>>that's what it takes for jcp these days thanks very much we appreciate it that does it for the exchange. thank you for tuning in. don't go anywhere. i'm joining tyler for power lunch, which starts right now. kelly, thank you very much we'll see you in a moment tlat they let me out of the kitchen the dow industrials down more than 1500 points at one point earlier this session right now down about 1441 points it's coming off the feds bleak outlook for a recovery and on rising fears of rising coronavirus cases in a host of key states, including e ining f, texas, arizona boeing down 11%. exxon and jpmorgan getting hit hard these were three of the names that helped power the dow's rebound over the past month. you can see them there down 7, 6

and 10% respectively snap announcing a new partnership to increase user engagement and add revenue the co-founder will join us in a few minutes for an exclus iive interview. the dow is on track for its biggest drop since march bob has more on this sell off for us bob. >> the whole reopening story a little bit under debate right now. the important thing is, the reopening stocks the industrial, the fin tech names, the energy and oim names. all moving to the down side. boeing is still up 24% this month even with this decline it's been a monster. jpmorgan, all banks, weak, caterpillar weak these stocks had very big moves. i want to show you the big etf movers today we're getting double digit declines with some of these energy names the jets have become a super star down big today banks also weak and the pej

which is a leisure sector very weak here. the reason we're having this is because these were the sectors that moved up the most in the last month i want to show you, can you explain to anybody, we have hard time doing this. why airline stocks went up 80% in less than three week period culminating on monday. oil services, 70%. bank stocks 50%. leisure and entertainment up 50% in a three-week period culmin e culminating all this topped out on monday at the close let's remember what's moving stocks the valuations are frothy. that's what's moving things today. maybe it's not a v but what is it it's not clear the fed throwing that whole thing into doubt and that's the big debate guys, back to you. >> thank you, sir. let's flip over to the bond

market now where yields have been under pressure where fed chair powell spoke rick has more. rick, go ahead, sir. >> yes, matter, it isn't just from yesterday every single day this week yields have dropped from their peak on friday on the jobs report look at a week to date chart at 666 here, we're down 7 on the day and it's never a good yield to be at 666 if do you look at a 24 hour chart of 30s, we have the auction today. i graded a bit below average here at 142 we're down nine basis point ons ts on the day what's really interesting is it is this big demand it wasn't at big demand at the auction. here is a 24 hour chart. it really has been bouncing around it seems to be now above those two twin peaks there there's probably some short covering going on because if you look at the chart and open it up, we're getting a nice bounce off of three month lows in the

dollar index and it's back in positive territory for the year. tyler, back to you thank you very much. stocks tanking after what has been a fast and furious rally over the past month. fears over the economic fall out over the coronavirus front and center for wall street for today. here to make sense of it august is russ. great to see you is this a case of the market really reacting to the feds sort of pessimistic view or the idea that the economy is not going to come back quickly and heightened cases or is it the market looking for a reason to sell off? >> i think it's exactly the latter what the fed said to my mind wasn't overly pessimistic. it was realistic we know this will be a difficult recovery this is unprecedented, shutting down an economy the way it has you can't turn a switch and expect it to come back overnight.

i thought the fed's comment wrs dovish they are going to buy assets i think what's happened exactly as you point out is there's exhaustion and two, there is some concern about the pick up of cases we have seen in places like arizona, in texas and california which calls into question the case at which the lockdown can be eased. >> i guess i'm hearing you say that you're not personally convinced this is going to be a v recovery you and are next each other in the alphabet does this look like a saggy v or a sharp u? >> i don't know. i've heard the square root i'm running out of letters i think it's probably in the saggy u category to get a v shape recovery not only would you need a very quick reopening, you'd also need that consumers will come back very hard now, we think the u.s. consumer is in decent shape they went into this crisis with

