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 tax or other support

measures fail to emerge. on the monetary side, the bank of england, becomes the latest to cut rates treasury yields hovering around 80 basis points. full team coverage of today's market plunge. mike san tolly is with us and meg on the latest on the coronavirus. but we'll begin with breaking news out of washington major bank executives meet with the president today. we'll get to wolf at the white house. >> reporter: the president and the vice president and the treasury secretary currently hosting in the white house behind me the leaders of the major financial institutions of this country in attendance we have the leaders of jpmorgan, bank of america, citigroup, goldman sachs, wells fargo, black stone making it the type of gathering we haven't seen since the peak of the financial crisis. they're all inside, as we speak. what will be on the agenda

well, two main things. number one, liquidity and the functioning of markets number two, lending to businesses that are most affected by the coronavirus. weath whether, of course, we see any hard policies that drastically change the equation or a photo open remains to be seen. most of the ceos were tight-lipped as they went into the white house moments ago. i managed to stop a chairman and ceo of bank of america, brian moynihan, i asked him whether he expects a recession in the united states. >> we're here to have a good meeting with the president my colleagues and i have great companies. well capitalizing and doing what we can to support the american economy and the consumers and companies and we're here to help the president support the economy. >> people have compared this financial crisis. >> i think the banks are strong. >> now, of course, whether or not we see any sharp policies that change the lending environment to small business remains to be seen it's also the first time we've

heard from these bank ceos since the sell-off in broader markets and their stock prices, in particular, the index down close to 40% since the january peak. around 37%, i think, with today's news we'll be listening to hear any comments to say their companies remain strong. guys >> to your point about the banking stocks we're down 5.5% for banks right now. one month performance just ugly, ugly, ugly down 26%. how negative do you think they're going to be about what is happening in the markets and with their stock prices? great question, sara really genuinely a very -- anticipating anything they have to say on the share price move, i would say two things clearly, the broad reason in which they have sold off so sharply over the last couple of months have been the yields have collapsed as we well know the earnings are closely linked to

yields interestingly, they did enjoy a healthy bounce yesterday for the first time a bounce that was larger than the broader market rally though today you may have expected them to hold up a bit better than they have done so. why? yields held up today but that is not the case again, it just shows that broad risk sentiment we see in markets that banks are always a big part of not least when you have questions about the violent of future of companies, whether it's small or medium sized businesses exposed to the virus or larger energy companies expose to the oil price sell-off we'll await any comment in this case can give to reassure the market their balance sheets are strong and their futures are certain. and maybe they can deliver a bit of a rally to the share prices today. >> as you're speaking, we're seeing fresh session lows for the dow. now down more than 6%. more than 1500 points on the

dow. putting us in correction 20% from the record high we have 56 minutes left of trade. another painful day for the bulls, clearly take a look at the price action on the dow as far as who is moving the dow lower, i mean, it's 30 out of 30 in terms of dow stocks that have been lower you've seen big moves. united technology is down 9% walgreens, microsoft, united health group all down sharply. you know, it's just a broad swap. >> you can't ignore boeing, either 17% of the dow's decline from the highs. >> dow also the chemical company down 10.5% we'll get to bob at the exchange. >> it's a broad take down 5 to 6% of the overall market sara is right, there are certain sectors of stocks doing worse than others and they're outliers we don't often talk about this but this is the big global packaging company. they make chemicals used in manufacturing processes all over

the world. and one-third u.s. revenues, one-third europe, and one-third asia almost the perfect global company. that -- stock is down 40% in th last month there's an indication it's a company all over the world there is united technologies sara mentioned that. you can see it down 11%. the company gets about 45% of the revenues overseas. another company spread out in many industries across many countries around the world down much more than the rest of the market finally, any consumer companies nike is sort of performing with the market today but 60% of nike's revenues are overseas the implication here, they're down a little bit more than the overall market the implication here that even consumers may have less money in the global situation that's what's been impacting nike you can see the broad tentacles of this coronavirus impact on

the markets. guys, back to you. >> all right, thank you very much josh, what do we make of the price action today and everything we built in in terms of resetting expectations the past couple of weeks >> there's not a lot of good news on a day like today but i'm going to say a couple of things i think should be encouraging to people who are long term investors. the first being diversification is working today, finally, bond yields stopped crashing but bond yields have been on this run away train lower which meant that bond prices have been going higher that's across the entire spectrum of fixed income other than jump bonds this week. if you have a 50/50 portfolio, and you're within 10 years until retirement, this does not look quite as bad as an entire screen filled with red. because you're not overlench leveraged in the stock market.

assuming you didn't get out of bonds because you thought there was no juice left to squeeze assuming you kept the asset allocation going into 2020, you're not looking terrible from that standpoint. for younger investors, we have 73 million millennial's, the majority of whom are in the work force and many are actively contributing to 401(k) it doesn't feel good but they're buying the s&p 500 at a 20 or 21% discount to where it was trading a month ago. it's a bigger issue for their parents than it is for them and for people who are first in the accumulation mode. and a couple of other things i want to throw in quickly good news is the white house and corporate america are now talking. they're fully engaged. they're taking this as seriously as italy and china have taken this prior and south korea i know it doesn't feel like the market likes that, but in time, the market will come to say this was the week that everyone got serious about tackling the

issue. the other thing i want to throw out there is nonfinancial. it turns out we don't have cases of children contracting this virus. we don't have hospitalizations of children. there's a lot of reporting about that today i do think there will be more school closings. i do think that's on people's minds that have kids but the good news is that this really seems to be confining itself to people who are older and not younger. i know it's -- we're searching for a silver lynning but i thought i would bring that out as kind of my last remark on the topic today. >> great point sara and i were talking about that the other day how different if it would feel it were targeting kids. >> all the more scary. even more. >> josh we'll get to you in a bit. in the meantime, we'll get to mike santolli. >> the key level in the s&p 500 that bumped along as the floor for the last couple of days gave away since 3:00. look at the two-year of the s&p. the csignificance is how far it

takes us back in time. 2713 we're below from last june around 2730 so we've kind of wiped away, you know, 8 months worth of gains in a pretty good hurry. we had david talking about getting out to the 24s that's over here levels matter but what is interesting is the dynamics here it seems like you had climatic downside flush action on monday. very washed out and oversold and now we're going through the index levels with a little bit less selling intensity we'll see if it holds up by the close. clearly the market is struggling to stay ahead of the perception of what the economic impact will be of all the measures we're taking right now now, the credit picture is another element. that's been kind of a second order effect it's not necessarily been positive this is the etf mode that's high yield junk bonds this is investment grade corporate's. the latter too acting poorly

relative to treasuries here. that's on the radar. it will restrain rallies if it doesn't around and etf doesn't actually move with the cash bonds. right now, this is showing derisking happening across the board and we're hearing things like, you know, boeing drawing the full credit line it lends to this idea that on the credit front you're seeing some stresses and cracks we didn't anticipate before. >> yeah. we'll get to the boeing news and what to make of that 6.3% is the loss on the dow now. 7% would trigger a circuit breaker. >> right. >> i believe it's up to to 3:25 >> yeah. okay >> all right. >> after 3:25 -- >> let it go. >> i don't know. i know 20% usually shuts for the day. how much is the market is pricing in a recession >> it's close. a third of the s&p is down 30% at least from a high i don't think evaluation wise,

though, we've necessarily gone down to some kind of core bedrock level that said we built in 15% earnings declines, which is probably what you see in some kind of a recession. i think we're on the cusp of really considering that more deeply in the numbers. i think the problem is we came from a expensive spot to start with. >> all right there are now more than 121,000 coronavirus cases worldwide with more than 1,000 here in the u.s. the world health organization declaring a global pandemic. meg has more at headquarters. >> hi, sara. the w.h.o. making that declaration several weeks after many in the public health community thought it should have noting today not just the concerning spread and severity of the disease, but also what he calms, quote, alarming levels of inaction he's seeing in response. >> some countries are struggling with a lack of capacity. sol companies are struggling with lack of resources

some companies are struggling with lack of resolve. >> in the past two weeks, he said the number of cases outside china has increased 13 fold. the number of infected countries has tripled. there are now more than 121,000 cases worldwide, and more than 4300 people have died. in the u.s., a major shift toward medication today from several areas. washington state restricting gatherings of more than 250 people and several hard-hit counties san francisco up more than 1 sthourks people. we heard ohio may be making similar moves, too still public health experts saying more actions are needed scott gottlieb telling us there could be ten times as many cases in the u.s. than the 1,000 or so already detected here and we have a narrow window to act. >> how much of that is accounting for additional testing, meg, versus the number of tests we're doing now >> the testing is tremendously important, of course

aei are compiling data to track or testing capacity. right now they estimate it's about 16,000 people tested per day. gottlieb tweeting out the cdc made regulatory changes so samples can be combined and perhaps we can double the capacity based on the regulatory change so that will be important but we're also hearing that capacity is really spotty around the country. so even if there's a lot in some places, not everywhere has as much as they need. that's an ongoing problem. >> meg, thank you. down 6.7% now on the dow, guys new lows down more than 1600 points >> one thing to watch for, if we want to do the score keeping of it, if the s&p closes under 2709 that's your 20% loss from a peak, which you can basically decide to label it a bear market and -- >> why are you a fan of that >> umm, it's fine. we have to draw the line somewhere. i think that a real bear market applies duration and a longer term reckoning, which maybe

