was a standout by a mile really like this company and they raised their dividend for the 58th consecutive name. focus on fundamentals. >> great having you all with us today. pete, good having you back for sure. >> thanks. >> across the board, we have strong rebound going on for stocks kelly evans picks that up now. thank you, scott hi, everybody. i'm kelly evans. the nasdaq is leading the way once again remember, it was the only one that closed positive yesterday it is having the longest winning streak since december. take a look at the levels. up nearly 3.6% on the nasdaq the dow up 2.25% in the nasdaq, tesla, united airlines and fasten al leading the way. there's the positive tone for stock this is afternoon. it is a different story for oil. back to slumping as the market remains weary that supply cuts

to balance out the demand decline and oil shrugging off that talk of reopening the economy. the commodity down almost % right now. continues to move lower throughout the session all of these market moves come as we kick off earnings season with two major banks reporting and commentaries and moves from johnson & johnson. let's get to all of it with bob pisani. >> powerful rally here all the right stocks moving. retailers, et cetera just off the highs today moved up around 12:00. governor cuomo saying the hospitalization rates dropped and the s&p moved up again and just off of the highs for the day. want to emphasize johnson & johnson. i think the stock of the day not only did they beat, consumer health quite strong here, they increased the dividend bucked the trend of everybody else and lower guidance but guidance a lot of companies not giving

any guidance that's a plus for them the stock recovering good part of the losses recently remember, though, a lot of companies suspended dividends. you're going do see many more and also you're going to see many withdrawing guidance. speaking of withdrawing guidance, roku withdrew the guidance and roku trading up finally banks kicking off the earnings season. the key thing is big reserve bills for future loan losses from jpmorgan and wells fargo. not a complete freakout. the stocks started up. down modestly right now. not a bad start for earnings season a lot of bad news priced in. jpmorgan down almost 30%. >> i agree i want to go back to johnson & johnson for a minute some might say, look, this stock is unique because it's health company at a time when that bull market is helped by coronavirus.

do you think that it's more significant though there's something of a deeper takeaway from the fact to issue guidance and raise dividend? >> yeah. so the guidance is about 5% lower than they had guided previously i think that's fairly remarkable, very good news it goes to the strength as a consumer company and obviously they're benefiting from that, aspects of the coronavirus benefiting johnson & johnson i think any company that can get the hand around a full-year guidance on a global scale like johnson & johnson is terrific. that's a sign to feel more confident. i frankly don't expect it. i think a lot of companies are going to simply suspend their guidance so in a sense you get a little bit of a plus, uptick, because you're able to give guidance even if it's lower than expected a month or so ago. >> great point great point. bob, thank you so much those stocks may be rallying today but the latest survey is

showing extreme pessimism. the cash levels they say are the highest since the terrorist attacks of september 11th. equity allocation lowest since march 2009 and 93% of respondents expect a global recession. joining me now is two guests welcome to both of you again, when you see responses this extreme and something like the fund managers survey that are bearish you tend to think it's contrarian positive sign. >> kelly, yeah at a certain stage all the negative sentiment being intensely negative becomes bullish signal but i think in contrast to 2009, in contrast to 9/11, i believe that the negatives that are there in the bank of america

survey have further to go before it becomes a buy signal and the reason is that we have a total shutdown of many sectors of the economy in a way we did not have in 9/11. and in some ways, the increase off of unemployment, the deterioration of gdp this time are both worse than what we had after 9/11 and in the great recession that we had in 2008, 2009 which is why i think it can become a bullish signal at some point in time but that is not the time to call that signal. >> same question to you and to everybody, you know, knows the numbers we're referencing. global fund managers survey, cash levels are the highest since 9/11 equity allocation is lowest since march of 2009. that was the market bottom last time around. what do you take from this >> to me it's somewhat bullish

because it's so negative but i would argue that it is different this time than the other recessions that we had in the last 20 years. but also, the measures we've taken from different the quantitative easing, the fed backstops, the fiscal stimulus are different this time. i believe the multiplier effect on the money that's getting into the economy now through the fiscal measures in conjunction with the broader fed backstop are going to provide some support to the economy and so that may accusation the blow also, you know, i think the markets are starting to forecast what comes next after all this negative news continues to come out and with that, you know, it's likely we're going to have rolling recoveries they're going to be diversified by industry group, et cetera there is the possibility that maybe things aren't going to be as bad as everybody's forecasting because maybe we won't get to the depths that everybody is predicting. there are reasons to believe that, you know, people are finding a way to work from home,

