back, but then he's really going to need the money to pay people. at least for now, they get the money plus the extra 600 fascinating. >> it was an interesting conversation kelly, see you tomorrow. >> thank you, sir. >> that will do it for "power lunch. thanks for watching. you can continue with our breaking new coverage right now on closing bell. >> thanks so much. welcome to the closing bell. stocks surging as get the first read of corporate earnings amid the coronavirus. let's have a look at the key things driving the action. continued sign that extreme social distancing efforts in the u.s. and around the world are working to contain the spread of the virus. jpmorgan and wells fargo shares slipping as the banks paint a grim picture of the coming months for the economy and boeing stock is is falling on a surge of cancellations of jet

orders that's weighing on the dow nasdaq about 4% itself today s&p up about 3%, sara. >> we've got big news coming up on today's show. wells fargo ceo joins us to break down the small business loans and impact of pandemic on the bank then later, we'll speak exclusively with the ceo of carnival cruise lines as a they take a huge hit. carnival shares down about 75% this year. we'll have the ceo if and when the industry can get back on its feet with 59 minutes left of trading, let's focus in on the big stories. wilfred has the news on the bank earnings meg with the treatments and vaccines and steve liesman wi k34e7b9s from two fed officials. gl they had opened hirer this

morning, jpmorgan and wells fargo. provisions for potentially bad loans spiked 8.3 billion for jpmorgan, 3.8 billion for wells fargo. even that was not the worst case the ceo said could be higher over the next several quarters relative to what we took in the first quarter while charlie schaffer said it wouldn't surprise me to continue to add to reserves. here's jamie dimon on the unpredictability of the months ahead. >> this is such a dramatic change of events there are no models that have dealt with gdp down 40%. unemployment growing this rapidly. and that's one part. there are also no models that have dealt with a government which is doing a ppp program which might be 250 billion, might be 550 billion

unemployment where you know, it looks like 30 or 40% of the people are going on unemployment, but higher income than before they went on unemployment what does that mean for credit cards or something like that or that the government is just going to make direct payments the people so this is all in the works right now. the company is in good shape we conserve our clients but it's happening as we speak. i think people are making too much of a mistake trying to model it when we get to the end of the second quarter, we'll know what happened in the second quarter >> on reopening of the economy, dimon said quote, hopefully it will be sooner rather than later, but it won't be may june, july, august, something like that. all banks trading lower like trade revenues and wealth management despite the market moves. bank of america, citi, morgan stanley on thursday. some significant declines, particularly in ligt of the fact that the rest of the market is is higher.

>> and in light of the fact that this has been one of hardest hit groups energy's hit a lot harder, but banks are in the bottom rung so is it the pessimistic view in those loan loss reserves what is it that the market is focused on fact they're worried about making profit with interest rates near zero? >> i think it's slightly the opposite in a way. it's the fact that we've got a big increase in loan provisions and earnings score suggested that it could get worse from that and the interesting just point out for the broader market on that, so we're trading down because of fears that there are going to be more failed loans made by the banks in the quarters ahead than expected those loans are made to all sorts of sectors, yet the banks are are the only stocks trading down if that is the cause and just go back to that point that there's so much urn centiuncert

as to when the economy's going to open and which company is going to suffer the most today, the banks are feeling the heat from that, yet all other sectors are higher energy and banks, the two sectors in the red much more on the banks to come cfo of wells fargo will yoin us shortly. every day, we're getting new di tails op the health care industry's battle against the virus and today, two major pharmaceutical companies say they're teaming up on a vak sein >> these are two of the largest vaccine makers in the world. usually known as competitors they're teaming up the to work together on covid-19 vaccine each is supplying different technologies they've used on other vaccines before and if all goes well, they say they plan to start phase one trials in the second half of this year beyond that, if they continue to go well, they say they could have a vaccine available in the second half of 2021.

this follows other os like m moderna who said and of course they're already in clinical trials, if that goes well, they could have doses available for high ris b k groups like health care workers this fall johnson & johnson whose cfo joined us saying they're still on track to start human trials in september of hair their vaccine. so these timelines are faster than ever before some are expressing some skepticism one say iing that one-year timeline, that looks optimistic to him he thinks it's going to take longer for us to get a vaccine, but this is an unprecedented situation and a lot of folks are talking about regulators being flexible we'll have to see how it goes. >> and so many resources from these big companies are going into it. thank you. meg, don't miss jim cramer's interview with glaxosmithkline's ceo tonight about all of this.

two key fed officials out with new comments about the pandemic and taking a different tone. steve. >> the st. louis fed president and chicago fed president both talking b about things fed officials never talked about this time, the need for massive national testing both saying if they want the economy to recover, what appears to be needed is a massive national testing regime and in that case, they're saying a v shaped recovery could still be b possible not sure anymore that v shaped is their best case jim bullard making a cost benefit saying if the economy is costing $25 billion a day to close any amount we spend on testing below that would be worthwhi worthwhile >> widespread testing of everybody in the economy would put an end to this crisis.

and would you know basically end this whole episode we can't get that right now, but this is costing us $25 million a day, so things that didn't seem possible today become possible >> and charlie evans from chicago calling for what meg was talking about, saying we need a manhattan project for a vaccine and both of those are saying essential to get the economy running gru ing again. >> after the break, we'll speak in a first on cnbc interview with the wells fargo cfo about the impact of the pandemic and how his bank is handling the government's small business program. wells fargo is down 4.6% as we stand. s&p 500 up 2.7%. back in a couple of minutes. 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. to go beyond ordinary etfs. and strengthen client confidence in you. shrewsberry. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. woi felt completely helpless.hed online. for a prospectus containing this information. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

49 minutes left of trading a check on the markets for you hire across the board with the dow up about 466 points right now. about 550 at the highs of the day. s&p 500 up 2.7%.

let's check in b b on market movers number of energy companies moving chesapeake announcing a 1 for 200 stock split. increasing share price to a dollar to keep its new york stock exchange listing exxon mobil mobile borrowing another $9 billion in debt and valero warning it might report a first quarter loss as demand for gas plunges with people off the roads energy and financials, the two sectors in the red right now >> wells fargo shares lower after reporting quarterly results. the bank setting aside nearly $4 billion in loan loss provisions. the cfo, john shrewsberry, joinings us now. very good afternoon to you thanks for joining us. >> thanks for having me. >> i feel like there's a sense on the calls that provisions are going to get much worse in the quarter ahead. the stock opened higher.

it's now down by about 4.75% similar theme comeing from jpmorgan is that fair do you think provisions for bad loans in q2 could be bigger than they have been this past quarter? >> hard the say. i think that the economic forecasts are changing rapidly at least over the last several weeks they've been generally been getting more steadier ra rather than softer those are meaningful inputs into how people are calculating future expense the big question is when the economy will reopen and when people can go back to work and go back to spending money and consumer spending is is down markedly year over year and that has an impact so there are specific areas like energy, et cetera you were talking about just a moment ago where there were some id owe sin cattic things that have happened. we're just foreshadowing what

might happen as a result of an elongated economic trough. i think we do our best to capture them in real time, but if the economy is going to remain closed into the summer, through the summer, et cetera, then presumably, things could get worse. we'll pick that up as we calculate. >> totally get there's so much uncertainty and it's hard to predict and put specific numbers on it. if i look your total reserves ratio to loan at the moment, that only increased to 2.1%. and 1.2% might be high relative to the good times, but given the dramatic impact we're facing on the economy, if you came out with only 1.2% of your total loans going back that would be a massive win, wouldn't it? >> well, it depends. in our own severely adverse case for our stress test we submit as part of our annual process, at least the last time around, our

nine quarter losses were about two and three quarter percent. that's a more severe set of economic circumstances than we're currently imagining here and incidentally, each quarter, we do take charge offs as they occur, which you would add to the amount of the current provision for what's likely to happen over this year, this year plus next year so could it be higher? perhaps. we have our loan portfolio looks a lot different than some of the other big because we have an overweight on jumbo mortgages, which tend to be the more affluent people and more modest ltv. we have an under weight on credit card receive bables and credit card tends to be b the source of some major losses in an environment like the one we're imagining. there are other areas for sure, but at least if you're comparing from bank to bank, that's probably important

