turmoil" includes a special panel of financial advisers 7:30 eastern hosted by josh brown tweet your questions to cnbc using #cnbc adviser. good to have you guys with us and howard marx on today dow barely holding on to 24,000. kelly picks up our coverage right now. good stuff thank you, scott hi, everybody. stocks are mixed today an off the lows investors remain at odds of an economic recovery and oil weighing big time on sentiment dow down 243 look at the nasdaq which has now turned positive. that's been a theme of several weeks. i mentioned oil. plunging to its lowest level since futures contracts introduced in 1983 may contract just above $4, just

above $4 the comparison of that versus the other contract which is are over the $20 mark. so that gives you a sense both of the extreme state of the markets because of this may expiration but also what's going on with june an the contracts further out and more on that in a moment it all comes as we brace for a big earnings week. 20% of the s&p set to report 80% of companies reporting have suspended the guidance 20% have suspended dividends and another 60% suspended buybacks for more on the selloff, let's get to bob pisani joining with us the state of play hi, bob. >> hello, kelly. the good news is we are well off the lows we had an ugly open particularly with energy, industrials, material stocks. 30 points off the lows nice recovery here and had governor cuomo talking about less hospitalizations. that helped a little bit in terms of sectors, energy's just been a mess all day

chevron, exxon kelly mentioned that may contract expiring tomorrow etfs own the front month future contracts and can't take procession and they have to sell and nobody there to buy it essentially. that's why we see the may contract collapse around $4, $5, $6, $7 reits, staples normally do well. they're not doing anything either today a bright little piece of news, finally the banks are turning around an ugly week last week as earnings season started. back to you. >> bob, thanks now the s&p over the past month is now up close to 25% it's solidly bounced off the bottom with 22 million jobs lost in the last month, potentially millions more from retailers and

restaurants, how can the market be so confident that in just three to six month's time the economy will roar back into action i'm joined by two guests bill, what would you say >> well, the last time that stocks like amazon and netflix were going wild while oil was getting tortured into the ground was in 1999. it was late in the dotcom bubble and i would say that the way the misery stocks are being bought and being touted is a definite sell signal. >> what are the misery stocks? what do you mean by that >> amazon, clorox, proctor & gamble, netflix, peloton you name it. the businesses that are benefiting i heard somebody on the prior show recommend costco.

i mean, is costco ever going to have a better month than the last 30 days in the history of the company? >> you have liked costco. >> no, no, no, no. 35 times earnings what you have to pay to buy that stock. >> right. >> the urge to buy the misery trade in here looking 60 days out, then the opposite side of that is things have gotten bombed out and there's virtually no hope for numerous areas including energier and where the opportunities are. >> in other words, bill, you are sort of bigger theme of millennial household formation, watching movies, raising kids, going to the grocery stores. is that delayed and changed with the valuations if costco was attractive before do you have to throw it out of the window because of the extreme trading environment we are in >> that's a fantastic question in 1972, coke and disney were trading at 60 and 80 times

earnings they're fantastic companies that did fantastically well but they got overly popular and were terrible investments for the following ten years. at the bottom in 1974, warren buffett said, and i quote, i feel like an oversexed man in an harem. buying small and medium-cap stocks that were total bargains because of the decline but stocks weren't good for another eight or nine years after that >> okay. >> and that's -- the problem is what was already cheap has gone way down an what was already expensive has got a bid. >> mark, would you be buying the bombed out sectors like energy not financials is not quite that bad but not great and do we have to wait multiple years for the names to really start to perform? >> i don't think so. at the same time, i think i would be cautious with regard to

