bad job by me. that's a great stock to own on a dip. >> john, something real quick? >> boeing, 160 calls in may, scott. it is only 10% of the cost of owning the stock but those don't show. >> appreciate it see you again tomorrow kelly evans picks up our coverage right now thanks, scott. hi, everyone after rallying more than 7% yesterday, stocks are a tear again today and on pace of the highest levels in a month. the dow up nearly 700 points, 3% gain, slightly smaller for the s&p 500. nasdaq up 2% interestingly and a little bit of a laggard. more indications that the spread of the pandemic may be slowing in hot spots and senate majority leader mitch mcconnell saying he is working with secretary mnuchin and leader schumer to approve further spending for the small business loan program as soon as thursday looks like markets took a leg up

on it. let's get more with bob pisani. >> we have had an enormous move, 250 points in the s&p 500 in two days and stocks getting chatter on twitter about the moves in the markets but 250 points on the s&p in a day and a half is really quite a move. today up 72 points alone on the s&p 500. some stocks need to be cautioned here in terms of xub raexuberane kohl's was a $45 stock this is with the rally of the two days this is all across the board the big names that the travel names, the royal caribbean here up 20% today last couple of days up huge. it was $110 in february. it is $36 now with the two-day rally. same thing with the reits. kimco up it was $18 a month ago it is $9 now

same thing with the oil stocks apache 20% up today it was 23 a month ago. and look at it now it is what $7 they cut the dividend 90%. be careful finally just note with the s&p up 250 points in the last 2 days, where's the vix? what happens down four points in 250-point move that is indication of people nervous an put buying out there with the rally back to you. >> bob, thank you so much. >> jpmorgan with an optimistic note saying the apex in new york state is likely imminent as opposed to a month out an analyst saying that big data showing that social distancing is working overall i'm joined by barry banister good to see you. are you turning more positive constructive on these markets? >> on march 19th, we wrote a

note called we see an s&p 500 relief rally to 2750, up 15% by april 30th there's a couple days before the bottom and then sunday we wrote a rit ration note and, of course, yes, it is a powerful rally but the market surprise factor drove us into the fastest bear market in history and then enormous fiscal 2 trillion plus monetary policy, 1.8 trillion response driving an almost record rebound, as well. >> right we now have reports that the $350 billion small business lending program could get -- if marco rubio's suggestion is adopted, $250 million more behinld it half a trillion dollars s. that a good or bad sign we want the companies that need help to get it but the scope of the need is large. >> certainly there is a scope of the need and a lot of this was self inflicted comparing this pandemic to, for example, the 1957-'58 or 1968

pandemic of influenza. this is a coronavirus, however but one of the things that we are finding is that the increase role of the government and the economy in the long term and this blowing out of deficits and the fed having to step into this role that they're playing is probably going to lower the longer end returns and enjoy it while it lasts but expecting a weaker market over five to ten years than the proceeding five and ten yores. >> could you elaborate a little bit? there are some who say once you have equities trading at such low prices it implies higher future returns why do you think this time is different or not a valuation story to you >> oh, it very much is but valuation is not that low. the penetration of equities within household portfolios is still fairly high. we look at cape ratios and other

specialty valuation methods. within of the things that we had was a 17% compound 10-year decade in the 10 years after the financial crisis in february of 2009 to 2019 that return simply can't be repeated based on the work that we have going back 70 or 80 years so what we are doing now is enjoying the rebound to the perhaps 2800 or so, just under that, which is a fibanachi one half retrace and then beyond that we have to monitor the fact that the old days are gone and that this new role of expanded government and weak earnings on the horizon probably does inhibit the longer term returns. >> finally, if that changes where you'd want to invest, what sectors do you think are most attractive or which companies within the sectors and how you think this leadership might look. >> very much so in the last 25

years when your defensive sectors have led to a spike, vis-a-vis sick -- when your defenses outperform the cyclicals and peak, when that peak occurs, a huge rally always ensued and that looks like it's occurring now and emphasizing the cyclical side. the tech winners, the semis and hardware, should do well that's going to be a reflexive movement and see we believe a weaker dollar as we look into 2021 energy stocks the bounce back nicely materials benefit, as well i even think there's a highway bill next year and probably have the industrial stocks doing quite well. >> yeah. i was driving in this morning thinking there's empty lanes that could be doing long-term

