was developed. how can we bring it to a level that we can scale up, not compromise at all regarding safety and quality but do it in the right way. so all those factors then the partnership with the united states and i want to thank the government, barta, the work they've been doing, hhs, fda, they work closely with us if you do an interim analysis, statistically how can we accelerate that? making sure we're getting all the information that we need, but also recognize frankly the situation that we're in around the world. >> alex, we want to thank you for joining us this morning. we want to wish you well your success will be the world's success, we appreciate you downing us this morning. >> just thank you. look, biology started this, biology and pharmacology will be a big part of winning this in the end, and we are absolutely committed to making that happen.

thank you, guys. >> okay. alex gorsky from j & j, appreciate it we'll be back tomorrow cnbc's special coverage continues right now. >> good monday morning welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber. coming to you live from separate locations even on set as we practice social distancing futures are stable to start the week as the president extends those social distancing guidelines to april 30th j & j, as you just heard, announcing a lead candidate for a covid-19 vaccine >> a lot of people were astonished that the futures, just at the moment when the president said, look, we have to extend things. take away that april 12th deadline, it will go all april at the very moment we saw the futures start reversing.

i think this is a day, don't know how much more, a day where science trumps the pain and the disaster frankly that is covid there have been many, many days we've come in and science has been playing catch up game today it sounds like science is on target. listening to alex gorsky, i've known alex for a long time, there was nothing in his voice that was tentative it was all full speed ahead. we also know there will be a lot of mayhem between now and when that happens i think there's a sense that this thing is here to stay the idea that everybody can be back to normal is fanciful when you start hearing about vaccines, you start knowing about the companies involved, you start thinking one day maybe physical distancing, social distancing, whatever, could become something of the past so i don't know, we have david back here. he's certainly physical and socially distanced from me i do think that this is a day where you say, if i'm short, i'm

betting against science, not betting against the lackadaisical attitude of many people in the country. >> you're also dealing with a situation none of us have ever actually seen before and when it comes to the market, certainly the sense is that nobody knows anything at this point. we're all trying to understand how quickly the virus will spread, and/or how quickly a vaccine will be available or more importantly in the near-term how quickly anti-virals may be available that would certainly slow or mitigate the effects of the virus and therefore really add a significant element to our treatment of it. or even the antibody tests that would give people the sense of or let them know whether they have it or not unchartered territory continues. nobody really has a great sense for any of those things i mentioned.

there's a positive response this morning despite what was not great news over the weekend. >> i'm so glad you mentioned the anti-virals. there's a lot of lore going around, a lot of urban legends on what works and doesn't t the hydroxychloroquine one thing that intercepted the notion of where we are is the president's conviction that certain things are working we certainly want them who wishes things weren't as perfect as the president says they are then he says i never said it was perfect. you understand the notion of wanting to be on wartime footing, wanting to have many anti-virals working versus the notion of seeing pictures on the beach and the notion of crowd distancing being something that works in some places and other people seem to ignore it then the pictures out of new

york which make you look like pictures out of wuhan. then the pictures out of wuhan are what you want for new york we're on wartime footing, to criticize the president during wartime is a disedicious. dr. fauci saidant to be optimistic that's what we have to offer viewers. >> you were clearly on twitter annoyed by some of the crowds you saw on some of the florida beaches. jim, david is exactly right. if this medical curve goes in tranches and vaccines are the final tranche, what's more important near-term? is it gilead saying we expect remdesivir results in weeks? is it abbott's test that can be done small and portable in the hospital what is important to watch in the near-term? >> we do have miles white

tonight on "mad money" to talk about abbott i felt over and over and over again it's testing, testing, testing. the way you beat this is to have as many tests going on what you want to do, you want to have a plan for the country to come back. but the country can only come back if we know who's healthy and who's not. there's a perception that everybody is awaiting getting this there is also just a terrible series of -- just as there is too much hope being given to many anti-virals, there's way too much of the -- of what i would regard as we're all going to get it. we'll all put our hands to our face we'll all be connected to it there's no hope to it. i find both are just really, really, i'd say, ill-advised in terms of what we're trying to do for the people david, i think that you know that the impact on the economy is far worse than what we're making it out to be. there's too many team who can't pay rent too many mortgages out there

we've got a lot of different products that are predicated on the idea that it is sack croissakr sacrosanct that you pay rent there are real issues being confronting us in the next few months that would make it so that the recession is like the depression if we're fighting over the number of ventilators, the spare number of ventilators that are somewhere in a warehouse somewhere, we're missing the larger point the larger point is will society function in the time when no one seems to have to pay anything? >> you're absolutely right, jim. those are the conversations you've been having, that i've been having as well over the course of the weekend, and certainly during the workday, so to speak that we have these days the concern amongst people who run businesses is how they're going to pay the rent and, in fact, many are choosing not to

it is also turning to restructuring. you talk to people in private equity, for example, where there are obviously a portfolio of companies that oftentimes sort of is the width and breadth of the u.s. economy, you get a sense that there's a lot of problem areas, those that are not right now are expected to be that's what's going on everybody is trying to understand how bad is it going to be? for how long what will my cash flows look like what do i need to do in terms of cutting back my spending to be able to survive. that's not even the small businesses, which you know are just at this point getting crushed around the country given most of them, many of them are not open >> the base of the country, the 85% that is small and medium-sized business for the most part is closed. what does that mean for stocks you come in -- i think we all talk to a lot of people whom we

regard as being thorough about stocks there's a disconnect between what stocks are doing and what people expect the economy to do. stocks have long since divorced themselves from the actual economy, only because they're big internationstional companies i'm going through the technology stocks, do i care what they're building here? they tend not to be here they're in china when i look at the ventilator business, the gown business, we've long since outsourced these. these are not american businesses we had 900,000 seamstresses in the country in 1990, now we have zero can we make them here? yes. for the most part we're a service economy. the service economy for lack of a better term is just shut down.

>> jim, it does bring us to the week, we have ahead of us. we will get more data which is likely to be bad we'll get the end of quarter flows. we have competing calls tactically from the likes of goldman which says don't trust last week's rally, versus morgan stanley which says forced liquidation is behind us, and we stick with the view that the worst is behind us if you have a 6 to 12-month horizon? where is your head >> great question. i look at the companies that are involved -- let's take social media. social media is part of f.a.n.g. it's clear that engagement is way up that's great it's also very clear that advertising is way down. that's bad we have a lot of things that are really like that the fueling of the economy, whether for entertainment or online, for autos, they require demand. >> when you're trying to put food on the table or buy a car

you are trying to figure out whether you have a job or whether you're going to be able to buy at ross stores. in the interim you have to figure out if you're paying rent or do you skip rent and hope nobody catches you i think we're at a moment where it's a free-for-all. in a free for all, it's a tough environment to take a big swing at general motors. >> yeah. does remind me other upgrades to watch as well, which we'll get to including ulta, procter and others when we come back, the president and ceo of cigna, david cordani, will join us this monday morning. yes. it's the first word of any new discovery.

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welcome back to "squawk on the street." let's get over to bertha coombs who joins us with a special guest, he's cigna's ceo, david cordani. >> thank you very much cigna was the first insurer to move to say it was going to cover all of the costs on covid testing, now it's joined with humana to say it's also going to be covering first dollar costs for all of the treatments for coronavirus patients, not just hospitalizations, but also

future medications, future vaccines, and they'll do that both in network and out of network. david cordani joins me now to talk about that decision david, how did you come to this decision and what were some of the considerations that you took in >> good morning. as you know, we're a global health service company, in a time of crisis, which is what we confront right now, we're telling ourselves to step forward and help our customers help our patients and provide them peace of mind, appreciate your reference to the testing. we also leaned in with expanded telemed resources, 90-day delivery of medication, in our announcement this morning we acknowledge we're redeploying hundreds of doctors and nurses to support outside third party telemed choices. we're stepping in to help customers, and in this case as we step back and see individuals fighting the health challenge, we wanted to take the financial

burden off their docket. it's a simple condition, complex, but it is putting the customer and patient front and center and trying to provide them peace of mind >> it's a complex decision, s&p global analysts estimated in a severe pandemic that the medical costs for insurers could be near 1$100 billion as you take on this responsibility and some of your peers likely will follow, how are you going to be able to handle that? >> again, we acknowledge we're in unprecedented times let's step back and understand what we're saying here an individual has an out of pocket financial responsibility tied to insurance, whether it's commercial insurance, individual exchange insurance, medicare advantage, medicaid, we're saying we're taking that individual responsibility on

