breaking news -- wall street in rally mode as president trump voices some hope over a, quote, leveling off of coronavirus cases in key united states hot spots. oil coming off its best week on record as one russian insider tells cnbc, saudi arabia and russia are very, very close to a deal we'll speak with rbc about that. and uk prime minister boris johnson checking himself into the hospital as a, quote, precautionary step ten days after testing positive for the

covid-19 virus it is monday, april 6, 2020. you are watching cnbc. good morning welcome to the show. i'm dominic chu live at cnbc headquarters dow futures pointing toward a surge at the opening bell. if all things hold true, we could see an 838-point gain for the dow jones industrial average, 101-point gain for the s&p 500 and 320-point gain for the nasdaq a big surge after down moves last week. also keeping an eye on the bond market as well we are seeing some movement there in terms of yields on benchmark u.s. treasury bonds and notes. two-year, 26 basis points or 0.26%. a tick higher there. ten-year benchmark treasury yields a hair over 65 basis

points, or 0.65% you can see sell off of government bonds, those yields rising crude also moving at least to the downside right now wti, $26.60 after logging its best week in history we'll have much more on that trade in a moment. we have team coverage from around the world to kick off your monday morning. julianna tatelbaum is standing by in our london news room with the early european trade nbc's tracie potts in washington, d.c. with the latest on the u.s. virus relief efforts and president trump's latest comments our own hadley gamble is live in abu dhabi with the latest on energy talks between the u.s. and saudi arabia and steve sedgwick has the latest on prime minister boris johnson and seema mody at cnbc global headquarters with all the latest news on the coronavirus.

julianna, we'll start with you and the european borsis. >> european markets are off to a strong start this comes after a fairly downbeat week last week when the stoxx 600 lost 0.60% investors in europe taking comfort in some of those numbers on the virus itself, coming out of some of the hardest hit countries over the weekend one number in particular investors are focusing on, italy reported its lowest daily death toll in two weeks over the weekend. encouraging signals but very early days we'll take a look at the sectors and see what the split looks like behind that 2.6% gain every sector trading higher. travel and leisure up and banks up 3.3%. oil and gas stocks are underperforming, up 2 mt. 0% as the oil price has floated around this morning let me take you to the best

single stocks and worst single stocks this morning. rolls-royce, hopefully we can get that board for you rolls-royce is up 14% today. the reason i want to highlight this, this is a company that's come out and slashed their dividend and withdrawn their guidance for the year and investors have cheered the move. a lot of debate whether companies should hold onto dividends. dom, back to you. >> julianna tatelbaum, thank you very much for that update from the european side of things. back home president trump expressing hope late last night that the u.s. is starting to see a, quote, leveling off of covid-19 cases in some of the country's biggest hot spots. he says the federal government has stockpiled around 29 million doses of the anti-malaria drug hydroxy chloroquine. while relief are still weeks away for many americans, president trump says he likes

the idea of sending even more reliefchecks in the coming months a very busy night for sure nbc's tracie potts with a breakdown of everything you need to know on the washington, d.c., front. good morning >> reporter: good morning. we're watching the number much cases. it's going to be a critical week for the coronavirus and a bit of a mixed bag because while some areas are getting worse, others are clearly improving. >> i see light at the end of the tunnel. >> reporter: with coronavirus cases expected to peak this week, the white house is hopeful. >> we're also hopeful to see a stabilization of cases along these large metro areas where the outbreak began. >> reporter: washington state is giving away ventilators. >> because we acted relatively early. >> reporter: in new york, most people hospitalized are going home. >> the number of deaths over the past few days has been dropping for the first time.

>> reporter: new hot spots are popping up in illinois, colorado, pennsylvania and washington, d.c. >> we are struggling to get it under control. >> reporter: it's a critical week health experts are warning americans to even avoid grocery stores and pharmacies. the federal government has millions of gloves and masks on the way. democrats are pushing president trump to appoint one person in charge of managing supplies. >> a senior military officer, a czar to be in charge of manufacturing and distribution and have the full authority of the president to send the materials where they're most needed. >> reporter: the white house is reportedly kering it the president says he's open to another relief package with money for infrastructure projects, that's money for people to get back to work. >> we know there's a constant eye being put on these hot

