independent wealth management space is seeing expansive growth and they have a link in the market share i'm thrilled to be conducting portfolios and a strategy. >> thank you, guys, for watching that does it for us. kelly picks it up here thank you, scott hi, everybody, and welcome to "the exchange. investors start to seriously worry about the increased number of covid cases across the country. stock at session lows as new york, connecticut and new jersey announce that they want people traveling there to quarantine for 14 days inside their borders. >> take a look at this the dow industrial is down just about 600 points right now, north of 2% losses s&p 500, similar percentage

losses down 68 points, and the nasdaq composite, a real standout in the year 2020, operating down about 1-3/4 percent. one of the things to watch is the s&p 500 levels right now if you look at a one-year chart, 3,020 represents one level traders are watching that represents a 200-day average price of the s&p something to watch as we look at the sectors, all 11 are in negative territory the outperformers, you can imagine, the staples, and meanwhile you have energy sectors down about 5% right now on falling oil prices. speaking of those falling oil prices, a huge amount off the low since we saw covid-19, but just yesterday crew hit the

highest prices since the pandemic really took hold. a big loss today we'll see if that picks up in the afternoon session. i'll see you after the oil close in the next hour for more in what's behind the selloff, let's go to bob pisani bob, what sticks out to you? >> the reopening story, is it going well or not? it's not going well today. you heard governor cuomo threatening to shut down again if there's not more social distancing, problems in other states as well we're seeing a weakness in trade and travel, always the first things to get hit. carnival cruise lines got rated down to junk, barclay downgraded the cruise lines from overweight i'm not sure why they did that overall, why they had it in an overweight, but you see them getting hit and the airlines getting hit as well. the next step is tariffs and trade, not with china, but the european union is talking about additional tariffs on everything

from gin to food products to luxury products. europe got hit pretty hard overnight as well. dom mentioned oil as well. we were at 40, had a 5% drop higher inventories there and these oil stocks are all down. they look like inverted vs, by the way, going from 40 or 50 down to $41 in less than a month. it's the same with the banks here's another big worry we're waiting for stress tests for the banks to come out. these stocks have been acting horribly recently. k keycorp was 12, went to 16 and now back to $12 again. an inverted v all in a month about the potential of lower dividends. let's get more on the selloffs and what could be next for the markets. joining me is bill meeks nancy and janelle woodward

it's great to have all of you here paul, i'm going to begin with you, because especially as a tech investor, you say this is the most bullish you've ever been do shutdowns, do coronavirus all play into that >> i've been around a long time so i'm comparing the fundamentals in the late advent to the '90s and the 2000s. one of the things i've seen, you would expect tech stocks to outperform when the market is risi rising, but one of the things that really proved their mettle is when the market was crashing between mid-february and mid-march. this was number two or three in the highest sectors. i do think with some of those covid-oriented themes that tech will continue to perform when the market rises and i think it will actually be unusually so a

relatively safe haven. >> i want to come back and dig into that a little bit, but first to get everyone else's thoughts, nancy, as it relates to tech, would you be overrating some of these companies because they have been outperforming during times of market expansion, although a little less so, obviously, but certainly outperforming any time we get more concerned about shutdowns. >> yes, kelly, i've actually been talking about that for a number of years. this was our next 3- to 5-year overall trade in sector for the decade the valuations are not what they were in '99, 2000. i was a pm back then as well we're saying they're becoming a safe trade, and bob was mentioning earlier, the volatility on technical stocks relative to technology and relative to growth are much higher if you look at where we get relative growth. we use the weakness to buy some new names, and then in the

runup, we've been trimming back on some of the names like apple where we're way overweighted we like the sector and think it's strong for the next five to ten years. >> janelle, let me turn to you what is the message from fixed income markets these days? we know the leverage from the 10-year average is still low, but we've seen an uptick in expectations lately. what can you tell from everything you watch here? >> yeah, i think what we've seen is that there is a lot of look forward to 2021 in terms of the economy normalizing and there being a lot of support from the policy put in place. i think the tech conversation is really interesting as we look at credit sectors technology has also been the top performer on a fixed income on a day-to-day basis what's a little different when we think about tech in a context

