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 look at what is

going on the president announces a travel ban but the lack in detail and large scale coordination is rattling the markets on the legislative side, there's little agreement on how u to move forward on any relief and just this afternoon, the fed announced a massive injection of liquidity into the market. it briefly shocked stocks higher but now we've drifted back down towards the lows o the day a number of big interviews this afternoon. jack lew on the economic response cme's ceo, terror ki duffey on ty and ben is the former ceo of sprint currently sits on board of jet blue he'll join us to discuss the pain that's being felt in the travel sector, and zoe, does it hurt we are all over this massive market sell off. charlie from ariel investments

is with us for the hoyer hour. meg is tracking all the new details on this coronavirus outbreak and elan is in washington with the latest on the house stimulus vote. first, the new york fed just announcing that massive liquidity injection. cnbc's senior economics reporter steve liesman joins us on the news gls line. explain why this matters now >> what's happening was the bond market certain parts were seizing up there was a terrible dislocation between the spreads. there were securities that could not move then it's not a good thing to be happening in the world's largest bond market supposed to be the most liquid market doesn't even matter what the number is. just think of it as infinitily quid thety as much as you want to borrow over a certain period of time, that's what the fed is going to do if you lock at the things it did today, just before the 30 year off, first of all came in and

said you know stuff we've been buying short-term, $60 billion, we're going to spread that out now over a range of securities so some securities couldn't find buyers off the run 30s, tens. the fed is now going to be a buyer. it's going to do a series of $500 billion operations in the one month and in the three month area here so there will be like a trillion dollar s a week for liquidity and it's going to do this through april 13th. talked to a lot of people now. the fed needs to come in and do more, but as an initial step what was described as the panic in the market in the treasury markets, this looks like it may have some positive effects >> steve, great stuff. stick with us. we're going to discuss it further, but first, to bob pisani on the floor of the new

york stock exchange. what does this liquidity injenkins i injection do >> it was worth 6% for 15 minutes then back around take a look at the s&p 500 we were at 250 at 12:50. then to 2660 it did that in 15 minutes and as you can see drifting back down we are back to where we were just about the time of fed's announcement here. dow stocks we've been emphasizing the global takedown u. said that many times in the last week, but if you look at apple, coke, mcdonald's, home depot, we're talking about 7, 8% downside doesn't matter what sector it's not about growth versus anything else. it's just about a global takedown the market's not completely undifferentiated i've been putting out the poster child. dow 8. one-third u.s. x one-third asia. big chemicals use the manufacturing. there you see in the last month

or so down 50% with the s&p down 25 that's the orange line finally, here's something you're not going to see ever. how about new highs on the nyse. sorry, there's the bond. see bond selling off for the last several days. that's continuing today. big outflows from bond etfs. i want to mention new highs and lows two new highs on the nyse. 2307 new lows on the new york stock exchange and folks, there's only about 2800 securities that trade down at the nys erie. >> i want to add what the repea action from the fed does to the markets. i spoke to the head of trading at one of the top two or three u.s. investment banks today. this does drastically clear up the short-term question over ly quid ty in the market and shows less tone deafness for one of key policymakers to what's happening in the market but congress and treasury need to

follow up and build on this. clearly, this action doesn't address the root cause of the crisis nor other asset classes outside of treasuries and mentioned things like it doesn't change the bargain for a boeing or american airlines or occidental petroleum to name a few. importantly, it did say different from christine lagarde, the ecb president, her per press conference did come across as tone deaf mike, as it relates to the market moves though, as bob said, a 6% swing in the s&p 500 on the news, how significant is it that we are approaching the lows again of the session though as we approach the clothe close? >> it's very significant in that there's this oppressive selling pressure it's a heedless, headlong lick wii documentation. you can see the intraday rally is is just a reflex to a headline that says the fed has new liquidity operations it's understandable.

that being said, we've got county to this level hung around there. it shows you that it's now very indes krim nat and it's just people backing away from the idea of equity risks because of this opaque outlook they're faced with >> steve, just wanted to come to you and reflect on what we've seen from various other central banks and whether the things have come. i mean comparing things to the u.k. yesterday, there was a sense of coordination between the bank of england and the u.k. treasury department. i guess a key difference here in the u.s. b p even though we have this operation today is there isn't that same level of coordination >> no, not at this point they need to cooperate i think the cooperation is needed is going to be the size to get -- sounds like we want

the fed to do here is to do what it can while waiting for the fiscal side. kind of underscores why everybody locks to the fed first because it can quickly impact this action. it was taken under a certain clause that the fed chairman has to come in and do something like this only in consultation he was able to do it on his own. and members in staff in washington and new york. so for the fiscal side, meanwhile, the fed looks like it's doing what it can and meanwhile, we were watching the stand off happening in washington, d.c. as the house democrats try to put forward some kind of stimulus bill, a

relief bill. the president doesn't like it. the republicans say they don't worth it the thing the fed can't do with this liquidity operation, this repo operation, it can't make people go out to a restaurant u. do more shopping online. so at this point, how should reasons be thinking about what's in store for them tomorrow, next week, next month >> i think we're going to need to see good news and we can see good news. in other countries, problems have crested faster than we thought in china and south korea. so it is possible for us to get bad news, but frankly, the bad news has been comeing, faster than we thought. >> even in asia, we saw the markets close down 4%, down 3.5% even if the bad news on coronavirus has crested and i'm not the especially deemologist here, but even if that's happened, they're st still suffering.

>> we've had in the face of this bad news, we had the russians and saudis come together and take down the price of oil by 35%, which none of it needed i think the dpood news is that this is unlike other situations like the great recession where you could really worry about the future of the great american banking system i think we can see the other side of this and how to get to there. we just need to avoid disasters in the meantime. that's why the fed addedly quidty today was important to help us avoid banks going under. >> i would add to that and agree that i think what this does today is makes it even more clear, i think it was clear already if you listen to what the banks have said, this is not a financial crisis we don't have the banks about to face liquidity issues or get forced into them for some artificial reason, but we have clearly a potential corporate crisis certain sectors, certain companies and that will need a bit more action to secure market sentiment to think the government's going to come in if

necessary. all the banks are going to come in, but just to elaborate more, you can give the banks all of the liquidity in the world essentially that's what they've been given today, but are they going to extend a fresh loan to a new company that might be going fast if they already have long standing relationships unless they know that the government is there to back them up >> that's why you have to go industry by industry and figure out who at this point a bank wouldn't want to lend to on a long-term basis. that's why it's not helpful to have the oil industry where it is today and that's why there could be some companies that don't have a long-term future with $32 oil but most of the companies with stocks that are way down, sorry to be always looking to the bright side, are going b to be fine once we get to the other side, but there's certain sectors that may be adjusted forever. >> thanks to bob and steve for joining that discussion coming up, the cme closing its trading floors to prevent the spread of the coronavirus.

we'll talk to the ceo, terry du duffy. such a great slew of guests coming up. breaking news on the live events industry julia has the details. >> the largest live events coming together to create a task force that collectively recommends that large scale ooechts through the end of march being postponed. includes the ceo of live nation, of aeg, the ceos of the talent agencies caa, wme, paradigm, all these companies coming together to address the risks around live events in a statement, the task force saying they feel fortunate to have the flexibility to reschedule and look forward to connecting with fans in the future what they are saying b about small scale events, they'll follow guidance set by local government officials live nation shares are off 19% on this news that large scale

events already postponeded through the end of march back to you. we want to get to mike now for today's market dashboard >> contessa, thanks. it's going take a broader look at this crash of 2020. you can call it a slow motion crash or a very rapid drop into bear market. this is a five yoor chart. so this market has not obeyed so to speak, the levels or the conditions that you would have expected it to in having something more of a sustain bableable bounce to this point been pointing out very washed out conditions of the kind you formally have proceeding some kind of rally. there was another level in here we sliced right through today. i'm going to vaguely draw it there. in the 2640s sh it was the 200 week moving average. that was the level we were at there at the bottom in december of 2018. people said you know what, we bottomed this in 2018. maybe that has significance. zero gapped right through it this morning.

now the level we reached in december of 2018 is is about 2350 as a low. spent little time under 2500. here's a small cap russell 2000. it's an indes krim nat picture here and takes you back to 2013 we first reached these level they're credit sensitive not as strong financially. these are the kind of surveying the wreckage type charts here and yes, they are at a point where even if you only get less bad news, they should get some relief unless we have this mechanical selling just spiral from here. >> it's fascinating lookinging at those numbers and the chart when you look at a five-year chart looks pronounced, but we haven't tested the 2016 low here in the u.s., 2018 low, sorry one sector might have done on the 2016 level, which is energy. just want to point out in europe, the euro stocks 50 has comfortly broken five years worth of gains, the foots 100 is

