share narrowed this morning with all due respect. maria: i don't make market predictions but you make protections about super tuesday. thank you so much. stuart: good morning, the world's central bank to the rescue. they got together to decide their response to the virus and they say they will use all policy tools. don't know which tools or when, didn't get much clarity. the dow will open slightly higher, up 100 points after the record one point gain yesterday of 1294 points. at one stage going up 250 points, that was earlier, this is now, no clarity, no

significant rally, up eight at "the opening bell," a gain of 55, urging the fed to cut rates. we wait to see when the fed is. some money coming out of treasuries. i want to see it but can't, don't have it but it is up from the historic low of one.03%, it is one.12% as we speak. politics. a mad scramble by the democrats to support joe biden and beat back the bernie challenge. amy klobuchar and pete buttigieg throw their support to biden, beto reappears to back him up. this is desperation time. today bernie is expected to win the california and texas primaries, all hands on deck for the moderates, they are panicked at the thought of the bernie nomination but there is

still bloomberg. he says even if he doesn't do well today he is not bowing out. democrats are locked in a 3-way battle, totally split, at war with themselves. just wait till you see joe's latest gaffes, that is plural. "varney and company" is about to begin. ♪ >> tomorrow is super tuesday. i was waiting for a black man to pick me up and take me a total of 147 miles south to washington dc to be sworn in as president and vice president of the united states of america. we hold these truths to be self-evident, men and women are created by -- you know the thing. thank you very much. >> it is chris. >> i just did chris. i just did chuck.

stuart: that is super tuesday, that is today and the candidate we are watching, flocking behind joe biden, a lot more on that in a minute. we have developments here. what is going on? new york city? >> a high school in new york city has been closed, a suspected case of coronavirus. this is testing the headlines, reuters reporting this. we will hear more in the ensuing minutes. the second case, confirmed case in the new york city area in westchester county, a man in his 50s has contracted this virus, the second case confirmed in the new york area but new york city high school closed, a suspected case, we will stay on top of that. stuart: i have been saying for days that the hotspot which is exporting the viruses iran and

i think we have news on how many new cases. >> we are looking at 2336 cases of the new coronavirus, 77 dead so far in the country. in the us, closer to home mike pence in that press conference talking about 43 cases in the us increasing beautiful by four, now up to six and 29 of those cases in the us and california and washington but you heard in that press conference with donald trump he wants a vaccine in a few months. doctor anthony fauci said it would take a year in clinical trials. stuart: the number of new cases in america will explode because we will be testing people when this new test comes along very soon. that is going to happen and we should take a warning from that. let's get to your money, serious topic of conversation. the markets looking for clarity from the g7 conference call, they didn't get it.

>> didn't get a promise of action at any moment, they didn't get the action today. hard to figure out how an interest rate cut consolidate virus. stuart: it would be symbolic. >> of the world is demanding more money the central bank sought to provide it, real true liquidity. but if you lower interest rate and get a pop in the market that is temporary but the virus spreads and is worse than anybody thinks like the spanish flu the market, it will not help the markets in the long run. the flu and the politics are affecting markets. stuart: so what we can expect, rate cuts plus pumping money into the economy is from europe, north america and china. that is what we can look forward to. >> hard to know whether they are going to wait until the meeting on march 18th or not but when they do cut i bet they go to her 3 rate cuts at the

same time, 50 to 75 basis points because if they drip it out everyone will wait until the next one. they have to do it all at once, get it over with and say there you go. stuart: the dow is responding to clarity in the future, we are up 150. >> the dow is responding to better news politically, scared of bernie, responding to the fed and china was first to get the coronavirus. we've seen it turn the corner, recoveries are growing every day and that means the rest of the world the 6 to 8 weeks behind. stuart: the dow is up 140. a lot more for you in a moment. i've got to get back to the democrats and super tuesday. amy klobuchar and pete buttigieg dropped out of the 2020 race, they've given their support to joe biden. i will call him the gaffe machine because that is what he is. joining us, the wall street journal's james freeman.

i see this as an absolute panic, flight to joe biden. >> you see the democratic establishment wanting to keep the party from leaping off the socialist clip with bernie sanders but it is not just the establishment. we saw in polls for the last few years there are a lot of democratic voters who do not want a marxist revolution. you have seen it over and over and that's part of the message of south carolina, yes it was a rebound for joe biden, a comeback of sorts but i think also a strong message after bernie racked up a number of impressive wins that a large part of the democratic party does not want socialism. stuart: they were tearing joe biden down that he couldn't win, makes all these gaffes and now they are flooding to joe biden. >> it should help. former rivals, baidoa, you have

bloomberg appearing on ballots for the first time today so you have an alternative, two options if you are not a sanders backer but i don't think people should necessarily panic and say it is over if bernie has a big night. you still have the relatively moderate vote split between biden and bloomberg and a lot of early voting so that biden momentum is not necessarily captured in the headline results. what is interesting is if we get a look at people who vote today where they are going. stuart: 2 billion people have voted in california. >> bernie looking very strong, hard to see how even the late surge from biden prevents bernie from winning california but it is a question of delegates and movement and if there is a clear alternative probably biden but maybe bloomberg after today they can

still deny sanders, blowing up one of america's two great the local parties. stuart: having fun? >> it would be more fun if we can roll out marxism and have a debate. stuart: update on what is happening in new york city. ashley: two schools. an interesting development if you like, the first is a high school in the bronx, riverdale high school, a modern orthodox jewish private school and a day school in mamaroneck, new york, a jewish private in westchester county, one of the suburbs. the tying is there both orthodox jewish private schools. stuart: that is quite a development. no impact on the market and not suggesting there should be but there is no impact on the market. let's go to tennessee where a tornado ripped through

nashville. grady trimble is there, show us what it is like. stuart: the damage is pretty bad, tens of thousands of power outages across the area. power lines strewn across parking lots. this is a u-haul building and it is decimated and if you look at the background you can see a u-haul truck toppled to it side when the tornadoes moved through here overnight, thousands of people without power, lots of buildings damaged, dozens of them, at least 9 people have died here. i also want to show you this to show how extreme this damage was, this power pole, this utility paul snapped at the base and fell, landed on this u-haul truck and shattered the window, busted up the truck quite badly. this vantage point gives you a view how close we are to downtown nashville, you see the high-rises in the background, a

lot of people were in those high-rises and they took video of the tornado moving through this area and you could see when the lightning hit and it lit up the night sky, pretty extreme damage this morning, nine people died in the sun has only been up for a couple hours so people are just assessing the damage and i want to mention it is supertuesday, people are having trouble getting to polling places in some of the polling places have damage so they are trying to figure out where those people can go so they can vote on this primary day. stuart: we will be back later. lukewarm forecast from target, their online growth slows down the stock is holding up, $110 a share on target. better profits, better sales, they expect weakening profit margins. the stock is up 5%.

ali baba is warning customers, alley express customers, that is a bit like prime or something. they are warning those customers they may face delivery delays because of the coronavirus but stocks are virtually unchanged. check futures, overall going up a little bit more after yesterday's huge rally, the dow is up 1294 points, a bit more at "the opening bell". disney world getting new attraction, mickey mouse, it is the first for disney. donald from rally voters ahead of super dues day, and a live report next. >> mister president, we are going to kick their [bleep] in november.

>> great guy.

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>> 8 months from now we are going to defeat the radical socialists and you hear about enthusiasm for crazy bernie and he does have some enthusiasm but much less than we haven't a smaller group of people too. there is not a lot of enthusiasm for biden. i thought he gave up the presidency the other day because he is running for the senate and superthursday, he's

looking forward to superthursday. stuart: the president holding that rally in north carolina. let's go to oklahoma where fox and friends correspondent todd pyro is. have you found any democrats? >> i am not going to lie to you, the folks at synapse diner in reno, oklahoma, not a lot of democrats we have spoken to. you can count the number like this. haven't spoken to one. despite that, who they thought was going to win out of the democratic party and what was interesting, you heard michael bloomberg with this push, with which oklahoma, all of the money into these states. what is interesting, it resonated with people. a few people they spoke to said they thought bloomberg was going to win, it seemed like it was going to be a biden bernie battle.

take another step back, the minimal polling we have seen, not very high up. in a state below, texas, really crushing it. which they do in oklahoma, tonight will determine what ultimately matters and the voters, not in a democrat primary, >> he is buying votes with other people's money like bloomberg who is buying with his own. stuart: you same biden? >> oklahoma is conservative. he will get it because of that. >> reporter: a tweet the president tweeted out a few moments ago talking due to the importance of oil, fracking in oklahoma michael bloomberg will fail miserably. >> he will fail because he doesn't understand farming, certainly doesn't understand

oil and for him to say they will take away oklahoma's right in texas's right and benefits of oil, not going to happen. >> reporter: he was in the oil business, you have an important -- idea important it is in oklahoma. stuart: i like that soundbite, that will live forever on this program. >> reporter: i will tell him. stuart: bloomberg is predicting a contested convention. listen to this. >> the most likely scenario is nobody has a majority and then it goes to a convention where this horsetrading and everybody decides to compromise, doesn't have to be one or 2 leading candidates, it could be someone with only a small number. stuart: a totally split party, kaylee mcinerney for trump 2020, you have a big smile

because you are loving this. >> contested convention, battle royal on the floor of the democrat national convention and in the second ballot were super delegates are lined up for bloomberg or biden, many mike is done and sanders with the nomination, a coup against bernie sanders. >> i have to ask a serious question about the rally the president holds. i put it to you, if one of those attendees has the virus or been in contact with someone with the virus that would be a black eye for the president. >> we get asked this, has anyone asked bernie this or biden? he can fill the trump rally front row but donald trump is confident, strong leader, taken charge here, unprecedented action, it was the safe

environment. >> >> if somebody in that crowd got it and they have a quarantine a lot of people. >> it is hypothetical -- >> that will continue. >> he is confident he is a strong leader. >> would you rather go up against, bloomberg, biden or bernie? >> i would take anyone of them. biden doesn't know what state he's in. and the senate nomination. >> i think he's a decent man with an extraordinary history of tragedy, i feel for the man. >> in terms of feeling bad for him i look at the greatest recession, the biggest one we

have seen, slowest economic recovery since world war ii, all the pain america experienced under obamacare and stop feeling bad for him. stuart: keep having fun. appreciate it. don't miss special coverage on "cavuto coast to coast" on foxbusiness. no real clarity for the finance ministers, we are adding to the -- a huge gain. at liberty butchumal- cut. liberty biberty- cut. we'll dub it. liberty mutual customizes your car insurance so you only pay for what you need. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

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stuart: steve mnuchin on capitol hill says if there's a need to stimulate the economy because of the virus infrastructure is the priority. let's get back to the main breaking news story, one in the bronx, when in westchester county, close because of suspected case of the coronavirus. what is the mistake of the two schools, orthodox, jewish students. >> i know one of these schools. it makes prudent public health sense to do this if you have a

suspected case of the virus because they have to disinfect the entire school. what you can do effectively. the schools are like petri dishes, everyone is close together, it is a highly contagious virus, this is a prudent move. it is not the same thing you are asking about before. i am proud of donald trump that he is still having rallies, we can't send a message that everyone should stay home but when you know it is a suspected case it is prudent to close the school. stuart: the tests are coming online pretty soon. i've got to go to pfizer. i think it is going up related to the virus. tell me more. >> reporter: they just had a statement that pfizer will be working on a set of experimental pfizer antivirals,

it seems they are a little later to the game. if the results are positive, the process is successful the company could begin testing a drug in humans by the end of this year which shows how long we may have to wait but they are announcing they are working on an experimental antiviral drug and gilead sciences involved in doing the same. stuart: thanks very much. i've got an improvement in the futures to look at. we are looking at the gain of 300 points on top of the 1200 point rally. we need help to cover the remarkable market. joining us, mike murphy, susan and ashley with us. let's talk to mike. that was last friday.

