240,000 americans could die. it is wednesday, april 1, 2020 breaking news reaction to the coronavirus right now. >> good morning. i'm becky quick along with joe kernen and andrew ross sorkin. the dow shedding 23% in three months the worst since 1987, the worst first quarter performance ever crude prices lowest we've seen in 18 years. coming off the worst performance for wti. starting a new trading month with the month of april. futures looking weak right now the dow would open down about

613, s&p down about 75 and nasdaq off by almost 200 on concerns about what we heard out of the white house last night. joe mentioned those numbers. 100,000, to 240,000 americans potentially dying from this. the treasury market where yields have come down right at about 0.619%. some pressure as people move into treasuries as a safe haven. andrew >> part of that, we talked about, so much of the money being rebalanced to some degree was propping that up that money won't be there today or the rest of the week or rest of the month because so many of the pension funds were there

irrespective of the numbers we were hearing we'll put some pressure on the market in the meantime, the number of confirmed cases has reached 189,000. more than 4,000 people have died in new york city alone the latest death toll has exceeded 18,000. maine is the latest state to issue stay at home order joining 28 other states. this morning, three out of four americans are facing some sort of lockdown due to the coronavirus pandemic to washington, d.c. where the president issued his most dire warning yet. predicting 100,000 to 240,000 americans could die. it was a remarkable press conference that took place last evening. eamon has more on that

eamon. >> good morning. it was a grim faced president trump yesterday. this wasn't the first time they've used that estimate of 100,000 to 240,000 deaths but it was a different tone here is what he laid out that all americans should expect to happen next. >> i want every american to be prepared for the hard days that lie ahead. we are going to go through a very tough two weeks then hopefully, as the experts are predicting, we will start to see some light at the end of the tunnel this is going to be a very painful two weeks. >> no in talking to senior officials, this time yesterday, we were talking about nancy pelosi and some democrats making plans for a phase four stimulus

bill on capitol hill gathering ideas of their own i've been talking to senior officials at the white house they tell me there is no planning going on right now inside the white house nothing says one senior official for a phase four they are focused entirely on executing phase three. they want to make sure they get that rollout right cautioning that no staffer inside the white house can rule out the phase four that is up to the president. we have heard the president discuss the idea of infrastructure spending. i'm told there is no active planning right now going on inside the white house for that phase four that is on a separate track and what they are doing inside the white house, guys. back to you.

eamon, before you go in terms of the real shift in terms of the president, his mood and the way he's approached this clearly shifting from comments really now taking on dr. fauci's advice in a way he wasn't before how do you think that affects the dynamic if it does at all? >> that is an interesting request. i don't think it does. what the president is talking about is a rough two weeks as those numbers climate this point, the category is out of the bag. governors are dealing with this on the front lines

fema is engaged. the president has dismissed this saying it is just a flu, not a big deal suggesting that he wants to reopen the country by easter he's backed off of that. you'll hear less from the white house minimizing this. that will encourage leaders across the country to take more aggressive steps so their cities don't become the next new york with the lead time, it may be too late it is unclear what the white house can do other than to issue the emergency response and fema, the treasury, small business administration and the rollout of phase three over a period of time the economy is going to take a

blugonning here. >> even in sweden, they've been approaching things differently and now some thought that sweden may go the way of the rest of the world. saying the cure is worse than the disease. the press conference went for hours. it was amazing it wasn't that well attended i don't think people necessarily want to sit next to each other at this point. >> there are entirely new guidelines for social distancing inside that briefing room. >> i could imagine i've heard vladimir putin is not

going near anyone. he recently met with someone who tested positive. the hits keep on coming. i'm not surprised at anything. when did fauci -- was that on a sunday show he said 100 to 200,000? >> yes i think he said on the weekend he said it earlier in the week as well in the briefing room >> trump just with the focus of laying it out and the tone that's what shifted yesterday, i think. we do need to have a conversation about continuity of government in this state you see boris johnson who tested positive the president said it is important he remain healthy. he's not planning to leave the

white house anytime soon you've got leaders in the country all in the vulnerable age group. there does need to be planning in congress. and what do you do about people on capitol hill getting in there to vote? we are pretty far along at this point. you are seeing world leaders beg affected by this already >> china is adding a few asymptomatic cases 1 billion plus in china and the number of fatalities and already in the united states, such different numbers.

anecdotally, things just getting back there the things coming in that we are hearing. >> the numbers out of china have always been suspect on every front, so it is hard to tell we are not sure how this is going to roll out in the united states talking about the idea that these are worst-case scenarios if you see other cities with the impact, then you could see these horrific numbers new york city is dense, other cities are not quite as dance. again, so we don't have a good sense of how this is going to roll out in different cities

if this hit houston the way it hit new york, we don't know. ultimately, it burns through a large amount they didn't seem to have an answer to that they seem to suggest that all the numbers for the entire country would come down in any case, the message from the white house was that this is going to be awful for america the likes of what we have never seen before >> eamon, i thought that was one of the most interesting parts of that press conference. those numbers of 100,000 to 240,000 with the assumption that you do make some pretty severe expectations out of people, that you do have these stay-at-home

orders if this is assuming we do take these strict measures, how do you come down from there dr. fauci admitted that models are imperfect. if we put in other inputs and tell us other numbers. again, the good case might be 100,000 to 240,000 deaths putting that in comparison where we might have something like 100,000 americans die in the course of world war i and 400,000 in world war ii. you are talking deaths on the scale of a world war for the united states. the impact will be horrific and we have a patch work approach. florida and texas taking a different approach than

california and new york. ultimately, the entire country will be faced with this, becky >> eamon, thank you for your time i'm sure we'll talk to you a lot more throughout the day. in the meantime, controversy over amazon's firing of a protest organizer. we'll show you what he told cnbc after losing his job and the response from amazon that will be after the break right now, we are in the red with the dow looking to open down about 640 points. the nasdaq down 200. the biggest market decliners in the s&p 500 right now. when you look at the critical issues facing our world,

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taking a look the u.s. equity futures they are down. we started out strongly and ended down 400 points or so. we are at a 1,000 point drop a

quick look at the biggest decliners year to date >> new york mayor ordering the city's human rights commissioner to investigate amazon over the firing of one of its workers a management assistant who says he was fired montd afternoon following a strike he organized to demand more protection for workers. i had spoken to him monday night and here is what he told me then >> me being the voice and tickitic sticking up for those who don't have a voice that's what i chose to do. it cost me my job. i don't want to work for a company who doesn't take care of its people amazon dropped the ball on that.

>> he said he asked for the building to be closed for professional cleaning after another worker tested positive last week. amazon said they fired mr. smalls after they gave him several warnings and asking him to take social distancing precautions. they asked him to stay home for 14 days after coming in contact. he came into contact further putting teams at risk. this is unacceptable i asked him about that on the show he made the comment that wasn't the case and that he was coming in unpaid. we went back and forth about that issue he said what he saw there in terms of workers knowingly

coming in sick, in part, by the way, it is such an interesting thing. amazon is now paying an increased wage and additional overtime fees. so people want to come to work but there are people coming in knowingly sick, some even vomiting on the floor. hard to take all of it and figure out whose side is right now an investigation under way becky, over to you >> andrew, you are seeing this play out from a lot of places. you are seeing the strike from instacart. other amazon warehouses, grocery stores and health care workers it is scareytimes.

not now what amazon was saying i imagine we will see a lotter ma of this across the country. >> think of trying to run amazon business as usual with the stay-at-home across the country. i have no idea how this is happening. i don't know what to tell the company to do but just the daunting challenge of trying to do that. a lot of people for them to stay at home are depending on amazon employees not staying at home. >> look, these people are on the

front line we are dependent on them in so many ways. i applaud them the question is what are companies doing to keep employees protected >> so much of this, even if you are doing temperature checks and telling people if they don't feel well to stay home asymptomatic spread is becoming an issue how do you protect against that? this is a brand-new virus and we

are learning more every week i'm reliant on the amazon people coming to my door. i've wanted to leave out money or water but they can't really take any of that stuff right now. what do you do with fresh direct, you can leave a tip to a person online it would be nice if you could electronically leave a tip for people who come to their door. >> i've seen it starting with venmo. people asking can i venmo you money. >> i'm not always there. i don't see it >> just talking about this in background, what they are really

worried about is the supply chain a couple of weeks out. that becomes the larger -- >> i'm very worried about that >> hopefully things will abate >> again grateful for people showing up and doing their jobs there on the front lines for all of us. when we come back -- at the super markets and health care workers, of course when way come back, how you should prepare your portfolio for the second quarter that begins today looking at some of the biggest decliners and losses are staggering right now, here are the images of the pandemic yesterday from across america the barkins are empty nesters now.

should they downsize? probably. will they? not as long as thanksgiving is a holiday. planning for the future is about more than just money. let equitable be your guide. welcome back stocks just closed out the worst first quarter ever the dow and the s&p doing the

same joining us now, barry knapp and mike santolli, our senior markets analyzer at cnbc what are the odds that april will be a better month >> if you want to look at historical month the decline has tended to front load the damage. i don't know a that we can fix ate on the catalyst. a tremendous amount of attention in the next few days that there is the idea of a mechanical rebound because of the underperformance of the stocks the idea tells us there is not a

whole lot to grasp the idea that a market could hold on to this place. we are already at the post collapse slop. we are going to cut in a little bit. i don't know that today's decline alters that story so much. >> what do you think >> i think we've made the low for this cycle i think we made it there a week ago monday looking at the analysis and what your friend calls sudden stop recessions in 1958, there was an asian flu that took 100,000 lives. it is not clear what role that

played when you look through all these business cycles, it's unclear when we are down 35% down likely at the recession that would be at the end of june the timing would have put in a low at that time frame i agree it is always difficult at the other side. a lot to talk about the retest i made a sale in that morning on that whole hype on the start for the sectors that are likely big winners on the other side of this one is health care we've had 30 years of profit

margins on health care that would become much more efficient to turbo charge that trend. that trend already under way with a movement to the cloud and investment to software having that opportunity to buy stocks even though they have not fallen that much that's how i'm thinking about this >> i listened in to a virtual ideas dinner of sorts.

