Cut this month thanks. We are seeing a big bounce back. All angles are covered for you bob pisani, Rick Santelli in chicago seeing new lows on the ten year yield, meg has the latest on the coronavirus and Steve Liesman on whether the fed will come to the markets rescue here we begin with stocks and bob with the latest here kelly, were just off the highs. The question is, why theres two essential reasons. Number one, we have extreme oversold conditions. Well explain that in a minute and number two, we have hope for fiscal stimulus and coordinated monetary stimulus and theres indications those are coming together as well there you got your rally take a look when we say extreme oversold conditions. It shows you mouch much the market momentum is moouing below 30, thats oversold. You very rarely see this its screaming buy in a traditional way to look at the markets. Another extreme indicator, you have nyse, the volatility index. We were at 49. Thats almost four standard deviations away. We never sold those well in history, so when you get up here in a short period of time, the market will move down again. Thats almost 40 of the new york stock exchange. You dont see that often another screaming indication of at least a market bottom temporarily then we have enormous outflows in the last several tas and a lot of spreads here all of this says indications you should buy at this point and heres the problem here. Ooempb while these indicators clash a buy, yes, new lows, extreme vix readings, traders at a deer in the headlight look throughout the weekend how do we know this is accurate . It worked in the past baugh bu maybe this is a black swan event like 2008 and were all going to see the market decline and get our head handed to us if we buy. Today, these ideas are indeed working and a lot of people are breathing a sigh of relief good stuff. A lot going on well as that is happening, also ea earlier today, we had a new low for the ten year yield Rick Santelli is at the cme. I guess the question is with all this bond buying, is it people just shortterm parking their cash because they dont know what else to do to do or is this a weird optimism about government bonds i think its a little nervousness so theyre parking their cash an i think theyre park iing it right next to many others also parked inside the treasurys sovereign complex all are big parking lots ours just happens to be one with positive yields. If you look across the curve, were down ten and twos. Seven and tens, four and 30s why to i wring that up because theres no way were closing these in positive territory. Which means eight seg record and each one is historic look at the two day of twos. October 1st, dollar yen. Look how much its suffered against the yen. Its lost in the last seven session, two and a half cents. Finally year to date of the euro versus the kdollar, same thing wheres is that selling gone well some in the yen a lot in the euro. Kelly, back to you rick, thank you very much the World Health Organization not yet calling the coronavirus outbreak a pandemic. Pointing out that 90 of cases are in china mostly in province, but the spread is growing and meg has more pr the us the w. H. O. Noting today that as cases in china are declining, theyre still rising in the rest of the world new cases today were almost nine times higher than those in china. Of particular concern, cory ree e area, italy, iran and japan. In the u. S. , numbers are rising as state and local labs get the ability to run their own tests new cases of Community Transmission in california and Washington State where officials are b tracking an outbreak at a nurse iing facility where a patt has died and more than 50 residents and workers have symptoms and in just an hour, well see pharmaceutical executives head to the white house for a meeting on vaccine and drug dromts. Regener regeneron, gileagilead, pfizer d johnson johnson. We got an update on region rons timeline it aims to have hundreds of thousands of doses for human testing in late summer that was at the Research Conference in boston treatment or vaccine . Treatment, but it could be used for prevention. Its an antibody based approach. We need both. We do youve got to remember the story. We want the treatment for the people infected now. We want the vaccine, what did somebody say the other day, we dont need a rate cut, we need a vaccine. They have longer timelines right now. A year. A year until we get into trials sorry, until we get a vaccine that could be deployed more broadly, but treatments could be earlier. Theyve got to make it, scale it and distribute it thats right. Still, thats been one of the better stocks in this. Also related to novartis. Appreciate it thanks the overall markets and the president and some of his staff want the Federal Reserve to come to the rescue. In fact, some out there seem to be counting on it. Steve liesman now with more on that it could be a big part of this rally expectations for an aggressive interventi intervention faster for the new case count for the coronavirus. Multiple fed rate cuts seem to be priced in here. A lot of talk about the possible emergency cut. One before the march meeting on the 18th speculation by jpmorgan and others that you may see a zero Fund Funds Rate but recession for most economists not the pace case these expectations are showing up in dramatic shifts. Folks, these are moving all the time 15 minutes old i garruarantee you its moved sc then, but right now looking at this, zero chance of a 25 basis point cut, a 25 chance of o a 50 and 75 chance of a 75 basis point cut. Kelly, youre shaking your head. Well get to that in a second, but the fed funds is seen plunge ing if you look at the trajectory for what wr the market is putting the funds. 1. 