Power lunch starts right now the s p 500 briefly dipping below 3,000. Bob has more on todays sell off. This is a very interesting day because its complicated we had a 70point swing in the s p 500. Wii right on the verge of going positive its not simple to say this is a day when the cyclicals started rallying the market is bit unsure of what to do. Just take a look at the dow leadership here. You say, look at all these industries rally here. 3m is up boeing is having a good day. Were seeing the other stocks. Raytheon is on the upside. You say the cyclicals are doing well thats not really the case look at the dow laggards, for example. You get defensive names like merck and pfizer caterpillar is still down. Banks are still down even though they are off the lows. You see its not quite simple to say the cyclicals are rallying boeing has been on a wile ride for weeks. It was 176 earlier in the day. Its been moving up and moved into positive territory. It was 155 two weeks ago it goes down to 190. Look at this all over the place. Thats an inverted v they are trying to figure out what to do stay at home still doing really well we saw cloudera doing well docusign going in. Thats a big deal. Theres a lot of money that will have to go into cloudera the next couple of weeks back to you. Another sign of the times bob, thanks very much. Lets get to the pond market where Rick Santelli is tracking the action treasuries expect long day remain quite well with this extra helping of volatility mostly to the down side. You know for many, many weeks were in in range closing in the 60 basis point area. Were getting back there again and technicians being so close to all time closing yields at 54 basis points really its a tough challenge to find sellers in the markets these days if you look at tens to twos, thats another technical blow if youre looking for yields to move up any time soon and we know the fed is pretty much buying a lot of the etf you can see they way they are both turned following stocks low er and lets look at the volatility index theres a year to date chart its close to the lowest volatility levels of the year. Kelly, tyler, back to you. Quick question for you. Were just getting word from the Federal Reserve and this might be boosting the markets even more this afternoon. They are talking about the da s detail offense the Corporate Bond purchases it will purchase Corporate Bonds to create bond portfolio of them this is a biggie it is a biggie. You can see a little tail wagging the dog. You might see the indexes move up a bit that should buoy stocks to some extent thank you very much Tyler Mathison over to you all right. We had a little hitch there at the top. They sent me back to the kitchen. Im here and glad im with you all. Welcome to the kitchen studio. Stocks are off therapy lir lows. A big dip. The dow up 150 point ons the news out of the fed. Earlier today, investor on halftime, investor leon cooperman said the markets wont get much worse this year but might not get much better. You have to make assumptions. My assumption is the virus will get more under control around the turn of year and clearly economic recovery is under way number one, i dont think we will break the lows of march which were 2190. The lows for the year. We will not exceed february high of 3393 any time this year all right welcome to both of you im going to begin with you. Well come back to mr. Cooperman in a minute. The news out of the fed is interesting. In part because one of the things you say is go where the money is going and that is into Investment Grade and Mortgage Backed securities. Is this a good portfolio play for individual investors yeah, since the crisis started one of our key themes has been follow fed and thats been very beneficial up until this point that has led to a significant spread tightening, appreciation from the naters of mid march in Investment Grade corporate and Mortgage Backed securities and high yield bond and emerging market debt. A lot of the big money from the strong beta moves krnarent madn credit we think the it will continue to be active in this market and credit spreads will continue to grinds tighter in an environment of volatility like what we saw last week. On the margin, we are putting our extra dollar risk capital into credit rather than equities at this juncture were looking at Higher Quality debt and increasingly starting to add to some emerging market exposures. Let me turn to you valley and get your reaction. Whats your reaction that maybe the worth is behind us but the messiah may also be behind us. I think its tough to assert with a level of confidence that the worst is behind us i dont know if were going to have v shaped recovery or a u shaped recovery. What i do feel is it will not be Straight Line by any stretch of the imagination. What we know is that the crisis was really started by a Public Health crisis, not a credit crisis the response has really been quite different for different state of thes and local municipalities the enforcement of social distancing rules and other Public Health measures has been quite inconsistent and for the last ten days we have had massive protests across the country and around the world and it stands to reason those things would lead to an up tick in the spread of the virus. I think that we will probably have a bit of a choppy road ahead with respect to infection rates. Let me interrupt. Mr. Coopermans assertion and