thanks andrew, we have 20 seconds i wanted to look at the futures quickly again. the dow is now positive almost solely due, believe it or not, to boeing. not quite. 21 points for boeing you can do the math, 22 points the other averages are down. we'll be back tomorrow thanks, andrew up in connecticut -- thank you first, becky. but i -- i'll do that tomorrow we'll see everybody tomorrow cnbc's special coverage continues right now. >> welcome to "squawk on the street," i'm david faber along with jim cramer who is back at our headquarters, as he has been every day throughout this economic crisis. we start this morning, well, with the markets you heard joe kernen discuss the dow futures which are up, given the performance of boeing which has had a rebound. the markets seem to be retreating slightly from that historic move yesterday. jim, let me bring you in

a move like we saw yesterday doesn't typically begin the recovery from a dow turn the likes of which we've had, does it >> no this is one of the greatest one-day bull markets i've seen. you had to come in at the darkest hour, if you didn't, you're coming in on total quicksand. we had a move that was so accentuated by the machines, algorithmic. they exacerbate which ever direction it is. i hate it as much when it goes up as when it goes down, it brings in a lot of people who think maybe it's all clear it's not all clear it's almost like you're lucky if you bought yesterday and you should ring the register today we've seen prices that will hold up but everything i've heard this morning is about how we're ready and open for business, but no one talking about going to where they're ready. boeing, yeah, that's great

you want to fly? when do you want to fly again? >> that's a great question, jim. when you talk about what life is going to be like once the crisis passes -- >> right >> or when people go back to so-called normal life, which the president indicates he would like to see as soon as 2 1/2 weeks from now or so, you still wonder what behaviors will be like will people be flying? when will people stay in a hotel in a significant way when will tourists return to any part of the country? either within or from abroad so many other constant things we can go through i don't know the answers do you >> no, but this is really the focus. we've seen the package go through. it's a great stimulus. we know that there are people -- we've got all the figures who will get some money. that money may help them pay -- it's almost like lunch money for some people. let's take the industry that was at the epicenter, you see

numbers alongside south korea and taiwan you have an industry which we keep hearing about from the president which needs to be saved. but secretary mnuchin is a good business person. why do you save an industry that may be years from now it will come back. maybe it never comes back. the world has changed. it's changed for office buildings. you and i heard tom barrack talk about maybe the mortgage industry needs help. will we still have huge offices when we know it turns out that zoom and webex work really well? i think it's time to think about the country after we beat this it's different >> you really believe -- you don't believe that -- we are social beings. there is a need to want to congregate and be with each other, even in the workplace granted i think many people are understanding they have an ability to work from home that

perhaps they didn't necessarily fully realize previously that doesn't make it less likely that they're not going to want to congregate with co-workers and that work is still easier done in some fashion -- you and i will be back together one day, right? i'm looking forward to that. we're better when we do that i agree. i do like companionship. we like to work together we feel the program is definitely better. if i'm running a company and trying to find out how to meet the esg, the new world, what a great way to say i just cut my carbon footprint everyone is staying at home. that may be an imperative. the rents have to come down. i don't think many companies want to pay the same old rent when they have congregation rooms but not necessarily people being at the office. i look at behavior you can argue it's too early to think about behavior do we need all the airlines? do we need all the oil companies? do we need cruise lines? i want all those people from

cruise lines to get jobs i'm not anti-job. cruises are a great, inexpensive way to take a vacation but there's a pandemic centered on some places and some things if you cut the price to nothing -- a round trip to l.a. the other day, $59 round trip to l.a. you want to take that? sounds like a bargain. does it sound like a ticket to a hospital if there is a hospital? ticket to a ventilator if we have ventilators that's a ticket i don't want to ride >> i understand that i want to talk more about what i would assume we agree on will be the continued conversion to the cloud by so many businesses because of the trends you're talking about. the overriding story yesterday, in part because it sent the market higher and this morning is the legislation we have gotten out of congress i want to get to eamon javers who has not just the details

that we're aware of but some details nobody is aware of yet fill us in >> that's right. so this is a handshake deal last night. the bill text has not been released yet we're scrambling to figure out what's in this massive $2 trillion bill. i've been on the phone texting with senior administration officials. some of the details of what's in there we're starting to get from sources. one is that the payroll tax cut that the president was pushing for is in this deal, but it's only on the employer side. remember, the payroll tax is paid by employers and employees. originally it was proposed that the tax cut would be on both sides of that equation now i'm told by two senior administration officials that the payroll tax cut is in this deal but only on the employer's side, not only the employee's side employees would benefit from the direct checks that they're getting, also from this enhanced unemployment insurance, but not from a payroll tax cut

employers -- this is not free money for them they would have to pay this back, the payroll tax holiday on a staggered basis over the coming years think of it as you have to take the payroll tax holiday in 2020 and pay that money back in '21, '22, and there's a formula in there for how companies will have to do that. on the airline front, that was the major stumbling block that kept this thing delayed late into last night. they agreed to the deal just around 1:00 amt las.m. last nigt there are direct grants to the airlines that do not have to be paid back, but they must not make layoffs through a date sert certain later this year. there's some period of time in here in which the airlines have to agree we'll take the money and not make layoffs there is a provision here for the government to take an equity stake in some of those airlines, and taxpayers could share in the upside if those companies come

back the president is aware and did agree to the specific provision that's in there that was highlighted by chuck schumer last night which prevents the entities controlled by the president, the vice president, members of congress and others to take advantage of aid through treasury that would specifically seem to be aimed at the president's own companies that he owns the president is aware of that provision and did agree to it. one more carve-out that we don' have is specifically whether or not that provision would apply to aid coming from the fed or if it just applies to the aid coming from the treasury, which would be more politically directly controlled by the president himself. a lot of new details there that payroll tax cut will be for employers only not the employees. >> eamon, so many questions as

well before we get back to our conversation, the 500 billion being allocated for liquidity assistance, part of that is that 60 that's going to the airlines. how is that going to be distributed? i feel like there's a lot of questions in terms of language 50 million levered up by the fed, 4 trillion. who gets it? 500 employees or more? 500 employees or less? do you have details? i don't have details on that yet. one of the concerns democrats had about this was that the 500 billion would be under too much direct control by the treasury secretary. they wanted an inspector general and a committee of oversight on capitol hill to oversee that, to look into that, see how it was being spent. they did get that. treasury did agree to that in the end. so there will be an inspector general watching over all of that to look for fraud and abuse in it. my understanding is that there would be a lot of discretion

here for the treasury department in terms of doling out some of this money we have to wait and see what the details are as they emerge through the morning. >> so much to keep an eye on we appreciate you doing it for us as we all try to stay on top of this. jim, just give me your take here in terms of what you're hearing specific to the legislation and how it's going to be implemented. so much of it yet to come. >> i think there's some industries that are easier than others boeing up literally 50% from a goldman upgrade. a lot of that is because it's so simple to give boeing money and have not a trickle down but actual payments. there are 1,700 companies that supply parts to boeing, 2 million people getting the possibility of the restart of the 737 seeing an influx of orders of all places, china. i come back and i say that industry is easier what happened to the small and

mid size business? payroll tax cut for business -- for the managers, that's heinous. it's completely heinous. we help the rich people? that wasn't the purpose of what i heard from secretary mnuchin or speaker pelosi talk about the idea was to get money into companies to make it so the businesses stay open kevin johnson yesterday talked about a 30-day pledge, pay whether they open or not i don't think we're talking about the idea that a payroll tax cut -- holy cow. that will help a dry cleaner or restaurant owner wow. hey, man, those people have just been had >> that is the key question here, how you get money in the hands of -- there are direct -- there are direct payments made, but you referenced it earlier. some of it may be lunch money at this point how you actually are going to be able to sustain so many workers out there that we've talked about. hair salons and nail salons,

gyms you go on and on >> it was a great idea -- i hope it survives, the loan to those companies that's forgiven if they keep their people on. now that is substantive. the idea that the payroll tax cut -- you know what rich do like to get richer it's an amazing thing. it worked in the beginning of time i don't think that we're trying to get a new social order. speaker pelosi was under heavy pressure to get stakes in all these different companies, so when their stocks go up, cash them in, help the treasury because the treasury is paid by working people that didn't happen in return, what i hope that did not occur as part of the package was just a terrific benefit for those who are already wealthy. i think we have to focus on the fact they did come up with that loan package that loan package will make it so we can get open for business if people are willing to be with other people in a restaurant,