spots. is there any indication right now that the administration is moving in some ways to really bolster the testing effort we've heard from some medical experts right now that that could be the key, just identifying where those hot spots could pop up, not just those in existence right now. >> reporter: right one thing they're focusing on is the 15-minute test they're trying to turn out 50,000 more of those tests every week to try to identify want only more people but to identify whether people are infected with this virus more quickly. >> tracie potts, thank you for that update. for the latest on the coronavirus and the washington, d.c., response, thank you very much. sticking with the u.s. where more than 330,000 covid-19 cases have been reported thus far, one economic official is not ready to sound the alarm just yet despite estimates that the

country could see as many as 47 million people out of work by the end of this epidemic seema mody with that story. >> that's right. st. louis federal reserve president james bullard is pushing back on the idea that the u.s. economy is in a freefall on cbs "face the nation" yesterday. >> i would push back against the idea of the economy or the job market being in freefall we're asking people to stay home to invest in national health and we're asking them to use the unemployment insurance program in order to get the transfers they need to be able to pay bills while they're at home, while they're not able to work because health authorities are trying to get the virus under control. >> onto the banks. wells fargo says it's capping its participation in the u.s. government small business coronavirus rescue program at $10 billion due to regulatory constraints. the federal reserve in early 2018 asked wells fargo to keep

their assets low until it improved its governance and risk controls following a wave of sales practice scandals. the fda has given the green light to an experimental company from pharma mesoblast for patients with respiratory conditions and gilead science says it's rapidly expanding another coronavirus experimental drug >> seema mody, thank you for the updates on the coronavirus to the developing story in the oil patch, trying to trim some overnight losses after an opec plus meeting scheduled for today have been delayed until thursday that headline sending energy prices falling with u.s. benchmark crude prices down nearly 9%. in an interview on cnbc, the head of russia's sovereign wealth fund said despite the riff between the saudis and

russians, both countries are actually very, very close to a deal this as president trump says he's considering, quote, substantial tariffs if oil prices remain where they are today. hadley gamble joins us from aw e by with details on that. >> that's right. all the green on the screen last week getting wiped off oil prices back in the red it seems this titfor tat between saudi arabia and russia and even the united states is over, following the last coup of days where we saw the russians coming out and essentially pushing back on saudi arabia saying saudi arabia was the one standing in the middle and standing in front of getting a deal done. the saudis pushing back in the last 24 hours in a statement his royal highness saying what the russians had said was, quote, fully devoid of the truth and the withdrawal of the kingdom from the agreement is not correct. russia was the one that refused to get involved while the

kingdom and 22 other countries making up opec were trying to persuade the russians to make further cuts and extend the agreement. that took place yesterday. this morning i had the chance to catch up in an exclusive interview with the head of the rdif, one of the main architects of this russia/saudi arabia detente that's been growing since 2016 >> i think they're very, very close. if you look at the announcement president putin made on friday, he says russia is ready for 10 to 12 maybe even more million cut that is important for the markets. he talked about how important this oil deal is, so russia is committed. i think we came a long way with saudi arabia or came through difficulties many people doubt we do the first regional cut deal, we're able to succeed. i think we're much closer as many people think and i think the whole market understands this deal is important and it will bring lots of stability,

very important stability to the market and we are very close >> the head of the rdif, that's russia's direct investment fund. they got $10 billion to deploy in russian investment. they've basically been working with the saudis for quite a while now. one of the big questions everyone has going into the rest of the day is how quickly the saudis will respond and confirm they're ready to come to the table on thursday. >> we know a deal is in the works. we know thursday is when they'll get together to talk, opec and their partner countries. is there a notion that the number of barrels we're talking about is still in the realm of what president trump mentioned in his tweets, around that 10 to 15 million barrel per day or is there a different number being bandied about among oil-producing countries? >> this is the big question and this is the number everybody seems to be working off, at least so far you have to remember this has become such a bigger story than just the barrels per day this is a question about not

just market stability and putting a price under the floor of the market, but essentially what folks are saying to me, listen, we have so much oil out there, little demand and we don't have an idea of what that demand picture looks like and now we're having trouble finding storage for all this oil i'm hearing from folks in the ggc countries about the potential to shut off fields president trump and the economist you heard over the weekend saying when it comes to oil, it's not good for saudi arabia and the lower prices aren't good for the russians either think about extraction costs saudi arabia, it's cheaper than any other country when it comes to extraction. analysts say saudi arabia could be the last man standing on this. >> hadley gamble with the latest on the oil patch when we come back on the show, much more on the global oil price war and what role the u.s. should play in the negotiations rbc's helima croft is coming up later in the show. why our next guest says the

buy signals are lighting up. we head back out to london for the latest on boris johnson and his fight with the coronavirus ten days in for the uk prime minister. a very busy hour still ahead when cnbc returns. we cannot do all the good that the world needs. but right now, the world needs all the good that we can do. to everyone working to keep america strong, thank you. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere.

