president of the new york stock exchange, we're not closing the markets. could close the floor, but that doesn't mean we're closing the markets. >> who are we to say talking to people on the markets all day long they're trying to get their home offices set up their risk management teams that cannot be reached by their traders. if you cannot reach your risk management team and you cannot find price discovery through getting these transactions approved, i'm not talking about buying or selling a stock. i'm talking about these complex structured products and derivatives which are the backbones of the market. if you can't have the people who can get their computers running at home. it's very hard to have an orderly market i wouldn't say anything about today was ordinarily >> the trish uri market, the paper market, a lot of people are worried about the functioning and why the fed has gotten so involved

it's a good discussion for you guys to pick up. >> be well, thank you very much. welcome, everybody, to an important show tonight i'm brian sullivan the virus outbreak rattling nerves that's a live look outside thes that zach. normally at is this time, times square would be packed with tourists, theater goers, commuters right now it is eerily quiet. the president saying the virus could stick around until late summer the impact being felt from main street to wall street. the dow ending the day down roughly 13%. an incredible 3,000 point drop by far, the biggest point drop ever apple down 12% microsoft lost 14% today every s&p 500 sector finished

deep in the red, perhaps the most incredible move of all, bogue down 23 pshs, to $129. boeing was a nearly $400 stock just a few months ago. the selloff comes despite unprecedented action for the federal reserve, which did little to ease people's concerns we have full team coverage for you tonight. let's kick things off with bob pisani, who again is on the floor of the new york stock exchange at least for now >> we saw our third trading halt in six sessions. a 15 minute halt with the s&p 500 down 7%. like the two other haltsing, it did produce a brief rally. like the other halts, it did not stop the market from drifting lower in the middle of the day stocks moved toward the close, coronavirus may be an issue through july or august that realization that this may

last longer than some anticipated led to heavy declines in travel and entertainment stocks airlines like united, all of which were down 10 to 20% since thursday, the market has begun to by fur indicate we saw cyclical names in the dow. brian mentioned boeing, chevron, united technologies, all under performed. down far legislation indeed a small group of consumer names like rite-aid said they were offering testing in parking lots for the coronavirus as well as kroger, clorox, campbells soup, all consumer names, they all traded up today. boston property, malls were up today. partners like equity residential. public storage got hit hard, on concerns that a slowing economy would impact real estate activity despite the lower rates. right now, the s&p is 29 1/2% off the historic high.

technicals don't mean much here, all the traders still watching 23.51. that was the december 24th low >> what's the mood on the floor? there is a debate. don't talk about closing the market, you're going to scare people even more stacy cunningham had had to come out and address it the conversation has been out there, has it not? >> yes and they're not going to close the market, it's not going to happen the big guns have been dragged out in the last three days secretary mnuchin, no, we don't want to. tracy cunningham said to me in an interview no, we had terry duffy from the cme on we hadpeople from nasdaq speaking about this as well. all of them agree, none of this would serve any purpose, it may

continue to erode investor confidence overall stacy's right, you want access to your money and we'll get through this, closing the markets will produce a lot more problems there's a practical problem of how do you do this, there are other ways to play u.s. stocks for example. it would effectively not really stop speculating in u.s. market activity >> the markets, even if they thought about it, the markets with 11 different exchanges are to dispersed, they're too interconnected, there's no way to shut it down. >> if you could have an agreement to do that, it would be fine. what would be the practical effect it wouldn't allow people to have access to their money, and globally, there would be other ways to play the u.s. market to effectively short it, using foreign derivatives and etf's that exist it's not a practical way to do things and i'd yo logically it's not a good thing either.

>> as loaning as everybody can actually work and do their jobs, because they're all at home now, we'll see. bob pisani, fighting the good fight, thank you very much let's turn to d.c., the president saying today, we may have to live with this virus outbreakthrough the summer the market sold off another 1,000 points on those comments the late breaking details on that side of the story eamon? >> the president giving us a much stricter set of guidelines, suggesting no gathering should happen of more than 10 people anywhere in the country. all students across the country should stay home from school all americans should stay out of bars, restaurants and food courts, this according to the president of the united states this afternoon, much different guidance than what we got yesterday. no gatherings more than 50 today down to just 10 people in that

overall ranking. and brian, i'm going to toss it back to you here, we just lost audio from our temporary connection, i'm going to head back to you because i won't be able to play that sound bite >> we will bring back everybody. eamon javers, that's what we're dealing with, everyone's trying to makeshift these things happen and we'll see what happens let's bring in guy adami also made the trip into new york city for you we are a socially acceptable distance away from each other. have you ever imagined that we would see a few trading days like the ones that we have >> i would be lying if i said the answer was yes the short answer is no, the dow jones is going to do, it's going to do, i get it, and tomorrow for whatever reason we could be up the amount of points we lost today and that's fine.