ourselves. backing that is a large responsibility in regards to the government with medicare or medicaid or the corporate employer which remains so we're taking the portion for a covid patient's treatment and we're taking that financial obligation on. that's a large diversified financial service company and health service company we we've we're well positioned to do so we'll track this over the next several months as we serve our customers and patients stepping back we think it's the right thing to do. individuals are in hospital situations dealing with treatment, we wanted to take this burden off their lap and off their faap and provide them the peace of mind they deserve >> david, thank you so much for what you're doing. >> jim, good to hear your voice. >> thanks for coming on "mad money" a bunch of times, too i'm trying to figure out the priorities, what would help you the most a five-minute test that would

tell you what you're -- what some of the lives that you back are seeing, or something about more personal protective equipment because it does seem you go through it quickly, that's hurt the process in hospitals. i know it's difficult to balance these, but i feel like testing, testing, testing would really help cigna >> i'll boil it down into three. we've been working every other day, there's a group of ceo leaders who come together crossing hospital, lab, home health care, skilled nursing facility, pharmacy services, to ask those very questions you hit on two of the three. one is ppe we need to have the ability to get the ppe or the personal protection equipment to the right place at the right time. and the way in which the country is rising up to that is quite inspiring, though there are hot spots and additional

acceleration necessary in the production and distribution. second then is testing the accelerated testing. there's a hierarchy. in-patient first, medical professionals, first responders second individuals who are high-risk third and others fourth. and then third is what we've all become accustomed to talking about now, social distancing reducing the risk of onset taking on the responsibility to reduce the risk of onset, all americans have that responsibility we've learned now washing our hands for 20 seconds is really important. we've learned social distancing is very important. if you take those three items, while the medical system is working feverishly to triage those who are ill as well as to evolve therapies and vaccines, that's what we need, those three items plus the medical system doing its work >> would a -- would the number three item, social distancing, would that benefit from a national lockdown or national travel ban >> that's not my call.

i think you see the country going through different phases of it. first and foremost i'm proud to see what corporate america did corporate america stepped in and aggressively moved to supporting individuals to work at home, for example. we have probably in excess of 90% of all of our colleagues in a work at home situation from that standpoint because of the nature of our business, some people need to be in the work setting. we've limited that social distancing from that standpoint we provide additional pay for those who have to be at work, whether it's tied to care delivery, pharmacy service delivery, et cetera. we also offered an additional 10 days of emergency ppo because we know individuals are trying to balance work life, caregiver, sandwich generation, et cetera so number one, corporations are stepping in quite aggressively then secondly, the government has to deal with in from a local to national and national to local basis. we're not a one size fits all country, in this case it's not a

one size fits all solution, but the intensity is ramping up. more political leaders are finding that more aggressive postu posture, social distancing is probably in society's best interest over the near-term. >> david, david faber. what is your sense right now in terms of the financial health of our nation's hospitals i would assume they'll benefit from the fact that you'll be covering all the costs related to some of their patients or the patients who have your insurance. what are you hearing and how will this industry look once this virus passes? >> yeah. there's strains to every business, no doubt about it. i was listening to jim's comments before i came on. so the strain is acute as you deal with the hospital and the care delivery part of the equation, obviously we're seeing in the country those elective procedures or those deferrable procedures are being asked to be deferred by hospital leaders, but policy leaders and otherwise, that's an extraction of revenue from that standpoint.

conversely there's an onset of certain services consumed. you're vecorrect, the action we took, we're doing our part by saying the hospitals don't worry about that part of the reimbursement, don't worry about that part of the collection process, don't worry about bad debt attached to that, we want to support you from that standpoint as you saw the stimulus bill, there's dollars being allocated towards health care delivery services from that standpoint. we'll see most cases the strongest of the strong will be there. the strong players will provide support for their brother and sister locations around the country. and some of the hospitals that may be in a little weaker financial state might find themselves in a state of disarray more rapidly. elected officials need to be prepared to step in quickly to provide the financial backing that they need >> david, it's carl. i thought your answer on testing priorities was interesting because do you think the debate is going to come down to when we get high speed testing at scale

and antibody testing at scale, do you test high-risk individuals first because of their vulnerability like you said or do we test low-risk individuals first because they're the ones who are most able to get back to work >> i think when the testing capacity eanour country testing a higher rate across the board my comment, carl, was relative to the present time. let's take an example of why i referenced what i did. working with hospital partners, we're able to see that, the priority is to get noncovid patients out of the hospital if possible into long-term care, skilled nursing facilities or home so our industry works with hospitals to accelerate those transitions, we needed to make sure that individuals were covid negative so, therefore the prioritization of in-hospital individuals consuming first. to your point, as the rate and scope of testing expands, and it is, companies like quest,

labcorp and others are ramping at quantum pace and there's additional testing in terms of speed or type of tests that expand, we'll see societally more consumption of the testing to help identify individuals at risk or people who may be a symptomatic and carriers from that standpoint. that's the next thing to come. >> david, one of the things that you have talked a lot about over the last couple of years is whole health mental health help you have expanded telehealth access to mental health. are you seeing people access this in this time when people may not be sick but certainly feeling the stress >> appreciate the question simple answer is yes you recall that we fielded the largest study of its kind some time ago relative to loneliness and in the united states we have an elevated level of loneliness.

the social distancing runs the risk of perpetuating that further. so the ability to have mental health or whole person health services brought to bear and more easily accessible including, itinclude ing, it -- including tele is important. having chronic care management, acute care management is mission critical we see the two cohabitating. if an individual has a chronic disease, about half of all americans do, they're seven times more likely to be clinically depressed if that clinical depression goes untreated, there's a multiplier effect on their health issue and health challenges. we're trying to acknowledge that, understand that and step in and to your point, telehealth is an example of expanding the access and services for the benefit of individuals >> david, what about cigna itself to say this is an uncertain time

is an understatement given that, a lot of the ceos i speak to are trying to figure out ways to pull back. to cut expenses. are you doing that as well if so, where >> we agree it's an unprecedented time stepping into 2020 we're carrying some meaningful momentum as a corporation. first growth momentum, outstanding client and customer retention around the world, expansion of relationship and new business ads to the corporation from that standpoint but to the macro statement you make, there's no way a corporation could step back in the current environment and say given everything i know today, what i thought i was going to execute in 2020 i'm going to be able to execute it exactly the same it presses the be dynamism of a corporation aggressively we're not arbitrarily pulling back on expenses i made the reference where we're spending more for colleagues who need to be in the work setting,

in the provision of care or the supply of pharmacy resources but we are and we will dynamically reprioritize where and how we're investing. we have a very large r & d discretionary pool that we have, we have a venture fund, those investments would have a higher hurdle rate right now to be deployed, simply because of the unstable environment that stands in front of us so in a macro level, of course we're revisiting, but it's not an across the board cut because our 170 million customer relationships around the world still need to be served and we're growing in those relationships, we need to be in position to serve them >> david, jim. you're an international company. why are things less dire in germany, very dire in italy and catastrophe in spain >> i don't think i'm the right

person to give a pinpointed answer if we look back at a few points of similarity, south korea and italy as an example. south korea has a population that is older on average we know covid-19 affects the older population more acutely. it seems to affect older males more acutely than older females. italy's population skews older, and older male three, it attacks smokers a bit more aggressively. south korea has a somewhat elevated smoking percentage, italy has a higher smoking percentage if you take that as a population measure, second piece. it's clear south korea was extremely aggressive and constructive relative to what we know today as social distancing and testing. if you look at italy, they were

less aggressive to social dirsing even after the country put forth certain mandating. i take the data of the people, age, age and sex mix, smoking, there's higher risk across the board in this case italy secondly, how aggressive one was with social distancing and how one was with testing to inform that social distancing and inform the triaging. those seem to be playing out as we look at the comparison of spain versus germany that pattern is playing out consistently >> david, thank you for your time a lot of good information. a lot to absorb. >> great to be with you. let's get to the opening bells here as we await the first ring of the week at the new york stock exchange

jim, i thought that was fascinating that last question of yours about just the myriad of variables that go into each country's experience that we have seen so far, demographics, the mix that you have with the elderly, smoking, splupollutionu name it. >> i think a lot of us are trying to figure out what the heck is the italian medical system bad? what's going on in spain there really is -- you get the sense that they -- for lack of their term, they didn't take it seriously. their lungs, which are the epicenter of this ill bns, wene compromised. i have a place in italy, go to italy quite a bit. you're astonished that you're the only person not smoking. i know david was quick to say i don't really know, he gave me answers i have not heard

