1987 as attempts to stop the spreadof the coronavirus start to cripple american business check out shares of chipotle they are jumping as the company ramps up delivery by teaming with uber eats the ceo will join us later this hour the dc stock dumpb cau causing upro uproar some senators selling millions of stocks in february while keeping the public in the dark we heard from senator kelly loeffler denying the characterization the reporter who helped break that story will tell his side of the story here this hour >> here is what you need know, everybody. u.s. cases of coronavirus are jumping quickly as testing around tunramped up california, new york and london are in lockdown to stop the spread of the virus. the irs has officially pushed back the tax deadline to july 15th both for individuals and for businesses no penalty directly from senator

mnuchin this morning bob with the wild week for stocks rick and the bond market bob bob, we start with you >> it's another choppy day hopefully will end a little more stable than we started below this week was 22.80. we're well off of the lows for the week but still down today. off of the lows for this morning. in terms of sectors, it's been all over the place all week. for once energy is leading but that was the opposite earlier in the week consumer staples are the week one. banks have been generally under performing the entire week just want to point out the consumer names every one was talking about. campbell, smucker's a and the food stocks were up.

for the last day and a half they have been selling off. i want to point out the bond etfs high yield bonds the junk bonds down on higher chances. there's 3% currently muin bonds weak. they do the convention center. they fund the transit systems. quite across the board one bit of solace is the vix is quieting down. if you call in the 60s quietening down. i accenticipate that will probay drop a little more we have this four time a year. it's the quarterly expiration of stock and index futures and stock and index options.

individual, people who trade these offset them. they roll out into new positions in the futures contracts and options as well. generally the following week, lighter volume and a little lighter volatility let's hope that is the case. back to you. >> robert, thank you very much let's get over to rick at the cme. are you at the cme yes, you are take it away >> we're at cme corporate headquarters w we're not on a trading floor we have eyes to the world with regard of seeing a lot of the markets. trying to help all our viewers out. if you're at place that's not really your desk, two day of 30s. 30, longest maturity is they sit right now. if you look at what's going on, that spread yesterday got close

to 68 plus the highest its closed in two years. today it's trading back down under 60 the ty vix is the ten-year it's definitely not on the highs but hovering around 13 it's so much higher than it normally is. it's been thrashing around between 12 and 16. most likely you'll see a thin, rather long end trade. kelly, back do you >> rick, thank you, sir. let's get to congress working on phase three of the stimulus package which may include a direct payment to americans. we have the latest. >> reporter: it will include a direct payment according to people up on capitol hill. the legislative language we got

to see last knight and this morning. we're learning about what's in there. the direct payment will be means tested nobody according to the proposal out there right now. nobody above 130,000 a year will see the direct payments. it's reserved for people below that level passenger airlines will see $50 billion. other distressed industries is another category the tax filing deadline extepndd to july 15th that's all out there in this proposal that's moving on capitol hill what else we're learning now about this proposal is that it's going to have a big piece of small businesses assistance here it will have about $300 billion for small businesses this is going to be payroll assistance for companies that need help paying their workers immediately. the important thing about that is under the proposal you'll be able to, as a small business

borrower write off that loan after four months if you don't lay off any employees. that could be free money from the government to help small businesses maybe their payrolls during that four month period. if you're large company and thinking about a stock buy back and taking some of this assistance, you might not want to think about that. here is the president asked about whether he think stock buy back should be allowed for companies that take this assistance >> i'm not aware of it i saw some names i know all of them i know every one mentioned di e dianne feinstein and a couple of others i don't know too much about what it's about i find them to be honorable people >> kelly, we are working through some technical issues. that was the wrong sound bite.

ahead of this massive crash in the market that's a separate story. he does not want companies to be engaging in stock buybacks we'll see how all that rolls together we're working on the language. no indication of when we'll see a vote on this phase three bill. >> we appreciate it. >> biggest intervention in a week's time from the fed steve has the latest on that hi, stooefr. i gez we uess we do not have st. the fed putting another trillion dollars into the market to create the liquidity we likened it to the idea of trying to fix the plumbing of the financial system while the water is still running that metaphor seems quite apt. the market is sinking. the s&p on pace with the worst month since october of 1987.

