bit of money now we're going to be behind the eight ball again. >> all right, john i have a feeling we'll be talk toug again soon. what an hour it's been, kelly. over to you purcha. >> another one to tell my grandchildren about. thanks for tuning in everybody closing bell continues. >> thank you so much for that. welcome to closing bell, i'm wilfred frost. energy in particular in the spotlight, in free fall right now. let's have a look at what is driving the action the cost of wti's may contrast went negative as ever as global demand and storage option evaporate. still no deal for small business, beginning a rescue package for state governments and nasdaq outperforming, certain big tech names like amazon and netflix, which by the way reports earnings tomorrow. down 1.7% on the s&p, sara.

>> 555 dow points. ahead on today's show, we're going to dive into this plunge in oil prices, what it means for the u.s. economy and jobs to the financial losses reverberating through the market right now plus we will speak with illinois governor j.b. pritzker and former commerce secretary penny pritzker, his sister, about illinois's battle against the coronavirus and the race for more protective gear and testing. let's focus in on the big stories we're watching with 58 minutes left of trading. brian sul vab focusing on crude oil collapse, mike santoli will tie that in with broad movements we're seeing today latest on the snag on government funding. brian, first to you on this unprecedented move in oil. a day for the history books. >> it is a day for the history books. ending a futures contract in negative $30 or what it was. sara and wolf, it doesn't make sense as i talked about in

"power lunch" as well. we started the day around $10. we continued to fall now negative $30 these are contracts. negative $26 that is not some kind of graphics error on cnbc's part. that is a negative price it's just insane we theoretically lost 325% of the cost of oil. i know it doesn't make a lot of sense. there's a lot of very smart people with a lot of smart questions right now but the most basic one is how do you go negative go negative because in a futures contract you are obligated to deliver something to someone i agree to give you this at a certain point in time. if i can't sell it and you want the stuff, i've got to find a place to put it which means i'm going to have to pay a lot of money. by the way, if there's nowhere to put it at any amount of money you have to sell it at any price you can. will fred and sara, leveraged

etf issue or if it's all the above or just people, guys, that were so desperate to sell at any price that they were willing to do that. of course we're trying to dig in but the price of oil, an historic day by the way, we've got one more i today. that may contract expires at 2:30 eastern time tomorrow we've got one more day to live with that may contract by the way, look at june, 21.37, a $50 spread that's why i said it doesn't make any sense. >> i mean, dropping soord has, brian. obviously a huge headline and big deal i'm trying to wrap my arms around how consequential this might be how do these oil companies use the futures market in other words, does this price matter when it comes to buying and selling oil and what the companies are basing it off of >> there's a lot there i'll try to answer it in the generous time you guys have allotted me.

yes, it matters to a point the may contract doesn't matter that much. i call it a side show because it was a serious deal today and make people will get absolutely bludgeoned by this price the june price is what i would call the real price of oil right now. 21.43, 27.23 for july, 29.37 for august that's the real price of crude negative that is futures traders having to get out of positions at any cost because they don't want to take delivery. i used to trade commodities before tv and a life far away. i had to deliver commodities it's a pain in the whatever. if there's no storage, literally nowhere to put it, you have to pay what you have to to get out of it. i'll say this to wilfred

i got a tech, i hope somebody pays out our hedges. banks take the other side, hedge out as an oil company against lower prices guess what, we have negative prices you wonder if there's going to be a bunch of banks not just on the debt, you made this a small percentage of their loan book but they are going to have to pay out these hedges, i think, at some incident po' your negative 30 on $58 hedge. >> i mean, listen, crucial point, brian on one point loans to actual oil and gas companies in the industry on the other, the more immediate point, as you're rightly saying, financial instruments they might create for clients, whether that's financial market clients or actual oil industry clients to allow them to hedge on top of that, your point there's probably a couple of hedge funds out there part of the cause for this enormous drop to negative territory for this may contract if banks have extended some kind of leverage and loans to those

hedge funds and the hedge fund goes by, another negative exposure i want to come back to the oil industry itself. it's hard in this environment to think whether there's positive opportunities within the industry whichever oil price contract we look at, whether the may one which is going nuts or others, clearly retesting the lows to oil prices themselves. interesting to look at exxon, bp, chevron, some of the majors, which are down 3 or 4% still 20, 25% above this lows from a month ago the oil price itself clearly at peak, somehow or another they aren't medium term there's an opportunity in there for bigger players that survive the immediate turmoil. >> there is, absolutely. it's a good point. stocks are down. i'm not going to make light of a 4% drop. you're point, well off the lows. by the way, chevron not at negative $30 let's just be honest

this is why etfs are going to suffer a bit you buy an etf, there's a lot of companies in there a stock picker's market. you're going to find companies that sush vif this number two, many of these companies, they are the ones that are hedged. yeah, they are going to get hit by the falling price of oil but many of these companies have hedge books for this year, maybe not next year, they are going to keep largely private what's their hedge book. that's really proprietary stuff. they have hedges maybe they are going to get paid on midstream companies, pipeline companies. they have got contracts, oil pipes are full and many of them also own tanker storage so they are probably full so they are getting paid as well there are opportunities to your point that are in this market. by the way, bring up some of these tanker stocks, dssi, stng, tk, nat. there's a couple of them these are the companies that own ships and they are getting paid because if you're an oil

producer or oil trader, you're thinking, my gosh, you know, i'm going to store oil anywhere i can. maybe that's in a ship off sea you're going to pay these day rates of 120,000 or whatever they are plus a day. i haven't looked at those stocks since this morning, they really took off throughout the day. those are the companies, not just those two, there's others, guys, that are going to get paid to literally sit off the coast of some country and just pay to store oil. you know those torch stations, manhattan mini store, it's basically like that for oil at this point. >> yeah, i'm going to start taking delivery here in my house, my apartment. >> don't. >> brian sullivan. thank you. we're going to talk much more about the collapse in oil when we're joined in just a bit by citigroup head of research edward morse and tom kloza to help make sense of this ginormous move in oil prices today.

>> lots more to discuss on that front and how it affects broader markets for which we can go to mike santoli, who is back with us mike, good to see you. what's the key factors to be watching out for today. >> you as well, will, good to see you. obviously in the near term contract as brian was talking about, massive dislocation there's a lot more oil traded in futures form and derivative forms than there is physically i don't think this was a relevant price for most of the physical oil in the world but it does show you obviously massively bearish fundamentals i think the way the stock market is treating it, there's not a lot of fresh information in this tremendous air pocket in the near term futures contract but there's a lot of information in $20 oil for june and the fact the entire curve is depressed and obviously kind of what we knew, which is the world is at a standstill we're not burning enough there's too much oil, too much stuff not getting used and

consumed i question how much that really has relevance to the way the equity market is set up right now. one way it does, credit market is not trading great even though the fed is back stopping parts of this market, it softened up today i do think that filtered into afternoon weakness in stock prices that's something to keep in mind i don't think it's a matter of the oil markets telling investors very much that they didn't already know except for obviously the fact that there's a lot of people offsides in these very fast moving volatile markets. >> quickly to the point i mentioned to brian energy sector in s&p wasn't the worst performing sector until about an hour or so ago wlaes priced into some of those majors at the moment in terms of the long-term future of their industry more broadly. >> i mean, they have obviously long lived producing assets. they are going to get priced off the longer term curve. also keep in mind the majors are not even very levered to this

price. they have massive refining operations they clearly are the net wip pes in industry that's going to have a reckoning right now. obviously a lot of going out of business and they are there with better balance sheets they can handle also the amount of weakness already sustained. by definition the spot or near-term futures price going under zero is a massive overshoot. so the market is not going to extrapolate that into the perpetual value of exxonmobil or chevron or anything like that. so i think that's where you can kind of rationalize those two things. >> so mike, you took some time off, and now the market is only down 12.5% for the year, the s&p. how have you been thinking about this extraordinary comeback and just whether it stacks up with the fundamentals and the outlook for the economy. >> yeah, it's a tricky question, sara, as you obviously know.

