you, dan before we go, we want to check the futures very quickly i don't know whether -- responding to some of dan's analysis there, which didn't sound good but we're up about 171 points. we'll be back next week. thanks good to see you guys >> have a good weekend, everybody. stay safe out there. >> you, too. good friday morning. i'm carl quintanilla with jim cramer and david faber coming to you live from separate locations. stocks are trying for the first back-to-back gains in about six weeks. futures are up, though well off the overnight highs. as we see more historic fed buying, a gop relief package, huge mitigation efforts in california today and a second day of no new reported cases in china. guys, tgif, for one thing.

jim, it's clear that even though we had some constructive things happen tactically yesterday, sounds like you don't expect this bounce to last for long >> we're the most oversold we've been i guess you could go back -- some people say -- get some great stuff from mr. williams who is one of my favorite technicians, larry williams. i want to point out, he's done work which says going back to 1933 this is one of the most extreme panics ever. he wants to buy panics on the other hand, you say who's there to buy i feel that we're due for a bounce i don't know how much money there is there is to buy much more stock liquidity is a concern in every aspect of finance, at the same time any time you skip over the public health issues, you forget that right now strapped in san francisco, strapped in boston, strapped in new york maybe there's not just equipment. the nightmare is occurring

>> what do we make then of stei stifel looking for a 15% rally, gun gundlach not shorting. why are there these little pockets of not optimism but bullishness? >> somebody called yesterday in the lightning round about wendy's. wendy's was at 6, it went to 9 6? a lot of companies are priced for insolvency or were two days ago. i think when we got to those levels, people say let's take a fly. maybe if the economy gets restarted, a lot of these buys are we have to start thinking about when things get better here's what we have to do. i don't mind that thinking the problem is we're not getting better i think we're getting worse. as we get more knowledge of things, one of the most informed discussions i watched last night

was on facebook when mark zuckerberg was interviewing dr. fauci. we're still trying to get our arms around the idea that the younger people are infecting the older people we're not yet geared at all for what happens when the older people go to the hospital and there's not enough ventilators those are the stories that will define this weekend. i don't think they make is so you want to buy. against that, it's the most oversold it's been in terms of the recordkeeping. yeah absolutely you don't see the credit problems in the stock market dave is following the credit side it's really a mess >> yeah. listen, you have so many different issues as you know, including liquidity. it's a mess in some areas. you know, jim, to your point, right now when i speak to bankers or management teams or those who were advising them, it's just survival mode. that's what we're talking about right now. >> yes >> figuring out what we need to do to make sure we survive, to make sure we get through

whatever this is that's one of the key questions and variables. we don't know how long and nobody can seemingly answer that definitively at this point. i guess as we get closer and closer to it, we'll know when we're there. >> yeah. there's things we know that have to happen. test, test, test people get back to work. if we don't test them, we don't know they're healthy we need to create some demand in the system boeing is the paradigm in terms of corporate america where there is demand. all they want is liquidity there's another dead weight part of the economy, whichis the huge service economy that is driven by hotels, restaurants, retail i don't know there's the black hole of the system people talk about a trillion dollars. that's a nice wishful thinking number if we can get the malaria pills and they work. or the regeneron drug works. or the gilead drug works otherwise one month is fanciful

and a trillion dollars is tiny >> "60 minutes" on sunday is going to take a look at the race to develop not just treatments but vaccines as well i think they'll pay a visit to the first clinical trial, jim. yesterday on twitter, this was jarring to me. you said i don't want to be too dire, but one of them better work, you are referring gilead and regeneron because we cannot shut down the country for months and then the "journal" op-ed >> we have to decide literally -- there's triage like everybody who is over 80 in italy. also, by the way, another strain of it over there that's far worse than the strain we hear about. everybody over 80 looks like they're being triaged.

that's who's dying you have that side we could be like italy and may not be an issue. the other side is how many peoples lives will be wrecked and the tension, the pain, the suicide, the horror, the heart attacks that will be caused literally by the fact that people are out of work and depleted their savings versus the people who need the hospital beds to fet the drugget the dru. do we triage the people in the hospital who are in the hospital north of0 a 80, then put the ret of the country back to work if they're healthy, if they're not healthy they stay home until we find out whether the combination of the hydroxychloroquine and the z-pack, the test in france, you need to see if that's working. you need to be optimistic but also realistic and also someone in the white house or congress to say do we -- is too much

damage putting the country out of business? you need to be a fill lophiloso more than a doctor >> i hear people saying they're more worried about a collapse in the economy than they are about the virus itself and how you balance those two, and when we look back did we make the right decisions? one poorly executed not decision but series of events is the lack of testing i don't know if you watch those press conferences the way i do, but i am well aware that testing is still not where it should be. there are doctor's offices in new york that were administering tests last weekend and people still do not have results and

were told it would be until next week, which more or less defeats the testing process in the first place. the idea that somehow we're immediately able to get test results doesn't seem to be taking place in the real world, not to mention all the different anecdotes we see of hospitals low on equipment and trying to make do with what they have. we have to deal with those things and let's hope they can figure out an anti-viral and get it into peoples hands quickly enough so that it can lower the fatality rate and allow everybody to take a deep breath. >> yeah. testing is probably the ultimate hope for the economy barring the giant break through when it comes to science one thing that len schleifer, talking about regeneron, clearly maybe the most focused on trying to get something done here they need testing to see if someone is currently infected with the virus that's talked about publicly, and they need testing to see if someone already had the virus and has recovered.

that's a different set of testing. they can't do this with just one test there's been no public discussion of this this is the standard seri serialogical test. we need two tests, you need the test that says you have gotten over it, you should be at work that person should be at work. and then if you have the virus, that person has to stay home we need people to go back to work in a responsible way without it, we have no demand and then paychecks have to be put in the hands of people who work at restaurants, hotels. >> that story will change beginning next week as all of those test kit makers we've been showing you on the screen roll out tests in the hundreds of thousands, and we'll see that numerator, that denominator rise will that be a positive story or not? >> i think that people will

shrewdly say this is positive because you're getting our arms around it. i don't know if the stock market will be that savvy about it. a couple days ago, g3 drops to two and change after being at seven. then reports an unbelievable number and back to seven the next day a lot of lottery tickets like that again i think when these numbers come out, people will say i have my money in my 401(k), i'm 57, 67, whatever age i have to take that down because i'm running out of money and while they talk in washington about punishing the new ceo of boeing in order to give him money, what they have to do is give me money and -- there's not enough a trillion dollars is a very small thing. that's like saying we need four aircraft carriers. maybe we need like 30 aircraft carriers without analogies to world war ii, we're kind of thinking way too small. this is nis not desert storm, wd

war ii this is a mission-driven government which is basically saying we have to get the testing done, get the vaccines on the road we have to get the mon money in the hands of people in industries where there's no demand like the restaurant industry >> well said let's bring in danny myer of union hospitality group. it's sad to say, i think we all have a sense of what's happened to business in the past couple of weeks, essentially going to zero you made an early decision to close. since then you announced plans, if you buy a gift card, all of it goes to your employees. i'll ask you for a characterization of what's been happening but also your best ideas for solutions right now. >> yeah.

first of all, the conversation you guys are having is really, really helpful it's a two-pronged issue like 9/11, for example. once we got over the emotional trauma of what had happened, at least our industry could stand up and feed first responders, feed families, encourage the public to come back and stimulate the economy by going out to eat and also stimulate emotional wellbeing of society we don't have that tool now because there's no green light that says it's time to go back to work. therefore it's time to go back to eat and we cannot wait to be in that position but it's truly right now as if the entire restaurant industry, which, by the way, there are 600,000 restaurants in america

we think about huge industries like airlines, automobile manufacturers, as well we should, we don't often think about restaurants because there are so many independent mom and pa restaurants that you don't necessarily know about how many there are. when you multiply 600,000 restaurants and you say if on average each one of those restaurants only had 100 workers or 50 workers, you can see the magnitude of the problem in terms of peoples employment, in terms of products that are not getting bought and sold. and i would say, you know, a running theme throughout your conversation has been the emotional, fear part hospitality is a word whose root is hope. one of the real reasons, besides employment that we can't wait to get back to cooking for people and welcoming people to

restaurants is that people being with people is hope. that's one of the real tragedies of what's going on what do we need? we have to recognize this is a two-pronged issue. it's safety and health, have to keep people alive or all bets are off. then it is rebuilding peoples lives. i would start with the people themselves even before the businesses it sure would be good if the government would freeze the obligations and cost structures that people have, rent, taxes, every one of the expense lines that restaurants have. it would be good to freeze that. i would actually spend more of the money taking care of the work force because a lot of the people in our industry work on a day-to-day, week to week certainly not more than a month to month basis and we want to make sure our

work force has been fed, has been -- has a roof over their head and is healthy by the time we need them back. i don't know when it's going to be, but whenever we do get the green light it's safe to come back to work, keep in mind it's going to take a good month or so to recruit our teams back and to get them trained before we can serve the way we used to >> because operations will have changed so much? >> operations will change, and we had to lay off 2,000 people, we want to fight another day, if we are not around to be solvent, what good are we to them if 80% of the work force is gone, yeah, we're trying everything we can to stay in touch with people via zoom

calls, emails, intra-company communications, but they're gone imagine spring training for a baseball season where on march 1st, instead of the teams starting their month of spring training so that they could start the regular season, imagine if the general managers of the teams had to start recruiting on march 1st and creating spring training at the same time. i'm not complaining about that i'm just trying to share a dose of reality i loved what -- i think it was jim who said that as soon as we can start to say who can come back to work, who -- for whom is it safe to come back to working i know that we'll start to see some green chutes in our industry the minute we hear that, we'll put people to work we'll start by cooking for people in our company.