>> this is a volatile market. we saw the market rally, down 300, we rallied 1300. it could be a bottom. the question is are you ready to buy any weakness? stuart: we are off and running. here we go. we have opened up most of the dow stocks, a split at the moment. i was expecting more but so far we have 16, 15, 13 point gain. i call that pretty flat. the nasdaq is up and there is a big pop for apple. we have technical problems this morning. apple is up one%. let's get to some broader coverage. let's look at brian westbury.

we heard the g7 finance ministers and central banks got together in a conference call to use all these tools but there was no clarity. but you say these rate cuts are coming, liquidity injections are coming no matter what. >> the fed will probably do it. there are a lot of people who believe rate cuts will bring the market up. they are worried about a wealth effect when the stock market gets in, they are worried people don't spend. the second reason is more political. if they cut rates and we don't have a recession they can claim victory. i have always believed the fed believes like that. the best news for the market is china is opening factories again. that is the news we are hearing, we -- the data showed today the virus has peaked in china and the rest of the world is 6 to 8 weeks behind. when we start counting a case

at a time and every few minutes we are on top. stuart: light at the end of the tunnel. >> that is what the markets think. and we know we are not going to shut factories down for 6 to 9 months. it is more like 3 to 8 weeks. stuart: what did you buy in this dip? >> we bought microsoft, we bought disney, we bought apple and we bought more uber. uber hasn't taken off yet. that is something apple has taken off, disney not so much yet and uber based on the news yesterday. stuart: what do you make of the news from g7 and central banks, they will be cutting rates and putting money to the economy. is that a plus and wise the market down after that news? >> markets down because we are up 1300 points. what i hear from the g7 is we stand by to act if needed.

as an investor that is all you want to hear. of things go crazy, if this virus expands and have a major impact on global economy, central banks do their job and act. stuart: the market is saying get on with it. >> lack of any clarity from g7 the markets are expecting a little bit more. >> it was an epic day yesterday with 1300 points but if you track what is happening, chinese markets are up 10% despite the coronavirus, down 10% or so. who is benefiting? the bankers, the best turnover, only twice have you seen that. stuart: i want to see some

individual stocks. we have technical problems but we will struggle on. things go wrong in live television. in any other way, shape or form. >> what a big stock for apple. this is settled, half $1 billion with those iphones they throttle with the older batteries. that is $25 for the iphone 6 and iphone 7 and by the way you might be going to the market to be buying one of those doctor tim cook told me last week. stuart: any supply changes? ashley: before boarding flights to the united states customers are being asked if they visited china, iran in the last 14 days, will they be denied

permission to enter the united states? stuart: delta is 2%. american airlines will flow -- below $20 a share. it has bounced back to that point and right now we are at the lows of the morning, 5 minutes and but we are down 120 points. is it just a rebound from yesterday? >> absolutely. the story that is driving the market is coronavirus. since no one knows where the next outbreak is coming or what is happening next that is leading to the volatility. if you are at home, invest. stuart: we are down 140 points and that banner on the bottom of the screen says virus spread ways on stocks, two new york schools have been closed because of the virus. >> suspicion of the virus in a second conference case of a man in his 50 numeight in

westchester county just north of new york. stuart: we expect a number of cases would explode because we are about to give a new test which is quick and easy. ashley: and hard to track. they have disease detectives to figure out where these individuals are being dispersed in westchester county, that works in manhattan so you assume he is commuting as well. you figure how difficult it is to get a handle on who is being exposed. >> the discount has gone up by four. in china johns hopkins says 53% of cases have recovered. stuart: there is light at the end of the tunnel. >> that is the one number that wasn't being reported. we read cases of death but never recovered. we know people recover. i am not going to say it is like the flu but in a sense it looks like it. it looks like sars, looks like the flu.

there is panic out there and that means there is opportunity for investors. stuart: here is my point about the us economy. we don't know what the impact is going to be until we find out how reluctant people are to meet together in crowds, go shopping, go to the mall and travel. i suspect that level of personal activity is coming down and that will affect the economy but we don't know by how much. >> what happened with the selloff last week is the market priced that in, that it would be catastrophic. we don't know if it is going to be or not. since you can't figure that out and i can't figure that out you have to take it out of your investing equation. you look for equality companies. many things automatically based on the us economy may shut down for three months or six months that is an opportunity because i don't think anyone will tell you can't get past it.

stuart: did apple go up how much in two days? >> went up 7%, 8%. best day since 2008. stuart: that is because china is back online with production. >> i think that is right. the market has priced in a really nasty event. but stocks eventually trade on future earnings, 3 to 5 years of earnings the we are thinking about in the future. this may hit earnings for 3, 6, 9 months but after that we go back to being more normal. >> valuations have come down to a more reasonable value at 19 times earnings. some people are thinking there is bargain-hunting to be done. >> names like huber, uber was down on the day, the company made a statement that if this virus gets really bad it could potentially have a major negative impact on our business. it is -- if no one goes to

mcdonald to get it will be bad for mcdonald's. that is what we are looking for and where you find opportunity in this market. stuart: what i have got here is amazon down 6, microsoft down $2.50, apple, google is down for dollars, apple down $2. the big techs are on the downside uniformly but not much. we are not talking gigantic selloff by any means. we believe that on the screen. if you squint, the biggest name companies. united health and coca-cola, green in the top corner. >> united health, big talk is bernie was taking the lead in the democratic side of the election he would be a major negative for united health, the low 300 down to 250 as more people get behind biden and biden winning, you see the

stock - >> healthcare stocks are really cheap but the private companies are coming to the rescue. they are developing the test, developing a vaccine eventually and antiviral drugs we can use shortly. stuart: 9:40 eastern time. mike murphy, thanks for being with us, see you again soon. i got some disappointing news for basketball fans. the nba says no more high 5s and autographs for fans. it is not that bad. we will explain it all. republicans vowing revenge this november. we talked to one hopeful who is part of the 781 republicans who filed to run for congress. we shall return.

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astrazeneca may be able to help. but shouldn't somebody this is be listening?pression. so. let's talk. we're built for hearing what's important to you, one to one. edward jones. it's time for investing to feel individual. stuart: check the market, a modest downside after the huge

rally, the dow is down 113 at most of the dow 30 in the red. i want to go back to ash for an update, new york school closures. >> that case of them in the 50s in westchester county, his child attends a high school in the bronx that has been closed purely out of an abundance of caution. if he is confirmed to have it at his child went to the school they are closing it down just to make sure. stuart: abundance of precaution. next we deal with this. big tech employees are funneling a lot of cash into the campaigns of bernie sanders and elizabeth warren. i thought they both wanted to break up the big tech companies of silicon valley. that is what i thought. look who is your, steve hilton, host of the next revolution who knows a lot about silicon valley. >> i lived there. i escaped.

i'm in new york. stuart: what is this, the employees, the googles and facebooks want to break up the company? >> in england you will be familiar, turkeys don't cook for christmas or thanksgiving. these tech turkeys it seems are voting for their demise. what it shows is the total detachment from the real world and entitlement of the people who work in the tech industry, totally called by a country, they are paid a fortune, everything -- i don't think they can imagine they will suffer as a result of any policy consequence from any candidate who happens to win and they love the woke attitude of bernie and warren and that -- stuart: if you work at facebook

or google -- >> it is all just laid on. they want to keep in their working the whole time, incredible benefits, very tuned from their homes and just have this life of complete luxury. stuart: that is exactly socialism. you and i know it will. bernie is going to win big in california. >> i think he is. california is its own country. the momentum for biden will carry over into california. people say i don't know where south carolina is, won't make a difference, big chunk of the voting block in california are really for bernie, not biden at all. we want to you know why? >> he has worked very hard on the low end of the income

scale, a lot of support for the organizers who work with those groups. he has done really well. you saw that in nevada. the momentum for biden in california will come to a halt. >> here's bernie at a rally in minnesota asking for support of buttigieg and klobuchar supporters. >> as you know pete's campaign was a historic campaign and brave campaign. and first openly gay candidate for president of the united states. and tonight i want to open the door to amy supporters, pete's supporters. stuart: they already said no way. >> they open the door but no one will be walking through it. >> very interesting, it will

come down to a big fat target for donald trump to attack whoever it is because look like it will be bernie versus biden. what that is is socialism versus the swamp. that present a good target for donald trump. stuart: he's having a lot of fun. we will be watching you on sunday night 9:00 eastern. you do your broadcast from california. can you go back? >> maybe they will stop me at the border. stuart: listen to this. did you know disney world has never had a ride that featured mickey mouse until now. >> it has been 100 years. we have a theme park attraction it features mickey mouse, it is the runaway railway attraction.

it is virtual. you ride a roller coaster and feels like you are in the video itself. i feel i have to describe the theme park attraction and rides to you. stuart: i've been to the magic kingdom. i have grandchildren. i'm the man for the magic kingdom, the teacup ride. the only one i could go on. >> we won't believe you until you see photos. this is turning into quite a show? the dow is down 189 points. amazon isn't the only company hurting retailers. we got the sound and we will play it after this break. the invitation to lexus sales event now through march 31st. get 0.9% apr for 60 months on all 2020 models. experience amazing at your lexus dealer.

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that takes a lot more than an alternative. so we took our worst vice, and turned it into the dna for a better system. materials made from recycled plastic woven and molded into all the things we consume. we created bionic and put the word out with godaddy. what will you change? make the world you want. stuart: target reported earlier today online business slowing, week sales over the holidays, it is at 108, that is where it is. our retail guy is with us, you are a big supporter of target. what happened? it is down a little at 108. what is going on? >> we knew their holiday season was disciplined, toy sales very

we, electronic sales and home goods sales with their well-positioned for the future. it is good at 20% which is the pace of market growth so they are doing fine and most importantly they sell products consumers needs and with the coronavirus everyone is stacking up so i'm not worried about them at all. stuart: coles saw a small boost in sales, that stock is up $0.20 at 38. kohl's you like? lots of ways of doing business. >> i'm not a fan. they are in a difficult place. they have a great ceo but they are facing multiple challenges so their sales were flat. they are forecasting the sales remain flat. the margin rate was down.

profits are down and they are saying it will be the same for the coming year. they are a midmarket apartment store. is an unbearable place to be. mostly apparel, highly discretionary product, sales have been down for a decade. they are a department store. they are in a tough place and they face a lot of challenges. stuart: you dealt with that short, sharp and to the point. thanks for joining us. sorry to so short. democrats ganging up on bernie to save the moderate vote, the theme of my take which is coming up next, dow is down 300. at fidelity, online u.s. stocks and etfs are commission-free. and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk (groans) . .

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stuart: 10:00 eastern. do we have news for you? blake burman, blake it, please. reporter: federal reserve will cut by 50 basis points. i will read the statement by the fed in full. quote, fundamentals of the u.s. economy remain strong however the coronavirus poses evolving risks to economic activity. in light of these risks and in support of achieving its maximum employment and price stability goals the federal open market committee decided today to lower the target rate range for the federal funds rate by one-half a percentage point to 1 to .25%. the committee is closely monitoring developments and economic out look and will use

its tools to act as appropriate to support the economy, voting for the economy were list of fed members including jay powell. headline here. 50 point basis cut. at the white house, stuart, you know that this is something that the president has been championing for, for not only for the fed to jump in, but potentially even to jump in due to coronavirus. i asked the president yesterday do you think the fed needs to take an emergency measure. the president said to me yesterday, stuart, quote, i guess the market is up today, our country is very strong economically as you know. that is a wrong quote. in any event the president told me was waiting for the central banks to see what they would do today. as we know there was a g7 finance ministers conference call that took place at about 7:00 earlier this morning. now we know the action from that call, 50 point basis cut, something that the white house generally speaking has been

pushing for. stuart. stuart: thanks very much, blake. 50 basis points down on the very short-term interest rate from the fed right there and it has had an immediate market reaction. as you can see the left-hand side of the screen, there is a ton of green. we're now up 230 points. as we speak up 230. that means there has been reversal of 500 point swing from just before we got the news after the fed rate cut to just afterwards. a 500 point swing. i got this wrong. i was sitting here saying i knew the basis point cut was. i thought we would get modest point. susan said 500 point. 15-love, kid. george, you were saying prior to this you would not die -- buy the dip. will you buy it now? >> no, stuart. i think it is too early.

