seen anything like that. i'm not sure how to look at that but there's no doubt that there was a lot of panic evident in that collapse. and it certainly is encouraging to see the bounce we've had. i do think at a minimum it suggests the cascade of selling is gone. anyone that wanted out of this thing is probably gone they've sold and they're done. that's a good thing. what we don't have yet is buyers if dr. gottlieb is right, we'll see some buyers. >> jim, great to see you thank you very much. that does it for us today. we'll see you back here tomorrow continuing coverage on cnbc starts now >> good morning. welcome to "squawk on the street," i'm carl quintanilla with jim cramer and david faber coming to you from different locations. final day of q1. futures in a stable range

overnight, though they lost some ground this morning. a lot to watch, china pmi backing expansion, the fed launches a new dollar repo operation. jim, sounds like you're focused on testing, having talked to abbott last night. >> right i think that myles white and now the new ceo recognize this, as they did during the aids epidemic, when you find out who has it, everything changes in this country, we can find out who has it, and doing a serilogical test, finding out from blood of people who have had it maybe a lot more people have had it than we knew. maybe we can find who has got it, they can be quarantined. already the carpers -- people are saying it's only going to be med techs and hospitals. myles and robert told me absolutely, this will devolve into a pregnancy test at home.

how quickly, i don't know. abbott labs is one of them dr. gottlieb is going you know what i've seen science this is working in forgave earl avor ofd guys meg's work with alex gorsky made me feel maybe next year we can go to march madness or a football game without putting our lives at risk. the numbers are still so terrible, but positive developments cannot be overlooked >> we'll get to some of the forecasts for q2 let's give viewers a chance who might have missed it last night. >> we launched two tests in it the last couple of weeks, there's still more there's a need for more. we have a collection of technologies and formats

there are more tests coming. antibiotic tests, a lateral flow version, which is more like a pregnancy test, it doesn't require instrumentation. >> see -- >> all right that is sort of -- that's on the horizon and in the near-term, we are seeing some evidence that mitigation efforts are working in italy with the percentage growth at a one-week low even some bay area doctors are n saying they're not seeing the explosion of cases they were fearing. >> and getting the ppe to the hospitals. i look at this and i think we keep hearing it's an unseen, unknown foe. we have to change that narrative. it's seen. we know who it is. we'll get it i think if we continue to act that it's ethereal and it can get us at any moment, it will.

if we start believing in the signs we're getting and understanding there's help on the way, not the 24-hour test that doesn't seem to appear, not the ten days before you get the test, we've seen that. not the clusters when we listen to a guy like miles white, these are not idle people they've been there, they've experienced what it's like to have, as dr. fauci say, every single patient die for about a decade my faith is in these people. my faith in covid is i see you, covid. we'll get you. if you don't start thinking like that, we'll lose the war if we hate or like the president or try to figure out who the heck knows what we're doing, take heart take heart in alex gorsky. take heart in miles white and robert ford, these guys are the best in the country. i think they're being treated as

they don't know what they're doing, but we can defeat this. >> we need that kind of testing you're talking about if we're ever going to hope to get behavior back to anything like it once was. i'm sure you have a lot of the conversations that i do with business leaders trying to understand what the world will be like when we're sort of not even on the other side of this, but let's call it in the summer or after the summer, we hope are heap going to be willing to assemble and go to conferences will they be getting in the middle seat of an airplane or going to sports tournaments? so many concerts will they want to show up together in the office if you don't have that testing or the ability to know quickly who has it and who doesn't, it's hard to imagine a world that returns to what it once was until we have a vaccine.

>> you are getting a pmi number last night, let's say the chinese are lying their heads off, which would be a complete, you know, in keeping with everything else they've done, maybe the pmi is 45, not 52. i count the number of cups drunk at starbucks, that makes sense i look at yum china. again, i discount everything from the chinese i discount it because i think they've been capitalists against us and don't deserve anything from us, besides they got the ppe. they got us, they got us because they make masks, they make gowns. we gave that up in 1990 when we decided to take 900,000 seamstresses and turn them into people who were hapless because we moved everything off shore. i'm worried. i'm trying to get people involved in government to say what happens on april 2nd when

you don't pay your mortgage? what happens to these mortgage edifices this is another one, it's not going to be convoluted as what we saw in 2007 to 2009, because we're not as stupid as we were then or reckless, but i don't know what happens in the chain of mortgage command. i have a feeling the government doesn't either when you put a face on covid by saying we have got you, we know whether you have beaten us in five minutes or not,then you have a cohort of people, young people who are not just jack asses giving it to their parents and grandparents but able to go out. it's a start >> it's a necessary start if we're going to imagine that things will get back i don't talk to many people anymore who expect a v-shaped recovery >> no. no that's wall street talk. >> the market is telling us one thing perhaps that's more optimistic, when you have conversations, i don't know, most executives i'm talking to are preparing for a brick wall, focused on liquidity and what they need to do.

they don't know what's on the other side of this tats makie that's making them nervous >> i'll tell you what's on the other side, costco, walmart, amazon >> that's all retail that's it. kroger the supermarket chains >> i now look at a company and i say show me the balance sheet. show me the balance sheet. we have carnival cruise, they cut the dividend, trying to raise capital. the markets have been open to raising capital for a lot of companies that you and i both know you would not lend capital to them unless you made an agreement where you were trying to make money off of a revolver and it comes back to haunt you i don't want to present myself as an optimist about business. i don't see anything good. you have the small business loan that you can apply for, the 1099 people are confused. next week you will get unemployment i'm just saying forget the financial world, i think there's a chance that what i regard in central park of new york looks a

lot like when you pull back and that battle of atlantis scene in "gone with the wind" and that's a tragedy. maybe we can put an end to what looks like to me a moment where the south lost the civil war and you can see what happened. i think that's a sign that we lost the war against covid, but there's just a battle. the next level is won by scientists at rejogeneron or gilead, abbott, j & j, somebody comes up with an anti-viral. we have to get people off the ventilators out of the hospitals and then figure out the mortgages. >> that's a key point. we saw the chinese build that hospital in january, january early february and now it's our turn. it shouldn't come as a surprise. we can talk about the lack of preparation or planning maybe another time >> exactly exactly. hey, there's plenty of time to investigate what happened to uss

indianapolis and why all those sailors died that's the way i look at it. that was some big mistake by the navy plenty of time you can have a board of inquiry. let's win first! that's how i feel. >> you mentioned some of the debt offering going on and the furloughs we got from the likes of macy's and now the gap. for more on that we'll get to courtney reagan. >> good morning to you we actually have some new news and protocols out of walmart in order to help keep associates safe, so walmart has decided that they're going to start doing temperature checks for their associates first they'll start at the fulfillment centers and distribution centers then move to the hot spots, the areas of the country where we've seen the outbreak be the most intense they're asking associates to take their temperatures at home and following this 6, 20, 100 rule six feet of social distancing, 20-secondhand washing, and the

temperature of 100 means you need to stay home. they expanded their protocols for what that means for sick leave and paid time off in order to keep their associates and the public safer they're installing plexiglass shields. they're looking at doing one-way aisles for customers to make that flow a bit easier as far as limiting the number of people in the stores, they say it's a delicate balance. we want to make sure individuals are able to get the food and essentials that they need. we have reduced our hours to have more appropriate and thorough cleaning. we also need to make sure people get what they need so we'll have to follow this on an hour by hour case by case basis, and one store and one location for walmart might look different than the protocols taken in another store because

of this. they're also looking to procure masks and gloves for associates but say they're stressing this will be voluntary. if an associate would feel more comfortable serving customers while wearing a mask and gloves, they're traying ing ttrying to available. not the n95 masks, but they're trying to get enough masks walmart saying if we needed enough masks, we would need 7 million every week back to you. >> how does this contrast with the amazon employees who feel nervous going to work and walking out? >> that's a good point we've seen some walk-outs, strike-outs, sick-outs with amazon at the fulfillment center in staten island and whole foods locations that amazon owns we've seen upset workers from ins instacart saying they're not getting the right protective

materials. so walmart is taking this a step further. they're not requg the masks and gloves, but they're offering it if associates want it so some of these companies are asking for similar protections >> courtney reagan, we'll talk to you in a little while fascinating information the way shopping in this country will change probably forever. cmeiatake a quickomrcl break. don't go away. >>i'm searching for info on options trading, and look, it feels like i'm just wasting time. wasted time is wasted opportunity. >>exactly. that's why td ameritrade designed a first-of-its-kind, personalized education center. see, you just >>oh, this is easy. yeah, and that's >>oh, just what i need. courses on options trading, webcasts, tutorials. yeah. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. >>so it's like my streaming service. well exactly. well except now, you're binge learning.