then start to cook for people in the community. yeah, it won't be restaurants where you gather, it will start off by being take-out and curbside pick up, but we can't even do that in our company safely now until we hear that people can come to work without fear >> danny, you're so right. i enjoyed my -- the last night i was happy was my 65th at your restaurant thank you very much. danny, you were doing two things that people are not talking about. one, you're actually helping your workers second, you're getting rid of your pay i think that that is incredibly selfless, you have to be appreciated for that one problem that america has right now, is that they feel the bosses, the managers will be the winners, and the workers are the losers you're trying to do both my restaurants -- i'm struggling we laid off people early on

monday i think that -- i don't know if i have the wherewithal -- i think a lot of restaurant owners don't have the wherewithal to reopen you should speak to the notion of capitalization of most of the people it is a shoestring industry. you built a great empire, but can you speak to the industry where they don't have 1099 employees, can't get a payroll tax cut. the unreal nature of how little washington knows about our industry >> i think you nailed it, jim. this is what i was trying to say earlier, because we are such a disaggregated industry, it's one of the great things about restaurants, how many entrepreneurs got into the business, how many employees got their first, second, third job in our industry. we don't necessarily speak with one voice. and i think that the independent

restaurants in this country are finally coming together i was on two or three calls yesterday with a lot of independent restaurateurs who were basically saying how can we have a voice and how can we let washington know that this is a massive, massive part of the economy? i think andrew andrew ross sorkin's notion of government for all is an interesting one we should look at i want to make sure our industry doesn't get lost with respect to my compensation, that works for me, it doesn't work for most other restaurateurs. i never would want to suggest that that is the way an independent restaurateur should go it's tough times it's tough for the employees but also tough for people who have taken such responsibility for hiring people and putting a lot of people in the work force who

are now stuck with the bills i have not seen a lot of landlords stepping up and saying we'll stop charging you rent i have not heard a lot of utility companies saying we know you have no income but we won't charge you for gas and electricity in your restaurants until this thing is over so we need everybody to step up now. this is an economic and safety wartime effort right now i think we all recognize that. i want to put a plug in for one other thing. you guys over the last five years or so have been amongst the people that asked me and others about the wisdom of eliminating tipping in our restaurants. if ever there were a time where i feel like that decision is actually being reinforced as a good thing, for the hourly workers on our team who face unemployment as of this week, when they go to the unemployment

line, their compensation that they can show on their work2, because they were not paid adjusted minimum wage but a wage that accepted the fact there was no tipping, so it was way above minimum wage, that makes me feel a little bit validated on the decision we made five years ago to eliminate tipping >> i look forward to the day we can have the discussion again about the tipping policy when all the restaurants are open and a discussion now about forbearance up and down, which we have been talking about in terms of not being able to pay your bills take me out when we are through this, when we get to the other side what are your expectations for what it's going to look like in terms of how many restaurants are able to reopen, and whether or not behavior in some ways will be forever changed amongst people in terms of their willingness to socialize in the same way and patronize a

restaurant at the same frequency. >> i think people are resilient. i really think that human beings are a very social creature, social animal. that's one of the reasons that restaurants play such an important role just, again, think about what we've all been looking forward to we were in the process of planning graduation lunches and dinners, easter, weddings that got canceled for june. all the reasons that people come together just to celebrate friendship that's not going to go away for those restaurants that survive but here's what i would say. even before this, our industry for the last -- i'd say five or six years has absolutely been moving in a direction where because the quality of food available in fast casual and fine casual restaurants has -- and with delivery and takeout has been on the rise any way,

even without this, so when we come back, and we will, people are going to keep eating, that's a good thing people will not stop eating. the question is, where will they be getting their good food i'm going to bet right now that we will see fewer full service restaurants than the number that we went into this with and we'll start to see even more acceleration in the trend that already started with really good food that is available to be served as takeout, as pick up, quick service. i think that's going to be a really, really good category i cannot wait. i think that autumn of this year should be an exceptionally good time in our industry because there's going to be so much pent up demand to be with people. again, it all starts when some higher authority turns on the green light and says first of all it's safe to go to work.

it's safe to go out to eat >> right to that point, danny, fauci is on the "today" show this morning on how long americans will have to stay at home. going to be several weeks. i cannot see that all of a sudden next week or two weeks from now it will be over i don't think there's a chance of that. i think it will be several weeks. we keep talking about this idea of workers needing a place to go back to once they get the green light. for you, you must have run some models that has a date that says if it goes past this date, there will be no union square for us to rehire to >> well, what we're looking at is a little bit more optimistic than that, carl. so we're now down to 150 employees in my company. i can't -- i don't think i've been able to say that for probably 25 years. since union square cafe was my only restaurant before opening

grammarcy tavern they're tasked with building a bridge to the day that the sun is shining again what does that bridge look like? the bridge looks like creating opportunities for revenue for our company that are safe as of that moment. if in two months, if in one month we still have not gotten the green light that it's safe to cook food for people, even on a to-go basis or pick-up basis, i think we will find a way to do that as a matter of fact we already have a skeleton crew who is cooking food right now for a contract that we have with another business, we are obligated to do that very, very small crew doing that but that bridge could look like some entrepreneurial opportunities that maybe we have not thought of today we have kitchens, those are assets we have really good chefs, really good wine directors maybe we'll create a broadcast

network not to compete with you guys, but maybe we'll give cooking lessons, wine lessons. one thing the government said we can do is safely sell alcoholic beverages off premise. we have never been able do that before maybe ushgtv we'll find some way to create revenue as a bridge even before we get to the time that i keep calling the green light where we can all come back to work and do what we love doing, cooking great food and bringing people together it's just crazy that the thing we love doing is now the thing that we just can't do. we're looking for ways to bring hope back to our society >> danny, our thoughts are with you. we appreciate you coming on and sharing views with viewers this morning. thanks >> thank you all danny meyer. let's get a coronavirus news

headline update with rahel solomon. >> cases around the world are rising above 246,000, more than 10,000 people have died. in italy, a country of 60 million, cases top 41,000, the death toll is more than 3,400. that surpasses klechina. today spain became the second country in europe to report more than 1,000 people have died. officials are warning the health care system could be overwhelmed. here in the u.s., confirmed cases stand at over 14,000, and 205 people have died within the last hour, new york governor andrew cuomo tweeting that the new york tri-state area and pennsylvania will extend mandatory business closures, so this includes hair and nail salons, tattoo shops, other services starting saturday night at 8:00. out west, in california, cases jumped 21% in 24 hours prompting gavin newsom so issue a stay at

home order for 20 million people that includes all dine-in restaurants, bars, gyms, entertainment venues close as businesses close in california and across the country, layoffs mount stay unemployment offices reporting unprecedented spikes in initial jobless claims. federal data points to a 33% increase in claims over the last week goldman sachs in a note predicting that for the week ending march 21st, claims could be in the millions in other words, the largest increase ever and perhaps highest level on record. david, back to you >> yeah. thank you. those numbers conceivably are, as you point out, the likes which we will have never seen. let's talk stocks for a moment in the two minutes before we get the opening bell. jim, quick look at my screen in terms of stocks up for the year. just what i got here tesla's up netflix is up.