worst week since the financial crisis let's ribring in ron and nela. welcome to both of you let me start with you ron. you're a market historian. compare how this feels with 1987 >> well, there are a couple of different things with respect to the feel, in 1987, there were more than 3,000 people on the floor of the new york stock exchange. the chicago exchange where i covered the crash from that week were stocked full of people and the trading rings and the trading pits that the options exchange were literally individual shoulder to shoulder from that perspective, this feels different because it's been so electronic the day of october 19th, 1987 may have been in my ways the single most profound market experience i've had up until 2008 this feels different in some

ways from a market perspective it doesn't feel as bad as that from an economic perspective, it feels worse. we're talking about the possibility of 24% on gdp declines in the second quarter and millions of people unempl unemployed in a short period of time this is more of an economic shock than a market shock. >> i think that's an interesting point. this time does feel different because in prior whether it was 1987, even in 2007, '08 and '09, you had a sense that something abtract was happening. here it is all too real. people are losing their jobs businesses are shut. you can see it you don't just have to be told about it by cnbc

>> even add another layer to that unprecedented layer by walking the streets of new york city now this is a health crisis. as people are concerned about the market, they are concerned about their own personal health and the health of their family members. we're seeing a play out of that uncertainty. play out in terms of the economy. we haven't seen the worst of the economic data by any means that's going on right now. it's now detached from the fundamentals as we know them we'll see that play auout with more economic data a loot has been priced into the stock market

we expect the turbulence to continue we expect to see better options for investors. >> we don't know what the fundamentals are, do we, ron >> no. i looked at some of the data from the great depression in 1929 to 1932, industrial production dropped more than 40%. gdp over that time felt 15 president in aggregate we're talking about a 24% decline in the u.s. alone. in conjunction with this decline, in equity prices and the dislocations we're seeing in credit this is in many ways, as far as financial markets and economic collapsing at the same time. this is a concurrent event which the other guest suggested is

compounded or created by a health crisis. this is as new as it gets or unchartered as anything we have seen >> as you look back historically to make this casual observation. in those prior markets, even going back to 1987, the public participation in the market was not what it is today today people have 401(k)s that are tied to market performance millions of americans invest in index funds and passive structures like that the reach of this economically and into the household is deeper than it was in 1929. deeper than it was in 1987 nela, let me turn to you there's been a lot of talk we've heard it

it's all well intentioned, i'm sure some of it is well reasoned, i'm sure we should expect a quick snap back a so called v recovery here. you buy that >> no. i don't buy it at all. one of the other reason, in addition to the connectivity of households to the market, it's the global renaissance that we have seen. the globalization that fed this pandemic that is also been shut down by social distancing. we are killed by globalization that's been a tern stop in that flow and trade of people akros borders. that will amplify the time to recover. all that being said, we can't forget some of the good parts of the economy that will help sustain through this rough patch and into a recovery.

very different from 2008 where the banks were the source of the disease. the credit markets are the symptom of the disease some of that fed action, the unprecedented level of fed intervention that we're seeing not just in the u.s. but in central banks around the world will help these credit markets improve some of the locations we're seeing i'm not an optimist in terms of a v shaped recovery. i'm an optimist over the long term we beat this all. >> nela richardson of edward jones. thanks very much >> thanks. a number of senators are in scrutiny after selling millions of dollars in stocks we heard from senator leoffler denying any wrong doing. kayla joins us with more

