crazy week ending down 15% or thereabouts on the s&p >> i think the big question that policymakers are going to have to grapple with next week, will fred, and as we go through this crisis is how to balance the health concerns and health policies with now our economic health concerns and policies as the nation shuts down. we'll be waiting for any word and so will investors next week. >> we certainly will, sara, and from everyone here on "the closing bell" team, have a healthy weekend. brian sullivan picks things up now. ♪ ♪ >>. >> it was a week like no other on wall street the coronavirus crisis sending shock waves through the economy. the dow saw its biggest point gain and its biggest point loss ever this week all told, the dow dropped 17%. the worst week since 2008 and perhaps this is the saddest and

most incredible market stat that you will hear today. the dow now on pace for its worst month since 1931 on that note, welcome, everybody. i am brian sullivan. the market meltdown comes as congress scrambles to launch a massive aid package to help millions of americans who are likely to either lose their jobs or a good portion of their incomes. we'll hear about all of this in moments. senator pat toomey of pennsylvania will be joining us live exclusively he has been inside the 11th hour negotiations on the hill and we'll get answers on what the ultimate stimulus plan may look like and what aid packages are likely to come and whether regulators are considering banning shortselling and reinstituting rules and that interview is ahead let's break down this historic week and joining us now our friends guy adami joining us in moments. >> we learned that a big chicago firm, ronan capital was unable to meet its capital requirements and this forced the mercantile

exchange to invoke emergency rules and auction off its portfolio. guy adami, we lost a few hundred points toward the last hour. do you think that news exacerbated the selling and do you believe there are more firms like ronan out there >> yeah. that's been my concern, brian. listen, folks. it's friday, we are one week closer to getting on the other side of this and everybody should take some comfort in that, but yeah, i think that's exactly right and that's something we've been talking about for a long time that you're probably not going to see the bottom of this until you see a firm or a number of firms effectively blow up and so, listen, i don't wish anybody any ill will whatsoever, but in terms of trying to identify a culmination of this, that's as good a sign as any i also take some comfort in the fact that although i know the s&p was down big again today and know that i understand, and take some comfort in the fact that the bond market is showing some signs and i know it sounds

ridiculous when it's 28 basis points and it's showing some signs of stabilization and i think that's really encouraging because if you start to lose that then things get scary so that was encouraging. >> and also, by the way, quickly, the vix didn't explode. although it's a painful day you have to look for some green suits. >> there were some rattles in the mortgage-backed bond market and that brings back a lot of thoughts of 2007 and 2008. >> yeah. >> the federal reserve stepping into that market and getting notes back from mortgage-backed, and i don't want to get in the weeds of mortgage-backed securities, but if we can -- i don't know, put a band-aid on some of these issues now, should that calm the overall equity markets? >> yeah, look, but i think liquidity issues in the market are critical rid nght now and wt we're hearing with leveraged players and hedge funds, obviously the derivative factor

of the mortgage markets are a part of what made 2008 extraordinary and extraordinarily difficult for not just policymakers, but for market participants. there's much less liquidity in the market today sadly and that's good and bad. the byproduct of taking leverage down at banks and prop desks, et cetera means that i don't think we have the same problems. the problems here are ones that are absolutely related to the stick being thrown in the bicycle spokes of the global economy and truly stopping we're going to see, and it's impossible to know the duration. i also read j.p. morgan's piece today and these are guys that are on "fast money" all the time and marco and crew say you should be looking at 2021 of plus 15% on the s&p. obviously, as we know, the curve in terms of the virus and the

peak impact is not only critical on a health perspective, but it's critical for the markets in terms of how severe and how deep this contraction will be. >> listen, i think that we go through the markets this month, guys, this month you're looking at crude oil down 49%. bitcoin down 49% the s&p down 31% everything that can be sold is apparently being sold. we've got some data from epfr. they track fund flows. 90 billion went into cash this week is cash still king, guy adami? >> right now it is tim can speak to the u.s. dollar, but there clearly seems to be some rush for the quote, unquote, safe haven of the u.s. dollar and let me be clear what i said at the top of the show i didn't say we're a week away from this ending we're one week down so that makes by definition one week