eli lilly is up. gilead is up and your mad dash is up. >> amazon. people are out of their bunkers. the analysts have been waiting for a one-up day to say some good things. there's a chorus of people saying you have to buy amazon. the world has changed forever. people realize they can buy many more things on amazon than they thought. i got home last night there were four packages from amazon that my wife ordered. all sorts of things that we would have went down the street to a rite-aid or walgreens why? because we want to avoid crowds. walmart announced a spectacular bonus plan i think, david, we come out of this sooner than other small businesses open if we come out of this, there will be three retailers, amazon, walmart and cost costco that is something that the government cannot afford to have happen

if it comes out that those are the three, can you imagine, david, what it means for this country to have three retailers? >> no. no it would not be a good thing in so many different ways, jim. you're right, they're dominant already. and certainly cementing that dominance conceivably given the highly unusual conditions in which we find ourselves. carl, we have an opening bell. over to you. >> david, let's get to the bell. final day of trading at the new york stock exchange for the week before they go all electronic. tom green is the vp of building operations at the nyse the global head of capital markets at the nasdaq there. in terms of today's activity, oil has been swirly today as the russians say we don't need anyone to intervene in our saudi relations after the president said yesterday that there was opportunity perhaps -- it's hard to know what he meant in terms

of restoring some stability to oil. >> it is interesting the president talked about filling the strategic petroleum reserve last friday. in some conversations i had with the administration, people are starting to think that under $30, we might lose our energy independence this morning, rusty brazil says that we are still going to pump 13.1 million barrels a day that's the exact opposite of what russians want we just seem to not know how to -- we cut back 40% in our capex budgets. now they're pumping from the permian, that will keep them in business if they can get it north of 30. i think the president is trying to figure out at what level do the people say he's not doing a good job and keeping costs down. we've seen gasoline below a dollar in some places, versus keeping this industry alive? this aerospace and oil are the two industries that are most

keeping our nation competitive and making it so it's strong one call from the president to saudi arabia says we continue protect you unless the oil floats above 30. that's the break even. 30 you have to get there. if not, we'll have a huge amount of bankruptcies. the bankruptcies will start in two weeks. they'll be stark and frightening to people. so the government has to get ahead of this. you have to get ahead on aerospace, on oil, on restaurant and retail and on hotel. >> yeah. oil reversed oh, darn it. >> you know, jim, you're right -- the restructuring is -- that's where there is a great deal of focus right now, as you say. it's -- you know, listen, my old

world of mergers and acquisitions, you have so many different people focused on what deals will actually close and what deals will be renegotiated, what deals will fall apart whether the banks will be there to fund or not whether they will claim material adverse changes, even if there wasn't necessarily something particular about a pandemic in the contract that allowed for it we're just at the beginning of that process >> right >> the beginning so many firms being hired to advise on restructuring. it will be an important component of revenues if we want to look at it that way for the advisory firms out there, a significant change from the fairly good pace that we had seen previously and advising on all sorts of other transactions that had little to do with the restructurings or bankruptcies >> david, if there's no activity -- >> guys -- on david's point about investment grade, the lqd down 10% in september of '08

this month down 20%. double the '08 decline, and you had gundlach yesterday saying the reason ig went down more than junk could be redemptions, but could be the market does not expect many of these ratings to stay ig. >> no. but there's a question, of course, jim casey raised it with us i guess last week, it's hard to keep track from jpmorgan, cohead of investment banking, this idea when you get that wave of downgrades, the high yield market, carl, is not in position to handle that kind of volume. high yield is closed right now for new issuance but in general, the difference in dollar amount from ig to high yield is vast. that's also a key question that we sort of have to keep an eye open for as we watch the credit markets and how they're operating at this point. it's an important component overall of all the different

markets. >> david, this is something that the president, with one phone call to the saudis would take off probably about 300 billion in high yield trouble. now, a lot of the oil and gas, you get a chesapeake, it's obvious how much debt they have. the president has to be focused on what can be done with phone calls today. get oil up a little. take that off the table. get the testing done get the credit line, some sort of line to boeing. there's 17,000 suppliers and 2 million people involved with that pick a couple of industries, save those, put money in the hands of people who they killed demand for if you own a restaurant and you're told to shut, why don't you get the business interruption that secretary mnuchin talks about? then get out there get out there like fauci fauci is everywhere. get out there. get out there. we probably want -- you want a simple solution? if you're over 60, don't go to work under 60, go to work

the president has to come up with simple -- ronald reagan-like totems the president is never going to listen to me or anyone else for that matter. i think it's very simple you have to make the call to the saudis, talk about how we'll ramp up with testing and do a mea culpa, just do it for the nation like fauci did yesterday talking to mark zuckerberg, we didn't have it all right. by the way, fauci and zuckerberg -- can you believe we're talking about this dr. you to zi,fauci, stop playie cough drop or something. >> you're right. fauci on the "today" show said we are rapidly getting to the point where we will have many, many tests out there virtually for everyone this is fauci this morning. early on it was not that way it should have been. but we're really now very much in the right direction, flooding the system with it >> look at that. >> that's constructive >> look at that. here's the 79-year-old man with

reg regis -- those for you in the new york school system, know that's a great school. first he admits they did something wrong. i like that. it's called humility second he says we do have hope here we're going to get these -- we'll get these tests to you obviously he makes no false promises he must be talking to roche, and then he says here's a timeframe. the best thing he did on facebook was right at the end. the whole reason why he did it, listen, younger people, we know you think you're immortal. i was immortal when i was that age. will you stay away from your parents and grandparents 60, go home. don't get near these cal-u youth, under that, go to work, we'll test you simple totems. the president has to learn to give hope without being false hope i'm instructing the president, i don't give a damn.

then he has to understand eisenhower, reagan, fdr, simple truths, rocks of truth that's how you do it you have to do it that way or all we say is rem this and that. no simple truths. too late in the game -- am i going to go back and get a phone call my mom will be angry with me i have to tell the guy how to do this thing i'm tired of the -- i'm tired of the way they're doing it >> one small piece of -- i'll call it good news, david china buying 756,000 metric tons of u.s. corn, the first major purchase under phase one when is the last time we talked about phase one other than fiscal relief? >> yeah. it's funny remember when trade was the greatest single threat to our economy or the trade war don't we all long for those days guys, listen china is starting up again

we know that it's funny yesterday i had a conversation with someone who advises on deals where the chinese are actually buying from latin america and from south america that's starting up because of course you also need to get the ships ready to go, things of that nature. they are starting to come back into the market for commodities. you pointed out the new agreement, but around the world, the chinese are starting to buy again. we don't know what the numbers will look like out of china terms of what their economy has gone through i'm stunned when i look through the numbers that are estimated here, whether it's jpmorgan or goldman sachs for what we'll look look in the second quarter in terms of the downturn i have never seen anything quite like thosenumbers. >> you know what they're buying, david? they're buying -- i know this,

they're buying what we're about to talk about. buyinging airplanes from boeing. >> yeah. let's talk about boeing, jim "squawk" did an extensive coverage about haley's leaving the board. what do you think about that >> wants to be president that's okay. you want to be president, you have to get off the board. people who do well are fat cats in the country i think she wants to run for president. good grandstanding some of the best i've seen by the way, she's holding up better than -- senator kelly loeffler did you see the buy she made she got citrix near the -- some senators who have been active in trading. it's like watching najarian and unusual activity boeing wants to get -- they have orders unlike restaurants, they have orders try these orders they want to make planes, give

them the credit line avoid the vaudeville there's terrific training in the senate they're not listening to me. they bought a lot of hotels. i never liked the hotels on "mad money. they bought the constellation. the rails -- what is she doing made some bad buys richard burr, he's been -- that guy is all over the place. completely diversified >> yeah. yeah he's looking good. >> better than aaron >> yeah. not bad. how much different trades? >> wa m&a -- >> 33 trades sold. no new neat positit positions. >> what are they doing with the hotels a lot of hotel analysts were negative maybe their chartists. you think they're chartists?

>> i love a good head & shoulders. >> some of these guys are doing cup and handle they're way beyond that. >> cup and handle. they're using cup and handle how about this one -- >> no, the relative strength index. they're in the relative strength index, they're buying some stocks that you never in a million years would have bought. 1.7 million of stock dumped reassuring about coronavirus richard burr man, you got to -- when you go out there and you say i'm selling, maybe you should say i'm a little less confident. maybe don't be so confident. i don't know >> speaking of relative strength, guys -- i'm not able to swim anymore. i don't know what you guys are doing. i have to figure a program out talking about aerospace, i'm going to for a second go back to our old world and talk about a potential -- a news story that i can share at least with you at this point involving something we would have discussed

certainly in -- when we were just covering the markets. united technologies, jim, we talked a lot about it. the ratheon deal still waiting to close people familiar with the discussions with the department of justice about approval of that deal say it is getting very close. approval is actually near. they are very close to figuring out and having done a divestiture package to give the clearance to united technologies ratheon deal, which once it does close will result in utx breaking into a number of companies, jim just for one minute i wanted to go back as though we were in our--well, you know -- >> time capsule? >> yeah. >> that deal might not be so bad. a lot of people are worried about the otus part of the deal. you get paint, you get the aerospace business, you get the climate control business, you get the elevator business, otus.

