Transcripts For FBC The Claman Countdown 20240712

Have mccabe, you have strzok, you have his lover lisa page, you have all of these people running around. You have brennan and clapper who lied to congress. You have many many people, you have people that changed documents going into the fisa courts, and its a terrible thing and this is an investigation that they said should have ended before it started. It shouldnt have started and if it did, it should have ended immediately because they found as you know as well as i do, they found nothing initially but it went on for two years or longer. And im getting rave reviews for what i did for roger stone and he frankly is going to go and now appeal his case. He had a jury forewoman who hated roger stone and who hated probably me but she went on a false pretense and he wasnt given a fair trial, he wasnt its not a fair trial, he wasnt given another trial. He should have been given another trial. I wont say more. I wont talk about the judge. Im not going why would i ever talk about a judge. But this was a judge that gave i believe solitary confinement to paul manafort. Al capone didnt have solitary confinement. So these are things that happened and if you look at president bush, president clinton, president obama, take a look at what they did. Frankly, its a very unfair roger stone was treated very unfairly in my opinion and so were many others on this stied. In the meantime you have the other ones who are admitted lying they admitted they lied before congress, they leaked, they leaked classified information which is something you just cant do and what are they doing. So well see what happens. But no, we are getting rave reviews for what i did. Okay. Reporter are you going to be able to hold the convention in jacksonville with all this virus spreading . We are going to see it built up a little bit but we are going to do something that will be great. We think we are doing very well. We had some poll numbers a little while ago that are great. You know, its the same story. Its suppression polls that we had in 2016, phony polls. Fake news phony polls, same thing. We are doing very well. We are doing well in georgia. We are doing well in texas. I read where i was one point up in texas. Not one point up in texas. We are many points up. I saved the oil industry. Two months ago i saved the oil industry. They would have been i created it, we became number one, we have millions of jobs and we saved it so texas is not going to have to let go of millions and millions of people. Oklahoma and north dakota, many states, we have we are at 40 a barrel, yet you can buy gasoline for under 2. Nobodys ever seen like that. So we have the Biggest Energy in the world, we are number one in oil as you know, oil and gas by far. We are now number one in the world. And we would have had millions of people out of work. I saved it. Then they say im leading by one point in texas. They said it last time, too. They said texas is too close to call. This was like three months before the election. Then i won texas in a blowout. They called it the minute the polls closed. They said that about utah. They said that about georgia. They said the same thing. That georgia is oh, its too close, they will never be able to determine, well have to wait until election night. On election night, two seconds after the poll closed they called georgia. So you know, its the same thing. We have the same thing. They are phony polls, they are suppression polls but to think that after saving the oil and gas business, and millions and millions of jobs, im leading texas by one point, i dont think so. Go ahead. Reporter china phase 1 deal still intact . Its intact. Its intact. I think what china has done to the world with what took place, the china plague, you can call it the china virus, you can call it whatever you want to call it, about 20 different names, what they did to the world should not be forgotten. But its intact. Theyre buying. Whether they buy or not, thats up to them. They are buying. Reporter los angeles Just Announced that they are delaying the opening of their schools. New york already said they were going to delay them. Other School Districts are giving parents the choice whether to send their kids to school or not. What do you tell parents who look at this, look at arizona where a School Teacher recently died teaching summer school, parents who are worried about the safety of their children in Public School . Schools should be opened. Schools should be opened. Those kids want to go to school. You are losing a lot of lives by keeping things closed. We did the right thing. We saved millions of lives. We saved millions of lives when we did the initial closure. Had we not done what we did, we would have had mike and i were talking about it before, two to three million lives lost but we did that so we are at about 135,000, well be somewhat higher than that by the time it ends and again, the vaccines are happening, the therapeutics are happening but im not even talking about that. So well be somewhat higher but we would have lost two million, three million lives had we not done it. Now we understand there are certain vulnerabilities, young children, i was with, talking to governor murphy and they have thousands of lives, i wont even say how many, just thousands of lives, hard to believe, in new jersey and he said there was only one