s&p 500 including being led by sectors like consumer discretionary and in light of the enormous central bank stimulus, we still have the treasury market and the yields elevated and the dollar is still pretty strong, as well and we'll have to see that calm down, as well we're out of time here that does it for us. ♪ ♪ cnbc's coverage continues of the markets in a time of crisis and another record breaking day on wall street in mean ways. good evening, good afternoon, good morning, wherever you might be, everybody. i'm brian sullivan thank you for joining us on cnbc perhaps a glimmer of a positive sign in the stock market today the major averages closed higher and not by much, we're not going to overdo it and compared to what we had in the last couple of days it was a sigh of relief for many and the dow finished up 188 points and technology did better and the nasdaq up 2.3%. among your big winners today,

mcdonald's, disney and goldman sachs. today's move higher though, putting not even a dent into this week's losses and the dow is down a staggering 12% just since monday once again, a big story, energy. check out oil. this time the opposite of yesterday, surging 24% that's its best day ever the u.s. government considering some political talk or action to get in front of that saudi-russia price war that's going on and flooding the market with oil and we'll have much more on that during our big hour straight ahead, but first, though, let's talk about this historic moment at a time for investors and trying to figure out what you should be doing right now with your money in the short, medium and long term and joining us is scott maynard, and one of the few who expressed worry about these markets even before the health scare, scott i would imagine your portfolios are holding up pretty well if so, what are they composed

of what does scott minerd know right now? >> we've been invested pretty conservatively mostly in u.s. treasury securities and some very high quality securities in corporate bonds and asset backs, but really, we try to stay as close to the sidelines as possible, but that's changing for us right now given where the interest rate spread between u.s. corporate debt and treasuries is, the bond market has traded cheaper than where it is rid now for credit securities and corporate bonds and this is telling you we're in the value zone and we are starting to selectively look at picking up some value securities. >> what is a value security

these days is it bonds? is it stocks is it gold is it chicken stock? >> to be honest right now i think it's more in the bond market than stocks i do believe we have another 10% to 15% on down side from here on stocks the economic data is just starting to come through the earnings data will look really bad for most industries so, brian, our drawdown from yesterday was around 35% from the peak that doesn't compare to the draw downs we've had in recessions in the past and those drawdowns were typically between 40% and 50%. so those stocks are getting attractive to some degree. you know, i think there's still some risk here and in the places where we're seeing forced liquidation coming out of mutual funds and hedge funds like in

municipal bonds and selected asset-backed securities and those are the places where you're finding real value where you're getting paid more for the risk than you're actually taking on >> i want to show our viewers right now a long-term chart of the s&p 500 and everybody has been working hard and a shout out for them getting anything done these days and it's been great. this is a chart ask i don't know if you can see it, it's basically from 100 years ago and it shows big drawdowns on the s&p 500. 49% in 2000. 56% in '08 we are down about 30% now. is that one of the things you're looking at to say there's likely more downside in equities? >> absolutely. let's assume this isn't as bad as the financial crisis. that's a big assumption, but look at the drawdown that you got back in during the 2001 and the 2002 recession, 49%, back in

'74, 48% we were only down like i say a little over 30% at this point. so we don't even have to get through the financial crisis level, but you know, brian, to be honest with you there's a good reason to believe this is potentially worse than the financial crisis and at this stage of the game we should be having more caution in our approach can making sure we're getting investment that pay you to take on the risk. >> stocks went up today a little bit. volume heavy again, but we didn't seem to have that market chaos, although i will note a lot of the bond funds that i watch that i've been talking about for a while now, they also fell today was there anything in the market internals that you saw, scott, that gave you a reason to be a little bit optimistic? >> you know, brian, in the stock