to be distributive processing, to get things done companies are going to have decent earnings. some able to issue forecast like j&j. others will not. net-net maybe there's a reason for some optimism that things might not be as bad so i believe there's a lot of risk factors that are mostly uncertainties versus pure negatives and investors need to be cautious but i think that these signs indicate somewhat of a bottom bullish factor like they typically have. >> i thought that michael's point of the measures taken compared with '09 much quicker, much more extreme, different in nature, perhaps can contribute to a faster rebound or more vigorous than back then and straight-up what would your investment advice be right now how do you think people should be positioned? >> let me take your first point first, kelly it is easy to hope and hope that things will be better than it was last time around

but if you look at the developments that are taking place, there's a great story in "the wall street journal" talking about how there's a secondary wave of layoffs taking place not only with service employees, blue collar workers, but also, it is extending to white collar employees who are working from home because it is -- that is what i think we did not have in 2009 so that is one more reason why consumption spending is going to stay depressed for a period of time and the stock market correction is also going to go in waves in turn, it takes me to answer the second part of your question, what do i advise people to do right now if i would say if you are fully invested, stay in it there's no point in selling now and figuring out whether it's going to go lower or higher from this stage but if you have a lot of cash in your portfolio, this is not the time to go in. you probably will get a much

better opportunity after all the negatives in the economy get in the equity market. >> okay. quickly -- >> it is not yet fully discounted, kelly. >> fair enough let's end with that question to michael because the flip side of the negative sentiment in the fund manager survey is positive sentiment today, michael, is it overdone the market down 17%, 18% from its all-time highs is there another leg down coming >> well, because of uncertainty, certainly it's possible. looking at the market based on trading today, discounted earnings at the moment looks overvalued but the market is looking to the future which it typically does given the current uncertainties, i can't think of a better period of time to have diversified assets to take the worrying of diplomat asset classes off the table on a day to dais basis and be balanced out and if you do that, cash is negative after what little eninflation we have

at the moment and i think investors can do better than cash and so dollar cost average, we are doing that in the portfolio. safety an enquality on the bond side and exposure, precious metals, gold and silver for the uncertainty factor and the alternative currency factor and i think if you broaden out your asset base i think you'll reduce some downside risk and potentially profit over the long term. >> okay. thank you, guys. we appreciate it good to see you both. >> thank you. >> thank you. meanwhile, companies racing to raise cash over uncertainty over when the economy will restart but taking on more debt. exxon with nearly $10 billion in debt with ge and walmart making the similar move and disney with a line of credit for day-to-day operations for more on the implications of the moves, i'm joined by the chief investment officer of bleakly advisory group peter, welcome >> thanks.

>> we had talked about high corporate debt levels going into the downturn, how bad will they be on the way out? >> keep in mind when a company is going to draw on a credit line the hope is that, yes, it adds to debt on the liability side but it provides them with cash on the asset side that will allow them to buy time buy time to get past this and the hope is once we get through this that the credit lines can be paid back and refilled so it's the rainy day fund that these companies tap into because they didn't have enough cash prior to this. >> right. >> but i don't think over time it's necessarily going to raise their debt to equity because i think they planned and hoped to pay it back as soon as they can. >> what would you say the difference between companies doing this on the temporary basis and companies with highly indebted, highly leveraged balance sheets what was the difference? >> that's a key characteristic of the market is explosion in corporation debt and on a company balance sheets and how

the average credit rating of corporate america just got degraded as the years went on. so the stronger companies are much obviously better able to handle this, not just because of the cash on hand but the revolvers they're tapping and other companies doing it i don't want to say desperation is probably too strong but out of a fear that they can lose access to the credit markets if things got worse. so there's different intentions here but the same goal is to improve the balance sheet, to buy time until we get to the other side of this. >> basically trying to different yate between the companies raising cash even if it's via debt from a position of strength and those from a position of weakness i hate to name names but where would you place exxon, ge, walgreens and disney are some of those in clear positions of weakness than others >> well, i think those are high quality balance sheets in the aggregate. it's the junkier rating credits