life that was 18 or younger, one person died and that was a person, a young man that had some medical difficulty. So when you think of that, with thousands of lives, and you have one person that was under 18, thats something. That tells you for some reason i guess the immune system is much stronger with young people than it is for others. So we have to watch the group that does have the difficulty, does have the problem. We all know what that is. We all know who they are, especially if they have a medical problem. If they have a medical problem, diabetes or heart or anything, its a big problem. But we are being very careful. But we have to open the schools. Would you agree with that . Do you agree . Yeah. We have to open the schools. We have to get them open. And i think theres a lot of politics going along. I think they think they will do better if they can keep the schools closed in the election. I dont think its going to help them frankly but i think they feel that by keeping schools closed, thats a bad thing for the country and therefore, thats a good thing for them. But theyre the ones whose cities burning. Can you imagine if the country was run like chicago and like new york and like some of these other democrat super radical left cities are run. You wouldnt have a country for very long. The economy would crash. So we just set a brand new record today on nasdaq, again, this is now i think the 18th time since, this is since after the problem so we have a new stock market high for nasdaq and the other ones are getting very close. When i came here, the stock market was up almost 500 points. Today the economy is rebuilding, jobs are being produced at a record pace. We have never had a pace like this. And i will tell you, if biden got in, this economy would be destroyed. You notice, he was in office for 48 years and what he did was not great. Almost every decision was the wrong decision. Now hes going to come in and try and help us. We didnt need any help. We built the greatest economy in history. Greatest economy weve ever had, the greatest economy the world has ever seen. Then the plague came in from china and we did the right thing, we had to close it down. Now were opening it up. He cant do it. He doesnt have the capability to do it. Thank you all very much. I appreciate it. Thank you. Good luck with everything. Liz President Trump in the east room of the white house fielding questions on a number of subjects. He did double down on his belief that schools should open in the fall. This as news broke in just the last hour, californias largest public School Districts, los angeles and san diego, say instruction will go completely online in september as coronavirus cases surge across the state. Youre talking about 825,000 students. He did not exactly answer the question that came at about three minutes after the hour about whether the Republican National committee will be able to hold the Rnc Convention in jacksonville, florida, after that state just broke the National Record for new single day covid cases. Either way, we have had a pretty interesting rally here. Just a few hours ago we had the bulls in a frenzied run to the finish. Then we sold off a bit. Now we do continue to see some action here that is positive. The dow is still up 280 points but the nasdaq has turned negative after having been higher by about 207 points. This was going to be its fourth Straight Record close but we still have 51 minutes before the close and this has been such an interesting day that we couldnt really say right now whether we might not see it punch back up to positive numbers here. We do have Second Quarter earnings season set to kick off this week. Pricetoearnings ratios which measure the value of a stock by comparing its per share price with just how much the companys actually earning, well, they are going absolutely parabolic at this hour. That is sometimes a warning signal that there may be major froth in the markets. We want to show you some of these numbers at this hour. Zoom, for example, zooms pe has hit 1,602. Okay. If you dont really know what that means, that means not making enough money to justify that. Dexcom is a company seeing a pe ratio of 276. And biomarin at 205. What are the hidden messages in these rich ratios that by the way are being seen over most of the other sectors . Lets get to our floor show traders. Tom hayes and phil flynn. Tom, i will start with you. The Semiconductor Sector has had some real doozies here. Nvidia, nxp semiconductor, advanced microdevices. Look at amd, 134 pricetoearnings ratio. Just so you know, it was about a year ago that pe ratios were around 20. So are investors paying too much if they buy right now . Well, liz, if you look, semiconductors are priced for perfection. Banks are priced for the apocalypse. Neither of those things will probably happen. This is the epic battle between value and growth and the money moves into growth when people are expecting a slower economy. So when we see cases spike up and people fear regional closings, you see money moving to tech and semiconductors and people will pay whatever they have to to find those small pockets of growth. But when you look at may, when the recovery was going and cases were coming down, we had a huge rally in cyclicals and value. Historically cyclicals and value outperform coming out of recessions, number one, and number two, when