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welcome back time for a mad dash. we throw it a long way, jim, over to you. what do we have? >> we've got this incredible confluence of events going on with home and they're -- they're mccormack mccormack also has a food services business, that's bad for them they had a tough quarter china because they were shut down now china is open for business maybe china comes back all in all what it comes out to is people will sell the story. i think that's probably a mistake. i think that this cooking at home, it could be bigger than we think. then mccormack will adjust when it comes to what i regard as being the food service that is such a good business it is just to show you how fraught, when you look at a

company that's supposed to be a recession-proof stock, a lot of companies have done a lot of different things that made it so they're no longer just one kind of thing going into food service, it's an akichilles heel, and not everything is as it looks. >> got it. let's get a quick commercial break in here. we have the opening bell about 13 mutines away. "squawk on the street" is coming right back

welcome back let's get to meg tirrell for an update on the coronavirus. >> some bright spots to tell you about. signs across the country that the social distancing measures are having an impact in seattle, the public health department there putting out two reports yesterday saying that data shows that there was a reduction in movement in early march for anonamized mobility data and the transmission rate of the virus has dropped. in san francisco, reports that some hospitals are seeing a leveling off in cases.

and a company using digital thermometers shows fooefers are declining. the lighter areas are decreasing levels of fever across the country and public health experts are saying this could be a leading indicator of potential cases of covid-19. around here in new york, governor cuomo citing a slowing in the rate of icu admissions. they are still going up, we're still in a bad place here, but he's saying as of yesterday, that doubling is happening every six days from previously every two. scott gottlieb saying he thinks new york may be potentially approaching a peak in new cases, that he expects to see late next week or in the next ten days so we're still in a tough place, but approaching that but he does say states like

florida and texas are in bad spots, and those will start accelerating you can see that here in this data showing the trajectories after the first 100 cases. gottlieb on "squawk" this morning saying the texas data probably not picking up the level of concern in that state right now. so social distancing is working but we need to stick with it >> we'll put q1 to bed today, final day of the quarter plenty of news regarding ford, auto sales, zoom, domino's pizza, oil we'll get to all of it after the break.

welcome back to "squawk on the street" on this tuesday morning. jim, as we watch the futures here, i'm looking at a chart this morning out of evercore for food sales for the week ending march 22nd conagra, 100% growth year-on-year stunning pantry loading numbers.

>> i love this quarter they are on tonight. why do i love it people are back in the center aisle. they understand those of us that have to go to the supermarket, there's things you want to have. you want to have frozen meals are up in terms of share, doing just terrific. hot cocoa, meat sacks, pumpkin seeds, microwave popcorn, that's fun. then i know david will be excited about this david, chef boy-r-dee is off the charts before this i'm sure you probably liked pasta i don't know where you got your pasta. >> i had moved on, but i reintroduced it to our diet. my children are getting used to what sustained me through my 20s. we are getting the cans now. they were out of the beef

ravioli. >> david, you're so short-sighted. the great thing about chef boyardee, it's your children's children this is literally -- chef boyard boyardee, this stuff is aging with pleasure. >> i saved for you this can of chef boyardee. guard it with your life, pass it on >> hunt's tomato >> here's a piece of land! >> the numbers are really good >> jim >> what? numbers are good >> i'd be curious to see what conagra says dominos, they have all these different factors at play. shelter in place, pantry loading, school closures, no live sports, and with all of that, they're like the impact is just impossible to quantify. credit suisse has a good story

about out performance. the stay-at-home economy is in flux like you wouldn't believe plus you have millennials who change their mind every 42 ke , seconds, we like dominos, don't like it. we like popcorn, chef boyardee dominos was on a roll. a little bit of a setback now. when we talk about what happens in the new world, how many of the pizza places can afford their rent, electricity and insurance? the mom and pops versus dominos? we will have to deal with fewer players. they may not be the players you want i like the tomato pie you can get without cheese you should put the yello >> i'm hoping that a lot of the mom and pops can survive the sba loans are getting into

plac place. >> did you try to apply to one >> i haven't >> you have to have a relationship with an existing bank a lot of it is coming through the banks themselves the sba program is moving forward. that's significant that's important you have to keep your employees in order to have the interest rate or the loan forgiven. >> you just cut a check for the next three weeks i have to admit, it's a painful check. it's interesting to pay people not to work. in europe the government does. here, we do. >> right and in europe they're making payments directly to people. >> europe, you get a raise from the government here, we have to figure out if we have enough money to pay -- i'm fortunate enough, i don't want people to say what a jerk fortunate enough to have the means to pay the payroll, but when people start looking at it, i'm sure people will say i'm going to close i don't want to pay the rent for nothing and the electric for

nothing. >> interesting -- on that front, kfc today says they'll grant franchisees 60 days grace period on current royalties we'll start to see that a lot in the quick service foods. >> yes >> on that same subject, yum did raise 600 million bucks in the high yield market. the junk market. companies are figuring out ways to get what they need. the credit markets are providing liquidity here, it would seem. they did pay -- yum paid 7.75% yield for 2025 bonds >> 7.75? >> yeah. >> according to reuters. >> that's hideous. >> ugly. >> holy cow. rh looking for some money. what i loved, nicole miller, she

comes out and has a piece about chipotle saying they understand foodborne illness and secondly, piper, they have a great balance sheet. we're in good shape with them. [ bell rings ] >> final opening bell of q1, as you know by now the dow is on track for the worst q1 ever. not the worst quarter, but the worst q1 jim, mcconnell is on the tape this morning speaking of aid, asked about stimulus 4.0 says we'll need to wait and see if a fourth bill is needed pelosi did say it would potentially focus on recovery as we've been saying the last couple of days, mortgage markets, state governments, oversight budgets, things like that >> it's time to do a 5$500 billion bond offering. that's not facetious i think a lot of people would buy a war bond this is not a liberty bond that

got everybody sick when they did a parade in philadelphia >> mcconnell said pandemic-related treasury bonds are an interesting idea according to a radio interview >> this is one where i think the treasury secretary will convene with the president and get this done quickly there's no harm in trying. david was saying something about the sba. i got the application for the federal loan for the restaurant from chase >> yep >> so it is happening in record time i would press the bet if i were treasury and say, who wants to buy a part of a 5$500 billion wr bond against covid >> i would love it >> you have relationships already with your bank that's how it's coming >> how did you know? >> does the nail salon, pizza place, on and on, do they have

the same relationships >> no. >> if you're a restaurant, how do you guarantee you're going to keep your people on during this period that becomes difficult, too. doesn't it >> everybody is so thrilled to have a job you're paying them when they're not working. >> my point is you don't know what your staffing levels will be on the other side of this, do you? i guess the idea is you just do it >> i do have some competitive instinct i figure if we open this on our block, people will say, you know what those guys were patriots it may turn out to be a word that we think will be thinking about. who bit the bullet i'm biting the bullet on both my joints, when it comes out on the other side, we're good for it. >> it is a gamble. my brother is a small business owner with his wife. they're having to essentially make the gamble that the loan will come through in the end and in the meantime provide