doing everything they can to get access to cash whether that's drawing on a credit line, whether that's pledging an asset, borrowing against or selling accounts receivable what can they can to beef up the balance sheet to buy time whether it's going to be three months, six months, nine months, 12 months, we heard live nation on cnbc earlier talk about that they have enough capital to get them through the spring of 2021. that's what this is all about. it's buying yourself time to make it through. >> and then the impetus on the companies pay down the debt as quickly as they can coming out of this. finally, the moral hazard created by the fed which just said it is buying junk bond etfs are there some companies whose credit access would have been shut off and will keep borrowing and what happens if so >> it is a great point the fed will tell you they buy the fallen angels so the company that used to be investment grade

that's now slipped into the high yield side, the junk side, that has a sort of an effect that helped sentiment down the curve but whereas when times were good then, you know, companies stayed alive a lot longer than they should have and i think now investors are not going to fund failed business models and companies that can't generate cash flow to pay their bills so the fed can temporarily save companies that should go under but i think in this cycle investors are not going to sort of go for that and they're going to be much more careful and discriminating in financing bad business models. >> exactly well put peter, thanks so much. >> thank you. coming up, governors across the country are teaming up to find safe ways to open the economies. what happens if you open but nobody shows up? be'll get into that. plus retail and the time of covid-19 some staggering new numbers on where and how people are spending and where they aren't.

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welcome back st. louis fed president bullard saying that the shutdown is costing the u.s. economy $25 billion a day. meantime, chicago fed president evans is saying we need a manhattan project for developing

a covid vaccine and expert fauci said a may 1 target is overly optimistic next guest says the decisions are difficult challenges i'm joined by the founding partner and also a cnbc contributor. tony, it's good to see you you know, i mean, i think the legal issue is probably the most pressing one on everybody's mind because no one wants to open a school or hold an event and get sued for it. >> yeah. for businesses and institutions it is really where the rubber hits the road for them you can have the president of the united states go out and say we think it's time to open that's not going to help you if someone at your facility, your restaurant, your business, your school, your church is, you know, suing you because of opening too early and caught the

disease there and the workers, too. these are just really challenged -- big challenges every client we work with and even our business ourselves are struggling with. i'm sure cnbc is, also that decision is really consequential. >> right how do you think it should be made i don't just mean which official is making it i mean, how much are these decisions going to be left to individual businesses? how much do they need basically, you know, kind of a backup from whoever their local officials are to say we encourage you to make the decision. if you get in trouble for it, you have our blessing. all of that important signal that says this is an approved move and we want people to come back and use your company. >> it's important. look i do think the federal guidelines that we are going to get are important. they are going to talk about the kinds of things that businesses that should do it's a really big country, though the virus is moving at a

different pace and different places that guidance will definitely be helpful. governors and mayors control stay at home orders and open/close orders. they can allow the businesses to open so that does give, you know, some bit of cover to the businesses that open it. it's a case by case basis for every business to make that decision who what do they feel comfortable with the relationship in the communities with their workers, with their customers those are really important what they will have to show them and convince them and use the tools that they have is that the place is safe, that they have the material, they're following the protocol that is will insure it we have seen lots of businesses able to stay open, the essential budses, walmarts and pharmacies. thab able to stay open and there's a lot to learn from the kinds of things that they have been able to do through the height of the crisis so are the

lessons that businesses coming forward have to deal with. at the end of the day, though, individuals and families and employees that will be making those decisions. do i want to go to work? do i have a stay at home option? do i go into the store what do i need to go into a store? >> sounds like a lot of that contingent on testing. if you're a ceo do you need a plan to find a way using vans, order from abbott labs, get tests for the employees, antibody test, too >> yeah. >> does every ceo need to be trying to get that equipment, that testing, temperature checks, whatever that measures will be, do they need to think about that and have a plan for that >> yeah. they need to be thinking about ppe. they also need to be thinking about, you know, the workplace you know how it's laid out. how many people can fit in a conference room anymore? can we do a conference room? what do we need for more than two or three people to be in a

