will see a major haircut because again -- charles: i think you're right. i think you're right. >> to me, it's -- charles: have to leave it there. got to leave it there, friend. >> thank you. charles: all right. at the session lows as i hand it over to liz claman. no c.p. effect today, liz. liz: you ruined it for me. listen, it's a tough day, charles. we are looking at circuit breakers. i know you have been, too. breaking news, rough is an understatement. we have a pretty stunning display of fear sinking its teeth into the recent market runup and wringing a big chunk out of it. we are tracking a major selloff in airlines, cruise lines, energy companies, pretty broad-based. we will explain the triggers that caused the tumble today that is burning 1,737 points off the dow right now. nasdaq down 491. nasdaq 10,000 which we hit yesterday and closed at, it's

vaporized. we are at 9529 for that. the selloff comes as president trump is minutes away from arriving in dallas, texas. now, once he lands, he's going to head to a 4:00 p.m. roundtable with faith leaders and police to discuss issues from racial inequality to police brutality. the dallas mavericks basketball team just held their own discussions with local police and current and former nba stars, including shawn marion. how has the nba team managed to strike the right tone? the ceo of mark cuban's team is here to tell you. she's here in a fox business exclusive on making the business of basketball both diverse and inclusive and of course we will ask her about the upcoming restart of the nba season next month. if you have to pick the underpin of all innovation today, you would have to say it's a teeny tiny square of

silicon with transistors on it. no wonder team trump is looking to lure foreign microchip companies away from china into the united states. the state department's point man is here. what's the cost of convincing a company like taiwan semiconductors to turn its back on china business and look forward to the u.s.? we will ask. even the stay-at-home stocks are suffering right now. we will show you the one that's charging higher and charlie breaks it on new troubles in dish's deal for boost mobile. less than an hour to the closing bell. stay with us, it's a rough day. let's start "the claman countdown." liz: breaking news. we need you to look at the s&p 500. the percentage of the drop for it is right now. what we are looking at is we are getting very close to circuit breaker territory. now, right now, the s&p is down

5.5% but it's getting closer and closer to the important level of 7% losses. if it goes down 7% before 3:25 p.m., it will trigger a 15-minute trading halt. now, all bets are off if it happens at or after 3:25 p.m. if that happens, we are going to keep trading unless the s&p 500 falls 20%. so the 7% level, that would be a drop of 223 points. we are not there yet. the 20% drop would be a drop of 636. right now, we are down 169. we've got some breathing room here. we are watching it very closely. mobile game developer, breaking news here, just announcing it's going to create multi-player titles exclusively for snap's gaming platform, snap games. both stocks are down, probably getting swept up in the downdraft here. snap is down about 6.5%. zynga down 2.5%. the first title under this new

collaboration is a mini bumper car game called bumped out and it's already available to play right now. we are watching that news, even on a day like this. a deal that would be probably really positive, certainly for zynga is pulling it down about 2%. we already talked about circuit breakers. let's go forward to talk about at least one name that has managed to hold on to most of the gains. if we can forward to regeneron, of course it's been one of those really important companies that matters very much when it comes to the coronavirus issue. you can see that most of the day, regeneron was able to hold on to this gain but you can see that it is pulled down and under water at the moment, down about $9.52 or 1.5%. earlier it was a 52-week high after it announced human trials of its potential covid-19 treatment. the biotech company expects to go into the second phase of testing in just the next couple of weeks. things are moving pretty quickly here. all right. a treatment cannot come fast enough for any travel stocks.

the dow transports, this is the index chock full of airline and trucking stocks, has nose-dived into correction territory. now it's down 11.5%. correction, 10% lower off the recent highs. we are there and more. travel related names are unravelling on dire economic outlook from the federal reserve, which it outlined yesterday. but look at the hit the airlines are taking. when you look at american airlines which at this moment is down about call it 15%, american airlines just a week ago was a $22 stock. it's now $14.47. southwest, this monday it was $40. southwest right now is at $33.01. delta and jetblue are also getting smacked here. united airlines down 15%. it's a really tough day for delta, down 13%. if you felt like you missed that entry point, 14%, 15% cheaper right now. let's get to cruise stocks, under water as well.