2012 levels. the scale elsewhere is even bigger >> that's the thing. we had a lot more of a premium built up >> so i don't know if this is positive or negative, but it's worth pointing out gains since 2012 for u.k. pension funds have been wiped out. >> basically, the s&p going back to october of 2017 in term of the s&p level is so that's really two and a half year, not as dramatic. now to the latest on the virus itself, which has now infected more than 127,000 people worldwide and more than 1,300 here in the united states. meg has the latest for us back at hq. >> hey, well, while measures mounting in the u.s. to flattening the curve slowing the spread of the virus so it doesn't overwhelm the health care system new york's governor just announcing he's banning gathers

of more than 500 people including broadway shows that follows moves in san francisco and washington state as cases in the u.s. exceed 1300 dr. anthony fauci referred to as america's doctor, testifying this morning that the u.s.' inability to make tests is quote a failing. this as testing capacity is exb up and down, but access is still spotty health care providers are frustrated and thebds we don't have a handle on the breadth of the epidemic here in this country and they say that's needed along with stronger measures to isolate cases and to try to slow the numbers down that as in numbers rise around the globe with italy's cases ricing overnight to more than 15,000 its death toll now exceeding 1 thou1,000. >> the pace of increase of deaths and cases in italy is still picking up is that right? >> yes, it is. i mean it kind of goes up and down ef day, but the numbers

increasing numerically, it's pretty scary that 2600 jump we saw in cases, deaths exceeding 1,000 now it seems as if the health care system is getting overwhelmeded. heal hello care workers themselves at at risk and it's pretty scary to watch. >> thanks for that it's also worth pointing out the italian situation is tragic and depressing to look at, there are positive cases to point to like south korea where the number of new cases per day has d dramatically fallen now for about 11 to 12 days and again shows the light of the end of the tunnel >> i think what's happening is you have a lot of investors who are looking at what happened with that spike in china and where did it start plateauing and where is it starting to recede and hoping that they can apply that same timeline here. i'm not sure that can happen just because we're dealing with it in such a dichbt way than china did. but at any rate, we'll take

whatever good news we can get on that front we saw more monetary action today. still awaiting a fiscal response from congress. we're following these details on capitol hill where's the hold up on moving forward. >> well, as you said, we'll take the good news where we can find it and here's one piece of good news is that the line of communication between democrats and republicans in the white house is still open. nancy pelosi had her fourth phone call of the day with steven mnuchin at 2:30 p.m so just under an hour ago. some of those sticking points that republicans have brought up today that you mentioned include the structure of paid sick leave. language surrounding the hyde amendment which will prohibit federal funding for borgss as well as the size for federal match for medicaid reimbursement. mcmcconnell has canceled recess

for next week and told a couple who were staking them out off the senate floor, we'll take a look at nilg anything the house sends to us u. nancy pelosi has been adamant they'll vote on this today, but still no word on when. back to you. >> as always, thank you so much for that we've got breaking news. more fallout from the coronavirus in the u.s. in the sporting sphere. >> major league baseball announcing they are suspending the rest of spring training and that the league will postpone the start of the season opening day was set to kick off in just couple of weeks and mlb saying it will delay opening day by at least two weeks so that puts us at least a month from now until we're going to see any professional baseball here in america again. that joins so many of these other sports leagues >> thanks so much. we should point out, 41 minutes

after the session, the dow is down 2,041 8.6% starting tomorrow, the end of business, the cme group will close its chicago trading floor. all products will continue to trade electronically join iing us now in a first on cnbc interview, terry duffy, great to see you >> thank you >> i want to come to that decision and the implications in a moment, but firstly, what is your reaction to the fed's repo announcement today and do you think that's a game changer for markets? it seemed like it for the initial market reaction, but clearly, we're testing the lows again. >> yeah i think it's a piece of the puzzle i was on your show on monday and i was crying from the highest mountain we need to get test kits out there because the

market hates uncertainty and that's what we've seen since monday is uncertainty so we're sitting here today i'm hopeful this is a piece of the puzzle, but your other guests are talk iing about you know sploes talking to secretary mnuchin. she should be meeting with president trump in front of world coming to a solution for the american public. not meeting behind closed doors. the politicking of this disease is unbelievable. i've never seen anything like it that is adding to the volatility of the overall marketplace the tweets, the arguing between who gets what, they should be putting doctors in the room with politicians coming up with a solution that would help aid the american public and take the politic iking out of it if you get the test kits into the american public's hands, we can then maybe see some of the trajectory that you are reporting on that's going on in south korea then potentially, you could build a base in the

market when we have these massive moves up and down, we had the upmove of 1200 points the other kday, everybody was saying okay, we did it you need to build a base first in order to build a base, you need cooperation from the government some of the things jim cramer was say iing this morning those are the things we immediate to do. not just create cash for the overnight repo market in the three month durations. put all these pieces in place. make it transparent. do it. create a foundation and i truly believe that's going to help stabilize not obl the market, but will benefit the people that are involved in this god forsaken disease and i think one of the other things you're seeing, one other thing, look at the price of gold today. historically, it's a safe haven. now you could say there's margin selling to facilitate other positions but it's going contrary to the over all market so we're starting to see safe

havens going the other way gold's now almost 4% maybe they believe this is a piece of the puzzle that could help the bottom come in. >> in the absence of a a coordinated federal response and the way that we saw after 9/11, terry, you say that that's what should happen. it's not is there a role here for corporations to play municipalities are banning the large gatherings sports leagues a banning audiences and decide iing to ca off their seasons. can we see that coordinated response from private citizens >> i think we should and i think we are seeing it my kids school has been canceled wilfred mentioned at the top, we have decided to close down our trading floors we want to abide by what the medical professionals are telling us

not what the politicians are politicking on we think that's what's important. we want to make sure we take people out of harm's way and help be a part of solving the problem, not politicking the problem. >> on that note, terry, who gave you the guidance where did you get it from in order for you to as a leader, go ahead and make that decision and the fallout question is can you still continue to trade as you do normally? >> i'll answer the second part first. yes. we have a small percent of businesses on the trading floor. that can easily migrate to the electronic platform. roughly 90% of our businesses is already on the electronic platform today every trade can be replicated on the electronic platform so there is no strategies you will not be able to execute tomorrow that you can't today. so i think that's very important. so on the guidance, i had just a

gut feeling to be honest with you and i was concerned that the communications were not going well as i said on your show monday. i was concerned. so i met with my team. sat down with them we walkeded through the pros and cons and made a very calculated decision not just because of what the world health organization said it was because of some of the people we know in the medical profession that we believe in. we want to make sure we're doing to right things to protect the trade ers at the cme and throughout the world >> terry duffey, always a pleasure thanks so much for joining us. >> thanks, wilfred just want to come to you for a market question. if a piece of the puzzle is now in place, are you buying stogs >> yes, we are always trying to buy when others sell and be greedy when others are fearful we have been adding to some of our favorite names the financials have gotten

really beaten up there are some ministries, i won't name them, where we're a little less confident. we think the negative effects might last longer but some of our favorite names well because i don't want to add to the negativity. frankly if we were selling, we wouldn't want to tell you. there are i would say the alternative asset manager stocks that we loved so much have been hit hard despite the fact their money is locked for ten years and will have a chance to buy things at great prices today bank of oklahoma, which has some exposure to the energy industry but is going to be fine. even madison square garden is down because of the cancellation of games they're going to be playing. the knicks are going to be playing, i promise you so there are things that are absolutely temporary and things that are more permanently

impaired >> that sounds more like a threat than the performance. >> you'd be surprised what the knicks are worth >> i know they are zpl speaking of industries that have been hit hard airline stocks are getting slammed again following president trump's announcement to suspend travel from europe for 30 days. that's coupled with reports of a jet blue passenger testing positive for coronavirus in there has. florida >> well this european travel ban putting greater pressure on th travel industry that's been hit hard you were mentioning the airlines take a look at where they're trading. united, delta, american air all generate about 11% or many of their revenue from the atlantic. fitch in the last hour saying the coronavirus is likely to pressure the credit quality of the global airlines. liquidity concerns have also been injected swinto this conversation separately, take a look at the hotel operators that rely on the

european traveler. marriott, hyatt and hilton which drew on its credit line. it comes as new data shows that coronavirus is having an impact on u.s. hotel occupancy, which fell 7% last week compared to the same period a year ago analysts forecasting it will contin drop as more events are canceled all into the cruise lines. carnival suspending all princess cruises for the next two months. accounts for about 20% of carnival's ebitda. a dramatic decline another 20% just today, which has put increased focused on the debt to equity ratios for these cruise line operators. norwegian, specifically, which had the debt to equity ratio of 200% and for royal and carnival, can they continue to sustain their dividend of around 6%. back to you. >> thank you for that and i wanted also to talk about casinos on this travel front and these have been the names we

don't talk about that much here, but i'm talking about stocks like eldorado, now down 38%. see sahrs is down 20%. there is some question b about whether that happens, they said the financing is lined up. that they have the funding commitments, but they were made before this current environment. red rock resorts is a very las vegas based. it's got probably 20 or so casinos and gaming facilities in las vegas. it's down 25% today then there's penn, which has the most faci facilities coast to coast for gaming it's down 22% today and i want to show you the one-year chart of penn. it made a lot of news when it came out u and partnered with bar stool sports there's a lot of optimism over what's going to happen with penn and sports gambleing.