saying, okay,s market right now is back 2017, almost 18ish territory. you say to yourself, okay. is the economy even six months out to 12-months out to 2018 almost everybody on the call said no. because there is so much morris being. what do you think of that? >> i think it is pretty static analysis on the other side of that, there is an element of creative disruption to them on the other side, some of these trends get turbo charged you knock some of that bad

leverage out with all of the rate recession going on, that we funled money to zombie companies and that that was a drag. i think that analysis is too point in time for me it you come up with a scenario where you think returns will be lower? i suppose so the real question here is when is the end of the recession. the timing of the peek of the virus? i think we are getting visibility around that we are going to get a pretty decent rebound the first decision for an investor is, okay, if we fully prices in this crisis and if we have, should i be using this as an opportunity i can tell you, in my career, the best investments made have

been buying into these down drafts >> barry, let me ask you a question whether this is where we'll differ do you believe people are going to be on airplanes shoulder-to-shoulder in july or august or september? >> no. i didn't recommend the airline stocks i recommend we'll be coming out of a recession at which point, it undoubtedly will be uneven by the first quarter. by end of next year, we should be doing pretty okay by sure, is there going to be significant changes in the nature of their economy. absolutely buying airline stocks will be like bank stocks after the crisis it took me 10 years to get involved with that sector because of the costs associated with the government lending you

money. >> barry, thank you for being with us today. mike, good to see you. we'll see you a little later this morning coming up, we have a lot more from "squawk box" this morning. what a guest list we have. i guess it is easier to get people on the phone. we are going to talk about yesterday's warning from president trump that americans are in for a couple of tough months in his words, two or three difficult weeks. we'll talk about potential supply chain from the administration that tackles shortages. i here is a look at yesterday's s&p 500 winners and losers w?w?uó

good morning u.s. equity futures are down talking about the dow jones industrial average at this point, volatile session yesterday. probably likely to be followed by a fairly volatile one this morning. we'll keep you updated president trump and his coronavirus task force are strongly urging all americans to hunker down the next 30 days predicting that 100,000 to 240,000 americans could die from

coronavirus even if the country adheres to strict social distancing >> i want every american to be prepared for the hard days that lie ahead. with err going to go through a very tough two weeks then as the experts are predicting and after having studied it so hard, there will be some real light at the end of the tunnel, this will be a very painful two weeks. >> dr. fauci cautioned that we would continue to see numbers go up but not to get discouraged because the administration is working. andrew joining us now to talk about the global fallout of the pandemic is our guest. so much to talk to you about what this will do with our relations around the globe one of the things is the idea of

the government effectively forcing companies to start using its powers the government using its powers to force companies to manufacture and make things that it historically had not. now, it appears they've used that privilege hundreds of thousands of times under this administration so the question is how you think this changes the relationship between the government and the business community >> they've used it in small ways, mostly to facilitate defense procurement and use it in line. let's keep in mind given how strongly aligned this cabinet has been with the private sector and also given to how trump felt like he has had good relations

with ceos to help dig out of this crisis. the first big market move up was when trump was in the rose garden with all the ceos together his perspective has been that they are doing what they could anyway let's move in that direction unless you see real urgency and public push against companies to fill any of those holes, you you are not going to see president trump or the administration try to roll this out against company after company after company. more interesting will be policy pushes that come as they are seen more important. bringing labor back to the united states when unemployment hits 15% moving key supply chain back to

the united states. those are key calls. that is more likely where we are going. >> do you think that is a function of government pushing business or business deciding it is better to be near customers given supply chain issues or lessons we may be learning from this crisis? >> i think it will be both on one hand, there is no question that just in time time chain given the shock we've seen needs to be more resiliant the just in case supply chain needs to be more in the united states and more mexico too as companies look to pair back the cost some of that foot print will come from china as well. looking to shore those up

towards the end of the year. i do think as we get closer to the election and the american economy moves deeper into recession and more visible unemployment, there will me more of a push. >> given the outlook which is to say as a result of the long term, that we are going to come more back together i know you thought that was only possible maybe a year ago to maybe even splitting apart even more and what that means for business is. >> the idea of this g zero world absent leadership, we saw that in the markets

in the technology sector, that will drive more deeply into manufacturing and services the thing we are not dealing with yet is just how bad my this is going to hit the non-china merging markets. wi we have challenging relations with china that is going to continue to grow the urban areas where people are tupaced togethe t too spas packed together they have shared sanation or other things that hit will devistate the economy in ways you won't expect in the u.s. and europe that will make it more challenging to get travel and business restarted with those parts of the world

that will drive more volatility as well. >> ian, always great to see you. hope to see you again soon becky over to you. when we come back, we have the latest on the coronavirus. we'll be talking to the head of an urgent care center to see how his business is rolling out new rapid tests for covid-19 fur t futures are sharply lower down about 700 points for the dow you can watch or listen to us n aptime live or othe p. we'll be right back. the barkins are empty nesters now.

should they downsize? probably. will they? not as long as thanksgiving is a holiday. planning for the future is about more than just money. let equitable be your guide.

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

wick check on the futures

fluctuating. the dow somewhere between six and change and 700 points. we'll see. it is early. pre-market trading yesterday, we were up pre-market today, we are down 700 i think, that was a good word for it, the sloppy kind of trading you would see almost after a 50% retracement of the selloff. coming up, the new five-minute covid tests. we'll be looking at that after the break. looking at how markets did overnight. e nikkei down. hong kong stocks falling more. we'll be right back. half hearted yes, allergy ra

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welcome back abbott labs, molecular covid test is rolling out today. you are one of the first your again care operations to implement the test it's available in go health

locations in san francisco and portland you got some tests -- this is fast although we should point out this has been in development between you and abbott for a couple of years, just the platform, i guess, not necessarily for covid-19 >> that's right, joe thank you for having me this morning. that's exactly right we've been work with abbott for about two years with this platform so when we first trying it in our centers and really a huge innovation. so we currently deployed in a number of our markets and do it historically for flu and strep testing and the beauty of this particular test is that we get essentially almost instantaneous results. we're able in what's a short visit for an urgent care patient to give them clarity of whether they have flu or strep and now covid-19 you're exactly right this has moved very quickly. we're one of the very first to

get a shipment to san francisco and portland markets of this test we will roll it out in full scale this morning when we open on the west coast, but i'm really pleased to tell you that we actually had an opportunity last evening, at the end of the day in our san francisco market, in our go health partnership to utilize the test so the first patient that took it, we knew within four and a half minutes that patient was positive for covid-19 huge innovation there is the ability from a care perspective for our doctor in this case to share that result with the patient in that same visit and talk about a care program and pathway, so calm that patient's fear, help them understand what's going on and then talk about what happens next all in that same visit. >> we talked about it, todd, that here to foreif it was going to be days and days and days a

lot of health care professionals have to assume the person is positive whether they are or not. all that medical equipment, protective equipment you have to use for a person in a week who didn't need it for those who don't have it you don't have to worry about it the false negatives that we've seen, with the other testing, is that a problem here as well? can it test negative and then as the symptoms get worse could you retest with the abbott test and then all of a sudden test positive a couple of days late center >> joe, it remains to be seen. one of the things we're confident about with respect to this particular test is that in the past when we used, it's very similar for flu and for strep and the accuracy has been creamily high. so given it's brand-new, under an eua, first time it's being tried, we don't have that data to know exactly what that's like

and is there a possibility of some false negatives but the ability as you just mentioned to know the answer within five minutes instead of having to wait for days in terms of patient behavior afterwards, in terms of them maintaining quarantine and what they are able to do is a huge step forward. there's been limited ppe for our providers and team members and this is about both keeping our patients and our team members safe and that team member safety piece is critically important because if we don't have our front line caregivers which we're fortunate to have great ones across the country then we can't deal with this covid-19 crisis and fight it the way we want to. so we think again a huge innovation and we've done a number of other things to try to advance that the way we'll be rolling this out is through a virtual visit we ramped up our virtual visits in a number of our markets

we'll be across the country very shortly. a great screening tool the patient goes through a virtual visit at first the provider, just like a regular urgent care visit but if it's done through video, two way video live and gives us the ability to screen for patients, obviously you're likely aware the screening criteria has moved around and that's one of the dynamic natures we're dealing with here. the process is you go through a video visit. you will be screened if you meet the criteria for a test you'll be assigned a center we do this curb side to minimize the exposure for our team members and the patient themselves it will to be done on the curb, in the car, something we pioneered in our north carolina market, and so given that you're seeing an image of it right now, given that ability it is safer for our patients and team members and it helps us protect

ppe so that we know we have enough to get through what we have to get through over the next several weeks and months. >> todd, real quickly, when do you think it will get to the point where people who may not meet that criteria, may not have symptoms can get tested because the cdc is focusing on potential for asymptomatic carriers being a part of the spread >> it's a great question we're certainly hopeful that will be sooner than later. we've come a long way in just a week or a few days now in terms of the ability to test and access to test and the abbott's platform with this molecular is a huge step forward and they are ramping up their production and we believe we'll have access to a greater number of tests. there's been a huge supply demand and equity as it relates to the testing capability and a

high screening criteria. our focus here much like with the regular test, goes to our health care workers and other first responders who are taking care of us we're hopeful here >> okay. todd, we appreciate it thanks for all you're doing. you're breaking up a little bit on us now as well. thanks so much and thanks for everything that you're doing thanks for bringing us up to date it sound like a very good step thank you. andrew okay when we come back two big hours of "squawk box" ahead. mohamed el-erian will weigh in on the brutal first quarter for ouocks and how he's thinking abt investing for q2 we're back in just a moment.

