good sign. to me it looks like the apocalypse too thanks for coming in >> thanks. >> that does it for the exchange today. thanks so much for tuning. here is tyler with power lunch kelly, thank you very much welcome everybody. we start today on power lunch with the massive market sell off. the fed stepped in to inject 1.5 trillion into the system but virus fears are outweighing that relief for now it's a yo yo kind of day the dow is down about 16% or thereabouts this week.

let that sink in for a moment. 16% just this week we're not even done. president trump announcing a travel ban on all non-u.s. citizens coming in from europe we're awaiting details on a stimulus plan or domestic response to ensure containment mitigation and increased testing capabilities right here in the u.s. we're talking to three ceos today. group one auto, redfin and verizon ceo about how these companies are dealing with the fall out and what the impact of this virus will be on the overall economy. >> let's get right to our reporters covering the story for us rick ismonitoring the action i the bond action. we begin with steve on the phone with the latest on this move by

the fed. it's been about an hour for markets to digest it >> people are still trying to figure it all out here it looks like the federal reserve is going to do a series of masds ifr operations to -- put it this way, it will be a trillion dollars a week in the following ways a half a trillion dollars was done at 1:30 today a half -- that was three months before operation >> half a trillion >> half a trillion 5050 billion three separate operations that will amount to a trillion dollars of new money i think what they tried to do is to just put infinity out there and just make available -- they

are out in ways we haven't seen since 2008 and certain derivative market securities there's more concern and the federal reserve hopes by doing these operations it will provide as much money as is required for the functioning of the market. whether or not it will be enough, i don't know people complain the real problem is the lack of balance sheet out there. you saw that the european central bank did something different today where it reduced reserve requirements in certain areas. it's not doing that yet. may may yet think about that and one other thing in was done as part of a certain power that the fed chairman has to take an operation like this. they say it's done in consultati consultation but not a decision made by the committee.

the new york desk that does these sorts of things. they have been on the phone for several days, i'm told this is the result about those calls in an action taken by the chair with instructions to the new york desk. a very unusual operation and a mass ifr amount >> steve, can i ask you a question and i think you answered it. we have the operations of the fed taking place today and then in two more traun un traunches . what does it snemean >> i think you have it right there. i was on the phone with somebody in the bond market we were trying total all this up we came up with a number of 2.5

trillion which i was afraid to say until you started doing that math right there you could do the math in a lot of different ways. it's an enormous amount of money. it's saying if you need to do this operation of repoing security because it will be enough out there for you on offer from the federal reserve, i don't know if it's the problem because you had, words like the guest that kelly just had on was extraordinary. we talked about panic in the bond market and some of the things i'm hearing is the differentials between the futures market is as wide as ever we'll have to wait and see that was a problem it doesn't solve any of the

overlying problems we'll leave it there i'm sure we will be talking to you throughout the rest of the day. >> i don't think i've seen the s&p move 6% in less than 5 minutes. here is the fed announcement you can go many, many years without seeing that. some stocks went positive. johnson and johnson market was down about 6%. straight up, it went positive. you can see we're drifting lower here the trend is still intact. that's the global take down of

the market it doesn't really matter here. where is the bottom. my old friend calling in recuperating from an auto accident sends his best wishes to every one. there's the december 24th, 2018 low. that number is 23.51 that's an important number we're only about 200 points away from that. we did that today. that interestingly is a 30% decline from high to low why is that interesting? that's your typical bear market decline for the s&p. 30% in the great final crisis. by the way, a lot of people say we weren't impressed with president trump's speech last night. we weren't impressed with the congress today not getting its act together you see the stock 600 closing at

the lows for the day bond buying, market wanted a lot more even from europe. back to you. >> all right thank you very much. bob at the nyse. let's move over to the bond market where yields are falling and rick is tracking the action at the cme hi, rick >> hi, tyler steve leisman in your discussion showing there's so much liquidity for the gears. that really doesn't change the fact there's a lot of dynamics that are still hard for the market to wrap their arms around if you look a two year note yields we're creeping bag over that 40 basis point where we were stoic yesterday it's only down eight basis points trading down here seems pretty

