nordstrom today trying to tempt junk-bond investors with a 10% bond yield. they are perhaps seen as a discount retailer that can do well in a recession. luxury has been hit a lot harder. guy: absolutely. it is going to be interesting to see at some point whether or not people see some value at the more risky end of the high-yield market. those yields have got to go a little higher. coming up, we are going to get more insight into the markets and a failure of european finance ministers to reach a similar deal. our guest is this woman, steven major, global head of fixed-income research joining us man right-- is this here, steven major, global head of fixed income research joining us from hsbc. this is bloomberg. ♪ ♪ guy: live from london, i'm guy johnson, with alix steel in new york. this is the european close on "bloomberg markets." italy has said it won't except a bailout unless it comes with some degree of european debt mutualization. italy went into the crisis with a debt to gdp ratio of over 130%. joining us now, steven major, hsbc global head of fixed-in

macy's, nordstrom, kohl's and jcpenney come up as the hardest hit. so what will the retail landscape look like after the crisis let's bring in retail reporter lauren thomas and jan niffen ceo. it's great to see you both lauren, let's start with you you know, it's dangerous in the media obviously to speculate about bankruptcies but how close are we for some of the household names? >> sure. well, thank you for having me on, kelly. appreciate it. but certainly,the clock is ticking for some of these department store chains faster than others. i think first and foremost neiman-marcus could file for bankruptcy as soon as this week. so the -- less time to spare i guess there and jcpenney, as well, is on top of the list i think both of these companies missed interest payments on debt last week. which was kind of put them into this grave period of 30 days where there's not much time to come up with money or else they could ultly slide into bankruptcy so those top of the list and macy's, trying to come up with cash, as well. i think one department store chain,

fifth is nordstrom two years ago did you know the nordstrom family tried to take this company private for $8.4 billion what did the board of directors special committee say? no, not high enough. well, i got news for they have now it's $3 billion. oops i think there's a place for nordstrom as the last man standing feel about department stores with niemann in trouble is it worth more than 20 bucs? i think it has a slew of horrible numbers ahead the chain wasn't doing dha well before the pandemic. it has rack business i can see the stock rallying at 20% at these levels. at 25, let's skiddle they have to raise debt problem. i think it will have a bit of a bounce no, huh-uh, later. 7th, whoa, l brands, forget it unless they can force the sale of victoria's secret after the virus hit. this one is too toxic for me i like bath and body works i say stay away. 8th is live nation well managed, but a stretch. i can't think of a better way to spread the virus than going to a concert. i think this one is like the cruise lines it figures cross mode, right live nation is betting on feckless reckless

nordstrom's problems were a bit more surprising.d chain the late bruce nordstrom told me as great as his customer service was, amount sonamazon's is bettr can't arc y can't argue with him my mom labored selling women's lingerie or gimbles where my dad was fired from selling gaberdine trousers we knew we didn't need the department stores, but now the pandemic is making us realize maybe we didn't need any of them at all we learned sycamore, the leveraged buyout is trying to get out of the deal to buy victoria's secret. makes sense. can't try on bras when the mall is closed. wouldn't it be better to try them on at home? just guessing. it caused the parent company to get trashed. vf corp. tapestry, same thing. manny tarico on the show the mall is filled with stuff we don't need i remember when the cherry hill mall first opened. it was one of the first ones, an indoor palace. a paradise my grandparents lived across the street from it, october 1961 i was there. the store went up, another shopper's paradise unique, stunning then they put i