less that we have to deal with this i am trying to somehow assuage some concerns out there. i know there are people upset and rateightly so and each weeke can plow through this is getting to the other side on the health front and the economic front in terms of what you said about the markets, i'll say again, i never thought the s&p 500 should have been where it was in the first place and i've been saying that for months and months and months with the market going up and up and up. so you can make an argument now. we're getting to levels that have probably overshot to the downside, but i still think that concerns of levels we probably have another 8% to 10% if you want an absolute level i think scott mentioned 1700 in the s&p which technicians will point to i would point more like 2030 which would be the 50% retracement of all things of the march '09 low and the recent all-time high and these are

things that you need to be looking at again, i understand it's extraordinarily scary out there, but each day that goes by is one day closer to getting to the other side >> 2030 on the s&p 500, tim seymour would be about 11% or so from where we are right now. 1700 would be an entirely different story on a market already down 30% this month. do you see that much more downside or do you disagree with guy? >> it's impossible to make this call the markets are reacting to the velocity of the move and i think guy's talking about the relative victories of where we've traded over last five days. you can make an argument that the market is in a wide range, but has been thrashing around this kind of 23 to 2400 level and the fact that if you look at the peak of the financial crisis where vix levels got to where we

got earlier in the week you started to then see this moment where, for example, i think from october 24th to november 3rd or 4th, the vix declined by 45% and today as we got below 50 and you look at the chart you can only hold extreme volatility that high and i don't think that will be the end i think what we'll do is we'll continue to trade lower into next week especially if the policymakers continue to step forward, clearly local and state governments on top of what the feds are doing are being very aggressive in terms of trying to change not only the behavior, but the tone of the response, and i think that's good for volatility those are scary headlines. i live in new york state and those are headlines that a lot of people were reaching out and fearful of and those are the kind of responses that we have to the health crisis which is an economic policy. i think that the markets in

terms of a volatility perspective will trade lower. >> listen, guy adami, i'm hearing from people and it is a very sensitive topic you don't want to come across as being crass in any way or unfeeling or uncaring because none of us are, but i'm hearing from a lot of people saying when do we balance out the economic considerations of this that we've got to consider where we may be in four to six months economically and how do we balance that out and i'm also hearing people saying that there's a panic in the market in part because politicians seem like they are panicking. do you feel like there's anything improper in any of those statements >> i'll tell you this, i put no trust in our politicians whatsoever what i put a great deal of trust in is the good will of fello citizens and i think you're seeing that around the country

i don't think any of us are relying upon the intellect or insight that many of these men and women have what i am relying on is i can do something for my neighbor and that's what's gotten us through this in the past and it will get us through that, and that's the reality of the united states when we fiset common enemy, we put our differences aside and we do what's best for our neighbors and that is my answer to that question >> again, i have no idea how that goes on for, but each day that we can plow through and get close to another side is a good day and i think that's the way we have to look at it and we have to cross off the days on the calendar and you're in i more than i am do you agree just as a person and not as a trader about the policy response? do you feel like it is

appropriate? do you feel like it is sufficient or insufficient >> i think the most extreme policy we can exert to allow people to live their lives and doesn't create hysteria, but government officials talking in stern, real, in many cases restrictive tones and edicts is important. the sense that we're going to be different in this country than the rest of the world and we are different in this country, but this epidemic will react the exact same way we have to let this curve get knocked down and ultimately we'll have to pick up the economic pieces and back to the markets. the things that the market is trading on are these new headlines and the next phase will be the job losses today the market rhetoric was certainly focused on the jobless claims number that we'll get next thursday and there are a lot of estimates and people are all over the map on the bid ask, but 2 million to 2.5 million is probably somewhere in the main and that's shocking.

this is the type of job loss that we haven't seen in this country in a long time and it wasn't this extreme and overnight in the financial crisis even though that was about changing the job loss trajectory and that was one of the things that the fed went after when it started to create monetary response and i'm not sure we got that support and we came into this at peak employment we came into this at extreme market lechls and that has much to do as where we are in the markets right now as putting the virus in the context of all that. >> all right, guy, good stuff. guy adami, tim seymour best to your families and what tim was referring to was a goldman sachs report and i'm sure you've heard about it if you were watching cnbc all day that estimates that next week's job lo job loss unemployment claims it's a 250 or so thousand now in a week

if that occurs we would have never seen that that quickly in the history of this country. all right. remember, be sure to catch our special markets report "markets in turmoil. on deck, the race to rescue the economy and its workers. lawmakers scrambling at this hour to come up with the massive aid package to save the american economy while keeping us healthy. we'll take you to the front lines of those high-stakes negotiations and senator pat toomey joins us exclusively when we come back you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis. our retirement plan with voya gives us confidence.