"markets in turmoil" futures sharply down this morning following one of the worst quarters on record amid the coronavirus pandemic white house warns the death toll could reach 240,000. it's the first of the month, and bills are mounting for millions of americans out of a job.

we're going discuss loan options for small businesses and get an outlook for housing. plus, turbulent times for the airlines after the sector's worst quarter ever many companies are rethinking spring flying schedules. we'll speak to the former ceo of spirit airlines which recently announced the suspension of flights to new york city and new york city area you're watching special coverage right here on cnbc >> good morning, everybody welcome back i'm becky quick along with joe kernen and andrew ross sorkin. u.s. equity futures on this first trading day of the month of april and second quarter are under some pressure. yesterday the markets closed lower. dow was down by 400 points and this morning it looks like the dow would open down by another 767 points right now if it were to open. s&p under pressure down about 90 points

nasdaq is off by 233 you've seen these red arrows move around the global markets if you've been keeping an eye on a shah overnight, asia overnight also seeing plenty of red arrows and same story if you're watching european trading. nikkei closed down by 4.5% shanghai composite was off by half of a percent. in early trading in european markets, red arrows across the board there too. the dow coming off its worst first quarter on record. we'll have team coverage this morning of all of the issues that matter most to your money phil lebeau with the latest on airlines, diana oleck with the housing market, but we begin this morning with steve liesman who is looking at key economic data coming out over the next few days steve, how are you, sir? >> reporter: doing great thanks very much yeah we're getting some very

important data coming out. jobless claims tomorrow. and the jobs number on friday. unfortunately, the expectation among most economists and you look at the data, it's not going to pick up the initial wave of firings and the huge surge in unemployment likely going on in the economy. let me show you the estimates and begin to explain to you why it's not going to be in the data and when we might see it adp jobs looking for a decline of 125,000 that comes out this morning. jobless claims, though, expected to surge by 3.1 million. and the nonfarm payroll expected to only decline by 10,000. those are the estimates on the street next screen we'll explain why this disparity exists. the survey week from adp and nonfarm payrolls is the week of the 1th throu8th through the 14h

in addition the adp will count a person employed even if they are not paid, if they remain on the payroll until the employer, if that happens, purges that person from the payroll the government, bls, they will count you if you did any work during the week. let me show you claims numbers here which are the best job of picking up what's happening right now. look at that small increase in claims between 3-7 and 3-14, up by 70,000 or so. that's week that the job numbers will pick up look what happened the next week plus 3.2 that 6 million right there, 6.7, whatever it is that is going to equal in two weeks what took us 20 months to do in the great recession. that increase in the number of claims this is going to be a huge

surge. so there's three things here one is we don't know what the response is rate to the employees for the survey there's adjustments that use long term trends to adjust jobs. they won't adjust to show what's happening in the economy this idea of government programs are they working or not to keep people employed? we don't know the answer to that it's why i reported yesterday economists are looking at alternative data series and why the jobs report will be unemployment claims. andrew >> okay. i think it's joe >> i'll take it. >> reporter: i never know. >> i know. but you'll find out in 10 seconds from when you stop which is always fun from retail investors to multi-national corporations, financial institutions to government everyone is feeling the pinch.

and the effect may be a better word for what we're seeing in the coronavirus for insights and solutions let's bring in chairman at citigroup i don't know any business that's not affected and i can imagine investment banking is the same thing. but i'm just wondering, there must be a lot for you to do for clients who are in a period like this and if there's another side to this which we know will be, work outs and things like that i can't imagine you won't be really, really busy at citigroup. >> great good morning thank you for having me on we have been incredibly busy and i think twe pull together that makes us all proud in terms of the focus first safety and soundness of our people but as we move on to the client base the area that everyone has looked at is

liquidity. we've had significant demands in terms of liquidity this crisis, obviously, is one where there is solutions we're focused on doing what we cannot just on the corporate side but in terms of our consumer base unlike the other crisis we want to come out of this even stronger so it's been incredibly busy as you well know. you got to stay disciplined in this time and avoid certain of the news and stay focused on the people and the business. >> it's different, you point out from the financial crisis because a lot of banks and companies like where you are, are better capitalized but i can imagine you got to be pretty nimble. i can't imagine m and a activity will drive your business any

time soon. what will you be doing for customers, you mentioned liquidity. what else? >> i think the first thing is liquidity as we talked about in terms of that nature the other thing worst noting is the investment grade bond market which has seen a record week, record month and record quarter with over $250 billion worth of issuance companies that are able to take advantage of the investment grade bond market are trimming their debt albeit the rates have gone up a bit, people are looking for safety and soundness ensuring they have cash on their balance sheet. we've seen some small equity issuance, not big but small equity issuance and seen the high yield markets and leverage loan market get slightly better. again, the focus is on ensuring that the balance sheet works, liquidity is there right now in every situation. and from an m and a standpoint i think we've hit the pause button

and it will be a while before this returns because people will need to figure out exactly what the requirements are, what the projections look like and how, in fact, they will implea mernt them this is not the time period over the next few months for m and a, it's time for financial security and liquidity. >> leon, it's andrew here. big companies, small companies, all trying to draw down on their credit lines we're hearing different stories about private equity firms told their people to draw down as much as you can. banks are saying don't draw down on this line we'll create a new line effectively at a different rate for you can you speak to what's happening in that space? >> yeah. i think what's happened in that space is that we have exists lines with clients and if they choose to draw down we'll work

through and draw down those lines. in many other cases those companies have decided instead of drawing down their lines they will go into the bond market and trim down their debt i heard those stories from the private equity side but frankly we've not seen too much of that at all so that's, you know, maybe that will happen here as a second wave but we haven't seen it at all. so far, so good. and given the capitalization of the banking system coming into this crisis, i think people feel pretty comfortable to ensure they can provide liquidity to customers and the clients that they need to ensure we can turn out of this hopefully in the next few months. >> leon, you spent so much time on the phone, because you're quarantined like the rest of us, staying at home. but the idea of talking to different ceos, in terms of the various timelines that you hear from them about how they are thinking about this. we have some investors that come

on the program who think come the middle of may we're going to be back in business and things are going to be better other people say come june it will be better some say come september. some say it may take longer than that what are you hearing in terms of a consensus, if there is one in the ceo world >> a couple of things. more ceo conversations in the last week or two that took place probably in three months every single person asks the question when do you think we'll be out of it there's a view that, you know, come the middle of may you start to get a gradual re-opening. everyone is talking to each other to get some sort of comfort and idea because people don't really know how quickly it will re-open, what the ways it will be and they want to be prepared to get business as stable as possible as they come out of it.

every single conversation i've had that question does come up >> leon, thank you and please keep us updated on that that is the question, but i'm sure there's going things that you and a lot of your people are going to be working on between now and may as well. coming up, it's april 1st, believe it or not. and does anyone really think about april 1st? nobody does. anyway, it is april 1st. that means many americans have mortgage payments due. one of the many parts of the economy where we're likely to see the impact of the pandemic and ft. myers fallout. before we head to break check out this morning's pre-market down movers. we're coming right back. on april 10th... poppy come quick!

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welcome back to "squawk box" a fresh read on the housing market mortgage applications out just minutes ago. we want to get over to diana oleck who has the latest numbers. >> reporter: total mortgage application buying creased 15% compared to the previous week. that was driven entirely by

refinancing because after rising for two weeks mortgage rates dropped the lowest level ever on the nba survey average 30 year fix plunged to 3.47% from 3.82% far loans with a 20% down payment all thanks to the fed stepping in and buying mortgage backed bonds. refinance application spiked 27% and we're 168% higher than the same week one year ago rock bottom rates meant very little to home buyers. mortgage applications to purchase a home fell 11% and 24 home runs lower than the same week one year ago. today is the first of the month where a lot of people pay their mortgages but with thousands of americans either out of work or losing income, mortgage servicers are being barraged with calls for help, albio roers with government back loans,

fredfred freddy mac and fannie mae. those borrowers make up 62% of mortgage market. an independent lender which serves those mortgages, phones have been ringing off the hook >> we have set up ibr, which is integrated voice response which basically allows customers to ask for service. on sunday we had ibr requests where people were able to get their own forbearance online >> reporter: he was head of citibank mortgage during the subprime crisis. while the mortgage market today is much more healthy the impact of the coronavirus could be even worse than subprime. back to you guys >> diana, just given how much concern and how much tumult there's been in the mortgage market what does it mean for anybody who is trying refinance

with these low rates >> reporter: rates are low and could way to lower that payment especially for people who lost income you can apply for a mortgage refinance and they are moving things online very slowly. owe states you can't sign or notarize we've talked to title companies and they are moving the entire process online and fha have relaxed owe standards like inhome appraisal part of it and face-to-fa t-to-t a -- notarization. how businesses can access capital from the government stimulus plan and potential problems at 7:30 eastern time mohamed el-erian will join us with his take on the market's action. futures at this hour are one pressure dow futures indicated down by 770 points, just finished up the

first quarter. a rough one. first quarter was the worst first quarter on record. here's the second quarter. red arrows we'll see. we'll be right back. ♪ ♪ i got that vibe, got that vibe ♪ ♪ got that vibe, yeah, i ain't petty, ♪ ♪ looking fly, looking fly, ♪ ♪ looking fly, yeah, they ain't ready. ♪ ♪ i can shine, i can shine, ♪ ♪ i can shine. ♪ i'mma do what i'm made to do. ♪ ♪ i'mma do what i'm made to do. ♪ built for excellence. you start from the foundation up. the excellence is reaching dreams and chasing them at the same time. ♪

should they downsize? nesters now. chasing them at the same time. probably. will they? not as long as thanksgiving is a holiday. planning for the future is about more than just money. let equitable be your guide.