>> john, sin wre about those los provisions, way more than we're talking about earnings and revenues, between you and what jpmorgan reported this morning, it's more than $12 billion to cover defaults on the economy. can you yus hejust help people o don't follow banks to understand what those numbers are about an whether they project pessimism >> this is the first quarter for a new accounting standard for loan loss provisioning for banks, which is more than any of your viewers want to hear about, but it does change the approach. we're now, the it's a life of loan estimation of loss. previously, it was a shorter period of recognition in the allowance calculation. so these numbers are bound to be a lilt bit bigger than they would have been previously you're really going loan category by loan category. and estimating the probability of default, which is going to be

higher and higher unemployment and lower gdp world and then loss given default, which tends to be very high for unsecured types of credit like a credit card i mentioned and it can be low for secured types of lending and i would put modern day mortgage lending in the category like that. and you know your estimation of where unemployment goes sh, gdp, stock market, all those things matter on a regional basis as well so national banks tend to have their whole portfolio broken up in regions of the world and the country. we're talking about the top level numbers, but the details really matter and you know, on as i mentioned, in our own severely adverse calculations of our own annual stress testing process, we under those circumstances could imagine losses over a little bit more than two years amounting to about two and two quarter

percent. think about that as the total amount of loan portfolio that gets written off during that time frame we're sitting here today with the writing on the wall but the economy not having gone quite into recession, measurable recession yet, it seems a little conservative to assume this nine quarters from now, we're going to live through something as severely adverse as that >> probab my follow up to that, isn't the massive unprecedented fiscal stimulus plan that, or relief plan we just got out of washington, more than $2 trillion, designed to keep businesses in business and people employed? are you saying we're still going to see widespread defaults. >> no, i'm saying -- certainly we don't plan on stimulus and as

you say, we've gotten it so that's definitely an off setting benefit that people will be picking up in the math either onan imagined or realized basis as people receive those payments and for example, under the ppp plan if they keep people on the payroll that otherwise night not be and for consumers who are receiving these payments directly, if they get out there and spend them, that will have a huge benefit this isn't forecastable. and will pick up with the passage of the next week, months as it happens. >> john, the fed has temporaril lifted the asset capital on wells fargo to help you with small business lending i wondered whether you're disappointed in the way with which the fed labored to get to that decision. it came two or three weeks after you guys initially requested it. they made very clear that it was only temporary they also ensured that you will have to give any profits from

the ppp program the charitable causes as opposed to make money yourself were you disappointed they made that so difficult? >> not disappointed at all we're glad we got to work together on something that ends up working out in a way that can benefit our small business customers. we own the fact that we have the asset cap. the fact that we have to do the work necessary for it to go away and it was constructive that we ended up where we did and would it have been better if we, wells fargo, had caused it to happen a couple of days earlier, that would have been helpful, but we're in the position now of processing massive numbers of these ppp indications of interest, et cetera. so we're looking forward to the benefits of that for our small business >> which i agree is great for the small business clients of which you have many indeed, but i guess you've settled with the

sec. the doj. should this not really be now a moment when the fed should be considering lifting the asset cap permanently? >> we are working hard to create the circumstances that allow them to consider that and, the board feels that way charlie feels that way and the leadership team feels that way so it will happen in due course when we've delivered what we need to deliver to them and in the meantime, we're making it work we have a trillion balance sheet so we can support a lot of customer activity and what we're talk iing about at the margin. it would be great if we had created an outcome that allowed that cap not to exist today, but it does and we're working with it and we have as you pointed out, created a work around for the ppp and main street loans that we can originate now in size >> that said, john, there was a moment on the call where charlie, your ceo, kind of suggested that your dividend is even safer than perhaps some rivals because of the asset cap.

because you have fewer internal uses of your capital because of the cap and therefore, the use of the capital the return to hair holders is even more assured. is that fair that the dif dividend has less likelihood of being cut? >> we don't have this opportunity of redeploying internal generated cap it will for internal purposes to make more loans and so given that, our capital levels are probably less under stress than others because we're not growing at the same rate some others might be, so yeah, i think you can conclude that. >> john, thanks so much for joining us >> terrific. thank you. >> the wells fargo cfo, the stock down about 4.8% as we stand. 38 minutes left of trading after the break, chinese buyers spent millions of dollars at one high-end retailer when it finally reopened

we'll scs etdiuswhher it was a one off or a sign of a quick rebound for the entire luxury market there are times when our need to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7. we've always believed in the power of working together. that's why, when every connection counts... you can count on us. ever something's gone mogotten into the office.m, i hear you.

feels like there's no barriers between departments now. do you think everyone appreciates it? i do. huh... forgot my glasses. serivcenow. the smarter way to workflow.

one luxury retailer in china saw millions in sales after it finally opened robert frank with the story for us hi, robert >> they're calling it revenge spending after months of quarantine and isolation, chinese consumers spent $2.7 million in one day. that's accord iing to women's wa daily. it's believed to be the single largest sales total for any luxury boutique ever in china. they've been posting their purchases on social media, as

well as bags, shoes and jewelry. they do not disclose store sale, but the news helped all big luxury stocks. lvmh, hermes up nearly 4%. all up nearly 20% from their lows chinese consumers account for about a third of all luxury purchases and i think they're hoping the binge is a sign of things to come as u.s. and europe also look to reopen >> it's also robert i guess a kind of bit of a boost for br k bricks and mortar versus online. this reopening up led to a jump at all >> yeah and i think that's something we've underestimated in the past month. people really enjoy and perhaps forgot how much they enjoy the actual shopping experience you're right being able to go to the store. which is magnificent palace of luxury was part of the joy in addition to buying these things and showing them off so i think we could see some of that upside

surprise in bricks and mortar here as well >> thanks for that 33 minutes left to trade we have up 2.8% on the s&p 00. still ahead, the ceo of carnival will join us as the entire cruise industry suffers huge declines we'll ask him when he thinks customers will feel safe embarking on a cruise again and here's a check on bonds. yields mix today the ten-year around 0.75% as we stand. our special coverage continues after this short break

welcome back 30 minutes left of trade there's your sector snapshot the only group that's lower is energy it's down less than half a percent. consume er discretionary on top also consumer staples up 4%. communication services up 3.5, but overall looking like another strong week with the market up this week almost 2% on top of last week's rally, which was the best since the '70s and have a look at amazon which is higher today. another big jump of 5.4% and now hitting new highs. amazon stock is up 21% this year the market is down 12% for the year so an example of one of the rare winners in a session

clearly amazon still doing a ton of business from grocery to packaged delivery in the stay at home economy as i mentioned, 30 minutes left to go. some things drive iing the actin in this final half hour of trade, continueded signs that extreme social distancing efforts from the u.s. are working to contain the spread of the virus. jpmorgan and wells fargo both reporting earnings shares slipping as they paint a grim picture of the coming months and boeing's stock turning negative falling on cannes laces of jcel orders although the s&p is at a one month high and the nasdaq is up almost 1% >> time for a coronavirus update >> president trump planning to meet with leaders via video conference tomorrow to host. they're gathering at the white house today, cnbc reporting that hospitals, hhs and fema will launch a a ventilator

partnership with devices they don't need to lend to other facilities and get replacements from the national stockpile. the first batch of ventilators are ready for delivery to the government g.m. says it will ship more than 600 devices this month and marriott says it expects to close more hotels as the key revenue falls. hotel chains have been hit hard as americans stay home as always, for more coverage, head to cnbc.com back to you. >> thank you >> 28 minutes left before the bell here is where we stand in the markets. it's another up day on wall street the s&p 500 up now 2.97% so we're up almost 3% there nasdaq up almost 4% and the dow's up nine points it's led by apple, but you've got strength in j&j. home depot, walgreens, a mix of staples and discretionary stocks still ahead, the ceo of carnival cruise lines which saw

coronavirus outbreak on its ships will be joining us for an exclusive interview. we'll discuss the fallout from the entire stindustry and how mc money his company is burning through amid this lockdown ♪ you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.

i was overwhelmed. and i didn't know where to begin. ♪ i came across sofi and it was the best decision of my life. i feel cared about as a member. there's no extra costs for it or anything like that. it's all kinda like, through the app. we're getting a super competitive interest rate on our money. we're able to invest through the same exact platform. ♪ i really liked that they didn't have any hidden or extra fees.

