on the action you've seen over the last two days? >> shorting because i think once we exhaust the short covering, the sobriety will hit in that we've done a lot of damage to a lot of companies i talk to my friends in the credit space, the high yield space is inundated with new members of the high yield community with all these downgrades and companies that are in really bad shape. it's going to take a while to work through these balance sheets, and there's a tremendous uncertainty on when we'll restart the economy and what that means if you're a gaming company, when will we restart? if you're a restaurant company, when will we restart the most optimistic, hey, end of this month people go back to work, cuomo -- >> michael, i'm sorry, we're over we have to come back to you very soon we do appreciate your time with us today folks that does it for us. we'll see you back here tomorrow right now our continuing coverage starts with "squawk on the street."

good tuesday morning i'm carl quintanilla with david faber and jim cramer coming to you live from separate locations this morning coming off that 7% rally and futures build as optimism about flattening the curve goes into a second day more talk of another round of congressional stimulus oil up about 2%, as we await the opec plus meeting and exxon slashes capex about 30%. mnuchin and kudlow on the tape this morning saying the white house looking to reopen the economy as soon as health experts give the green light but that's going to be met with skepticism today >> look, i've got to hand it to them in terms of trying to make it so there's enough money for small and medium sized business to get open. they're doing it there's no limit to what they'll give i think the community banks, no limit to what they'll lend i really like that the other side though is the customer and we've got to find a way for the customer to feel confident i know i will feel continue if i dent when i see everybody else

wearing a green band like me, which says i've been tested and i'm good red band, hey, listen, i don't have it. it's tougher to get into a nightclub than it is to get into a store. i want to be sure the person next to me will not give me cov covid. i want to make sure the person who works at the store is wearing a mask i don't hear these things yet. but the money is there the money is a key component so when the customer does come back, there will be some doors open >> is there any way -- this jpmorgan note from yesterday, we see a reopening -- a limited reopening of the economy in one to two weeks they believe we already hit peak hospitalization. we'll hit peak death in about a week is there a way do that before this license to work is created? >> i read that piece i said, well, you know what? that person's impression of what life is like in america. and that's a very bullish impression that's an impression that just

says ignore what people say about the elmhurst hospital. ignore there's not enough ppe. ignore that we have one 747 from benioff come in and there's not a lot of stuff beside that i want more. i want abbott labs just started the test just started can we wait a couple weeks to see how many people have this? i love the optimism of that piece, but i'm not going out -- i'm not going out and i'm not going to see my wife, i'm not going to see the kids because i don't feel confident i'm so glad that fella feels confident. that's a younger person who doesn't have kids, doesn't realize the danger of seeing your kids because they, by the way, they're immune and having a great time so i love the optimism i don't share it >> yeah. you know, jim and carl, it's funny.

there's a dissidence that i hear during the course of the day after the show when i'm just making phone calls and it's between those who run businesses and the optimism reflected in the stock market. not to say that the market won't end up being right, jim. i'm sure you hear this as well but even if we do go back to work, it is not as though -- and people will maybe get back in their cars, so there will be increased demand for oil, for example. but they're not going to be going to lunch they won't be getting on planes. they won't be going to conferences. they won't be going out for drinks they won't go to restaurants they won't go to concerts. maybe they'll go to the office and back if the conditions you talked about are met the optimism reflected in the stock market right now over the last few days is not what i'm hearing from those who run businesses, given their expectations for how long it will take to get this economy really back to a level of

activity that we once saw. >> but, david, if you knew there was a -- when you came out on the corner of the apartment, your apartment, there would be a test you could find out whether you -- the fact maybe you have a cold or whether you have covid wouldn't you feel like, you know what, today will be a decent day. >> yes >> that's what i want. >> yes we talked about that many people who are writing about what it will take to reopen the economy in a real way talk about ubiquitous testing the way you are, antivirals that are immediately available for anybody who tests positive but i don't know when that is, jim. is that this summer? is that in the fall? are we going to hopefully get past the peak very soon and see a lower level of infection only to see sort of occasional blips up i don't know >> olive garden which is darden, up almost 10% today. i say to myself was olive garden oversold because we're further along in terms of covid or do

people think, you know what, i'm back in business now, you wait in line to get into an olive garden, maybe not this weekend you wait in line i may be waiting in line with people i don't have six people of distance with i get in the tables are too close i say to myself i don't want to risk it. i think america doesn't want to risk it. at the same time i recognize the stock market -- david, you saw how much money carnival was able to raise in the debt market, even though they got a criminal indictment in australia. you saw that slack came in, the enemy of microsoft, and was wanting 600, they get 700. there's a happy days are here wall street impression versus home saying can i get a mask how do i get a mask in i like it i love optimism. i know larry kudlow loves optimism i don't like getting sick. i don't want to get sick

carl, i don't want to be sick. to me -- >> all right, so -- >> all that for the unlimited rolls you get at olive garden. >> to the degree that businesses can adjust and find some middle ground -- kroger is a great example where they are now going to limit foot traffic to 50% of international building code capacity they're talking about directional aisles where you only go one way down an aisle. no one coming at you the other way. we're beginning to see business try to figure out at least early versions of a solution >> but we had the labor department secretary on. i want ocesha to say before anyf these people go to work, we have to take your temperature and you have to wear a mask. i won't mention the grocery store i go to and somebody about have covid i'm glad i stocked up. the only thing i found that was positive is samsung says profits should top expectations. top expectations

this is an earnings story. this is not a story about how america feels. by the way, can we go back to thursday when we were all thinking about why aren't there more ventilators now here we're thinking about, you know what? i cannot wait to take a southwest air to houston i can wait my daughter is in spain. would i love to see her? yeah but she has to go to an airport, then another airport, and then our airport. you know what? that could be a death sentence for all i know >> so when do we get to that point, jim listen, to your -- it's well taken on your point, which is things have gotten better and we're talking about a reopening in a way that we weren't a few days ago because we're hoping that the peak has been hit in places like new york and perhaps the rest of the country. obviously depends on region. so this point. janet yellen talked about it yesterday. richard fisher talked about it

yesterday on our air a lot of the ceos that i speak to, they're looking more for the "u" as opposed to the "v." >> i think you get the "v" when regeneron announces they have an antiviral and we can get the abbott test, that is like the home pregnancy test, that was their term the home pregnancy-like test which tells us if we have covid, coupled with the fact that we saw what happens in china which can slowly open for business, would make it seem like some of the prices are too low but there are businesses that i don't think are going to come back immediately i had the ceo of zoom on last night. i know he's under pressure because his servers are in china. you often talk about you don't even want to take your cell phone to china the servers are in china, but the cocktail party i don't know it wasn't so bad but the work at home -- geez if i were -- if everything were

better, i would say, guys, if you need to come in, you can come in but continue to work at home work at home, maybe when you work at home, you go to home depot and paint the place. i think some of the way we live is changing right now. carl, i don't know whether you feel like it, but i kind of don't want to see as many people -- talking about contact. if i go to this place, i might have too much contact. i went and got a bagel today, a pumpernickel bagel, some guy is like four feet from me four feet! get with the program >> we've taken the number of daily social contacts from what, in the old days we would probably come in contact with 100 people 50 people? it's gone to zero, maybe one or two. >> i had five. >> yeah. you mentioned zoom, which has had a crazy week bans by spacex, new york city schools, today it's the taiwan government the downgrade from credit

suisse jim talked to the ceo last night on "mad money. >> we already enforce security settings don't share your meeting i.d. with others, and if you're in the meeting, lock the meeting. we have a lot of security built in it's not like you can -- you can go further with the security settings you can learn more about our best practice. >> jim, he's been pretty candid about the mistake he made. >> boy. >> eric, if anything, he's a guy who has tried very much to cope and done a decent job. you go from 10 million users to 200 million users in a year. i'm pro zoom i think it's fantastic for all of us to hang out with each other. there was a moment where he compared his product to w webexfrom cisco. web ex is so secure, they would