>> welcome back. futures, dow now down nearly 800 points, one of the worst levels we've seen in the pre-market session. 10 year note, around .61% or so. treasury department out with guidance on small business loans under the $2 trillion aid package. kate rogers joins us now with more on how businesses can access that capital. hi, kate >> reporter: hi, joe good morning

those loans will be available beginning friday and senior administration officials said yesterday that the capital could be in the hands of small business owners as soon as same day. right now the sba is working on a portal where small business owners can enter this in a zip code and find lenders in their area if they don't already have a working relationship with a bank then apply online with that bank right now some 1800 lenders are a part of the program but any fdic insured institution is eligible to register with the sba and the administration expects many of them will participate in the program loans will have 0.5% interest rate and payments can be deferred for up to six months. loan forgiveness can be forgivable lean must be used for certain competences. these loans are 100% backed by the sba and administered by the banks. they will be available on a first come, first serve basis which is important for

businesses to know demand will be very high and a lot of questions remain how this demand will be met one important point senior administration officials did say if the $350 billion is run through that treasury secretary steven mnuchkin will head back to do to congress to ask for morgan for these businesses when we come back a lot more on "squawk box". ahead, mohamed el-erian on what investors can expect in the second quarter so far he's been right let's hear what he says what comes next later spirit airlines first u.s. carrier to suspend flights to coronavirus hot spots. will others follow suit? we'll speak with former spirit ceo and current jetblue ceo. check out this morning's winners and losers you doing okay?

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. welcome back to "squawk box" this morning take look at futures they are lower this morning, indicating a stark start to the second quarter joining us right now, on the market, someone who has called it right thus far, mohamed el-erian good morning to you. help us with where we are right now. you know, we've been talking about whether a bottom is in, whether there's any kind of stability we're starting to see. do you see it or not >> so, i've been pushing back against this notion we have

establish ad bottom. i called it a counter trend rally, that we were still on a downward trend i think we are the fact is, andrew, most people haven't quite seen the uncertainty around the first part of the situation and the shock. second how long will it take to get the money pushed out by policies into the hands of businesses third, how tricky the restart is and finally the post-crisis landscape. until we price that in, unfortunately, it's still more of a down side for markets from here >> and in terms of pricing that in, though, in terms of -- walk us through the permeatations which it will get priced in and when either looking for or in your mind must be missing at this point? >> look, we haven't seen this sort of shock before we've never seen a sudden stop

to the global economy. it's taking us time to appreciate for example, a lot of people went into automatic rebalancing not realizing it is different this time around and that's the favorable technical we had and that's running out right now it's a common issue. it will take time. we're getting there. very few people are talking about vs now it's more of a u. we don't understand there was massive uncertainty and severity of shock and getting money in the hands of people. this is really unfortunate liquidity problems will become solvency issues for some businesses that's a real concern. >> so, for those investors out there who are watching us this morning who have cash on the sidelines, who are waiting, thinking that there's a bottom or they are trying to pick the bottom which is an impossible task to begin with, tell them what they should be doing?

>> i say you're not going to be able to pick the bottom. whatever cash you have divide it over five installments so the notion of averaging into the market and make sure, if you really want to go in at this point i wouldn't but if you really want to get in, do a fifth now, a fifth next one. no one can tell you how these dynamics will evolve we haven't seen this before. >> can we go back to that point you were just making the idea that this is going become a liquidity issue for a lot of companies that are out there i don't think we've spent enough time on this i think that's the ugly undercurrent rolling through all of this. we may have seen this initial drop-off if we can get back to normal quickly maybe some of these businesses are okay. but i think there are a lot of company that took on debt. a lot of things have happened. with this sudden stoppage it

changes the picture for everything >> you're absolutely right, becky. two groups of companies. there are those that have access to debt. and they are taking on a ton of debt we even had some high yield issues they are building a ton of cash duffers which they should but when they come out their earning power will be less so their credit worthiness is going to be weaker on the other side you have companies who unfortunately do not have access to loans, or to debt issuance and for them a liquidity problem will become a solvency issue which means a reversible shock will become permanent capital impairment shock. wherever you look, we have to price in a different post-crisis landscape. and that's one of the four things that as the markets haven't got their arms around yet, they will, but it means lower valuations from here

>> can you just walk us through your own timeline you're using in your head to think about this crisis because we've asked basically all of our guests what their timeline is and i would say right now the consensus timeline that you keep hearing is sort of a mid-may, or even early june, that there's some -- i don't know what that return looks like, that may be the consensus right now, some people think that's aggressive. others think that's not optimistic >> so i got a sense that the timeline is even short he in most people's minds and that's priced in and that notion we can be date specific at this point we have to turn the switch back on that's not how it works. we don't know what the date is it's not a matter of turning the switch on. this is a complicated restart that people haven't thought about yet. i don't have a time and i

wouldn't encourage investors to have a time. first have the resilience for the journey. make sure you can stick through this journey which will be volatile second have a few thing that you're looking at to tell you when it is you're getting closer to the definition of a timeline. and third, have the ability to move when you see it don't get hooked on a particular timeline that's how you're going to navigate a really difficult journey but the destination will be better for markets. >> given your concern about credit and liquidity, liquidity turning to solvency issue for those investors that own certain stocks or certain sectors is there a certain screen you would put on the market right now for those investors who are saying i should get out of certain things still at this point, based on what you're saying >> so, the trade -- and you've heard me say this in the last

two weeks, up in quality still having an opportunity to go up in quality what does that mean? if you own a company that has any of these characteristics you should go up in quality. one, if it has no cash reserves or insignificant cash reserves two, if it's very negative cash flow and third, if it has a lot of debt if you own a company right now you're betting not just on a bail out, you're betting on a bail out that's not going to undermine the capital structure and i think that most of these bail outs will come with conditions so be very careful if you're trafficking in low quality companies, whether you're doing this in high yield bonds, triple cs, double cs or doing it in certain stocks >> okay. mohamed el-erian, also appreciate your time and perspective and your smarts on all of this. we look forward to talking to you again very, very soon.

when we come back, turbulent times for the airlines some even stopping service to areas of the country that are coronavirus hot spots. we'll take a closer look at that sector and speak to the former ceo of spirit airlines a rhee minder for you watch or listen to us live at any time on the bccn app we'll be right back. ighthouse has weathered many storms. seeing the break in the clouds before anyone else. together, we'll weather this storm. when yowhat do you see?itical issues facing our world,

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down 700 and change this morning. ten year at 0.614 last i checked. >> meantime we're watching shares of hp the tech company falling after xerox said the environment is not conducive to acquiring hp. also quest diagnostics is withdrawing it's 2020 guidance that's because people just aren't going the doctor and having tests for other things right now. quest is doing 30,000 covid set as day but still doesn't make up for the short fall shares of quest are down by 1.1% andrew okay when we return a lot more on "squawk"

a brutal quarter for airlines. traffic coming to a screeching halt thanks to the coronavirus outbreak many spring schedules being reworked check out some of the big airline names this morning we're right back with that story after the break.

all right. welcome back, everybody. we'vebeen watching the futures this morning and have been seeing some steep losses indicated, at least hide of the opening on wall street right now after one of wall street's worst quarters on record dow futures are indicated down by 744 points. obviously march was a very difficult month. the quarter, the first quarter was a difficult one. we'll see what happens you can see for the dow it was down 23.2% for the first quarter. second worst quarter that we've ever seen and it was the worst first quarter we've seen worst quarterly performance since 1987

worst quarter performance on record leading the decliners for the blue chips boeing sliding 50% since december 31st shaving 2,000 points from the dow over that time. andrew okay president trump and his coronavirus task force are strongly urging all americans to hunker down for the next 30 days his top health officials predict 100,000240,000 americans could die from the coronavirus even if the country ad here's to strict social distancing. here's the president's warning >> i want every american to be prepared for the hard days that lie hide we're going to go through a very tough two weeks. then hopefully as the experts are predicting, as a lot of us are predicting after studying it so hard we'll see light at the end of the tunnel. this will be very painful, very, very painful two weeks >> dr. anthony fauci cautioning that we would continue to see

numbers go up in the coming days but said not to get discouraged because the mitigation is working. >> all right andrew, thanks sounded like we're tossing the sound bite from dr. fauci. brutal quarter for the airlines. the major carriers loss half of their value. spring schedules are being reworked and phil lebeau joins us now with more >> reporter: joe, you know we talk so much about what percentage of flights have been cut, how much capacity has been taken out of the system. i've had a number of people say to me what are they still flying how many flights are still out here here's the best estimate we have based on april and may again, we won get into each month. generally speak of the spring schedule, southwest will make 60% of their flights united 42%, delta 30, american 20 the big three, united, delta and

