Transcripts For CNBC Closing Bell 20240713

There was a hiccup or real problem with finalizing the the United States now has more coronavirus cases than any other country in the world contract he wrote as usual, with this quickly approachi inin ining 10 general motor, things just never seem to work out they said they were going to give us 40,000 much needed ventilators very quickly boeing said that coming up in now they are saying it will only be 6,000 in late april and they want top dollar always a mess with mary b. The show, well speak to slack ceo about the surge in working being mary barra, ceo of general remotely how his company may integrate with a major competitor to make motors and invoke p the defense production act working from home easier it has been one of the rare basically, he can sign it. Winners in this overall market sell off gm and vent tech within an hour lets focus in on the big stories we are watching at this hour or two of that tweet going out kayla has the latest on the announce d they have a deal rescue package mike tracking todays pullback these ventilators will be built in the markets phil lebeau is covering the at a plant in kokomo, indiana. It will be 11,000 ua workers automakers for us as president putting them together. Trump slams phil, first to production starts in the next you. Well, the white house just put out an announcement. Seven to 14 days and they think theyll likely be cranking up to the president is expected sign 50 now, out in a month as for mary barra, she has said the act around 4 00 p. M. In a very little except for shes formal signing ceremony at the white house. This comes after bipartisan happy to be working with vent tech and happy to be working on leaders on capitol hill both in the house and the senate signed a project where they are providing ventilators for people the bill today officially in need, but they did not enrolling it into the record as respond directly to the president s tweet. Finally, gm is also making the largest stimulus package surgical masks at its plant in ever passed in American History. Theres House Speaker nancy pelosi just last hour. Warren, michigan now we worry about what comes so guys, this is not the first next and how exactly these funds time probably not the last time will flow to main street and to that gm executive or overall is the businesses that are hardest going to be targeted by the hit by this crisis president. But again, they do have this there are a few upcoming dates in april that are in focus as we deal in place with vent eck the final deal, that still needs to think about how this stimulus be worked out, but thats will be delivered and how a separate from gm and vent tech potential phase four would factor in. Saying theyre going to starlet on april 1st, you have rent and Start Building these do you think if the defense bills due for a lot of people. Production act got invoked it mortgage, rent, credit cards, a whole host of things would make much difference or do on april 12th, thats what you think these companies are President Trump is targeting for already in war like footing in doing all they can any way even a partial economic i think theyre all doing reopening. Earlier today, the Vice President said thats an what they can. Aspirational date, but one we what they believe as quickly as possible thats certainly the case with have on the cal car. The treasury secretary said General Motors as well as the within three weeks of passage, ford, chrysler is working on making face shields so theyre those direct Cash Payments all moving very quickly to ramp should have been deposited so up production. That brings us to april 16th the issue comes down to what then the 20th is when the senate contracts are signed between return returns from its recess and even if theres more funding fema and these companies in terms of when theyre developing needed, its not t expected and putting these products out there. Thats the issue and a government red tape issue that there would be a vote before then we have heard from many investor the worse could get better but the administration is is focused is separate from whether or not on this package. This 2 trillion and getting companies are saying okay, were ready to go. Phil lebeau, thanks so much this stimulus into the hand of the people who need it most then going from there we are down by 1. 4 or so on the back to you. S p. Still up 12. 5 for the week. And kayla, how long if this improving as we approach the current level of lockdown persists, how long is this bill close. Near the session highs, only meant to paper over the cracks down 420 points now on the dow still ahead, former wells fargo ceo says he wants to see healthy for and i know we had a couple of individual lawmakers try and workers under 55 return to work slow the process over the course by the end of next month even if they risk getting sick of this week coming up next, dont go do we expect if another was needed it would arrive and that anywhere lawmakers would deliver it two answers first, how much is needed. Thats going to be a case by case, county by county basis here in d. C. , d. C. Government has suggested that people stay home until april 24th. And then well reassess after that and every other municipality has its own guidelines there the general thought is that this money would last for anywhere from eight to 16 weeks the unemployment provisions last for four months and other pieces of this puzzle last for about your brain is an amazing thing. Eight weeks so thats the but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Operating asunls by many in the administration thankfully, the breakthrough in prevagen helps your brain it depeptinds on how quickly th money gets used up then figuring and actually improves memory. The secret is an ingredient originally discovered. Out what the math looks like a after that in jellyfish. If theres a need for a phase four and five, i think lawmakers in Clinical Trials, prevagen has been shown will assess from there to improve shortterm memory. There are many who want to make prevagen. Healthier brain. Better life. Fixes in a future pack aungage two things that didnt make it into this existing package, for edward jones is itswell aware of that. Et. One, senators from washington which is why were ready to listen. And alaska want to make sure the and ready to help you find opportunity. Cruise industry will be assisted things like that you could see pop up those could be more contentious. So. Lets talk. Kayla, thank you so much for edward jones. Its time for investing to feel individual. That as we approach the president signing that bill at 4 00 p. M we are improving sentiment in the markets. Close to the session high, now down less than 500 points on dow, but still of course declining today and therefore giving back some of the rally. Mike is having a look at how the markets stacked up this week yeah, i would characterize today azris relatively modest fm the spillback. Doesnt really change the net effect of the week, which is probably to the benefit of the bulls more than that or at least kind of an end to this sort of desperate feedback loop on monday up about 15 from there. Look at this oneyear chart of the s p. It sort of shows the balance has gotten the index into a little bit of a no mans land the its equivocal as to whether you say this is a reflex bounce or something more. Youre in an impossible bottoming process, but i put that upper line there, 2570 or so 2480 so all this bounce has done is kind of kept us in that zone between that one days move. So i think until you get to 2700, its still going to be a who me situation on the other hand, if the market holds around here through the week, there are a lot of folks saying this whole weeks progress is going to represent something that looks like a fairly plausible bottom on the chart for various technical reasons. Above about 2500 so theres no verdict yet, but it shows you theres been a little benefit also one final thing is its probably good the market is at least somewhat calmed down these huge outside moves, we got about 46 minutes left whether up or down, still represent a little instability to go and heres a check on the that make the market tough to markets. Dow rallying a little bit. Navigate ooempb if it is taking gains in big gulps there a little less than 2 . I just noticed the two best s p, off about 1. 5 . Performing sectors are utilities and industrials, which you dont nasdaq, one and three quarters and russell 2000, down two and a quarter percent. Some individual market movers. Usually see moving in the same directions its the low rates of utilities then industrials, which and a American Airlines lower after better announcing additional flight suspensions because of the coronavirus outbreak the company will reduce domestic capacity by up to 70 in april and 80 in may that company not looking for a quick snapback it will suspend International Capacity by up to 90 in april and in may well despite todays lower move, the stock market is higher for the week excuse me, American Airlines is up higher by the week by 36 shares of gap, pulling forecast, announcing plans to drawdown 500 million of a credit line because of the coronavirus outbreak moodys downgrading the stocks create rate iing to junk becausf the yoet youth breaks impact. Shares are lower by 7 a 7. 