construction projects with little disruption. anyway, barry, great thoughts in there. really appreciate it thank you, sir. >> thank you. we have some news from the bond market now. the 10-year notes went up for auction at the top of the hour rick >> absolutely. grade for demand at top of the 1? i gave it a c-minus. just a smidge below average. 25 billion 10-year notes lowest ever at a dutch auction for a 10-year. .782 so a bit higher than three quarters of 1% and what's interesting here is the yield obviously is the lowest but it tailed just a little bit so the c-minus comes from the fact. 78.2, trading around .78 on the one issue mark if you lock at the metrics, bid to cover 2.43. 13.2 on directs. they were all fairly close to 10

auction average and c-minus. we have 30-year bonds tomorrow to complete the supply and i was very impressed but let's not lose sight of the fact with the liquidity and the provided by the central bank it doesn't surprise me that 10-year's found a good audience. back the you. >> thank you so much now we turn to the 2020 election it'll come down to a handful of states and the question is how coronavirus will change sentiment. kayla tausche is here with the states of play survey. kayla? >> reporter: kelly, voters in six critical swing states are growing increasingly concerned about the coronavirus and in an exclusive poll by cnbc and change research in april 2nd and 3rd two thirds of the voters in the states said they have serious concerns of the coronavirus and up from just 20% in mid-march now while they're more concerned about family's health than the

economy, fears of a recession are growing, too 65% of respondents believe the u.s. is already in a recession and in florida and pennsylvania a majority of voters fear it could be worse than the 2008 financial crisis in north carolina, voters are the most likely to say that the economy is doing well. michigan also having some optimism among voters there. how are the states doing how are their governments doing and voters perceive they're being successful in florida, 69% of voters believe that the state is not being aggressive enough. florida governor desantis is a close ally of president trump's, among the last to order a stay at home executive order and just did that april 1st and previously said he was waiting for direction from the white house. the approval rating of the federal government largely follows along party lines but there are a few policies, kelly, overwhelming bipartisan support and that is financial assistance from congress using the defense

production act to procure medical supplies and social distancing which a majority of these responders say they're doing. kelly? >> kayla, stick around key swing states of florida and michigan not that confident of the government's response of coronavirus. will it impact the election this fall let's bring in brian swartz. brian, good to see you what jumps out to you about these results? >> it is really interesting. president trump when he came into office really pushing and since then pushing how great the economy's been and the coronavirus really is kind of muddied -- muddled the message a little bit an in the states of arizona, michigan, pennsylvania, north carolina, these are key states for him if he wants to go on and get re-elected. some places he'd beaten hillary clinton in 2016 by a hair. so it really is going to be interesting to see how it plays

out. you'd think that the -- with somebody like trump who keeps on touting the markets and i'this really could be a problem for him if people continue to fear recession. 81% of the respondenters fear a recession coming up potentially and the other part is the jobless claims, we have had millions of jobless claims in two weeks. if that trend continues, voters in these states really could turn on trump and that could be potentially a boost of former vice president joe biden who's a likely democratic nominee at this point an we have to see how it plays out but if the trend continues president trump could have a problem in the re-election. >> kayla, if he anticipates that to see the policy response increase or change >> well, kelly, we know that the white house had been readying a playbook to stave off a recession and early'd up the meshes and expand what they were

thinking of. i think the white house is in a difficult position because they're throwing everything at this effort that they can from a policy perspective to try to shore up the economy and get money in people's hands. i think it comes down to who voters feel is at fault for this and how long it lasts because looking at the approval ratings, 62% of the voters think the state is doing well and the president trump handling of the coronavirus crisis is just 49% so do voters feel that this is an act of god and the white house is simply having to respond to external forces outside of its control or, do some of the critical independent voters fault president trump for not acting quickly enough to try to stave off some of these statistics and some of these deaths in these states like new york that are really, really -- i mean, they're just gut wrenching, how do voters feel about that and who do they lay the blame with >> absolutely. brian, the final word here. >> yeah.