, and nordstrom's has announced they will be amending their credit.ant to take a look at some of the positives we are looking at. netflix, we know the story. they are posting first order results after the bell. you could see subscription additions that are really big. amazon also reporting next week. they are still hovering near record highs. tons of online ordering. finally, activision blizzard is up as everyone is home gaming. benchmark and buy share.to $72 a vonnie: president trump saying in a tweet he plans to suspend immigration to the united states over immigration concerns. he says the moves will also protect jobs. he did not give a timeframe or specify who exactly would be affected. let's bring in bloomberg white house reporter josh wingrove. can you give us any more details as to what this weed actually means? [laughter] josh: how many times have i been asked that question? we don't know. in particular, it sounds like they have not decided on timeframe. national,rien, the was asked how long could this last. he said, look, we don't know becaus

that is what is moving companies like nordstrom. luxury is getting hit harder but after some ofs, the retailers say they were hit the hardest during the market rout. david: thank you so very much to taylor riggs. we want to turn to the situation in new york particular with the hospital system. governor andrew cuomo has at the hospitals are redlining, at or above capacity. we welcome dr. steven corwin who heads up the new york presbyterian hospital, 10 hospitals and clinics in the area. it is consistently right the best of new york hospitals. we welcome him. he is the ceo and president of new york presbyterian. you said at one point you thought the apex for new york would be april 15, which would be one week from today. is that still your best estimate? >> thanks for having me on. we are starting to see a little bit of flattening. our best estimate is still right around that time. and we see am wrong by saturday a real trend in flattening. that would be the first piece of welcome news in a while. i am hopeful. guy: how are the hospit

forced to be closed down here, i think we're seeing extreme volatility, you think about macy's, nordstroms, kohl's amazon, walmart, target, costco, these guys have been anointed the winners here they were anointed the winners before the crisis, and because of the forced shutdown of all of their competitors, they've just done great. >> i mean, kayla had mentioned all this testing, lab corp. separately said they could do antibody tests and expect to be able to do 2000 tests a day by mid may. of the four of you, i would point to you as the one to most likely walk into a store and buy something, but what will it take for you to go into that store? i mean, a widespread antibody test that's sort of the question here how long can retailers with stand this pain? >> they would need to have some kind of suede or leather advertised in the window if you look at the outperformance of retail, and remember, this is a sector that's outperformed the s&p by almost 17% you do the spy against the xrt, of where there have been massive performance. it's no question that retailers are getting some sense that you

security concern nords stream 2 it's that heavily criticized by the united states and skeptical of nordstrom too but it is still russian gas that europe needs germany has more than 2 thirds of its gas and. eyes from russia which cannot be discussed away so you want to have your cake and eat it 1st of all the americans should calm down because they import billions of barrels nor but millions of barrels of russian oil and they should come down and look european come down there's an open letter from 60 member of parliament from 5 political groups a dramatic development in the germ it really stream to cause otherwise we could not achieve our own energy so you're prepared to play your energy security to russia our energy security is really the mistake was done 15 years ago when chancellor schroeder went into russian services and therefore we have made these mistakes and i am very bluntly in this way we politicians and io i would would be very careful because we all are guilty in that we have named this as of economic project it isn't in the comic project it was the one touch of to name this as an

mo of a teacher dressed in a pearl necklace and nordstrom separates.itter. erin: i think i gravitate towards the kids who are the toughest initially. it's a very competitive edge. it's lcre, "can i, can i k that kid?" but it was very evident that they didn't want to be there. ♪ [siren] the rodney king verdict had just been nounced, and i was in my early twenties. at that time, i was living inewport beach, this safe, idyllic seaside community. up uhat point, i had planned to actually be a lawyer.

high-end retailer neiman marcus preparing to file for bankruptcy while macy's, jcpenney and nordstrom are scrambling to avoid the same fate. but walmart looking to hire 50,000 employees on top of the 150,000 they just hired and other stores are adapting to the crisis. some whole foods in new york city and baltimore are now open for only online orders to speed up grocery deliveries and prevent shoppers from packing into the aisles. one industry group claims 85% of customers are not practicing social distancing in the stores. >>> homeowners, renters and small businesses may get some financial relief in richmond. tomorrow, the city council will consider an emergency order to suspend rent and mortgage payments. its supporters say it's not fair to expect people to pay their largest bills while they can't work. the proposed order calls for establishing a city service to assist small businesses and landlords that are filing for government assistance. the city already has a moratorium on coronavirus-related evictions. >>> starting on wednesday, alameda, contra costa and marin will be enforcin