85 thanks so much. Now earlier today, i spoke to Vice President mike pence and he discussed the president s planned timeline to get americans back to work there are areas of the country as dr. Deborah birx said yesterday at our press briefing where theres frankly very little outbreak of the coronavirus and as the president told governors in a letter yesterday, were going to be examining that data on a county by county basis and in the das s ahead, were going to be giving guidance specifically to different regions of the country about how is as the president says we might be able to open up the country and get america back to work just as soon as we responsibly can. Join iing us now by phone, former wells fargo ceo, Dick Kovacevich great to have you with us as always this was a topic about when america should go back to work that came up in an interview you did with bloomberg a couple of days ago some of the comments have got a lot of coverage since then even the Vice President there said only, people will only go back to work based on when the data suggests them being able to go back to work in a a healthy, safe way yet this week, you said well gradually bring these people back to see what happens some will get sick some may even die. I dont know i wondered if you wanted to clarify any of those comments. Do you think its worth people going back to work even if theres a risk they could get sick well i was misquoted in that interview. There was a lot of context that was omitted. What i think is that we do need to get people back to work as soon as it is safe to do so. This is not just for economic reasons. Those of us who are in San Francisco and in lockdown now for almost two weeks, its really not a healthy and enjoyable experience, either physically, mentally or psychologically. It is devastating economically especially for low income workers. So if i were the president , i would be taking the advice of dr. Fauci, who appears tor a very knowledgeable and experienced and balanced professional about when its right to go back to work i think actually San Francisco and the bay area is a good test case we dont know a lot about the virus. But we do know that there have been countries around the world who went into very serious lockdown just like the bay area has done and after about a month or so, it appears that you see a bend in the curve and the virus appears to be under somewhat control. We dont know what happens until they go back to work again that was a point i was trying to make there is risk of course when ever you go back to work but within a month, china, south korea, singapore and taiwan have started to put their people back to work. I think the bay area if not the first, was certainly one of the first to put the lockdown down and that was in the middle of march. March 15th so the next two to four weeks, we will either see the bend in the curve or we are not. If we see the bend in the curve, then i think the next step is to do three things. To continue to lockdown to the most vulnerable part of the population, which everyone seems to agree is people over 60 years of old, years old or so. Especially those who have other difficulties medical difficulties secondly, anybody who is sick or gets sick has to self quarantine themselves, when f that occurs then thirdly, we should take those that seems to when they get the virus, that its more like just flu experience and thats the vast majority of people who are healthy and under the age of 55 or so. I think they should be allowed to go back to work if they want to go back to work you dont force them to go back to work if theyre concerned about it, they shouldnt but if they want to go back to work, but we do it in a very conservative way we should still have six feet between individuals. We should have restaurants that have tables that are six feet away again, iffin gets sick, they have to self quarantine and well see if indeed again, this is when we think that the curve or not think, we know the curve has bent and see what kind of response we get. If it seems to be going well, we continue to put, allow more people to come back, if it isnt, you stop again and go back into lockdown thats what i basically said in the interview. It didnt come out that way. Well, glad that you got to clarify. You said a lot there first on the flu youre not the only one that has made this comparison, but the truth is and we showed the mortality rate, this is at least ten types moimes more deadly th flu and a lot more contagious and all the doctors are saying that so its hard to make that comparison while San Francisco may be flattening, the u. S. As a whole is not bending or flattening the curve and the problem is you have places like new york where if you start to tell people to go back to work before the virus has peaked, the doctors say and theres new research from northwestern on this, that could come at the expense of peoples lives. I dont think you heard me. I said that you dont go back to work until the curve is bent and then use San Francisco or some other area. Im not saying the whole nation goes back to work. Im saying we have a right, right, but the problem is, even if San Francisco does, its hard, look, if one place, you cant isolate San Francisco. We have all the states are going to get it. No, i dont think thats correct. These other countries, they have gone to, they have Gone National when indeed the areas have been under control. Were seeing that. I think youre also wrong about the mortality rate perhaps. A bunch of stanford professors said the reason the mortality rate and i dont know what it is i dont think anyone knows but they came out and said the reason it looks high is because we have not correctly determined how many people had the virus. They think it could be under 1 . I dont know the answer. What i do know is i think we have to use data, analytics and what is happening and we have to see what happens as we move from a total isolation into another arena. I think San Francisco would be another example and if it doesnt work in San Francisco, then we know its not going to work some place else but im not saying new york should do it youve got to bend the curve before you do any of this. Its an important debate and difficult one with no clear answers at this moment a different topic. And get his advice on how we should go back to work and i believe Something Like this would be his suggestion but i dont know i agree with you on that. Dr. Fauci, everyone likes to trust. I just want to ask you about bank stocks, which we can certainly come to you as a clear expert on. Am i right in saying that you like current ceo of wells fargo, have been buying wells fargo stock in the last couple of weeks . And on tther bank stocks as weli your case . Again, none of us know whats going to happen with the economy. But certainly, the banks are, pe ratios are low dividends, yields are good theyre in great shape from a capital standpoint and one of the areas were having trouble with is loans and looks like were making lots of loans now i think theyre at a bottom and they would be one of many areas of that the market is today that if and when you decide to go in the market, it should certainly include banks. As always, a pleasure thanks for joining us. My pleasure all right weve got just about 36 minutes left of trade. And weve seen an improvement in the markets here dow down only 325 points. I say only because at the lows, we were down 1,083 s p 500, down 1 still looking at double digit percentage gains for the week. Up next, unintended consequences Clinical Trials for non coronavirus drugs are getting delayed amid the ongoing athaemic here. Wh tts going to mean for the pharma industry, next. Why do things that are supposed to make life easier sometimes feel so complicated . Ibm watson is different. Its ai that works on any cloud to help your business tackle problems. From building smarter cars to predicting sales trends to improving customer service. Without slowing you down. 32 minutes left of trade the coronavirus is having a somewhat unexpected impact on Clinical Trials for new medic e medicines that have nothing to do with covid19 meg . Just another example of the massive disruptions were seeing because of the covid19 pandemic basically every company saying theyre going to see some impact whether theyre delaying the start, pausing enrollment. This is a list of companies that have put out press releases to that effect or confirmed directly to us that theyre seeing those kinds of potential delays in enrollment merck, pfizer, Bristol Myers eli lily ver tech and a smaller Bio Tech Company just yesterday, they put out u one of the more detailed outlooks ive seen on this saying essentially theyre estimating about a three month delay at least of enrollment and completion in clinical studies a company that works on gene therapies. Theyre saying an approved drug in earp will see a delay because it will take time to get them set up i spoke with the ceo today and hes saying these estimate rs the best guest right now we had the vertex keceo on they want to protect patients from any expo hur to covid19. Second, they say its important to Optimize Health care resources around the world so they can be focusing on solve ing that problem and thirdlily, they need to maintain the integrity of their Clinical Trials so just another example of some of the effects were going to be seeing for some time because of this pandemic its hard to grasp how long this will delay any new medicines, but something were going to have to watch closely for a while, guys. Back to you. Yeah. I know, its a shame, meg. I guess that the Silver Lining here is that a lot of these companies are focusing their efforts and resources on covid19 treatments. Where do we stand on Clinical Trials we need to get some data out there. We really do. And the good news is this is moving incredibly quickly. We are going to siedee data next month, certainly from gillead on remdesivir and were going to see data in april from region rons trials of the existing Rheumatoid Arthritis drugs that are in testing in new york and other places for the most severe pashlts with covid19. So all these are ongoing were hoping to see data in weeks and months on some ofthe longer term projects and obviously everybodys very hope ful that data is going to be positive thanks so much for that breaking news on united. Phil has got it for us hi, phil we have a note from United Airlines theyve sent out a a couple of them one from the ceo along with the president in which they basically are saying theyre appreciative of Congress Passing the Airline Relief portion of this bill that is providing about 2 trillion in aid of which 50 billion has been earmarked to help airlines both have of it in the form of loans, direct cash grants and the other half in loans. A couple of interesting notes here one, united says because of this bill passing, it will not have furloughs until at least september 30th so all the employees at united, 100,000 of them, locked in through september 30th no pay cuts as well. However, keep in mind that load factors continue to fall theyre still looking for a bottom how bad is it . Theyre in the tens to, teens, tens to 20s or low Single Digits low Single Digits in terms of number of people filling a plane then youve got united planning deeper capacity cuts in may and june remember, theyre already down for april. 