of a portfolio, we have your apples, your amazons, your microsofts which were double and triple a rated, and while they don't offer a lot of spread, they can be good in a portfolio, so it's very interesting to see what's taking place in the opportunities in the market that will put them back into a fixed income portfolio >> nancy, what are your thoughts on the likelihood of further shutdowns or -- i don't know if shutdowns themselves will happen i'm curious what you think about that, but there's obviously going to be a lot more self-quarantining behavior, people choosing to stay at home. i think in texas the governor encouraged everyone to stay at home unless you absolutely have to go out. what are you picking up on in terms of the overall market impact on that >> i'm in one of the hot spots, which is phoenix, arizona, and the hospitals are still at capacity -- or have capacity in the icu units.

last time i looked, 30% of the beds are empty icu units are usually meant to run full i think there is a difference between cases and, you know, serious hospitalized cases and pending death. so we're -- i went out to dinner last night the restaurant, you wear a mask going in, but you take it off when you get inside, and the restaurant was full. >> an indoor restaurant with air-conditioning >> yep yep. >> interesting >> i think that individuals are sort of saying, i got to carry on with my life and i'm going to do it carefully. and i think the market for the most part has been looking through the rise in cases, because as steve mnuchin said, we can't shut the economy down again. >> one more question, and now i feel like i'm an interrogator here were you socially distance at dinner last night, nancy here in new jersey, we have just started having restaurants with outdoor seating and they make a whole show of it with liners between each table, and the idea of walking into a restaurant and

sitting there without a mask on sounds crazy in these parts of the country. >> i know it, and yes, at my age i'm socially distant, of course. definitely >> and does that make enough difference, or is stuff being piped around in there? anyway, let me get off this, paul, and get back to technology in general for someone like you who has been through so many of these cycles including dot-com, i would expect you to say i'm concerned with how heavy these techtrades are explain to me how much further you think this tech trade could go >> first of all, my comments about the fundamentals, not necessarily the valuation, there are valuations within tech that are stretched and there are other valuations in tech that are super-stretched. so i am concerned. but i would tell you this. tech is not a monolith there are going to be good areas and bad areas.

and within some of the themes, artificial intelligence, autonomous vehicles, cloud computing and some of the others, what i've seen over my career is typically the strong get stronger i think that has been borne out during covid when you see the announcements from some of the major companies that things are going so well and actually accelerating for them that i feel pretty comfortable with some of the major names. not all of them, but some of the major names. >> all right and finally, janelle, before we go, we did hear from the feds, charles evans, about 10 minutes before the top of the hour among his other comments on concerns about the economy, he did say monetary action may be necessary. how much more might authorities have to do here to kind of offset the concerns people have about the economy as the case count of coronavirus spikes? >> one of the things we're certainly looking for is additional fiscal support. i think the fed has made it

clear, if we look back to its secondary purchase program of corporates, stepping in after that first real week of widening volatility we saw a couple weeks ago, it's clear they'll continue supporting these markets, but we are looking for fiscal support one of the areas we've seen lag in tech sectors, fiscal support will help close that gap one of the areas we're particularly looking for help is in the transportation sector >> transportation, and paul, you think people should have 40% in tech stocks? >> the tech itself is about 25% weight then you take a look at the communication services stock and the e-tailers which are within the consumer sector, and it's not a stretch to get within at least 40% of an equity portfolio in what i call tech or techish >> wow that certainly says a lot about how this economy is changing

thanks to all of you today, paul meeks, janelle tengler and nancy woodward will any cities be forced to shut down again? we'll explore that plus a new list of stocks to buy as the stay-at-home trend proves longlasting bank of america will be here with those names let's look at the dow heat map. all 30 dow stocks were lower we're back in two. flexshares may look simple on the outside. but inside every etf... there are untold hours of careful construction... infinite "what ifs?" and contingency plans. creating funds that help target gaps in client portfolios. tap untapped potential. and strengthen confidence in you. flexshares.

