not, figuring out what the right level should be for that commodity. >> we hit on a story that i think will be a growing one in the next few weeks, tim love talking about his frustration in getting through to and getting processi ining done for his jak peacock loans and so forth that lk a xwwill be a big storyl as the unemployment claims kelly, we'll welcome you back tomorrow >> see you there "the closing bell" starts now. >> welcome to "the closing bell." stocks had surged at the start but have faded throughout the day. we're more than 20% above the march lows, currently, though, just up half a percent for the s&p. let's have a look at what's drivering the action coronavirus cases appear to be nearing a plateau in new york state, the epicenter of the

outbreak in the u.s., but new jersey reported its worst day yet. more money for small business as the treasury secretary and lawmakers signal additional funds will be allocated for the small business program, which has seen enormous demand and m.g. firms from exxon to halliburton may lay off workers in light of the economic turm l turmoil. >> we'll speak with the ceo of verizon about the company's effort to keep students informed while they are away from school. and the ceo of state street will join us. we have details on the small business relief meeting that is taking place this hour at the white house. mike santoli is tracking the markets' fading gains this hour. ka kayla, first to you on breaking

news in washington >> reporters are entering the roosevelt room right now where president trump and his economic advisers are set to host a virtual meeting with a slate of financial industry ceos to talk about what they are doing to assist small businesses. the list of attendees includes some of the ceos of the largest bulge bracket banks in the country, some credit card and payment companies as well as a couple regional and community banks to share their side of the story. an attendee on this virtual meeting tells me there are not any announcements or policy releases that are expected to be made at this meeting but that the ceos have been asked to come prepared to talk about how they plan to specifically help small businesses once the economy reopens, although the question is open, when exactly that will be at this time as well, the treasury secretary is talking about expanding the amount of money available to small businesses to a total $600

billion, proposiinging a $250 billion expansion to the existing -- 350 billion small business loan program. and mitch mcconnell suggesting there is wide bipartisan support for such a move and the senate could pass it by a voice vote on thursday we are awaiting news out of the roosevelt room as the ceos prepare to tell the white house what they are going to do to help the economy >> kayla, i'm fascinated about this, particularly we'll have a look into what's being said. you're reporting, kate rodgers, steve liesman. we've been trying to understand why there are such problems rolling out this small business lending program. i wonder if we'll see more clearly on the record right now the banks pointing a finger about what they'll do or admitting it's their fault as to why we haven't got more money out of the door so far

>> the bank ceos tend to be very diplomatic in these situations many of them came to the white house for a person about what the white house was doing to respond to the coronavirus at that time. they all suggested that the white house needed to fight the virus and then provide economic help after the fact when it was needed, and so they are very diplomatic in that sense and don't really want to be giving advice or pointing fingers in these meetings especially because of the optics around them so we'll see exactly what happens, but we generally see these conversations be 30,000-foot-level, big picture, macro views. they rarely get into the weeds and the grant laries that i think a lot of the small businesses are focused on right now. we'll see exactly what form that conversation takes in a few minutes when it gets started. >> we also might get to see into the homes of these ceos or at least their offices if it is indeed a live telecast meeting

we'll bring it to you as it starts kayla, thanks so much. stick around for reaction when we get insight into that meeting. stocks looking to close out minor leaguer for a second straight session, currently well off the highs. it's been a volatile session as is the norm of late. mike santoli has more. >> arguably that strong gain at the beginning of trading today might be nor in congress after yesterday's 7.7% increase. we're seeing a more muted level of rally at the s&p. this is a one-year what's interesting is i was talking about back in the -- we have no drawing to -- here we go back when we were on the way down, pointed out that really the market barely paused at what were supposed to be these kind of gathering point levels and maybe some support it did crack 2,700 or thereabouts was righting where the declines seem to become a little disorderly. after yesterday's rally, everyone said if we can go and retake 2,700, up from there, that might show this is assert

tif in terms of being a rally that says we've reached the low and walling off this area as some kind of a downside overshoot. that's been the conversation it seems like we did tire a lift built on the way there we want to get inside the market though this is the momentum etf as a ratio to the average stock, the equal rated s&p 500 etf if we have that chart. i was saying last week the momentum trade had almost worked too well the winners into the peak of the market -- >> the president has just walked into the roosevelt room now for that meeting we were discussing. let's listen in to the top of it and see how it pans out. >> i eat start all goemagain. we appreciate the money loaned we're looking forward to speaking with the top ceos from

the banking industry and finance industry some of you i know very well and great relationships, you do an incredible job, respected all over the world you're the biggest and the best. we're meeting to further deepen our partnership to help families and businesses during the pandemic, which is something no one ever dreamed of. i say it a lot we had the greatest economy we've ever had, anybody's ever had, and one day they said you have to close it down, close the country because we have to get rid of the plague, and that's exactly what we had is a plague. it's -- we're seeing light at the end of the tunnel. you see it i see it i think we're going to go like a rocket ship once we get back to business there's a lot of pent-up energy and demand i want to thank secretary mnuchin for the incredible job

he's don, conceiving many of these ideas. we talked late into the night. he and his staff have been incredible larry kudlow, my daughter ivanka trump, who just wants to have people working i gave her options and what do you like, and she created over 15 million jobs working with some of you but working with the biggest companies in the world they were training and training like no one's ever seen. she started with over 500,000 jobs and is up to 15 million we're grateful for the many ways in which your companies have answered the call to join our national endeavor. thank you for donating tens of millions of dollars. [ echo ] maybe it's not good equipment.

thanks for donating tens of millions of dollars for vital supplies and supporting small businesses across the country. american small business is the backbone of our communities. when you look and we hear all about the big companies we know so well, but the small companies when added together have bigger force. a lot of people don't understand that you do, we do. our nation's 30 million small businesses employ nearly half of our workforce. my administration is continue to take the boldest action in history to bring immediate relief to the small businesses so when we open up in hopefully a very short period of time, we're back into business that's what we want. we have lots of stimulus, so i think we can actually with the stimulus and with the pent-up demand, i think we can do numbers that are equivalent and maybe even doing better before in a fairly short period of time that's what my hope is and what the hope of many of you are too. on friday we launched the paycheck protection program to

help small businesses keep workers on the payroll as of today, sba has processed over $ 07 -- $70 billion in guaranteed loans that will provide much-needed relief for the more than quarter million businesses that have applied for these loan, and these numbers will continue to rise quickly, again, far greater than anything we could have expected we thank you and thank the thousands of employees for responding by the way, we're going to be going for it looks like a substantial increase in the number because we'll be running out of money very quickly, which is a good thing in this case, not a bad thing. steve will discuss it, but we're in talks to supplement the fund and do more money, so that's the way it's moving.

we're going to help these small businesses receive these moneys in record time most of you will be speak is delivering for a dcouple minutes and the room is loaded with media considering we're practicing social distancing i'm not sure they're practicing it as hard as they should be, but they are practice it and there's a lot of media our entire society is mobilized to decompete tfeat the invisibly and save lives i'm very grateful to you with that, i'm going to ask ivanka to start and then secretary mnuchin, administrator, and larry kudlow say a few words quickly. then we'll get to you if you have any questions or anything, would be great as i said today, we just asked congress to pass legislation to fund an additional $250 billion for paycheck protection program,

so we'll be raising it up to a new level. the way it's going, we'll need that because people are loving it they're really loving it i'll start with ivanka thank you. >> thank you, mr. president, for convening this incredible group of leaders, socially very responsible way via teleconference >> we'll continue to monitor that meeting in the roosevelt room in the white house, the president experiencing some of the typical problems we all experience on conferences with a bit of an echo we'll keep summarizing what comes out of that. but we have different breaking news from d.c. eamon javers has it for us >> well, wilfred, a group of republican senators sending a letter to the treasury department and to the federal reserve. the goal of this letter according to senator kevin cramer, republican of north dakota i spoke to a short time ago, is to make sure there's no anti-oil industry bias in the fed's new lending facilities

that were created under the c.a.r.e.s. act the letter says some outside groups have already advocated certain sectors of the economy be excluded from the loans available under the c.a.r.e.s. act. acquiescing to these demands would harm certain american workers. the letter writers, this group of senators has in mind the oil industry, cramer says. also says they're concerned about blackrock and the firm's role here as an adviser to the federal reserve in terms of its bond buying program. they're looking warily here at blackrock's self-professed sustainability initiative and saying they're worried blackrock might have undue green influence on the process at the fed. blackrock announced it would move from portfolios the public securities both debt and equity of certain companies so they're concerned about that. they say as long as blackrock

doesn't put its thumb on the scale they don't have a problem, but it's interesting to watch as senators raise this question about the oil industry, all the other sectors of the economy that will be concerned about how these lending facilities will impact them and what sort of politics will play a part in all that we're seeing that now with this letter. >> 'mon, thanks so much for that we'll keep an eye on that story as it develops meantime, oil has been front and center in the market today, a big time in the commodity, down 7% energy still the best performing sector within the s&p 500, which is up about 1.25% as we stand with 45 minutes left of trade. we'll switch focus now and talk about gilead that stock saw its biggest intraday can drop in almost two weeks before recovering slightly they're conducting study toss see if one of the drugs is optimal.