♪ sofi has brought me peace of mind. truly thank you for helping me prepare for whatever the future has in store. it's all because sofi let us see light at the end of the tunnel. - so thank you. - thank you. ♪ ♪ break iing news on california's coronavirus response plans contessa brewer has them for us. hi, contessa >> gavin newsome just gave a

news conference in california talking b about a specific checklist of essentials that california has to have to be reopened it started with the ability to monitor, to contract trace and to isolate those who have coronavirus and be able to po support them next would be the ability to keep people who would be more vulnerable to severe coronavirus from being exposed to infection. they need the hospitals and health systems to be able to handle surges. they need they are put ibs they need businesses, schools and child care centers to effectively manage the social distancing then ability to go back and shut down california, do another shelter in place order if a resurgence in outbreak makes that necessary. >> the key one being the first one i think just reading through the press release, the payability to monitor, protect through contract tracing, isolating and supporting those who are positive, which has been the big question for a long time

and i don't think the capability to do that exists yet. >> look, they're hoping that they can ramp up the number of tests that are available the widespread testing that needs to happen. so that you can tell who maybe having coronavirus but is asymptomatic and therefore able to spread the virus and right now, if you take a look at what governor cuomo said today, it's not there yet. they don't have that capacity. >> thank you so much we're up 3% on the s&p with what, 23 minutes left. >> another big rally day for stocks as the investors continue to look on the bright side of things, whether t the infection rate peaking, massive stimulus we've gotten from the federal reserve and the government are on the idea that everybody is is talk italking about this the market is is up more than 20% since those march lows joining us now, the head of multias a et at t row price. welcome back so how have you guys been shifting money around amid this big bounce back we've seen in

stocks >> the questikey question in ths volatility is is how risk on do you want to be we have been adding to stocks relative to bonds on weakness, but you know, over the last two weeks as you said, the s&p 500 is is up over 26%. so we are going to take a pause. and remain moderately risk on for the moment and start looking for other more w ways to add risk in markets that are cheaper like credit. the key question is do we need to time the bottom this is -- are we going to see another bottom and ultimately, it doesn't matter that much. we just did a study of 90 years of data and looked at 17 sell offs during which the s&p was down 15% or more and if you bought early, one month before the bottom, 17 out of 17 times, 100% hit rate, you

would have made money of o stocks 12 months forward interestingly, if you bought late, one month after the bottom, you would have still seen a 100% hit rate on stocks 12 months forward. the bottom line is that this crisis is different in terms of the speed of the sell off. the speed of the economic heart attack if you will the speed of the monetary and fiscal response, but if you're willing to lean into risk assets whenthey're generally cheap, you are likely to get rewarded over one, two, three-year horizon. >> why not stick to stocks then? you talked up credit as an option a moment ago. the day from the banks we heard how much credit risk there is out there. >> yeah. and the trade up for credit will be look, are you getting paid just for the liquidity aspect? the liquidity part of the

spread if you look at the carrier expegting then you off set that with the increase in defaults, defaults are b absolutely going to increase and you look at the na fact this stocks and we're sticking with stocks moderately overweight we're stop wg a 26% rally. so we're turning to credit and looking at a class that's still in the 10, 15%, kind of cheapest range it's been in its history and we're looking at it as potentially higher risk adjusted return on an expected basis. again, we're look iing at six t 18 month horizons here >> so sebastian, what types of stocks are you buying and are they different than say what you would be buying before this whole crisis began >> right so we're looking at two scenarios. one of which is more likely on how things are going to look coming out of this crisis. the first scenario you could

call the japan scenario is that we end up with even lower rates than we had, low growth, low inflation. in that case, the new trade is the same as the old trade. and you're going to see large cap perform well growth stocks. we're mod rally overweight growth stocks in the u.s another scenario which could be short lived or has a lower b probability over all is that we see some kind of reflation just had a news item on pent up demand and increased spending on luxury in china. while you could see with all this stimulus, this helicopter money, a reflation in which case you could see finally the rotation into value stocks it could be short lived. it's a lower er probability sn e

scenario you can also position for that by being long small cap stocks they've underperformed 18% over the last 12 months, relative to large cap so there are ways to build optionalty in the fort folio. >> thanks so much for joining us >> thank you >> this is the last commercial we're going to take before the close. up next, we'll have uninterrupted coverage of the final minutes of trade 18 minutes after the session up 3% on the s&p 500 as homes become schools at&t has created a $10 million dollar fund to support distance learning tools, curriculum and resources to help educators and families keep school in session does anybody know what this book is? hi class. good morning. good morning. because the key to keeping kids learning, is keeping kids connected.

our retirement plan with voya gives us confidence. they help us with achievable steps along the way... ...so we can spend a bit today, knowing we're prepared for tomorrow. wow dad, do you think you overdid it maybe? i don't think so... what do you think, peanut? nope! honey, do you think we overdid it? overdid what? see? we don't think so, son. technically, grandparents can't overdo it. it's impossible. well planned, well invested, well protected. voya. be confident to and through retirement.

don't get mad. get e*trade, dawg. we are now in the commercial free market zone >> joining us to break down today's trading action is dan and david eliassen from hen see funds. >> let's kick things off with the banks. earn iing came out today wells fargo's ceo suggests the company's dividend may be safer than some rivals due to the fed's asset capital at wells fargo. didn't directly mention his rivals though. john shrewsberry weighed in on that in the last hour. >> we don't have this tension or actually this opportunity of

redeploying internal generated capital for purposes of making more loans, so given that, our capital levels are probably less under stress than others because we're not growing at the same rate that some others might be, so yeah, i think you can conclude that. >> 7% or so, the dividend yield on welz fargo at the moment from the ceo and cfo. all but a guarantee it won't be cut, which is encouraging to see, but as mike wount would point out if the stock is declining today you've already lost a dividend yield in terms of returns >> you know, listen. you know how this goes the bankses dot stocks are the first ones to report just a really sharp focus on the results and oftentimes, the way they react to the earnings is how -- that being said, i

thought it was a great interview with the cfo. o. they take full responsible ilit for the past year's problems that was a silver lining about the dividend if the stock can stabilize, i think it will look attractive then the dividend should be a draw, that being said, i just don't like the areas they are exposed to this early in this financial crisis that we are in. therefore i think thesebanks should remain under pressure until we get more clarity about when the economy comes out of what is certainly to be at least a one quarter recession. >> you have a small and a large cap fund what's your strategy for which banks you own and how comfortable do you feel about them heading into this after what we got today?