conference room? who what are the cleaning protocols? how many times a day all the material that you want you will have to spend more money on to make sure that you do it right and following those orders testing is, you know, as james bullard said, is the most critical piece here for getting back and reopening we just -- everybody wants to know that the people around them have been tested and know whether they're clean or not and he's right about the expense i was on a call this morning, though, with the national security expert talking about how challenging it is to get to the level of testing we need to have that comfort on reopening so that is -- you know, it is a big challenge ahead of us and should be spending more resources and like to see the federal government spending on testing and labs to process those tests more quickly, too. until we get a vaccine which every expert is says a year away at best if we're lucky, you know, testing is going to have

to come much, much sooner and we have the experience of seeing other countries doing that, as well. >> absolutely. no it is a lot of fascinating moves like you said. larry lindsey says it causes people to be paid higher wages to come back to work the discussions will come but a lot of interesting challenges for the economy. tony, thanks. >> for sure. let's big deeper into the reopening debate what do governors think is the best approach? contessa brewer has the latest for us contessa >> reporter: like many main streets across america, this one in new york is pretty much closed including the anchor businesses that draw people here the bookstore, the independent movie theater so now you have at least ten governs no trying to cobble together a coalition on reopening. >> people need to get back to work the state needs an economy we cannot sustain this for a

prolonged period of time everybody agrees but everybody will also say how you reopen is everything because of the first point which is we are now keeping down that rate of infection. >> reporter: the president's expected to announce details of his own task force today it is causing a bit of a power struggle at this level, you have business owners saying the [bureaucracy s getting in the way. >> enough with the egos and bickering. get it together to begin the strategy and the process. and the help that our businesses need. >> reporter: laura curran said if it was up to her she would be opening the golf courses today, boetd ramps and marinas not because they're essential businesses but because they can open safely. that county next to new york city has more cases of coronavirus than the entire

state of california, kelly. >> wow that's a great point again, maybe there could be some efforts towards normalcy, safer places to start. i'm sure people wouldn't mind the golf course being one of them we appreciate it. >> reporter: little exercise. >> fresh air. might be a shortage of household products but milk is not one of them. why millions of gallons are being dumped. about-face how the government went from helping the strong to buying some of the weakest assets you can always watch or listen to us live on the go on the cnbc app. "the exchange" is back after this

welcome back let's get to the calls of the day starting with tesla. upgraded to neutral. gave it a $580 target. 731 today. the firm said there's an edge in the transition to electric vehicles with coronavirus disruptions making it harder for

the legacy leaders to transition tesla well above the price target and still 12% higher today. significant move next up is zoom. service we're all becoming more and more familiar with moved to an overweight with $150 price target saying covid-19 presents upside potential for zoom not priced in an they expect the products to drive market penetration and future cross selling opportunities. zoom up nearly 6%. and finally, wynn resorts upgraded to a buy. they lowered the target to 107 from 140 they say the stock is cheap right now. they say near term after raising cash and up more than 4% today $ 72 a share. let's get to latest for the coronavirus headlines.

>> good afternoon. dr. anthony fauci say it is united states does not yet have the necessary testing an tracing infrastructure set up to reopen the economy. in an interview with the associated press, the government's top infectious disease expert called a may 1 target date to reopen, quote, a bit overly optimistic and expects easing of rules will need to be implemented on a rolling basis in different parts of the country meanwhile, president trump says he'll soon make a decision state governors of a time line to reopen the economy some governors including new york's say they have the power to make those decisions for their states, not the president. as always, for more coronavirus coverage, head to cnbc.com back to you. >> thank you very much. amazon and walmart higher today, unlike many other who had to close the doors the pressure is whether they'd be able to keep up with demand courtney reagan has new data. >> so while neither amazon or

walmart quantified the sales or the traffic there's a number of other services that are trying to do it for us so check this out. this is a 1010 data panel of 5 million customer debit and credit card transactions saying that wall administrator's online grocery sales in the mornlt of march up 99% compared to last march, of course, no pandemic then and toilet paper, that's become a symbol of consumer hoarding, that is the number one purchase for walmart online grocery up from number 9 typically and makes up 3% of total sales that's three times larger than normal meantime, tracking online spending through consumer receipts and shows us that amazon's package delays are getting better so for the week of march 2, 15% of amazon packages were delayed but for items ordered the week of march 30th, only 0.8% of those items