where do you stand on the optimism we've seen ahead of various trial as a results that are due? >> i have a certain level of skepticism for the results in these studies. it's the first drug to be tested in a normal fashion for covid-19 drug does have a bit of history. it's not developed to treat this virus. it's targeted to treat the underlying virus itself by inhibiting the replication of the virus. it was originally designed to target the ebola virus,characteh the virus is replicated in totally different cells. i would say i think the results from the ebola study done with

remdesivir are ambiguous at best i think it's a fair argument remdesivir performed the worst of all four arms two drugs did better than that to try to convert this and going into a much different tissue, these lung cells that we'll see a big magnitude of effect. i think it's witchful thinking i hope to god i'm wrong. looking at drug development, it's not something designed to go to one issue and have a certain pathogen miraculously works very well at another tissue and creating a different pathogen when it failed in the primary target t pathogen. >> obviously, you know, what you're saying is very important. obviously, it has some implications not just for gilead's stock but the entire market and everybody i think in the world is pretty hopeful here just to be clear, are you basing your sort of skepticism on any

clinical data or anything that you're actually hearing about the studies going on or are you just sort of speculating i want people to understand you're an equity analyst, not a doctor >> true. yep. >> i want to know where you're getting your information >> yeah. as i said, there's been no formal presentation of data in the covid-19 indication. there's plenty of anecdotes. gilead himself said over 1,500 patients have been dosed and there's a lot of anecdote of a sign of an effect. people take that to be very promising. but the problem is you have a disease where you've got a high spontaneous resolution rate to begin with most patients will recover, you know a fair number, there's very, very highmoral ti and morbidity associated with it but delineating when a patient is responding to a therapeutic versus just responding to the care they're given that's where you need controlled studies and there has been no control data from this drug

other than in the indication it was originally developed for ebola and in that indication it performed, you know, i would say fairly poorly. >>we all hope you're i don't think -- wrong, brian, but thank you for the announcement >> you're welcome. >> this move follows a $10 million donation supporting students and first responders and its $2 million donation to the covid 1 sol dare response fund joining us, verizon ceo hans vestberg why "the new york times" partnership? >> we have been working on being committed to education for a long time. we have been working with schools to connect them and giving them stem medication. we have some 250 schools we're addressing right now

we already have the partnership with "the new york times" to bring their content when it comes to news and education, and we thought now in this partnership already with "the new york times," why don't we when all the students are working from home that we offer them free of charge and the teachers access to this content. so that's how it came about. it was a long-term relationship with "new york times," but in these times you need to do what's right for society and this is absolutely right for society right now. >> we like to highlight these stories every day. you've spoke b a lot about the increased demand with we as americans and entire world have for wireless and broadband and how the networks are being stretched. what does it mean for verizon? are people upgrading their services and adding new services or maximizing what they already

have >> first of all, many people are staying home in these times with the quarantines around the country. but of course there are corporations that are moving a lot of employees home and they need more capacity to do vpn on the other hand, there's more pieces to manage we're not disconnecting residential the consumers or others if they can't pay at this final. this is an unprecedented time and we've never seen it before interesting stats we came out with today is the mobile handoffs, when people move from one mobile center to another in average 35% down that people are moving no if you take new york metro, down over 50% the handovers and the cells and down 60%, that

people are moving so much less around so the social impact on this country right now is enormous how people are staying home and moving much less. >> hans, to what extent do you think it's possible that the current data usage of the last couple of weeks will mark the peak for the united states or the world for perhaps, you know, a decade or longer to come when you consider all the factors at play at the moment and how impressive is it that you and your rivals collectively have managed to essentially make that continue to worker occasionally sara's connection aside, which is now also much improved >> and not verizon, i'll confirm. >> okay. thank you. no, first of all, i have to say our network has held up very well and we are on peak loads all the day compared to what you would have on the highest days of the year. but it moholds up very well what we're seeing now is small

increases. 100% growth on gaming, 50% on the baseline nowadays week to week, it's 2% to 3 persian up. we believe that the majority of people who work from home have moved on as well as many of the entertainment surveillances, sort of being at the peak and that's where the network is performing very well it is the wireless, the broadband, or the internet networks, they're all working fine i have to say the dollars we invested in the network the last four or five years per year that is paying off in today's call on the network. i'm proud of our engineers that still are out there to keep the networks up for the first responders and critical infrastructure >> how much does that open us all up to cyberattack, hans? we've been doing reporting about zoom video, certainly with businesses and individuals and schools, all going online.

are you seeing more cyberactivity? how do you asays the risk around that >> the risk increases as you are moving to places where you have occasion where we've never worked before. we come out with the report and the guidelines, this is what to think about when they bring the business home. but of course you open up a little bit when it comes to the risk of it, but when you work together, you of course are improving together the scale and i think also large corporations are thinking a lot about this. so of course it's an increase because the bad guys see this as an opportunity, but on the other hand, i also see a high degree of understanding and necessity around the question. >> what about, hans, being more exposed to potential diseases and even coronavirus what do you say to some of those conspiracy stories out there that suggest that coronavirus is linked some way to 5g?

>> oh, there's no correlation between 5g and any coronavirus so in these times, you know, a lot of strange information comes out, but no correlation. >> i want to come back to what we kicked off the interview on and that decision for you to offer subscriptions with "the new york times" online for free to certain individuals, specifically school children where do you draw the line i'm not trying to suggest you should be going further, but where do you draw the line, hans, in terms ofwhen you should be doing things for free for good during these tough times? it's amazing to do for school children, but there's all sorts of people out there that may want more information and may be struggling to pay for things in this difficult time. how do you weigh that up as a ceo to generate profits long term for shareholders versus doing the right thing in times like this? >> i always sit down with my team and balance between customers, shareholders, employee, and society. you need to have a healthy balance of that all the time

second, this is a time when you stand up for the most vulnerable in our society long term it's absolutely right to do the right thing, for first responders, small and medium businesses, consumers need more data this is the time you do it there's a crisis there is no playbook for we have never had any crisis like this before big corporations like verizon need to take responsibility, and that's why we balance that every day, do the right thing for society and our shareholders but so far i think we are coming out well we do a lot of residential consumers, for students now, and we're going to continue. this is not over we'll find new ways, support new organizations to do even better thin things >> so, hans, your stock has held up relatively well during this enormous volatility, stable, telecom giant, recurring revenue, strong cash flow,

dividends. i'm trying to sort of figure out what a recession would mean for a company like yours for instance, if we see small business failures in this country, wouldn't that take away a big source of revenue, not to mention the stores being closed? how do you think about it? >> first of all, i think that nobody can estimate at this moment the impact of this pandemic how it will be. i think it will hit all companies for sure then it's going to be different levels of different companies. in our case, it's too early for us to assess how it's going to impact, but it depends on how long this will -- the duration of this crisis and how economical impacting it will be. so far, you're saying it's too early to assess, but technology, broadband, wireless is so important. i believe it's a 21st century infrastructure, and we are sitting on all of that, so that is important asset to sit on

we're well positioned as a company to do the right thing in these times. >> are you feeling good about your decision to not get into movie and tv business unlike your biggest competitor? >> i would say that everyone takes different decisions. i feel good about our strategy and i don't think our strategy will change because of this type of crisis. we feel good about our strategy. we think it is so important. >> hans vestberg, thank you for joining us >> sorry, sara s&p 500 by the way up maf a percent with 33 minutes left we have some breaking news on the navy secretary sue herera has the story the acting navy secretary thomas modaly has resigned he called captain bret crozier stupid or naive on monday.