american, lower than southwest because, remember their external schedules have been brought down by 5% if that. in a lot of cases they are doing almost special runs, if you will, when you're talking about transatlantic as well as pacific. when you look at the passengers, here in the united states we've been watching this every single day. the reason is some people are wondering can it go below 100,000. sure it can go below 100,000 the number of people who are flying on monday, 154,000. we'll get the latest numbers later on this morning. those are the number of people screened by the tsa to passing through security and on to flights. couple of airline specific stocks that we want to look at american, delta and united when you look at these guys, keep in mind they cut their inflight service closed a number of their frequent flyer lounges or severely restricted what they are offering in those lounges as

they try to cut costs. look at spirit airlines. we're showing you this because spirit is halting its flights into new york city area. laguardia, hartford, couple of smaller airports we'll see this with other airlines jetblue cutting back its new york city flights by i'll% who is going into new york city besides health officials and other people they aren't doing it for leisure or business. so it makes sense you're seeing dramatic cuts of flights into the northeastern part of the country. >> phil, i have a question for you just in terms how these loans would work i know the airlines gets the loan and it assumes they continue to pay their employees. they pay their employees and they think, okay this, is a great idea we want this loan but let's say this drags out longer than they had anticipated, they see more problems come back in the fall or winter of next year. if they then decide to layoff

employees as a result do they still get these loans forgiven or you have to save all your employees forever? >> reporter: one is immediate cash grants, that's not repaid doesn't have to be repaid. other 25 billion comes in the form of loans. terms are still being finalized by the treasury department but in broad context you're right that they have agreed they are not going layoff any workers, have major furloughs through september 30th that's the rules for those loans. now you get september 30th and we're still looking at the traffic levels that we're seeing right now. i'm not sure that the airlines can sit there and say look, you know, we got to do something here we're losing millions, billions of dollars flying planes with only a handful of people on board. if this doesn't change by the end of september i expect we'll see furloughs or likely see another round of the government coming in and saying we want you to maintain service. remember, guys, ultimately, the

government has said we want to you maintain service that's a condition of the bail out. if the government is doing that they are forcing the airlines in large measure to keep the staffing close to where they have we should point out, you've seen a number of the airlines have 17, 20, 25,000 of employees who said we're taking unpaid leaves. they are cutting down on salary, maybe going a three day work week not like the airlines are whistling past the graveyard here they realize what's going on and cut costs dramatically they don't want to have layoffs either >> phil stay with us former spirit airlines ceo and current jetblue ceo, ben baldanza >> great to be here. good morning >> what do you think about these packages, the loans and the grants that have been given? what's your take >> i think they are two different things the grants are about keeping

employment up. almost an expense report for an employee the airline pays the employees and then shows the government that they made those payments and the government will repay them back for a period of time and a cap that they put on the loans are different. it's a form of liquidity that some airlines will take. some won't take the loans. and it's not really clear who will do what until kbhoe twe knt the terms will be. the loan will be comparing that to their own liquidity on hand, to their other source of liquidity if they have any, and what are the terms of this government loan versus other options they may have. >> what's the situation for spirit i realize you can't say everything but asa member of the board of directors, what do you think spirit is likely to do >> again, i'm not on the board of directors of spirit so i can't speak to what they are

doing. >> i'm sorry, jetblue. >> i can't speak specifically to what jetblue is doing obviously as a board director. what i can say is the industry as a whole like phil said is very active and very proactive here airlines are cutting flights where they are not generating cash from those flights. they are cutting out all discretionary cash spending. they are offering time off to employees who might want to take it they are looking at ways to lower payroll costs even with the grants for example, paying people their minimum time than overtime the industry is very actively doing what it needs to do, deferring delivery, not flying flights that would lose cash, cutting discretionary spending and i think that's the right thing. >> do you think that this will change americans' behavior in terms of their willingness to fly, even once this whole issue has gotten through >> well, that's a big question

and i think there is probably something to that. you know, as we're all learning, as we shelter-in-place and see where you are and you see where i am, we're all learning how we can do business maybe not as personal as we used to, i actually worry more about the business travel long term than the leisure travel i can see that at some point when we're all comfortable going to restaurants again and comfortable that gathering isn't going to be a risk for us at some point in the future, i can he is leisure travel coming back strong and full. you don't want -- you're not going take your vacation through zoom or skype, right business travel i can see some permanent or some longer term lag to bring back business travel as businesses are learning how to do business remotely and learning it can work and learning that they can be quite productive even without some of the travel so that's my fear longer term.

what i hope for the industry, that the industry gets better about, about how it thinks about biological safety. the industry has done a really good job of safety as it relates to airplane flying and not having -- not hurting people through flying and things. but this idea of being clean and being biologically safe and how we sanitize our services and how we train our people to one how to do that well and how customers can be comfortable in the airport and airplane environment is something that i think all airlines will have to step up more to do and that may become part of our future just like after 9/11 security changed. >> ben, this is phil lebeau. jetblue is downgrade and american in part talking about the environment. they don't believe traffic returns to pre-outbleak levels until mid-2021 what's your best estimate when

you say we've fully recovered. what's your sense? >> that's a tough one. the way i see at any time second quarter is gone from economic standpoint the third quarter is going be very difficult as you know, phil, to fill an airplane you don't fill it overnight you have to have that booking curve. four to six weeks before the flight starts you have to have very active bookings if the airline wants to fly full in the fourth quarter it has to be booking aggressively in august and september, and i'm not sure that i see that right now. i think the fourth quarter of this year has a better chance to be more normal i don't mean as high as last year and i don't mean sort of at full levels but the fourth quarter this year is the first quarter that the airlines can think that maybe there can be some semblance of positive cash flow and a sign that things are coming back.

the report that said no full traffic until the middle of next year i'm not sure what they are looking at to say that that sounds far to he me maybe it won't by the fall i certainly think it's the fourth quarter at the earliest, maybe it does go into the mid. next year. >> ben what duco you think of spirit's decision it won't be flying flights into northeast area, new york, new jersey and connecticut. is that a move you would have made if you were still the ceo there? >> it's pure economic answer i think like phil said nobody is flying in or out of those airports right now other than triage kind of people. and so airlines don't want to fly flights that are going to lose cash for them in this situation every airline entered this situation with a certain strength in their balance sheet, with a certain amount of cash they know when they come out of

this they want to be as strong as they possibly can be after months and months of very low revenue and low traffic. and the way to make that happen is to lose the least amount of cash as possible in that time. so when spirit cancels flights into new york, hartford and places like that it's because they don't see anybody traveling there. so they are saying we can save moore cash by saving the airplanes. it's an economic decision. i don't get the sense they are making a political statement or a social statement at all. i think if we can make money we'll go there if not, we're not. >> great ben, thank you for your time today. good to see you. >> great to see you. thank you and stay safe. >> you too. >> a covid-19 vaccine may be fort coming from an unusual source frank holland joins us from british american tobacco >> reporter: british american

tobacco announcing today it's a covid-19 vaccine using tobacco leaves this is an image of the plants that are being cultivated as part of that effort at kentucky bio processing british american tobacco says the vaccine is undergoing pre-clinical testing that means i want has not been tested on humans the company says it has the potential to be ready as soon as june of this year. with the right partners and support from government agencies could it be possible to produce 1 possible 3 million vaccines per week producing vaccine with tobacco is faster and safer. tobacco plants can't hold pat pathogens. the company said this vaccine has the potential to be effective in a single dose

british american tobacco says they will produce this vaccine own a nonprofit basis. the company said they are engaged with the food and drug administration we've reached out to the fda, no response 2014 they developed an ebola treatment using tobacco leaves zmap was a treatment not a vaccine bp this covid-19 vaccine still not in human trials there's questions when the company can get data from testing on humans that's needed to make this vaccine available for use by june. back over to you >> thanks, frank when we return a lot more on "squawk" we'll talk to alaska senator dan sullivan and what the collapse in ioil prices means for his state and more we'll do that right after the break. it's a thirteen-hour flight, that's not a weekend trip.

fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪

breaking news. futures are deep in the red on the first trading day of the second quarter coronavirus battering stocks and so far in 2020 the dow just had its worst quarter in more than 30 years a dire warning from the government trump administration says that between 100,000 and 240,000 deaths are possible in america even with aggressive social distancing this hour we'll speak with former fda commissioner dr. scott gottlieb on the fight that lies ahead cnbc breaking coverage on the pandemic continues right now

good morning i'm andrew ross sorkin along with becky quick and concern this morning right here on "squawk box" take a look at u.s. equity futures. we're in the red across the board. dow will open down 800 points. s&p 500 looking to open up down by 92 points and nasdaq down 235 points also show you what's going on in terms of the ten year note treasuries, ten year is at .602 and we should mention what's happening in europe. european markets, the dax down 4% then you're looking at, this is where things ended up in asia today the nikkei off 4.5%, hang seng off 2% and shanghai composite off by half a percent. joe, over to you thanks, andrew

crude oil coming off its worst quarter ever wti lost two-thirds of its value since the first of the year. the coronavirus devastated oil demand and saudi arabia is fighting with russia and other producers for market share we're just above 20 right now. joining us senator dan sullivan, republican from alaska says here you're a republican of alaska, senator. anyway you are that's your party. you are from that state. among the larger oil producing states in the united states and, obviously you're dealing with this and other things as well. senator, can we start with just your view of the phase three legislation that you voted for and i guess implementing it effectively and quickly is something that we need to do and we can just take that for granted. >> sure, joe you know, you're exactly right