i think we get a lot more negative news from the virus earnings, economy. i'm very surprised the fed has been reactive. i think they should have cut 50 basis points. that is a good decision, but do it right after last week when we had a big downturn, it looks reactive, reflexive a little panicky on their part. after they wrongly raised rates in 2018 and sent the market into tailspin they cut real quickly. i think they're reactive. i would have waited a couple weeks. stuart: let me press you on the virus, it is widely understood, we have a new test on the scene that new test will be used maybe a million new tested in the next week or 10 days. that will reveal a lot more cases in the united states. but that is known. that is expected. i think the markets are looking beyond that, aren't you? >> i think the market will eventually look beyond all this i think logically the virus is not that big of a deal in the grand scheme of things

especially compared to the flu. so i get that. i think the market panics when it gets bad news. sometimes you wait it out, let it have its panic attack before you let n i don't think we're in a hurry. stuart: i would have missed it, if i was following you i would have missed a whopping great big bounce. >> we have a huge decline last week. you have to let that settle. i don't think you chase one or two-day bounces. hopefully you're invested already. you're on the ride as it is. a real investor is on the ride period. they're not trying to trade bounces up and down. i think it is a good time to be reflective, if you have exposure on, don't take it off, at the same time, watch for a while, see if you don't get a better entry point at some point. stuart: watch this show. watch the market as it goes. thanks for joining us. mike murphy, brought him back in the studio we need your comment on this 50 basis point cut by

the federal reserve at the top of the hour. immediate 500-point turnaround for the dow. you have the grin on the face that says you were expecting it. >> we were expecting it, stuart this is why when you have a massive overreaction in the market you want to have some dry powder ready to put to work. stuart: wait a second. what does it help? is it symbolic for the market that you get a 50 basis point cut or does it help the economy? >> it really helps the economy. more money coming into the economy. small businesses, real estate, construction, manufacturing. you can try to discount it but for a fact more money in the economy is going to spur growth. it is the right move, we needed it and here it is. stuart: ash, can you check the 10-year treasury for me. i'm sorry i can't get it on the screen immediately. ashley: 10 year is 1.15. it has gone up. stuart: yield up as the fed cuts rate by 50 basis points. ashley: money out of treasurys. stuart: out of treasurys, into

stocks. we have a gain of 2to the dow industrials. add that on to nearly 1300 points yesterday. that is a significant bounce from friday's low. >> most certainly is. what the fed is signaling stuart, they're not only looking to stimulate the economy, we're here to help, we talked about it in the earlier block, we're here to help if the economy gets impacted by the coronavirus. read it any way you want but this is stimulation for the economy. good for asset prices. good for stocks. stuart: susan how did you get it so right and i did not. susan: we heard they were cutting interest rates soon, this week or next week. it is super tuesday as well. clear the decks i would say unhurdled vote in 2020. i think that is a pretty good thing for the american public. stuart: remember. this conference call this morning, finance ministers and central bankers were getting together. the only action we've seen is

from the fed just moments ago. can we expect more from finance ministers and central bankers? >> i'm not sure that is true. bank of japan has been spending, china cutting rates and do they want more coordinated action between the big economies? stuart: do you expect more, from the europeans for example? ashley: will it help? >> they're ahead of us the europeans. ashley: yeah. >> i think the president wanted to get out in front of this. the fed wanted to get out in front of this so here we are. stuart: brad blakeman is with us, republican kind of guy, close to the white house. the president wanted this. do you think the fed is responding to the president? >> i think they're responding to the market, the need for this kind of investment. i think it's smart. the president was smart to forecast it but i don't think they're waiting to hear what the president said this was a necessary movement at this time in order to spur growth. stuart: i should point out that the rally has been cut in half.

now we're up 115 points. maybe i wasn't as wrong as i thought. there you go. we're up 111, 107. the rally is fading a little. kristina at the new york exchange, what are traders saying down there? >> i have traders saying nobody expected this right now. the bond market if anything priced this in two days ago, the moment it hit the wire it got so loud in here. we saw the dow, we saw quite a rally. we're coming off that rally. it was up well above 350 points. it is coming down. one trader gave me a good analogy, it is like musical chairs to figure out what stocks to buy and what to sell and when musical chairs stop, you don't want to be the man standing. i asked him if there is anything looking at before the meeting powell will have 11:00 a.m. he will have a conference 11:00 a.m. eastern time. i'm sure we get key words that come out of the fed meeting. that will start algorithms to start moving. this trader is not taking any

chances because of that. a lot of these guys behind me are saying it was very, very unexpected in terms of timing of this, but that the bond market already priced it in a few days before. back to you. stuart: kristina, the news here is there is going to be news conference held by chairman jerome powell at 11:00 eastern time this morning. so all hands on deck. central bankers, interest rates, all rest of it. you obviously approve, mike? >> i do. we expected this to come when the fed has their meeting on the 18th of this month, the fact it came earlier, a little bit of sell off coming what did the fed see or why did the fed need to act. talk after quarter basis point cut before the meeting and at the meeting, but why did did they need to act now? what if anything they saw that made today the day they had to act and move? stuart: the market responds to this 50 basis point cut. we were up 300.

now we're up70. all over the map. we have 25 of the dow 30, make that, i can't do the math. most of the dow 30 are in the screen. i see four in the red and the dow at this moment is up 181 points. ashley: the market was expecting it but also reaffirms there could be tough times ahead, right? there is double-edged sword here. yes, it is god the fed has the markets back. you the market always knew that, they have taken the action but shows there is a lot of concern out there. stuart: george seay you want to get in or stay on the sidelines? >> i added friday. i will not add in until the market goes down. i think the fed is looking pan kickky. i would have waited until the end of the month. i would have done the same thing, would have cut 50 i think it looks knee-jerking and responding to trump and i would

have waited. stuart: i see nodding heads. susan: seems what the market is dependent on what the fed does. you can't take away the punch bowl and market seems to fall. the fed has to let the markets find independence on their own at some point. stuart: i want to know why they cut 50 basis points now. as mike said, what did they see to make them act now? >> that is the important point. they wanted to make sure the economy would stay on strong footing. we've been in this 10-year bull market or 10 years of market moving higher. as the fed cut rates or raised rates. the fed is reacting to potential news, potential slow down that is out there. remember algorithms and computers are still driving this market so a couple hundred point swings one way or the other are going to come. ultimately a 50 basis point rate cut is a positive for the u.s. economy which will impact stocks postively. stuart: i take your point. that rally is fading. we were up now 80, now up 100

points. a lot of strength come out of it, maybe because some commentators on this program saying that the fed looks like it is being panicked into this. they're against you. >> in susan's interview with tim cook talking about not looking at day-to-day fluctuations but looking out. he said apple is the same company now as it was four weeks ago. susan: long term, yes. >> if you look at the market right now, if you're an investor you're not sure whether or not to get in. if you knew a 50 basis point rate cut was coming that would be push to get you into the market. as an investor this is news you want to see longer term. maybe not necessarily today but longer term sues sus what about two mandates for the federal reserve is inflation and full employment? there is no inflation. makes you wonder if there is a change how the federal reserve now views the market and how they react to market guy races we've seen? >> you got that right. i will quote you big name techs here. apple holding on to the gain, up

a buck 20. apple is at 300. google up $17, up above. microsoft turning negative, down a buck 45. amazon up $20. market is all over the place. got the boards back excellent. apple is at $300 a share, whatever else you got, show me please because i want to see how this market is actually affecting individual stocks. alibaba is down a buck 60 at 209. baidu, another china-based stock is up a buck at 121. jd dot-com another china-based operation. that is up. boeing, the world's premier plane maker if i can still say that, i think i can, i own a thin sliver of it, only at 290, how about that? the rally completed faded. now we're down 16.

my bet is this the market is worried the fed is it panicked into something and we don't know why it is panic and we'll find out at 11. i'm going against you, mike. >> i would agree with you but one thing i throw in there, we don't know what is driving algorithms that drive this market. that caused a 350 point pop and now the 400 point selloff off that since we don't, don't try to figure it out. trying to figure that out is tough. we could turn around and be down 300 in a few minutes or up 300. people tune in the show look for opportunity and value and quality names that show off and buy into them. if you have a 50 basis point cut by the fed, that should gives you more conviction the market is going to move higher. stuart: is there any argument we'll get sharply lower mortgage rates, that the refi market will explode. any argument with that?

susan: don't forget mortgage rates track 10-year treasury. stuart: down to 1.15 on the 10-year. susan: it is not 1.03 we saw as record low a few days ago. will they go down? probably. will they go down recently trade levels? maybe not. stuart: get a five-year at justable couldn't you, around 2%. ashley: just over two. stuart: couldn't you do that. >> absolutely, not only mortgage rates, small business loans, construction loans. this is a way to help businesses grow. there is a lot of cheap money out there helping the economy grow. i think the bear case, what happens on the other side of this. what happens if we're inflating too much. i think right now the fed saw a reason they had to do this at this point in time. stuart: now we've completely lost that rally and completely reversed it. you have had 500 point swing. i'm trying to work out -- we had two 500 point swings actually. we were up 381 after the fed

announced news of the rate cut, up 381. now we're down 169. i'm flying to do the math. that is a 500 point swing. before that we had a 500 point swing to the upside if i'm not mistaken. what have you got, susan? susan: helping international markets, emerging markets index includes china, brazil, up 1.4%. stuart: why? why would that help them? susan: more money going in to chase undervalued stocks and beaten down. maybe money comes out of the u.s. and federal reserve. this frees up moves around a trillion dollars or more, some of that goes to chase gains outside of the u.s. borders. stuart: george seay you are still there? >> still here. stuart: are you going to claim victory, short-term victory? >> i think market up 380 is one of the easiest shorts in the

short term. market is almost always up 6 to 12% after a week like last week. next six months the investors have opportunities to buy. i would keep powder dry for sure. stuart: i have to believe this is difficult market for the individual investor, when you see 500 point swings, that is not the time when the little guy so to speak the little guy is in and out so fast. extraordinary risk for your money there and paying full tilt for your stock. if you're an individual investor buying on margin in this market, i wouldn't do that. ashley: day trading what could go wrong. >> you have to stay true to the old adage for individual investor, buy fear and you sell greed. so they need to be looking for when people get really nervous and really panicking and close your eyes and buy. that is the way you do it. stuart: buy fear and sell greed.

ashley: warren buffett's philosophy. >> it is true. it works. susan: benefiting from all volatility are investment bankers. you get commissions for every trade. 401(k) turn overs are at 11 times. only twice since 2018 has that happened. this is fear and panic. people don't know how to position themselves -- >> what do you mean 401(k) 11 times? what does that mean? >> 401(k)s are set. how much do you trade a 401(k). turn over is 11 times, meaning that you have i guess you're changing in and out of stocks 11 times more than usual. highly unusual behavior and activity. only happened twice since 2008. stuart: if i was in my 20s, 30s, even in my 40s, i would do that. i have a 20 or 30 year time horizon. long time before i get the money tax-free. >> unfortunately the history shows, general public, investing public tends to sell low and buy

high. what i'm trying to get the point across, don't chase some speculative coronavirus stocks. buy value stocks on selloffs. if people stick with that, a very good long-term recipe. trying to time day-to-day movements in the market or intraday movements in the market, unless they're professional traders at home people should stay away from that. stuart: i'm -- don't try this at home, ladies and gentlemen. don't try this at home. but if you've got an ira, a rollover ira, you have got some money in it, you could buy something at literally 10:30. if it goes up a couple bucks you can sell it a couple bucks at 10:31. you don't pay tax because it is in ira. >> as long as it goes up it is a great plan. susan: by the way we're 20 minutes after the announcement. are you surprised we haven't heard anything from the white house just yet, no tweets or statements? this is something president trump has been pushing for in

comparison to the rest of the world. stuart: on your screens price of gold has been beaten down. went below 1600 bucks last couple days. it is up 31. oil has come back to $47 a barrel. at the height of the selloff last week, oil was down do $44 a barrel. doesn't mean much to average folks but that is quite a move, 44 to 47. some drillers will be profitable at $47 a barrel where they were not at 44. gold going up a bit more, $32 higher, 1627. since we have the technology straightened out show me the yield on the 10-year treasury please. i want to prove my point about mortgage rates going down. we're at 1.13%. the yield is down 3 basis points. crude oil at 47. gold 1627. the dow is now down 32 points. it is wild swings all over the place. maybe things might settle down

after 11:00 this morning eastern time that is. that is when the federal reserve, jay powell will hold a news conference. that means i guess he is taking questions? ashley: we hope. stuart: somebody is going to ask him why now, why so much? as mike murphy said, what do you see that we don't see? why did you do this? that is what they are going to ask. >> the answer will be very important. more important we have selloff based on the coronavirus and if we're getting past the coronavirus. on other side we have accommodative fed injecting more stimulus to the economy, i think net-net the idea you want to buy a selloff is bigger today than it was before we got this fed rate cut. it is a great opportunity. you don't need to chase, if there are quality names out there people need to put money to work in them. stuart: treasury secretary steve mnuchin is on capitol hill. he is he have iting. he just said the treasury will use all options to help any

sector of the economy hurt bit virus. ashley: these are words of comfort basically and to try to create some confidence. stuart: wait a minute. the 10-year has just gone to 1.09%. literally seconds ago. ashley: when you said it was 1.13, it was 1.09. stuart: i got the wrong quote. that was my fault. 1.09 on the 10-year treasury. that is a flight to safety. money floing out of stocks into treasuries and back into stocks. doing that all the time. susan: people are confused at this point because this is the first interest rate cut in between fed meetings since 2018. people are reminded what happened during the global financial crisis. are you still surprised futures pricing 60% probability of a rate cut in april. stuart: another one? susan: another one. stuart: the 50 basis point cut and market thinks you get

another quarter-point cut in april, next month. ashley: forecast was 1.25% by end of the year. any way they do it. stuart: no matter how you slice it mike weir downward spiral for low interest rates that could be a problem. why is it happening? >> it its happening the president will tell you it its happening because it is a global economy. harder for the united states to compete on a global economy if interest rates are much lower in other parts of the world. instead of raising rates when the fed was doing it, he was so adamant we need not to keep raising rates. do the opposite to cut rates. appears what we're getting from the u.s. economy appears the president was correct. stuart: we're up2. literally seconds makes a huge difference on this market. what have you got? susan: it has been suggested during the downturn because of the coronavirus maybe president trump and white house should suspend the trade war. we heard from steve mnuchin, treasury secretary, he is not

considering suspending tariffs on china at the moment but will look at options needed to help that was something bandied about. looks like mnuchin is putting cold water on that. stuart: if you're just joining you're looking at volatile situation at 10:00 eastern time. the federal reserve surprisingly turned around we're cutting 50 basis points off the low interest rat immediately. that was a surprise. some kind of action had been expected but not as sudden as 10:00 eastern time this morning. we have had other central banks. the japanese are pumping money. susan: that's right. stuart: china has a stimulus program, i'm not sure or when it hits but they have one. susan: providing hundreds of billions of dollars, cutting taxes. they have not cut interest rates surprisingly despite the interest rate at 30 year lows.

