welcome bark, everybody to our breaking news coverage welcome to power lunch welcome to my kitchen. markets are under pressure the dow down more than 500 points another ugly day for oil, maybe not quite as shocking as yesterday. the may contract closed at negative $37 you see it's up $46. that one tanking today breaking now below $10

kelly. >> the dow shedding 5% in let's get to bob for more on this sell off. bob. >> i think the key here today is oils impact but it's impacting things outside the oil market. leets ta let's take a look at the sectors. the two biggest that are out there, tech and financials are the weakst ones. they will put pressure on the s&p 500 because they are a big part of the overall market capitalization industrial is also weak. energy is not among the big pressure points in the s&p 500 today. i want to poipt out some of these big momentum names that have helped in the tech area in the last few days. generally, weak today. advance micro, starbucks

these are momentum names that have done well recently and they are having problems today. the futures contract highly showed you that. it's remarkable to look at an $8 future track as $18. that's an enormous spread we're looking at here. some of these tanker companies have having a tremendous day to the up side. soc some of these energy futures just all over the place putting a lot of pressure on the markets. energy stocks not done that much what this is telling me is that energy, the impact of oil being down here on the short term, futures contract is not having an enormous impact on the future earnings prospect for the energy companies which are poor but these are short term not impacting the energy companies. high yields etfs down today. they hold very large positions

in energy. when there are issues around them, they are generally to the down side. back to you. >> all right thank you very much. the energy fall out that bob just detailed weighing l ining on the bond market rick has more details on this. what is this telling us, rick? >> tyler, i think a great way to get into this is to look at a crb chart. this is an inflation commodity chart. if you look back at the crb, i can go back 94, so 26 years. this is the lowest level ever. it's not only oil. there's disinflationary pressures throughout the commodity system and a lot of it is due to falling demand or when it comes to things like food with all the restaurants closed, we're still eating but the logistics of moving things around haven't been figured out yet. we got down to 54 basis points

it's the lowest yields close for 10 for march 9th ever 30 day basis point s the int intraday low we want to pay close attention to this level in general bob was mentioning the jnk, the high yield etfs, here is a three-day chart. it's cascading down with the oi patch. if you look at the tens minus two yield curve it's doing the same thing it's the flattest since mid-march. all of this isn't only about oil. it's about everything in the systems and the downward pressures. we're not going to have a v bottom so we might not see an inflationary spike it might be like a w yields, well, treasuries are in demand for many things one of them is not much inflation in the front of the car in the wind shield at all. tyler, back to you

>> good point. the may contracts collapsing ahead of its expiration in about 20 minutes time plunging into negative territory june contract sinking as you see right there now at $10 or thereabouts. president trump tweeting just a few moments ago earlier today, promising a plan for relief to energy companies and their employees. we will never lets the industry down i've instructed the energy secretary to formulate a plan. with us is andy lippow welcome to both you have katie, let me begin with you after yesterday where the oil contract closed settled at negative 37, bryant sullivan was making the point, something is broken here. is the market broken or much as we may not like to see it and

say it, is the market working just the way it ought to be working given the glut of oil. >> thank you so much yes the market is working. we may not like it very much the storage problem we all have been talk about so much but the u.s. running out of storage, that problem is already here for the commodity market this is what the market working looks like we saw it in extremely low pricing today. perhaps, andy, we'll stop

letting the market function quite the way it has been and there may be some sort of intervention here. talk to me about that. what kind of intervention might be effective other than a drastic cut in oil production. >> the market is so over supplied during the month of april and the opec action is too little, too late they decided to convene a task force to research into the problem that's being experienced in the oil patch

this would display where saudi crude oil went it would then go to asia or europe and the u.s. would back filled with other resources. what it means is there would be no change in the overall supply dynamics in the overall market i agree with your other guests that the market is working it's telling the producers there's too much oil you need to cutproduction. we're seeing that first here in the u.s. and canada but this is going to actually spread to members of opec plus >> how do you cut production as dramatically as it needs to be cut. hold up do you cut production without costing maybe tens of thousands of u.s. jobs >> that's such a good question it's one we see policy makers struggling with just as andy noted. the texas railroads commission meeting today and really