orderly. the auction wasn't very pretty for 30-year bonds which seemed the most buoyant and finally foreign exchange what a day look at the dollar index the minute we went unchanged around 97.39, we had a 2.5% drop now we hover back. look at the year to date of the euro versus the dollar that expresses it the best. the euro benefits from that drop in the dollar. it isn't benefitting from the big rally today and yesterday. back to you. >> rick, thanks. the president saying today he's not yet invoking emergency powers in regard to the cry issues but not the senate is cancelling its recess. >> reporter: you heard the president announce that partial travel ban

today he was asked in the oval office whether he's considering any domestic travel bans the president said he didn't think we're there just yet he said he would consider it if needed around some of the hot spots like in new york and in washington state but not there just yet the president was asked if he would declare any kind of national emergency or disaster under the stafford act the president said this in response >> if i need to do something, i'll do it i have the right to do a lot of things that people don't even know about i don't want to say that at some point it may be some of the more minor things at this point. >> reporter: you hear the president there saying some of the more minor things at this point. he's not specifying what he's talking about there but he might invoke pieces of the stafford act. not clear which pieces he's talking about.

this is a president who doesn't want to over react to this crisis he's taken some heat for that. he's being consistent today here in suggesting he might do some of the more minor actions but not the broad sweeping action that some people are calling for. >> i'm not and i don't know whether you're familiar with this stafford act. what kinds of powers or emergency abilities does he have under that >> reporter: the main thing is it would free up about $40 billion worth of federal disaster funds immediately it would put the fema folks in the fight effectively right now. the president's talked a lot about having the states do this rather than the federal government but fema has a role to play here fema does a lot of things like disaster recovery, debris removal that won't be needed here there is an unemployment piece of fema though that could be something that might be key here if a lot of workers aren't able to get to the office and take a financial hit. >> thank you very much

all three of the mayor indexes sinking deeper into bare market territory. the head liep on the wall street journal this morning, the dow's long bull market is over the major averages down 25% from their highs with no end in sight to the selling let's bring in larry adam. let me get your reaction to what fed is doing since you follow rates. what do you think of what they did? will it have the desired affects? >> it's try to fix the marx function issue >> the worst has been since 2008 the problem is we're supposed to be the boring market efb is happiest when we're dull. when you start to see drama many the treasury market it spooks people and you get this cascade effect unfortunately, we don't think

the feds buying will fix the underlying issues and off the run treasuries here. >> what are the underlying issues >> there's three steps to this story. their response has been i want to hold more cash. i buy a futures contract that gives me the same risk and then i keep my cash you have this massive hedge fund position where they are short this treasury futures, long these off the run treasuries

they will provide a backstop and allow the hedge funds to work their way out of position. >> the bigger position beyond the short term liquidity issues is the fact the federal reserve will be cutting rates to zero. yield will go negative i don't know how far out you want to take it. they will be talking about buying a whole lot more from here >> i think today was step one we'll be waiting to see if we get step two next week again, just to push back a bit on negative rates, it's a lot harder to do in the u.s. we have a $3.7 trillion money fund industry whose business model gets severely strained at rates. >> let me be clear i don't mean taking the feds fund rate negative they don't have to take the funds negative for the rest of the curve to go negative >> they will try to keep repo rate negative.

when losing money by holding a position, it's hard to stay there too long >> fair enough what would you say to people who talk openly about the ten-year treasury maybe five basis point, maybe zero what do you think is truly feasible at this point >> we think it's going to head to half a percent, get down to 50 basis points and peter out there, we do think we'll see the fed will pull out all the stops. we think they will head close to zero we think they will provide guys say they're not going to tighten rates for year and a half, two years. we think we'll see qe. they will unveil everything.