>> i own the banks and processors they have the capital and earnings to b handle what's ahead, which we're not sure. so today's action is a function of the fact there's still a fair amount of uncertainty. i think a tremendous amount of uncertainty in terms of how things are going to play out the stocks are inexpensive, but are going the stay inexpensive until there's more certainty so between now and some date in the future, they're probably going to stay cheap and volatile i think two things are on my mind one is back in '08 and '09 so we had the last cycle that went against the banks, the ten-year was about three and quarter. today, it's b about 80 basis point, 75, so we've lost a lot of spread long-term. the second thing is is i think

the banks, because of '08 and since then, they're being asked by the federal government and different states to be b the providers of relief mean iing tt now don't pay your mortgage, your rent, your credit card. and that's going to put pressure on them. they're not asking people to not pay their netflix bill, their phone bill for apple they're asking people to not pay their mortgage and so debt is the first line of relief and that's what bank own. so i think that's a concern to me because it's a pattern where nobody's pushing back. every bank is saying we'll do that, that's fine. we'll defer the payments because they don't want to get up against the politician

that's going to be b a problem for them going forwrd and they've got to figure that out >> jamie dimon sort of alluded to that on the call. meanwhile, leon black finding opportunity in private equity. he joined us yesterday with his take on the space. listen >> we'ring at leez yur, entertainment, but areas in insurance. we're looking at companies we've followed basically,we have the largest alternative credit platform in the world. and we've been one of the greatest i think providers of return in the private equity business and that covers you know, 20 different industries. >> he was referring to bridge loans b, whatever else, to

riskier companies perhaps when they won't get that financing elsewhere, maybe from the banks, because they are considered risky. just a reminder of what some of the big, smart money does during these crises, these recessions how do you find opportunities investing like that? >> keyword there was credit and when you think about some of those areas, those sectors he mentioneded. the equity has been annihilated. we know this lockdown in the economic aftermath of this health crisis remains longer than people hope or think, a lot of equity is is going to get wiped out but there's going to be amazing opportunities on the credit front they have capital to deploy and they're looking for the fasthest returns and a obviously there are going to be some of the biggest winners. this early in the crisis when you think about what's happened, this is the worst health crisis we've seen in a century.

it's the worst stock market decline as far as speed peak the trough in a century. likely to be the deepest recession we've had in at least a couple of decades. to me, i just don't think that what we've felt the pain at least on the financial markets standpoint and i think that's really what jamie dimon and wells fargo were saying with those loan loss provisions, that it's a bit too early the likely hood this crisis has been encapsulated in a two month period just doesn't seem like it makes a lot of sense i suspect they're keeping a lot of dry powder because this thing is likely to go on longer than people hope and think. >> apple's iphone shipments in china rebounded last month and josh lipton has those details for us hi, josh so listen. what it looks like the chinese smart phone market could be showing signs of improvement analyzing government data, they say smart phone shipments in march were 21 million.

that's a decline of 22% year over year, but remember the it was a whole lot worse in february, but apple as a team estimates saw shipments of 2.5 million in china and that's up they say 18% from march year over year. money center says this is a positive sign for apple bulls. it tells investors, he says, that apple's partners in china like retailers and carriers are seeing greater demand now, perhaps indicating he says, that the apple chinese fan is bouncing back. apple is scheduled to report earnings on april 30th back to you. >> just to clarify, up 18% year over year for the month of march suggesting there's more than just a small bounce from the low. it's a catch up bounce from where we would have expected to be >> analysts were taking their best guess i know the team at ever core

telling his clients he believes the apple fans in china seem to be higher income, white collar workers. perhaps resilient. relatively resilient to the shutdown that happened over there. the question for investors now as apple sort of outperforms the broader smart phone industry in china, do you think they can rep lay ka ly kate that from other regions. hopefully we'll get more from tim cook this month, guys. >> thanks so much. >> josh, thank you i was just going to ask dave if you think we can really look to china as a model rest of the in terms of rofrry. it's great to see that recovery and when you see it in hard data like iphone shipments, it's encouraging, but can we extrapolate that in terms of f what the recovery is going to look like here >> the thing i'm watching in china is for the number of new cases of the virus and if they can't contain it or it flares

back up, it says something about what we're going to have to do or how long it's going to take for us to get back so you know, i think i don't know enough about china. i don't think many people in america do i guess i shouldn't speak for everybody else and certainly myself, but i'm watching the cases. i do think the supply chain will be recon figured around the world because what's happened and that's going to hurt china chain's been a big part of our growth in the world and if they go down to a 2% or 0 gdp, that's going to hurt everybody. at the end of the day, this is a worldwide event. we're not hearing anything out of spain or italy or germany about how bad their economy is and we're focusing on our own. but you know i'm disappointed oil's turned back down because there have been a will tlot of s out there related to oil and that's not a good thing to see

it reversing and i'm surprised the market's up as much it is on that there's a lot of things swirling around and we have to sort of try to avoid the noise and stay focused on the companies that we have the most belief in. >> one company that's on the move is roku f after it reported a surge in streaming hours. julia. >> that's right. shares are up about 10% after the company said it's benefitting from people staying home due to coronavirus. roku reporting an acceleration in new account growth and viewing. viewing up 49% in the first quarter. now oppenheimer increasing its price target on the stock on that news, but rbc lowering its estimates and price target in the wake of roku withdrawing its full year guidance and needham lowering its estimate on ad loads following with narrower group of advertisers shares are still down b about 20% year to date back to you.

>> julia, thank you. and dan nathan, four minutes until the close. just looking at some of the action, it's pretty positive another sharp up day despite as dave mentioned that decline in crude oil, down 8% energy is the only sector lower. you were bearish going into this whole market crash we saw in march. are you surprised at the paid speed and the sort of magnitude of the bounceback we've seen so far? >> no doubt about it i mean listen, i was on fast money on march 23rd, the day we closed at the lows down i think at the lows, it was 35% from the february 19th peak and i just thought things got a little overdone in my 25 years in the business, i had never seen a decline to that extent in such a short period of time there just didn't seem to be too many sellers left. the last guest made a great point r, with oil, with what

jamen dimon said today what did we learn? we learned the future is about as clear as mud. and the fact that a stock like apple is trading up 5% today after a massive run off its lows on some report that they might have sold 2.5 million iphone units when they're supposed to do 185 million this year, i just don't get it valuations are getting rich right here with apple trading back at 22 types earnings estimates that will come down. they are way too high for that company. so i just think if you want to look at the data, i think looking through the lens of the stock market on what the health crisis and economic crisis are to bripg over the next few months or few quarters, right now is the wrong lens to k look at it. i suspect we turn back and i think there will be a retest of those march 23rd lows in the coming months when the realization that the economic impacts of this crisis are going

to be felt far longer than when the kriss has peakedment. >> thanks so much for that just over one minutes left until the close. check in on the broader marketses up 3% on the s&p 500 2.3 on dow because of boeing's declines always a dispropors nat points impact on the market in terms of points the dow is is up by 539 points high of o the session was 650 so not far from that. the nasdaq leads the charts today up about 3.9%. the russell lags up only 2%. on terms of the performance on the s&p. 10 out of 11 sectors are higher. consumer discretionary, staples and technology all up more than 4% they lead the pack energy is the only one u in the red, but financials is is around the flat line with lots of the big banks themselves in the red following those earnings that underwhelmed wells fargo down about 4%. morgan stanley is higher goldman sachs is only lower by

0.5% a lot of banks set to report tomorrow throughout oil taking a leg lower throughout the afternoon today. down u about 7.7%, explains why energy is the only sector. also dollar weak today that helps for sentiment to equities, which at the close, are high rer by 3% on the s&p 500. >> and welcome back, everyone. if you are just joining us, the stock market recovery continues. take a look at how we finished up the day on wall street. it was a higher day. the dow closed up 560 points 2.4% the s&p 500 had a 3% gain. nearly all sectors were higher looks like ten out of 11 fini finished heigher. consumer staples and discretionary were the best performers you got strength in technology as well today.