reluctant despite a lot of leadership from commissioner to try to push the regulator towards a more aggressive assistance really reluctant to take that first step to scale back we think the u.s. federal government has some authorities and some powers. we've had a lot of discussion around purchases of crude for this strategic petroleum reserve. we sdroents a lot of cohesion in the u.s. this gives a challenge for the u.s. oil industry. there's so many different voices, so many different

interests. it's hard to pick a path forward. >> one interest, andy, is those oil tankers stocks which kelly just showed, i believe it was kelly. maybe it was bob showed we're going up to today because they are carrying oil from production sites all around the globe >> many of them are on a voyage to nowhere we're seeing this on the kruds oil side where it's been reported carrying 160 million barrels of kruds oil are just sitting around with storage options. that's probably going to increase over time.

a refinery in turkey has charted a large tanker to carry jet fuel and diesel fuel. jet fuel demand worldwide is probably off 80% kelly, i'll toss it back to you as some really serious weather blows through northern new jersey >> if we lose your shot, we'll know why tyler, thanks. >> it's working. >> i want to see it roaring. i can see it roaring in the background you're right coming up, after that tweet from president trump about possible relief coming to the energy industry we'll be speaking to the energy secretary later this hour. you won't want to miss it. a will the of questions for him and what support could look like turning back to market which is are selling off for the second straight day. if oil sinks in the single digit

how big of it for the market. if we look at the percentage of energy, it represents a small percentage there are other affects on the markets. this has been a punch to say we have more to be concerned about than the coronavirus which has been a large concern we have seen demand cometo a halt that's where we are. >> what's your advice to

clients. what should people do. do they look at energy like some have suggested and say this is a historic investing opportunity or say here is how to protect yourself against exposure and do something totally different? >> we just experienced a bear market rally after the bottoms we experienced in march be we believe we are in a cyclical recession. more like a w than a v shape recovery with that, more likely testing lows again in the market be ready for the down side with that, we see there are buying opportunities and we're looking for those buying opportunities in the areas that we like. areas that we liked since before the coronavirus, bc, as i would say. that's areas like health care continue to be strong.

>> are you going company specific talk to us about how you pick winners. >> i think we're looking for long term secular growth it's no surprise to anyone that what we're liing through right now without question will have an impact on consumer behavior and business behavior. there are going to be companies that will make profits there's sectors that should fair out better than others what we're trying to do is exploit those inefficiencies in the market and long for those long term secular growth themes to add exposure to them. we really cannot forget or neglect just this unprecedented amount of monetary and fiscal

stimulus there are a number of unanswered questions out there. the shape of this recovery once we get there the stimulus will be support iv aspects. >> your favorite investment right now is in. >> overall we have a pretty significant overweight to the united states. if we take that one layer deerp and look within u.s. equities, we favor technology and added more exposure to health care these are areas of the market that we believer are likely to see some long term growth and represents some opportunities for long term investors. >> thank you both. tyler. the snats is expected to vote on additional fupnding for

the payroll protection program he's get on the latest of the state of negotiation and maybe the voting >> we are still awaiting the full legislative text of that deal reached between the white house, treasury department and both parties in congress to expand this stimulus package that was passed last month this is what this nearly $500 billion expansion entails. it includes about 250 billion dollar added onto the existing paycheck protection program and additional $60 billion that would go to small lenders. it's less than 10 billion in assets between those and 10 and

$ $50 billion. 75 billion for rural hospitals and 25 billion for testing which $11 billion will go to states. the top senate democrat, chuck schumer suggested the senate could vote on this package today. my sources have not said that it's certain this will be brought to the floor when senate majority leader mitch mcconnell opens that proforma session at 4:00 p.m i additional funding for ppp hospitals and testing. he says they will begin discussion on the next legislative nishtsive with fiscal relief. we'll see what that entails and which industries it's designed to support tyler and kelly. >> thank you very much coming up, despite crashing oil prices, energy stocks have been holding up relatively well

today. they're down about 2% or thereabouts. financials and tech stocks are the bigger decliners today we'll have more on that later. the real estate market getting swept up in the coronavirus pandemic home sales prices under pressure noble black will be here to discuss the fall out right after this quick break life isn't a straight line.