market, not much the one thing i would say is because of the forced liquidations we're getting now out of the mutual funds, the hedge funds and i am starting to be more positive and one of the things i've been positive about is i'd like to see capitulation ask it's capitulation is find me a bit at any price and we have planet in the selecteded parts of the income market i haven't seen that kind of panic in the level of stocks, to be honest. >> down 3,000 on the dow was not the panic? >> well, brian, it's 10%. >> that's a lot. >> and the panic -- look at the stock market drawdown of 1987. we were 20% down in one day. so you know, i don't think we've had enough pain here yet and too

many people are talking about bottom fishing and bill ackman who i have a great deal of respect for is a good friend of mine is talking about a bottom i don't know that i see a bottom right now. >> ray dalio who you probably also know was on cnbc and he thought there could be $4 trillion worth of corporate losses in the market do you agree with that does that number seem high to you and if so, what does that do to credit and those equities >> well, look, that number doesn't sound too outlandish at all. i think that basically just tells you you have more downside for both corporate bonds and stocks, but one of the things i'll say is again, i'll go back to the comment i made earlier, we arein the value zone here that is things are getting cheap, but one thing i'd like to

remind people is value is a poor timing tool. so markets often overshoot more than we expect them to and just because they're cheap doesn't mean they can't get cheaper. >> the president said he's okay, basically barring companies from buying back their own stock if they receive some sort of government help, aid or a bailout. do you agree with that >> i do. i would take a different approach to it though. let's choose boeing as an example. they say they need a $10 billion worth of guarantees for their debt if you went to a bank and you said i want a guarantee for my debt they would charge you an annual fee, maybe 50 basis points of 1% and i think that's what we should be doing, but in addition to that, i think that

we should say, look, in order to get this facility from us, you'd have to give us 20% of your company in warrants meaning there are essentially options so the idea of us buying stock is probably more risky than we need to be, but you know, i think the treasury is being called upon to act as a distressed investor and the taxpayer serves to be compensated as if it were a distressed investor. so maybe we get steve schwartzman or someone to run the treasury. >> the head of blackstone. so you think we should take stakes in these companies like warren buffett does. >> exactly but i would even do it in a lower-risk fashion and i would rather take more rather than let us write checks into the equity part of the capital structure because if we can get senior debt or claims on senior debt,

the down side in a worst-case scenario is not as bad as having equity wiped out >> there's a lot of people i know and a lot of people and the viewers and they might be watching at liairlines and the rank and file out there who need a job, but it is a debate right now that is starting to be fired up airlines spent by some measures $3, $4 trillion on stock buybacks over the last decade, boeing, 40-plus billion or so until they stopped their program last year. do the airlines deserve a buyback after spending all that money buying back their own stock or a bailout, i should say? >> i mean, look, that's a real political conundrum. the bailing out of the financial

services industry and other companies like general motors in the wake of the financial crisis has proven to be political poison for a lot of people in washington, and so my view is that it is probably an essential evil in order to maintain our economic system as it exists today to do something like that, but i think that it should be very carefully crafted to basically not reward people who took on risk and then expected the taxpayer to bail them out and that's why i think saying to a large company, yes, we'll help you, but we want 20% of your company in exchange for that or 30% is a way to justify that we're doing what's in the best interest for the taxpayers and one thing, brian it sounds very similar to t.a.r.p. t.a.r.p. was a moneymaking

exercise the u.s. treasury made money on the t.a.r.p. program, and i would look at this in the same fashion that warren buffett would or steve schwartzman i said great, let's find out ways to make money for the taxpayers. >> i'll leave you with this. do you believe that the best stimulus if you want to call it that is going to be what secretary mnuchin floated, sending direct checks to families that have been impacted >> i think it's better than a payroll tax cut. >> you don't have a payroll, you don't have a payroll tax. >> exactly, right? but i think it's -- it's probably not the best approach and i think it would be more powerful to increase unemployment benefits and extend them for people that are unemployed because for people who are not unemployed to be getting an extra check in the mail every month seems to be an