i do think this rebound rally has definitely overachieved in the speed with which it's kind of retaken a lot of those losses, gained back more than 50%, 55% of total losses i do think the question now is what's interesting if you look at a chart back to 2017 s&p got us right to the level it peaked in january 2018. we bottomed here in the summer of last year and were afraid of the recession that's come in a very unexpected way this year. so i think it's a little bit staticy in terms of near term and figuring what can further support higher equity prices i think what's relevant, what's gotten the index here. look at the breakdown of megacap growth stocks, really the things working right now. they aren't talking about benefiting from immediate reopening. that's old long-term cash flow story. that's what's working. equal weighted technology isn't doing any better than s&p 500 and russell 1,000, badly

underperforming. that to me says this is not a huge mismatch between what the stock market is saying and the really down beat realities of the economy right now, but the question is how much more of those growth stocks can do for us in the near term when you have the overall market that makes all kinds of sense to flatten out or at least back off. >> so good to have you back on board. we'll see you in a bit mike santoli, thank you. meantime the debate over more government funding heating up in washington kayla tausche has the latest kayla. >> sara, house democrats are going to be holding a conference call in just under an hour we could learn more about the state of play and negotiations between democrats and the white house as that malbusiness loan program that run out of money. negotiators were close to a deal but absent that actual handshake agreement, senate majority leader mitch mcconnell said he could not put anything on the floor for a vote but that could come tomorrow. here is senator mcconnell.

>> the senate regretfully will not be able to pass more funding for americans paychecks today. however, since this is so urgent, i've asked the senate meet again tomorrow in a new session that was not previously scheduled and the democratic leader that agreed to my request. >> so that so-called pro forma or brief session is scheduled to take place tomorrow at 4:00 p.m. the house could then take up anything the senate passes later in the week. the question whether the house could pass it unanimously is still up in the air. here is what is currently on the table in this nearly $500 billion package. it includes a $310 billion expansion of that paycheck protection program for small businesses, $60 billion of that earmarked specifically for businesses and communities that don't have access to big banks $75 billion for hospitals, $60 billion for small businesses

through a disaster relief program and then $25 billion for testing. that testing slice is what's currently under a microscope right now with discussions whether that money should go to the public sector or private sector to speed those test developments along guys. >> kayla, thank you for that no doubt key focus going forward. the market down 1.6% on the s&p 500. dow at session lows 575 points or 2.4% lies, of course, on oil, the worst. up next we'll have much more on this collapse in crude prices. currently negative for may contract, june ctronact still above $20 a barrel, although down 60% we'll be back in a couple of minutes. 580 on the dow s&p, nasq

outperforming down just 0.9. all sectors down low, energy down individual names, rite aid jumping as the company announced it's expanding on site locations

for covid-19 up 15%. peloton taking a hit following downgrade, concerned peloton's low price digital offering too good versus fitness subscription, the bike or the running machine as well. it's down 6.2%, of course. it's been one of the stay at home winners of late sara. >> wilfred, we are seeing a huge drop in oil prices main contract for wti crude actually turning negative. here for some explanation and what the account kba is, let's bring in s.o.s. fuel, it's a supplier of heating fuel and gasoline rob, thanks for phoning in obviously this is a huge headline and shocking thing to see, negative on the price of crude oil. what are the actual implications of it as it relates to your business and those businesses around you. >> hey, sara, thanks for having me on. well, it's interesting obviously monumental what's going on today but in reality doesn't affect

our daily performance. since we hedge actual product and our customer base we really look to the future and where the market is going to be. you know, it's nice to look at a graph and see the charts but when it comes to physical product and buying physical product, this has very little bearing on our business. >> why what sort of contracts should we be looking at when it comes to physical products you're buying or hedging and other oil companies are as well. >> since we're a physical buyer we're looking towards the future, looking at gasoline. we're trying to figure out where the market would be when the economy turns around i'm looking out towards september, october. >> so do you think we don't therefore, robert, see much benefit to the consumer whether talking about at the pump on heating bills? >> certainly it's going to show in the future. the low prices will carry on for

some time. certainly right now there's no demand so you're going to see low prices for quite a while it will certainly help the consumer, help the public. >> what do you think is going to happen to refiners, going to happen to the oil companies, how is the entire industry going to look different after this precipitous fall >> that's a really good question not being a crude trader or refiner myself, i'm not an expert of this this is going to change the landscape, of course i think going forward right now there's no demand. so that demand instruction -- there's no demand and no storage capacity so that's why you're seeing a steep drop in the market. >> well, we will all tip to look towards september and october. thank you for phoning in, the impact on the business

sos fuel, robert speigle we have 39 minutes of trading. take a look at the market, s&p down 1.7%. energy the worst performing sector, no sprees in the market. nothing like we're seeing in the underlying commodity energy stocks down about 4%. health care flat on the day. still ahead illinois governor j.b. pritzker drawing criticism from the white house after ordering medical gear from china. we'll speak with governor pritzker and fmeorr commerce secretary penny pritzker about the search for supplies in that state and much more. every financial plan needs a cfp® professional --

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welcome back oil prices collapsing in historic move low. what does it mean for equities and specifically oil etfs. bob pisani joins us with that angle. hey, bob. >> you know, wilfred, brian gave a great explanation of what's

happening with the may contract collapsing it's got another day to trade. i want to comment on oil etfs. a lot of investors try to own oil through etfs and commodities in general through etfs, a little risk here what you're doing with uto, there are several of them but this is the biggest as you're own front month future, the most immediate front month and the one after that, they have changed the rules on the u.s. to join the second front month contract you're not rolling over the day before seems people are misunderstanding how this works. they aren't out selling the may contract because it's rolling over tomorrow. they did that. under the rules they govern, they sold out of their may contract several weeks ago they started the 5th and ended the 13th they don't own may contracts people seem to think there's culpability around etfs trading here i think the key thing about these contracts, these are futures contracts. someone has to take physical

delivery tomorrow. usually these are refiners or airlines, people who need the oil. but it collapsed and tanks are full and nobody needs it the obvious explanationes there's no demand and no place to put the tough out there that's why we're dropping. by the way, guys, there is a separate issue with commodity etfs in general. when commodities in tango future contracts are expensive. every month they have to buy a contract more expensive. you lose money slowly over time. it's very risky to own these as a retail investor for long periods of time. these kinds of trades, etfs used primarily by professionals either hedging or trying to short the market you've got here dat mother of all contangos between the may and june contract. it's going to cause a lot of confusion tomorrow. >> bob, i think it's worth going through a little more what could have caused that may contract which expires tomorrow to fall so aggressively. an example, a speculator, not

someone who fundamentally has a use for oil, decided to go long and use that contract as the vehicle to do it in the last weeks because they thought opec production would work and drive the price higher as they near the date of expiration and it hasn't gone higher they need to get out of that contract of that's tan example of what could have caused this, right >> that is one plausible explanation. none of those speculators want to take physical possession. remember a futures contract at 2:30 it expires and you get a phone call and say where do you want to bring the oil. you are taking physical possession speculators like you described, they don't want to take physical possession so they have to sell it at some point it hits the wall and they have to sell it at any price. this is desperation what's fog on here today. >> bob, as far as what it means

for the overall market and economy, i've heard two arguments. one, it's less than 5% of the overall market so the market is able to shake this off but then again it's a bigger part of the credit market and a decent chunk of the u.s. economy and job creation and high paying wages. where are you on what the overall impact is going to be. >> i think the credit market is the key thing here we'veseen high yield etfs guy ra -- girate it's not -- oil is more impactful than that. it's not adequate to say energy is 4% of the s&p 500, who c.a.r.e.s. act no, no, no we cover oil every day it's in people's minds people drive by. they see it. it's emotional as well as economic impact and much, much greater than 4% of s&p 500 i think it's important the key for me here, there's a very obvious explanation of why

the futures simply collapsed here, the front month market collapsed here and you don't have to resort to explanations like, oh, etfs own too much of it clearly some people were speculating and on the wrong side of it there may have been other people betting short in the last couple of weeks, the amount of creations on etfs, oil etfs went up dramatically in the last couple of weeks. that's very likely the result of the people who are partly trying to short, people trying to hedge and maybe a few people trying to bet they could somehow make a profit on this obviously that's not working out too well right now. >> bob, as always, thanks, broader market down. still ahead much more on the historic day for the oil market. contracts as we just said plunging into negative territory for play contract. june $21 a barrel. up to date we'll speak to