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welcome back to "the exchange." more and more states are pushing ahead with reopenings and events despite what dr. fauci calls a disturbing number of cases across the country that urged new york to issue a travel advisory from certain parts of the u.s meg? >> dr. fauci termed new york doing well right now in terms of the trend, and governor andrew cuomo announcing this travel advisory that right now applies to nine states, where people coming from those states into the tri-state area will need to

self-isolate for 14 days the criteria for how these states are selected are those that have an infection rate of 10 per 100,000 people on a 7-day rolling average or where 10% of the total population is testing positive on a 7-day rolling average. so this really tracks with the hot spots that we've been watching over the last couple weeks. now, florida today reporting a record high in new cases yet again. more than 5,500 daily cases reported today, and concerning the positivity rate in florida now up to 16%. it was about 11% esterday. broward county which encapsul e encapsulates ft. lauderdale on the eastern coast of florida is showing an emergency order, saying any establishment that violates protocols for being open shall close immediately, so trying to track down on the local level there in florida and this, kelly, as hospitalizations in at least seven states hit record highs yesterday for those who are currently in the hospital, from

california, arizona, texas, arkansas, tennessee and north and south carolina, again, kind of matching up with those states facing the quarantine order if they want to come into the tri-state area, kelly. back to you. >> yep that's a big about-face as when the southern states were trying to quarantine northern visitors. meg tirrell, thanks very much. health care is down more than 2% right now as they serve covid cases. often seen as bad, especially for the hospital sector. they lose being able to do other services joining me is michael chan from the school of public health. nice to have you here. what do you think about what we're seeing with the death count, particularly the hospitalization rate what is the most important takeaway right now >> i think the most important takeaway is we're seeing cases increase across the sunbelt.

back in the spring we saw a lot of cases in the northeast. there was a very, very large outbreak up here and so far the country has been spreading wider. there are half a million cases in the sunbelt and i'm particularly concerned about those hospitalizations the hospitalizations are what we think of as a lagging indicator, because they're a little bit behind the actual infections because infections happen in the past and a few weeks later, people start being hospitalized. a few weeks after that, people start dying. to be very clear, what's been going on across the south because of different types of testing, but the fact it's happening pretty much everywhere indicates we have a real problem on our hands there >> what do you say about the treatment for those who were involved in the first wave where we knew very little, where ventilator treatment was one of the first methods used and often to poor effect are the methods improving? are the prospects improving for

coronavirus, and does it even matter does this really come down to hospital capacity, icu kpaflcapy and if that's a lagging indicator, for those areas that may be considering shutdowns, how should they know when to impose them? >> it's a really great question. first of all, to improvements in treatment, we have seen improvements in treatment. the results that came out about dec decks -- dexmethazone. however, that doesn't mean we're out of the woods people talk about shutdowns and the like we want to avoid shutdowns we want to avoid catastrophic situations for our economy but if you're sitting on a body of transmission for long enough, the only thing you can do which is something severe, that's the

problem. you have to start taking milder actions sooner when i talk about testing, you don't just test. you know what you're going to do if you get a certain kind of result that's what i'd like to be seeing more of i would like to see more governors and more jurisdictions coming up with real interventions they're able to do to prevent more people from being infected and more people entering the hospital and more people dying >> it seems like there would be a big opportunity for kind of knowledge sharing. those hospitals in new jersey, queens and the hot spots up here, hopefully are able to share best practices for those who are now in the middle of this, because certainly those people who i know have worked in these facilities say they feel better prepared now to handle an influx of cases. maybe they figured out how t deal with surge capacity and that sort of thing if, doctor -- i called you doctor -- if that is the case, do we result in having more

shutdowns? >> i think we would have to considering how confident are we that we can completely avoid the catastrophic outcomes we saw in the northeast? one thing i'm going to say, which is positive about the sunbelt, i think they have better testing i think you can see that in the fact you have a younger age profile, but it does mean there is a larger quantity of transmission building in the community. i think that we can hopefully take a lighter touch, but people need to be looking at the danger and thinking, how prepared am i to be wrong? which consequences am i willing to live with >> there are so many difficult decisions to make. mr. hanage, thank you so much. we hope to have you back william hanage with trans school of public health let's bring in rick santelli with the results and a grade rick, how did it go? >> a b-plus. it went very well. 47 billion, the largest ever one-third of 1%, the lowest

yield in an auction ever suffice it to say, big cover while it was the second best since july of '18, and if you look at indirects and the dealer percentages being small, they were the best since december '19. all in all, every category excelled, solid auction, and when did it occur? on a day when the dow jones industrial average was down 3% it makes sense the market for securities is in vogue, especially in sessions where the equities aren't. kelly, back to you >> so true rick, thanks so much rick santelli with those auction results. coming up, the cruise stocks are the worst s&p performers today as carnival gets downgraded to junk the eu may ban u.s. citizens we'll have all the details next. plus restaurants and retailers have a lot at stake if states begin to close down weagn. 'll look at who is most at risk stay with us