what we're able to do here in the senate, 96 to zero by the way was pass a very important piece of legislation, bringing liquidity to small business, the broader market, help to american families, a surge of resources for our hospitals and front line workers and the health care profession but you're right this bill isn't going to be perfect. there's mistakes in it the key now sim-- is implementation i'm working with the treasury department, small business association and others to make sure it's implemented well and as quickly as possible to get these resources to americans in my state, all over the country everybody needs it >> yeah. the phase four, is that something to consider or infrastructure we heard the president talked about zero infrastructure. would you make sure that it's focused on completing phase

three in terms of implementation or should we think about the next phase at this point >> i actually had a good chat with the president a couple of days ago about phase four and in particular the infrastructure component. i think we in the senate should start working on that. no offense to the speaker of the house but i don't think she should have the pen on this. one reason why the care act moved quickly -- we have to fix parts of phase three people who weren't covered but it should include infrastructure the president is very supportive of that. it should also include this issue of bringing back manufacturing and our supply chains back to this country. that's a very bipartisan issue right now. we're recognizing how vulnerable we are with pharmaceuticals and medical supplies and even these issues, this issue of being floated about, you know, war bonds, things like buy risk

bonds and all americans will have a role to play. if we can do things like that i think there's a lot of bipartisan support get going on this. i've talked to a number of republican and democratic senators but i think we should start moving on it and i'm certainly supportive of that >> what can you tell us about one of your great industries up in alaska, the energy industry what can you tell us about how the industry is responding to this in your state, and efforts maybe to put a floor on this with the saudis and some time of alliance with the saudis that i think at this point is on the back burner suggested by the white house but at this point i guess we got a lot of other things we're focusing on what's the state of things >> well, look, you talked about the demand shock with regard to the markets because of this energy markets, because of the pandemic but the saudis have really brought in a supply shock at

exactly the wrong time i think these kind of crises really make it clear who your friends and who aren't your friends. who your friends and who aren't your friends i've led an effort with a number of senators, 13 of us wrote to the crown prince and fold up with a conference call bheegt the ambassador and, you know, this was a really frank discussion that i essentially said look the entire strategic relationship from my perspective, all the senators who were on that letter and conference call with the ambassador have been strong supporters of the u.s.-saudi relationship that's going to change if the saudis don't start playing a more constructive role with regard to energy markets, particularly when our country, my constituents, constituents all over the country need that support. you know, this isn't just an economic issue or energy issue, joe it's a national security issue with regard to the

importance of our energy sector and, you know, one of the things i said to the ambassador is, you know, we've been there for you first gulf war, saddam hussein is getting ready to roll through your country it wasn't the saudi military that stopped him they are quite weak. first marine addition, 2nd airborne americans died in that war and they need to step up or the strategic relationship will change senator cramer of north dakota and i have a bill to remove troops, all of our troops, all of our missile defense systems from the kingdom of saudi arabia, that bill will pass. so we're not bluffing here if they don't start playing a more constructive role you'll see a break in the long term strategic relationship the choice will be up to the saudis but they must start playing a more constructive role or we'll bring our lunch in the u.s. senate and congress to bear on this relationship

>> senator, i see where you're standing and you're in d.c do you think we need to make provisions for more virtual government at this point how are you feeling about your safety and, you know, the age of the average senator probably puts a lot of those people in a high-risk group for coronavirus. what do you think we ought to do about that do you feel safe do your colleagues feel safe >> look, i mean as you may have heard one of my colleague, rand paul has tested positive there's a number of members of the house who have tested positive but i think, you know, in many ways i think our duty station is here the governors across the country are doing a good job and we voted on the cares act i went to the floor at the very end after that vote and made some remarks saying look, the one thing we know about this issue it's changing minute by minute.

hour-by-hour the senate needs toe be ready o respond. there's a lot more americans, front line workers more at arriving than we are here in congress congress needs to be here ready, not going home for a month, american people need to see us ready to take more action. but i do think we need to consider things like, you know, in an emergency situation some kind of remote voting. wouldn't last long i know it would undermine certain traditions, long-standing traditions in the senator, but there's a bill that would do the this. i'm a co-sponsor of that bill. think we need to think about that i think we need to show the american p.m. we're here, ready for action, not on recess for a month when the whole country is dealing with one of the biggest most unprecedented crises we've had since our founding

>> i can imagine that alaska, i don't know if it's a false sense of security but vast distances, how is it different for what the governor of alaska is trying to affect there in terms of a virus? i guess it doesn't get warm enough -- that's one of the thing we're all waiting for down here in the lower 48 i don't know if you count hawaii warmer weather will help if you're in alaska you don't have that benefit. the population is solo, opposite of new york city, i would think. what's the state right now >> look, i would say, every state has its own unique challenges our governor, his team, they are doing a good job our delegation, congressional delegation, we're working hand in glove with our elected leaders. what i like to say one team, one fight. that's what we call it in the marine corps that's what we're doing in alaska

that's really what we're doing as a nation overall. we have our own challenges in alaska every state has been dealing with these issues of challenges on equipment and we're starting to get cases we've had a few deaths already and, you know, particularly our alaskan native communities, we have over 200 villages not connected by roads those communities have struggled in the past, the spanish flu over 100 years ago devastated and i mean devastated a lot of these communities. so there's some concern there. but alaskans are pulling together, strongly we had 2,500 volunteers committed to start sewing masks, things like that we're very resilient, tough people we'll get through this much stronger, tougher and more resilient but will take a lot of self-sacrifice whether in alaska or across our nation and we're seeing that. that's very heartening >> senator, thank you. and such a pleasure to have you

with a normal camera and no delay. thank you for make the effort to get in front of us, senator. hope to see you again soon >> thanks. stay healthy, everybody. good to be back on the show. >> thanks, senator all right. when we come back some breaking jobs data. adp's march look at private payroll is out forecast is for a loss of 125,000 positions. we'll have that data for you next when cnbc's breaking news coverage continues take a look at u.s. equity futures. first grading day of the month and quarter and so far a lot of red. dow futures are implied to open down by 890 points about the weakest we've seen s&p futures down by 100 points nasdaq down by 265

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all right. march adp numbers just coming out. let's get to steve liesman steve? >> reporter: becky, hi we're look at the march adp numbers. i'm double check are we at 8:15 here. i assume we are. down by 27,000 and better than the expectation. even in the adp report they acknowledge it's not reflecting the reality of what's going on in the economy for two reasons this covers the week of march 8th through the 14th or the week that includes the 12th and which is not a lot of firings that happened in the economy. we know after that and i'll show the data on that in just a second but also that there may be people who are left on the payrolls even though they are on

the payrolls and not being paid. let's go through there's some information here that might be useful to viewers here there's the nonfarm payrolls estimate of minus 10,000 again not going pick up what's happening in the economy look at it by business side. down 90,000 for small business and up 7,000 for medium and large business that's going reflect the way this is going to go that small business will be the first to shed workers here. and be hit the hardest and let go of their workers at the very beginning here large business may be able to hold on to some workers a little bit longer then looking by industry, big declines for trade and transport, construction. leisure hospitality, especially. they are going to be among the hardest hit. education, if there's a saving grace sway weird phrase to use in this context they are up by 48,000 now let's look at the unemployment claims data that we have which showed the 3.1

million last week the estimate for about the same this week that's 6 million so that is 6.2, 6.3 unemployed, continuing claims because remember the weekly unemployment claims is addition to those who are getting claims that corresponded back in 2009 when you reached that level with about a 10% unemployment rate. it gets worse here oxford economics out with their report saying in april the data could show a 20 million decline in workers and that compared back to '09, guys. the worst level of unemployment was 15 million so hopefully this ends up being more temporary but certainly it's gearing up to be more severe in terms of unemployment, at least in the initial stages of this. >> okay. when we come back a lot more new

measurements on just how much we're watching tv and streaming as government and medical leaders tell americans to stay home i imagine you can guess the answer but some interesting details in there former fda commissioner dr. got g -- scott gottlieb will give us his take that 100,000240,000 americans could die from the coronavirus. we're red across the board the dow will open down 850 ints say tuned to cnbc breaking coverage of the coronavirus pandemic we're back right after this. why do things that are supposed to make life easier sometimes feel so complicated? ibm watson is different. it's ai that works on any cloud to help your business tackle problems... from building smarter cars to predicting sales trends to improving customer service... without slowing you down.