we're in for i think it's not as if you ring the bear and say we did it you have to see where it goes from there. >> speaking of trying to ring bells, the dow falling down 20% from the highs a month after hitting the record after goldman did say in a note earlier this morning that the end of the bull market would be coming soon. david coston talked to us earlier and said despite that forecast, things could turn around later this year. >> if it takes some negative assumptions, we have energy prices down. we have, which is obviously affecting energy earnings. we have lower bond yields across the yield curve. that's, you know, a pressure on the day. we have lower earnings in the bank sector. you have negative, you know, consumer is also pulling back. those are the drivers of why we have overall properties coming down and so the question is, how will it be distributed across the course of the year and our estimation is the second and third quarter. later in the year, as the market is looking forward, investors

look forward until 2021 a positive earnings growth in the next year. >> let's bring in liz young. good to see you. david's point is that big mid year slump but end the year at 3200, as you've drawn assumption this ends within a couple of quarters and you make it up in q 4. >> let's start with the definition of ending a bull market right. we can call this a 10 year bull market or we can look at the fact we have touched in the bear territory, depending on the index you're looking at. a few times in that period so i'm not convinced we haven't already ended the bull market a couple of times. if the definition is we go into a bear market and stay there for awhile, then, yes, i think that's plausible here. i think if you look back at 2008 -- 2018 we crossed into a bear market for a whisker of time and the market decided we don't deserve to be here it was no our control to pull out and the fed changed their language we had other things happening in

the trade war that kind of pulled back. these forces are outside our control. and i want to go back and reiterate something that josh said at the top of the show, this is why diverse indication has been important this is why we've been preaching that especially along the treasury yield curve. you don't want to be in short duration you need long duration to offset this hopefully people are positioned that. >> how would you advice investors to position around equities now >> i would say number one, especially on traumatic down days like this this is not a time when you knee jerk react and do anything about it in the equity market. if history is any guide and history being the last seven or eight trading days after a down day, i have a little bit of a prop who knows what happens tomorrow. if you're overly exposed to passive equities, if you're overly exposed to market risk, i think some of those days trim it back a little bit. you don't want to be overly e posed to the emotion. >> index etf. >> particular if i in the e

marging market pace. >> if we close here in bear market territory, viewers will get hammered with headlines that say the average bear market last 13 months. it's down 30 what do they do with that? >> well, so this is what is interesting. and mike made this point earlier. let's assume it is a recession pretty hard to see how we escape that, at this point. even everything closing. first of all, it's not caused by financial conditions like 2008 it's not being caused from within the financial and housing sector the banks are as well capitalized as they've ever been so we're not talking about the financial system cratering are there credits we should be worried about like energy and industrial absolutely not everybody survives recessions we know that if it is to be a recession, and if that's the viewpoint we're go to coalesce around, a lot of

stock market damage has been done we're not starting from a stand and stop in terms of the stock market's reaction to a potential recession now. we can debate, other only 10% of the way. or we're half the way there that we need to be. important thing to remember about the recessions, they cannot be called in real time officially they're called after by the nber by the time it's official, stocks are already usually recovering so i want to be clear here, this doesn't at all remind me of 2008 not every recession is a global destructive moment we've had regular recessions along the way. it looks a lot more like post 9/11 environment where we didn't know what the next thing would be anthrax in a letter? an un, you know -- a suitcase in a train station? we have that moment then this feels more like that with every new case being reported, with every new event being cancelled, we should get used to tape bombs

when we cides like yesterday, and we'll see more, classic bear market rally up a thousand points on very little news. >> yeah. >> those are the moments where we say, okay, if yesterday felt bad and today feels great, let me use the opportunity to make sure i'm taking the appropriate amount of risk. >> market doesn't feel comfortable yet. seems like with the tape bombs the headlines that are out there and scary. i mean, a 20% down close a bear market does that become self-perpetuating? you know, where people, you know, want to derisk where it hurts the economy what is happening in the market and not just, you know, consumers raising up because of virus fears. >> i don't think the market should be comfortable yet. we don't have confirmation of the data we're not done with the first quarter yet. we're expecting to last through the first half we don't have data that makes the market comfortable of any direction either way it will continue to chop around here. >> a close in bear market territory is a signal but it's

more of a signal if the market decides we deserve to be in a bear market. if we expect this puts us into a recession, no matter how long, then we probably do deserve to be in a bear market. a bear market with a recession is usually a little bit deeper than 20% so i would expect it to continue going down from there. if the market says, yes, it will cause a recession. >> what about the point josh brought up not everybody survives a recession. there's a school of thought that is worried about the debt bing companies have been on and who will be left. >> right that is is a concern it's a fair concern. one of the scenarios we look at very closely is the fact that the market could send us into a recession just because of some of those vulnerabilities but in a recession, it is true you shake the tree the bad apples fall off and the healthy ones stay. that's how it works. >> what about your portfolio. >> this is when financial statements are important the market hand paid much

importance to fundamentals if you're looking at buying companies, you want to look at the health of all their balance sheets, their cash flow, their debt, their leverage then especially with industry. for obvious reasons, you don't want to be that exposed to an energy company overleveraged. >> the market is helping you to decide. >> yeah. >> if you see extraordinarily high dividend yields they're not sustainable and the balance sheet is not really standing behind the equity. >> a lot of those in the energy. >> energy and old retail. >> yeah. >> liz young, thank you. >> thank you dow is down 626 points right now. coming up later mohamed el-erian will join us with his take on the sell-off he's had a few spot on calls lately. >> been really good. >> don't catch a falling a knife, et. cetera. >> tonight don't miss "markets in turmoil" 7:00 p.m. eastern time we have about 38 minutes left of trade here take a look at the s&p 500 key

map. we're seeing every single sector lower and lower by at least 5% except for health care just under 5% but sharp declines in places like industrials, energy, financials i mean, sectors along with oil which has been suffering lately and there is a sea of red. mike, what is broad based. is anyone holding up here? >> nobody. nobody of note nothing that strikes me as a fee. on a relative basis, consumer staples have done their job. treasury yields are up today it's not exactly playing to script so i can see a scenario where we come, you know, in tomorrow and assessing what happened. but the danger in this whole phase has been extrapolating one day's action to the next. >> we go up 10% from here and it's a pure bear market rally. it gets up to the levels

that's the zone we're in now you can't put your hands on near term earnings forecast or any of these other things we normally would anchor ourselves in. >> yeah. we hope there's more clarity coming in the weeks to come. boeing, by the way, as sara said, the worst performer of the dow as the company reports more cancellations than orders in februarys and announcing t freezing most hiring let's bring in cnbcle leslie josephs. >> hi. >> hi. >> what do we make of the series of headlines we got from boeing on credit draw downs, the cancellations, on employees testing positive and more. >>well, one thing to remember about the orders and cancellations. these are february numbers kind of before the whole thing sort of blew up in an international way, especially in the united states where, of course, boeing has big customers. we did see more cancellations than orders. not a good sign. especially going into an environment where airlines are ailing you can see the stock prices for

u.s. airlines, by the way, some of the best positions in the world to handle a crisis like this so the best house on a bad neighborhood you have that sort of situation is the trau down being seen as a prudent measure. hilton had a similar announcement this afternoon. >> right that's what it's there for if you back to january, a whole series of banks, by the way, they were looking at maybe about $10 billion some of the numbers we were hearing and they went up to close to $14 billion. banks were very happy to lend to boeing it was a company that had a stellar record for a long time a very big order book. drawing down, this is what the loan is for. for times like these boeing isn't planning any layoffs for the moment they're looking at it day by day but they need a cushion in order

to weather a crisis. and you see deferrals and possibly cancellations moving forward. >> josh, what do you make of boeing tapping the full amount of the nearly $14 billion loan >> well, i think if you're concerned that all of that money won't be there when you actually need it and now it is, and you can get access to it, i think that might be something that you'll see elsewhere there's some reporting today about, for example, some private equity firms telling some big companies they're invested in, now might be a time to look at liquidity and whether or not they should get ahead of the curve. don't be totally surprised by it i think you'll keep hearing the same phrase over and over again. it might be the phrase of 2020 out of an abundance of caution, dot, dot, dot. this is how many communiques from fortune 500 companies will start. how letters home from your kids' school districts will read

out of an abundance of caution the more you see it, the more it becomes a self-fulfilling prophesy i think it's applicable to what we're seeing the stock market, to the boeing news, and to a lot of other things that will come out later on. >> what is the health of boeing? >> i mean, it's not -- it's no emergency. it's been a highly rated company. i mean, there's a ton of bond outstandings. >> it was already struggling with the 737. >> for sure. it's a cash flow issue for sure they're padding out the near term in house cash balances to make sure that as cash flows get pressured, they can cover it at this point again, the market will tell you, this, to me, is one of the kpampbls everybody here knows you have to wait and get a critical massive data the market doesn't wait. >> how do you advice viewers to