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welcome back to "the exchange." not a pretty picture on the dow. it's down 365 points still, it's a 2.5% drop for the blue chips, same for the s&p down to 76 now the nasdaq at 202. rahel solomon has your news. governor andrew cuomo says the federal government has been, quote, incompetent, in their handling of the pandemic and now other states are having excessive outbreaks. >> you look at all these states and you see an arrow going up because it was misguided to say we're going to reopen the economy. what you're doing is you're putting people's lives in

jeopardy, and you're hurting the economy. >> brooks koepka, the number four rank the golfer in the world, has withdrawn from the tournament that's because his caddie tested positive for covid-19. >> we're wondering about golfer, we're wondering about the nba, we're wondering about baseball thank you, rahel solomon, with our headlines there. let's turn to the cruise lines that are the worst s&p performers with declines of more than 10% see seema mody joins me with more. >> we are seeing the cruise lines on a percentage basis, the worst performance sector down as much as 9 or 10%

carnival's rating was downrated to junk status, the agency raising concerns about ka carnival's ability to raise capital in extremes. et u may put a ban on american travel starting july 1st. if europe moves ahead with this, it raises a risk of a retaliatory response from the u.s. government this is certainly a story we're watching more closely as europe is starting to open its borders to international travelers around europe, kelly >> that seems like it would be a bigger threat to the cruise lines. as you reported, they already voluntarily said we're not going to sail from u.s. ports before september 14, so we have some time would any of these disputes, i wonder, carry on past that time frame? >> that is the big question. in regards to the suspension here in the u.s., that's still september 15 at that time acarnival spokesperson had told me there was a good chance that sailings

in europe will return before the u.s. however, this news suggests that might not happen or could lengthen that timeline that raises another big flag >> and all down more than 10% today, still 60% off their highs. seema, thanks so much. seema mody with our report there. we're going to drill down on the individual sectors and the biggest moovvers take a look at the casino stocks eno struggle as they try to reop caesar's paying customers to wear their masks we've got more details on "the exchange." for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information. talk to your financial professional or consultant but a resilient business you cacan be ready for it.re. a digital foundation from vmware

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welcome back markets just moved to a notch lower. we're down 36 at the lows we were down. 859. that was just as new york, new jersey and connecticut announced they would quarantine visitors from hot spots, so we're talking about nearly a 3% drop for the dow this afternoon courtney is tracking the retail wreckage and >> the biggest drops we're seeing are in casual names that have been suffering long before the pandemic hit brinker, bloominbrands, darden restaurants all tipping below 36%.

yum brands and mcdonald's are all falling, but not with other drive-through options. papa john's, chipotle, wingstop, domino's are out of the green going forward. >> i imagine the restaurant business must be changing dramatically in places where we're seeing more outbreaks. >> restaurant data continued at about 12%, which is good news for the week ending june 13th, but in terms of dining out, our research finds out only about 40% of consumers basically say they're comfortable dining out at this stage in the pandemic. that's less than half, basically, saying they would be willing to get out there and try this out >> kate, thanks very much. kate rogers watching those stocks for us. let's turn to the banks now where some of the commercial banks are under pressure the sector was already under

pressure as the second worst performer this year. that's always bad news with wilford frost. >> sometimes i bring good news, but no, banks down 3 to 5%, the world down 35% lower banks have benefited from the late may and early june rotation into cyclical value stocks, but we're now down around 20% just since the 5th of june. why is that? rotation reversal. typically days like today when virus fears resurface, number two, interest rates and that commitment for longer from powell on the sector rotation. there are a couple significant events coming, too stress test results are due tomorrow, and factor earnings are due the second week of july. not perhaps imminent but perhaps more important than the stress test results tomorrow. we can see the scale of bad