looking at futures we are pointing to solid gains at the opening bell. the dow jones would open up by

nearly 800 points. the s&p by 95 and nasdaq up by 305. after last week they posted third weekly decline out of the past four. the dow falling 2.5% with the s&p 500 and the nasdaq dropping around 2% each for more i'm joined by founder and ceo of kk financial, jeff kilburg. let's talk about whether or not this market action today is making you feel slightly more positive and constructive in the medium to longer term? >> well, good morning, dom i'm more optimistic short term it's interesting to see the reversal we saw last week. the s&p was down 2.5%. overnight action we're up nearly 4% look at the vix, down nearly under 40 it was above 85 two weeks ago. this volatility, despite the fact it's still elevated, is subdued. a lot of people are probably raising their eyebrows,

scratching their head saying, is this a bear market rally i don't think it is. last friday we reduced our bond allocation we have a 30% position to agg. we're fully allocated for the sectors we like. we want to see consistency, a couple consecutive days of continuing diminishing numbers of the coronavirus by and large, we're opts mystic. >> you mentioned the tactical models you use are pointing to more bullish sentiment ahead i'm curious what exactly those model inputs are that are telling you from a tactical short-term perspective that things are more constructive what data points point you to that bullish tone? >> those relative strength componenxoe

components point to what the equity markets are doing last week we saw a signal that put us in a defensive posture, took that 30% position in agg. last night after the close we ran those numbers and all of a sudden you see fixed income fall out of favor from a technical perspective. this is pure xs and os this is leaning on technicals short term. >> let's talk about if you are constructive, if people are seeing green on the screen, what exactly should they be doing today and where exactly should they be deploying their assets or capital >> that's a great question i think you have to understand the sectors working prior to the coronavirus. you have to understand the sectors hitting in 2019. we talk about tech, we talk about semi and also about medical devices. medical devices are obviously getting a lot of attention, ihi. we're looking at biotech, ibb, some health care etfs we like. there are also single stock opportunities. we're looking for essential

names. despite the fact we saw indiscriminate selling over the last couple of weeks, i think there's price dislocation in some of these names. these are names you have to understand blue chip names, johnson & johnson, target, citi, and even cloud name like crm. they could have more cap to. the upside due to the fact they were oversold in the past few weeks. >> thanks for those thoughts with upside pressure building today. still on deck for the show from macs to masks, what apple is doing to help the urgent medical supply shortfall amid ayuncoronavirus outbreak st ted you're watching cnbc

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but right now, the world needs all the good that we can do. to everyone working to keep america strong, thank you. edward jones is it'swell aware of that.et. which is why we're ready to listen. and ready to help you find opportunity. so. let's talk. edward jones. it's time for investing to feel individual.

snoou welcome back british prime minister boris johnson remains in a london hospital after being admitted over the weekend with, quote/unquote, persist ept symptoms of the coronavirus after testing positive for the illness some ten days ago. steve sedgwick joins us from london the prime minister is vowing to remain on the job saying this was just a precautionary step. can you give us more on what exactly he is dealing with right now. >> reporter: absolutely. we're outside st. thomas' hospital, one of the big national hospitals in london it's 1.4 miles away from downing street and there has been speculation, including from "the

times" that yesterday evening at around 8:00 p.m. the prime minister was driven here it was not a hospital emergency admission. he didn't come in in an ambulance. he was driven across the thames from downing street to st. thomas for a series of precautionary tests. he had coronavirus found ten days ago, the 27th of march, and since then has hadpersistent symptoms including a higher temperature as well. the prime minister has gone for a series of precautionary steps. according to number 10 downing street, he remains in charge of the government the housing minister has said this morning he's heard the prime minister is doing well and remains in charge. that said, the foreign secretary, also the first secretary of state, dominic raab chaired a coronavirus meeting and we heard from the u.s. president trump saying last