you look one to two years out for people paying 100 times earnings, it usually doesnt end very well. I just look at stalwarts in the market like buffett bought 5 billion of his stock in the last few weeks and hes done two big deals in cyclicals recently. Liz yeah. I think i get nervous, though, phil, and tom is right in certain regards, but it isnt just technology. Retail pe ratios are very high. You can look at lululemon, walgreen boots alliance, paypal. These are extraordinarily rich as well. Rich bernstein actually, an analyst people read about, he had made this interesting comment where he said thats like paying, buying nissan at rolls royce prices. You wouldnt really do that, would you, phil . Depends on what year the nissan is. If you are buying a 1960s nissan it might be a good deal. In other words, you have to keep it in perspective and compare what youre looking at. One of the things you have to remember when you are looking at these pe ratios, we are looking at pe ratios with the biggest amount of Global Economic stimulus ever. I mean, we are talking 10 trillion and counting of stimulus. We are talking about historically low Interest Rates for an eternity or what could be an eternity. Any time you look at that and try to look at the value of these stocks and these pricetoearnings in todays dollars, you look at where they are going to be two years from now, when you might have a better economy, then maybe we are not so much out of line. Thats why these things look so high. You look at some of those individual stocks, they all have their own individual problems. I mean, ebay has done fantastic, right. Everybody is shopping at home. Ebays a big name. You look at lululemon, oh, my gosh, the stock tanked. I used to like sales. I guess its bad for the stock. Then you look at walgreens. Walgreens obviously have laid off a lot of people, they are restructuring. They have to compete in an online world. All those stocks have their own individual issues. If you look at them as a group, its all about the economic whirlwinds. Liz i know, i just want to quickly check apple pe because that one is actually a little bit more down to earth and yes, apple pe at the moment is 31. You know, makes me wonder if these stocks arent getting too expensive. Guys, thank you so much. We have a compressed show because the president was talking at the top. Dow jones industrials up 301 points. We just mentioned the school year. Obviously floundering a bit. There are huge question marks, a vaccine cannot come soon enough, and maybe it might. We have shares of pfizer and american depositary receipts of biontech getting a covid bump after the fda fast tracked two covid19 vaccines that both are working on. Weve got pfizer up 4. 6 , biontech is up 11 . Elsewhere, merger monday has been lighting the fuse of our pop stocks. Semiconductor maker Analog Devices buying rival maxim for 21 billion. They are betting the all stock deal will boost market share in both 5g and automotive chip markets. Cars right now are like iphones on wheels at this point. So the 78. 34 a share offer is a 22 premium of maxims friday close. That looks to be certainly generous because the stock of maxim right now is at 70. 73. All right. Have you stood in a line at costco lately . Maybe you should line up for the stock. Today its not really doing that much, but it is very close to its 52week high and at this hour, Atlantic Equities has initiated coverage with an overweight rating and a 375 price target. Atlantic believes the warehouse retailer can count on stable profits thanks to membership fees. Costco down a third of a percent right now. Elon musk scrambling over Warren Buffetts shoulders to climb another rung of the billionaire boys club, all tied to tesla stock which right now up 2. 25 , is hitting a new record. Its at 1,577 a share. A market cap now at more than 320 billion. Tesla now looking to enter the storied halls of the s p 500 but folks, just as tesla spikes, the competition is piling up. Yes, we talked about nikola and nio and workhorse. We have nikola and nio moving in opposite directions with nikola up about 1 . Workhorse is up 4. 5 . Here comes another one. Ev startup fisker poised to start its all electric ocean suv late next year and they also plan to go public. With a name like fisker ocean, arent you dying to know what it does . Tune in to the claman countdown tomorrow. The founder and renowned automotive designer Henrik Fisker will join me live. I want to see if its going to be like the spy who loved me delorean, right, that went into the water. It could swim. Can the ocean swim . We will ask henrik tomorrow. Dont miss it. To sports business and the washington redskins. The redskins got their name in 1933 and now the team today is calling an audible. The Team Announced it will retire the name redskins and logo following pressure campaigns from major sponsors including a threat from fed ex to pull out early from a lucrative stadium naming rights deal that it had entered. The team has not set a timeline as to when a new name and logo will be revealed and its unclear if the name change can be made in time for washingtons september 13th season opener. What will it require . New helmets, new uniforms, replacing signage across the teams stadium and practice facilities, even changing the clubs official address which is currently listed on redskins park drive. Quick check