loans once again when we get to earnings and can expect significant differentiation between the different names at that point, and for a snapshot of that, have a look at morgan stanley year to date, one down around 50% the other was, in fact, flat year to date earlier in the month of june, kelly >> wow, that's incredible. that is a huge performance gap that also maybe speaks to some of the sort of transitional changes all these banks might have to think about. i do feel bad in some ways this is a really tough macro environment if you're the banks. so like you said, you can still differentiate performance by making certain strategic moves, morgan stanley versus wells fargo, but even the fact that they have record high cash levels is not a good thing they have to hold for capital as those banks expand they're really caught in the middle and i suppose they have to wait like everyone else for some big resolution on the coronavirus. >> i think the first question

the bank stocks faced when they were at march lows was, are we going to go through a depression style economic pullback, in which case banks' future would be in question they've answered that question pretty confidently so far. the question now is when will they actually be making significant amounts of earnings again, and you see where the interest rate curve is and that's still to be altered i think the clarity will get at earnings, and that's why i suggest we might see some differentiation, not just investment bank versus regional bank, but even within the regional banks is how exposed different names are to some of the most problem areas, whether that's airlines or restaurants or movie theaters, and that might allow some of them to rally a little bit but certainly not game-changing amounts. >> no, but that's a great point. it would be nice to get that clarity. thank you very much. reappreciate we appreciate it let's check out the cloud stocks they're also going down putting

stocks in jeopardy let's go to josh now josh >> one cloud-watching etf, the ticker now is shopify, workaday and box. pipelines building and deals, they say, getting done richard galoria has said the pandemic and work from home has been an accelerant of the next generation technology that these companies provide, and one cloud name to watch and an outperformer that galoria is a fan of, twilio it's gone 200% from its march lows, the company having strong

products kelly, back to you >> do we think there's more going on here, josh? when the nasdaq has been on an eight-day run, when the stocks have been performing so well, is it possible they just need a breather >> sure. these have been tremendous runs for many of these stocks at the same time, listen, the last earning season, kelly, a lot of big names, we can say, are holding up relatively well as you work from home as people now work more, play more, learn more from home, they're depending on a lot of technologies these companies are providing, everything from e-commerce to cloud computing. it will be an interesting trend to watch >> josh, thanks so much, sir, and let's turn to retail with every area of that sector falling today, from nordstrom to mace eyes to nike. courtney reagan is here. courtney, some of these are down 6% >> and you've got retailers like macy's, kohl's, they're all talking about reopening in areas of the country, but if more of

the country are seeing big outbreaks, it's going to be really tough for retail in a big way. special retailer names selling off markedly bed bath & beyond, 9%. kelly, we talked about these earlier on your show, tjx, ross, burlington if you can't go to the stores because of an outbreak and they close again, this will be trouble. ross stores are down 5%. we're spending more time outdoors and we can do that safely, but you don't really have any protection in that group, either. under armour shares down 5%, accessories footwear, like dsw, designer granbrands, those shars

down almost 10%. fossil more than 9% lower. kelly? >> i'm thinking of the region alex power, your home state ohio is one of the places kind of getting on the map unfortunately, hospitalizations up for 30 straight days if that kind of helps explain who is most at risk here. >> yeah, it's just so tricky to see what's going to happen, and as your earlier segment was talking about, the hospitalization rates are actually going to be somewhat of a lagging indicator when we're talking about infection. big decisions have to be made here about what you're going to do here to protect both your workers and the shoppers in store, and it's really a shame, because obviously not only did we think as a country we were healing from this health crisis perhaps, but some of these retailers were reporting better trends traffic shoppers said, yeah, traffic is down, but it was down 83% earlier in the crisis. so shoppers were coming back out in some areas of the country we'll see what happens >> one more thing, courtney,