52 of the schedule has been eliminated its going to go further in may and june what does this mean . If this doesnt improve, if the economy and more people arent flying come september, youre likely to see united and other airlines potentially become much Smaller Airlines but for now, all of those employees are locked in. There will be no furloughs before september 30th. Phil, how does that compare other major carriers in terms of same thing. Same thing and that was the commitment that they all made to lawmakers in washington. You give us this relief, we can guarantee you that were going to get at least through the summers schedule without any job cuts and the hope here in the industry is that you start the see demand pick up again but make no mistake, when youve got a load factor of 8 , 9 , 10 , youre going to have to cut that airline but for now, theyre committing no furloughs, no pay cuts through september 30th phil, thanks so much. I guess if youre looking for a Silver Lining, good leg room for those 8 of people filling those planes or not filling the planes as it might be thank you. We are down 1. 2 on the s p 500. Briefly we were down less than 1 with just 27 minutes left of the session. Upn for the week coming up, slack seeing a big jump in use urs. Well speak with the ceo about how hes keeping workers connected. Bonds slipping today yielding around 0. 7 were back in a couple of minutes minutes. Dont go anywhere. Life isnt a straight line. And sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. And sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. Welcome back about 24 minutes left to go as the dow rallies a bit and slides back a bit here are three things driving the action the house of representatives has officially p lly patsz passed t relief bill. The president expected to sign it just minutes from now at the white house. United states now has more coronavirus cases than any other country in the world quickly approaching 100,000. Boeing, the big e loser in the dow today after secretary mnuchin said the company has not, not requested government help time now for help, excuse me time now for a coronavirus u update with sue. Hello, everybody. Heres where we are right now. French authorities report another 299 deaths from the virus since yesterday. Bringing that countrys total to nearly 2,000 cases are up 13 to almost 33,000 as testing in the country expands. The head of the World Health Organization is announcing a new trial of four drugs or drug combinations meant to fight the coronavirus pandemic the first patients are expected to be enrolled soon in spain and in norway. This is a historic trial which will dramatically cut the time needed to generate robust evidence about what drugs work more than 45 countries are contributing to the trial and more have expressed interest and here at home, Nursing Homes across the country are particularly vulnerable to coronavirus. 55 Nursing Homes in new jersey reporting virus cases and in virginia, the canterbury ra Habilitation Center is facing a critical staff shortage. Four patients there have died and many more patients and staff have become ill. Theyre also short of personal protective equipment as always, you can get more on the coronavirus by heading to cnbc. Com and sara, unfortunately i think thats a story i think were going to hear a lot more of for the Nursing Homes the very vulnerable. Back to you. Thank you 21 minutes or so before the chosing bell heres where we stand. Stocks continue to climb back from the worst levels of the session. If youre bullish, some encouraging action the s p is down less than 2 a much smaller move than weve seep in recent sessions giving it a gain of at least 12. 5 for the week coming up, the house passing an historic relief bapackage but carly forma says theres a big part of it she opposes shell join us, next and you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. At t has connected us every day for over 100 years. And were here for you especially now, doing Everything Possible to keep you connected. Through the resilience of our network and people. We can keep learning, keep sharing, keep watching, and most of all, keep together. Its the job weve always done. It is the job we will always do. Yourbut as you get older,thing. It naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In Clinical Trials, prevagen has been shown to improve shortterm memory. Prevagen. Healthier brain. Better life. We segetting to patientscines in record time. At emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Now the dow down almost 700. 3 decline here. Still significant gains for the week but getting volatile here as we enter the final 20 minutes or so of trade the Health Care Distributor stocks are down this year. Some of them more than the market however the outperforming the Broader Market lately so which are in best position for the uncertainty that lies ahead . Joining us by phone is lisa gill topranked analyst in this space according to institutional investor, lisa, thanks for phoning in so why have the stocks underperformed like a cvs for instance and why do you think that changes yes, sure thanks for having me so i think if you look at cvs, they have a number of different businesses within the umbrella of cvs the retail, the pbm as well as the Health Benefits business so if we think about the complexity of that business and we think about you know, some of the trends in the marketplace, you have seen cvs underperform and the other component is that they have a high amount of leverage theyre about four and a half times levered aingd and i think in the current environment, theres a little nervousness we still believe theres strong longterm outlook for cvs as we think about cost, quality, convenience, we believe youre going to see the shift in health care once we get past this p pandemic where the consume rer is really looking for the lowest cost and the most convenient location to get the highest Quality Services and so thats why we continue to like cvs and believe here you know present a buying opportunity in the stock. From the experts youve been speaking to, what do you feel like the simply chain for drugs has been like during this crisis and should we be commending the pharmacies and others for makin sure they still get prescription drugs to people that need them during this pandemic absolutely. You look at this, theres a couple of different dynamics one, if you look at data, which was collect data on what happens with pharmaceutical sale, you see there has been a spike in the last few weeks for drugs coming through the pharmacy so its about twice what it was a year ago and i think that many people are stocking up on a 90 day supply rath eer than a 30 day supply anticipating theyre going b to be in their home. O so fuf pharmacies meet thag demand but on the other side when you think about the actual supply of product and this is where the drug distributors come in, youre saying theres six to 12 months supply on the branded side of the pharmaceutical and two months on the side of the generic. There was concern when we first learned about coronavirus about api coming out of china and what weve learned is that these distributors are carrying two to six months of inventory. Towards the upper end of the six months because generics are so important. Recall that 55 to 60 of their profit comes from generics so theyre going to carry a good amount of product in this channel and so they feel that theyre covered you know at least through the summer as far as having Product Available for people in the marketplace. From jpmorgan lisa, thanks so much for joining us this is the last commercial were going to take before we go into the close up next, well bring you uninterrupted vege ocoraf the final minutes of trade when we take you inside the market zone. Why do things that are supposed to make life easier sometimes feel so complicated . Ibm watson is different. Its ai that works on any cloud to help your business tackle problems. From building smarter cars to predicting sales trends to improving customer service. Without slowing you down. Edward jones is itswell aware of that. Et. Which is why were ready to listen. And ready to help you find opportunity. So. Lets talk. Edward jones. Its time for investing to feel individual. But when allergies attack,f any the excitement fades. Allegra helps you say yes with the fastest nondrowsy allergy relief and turning a half hearted yes, into an all in yes. Allegra. Live your life, not your allergies. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. 11 minutes left of trade down more than 700 points on the dow. Commercial free coverage of all the action going into the close. Mike is here to break down these crucial moments of the trading day. Stoed, weve got scott wren from wells fargo. The Broader Markets, Omega Family Office chairman and leon cooperman appearing today with an optimistic on the recent market volatility. Listen i think what happens from here is a function of your view of how the coronavirus plays out. Call me an uninformed optimist i keep telling people you know i dont have a medical degree, i have two ph. D. S, but theyre honorary if im right on the virus call, and thats the big if, i have no particular expertise, i think the market at the recent low of 2187 was close enough to the bottom to be called the bottom if the economic shutdown goes beyond april into the third quarter, i would be less optimistic scott, i mean most investors dont have medical degrees so how do you make a call on this market right now well, i certainly dont either, sara, but heres the way i think you need to look at it and i adwree with cooperman to some extent is right now, the market knows that were in the middle of this big surge in the number of cases, the number of deaths we know this is going to last for probably another week or two. And i think if you talk to most medical people, the expected peak before the curve starts to turn over and we see fewer cases is the middle of may, but the negative Case Scenario and were not negative, were encouraging clients to step in on this pullback, but the negative cases certainly if this doesnt peak in may, and we go into august or september, the markets not going to like that very well and you could very well take out or at least seriously retest that recent low mike, just want to come to the Broader Market because clearly weve slipped quite significantly again in the last ten, 15 minutes look iing at the dow there down 4 . 