nibbling at the bombed out sectors. there's legend mat reasons why they underperformed as badly as they have. i happen to think that the massive global stimulus that represents about 20% of the world's gdp that's unleashed economically fiscally and monetarily over 12 to 18 months or so in concert with a curing of the coronavirus or health care policies and mitigation efforts lead to an improved outlook 12 months hence and i think particularly in the industrial sectors, maybe certainly within the tech sectors, look kind of interesting as a bar bell to the consumer staples and health care sectors which i think are still going to see efforts on part of investors to continue to look for those things that are most predictable in a period that has tremendous uncertainty associated with it. >> the disconnect of the two of you is time horizon. mark, looking for things to work over the next six to 12 months

probably won't work on 6 to 12 years going back to what buffettt was doing in 1974 let's ask you about the recovery, mark, that anybody would dare to talk about what's it going to look like how much is the help that we have already gotten really going to lead to one the stock market seems to signal a v-shaped rebound is that right? do we need more action to make that seem realistic? >> good questions all, kelly obviously the stock market is a discounting mechanism. typically begins to rally in earnest four months before the end of a recession and suggest to see better economic data probably coming as soon as august of this year and that seems a little unrealistic to me given the still very strict mitigation efforts even though some states adopt loosening of the protocols here going forward and i think therefore we are going to see kind of a very nuanced recovery some industries due to massive

pent-up demand have v-shaped recoveries and others will be more l-shaped in nature and kind of aggregating those i have a "u" to come out with a big bump i think initially but at the same time a more glacial trajectory into the better -- back half of this year and much more robust 2021. >> bill, what if it's an ice age for a little while >> well, investing is a marathon you are right. the most success is had in durations of five to ten years, not five months and when you get in a panic and you get in a huge -- the fastest 36% decline in my career, you know, you just want to give up on the five to ten-year stuff and like to go back to the other point about the amount of money that's thrown at this so here's a very interesting thing. that money could very possibly end up being very inflationary

and the sectors most bombed out right now are exactly the industries that historically have benefited from inflationary periods and in 1970s from 3% to 11 3rs inflation, the most popular group at the end of the decade oil stocks. 12 of the 20 largest cap companies in the fortune 500 in 1981 oil stocks. real property becomes extremely value in an inflationary environment because they don't make more of it. right? for example, the companies that own the malls, whether you have a jcpenney store on the property, it is fantastic property in los angeles or phoenix or very attractive metropolitan areas of the united states and property will have value some point especially if we get in an inflationary period. >> bill, i want to have a larger discussion next time but if people don't believe in the inflationary outcome, would you say to invest in energy stocks

if they think deflation is more likely should you own energy >> oil is automobile cocaine. >> you make me think that through? you have to explain it more for me so cheaper gasoline is better for car driving and that's about as far as i can take the analogy on my own. all right. that sounds like an agreement. bill, thanks bill, mark that's what happens when i say real quick. let's turn to the breath taking collapse of crude today oil prices on the track for worst day ever as demand craters and may contract set to expire brian sullivan is here we were just talking about crude and whether to bet on energy but can you explain to people what in the world is going on with today's action? are we going negative here by the close? >> well, we could! we certainly could but listen i get the contract is a scary number five bucks

it is a big headline and it is real and we should pay attention to it. but not entirely as we were talking about the last couple of days, starting last week, the breakaway between the current contract, may, and the june and july contracts as well as brent crude which is traded overseas is doing this. why? okay look at that that's weird okay let me explain, try to explain what's going on. that may -- bob pisani kind of touched on it. that may contract is for physical delivery in may okay literally i'm going to give you a barrel of oil or a super tanker that contract expires tomorrow so unless you can find a place to deliver oil, you know, in may and full storage the contract effectively has very little if any value. in fact, that's to your point where the cme came out with a headline that that contract

could indeed turn negative effectively this is where the paper market, the commodities market, we are trading digital currency back and forth, kelly, and the physical delivery of oil have to converge there's no place to deliver it in oklahoma or parts of houston. everything's full so the paper market unless you got some crazy oil contract death wish you're not going to buy that contract also remember about 25% of that is owned by the u.s.o. oil etf i don't know who could have talked about etfs over the last year anyway, that's why we see a different story. look at brent crude as a better indicator, that's global and some storage around the world but cushing, oklahoma, is a small town with probably more oil tanks than people and it is filled. >> super contango.