never think about having their servers in china eric says we're not as secure basically as cisco now he worked at cisco if you're a bank or the taiwan government, taiwan not that pro china, but if you're a bank using zoom, i hope you're using zoom so you can play take two games against each other if you're using zoom with my account, i'm taking my account away from someone who uses zoom and brings it to someone using cisco. there's a lot that's happening just like that behind the scenes i got that yesterday >> yeah. any number of people are just happy to have a conference call again and perhaps not using zoom as much as they had been in terms of work related things right now. this whole work life balance and where we're going to be when this ends, terms of work continues to be something i hear about, i'm sure you do as well

how many people will continue to work from home will there be a reduction in office space, perhaps pursued by some companies as a result of having a certain percentage of the work force at home unclear where that all plays out. on the other side of it you have how many 25-year-olds want to be staying home in their one-bedroom apartment or wherever they may be they like to be out, at the office at the same time, the point, you made, are we going to have office space that requires more space between employees? >> i think so. >> because everybody is congregating closely >> i have a 17-table restaurant in brooklyn. i'm capable of serving three solid people that's going to be a real loser. m three people what do i serve? corona what a sub ooptimal situation. >> if a concert can only sell out every third seat, the ticket

price is probably going up we'll talk about that as well. we'll take a quick break a lot to get to including what to do tactically with this market over the past couple of days as we go into the opec plus meeting, russia/saudi getting closer and closer to a production deal. a lot more when "squawk on the street" continues.

welcome back to "squawk on the street." time for a mad dash. going to send it back over to jim. you want to talk about constellation brands this morning, jim >> one thing we're forgetting, we could be in a recession, remember that? might be recession what do people do in a recession? they drink beer. what do they do in particular? they drink beer at home. 85% to 95% of the beer from constellation, corona, modello, these are drunk at home. there's a lot of sales and they have spiked seltzer coming this summer and they own a big stake in canopy, last-man standing when it comes to cannabis ubs goes hold to buy today i had them on last week, they tell a great story if you're looking for a stock that's actually at home where you got a potential recession

built in, i would buy this one i would remember that as you buy all the airlines, they're not flying with customers. if you buy all the cruise ships, they're not even going but how about something where we actually might have up earnings? i think we're about to be in earnings season. you want to be in something that will have good numbers >> all right yeah we should talk more about that after the break in terms of people consuming more beer and wine and alcohol at home and getting high more than they do when they go out >> david, what are you -- >> we'll take a quick break. we have some news this morning from at&t, from exxonmobil want to get to both of those as well after the break turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in.

now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪ our retirement plan with voya gives us confidence... ...we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. i'm good at my condo. well planned, well invested, well protected. voya. be confident to and through retirement.

there's only been about 30 rallies like the one we saw yesterday. 7% plus on the s&p, and we're adding more today as optimism continues about bending the covid-19 curve around the world. more "squawk on the street" ntues. isn't just a department.

it's a voice on the other end of the phone. a note to say you're on our mind. a willingness to come to you. the world and how we interact with each other is changing. but that will never change who we are at lexus. now, more than ever, you and your needs come first. find out what service options are available in your area at lexus.com/people first aand we're here for you -ry day fespecially now,rs. find out what service options are available 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. welcome back to "squawk on the street." want to keep an eye on shares of exxonmobil the company comes out and says it will be cutting capital spending for what is left of

2020 by 30%, lowering the cash operating expenses by 15%, this in response to the dramatic drop in demand for oil overall. capital investments for 2020 had been at $33 billion. now expected to be about $23 billion. and, guys, the focus is they can toggle, so to speak, the shorter cycle business, which is really the permian, you can turn it on, turn it off, come back to it in a more rapid way the longer term international projects, lng, these mega capital projects as well, those sort of take a lot longer to get going again when you kind of cut them off so, you know, the official cap -- the efficient capital management that exxon is looking for allowed them to get that by turning the permian off a bit. they have talked about long-term

fundamentals have not changed. the short-term fundamentals, you know what we're building inventories at, jim. the gasoline supplied number from last week was the lowest since 1994 and we're building now at 30 million barrels a day we're building stocks. >> i was talking to rusty brazil from rbn, 3 million a day coming from the western canadian sands. you can't shut that down you have to keep pumping you can't stop the longer-term projects becky asked a pertinent question about the dividend, which they want to protect. maybe you cut back capex to do divide dividend i'm seeing everyone fighting to not declare bankruptcy whiting had to go. chesapeake is out there. i look at the 13% to 20%

yielders for the partnerships. guys, let's be sensible. why are you giving away so much? then i look et, which is not phoning home, that's a stock you have to watch. the that was the wild west card. they thought everything was terrific energy transfer. it's not terrific. so i'm waiting for the other seven or eight shoes to drop there's not a lot of demand for what they produce. i'm not saying they're macy's, where the cfo left and it looks ill-advised to be there. but i'm saying there's an industry here that is so -- there's way to many players. private equity on the sidelines. if you buy these stocks, you're hoping, geez, tomorrow will be good too i don't like to buy on that theory >> yeah, jim, your point about the macy's cfo, paula price will leave as they leave the s&p 500.

but yellen on our air yesterday with sarah talking about how she believes the banks at least should start thinking about suspending dividends, there will be a toll the longer this drags on which buckets do you think need to have the dividend least energy, banks, retail, all of the above? >> i think that the energy players, they can keep cutting back keep cutting out to production which i don't think will help that much. they can borrow to pay the dividend the retailers showed that you have a balance sheet that's not that bad but these companies are way far away from the one season that matters for them, christmas. the banks have been adamant they can pay the dividend i thought janet yellen showed, to me, a strategy that i was unexpected that she would do that i would have thought she would have had a little more -- been a

little more circumspect. and she was the person who made it so wells fargo can't make the loans. a lot of people in this country are upset about wells fargo. i wish she had said, you know what they paid their dues, she didn't that was in error that she didn't >> that's a good point we are getting news from the department of transportation regarding airlines the minimum number of flights they can give. phil lebeau has that for us. >> the airline stocks up pre market, that's because the d.o.t. gave the approval for them to fly bare minimum schedules. american airlines going from 271 flights in new york city down to 13 similar moves from other competitors in the new york city area you'll see this across the board if they have not already done that those rules are now locked in. at least through september this comes a day after the tsa screened just 108,000 people at

u.s. airports. guys, that's down 95.5% compared to the same day a year ago back to you. >> just other worldly numbers, phil jim, we did get a couple comments from the international air transport association seeing tentative signs of a pick up in china. the wuhan lockdown has been going on for 77 days, that lifts tomorrow >> right >> so we'll get a picture of how many people will be able to come and go from that area. >> it will be interesting to see what china does in terms of ordering planes from boeing. there is a tremendous tension between china and the united states and i know that the president was talking about how much grain is being bought from china we also know that peter navarro memo floating around i would say china is well ahead of every country on earth in

terms of being open for business how great that is for them and they need to place some boeing orders. 3m sending some masks become here that was a gesture of kindness >> 160 million in the next three months there's the opening bell jim, you do mention this reporting over the navarro memo to potus in late january the surgeon general is on the "today" show this morning saying he never saw it from january 29th he says there were preparations going on all the time. we have been saying for decades this is a possibility. critics don't know what to make of navarro now because he was dangerously hyping chloroquine and now he's raising the alarm the most >> i think peter navarro was consistent he's worried about the covid

he has been saying over and over again let's not trust the chinese. now it seems like he's coming out like a bad guy on hydroxy, i have friends with lupus, they were angry that i called my doctor to try to get this why did i try to get it? i don't know, geez, everybody was telling you to get it in the white house. >> this hydroxychloroquine, when you speak to people who run these hospitals on the front lines, they are using it they are using it. >> right >> they have no idea whether it's working or not frankly because there's no protocol at this point that gives them a sample size of which to do a real study but it's being used. now, is it not being used at the right time is it having an effect the fatality rate is the fatality rate that we got. don't think that it is not being used it is by many of these front line -- the hospitals on the front lines. i know that. i've spoken to a number of them.