$600 billion in 2008 and cutting interest rates finally. stuart: edward lawrence is following this while embedded within the sanders campaign in vermont. do you have anything to add from the sanders campaign in vermont? reporter: stu, not from the sanders campaign. i was listening to your debate about why this may have happened right now. the federal open market committee, the committee changes members, four of them from last year to this year. the four members who come in seem more apt to move on this neel kashkari, president of minneapolis federal reserve, pushed hard to have rate cuts. the year before he wanted rate cuts. so you have new members. the dallas federal reserve president robert kaplan, more apt to make a move if something is needed. patrick harker, the philadelphia federal reserve president not afraid to make a bold action. these are new members coming in this year. last year's fed may not have

made this action as they were more on the hawkish side, more cautious. this year's fed more bold i would say, new members coming in willing to take action if the action is necessary. stuart: while you're with us, what can you tell us about the sanders campaign in vermont, just to change the subject radically? reporter: sure, sure. very excited feeling among the people here in vermont. this is senator bernie sanders's home state. they're is lot of excitement around the bernie sanders campaign and the energy he is generating. they're expecting huge crowds for his rally he is expected to have later on as the polling sites close. they are expecting to come out on top, that the campaign is expected to come out on top in delegates and hopefully try to close the door. stuart: yeah, right. reporter: joe biden is gaining momentum with the endorsements. stuart: edward, that was an excellent segue away from money into politics and i will keep on that theme because brad blakeman

is waiting patiently with me, republican stat strategist he is. do you think bernie can wrap it up today? >> no, i don't. i think we saw with endorsements of those who dropped out of the race, buttigieg and klobuchar. that the establishment is finally accepting joe biden. they chummed the water for -- stuart: chummed the water. >> seriously, what have they got, a big fish they got bloomberg. they didn't worry about raising money, bloomberg spent half a billion dollars of his own money. guess what? nobody is talking about bloomberg anymore. they're talking about resurgence of biden. the question will be what happens after the convention. do you think bernie and his troops will go away? they will fight for every plank of the platform. whoever the nominee, joe biden, will have a noose around their being neck, the democratic platform.

stuart: will bernie supporters back joe biden as the nominee? they will be mad as hell? >> true. they get a platform and speaking role and bernie feels he got a fair shot, yes i will belief they will hold their nose. it is anybody but trump. the question is, if bernie does not get a fair shot, if he does not get his platform, and does not get speaking role and he is not accepted yes i think the bernie supporters will sit home. that's great. stuart: i think that party is at war with itself. >> no doubt. stuart: goes towards the convention and election badly, badly split. i think that is the way it stands. >> if it is a brokered convention all hell breaks loose because you will have a war on the floor of delegates. numerous ballots. then you have got a platform. stuart: you have got bloomberg who could buy votes. i use that word advisedly, but he can buy delegates. you can do that. here is money for your district or your cause, whatever, that is

a way of buying your way in. >> bloomberg could turn out to be the ross perot of 2020. he could be a spoiler. has no chance of winning. stuart: some people in our audience who remember the election much 1992. i certainly do. had it not been for ross perot bush 41 would have a second term in my personal opinion. >> correct. stuart: ross perot gave the election to bill clinton. >> absolutely. stuart: do you think bloomberg will give the election to donald trump? >> very possibly. stuart: that is what you're thinking. hold on a second, susan. let me go back to kristina at the new york stock exchange. what have you got for me? >> commentary what i'm hearing on the floor. the full rally lasted a little bit over 13 minutes. we're seeing a lot of volatility. i asked one trader, hey somebody must have made a lot of money. he said no, the volume was very thin. there weren't a lot of buyers at the peak over there. traders consensus around me,

seven, eight, 10 guys around here are saying it wasn't the right move at this moment in time. if anything it is creating panic. one trader said, why not just talk it up. have the press conference. talk about how we'll be ready, proactive instead of actually cutting rates right now so we don't have to scrounge for pennies in the near future? one other guy told me it is like sticking a bandaid on leaky pipe. i'm assuming he is not meaning one of those waterproof bandaids. back to you. stuart: thank you, kristina. i will break away from money for a second, go back to the virus. we had a development in new york. i don't think this plays on the market. ashley: no. at least not yet. stuart: intriguing he will development for new york. ashley: second confirmed case in westchester county. a man in his 50s. his travel history shows he has not traveled to any hot spot areas for coronavirus which indicates the first community spread infection in new york.

he also has a child that attend as high school in the bronx. that school has been closed down as a precaution. stuart: two schools closed? ashley: two schools. another in mamarek, another community up towards, north of the city. two modern orthodox, jewish orthodox schools. stuart: that is the situation as it is developing in the united states, six deaths, two schools closed in new york. ashley: correct. stuart: do you have an update on iran? susan: get back to interest rates and finish on coronavirus. when you hear the federal reserve says at top. hour we're following what other central banks are doing. australia cut rates by quarter point. lowest ever, half a percent. canada will also be cutting interest rates in just a few days as well. ecb expected to cut interest rates by 10 basis points because of effect of the coronavirus. there is 60% probability that the ecb will be doing that.

98% chance the bank ever lending land will cut rates, in a few weeks or few days time by 25 basis points. the fed will tell you they are following everybody else. stuart: that is what they will say. good stuff. jack how much, baron's senior editor on the phone. -- jack hough. we have interest rates cuts around the world. does that help the stock market? >> i think it does. kristina's report interested me. the stock market is taking their sweet time trying to figure this out, is this good news really bad news or bad news that is really good news? i don't think the rate cuts will have any profound impact on the real economy but at the same time i don't think you run a big risk of stoking inflation or anything like that right you no. i think longer treasury bonds had already signaled this was the kind of cut that the market was expecting. i think the fed, you know, tried

its best to show a little bit of surprise and shock and awe. that is not really catching on right now. but the question to ask yourself is, you know, what is going on right now in the headlines will pass. you're buying stocks today. i would assume for the next five, 10 years. what is going to compare favorably with the stocks you're buying? certainly not bonds with rates continuing to move lower. stuart: that is your long term horizon. jack, hold on for a second please. i have with me now james awad, a frequent guest on the program, a valued guest. jim, welcome back. >> my pleasure. stuart: i see here from my notes that you are saying this market will get worse before it gets better. that is not like you? >> well the big picture is that we will get over this. the virus will be cured. there will be a vaccine. the economy will then resume growing and, you don't want to be a seller of stocks based on the short-term headlines. that being said, the news in the short term is going to get

worse. earnings estimates will come down. the estimates of economic activity will come down. companies will be pulling guidance. what you really hope here, is that you don't tip consumer confidence. that last weekend people were lining up at costco and stocking up on goods. what you don't want to see a material change in consumer confidence, not traveling, not going to the movies. in the short term there is very little visibility. be prepared for bad news, weaker stock market. the bigger picture as the previous commentator said, look out over five years, bonds at 1% versus stocks, it is a no-brainer, stocks. what i would say buy a little bit every day the market's down triple digits. have your basket, stocks you want to own. gradually buy them over the next few months, you will end up making money. but in the short term there will be a little bit more pain. stuart: i thought last friday when the dow closed way, way down for the week, 300, 500

points for the week, we were 25,000, just above that level s that not the low? will that low be tested again? we'll drop below 25,000 at some point? >> i would guess, yes. as long as the, as long as you keep getting spreading of virus, closing schools, travel restrictions, you will probably go -- it will take a few months. stuart: the word, doc siegel this morning said we'll get a new test. it will be administered by a million, next 10 days maybe. you get a lot more cases surfacing. that will be kind of bad news you're talking about? >> when earnings estimates stop going down, it is reflected in stock prices. you have curbing in new cases you will know, the stock market will smell it, smell it out in advance and start going up. what i'm saying the market discounting mechanism. right now the market can't discount how low earnings are going to get or how much economic activity will be

contractionary. it is early. emphasize stocks will do better than bond over the next two or three years. stuart: jim awad, and george seay saying don't get your feet wet right now. don't buy the dip. okay if you have five years out, but don't buy it right now. they are saying george seay, jim awad saying exact opposite of this man right here. his name is mike murphy. >> who am i to argue with mr. awad. i used to be his doorman. >> it he was in high school, a part-time doorman. >> i'm in no position -- >> now he can buy me and sell me. stuart: by the way i had the same tutor at university as mick jagger, if you want to go back history there, that is the truth. >> trying to pick a bottom, respectfully trying to pick a bottom is not a good plan. we could retest 25,000. we may never see 25,000 again in

our lifetimes, in history. so being that you don't know the bottom, if you have a quality name out there, i point to apple again, if apple gets down in the 250, 260 range, with everything you know about it, you say is this same company it was three weeks ago, four weeks ago as tim cook said? the answer is yes. i missed it at 330. i will buy it. we talk about microsoft. i have didn't own microsoft. you sold microsoft. the stock had huge run after based on cloud service. came down to 150s. i bought it. >> we're not disagreeing. i agree on those two games. i said don't expect to make money next 30 or 60 days. stuart: george seay with us i think he still is. >> still here, stuart. stuart: would you buy microsoft and or apple now on the grounds they are terrific companies, almost guaranteed to hold their own over the next few years? >> if you bought microsoft in 2000 at 58, you didn't get back to 58 for 17 years.

no, i would not be buying today. microsoft eight years ago traded about 12 times earnings. apple about three or four years traded at 12 times earnings. they now trade in the high 20s to low 30s as multiple. i think patience is your friend. i really do. next two to six months, we'll get a lot of bad data, a lot of coronavirus information. you can afford to be patient with better entry points. i agree with gentleman, five years out you will be good with stocks, totally agree with that. that is a long time. people have short attention span. they should sit tight, wait for better entry points. stuart: that is long time with my age. mike murphy, you have to go, give us last 30 seconds of wisdom. >> last 30 seconds. china blocked out some of headlines around the coronavirus. look what accommodative fed does for the u.s. economy. if you have dry powder on the sidelines, which you should have look for quality names. i'm not talking about apple at 300 where it is now. i'm talking apple if we have

pronounced sell offs 1000 point days which could come back if coronavirus spread, if it does. that is open student to buy. being afraid and panic something not an option. picking absolute bottoms is not an option as well. look for quality. when you get discount on quality, put money to work. stuart: if you're joining us let me recap what we've been seeing today. extraordinary volatility, 500 point swings for the dow industrials. the main event took place at 10:00 eastern time. when the federal reserve surprised a lot of people with a surprise 50 basis point cut in interest rates. that was followed by a rapid rise for the dow industrials. it went up over 300 points. then plunged down about 160 i think was the low. i'm not sure the exact numbers. it was something like a 500 point swing very quickly. since then we have been up and down all over the place. right now, pretty flat, up 26, 30 for the dow. up nine for the s&p.