we know thatmacy's and nordstrom are both looking for some financial help as well have to continue to fall this see how it develops rough the stand home order even one it is lifted they're going to have to adapt in san francisco, sarah stinson kron 4 news. >>next to 5 facebook wantto know if yove had any symptoms of the corovirus how the company is using the data to predict where there might be the next outbreak. plus he was the first celebrity to nounce that he had contracted covid-1now actor tom hanks is openg up about the battle he and his wife had with the virus. and protests are happening across the country including here california, calling for states to rpen by governor say wee still foov 80 ye nian haseen with you through thk and in, and now is no different. we're offering paymt options for current owners. ♪ r serve departnts arhere thelp. and now we're offering more help. no payments for three months. plus, we'll cov your payments r up to two additional months. this is help when you need it. >>people need to be in fact i know that sounds rrible but people get the flu every ye

for facilitating german dependence on russian gas you said the following about it i'm skeptical of nordstrom too but it is still russian gas that europe needs germany has more than 2 thirds of its gas supplies from russia which cannot be discussed away so you want to have your cake and eat it 1st of all the americans should come down because they import. billions of barrels nor but millions of barrels of russian oil and they should come down and look at the europeans also come down there's an open letter from 60 member of parliament from 5 political groups who wrote the following to agel americal choose the european way and not the germany way 1st your government is allowing a major rift between the e.u. member countries to remarks on that i was not defending or stream to since 2012 until last year but due to the dramatic development in the german energy change we need really no stream to because otherwise we could not achieve our own energy so you're prepared to play your energy security to russia our energy security is really the mistake was done 15 years ago when chancellor schroeder went

high-end retailer neiman marcus preparing to file for bankruptcy while macy's, jcpenny and nordstromre scrambling to avoid the same fate. but other retailers are seeing more business. walmart looking to hire 50,000 more employees on top of the 150,000 they just hired. and other stores are adapting to the crisis. some whole foods in new york city and baltimore are nowpe for only online orders to speed up grocery deliveries and to prevent shoppers from packing into the aisles. one industry group claims 85% of grocery store customers are not practicing social distancing in the stores, but at least one small businessman says he plans to reopen his wisconsin restaurant, despite orders not to. >> for the people that are tired of it and want to come out and have a meal by me, please do. you have that right. >> reporter: andrea fujii, abc news, new york. >> andrea, thank you. >>> there is growing backlash this morning after several large restaurant chains were able to get money from the government's small business relief program. they include a major steakhouse chain. critics say the larger

on the internet now there is no way that can make up for what they are losing most of these like nordstrom internet before and have lost the 70% even though the 30% were up which i don't believe it is, then they've lost a vast majority of sales. the one that can focus their internet arm the rest of them, they really won't. there will be significant changes and just the april if i indication the winners were winning more than the loosers were losing we'll get to a rebound before the season goes on >> speaking of retail, how quickly can we recover from the job standpoint >> i think quickly the world is going to be defined by the period before the virus and after. just as if this were a great war or like 9/11 or the great depression will will be a lot more logistics jobs that will be the hottest profession on the planet not just retail but every sector jobs will be in different places there will be more delivery jobs no way people will go to restaurants in the future and sit more tightly packed. there will be more food delivered to home and prepared foods. there will be more jobs but differen

>> yes, it wouldn't shock me, we have nordstrom did a deal yesterday. and it was -- it was some expensive money, candidly, and i say to myself, hey, treasury and fed, i guess you're ready to buy some nordstrom it really is there ain't no stopping them now. they just want to be there they don't want to be the reason things go badly. i think this is all preparation, david, for a may opening of the u.s. economy and it also makes it very clear, i think, that the $250 billion more that the small and medium sized business, it's going to be there. i agree with you about that one area that is on the cusp, but daf david, i feel much better about that are the oil companies going to go under not if the saudis are in there buying big stakes in oil companies and cutting back it's difficult for me to feel not, you know, it's hard not to feel better even as we know that social distancing is going to make it so you have a costco situation. where the first half to the month was terrific and the second half to the month was bad. of course, starbucks today, where they cut