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planning for the future is about more than just money. let equitable be your guide. a. welcome back to "squawk box" as you might expect with millions of americans staying home tv viewing is way up but the coronavirus is also hitting the ad spending world pretty hard and putting the media industry in a tough spot

julie boorstin has more on that. >> reporter: andrew, that's right. the media giants are one pressure from a dramatic pull back in ad spending. the pause of all live events and closure of movie theaters and theme parks outlines the benefit from the rise in tv ratings and of streaming at home the seven major media companies warned coronavirus would have meaningful impact on their results. disney, comcast, at&t, fox, viacom, sony and discovery all issuing those warns. it's worth noting a number of analysts do see long term opportunities in these companies. all of these companies will see some benefit from an increase in streaming and tv time at home but in primetime tv viewing increased by 10% the week of march 16th from the prior week these companies are suffering from the loss of box office revenue as well as advertisers, many of them pausing their spending netflix, on the other hand, is benefiting from people hunkering down at home dramatically.

nielsen reporting streaming increased 22% march 16th from the prior week market share before 30% of all streaming minutes. hurt the most in the media space is the live event business which is right now non-existent. theater companies which are fully shuttered right now. the news publishing industry is also feeling a pinch with major category, major advertising categories such as travel disappearing and brands being concerned about putting their ads next to coronavirus content. we've seen a number of publishers doing layoffs and limiting the number of days that they are publishing their papers guys, back over to you >> thank you for that. one quick question for you before we go, which is the streamers look like they are beneficiaries right now but we haven't gotten into a situation where we've seen whether layoffs

and other things like that will pull back on streamers and whether people may have binged in certain cases through all of the content on certain platform that don't have the kind of library that netflix does. what's the expectation come next month? >> reporter: well, look it's interesting because of course we have the launch of a bunch of new service. in april we'll have the lunch of quby now one might argue what you want is really long form contend because people are at home you have hbo max launching in may as well as the roll out of peacock, nbc universal service that's supposed to be fully rolled out by this summer. be interesting to see whether these new services which will have free trial periods be particularly appealing because there will be new content. so there might be a shift over to these services. analysts are mixed on netflix. some say it will be harder for netflix to expand overseas but maybe people will pay $15 or

$13 a month for their standard packages is worth it but i think it will be really interesting to see as these companies, these media companies have, to you know, worry about producing additional content depends on how long the coronavirus lasts in terms of impact on shutting down all production which is what has happened right now >> all right thank you for that we'll continue this conversation to look at the virus' growing impact on the media industry joining us this morning is rich greenfield good morning to you, rich. maybe you can help us with that last question which is right now we haven't seen a drop-off, obviously on the streamers but, you know, we will get to a point where discretionary income is going to be harder to come by and the question is who is at risk >> look, i think it's sort of -- when you think about recession

or economic difficulties, you know, earlier you were talking about layoffs especially small business layoffs that you were discussing, that becky was talking to people will be out of jobs small businesses will be hurting. there's no doubt that people are going to be looking to cutback you know, i think, though, you have to think about the realities that inhome entertainment has been exceptionally resilient. if you go back to prior recessions, post-9/11, 2008-2009 time period, entertainment, in-home entertainment has been resilient. people are at home more. people are watching more tv. let's be clear, the shift in more watching of tv is primarily in the older demographics. 18 to 49s they are still declining and that's probably because there's no sports and i think sports a big draw of why you turn on the tv without sports, often you don't turn on the sv now and move towards streaming.

my gut is at least during the pandemic you actually see a slow down in cord cutting as people are using their tvs more in general. streaming services benefit dramatically as you come out of this i wouldn't be surprised if cord cutting reaccelerated as people are looking to save money. i don't think anybody want as satellite installer or cable installer coming in. to cut their service once you've gotten into the habit of binging -- >> what do you make of the advertising piece of this, because you look at companies like cbs viacom. market cap on cbs viacom today is somewhere in the range of $8 billion which is almost unimaginable >> advertising is going to be really tough you know, my guess is when you think about the tv side of the equation, we went through over the last 12 months we were using data from ispot tv

they showed us out of the top 60 advertisers, 12 of them are car companies that's going to be tough coming into -- if other in a meaningful recession that's going bet pared back 11 of the top 60 is quick serve restaurants. that will bounce back quickly. car part of this equation and we went back to 2008 and 2009 and the data we saw showed car advertising spend was down 20%, 25%. look there's categories that will increase spending dramatically think about the events calendar, once can you go to movie theaters once there are concerts again and i have no idea when that will be, but there looks like right now the stacking of events from kentucky derby to french open once we start opening up again the advertising tied to that will be very helpful to these media companies but it's going to be a tough next 12 months

i wouldn't be surprised if dividends got cut across the board. >> rich, what's your prognosis on at&t? i know we were talking about the streaming service max coming up in the next month and a half now. that's a company that does have a lot of debt on its balance sheet. >> look, my partner covers at&t. if you look at the warner media side of the business, obviously the film side of the business is going to be beat up pretty badly. right now they are scheduled to put out wonder woman now in august but let's be honest andrew do you think you're sending your kids or yourself to a movie theater in august. it's hard to imagine we'll go into a packed movie theater in august i don't know when it will be okay to go into a movie theater. what universal is doing trying trolls, to release a movie inside the home, all movie theaters may have to rethink how

they reach consumers warner media more broadly everyone is trapped at home. julie just went through the statistics how much people are streaming. comcast put out some stats something similar in terms of overall streaming bandwidth for audio. i can't understand hbo max is not lunching today how much would we be watching "friends" right now if it was available to binge on hbo max. you pay $15 for hbo, you pay $15 for hbo max. i can figure out what they are waiting for. >> were you a believer this is a step change in the film industry that's something very controversial among theaters, theater owners who are worried this is the moment, this moment will be a watershed and basically the media companies and studios will rip up the entire model but the question is you rip that model up, there's a lot of zeros that used to be attached to that

model. >> look you're asking an incredibly important question, andrew and the problem is, it all depends on what you assume for how we recover here. you know, if we're back to going to movie theaters in september and can put movies out great, we all would love that. i geese i'm just concerned if you think about blockbuster films -- films that are supposed to do $1 to $2 billion "my land," "black widow. when you think about those billion dollar films they require hundred plus million people to go watch them in theater, if average ticket price is around $10. if we're talking about social distancing in they he terrifies where it's every other row and every third seat you can't do a billion dollars in box office. the question becomes if you don't want to go and stained line at a movie theater in

september or october at a packed friday night for ""mulan." disney plus instead of costing 6.99, maybe it needs cost $15, $20 and movies come out on the day. if it takes longer for people feel comfortable in a movie they are, they have to make some hard contested conventions over the next 12 months >> okay. rich greenfield, always good to talk to you. you have some very smart perspective on all of this stay safe and healthy out there. >> tuesday, andrew thank you for having me. >> joe, over to you. >> coming up, former fda commissioner, dr. scott gottlieb on the spread of the coronavirus in the united states the country is closing in on

850,000 cases. april fools' day has been cancelled. we'll be right back.

>> welcome back. macy's shares are falling this morning. the company is not going to be in the s&p 500 any more, moving to the s&p small cap 600 being replaced by carrier global, a spinoff of united technologies the change will happen prior to the opening on monday. coronavirus infections number more than 847,000 and nearly 200,000 of those are in the united states. death toll here in america has topped 4,000 people. but the white house says that number could rise to as many as 240,000 people, even if the current social distancing is maintained at a news conference yesterday president trump warned that the weeks to come will be difficult. >> it's absolutely critical for the american people to follow the guidelines for the next 30

days it's a matter of life and death. >> joining us right now to talk about the coronavirus pandemic and what happens next in the united states is former fda commission her dr. scott gottlieb he's a cnbc contributor and also on the boards of both pfizer and illumina i know we've had these numbers floating around out there but took on a new significance yesterday when you heard the president talk about it, you heard dr. fauci talk about those numbers. 240,000 even if we maintain social distancing. what has to happen can we bend the curve effectively even if that number is the model, if we're doing everything we're supposed to be doing by staying at home >> i still we think. those things are hard to model it's hard to bake in the mitigation things we're elm employing. san francisco looks like they are coming down in their curve

seattle hasn't come up their curve even though they had a large clufrter and did a lot o things wrong early new york may peak next week. new york does seem to suggest signs of slowing infection these approaches do work cities like chicago and boston and philadelphia and detroit, which are going to have large outbreaks, they implemented some of these measures earlier than other cities and hopefully have an impact and be reflected in the numbers. the wild card here and the decision point on whether or not we'll have a bad outcome that dr. fauci and dr. birx talked about is what states like texas and florida do that haven't taken aggressive steps even now, they are large states, large urban areas that have very dense populations and if theydon't get more aggressive then we could be on the cusp of some of those bad outcomes if those states start acting aggressively right now we can keep it well below those kinds

of models. >> if that's the case why do you think the administration hasn't taken a firmer stance with the governor of florida and pushed him to take steps more seriously. >> the administration has outlined firm guidelines there's a tradition in this country both under culture and law that a lot of public health decision-making is left to state and the local authorities. federal government has limited authority to impose public health restrictions on states. you can quarantine potentially a city under the quarantine rule under federal law if you declare a national disaster you have certain authorities. but they are limited authorities. these decisions are left up to states and governors and mayors to make for their lollipop allocation for good reasons in a lot of cases. there's a lot of variability in tools. you want local officials to be able to adapt noers their lollipop allocation. i don't think the federal government will step in with much firmer hand on these states

other than perhaps increased jaw boning it's up to these governors i don't think you'll see anything more from the federal government trying to force these states to take these actions they've said what they've said i don't understand why those governors have not acted more forcefully right now especially a state like florida florida has a large epidemic under way. multiple hospital spots. they probably were heavily seeded some time in february this was not new yorkers coming down in the last two weeks this was infection that started to spread early in february and now they have large clusters all growing up simultaneously. looking a lot like new york only two weeks behind they should be taking much firmer action like miami and elsewhere in that state. >> they have an older population too. >> exactly they have an older population. they have nursing homes down there highly vulnerable. they have a break as well. they have a warming climate. about 80 and 90 degrees there and getting humid and the heat

and humidity will be somewhat of a backstop against this virus but not a complete backstop. this is a very novel virus still transfer in warm weather they should take advantage of the lucky break this starts to spread as they were warming and start implementing aggressive measures they can get themselves out of this i do worry about this state and other large states that haven't been as aggressive if they don't take aggressive action soon i think the numbers dr. fauci and dr. birx talked about could come to fruition if all the states take this seriously in the next three to four weeks we can come out with a better outcome >> yesterday when we started hearing the cdc is considering changing its guidelines in terms of recommending that everybody wear masks when they leave their house. dr. fauci kind of referenced this yesterday and said they are looking at that.