which i'm not sure about yet i don't know, david. i love you, i love your family, come easter i can't see breaking bread with you >> no, i look forward to the day we can do that >> so do i >> i don't know when that is other then when there are anti-virals that are effective so people are not concerned if they contract the virus. the day that comes, if there's a vaccine, that will erase our concerns, i guess. >> right >> and when the warmer weather comes and perhaps the transmission rate declines dramatically in the new york area they're in the midst of a crisis. other parts of the country are dealing with potential overwhelming of their health care systems and that's where things stand. a lot of the country is not like that >> no. it's -- the quarantine, if you were in new york, that's very daunting there's some incubators in new york that people may not have in other areas that are similar to what we're seeing in madrid,

which is now trying to -- unfortunately, may surpass milan. we have to stay focused on that. we do have the -- the beijing shanghai model, hong kong model, there's some reinfection there and then the milan/madrid model. i don't think anyone knows which we are yet in new york, it sure does unfortunately -- if it's as much as governor cuomo is talking about, we'll be on the milan/madrid path, we won't be on the beijing path. it's worth knowing which one we are before we decide to play happy days are here again. >> yeah. obviously the shortage of ventilators is a key part of that and other equipment as well and still waiting on testing though it is finally really ramping up >> do you have testing in your area >> not as quickly as we'd like >> right if we tested like in south korea, then i think i would be willing to give you a high five

like we did every morning for the last five years. but i'd like to see the tests. right you to i'm contactless with everybody, including my wife, which is odd, contactless with your wife and kids, s suboptimal >> that is suboptimal. sorry to hear that >> it's amazing how -- you don't like your same when you're going to bed with the facetime >> i'm starting to do the facetime happy hour. have you been doing that >> i did a facetime birthday the other day. we all did zoom. i might as well invite eric in, the ceo of zoom. >> i recommend it. jim, when we come back from this break, you and i will talk a bit more about stalks, the old-fashioned way we used to given the moves we've seen "squawk on the street" is right back life isn't a straight line. and sometimes, you can find yourself

heading in a new direction. but when you're with fidelity, a partner who makes sure every step is clear, there's nothing to stop you from moving forward.

welcome back to "squawk on the street" as we count you down to an opening bell in about 12 minutes from now the floor of the new york stock exchange remains closed. we remain in different locations as well. that doesn't stop us from doing a mad dash this morning, jim nike, i know, is a feature,

having reported earnings as well >> first, david, what day is it? >> it's hump day >> thank you i need some normalcy without normalcy and continuity, it's too rough to be able to handle these times nike, rather extraordinary quarter last night reminded me of the days before covid. one great thing about this clinic, you learn to do a conference call, he talked about this, china. people got back to work and retail traffic began improving today 80% of stores in china reopened the numbers are very good in china. which is why you will see this stock up one thing that's amazing, they very quickly shifted to an online strategy where necessary, but they've given you a template about what can happen when you have a worldwide company with a great balance sheet that has tremendous reach and a product

that people want i recommend anyone reading this to sense there is a path for a lot of international companies that make products that are in strong demand. the path is the nike path. this is going to be studied one day in business school -- they still have business schools now that we have -- they probably proved to be too expensive it's absolutely the clinic we're looking for. it made me feel like, you know what business will come through this. not small business i predict many bankruptcies, but big business with big balance sheets nike, starbucks, they'll win >> you mentioned starbucks as well yesterday kevin johnson talking to us about how china is coming back online. we didn't get the traffic numbers from him but it is following a similar trajectory >> in wuhan, people are just starting to open up. we hear and see pictures of

night at china, it looks like people are being forced to do things forced to shop i don't know i'm waiting for shanghai disney to open. disney has enough clout, they can say you know what? it's not yet right disney is trying to put -- not that nike is doing anything wrong. nike, you can do online. starbucks, welcomed in that community. disney does not want to be in a situation where they start it and someone gets sick. i commend them they certainly are under presh v pressure from the government to open and they're forgoing revenue in favor of customer safety and health. >> we'll come back to names like disney which along with others had an up day yesterday. right now the market not looking nearly as strong, it is a mixed picture given the performance of boeing nike also going to be up sharply. we're back after this. we have an opening bell in about nine minutes i know that every single

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welcome back jim, at the beginning of the show you were talking about how this crisis will change behavior for the long-term. i briefly mentioned something that has come up in a number of conversations for those who are looking for opportunity. the conversion of the cloud. we talk about it all the time. we talk about it in our normal days, it's been a key theme of yours for years. that will pick up the pace given all the things associated with that >> totally i've been dealing with a bunch of companies that are very oriented towards that crowdstrike. cisco. cisco is a behemoth, they're talking about huge numbers

minutes being used on their video. also if you're in singapore or india, doesn't matter, you're on one chat things will thing. that's cloud based if you're brick-and-mortar, it gets worse and worse the layoffs. the stores closing if you look at the stock prices. i'm a huge believer in david simon. i wish he would come on. he's great don wood, too. steve tanger, $6 stock, is that model where you want to go i think amazon can go to $3,000 in this market amazon web services must be just crushing it. yeah i think the world has changed. very few people i know want to admit this people want to go back to the way it was it can't it was too lucrative not to go back >> when you mention amazon,

given everything new york is going through, i can't help but think about the lost opportunity there. jim, stand by. we want to get to phil la boebe, who has more news for us about a major car manufacturing plant in the country that will be stopping production. >> i believe this is the last final assembly plant still functioning. it's the bmw plant in spartansburg, south carolina it will be shutting down starting this friday they'll shut it down for two weeks. the significance here is that this is bmw's largest plant worldwide. i think last year they built 420,000 vehicles a good chunk of those are exported many to asia obviously the world has changed when it comes to vehicle demand and in addition to the news about bmw, let me give you sense about how much demand has changed. new estimate in terms of auto sales this year, dropping down to 14.4 million vehicles

just for comparison, the u.s. last year, vehicle sales were 17 million. new vehicle sales. now the expectation, 14.4 million for the year, maybe as low as 11 million for the month of march >> phil, yesterday we had adam jonas join us from morgan stanley, he had 13.5 million s.a.r. for the year. phil, how much of this is about the workers in south carolina and the concern about the virus versus that significant depletion in demand? >> it's mainly about workers and mainly about the shelter in place orders, especially for the supply chain we're to the point now where, you know, all the automakers, generally speaking, they're using the same suppliers, they may be building different parts with different specifications, generally speaking they're using most of the same suppliers many of those suppliers are in states that have shelter in place orders not only do you have the big three shutting down plants,

we've seen it from honda, toyota, now bmw. it will be hard to build vehicles whe while we have not seen it yet in south carolina, they don't have a shelter in place order, but it's moving away from new york, california, hitting other states that is probably part of the decision in terms of the decision bmw made. >> we were so thrilled when we got to 12.5 in 2010. we were like wow, happy days are here again >> you were down to about 10.2, 10.3 million that was the low point before they slowly started moving higher it would go up to 11, then 12.2 million as you got into 2010, '11, '12 what's interesting here, after that happened, we had gm and fiat chrysler go through the government bankruptcies, ford, it didn't go through a

bankruptcy, it did the same thing in terms of redoing its balance sheet, they said if we ever have something like this again, we have a fortress balance sheet. we have a balance sheet so we can afford if the industry goes down to 10 million in volume, we'll be okay. we won't have to see things collapsing as we did back in '08. nobody thought we would be in that position, it's getting maybe not as bad, but it's a big drop going on right now. >> phil, thank you >> jim, in the name of normalcy, i'll come back to you with something we would typically do when we're at the new york stock exchange when carl was off, ask you what you think the key to the market is. >> how about a return to the old days there's a deutsche bank piece, reducing our price target to 270 but tilting bullish from here, yes, apple harking back to when we used to