>> as i said now for a while, and my feelings on this. a lot of people coming to the realization that the moves in the bond market do not make sense. i mean, there's no way the u.s. ten-year note should move half a percent in a day, let alone 28% in one day 50% in one day the moves we're seeing are not normal that's not true over the last couple weeks, brian. that's been true virtually since september and earlier than that. so the real concern that i think people are starting to see that, is in the bond market. if we can get a handle on the treasury market, maybe that's what's being attempted now, maybe things can slowly sort themselves out i understand why we need to be focused on the 2,000 point moves. they're obviously headline makers the real under the radar thing that's becoming on the radar thing is the treasury market >> were you pleased at all let's find a little bit of a

silver lining here, the 10-year yield has held up. >> i don't know how to answer that, i understand the question. i will be pleased when you start seeing instead of 5, 10, 15, 20% days, when you start seeing it move less than 1%, so we can get some stabilization at whatever that yield is, and maybe there's some semblance of normalcy that's coming back, but to say that i was pleased with the fact that 10-year went from wherever it closed on friday, to where it closed today, i think 72 basis points or thereabouts. that doesn't -- it doesn't give me a lot of -- it doesn't aswathe my concerns, let's put it that way? >> what would? >> days, a few days, a few weeks, where instead of seeing these wild volatility swings, in treasuries, we see some stabilization. as i said, the stock market is going to do what it's going to do

we've thrown out levels for a week as a lot of people have mentioned, that december low is right in the crosshairs for those that are >> especially now, you talk to bond traders, i'm sure you do during the day, i do during the day. they're not able to necessary find prices, everybody agrees on let's keep it that way, do you think the bond market is it still going to be having some problems over the next couple days >> i think there's -- >> that's okay, though, it's going to be rough sledding over the next few days, without

question, it would be false for me to say otherwise, if the powers that be allow it to opinion i understand drastic times call for drastic measures, i get it, there's going to come a point we have to allow the market to find its footing on its own that might be painful, but i think a lot of people are learning that might be absolutely necessary >> and i think that that's what we are finding out right now >> the markets have still to find a floor, do you have any indication of what that floor may be >> i know our friend scott minor came out today, he's on the 7:00 special tonight as well, saying he could see the s&p going down to 1700. that is lower than prefinancial crisis highs >> if you want to map it out obviously everybody knows that

march 2009 low was 667 in the s&p 500, obviously the recent high was right below 3400. it was 3393. if you're looking to play in terms of levels of that entire move gets you around 2030, so i -- if you're asking me, that is a level that we could see and quite frankly given the volatility we're seeing, that's absolutely in the crosshairs i'd have to look and see what 1700 represents to get us there, if you're really looking for an absolute level, that 50% retracement of effectively the last 11 years or so would make sense. >> is there any -- >> we've talked about these things that i like to watch, the bkln, which is the bank loan atf. those are the things i'm

watching a little more closely than the equity market equities are coming down all together is there anything aside from the 10-year yield that you're going to advise our audience that they need to be watching closely every single day >> the things we've talked about, i think the hyg is fascinating. i mean, i think that's something that if you want to put something a high yield, put that on your screen, people will have -- people will say things about the tlt, the tlt is groing broken, but i think in terms of the barometer for what's going on in interest rates you should have that up on your screen as well and the last one, for what it's worth, this is something i know dan nathan has talked about. we talked about it literally since last summer. the russell as measured by the iwm. it never verified. it never backed up that move in the s&p 500, underneath the move

in the broader market, the russell was trying to tell you something as well. that's breaking down again, it's not the time for kudos, i get it, but carter worth to his credit was pointing this out as well the problem is, when the market goes up, every single day, when you try to pint out the potential pitfalls, i'm not saying it falls on deaf ears, people see what's going on in the broader markets. sometimes you have to look under the hood, and i think that's what people are learning right now. >> yeah, they are. and i want to bring up boeing if i can, guy, i know you're not a single stock analyst, as i pointed out at the top of the show boeing was a $400 stock last summer it closed today at 129 and change they have huge pension guarantees to their employees. we talked about the negative book value at some point will there, i'm

