>> i think he wishes he were dressed differently. we're going to have to wash that robe we got to keep the hygiene going here this 150 point dow day feels somehow comfortable. so much nicer than some of the wild swings we've had, but you never know what could come up. thanks so much, we have an action packed hour or two coming your way as we stand, we are down 0.75% on the s&p 500. three sectors are higher led by energy real estate at the bottom of the pile >> yeah, coming up, we're going to talk to lor et ta midwester, the head of the cleveland federal reserve. we're going to talk about the unprecedented action the federal reserve has taken so far calm the market and ease those blockages we've seen in the

credit market. that's coming up in the next hour we're also going to talk to matt shay about the pain the pain out there with retailers we've heard about furloughs from gap to macy's. what kind of unemployment statistics are we going to be talking about for the biggest private sector employer in the united states and do they qualify for relief in the new congressional package. let's focus on the big stories we're watching in this final hour of trade. bob pisani joins us with a look at the quarter mike has a deeper dive on the s&p 500 today. steve has more on the fed's latest move and what the economic signals are telling us. as we get ready to close out the quarter. boy, good riddance >> and good riddance, exactly.

treasuries up and rebalancing. buy stocks, sell bonds might help a little bit towards the close. corporate investment grade flat and high yield down. reminding us that in a recession, high yield tends to act. i want to show you the charts here boeing, have you seen anything go to 150? that's boeing. down 50% so far this quarter all the oil stocks have essentially claptsed 40% decline for chevron. banks have collapsed the banks down 40% this month. jpmorgan down 30%. the worry, banks may get stiffed with the mortgages that everybody is not willing to pay and they're the ones that hold if mortgages this quarter microsoft up 1.5%

so what's going to happen in april. there's a rally that's going to correspond with the peak in cases and detds and people are hopeful, hopeful that might be towards the end of april then there's the other crowd the people who are the l shaped crowd. they say we'll have a test of lows you want to watch the february 23rd lows. >> mentioned also just how the markets are functioning. the markets just so low, so fast that they had a -- we saw the new york stock exchange close and go a all electronic in it's more than 200 history.

there's something different and how people are doing it -- >> remember the flash crash a number of years ago? the sec instituted new requirements for the exchanges to essentially test the systems and stress test them it was calls regsci. basically said we can't have things breaking down and we're seeing the proof of that generally, the plumbing is holding up well and generally people trading from home, what i hear, it's okay. there was concerns initially about whether the internal web functionings could handle trading levels, but seems to be adapting on that level, i give the markets a very grahigh grade we've had unprecedented stress, volume and volatility and while there have been some issues in bond etfs, it's fairly minor overall, i think things are functioning given the stress

level pretty well. >> bob pisani, thanks soft for that over to mike for a closer look at the mooves in the s&p 500. hey, mike. >> relatively mild decline for most of the day in s&p 500 underscores the fact that real treacherous feedback loop we were in during most of march is seemingly broken we had nasty down days on monday then bounces on tuesdays we haven't had this that week. i guess the take away, too, is that the market is holding most of last week's balance that would be the way to characterize it. two-year chart of the s&p. it's getting up to some levels where it's going to start to have tests for example where it fell off in march 12th so it's hanging in there up 20% or so off u the intraday lows good so far. but look at the relative

strength index we were oversold at the lows what does it mean? that you can still continue to rally and get nowhere near overheated for this movement it also means you've left behind those really stretched conditions that did allow that rally to surface finally, just looking within the market, it's st still the large consistent heavy cash flow earning big growth stocks that are earning here take a look at the qqq and software stocks are relative leaders. it was the case before the peak and that compares to the equal weighted s&p and small caps which have been left behind. so the market with credit markets somewhat cushioned, it seems like going for equity cash flows seems safer and taking investors to a lot of familiar places >> mike, the russell 2000's underu performance is stark to see give b b b how much it lagged on the way up i guess there's a couple of

factors to that. the age old point about what makes up a sector by market cap and heavy in energy and banks, which is of course been declining the most on the way down but also the fact that as you say, talking about cash flows, discretion marks overstrengthened balance sheets and the bigger stocks b tend to fair better in people's minds. >> less reliable and less stable cash flows and arguably, if people are trying to venn pture a guess as to what the world looks like when we get through this economic shutdown period, it's hard to see any way other than very, very large xoen companies honeymoon consolidating their advantage when we've had this long shutdown so i would not say that means the russell 2000 can't perform because it did get cheap on a relative basis we'll see ifthat matters, but it makes sense now that the market feel safest in going to those areas that seem sturdy enough to weather this period. >> will a new quarter or month

bring a change in mood or a change in trading sort of sentiment? has that, does that typically happen during times like this where we've seen acute stress? >> i would say we're going to get beyond the period where we'll get beyond the shadows that goes away presumably in the next couple of days. i don't think necessarily it's a change of mood i don't think a lot of big investors operate on a quarterly risk budget where they say okay, we're back to square one and we have a 00 score and we're going to start to run the more aggressive plays but i think we're going to get beyond this period like i was saying before of the real intense kind of highly compressed panicky activity and see if there can be more of a two way market, picking individual sectors and stocks and seeing if a base can develop out of this rally. >> all right, mike, we'll see you in just a bit. the federal reserve meantime tag

k new again today to cap off an unprecedented series of moves this quarter to steady the financial system steve liesman has the latest steve. >> yeah, another day, another program from the federal reserve. this bun, a new one. not one that created in the financial crisis this would be a ree poe program for foreign central banks. according to one analyst, some 170 foreign central banks will be able to bring u.s. treasuries to the new york fed and get that cash in a repo operation this should alleviate pressure in the market in order to raise cash it also can help the dollar funding markets out there, which would mean they won't have to go elsewhere to get dollars that they need and bob talked about the cushion. yeah credit markets may be providing cushion for more ordinary trade in the stock market and probably

the other way around stock market trade is a cushion for the credit market. still a long way to go from what i'm hearing about what's happening in credit markets. let me talk about the latest outlook on the growth forecast goldman sachs, you know, one upping that's already very bleak forecast looking for a 9% decline in the first quarter this was a quarter that before the crisis hit, we were looking for i don't know, 2% growth, 1.5% growth then the big story in the second quarter decline, now 34% compared to its prior forecast of 24% and there's a rebound in the third quarter, but none of it is enough neither of those is not enough to really help the year out which they see a decline on the year a lot of economists including gold mman turning to alternative day to to understand what's happen ng the economy because the official day is isn't going to cut it. here's an index developed by goldman sachs. consumer activity impact that you can see how it compares with what china did and the unfortunate comparison here is

if we do follow the route of china, these are early days for us probably in the first two weeks of the decline that china has been sort of going through with a very steady increase though still negative year over year comparisons that went on for probably two months now and they're not even close to the zero line on the consumer impact and sara, just a whole lot of other data out there now that economists are using to try to get a better picture, a better realtime picture of the economy. >> wondering what the latest thinking is around unploichlt we're going to get a key jobs number jobless claims after they were so dismal last week. where are the economists on just how bad it's going to look on jobs picture >> so i want to clarify, you asked me what the real numbers are going b to be or what the government's going to report because those are sort of two different numbers. >> maybe both. >> economists want to forecast, do they want to forecast what the government's going to say

because all indications are that the government will understate what's happening because of the time period. because of a bunch of seas seasonality. nothing nefarious. this jobs report on friday will not capture it what i'm hearing is that unemployment could eventually reach 10%. goldman sachs saying 15% i think you're going to get maybe two or three points. the problem with employment as you know, it's not just the layoffs. the employment number we get is a function of two variables. one is layoffs and hiring. and you don't have the hiring, but you will have the layoffs. in fact, i've seen surveys that hiring is really at all time lows so that double barrel impact is going to really bring those numbers down i just don't believe they'll be adequately captured in the data this time. >> steve, i just wanted to come back to what you were say iing about the fed at the top i know they've announced another

