. breaking news, the dow doing something it has not done in three years. >> as president trump signs phase two of the emergency financial relief bill as a $1 trillion phase three package hangs in the balance >> crude faces the worst day in history. it is thursday, march 19, 2020 cnbc special coverage of the coronavirus outbreak begins right now.

good morning welcome. i'm morgan brennan live at cnbc headquarters kicking off with historic moves on wall street as the dow moves towards 20,000 the first time since february 2017 the dow has now erased all of its gains since president trump's inauguration back in 2017 this morning's futures it has been volatile, we started higher, turned lower we've gone flat. right now, the dow is indicated to up 194 points, the nasdaq to open up 143 points it has been a wild ride. futures spikes on the news of the stimulus from the ecb. we've been bouncing around ahead

of that 9:30 open. taking a look at the bond market we've seen a lot of volatility there. treasuries yesterday sold off with significant spike climbing as high as 1.25%. now coming off as investors move back to treasuries with a 10-year at 1.177%. just off three-year highs. i want to get a check on crude bouncing back in a big way after sinking to its lowest level in 18 years 20.37 a barrel ice brent 26.91, an 8% bounce. we are still at these multi-year lows i want to get a check and look at the major moves and major

volatilities a lot of talk now about the potential of a dollar shortage you can see 101.48 there. jeff is standing by in london. >> good morning to you after miss firing last year, chris teen lagarde, the president of the european central bank has come good extraordinary times call for extraordinary action that's how she defined this 750 million euro purchasing program. ultimately, they will step into the markets and biuy assets, bot sovereign and others it has helped equity markets

european markets are all higher at this hour as they respond to this from the central bank in terms of the credit marks, this is where the focus was. there was a concern we might see a lowing out we saw immediate tightening of significant levels across the european sovereign debt markets. the spread we watch very closely between the french and italian have all contracted the session in asia and show you the asian markets despite some of that positivity early in the asian session. many of them starting to lose any gains they had all to play for in terms of how

we see your session evolving here but right now, there is positive news here in europe and it is helping both credit spreads and the european equity space. >> thank you rahel sol momon is here with th latest >> president trump signs relief package known as phase two providing sick leave, testing and sick leave also trying to help industries ramp up production of emergency medical supplies as lawmakers continue to negotiate over the more than $1 trillion phase three relief bill that would include among other things sending checks directly to u.s. citizens and federal

ba bailouts the federal reserve creating a backstop >> general motors studying whether they can use auto factories to use for ventilators space. they won't be retooling but they will use extra space >> we have seen a number of factories halt production. har harley davidson is another one joining me now for the first time on the news line, sylvia jablonski. incredible to think it has been

one month since s&p 500 made its last record high and to think we are now trading down nearly 30% from those levels. how would you contextualize where we are or are we finally nearing the bottom is it even possible to say >> caller: as you said, it is feeling like unprecedented times where we can go out of a comparison to 2008 things do feel a little different this time. i think we are hitting lows as the news gets worse. the news was also expected to get worse. we are hearing about hotels and restaurants shutting down. markets on edge. there is a lot of fear a lot or not all of that or near all of that might be priced into the market for now there will be potential consequences on the economy in

the short term potentially longer than what we thought. what we thought was missing. sort of containment in the u.s this morning, we heard hubei reporting no new cases at the epicenter. if we take a step back, the data on the coronavirus is on down trend or stopping. we have to see how the economic activity steps up. i think ecb, $850 million stimulus, and $1 trillion globally but i think what we need is stabilization on the coronavirus news >> to your point, looking at the moves the fed has made, all of this fiscal stimulus and relief

that is now making its way through the federal government now. a lot of use of the term bazookas being fired now to quell the pan on wall street and main street we get these new headlines and the selloff even accelerates why do you think some of these stimulus and government measures to help haven't been mor positively received by the markets in the meantime? >> i think what is happening is we are getting positive news about what we are getting from the fed. at the same time, what is going on with the virus. the amount of sick people and the spread and the criticism about the lack of plans and the plan here to contain and what can get worse. if i take a step back and look