you have to store on the tankers? trying to work on the energy knowledge. >> sounds like a dance, doesn't it do the super contango. that just means the price of the future is much higher than now and so you're paid to store something away it is like i have a candy bar for a dollar you're willing to three bucks for it next month. i'll sell it to you for $3 down the road until dom chu eats it first and that's what happened to the oil market. not dom chu. i just got a text from an oil trader saying thank you for explaining the contract to people y you're welcome. >> thank you it's all certainly no laughing matter in texas. the collapse in oil is having a huge impack. in houston alone, over 250,000 in the oil sector. for more let's bring in sergio chappa who's been tracking the

economic toll the collapse is having on the economy. what do we know? >> so here in houston we have had about nearly 250,000, quarter of a million unemployment claims. what we're on track to see by the end of april is 10% unemployment figures here in houston. that's double digits those type of figures haven't been seen here in houston since 1980s so definitely the situation is bringing up memories of the 1980s oil bust and the affect here in houston you know, a number of companies issued guidance on layoffs seems so far the hardest hit are oil field service companies and oil field equipment manufacturers. they're taking the brunt of those layoffs right now. >> the houston economy is more diversified, health care is a big part, but comparing to the

1980s collapse, no one wants to hear that. the tricky thing is yes they're hit by the same coronavirus that other sectors are hit by but what if the price of crude doesn't come back? how do we know in terms of it being a temporary problem or something more lasting >> right what i've been told is that oil and gas, you know, even though the houston economy is diversified, oil and gas is about one third of the economy here there's no ways around that. but what other people told me that the oil and gas industry is actually better set up this time around at this downturn than the 1986 or 2016 you know it is lean and it is mean and it's more efficient than before. and some companies are in stronger positions than others with enough cash and liquidity to ride out the storms others are not

ones with weak edge books and ones with high debt. so we're in the middle of the bank restructuring season right now. we are going to get guidance on that when we see how they do in the refinancing season and then also earnings season. we are seeing a lot of guidance from there a lot of pain in ofs. >> yeah. i've been watching this from till la, as well 40 million barrels headed to the gulf one thing after another after another. keep us posted, sergio we appreciate it. >> you got it. coming up, the coronavirus pandemic is shifting the dynamics of retail and will likely leave a legacy of fewer department stores. where the cash crunch is worst and what's next. plus, protesters are gathering across the country demanding cities reopen the economies. we'll speak with the governor of new hampshire about the protest and plans to move forward, after this but inside...

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welcome back a lot will be different about america following the pandemic, especially true in the retail world where many predict to see a lot fewer department stores, many names already struggling prior to the crisis and will emerge weaker. macy's, nordstrom, kohl's and jcpenney come up as the hardest hit. so what will the retail landscape look like after the

crisis let's bring in retail reporter lauren thomas and jan niffen ceo. it's great to see you both lauren, let's start with you you know, it's dangerous in the media obviously to speculate about bankruptcies but how close are we for some of the household names? >> sure. well, thank you for having me on, kelly. appreciate it. but certainly,the clock is ticking for some of these department store chains faster than others. i think first and foremost neiman-marcus could file for bankruptcy as soon as this week. so the -- less time to spare i guess there and jcpenney, as well, is on top of the list i think both of these companies missed interest payments on debt last week. which was kind of put them into this grave period of 30 days where there's not much time to come up with money or else they could ultly slide into bankruptcy so those top of the list and