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welcome back you are looking live at capitol hill where law makers are working feverishly to come up with an aid package to rescue the economy and the workers as the pandemic spreads kayla tausche is live in washington with the latest and where that stands at this hour kayla? >> brian, senate majority leader mitch mcconnell has moved forward with the technical process to get the ball rolling before a potential vote on the stimulus package on monday this is even as what exists now as just a skeleton outline of what they expect the different buckets of this aid to comprise.

remember, negotiations between republicans and democrats are still ongoing. the fine print of this still needs to be worked out, but the senate majority leader wants to make clear that this is going to get done and it's going to get done quickly here he is on the floor just moments ago. >> discussion is going on as we speak. the goal is to reach agreements on each of the four components of the legislation by the end of the day. senators here are working and we're going to deliver >> there are still a few parts of the package they're waiting to fill in. >> the treasury department had outlined a 30 million plus package, but democrats are eyeing additional items that they want included in the package in order to secure their votes and some of their proposals are in the realm of hundreds of millions of dollars in additional items.

also conditions of aid what are lawmakers going to demand of businesses in exchange for these loans or cash injections and third, additional agency and business funding the white house had requested close to $50 billion in additional agency funding earlier this week. that could go up and then there's the whole host of businesses, brian, that have been asking for aid that are now currently included in the bill as it stands remains to be seen whether they will get a piece of this massive package. it is likely, brian, that there will be a vote on this bill before there is a score on the congressional budget office meaning this is an estimate of exactly what they're earmarking and it's really unclear or it will be unclear how many businesses could take advantage of it and what the final cost to the american taxpayer would be >> all right, kayla, thank you very much. why don't we tray y to clear up some of those hanging questions,

senator pat toomey thank you very much for joining us here on cnbc. you heard kayla. where do we stand right now and do we have to wait for a cbo score to approve anything? >> brian, we don't have to wait for a cbo score to pass something. we would like to have as much information as possible about the total cost there is an urgency here and several components of this or all of it is urgent. now there's a lot to argue about how individual components are coming together, but i think it's likely that there will be a vote early next week >> have a day in mind? monday tuesday? >> the leader said it's going to be monday. he controls the schedule so, you know, we are under a lot of pressure, those of us on the team to get this poll together and tw get agreements ironed out by the end of the day today.

the legislative language developed to reflect that tomorrow and a vote on monday. that's the goal. >> listen, i understand there are going to be some sticking points and kayla reported on them, but do you get any sense, senator that we are facing a national crisis. it doesn't matter what your political party is do you feel that there is some bipartisan action taking place unprecedented modern times perhaps in that room >> well, i would say definitely. that's been my experience. so everybody acknowledges that this is a very, very dangerous circumstances both obviously health wise and very much so economically, i mean, take my state in pennsylvania. our governor shut down all non-essential business last night and there are exceptions to that and that's a drastic step and you saw what happened in california, my goodness so our economy is going to be a dramatic contraction in the economy. there are entire businesses that

have zero revenue and are going to have zero revenue for some time to come, hopefully a short time, but some time and there has to be a response and one of the things i'm focused on is making sure that we stand up a broad-based, large credit facility that will be able to be available to stabilize the markets which means the fed step in and do that effectively, i think, in several different financial markets over the last week or so, but also to provide liquidity to firms so that they can stay alive, pay their bills and hopefully retain their employees and be there when we get on the other side of this. and that's one of several large parts of this bill >> how did you come to the income-level considerations? what we've got on nbc news is that people are making up the 75,000 are eligible and families making up to 150,000 will be eligible for direct payment, but you know this. here's where it gets sticky.