a much better balance sheet than in '08 there's been a lot of damage to small and mid size business. it was always unrealistic to expect the economy to snap back when so many industries from restaurants to hotels, airlines, leisure are not going be able to operate the way they did before the crisis for some time >> there's a lot of job loss, needless to say there and incomes that have been impaired from otherwise less hours work and so on and so forts if you had to choose between growth stocks and value stocks, it would seem that growth would have an edge at this point >> i think that's right. i want put a bit of a nuance on that i think it's about profitability and consistency. if you look at what's been doing well and you have the evidence again today. part from the last three weeks when investors and a lot of small investors, a lot of retail investors chasing the most cyclical names which worked

those companies that are likely to prove resilient because they are profitable, they have clean balance sheets and able to deliver consistent earnings. most are in tech, communication, health care. there are industries that were going fast before the crisis and for some of these companies the crisis may even accelerate some of those trends. >> one of the things interesting in my notes is you indicate you think there may be a short term play in europe why and where? >> so europe is interesting. i think the rebound in europe last few weeks has been very much tied to the rebound in value. we do believe there's a couple of reasons to look tactically to europe one of which is buy in large we see a lot of inexpensive companies there. second of all, countries like italy, for example, will benefit from the increased fiscal coordination that we're starting to see france and germany a few weeks ago. as we saw last week the ecb is getting more aggressive which is

a tail wind. to be clear, we still like the u.s. we're over weight the u.s. europe is more of a rent than a buy. i do think there's an opportunity in european equities >> thank you as always great to see you kelly. as the coronavirus took hold of the economy and the markets in first quarter, we just learned that household wealth in the u.s. dropped 5.5%. steve has more on that story for us >> thanks. households took a big hit from that downdraft in the market that's a record for a single quarter. in fact, it's double the prior two records combined of $3 trillion each. what happened, equity declined by $7.8 trillion we got a bit of that back in reality. maybe we get 400 billion in real estate federal government debt rose by 14.3%. that's the most since 2011

business debt also rose as companies tried to raise funds to liquefy themselves up 18 points the most since 1973. tyler was asking about shapes and letters. look at that little v to the left there in 2018, that's the fourth quarter. we got it right back right way in next quarter and go to the other side of the chart looking at the change in household net worth. that's 2008, 2009. that's five years. that's a long u getting back very quickly, powell said the world uncertainty 11 times in the press conference it's something he's emphasized before that. he said markets are trying to price in something so uncertain which is the path of this virus globally and its effect on the economy. that's very, very hard to do i think today is the day the market seems to be embracing some of the possibility of an uncertain outcome. >> steve,how much would you trace back to feds decision yesterday to the press conference

when we were covering that, the markets were pretty much rallying in response this has been a pretty big turn around over the past 24 hours. >> if you go back where the fed staff said there's an equal probability of this thing going away and of a second wave to this virus powell's been trying to pound this idea that the outcome, now you can seize on the idea the outcome will be very negative but his emphasize has been on how uncertain the outcome is yesterday you saw how negative people think it will be. the four fed board members when it comes to unemployment remaining 10% by this year and a two year time horizon it doesn't get back what we had before the

virus. >> exactly steve, thank you steve with very latest from the fed. tyler. >> steve, just sort of froze right there, didn't he just kind of stiffened right up there like one of those fish he catches. >> he doesn't know i can still see him too. coming up, we'll are more on the market sell off. the dow is down 1500 points right now or thereabouts with energy, financials and material those are your worst performing sectors. snap launching a number of new features for its messaging app. as business moves forward,

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welcome back you can see the dow down at new session lows we're just down about 1550 it's a 5.7% decline for the blue chips and it's been weakening throughout the afternoon moments ago snap announced the launch of several new partnerships for its augmented reality and map features that's in other words to increase user engagement it's the latest move in social media to grow ad revenues. julia is with the co-founder and ceo of snap. >> thanks so much for joining us today on the heels of your big presentation of all those

partnerships >> thanks so much for having me. we're so excited about all the products we have announced and so grateful to have this opportunity to celebrate all of our partners that deliver so much value to snapchat community. it's been so much fun collaborating and working together with so many talented teams across the world >> you really announced range of partnerships with brand, media companies and other apps some people say it looks like you're traying to transform into more of plats foform or we chat. what is your vision for how you're transforming snap and how it will help you better compete with facebook and instagram. >> really what we're trying to do is better serve our community. our content business grew out of this desire that our community had to learn more about the world. we were able to partner with so many talented publiceshers and people developing shows to serve our community that way when we started building our map, people wanted to flieblg