that helped the nasdaq it closed up almost 4% faang had a strong day and that's the overall market. the russell 2000 index of small caps closing up by 2%. it was a relative underperformer just to tell you some other market factoids here, crude oil down almost 8% that was the weight on energy and the market higher for the third day out of the last four sessions the market's up about 2% overall for the week and now if you're tallying it up, the s&p 500 only down 16% from its all time highs that we saw back in february before this crisis began coming up u in an exclusive interview this hour with the ceo of carnival to discuss the future of the cruise industry and using his company's ships as temporary hospitals. >> joining us to talk about the market day, nathan, david and paul from heritage capital

very good afternoon to you all what do you make of the scale of the bounce that continues today? can you still be constructive on it in the short-term from here >> not sure if we've got paul yet. we'll come back. >> wilf, i only heard the last couple of words of your question about equities the other part faded out >> talk us through your view on eck quities after this ferocious bounce >> sure. two weeks ago a, the chorus, the masses were talking about s&p sub 2000, 1500, 1700 couple days later, everyone's talking about the retest now you've got the bottom is the most popular choice of words for the market by the dips since 1999 pre to 2020, couldn't find someone more positive than me. i think the problem is part of

the economy is not going to recover. i don't think we're going to s&p 1500 but i think it's so premature to think we're going back to normalcy and you're going to see dow 30,000 in the next couple of weeks to couple of months. this has been a phenomenal short squeeze. a lot of the algos pushing the markets higher, but i would say certainly you're closer to the end of the beginning of this rally than anything else there will be a lot of back iin and filling. right now, the crumbiest, energy is ripped from the bottom. the banks have lifted up from the bottom reits have lifted from the bottom so you think at this point you're almost hitting the top of the ceiling in the short-term. there should be some backing and filling. best case if you're a bull then you'll get some much better and stronger leadership. >> so wrou can't expect the v

shaped rebound in the market to continue without a v shaped rebound in the overall economy, which doesn't look as likely >> that's probably the way to look at it, but i don't think this is going to look like the bottom of christmas of 2018 where we, we ripped, we turned around and we went vertically higher i don't think it looks like that i think it's more saw tooth and economically in 2019 was much better as the fed pivoted. we know where the fed is they're there with both arms, feet they're looking to buy where ever they can. there are huge unintended consequences of what the fed is doing. i was so floored and shocked that they went to buy risk assets like junk bonds floored. because we're one step closer to buying equities and where does that put us? like japan with tons of zombie

banks. so i don't, i think the economy and the markets are diverging and will continue to diverge >> dave, your points earlier you prefer tbigger banks to the smal isser. they're outperform ed relative o the broader banks index today. are they more attractive plays in this type of environment? >> well, i think what you learn from jpmorgan and wells fargo is wells fargo is closer to the consumer and it just felt like there was especially on the part of the investors after the call was over because of their exposure to consumer and restaurants and jpmorgan's closer to wall street. they have those kind of loans b, but it's not as much so i think the smaller the bank gets, the more they're going to be exposed to small you don't

want to be the bank that made a whole bunch of million dollear loans because that's going to be a problem. you want to be the bank making the $300 billion loans i think wall street will do okay not something you're going to cheer because you don't want people to get mad again like they did in '08 and complain the that wall street's the only one making any money this is a main street recession and if you're a lender to main street, there's nobody there now and if there's nobody there, there's no payments being made so you know, wall street's doing fine but main street is shut down and that's where the small banks lend so you got to be careful with the smaller banks. >> let's talk about the health side of things you had a development today,

sanofi and glaxosmithkline teaming up to work on a vaccine candidate. every day, you have hundreds of research institutions and companies in this country working on not just vaccines, but potential treatments, testing and you know, these things that could move us forward very quickly in an unimaginable way i just wonder how much that gets factored into the overall market right now when it comes to the outlook for the economy. if you look at something like a treatment that could really you know be a game changer in term of getting us out of the hospitals and icus this could be a whole different trajectory >> we all have to be hopeful about that and i think some of the smartest minds on our planet are focused on these issue s but if we find the therapeutics, the antibody

treatments, the vaccine, that's how we dig out of this economic hole we're in, but a a lot of those are kind of one off situations and i don't think it's a huge impact for the pharmaceutical and bio tech space right nouchlt they're not going to be able to make a huge profit off those in the near term, but i think your point is broader if we are surprised if these treatments do come earlier, if a vaccine comes earlier. if the collaborations and all the billionaires and geniuses can figure this out sooner than later, then maybe you get that u recovery from the economic standpoint a v is just out of the question. there's just no scenario i think you can imagine in the next few months where this economy is going b to be able to v because we have tested less than 1% of our population how are consumers going to go back to do what they do and spend somehow are employees going to have their workers come back in mass over the next few months until we've had mass testing? until we have that, it just doesn't seem particularly likely gep, the stock market is telling

a very different story than the rate of testing and our ability to get back the to work and consumers having money in their pockets to spend again >> let's hit j&j because that stock led the dow higher raised its dividend. bob pisani has the details bob. >> and really two things raising the dividend and guidance was better than people expected, but it's that raised dividend that called people's attention because they're going the other direction. 6% increase in the dividend an look at johnson & johnson. regained all the losses. 148 it was a month and a half ago, then 109 now 145. that's quite a move. most companies the ones that are doing it, they're suspending their dividends. it's a long list of companies. boeing, delta, darden. ford hilton in ord nordstrom. they're a bit of an ano, ma'lee. i think you'll see more cuts

from hotels, energy companies. i don't think several dozen. the other reason they're having such a good day, the guidance overall. they lowered their guidance, but provided it. it's about oh, 15% below the guidance they provided a couple of months ago a. pretty good considering the circumstances. back to you. >> thanks so much for that our thanks also to dan, david and paul for joining us this afternoon. coming up next, we'll ask jim krcramer about the market and g his highlights he's just done with the ceo of glaxosmithkline plus carnival burning through t $00 million of cash per month with its cruises halted coming up, we'll ask the sthas y's ceo how long tt' suain abl and how he plans to raise more cash. that's coming up just shortly. don't go anywhere. what do you look for when you trade?

i want free access to research. yep, td ameritrade's got that. free access to every platform. mhm, yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work.

now offering zero commissions on online trades. we charge you less so you have more to invest. ♪ aiming the start trials this year, jim cramer spoke just now with the ceo of gsk. listen >> i think this is a pretty historical lines can you tell us what each party brings to the equation >> what we announced today we think is an unprecedented

collaboration between two of the world's biggest vaccine manufacturers who have been been bringing proou uen vaccine technologies and scale to develop hopefully a vaccine against covid-19 we also of course both bring significant fakihturing capacity and if we're successful that we're hoping to get to hundreds of millions of doses of by the end of next year but a lot of work to do and we're sure the world will need more than one vaccine considering the state of demand. >> jim join us us now. the point she made about scale seems really important this is the type of american ingenuity that leaves us hopeful. >> emmaemma's terrifiterrific alex, gave a big chunk of time

mode are moderna was on this morning. j&j's talking about one that's far ahead of glaxo, but they're both very good at vaccines and merck is really good at vaccines, but there's no doubt about it there's a stop at nothing manhattan project like approach now and it's welcomed because when glaxo started, i quote them when it started and they weren't that focused on it even though they have a great shingles vaccine, but now, holy cow, these two companies don't even like each other and they're working together it's all hands on deck working on this stuff. >> great to see european ingenuity. >> i should have said global economy. >> u.k. and france, it's fabulous to see. >> number one. >> exactly but any way, back to the vaccines, that particular sound bite, i'm looking forward to watching the whole interview,

clearly talked about the cap capacity to roll out manufacturing once one has been approved i don't want to have a down beat angle on this, but that bill gates interview still ands out to me that becky did last week because he highlighted how. >> harry: it is to get a vaccine it is that works anything from start to finish in less than 18 months because if you're going to vaccinate a whole population, ooempb % getting side effects is worse than the problem we have at the moment. so i guess production capability can get ramped up, but we're still going to get a vaccine in the first place. >> if you google sanofi, you'll come up with one that killed a lot of children and they're just incredibly difficult most companies don't make any money off them one of the reasons you don't hear a lot about them versus saying you're trying to cure lounge cancer. knowing there's a huge chunk of people who die every year, you want to go after it.