31 for the nasdaq composite. okay i do want to make one thing also clear. there is an update on the virus situation. two schools in new york city have been closed. ashley: both related to the case, second confirmed calls of this westchester man. a little bit more information. he is from new rochelle. he has children that are in those schools. he is an attorney who works for a law firm in miami. he has not been to china or iran or any area that has seen an eruption of the coronavirus. so it's possibly the first community spread case of the virus. so interesting but he was commuting. showed symptoms last week. started to get sick. he has underlying respiratory illness which makes it more complicated. they have no idea where he may have contracted it. stuart: there is news from doc siegel who told us there's a new way test which will be sent around the country, a million test kits we understand, over

the next 10 days. that means you're going to see an explosion probably, not for sure, but virus cases here in the united states. that will come up. that will be presented to us at some point in the very near future. susan? susan: what about a vaccine in we heard from nih officials, dr. anthony fauci, we should know within several months whether gilead's coronavirus treatments work. implementation could be imminent afterwards. because they had the public press conference yesterday with president trump and dr. anthony fauci. president trump pushing for some sort of vaccine treatment within months. dr. fauci said it could take a year but might be imminently implement it. stuart: jim awad with us, would you describe the virus as the black swan, a black swan? >> no. let's call it a gray swan. it came out of nowhere. it is a surprise. it will have impact but not a

fatal impact. we'll suffer pain. just like going to the dentist, get in the chair, let them do his work, do the drill, get up and walk out of dentist. we'll suffer some pain. it is unexpected. you will notice it as investor, you will notice it as businessman, you will notice it as a consumer but don't lose the big picture. we're america. we'll get through it. we have the most productive society in world and most productive companies, when you look at we'll see kel from the virus to the election before the end of the year. that means next 60 days can't be dominated by virus. stuart: dealt with the market, interest rate cuts and virus. i also want to deal with politics. today is super tuesday. it is monumental event in the political calendar. it is today. in 14 states, people are voting for the democrat of their choice. highly likely bernie sanders will win california around will win texas. he will also do well in

colorado, maine, massachusetts. by the end of this day, he may well be not unbeatable. certainly in a commanding position. the response to that on part of the democrats haas has been flat-out panic. democrats don't want a socialist at the head of the ticket. they reorganized themselves. klobuchar is out. mayor pete is out. they have both thrown their support to, joe biden. they used to discount him. now they love him because he is the great moderate hope. there is also of course, mike bloomberg. he is going to stay in the race no matter how he does today, and stay in the race with a great deal of money. the bottom line here, at the end of this day, going into tomorrow, you will see am democratic party split three ways. bernie, joe biden, mike bloomberg. it is on to the convention still split. it may very well be a split and contested convention.

chip roy is with us. is think any doubt that bernie wins your state today? >> let's be clear that today is a fight in texas and around the country on basically which democrat is going to be put out to pasture in november because the american people are really getting sick and tired of what the democrat party is selling and their division. they're really enthusiastic about our economy, about jobs, about low regulation, about stronger standing worldwide. about good judges being appointed. they see leadership out of the administration this is more noise today on super tuesday about who is going to lose in my home state in texas in november. stuart: there has been a lot of talk about how texas could swing to the democrats, could become, i guess the expression is, purple. i don't know the exact expression. do you think there is any chance

that president trump loses texas in november? >> no. i can tell you, just last night we saw beto o'rourke coming out to give his grand endorsement, coming out for joe biden. look, beto o'rourke got defeated by ted cruz two years ago. i go around my state, talking to to people moving to texas, they say people are turning texas blue. they are fleeing high regulation states, california, state of washington or new york, they moved to texas for freedom. i eleave we will expand our margins in texas. texas will lead prosperity and growth behind our energy renaissance. by the way bernie sanders wants to ban fracking. think of that, bernie sanders wants to go into texas the selling of banning frack frag, fundamentally changing political landscape around the world, strengthening the american economy, strengthening our ability to hold the line against russia and places in the middle east. frankly making carbon footprint in the world less.

go ahead. stuart: one last one. it is a very active news day. i want to get this in. president trump said he would consider closing the southern border. by that he means slowing down and testing people coming across the legitimate ports of entry. i suspect that would have a profound negative impact on the texas economy, am i right? >> well certainly we want to have a situation where we're having negative economic impact of stopping flow but here is the question i'm asking dhs, i sent a letter to them to hhs and dod, what will we do about the southern border to insure we're dealing massive illegal flow across the border? what will we do if we have containment problem? we had 37,000 people apprehended, stuart. everybody thinks that the crisis abated but it hasn't. 37,000 people. what if someone is infected in facilities along the border along rio grand where cartels profiting across the border and

human beings going across the border. everybody is walking around like chickens with their heads cut oaf about the coronavirus. our border remains porous, remains open, 120 miles of fencing while good doesn't mean we have secure border. we're working hard, to make sure we secure it. we have a plan to deal with anybody who was infected in the population along the border. stuart: got it. congressman. thanks for joining us. busy day. thanks for being here. >> appreciate it. stuart: treasury secretary steve mnuchin is testifying on capitol hill. what is he saying? ashley: he supports the fed rate cut decision. he says the coronavirus will have short-term impact on the u.s. economy. very different from the 2018 financial crisis. again he applauds the rate cut. says it is non-political. so there you have it. stuart: so he is on board? very much so. ashley: on board, good move. susan: first rate cut in between fed meetings since 2018. it is to know that jay powell staked his chairmanship on

extending longest economic run in history and longest bull market run. so he has his legacy to protect as well. stuart: the news came at 10:00 eastern. a 50 basis point cut in rates by the fed. already the president jumped on it with this tweet. here it is. the federal reserve is cutting but must further ease and most importantly, come into line with other countries competitors. we're not playing on a level playing field. not fair to usa it is finally time for the federal reserve to leed. more ease, and cutting! ashley: not enough. stuart: not enough. ashley: not enough. stuart: he wants more. what do you say to that, jim awad? >> he is some piece of work. stuart: president of the united states. >> you don't get in donald trump's way. he will keep coming at you. i think the fed is in a very difficult position here. what makes the palpable they're following other banks around the world on the way down. they're just staying in line. the problem is, it reduces the tools, what they can do further

in terms of economic weakness. when you're at one, 1.25, you can only -- they're in a difficult spot. stuart: that tweet mentioned easing. that is shorthand for pumping money into the economy as opposed to just cutting rates. >> i think if there is another step, that will be the next step. it will be non-traditional, non-interest rate easing of the economy through regulation, through supervision, through balance sheet. it may and probably will become necessary if this continues. stuart: you got to remember, i heard you get technical here. >> yeah. stuart: part of the problem for america having interest rates where they are here and everybody else down there, the problem is you have a very strong dollar which makes american exports uncompetitive. we're priced out of a lot of markets but if you cut rates. >> right. stuart: you pump out the money,

you bring our rates down to their rates and dollar coming down to their level. that is the theory. >> the other side of that coin you're doing a lot of damage to the financial institutions who can't make money in that type of environment. just look at banks in europe to see that. stuart: disaster. >> this is a very -- the fed has to thread the needle here. i suspect you will see, you will first see non-interest rate action f it gets worse you see more interest rate action. you better hope and pray that is enough to jump-start the economy and contain the virus and there is some pent-up demand, maybe some day after the election a fiscal package to do it. but if the fed, everything they can do and economy still contracts, that is not a good situation. think powell is being deliberate. i think he is being reasonable. i have confidence in him. stuart: we want to spread this around to as many experts as we can. joining us on the phone is david

bahnsen. david, obvious question, we have rate cut from the fed, possibly rate cuts elsewhere and possibly easing by the federal reserve, pumping money into the economy. will that help the market? will that help the economy? >> it will not help the economy. it may very well help the market repricing sense. boost equity risk premium as if 1 1/2% fed fund rate was not already helping equity valuations enough. there already is some global cord names. you saw yesterday's japan's central bank bought 400 billion yen of their government bonds and pledged to do more. i agree with your prior guest, that is what you will see more of now, effectively quantitative easing. stuart, it is not that i'm down on the decision. i want to be very clear why they're doing it. they're doing it to give a psychological boost to the

financial markets. it didn't do anything to the real economy. stuart: and market as in the dow industrials are at this moment down 111 points. we're at 26,500. susan, what do you have to add? susan: heading into the day i told you cme, futures markets pricing in 5% probability, zero percent interest rates not even by end of this year, by summer. i imagine that probability is going up. jpmorgan says there is higher probability than market is pricing in of zero rates. stuart: 9% probability according to the market of 0% interest rates. i presume that movement down will be led by other countries which have sharply lower interest rates? ashley: they're in negative territory. germany. stuart: in other words, the probability is that we would match them? susan: that's right. stuart: we would have to follow them down. susan: last night australia cut rates. canada will 100% cut rates. bank ever england probability they will cut rates as well.

we're just following everybody else. stuart: david bahnsen i'm not sure 0% interest rates if we get there is good for anybody. >> it is a horrible thing. first of all signals a level of panic like what we had at the financial crisis quite literally which is astronomically absurd compared to the real economic gravity of this. also stuart, you made the point earlier about the president's feeling that, we need to get our dollar lower because other currencies are doing it. all we're doing is facilitating a race to the bottom. not everybody can indeed keep going lower and lower without tremendous economic damage. and as the prior guest also said, hurting our own banks and financial institutions. the negative feedback loop, i think the fed has done what they need to do here but the reality is, if they go much further and as you said get to zero interest which i think they will end up going eventually, they left

themselves without bullets for a real sustainable economic downturn. that is something that we should be very cared about. stuart: we have volatility on this market when we got that news literally 53 minutes ago. the news came, the fed cutting interest rates by 50 basis points, okay? at that point the dow went straight up, 500-point turnaround. we have been plus or minus for the last 54 minutes. it is a rapidly moving market. there is real disagreement among people we're talking to whether or not you should jump, wife something, a stock that you love, that is way, way down. do you buy it now. do you wait for it to go lower? the consensus seems to be, jim, don't buy right now. >> not -- stuart: mike murphy is gone but rest of you are saying don't buy right now. >> it is very hard to predict the bottom. all you know immediate news will continue to get negative and

what i would do, every die the market is down triple digits, have your bucket list out, buy a little bit, but leave yourself a lot of ammunition so you can do that for a few months. stuart: george seay, do you think the virus is the bottom line here, the vie us is the key problem? >> no, i have really don't, stuart. i think it is a near-term problem. i think the bilge problem, it was described on the show that joe biden is moderate earlier, he is not. he is a liberal. he is a big liberal. if he or sanders gets the presidency that will be bad for the economy. bloomberg is only moderately liberal candidate the democrats have. who wins the election next year, who controls the senate is bigger factor than virus. virus comes and goes. politics will be bigger. i really do. it will be really bad for the economy if sanders or biden win the presidency. stuart: i agree with that i do agree with that. likelihood of bernie sanders beating donald trump. or likelihood of joe biden beating donald trump i think is slim and none.

look, maybe i'm repeating the mistakes of 2016. trump couldn't possibly bin, laugh him out of court and he won. maybe i'm doing exactly the same thing with bernie sanders and joe biden but i don't think i am. do you really think there is a shot that bernie sanders is the president of the united states? >> i think trump is going to win but when i see earlier, political operatives, career politicians get on and highly overconfident about trump's re-election it really disturbs me because this is a big election. it will have a big impact on the economy. and i think the overconfidence troubles me. it is still a/50 country. trump will probably win and come down to three to five states. that is a thin margin. this is not reagan-mondale, 1984, reagan wins 49 states. stuart: you think market has a lot to do with the market volatility and the downturn? >> i think it has somewhat to do with it. i think it is a bigger threat in the long term.

that is what i'm really saying. stuart: jim awad, politics? >> not yet. there are too many moving parts. you can't really focus. i would agree with you, i think sanders would be a big negative for the economy. biden would be less negative. the question becomes who controls congress. and i can live with bloomberg but right now it's the virus and i think it will cycle into the election once the virus is cured but right now it's the virus. stuart: david bahnsen still with us. you wrote the book on elizabeth warren. almost single-handedly got her out of the race i might add. she is still in it, but fading fast. do you think politics has anything to do with the market today, super tuesday? >> there is sort of a correlation how the market is selling off with the coronavirus, panic last week not related to bernie, then creates the risk that trump's economic calling card is not as strong as we need it to be and then

therefore, you get a knock-on effect, wow, what if you do get bernie or somebody else? there is sort of the connection from the dominos, you know. one sort of begets the other, that is the concern that i think markets have i don't totally agree with the other guest that biden is the same level of risk as bernie. any scenario, a candidate versus trump, who that candidate is not bernie sanders or elizabeth warren is better for markets. on the margin, i'm not a joe biden supporter either but i do think bernie is the retail risk for markets. stuart: go around the block. back to you, george seay, do you see any problem with a bloomberg presidency for the market that is? >> i want to be very clear. i do think biden is much lower risk than sanders but i think underestimating how liberal he is. i think bloomberg would do a great job on economy. i'm against him on some issues but he would be a great steward of the economy. i have no problem with him on economics and markets.