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welcome back 28 minutes left of trading every sector down, energy hit the hardest as oil prices are in free fall going negative for the first time ever today. financials behind them, industrials, materials all bringing up the rear

health care is bringing up the best, down down about 500 points right now. nasdaq faring the best as it has been really for the past few weeks. wilfred. >> time for coronavirus news update, sue herera has got it for us hi, sue. >> i do, indeed, will, thank you very much. good afternoon, everyone as canada remains under outbreak restrictions, the country is morning the worst mass shooting in its history prime minister justin trudeau says the country will hold a virtual memorial nor victims canada is no place for violence after a gunman fatally shot at least 18 people. we're a country that stands united in our effort to defeat a pandemic, better lives and help people make it to a better day yesterday we were jolted by that common cause by the senseless violence and tragedy in nova scotia. >> france becomes the fourth

country to report more than 20,000 deaths from the coronavirus. new deaths rose after several days of declines however, the number of people in intensive care fell for the 12th straight day in russia as many as 15,000 troops have been quarantined they are rehearsing for russia's victory day parade celebrating the end of world war ii. russian president vladimir putin canceled festivities last week and said russia has not yet hit the peak of the pandemic as always you can get more on the coronavirus pandemic by going to cnbc.com. sara, back to you. >> thank you oil is the tore of the day closing negative for the first time ever. joining us on the phone is tom kloza. he's co-founder of the oil price information service, an expert we usually turn to, tom, on gas prices first, how does this unprecedented wipeout for the price of oil happen? >> i think we thought that it could go negative.

we see negative numbers for megawatts and electricity and propane and natural gas in the middle of texas. the scale of it, i don't think anyone was predicting this to go negative a few cents a barrel is one thing. to be negative by 30 or 40 cents a barrel, no one was expecting this i think the lesson here was that these huge markets, futures markets and options and derivatives, they create their own ecosystem. it really was the intricacies of the ecosystem with too many paper longs and too many people on the wrong side of the trade all trying to get out the door that only allowed a few of them out today. >> tom, just go one step further on that, if i may. this is being driven by financial market participants, speculators, not by fundamental economics of supply and demand for the hard commodity

is that right? >> i would agree with that there's many times where it's driven by fund flows and fund money and it gets driven too high this is the first time where i've seen it and it's been driven to unprecedented negative numbers. the mistake would be if people look at these numbers today for may wti and think of it as more than just a paper phenomenon it means that all the storage in the united states is spoken for. not that it's full but that it's spoken for and we knew that oil would have a tough time in april and may. we still see the market turning and rebalancing in the second half of the year and particularly toward the end of the year but we have this complete anomaly today, which is unprecedented. >> i was just going to ask whatsapp turns the tied? is it when we start to see states and companies around the world reopen then i guess demand goes up and that changes the math toward the

end of the year? what's to say june won't go down and other months in between. >> i think we can expect may to be equally as bad for the contracts. it wasn't historic opec accord you heard 97 barrels a day, you heard the president talking 20 i think the difference between the two is all of the crude oil that will get shut in. if you're talking about shale, you're talking about virtually no oil plays above break even right now. oil stands same thing, deep water oil, same thing. you're going to see shut ins or closures that are fog to be more than 10 million barrels a day. the problem is demand is down 25 to 30, so the two are going to have to meet it's going to take some time we didn't develop in 30 times, tight a longer time.

take a picture of these numbers. you're not going to see them for long. >> tom kloza, thanks for joining us we appreciate it we're going to continue the discussion now joining us is kyle bass. of course, hedge fund manager and cio for hayman capital market thanks for joining us. we're just discussing there with tom this is very much financial market participants, speculator as opposed to users of all that have driven this move. is that also your view and how many of your peer groups, hedge funds will be really hurting by this move? >> i tell you, on the hedge funds i'm in the sure. i have no clue how many are playing this i do -- look, i think that it's important to note that globally thewuhan virus has destroyed

out of 100 demand. u.s. storage in curbing or gulf coast or u.s. production facilities here in texas in the permian, everything is basic lip full, prior guests have spoken for. there's nowhere to put it. on these days when futures contracts expire, you have to be a physical owner you guys remember what happened to amaranth, the hedge fund, it was only financial markets participant, it wasn't a physical owner of the supplies, ie, it couldn't store them today if you were to buy the contract and hold it when the market closed today, you have to have a storage facility somewhere. they are full. globe producing way more oil than it's consuming now the storage is full and heading to ships. ships are fulg up. it's hard to fill up a ship when you're in cushing, oklahoma.

now we look to the next month. a june contract that expire may 19th the real distorting factor, i think the u.s. oil etfs. you think of just about one, uso holds 30% of the interest of the june contract. it owns a third of every contract out on the exchange today. they have to sell those things. >> that's the june contract, not the may contract. >> well, it's important to note that the june contract actually last trading day is may 19th so just like today, the last trading day was april 20th whatever the next front month is is june but expires may 19th the point i'm trying to make is the next contract, the reason that market held up, the reason june crude is at $21 a share or $21 a barrel, and may crude at

negative $38 a barrel is this distortion by the way, i had multitudesof friends reach out to me today saying now is the time to buy uso, crude oil at a $1, negative $10. i said you have no idea what you're buying. retail has been plowing into these oil contracts thinking they are buying spot crude oil when they are buying the next front month. so they are getting negative when the market is negative 38 retail investors are going to get fleeced if they continue to fly into these oil etfs. >> last week alone, i think uso brought in $1.6 billion in funds, to your point kyle, just for clarification, do you have any positions against or in any of these oil companies or any of these oil futures? just trying to gauge what skin you have or you're on cesc as a

market participant. >> absolutely. we've been short energy commodities and short some of these etfs i mean, it's important to understand the dynamics of the market vis-a-vis who is playing. in this case i think you have the entire retail community is playing into a listed etf that all it does is buy the front month futures and buy treasury bills in zero. there's a huge contango market all they are going to do is keep rolling that forward and keep paying higher and higher and higher prices for oil. i think it's actually a disaster for retail investors. >> what about, kyle, for the energy companies out there please do clarify as you said if you're long or short across the market as a whole, because clearly oil prices are at record lows right now but we've got the exxon, chevron, bps still 27%

off their low from a month ago does that make sense to you? >> it does we have this scenario where our economy -- we have a $23 trillion economy that's been turned off for about a month and a half it will probably be turned off for the next call it 30, 45 days as we try to roll and open sectors of our economy very carefully to try not to get an enormous reinfection rate. but it's important to note when you look at the curve, look at the strip of crude oil, you just look out to december, january. december of 2020, january 2021, oil -- crude oil in west texas is trading for $33 a barrel. i think this is a temporary supply shock that is stressing our system, very much like it's stressing our hospital system. it's something no one ever prepared for our economy to turn off. for the world economy to turn off. we have 3 billion people right now that are essentially staying