that offended the crew members he did that over the loud speaker of the "uss roosevelt" and used expletives to describe captain crozier. this all started when captain crozier raised the alarm that crew members on the "uss roosevelt" were coming down with covid-19 that memo was leaked to the press and as a result of that, the acting secretary basically ousted captain crozier he was applauded as he left his ship, captain crozier was, by crew members and basically mr. modal was forced to apologize on monday. he has now resigned under pressure and now james mcpherson, the acting undersecretary of the army, will replace mim at this point. so the acting navy secretary, thomas modly has resigned, after basically excoriating the captain in remarks to the kroo

whi crew which included expletives now he is out of the job james mcpherson to replace him >> sue, thank you very much for that we've got about half an hour left in the session, 31 minutes to be precise. only up 0.4% on the s&p 500. still ahead, we'll speak with the ceo of state street, which has more than $3 trillion under management, $30 trillion under custody. we'll get his take on this wild market volatility in recent weeks ahead. and as we head to break, a check-in on bonds, a move higher for treasury yields today. 10-year yield 0.73%. (upbeat music)

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29 minutes left of trade coronavirus cases appear to be nearing a plateau in new york state. the epicenter of the outbreak in the u.s. but it still did report its worst daily death toll >> more money for small business as the treasury secretary signals more funds will be allocated for program which has seen enormous demand so far. and crude oil plunging 7%. exxon and halliburton planning to cut spending or lay off workers. >> thanks very much for that we're losing steam a little bit. the s&p down now just positive

the nasdaq in negative territory. time for a coronavirus news update with sue herera hello, everyone. here's what's happening at this hour nbc news reporting members of a critical white house group in the fight against the coronavirus now have to work from home because someone associated with that unit has tested positive for covid-19 the fema-based task force is responsible for acquiring and distributing equipment 22 soldiers from ft. bragg's medical brigade are being deployed to new york city to help fight the pandemic. they will help run go temporary field hospitals in the javits convention center. the tennis courts that are normally used for the u.s. open have been converted into a makeshift hospital the queens complex has begun treating nonicu coronavirus patients to help relieve pressure on local hospitals. and senator rand paul is giving back after making a full recovery from covid-19 the republican lawmaker and

physician started volunteering at tristar green view regional hospital in bowling green, kentucky he previously had faced some criticism after refusing to self-quarantine while awaiting his test results still a lot happening. i'll be back in an hour. get more coverage by heading to cnbc.com >> here's where we stand we were up 900 points in the dow. we're barally up positive. mike santoli saying it's big cap tech that started rolling here materials and staples are lower. materials and energy still strong still ahead, the government's small business loan program with sheila bair. ♪ you should be mad they gave this guy a promotion.

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, dow losing some steam, up about 100 points mike wilson is the chief u.s. equity strategist at morgan stanley who says the worst is behind us. good to talk to you. i think we should review your call before this crisis broke out, you were one of the most bearish strategists on the street warning we were end of cycle and didn't like the setup. when you made a call a few weeks ago we saw the bottom, people took note. walk us through your thinking and where you are on the market snoo >> yeah, thanks, sara.

this recession was going to happen nobody predicted the coronavirus. we're much worse than anybody would have predicted even if you were looking for a recession but because it's so severe and came upon us so quickly, we had basically forced liquidation in march and that's what our data would suggest. wefltd li we felt like the prices we roofed in that downdraft were attractive so from a risk/reward stand point we decided to step in that doesn't mean we can't shop around and have volatility still high, but we like the price action of if last couple weeks last week's pullback was almost perfect in its retracement a lot to go looking far full recess now we have a classic little bit of a chase going on. the thing i like about today's action, i know the prices did stay, we are seeing more cyclical leadership here over the last -- even today seeing more cyclical leadership, which i think is healthy what that suggests is as you go into recession, the market wants

to look to the other side. what the market will do is it will start to buy these early cycle stocks when it feels like we're getting closer to the trough i do like the price action i do like kind of the lows are in for this move it's going to stay volatile. but, you know, we think this is an opportunity to be buying dips. >> the lows are in on your view based on what fundamental economic forecast? it's interesting in the last week or so, you and a lot of the other investment banks have seen the economists downgrade forecasts whether that's for gdp orb unemployment, with a number of equity strategists like yourself saying the bottom is in what type of economic forecast for the rest of this year are you pricing in with yet a buy for equities >> yeah, that's sort of the point, right there's a second quarter we now know will be the trough quarter. it's going to be so bad that we can't get another quarter like that typically markets bottom at the trough quarter

once again, that's the second quarter. could we have a retest of some kind, chop around? probably our forecast is for a pretty sharp recovery, not positive growth in the third and even fourth quarter but the rate of change will be getting better and that's what the stocks will start to look forward to i also would point out stocks aren't driven so much by the economy as they are earnings everybody is trying to figure out what 2020 earnings are going to be. stocks are long-duration assets. in my standpoint, stocks care about what 2021 looks like the worse theest mats get for the near term means the better recovery will be in 2021 that's what the stock market is trying to look for at this point. >> yesterday was an up day of 7% and the only real time in history we get moves like that are in bear markets. >> we're t tat the end of a bear

market it doesn't have to end all at once biggest market rallies happen during bear markets but we're also seeing short recovers for the bull market. who's to say what this is? it will remain choppy. market leadership will probably ebb and flow back and forth but we think ultimately we'll progress forward and see leadership change. that's probably the most important thing for investors to think about now is we've been in a defensively oriented market for two years and you need to start adding into your portfolios at a time when it's the scariest that doesn't mean 100% -- >> mike, sorry we're running out of time. can you clarify how you can make this view without knowing when america can get back to work, whether there will be enough testing, whether hospitals will be in good enough shape? questions on the health side that, you know, nobody can really answer right now. >> that's why we have an

opportunity because nobody knows and that's why prices are attractive we're getting paid to take some of that risk on. of course we don't know the answer of course there's a risk making investments at any time, but i would argue that the risk/reward today is probably better than it was trading at 3,400 and there was nothing to look forward to surpass that the stock market is a price on the future and, you know, when prices are -- you have to step in >> mike wilson, thanks for joining us >> thank you >> still to come, we'll bring you uninterrupted coverage of the final minutes of trade when we head inside "the market zone." we have 18 minutes left of trade. 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.

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don't get mad. get e*trade, dawg. 15 minutes left of trading we are now in the "the closing bell" market zone. khmerrerable free coverage mike santoli here as always to break down the critical moments of the trading day today we have jpmorgan private banks and a little bit of a tick

higher, up almost 300 points >> exactly, up about a cent or so on the s&p 500. we'll kick things off with breaking news from that small business relief meeting at the white house. kayla has been monitoring it for us >> reporter: the meeting is still ongoing but statics from ceos about where their loan programs stand with those commitments to st. paul businesses bank of america ceo brian moynihan says the bank has received 250,000 application for those small business loans jpmorgan has received 375,000 applications and gordon smith, a ceo, estimates the value of those loans will be about $40 billion. goldman sachs is doubling its commitment to the loan program to $500 million. goldman is not really a consumer facing bank so it would expected to have a smaller slice of this. as we said, the meeting is still ongoing. we'll bring you more headlines certainly these bank ceos are