i would say keep an eye on the small business optimism index. down eight points in march, lowest since the group started do do that group that's again a critical point of reference as we go further and further into the election as we get closer to november and voters maybe they do have short memories but i tell you what i don't know that they're forgetting these millions of job losses as we get further into 2020. >> okay. well, we thank you both. we appreciate it again, the results of cnbc's survey kayla and brian talking about the implications. coming up, as more americans file for jobless benefits states are super overwhelmed. we'll look at how they turn to big tech for help. supply swap, ventilators shipped around the country as states with extra try to help those states most in need. we have details ahead. exxonmobil announces it's cutting cap-x spending by 30%. if they have to make the big

lar cuts what does it mean for the rest of the industry

welcome back let's get to the very latest in the coronavirus outbreak over to sue herera sue? >> kelly, thank you very much. new york now has more confirmed coronavirus cases than italy, almost 139,000 making it the global epicenter for the virus dozens of people lining up just north of miami to file paper applications for unemployment benefits the state's jobless website

failed to handle a doubling of its usual traffic. "wall street journal" reporting that of the more than 1,000 companies responding to fema's call for virus supplies, only 3 are selling to the government many wanted money up front and fema will not do that. meantime the ufc planning to start holding fights next weekend and fans will not be present. the exact location isn't clear but the league president said he's close to a private island for the bouts. and in the uk, british prime minister johnson in the icu eye in it at a london hospital and he is getting oxygen but not on the ventilator we expect another update i about 45 minutes to an hour. for more on the coronavirus coverage, you can get to cn cnbc.com. >> do you think there will be an update on johnson's status >> yes dominic raab deputized for the

prime minister had a press conference a short while ago and getting comments if him and let you know what he said and then in 45 minutes expecting an update, not a formal news conference but they are being pretty transparent about how the prime minister is doing. >> yeah. it is awful, scary so thank you very much. let's turn to the fallout of the pandemic impacting states here in the u.s. in different ways some returning to tech for help and some turning to each other rahel solomon is looking at the states enlisting tech companies and ylan muoy has the story of swapping medical supplies. rahel? >> hi, kelly frustrated unemployed workers calling on cuomo of new york to waive the call or a requirement that some applicants have to first call before their processed and the application is processed. one twitter user check out the tweet telling us that she called at one point 1,000 times in a

day still didn't get through another worker said she filed the unemployment claim on march 24th, told to call she is doing that 200 times a day since then also hasn't gotten through >> it feels like a nightmare and i don't want to deal with it but it is making me emotional. i didn't expect any of this to happen and, like, i was so proud of my job and it is just like i feel stuck. >> so we know that kansas and massachusetts have both reached out to aws enlisted support to both expand capacity and also sort calls as they come in so essentially when calls in sort them to the right department and hopefully get through the process. a spokesperson said they automated more functions so there's hopefully fewer reasons to need to call an trying to do their part, as well. >> absolutely. they're all trying to deal with the influx

now to ylan and the states trying to step up and help those that need the medical supplies by i guess effectively donating them how does that work >> yeah. the states trying to get what they need from each other so california is loaning out 500 of its own ventilators to other states while washington has said that it's returning 400 ventilators to the strategic national stockpile >> so once we saw that it was very likely that we would have enough ventilator capacity we freed that up for other americans who might be struggling for breath right now in other states and we turn that to the federal stockpile. >> oregon was the first state to announce a ventilator swap those machines started to ship out last night this video from the governor's office saying that fema is coordinating the logistics, supposed to be heading to new york though the arrival date and

time are still uncertain now, kelly, these states are still suffering from shortages of other supplies, masks, gowns, gloves but i am told that there are informal discussions to try to broaden this effort, share what they can, california's governor said that he hopes that if the tables were turned other states would be there for them back to you. >> remind me of what happens with the utility companies with a big storm or a power outage shipping in workers and gear and supplies from other states and you do wonder if this is something that could be formalized in the future. >> right so you have heard that governor cuomo from new york obviously talk about the possibility of a national purchasing consortium though the challenge is two fold one to take it national that then becomes the role of the federal government to act on behalf of all 50 states and a very broad manner is there is not enough product to acquire so even if the states do decide to share ultimately there is a shortage and that needs to be

addressed. >> absolutely. thanks coming up, silicon valley is reeling from layoffs as start-ups look to rein in spending now also looking to the new lending program for help but so far no luck. we'll tell you why. plus the street is bullish on hotels, booze and video games today. and remember you can always watch or listen to us live on the go on the cnbc app "the exchange" is back after this (upbeat music) - [narrator] at southern new hampshire university we're committed to making college more accessible by making it more affordable. that's why we're keeping our tuition the same