at home or under stay-at-home orders so i think as we start to roll and open our economy going forward, i think it makes sense that the big balance sheet, most well-heeled energy companies, they are survivors, winners over time the highly levered smaller companies that weren't hedged are going to go away this is a natural process when you go from a boom to a bust and i think we'll have a bust. it's important to note that the companies that have irreplaceable assets, the best production in the best fields, they are going to be survivors and winners. you ask me if it makes sense, it makes complete sense to me. >> yeah. you've seen some players, occidental down 70%, pioneer down 52. others down so much, kyle. president trump has gone to great lengths to pledge support tore this industry

he help broker or reportedly help broker that deal with russia and opec and committed the u.s. to it the whole world was stepping in to stop the fall of the price in nature even though this is on paper, it's a reminder how little demand there is for oil and how much supply there is and what the price collapse is going to do i wonder how you think it's going to impact the politics and the economics of this country going forward. >> i mean, guys, it's so easy to see what's happening here. it needs to be talked about more by people like you we're having the largest economic crisis from a percentage of gdp perspective maybe that the world has ever had collectively all at once that so happens to be the exact time that saudi and russia decide to, quote, have a dispute over opec production cuts and the fact u.s. shale business has gone from producing, you know, 5, 6 million barrels a day to 11

million barrels a day. the u.s. was energy independent. that changes the politics of how we interact with the middle east and russia dramatically. middle east and russia don't like that. what does nps and putin do they actually declared war on our shale business president trump has been meeting with the oil executives, domestic oil executives trying to figure out how to defend our national security interest in energy, which is the right thing to do as a president but unfortunately there's no stopping the glut and there's no stopping mbf from loading up vlccs and sending millions of barrels of oil over here at a point in time when we don't have anywhere to store it this is an intentional effort by saudi and russia to put u.s. shale out of business and we as a country need to fight back. >> but kyle, to what extent can they maintain that you made great calls on national economies in the past and

particularly china to what extent is this hurting russia, hurting saudi arabia was they rely so much on oil revenues and be a huge beneficiary for countries like china that are net energy importers. >> yeah, i think that's a great point, wilfred i think that saudi has a balance sheet that can last years as very low oil prices. russia is brilliant in their finance ministry they just let their currency fluctuate. if you remember when oil collapsed at the end of 2014, 2015, what does the ruble did in they put the ruble move 50%. next thing you know russia is at 2.5 gdp growth again russia and saudi play along game and so does china. we're going to go through a bit of a bust here i think we have the best innovation, greatest workers,

rule of law here, we don't have tyrannical dictatorship. we know the problems russia has and saudi and china. we still have the best organizational structure in the world in our country and we'll get through this in the meantime, i think when you look at the architecture of our marketplace, fcc has to take a hard look at why these anomalies are happening with crude oil andpaper -- the difference between paper trading and physical trading and who is getting fleeced, because i think it's very important for them to pay a lot of attention to this over the next few months >> so you said, kyle, you're getting against energy i wonder how else you're thinking about this market that has had such a strong and quick bounce off the lows we saw in march. better numbers in the u.s. and new york in particular around the virus but also such huge uncertainties around the economic outlook >> yeah, i mean, from our perspective, you know, believe it or not, i'm very optimistic about the fact that we have 70

plus vaccines in study i think the scientific community has literally dropped everything they are working on and all of our top scientists are focused on the wuhan virus vaccine i know that the gates foundation says it's going to be 18 months. i'm slightly more optimistic than that. i hope we'll have a workable vaccine by the end of the year i also think remdesivir from gilead and hydroxychloroquine are working. i think we're going to see the other side of this i think we'll see the other side of it in the next couple months and get a rolling opening done i'm bullish on the u.s. by the way, what the fed has gotten done, along with congress, is unprecedented. the fact we have $2.2 trillion stimulus through and $6 trillion

of fed programs in think back to the financial crisis and how long it took to get t.a.r.p. and talf done and how today i think from a political perspective we've never been more divided as a country than we are right at this minute. somehow we got this done and hopefully we'll get the next few versions done. remember, we have a $23 trillion economy that's for all intents and purposes going to be turned off for at least a quarter that means stimulus is going to end up being 5 or $6 trillion. you know me, i'm not a money for everyone person, a fiscal conservative but i believe this is not the time for politics this is time to get money in everyone's pockets that's been laid off every two weeks and let's focus on rebuilding our country. i think both democrats and republicans are going to get that done. >> kyle, i get all of that, and it's good to hear that optimistic tone. that said if we snapshot down,

s&p 500 down 12.5%, nasdaq down less than 5% year-to-date. given what you said large subways of smaller companies in the u.s., energy companies in the u.s. potentially facing real challenges, does that make sense to you we're only down 12% on s&p year-to-date. >> you sure now how to find the tougher questions. from my perspective you've got the s&p around 2800 right now. you know, the s&p is probably going to earn 100, 28 times earnings, clearly an earnings trough, maybe next year 140. at zero rates what multiple do you put on 140 do you put 20 times 140? that still gets me to 2800 that's a great question. i think the markets are priced

especially the s&p 500 for a great recovery i've always been under the opinion we'll have a w, we'll have animal spirits rekindled as we start to reopen the economy then i think we're actually going to see the difficulties that main street companies, small and medium-sized businesses are really having with this crisis so i don't know if you look out two or three years from now and let's say we're back to 160, $175 in s&p earnings and maybe you want to put a 20 or 25 on it, then you're back in the high,up, 32, 3300s i think we've had a major bounce and now we're going to have a little bit of digestion before we end up moving higher over time. >> kyle bass, thanks so much for calling in we appreciate it. >> thank you we've got just about eight minutes left in the trading day.

we're going straight into the closing bell market zone, commercial-free of the action. cnbc commentator mike santoli to break down trading day iq capital keith here as well. keith, first to you on the sharp drop in oil. what sort of ripple effects do you expect that might have on the overall market and economy. >> the play now not having an effect on the overall economy, pulled back but big names barely moving as a result of this clearly that's a sector that's been beaten down over the last couple of years. i do think the disruption and dislocation in the oil markets, we don't quite know the final chapter in that story as it relates to overall economy it's hard coming on the heels of kyle bass and he's a smart guy he said almost everything i wanted to say about oil and economy and the jobs program and everything else. the longer this stays town, the longer it starts to impact and

the fact we have -- it's interesting, he called it a supply shock i call it a demand shock either way we're up to our eyeballs in oil. we have nowhere to put it. that is an important commodity for our economy and the global economy that must stabilize, must be a little bit higher. until we get that back up to a more normal level, we'll be very uncertain where it leads in the economy. >> mike santoli, we talked a lot about what sectors held up the market in the last couple of years. again, i take a snapshot today and all the sectors are lower. it's now a question certain stocks, just a handful of stocks they are offsetting some of the losses such that we're not staring at anywhere near the scale of losses that the old price might suggest. >> right for sure amazon is up today as it is every day. biotech is up for the intuitive reasons. but it is mostly longer-term

growth companies that are managing to hold the indexes together i would if you want to dial it back a little from the broader angle, the market today, s&p is giving back friday's quick pop of a rally for the past five days the s&p is more or less side ways, slightly lower so it seems a little bit tired we had massive furious rebound rally and now a question whether big stocks can continue to support things or be helpful rotation or if we need a little bit of a backing off of the market to regenerate a base as opposed to this grab for stocks, handful of stoox that drove things higher. >> noted investor howard marks from oaks trade joined cnbc earlier. here is what he said on the markets right now. >> it took seven years to get back to 2005, '7. five years to get back to the '07 high in late '12