new measure today as you discussed, but i guess the pace of new measures that they've been announcing has at least slowed do you get the feeling now that they're having the moment to take a step back have a deep breath and make sure all of these different measures that they have announced over the course of the last month have been b properly implemented or working effectively in a way that i heard from a couple of the banks initially two, two and a half weeks ago, they love what they heard from the fed and that the fed was taking the right sorts of actions or announcing the rigsort of anchors, but the were underwater initially in terms of really influencing them >> i don't think there's been time for a breath at the federal reserve from anything i can gauge. you're right they have rolled these programs out faster by order of months than they did during the financial crisis now they benefitted. some of these programs were create they've also created new ones and they have had to tweak the ones they've rolled out. we've seen the willingness on the part of the fed to do that

but remember, congress just passed a massive spending bill that's going to send or create the possibility of the fed taking $450 billion from the treasury and creating entirely new programs where they've never gone before that could be have some $4 trillion of lending. you ain't seen nothing yet from what the fed is about to do. a similar order of magnitude what the sba is going to do. they did like $20 odd billion a year lending they've been tasked with a few hundred 50 billion the fed is going to wrap up their balance sheet could go as high as 9 or $10 trillion. >> certainly the risk teething problems as all this is administered thanks so much for that we are down by the way 1.4%. 300 points on the dow so that's a fresh session low. albeit still relatively small decline at one point 4% what we've been used to in recent weeks and months.

45 minutes left in the session after the break, the doctor known as the virus hunter who contracted coronavirus himself will join us to explain why he thinks half the world could possibly in a worst case scenario, be infected and atwh we can do to stop it he'll join us coming up next woman: my reputation was trashed online.

i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

we are lower across the board reversing earlier gains. the dow is down only 300 points. a move of 1.4%, which is small relative to the moves we've seen this quarter and this is the final trading day of the month of march and of the quarter. the worst one for stocks since the depth of the financial crisis s&p 500 down a little less than 1.5% let's check in on individual market movers. shares of domino's pizza lower by nearly 7% after announcing preliminary q1 results citing school closures and cancellations of live events they say u.s. same store sales grew just by just 1% domino's also withdrawing its guidance for 2020 due to the uncertainty around the

coronavirus outbreak teledoc lower. downgraded to hold from buy. the firm saying its forecasts are at the top end of guidance shares lower by 6.5% though it's been a big winner in this work from home trend. we've got breaking news out of washington on tariffs. kayla with the details >> the white house has decided to allow deferral for 90 days. the payment on certain tariffs on goods coming into the u.s. to alleviate some of the stress on the global economy one source tells me this could be announced by the president as soon as today, but the question remains exactly which products to which this will, this will pertain. now i'm told that advocates of those 232 and 301 tariffs related to steel and a aluminum dumping and china's intellectual property enfringement have been

lobbying the president to keep those in place and as a result, they say the tariff relief we are like ly to see will apply t tariffs on most favored nations under the world trade organization those are tariffs in place before the trump administration ramped up some of these disputes in the last couple of years but we'll see what the fine print of what the white house announces potentially as soon as today and what that means for importers of these goods. >> and any guidance on whether it was even considered to actually temporarily lift tariffs rather than just defer payments on places like china? >> well, all of those things have been under consideration, wilf they have been heavily and hotly discussed by the white house and economic team for the last serl weeks now. but one of the issues especially as it relates to those tear i haves on china is how to you put the jeanne back in bottle.

if you lift those, do you have an opportunity to put them back on to reinstate some of the leverage president trump created? i'm told behind close e ed door, that discussion was no, there's not a scenario where they could be put back on but they wanted to find relief in ore corners. this is a living, breathing debate >> keep us posted. we just hit a session low. down 1.8% on the s&p just under 40 minutes left of trade. now americans are getting set to enter a new month of social distancing, but just how well are the lockdown measures working? hi, meg. >> there are some glimmers this might be working in some places. that was the word dr. fauci used this morning on cnn. in seattle, two reports showing that mobility was reduced in march so people were moving around less and they saw a reduction in transmission of the virus. in san francisco where we saw

the earliest shelter in place orders, some hospitals are reporting cases are leveling off. in new york, governor cuomo saying yesterday the rate of admission into the icu is slowing and fevers are declining nationally now in new york, governor cuomo updating those numbers today on the icu admissions rate. they are still rising, but the rate, he said yesterday, had slowed from doubling every two days to now doubling every six days in terms of the fever data, it's showing across the united states, it's been on the decline in the past week they say that can be an indicator of what we're going to see happen with covid-19 cases potentially a couple of weeks down the line because of a lag in testing still guys, case numbers are rising dramatically incloud iud still in new york state. the peak might not come for weeks. also rising concerningly in florida and texas. which you can see here as well so we've still got a lot of work to do. >> thanks so much.

and do stick with us for this next interview our guest is a renowned virus hunter who advised the defense department during the sars epidemic he visited china this year to study coronavirus. self-quarantined in the united states on his return only to contract the virus having returned let's bring in dr. lipkin. thanks so much for joining us. we're reading some of the things you've said in recent weeks. you say this is pretty much the most trans missabl studied. what does that mean in terms of the number of people you expect to be infected across the world and united states? >> by that, i mean it's very easy to become exposed to and become infected with this virus. ironically, i traveled through china and came back and was quarantined. had no problems and now here in new york city, my hometown, i've

become infected through community transmission what this tells us is that this virus is going to spread dramatically across the globe. this might have been news six weeks ago. it's not now you've seen the evidence of it and as meg was just pointing out a moment ago, there's evidence to suggest that the social distancing we've all been pushing so hard is beginning to have an impact so while there's still many more cases that we anticipate to come, the rate of rise may be be coming to a shallow and that's a very good sign for us indeed and it may prevent us from having as many people infected as some of the bases, worst case scenario >> what was that like going from being you know an expert and studying the disease to actually being a patient yourself what was the experience? what were your symptoms and did you get any trial medication

>> it takes your breath away i don't know what else to say about it you cough. i had a, i didn't have any of the unusual sort of neurological symptoms people have talked about like loss of taste, smell, but i had a terrible headache. very weak. shortness of breath. at least briefly and a persist tent cough f that i still have so it's 12 days in and my voice is ab b normal and i'm still coughing and i don't have the usual energy level, but i did not require hospitalization and i'm grateful for that. >> so how will you know when it is safe for you to see other people there have been a lot of conflict iing data and reports about how long it takes even after a patient is asifr tommatic to shed the virus. >> we don't have clear guidel e

guidelines on this yet so most people are ak cementing a certain time frame and they say i've been afebruary rile and i'm not coughing an i did three of these symptoms now for a week. some people say 14 days and therefore it's safe for them to go back. i think people should be tested to make sure that they don't still have virus that could possibly spread. the fact that we detect the presence of virus using a diagnostic test in the nose based on a very sensitive moll eck lar essay is not the same as saying this infectious virus so part of the resernl we're doing is to figure out what the correlation is and to identify the very best practices for saying this person is safe to go back there are people who have antibodies who still have viral sequences if their nasal secretions >> want to bring in our resident expert on the topic and all things health care, meg. >> thanks so much. it's good to see you