carnival, norwegian, royal caribbean. look, carnival at the moment is down 14.5% or $17.59. but remember, carnival's low was on april 2nd, $7. again, perspective here, right? let me flip it over to hotels. marriott, hyatt, hilton. no surprise you would start to see some vaporization here. yeah, marriott down 10%, hyatt down 8%, hilton lower by 5.33%. because, of course, we know that we are seeing an increase in covid cases around the united states in some states. car rental agencies have been losing ground over and over but right now, avis down 13%. hertz which of course a couple weeks ago had to apply for bankruptcy, is down 19.5% to just $2.03. with all of this red on the screen, you would think it would be a bumper day, positive day for stay-at-home stocks but even as that prospect of a second wave of covid-19 infections

inches closer to reality, we've got tepid moves here. netflix down 1.5%. electronic arts down 2%. blue apron, that one stay-at-home stock, the make your own meals at home company, is up 3.5% to $10.11. why? why is today looking like it is? let's get to the triggers of this broad-based selloff. number one, yesterday in this hour, federal reserve chair jay powell said this is what he sees. he doesn't expect the fed to raise rates again until 2022 because he doesn't have a huge amount of confidence that we can somehow just eliminate 20 million people unemployed like that. well, immediately investors read that as things are bad, things must be that bad that we need low rates for years. well, you witnessed the plummeting ten-year yield. the ten-year yield just four days ago was more like .86%. we are at .66%.

20 basis points gone? so yeah, we are looking at a ten-year yield at .66%. that shows fear in the markets. number two, rising infection rates in some of the states that have reopened. that of course we talked about. number three, to our traders for number three. guys, after the fastest runup rally in history, i'm not surprised that the market is just simply suffering from altitude sickness, right, sarge? if that's the case, the dow is having its fourth worst day ever, is that a little bit of overkill or realistic? >> no, it's realistic. you got to understand that jay powell is right. we are not going to have a v-shaped recovery. we will have a reverse square root symbol type recovery where we come halfway back, then go sideways maybe for a long time because it's going to be a drag on growth. now, what investors can do, i look to my four baskets of doom in times like this. we go to the vaccine therapeutics group, pfizer,

moderna, johnson & johnson, merck, regeneron, teledoc. to the work from anywhere. not the stay-at-home stocks. that's entertainment. people aren't going to have money. work from anywhere stocks, microsoft, sales force, adobe, who reports tonight, marvel technology. you need security. we go to the safe retail group which means they also sell groceries, amazon and walmart. i almost had costco in there but they failed recently so they're out. now to the pantry groups, things that can stay on your shelf for a month. conagra, campbells soup, pepsi cola. liz: that's one kind of liquid but phil, we are looking at another and that is black crude. black gold. it is not gold right now. it's down about 9.33%. still, at $36.21 a barrel in the aftermarket, remember, for those of you who were on mars or somewhere else, i guess two months, month and a half ago, we

were at negative 40. remember that freaky friday, whatever day that was? >> i sure do. i think most of the exchanges in the world remembers it as well. it was a historic day. i'll tell you, we had the worst headline that i think, my biggest fear about this bull market has been a second wave of this coronavirus. you know, it's really disappointing to hear these kind of headlines come out because let's face it, the market was looking ahead. it was believing that the fed was going to get ahead of this coronavirus by putting in the stimulus. it believed that americans were going to get back to work, so the concern is that if we have to shut things down again, that's a bad thing. i will tell you this. the market is ahead of itself. we are way ahead of ourselves on the selloff. the reason is because we don't know enough. just because we have had one spike doesn't mean we are going to get a second wave. it could be an aberration. so there's not enough data. so with the fear factor, in my opinion, it's one of the main reasons we are really getting beat up here.