wont test the march numbers do you think thats a possibilities. I think thats a possibility. Looking forward, i think we should expect well have these periods of pull back just a minute but back to eric, if i might does that mean and where should i put that equity money. Weve been biassed toward u. S. Large company stocks, biassed toward high quality growth the s p con stit constituents as worked welcoming out of the crisis we acknowledge that that segment of the Global Equity markets is fully or fairly valued at this juncture were beginning to move towards Smaller Companies stocks, small mid cap stocks but an emphasis toward quality starting tolook over seas we can take advantage of some more cyclical recovery but benefit from strong stimulus we think in europe the actions taken over the last couple of weeks on the fiscal side that will potentially lead to further integration and mutualization debts of northern and Southern Europe could be game changing. We see japan as an attractive play on cyclical growth. I want to amplify something valerie said because i think its extraordinarily important we do believe were going to see much more volatility to come we have seen over 22 million job losses we got two million back. Theres going to be more volatility thats really critical point. Valerie, let me turn back to you. You have three stocks. One is mastercard, star buck, one is merck what do they have in common . Why do you like them looking at mastercard and starbucks i was really focused on their governance characteristics. We believe you need it on board at all times 29 of mastercard board mewomen. 60 are diverse on race and ethnicity and they have 19 different distinct skills represented on the board 55 racial and Ethnic Diversity and 18 distinct skills you have the voices at the table on the board level when you have crisis at this nature. They have a strong oncology franchise. Its quite illuminating voice. Indeed he has valerie grant, thank you very much eric, we thank you as well kelly. U. S. Cases of coronavirus have climbed bo eed above two m now as states like texas and arizona try to balance reopening amid sharp cases of hospitalizations its about flat in terms of adding new cases per day its 7day moving average around 21,000 very different stories are showing. In the northeast cases continue to come down dramatically. In the midwest they are as well. In the south and west, weirdly the hottest parts of the country, they are starting to tick up kwietsquite a bit. States of concern are texas, arizona and North Carolina hospitalizations are rising. Texas 2287 people are hospitalized arizona almost 1500 and North Carolina approaching 800 people. All of those increasing just in the last week or so. Florida is also a state of concern. It doesnt report hospitalizations in exactly the same way but case count has been rising kwiee ining quite a bit. As has the percent of positive tests being reported showing that Community Spread is happening. In terms of the hot spots, seeing the fastest case doubling time in the country, phoenix, tam tampa, charlotte, North Carolina, austin, texas and Central Washington we were on a Conference Call a zoom Conference Call which encapsulate tampa. You can hear the alarm they were dealing with they had a Public Comment section where there were a lot of differing views on what should be going on back over to you all right thank you very much. Coming up, well have more on these volatile market moves days like this were near the highs of the session where the fed says it will buy individual Corporate Bonds. The amount is relatively small which is the intention that gets the attention. Industries leading the way in the equity market. All of the various sectors are in the green now health care has not been but is now. How much does the fate of the market rely on economic recovery as reopenings across the country face a number of hurdles a top onist llecomwi weigh in with thoughts. Much more power lunch is coming up next. Need better sleep . Try natures bounty sleep3, a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. What do you look for when i want free access to research. Yep, td ameritrades got that. Free access to every platform. Mhm, yeah, that too. I dont want any trade minimums. Yeah, i totally agree, they dont have any of those. I want to know what im paying upfront. Yes, absolutely. Do you just say yes to everything . Hm. Well i say no to kale. Mm. Yeah, they say if you blanch it its better, but that seems like a lot of work. Now offering zero commissions on online trades. We charge you less so you have more to invest. The tou is up 272 points for nearly a 1,000 point swing off the lows of the session earlier this morning this afternoon some new information the Federal Reserve expanding its purchases of corporate debt to include individual bonds we have the details on that. That might have accounted for the last leg higher. Boeing, the airlines are also leading the way liar Morgan Stanley is doubling down on its call for a v shaped recovery in gna new note gdp will snap back to precoronavirus numbers. My next guest says its not that simple for more lets welcome in joe davis. Welcome back the first part of it is pretty steep and we start to level out. Its always going to be a two speed recovery i think the operative word is recove recovery were bouncing off of some pretty extreme lows. I think if youre a Business Leader you think in