you soupd bettsound better than did on saturday in the podcast that i heard you on this week. so i'm happy to hear that. i hope you're feeling better you've been treated with hydroxychloroquine there's been so much discussion on that especially from the president. do you feel like it helped you >> i know i have no idea i decided long ago that rather than treat myself as a patient, i treat other people and not treat myself so i had an infectious disease physician who suggested that this is what we should do. and therefore, that's what i did and i used the regiment r recommended by a colleague of mine in china. the only thing i can tell you for sure is when you take the loading dose of hydroxychloroquine, at least if you're me, you get lightheaded but it's whether or not it had any impact in the course of my illness, i will never know so it's very important we do the appropriate blinded trials so we

found out whether or not in fact it does have an impact this is particularly important, some of the drugs that people are talking about that may be toxic. this one also has some toxicity. not in everyone, but in some people it does >> you mentioned earlier how trans mithis is. i wonder whether in your opinion, there was a possible silver lining to take out of that many more people might already have it than perhaps the number of reported cases might suggest. maybe even have it as early as january or late last year. is that not the case is that too optimistic a view to have it's just that their symptoms are much more mild than perhaps you experienced? >> i like that speculation it's terrific. if you're right, that means we have fewer people to worry about. we won't really know until we start to use the antibody test that allows us to figure out

who's been infected who may not yet have come to the contact of health care authorities or public health. that work is just beginning and i think over the next coming weeks, we will know. this presuppose s however that w know something about how durable that immunity will be and the answer is we really don't. we don't know for certain, although i suspect this is the case, that once you've been infected, at least in the short-term, you can't be reinfected, be some people have disputed that and it's so early in the course of this outbreak that there's much we don't know. i think we are making enormous progress, much more rapidly than we did with sars but this is a larger threat to us to human kind than was sars because that as you know, burned out very quickly and this is not. this virus will be with us for a long time to come. until we have vaccines that prevent reinfection to prevent primary infection, to control this outbreak, i think we're

probably going to see this in a seasonal fashion in winter and fall and early spring and it's just going to ping-pong between the northern and southern hemispheres >> i mean that's pretty dire forecast so what do we do during that period have to social distance? have to isolate ourselves? how do you think the recommendations right now from the white house are working and what is that going to mean if we're not going to be fully okay until a vaccine comes, which could take a year to a year and a half >> i appreciate that it sounds like a dire projection, but i don't really see it that way if we continue on their current course we have much better capacity now for testing. we've demonstrated unequivocally that social distancing is is important. people are discuss iing the b

possibility now of wearing some sort of personal protective equipment, but some of the things we've taken for granted in the past will no longer pertain. the sorts, some of these cultural things we do, handshakes and kissing and so forth may change but i don't think that this is necessarily a bad thing. you could even say that you know this prevents us from having future pandemics, future outbreaks. one of the things we need to learn from this is that we have to invest in our public health infrastructure invest in our science. invest in global surveillance so things like this never happen again and that's something that you know, we're not thinking about right now. but we should be doing very soon if not now >> we're out of time before i let you go, where did the nickname the virus hunter come from? it sounds like it could be a new blockbuster matt damon movie >> it didn't come from me.

and but, you know, what can i say? my mother used to love it. >> thank you >> sorry >> success in tracking down more viruses and helpi ining us get . thank you very much as well. now we hit session lows during that sper view down about 400 point on the dow. 1.8% or so at the low. we're at 1.7% at the moment. mike, just quickly, what's your take with half an hour just 28 minutes left, what's take iing s lower here >> very mixed although i would say there was this sense out there that maybe we were just waiting for some kind of russia buying at the end of the quarter as everybody is talked about that very well broadcast expected pension rebalancing there was no real independeicate were going to get some kind of heavy bid along that seems to me it's just backsliding along those lines. i think it underscores the fact that we're in a trendless point here we're still below last thursday's closing highs, trying to figure out if pe weather need

to back fill after that rally, but so far, it's pretty mild conditions overall not really a real heavy high momentum sell off i wouldn't say. >> all right 28 minutes left of trade down 387 points. session lows for the dow new york state lawmakers are proposing an innovative approach to get more money in the pockets of citizens who need it most during the crisis. robert frank joins us with the details. robert >> state ledge islators pushing a bill that would be the first in the nation that would allow renters to cancel their rent payments for three months. it allows new yorkers who have lost any income due virus to cancel their rent for three months this is not delaying it's flat out canceling them so they would never owe small businesses woul also be eligible this presents a problem for landlords. so the bill solves that by allowing owners of apartments

and builds to cancel their mortgage payments for three months gnr admits this would pass the problem to the banks and mortgage lenders he says they could get help from the federal government and the fed. now governor cuomo he's opposed to this. he says his order to stop e vices for three months which he passed would help renters and solve the problem, but since that could lead to a rush of evictions this summer. this could be decided tonight because as of midnight tonight, the state fiscal year ends and the new york state sbugt due april 11st, tomorrow also, renters have to pay rent tomorrow back to you. >> thank you so much for that robert frank reporting there s&p down 1.6% breaking news on amazon. >> that's right. new york city mayor bill de blasio has ordered the human rights commissioner to

investigate amazon over a fired warehouse worker that would be chris smalls he's been on our program and he led the walkout yesterday at a staten island fulfillment centerment now amazon has given us a full statement. they say that mr. smalls received multiple warnings for violating social distancing guidelines, put the safety of others at risk they say he was found to have had close contact with a diagnosed associate with a confirmed case of covid-19 he was asked to remain home with pay for 14 days, but despite that, he came on site yesterday, march 30th and they say that further put the teams at risk. they say this was unacceptable and terminated him as a result of these multiple safety issues. now these comments from the mayor came on a press call today and he also said that the sheriff's office did an inspection of that facility to ensure that social distancing has been observed. i've heard in a lot of workers from that site and from others that say both social distancing

measures, they're not seeing them take place, but others say they are and they're really thankful for this job. back to you. >> thanks so much. we've got 25 minutes left of the session. down 1.7% so now off those lows we touched about 15 minutes ago. coming up, gary vaynerchuk say it's now more important than ever to innovate and here's a check in on bonds. treasury yields a mix. yield on the two-year hitting its lowest level since 2013. the ten-year note just below 0.7% our cnbc special coverage b will be right back. don't go anywhere.

welcome back taking a bit of a spill here off the worst lows of the session. there's the picture of the s&p 500. the only sector that's higher now the energy but just barely and energy is your worst performing sector of the month of march and the quarter for the quarter, energy stocks as a whole, down 52% also got health care just behind energy right now real estate and utilities are the worst performing sectors as bond yields tick up a bit. wilfr wilfred. >> time for a coronavirus update hi, sue. >> hello, everybody. here's what's happening at this hour new jersey now the nation's second hardest hit state, reports a total of 18,696 cases

and 267 fatalities governor murphy trying to reassure residents he fully realizes how frightening this time is is >> we're doing all that we can to ensure the safety of our 9 million member new jersey family we take your worries and your concerns to heart and frankly, they educate our decisions just as much as we rely on the facts and the science, we're in this together we will get through the together and we will move forward together >> and we're trying to look for bright spots and there is a bit of good news for drivers even if we're not going far these days the national average price for gas has dropped below $2 a gallon that's the lowest price in four years. further declines are expected as demand for gas remains low and also a oil as always, you can get more on the coronavirus coverage coming up in an hour on cnbc.com as well anytime back to you. >> sue, thank. it has been a wild month for the

market with the s&p 500 seeing its biggest daily loss at 12% and biggest daily gain of 9% so how should you have your portfolio positioned amid this volatility heading into april? joining us by phone is sebastian page his team oversees $360 billion in assets as of the end of last year mike with us as well. so sebastian, how should you position at this point after the crazy month and quarter we've had? >> well the biggest asset allocation question at the moment and perhaps the only asset allocation question that matters is how krisk on you want to be. stocks versus bounds in our asset allocation committee, as markets have been showing signs of panic, we're taking kron contrarian positions on the margin. so on the margin, we've been adding to risk

you know we face a major recession and economic economic heart attack if you will, but during every financial crisis there's a fair am of fear, panic and overreaction investors who stay the course or even better, take advantage of opportunities, will come out better on the other side to be clear, we're not trying to time the bottom, but we think we're closer to the the bottom than the top in risk assets. risk premium earnings yield relative to bond yield is now 80% higher than it was before they lost so if markets retrace, which is possible, you're see thag today, we'll be looking to add more on the margin to stocks important thing is that we need to bridge to get us through this crisis, which a major crisis and with an astonishing 10 trillion in one month in global monetary fiscal stimulus, we think we will get that bridge