add this massive run up. up almost 90% then this down as it's starting to get hit this is really a concern that all of the consume r eer demands going to disapate. that people just won't feel like they have the money to go out and spend not just on gamble in, but on dinner, the shows and other things that they can do with these casinos >> i'd like to emphasize it's the leverage in these companies that's scary when we talk b about why we love black stone and krkkr they as entities don't have leverage, where the casinos have always been leveraged >> airlines, too, have leverage. >> absolutely not. >> the ultimate value of the stock, which you are one mr. buflt loves these. why is he buying them? >> he said the best thing to happen if orville and will burr shot out of the sky. he's hated this industry for a long time. he's felt there was enough

consolidation they wouldn't cut each other's throat. we've learned these companies can go under and we would put these on the list of names that we're not sure are going to be fine on the other side >> in terms of the airlines, norwegian air, not the cruise line, is really in the eye of the storm. down 80% year to date. they cut 4,000 flights today and laid off half their staff so that's a european airline to keep an eye on in the days ahead. >> just one more thing the ceo of mgh resorts told me after a they announced the tale, part of what they were doing is that they wanted to pay down the leverage down 1x >> unfortunately a lot of the industry didn't do that. >> so coming up, we're going to talk to former spirit ceo about how airlines are working to keep

passengers safe and the massive financial fallout. >> we have 28 minutes left of the session. here are the key things driving the action the president announced a european travel ban. the lack of detail and large scale coordination grappled markets today. on the legislative side, there's little agreement on how to move forward on a relief or stimulus package then just this afternoon, the fed announce d a massive injection of liquidity into the market which briefly shocked stocks higher but we drifted back down to the lows. with 28 minutes left, we're down over 2,000 points. >> as you can see the dow falling 2200 points. it's down 2,111 as we head into the close. let's bring in ned faber, the chief investment officer at camera bria, michael, the founder and ceo of destination wealth management. i'm sure michael, you're probably feeling a lot of phone calls from a lot of clients who want to know should i just get

out? if this is going to plum et down, should i get down and preserve what i haven't lost >> fortunately, we're not getting a lot of calls we're warning clients this is what the world is going to look like my short answer is to your question is i don't think it's time to get out. i think you're in the market you're look iing at a three to five year time frame, this horrible situation is going to pass in the next two, three months and you've got to be very, very careful that you don't react too emotionally to these type of w news events and these of market swings because it can go the other way just as fast >> we sold off quite a lot talk to us about where that puts valuations of the broader index? >> very well said. don't in emotional, but everyone knew coming into 2020 the u.s. stock market was expensive wasn't crazy like 1999 but long-term pe ratio of around 32. that's declined quickly. we're sitting around 25 right

now, so still expensive. but not terrible during the low inflationary times, it's around 21, 22, which is still 15% from here in the long-term average going back to the 1800s, was down around 17, which is about 30% from here. so you could have further downside, but the question is how much worse can it get? as you know, valuations don't always stop at the average on the upside, they went way higher and could easily go back to the global financial crisis low, the low teens, which would be 50% so you've got to pair for all those scenarios just like you could prepare the market could romp back to all time highs. the most likely scenario is further downside, but after a lot of the karn gajewski, a good news is foreign eck wii theties look a lot better. foreign development is much cheaper. emerging, the cheapest of f the cheap, you got a bunch of countries trade iing in mid sin digit pe ratios. at some point, that's going to

be a generation alibiing opportunity. >> should mention those numbers were cyclicly adjusted ratios if they're different from what you hear us talk about michael, my question to you, you came on with us a couple of weeks ago, march 3rd you said you were buying mastercard and disney on the dips how do you think about those purchases now? do you regret having made them given that we've fallen further from there >> well, i think first of all, we were necessarily buying them on that day. these were positions that we own. but i think these are good brand names that are going to do well long-term. if you welcome at what's happening with disney, disney's at 90. what's it going to do when the parks close in maybe go to 80. here's the question. if you have $100 and you put $90 of that inside a disney stock, what's it going to look like in five years that's what you have to look at. i know it's easy to sort of

second guess holding anything for the last two week, let alone anything travel relateded, but again, you have to try to look past this as best you can and ask yourself what would you be doing if you had cash and if the answer is you'd be buying some of names that are cheap right now or have gone down 30, 40, 50%, you got to look at that can't just look about what the downside has been lately >> meb when you're talking about how do you position if you have another 50% downside here, what does that mean >> we talk about an p investment and how to hedge it. the first best way to haenlg risk not to take it in the first place so own less. the second one would be to other asset classes, foreign stocks, real estate sometimes, commodities, gold, sometimes bonds usually hedge. the next step would be to say tilt towards value that hasn't helped this year trend falling being another one. >> on the bond front, you say

they usually hedge are they not now >> they've an awesome this year, but if you look at the worst months in the s&p in history, they're not guaranteed then you can get into tail risk. that's almost universally guaranteed to do well in the bad times the way we express it as we pare government bonds a lot of the other assets we've seen, gold today is a great example. usually hedges, but not always and something like a tail risk after the ten year run we've had, monster bull market, first decade ever without a recession, high sentiment, seems like a prudent thing to do and to the extent we don't know if there is more downside. could be something that could really help a lot of people survive and at least see something green when the times are bad.

>> thank you for joining us. >> great to be here. >> thank you we've got 22 minutes left of the session at the moment we are down 8.4% on the s&p 500 let's get up to mike for the market dashboard >> yeah, you don't usually see such dramatic charts when we're talking about efts that track various segments of the loan and bond market. so high yield loans. this is here in white. then you have that's investment grade corporates there in orange that's obviously significant amounts of stress. there's a lot of cracks showing up in the traded debt markets then big, corporate loans. a lot of these things having a big step back from investors that have really ridden these groups for a while it's one of the reasons the fed was probably concerned about these liquidity air pockets we're seeing in the market obviously without being able to handicap exactly how long many companies would be going on much

reduced revenues this brings a lot more corporate debt into the troublesome pile it's not saying the market is absolutely correct here and we're at the end of the credit cycle and we're going to run in reverse and it's going to be a lot of bankruptcies and that sort of thing. when the volatility index is above 70 and you're seeing moves like this in the credit market, it shows you the capital market stress itself is feeding that on itself and it's not just about gee, i wonder if this is going to be b a three, six or nine month slowdown right now >> so, mike, we're spending all this time monitoring the minute by minute markets for equities how do we monitor the credit market >>. >> these are the end investor experience in how they trend you can look at the index of credit default it dials us back to the financial crisis the fed oos been strictly

mechanical >> just wanted to come back to you. we're seeing, we're near session lows you talked about the stocks you like and you have been buying. what do you say to someone who hasn't got cash in their portfolio at the moment? should they sell some bonds to make use of these opportunities? >> so if you have a portfolio with a lot of ten year bonds, i would say sure, sell those, absolutely a because i still think we have a bubble in longer term bonds. we've seen that back up. now they're at 90 so a lot of people have lost money already but we think 30 year bond treasuries, ten year treasuries should be sold going to cash if you're afraid of the market or use some of that money to buy some clearly oversold stocks. >> we have last chance trade coming up. he'll tell you the specific stock you should be buying today amid this massive sell a off

comeing up, dan niles will join us his mashlgt strategy amid the volatility and if any names are starting to look attractive to him. 19 minutes left of the session here's a check on the closing bell big board energy, the worst performing sector today again. could have said that every day pretty much for the last month or so. there's a look at some to have biggest laggards in the energy sector the likes of marathon oil down an enormous 27% adding to lots of recent declines all of those declines, more than 15%. the energy sector itself on the s&p 500 is down 12.2%. the s&p itself down 7.8% with 18 minutes left >> all right, so charlie, what is your last chance trade. >> this one is going to be different. this is progressive. this is a business i like a lot. it's one of the few industries that will have good results over the next three or four months.