amazon and disney including macy's and nordstrom's. dow shot up 1000 points shortly after the bell rang at 6:30 a.m. taking you there live and settled back a bit the dow jones gaining 5% back about 22,000. the s&p 500 up more than 4 percent and 100 points there to 25-getting close to 2600. the nasdaq back to 7600 also up 4.5%. workers at a mcdonald's and san jose walked off the job this morning. workers say the restaurant failed to properly protect them during this pandemic. the employees on north first street and san jose say they are forced to work without gloves and masks and they say that mcdonald's does not have adequate cleaning supplies. walmart is implementing a new safety measure after two employees at the chicago area and died from the coronavirus. walmart says the two male workers were men in their 40s and 50s with underlying medical conditions. it is not clear if they contracted it at the store but walmart is hiring a company to clean and sanitize the store where the two men worked in limiting the number of shoppers allowed

s&p 500 ended last week with him lower market values and so you had companies like cap, kohl's, nordstrom, capri, haynes, getting hit hard. so if they go, if they follow the precedent set by macy's, they could potentially be getting kicked out of the s&p 500. just an incredible move. one of the big questions is it the fed would start lending to junk-bond companies like macy's. >> one thing that you noted a lot in your research is what is systemic, right? who is providing the jobs and what classifies something as too big to fail, if you will. a lot of these retailers are providing a lot of these job, but junk bonds as we know are as been by the fed right now anything that will be bailed out anytime soon. oil, quickly, the meeting moved. does it give anyone a more or less hope? down and we had that tweet from the president who said that he thought saudi arabia and russia, these other opec members might get together to cut output by 10 million barrels a day or so. we were starting to hear some confirmation of that on friday. we came in this morning to some other news from saudi arabia, russi

makers like also , nordstrom gap, up 70%. a pretty strong day across the board in the s&p 500's., the dollar index is stronger. around now, we are at 100 812 on the euro. even as we know, boris johnson continues to be hospitalized with no more details given. the vix is more muted at 44. the 10 year yield at 55 basis points. once again, stay tuned for balance of power. this is bloomberg. ♪ david: from new york to our tv and radio audience, welcome to "balance of power." stocks surging today on word that the death toll from the coronavirus is easy and some of the hardest hit spots here you joining us now is taylor riggs. dayor: what a difference a makes, right? taking a look at the s&p 500, we are up. we saw similar gains in the s&p 500 one week ago monday, but for lossesndays were posting . you hadn't seen gains since march 2. today looks like the second straight monday where we are seeing gains. across assets let's look at what that means for the other indices. vix, theok at the lowest handle since march 6. you are getting more funding pressure then is being released here as the

also department stores, nordstrom and kohl's are up 8% and 9% apiece.agnostics up as we are seeing a bounce today and it is holding through the morning session. guy: absolutely. let's get back to the banks. a story inrtainly your. deutsche bank out with numbers earlier, beating first quarter profit expectations. the german lender still has words of caution. results will come out on wednesday. bloomberg's german banking reporter joining us now from frankfurt. deutsche is numbers generally look good. here is my concern about the numbers. unlike the u.s. banks, provisioning looks reasonably like. 500 million euros for bad loans. that figure compared to what we saw out of the states looks low. how should i read this? which side of the atlantic is right in terms of its approach to provision? steve: that is a very important question to ask. it is a question people will be asking when deutsche bank reports full details on wednesday. people will be asking about the credit portfolio, the quality, and so on, and whether the assumptions underlying this are justifi