at the market, i can look at it and say, there are incredible opportunities to buy on the names i've been wanting to get into >> like what >> things that won't go away growth in technology semiconductors to help the growth in ai, 5g, apple, microsoft. all of these things that operate from the china eco system to the u.s. and over the last decade or really the last year a lot of those names are on sale but you have this volatility it is really hard to look at your account and say, gee, i got in i'm up 5% today, down 5% tomorrow a lot of investors are starting to look at things like flight to safety, quality names and

inverse. >> a lot of whiplash daily or even hourly. thank you. when we come back, oil coming off the worst session in history. our next guest says it could get worse. >> and london nears a lockdown hours away >> and former irspit airlines ceo and his take on boeing more after this. serve the full . t. rowe price invest with confidence. to challenge your thinking and test your execution. but great minds are driven to seek out the complex. they see what others don't, from an angle others won't take.

they learn that embracing those challenges is what sets them apart. i am justin rose, and we are morgan stanley.

welcome back oil prices are bouncing off new levels looking into a weave of stimulus moves against the impact of the coronavirus. russia signaling it would like to see higher prices but it is stopping short of reaching out to opec and other partners wti trading at 23.19 ice brent at 26.74 let's bring in emrita sen, chief oil analyst. thank you for being wi-- having me the move lower was particularly stunning more stunning is your call for where brent is headed. tell us about that >> caller: i think the biggest

issue we have with brent right now is that we have so much oversove oversupply at the pump not only because of the production but the complete collapse of the use. you are not going to shut in high-cost producers. >> you are saying brent risk testing $10 and you are saying as soon as april >> that's right. we predict oil demand could collapse simply because of the drastic measures being taken by governments in europe and u.s. to implement social distancing >> i was going to ask you how sustainable is the barrels per day from saudi but how sustainable is $10 a

barrel during this price war >> caller: it is not sustainable for opec or the global economy the issue is if you need that high-cost producer to shut in, we may have to touch completely unsustainable levels for a long time look at canadian prices right now. they are at $7 you will probably get market forces from keeping those levels we are getting towards those levels i know you are talking about the potential for a deep and painful collapse in crude. tanker rates those ships that are transporting the oil around the world. how supportive can that be and could the federal government

moves if they are coming out to buy more crude be. >> it is a drop in the ocean it will be about 79 million barrels. if you think about our oversupply, it is a record of 2 million barrels a day. that will not make a difference. other companies will provide because of the oversupply and because saudis are trying to push more crude into the market. for refiners also eating to producers directly we saw record lows yesterday as

well how much pressure could this put, potentially positive pressure on things like gasoline, heating, et cetera >> gasoline will be the worst affected given social distancing the problem now, yes, it is low prices but demand collapsing as well consumers will only see the benefit once demand picks back up which we don't think will be before the summer. >> thank you for joining us today. still on deck, the new york stock exchange shutting down for the first time covid-19 hits amazon in the warehouse. >> announcer: today's big number, 8% that's the average loss of an s&p 500 stock yesterday. the index is on pace for its worst month since october 1987 was a softer, more secure diaper closure.

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so we created a customized solution using the hp elitebook with built in security features it'll help protect your people and your data. spy, spy spy! they're actually very nice people. you need it orchestration by cdw and hp. featuring the intel 8th generation core processor. welcome back amid the joongoing coronavirus outbreak, london is moving towards a total lockdown >> morgan, i don't know how many days i'll be reporting from london we've come down to buckingham palace right in the heart of the tourist district

it is a very fast moving pace here schools have announced they've all closed exams canceled the death toll has moved towards 2,600. the government will double down on its testing trying to get 25,000 tests conducted per day emergency legislation coming down including a partial lockdown of london the queen is still in london the royal standard is flying above the palace we believe that is temporary the queen is due to go to london and go to berkshire castle and sit out the virus there. more on the emergency laws we think will go into the legislation. the option just nodding it

through as well. the coronavirus bill to detain and quarantine people, canceling school, court and more potential london lockdown on the cards. >> steve, stay safe. the british pound falling to the lowest level since 1985. how much of this is the macro picture around coronavirus and how much is the effect of the uk has been in a specific position giving brexit, its relationship to europe, et cetera in the mist of all of this >> i have studied the pound since june 2016 when we had that brexit vote. the main level of the pound has been literally glued to the 1.30 level. this is undoubtably about

coronavirus. this is nothing to do with brexit it is all about the coronavirus. that pound demise is all about the rush for dollars the dollar finally becoming safe haven of choice. we are seeing the ftse aggressively hit lower you normally think as the dollar rallies against the pound, the parm su pharmaceuticals and others should be on the rise but they aren't we've seen the decline and no demand coming through in the oil prices the likes of bp in this market >> i had a feeling you would have some insights on this straight ahead, the airline industry banking on a bailout.

