on wall street dow is down almost 5% today as the sell-off intensifies 59 minutes left of trade. >> i'm karl quintanilla in for willfred frost a global pandemic as the u.s. government urges local steps to fight the coronavirus. hopes for physical stimulus fading as concrete details about a payroll ta