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welcome back home sales are starting to feel the pain from the economic shutdown and it's just getting started. diana has the details for us >> reporter: after the strongest february for home sales in over a decade, march sales fell a wider than expected 8.5% for month and the worst is yet to come deals that were inked if late january and february when mortgage rates were near record lows but a lot of those deals were cancelled in early march. adding to the problem, sellers

started takie ining their homese the market supply fell over 10% annually to the lowest march level in the history of the vary. the only bright side to that is it could help support prices which jumped 8% annually many march. price gains will weaken as whatever buyers are out there, lowball on their offers and desperate sellers oblige despite agents doing virtual live tours, they said we could see sells drop 30 to 40% another analyst said home sales will drop 50% from q1 to q2. >> ugly. there comes as we have some pretty bad news for the mortgage market today there's relief for servicers dealing with millions of mispayment but the potential of disruption to the rest of the industry making it harder to get a loan what are the details there >> reporter: we found out that mortgage servicers will get a bit of help on those payments. more than three million

borrowers are in the government sponsored bail out they can delay payments up to year but the servicers have to make the payments to bond holder fannie and freddy said they only have to make the payments for four months, not the usual year. that's some relief if things get worse, if we see the share of borrowers in the program jump to 30%, even four man months of payment would be hard especially for the non-bank servicers. this is kribtsi ingcontributing tightening in the mortgage market it's a lot harder to get a loan now. >> absolutely. >> sorry, there. as americans continue to deal with this pandemic in effort rs to social distance, would we see a shift from crowded cities or suburbs or even further out. with us is noble black i want to get to that question

of whether cities will be in such high demand as they have been over the past decade or so. you heard several points one was the up tick in the number of deals that are dying on the vine is higher. i'm aware you play in a specialized sliver are you seeing deals die sellers pull, prices soften? >> thanks for having me on what i can tell you based on new york i heard the data points. new york is a bit different. most of our deals have a 10% deposit. we're not really seeing deals die on the vine. we're seeing a lot of buyers wants to renegotiate before closing. if they have gotten to the closing table, the day before,

they are wanting to renegotiate 3 to 5 to 7% off they are not walking away. they are thinking the market has not declined more than 10% that's been the case >> let me stop you right there if i might that's interesting that the buyers are coming in at closing or right before and saying i want to negotiate. are sellers then willing to negotiate? >> it's case by case i will tell you we have had buyers that have closed without negotiating and we had some that have been very aggressive. i was speaking with someone earlier today. they had a deal that's in contract for 11 million. the buy was wanting a million tlars off and the seller said absolutely not neither party was in financial distress we'll see what happens it's really just up to each buyer and seller i think a lot of sellers want to get the deal done and have some security and move on it depend ons the discount that's being looked at for the most part when it's

being asked, what i understand from when i speak with people, we're probably seeing that about half or slightly more. when it's being asked there's something that's usually reached. again, it's in that neighborhood of 3 to 5. maybe 6 or 7%. >> let's get back to a couple of the other questions i began with are sellers pulling their listings because they don't think this is a gds tiood time sell what about new buyers? can i imagine you're still servicing the buyers in market in february or march who may still be looking are you seeing any new buyers come in? seller delisting, new buyers coming in. >> sellers are delisting or what they're doing in some cases is leaving it there but recognizing they may delist depending on where we go from here. if somebody makes a deal they are okay with, they are fine with that. if they're not in a position where they have to sell, then they -- many are delisting and