look at nordstrom down 9%, macy's off 7%, dillard's down more than that we're just getting news from jcpenney as a retailer that has been in trouble for some time. they are not going to make a $12 million interest payment due today. they say as a part of this agreement, there is a 30-day grace period and they are electing to tap into the grace period as they look into other strategic alternatives we'll see what that means, but we know that jcpenney is a name last hour we were talking about as one that might be ready to file for bankruptcy. back to you guys >> i'm wondering who else is in trouble and how many weeks or months the retail industry can survive and deal with 50% sales declines in a matter of a few weeks. that's pretty brutal we've seen furloughs at these companies. what are the cash positions like, and are they getting any help with loans? >> that's such a great point, sara we'll drill into this a little more tomorrow, but there are a number of retailers that are not far from jcpenney's financial conditions they were already strained going into this covid crisis so they ma

stinson kron 4 news, thanks a lot that's the situation at neiman marcus and we're waiting to see how nordstromnd macy's and bloomingdale's fair. >>and get through this whole thing wells fargo facing a class action lawsuit, a company bas the compani face in california. and is this mpany claims that the bank performed unfr actions against some smaller businesses that's sought financl relief from the program. money from that on overnment loan program ran out last week and the lawst says wells fargo. prioritize the companies have requested large loans. even though the government id that the applications would be on a first come first serve basis. accordingo the lawsuit this would result in wells fargo getting more ney and processg fees. right now small businesses across the country are waiting for a deal on more money to help them get through the coronavirus the treasury secretary says a de is close to beg made. fast food chain shack jeh shake chad got their moy a $10 million loan under that small says now they're going to get back they sathey were eligible for the money because that day they had

more than 250,000 stores including macy's, nordstrom and nike have been shuttered since the middle of last month. consumer spending makes up about two thirds of the u.s. economy. the drop in retail sales sparked on wall street, dow lost 445 points, nasdaq dropped 122 and that s&p fell 62 points. energy shares also fell as oil prices reach an 18 year low.>>> while individuals are receiving their stimulus checks, many businesses still have not seen a dime. new at 5:30, local restaurants are working to keep their doors open while waiting for assistance. >>> also ahead, changes are coming to transit in order to keep passengers safe, what you need to know before you hop on the bus. >>> first, a man runs up to a house, steals a surveillance camera and slashes the homeowners tires. why police say they were not able to arrest the suspect.>>> fairfield made at 85 degrees today, warm inland, cooler on the coast, with definite changes coming this weekend. frustrated that clean clothes you want to wear always seem to need an iron? try bounce wrinkle guard dryer sheets. the bounce wrinkle guard sh

you can see how small that stock it nordstrom, chico's, gap, all flies here debate about how we bouncedff the lows remember what happened on the march 23rd lows here, from those lows, from the 52-week lows, energy is up 40% utilities up 28% industrials up reits up consumer staples are lagging, we have noted how the krogers of the world and the campbell soups are down the last few days or flattish so that's a big change here. you can see the flip-flop of how things are going the big debate on the street is what are we in i call it the market in the middle we have a bull market on february 19th. that was the peak. then we went to a bear market on the bottom on march 23rd, we were down almost 35% in the s&p 500. and now where are we what is this is this a bull market? we are 20% off the lows. i mentioned this yesterday i got snarky remarks bob, it's three hours old, you can't call it a bull market. it's ridiculous. nobody ever invented these 10%, 20% correction and bull market and bear market rules, they were created over the last 30 years the fact is we're 20% off the lows i don't know pr

hire people if you're nordstrom?ember, they were trying to buy it for 8 billion it's now 3 billion maybe they should only be rack i don't know what should macy's do? i don't know what is -- nvidia is hiring. they have tremendous businesses, they're growth maybe that's what will happen. great growth companies and then the other ones that are just -- their demise is being accelerated by covid how can gary kelly not trim his work force >> there's the dow 24,500 at the big board, kevin fitsgibbons, chief security officer. thisdiscussion of guidance doe remind you of merck versus pfizer pfizer which did affirm, merck which pulled, but did cut the guidance >> that was something. merck actually was -- was just bad. i was surprised. here they have these numbers for keytruda and they beat my estimate, that's their key lung cancer drug. and then a downbeat. that should have been one where they said we don't know. but they cut that made me feel like, wow, i have to go over this again and again. suspend buyback. lower because of