keep their emotions in check you had a good line it doesn't remind you of '08 but there must be ideas and tips to realize it's part of a rationale reset. >> i think it's important to remember how flush with liquidity the world is it was one of the chief complaints we had been hearing for years is there's too much capital for everything evaluations are no good as a result at our firm, we're concerned about the bond market than the stock market and not concerned in the way you might think. when you put together portfolios you're using assumptions of asset classes. what can we assume is the return for a latter portfolio of treasury bonds you can almost set your watch to the fact a 10-year treasury, for example, is approximately going to earn over the next 10 years whatever the starting yield is it's like a 95% correlation that goes back through history. with a 10-year yield of 50 basis

points and inflation at 2%, how can you possibly be thinking, my god, i want even more bonds now. so if you pull that out of the equation and say what are people going to do with their money they needle yield on here are two ideas, you tillty -- utilities are 15% from the peak and rates are 18.5 to 19% from the peak. i'm talking about days ago so if you're thinking what are the family offices going to do what are all the hedge funds going to do? all the insurance companies going to do? pensions endowments that need to earn something on their money and don't want to lock in guaranteed losses versus inflation, start thinking about areas like utilities and rates. they have come down substantially. they can certainly come down more they're not as safe as a treasury but it's a huge differential in yield right now. i think that will be the first area where we see a true bottom happen even if it's not for weeks or months. >> that's interesting, mike.

we think treasury bonds put in at least a tactical top, if not a more meaningful one. time will tell our confidence is higher for bonds than equities. >> yeah. in a way that was the more dramatic move. it was in bonds and the buying frenzy they went on a lot longer than you would have expected it to. and so i think that is interesting. it's playing along today you have yields up, i mean, just think of the magnitude of the yield skump jump from the overnight lows of the 10 year. .3 or so that's a tremendous jump in a short period of time that maybe does mean it's a recession. >> what does it mean in terms -- does it mean it's a tell that stocks could bottom, too or a tell that bonds are just not leading stocks anymore >> i think there's play in that relationship right now because stocks have more room to go down than bond yields do and 10 year isa .3

it's the connection point between treasury market and equities. >> just to button up the boeing conversation it's shaving 252 points off the broader average. one reason the dow is doing worse than the other major averages our thanks to leslie joseph. a quick check on cruise stocks that industry proposing passengers over the age of 70 can only board the ship if they have written consent from a doctor it's also proposing to increase standards for cleaning as well as expanded travel ban to italy and japan. cruise stocks getting no love again down double digits look at this look at the damage on some of these stocks down 24% for norwegian carnival down 11 royal caribbean down 15. we talked earlier to a lobbyist for the cruise industry.

didn't go there on financial stimulus but clearly investors are starting to wonder about it. >> just wondering about long-term demand dynamics. even if you thought they get through this phase now the market is pricing them for -- >> what doctor is going to give a 70-year-old plus written consent to go on a cruise now? broader market check this afternoon. we'll get a word on the street now. the top internet stocks, i believe can do well. the top picks include amazon and facebook with the firms saying amazon could benefit from increased demand for health care and grocery products uber is lifted with the top picks. it's interesting to see how the dynamic plays between amazon and netfl

netflix two stay at home names under different capital structures. >> for sure. >> also, darlings of the market. >> yeah. >> you have the long-term tail winds working against the fact that people have a ton of profits in this area they traded at a big premium they can give that up. and they are outperforming as a group of the market now. if you look at things like the nasdaq 100 and looks like it has still a residual uptrend in the last couple of years as opposed to the broader market. >> one thing that is different, in new york city, if you get in an uber now, it smells like sanitizer. they're very aware of what is going on revealing the best position by rated retail stocks amid the market pull back analyzing stocks through factors through cash flow yields from 2008-2009 recession

topics there include alphabet, starbucks, jpmorgan chase, and microsoft. it's that time, i guess, when analysts have to look at the leverage ratios, look at how some of these names did during prior recessions. >> there's that and also just, look, we think it's down because the market is down it's at prices you would have begged for three months ago. if you're in the business, i mean, you know, if you're a professional investor or a long-term individual investor, are you in the business of buying 20% breaks in three weeks or not if you're not, it means so you to have something bad coming. >> yeah. cramer's point was he likes utilities and he likes the highest growth tech. who do you include in that universe >> highest growth tech i'm not sure there will be much growth for most technology companies in the next quarter or two. if we're talking about secular

growth, when the dust settles on this, i think it's pretty likely we'll still be using iphones i think it's pretty likely we'll be ordering more and more things on the internet to be delivered to us. so maybe i would be thinking that way i agree with what he to say on utilities. i would point out there are special situations in this market and we talked about some of the quote, unquote, stay at home stocks. i've been in a few for months like zoom. not anticipating a crisis like this, of course, but just because more and more activities are moving into the virtual yule sphere i think, if anything, an event proves that companies can have their employees work remotely. you'll see it in the future, when you look back, you'll see the crisis as an accelerant of those types of trends remote working and things that have nature i think that's a good place to think. and, lastly, i want to bring out something like a berkshire hathaway we don't know what mr. buffett and ted and todd and charlie

monger, we don't know what they're doing, other than avoiding airports now. we know they were sitting with $130 billion in cash that people were screaming at them for not using. maybe they buy back 10% of the flow at berkshire. you know, maybe they're looking into that as an option maybe they're thinking about something in the energy space or the travel and leisure space we don't know but that stock, if you invest in it, gives you that optionalty it's come down here along with everything else. that's an interesting way to think about which companies are in the best position cash wise to take advantage of potential strategic opportunities. >> just checking in on stock market now down 1600 or so on the dow, which is actually a little bit better than we were looking 10 minutes ago. down, excuse me, 1366. still it's a decline of 5.5% on the dow. a lot of that is boeing. but the overall s&p 500 down

4.8% adding to what has already been a miserable week here for the bulls. just looking at the one week performance. just over the last week, down 12%. here are three thing drooifsing the action now w.h.o. declaring a global pandemic let's get back to mike this time taking a look at sendment indicators. >> yeah. have a big bruises decline like this looking for the loss of hope not necessarily seeing it across the

board. especially among more professional investors and measures of positioning. this is a weekly bulls minus bears. it's a net figure. as you can see, we're above where we were in december of 2018 above where we got to around the turn of the year through 2006 when you had similar magnitudes of declines. i think what we're still missing right now is the duration of this decline it's beens not months. part of david's call today is broker age clients are still carrying relatively high gross leverage in other words total positions they have on the books both long and short. you see they have not derisked totally. that's something you would expect to bleed lower. it will look like it's a general uptrend and that's true from the early part of the decade there's been more in the trading

area some of the tactical stuff looks slower slower moving stuff not quite there. >> thank you meantime, the nasdaq is outperforming the other indexes. down less than 5% now. obviously sharp declines, nonetheless. we'll get to bertha. >> yeah. it depends on what level you're talking about in terms of the nasdaq large caps. they are more or less outperforming. not dow as much or challenging monday's lows just yet, but when it comes to the smaller caps, we are seeing that. the nasdaq composite now is laying somewhere around the level of monday's close. chips among the big drags. small caps putting in new lows today and the rest of the s&p mid caps today that's dragging

all draft hitting a new low along with the travel stocks that continue to hit new lows like marriott, walgreens not a new low but also seeing a big decline notwithstanding the fact that folks are turning to the drugstores to try to find a lot of supplies to keep themselves clean. gill began sciences, which is working on a treatment for the coronavirus is among the stocks today that has remained consistently the handful of stocks consistently to the outside. but there, too, you can see there has been tremendous volatility when it comes to bio teches it is down for the week. over to you guys. >> thank you today's plunge continues with what has been a roller coaster ride for stocks. our next guest said he sees buying opportunities for investors. joins us now is tom fink.