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stocks facing more v volatility president trump signs off on emergency aid to help more

americans. and the white house push to give airlines a fiscal lifeline the former ceo of spirit airlines is weighing in on the battle it is thursday, march 10, 2020 this is cnbc >> welcome back. i'm morgan brennan live at cnbc headquarters kicking off this second half hour with breaking news the dow breaks below 20,000 for the first time since february 2017 on pace for its worst week since the financial crisis the dow has erased nearly all of its gains since 2017 it is a volatile session the dow now indicated to open down 58 points a similar story for the s&p 500,

which is posed to open down three points nasdaq futures are posed to open up about 55 points it has been a wild ride. futures initially spiked on news of the stimulus from the ecb you can see that charter that opened higher. we are hovering around the flat light. want to get a check on the treasury market the 10-year firmly above 1%. want to get a check on crude too. crude is bouncing back in a big way. 20.37 a barrel in trade on wednesday. it is now up 12.5% that after the steep selloff putting wti at 22.88 ice brent at 26.40 now, up 6%.

let's go worldwide as well more red on the boards in asia a rebound 0en the w-- on the wa. going to lone con with geoff >> talking about that ecb move 750 billion euros. it is a pandemic emergency purchase program or p.e.t. they will ease collateral standar standards. this is designed to support credit in europe didn't help with the asian market any positive we saw around the ecb action just walked away. europe is slightly different story. christine lagarde saying extraordinary times require extraordinary action

that did give diggs early on to the european session futures have weakened. we have seen some markets start to lose the gains like the central dax. telling you what has happened with the sovereigns here in europe very, very quickly we saw a tightening up of the bund the french, italian and spanish yield all came in against the 10-year. they are sighing, okay, we finally see a backstop we can buy into there is a positive sentiment here in this hour. we'll have to see how investors will digest this risk. back to you. president trump signing a relief package late last night

known as phase two providing paid sick leave, more virus testing. also the defense production act to help ramp up production of emergency medical supplies as lawmakers and others continue to negotiate over the $1 trillion phase three relief bill that would include sending checks directly to u.s. citizens and industry bailouts. eamon has more with us >> that vote on the phase two bill was 90 to 8 you are starting to see some bipartisan action. starting with that first bill now being called phase one it looks like we are going to have a lot of phases passed by the house of are especially tiffs and signed into law.

$8.5 billion was the first one last night, we estimate about $105 billion largely in terms of sick leave and unemployment spending there. phase three is what they are working on right now that is the request from the treasury secretary mnuchin for a large amount of money, up to $1.3 trillion. phase four was requested yesterday about $45.8 billion for agency funding according to the white house they are asking for a lot of money to keep the agencies going. democrats in the senate saying that they want their priorities answered as well chuck schumer and top democrats have said if there are going to be bailouts, we need to make sure workers and labor come

first, that workers are not laid off. you can imagine as it was said, let's not let perfect be the enemy of the good here let's vote on a bill and move forward to help americans right now. you can imagine democrats will see some of what they want here. >> eamon, stick with us. there is a lot to digest here. for more on washington's response to the ongoing coronavirus outbreak, i want to bring in our cnbc contributor. good morning to you, jimmy i want to get your reaction to all of the different phases in terms of stimulus. how quickly it is moving and whether it is ultimately going to be enough >> hopefully, it will be moving more quickly than it has so far. we need to move fast there are people losing their

jobs and businesses shutting down this is not going to be 2009 where you have the administration proposing a number and then the republicans trying to slightly get under that number. i think the ultimate big number will be well over $1 trillion. it would not surprise me if it's $2 trillion. there is a proposal now that would propose $1 trillion in aid to small and medium businesses direct financial assistance to keep those businesses running. i think there will be checks sent out there is a growing need that we can't have businesses shut down. if we want a strong recovery on the other side of this that can't happen. you have to have people attached to their businesses. keeping people on payroll and making sure people can make their expenses >> given that some companies are