i spoke to people aware of it. but the problem is there's so many unanswered questions when it comes to that particular therapy, and questions about when you start it, whether it is efficacio efficacious. >> we all had friends who took it, they got over it very fast i also know that there's cardiac arrhythmia issues. you get a cardiac arrhythmia issue, that's a side effect that could be death quickly if it was a new drug, i think the fda would say we don't like this cardiac arrhythmia problem. yeah, they're using it of the total battleground -- nobody wants the president to be ramming through a drug at the same time, when i tried to get it, why did i try to get it the president told you to get it he must know something then dr. fauci says not get it there's kind of a strange dynamic between fauci and the president, don't you think >> yeah.

but you've been listening to fau fauci, which is probably good advice >> he's more of a doctor than the president. >> the life sciences industry overall interestingly seems to be fairly well situated for the current environment. obviously, as you said, the pharmaceutical industry is focused now on covid the fda is focused on it any trials going on for other drugs, important to point out have been more or less stopped in their tracks. so if you're a small biotech company relying on something to raise more capital that becomes an issue at the same time, you know, you can get your medicines so that's one industry that has been perhaps not as affected by the significance of this >> it's so important remember when the chinese were going to make it so we couldn't get our medicines? it didn't happen to come back to the hydroxy, i don't want to slight the president -- hate him or like him -- i did kind of get the drug i tried to get it this weekend

because too many people i know have had good luck with it and i thought it was available, and then i got told by my pharmacist and doctor, look, this is a real sacred medicine for people who are very sick you're trying to stockpile and preserve it. i think that the president -- there's a point where there was a study in france. now i know it wasn't peer reviewed but you know what? a lot of things are not peer reviewed, if you think you're going to die, give me a shot >> yeah. you don't want to rely on -- >> rem decembi find when you ha blind studies, the news is good, you break them i'm not bullish on gilead. i'm much more bullish on regener regeneron, which is a

monocolonimono monocolonial antibody. this market needs somebody to come out in the next ten days and have an antibody that makes it so boris johnson is out of that hospital right now. >> that's going to be very tough to do, jim, in ten days. i'm aware of my friends at ridge back, i had wayne holman on, they're moving forward as quickly as they can. moving forward in the uk as quickly as they can. trying to get into human trials. >> i'm looking at things that say the gilead drug works. you can't have this kind of rally, particularly in retail, unless retail was completely wrong. unless all the things they said were wrong, the work at cowen

about debt covenants is wrong. you can't have this kind of rally unless there's something we don't know about an antibody. i don't think i -- i do a lot of work on antibodies i can't find it. maybe the hydroxy will cut the number the president is out there every day saying it. he is out on a limb. no comment on that one >> yeah. i'll tell you what, s&p 2750 last night some technicians at bay crest said 2700 is the key level if you look at volume at price. it would be an attractive area to tactically sell into. are you in that camp >> i think we moved up too much. we met with my club people this morning, and said, you have to do some selling. this is overdone unless we knew something, which we don't, about a major break through. in the end, i still come back to the idea that while -- on

thursday we thought the world was going to get -- hedge fund managers, i think they were doing the crocodile tear thing i think some hedge fund managers went to islands we didn't know about. don't laugh. they were headed to the hills. >> i don't know why we're talking around it. >> right they were headed to the hills. it was like the movie "on the beach. they got islands we don't know about that are for covid they are like covid islands! the rest of us in our house. >> pandemic islands. >> pandemic islands. >> with their own medical staffs and ventilators. >> that's good, david. how did you come up with that? >> thank you thank you. >> that's what happens if you are at home. if you were here, you wouldn't have come up with that pandemic islands these guys -- i think these houses are stocked don't forget, the ar-15s don't forget

that's what they have. >> a lot of that a lot of that. yeah >> everyone knows this is the case, we don't want to admit it because it will hurt us in our zoom cocktail party on saturday. >> well, you were overserved last time, you probably will get overserved again >> i thought that was my best joke ever. i was overserved >> eric got it it's okay to make a couple jokes, guys. >> you have -- every so often you hit them >> thank you david, the no jacket with tie thing, yes >> yeah? >> yeah. >> it's like money >> okay. i'm going back and forth i'm going jacket, no tie sweater, tie i'm not going full carl quintanilla like i'm in the office >> he looks great. >> always looks sharp. >> when you're talking about peoples money, you wear a tie. >> i agree >> that's a general rule >> what is it? the pandemic islands

where are they located seychelles where are the pandemic islands >> you can't tell anybody. that would defeat the purpose of having the pandemic island >> you -- you! >> silent. quiet. >> you're so right, man. those islands -- >> yeah. >> can you land a plane? who got that fella's island, the guy who had all that trouble we forgot about >> guys, we had -- >> carl wanted to talk -- go ahead, carl. sorry. >> fyre fest >> we mentioned 3m and this deal to make masks for the government over the next three months the president did talk about this yesterday want to take a quick listen? >> yeah. >> because of my actions under the dpa, i can also announce today we have reached an agreement very amicable agreement with 3m for the delivery of the additional 55.5 million high-quality face masks,

face masks each month. so we're going to be getting over the next couple of months 166.5 million masks for our front line health care workers so the 3m saga ends very happ y happily. >> yeah. >> saga. >> that's a far cry from accusations of piracy. >> well, good. i think he even said he loved mike, mike roman this was an unbelievable saga. it's obvious like medtronic, 3m had some orders. the chinese wouldn't let the stuff out. it's great they're back together a few days ago i thought mike was going to get some justice department scrutiny to do something that david often talks b the pfast destruction of ground water that people are

unhappy with >> we may come back to the day where we're talking about that with regard to 3m, jim for now it's about masks they came out against the president and peter navarro rebutting what they said 3m had been doing the most important of which they will get more face masks to the front line personnel who need it particularly as the rest of the country needs a mask as well that supply will be going to the professionals who are dealing with it every day. >> i'll give a little heads up to people who make gowns, you will get the navarro call, or maybe the president. but in the end, it ends amicable it's amicable. >> yeah. >> yeah. trying to find a situation where you live with sun for a loomeonn time -- never mind the 3m situation is emblematic of where are the chinese

are they helping us or working against us we still don't know. i think the chinese are uniquely well ahead of us i'm sure that some of us could argue they just became a greater power than we are because they're open for business. >> jim, yeah it's interesting i was hearing that last week as well they are coming out of this crisis sooner, while the rest of the western world is still suffering. our economies are in a very difficult position it will be interesting to see whether the chinese are able to actually benefit in a strange way from this crisis, from this health crisis to the point you're making by having their economy be in a much stronger position, let's call it at the beginning of 2021 than the u.s. or the rest of the western world. perhaps something we did not see when this began in wuhan >> don't we find it amazing that outside of the cordoned off area of wuhan how incredible the rest

of china was seemingly ready and that the wuhan area, maybe that got sacrificed or triaged the rest of china, they decided to make it so that was where real business would be done. in the united states we're afraid to go to olive garden just amazing. >> >> sseeing denny's comps com out. >> they have the grand slam there. >> system wide in march, down 19 reflecting the covid-19 and obviously that's with reduced hours and delivery-only options. we'll talk about restaurants mosh more in a minute and at&t. let's get to bob pisani. good morning, bob. >> this is the second day in a row we had a gap up in the s&p 500. do you know we're up almost 10% this week? this week. it's only the second day of the week overall here. 20% off the lows a lot of debate about whether we're in a new bull market people arguing about that. let's look at where we're at

there's two things moving the markets. the most important one is the hopes that we're approaching some kind of peak outbreak here in the united states but i think people should pay close attention to this massive wave of new stimulus programs being talked about over in japan, over in the eurozone, even here in the united states. look at the global markets we have essentially a 2% rally a lot better here, 2% rally. over there, hang seng up 2%. japan, they're talking about stimulus there, that would be 20% of gdp we did 10%, they're talking about 20% of gdp that's more to come in addition to what they've done stoxx 600 talking about a half trillion dollar euro stimulus plan, they'll debate that in the next few days. the travel stocks, autos, flying up 5%, 6%. the stimulus programs that are coming is another overlay on top of hopes that we're perhaps bottoming here a lot better than 2% rallies here in the united states. bank stocks have had a great week retailers are flying