in western pennsylvania, the 15th district where you are, there are people that are car salesmen, software salesmen, people whose income is widely variable and maybe last year they did well because the economy was booming and now they're looking at maybe no paycheck for months. why the income limits there when there's so much variance and so many different types of industries >> when you're moving fast to respond to a crisis it's not possible to have every possible contingency perfectly covered. that's one thing that's for sure there is going to be a plus in unemployment benefits and there is a liberalization, participation in unemployment. there's probably going to be direct payments paid to people who have paid taxes which, by the way, has a lot of problems with it, right

most of them will go to people who don't actually need the money that it hasn't done much for economic growth, but be that as it may, i think that's going to be part of this package and the hope is that through the various components people will get through this and when we do come out the other side people are reasonably current on their bills and they have a job to go back to. >> i want to ask about some market issues, senator, if i may. there's been a growing chorus, some chorus, anyway, that because of what's going on and the hardships of people trying to work from home, et cetera, that we should temporarily ban short selling or reinstitute the uptick rule without getting wonky, and you can short a stock when that stock is on the rise do you think either of those are appropriate? >> so i am not a fan of limiting the ability of the market to find its level it's painful to watch and it's

painful to experience. there's no question there's been tremendous wealth destruction, recently i am hopeful that the market can come back when the economy comes back, but if we start limiting trading or closing markets or constraining the ability to trade then we start to introduce some artificiality in the markets. we don't have good price information and i think we're in a worse place. so i'm in favor of letting the market function. >> on a different topic, there have been reports out there that senators richard burn and senat senator leffler, they can say they've got blind trusts and programs does the senate need to take action or at least look deeper into both of those senators and their stock sales? >> you know, i don't know anything at all about the circumstances of those situations so i have no idea of whether they are a matter of concern

my understanding at least in one such case the transactions in question have been turned over to the ethics committee. the ethics committee and this is what it exists for to look at what happened and determine whether or not there was any kind of ethical violation. >> and finally, the issue of buybacks you've heard the president talk about it that sounds like the white house would be in favor of preventing companies from buying back their own stock if they take government aid. would you be in favor of some kind of limitation on companies that take bailouts or aid at least until that money is paid back >> yeah. no, absolutely the purpose here is not to provide credit for companies for taxpayer-funded credit to buy back their stock so for the duration and for the company that accesses these credit facilities that we're hopefully going to stand up soon, as long as that loan is outstanding, i think it's quite reasonable to say you can't buy

back your stock with this money during that period of time once that money is paid back then hey, companies need to be free to do what makes sense for their shareholders and that might well include stock buyback, but for the duration of an outstanding loan or guarantee, as the case may be under a program like this, i think it is reasonable to say you can't use this money to buyback stock. >> senator pat toomey of pennsylvania it was a pleasure to have you on cnbc thank you. we look forward to that bill getting passed monday or tuesday. thank you, sir. >> thanks for having me, brian >> we'll head to the front lines of the economy and you'll hear from one huge restaurant franchise operator about how he's dealing with the devastation from the fallout of the pandemic and what's going to happen to the employees? we'll be right back with that after this

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>> we are stepping into situations as a company and offering a service fee which is essentially a royalty as well as rent deferrals for us, a unique thing about our business is we typically charge rent as a percent of sales and unlike maybe normal business that's paying a fixed amount a run also goes down as any sales goes down. so we're all really chipping in and it's incredibly important for us to keep our franchisees viable and open through all of this so they can serve the communities. >> that was the ceo of mcdonald's sitting down exclusively with cnbc earlier today, but now let's hear from one of the nation's largest franchise operators. it owns convenience stores of

over $2 billion all sport started with one shore the dhanan, i group, is one of the largest businessman that nobody has heard of in the united states. you obviously employ tens of thousands of people. how are your restaurants doing right now and what is the situation with layoffs >> well, our restaurants are doing okay under the circumstances and we have shut down all of the dining rooms and doing delivery and carry out and we are doing everything we can keeping the restaurants open to serve the american public in this time of need and went through drive-through and carry out. >> how much are your sales down right now and you're geographically across part of the country and the large part of