stuart: he couldn't hurt the market? >> i don't think so. i think he would help the market. stuart: david bahnsen, to you now, mike bloomberg presidency, would that hurt the market? >> no, bloomberg would not hurt the market and bloomberg is never ever going to be your president. stuart: you never know. at least in 2016 people said trump would never be president and he is the president. jim awad, mike bloomberg does he trouble you? >> no. i had known him but not recently. fair-minded guy. wouldn't be quite as good for markets as trump but would be good enough. stuart: okay. ashley: good enough. >> in other words, i don't think, [laughter] >> bloomberg would be good enough. stuart: i have to say bernie sanders would be absolute disaster. he had the house and the senate and the oval office.

kiss america good-bye. >> go home. stuart: if the economy fades, there's a problem. bang, 11:00 o'clock. yes, waiting for jay powell, chair of the federal reserve to appear and hold news conference. he will be answering questions. he's just taking the podium right now. i believe we will listen in, here we go. >> good morning, everyone. >> good morning. >> earlier today the federal open market committee announced one-half percentage point reduction in target range for federal funds rate, bringing to 1 and a quarter percent. my colleagues and i took this action to help the u.s. economy keep strong in the face of new risks to the economic outlook. the fundamentals of the u.s.

economy remain strong. the unemployment rate has been near half-century lows for more than a year. face of job gains have been solid and wages have been rising. these strong labor market conditions have underpinned solid household spending which has been the key driver of economic growth over the past year. at the time of our meeting in january prospects for continued economic growth remained favorable and we judged that monetary policy was well positioned to support the outlook. since then, the spread of the coronavirus has brought new challenges and risks. the virus has afflicted many communities around the world and our thoughts and prayers go out to those who have been harmed. the outbreak has also disrupted economic activity in many countries and has promised significant movement in financial markets. the virus and the measures that are being taken to contain it will surely weigh on economic activity both here and the

abroad for some time. we are seeing effects on travel industries and concerns from industries that rely on global supply chain. magnitude and persistence remain highly uncertain and the situation remains a fluid one. against this background, the committee judged that the risks to the u.s. outlook have changed materially. in response we have eased the stance of monetary policy to provide more support to the economy. of course, the ultimate solutions to this challenge will come from others particularly health professionals. we can and do our part, however, to keep the u.s. economy strong as we meet the challenge. as always, our actions are guided by our congressional mandate to promote maximum employment and price stability. in the weeks or months ago we will closely monitor developments and implications for economic outlook and use

tools and act as appropriate to support the economy. thank you and i will be happy to take a few questions. >> thank you, nick, wall street journal. two questions, first, what changed between last week when many of your colleagues seemed to indicate it was still too soon to tell how this might influence the outlook, what changed between last week and today? and then how much confidence do you have that there will be a quick and relatively complete recovery of economic activity after the peak of this virus has passed? >> what changed? of course, we have been carefully monitoring the situation since it first became known and wait to go see how it would evolve, we come to you now that it's time for us to act in support of the economy and once you reached the decision we decided to go ahead and so what

changed really was i would say over the course of the last couple of weeks. we've seen a broader spread of the virus. we seen it begin to spread a bit here in the united states, but for us what really matters, of course, is not the epidemiology but the risk to the economy. so we saw a risk to the outlook for the economy and chose to act. in terms of my confidence that we will -- what was your question? >> how do you expect this to -- the economy to recover from this? do you see it as a persistent decline in activity or something that would be relatively temporary or short-lived? >> i don't think anybody knows how long it would be. i know the u.s. economy is strong and we would get to the other side of this and i fully expect it would return to solid growth and solid labor market as well. >> you said that the ultimate solutions will come from others and i have two questions about

that. first, is this a coordinateed, part of coordinated action of central banks and should we be expect to go see more as part of that and, second, what would you like to see from american fiscal policymakers in regards to new threats? >> okay, first question, we are in active discussions with central banks on an ongoing basis as yogees. i've been in regular contact with central bank leaders around the world. that will continue. central banks are doing what makes sense in particular institutional context but we are talking to each other on an ongoing basis and our action represent what is we think is the right policy for us in our particular context. you saw this morning g7 statement of finance ministers and governors and i think the statement does reflect coordination at high level in form of commitment to use all available tools including healthcare policy, fiscal policy

and monetary policy as appropriate. so in terms of fiscal policy, not our role. not our role to give advice to fiscal policymakers but you saw it mentioned in g7 statement as appropriate as well. [inaudible] >> i'm sorry? >> sorry. heather scott with fap. the g7 statement seems to indicate that policymakers would use tools but were not doing to do anything imminent. does this contradict that or in keeping with the action -- the statement by the g7 this morning and can i ask what would cause you to make -- take another steps? what would you be looking for in terms of economic outlook or

data? >> the sense of the g7, you know, is to. we have 70 countries obviously and different -- different policies and different situations, different mandates and a lot of overlap and these are the things that we will use. we will use our tools, all of our tools in a strong way to try to support the economy. that's general support. i think within that, you will see actions. you've seen our action and i think it's up to individual countries, individual fiscal policies and individual central banks to do what they're going to do. i would think it would be -- it's possible there will be more formal coordination as we move forward. in terms of -- in terms of moving forward, i would say that we do like our current policy stance and we think it's

appropriate to support mandate goals but as i said in my statement, we are prepared to use our tools and act appropriately depending on the flu of -- flow of events. it's always a range of things. >> heather long from the washington post. there's been some rising concern about credit markets and possible insolvents and are we likely to see emergency provisions from the cra activated or things that you normally do, you know, during a hurricane or that type of disruption to the economy? >> so we don't see any of that happening yet. of course, we are thinking about what we can do should those thing happen. there's no evidence. the economy continues to perform well so i mentioned we do hear concerns particularly from those

most directly exposed but nothing in that nature, financial markets are functioning in an orderly manner and that sort of thing. i think when it comes to those sorts of issues, though, we will be, the supervisors will be working with banks to assure that they work with their borrowers and that sort of thing and i can imagine us doing these sorts of things. but those things are not upon us at such a moment. >> thank you, brandon greeley, financial times. have they discussed rate cuts and when appropriate? >> we are in the middle of review of all of our tools and we talked about what our tool kit is and we put in minutes. in the current context what we discussed policy, is it appropriate, came to the view that it was appropriate to make a change and went ahead and did that today?

>> rich miller with bloomberg. thank you very much for having press conference. can you take us through reasoning and depth. some columnist says this was rate cuts are not particular suitable for this and others say due to man shock? i wonder if you can give us more depth in the reasoning behind the rate cut. thank you. >> sure, i would be glad to. the virus outbreak is manager that would require multifaceted response and the first will come healthcare professionals and health policy experts. it will also come from fiscal authorities should they determine their response is appropriate. and what could become from many public and private sector actors, businesses, schools, there's also a rule for monetary policy. monetary policy can be effective tool to support overall

activity. we do recognize that a rate cut won't fix broken supply chain. we are specifically it will support accommodative conditions and can weigh on activity. it will help boost household and business confidence. that's why you're seeing central banks around the world responding as they see appropriate either particular institution context. >> thanks, elon, cnbc. can you tell us what you would do if the virus ends up being contained fairly quickly? would you envision the ted fed raise rates and if the economic damage occur that you potentially fear and i have a second question which is president trump was just tweeting about you this morning and talking about the fed's need to cut rates, did you feel any

political pressure to make this move? >> on your first question, we are always going to set monetary policy at a given time in a way best serves, simple as that. if we get to a place where we think it's an appropriate time to change monetary policy we won't hesitate to do that. i would also say that it's -- it's very important that people understand that we will always make our decisions based on the best thinking we have, based on what we learned from outreach to businesses, nonprofits, educational institutions that we get every cycle through the reserve banks and best analysis is best research. we are never going to consider any political considerations whatsoever.

we will not do that and it's very important that the public understand that. >> last question. >> chris, associated press. i know you mentioned a little bit of outreach. some of the fed presidents were talking about how they would listen to con tanks, have heardm con tanks, what are you hearing from those folks? >> you are hearing concerns for example, for people in travel business, the hotel business and things like that. that's what you're hearing. you don't see things showing up in actual data. you do see them showing up in sentiment forecasts and we expect that to continue and probably grow and that's one to

have reasons why we would to the view that it's appropriate to support the economy and that's what we've done. >> okay. thank you. >> thanks very much. stuart: chairman powell just opened -- sorry, closed his press conference, he was there for about 15 minutes. it did affect the market. actually the market as in the dow industrials went straight down right after he start today -- started to talk. we are now down 300 points. in brief, the virus weighing on the economic activity worldwide and highly uncertain of the precise effects. the outlook had changed. that's why they cut today. the ease to provide broader support. he was asked, when do we recover, don't really know that but expects to return to solid growth on the american economy but gave no time frame for that. he said measures will boost confidence and they will provide meaningful boost to our economy.

in a nutshell, that's what he said, we are down 323 points. jim has been listening to this, market watcher with me. why is the market down 300 points when the fed chair says, i'm moving to support the economy? >> because he's basically saying he doesn't know how bad it's going to get and it's an evolving situation that he's uncertain as the rest of us and that people are very happy that he did what he did. there's no visibility at this point. i think he gave a very balanced statement, very -- i think he's really trying hard to thread the needle. i think he did what he could under the circumstances and i'd actually give that press conference an a. unfortunately he just doesn't know what the future has in store, the short-term future. he said long term we will be okay and he's right. stuart: no time frame. >> right. stuart: you're certainly not in a position to say it. >> right. stuart: look, the recovery, don't know when it's going to happen but long-term will return to growth. lauren simonetti.

lauren: what is he going to say on march 18th on the next meeting and the fed go all the way to zero, do we go to negative and is that the right lever to pull in a situation like this? you can cut interest rates all you want and that doesn't get someone on a flight to italy? stuart: he did seem to imply that more action is coming. he's i'm -- implying that that will happen. >> not good. stuart: no, it's not good. >> you still have reasonable credit spread. you don't have to have whole trading and it's down. it's down consistent downward pressure but orderly. lauren: in 2008 when the fed was responding, there was panic out there. it was a different type of panic. stuart: i remember it well,

mid-september, 2008, awful times, flatout panic, this is not a financial crisis. a slow-moving problem. that's what we've got. >> he mentioned that 50 basis point cut is to help avoid a tightening of financial conditions which is 2008 was and i think it's important to note as well that powell was asked about political pressure and he says that it's very important for people to understand that they are without political considerations. stuart: okay, on the phone is herman cane, perhaps our viewers do not know herman but you worked at the federal reserve. you w i -- you were i think federal chairman? >> in kansas federal. stuart: what do you make of it? >> i believe it's what i would call an economic buffer.

this economic buffer is causing volatility that you're seeing in the market along with the other uncertainties like the coronavirus. an economic buffer of cutting 50 basis points cfo's, thousands of people will take as an opportunity to borrow money and go out and buy. the fact that the marks has come down cfo's are looking for deals, if they can get cheaper money to go out and buy that's causing volatility. not everyone is doing that. but i happen to believe that that's what's happening. stuart: and i think he also pointed out how bad this is going to be. he said highly uncertain of the evennual -- eventual effect.