>> it would seem it's almost impossible to put in floor until there's similarity on this epidemic peaking and until we learn something more about corporate profits. >> there's going to be a lot of volatility you can get a gauge of where earnings will be i actually think you're entering place where you're seeing some good opportunities for the

conne equity market. i think the market is pricing in a 15% decline this year. that doesn't happen. i think the market is over reacting >> is your estimate, is that contemporaneous? is that right up to today or what >> it is we began the year north of 170 we brought it down to 167. we may have some modest adjustments from there i don't think you're going to see -- we do scenario analysis and 150 is where we think is the worst case for this year >> michael, let me turn back to negative yields and harass you about it for another question or two. if the fed is going to be doing,

they will start buying bonds as part of qe, they are willing to pay any price. why wouldn't i be comfortable for the next little while that longer dated treasuries could have negative yields >> we were running on a trillion and a quarter financing need for this year. you will have more demand but you'll have more supply too >> that's doing nothing to dampen we should be issuing way more debt because there's huge appetite for u.s. treasuries

>> gentlemen, we appreciate it thanks >> thank you president trump's travel ban has sent the travel stocks plummeting today it's one of the big reasons the markets are down cruise ships getting crushed all of these three names are 70, 80% down from their 52-week highs. the airlines are also tumbling united and southwest are down more than 15% now. united is down 18% and hotels are deep in the red. like at wyndam down 9% hyatt down 13% let's bring in priceline founder. what do we do about coronavirus? >> we recognize it's anew reality in the market.

when you cancel the big ten tourn m aament and the nba, peo say this is the real thing you can argue about what's real or not with the virus but you can't argue with everything, schools closing. a new reality is what you're seeing pricing in the market and in the travel world. people don't do voluntary activities when they are afraid. what the travel sector is trying to do is slow down the spread. they are worried about the health care system they they are trying to flatten a different curve. you deal with the yield curve. on the u.s. government, they're talking about the health curve

they are trying to flatten and push the curve out so the hospitals don't get overwhelmed. that's a smart strategy for the united states. tough for travel >> i honestly wonder if we shouldn't declare a two-week national holiday you can interpret that however you need toyoit to be interpretd it doesn't take us to the way of italy yet but it's a chance to take a breather and let the hospitals catch up >> you have people who live paycheck to paycheck you take a two-week holiday, hold ho are they paying their food you're talk about food and rent check. some of us can take a holiday but there's tens of millions who couldn't >> the reason we're talk about this and seeing this in the market is this is happening already. >> it is we're going to ease into it. we're going to have any worse problems over reacting is not a winning strategy you look at fed and the u.s. government, look what hhs is doing. they are doing the right stuff they are figuring out how to flatten this curve and they are

figuring out how not to panic people but the markets look at the curve globally and say, wow, look at these number of cases. this is not a drill. it's real. >> you raise the issue and i've talked to a cup ol poochl ouplen the hospital business the past couple of weeks and they are very, very freaked out >> we have 300,000 empty beds in america. that's it. that's all we have >> we have something like 100,000 res practipirators that's not enough. >> so far we haven't said we should be taking additional steps. what additional steps would be prun prudent to make sure we don't overwhelm them >> we're con frofronting new reality. don't go to crowded places

we're not having an nba. we're not having the march madness. those are real steps those spread virus if we moderate the large crowds, if we moderate carefully but we don't shut it off, we slow this thing down maybe we'll get lucky and the warm weather will slow it down for the winter maybe we won't we're doing the right things to slow it. we can make sure our low income people who might be cleaning at the hospital, don't come in if they don't feel well if we can give them paycheck that's the smart move. hhs and others are working on it >> we got to get them in there appreciate it. >> we really appreciate it we have some breaking news out of new york city let's go to julia. what's happening >> kelly, new york will ban