arrived later than planned >> you know, i have a lot of questions, courtney. how their paper towel inventory is looking i just used walmart.com for the first time to order tp i want to know if amazon's losing share and i see anecdotally signs of that happening. what do you think? >> reporter: that's a really tough one, kelly i think all of these supply chains are sort of being strained i spoke with people that sort of work within packaged consumer goods aspect and also the retailer aspect an enif you're a kimberly-clark, p&g you want them to have access to what they need and not give out all the supply to walmart or amazon, to kroger, whoever it may be and working through all of that and so hard to know spot by spot and where that distribution center you might be ordering from has their inventory levels the moment you look at it. >> it is good to be friends with

people in the rural part of the country with secondary market. >>it is different. >> courtney reagan with the numbers there. small business loans are on the way and many companies are having different experiences one hotel owner about what it took to get 19 loans and what's next for the whole industry. plus, caught in the middle we'll look at how the jobs market changed dramatically and quickly for cerent college grads and those waiting in the wings stay with us when you've got public clouds, and private clouds, and hybrid clouds- things can get a bit cloudy for you. but now, there's the dell technologies cloud, powered by vmware. a single hub for a consistent operating experience across all your clouds. that should clear things up.

welcome back to "the exchange." here's check on markets. half past the hour today a rally across the board

unlike yesterday all three averages dow and s&p on pace for highest close since early march. 3.8% higher for the nasdaq today. consumer discretionary, staples and technology leaders financials are biggest drag. apple, home depot, j&j and raytheon are the dow winners the stock of amazon up 23% and courtney talked about the increase in the numbers. again the stock up just about 6.5% today take a look at the banks jpmorgan and wells fargo in the red there. see the declines of nearly 7% for wells. this after -- i'm sorry, for the whole average. jpmorgan down 3.5% wells down 4%. the amount of money added to the war chest to deal with declines and potential defaults it warned may need to add more

depending on the path of recovery and wells is setting nearly $4 billion aside. these moves for wells led to a nearly 90% drop in profits pressure on the banks across the sector today. relief is trickling out to small businesses as the ppp loans begin to roll out. my next guest is a hotel operator whose business got approval for $2 million. let's welcome in seema mody with vice president of hdg hotels in ocala, florida it is great to have you here were you surprised how quickly you got the funds? what is your first move going to be to do with them >> i was surprised with how quickly congress got it passed and the president signed off on it yes. our first move is going to be to bring back our people, increase their hours, back to where they were a couple months ago, prior to corona and begin to put them

back to work again. >> that would, seema, hope we see it across the industry. >> exactly on that point, azim, the $2.4 million to use that towards payroll and keeping your employees on payroll but how long will that last? two to three months? >> we're hoping two to three months and by then we're in a gradual reopening and seeing the occupancy beginning to pick up, resulting from that gradual reopening and we can wean ourselves off of that government program. >> you currently manage and own 18 hotels. you have another one that's in construction right now how have you been able to keep your properties open as, you know, most consumers are staying home right now >> it's been a challenge we believe in positively impacting our people and world around us an part of that is that we want to make sure that our people who feel comfortable still coming to work are able to

maintain their livelihoods and part of that is keeping our businesses open, to provide them with that. and also provide those first responders and those people who are providing health care in this time of need, patients who are in quarantine providing them with hotel rooms but we feel that that's an important part of our business and our company's corporate culture. >> you have said occupancy down 25% across all of 18 hotels. back to the ppp loan, though you know, you are one of the few success stories out there. are there any additional step that is you took that you think made sure you got the funds right away >> we stayed very engaged with all of the major trade associations, the american hotel and lodging association, the asian-american hotel association, the international franchise association. we have franchisee advisory councils, our franchisers

provided us with a tremendous amount of knowledge and education on this and just staying engaged and staying on top of it. >> you have -- yeah, you have said that's been a big part of your success and getting that $2.4 million loan. what's the biggest risk over the next four weeks as occupancy continues to plunge? >> the biggest -- couple things. one is, you know, those whose hours have been cut and/or whom we have not been able to employ, getting them to come back to work and providing them with the environment that they feel safe and comfortable returning to the other risk is that, you know, the goal here is that the economy gradually begins to open does matter that it's safe and doesn't promote the continued growth of or the spread of this pandemic but we are able to open up timely so that the money that