not saying boeing is it? will there be generational buying opportunities in some of those stocks >> 100%? >> no question about it, obviously, something that we mentioned. i remember a few months ago when you came in for melissa, we talked about things. one of the things we said, there are at least 20 different indicatorsed that were flashing red, the broader market was looking past it, one of those indicators was the buffet indicator, the will shire over the s&p, i think it was trading like 150 something percent the fact that warren buffett had about $128 billion or so of cash, the question that we pose is, if mr. buffet is sitting arrange with cash. what does he see to answer your question. if you see him start to dip his

toes or his toes start to dip the collective toes in their names. maybe he's giving you the all clear sign the equity market again without going down this rabbit hole. so many people became complacent in the derivatives market, with this belief that the market will never go down again if the fed has our back that does not unwind, we've said this, it doesn't unwined in the matter of days or weeks, it takes time you're talking about 6, 7, 8 years. a lot of these derivatives traders, it doesn't get washed out overnight. >> that's what i think a lot of the casual market observers don't get. we've been doing this 20 years each you short the stock, you short the etf's that have the stock. you buy a triple inverse against that all by the way at 3, 4, 6 times

leverage that's the unwinding that we are seeing right now >> and that moves. you know, the moves are exponentially greater on the down side than they are on the upside i don't want to go down this inside baseball wonky stuff, what i'll tell you with volatility at these levels, as likely as you are to see a day like today you're as likely to see a day to the upside for people who are chasing. conversely, the higher it goes, the higher they have to buy. don't think if we're up 2,000, 3,000, 4,000 dow points on any given day, that somehow this is magically over, i don't think it is my tell is stabilization in the credit markets whatever levels they are. >> well said, and we need your experience at a time like this

guy adami i'll give you a wave later. thank you very much. we have full continuation coverage of the global selloff, 7:00 opinion eastern time tonight, i believe scott will be appearing on that show, you always want to hear what scott has to say we have breaking news in airlines, particularly southwest airlines, let's bring in phil lebeau for that. >> the 8k just came out from southwest, and a couple headlines to hit here. first of all, the load factor, when i talked to gary kelly in washington, d.c., about a week and a half ago, he said, we're seeing a huge dropoff in the number of people booking flights. what's happening with people who are staying and taking these flights. load factor 67%, trending toward 57%. they're instituting a hiring freeze, reducing the available seat miles by 20%. they haven't put out their

schedule then we'll see exactly how much capacity they're taking on, that will be 20% somewhere around there, that in terms of available seat miles that southwest will be taking out of the system this comes on a day when southwest and the other airlines who are all part of airlines for america have basically said, they want help when it comes to the federal government essentially back stopping them, you heard the president during the appreciation sfrns saying, he would do that this is what they're asking for, $50 billion, that is for the airlines, and it's separately an additional $8 billion for the cargo carriers the airport's association representing all the airports, they are saying we want $10 billion happening right now as airlines pull back a couple chartses to take a look at first off. with spirit airways. look at this, this stock is now trading below it's 2011 ipo

price. then there's alaska, it was out today, talking about how it's cutting capacity by 15%. the chart of the day is a five-year chart of boeing. why am i showing you a five-year chart of boeing? they lost a quarter of their value, essentially trading down at 129, you remember the last time it was there? before july 1st of 2015. you're looking at jim mcnearny prices right now >> a difficult chart thank you very much. let's move from the airlines to apple because apple once a rock falling hard in today's selloff as well. the company taking on.

>> 52 stores in greater china, which includes china, hong kong and taiwan, those will be the ones remaining open a sense of the financial impact here, these stores account for 8% of total revenue. only until march 27th, the decision impacts revenue by about 2% of course the key question for investors, what happens if s if remain closed beyond that date specifically iphone demand in the quarters head, since that

stock's recent high february 12th, apple has lost $370 billion in market cap, guys, back to you. >> everybody's working triple time, by the way the maga stocks have lost over a trillion dollars in value. four names lost a trillion dollars in the last couple days. it's not just apple, it's microsoft as well. if you want a phone or need a computer, or need an ipad or want that, you're going to get it online or eventually many of those sales will be made up. >> yeah, so it's interesting how i think the argument is shifted here a bit this is terry go, he told reporters it was a few days ago. largest manufacturer of apple devices. he was saying the factories in china were coming back online, his concern was demand and he specifically did call out