the map was personal so many maps have been used to get from a to b. now we're bringing local businesses into the map because our community cared so much about the local businesses we felt like that was an important way to create value. as we look to things like minis that are kpietsing new extension of our platform, we believes that snapchat helps friends connect to one another and do activities that they wouldn't be able to do on their phone. we follow snapchatters lead. we're doing our best to serve them >> just to go back to your comment about the potential for small businesses that you're bringing onto your maps

platform, what's the potential for advertising and going after ad market share that's been dominated from the likes of yelp and facebook that's talked a lot about its investment >> we're really just getting started there. this is predominantly about bringing local businesses on the the map and helping them advertise their hour, website or menu or help people order online this is the foundation we're trying to make it easy for local businesses to advertise. if you're local business owner, you can log onto our manager and type in name of your business. we'll auto fill that places profile for you to make it easy to create a snap ad. local businesses working on reopening, getting back up and running after being shutdown for such a long period of time, they feel like they have our full support. >> evan, there's been a lot of talk about your decision that you announced that you will not be promoting president trump's account within your discover platform drew a lot of blow back his campaign adviser called you

radical and said you were trying to rig the election for his opponent what's your response to that allegation >> we always said discover is a closed platform and we choose the type of content we want to pro mote we're well within our first amendment right to decide what shows up on there i think it's a relatively easy and straightforward decision and we'll continue to try to create a discover experience that reflects our values and promotes content we think is important for our community to see >> social media has been in president trump's cross hairs. he has a essential media order to threatens to limit company's ability to centusor or flag content. what do you think of that? >> i think what you're talking

about is the proposed changes to section 230. it was designed to promote free speech it true trooied to allow platforms to take the steps necessary to create a safe environment, try to remove content that's violent or threatening or create place where speech could be hosted freely and not hold platforms accountable for speech that individuals make on that platform the thrust was to protect and promote people's abilities to speak freely on these technology platforms. i'm not sure, frankly, how these changes that are being proposed would impact section 230 i think it's important to reiterate the first amendment. there seems to be some confusion about the first amendment and who that applies to. it's very specific it's designed to protect individuals and private businesses from the government i think the really interesting thing here and you're seeing lots of businesses and brands exercise their free speech, for example, nascar said we don't

want our fans sthoe up with con fed rat flags. that's another example of a private business exercising their right to free speech on their premises snapcha snapchat, we embrace those rights we want to use our first amendment rights to stand up for things we believe in >> you wrote this memo this week it's very impassioned about racism and diversity in this country. what should we expect for from snap on that front this is something that is very important to you >> yes, it's something we have been investing in for a long time as a company but also as a family and it's an issue we care a lot about. america has a long legacy of racism really starting before the founding of the country when slaves were brought here to this country and so we think it's really important to knowledge that history and apologize for that and really make steps forward here to create a country that lives off to its ideals of freedom, equality and justice

for all. some of the things we're doing inside our business, we're very focussed on improving representation overall both in the short term but also in the form of longer term investments on things like education and other programs to help underrepresented talent in our community. we have a thing called the snap design academy where students from all over from different backgrounds come in and work with the snap design team and we partner with the royal college of art which is one of the best art schools in the whole world to produce this program. two of our graduate, i just found out yesterday, got into an rca program. that's an example where we're trying to invest over a longer period of time to create more educational opportunities and therefore improve representation overall in the tech and creative industries i think that's really important. i also think it's importance to create an inclusive culture on your team and workplace. we have something called counsel where we encourage people to sit

together and share perspectives on how they feel that's something we had in the early days when it was just six or eight of us i think it's important for all of us to work together to invest in some of these longer term initiatives that we know pay tremendous benefits down the road >> should we expect more from you in term of the makeup of corporate work force >> it's definitely something we have talked about. we want to make sure we not normalize that representation. it wouldn't surprise you that snap chat looks like most other technology companies in terms of representation we think that's bad thing and not a good thing we're trying to do is release the numbers internally we have seen some short term competition rather than a collective effort to i vest.