macy's, trying to come up with cash, as well. i think one department store chain, former department store ceo put it to me, that's when he said this is a liquidity crisis of enormous consequences and really going to boil down to liquidity, cash is flowing when i talked to bankers there's money to certainly funnel into some of these retailers but it's going to be a matter of who is worst saving >> jan, i have seen you and others talking about the future for jcpenney and niemann after missing the interest payments. what are we talking about? reorganization liquidation? you said no one can go into the stores. >> i expected niemann to file over the weekend and there's a possibility they will. jcpenney may or may not file but if they don't file they have about 850 stores they probably need more like 500 stores so if they do an

organization they probably have 500 stores for starters and see a big store closing program anyways. niemann made it to 2019. but i still think somebody would buy the intellectual property. we know that the equipment worth a lot of money and obviously go to somebody that would continue in business. but a lot of retail will go away and even if macy's doesn't have to file i don't think they will, i don't think nordstrom's files or macy's files but macy's already told us to close 150 stores my guest s is post-covid 175. there's probably a 10% or 20% store closing program at a place like nordstrom's on the other side of this and they have 123 full line stores and really well positioned in the malls but they can't really want the keep all of those stores. and so we are going to see that across the industry. probably 10% of the stores,

maybe 20% inside the malls will close. >> lauren, crazy thing about this is process of constructive destruction with the winners and losers and in many ways that's a healthy way. but in other words it is not going out and somebody else excited to come in maybe there will be. there have been a lot of companies opening brick and mortar stores lately but what happens to fill that void? >> oh, i think on many levels it is almost ironic because for the longest time, you know, the real estate industry touting we are bringing in gyms and theaters and these experiment shl places to drive traffic and that was filling the space of apparel as that was kind of falling out of fashion and now, you know, we are thrown into this world where i think many of us so hesitant to return to those things and like you said not many businesses necessarily looking to open right now so certainly as that space, as the department stores some of them will close i

think it will take time to repurpose that, whether it's an amazon distribution center, i think maybe that's something to look to versus even a movie theater at this point just as kind of an entire entertainment industry has been flipped on the head. >> no. such a good point. have to continue the conversation about how to reimagine the mall and what that means for everybody left holding the bag. thank you. appreciate it. a tough week for those retailers. jan and lauren, thank you. a quick check on oil here. the may contract look at the prices we just briefly went below $3 a barrel, $3.23. an 83% drop in the session we'll continue to explore the difference between the may expiration, june contracts which have prices in the 20s throughout this show and next hour into the oil close where it's possible as we have just heard from regulator the oil price could go negative, whether

that happens we have about a little over an hour to determine. coming up, to swipe or not to swipe debating the credit card stocks with a third of the revenue on the line should you bet on the rally when the economy makes a comeback plus -- location, location, location house prices expected to take a hit. we'll have the details ahead "the exchae"s ckn o nus.ng iba itw it didn't take us long to realize ... ...we weren't in the car business. at lexus, we were in the people business. we needed to be helpful . . . . . . respectful . . . and compassionate. to treat people like guests. it's what we all signed up for. and now when people need this most, we will do what we've always done. take care of people first. the rest will follow. and sometimes, you can find yourself heading in a new direction.

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welcome back over to sue herera for the headlines this hour. >> thank you very much good afternoon, everyone here's what we know. the head of the world health organization is warning that the worst of the pandemic is still ahead of us. even as many countries begin to ease their virus-related restrictions and did not explain the assessment but the virus is expected to spread across africa where many health care systems are less developed. dozens of protesters

gathered at pennsylvania's capitol to pressure the governor to reopen by may 1st protesters defied mitigation guidelines by standing close together and without face coverings. facebook removed pages promoting anti-shutdown protests in california, nebraska and new jersey after consulting with officials in those states because the gatherings would violate social distancing rules. and 800,000 portuguese students under lockdown will tune in to school with the televisions. teachers will deliver 30-minute pre-recorded lessons on the broadcast station. you can get more on the coronavirus by going to cnbc.com we are getting creative with the way we educate the kids, kell. >> it is tv. that's one way to get them. >> there you go. >> watch school. anything on tv these days. thank you very much. well, it is no surprise the coronavirus has led to a huge drop in consumer spending which has some questioning the