of the dow, up 281 points. Still a rally with the dow and s p. From football to hockey, check it out. Two of the biggest rivals in the National Hockey league, who are you thinking about, the Boston Bruins and toronto maple leafs, back on the ice today as the nhl kicked off phase three of its reopening plan, allowing Training Camps to fully reopen. But as soon as they did it, a harsh reality set in. This morning, the Pittsburgh Penguins announced they had to pull nine players out of practice. The nine apparently had potential exposure to an individual who tested positive for the coronavirus. The team says the players cannot participate until they are deemed safe and healthy. To nhl commissioner gary bettman who is dealing with all of this. He joins us live. Gary, thank you for taking time out on the first day of practice restarting and officially beginning. What do you make first of this news out of the penguins camp . What do i make out of it, liz, its great to be with you, as always, is our protocols are sound and we are doing the things we need to do to protect the health and wellbeing of our players. Actually, i think it was a tertiary exposure. I think somebody was exposed to somebody who wasnt in the nhl and that person then was in contact with a number of players. This is really a case of the penguins being very careful and making sure that we are doing everything we can to be as safe as possible. Obviously, in the environment were all living in, there may be some positive tests. We understand the risks. But the protocols we have worked out with health authorities, with our players, the Players Association, we think are very sound and we have made the appropriate medical people very comfortable with them. So its doing what its supposed to do. Liz i think thats great, but i have to ask you about i guess the magic number. Major League Soccer had to remove an entire team, fc dallas, from their playoffs after ten of their players and a coach tested positive for covid19. What is the magic number that you have set for nhl teams, where a team will have to be disqualified due to players testing positive . Or being exposed . Theres a big difference between what happened in mls and this situation. Mls, they had, what, ten positive tests. This is all about exposure. Nobody yet has tested positive. We are going to liz but is there a number . Look, the number will be determined by the circumstances and what the medical people tell us is appropriate. If you have an occasional test, thats one thing. If you have an outbreak, thats something else. Thats something that we are going to let the medical people, the health authorities, guide us on. So you dont have to look for the magic number. You have to have confidence in the protocols and the procedures that were following based on best medical advice that we can get. You know, part of whats getting lost in all of this, testing is important and the protocols are important, and health and safety, but what we have managed to do over the last 12 weeks in addition to the protocol, we were able with our Players Association to agree on a return to play scenario, we dealt with our critical days calendar, we dealt with transition rules and perhaps as important, if not more so, is we have agreed to an extension of our collective Bargaining Agreement so that we know that we have six [ inaudible ] going forward. Its that bundle thats as important as anything else than the return to play although we are excited about the return to play obviously. Liz well, yeah. The collective Bargaining Agreement gives everybody some breathing room. We were definitely going to focus what do you think, you are dealing with a rookie here . You know im a huge hockey fan. Gary, i want to talk about the actual plan here. Heres the structure. August 1st will be the beginning of play. Two cities, edmonton and toronto, i find that very responsible to be in canada because right now, the nba is dealing with the situation where they are in a bubble in florida, in orlando, and florida just had its largest number of single day cases. Your games will have an nhl hygiene officer in each hub, daily tests. Will families be able to visit the players, wives, children, et cetera . Certainly not in the play in round and the first two rounds. A number of weeks ago when we agreed with our players on what the right return to play structure would be, we got a lot of commentary about why didnt we designate the hub cities. We had ten clubs in their communities give us outstanding proposals as to how we could work all this out, and at the end of the day, we made the determination that we didnt want to make the decision until we absolutely had to because covid19 was liz changing. Changing, so by going to canada, we made the decision to go to the places that have the least covid19 in north america and that turned out in retrospect to be the right decision. But families, we are going to have a very tight bubble and its possible depending on the state of the world that when we get to the conference finals and the finals, that perhaps there can be some families in attendance at the games. I doubt in the bubble itself. But thats something that we can focus down the road. We should be fortunate enough to be having the opportunity to focus on it because that means everything we have planned for has gone well. Liz well, i will say i notice that there