we're really focused on these long term representation i've been worried some of these normalize and we're inventing a mu way right now to release the information and make it clear about the plans we have to include representation at snap and more broadly in the industry >> i want to come back to the idea that you're going to no longer promote president trump's account in discover, which is something you apply to others as well what is that mean in practice that you will no longer promote his account, number one. i gather you reached it not he or his team posted on his discover account but based on things he's said in other venues or on other social media accounts tell me why that becomes germane to this decision and then, third, were there specific things that led you to this decision specific comments. >> when we built discover a long time ago we felt it was an important need to choose the different content providers that

we wanted to work with to provide a great experience for snap chatters. they really expect that from us. when they go to discover they expect premium content and that's an area we really invested we're so grateful to work with many publishers and journalists around the world from the beginning, we had a lot of guidelines about the types of content we wanted to promote in discover we have rules about off platform behavior that influence our decisions about who we promote in this particular instance, i think, it wasn't just our perspective. i think it was a widely held feeling across america former president speaking up, the jarm chairman of the jointsf of staff talking about the comments the president made against fellow american citizens i think that upset people across the country. is this really the type of behavior we want to promote in our discover section the president still has an account. he's active on snapchat but we don't need to promote him on discover to our audience because

those sorts of statements don't reflect who we are as a business or types of content we want on our platform >> can you cite one? >> yeah, one of the statements in particular involved threatening to shoot looters nap was something that troubled us another one involved ominous weapons and i think those sorts of statements don't reflect our values or the types of content we want to promote >> thank you >> evan, just shifting back, a final question about some of the augmented reality tools you announced today you've been investing in you opened up your augmented reality developers, now anyone like nike or mlb can use your ar tool on their own app separate from snap. what do you see as the opportunity for augmented reality now especially as more people are staying at home do you think it will be a more useful tool for companies and

for advertising since people aren't out of the store shopping >> there's a lot of excitement around augmented reality some of it is in home and some will be in stores as well. stores are rethinking how people try out their store. they want to reduce the amount of things that people are people are picking up and touching. i think ar can play an important role camera kit allows businesses to bring our full feature really powerful augmented reality software directly into their applications it's something we're really excited about. we think this will empower lots of brands to experiment with this new technology on the snapchat platform but in their oin services i know at a time right now when people are really being creative and innovative with the way they are reaching their customers given how dynamic and challenging the situation is, we want to be there and support these brands and businesses in those explorations so they can continue to grow their

businesses >> a lot going on at your company. thank you for joining us really appreciate it back to you. thank you very much. still ahead, check out the big banks. after leading the recent reopening rally. the traders will tell you what to do with those name, now as states reopen, the number of coronavirus hospitalizations and cases are rising in a number of places including arizona, texas, florida and california. we'll talk to a top doctor in arizona about what's behind the spikes reow lchs xtmo perun ine ♪

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welcome back banks among the worst hit in today's sell off after fed chair jerome powell said rates will stay low through 2022. all sharply lower. your trading nation team today is bill baruch and john petrides we have been living in low rate environment for many years now what happens if we have two more years? what does it mean for the banks? >> i think the sell offs in the banks are a bit over done. most are trading at a discounted at tangible book value the fundamental question i ask myself is this, since the financial crisis, the federal reserve has been stress testing the bank balance sheet under very draconian rules. pretty such since 2013, even since the -- under the stress

test the banks have all passed why do we have this massive concern on the bank side on the balance sheet side if the banks have been able to pass the stress test. i think a current valuation makes sense to add to the banks. >> bill, what's the best stock in the bank space right now. >> i do want to talk a little more broadly first ultimately, the sector failed against the 200 day moving aver raj. what we're seeing is a move down to support today i think the sector is finding support to retrace in prooefevis highs is 23.5. i want to be a buyer until about 21.5 you're starting to see exhaustion there opinion that chart looks very similar

i would waiting about 90 there are for happy morgan >> got it. thank you. head to our website or follow us on twitter tyler and kelly, back do you thanks so much reopening in some states like arizona and texas is leading to a spike in coronavirus cases and hospitalizations that's a big reason for today's big sell off today the dow is down almost 1500 points we'll speak to a doctor in arizona. one of the country's newest hot spots. stay with us you're on power lunch. stock slices.