night at the start of his white house presser that president trump and boris johnson were great friends and boris johnson was a great gentleman and great leader and wished him well we haven't heard any more on the condition of the prime minister in central london. >> steve, i i want to pivot to the other side of the governance there, and that is the royal family queen elizabeth made a lot of waves. she made a very rare appearance to speak and address the nation about what's happening right now. what exactly was the impetus behind that and how much are britons taking from the queen's speech as we head into this week >> reporter: it's very interesting. at 8:00 p.m. last night her majesty made a speech. it was a rare message, a rallying call from the queen saying the uk will succeed and she praised coming together. she said, we will meet again some of our older viewers on

cnbc might notice that's taken from a line of vera lynn who was the force's sweetheart during second world war there were lots of parallels between the blitz of 1940-41 and the current crisis from her majesty last night >> steve sedgwick with the latest on boris johnson and the royal family's address to the nation. positive signs out of new york amid the coronavirus outbreak there state officials now reporting the first drop in daily deaths this as the state and new york city gear up for a very tough week ahead phillip mena is live in the news room with more >> good morning. this nation is bracing for its darkest week yet in the coronavirus outbreak president trump says 1,000 medical military personnel will be deployed to new york city to fight the pandemic at the u.s. epicenter. the fresh wave of military doctors, nurses and health care

workers will help treat the surge of patients in the city. the reinforcements come as mayor de blasio says the city only has enough life-saving ventilators, needing 1,000 over the next week over 135 are left in stock some troubling news about the spread of the virus. bronx zoo says a tiger tested positive for covid-19 and six other big cats are showing symptoms they believe they were exposed by an asymptomatic zookeeper in march. all of those cats are expected to recover back to you. >> thank you very much for the latest there. still to come on the show, very, very close to a deal that's what one russian official is telling cnbc about the progress in the oil sector and talks among partner countries and opec we'll see what rbc's helima croft thinks about that. it's a challenging market.

edward jones is well aware of that. which is why we're ready to listen. and ready to help you find opportunity. so. let's talk. edward jones. it's time for investing to feel individual. aand we're here for you -ry day fespecially now,rs. doing everything possible to keep you connected. through the resilience of our network and people... we can keep learning, keep sharing, keep watching, and most of all, keep together. it's the job we've always done... it is the job we will always do.

stocks look to try kick off a positive week. president trump warning this country's most challenging days of the coronavirus are still ahead. the latest on his administration's response to the outbreak oil under pressure yet again as saudi arabia and russia work to strike a production cut deal it is monday, april 6, 2020.

you are watching cnbc. welcome back to the show i'm dominic chu at cnbc global headquarters. dow futures are pointing to a surge at the opening bell. right now we're watching the dow jones open up by almost 850 points at this stage if these moves hold into regular cash equities trading later this morning, 9:00 a.m. eastern time. 102-point gain for the s&p and 300 plus to the positive for nasdaq keeping an eye on the bond market as well we are seeing prices for treasury bond and notes fall today pushing up interest rates. two-year treasury notes a hair above 0.26% and ten-year just

above 0.65 we'll have much more on the oil trade in a moment but for now, wti u.s. crude prices down 3%, $27.54 the last trade there. let's go worldwide and check overnight trade in asia. china was dark for national day of mourning, but the rest of asia very much positive. the kospi in south korea up 4% the australian asx200, 4% gains as well. nikkei in japan up 4%. big gains for the major markets. in european trading we're seeing some positivity play out there as well. we're off some of the best levels of the session. the german dax up 4% the cac in france up 3.5%. the ftse 100 in the uk up 2% as well back to the energy markets oil trying to shave losses after an opec plus meeting for today

had been delayed until thursday. that sent energy prices falling with brent falling over the weekend. the head of russia's sovereign wealth fund said despite the riff between saudis and russians both countries are, quote, very, very close to a deal this as president trump says he's considering, quote, substantial tariffs if oil prices remain where they are today. we have team coverage this morning. our eamon javers is in washington, d.c., following the president's comments with me via skype, rbc head of global strategis, helima croft eamon, let's talk about what's happening with coronavirus and the oil markets as well. >> dom, on oil, we know a number of the oil ceos, a number of the big guys went into the meeting at the white house friday with a