>> thank you for having me when you get in the situations like this, it's less about the day-to-day buying but more to the point of where you see value. across fixed income markets and high yield markets, you know, we're ready for times like these to buy good value names. i think the issues you have to be weary of you position yourself for value other the course of the event. you also have to be prepared going in that you manage your portfolio to avoid the weak spots, as well. >> where would you look to be picking up names in longer term scenario you painted

>> i think we've had commentaries about solid names in equity sector, you can look at sectors that are less sick kel. stay away from sectors like energy we've been underweight energy for some time now given the situation that is going on there. and look at some more growth compani companies or stable companies with secular growth tends you can invest in. but also invest higher up the capital structure. it's about being defensive. >> hey, john we're waiting to see what kind of package the house may propose in terms of household relief, consumer relief. the degree to which we may or may not get a vote tomorrow. we'll see. if it's financial and paid sick leave expanded unemployment insurance, and the like, how

much protection would that get you in the consumer names? i think it's hard between any specific names this situation is unique i agree with one of the earlier commentators this feels a little bit like 9/11 and what is different here, though, is we still don't have an idea of how long it'll last and i think that continue to weigh on consumer names. so you have to be pragmatic about what a one stimulus passage can do and how quickly it can make a difference. >> thank you we'll talk to aaron levy and the stocks on the cloud and coronavirus as more employees work from home that exclusive interview is coming up.

in the meantime, josh, what is your last chance trade? >> so, one of the things i try to do on the show when i bring trading ideas is come with a stock loss i basically say, look, this is where you pull the trigger and the market tells you you're wrong. in this atmosphere, really, you can throw the chart the out the window you have forced liquidations you have people selling for unfundamental or economic reasons. the best thing is take a look at the stocks, the list of stocks, and i put some here that are nonoil, nontravel, and furthest from their 52-week high. these are the stocks that had thebiggest concentration of damage i would be looking for names with good balance sheets that are not oil related that have already been wiped out. it doesn't mean they're automatically buys i think it's a better place to

start. >> all right about 15 minutes left in the trading day. we're about to enter the closing bell market zone commercial-free coverage of the action going into the close. >> bond yields are higher. i'm wondering if people are selling anything liquid and this is a mass liquidation as credit markets are forcing stress here. >> it could be there was such an intense panic in bond land and it eased up slightly we spent almost the entire day today in the stockmarket

any kind of headline that said we're here to try to interrupt this cycle of bad news feeding bad news. >> to the degree we revisit last week's low again today in the meantime -- how many reps do you need before the feels like support >> i think the more times you settle on it, the weaker it gets but i think you can at least say you were you're approaching the zone where real money buyers would start to get interested, if there was any sense there was an exhaustion of mechanical urgent selling and, arguably -- >> i get that's part of a technical phrase, but the news

flow so uncertain. the fact we still -- we talked to a doctor who runs, you know, a huge hospital that said we have nowhere near enough tests the news out there like that, how can you get a sense of how long it will act >> you can't you can't get a sense. that's why it's all about the market just not moving in a straight line. and we've kind of perhaps a 20% move in three weeks discounted the next couple of days of bad news that's the test you have to overgo. >> the bad news today on the coronavirus, the world health organization designating it a global pandemic officially. >> hi, sara. the world health organization calling covid 19 a pandemic for the first time saying it's a pandemic that can be controlled. director general was tweeting there's been so much attention on one word but these words matter more. prevention, preparedness, public health, political leadership, and people he said it's not just the disease is spread in severity that is concerning but, quote,

alarming levels of inaction around the world as to which countries the w.h.o. head of emergencies dr. mike ryan said you know who you are countries not testing broadly enough have given up too early on contact tracing and some companies, he said, haven't been communicating well with their populations and giving confusing messages guys >> what can you tell us about that report out of politico which was confirmed by the cdc that there isn't enough of the material, the mrna needed to identify within tests whether people have the virus. is there a shortage? is it part of the problem? >> yeah, this is something that i've been digging into for a couple of days a professor at the harvard school of public health tweeted about the poesh shortage in the extraction kits that are necessary for doing these tests. i checked with the major manufacturer that said it's having some pressure on its ability to supply this because of the huge demand

they're ramping up capacity for manufacturing in two different countries. they're hiring more workers. and they said right now they're able to supply to the u.s. as well, i've been checking in with the commercial manufacturers and trying to figure out from their perspective if there is going to affect them. my understanding from last quarter, they are not seeing this kind of problem because they're using their own laboratory developed test. this is a concern, certainly we are also hearing about the cdc making news to increase testing kpachlt, as well but clearly an ongoing problem, guys >>well, meg. thank you. there's a headline we're working to confirm from bloomberg. that is black stone asking its companies hurt by the virus to tap credit lines not much more to go off than that it's not unexpected something a story like that come across. >> yeah. you have back up credit lines for an unexpected need that's where we're at now. i think it's one of those things of it's a measure of prudence,

even if there's reluck -- reluctance to do that. if you're blackstone, you own the private companies. >> you're an investor, josh. what do you do >> that gets back to this out of abundance of caution i think everyone should expect to hear more of that whether we're talking about the golden state warriors playing games without the fans or google telling the employee base to work from home, this is going to be an ongoing kind of rolling motif for the moment we're in. i like abundance of caution. i would rather people be too cautious than not cautious enough i think we already played that game in the first four weeks of the coronavirus story. now we're playing a little bit more cautiously. things are happening meetings are taking place. again, it doesn't feel great if you're looking at the tape, but i think it's constructive and i think we're getting closer to the point where people will have more confidence in the policy response. >> by the way, from the banks' point of view, it's one of those deals where, you know, you agree

to provide this money in a certain situation, but now it's on your balance sheet. now you have to have capital it's not great for the banks if this happens across the country. >> we're getting headlines from the meeting between bank executives and the president willfred frost at the white house. what can you tell us >> reporter: yeah. they're in the cabinet room, as we speak, at the moment. and our colleague is in the room sending headlines to me as we go firstly, the president saying he's meeting with the most important banks in the world he said we already made some decision today we'll be making some others that are important in due course. he handed over to brian moynihan of bank of america who said the economy is still, quote, "strong" and the u.s. banking system is here to capitalize they're here to help small businesses and consumers weather the storm. the ceo of citi said bankers want to provide liquidity. the president picked up, again, after that said and prior to the

coronavirus, it was all just go. the numbers from a week ago were great now we're hitting a patch and we have to do something, he said, and the president continued to say the number one priority is the health of our country. the president then ended by saying that part saying i'll be making a statement later on tonight about what i've decided to do. we're not sure, of course, what exactly he means rumors he might be declaring more of a significant state of emergency. and just, finally, all of these statements incredibly encouraging as they are, haven't lead to a bounce in the bank stocks as we approach the close. going back to what you were discussing and mike said do we see something concrete in policy are reassuring tones of statement like we're hearing from the meeting, guys. >> thank you keep us posted if you hear anything else. 8:00 left until the close. 20% off the highs for the dow.

1460 points is how much we're lower by the dow s&p 500 down about 5%. part of why the dow is down so much harder, shares of boeing getting absolutely lam -- slammed. after the company announcing it's freezing hiring except in critical areas the company said it recorded more cancellations than orders in the months of february. i guess this is -- it shouldn't have been a surprise we know airlines were hurting and boeing was hurting. >> for sure. i don't think it's a surprise. i think it's going to a tape that is willing to take the negative to heart. it's also just a long wait you'll be waiting a long time so you can get back to the point that boeing was near the highs which is look at the bullet proof 20-year order book we can harvest cash flow off of forever. by the way, air travel down so much less wear and tear on planes i mean, you know, fewer hours on planes you don't necessarily -- at the margin, need as many as soon as you might otherwise.

>> it's amazing. stock was 400 plus it seems like not long ago we have a confirmed coronavirus case at a large hotel in las vegas. we have details on that. >> large, indeed mgm resorts putting out a statement one of the guests has tested positive for coronavirus. we know it was a woman we know this woman was from new york the company saying they're currently coordinating with the southern nevada health district to notify guests and employees who may have had close prolonged contact with the individual and are directing our employees to follow all self-quarantined requests we know they're deep cleaning and stantizing the individual's room, access to the room remains were restricted. apparently it took place march 5th through the 8th. a couple of well-known people attended or honored at the event. deborah lee, former ceo of b.e.t. misty copeland, the popular

dancer all in attendance at that event. it's unclear who the individual is but mgm saying they're working with the health department to notify folks who may have been there. back to you. >> all right thank you very much. about five minutes to go here we'll get to brian sullivan who has been watching the incredible moves in oil and energy this week hey, brian. >> hey, carl i'm not sure i have a lot to add. the price of oil down again. not as low as it was a couple of days ago, but it did fall about 5% today or at least unless something changes. you know, and you look and say the xop, the big oil and gas etf. i heard josh saying basically he put together a shopping list with anything but oil and gas companies. apparently everyone else agrees, as well. because you look at the xop. it's under $9. let's consider this, in 2016, oil hit $25 a barrel briefly but it hit that. the xop was at 22 or something

like, i think. it's now at 9 and oil is higher. the reason, of course, we've said that a lot of equities have been in big trouble. i'll leave you with this stat, carl, the average return of a stock operating in north dakota, the oil region there's a few others the average return this year is negative 78% since january 1st. that's the kind of scenario we're in with the oil and gas stocks i have a feeling in a few months or year there will be fewer oil and gas stocks that we talk about every day here on cnbc. >> just ugly, ugly across the board. brian, thank you we'll see you in a bit josh, the oil price war between russia and saudi arabia, how much do you think that is part of the story here with the broader market with the credit market, which a lot of people are worried about. coming at the same time and not unrelated to coronavirus.