when i look at what j&j was doing, they did zika and ebola regener regeneron, 52-week high. they're all about trying to come up with a vaccine. regeneron, the stock's incredibly strong. moderna was all the way up today. these are the stocks that people are looking to there is a problem here and the vaccine is very difficult for both younger people to tolerate and older people to toll late rait because they're very different. that's why you have to do it at scale, you need multiple vaccines anyone who's buying stock today because they think the vaccine is around the corner that's a mistake it won't be. they are, there's just a lot, if you go watch the american experience on polio and you see how the march of dimes tarted and how long it took to cure it, i hope it isn't like that, but boy, these are just very rough things to make and amazon's involved, too, by the way. web services just doing trillions of different

calculations, which is what you need >> regeneron's the best performing stock in the market this year, up 40%. an acronym for the stay at home stock? >> we're working so hard it's a bit of scrabble we're thinking about amazon and walmart and netflix, but you u also have domino's i want people to go on my twitter feed, jimmy chill this time, and give me your best acronyms you can use more than one word this is from the guy who came up with faang and then fang i really need one. the stay at home, we don't have a lot of humor it's just all we do. >> that's the problem. >> we need, we need an acronym equal to what this market doing, which is obviously euphoric. >> we look forward to the full interview, mad money tonight at 6:00 p.m

programs t perhaps the acronym will be ready. boeing shares under pressure phil has the story for us. hi, phil >> these are not good looking numbers and it's easy to figure out what's going on. airlines around the world hemorrhaging cash. so you've got leasing companies that are parking laplanes, not ordering them. if they can get out of their orders, that's what they've done when you look at march orders from boeing, not a surprise we see negative 119 planes. yes, negative 119 planes for the fist quarter a negative 307 number. so they lost that money orders in the first quarter most of these are because of the 737 max. in march, they had 150 cancellations. combination of leasing companies and airlines for the first quarter, 325 cancellations. the backlog now stands at just over 4,000 maxings for comparison, it was up around 4700 a year ago. in interpreters of deliveries, yes, they have shut down all commercial airplane production work right now, but in the first quarter, they delivered 50 commercial airplanes about a third of what they did

last year. remember, they're not delivering any maxes right now. don't forget, boeing reports q1 earnings in b about two weeks and that will be really interesting. look, everybody knows the numbers are going to be terrible for the first quarter, but i think it's really the guidance, that's what people are going to be focused on. >> all right phil, thank you. up next, we will ask former world bank chief economist jo f joseph stiglitz once we'll recover quickly from the corovis is narucris boston light, america's oldest lighthouse, has stood strong through every dark hour and bright dawn our country has endured. it has seen the break in the clouds before anyone else. for the past 168 years, we've also stood by you, helping you weather storms like this one, to protect your loved ones. and we'll do it for 168 more.

helshbecause xfinity mobilehen ygives 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.

zblmpblt some news of proctor and gamble they are increase iing their dividend as we saw from j&j this morning. another dow component. increasing their dividend. it's note bable of course because it has been a stable company. they've produced household items and goods. like detergent, tide pods, their stock has outperformed this year it's up about 3% while the overall market is down 12% so investors looking for companies with stable and rising dividends look to companies like a p and g or j&j versus others right now

like in retail or energy, which are hurting more during this economic shutdown. which are scrapping their dividends to conserve cash >> yeah it's been a big point of discussion so far today. now members of the federal reserve weighing in today on the coronavirus outbreak and it's potential impact on the u.s. economy. charles evans cited the b possibility of more severe pan dem ic as the biggest risk for a deep and prolonged economic downturn while james bullard said testing is the key hurdle to holding back the economy. >> widespread testing of everybody in the economy would put an end to this crisis and would basically end this whole episode. can't get there right now, but this is cost iing up $25 millioa day. >> for more, let's bring in joseph stiglitz, former world bank chief economist also author of people, power and

profits. thanks so much for joining us. i mean i guess my first broad question in light of what we heard from mr. bullard, how d you rate the u.s. response and are we close to that point where you think we can reopen parts of the xi >> our response has been in some dimensions not up to the task in other dimensions, impressive the dollar amount. over $2 trillion is impressive but in the response in terms of what mr. bullard emphasized tests were way behind the ball prz in developing the tools to enable our doctors to deal with the masks. the protective gear, the ventilators. we're way behind

one of the interesting things that came out today, the imf came out with the world economic outlook. which was a disaster where the global economy looks liblg it's going. one of the things that's r very distinctive about the united states relative to the in gdp is is how bad our unemployment numbers are. other countries, u.k., denmark, have managed their way through an economic downturn as deep as the united states without anything like the soaring unemployment that we are confronting right now. >> your work and a lot of your recent work has been done on the topic of inequality. a lot of those job losses that we saw last month and that we

continue to see are concentrated in areas like hospitality and restaurants where the wage es are below that of the average american i'm wondering already, we're seeing this crisis exposing a lot of the inequality that we have in our society. just how much worse it could get. >> the coronavirus is particularly nasty to people who have preexisting conditions, diabetes, poor health in any way and america is distinguished in having more health inequality than any of the advanced companies. so as bad as our income equality is, it's worse and the pandemic is really exposing how bad it is so striking is that these are often people who are serving usz every day or delivering even

nurses in the hospital with very low pay. the people we depend on and yet we don't pay them well and we don't treat them well. >> so professor, are there going to be threats to capitalism when we come out the other side of this how should bailouts, if they arrive, be shaped to minimize the long-term threats to capi l capitalism that could arise? >> in 2000, i talked a lot about what i call an air socks capital. where the corporations, the bank stock, the upside and taxpayers got the downside there's a little bit of that here in a sense that many of the corporations getting help got into enormous tax break and in december of 2017

instead of putting that money away for a rainy day to create a capital buffer that would enable them to be more resilient to respond to a crisis like we're having, what they did is paid their ceos enormous salaries and are the rest of the money, they brought back shares. almost a trillion dollars in 2018 alone i, it's hard for me to feel very charitable towards these companies and yet now they're getting enormous help from the government even though some didn't even pay taxes in some recent years i think it's imperative the government take a significant upside or some way of getting the upside as the economy

recovers so that they just don't get the downside they're now experiencing >> we could have this conversation for an hour and it's been a hot topic on cnbc. thank you for joining us >> well thank you. >> up next, an exclusive interview with the ceo of carnival we'll ask him what the future of cruising will like like in the wake of the coronavirus. isn't just a department.

it's a voice on the other end of the phone. a note to say you're on our mind. a willingness to come to you. the world and how we interact with each other is changing. but that will never change who we are at lexus. now, more than ever, you and your needs come first. find out what service options are available in your area at lexus.com/people first

norwegian has lost more than half the value since the start of february. there were a number of serious coronavirus breakouts until the cdc issued a temporary ban on cruise travel on march 14th. joining me now is arnold donald.