the u.s. you know, the folks at credit suisse would tell you, the length of time people keep their iphones extended 9 months to about four years they use that as evidence that an iphone, they say as a discretionary item, one that people are willing to postpone buying if they're feeling more comfortable about the virus. >> josh, thank you very much we have some breaking news out west, let's get now that with julia borstyn >> regal cinemas will be closing all its theaters until further notice this is a full closure they were limiting attendance to 50%. they'll be updating the theaters on their mobil app this consists of 155 screens and 542 theaters in 42 states along with district of colombia.

the first major closure of any of the three and i max, back to you >> regal cinemas closing all 542 theaters thank you for that breaking news. retail another big victim in today's selloffs a growing number of stores shutting their doors for good, or at least for a long time. measure of retail stocks falling 13%. 17 retail stocks today or more let's bring in courtney with this story >> this is a fluid situation they're starting at least with a two week time frame. when we get to the end this could all change or potentially earlier. let's give you -- smaller names,

lily pulitzer, tommy about a ham in a, you know apple are closing all their stores, as is nike, pvh, that's calvin klein, tommy hilfiger underarmor opinion. >> you have a whole crop of retailers that are shortening their hours. so they can restock. this includes names like walmart and its neighborhood markets sam's club, trader joes. stop and shop is doing something interesting. it's allowing seniors that are 60 years old and older even to shop between the hours of 6:00 a.m. and 7:30 a.m., in order to protect them of those retailers that are closing stores, the good news is most of these employees and most of these retailers go plan on

paying their employees at least those that were scheduled or would typically be working those hours, it's going to vary a little bit from retailer to retailer at least in the beginning, there should be financial relief >> good on them for opening the stores for the most vulnerable among us, i know it's a difficult time courtney reagan, thank you for joining us by phone. maybe there's some very good long term opportunities out there. i know that it's not just about the equities it's about debt, i know you've been watching the debt of macy's and others what are you 150eing, the equities have been punched in the face >> and rightfully so, macy's has been punched in the face the closing of the stores and they still want to pay their employees, they're going to be

bleeding cash. you have to look at the balance sheet. who can afford to bleed cash looking at macy's, now it's 22%. it seems insane that they would continue to pay that dividend and use that cash when they're going to need their cash not right away, but pretty darn soon they don't have any maturities coming up so quickly, they need to use their cash in a better way. we may have a chart of the debt that's been hanging in there it was hanging in there until recently, and then it got smoked it's down to the low 80s, if you were to buy it, there's only three years left until it matures. there is a 10% annualized return for senior unsecured debt. i don't think i would buy it, there's more room to fall.

>> yeah, we're watching the debt, and this is the story that we've been talking about certainly on this program. not just for the last couple weeks, but before that, you have to watch the credit markets, they're going to drive the equity, in an equity perspective today, do you think today was the washout? the flush? or is there more down side >> i think there's more down side to come, there's more credit crisis to come, for the strong retailers, target was one of my better performers down $7 today. i feel good about target i could trade lower, they're where you want to be they're what the consumer needs right now, and the balance sheet is in good shape and i think the business model is a lot more secure

simon is getting obliterated it's a pretty tight deal, simon stock is well below that because there's such fear in the mall space it's getting in the way. >> tiffanys. -- do they try to renegotiate those deals. you're going to see a very strong and different view. lvmh have all had excellent lawyers.

they're going to have to try to have this coronavirus and the shutdown along with it be some sort of force majure there will be a lot of fights about this the risk communities that own these are very nervous the spreads aregreat you can jump into -- >> karen, pretty unbelievable stuff there, looking at those names and retailers as with the. the markets may have more down side to come it's exactly 5:30 p.m. eastern time here in what is a very quiet no. it was anything but quiet in the financial markets today. the dow falling 3,000 points quickly a trading halt, really seconds after the market opened,

the president suggesting the viral outbreak may stay with us until the summer those kicking in another level of selling the dow finished the day down today. the nasdaq posted its worst day ever the selloff coming despite unprecedented reaction from the federal reserve. flooring interest rates. and a surprise move last night let's go to steve liesman with more >> the reviews are in from the fed's move last night, and they were not very positive from markets. the sense was, it was not enough to resolve the problem it's going to take more time i wan the to go through all the actions the federal reserve has taken. it's been an escalating series