>> sebastian, how are you calculating earnings yield at the moment given the the uncertainty? >> that's very hard to estimate forward earnings you want to first ge a lot of those positions haven't come through. so i would say if you have a wide confidence interval aborou that mat, i would say it's probably close to 14, 5. around 19 before the sell off. >> how do you think how much risk investors should be taking at point after what we just went through in the markets is. >> all the indicators if you want to slice the performance of the market and say what happens typically after the equity market goes down 25% what happens after you get a a

rally of at least 10% in the s&p in a given week. if you look beyond six or 12 months, historically it has pained to add risk at those levels when those conditions prevail. what's not as clear is is the near term. it's not really a bottom indicator. not really a sense of the worst has been b seen, but usually the market has, is in the process of overdiscounting something that's going to go for six, 12 months beyond that. i think the big question is the starting point and we did start at a point in january and february where equities were relatively expensive. sentiment was -- and it seemed like allocations were pretty high so it doesn't seem as if we are just adjusted fully and gotten a washed out market. so that's why i think the near term staticy if you looked further out typically, even if you get another big leg lower, usually doesn't last that long

when you get another panicked low, the market tends not to spend a ton of time in those conditions if that's what it would mean >> one of the ways you've been adding risk is buying credit talk us through trade. >> there's an opportunity for high yield right now if you look at data in history, you had 25 times when the spreads went above 900 basis points every time one year forward and the average return has been about 35%. the reason for that is that there's a huge liquidity premium priced in the spreads. so if you're a long-term investor, and you're willing to provide that eck quity, you'll paid for it. we're not taking a massive position into high yield, but now is the time to start adding. >> thank you for joining us. >> thank you >> 15 minutes left of trade. up next, we're going to bring

you uninterrupted coverage of the final minutes of f trade the dow is down more tn 30ha0 points going inside the market zone, next my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

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under 12 minutes left in the trading day, month and quarter now in the closing bell market zone commercial free coverage going into the close mike here as always to break down the crucial moments of the trading day and today, we've got steve weiss from short hills capital here as well >> with the broader markets on this the final day of the quarter. the dow's on pace for its largest first quarter loss ever with the index losing 23%. s&p 500 on pace for its worst first quarter since 1938 by more than 20% both indices on pace for their worst month since the financial crisis and worst overall quarter since 1987 mike, all sorts of statistics you could throw at this. of course the peak to trough decline. the most stock of them with the s&p 500 down u about 35% at that

point and significant bounce since then where do we stand overall in terms of the key levels you're watching down close to 2% now today's not looking as resilient as it was. >> no, not multiple key levels that this market has to prove it can get beyond i think we're still in that show me phase of whether the bounce off the lows was something that's the start of something or just a bit of a reflex i think there tends to be this prevailing view that we're not going to be able to continue to make upside progress without a churning around some more and i think there's an over fixuatiss sags on the day-to-day viral infection news ips opposed to just the broader financial and the fact whether we got sold out at those lows. i don't think you can make a high conviction call on short-term on the longer term, the history of years when you had three straight down months to start a

year is not good, but there have been so few of them that i don't know what the specific relevance of that stat is. >> david weiss, you say this is the first egalitarian market i have experienced in three decades. what does that mean? >> it means the same page. so you, if you take a look at what caused this market versus what caused other market declines, you've got something different. nobody knows anything anybody else in '08, in business over 30 years. if you were wall street insider, you got it you knew what was going on you may have been victim to it, but you knew it. here, you don't know anything that anybody else doesn't know you don't know how long the crisis is going to last. what it's going to do to the economy.

and the volatility in my view, it was appropriate to be down 35% i said that before it got there because the market was up in 2019 based purely upon mull principle expansion and the per sepg that we're going to return to growth. guess what we didn't return to growth so that had a move back the market to where it was at the end of o '18. so now we're going to turn around i think we'll probably go down towards the lows i put a will ta lot of money tof you're an experienced trader, this is one of the best markets you'll see generate on trades but you've got to be careful and use tight stops. >> well, jefferies is out with new note today saying that he thinks hedge funds are increasing risk like you just said, stephen n this volatile market environment sawing moves like the december

2018 sell off. the firm expects hedge fund to rotate back into tried and true holdings those stocks include boeing, amazon, alphabet, netflix. a lot of the faang names out there. you have a lot of these names as clients. what are you seeing about their ability and whether they want to take on risk in a way that goes back into tech stocks and tech darlings like faang. >> i've been around hedge fund industry for a long, long time worked for managed money for some of the best investors including in my fund ignore that. edge funds are smaller we just had somebody on that has an enormous amount of capital. hedge funds are the sort of i would say the buyer on the margin but those positions you point out are popular positions in every single portfolio so while it's interesting to look these hedge fund numbers, they're basically meaningless in terms of dictating the markets or dictating where those stocks

are going to go. so once again, i get it from all the prime brokers. jefferies happens to be my prime broker phenomenal firm. but it's just interesting cocktail talk. that's it. >> mike, i guess there might be smaller as a total amount of trading volumes going on in the mark market, but they have more leverage or tend to have more leverage than your average investor and that at times of stress can lead to accentuating t the dislocations we've seen and we have seen that even if it's calmed down since. >> the relevant take away for me is that we did see a couple f weeks ago that delev lichajing move by the way, i don't think we're talking about the typical long short hedge fund manager as a concentrated portfolio we're talk iing about systematic traders that lever up with equity index futures as well as individual stocks and one other strategies of that sort. they seem to have gotten sold

out toward the lows. that doesn't mean in my view, that they immediately then go and reexpand their leverage and start to buy the old stuff, but the problem does overtime provide a bit of volatility to see those old names perhaps try to revive again. so not sure it's a career playbook, but nothing else that you can say that that hedge fund cohort is no longer a source of kind of systematic mechanical pressure to the downside >> we have under five minutes. down 1.5%. eyre lines stocks outperforming the broader market today let's get to phil lebeau >> a little good news for an airline sector that continues to look for bottom when it comes to passenger demand how bad is it? take a look at the number of people screened by the tas

yesterday and compare that with the same day a year ago. it's down 94% and nobody's quite sure how low it will go. now we've got more airlines announcing more scheduled cuts today. so three big ones. southwest saying it will cut 40% of its flights for most of may across the united states spirit is planning to stop flights into laguardia, new york, hartford jet blue according to b cnbc.com, there's a memo saying they're going to cancel 80% of their new york city flights. we have reached out and have not heard back yet as you look at the airline stocks, keep in mind the d.o.t. was out with rules today and basically said to the airlines, look, if you want to trim your schedules so you have fewer flights going into fewer airports, tha a possibility. back to you. >> all right, thank you. number of so-called sin stocks are securing new credit lines amid the coronavirus pandemic.