870 points what do you think is going on now . Honestly, i dont think theres anything news driven yesterday, we had kind of an out of nowhere ramp to the whereura the upside theres been a lot of expectation for position iing f this large reallocation out of fixed income and into stocks that Pension Funds have to do just because the performance is out of whack i dont know if that activity was mopped up yesterday or it simply reflects fridays have been tough since this crisis you know hit us. Wed have two days o s of a new vacuum and i dont think its that surprising wed be pulling back, but i dont think theres necessarily anything else dependent on besides those things okay, bank of americas Ceo Brian Moynihan was on cnbc earlier today. He explaineded why he thinks the bank is better prepared for the coronavirus outbreak than the financial crisis as we think about how we go to war as a company, whats different this time is our capital liquidity, the work done in our industry across the last decade plus with the regulators, the laws, rules that changed to let the Bank Industry being in a great position to serve clients through the last few weeks as this thing has hit and youve done loan draws, so running the company now has been more about operational matters versus risk matters. I mean i would say guys as well the big, big take away over the cur the course of the last week and this stimulus bill coming out is its clear to see banks arent the epicenter of the problem, the area thats being fixed and theyre part of the solution i think thats certainly encouraging relative to 2008, 2009 doesnt mean theyreabsent of the problems that the economy, the broader economy faces now, but mike, the only point i bring one that is that they have traded somewhat as if they are the epicenter of the problem they were always the sort of second worse performing sector after energy when we were at the lows late last week. But clearly, they are note not right in the epicenter and when you do look into interviews like that with Brian Moynihan and the termses o the bill, it reminds you of that fact z for sure i think theyve traded poorly but because of the consuming concerns do involve. Have we seen a turn for the worst in the entire credit cycle. Not as if the banks are being treated as culprits, but they are Collateral Damage if this economic shutdown does jeopardize a lot of outstanding corporate and consumer credit. So i dont think those things are necessary mutually exclusive that you would have the banks kind of going down even though theyre not really at the epicenter of this whole thing. Well you mentioned that energy is the worst performing lets hit oil because a sharp decline today certainly weighing heavily on that sector and the market Pioneer Natural Resources ceo joined cnbc yesterday to weigh in on the future of oil and gas companies. Theres about 74 public independents theres only going to be about ten left at the end of 2021 that have decent Balance Sheeted. The rests have become ghosted or zombies. Brian sullivan did that interview and he has more. With the coronavirus headlines and fears, you know, you almost forget theres an oil shock going on, which is another huge weight on the markets and gdp. Its unbelievable its like a greek tragedy. Remember the two rocks trying to crush it and the oil industry and by the way, hundreds of f thousands or maybe a million plus jobs are at risk as well. Strong words from scott sheffield. Ill give you some statistics to back it up and say if the market, the equities side any way, maybe pricing this in the average return of a companys stock that operates in north dakota is negative 87 over the past year Six Companies where thats their primary operating region, a higher cost area and the stocks around 87 theyre effectively getting wiped out along with their investors, guys. It has been an impossible situation. Not only because the price of oil has fallen down again today but also because weve talked about extensively the crushing debt loads ive said it before. Oil is a four letter word. Its spelled debt i think what the fed is doing, buying corporate dead sh, was sort of a wink and a nod, semi bailout to oil and gas because the bonds of these companies are also getting whacked and you know a lot of those are held by the banks that you talk about every day thats true, brian. Sorry to interrupt, to jump in there, sara, didnt know if you were about to say anything, but when we saw the initial plunge in oil prices, we saw various banks analyst come out with their exposure for the big ones, typical exposure was about 2 . Clearly if you have to write all two to zoe row, its a massive hit in that Current Quarter to your earn, but its not to the sort of scale and level that 2008, 2009 delivered to the banks which was are these Companies Going to go bust now clearly, if the entire economi economy closes down for 12 months and youre talking about restaurants and airlines, then thats a different story, but u oil and gas exposure apart from some of the smaller regionals is in a huge amount of the loan back book and partly because of the market cap of these companies is so small these days compared to what it was ten or 20 years ago its a fair point but youve also got to remember that oil and gas debt makes up a much larger part of things like the hyg and j and k. All these high yield bond etfs that have trading wildly with the market and you talk about the blacblackrooks and some of e big etf holders, there are knock on effects its not like oil and energy t debt is going to bring down the big banks. Just kind of another punch in the face with whats going on. With the demand destruction heard about is probably 15 Million Barrels a day worldwide. Thats 15 and it may go even higher than that ill see you at 5 00 on fast money. We will indeed. Thank you so much for that pot stocks like tilray seeing big gains this week. Tilray surging more than 140 this week. Far outperforming the other Canadian Cannabis producers as they really stock up during the coronavirus outbreak the Companies Made several recent changes with the dwoelgo reaching profitability they also reduced the workforce by 10 last month. Possibly moves that made their financials more attractive the companies also launched a value brand to compete with the legal sellers and thats really an issue that weighs on all the pot stocks and a big reason why the marijuana etf fell more than r 66 u 66 over the past year. Thank you one minute left of trade mike, what are you seeing in the market internals today. Been pretty draggy. It was 31 to the negative side. Not good but for the week, we had been up in stocks, corpororate bond s. Now its been rushing back into all asset classes. Volatility index never gave an all clear. Little bloated now in the 60s. Ten seconds left until the close. As you can see we are down 930 points 4 on the dow. We rallied to be down less than a percent about 40 minutes ago sold off again into the close. Not far from the session lows which was down just over 1,000 on the dow down 930 points at the close, but still up well over 10 for the week as a whole for all of the major averages a strong week, but with a bit of a soft end sara all right and welcome back, everyone if you are just joining us, im sara here with wilfred and tyler math sonson along with mike, cnbcs senior markets commentator. That is a wrap on a week that was actually pretty positive the best week for the dow since the 1930s and for the s p 500, since 2008, ending down. The dow falling more than 4 the s p 500 falling 3. 4 today and the nasdaq and russell 2000 also closing in red. The nasdaq is down on 4 russell 2000 underperforming got a little boost about 20 minutes ago in terms of the market but then we took a little spill into the close nothing like the 9, 10 moves we were seeing in the past few sessions coming up this hour, the ceo of slack tells us about the surge in working remotely. Join iing us to talk about te market day, scott wren and Gabriella Santos mike of course with us as always mike, clearly, a 4 slide into the close was quick, quite sharp how quickly it came about. That said, relative to the week, were still up nicely. Relative to the concerns over the prior weeks held up as well. Whether thats slightly low eer yields, softer dollar and better behaving credit market for sure. I think that its pretty intuitive. Coming into today, i thought the consensus was you have to take some off the table and maybe sell this 18 threeday rally in the s p 500. People very much have kind of cadence of typical bear Market Dynamics in their minds and tladers are quick to act on it there was a headline about the fed perhaps reducing its purchases of treasuries going into the next couple of days which to me, b isnt so much decisive or instrumental in the market view, but shows maybe fragile psychology but youre right for the week, the market built up a cushion above these recent lows and you can kind of take it from there into next week i think fridays also as i mentioned earlier, have been a little bit tough because this is, were not really dealing with an information flow that the market is confident in being able to sniff out and handicap as we go along so two days of not being able to trade looms large as we head into a weekend mike, youre never willing to give the e ffed credit or