real quickly, i'm thinking about apple who made decisions to close stores in some of these outbreak states, and that, of course, sent the whole market lower. but could it be if authorities are less willing to do these blanket shutdowns, could retailers be leading the way in terms of making that decision themselves >> absolutely, kelly and i think that's a really good point. a lot of times, at least from the conversations i've had with these retailers, it doesn't even necessarily come from the headquarters level, meaning it's going to have to be a decision that's made on the ground by many of these store managers, or perhaps the shopping centers and then the tenants come together and make a decision, because they are getting more information more quickly on the ground and can just do what's appropriate to protect the health of everyone involved. so i think in some cases you're going to see it go from bottom up as opposed to the other way around if we see more of these reclosures >> great point courtney, thank you so much. courtney reagan. let's turn to shares of disney they are following as employees call for a delay in reopening parks. while cases in florida jump, the

state just reported a single new record for cases california just reported a big increase as well let's bring in julia boorstin with all those details julia? >> more than 75 million people have signed a petition calling on disney to delay a reopening of disney world in florida until they see a decline of covid-19 in that state. this comes after a representative of disneyland employees in california wrote to governor newsom last week saying they believe it's still unsafe to open that park. disney telling us, quote, the safety and well-being of our cast members and guests are at the forefront of our planning, and we look forward to continue dialogue with our unions on the extensive health and safety protocols.

it is worth noting that the disney division was the largest by revenue, so certainly a lot of pressure there. but it's worth noting as we await california to approve the opening of the parks here, we're still awaiting that from the governor that universal orlando's park is already open at limited capacity. >> i don't know if they would make a reversal on that. it was interesting that this recommendation came from the workers regarding disney >> disney really needs to make sure both its workers and its visitors feel really comfortable. it doesn't send a particularly good message to disney fans, to people who might want to go visit the park, that the workers are saying this right now. you really need all their constituents to feel comfortable for this to work out i know that disney is really doing everything it can right now to make sure that environment is safe at the parks. the question that we're hearing the employees ask is whether there is any world in which it

makes sense to open the doors right now. >> but you're right, disney in particular has a lot riding on this julia, thanks very much. julia boorstin with the latest there. still ahead, human discretionary is falling in the selloff, and we'll break down how social distancing will influence behavior and what businesses could suffer. that's next. ndao, boeing and walt disney topping the list of dow laggards we'll be right back. ♪ ♪ yeah ♪ ♪ y-yeah ♪ ♪ yeah ♪ hey, hey

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home for longer, so what will consumer trends do to these at-home stocks liz is here from bank america securities liz, it's great to see you again, and a lot of the names you recommend are some of the stay-at-home plays are there any new additions to this list? >> a lot of stocks we highlight in this note are stocks that have done very well from consumers being stuck at home, lowe's, tractor supply, amazon, wayfair. millennials moving out to the suburbs and maybe buying their first home, that would benefit the betting stocks thi we tried to highlight a couple other stocks that aren't quite as obvious in this report that will ultimately be beneficiaries of this urban exodus >> that's fascinating, maybe it

helps casper, too. who else would be on that list of that kind of demographic trend? >> sure. purple as well a really interesting betting stock that has become a big up and comer. also rh and bed bath & beyond. bed bath & beyond is under a lot of pressure, but when you think about decorating a home, that's where a lot of people go a lot of stocks are relying on people being in the stores, which we think is important, and they've shored up their liquidity in a big way we think they're in a good position to host post-covid for a multi-year period. >> and tractor supply should know that's a jim play as well we have our horse mats there they weigh about 90 pounds each, but they're fantastic. how much upside could tractor supply have here >> one of the reasons why that

one, we didn't raise the price target quite as much as you might think is because they've already told us what they think their quarter to date trends are looking like they're very strong. that's already priced into analyst expectations for the second quarter not quite so much when you think about lows and the second quarter expectations there the credit card data we've been tracking at bank of america has shown incredibly strong trends in home improvement spending, and yet the customer estimates are still calling for low to high digit growth in sales in the second quarter for lows. i think there is potential for opportunity for upside there long term tractor supply, though, remember this is a growth retailer. they're still building new stores, they're still expanding their floor base where home depot is not, they're staying with the same level store. so tractor supply is a growth retailer still trading at a pretty attractive multiple, around 22 times. >> let's talk about amazon and