>> reporter: four u.s. senators sold close to $10 million in u.s. stocks over the course of several weeks following private closed door meetings about the coronavirus as it was spreading. one of those lawmakers is freshman senator from georgia. she sold 27 stocks totaling up to $3 million and purchased citrix this was done without the knowledge of her or her husband. these were discretionary trades that are made on a regular basis without her or his input i asked her being the newest member of congress and the wealthiest and also running a contentious election this year, why not hold off here is what she said. >> these are sales that i don't have discretion over our portfolios have been third over to third party investment managers that are making these decisions. they represent a small fraction of the portfolio that's going to be normal course

trading that would have seen if you looked back to the portfolio a year ago >> reporter: now, the partisan affiliation of the senators telling these stocks is across the aisle. two are republicans. two are democrats and one, north carolina senator richard burr said he would submit to an ethics investigation on his transactions that were totaling roughly $1.5 million i asked the senator if she would submit to an ethics investigation and said she would cooperate and answer any questions that were asked of her. >> kelly loeffler have an enormous wealth and the trades are small piece of that. did richard burr said his trades were directed by an invest ment manager or by himself? >> reporter: he's defended the moves he made. the total value of them are roughly equal to his entire net

worth. that seems optically to be a way for him to capitalize on the information that he received when i asked the senator about how much material non-information they are given, she said it's low. we are not in those meetings we're not privy to what was said but there's still a will the of questions about these transactions we should note the actual timing of the sales, the amounts, the companies are publicly available. it's the pattern and what is leading up to transactions that we're still trying to wrap our minds around >> you say why have the appearance of a conflict of interest but if you want qualified people to be senators and they require -- what do they do for president do they say you have to sell everything shouldn't that standard apply across the board here without discouraginging people from wanting to run for these offices. >> reporter: certainly the president is shielded from a lot of those rules

many presidents comply because of the spirit of rules it does raise raia lot of questions. because of the net worth that she and her husband have, it does signal do you they didn't necessarily need to do these sales. not that would have made it any better, optically, but the question of why now and why would this election and why with the american economy currently in tatters is the one to be asking >> all right thanks very much one of our next guests is up with of the first reporters to break the news of senator burr stock selling. robert, let me start with you and what do we know about the senator burr's stock sales seems like there are kind of all

these situations are getting lumped together. >> my standard is the behavior the securities trading needs to be quite anomalous it will shock a lot of folks but senators and members of the house are allowed to trade in individual stocks. we look for trading behavior that's way outside of their norm in senator burr's case, that is what it was. you know, we saw up to $1.72 million of trades in one day that came one week before the market began its decline we went back about 14 months there was no other day where he sold off nearly as much. typically, his reports are a mix of sales and purchases

sales and trpurchases of this stocks this was 33 separate transactions each and every one of them were sales. >> what does that tell you >> so what does that tell me that tells me that there is a possibility that the information he was getting as chairman of the senate intelligence committee, which includes pandemic response and its portfolio and it's a committee that receives highly sensitive information, it's possible that information influenced hid th d thinking as he made these trades his defense, he said he was not trading based on any non-pohfnoc information. he was basing off of network he got from your network, cnbc. >> right

>> do we know he sold 1.7 million or is it reported as a range? >> it's up to 1.72 it's at least $628,000 as far as members of congress go, senator burr is not particularly wealthy compared to the average american, he is. even if it was at the bottom of the range, this would have made up a significant fraction of his net worth. >> jimmy, let's bring you in here at cnbc we are restricted on what we can do can't do single names. why not have that standard for congress what more would you say about all these reports in the past 24 hours? >> certainly there's been e efforts in the recent past to limit, to ban individual stock trading.

i don't think it's a huge burden if you want to be in public office then maybe you cannot have an active, individual stock trading account. as far as these individual cases we have to be careful. we don't want to hang these people there's a lot more information that needs to be gathered. >> i don't know if the public will want to wait on that. it looks a little more damaging in senator burr's case what would the punishments be? securities law or something more specific to congress you can't discourage people from

having wealth in congress. you have to make sure even the experience using insider information doesn't happen >> i don't think it's a burden to be in an index fund and not be able to jump in and out of the fang stocks. you can still -- i love individual stocks. >> senator feinstein has a blind trust. would that solve the problem >> i'm not in the solutions business i'm not trying to dodge the question my job is to, you know, interview sources and dig into documents and look for newsworthy situations that other people, activists and folks who write new legislation lawmakers