waiting until the fall or giving themselves another year. we're seeing that. we're seeing more of that. obviously as we get further into it it feels like we have been here for a lifetime but it's only been five or six weeks we're still seeing that play out. your second question >> new buyers coming in. >> not really new buyers totally new. for the deals you're seeing are the real activity, it's people that were already in the market. they may not have identified a property but there's definitely some tire kickers online people asking about virtual viewing. >> thank you i'm a perpetual tire kicker as a lot of us are. thank you for your time and insight. >> thank you for having me >> good stuff. still ahead, the oil market is set to close in just about two

and a half minutes time. let's check on the trading action we're seeing a rebound of wti may and june contracts are both above $12 a barrel this action has been all over the place. we're down in single digits about half an hour ago we'll take you through this historic close after this quick break. will the government step in to bail out the energy industry amid this carnage? president trump tweeting there will be relief and the energy secretary will join us in a few moments. stay tuned there's tv. and then there's x1,

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, everybody. let's get to sue for an update on the coronavirus hi, sue. >> hello, every one. here is what we know at this hour illinois governor is criticizing president trump for his liberate

tweets aimed at several states with democratic governors and stay at home orders. he called tweets a political maneuver that are fomenting protests the uk health minister says the government is providing extra funding to help develop that vaccine. >> in mnormal times reaching ths stage would take years i'm very proud of thework take so far at the same time, we'll invest in manufacturing capability so that if either of these vaccines safely works, then we can make it available for the british people as soon as humanly possible >> back here in the u.s., new york city major bill de blasio says he's planning the greatest of all parades to honor health care workers once restrictions on mass gatherings are eased

he says it will mark the beginning of our renaissance we certainly hopes that come soon back to you. thanks very much the oil market is closing up for the day and this is the story of the day, the week, the year maybe. it's a wild ride the may contract expiring and rebounding while the june contract, which will soon become the front month, the active one is plummeting down nearly 50%. why up at 12 now >> the may contract, yesterday it seemed there was plenty of tag along shorts that came in thinking the race was oun which clearly it was today i think we squeezed some of those people out today. it has much more dire reflection of the economic condition is the fact that the june contracts off eight bucks today.

it was knuckle head people who kept longs on too long that i understand were getting chased out at the end because they shouldn't have been long it was kind of somebody else problem. we could be in a bunker looking at it. today when we see the july and june trading the way they are that's reflective of a problem we all share >> what happens next >> the etf part of it is an interesting thing. when people talk about the etf, they talk about uso. uso didn't have may contracts. this is my understanding is they roll into june two weeks before expiration they only keep 80% in june and have 20% in the july as to not be messed up by sochl these things that happened they're probably still going get messed up if they start dragging june lower i do wonder sometimes as we move in that direction if somebody trying to force somebody else's hand i'm not certain that's

happening. i don't like to think there's somebody anefarious going on to me, that could be possible. i've talked to a lot of smart traders and every one was like this trade is easy june will follow suit of may when everybody get ons board like that, it does open things up for potential short kweez we already traded up from eight bucks to 13 bucks. now we're back at 11 i do think one piece of good news comes out and there are a lot of shorts on the market. i'm not saying i'm an oil bull i'm just saying that's where the risk lies. >> stay right there. i want to bring bryan sullivan in to stick a pin in the discussion we've been having all day about these contracts. >> give me a question and i'll answer it, i guess i've been working on these etf stories for about fsix months

this is what everybody feared. i'm not saying specifically with the uso and be clear on that what we're seeing the the market reacting to concerns about potentially ill liquid products or whatever it might be whether it's a bond etf, a lot of questions out there. the uso, this oil fund, just moments ago, it's halted again moments ago diversified into july and august. they had to do that because there was a lot of questions out there floating around. what happen ifs the june contract went negative the mechanism will go to zero. kelly and tyler and jim, they owe 25% of the june oil contracts. would they have to literally, with the clearing house or the

ice, would they have to pay out. >> jim, last word. >> it's not going to be the person who paid three bucks if you're in the margin count i don't think it's possible for the brokerage house to come out. somebody will have to eat it i understand why the panic is. it never seemed like there was a mechanism built in to handle this this is crazy the today is crazier than yesterday >> we'll say good-bye to you and appreciate your thoughts bryan we'll have you stick around for this next discussion. the president tweeting about the oil collapse writing we will never let the great u.s. oil and gas industry down. he said the secretary of energy and secretary of treasury to formulate a plan that will make funds available so the jobs will be secure.