thank you so much for the time it's good to see you we actually got that cdc no sail order extended so what is the status of your cruises are they all canceled until summer >> hi, good to be with you guys. our industry voluntarily and temporarily canceled the cruises even before there was a cdc no sail order that came out the first time and we originally had stopped took a pause in cruising through middle of april and the cdc updated their no sail order which was the earliest of three things, one of which include d 100 day postponement on sailing. so we'll see how that plays out. it could break earlier we'll just have to wait and see, but the number one priority for us is to be in compliance. we sail globally there's lots of jurisdictions

that are looking at social gathering and when social gathering is acceptable again and people feel that the risk is manageable then we can look seriously at cruising again. >> do you think though that cruising will be good afternoon by the way and thank you for joining us that cruising will be perhaps one of the last if not the last thing to be permitted and widely embraced again we're not just talk iing about small gatherings and crucial services like going back to school this is something that's probably quite far on the list of being permitted again >> we temporarily paused before restaurants, stadiums, before everybody and so you're right. cruises by definition are social gathering. whether it will be last, we'll have to see. we have historically had higher standards and health protocols and so on than most venues for

social gathering we often require medical records. we have temperature scanning we have doctors on board a lot of protocals now seen as advisable in place on cruise ships for a long time like hand sanitizers everywhere, washing of hands and deep cleaning of the ships, so those protocols have been in place for a long time and obviously at the early beginning of the virus transmission, we elevated those standards in line with w.h.o. and cdc and other fwliguidelines we'll just have to see where the world moves on this. the especially deemology is still being aligned around and if testing helps, what kind of testing and all that we'll obviously be in total compliance with whatever the particular jurisdictions have complying in order for people to feel comfortable cruising again. >> you guys have been through

health crisis before the noro viruses and others. how different is this one? the whole world glued do that diamond princess in early february that was quarantined in japan and the whole world sort of felt that hellish nightmare that people must have felt when they were on there, that has now claimed the live of ten people >> i think the world has reacted to this one obviously is appropriate, but it's truly global you mentioned noro virus, which is persistent and out there all the time it's actually much more difficult to kill on surfaces for example than coronavirus covid-19 is. but we manage that and manage it effectively as an industry but obviously, we've gone through ebola, strks ark, zikars

the difference with this one is community spread has been global you're at home right now and so it's very different the world has in literally and many cases, shut down in very, any type of social gathering and so we're just a part of that with the rest of travel and tourism and you know it's been devastating temporarily. but the long-term future will be great as long as we all and together and we cooperate with each other and work to get this thing under control. >> i guess what's also different is just how much of a pr nightmare this has really been i mean it's been a number of your ships that have been susceptible in the headlines and i just wonder how you're going to be able to convince the public you're not an incubator of infectious diseases forf. >> b to be honest with you, we've dealt with lot of various virus and other disease scares around the world we as we reported in our

memorandum as we sought to get additional cash we had the liquidity to withstabd stand a pause, we've had substantial bookings bookings for 2021 are strong there are a lot of people who understand cruising. they cruise a lot. they know what's in place there and they know when it comes to social gathering, as long as they're social gathering, that in many cases, that they're far less risk in a cruise environment than they would be in other environments. now with the particular virus, we have to let that evolve and let the experts tell us. the medical experts around the world. what's the best way to insure that we honor our highest responsibility and our top priorities, which are compliance, environmental protection and the health, safety and well being of guests. of the people and the places we go to and of course our crew >> arnold, i guess that's the point i think sara was getting at a vaccine's not going to be here

for 18 months, so this type of virus will be around for you to deal with for 18 months. the cdc, two phrases i've pulled off their website today, cruise ships markedly increase the risk of covid-19 disease outbreak also said cruise passengers are at increased risk of person to person spread of infectious diseases including covid-19 this is game changer, is it not? why are people going to want to get on a cruise ship until there's a vaccine? >> i would say that why would people go into a subway station? why would they go into an airport terminal >> why would they go into a restaurant why would they go -- and if they don't, then they wouldn't be cruising either. it's when we feel as a society that social gathering is, there's acceptable risk in social gathering if social gathering is not happening, then cruise is not happening because we absolutely are -- >> so you accept what the cdc

says there as correct >> i accept that we need to examine it carefully and we need to as it evolves and we learn more about it the cdc and others and we just need to do the right thing to protect the health and safety and well being of everyone you know the guests, places we go and the crew and we feel we've got lots of protocols in place we've dealt with other diseases and viruses. this one could be different and so we need to take a hard look at it and then together, we're always going to be in compliance, but to come up with the right thing to do is what i can tell you is that we have really high standards on cruise ships and dealing with any kind of health risk. as i said, you don't go to too many places where you have a medical record where there is temperature scanning there's lot of deep cleaning going on often and all the time. you know you mentioned noro

virus. the occurrence of that on cruise ships i've seen the data that suggests it's .007%. occurrence in land based activities is almost 6%. and so it's greatly reduced because we take enormous actions to ensure that we minimize or contain once it's identified and that's the history f o the cruise industry and we'll deal with this one in the appropriate way once there's clarity around it right now, there's debates on testing. tet does it help or doesn't it help there's debates on everything and when ever society is ready, you know, then we'll be ready and eventually, we will be so we're not predicting when just saying we'll be ready >> i know how much you put safety as a top priority what you're saying to us now and i totally believe every word of it >> thank you >> i also though there's not a

magic wand that anybody, whether it's a ceo or leader of a government could have waved to solve this crisis from day one that said, i wonder if you have any regrets look iing back on se of the ways this has been handled with the benefit of hindsight. given what we learned about the diamond princess that sara mentioned, which was back in january, that had over 700 cases at least and over ten deaths at least from what we know. the ruby princess still went to sea five and a half weeks later. i think it was 8th ofmarch it left its dock and that had at least 600 cases and 12 depth deaths do you regret letting that ship go to ea >> i would tell you this, that you make the decisions with information you have at the time you can say the same thing with any city once you saw a certain number of deaths, you regret not closing your restaurants sooner.

do you regret not restricting air travel sooner. do you regret et cetera. so if you know everything today you know, we're stay at home and shelter in place and if we had known that information at that time, that that was the best way to deal with this, then clearly we would have done that because as i said, we volunteered and to pause. we were not forced to pause. because once we had made an assessment and saw the dynamics that not just us, but the industry >> you don't think the diamond princess experienced in january did give you special early insight? >> you have to remember the diamond princess occurred like it did from the rest of the world. why didn't china give the rest of the world insight >> that's a fair point >> the point was it was hong kong based at the time came on the ship was not a a normal cruise they held the ship for weeks longer than the cruise would have occurred with people quarantined on board

people weren't sure at the time whether it was a super spreader and that all of those people had actually had the disease or virus transmitted before on board or whether it was transmitting on board. there's still debaten that if you talk to japanese ministry of health so there's a lot of unknowns in that so you could go to any point with anybody and say well you saw this, why didn't you do that the reality is you know we take information at hand. we are in compliance, we listen to the medical experts around the world. no medical experts at that time were saying you shouldn't cruise or anything like that. and then once we got to a point where we could see you know that it was not going to be even if we weren't transmitting on the ship, that you could risk having people be extended on the cruise well beyond the time they were on because of the protocols that were being put in place that if there was something identified and not necessarily even covid

positive, but a risk of covid positive even, that the hip would be delayed et set so, so we decided to pause and we and with everyone on this. we all want to get through this together and together we will and in the future is going to be travel is going to return and travel and when it does, we'll return with it social gathering at some point will return and when it does, people will want to cruise and we have lots of people booking now for '21. some even for '20 still and we'll have to see how this evolves. >> so in the meantime, you were left out of the $2 trillion relief package that congress passed because you're not incorporated in the united states is that fair and do you need to be considered in the next phase they're talking about right now of relief for businesses >> here's the reality. you know the travel and tourism industry as you guys know has been destroyed almost by the virus and reaction to it

for us, the way we look at it is we have 150,000 employees that are dependent on this business but beyond that, there are millions of people who are dependent on the cruise industry from baggage handlers to small shop openers to uber drivers to you know local restaurants and on and on and on and so one job on a cruise ship is about five to seven jobs in the rest of the economy. and so with that -- >> are you making the case they should >> i'm make iing the case that e should focus for example the alaskan season there are a whole, a number of people in alaska who are total ly dependent on tourism for their livelihood so we want to make certain the money gets to them okay and we would hope there would be ways that we can get support if we need it as time goes by so that we can help continue to

support those people and their families and create the jobs necessary. but in the end, we'll again, we have found a way to secure financing. it was costly. it was expensive but our job is to make sure the company can survive ooempb if b even if there's a really long pause, we want to make sure when we come out of this, this company is here to participate we did it in the best way possible to protect existing shareholder's value to the best degree we could and we feel we're a position and we're doing the things internally in terms of cash and capital management to ensure that we can with and a long run, the worst case scenario, so that the company is still around and healthy enough to be able to participate when travelers once again socially acceptable >> you tapped various liquidity measures quite impressively regardless of the price.