can use. >> as this gets played out, i suppose we'll learn how much information was out there in the public senator burr said he was picking up a lot on cnbc asia. as you look down the road here, one of the troubling things is that as i recall senator bur and i'm not sure about the senator from georgia were among those who were say iing don't or worry this coronavirus isn't that part of the problem, robert >> yeah. before he had done these trades he published an op-ed with fox news describing the u.s. preparedness for the coming coronavirus crisis as very solid. it was a very reassuring op-ed

what he told a private group of constituents from north carolina, this as part of a members only club hosted event, was it was going to lead to school closure, disrupt business travel what we know is that while he had put out this public op-ed that was very a reassuring about what the response would look like, we do know he knew there would be major disruption because of this virus. >> all right we'll leave it there let's get to sue just minutes ago we learned that italy's death toll has gone above 4,000 with 627 deaths added overnight. it now has almost 1,000 more deaths than china did. the world health organization is

warning health systems around the world are collapsing saying it's not just a bad flu season, end quote. coronavirus restrictions in the uk getting tighter while many residents were already staying off the streets on their own prime minister boris johnson is shutting down pubs, restaurants x movie theaters and other places are people gather >> fantastic dribritish compani under huge strain. workers who are finding their jobs are under threat or going, through no fault of their own. to all of them we in government say we will stand by you >> here is a very rare sight traffic is moving on los angeles freeways l.a.'s mayor is praising the residents for taking his order to stay home seriously and he's seeing the evidence from on like traffic maps

>> every freeway was green that hasn't happened in my life. i've been very proud of my city that even before yesterday oos announcement the measures we had done earlier in the week, people are abiding by them. they care about their loved ones, each other and they want to get through this. >> you are up to date. you can get continuous updates at cnbc.com. ty thank you very much. new york governor andrew cuomo announcing a stay at home order for the state and contessa is live in manhattan with more as we're at session lows. >> reporter: 100% of the work force deemed nonessential is ordered to stay at home. no switching on and off with your spouse to go into the office those who are out and about can still use mass transit but only if it's absolutely necessary let's talk about wh wo is deeme essential. that is health care, grocery

store, pharmacy, bank, child care the governor was even asked if services like verizon and apple are considered essential he said absolutely he's asked the internet service providers to ramp up their capacity and to make sure they are not charging people on data. for businesses that do not comply with this order, there will be consequences fines or summons we're told if grouds gather, the police will come in and break them up. they are unlikely to get tickets. there's now a 90 day moratorium or residential and commercial evictions. why is this happening? >> new york state that accounts for 6% of the nation's population accounts for some 50% of all coronavirus cases very shortly the governor and the mayor of this city say that we may be in a predicament where they don't have the life saving supplies needed, that they don't have the 110,000 hospital beds that may be needed the deal with this coronavirus outbreak.

he says it's essential that if you do not have to go to work, you stay at home tyler. >> what are the treats like in new york city? >> reporter: dead. dead i have not seen it like this even after hurricane sandy came through lower manhattan where i'm standing now there was water up to here it all swept back out. the businesses were wiped out. there was still far more activity then than what i'm seeing now >> thank you very much stay safe. kelly. >> despite states acting fast now to flatten the curve of any infections new data from test results show it's going the other way and steepening meg has more for us. >> reporter: those kinds of measures are exactly the kinds of things that health care experts say need to be happening. still, as testing capacity increases, we are seeing numbers rise very quickly. there are other signs experts point to including a number of people going into the hospital for influenza like illnesses and

things like that that imply we could see an up surge in these cases. u.s. cases now surpassing 15,000 we showed you some graphs yesterday looking at modelling done by rbc about when the u.s. intensive care capacity could really start to be strained. originally they were look at that dotted orange line that showed the capacity could start to be strained in early april when u.s. cases hit around 30,000 now just looking at the growth and the numbers there they seeing, look at the orange solid line that's what they are currently modelling saying that icu capacities could start seeing real strain next week. we are starting to hear about this the concerns about supplies, available beds this is real concern that we're hearing from people who are looking at these numbers which are rising because of inkreets creasing testing capacity but the disease is around in large numbers. tyler and kelly. >> is there a way to separate