joining us is energy secretary dan brouillette >> thank you we have been watching this all day as well. just an extraordinary time for us to be watching the oil markets. we'll be meeting with secretary mnuchin later today. we'll be formalizie ining some h thoughts i don't want to get ahead of the conversation woin i won't be making news here. we'll be looking at the facilities created we'll be meeting later too discuss this >> is the energy exclaudsed from this we just talked to a texas bank ceo who said he's in san

antonio. only 3% of his loan requests came from energy clearly energy could take some part in this the mainstream lending program from the fed, is that up and running yet and could energy take part in that. i don't know they are being specifically excluded. we want to ensure they are to the extent they can be included. with regard to bank loans and things like that, we want to ensure they are not being discriminated against in some respects we had some banks, we already heard some stories about banks who don't want to lend to fossil fuel industry players. we want to make sure that doesn't happen this entire industry needs to come back and make it through this pandemic because as you all know from your conversations not only with the industry but with other market players, energy underpins everything we do in

the economy. >> i think people often overlook if we don't have a strong industry with low prices it will exacerbate the people who need to spend a very low amount on that won't be able to. they'll have to pay more let me read you an e-mail that came into my inbox says no to oil bail out. at some point the bailout vs to stop people are not only tired about bailouts but especially because this is oil and gas think it's not deserving. we're making the nation stronger by filling the upper strategic reserve in a time it makes economic sense to do so.

the byproduct is it allows some producers in the u.s. market to store some of this oil as we talked about a minute ago, one of the challenges we're seeing all across the market is there's no place to put this increased production if we can alevleviate some of tt for this industry then we should do so. it benefits the industry but it also benefits the nation it makes us more energy secure >> bryan >> mr. secretary, appreciate you coming on. good to chat with you again. two questions. under what treasury or fed program are you guys discussing any aid? would it be secondary market, would it be something else when we look at energy, you referenced the etf

has there beenfully high level discussion about any kind of etf aid program. should we see numerous contracts slide negative and major etf become in trouble? >> too early to tell i can't get ahead of the secretary. we haven't had a detailed conversation about this. we'll start later today. with all due respect and with your forbearance, i'd like to pass on that femaquestion we do want to understand what's happening in the marketplace i don't have any perfect answers. this is an extraordinary event i don't know of anyone, at least in my circle of friends or circle of influence who has ever experienced anything like this we're all learning at the same time >> bryan, do you want to ask a

follow up? i have one more. >> i just received a text message from austria and wanted to know if you have any message from opec? >> message for opec. we'll continue to work with them we had some good conversations over the course of the last three weeks. we were successful in getting them to back away from some of the announcements they made in early march to increase production in which the pandemic was beginning to take effect we're going to continue those types of conversations we'll continue with the acent l australians. we are working closely with the doctor who heads up the international agency in paris. we'll be working with them to see if there's other part ners arou -- partners >> is it about the oil prices in

the country legal? we spoke with the texas commission who said they would be willing to prorate or cut production if it's in conjunction with north dakota, with oklahoma, with canada listen, i know we can kind of bend the rules to what we think is a vital importance here but is there any chance that all of this discussion would be against the rules, so to speak >> the antitrust rules are clear. we're not going to engage in that sort of conversation. with regard to state regulators, the texas railroads commission being the primary example of this, there are state laws that allow states to take individual action that limit the amount of production whether they can do it in conjunction with other states remain a bit of a murky area