of events. at least for the moment. the crescendo was last night, a huge mood it's made. on the 12 th they announced a total of 1 $1/2 trillion in repo operations the 15th they cut rates to 0 they did an additional $500 billion. don't be confused by the 500 billion. all the 500 billion means right there is that they're making infinity amount of repo available to the market. let's see some of their views we got today. the investment bankers and the people in the market i talked to today said at least some funding markets remained -- still not functioning properly led to the repoe by the federal reserve. there was some better trading

after that the federal reserve was part of that today there were treasury purchases, many huge submissions for those. like i said, a lot of people saying right now, brian, the federal reserve should be doing more than perhaps a commercial paper facility one more thing, we did our fed survey over the weekend before the fed came out 40 respondents many of the names who you know, they're saying now, a 67% probability of a recession in the next 12 months in the united states brian, i think there's a big change here. one is that there is pretty good or an odds on bet of a recession in the united states with the second quarter hopefully being the climax of that hopefully some rebound in the latter part of the third or fourth quarter some questions as to whether or not the federal reserve because of the amount of debt out there, is it in the right place yet to

address these issues >> we're going to get to jim in a second there's two types of recession there's one that is short, sharp, pent up demand brings everything back once everything gets back to normal. then there's a slow painful slog is there any issue what will this is if we get it they buy a car they wanted to buy, they get back in the housing market >> forgive the moment of levity, there's a short sharp shock i believe. i think that's the odds on bet here i wish i had that full screen, i don't know if you have that quarterly full screen you were using, which shows the trajectory now looked at for the economy. basically, look for 1.1% growth in the first quarter

minus 1.8% about flat in the third, and the rebound to 2% happened in the fourth quarter >> nobody has modelled it before -- it's very clear these is all be done on an add hock basis, we're trying to to shut down the economic activity it's great you put that up and also trying to figure out things like default. they're talking about $50 billion of aide to the airline, a large stimulus package coming through, a lot is going to depend on the stimulus package powell last night was very clear. public health first, fiscal stimulus second. and in the third place, monetary policy if those first two pieces can be put in place, we have a chance of avoiding worse outcomes here for the economy. >> we need levity, i think the album had the orange gras fitty

on it. steve liesman thank you very much let's bring in jim and stewart. jim, first to you, are you surprised that this unprecedented and really sledgehammer like action by the federal reserve did not do more to quell and calm the equity markets? no, i'm not surprised, i want to push back a little bit on what steve was talking about with the consensus, the fed did everything they can. the fed put does not work any more you can depend there's other tools in the toolbox, but they're not going to work. the reason they're not going to work, is that there is a mass liquidation going on not only are stocks going down, gold is going down, credit is going down, currencies are going down the commodities are going down, bonds are rallying, it's been a meager rally, considering all of the tools that have been thrown at the bond market

everybody's in complete invention mode they'll invent new things but they'll be equally ineffective as this one was. >> you have been down there all day, buddy >> we've seen this three halts in the last few days, brian. and when you're sitting on the floor, before the opening bell that sent some urgency is really starting to build up, clients hitting you, people talking to you -- i think the market is bottomed the market can't bottom to jim's point only unless we see a headline about some optimism on a vaccine, will you see this market bottom out, and we're so far away from that let's talk about technical levels all the way up to here we have a couple levels that stand out. 2,000 is where goldman thinks the bottom is, 1700 is where you

get that 618 retracement why is that important? because where the market bounces is usually between the 50% and the 618. and why is it so important to look at technicals no one has a clue on fundamentals, no one knows where this is going to stop. that's why technicals are extremely important. >> and scott, i think today and we talked to him last wyche, i believe he's on the special tonight said that 1700 on the s&p 500 as painful as that sounds, steve, was not out of the question, you kind of have to go back to beforethe financial crisis to kind of almost reset the economy because of all the debt fueled growth of the last decade. >> that's true, and the problem is, that no one understands what the ramifications could be here, and then when president trump came out and said maybe it's till august everyone said, you