some of these stocks are moving 15%. ascena up 15%. you can see how small that stock it nordstrom, chico's, gap, all flies here debate about how we bounced off the lows remember what happened on the march 23rd lows here, from those lows, from the 52-week lows, energy is up 40% utilities up 28% industrials up reits up consumer staples are lagging, we have noted how the krogers of the world and the campbell soups are down the last few days or flattish so that's a big change here. you can see the flip-flop of how things are going the big debate on the street is what are we in i call it the market in the middle we have a bull market on february 19th. that was the peak. then we went to a bear market on the bottom on march 23rd, we were down almost 35% in the s&p 500. and now where are we

what is this is this a bull market? we are 20% off the lows. i mentioned this yesterday i got snarky remarks bob, it's three hours old, you can't call it a bull market. it's ridiculous. nobody ever invented these 10%, 20% correction and bull market and bear market rules, they were created over the last 30 years the fact is we're 20% off the lows i don't know probably it's too early to call it a bull market let's call it the markets in the middle for the time being. this is one enormous powerful rally, like the enormous powerful bear market that we experienced that took three weeks to get through guys, back to you. >> bob, thank you. bob pisani of course talking about the incredible move with the s&p up almost 3% this morning. guys, did want to get to at&t which came out with a long press release focused on the strong position and balance sheet and

attractive liquidity as you guys well know, these are the days in which you're very much focused, if you're a company, on your balance sheet, on your liquidity, on what your leverage s maintaining flexibility. at&t does borrow 5.5 billion from 12 banks to provide what it's saying is additional financial flexibility to what is already a strong cash position it has a $15 billion revolver it's not yet tapped. commercial paper continues to be out there without problem as well but it was interesting that they went into such levels of detail here the dividend remains -- the company itself, given warner media, you have turner broadcasting there, think about the ncaa, other sports that they're paying for that they're not getting now. that's another story perhaps for so many of those networks. they have a movie studio not producing anything at the moment like so many others. at the same time, at&t, jim, the

wireless side of the business, one would expect is going fairly well but they did spend a lot of pages to tell us that they took a 5$5.5 billion loan. >> yeah. david, i thought that was astounding it was right in conjunction with the 5.5 billion. if you're borrowing to pay, i don't know i might come down with the nathanson view i wanted to go with the view that this is undervalued i didn't like that press release. it scared me i know it's meant to reassure me, but it did the opposite. >> yeah. i don't know i did try to make some calls to get a better understanding as to why they felt the need to go into the levels of detail they did. we will hear from the company on april 22nd that's when we will get first quarter earnings from at&t a lot more detail will be provided then. they did talk about the large cash position. the ability to generate cash dividends, all those things being safe in the context of taking 5.5 billion

>> don't worry about the dividend really i didn't know i should be. >> guys, let's check in with rick santelli. the ten-year yield hit a one-week high. >> thursday the 26th was the last time we closed above 57 basis points or 30 basis points for two-year let's start there. look at a two-day of two-year. we touched 30. have not closed up there since one-day shy of two weeks we have eased off a bit. 30 basis points we're up four on the day, now 28 basis points we're up three on the day -- excuse me, two on the day. if you look at two-day of ten-year note yields at 57 ba 7i points, it's eased back. curve still steepening steepening with higher rates, lower price. so the bear steepening is a good thing. i talked about that yesterday. whether people like it or not, trying to handicap health issues

with market issues is never easy i'll stick with the market side. it's certainly seeming-li like second day of a risk on day. i'm hearing pension funds with this lower volatility environment are running with that train again trying to get that means buying. if we look at a year-to-date of bund yields, this is fascinating. they're down at minus 33 basis points where did they settle last year, minus 18 basis points, 15 basis points from unchanged which really underscores how our yields and europe yields have come closer. why? because their box of goods and tricks and vapors and all the test tubes is in much worse shape than the u.s.'s. the ecb can't do what our fed is doing and the notion of a euro bond isn't within the grasp of christine lagarde and friends. the monetary index, you talk

about a risk-off signal, most is going to the rue owe side a two-day of euro versus the dollar yesterday under 1.08, now back above 1.09 david, back to you >> thank you, rick santelli, on the bond market. when it comes to the stock market we have s&p up 2.8% the nasdaq comp. by the way only down 9.7% for the year banks very strong this morning, led by citi, up almost 10% we've got a lot more "squawk on the street" for you coming right back

when you look at the critical issues facing our world, what do you see? we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

stocks extending that rally, the incredible historic rally from monday into a second day as mnuchin and kudlow continue to tell reporters they're looking at ways to open up at least part of the economy in the coming weeks. we'll talk about that and many other things with intel's chief bob swan coming up at 11:00 a.m. eastern time back in a minute

let's get to jim and "stop

trading. >> having an extraordinarily thoughtful piece by goldman about investor feedback to their boeing upgrade basically saying listen, people are waytoo negative about boeing, what could happen, but they list all the negatives and i find this is the kind of thing if more research firms were doing this like goldman did, you would be able to say you know what? i now have a reason to buy boeing and now i also recognize what could go wrong. it made me feel more confident for those who are buying if you're still confident, you know what? you must be a believer a lot of things are going to go right the analyst clearly does believe and he did recommend this stock when it was at 90. it was a great call, so i encourage more research firms to do exactly what goldman did today, which is to say listen, here's what people are saying and we're sticking by our upgrade. i thought it was very thoughtful in a period where i've not seen a lot of thought >> hmm

jim, what is their reason for buying boeing? >> you'd have to believe that, yes, the 737 max has come online, people don't think that's going to happen, that the cash flow is better than what people think, that the federal government is actually going to be okay with them. now the federal government, remember, they're reluctant to say anything bailout and far more about trying to help the small and medium sized business. i have not been inclined to like boeing the reason i didn't, i cannot believe that the 737 max is still on the griddle and because we don't have a lot of air traffic, but you know what the more i think of china coming out of it and china wanting to be a world power, well they are a world power. maybe china places a big order with boeing for the rest of their planes and something good happens here for maybe the faa says you know what we're satisfied and the stock has 50 to 100 points on it >> fascinating, jim. >> yes >> a lot of cross currents to read on that front guys, let's reset on this tuesday morning. welcome back to "squawk on the

street," i'm carl quintanilla with david faber, jim cramer and sara eisen coming to you live from various locations on this day of a second rally on wall street more optimism about bending the global curve when it comes to covid-19, more talk of congressional stimulus, perhaps a trillion or more, relatively stable action once again, sara, in oil, as we await what we think could be a pivotal meeting of opec plus on thursday actually thursday is going to be busy between opec, between claims and we know powell is going to make some comments at brookings. >> i add to the list of your positives that key parts of the u.s. debt market are functioning again after the fed has intervened in an extraordinary way shoring up the credit market, muni debt market and seeing investment grade going to issue some debt. we'll have to watch that because there could be degradation as the fed has not stopped that market yet but that is in the pile of good things happening, and that is continued

stabilization in those key parts of the bond market >> all right, we are getting some data this morning and for that we turn back to rick santelli hey, rick. >> yes, we're looking for our february read on j.o.l.t.s., job opening and limit turnover last look was 6,963,000. 6,882,000, which is the smallest number only since december, when it was 6,552,000, and that took you back two years to the lowest number since dec of 2017 there was a revision, last look pops back over the 7 million mark so 7,012,versus 6,882,000

we're not getting great job openings in the near future but this is trying tohandicap wher we are and how soon we can get to the back side sara, back to you. >> the market likes that we have new data on housing and the mortgage front diana olick? >> sara, mortgage payments for april are not officially late until the 15th but borrowers ared intoing into the government's forbearance program. forbearance requests grew by 1,207% between the week of march 2nd and march 16th and nearly 2,000% between march 16th and the 30th, numbers from the mortgage bankers associations that are just being released at this hour. for the week of march 23rd through the 29th, caller requests for fa forbearance numbered 218,718 and march 30th through april 1st, prorated,