strength of the visa and mastercard both powerhouses of the past decade up 7, 8, 9, 10 times over and now volumes are in jeopardy. for more i'm joined by two guests in a nutshell, lisa, you're bullish on the names chris, you are more bearish. i would love to hear the case, lisa we have heard people on the show even last week talking about how they don't want exposure to the names anymore. is the era over? >> no. of course definitely while consumer spending is depressed, credit card volumes will be down but the silver lining of the current crisis is that it drives acceleration in a lot of the underlying cash displacement trends that drive the sector people don't want to touch the cash the w.h.o. has even telling people not to touch cash if they

can avoid it contactless, online buying, all of these secular drivers are only accelerated now and so when we come out of this later this year, next year, actually, the growth rates will be accelerated for visa and mastercard and the sector. >> i swear by apple pay these days, built off the card you have a buy on visa $200 price target. chris, your visa target is 170 mastercard at 240. you have been underweight or negative on the names since at least 2017 a valuation story or a kind of a business transformation? >> well, in prior years a bit more of a valuation story and i thought more risks in the stocks and to the valuations some from regulatory and some from just the mix of business. right now the biggest concern for me for visa and mastercard is a third of the net revenue from cross border activity and that's part of the economy

i'm not sure to recover in the next few months or the next few quarters when you think of what will happen to international travel i think it might not recover until 2021 or maybe even after that that's my biggest concern for a very large chunk of their revenues. >> why have you been neutral on them i guess my question is, yes, a third of the revenues but is their story otherwise intact, chris, if you put that aside that's a big caveat. >> i think most of the other part of the story is intact. consumers will continue to use the debit cards and that's not just the united states but globally credit card spending probably see more of a hit, too, did discretionary spend. i agree with lisa's point that there's parts of visa and mastercard to benefit to the shift of contactless and to my

mind, contactless, e-commerce shifting wit an online payment and net-net a wash for visa and mastercard. >> lisa, why aren't you more concerned of a hit to cross border revenue there >> it is a third of overall revenues cross border but only about 20 of that 35 or so is actually travel related. the rest is e-commerce and e-commerce we are seeing the numbers is going through the roof as a result of people being home so but no question it is true that 20% or so of revenues in the cross border travel related spending is taking a hit it doesn't actually go to zero there's expats that are still in other countries using the cards. land borders are still open and that piece depressed for at least a few quarters. >> do you think the stocks even being bullish on them can be powerhouses or a one-time

phenomenon >> oh no i mean, we -- global card penetration is only at about 45% right now. ten years ago it was at 28 and so we're actually still in the steep part of that s-curve we have five to ten more years to go. ifld definitely underwrite the stocks for another decade of the 20% earnings growth out of them. >> fascinating that was a great discussion. thank you both. >> thank you. >> lisa and chris, on visa and mastercard a. with cities shut down and unemployment rising many are starting to make a big push to reopen the economy but, of course, it is not as easy as turning a key. the governor of new hampshire has a look at what's ahead for his state as protesters hit the street. the hunt for a test, from south korea to california to alabama, we'll look at a state's journey in this hunt for the important tests, "the exchange" is back after this short break. before we go, watching oil closely. this plunge is almost complete

the may contract which is expiring tomorrow is now at $1.45. we have never seen anything like this with maybe just one exception in history we'll continue to check on the forward contracts. the close happens in an hour stay with us every financial plan needs a cfp® professional -- confident financial plans, calming financial plans, complete financial plans. they're all possible with a cfp® professional. find yours at letsmakeaplan.org.