gatherings of more than 500 people that's including broadway shows. they will be restricting smaller gatherings the ban will begin at 5:00 p.m. tonight for broadway theaters with a capacity of more than 500 and will go into effect for other venues starting friday at 5:00 p.m the governor tweeted they are taking new actions to reduce the density of people across the state. starting tomorrow night, gatherings with 500 people or more will not be permitted in new york state kelly, back over to you. >> we appreciate it. thanks all right. verizon announcing a short time ago it will accelerate network investment and capital spending by as much as a billion dollars. so many people starting to work from home and stresses on the system from government and

public safety agencies verizon is spending more to up grate i upgrade its systems. welcome. good to have you with us >> thank you >> obviously, as more people work at home, in whatever the business may be, there's going to be a need for more connectivity as more people spend time at home and maybe do their shopping online or spend time watching netflix and so forth i can imagine the stresses on a network like yours amplify a little bit what can you tell and how can you reassure people that your company is ready for whatever stresses could come? >> first of all, so far we have not seen any measurable increases on our data in the networks we are monitoring that every day.

i think all in all so far we haven't seen any major or measurable impacts on our data growth but we're monitoring it 24/7 because patterns can change and we need to be prepared for that in order to deliver this critical infrastructure in times like this. >> you're obviously in the middle of a 5g roll out nationwide i just got a 5g phone. network is trying to catch up with that. you must be spending a tremendous amount of time thinking about these network issues but also yourwork force how many of your time and your company's bandwidth is being devoted to this virus daisaster planning >> first priority is health and safety of our employees and

customers. we spend a lolt of time on that. this is an emergency operation center that we have akrotsz the country. all information comes in and we have one way to communicate. that's very important. we spend a lot of time on that we also spend a lot of time to follow the network to see what happens in network so far i'm really pleased with how the network is performing and has been in the major crisis who ve seen the last decades and always off to that standard. we can have people working with business, working our employees and working with society

>> i want to make sure people understand the significance of having you on with this announcement too at a time when we're talking about companies cutting capital spending and taking other drastic measures, you're inkreetsing your capital guidance range you might need to add workers. you tell me but the bottom line is this is economic activity shifting from travel onto, let's call it the invisible infrastructure can you guarantee that your rails are going to be ready to handle no matter the increase, the surge in traffic you'll be dealt with the next couple of months >> we have a very strong network and we continue to be lit and add infrastructure on top of it. giving support for all the customers. consumers, government, enterprises, small and medium

enterprises. that's very important for us all in all, we feel really good about where we are in the network and we're monitoring every day 24/7 to see if they are changing in the network. we packed in changes we need to change network as well it's a bit slow moving in that so far we haven't seen anything. we also think in these times it's important to show the market and the country there are people investing as well because there's need in the country right now. i think that verizon feel a huge responsible for that and we're doing it >> i want to come back to your work force are you encouraging the people who can work from home to work from home? have you taken those kinds of steps and there are a lot of people who can't work from home. the men and women installing things have you put any crimps into the system where installers aren't going into people's homes, for example? >> you're right.

a lot of us that need to be in field and meet customers and doing things we are supporting them every day to be safe and healthy we take all precautions the see those workplaces are safe and we'll continue to do so. whatever decision comes from federal government or regional governments, we will follow but it's important for us to see the networks are up because that's so critical in times like this that's the balance we're working. we'll continue to do so. >> thank you very much thank you. >> thank you we have more breaking news now the small business administration out with a statement about how it's dealing with the impact from coronavirus. kate rogers has more >> the sba is out with a statement on how it will be azi

assisting small businesses who are in need during the covid-19 outbreak they will be providing targeted, low interest daisisaster loans. they will coordinate with governors to submit requests for economic disaster loan assistance the loans are up to $2 million will be available to small businesses and private, non-profit organizations that will help alleviate any economic injuries that are due to the virus. the loans can be used to pay fix debts. payrolls and accounts payables opinion t the interest rate will be 2.75%. back over to you >> we're getting fast and furious moves trying to deal with coronavirus