>> it's a huge part of the story. it was the equivalent of squirting lighter fluid on a bonfire that was well underway maybe part of that is intentional. oil earnings are not important to s&p 500 overall earnings. oil stocks, in terms of market cap, are less than 3%. they're not important either however oil, energy in general, is 6.5 million jobs directly tied to energy and think about the multiplier effect. probably triple that in other industries that service people who work in oil and gas. hugely important it's obviously regional. more important in the real economy than on wall street but certainly weighing on sentiment. i'll leave you with two stats i think are even more mind blowing than sully's number one, the xle now has negative returns back to the year 2005.

never go all in on one sector. that's an entire s&p sector that lost money over 15 years you bought it and did nothing. the other one is the mlp this has been sold to investors for at least 20 years as a toll booth business that is not energy sensitive because they're just pass throughs it has a negative lifetime return meaning if you bought it the day it came out, you have not made money if you held on to it i think we need to be serious when we buy equities with high yields and high dif dents. that's not quite what we're doing. >> yeah. painful for anyone who has been in that. mike, give us a quick take on the market internals. >> yeah. watch out. this is the kind of thing that will be scrutinized. maybe there's some action or not. look at the up versus down volume more than 95%. again, it's the fifth time during this water fall drop. and, also, i want to point to

the volatility index i know you'll people saying it looked like maybe a false break down we closed above the lows it might be splitting hairs too finely at this point that's the conversation now as we try to sift through the little clues. >> absolutely true less than 2:00 to go bertha, what are you seeing? >> yeah. i was watching similar moves here we're slightly off of the lows of the session look at apple and microsoft, they're closing above monday's lows alphabet, however, is not. alphabet is right where we were last monday as the company announced its asking the google north american employees who can to work from home. more than a thousand new lows today. that continues for the third straight we've seen it hospitality among them real carnage we're seeing trip advisor, extended stay at all time lows. marriott at a 15-month low some of the stocks that have surviving are those that are tied to coronavirus but still

not great for the week over to you. >> stocks and bonds both down today. look at the agt which is the big bond etf [ closing bell ] we'll talk about that a little bit more later on. still no bounce in bank stocks the white house saying it's not a financial crisis but the banks are kind of acting like it it's the closing bell. we are off the lows today but the dow jones down 1467 points welcome to "the closing bell." i'm carl quintanilla. >> i'm sara eisen. here with mike santolli. that'll do it for the bear market in the dow. >> at least for the dow. the s&p not quite there but we'll put an end to the 11-year bull run in the dow as it closes right around 2350. there's a look at the s&p, as

well the 2741 about 10 points higher than last week's close and the russell 2,000. coming up a cnbc exclusive with aaron levie. he'll weigh in on the coronavirus and if the cloud can handle the influx of employees working from home. plus mohamed el-erian joins us whether he sees any opportunity in the volatility. also joining us to talk about the market today is brian nix is here. josh brown is with us. first, though, to you, mike, on just we've seen 12 sessions up% 3.5% today no exception. >> i think the 10-day average move is over 3.5% right now. and the market is having to go range more widely every day to find buyers and sellings with any anything to make a call. i think one thing that is worth pointing out, though, if you

spend every day this week kind of turning over the same territory, the same roughly 1500 points of dow, we've done that down, up, and down again it doesn't mean we're done but it means at this level, it's a lot of trench warfare going on i think you probably play it either way and say maybe there's been enough selling for the moment but we also, perhaps at the end of last week bond yields hopping, though, today. i want to see if it's a difference in the character and complexion of the market. >> we're down 8% for the week. it's only wednesday. [ laughter ] >> yeah. >> what do you tell your clients? >> we're saying stay calm. we don't think cash is the right place to go in this environment. we're saying, you know, if you find your portfolio out of whack, consider rebalancing. it might be something we saw today. why is 10-year treasury up so much it might be people rebalancing. >> or maybe raising cash. >> could be. and the fact that bonds and

stocks is disconcerting. it means even the safe havens in thingty markets will get hit any time the 10-year rises as much as it did today. we're not getting more defensive than we were we came into this position for a not so great year for the stock markets. it was worse than we expected but not getting more defensive we're not looking to bottom feed and try to time the bottom at this point we think there's more bad news to come. >> josh, it's only been a few weeks since they said cash is trash. now people will hear cash is king what is the role of cash in a portfolio now? what is the decent level >> i think cash plays the same role in a portfolio as fixed incomes. specifically short term treasury bonds. the role they play is balanced they are two things, number one, they keep the volatility from becoming overwhelming when you look at your statement or log into your account and just glamgs at the balance. in markets like this, they tend to move opposite of what stocks are doing.

maybe not every hour number two, they give you the ability to do what your guest is suggesting with which is rebalance from what has gone up and add to what has gone down. and my suggestion, i would add to that, is to do so systemically if you're one of the people that say to, you know, you know, the dow at 23,000. i got news for you if, in fact, we get there, and conceivable, the news ain't going to be better if anything, things will look scarier and you'll be even less likely to make that decision to pull the trigger god knows what is happening there. so automate that decision. your rebalances should be on a predestined schedule so should your allocations money moving from your bank directly into what account you're investing through that's the way to get through this not sitting there and trying to define what the perfect opportunity is to buy.

at that perfect moment, things will look bad in the headlines. >> was there a headline, mike, that was the fundamental reason the market took this fall today? >> no. i don't think so. >> a lot of people have been sending the reuters story that the white house told federal health a education to classify -- >> yeah. >> according to sources. i know -- i just wonder how much -- >> yeah. >> i think it didn't help, obviously. i think it's the ongoingness of this information deficit that we have right now it's also been a slow motion panic. i say slow motion. it's been, you know, 20 days or something like that since the top of the market. it's not the way bear markets normally start normally the market tries to sniff out a weakening economic trend and parts run. no it was a break interrupting what was, by all accounts, a pretty

decent reacceleration in the economy. that's why the adjustment has been sudden and oppressive. >> fastest since world war ii. >> yeah. this actually puts donald trump in very, very rare fied territory. he is now the first president in u.s. history to have had two separate bear markets happen from an all-time high within his first term never happened before. this took place in the fourth quarter of '18 and now in the first quarter of '20 it's pretty remarkable amount of volatility for just the two years stretch. >> i love when our viewers and frequent guests weigh in yesterday was the biggest day of mortgage supply since 2008 today likely similar why rates are higher what does that mean? >> yeah.

look, i think there's going to be interruptions and issuance and corporations will have trouble bringing new issues to market certainly in the high yield sector we'll see it's a difficult place to trade and issue new debt. for us, it's an opportunity to' if we can pick out areas of the credit market we think there is opportunities. again, we were in defense. we weren't in energy or ccc, for the most part, so we're looking to pick our spots to try to get back in. the first thing that tends recover is not the equity market it's the credit markets. they lead us out. >> you're not worried about the broader credit >> i mean, i think that, you know, of all mortgage -- it's not itself a negative thing. it's putting a little bit of a strain on a treasury market that had priced itself for, you know, for zero, essentially. i think that's more of a mechanical force. >> we're awaiting the president. he's been meeting with bank

executives in terms of bank action today, another brutal day for the stocks down 5.5% bringing their losses over the last month to 27% so far, there's been a lot of talk, mike -- actually, we have the president. let's go right there. >> i would say the greatest bankers in the world, the most important banks in the world, financial centers, and having a good discussion. we're discussing the economy we're discussing how it relates to jobs and all of the things that are happening right now with the virus that we've become so familiar with i'll be making some decisions. i've made some decisions, actually, today but i'll be making some other ones that are very important and i thought i would let the press in to hear some of the wisdom from the folks in the room and maybe, brian, i'll start with you brian is the chairman and he's the man at bank of america

brian, please. >> thank you, mr. president. thank you for bringing us together the ceos of the large banks here want you to know because of the work done on the capital liquidity and the things as we look forward to uncertainty due to the virus and oil price changes, we're strongly capitalized. we're in great position in terms of liquidity, capital, and strength we're doing what we do best, which is helping our teammates, importantly, but also our clients and our small business customers, our immediate-y medium-sized have access to credit all of us are providing relief to any customer who has an issue of being out of work for the virus. and we would tell you that up until the last couple of weeks the activity has been strong and it's still strong. we're seeing people spend money.

auto lows are growing. mortgage loans are very strong but the real key is we're well capitalized and helped small and medium sized businesses and help our consumer clients weather the storm in case they're directly affected by this. >> thank you, brian. >> it's important to recognize a few things this is not a financial crisis banks and the financial system are in sad shape and we're here to help. and i think second, which we look at what is going on in many ways, we're going in several challenges at the same time. we went through sunday in a precipitous drop in oil prices we needed to deal with that when the market opened on monday. clearly coronavirus is front of mind for everybody not just here in the u.s and i think the market is going

through a market of price discovery and trying to figure out what is the intermediate longer term health of the economy. and i think what we saw is we saw some fears on the back of those and some talk about potential recession on the back of those and i think the market is going through a discovery phase and trying to figure out what earnings are going to look like and where evaluations should be. i think the good news the markets have performed in the orderly way. the infrastructure that supports the markets, i think, is held up through some pretty good tests there's been some strange lulls along the way but i think it held up well it's been orderly. as brian said, from the banking perspective, we're here to help. we want to lend to the small businesses and be supporting our consumer clients. >> thank you very much i think prior to the coronavirus, it was just all go. the numbers werefantastic.