what you just nailed there, meg, and that is the idea that now a week ago we didn't know what we didn't know. now we know more about what the level of infection is. is there a way to separate that so you can say, this -- we're seeing more because we're testing more or we're seeing more because more people are getting sick >> well, health experts are using every available tool right now. unfortunately, the testing still isn't as broad as it needs to be to know everybody who has the infection or who has had the infection. there's now technology being developed and roll out known as antibody testing that's a way at looking at who had the infection in the past. that's helpful for surveillance and getting a better grasp of what this epidemic looks like in the united states. right now they are just using every tool they can looking at flu data, things like that to try to get a sense of how broad

these infections are right now >> okay. meg, thanks very much. meg with the latest there. let's get the latest on markets with the dow near session lows dropping about 435 points. that's a 2.1% decline. the nasdaq continues the out perform. it's only down 1.2% as the market looks towrap up an ugly week of trading. oil is plunging again ending one of its worst week in history >> kelly that's right. oil plunging into the close today. you can see all this red behind me in the last two minutes it got more negative wti sinking more than 20% and brent shedding the gains it made earlier. opec leaders would immediate with texas energy regulators wh are considering cooperating with russia and saudi arabia to reduce texas oil production for the first time in decades. emergency measures from around the world have not been enough to stop the sell off as demand and supply concerns persist.

wti has dropped by 55% so far in march and both wti and brent are on pace for their worth months ever back to you. >> thank you very much still ahead, share of chipotle declining after the company teamed up with uber eats for free delivery. chipotle ceo will join us to discuss how his business is fairing a and the other steps the company is taking to deal with the coronavirus outbreak. we will be right back. plapity. emerson. consider it solved.

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. welcome back stocks are at fresh session lows the dow down 2.5% just briefly more than 500 points rite now. the nasdaq still hanging onto a relative decline of 1.5% here's what's going on with oil. as we mentioned at the close, wti plunged more than 20% just kind of right into that event. we had been trading throughout the session. that happened all at once. what's going on here >> i think the realization, kelly, that the demand destruction is mounting by the day.

you guys have that traffic map on a few minutes ago these numbers just keep growing. some of the estimates are as high as 20 million barrels a day lost consumption that's about two saudi arabias these days the producers, whether the texas railroad commission want to curtail, they can't get it together enough to make any kind of meaningful difference unless it was really a severe reduction in supply. this is only mounting. >> i wonder do we really want to go down this road where we're joining the cartel of oil producing countriecountries. i don't want that industry

destroyed. are there other ways to achieve an out come that could help crudes decline from hurting those important parts of our economy without joining up with russia and saudi arabia on this. >> that's a ridiculous idea. this whole past week, they have announced significant capital expenditure cuts the recount was a couple hours ago. it was down around 20 rigs that's a meaningful amount i think we all thought there would be more. we'll see the count come down even more and more the idea that that we should join in with opec is not where you want to be

what they had been doing was operate leaner and meaner by the day. this has broken their back and they are responding. what we don't want to do is have them go completely out of business as i've been saying even if there are bankruptcies in the sector, the plant equipment will still be there the oil will still be in the ground at this point, a sort of window dressing cut back by russia or the saudis won't do much >> the price of wti krucrude is below $20 a barrel the market continues to weaken as the oil plunge continues. the dow is down about 50 points. take your point it might not even do much if we're trimming output between the u.s. and russia and saudi the opec secretary general said he spoke with the texas oil regulator on current market

conditions if that's not going to do it here, then what will if your interest is to make sure that the oil industry, this country operates efficiently but it's not wiped out by this dpl th >> this is hugely stimlative you can't go out and shop and the layoffs. there are already some towns that have 99 cent a gallon gasoline at the local pump that's a great thing let this play out. let's not rush to have the pump price go soaring back higher and be the equivalent of putting a tax on consumers consumers need every bit of help they can get and 99 cent gallon gasoline is not only a real help when you go to feel up your tank but it also makes you feel good as a consumer. everybody knows it's 99 cents for a bad reason and not a good