mortgage services are required to grant forbearance to any borrower who requests it with no documentation of hardship necessary, including data on 22 million loans serviced as of april 1st, that's 45% of the first lean market so just double it for the total numbers for borrowers trying to get through to the call centers, call wait time on average jumped from five minutes three weeks ago to 18 minutes now, and about 25% of callers are abandoning those calls thinking no one is going to get back to them. back to you guys >> hey, diana, it's david. just curious when i see the forbearance numbers what it means for fannie and freddie, how much time do they have how much forbearance can they take before they need more money? >> reporter: well, that's a question, is the dollar volume of what this going to be we still do not have any liquidity facility for servicers on the forbearance programs. remember, borrowers can stop payments but the mortgage

servicers still have to pay the bond holders and that falls back to fannie mae and freddie mac. we interviewed the head of the fhfa, governor mark colabria. everyone else in the industry sent out a plea begging this facility because they'll not be able to handle that amount of cash to bow roars. it will be in the billions, no question >> diana olick, thank you. you know, jim, we were talking about some of the positives and obviously the investors are in a good mood these days and we've seen this powerful rally, including the bending of the curve early signs of that, of course, and oil and the debt markets, but then there's the question about how much more work we have to do there was a great piece in the "new york times" today about how we will know when it's time to reopen the nation, and it's stuff that you and i and we all talk about but it synthesized really well in terms of the four pillars that we need to look for and it's a reminder we still

have work to do. hospitals need to be able to safely treat all the patients not in the sort of crisis war-like mode. states need to test everyone who has symptoms the states need to monitor the confirmed cases and there must be a sustained reduction in cases for at least 14 days we're moving in the right direction. >> oh, yeah. >> it also highlights a lot of work still to be done. >> and dr. gottlieb posting on twitter where we have to go next i think the amazing thing here is the fed just flooding the economy with money, the treasury in agreement with nancy pelosi, the speaker pelosi to just say okay, listen, whatever money you need, whatever money you need to the small business to medium to keep them open touring this period i still wish they'd pay to you stay at home, i want to accelerate this process. i'm blown away at the liquidity and how much the administration wants to make it so small, medium sized business and community banks do the right

thing, how much the democrats and republicans did to get together and the federal reserve backstopping the small business loans. i want to compare this to 2007 to 2009, trying to figure out how much do we punish lehman shouldn't we let them have it? they learned and by the way, a lot of the companies have learned. they have different maturities for their debt, they space it out, a lot of companies turned out to have some cash on hand except for the retailers and the restaurants, who would have thought they would be shut down. things are better than 2007 to 2009 the government seemed to have learned their lesson >> they moved faster and bigger and large businesses like oracle and cvs health borrowing money at a record pace because the stressors are down so much the question for equity investors, jim, should you be buying now or are you going to get a better opportunity, with so many folks like yourself saying they're cautious we've seen the bottom. >> i think you get a better opportunity. think about the last 5000 dow

points yesterday i don't know, they were done in about, what, 30 minutes, that's not sustainable and there are people who are just anxious to be able to take something off the table, because they've just even seen a remarkable bull marked marke market, two-day bull market and ready to talk about the various stages we need to be able to get out. i was think beiing about home dt above 200. if you're staying at home doing nothing, paint your place. why don't do you some gardening, versus also do they wipe out all the independents and when things get better, is it home depot and maybe that's why it's being bought. i find if it's just that you can wait, there is a better opportunity. if it is, it's the near term and numbers are good i understand i'm worried about the numbers next week. i'm worried about the numbers. my travel trust citi is up but they better do the number or

else it goes back and hear yellen talk about the dividends again. that was something >> even jpm in their note last night and conference call with some investors yesterday said that the winner-take-all dynamic is going to be embedded in stocks, maybe for years to come. >> yes >> to that point you just made the ability of large companies to sadly capitalize on the death of small ones. >> cfo of macy's stock is up $1, so up 17%. the cfo leaves, paula price. this is not a positive, but at the same time we've got probably some etf, the retailers and macy's in the etf along with kohl's a long with nordstrom you better hope these companies get a lot of sales, get some business in, because if they don't, they do have debt convenance it's not like they can just be closed for a while and everything goes fine there's a credit side that people don't seem to see, but it's gratifying to see macy's up

$1 because normally it would be down remember, that's just etf panic buying and we're seeing that throughout the board and that ends at a certain point, whether it ends, i like to ask david about the 200 moving day average. i do that because it's obvious it's not going to make an end. what makes an end is business isn't any good, it's not business is not good so like you got to hope that business gets better quickly, and we have a plan to be able to make it so that -- someone posted on my twitter that there's a lot of people lined up in a cash register in a retailer, and i say well good luck to them, that's fine. it's not going to be me. i don't want that point of contact. >> right jim, let's ask about that to david kostin are goldman sachs chief equity strategist, great to talk to you on the phone, david, good morning. >> good morning, carl, david, sara and jim i guess as well >> um-hum. >> yep, we're all here david, i'll start out.

we've seen some pretty benign revisions lately on hospitalization forecasts, the number of deaths, the need for ventilators, stimulus as jim just said has been quick and responsive so as others around the street try to sniff out reasons to rally, is that doing anything in terms of your view for year-end? >> no. first of all, the way i think about this is a little bit of asymmetry in terms of a downside risk towards a level in the s&p 500 of around 2,000, which is down almost 25% and upside of around 10% to a target at the end of the year of 3,000 so that asymmetry is not sort of symmetrical in terms of timing i think the risk is much further to the downside, and a couple points that i'll make. there's a lot of good things happening, a few weeks ago it was concerns about solvency and

liquidity for so many companies and instead i think as you were just mentioning really came in, in a powerful way, in a number of programs, commercial paper one in particular. and then there was a focus on the revenue replacement through the unemployment insurance and through the c.a.r.e.s. act and congress, i think that's important to follow that it's not clear how fast that's going through and something we'll be looking at carefully in the second quarter here, and then the next thing people focusing on, really the conversations with fund managers last week was about looking through to 2021, and saying what is the outlook for next year is this a "v"? is this a "u"? >> basically flushing the 2020 earnings and looking into next year, and this week, short week already but it's been much more on the reduction in the number of cases, which carl exactly what you were saying you've had this evolution of a reduction in risk and people are certainly excited, but the

market has had a rally of almost 25%, and i would just remind you that in 2008, in the fourth quarter, there were many different rallies, i call them bear market rallies, some of which almost 20% a couple of times but the market did not bottom until march of 2009, and so i guess the thought i had is that risk to the downside is greater than the opportunity to the upside from this point, where we stand today >> another point you made this week -- >> dave -- >> jim, you take it, you take it >> just a quick one. david, you know i devour your stuff, and you've been spot on on the whole way let me ask you in terms of what you just asked, there's two pieces, they're not yours, from goldman. web bush says it's time to buy key corp., best idea stock is at 10, yield 6.82 morgan stanley says time to take risk off the table, downgrade key. i'm picking key because it's one

of those companies that i think we all know, it's got a great franchise. it's got a good yield. it's a conservative management, and david, i'm torn. i see this guy telling me to buy key, and this guy telling me to sell key which is more in thinking with your thinking right now? >> well, my thinking right now is more defensive, and so two approaches i think about are margin of safety, and income at this juncture, and if i look out for the next three to six months, that is how i am recommending client position it's a way to think about margin of safety, the old ben graham terminolo terminology, we look at earnings for next year, as i said before, looking ahead to 2021, and cut those by 20% a haircut of 20% and ask ourselves how are the stocks trading today on that discounted earnings haircut earnings compared with march of 2009.

we know by definition that march of 2009 was a low. you see what are some stocks trading at today on the discounted forward earnings with where we were at the low that's one approach and a margin of safety. you feel more comfortable buying, and the second is on a dividend side and that relates to your bank's extension, which is where are some stocks where we feel confident that companies will be able to pay a dividend, in this case looking athe dividend yield, we had 40 stocks yielding 40% and the importance of that, treasury yields are 75 basis points, rather have the income and the visibility of that over the next three to six months when the uncertainty remains extremely high of course we hope and pray for reduction in the viral mortality rate and the fatality and the number of new cases that come down, but there's uncertainty about how fast the fiscal stimulus can get through the economy, i think there's a risk

of bumpiness along the way, which is why i'd rather be more defensive. that's how i would be positioning the portfolio at this time, jim >> and david, whether it's dividends or buybacks, which you see being cut in half this year, as you put it, corporations are going to prioritize liquidity, to what extent does that hobble equities from here until who knows when >> well, i think it's an excellent point, because company's first priority is to remain in business that's the first order of business, and that's why the liquidity is so important and the solvency in the later term, getting through the next 90 to 180 days when there's absolutely no revenue dividends will be down by around 25%. that is to say that the level of dividends that companies will pay this year will be about a quarter or down 25% versus a year ago, and the way to think about that, you've already had