liz: we were already showing, guys -- really, really, really quickly, sarge. >> okay. just for the folks at home, this will help them, okay. the standard & poor is trading at 3021. the 200 day moving average is 3013. we hang on to that, we might be okay for tomorrow. we don't hold that spot, there's about another 120 points to the down side. that's important. also, i'm short -- liz: okay. >> nobody but nobody is paying $1200 for a phone next year. liz: i don't know. some parents can be convinced by very very vicious children who push them hard. apple is down about 3.8% right now. guys, thank you very much. we've got so much action that the dogs are actually barking here. okay? the closing bell ringing in about call it 49 minutes. yep. boy, that dow down 1659. believe it or not, we are off

the lows. just a month after taiwan semiconductor unveiled plans to build a $12 billion plant in the u.s., lawmakers both sides of the aisle are now looking to dangle a large carrot in front of the whole global semiconductor industry. in a bid to encourage them to move statestiide and away from china. up next, a fox business exclusive with the u.s. undersecretary of state for economic growth, energy and environment. the point man for the project joins me live when "the claman countdown" returns. rough day in the markets. we know it. we are walking you, running you through all of it. (vo) since our beginning, our business has been people.

and their financial well-being. it's evident in good times, with decisions focused on the long-term. and crucial when circumstances become difficult. that continued emphasis on people - our advisors, associates, clients and communities gives us purpose, strength and a way forward. today. and always.

and now for their service to the community, we present limu emu & doug with this key to the city. [ applause ] it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. and now we need to get back to work. [ applause and band playing ] only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

liz: wow. you know, uber is probably sitting there saying that hurt. ouch, that smarts. grub hub ceo matt maloney saying a deal with uber didn't fall apart due to antitrust concerns. well, then what was it? grub hub reached an agreement to be acquired by a completely different company, a european company just eat takeaway in the final hours of negotiation with uber. to cheryl casone in the fox business newsroom for the details. wow. uber got played here, didn't it? cheryl: i think they might have. that's a great point, liz. this deal was for $7.3 billion that they signed with the europeans. it's going to give that european name a hold in the united states. all stock deal. values grub hub at $75.15 a share, 27% premium to grub hub's closing price of $59.05 last night. uber has been in talks to buy grub hub but talks fell apart over reportedly the price and

regulatory issues, although as you mention, maloney saying that was not the case. could be a he said/he said thing. this will be the world's largest food delivery business outside of china. the companies plan to place extra value on volume at independent restaurants which should, they say, drive profits and drive growth for the company and when the news broke, shares of grub hub took off, went nuts. uber actually, as you can see again, was actually under pressure when the news crossed. wedbush analyst dan ives believes grub hub has about a 24% share of the u.s. market and food delivery, a lot more popular during the coronavirus pandemic, obviously, whether it's grub hub, door dash or uber eats. which is now just, liz, uber eats. liz: yeah. pretty huge, though. yeah. matt had basically said he didn't want to give uber eats that much power, but i mean, listen, $7 billion versus $6 billion and change, that's kind of the answer right there.

thanks, cheryl, very much. closing bell ringing in 48 minutes. sorry, why can i not get this right? 38 minutes. california regulators declaring uber and lyft drivers, speaking of uber, considered employees versus self-employed people. the new order striking at the heart of this gig economy business model. both ride hailing services have said you know what, if we have to reclassify our drivers to full-time employees it's going to negatively impact profitability. so shares are both down, we already showed you uber down 10%, lyft is down pai8.5%. coming up, as the july 1st deadline approaches, is dish signaling its deal to create a fourth wireless network might be in real jeopardy? charlie breaks it next. he's got the details on the troubled deal when "the claman countdown" returns. dow is down 1756. heading back down to session lows.

massmutual has been helping people weather storms. let us help you prepare a plan to protect your family, your loved ones, and your future. find a financial professional at massmutual.com and people you can rely on. i'm a dell technologies advisor. me too. me too. me too. and if you're a small business, we're with you. we are with you. we're with you.

we want to help. so we'll be right here. at home. answering your calls. providing support. and standing by you every step of the way. bye bye.