is it really appropriate that given all the bad news in the world today we should get back to the pie in three months that seems inappropriately positive >> so keith joining the chorus of noted investors and so many people we talk to, wondering about the size and the speed of the move to come given the size and speed of the losses we're seeing in the economy and in earnings what do you think? >> well, it's an interesting point and one that, you know, is taken with good clarity when you listen to somebody like howard marks who obviously is successful he knows what he's doing i think one of the things we need to bear in mind is that as the late great walter rhyson was quoted as saying, chairman of

citigroup. capital growth rewarded and treated well that's always been the equity markets. the equity market is a forward-looking where analyst try to model out what future growth streams look like and attaching a multiple to that it's fair value for that price if you listen to what some of the commentary had been today, that's what investors, i think, are if he got ahead of then again in the absence of another market to go put your cash and put your money outside of maybe gold, which by the way has gotten overstretched to the upside you can't put it in oil. certainly can't put it in t bonds and t-bills for return the other thing going on here, if somewhere making a bet the oil news was going to abate by this time if they made those bets back in march, that hasn't turn out to be so. we're still dealing with both of these things there is a bit of a pavlovian

response where people believe physical authorities and monetary authorities like the fed will continue to fire this market and keep it lifted. >> let's get to an energy related story. airlines, united under pressure in particular today. phil lebeau has the story for us. >> a lot of $2.1 billion shares under pressure all day long you look at united lick, remember, they have $6.3 billion on hand, a payroll grant of $5 billion coming from treasury may access another $4.5 billion from treasury. that's the focus not only united but all airlines speaking of airlines youton want to miss this exclusive tomorrow morning on "squawk on the street" we will be talking with robin hayes, ceo of jet blue you can bet we'll be talking about liquidity as well as market overall for a troubled airline industry guys, back to you. >> all right should be a good one mike, more on the market

internals. what do you see inside the market today >> there's weakness, even market in decks holding up. up and down, to the downside you want to mentioning early about the credit markets they really did back off. the high yield etf is down right in line today with the s&p 500 that obviously is not helping the bulls case nor treasury yield, 0.2%. then roll tilt index it's popping. it stopped going down the last self days as the stock market stalled. 4344 if you get above there it's starting to look like it's not really ina steep downturn whic would be a little bit of a warning. >> mike, thanks for that let's have a look at broader indexes with broader look at the session. down 560, low 580, 2.3%, s&p 500 down 7%. all lower led by health care only down 0.7% at the bottom

energy, real estate, and utilities, of course, all priced front and center throughout the day. negative for the may contract worth reminding that the june contract only down 14%, till above $21 likes of exxon only down 5% on the session at the bell, sara, s&p 500 down 1.8% with all the sectors within the s&p lower as well. >> first down day for the market in the last three. welcome, everyone. if you're just joining us i'm sara eisen with wilfred frost, mike santoli, cnbc markets commentator. take a look. we finished the day on wall street, decline for dow. biggest drag on the dow was boeing you had a number of dow components down more which led the tao to have outside loss, unh, apple, visa, chipping away. s&p down 8%. the losses were pretty

widespread with all the sectors ending in red. energy the hardest hit financials, industrials, materials and real estate hit hard nasdaq holding up better than overall market a as it has been doing down 1%. russell index small caps, it's been underperforming all year, down 1.29% we have earnings of a the bill ibm set to report quarterly, any minute instant analysis of the numbers as soon as they are released and of course what matters to investors right now amidstream uncertainty of covid-19 and impact on business. joining us to talk about the market today, iq capital's keith bliss with us, pavel molchanov to discuss the collapse in oil prices the story of the day with front month contract going negative on the price of crude over for the first time ever first, mike, i'll send it back to you for some commentary on what we saw throughout the trading day today.

>> the market has fatigue hampering it right now interestingly where it closed is exactly where it bottomed last augu august we had flattening curve, backed off to 2020 and had subsequent fourth quarter rally there's symmetry and logical area for the market to flatten out at minimum if not kind of maybe top of short-term trading range. i would say within it, the market is rotating towards the areas more reliable, when the market reopens, growth stocks, see if they last. >> mike, back to the point we're discussing before the marks clip clearly easy to make that point and makes sense to make the point the economy is going to suffer more than perhaps the market is implying on the flip side, how many out

the there. to what extent was it a consensus to say, yes, we're going to retest the low. at that point kind of makes it harder to see pullbacks in the last couple of days last more than a couple percent. >> this market whip sawed the collective psychology. i don't think anybody was prepared for straight line rebound regaining more than half of the total losses. that probably did fuel, in fact, pain trade to the upside as it persisted. i don't know where that sits right now. i don't think people positioned for truly new lows in a short-term fashion i also think it's very hard to compare this episode to 2000 and 2007 market peaks. there was a two-year period or more which the market wentdown 55%. then you're talking how long it went back to the peak after that prolonged episode.

this is a different thing. this is a shock and crash. we'll see if it develops into persistent bear market i don't think we'll pop 20% tomorrow to go back to the old highs but i do think that is more confusion is the consensus than a rigid idea the market deserves to be right here or is definitely going to be going back to the lows. >> before we hit oil, mike, i was just wondering, there are some similarities with how the market traded around china remember when china was completely shut down and cut off from the entirely world? we remember why the market in the u.s. so resilient, the lunar year, took the hit and right back up. everyone said can't trust chinese data, markets, they are buying stocks. if you listen to consumer companies, which you know i poll p&g, just recently l'oreal, lvmh, starbucks, apple, these companies are all talking about

the chinese recovery what it shows if nothing else, recovery can come back and can come back quick ly i'm not sure how many of a corollary you can draw but i wonder if there's some pattern with that and how we're trading here. >> how about how the chinese traded when they were in the depths of their shutdown assuming it was artificial, response to stimulus right now response to stimulus as well, very front loaded. >> let's talk a little more boit oil and the move we've seen today, should remind the may contract doesn't expire until 2:30 tomorrow we've got another day of that roller coaster for that particular contract pavel, what's your take as to whether this is a one-day or couple of day financial market move when you look at the june price, you look at the july price, once we get past this contract

expirey we'll have some level of normalcy in the market. >> it is a complete meaningless, irrelevant data point. nobody who follows energy should focus on the price of wti under these bizarre conditions, firstly because of the contract rolling forward. second, wti is measured at a specific place, the cushing club in oklahoma where storage is about to run out because of this dynamic we should focus on brent as the benchmark that provides a meaningful point of reference for what's happening in the globally oil market. it's $26 a barrel, which is not great. not a bullish number but obviously very different from from a negative 30. >> the question, pavel, what about june and other months. are we going to see the same

dynamic where it will add up and will impact companies that will have to hedge at prices down the road >> nobody, safe to say, hedging at negative prices when we see there bizarre technical dislocation, what that tells us is there's a need for producers to shut in fields. now, we've already seen that in canada, in oklahoma, in brazil, elsewhere, separate from the opec agreement that came out ten days ago we'll be seeing more and more oil producers including in the united states shutting down fields because there is simply nowhere to put the barrels negative price, again, while it's not a very meaningful number to the extent it has any significance, it tells us companies need to be shutting down wealth. >> pavel, to what extent looking

past this may expiration, the oil price in the next week, to what extent does it rest opec and russia make the kind of cuts we've heard about or is the market tell us at the moment those cuts are irrelevant in the face of demand as well. >> opec is planning to cut by 10 million barrels a day starting in may the fact of the matter is we have 20 million barrels a day of global demand that is offline because of the lockdowns, stay at home, economic dislocation. nothing like this has happened in modern history. 3.5 billion people are told to sit at home right now. you can imagine what that's done to gasoline, diesel, obviously jet fuel consumption this is fundamentally a demand crisis, a demand shock it will only be demand that ends up providing a sustainable

solution once the pandemic sub sides and we're seeing this in places like india, germany, italy, places in lockdown as well, once that happens there will be a demand recovery that enables oil to rebound in a sustainable way yes, the opec deal halts on the margin but it is barely half of what demand destruction has been in recent weeks. >> pavel, thanks for joining us, much appreciated let's switch focus and talk about ibm numbers, first big tech company, also for them first quarter under new ceo. of course, it is a backward looking quarter like with every single company this quarter, it's going to have less importance than in the past. here are the numbers, beaten slightly adjusted eps.