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feels like there's no barriers between departments now. do you think everyone appreciates it? i do. huh... forgot my glasses. serivcenow. the smarter way to workflow. welcome back to "the exchange." let's get to the calls of the day. first up, marriott upgraded to overweight and price target lowered. trading at 77 today. the company will have almost three quarters of its rooms open globally by q3 the analysts expect and a dividend next year and add that the stock is attractive compared to peers at 10 times earnings. shares up 9% on the back of that upgrade.

constellation brands upgraded to a buy with a $180 target with the analyst saying that the long-term opportunity outweighs the near term risk and believes that after restrictions are lifted we'll see a lasting behavioral shift for outdoor gatherings over bars and restaurant traffic and will help constellation brands up 10% finally, video games, wells fargo initiating activision with an overweight and $75 target, 27% upside from the current price and the analyst said that the stock is exposure to long term secular growth tends in the market and a portfolio of seasoned franchises. and right recipe for low risk growth and activision blizzard shares down 2% today. oil continues to be volatile and whip around as investors ask themselves will they or won't they with opec and cuts but will cuts bring stability as we head to break, here's

the retail names seeing a big bounce today kohl's, nord storm up better than 2%. 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

welcome back hanging on to a 640-point gain on the dow less than 3% higher and the s&p 500 up 2.3%. the nasdaq up less than 2% materials, energy and financials sector leaders today and within the dow the biggest gains are dow itself, american express, caterpillar, goldman sachs and exxon and dow, inc. up 15%

exxon adding about 6%. speaking of which, the company announced a series of moves in face of the recent plunge and reducing capital spending 30%, cutting operating expenses 15% and the ceo said that the dividend is high priority and willing to use the balance sheet to support it if necessary. for more on what's necessary for oil, i'm joined by dan pickering and brian sullivan with us, too. great to have you both brian, i want to start on what exxon announced, shares up nicely and people say, well, how much balance sheet support will they have to use for the dividend is that the right call >> the right call for opec, kelly. exxon is getting in line but i'll take a different side of the story which is what common is doing is what saudi arabia wants to see i mean, we have made it clear that opec is not going to do anything as a group, come back together, make a cut unless the

u.s. is involved we don't have a national producer and like one company to shut off the switch but these kinds of capital spending cuts will result and dan would know more about the numbers than i do but result in a couple of months or quarters in a decline of oil, basically what i have seen so far from the cut that is we have had announced, kelly, i would say down million to 2 million barrels in u.s. production naturally by the end of the year. >> i'm so glad you said that because, brian, i was thinking about it more from the gdp side than from the production side so, dan, how much of a production cut is exxon effectively signaling here >> i think if you gross up what they're doing because exxon is cutting 30%, the rest of the industry's cutting 50% or more. and so, when you start thinking about that we are talking brian mentioned a million barrels, maybe two. i don't know 2 million by the end of the year but certainly 2 million by the end of next year

and it is a significant drop the question is whether or not saudi and russia take our economic shut-ins as good enough for a deal to go forward. >> i also wonder, dan, talking about 2 million barrels by the end of 2021 is nothing compared with the oversupply of right now. >> too big of a demand problem in the near term so what we're really talking about is writing the second half of this book the things get worse before they feel better. filling inventory 150 million barrels a week and when that is happening the business and oil prices is challenged the question is how quick can it get better we need demand to get better and the virus has to go away and then the supply cuts can matter so it's a second half story, not a first half story. >> brian, where are we on opec having meetings and virtual meetings or not having them. where are we in all of that? >> right now there's a virtual

meeting planned for thursday, supposed to be yesterday hard to get that together i guess in time, kelly there's an opec sort of plus plus plus plus anyone who wants to join and u.s. and uk and canada and we have heard that the u.s. and uk and canada have not responded saying they will tune in because, remember, all virtual obviously or participate in any way there is going to be, however, though, likely a g20 meeting on friday why does that matter it's rotating presidency is saudi arabia this year and it's likely that the saudis use that to sort of become a super opec if you will. so i think that those are the types of things that opec to what we're talking about the cuts coming down the line and production cuts and the texas railroad commission thing you had that ryan's sitting on the other day, if opec hears that, they may say, okay, the u.s. is willing to do its part we're willing to do our part to dan's point it is never