gap down 59% nordstrom down 50% they should be that's the condition of their business those stocks don't matter. they don't move the chains they're not big move it's contributed 23% of the total return of the stock market over the last month. health care even more pronounced it's 16% of market cap but it's contributed 27% of the return of the s&p over the last month. that two sectors the two highest weighted sectors by market cap contributing more than half of performance of the s&p. people look at the last month. they say, it's a v it doesn't make sense. well, unfortunately, stocks like hertz, which now trades like a penny stock could quadruple and it wouldn't affect what the s&p does we have got to stop conflating the condition of the economy on a daily, weekly or monthly basis. right now, chamath is right. >> what happens if you get any sort of weakness or pull back in stocks you have mentioned that have been towing the car along that would be a problem for the market you have the high weighted sector pulling the weight. the slippest blip in that is potential problem for this group. >

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jcpenney, macy's, nordstrom also in danger of closing for good. the biggest concern from coronavirus obvious lib our health. but your financial health is also a major worry. here is nbc's chris clackum. >>> with so many buzzes closed because of covid-19, consumer spending has taken a nosedive. >> even people that are still working and in a position spend are reluctant to do so, simply because they really don't know what's around the corner. >> greg mcbride at bankrate says they survey 2500 americans about spending and investing during the crisis, and found over half dialing back on spending, but surprisingly, staying the course on investing. >> despite a 30% drop in the stock market, about two-thirds of those that have investment accounts did not do anything with their stocks-based investments. >> reporter: many still worry, however, what all this economic upheaval is doing to their credit rating. no need for that, though, according to rod griffin at ex-peerian. >> don't have to worry about unemployment affecting your credit history or credit scor

pvh corp., kohl's and nordstrom all up between 10% and 14% and then one other space to watch, home improvement take a look at these homebuilders like pulte group up lowe's, will people spend more to improve their homes that's up 3%, 4% mohawk industries, flooring products, take a look at the financials, homebuilders stocks and the places of the market keying in on this economic optimism narrative to see if it lasts. >> dom, thank you. >>> in fact, the s&p 500 is now just 15% beneath the all-time high and we're up 30% from the lows a month ago despite a pandemic that cost 26 million jobs is the stock market too optimistic mike san tolly has a look at the correlation. >> there's a conspicuous disconnect on the surface at least. the s&p down 15% we traded at the same level several months ago and doesn't seem as if a lot of pain given a gdp print more than 20% down for the quarter but i think it depends on how the market got to this level it is not led by the areas that by the way dom mentioning leading today, the areas that's pricing in a very quick and strong rebound in the economy. as we all kn

i'm live in san francisco sarah stinson on 4 news now we're going to be looking next at you know nordstromnd macy'sbloomingdale's and the resof the department stores. >>if they're able to weather this. thanks a lot sara james 5.34 ishe time developing news now wells fargo facing a class action lawsuit amid this pandemic. >>a company based in californiaisclaiming that the back performed unfair actions against some smaller businesses that sought financial relief from the billion paycheck protection program. money from the government loan program ra out last week and according to is lawsuit wells rgo prioritize the companies that requested large loans, even thouh the government said that the ppp would be paid out on a first come first serve basis. according to the lawsuit this move would result in wells fargo getting more money in processing fees. that iswhat the people buy a lawsuitlaim was wl so wells fargs motivation right the country are waiting for a deal on more money to help them get through this crisis easury secretary steve mnuchin says a deal is close to being made there been some h

capri holdings, kohl's, nordstrom. 25% or more in some cases. huge rallies and pushing the markets up more than 5% today and not oil. oil itself is down about 6% and it's on track to break a two-day win streak this is coming despite report that is a deal might be closer for russia and the saudis. lets's bring in brian sullivan to explain, brian, what is going on in the oil market these days. >> i hope i can. because about 600 things going on, kelly. so the saudi/russia deal that the president referred to, 10 million barrels a day, the reality is those 2 countries alone are not going to go to 10 million barrels. almost impossible if not impossible any deal would have to include everybody. supposed to be, kelly, an opec plus plus virtual meeting today. we know that got moved my sources tell me likely to thursday there's reports about possible g20 action on friday the president now talking about potential tariffs on imported oil, as well there is a ton of things that are going on can opec get together on thursday if they do, can they agree on anyth