i'm delighted that i at least understand maybe we are more serious than italy. i feel terrible that the italians didn't figure it out. very important learning from david cordani. >> yeah. guys, as we were talking to cordani, the president on the airwaves, roeuters says the president plans to speak with putin today and that saudi arabia and russia both went crazy over oil prices. we know crude did become a teenager briefly overnight at 19.92. >> the s&p futures trades directly with oil. one problem with oil, we're not using it the roads are empty. the tanks are all filled up. it's natural to believe even if we're still producing 13 million in this country, no matter what they do in saudi arabia and in russia, they can't seem to stop the permian. because of that, there's a lot of dire predictions that oil

could go down to 15, 10, unless the saudis and russians let up i think it's the saudis that need to let up maybe the president has a good relationship with putin, but they never demonstrated to be anything other than our enemy comment it comes to anything economic if you want to know how the s&p futures are going to do, watch the talks with the president in an odd position for the president, he wants oil to go higher simply because no one is driving any way, so what's the harm. >> you've been calling for him to call up saudi arabia for weeks now. it hasn't happened >> no. >> very unclear that anything comes out of a conversation with putin, one would expect. you've talked about 20 bucks as being a key level as we watch it hovering at 25 cents above that. there are a number of people -- listen, you can always find people in any market who think the commodity will go down that's certainly the case here there are concerns, given the demand picture, given the continued strategies from the

saudis and the russians that we're going to see this become a teenager and consistently so >> yes who wants it where do we put it we keep pumping. it's not like we can radically curtail pumping. there's no real demand anywhere. so it's certainly realistic to think this is just a classic case of supply and demand where the refiners are caught. we have tankers everywhere, people are betting that wait a second, maybe there will be a quick jump in oil. i don't see that it's the most perplexing market. the u.s. companies don't cut back it's not what they do. the scott sheffield interview last week with brian sullivan was really incredible. he's talking about tremendous consolidation based on the idea that a lot of oil companies won't make it. we are seeing retailers where they won't make it oil companies, and then the stock market doing well.

there's a disconnect, but maybe the answer is there's a lot of companies in the s&p that are truly service oriented companies, maybe the services won't take a hit even if oil goes much lower, which could be good for them. >> though, carl, it is always important to point out, not that we don't know it, maybe we don't mention it enough, it's not just our economy that's like this, india, the uk, spain, france, germany, italy, the list goes on and on here, major economies in this world that are more or less shuttered at this point. >> it's one of the things that -- there's so much to absorb domestically, you forget that the mass migration that's going on in india now and the public health implications of that kind of migration would be mind boggling in a regular world, we would be paying attention to it. there's just too much at home to deal with. guys, phil lebeau points out on twitter there's not a single

vehicle final assembly plant in the u.s. that is running this morning. we were talking about oil. we know what's happening to jet fuel demand, gasoline consumption, and now we're having to see these oems respond to what is going to be some bloated dealer inventories >> yeah. think about that think about these towns where they have the factories, think about the small businesses there's just no -- there's no work, there's no demand. you see the domino effect. i think that the industrial manufacturing -- our manufacturing sector has devolved into something that's more of an assembly business that's why it's hard for gm to make ventilators they're not in the business of making equipment necessarily that would be similar to that versus say making a tank in world war ii or an aircraft in world war ii, which gm was heavily involved in. i say this is the shutdown of

the real economy i deal with a lot of short sellers. i deal with a lot of long owners, too. the short sellers are like what are you doing? why are you taking up these companies? you look at the companies, they may not be the companies being hurt, but somewhere down the line, if mnuchin's plan to put 2 trillion into the market is not enough, then you will see another leg down this is a band-aid i think it's an appropriate band-aid, it's a good band-aid i don't know how long we can just hope things will get better for royal caribbean. the president said yesterday the cruise lines are a great industry but where the demand for the holland american line? david, i know you're not necessarily a cruise taker, but let's look at the idea of the -- perhaps one place on earth that is -- is there another place on earth that you would prefer not to be than on a cruise line on the 18th floor please tell me >> it's certainly not an ideal

environment for me to imagine. i will grant you that. i can look at you. you can't capture the shot because we're so far away from each other when i turn i'm looking at you we're pointing at each other >> david, you have to pay for this they're not paying you that's one point >> right >> second, when you read about the ones that are still in the seas, don't you find it's rather amazing, as i look at you, there's still people -- there's still boats on the seas? >> it is you know, jim, it also puts you in mind and, carl, of how behaviors are going to change even when we do get through this >> right >> how quickly -- until we get a vaccine, i guess, are people going to go back to restaurants or willing to go to sporting events, other venues i don't know the answer. we don't know the answer >> no. >> one would imagine it's not all going to come back immediately. >> yeah. i keep thinking about the high five

i always -- i always do a fist bump with david in the morning i can't imagine something exactly more horrible than that right now. just an unbridled touch of someone who for all i know on the subway this morning. >> yeah. it's true. i'm looking forward to the nba coming back and then not doing it anymore around the foul line. that will save time. >> that's endless. >> we're going to need a larger telestrator, a giant telestrator at the other end of this so you guys can stand together. >> carl, we have room for you down there yeah >> if our viewers are just joining us, one of the more encouraging interviews of the day was alex gorsky of j & j as they announced they're a lead candidate for a covid-19 vaccine, which they think could start seeing human clinical trials in september at the latest take a listen. >> we expect to begin first in human testing in september, but in parallel, as you know, not only do you need a safe and

effective vaccine but you also need to have one that can be produced and in very large volumes. we'll be doing that simultaneously right here in the united states. we expect to have results, interim results from trials in december, at the latest early january that should put us in position early in 2021 to literally have hundreds of millions of doses available and then by the end of the year up to 1 billion >> look, just total hope there just total hope, carl. >> but i understand that, but you have to imagine gorsky has chosen his language in advance very carefully when he says high degree of probability of being successful, why would you walk into that without some kind of data to back you up in the background? >> it's such a great question. when all of this started, i canvassed the drug companies to see who was in position to do

respiratory, to have something about this almost all of them said the same thing to me, which is we're kind of caught with our pants down on this we don't have anything now when you deal with roche, they're trying some things now they're trying older drugs, off the shelf that tend not to work when you talk about the vaccines, which are so important because dr. fauci keeps saying over and over again this thing is coming back to know they're this far ahead on a vaccine and regeneron is this far ahead on a vaccine. we have tough times ahead, there's light at the end of the tunnel the light at the end of the tunnel is from very -- really big companies who don't have to say anything david, these companies can just shut up. they don't have to go on air and say listen, we may have something. no one would criticize them for being quiet. >> no, no, but it is good to hear from them certainly when they have something to offer you know he's a serious guy. he's not just coming on in some way to tout something. they obviously really believe

they'll be in position to deliver something efficacious. it's still months and months away, jim. you know, guys, before we sort of get to the broader market, bob, we're up on the s&p google shares are down there's an upgrade today >> right >> but my old media focus, a lot of those stocks down again, discovery, viacom, fox, disney all done sharply, even though ratings are very strong. there are concerns varied. but what about google and facebook what about small and medium-sized businesses that advertise on google? aren't we supposed to expect that they're not going to be spending a lot of money for a while? >> that's right. that's why i think you have mixed emotions on what people are saying about google today. i do think that google is not going to make the numbers when it comes to enterprise spend i think that facebook is not going to make the numbers when

it comes to small and medium sized spend. there's a lot of engagement but also a big cutback in advertising. why not? it's so easy to cut back it's one of those things you know the big companies say you know what? that we can hold back on that's -- that's not really important. then you always have these other companies that say this is when we have to make a statement. this is when we do it. those companies are not in evidence yet right now we have people saying i don't know, i'll hold back the only outfit doing it right is amazon. i think once again, all of us are now used to the -- particularly in the suburbs, you get -- you get your knock on the door, you get your doorbell rung, and then there's the amazon box, the guy that runs away, which is what you want >> right >> you figure do you spyou spra box with clorox? do you leave it in the sun >> the two-day rule. >> i know. >> ibought socks, david, you

know i like to buy my socks at kohl's i must have pressed the wrong button i have 72 gold toe socks i was thrilled, i knew i couldn't have it for two days as it baked in the sun. i'm thinking where did i -- just get the gloves, then i say no. that is a box full of covid. covid box. >> now i know why my sock order got delayed because jim has been hoarding >> david and carl, understand that some things there's a priority >> i dived right in. i'm taking enormous risk i'm opening those boxes very quickly. >> this is why i can't fist pump you. you don't exercise any of the common sense we all know boxes, two days. >> i got my wipe right here. >> do you wipe off -- you don't go to the supermarket. >> i did recently, yeah. >> canned foods. >> yep >> canned foods. >> a lot of that >> jeffries takes procter and kimberly to buy today, jim, on

pantry loading that's their term. >> yeah. it's back. when i spoke to hormel, they said the center of the supermarket -- when you go to the supermarket, there's a fresh food aisle, also the frozen food aisle, you have the milk section. in the middle is the section you wouldn't be caught dead in, things that came in cans, fresh as the day they were canned. that's what's doing well spam is selling like it's going out of style now, i have not -- i had pumpkin spam earlier this year i found it sub optimal, but people -- they hoard spam. it's something that is working hershey's is working campbell's soup is working but when you buy bread it's not holding up it's not standing the test of time saltines, maybe. ritz crackers. >> i'll go for any of it i think all of us are eating i don't know about you, we're eating poorly.