are two hotels in each hub city and the teams are spread across each of the two hotels in each city. I cannot believe, gary, that you put the flyers and the penguins at the same hotel. That is dangerous. You are just asking for trouble. These are extraordinary times. We all just have to be flexible and do the best we can. But youre talking like a true hockey fan and you know we love that. Liz of course. Gary, its great to see you. Thank you very much. Hope everybody stays healthy. Gary bettman, commissioner of the National Hockey league. Closing bell is ringing in 36 minutes. Folks, we are still up 261 points for the dow jones industrials. Little bit of angst here. The volatility index is up 3, not a huge deal but we are watching it. S p has turned negative by a fraction. Up next, malls in upstate new york throwing their doors open to the public this weekend. But did shoppers feel comfortable enough to return in the middle of a pandemic . The ceo of the largest privately owned mall operator in the northeast is about to tell you how the first weekend went. The claman countdown will be right back. Dont miss that. Ok thats 15 on top of what geico could already save you. So what are you waiting for . Idina menzel to sing your own theme song . Tara, tara, look at her go with a fresh cup of joe. Gettin down to work early following her dreams into taxidermy oh, its. Tax attorney. I read that wrong, oh yeeaaaah geico. Save an extra 15 percent when you switch by october 7th. Give it up for tara its like walking into the Chocolate Factory and you won a golden ticket. All of these are face masks. This looks like a bottle of vodka. But when we first got these, we were like whoa [laughing] my threeyearold, when we get a box delivered, screams mommys work mommys work. With this pandemic, safety is even more important to make sure we go home safe every single day. I was blessed to be part of building one of the greatest game shows in history. During that time, we handed out millions of dollars to thousands of contestants. And i thought, what if we paid the contestants their winnings in gold instead of cash and prizes . Back in 1976, we had a wonderful contestant named lee whose threeday winnings were valued at 12,850, and you know what . That was a pretty big haul back in 1976. So i wondered, what would have happened if lee had put 12,850 in cash and then put 12,850 in gold in a safe, just sitting there sidebyside from 1976 until now . Well, i went back and i ran the numbers, and what i found was amazing. We all know that 12,850 in cash would still be sitting there, but it would be worth a whole lot less than it was in 1976. But that 12,850 in gold, safely stored away, its worth 135,000 as of the taping of this commercial. Now, thats more than 10 times the original amount. And thats why ive been putting my money in Precious Metals for years, and i dont see any reason to stop now. [announcer] if youve bought gold in the past, or would like to learn more about why physical gold should be an important part of your portfolio, pick up the phone and call to receive the complete guide to buying gold, which will provide you important, neverseenbefore facts and information you should know about making gold, silver, and platinum purchases. If you call right now, you can also receive a copy of our new u. S. Gold report for 2020. Inside, youll find the top 25 reasons why you need to start owning gold today. With nearly two decades in business, over a billion dollars in transactions, and more than a half a million clients worldwide, u. S. Money reserve is one of the most dependable gold distributors in america. Liz attention, shoppers. The largest privately held mall operator in the northeast officially flung back open its doors this weekend as part of the phase 4 reopening timeline in new york state. Locations that have been shuttered since march, dark, no lights on, no sales, now up and running. But if they open it, did the people come . Lets find out. Joining me now from new york states largest mall, destiny usa in syracuse, is Pyramid Management group ceo stephen congel. Thank you for joining us. Great to have you. Well, did they come . Did they show up . Thank you for having me on. Im going to go ahead and take my mask off so you can hear me properly. But we are strictly enforcing mask requirements in our properties. Yes, people are coming. We were very pleasantly surprised at the number of people that came out and the number of stores that were able to open on such short notice, only 48 hours of notice. Liz tell me about what shoppers found. You had the mask requirements but what else . Sure. The mask requirements and the social distancing protocols are probably the two biggest changes that shoppers found when they came back to our centers over the weekend. Pretty Common Social distancing protocols per cdc guidance and we were very pleasantly surprised to see most people happily adhering to them. Liz they are really eager to get out and about and start shopping in person, being able to touch and feel stuff. Imagine that. Brick and mortar is suddenly a place people want to be. We have video of this and the crowds looked a little thin and tentative. Your regular, in fact, your most recent numbers we know we have were for annual retail sales of about 4 billion. Tell me, are you anywhere near that . Are you on track for anything like that for this