the share price down a percent in after hours trade fractionally higher at the close, 0.25% in terms of things going forward, the key part is they remain fully committed to the dividend that's perhaps the key way to have a guide on confidence 1.4 billion to shareholders in the first quarter. puts them on 5.5% yield they have been on coming into this. of course, in terms of guidance going forward, they have removed guidance as many expected and many companies reporting last week have done we've taken actions within our business to provide necessary flexibility on operating efficiency on the current environment. they say they have $12 billion of cash on hand which includes marketable securities and the key part removing guidance going forward but maintaining dividend

which is perhaps the only guide going forward. mike santoli quickly come to you market reaction, 1.3%, quarter itself solid but maintaining dividend against slight guide they are feeling all right going forward and a sign for tech industry, first to report. >> yeah. it really is almost typical quarter. not demand falloff, demand such that there's licenses, the importance of dividend which i do think is central to shareholder base's interest in the stock is relevant here the stock has taken punishment in lechls levels it's trading at now. while you can say first quarter earnings are not relevant, this is not a big change in terms of overall trend of the company or what investors have come to expect. >> let's bring in evercore analyst, armit

what's your takeaway of the numbers. are you pleased? >> maintain some and backing away from that that will give folks a sense of relief to your point, eps numbers pretty sizable tax benefit, about a billion dollars. how is that offset or enabling the low quality, high-quality matter nor investors to look at, then a new ceo what he says about the future transition of the company and how intense will be fairly relevant as well. >> armit, tay with us. what stands out for you? >> hey, wilfred. i was looking at red hat, $34 million distribution, biggest in history, investors want to know how ibm is going to justify that

price tag. that's broken up red hot revenue of 18% in the quarter. the quarter grew 24% and the quarter before that was 19%. so the rate of that growth is slowing sequentially when really the market is looking to accelerate and really help make ibm a substantial, much bigger player in the cloud. particularly hybridcloud remember, they have been talking a ton about the acquisition, key to turning around the company. cloud growth, also a deceleration quarter after quarter, q4, cloud revenue grew 21, $6.8 billion in sales. i would agree with mike santoli i don't think this changes the picture a huge amount. you pointed out commentary around covid-19 there wasn't that but they are comfortable. are they going to see growth accelerate, something it's tried to do for years now. it doesn't feel like a huge game

changer in these numbers on that front. >> no. i mean, the conference call is going to be more important on so many of these companies than the earnings because it feels very stale to me. we're in a world now where companies are focused on trying to reopen their businesses as an economy is shut down what does that mean for corporate spending and corporate i.t. on cloud services that could actually drive ibm's business any sense of that armit? >> we'll be waiting for the call to hear that we don't get a lot of sense from the wire sorry. armit. >> i think the wild card for them is this is heavily a services business. service is essentially with customers. when and how that opens up will be very relevant on the cloud side, software side, better

two things i was worried about red hat deceleration, why is that, how is that ship going forward and consulting services business in the midst of a global shutdown will be very relevant. >> keith, i want to bring back to you to settle on what this means for the market i guess a big tech company comes out relatively reassuring, relative to the oil price move today. is that what we've got to focus on or do we have to focus on the market technicals, things like we saw in the oil market today, in terms of what it means for s&p 500 tech levels. >> underscore previous comments. ibm has been singing the same story for the last several quarters here and it's not that enthralling. aerpgs didn earnings didn't go all the way down we need to concentrate inside the market, wait for bigger

names to come out. the other thing everybody is saying we've got to listen to conference call. first quarter impacted by covid but really what they are looking for in the second and third quarter. really if the analyst can draw that out the third quarter or fourth quarter, that's what everybody is waiting to hear and see what the companies think about when the crisis will end and everybody can get back to work and start making money again. >> thanks for joining us. still ahead on closing bell, ed morse, one of the first to predict oil futures do negative. back in 90 seconds, don't go anywhere

oil posting its worst day ever with soon to expire may wti contract turning negative for the first time the june contract also getting hit pretty hard settling around $20 a barrel for more on these historic moves, let's bring in ed morse, global head of research at citi. seeing a negative price on oil, unthinkable. how do you interpret the action we saw today in the oil market >> sure. last speaker indicated, combination of two factors, movement in various parts of the world where oil is stored. cushing isn't technically tops

but virtually all the remaining storage iscontracted out so nobody can buy into it that's one critical move not going to disappear any time soon see what happens with next the other factor is a shift in holdings of the contract we think etfs are holding around 25 to 30% of the open interest in contracts and that certainly must have been a factor at work today as we've gone into this period of time. >> so ed, was that the key factor if it was, then i guess it might suggest fast forward demand we're going to see exactly the same thing play out on the juppe contract or were there oneoff specifics that applied, hedge fund or three aggressively being long and not wanting to take delivery when that long position didn't work out. >> not according to the data

the data would indicate the market has never been more short thinksed th positioned than it is right now. we manage money long and shorts, looking at them against each other. it's about as low as we can go we know that aside from managed money positions, noncommercials in brent were short rather than long i think this was not the active hedge fund market participants involved it was definitely something else, almost certainly a combination of machine trading on the one hand reflecting signals. as i said on the other hand this new factor of 25% of open interest being held by etfs. >> underlying all of it huge supply cut and collapse in demand, ed where do those trends end up going over the next few months what's the forecast? >> our forecast will get worse

before they get better yeah, partially reflective of markets. we think the data brent market is getting weaker and weaker we would not be surprised to see brent averaging in the teens for the quarter as a whole so the worst is yet to come. on the other hand if the coronavirus turns out to evolve in the same way that it has in chi china, when we get to the rest of the world 4.3 billion people in lockdown of one kind or another, incremental demand massive for gasoline, diesel, not so much jet fuel we think huge inventory builds we're seeing in this quarter, which are the reason for the price crash, the need to store inventory is greater than logistics system that can handle it we reckon the logistics system

can handle 8 million barrels a day globally into inventory and the pressure is for more than that that's why you get to low, 0, negative prices. this will be over when the coronavirus starts to lead to recovery and recovery in transportation and fuel markets. even believing as we do there will be some cheating around opec cuts come july and into august, this massive increase in inventories is going to be followed by massive decline in inventories. the draw on inventories we calculate is going to be in the 4 million barrel a day range, maybe it will be higher, maybe lower. the inventory draw is going to be at the same kind of record levels as the inventory build is in the second quarter. with that we think there's going to be a very sharp price recovery so the opec plus cuts might have been too little too late the non-opec country shutting in may be slower than people might have thought but we think the price recovery

is going to be pretty swift as a result of it so i think we'll looking at brent prices averaging in 30, $35, third quartered and $45 in the fourth quarter unless something happens we're not aware of certainly another revival of coronavirus in q4 could make for another demand. >> we discussed this with karl bass earlier to what extent are saudi arabia and russia celebrating at the moment or are they going to be feeling the pinch themselves much more than they are letting on. >> no. they are feeling the pinch already. that's why they got together last weekend in the help of donald trump no this was not something either of them expected, pa marka market f anything like this, a drop in crude oil demand from refiners yes, at low prices they are suffering. they are suffering because they

really can't sell crude oil. so to a significant degree, the initial cuts are just making good on market fact that there are almost no buyers around incrementally for the crude that's in the market. >> ed morse, thanks so much for joining us always a pleasure. still ahead, illinois governor j.b. pritzker and former commerce secretary penny pritzker will join us on the opinans efforts to plan a reeng d secure supplies for their health care system back in a couple minutes don't go anywhere.