right now we don't know how bad it's going to be, right, herman? >> i think he's absolutely right. we don't know how bad it's going to be, but when the fed cuts rates by that 50 basis points, we want the market, we want businesses to still have confidence and try to the best of their ability to continue with business as usual. it won't be totally as usual but i call it economic buffer that's helping a lot of businesses rethink how they are investing their dollars, how much stock they are going buy back, how much they want to borrow and i think it was a good move on the part of the fed to do what it could do in order to try and ease some of the fierce that are associated with the unknown called coronavirus. stuart: well, we were listening very closely to every word jay powell came up with there and my impression is there's more to come. more rate cuts to come. maybe easing, pumping money into

the economy, more rate cuts from other central banks around the world. so this is just an opening but there's more to come. do you read it like that? >> i read it like this, if they do not get some sort of vaccine for the coronavirus sooner rather than later. if the testing kits cannot be distributed expeditiously, those are two big if's, they are positioned that if, in fact, health officials move slower than we anticipate, then they are prepared to do more, but they may be waiting to see how fast we will get some results from some of the healthcare providers and pharmaceutical companies but still too many unknowns, but, yes, they are poised to do more if they have to. stuart: okay, herman, turn aray from interest rates for a moment and look at the market, do you

think that late last friday after the horrendous week, 3,500 points, was that the bottom? >> i don't know, but looked like the bottom and the volatility that you're seeing today suggest that that may have been the bottom. i don't think anyone can predict precisely what the bottom looks like and i look at the vol illty that we are seeing today as an indication that we may be in the near bottom but you are going to have some volatility, why, because there's too many unknowns. stuart: herman, thank you very much for joining us. i didn't know that you held the position at the kansas city fed but we are impressed by it. >> what you're saying i must be smarter than i look. that's okay. stuart: i didn't say that actually, herman, i would never say such a thing. >> enjoy it, stuart. stuart: thank you for being with us, man. the low of the day.

we are now down 381 points even though jay powell said that 50 basis point cut will provide meaningful boost to the economy from -- >> ashley: straight back down to 105. gold is now up $40. stuart: 40 bucks. ashley: $40 at 1636 and the u.s. dollar expect down against all u.s. currencies. stuart: interesting. what do you have, susan. >> you talk about coordinated action, you heard from jay powell as well. during press conference there's a 90% probability that ecb will go further in negative territory. right now we have negative interest rates of half percent. it looks like it's 90% volatility and cut another 10 basis points next week. powell did what he did. canada will cut interest rates

by 25 basis points and the bank of england. he will just say everyone else is doing this and as president trump is saying, we are doing the same. stuart: right again, susan, it's a catch-up system. for the benefit of the viewers who don't know much about negative interest rates. it came to us real shock to all of us it started in europe and spread to japan. when you borrow money from, you know, the government, for example, wait a minute -- okay. i'm lending money to the government. i'm the lender. i'm giving the german $100, i don't get it all back. i don't get interest. in fact, i only get $95 back. ashley: you pay them for the privilege of lending you money. the other way around. stuart: what do -- >> ashley: operating in reverse. stuart: i'm loaning to the government and they don't give

it back to me. they take a piece. >> which is unusual. >> so there are sovereign funds and pension funds that are mandated that a certain amount of your money has to be with the government and therefore you are forced to give the german central bank your cash and not get 100% of it back unfortunately that is the reality and unusual reality that we live in today. stuart: let's bring on board a big hitter, david kelly with jpmorgan joining us on the phone. i've got allow of the day right now, david, minus 450 points, what do you make of what's going on here? >> well, i think the problem, of course, is when the fed cuts rates aggressively as they did today that can send mix signals. and i think that's part of the problem. i think the other part of the problem is that this is monetary medicine of limited effectiveness. i mean, it can -- ultimately i

think it can effect the stock market and lead to lower dollar but the real problem is in service sector. are you beginning to take an airline flight. are you going to go to restaurant and none of these are sensitive decisions. stuart: indeed, david, as chairman powell did say, the virus weighing on economic activity worldwide and it's highly uncertain of the effects. he's suggesting i think that the worst is still to come as he will have to deal with it in coordination now with central banks. do i have that right, david? >> yes, also in terms of fiscal policy. if the people are getting hit by this are in the service sector, cruise industry, are things government can do to help the companies weather this because we don't know how deep this will be but we know how long this will be. this is not a multiyear event.

it might be as long as a year before we have effective medical response. won't last years and years, so what we need to do is help companies get through a rough 2020 and i think most of that can be done in fiscal side through various, you know, incentive ways of helping companies through this. but that's all we need more monetary easing here. stuart: that's fascinating. david, thank you very much for joining us and raising a very important point. fiscal, you know, changes in your tax, for example, that is just as important for boosting this economy. by the way, new low of the day, we are down 576 points. i should briefly tell you that on the right-hand side of the screen. that's a podium. the president is about to go to that podium and address his audience. i have no doubt that he will be saying something about the fed's rate cut, something about the virus and maybe even the stock market's reaction to what we've just seen, susan. >> 10-year treasury year slightly above record low.

they are going all the way down to 103.9. a touch above of all-time low that was set yesterday at 1.03. stuart: my goodness. >> 5 basis points in the matter of hours, basically. stuart: that's flight to safe haven. flight to safety of the united states treasury security. it means money flowing into those bonds, driving up the price, lowering the yield to very close to an all-time record low. 103.9. that is extraordinary. did i get that right? >> yeah. 103.9. stuart: emac, what do you think of this? >> the last time we saw sizable cut was would be after lehman brothers collapsed. so we have only seen this happen

5 times when the federal reserve has moved to act in between meet to go cut rates. that's the point. they did it in 1994 and we saw it inner 01, '08. the size is pretty dramatic. stuart: okay. i was intrigued to see a chairman powell, he started out by saying, look the virus weighs on economic activity worldwide. i keep repeating this. highly uncertain of its effects, but, look, cutting rates will provide meaningful boost to the economy and we are down 500 points. the president is just walking on to the stage. they are playing music. we will not take you just yet and wait till he takes podium and start to speak. he's appearing with extraordinary backdrop, sharp rate cut which he wanted and called for. i believe he wants a great deal more than that. he called for it and he got it.

we have a market reaction which show it is dow down 164 points. so that's the president. he's about to speak. i'm sure he will address the virus, the rate cuts and the election. >> what a nice group and thank you, marianne. i said who is out there that they like so much and it was marianne. please sit down, please. before i begin i want to send my warm wishes to the people of tennessee in the wake of horrible, very vicious tornado that killed at least 19 people and injured many more. we are working with the leaders in tennessee including their great governor bill lee to make sure that everything is done properly. fema is already on the ground and it's vicious thing, those tornadoes, i've seen many of them during a 3-year period and i've gotten to see the results

and they are vicious. if you're in their path, bad things happen. really bad things happen. i went to alabama 9 months ago and i saw the devastation that that left in alabama too and everybody was so incredible, the people were so incredible, but so many people get killed if you're in the path and we will be going as i said to tennessee on friday. we send our love and our prayers of the nation to every family that was affected and we will get there and we will recover and we will rebuild and we will help them and condolences, tough, tough situation. such bad news when you see that. i'm honored to be here with the national association of counties at your annual legislative conference. it's a great group of people. aye -- i've dealt with you over the years and every once in a

while i find one that i don't like but generally speaking you're all good. [laughter] [cheers and applause] >> and when one of you are in the way, it's very tough to get that job done. [laughter] >> when you've helpful it's real easy and we get it done and we produce a lot of jobs and good results and i want to say you're very important and people that are doing what i do before i got here, we realize how important you are. incredible job, really, some of the most incredible people doing exactly what you do. thank you very much. [cheers and applause] >> so in this room over 1,200 counties leaders whose leadership profoundly improve the lives of millions of americans each and every day. i want you to know that my administration will always be your friend and partner and ally and resource as you work to deliver amazing future for your counties and for your communities and for the country

itself. as i said in my state of the union address 3 years ago -- i've had a number of state of the unions already, can you believe it? this was 3 years ago we launched the great american comeback and we really did, we launched it with a certain splash that no one had seen in a long time and what we have done has been incredible. our country is so strong. we built the military, we cut taxes, we cut regulations. you know, regulations. [cheers and applause] >> you know the regulation business. i think you know the regulation business better than any group i can think of. sadly 5% of you are saying, gee, i wish they wouldn't have cut but 95% of you were saying it was redundant and a problem and i talked about highways that it would take to get approve, 18,

19 years. i would give you many examples. not even big highways but roadways. we cut regulations at a level that nobody thought possible and we have done it with the extraordinary help of local officials, people like yourselves that worked with us and worked with department of transportation and all of the other departments that we worked with. we have got it down where it would take 20, 21 years to get approval of highways. i think we have it down to 2. i want to get it down 1 meaning that it can get rejected. we have safety concerns that we have to look at, we have environmental concerns, many concerns that we have to look at. but go 20 years and get a rejection. how many of those where you wait 10 years and then at the end of 10 years they vote and they reject you? okay. there's been a couple. i guaranty there's some people in the room. i've been involved in a couple of them. [laughter] >> that's not fun. you devote a big chunk of your

life to something and you lose 3 to 2. did you go home, how did you do, darling, not good. a lot of power in this room. you don't know the power that you have. yes, you do. we hosted nearly 50 white house events welcoming over 3,000 county leaders from all 50 states to forge powerful bonds and cooperation. [cheers and applause] >> as we speak, my administration is working very closely with state and local leaders who confront the coronavirus. we are really working hard on it. vice president mike pence is leading the white house coronavirus task force and doing a fantastic job too. [cheers and applause] >> we have already met with state county and health officials in 30 states and conducted regular briefings with governors to coordinate a a response and contain disease and shows you what can happen.

6 weeks ago, 8 weeks ago you never heard of this and all of a sudden it has the world a flutter. things happen that you never would even think would happen and then you have to confront it and you have to do a lot of good work and you take care of the situation, you people do that better than anybody that i can think of. america has the world's most advanced public health system. we know that our county health officials play a frontline role in battling public health threats and we are working with congress very closely to pass supplemental legislation that ensures state and county health departments get everything they need. i ask for two and a half billion. it looks like they will give us 8 and a half billion. i don't think that's ever happened to me before.

[cheers and applause] >> i think i should say i take it. i asked for 2 and a half and they give me 8 and i say, i take it. no, everyone is working together very well to prevent the uncontrolled spread of the disease. i ordered sweeping travel restrictions and did them very early as you probably have heard, earlier than people wanted me to do them and turned out to be a wise decision. [cheers and applause] >> we imposed historic quarantines. we urge you to share information about safety practices with your communities back home. cdc has all of the information, it's listed all over and it's good thing to refer to, but that's why following my remarks today you'll hear from dr. robert redfield, the director of the center for disease control and prevention and they are doing a fantastic job. they are working around the clock.

america has the world's greatest professionals working and they are working very hard and move aggressively to accelerate the process of developing a vaccine. i met yesterday with the biggest drug companies, fisa and johnson & johnson and many of the other companies and a lot of good things are companies and they are happening very fast. i said do me a favor, speed it up, speed it up. and they will, they are working really hard and quick. we are moving at a maximum speed to develop the therapies, not only the vaccines but the therapies, therapies is sort of another word for cure where you have it. it helps get the people better faster and take down the severity of the illness. they've done so much. you look at what happened with aids and the tremendous job they've done. we would be as an example within 9 years, nobody would have thought that was possible.

best possible position to deal with the challenge and our economy is prospering like never before. we've relocated supply chain. a lot of the chains are back in the united states and we've also as you probably have noticed for 2 years i've been complaining about the medicines are made outside of the united states. i want them to be back here. if there's a reason why we can't use a certain country for lots of reasons, i want it to be made here and we've already started that process before this happened. [cheers and applause] >> but this sort of explains why we have to do it. jobs soared in the united states at a level unprecedented, historic and we've had historic new investment in the country. no country on earth has had greater power to overcome adversity, what we've done in so many different ways, we've rebuilt our military, 2 and a half trillion dollars. it's wonderful to have a good

budget but if we don't have a strong military -- [cheers and applause] >> you never want to explain we had a good budget while people are running, no, thank you. you should have spent more money on the military, i guess. when i took over our military was totally depleted. it was an embarrassment and we've totally rebuilt our military, most of the equipment, most of it is already there. new planes and new missiles rockets, new everything, we make the greatest military equipment in the world all made in the usa. all made in the usa. [cheers and applause] >> all made in the usa. every bit is made here. rebuilding our navy. we are rebuilding our navy and we are doing a job and frankly 2

and a half trillion dollars is a lot but not a lot of when you think of importance of military. they say the most important thing that a president is the court system and in particular supreme court judges. i've named 218 federal judges, can you believe that? that's a record. that's a record. [cheers and applause] >> only one person beat me percentage wise, you know who that is, right? does anybody know? percentage wise there's only? and when you look 218 because president obama was very nice, he left 142 to start off with. usually left none. i had 142, but you know who the 1 percentage was george washington. he had 100%. but it was like 12 people. [laughter] >> 12. at least i can say i named more than him. a lot more. little smaller country at the time, but he had 100%. in our great national renewal my