talk about a stock that went over a trillion dollars, it's back over a trillion you start talking about maybe they'll be opening stores around the world. the service revenue stream is good i paid my bill last night automatically. you know what? let's watch apple. if apple can stay the course, we might have something >> yeah. of course apple is only down about 16% for the year versus the decline in the s&p that's roughly 24% as we get an opening here, sort of a mixed picture as you might expecks. expect. you were talking before we went to phil about the shopping center mall operators. obviously the reit sector has been under enormous pressure, as you might expect commercial, retail and the like. the concern being that many of these landlords are not going to see their tenants pay their rent >> right we were talking about it earlier

in the show. talking about the word forbearance. the idea of forbearance meaning let's just take a time out this time out -- look, that's what you do with your kids when you weren't allowed to knock heads anymore. there is no such thing as a time out. there's such a thing as you owe me money or else there was a deal that broke down yesterday. the people who will do the best here might be bankruptcy lawyers. there is no such thing as, you know what, guys, i'm not doing that well. maybe at a rental level for individuals we could have that there are laws, there are rules, there's real property considerations and people owe money when you don't pay, it isn't like you say, you know what? just -- i'll come back to you. no you're sued. you're sued. you have to pay. i think that unless you come up with something -- some momentary change in the bankruptcy laws,

which will not happen, i think we'll be faced with a lot of companies that weren't able to pay and didn't get the time out. >> yeah. no listen, you're certainly potentially correct in that. that chorus of people who were asking for that time out, that continues. it's not going to happen you remember it's almost two weeks ago when i asked secretary mnuchin, last time you and i were together when we had him on that morning about that possibility. we're not going to have that national holiday, that stay in place forbearance up and down. we do have the stimulus package emerging from the congress importantly. but to your point about bankruptcies, i'm talking to people in the hotel industry this is not those who manage the hotels, not the marriotts or the hiltons, the actual owners of the hotels, you could see a wave of bankruptcies there. these things can't operate at 50% occupancy in a profitable way let alone 10%.

even if they were closed, come back at 50%, that won't cut it either there's a lot of questions in terms of that ability and withstanding that. >> you have zoom and webex, they are saying you don't have to travel now and then you have the regular person in this country, they will get a check that's not going for a trip to wynn or las vegas, which, by the way, would begreat if it did, that's crowd gathering i don't think we want to crowd gather it's terrific what they're trying to do help small business in washington, but again, i keep coming back to we do not want to see crowd gathering if you're dr. fauci. if you're the president -- don't mean to pit these two, they are still working together, but if you have an easter deadline, which says you can have

gathering and we keep thinking maybe it's a cold or a flu, david, i keep asking, name me a person who had a cold who had to go on a ventilator i have never seen that you've never that's what we fear. if it's a great -- if it's a gre great -- if it's a beer at a bar or a ventilator, i don't know. we have to start thinking like that there are other places where it seems like we can go out as long as we practice safe things maybe we have goggles, n95s, we'll have some nice gloves we used to clean dishes with. what it comes back to, this is not -- it's safe getting together i don't feel that safety yet i don't think you do either. >> no. listen, i want to make it clear, the public health crisis certainly for the new york area

and other regions in the country is very significant. you heard governor cuomo yesterday of new york talking about the need for 30,000 ventilators. jim, best i've seen, they're not there. there is not that supply we can keep hearing the administration saying certain things about ramping up we will talk to the ceo of medtronic in the next hour about their efforts. that's still months away months before you are able to produce what is going to be needed >> very true i do want to be sure that -- how i phrase what we're doing about the payroll tax. that's a tax deferral. i don't want to make it sound like the rich -- i don't want to say i misspoke, the rich get richer, it will not be the income tax it's not a cut as secretary mnuchin informed me. just a way to get more cash flow to big and small businesses. i don't want to leave the impression that what this is is a break for the rich if i did that, i apologize

the employer payroll tax is deferred, not a cut. i don't want people to think i misspoke i'm so concerned about the worker i don't want the worker to file bankruptcy i don't want the -- the company that employs 10 people, that, to me, is the sweet spot of america. that's who we need to protect. we protect them, then i think this thing comes out whole if we protect the top dogs, they figure out a way not to hire more people. >> your point is a good one. we'll be focused on the way that money is distributed and whether or not it's successfully getting to those very workers you're discussing on "squawk box," as you well know, they had a conversation with former fed chairman ben bernanke, one of the men who led the nation through the financial crisis of 2008 he seemed more sanguine in terms

of what is coming our way. take a listen. >> this is going to be a very sharp, short -- i hope short recession in the next quarter or two. because everything is shutting down, of course. and, you know, the gdp figures are calculated on an annual basis. if activity is 10% lower this quarter than last quarter, you multiply that by 4, you say there's a 40% rate of decline. you could see some scary numbers. he did say scary numbers but also used the words recession, jim. plenty of people you and i speak to use the word depression >> i know. i always hesitateto use that word what comes with depression is the societal -- you know, we had leaders during the depression, they made it seem like perhaps the republic was at stake. that there were moments when if we didn't get to the bread lines and help people, didn't try to

break up the hoovervilles, we thought maybe democracy was in peril. i certainly don't want to -- i'm trying to come up with another term between depression and recession that -- it's a public health issue this is a medical crisis that we don't want to turn into a financial crisis i found ben bernanke to be reassuring, but not in a false way. just in a -- you know, we've been there we kind of have a game plan. it's not necessarily this game plan but i found him -- if there's anyone who can be -- that has a right to be sanguine, it's that man. perhaps there is a way that we will be able to enjoy the fruits of our labor again other than being in our home. the american way -- i found myse myself -- i talked to dave depositi tepper, not just because cam newton was cut -- will football

be cut will we have a season? there's american ways of doing things one of them is we go out, we shop, we go to games i think of that moment when adam silver canceled the nba. i want normalcy like you do. normalcy means we go to a game and we're happy to see each other. david, i just don't -- i don't know if it will go back to that any time soon. that's something that ben bernanke did not address >> no, he did discuss what is a much stronger financial system, of course. not saying it is not going to be leaned on heavily. to your point, was fairly positive at least in terms of all the things that occurred over the last 11 years, particularly those years that followed the financial crisis to bolster many of the big banks and their balance sheets >> david, watch zoom >> watch zoom? what about the airlines? shouldn't i watch those, too you have united up, delta -- all the airlines are up. >> we did get an upgrade of

southwest, which is incredibly well run i was debating the other day with my daughter on whether to come home from spain, try to make a run for it somehow, escape from new york -- escape from spain to escape from new york i'm not sure southwest air down 22% to 41 used to be at 29 you had to be the brave soul that bought it at 29, not the person who takes it out at 21. i'm not a buyer of the airlines. you always need demand and customers. i don't see the customers coming back yet >> yeah. >> we have never seen the moves we've seen over the last week. boeing proves it up 19% this morning, jim >> can we please salute the goldman guy who upgraded it at a moment when it looked like that was fool's gold?

when he did it, i said there's a guy willing to stick his neck in the gill teuillotine in the fre revolution and it worked it is far more critical. i think we're back in the easter versus not easter situation, talking about which drugs, anti-virals versus longer-term at home. but when that call was made, i think people were thinking boeing files for bankruptcy. that's the way that they can get out of the jam they're in. then the money comes secretary mnuchin, i think, there are industries that i absolutely realize are the gem of america david, if we can export airlines again, the 737 is probably, if you asked me what the next act is in this crisis of capitalism, it's getting companies to buy our products and the 737 -- i'm not using the term max anymore

i think that may not be the great name plate the 737 is a sign that things are back >> yeah. boeing off of its lows, that's an understatement. that thing had a $50 billion market value a couple days ago now it's worth 58 billion. >> do you think david calhoun acquitted himself where boeing may be worth throwing a lifeline to >> clearly it seemed to benefit. some people say when he said we don't necessarily need it -- all right, fine, don't take it still not clear to me exactly how or what they're going to need, how it would be apportioned. by the way, same with the airlines, you heard eamon talking about grants taking equity stakes