take away yet so many people think that every market this is very no, i mean i think the headline without a doubt probably did slice a little off from the trading front today. But we went above 5 trillion in total Balance Sheet this week. It seems like tapering the purchases of treasuries down the road was not a swing factor in whether in fact that the fed is supportive or not supportive right here gabriella, whats your take as we await the president s signing into law the stimulus package, the bailout package how long can that support the economy if it remains in a sort of semistate of lockdown as it is now well,i think its interesting. Wen we know about where we set today, which is in a recession at this point. Thats all the data we got this week, really confirming that, and we know were building bridges to the other side. Thats why the market had such a positive week this week. We had that fiscal response, the monetary response. The issue i think and that leads us to think volatility might stay high is that we dont know how long it will take us to get to the other side. Meaning how long well be in this state where covid19 cases are rising and hence where we have restrictions on Economic Activity in terms of the fiscal package, this one, 2 trillion, 10 of gdp, it will help, but if this goes longer than we expect, we might need to see more scott, do you feel now that whether its treasury, whether its congress, whether its the fed, that all of this sort of financial technical plumbing factors have been addresseded and its just a case now of watching the fundamental numbers terms of cases and deaths of coronavirus . Certainly, the Federal Reserve took out the bazooka Congress Took out the bazooka. Now with congress, you have to wonderf is this money, is this going to be efficiently and quickly deployed to the places where it needs to go and lets face it. This is not really stimulus. This is a relief package to hold the economy in until we do get to the other side. Now from our side, our opinion, is that the fed still can do some things, certainly jay powell thinks that the fed can continue to do some more things. Congress is already talking about you guys have done numerous interviews with members of congress and they are already talking about coming back and doing more so, i think that those are two positives for the market but certainly, the you know, if were all staying at home sitting in our home offices, you guys have been broadcast iing a anchoring shows from your home or apartment and if that drags on, thats going to be a big problem because face it, the economy is driven by Consumer Spending we need some confidence. Theres going to be some pent up demand that will eventually be released we do think well see some positive gdp in the Fourth Quarter and Better Things going on in 2021, but certainly these first three quarters were looking for a contraction, negative numbers, especially the Second Quarter so we have some things to get through, but at least we have a Good Foundation here that will likely cushion the blow and help us get to the other side yeah, what do you think is in the market in terms of expectations for economic declines now that we have the 2 trillion relief package from the fiscal authorities and the fed step ng in a major way as a lender and bir of last resort sure. So i think the market is expecting a very, very bad Second Quarter here. For gdp. Estimates are still a little bit all over the place but double digit contraction i think is very much expected. With an accompanied earnings recession, which is slowly be reflected in earnings expectations i agree this is not fiscal or monetary stimulus. Its really not going to be able to prevent that double dip contraction, now were still all trying to figure out is what the second half looks like and we absolutely have very, very little visibility on this, so i think theres a desire to be hopeful that the second half is going to be better but we really will have to continue watching the growth rate of the new covid19 cases to be able to gauge this its very hard to model the evolution of a virus, of a new one and one thats being reacted to so differently around the world. It was a roller coaster session today and even more so for this week as a wholeme lets get to bob pisani with a breakdown. We got a reminder of what bear market rallies look like. We rallied 20 from the monday lows going to thursday and everybody said okay, maybe were near adefinite bottom. We got reminded today, thats not happening. If you look at the s p, huge intraday swings this week. 5, 6, 7 this is why the vix is not dropping traders think this might continue for a while even though were up 10 for the week boeing went to 180 100 swing practically in a week chevron was 70 went to 52 then on monday back towards 70 so 25 swings here jpmorgan, 94 then 74 its very hard to figure out where the market should be proctor and gamble, it goes to 94. More stable recently, then back to 110. Going back six, senven trading sessions and this is why the vix remains 65, 66, 67 because it implies intraday volatility of about 5 to 6 . Thats what weve been getting for the month. We need to volatility to come down intraday, 2 or 3 moves instead of 5, 6, 7 moves then well see the vix come down and see things quieting down but as you saw today, 100 point swings in the s p. Its not quieting down yet so we dont know what the earnings are. Very hard to figure out what the price prices are, guys, have a good weekend bob pisani, thank you so much have a wonderful weekend yourself meantime, another wild ride in the bond market in the currency market in particular rick has that for us rick yes, look at a ten year chart just for today the way its nose diving at the end. Yes, got down to 66 basis points and its at 68 85 yesterday, which means were down 71 for the day and 17 for the week open it up to last friday. Not only are we moving lower right as the session ends, were at new lows of the week at 66 basis points this is not instilling confidence remember, low yields maybe good, but too low yields are never considered good. Lqd. Talk about a wild ride. Look at it a one month chart gets down to 105. Over 122 lots of volatility of course everybodys talking about Investment Grade issue answer is just through the roof and finally, the volatility award, ive never seen a dollar index month like this. This is just the month of march. Low of 95. Zooms up to 103, settling a little above 98. Wild volatility. Back volatility in the currency markets, the pair, the pound, shows it the best. 7 it rallied this week. Ive never heard anything like that for a major amazing to see it at the lowest levels greenback since 85, isnt shocking it had a nice bounce. Well deserved bounce thanks so much for that lets get to phil lebeau hes got breaking news on a story weve had a lot of back and forth on throughout the day. Well, the president has decided despite the fact that General Motors and vent tech said theyre going to go ahead and start manufacturing ventilators, that wasnt fast enough so he has signed the defense production act and essentially what that act does is he can now say look, we are going to by the way, the defense production act, not protection act. The defense production act basically requires General Motors and vent tech at the order of the u. S. Government, to produce ventilators and so they have, he has signed this and its specific to General Motors. Guys, this is not hey, ive seened this for all companies that are supplying products to help in the fight against the coronavirus. No, this was specific to General Motors and the production of ventilators. I have reached out to General Motors to see if this changes any of its plans, which are currently for manufacturing of ventilators to begin at an engine plant in kokomo, indiana. Theyre already outfitting that plant, getting it ready for production its going to be basically a clean facility, so its not like theyre just taking an old auto shop and said yeah, put a couple of machines up and start cranking on ventilators. They have to meet fda requirements so theyre in the process of ready diing the plant, making sure the workers are trained to build the parts and ventilators then they expect within the next senne to 14 days to start cranking out ventilators not sure how much that changes given the defense production act odd timing as youre implying given what we discussed last hour this they were already starting to make them. Right my one question and i think probably well have to read up on exactly what the terms of the act imply, but does it all to what price im sure theres an element to that. Theres an element to were going to do it at cost at best any way. They werent going to make a big profit but i wonder if it now gets forced at a loss or Something Like that. The issue here, this gm says thairs building these at cost along with vent tech gm is a contract supplier. Its not like gm said get into the ventilator issues. If you have issues, let us help you. Venn tech is the company thats going to be negotiating with the federal government the issue is one of cost gm says this will be done at cost there was this New York Times article that came out yesterday saying those negotiations involved perhaps a much higher price tag. That is what got the eyre of the president s. Thanks for that wonder if there will be more twists and turns on that story our thanks also to scott and gabriella. Apologies the Broader Market check got squeezed there up next, Carly Fiorina will ll iain why Congress Relief bis too much too soon. Back in 90 seconds and sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. But when allergies attack,f any the excitement fades. , allegra helps you say yes with the fastest nondrowsy allergy relief and turning a half hearted yes, into an all in yes. Allegra. Live your life, not your allergies. Wewithout the planet cooler getting warmer. At emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. And sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. The president expected to sign the 2 trillion relief bill any moment now included is 350 billion for loans for Small