already starting to issue layoffs right now. >> eamon, it may not be 2009 but there is a lot of relating this to a war, comparing this to world war ii the thing that struck me is that in time of war, at least you see some sort of industrial ramp up in response as well. it seems like we got something of that yesterday with the defense production act break that down, what that means and how the industry can start to make some of these much needed medical things now. >> ge is doing what they can to make ventilators now the question is how quickly can the rest of the economy pivot to this it is just a big unknown the moment phil la bow brought

us the news that the big three are shutting down production because it is just not safe to be in closs proximity to each other. compared to world war ii sure, to your point, they shifted what they were producing and went from automobiles to tanks. you can't do that in this crisis there is no comparable analogy to what we are seeing here one thing i want to mention is the lessons of 2008, 2009. i keep coming back to the idea that a lot of american politics and what we saw in the bail outs the bankers that caused the crisis received the bailouts it goes directly to the tea

party move and talking about the system being rigged against individual voters. that is the legacy of those bailouts politically what we do now over the next week or 10 days will have a similar legacy how the future of the country is shaped, politically, economically and morally will be decided decided by senators rushing out the door they have to take into account the implications of the politics for a decade or more >> a perfect segue to this next conversation we are looking to have jimmy, eamon, stay right there also a huge amount of focus on specific industries like airlines >> the airlines will be number one if you look at what's going on they go from having the best year they've ever had to having no passengers because of what

we've had to do in order to win this war >> as part of phase three, they are looking to secure a lending facility something insiders like former americ airline ceo said still to come, former spirit airlines ceo ben, thank you for joining us here >> great to be with you. >> seeing this play out so quickly. with airlines and where passenger travel is concerned, a $50 billion lending is this the right move for the airlines given the circumstances right now? >> i think it is a right move to help an industry in a growing

economy. whether it is the right number, i don't think any of us know it is not appropriate to have groups of people maybe in an airplane we don't know that yet $50 billion is the right start they employ a lot of people so to support jobs, it is a great way to spend money i heard somebody refer to this as world war c i thought that was very funny. >> eamon >> ben, i've got a question for you. with all of this support a lot of it is taking the form of loans, low-interest loans, loans nonetheless. to what level can the industry bare that kind of debt if you are receiving loans for an unknown amount of time and you have a period in which

you'll basically have zero income how do you repay that debt what are they doing to think about that problem >> it is not ideal of course it would pressure the balance sheet because the companies were not taking in the amount of revenue they were taking in weeks ago. having been in 9/11, this doesn't feel like 9/11 in terms of the position of the industry but in terms of the demand loss. they have fewer competitors now. they've had 10 years of profitability and strong balance. that doesn't mean they need this money but because of the extra liquidity. just because it is there doesn't mean it is also taken.

also included in all of this is a proposal for two years to not pay the federal exercise tax that airlines pay on tickets to the government the reason the airlines proposed that piece is to essentially rebuild some of that balance sheet to that time >> the debt is idea but better than the liquidity that is important. >> jim, we want to bring you back into this talking about the loans and airlines being hard hit. you've got headlines focused on how this pandemic is going to test the limits of how much the u.s. can bare right now. we've got a lot of debt. what will this look like when we get through the worst? >> talking about the $750

billion bailout and loan guarantees i don't think we can get too cute with this just giving cash is not a bad thing. we have to put compensation for sure, certain pay raises buybacks we are making this complicated make it fast and simple if we end up at 100% gdp that shouldn't be the concern right now. >> the other potential bailout the fact that boeing is seeking fund and aid from the government not just for itself but for the supply chain how essential is that going to be when you see the selloff in the stock and the market just this week, it is a concern. >> as we all know, boeing was --

has been suffering from an earlier issue before the coronavirus with the 737 max issue and problems which put a lot of financial strain on that company. people not buying their airplanes as well. boeing is a really important company to this country. they not only make commercial airplanes but a lot of military equipment. if we are thinking about using government funds to help support industry, boeing is certainly legitimately in that mix they directly and indirectly employ millions of people for a lot of products. a lot of which individual customers don't see. >> you make a key point there. it is not just about manufacturing, that it is national security issue when you talk about a company like

boeing >> we covered a lot there. thank you. coming up, the new york stock exchange makes a rare move following two positive coronavirus tests. an apparent milestone as china reports no new home ground virus cases. we are live with the latest when cnbc returns liking the now platform? every time it takes care of something for us, we celebrate. how often does that...