so much of this is unclear in terms of the actual mechanism for distributing the money >> i always come back to the cruise lines they are non-u.s. paying philippines, bahamas they employ thousands of people. i interviewed all the ceos, they're terrific you keep coming back to what is a cruise ship worth? will we ever have 4,000 people hanging out with each other knowing the filtration of the air is not something you want to breath breathe. >> we are. one day we'll be happening out together >> you and me or on a princess cruise >> no, not on a princess cruise. we're not doing that just you and me in general >> you didn't go anywhere before the crisis, so some people -- >> exactly for me, very little has changed. >> right >> very little has changed >> remember what you said at the beginning of this, david

you said -- >> what did i say? >> i think you said i don't really care for people >> yes, i did mention that i may revise that. give me long enough, i may start to say -- >> given the situation, it verifies your behavior my behaviobehavior, tj maxx is e open for heaven's sake >> i wanted to mention occidental petroleum it's a story you and i would be discussing in a normal time. carl icahn just got three board seats. vicki staying on as ceo. they sort of caved 11 board members now, a bunch leave. 10 of them will be independent icahn has three guys on the board. the question is, who will buy this thing that seems to still be the idea. from what i hear from bankers in the energy industry, no buyers

right now. no way no chance. >> they're a company they won't -- they -- rusty brazill has done the best work in that. they're in the $33, $34 quadrant they can cut their salaries to negative 5 this is not one that does well in this environment. they got a loan, an 8% loan from warren buffett >> it was. it was they cut their dividend to save money, but they still have to pay mr. buffett, who we still have not heard from. silence is deafening >> dairy queen mike worth was on yesterday from chevron. talk about a guy who laughed all the way to the oil well. he passed on that anadarko purchase probably the greatest thing he's

ever done. >> they had it they had the deal and he would not go there in terms of the price that occidental was willing to pay the biggest police take w efgest allowing their own shareholders to vote. the buffett money was specific for allowing them to mitigate the possibility of having a shareholder vote if the shareholders have been able to speak, they wouldn't have done the deal >> was anything done right there? this is the snapple buy. can you come up with a worse one? you had one with at&t, didn't you? dish >> there's a bunch there's a bunch. listen, monsanto, that didn't look good. >> this is a cake taker. this is a cake taker >> nextel sprint is up there >> he left that one line, it's better to be lucky than good >> amen. with that, let's get to bob pisani so we can check in on the broader market good morning, bob.

>> good morning, guys. so we'll see if we can put together two back-to-back days have not done that since early february boeing is the real driver here we are talking about 150, 160 points in the dow. boeing huge move up. all the airlines, we're seeing double digit gains here in some of these airlines today. so the bill is real. the markets are responding to that in terms of sectors, 2% to 4% gains in the most beaten up ones, the energy sectors, industrials, banks, retail these are the sectors that got the most beaten up in the last month here a number of companies are continuing to withdraw guidance. not as much as you would think but we've seen overnight, we saw whirlpool, target withdraw guidance twitter did that yesterday, joining -- keeping a list of the 16, 17, 18 companies mastercard did it, deere, fedex, marriott, darden it seems like a long list, when

you consider the s&p 500, a small number have withdrawn guidance this will change in the next couple of weeks. you'll see a raft of companies come out and either give very conservative down guidance for the second quarter, or they're going to withdraw guidance for the full year altogether that's going to be a big issue and that's one reason the market keeps gyrating even overnight. 1,000 points in the dow overnight, everybody is fairly clueless about how to price the earnings overseas here, modest gains in the stoxx 600, at least a few minutes ago here hang seng over in china, two-day rally that they had here that's significant the biggest one, the nikkei. look at this that's 8%. nikkei up 20% in the last three days that's a huge, huge rally there. that's the big global market that had the biggest move. i want to point out about three weeks ago, i pointed out this was a global takedown, the markets were down across the

board. it's rather remarkable, this is still the case the s&p 500, 28% this is before the open. 28% from 52-week highs europe, 29%. that's the stoxx 600 emerging markets, 29%. japan is 20% a day ago it was also 29%. it had a huge rally in the last 48 hours so you see that remarkable, the entire global market is still pretty much down even here in the united states, if you look at various ways you slice and dice sectors from various ways, like growth is down 25% value is down 30%. that's a difference, but when you talk numbers this high, it's darn close the momentum strategies, buying stuff that's been working, that's down 27%. low volatility stuff that is not supposed to move that much, when it moves, that's down 30%. so you get the point here. even with all these gyrations in the last few weeks, with the bill, with the federal reserve

acting, the overall market is still moving remarkably in tandem the one exception i would make is the russell 2000, which is definitely acting a lot worse than the overall market indicating its the small cap stocks that are still very much under pressure guys, back to you. yeah that has been an underperformer throughout even when things were better bob, thank you let's get to rick and check in with him on the overall tone in the bond market. rick >> good morning, david you know, it's hard to have normalcy, but i'm the market guy. i'm going to try to give you as much on the markets as i can look at a chart of ten-year note yields we've really flattened out think about it friday's close was around 85 monday was 79. yesterday was 85 today we're hovering in the low 80s. it's started to consolidate. that's a good thing. look at a year to date chart of tens this is important. because we've only covered a

fraction from the low at 54 to the right of what we've covered so far year to date. 120 is the extreme on top recently and of course, 54 on the bottom i would suspect that in either direction if you go through, you're going to have some follow through. i personally think higher is better than lower. a year to date of bunds, look at the difference it's covered pretty much on the right side of the v, everything year to date minus 15 on top. minus 86 on the bottom that could confine the rest of the trading for some time. ben ber can can i said something i love go to the board. 1960 to present, 16% just shy of 1981 this is the anomaly. depress rates were trending down this is probably distorted i guess the reason i bring it up at all is because ben is right let's recalibrate all the policies everything is about inflation. and we're wrong. the 80s have come and gone

david, back to you >> yeah. they certainly have, rick. barely remember them at this point. let's get to meg with an update on all things coronavirus related. meg? >> hi, david we're looking at italy today we had seen a couple days of new case numbers there and new daily death numbers in italy declining. and that spurred a lot of hope this might be turning a corner in that country. here we have looking back to the end of february, italy's new case counts and new deaths you saw saturday what looked like could be a peak at about 6500 new cases that day. and 795 deaths however, we did see that start to tick up again yesterday i've been talking with epidemiologists to say can we read anything from the numbers do they tell us anything about the effect of the lockdowns in italy and can we extrapolate that to what we're seeing in new york and the united states

the message from them is it's probably too soon to tell. the university of minnesota doctor telling many he's looking for at least two weeks of the data to even out any changes that we can see in testing and the workload coming from italy they put their lockdowns into effect basically the beginning of march. march 8th is when they started locking down the northern provinces. march 9th the country. they are looking for four week from the lockdowns to start seeing the flattening of the curve. if you look around the world, we're hoping to start to look like the asian countries, south korea, china as managed to flatten the curve. japan has a flat curve we have a great graphic. nick wells made this the horizontal lines is where we want to go the orange is the u.s. the red is italy hoping to move toward a flatter curve. we're not there yet. >> nerms of new york, looking for a few more weeks to see if

things slow down >> thank you, meg. new york is the epicenter. we're hoping things will flatten as soon as possible. thank you, meg jim, i want to turn to you for stop trading one of the names in the focus i know is one that relies on ad sales even though the viewership/usage might be up ad sales trending the other way. >> i think when you look at the trading and facebook, you'll see exactly what i'm most worried about in this market people felt so positive last night when we went home that after facebook reported what is definitely something that requires a number cut, and that has to do with the fact of the decline in advertising, the stock went up as if you know what of course that's in the stock. what do we have to worry about that turned out to be a false step the rel step is when you don't make your numbers your stock goes down. and i think this is what you have to worry about.

because facebook is one of the early companies to talk about how their quarter is doing and nobody is giving them fore beari bearing. numbers down, sell that's a precursor to what we'd better get used to seeing. >> we know when it comes to corporations, any opportunity to get your hands on cash, they're taking and appropriately so. one of those is cutting back on your ad budget it's not necessarily something you need particularly when you know consumer demand is really not going to be there, jim so while we're seeing huge increases in usage numbers, think about twitter, for example, which so many of us are relying on in a way we might not have in the past, twitter is not going to have good numbers nobody on the ad sales front is doing anything >> no. look, you do here, the huge traffic in nonmonetizing part of

facebook, it's going to be more engrained. z and caler is up. it's a secular change. you see a cyclical downturn. you say the companies have it's -- they just waste it >> jim, yeah i mean, it bears watching, of course good old media in terms of always on my radar, but you know a lot of people are streaming. we know a lot of people are watching >> would you let me stay the next half hour >> always. you stay -- >> i only have one tie here. what can i tell you? i swear. >> you only have one tie >> i didn't prepare appropriately. i didn't think i would be sitting here --

