braking news stocks looking to rebound. the dow shedding nearly 1,000 points president trump considering halting domestic flights between certain coronavirus hot spots as the coronavirus outbreak hits a new and grim milestone we'll get the latest of unemployment numbers one sector reelgally hard hit is retail

and amazon facing new pressures over protecting warehouse workers still on the job servicing all of us amid the outbreak apple making a much-needed donations to epicenter of this country's outbreak this is thursday, april 2, 2020. you are watching cnbc. >> good morning. let's get right to the markets stock futures you can see are green indicating a rise of about 341 for the dow, s&p up by 35 and the nasdaq is implied up around 100 points. it would be good but for the fact that we saw some steep losses yesterday to begin the second quarter all three major indices down nearly 4.5% with losses

accelerating before the closing bell take a look at the bond market we are seeing some move in today as well. a hair below 6.1%. two-year below 0.234%. turning now to oil, a huge move higher a surge. wti up 9%. ice brent up 9% as well. this is after president trump said he expected saudi and russia to enter agreement soon they called for a challenging issue for the oil markets. getting to the markets worldwide.

matt taylor is in singapore. we'll begin with you >> reporter: it was a mixed session for asia pacific markets from that lead we inherited. among the best performance followed by china. japanese market lower off by around 1%. softbank shares higher after ending that ten tore to buy wework hong kong adding gains as well hsbc shares down as well after the bank of england ordered those banks to scrap their dividends. australia and new zealand both trading weaker at the close. quiet today in asia. back to you. >> to the early trade now in european forces, julianna tatelbaum is standing by in london >> good morning.

european markets are on the trend. all four of the regions are trading. we saw the stoxx 600 dip below the flat line trading negative we have recouped those losses and then some. this comes after a steep selloff yesterday. today, little in the way of company communication. we are watching the latest virus numbers come through one sector that stands out here to your point of oil being a key feature is the oil sector. oil and gas are very strong this morning. bp as well basic resources, auto and banks

after the selloff we saw we have travel and leisure down. utilities is lagging down 1.7% back to you. >> thank you very much the death toll in the united states from coronavirus has surpassed 5,000 as the number of cases tops 200,000 and global infections approach the 1 million mark frank has the latest >> white house advisor says the virus vaccine trial is on target giving the outlook during yesterday's press briefing he says the potential vaccine which the country has fast tracked with moderna is still 12 to 15 months away.

the president is also looking at rail travel between cities and added he does not support grounding all domestic flights the decision will be made soon the treasury secretary has reversed course for new rules forgetting stimulus checks you will not have to file tax returns to receive payment this would affect seniors and overturn guidance issued indicating a solid open here for the s&p and nasdaq joining me now, erin gibbs joining us from one of your remote locations let's talk about how exactly investors and people are navigating this kind of a market >> we have seen more defensive

plays in consumer staples. they've been holding up a little better in these markets. another couple areas we've seen are health care and interesting enough, information technology we are reverting to new technologies and that seems to be one area that is helping. before investors think about jumping into the market and doing the stock picks. a massive attraction in the

third and fourth quarters. if we don't get the spread contained, this could turn into the third and fourth quarter the massive rise of employment will take multiple months to recover. most have let go of the idea of a v-shaped recovery. we really need to look at this as a much longer term type of recovery we may not see more positive news until 2021. as we go to q1 earnings, they may or may not make the headlines depending on what is happening with the virus and the spread i think that will be another negative where investors will get disappointing news of just how bad is will look for companies over the next several

quarters potentially third and fourth quarter as well. >> sure. you laid out a fairly conservative base-cased scenario how are you going to position according to that view >> right unfortunately, wall street isn't always forward looking even if we have negative or contracting growth for me, i still see another leg down with the stock market when you look at the investor behavior, there does tend be a

bottom when it comes to that low. that target keeps lowering if we do see more positive news around vaccines and testing, for me, that is a sign we are near the bottom for some disappointments and until we've seen containment, there is more vul ner blt to the down side.