people are worried that that business will be the worst, that's heavily chinese now that the chinese are back and dominant, i think you want to keep the elevator side. china is doing well. >> as i said at the top, no new reported cases in china. to the degree you want to believe it, that's up to you you did mention the activity in alibaba as being especially encouraging. >> that's a good stock kind of -- look, i'm not being facetious. china is ordering airplanes, china is ordering food by the way, the chinese say the only cases they have are imported cases they are not only back, but if they put a lot of stimulus together, then arguably you could say if we let boeing go, let our defense go, oil go, we'll be -- it will be a -- we'll be a second rate power versus them. they're coming back so fast. that's not something i want to hear if you're only spending $1 trillion to bring us back, i

don't know how you compete against this engine. it's incredible. you use martial law, you're a dictatorship who knows what happens if you stepped out of your house when you weren't supposed to. i hate to think they're the winner, we're the loser because we're a democracy. >> the "journal" op-ed piece said part of the reason they have been able to bounce is because the government was an owner and absorbed a lot of the losses that's a good point, jim let's get to eamon javers who has more on the fiscal front on the hill >> i got off the phone with larry lindsay, the national economic council director under george w. bush, he said most of the analysis is missing the key element of this mcconnell proposal that just went out last night. i want to wake you through larry's analysis he says there's a big bazooka in the bill, it's aimed directly at small business he said the goal is to keep people on the payrolls

ultimately so, walk through this here he's talking about section 1105, the collins/rubio provision of the bill he said that will provide loans from the small business administration directly to small businesses for the purpose of covering their payroll he said this will cover employees making up to $100,000 per year but the loans would be forgiven entirely after four months if those companies don't lay anyone off. that is free government money to small businesses if you don't lay anybody off after that four-month period. lindsay's analysis suggests this could affect up to 80 million workers in the country it's authorized in the bill up to 3$300 billion right now lindsay says his analysis is if every small business in the country is eligible takes advantage of this provision in the bill, it could be a price tag as high as $1 trillion over a four-month period that is authorized and spelled out in

the details of the bill. there is a $10 million cap on payroll per firm in there. so you can't go higher than that 10 million if you have a big, small business this applies to businesses that are 500 employees and less i'm told this is a major job retention element of this mcconnell bill a lot of people are looking through this bill. this is on page 22, section 1105, have not focused on this but it's a huge number it's designed entirely to keep small businesses, employees on the payroll, incentivizes those businesses to thake those loans and have those loans forgiven after four months if they don't lay anybody off. >> thank you don't go far we'll rely on you for a lot of information today. jim, how many aircraft carriers is that? >> not enough. we keep thinking what danny meyer was saying loans don't work -- let's say you run a business and it's on a shoestring, you hear loans

what do you do take a loan and then you try to reopen then you owe more. it's grants to the workers grants to the workers. they have to stop with this one-time notion. i urged them over and over again, you've got to think bigger no one will look back at this government and this president and this congress and say, you know what? boy, did they ever throw too much at that covid-19 problem. no one in the history books will ever say that. this was not like -- this is -- this is an issue that is so much bigger than what they think. it's not like stalin where he questions how many divisions the pope has, but we need more a lot more divisions we had an army in 1938 that was smaller than the romanian army we geared up fast because there were people who stood up to the president, stood up to president roosevelt and said you are thinking way too small you are just part of the navy, can you imagine someone standing up to the president and saying you don't know how big this is

we need someone in that white house, someone in that congress who says this is a 4 trillion, 5 $5 trillion problem. >> jim, i hear what you're saying but the president's entire experience is in hospitality, travel, tourism i mean, this virus is aimed at his own business as much as it is any other it's hard to imagine he's clueless about that. >> i'm surprised he's not saying we'll build hospitals -- you see how fast they built a hospital in wuhan we'll build it twice as fast let's beat them where it matters, in ingenuity, manufacturing. let's go to regeneron and say what do you need you need a test which shows whether people already have it and they're immune the president has to be in the front lines. he needs to think strategically as people are tactically but there has to be a recognition that there is no -- no limit to how much we can do to help the american worker. without that confidence we'll

see tremendous despair and go under ray dalio mode i don't want us to go into ray dalio mode, every man for himself, and i'm going to my island >> jim, quick bit of news before we get to bob pisani you mentioned the walmart hiring and the bonuses for employees. jpmorgan is going to give front line employees a one-time bonus of $1,000 in two installments. this is reuters. let's get to bob pisani. >> goldman sachs, exxon, procter & gamble on the downside if you look at the s&p futures we moved in 100 point range. 2500 to about 2400 a little bit below that. remember, 2351, the close the

old december 24th, 2018, closing low. that's the last mental technical level people are watching. sectors today energy a bright spot early on. industrials were none of this is holding. banks underperforming. consumer staples have been weak in the last day and a half utilities, we pointed out yesterday had a big discussion on this. one of the things they're looking at the senate may be moratorium on bill paying. that includes utilities disconnecting people that's an economic impact for them as well if you look at other things. consumer stocks as well. a little bit of weakness there remember, these stocks had big runups and a lot of people overvalued hard to believe in this environment. but you see some people having second thoughts about running up food stocks in this environment. i thought it was interesting that virtue announced the

earnings today and announced a new expansion of their borrowing capacity by $450 million they said this is an extraordinary opportunity to provide valuable liquidity to customers across the global markets. this is a giant market maker saying there's an awful lot of volatility, and we're willing to go out there and to put some money out there. of course, they're involved in market making activity so this is all, of course, in their favor. it's interesting they want to expand their ability to be out there. bond etfs, huge outflows record outflows here i want to point out corporate bonds. weak, down 20% a lot of investment bonds might go into junk territory high yield bonds, concern about defaults muni bonds, they float the debt for the convention centers, for the transit systems that are all

out there being affected a lot of tentacles to this finally this quadruple witching expiration these are usually the two biggest volume days of the year. this is the quarterly expiration of stock and index future options. usually you get movement at the close. people are offsetting and closing and rolling over to new positions. and we usually get a lower volume the hope here is we're going to get a lot of volume, even more than normal today and hopefully next week things will calm down a little bit that usually happens, although heaven knows in these kinds of circumstances. carl, back to you. >> exactly bob, thank you let's check in with rick santelli this morning. good morning, rick >> good morning, carl. so many areas. let's concentrate on what's going on in sovereign treasury market a march 13th start what's fascinating at 1%, we're down 14 basis points on the

week tens and 30s are unique. they're still up on the week that's how much movement there was that we settled back from one yields shot up during the middle of this week. we're up four on the week. we settled at 96 look at a month to date of tens, what information that 54 low close you see, that's the all time forever low close. that was the 9th and 31 was the intraday low we're building a little bit of a base but not a lot of cushion at 1%, the all time forever low is at 54 basis points here's a two-day bund, the high minus 14 open the chart up to may 2019, yesterday's intraday low was the highest they've traded look at september 2018 for the dollar index, the nine was the low. 9489 then fast forward to the 19th.

that's a new high taking you back to january of 2017. never seen anything like it. back to you. >> all right rick, we'll see you in a little bit. jim, let's get stop trading. >> carl, senator locker in, i would let her take sit rix she sold the exxon in 60 i would like to buy verizon. why? she doesn't have a lot of income coming in in the portfolio she got smoked in fundco i had the verizon ceo on last night. i feel good about the yield. she sold suboptimal stocks i would buy verizon and also cro crowd strike i got to work on this fella,

burr what show does he watch? maybe he's watching a different network. he doesn't do any of my ideas. i'm focussed on the country. but man, look, it's good someone is worried about their portfolio. >> tongue firmly in cheek. >> it's only 100 there's 100 of them. some of them have to look at this stuff i salute them. i think people should also be worried about their portfolios and at least those people take me seriously >> jim, we'll see you tonight. >> they might like amh >> jim, we'll see you at 6:00. mad money, 6:00 p.m. eastern time when we come back, we have existing homes at the top of the tape session high of 347 as the markets go for back to back ekst tin the firime wes. don't go away. liking the now platform?