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welcome back, everybody. here is your cnbc news update at this hour. apple joining the list of companies responding to the

dilling of george floyd. they will spend $100 million to fight for racial justice ceo tim cook says apple will hire and promote more black and underrepresented employees and buy more from black owned suppliers. you can go to cnbc.com for more on that story. nashville is putting its reopening on hold. the mayor says that city will remain in phase two because the 14-day average of new cases of covid-19 remains slightly elevated city officials are focusing on the southeast part of the city the source of more than half of the new cases over the last month. cnbc's parent comcast has settled a racial discrimination lawsuit with byron allen who sued for $20 billion comcast will add three channels from his entertainment studios last november the case went to the supreme court where comcast won a unanimous decision on how to define discrimination you're up to date. i'll see you in an hour

the market is in sell you have mode in a big way today after what has been three weeks of euphoria. stocks rebounded from the march 23rd lows. right now, as you see there, the dow is down almost 1600 points nearly 6%. the s&p 500 off more than 5% the nasdaq is down 4.3, almost 4.4% and the russell 2000 down most of all more than 6% the oil market is closing for the day as well. let's go to dominic chu. >> the drop in crude worse than the drop in stocks the last trade $35.97. ice world benchmark krucrude futures off 8.5% you mentioned that sharp euphoric rise off the march lows we saw in crude oil. same kind of thing here.

we saw the lows in a huge bounce back higher. at some point they were negative prices let's take a look at where else we're seeing the action in terms of the stocks affected the worst performing stock in the energy sector off 17%. they had a secondary stock offering they are trying to raise some more money by selling shares c cabt oil and gas may indicate higher prices. we'll look at the etf, the biggest one out there. one of the biggest ones. the spider energy etf up 8% right now. so far, a sharp move higher but this move today makes it the worst performing sector in the s&p 500. we'll see if that energy rally picks up steam to the upside or whether or not this will move to the downside has some legs here. back over the you. >> thanks very much. the dow is moving toward fresh session lows it's down 1600 points now.

new cases in arizona are up. the state's top health officials are telling hospitals to prepare for crisis for more let's welcome in dr. chad it's good to have you welcome. >> thank you good to be here. >> can you disentangle why this case count is increasing is it because the increase in testing or a genuine increase in people getting sick because it sounds like there's been an up tick in people filling hospitals. >> yes it's definitely more than just testing because of a number of i understand caters. the increase in the percent of positive test results over a month ago, was around 5% and now

in the last week it's been between 11 to 13% depending on which one of the models you're looking at in terms of the case counts how many tests come back positive as you mentioned, the hospitalization rate has gone up by 49% all of these trends come together to point to it being more than just testing and because of extensive community sfr spread >> you think it's related to the openings arizona did have some version of a shutdown it reopened and you say there's not been mask wearing. i can't help but think about las vegas where the casinos are not requiring people to wear masks if there's one thing we learned over the last couple of month s so much of the spread can be prevented by wearing mask. tell us what you think has been going on in arizona. >> i think that's one of the key points is it's not a question of whether we should have reopened when we did or not it's how we did in terms of the

behavior of individuals. the guidelines that we're referred to by the cdc are sound but most folks have been out and about in close spaces including nightclub, bars, malls, restaurants without any mask wearing. i think that's a big contributor to what's going on this idea we can go back to normal prematurely has been a big issue. casinos or elsewhere we know that masks play a critical role in terms of preventing the spread. it's not only good for you as the individual wearing the mask but it's good for all those around you it's really part of our civic duty to do the right thing by wearing mask >> one other question, especially as we watch the markets selling off and people are concerned about these new wave, what it take for arizona to contain this one. obviously, once the community spread starts, it's a bit more difficult to stop. nobody wants to see shutdowns again, obviously