liz: when is a promise to the government like you'll start a wireless network, when is that not a promise? when a global pandemic and a market selloff enter the picture. but will that be the excuse dish ultimately gives if it backs out of a deal it made during the sprint/t-mobile merger talks? let's get to charlie gasparino, who has been following this. is that going to be what happens? what are you hearing? charlie: some of that. let's be real clear here. "the claman countdown" busted this story wide open a couple days ago and now it's the talk of the telecom industry, thanks to lydia, who did great reporting on this. here's what we know. telecom executives right now are talking to private equity about a potential sale or purchase of boost if ergen does not go through with his plans to buy boost, the prepaid network.

this is a big deal. boost was essentially being sold to dish in order for the justice department to give its blessing to the sprint/t-mobile deal. they still have to sell it if ergen reneges or tries to back out. what we are hearing now is he's at least trying to renegotiate the price. as he's doing that, from what we understand, telecom executives are quietly shopping a potential to buy boost from t-mobile which has to get rid of it. it can't keep it. if it keeps it, it's violating its consent decree with the justice department. that's what's going on right now. we should point out we put calls in to dish, to the justice department, which from what i understand is trying to mediate some sort of deal here between the two to try to save this thing, because quite frankly, this was makim delrahim's idea. makim delrahim is head of the antitrust division. in order to get doj's approval, get it through the staff, he did two things. he basically said mr. ergen, we

will give you more time to buy, to use your spectrum, he has a lot of unused spectrum, to build another wireless network to take the place of sprint when it merges with t-mobile. on top of that, we want you to buy boost, the prepaid mobile network that t-mobile has because they have to essentially sell stuff to get smaller so they can deal with the anti-competitive issues. right now, it's coming down to the wire about buying boost. kind of interesting, telecom executives are saying well, we thought we had agreement, what's up here, how could you just say no now, how can you try to renegotiate. apparently final terms were never totally negotiated. that's what we understand, or agreed upon. the other thing is, he may be using force majeure, an act of god, by saying the pandemic essentially hurt boost's business, focuses on low income people, they have been getting hit the most from the pandemic lockdowns, therefore, i want a

lower price, i want to renegotiate the price and not pay $1.45 billion. so that's where we are right now. again, "the claman countdown" is way ahead on this. everybody is catching up. if he doesn't buy it, if he backs out or reneges, there's going to be some explaining to do. justice department will have to tell us exactly what went down, what went wrong. mr. ergen is going to be somewhat -- i guess he's going to be -- he's going to rub the people in the justice department and s.e.c. the wrong way. why? because he's sitting on that unused spectrum. they want him to use it some day. this is going to be an interesting thing if he doesn't go through this. as you know, rubber's meeting the road. july 1 is coming down the pike. i just also want to update on major league baseball. this is like another running soap opera that's going on here. major league baseball is expected to answer the latest proposal by the players and do it tomorrow. now, from what i understand, rob manfred, the commissioner, wants and prefers a negotiated

settlement. that means he does not want to impose the nuclear option of just playing 50 games and calling it at that. he wants a real season. he wants playoffs. he wants all the stuff, shortened but not at a 50-game season. from what i understand, at least what they are working on now, things could change, he's moving somewhat closer to the players' plan. the players' pitch was simply this. full salaries, pro rated, and an 89-game season. i don't think the owners are going to pay full salary pro rated but they are going to move up their number closer to that 100% and increase the number of games. again, expect this tomorrow. it's not written in stone, obviously. nothing is. they don't want to do it today and they didn't want to do it yesterday because of the draft. so this is coming down the pike and hopefully by this weekend, we will know whether we are going to have a decent major league baseball season. back to you. liz: you know, okay. charlie, thank you. i'm just being told that the cleveland indians will win the world series. thank you.