inefficient mechanism to use to allocate taxpayer money. i think the money should be directed to the people that need it by the way, my biggest complaint of the financial crisis and how it was handled is it didn't address the issues of the common person and main street and we need to make sure this time that we're addressing the issues of people who need help and not come out of a program here where we make income inequality and wealth in, quality even worse. >> scott minerd guggenheim partners thank you very much. stay safe. let's bring in three others you know so well and need to hear from on a night like tonight guy adami, tim seymour and dan nathan you heard scott say that just because things get cheaper doesn't make them a good value >> yeah. we've been saying that for weeks now. i respect scott a lot, and he's

sort of echoing what we've said, if you watch the show and hopefully a lot of people have, when the market was down 20% i know categorically, you can make a very cogent argument here that although the stock market is cheaper, stocks are not cheaper and stocks can be more expensive than they were at the time so i agree with them wholeheartedly, you know, just because the market is down, whatever it is now 29% or thereabouts, whose to say that stocks are not more expensive today than they were a month or so ago? >> i agree with that and it doesn't mean the market can't trade higher from here and it doesn't mean there weren't some encouraging sign, but if you're asking me to comment on what he just said i wholeheartedly agree. >> tim, we showed that long-term chart back in '08. the market fell 56% in 2,000 mouse and it was 47% or so back in '73 during the oil crisis the markets fell and do you think there's more downside here

in the broader market. >> we still have so much uncertain owe leverage and the corporate system at this point and now quickly your revenue stream is cut down to 40%. in some cases it's below that right now and leaving aside the travel industry and the leverage exposure in the banking sector, et cetera. to me this is about where we came into this and part of this is the positioning of markets which were priced to perfection and then some. we spent a lot of time talking about if companies had the government and the mandate is they will not be buying back shares and if you think about the growth in s&p earnings over the last five years, 30% to 40% of that came from share buybacks and so you had an even more overinflated s&p the velocity of this move is what's made this one of those moments that's beyond anything we've seen since the financial crisis and at times it exceeded

the financial crisis and some of this is a combination of the excess leverage that was in the system, and i think the central bank was encouraging, taking risk and grossing up your portfolios scott minerd and other people and i talked about this and the amount of gross leverage in portfolios is something that needed to come in drastically. so i do think we -- we've re-priced an enormous amount you have the have and the have notes in this post-virus economy and i do think that there are companies for the next foreseeable future will take three to four years during the actual earnings profile. >> dan, did you take anything positive away from the market action >> we have the giant options expiration coming tomorrow and i wonder or i fear if today was a little bit of the calm before the storm. >> fridays have been particularly will have till. when you asked me about today

and the price was able to close up a little bit and it's a herculean task a lot of us were looking at the s&p futures locked down at one point so they did a lot of heavy lifting accident other one, day was talking about this a lot and just the movement in the ten-year treasury yield and that's probably pretty good and i don't think anybody wanted to see too much more velocity to the upside off of that low last week so i think that investors would be really happy with a whole heck of a lot with nothingness over the last couple of weeks and let's get more visibility on what the fiscal packages look like and the key word there, packages, plural, because one, the market hasn't taken that too well, but we need to know what else comes with that to me, this is pretty decent

action and it's nothing, people. you have them four times a year, okay >> so the point here is that expiration will cause more volatility and he likes the price action ask no cause for alarm here upon how are you we tackling this crisis what is the visibility on the fed and what is congress and the president doing and that will step the downward will have tillity. there's probably a percentage of the population, i have to tune in to cnbc and welcome people realize the market will bottom out before the worst of the bad news, whatever the bad news it might be, the financial market will give us the signal that not everything will be good in the short term, but the market will fall and rise before the peak of the good or bad news where do you think we are in that cycle