certainty for workers. >> it is a gamble. i don't like gambling. but, yeah, i'm taking the gamble that's because if i get hurt, carl, i'm so fortunate most people if they take the gamble and it doesn't working oh, my, terrible >> i did want to talk about activity or lack thereof when it comes to companies buying other companies. we're seeing a lot of things let's start with sprint and t mobile that deal expected to close tomorrow they are going to fund 23 billion in loans the banks, they're not particularly happy about doing it they'll be there to do it. this deal will close not quite two years since they announced it having gone through so many different around and above and beyond hurdles, let's call it. they're getting there. we'll see what the future holds for that combination softbank, of course, may choose to sell some sprint shares more

quickly than had been anticipated. but we're keeping an eye on both of those, what the landscape will look like california parkuc, they're pull down on the loans, the plan is to close on other fronts, you have exalta, this is a company i was watching for some time didn't look like they would get to a deal that many rumored would have been a large go-private transaction meandered around and then it came to life ppg and clayton dublier were close to getting something done, and then the impact of the virus hits this morning axalta says in the best interest of shareholders at this time, the dislocation of the markets caused by the coronavirus pandemic, the board has determined that it's in the best interests of axalta to not

go through with the deal then you have deals that are existing where other buyers will try to get out delphi getting bought, the company drilled down 500 million in revolving credit facility to best position it in current market conditions, and then they were told they breached the agreement they had because they drew down the revolving credit facility without our prior written consent. delphi saying we disagree with that that's what's going on in m&a. some deals closing, other deals not happening that were potentially close, and deals in place, people trying to get you the of them if they can figure out a way. >> axalta good company for paint, autos autos are so bad, david. when you think about what -- >> jim, i don't know if you heard bob lutz this morning on

"squawk," maybe it's a function of his experience, he talked about how auto companies were closed during world war ii for four years his point was that auto parts, the secondary market continues to work. there's still 70% of the dealer market that is operating i would say he's net constructive >> that's positive you don't want to do one of those mergers, but if youare more positive, you buy magna, they have a lot of things going for them it's the net winner in the group. if you avoided everything auto, and bob lutz knows auto better than anyone, it's all relative housing has a chance the problem with auto is that

you see mary barra, how many ventilators does she have? don't look at the ford common stock, that's not fair >> they're going to make 50,000 ventilators over the next 100 days 50,000 >> let's count them. >> 30,000 a month as needed. that's in conjunction with ge's health care unit >> ge, how are they doing? how is ge doing? >> there's some challenges one would expect aircraft listen, i would love to hear from mr. culp. when did we sit down with him? not that long ago. yet the world has changed. >> i like what they're doing i do think that boeing, a lot of good things behind the scenes happened with boeing had a big move airlines, we're hearing about the treasury secretary getting involved buying stakes

a lot of these things we forget about. one thing you need when you have airplanes is passengers. >> yeah. did you see the numbers from yesterday? 154,000 total passengers courtesy of phil lebeau and megan reider >> there was a last flight out of madrid a couple days ago. my daughter teaches english there. okay, who wants to go get sick but get to america, right? >> yeah. how about someone coughs, you could have a space suit, doesn't matter someone coughs on the plane, i think you're like -- you're on a carnival cruise plane. >> all the airlines are up right now. >> okay. sure okay great. great. that's sustainable >> i guess you're not a believer at this point? >> mnuchin gives them loans. if they take equity, they're fine i keep coming back to this

notion of demand who has demand? costco, walmart has demand but you got to get on a plane? david early on in the show you said, jim, are you going to want to go to a game? do you want to go -- i flew back from grenada with a woman who had a cold, i said to my wife i'll be sick as a dog for the next seven days. i was sick as a dog but it was eight days we do not want to get really close. you ever look at a map where all the cruises are, the crews are on them? this is another untold story of when we look back we'll say there are these things with 4,000 people on them, the air circulated badly, but the companies are good it was an inexpensive vacation what about malls getting back to retail when are people going to be willing to do that right now, obviously, my commute -- everybody is setting personal records on the time of their commutes, that's one

benefit. passing empty malls because they're closed now when they reopen, simon property group, he waited all that time to buy something, he finally decided to buy taubman, he must be hitting himself every day >> 33 million in distributions he's had david, it's now -- it's now spelled like my philadelphia accent, it's m-a-u-l >> yeah, they've been mauled, simon property, of course. what are peoples willingness to go and shop again? not to mention what retailers will be in position to pay their rent how is that forbearance going to work for the mall owners and operators? >> i don't know. there was a hole in my sweat sock this morning when i worked out. i looked at amazon, i bought six pair or something. i thought it will be there tomorrow i will leave the box out for three days because of covid. i'll have it out there baking,

bring it in. instead of going to a scotore, bought socks, they're cheaper. i'm a proud member of prime. the only problem is the three-day rule it's like the five-second rule >> yeah. we're all dealing with that. carl >> guys, dow is down 127 let's get to bob pisani. good morning >> good morning. happy tuesday. so, we're looking at the quarter ending, looking at the second worst quarter ever, at least if we have the same numbers as yesterday. dow down 18% for the quarter a lot of people are eager to get out of the quarter a lot of hopes for pension rebalancing. i've seen some enormous numbers. 1$139 billion when you see how some of the treasuries have done this year compared to everything else, it's not a surprise. people think there will be significant numbers moving around energy is up transports are up. david mentioned it because the airlines are up. tech is down but not as much as

the rest of the market banks still down today they really did not participate in yesterday's rally that was a little disconcerting. a lot of regional banks were down on the day, even jpmorgan eked out a small gain. guidance, we're used to companies withdrawing guidance the guys mentioned dominos mccormack, too mkc, talking about uncertainties due to the coronavirus outbreak. that's a spice company a little odd no surprise, restoration hardware, they withdrew their guidance conagra said their guidance would be better than expected. in the some things never change category, british tobacco, not seeing any major impact on their business due to the coronavirus. so we're in the final day of the quarter. you want to just see the market internals change, things calm down a bit yesterday. a little better today. the vix was the lowest since

march 11th the intraday swings were 4.5%. that's ridiculously big still but better than 6%, 7%, 8% that we saw the last few weeks. today, about a 60-point swing in the s&p from high to low that's better than 100 quieting down a little bit the quarter to date, down 18%. when the s&p is down 18% and long data treasuries are up 22%, that's called rebalancing. that's why folks are helpful it may help out here. corporates are basically flat. a lot of buying in lqd the fed will be buying corporate treasury etfs. high yield down about 11%. the global markets, generally down in the high teens so the u.s. and japan down 18% china never dropped as much as everybody else they're down 10% europe is a lot worse, italy is the epicenter of the problems there, down about 25%. it's been a lousy three months you do not see this often.

three months in a row, the first three months all down. january, february, march that march number will change. you get the point. it doesn't happen. in fact, since the modern s&p came in in 1957, there's been five times that's actually happened where the first three months of the year are down. the last time that happened was in 2008,s another year we would rather forget about. of those five years, four of the five ended down, the s&p ended down 12% thanks to my friends at data trek who do all of this number crunching for us you can see, four of the five years down about 12% what happens next? there seems to be two camps floating around out there. as for down april, that is only happened twice in '73 and '74, january, february, march and april down two camps trying to battle out about april. one is the shallow pullback rally camp you get a shallow pullback in the next few weeks and rally on hopes that the total numbers will peak.