as there's less drying ie indry accidents go down and the inverse of the margin is going to be lower for progressive. it's a stock that's held up well but only at ten times earnings it's a growing industry. going to continue to be a growing industry >> it's down 15% over one month. you compare to that like all-state is down 30% over that same period. all state has a lot of exposure to auto insurance. what do you like about the auto insurance and progressive that it's come ppetitors >> so again, like state farm that i'm on the board of, progressive is focused on the retail as opposed to the commercial, which is going to be more of a challenge. you're goung to have corporations going ankrupt but progress i is really focused on the individual auto and home market, which is growing progressive's business has grown more than 10% per year >> insurers really feeling the

pressure from all sides. not just the increased claims because of coronavirus but also this rate environment which has been a problem and the insurers had gone for some higher yield investments equities and look what the equity market has done >> not a problem at progressive. >> all right here we go we have 18 minutes left. 17 minutes left in the trading day. now in the closing bell market zone commercial free coverage of all the action going on into the close. >> let's kick things off with the broader markets. we are down at the moment. 8.2% on the s&p 500. just over 2,000 points on the dow. the who of the session is 2255 mike, is it a concern to see us really get down from the peek of the session? >> i don't know if it's an incremental concern, but it fits in with the broader character of

this market which has been sell first, sell constantly and sell in an undisciplined way. the information deficit we're facing here when it come to the fundamentals is making itself felt here. if you want to look at the extremes in the short-term in terms of how washed out the market has lookeded, you have to go back to the 2008 period i don't think 220 counts anymore. what that means is people in a wholesale way are backing off the markets. did it slow down kind of. we sort of hung around this 25000 level of the s&p is that significant? i don't know because it has not been fruitful to extrapolate any day's action to what's happening the next day in this last two or three week period. >> let's bring in tom. you have called for people to buy that we would do a bounce.

would you do that today after two mass i days of declines that puts the s&p down about 17% this week >> it's been tough because you know, this is a market as you guys are saying, it's not about price discovery. the market trying to price in an increasing amount of unknowns because of corona and oil. i think our calls were too early about trying to buy this dip because because you know, it's been as michael said relentless. we've now had seven days where 90% of the volume in the s&p is down i think on monday, it was down 99% of the volume and today is probably 100%. but it doesn't mean the market won't find its footing

the reason we're going to find footing is number one, over the last ten days, 75% of all trading volume has been done it's worse than what happened in 2008 so we've really created a type of liquidation and with a speed that has basically broken everything so i think markets can pick winners and losers and that's what i think would make a lot of sense and that's what investors should start to do >> when you're looking at the timing of this and try iing to figure out how the marketing might react to the news headlines, why, tom, are you looking at the financial crisis of 2007, 2008, where fundamen l fundamentals were at play as opposed to something like 9/11 that was this abrupt, very emotional, very scary event that sent investors fleeing >> i think both have a place i think the reason makes sense is that there's a second narrative here where there's

stress developing in the financial markets. that's why we've had so much fed intervention that's was the case in 2011. the difference is that we don't really know how well containment will work. i think it's quite good that the public is growing about coronavirus because the social distances will help limit the spread then limit the economic impact i think the difference between both and the fda commissioner scott gottlieb said it this morning, it's not likely we're talking about this in nine months the case, sort of the contour of this is really measured in weeks. that's important to remember as well because that will help markets sort of recalibrate against fundamentals >> thanks for that

appreciate you joining us today. breaking news from capitol hill. what have you learned? >> lawmakers are making progress in reaching a compromise on the coronavirus bill a democratic aide tells me they are moving closer to a deal but there are still some outstanding items. meanwhile, a republican source tells me, quote, i think we are getting there and nbc is citing an administration official who says that they are close, but not done yet now one encouraging sign is that the head of the rules committee, mcgovern, was seen leaving nancy pelosi's office so if you're reading the tea leaves here, that could be a sign this house democrats are finally ready to bring this bill to the floor of course we will keep monitoring the situation but for now, there appears to be b progress on reaching a deal on this bill. guys >> a boo zoo kai or piecemeal step by sfep >> i think with the parameters of this deal are still small

compared to what investors want to see this is not a trillion dollar stimulus package it's about a targeted relief to workers that have been impacted. perhaps scaling back some of the provisions around paid sick leave as well as the amount of money that workers, that states can get for medicaid reimbursement. we'll see what the details of this are, but certainly, i think the both sides would say they would like to come back once they assess a larger amount of economic damage and perhaps are have to take more aggressive action >> thank you for the reporting there. we'll wait for another word coming from you that it's moving forward. back to meg at headquarters now for the latest on coronavirus. >> hey, contessa well the numbers continue to rise both here and abroad and as they do, so does the urgency for treatment. the nearest potential medicine may be gilead's which is in

clinical trials in china, the u.s. and elsewhere results are expected by next month. in addition, a generic drug is being looked at in china and around the world and sun trust pointing out that even as we wait for data, prescriptions spiked suggesting it may be getting used or stockpiled already. back to you. >> and meg, when it comes to new cases in china, we're hearing a lot of optimism that perhaps that's going to be the beginning of the end of coronavirus for china. what are the authorities saying? >> they're saying they believe they're over the pique of the cases there. china only reporting 15 new cases today. that's a remarkable decline since the beginning of february but of course along with that comes skepticism is that the real picture and as china goes back to work and restrictions are lifted, will we

see the epidemic rise again and some of those folks are going into china so they're seeing import ed cases as well oh, that's interest ld charlie. >> you hear a lot of people skeptical about the chinese numbers. the due diligence we've done is that the operations in china are ramping back up. people are coming back to work we have some companies that have supply coming in from china and they're saying their suppliers were shut down and are operating almost back at full capacity that gives us confidence that tipg things are getting better >> nine minutes left down now only 7.5% on the s&p 500 dow is now down less than 2,000 points the beaten down airline stocks though getting slammed again following president trump's announcement of a 30-day suspension of travel from europe along with news of a passenger who tested positive.

what's the latest we're hearing from the airlines? zpl they're facing a lot of treshl -- it's a very sweeping, harsh measure. i think some of the european airlines and european officials were caught flat footed with it. this is a big part of their business transatlantic flights can be profitable you're not going to be allowed to have europeans who have been in the zone to come to the u.s 30 days. >> what are you hearing about some of those european airlines and how much u pressure they're under.

>> we saw norwegian, the budget airline, perhaps we have friends that have flown it in recent years. all those routes laying off about half of its employees, slashing thousands of flights. around 4,000 is what we heard and we need to see what's going on in the coming months because what airlines do, now people are thinking about spring and summer flights. summer is when they make a lot of money they need to generate that cash so they can get through the winter season. with these travel restrictions that came in, pretty unprecedented. these airlines are not going to be able to generate that cash so there's a question of survival we had a warning from iota, the international transport association and trade group warning we could see bankruptcies and other stress on airlines furthered by this travel restriction >> leslie, thank you so much foo

that front housing stocks are getting hit hard on pace for its worst day since the housing crisis diana oleic has more in washington diana. >> yeah, several things weighing on the builders today. the home construction etf off about 11% on day off by about 40% from its 52-week high mortgage rates fell last week but are moving up again as lenders try to deal with this onslaugt of refinance demand in addition, bank of america downgraded saying while they're still bullish on housing, quote, we would be remiss to assume no impact on in market demand b of a is also tempering its forecast for repair and remodeling back fo you guys >> so what do they think, that people are going to get scared d by the markets and not go tout and shop for homes the way they were planning to. >> absolutely. we're seeing people stop having open houses. we're having real estate agents

report much less buyer traffic buying a home is probably your single largest investment and you see the stock market doing what it's doing now, the effect of the virus, you're not going to want to step in there and make that enormous purchase. so again, also the home builders, they were looking for a lot of demand this coming spring because of the shortage of existing homes for sale now they're contending with not only the virus bringing in demand, but potentially hurting their labor force. >> all right diana, thank you look at that >> oil continues do plunge crude on pace for its worse week since 2008 the energy sector has been hit hard in the sell off down some 55% from its 52-week highs. >> this is a place where i think we could get good new us it is not in the saudi's best interest not in putin's best interest to

have $32 oil if the two announce tomorrow a deal of some kind, we could get a spectacular rally in these names. so i actually do think there's some value in quality oriented named. the exxons of the world. apache is a name i own that's been destroyed i think that stock could double on a good announcement out of the middle east. >> the market is hunting for companies with a debt overhang the survivors coudo better! another brutal washout day look at the up versus down volume in highs and lows on the new york stock exchange.

again, you almost never see numbers this lop side id i believe there were only two 52-week highs on the new york stock exchange in more than 2,000. 2300 new lows today and seven new highs. you're not going to get it looking more brutal than this even if it persists longer in this mode. the volatility index, it's above 73 it suggests genuine kind of pain and dislocation and urgent trapped hedging and downside protection being bought. something that you really have to be alert to when it piques, it could be bullish, but this isn't looking like pique at the moment >> i want to point out that on the dow jones industrials, we're down back down 2200 points again so around the lows of the session. once again down 9.3%. the nasdaq is also getting crush ed along with the other major arch average as. let's get to bertha at the nasdaq and what we're seeing there. >> nasdaq getting crush ued.

large caps among the big weights to the downside. but bear in mind that we also had the russell 2000 now down 30% from its high. on a new low today facebook among the 2,000 new lows here on the nasdaq. wiping out about 13 months of gains. but take a look at mike rcro chp the chip sector hit a high one month ago. look tat slide in motorcycle row chip from that day now deep into bear market territory. wiping out 18 months of gains and even the work from home trade isn't working today. zoom had been a bit higher earlier in the day has given up those gains and g logitech hits an 18 mnt low even as people make a run on web c s cams >> thank you so much for that. we have got 90 seconds left of trade. session lows down 2,300 points on the dow

9.7% s&p is down more than 9% there's an intraday chart for you of the s&p 500 a 6% intraday bounce we have to continue to slide since that bounce as we said we are at the session lows as we approach the close couple of other points to bring you, the worst performing sector, energy and banks energy down double digit banks close to that level. the best performing sector is health care. it's still down 7% itself yields of course have held up relatively well today though of course still fairly low in the grand scheme of things dollar's been strong up 1%. oil weak, down about 6%. gold also weak that is somewhat of a surprise, down 4.4%. going to bring bob pisani. the dow is now 10% russell's down 11%, s&p down 9.5% what do you say?