15 different suspensions of dividends from a variety of different, a lot of energy companies, the retailer, some airlines, not a total shock that they've looked into try to retain as much liquidity and as they possibly can. so dividends themselves are backing more prized, because fewer companies are likely to be paying them, and then on the buybacks, which is my forecast is it will be down around 50% so we have much less dollars of money coming in. that has a couple of several very important implications as a portfolio manager. first of all, when companies are not buying back stock, you tend to have a wider or a higher trading, wider trading ranges. that's one issue the second is you have higher volatility we'll talk about that in just a second but there's higher volatility associated with periods of time when companies cannot repurchase shares like in a buyback blackout window. when you're not buying back stock the blackout window

extends to the entirety of the year and then you got less downside support and stock prices are going lower, there's fewer managers coming in to buy their stock if they've withdrawn or suspended their buyback program and also have slower eps growth so all of those characteristics are in the market associated when buybacks are coming lower buybacks have been the primary source of demand for u.s. equities for the last decade that's where the corporate buying is offset all the net selling that's basically taking place from foreign investors, from insurance companies, from pension funds, from a lot of mutual funds there's net selling and corporates are repurchasing all their shares that's been the source of demand if that falls away, the question is, is there something to replace that the issue is we've had super high volatility, the highest realized volatility in march, in any month ever, ever, that's higher realized vol than in

october of 1987 in the crash, october of 1929, october of 2008 the realized vol is extraordinarily high so that's a kind of environment you'd be expecting higher vol, i'm not saying that high of a vol but higher to long-term average vol in a period where companies are not repurchase shares. that's a general concern over time, where do you get the replacement demand for shares? one of the ways you get it is you can get a washout in investor psychology, and we have not had that that's the one surprise, when i think of what forms the bottom, what forms a sustainable rally, we like to see -- not like to see but we would expect to see the same positioning that you have seen at other low points in the market, march of '09, december of 2018 october of 1911 -- of 2011, when there's different points when you had low points in the

market, what has been the common factor in a positions? you've seen companies, portfolio managers basically whether they're hedge funds, they're mutual funds, they're retail investors, basically not have a lot of, you know, aggression or a lot of long positioning. >> hmm >> we're not there yet and i expect that as one of the characteristics i'd look for, in forming a sustainable point where the market will go higher. that's when people are buying and you have more sustainable demand >> we've seen our gains cut in half maybe you're talking down this market, david kostin, just looking at some of the action in the s&p 500 now. up only 1.5% or so i'm wondering how you're thinking about the structure impact of all of this, and whether you're ready to make calls on stocks or industries based on how our behavior is going to change and our lives are going to change out of this. >> it's a great question, sara not at the present time.

there is certainly a lot of questions. you're sort of anticipating what some of the questions this week have been about what does it look like after this is done the problem on that one issue is, there's no all clear bell that rings in terms of when this is over. there was an article i think in the "new york times" that sort of articulated from a medical point of view what are some of the things to be looking for i'm not an epidemiologist but we need to know kind of when this is going to be back to normal and clearly there's some industries that are going to be har hard-pressed and the way i think about it with the equity research department at goldman, sort of four buckets you can think about companies that are relatively immune, no pun intended there, relatively immune from what's happening you can think of the companies that are, clorox, et cetera, walmart, procter & gamble, where their businesses pretty much is fine, just as it's been for a long period of time. i'm not the analyst on the stocks but just as a strategist

looking at the, that business model, and in terms of the consumer staples, there's a reason they call it consumer staples. then you look at companies where there's demand at the hiatus but ultimately should come back, you think of the electoral elective surgeries, eventually they'll come back when people are older, they need hips replaced, knees replaced, things like that, that will come back so that's an opportunity in some cases from a share viprice valuation and thi area businesses affected for various reasons, banking industry, for example, where you've got much lower yield curve, net interest margins and pressures, questions about what kind of reserves have to be made in terms of credit quality, and then you've got a fourth category of companies where there's definitely structural issues, the energy prices right now, where they are would suggest that's an issue. you have companies in obviously the travel industry and hotels and airlines, et cetera.

i kind of think of it in four buckets. some industries are relatively less affected by this. we are all affected from a human point of view but from a financial point of view, relatively less effective. others much more so, and i think of it that way in terms of the positioning of a portfolio but i think it's less about investing and in this context more about business model and where you are. >> david kostin of goldman, great to talk to you appreciate it very much. >> stay healthy. . >> we'll see you soon. david? we have the s&p -- thank you, carl, s&p up about 1.9% jim, what have you got coming up on the big "mad money" program later today? >> david killed the technologies david kostin killed the technologies uhm -- he did. all right, riverbed is a stay-at-home play private and hamid, i don't know if you know him, prologis the most important

i would say place that you see along the highway that has the distribution, and he is just incredible in understanding this san e-commerce moment and how well his business is david, i am going -- i've got a great travel agent and i'm going to find out where the pandemic islands are and i am going to have that for a three-day weekend. i know it's a secret where they are, and david, i don't take any pharmaceuticals and i'm sorry if i left the impression that i'm trying to get them or not get them, but i do wish that dr. fauci or president trump would win out, one or the other and then i'll get the prescription or not and hit the pandemic islands hot and there's no fire fest there >> yes, let's -- no, no. there's a lot of ventilators on the pandemic islands we'd like to get our hands on. >> are they leewafrd wind wa windward at least give us the hemisphere,

david. >> i can't tell you that either. i'm not allowed. >> jim, see you later. don't go anywhere. no islands >> sara, i'll let you know where they are i'll text you, no problem. >> all right, jim cramer, we'll see you on "mad money. we'll take a quick commercial break. the ceo of mayo clinic joins us in a few minutes with a new ground-breaking test they are doing for covid-19 we'll be right back.

welcome back dow is up 400. time four our etf spotlight. the energy spyder etf, ticker xle is moving higher, up double digits now for the week. one name that's helping the rally in particular, exxonmobil, announcing they're cutting 2020 capital expenditures by 30%. oil is higher today and energy is the best performing sector in the s&p, though it's still a group that's down 45% so far this year. we'll take a quick commercial break. stay with us we are going to talk to the ceo of mayo clinic on the other side ever since we've gone mobile on the now platform,

something's gotten into the office. i hear you. feels like there's no barriers between departments now. servicenow. the smarter way to workflow.

when yowhat do you see?itical issues facing our world, we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

welcome back let's get to sue herrera for an update on the coronavirus around the world. sue? >> good morning, david thank you very much. good morning, everyone we begin with the numbers. the coronavirus death toll in the u.s. has now crossed above 11,000 only italy and spain have recorded more deaths nissan is furloughing most of its manufacturing workers in the u.s. about 10,000 workers at plants in tennessee and mississippi are affected by the automaker's move to conserve cash major league baseball teams and its players association have been discussing a plan to play this season's games in the phoenix area espn says the season could start as soon as early may fans would not be allowed in the stadium, and all 30 teams would move their play iers to the staf and area and isolate between games. many issues of course remain to

be resolved. the talks are described to be at an early stage overseas in spain, the death toll has gone up for the first time in five days. officials say 743 people have died since yesterday, bringing that country's total to nearly 13,800 and british prime minister boris johnson remains in intensive care this morning. a government spokesman says he remains stable and is receiving supplemental oxygen, but is not on a ventilator. queen elizabeth is wishing johnson a "full and speedy recovery." we'll keep you up to date on that and all the coronavirus stories and head to cnbc.com always carl, back to you. >> all right, sue, thank you very much. dow is up about 400 points, less than half of the session high, although all three indices trying to post their highest lows in about a month. when we come back the ceo of mayo clinic along with our friend bill george formerly of medtron medtronic, in a moment yes. it's the first word of any new discovery.

