is where t going to start to two up but it didn't you could see not only how did rates turn but the kbw financials in general seem to follow they haven't hit their lows that were accomplished. it's only a matter of time if we continue to see the ten year yields we will have a retest of that low yield of 54. tyler, back the you. >>> thank you very much. still ahead, where's the bacon now is not a good time to be a pork producer. jane will tell us why after this quick break. every financial plan needs a cfp® professional -- confident financial plans, calming financial plans, complete financial plans. they're all possible with a cfp® professional. find yours at letsmakeaplan.org. >>> welcome back bacon is taking a beating with prices falling to all time lows even as producers warn of shortages. jane has a look at a when's behind that drop >> kelly, there is plenty of meat, okay with restaurants closing, in fact, there's a glut that's one reason why bacon at the carcass level is seeing all time lows. now livestock producers say they are seeing a back up in trying to get their animals to pro

tom, simply, kbw has connections in conversation nationwide. what is your team hearing from banks?anks-- i feel as if they are in much better shape for this crisis than they were in the last one. eager toat anybody was finally get into a credit cycle, but the seasoned management teams that i'm talking to feel as if that capital, the pretax earnings power, the liquidity that is in the industry is in a much better shape and they feel as if in some ways while they're going to take hits for sure and losses, they feel as if they can be part of the solution rather than part of the problem. i think that is generally the mentality. i would say that is number one. number two, a little sense of exhaustion because this triple p program, the table protection program, came on so quickly. i think history will suggest it was unprecedented but that most of those funds are coming through the banks in really built tome the banks execute that. that is what i'm hearing right now from the industry. we are on the precipice of earnings. we are going to hear a lot more specifics from management teams over

kbw index outlook down 2.8%. a real divergence. as a result, there is another divergence. we may have risk stocks higher but we also have haven bonds and the yen higher. the japanese yen now up a fourth day in a row. it tells you not everybody is believing not just the rally today but the rally we have had in recent weeks. david: in fairness, you cannot blame investors if they do not know exactly which way this is going. thing started up a bit and then came down. some of the stocks that have been beaten down came back. that is a big piece of the rally. one reason some strategists and traders do not like it in terms of the companies that had been january,y the virus in february, and march such as the leisure companies and the airlines, there has been a bounceback over last few weeks. some say the rally off of the lows in march, there are holes. if you look at the s&p 500, there is a huge move down from the peak to the trough. now we are halfway back up. it is hard to know which side and what the greater risk is to the upside. do not fight the tape, or is it to the downside

kbw index outlook down 2.8%. a real divergence.

. >>> meanwhile kbw upgrading jpmorgan to outperform while lowering the price target saying jpmorganell positioned to withstand the recession and come out better because of the balance sheet and say investors because it's a high quality franchise. down 6% today in a tough session for financials. >>> finally, mkm upgrading papa john's to a buy with a $64 price target saying that segment is better positioned than other restaurants with digital and the delivery infrastructure. there are reasons for the upgrade is clear evidence of same store sales momentum. and management that can further support the franchisees and pulled guidance yesterday. still up nearly 5% today on the back of that bullish call. >>> residents of pennsylvania have now been placed under a statewide stay at home order this right after florida issued theirs finally and this just before the new $350 billion small biz coronavirus loan program launches the launch is tomorrow and millions are expected to apply treasury secretary nmnuchin was on cnbc earlier today with this message to small businesses. >> i very much want p

staying with us, tim morgan, financial specialist at kbw.minutes away from the european equity open. futures dewpoint higher by 1.3%. expecting a solid bounce. but with washington's biggest banks, we will look at the winners and losers next. ♪ anna: welcome back. we are minutes away from the start of the european equity trading day. futures point higher. that's get an update on your new stories. ray dalio says investors would be crazy to hold government bonds because of money printed by central banks to rescue the global economy. the founder of the world's largest had fun says the fed has no choice but to spend trillions of dollars -- largest hedge fund says the fed has no choice but to spend trillions of dollars. his fund found itself on the plunging side last month. are getting a very important breaking headline in germany. the country is going to provide 30 billion euros in backstops for credit insurers. these are companies like i lianz that sell .nsurance to pay merchant they are going to build a receivable if clients can't pay. for exam

, some of these special situations can benefit at this time, but week to date, the bank stocks, the kbwndex, is down 13% as we stand or 12% as we stand right now. the nasdaq is up 3% over the same three-day-trading period. the banks are down because forecasts have been pretty dire for the cyclicly linked companies to the economy that we'll see companies go bust. you have a 15% differential where the rest of the market can rally, even though these big banks are coming out to say they're concerned about the economy. does that make sense to you? >> no, it doesn't make any sense at all i do think that there are mechanical forces at play that drive certain stocks versus others, and not every person is smashing the buy button or the sell button necessarily has an economic outlook that's an important component. i also think that a lot of money is run based on momentum and where that appears, more momentum will appear that's the definition of the term i think you have a lot of people chasing an ever-dwindling list of stocks. i think that's the right point but it doesn't necessarily are to rever

kbw banks index down 35% year to date does that make sense to you? is this an opportunity for the investment banks like goldman? >> it's a tough environment. a tough environment for the clients. the banks are a function of the clients. they're there to serve clients yes, they're going to need the raise debt so the debt capital markets will be quite busy i don't know what opportunities there will be in the equity capital markets. i don't know what opportunities there will be in the m and a cycle. there may be some m and a activity if you think of the business, the margins you're going to make are going to be tough and look, they're going to be a lot of low loss verves taken. remember the lending business is not a risk free business and we get reminded of that every cycle. so the large lending banks are going to have to take huge losses in the cycle. hopefully, they'll adequately reserve and if the economy turns around, they'll be able to add back some of the reserves and they'll outperform, but banks need to be conservative. >> thanks so much for join

kbw making calls on two big banks today, upgrading jpmorgan saying it will withstand a recession. they downgraded citi to market perform from outperform citing city's elevated risks outside the u.s. and less certainty on the damage coronavirus could have on the bank's revenue growth the bank has no plans to offer its dividend >> there are some structural nuances, jim, between the u.s. and europe they're a bit different. one is that the european banks pay an annual dividend so there's a window in which to declare. we pay quarterly dividends if you look at the capital levels, the earnings of the u.s. banks, they come into this in a bit of a different -- from a different position, a position probably of some more stretch. so, you know, from our perspective, our dividend is sound and we plan on continuing to pay it. >> morgan stanley james gorman joined us and echoed a similar sentiment. >> the recipient of the dividend, many time small individuals who own these large bank stocks all over the country, to lose that income at this time, i happen to think would be a very poor thing to do

the kbw bank index tumbling nearly 73% >>> a new note out of goldman. the bank suggesting that world's major economy will be shrunking by 35% that is almost four times more severe than the impact of the 2008 crisis. from that note, saying though the number of new virus cases appears to be peaking globally, the bad news is, this is their quote, the improvement is likely a result of social distancing and could reverse quickly if people just went back to work. what do you think, joe >> i feel much better this morning. i'm not sure i'm afraid to feel good anymore. in europe, things look a little better some of the hot spots. we were expecting a rolling, every part of the country to be affected and maybe that being mitigated by the state at home i'm hoping the mortality rate is way below what people thought. i don't know i watched it play out. i told you this, i think the day we had closed the night before on the s&p down about 19.5%. the futures were called down about 800. coming on and said coronavirus is going to put an end to the 11-year bull market. he