whether or not they can collude to set a price that's a pretty gray area. it's not something that most americans would want to see occur here in the united states. >> what do you think the most likely form of aid to the oil and gas industry is. they use existing facilities to gain aid like anybody else or is there more targeted support that you would consider >> i think the having access to what congress has already passed is the most logical step forward. doing the thing wes can do either through the u.s. department of energy working in con serts can our partners at the department of interior other places where we might be able to expand alleviate some of the immediate pain we worked closely with congress

to see if we might be able to expand the structure of our strategic reserve. we are authorized to store up to 1 billion barrels of oil there we'll work with them closely and see if there's any appetite for expanding the storage capabilities >> the government trying to buy low, maybe sell high thank you so much. >> thank you for having me >> bryan, thank you for chronicling this incredible couple of days tyler will tell us what's coming up sure, i'll tell you what's coming up. netflix having a bit of a stealth rally in april probably list on both handss the number that's up that much the company getting set to report earnings after the bell we'll tell you what to expect and remember you can always watch or listen to cnbc on our cnbc app our special breaking news coverage of markets in turmoil and the coronavirus will be right back i know that every single

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welcome back let's give you a quick check on the markets. the dow is down a hair under 600 points or about 2.5% at 23,062

for change of pace it's the nasdaq leading the sell off. it's usually not been that way as tech has been under performing you see the nasdaq down more than 3% right now. take a look at the banks they are the second worst performer on this down day as the energy fall out hits that sector as well they have exposure in the energy area mike mayo will join us for more on the stats of the bae of the s the stock we are watching is netflix reporting earnings after the bell the streaming stock heading into the release up 36% so far this year let's get more on what to exp t expect what's the number one thing you'll be watching from netflix after the bell >> probably the reaction i believe that netflix will report an outstanding quarter.

they've been a huge benefactor of everybody staying at home before the virus even transpired the company was looking for seven million new users in first quarter. we wouldn't be surprised to see that grow even more than expect. but the stock already has been, you know, priced in our opinion, this move. up 30% year to date, a hiding spot for managers, and we honestly we would take any strength after this announcement to be a seller of the stock if somebody invested and owns this name here. >> mark, sizing up the chart, you say there are some warning signs. what are they? >> i think the stock actually looks quite attractive, seema, technically. it had been basing for almost two years before it broke out last monday on very heavy volume so, you know, at a time when very few stocks are above the 200 day moving average, only 12%, not only is this one above 200, but back at all time new high territory it is good to find the stocks showing good relative strength during times like this if anything netflix is the new

infrastructure play like quint said this is one i want to own and it is always dicey to weigh in before earnings, but in general, any sort of pullback in this stock down to 400 would make me want to look into buying into it 393 to 400 is an excellent risk/reward it buying netflix. i like it. i think it will push up to 480 in the months ahead and potentially up to 533. it is one of my favorites technically on an intermediate term baseis. >> got it. stock at 437 mark and quint, thank you. more trading nation head to our website or follow us on twitter. tyler and kelly, back to you. >> all right, seema, i'll pick it up, thank you very much the oil collapse taking energy stocks down with it. the sector down nearly 50% so far this year. some of those companies, though, are just not going to survive. down 50%, forget about it. go to zero how will that impact the banks holding those companies' debt? well, that's next. stay with us >> and now the latest from

tradingnation.cnbc.com and a word from our sponsor. >> overbought and oversold indicators are generally used differently depending on whether the stock is range bound or trending look to buy a range bound market when an oscillator such as the rsi falls into oversold territory and then moves back above it look to sell a range bound market when the oscillator rises into overbought territory and then drops below it. i'm lee bohl and schwab is the better place for traders

welcome back it has been a bad week for energy but a tough week for the banks also the kbe down more than 40% so far this year. and it could get even worse.