then the other camp says we'll test the lows and go down. in the middle of the month, then we'll test the low camp at the end of april back to you. >> all right bob, thank you very much looking forward to chicago pmi and some confidence numbers at the top of the hour. let's get to rick santelli this morning. hi, rick >> your timing is impeccable 47.8 47.8 is our chicago purchasing manager survey, pmi, that is a march read that following 49.0. should not be unexpected that we are getting these numbers. we are continuing to see the effects of coronavirus on manufacturing globally everything outside of a two-year note yield is at historic

forever low yields i would like to stick with a year-to-date of five year. why did i pick fives i heard david talking about yum brands 7.75 on the five-year. the reason it's 37 basis points, so about 7 over, you add it up,.75 we started this year at 1.69 the first print of all the fixed income treasuries and sovereigns were the high-yields of the year 1.69 for fives ten-year settled at 1.92 we are getting so close to the all-time yield close bunds settled last year at minus 18 after one quarter, we continue to see the bund narrowed the difference between the ten-year rates and the european rate, but we continue to see the u.s. seems to be getting ahead especially on the coronavirus as many in the ecb zone,

commonwealth there have not been able to necessarily amass some of the attacks like the central banks is here have to that end, the new fed repo facility that started at 8:30 eastern, you could see the effects on the dollar index. the dollar index came down making it easier to procure dollars overseas by creating these facilities on shore over there for the economies that need the dollars and those repot lines the most let's look at a month to date of the dollar index unbelievable in the month of march we are down below 95, we zoomed up almost to 103, which we have not seen since january of 2017. here we sit making another stab at 100 which is rare enough and turned down a bit as that fed announcement is ahead at 8:30 eastern. >> rick, thank you rick santelli.

carl, i know you had something you wanted to ask jim about as we get into trading here with the s&p down about 1%. >> yeah, guys. jim, i wonder, we've talked so much this week about rebalancing, end of quarter, end of month, forced selling, i wonder if for those investors who have tried not to check in on their 401(k) accounts, once they start getting notices in the mail, how does that change sentiment? >> it's almost always been negative people say i knew that darned asset class wasn't worth touching i knew i shouldn't have put faith in it. i knew it was dysfunctional, i'll put my money out and put it in a cd. when they do that, they get little return. because of the notion of index funds and how we're all brainwashed into thinking there's nothing but index funds out there, people won't be like this is my chance. i saw david ricks on "squawk on the street," he seemed to know what he's doing, i'll buy some of that. or look at cigna and say mr.

cordani did a good job they don't do that they just say i'm getting killed in my index fund, which had every single bad stock in it along with the good stocks so i'll buy whatever doesn't give me the return that's been the process. that's how the asset class has been debased over and over and over again that's how you have so few people in equities the idea you can pick a stock and have the yield is quaint it's a shame, it's the way you can make money now >> we have not talked about oil prices when you talk about yield, i immediately think of chevron, something along those lines. you said this sector was uninvestable you said that as a result of something we used to talk about all the time back in the good old days, esg, and what was the growing pressure on so many different allocators of assets, not to allocate to fossil fuel companies. >> right >> given the move in oil and

chevron's yield of 7%, does it remain uninvestable? >> the numbers on the board are -- let's just say they're out of touch west texas midland price, $10 a barrel as of this morning. you're talking about mymex, 20 -- permian again, 10 bucks. you look on the screen, we could put up the prices. >> there it is >> that is for may and that's fine if you're looking for permian at 20 you're getting $10 for it which is why scott sheffield also on bloomberg this morning talking ten companies make it, 64 don't no consolidation because of the debt if you're buying one of the stocks today, remember that unless the government, if president trump calls president putin and they make a deal, even if they do that, there's still

again no demand. it's a demand problem. keep coming back to the idea, we think our policymakers should do something. they can't create demand oil is still in the ground the prices you're seeing, west texas midland is $10 a barrel. that's the actual price for our oil companies, and nobody makes money there. nobody so we can look at those big posted numbers and you can buy the stocks all you want but in the end, david, occidental, it's not the old ok diessentialccidet conservative company. >> we discussed that many times. they took a huge risk and hasn't worked out >> well, david, sometimes you just get had there's mike wirth bidding against it >> well, jim, what do we make of the headlines regarding trump and putin and the agreement to have talks at a ministerial

stage, no date set and b of a with a note out reiterating this point that the impact of oil on capex and employment will be huge and the consumer offset will not be huge in this case. >> exactly i know the president, i remember interviewing him in 2009 he was saying what's important is we bust opec. you have this opec plus thing going on russia needs prices higher they may have overdone it. they shot themselves in the foot you can have a blip up in oil, but then again, where are we going to put our oil there's no place to store it, and driving is down gigantically so we always have to think of the demand side. i mean look, i've been thinking about the demand side when it comes to buildings there's so many people that are working at home, i think some companies are saying you know what maybe we don't need a big building anymore so i mean, when we come out on the other side, i think we're going to be surprised how few people go back to work we love it we love the companionship. i love it. we don't need the space we used

to and certainly aren't going to drive as much as we used to. >> so the impact on office space, gasoline consumption. >> big >> you name it >> yep >> how about the furlough of macy's yesterday, what does that mean my father worked for gimball's, wiped out by macy's. i bear no malice toward all, toward none. sorry, got that lincoln thing wrong. behaviors are going to change potentially for a long period of time >> yes and your no shopping, you won. >> i won, yeah, unfortunately, i guess n many ways. listen, we're going to take a quick commercial break paypal ceo dan schulman will join us in a few minutes hear what he has to say. stay with us

how happy will you be to put q1 to bed? look at the s&p quarter-to-date losers, apacapache, norwegian, noble, royal caribbean, carnival down 75% plus. when we come back after the break, paypal's ceo dan schulman on the plan to help small businesses impacted by the rovis. st wh us at&t has connected us every day for over 100 years.

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all right, let's get to stop

trading with jim >> too often i mention costco as a winner i often thought about walmart as a winner, maybe target wells fargo is saying dollar general is a big beneficiary of government spending, the checks go to you and dollar general and that does work i underestimate dg so well, doing better than its compadre, dollar tree. >> jim, it's interesting coming off of the heels of the interview and now dollar general you're hitting on all cylinder this is week >> thank you i have to tell you, this conagra, this wholesale change in how we shop at the supermarket is really incredible because we want it we want it -- we hated the pantry we wanted it fresh now if it's fresh, we want to know how many people touched it. if it's in a can, holy cow, we're the only one that touches it that's what we want. >> do you remember, do you

remember the complaints we had about old line campbell's soup and nelson pelz and the viability legacy of consumer packaged goods >> give me a can i've been doing the thing you turn it and turn it and open it and there it is! and no one's touched it! there's no covid-19, something that was canned five years ago how about frozen food? whoa >> and cowan on spirits, spirit sales up 25% for the most recent four-week period, all spirits were up but bourbon, tequila, gin were the relative outperformers. >> well, geez, gin during -- how do you like that used to be a post-memorial day drink, isn't that incredible i got to get that bar open again. get the tests going, i can crush it tequila, we'll raise the price we're going to gouge >> good tuesday morning,

everybody. i'm carl quintanilla with sara eisen, jim cramer, david faber, coming to you live from different locations this tuesday morning. dow is down 181 as we wrap up this final day of q1 one of the things of flipping the calendar page will be maybe, i don't know, we've had so many companies pull guidance, including some others today, but we'll see if we get some refreshers from companies once they report. let's get consumer confidence with rick. >> yes, march consumer confidence from the conference board, 120.0, which equals the read we had in july of 2017 at 120.0, to get a lower number, you have to go to, well, the month before june of 2017, when it was 117.3. that was the headline number let's go through expectations. last look was 108.1, they dropped to 88.2. present situation, 167.7, from 169.3. so the numbers obviously have

taken a hit. some thought we'd take a bigger hit, whether it was on this number or chicago pmi, which was the weakest only since the beginning of the year, but all things considered, we know these numbers will continue to deteriorate. sara, back to you. >> all right, rick santelli, rick, thank you. taking a look at the markets today, we're seeing declines on this final day of the first quarter, worst quarter since the depths of the financial crisis but not the magnitude of declines that we have seen during the quarter over the last month in particular. dow is down 160 right now. s&p down about 0.8%. one of the big calls today that's making the rounds, goldman sachs on its new economic forecast. have you seen this, jim, down 34% on gdp in the second quarter. are we prepared to see a number like that? >> oh, sara, come on, give us the other part give us the v.