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good friday morning. i'm carl quintanilla with carl and morgan

we are in separate locations dow going in and out of the red. session high so far up 347 and the low minus 214. >> that's right. if we can manage to get some back to back gains here, mind you the moves are small. fluctuating around the flat line we're looking at the first two back to back gains for the dow and the s&p in overa month in the meantime, news from the fed with steve >> morgan, thank you in a global coordinated back, the bank of england, canada, japan, the ecb and switzerland along with the fed joining together to provide more dollar liquidity around the world and relieve strains in dollar funding markets that have caused part of the upset you've had and the huge strain in the markets what they're going to do now is they're going to hold daily operations to provide dollar funding instead of weekly. let me try to put this out in

some kind of terms that people might understand at least ones that i understand. imagine if the only place the whole world could get big macs was in america we'd have a supply problem the price would go up. what they're going to do is distribute this stuff around the world, hold daily auctions and try to relieve the pressure inside the united states for dollar funding we'll see if this is another piece of the puzzle with all the other stuff the federal reserve is going back to you. >> steve, thank you for that steve liesman. we're getting existing homes as well for that we'll go to diana >> existing home sales jumped to a seasonally adjusted annualized rate of 5.77 million units that's the highest in 13 years sales up 7.2% year over year sales in the west soared 19%

these are based on contracts that were signed in december and january and then closed in february so well before any of this really hit the housing market. and the inventory of homes for sale actually fell nearly 10% annu annually just a 3.1 month supply. that's tight it pushed the median home price in february up 8% annually to 271,100. the upper end seeing the biggest sales growth t so many homes are being pushed into higher priced categories. the chief economist said this is all in the rear-view mirror. realtors are reporting a decline in buyer traffic as well as sellers delisting their properties because they don't want people walking through their houses there is concern about appraisals and closings which usually have to be done in person we're going to start to see that technology ramp up for online closing and title insurance

quickly. a lot of the time you have to have an appraiser on your home they're talking about drive by appraisa appraisals those are generally on refinances they said housing wealth will hold on. they do not seem to think home prices will fall as they did during the sub prime crisis because of the shortage of homes for sale and the market. i asked him if he expected to see any kind of number on the sales drop we'd seen some forecasts of a 35% drop in sales this spring. he said it was not out of the question but he's not ready to put a number on it yet carl >> all right diana, thank you very much let's bring in david, city private bank chief investment officer to talk about all the swings we're getting in the flurry of news even on this friday morning david, thank you for your time >> pleasure to be here thank you.

>> trying to weigh the extreme negatives we're getting with i guess you'd call them mild positives. on the negative, everyone is bracing for whatever this claims number might be next week. obvious distresses in credit which we'vetalked about for days on the positive, a fair amount of insider buying relative to sales. got to go back several years to find that kind of ratio. better mitigation. how are you balancing everything >> you can't balance everything. we're going to have a significant hit to the economy and mitigation efforts are going to extend the length of time that hit is going to extend across the economy what we really are looking at is what's going to happen after this is over and whether or not the government is going to provide the right kind of support. it looks like they're doing that the fed and all the central banks have done an extraordinary job of rolling out the plans from 2008 and 2009

they've done it quickly and whether it's munis or mortgages, they've done all the right things to create liquidity and confidence they're going to make sure everything is right including dollar funding on the other hand, we're going to take this very giant hit that's going to effect small businesses and individuals >> so how -- you're trying to look through it. how efficient is the market at looking through it given that we saw numbers coming out of china that really didn't derail our own equities until a lag of several weeks. >> that's right. and so my expectation is that we're going to see worse numbers in q2 than people are expecting. we're talking about gdp down 15%. extraordinary unemployment or underemployment numbers that could run and take our levels of 10% or even 15% of people who are furloughed it's going to look awful for the second quarter and the issue is how do we recover?

and that's where the government programs come in if what's in the new republican bill that just got released is true, and there were small business loans and people can continue to get income for that four-month period, then the impact in the economy is far, far less, and we get bridged across what will be a very short-term extremely zero downturn once the markets see that and it will take i think at least another two to six weeks for them to believe that's going to happen, and then they have to get through the health care crisis, then you can imagine markets being more opportunistic. we expect great volatility and a few relatively ugly pictures of what's happening in major cities in the u.s. as the full health care impact actually hits our screens on tv. >> yeah. david, you touched on this i'm going to dig in it further the markets and the economy are two separate entities. they're intertwined, but given the pretty dramatic moves lower, we've already seen within the markets over the past month, are

there already opportunities for maybe perhaps long-term investors to be getting in here at these levels even if we do see at least in near-term, further pain, further volatility as some of the economic numbers shake out? >> it's an excellent question. it's the hardest part of being a chief invest want officer. about a week ago we wrote if you were going to put money into the market, you want to put a third of it in now you can't be precise about entering the market. valuations are 30 % down from where they were five weeks ago we are advising our clients to put money into the highest quality stocks with the strongest balance sheets in industries that are clearly going to be less affected, whether it's software, cyber security, health care shares, a long list of things. we also think banks ultimately will be a good place to be they're going to lead us out even though there's a heavy hit, they were deeply impacted in the markets, they'll be attractive you begin to invest now and you

invest more as you get more clarity. and the second thing we're advising our clients to do is not to try to market time with their core portfolios. if the scenarios play out, it will take time for portfolios to recover. if you try to market time with this volatility, you're guaranteed to lose that's for sure. >> when you say takes time, i've seen some desks coming out with return to s&p 3k over five years. a long road to get back to levels we saw a matter of weeks ago. i want to ask you about that as we're speaking, the presidential presumptive presidential candidate joe biden calling on every ceo to publicly commit now to not buying back their company stock over the course of the next year. how much of a drag will there be on equity recovery given some of the policies that might be enacted as a result of the bailouts or rescues?

>> right a variety of different questions there. i think let me go from the top when you think about the recovery like if people say it takes five years to get back to where we were, the truth is we actually don't know that the amount of stimulus we'ret g economy if it turns out to be a trillion, will be too small. if it was three or four trillion dollars, inflation adjusted for what happened in 2008, that would be significant interest rates coming out of this situation will be 1% as you heard peter talking about. enormous amount of stimulus. if we bridge this to the other side, the individuals will be hurt less than they otherwise would be hurt. you can imagine a strong 2021 with a 13% to 15% growth rate in earnings last year off a low number last year that's the optimistic view in terms of what you were talking about in buybacks, that's a different story that clearly takes some of the wind out of the markets, because companies will be holding cash

to stay safe and buybacks have been a large driver of the markets for the last two and a half, three years. >> david, i want to know in the next couple weeks you'll get another earnings seasons we've seen hundreds of companies cut their guidance we've seen dozens pull it altogether how much are the numbers going to matter? >> well, we're getting a clearer sense about the impact that it's having on businesses already you know, the supply chains clearly have been strained and in some cases broken sales have gone down in certain industries considerably on that basis. what people are doing are giving poor forward guidance, lack of clarity. i think it's going to take a toll as we hear the total story. but at least it's an accurate portrayal of how deep this moment is in terms of the impact in the economy it's going to be unlike anything we've seen in our lifetime and different than the financial crisis this virus crisis is going to be sharper down, more impactful to the average individual quickly

and the hope is on the other side we see a faster recovery in the event the health care situation becomes more clear let's say a quarter from now, three or four months from now. >> finally, david, as we look at some of the headlines, mnuchin is on the tape tax filing day being moved to july 15th. the vix is back in the 60s we've had a lot of anecdote evidence we haven't seen circuit breakers in a couple of days. hoe hoe can we establish a range, even if we chop for a couple months, establish a range around here. >> well, these last few weeks have been anything but normal. vix in the 60% range is extraordinary and frankly, unhealthy and deeply unsettling for those people trying to invest in the market in any rational way i expect for the next really for the next four or six weeks we could see another doubt of volatility that's very severe. we're going to see a lot of news in europe and the u.s. that's

going to be disturbing in terms of the impact on the economy and i can't believe that's going to be good for markets so i'm not particularly hopeful in the very near term. i am hopeful that the congress here and certainly we've already seen this in europe, are going to take the right steps and build the right programs to bridge us across at that point i think market normality can return i'm not taking the last 48 hours as an indication of the next several months i think we're not out of the woods yet. >> david, thank you. our viewers thank you as well. we'll see you soon >> thank you very much for having me. >> it's been a historic week for the fed and you just tarted this hour with more breaking news capping the biggest buying spree in its history steve liesman has the story for us steve. >> yeah. thank thanks morgan. by my count the federal reserve is coming into the market and purchasing a historic $107

billion, $32 billion of agency backed mortgages i don't think there's been a single day like this i know for a fact there has not been a single week like this after the end of this week if all the operations are scheduled today come topaz they'll have purchased $307 billion of securities their biggest week in the financial crisis was 162 that was in march of 2009. this would be double that amount you can't say the fed is not being very aggressive in trying to come in and clear the markets and provide liquidity, keep down interest rates, and make sure that these markets trade because they had not been trading. we'll see the kind of effect it has. on another front, part of the fed's reaction is what's going to happen to the economy here. and goldman sachs looking for next week. for an increase of 2.25 million

people on -- filing for unemployment claim insurance that would be the largest one week we've ever seen the second largest week after that, if this comes to pass was 695,000, a very bad week in 1 2 1982 even during the financial crisis, we didn't have a one-week surge like this we did have times when there were as many as 6 million people around the country getting unemployment claims. but not in a single week overwhelming states. take a look at the google search data you can see it surging around the country. this is the search for the trm unemployment benefits. it has surged around the country. but here's five states where it's happened the most nevada, the casino business there. rhode island, pennsylvania, and wisconsin are the places where it's surged. and we'll see. i did not see any comment at all or any mention in the republican bill for aid to states for unemployment, but that's certainly one way the states will be severely taxed in their