terms of what was my revenue or level of activity before covid19 when you look at that frame and lens and i think were talking about more of a u shape recovery somewhat wha is on your dashboard now. These have gotten just so out not out of whack. Theyre just so large and trying to figure out whats happening state by state even. You can come to some very different conclusions. Now we have clusters and concerns about people pulling back on activity whats your best read on the sta state of the economy now you have to look at two angles more so ever in my career is the health angle were drawing as much from epidemiology than from economics. We will clearly have a second wave and see some increases infections but we will not need to see or experience this sort of nation wide shutdown and activity how rit sent are consumers lets talk about some of the policy response, fiscal and monetary especially as we get confirmation day by day of the importance of the feds presence in these markets with contacts that the policy response of the fed and congress, i would loop in other countries around the world to that matter. Its been bold and swift i think theres some targeted measures that should be concerned. Thats not a criticism thats more of a reality i think there are some options that congress should consider around the Employee Retention credit and see about new automatic stabilizers. In some unfortunate scenario where the Unemployment Rate is not coming down in the second half of the year but for whatever reason we start to come up again because of a second wave, you can think about taking effective economic insurance on the recovery given how strong responses have been to date interesting by that quickly, you would mean jobless claims or what other stabilizers look like . You could do is have the employment retention credit. What you could do is congress could consider attacking to that and Unemployment Rate is jobless claims bovr a certain thresholds you wouldnt need to spend the money. That way you dont force any policy maker to have any perfect foresight thats unreasonable. You let the recovery evolve. Thanks very much. Love the ideas we appreciate it thanks for having me. Ty thank you very much still ahead, semistocks are higher today but after hitting record highs, at the beginning of month, they are all 5 from those levels could this be your moment to dip into these stocks. Well talk to the owner about how he is ambulancing reopenings can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Twhile the future of work professional or consultant remains a question mark, one thing is certain reopening will be a journey. Thats why salesforce created work. Com to help at every step of the process, with tools like manual Contact Tracing to help prevent one from becoming three and three from becoming more. While displaying Key Information in one place on a Customer Relationship platform you trust. Because heres one more thing were sure of. Relationships are the heart of business. So lets tackle this together. Yeah yyeah yeah hey, hey. Welcome back chip makers making a big difference today the the group still under performing are there any break out names . Lets bring in the trading nation team. These names play a digital role yet they under performed this year why do you think that is thats a great point. In space, were in the middle of technological refr lugs. I think its company specific. Were bullish on Companies Like intel and nvidia because, number one, we have a huge reliance in demand for gadgets and games everything we live our lives with these companies are also able to be innovative to create new product and to evolve with the times. The evolution of working from home and everything we need for mobile technology, youre just going to see these companies and probably mostly in space continue to be strong for the foreseeable future whats the topic . This one of our top ideas in general as far as where to be invested as we think about the overhappen between high momentum and high beta with think we are seeing a resujs of a 20year break out in trend. Pick any of these names, well pick one, asml one of the first stocks to break above its february peak. Great looking chart. All right well see if youre right. Thanks for joining us. Led to our website or follow us on twitter at trading nation back to you. The sports world is trying to get back to normal. This weekend nascar hosted about 1,000 socially distanced fans. The team sport seem to be hitting a roadblock. Well ask character kisacramentr about the efforts to improve diversity in silicon valley. Stay with us just over a year ago, i was drowning in credit card debt. Sofi helped me pay off twentythree thousand dollars of credit card debt. They helped me consolidate all of that into one low monthly payment. They make you feel like its an honor for them to help you out. I went from sleepless nights to getting my money right. So thank you. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back im sue herera the Supreme Court has rejected the trump administrations efforts to throw out a california immigrant sanctuary law that limits Police Cooperation with federal immigration authorities. You can go do cnbc. Com for more on todays big cases and decisions. Atlantas mayor says its quote abun dantsly clear theres a need to review the Police Departments use of force and training of its officers bottoms said she will make a significant Public Safety announcement later today the pilot of a fighter yet that crashed into the north sea is dead. The cause remains unclear. I will send it back do you thank you very much. A dow had been down. That pushed stocks to the highs of the session the dow up 220 points. Thats almost a thousands point swing. The s p is up more than 1 a and the nasdaq is up 1. 