nordstrom was $40 a month ago. now a $12 stock. this is a simply catastrophic month overall for the retailers. any good news here it is a little calmer. sounds unbelievable with the market down 200 or 300 here. we were moving in 2% and 3% swings in the week today, a week and a half ago we were 5%, 6%, 7% intraday swings and the vix below 50 and haven't seen that more than a month and a little bit of good news and hopefully things calm down a little bit more. market will flatten out sometime maybe next week. kelly, back to you. >> bob, we have seen this pattern for the last couple of months with coronavirus where people don't want to be long and exposed to the market into the weekend. do you think that's starting to -- people are getting more comfortable with the numbers as bad as they are? we have projections and kind of know what we expect. do you think that's changed at all or still pretty risky? >> on the terrible numbers, we were off by magnitude on the jobs number this morning and the market actually went up on this. part of t

>>from the market caps of jc penney macy's nordstrom and kohl's just since the start of 2020. >>and don't forget to small businesses ruggling really hard and now. a group of them are fssuing wellfargo, it's a class actionuit. the company behind the lawsuit here in califoia clms that the bank performed what they say were unfair actions against soe smaller businesses that needed money from the paycheck protection program. money from the government loan program was. well ran out last week an according to this lawsuit because wells fargo prioritized the company's request of the large loan amounts over those were looking for smaller amounts of money. even though the federal government said that people would be paid out on a first come first serve basis,so it was supposed to be in order of wh you showeup in line. the wsuit says that was fargo did this in order get higher processing fees that's the claim we'll be tracking meanwhile fast food chain shake shack is returning the $10 llion it got from the company's ceo. they were o eligib for the money because the program said that resta

i think there are structural problems with macy's and kohl's and nordstrom. china is coming back and the stock is down from 150 and it got to 40. that to me is like it has a franchise that is worth something more than 40, in my mind it's going to be volatile. it was very painful to own it on the way down i just kept on slowly picking away because i do think in a year's time it will be higher. you can't paint the same brush with every single discretionary company. that's why i was buying coke that's why i added mcdonalds that's why i added to starbucks. all these companies, great company, great market share, awesome balance sheet and some have good dividend yields and they got thrown away with all these other more speculative names. you own some wins of the world and you just stay disciplined and stay calm. sf >> the dow is gain of 720 points tom, thanks for being here >> great to see you. >> is this legit >> yes i'd say the way your viewers might want to question this is when did rallies fail in '09, o 2, and '87 that's how much of a loss did they recover bef

look at nordstrom. are great american companies, and they are having a real hard time >>> let's go to jim in new hampshire. jim. >> caller: booyah, jim >> booyah. >> caller: hey, last week dave and buster had a market offering >> right >> caller: i wonder what your play is on play. >> you know, being in the restaurant business myself, it is just too hard right now to try to figure out whether the profitability isn't going to be crimped big time by both stay at home and also social distancing. so i'm going to say no >>> and that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade ♪ ♪ ♪ ♪ ♪ since 1926, nationwide we've been there in person, during trying times. today, being on your side means staying home... "nationwide office of customer advocacy." ...but we can still support you and the heroes who are with you. we're giving refunds on auto insurance premiums, assisting customers with financial hardships, and our foun