matching supply demand and make sure that you slow down the fill of those oil tanks. >> like dan said that we are talking about what happens in the sec half of the book we know the first half is pretty ugly and where we still are so let me ask you about the role of texas. we had the railroad commissioner on the other day and he said they're going to take the queues from trump but you're saying that trump appears to you indifferent. >> yeah. i think the president said the market's going to let it settle out and figure it out so i think that essentially he's saying shut-ins will happen because of no place to put oil. that's not a voluntary cutback that is an involuntary cutback, if you will. i think that texas with a governing body of the texas railroad commission and may prorate or shut people in on a prorated basis so, you know, texas will sort of lead the country here and there's a meeting next week and a decision on april 21st on what they will do and three people

hold the fate of texas in their hand sitton wants to cut. >> dan, finally, i think this is the bottom line for people watching right now you say if i'm reading this right this is the best energy investing opportunity since 1986 or starting to be? >> i think so. it's so bad that it's turning into something good. so that the sector's off 50% it's bounced 30% from the public perspective. but the reality is assets are going to get very cheap. i think worse before better but then going to be -- the companies that make it through this stronger and the opportunity to participate in what is an ongoing need for energy is there and this is a great time to put money to work. problem is it's going to get tougher before it gets easier. >> brian, how does the media attend that opec plus plus plus meeting sort to speak? >> oh!

we don't what the media does and by the media i mean me, i can't speak for anybody else, there's no stairwell this time, virtually, you have sources that's why you go in person. make friends, contacts and what's app or text or call the sources saying, hey, what's being said on the call that's basically all that we can do but while trying to manage a 5-year-old, a dog, a wife working from home and anchoring a 5:00 p.m. show and will be done, kelly! >> well, we look forward to that and we thank you both for joining us today to talk about this. >> sure. >> thank you. up next, tech is not immune to job cuts in the coronavirus crisis the details on which start-ups feel the most pain. plus, many experts say germany an parts of europe doing better job getting money to main street than here in america. what we can learn from them is coming up. we'll beig bk. rhtac

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welcome back job cuts have been a quick but painful way for companies to rein in spending and start-ups are not immune to that kate rooney joins me with more on the impact it's having there. >> kelly, job cuts are becoming a painful reality for start-ups. a quick update on those numbers. one realtime tracker shows more than 12,000 start-up employees laid off since the coronavirus was declared a pandemic. that's across 162 companies. and a new survey this week from is silicon valley leadership group shows a fifth of major employers in the bay area either actively considering layoffs or gone through with them and holding out hope to clarify what are known as affiliation rules, those make most companies ineligible for the emergency loans. over the weekend, though, they were disappointed.

treasury clarified that nonprofits and faith-based groups to apply for protection loans but most vc-startups are not included. >> are they laying people off because the sectors are in distress or because they survive on funding and ill liquidity is dried up >> little bit of both. you see it in hospitality acutely and startups are doing well you see certain telemedicine and bio tech companies still able to lose money and overwhelmingly investors tightening the belts and not only do they have to lay people off potentially but they may also have trouble funding going forward so investors i have talked to said they're in survival mode, telling the current portfolio companies to rein in spending if they can't raise more money. >> i understand. absolutely kate, thank you so much. well, some experts say that europe's approach to

unemployment is better than americas in the coronavirus pandemic as foreign policy mag put it america is having an unemployment apocalypse, europe chose not to joining me is a guest and steve liesman. steve, i just want to ask about headlines from former fed chair bernanke that just crossed where is he speaking and the thoughts on the coronavirus? >> he is speaking at brookings in fact, he is on my computer, other computer over here and i'm going to take the moment here to lower the audio. there we go. he is basically backing the fiscal policy and programs out there. he is supporting what the fed is doing. he was asked whether or not he feels like the fed is going too far and he doesn't feel they are. he said that there is really no limit to how much the fed's balance sheet can grow in this situation. he's expecting a sharp downturn, has questions of whether or not there's going to be a quick