5 . Kelly. This was the busiest sports weekend we have seen in about three months that was a Golf Tournament and ufc fights getting the major teams sports back is looking to be a lot more dhaj i challenging. Many sports leagues are struggling to restart. Baseballs public fight took an ugly turn as the Players Union gave up on negotiating with the owners commissioner says 100 , 100 there will be a season but the clock is ticking that season might be a very, very short one owners have a call today to discuss next steps as the Players Union city deadline of tonight to be told when and where to play. The Health Restrictions imposed on them may be impossible to comply with this season. There are more and more players who tested positive for coronavirus, including start Dallas Cowboys running back Ezekiel Elliot the Orlando Bubble is facing resistance as many players are concerned about their health and being separated from their families others said being in the bubble may take away from their recent social justice efts. The nba said any player can skip the return if they want. Theyll just simply not be paid. Back to you. Thank you very much here to weigh in on the nba and safety concerns being raised by some of the players is the owner of the sacramento kings. Invest in early stage start ups. Well get thoughts on tech in a moment are you concerned that the plan may be running onto the rocks. I believe the nba has really thought this through well. They consulted world experts its going to be safer to be in a bubble in orlando than to stay home and go to a Grocery Store this has been very well thought through. I feel very confident that we will be in orlando in a few weeks. One of the concerns i have heard expressed is while the players will be in a double quarantined in a place disney, not known for some of the entertainment that nba players might enjoy but that employees, the people in the stadium, the people in the resort they will be able to leave the bubble and bring virus back in. Of course nothing will ever be 100 foolproof. When you walk into a Grocery Store youre taking hances were going to be safer in orlando than most people would be at home we also looked at the what if scenari scenarios. We have thought this through and what happens if playing it safe. We looked at all of these possible scenarios its been a very long process. You have an kpietsi inexciti and coming team. Do you expect all of your players will attend and go do work in july yes players love to compete. They love to play hoops. They tell you to be there. I know that some are concerned about the social unrest and social issues and social justice. You know, Martin Luther king said lifes most per sis tent and you are jents question is concern for others were blessed to be in a league with leadership. Really do care about those issues from our perspective they have always known its because in basketball and they will use this platform to make the world better i want to come back to what the future of the nba looks like in a world where there will be no fans there summer and may not be fans when you resume for the 2021 season. Who knows. Well talk l thckle that in a m. I dont want to let you out of your thauoughts on where the economy is are you surprised its been technology thats led the way is this that would seem to make sense based on what were going through. Tyler, the next 10 or 15 years, its going to be more Wealth Creation than we have ever seen during such a stretch of time in Human History right now is the best of times, its the worst of times. If youre on the right side of lift and the right side of Technology Evolution landscape then it will be the best of times. What i predict is in a dozen years, more than half of the s p 500 will be replaced by new companies, by digital companies. Companies that are shifting fro the digital age. Theres no surprise here tech is leading the way. Tech will continue to lead the way and theres unprecedented wealth recreation opportunities ahead of us. In some ways covid19 had catapulted us into 2023. We have three years of trends happening in three months so this is a time to be investing and some of the greatest companies were created in times of crisis. As all of this is happening, were investing in Companies Companies that are being in homes and garages and through the use of zoom. These company, im confident in 10, 15 years will be part of the s p 500. When you think a back to the origins of apple, the origins of microsoft, that was in a time when the u. S. Economy was nowhere near where it was just a few months ago in terms of prosperity and Wealth Creation tell us about your relationship with the university of california are you coinvesting in Portfolio Companies that you have. Give us an example or two. California is the Largest Research party in terms of areas they hit and so its incredible Research Platform be able to cut it and create new platforms. Well be able to eliminate genetic disorders. We are investing in that new materials. Were seeing these trillion tlar industries emerge out of thin air