year . Probably not for this year. We were closed for close to three months and that took a big bite out of our Top Line Sales across the portfolio this year. We are going to have to see. Its only been a couple of days for new york state. We have properties in massachusetts. Been about a month and we are seeing a nice rampup there but we will have to see what happens over the next few weeks to a couple months. Liz yeah. I understand that. A lot of people are simply tossing out part or much of this year because of this force majeur ecigs with the coronavir coronavirus. We know analysts predicted, they track retail closures, they project about 25 of americas malls will simply disappear within the next three to five years. Thats sort of ex the retail ice age with covid. You employ 20,000 people at your malls. Are you concerned about that . Sure. We are concerned about business every day. Our industry has gone through a great deal of change and transition. I like to think that we have embraced that long before coronavirus, long before the traditional retail troubles. We see shopping malls as something that needs to evolve and change. We were early adopters of entertainment, recreation, food and beverage, now adding hospitality, now adding residential. If you take a look at the principles of commercial real estate, we have great commercial real estate. Its up to us to put great attractions and venues in them. Liz my last question. Some of the anchor stores that you may or may not have, whether its jc penney or Neiman Marcus filing for bankruptcy, not to mention j. Crew, tuesday morning, there are a whole bunch of other ones. How much of an effect do you see that having on your business . You know, you have to look at some of the change as good. There are some retailers out there who didnt progress with the times and honestly, having them in your properties can be a real drag. It gives you the opportunity to change that space out into something new and exciting and something that brings people in, holds them in your property and attracts them from a Long Distance way and thats our business. Liz may the shoppers come and my daughters beginning syracuse in the fall so beware. She will be showing up with my credit card in hand. Were in trouble. Good to see you. Thank you very much. Thank you. Liz hell be happy to have her. I wont be when i see the bill. Closing bell ringing in 26 minutes. Apple closing in on 400 per share today as the s p is now down 19 points. We do have apple at 384. 26. Lets call it flat to slightly higher. Its hitting a new high and crossing a valuation of 1. 7 trillion after Morgan Stanley and wedbush boosted price targets ahead of earnings at the end of the month. Both citing upbeat iphone demand. Morgan stanley coming in at 419 and wedbushs dan ives boosting his price target to 450 from 425. Just turned negative. But its a 383 a share. While the earnings outlook looks rosy for apple, can the same be said for the biggest banks set to disclose covid quarter numbers tomorrow morning . Today, in advance of that, for you guys only, the top banking analyst in the nation is here to break down what he expects. Ge Gerard Cassidy is next. And etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. W ievery bathy itr bathr a om ta lled qlledckllly, felybeaufully,ll withwi lifet le et le ete et. E ta lled qlledckllly, go from old to new. From worn to wow. The beautiful bath youve always wanted, done right, installed by one expert technician, all in one day. Weve been creating moments like these for 35 years, and were here to help you get started. Book your free virtual or inhome Design Consultation today. Liz breaking news. If you are watching, the markets have just hit session lows. To the right, California Governor Gavin Newsom just now announcing literally a minute and 30 seconds ago that hes shutting down Indoor Dining, bars, movie theaters, zoos and museums statewide because he is seeing an alarming surge in covid19 cases. Included in this closure will be gyms, churches, and hair salons in parts of california, parts of california, but right now, he is announcing the shutdown of Indoor Dining, bars, movie theaters, zoos and movie theaters statewide because he is seeing the covid cases suddenly surge which is reflective, very similar to whats happening in states like florida. You can see the dow which had been higher by did i drop that dow thing . By i believe no, thats old. 322 points . Had been up 563 points. We have fumbled that now and the s p which had been higher by 9 is now negative and down about 21 points at last check there. The nasdaq which had been up 84 is also now in the negative. You can see from the intraday charts, thats why we are showing that. At the same time, we also got breaking news from apple, the tech titan says it does not expect u. S. Employees to return to their offices before the end of 2020. Of course, their headquarters are in cupertino, california. As for their nationwide and global business, apple does expect employees in asia and europe to return in the quote, coming months. Apple says its going to be shipping covid19 test kits to retail and corporate staff but again, you dont have employees returning according to apple before the end of 2020. Apple, too, has lost much of its gain here but is still up about i want to say. 4 here. You see it had dipped into slightly, looked like it was