>> 9% down the lows o f the day. market moved down and that's telling us this is more than just monetary stimulus we need some kind of fiscal stimulus we had reports here that might be some deal on the coronavirus package from the house rules committee chair but it's not there yet. didn't really lift the mashlgt much u on that >> reports won't matter. we need some kind of serious action at the close here on the floor of the new york stock exchange, the dow is down more than 10% 2,352 points back to you. >> welcome to closing bell wilfred frost joins me now wow u, what a a day. the dow jones industrials ends the day down 10% its worst percentage drop since 1987 worst point drop ever. the s&p 500 also off 9.5%.

the nasdaq ends the day down 9.5% the russell 2000 ends the day down 11.2% coming up, the new york fed announces a massive liquidity injecti injection. we have an interview with jack liu. later, one jet blue passenger testing positive for krohn coronavirus. we talk to the ceo about the airline industry and if it is doing enough to stop the spread. >> joining us to talk about the sell off, director of global macro, to you first. down 10% or so at the session lows. lowest point for the dow since june 2017. we've gone through that level. >> the dow has has ha much more pronounced move to the downside in terms of giving up gains.

the s&p is still a few percent above where it closed in late 2018 but none the less, you basically given up a couple of years, year and a half of two years of premium in the u.s. market and nowhere to hide within the stock market today or without the stock market bonds were down in price gold was down. so that tells you that it was a mass liquidation and a move to catch. now part of it absolutely has to do with the unwind of you play op the correlations. not the whole story. it's the completely foggy economic outlook that is having people step back and it's a tantrum about a lack of a coherent or purr sway sieve policy response. >> we had an attempt from a major player to stop this market slide and yet we've retested the

lows does that make you worried that policymakers can't stop this >> i don't think they can. i think we're going to need really good news and we've had not only no good news, we've had accelerating bad news it's fnot like the market is jus going down for no reason p the coronavirus situation, worse than we expected item going to be a little george babely here and say we're going to get to the other side don't panic, but u we're going to need so see positive reasons for that to happen i think they can come, but we're going to need good news for this market to slow down. >> why wasn't the injection of liquidity from the fed enough to stop the steep lid >> who knows what is happening on every given, any given day. when the fed cut we need a

double response of monetary and fiscal and clearly the market doesn't think there's enough done on the fiscal side even though the fed is ready and willing to do whatever it takes including possibly a 50 to 100 basis point next week back to zero like today, a really smack of capitulation to me we're down 26% from the top. we went get to the preannouncements for the next couple of weeks so there's a lot we don't know and the market's trying to find a bottom here but the cory litz today, gold min s miners bitcoin going down to me, it smacks of fore selling and maybe a selling climax is in the works here and at this

point, the market is priced in at least a 10% earnings decline and four pe point valuation haircut. >> i wooant to come back to the broader market vix up 76. an enormous spike from already high levels after a couple of times over the last week where we thought it was starting to come down again. >> the first input into the volatility, the market's guess on volatility is is how volatile has the market been in the moment it's been as volatile as you'll ever see it frch, it just shows level of agitation within the

capital markets. it's tell iing you something's o right and you have to go back to the '08 situation in terms of the equity market vibration. >> let's bring in dan niles from alpha one u capital partners ton phone now. do you feel like the sell off is overdone >> no. not at all >> on a long-term basis, it's -- i sent out this tweet the market goes down 35 to 50%. so that's the overarching view from a longerterm basis. now from a short-term basis, we went ahead and started covering,

one's down 10% today then another down 15. from a short-term basis, ten year treasury yields are not making new lows. crude oil did undercut the old low. gold is down the dollar is higher the utility sector, that's supposed to be b a source of safety, it was down 10.2% today. that's down more than the -- so there was people getting carried out on stretchers today in the market and that's probably -- we've seen three rallies of 4 to 5% over the last couple of weeks and gone to new lows

that's how you should find it if you're thinking about this from a short-term basis versus a longer term basis. >> charlie, the decline could be as much as 50% >> but we've incured i would argue 25 or 26% of that. >> that's what i keep coming down to is the actual new us and facts. if this turns into a real down u turn u for consumer sentiment, consumers don't buy cars and go to the store and we get a recession then absolutely earnings estimate rs way too high and we'll have to come down so the market will have another tough period i'm sticking with the possibility that we could see this bad news crest in a relatively short period of time and if that happens, so far consumer confidence has not been crushed by this. there's been no upturn we had a very god job number

we are not seeing signs of layoffs yet. we're not sure we're going to have a recession come out of this if we do, i'm still holding out hope we can get to the other side of this in a relatively short period of time >> there was a time going back where it seemed like a long shot fair call where if the s&p gets down to the december lows, that's kind of a close your eyes and buy type level you're dialing back a year and a half to a moment when it did prove to be. there's nothing magic about those levels i do think at a certain point, the pendulum just goes a little bit too far in the short-term. the problem is it's gone down in such a straight line that you can rally literally 10 or 12% from here and you can look at the charten and say there's just a bounce in the downturn that's where you get into a dicesy situation >> where do you stand on apple stock at the moment?

>> well short yesterday at the close. what the good news for apple is that they have balance sheet on february 10th, and then on the 17th, for us after the announcement the good news is that you look at apple, it has a rock solid balance sheet but from an average firm basis, the valuation still near highs why on earth would you buy apple? because a valuation does not discount the list. you think today feel good

enough you look at that and say people are going b to be home and need to entertain themselves. that's what they're going to do and you have a real super cycle in that you haven't had a new gaming system in seven years and you have microsoft and others putting out their last cycle >> when you have u kids whose schools have been shut down for six weeks, you know there's going to be a, yeah. exactly. >> this morning, the university of chicago, their next semester is all online. just got that today. my kids are coming back, they won't be going back. so that's unfortunately my kids

will be play iing a lot more of them i'm sure! yeah, there's supposed b to be an online class, but whether they're on activision. >> just to clarify because contessa had a wry smile, the gaming stocks are not the casinos. not contessa's kwacasinos. >> it was clear. i want to press you on when las vegas stands, but you've made that clear thank you for that well the dow finishing the day down 10% bob pi pan is here at the exchange with a look at some of the biggest movers on the day. bob. >> and again, no place left to hide doesn't matter what kind of sector you're in it's not growth versus value look at walmart. everything centrally down on individual things close iing ate

lows there similar situation down even more than that. on the side there. boeing down 18%. i should note that there's a safe haven that might indicate some are using that and also bonds reachest the larnlest bond, the mix of corporate and treasuries. also down several days these both indicate there may be some forced selling around margin calls finally, new highs back to you.

rick >> yes, i disagredisagree there are advertisements and press releases for margin calls. it's called gold being down. rates being up stocks being drilleded that's the advertisement look at a two day of tens. everybody was nervous about it you look at a two day of 30s they're still up eight basis points why? because by them being up, basically u.s. liquidation going on and when you sigh commodity prices down, then the dollar up so strong, emerging market issues it's not all you can find. back to you. >> as always u, thanks so much for that final thoughts what would you advise clients to go out and buy following this? >> well, so assuming that the monotra always is have a plan.

be in a properly diversified portfolio then once you have that, it's to stick with the plan and obviously these are very scary times the market's down 26%. probably the fastest decline we've ever seen and the next thing you're in the right portfolio, the next trend really is to rebalance because bond yields are way down. stock market is pricing a lot of bad news the average supply in the bear market is 28%. some are much bigger for instance, the 1974 bear market when the fed kept raising rates all throughout a 50% decline so there's a will the of variables here the policy response. there's interest rates valuation. so in this price discovery process, nobody knows when it's going to end technically, the market has a lot of healing to do we need to set up u a momentum low. maybe that was today then we

have to kedeal with the range a retest for the typical long-term investor who is in the right portfolio for that person's life situation, there really isn't that much to do other than at some point rebalance because a 60-40 portfolio can turn into a 50-50 quickly with the kind of moves we're seeing >> charlie, quickly, two or three stocks that people you'd be comfortable with. >> we think kkr. it's 25% cheaper you're getting two and 20 for $5 progressive is going to continue to grow in this market trading at ten times earnings. some bank stocks there >> thank you both so much. great to see you now markets saw u a brief move off u the low's session after the fed announced a range in maturities but is that enough to support the market

jack liu joins us. thank you so much for joining us my first question, a broad question, can a recession be avoided? >> i think we're taking this one day at a time and anyone who e predicts exact hi where this is going or how far is going beyond what we know clearly, we're heading in a dmeg direction in terms of the economy. when it was a problem in other countries, we were seeing simply chain interruptions. we're seeing businesses closing b and it's going to have a demand we knew the direction was a slowing economy. where it's going l we have to see how the health issues are resolve d. to get you ahead of that, we need to make sure we're doing

everything we can to get resources to the health professionals and the providers of services that are going to make the difference as to whether we can control the spread of this virus have the resources to buy food and take care of their families. the action that's happening now and if we have a little bit more time in terms of where the next st steps. >> come to the policy actions you recommend in just a moment if that's okay you were sitting at the pique of the financial crisis did you think there was a 2008 financial crisis field to the market at the moment