finances as well as their bureaucracy trying to process this surge in claims that's out there. so it might take some time for people to get their benefits that will have a further knock on effect on the economy the states have to figure out how to pay for it without federal aid? >> those are going to be key questions and the jobless claims to be key more leading indicators in terms of data we get in the coming weeks. steve liesman, thank you for putting that into one hit. financials feeling the hit huntington bank steve stainhour joins us >> good morning. >> we've heard steve liesman sum up actions and activities by the federal reserve. given the fact that we are seeing the moves and so quickly whether it's repo operations or asset buying and quantitative easing, the cut to zero and interest rates a few days ago, i

could do do-- go down the list, how is it impacting huntington right now, and what does it mean for broadly for the financial sector >> the banking sector is -- has never been better capitalized and better positioned to be part of a solution here so there are impacts branch lobbies have been closed we've closed ours. other banks have done that to try to moderate traffic flow and the risks to other customers and our colleagues in the branches but the banks have worked largely worked around challenges relating to the virus in terms of dealing with our customers. using driveups, atm, mobile, digital, other distribution techniques so we're -- there's a -- the immediate impact of the environmental changes i think have been largely absorbed in a strong fashion by the industry beyond that, there's clearly going to be an impact in terms

of lower spread revenue because of the interest rate changes by the fed, and these unemployment figures will clearly mean customers are going to need support. and this is where i think the industry being well capitalized can come in. i think there's a role for banks to play with providing support to consumers and small to medium sized businesses in particular for example, we have put a 90-day payment deferral for principal and interest in for consumers impacted by the virus as well as small, medium-sized businesses and we're seeing an up tick already on that, and it's only been out for a couple of days. there are other things we can do as an industry, waiving late fees,moratoriums a host of things to stabilize

the environment. as the fiscal elements come into play, we're -- that will be -- that will serve small, medium sized businesses very well assuming we get the funding mechanisms so the flows happen quickly and the same with the consumers. >> okay. i want to dig into that piece of the puzzle more with you, but first given the fact that you did take over at huntington, you took the helm in the midst of the financial crisis in 2009, and the last time we saw a recession, it sounds like and tell me if i'm right, it sounds like you're saying there were lessons learned by the government and the industry that enables a bank like yours to be in a stronger position to help small businesses in a more meaningful way today >> i absolutely believe that the banking system is almost capitalized at a 2x level from where it was in 2009 that's the case with us. we're collectively in a position

to be constructive and supportive as soon as we work through the curve, the duration of the curve becomes known. there's a resiliency that i think the banks can play a major part in in helping businesses get back on their feet >> so in terms of the fiscal response that we have seen from the federal government so far, and i realize a lot of this is rolling out in phases. has it been fast enough? has it been targeted enough? will it help your clients be it businesses or consumers enough >> well, it's still in process the large bill is still pending. and it has i think many of the right elements to be very helpful. but the distribution of proceeds, the timing of that will be important, and how the funding for the sba ultimately gets translated into helping these small businesses that need support in the near term and i'm optimistic all of that will work on a very timely basis. but that remains yet to be seen. speed is important here. a sense of urgency appears to be

in place the bipartisanship seems to have subsided substantially so things are now getting done i'm optimistic that we'll flow into next week with the opportunity to start helping people and small businesses. >> of course, you've been implementing some of the social distancing measures within your own banks and among your own employees in terms of interactions with some of those clients. we've been talking a lot about fin tech in general in recent months and the adoption of technologies by banks like yours. what's the role that's playing to help huntington bank navigate through a crisis like this >> this is very important. we have a lot of capabilities in our mobile and digital world the majority of our deposits flow daily through those other channels as opposed to the historic teller. and we've made tremendous investments as a company

we were j.d. power number one nationally last year on mobile and internet we're very well positioned we're the largest sba lender in the country by volume. we're very-well positioned as a company to be part of the solution, and we're clearly interested in doing that but i also know my brother and ceos of the different regional and community banks are clearly lined up with the same intent. >> all right that is good to hear steve, huntington bank ceo, thank you for joining us today >> thank you well, we want to get back to discussion about how to treat the virus. particularly a focus on those anti-viral medicines that are under development. can be quickly distributed but they're found effective and if so, could clearly mitigate effects of the virus and allow many of us to go back to resuming our daily activities f. for that i want to bring in dr. wa wayne homen. he's a long time investor but

also the founder of ridgeback th therapeuti therapeutics you announced a collaboration for a particular oral drug, anti-viral you hope to get into human testing that you think could be effective against covid-19 tell us why you believe that would be the case. >> that's right. thank you so much for having me on i appreciate it and the whole team here appreciates this opportunity to talk about what we're doing. i know we want to talk about the virus, ridgeback, drive, the collaboration, and -- 2801, the drug you mentioned we're in somewhat of a financial crisis, but this crisis is not rooted in finance. it's rooted in biology and the solution relies on biology. we need to beat the virus. i'm confident we as an industry, as a nation, as a globe can beat

the virus buy logically. i know we can beat it with medicines. medicines can be faster. we need to spend aggressively. we need all roadblocks removed we need to proceed safely but quickly. the biologic solution is much cheaper than the financial mitigation solution. i applaud the treasury, the president, congress, the fed their actions are going to be extraordinarily helpful. they're essential and necessary, but for -- i believe for single digit billions, biology can solve this problem and we need to move very quickly. >> all right so tell me about this -- tell me specifically about what you're describing as a broad spectrum anti-viral that you have under development that you hope to get into human trials. is it any different than what conceivably we're hearing from regeneron and gilead, and how

fast can you move if it shows it's efficacious and tolerable among humans >> i'll tell you what we do, don't know and the vision we have what we know 2801 kills the novel coronavirus without killing the human cells. it prevents disease when given to animals if you administer doses of mers and sars, two other deadly coronaviruses it reduces the severity of disease and the viral levels in the lung when 2801 is given as a treatment of mers and sars in animals. we have a favorable safety profile in monkeys we've tested it. at the highest doses in monkey, it had a favorable safety profile. the dose that we -- it's easy to make we can make it at large scale. we have 30,000 plus dosing

regimens on hand already manufactured today a plan to make 60,000 more we would like to make 60 million doses. we can do it we've been in discussions and the drive team, a great team led by george painter, 25 years of experience in anti-viral experience the whole team has been in contact with fda we want to file an ind as early as next week we're hoping to get that ind cleared, start single dose study. we treat patients to look and make sure that we get the right levels of drug into the blood and that the safety we saw in monkeys is replicated in humans, and at that point we'd be ready to start patients. we can do this very quickly. we can advance this very quickly. what we don't know

we don't know if we'll get the same blood levels in humans that we saw in animals. we expect we will. we don't know if we'll see the same safety profile in animals that we saw in monkeys we hope we will. we expect we will, but these are things we don't know we don't know if it will have the same efficacy against the novel coronavirus that we had against mers and sars in animals in in mers and sars the level of the virus peaks within one to two days of administering the virus to the animals with the covid-19, that peak occurs seven to ten days after you've been exposed to the virus. we have a nice window to treat early. so our vision for any product, but we think 2801 is perhaps the best product that's ready to be tested in humans that has the highest probability of achieving this sort of profile could be a pill that you take

twice a day for three to five days as soon as you get symptoms you knock down the virus early you avoid hospital in a maun owe, ventilator icu and we want to prevent people -- we want to increase survival. all anti-virals work better if you use them early so that is the vision. can the world develop a product you can give orally early that's safe, knocks the virus down, keeps people out of the hospital >> all right so you're obviously optimistic you done work in the past in ebola where you've had success and are currently i think have a submission with fda for licensing a drug, an anti-viral to treat ebola i guess it doesn't -- i mean, from the perspective, wairyne, they don't care if you're first or gilead or regeneron or some company we've never heard of the hope is as quickly as possible somebody can get a drug

on the market the way that you're talking about is it your expectation that will happen and do you feel like the federal government is in a position to execute successfully on actually getting that done as well >> i believe it will happen. i believe the federal government is very involved with the ebola program, we have worked with tony fauci and his team at naiad. we have a great relationship with them. ridgeback therapeutics last night signed $150 million barta program on our ebola program the team at ridgeback knows how to work with the government. the people in the government are working tirelessly towny fauci is an american hero. there are a lot of here rows working behind the scenes. we're confident they're going to be engaged we have a line into the vice president's team already

and the whole industry, the whole pharma and bio tech industry, i have a tremendous amount of outreach already we've been talking to physicians treating disease in other countries. their people are all in this together we are all working very hard i am absolutely confident that there is a solution rooted in biology, and that we have some of them now. i'm confident that some of the other things you mentioned, david, will have a positive impact regeneron worked alongside of us in the ebola outbreak as did gilead they're doing great work i think they have an anti-body helps with late stage patients i think the gilead team, they're very great, dedicated people i am optimistic. i think 2801 has a great profile

because we have a lot of it now to give. it's oral. and if the safety and efficacy translates from animals, that's an if, but if it does, it has a great profile. >> right wayne, while i have you here and quickly given your long history as an investor in these markets, particularly with a focus on some of the things we've been talking about, drug development and bio technology companies, what's your approach right now i should point out, by the way, you are somebody who early on i think understood, perhaps, how quickly the virus was spreading. and the impact it might have and you and i talked about this some time back, but i'm curious as an investor now, not as somebody who is developing new therapeutics but as an investor, what are you looking at in terms of this market are there opportunities? is it simply too early for you to think that you want to

dedicate capital particular opportunities? >> we will get through this. and there will be amazing investments to make. there are people amazing investments to make today. i think in the short-term what people need to be looking at is how aggressively are we doing some of the easier social distancing, easier public health measures it is true if you never leave your house if you're not feeling well, if you wash your hands every time you come back in from the house, you don't shake hands, don't hug, keep social distance, we will see less transmission less transmission equals more time for the biology to be solved once it is, this is a great economy. we live in an innovative world we'll continue to do well. we need to do certain things today very quickly for that to be a near-term outcome