>> yeah. i agree with that. listen, i wish -- you know, i'm not arrogant enough to answer that question and i'm not suggesting anybody on the call is, but i think god rest the soul of mark haynes and within a day or two hoe called the bottom in 2009 and respectfully there are a lot of people trying to take over that throne, and i'm not going to be one ofe called in 2009 and respectfully there are a lot of people trying to take over that throne, and i'm not going to be one of them, and i think you'll see a capitulation day that feels bad. we've had ludicrous days that have felt awful, but i don't think we've seen the real capitulation day what i will say on the encouraging note and we talked about this for months. the russell, and the iwm never verified that all-time high in the s&p 500 and we were concerned about that, but today on a genuinely benign day, you have the russell down 40% in the course of a couple of weeks was up 4% and i take some solace in

that and i take encouragement that the bond market seems to be slowing down and stabilizing whatever the yield may wind up being and i think that's encouraging as well and in this environment you can absolute see where the dow jones drill average is down 30%, but that's the headline, but i don't think that's the end of this thing that's just my opinion. >> tim and dan sit tight and we'll come back to you right now i want to go to washington because lawmakers are reportedly moving ever closer to come up with another aid or still laws package and let's get the latest on that with kayla who is in d.c. >> we are expecting mitch mcconnell to unveil the republican version of the stimulus package and begin with negotiations here's what we know so far is expected to be in this the treasury secretary said it will include payments of $1,000 to every adult and $500 for

every child. they're discussing a qualifying income threshold and small businesses making payroll and loans to what mcconnell calls nationally important industries, but they will not, he assures, be bailouts. >> we're not talking about so-called bailouts for firms who made reckless decisions. nobody is alleging a moral hazard here. none of these firm, not corner stores, not pizza parlor, not airlines brought this on themselves one company that lawmakers suggests privately has been rec sells boeing after a year under fire for safety and technology lapses, restaurants, hotels and other main street businesses have been side lined by an active got. this is the view on capitol hill while boeing is embroiled in a crisis of its own make on capitol hill and at the white

house a potential rescue of boeing is being compared to aig, the insurer who used cash from customer policies to load up on toxic debt and needed a lifeline from the government which the governmenty gave it in exchange for an 80% equity stake and replagues the entir replacing the entire management team at the company and he would support tying strings to some of these packages to make sure that the government got these deals on his own terms and the question now in order to rescue boeing what terms is the u.s. government going to demand >> maybe taking the stake. thank you very much. kayla tausche in d.c do you believe that a, boeing deserves some kind of aid package and b, if it does, should the u.s. government bein come a stake holder, basically a seat at the table. >> if you think the u.s. airlines is want of their doing. it's not at boeing's doing the stock was trading at $340

and if the market is a weighing machine and a voting machine, boeing wasn't seemingly going out of business in what is still a very difficult 737 max story for the company and boeing's problems right now are leverage that is coming from not selling any to companies and airlines collecting fleets and no longer revenue. it's more important than its commercial aircraft business and i think absolutely boeing is not only going to be saved, but i don't think boeing in the context of not planning the pizza parlor and not planning the corner deli, boeing shouldn't be blamed for what's going on in airlines in terms of buying planes in a traditional format >> we know they have a lot of work to do and even in the best place market scenario, they were hoping to get back in call it

late second quarter and late third quarter and they have gone in the other direction with that timeline and they're trying to get ahead of the faa and to me, when i talk about boeing in the context of all of this they are a domino that's falling and as a function of what's going on in the travelworld. >> and i want to get to dan in a second we have breaking news on boeing. for that, of course, let's go to phil lebeau in chicago >> nicki haley is opposed to a government bailout which is what boeing is pursuing in washington, a $60 billion bailout that would not only be for boeing, but for the aviation

industry overall nikki haley who has been on the board of directors for two years is resigning of the boeing board of directors effective immediately and i am opposed to the bailout and if we're going to go down that road i do not want to be onboard >> do you see the value in boeing >> the tens of thousands of employees and the hundreds of thousands of people in the supply chain and the fact that it's one of the u.s.' largest exporters and there's value in the airline industry, in the cruise industry and the auto industry and all of these businesses will need tobacco bailed out because it's our way of life and the fact that they've been bailed out before and as scott minerd called it political poison some 10, 11 years ago, it doesn't matter here because we are in battle for our financial lives right here and all of these companies need to be savid and think it is important that if you're looking at boeing that it is at $95.