>> a look at how china is looking to get back to business plus new york city's mayor looks for medical supplies in the u.s. epicenter there and as u.s. citizens look to get back to work some time details about the child-care crisis that could be waiting for them ahead ever since we've gone mobile on the now platform,

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what you are seeing there is a live shot of hong kong markets there shutting down for the day. foggy there. >> after months of forced closures with coronavirus fears still lingering, the return to normal may take longer than expected. eunice yoon has more from beijing. >> beijing hairstylist is back at work after more than two months at home because of the pandemic her salon was shut in late january. with her income down more than 14%. >> my clients look like rock stars when they see me with long

hair and i'm happy revenues are down. these financial problems are common for businesses across the economy. >> when the virus first hit, branding manager went to his staff to negotiate double-digit pay cuts >> i was looking at numbers ever day and looking at the cash flow and the projection of our client's budget. we might need to do a temporary salary adjustment. he fears conditions will remain uncertain for a year >> clients are slowly coming back >> at the salon, no hope my customers won't get an extra two or three hair cuts she's holding off on big spending plans until the situation ends

>> they have been encouraging local officials to set an example to go out to restaurants and shops to show everyone now it is getting safer. >> as the u.s. faces crisis, what they look like they've been through, they are trying to get back to work what lessons are we cleaning from them in the united states >> one of the lessons is to build up that confidence a lot of people here are nervous that the epidemic cannot be contained. one way they are trying to shore

up at the ball or telling people that they are trying to build up that level of confidence one of the big concerns is that the epidemic is not being contained, they are alreadying innocencives to get people to spend until they are truly convinced that the epidemic will be contained, there is a concern that there is plenty of lost income they've lost two months of income they don't know whether there could be another round where they could lose their jobs or wages. that level of uncertainty still lingers.

>> that problem faces many across the world at this point still on deck, amazon facing mounting pressure over conditions in its warehouses details on who is calling for changes now. >> announcer: today's big number, 38%. that is how much the russell 2000 is down from the all-time closing high the small caps extended their losses on wednesday, dropping 7% to everyone working to keep america strong, thank you. has stood strong through every dark hour and bright dawn our country has endured. it has seen the break in the clouds before anyone else. for the past 168 years, we've also stood by you,

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a live shot of times square new york city. normally at this time, it is rather sparse but even more so with shelter in place orders the epicenter of the coronavirus outbreak getting to the headlines with frances rivera >> good morning to you the number of coronavirus cases in new york skyrockets the mayor says the city will need over 3 million n 95 masks and 400 ventilators by sunday and more next week to treat the wave of patients lawmakers, unions and others are urging jeff bezos to enact safer

conditions and close facilities that a worker was found with the kr virus and reimburse the worker fired for organizing a protest >> the shelter in place orders will last at least two weeks retail gets hammered amid the virus. former toys "r" us ceo breaks down that road ahead as we go to break, take a look at shares of amc entertainment shares were up more than 2%

following a report that the company's lenders have hired lawyers for restructuring talks. to everyone working to keep america strong, thank you. ♪ ♪ 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. ♪ ♪ but right now, the world needs all the good that we can do.

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a new samsung galaxy s20 ultra. that's simple. easy. awesome. go to xfinitymobile.com today. stocks look posed to rebound. president trump potentially grounding flights between coronavirus hot spots. the latest on the new steps he's weighing and a potential daycare

dilemma taking shape breaking down challenges we may face following the outbreak. it is thursday, april 2, 2020. you are watching cnbc. >> welcome back to the show. let's get right to the markets stock futures are indicating a positive open. opening higher implied 335 points if these moves hold the s&p would open up by 32 and nasdaq up by about 90. that could be positive in any other day, however, looking at yesterday, they are trying to rebound after stocks posted very steep losses in the session to begin the second quarter trading. all three finished down nearly

4.5% and losses accelerated into the closing bell the dow finished down 973 points taking a look at the bond market now. two-year treasury benchmark yields below 0.3%. 10-year around .605% turning now to what is happening with oil prices. after president trump said he expected saudi arabia and russia to reach a deal soon to end their oil price war. russian president putin called for a solution to quote/unquote challenging oil markets, both brent and wti up about 10% west texas intermediate the last trade there. early trade in europe now with julianna tatelbaum from london

>> good morning. european stocks are trading hire after a selloff yesterday. the main benchmark lost 3% yesterday. we are seeing green across the region we were trading in negative territory. dipping below the flat line. the german dax and the ftse. we have recouped and are now seeing green across the board here a lot of demand, oil and gas comes alongside here we have shell up more than 8% and bp up more than 6.5% beyond oil and gas, a mixed picture for oil and stock. you can see here, it is really split down the middle.