>> fine, they say q3 will rebound to 19% so yes that's good i find -- you guys have been talking about this whole return to work, return to normal. >> yes >> the assumption fromecono economists it comes in q3. i know you're glued to the numbers out of europe, things appear to be befter, the outbreak is slowing and yet the country is talking about extending the lockdown into may. the question is how to get out of all of this >> remember, it's two countries in italy, there's the north and that's been decimated but looks like it's running through but as it goes south, it's going to ravage again i think it could be worse down south. it's poor. i guess my hope is that we really have real testing, and that all of us, rather than say you know what? i'm going to get tested and go to walmart, which they couldn't do think about the rose garden a couple weeks ago, the president said we've got cvs, walgreens, we have walmart, target. it didn't really work.

it was something like a village. if we get an avid test, what happens is we're really going to know who is healthy and who can go back to work and who needs to stay at home but i think one thing we're discovering, sara, i think is disappointing is, the people who are dying in new york are younger than the people who are dying in italy i know that there was a sense the italian population is old, but the population is dying here, is young, and the doctors are kind of confounded by that it's not good. >> yes no, and it's scary, and i think -- >> it is scary >> that's why the treatments, the anti-virals that you've been talking about and following are so important to get that data from gilead, and the question i have is how widely they're being used the fda yesterday cleared hyd hydrochloroquine and z-pak, more of that and the supply of how

many medications are there out there so we don't have to see numbers in new york like more than 900 deaths in a day >> i know, hydroxy, the approval has met with mixed views i know there are people who it's become a political issue there's a sense that if you're in favor of president trump, you want to use it and if you're not, you're a democrat it's not like that >> yes >> it's not like at all. doctors don't want to give awe rit mia. >> my understanding is it is being used by many hospitals and you can factor that into your fatality rate. maybe it is of some use or not but it is in use already, to sara's point, and and that's kind of where we are in terms of whether it's actually helping, you can see in the numbers >> the silence, we don't have any doctor coming out and saying -- >> no, it's not the answer the way a real anti-viral is from the likes of gilead, whether it's emery university in conjunction with ridgeback,

wayne holliman we had on last week, whether it's regeneron, that's serious anti-virals to be able to be given orally or some other way and given very early in the disease, so that you don't end up in the hospital at all. >> hydroxy is supposed to be given early. look, i've -- we want every single thing that can work to work, right? it's just that if you design it for this particular illness, it does better. remember what happens is there is a series of things that go including a clot in your lungs, and we've got roche saying we have a drug that works for the clot in the head maybe off the shelf we can do it for the lungs but they're not optimistic nobody's really optimistic what my father had ards, the disease that kills you when your lungs fill, i remember the doctor, my father's doctor said listen, the narrative's changed. first time i heard "the narrative. since then i hear that a lot with earnings. he has ards.

i said let's give him an ards drug they said we don't have an ards drug no, just give him the drug there's nothing. we have to be cognizant that covid is very smart and it bub w burrows within your loungs >> what i learned on avid, the interview, talking about numbers of tests and 50,000 a day is not enough we need to test and test and test some people are looking at iceland, not just south korea, as a test case they tested more than 6% of their population, and they were able to keep their schools and their businesses open, because what they found were so many asymptomatic cases >> there it is >> to isolate the positive cases they had few icu visits. they have a tiny population but to put that effort into testing can show some different results in terms of locking down economies.

>> right see, sara, this is what has to happen this is why testing is far more important than people realize. you can put people back to work if you know there's a lot of asymptomatics. you also can keep the younger people away from the older people because the younger people, dr. fauci said this, are killing older people, or else he wouldn't have been in the bizarre interview with mark zuckerberg and facebook, truly bizarre. whoa, that was bizarre he did at the end say listen, younger people, please knock it off. dr. fauci went wihere the youngr people are abbott labs the test kit providers, thermo fisher, roche, those were taking too long we love the companies and they're doing millions but abbott is the one that can turn it around and make sure you don't hear the horror stories, i took the test, it was ten days everybody has horror stories about the test, those are about to end except initially in hospitals but i think the isolating example is great i mean, it provides some hope

versus say the milan example or this madrid example. madrid is out of control if anyone has a line on madrid, let me know, woo >> no. spain is tough looking at a jpmorgan note this morning trying to quantify the magnitude of the degree italy does lift some of these lockdowns, very hard modeling work to do, jim. in the meantime, we do have companies that are doing what they can for small business here in this country. i know you've got that for us. >> yeah, one of the things that i really love are the companies that have either taken the pledge not to lay people off, or actually in the nitty gritty and understanding exactly what it means to deal with a small business that frankly cannot keep up because there's just not a lot of demand. that's why i'm thrilled that we've got dan schulman, paypal's ceo. he has a novel plan i haven't seen dan and i were talking about forbearance earlier. dan, welcome to the show forbearance is what this plan's about. tell me about it

>> yeah, hey, jim, nice to hear your voice thanks for having me on. yeah, we're trying to do a number of different things for small businesses, as are many companies, but we're doing five different things first of all, we are basically allowing customers to request to defer repayments on any of their business loans and cash advances, at no additional cost. we're waiving charge-back fees for merchants, if customers file a dispute with their credit card issuer b er through at least thd of april we're waiving fees if businesses want to instantly withdraw money, you know, for things like payroll, other things to either bank account, a mastercard, visa debit card again, at least through the end of april we're doubling the window in which merchants can respond to a

customer dispute, and in partnership with mastercard, we're doubling the amount of instant cash back rewards on eligible purchases with the paypal business debit card so we're basically trying to give small businesses the flexibility to deal with the issues that they have right now, and in addition, jim, as you know, we're one of the largest providers of working capital for small businesses and we're going to continue to provide that where we can >> you know, dan, it's funny when i read this, i want people to understand, we often think about earnings per share and how hard a company works to try to make the numbers every one of these is not positive for your earnings per share and it's pretty clear, you don't give a damn. you're trying to do what's right. >> well, look, jim, i mean, this country and around the globe, we're going through you know, waters that are uncharted for all of us, and i think this is a

time where companies that have a degree of financial strength, and paypal certainly has that, we've got a strong balance sheet, we've got a strong business model, our products and services are needed more than ever right now, digital payments are booming. people are, you know, at home, they're doing more and more e-commerce, they're doing more and more charitable giving through platforms like paypal, and venmo, and this is a time where we need to step up, and we need to give it is the right thing to go do, and it's the right thing to go do for customers, but let's not forget about our employees as well this is the right thing to step up, to make sure that they know that we've got their back, that we don't intend to do any layoffs as a result of covid-19, that if they're sick, we pay them, if an office closes, we pay them, and we really need to

be sure that we have their health and their financial security at heart, as we deal with this crisis right now, and so i think this is a multipronged approach that business leaders and companies around the globe need to approach and not as a business as usual >> now, dan, i've been dealing with a lot of small businesses, typically i deal with businesses your size. here is something they often say. i don't know how to get a hold of the company because i really don't understand what it means for me i know it's good for me, but i can't figure it out. what happens i mean, there are a lot of small businesses don't have a full time accountant on them. they do their own payroll and trying to figure out what does this mean? i want it. what do you tell them? >> yes so we've tried to react to all of the uncertainty that's out in the environment right now by

just creating innovative different ways of helping either consumers or small businesses to be able to connect to our products and services. think about it, you were talking about this earlier in the program. you have everybody at home right now, and a lot of older adults at home right now who may not be as familiar with technology, like paypal or venmo, to be able to send money to loved ones, to be able to purchase things from home, so we've created tutorials for them, if they come to our website, that are just simple and easy to understand we've attempted as best we can to create self-service tools, to be able to answer all of the calls that are coming in to our

customer service agents around the world, because there is a huge demand for our products right now. we're seeing our net new actives grow quite substantially in the past several weeks, and we need to be there for our customers. we need to be there for our employees, and we need to be there for all of the people who are putting themselves out on the line for all of us you know, whether that be nurses and doctors or the cashiers, you know, grocery stores and pharmacies, there are a lot of heroes out there that are doing everything and i just feel like doing our part in that is the expected and the right thing to do >> you mentioned that you're not alone. i think it's important to point out, what a great company mastercard is, aju banga, the paypal debit mastercard