no matter who bails it out and warren buffett or the government and that $958 be less when the bailouts happening right here and that's why they're not rallying on supposed good news and look at how the bank stocks exit about who will be bailed out and why? it doesn't really matter and we had the backstop and i think that you should be prepared for that >> one political force out and let's not forget, caroline kennedy is still a member of the boeing board and obviously someone with deep ties there let's talk about it. at some point the companies are trying to hang on to their dividends and i get that in a sense and the stocks who are down 70%, do they let the dividends go or do they hang on

because they fear it would collapse even further? >> we've seen that with ge and other companies over the years that are dividend payers almost to their own detriment and it was as though it was all about and of course, they cut the dividend look at airbus' chart, okay? they didn't have plane mishaps and they had done the exact same thing. i'm not in favor of bailouts and i used to walk around with a t-shirt that said where's my bailout after the 2008 crisis. i do think if we're calling it that moment where you have the unique force major situation as related to this virus. anyway back to where we are and share buybacks it is very clear where the eps and the s&p was coming from and engineering earnings is something that yo get the

c-sweet fade and that's something that we have to be wary of. that corporate tax cut was something that largely went in terms of buybacks and dividends. it's something that, absolutely, and you can go to industries. >> guy, what are you looking for tomorrow >> i tell you, the boeing conversation is fascinating and i'm with dan and tim it's probably the single most important company in the united states and i'm not a cfo and a politician, number one number two, out of many fascinating things today and dan flagged this in the call earlier, and people are saying what's wrong with gold and the gld was down 2% and i get it and look at gdx. they were up 8% and i've not seen a divergence like that in those two things maybe ever. i'm saying ever and i'm sure there will be someone that will be at me and that's fascinating

and i think that speaks for a couple of things, but don't discount gold right now just because the gld was down and that's what i'm watching, brian. >> one final comment to you. >> into the close, it was still green and maybe expect some weakness on the morning and after the opening and if we can do again what we did today is come up from the lows and kind of hang in there, close green and have yields not go too much lower or too much higher and then we can set the foundation for what could be a nice little rally for a couple of weeks and have a cooloff period and that's what we need right now >> jim, guy, dan, thank you very much while stocks did bounce higher today and the big stories as far as bounces go was in the oil market and oil handed in its best day ever and still on pay for the worst month ever and basically gained back what it lost yesterday and is still at $25 a barrel and "the wall street journal" reporting that the government could intervene

in the oil war between russia and saudi arabia mike ko, you've been a trader prior to now, what is your take on the bizarre swings for oil in. >> i think the most important thing is we need, it was materially, for an industry we're in very deep trouble the price of oil we usually look at is wti, brian, i know you have a lot of experience in the energy business and the other benchmark for crude that we talked about is for brent and for quite some time over the course of the last several weeks even before the most recent, very sharp decline is a demand and struck irrelated to the virus, we are already seeing big spread being made and it would widen and it has done that, but

i think people need to understand that this is a storm for domestic oil and gas and it's a perfect model for economics on how supply and demand work and it is an easy one when it comes down to this the world is producing tremendous amounts of oil and the united states is the largest producer in the world. we're producing 13 million barrels a day or so and that's up from about 12 million a day or so, and less than 12 million in the same period in 2018 meanwhile, russia and sawed rud arabia and the rest of the oil-producing world may have reached some consensus on production and they basically gave up on that and the saudis are talking about they've increased the product by 12.5 million barrels and thought this production, and the world uses a hafl million barrels of oil per day and about 10% of