>> oil prices, lower well off the lows of the session. wti has been as low as $30.02. you can see it's settling down about 4% as low as 9% earlier now closer to 6.65%. the story continues to be a bit of a double whammy for crews prices are getting crushed from the supply and demand. there's already too much supply. there are concerns about coronavirus sloeg economwing ec growth and trump's travel ban could slow it even further kelly, back to you thanks the the dow jones is down nearly 2,000 points today this with a wave of events being cancelled, including broadway shows. reallykicking into high gear last night and today as the

virus continues to spread in the u.s. we'll have more on that in a t moment let's get the news here. >> worldwide, cases are topping 127,800 with more than 4700 deaths italy reporting more than 12,000 cases and iran more than 10,000. in the u.s., case exsedding 1300 in 44 states and 38 patients with the virus have died experts say without wider spread testing, we don't know the true numbers here the nih dr. anthony fauci when asked about testing giving a pretty blunt assessment. >> it is failing the idea of anybody getting it easily the way people in other countries are doing it, we're not set up for that. do i think we should be? yes, but we're not >> the cdc saying it and public health labs have tested more than 11,000 specimens. that doesn't mean 11,000 people have been tested because for

each person, multiple samples are tested drive through testing stargt at a few places aroundthe country including here we are showing kaiser permanente here >> free widespread access. fast moving developments across the world the nba suspending its season after a player tested positive the five power conferences of the ncaa, the acc, big 12, pac-12 have cancelled tournaments. the mls and nhl have suspended their seasons. the pga is keeping its event but

going without fans just moments ago, we heard that duke has pulled out of the ncaa tournament where does the sports world go from here? let's bring in from the athletic and stadium. he was the first to break the news last night. it's fwragreat to have you. are all the players still quarantined in that stadium? >> no, they are not. the utah jazz, as of this morning, receive ed their tests. as are reported, 1 of 58 administered tests returned positive as of now the plan was to charter a home back to salt lake city today on thursday >> are they going to be leased back to their homes? do you know where they are keeping them how do the players come up with over 50 coronavirus tests when the rest of the country can

barely get their hands on one? >> to answer your question, to players stayed at a hotel overnight. they got a hotel really late at night. able to stay there got their test results back and will now return home the players, the 57 players personnel official that tested negative for coronavirus, they will all likely be tested again in the coming days just to make sure that those test results stand and as far as the second question, what was it again? >> how are they getting the tests in the first place >> the nba has increased level of urgency as far as making sure the players are taken care of. oklahoma city health officials took over. it wasn't the nba at that point. oklahoma city officials wanted to make sure before the players entered hotel rooms, before they entered airplanes over next 24 hours they were taken care of and tested as well as media

there. >> what have you been hearing about the reaction of players to the idea the nba season was suspended? >> there's a shock verall. it's going be grand, there's a lot of of things that go into play one of their players are going to test positive it happened last night there's still a sense of shock and surprise i still think players are trying to become educated about this. as i've done some reporting last night, rudy has opinion strong he's been feeling fine he's quarantined right now he will remain quarantined for the foreseeable future as will donovan mitchell now

donov donovan mitchell wasn't even experiencing flu-like symptoms there aren't any symptoms he's feeling. they are catching them early and making sure they can contain it moving forward >> thank you so much for joining us now to sue for a news update >> here's what's happening at this hour. we have more now on the extraordinary measures being taken in new york state. new york's governor announcing state is gabanning gatherings o 500 people are more. they are skl aur former nurses and doctor to be on call to back up existing health care workers that may become sick the state is reaching out to all the state's medical schools in the event more health care workers are needed hospitals, nursing home and mass transit are exempt from the new bans on gatherings the prime minister is outlining new measures in the fight against the coronavirus. it's now battle to delay the

spread and minimize the suffering. >> this is the worst public health crisis for a generation some people compare it to seasonal flu that is not right. this disease is more dangerous and it's going to spread further. >> you are up to date. that's the news update this hour back to you. we want to get a check on two big industries and how they are fairing as coronavirus grips wall street and the global economy. on autos we have the ceo of group one automotive it's good to have you here today. are people shying away from dealer lots? >> no. thus far there hasn't been much noticeable in our dealerships in either the u.s. or the uk.