very poorly. >> you and i understand -- >> and no exercise it's a good combination. >> your home gym is not working? >> i'm walking, but i can't swim >> how can you walk? >> i'm taking walks. >> man you just -- >> you have to go for a walk >> you're a risk taker i didn't leave -- i did not leave my house this weekend. >> that's not a good idea, jim you have to get out. >> no. >> yeah. >> no. >> i agree >> talk to me after the duration >> we did lose about 250-point pop on the dow at the open let's get to bob pisani. good morning, bob. >> hello happy monday look, the markets are opening flattish given the lousy economic news we're going to get this week, certainly i think a victory, the avid 15-minute test, the johnson & johnson news, all of that is positive and goes to the heart of what people need to see for a bottom which is some progress on combating the coronavirus. all of this is positive, which i think is a victory

health kcare is leading because of the good news we got from the health care leadership groups. consumers staples doing well tech is okay underperforming are banks and retailers, maybe not that surprising here. if you look at the stuff that's moving in the dow, supporting it, it's mostly the health care stocks johnson & johnson, merck, united health, abbott is having a great morning as well on that announcement there you can see that big move up there for abbott lots of notes over the weekend a lot of people trying to figure out what's going on and where a bottom might be. i think the important thing is we all agreed on the sort of criteria we need david kostin at goldman is as good as anybody else on this, progress on containing the virus, that's the key thing. we certainly saw good news today. that's why we're flattish. evidence of fiscal and monetary policy stimulus working and a bottom in positioning in floats. what does that mean? lower volumes of trading activity lower vix. we're still not quite seeing

that this morning we moved in a 60-point range in the s&p 500, that's better than 100 it was 100 last week a little lower here. watch these crazy moves that we've been seeing here in the last few weeks lower -- goldman thinks lower in the coming weeks as we absorb the economic data. they're still up 20% by year-end 3,000, that's a 20% move from where we are right now we could see the market swings in the last week how crazy they are. remember the lows last monday? 34% from our highs then all of a sudden, thursday we had the enormous rallies, suddenly we were 20% from the lows everyone was saying this game may be over. we ended with a smack in the face on friday reminding us about bear market rallies and things like that as people brought out the history books from 2008 and now we're 15% off of the lows. there is no clear indication from the market about what's going on right now i think the key thing is to watch the vix. i spent a lot of time talking to people about what the vix is

telling us the march average on the vix is 57.8 a year ago the average was 14. so we're talking about a 300% increase in the vix. the daily volatility in the month of march is about 5.5% on the s&p. what does that mean? that implies a vix of anywhere could be from 80 to 100. that's the actual volatility, if you measured the volatility of the vix actually, 80 to 100. these numbers are elevated there's no chance anywhere that the vix will drop much until we see this intraday, the actual volatility, the realized volatility drop. the vix now is down a little bit. it was at the open in the low 60s, people want to know what they can see it take to the 40s, intraday swings in the 2%, 3% ranges, not in the 5%, 6%, 7% ranges we've been seeing throughout the month of march. there's the one thing i'm watching i did talk to the inventor, the founder of the vix, robert

whaley, you can see my interview with him, cnbc.com, he has his opinions on what volatility index is telling us. tradertalk.cnbc.com for more on that back to you. >> very cool, thank you. keep your eyes on fixed income and the dollar as well. let's get to rick santelli good morning, rick >> if you look at friday, right towards the end of the session around 68 in tens, 24 in twos. we're about the same yield in twos, but down about five extra base points in tens. look at the two-day chart. you see what i'm talking about here we sit at 63, which puts us down a handful of basis points that handful of basis points that impacted the yield curve. we're now under 40 in tens minus twos it wasn't that many sessions ago, we were at 53, 54, 55 so you can see most of the big action on the higher-priced lower-yield is in long

maturities let's look at a month to date of tens, and what should jump out at you, we're under ten basis points away from 54. 54 from the 9th of march, you see that low on the chart, that's the lowest close ever look at the two-day of bunds, down six basis points at 57. on the 9th of march,ent. what's pareimportant is the dol index gives a great barometer. we're seeing a global nervousness reflected in the demand for dollars it's correlated with the higher temperature across the globe, and while this is going on, yields are going down, we can't print son-in-linvestment grade

fast enough. we're continue to monitor at cnbc consider on the 9th, we were under 95 on the 10th, all the way up to the 20th, we were zooming for the highs at 102.81. if you're looking for volatility, whether it's the pound versus dollar or dollar index, foreign exchange is the place. david, back to you >> rick, thank you rick santelli with the bond report we're going to take a quick commercial break and have the ceo of eli lilly joining us next hour stay with us

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stocks stable this morning dow is up 250. down 100 currently up 50 as boeing is the swing factor don't miss the ceo of eli lilly on the race for a covid-19 treatment. we'll take a quick commercial break. stay with us

let's get to jim and stop trading. >> gordon hasket, this time it's -- let's put it this way.

there's a negative piece today by john about 3 m, and what i find disconcert, he takes it from hold to sell. gm is a dividend risk. 61 years of increased dividend he's saying that there's overhead and issues involving pollution and ground water, he says this could place 3m's dividend at risk we see in germany the government saying maybe we shouldn't have dividends. i think we have to be conscious of why people own stocks fixed income is hard to come by. stocks are a way to get yield, and right now john is saying that yield is in danger. be careful if you're buying stocks betting on getting a good dividend maybe the dividend is at risk. >> huh you mean, episode. you don't think we'll import like germany >> that would be hard to believe. that's socialistic i think after we cancel

buybacks, people are going to say first, our dividend is at risk i think dividends aren't at risk from the government. they're at risk economically you have to look at each company you own and decide that dividend is safe. if it is outsized there between 8% and 10% versus 3, 4, you may have something wrong at the company. if you can't figure it out, then you should not maybe own it, because this is questioning cash flow and that's going in almost every company i follow >> that's the key. if says if ebita declined 15% below their current projections, and they're also adding what they think is the p fast liability. then you get to a debt to ebita ratio of almost five times that's not good. it goes back to leverage and the companies that have more debt. they thought their balance sheet was fine, but in this period

it's a different story it leads me to boeing. the s&p is up almost three quarters of a percent, but boeing is weighing on the dow and why that's flat. it's down over 10% this morning. >> boeing doubled between monday, prescient upgrade by goldman and friday and yet, nothing that great happened at boeing given the fact that the bill that passed congress wasn't a bailout for boeing there was a lot of misperception it was it just wasn't strange. very strange action. sara there >> yes, i'm here good morning, everyone i want to welcome everyone back. 10:00 a.m. on the east coast i am sara eisen with carl quintanilla and david faber and jim cramer we are coming from different locations. indecisive action in the markets. the dow has gone positive a few times. attempts we're pretty much flat right now. up 24. boeing as jim was saying having

an outsized effect the s&p is higher by three quarters of a percent. the nasdaq up 1% as hope around health care dominates the narrative today. j&j with a vaccine candidate we're looking at testing we're looking at antibody testing and possible treatments following every single word from the health care providers and the great pharmaceutical companies in this country. we have some data at the top of the hour pending home sales are crossing. let's get to diana for the numbers. good morning >> good morning. pending home sales in february jumped a wider than expected 2 .4 % for the month the street was just expecting about a half percent jump after a strong january the highest level in exactly three years. the numbers are based on signed contracts to buy it remains to be seen if some of the contracts are cancelled.