>> all right wayne, we're going to leave it there for now. we wish you the best of luck in the development of the treatment and look forward to following the story as it moves along. morgan, over to you. >> david, thank you. i want to get a check on the markets as we move back toward session highs an hour into trading. everything is in the green the s&p is up more than 1% 26 points. 2436 is the level. the dow industrials is up 284 points or 1.4% it is time now for a coronavirus update and sue herera has that for us >> good morning, everybody we're going to start with the latest numbers for you we are now approaching a quarter of a million confirmed cases around the world 246,000. that's the latest count from johns hopkins. deaths have topped 10,000 with italy and china both above 3,000 each here in the u.s., more than 14,000 cases 2 05 deaths.

out in california it is the start of the first full day of that governor's order that all 40 million state residents stay home exempt for essential trips. advocacy groups are concerned many of california's undocumented immigrants will not seek medical attention if they get sick coronavirus despite the announcement that they will focus only on people with serious criminal records south korea is sending boxes of protective masks and other items to south korea that's the latest. we have full coronavirus coverage all day any time on cnbc.com carl, back to you. >> all right sue, thank you very much coronavirus cases in the united states now passing 14,000 joining us is the former ebola czar for the united states thank you for the time today

>> thanks for having me. >> we had a long discussion about harnessing the energy of the bio tech industry and the degree to which it's coordinated with the blouwhite house. are you seeing parallels to how we tackled ebola in this episode? >> we are both for good and bad. in fact, some of the very specific drugs your last guest was discussing were drugs that were also tried and had some success in dealing with ebola patients there are echoes of that one of the other echoes we need to keep in mind is even if all these things succeed wildly in the trials and there's no guarantee they will, it's going to be probably months before even the first of them is really approved for widespread use. and so i think it's really important for everyone listening to understand that for the foreseeable future, these social mitigation measures, staying in your home, washing your hands, all the things we're hearing

about, that's our tool for at least the next six to eight weeks. i am hopeful about some of the solutions but no one should let down their guard no one should think we have an answer we have some promising things, but they aren't proven yet it's going to take a while before they are. >> so when the white house frames it as 15 days to stem the spread and now you have fauci this morning talking about several weeks, obviously your comments just now, it's not going to be 15 days? >> it's not going to be 15 days, and look, i kind of understand trying to get people in this mind set by giving them one bite at a time here, but i think it's also really important for all of our public health communicators and for the people at the white house to quickly pivot to a more realistic message about how long this is going to be. and i worry, carl, that the virus is more patient than people are that what you see in other countries is as soon as you start to let down these

measures, the virus comes back this isn't something we can kind of do halfway where we get it half right, it's fine or something like that. and so i think we have to balance as we communicate about this, not overly making people glum and telling them they're all locked in their houses for six months, but i think we need to be more realistic about the fact that i don't think in this country is going to change for several weeks. as far as working remote, out of public places. all these things we're starting to live with i think this is the status quo for the foreseeable future, and i think eventually we will have treatments but even treatments, even the kind of treatments, all the drugs that are starting to show some promise, those are treatments not vaccines. that means they're going to help people who get sick. our goal is to not have people get sick so these public health practices, that's our first and really only line of defense for the foreseeable future

>> yeah. ron, i mean, it's a key point you make as well we're seeing it in realtime with china as the country is back online the risk is people coming into that country bringing the virus back with them as well i'm curious, though. in the past week it's been so dramatic in the u.s. american life has just shifted on its axis and changed what practically feels like overnight. it's like the flip switched. how quickly can such drastic action where social circumstances, social changes, social distances are concerned actually change and shift that trajectory for the curve and to be able to flatten it in the u.s. >> that's a really great point and something i'm also quite concerned about. because this operates with a time lag the people who show up at a hospital tomorrow are people who got this virus probably about 14 days ago so everyone needs to stop and think about where was i 14 days and probably 14 days ago you were at work or the stores

you were out and so there's going to be this disconnect where everyone thinks i'm doing all these things to fight the virus but it keeps getting worse. the numbers in the update, it's virtually doubling every 24 36 hours. the things we started doing today is not going to move the numbers at all for the next two weeks. because those people got sick before we started to do this stuff. and so i think, again, we're just going to have to be patient in a way that americans rarely are as a country for what we're doing and we are doing the right things now in terms of all the social control measures for what we're doing to really start to bend the curve it's going to take a while >> yeah. meantime, there's so much focus on capacity. whether we're going to have enough medical supplies or enough ventilators, icu beds on down the road right now. the fact that we have the navy mobilizing two ships, the air force which is flying in supplies right now from parts of

europe, for example. president trump invoking the defense production act earlier this week but kind of backing off of it a little bit and saying he wouldn't enforce it unless it's a worst case scenario if we see that enforced and quickly, what would that enable us to do >> i think the president should enforce it now if we wait until we're in the worst case scenario, even all our great resources, even the great resources of america's private sector, it takes time for them to repivot and do the things they could do right? i mean, if the president kind of takes over 3 m and says we're going to produce more masks, it's going to take time for them to staff up, get the raw materials. the one thing about this virus response is we have been behind every step of the way. and the only way we're going to beat it is to start to get ahead. and so i think -- i think we really need to get more aggressive on all these supply chain measures now what's the worst that could happen we make a bunch of masks that somehow we don't need?

that seems unlikely to me. and i think when we are facing what we're seeing this weekend in hospitals, doctors having to use bandannas instead of masks, insufficient beds and ventilators, all these things in short supply, people who are going to get turned away from hospitals. i think overdoing it would be the least of our problems and all these things have time lags. even moving one of the ships, it takes weeks from get from the west coast to the east coast we have great tools but tools take time and the only way to beat this is to bet ahead of where we are, not continually playing from behind. >> to that point, ron, i mean, i think we can all agree at this point from an emergency response, we were late on testing and certainly some of the reporting on the cdc's early stance now is truly disturbing but fauci this morning said look, we did close travel from china early. italy did not.

and that was a mistake for which they are now paying a price. what is a fair grade on the emergency response >> i'd say fairly, an f. i'll tell you why. first, the travel ban from china was always only partial. if we had a true travel ban from china, we wouldn't have the virus here, but it is. and it's here in large numbers commercial cargo was always exempted obviously the returns of u.s. citizens were exempted even after the ban was in place, thousands of people were coming from china every day we knew that, and there's no question dr. fauci is right. it bought us some time but we squandered that time. you look at the countries most successful, they used the time they got from the time they knew the virus was coming until the time it came to ramp up testing, to ramp up hospitals, to ramp up gear, to ramp up ppe and we didn't do any of those things we spent the two months saying it's not going to be here. 15 cases, it's going to go to zero so on and so forth

so what we're living with now in this country, the virus was created by nature, but the failed response was created by decisions we made. and i think we're seeing the consequences of that there's no reason why that america was testing at a fraction of the rate of korea. there's no reason we didn't ramp up like singapore to deal with this so i think that the response is getting better now but we're going to pay a huge price for squandering january, squandering february, squandering even a little bit of march. >> hopefully the new things will change the curve as it's become the phrase now >> absolutely. >> ron, thank you again. please stay in touch >> absolutely. thanks for having me >> well, with the dow and the s&p each up 1%, the nasdaq up better than 2 %, we're going to go to mike for a check on the markets and the fact that we are at least right now poised for two back to back positive days for the major averages which we

haven't seen in a month. >> yeah. morgan, it's a small step in a positive direction i think a couple things you would observe over the last couple days. the amplitude of the moves as narrowed for now and i think we're really in this mode not of saying was this a bottom is this a bottom it's way too soon. the range of possible outcomes from policy to the economy is too wide to really feel like the market has a real grasp of that. i think you can to use the medical metaphor, you're trying to see if you can upgrade the market from critical to serious to stable. i think you've seen signs that this very head-long kind of blind liquidation action maybe we're in a lull right now. i was looking at obviously everybody else, looking at the corporate credit situation and really driven largely by retail outflows from some of the fund vehicles like lqd. an investment grade up today