they're all possible with a cfp® professional. featuring the emmy award-winning voice remote. all the apps you love, including netflix, prime video, youtube and hulu. and the most 4k content. the best entertainment experience all in one place. welcome back to "the exchange." here's the carnage across the energy complex right now may wti crude, because no one wants to take physical delivery is plunging before the expiration tomorrow at $1.20, 93% drop there's a look at june, forward contract, telling you more about the actual economic price is right now. just under $22 a barrel. and continuing to follow this

for you. dom chu has a check on the market and the movers. >> a check on how things stand for the major stock indices. lower on the day off the worst of the session you can see there off. s&p off by 25. nasdaq off just marginally now the s&p off by 45 at the low the dow off 507. the lone green spot is health care up. posting fractional gains you can see outperformers. the losses coming in energy as you mentioned the oil prices and real estate and utilities. a few stocks to watch. you got shares of boeing right now down just about -- call it 5% here. the biggest drag on the dow industrials. citi downgrading to neutral from a buy. netflix on the rise and hovering near record high territory and

then shake shack up on the day after it said it's returning a $10 million small business loan it got from the government after raising $150 million in an equity offering last week so, kelly, the three movers to watch on the day >> dom, thank you very much. meantime, americans are starting to voice their anger over the forced lockdowns. hundreds of protesters demonstrated outside the new hampshire state house this weekend, calling on the government to reopen the economy. joining me is governor chris su sue n sununu of new hampshire. why stay closed? >> what we have had to do as many states have is take serious action, stay-at-home order, closing physical structures of school and we are five or six weeks into this and looking to bring stakeholders in and designing guidelines to get a lot of these businesses going.

and again, you have to be step-wise of it. probably some won't get going for quite sometime hospitals, for example we are going to look to get elective surgeries and procedures going because just in new hampshire hospitals losing $150 million to $200 million in this month and so again allowing them to have the ppe, the testing capacity, segregate covid populations an get the procedures going back forward is a great first step and probably one of the first areas to go after. it is about setting the guidelines and where we think they need to be for public health and moving forward. >> a thing everybody says is kind of contingent on is testing. the president said the states need to do more. all companies trying to figure out how to do testing but is that the answer? take a business like ours. you can test everybody one day go home, go to the grocery

store. will you test them the next day? how else do we try to think about gradually reopening the economies? >> testing is a huge part of the equation it isn't just about one person one test and sending them on the way and saying good-bye and good luck it is having enough to go after the high-risk sectors. hospitals, high risk areas, social services. folks going in and working one on one with kids or families with issues of child abuse or domestic violence or whatever it might be prevention services. they require one on one services and want to let people know if and when they may come in contact with somebody to test them won't be quarantined for 14 days that is a giant work force issue to be sure the antibody test which is starting to come online. the fda i believe approved four and will start coming out basically going to identify those who have had covid, maybe didn't know it and can get back into the workplace with certainty and not carrying the

virus home. >> we know there's false positives like we were talking about this morning let me ask you about the sequence and the timing so tricky and whether we have to just take the fall as the blank slate to begin you can't necessarily have people starting to go back to work until the schools or a child care are open. making those decisions obviously is a really tough call because they're dense environments with a lot of people. do you try to do things all at once or do you -- do you stagger them as we all see -- the computer trying to reconnect there. that was governor chris sununu of new hampshire sorry we lost him at the end of that shot. hello to my family in lisbon, new hampshire, that's watching. the market story of the day which is crude oil multiple contracts one for each month. the may contract is collapsing it's below $2 a barrel brian sullivan rejoins us with

john kilduff rejoins us. mid land, you know, positive maybe around $8. cushing positive this is getting -- people say, hey, kelly, look, the may expiration i get that there's something historic taking place here. >> i just tweeted out that i think it was 1961 or '62 wilt chamberlain scored 100 points in a basketball game and the 100 points doesn't matter if he scored 99 it is still amazing but you wanted to tune in to see if he scored the 100 because it was kind of a round number thing. right? i feel like the may contract, that's what's happening right now. this could go negative, kelly. it could rebound tomorrow by the way. the may contract will still contract but not the front month contract it could soar tomorrow there are a lot of interesting things happening you have the uso etf maybe long pushes there.