you know, would it take some statewide measure about required mask wearing, something to that effect what can keep this from feeling up the hospitals more quickly and spreading more rapidly many the future >> it's a great question i think that the key point short of having another lockdown which did work well, the numbers did go down when we did have our version of our lokdown here in arizona. short of doing that, which is you pointed out would have negative implications for the economy as well as for mental health in terms of people being cooped up, i think the cost of staying open is for us to have to have more restrictions and one of those restrictions will be mandatory mask wearing by all employees from a public health perspective that makes sense and making it a very strong recommendation, if not a requirement, for folks going into closed settings, such as restaurants and other venues like that to wear a mask

then i think we have to reevaluate certain openings, maybe not everything but perhaps we should reevaluate movie theaters because of the timing we know that it's not just about the being in close proximity but it's the amount of time you're in close proximity if someone that the infection, the more time you're with them, the more chance you are of actually getting it. that's an issue. >> quick final question as we watch the case count rising in the warmer states like arizona, texas and some others, there had been a theory that warmer weather might prevent the spread of coronavirus but perhaps we forget about air-conditioning and i've been out there in june and july, it's very unpleasant you want to be in the ac pretty much all the time. is that spreading covid? >> that's definitely a factor if you're here in arizona because you go from one inside air-condition space to another

that's how we survive here in the desert i think ta contributes you combine people going into close spaces more and the fact that nobody is wearing mask and then you get the numbers that we see right now. >> interesting thanks so much for joining us today. keep us posted >> my pleasure will do. >> tyler the come back trade seems to be unwinding a little bit today. airlines are getting crushed american airlines using more than quarter of its value since monday's close casino stocks are down today we'll take a closer look when power lunch returns. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding

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it's accelerating here in last hour. we're down close to 1600 points. close to lows of the session close to 6% on the dow a little less so on the s&p and marketedly less so for the nasdaq which has been one of ta stall worths casino stocks are getting crushed today. contessa covers that for us. >> hi, tyler off the lows of the day. take a look at regional caseys now. eldorado got off down 14%. you have mgm resorts down. that's a diversified company a dominant las vegas strip presence and mccow take stocks and look at them over the quartzer.

eldorado is up about 144%. some of this dramatic sell off is profit taking but some of it is concern over the increase in coronavirus cases in some states following these permissive reopenings nevada casinos opened one week ago today. there's real concern here over what's coming down the pike for the economy. the recession, unemployment and what mite ens for discretionary income which is crucial for casinos. here is sochl tme of the compan with a presence. it's still losing $2 million per day. tourist visits are still not allowed. thing province will allow student, teachers and a few other groups back across the border this ramp following reopening just really hasn't happened because of the border shutdown we're going to be looking for when that can increase and whether that is some kind of ramp there

>> i'm just thinking we just spoke with this doctor in arizona who said people weren't wearing masks and that's how they have been spreading coronavirus. i just keep going back to this point on the casinos do you think they say you got to wear a mask to be here in. >> the head of the coronavirus task force in nevada is the former ceo of mgm. does the kor tcoronavirus task e come back and try to force visitors to wear masks they said all employee, front or back of the house have to do it but not the guests given the freedom, the guests don't wear masks what we saw over the weekend is people chose not to wear masks >> absolutely. i'll keep checking in on it. thanks very much coming up, a historic day for mortgages. rate so low many people never thought it would be possible we'll have details the dow is having its worst day

in nearly three months we have much more on this huge sell off the dow is down 16 08 points. with fidelity wealth management, your dedicated adviser can give you straightforward advice and tailored recommendations. that's the clarity you get with fidelity wealth management. ♪ yeah ♪ ♪ y-yeah ♪