the chief economist for the realtors says numbers in the coming weeks will show just how hard the housing market was hit. he says he's hoping for a v-shaped recovery with demand being pushed to the fall we don't know whether that will happen yet sales were up across the board but strongest in the west and the midwest. one thing to note, some estimates are showing that this spring while it was shaping up to be an incredibly strong housing market for new and existing holeexis existing homes sales this spring could drop about 35%. we are seeing a big jump in virtual and solo home touring. that story just went up on kroi cnbc.com a nice win in february, but don't expect to see it get stronger in the coming months. >> everything is going virtual diana, thank you go ahead, carl >> part of the new choreography on television. jim, i want to ask about a few

things obviously the stable nature of the equities today the fed said on their website rates on commercial paper across almost all maturities were down on friday. mnuchin is on the tape this morning saying he thinks the existing relief package could get us through the next 8 to 12 weeks. and says they will release documents and instructions later today for how small businesses can start to apply for relief loans. so how much of this stable action is constructive right now? >> look, i think that a lot of people when the futures open expect them to be down limit that's been the way to go. the market on friday was just abysm abysmal. gave up a lot of the 20% the fact is this is a day where you can do something if you decided you wanted to go sell a stock, you wanted to sell an industrial, there's going to be a bid there's no -- you're not seeing the -- let's use the stock like sysco. sysco has been under pressure,

and started coming back last week they do have web access. it's doing well. a good balance sheet and dividend the stock was at the mercy of the programs when the programs went down, it got hammered here's a day where it's relying on its own merits. this hasn't happened in a long time it emboldens buyers, not sellers. it says maybe we have a couple days where the short-term isn't so bad spain peaked perhaps in deaths italy peaked perhaps in death. the government is not using an unrealistic april 12th but is starting to get very serious about how long this is going to take national lockdown is a possibility. maybe a lot of protective gear coming ventilatoring cos coming, scien coming it's not a joyous day, but it's a day where you don't feel like you're getting beat over the head i think the last few weeks we've all come can to say i know that

person who got sick or this time it's someone in my family or it's closing in on us, and the personal existential was really controlling a lot of the trading. all this will go away if oil goes down badly. there are people who do nothing but algorithms and it says if oil goes down, sale. what people don't realize is that people who do algorithms have a lot of power and pay a lot of people. and as far as the regulators are concerned, it doesn't matter so there's kind of a pipe dream that somehow the algorithm people are going to go away. i'm looking at david david knows the solution which is that algorithms are here to stay and it's the little guy that's not the little guy gets blown out because who is the little guy? who is hell is he? >> we've been talking for years about the power of what we call algorithmic trading or those employing ph.d.s, people with a

background in that who don't have a background in the stock market but understand how to write programs that connect a, b, and c and the various relationships between them, jim. that's the world we live in. money has moved into those so-called quantitatively driven models, and, in fact, they're probably bearing out right now because my guess is their performance is not as bad as your overall hedge fund. >> half the individuals who were taught if i buy shares of eli lilly over time,ly do quite well we're going to have lily on. it's been a great invest why do those people have to get blown out? why do they have to have such fear the sec doesn't think anything of it. it seems that there is no -- anyone arguing on behalf of the person who just wants to buy 100 shares of lily disenfranchi disenfranchised. >> if you're a long-term investors you can use opportunities if you can hang in there as an opportunity to buy >> totally

>> look, i'm just trying to keep people in the business of stocks, because of what i see in fixed income and fixed income will not provide you with enough money if you retire at the age of 67. >> no. >> it won't. >> no. that is one of the keys that we haven't discussed as much. of course, this low rate environment, not that it was low rate to begin with dislocations in the municipal bond which has calmed down a great deal over the last week given the fed's actions, but worth mentioning >> the fed -- >> a lot of people thought they were money good on their municipal bonds, looked at the portfolio and said what? >> yeah. the municipal bond market has been in disarray in some states. i do believe that there's -- we don't talk enough about how people live off of mfixed income there's been -- it's great to buy a house, and we heard diana talk about how people are buying virtual homes, but it's not

great if you're a person who is 68 or 70 and trying to figure out what to do the answer to me had been individual stocks but if they're driven away by a dysfunctional market, they're the losers too let's stay close to the idea that the market doesn't have to be dysfunctional today is not a dysfunctional day. >> i wonder if one of the reasons the market is being less dysfunctional is let's not underestimate the fact that the fed has done some unprecedented massive stimulus or stabilization of key markets like investment grade credit, like lowering interest rates to zero and starting to buy bonds the fed balance sheet 5 trillion and climbing is pretty remarkable and then the stimulus. the relief bill that has been signed now by the president $2 trillion is also something to quote president trump, the likes

of which we've never seen before so we are getting the support in a fast time. i just wonder if that's from the underpinning here of the less volatility >> no, you're right. look, the fed -- >> the previous few weeks. >> i remember the fed coming to cnbc and i said he had to buy mortgage bonds it was the usual disrespect that i get shown when i feel like that there's some senior guy comes in and i got a yahoo idea. and you know, look, i'm just a guy to talks to a lot of people. this time chairman powell said we've got to buy mortgage backs. why? because mortgage rates were going up bernanke fought this he's a revered figures we need revered figures. those are great to have, but the fact is the fed fought it the whole way last time. and that was one of the reasons why it was exacerbated this time jay powell, he came in with everything blazing.

and that made a lot of people feel better because the hedge funds were like this market is frozen and that market you know, and he took a blow torch to everything that was frozen and also to the complainers. it was really kind of cool it was so good to see only a couple rich people crying. isn't that great, david, when there's only a few rich people crying >> we do get out our tiny violins. >> it's so hard. did you ever try to water ski behind like a 70 -foot yacht it's a bad game. >> not good? >> it's really bad if you're rich >>. >> let's talk about what we're learning about this horrific disease and what we're learning about fighting the disease let's bring in glen who is going to talk about what his company does and how he's been involved in fighting covid-19

>> sure. good morning let me first start off by saying our hearts go out to all the people who have lost loved ones to the coronavirus, and also to the real heros of this challenge, the doctors, the nurses, the professional care givers they're doing an extraordinary job. we want to do a shoutout to them we're focussed on remote patient monitoring in fact, we heard david talking about telehealth and the country's been educated to what telehealth is now, and if you like telehealth, you're going to love remote patient monitoring what we do is meet people where they are, and allow them, empower them to take care of themselves when they're at home. and let me tell you why this is particularly important in fact, if your viewers take away only one thing from this segment, it should be that last week it was reported 90% of all the deaths from coronavirus in

new york were for people with preexisting conditions or chronic conditions and what the experts have said is those groups of people who are very vulnerable should not be showing up at the er or going to the hospital. they should be staying home. but you need to be able to monitor them to keep them safe at home, that's what we are doing through our technology we're happy to be there for more than a quarter of a million people today and growing, because this has caught the attention of health insurers and health providers, and even of the government as well >> with your data on the more vulnerable population, what have you learned in terms of how vulnerable they are and what sort of conditions are most at risk >> well, then you think about people with diabetes or hypertension or weight management problems, they are not more likely to get

coronavirus, but if they get it, they're much more at risk. and that relates to that 90% figure i just talked about so we have to keep that group of people, again, away from the hot spots, away from where the infections are, and that's at today at the hospitals, at the doctor's office, at the emergency room so the best thing to do, shelter in home as you've heard, and, again, if you think about health care in the future, you know, this is probably the most serious challenge our country has faced in a long, long time and yet, after we get through it, we will get through it and we'll get through it together, but we will get through it, we'll see fundamental changes across a variety of industries people will figure out you can do education at home they've figured out how to use amazon, but now a much larger group is going to get their groceries and other goods through amazon and they're using zoom everybody is using zoom today,

and other technologies like that but the biggest change is going to come in health care we're going to understand that we can do health care remotely and provide remote tools that people people healthy, and then focus our physicians who are so critical on the people who really need their care not on doing checkups that can be automated today, so we're going to see these fundamental shifts, and remote patient monitoring we believe is going to become along with telehealth a new standard of care that's why we're talking with our clients. whether it's the large fortune 100 companies or payers or provider systems, or even the government where we have more than 5 million government members who work on benefits all those groups are starting to look at this remote patient monitoring as the way to do things and again, giving people 24 by 7 access and all of what we get