by kwoins dense, it's basically had the same performance of the s&p this week. and that was a sign of just this sort of swapping of anything for cash type activity so if that's gone by the wayside and if we can essentially we've gone sideways since a week from yesterday, since thursday before yesterday, that's tentatively you could say it's okay. but i don't think beyond that we're making grand statements. the way this usually goes is there a really intense vertical drop phase where people just want to get out at any price that kind of morphs into more choppiness, maybe failed rallies and who knows? we take it from there. >> important context, mike, this idea that sideways over the past week through yesterday, because it hasn't felt that way given the drastic moves we've seen on a daily basis. the fact, though, speaking of dramatic moves, that some of the top performers in the s&p are some of the names hit the hardest in recent days whether it's the airlines or hospitality

leisure and gaming stocks j is there anything to glean from that >> i think you can glean some stuff went so far without a pause -- it's a form of profit taking for people betting against them in a form of picking up tickets at the racetrack to see if there are any winners that somebody threw away i think that's part of the activity i would also mention in parallel yesterday and today you've also seen strength in the familiar old nasdaq stocks. the ones that were at their highs for particular reasons such as they weren't so subject to global economic moves, they were very strong in terms of balance sheet and everything else it's another reason that people if they're just going to decide to try and get exposure to equities again, that would be a logical spot again, i think it's always advisable in these moments to be hesitant about drawing themes out with a lot of specificity or a lot of conviction about what

they mean just because we're not necessarily through this period where a headline can just whip the market in the other direction. >> mike, thanks. we'll see you in a little while. want to get the eamon this morning. got a tweet from senator bur and a statement from inhoff. >> good morning. this statement here from richard bur is explaining why it was that he made the stock transactions that have now proven so controversial for him. burr, you remember, on february 13th now, sold a significant amount of stock. somewhere between around a half million dollars and a 1.5. this was after he got classified briefings. burr saying he didn't do anything wrong in selling the stock. he says quote, i relied solely on public news reports regarding the sale of stocks on february 13th. specifically, i closely followed cnbc's daily health and science

bureau's report out of asia. i asked the ethics committee and asked them to open a complete review with transparency he's asking for a review of the matter with transparency he's insisting he didn't make his stock sale decision based on classified information he had exclusive access to. instead, he was simply watching cnbc like anybody can do and made his decision to sell based on what he was seeing out of our asia reporting carl >> eamon, i'll take it thank you. i want to turn back to the broad impact of the coronavirus on industry across the world including, of course, the movie theater business the ceo of imax joins us now on the phone. richard, let's start off with the basics how many of your movie theaters

around the world are open right now if any >> there's about 150 open, all internationally. i think there's one or two in the u.s. maybe still open. the biggest territory still open is russia with about 50 screens. >> okay. and let's talk china, because we bring you on many times and we always do end up talking about it since it's an important component of your overall business things are getting better there. things are opening up. when do you think you're going to have screens beginning to open again in china? >> yeah. i mean, david, because this happens in china before the rest of the world and because we have a sizable business there, we got an earlier dose of reality than many people, and whileit wasn' pleasant at all and still isn't, we have an early look into how this thing might run its course. so where it's at now in china is about 21 multiplexes are open.

none of them have imaxes in them by the end of march, many more theaters are going to start to open the government has started a process where they're giving lists of what movies might be available and what cities are going to allow theaters to open. and i expect to see more open by mid april, and then i think our team over there believes that things will be close to regular schedule by early may with new chinese movies being released. of course, this is all subject to the caveat that people stay healthy and that this plan works. as i saw you guys report this morning, there have been -- the last few days there have been no new cases in china, i think that that includes today, including from visitors coming in to china. but i think we just -- it looks good, but i think everybody is

going to go slow >> yeah. of course. i would expect that to be the case you are in a pretty good position to withstand this period, i think, in terms of your balance sheet which does not have a lot of debt on it how long can you go here and i mean i know it's so difficult to try to figure out when things may return to a semblance of normalcy, but what are you trying to work with at least when you think about your business returning to some semblance of what it was prior to this crisis >> so the first thing we do is we run a model that says we're going to have no revenues and we're going to make very few changes and how long can we last on that, you know, kind of very conservative assumption and our answer is over two and a half years without any changes. while this is awful at so many levels, from an existential

threat to our business, there really is none we also have the experience of in 2000 and 2001, the entire exhibition industry worldwide virtually went bankrupt an it was an extremely difficult time. fort fortunately we weren't one of them and that's one of the reasons we managed our balance sheets so conservatively over the last number of years because we seen it as a company, we used that period of time to transition from analog to digital, to invent or enhancing our dmr process and invent our joint venture structure. one of the things we're trying to be focused on is if you're fortunate to be a company that doesn't have a life-threatening sort of company-threatening existence how do you keeps the troops motivated and how do you get them incented and innovate

we're focused on that. >> this is morgan. in terms of the troops with so many of your locations closed right now, what is happening to those employees? are they furloughed? you having to consider something like layoffs >> so imax is a technology license company so we get the films from hollywood we put in our systems around the world in 82 countries and get a license fee from the studios and our exhibition partners. as a result, those employees are not hours. they're employed by our partners the companies. in china for the two months that this has been going on, we haven't laid off anyone. this is all new. this phase of it we're hoping to keep that to a minimum. >> rich, it's carl obviously we've got a lot of hard work to do in the next several months, but on the backside of that, how does the

movie going experience change? wave talked to airline analysts who suggested look for social distancinging we're going to have to lose the middle seat are we going to put people every five feet and what is the collapse of the theatrical window mean for movie theaters >> it's a very complicated answer, carl i'll try to do it as brief as i can, but i think in the short run, the likely assuming the health issues are addressed, there will likely be a fairly sharp bounceback and the reason is that a lot of the films getting postponed in 2020, like the bond film and like "black widow" from marvel, they're going to be bunched in the second half of this year and 2021 also looks like a very good year in the short run i think there's going to be a lot of incentive for people to go out, especially after being cooped up and going through their entire streaming service library three times

over in terms of the windowing questions, you know, during this period of time a couple of studios have short nd the window in order to amortize their investments and have programming for consumers trapped in the home i don't think the windowing is going to change dramatically over the next couple years if it does, imax shows blockbuster movies and people like to be in communities and they like to socially interact and go to those kinds of things. one of the few fortunate things of having been in my job for over 25 years and at a company that's open over 50 years, a lot of things happen that in the short term lead like -- lead you to believe they're going to be long-term trends, but people's habits tend to stays the same. i was in pompeii last year and people went to see live entertainment there. i think it's around 1,000 b.c.,

maybe a little later than that, but these kind of social entertainment experiences have been around for a long time and are going to be around for a long time. >> didn't think we would get to pompeii, richard, but we covered a lot there. now we'll leave it there >> i thought it was a good idea. >> thanks for joining us. >> i thought at a time like this history offers us a little bit of comfort. >> we can all hope that human behavior goes back to more or less what we've known it as. it remains something of an open question richard, thank you carl >> i'll actually take it, david. thank you. let's get over to rahel salman for a sector sort. >> most sectors trading in positive territory consumer discretionary and energy outperforming while materials and utilities lag. but the market gives and the market takes away. one of the groups that has held up relatively well through the recent selloffs consumer staples, that's the worst

performer today. just another indication of the volatility that we have seen playing out over the last few days and within that group we're seeing weakness in in of the names that have gained traction as consumers have rushed to stock up on clorox and kroger and procter & gamble kroger down almost 7%. guys, send it over to you. >> all right thank you very much. we are actually going to take a quick break. something we're not used to the last several days. a reminder tonight on "closing bell," 3:00 eastern time, we are going to talk with the ceo of mcdonald's, chris kempczinski. sch discussion about the pain restaurants are going through. who better to talk to than the largest restaurant chain in the world. we're back in a minute we made usaa insurance for members like martin.

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weeks. not far from session highs if the surge holds it will no longer be the worst week since 2008. >> yeah. it's pretty amazing because it has been another wild week on wall street as you mentioned the dow is up 394 points right now or 1.9%. s&p up 1.7%, 2449 the level there and the nasdaq is the big outperformer up 2.8% in terms of what's leading the gains a lot of the same names and sectors that have actually been the hardest beaten on a week to date basis as well energy, consumer discretionary and things like the airlines which are leading the dow. transports up 4.7% right now meantime we have some more breaking news and for that we go it steve liesman steve? >> another major step by the federal reserve. the federal reserve now including short-term municipal bonds in its money market fund and will lend, this is for the first time, never did this during the financial