welcome back let's take a look how we finished up the day on wall street stocks taking a step back today. s&p closing lower by 1.8%. energy hardest hit stocks took a leg lower in the afternoon when we saw that historic plunge in crude oil with the current may contract falling below zero for the first time ever and settling down $37.63 a barrel. stocks like health care and communication services held up better and s&p is still tracking for its best month since 2011. nasdaq holding up, down 1% wilfred. >> let's get up to mike. he's been looking at the relationship of stocks v. bond of late.

mike. >> yeah, well, familiar kind of interplay, equity risk premium, the earnings yield s&p compares to 10-year treasury yield, if you look far enough to see tendencies morgan stanley pointing out whip equities look at this measure as cheap versus treasuries as they did in the bottom of march of 2009 roughly speaking they are suggesting perhaps the premium can continue to bleed lower as markets find their footing that can happen three days ways, stock prices continuing to go higher, happen forward earnings declining more than expected that would make the equity market look more expensive cosmetically at least. then, of course, treasury yields could go higher. all those things could happen to bring the relationship back in tune with the historical te tendencie tendencies

i do think it's worth keeping an eye where it sits. no one correct level if you believe there's information content where treasuries are sitting right now in terms of the spectrum of asset classes and how attractive they are, this is one way perhaps some of the market bulls are trying the case for equities while right now they certainly do not look inexpensive at all based on what we know of earnings. >> mike, if we step away from the crazy move wti oil, outside of that, is it fair to say technicals are less of a factor now for equity markets than they were a month or so ago and there was some more realistic level of fundamentals driving things? >> i think the extremes, technical extremes and stress points are lessened right now. i have to say i don't know you want to necessarily declare victory. yes, basic equities are trading better but it is still a jumpy market we do still have kind of quicksilver moves and individual sectors of the market against

another one. so i would say it's better but i don't know that it's necessarily fixed. i think that the oil move does show you something about essentially the middleman function in the markets is compromised across many asset classes. i would say it's better but maybe not fixed. >> a lot of people are looking at stocks versus bonds and wondering why the bond market is not as optimistic or rosy as the stock market has been with this big jump, this big bounce off the lows, mike 10-year yield at .62 is the picture of a strong economic recovery does that tell us this is all about the fed? >> i think it does certainly the fed is a piece of it, right? they are buying up almost everything but stocks. i do think the two-year note at 0.2% is a fly in the ointment for the bull case for stocks it's not necessarily great it tells us again what everybody

agrees on already, the fed at zero for the foreseeable future, expanding its balance sheet and it's not necessarily as if the bond market is sniffing out something that would be surprising at the moment to stock investors. i do think equities are definitely taking the rosier side of things but mostly because they quickly react to the stimulus and also you have those big, huge growth companies a little more insulated to what happens. >> sara, just to round off the chat on this point, totally agreed with what's implied, doesn't paint rosy picture but that's a better outcome than italy and something we need to keep watching where yields are spiking because of fears of the outlook and fears of the future of the balance sheet 194, risen 70 basis points in the last three weeks, not as

high as the peak of the fear in the middle of march but something to watch out for and a worse outcome than falling yields as we've got here in the u.s. >> no, you don't want them rising too much and you don't want them fall too much, i guess, is the concern. it also continues to show that the risk there to the fiscal outlook is so different than a place like the united states where we can borrow almost for free that's what's funding all these stimulus programs we're seeing mike, we'll talk to you in a bit. time for a coronavirus news update with sue herera hi, sue. >> helloing, everyone. here is what's happening at this hour new jersey's governor murphy says the state would need to double testing to reopen warning a return of business could backfire if testing is not ramped up. >> reopening the economy today would backfire on us in two respects a large spike in covid-19 cases

and no customers at our stores because people are still fearful for their health and that of their kids and families. >> ohio becoming the latest state to close all kindergarten through 12th grade schools through the end of the academic year governor dewine says they will continue school as we fight the pandemic. a surge in u.s. poison center calls over the last three months this as americans ramp up cleaning efforts to avoid contracting coronavirus. between january and march, poison control centers received more than 45,000 calls alone related to cleaners and disinfectant as always for more on the coronavirus coverage at cnbc, go to cnbc.com. sara, black to you. >> someone had to it will me not to bleach my vegetables. sue, thank you. next, one of the largest

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welcome back as people spend more time at home, waste collection company is adjusting business operations to adapt to the new normal republic services expecting 30% incidental residential waste volume and taking steps to support frontline workers and commercial customers joining us now ceo don slager. thank you for joining us -- joining us, excuse me. >> thanks. good to be with you. >> talk us through that balance between demand for your product in the residential side versus commercial side and the change you've seen. >> sure. certainly aswe've seen more people sheltered in place, staying at home, working from home, we've seen increases in residential waste volume likewise we've seen some decreases in commercial waste and industrial waste as certain industries are shut down during

this virus crisis. what we've done is spent our time balancing the workload. first and foremost we put the safety of our people first, so we went into high gear planning for a crisis response days, weeks, frankly, before it became a pandemic, started focusing on how to balance the workload, make sure we could provide that necessary service to our residential customers and keep our people safe throughout and now we've seen that volume over the last several weeks somewhat equalize and stabilize. >> so obviously they are essential workers. how are you keeping your workers safe >> well, you think about it, first of all, most of our frontline people work alone. our drivers, for instance, we have 16,000 drivers who roll out of the yard every morning. most of them work alone in their trucks and their cabs. we've done a great job over recent years and decades automating the work they do so you don't come in contact with

the waste in most cases. again, all the necessary appropriate ppe and masks and training we've change the way we do work, meetings, roll out of the yard we've had a lot of people who aren't opt front lines of our business working from home we have about 900 customer service agents working in our three customer service centers we move them to working to home in about three days. it's a heavy lift by a lot of learning in that we did a good job keeping everyone safe. >> don, is the broader industry coping as well what could thing at home be doing to aid the industry, whether that's separating out their trash in a more particular way or any other suggestions you might have. >> well, i guess the first thing i would say is patience. any time like this, our people are working hard we've got great service levels we're experiencing

patients with schedules as they may change in some cases we've had to for a very short time postpone collection of things like bulk waste or yard waste to focus on the necessary part of getting the trash off the street that's been done now you'll see it start to resume some of those other services over the next couple of weeks. but overall our people are doing a great job, and that's why we rolled out this committed to serve initiative to really reward them and show our appreciation and also a way to pay it forward to our small business customers as well >> don, thanks so much for joining us we appreciate it. >> thank you. >> still to come, the tension between states and the federal government continues illinois governor j.b. pritzker airlifted in $2 million worth of medical supplies and his efforts received a sharp pushback from the white house. joined by u.s. former commerce

secretary penny pritzker nowadays you do more from home than ever before.