clearly, consumer confidence is going to get hit by this investment market. >> what do you do for your employees and address business interruption risk because as you probably have noticed we have plans in place for different people to be in different locations in case anyone gets shut down. what about group one >> we have been several weeks into this and we had a three-week jump in the uk because they are a bit ahead of us we are focused on our employees and customers. thus far there's been no significant disruption we're following the direction from the health authorities. >> do you have plans for that? i imagine someone should show up for work tomorrow. when we find out that person in that office tests positive, what do you do? what's the back up plan? >> we have quite a few contingency plans in place we had an associate come down with the virus in the uk but they had just returned from italy where diagnosed and never

came into the dealership we are monitoring every dealership and every employee every day. >> really important question for the housing market because when yields first started plunging, this looked like it could be a net positive now you have some talk of open houses being cancelled or people not showing up having to do that kind of thing. what's the reality impact so far? >> in a place like seattle, the reality impact has been significant. we're having a banner year very strong demand, very low inventory. there's still reasonably strong demand but it's taken a hit and especially in seattle, san francisco, boston and now new york we're expecting that to spread across the rest of the country as people realize just what a serious health crisis we may be facing >> glen are you in an undisclosed location >> i'm in seattle. >> what is it like on the streets of seattle is it eerie. >> it's little eerie i think the real impact is in the small business, the

restaurant and ice cream shops have almost no business. they don't know what to do with their employees. it will be a real issue for every community. i would tell anyone if you have an office where a large number of people are congregating, you should not wait for a coronavirus outbreak you should close the office and have people work from home by the time there's an outbreak, it will be too late. it's a really basic thing. >> i think that's good advice. i want to get your reaction to that you say you're not seeing a fall off in foot traffic. i assume you have plans throughout your system in case you do get unlucky and have a coronavirus effect one of your associates tell us how much of your time is spent these days on this topic >> most of it. most of it we serve customers so we need to be out in the service departments and in the dealerships. obviously, every one is very

aware now of the good practices and staying away from each other, washing hands our job is to service customers. that's what we'll continue to do our best to do >> i want to talk a moment about what you said in terms of all large offices should send their workers home not all offices can. car dealerships might be a good example. tv networks might be a good example. every one who can do that will i was at the pediatrician's office this morning, they can't work from home and they also have to be concerned about their exposure here. is there larger response that you think would help everybody better keep this from spreading further. is a larger response warranted

>> i'm not a public health official but we have gone through this before other cities have and at some point if you're running a large office where people can work from home, you just calculate i'm either going to do it today or i'm going to do it a weak later the difference in those five or seven days is fewer people will infect each other. i think it's a matter of time before people who have the option to work at home are told to work at home. there's still a few people in the redfin office but not having 500 people in that office really makes a difference i think employees appreciate this emphasis on public health we'll find way to keep selling houses, carcars, to keep doing things if we can help the folk who works in offices stay safe, that helps maintain continuity of operations that's good employee relations >> how long do you think this

will last? what are you readying for? >> i don't know. i don't know it's going to last a month time, months >> earl, are you thinking about a time frame or horizon as to how long this may be a part of your business? i think you said earlier you have not seen a fall off in foot traffic or fall off in transitions but you're readying for that because you do believe consumer confidence is going to take a hit, if it hasn't already started to show up >> we have learned a long time ago to just be nimble and responsiv responsive we're all listening to the public health authorities and we're just going to react to the market and try to keep our employees and customers safe it'll end when it ends >> that's as good a answer as any, i think >> glen, because you also are in the middle of the housing market, can you tell us what you see happening regionally in terms of people looking at