but when allergies attack, the excitement fades. allegra helps you say yes with the fastest non-drowsy allergy relief and turning a half hearted yes, into an all in yes. allegra. live your life, not your allergies. but right now, the world needs all the good that we can do. to all of our employees and everyone working to keep america strong, thank you.

welcome back we're getting an update on which executives will be attending the white house meeting later this afternoon. i believe on small business. eamon javers has that for us >> yes, sara, that's right white house officials confirming executives from a number of top financial companies will be at the white house today at 3:00 p.m. for a small business meeting, those include visa, mastercard, goldman sachs, jpmorgan, citi, wells fargo, grand rapids state bank and southern bancorp expected to send attend yees not clear the ceos will all be at the meeting with the president later today at the white house. we're getting information on a potential shakeup in the communications department. stephanie grisham announced she's leaving as the press secretary, moving over to melania trump's east wing office as the chief of staff for the first lady she says in a statement her replacements, plural, will be announced in the coming days

we don't know exactly who is going to take over for stephanie grisham, the departing press secretary of the white house, but clearly there are a couple of new people in mind to come on board. stephanie grisham, guys, leaves the job as press secretary after about a year in office, having never once held a briefing for the press in the press briefing room, guys, back over to you >> that is certainly odd eamon, thank you, eamon javers turning back toward the race for a vaccine and a treatment, and tests for covid-19, mayo clinic ceo jian rge gianrico fr bill join us >> dr. fruggia, thank you for taking time. i know how busy you are. looks like a vaccine for broad use 12 to 18 months away so given that, we need therapies, and mayo has taken the lead on a national plasma

test to determine whether this therapy can be used. can you explain how this works, and i understand it's a different kind of test that you'll get data in real time can you explain how many institutions are involved and how is it going to work, thor this therapy going to work and how w what is your outlook >> thank you for having me on the program and thank you for the need for authentic leadership during the pandemic we are focused as is every other health care organization saving lives, developing new treatment and making sure we emerge from this health care crisis more nimble, more patient focused, and really scientists and physicians around the world are racing to find new treatment for covid-19, and the convalescent plasma initiative is one of these options. we're honored that we've been asked to be the lead for this national initiative with dr. michael joyner, the principal investigator what it is that when we are exposed to bacteria and to

viruses, we mount a response, and that response are tiny proteins in our blood, they're called immunoglobulins or antibodies and help us fight the disease. people who recovered have a lot of these immunoglobulins you take blood from one of these people, extract the cells, left with a yellowish liquid called plas ma. if it were to work it would be helpful for patients initially who are seriously ill and use it for patients moderately ill and also use it to make sure that people at most risk, for example health care workers can get it and be immune from the virus for a few months i said if it works, because we still need to find out this is not a new treatment. this has been available for probably just over 100 years, used first in 1918 and then used in other pandemics

sometimes it works, and sometimes it doesn't, and when it works, it's because those little proteins, those antibodies can neutralize the virus or cause an immune response and so we will find out, but what has been amazing about this, is the degree of collaboration that you mentioned. so dr. arturo cazataval and other doctors got together and a clinician over 100 sites including the red cross and industry that are focused on making this happen and being able to deliver this option to patients the fda has been remarkably supportive we went from mayo clinic starting to put the proet coal together to 18 days later it's live, it's happening there are other 100 sites involved and that really speaks about the collaboration that is needed to fight the pandemic like covid-19. >> so thank you. let me shift now to testing,

because we need test data. there's been a huge shortage of testing. they're starting to come online, mayo released a test several weeks ago to do more of its internal testing but yesterday i believe you released a serology test how is it different than some of the other tests out there and how do you see it being used >> well, bill, we need to answer a question that has been posed many, many times how many people in this country have been exposed, infected with covid-19 the serology test allows us to answer that question i mentioned in my answer about convalescent plasma how there are these tiny proteins floating around in our blood called immunoglobulins and a particular type called an igg you have an i go gg antibody it means you've been exposed to the virus. we have an ability through the serology test of being able to find out who was exposed to the virus. now initially, that would allow us to answer that question

if we do find that that exposure also gives you immunity, then we can also use it to determine who is now immune, and we can also use it to find out at a large scale what we can expect in the future, because we get a better idea about how many people are immune within our society, but initially, the strength of the serology test is going to be finding out exposure that's important to point out it does not replace the other test, the molecular test like with others, we have raised to have that test available. we got it on the market in three weeks. now the serum test, serology test we're able to answer more than one question but if you have symptoms the right test is the 3408 collar test >> dr. fruggia, it's sara. sorry for mispronouncing your name earlier seems to me the serology test for antibodies is key to figuring out how we get back to work and back to some semblance of a normal society.

where are these tests and why aren't they being sort of released so that everybody in the u.s. can get them right now? >> so first of all, thank you for asking that question, because that's a crucial question now, intrinsic in that question is the answer that we need to still get, which is having those antibodies doesn't make you immune, and for how long, because if it is, we find out that is indeed the case, then yes, could you start targeting populations that can go safely back to work now mayo clinic launched the test yesterday, and we have to scale up it is important to realize that there are many variations of the test, and each have their own sensitivity, how good it is at picking up the antibody and specificity, how good is the answer and really want to test that gives you a very good answer, and we had spent quite a lot of time working out the details to make sure the test we are offering indeed fulfills those criteria once you do that, then you can

scale and we are in conversations with a variety of entities to see how rapidly we can scale as well as other heads of organizations that are doing the same >> doctor, it's carl i'd love to get your view, and bill, yours, too, in terms of therapeutics when is the deadline by which we pretty much need to have one available to make sure that the fall and winter later this year are not going to be equally as painful as this one? bill >> we're canceling things all along and people are looking at school deadlines, getting people back to work i personally think it's going to be a steady flow back to work and as we get the tests out there, we can find out who is immune and more workers will be able to get out there and physical distancing is still extremely important and people staying at home and working from home, carl, but i think we'll see a steady going back to work and hopefully that will come this summer sometime, i would say sometime in july, but i

think dr. fruggia is closer to this than i am >> thank you, bill, and of course, what you said is absolutely correct we have to remember that's still the best anti-viral is washing your hands and that social distancing works now, while we are doing those two things and we're treating patients, we're also bringing new therapies and convalescent plasma is the one i talked about, there are others. there are many drugs that are being tested and new molecules being tested so what we'll see rather than a fixed state is as we get better at treating patients, then we can start shifting a little bit what we are currently saying the ultimately we need a vaccine and we all know that vaccine is most likely to come in the beginning of next year, and so what we have to do at the moment is plan, plan to have better therapies, because if you can save somebody from going into intensive care unit, then you need very fewer resources, and also plan for the fact that

there may be a second wave and be ready for it, but i am optimistic that we'll continue to find better ways to treat covid-19, which is why social distancing remains very important. the further we go out, the better treatments we're going to have >> dr. frunggia, it's david faber. as you continued to increase the number of tests that you are giving, you're running it a little less than 2% positivity rate is that significant in any way is there anything that can be gleaned from that? is that lower than what we've seen in terms of the national average so far >> so that positivity rate depends on really on how who you test, and how often you test if you test a group that you really are highly suspected to have covid-19, the percentage is going to be higher i thisnk what the 2% rate tells us is that in fact social distancing is working, there are less people that are being

infected, of course in some areas it's very high, and i don't want to diminish that but overall that we are seeing some effects that are positive from social distancing. the 2% rate is lower, is lower than other places that are testing and that i think is a reflection of mayo's ability to test more people, and we do it in multiple states we are of course in minnesota, wisconsin and florida and arizona, but currently through mayo clinic laboratories testing in over 40 states trying to help people get rid of their backlog, we try to get the tests back within 24 hours. >> and just shifting, doctor, to the treatment you're working on, the convalescent plasma, there are concerns i guess about supply give us a sense of how many severely critically ill covid-19 patients can be treated from a plasma derived from a single patient who has recovered and whether that's going to be an