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the coronavirus outbreak has crossed a new threshold with 800 deaths attributed to the virus >> the new york stock exchange has announced it will temporarily close the trading floors and move to electronic trading on monday. this move after two people there tested positive. two members of congress have also tested positive the republican congressman from florida and amazon said one warehouse worker has tested positive that facility is temporarily closed for cleaning. jpmorgan chase has closed roughly 1,000 branches

keeping roughly 4,000 branches open but operating on reduced hours. tesla ceo says his company is willing to step up and make ventilators if there is a shortage his comment came in response to a tweet asking if he would repurpose a california warehouse. you can see shares of tesla are up 2.7% in pre-market. >> turning to the epicenter of the virus in china for the first time since the outbreak began, officials there reported no new cases of the coronavirus. going to eunice yoon what are officials there saying about this development >> morgan, they are saying that the infection risk is there but

that the worst appears to be over the focus instead seems to be on overseas travelers they are worried will bring the virus here the number of overseas capital has hit a record the government has become more strict about the quarantine. all travelers coming into the capital can be gauquarantines 14 days they will deport an australian national who was out jogging instead of staying inside. the rate of production of work for the services industry is now over 60% the most important firms of international trade, production

not tops 70% as they are trying to contain the virus and reboot the economy, there is concern about what the relationship between u.s. and china will look like. there has been a fierce dispute as you likely well know over the name of the coronavirus and also fee document of speech china has announced it is expelling american journalists about 13 will have to leave soon and a dispute over the vaccine, a race a top doctor here said the americans could be ready with a vaccine by september and china should be able to match that the media has been playing up that the chinese military has just approved a vaccine for clinical trials.

>> a key point i don't think we are anywhere near the fall outthout once thet is over. on deck, another day of volatile trading we'll break down the moves to make ilungncdi stock picks stay with us (woman) no matter what business you are in, digital transformation never stops. verizon keeps business ready for what's next. (man) we weave security into their business...

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markets are gearing up for another rocky day of trading the dow on pace for its worst month since 1987 now posed to open down 125 points, the vichl at the lowest level in over a decade as well going to our guest now, craig, thank you for being with us. the technicals here, perhaps

more than ever given that we don't have a lot to go off of. what are the technicals telling you right now? >> thank you what the technicals look like for me don't stop believing in markets and the fed. they are working very hard to address the issues and dislocations you are seeing in the markets. if you look at the chart to start out with, there was a big battle yesterday at about 23.25, 23.50. i would note that at this time, you've got close to 80% of the stocks in the russell below the lows we'll be thoroughly testing this support level today and over the

next several sessions. i would note at this point in time, this is the only fourth time in history i've been looking at these markets, we've seen our gauges at these low depressed levels when we get to these, you want to start thinking about buying stocks and what names have pulled back the big long term identifiable defense lines this morning, if you pull some of these charts up, you are pulling in huge long term identifiable support looking at stocks like regeneron, nike and more >> quickly now, tell me what the levels are that you are watching as we've seen the dow fall now to the lowest since 2017 >> in terms of the dow, i'll be

watching the recent close. and the battle line on the s&p 500. i would say any potential break below that 23.your next leveisl 23.40. >> cnbc is covering more after this

good morning, it is 6:00 a.m. the morning after the dow closed below 20,000 for the first time in more than three years other central banks to the rescue, the ecb and the federal reserve takes more steps of its own. coronavirus closures continue.

the nyse closing its trading floor. thursday, march 19, 2020 you are watching cnbc special coverage good morning, everybody. welcome to "squawk box" on cnbc. i'm becky quick with andrew ross sorkin and joe kernen. after the ecb came out with that big move right now, the dow is indicated down about 121 points. yesterday was a day to be hold we ended down more than 1,300 on the dow. most of us had breathed a sigh of relief be