how long does that cover you for as things stand? >> we pointed out u that we think we can get through you know the end of the year with that. with no revenues coming in we're not saying that's going to happen, but we want to be prepared for the worst case and we're going to be working very hard seeking additional liquidity options while the u.s. may not have us in a stimulus package, we are global business. there's opportunities in germany and the u.k. and italy and other places you know for us to secure additional liquidity you know attractive enough for our shareholders that we can afford to do i and sustain it over time. so we're going to increase ou y liquidity to ensure we have a nice long runway if we need it we're hopeful with the rest of o the world that won't be needed but if it is, we'll be prepared. >> want to highlight a sliver of good news here

and that is are you really able to transform any of these cruise ships into hospitals or places that can help out in the fight against covid-19 are they safe? is the air quality safe to do this >> the air quality is absolutely safe if you look at first of all the answer is yes, we've made that offer. we made it some time ago we have a number of people around the world examining it as an option. you have to keep in mind a lot of hotels are shut down now, too, so there's probably land based options, but we're happy to do it we've made the offer we've had a number of inquiries. one thing that appears known about the virus is that the science i've heard and what i've seen from cdc and others is that it does not transmit well through hvac systems that that's not a surs of spread is what i've read and seen from cdc. so when you mention the air quality and stuff, the hvac

systems tend not to be a contributor to spread is what the science currently says about the virus. >> thank you so much for joining us tough time for your company and industry we appreciate you coming on to discuss it with us. >> thank you tough time, but we look forward to sooner rather than later, but when ever it's appropriate to give get you and you on a cruise again. >> thank you you're a good spokesman for your industry and we appreciate you coming on in the good times and the bad. >> something to be commended you've offered that to various health organizations breaking news on airlines. phil >> we have learned from multiple sources that the treasury department has reached an agreement in principle with the airlines that will be taking payroll grants remember this is the $25 billion set aside in the c.a.r.e.s. act. money that is being extended to the airlines so that they can

keep their payrolls in place at least through september 30th remember it's not 100% grant money that the airlines don't have to repay. 30% of it will come in the form of a low interest loan to the treasury department. we'll get a statement from the treasury department later earlyg and specific details from each airline probably in eight days and some kind of tomorrowal announcement and an agreement has been reached in principle between the treasury department and the airlines that are seeking this payroll grant from the treasury department. guys, back to you. >> yeah. we look forward to reading that fine print, phil thank you. >> still ahead, find out what it is like to live with coronavirus when we are joined by cnbc's own ylan mui who just recovered from the virus. we'll be right back. ever since we've gone mobile on the now platform,

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

amid all of the tragic news surrounding the coronavirus every day, we here are trying to highlight some of the positivity out there.

here are some of the latest examples for you bruce springsteen, bon jovi, whoopi goldberg and jon stewart will be in a jersey for jersey event raising money for the pandemic fund. a woman got her wish fulfilled after putting a sign on her door saying "i need more beer," and molson coors promptly sent 150 cans >> after battling the coronavirus, our washington reporter ylan mui has recovered and wrote about her experience and the questions that remain on the other side well worth having a look and adorable photos of your kids in there, as well, which is lovely to see, but most of all, the good news is to see that you're well and on the other side of it and it's a great read. my first question is how for someone that wasn't helpized by

it, how bad was it at its worst point? >> the way i described it is this is the sickest that i've been in my adult life and i have three small children as you can see in the pictures. they're petrie dishes and i get sick a lot and this one dug in and it just lingered and it didn't let go for two full weeks and sort of just slogging through that was really difficult and not only did i get sick, but my husband fell ill, as well and the kids all complained of symptoms and we were just one big, germy household slogging through this together >> well, we're glad you made it to the other side, ylan, of course, but your piece does highlight a number of serious questions that people like you and the thousands around the world are grappling with when it comes to recovery. when can you see people? what sort of testing do you

need are there answers to any of these questions? >> one thing that i realize as i sort of came out on the other side of this is that actually knowing that i had coronavirus was the most concrete piece of information that i had in this whole process. now it's unclear, there are conflicting guidelines of when i can stop isolation my doctor told me, 72 hours after my fever ended the county told me eight days after my fever ended the world health organization says two weeks after my symptoms resolved does that include my cough or does that mean my fever and all of these are questions that we will have to deal with on a very individual level and there are, the president, state governors, national officials who are going to have to be dealing with the big picture, but in order for recovery to truly happen and for the economy to re-open, individual households are going to have to make hundreds of tiny decisions on each of those kinds of questions and how soon we can get back to normal depends on

what all of us do and how quickly we feel confident in my own health and the health of my family and the ability that i have to go out and not infect other people >> ylan mui, thank you for sharing your experience with us. we're glad you're doing better and we look forward to the day when we can all see each other together in person >> definitely. >> up next, your wall street look ahead and more big banks set to report tomorrow which is keeping wilfred busy and he'll tell us key things every investor needs to watch after the break.

here's the thing about managing multiple clouds for your business. 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.

dad, i'm scared. ♪ it's only human to care for those we love. and also help light their way. it's why last year chevron invested over $10 billion to bring affordable, reliable, ever cleaner energy to america. ♪ got some more news on the airlines, let's get back to phil lebeau. >> sara, a statement from steven

mnuchin essentially saying that they're putting the cares act, and the payroll protection, and we're not going to read the entire statement, but it does list the ten major airlines that will be participating in the program, all of the usual suspects that you would imagine will be looking for some of that $25 billion. they still need to finalize those terms and disburse the money and no time line yet on when that will happen. >> phil, thanks so much for that we eagerly await as sara said ten minutes ago of what the underlying terms of what that entails. sara, as you mentioned, as well. banks continue to report tomorrow, citi, bank of america, goldman sachs, and the one point i should note is the slight positives i just saw and trading revenue saw assets under management rise despite markets collapsing i just wonder when that bodes better for certain players like

morgan stanley who have about 60% of revenues in either trading or wealth management, but we'll see how it shakes out and certainly some big declines today and wells fargo was down 4% >> it seems like also the lesson of the day from banks, wilfred look at the credit loan loss positions to see how bad the banks think it will be and whether they're guiding on more and the tone of what they say. >> exactly sara, thanks for that and we'll hand it over to brian sullivan ♪ ♪ thank you, wilfred and sara. welcome, everybody, to cnbc's "fast money" on another big tuesday with the market moving higher we have a great investment committee lined up for you on this tuesday night, the names that you know and the names that you trust. there they are, guy, tim, steve and dan nathan, as well on a day when the dow went up 2.4%, 558 points, but that was not the story today. today instead it was all about big-cap technology the nasdaq kind of picking up where it left off about six weeks ago. look at that, the na