bounceback he is concerned that, for example, we come back to work sometime in the early summer and then another episode in the fall and so his basic outlook is geared to the public health response in the first place and then in the second place how long this lasts. he said not the great depression but it could be a little bit more painful and lengthy than we think right at the moment. >> yeah. i like how he says a natural disaster, that was more of a man-made event okay let's go back and raises the issue of jobless claims. katherine, what is the european approach to jobless claims do you think a model that could be coming here >> so the really interesting component is every country is doing it in a different way. that's kind of a bit of a problem, frankly that's why we are seeing so much haste on the european side meaning to say in brussels, true brussels to try to come up with something that would be a sort

of an intra-european mechanism the most generous companies trying to shore up the labor markets are germany and denmark. germany with a scheme built over time, rainy day fund of 26 billion euros or labor markets through a very specifically german scheme of short work saying that the government covers about 60%, 67% if you have a child of the income not making or being reduced from making through your corporations and the idea is similar idea in denmark, too, is to reduce the costs for highering or rehiring if you lay people off. >> right. >> so the idea to support both your workers so that you create worker fidelity if you will to companies and let companies come back, get back online faster and the country's going to shoulder the burden of proof for that and now estimates go, going to

eat up probably half of that rainy day fund but something that the germany government put in place after the financial crisis. >> a lot of people said germany bounced back rapidly with the short work system but i wonder if it comes at the cost of flexibility. the reason they have is it it's hard to lay people off in germany. do we want america going down that road? >> first and foremost you're not going to get the same situation in the united states as you are in germany or emp in europe. we have a totally different system of sort of social welfare and transfer payments. for the german economy that makes sense because what are the bulk items in the german economy? machine building, automobiles, they're big-time manufacturing jobs and even as we look ahead around what could the next three months of recovery post-reopening in about two to three months look like then sectors likely going to benefit are going to be able to come back online are service

economies like the uk or large parts of the united states hit harder because of the percentage that services are in this economy or the uk, for instance. >> steve, what lasting changes you think we might experience to the way we do jobless benefits in this country from the financial crisis and now the pandemic. >> yeah. first of all, i actually went over to germany and did a story on this shortened work week and i don't think there's anything of implementing this in a downturn that would limit flexibility. i guess it would limit flexibility of workers to move to another sector on the way back but the question becomes in a downturn if you want them to remain attached to their existing workplace and ease the burden of rehiring them and get a quicker start so that's a question i think we are going to rethink the entire social safety net system you see what's happening now even the astonishing numbers

that we have on jobless claims are low because of the inability of states to process them. the unemployment claims is first line of defense out here congress had to raise that amount and there's the debate of how much it raised it. there's a debate about whether or not the fed should have to come in. this is the second time around, kelly. the fed had to come in and backstop the financial system and the banks are doing better now but other parts of the system are not so i think when we have a chance to catch our breath we are going to go back and look at the social safety net, take a look at the fed's proper role here and why once again it has to come in and backstop the financial system. >> katherine, what do you think if we are in the luxury of being able to pluck what works and leave what doesn't what should we pluck for what happens in the u.s. in the future >> i think it is critical to have some sort of backstop, an employment backstop is absolutely critical because, again, what are the costs? we have alluded to it.

what are the costs to rehiring those are enormous right? retiring, retraining, repositioning within the economy and we in the united states don't have a full, you know, comprehensive view of what that actually means and further derail or slow down economic growth in this country so to have that sort of backstop i think long term because, again, you know, we are going toi ine inevitably face shock and we need an insurance policy and work in two different directions we talked about it we need that medical solution. we need to ensure that our companies can get back to work the way to do that is for those backstops and through the government >> steve, since you kind of said there that we need to rethink the entire social safety net, what else are you hearing that might be part of that rethink? >> well, i mean, look at what

the fed is trying to do right now, create a main street lending facility a series of enormous, enormous challenges to the federal reserve from the stipulations in the c.a.r.e. and not taking losses and who will backstop main street, private business in these situations what's a way to get the money out more quickly to the individuals an help them out in the event of a sudden shock like this i think there's things to think about here i think we are doing pretty good given the state of the system before we went into this all right. thank you both we appreciate it steve liesman, katherine, thank you so much. up ahead, another update for the markets after a massive gain yesterday, the dow's third biggest point gain ever. so what happens now? our guest said there's one key thing to watch for in the path