talking up the program and suggesting that the demand is overwhelming and trying to just figure out exactly how they can get that money to small businesses treasury secretary for his part says the expansion that he is planning of the program means if they don't get the loans this week that there will be plenty of money available next week wilf and sara? >> i guess the president at the top of the meeting as well also talking about the program and suggesting it's been a very big success so far and being supportive of the banks even though we know not a huge percentage of this only nated figure that we hear has reached small business customers yet that may well change in the days ahead. but still some glossing over of the fundamental facts of how much money has left the door so far so to speak. >> certainly high levels -- high officials of the administration have suggested that this money would be available same day. i've been hearing from small business owner who is say their

applications have been approved by their bank and the sba but they're not expecting the money until at the end of this week at the earliest so there is definitely a lag of this money getting into those accounts, but certainly the fact that these banks are able to process this volume of applications and that they have these tens of billions of dollars available to disperse in these programs they are viewing today as a positive. >> let's hit the broader market right now, take a look at stocks the s&p is up about 1.16%, dow gaining about 300 points second day in a row of gains former federal reserve chair ben bernanke speaking today at the brookings institution weighing in on whether more stimulus is going to be required. >> easier financial conditions are helping the system, making it easier, for example, for corporations to borrow so they can continue to survive, but it's not really time yet to stimulate spending and get people to go out and buy cars and houses

that will have to wait till the health situation is better at that point, monetary policy will go back to normal function. >> not every day we hear from ben bernanke on zoom or skype video. anastasia, how do you think about the impact of stimulus and how much more is needed and what investors are expecting at this point, whether it's fiscal or monetary >> reporter: i think the impact of both the monetary stimulus and the fiscal relief, i should say, has been significant. first of all, in terms of sides, we're talking about quantitative easing programs that are limited. in aggregate they'll add $5 trillion in bond purchases across all the central banks to the global economy so that is an immense size of monetary stimulus. this will play into market conditions over time and then on the flip side, the fact that we have 10% of gdp that has been added in fiscal stimulus, we also can't ignore that so the bottom line for both of those policies is that the policymakers are willing to do whatever it takes.

we used to see that from monetary central bankers but now we've seen that from the fiscal side as well and this is why today we're having discussions about the small business program being topped up. i'm sure they'll get done given the demand that we see, and if bottom line for the markets is governments seem to be willing to do whatever it takes here. >> and to sara's point, the interview as well yesterday which i wasn't here, i thought absolutely outstanding but, mike, to that point, another sort of sobering outlook for the scale of what the economy faces even if the market's able to shrug that off in the intermediate term >> i don't think anybody really doubts that. it's really not about sort of the depth and the shock value of what we're going through at this point. it's how long does it last and when do we kind of bridge over to that side of it and yes, it seems as if the market is looking clearly on the bright side if you just look at

the last ten days or so, but we're also trading at levels of more than two years ago in the s&p 500. so it's not as if the market has been whistling past this possibility. so i don't know that we've kind of gotten to a level of this rebound rally in the market where it's absolutely premised on a phase four support package fiscally, but i think we could theoretically get to that level with it says now we've priced in all the known news and maybe things getting better on the health front the need for that is a function of the duration which is at this point very foggy >> should mention with nine minutes to the session, half a percent higher on the s&p, sara saying we were up about 350 on the dow, only 1 4 now, so very vol tif as we approach the close, now back up to close to a percent on the dow, moving around a lot crude plunging, exxon cut 2020 capital spending by 30% and reducing cash by 15%

>> a lot of those cuts are coming out of where we have a short-cycle investment, plays there or more easily adjusted in the short term and we're doing that while preserving the longer-term value. certainly been impacted in the short term by the covid-19 but a recovery is on its way it's just difficult to tell when it's going to arrive when that comes back we'll rebuild that capacity, but we have plenty of capacity and frankly that has always yund pinned our strategy, make sure that in tough times we have that available to us. >> mike, interesting to see of course while oil has sunk late this afternoon, energy still the best performing sector today, but to the point about exxon, although a big cut in op ex and cap ex, it's kind of encouraging for those big companies that have scope to cut that and still very strong cash flow and profitability in the short term.

>> yeah. obviously exxon with its balance sheet does have those levers to pull obviously an assertion that the dividend is very much kind of a high priority, continues to be with the company it is neck and neck for the biggest single dividend payer in terms of gross dollars, and microsoft and teeth teeth are in that zone, so it's significant market wide they want to defend that payout, but it is to me almost a lagging acknowledgment of how conditions have changed in the industry, these cap excuts >> emergency shares overall are higher despite crude's spill as it closed earlier in the session. zoom is facing more challenges as it sees enormous growth during this pandemic deirdre bosa has the details >> like other popular platforms before it, zoom moved a little too fast while privacy and security concerns fell to the

wayside. schools and businesses have banned their users from stopping using the service. encryption weaknesses have been exposed and just today taiwan's cabinet told agencies to stop using it this afternoon, though, a reuters report citing a government memo saying that zoom is responding to their concerns. rivals, though, are not going to wait already we are seeing microsoft's skype as well as google's duo video conferencing surveillances mimic and encroach on some of zoom's success. take a look at the shares of zoom of course still one of the biggest winners this year, up nearly 70% year to date, but last week, down 20%, today, another 7.5% >> what was the reason zoom had such ferocious growth over the prior couple years relative to the other names you threw out there? and does that difference still apply now? >> that's great question, wilf let me ask you, have you ever used google hangouts, skype, some of these other services put simply, zoom just a lot

easier to use. there aren't a lot of those barriers you see with other services there's no password. that wasn't a default until recently when you get into a zoom room. that has been part of the problem and now it's going back on some of those measures like asking for a password, putting you in a waiting room before you get in, and that's giving a chance for its rivals to copy some of the things like that now perhaps we'll see if it leaves an opening for them to catch up >> thanks so much for that s&p up 0.3% with five minutes left boeing and airbus halting production of commercial aircraft in the u.s. >> it brings up the question what happens when they restart production and what are the product schedules going to look like say six months or a year down the road you look at shares of boeing and airbus, not a whole lot of

movement relative to the news today. they've both off about 60% since the middle of february and there are no final assembly plans for the commercial airplane makers operating in the u.s. airbus, they have essentially since 2009 almost doubled their a-320 production that's one of the planes they build in mobile, alabama what will happen say six months or a year down the road? and one other note regarding the airline industry, united out with a reduced schedule for its two hubs in san francisco and los angeles, cutting them back by 35% we'll see this with all the airlines and hubs as the d.o.t. has said it's okay to go to a bare minimum schedule. >> the french and german government stepping up to help airbus in a more clear way than the u.s. is for boeing >> we don't know exactly how the u.s. is going to be helping boeing we're waiting the find out the terms and whether boeing accepts those terms or money from the federal government that's up to the treasury department at this point

and in terms of france and germany, we haven't seen a definitive final answer in terms of what they may do for airbus, but make no mistake, they will step up to help airbus >> phil lebeau, thank you. mike, what are you seeing right now? >> they've softened up since the morning. if you look at the new york stock exchange up-and-down volume, this was on track in the morning for another overwhelming 90% positive volume day. obviously well off this right now. it's more like 3 to 1. so that's not going to give you kind of a full confirmation that yesterday's powerful rally was up and away type of move new highs and new lows on the nyse nothing dramatic which tells you most about how we are completely evenly matched between the highs and the lows lately. but the fact that we're making 44 new lows is pretty much a fairly low number in aggregate when you're talking about a

market that's still down some 20%. no real signal in the volatility index, it's been jumpy it's up again today. it's actually been reluctant to go down a lot on these dates because even if the market is up it's taking big bites and it's still hard for volatility to drain away quickly >> anastasia, how are you reading the recent action as to what it could tell us about where the market is going from here >> i think we definitely had a very stealth rally off the bottom, almost 22%, so i wouldn't be surprised to see a bit of a pause here. for me when i look at the markets, it is all about the forward trajectory and the forward expectations and one of the most encouraging piece of news we've had in the last couple days is the fact that we seem to be approaching the very late accumulation stage in terms of new infections, of covid in the united states. so that's incrementally better news and that means for the month of april the expectations should be to see those numbers start to trend down. so the market fundamentally