houses, still expressing the interest but trying to do more virtually. are people going to start shying away from open houses and slow the one sector that could lead us through this. >> i think the market is response ifr to interest rates that's been the driving factor now folks are starting to worry about the stock market drop because homes havegotten expensive to the point you need to stel stocks ell stocks the be we're seeing bidding wars and crowded open houses. i'm not sure we will see crowded open houses this week but that's what we saw last weekend just as many consumers see this as an opportunity to get on the market because it's been such a h hard time buying a house for so many people that you have folks waiting in the wings to buy. we're concerned about demand we have seen a slow down in demand for seattle first we expect it to come elsewhere

there's been an excess of demand one final point, i would recommend a 3-d camera to scan your home. there's technologies that we have available, that other brokers have available to create that experience online redfin is offering video tours for people to look at other listings that haven't been scanned. the industry should be prepared for this this virtual reality has been coming for a long time >> just curious. there's going be a lot of technological solutions to this. thanks >> thank you >> we appreciate you coming on today. let's sgo back togo back to a qk we're near the lows of the

session. the lows were down 2200 and 20 points it's down more than 25% from the highs which means at the close today, all three will have officially entered a bear market the dow is down 27%. how do these compare to past sell offs. chris, what do you divine? >> no one knows right but we have to go back to history and put this in some type of context. if you consider the move over the last three week, the velocity and magnitude of that move down about 25% over a three week period is really analogous to three other times in history. 1987 where the, let's call it about three week move was upwards of 30% down. 2001, after 9/11 where that move was about 25% down and then the fall of 2008 where the move was

24, 25% down over a three-week stretch. what we have seen over the last three weeks is historic here in terms of velocity and magnitude. what's important is while every one of these observations was driven by a different story, the reaction to the market was similar. you get to a point where there's enough fear and enough stress where you do get some relief i suspect that's in front of nus the not too distant future >> i feel better with you zooming out on the stock chart like that. puts it into perspective call ratios are looked atas a tell for the market. what are you seeing there? >> what it tells us about a motion and behavior and stress, i think calls are appropriate place to star. this is a two week average we're up in the 99th percentile. these are the types of

conditions that present themselves sward ttoward the en those moves. we saw this around the december 18 lows. we saw it in '87 we saw it in 2008. the stress from the call numbers are starting to become ver maybe they're up for the wrong reasons, but still wharks do you think about when you look at yields >> a. >> reporter: curious observation if we pull u up a chart just comparing s&p over the last several days obviously lower. bond yields have actually stabilized and gone up so bonds have been sold. yields up as stocks have gone down there's a departure from what the last couple of weeks have looked like here so what we've divine from that, you get to the end of these correction phases, the capitulate phase means

everything gets sold what the market perceives to be these defensive havens aren't that safe. i look at the move in the bond market, the move in gold, as a reflection you're probably getting closer to that phase here >> all right, krohn chris, thank you, sir, appreciate thanks >> today's plunge reaching historic levels with nine of 11 sectors down more than 20% from their two week closing highs our u next guest is looking for areas to buy here. port fofolio manager of clear bridge large cap growth fund as jim cramer's auch want often say, there's a bull market somewhere. where? >> yeah, look, i think right w now, there are kind of two buckets of ys that we think are interesting. first, health care should be defensive. it's held up better than the market so far. and i would expect that to continue in addition, with the recent

elections, you u see that the chances for broad health care reform are probably lower now than they were a month, two months ago that's good for health care stocks because it's been a been wroefr hang for those stocks >> really basically, you're saying this is code for sand er and medicare for all u being taken off the table. >> low eer probablility. that's one area. i guess the other area that we're looking at is companies where there's a specific catalyst for the company verizon's chairman and ceo was on here talking about how they're pulling forward investment in a 5g qualcomm is the ben fash yar of that so things like that where you know you think oh, there's a specific catalyst that might help me play better. >> these aredefensive choices. health care is widely regarded as defensive, but it can be a growth area, too >> telecom >> some of both. i think health care to your point, can be really defensive unh is going to be kind of