one. it's stimlative to the economy >> all right, john, thanks for phoning in after that big move by crude into the close there. john kilduff, thank you, sir the dow sliding as you see there on your screen now down 567 points. there you see it in bigger picture. not that we needed it any picture. down almost 3% chipotle, papa johns and dom kn knows are higher after they lay out their delivery plan. kate roger has a look at what is driving these moves. >> restaurant stocks have a wild ride this week as more states are ordering people to stay in place. the national restaurant association has projected loss sales of $225 billion over next three months with millions of jobs on the line casual dining names have really been hit the hardest while restaurant layoffs could be as high as 9.4 million jobs,

they are hiring dominos and papa johns hiring 10,000 workers to meet demand. chipotle is continuing to staff up in new and existing locations. investors expressing confidence in those that have built out those delivery systems mcdonald's, domino, papa johns and chipotle likely more important in the age of koe vcovid-19 thank you for being here >> tell us how business has been so far and what precaution the company is taking as diners are ordering more delivery >> the rapid change in the environment that we're dealing with our first priority is making sure our employees were safe and felt confident to continue to give the chipotle experience we have got tremendous food

safety protocols in place and a wellness program to ensure that everybody that's working is working healthy and can work confidently. fortunately, we have been working really hard over the last couple of years to build a digital system as we had to pivot to our customers need around carry out and delivery, we have been able to keep all our restaurants open and continue to give customers the great chipotle experience through tlifr ri and through carry out. >> we talked in the past about delivery being are you seeing any staffing challenges we have a pipeline of new restaurants that will be opening once we get to the other side of this issue right now

we're continuing to hire one of the thingst that's great is bringing people into the chipotle company sets them up not just for now but in the long term to have a terrific growth career with us >> you talk about the safety of your employees what are you doing to ensure that they are healthy and safe are you taking their temperature every day, adding protective equipment like face masks on th cook lines and serving lines what are you doing to make sure that your employees are as healthy add possible what advice are you giving them? what are you doing >> we have a practice which we do a wellness check before anybody comes into the restaurant to work in the back of the restaurant. we practice great hygiene. watching hands, hand sanitizer if customer comes in, the other

thing we put in place is air filtration systems through our restrooms so that play a role. you can feel confident those that you're working around are healthy. we're putting all the practices in place so we continue to work healthy. >> the slogan is food with integrity. it's something to company works hard on. do you have any concerns about supply chain issues moving forward as we're seeing major shutdowns in states like california >> our supply chain has been strong we are concerned there's food with integrity approach that we take, we end up buying a lot of produce, dairy from small farms,

small family farms i do believe they're going to come under more and more pressure as demand softens across the restaurant industry and there aren't many people that buying the same type of dairy and pro deuduce and meatsa we're buying i'm hoping there will be support for those small companies in the agriculture business like young farmers and small family farms as we get to the other side of this >> we mention the delivery offer. what's next as demand continues to grow. >> human beinguber eats.

we'll be bringing on others. our main goal is to give access to the chipotle business as best we can nothing could give me greater satisfaction than chipotle stepping up and giving people whole, nutritious food, food with integrity to everybody. the best way for us to do that is really to partner with as many delivery partners as possible make sure everybody knows our restaurants are open for carry out. obviously the thing that's a nice benefit is because we have a strong carry out/digital business, we can keep our restaurants open and keep our employees paid and work through this challenging time together >> we really appreciate you taking the time to call in thank you so much for joining us >> my pleasure >> take care kate, our thanks to you. the entire state of california is under a shelter in place order. that could have a huge impact on the food supply chain. the state is a big agriculture producer for the whole country