something that makes me want to go out and spend very little incentive to spend from april 1 to april 30th this one sounds like it's for real >> really, r.j. and i were just texting before coming on to your show right now, talking about not just that, but other things that we can do together and i spoke with al kelly just the other day, with steve sqerry at american express, and we were all trying to come together to think about ways that we can help the country, that we can work with the government for instance, this c.a.r.e.s. act that was just passed, we're deeply engaged with agencies across d.c. right now, because we have an infrastructure in place to get money to people quickly. >> um-hum. >> we have a unique ability to provide small businesses with financing, and that's so

critical right now, and if you think about it, jim, 25% of americans are outside the financial system they don't have access to basic services like a bank account, and you know, many of our discussions with government agencies are focusing on providing that trusted access to digital payments for those americans, and this is a place where paypal and venmo can shine, and we want to work hand in hand with governments and with other private sector companies to do anything that we can to help here we obviously don't have the answer for everything, by far and away, but each of us can do our part, and i think if we do that, that makes a difference, at least some small difference >> dan, you and i are lost in this, the no layoff pledge which is so important, trying to get everyone else to take it, too, mutual friend, mark benihoff, i

got to call my friend, i know his mom, wife, geez, but one of the things we were talking about is business is the greatest force for change, and when i hear this, and what al kelly from visa, what squerrey from american express is doing, what you're doing i think this is unprecedented. i don't know if people realize business is the leader in trying to help as opposed to a follower dan, things have changed, haven't they >> well, i do think that businesses have an obligation maybe even a moral obligation to step up and try to do the right thing. i think that starts with their employees, taking care of their employees, making sure that their employees are financially healthy, and that is something that i think every ceo needs to look at carefully. and i think we have an

obligation to work with the public sector, in fact, earlier this week mark benihoff were working with one of the governors in the u.s. of different ways of working together so that public/private sector coming together to think about innovative ways to be helpful, this is an era where i think your brands need to stand for more than just making money. they need to have a purpose around them. we need to obviously take care of our shareholders, but i think the way we do that best is by taking care of our employees, taking care of our customers, ping up and doing the right thing. that's i think at least how we build businesses that are enduring in an economy that can be strong and a strong economy

is helpful for everybody, and we have to play our part in that. >> you're a great leader, dan, thank you. you've taught me you've taught so many people who business should mean, versus the old days when business was very zero sum thank you so much for what you're doing, dan schulman,ceo of paypal. i have the ceo of agco, food shane is vital pa lowalto, nikes. arora, bad guys are having a field day and conagra, take david into the frozen food and canned aisle and he says i cannot believe it, this is like what my grandparents used to buy. i think that's the last time he's focused on the kitchen. thank you guys i knowi i'll be back. carl, ara, business has never been in good health unless they were called on by the president.

i like this. these guys are saying you know what let's do something good. i wish business weren't so hated in the country >> we're seeing it across business we do a segment on "closing bell" every day on good news on the day. we have so many examples of companies stepping up, just this morning. >> i love that >> they're going to produce medical equipment. yes, this is, that whole purpose that dan schulman just described the stakeholder capitalism we talked so much about before this whole meltdown is being put to the test right now >> totally >> businesses are being called on >> sara, may i just say for the record, i'm glad you got rid of that ridiculous painting that was on your right side i can focus much more on what you're saying. >> once you started insulting it, i had to change it up. jim, thank you >> the lamp is that peer one thi pier one thing going there >> we're in unprecedented times here i'm trying to get a good signal which as you know i've had some trouble doing here

see you later. by the way, stocks made a turn-around, we're higher across all the three major averages the s&p 500 up 0.4%. as we head to break the worst performing stocks on the dow for the first quarter, by far t lose than 50% in the last three months you've alsan there as oil prices collapsed, and along with industrials, united technology down 34% over the quarter. we'll take a quick commercial break. stay with us

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welcome back with stocks higher on the session, time for etf spotlight. the vaneck semiconductor, won track for its worst month since may of last year it's higher by 1.3% and on pace for its worst quarterly performance since 2018 and a third negative month in a row for the first time since august 2015, david, but there are signs of life. lately over the last few sessions a lot of people are looking at the rebound in semis and wondering if it is a signal of a broader economic and financial recovery here happening in the markets they're the first step obviously in the supply chain. they touch so many different industries and are often a leading indicator. >> yep, indeed thank you, sara. also coming back to something we mentioned in the first hour of "squawk on the street," that is the t-mobile and sprint are poised to close a

deal that has been almost two years in the making, it was april 27th of 2018 when the two companies announced their intent to get together. what a long, strange trip it's been, but they are there now the last hurdle for the deal appeared to be getting approval from the public utility commission of california for them to get together why it's taken so long or what delayed the california puc is not completely clear but the two companies appear to have said forget it, we're not going to bother why are they able to do that they filed a motion to withdraw their application to the california public utility commission, is that apparently they completed switching all of their wire line customers to voice-over-ip and registered in california as a voice-over-ip provider in that state you're not required to hold a certificate of public convenience and necessity if you actually are a

voice-over-ip provider because it's considered an information service, which is not actually subject to the california public utility commission or common carrier regulation so by going to voip, they are no longer, they say, under the jurisdiction of the california public utility commission. therefore, they withdraw the application and are able to close a deal just to remind people the ratio, if you are a non-softbank, if you're not softbank the ratio is still the same, 0.10256 that equates to 9.75 sprint shares for each t-mobile share. february 20th about a week or so after they got approval from the new york court to go ahead softbank said we'll change our ratio, brought the price down a bit for t-mobile but that is the ratio, still talking about 6 billion in run rate synergies and carl and sara, we will have three main wireless carriers as of conceivably the end of business tomorrow. back to you. >> yeah, nice to get some old

school corporate news, david, first time in a while. dow has gone positive, not by much. see if we can hang on to some gains this morngni we'll take a quick break and be back in just a moment. when you look at the critical issues facing our world, what do you see? we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy.

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welcome back, everyone and good morning here's what's happening at this hour confirmed coronavirus infections have risen above 800,000 worldwide, the death toll is now over 39,000. just moments at go nih director

anthony fauci told cnn he is starting to see "glimmers" that social distancing is working in the u.s. the cases continue to rise in what is still a "very dangerous situation. italy, the country with the most deaths, held a moment of silence to honor those who have died from the pandemic. rome's mayor virginia roggi held a ceremony in an empty square saying the deaths are a wound that unites our country. the tsa is out with stark numbers showing the decline in air travel, just 154,000 passengers went through tsa checkpoints yesterday, a decrease of 93% from the 2.3 million who traveled on the same day last year. texas enforcing its first full day of travel restrictions on people coming from louisiana. governor greg abbott ordered anyone entering from louisiana must self-isolate for 14 days. and on a lighter note, an optimistic one, an old-time form of entertainment is seeing a revival. this drive-in movie theater in

essen germany is bringing a big audience only two adults plus children are allowed per car. but it's in big demand as always for more on the coronavirus coverage here at cnbc, go to cnbc.com sara, what is old is new again in these unbelievable circumstances. >> campbell soup cans. >> exactly >> now the movie drive-throughs. sue, thank you >> you got it. faced with poor quality virus data, wall street is turning to what's known as alternative sources to find out what's going on with the economy, steve liesman is looking to a few of them and the big goldman sachs call on gdp and unemployment steve, good morning. >> yes, just massive and the two stories are kind of linked, sara, because some of this alternative data sin forming goldman's forecast and its outlook. the data that's going to come out is going to be lagging, not suited for dealing with a shock

that's unexpected like this. they are using alternative data. before i get there, let me show you this goldman sachs downgrade, that they were talking about or economic gdp downgrade that sara was talking about in the last half hour. first of all, one of the bigger surprises to me is how much weakness they see even in the first quarter which we're ending today down 9% and that's down from 6% on the prior forecast. now down another ten percentage points here for the second quarter, and there's the rebound, which jimmy was asking about, that "v" but it's not so much of a "v." it's 19% rebound, which is better than it had been, but you see for the whole year, you don't make it up, because it's not a perfect "v." so you still end up being down 6% look, these numbers are not perfect. they're not even close goldman says they're subject to huge error but we're watching this to see is the outlook getting worse or getting better and how much rebound is expected goldman is saying in its commentary the anecdotal