Businesses to cover salary, wages and benefits as well as 500 billion in direct aid for big businesses. For more, lets bring in Carly Fiorina, former hewlettpackard ceo. She says shes not a fan of the Corporate Bailout. So overall, you dont like this bill, carly. Well, actually theres much about this bill that i like. I think they were very creative about helping Small Businesses i agree that individuals and working families need a helping hand right now so i have no trouble with that part of the package a. 500 billion in Corporate Bailouts i think could be far better used. I think we could do more for Small Businesses, for example, i think we could prepare for the Mental Health crisis thats going to enshoe here i think we could be preparing for Domestic Violence and child abuse cases that are going to skyrocket. But Corporate Bailouts in general didnt work particularly well we remember gm and krchrysler, ford did not take it they were then at a competitive disadvantage later even though they were the Stronger Company Small Businesses that supplied General Motors and chrysler were crushed. They lost more employees jobs that never returned than the jobs that were saved in the bailout. Boeing hasnt particularly operated in a way that i think requires them or allows them to deserve a bailout. The airlines have been you know loading up on cheap debt and buying back their stock to the tune of 46 billion over the last eight years and the cruise industry has avoided american flagging so they can avoid taxes and regulations so its the 500 billion of Corporate Bailout that i object to i think it is not taxpayer money well spent and i dont think the companies honestly have earned it and they have vast resources at their disposal through some of the backstops and extraordinary measures that the Federal Reserve has taken. Carly, theres certainly some parts of any Corporate Bailout and you listed some of them very aptly there, but just to be clear, i mean youre happy to let these companies go bust and all the jobs go away you think thats a price thats worth paying to get over the sour taste that a bailout would leave in someones mouth i guess what i dont really understand is how weve come to this place where we think its a bailout or nothing the bankruptcy laws in this country work the airlines for example have continued to fly and pay their employees through bankruptcy its not unprecedented and so i think the notion that all the jobs will disappear and no one will get paid unless these companies are bailed out simply isnt factual now do i believe, by the way, that these companies lobbying if government for this. I absolutely understand that a bailout pops their stock b and a bankruptcy country i think big business is very effective at lobbying but i dont think its accurate to say the only option here is a bailout or companies disappear not companies of this size and this strength. The difference here versus 2008 is that this is a forced economic sudden stop to prevent more deaths and more people getting sick in this country i mean this is not boiling out not sure if we could hear saras mike there, carly, but yes, i could. Go ahead. She was saying and shes correct, this is an economic downturn unlike any other and thats absolutely right. This is forced economic stop its also true however that because it is unprecedented, the Federal Reserve has taken unprecedented steps. The Federal Reserve has basically said there is limitless money to borrow to get you through this difficult time. Thats a lot of support for these Big Companies. They are a good credit risk. I cannot believe that i think its not factual that they will simply disappear of course we need to try and save jobs. But the truth is the Small Businesses in total have more jobs at stake than these Big Companies do i also must say dont like the idea of the government taking equity stakes in these companies. President trump has been reluctant to nationalize industry those are his terms and that has explained his apparent reluctance to sign the defense procurement act other than for gm, but the truth is the defense production act is not nationalization as i understand it, but the government taking equity stake in an airline now were starting down the path of nationalization and carly, sorry, my microphone was having issues this is so different than 2008 you know in 2008, theres a lot of criticism of the bailouts because banks had bad behavior then got boailed out to save th government this is different. The government mandating a sudden stop in the economy and obviously the job losses are piling up. We saw 3. 3 million americans unemployed so this whole notion of boits, its really just relief, isnt it, to keep workers employed and keep Unemployment Benefits going so that theres not even more damage as a result of this crisis well, in some ways, yes, i think youre correct but Unemployment Benefits are going to keep going with or without this bailout thats part of this 2 trillion package. 1,. 2 as i mentioned companies can pay their workers through brankruptcy. Point three. In a free market economy, important that market actors bear the risks as well as reap the rewards so when you have an industry like the Airline Industry that in the good times did nothing to prepare for bad times. Yes, this is unforseen, but face it, bad times are always unforseen. So was the dot com bust, so was 9 11 and the severe recession that followed. So instead of strengthening your Balance Sheet to prepare for bad times, they loaded up on cheap debt and bought back their stock. The cruise lines now are asking for help from the federal government and yet they have avoided u. S. Government taxes and regulations for the last 15. I think thats i think its fair, but dont you think a wave of bankruptcies would make this crisis worse and inflict more pain when, yes, they can reexamine their behavior, but the cause of the pain right now is not anyones fault. I agree the cause of the economic slowdown is no ones fault absolutely right im only trying to make the point that it is a companys responsibility to prepare for bad times. In good times. That is part of a ceos job. Its a huge part of a ceos job. And so when Companies Fail to do that, and then the bad times come, and yes, this is an unprecedented bad time, im not sure the first thing we should let them do is stick their hand out and ask for help there are a lot of parts of the economy honestly that need more help right now than these Big Companies. Maybe they will need help later, but thats what i meant when i carly, airlines are seeing 90 revenue drops. I mean you were a ceo. You cant run your business and prepare for that kind of hit thats right and so does the corner restaurant see iing a 90 drop in their revenue. Thats exactly right my only point is that Big Companies like the airlines have a set of tools at their diz pose sal, including bankruptcy laws, the full backing of the Federal Reserve, including a very good credit line with major banks that the Small Business doesnt. The Small Business is seeing 100 drop off in their revenues and they dont have the ability to pay employees right now so you may be right. There may be a time, but i think as a priority matter, in this first bill, we should have been focusing more attention and frankly more money on Small Businesses, individuals and working families who are getting crushed and who dont have the same tools at their disposal that these large corporations do Carly Fiorina, thanks so much for joining us thank you still ahead, the ceo of slack will join us and discuss his companys move to integrate calling features with Microsoft Teams service. Trying to merge the two and make them Work Together you can always watch or listen to us live on the go on the cnbc app. Well be right back. So what are you working on . Im searching for info on options trading, and look, it feels like im just wasting time. Wasted time is wasted opportunity. Exactly. Thats why Td Ameritrade designed a firstofitskind, personalized education center. See, you just oh, this is easy. Yeah, and thats oh, just what i need. Courses on options trading, webcasts, tutorials. 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Download the xfinity my account app today. Welcome back more news on gm. One of the dra mats of the day phil we now have a statement from venntex and General Motors, specifically targeting them and saying they will build vent liz ers at the order of the u. S. Government they say our Supplier Base have been working around the clock for over a week to meet this urgent need. Our commitment to build the high quality Critical Care ventilator has never waivered so theres the at least initial statement and again remember what the president has signed, the dpa, still unclear if this changes gms plan out of kokomo, indiana, in the next seven to 14 days back to you. Still ahead, inside the work from home trend. Well interview the ceo of slack and get his take on it this Remote Working surge will be sustained and tonight, dont miss our prime time special report markets in turmoil, 7 00 p. M. Earn time. Then at 7 30, the path forward your business. Well be talking with Marcus Lemonis and danny meyer. Tweet us your questions in advance. Hash tag cnbc path forward well be back in a couple of minutes. Not the exception. At emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. I know that every time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. At t has connected us every day for over 100 years. And were here for you especially now, doing Everything Possible to keep you connected. Through the resilience of our network and people. We can keep learning, keep sharing, keep watching, and most of all, keep together. 