issue. >> you can treat between two and four people as a single donor. we have set up this website where potential people that have recovered can put their particulars in, can be contacted, and then blood banks across the country can start getting that plasma and distributing it through the red cross and other mechanisms so it's scalable, but that is why i said at first we have to focus on those who are severely ill as we scale up, and as more people recover from covid-19, as serology becomes more available, then that pool will continue to grow and we can continue to offer this to more and more people i will however emphasize this initiative is something that we feel can work. there are good examples why it can work some new data from china, couple of anecdotes from this country suggesting it can but as you

well know, we need to do the study to actually find out, and therefore, what we're doing is doing the study at the same time as making available, because of course we all know the time crunch we're in. >> dr. fruggia, i think final question from my side is, you've emphasized physical distancing pleased to note minnesota is 50th among the 50 states in per capita cases, maybe people are very disciplined here, but we all fear kind of an overcrowding like we're seeing in new york, starting to see in detroit and seeing in milan and madrid i think one of the keys medicine is how can you treat people from a distance using telemedicine? until recently the restrictions and rules were very stringent from cms about doing that and getting reimbursed and people had to come in i think now you're able to frtra from a distance under the emergency order the president's put out. can you explain what you're seeing happening at telemedicine and what you'd like to see going

forward so instead of this just being an emergency order, it can be the way we work all the time and not have to drive all over the country to get to a major medical center >> that is spot-on for several years, three, four years we've been talking about the revolution of telemedicine, telehealth and it hasn't happened because there always was a reason why it shouldn't happen now the covid-19 pandemic we're seeing a lot of regulations temporarily taken, restrictions taken away and at mayo clinic it has rauesulted in a massive difference less than 50 telehealth visits a day to several thousand a day and it keeps growing and we're finding we can do a lot that way. it will be important as we're laser focused on saving lives to be able to catalogue the lessons learned so some of the changes that have happened become permanent, because we do want to emerge from this health care crisis with a better more nimble health care delivery system. telehealth will be a big part of

that >> dr. faruggia, which hope you'll stay close and bill george, thank you as well. >> thank you we're going to take a quick commercial break here. rally is hanging on, third time higher in the last four sessions intel's ceo bob swan in just a few minutes away stay with us especially now,e for you - 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.

costco and walmart seeing a

big box breakout but traders are split on which could outwere in nde long-term. fi out more on tradingnation.cnbc.com more "squawk on the street" coming up. for nearly 100 years, we've worked to provide you with the financial strength, stability, and online tools you need. and now it's no different. because helping you through this crisis is what we're made for.

okay well s&p began the morning at actually above 2750. we have obviously lost some ground since then. let's bring in mike santoli our senior market commentator. it's the interesting, the asymmetry between some of the bullish tactical calls over the couple hours versus goldman's david kostin who argues we've not had the washout on sentiment that you need for a sustainable rally. >> it's interesting, carl. i think tactically short term in terms of concentrated liquidation, all those things you see in an immediate moment you checked off all the boxes for having some kind of a washout back a couple weeks ago on march 23rd. but it is true that this decline has happened so quickly you can

absolutely make the argument that psychologically, professional investors have not really given up on the idea that this could just be kind of a quick one and some kind of a v or contorted looking w i wouldn't argue that point with david. i would simply say that what we're seeing in the last couple days is the flip side of having really no reliable real-time economic information to feed on and, therefore, the market can use incremental signals from, you know, the viral infection rates and things like that to just rush to the next slightly less dire point on thes the probability spectrum it's trading technically we're trading at these levels. everybody has been targeting just over 2700 to say on the downside back in march, that was when the decline really accelerated and became very disorderly in at about march 13th or thereabouts. i do think that's the push/pull we're going with right here. we haven't seen a reckoning in terms of the economic damage,

exactly how it's going to play out, but i think you could absolutely make the argument short term, market got sold out, things looked incrementally less dark and we've reprised for it i wouldn't be adverse to the idea we're setting ourselves up for a little bit of a disappointment, proving that, you know, it's going to turn both ways. >> yeah. to that point, mike, by the way i'm still trying to get that image of the contorted w out of my mind, to that point -- >> the second v being a little higher, yeah. >> i see okay got it in '08 kostin pointed out we had a number of significant rallies, but we obviously retested the lows and didn't bottom until march of '09. >> yeah. >> are there corollaries here? >> yes i mean there's corollaries in the sense that the history of bear market does tend to say that that's one playbook the difference, though, david, i think is, in '0 8 when things started to get dicey at lehman brothers the market had been

going down for a year. we reprised down 35% from an all-time high in a month it just seems like a different type of shock. i think we have to acknowledge that that that kind of '08 playbook the likelihood of some kind of a retest or another kind of wave of concerns that comes and takes the market lower or mutes the gains, but i don't know that you can really run the script just because of the variances. also, look, you and i were there in 2008. how many people were saying, you know what, this is exactly like what happened 12 years ago and we got to run that playbook today. i don't know if that was the case i think we were looking at the 2000 example, which was ugly and did last for two years but didn't have the same cadence >> yeah. some people going back to the '30s which nobody can remember except for you, mike one interesting feature of what's happening right now in the markets is that stocks seem a lot more sensitive to news around health, the health data,

the hospitalization rates, than the economic data and i say this on days where we got, you know, those record jobless claims, that terrible number last week and that very disappointing jobs report and the market was able to rally on those days, so just wondering what the correlation here is between the markets and the economy when we also have this additional huge news tim on what's happening on the health side. >> we use what we have and every day we get the health numbers and every day we're trying to extrapolate out what that means for the whole trajectory i would say that when we rallied in the markets on those awful jobless claims news it was after the market went down 35% so essentially the market told you that was going to happen, it happened, didn't come as a surprise looking ahead means trying to figure out incrementally where the next data point is going to come what's interesting is last week here we were chatting and the idea maybe was floated out that the fact that wall street is in new york, maybe we're too

fixated on how dark things look in new york and i said yes, the corollary to that is if things start to turn for the better in new york, are we going to extrapolate things getting better everywhere. maybe that's what's been going on this week as well >> all right good way to frame everything, mike thanks talk to you in a bit mike santoli we'll take a quick break we are expecting governor cuomo's briefing in a few moment and talking to intel's chief bob swan in the 11:00 a.m. for now trying to hold dow 23k back in just a moment. it up, there is a chance that that's the last time. 300 miles an hour, thats where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me that i'm protected. during turbulent times, consider protected lifetime income from an annuity as part of your retirement plan. this can help you cover your essential monthly expenses. learn more at protectedincome.org .

but when allergies attack,f any the excitement fades. allegra helps you say yes with the fastest non-drowsy allergy relief and turning a half hearted yes, into an all in yes. allegra. live your life, not your allergies.

dow up 400 the fed is running into trouble when it comes to main street

lending. steve liesman has the story. steve? >> this has become a priority at the federal reserve and they are working hard to make this happen the $350 billion small business loan is going to pale when and if the fed gets this up and running, $450 billion from the treasury they can maybe scale up as much as $4.5 trillion worth of loans we're told they are talking to the private sector and should get answers in seven to ten days there's a lot for the fed to work on. some of the issues you're dealing with in the c.a.r.e.s. act it says they can't be loaning to companies involved in share buybacks or dividends over a certain period of time companies have to be u.s. based. the fed has to come up with an ownership test on that compensation restrictions an the conflict issues of the fed loaning to the administration or officials in congress. there are issues that get to the core of what the fed is and ha it can normally do that the fed

has to grapple with. one of them is the fed is not supposed to take losses on loans that it gives. it has to find a way to incentivize ways for banks to borrows and figure out if these are nonresource loans. the fed has to find liquidity and not save failing companies a former fed official who was involved in some of these programs says it's going to be challenging to design and implement a main street lending facility that's going to be impactful. not saying it can't be done but much easier for the fed to operate in capital markets one of the issues is should the fed lend to oil or retail companies and the issue is, were these companies already going out of business or were they really hurt by the coronavirus it's going to be a very tough judgment call on the part of the fed but there's a lot of money upon which to judge. carl >> steve, well said. we're going to have to watch