in my dreams. yeah. i'm still waiting for that. all right, folks, we are now at session lows but because it's past 3:25 p.m. eastern time, no matter what, unless we are down 20% on the s&p, we're not even close to that right now, there will be no circuit breaker pause. so at the moment, at 3006, that's the level that we stand, we are looking at a pretty big loss of 5.7% for the s&p and it has fallen below its 200 day moving average of 3013. remember sarge was just telling you if we can close above that or at that, we should be okay. we will be okay no matter what, but we are now below it. all right. dow is down 1816. we have 31 minutes before the closing bell rings. microsoft, the latest tech player deciding to limit the use of its facial recognition systems to law enforcement organizations. the tech giant says it's waiting for congress to now pass a

federal law that would regulate the use of the controversial technology. microsoft joins amazon and ibm, both of whom made similar announcements in the wake of nationwide protests to end police brutality. all three stocks are down. ibm down 9%. microsoft down 4.8%. amazon down 2.7%. up next, as we await the president's arrival in dallas, where he will discuss police brutality issues that triggered the george floyd protests, it's the dallas mavericks who have already embraced the topic. the mavs have the only african-american ceo in the nba. mark cuban hired her in 2018 to fix major inclusion and diversity issues in the back offices, on the team, in the whole organization. she's here in a fox business exclusive on why issues off the court can make a winning team next. we'll be right back.

♪ ♪ yeah ♪ ♪ y-yeah ♪ ♪ yeah ♪ hey, hey

♪ yeah apps except work.rywhere... why is that? is it because people love filling out forms? maybe they like checking with their supervisor to see how much vacation time they have. or sending corporate their expense reports. i'll let you in on a little secret. they don't. by empowering employees to manage their own tasks, paycom frees you to focus on the business of business. to learn more, visit paycom.com hold on one second... sure. okay... okay! safe drivers save 40%!!! guys! guys! check it out. safe drivers save 40%!!! safe drivers save 40%! safe drivers save 40%!!! that's safe drivers save 40%. it is, that's safe drivers save 40%. - he's right there. - it's him! he's here. he's right here. - hi! - hi. hey! - that's totally him. - it's him! that's totally the guy. safe drivers do save 40%. click or call for a quote today.

liz: all right. we want to take you inside the event where president trump is soon expected. this is dallas, texas. at any moment, he will be there in that room to meet with pastors, law enforcement officials and small business owners as well to discuss plans for a quote, holistic revitalization and recovery of the united states. of course, in the wake of the death of george floyd at the hands of a minneapolis police officer which has triggered unbelievable massive protests, not just here in the u.s. but worldwide. well, the president's event comes two days after the dallas mavericks held their own forum called courageous conversations. this involved 200 community members, current and former nba players and police officers who all sat together to discuss how they can collectively work together to make meaningful

change in the dallas area and beyond. joining us now in a fox business exclusive, the first and only african-american female ceo of an nba team, the national basketball association taking over the job after more than 35 years at at & t, cynthia marshall. great to have you. i need to know right off the bat what your meeting was like two days ago. >> our meeting, it's great to be here, thanks for having me, our meeting was amazing. there was a lot of energy. we were focused. our theme was listen, learn, unite. so we had three different conversations to help bring the community together to help them to understand what is really underneath all the protests that are going on across the country, and then to just share some experiences. we had a conversation called welcome to my world, where we had some of our african-american employees share their experience of being black in america. we had some of our coaches and

others share their reactions to the george floyd situation. and then we had six leaders who actually lead the different systems that in my opinion, undergird oppression and racism and so they talked about where we are now as a community and then where we are going. we laid out some concrete action plans and so i'm just excited to see dallas coming together. we are going to make some changes. liz: give me a sense of why an nba team, you guys were already engaged in all kinds of conversations with the entire organization. mark cuban, the owner of the dallas mavs, had brought you back in in 2018. what was the genesis of that and how has it morphed especially during this time post-george floyd murder? >> mark brought me in because we had a crisis. we had a crisis regarding how we were treating women and also how we were treating people of color. so he brought me in to basically execute on a culture

transformation. so he gave me a mandate and we put together -- i put together a 100-day plan and we focused on modeling zero tolerance, we put a set of values in place and those are character, respect, authenticity, fairness and teamwork and safety, which is really important right now. we put our values in place and we executed on a plan. we put a women's agenda together and just put an in exclusiclusi diversity strategy together. two years later we have made lots of progress. liz: let me play devil's advocate. i can hear some people saying you are running an nba team, you care about two things. winning and winning. okay. that's it. they just want to win. well, i guess make money would be the third, right? they want to make money and they want to win. now, dallas mavs have won a championship, i believe, 2011, but tell me where this all fits in. i can hear cynics saying you know, with the eye roll, okay, yeah, but how does that help the team win. >> well, first of all, it helps