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Nasdaq, three and three quarters and russell 2,000 off about 4 thanks so much for that lets go to mike now hes got his market dashboard. Mike yeah, we continue to get more information about how individual investors have been navigating this market shock including this chart from bank of america about their own Wealth Management clients, the Asset Allocation there. And obviously what you see is a huge drop in the equity allocation from about 62 down to 52 that brings it below the longer term average then cash is where most of that went. You see this big jump in cash to a more than decade high of around 16 now both of those things are not as extreme as we saw back in 2008, 2009, after a year and a half bear market where equities lost about half their value. So i guess you wouldnt expect the response to be so dra mat i but it does contribute to this notion that it has turned pessimistic. There was a kcrescendo of fear this week. Its unclear if that flows back into stocks quickly, but it suggests expectations have been lowered, so sentiment was a head wind not so much anymore at least mike, i have one, not hugely important question, but relat e relatively important, which is how long do you think this work from home crisis has to go on before cnbc installs a telestrator in your home there, where ever it is precisely im working whatever channels i can manage but i have not been given a date or a promise of any sort but its obviously doing an outsta outstanding job without it, but we do miss the telestrator i think they should just pick it up from the Stock Exchange and bring it your way. Wipe it down after every use. We also miss seeing your face and each others we are just getting word that President Trump has sign ed the 2 trillion relief bill. We are awaiting tape which we will show you as soon as it comes in, but obviously a historic package that will aim to get money in the pockets of americans of Small Business and of big business during this unprecedented economic sudden stop in our country as a result of the pandemic. Of course well bring you as soon as we get any more word meantime, the ceo of slack tells us whether his company is seeing a surge in users with so many not just us, now working from home well be right back. Yes. Its the first word of any new discovery. But when allergies attack, the excitement fades. Allegra helps you say yes with the fastest nondrowsy allergy relief and turning a half hearted yes, into an all in yes. Allegra. Live your life, not your allergies. We were to go to Stewart Butterfield to discuss slack, but we are just awaiting the video of the president officially sign iing the 2. 2 trillion coronavirus stimulus bill into law and sara of course still with us. Sara, this is absolutely historic i guess the market has priced it in we already expected this moment to come once it pennsylvanasseds even the senate, but an enormous bailout stimulus, whatever you want to call it package going into law as we speak well i think you know its a relief package that helps mitigate some of the economic fallout that we are witnessing in real timeas large parts of the economy are shutting down. Thank you all very much its a very important day. Ill sign the single biggest Economic Relief package in American History and i must say or any other package, by the way, its twice as large as any relief ever signed its 2. 2 billion, but it actually goes up to 6. 2 billion. Trillion dollars so youre talking about a 6. 2 trillion bill. Nothing like that. And this will deliver urgently needed relief to our nations families, workers and businesses and thats what this is all about and it got a 96 to nothing and i dont know what was the number in congress fantastic. Just as close pretty amazing. About the same thing, right, kevin . Yes thats fantastic. Imt to thank republicans and democrats for coming together, setting aside their differences and putting america first. This provides for direct paym t payments to individuals and unprecedented support to Small Businesses were going to keep our Small Businesses strong and our big businesses strong and thats keeping our country strong and our jobs strong. This historic bill includes the following. 3300 billion in direct Cash Payments will be available to every american citizen leaearni less than 99 thers ,000 per year 3,400 for a typical family of four so family of four, 3,400 then 350 billion in Job Retention loans for Small Businesses with loan forgiveness available for businesses that continue paying their workers the workers get paid approximately 250 billion in expanded Unemployment Benefits the average worker who has lost his or her job will receive 100 of their salary for up to four full months, so things like this have never happened in our country. 500 million in support for industries with a ban on corporate stock buybacks we dont let them buy back the stock. We dont let that happen and tough limits on executive compensation over 100 billion to support our heroic doctors, nurses and hospitals and you see whats happening. And i want to thank while were here also the incredible job thats done by the army corps of engineers and by fema. Its been incredible they did four hospitals in two days or three days in new york and theyre like incredible structures what a job theyve been doing and theyre doing them all over the country 45 billion for the Disaster Relief fund supporting our state, local and tribal leaders. 27 billion for the development of vaccines, therapies and other Public Health response efforts including 16 billion to build up the Strategic National stockpile with critical stockpiles and im going to, we have tremendous supplies coming into the stockpile and youll be seeing that and hearing about it a little bit because were doing a News Conference at 5 30. On whats happening. Weve had tremendous results on the respirators. Weve had Great Results on just about everything were talking about. Boeing just announce d that theyre going to be making the plastic face shields, the actual shields, which are hard to come by and theyre going to be making them by the thousands a week and the ventilators, which is probably the most difficult because its like, like building a car. We will be announcing thousands are going to be built and we have them under contract and we have fast deliveries as you know, we delivered thousands to new york and unfortunately they were delivered to a warehouse, which was good, unfortunately, they didnt take them, but now theyre taking them. New york is now taking them and redistributing them around the areas they need. So you have 3. 5 billion to states to expand child care benefits for health care workers. First responders and others on the front lines of this crisis and 1 billion for securing supplies under the defense protection act and as you know, ive enact ed the act. Weve used it three or four times. I pulled it back three times because the companies came through. In the end, they didnt need the act. Its been great leverage i have instituted it against General Electric we thought we had a deal then the 40,000 came down to 6,000 then they talked about a higher price than we were discussing so yoint like it so we did, we did activate it with respect to General Motors and maybe we wont even need the full activation, well find out but we need the ventilators. I said hello today, i call ed hm a wonderful guy, boris johnson, as you know, he tested positive and before he even said hello, he said we need ventilators. I said wow thats a big statement and hopefully hes going to be in good shape. I just spoke to Angela Merkel and shes quarantined, also. Shes right now for a period of two weeks being forced to stay in her house so this is just an incredible situation. Last night, i spoke to president xi we talk ed about the experience that they had in china and all of the that i thinks that have taken place and we learned a lot. Theyve had a very tough experience and theyre doing well and hes doing well president xi is doing very well, but we learned a lot and we have great communication together were going to be sent great data from china. Things that happen that they see that theyve had a, theyve had an early experience and were getting all of that information. Much has been sent it was sent yesterday and sent to our scientists to study so well have more on that also. Well be discussing that at 5 30 i want to thank the people behind me. Theyve been incredible friends, warriors, nobody tougher, smarter than the people standing alongside of me and i think i want to start off by asking mitch then kevin to speak then were going to go through a few of the folks in the room if theyd like to say something, but mitch, id love you to say a few words because this man worked 24 hours day for a long time this is the result its the biggest ever, ever approved in congress 6. 2 billion. 6. 2 trillion. So you know we used to get used to the billion useded to be million, then billion, now its trillion and its going to go a long way. Going to make a will the of people very happy. Mitch mcconnell, please. Thank you, mr. President. This is a proud moment for our country. For the president we will continue to monitor this as the president in the white house prepares to sign that bill into law 2. 2 trillion of a relief package that will go to individuals, Small Businesses, big businesses, hospitals, all dealing with the economic fallout of the pandemic, which is firmly disrupted our way of life here in the u. S lets bring in kayla with more shes been doing a ton of reporting on how this bill came boo hawe ainto law and who stan benefit. Well, its record size. It was with record speed that Congress Passed this massive legislation. Just about one week after the rough outline was published by Senate Leader mitch moc konl as sort of the working living document from which a democrats and republicans brought this to life in conjunction with the administration certainly much faster than any of the relief was brought to bear in the financial crisis which took weeks and in some cases, months, this is a record speed, but then again, when you think about some of the data were already seeing about how drastic the economic is, 3. 