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they are all moving higher jet blue is having gains of more than 10% there are less and less passengers traveling yesterday only 108,000 went through the system versus 2.38 million last year. after seeing big declines, the airlines are napping back. all three major indices are up more than 20% from their 52 week lows ha happens from here and which

indicators do we watch what are you watching? >> i think the market is resincerely yours,ing. what needs to be seen is how the unemployment data comes out. this is unprecedented since the great depression next week i think the real thing is corporate earnings and the guidance that company provide going forward and how that comes out. i think in this environment with volatility at high levels we still need to be focusing on quality and low volatility >> you said jobless claims in terms of things to watch, you think that's number one. would there be a second or third

or do you say watch those kweekly claims when they start to fall that tells you that's the all clear? >> to me from a market invest m stand point it really is corporate guidance because ultimately the job losses will impact margins and as we ramp back up and if things are on the clear from a health stand point in the next three to five weeks then we need to see the real margin impact in corporations as they cut their work force are they going to bring back folks online at a reasonable rate. jobs are part of the picture they are somewhat of a rear view looking picture. to me it's more about the guidance that companies give going forward because we are in unprecedented areas. the key thing to watch for from a corporate -- sheets. the market is looking at balance sheets being the main place to

be i think that continue to be the case as we move through this we'll get a lot like what we're seeing today which is some of the weaker companies but the real value companies coming back and rallying back. >> terry, let me bring you in. we should let our audience know. you are only down 3% on the year which is pretty impressive given how awful the markets have been how did you pull that off and how are you positioning now? >> i think i would take a different view than the other guests when there's times of maximum pessimism that could be a time of marx mximum opportunity in te markets. about 7% year to date. we're using the rules based approach we're not making a projection about the future i do think earnings will be down i think unemployment number will be terrible as was pointed out

earlier. some of the rules are pointing us to some opportunity right now in some of the risked on areas we like technology and looking at higher corporate bonds which 800, 900basis point spreads to u.s. treasuries represented a terrific back of the truck moment to get involved we're sort of buying in some areas and i think our rules based approach prove we can be crash tested as well as participate in the upside going forward. >> that's interesting. you're look at places like hong kong to invest you're looking at sectors like technology you're doing it rules based, n n on predicting the future. what are those metmetrics? >> it's not a valuations story what it is based on is what the market is telling us which is

trend. wlooe we're looking to identify trends that's where we're seeing some movement it's a quantitative technical approach when looking at things. until the market starts to pick that up, we wait to get involved >> we have a really strong etf that's done well i was talking what about the market is going to be looking for going forward. then it went back into the market at the end of march and now we're enjoying part of that. we have a lot of higher quality moved base type of product i think the market will continue to be volatile for this time

being and i think going forward, the longer term we come out of this >> thank you, both we appreciate it it's nice to talk to you as well thank you. we have break news out of washington we want to jump to. what's going on? >> reporter: the treasury secretary just tweeting he has spoken with bipartisan leaders and at the direction of the president he will seek a $250 billion expansion of the paycheck protection program. earlier today the senate majority leader said they would consider this on thursday and try to do this via voice vote which they could do remotely $250 billion is what they are looking to expand that small business loan program by >> that's roughly what we expected in terms of senator youtu rubio saying we needed 250

billion. it sounds like the higher end of the threshold could be coming. >> reporter: it's still lower than the original size of the program. they do not feel it needs to be double the existing allocation even as we get reports that the demand has far out stripped the supply of this existing program. president trump said last night we would seem an immediate replenishment of that program. $250 billion is the number they are seeking. >> right, instead of a full 350. thanks as always keep it right here as our breaking news coverage continues. i'll join tyler for power lunch right after this one of our guests say we may be seeing better news on the out break but we still have a boat load of economic news the face ahead. we'll ask him how he sees that playing out. tim love will join us. we will weigh in on the new paycheck protection program. the struggle for his restaurants lid what business looks ke when america's shut down comes to an end. we'll be right back.

welcome back, every one. glad to have you with us our breaking news coverage of the global pandemic continues right now on "power lunch. we are watching the markets today as they post another follow on series of gains there so far wall street trying to hang on the a two day rally. that's off the highs of the day. we are seeing buyers flood the market with the dow now up about 10% this week. it's only tuesday, folks it's energy that is helping to lead the way today for a change. take a look at exxon and chevron up about 5%. exxon slashes in a