>> i'll get you five ties. >> yeah, i know. we're going to take a break. we have mary dilln coming up in the next hour. she's going to stay with us for the first half hour of that hour a lot more on the way after this can we go get some ice cream? alright, we gotta stop here first. ♪ ♪ from smarter atms, to after hours video tellers ♪ ♪ comcast business is connecting thousands of banks to technology

that turns everyday transactions into extraordinary experiences. hi there. how are you? do you have any lollipops in there? (laughing) no, sorry. we're helping all kinds of businesses go beyond customer expectations. how can we help you? through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

good wednesday morning i'm sara eisen with david faber and jim cramer coming to you live from three separate locations. we're getting breaking news top of the hour on aetna >> aetna announcing this morning that it is not just weighting costs when it comes to covid-19 testing but also for treatment saying that it has already worked with hospitals, the member hospitals in washington state and new york which are, of course, big hot spots. no preapproval is needed for anyone who tests positive and needs to be hospitalized and they will waive all cost sharing for that until june 1st. all of the insurers at this point have waives cost sharing

when it comes to testing but aetna, sub ssidiary of cvs is t first to waive the other costs associated with being in the hospital on a ventilator in an icu could top somewhere around $20,000 in markets like new york and washington so that is something that a lot of people have been talking about could be a real problem for patients who are fighting this virus, then having to fight the bills. >> absolutely. very helpful thank you. checking this on the overall market, s&p 500 just turned negative it was higher for most of the session. we're about a half hour into trade. dow gains are slipping nasdaq down almost a percent coming off the best day for the sthp s&p since 2008. for the dow since 1933

typical bear market rally. when you look at what's working, industrials, consumer discretiona discretionary, and health care up what do you read into the action we haven't had two back to back positive days in about a month since this crisis began. >> actually, i think it's somewhat normal to expect some profit-taking. it's also a lot of people who say we have to have a retest that would mean that we can go down substantially from here i just can't stand it when we have that kind of rally yesterday. it's a rally that where the machines come in and make it look like it's a really good day, and no one really is in there. the volumes are very weak. and obviously we don't have the buybacks -- they're being cut back i don't expect anything great. i think there's a shift in leadership i think we'll go back to recession stocks by midday i certainly don't trust the energy sector one bit. the energy sector has distinguished it as being horrendous, and there isn't

anything that justifies buying it until you get the president calling the saudis and saying listen, we're done protecting you. and the president has always been such a low gasoline guy i don't know if he's going to make that call >> absolutely. >> jim, yeah, jim and sara, it's funny. the financials have turned around rather substantially. looking right now i have goldman sachs down 5%. morgan stanley and goldman sachs with 50 billion thr market values >> together they only add up to 100 billion. >> and morgan stanley is similar to a pure service business james cormen turned that place around look, david solman is trying to make goldman more of a etail bank not a lot of deals this is not a deal paradise right now. >> no. no i mean, capital markets activity is limited to investment grade at this point. and there are concerns about that including whether the

rating agencies are going to send a lot of investment grade down to high yield and that's going to dislocate a lot you're not going to see a lot in terms of m&a you may see some restructuring there's concern about net interest margin and what it's going to look like and the basic business during what's going to be or is a recession and perhaps worse. no doubt the earnings power is down but it is still shocking, shocking to look at those numbers. the likes of which we haven't seen a market cap on goldman of $50 billion. i mean, it is amazing. i don't know where it's trading in terms of multiple, a percentage of book it's well below. >> the industry also is just -- let's call it under wraps. i know brian williamson has been talking about some good things it's not like the old days i hope jamie diamond is doing

well, but you look to him and he'd make statement buys and tell you everything is going to be fine. the industry is trying to keep their head down. anything you see a bailout boeing is getting liquidity, but any time you hear the word bailout or slush fund, you think here go the bankers making money. they have to keep their head down it's almost as if that industry is such a pariah, you almost think someone will have to surface and say we're going to do everything we can to help the country. i've not heard that from them. maybe charlie sharp. that would be something saying wells is open for business, something like that? >> it would be it has been, again, the same way we talked about sort of not hearing from warren buffett which you might expect to hear in downturns like this it's been notable as well that a lot of the leaders of the financial institutions have not

been outspoken morgan stanley has the deal to acquire -- >> the i remember when goldman was thinking about buying schwab, another 12 billion, schwab is thinking about buying goldman. wouldn't that be something >> yeah. i know jim, while we're on the subject, we have a guest who joins us sometimes as well, ceo of stefolt to talk about the financials let's start with your business and what you're seeing from your business and your clients in terms of their sentiment >> well, first of all, our business on the transaction side is franklyquite robust as you might imagine. i've been also quite impressed and proud of my staff that has been able to do this with 70% to

80% of the people working remotely which, by the way, to jim's point earlier, that is a big thing that people need to think about. businesses are learning about working in the cloud, and there's going to be some winners out of this from how businesses operate going forward. but you know, business has been good, and let's see what happens in the second quarter. our investment banking business clearly is being impacted by this >> yeah. i wouldn't expect as we know there's not going to be too much, but what are you seeing in terms of clients you know what is sort of the overriding -- are they sticking with it? are they all running to cash and then we've had some dislocations too in things like money markets and corporate bond fundsthat can be confidence killing. >> you know, they -- yes, but this -- this decline in the market happened so fast and so suddenly and was so precipitous

that many clients are sitting there and looking at it as they should and saying is it now down 20 % from here or is the more likely up side and so i think clients have been surprisingly calm, maybe they have to be i'm supposedly an expert and i watched my own portfolio drop saying why didn't i sell but i know better and our clients know better. i think that's been surprisingly calm in terms of money markets and all that, look, the fed has done a remarkable job of making sure there's liquidity in the system. when you look at what the fed has done, you can go back to don't fight the fed. >> look, i'm so glad you pointed that out i actually think that everyone has acted responsibly in government i thought the bipartisan bill out of congress, i mean, come on that's not so bad. and the fed has been on the case the one thing that hasn't been

on the case is covid-19. this is a relentless enemy that's unseen. you can't tell whether you've got it or not. we need to test more if we get it it's not a common cold or flu. it's ventilator. we don't know if we have enough of these don't we have to solve some of the health care issues before we feel like doing anything other than ordering on amazon? >> well, you know, it is a health care crisis of course we have to solve that issue. you know, i want to make something. you should ask your economist about -- that comes on after me. everyone is talking about the decline in gdp we passed a 2 trillion bill. to me it looks like 1 trillion is direct payments i don't know how that flows through to gdp when i went to school government spending counted to gdp. there is a significant stimulus package that's in place here if gdp is down 25%, that's a

trillion five and we're adding a trillion in direct payments. let's not lose sight of that impact i think the real question everyone dances around is at what point and what data will be necessary for the government to conclude that the so-called quarantine can come to an end? because i don't think there's anyone that believes that we will lockdown this economy until covid-19 is eradicated that's not the case. the question will be what is the data that will allow the cost of fighting this disease which is shutting down the economy, when can that begin to abate? and i wish i knew the answer to that because i would have a much better viewpoint of market performance from here if i had an idea of what that date was. >> yeah. ron, it's a key question many of us are asking and as you point out, it's hard to know at this

point. so many things that we've never dealt with given both the health crisis and an economic crisis occurring at the same time always appreciate you joining us >> but -- okay thank you. >> you're welcome. >> we'll get through it. that's something i say every night to my wife don't worry. we've get through it i mean, i'm not minimizing it. that's kind of where we are. i didn't think it would occur that my wife would leave and i stay and one day we'll be done with this. we will, david >> of course we will there's no doubt about that. again, we don't know exactly when we don't know when the real return to normalcy will be we can only hope it's as soon as possible and then the ramp is fairly steep in terms of getting back >> no false hope >> we don't want drugs that we thought were going to work don't work we don't know where the tests are. we have to find out.