evidence and the sky-high jobless claims numbers show an even bigger output and especially labor market collapse than we had anticipated. oempb on the other hand, both monetary and fiscal policy are easing dramatically further which will tend to contain these second-round effects and add to growth down the road." so some positive aspects from the stimulus expected there. so how does goldman do this? what are other economists doing? they put together among other things a consumer activity impact index they're looking at, railroad loadings and transportation and hotels and sporting events and you can see they're tracking this for china and the u.s. together which doesn't give you the greatest outlook here, because it shows the steep drop here in the u.s., very much mirroring the steep drop in china, and you can see that long, slow road back over at least a two or three-month period for china the question is whether we can avoid that really l-looking rebound and come up with more of

a "v." another thing, td securities looking at city mapper data and tracking mobility across six u.s. states. you can see it's crashed down and it remains relatively flat why do we look at this it's not surprising, the reason we look at it is because we want to see any early signs we can find of a pick-up in that mobility this right now is probably a good sign, because we're watching for containment of the virus, this decline in mobility is something tells us that those shelter in place rules are being followed across the country. so sara, we continue to monitor this these numbers are almost certainly not right, but as they perhaps the data improves and the outlook improves, we might get an early read that might be better than the virus tracking data that's out there from the medical community. sara >> actually steve, i'll take it. we are watching indicators like that airline capacity is one. we have some breaking news on southwest, we'll get to phil

lebeau phil >> carl, southwest airlines is cutting its flight schedule from may 3rd to june 5th, cutting it down by 40%. basically they're going from 3,700 flights per weekday down to 2,000 flights per weekday from may 3rd through june 5th, all but six cities that currently take in southwest flights where they fly out of, they're going to see dramatic reductions the bottom line is this, carl. and you saw the d.o.t. or the tsa numbers earlier today, just, what, 154,000 people cleared by the tsa yesterday, compared to 2.36 million on the same day last year, and these numbers tell you, they're not seeing any demand in may and it's not just southwest. it's all airlines. so they are going to continue cutting their flights as much as possible while at the same time maintaining service as much as possible, because that's one of the requirements for the government bailout >> phil, thanks.

we'll watch that with your help our phil lebeau on southwest jeff solomon from cowan i think on the phone good to see you. thanks for the time. >> it's good to be here. nice to see you, carl. >> nice to see you on skype. i'd love to get your thoughts on the market action specifically yesterday and today, and get your sense of how much rebalancing is at work here and then we can talk a little bit in a moment about how we start getting some metrics to look at overall equity valuations. >> yeah, i think the activity we've seen particularly over the last week has largely been a lot of index rebalancing it feels like a bear market rally. we've seen those, they tend to be fast and furious and certainly for the three days last week of tuesday, wednesday and thursday, kind of felt that way. but i would definitely say a lot of this is index rebalancing people asset allocators and

pension funds as they come out of fixed income instruments and equities based on where the numbers shake out. i think you're seeing a little bit of that as we come into the end of the quarter >> and is it your sense that valuation models are starting to get enough input to where they are somewhat reliable on where the market is right now? >> yes, so i think if you're a fundamental buyer, or seller of equities, the first two weeks of this information was just people selling to get liquid. now it's slowed down a little bit in terms of the pace of information and so people can start to think about how to value equities, build discounted cash flow models, put 2020 in a box, or maybe the first half of 2020 in a box, and then ultimately figure out how your five-year cash flow also look beginning in 2021 and once people are fundamental, they can begin to decide whether or not the stocks they own are cheap or expensive relative to where they're trading. you got to be nimble so markets

will overreact to the upside and the downside, but if you have a pretty good idea what you think is likely to happen as you build your economic models for companies, the five-year, it won't matter much in a five-year model, and so that's where i see people starting to do a lot of fundamental work >> part of what scared a lot of investors, jeff, over the quarter was what we were starting to see in the bond market, and on that front, it does appear there's good news, that the fed has been mostly successful in terms of reopening the junk bond market after the longest dry spell since 2002008 just curious, how you guys at cowen are seeing the reaction from the fed moves and how long you expect that to last, and whether you think we're in the clear. >> so i mean it's hard to call an all clear here because i think so much of it depends on how the virus plays out over time we're seeing better functioning in the credit markets since the fed actions. i would say with the exception of commercial mortgage-backed

securities, those don't seem to be trading as well but that may be a fundamental reason. in terms of like other corporate credit, much better, we have a lot of investor grade deals that came to market last week and i think the first high-yield market, first high-yield deals in the market today, it will be wider than i think what people thought it might be, but at least it's getting done and that's a really healthy sign as corporate balance sheets, people become less worried about corporate balance sheets going forward. again, it was really important for the fed to maintain liquidity and maintain some sort of normal market function outside of equities because that takes the pressure off of investors who simply need to selleck wits in orequities >> you're joining us from your home i assume that's your home, and i would guess many of your colleagues who sit on trading desks and people across wall street who sit on trading desks are working from home. give me your take on how you

think it's all working at this point, you know, it's something the likes of which i assume we never thought we'd actually see. >> yes, we build these business continuity programs mostly around single events we didn't think we'd be doing this on a continuous basis, and that was a big change, from our standpoint of cowen, it's working just fine, actually. we have been doing record volumes in our trading business for most of the month, and everybody's working from home, literally everybody's working from home. we might have, you know, less than a done people globally in the office and that's only because people want to be in the office it's been a remarkable experience testing and implementing these plans and so you know, i think it will be a while before at least in new york people get back to the office, but it won't change the way we're doing business at cowen. we've been doing org meetings for ipos and follow-ons. we'll see a bunch of folks hit the market first in biotech and tools and diagnostics over the

next few days if markets continue to hold together here and we're doing all of that activity remotely. >> right >> and zoom has been a huge help here as obviously everybody knows. >> jeff, as the ceo of an organization, do you think once we're through this, will people work differently will you view it differently in terms of people wanting to work from home? >> yeah, i think we'll view it differently. listen, we're social animals, and so i do think there is a desire on the part of people to congregate and there's a creativity that happens when we are all together in person, but i certainly think that, like bankers doing red eyes to get to meetings, to string together four or five different cities i think people will rethink whether or not that's valuable and the change there frankly is not so much on the part of our organization but our clients' willingness to engage with us over distance media. i think the big fear is if you did a conference call or a video call with a client, did that mean you cared less about them,

and now people are like, wow, we should do these video conferences because it's a lot more efficient i personally am probably saving two hours a day on my commute and i'm working much more efficiently. i think we'll see changes in behavior it's too early to say what those will be but everybody seems comfortable to work remotely at least for the near term. >> yes, you can stay in your pajama pants all day long. jeff, how do you think about the structural issues that our economy is facing, like work from home, and how to put that an investment thesis which stocks will you look at in how we change how we live? >> yes, so long health care, short real estate is probably not a bad trade. we obviously have been very involved in the health care market for a long time i certainly think that there's some real healthy dynamics to deliverables both from a digital

health standpoint and biotechnology standpoint, big pharma standpoint, that dynamic probably changes pretty dramatically i think if you're long commercial real estate, that's something that's going to be challenging for folks. i think certainly people, companies will be looking at their, whether or not they need a physical footprint that they have currently or can they have remote working which i think now everybody feels like they can do, and so that's something that i would say changes, but anything that's long bandwidth, anything that's long telecommunications infrastructure, those kinds of things i think have a lot of legs certainly anybody that's optimizing networks, things like that, so tech and health care probably big winners here. i would say commercial real estate probably not so much. >> finally, jeff, just to follow on to david's question how the future is going to be different for our friends who are in banking is it more disruptive long-term for those who worked on a trading floor or more