3 million job bless claims yesterday, it is clear they were trying to tlart a crisis of worse proportions than back then kayla, thanks so much for that sorry for not picking up immediately. I want to bring you breaking news based on filings heading after the market close, which is various jpmorgan executives have bought stock, which would have been in the last day as the filing hits and some significant numbers. Of course this has particular reticence given that jamie dimon in 2016 at the market lows stepped in, bought stock and many look back on it as the dimon low for the market according to these filings, looks like jamie dimon has acquired 192,000 shares or there abouts thats not the precise number. 91 we closed at so that comes out at about 17 million worth of stock and it looks like every single direct report that dimon has also been buying stock maybe thats how they decided to break it down. Marietta ta buying about 50,000. About 5 million gordon smith, president and coo, head of asset management, head of the retail bank, about 50,000 shares daniel pento, head of the Investment Bank buying, a little less, 11,000 shares. The head of the consumer business former cfo, 31,000. The head of the corporate business, about 27,000 shares. So a significant show of faith in the company by most of the Senior Management at jpmorgan buying stock and 17. 5 million worth for the chairman and ceo, jamie dimon, whos time d this well in the past, sara yeah. There was the dimon bottom where he actually started doing that and then we saw stocks reverse course after a pretty deep sell off. I would just add that this actually a much broader story. It is happening in companies everywhere the wall street journal had a great takeout on this. More than 2800 executives and directors had purchased 1. 2 billion worth of stock just since the beginning of march and those are nearrecord levels in terms of individuals and dollar basis. The question, i think, will fred is how well timed that is going to prove to be ultimately if these stocks start to come back like we saw this week, and just whats driving it. Do they think that their Company Stock is cheap or are they stepping in with the patriotic duty here as the country finds itself in the middle of a crisis well, 17 million is more than just patriotic duty, i would hazard a guess i doubt they would do that just on a whim and clearly, this is their own money. The banks own share buybacks are stepping in and weve seen the wells fargo ceo Charlie Schaaf do that about a week or so ago anyway, well switch focus now with j. P. Morgan shares trading up in fterhours trade the coronavirus, of course, dramatically increase the number of people working from home and slack and one of the companies benefitting from that corporate shift. Slack seeing a surge in new created work teams and reporting a record 12. 5 million connected users on its platform and the slack ceo joins us first in a cnbc interview thanks for bearing with us and a lot of breaking news in the last 20 minutes yeah. A lot going on thank you for having me. I guess the first question is just gauge for us the level of pickup and demand for your service. Im intrigued. I know earnings were a couple of weeks ago. Is it just incrementally increased since then yeah. Its been a pretty dramatic shift. We reported earnings on march 12th which is a lifetime ago at this point the evening before, march 11th was the moment when the mind shifted in america and it was the nba suspending the season it was trump announcing the travel ban and i think the psychology really changed and its an interesting position in touch with a lot of other ceos and one of the topics, do we suspend guidance and how do we extrapolate . Its been tough and the ramifications for us as a company is the massive increase in usage and new users increase utilization of expansion and existing customers and it is very difficult to see where that ends up over the course of this year yeah. Im wondering how you think about it from the longterm perspective. Did you see this as just a temporary psyche when people start going back to work how do you prepare for that . Well, i think theres something slightly different going on here and for us, the context is usually talking about working from home, we have employees who worked from home before they have a home office and they have child care and they have a normal life. I think whats going on right now is quite different and its working during the pandemic and you have kids to take care of. Youre arguing with your spouse about who gets to use your modest Internet Connection and which part of the Kitchen Table you do your Conference Calls on, and thats very different. I think the need right now is to support when were working, but even more to support organizational agility and thats what we were built for. Organizational transformation and help people increase the degree of alignment. That is a shift that i think is permanent because it was inevitability and maybe it would happen the next five to seven years and we fast forwarded it 18 months. Stewart, you partnered in small ways with microsoft, not partnered necessarily, integrated with microsoft and their platform in the past that stepping up, i think im right in saying at the moment. Is that just because of the Current Crisis or is that a stepup in the longterm partnership that youio see with one of your big rivals this has nothing to do with the Current Situation and something that weve been working towards over the course of many years and integration with onedrive and the calendar the reality is we have an incredibly strong business in enterprise and almost all of our customers are also office 365 customers and the fact they use slack doesnt mean theyre using a bunch of microsoft products. What have you observed about people working from home and using slack . Are they adding more services and what needs do they have and what trends are emerging as we all try to adapt to this new life its been interesting you think about what people hope to accomplish and its often to get a decision made and its to update people in the status projects theres a whole bunch of reasons to have a meeting and theres an immediate obvious switch that goes off, hey, were used to sitting in the same room and now were at home and need to have a videoconference. The best way to support that work and knowing where you can ask the question is often better served by others and in the case of slack thats channels so we in the first 60ish percent of this quarter added 9,000 new paid customers compared to 5,000 for the previous quarter and 5,000 for the quarter before that, and thats an enormous surge weve also seen the number of messages per user up 35 and suddenly people are discovering techniques that were available to them before, but that suddenly become mandatory because one of the only tools you have are meetings and email and meetings suddenly become a lot harder to pull off and you begin to look for alternatives stewart, in terms of in terms of what everyone is using the product for, is there a future now that you see outside of the workplace that its not just internal corporate usage and it can be used by consumers, as well. Weve seen interesting stuff happening with zoom with happy hours and birthday parties because slack is specifically designed for some goal or set of goals. It doesnt have to be business weve had incredible share in the academic world most of the top Research Labs and its very energizing for our employees today to be in a position to support researchers who are working on vaccines and other mitigation strategies but you see nonprofessional usage in home renovation project or organizing a wedding or a kids soccer league. Its about getting stuff done together and creating transparency so yes. Stewart, so just to be really clear, you know, will frfred mentioned earnings and your stock took a slide on the conservative guidance and are you saying that the situation has changed completely and people should sort of throw that out the woind and rethink about what they think about how slacks business will look like this year. I believe anyone who has the answer to that question is fooling themselves we look at what happens on the Small Business side. There could be millions of bankruptcies and we have a very can shut down spending on the other hand, the signups and people are seeing the need and we also see expansion in existing enterprise customers and its hard to know how those two forces balance each other out and there are other things to consider, too talking to other software ceos, what do you do when youre not doing field marketing events to drive customers. What do you do when your executive breathing is shout and how will that manifest in growth, three, four, six, seven, eight months stewart, thank so much. Stewart but the arefield on slack. I have to issue a correction on j. P. Morgan. The fresh purchases were not fresh purchases and they were preplanned vesting on stock for all of those executives and just to reiterate that. That was an error on my part theyre not fresh purchases from those executives and should make that very clear, indeed, and any move that we did see in the stock price in afterhours trade therefore are necessary and no doubt will be reversed as that correction filters back into the marketplace. Final thoughts, guys, on whats been a roller coaster week mike santoli, i mean, still very strong 10 gain on the s p despite a gut check towards the close there. Yeah. I think the 10 gain is more sail yent than the pullback on friday, and i still think put distance from me in the levels and the lows and is this a bounce or the makings of a base for the real market and not determined just yet. I just want to hear more news on are there people being tested are there antivierls and how is it all going these are potentials for good news and the trajectory of the pandemic in the country. In the meantime, numbers are rising at alarming and horrifying rates they are. In new jersey, thousands of new cases just overnight and it has been a crazy time, a crazy week. Lets hope it gets better sooner lets indeed hope that. Have a great weekend, everyone thanks for tuning in with us and stay healthy Brian Sullivan is next welcome, everybody, to cnbcs continued coverage of the markets in turmoil i am Brian Sullivan. Just a reminder we continue social distance here at work trying to flatten that curve, welcome, everybody, as tyler says as he always