that didnt exist a few years ago. Were also seeing massive disruptions. Our company mothership fprovides the last plimile of those logistics. We have invest in a company that will get through the 100 million in revenue faster than any social revenue than history. This is Identity Network it certifies nurses, doctors, emergency technicians. How do you know some of these really qualified were seeing unprecedented opportunity. Part of whats exciting is that we get first dips on all of these Incredible Technologies coming out of the research i really take your point that the covid situation has accelerated a trend in place accelerates the introduction of technologies and workplaces and homes and into companies we couldnt have anticipated. Let me come back to the nba and talk about the fanless experience i say that in recognizing you in your new arena probably have done more than anybody to create a low touch kind of environment. You have check out free swag shops and things like that and ticketless entry and so on and so forth talk to me a bit about that and also about the idea of how much it hurts you and your revenue picture and your bottom line if, lets say, in 2021 you cant have fans in the stands or only a third of fathe fans that you would have its a clear hit. If you cant have concepts and gains, then that is a huge hit to us. I believe in the league or the American People or the leadership that we have and afterall more than 99 of fans enjoy the game without coming to the arena. What youre going to see is an acceleration of technology and what youre going to see is the use of ar, vr, other technologies we right now will be putting in intels true view system the latest versions of that where ever fan would choose what camera angle, what view they want to look at. Allow do you set up fan checking into the arena we have a Mission Control that is all fiction for every Single Person that comes to the arena we have sensors. As you said you have a store where you can walk in, walk out. We dont have to touch anything or talk to anyone. All of that elimination of fiction effort is actually now suited for minimizing the risk of sickness. Fascinating were also experimenting with the kings with a technology thats a breathalyzer. Youll be able to go and test whether someone has the virus by looking through a scope. We have no doubt that over time fans will be back. Fascinating stuff thank you so much for being with us today kelly. Stocks making a big comeback today. The dow up nearly 200 points after being down more than 700 well have more on these wild swings up next, were looking at the days biggest individual movers, including hertz. Stayitus you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. 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. Makes it beautiful. State of the Art Technology makes it brilliant. The lexus nx experience the crossover in its most visionary form. Experience amazing at your lexus dealer. Try natures bounty sleep3, a unique trilayer supplement that calms you, helps you fall asleep faster and stay asleep longer great sleep comes naturally with sleep3. Only from natures bounty. music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Welcome back docusign is hitting all time highs today. Lets get to more behind the move chick out the stock moving stharply higher here fresh all time high in todays trade. The provider of electronic signature technology, the news here is its going to be joining the nasdaq 100 on june 22nd,ein. Its not just that name alone. Just out others we want to highlight. All ripping higher and more broadly, you look at the igv thats the etf that tracks the softs ware names continues to build on its record run and now rallied more than 50 from its march lows its on track from its best quarter year since 2001. Back do you. All right thanks very much all right. Coming up, a disturbing story involving ebay wait until you hear what employees are accused of doing to silence kricritics. Thats next. Thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Yeah yyeah yeah hey, hey docusign a very unusual story developing six former ebay Security Officers charged by the fbi with stalking lets get that story the things they are alleged to have done are very disturbing. Tell us about it they are indeed, tyler. So im just going to show you these items taken from the filing that were sent to a couple who run an online newsletter that was apparently critical of ebay so what youre going to see here, there is a halloween mask in the middle of a dead pigs head a book of advice on surviving the loss of a spouse, and a hustler magazine mailed not to the couple but to their next door neighbors with their names on it. Now according to the document, there was also a box of live cockroaches, a funeral wreath and anonymous threatening messages federal prosecutors say that they were sent by six former ebay Security Officers in an effort to stifle criticism that they thought was coming from the couples newsletter. Now that was apparently only part of the strategy though. The ebay employees are accused of then notifying the couple of the harassment and offering help what prosecutors are calling a white knight strategy. Now ebay earlier responded today saying that was notified of the actions by Law Enforcement in august of 2019 they fired the employees and launched their own internal investigation. Guys, the reason that ebay says that it didnt address