>> i think this is very different than the financial crisis if you look at the health of our financial institutions as a result of the actions taken after the financial crisis, our financial institutions are far better capitalized and we have much more visibility into what's going on so there are risk ks on the horizon but this is not at the moment something that looks like a financial crisis that doesn't mean that the market moves are comforting thing. it reflects deep anxiety but it's anxiety b about what's going on in terms of the response to the health crisis and its anxiety that's driven by we don't know how long it is or what the long-term macro economic consequences will be. we know they're negative, but we don't know how far they're going. if we can turn the corner on the health crisis and see where the economy is going, i think you still have the ability to manage this, but we know the time is of the essence. i was very discouric td to hear that the -- went home for the weekend. it would have been a good thing

to take some action to deal with some of the immediate needs on the health side and in terms of the needs of people whose paychecks are not going to be showing up in the next weeks >> what kind of direction do you suggest? >> in the short-term, i think that the two top priorities, number one is health are we giving the health care providers the resources to get the supplies they need so people can be tested, treated, separated from the community and we can control the pred of the virus. resources were made available in the supplemental proep ration. we need to do more we need to spread the local governments, the first respo responders if you look at the community that's shut down, there's going to be a need to provide for the needs of people who can't come and go normally. that's something most state and local governments need support of

if your family is living an hourly wage and they're not getting their hourly wages on a daily basis, there's not a lot of financial reserves in those households they need immediate help in food stamps they need unemployment benefits. they need to get a quick response if we wait on that, it's going to have economic and humanitarian consequences. i tweeted yesterday that house through the leadership of speaker pelosi put a package together i was also pleased to see there were conversation going on last night and through the day today between the speaker of the house and secretary of the treasury to try and work something out the time to get something worked out on those two areas is now. >> this won't be the only time congress has to deal with it but you can't put off those first two steps. as we understand the shape of the economic reaction, we'll know what's needed if we could put some things in

place and we didn't have a long -- it would be better that's not a today issue it should be. >> mr. secretary, in your assessment, do you think we'll get worse before we get the target action that could help things turn around i'm reminded of course of the pique of the financial crisis, the first time the top measures failed to pass and of course that led to short-terms. do you think we're still in that environment that's not quite the political will because there's an election year to get things done in the short-term >> i think if you remember back to 2008, what an unusual moment in a presidential campaign to take a very unpopular -- that was going on in the economy. i think this is a moment where

frankly, the burden is going to fall to congress but we really need to see all parties looking for ways to find reasonable compromises to a grid. you can't get everything done, there are things that everyone should be able to agree on the kinds of things that i picked off, inchuding helping states pay their medicaid bills. without that, they won't have the resources to meet the needs they have. these are things people have agreed on with republican and democratic presidents and congresses so i think the moment is now i don't think we ought to weight until we are in a position where we lost the ten days and could have maybe stopped the spread of this so that it wasn't -- >> the action we saw from the fed today really influences the credit markets here. they're trying make sure that access to credit to liquidity doesn't freeze up. is it time for the fed to take another action to change its strategy we saw the bank of england

is that something the federal reserve should consider. >> the federal reserve has different authority than the bank of england. inning the federal reserve has taken a number actions responding to the macro conditions as they develop but i think those actions are being taken cognizant of the fact that that is going to solve supply problem by stimulating demand so the rate cut from last week isn't going to create a supply of parts that's been cut off and people aren't going to go out and resume norm al activity if there's another monetary policy action fundamentally, we need to turn the corner on the health situation. i actually think some of the things we need to do, the kinds of things that i've described as the immediate response will help a lot of small businesses and families in the interim. i think you know, it is

incumbent on policymakers very carefully -- proposals that would have huge amount of money go to businesses in an untargeted way we've had an enormous tax cut. businesses went into this very strong i think we need to wait an see where the real need is and the kind of thing that some people have been talking about in terms of giving the spa the ability to make interest free hones loans to small businesses, those will be the first to fail. we have to provide not just relief to over leveraged businesses that got into trouble not just because of the virus, but because of their own business it's hard to thread that needed. i thi l i think it's really important that we show that we're e responding to virus caused problems, not to other things. you mentioned how we saw the top

and others it came in an election year. should vice president biden and senator sanders come together and meet with president trump at this time? >> not sure what meeting makes sense. i listen to the president yesterday evening. i listen ed to the senator bide. vice president biden this afternoon. i think it was a striking contrast in terms of presentation we need to reinstall u confidence that we're dealing with this responsibly at the highest levels of government and all the way through. but we haven't seen that over the last few weeks we haven't seen it from the white house and as i say, disturbed me that the senate went home without acting this week we need to see our government come together and do the things that people can agree to do to deal with the immediate problems and start a conversation about some of the longer term measures you know, what format that meeting takes, i can't say

a different environment in washington than i ever experienced. >> mr. secretary, just one final question if we may i get the points you made about helping those people that will need the help most if they're out of work or the companies that are smaller and really feeling the pressure in a targeted way what about targeting some of the bigger companies that are feeling the pressure like a boeing or an occidental petroleum or some of the larger airlines who may well for issues over the last couple of years, taken on too much debt and have some blame to face themselves. should they be baileded out if necessary or this this such an impossible scenario that they're not to blame and the government should stand behind them >> we need to be very careful. just yesterday, i saw that boeing drew down all of the lines of credit that it had available. so it has liquidity for the moment we don't know what each of the

company balance sheets look like i think there's a danger of people looking back and saying to do things that look more like a bailout and it's not coming in a neutral time it's coming after three years of massive tax relief where companies have had the ability to build up cash and do very we well that was an extraordinary situation but i don't think you should start now first things first let's deal with most vulnerable. the immediate health crisis, the small businesses that don't have the aps kamsty to help themselves and let's take a deep breath and see where things are going before we take those steps. >> thank you, sir. >> good to be with you

breaking news now. on march madness eric has those details what are you learning? >> so we're learning march madness has been canceled. saying the division i men and women's championship tournaments, those are done. they are not going to happen and all of the n krrcaa championshin all championships for the winter and spring seasons, those will be canceled. this is big news that was the last shoe to fall they were the last big event that had not yet been canceled as of today, an hour ago, they were still going the play with no fans in the arena but after school like duke and kansas said they were pulling out, this was sort of what we expected was going to happen. so this is a big one a billion dollar a year tv product so they tried to hold out as long as they could but could not because of the impracticalities

they say the impracticality of hosting such events during this academic year. >> thanks so much. earning have come out in the last couple of minutes hey, josh. >> so broad com reporting eps here at 252 versus expectations of 533 revenue clocks in at .86 billion. so misses there on the top and o bottom semiconductor solutions. biggest segment. 4.2 billion. that's lighter than what the street was look,ing for 240e infrastructure software is a bit better as for guidance, q2 looking for 5.7 billion. the street is looking for 5.9 billion in q2. the ceo is interesting comments saying the fundamental semiconductor backdrop has been improving and we did not see any material impact on our businesses due to the coronavirus in our first quarter. however, he goes on to say visibility in our global mashlgts markets is lacking demand is intensifying

guys, back to you. >> thanks so much. big breaking news on disney. julia. >> disney announcing that it is closing its california parks, disney land and diz ney california adventure beginning the morning of march 14th through the end of the month disney saying there have been no cases of covid-19 at disney land resort, but after review iing t governor's executive order, and the best interest of employees and their guests, they are proceeding with the closure of these parks beginning the morning of march 14th. that is saturday morning through the b oend f it have the month they say didny land resort hotels will remain opened until monday to give guests the able ability to make necessary travel arrangements doup town disney, the outdoor mall area will remain open and they'll monitor the situation. they'll be paying their cast members during this time the employees of the parks, and

work with guests who wish to change or cancel their visits and will provide refunds who have hotel bookings during this closure period which is from saturday until the end of march. you u see disney shares down looks like a little bit in afterhours trading back to you. >> thanks for that mike, this has been seen as one of the potential sort of indicators as a potential turn around for the stock. it's not as if we haven't internalized it. people aren't traveling. keeping these parks open, they're going to be paying people. >> another breaking news alert