we don't know what the numbers are now. we'll have to see. the numbers from a week ago were great. from two days ago were great and now we're hitting a patch. we'll have to do something with respect to getting this -- getting rid of this virus as quickly and safely as possible number one -- our number one priority is the health of our people of our country. we're making most likely a statement. i'll be making a statement later on tonight as to what i've decided to do and what our country will be doing. charlie, please. >> we are here to help that's what our institutions do. we're all in a position to do it and i think we're being very, very thoughtful about how we can do that for both consumers, small businesses, as well as the companies that we deal with. and i think we're all encouraging any of our customers or clients who are having any issues to make sure they talk to

us we're all developing programs to ensure that as they and the employees and their customers go through this situation that we're there to be a source whether it's to help them issues with their payments with or be there to lend. >> i'm glad you're saying that that's great there may be some of that, frankly, more some than you've been used to for the last three years. >> yeah. >> it could happen david? >> i appreciate this. >> i would echo what has been said the banking system is in good shape. the virus, obviously, poses unique challenges. both for policy bankers and businesses large and small across the company all businesses are focussed on their people take care of their people. they're looking to help businesses large, small, individuals and making the same steps these other institutions have spoken about.

we'll get through this but it requires navigation on the part of us and we'll focus on doing our part. >> we'll be doing a lot of additional works with small businesses, as you know. with be adding many billions of dollars and we'll be making a lot of small business loans. as the banks are, too. do you have anything to say? >> yeah, of course i would like to thank you, mr. president, for being so aggressive and very specific about protecting the health and safety of our employees and i'm encouraged by the leaders in this industry that are thinking along the same lines about their employees. and i would like to point out that sba has the authority currently with $18 billion to provide loans with the support of the lenders in this room. and they also have the opportunity to extend some of the payment terms up to six months so i'm looking forward to

working with every one of them to leave no money on the table on the $18 billion that provides support for small businesses. >> we met with the insurance companies yesterday, the top companies, the top people in the top companies like yourselves, and they were generous you know what they do with copays and everything, they go all out. we appreciated that very much. >> yeah. and prepared to get a handle on, you know, this problem i think one of the issues was that, you know, people have tested more and more there will be a better handle on what we're dealing with just because, you know, there will be some economic effect,

obviously. as this goes on we all focus, in short, but it's going to need to support the banking community. it's going to need the support of the ability to be tested. if we can do that, this has a natural ending, which most people, you know, lose sight of. there will be vaccines developed and that'll take a myriad of the third quarter but there will be other thing >> their making tremendous strides. we'll be announcing that thank you. anybody else have anything to say? anybody? >> i think you've done a fantastic job, mr. president, with putting our country first

i think your focus on fiscal stimulus is really important how do we help american families that live too often paycheck-to-paycheck get through this difficult time where they may lose their job or otherwise face difficult circumstances i think your leadership on the fiscal stimulus isappreciated. and a dratmatically lower rate, which is good for american households we have the opportunity to buy their first house or a new house for their growing families so the markets have worked, as we would hope, in this period of time to help provide stimulus to the entire economy. >> how is jamie doing?

>> well, >> say hello. >> he's making great progress. thank you. thank you very much for asking so the bank has very rigorous resiliency plans both in the united states and around the world all of those are on the way right now. all of our plans have designed, obviously, to protect and help people and i think a fair question is are we still lending and over the course of the last 40 days, at jpmorgan, we extended $26 billion worth of loans to both consumers and small businesses in seattle which, you know, has been a center of the virus and economic growth is still continuing so it slowed down significantly but people are still going to

restaurants, for example we still see that. people are buying food to be delivered by the services. and interestingly, in the data, we see the pull back is much more from the older generation, my age, than the millennial generation the millennial generation spending seems to be holding up very well. >> i think there will be a pent up demand when this is gone. i think everything where it is tamped down now, people are leaving their homes. i think you're going to see a tremendous pent up demand which hopefully won't be in the too distant future. >> we're reaching out to the customers and small businesses waiving fees and making sure we can refinance the loan when possible we're up 79% last year in refie. it will take awhile to find out how much the effect really is. >> thank you thank you very much. anybody else

>> i represent the community of banks across the country rural markets, urban markets, they're substantial doubti -- standing ready and strong to support their communities. whether it's the smallest businesses, the ag communities. >> thank you for convening the group. and i'll echo on something rebecca said, we're helping the 5100 banks across the united states build continuity and resiliency programs so we can keep the banking system open to support our clients that are facing a time of need. that's what banks do stick by their customers that's what all the banks in the united states are doing today. >> great.

>> thank you. >> you heard that the financial systems are starting to echo that. >> yeah. but for those listening -- you've done a fantastic job here we're learning this is a long-term lesson to learn. at the end the united states of america, in my view, is very strong and we need to remind ourselves a part of getting through the time like this is about confidence and supporting each other. and having hope for the future for myself, i believe our best days are ahead >> thank you very much i'll be making a statement tonight probably at 8:00 we'll be starting some additional solutions we made a great decision on china and asia and they're healing and they're healing at a pretty good rate.

i'm happy about that we could start to think about getting back involved in that part of the world. as we know, we have another part of the world, europe, that is in very tough shape having a hard time right now with the virus we'll be making various decisions. you'll be hearing about them at approximately 8:00 tonight. >> we'll be talking about that later. >> mr. president -- >> those things we're making a decision on. >> mr. president, we heard in the past industries that are too big to fail, in your estimation, are the airlines, the cruise lines, the hotel industry too big to fail? >> i think they're going to be great. i think the folks around the table are the ones that finance them they understand and they're great companies but we're having to fix a problem that four weeks ago nobody ever thought would be

a problem. nobody you read about them. you read about them from 1917 and read about them from lots of other times, but nobody thought we would be seeing what we are discussing that. it came out of nowhere and, actually, it came out of china, which is the way it works. but we are going to get the problem solved these are powerful institutions and they're built up and ready to go. i know they'll be helping customers during the short term period we think it will be a short term period. >> the sort of stimulus package or measures? >> i don't know. it's actually a very good question i was going to ask it myself we've been hearing ability the various storms of stimulus and very different forms of stimulus it would be appropriate under the circumstances. >> i think the first thing is that fiscal stimulus in a time

of stress is absolutely the right answer i think anything it gets out to most people. so keeping people who are becoming under employed due to this is supplementing that through unemployment and other things is a key thing. if you keep the american people cash flow to buy goods and do things, the economy will be strong and those individuals will have the people we should take care of no question. and our companies, anybody out to the virus is getting paid for as long as it takes for anybody with high risk we're taking care of that. i would focus, first, on that and in the second major thing is take care of the health care so between testing and building up the hospitals, they can receive and do great work as the medical community and the hospital community can do with the patients is critical so, instead of broad base of people in the hospitals, i think businesses and other things will get through this if we take care of those things,

it will spread quickly. >> if we get rid of the problem quickly and everything solves itself we don't need stimulus it will be good. we are talking about various forms of stimulus. what would you think, michael? >> i think add on to what brian said the support of small businesses is critical. you look at the employment and you look at the importance across our economy and unfortunately right now small business is suffering from both sides. one, there's been disruption in their supply chains in terms of receiving their goods that they need and the other side, there's uncertainty from the demand side in terms of what the future holds. so i think working with the banks in this room and well beyond the sba to be able to put programs in place around fore beerns to be able to potentially up the limits in terms of lending in these programs and, again, i think there are things that have been used before effectively i think we can do it again. >> yeah.

thank you very much. >> we're in a position to to take care of our work force. our workers were part of the company. how do we think about the necessary direct physical support to the individuals in our economy who are at least securing their employment. >> right this is where fiscal accommodation can be powerful. >> anybody >> yeah. i would say that stimulus is appropriate. what you mentioned in form of payroll tax. a holiday or a complete

restructure. it's a regressive tax that can help in the short term and the long-term and provide supports with the 70 plus percent that needs help in savings and stability of livelihood and so if you have the chance, maybe, to do something. democrats a democrats are not in favor for it it would be good for the citizens and the people. and even longer term for the country. so that's a tax that people have long been talking about either cutting or getting rid of entirely steve, what do you have? >> we are interesting in hearing that feedback, particularly in small and medium sized businesses we cataloged for the president all of his executive authorities, which are quite significant. there will be various proposals.

he'll be rolling out quickly on that front and we're working with congress on a bipartisan basis to help small and medium sized businesses, al as well. >> yeah. >> that's cnn. fake news. thank you very much. >> all right. >> that's the president with bank ceos. the president saying he'll be making a statement around 8:00 tonight. we'll see what details he'll bring. in the meantime, umm, will left si side -- he asked brian monahan the best stimulus and he said take care of the health care problem. >> focus on the medical issues, i think were the words, carl as you said. focus on the patients and the hospitals. but it's a rule coming out of the meeting.