from all the other digital services we like, but turning that energy to health care that what we're focussed on at livongo. >> i think people should know you got involved because your boy has type one diabetes. i hope he's doing fine >> he is thanks for asking. >> let me parse what you said. you've got a group that's very at risk, and they're not at risk because of their own fault, but they really could be helped by a national lockdown, or a lockdown like what's going on in california do you find the patchwork notion of where you can go and where you can't and what beach you can be on what streets you can be on, do you find it unnerving for your own customers who truly need the protection of a stay at home lockdown? >> well, look, we would benefit from a federal leadership. we haven't seen it

we've seen great leadership from states, from governors from new york, from illinois, from california it would be great if we had better leadership. interestingly, there was a great study out, and i know you were talking with david earlier about the reasons some countries have done better. there's a very interesting study that talks about the countries that are used to wearing masks and basically that's japan, taiwan, south korea. ifpan, it's very common to see most people forget about coronavirus, just on a normal day, wearing a mask over their face those countries have had dramatically less incident of coronavirus. so one, social distancing. two, wearing masks and three, being smart about getting together in groups i think that is as important as trying to put in artificial lockdowns, because big parts of the economy don't have the

luxury of not going to work. again, we talked about our brave physicians and care givers, but there's delivery people and people who cook for us and people in stores so the lockdown, you know, we want to be sensible, and we have to push people in chicago we closed the running trails. we've done very smart things to keep people from congregating, and we all have to be good to each other by doing social distancing when i was in the studio the last time, it was the first time we didn't do a fist bump even you are practicing it aggressively, i know and that was before we saw the real spike in the u.s. so i think that there things we can do i'm not sure locking down certain areas of the country is the best solution, but we know what does work social distancing. wearing a mask washing your hands all the things we've been told repeatedly, and again, our companies have stepped up across

the board by allowing people to use digital technologies and work from home and now we're seeing the health system start to embrace digital technologies, and once we unleash that genie, it won't go back in. so people will say if i can do my appointment remotely now, i can do it in the future and save the travel time. >> i think a lot of things are going to change forever. glen, thank you. we wish you and all your users very well during this tough time >> thank you very much same to you. meantime, eli lilly is co-developing a potential treatment for covid-19 with a biotech company. we're joined by the ceo david ricks and also bill george good to see you both bill, let me turn this over to you and start us off >> good morning. dave, thank you very much for being here we can only imagine how busy you

are trying to keep the company running at this difficult time with people working from home. you announced this partnership to go in the direction of finding a treatment with antibodies and yet, many of your competitors litalking about a vaccine starting in september, and moderna is in the clinic tell us why you went the route of therapy and how you're coming at it. i realize it's only been two weeks joins made the announcement, but what's your outlook? >> thank you maybe start as well,today is national doctor's day. and from our company to every doctor in the u.s., and i'm sure from all of you in the studio, we want to thank our front line health care workers right now. this is a serious moment for all of them, and we're all thinking of them as they go to their job today to save lives. it's what they train to do we're trying to do our part too.

you mentioned the therapeutics collaboration we have. and i think across the whole of industry, bill, many companies, maybe all companies, are redirecting all discretionary scientific and medical prowess at the problem of arresting the coronavirus. for us, that falls into two tracks one of them you mentioned, the therapeutics collaboration, we're good at making antibodies at scaling them and producing them, modifying them to be more like drugs our partnership has isolated antibodies from human survivors of covid-19 and selected antibodies that appear to have a strong effect on arresting the spread of the virus. we're going to try to isolate those own make them into a one, two, or three antibody cocktail. we hope to start clinical trials in july. other companies are making vaccines or repurposing existing treatments

we've heard about anti-virals and anti-inflammatory drugs. we have one of those projects too with an anti-inflammatory drug it's been investigated around the world to help those who have ards, the acute respiratory distress syndrome. that's another approach. but across the industry, everybody is working together, and in a very rapid way to try to arrest this crisis. >> so dave, just to follow up on that, yesterday the fda announced approval for anti-malaria drugs without any clinical trial work doneeven though people said it could be a year and a half to two if there are promising results for the antibiotic therapies, is there a possibility that we might truncate the usual year and a half or so of clinical trials and get there sooner? is there a way to get there faster or is it pretty much going to take that long? >> we hope so. i think every signal we received

from the tda and other government agencies is they're moving at light speed and would like to see this tested in patients first we need to do a clinical experiment that won't take too long, and then potentially look at either a very large clinical trial to expose people who are sick, and tested in the real life, or even a conditional license type arrangement where we can make it available. interestingly, maybe the constraint might be how much we can produce, and we're pulling forward activities and planning around that so we can make enough if it does work so we're planning for the fastest possible route, and the fda's move on these anti-malaria signals their posture to open up all aperture for solutions >> it's always great to see you. it's jim you mentioned something that is the holy grail you're working on something for ards that's killing a lot of people it killed my father.

and when i was investigating it, as you obviously would as a son, i was told this was at hub, forget about it. there's nothing for ards do you really you think you have something? >> there's a number of experts who believe ards happens in covid-19 because of the response to the virus itself. your body's own immune system is flaring up, and producing a huge amount of response in your lungs to the virus this is actually one of the main problems people have with oxygen exchange and breathing in the advanced stage of the disease. there are studies announced with the so-called inhibitors from two other drug companies, this is thought to be a promising approach if that works, the approach we're looking at likely also will make a difference because it works in a similar way. reducing that inflammatory response in your own lungs it could keep people from going onto ventilators or get them off

ventilation quicker. there's studies in china, europe and the u.s. looking at this problem. we'll talk more about that as we see the data and we may decide to stand up an independent study ourselves. >> what a wonder drug. thank you, david what a wonder drug >> david, it's carl. i hate to ask about father on mother's day, but you do mention some of the different paths companies are taking it feels like your viewers have a lot of opinion about high driving while intoxicated color quinn. >> it has some preclinical effects. that's what our scientists advised me there's a number of small studies that look promising. in our business typically we like to do a randomized control study to know whether something is making a difference we haven't seen that data here i think the federal agencies

have a different job our job is to prove effectiveness. their job is to protect and promote the human health and their judgment at this point is to move forward with less evidence, apparently that's their call to make. i do think we would all benefit from a randomized control study being done to see the true effect i don't know that would take as long as the number bill mentioned earlier, a year or two. i think you could do it pretty quickly. for our approach with our therapeutic antibody approach, we're planning for a relatively short study. if it works, it will work quickly. one would hope if it's really an anti-viral effect with the malaria drugs, that would be quick as well. >> the history is not lost on a lot of people. you were the first in the u.s. to mass produce the polio vaccine. you gave us insulin. do you see this as a moment for you and for your company to be the first to really give us the good news that we're hoping for,

a medication against covid-19? where do you stand against the so many other treatments that are out there and testing? >> well, i think first, historically the company we're an old company we've been a part of those kinds of medical breakthroughs four weeks ago i had a conversation with my chief scientific officers. we said put it all in covid-19 we're not a viral company, but we have expertise in creating antibodies and auto immunity we've redirected a huge part of our laboratory work to testing people in indianapolis, because there was a huge testing shortage here so we created our own test had it certified and are testing about 1,000 people in our corporate center from the community. this is an all hands on deck response to me it doesn't matter if lily has the breakthrough or regeneron or johnson & johnson or anyone else what matters is there is one and it happens quickly

what i can tell viewers is working across the industry, talking to other ceos in the sector i have never seen a moment where everybody is sharing information, working with the kind of urgency we have now. hopefully that will result in a quick response from one of the companies. and hopefully we can get back to life as we know it prethe coronavirus. certainly everyone's intention is to get to that point as quickly as we can. if it's a lily effort with a breakthrough, so be it right now those individual credits don't matter nobody is talking about credit or profit. we've all just trying to get an answer to this humanitarian crisis >> dave, right now we're still seeing meanwhile before we come up with a solution, we're seeing a fast ramp up it's even growing right now and we need help for people. the most at risk group are people with co-morbidity, and

the leading right now is diabetes you're the leading insulin producer a lot of people are concerned about getting insulin and whether they can afford it i noticed you had this in the morning paper, a full page ad. what are you going to do for the insulin sufferers, particularly those who lost their job and don't have the money to pay for their insulin but desperately need it. >> today we launched a national print campaign and are trying to raise awareness about our diabetes solutions center. this is a phone number or you can go to lily.com if you have diabetes news insulin where we provide financial assistance to people having trouble bridging the gap. whether you have insurance and you don't have enough money to afford your part of the insulin prescription or you've lost your insurance, we have solutions for you. so please, i encourage viewers to call in that's what this campaign is aimed at we have two important jobs as a