clock may be ticking for macy's macy's has four months left before it runs out of cash while kohl's, nordstrom, j.c. penney may only have a few months more than that before they're tapped out. guy, this seems like a race against time for the retailers, but if we flip the switch and we open tomorrow would that change your mind? >> in terms of macy's? no because the trajectory for macy's prior to this coronavirus was this direction now maybe we got here faster obviously, we probably did, but this just sort of sped up the process, unfortunately so no. $5 billion for macy's is not an insignificant number at all. that's a staggering number the only reason i think to buy macy's here is you're hoping for a short covering rally into earnings in the beginning of may. short of that, i don't see any compelling reason to go plowing into letter m at these levels. >> the market capitalization of macy's is -- is a fraction of that, right, tim a fraction of $5 million at this point. >> yeah. it's 1.6 billion, i think, something like that today. i think if you look at the sum of the parts and you start to weig

that have also done amazingly well this week are names that have futures that seem endangered, nordstromskohl's, i wonder your take on those and conversely, the stay at home names that have been rallying for a month now. how much danger on the down side if, in fact, we get a return to semi-normal life, how much is embedded in those multiples? >> here's a stay-at-home name we ended up buying in the first quarter. constellation brands beer company, key brands corona modello, they have the global pandemic with the key name as one of their brands p. but looking at the recent results, they seem to be holding up well. we think we're buying this looking at a couple years at around 10 times normalized earning. they're still growing their beer volumes, 8 to 10 times the rate of the beer industry at large. it's a terrific franchise, wile again it's a more stable demand structure we think the market got ahead of itself selling it off because of covid >> i realize they haven't been trading exactly lock step but when you look at the moves that have taken place, the correlation between equities and cru

likes to say what a great move we've had, some of the stocks up 40% or so, but let me point out nordstrom was $40 four or five weeks ago and now with the rally, it's half of what it was and we consider that a victory. bear this in mind. the daily charts do not do justice with what's going on the same with the travel stocks, carnival and royal caribbean, they're all up nicely. caribbean was $110 five weeks ago. $110 it's $36 we've talked about an enormous rally. look at these charts ona three-month basis, it doesn't make sense at all to look on any kind of weekly basis the same with the reits, talking about kimco, $18 six weeks ago and now had this enormous multiday rally, sorry, simon property group, had this enormous rally and the stocks have been more than cut in half essentially. kimco was 18 five or six weeks ago. just keep in mind the longer term perspective curious dividend news announcements. at&t took the step of saying we're going to pay the dividend. normally they don't make those announcements but this is the phone company, of course, they're going to pay the dvds, but they ann

recently and looking at those canceling the dividend or spending it, carnival, cdarden, ford, hilton nordstrom, delta wall street with lists of companies out there with dramatic price drops, big increases in the dividends yields and perhaps most importantly big cash flow problems because that's the most important thing. here's companies with high dividend rates that have rocketed in the last few weeks kohl's at nearly 15% halliburton 13%. ethan allen. host hotels. american airlines. notice something about this. they tend to cluster in a particular sub sector so you are seeing retailers, energy, hotel stocks, airline stocks, those are the ones that are seeing the dividend yields rocket up the most and might be the most at a risk of a dividend cut most of the time estimates of 10% or 15% decline in dividends paid this year and concentrated in particular sectors and i they little l bit of a good sign for the overall market and not seeing mass dividend cuts going on and certain sectors for sure. back to you. >> thanks. >>> from dif denld cuts to tech, amazon and netflix leading some traders to bel

tough on retailers i don't know which lives and which died nordstrom sold 8.75% coupon. the fed's action today, i wasn't concerned that was too risky. now i don't know we have tons of companies in great shape two months ago this pandemic threatened to chor crush them it wasn't their fault. it wasn't that they were bad operators. this thing was crazy in the end the fed didn't want to be blamed for causing a depression j. powell understands the mistakes the fed made during the financial crisis in 2007 when the fed was buying just treasuries i asked chief ben bernanke could have taken action sooner powell learned the lesson. he's not making the same mistakes bernanke did. secretary mnuchin doesn't want to go down in history as the guy who presided over the depression either he's making sure small and medium size businesses can get grants and loans that will be forgiven as long as they don't layoff their employees this payroll protection is under fire because it's misy there have been delays it's far from perfect. i say who cares. this is a huge incredibly ambitious program.