tlfsz encouraging tones like from bank of america's brian moynihan saying the economy is still strong banks are well capitalized citi saying it's not a financial crisis also, we want to provide liquidity. even got some specific numbers on liquidity from gordon smith from jpmorgan said they extended $26 billion in loans to consumers and small businesses in the last 40 days. but all of those points are things we can come away with no reason to panic. the banking system is working fine it wasn't a transformational, fresh policy announcement. on that note, there was also -- i don't know if you heard, when he said if we get rid of coronavirus quickly, then we won't need a stimulus. that's not the type of line that leads, of course, stocks to rebound and, of course, headlines are leaking out when the market was open and with that in mind, it's not a surprise that we didn't get a big rally from this meeting

alone. but as you said, carl, another statement due from the president at 8:00 p.m. maybe that's the big policy announcement that markets want to hear from. >> it was also interesting to hear all the banks pat themselves on the back for being well capitalized and lending to small business and medium-sized business i mean, what a change having bankers right now in washington from the last time we were in these kind of markets days during the financial crisis. >> it was two way. i would say they were complimenting the president and the president was calling them the greatest bankers, the best bankers in the world so, again, i just feel that goes wack to a little bit of the tone of more of the same. the same being encouraging, by the way. there's no need to panic but more of the same as opposed to anything really new and transformational of course, markets, at least, maybe not the economy. but markets, at least with the momentum behind them need to

hear something transformational to extend the flow i would report we've seen kelley king of bbt rush out fairly quickly. we'll see if they can catch the others. >> keep us posted. we'll get to ayman jabbers inside that meeting. the president was asked if there will be more travel restrictions he didn't say. he said he'll be talking about new measures tonight at 8:00 p.m. what do we expect? >> that's right. i asked the president in that room if he's going to issue a national disaster declaration, and the president said that's one of the things we'll be talking about and pointed to his 8:00 p.m. statement tonight. he said we have a lot of options on the table you heard steven mnuchin saying we cataloged a lot of president's executive actions, of which there are a lot that will be what the president is making the decision from here so this, seems to me, in the room, very much a president still in listening mode on stimulus ideas

you saw him literallypulling the ceos of what ideas they prefer and recommend he do so it's not clear at all that the president has in his mind as of this hour now exactly what he's going tell the nation at 8:00 p.m it's clear he'll be making a statement. he said at the end within 50 feet of this room. of course, the oval office is within 50 feet of that room. so we do expect this will be an overoffice statement tonight, most likely at 8:00 p.m. very rare for this president to take over prime time air waiv waive -- waves to make a statement. there's an expectations he has some news to make. we'll wait to see what it is whether it's economic or medical or news or both. the president hinted at the end, he said it will be both economic and medical news that he'll be making tonight. >> thank you market, as you know, dow down 1464 for the day. officially closing in bear market territory for the first

time since 2008. s&p not quite there down 140 points mohamed el-erian joins us today. he has repeatedly urged caution, mohamed, for investors for the past several weeks that caution has been warranted. what now >> continued caution for most investors. you know, if you're in relative value in arbitrage, this is a great environment for you. you're a day trader, that's fine if you're a long-term investor looking to put money to work, i would wait it's not just because of the economics, which we know is concerning because of the sudden stops, the supply and demand disruptions and the structure we see. carl, we started to see today more market stress more liquidity stress. yesterday was stress the credit market today cut to the treasury market so be careful out there is what

i tell people. >> where does that go? that stress? i mean, how bad are things looking in places like the treasury market and the credit market >> so bad enough for the new york fed to announce a massive increase in repo so clearly they finally paid attention. they're finally looking at the technical. so enough of that. look, the concern you have is you don't want a feedback loop the economy disrupts the markets, and then market malfunction disrupts the economy. we don't want that second loop because in that second loop kicks in, and i really hope it doesn't, but if it kicks in, it's going to make things a lot harder for policy to act as a circuit breaker. we're looking for policy to act as circuit breakers. >> it's that kind of urgency, though, mohamed, or the lack of it, that is keeping some of these policy proposals on the hill, at least, from getting

bipartisan support thinking of grassley and payroll tax holiday today. how much urgency do you need to get response >> so, i like what i'm hearing in terms of whole of government. that's great i also like that the initial focus is going to be on timely untargeted remember the 50 basis points cut did nothing. it arguably made things worse because general policy responses right now are not going to react to make the economy. they help balance sheet but not reactivate the economy what we need urgently is two things one, more resources to the medical side that's the true circuit breaker for the economy. give people confidence that the virus will be contained and give people confidence. and, secondly, focus on the most vulnerable segments. especially the one with systemic risks. that's where all the phase one should be. and phase two can be more general. and then have the fed look at

market malfunctioning and make sure it does not spread. >> what is the moment for you? what is the news headline for you that you would sound more upbeat and say, okay, maybe now is the time to do some buying? >> for the -- well, let me first talk about the bottoming out of the economy. that matters for most americans. it will be -- to all americans, i should say, it will be when we get signals the virus is contained. how? vaccine development. that does it and i agree with the notion that once we bottom up, we have so much stimulus in the economy that will take off not justice if call and monetary but lower oil prices the markets will turn much earlier and i'm afraid that turning point now is more likely, the technical one. the one we don't like.

in it establishes finally the basis for the bounce back up that's a technical one and the journey there, sara, is an unsettling journey for most people. >> how much of italy's experience, mohamed, is coloring your view of what is heading our way? at least from a public health standpoint >> i think it's italy, whether it's boeing, we can talk about boeing, whether it's seattle, these are all extremes what they've done for the market is given us some sense of what the bad scenario looks like. italy has two issues that scare those of us that talk to the medical professionals. one, that it spreads quickly deaths went up, karl, by 31% today. daily deaths it spreads really quickly. two, it's a demonstration effect to the rest of europe that social distancing, shut down the whole country is a precedent in

europe, which means for economic terms paralyze economic activity t the problem is marks they start pricing it and i think we saw a bit of that today, as well. >> yeah. let's talk about boeing which finished lower by -- it had the worst day. worst day since 1974 one of the bad headlines around boeing, of course, it was the loan what does it tell you about where we are in terms of corporate credit and the economy? >> what it should tell you is boeing had issues coming in and initial conditions were weak and the 737 max issue. and these funding lines -- that's what it should tell you what it actually is telling you, and being interpreted, and i

think the science is so key here, sara one, even boeing is having funding issues what about the other companies and the two, you and i talked about this in the past segments of the credit market are particularly fray guile. the high-yield market is structurally fragile the massive overhang is very large. if the highest market gets disrupted in a major way more than it has so far, that will completely lock up the market for new bond issues. >> yeah. >> those are two messages. >> yeah. we came out of the meeting with president and bank ceos where the message is the structure integrity of the financial system how it's not 2008 it doesn't sound like you necessarily agree with that? >> no. this is not 2008 if you

define -- and it's critical to understand how it payment and settlement system is the oil that makes everything work and in 2008, that got contaminated and the minute that got contaminated, thing came to a halt that's not what we're looking at the banking system is in good shape. the payments and settlements system is in good shape. the problem is risks migrated from banks to nonbanks and took on the form of credit risk, equity risk, and liquidity risk. the nonbanking system has overpromised liquidity to end users. if you ask the banks and settlement system, this is rock solid. and the other difference -- >> go ahead. before we're out of time but i want to ask you what on earth

chris tee is going to do tomorrow. >> i hope she follows the example of bank of -- they gave us a good example to follow, which is not only cut by 50 basis points or cut whatever you can in the case of the ecb, but also have very targeted measures to address the fragilities, in their case, small and medium term enterprise. also, have it in terms of coordination with other fiscal agencies and agencies. the bank of england set a good example for other central banks today. >> mohamed el-erian, thank you for joining us. >> thank you getting some sad but not unsurprising news from the ncaa. we have details on that. hey, eric. >> that's right. >> the upcoming championship events, including division i men's and women's basketball tournament will be played without fans all the games will be played

without fans that's a major update in the world of sports. so the games will go on but the ncaa president just saying that we will have limited family attendance and essential staff those are the only people permitted in the stadiums. that's another domino to fall in the world of sports about not having the big gatherings of people in an event starting in put days next week back to you, karl. >> eric thank you. businesses, governments, and schools around the world are instituting drastic measures to stem the surge of coronavirus. the surge in cloud-based services and systems our next guest is ceo of a company with his employees working remotely and how the customers are coping with the changes. joining us for an exclusive interview is aaron levie nice to see you.

we're in a full on making sure we protect the health and safety our employees as well as making sure we're driving receipt si sill -- resiliency we have a bunch of measures internally things like encouraged work from home that's on a global basis we have a bunch of health measures happening within our offices for anybody that comes in we are all hands on deck making sure our service remains resilient and secure for our customers that are now experiencing this unanticipated surge over cloudcollaboration. that's our focus is helping our 100,000 customers making sure they can smoothly operate in the cloud and work in this much more remote and distributed fashion.