we have a look at the potential fall out from this move. >> reporter: hi, kelly so far we're allowed to still go in our backyards to get fresh air. california is a $3 trillion economy. the governor now predicting 56% of us will get the virus over the next eight weeks he's asking for a billion dollars in federal aid meantime, where can californians still go to. gas station, grocery store, farm pharmacy, gas station. take out usually in california there's 2,000 applications a day on tuesday, it jumped reportedly to 80,000. as you mentioned, agriculture a $54 billion industry the u.s. is suspending many new visa applications for new farm workers from mexico. i'm hearing some current or existing or maybe recently expired visa holders may get through. the situation at the border is uncertain right now. nationally, more than a quarter

million foreigners come in here to the united states to pick fruit and vegetables and plant every year and the head of the american farm bureau says 93% of them are from mexico >> we are in a critical planning time for our spring and harvesting our winter crops. bottom line is we got to fix this problem if we don't, we'll face another shock several months from now down the road. >> all right another sign of what's happening in the food chain, cattle futures are at ten-year lows because the restaurant side is just drying up now we'll have a glut of beef, chicken and pork in the supermarket, i went shopping yesterday for the week and shelves are starting to be restocked but not everywhere you can see the pasta aisle is completely out what happens there's no end date for 40 million people who are non-specinonh non-essential workers to stay at home what if people violate the

order? what's going to happen we just don't know >> jane, thank you very much jane wells reporting from california the current stock market plunge is an all too familiar situation for baby boomers we have a look a i'll be listening. >> it's absolutely right and this may or may not apply to you, tyler, but certainly for millions of americans because like us, it's an all too familiar sight we're seeing. in my adult professional life, i have now seen three times over the past three decades where we have seen a massive shift in stock market valuations to the downside that have now prolonged or put off people's retirement you look at the 2001 dot com bubble burst then the financial crisis of 2008, 2009 that set a lot of retirements back and here we are again lo looking at people trying to

retire and not doing so because the stock market reevaluation to the downside case in point. nothing has been safe in this environment. take a look at some of the biggest target date retirement funds out there. this is something a lot of folks look towards to try to mitigate their exposure you buy a mutual fund. it starts to shift allocations and holdings more toward bonds ch as you get towards older ages and retirement, but look at these three. three of the birg ones right now. those offered by fidelity. also by blackrock and t row price with dates that are supposedly just five years off, they've been hammered as well over the past couple of weeks. it highlights that a lot of these funds are geared more towards stocks even though they're for retie reece because people are just living longer. if you take a look at the overall picture for how thing rs going, this is one of the reasons why as we get better and more healthy, these are the types of shocks that we'll get,

guys >> thanks very much. we have breaking news on the cme now. scott. >> okay, kelly, preeappreciate . it's really yet another sign that the turmoil in financial markets is putting extreme stress on some firms today and according to ourses, i can report that one of the cme group's direct clearing firms was unable to meet its capital requirements today and what happened then, that move forced the exchange to step in and invoke its emergency protocols to auction off the portfolios in question ronan capital in chicago was confirmed to be that firm. terror ki duffry duffey told me the auction process was completed this morning and said the group doesn't disclose who assumed the portfolios in that aupgs, but also said that under its clearing agreement, ronan isn't allowed to have outside clients so there were no customers harmed in the process. that's an important point we want to underscore

in general, direct clearing firms are responsible for trades made on the exchange additional sources said that ronan's problems stemmed from positions in the vix or the security that tracks market volatility we found out today the depository trust, the dtcc, helped coordinate the auction later say iing that it had ceasd to act for ronan capital llc so we wanted to bring you that breaking news. just really underscores stress in all different ys fareas of te market and this is just one story to help that >> when you say the portfolios were auctioned off, should we understand that another firm in the markets came in and dwrab grabbed those assets so that you know kind of walk us through that process and what it tells you about markets today, which had by you know earlier independent case, kind of been settling down >> at least one firm you have to believe stepped in and a as i said in the report, the cme