frank holland has more at headquarters >> we'll start with imperial brands shares 12% hire after the company announced a new multicurrency $3.1 billion revolving credit facility that will provide the maker of cigarettes with financing through march of 2023. also today, british american toe back ko, the e cig announcing a $2.4 billion debt offering and plans to use that cash for general business purposes then two weeks ago, ab inbev drew down on saying the coronavirus would impact revenues by as much as 10% so just to give you a sense of their business here in the u.s. over the past few weeks, sales are higher sales of blue are down more than 50% year over year most recent ratings from fitch show inbev with the best outlook on repayment >> okay, thanks so much for that now zoom video which so many people are using as they work

from home is coming under fire for its data prifsy and security practices and we have the details for that hi, d. >> along with popularity as you know, shares are surged. they're up some 40% this month alone though taking a breather today. now with that popularity though has come some issues around security and privacy a term that you may be familiar with, hopefully by reputation only is zoom bombing that's when an unwelcomed user drops into a group discussion and broadcasts graphic pornography. now the fbi has even warned against this also the new york ag sent a letter to the company asking for more information about its security and privacy practices, is company tells us they have received a letter and they're happy to answer any questions. back to you. >> all right mike, two minutes left of trade. what are you see ng the market internals today as we have a minor sell off into the close compared to what we've seen late ly

>> yeah, it's fairly moderate. definitely to the downside if you look at up versus down volume, but not really a washout. so we're very much in tune with that idea of a soft market but not one that's rushing to the downside then look at high beta stocks haves versus low volatility. just sort of shows you the churning then the volatility index even with the market down, it's not much down. therefore you've had a little bit of bleeding away of volatility of the vix is again nudging a little bit lower still in the 50s >> mike, thanks very much for that we are right near the session lows on the dow. the low was 442. we're at 436 points. which is down almost 2%. so not great to see that the lows, but of course 2% decline relative to what we've seen in this crazy month, quarter, is not too bad. s&p down 1.7%. nasdaq outperform ss is down just about 1%.

energy is higher despite oil giving up some of its gains. it's at $20.30 at the moment oil is down a massive 66% for the quarter as a whole we are closing here. down 1.7% on the s&p 500 the dow down a little bit more 1.8% nasdaq, down 1%. sara, to you >> and that will do it the wrap for the worst first quarter for the dow jones industrial average ever. worst quarter for stocks since the depth of the financial crisis welcome back, everyone, if you're just joining us take a look at how we finished out the day. and the week and the month and the quarter. the dow closing lower by 413 points so just as session lows. took a spill there attempting to

go positive this morning, finishing lower by 1.85% the s&p 500 down 1.6%. as wilfred noted, the only sector that actually rose today was energy that was the hardest hit of course for the month of march and for the quarter as crude oil got pummelled and the nasdaq better today, down less than 1% as you can see and the russell 2000 index of small caps closing lower this was the underperformer basically of the quarter it closed lower left than the others, down about half a percent. worst month since the financial crisis, worst quarter since the crisis leaveses down 20%. coming up this hour, we're going to be joined by cleveland fed president to discuss the impact coronavirus is having on the economy and unemployment and the unprecedented steps that the fed is is taking to do something

about it wilfred. >> joining us to talk about the market day before that interview and this wild quarter, steve weiss. kathy wood from arc investment, nick colas and mike. mike, to come to you first of all on the session before we get perhaps more broadly to the quarter, there was f some pain out there i guess today. real estate, utilities down more than 3%. kw banks closing down 3.6%, not a small amount >> no, not at all. the market remains kind of in a show me state right now. i don't think it's necessarily proven much of anything except you've got a strong balance, which you're not going to sneeze at i think if it requires you to be open minded to say it could have been a pretty decent low a week ago monday. seemed like we had a crescendo of panic and all of the rest of

it but we haven't managed to see significant levels i do think the sluggish actions will have a little bit of backslide. pretty much work its way through and carrying over today. >> it's hard to take these kind of losses and how long, sharp moves in the market. not to mention the fear we have over our health and loved one's health and over what it's going to do to the economy and mark s markets. what would be your advice? >> so the toughest thing also is to see stocks that were like a facebook that was up over 200 down to 156 or whatever it closed today and not buy it. i have to applaud facebook earlier added to it, but it's tough to do it both ways because the market's been so conditioned

to buy dips. my view is if you haven't put money to work yet, don't you may not get a retest the lows, but april's going to be a tough month. t one thing to read these statements here and there that guidance has been withdrawn, but now we're going to really start to see the employment numbers, unemployment numbers, skyrocket even more so than last week. and we don't know what the permanent damage is. so i think you'll get opportunities. that's the thing about every market you always get another opportunity. so i would not put money in the market to work here. as a matter of fact, i've been derisking a little by. got up high on my exposure after being down low i'm at a comfortable level now and i'm waiting for more opportunity. >> nick, i mentioneded the banks and now they sold off told and of late. you've been looking at the expectation for the recession we're about to go into and how it compares to the worst case

scenario that the banks have had to go through in recent years. >> that's right. the fed stress test has been in place for years and they have a set protocol for estimating the worst case scenario. and the trouble with this, the events that we've had in the last month is that we came very close to hitting a bunch of the worst case scenarios very quickly. particularly in investment grade bond spreads and that's a big reason why the fed stepped in so quickly and helped limit the damage in that market. you know in terms of what the fed looks at on the stock market, they use the dow and their worst case scenario has the dow down about 11% below that monday low. so if you're looking for a level where the fed begins to be concerned about stocks in the same way they were worried about bonds, then that's the level to look at. it's around 16,000 on the dow. >> kathy, what have you guys been doing in the portfolio over these last few weeks and right

now. >> hi, sara. yes, we have actually been buying what we know and i've learned this over the last 30, 40 years is that during these times, innovation gains traction. solves problems. so weather been buying like to you, which is an online education company. huge potential when times get tough and consumers of businesses get afraid, they're willing to change the way they're doing things they want cheaper, faster, more productive more creative. they want solve their problems of course teledoc on the tell medicine side is a good example and has done very well

to you, we've just adobe a podcast with the ceo and we'll put that out tomorrow i believe. this is an unbelievable opportunity to help solve problems fboth for students and for the colleges >> we want to go to bob pisani for a closer look at the worst first quarter, bob, for the dow ever and it's more than 100 hf year history >> in its form in 1957, this first quarter u down 20% the worst first quarter since the modern s&p was created here. i just want to show you some of the down movers here boeing went from $330 to $97 to $150 that's not a typo. dow, a big global economy, packaging things like that down 46% all of exxon b emotional not bad. down 45% i'll show you some expiration

companies down 80% jpmorgan, all the banks didn't bounce even with the rallies there's concerns they're going to be stuck with the bills of everybody refusing to pay mortgages. that's a major overhang for the banks. only one company actually was up in the first quarter believe it or not. and that is microsoft and literally that was flat for the quarter. you can see some of the consumer names doing a little bit better than the rest of the overall market guys, back to you. >> flat still a remarkable accolade to have, bob, in this market environment and given amazing run microsoft had had in the last couple of years >> you had some of the semiconductor names that have done better. a little small part of the technology group did better than expected some of the entertainment names, 80% in cruise lines.

pretty hard to fair with some of these stocks right now >> bob, thanks for that. over to rick with a breakdown of what happened in the bond market this quarter hey, rick. >> they're the same and for two year note yields, we lost 135 basis points they're down 85% if you look at tens, they sell at 192 down 124 basis points, which means we're down 64% and if you look at 30 year bonds, they settle at 239. down 105 basis points, down 44%. now the dollar index could be a spot pending on how you look at it because it's up about 2.7%. settled at the end of last year, the end of the fourth quarter, but we know that a higher value for the dollar does give us a bit of a high temperature read on other economies trying to procure their dollars. kelly, sara, back to you