>> we did see record usage last week but right now is, again, we have modded out our growth and have a good sense of the usage patterns we have infrastructure we manage out of multiple data centers and leverage public cloud partners, as well, in a geographically distributed way. right now we feel very confident in this scapability and resilience of the platform we have many customers reach out to us now and say, hey, we're looking for support and help as we rapidly move to the cloud and there's a lot of companies and organizations that are trying to figure out for the first time how do they go fully disrupted and fully remote, which is becoming a brand new phenomena for most organizations now. >> how about new customers i would assume there's been a stair step in the last couple of weeks? >> right now we're pretty

focussed on the existing customer base. we actually announced just yesterday that any enterprise customer with box can increase their usage with no limits for the next 30 days we know there's a lot of unusual usage patterns within their organizations. so we wanted to remove any licensing limits for people that have remote work or need to move it quickly with expanding part of their work force. so we're focussed on our existing customer base we are, you know, certainly hearing from new perspective customers, but as you can imagine, it's hard to light up these initiatives rapidly. so right now we're focussed on making sure our exist customers can expand and move to the cloud and grow their usage in an efficient way. >> it's interesting. i was going to ask you whether you've seen a slow down in corporate spending i mean, all the talk here on wall street is that we're starting to price in with a recession and with that usually comes reduced software spending. so how do you think about that going forward as we start to

weigh the economic impact here >> yeah. that is a little bit trickier. so, you know, certainly i.t. budgets, you know, would be impacted i think there's a category of technology that companies have to increase their usage. if you think about products like zoom or slack. so cloud-based technologies that help you work in a modern way, you know, i would expect that those companies are able to counter balance some of the economic head winds that certainly we would expect to see. but, you know, it's so early to tell what the i.t. budget implications are so hard make any long-term financial statements other than right now what is happening is, you know, nearly every company globally is trying to figure out how do they move to digital platforms, and they're looking for partners to help them do that so, you know, we're, obviously, one of those with nearly 100,000 customers and we want to lean into that as much as possible so

we can be a good partner for our customers now. >> i have to imagine you believe on a macro level we're going to into an episode like this and as tragic as it is, the fact this infrastructure was in place is a mitigation aid itself, right. >>well, i think what is interesting is we classically think of supply chains as sort of how components move through a global ecosystem we haven't yet thought about supply chains as all the knowledge workers and the people we depend on we seeing the ripple effect of the interdependencies that companies have so the cloud is the only way you can enable the continued collaboration, the continued work with your global supply chain and global value chain so this is why we're seeing such a significant increase and usage of product thes like zoom or slack or files being shared.

it's because business still has to keep running. it's just now being run in a zlibted and remotion fashion and the cloud is really the only way to deliver those types of use cases. so some companies are extremely prepared thaichb been running in this way for a number of years a lot of silicon valley companies could move to remote work-based models. unfortunately some companies are having to respond to this in a maybe more rapid fashion as more disruptive to their i.t. environment or traditional work styles you know, hopefully we're through this it would be the number one topic. what is your resiliency plan your business continue newty plan for when your supply chain is disrupted and you have to move to a distributed remote way of working and this is going to have massive implications on our work force, on our technology strategies going forward.

>> they asked for help in combat combatting this. what would you say to the white house? what would you like to see from them and how can you help out? >> yeah. i mean, obviously, consistent information that is accurate is helpful to this company. you can imagine every company is trying to figure out what is the spread of this virus and what can we do to help with our communities and reduce the spread so that information is incredibly helpful and i think best practices coming out of the world health organization and the cdr are important. equally, i think we should look to technology companies or any organization that can help in this situation lean in as much as people need possible to make sure that we can enable this type of continuity we'll do our part, again, for our customers and looking forward to many other partners and technology vendors to do the same with their ecosystems and

hopefully drive a way to get through this. >> aaron, thank you for joinings understand. >> thank you ceo of box don't miss the cnbc special report "markets in turmoil" tonight at 7:00 p.m. eastern we'll go to mike looking at betting market odds of a recession. >> yeah. financial markets are trying to handicap a sudden economic stall or worse economists not really in the camp yet of advising economic forecast to recession mode this is the market implied odds predicted for a recession during president trump's first term those are the terms of this bet. essentially it takes you to january. that's two consecutive quarters of negative gdp and what is interesting about this, it's not just that we're basically near 60 percent there's some gamesmanship here people said we're going to get a technical recession and perhaps because of the business measures but how suddenly it happened you can imagine previous times, if you had a betting market

ahead of recessions. it was probably going to be a little more jagged and gradual it shows you how sudden it was by the way in terms of this bet, also, on the third and finest mate of gdp. nobody

that don't necessarily provide as rich benefits as other companies. alta at new low. ipos hitting all-time lows couple of stocks hit new highs, coronavirus related. quidel which does rapidand, also everbridge that provides security softwares for companies

to manage event risks. certainly for companies, this is is a major event. >> bertha, thank you very much the world health organization contractizing the coronavirus as a pandemic as millions of americans are being advised to work from home. the aflcoi called on the department of labor to issue an emergency standard to protect workers from the coronavirus exposure on the job. and here to discuss it is richard tr 00 nka. welcome back. >> thank you for having me on. >> what specifically are you seeing >> well, first of all, it's a series of things this administration had sort of a mindless, dangerous, deregulation the first thing they did -- there was a workplace standard that was to protect workers from contagious diseases. it was ready to be issued. it would have required employers to have a plan, to educate their members, and provide them with

protective equipment when this administration came in, they scrapped it the second thing they did, president bush created a task force on pandemic diseases president obama built on that. when this president came in, he scrapped that. and then you have o'sha, which is charged with protecting our health and safety that has the fewest number of inspectors and health specialists in history. we spent $24 billion on immigration enforcement last year but only $2 billion on protection of workers. and now he comes with the new standard that actually weakens the protection for workers on the front line and what we're saying is, issue a standard that was -- it's ready to go. issue it temporarily put it back to work so the employer has a plan, two, has to educate the workers, three, has to protect its workers and give them the protective equipment

they need. in addition to that, we also want sick days, emergency sick days added into that and free testing so people are encouraged to take the tests and not run and hide from the test because of economic reasons >>well, on that list, i mean, the white house is talking about paid sick leave. it sounds like that is something they're very much aware of and trying to fix. are you pleased with that, at least? >> well, there's a bill right now that will be voted on in the house that does four important things one, it would issue -- make the temporary standard in place. two, it would provide free testing. three, it would provide for employers to give a sick day fourth, it would help provide food to people at risk and people that were in low-income areas. >> richard, what kind of grade would you give to the large companies rolling out paid leave, if you're quarantined, no penalty if you call in sick because you're worried about the

virus. i'm talking about the walmarts, the starbucks, and steady the m am -- steady the amazons of the world. >> they're behind the curve. they're starting to catch up but the faster the better. i don't want to discourage them. we want to partner with them we've gotten out in front of this we've trained our front line workers so they're protected we gave them equipment they need to be able to protect us and keep us safe and now the cdc just issued guidelines that would weaken the standards and expose our members, the front line workers to this disease. it's unconscionable and it was supported by no evidence so those that are working, we want to partner with you and get it done quickly. those sitting on the sidelines, shame on you you'll pay a larger economic price in the long run for not acting than you would if you acted quickly. >> how about grading the proposals we're hearing out of the house, payroll tax versus thousand dollars for households,

and so forth what would you want to see first? >> well, thepayroll tax isn't going to help much first of all, it would be very, very slow. second of all, if you're unemployed, the payroll tax does nothing for you. it doesn't help you. you don't have any ways. and it would probably help the people high wage earners money is in the pockets of people a direct hit to a household. $1,000 it would be a thing that have an immediate effect and immediate stimulus but you also have to add to that free testing make sure people can get adequate medical care and make sure they get sick days so they don't get dinged when they have to be isolated or take tests and do other things like that. those things need to be combined so you have two levels, carl you have to protect the individual and then you have to look at a macro stimulus program. we're doing both and working with congress to try to get both of thm implemented to protect

individuals, small business people, and businesses richard trumka, thank you. the dow closing into official bear market territory down 20% from recent highs today. will tomorrow bring more pain or relief rally bob has a look at the etf. >> yeah, well, the cash markets closed but the etf business open the spy closed 27436 it was qqq closed at 195 and -- that's not updating there and i want to point out the bond market down again today. agg not just high yield. a corporate and treasury down. somebody selling treasury etf in the last couple of days.

keep an eye on that. the president is speaking at 8:00 we'll see what happens it's oil, coronavirus headlines, and stimulus that moves the market we had no good news on all three fronts absent any good news on those fronts, the market drifts lower. >> some headlines out of the italy now. the prime minister closing all shops except for food and chemists all over the country. >> yeah. that's the big question. exactly how able gus what we're heading for. the market is not necessarily twitched on every one of these headlines this week. it seems as, you know, combined what the president says tonight. bars, hairdressers, think about manhattan and what the impact of something like that would be. >> yeah. and remember restaurants people work on a thin margin

a lot are borrowing money now. they go down 50% for three months, they won't come back it's money lost. even if they come back, you won't go back to your favorite restaurant and eat twice as much. >> right tonight a special report 7:00 p.m. "markets in turmoil" be sure to join us. that does it for "closing bell." "fast money" begins now. >> "fast money" begins right now. it was certainly another brutal day for stock investors dow falling nearly 1,500 points. welcome to "fast money" i'm brian sullivan dow falling, small caps down again. benchmark dow index down from february 12th record high. outside of the one-day plunge of nearly 23% this is fastest slide to 20% down ever ove