you with recruiting. you have to have good employees to run a good organization. so when people know that you accept your corporate social responsibility, when they know that every voice matters and you are a place where everybody belongs, that helps in the recruiting area. they want to do business with you. they want to work for you. sponsors want to do business with you when they know you accept corporate responsibility. minority suppliers want to do business with you, women suppliers, and that's good for competition, good for the bottom line, diversity is not just a good thing. there's a bottom line business impact to having a diverse group of people at the table, a diverse fan base. even right now, what we're doing, we are saying people see that we are relevant. we are already expanding our fan base and our sponsors just by what we are even doing on this issue. so recruiting, sponsors, diverse suppliers, fans, marketing, it all impacts the bottom line. liz: the nba season is going to

restart i believe july 30th or 31st in disney world in orlando. the mavs have made the cut. how is it looking? are you guys prepared for all of the restrictions regarding the coronavirus? >> we are prepared. the nba has been working very very hard which is why it's taken time for us to figure out how to bring all this together, health and safety is number one for adam silver, the coaches, all the owners, and so we are ready. our players will be coming back soon. so i'm excited. we're ready to get going. liz: okay. before we say good-bye, you know i'm a fellow cal bear. i've got my little helmet here. every time there's a cal bear alum, you were the first africa ch n american cheerleader on the football team. here's my helmet in honor of you. >> here's my cup in honor of you, fellow bear. go, bears! liz: go, bears. it is so great to have you. the first african-american --

first ceo of an nba team, african-american and female. thrilled to have you. thank you so much. you belong there no matter what. from the business of sports to the business of semiconductors. the latest in the u.s. counterstrike to the made in china 2025 strategy involves dangling a very large and i guess we could say green carrot in front of the specific industry. senators mark warner, democrat from virginia, and texas republican john cornyn have come up with the chips act, $25 billion to bolster research and grant tax credits and incentives to companies who build microchip operations in the u.s. the state department got out ahead of that. in may, it announced it's working on a $12 billion deal with taiwan semiconductor manufacturing to build a plant in the united states. undersecretary of state for economic growth energy and the environment, keith crock, is point man for much of this movement to secure the semiconductor supply chain. undersecretary, thank you for joining us. good to see you.

$25 billion is one big carrot but these buildouts are expensive. taiwan semis is $12 billion. that eats up ostensibly half of what the senators are proposing. how do we make this successful without a much bigger investment? >> well, first of all, thanks for having me back on your show. you're right, these investments in the semiconductor industry are massive. that is because they are so valuable. also, the semiconductor investment, they bring their ecosystems with them. what they are doing is building a five nanometer plant and this is the most advanced in the world, and they bring the ecosystem with them and this is critical for national security. it's also critical for bringing the semiconductor fabrication business back to the united states. and we are really excited about this. we are working on a number of

semiconductor companies and it's a game changer for national security. they represent the largest off-shoring in u.s. history. liz: securing the supply chain is more important than ever, and i have to ask you, though, how is this going to work? taiwan semiconductor does a huge amount of business with china. most of it with huawei, which is certainly in the u.s. government's crosshairs. they applied for a waiver. can they build a plant in the u.s. and continue to do business with huawei, can they serve two masters? in other words, will you grant them that if they threaten to pull the $12 billion operation away from the u.s.? >> well, first of all, 65% of their customers are in the united states. second of all, when we announce the deal, we announce what we

affectionately called the 5g trifecta. and their most sophisticated chips were going to huawei. they aren't anymore, because through our export controls we closed that loophole by utilizing our strength and equipment manufacturing and software design tools so they will not be shipping to huawei. that was a big part of that announcement, because it applies to semiconductor plants all over the world. then the third thing we announced was the 5g clean path. that means any network traffic that comes into the united states state department, foreign or domestic, like our embassies, has to come in through a clean path. that means it cannot have touched an untrusted vendor like huawei or zte. we see other countries adopting this principle. we also see companies adopting that and so this is huge in