know, let me take my chips off the table, let me sell my gold, let me sell anything that we can sell, not that we think it's going lower, but i can get a bid for it i think what you should really watch in the marketplace are the airlines, if you start to see the airlines get bailed out and those stocks bounce. i think there's a sign there's a rescue wagon coming around the block. those have to bottom for the market to bottom the ones that are in the bull's eye for corona >> american did rally a little today. i look at all these things, some of these closed in bond funds we never talk about that are out there, some of these high yield etfs we mentioned earlier on in the show, you talked to people inside the credit markets right now. clearly they're dislocated a bit, how dislocated are they >> they did more than a bit dislocated parts of the credit markets are very dysfunctional they're not trading properly,

there's no bids, maybe there is, if you go to lift it, it disappears this market is still well from being healthy. and that's one of the reasons i think that the fed numbers aren't working again, i've come back to the problem as steve was saying, everything's for sale right now, doesn't matter what it is, everybody's trying to get out of everything, the only thing that went up today is what the fed bought only because they bought it today if they were to stop buying it tomorrow, the bond prices, the treasuries will fall too >> there is dislocation, there is dysfunctionality in this market it is very difficult to trade it, that's not going to change tomorrow morning or wednesday. we're going to need something significant to change it >> i want to be optimistic, steve. why not? >> 40,000 test kits are on the way, when the day comes, not if, it will be when. i know how smart all these scientists are working on this thing, sooner than later, we get

a headline of a vaccine that works. >> the dow goes up 5,000 >> yeah, that's the number that i've been tossing around with clients. they've been tossing it back to me that's probably the agreeable amount let's look back to 2018, december when we had that selloff, the selloff from the time it sold off to get back to those highs was 143 days most people think we're going to take years and years to make up the ground and i don't think that's the case. it will be a whiplash recovery does it bounce from the 1700 level or 1500 or does it bounce from 2000. i'm not calling a bottom here, but i am saying that whiplash back to old highs, to where we started this is probably going to shock a lot of people when it's sooner than later >> you agree with that >> not really. i think there's going to be a

big whiplash back. i think there's a lot of long term damage that's being done. a lot of attitudes are being changed. that's going to stick around for a long time. if you want to be more optimistic and a more immediate headline a vaccine's off. how about hurricanes of thousands of tests how about a feeling we now know where the virus is in the united states we know who has it, who doesn't have it, we can start to define the problem, right now all i see is disneyland packed, bourbon street packed. the bars on st. patrick's day packed we are creating more cases, not a lot of people take it seriously. as soon as we take it seriously, we get more tests and get an idea of the scope of the problem, we can start hitting the bottom right now, it feels like an open ended problem that isn't getting better >> forget about the markets.

is there a benefit to say maybe let's just basically stop the economy for two weeks, i mean, take it seriously. i saw san francisco saying, you can't leave your home unless you need medical attention or need food, that's likely going to happen in other places in a day or two, the way things are going certainly. we have a ban on nonessential travel in new jersey from 8:00 p.m. to 5:00 p.m would it be better to have a two-week complete shutdown of the economy to cleanse it out or just something else? >> youknow, i fear that we're headed that way, and i think a two-week shutdown is not only going to be the economy but the financial markets as well, to. you can't close the economy without closing the financial markets, if you're going to go down that road it's going to be determined by whether or not we're overwhelming the health care system this looks open ended.

and that's why i think these markets are having a hard time with it, if you can give me or the markets in general some kind of a definition of how big the problem is, we can find a bottom real fast. right now, i don't know what it is, and neither does the market. >> i think that jim brings up a great point. only a handful of days ago, we had a major league baseball event happening. we had ncaa event happening. i think people are fast forwarding and understanding this is real serious, we're closer to that point of the day of reckoning than we were a handful of days ago, i agree with jim, you needa little mor seriousness. stoppage, i think we're about a month or two out from bottoming. >> we appreciate it, tough conversation, we appreciate your views. be well. the rapid spread of the coronavirus forcing a growing number of americans to stay home, work at home, and that's

having a major impact on some big media companies as well. let's get to julia boorstin in l.a. with that side of the story. >> people are likely streaming a lot more netflix nilsson is reporting staying in your homes could lead to a 60% increase in content consumed that won't lead to an increase to subscriber account for netflix, netflix will not benefit from increased viewing hours, because it has a flat subscription fee with no ads she knows that netflix has a junk bond rating and negative free cashflow. raymond james has a strong buy rating on the stock says they see signs of downloads and usage could provide an eventual catalyst for price increases as for concerns about password sharing, the risk is manageable.