we get provided, that is not forgivable or not forgiven we are able to timely pay back and meet our obligations on that and for that we need to do business. >> how important is it that your hotels survive your parents came over in the 1970s from india they started a hotel and then you an your brother opened more. how much pride is attached >> a tremendous amount we consider the team members a big part of our family, also and we consider it, you know, our fiduciary obligation to make sure that they're also getting a livelihood during thick and thin that's part of our culture, part of what our parents have raised us towards as it relates to this business and my brother and i really, really believe in that and really important to us. >> great azim, love hearing that story. hope you guys can get back on

your feet real quickly here. thanks so much for joining us. seema, we appreciate it, as well up next, crying literally over spilled milk. our jane wells with a story of millions and millions of gallons dumped amid coronavirus. plus, the sad state of affairs for graduating college seniors, oenterring a job market with way fewer jobs right now finally take a look at oil continuing to sink heading towards the next hour. it's near session lows back below $21 a barrel we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

- [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 for all online and campus programs through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer and i said, "look we can do this!" - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu. welcome back consumer demand for milk is up in the pandemic but getting mill tock the right store shelves is a huge challenge for farmers jane wells is live at a dairy farm in california for us. jane >> reporter: hi. kelly, to cows it's covid shmovid. demand is in the grocery stores, especially for liquid milk and

can't turn an operation around like this on a dime. it goes for butter and cheese and to switch it over to liquid milk it takes time as a result last week about 5% of the u.s. milk supply was dumped, most farmers still got paid through the co-ops but those payments are getting lower and farmers don't want to thin the herd yet or milk less. >> i get paid for milk so inee to -- i still need to supply milk in order for me to pay my bills and i'm hoping that we see a short-term situation here where we get a bounce and we are back up in a profitable range. >> reporter: now, what's happening is the restaurant side has gone away. the grocery side is helping a bit and not enough so many of the more than 40,000 dairy operations in the country have

applied for loans and including this place which the jobs support two dozen families. >> i see the milkman is making a comeback, jane. >> reporter: isn't that amazing? it is true case in point, manhattan milk. i talked to the co-owner they have seen home deliveries spike. last year most of the revenue to businesses and schools that's gone so again, home delivery's way up. it's helped but it's not made him whole yet. that's a milk joke i just made. >> we had a milkman growing up upstate new york fairly common and the guy would come into the house and stick it in the fridge. i was thinking about that with the amazon technology. should you allow somebody in the house? we did that 30 years ago >> reporter: whoo! well yeah. i don't know if you let the guy in the house now under any circumstances but by the way you should go check out manhattan

milk frank acosta, kelly, somewhat famous for the looks i'm trying to avoid a disaster here, by the way. >> yes they have a lot of business to do we'll leave it at that we appreciate it as always. >> both ends. >> an inside look at how the milk gets to your shelf. >> hmm. meantime, there's another 3.5 million entrants in the work force as students prepare to graduate from universities around the country and while companies face tough decisions of layoffs and furloughs they have to decide what to do about new requires we have the story of new grads caught in the mess rahel? >> graduates are in a unique position many like dean of miami didn't work many hours because they were in school so they don't qualify for unemployment or stimulus checks from the government and some are now finding that the job offers rescinded. just a few of the companies

implementing hiring freezes. she was preparing to move with her sister an her mother to chevy chase, maryland, to get a management training program at geico headquarters gave us the lease. searching for a new home in maryland saying it's a once in a lifetime opportunity, she was thrilled that is until she got a call that the offer was rescinded. >> i was in the process of communicating with the relocation assistance team and literally last wednesday i got the call right in the morning, i got the call from a geico representative saying due to the coronavirus they cannot do the on-boarding process for new employees. >> and, kelly, gayle turned down two other offers saying she loves the company, she hopes to work for geico when things return to normal geico told her that she would have to first apply although given priority but this is a

situation that a lot of graduates either find themselves in or will soon. >> i wonder if they'll end up trying to get extra education, going abroad but again, the options to mace in a downturn so different with coronavirus. >> everything is at a stand still so it's hard to know what their plans will be because everything is just sort of in limbo. >> right so tricky. thanks. ahead, we hear a lot of talk of whether this is a "v, "u" or l-shaped recovery. a guest said it's all three recovery and he'll explain next. as we head to break, here's a look at the dow 30 heat map today. some biggest gainers of johnson and johnson after raising the divindhide ts morning. we're back after this. that's why td ameritrade designed a first-of-its-kind, personalized education center. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations.