but i don't want to be in a situation where we're going back and you and i are going to be sitting with each other. right now it doesn't seem like it's going to happen any time soon >> you're getting depressing here >> i'm sorry i'm bummed. >> keep your focus on the anti-virals. >> madrid. >> this is hard on everybody and thankfully we don't have anybody who is sick. let's be thankful for that there are so many people enduring real hardship and our heart goes out to all of them. let's move on in the show. kourtney reagan is with us with a special guest. >> thank you, david. that's right i'd like to bring in mary dillon, the ceo of ulta. she's also the chair of one of these key retail lobby groups in a lot of communication with washington mary, good morning thank you for with us. i guess the first question is the intersection of retail in washington we know we're waiting on some of

the details from the stimulus package, but your group and the national retail federation had reached out to washington worried about the state of the industry and frankly, the workers. if one in four americans are employed by retail, do you think this package is doing enough >> good morning. and thank you so much for having me on the show today yes, i'm thrilled to see that things are progressing in washington with the bill just passing. there's still a lot to unpack. so it's really a little early to say. it has -- we think many of the right priorities but really what i wanted to mention today is the chairperson in the retail industry association, i want people to understand how important it is to make sure we think about retail workers through this. the number one priority for everybody in business and retail that i have spoken to is about stopping the spread of the virus and keeping people safe. but as you mentioned, 42 million people work in retail across our

country and rely on retail for thundershower jobs and livelihood, and we rely on retail to purchase goods it's a great accessible industry for so many americans. and i know we had brian on earlier this morning, a fantastic ceo. i'm thrilled that many of the companies that can continue to sell things that we need for daily life like groceries and drugs and takeout foods and other basics, they're running. those companies and workers deserve a lot of our thanks. they do. but having said that, the huge segment of stores are closed and it's about half of retail. it's millions of people that are either furloughed or out of work or laid off. on the one hand we did this really to protect the safety and health of guests in our country at large, and that includes specialty retailers, many department stores, home decor furniture, beauty. a lot of times people think it's great that e-commerce is up and running. but 85% of retail still happens in brook and mortar. the point is no company in any

industry can sustain without revenue. that's obvious so i love the collaboration i see happening across industries. everybody is taking steps to make sure we're keeping people safe and getting people in the economy back to work when the time is right to do so that's going to be critical. and no two retailers are in the same position, but we as an industry absolutely need to look at options from government assistance to capital accessibility to bridged loans we hear a lot about airlines and hospitality. retailers as well. >> absolutely. and i know your company is trying to compensate workers while stores are closed as are many retailers, but i imagine that can only realistically go on for so long, and we have no idea how long this virus is going to be with us in the current state that it is what do you think you do after that what would be your message to a retail employee right now that may be worried about their job and frankly their livelihood

>> i would say first of all, i'm thrilled to see that there are sectors that are hiring. right? in retail. that's a good thing for retail workers. i'll step back at ulta beauty. i'm proud of our actions we've been closely monitoring the situation and acting quickly and responsibly. we made a decision a week ago to close our stores until at least march 31st that was not an easy decision to make but we did announce we continue to pay our store and salon associates as well as their p benefits i'm also pleased that ulta.com remains open i know every ceo, i believe this is a universal sentiment, and we want to get back to where they were on march 1st. we want our associates and customers back we want to continue to thrive. everybody is going to be in a different place on this. while we have a strong financial clean balance sheet and we think we're doing a great job of

managing through this, everybody is going to have to look at what can we do to help families and help folks who need support? and that's why i'm thrilled in the bill, things like unemployment insurance, cash directly to families as soon as it's safe to do so, and where it's safe, putting people -- when it's safe to do so, going back to work many people can't wait to go back to their jobs when the time is right >> always great when you call in i was getting down there i'm worried about my kids, including my daughter who shops at ulta. when she sees the 21 days of beauty, she goes to the deal you have an unbelievable loyalty program. can you tell us how it's holding up and how are the 21 days of beauty 30% off a lot of favorites >> i love it your daughter is a great guest i would just step back and say that people are -- their lives changed overnight. this is a time where while folks

are working at home, certain routines, self-care and beauty and wellness have been intersecting for some period of time people are engaged we have 34 million people in the loyalty program and a strong digital connection with our guest as well as you said things like 11 days of beauty it's a hallmark event for us we're still doing that because our guests are excited about it. excited about the fields but we're also seeing folks getting involved in things lik essentials like shampoo and conditioner. but also self-care masks, skin care, things that maybe originals that you have more time to do while you're at home. many of us are on video conferences all the time we want to look good in that environment. we think we can help to bring normalcy to a time that is very difficult for all. >> there are also good operators with great balance sheets. while some of the companies may not be able to compete with you.

let's talk about what it's like to have a great balance sheet when others are struggling >> you know, listen, everybody is in a different place. i feel good about where we are we have a clean balance sheet. we're well capitalized we've taken precautionary measures to increase our financial flexibility to operate in what you know is a pretty uncertain environment. i got to tell you i know that for us and for my company, the strength of our culture, our associates are part of everything we do our store associates know how much we care and we're looking out for them i feel like we're going to come back strong because our culture is strong. but i also just want to say corrodes all of retail, everybody is in a different place. we need companies to survive and people to go back to work. counting on making sure the bill that passes sinks through and gives us options in terms of liquidity and capital for companies at large it's going to be very important. >> and mary, when everyone is

able to go back to work and stores are able to reopen safely, what's your message to both your associates and the customers that come into the store about the safety of things like open makeup right there when we're being very careful about what we touch and being told not to touch our face right now. but that's what you need to do in an ulta store to have a full experience >> that's a great question i would say right now if people went to the ulta beauty app, we have an unbelievable augmented reality capability you can virtually try on all sorts of products. lipstick colors, skin care rituals and even foundation matching so there's so many things you can do from digital capabilities we have. that's what i'm recommending to people certainly the joy and the fun and the love of coming into ulta and having experiences where you're trying things or engaging with guests is core of what we do

we've always had high stashndars of sanitation. what we've always done is to tell guests when we're open, you want to try something, ask an associate. they'll take the item and sanitize it in front of you. try it on your hand and not your face we feel like that's something that we know how to do well. but also there's many ways to engage with beauty, and services we excited to bring back as well as trying things online. >> mary, specific to how you operate the company right now, and you and jim mentioned it a bit. you drew down 800 million under an existing revolver cash on hand anything else in terms of pulling back on capital expenditures and the like and how long you sort of see that austerity, so to speak, extending for? >> yep well, i guess none of us know how long it will take for us to be back fully running, but i'm hospital mystic -- optimistic

about that we're rethinking all our priorities to be smart about how do we preserve cash now to make sure we take care of our business and our business needs that are right in front of us as well as be in a position to be ready to be up and running strong when we open up our stores again think about ourselves in the e-commerce only business, focusing on getting the right messages to the guest. thinking about what are things we can put on the longer term burner we're going to have to wait on. we're sorting through that and have a good handle like everybody, i'm with my team every day. this is a 24/7 operation right now that everybody is running. we're sorting through all those options. and scenarios, i guess scenario planning to both be nimble and also cautious about where we stand >> the consumer was such a backbone of this economy for so long, and remained really one of the strongest points mary, do you believe that consumer reluctance to spend once this is all over could actually be what takes us the

other way or do you have faith the consumer will come back as strong as it was precrisis >> well, you know, i don't know. i guess everybody will have a different guess on this. i would just say as we entered into this year, we felt very good about the strength of the consumer as we saw our business and other businesses, the economy was strong our business had strong momentum, and as we talked about last quarter, and so we feel -- i personally feel that yes, this is a shock to the system, and yet it wasn't really -- it's consumer sentiment about how they felt about spending up until this point i think we've had different ways of living in some ways, but we feel especially in the segment like beauty and for ulta, that going back to normal and enjoying things in your life that you enjoyed before is going to be high on the list of priorities for people. we hope so >> mary, we certainly hope so as well for you and appreciate you joining us. mary dillon, ceo of ulta beauty.