other online retailers where you think there is a shift here. this is really adopting e-commerce and wayfair, that pops up as well that is a super volatile name. >> absolutely. wayfair and amazon are covered by my associate justin post at bank of america who covers e-commerce and internet companies. from my perspective, covering the brick and mortars, i think of amazon and wayfair as key competitors. but they're certainly gaining market share i don't think that's new what is new is the adoption of retailers consumers have been willing to go to our survey shows that almost 90% of customers are using some form of omni channel capabilities, so either buy online, pick up in store, deliver to home or curbside pickup, so there are a lot of different opportunities that retailers have to use omni channel if they've already invested in it that's the key differentiator,

between the have and have-nots in retail, if you've invested in omni channel, you're going to be spending, so those retailers already in omni channel, they'll probably get the biggest benefit. but acceleration of an existing trend >> liz, thanks very much for all these ideas, we appreciate it. >> thank you. >> liz suzuki with bank of america. the casino stocks are getting hit in the today's sell-off as cases spike in clark county, nevada wynn is down nearly 10%. as we head to break, take a look at gold, going its over wait, 1775 an hour think about more fed money expansion and so forth "the exchange" will be back with much more after this that's been through multiple market cycles for over 85 years? with capital group, i can.

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welcome back the rising count of cases is taken down booze stocks. frank has the details. global spirits brands all trading lower on covid-19 concerns what that could mean to beer and restaurant sales, as well as the sales of premium products. globally premium and super-premium beer sales make up about a quarter revenue for brewers, and third of the quantity was sold in bars, restaurants and nightclubs pre-pandemic that could just be devastating for spirits and brewers, makers that normally see sales pick up in the summer months. >> frank, as you reported, and

more people are getting familiar with it -- is it bubbly -- the apps where you can get it delivered? >> drizzly and other apps are picking up, but it's hard to replace people going out on friday nights drinking with friends. when people order at home, it's just not the same. >> frank holland, thank you. meantime, las vegas is breaking another covid record this week with a spike of 412 cases. contessa brewer is here with what that means. they are selling off hard today. >> reporter: yes, they are what we're seeing is a sell-off over the fears of coronavirus. wynn down 8%, mgm is off 9%, red rock resorts, which really relies on residents who live in clark county, is off more than 9% then you see penn national gaming down 10.3%, some of it may be profit-taking after all penn especially has seen a massive triple-digit

run-up in stocks over the past three months, but it has casinos in a lot of places where it's see infections rise. there's a lot of fear that the spikes in california and arizona will keep people from driving to las vegas. that and the locals are driving what revenue is coming in right now. we're hearing about the high-profile athletes testing positive that introduces a warning about plans for sports to return being disrupted, thereby sports betting. the governor has so far not issued an order to wear masks, but he's holding a news conference tonight i'll be watching to see if that changes. if rising infections interfere with the economy, it means fewer people with jobs or disposable income to go to casinos and spend. >> i thought it was interesting

that they were paying people $20 to wear a masks. >> they handed out 400 $20 to play to two pat rons they wanted to incentivize this responsible behavior why not take a step further and man dademasks. >> a casino owner i spoke with yesterday said to me we're following the man dade from the governor they really want to take the cues from the leaders. they a i think they are afraid it will interfere with the competitive advantage. >> that's an interesting thing about sports betting as well don't you agree, now that we brooks koepka testing positive for golf, people pulling out of the nba tournament that would be like kicking the dog when he's down at this point. >> what they saw was a huge rush

to bet on, like, korean soccer and, you know, these minor league baseball games internationally. i think at this point there's all this pent-up demand to see sports return. anything that disrupts that is going to be a knock to the gut for these sports betting stocks. >> cone tessa, thanks very much. c contessa brewer is monitoring that for us. the dow near its lows of the session, down about 750 points the low was 859. that came mostly when new york, new jersey and connecticut announced they would require quarantines from visitors. the dow is down nearly 3%, s&p down 2.7%. the russell 2000 are down 3.5% we'll have much more on the other side of this break that does it for us. i'll see you with tyler mathisen on "power lunch. stay with us ♪ y-yeah

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hi, everybody. welcome to "power lunch. i'm kelly evans. we continue our coverage of this sell-off, the dow dropping about 800 points near the lows of the session, as the average case of covid has jumped about -- take a look at the laggards dow, boeing, disney, and tesla is under pressure we've been those -- but tyler, over to you first.