that, probably air, we'll see a huge disruption in demand there by as much as 30%. you start adding these things and you see a lot of supply and demand, and it's still strategic petroleum reserve which had excess capacity of just over 70 million barrel, but if you start talking about a supply demand shift in the neighborhood of 5, 6 million barrels a day, you're going to start running out of any available storage and that's when you get into a situation like the one we find ourselves in right now, and i'm not sure that today tells us that it's all over >> yeah. it's been truly incredible moves and maybe we can get russia and saudi arabia back to the table and the dogs have left the doghouse mike ko, thank you very much think, for more on today, the markets, what's ahead, and the coronavirus, tune in tonight to our special report "markets in

turmoil" 7:00 p.m. eastern coming up, one of the big moves from citigroup. >> one of the banks and chris whalen is here and breaking news 'll irbnb and their funding and weget that from deidre bossa who broke the story. that's next. a golf course is designed to be difficult. 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.

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sgroo welcome back let's get you up to speed on the global viet of the coronavirus frank collins is back with that. >> there a a sharp increase in coronavirus cases in new york city the latest 3,615 positive cases and 22 deaths. it's an increase of more than 1100 cases since governor andrew

cuomo's update at mid-morning. the head of the national guard says he expects tens of thousands of guard members to deal with the outbreak he says there are still many in reserve. >> there is no need right now to have 450,000 guardsmen on duty in any given state as states need the national guard to react to this pandemic, governors have the authority to bring them on on active duty as there are tasks and purpose for them to be used. >> and staff workers who are sick with covid-19 helped spread the virus among elderly patients at several facilities in seattle. that's according to a cdc report and it faults the long-term care facilities for not having enough personal protective equipment or sanitizer for its workers. the company has not commented. as always for more coronavirus coverage head to cnbc.com. back over to you >> thank you very much, buddy.

be well. still ahead, a slowdown on the swings can take a toll on silicon valley's big plans and coming up later, a silver lining in the market madness and we'll tell you what's going on in the c suite which can be some good news for all you nervous 'rtrngo d e ow wee yi tenthsh every day with a little bit of something, folks we've got it for you, stick around shouldn't you pay less when you use less data?

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because being effective means getting results. >> welcome back to cnbc's continuing coverage of the markets in turmoil and the big banks getting a bit of a bounce today in the market. regional banks largely rose today and it must be cold comfort. most of the stocks are on pace for the worst week ever and some down 30% to 40% this week and let's talk about the banks and what they're telling us and chris whalen and someone who is right in the thick of it 12 years ago when we come a different issue with the banks chris, it's good to chat with you, i guess what is the move in the bank stocks told you about their health >> i think the exemplars, j.p. morgan and u.s. bank are the ones i follow. i own u.s. bank have stabilized a little over book value because people are doing the math and

they're thinking about loan losses and earnings, and i think at this point they're willing to buy them i've been buying some of the preferreds which has sold off quite a lot and they're a great value. so if you don't believe the world's going to end, i would take a look at some of the banks because they've sold off considerably and city is below half a buck and the goldman's down below six times book and there's some value here and it just depends on your view of the world and your time horizon. >> goldman sachs has truly been an incredible story and a $250 stock and the one thing i will know about this time in the market is that the market is active yeah, the economy is going to struggle and we're probably in a recession, but some of the banks do they seem like they're unfairly punished because everyone whoi kn i know on wall street can get their computer

working constantly it's not so much that they're punishing them, brian, it's just that we don't know what to do with these credits and a month ago we saw the credit costs trending up a little bit and they were not a concern. now all of a sudden credit's in your face and you have hundreds, thousands of companies out there that have effectively been downgraded and their street doesn't know what to do with these credits because they don't have any guidance that are a year or more from the rating agencies to catch up to this, so it's going to take time to work out what value is, but i've got to say, if you look at the exemplars in the group it's hard not to want to own j.p. morgan at book value. i may even go buy some myself because i think it's a nice surrogate for both large and small banks, but there are some great examples, and american express is one of the best performing banks in the united states and it's trading down at