we have insurance, basic resources. at the bottom of the board, we have travel and leisure. a mixed picture eyeing the jobless report that may be the next direction here for the markets >> the latest here president trump is raising the possibility of grounding some domestic flights between cities that are deemed to be coronavirus hot spots. good morning, eamon. >> the president is clearly struggling with this decision suggesting that he doesn't want to close down all of the travel in the united states the president did say yesterday that he is looking at those hot spots. here is what he said i am looking at hot spots,

where flights are going into hot spots. some of those flights i didn't like from the beginning but closing every single flight, every single airline is a very rough decision but we arethinking about hot spots. >> meanwhile, we do know the president will be meeting at the white house with oil industry executives take a look at the list of companies coming to visit. exxon, chevron, ox dental, harold hamm, a lot of parts of the oil industry represented the oil industry badly hit by that dispute with saudi arabia and russia the president said that he thinks they can work out their pricing dispute that has been so badly impacting the industry he said, i think i know what i

can do to solve it he won't say what that was it is not clear whether the president has a plan of action in mind or if they wait to hear a number of rumors and options one of which would be putting tariffs on oil the president will wait and see where he lands >> it wasn't that long ago that we saw tweets talking about how oil prices were too high and consumers benefitted it appears that we've reached a tipping point and oil prices may have gone too low and it is threatening independence is there any indication at what levels does the president feel as though the oil market has been too badly hit and that

gasoline prices are too low? >> there is a calculation that below a certain point, u.s. shale and fraking are too competitive. below that level that industry is just on hold until prices come back the president said yesterday that he believes these low gas prices for consumers are effectively a tax cut. that's the way we've looked at it if you were spending $50 a week on gas and now you are spending $40 or $30, that's a ben fit to you. this situation is different. nobody is driving. i haven't started my car in a week i think a lot of people are in the same situation

you are getting that discount because like i went from $50 to zero this week >> for me, you know i commute here to new york i filled up for the first time in the past month. it is something we'll have to pay very, very close attention to eamon, thank you for that update we'll get the latest on the impact and what it is having on unemployment on the release of jobless claims economists expect another 3 million plus on top of the record 3.3 million some are estimating as much as $5 million in initial jobless gains. private payrolls were reduced by

27,000 jobs last month much concentrated in a category featuring retail one of the hardest hit industries hit the former chairman of toys "r" us and former vice chairman of target safe to say he has a pretty decent handle on retail. is this an unprecedented time for retail >> retail was already going through a revolution we had a group of retails that were doing great this situation is amplifying the success of those already winning. amazon tops the list, target, walmart, costco are doing okay

then the dollar stores because they provide the necessities people want every day. unfortunately, the virus is a gut flow to those already having trouble. department stores like macy's or jc pennies, all mall-based retailers. all of them are closed it is not where our heads are at right now. there is some doubt whether some of these will reopen they will face unbelievable stress >> it is interesting there is a big school of thought that says crises exacerbate existing trends. what is the path forward

is there any chance other struggling retailers can turn things around and get back to some kind of normal si >> for example, macy's is the strongest department store, there is no way they'll not have to down size after this and be a partial renaissance of what they were before. they are all focused on the internet now there is no way that can make up for what they are losing most of these like nordstrom was 30% internet before and have lost the 70% even though the 30% were up which i don't believe it is, then they've lost a vast majority of sales.

the one that can focus their internet arm the rest of them, they really won't. there will be significant changes and just the april if i indication the winners were winning more than the loosers were losing we'll get to a rebound before the season goes on >> speaking of retail, how quickly can we recover from the job standpoint >> i think quickly the world is going to be defined by the period before the virus and after. just as if this were a great war or like 9/11 or the great depression will will be a lot more logistics jobs that will be the hottest

profession on the planet not just retail but every sector jobs will be in different places there will be more delivery jobs no way people will go to restaurants in the future and sit more tightly packed. there will be more food delivered to home and prepared foods. there will be more jobs but different jobs >> seismic shifts across the economy. tune in tonight for the special look at the path forward for individual owners in the united states. the profit's host, shark tank's kevin o'leary and more

the picking the banks to oversee the bail out of the airline industry softbank has terminated the $3 billion wework tender despite the struggling work in china and civil and imalcrin investigations into the startup. we are back after this

welcome back, the death toll in the united states has surpassed 5,000 as the number of cases in this country overhaul tops 200,000 frank has the latest >> starting tomorrow, costco will limit the number of people that can enter the stores. only one person per card can be let in >> apple donates 1.9 million n95 masks to new york city >> and treasury department selects banks to advice on airline rescue including $50 billion to

passeninger, $8 billion to cargo, contractors and companies designated as essential to national security. thank you. on deck, stocks kicking off the worst session in two weeks seeing green across the board. as a reminder, markets are facing volatility. you can always watch or listen live on the cnbc app we are back in just a moment

welcome back vowing the u.s. will bounce back stronger than before for millions hoping to return to work, a key segment is hoping

bounce back. right now, it is daycare some laying off staff to cut costs and weather the storm. an industry trade group is sounding the alarm with 30% saying they will not survive a closure of more than two weeks without public investment and support to keep the lights on. >> joining me now, the ceo of primrose schools have you ever seen or contemplated anything like what we are seeing right now? >> never i've been in the industry 30 years. we've been through a couple of recessions but never like this the disruption to children,

families, teachers, the owners of the centers across the country. it is disheartening. >> how difficult has it become you employ a lot of people what has been the impact there families are sheltering in place but for the businesses, industry runs on a thin margin. the revenue that cover all expenses is disrupted. thank goodness, there are dollars to help them for those that have tried stay open, their ok pansy is down to 20%. those serving emergency responders and those in the medical field.