should be supported based off of that but then there's other several factors that i really liked when i looked at the market you know, many say that the market is positioned for a v-shaped recovery. i'm not sure that's quite the case because when you look at the consensus gdp numbers, they're calling for significant downside in the first half of the year, and yes they're calling for the upside in the second half of the year, but not to the same degree of magnitude. the consensus does not actually expect us to recoup all of the gd loss that we're seeing. so that to me says it's likely a realistic assumption then you look at the earnings numbers and revision have come down significantly, so i like the much cleaner positioning in the market >> we have 30 seconds left for session. the s&p is bang-on flat as we approach the close, down just higher, nasdaq just low, well, well off the highs of the session, which came earlier this

morning. the dow as a high was up 937 it's currently right on the flat line as mike said, some of the big techs have sold off into the close, microsoft, apple there in the red, energy holding on to being the second best performing sector despite oil selling off itself as we approach the close. you can hear the bell going as i speak. we are in the red for all four of the major indices at the close, albeit on slightly and albeit still significantly higher over the last two days following yesterday's ferocious rally. sara >> been a while since you said bang-on flat, wilf i'm sara eisen with wilfred frost and mike santoli and that's the story check out how the major averages closed the day lower but just barely, fractional moves, which has been an oddity lately in trading. the dow closing lower by 34 points, losing a bit of sneak peek the final seconds really of

trade. the s&p 500 down about 0.2%. you did have grouping hold their gains like materials which ended the day up 2.4%, consumer discretionary and financials all higher utilities, consumer staup ples r lower, as were health care and technology the russell 2000 index of small cap, which has been doing better lately, thanks in part to the rebound we've seen in energy and financial s ending the day almos bang-on flat several big bank ceos said they will not cut their company's dividends in the economic outbreak coming up, we'll talk to the ceo of state street and whether he plans to keep his dividend intact as well >> one of the eight globally systematically important banks, part of the financial services forum, the route by which they're cutting the buyback. joining us to talk about the

market, jpmorgan's anastasia an marroso. jeff rosenberg from blackrock is on the phone with us mike santoli, to come to you first, approaching the close, quite a big sell-off relative to the highs of the session but off the back of a big bounce yesterday. which kind of stocks kind of gave up the steam and what does that tell us about people's sort of thinking about this bounce from the lows? >> huge cap growth stocks and the defensive stocks those that had held up better, that so-called quality trade, really did give it up. walmart down a few percent on a day there's no grnews and nothig about the consumer it ended up being a noisy rotation day you had very cyclical, very beat up, high beta stocks so that was the sort of movements within the market, and i do think that it also -- overall the s&p at the morning rally highs got above these levels that seemed like they

were in the very, very short term overextended. 2,700 of the s&p's well trafficked over the last three years, people saying that is the obvious place to take profits if you caught this rebound rally. maybe that's some of what we saw in the afternoon >> jeff rosenberg, you're the bond market guru we saw yields with a nice tick-up today, the dollar sold off pretty well. what kind of signal of stress are you getting out of is fixed income market versus where you were a few weeks ago when they were flashing red? >> it's not signals of stress, sara, today. it's signals of a little bit of easing you know, what we came off of was tremendous dislocations from that liquidity squeeze we saw go through the markets from the real economy, through the banks, throughout the financial system. you're seeing now the tail end of the efficacy of the feld's liquidity programs bringing back some liquidity and normal ti, then the bond market is now

starting to reflect some fundamentals you're seeing the story that you guys are describing on the equity side, a lot of the steepening of the curve today, modest movers, modest tightening of spreads is really kind of what you'd expect for those equity market moves. so we're starting to get back to being able to interpret some of the moves in the bond market for a reflection of the fundamentals and not this, you know, historic liquidity squeeze that we saw a couple weeks ago >> anastasia, on down days for some of these big tech stocks, which have very strong balance sheets like microsoft and apple, is it a buying opportunity for them >> it is absolutely a buying opportunity, especially for long-term investors. when we think about the environment we're in today, whether it's the covid world today or the post covid world hopefully we'll be living in soon, it is the companies like artificial intelligence software companies and the semiconductor companies and the 5g companies

that are going to be enabling this transition to the post covid world. so one of the things we're looking at at the moment is how artificial intelligence, for example, is at the forefront of actually helping us manage and navigate this pandemic so our conviction in some of those megatrends and tech stories only strengthens here. the combination of artificial intelligence companiesand the biotech companies at the forefront is what i would be looking to buy on pullbacks. >> jeff, where do you think the market -- when i say the market, it would be bonds, stocks -- is right now on expectations for how severe this recession is going to get and how long it lasts? >> it's a function of trying to understand what the path of the reopening looks like i think most of the consensus views on the path of the reopening are the optimistic views, the base case views you

flatten the curve, you can reopen, there's a small second wave but it's manageable because the health care system, the treatments are more advanced you can use localized distancing and quarantines to manage that and that what you don't end up with is a much more debilitating second wave. that gets the economy slowly reopening, and the kind of recovery that you get in that environment mathematically looks like a bounceback, but the real question in the bounceback is how much output was permanently lost, that there's a large degree of both permanent loss and then permanent change in behavior that's very hard to ascertain. the other thing i would make a point on is with the amount of liquidity injections that we're seeing in financial markets, across financial markets, that the recovery that you see in financial markets or the shape

of that may be very different and may not be actually a reflection of the anticipated recovery in the real economy because of the effect of the liquidity injection and that you get a little bit of a different message between the financial market recovery and what we eventually get from the real economy. >> mike, we always discuss as well the amount with which the s&p 500, for example, was overvalued on simple p/e terms compared to its own past but also european equities when we bounce 20%, 25% from the lows you think of what's warranted and a large pushback could have happened without the coronavirus outbreak is it hard to point to those factors now when p/e multiples and other valuation multiples are still slightly out of the window >> they are. i don't think right now the immediate term valuation is either a restraint on the upside or a reason why the market just rebound from here or go down mump from here we're going to be kind of giving corporate america a bit of a

pass on the next couple of quarters it's going to reset everybody's kind of expectations you give the s&p 500 a kitchen sink corn so to speak and we figure it out. it's much more about trying to look over this valley and not really knowing how broad that valley is that we have to go across that's the trick right now that's why the market i think in the very, very short term is going to overshoot in the direction of being very optimistic on some days and bag little skeptical on others until we have something to really grab hold of on the fundamental side. >> not to mention, mike, emotions are running high because people are scared. >> sure. >> we're hanging on these press conferences from our governors and our president and dr. fauci because we want to know, you know, how safe we're going to be >> right >> adds a whole new element. >> not just that people are scared but they don't have the grounds to have high conviction in the short term about how this is going to play

what that means is you don't have a lot of conviction on the price you're willing to pay or what you're willing to sell something at based on today's news or actions or any estimates. i do think that's definitely part of the factor just a crazy volatile close we had, too, because it seemed like there was a little bit of who knows what kind of strategies getting swept over the market by 4:00 >> it did really feel like a push/pull towards the bulls and bears twands the end let's get to bob pisani for more on that and a look at some of the big movers we saw big gainers but not so much in other names like a boeing >> we gave up a 90-point move in the s&p 500. we're running out of steam and there's reason for that. we're optimistic about the fed coming to our res crcue.