state of emergency being declared here in new york city the mayor announcing that state of emergency at a press conference that is still taking place at this moment essentially what that is is a trigger that allows the city to ask for federal money so that presumably they use for testing kits for coronavirus and to also purchase protective equipment to be used for health care professionals. over the weekend, the state of new york's governor also declared a state of emergency. de blasio saying at this press conference that's taking place right now, that venues like -- we got a lot of information over the course of the day and a lot changed then we also learned today that

gatherings larger than 500 have been banned. so saying that this is a rapidly developing situation taking leave of some other cities, banning large gatherings and declaring a state of emergency for new york allowing them to tap into federal money to purchase u more kits for health care professionals >> and also we heard from the new york police department they're keeping mass transit up and running and there's been a lot of details on how they're keeping it >> and they're hoping to keep it open, they are effect ily shutting town the city and there are a lot of con quenss that come with that they're saying that as long as they humanly can, they want to keep the mta running, they want to keep kids in school

we will of course don't monitor those developments thank you for that let's get to earnings. diedra has those details for us. >> slack shares there absolutely tank iing and this coming despi beating earning on the bottom and top lines. revenue higher than expected a loss less than expected. investors may have wanted to see more from this company since slack is one of these name, they should be benefitting from the work from home trend so it has held up better than the rest of the market over the last few months but keep many mind where it is now, it's losing a quarter of its value. microsoft, a 500% increase first quarter revenue guidance was in line as well as full year guidance investors may have been expegting more so you're seeing

slack losing a fifth of its value currently. back to you. >> slight feel of like zoom as well in the held up a bit better still got to get to a probable position >> in the case of zoom, it really had some momentum to it slack was a little more like they should be heard i don't think anyone thought in the last couple of months, it would have been massive subscriber >> tomorrow the ceo of slack is on squawk box. that's at 8:15 eastern now that there's this mass rush to remote work then tonight, we'll have more on the economic sell off. you don't want to miss the special report at 7:00 p.m. eastern. we want to highlight huge moves in individual stocks today take a look at norwegian cruise lines. shares down 35% then the last b month. down more than 80%

it is the worst day in fact since yesterday. united airlines is down 25%. its valuation has been cut in half over the last month and chip stocks take iing it on the chin names lix amd. down 15% look at micro chip tech is down 15%. let's get to meg for the latest on the outbreak. >> as new york city was declaring that state of emergency just now, mayor de blasio saying that confirmed cases in new york rose by 4i overnight to 95. that's as the mayor has beenin gatherings with over 500 people and shutting down broadway california also advising postponing or canceling events with more than 250 people

through the end of this month. similar moves in some hard hit counties in washington state as well this as cases rise to more than 1400 in the u.s. with increased testing in some spots by drive through. the countries hot spots remain in washington state, new york a, california and massachusetts though cases have been b reported in 45 states and washington, d.c. globally, italy still on an alarming trajectory. while a better trend appears to be emerging from china and south korea. guys >> thank you over to mike for the third dashboard of the day, mike >> yeah, contessa. been harkening back to 2008 because a lot of the day-to-day market conditions have some echoes there today to a lot of folks, i think felt like the day in october of 20, or late september, when congress failed to pass the tarp bailout bill the first time and essentially the markets were a big tantrum. that was right here.

the market was doing down for about a year also in recession for a full year so perhaps things were a little dicier and you can see there the meat of the decline was done then it took a long time for ultimate bottoming to happen here, dow jones industrial average bear markets throughout hisry. a lot of folks quote the average highs. what are we down close to 30% at this point that's clearly significant this is the dow, not the s&p 500. sorry, that's the crash of '87 but you haven't seen too many in the 20s. that just dpo down 20 to 25 to 30% then stay there. you have to go back to a prior period where it's more of a boom bust cycle going around. there's no rules attached to

this but that's where the longer term squeem looks like. two big ones down 50% obviously was a herd then also s&p 500 during '08 '09 was down 50% >> thanks for that time for a cnbc news update. sue herera's got it for us >> hello, everybody. here's what's happening at this hour democratic presidential candidate joe biden wasting no time in criticizing president trump's response to the coronavirus outbreak he pledged that if he is elected president, america will be better prepared for the next public health threat >> public fears are being compounded by pervasive lack of trust in this president. fueled by adversarial relationships with the truth he continues to have. our government's ability to respond effectively have been und undermined by hollowing out our agencies and disparagement of science. >> senate majority leader mitch mcconnell say iing the senate wl not go into recess saying he

hopes congress can pass legislation to address the coronavirus outbreak mcconnell is critical of a democratic led bill calling it a wish list that republicans will oppose zblnc and starting next week france is closing all schools and universities to slow the spread of the coronavirus. french president macron is urging businesses to allow employees to work from home. he's describing the outbreak at france's biggest health crisis in a century you are up to date contessa, back to you. >> a lot of big actions happening around the world thank you for that airlines getting crushed today as fears spread after a passenger on a jet blue flight from new york to florida tested positive for coronavirus this after president trump's announcement last night of a 30 day ban on from most of europe joining us by phone, the former president and ceo of spirit airlines i should mention he also sits on the board of jet blue. it's good to talk to you today

give me a sense of where the airlines are with all these cross ocean transatlantic flights being canceled at this point. and what they've been through having so much travel down from asia, ben. >> thank you for having me on. this is a difficult time for the whole economy, the travel industry especially. this has been compared to 9/11 in terms of its demand destruction. i think that's a very fair comparison if i could give you an aviation analogy, when you learn to fly, one of the things you learn early as a pilot is when you're in a tough situation, the first thing you udoh is fly the airplane make sure you've got fuel, make sure you're headed in the right direction and that's what airlines are having to do right now. the situation is changing so quickly that airline ceos and

managements have to sort of keep their eye on the ball f keeping their liquidity high, trimming the capacity that's going to lose cash for them in the short-term, communicating with their employees, with their customers. so they can do the right thing and it's just a really tough situation for everyone right now. >> ben, we mepgsed on the board of jet blue, there was a case of a passenger catching coronavirus or having had coronavirus on a jet blue flight recently i know you can't specific hi comment on that now sit responsible for airlines to be flying at all at the moment or is the responsibility on the passenger to be fully educated about the situation, the dangers and if they still want to that i can the flight, it's all their responsibility well my view is that shutting down the national air transportation would be overkill even though this is a very difficult situation. the economy still needs to

operate in the ways that it can and we can do that while keeping good social distancing and while not getting large crowds together being on an airplane presents no additional risk than being in a restaurant or being in any other kind of place like that. the air is circulated even better than in most places so i think while travel is down because people are canceling vacations and businesses are canceling meetings, i think to go wholesale and say they shouldn't even be flying would be a bridge too far. i've flown this week the airports had people in them. they weren't ghost towns certainly the flights weren't as full as they might have been without this, but the business still needs to get done even with the compromises of no big groups and good social distancing >> ben, do you think we will see a couple of airlines perhaps the most if you look at the u.s.

industry and compare this to 9/11 in termsover demand, it's really different there are fewer airlines as a result of consolidation and balance sheets are csignificantl stronger than they were back then so i think the industry is doing the right things now this terms of trimming capps tis in the short-term and manage liquidity tightly and i think the u.s. industry will get through this okay and i think they will get through it the industry has gotten through these kinds of difficult things and even though we don't understand this, i feel very confident that at some point in the future, i don't know when that date is, but at some point in the future, demand and prices will be b back to where they were before this it may take a long time. but i think the industry is in good position to make that happen now around the world, there may be some transatlantic carriers or carriers that focus largely on transatlantic, norwegian comes to mind quickly for example. that have a lot, that aren't as

strong and we've already seen flybee go out of business. they had some challenges before but this was kind of the straw that broke the camel's back so it wouldn't surprise many if around the world, there were some failures as a result of this, but i don't see that happening in the united states >> ben, thanks so much for joining us >> thank you so much everybody stay safe and keep washing those hands. >> you, too. thank you. now the coronavirus pandemic taking ilgts toll on the sports world, games and event being canceled at a rapid pace eric joins us again with a summary of all we've learned in the haas couple of days. >> that's right. it has been a new announcement every few minutes. march madness is officially canceled the ncaa says this is base d on the evolving public health threats and practicality of hosting sports events during the academic year.