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we're working to make things a little easier for everyone. download the xfinity my account app today. welcome back total positive coronavirus cases in illinois topping 30,000 as states struggle to get enough test kits and protective gear for its citizens, some governors are looking outside the federal government for coronavirus aid with us now is illinois governor j.b. pritzker and penny pritzker, chair of the illinois covid-19 response fund and former commerce secretary under president obama. nice to see you booth. thank you for joining us >> thank you. >> first, governor, on the question of the moment, which is how are you thinking about time line for reopening the state of illinois >> well, let me start by saying we've got to get past the peak here we're not past it in illinois.

i'm hoping that peak will come as some of the models show in the middle of may. then as the president's plan for reopening says you've got to have a um in of days in a row, i think his suggest 14 days of numbers going down that's what we're looking for. in the meantime schools are closed we're looking at making some alterations to our stay-at-home order so we can maybe loosen up a little bit here and there but also looking at where people ought to wear masks and where we ought to require it. >> as i mentioned in the introduction you've been going to great lengths to get what you need in terms of ppe, those masks to hospital workers. tell us about this sort of secretive deal you had to broker with china and how and whether the white house got involved. >> well, it's funny it's being described that way look, what happens was unfortunately as you know the market, it's the wild west out there, i've always said.

we're competing against other states and countries and the united states government so what's happened apparently in some other states is that the federal government seized shipments that arrived that states ordered as a result states had to go acquire things, go around the federal government that's all we did, a contractor with the private company to have those delivered. we bought them, needed them to be delivered to chicago, to o'hare so we got them the last flight, second flight arrived at 4:30 this morning >> are you having active fights with the administration about getting access to that equipment, to your state >> not anymore i have certainly asked for everything it needed the federal government happened delivered what it said it would be we've got 40% of the ppe we

asked for from the federal government's stockpile many states will tell you that's what happened to them, just a fraction of the request they made we received some ventilators, very helpful, from the federal government, 600 total in our state from the feds. very importantly the army and army corps of engineers together with fema and hhs worked with our local labor unions and in our mccormick convention center to build out care facility if hospitals overflow we'll be able to manage as many as 3,000 patients there >> i have friends who are doctors there who volunteered for that effort and so far have not had to go in secretary pritzker, tell us a little about when you're doing, the covid-19 response fund and the sort of interesting private-public sector partnerships that you're focused on. >> this is really all hands on deck across the nation and in

illinois particularly are really feeling real and significant pain due to this terrible crisis you've seen the line of folks waiting in food banks across the nation and we have so many millions of people out of work way too many cannot afford basic needs. so the governor asked me if i would chair and create something called the illinois covid response fund, which i really have been honored to lead and set up with a whole team of people from across the state we've raised over $30 million to help with very basic needs food, shelter, diapers, health care, utilities. so far we've dispersed 5.6 million to nonprofit organizations across the state this week another round of grants will go out such that 100% of the state will be reaching more than 1. 7 million

people thus far from assistance. i encourage anybody who has the capacity to give $1 or $5. we're really putting the money to good work whether it's helping seniors, helping those who need food, those who need shelter, those suffering from domestic abuse it's really a very painful time out there and we're doing our best to help as man people from illinois as we can. >> secretary pritzker, do you think this crisis will alter the debate in the u.s. and public opinion in the u.s. for a need for a broader safety net, more broad all-encompassing health care. >> i've been talking about the need to build a 20th century health care net for a while. we need health care system, snapch s.n.a.p. funding so he with know all our citizens and children have access to feed, make sure unemployment insurance is working for all, particularly

during this time of crisis my goodness, we need broadband access we need broadband access all over our country you're seeing really the challenge so many of our students are facing in different parts of our state where there isn't ubiquitous coverage so they are not able to access their educational system so yes, i do think our social safety net needs an overhaul a modern economy like ours ought to be able to provide that. >> governor, i wanted to go back to the topic of reopening the economy, if i may. the u.s. is such a large and diverse country. that's also meant there's been a different pace of flattening of the curve as it relates to covid. to what extent does that concern you? even if one state might be ready to reopen, without shutting its borders, which is not really being considered, i don't think, at the moment, will that not

automatically lead to resteepening of the curve in that state or another one nearby. >> it's true i would have preferred to have a national strategy put in place, but lacking that, you know, here in the midwest i've worked together with governors from surrounding states, most of the surrounding states to try to put together a plan that would work for each of us based on a common set of principles for how to reopen the economy. we, of course, have so many businesses now, suffering, we have federal aid, we need state aid. i'm hoping that bill will pass so we can expand the ppe program. it is true, it's worrisome if you have one state on its way up to the peak and another state on its way past the peak and that

you have cross-border travel that's going to happen of this is a free company. what we need to do is take a common set of principles and work with those. and i've said what we need broadly is testing we need to make sure we have contact tracing. and then we need a treatment two of those three are in the control of the governors and the federal government if they will help of course we need widespread availability of ppe, but the research that will lead to a treatment, that is so vitally important, and i'm prayerful that we'll end up with one of the 70 treatments that are in trials right now as something that will keep people out of the hospital. >> you mentioned governor the need for state aid, you've come under a little fire from a request from the illinois senate to congress, asking for that aid to go fund illinois pensions

which is a problem that your state has had well before covid 19 how do you respond to that, and particularly some of the sharp criticism you've received from the local papers >> i didn't write that letter to start with, what i have asked the federal government for is the same thing that the other states have asked for, we need direct aid to the states, all of us, all of us have revenue shortfalls as a result of what's happened to the economy, and all of us have challenges providing more and more services that are needed as the economy has basically shut down. so with that kind of a hole in everybody's budget, it seems to make sense if we want to maintain people -- get to make sure they get their jobs back, make sure they can afford to stay in their homes, to put meals on the table we need to get aid from the federal government it's really the only way to do it at this point >> thank you both for joining us, to talk about what's happening in illinois. j.b. pritzker and his sister

penny pritzker, former commerce secretary. ibm sinking a bit here after hours. it'somtt t cmiedo its current dividend what to expect from the call life isn't a straight line.

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because they never quit. welcome back, each day we've been finding stories of hope and optimism as companies and individuals step up for the greater good, here are some examples idris elba and his wife have launched a $40 million united nations fund for poor farmers. this after recovering from the coronavirus themselves the first critical care ventilators were delivered by ups to hospitals in illinois on friday and over the weekend. and as if his resume isn't already long enough, david at n attenborough adding geography

teacher, teaching students during the coronavirus lockdown. for every burrito bought with the code 4 heroes, chipotle will donate another to a medical profession professional and take a listen to this. ♪ >> that is a california opera singer, who's been performing concerts from her porch using her voice to uplift neighbors and community. reminds me of the singing we saw in italy >> i thought you were going to say the singing done at home, sadly, not quite the case. so good in, that encouraging people almost to break social distancing, but not quite. they were still just about six feet apart, it looked like looking ahead to tomorrow, big earnings, a preview of coca-cola. julia has a preview of netflix for us >> netflix shares are 3 1/2%

today, and 35% this year on expectations the company will report a surge in subscriptions and lower churn. the key number to watch tomorrow is subscribers which analysts expect to be 1 million higher than what netflix forecasted last quarter earnings are expected to grow nearly 116%. on the earnings call we'll be listening from guidance from reed hastings on the potential for price hikes and how much netflix plans to invest in content going-forward. disney whose shares have dropped 4% today reported its espn documentary on michael jordan was the most viewed espn documentary content averaging 6.1 million viewers. back over to you what should we be looking out for in coca-cola >> i thought you were going to ask me about the doc, it was great. i watched it

coke should be helped by this whole pantry loading phenomenon, where people have gone out to groceries and stocked up their on their favorite. it could get hurt by the strong dollar of course this idea that social soda, as i like to call it, has been hurt. restaurants are closed, people drinking out at korns erts and other things that have been closed we have an exclusive with the ceo at 9:30. >> we look forward to that immensely, when the numbers come out. thanks for watching, and a very big important warm welcome for melissa lee who picks up fast money. >> great to be back, welcome to fast money, i haven't said that in a very long time. i'm melissa lee, your traders for the next hour are guy adami and dan nathan mark cuban is with us, why he is calling for a major overhaul of the small business relief program to bring the economy