the market started falling apart the week of february 20th with the coronavirus headlines. walmart is actually trading up 4% since the market started falling apart around february 20th it's actually up look at other names like verizon, it's only down 2% since it started falling apart on february 20th. merck is only down 3% since it started falling apart. look at these moves. they're u-shaped moves here. put up microsoft it's still down, down about 8% since february 20th. but that's not that great. look at the move here. we've seen 3m. that's also u-shaped here and also down about 8% from february 20th i'm not saying these are not nothing, but these are quite big moves given the magnitude of what we're dealing with in the economy. why is it happening? we're not just looking over the valley people have come to believe the fed has the ultimate bazooka we heard that this morning from some officials that were out there. mnuchin was talking about this

and pooerm were talking about it larry kudlow was talking about it this morning. when the market comes to believe that, no wonder you get these big moves. but there is a long-term process and a lot of people understand that right now let's not get too far ahead of ourselves. that's basically what the market has been saying today. guys, back to you. >> all right, bob. thank you. anastasia, to you on technology, which we haven't talked a lot about recently but did seem to be a swing factor today between the gains and the losses how do you think about names like a microsoft or an apple which are somewhat viewed as a relative safe haven? if you look at information technology, it's out perform, only down 9% so far for the year what do you do with these names? >> that's right. they have acted as a safe haven down at least all the other sectors but there's a good reason for that. that reason is that in today's world, especially tomorrow's

world, there's going to be more need for the crowd and the shift for workloads to go to the cloud and so companies like google and microsoft and the amazon web services are all going to be benefitting from that. so that's what justifies the higher multiples there are other companies like the semiconductor companies that arguably have suffered more and back in early february we were worried about how much growth optimism we were pricing in. today they're pricing in a lot of growth negativity but if you think about just what we're doing right now, using the video chat for all of these activities, there's issues abundantly clear under today's 4g networks and wi-fi networks that's why the move to 5g is going to become even that much more important so we look at the number of semiconductor names in this environment that have pulled back to be adding incrementally to them, because chances are six months from now the push towards

5g is going to be that much greater. >> we will leave it there, everyone thanks for joining us, anastasia and jeff we'll speak to the ceo of state street and get his take on the maetndheasvewis.rk a t msi sng i, 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 .

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their 52-week lows hit a couple weeks ago and up healthily for the week following yesterday's rally. joining us now state street chairman and ceo ronald o'hanley a very good afternoon to you thanks for joining us. >> how are you, wilfred? >> not too bad, thanks all the better for having you join us. ron, state street, $3 trillion or so as ets under management and in the custody business over $30 trillion in custody. you've had a front-row seat to all the volatility in recent weeks. how bad did the functioning get a couple weeks ago and how much has it improved? >> well, what was striking about this market was the speed with which everything moved many of us went through '08 and thought that was rapid, but everything moved quite quickly here markets locked up fairly quickly including markets that one assumes always works

but what was also striking was the speed with which the market participants and the regulators worked and i can't praise the regulators enough, particularly the federal reserve, the ecb, in terms of how swiftly they worked to help to unlock markets. >> ron, i know a lot of your clients are obviously in mutual funds and all sorts of retirement accounts. can you give us a sense of the sentiment out there that you're getting from retail nvestors, how fearful they are, whether they've been buying or selling and where that has gone as this crisis has evolved >> well, depending on how they're invested if an ventilator in a 401(k) investment, those tend to be in

target date funds which are basically self-correcting, so most participants aren't doing anything with those, which is good that means they're buying equities when they're low and selling bonds when they're high. they're doing the right things in terms of how it's a little bit different. this has been a little bit frightening for them and there was afair amount of selling, although not anywhere near as much selling as we saw in 2008, probably because of the speed with which this has moved. if you think about how markets tend to move, particularly any associated with a recession, they tend to take a whole lot longer to recover than gdp does. this is uncharted territory. first of all, it's not a typical recession. this is first and foremost a public health crisis that in turn has caused an economic crisis, which in turn has caused challenges to the financial markets. as a result of that, there's no

playbook for people and i think for the most part retale investors have stay v stayed put. >> ron, you're one of the eight gsips banks and one of eight members of the financial services forum, and you along with the other seven members of the nation's biggest banks decided collectively to suspend your buybacks a few weeks ago. i'm interested to hear from you exactly how that unfolded. i mean, did the fed push you to do it? did the interview happen to come together and make the decision how did that all come together >> we all saw what was starting to happen in the markets this was in early march. while we couldn't predict what was going to happen, we knew that oftentimes crises gets worse because of lack of confidence so what we wanted to be sure was that there was no question that there would be plenty of capital to lend into the system as we

come through this and into a recovery and so, the feeling of all of us was this would be a very important symbol in some ways it's unnecessary because these banks are extraordinary well capitalized if there's one thing that's worked in the 12 years since the crisis, it's been the repair of the banking system and the recapitalization and the strengthening of the banking system but it was a very important symbolic action we thought would be even more effective if we took it collectively >> despite the strength and perhaps the lack of need to do it, there's still been a lot of debate about whether dividends should also be suspended on our air in the last couple weeks we've had some high profile bank ceos dmit to their dividend and former fed chair yellen saying she'd like the banks to suspend the dividend. let's recap some of those dividends. >> from our perspective, we plan to continue to pay pit >> the recipients are many times

small individuals who own very large bank stocks all over the country. to lose that income at this time i happen to think would be a very poor thing do >> we're in a position with our compliants but it's my expectation we will continue to pay our dividend >> i would be in favor of asking the banks to suspend dividends and stock buybacks >> where are you on that debate on dividends themselves, ron should the banks and yourselves go one step further to be extra careful to preserve capital? >> listen, the reason that there is a suspension in dividends is one, you thought there was some kind of solvency issue with the bank, two, if you thought like it was impairing the ability to lend into the market neither of those are true. the average dividends at most banks is around 30% of capital distribution, so it's a relatively small part of what goes back to shareholders relative to buybacks

also it's paid out four times a year right now there's absolutely no need there's plenty of capital flowing into the markets these banks have plenty more to lend so i think this is something that we should watch but right now we see no need to stop dividends >> ron, want to pivot back to the core bids, the asset management business. do you think the volatility we've seen in the last couple weeks will give another push back to active management? will various clients look at what's happened and think i'm done now with that automated stuff with various etfs and i want to go back to an actively managed portfolio? >> yeah. it could and particularly now as the economy recovers, and there will be a recovery here, but there will be some that will come out quicker than others. not all hospitality will recover at the same time not all airlines are likely to recover at the same time, so it probably is a good time for

active management. but i also think what we need to look at too is we need to look at why liquidity wasn't going to markets. in many cases particularly some of the fixed income markets, there really isn't enough of liquidity in those markets, so that's something else that we need to look at and figure out is there a change we want to make going forward going back to my point earlier about the fed, i think the feld anticipated this i think they recognized that one of the changes that had occurred between last time and this time was that through the new dodd/frank rules, the strengthening of capital, there was just less capital available for market making, is if you looked at the programs that the made came up with, they were very much designed to make up for the fact there wasn't liquidity in those markets so again, i can't emphasize enough how well they've done oftentimes you find you're fighting the last war.

in this case, they were definitely fighting this war and doing it well. >> all right, ronald good to see you. thank you. ronald o'hanley from state street >> thanks very much. >> we do have some breaking news on google. deirdre bosa has the story deirdre? >> google's g-suite, bundle of productivity software including calendar docs, drive, and other tools has exceeded 6 million paying customers up from 5 million paying customers as of february of last year. cnbc's giordano va breaking this news online. in addition to the overall customers, the google meet video calling service included in g-suite is getting 25 times more use than it did in january, just a few months ago, this according to g-suite's vp and general manager. guy, get this. google says it will provide this premium video service free of

charge through the end of september. we were just talking about this. zoom's rival encroaching on its success, focusing getting its privacy and security tools up to speed. this is another great example of it back to you. >> deirdre, thanks so much for that google one of the big tech stocks that slipped into the close, albeit ending flat. other breaking news on jack dorsey kate has it for us >> so, jack dorsey, ceo of square and twitter, just tweeting that he will be donating $1 billion, that's a third of his wealth, to covid-19 relief so to fight the virus here, he just announced that on twitter dorsey tweeting he's moving a billion of his square equity, roughly 28% of wealth, t to #startsmallllc to fund global covid-19 relief. after that, after he says we disarm the virus, he's dedicating that money to universal basic income and girls

health and education just tweeting that now there's also a link to track that and how he's actually doing that square has been lobbying to be part of this relief package. they haven't gotten access to those sba loans but dorsey paying attention here. we'll be watching that >> thanks very much for that worth pausing and applauding so many factors of this from jack dorsey whether it's the absolute size of the donation, the percentage size at 30% of his wealth, if that's accurate, but also coming at relatively young age for a billionaire to give away such a big chunk of their wealth, not criticizing any of the older billionaires who are willing to give away huge percentage, but just particularly commendable to see. >> yeah. i mean, a billion dollars, huge, 28% of his net wealth. trying to read more about this girls health and education it looks like to fund girls education, which is huge, and also, you know, not just an

economic kind of way to move the world forward but an important humanitarian one as well still ahead on the show, we're going to ask former fdic chair sheila bair why she thinks wells fargo should be allowed to extend the balance sheet beyond limits in order to make more coronavirus small business relief loans listen or watch us live on the go (soft music)