traders to push it down. might have the guy's point, a hedge fund blowing up needs to sell into this the value of a physical delivery of a barrel of crude oil is let's call it zero the fund and the may contract may not be yet at zero, kelly, but really, to my point is there a difference between a $1.11 and zero >> exactly. >> the metal in the barrel costs more than $1.11. buy it for the barrel so we can go over niagara falls together with this is over. >> john, what do you think the viewers need to know about the trading activity what would you say is important about it and what can we dismiss? >> i think people have to understand one thing of futures contracts, particularly commodity future contracts there is a physical delivery component keeping the pricing honest if you will what this collapse in the may contract is reflecting is

horrible super glutted physical market conditions. you can't give this stuff away as brian was just basically saying just to put it in perspective, part of the crush today there's a private report out saying inventories at the cushing, oklahoma, delivery hub for the futures hub grew by 10% last week they're at 61 million barrels now up against an 85 million barrel capacity. so on that math, you can see we get to full up in a matter of weeks so that's what's helping to push prices lower the supply has to get cleared from lesser production or some other hook or by crook to get it out of the system or to get refineries to step up and produce more themselves. that's the only way to clear this. >> again, the sort of further out contracts show crude in the low 20s which compared with two bucks isn't cataclysmic.

does $2 tell us about what like what kilduff said, that's a pretty shocking indictment >> i've heard of two buck chuck an apparently people also consuming barrels of at this time listen let's look at the june contracts. let's look at the july contracts. $22.14 $27 for july brept crude. those are the contracts for the price of oil going forward you want to now pay more attention to this may thing is kind of to john's point it is going to expire tomorrow it's about a physical delivery issue which is still a big deal. no one's saying it is not but be clear. look at the 20s. this is going back and forth all daying on this if that june contract starts to roll over and fall like may has, now that ease pointing to a larger storage issue this is not maybe a one-month phenomenon this could be a multi-month

phenomenon and why it matters, kelly, is that it could signal that the oil market or players in it are predicting a longer and steeper economic slow down than people expect watch the june contract. if it falls to $15 or 12 bucks you have a macro economic story. the may contract is a thing, kind of a thing. >> i understand. john, the tricky thing of oil is unlike retail where if you have a bad spring selling season, you start fresh for fall and can't do that with oil a barrel is a barrel so it -- every barrel that the demand disappears for piles up and then is an overhang on the market i don't imagine there's hope that people driving benefit that much from the low prices how much are we even talking about in terms of gasoline how much does that even matter >> we are going to -- that's the first step out of this abyss but i'll tell you, too, kelly,

the structure, the way it is -- it is unfortunate the back month contracts where they are because it encouraging more storage of oil, more hoarding of it to put it in and lock in what today is a $20 a barrel profit just about. minus storage and other factors. >> wow. >> so you know, this is -- >> kelly, let me jump in. >> great point this will encourage hoarding go ahead. >> yeah. well, listen one thing to -- listen this is obviously history in the making we are watching history. this is unprecedented. a long time ago in a life far, far away i was a commodities trader days like this just didn't exist. but to john's point, taking physical delivery which i used to trade and take physical delivery of commodities, you need a shipping port, load stuff, a place to put it a different animal so that's one of the reasons you are seeing this.