we are talking 3.5 million families with people working in the medical field trying to fight this because the states and have closed child care centers, states are under deep distress, help is not coming from the families or any other source >> do you feel as though you could, in today's environment, safety open up your child care centers for business >> in some communities, it depends on how significant, if it is at the peak. at primrose, we are monitoring the children taking temperatures.

hand washing constantly. the schools are closed and cleaned at night we have to balance the people that have to go to work. the food and the medical insta structure, police, fire, they have to have care for their children the need is there. we are all doing the best we can in a situation we never dreamt we'd have to face. >> we are going to get through this my old boss used to tell me, there is only one end of the world and this is not it how are you able to scale up so people can go back to work >> so we have 423 schools across the country. mostly in major cities we are fairly comfortable our facilities will survive. where we are really worried

about. over 6,000 child care centers we represent. so many of them are small business owners and not franchises they run on a very thin margin for them, the ability tosurviv this, we are really concerned. we had a shortage of child care before this ever started the concern will be can the small business, independent operator come back of course, the large organizations are looking for opportunities to get government funding. some of those sectors have not yet seen the funding they'll need >> i do know this early care is

more important than ever before. we need to do what we need to do to get back up and running thank you for joining us this morning. >> indicating a solid open higher weekly jobless claims. the forecast claims to hit 3.1 million and could go as high as 5 million joining me now, my guests. this is an interesting scenario.

what is the market already pricing in or expecting as a based case >> when we look at valuations, even with the correction we have seen from last week, we have a dismal case as we test against corporate earnings why is it i hear many say we could go down further in the market if the price is already being priced in. >> you said really well, the end of the world, this is not it a lot of investors are trying to get their arms around what this looks like just looking at stocks and it

indicates what the lows are for this market. when you step back and look at how washed out sentiments are. looking at individual stocks and yesterday's selloff, we are not seeing stocks sell below those we better start to see those stocks breaking low, if we are not going to get it, we are not going to get lower we are a buyer of these stocks here stresses there have been exacerbated. for part of the industry until now, are there signs that signal

to you that we could see more pain ahead >> one of those things is that it wasn't just about the fundamental valuation. there was a concern and anomaly about liquidity and function if we reverse it on what is priced in on what well exceeds what was realized. the step in to start to recognize the market function. compelling the spread wide about the 250 level it is a great in

the risk where we unfold >> what exactly are you buying >> right now, we think we need to continue to be overweight si sick cyclicals and health care. these little dips lean into the more distressed areas. look at something like a wing stop consumer has been historically the best performing areas. wing stop, dardin are the best names out there. nvidia look constructive

i'm not sure the leadership of this market has really changed this looks more like a shorter term dislocation i think we'll continue to see this power ahead in the market >> i'll toss one last question to each of you what is the risk that you see? >> i think the risk is, is that this period of downturn lasts longer the length as we look into the season other fundamental factors to ensure corporates can really weather this we know there will be down grades. >> and to you, what is the biggest risk >> given what we've seen,

investors don't get back involved and miss out on a great opportunity that could be a generational low >> cnbc's breaking coverage continues after this break shouldn't you pay less when you use less data? now you can. because xfinity mobile gives you more flexible data. you can choose to share data between lines, mix with unlimited, or switch it up at any time. all on the most reliable wireless network. which means you can save money without compromising on coverage. get more flexible data, the most reliable network,

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good morning the second quarter starting with the drop futures are pointing to a rebound today and oil is up about 10%. president trump considering halting domestic flights between coronavirus hot spots as the u.s. outbreak hits a grim milestone and a key with the

unemployment picture the impact of the pandemic of america. thursday, april 2, 2020. cnbc's coverage of breaking news continues now. good morning i'm becky quick along with joe kernen and andrew ross sorkin. we've been watching futures. things are a little better than yesterday. yesterday, the dow was down almost 1,000 points. the same for the s&p 500 and nasdaq all three of those under considerably pressure as people worry about what is coming in the weeks to come. you can see this morning, the dow futures are up 290 and nasdaq up about 53 right now also keeping an eye on the treasury market. more people rushing into treasuries has put