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stocks closing lower on the session, giving up a more than 900-point rally for the dow. back to mike santoli for a look at this volatile market and some historical perspective >> extraordinary i've been trying to make the case that the speed and trajectory of this decline is definitely out of the historical norm this is a chart from suntrust comparing bear markets the charts stop when the ultimate low of the bear market is reached obviously, we don't know what the ultimate low of this one is. look how quickly we got down to that 35% decline that's the purple is 2020, and it most closely compares if you want to look at history, this is 1987, then you had 1961, which is another very interesting kind

of fast crash, brief recession, then kind of back off to the races. it doesn't really compare very closely by this measure to the 2007 experience, which would be more like right there, kind of unfolded over a year and a half, and in 2000 it took a really long time for it to work its way through, something like three years. it doesn't mean that this races back to all time highs but it means the sharper the drop the shorter the duration of the ultimate path to the long-term lows for that particular bear market if we're even going to be calling this a bear market as opposed to a crash or something different. 1987, we don't really talk about it that much as a bear market because it was so quick, but we'll have to see how this one develops, guys >> interesting chart, mike just since we've been looking at these types of things and ventilator sentiment, i was curious what you thought of the chief equity strategist at goldman earlier saying we are not near the washout levels of

sentiment we've seen to your point in previous crashes or bear markets like the financial crisis >> i think he's probably correct in terms of the types of clients he'll be speaking to, a lot of professional fund managers it hasn't been long enough, and we haven't had kind of the economic wear and tear to change people's longer term views and positioning, but i think on a tactical, short-term basis, we have a real flush at those lows a couple weeks ago so that could insulate us from any further downside and actually could burn off in the form of a continued rally here then you can kind of reases and decide if the fundamentals merit this other sort of sentiment shock that maybe he's waiting for. >> one other quick point the pace of decline of that purple line as you pointed to pretty unprecedented i guess the pace of the decline of the economy, various metrics we look at, is also unprecedented but it goes back to that point if we're not expecting the economy to recover for two or three quarters, then i guess why people are expecting

the equity market can do that much quicker >> well, i think the idea being the equity market will at least bottom before the economy bottoms. i think all-time highs that we saw in february, they're kind of not relevant to the story right now. right now you're looking up at them and the idea that for a longer-term you might have gotten attractive prices here and you can build further equity exposure is separate from saying we're going back to the all-time highs because i don't think that's the deal. typically if the market is so to speak sniffing out an oncoming recession, it's going to kind of roll and churn like that that's the normal as opposed to from an all-time high a sudden shock off a cliff of 30%. >> mike, great stuff thanks for that. we have breaking news on pinterest. julia boorstin has this. hi, julia. >> hi, wilf. that's right pinterest providing preliminary first-quarter results saying its revenue did see a sharp deceleration starting in

mid-march. revenue is in line with expectations before that, now announcing it will be in the range of $269 million to $272 million. the company saying that it's ad exposure to the most affected segments such as travel and restaurants has not been significant. pinterest announcing that its users grew faster than expected saying they expect global monthly users in the range of 365 million to 367 million now, that is above the projection of 355 million users. people must be using pinterest more as they are staying home. we will get final numbers when the company reports fay 5st. the company announcing it is withdrawing its full-year guidance due to covid and its c.o.o. is leaving the company. back to you. >> julia, thanks for that. up about 9.5% in after hours trade. up next, we'll ask former fdic chair sheila bair if she thinks large banks should be barred from paying vididends if the coronavirus outbreak continues

to worsen.

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the company pulled full-year guidance because of the coronavirus. levi straus up after a bait on revenues and earnings. >> the u.s. government's coronavirus relief package already hitting some roadblocks. beyond the well-documented delays, now wells fargo says it has stopped taking applications for small business loans saying it cannot handle demand due to restrictions imposed on the bank after the fake account scandal sheila bair tweeted that regulators should step in and wells fargo should be given latitude to make loans under the c.a.r.e.s. act nice to have you call in, a show

la >> thank you >> why do you think wells fargo should be let off the hook by the fed? >> i think for this purpose they should be. there's a broader public purpose here we need to get this money to small businesses quickly we need to leverage as many lenders as possible. wells fargo does a sizable amount of small business loaning. they have a lot of previous customers that would benefit immediately. they're on the ground throughout the country. so, yeah, i think for this purpose, it's -- the continued to desire to punish wells fargo for its consumer issues, which were significant, i don't want to suggest otherwise, but this is kind of coming up despite your face. they could be part of the solution. >> sheila, in the announcement wells fargo put out to say they only had capacity to can $10 billion for the ppe program, in march alone they extedded $77

million of new and increased loan commitments to clients in response to this crisis, just not through the ppe program. >> right >> i guess it highlights underneath that asset cap, they have flexibility for which types of loans to prioritize so i just wonder whether you think they should be favoring the pdp program more even if this asset cap doesn't get lifted or whether they're using the current environment a little bit to put pressure on the fed >> well, that may be i mean, there's a lot of people trying to facilitate other agenda items perhaps out of this crisis i don't know if that's what's going on here or not they asked them to prioritize and say okay, you have credit line over here, cut back on that, because we want more in small business lending i think that's hard to tell a bank as you know, i'm not a big advocate for big banks but i do think this is -- you know, they have a lot of capacity to lend especially in the small business space

we need in a prudent way to be letting banks expand balance sheets we should be encouraging them at this point in time to expand their balance sheets to extend credit to business, households, employers large and small. i think that is the ultimate goal right now and what we should be focused on again, i don't see why accept to just continue, you know, this punishment they've been punished a lot and continue to be in this instance, it benefits making them make more small business loans outweighs that factor >> i guess they have seen a lot of the other punishments put behind them, not to mention a new management team and other options they've taken. >> right true >> nonetheless, my colleague steve liesman and i suggest that wells fargo did start this conversation about having a temporary lift to the asset cap a couple of weeks ago, and clearly that hadn't happened yet. >> right >> knowing regulators as you do,

do you think that their incentive to lift this cap temporarily will have been enhanced or reduced based on being kind of called out publicly a little bit by wells fargo? >> well, i think, you know, as a regulator, i never liked entities regulated to go public. apparently they were trying to have a private conversation. i have not talked with them. i don't know what's going on in their minds. so that's always a dangerous strategy to go public with pressure for a regulatory objective if they did that, shame on them. putting that aside, i still think in this ins stance giving the extreme credit need throughout the economy especially in the small business sector, it would be justifiable for the fed for this cap, at least for expanding capacity to the small business loans and the fed's been offering other regulatory relief, some i

don't agree with, especially on capital. it's not like this is the only area they've been easing up a bit. i think because of the benefit you would get for small business, i think it's justified here >> yeah. i mean, i'm sort of wonder, sheila, if maybe wells fargo is an example of this or not, but with the hasty bailouts, which have been praised by all sorts of corporate leaders and strategists and investors and policy leader, how much more there's going to be. >> right >> how many examples, whether it's the small business lending facility or the federal reserve mainstream lending falcility, ho much it will encourage risky behavior and how many checks there will be to make sure these funds are handled responsibly by big business, no buybacks, no laying off workers, that sort of thing. >> right yeah no, it's a real issue. fortunately we're fighting a virus. we're not rewarding people whose misbehavior caused the problem to begin with, so at least

that's not a factor this time around but especially for -- i'm much more sympathetic to the smaller businesses some of the large businesses were prudently and well managed. we've all pointed out, you know, examples, airlines, boeing, what have you, were poorly managed. more capital than they should, took risks they shouldn't have and they're getting help because of the broader economic need i think that's unfortunate but, again, there are not a lot of good options here i applaud the fact that congress wisely said no buybacks, no dividends, no outside executive pay if you're getting help under the c.a.r.e.s. act for large businesses i think that's absolutely right. at least by telling them what you can't spend it on, you'll force them into where they should be putting their funds, which is operations and payroll in particular. so that will be an important safe guard, guard rail on this they've also created an oversight board that will be

looking at this. they will have name and shame capacity if there's m misappropriation of funds, which hopefully god forbid that does not happen it's the time for corporate america to step up and be responsible and say, yes, our shareholders have been getting trillions of payouts in the last few years, record number, it's time for everybody to give a little, we'll give up our pay, suspend dividends and buybacks, prioritize our workers and the economy and stay operational so we can get back online quickly once this passes i hope that's what's going on in the minds of corporate leadership, because i think now may be an opportunity, too, to redeem themselves a bit. if there are wide scale abuses there will be a huge public outcry they want to go to more government control of the market, more socialism, that's a way to get all that started. >> well, certainly, it has drawn less controversy than the 2008-2009 bailout.