>> dr. gottlieb we lost becky. she was asking you a smart question about masks and the need or not to be wearing them we were told originally that we shouldn't be wearing them. was that right >> well, look, i think when we made that recommendation early on not to wear masks was because this wasn't really epidemic in the united states. you're likely coming into contact with the virus was low the absolutely risk you faced there were thousands of cases in new york not tens of thousands of case. now that it's epidemic in certain cities mask has a value. mask can protect you does provide incremental protection if you wear it right. problem with the mask sometimes they are more likely to adjust it and touch their face. the bigger benefit from the mask is if you have infection, it dramatically reduces your risk of transmitting that infection

on a population basis if you require people to wear masks it could cut down on transmission you don't need an n-95 maverick. you can use a cotton maverick and provide some measure of benefit. what you want to do is outline the kind of masks consumers can wear that won't eat into the scarce supply hospitals have china is clamping down on shipments of ppe to united states they are holding upsome shipments. i think it could get even tough inferior the chinese don't loosen the restrictions they now seem to be imposing on manufacturers in that country. unfortunately, we outsourced a lot of our manufacturing of these to china and now we're dependent on them. >> on the mask front do you think that part of the issue here in terms of when you look at the success rate of what's taking place in japan or south korea was the masks, was the culture of wearing masks when you felt ill, even just wearing

them on public transport and whether this is really so, such a strong virus that you really can get it in the air? that's that story about the chorus, this group in seattle that said that nobody touched anything but they sang in the same room for some period of time and there's a view now they got it literally in the air. >> well, i think a lot more of the traps inferior of this virus is through touching contaminated surfaces and droplet transmission when you see the conference in boston where 70 people got infected from a single sick individual that suggests there was a contaminated surface hard to envision one person being close enough in proximit to 70 people that's what requires to be airborne is spread more efficiently through the air. mask will provide benefit

regardless and we're at the point ever telling people they have to shelter-in-place, imposing a requirement they have to wear a mask when they go out isn't that burdensome. whether or not the maverick is what made a difference in countries like hong kong, singapore which had a much more favorable experience with this virus than europe and the united states is going to have, whether or not the masks made a difference is unclear. it probably made some difference but it's hard to its tolerate effect of the masks because they did a lot of things right in those countries as well. >> scott, really quickly you said earlier it looks like it could peak in new york next week when we spoke with you on earlier days you thought name next couple of days. do things look better overnight in new york? >> well, i was saying the next couple of weeks last week. i'm consistent, next week would be about another week on that. when you look at the data you do see some suggestion that cases are slowing. italy started to slow, then a

couple of days where it peaked back up and then people thought well maybe it's not coming down. now there seems tube definitive trend. not a straight line down sort of aaged line as we plateau. you do start to see some slowing in new york and plateauing going to be a slow transition. the mitigation steps actually have the effect of elongating that epidemic. hopefully going into next week you start to see a slowing when we talked about this, hospitalizations will lag because time to hospitalization is a week after infection and deaths will lag tragically as well because times of death is three to six weeks you'll see the burden on the health care system continue to increase in new york well after the point which new infections have peaked and started to decline. >> okay. dr. scott gottlieb, always good to see you

appreciate it and i know we'll be talking to you later this week when we come back a lot more on "squawk" what to watch ahead of the opening bell as investors look to kick off the second quarter take a shares of microsoft broader market sold off in the first quarter, microsoft ended in the black but by how much? a razor thin .00006% we have to call it flat. take a look at futures they are not flat. in the red with the dow looking it will open down 755 point. nasdaq to open down 220 points and s&p 500 down by 87 points. the limit down numbers, take a look at them write them down. wee ght ck'rriba after this.

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. welcome back to box.

dow will open down 780 points right now. s&p 500 look topping down about 90 points. nasdaq looking to open down 227 points marginally better than where we were but still we're course nine red. i want to get over to cnbc headquarters where jim cramer is waiting. >> i changed my view on what dr. scott gottlieb said. i like dr. fauci and last night i felt as bad as i could i listened to dr. scott gottlieb, he puts it in perspective. these numbers have to be in perspective they have to do with the curve and do with where we are. these two gentlemen are awesome in explaining it the market is down largely because of what was said last night with president trump and dr. fauci. the market may have been marked up pretty badly on monday.

all in all the parade of earnings will not be that great. they are crushing banks, andrew off the fact that banks in europe decided they dug their dividends basically. is what happens we find out that things are not so good. when we get to techs, xas, that bad day. florida, bad day we have to get away from that. we have to focus on good franchises, one day we'll be a better, stronger nation and you should be thinking about those stocks on the way down, rather than reacting to what pennsylvania is up to when it comes to applications. >> i think the question i'd ask you this morning is sort of what we were talking with mohamed about earlier. he is saying if you have cash, hold your cash, cash is still king he thinks this may have more to go for those investors who don't buy individual stocks, they're

in a 401(k), or mutual funds, etfs, various indexes where you're not as selective as you might be, jim, the way you are, what do you think that investor should do? >> that investor obeys what mohamed says, he is very, very good, but also recognize there's no perfect time to buy i default to what peter lynch said, there's only a couple days a year where you get your big gains. i mail that with what warren buffett says down hideously from when warren buffett was on that says to me, let's say you have $5,000 that you wanted to commit this year for your ira, why not commit a quarter of it a quarter of it two days from now when maybe we get a better feel or may the end of the day, you get closing price. i think that's how you have to

invest you certainly weren't buying at the top. >> right >> come on, will you smile or something? >> i'm trying. >> jim -- >> this thing is so hard for all i know, you're reacting and liking it. i wish people knew at home how hard it was to have no cross talk, no able to tell whether you guys are down or up. it's a bummer. >> jim, i want -- one thing you said a lot, i hold on to it like -- i hope it's not grasping at straws, when push comes to shove and necessity being the mother of invention, i look at j & j. i don't know who it will be. these -- american ingenuity. >> amen. >> i'm hopeful i'm hopeful. i don't know whether you can get a vaccine by the next cycle. i don't know whether that's possible, but necessity is the mother of invention. we have the greatest people and greatest minds i still think we come out of

this on the other side and -- >> how do we know -- joe, you know science how do we know they won't come up with something anti-viral in 1950, people said polio will be with us for the rest of our lives, don't go out. i got measles, my whole class got measles in 48 hours. they don't get measles anymore, except the moron inge people who are anti-vaccine -- i did that for my twitter followers -- but how about if we come up with something? is everybody static? regeneron and gilead were two of the best quarters in the s&p why? they're out there 24/7 working so is roche. they're trying to cut things down i think that we can't be static about america. we can be static about how bad things are, but not static about

ingenuity. that's what we're good at. not the chinese. us the chinese are great at locking everybody down great at putting people in houses, great at being a toll t government, great. we are american ingenuity. that makes me optimistic >> love the optimism, jim. love it. we'll see you in just a couple of minutes on "squawk on the street." then we should tell you, tonight you don't want to miss jim's interview, tom executives from cisco, pvh and nestle. a huge lineup that is not-to-miss television becky? >> thank you when we come back on "squawk box," we'll get you prepped pore the trading day ahead. it's the start of the second quarter. and you can get a full recap of everything that's been happening with the markets fast-moving developments and the latest coronavirus headlines on cnbc's nightly special, tonight at 7:00

p.m. eastern time. stay tuned we'll be right back. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today.

we are just a little over a half hour now away from the opening bell and the official start of the second quarter. our next guest is trying to gauge how intense the market impact from the coronavirus is going to be. joining us now is jim keenan jim kennon chief investment officer and co-head of credit at blackrock i think i get a lot of your mail sometimes. i get a lot of stuff addressed to joe keenan here jim, thank you for joining us. you point out that three things will shape what happens in terms of the coronavirus impact on the

markets. obviously number one is scientific and medical data. two and three are fiscal policy and monetary policy. in your view, have we done a pretty good job on the latter two and are now just need to be more focused on the first? on the former? >> yeah, i think obviously the -- in the last two weeks, the size and magnitude you've seen the moves not just with the u.s. but globally speaking to reduce some of the systemic risk in the system has played out you've seen some recovery in the assets there as you point out, over the next three, six, nine months we'll be dealing with the uncertainty around the virus and what fiscal response will be to bridge the architecture, the economy and stimulate on the back end. that's going to be different by region and industry to restart this economy

>> you do point out one positive, i guess, the overhang and leverage in the leverage fins market a finance market are lower now than in the 2008 crisis. you think it's possible the market's ability to recover might be greater than it was 12 years ago? >> yeah. i think the issues are different. we're going go through a severe economic downturn here you know, it's one of these dynamics that in order to reduce the humanitarian crisis, we have to actually shut down economic activity further leverage in the short-term is going to look higher as you see the significant earnings hit what you'll see right now, you started to see this post the u.s.-fed stepping in and the government cares act, you started to see the markets open back up to try to provide liquidity to companies to try to withstand this volatile period

of time or the draw down in earnings last month alone, it's as bad as it was, the highest investment grade issuance we've seen, about $265 initially >> all right jim, we have to end it there to get to cramer and the guys appreciate it. we'll have you back and talk more about this. i'll toss it back to andrew. i think we're finished >> we are finished thanks, guys we'll see everybody tomorrow cnbc's special coverage continues right now with the gang from "squawk on the street." good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber coming to you live from separate locations this morning futures weaker than we've seen in several sessions as the white house warns americans to brace for a very painful few weeks as iter