>> all right, rick, thank you. hot to hit oil prices as well getting absolutely crushed during the first >> kelly >> brian sullivan here to survey the damage brian. >> don't worry, kelly is not o fenned everything is is not fine in oil by the way item going to see bob pisani and raise him. he did mention exxon down 67% in the quarter. demand destruction has been off the charts anywhere from probably 13 to 20 million barrels a day just ripped out of global demand. at the same tile, you've got this saudi russia price war going on, which is now by the way, a u.s. saudi price war because the u.s. companies, they continue to pump as well bob mentioned that exxon mobil was down 45% of the quarter. doesn't look that bad. look at occidental marathon petroleum down over 70% in 90 days

in other words names where the market believes the eck quity if not already worthless will soon be simply because of those crushing debt loads and as we showed, yes, you can now by a birl of oil, 42 gallons, barrel of oil call ued western canada select in canada for $4.18 a barrel of oil cheaper than a beer >> thank you very much for that back to the broader market would you want to get back to stocks that have fallen so much an remain still csignificantly

below where they started the year >> let's talk about oil first. i think it's underinvested am i going to invest, i bought this for years am i going to invest with mbs from saudi arabia, with putin from russia, with khomeio mai km of the best energy investors in the world have gone belly up because you can't analyze a sector full of speculators and that right now, high demand is out of whack so unless you want to fly to canada, which you can't, and pick up some beers for less than a barrel of oil, don't invest it i have a little bank of america. i'm worried about what happens coming off this because the curve will flatten more in my view, so phenomenal ceos perhaps the best in the entire s&p. i think it pays to have a little exposure there but that's not where you're going to get the best bang for

your buck so to speak. i'm very excited coming out of this when ever it ends because we'll have free money everywhere and while no place to put it, you can put it in wiities. i'd rather be in growth. >> c arathie, wanted to ask you since you said you were a buyer, as it relates to the virus itself, covid-19, do you have enough viz b tbl and certainty around what's going to happen because it feels like there's so many questions even though i will say this week was pretty monumental in terms of some of the innovations we got out of companies like abbott labs with a five minute test j&j with a new vaccine candidate. how do you read all these headlines and determine where we're going to be in this country and what that's going to mean for our economy and market. >> we are also finding companies

and have been investing in them for quite some time, that are beginning to bf the solution to the problem. one of our companies stocks is siru srs. a pathogen inactivation company. and if you've heard of convalescent plasma, they're going to be part of the solution because they will inactivate any pathogens in the plasma so that it can be injected and fused into other patients and this plasma is from patients who have had covid-19 have recovered and are donating their plasma to be cleansed with the system then put into other patients especially very sick patients to help them develop antibodies and get their immune system kicking in to fight this thing so i think that's very

important. and yes, you've got arturis and moderna on the vaccine side. illuma is the starting point for it none of these other companies could do this if we weren't able to sequence the ggenome of thiss which we were able to do in two days versus five months like with sars. it's a big solution to the problem and a large part of the research we do >> there are so many innovative companies in this country working on exclusion solutions only pa tell, i wanted to mention an ohio company that i believe is the first that's going to sterilize the n95 masks for health care workers. huge news. we've got to leave the conversation there thaupg for swroining us. >> we have breaking news on xerox. david faber has the details and joins us now on the phone.

david, what can you tell us? >> not surprise for many people who have been following. we can tell you now it's not yet out. but it's stopped the pursuit stopped the proxy, not completely short in terms of where they've been they've been able to replace all hp directors it was an unlikely fight really from the start, but one that got more complicated a certain unwlingness to engage in a meaningful way. which were too much for xerox to

overcome as unlikely as it would have been, a company with a $4 billion market value could have acquired one with a $24 billion market value >> i man activity has ground to halt are there any other known ones out there that could fall apart or not happening as a result of how the world's changed? this was f never a contrast. so it's not as if they have an agreed upon deal and one side was trying tog get out, which are we are start tog see signs in various deals this morning, i mentioned a maul onebetween delphi being bought by warner and warner e trying to use the fact that delphi pulled out a $500 million revolving credit facility as a reason for trying to say it's null and void interestingly, tomorrow we're going to get the close of sprint and t mobile and we also saw that ge deal to sell the

medical, bio business to danner. we are seeing some close others are under contract. if they could figure out a way, they could deals that never got there, hp also thought to be a difficult one. the hope of course b had been there would been consolidation and many thought perhaps hp would turn around and say okay, we'll buyou, zxerox, because there are benefit to our two companies being together another one this morning was exalta the company had been for sale. they were getting quite close with ppg and clayton, but again, that one also falling victim to the current economic condition >> david, thanks for phoning in. hp down 4% xerox is up a bit. talk to you soon

let's hit retail now simon property sh, the large ers maul owner and operator in the u.s. announce iing it will furlh about 30% of its workforce as malls remain closed amid the coronavirus outbreak this comes as so many brick and mortar retailers they are going b to be furloughing workers as well joining us for more is is national retail fed kags ceo matthew shay what kind of job losses are we looking at from this industry? >> well it's really a tale of two cities you've got retailers in discount in grocery and in wholesale and pharmaceutical and others that are actually adding hundreds of thousands of employees and then you've got those some of whom you just mentioned that due to the coronavirus and the forced mandatory closures, really have no cash coming in the door and as retail industry leaders have been saying for weeks, there was some dra mmati

actions that were going to become inevitable without relief from washington. so i think you're starting to see that now and we're certainly pleased that congress passed the legislation they did last week the third relief package, but you know we can't get that in quickly enough to those businesses, large, medium small and to those displaced workers because we need them in order to get our economy moving forward again. >> matthew, if those funds do get flowing and fairly quickly, we get over the administrative hurdles, perhaps the teething problems in administering the money, will that be enough for your sector or would you would have liked to have seen more tail specific measures >> well, i think you know most of us across the industries were pretty realistic that industry specific relief was not to be to be a future of this legislation. the politics of that are not, we're not really very appealing

for anybody on capitol hill. of either party. that's why you didn't see any. so what they tried to put into this legislation was relief at the macro level and certainly, we were pleased that a number of of the things we promoted were included in the legislation. certainly the emphasis on individuals, workers, households, american families, small businesses those were all very, very important components of the things we thought should be included and so we'll see hopefully that that relief starts moving quickly and the payment to consumers goes out quickly the big piece now i think is the action with the so-called exchange stabilization fund. the esf, which is the $454 billion the treasury gets and now can leverage for the federal reserve to push out regional banks across the country to provide liquidity to these businesses that was something we were promoting more than two weeks ago along with many other business groups and other

observers because you have to consider that the companies that are most dramatically achktedskh are the ones that were solvent and going concerns and operating businesses and now through no fault of their own find themselves in this position. and so anyone in that position before this started should be able to get benefit from this relief package and be in the same position when we get through this, which we will and consumers will come back and consume r confidence will increase, but they shouldn't be worse off at the end of this than they were when they went into it. >> from your point, matte mat, are some of these companies that are remaining open and busy and in high demabd like amazon doing enough to protect their workers? big story went around and especially now that the new york ag is investigating amazon firing one of its workers that staged a walk out, one of its workers from staten island, over conditions and lack of precautions that the company was

taking around covid-19 >> i would say if you look at many of these companies, look at what walmart has done. target tractor supply company has done. they're increasing pay they're giving bonuses they're giving more generous benefits programs. across the board so i think you know any retailer that doesn't recognize that their most important asset is their employee and their workforce shouldn't be in business in the first place. that's their number one concern. it should be we think for the vast majority of the overwhelming majority, it is and i think that's why you're seeing these great investments and from just a purely economic standpoint, some of these companies have incredible new business coming through the doors. they need to service that business we've stood up on our website, job matching program so that those companies that are literally hiring hundreds of thousands of workers can hire