terms of preventing the ccp's 5g strategy that we all know is dangerous, is for malign purposes. liz: keith, we have only got a little bit of time here but i do have to ask. the u.s. government has cried foul because china and the government gives so much in subsidies to their state companies and that gives them arguably an unfair advantage. the u.s. sued european countries over the airbus subsidies saying that that really hurt our aerospace companies like boeing. here we are giving incentives. is that the same thing? does it look a little bit confusing to some people saying wait, it wasn't okay when they did it but it's okay when we do it? >> well, you know, if you look at the state of arizona, gave a significant incentive, you know, the bill you were referring to is a most welcome bill. this is for the entire

semiconductor industry. and i mean, it's part of the -- what we need to do in terms of our national security. i think one way to look at it is similar to the race to the moon. all the great spinoff technologies that came off of that. if you think of the semiconductor business, it underpins ai, 5g, autonomous vehicles, cyber-computing, and we know that this is the number one obsession of communist chinese party that they want to control this industry. we have always had a great strength here and we need to bring the fabrication side back because that's strategic. liz: i want you to come back, because this is a big story. when they break ground, we want to see it. keith krach of the state department. we are going commercial-free. folks, we are looking at a lot

of fear in this market. the volatility index is up 48% right now. we are looking at the fourth biggest dow point loss in history, down 1716. we are coming right back. commercial-free. don't go away. going to be over and we don't know exactly when the stock market will reach its bottom, we've got to be prepared for this to last a long time. if you assume that you're out of work for nine months but you end up only being out of work for... i come face to face with a lot of behinds. so i know there's a big need for gas-x maximum strength. it works fast. relieving pressure, bloating, and discomfort before you know it. so no one needs to know you've got gas. gas-x

and now for their service to the community, gas. we present limu emu & doug with this key to the city. [ applause ]

it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. and now we need to get back to work. [ applause and band playing ] only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ liz: i just mentioned the volatility index. check it now. we are looking at the vix or the fear index surging. it is up 50.8%. i just glanced at it. it was 49. now it's 50. nearly 51%. it is on pace to finish at its highest level since may 1st. what was happening may 1st? we know we were in the middle of this virus and the fear and the lockdowns, but this new news that there are more states that are showing an increase in cases

of the coronavirus has a lot of fear pouring into this market and the market in turn is nose-diving. regarding the volatility index, this is the vix's fourth day of gains, making it the longest upside streak since february 25th. to our traders. we are going commercial-free. let's bring in tim anderson from the nyse and chris johnson -- wait, i'm sorry. tim anderson, i want to get to you first. chris robinson is at the cme. tim, give me a sense of whether anything is moving or the whole sort of broader index is just a crater. >> well, clearly everything is down. it's easily a 90% down volume day. decliners, at least 15 times advancers. but this is i think a byproduct of the fact the market was clearly ahead of itself last

week and the red flag that was missed by a lot of people was this massive short squeeze that took place in these companieste bankruptcy, american airlines, hertz, tiffany's, a number of others. stocks that just had astronomical rallies at one point early last week, where the biggest example was hertz, up 175% one day, down 80% the next day. clearly investors have felt like they had missed so much of the rally. we're looking around for cheap stocks that hadn't participated yet and the short sellers had to double their positions, double them again and then probably eventually [ inaudible ] by whatever fund they were trading through. i think today's action is largely in response to what the

fed said yesterday. because the fed -- liz: yeah. >> -- is always going to be very conservative on looking at what their guidance is going forward. liz: except that, chris, what he said, what jerome powell said was we are going to keep rates incredibly low, 0 to .25% until 2022. usually that is a screaming buy signal. yet combined, when you mix it in, you do a little alchemy with rising cases of coronavirus, suddenly the whole market froze and then began melting down. >> well, 72 hours ago we had record highs. we just rallied, in 11 weeks, over 9500 points on the dow. so 52% gain, here we are, if you do the math, roughly from the top to the low today, we are at 9%. so back in the day, we were always told that 5% moves are noise. we are in a market that's very volatile. you will get bigger moves,