look at c.o.p. con cophillips the stock is higher. some oil stocks down a percent or two but the oil equities are not getting crushed today and i think that's one of the things that we need to look at. it's not all doom and gloom out there today. >> great point we'll leave it there brian, john, thank you both. >> thank you. stay tuned next hour not only do we have the close at half past but goldman sachs head of global commodities jeff currie joins us to discuss the plunge, what happens next. in the meantime, montgomery, alabama, home to hyun die's only north american factory and whether the town had the fist case of coronavirus in mid-march the mayor called on the automaker for help ylan muoy has the story. >> hyundai is a first call that the mayor reid made. he was on the hunt for test kits and the story shows how hard it can be to get them >> we did that because we

thought that there would be a big demand on the federal government and we were concerned about being able to get the amount of test kit that is we would need. >> hyundai operates a $2.1 billion plant in montgomery. about 4,000 people work there and the mayor hoping that hyundai could help because it was battling the coronavirus in the headquarters in south korea and appeared to be winning. >> one of the things we learned from the parent company in seoul, south korea, is testing is universally seen as a best practice to address this issue so we believe that testing was the best line of defense the best first line of defense >> reporter: so hyundai is committed to providing 10,000 tests for montgomery, partnered with another south korean company to distribute them from california to alabama. this could be a game changer for montgomery, representing five time it is number of people

tested so far. the city has 226 confirmed cases of the virus as of this morning. three people have died but the mayor is worried the numbers aren't accurate. >> in terms of test kits, we just don't have enough of thos i believe that's leading to a larmingly low number of confirmed cases that we have in the community. >> the good news is the first batch of test kits have arrived in alabama the bad news is that the city is still waiting on emergency fda prooifl to use those kits. a month after the phone call, the saga is still not over >> there's so much to unpack in that story thank you for bringing it to us. coming up, from tax relief to testing to equipment. truck owners say they need help and th nd eyeeit fast. what's at stake if they don't get it we'll explore that next.

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welcome back the price of wti just broke below a dollar barrel. we'll talk more next hour about what's going on here this 95% plunge in a day is shocking to see. we'll see it turns negative. it may be what might be more of the true economical price or market price the june contract is trading in $22 a barrel range july is trading at 27. america's truckers are issuing mayday calling warning they are driving without adequate protection.

if they are sidelines, the nation's supply smchain , inclun grocery could be too president trump highlighted the importance of the truck drivers. >> truck drivers form the life blood of our economy for days and sometimes weeks at end, truck drivers leave their homes and deliver supplies that american families need and count on during this national crisis and at all other times >> joining me now is todd spencer. he is president of the owner, operate independent drivers association. >> you have a number of things you say could help including things like waiving the heavy vehicle use tax. get more funding and so forth. do you feel you have been lecft out of the relief efforts.

>> right now the programs they created for small businesses really miss them complete my at the same time, while you mention lower fuel prices just a second ago, what's happened with drivers right now is the rates that they receive for hauling the goods are pretty much been cut in half. >> you can say a trucking is in his own environment but for the most par it's just them in cab

we're certain there's going to be more than exposed and quite likely have the virus. realistic truckers are first responders our whole economy runs on trucks everything we need, the vital things in the stores they only get there by truck even if nothing was wrong, in three days those stores are empty. they really are critical they go everywhere they go into the hot zones we think there ought to be greater efforts made to provide ppe to them because we really want to keep them on the job and we don't want to get them infected >> what are your top priorities in a nutshell? >> right now i'd have to say testing is vital to all of us. if our folks are expoedsed, some will get it. if they test positive then they need to quarantine we don't thinkst the real itselfic the only option they have to to quarantine in the

truck. we think the be, b ppe ought toe made available to them that's been a challenge. it's good speaking with you. we thank you for everything that you're doing >> thank you, kelly. >> todd spencer is the president of the owner, operator, independent drivers association. they say they need help big time too. it's unprecedented this collapse this is a dramatic exaggeration of what's really going on in terms of the economic price. when we continue, our breaking news coverage of the markets continue we're going to be joined by goldman's head of commodities jeff currie. stay with us

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good afternoon and welcome back they continue right now on power lunch. welcome. welcome to my kitchen. fwl glad to have you at home that's what we're following. something we never, ever seen before worse day in history hitting, believe it or not, just a penny on the may contract. that's a record lowas that contract gets set to expire. jeff currie will be here to explain what this means. how alarmed you should be, if you should