some of those workers from the companies that find themselves disadvantaged right now because of the coronavirus closings. so we're trying to put those companies together find those workers and opportunity to stay attached to the workforce. that ought to be everyone's number one objective so that when we get through this, and we will, we have to remember, consumer confidence is down because of a medical condition a virus. and once we get that beat, which we will, consumer confidence will come back as fed secretary, fed chairman powell said last week you know the difference between this and another recession is that there was nothing fundamentally wrong with our economy when we went into this so there shouldn't be when we get out of it. >> but there were things that were fundamentally wrong with these retailers. department stores were not heading into this crisis in good shape and that's leading some to wonder what the retail landscape of america looks like when we

get out of it. >> yeah. i think that's a very fair observation and we got the all assume that the trends and patterns that we saw before we be went swoo this period are going to accelerate and certainly companies that f stronger healthy balance sheets, great vision, that have invested in consumer engagement, digital footprint, fulfillment, excellence, those companies have strengths that are going the see them through this and companies that were not able to position themselves before they went into this i think are going to appearance that even more acutely as a result. i don't think that's a surprise. we see that happen anytime there's economic downturns that the trend simply accelerate. and that may be true for consumer behavior as well. certainly you've talked about that a lot you wilf and your colleagues, about the way some consumers behave with their retailers. the way they engage. digital. all those things are likely to

persi persist even beyond the disruption over the next weeks and months as we work through this >> matt shay, thank you very much good to see you. >> thanks. thank you. st. louis fed president has said that coronavirus could result in the unemployment rate in this country spiking to 30% coming up, cleveland fed president discusses whether she agrees with that in an exclusive interview with uanyocas d u n always watch or listen to us live on the go on the cnbc app we'll be right back. sleep this amazing? that's a zzzquil pure zzzs sleep. our gummies contain a unique botanical blend, while an optimal melatonin level means no next-day grogginess.

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welcome back toup mike for a look at one part of the market trading near historic lows. >> look at a this chart bank of america put out about the rolling ten year return from an investment and commodities a broad basket basically at historic lows you have to go back to the 1930s. dial back to b about a decade. we were just in the aftermath of a massive commodity boom super cycle, oil, copper, whatever

therefore an overinvestment period so the question is does this look like an inflection point. perhaps you can have the sort of ten years leading to e better returns or is it kind of an observe lute asset class in some respects given these forces and the changes in the economy big question, not sure exactly what tabss are, but it seems as if perhaps by the looks of this chart the downside in terms of multiyear returns from here, probably shouldn't be severe even if it doesn't dpo off to the go off to the races. >> mike, thank you the federal reserve take extraordinary steps over the course of this crisis to help steady the financial system. cleveland fed president loretta mester joining us now in an exclusive interview alongside steve liesman. steve, take it away. >> thanks very much, sara. happy to welcome president mester to cnbc

we're reporting today of a forecast of a second quarter gdp decline. i'm wondering how that might mesh with your yoan outlook and the downturn in the second quarter and when that might come >> thanks for having me. those numbers are not out of the range of possibility according to our own forecast. we're putting together scenarios now. of course how things play out are really going to depend on the course of the virus. so the virus is really and how well the u.s. economy can sort of contain or not the economy, but the u.s. health care system can contain the virus and spread out and flatten that curve so right now, in terms of the economic replications, we've actually told people to stay home you know, close youes and thing to do. given the severity of the situation we find ourselves in

so it's not unreason b to believe think we're going to see some really bad economic numbers coming out of that in terms of unemployment claims. in term of people who are not on payroll losing their job in terms of economic activity declining. we've told people that's an investment in public health. so i expect to see some very bad numbers coming out of the economy in the first quarter, second quarter and what it looks like coming out is really going to depend on how the virus proceeds and the success of the social distancing and the other tasks we're doik now in terms of keeping things contained >> how bad do you expect unemployment to get? >> so there's a range of estimates as you know. one of my colleagues has put a range of estimates up to 30% we're probably estimates not the

30% number, but certainly more, 10%, which is reasonable given we have shut down a lot of the parts of the economy i would say the way to think about this is not a typical recession in the sense that right, we told people that we want people to be not doing economic activity. and part of the goal thousand is to offer the kind of lending and making sure the financial markets stay liquid and making sure that they stay a firm foundation then bridging people from the economy which in february looked very good right through this period of uncertainty and sort of a pandemic spread and then the containment so that when we get to the other side of this, when ever that will be and that will be dictated by the virus, that the economy and economic activity can come back so you know, i think of what we're asking people to do as an investment in public health then we're making sure and i you

know, i credit the federal government as well as what the fed is doing, trying to make sure that we support people who are making that investment in public health. so when we get to the other side of this economic activity can pick up so people have the where with all to pick up from where they were and then the economy can move up. >> the fed has done quite a bit. slashed interest rates buying all manner and funding them is there any limit as to how big the federal reserve balance sheet can get? i've seen estimates of 9 or $10 trillion from the current level. zpl some of the things we're doing have had treasury backing. the special facilities we've set up and so we have that backing from treasury and therefore we can expand our balance sheet

other things are making sure that a the treasury market, the foundational market of much of the world's economy stays working well and i'm fully supportive of all the things we've been doing to make sure these markets stay functioning. that mortgage-backed security market's buying securities so if if you want to extend the bridge metaphor, right, the foundation on the edges o the bridge are making sure ha the markets the can function we're making sure we're addingly quidty so we have this foundation then the bridge are the things the federal government is doing and some things that we haven't laid out in terms of the main street lending phafacility so credit continues to flow to households and small and medium sized businesses and large businesses. so the actions we're taking are hot totally appropriate here to make sure that we can get the economy

support people and then support them as they come out of it so the economy can get back to strength so we're not damaging the fundamentals that were strong bf the virus hit. >> yeah. i still have a follow up to that thanks for being on the show how long do you think the economy can be in this state of a sudden stop, a deep freeze how many months before we all have to adjust our expectations, before those q3 forecasts won't show a rebound and before the fed has to think about what else it can possibly do >> right so that's a question about the virus. i'm not a medical doctor i can only take what the experts are telling us about how this might play out i think we have to look to the cdc and other medical eck pexperts about how see the virus moving out and we

have to be prepared for whatever they come up with as being the right model in terms of when it will be over and when we can get people back working. so i think we can't put a time limit on i. i think we have to just take what the pest sibest scientists are telling us in terms of how that's going the play out and be prepared to help the people who are bearing the brunt of this limiting of activity in the end, it's the right thing to do because this is a serious situation we find ourselves in we want to make sure we don't overwhelm the health care system right. and that will actually save lives, but in the meantime, right, it does mean we're going the see right some businesses, some and people need our help and so one of the things that we're trying to do is make sure that from the fed's point of view, we're doing we can to support people, households, to

make sure they continue to function people can start going back to normal activity. we're ready there and that economy as it picks back up. >> president mester, clearly banks weren't the cause of thi important role to play in getting credit to the companies that need it in order to get through the crisis given meantime, should they suspend dividends like european banks have done with their buybacks and on the flip side to that, should the fed help where it can and should it temporarily release wells r fargo from its current asset cap? >> so these are important questions. one of the things that makes us

you know in a better spot than some other countries is that our banking system was strong coming into this. in the eterms of its capital levels and one of the things, one of the other actions the fed has taken along with other federal regulators is to really encourage the banks to continue lending and so we have a stress test coming up that will you know have a scenario in there that will be a stress scenario for the banks to work through. that will bin formative about capital levels now i don't think we can say now what the right thing to do on that is. w we're going to get information in a month or so about that. but what may message is that at least coming into this, we had a strong banking system and i think that puts us in a better foundation for when we get out of this. we are encouraging banks to lend we want them to be lending to