goal of telling the president they don't want him to impose tariffs on saudi oil the president was considering that they were concerned that was the way he was going to go we know he went into that meeting with the idea of talking him out of it. over the weekend the president talking about tariffs, but only conditionally. here's what he said. >> the oil price stays the way it is because people that really want to see it go up -- when i -- we want to save a great industry we built a great industry in this country if they don't get along, i would do that, yeah, i would do tariffs. very substantial tariffs, because we're independent now. we have our own oil. if i did the tariffs we would be saying we don't want foreign oil. >> the president holding off on tariffs for now but saying if the russians and the saudis can't come to some agreement on prices, he would put tariffs in

place because he views it, dom, as saving an american industry back over to you >> eamon, this is key. over the course of the past several months and maybe the last couple of years, at numerous points president trump has talked about the idea that oil prices, fuel prices for americans, were too high there has now been a tipping point where now they are too low. what exactly is the white house's position, do you think, going forward with these talks is there an equilibrium price they're trying to get to what is the thinking within the white house right now? >> the price they want to get to is to make american oil competitive again. remember those fracing and shale guys can't make money below a certain price point. the white house needs the price of oil to be above that point to make that american industry possible and all of those jobs that go along with it. that's what the president's talking about. he has said recently that he

views this huge decline in the price of oil and the price of gas at the pump as something akin to a tax cut for americans. but in this bizarre situation we're in right now where almost nobody in the country is going anywhere or doing anything because of the coronavirus, you don't have the demand at all on that side for oil and gas. those of us who would normally be commuting back and forth are instead standing in our living rooms doing our jobs the price of oil, doesn't matter what it is, it could still be zero and i wouldn't be buying any. that dynamic is not playing out economically the way it normally would. >> thank you for that update from the white house and the oil markets there. let's bring in helima croft. the u.s. is a key player in this because as we talk about a possible deal for production cuts between opec and its partner countries, namely russia, is there any thought now of what they're thinking with regard to the u.s. participating in this? it seems to me as though if the

u.s. still pumps crude and does not participate in production cuts, it really doesn't matter for saudi arabia and russia? >> russia's position is essentially now, we would like the u.s. to join any production cut agreement. what people were looking for on friday from president trump is any signal he would support some proposals put forward by, for example, the ceo of pioneer, scott sheffield, texas railroad commissioner, to potentially shut down some u.s. production in a coordinated way in order to have u.s. participation in an agreement. president trump essentially came out and said, i'm still in favor of the free market determining production so, right now that is a big hurdle to getting an agreement president trump talks about a 10 to 15 million barrel a day production cut without some u.s. participation, it's very hard to see how we get that type of number. opec is looking at countries like norway, canada, brazil to participate in a bigger can you the. again, it looks like u.s.

participation is essential in getting this across the finish line the meeting with opec and other opec countries will take place on thursday. all eyes will be on whether there's some type of u.s. participation in these talks >>. >> it seems odd, maybe funny for some, ironic, we're talking about free markets driving prices in those markets and yet we're talking about a coordinated effort by a cartel, you know, a real cartel, to try to curtail or manipulate prices based upon production. as we talk about moving forward is there any sense free markets could come to the rescue if, say, large reserves in the u.s. or china or anywhere else, step up to buy oil at these prices rather than cut off the supply side of things what exactly is the argument there? >> we do see buying in china

we do see signs of recovery in china. we had the proposal from president trump to use strategic petroleum here to basically store extra oil so we don't hit tank tops. the problem is even with the trump administration's proposal, that buys you a couple weeks at current price levels, given demand situation as well, we're likely to run out of storage some time this year. somebody will shut in if prices drop to the teens or single digits producers will shut in it's a question of which producer will shut in their oil. what's so interesting is president trump spent the three years he was in office, the first three years, criticizing opec, saying we want every barrel on the market now that saudi arabia is putting every barrel on the market, nobody is really happy with the current state of affairs i think there's an interesting contradiction we're now asking saudi arabia and russia so coordinate in terms of rolling back production. >> how important or how reliable is the oil market in terms of a