leading insulin producer one is to make the insulin i'm so proud of our workers who come to our plant every day here in indiana we make it in the u.s. and they're coming day and night to make insulin so there's no gap in supply. we have plenty of supply our job first is to make sure we supply life saving medicines then we have to make sure people can get them at the pharmacy counter. the patchwork of health care can be difficult to navigate people struggle with affordability. we have answers for almost everybody in the u.s. health care system if you're having trouble paying for insulin and i encourage people to go to lilly.com and connect to our resource center. it only takes about ten minutes on average per patient we have bilingual operators and can help you that's what we announced today with the print advertisement and actually that's been running for a year and a half. we wanted to reinforce the value of that resource for patients in this difficult time. >> david, it's david faber

when you joined jim on mad money on march 13th, you said it may take more than one medicine to recover from coronavirus is that still your belief? >> yes i think once you have your -- becoming hospitalized, you have a respiratory response that is no longer manageable by the individual, it may take several medicines. most real disease advancements we've seen in recent years have been combinations of approaches. we've talked about anti-inflammatory approaches and using antibodies to attack the virus and there could be pills that could address this. and a cocktail of approaches may be used. in fact, patients are managed today with a cocktail of approaches in the icu. none of them are directly attacking the virus. i think so that's one of the benefits of this all hands on deck efforts to come up with solutions. we may come up with several that

together could have a profound impact >> you've had a remarkable transformation in a short period of time. i understand you shut down all your other -- suspended other clinical trials and doing this 1,000 testing for people in indiana. how are you keeping the company running with everyone working at home and trying to get people to come to your factories to work many must have children at home. the schools are shut down. give us an insight of how you keep the place running at this time as a leader and how you get people the courage to keep going. >> yeah. thanks it certainly has been an experiment we've -- we had business continuity planning but never thought about the scale of this running a global company off the internet as it were. but that is, in fact, what we're doing. of course, our plants where we make products, and that's as i said our most fundamental responsibility, keep product flowing, particularly insulin.

they're operating and workers are coming in as we request them we've given shift premiums and extra resources to those employees, because i think they're giving up a lot. coming to make product for patients, but they know that's our purpose and our responsibility for basically every other type of work, we're working remotely. we've adopted technology we've been dabbling in but now are running at massive scale we use a lot of the microsoft suite of tools for corporate america. they work pretty well. we never thought we'd have 30,000 people dialing in at the same time, but they are, and it works. so i heard the livongo ceo earlier. i think he's right in many parts of our society there's going to be more remot working and habits will likely not go back. one of them could be more flexibility for corporate america workers to work from home when they need or come into the office when they need. hopefully when we get back to a

more regular pattern, people will have more choices that would be a good thing child care, we have child care on site. and those are still open for employees, particularly the manufacturing workers so they can get assistance that way as well >> david, our thanks to you for all the information. and guidance that you've been giving us and please come back as often as you can. david ricks of lil ly and bill george, our thanks to you. >> be well, everyone >> jim, sn. >> we have abbott. they have the five minute test perhaps the greatest really one of the greatest ceos of our time creative management of wealth. he'll be the handoff to robert ford the new ceo as of tomorrow we have cloud compaflare.

we continue to go with what is co-vid striving. i think this five minute test could be driving the entire stock market >> jim j we look forward to it >> thank you appreciate it. >> see you later let's get the latest on the coronavirus outbreak >> good morning everyone here's what we are we're going to start with the latest numbers global cases are closing in on three quarters of a million. the death toll has climbed above 35,000 the police trucks with water cannons are usually used to control riots. now they are disinfecting madrid's streets spain reporting today it has 85,000 cases that is more than china. roughly 14% of them are health care workers including the head of spain's virus response task force. london's underground is still packed with commuters despite the uk's lockdown. britons are only allowed to leave home to go to work,

purchase food and medicine or exercise here at home hundreds of worshippers attended services at a church near baton rouge, louisiana flouting that state's ban on large gatherings. louisiana has more than 3500 cases and more than 150 people have died. and the tokyo olympics will begin july 23rd of next year olympics officials say the date was chosen to give both athletes and organizers time to prepare as always, you can get more on the coronavirus coverage here at cnbc by going to cnbc.com. sara, back to you. >> all right sue, thank you a 1% gain here on the dow. as we go to break, take a look at this live shot. the usns comfort it's coming into the u.s. har mor. we'll be monitoring it for you bringing an additional 1,000 beds to help with the overflow of new york hospitals as they're

overwhelmed by the covid-19 outbreak that's hit new york rtul hd.ar we're going to take a break here stay with us boston light, america's oldest lighthouse, has stood strong through every dark hour and bright dawn our country has endured. it has seen the break in the clouds before anyone else. for the past 168 years, we've also stood by you, helping you weather storms like this one, to protect your loved ones. and we'll do it for 168 more.

let's turn back to today's equity market. bob is with us we've been doing what we do for a long time. neither one of us have ever seen anything quite like this that said, there are things you can learn from previous bear markets. and i know you're looking at them for sort of at least some guidance here in terms of what we might expect when it comes to action in the markets. tell us. >> yeah. bear markets, as particularly big water fall declines as you know, have patterns. we typically have three phases the water fall decline the shock and awe. massive volume to the downside fear, panic, forced selling. and then we have the side wise

kind of volatile whiplash period up the limit the one day my view is early last week was the primary low, and that we're in that secondary phase. the third phase, awe you know what experience also is a retest that's typical the retest is usually on less volume, sometimes the level ends up being higher than the primary low. sometimes a bit lower. but we're in this whippy pattern now up and down. my view is on green days you let a little something go. on red days you do a little buying if you agree the primary low is in. but we'll probably have to go back and test at least 23, 50, somewhere in that order. >> when it comes to trying to be a fundamental investor in the market, particularly given what your expectations are for earnings, you know, where do you start? do you try to pick off things that look particularly cheap in some of the moves you're talking about? >> yes, you do

but as we've just discussed, we're not in a period where fundamentals matter a whole lot. earnings and pes are bouncing all over the place, and there's more things we don't know than we do know and that's why the technicals are important. but having said that, you're right. so what i observe, for example, is post qe one, qe two, qe three, we're now in qe four, technology and health care were the only two sectors that outperformed and utilities and reits were the sectors that underperformed i think there's lessons in terms of where we want to be positioned >> bob, we talk a lot about the fed stimulus and the stimulus out of washington d.c. it's happening at a global level. china cut one of the main rates. australia and south korea both came out with more fiscal stimulus wondering how the market is taking this and whether you view it as stable action, given that we've seen so much stimulus

flowing from central banks or governments or unstable given that we've seen so much and haven't settled down yet >> i think you're right to make the obsobservations. i would say the market, the environment, the economy, people's psychology, perhaps most importantly, needed this. this won't fix our economy it will aid it when it turns around and starts coming up the other side, post coronavirus there's nothing stopping this that can stop this except a decline in the number of coronavirus cases. but you're right the massive fire power of monetary fiscal policy, even market reaction, the massive decline in interest rates is eventually stimyoulative all the things together should enable the rebound to be quicker once we get there. >> bob, i wonder what you make of the reaction function today a. we just got dallas fed minus 70. it's a number we never could have imagined in a prior world jobless claims last week we're going to get more this

week, jobs friday. how conditioned is the market to handle those types of numbers versus -- you talk about the case load data when we know testing is so spotty, which is more important to stocks right now? >> you'reright we are going to witness absolutely horrific economic numbers. but i think that's what the 37% from intraday peak to intraday trough in the stock market was forecasting. it knows before we do. yes, the numbers matter, and the reaction matters it has a lot to do with the patterns we talked about does the market blink when you get some horrific number or is it just moving on and saying i knew that was going to happen. that's why i went down 37% as it were so i think we're going to have to start looking past these to figure out what going to happen on the other side, and just keep hoping an praying and watching the coronavirus statistics i cannot wait for the second derivative to turn negative.