6 now on the fed funds 09 after march or take away a full percentage point is the expectation by july. In a joint statement, the imf and world bank pledging this morning to help member nations that provide financing as needed the governor of the bank of japan issuing an extraordinary statement saying theyre pledging to provide ample funds then reports that tomorrow that the finance ministers will hold a con b frens call that looks likely to include central bank officials. Theres a lot going on i think i said this in the last hour, the cavalry is mounting the steeds here finally. Maybe they should have been done last week but what needed to be done now it looks like the pure ro bureaucracies and agencies are getting moving but is that steed secretariat or a 30yearold man is there any juice left in that central bank tank . I think there is. And i think if i could follow the metaphor and need a couple of collides da pledging on thn monetary side as needed, i think these are among the things that got the markets attention today. I think these are among the things that look, you cannot undo it all, but you can have programs in place that try to ease the pain that will happen peoples real lives from the economic fall. Steve, stay right there lets bring in a senior fellow at brookings might have read his piece in the new york times. Called the coronavirus has put the worlds economy in survival mode its good to have you here steve just mentioned that maybe theres going to be a fiscal and Monetary Policy response what do you think is most likely tomorrow and in the weeks ahead . I think weve seen this before central bankers being expected to save the world. Certainly a combination of fiscal and Monetary Policy would calm nerves. It would mitigate the downside risk, thats going to give a significant boost to growth that is going to be enough to off set this negative shock. Thats a little harder to see. The problem is that even if there is significant stimulus coming from both Central Banks and fiscal policy, its not obvious that businesses or consumers are going to go out and spend that money, but this will put a bottom on how bad things could get and thats really important at this stage the major debate is whether monitoetary policy is the right tool there are those who say what the economy needs is the neutral fate has fallen so therefore the fed has to respond and doesnt really matter what the cause is. What would you say to those those folks and about the idea that look, maybe there could be something on the fiscal side that could help improve the economys prospects better its definitely going to have on Financial Markets and weve seen some of that today. Fiscal policy is going to be much more effective. If it can be targeted, many Small Businesses are hurting theyre going to have cash flow problems consume r rs are going to be hurting. If we can get money into the hands of these consumers, if we can get it into the hand of Small Businesses, thats going to hurt. But is it really going to make up for a demand efficient sni not quite, but having monetary and fiscal policy Work Together and having a coordinated response acrosscountries, that is going to help in terms of mitigating the damage and that is really important at this stage where hinges could spry rall out of control if we dont see some action. Right now, the markets are spiralling up. The dow is up 805 point, but Steve Liesman, i want to great that great poet warrior, Steve Liesman. You said something last friday k is a rate cut going to make you feel safe going to a rock concert or getting on a plane . No, it will not i think hes undually pessimistic in that if your goal is that the stimulus should undo all of the damage, then i think your goal is set wrong and if thats the goal, then certainly the stimulus will under perform. Say theres stimulus in place that keeps businesses that are good businesses. That otherwise would not go out of business. From being called their notes n and loans. Say you have loans or stimulus out there that would keep other spirals from happening in that case, no, it doesnt undo it all. Doesnt cause people not to go to rock concerts or get on planes what about certain ones in the travel business if theres six months of a decline, some could go under and theres a legitimate question as to whether or not theres a role for government to come in and say you know what, lets put a floor under that lets stop that pain from happening that shouldnt happen. We have to deal with this with perhaps dramatic declines in supply in demand in certain businesses. Well let the government do two things put a floor under the damage, but another side to the trade because thats when markets get into trouble can you address whether the hong kong approach would work . Best or better here with the idea of you know, basically giving citizens about a thousand dollars in cash . Maybe 2500 off their income taxes, breaks in their electric bills . You said something telling a minute ago which is that Monetary Policy is easier than fisc fiscal i wonder if thats why we keep come back to a central back solution even though as goldman and others and steve have said it might not be the most effective . I think to steves point, the key question is how best to limit damage at the stage. Certainly the big supply options, maintaining peoples confidence, certainly Small Businesses that are going to fall if they dont have cash flow that consumers are going to be in very precarious circumstances if they dont have money in their pockets, so even if theyre going to stash away some of the money, i think seeing governments act in concern using all the elements and policy tools at their disposal is really important at this stage it may not have a huge bang for their buck, but could prevent a much worse outcome and its really crucial at this stage Olivia Blanchard did a 180 and they found out that the multipliers to government assisteds and a time when the Global Economy is in crisis are much higher than we thought they were and i think thats an important lesson we thought it was less effective. We found out afterwards it was more effective more essential had more bang for the buck than we thought steve, thank you very much. Appreciate it as well all right, back to these markets. Shall we because