sheila bair, thank you so much >> sure. >> retailer tractor supply hiring thousands of workers as it ramps up curb side pickup and delivery coming up, the company's new ceo on the hiring spree and how coronavirus is impacting sales shouldn't you pay less when you use less data? now you can.

because xfinity mobile gives you more flexible data. you can choose to share data between lines, mix with unlimited, or switch it up at any time. all on the most reliable wireless network. which means you can save money without compromising on coverage. get more flexible data, the most reliable network, and more savings. plus, get $200 off when you buy an eligible phone. that's simple, easy, awesome. go to xfinitymobile.com today. welcome back time to get a coronavirus update with sue herera. sue? >> thank you very much, sara good afternoon, everyone acting navy secretary thomas modly offered his resignation and it has been accepted according to doiefense secretary es per modly created a firestorm after he fired the captain of an aircraft carrier who sent a

letter to the media pleading for help with coronavirus on board he said their captain was either stupid or naive or knew the letter would go public a u.s. appeals court is allowing texas to restrict abortions during the coronavirus pandemic governor abbott declared abortion a nonessential procedure that was taking protective equipment away from frontline health care workers. critics say it is a simple ban on abortion. france becomes the fourth country to report more than 10,000 coronavirus deaths. the toll is up 1,400 since yesterday and officials say they still have only partial data on deaths in nursing homes. little caesar's is making a big donation to first responders starting today it is giving out a million pizzas to hospitals, police, and fire departments the deliveries will go on for several weeks. as always, get more on the coronavirus coverage here at cnbc by going to cnbc.com. wilf, back to you. >> thanks so much for that ahmed the pandemic, one

company that says it's seeing a benefit is tractor supply with seeds, hunting supplies and baby chicks let's bring in courtney reagan with tractor supply ceo hal lawton over to you. >> thank you very much, wilf hal, thanks for being with us. this is your first interview as ceo. what a time to take over a retailer of any kind you've joined there since january and put out first-quarter results today, comps at 4.3% and march alone up 12%. our audience may not know, but you are deemed an essential retailer so your 1,900 stores are open for business. what's going on in your stores rig right now? what are customers buying in this pan dem sncc. >> hi, courtney. thang you all for having me on if show. as you said, our customers really rely on us for essential needs, and this is really an unprecedented crisis that we're

in, and our customers are really coming to us for things like feed for their animals we're the largest bagged good seller of animal feed in the country. we're one of the largest pet food retailers in the country. and we really are a one-stop shop for the essential needs of really all of rural america as it relates to their land and their farms. so as we announced in our press release this morning, in the month of march, we saw significant stock-up sales from our customers to the tune of 12%-plus comps particularly those areas of feed, food, things like propane fuel and others. we also said that we were seeing that trend continue in q2. however, there has been some shifts to a little bit more of the back to basics gardening, agriculture, poultry kind of land maintenance grilling-type activities >> as you still have stores open, you obviously have

employees that are serving customers, customers that are coming in, and you've announced you're looking tohire more follows. putting all of that together, how are you keeping everyone safe? priority is our team members and our customers' safety and health. we put in place a skricrisis ten late february and that team has been working 24/7 since then solely focused on our team member health and safety we've implemented over 100+ actions in the last four weeks solelyfocused on that. a few of the key things that i would call out early on, we extended sick pay by two weeks we also implemented an appreciation bonus for all of our team members across the country that are on the front lines in our distribution centers and stores, and then this week we announced a whole

host of other implementations including hiring 5,000 new full-time and part-time team members. these additional jobs are primarily focused on two things and this is for the labor in the stores to handle the labor spikes that we're seeing as well as the reduced efficiency operating in this environment. secondly, we also added a greeter to the front of our stores which is a new role responsin for the sanitization of all carts and monitoring social distancing throughout the store and keeping count of customers in our store and sanitizing other areas that are highly frequented and touched such as our registers in our stores >> hal, thank you so much. we could talk to you for much longer, but unfortunately, we have a lot of news to cover. keep us updated for the retailer that you took over in january. hal lawton for tractor upsupply

wilf and sarah back to you. >> up next, your good news rundown. comedian kevin hart teaming up with beyond meat in the wake of the crisis and we'll have the details behind that push when cnbc comes right back. s serving the military community, we've seen you go through tough times and every time, you've shown us, you're much tougher your heart, courage and commitment has always inspired us and now it's no different so, we're here with financial strength, stability and experience you can depend on and the online tools you need because you have always set the highest standard and reaching that standard is what we're made for ♪

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in the wake of this pandemic our lives have been uprooted in unprecedented ways we are forced to be physically distant, but in spite of that many are working harder to be more socially active through acts of kindness here are some of those examples and stories for you. when a university in tokyo didn't get to hold their traditional graduation ceremony, students came up with an ingenious idea they were on tablets to walk their diplomas instead. >> it's a little creepy, but i still think ingenious. >> kevin hart partnered with beyond meat as part of their feed a million pledge and john krasinski trying to upstage "closing bell" with his own good news show. he surprised a young hamilton fan by getting the original cast

to perform a song for her on to perform a song for her on ♪ ♪ ♪ in new york, you can be a new man ♪ ♪ new york ♪ alexander hamilton ♪ ♪ we are waiting in the wings for you ♪ ♪ >> that is so cool i love that. i can watch that all day up next, new survey data shows the coronavirus has impacted how people view their financial well-being compared to their physical health. we'll have the full details right after the break. but right now, the world needs all the good that we can do. to everyone working to keep america strong, thank you. for farmers here, this is our life's work. but when a recall happens, perfectly good food goes to waste.

now, we've got away around that. looks good. we're on target. blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. it's used by some of the biggest retailers everywhere. a nice wedge. so more food ends up on your table, is that daddy's lettuce? yeah. and less food goes to waste. ♪ ♪ - [female vo] restaurants and are facing a crisis.ste. and they're counting on your takeout and delivery orders to make it through. grubhub. together we can help save the restaurants we love.

wach the coronavirus impacting every aspect of our lives including our priorities a new cnbc survey view how people are viewing their health versus their wealth. >> people are worried about job security and their personal finances and worried about their health more. a new cnbc survey of 2500 voters in six swing states finds 82% of respondents are more focused on their family's health than their family's finances and 79% of voters are more focused on the nation's health versus the national economy despite economic uncertainty they don't want to sacrifice their wellness to restore business as usual. 91% of respondents support social distancing and the highest personal approval rating goes to dr. anthony fauci with 90% approval of course, that is the white house infectious disease doctor who has said the virus will set the timetable for the economic

reopening. the nearly two-thirds of voters believe the government isn't being aggressive enough in the efforts to slow the virus and that's data somehow at odds with some state governments are seeking to re-open governments and just this afternoon larry kudlow is targeting a matter of weeks for that guys >> kayla tausche, as always. thank you very much for that we are out of time here on "closing bell. from sarah, mike and myself, thanks for watching. brian sullivan has you covered next ♪ ♪ thank you, wilf, sarah and mike welcome to cnbc's "fast money. we started red hot and ended ice cold the mood we saw yesterday could not be carried through and in fact, the market taking an 800-point, and when oil began to close at 230, stocks began to close an