administration has made engagement with local leaders a top priority because nobody understands the needs of local communities better than local officials, the people in this room. [cheers and applause] >> nobody. with your help and we keep in touch with you all of the time. we feel strongly about that. our economy is right now the envy of the world. we have created -- and by the way, did you notice the market went up almost 1300 points? that's the highest, biggest -- that's the biggest one-day gain in points in the history of our country. can you believe that one? that was a nice surprise. took half of the hurt from the previous week out caused by something again that we didn't think would happen, so that was tremendous and today it's up and the federal reserve cut rates today finally, finally. [cheers and applause] >> do it more, do a little bit

more. you want to be competitive with the other countries. other countries have lower rates because their feds, their currencies are cut to a level and their rate is cut. they play with their currency and play with the value of their currencies and we don't do that. we don't do that. we have a different kind of a theory going and it really puts us at -- and i don't say necessarily to do it but we have to be competitive with other countries. when we are paying 2 points more than germany, we are paying more than other countries. we should be paying less than everybody else. we have the dollar, we have the strength, we have the greatest country on earth. we should be paying less, so the fed rate is too high. it's very simple. it's too high. it puts us at a competitive disadvantage especially when it comes to exporting our product on other countries. the other countries love that. i don't like it at all. [cheers and applause] >> i'd like to see our fed lead

instead of being led. we have created 7 million more jobs since the election and if you would have said 7 million jobs, nobody would have believed that number. [cheers and applause] >> the optimistic projection by the previous administration was 2 million jobs, that it would be 2 million by this time and turned out to be now over 7 million jobs, so that's something really incredible. african american, hispanic american, asian american unemployment has reached the lowers level. you know that. median household income has hit the highest level ever recorded. if you look back and you go to president bush's it's $450. you go to president obama, that's for 8 years, remember, if you go to president obama for 8 years $975. stuart: forgive me coming out of

the president's mention but we heard what he has to say about the federal reserve which is the federal reserve that has made the most important financial decision with the day with the most financial impact. at 10:00 o'clock eastern time this morning the fed announced rather briefly, quickly that they were cutting 50 basis points off interest rates. a rather dramatic mid-meeting cut. that was followed by a sharp decline in the stock market and we are now down 380 points. president trump just addressed the rate cut issue and here is what he had to say. he says cut rates and do more, the federal reserve should lead, not be led. so the president wants more rate cuts and i'm sure he wants more easing that will be putting money into the economy as -- as some of the central banks around the world are going to do. the result right now is dare i say a stability for the dow still down about 300 points. but remember, please, that

follows a rate cut and follows a great whopping rally yesterday for the dow up over nearly 1300 points. that's the market, that's money. let me turn now to politics. a favorite subject of mine, of course. it is super tuesday. yes, it is. they'll be primaries in 14 states including california and texas where we confidently expect bernie sanders to win. that will leave -- that would leave joe biden and mr. bloomberg as the so-called moderates in the field going up against bernie sanders a 3-way split for the democrat and look who just happened to walk in the studio. doug sean, a bloomberg pollster. you're being paid by mr. bloomberg, a handsome salary if i'm not mistaken. >> stuart, i work very hard and mr. bloomberg is a very successful businessman. stuart: god bless american. i think you got $7 million.

>> i don't remember what the numbers are. stuart: you don't know -- >> i'm focused on the poll numbers which are changing rapidly as joe biden consolidates support based on mayor pete and amy klobuchar's support. stuart: is that at the expense of your guy -- >> no, it is not. two things. a couple of polls, public polls, not my polls showing that the mayor is doing somewhat better in a number of southern mid western states, so i think the major has carved out own constituency and we really don't know where things will turn out. there's also a fourth candidate, stuart, to enter the mix, elizabeth warren who is presumably drawing from bernie sanders. so this is still a very confused situation where the biden factor has not yet been fully felt. stuart: i'm sorry, pete buttigieg, he's out. amy klobuchar is out. >> absolutely. stuart: tom steyer, obvious

attempt to consolidate moderates on joe biden. will mr. bloomberg get out of the race? >> no sense that he is going to get out of the race. he said and he's been clear he's going the stay in and if he continues to poll as well as the public polls are now showing, i think there's a very good chance that he will stay in -- >> stuart: democrats must be begging him to get out so they can consolidate support on joe biden, they use to discount him and now they love him. >> look at it this way, mayor bloomberg got on his own, self-financing and makes his own decisions, he's not beholding to the democratic party. he will do what is in his interest and so far his interest is to go forward vigorously as a candidate. stuart: what do you have, lauren? lauren: there's a couple in florida. he said $620 million so far, what about after tonight?

>> he has some advertising. he was in florida yesterday. logically if you're a rational man, you look to see the results tonight and you act accordingly but he can move very quickly and he has moved very quickly. stuart: i think he said at the town hall yesterday i think he said if he does badly today in super tuesday, even if he does badly he's staying in. >> well, that's what i've been trying to say which is he made his own decision to get in. he's not subject to pressure by democrats and if as i think he does better because of the withdrawals of major pete and amy and tom steyer, i think that would be strengthen and not weaken. stuart: heist the spoiler, wildly unpopular. >> you know, he's not wildly unpopular. he's getting close to 20% of the vote. stuart: they are calling him the ross perot of 2020.

>> at this time ross perot was ahead 40 and 50 states. ross perot pulled out and got back in and got close to 20%. stuart: he did. >> i don't think necessarily that mayor bloomberg by any means is facing any pressure to make any decision other than to go forward. stuart: what's his demeanor? how is he feeling? >> the great thing about mike bloomberg is he's a rational thoughtful man, makes decisions based on the merits and i find it a great pleasure and honored to work with a logical rational man who is doing this for the right reasons. stuart: all right, doug, hold on a second. i have questions for a man like you. hold on. >> sure. stuart: let's head to california, michelle steel joins us from orange county, orange county supervisor and congressional candidate, michelle, welcome back to the program. great to see you again.

>> thank you for having me today. i know that you're a republican, but is bernie sanders going to win california today because he's been attracting huge crowds >> you know, i really don't know we have ballot harvesting and others. my name is on the ballot so i don't really care about other candidates right now. i'm thinking about myself at this point. stuart: what is ballot harvesting, what's that? >> you know what, they collect all the ballots and it's legal. so you can just go there and like senior citizens apartments and they collect all the ballots and you turn it in. it never happened. in orange county especially for republicans it's very hard to do, but now a lot of churches are mobilizing and they are trying to do that. stuart: the democrats are doing that, 2 million people have already voted in california. >> well, that's the way -- they

won in 2018. stuart: the last time you were on the show you were fighting a quarantine site in your area because you didn't want the people who are connected to the area. did your appearance on the show keep them out? >> yes, your show helped, but not only that, most governors that they try to protect their residents, but you know california governor newsom they tried to transport people 400 miles to densely-populated area. that doesn't make any sense at all. you know what, it's been stopped so i'm very happy about that. stuart: who is your opponent in the election in november? >> harley ruda, he won in 2018 against congressman dana.

stuart: what do you think are your chances? republicans have a very hard time in california. in my lifetime i really don't expect a republican to win a statewide race in california. >> you know what, we lost 7 republican seats in california and this is the most republican seats. we have 7 republican seats and you know what, we have been raising money. i got a lot of support and i got support from, you know, endorsement from kevin mccarthy and newt gingrich and tall republican congressmen in california and other areas too and i raised about $1.75 million so far, yes, we will take it back because, you know, we really have to. stuart: in california, i would agree with you. michelle, thank you very much for joining us, i'm glad that you're on the show. we will see you again real soon. thank you very much, indeed. >> thank you. stuart: let me keep you up to speed with the market. we are now down 300 points. rate cut at 10:00 o'clock this morning.

50 basis point rate cut by the federal reserve. mr. powell held a news conference which he said he expected that this rate cut would give a meaningful boost to the economy but the dow is still down 300 points. on that note, meaningful boost to the economy i i want to bring in matt shay, national retail federation. matt, you told news the past, your forecast was that this calendar year 2020, retail sales would go up a very strong 3 and a half to 4%. you made that forecast before the full impact of the virus was felt. are you sticking to it or are you cutting back on your forecast for retail sales? >> well, stuart, we did make that forecast that we would see strong continued growth this year, 3.5 to 4% last year. last year we did 3.7%. the holiday was 4.1. a lot of momentum in the economy and so some things are changing, of course, due to the virus. there's a lot of uncertainty about it out there, but i think

a lot of this is, you know, a lot of hyperbolic speculation about what might happen and we don't know yet. we had a call just on friday afternoon. we've been convening retail industry leaders on this, multiple conversations about this. we had dr. nancy messameir and behaving in a responsible way, but at this point it's too early to make those kinds of calls about what might or might not happen. for the moment the underlying fundamentals are strong, none of the factors that were present in the last recession we had are present now, so we ought to assume that we are in a good place. consumers are resilient and led us through disasters and we should believe that it would

happen again. stuart: i want to make one point. the severity of this virus and its impact on our economy will be felt if people no longer wish to go out in crowds, in groups, travel on planes, go to the super market and go to the malls, that's your biggest problem, isn't it? the separating out of people in the face of the virus. of course, you don't know how bad it's going to be but that is your problem. >> yeah, i think, listen, it's going to be a problem for the economy if we go to mass closings. it would be felt in lots of sector of the economy, a numberf ways retailers can stay engaged through deliveries and people engaged in food stuff. things they will have to have. i think it's very really to -- early to be speculating, and,

stuart, i would add that by the end to have week if there's a million test kits as prediction cdc changed regimen. the incidents are lower relative to bigger group that would go a long way to easing uncertainty and we should be looking forward that kind of outcome. stuart: matt shay, elizabeth warren listening to -- elizabeth mcdonald, you're listening, what do you say? >> this is about now confidence that they're tackling the problem. a million test kits the fda says after cdc has been criticized for botching the testing. when you have tens of thousands tested in south korea and millions tested in china but we are not up to speed at that level yet, that is what the fiscal response should be. put the money toward testing. the federal reserve has acted.

i know the criticism that fed rate cut won't restart factories or create vaccine, but to have a rate cut and then have money to spend on cdc and fda testing in the hot zones in the states in the u.s. where the cases would be, that wasn't another boost of confidence. stuart: got it. you have evening edit tonight. >> that's right, 6:00 p.m., we will be tracking super tuesday and likelihood we still may not have clarity after today. stuart: we shall see. real fast, do i have a question to ask question to doug sean? >> yes, i do. mr. bloomberg just said that he's banking on getting a big chunk of delegates only gets delegates if he surpasses 15% of the vote in any given state. >> sure. >> what happens if he doesn't get 15%? sure he would look getting out if he doesn't get the delegates? >> stuart, all polling i'm

seeing he is moving up towards, 17, 18, 19%. a number of polls have him in the lead in couple of states so i don't think that is going to happen. i think likely he improves his standing. stuart: why is, this is lauren's points why has he not bought tv ads, he spent hundreds of millions of dollars, he has not bought any ads after super tuesday. >> he has bought some. he is financing, he can do it instantaneously. not really an indicator of anything. he can reach in and wire money and be on the air instantaneously. stuart: i'm not laughing. i am simply saying i never seen a candidate with couple billion dollars to chuck in the pot and neither have you. >> this is a unique situation. stuart: isn't great guy to work for? >> i worked for him 25 years. we have a very good relationship. i am very proud i worked on all three mayoral elections that

were successful. stuart: good luck to you. >> thank you, stuart. stuart: i mean that seriously. you're a decent guy. >> thank you. you're okay yourself. stuart: all right, look, today is super tuesday march the 3rd. primaries going on in 14 states, all important california and texas. we'll have coverage on this network tonight. neil, coast to coast. super tuesday, coverage, starts at 8:00 tonight. it is a special. by the way, by 8:00 tonight, you're going to start seeing results pouring in. you might get early results at 7:00. by 8:00, we should have a more clear picture of how this thing is shaking out. ashley: or not. stuart: or not. very true. >> 538 the polling group, 67% no results. we may not have any clarity after tonight. stuart: my bet is bernie wins california, bernie westerns texas. he does well in colorado,

massachusetts, maine and minnesota. that will not put him over the top in terms of delegates. the bloomberg factor may come in at that point because if we get to a contested convention, bloomberg can buy the delegates he needs. neil, it is yours. neil: stuart, thank you very much. we'll watch that very closely. mean while we're watching what is happening on the corner of wall and broad, some wild swings. the federal reserve has cut interest rates between meetings, the first time it has done that since the financial crisis. that seems on wall street chewing on possibility what do they see that we don't see? no benefit from the cut thus far. the look at 10-year. this is all-time low. we're not far from dipping below 1%. blake burman keeping close eye on the white house and president responding to all the fast moving developments with the dow down 280 points as we speak. hey there, blake.