wall street may be betting big on pork komg from the Central Banks. And stocks they are surging today. Dow is up 800 points and volumes across the market and etfs are sky high while lower today, dont b lose sillose sight of the fact that vix hitting its highest level in nearly a decade last week and still well above where it was a few weeks ago. Lets bring in jeff mills as well as burns. Jeff, are you the one driving markets higher i wish i was. I think whats driving the market higher is really technical snap back. The rubber band got pulled really far in one direction. Bob pisani was on earlier talking about it last week, 90 of stocks in the s p made one month lows four days in a row in the 90thed at levering tfs betting on the market going down, there were ridiculous yesterday, some 300 million shares purchased i think taken all that, the market was bound to snap back. The b problem is were still pricing in uncertainty its not even risk that can be calculated the spectrum of outcomes is to wide here that one trading day is not going to resolve all our ish issues all those people who bought the two and three times are getting them today burns, youre a longterm player you want to buy low and sell high or just keep buying low what are you buying today . Were looking at equities in two areas. Were at a point now where the markets can embrace risk you have three quarters of the s p 500 companies yield more than a tenyear treasure are ry. Theyre look at two ways also a barbell approach. The first bucket being look for names that if this does, if the Health Care Gets worse, theyre going to hold up better. Companies with high dividends, with stable earnings and more importantly than anything, companies with clean Balance Sheets to allow them to weather the storm. Names like the tell comes, the Defense Companies then on the other side of the coin, theres a will the of topnotch high quality Industry Leading Companies that are now on sale look for companies you might be able to get good values. What do you make of the level of rates here . If this slow period of low rates persist, does that x how do you ip ter interpret that a lot of us give supply and demand the supply of yielding alternatives is low. At the same tilme, demand is high looking for yield anywhere they can get it, which again, i would reiterate probably makes a strong case for companies that are pay iing dividends because s the treasury yield, thats a stable yield they have dividends that have a track record for growing faster than the rate of inflation. When will we know the all clear is sound something. Its hard to know looking at the progress of the virus and whether thats piqueded, once we see that, transportation probably be too late so i think for now, you have to start to look for areas of the market where most of the pain has been priced in. We have a monday morning call, we tack about the market with aour advisers i was flipping thu data this morning. If you look at the differential between growth and value stocks and the valuation despaisparitye the past six to eight week, typically growth trades three and a half times right now, thats almost eight and a half times almost three standard deviations for growth being expensive haves value. So i think you want to look for places wherein value where you can find places that reflect a negative scenario. Even in energy names like shah near its way above where the stocks currently trading now in the low 50s so there are pockets of value with individual names and just in the value style in general. All right, great discussion, guys on a big market day although a little different than weve seen in the big market days the last few days now this ones up as you can see, stocks are rebounding today in a big way. The dow is up about 800 points coming up at the top of the hour, the president , Vice President and entire Coronavirus Task force will meet with pharmaceutic pharmaceutical executives at the white house. Tomorrow, that attention will turn to the travel industry, hit harder than perhaps any other. The president will host ceos of the cruise lines and airlines. Squ phil has more on what we can expect from that group that needs some help. Zpl they do. Look, the airlines dont know and i cant speak for the cruise industry, but with the airline industry, youre look iing at a industry thats unsure what the demand is going to be not only over the next couple of weeks, the next month, but four or five months down the road so what youre seeing now are a number of things on the international front, there are select like the milan thats been p halted major corporations are suspe suspending nonessential travel im hearing from people who say i was supposed to go on a work trip, not going. American airlines, a good example is waiving change or cancellation fees for tickets bought between now and march 16th what about united . Theyre in this ramp up mode for pilots over the next several years. They dont know if theyll be able to use them now so theyre not going to be hiring this next class of pilots and take a look at southwest shares are moving higher now its ticked lore, but was positive shortly theyre saying domestic routes from southwest, it offers the airline a buffer nobody knows xwaktly what the demand picture will look like for the airlines say a couple of months down the road theyre family confident it will be b be, but theres some weakness sit tight, i believe we might come back to you breaking news now. An update on the number of cases in the United States news out of seattle they are reporting an additional three deaths there some new cases four cases there theyre saying are new. Two of those people have died they say in addition, one of their previously reported cases now has also died. That brings the total number of cases there to 14 including fives total. Which is the total death toll for the United States right now. Back over to you well, back to the airlines, which are under pressure here. We want to bring in a former airline ceo who managed throug