our next guest says the dramatic decline in oil could keep the banks in, quote, earnings hell through the second quarter for more, well maybe not, i guess we got to do this, mike mayo is here, senior bank analyst with wells fargo security earnings hell. what does that look like, mike >> well, you had earnings hell in the first quarter for the banks and it looks like there will be more earnings hell for the banks in the second quarter. you had the three rs, you have a recession, and consumer spending is down one-third by some estimates, so if the economy is 60%, the consumer, that's gdp down 20% off the bat that's hard. you have the second r, reserves, and you need higher reserves for problem loan losses, which we have going up two to three times. you have retail, restaurants, hotel, airlines, healthcare and, yes, energy as you mentioned and the third r would be rates there is no escaping the negative impact of the fate --

of the fed rate reduction. so that's earnings hell. that means it is a harsh recession, we lowered estimates now five times since earlier this year. and it is going to be just some tough time now, there is different scenarios for getting out of this we are not modeling a b recovery we are not modeling an l, which would be recession plus japan. but we are modeling a deep u recovery now, there are some mitigating factors but i'll pause there because there is certainly some bad news. >> i think more and more of the folks we seem to be hearing from are in the camp of a longer recovery rather than a quicker recovery the banking world is a big one it has lots of parts and subparts where is this wave of trouble going to crash the hardest,

which companies, which types of banks? >> well, what is interesting here is, you know, goliath is winning, the larger banks seem more resilient than the rest of the industry that's a change versus the last past half century. you look at the largest banks, number one, there is a huge war chest and this war chest is you have the biggest buildup of reserves for problem loans before recession in history. they have enough reserves to cover one half of the losses that you saw during the global financial crisis second, the government has a kitchen sink effort to revive the economy. you're seeing more proactive regulators, treasury, congress, you look at the fed increasing its balance sheet and additional government debt over a year or two, that could be $10 trillion thrown at a $20 trillion

economy. that's pretty powerful and they need the largest banks to help implement that you look at the resiliency, operationally banks, the largest banks are open for business, three out of four employees are working from home, the largest banks were stepping in, doing their job, you're seeing a flight to quality benefit, the largest banks have deposits and loans up 6% to 7% in the last three months by the way, the fixed income market supports this view of resiliency in fact, you see a dichotomy between the equity markets and the bond markets the equity markets say that the sky is falling and banks are in deep trouble, where as the bond markets say the banks are pretty fine, just like any other company. so i find that fascinating, actually and, remember, tyler, during the global financial crisis, the bond markets got it right and the equity markets got it wrong. we'll see who is right this time it looks like the fixed income markets could be right but that's not what the stocks are

saying today >> mike, thank you very much we'll be hearing from you again over the next few weeks, and we appreciate your time today kelly, some final thoughts here it does seem as the dow is down close to 600 points for a second day in a row that there is a kind of descending feeling, even in the face of what could come out of washington and agreement there, maybe a vote later this week to pump some more money in, that struggling out of this slump is going to take longer and be a little bumpy than the v-shaped recovery a lot of people were hoping for. >> no question, you know more than 2 million u.s. june crude contracts were traded, tyler, today, that's the biggest day for the contract in history. there is huge demand for this. i thought we heard from the energy secretary a few minutes ago, so interesting, we said if texas coordinates with north dakota and oklahoma, maybe canada on production cuts, is that even legal? he said it is a gray area, we don't know so much of this is unchartered

waters >> yeah. everybody kind of wants to do the right thing and we're all like a person with a blindfold in a dark room, feeling our way around because this is a kind of territory we have never been in before kelly, great to see you. see you back here tomorrow. >> hope you weathered the storm. >> thank you for watching. yeah we did just fine. our breaking news coverage continues right now into the last hour of trading with the folks from "closing bell." see you tomorrow >> thank you kelly and tyler. welcome, everyone, to "closing bell." i'm sara eisen with will fred frost. stocks are sink once again with all eyes back on the energy market for a second day in a row. let's look at what's driving the action 59 minutes left of trading historic moves and dislocation in oil as prices plunge. the may contract just closed and now we're seeing june and july sinking as well to levels we haven't seen in decades. congress appears to have a tentative deal on funding the small business relief program. and corporate earnings continue to rattle investors as compaes