three and a half times book. schwab, too, when they announced the e trade transaction it was at three and a half. for people who like financials this is an interesting situation and i think today is typical of what we're going to see for a while. you know, when i look at something like an lqd and it's an investment-grade bond etf and one of many, but it's the biggest, so i'm going to throw that out there it's down 17% this year and really an unprecedented move for a bond etf which the whole selling point is stability and a little bit of income do you believe that things like this are falling because, to your point we're going to have a wave of credit downgrades which means forced selling by certain entities that cannot hold certain levels of debt >> that's right. and you also had a bunching effect, brian. you had an enormous number of things that were investment grade because that's when we get

the highest equity return and this is the wall street model, right? so now the environment's changed and many of those credits if they came to market would be high yield and they'd be junk and they'll become junk soon, so the market is aware of this. they just don't know quite what to do with it which is an issue by issue basis. >> and occidental got moved to junk by moody's. >> chris whalen, i have a feeling -- >> i have my portfolio time to see it >> i i'm trying to find some levity i'll put some easter eggs, up. >> coming up, the coronavirus drying up silicon valley's deals and what's next for the unicorns and wanna be unicorns? how will this affectunng fdi in silicon vally? we'll focus on that and airbnb coming up. you should be mad your neighbor

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we've got a big interview on cnbc tomorrow. the new ceo of mcdonald's sitting down for an exclusive interview with us on cnbc, closing most of their company-owned stores to everything, but take out, pick up and drive-through traffic and what is mcdonald's seeing and

what are they doing about their workers and catch that tomorrow at 3:00 eastern time. >> we've seen our share of historic moves on wall street, and the wild swings are sending shock waves to the heart of silicon valley let's get more to kate mooney on how silicon valley is starting to run dry and what the heck is that painting behind you, kate >> that's the question of the hour it is lake tahoe it's a post are. pretty bare bones back here. venture capital. those investors are telling me a lot of deals are on hold until we get past the coronavirus uncertainy and valuations may take a hit and one factor at play and the in-person medians and management teams can't happen it's hard enough to build trust over zoom meetings and that might mean they won't take the capital investment and sequoia calling coronavirus the black swan of 2020 saying private financing could soften significantly size it did in

previous downturns and other firms warning of cuts to valuations and investors aren't as comfortable betting on future growth they're changing their outlooks in the wake of we work and putting emphasis on profits and none of it bodes well that needed to raise money this quarter. another factor credit markets and many tell me they won't be using debt in the near-term and of t investors are describing this and it's worth noting, brian some high-profile companies square, stripe, uber and instagram were borne out of the 2008 financial crisis. back to you. >> kate rooney kate, thank you very much. well, there appears to be one big exception to the funding slowdown deidre bossa broke this story around airbnb. deidre, what's the news on airbnb. >> what kate says totally accurate and they say for high-quality companies with paths to profitability that are not burning through cash, they

will always be able to get funding each in the depths of the financial crisis and they're examples from past time, but airbnb could be one of them and two sources familiar with the matter telling me airbnb is considering raising in the current environment and key is under what valuation the home sharing start-up has been hit hard by the coronavirus outbreak and they've had to expand their cancellation and refund policy and their planned ipo for this year in doubt, but sources say that it is fielding interest from a variety of funds from venture capital to private equity and sovereign wealth funds. for airbnb they have $3 billion on its balance sheet plus access to $1 billion in the line of credit and ron conway, in silicon valley and a very early airbnb investor and he told me the start-up is more nimble.