our thanks to kourtney reagan for bringing her to us jim, i want to get back to you as well. i think your time is fast approaching as well. what is coming up on mad tonight? >> i'm feeling better. i was a little down. real life. even time -- you're supposed on on tv, we're supposed to be -- it gets involved sometimes i have western digital there's a tech company on the firing line. paychecks, how is small business really doing and david, i got marvin ellison from lowes who is a leader an unbelievable company. let's see how they're doing. community-based and a person i regard as a person i want to follow if he tells me that don't get mad at home depot, but if he tells me a certain way to live my life, i'm doing it. i'll be jimmy chill tomorrow i will be. >> you be who you need to be don't worry. it's all right

>> all right i hope she calls i know everybody is, of course, when you don't have your family members around you, it can be difficult. very difficult jim, thank you >> yeah. we're going to head to break. we're going to have the ceo of medtronic joining us as well more "squawk on the street" right after this ♪ in nearly 100 years serving the military community, we've seen you go through tough times and every time, you've shown us, you're much tougher your heart, courage and commitment has always inspired us and now it's no different so, we're here with financial strength, stability and experience you can depend on and the online tools you need because you have always set the highest standard

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welcome back massive stimulus package passed by the house of representatives and the senate, of course. let's get to eamon the details are what matters here and we're still working through them, aren't we? >> yeah. it hasn't been publicly released yet. we're getting new details from senator marco rubio's office on the small business provision this is so important this could ultimately mean free money in effect from the government for many small businesses across the country. here's what we know is in the bill as of right now according to rubio this is $350 billion that's been authorized here for loans to small businesses with 500 or fewer employees. this is an 8-week cash flow i

assistance the condition is they must retain and rehire workers. now, the loan forgiveness piece is the key if they do that, if they do retain and rehire the workers, then ultimately the federal government is going to forgive the loans in their entirety as long as the proceeds are used for payroll, insurance, mortgage payments and utilities there's a bunch of other provisions that's the key up to $350 billion authorized to small businesses as long as they keep those workers on the payroll, then the loans will be forgiven after about eight weeks. an important one for all the small businesses watching and concerned about what happens to them this message is reach out to the sba as quick as you can and figure out how it applies to your business. >> you know, eamon, are the agencies that are going to be tasked with actually distributing this money in a position to do so, do they have

enough people? are they able to actually do the work that is going to be give ten to them? >> that's going to be a struggle everybody is going to be stretching this is tbiggest aid package. it's going to require a lot of work by all the people who are pushed to the max. there is new money for additional hiring in this bill for some of the agencies that are going to be dealing with this and so they're going to have to work that all through on their own side, and, of course, for the small businesses that are dealing with this, figuring out who to go to, how to get the money, how it's coming into your accounts and how you can rehire the employees that may have been laid off already all of that is just going to be a real management challenge here in the coming days and weeks it's what the country has to deal with right now. >> yeah. it is, indeed. eamon, thank you for all our reporting. i'm going to be hearing from you

throughout the day with the s&p down about a quarter of one percent, let's turn to sue with an update on the virus as well back at hq. s sue. >> good morning. confirmed cases have jumped up 438,000. even as experts in many countries say there is still a shortage of testing supplies the global death toll has topped 19,600 spain is reporting a record 738 deaths since yesterday raising the toll there above 3400 spain has now suffered more coronavirus deaths than china. among the new cases is britain's prince charles the 71-year-old shown here avoiding handshakes at an event two weeks ago is showing mild symptoms of the virus. he has self-quarantined at a royal estate in scotland his wife has tested negative meantime in india, police are trying to enforce that country's. in one northern town a police

officer scolded people were defying the curfew and told them to apologize and do squats as punishment so far india has 606 cases and 10 deaths from the coronavirus and daily life is slowly returning to normal in china restaurants are beginning to open in beijing after being shut for nearly two months. super markets in wuhan also starting to reopen, but the tli lines are long because shoppers are practicing social distancing you can get more on the coronavirus. our coverage is at cnbc.com. david, back to you >> okay. thank you very much. we're going to take a quick break. on the other side, we'll speak to the ceo of medtronics certainly ventilators a very important story here in terms of their production and their eeility to get to those in nd. we're back right after this.

welcome back i'm sara eisen we're coming to you live from separate locations as we continue to practice safe social distancing about an hour into the trading session, stocks have lost the momentum that we got certainly yesterday. biggest rally since 2008 for the s&p 500. and for the dow since 1933 dow remains higher by 152 points s&p and dow are lower. just fwrax fractionally. congress finally strikes a deal for $2 trillion to help taxpayers and businesses hit by the economic and health crisis david? >> thank you, sara on that note, of course, want to bring in omar ishrak, the ceo of medtronic. it's one of the leading manufacturers of ventilators in the world, and has increased the capacity to try to produce them as quickly as possible glad to have you with us

yesterday the governor of new york said the state is in need of about 30,000 ventilators. is there any hope based on what you know in terms of what's in the marketplace, that that kind of demand can be met in the near tu term >> first, we all acknowledge this is an unprecedented human challenge and it needs an unprecedented response medtronic is mobilizing and doing everything we can. to your specific point, there's different grades of ventilators. there's acute ones we need for critical care needs and others that are used earlier in the progression of the disease and overall 30,000 is going to be a challenge it's a matter of when. over time we can probably get there, but i think on that point, intelligent allocation of the devices not only between geographies but also within the hospital and the right patient gets the right type of ventilator is going to be

extremely important. >> yeah. so what can medtronic do i know you have significantly tried to increase your ability to produce ventilators but the numbers pale in comparison to the needs still, don't they >> yes, they do. and like i think we mentioned we've increased our capacity significantly. we already doubled it, and on the way to doubling it again and so our capacity is going up. we do make these critical care ventilators in high demand we are also opening up with other partners who have come forward, and tesla is one that i think people have heard about where one of our ventilators will be made by them and they're fast on track to try to make that as well in addition to that, we're going to open source one of our lower end ventilators in less acute situations for others to make as quickly as they can. this product is more ja nagenern

form that's what we're doing. >> i think you mentioned the partnership with tesla i was curious about that elon musk did tweet about his conversation with you and your team wondering if you could share that and whether musk had any visionary ideas about manufacturing that could help speed up the process >> they have capabilities there, and you know, i think without going into too much detail, one of the products that we make that is not our prime product right now is one that is perfectly suitable at least in some of these instances, they will make, and they're doing that in parallel while we're focusing on the product that we -- that is our largest volume product, the pb-980 there's another product which

tesla is looking at, and we will do everything we can to help them and power up their production and we're looking at other partners to who are coming in. >> you mentioned there are different grades of ventilators. what's the need for the lowest versus the highest grade what are your projections for the different types across the country? >> well, you know, what's going to happen is you have to use these intelligently. when the patients first come into the hospital with severe conditions, actually, you can use a lower grade ventilator as the condition worsens, some of them recover. and as the condition worsens, you need the higher grade ventilators. and so you need fewer high grade ventilators than the lower ones, but the higher grade cover all situations the way in which the patients are triaged is a known methodology clinicians use depending on the amount of air that's needed to be pumped into

the body there are clear metrics used to triage the patients. in general, you need more of the less acute ones and fewer of the critical care ones but obviously with the caveat that the critical care ones are the ones that are most needed when patients are in very severe condition. >> do you have any idea what the number of ventilators available in the world is right now and what the conceivable need is going to be over the next few months >> well, i'll give you the u.s. numbers. there are 60,000 ventilators in the u.s. if you translate that across the world, you know, rough numbers probably 100,000 to 150,000 ventilators around the world when you look at that, then the need is going to be extreme in a certain geography at a certain time the need for proper allegation

and movement when this is over is extremely important especially we have to be realistic at how many we can make at any one given time the proper allegation within a country and between countries is extremely important and movement of them once the crisis peaked is also extremely important. but that's the kind of range we're talking about. i mean, maybe 200,000, but that's the range we're talking about today, and we've heard needs in just one state to be in the tens of thousands. and so we have to really mobilize ourselves to get this thing going, and i can tell you that medtronic is doing everything we possibly can we're helping others, and there's a lot of effort going on across the industry to try to meet this demand the allegation process is going to be critical here. >> so how do you decide that, omar which states, which countries get the ventilators that are coming off of the machines, the