defensive. qualcomm trades a lot of semis so kind of offensivoffensive. >> you have disney on here go back a couple of month, no one could find a bad thing to say b about it now the it's down 30% from the highs. >> we still own it i want to see a little more of what the cost is of closing the theme parks and to the filmed entertainment business it's probably half of their e ebitda there are a will the of companies that are going to have risks. a lot of companies, but it's -- >> how much more attention are you paying to corporate balance sheets today than you were two weeks ago, four weeks ago? >> definitely more most large cap companies have good balance sheets so it's probably less than an issue for large cap companies, but what we're thinking about is okay, what's 2020 look like? can they survive what happens if we have a recession. >> on recession, is it a

question of if is it really a question of if? >> depends on your time frame. next five years. sx >> i'm talking about over the next five minutes. i cannot believe having been out and around this week, the absence of human beings on the streets of manhattan, in restaurants, in shopping areas i cannot imagine that we are not going to have negative gdp growth this quarter and next >> definitely for a quarter but i think you have to take a step back and think about all the monetary stimulus we've seen and the fiscal stimulus we're about to see it's fascinating to think it was only a month and a half ago that we were looking at virus disruption as a buying opportunity and now price war equals major problem but there's a lot of stimulus getting pumped into the market. we're trying to think about good businesses where you want to be invested long-term things with a driver to them

like 5g, but make sure if we're wrong, we have the balance sheet. >> down about 1900 points on the dow right now as we get ready to make the turn into that often climactic last hour of trading for the day. down another 8% toda 'lbeig bk after this you'll work with an advisory, on a flexible wealth plan. and with new brokerage accounts, your cash is automatically invested at a rate that's at least 20 times more than other advisory firms. personalized advice. unmatched value. at fidelity, you can have both. unmatched value. ♪ yes i'm stuck in the middle with you, ♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's the most open and secure public cloud for business. it can manage all your apps and data from anywhere. so it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. without getting in your way. ♪ ♪

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not a lot of places to hide today. restaurant stocks are under big pressure >> they've been selling off some of the casual dining chains like dine brands. backyadard b b, parent of o live garden really seeing the steepest drops in the restaurant sector today we're hearing from manl brands like starbucks saying in some location, drive through may be the only option. the giant also extending catastrophe pay. mcdonald's stepping up cleaning and announcing it will pay workers at is corporate stories who have to quarantine for 14 days due to the virus. so far, analysts are saying as of february and march, traffic's not falling off with the exception of some casual chains

particularly in the pacific northwest. but data from black box shows that shifts in traffic have indicated that as concerns grow, guests are going to favor quicker or off premise dining to casual dining. chipoltle saying it's offering free delivery through the end of march which is a smart move because the pizza players are typically where people go for delivery >> thanks very much. let's take a look at the markets if you don't mind. and draw your attention to how far the market has fallen not just today, 8.5%, so far as we turn the corner into the final hour of trade, all 11 u sectors lower and we are now something like what was it 27%. >> you can see it there in the one month chart, the entire decline has come in just the past month >> to the day. a month and we've come down that far. 27%. i remember asking a couple of weeks ago if the bull market was over and most of the people on this set said no, it's not

yes, it is >> p and just another one, almost just more of a, environmental, rome's catholic churches are ordered close unprecedented. like you said, freaky how it's happening. ten year yield, 85 basis points. >> closing bell starts now you don't want to miss it. >> welcome to the closing bell, everyone welcome to the closing bell, everyone here on the floor of the new york stock exchange, another massive sell off on our hands. i'm at the delta post, down 17%. travel stocks continue to be in the eye of the storm, but everything is selling off today. the s&p 500 down 8% as we stand just in today's session, down 16%. just this week we have every single angle covered for you as we enter the final hour of trade. >> and i'm contessa brew er man for sara today let's take a