the number of new case today being less than yesterday. that will be a nice sign >> a lot of that will depend on predicting human behavior, unfortunately. >> yes >> bob, energy is also a focus wti falling below 20 bucks it's not a large part of the s&p these days but if we continue to see the crisis worsen, will it bleed over overall sort of into other sectors and/or into the economic view? >> i'm so glad you brought that up remember, if it weren't for coronavirus, the headlines would be about saudi arabia and russia not able to agree and that decline. the 21st, 25% decline in oil was that issue in the second 25% was coronavirus. but i agree with where you're leading me on the question that is -- we're already witnessing downgrades in the emergency patch. we're going to see more. we're going to see bankruptcies. i hope eventually some

consolidation. this is not helping, because part of what has to happen is a healing on the credit side and the fed with their actions, has gone a long way to make the markets function more normally, but you can't fix the fundamentals with that oil at 20 a barrel is going to put a lot of people out of business and that only exacerbates the problem. so it will bleed it already is bleeding into other things i'd love to hear that saudi arabia and russia were going to have lunch and make peace. >> yeah. well, hovering around the 20 level, we're watching it carefully. as far as investing right now, putting money into park, if you want to do that, what sectors should you go to should you go to the staples or the health care companies or the netflixs with those companies standing to benefit from the current economic pluralasis, or

do you think about longer term, companies that will do better once we recover from the nightmare? >> because this is a shock, as painful as it is, and not a structural problem like we saw in '08 and 1929 i'm operating under the assumption this is going to be a whale of a recession, but it's going to be reasonably short therefore, looking past all of this probably begins to make some sense we started seeing last week these divergences that give me some confidence. we've seen the primary bottom. for example, there were many days wherel ocks did better than defensive stocks i'm saying begin to look past this to see what kinds of cyclical stocks aregetting punished and are likely to come out the other side technology might be a place to shop along with the more defensive health care. a little of both >> and bob, finally let me end where we started

it's the phases you described of a bear market. the idea of a third phase and retesting this primary low is there any timetable we can look back at typically in terms of expecting when that might be the case >> well, as you know, david, these things take time the average has been six to eight weeks from the primary low. so if we're going to be in that zone, i hate to even use the numbers. the standard daefuatieviation ie it's another couple months probably month and a half, something like that and we'll see the signs. we'll see the market going down, but the divergence will continue the 52 -week new low list can expand the vix can't make a new high. if those things happen, we have another leg down >> bob, informative. appreciate it. >> all the best. >> you too retail news now. specifically out of macy's the retailer announcing it is furloughing most of its

remaining work force this week they will be keeping the, quote, absolute minimum work force. a lot of the retailers across america with stores shut and traffic plummeting are having a difficult time with analysts looking at how much cash they have and stocks continuing to get punished and some of their debt including macy's gap getting downgraded recently to junk >> all right sara, thanks for that. meanwhile, stocks up about 2 % here although breadth is not as strong as the overall indices might suggest. a quick break and we're back in a moment

with markets so volatile, should investors opt for quality or go bargain hunting? find out on trading nation.cnbc.com.

let's get to rick at the cme head quarters in chicago >> good morning, carl. i'd like to welcome my guest mike cabana from b of a securities let's get into it. i just read that about six out of ten investors are comfy holding their portfolios waiting this out as a contrarian, a technician,

that tells me we're probably not near the bottom yet. how do you read such information? >> we may not be near the bottom, but it's fair to say investors are defensively positioned there's a lot of demand for interest rates at present. at the front end of the curve we have negative rates. toward the back end, we're near all time lows at least in ten-year rates >> hurnkers down waiting to see how the virus story plays itself out. >> according to my math, math w about $153 billion of short-term supply today, 37-day cash management bills, $60 billion, $51 billion at three months, $42 billion of six months. i know you've been writing extensively along with your peers at b of a of how short maturity supply is going to go through the roof how do you read opportunities for investors there, mark?

>> yeah. well we're expecting an increase in yields at the front end of the curve given the supply we think we could see $450 billion or so of front end supply in the month of april alone, which is very, very high for the rates market you've had negative interest rates at the front end of the curve and that indicates there's a tremendous amount of demand for short-dated securities we think that's going to be fleegts because of the wave of supply that's going to be necessary in order to fund the deficit and to get that cash out to americans in the next few weeks as the treasury secretary has indicated. >> now, with mortgage-backed securities, these are really starting to get a bit kinky because, a, the buying at the central bank is doing is creating distortions and the supply really hasn't hit yet how do you read the mortgage-backed security market? how will there be distortions on that front versus some of the other supply side issues like

corporates the buying of the central bank has to help these markets to achieve the type of liquidity to keep the gears turning? >> yeah. it's a great question. the mortgage market we've witnessed pockets of pretty severe ill liquidity across various products in the mortgage space. the fed has been aggressive in buying agency mortgages and that has helped a lot normalize that market there's still aspects, non-agency space and other parts of the mortgage markets that are struggling right now, and it's going to be another few weeks before that works itself out what the fed has been doing is helpful trying to get the mortgage market functioning more orderly. if they press too hard in one area you can see pockets of ill liquidity in other areas it's a while before that market is more comfortabling bae and b normal. >> thank you for the update, especially on the mbs side

sara, back to you. >> rick santelli, thank you very much we're going to take a quick commercial break as we monitor this navy hospital ship that has been pulling into new york harbor, the "usns comfort," with 1,000 beds watching that dramatic scene with mixed emotions here and we continue to see a rebound in the markets the p 0 s&50up 1.57% we'll be right back. turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions.

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welcome back let's get over to dom chu who has a sector sort for us >> we've got 7 of the 11 sectors on the s&p higher in the day coming off its best week since 2009 one of the under performers is utilities, still solidly higher on date.

shares of dominion energy and nisource interest rates continue to drift lower making those dividends look relatively more attractive. the utility sector was the best performing sector last week up over 25% sara, i will send it down to you folks. >> dom, thank you very much. watching this market rebound here, health care is a standout and we are looking at our fourth positive day for stocks in the last five. on the health care front, i think the news that you were talking about with jim cramer is the number of companies that are coming on cnbc and putting out press releases, talking about potential promises of hope, whether it is in rapid testing like abbott labs, the ceo will be on "mad money," on vaccines candidates, j&j's alex gorske on "squawk box," potential antibody treatments like we heard from

eli lilly's ceo, later in the afternoon i will talk to henry shine's ceo on the 15-minute finger pick test they're working on to test people for antibodies or immunity. all of that is being heralded by investors and the public as hopeful signs we could be turning a corner as we continue to watch these horrific numbers climb in the united states and in new york city i just wonder when we're going to start to get some real results that they can approve and we can put into mass scale, david, to start to see some reactions and fewer mortalities. this is another rough weekend of news we're balancing the hopeful promises against the backdrop which was another tough weekend. >> it was. and as all of these people who appear from these companies tell us, sara, they are as an industry solely focused on it. you can forgive our viewers and all of us, frankly, though, for having a hard time dissife

ferring the difference there are differences between a vaccine, on anti-viral, which could be a lot closer or sooner at least and these antibodies which would also be to treat people who already have the virus, but obviously cure them, sara a lot going on there as you point out it is certainly one of the better performers this morning, the drug industry so to speak. >> yes we continue to monitor the hospitals in new york city the good news help is on the way. the "usns comfort" which we've been monitoring coming into new york harbor, passing the statute of liberty and with it, extra supplies and extra beds. contessa brewer here to explain. contessa >> hi there, sara. yeah, the "comfort" is pulling into dock here in midtown manhattan. it is coming in under the guidance of 75 professional mariners and more than 1,000

navy medical personnel on board as well as the civilian volunteers as well these are folks who have been trained to respond in a wartime, responded to natural disasters, most recently hurricane maria in puerto rico and central and south america, and now they're coming to the nation's most populace city, a city that has just been crushed under the coronavirus cases, and they are ready to help here they are, as i said, 1,000 beds on board, they have 80 icu units, 50 ventilators, all for non-coronavirus patients, patients suffering under heart attacks or stroke or other medical ailments i asked the commander of the medical treatment facility who was on deck this morning, i asked him, how do you make sure that people don't get coronavirus on board this ship >> so everybody that came aboard the ship has been previously screened prior to arrival and then with the patients that we will be receiving as coordinated through the java center will be

tested before they come aboard the ship >> i want to mention the "comfort" is joining other emergency hospitals so acute is this demand that mt. sinai will operate a medical tent, erected in central park, 1,000 emergency hospitals are going up in each city borough, retired doctors and nurses, thousands being asked to respond to a desperate call for volunteers. the city's 911 system has broken records multiple times over this last week. more calls coming in than we saw even after 9/11. the paramedics were quoted in "the new york times" saying they were there on the scene deciding who gets to go to the hospital, who would benefit the most from treatment, and who -- it was just too late, that there would be nothing more that the hospital could do for you. an untenable situation for these first responders there these are desperate times in this city and desperate measures being called in. now, as you can see,