small businesses the banks i'm talking to want b to be doing that they want to help customers. and they've all set up programs to allow you know, deferring of payments and of both principle and interest payments and loans. they want to help their customers continue to get through this it's an all hands on deck kind of situation i think everyone's trying to do their part to help the economy and peep and households get through it president mester, you voted against one of the rate cuts the federal reserve has done here. >> so i don't regret it and the reason i didn't support cutting it all the way to zero at that point is remember that was when the financial markets were not well functioning i was fully, fully supportive of doing everything we could to get those functioning because

doesn't transmit into the economy, so let's do more on the side of trying to shore up the financial markets and what we saw after that was the financial markets did start improving. we're still monitoring to make sure there aren't pockets that we will need to sort of keep our eye on about where the dysfunction is and they have improved in certain respects, but i think it could have monetary policy in an interest rate cut to do its do good, you need to have the transmission mechanism of that policy through the economy working so that was my focus i think it has less bang for the buck, but certainly obviously i wasn't in the majority there and i certainly respect my colleagues who wanted to bring

it down to zero at that point. even knowing that the focus really had to be on keeping the markets liquid and we could fix the dysfunction. i'm happy to say some of our actions are having that beneficial effect and that the markets seem to be working bet now than they were then. >> thank you so much throughout all this period here and i'm going to throw it back to wilf and sara who needs a studio we can do this from four different homes. no big deal. >> commercial real estate companies must be quaking in their boots. our thanks again and steve as always thanks so much for that. ahead, gary vaynerchuk -- >> she didn't give anything up white walls. i wanted to see her book collection, but i guess not. >> i know. didn't you notice when the chair of the fed did his interview on

the "today" show, it was just fed bulletin information behind him. book after book, so it was very focused but any way. we have to move on wrapping us up gary vaynerchuk will join us after this short break 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. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

here's where we are this afternoon. illinois is extending its stay at home order until the end of april. this as first responders and training are graduating early in chicago so they can help out on the front lines of the coronavirus pandemic 34 pandemics took their oath today with the mayor in attendance and in the spirit of keep calm and carry on,

neighbors in sheffield, england, were not going to let the coronavirus spoil their neighbor's 90th birthday so they practiced good social distancing and sang happy birthday to dennis from outside their homes to his obvious delight >> how long we've survived frk 90 years welcome to my home, by the way >> give us some cake >> oh, yeah. who's going to be the first little slice of cake >> and i bet he does make it to 100. as always for more coronavirus coverage, you can head to cnbc.com back to you. >> thanks. up next, entrepreneur, gary vaynerchuk, joins us for tips during the coronavirus pandemic. we'll be right back. doing everything possible to keep you connected. through the resilience of our network and people... we can keep learning,

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welcome back time for our next interview. cnbc's partnered with acorns on

an educational initiative called invest in you, ready, set, grow. joining us now is gary vaynerchuk chairman of media and communications holding company great to see you again, gary thanks for joining us. >> thank you for having me >> before we get on to the areas they perhaps could innovate, on the fact that clearly lot of companies are doing good at the moment and doing the right thing. because it is the right thing. but having done that, is it right for them to be also pushing that message out a little bit to be getting some publicity for the good they're doing or is that something that could backfire on them in due course >> i think it's a great e question manipulation and intent are two words that matter in this scenario i think a lot, listen, companies are companies. leets not get confuseded there's an enormous amount of

companies sitting there saying what good deed can we do so it brings a good light on us so we do more business because of it then the question become bs is that okay or not but i think you know i think as long as you're not completely tone deaf and as long as it's not completely obvious or ridiculous or if you're doing something like if you buy our product, we'll do something good if you just do good, then that tends to play and then how you communicate that becomes important. >> so what sort of ideas are you throwing out there, gary, as far as what you'd like to see companies do and how you'd like them to expand in the way they think b about their brand and how they can help people and also help themselves? themselves >> i think there are two things that stand out for me right now. one is the documentation of the good i think it's important if you've converted your plant into making something and you're donating it that i think it's appropriate to document that and really thank

your workers who are, you know, in risk, let's just call it what it is and bring awareness so the documentation of the good is something they think about and the distribution of that through the facebooks and the tiktoks and the tv commercials of the world. i think the other thing right now so think about is the macro. the far majority of fortune 5,000 brands are wildly incompetent in digital, creative and digital distribution and that comes by the fact that most cfos never run an ad on tiktok or youtube we're really recommending that this is a time from ceo down that people become practitioners. we have more down time right now. i think people are being efficient and effective with the zooms and the google hangouts and the slacks and the workplaces of the world, but i definitely think that becoming a practitioner during this down time in the world of marketing where there are so many new ways

to do it is a huge opportunity >> gary, we've seen companies like twitter and facebook guide for significantly lower advertising spending have you been in any way surprised by the scale of that and think, we understand that companies are going to cut ad spending and we're also seeing platforms like that and other platforms on-demand tv and so on and so forth and see a big rise in engagement. would you have expected those select avenues of advertising actually to hold up better than they seemingly are >> no. ironically, late-stage, dc-funded start-ups are the biggest -- are a big part of facebook and twitter's business. the -- the modern dtc brands and consumer brands are far more sophisticated in modern, digital markets. they've been able to afford it because they've raised so much capital and some of their unit

economics on cap and ltv are under water which is exactly why they've stopped spending so many of the biggest spenders have been spending at a loss without getting customer acquisition for the next fund-raising round the fact that the money behind raising your series d has dried out very quickly has led to them closing their marketing spending because they haven't had true economics. there are a -- for the cnbc crowd, which i spend half my life in, they would be stunned with realizing how many companies are spending more money on facebook and twitter and instagram than fortune 500 , they understand the consumer world better unfortunately, on the flip side of that most of these late stage, direct to consumer brands don't have their unit economics down so they've been forced to stop the spending and so the long tale of tens of thousands of them stopping the spend has dropped down the cpms and the

costs and the spend on those two platforms. >> gary, great to catch up, as always i look forward to the next time, aswell and do read the op ed, cnbc/investinyou we should say that comcast and cnbc are investors in a corns. >> the companies stepping out for the greater odgo during this global pandemic. those details in the good news segment when we come back. ♪ yes i'm stuck in the middle with you, ♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's the most open and secure public cloud for business. it can manage all your apps and data from anywhere. so it can help take on anything, from rebooking flights, on the fly

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♪ ♪ >> up next, we will round out the end of the first quarter the worst first quarter for the dow ever and look at what the second quarter has in store.

we're back time to highlight a couple of positive stories out there amid the suffering of the coronavirus. tyson foods issuing about their 60 million in bonuses to front line workers amid the coronavirus outbreaks. apple making a commitment to pay its contractors telling "the wall street journal" it's working with suppliers to make

sure hourly workers are being paid sarah? >> keep the stories coming mike, final quick start from you as we start the second quarter tomorrow after a brutal one for so many people just ended. >> obviously, the market's ability to look through what's going to be still a huge pile of bad news and sobering infection news will be very much tested, down 30% is a lot of discounting and it's not clear it's enough >> from mike, sarah and i, thanks for watching. stay healthy we're out of time. brian sullivan has you covered on the other side. ♪ ♪ and welcome to cnbc's coverage of "markets in turmoil," everybody. thank you very much for watching it was a down end to what was a miserable month and a miserable quarter all in all in so many different ways the dow closing the day down at 410 points ending its first worst quarter ever and the worst month since 08