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welcome back the market keeps falling, it's down 1654 right now. the selloff has been gathering steam over the past half hour or so 6.2% drop for the dow right now. that is hitting the skids down nearly 1700. perhaps no surprise mortgage rates are also dropping as they follow the treasury yield back a bit lower lately the big headline, the mortgage rate fell below 3% for the first time ever. diana owe lig has that story

>> yeah. the selloff in the stock market caused that run on the bond market, crushing yields and the mortgage rates follow the yield on the ten year treasury loosely. take a look. we're now at a two handle on the 30-year fixed. that's the first time ever 2.94% according to mortgage news daily. that's an average for top tier borrowers you could be looking at 2.75% lower to the borrowers are above 3% this is abrupt and unexpected. last week we were seeing major liftoff in rates following the much better than expected jobs report rates began falling yesterday after the fed announced it would continue to prfrp mortgage backed bonds keeping liquidity in greater certainty in the market for a while. but rates are not the whole story. credit availability is still tight and getting worse according to the mortgage bankers association. monthly index for may marked the toughest credit conditions in six years. that was across all loans types from fha to jumbo. back to you. >> wild.

dianne yashgs thank y diana, thank you very much >> a huge selloff in wall street is picking up pace in the last few minutes. all s&p sectors are lower. the best group is down 3%. energy and financials leading wait down more than 7% now the dow nears a 1700 point drop. stay with us thanks for sharing your diy haircuts. thanks for sharing your savage moves, and especially your awkward ones. thanks for sharing your cute kids. and your adorable pets. now it's our turn to share... with the geico giveback. a 15% credit on car and motorcycle policies for both current and new customers. and because we're committed for the long haul, the credit lasts your full policy term. so thanks again. one good share deserves another.

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i just discovered sofi, and i'm an investor with a diversified portfolio. who am i?! i refinanced my student loans with sofi because of their low interest rates. thanks sofi for helping us get our money right. ♪ welcome back we're watching the markets slide further just over the last few minutes. the dow is down 1667 points for a 6.2% drop this afternoon we just hit fresh session lows we hate to ask, you know, for you to dive so deeply on the trading action of one day.

but what does today's selloff tell you >> kelly, you actually preempted my response to that question i think it's important to put today in the broader market context of this recovery and remember that we entered this week up 40% or more from the march 25th low in the market and that narrative was based on a reopening economy, you know, some good news in a vaccine and economy that started to rebound almost a v shape rebound starting in the second half of the year it would be harder to restart this economy than it was to shut it down. and doubt that the recovery could be more protracted than what's currently priced into the market

that's what we're seeing today that doubt being pulled back in a pullback >> jim, how long does this play out? do we have to go back to the case count and have that look more tame? we've been talking about areas this were overbought and the retail frenzy. >> this one has been so fast moving and so now we're having, you know, large speedy corrections as well. it's not unrealistic to assume we're up 40% and then have a 10% correction along the way and may have multiple ones as we go along. you just don't have it all happen in one day which is what we're getting kelly. i'm not sure it's about the viruses or what powell said.

i think that's the news that happened around this correction. i'm not sure it's what caused it i think it's just due. we were going up too far too fast it makes everyone raise some cash again this kind of stuff that might ultimately help find a bottom. >> so just the quick time that we have left, what would you recommend that people have exposure to? do you think you can be fine owning stocks? >> absolutely. there is that opportunity in the volatility as he mentioned we expect the pullbacks will be part of the growth trajectory over the longer term even if the overall trend is up. i see jim nodding.

i appreciate that. i appreciate both of your time today. joining us, tyler, on a 1,700 point drop for the dow >> what i did do to stocks by coming back here in the studio >> i need to go back to the kitchen, ladies and gentlemen. it's nice to be in the same room with you, kelly. and with your next co-host "closing bell" starts right now. >> welcome to the closing bell, everyone the selloff accelerates. the s&p 500 is down over 5%. the dow was at 1700 points or so over 6%. the worst day since march with 59 minutes left in the session let's have a look at what is driving the action a surge in the u.s., dampening hopes for a reopen rally travel and retail stocks like american airlines and simon property there all cratering