leading indicator for economic activity i ask because this has been argued as a situation where if the economy of not just the u.s., china, everywhere else gets up and running later on this year, that almost all of that oil demand, that fuel demand, my gasoline demand as a commuter, comes roaring back what exactly is it in the oil price right now that is saying that we're not going to bounce back some time, say, two, three, four, five months from now >> the big issue right now is we're building inventories part of the reason it's so essential to get some type of production cut agreement is right now you have a bathtub that is overflowing because the drain is clogged because we don't have demand. but we have the key producers like saudi arabia and russia and uae pushing additional barrels into the market and causing that tub to overflow. we're building these huge inventories. we actually do need to get a cut to bring down inventories. even if demand starts to come back, we'll have to work off

those inventories to get prices sustainably higher >> just how low, before we let you go, just how low could we see world benchmark crude prices go and intermediate fall before we could see a bottoming out process really start to take hold >> we want to watch what happens on thursday. not only do we have this big meeting but the saudis will set their official selling price their decision to slash their osps in march was a big signal that a price war was commencing. if they slash those osps on thursday because we don't get an agreement, we continue with this price war, we could certainly drop into the teens. >> helima croft with the dire outlook there given the possible opec virtual meetings thursday. apple steps up the fight to help the coronavirus -- or fight against the coronavirus. plus, the travel industry already reeling from the outbreak, now facing liquidity

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welcome back to cnbc president trump and his administration are warning the upcoming week will be the toughest yet in america's coronavirus outbreak with more than 300,000 cases in this

country and nearly 10,000 deaths seema mody with the latest >> that's right. president trump also spent part of his weekend calling on india to release more of a drug to combat covid-19. according to reports, the president spoke with india's prime minister modi on saturday calling him to release orders of hydroxycloer quinn, an anti-malaria drug. india tightened export restrictions on the drug to combat rising infections. apple has announced it will make much needed medical gear for those on the front lines of the fight. ceo tim cook announced they would produce face shields he says apple ames to make 1 million a week. american airlines is the first company to dramatically slash flights in the new york airport. they cut 90% of its flights to the hot spot following moves by

jetblue. jfk and newark airports are among the biggest in the country. >> those troubles for the airlines, the latest in the mounting list of challenges the travel industry is facing as a whole as a result of this coronavirus outbreak a number of these companies are taking steps to aaddress their liquidity concerns what can you tell us about what exactly travel and leisure is doing right now to stay in business. >> that's a great point because the coronavirus has certainly brought the travel industry to a halt with the latest number showing hotel occupancy plunging 68% to 90% as they report high levels of cancellations for the first half of 2020 that's pushed a majority of companies in the travel and leisure space to address liquidity concerns in many times, maxing out credit limits on existing lines marriott drew down the remaining $2 billion under $4.5 billion to shore up liquidity the cruise industry facing its

most challenging moment yet after being left out of the latest stimulus bill cruise lines are racing to tap as much credit as possible carnival, a great example of that, going to the bond market last week. successfully raising over $4 billion, at a haiku upon analysts at sun trust say they would not be surprised if royal caribbean and norwegian cruise line followed carnival's lead and went to the debt market as well timing will be key here. credit rating agency s&p has downgraded carnival and royal last week, their credit ratings. >> we know that these -- many travel companies have been left out of the bailouts. they've been raising debt. is there any sense as a hole they could tap equity markets as well or are the stock prices they're trading at just way too depressed to want to go out there and sell stock to raise money? >> that's a great point. carnival, in fact, including the money it sought from the debt

market had a common offering as well that seemed to be an option, especially for the cruise lines that had already taken out additional credit lines to drum up and bolster cash on their balance sheet. there really isn't any clarity as to when the cruise industry will kick start or resume sailings given the concerns around the coronavirus in the meantime, the cruise lines have to step up measures in addition to the cruise lines and what could happen next, we're watching the online travel operators that are the aggregators for this industry. i spoke with booking holding ceo last week and he doesn't see a change until next year. >> seema with the latest, thank you. on deck for the show, futures pointing to substantial gains at the opening bell. what our own jim cramer is saying about the potentially solid start to the new trading week as markets continue to face volatility, you can always watch or listen to us live on the cnbc app.