lines you're making? >> so right now every week we go through an acuity analysis of where the greatest need is depending on how many patients have been diagnosed and what state they're in we pry to prioritize it that way. we're also sort of proposing that the -- that in the united states there's a centralized body through fema who can do the allocation and then they can move those ventilators around that will be a more efficient process than us trying to do it and eventually maybe in other countries around the world, eu and others a similar process can be put in place. in the united states, fema i think is already making moves to do that. that will be helpful and the industry is behind them in trying to achieve that >> can multiple people use the ventilators at one time, and if we are faced with a surge in equipment, is there a way to keep it in a strategic reserve for the future once we don't need that many going forward >> you certainly keep it in the

rur reserve for the future these ventilators can last a long time. that's not an issue at all now, again, one -- can more than one person use a ventilator? that's not recommended that reduces the amount of available pressure, but i also says that two people require the settings in the machine to be exactly the same that's not going to be a common set of phenomenon. and so that is not recommended by our clinical people i mean, in an emergency if there's nothing else available, people have to make choices but that's not a recommended practice by the clinical community. >> what about the defense production act is the president using this for these critical supplies? should he be using this more >> i think look, these are global manufacturers we make ours in ireland. they're global suppliers

i think this is more a matter of allocation at the central level. that's what's important. i think for this purpose, we've got to make sure this flow of material across the world, and anything that detracts that can create a problem what is really important and i keep emphasizing is the intelligent allocation fema is taking the lead in that, and we support that, and the quicker that gets in place, it's never going to be completely perfect, but they can do a pretty good job by using their clinical support as well and move these things around and optimize what we have while the manufacturers try to ramp up production as fast as we can from as many sources as we possibly can that's the strategy we're following. >> and understanding that, the efforts you're making and manufacturers around the world nonetheless, i don't know if he's begun his daily press conference yet, but my guess the governor of new york is going to be begging for ventilators that don't seem to be there and may not be there

isn't that right, omar, until perhaps june i mean, that is what new york and other states that are facing this kind of crisis are really dealing with, aisn't it >> that's true to be realistic, getting 30,000 ventilators overnight into new york is not going to be that simple, but at the same time, we'll try to get as many as possible, and triaging the patients to the appropriate ventilator and moving the ventilators around is really the only option we have. and so we should focus on that follow the certain guidelines. work with the clinicians to do that we're fully prepared to put in training resources other support resources through our employees as we see fit. the triaging of patients and right ventilator at the right time is important. and whatever support we can provide that in area, we will do being realistic through looking at the numbers, getting to that

kind of number immediately is going to be a real challenge the triaging is extremely important. >> of course omar, we appreciate you taking time with us, and certainly look very carefully and hopefully at your efforts to get as many ventilators out there as possible thank you for joining us omar ishrak, the ceo of medtronic. >> thank you that was a great get that was interesting stuff i encourage everyone to listen to the whole thing if you didn't catch it don't miss a cnbc town hall tonight featuring special guests gary cohn, mark cuban, adena friedman this is a big event. send in your questions usin using #cnbctapforward. we're back after this short break. stay with us on cnbc

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the future of the hotel industry is uncertain. one trade lays out which are best equipped to weather the crisis more "squawk on the street" coming up.

welcome back our guest runs a number of hospitals in new jersey and is seeking help as supplies run short, items like gloves, masks, face shields and eye protectors some of the things that they're looking to repleni replenish. he joins us now. give us more color, brian, as to what you guys are looking at in new jersey hospitals and how severe the shortages are getting of critical supplies >> sure. thank you, sarah, it's nice to have you focussed on this. so, you know, here in new jersey, we are in the middle of this this morning, at our preparedness meeting, we have about 300 patients in our

hospitals throughout the region who are either covid positive or we are awaiting tests. and as i said to you guys a couple weeks ago on one of your sister shows, things are still the same, we need access to quick testing and results reporting. we need protective equipment to keep our team members safe and we need ventilators moving forward. those are the things we're focussed on, and there's just a lot of activity. all that being said, our teams are there. they're doing an amazing job not just in our hospitals, but on the telephones and telehealth we're there for our communities. but our cases are growing over the last two days by about 25% each day and that's a very scary number >>, you know, we read so many dispatches on social media, twitter and facebook from emergency room doctors and all

sorts of doctors on the front lines of this, and it's disheartening at times what do you do to keep the morale, the health care workers coming to work and help them feel safe during this unprecedented crisis >> health care workers are the most amazing human beings in the world. every day they get up and do incredible things. and this is really not different than that. and we're used to taking care of sick people and used to taking care of people that are this sick with knpneumonias and other things we're not used to having to worry about the supplies we're getting to make sure our team members are protected. as i look at our situation right now, we are putting our team members' safety, first and foremost in everything we do, but it's getting harder every day as our activity levels are

increasing i think that's what our team members are most concerned about. >> it's alarming as i understand it you're also the chair of the american hospital association so i wanted to ask you about the condition of hospitals, broadly speaking here, i'm talking financially, if people are putting off elective surgeries, that's a major profit center, they're dealing with a once in a lifetime crisis and scrambling to get resources in place for that are we going to have hospitals on the brink -- i don't want to use the bankruptcy term -- but needing real relief and sit in the stimulus bill? >> we are going to need relief as you characterized, we have decanted a lot of the services from our organizations over the last couple of weeks to try to create the capacity that we need for the emerging numbers that we're seeing that has impacted revenue in a dramatic way, plus we added a lot of expense associated with this on average each patient who is

under observation or in our hospitals goes through about 20 sets of ppe per day, per patient. and when you combine those factors, that really does put hospitals in a significant -- a difficult position financially the bill that is before the senate right now has over $100 billion of aid to hospitals, and we are stressing to all our elected officials, vote on it, get it done. we want the president to sign it and we need to get those moneys flowing. >> i'd love to get your take on ventilators. we just had a conversation with the ceo of medtronic one of the biggest manufacturers of ventilators. he admitted, basically, despite their best efforts it's going to be a while until the hospitals like the ones you run, can have the ventilators they need.

are you concerned about your ability to actually secure them if you need them >> every day as part of our emergency preparedness process we get a report on the use of ventilators. and we are using a lot of them right now. almost over half of our stock pile ventilators are today in use. when i go back to the numbers i mentioned earlier about the increasing levels of activity, it becomes a concern because about 25 to 30% of the patients that end up hospitalized end up in our icus and a significant portion of them are on ventilators. it is an absolutely critical item that's why we really encourage the federal government to release the stock piles that they have. we're asking ambulatory surgery centers and other health care facilities that do anesthesia as part of their service to bring those to our hospitals and health systems and we're going to have to really look at this carefully

throughout the country as this disease progresses, because it is pocketed in certain regions and there are going to have to be efforts at the federal level to make sure that as one area may not have as many cases, the other areas that do are able to get those resources. and then open up what's in the military you know, the military, whether in the guard or active military, the military has a lot of these technologies and this is a time we're going to have to figure out a way to distribute those. >> brian, thank you for joining us keep us posted. >> thank you for helping us. we really appreciate it. >> we commend the work that all of your health care workers are doing. from atlantic health we're going to take a quick commercial break as stocks sort of rebound here. we'll be right back. play lord of the rings. play my "straight outta the shire" playlist. i want to see the king. find lebron.

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good wednesday morning i am jon fort. we're all coming to you live from separate locations as we at cnbc continue practicing social

distancing the dow up led by boeing and other major indexes treading water. let's get to mike for what he's watching mike >> jon, right now watching a stock market that is trying to digest yesterday's big gain and also interpret the mixed messages that come with such a gain like that, 9 1/2% up in the s&p 500. one it was an assertive statement the market got too oversold, got reaction and reacted to the upside. if you look at the chart it needs to prove it's more than a one day wonder by getting around 2,500 level for the s&p 500. that would get it above where we closed march 12th, the single most disorderly day intense day of selling and people say this could carry higher for 6% and still be merely oversold. so a lot of mixed messages about how bottoms are formed, ho