group doesn't disclose which one. but i think it's safe to assume that another one of these direct clearing firms and by the way, there are many i don't have have the act number, but many, many likely stepped in i wish i could give you names. just trying to continue the reporting on that and see if we can figure it out. just an indication of bets on the wrong side of the market because things are moving so quickly. i don't know what the vix is you throw up the vix right now the vix was at 80 and i think it was at t 60 if not lower than that earlier today, so there are extreme moves in various parts of the markets and different securities and you know, if you're on the wrong side of that, there is your vix it's 66. it was north of 80 not that long ago. just an example of trying to get on the right side of something and if you're caught on the bad side, you end up having a potential issue like ronan had today then the cme group had to

step group had to step in with their emergency protocols. >> at least a somewhat orderly process. >> from what i understand, it was very orderly >> with the dow down 645 points maybe on that report, we appreciate it. >> stocks are at their session lows or really right there as oil plunges 20% just moments ago. that report from scott wapner just moments ago about a company at the cme having financial disstredi disstres the number states implementing lockdown measures with that is the backdrop let's brink in our friend michael farr and steve grasso who will join us on the phone. michael, i was hoping this morning we were going to go out with modest losses or a modest

gain to end the week it would have been the first back-to-back as i'm remembering up days for the market, but it doesn't look that way now. how discouraged are you that the market's tone seems to be limping into the close >> it's been a tough couple of weeks for most every investor. coming into a friday afternoon, very few people want to get caught with inventory stocks on their books. play alreaarticularly for tradi and leverage trading firms so they're trying to get flat they don't want long positions if news comes out over the weekend that somehow affects those prices so to see this coming into the final hour, probably makes sense i would still hold my breath for that last half an hour to really see which direction things take. as we've had these dramatic headli headline, we've had dramatic reactions. i was encouraged with oil.

you don't begin to make a bottom until you've stopped making new lows so fingers crossed here, but a lot of this still seems kind of orderly. >> have you been buying anything, michael? >> we have, very slowly. we've also trimmed some posit n positions. but at a certain point when we hit price target, we have begun to nibble on certain things that look to be a good value like apple. for instance is one that we have started to add more to that position. we're looking at other names, too. it's interesting to see that we're looking for the names like pepsi and proctor and gamble and some of those try and true johnson & johnsons and some of the pharmaceutical companies are typically safe havens they have been more volatile in this market. a lot of days when it's just massive selling, everything gets sold doesn't matter what it is. but we know that those companies with solid balance sheets have

the stuff to endure really difficult markets and will still be here in a couple of years >> all right, steve, so as you watch the sachl same kind of ac, now it's only down 11% it had plunged earlier does that tell you, getting any information from that about you know, anything from what you can glean about what scott said was happening at the cme >> yeah, everyone on a friday like michael said, people want to lighten up their positions. today though, had a huge expiration so that's really none of this going on it just happened in a vacuum you're looking at a tail wind. so to michael's point, you never know what happens in the last half hour of the day we're getting close. we're down over 700 points i would love to think that people have to shore up their positions in the last half hour to get an incredible rally -- >> amen.

>> on cme, this gets to be you know, a shakedown situation. but i do believe going to have to see what this massive sell off that we've seen in equities has to result in people trying to buy equities and rebalance their portfolios i would not discount the ability for the market to rally aggressively at the close today. >> mike, go ahead. >> to steve's final point, for that rebalancing, i'm sorry, kelly. for that point that steve made, on that portfolio rebalance, i chair the board of a large institutional portfolio. we're going to wait until quarter end. we want to see the whites of their eyes that's part of our discipline so it might not be a day-to-day thing, but come march 31st, i think you're going to see certainly got to have more buying in equities and rebalances out of fixed income that's going to be r very important coming into the beginning of the month

>> 11 days to go each one seems like an eternity lately thank you both michael farr and steve grasso sharing their thoughts on these market which are headed lower. dow's down about 657 points. thank you so much for wahoffing. our breaking news coverage continues now into the final hour of the tradinging day >> thank you so much for that. welcome. as the new york stock exchange prepares to temporarily close the trading floor on monday. stocks sinking as we near the end of this crazy week let es east have a look at what is driving the action. oil faltering, $20 a barrel level and the broader market taking a leg lower along with it the u.s. government announces it's working to close the border with mexico. it moves tax day back by two months and provide