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downgrade to underperform from a prior neutral. we do that to raise price target to 95. zoom shares down 6.5% in the premarket trade in an otherwise up tape. looking at futures, the u.s. markets are coming off another

volatile trading week. the dow would open up by 900 points if these moves hold into the opening bell the s&p would rise by 107. jim cramer offering his thoughts last night on twitter saying, quote, new pattern of sunday night futures, a rally, or is it just stupid because oil might be retreating more important than a plateau or just traders with nothing to do and time on their hands. that coming from our very own jim cramer, who i'm sure is watching this show right now joining me on the cnbc news line is chad morganlander, washington crossing advisers. perhaps we'll use jim cramer's comments to gets into my first question which is, how positive can we be about the implied 900-point gain for the dow on today's opening bell appears as though we are having

problems with his audio feed let's get a check the markets. we want to point out the fact that we had a down week last week the s&p 500 and nasdaq and dow roughly down 2% to 2.5%. we'll add gains to erase some losses in today's trading. let's see if we can bring back chad morgan lander can you hear me now? >> yes, i can. >> the first question, can we believe the market bounce this morning? >> so, the market is moving and it's path-dependent on the developments of the virus. what you heard overnight was some modest improvement in the trends within the pandemic in europe as well as in the tri-state area that emboldened risk-taking in the short run. >> we're watching, then, many experts and portfolio managers tie their investment decision to the trajectory, the curves, if you will, of various measures in

the coronavirus outbreak, whether it's cases per day, the total number of deaths, the total number of new cases. what exactly are you watching for right now that will make you more constructive on markets >> there are three things. one, you have to look at the high frequency data talking about the mobility of american and as well across the globe will there be improvement with business activity as well as the outbreak trends. also look at u.s. monetary policy as that comes online, that can embolden and at least decelerate the volatility within the credit markets. fiscal stimulus here in the united states. and also keep a careful eye on the europeans. if they move towards more of a solidarity when it comes to economic activity and fiscal stimulus, that can at least improve the stability within the financial system. >> given that backdrop you just

mentioned and what you're watching, what exactly are you doing in terms of figuring out opportunities? where should money be deployed is this a situation where you're raising cash on rallies? what exactly goes on the shopping list given the fact you're watching all of those things >> several weeks ago as this credit dislocation started to accelerate, my partner and i started to aggressively lean into individual equity risk. as we started to see long-term forecast of returns for value stocks gap higher. currently right now our estimate as long-term forecast return of 9% for the value index over the next five, seven and ten years we are looking at consumer staples, for example, consumer discretionary, as well as some s that couldtrials as real actually be kept and held in

one's portfolio for two to three years. >> so you mentioned those industry groups. what exactly are you looking for within those value-oriented type names? what factors stand out to you as the reason why you would choose one stock over another >> what we're looking at are individual companies that don't have a lot of debt on their balance sheet, that are well diversified and highly predictable, with great earnings potential three to five years out. look at companies like, and we've been purchasing visa, for example, nike, walmart, hormel, pepsi and procter & gamble all of those companies i'm listing here have very little debt you don't have to be concerned about liquidity issues if this continues over the course of the next three to six months on the credit side. these are companies that will be paying a very steady dividend and with high predictability for their earnings several years

out. >> chad morganlander, thank you for bringing us those ideas and thoughts we appreciate it as always. that does it for our show this morning let's check out the futures market we're poised for nearly a 900-point gain on the dow at eng ll awesome internet. it's more than just fast. it keeps all your devices running smoothly. with built-in security that protects your kids... ...no matter what they're up to. it protects your info... ...and gives you 24/7 peace of mind... ...that if it's connected, it's protected.

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good morning stocks set to soar after president trump said the outbreak is leveling off in some key spots. a big move in crude overnight after new signs of optimism for a deal between russia and saudi arabia. a new study says at least one quarter of the u.s. economy is now idle. we'll talk about what the recovery could look like it's monday, april 6, 2020 "squawk box" begins right now.

good morning i'm becky quick along with andrew ross sorkin and joe kernen the last week, you were looking at a down week for the market. the dow was down by 2.7%, the s&p was down by 2% and the nasdaq was down by 1.7%. this morning you're looking at big green arrows we've been watching the futures and it looks like the dow is implied to open up by 865 points s&p futures up by just up over 100 points and the nasdaq up by 321. keeping an eye on the treasury market and right now it looks like the yield on the ten-year sitting at 0.66% big story for the markets, really, crude oil prices they've been rebounding overnight after coming under a little pressure. the wti was down by 9.2% on the news of a delay of an opec meeting. but then bouncing back