disruptive for the investment banker who used to spend four days of the week on the road >> you know, i don't know. i think again, we like to gather everybody together on the trading floor because it creates an energy and a buzz and long-term people will return to trading floors because there is an element of connectivity and being in person that's really critical to being able to deliver for clients on a consistent base pice today it's not required, there's so much flow but over time makes sense to have people congregate on trading floors. research analysts working remote anyway on the road all the time. productivity probably increases significantly again because our client connectivity and clients willingness to use technologies like the one that we're on has increased overnight, everybody's

willing to do it but they have to, and that probably doesn't change >> jeff, great stuff, really helpful for us in these times where we're searching for information and color. we'll see you soon, thanks jeff solomon >> good to see you guys. stay safe. >> you too, jeff when we return, how brooks brothers is helping combat the virus outbreak we'll talk to the ceo. let's get a quick check on the markets. we have seen a turn-around dow is up about 76 points, wiping out an earlier decline of almost 300 in early trade. s&p is up a quarter of a percent, just some small modest gains, if we hold them, fifth time in six days the dow and the s&p would be up. we'll take a quick commercial eak. stay with us here on our breaking news coverage on cnbc at&t has connected us every day for over 100 years.

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as the financial fallout of coronavirus continues, steven roche says it's the behavioral impact on consumer activity that will have a lasting impact on the economy. for more on that, tradingnation.cnbc.com more "squawk on the street" coming up.

welcome back major retailers are attempting to do their part during the coronavirus crisis in this country by changing duties now making medical supplies, one of the retailers is brooks brothers, they'll transition from making shirts to making masks. the company will make up to 150,000 surgical masks per day joining us now on the cnbc phone

line is the company's ceo claudio del vecchio. thank you for joining us we love highlighting these stories. talk about transitioning from making shirts and pants to making surgical masks. how difficult was that, and how are you able to get 150,000 out per day? >> first, thank you for having me this is kind of in the dna of brooks brothers. next week, we are celebrating our 202nd birthday, and i think through many of those years we had to go through a lot of challenges we had a couple of world wars, and the depression and we came out of all of those things pretty well, thanks to the support of our customer that's why we wanted to do again, go out and support our customer in the community and support us for so many years now we have a factory, one of

the few retailers in america that has their own factories in america, so we employ about 800 people in those factories. we'll take the majority of those people and bring it back to the factories. of course, you know, we are taking tremendous measures to make sure they stay safe, but we have about 500 of those we think we can confidently make about 150,000 masks a day. we'll have to partner with other people to produce the material we need to make those, but we take a leap of faith we don't have an order to support all of that but as we made the announcement yesterday we are getting those lined up right now. >> so just to be clear, claudio, these are not the n-95 masks, but they are intended for health

care workers, so how do you do that how do you make sure they're safe and up to standards for hospital grade >> well, we are in the process to get fda approval, in fact, to be able to be considered a surgical mask. we will start this week training the people and -- by using our cotton normally that we use to make shirts and those will now be non-surgical masks. first we have to make masks for our own people to make sure they stay safe, but we already have material in-house and more delivered every day that actually will allow us to make an n-95 kind of mask of course we can also increase the production with some more investment in machinery. we will be very close -- >> where are the masks --

>> yes, go ahead. >> how are you determining where the masks go and how are you charging for them? how are you making the economics work >> well well, do this in response to the call interest the white hou -- from the white house and other states and local leaders that came to us and said, if we could do something about it. we're going to order from basically all of these we would like to have some kind of a charity element out of this we have a lot of charity we work already or new ones that i think we can support with this effort as well. there is not just one customer you know, we're set ups because of the business we normally do to ship basically everywhere i think the most important thing right now is get the fda

approval because that will definitely open a lot of the facilities from shipping at that point. >> well, you mentioned the business that you normally do. we've been getting more announcements by the day of furloughs in the retail industry obviously so many stores are closed in this country what's going to happen to stores like brooks brothers when this is all over? well, we take one thing at a time right now honestly our priority is the health and safety is of our people and our customers it's -- of course we have to work very hard and we have to make a lot of very hard decisions, but those decisions are temporary. we really don't know the situation is moving by the day. we don't know when the stores are going to be able to reopen of course we do rely on the support of our customers to do a lot and support the people still

in our offices, more correctly home still working remotely, and really for our customer the only way they can support us today is shop on-line with us we know this support, we always got it before from the customer and as long as the customer keeps supporting us we'll be able to deliver the help to our own people and the customers now what is going to happen to retail that's a very big question that it's going to be hard. it depends on how long this is going on and the customer is going to react to -- how are they going to feel after this is done i believe after spending so much time home, people are probably going to look for an opportunity to go out and go back to the things that they have always done and maybe appreciate it a little more, that relationship

that my establishment had with sales people and around the country and the stores maybe the challenge will be the on-line. we're prepared do it either way. we're going to follow the customer's needs, but i will -- i don't want to think that retail is done in fact, i think this might make people rethink the on-line and what's really happening to the planet with all those boxes going around and what's happening to our relationships, you know i think, you know, it can go either way >> claudio dell vecchio, good luck to you and thank you for what you're doing transitioning the factories to make surgical masks. >> thank you very much >> brooks brothers >> we'll take a quick break here are we going to mention the

president's tweet? if we have a moment, sara, the president does write with interest rates for the u.s. being at zero this is the time to do our decade's long-awaited infrastructure bill. it should be very big and bold, $2 trillion and focused solely on jobs and rebuilding the once great infrastructure of our country, phase four. something that bill ackman just wrote a very long thread about, sara, just the other day >> well, it makes sense. the u.s. government can borrow for nothing. we've been talking about getting infrastructure built in this country, perhaps as ackman has said, you can to infrastructure building of roads and bridges and tunnels while social distancing the question is what is phase four going to look like? can it help the cruise lines and retail and so many industries left behind and how that gets folded in with this idea of an infrastructure spend the fact that the president and members of congress is talking about it is giving the market some hope they will continue to

provide relief as our economy remains virtually shutdown. >> yeah. you would have to imagine the political appetite, maybe we'll check in with eamon or kayla later on, the political appetite would be more pronounced than the past three years and how quickly you could. >>le that -- spool that up and be divided among states and take advantage of the warmer weather which is not going to last forever. you would want to get a lot done in the summer. >> obviously safety would be first and foremost priority for any workers and outlining what it's going to look like. infrastructure was with always one of the things ta was going to get bipartisan approval at least there was hope for that the republicans talked about it. how is it orchestrated, right. you don't want democrats saying we're going to have a slush fund just to determine infrastructure projects and republicans will say government can't be in charge of that, we need to get in the private sector.

the sausage making will begin in washington but potentially a good start as the market looks towards stimulus and relief and more money spent by the government where the private sector is and consumer is basically -- >> yeah. we're watching movement in the united rental and material stocks we've been watching -- >> that trade -- >> watching infrastructure for a long time now. to dominic chu and a sector sort >> good morning, carl and sara stocks well off their lows of the day so far energy and tech among the best performers so far in terms of sebtss while real estate is lagging as you can see there a variety of the laggers here, apartment reits like essex and udr alongside health care and health peek, but we are seeing relative outperformance in the more retail-focused names, some of which have been so badly beaten up and battered as shoppers stay home and concerns mount over ability to pay their rent simon property, regency centers

among the outperformers in the broader sector today watch real estate. i will send it downtown to you in your respective homes back home to you. >> thank you very much, dom. good tuesday morning i'm carl quintanilla with morgan brennan and jon fortt coming from separate locations as we practice social distancing here at cnbc. pretty stable market session, jon, well off of the highs of the morning, but well off the lows >> yeah. indeed s&p about flat the dow and nasdaq hanging in there. let's start with that market action steve from wolfe research joins us now steve, good morning. >> good morning, how are you >> i'm doing pretty well, steve, and taking a look at some of your analysis of the tech market right now, you think it's fared better than things overall what do you think is going to determine how thes