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super aggressive measures to shore up the economy according to morgan stanley more than $7 trillion has been added to essential balance sheets. how will this spending translate to an economic recovery. >> it's a store down in that commentary the investment grade part of the market is getting a lot of v probably the consumer, the small business area will be a little more u and then you have places that are highly leveraged although they did come through with pretty good programs, if

you will for the high yield area for the fallen angels. it will suffer a little bit. that's more of your l. a lot of the stimulus will filter back to many parts of the economy. the customers are doing well, then they will do well >> i want to dig into this idea because i was interesting. i thought yours was the best analysis of what the government was trying to do literally the next day the fed is like just kids, we'ding, we' buying junk bonds. >> they are trying to say it's fallen angels if it's not change in philosophy. wouldn't be be better to say we're buying everything as opposed to trying to say because you quoted yellen who told sarah

eisen we're not trying to bail out those areas of the economy but now it's like they have changed their mind >> i could speculate the administration and parts of congress are pushing the fed into that direction. even though they probably don't want to. 133 lending is pretty specific on lending to inksolvent companies. it's not supposed to happen. the fed is skirting very close to the edges of 133 lending with that move particularly into the high yield etfs. i don't think that's as big of a deal >> i like this idea that maybe they are feeling some pressure with congress kind of wink, wink, nod, nod we need do you to do this because it's an important goal for us do wu think we'll get to the point where the line between what the central bank is doing and what congress is doing seems

irrelevant there's already been research about consolidating into one sovereign balance sheet. this is a unusual kind of response but willit linger in that sense >> it's how much independence is the fed giving up and they may be giving some up here that's part of the game they are always going to play with congress the fed is definitely venturing way, way outside of its normal mandate. this is not just in high yield even going to main street, you would have never thought back in '08 and '09, the fed would be directing lending to specific structures for small business and put that on its balance sheet or directly lending,

directly lending to municipalities wall street was completely taken out of the municipal bond facility under very specific rules this is the fed that's gone a lot farther than anybody would have contemplated back in '08 and '09. i think your question is a valid one. how political will this get. >> that phrase more power and less independence is really telling. there's a lot of talk about how inflationary some of these moves might be not in the sense of the trillions of dollars of expansion but the chronic shortages in some cases. do you have to bid up labor in order to get people back to work, entice them with higher wages? i'm curious if you would give any credence to those ideas.

it's more deflationary slow down we had to worry about. >> he was very specific on his thoughts about this shock in familiar that it's a disinflationary shock. the demand side is far more important than the supply side that's first order the question is what happens afterwards how quickly do we rebound. h is demand coming back faster or slower than supply i think that's the way a lot of people will be thinking about the demand side. you had a lot of guests on cnbc talk about reopening whether it was the related ceo or others. the slowness with everything would come back is going to keep that demand side weaker and that's a disinflationary story >> even if there's price

pressures that could be deflationary to slow things down in that sense. i have to leave it there for now, sir come back again. >> stay safe >> we like the backdrop. thank you so much. breaking news coverage will continue after this break. tyler will be here for power lunch. we'll dive into today's big rally with names like tesla, netflix, apple, johnson and johnson all surging. the owner of junior's cheesecake will join us. he applied and severed money from the ppp program e adacwh wrernut the process and thro bk ene tu stay with us ♪

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welcome back to our breaking coverage of the markets and tennessthe global coronavirus pandemic. stocks on fire with the dow up nearly 600 points right now and really higher from the get-go as investors get a little bit more optimistic about the path forward. plus, jpmorgan and wells fargo kicking off earnings season. both stocks under pressure right now. we'll tell you what jamie dimon says that has all of wall street talking. small business loans from the government they begin to hit the banks. the ceo of junior's cheesecake who received more than $5 million will tell us what it means for his business >> yes, he will. looking forward to that. thanks let's look at the naz sdaq which is paving the way higher amazon and netflix is hitting new highs. there it is with the gains now