about to go negative. It has not yet at the moment. So a lot of breaking news. Thats why we are seeing intraday pretty much session lows. The dow is Still Holding on to gains of 128 points, though. So that certainly is something to be reportable and important. Banks and there are a lot of them in the dow, carry the lifeblood of capital which courses through our economy and of course, test results of their health are just coming back from the lab. 18 of the financial stocks in the s p 500 will report Second Quarter results beginning tomorrow, with jpmorgan chase, wells fargo and citigroup. Joining us now, top ranked banking analyst Gerard Cassidy, head of u. S. Bank equity strategy for rbc. Good to see you. Lets make it clear to our investment audience here, the actual picture 30,000 feet before we get into individual names, how are the banks going to do . I think what you are going to see is a tale of two cities tomorrow. The diversified banks with the Large Capital market businesses are going to post very strong results within Capital Markets. However, the commercial banking businesses of these same banks will put up very very large Loan Loss Provisions. We anticipate that the Second Quarter, the industry is going to put up significant Loan Loss Provisions equal to or exceeding the First Quarter which were very very high, because of the Economic Impact that covid19 has had on the u. S. Economy. So credit will be on everybodys mind but tomorrow, because its the largest banks, we will see strong numbers from Capital Markets and the second area is Residential Mortgage lending, another strong area this quarter. Liz yeah. You know, wells fargo is one of the biggest when it comes to all forms of lending. Very interested to know what you are hearing when you talk about loan losses. Im very interested in defaults. At what point are you starting to see defaults begin to pile up on each other and how worried are you about that . It is really the question to ask, because when you take a look at credit quality, it is clearly the number one issue investors look at. As you might imagine, in an economic contraction, particularly one as severe as we have been through in the Second Quarter, these defaults are certainly going to rise. When you take a look at the forbearance agreements, these are indications of borrowers in distress, presently amongst Residential Mortgage borrowers, they run 8 to 9 . At wells they are slightly north of that. We are going to see some interesting numbers but the real challenge on the defaults turning into credit losses will come at the end of the year, because of the way the forbearance agreements work. But the provisioning, the money set aside for problems will take that took place in the First Quarter and will take place in the Second Quarter due to new accounting regulations. Liz okay. But in the end, what we have seen so far is a promise that appears to be really steadfast by the Federal Reserve and Jerome Powell that they will keep the fed fire hose of cash open and flowing. Any time they start to see problems with the financial plumbing, they are going to keep throwing money at it. Is there a point that concerns you where we are really not being able to judge these stocks mark to market because its very much skewed by what the fed is doing . I think you summed it up well. The fed has created an artificial floor because they have expanded their Balance Sheet from over 4 trillion which by the way, when you turn back the clock and you look at the fed Balance Sheet in 2007, it was about 700 billion. They expanded it to get us through the crisis in 0809, up to about 4 trillion, now its just north of 7 trillion and we anticipate it could go higher. But what they have done is they have flooded the markets with liquidity and this has supported prices and this has contributed to the Great Movement we have seen since march 23rd in u. S. Equity prices. They have certainly brought down the spreads which is the main focus of why they did it so the spread is below where it was when we started this crisis. Liz we would love to have you back. Please join us again. Thank you. Liz thank you so much. We do have stocks hitting session lows after a latebreaking announcement by the state of california of a massive retrenchment. More closures, businesses will be shut again due to covid19 cases surging. Dow is still up 114 but s p and nasdaq are now down with the nasdaq losing the most here, down 149 points or 1. 5 . Well be right back. 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. Whats going on in Corporate America and what investors are believing is going on in Corporate America. The message to you dont trade because you think youre gonna to get rich quick. Because you. Liz a dramatic 500point swing for the dow, the markets have lost steam. The dow is still up 38 but it has fumbled 500 points of its gains after california Just Announced through its governor that they will have to close movie theaters, Indoor Dining and more. It is a retrenchment of what was supposed to be a very optimistic reopening. They are starting to see covid cases spike once again. We do have the s p down 26 after having been up nine. We have the nasdaq which is now down 202 fumbling all 84 points of its gains and as you see, much more. Can we flip it over to the volatility or fear index . Because im looking at that and it, too, intraday is spiking here. We do have it now up 17 . So at the moment, we are watching this market breathing and heaving. We are keeping an eye on it for you. In the meantime, weve got to talk about chipotle. Ticker symbol cmg. It may have been trying to spice things up with its new announ announcement but shares in the red after the food chain said it will be testing a new plantbased menu option that chipotle says has been a top request from customers. But just like the guac, its going to cost you extra. Cheryl casone, we should also point out that with chipotle down 2. 