he thinks the start-up is more nimble like expedia and booking holding and he thinks that if they raise cash that's an opportunity and it could set them up nicely for when global travel does come back it will make them even more nimble of course, brian, i said it at the beginning and valuation will be a sticking point and can i raise it at the next $31 billion. it also seems like with the news on uber, the tide will go out and we'll find out emperor maybe is swimming with cash and hely ilich wid. having cash right now is going to be king >> absolutely. uber had its ipo thankfully last year so it raised a bunch of cash and the ceo had to get on a call with analysts and investors today and essentially reassure them that they will not run out of cash by the end of this year if their rides decline by some 80% they'll still have some $4 billion of ample cash on their

balance sheet which if you think about it the tens of billions of dollars that uber has raised over the year it would have $4 billion left it showious how these companies are burning through money and you would think it would be very hard to raise money at the previous valuation it was once at $37 million and now it's 35 billion. >> you can read more of deidre's reporting on cnbc.com. she broke the airbnb story playbook, as we promised and a little bit of maybe good news in the equity markets and trying to end the show with a little something and it is so serious out there now. we'll have that for you coming up on "fast money" stick around. to managing website inventory... and network bandwidth.

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all right. welcome back there is a live look at the national mall in washington, d.c. it's not that cold and we have people out there running in shorts and t-shirts and if you're familiar with the mall and normally are it would normally be packed with people a lot of schools are on spring break. right now pretty much completely empty and by the way, i didn't even think about this, tonight is the start of spring and the equinox is or whatever the equinox is at 8:48 p.m. tomorrow

it will be spring and perhaps a reason to look up. we are closing the books on another wild day on wall street and tomorrow it could get wilder because as deidre talked about earlier an event called quadruple witching takes place when options and futures contracts takes place on stocks and index essex pies expire in place, thus the quad in quadruple witching more volatility in a volatile week and joining us is steve grasso, director of institutional sales at stewart frankel. steve, what are you expecting tomorrow >> so obviously, brian, you're going to get an exacerbated upside volume explosion, but you're going to have a little bit less than you would think because the s&p and the dow have basically postponed their rebalance and the ftse and the russell are still doing it so what does that mean? if you had all of them doing it, the volume would have probably

been exponentially higher than where you see it now, but you're still going to notice a heck of a lot of volume on the opening and the close and it's more geared to the close. so don't read into it and if you remember back in the end of february i was on the desk, you and i chatted and i said don't get so excited about the run-up because you have a lot of rebalancing happening. so what happens is people get in with the equities have to buy because everything is so beaten up and it creates an event that the fund managers have to add to the equity side and they're forced to buy equities because less a percentage of the overall portfolios what does that mean? they buy them at the end of february and it runs up 10% and they sold back off 27% i'm not saying they have 27% downside in them if they run it up tomorrow in the next couple

of days, but it's something to be conscious of because remember those levels you and i discussed, right around 2,000. so you have the 2350 level and you have to pay the pseudosupport and that's the old 2018 low and then you have the new low, 2280 in the s&p, but keep it round numbers. 2000 in the s&p and that is the most concrete support. below that, we get to the 1700 mark and let's hope you don't visit 1700 and i wouldn't read too much into the explosive volume that you're going to get tomorrow and the next couple of days you could have upside events happening and keep an eye on good quality companies that will be around in three years and the flipside of it is the companies that have poor balance sheet, brian are more likely to get bailed out see how those energy names and the airlines name, and the

hotels and the car companies, even, everything is around that and you could see some bailout on names that you don't think otherwise should rally. >> steve grasso. we appreciate it it will be a big day, thank you very much. every night we'll try to leave you with good news at a time when we can all use some and of course, we're doing it from a cnbc angle executives started buying their own company's stock nearly at or at record levels according to insider score.com. last week more than 1300 top executives got into the market small cap, energy, financial company executives they had more buyers than at any time in their history, even more than at the depths of the financial crisis and the insider buying is getting close to that level as well and it is now at its highest level since november of 2008 so who is doing the buying insider shows the companies with longtime execs like freeport-mcmoran, live nation and the biggest buyer is our

cnbc friend marcus doing insider buying they're not calling the market bottom and the ceos aren't perfect market timers and the ceo peaked in 2008 and maybe good news in the marke 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 other people are trying to make friends. i'm trying to help you make money. my job isn't to entertain but to teach. call me at 1-800-743-cnbc or tweet me at jim cramer to believe or not to believe, that