most pro sports leagues canceling and indefinitely postponing their seasons now that on field action has stopped, leagues, teams, sponsor, broadcasters, they're all now trying to figure out next steps we got billion dollars at stake here major league baseball and the nba each earn $10 billion a year in revenue hockey is 5 billion a year the ncaa tournament was billion dollars for just those three weekends in addition to so many companies, you think the marc jl those things nba officials tell us they're now trying to sort out -- yet they have to plan for sales for future events that are months down the road even though they can't place those dates on the calend calendar yes, there's written language, but executives say there's an understanding more

broad broadly that long-term partners can work together to make up for lost games and lost exposure even if it takes them several years to do it one official tells me they have been pivoting their strategier year today and this is just day one in a process it will take many weeks to sort out. back to you. >> although we could have looked at italy, what have happening with italy or soccer in japan, a couple of weeks ago. and have predicted this. are you getting any sense of how long they put off trying to make these decisions? >> i think they saw it happening in these other places. they were hoping that they could avoid it i think once you saw the player on the jazz get tested positive, they sort of knew it was over. one theory that one said, he is look, they knew this was coming and they were trying to squeeze as many games in as they could before they had to stop because every game they had to play means more money and they tried to get as much they could before it was too late. >> the bucks were having probably their best season over and so having it canceled i think carries a little bit of a punch to the gut when you're on

a great run. eric, thank you. >> you got it. >> dallas mavericks owner mark dube cuban appeared on sidewalk box this morning he gave his take on the nba's financial position in terms of insurance. >> i checked our insurance and it doesn't cover it. i'm waiting to hear back on the nba if they have anything, but there's nothing that i have. even some basic business interruption insurance isn't really going to have much help at all >> you've been having a look at what this means more broadly for the sector >> the bad news is for most companies who -- covers communicable diseases and there, you're only covered if the government orders this shutdown for instance as they have in california and seattle, ohio and new york of large gatherings if there's a civil act, then it would come into play, but without that, you're probably on

the hook for cost. >> and the percentage we think of live events that have this is very low >> because they could not have predicted. what we heard from south by southwest, we have the event cancellation for tornados, for earthquakes, but just could have never predicted a pandemic and it's too bad because last year that insurance would have been very cheap. now they have stopped offering coronavirus. communicable disease rider would specifically reduce corona virus and it would be much more expensive if you want it. >> one last thing, i guess, if you want to look on the bright side when it comes to the insurance center that they're not on the hook for the open-ended losses. >> that's very true. they will be on the hook for every policy that does have a rider and they're going to be doing the same thing and the insurers have been under pressure from rising litigation. there's likely a lot of resulting litigation of policyholder who say yes, this was covered and the insurers are saying no, it wasn't and that

adds real costs to what they're dealing with. >> all right so now there are almost 300 confirmed cases in new york state with more than 1 hun of those in westchester county. the governor announced most gatherings with more than 100 people will be banned including broadway shows this is an effort to mitigate the spread of the virus. in new rochelle, a town in westchester county 20 miles north of new york city a synagogue is at the center of a major cluster of coronavirus infections governor cuomo designated the area within a one-mile radius of the synagogue a containment area and starting today schools and other gathering places will be closed for the next two weeks with the national guard arriving to distribute food, supplies and to help clean facilities joining us now is new rochelle mayor branson. it's good to talk to you, mayor. can you give us a sense of how your community is bracing for a shutdown and what it will mean for daily life >> there's no question that it's

a significant disruption there are about a thousand people quarantined and that's been the case because of potential exposure to a carrier of the virus and now with the implementation of this containment zone as you pointed out, there are a number of schools that are closed and the activities of houses of worship are restricted so there are many people in my community that have to deal with unusual situation. they have to find child care they are not able to go to work. they are not able to interact with their neighbors in a normal fashion, but i have to say i'm very proud at how the people of new rochelle have risen to the occasion and there's been a level of focus and concern that is commensurate with, proportionate to the challenge that we're facing, but there's been no panic. there's been no hysteria and there's been no fear and people are taking direction from public health officials and supporting their neighbors and it's important to understand what the containment zone is not. it is not an exclusion zone and not a quarantine zone and no one is prevented from entering or leaving and it's not a

restriction on how a resident should operate or a requirement while business is closed and while it is a significant burden for us and it's not a martial law scenario that the name may imply. >> what, in your eyes, was the specific trigger to take this decision do you feel it's working and would you suggest to other mayors and other governors that they should be taking action earlier than you took it >> well, this is a decision that was made by state public health officials and to be clear, we think it's our responsibility locally to take direction from the authorities that have the greatest expertise and are in a position to make sound judgments. they focused on new rochelle because this is the most significant concentration of positive tests anywhere in the state and one of the most significant in the entire country and so it does make sense to give some geographic focus to the containment efforts and the mitigation efforts that can help slow the spread of the virus.

>> after the travel restrictions went into place for chinaa and some other asian nations there was reported an increase in discrimination against asians around the world there is a synagogue at the center of this containment zone. are you concerned at all about coronavirus discrimination resulting from that? >> i have to say the people of new rochelle have been extraordinary throughout this crisis the lay and spiritual of the synagogue have demonstrated an enormous sense of responsibility and commitment to the common good and in response, they have been surrounded by love and kindness and support from residents of every faith and just to give you one tiny little example. our local girl scout troupe took it upon themselves to put up purple ribbons throughout the neighborhood that was impacted and they're raising money for the scouts giving them a sizeable donation. it's a little way of illustrating that people can come together even under difficult circumstances and

demonstrate their strength of character. >> and for this, we know the schools are shut down and the businesses are shut down in term was an economic impact to the city and your bottom line >> just to clarify businesses are not shut down they're open, in fact today my family and i had lunch at a restaurant in the heart of the containment area i happen to live in the containment area so i don't want to give the misimpression that we are closed entirely what we have done is implemented sensible measures that can mitigate the spread of the virus among large gatherings and beyond that, we should all practice as good-byes with reasonable social distancing and vulnerable population and otherwise individuals who might experience serious health challenges in terms of our economy, no question that some businesses are taking a hit in part because some of their customers are quarantined and in part because others are choosing to remain behind closed doors.

in the long term, i have no doubt that we will recover strongly and we have a vibrant business community and significant investment in the downtown area which has achieved a major revitalization and we will be okay in the long run and i am concerned about the health of the local business community and we should do everything we can if we're ablebodied, healthy adults to participate in the commerce and life of our community and we don't want to overreact, and we want to react calibrated to what we face. >> mayor branson, thank you for joining us. >> thank you good to be with you. >> let's get over to mike for today's dashboard. >> this is just a sentiment check. just looking at the market action obviously there was intense fear and panic just a get me out in the last couple of days and this is the weekly retail investor survey the bears, if you look at this, more than half, and it's about 50% and these are two different scales and that's not that common to get more than 50% of the respondents to say they're

bearish and it matches significant highs from recent years. however, bulls have not quite given things up and at least they have as of the close of tuesday whenn the survey ended and people have lost all hope and like we've seen just now that will be different, but i do think right now, not all the indicators are lining up in favor of saying that this is an absolute fear bottom, but enough of them are, certainly, to furnish some kind of relief rally at some point. >> mike, if we look at the volumes that we've seen over the last couple of days. it suggests a ferocious amount of finding the right price >> in an enormous purge it has been really one-way type action and you know, there's been a relentlessness to the market and even on the way up and once we get a certain trend in place and you have a lot of the systematic traders playing it, they just run the same play until it stops working. >> mike, thanks so much. >> we have an earnings alert on gap and kate rogers has those

numbers for us. >> hey there, contessa the company beating out the top and bottom lines and putting out a warning saying, quote, due to the evolving coronavirus situation we're facing a period of uncertainty regarding the potential impact on both the supply chain and customer demand it has weathered many storms company not changing its guidance and the fiscal year 2020 does not incorporate any estimated impact from the coronavirus outbreak it's also currently not possible to provide a reasonable estimate of further impact from the evolving outbreak and potential supply disruptions or reduction in demand in these or any other geographies including the united states the company also saying it currently intends to suspend its share repurchases in fiscal year 2020 as you can see, the stock is higher by more than 3% right now. back over to you >> kate, thank you for that. it was a day of staggering losses on wall street. the dow closing down 10% bob pisani joins us for a check

at how major index etfs are trading. >> remember, futures opened at 6:00 and bond and stock etfs continue to trade and give us good indications of where the market has been and they've been reliable in the last couple of months and the spy, and this is the biggest etf out there and right now 248.11 and 245.92 is where we closed and 248.11 where we closed and now 245.92 qqqs and the nasdaq 100, also one of the largest equity etfs, 175 rid nght now and we went out 177.32 and we got a lot of questions about margin calls today. they don't put out the ads on them and they don't tell us and there's been evidence of fore selling in the last few days and if you look at bond etfs and this is the corporate bond etf and there's been selling in that recently as well as gold and

while that's not an obvious indicator there's an evidence of force. >> you can see it in the tape no doubt about it we are certainly keeping an eye on that and asian and european markets overnight. european markets in particular selling off. don't miss the markets in turmoil special and one not to miss we are out of time here on "closing bell". >> have a good night ♪ ♪ the fed tries to run to the rescue with more than a trillion dollars and fails. good evening, everybody. welcome to "fast money" on an historic night the dow falling an incredible 2352 points, a nearly 10% drop that is the single biggest one-day drop since the fateful black monday of 1987 every dow stock fell and only one of the entire s&p 500 index rose this again, on this night for your money and guidance, tim seymour, brian kelly, and guy adami. here's how the day