5 , much of that is just following the market down. Cheryl it is. This has been kind of a comeback story for chipotle. By the way, my name is cheryl casone. Im a cauliflower rights addict. Im going on the record. Thats the new offering. Liz okay. Cheryl it could be a game changer. Yeah, really. Okay. Extra two bucks, youre right. They will claharge you but you n switch out white or brown rice for cilantro lime cauliflower rice. They are testing it now. It starts wednesday. Its meant to attract or satisfy customers on the paleo or 30 meal plan where basically simple carbs are bad. They have already had success with their lifestyle bowls, same concept. At first its only going to be 55 locations, colorado, wisconsin, they are offer it there, but my guess, it wont be for long. As you point out, a lot of customers are already requesting this. In fact, one out of three new menu item requests is cauliflower rice. The ceo talked about new items back in april but obviously, the pandemic has slowed his plans to do this. As you mentioned, the stock is under pressure again, though, thats kind of a market story. Its actually up 34 year to date. Liz yeah. Cheryl, you worked in california, just of course as i did, although you were on air and i was an intern back in the kcbs channel 2. We are getting more on whats going on in california, because it is moving the markets. The dow has now turned negative, down eight points. Heres what we know. 30 counties in the state of california now required to close indoor operations of fitness centers, churches, places of worship, offices for noncritical sectors, personal care services, hair salons, barber shops and malls. So as we watch all of this develop, the dow is continuing to tumble even further and down 11 doesnt look so bad but when you had been up 543 points, not so much. We are keeping an eye on it with six minutes to go before the closing bell rings. You may not be able to visit the beautiful sights of europe during the pandemic but todays countdown closer says you know what, for now, america might be touchandgo with covid so where you should invest across the atlantic. Hes about to explain. He gives two specific names he loves right now. Well be right back. Liz if you started the program at 3 00 p. M. Eastern you began watching the claman countdown. The dow was having a great day, same thing nasdaq and s p. Everything is red now. With the closing bell ringing in two minutes, nasdaq looking for fourth Straight Record close t has endured a 400 point swing. This as the state of california and governor Just Announced brand new shutdowns due to renewed spike in the covid cases. That would include theater, entertainment, anything involving that. So lets look at theater stocks. No surprise mere. Theyre probably all in the red. Amc theaters, down 7. 3 . Cinemark lower by 2. 6. Imax down 27. 8 . Jamie cox. Heritage Group Managing partner. What do you make of that . Does this not underscore the fact, covid and coronavirus cases still in a way hold the leash of these markets . Absolutely, liz. This is a headline driven market. You start with positive covid news. Market spikes. You end the day with negative covid news. The market gives it all back and then some. That is the world we live in. Unfortunately for all of us investors you cant just concentrate on nasdaq stocks. You have to remember in this particular situation will be with us for a long time. The companies that you buy, you need to Pay Attention to quality. Quality matters more than anything right now because everythings fleeting until we get some type of cure, vaccine, treatment or some type of handle on this virus so we can go back tomorrow. Liz dividend darlings for europe are nestle, zurich insurance, along with basf. Would you be salting money overseas now . Right now, you did a segment earlier about valuations in the u. S. , particularly in tech. Pe ratios are off the charts high. Whereas in europe just not the case. [closing bell rings] companies with very low dividend yield. I think you ought to take a look there first. Liz yep. Well we appreciate that perspective. Nestle, zurich, insurance panned basf are your picks. The dow sure fumbled. Still up eight points. That will do it for the claman countdown. Connell that is what we call a major reversal. The dow losing steam in the final hour as california orders several industries to shut down indoor operations. That is effective immediately. Well talk about that from all angles. Welcome back, melissa. Im connell mcshane. Melissa good to see you, im melissa francis. This is after the bell. The major averages ending off the highs with the nasdaq snapping its threeday record streak at the close, erasing gains after hitting an alltime high earlier. We begin with fox Business Team coverage. Blake burman at the white house. Edward lawrence is in