greenfield points out that netflix will benefit from the shutdown of live sports and movie theaters he predicts netflix will add subscribers. three new rivals, all of which will offer free trials, quiby april 6th, and peacock is scheduled to roll out nationwide on july 15th, netflix is holding up better than the broader market, down about 5% while the s&p 500 is down over 20% now we'll have to see if any of those new streaming services delay their launches or if they continue with their launch plans with the idea that they're going to be able to reach a lot more people at home. >> guys, back over to you. >> they are, and we'll use you as an example. i can tell you're not in the l.a. studio. we're all trying to do this from home, it's like, get off the wifi to the kids, i need to do a

live report for cnbc >> yes, this is my first day broadcasting from home, just trying to figure it out one day at a time. >> we're all going to be there as usual, you're a leader. thank you very much. you just heard julia reference laura martin, the magic of television or a telephone. behave laura martin with us as well i think the early thinking was, it's great for netflix and pell le ton because they're going to be stuck at heam. >> right specifically, 60% of netflix revenue comes from streaming offshore, as youknow, travel has stopped advertising and entire countries have quarantined themselves people that don't have jobs and aren't getting hourly pay are probably going to eat first and pay their rent even though $13 two weeks ago

may not have seems like much money. we are very worried about the 60% of revenue offshore for netflix. and secondly, we do think there will be more streaming hours, netflix gets a fixed fee per person, and, therefore, with 61 million subscribers here out of 80 million connected homes much more likely that -- to participate in the streaming services where they do make more money if you watch more tv. >> i know this is early for a lot of people. maybe day one. any gauge so far laura, on the trends that we are going to see as the last couple days given any clue or indication about how things are going to shake out in the streaming and media world. >> i think it's a little too early to say especially on the economic side. i think people are -- kids are

home more, there's more televisions tuned in to television and streaming there's no sports on, which is negative for the tv ecosystem. that's the primary anchor. all those people are getting displaced. we have to see how long it lasts, that's the big question right now. >> what about disney they have frozen 2, which you hear a lot of buzz about are these going to be winners or is the theme park side of the business going to drag down incremental benefits from the streaming customers? >> in the walt disney company, theme parks are 15%. let's call it 20%. for frozen 2, even if they got increased streaming or they got increased subscriptions. it wouldn't be enough to offset those closures for any length of time >> what's going to happen with

the networks that are highly leveraged to the money they spent on sports? i'm thinking viacom, cbs, march madness. a month long, had to be a massive moneymaker for the company, it's now gone all these sporting events. how is that going to play out? >> yeah, so -- i mean, it's a really good question, we don't have the contracts in front of us almost no contracts mention pandemics as a reason not to pay. if they don't deliver the game, if the league doesn't deliver the game, you don't have to pay for it which makes sense. you only get paid if you deliver the content. if that's true, the leagues are going to take this on the chin, nhl, mlb, nba. >> yeah. >> then it's like, you have to find programming to put on the air yesterday to fill up 24 hours a day. your viewing goes down for sure. i don't know if you make less

money. i'm sure it's a scramble while you have to air content 24 hours a day. and you lost 10 hours of content you thought you were airing tomorrow and the next day. >> the experiment has so far -- even before this happened, the stock had been suffering if we could throw up a one-year chart, it was a $53 stock last july today it closed at 18 bucks. how low can this stock really go >> at some point there's either a bottom and there's buyers or there's other options. >> right, and i think the issue here is the balance sheet. the market is making the distinction in the balance sheet. right now, as of today's close the total equity market cap was 8 or 9 billion and the debt was $18 billion much that's super scary, even though they don't have maturities, they have to make

the interest payment in an ad driven company, you worry that their revenue falls enough does that create financial distress when two thirds of your entire enterprise value is debt that's what's happening to the stocks today >> okay. laura martin of needham, thank you for joining us by phone. we have got some big breaking news on boeing, let's get right back to phil lebeau with that. >> boeing is having its credit rating cut by s&p to one grade above junk status, the concern being that you're looking at cashflows that will be under pressure on two fronts, really we know about the 737 max which boeing believes will be ungrounded by the middle of the year freeing up deliveries to begin maybe in the third quarter or early in the fourth quarter, we've known about that for some time the other issue that's really