the matter publicly until now is they said that they didnt want to interfere with the governments investigation has anybody been charged in it this investigation . Not yet these are the charges that are laid out i also want to mention the statement that came from ebay does mention the ceo at the time at ebay. They said they found no evidence that he authorized these actions or knew about them beforehand. But they did say that there was some inappropriate communication. So something to the end in that perhaps. Back to you. All right thank you. Kelly the dow transport has a nice rebound off their recent lows. Theyre still 20 down from the gh week his. Will the rebound continue . Will they reclaim the old highs . Thats next. On a scale not seen in decades. An estimated 54 million americans will struggle with hunger. With 200 food banks and 60,000 meal programs, feeding america is the largest hungerrelief organization in the country. Join Morgan Stanley in supporting feeding america and your local Community Food bank. Im an associate here at amazon. Step onto the blue line, sir. This device is giving us an Accurate Temperature check. Youre good to go. I have to take care of my coworkers. Thats how i am. I have a son, and he said, one day im gonna be like you, im gonna help people. Youre good to go, maam. I hope so. This is my passion. If i can take of everyone who is sick out there, i would do it in a heartbeat. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Yeah yyeah yeah hey, hey welcome back the dow transports are off the recent highs having rebounded off the march lows along with the broader markets, lets bring in the principal and managing partner of broughten capital should we expect the transports to just be late to the game . Do you think theyll remain at this lower level i think transports will continue to do what theyve always done. And that is that they will overall lead really more importantly, they lead in the specific segments that are reflective of what is happening in the underlying goods flow the things that are being moved through the economy. So on accident the transport stocks seem to lead. That is symptomatic of what is happening in the actual freight flows both within our country as well as globally. So what do you see . We can follow air traver tsa travelers have gone from under 90,000 to half a million again, coming off extremely low levels what about on kind of the commercial side. What are you seeing . Will with, yeah we really i will first say, we dont Pay Attention to passenger traffic because thats not the core of the whats the economic predictive indicator here its moving the parts and pieces of the economy the computer chips, the iphones, you name it. Thats what where the value is 1 of the weight of the global economy, more than 15 of the value of the global economy. Thats where we focus. Thats where were seeing the beginnings of a rebound. Were seeing it especially in asia Inbound International inbound into shanghai and other places where they ship the little parts and pieces that they get assembled into things that then get shipped here it has gone positive in may. People that move technology, ie, the fedex and xpos of the world. Thats what were going to do. Were going to invest in technology to respond to every single response i hear out there to the coronavirus is more Technology Investment and application and as a society, were willing to accept those changes. Thats why were very, very bullish where were going in the next, two three years. Globally but especially in the u. S. Are there any parts of the transport sector you warn people away from . There are some segments were worried about. Asia pacific is great. U. S. Looks better every day. European eurozone is down not only worse than it was in the 0809 time frame but a two year basis, down 35 to the point that we worry about the stresses it puts on the political system there so no signs of a rebound there other economy thats are very commodity driven, we worry about those. With the exception of a few commodities, most have been real dwran out behind the woodshed. So if your economy and political power, look, weve had elegant example after elegant example of what kind of a government we have both in the u. S. And abroad at all levels of government. And as those people reveal themselves to be nothing more than cats, if you will, were seeing the populous say theyve had enough and protest yeah. No, absolutely i think your point in general about the rebound youre picking up in asia is interesting to everybody and how europe is not quite there yet. Don, thanks very much. We appreciate it always a pleasure tyler, good to see you. Well catch you tomorrow right here on power lunch. Well see you closing bell starts right now. Thank you very much welcome to the closing bell, everyone im wilfred frost. The dow was down 700 points at the open it is now up over 150 points lets have a look at what is driving the action coronavirus cases continue to rise in parts of the United States and beijing reinstates some shutdown restrictions thats why we opened in the red. The but the fed says it will buy individual Corporate Bonds in a shot of more stimulus for the market that is one of the factors that has taken us into the green. By the way, tech leading the rally. The nasdaq outperforming up over 1. 5 as we stand, were 59 minutes until the close of
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