bigger swings and because the markets are set up now, you get these markets that move very very quickly. why is the market down so much? i can tell you, the one thing you can do if you are long stocks and you can't get out, sell dow futures. even though you still own your stock, your hedge is protecting you. you see people pound on the s&p, that's really what's going on. if you can't get out of your stock position, you are buying s&p puts and that's what's going on. people are selling the s&p and that's what this market is set up to do. you're not obligated to watch the sky collapse. you can hedge yourself and when you get a market spook like this, you are seeing it happen and it's happening in realtime. so it's pretty interesting, pretty scary if you are on the wrong side, but i would not -- i would expect to see more volatility like this. we've got 150 days until the election. that's roughly 100 business days. we are going to see moves like this, i think, quite often. get used to them. liz, tim, chris, stay with us.

i want to bring in two stock-pickers. michael shelton rdm financial and sean owe ohio hara, pacer etf. what do you do with the nasdaq down 512 points? >> volume on etfs picks up. we're not active managers. we look at the different strategies to figure out where we think is opportunity. market is trading up on a story forever. we'll open up soon, everything will go back. good news last week on the employment side. the bad news this week maybe we won't open as fast f you're looking for opportunity in a market like this going forward, we think one thing for certain will happen regardless when we do open back up, we'll shop online, more e-commerce will grow faster than anybody thought. we like the industrial real estate sector, names like

prologis or duke realty will have to buildout 4 to 500 million square feet in additional distribution space f you're looking for places to derisk, put money ahead of the growth curve as we come out of this, we know we will shop on-line more. we need more distribution centers to satisfy that need. liz: yeah. it is important. viewers you can actually tailor your real estate investments two things you might be an opportunity, building out server farms or sean just mentioned any kind of big distribution centers. folks there are 3 1/2 minutes left, 3 1/2 minutes left of trade. we're down 1866 on the dow. michael, we saw financials, they are tanking at the moment. you say bank on the big banks. tell us why you're getting in on a day like this? >> this is important. we're financial advisors. we try to make sure clients have the right asset allocation to

ride out the inevitable up and downs in the market. our two favorite are technology. you have to have some froth in your portfolio and health care, our garp, growth at reasonable price. we think 12 to 18 months the economy is likely to recover. we've seen some signs of that it will not be a straight line. when the economy recovers to get more solid footing. you consider investors adding financials and industrials to the portfolio. those are the sectors which will likely benefit as the economy rebounds over time. liz: sean, we had sarge our trader close to the top of the show. he called it reverse square root. it is not looking like a v. as michael said it will not be straight line to the upside. with that said, you look what is great for your investors. we know one thing we're using more technology. is it tech? check the nasdaq down 503 points right now. >> i talked in the past about

the technology buildout that is necessary. again on the publicly-traded real estate side. name like equinox or cyber trust. two things happen more going forward, we'll use more internet and we're going to shop more online. if we use more internet. data centers, cell phone tower networks and fiber-optic networks are great opportunities f we shop online we need to buildout ecosystem that support that on the distribution side. by the way, they go together. tech can't happen unless the data centers buildout. tech can't happen without the fiber-optic networks. if you want to diversify away from tech exposure, five names are 40% of nasdaq 100. this is way to diversify and participate in some growth. liz: okay. sean, michael, chris and tim, i want to say that the 10-year yield is at .66 right now, just a couple of days ago it was at

.88. [closing bell rings] we're seeing major fear in this market. what will happen tomorrow? we get a sense with futures tonight, 6:00 p.m. eastern. i will be on twitter live. i let you know how futures trading begins. today, market rout. time for "after the bell." connell: fears of a second wave really slamming into wall street today. stocks plunging throughout the day. as we see a rising number of covid-19 cases in some states. hospitalizations starting to go up in some areas. so we're watching those numbers. we're watching dallas, texas at this hour. president trump just landed a lot of feed. he is about to make announcement ahead after discussion with local leaders. we'll be there as soon as the president's remarks fin. thanks for joining us. i'm connell mcshane. melissa: i'm melissa francis this is "after the bell." the dow closing down 6%. the major averages seeing the biggest