come to the forefront has been what happens to airline customers who have ordered aircraft and now because of their finances being under pressure as people around the world cancel flights and generally do less flying, are airline customers either going to defer deliveries, cancel deliveries, look for help from boeing that's a 1-2 punch that's hitting boeing cashflow potentially over the next six months to nine months and that's the reason why s&p has cut the credit rating on boeing to junk status >> i know they got hit by fitch last week. thank you very much. joining us now is tim see mother, joining us by phone. there you are, tim good to see you again. some day we'll meet in person. >> safely nearby >> this boeing news troubled for the equity, i don't want to go too in the weeds, you look at the stock and you see these companies that get their credit

rating downgrade you have to watch these bond etf's that can only hold certain percentages of investment grade. if we see more companies get their credit rating cut, it could put more pressure on this little talked about side of the credit market. >> this was the credit story, the market is a credit story now. let's get to the credit part of it, boeing is a perfect example. precashflow as little as a year ago, now they're probably somewhere three times leverage at this point. and this is the outlook and the downgrade, and this is one of the biggest companies in the world. we talk about it, and we have talked about it in the last couple years dead to gdp. certainly for the economy on the gdp level. but you can see the credit story

and that that huge tranche of triple b virus that's what leads companies to credit issues, and that's what the market is doing right now to companies that i don't think that the equity is really where the focus is >> at one point does boeing become a legendary buying opportunity. 400 to 130 >> i would have said that before we started assessing the health of the airlines as buyers of the next planes as truly the near term issue obviously the plane in both production cycle and the order book are measured in years not months, and this is the company that is historically well managed and certainly manages that process i'll let the airline analyst talk more before that, i think that boeing from a revenue side

of the income statement is something that people have to question differently in addition to the credit story. >> is there any move or any part of this market, tim, that doesn't -- i know a lot of it doesn't make sense, we don't know, when you look at certain stocks, do you say -- and i heard jim -- he's going to pick up the coverage here in a few minutes. not all stocks are the same, things are going to come back -- is there any part of this move that you look at and go, that doesn't make any sense at all? >> well, look, a lot of it doesn't make sense, but the market probably wasn't paying attention to what made sense on the wayup. a company like home depot, let's get right to it. at a time when rates are low, people are still -- they may have job pressure tomorrow, but they still have a revolving credit line, i think with rates where they are, and i think this is a place where they're going to continue to see strong fails.

city bank which is down 52% in 45 days or something like that is again a company that is a money center bank who arguably their debt interest exposure is not extraordinary, but it is something where people are starting to question the credit story, i think there are companies like amazon's out there saying we're going to add 100 wear house deliveries to their arsenal at a time where they're being opportunistic in a very difficult time. that's great news for amazon i think it's great news for the country. i think these are the moments you need to be looking at companies that certainly can be opportunistic in this environment. there's no question, there's a number of companies that are in there, oh, boy i don't think i was going to see here yet. the credit story is not going to give you a clear picture in the next couple days the policy response that's moved into overdrive, i think what we

heard from g-7 today, who do you have confidence right now when you look around the world. that's the big issue for the market >> what we need is for a couple days to go by, where all those graphs we're obsessed with now, start to roll over, when we start to see it roll over and hopefully in italy and spain and the united states, that may be the best part of the market, i was focusing on ea sports and activision blizzard, those stocks down 14% a week i'm not advocating for the names, it's not my job these are sort of stay at home stocks, and by the way, esports may pick up some of our viewing coverage >> why not even before sports was scuttled, people were looking at sports and interactive gaming, betting along with sports, this is clearly a vertical that's extremely exciting, ea actually

has been somewhat challenged over the last 18 months. the valuation coming into this was actually reasonably compelling we talk about media companies that need to make an acquisition. onlining interactive gaming and esports are here it's not even a question of that that is media. i think the content around it will see more. >> about 30 seconds left in the show what do you expect tomorrow? 1500 point gain for the dow? >> that would be a tough call. i do think that right now folks are focused on the margin calls and the left that was in the system are what we saw today i don't think that ends tomorrow, i think we are wickedly oversold. i think people talked to a lot of people today, i am -- it's time to look at places to put money to work. >> ending on an optimistic note, we need more of that thank you very much.

today was the fifth trading day in a row wherethe s&p 500 swung by more than 4% either way, if it does it again tomorrow it will tie the record six trading days in a row set all the way back in november ofe the sell-off right now, take care >> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica want to make friends i'm just trying to help you save some money myion is not just to put in context entertain but to educate and teach you so call