House considering Financial Relief for workers and businesses impacted by the virus. This is what the president said yesterday. We are going to be asking tomorrow, were seeing the senate, well be meeting with house republicans, mitch mcconnell, everybody, and discussing a possible payroll tax cut or relief, substantial relief. Very substantial relief. Thats a big number. Were going to be talking about hourly wage earners getting help, so that they can be in a position where theyre not going to miss a paycheck all right jim, we have a presser at 5 30, but right now dont expect specific proposals i think theyre mulling over some things. Theyll give direct support to workers, which is fabulous a lot of workers live hand to mouth. Theyre coming to work even though she shouldnt because theyre sick and this is a great holdover Small Business loans, they can expand that greatly. We have a lot of money coming into the treasury. They can waive the interest and penalties for people who file extensions thats terrific. That puts a lot of money in peoples pockets. A payroll tax cut, i think they should hold that one back and be ready for the cruise industry, Airline Industry i think theyre well aware of that theyre seeing a lot of Business Leaders today, banking tomorrow Banking System theyre confident of i see things theyre doing one thing that made things better today is that this was a recognition that things have to be done. And that was very reassuring does that mean that could be like bernanke when he said i need to cut rates, but theyll put things in place, theyll stagger them in case things get bad, maybe worse its something is it enough for you to feel more comfortable buying stocks after yesterdays . Yes, it is. Crushing blows to certain sectors . Im thinking energy and to a lesser extent but also the banks . I think energy was really bad. I go over a lot of the banking Balance Sheets, they learned their lesson in 2016 when it comes to nonperformers if you go out now and you say this makes me feel good, it made me feel good at 5 00 like everyone else. If youre buying up 8 , people say thanks for nothing i never do that. I dont buy the up opens do i feel marginally better . Yeah this is what i wanted. Ive been saying this over and over again were looking at the banks. They were shocking moves. Absurd. Bank of america down 15 . We dont have Goldman Sachs there. Less than 60 etf with the Interest Rate environment as it is, there are those who say, well, things wont have a lot of earnings momentum no, they wont have a lot of earnings momentum. But at the same time, if youre going to decide this whole group now were on oil here yesterday seema reported norwegian got a new revolver from jpmorgan for 670 million. I say are you kidding me they say theyre our client. Do i want jpmorgan to give that loan i prefer that loan to come from the u. S. Government. You have jpmorgan saying, listen, were okay with this then you have dr. Fauci saying dont take a cruise. Jpmorgan is bringing a knife to a fauci gunfight goldman takes carnival down they cut it. Thank you very much its an amazing call. They say stocks are pricing in the downside, hence below average for the foreseeable future down 62 look, what are you going to do did you think the most important person in health care in our country would say dont take a cruise take a cruise at your own risk i cant believe the administration was thrilled with that but theyre notcrimping fou ini. I think carnival is the blast zone thats probably the most dangerous stock. When do we have the uncomfortable discussion of who gets what, what kind of relief, if i dont take vacations, why am i paying for a bailout in the travel industry . Bastian says theres no question there will be Government Intervention in his industry i think thats true theyre not ready to do that theres a degree of hope there are people who say the sun will come out. The flu has peaked flu has peaked, but not novel what does nol meavel mean novel means theres no immunity. If this thing doesnt die down, the airlines do die down i think its early i think the Cruise Companies should be in there saying were not bad actors we will go others will respond, Corporate America just got a huge tax cut a couple years ago and they spent it on buybacks. I dont think the administration is in there trying to figure out how to save these companies. Theyre trying to figure out if they default, whats there whats left . Because its just its a health care thing. Its not like, hey, we have to have carnival. Prevent a recession, theyre try doing that a lot of people work for the cruise ships but if i were in the war room i know theres thats not going to put us in recession, the cruise ship industry if you were in the war room, like that roosevelt room where it shows you where we were, wouldnt you like to have a worldwide map where the various cruise ships are they seem to pop up all the time the San Francisco one that went under the Golden Gate Bridge yesterday, it landed they dont have enough kits. If you have 100 degree temperature in new york, you dont get a kit. Because youre not sick enough azar this morning did say we are on our way to having a surplus of kids. Surplus best news of the week he may be part of the surplus when this thing is over. I liked his comments yesterday on the economy what did he say strong. Always good to hear about him talking about the economy. Go to Nursing Homes see the aventis downgrades specific to the stock market, yesterday later in the day, i was talking to people looking at dividend yields. Are they . Whether its bp, which was almost at 10 . They just raised their dividend or et, Energy Transfer no. Ive been saying that thing is to avoid that thing is just a rogue operator or looking at the banks you didnt mention occidental you think thats beaten up too much occidental hit 25 . That sounds sane. Shocking. Occidental had an 11 11. 2 billi market value at the close yesterday. You can see its up a great deal now this morning i want to put that in perspective. When they closed the deal to acquire anadarko, not that long ago. Right when they closed that deal, it was 36. 7 billion in value 55 billion deal it wasnt 55 billion stock and cash. 37. 6 billion. The cash and stock equaled at the close in may, roughly last year, 36. 7 billion the entire company now has a market value before todays open of 11 billion. Yeah. In the Great Recession, there was a moment where i was in an argument with a major west coast bank why dont we just well, it was located there. Lets call it washington mutual. And the argument was i said you guys ought to just surrender. What is that rather than just go through this whole process of liquidation, bank lines, say we surrender i think its time for occidental to surrender they put up a white flag in front of their office and surrenderment who are they surrendering to . I dont care. Does it matter we surrender as a result of that usually when you surrender somebody comes and says okay does it matter . I think the important thing is the surrender. If you had done that yesterday you would be missing out on a 28 move higher thats true today is a better day to surrender. Marathon cutting capex. Did you see that. By a fifth. Suspending all drilling and completion activity in oklahoma. Diamondback started that. Diamondback was a major reason why things went bad yesterday. F. A. N. G. They didnt want to surrender. F. A. N. G. Is one of the most, lets say, conservative and serious companies. And they basically said whoa, were cutting back were cutting back big yeah. One thing i want to say very nice. Really . I hated that axe aoccidental from the moment they announced it do you think Warren Buffetts money is good . Easy come, easy go. Also did have he did better than the common stock. When it was announced, i went to occidental just like on the xerox people, i said would you cut it out . Cut it out this is a bad mistake. Mike worth, so smart, chevron, dropped out. Please dont do this deal. Who am i im some guy in journalism please dont do this deal. They decided i was like jimmy olson. I was jimmy olson. Now youre taking umbrage at their refusal to listen to you and making them pay. Yeah. You were skeptical from the beginning, you didnt count on this coming. I said its pure attitude, state of mind, not unlike Steven Seagal you knew it was coming. Putin was like midmarch i was taught by david tepper. One time i tried to sell bonds for a bankrupt Stove Company i went down there to tepper. I said i want a quote on those he said whats your name i said jim cramer. He said i got a guy willing to fleece every client in the world, his name is jim cramer. So i feel like occidental is like jim cramer. Tepper did that, made a fool of me i learned. I had a lot of hair. You had good hair, too. I did curly i didnt look like curly, more like larry. We did have those Circuit Breakers yesterday lets get to bob pisani this morning. They dont have Circuit Breakers going up, do they . Why dont they i guess nobody complains about that the market is going up, we have to stop things we had that Circuit Breaker kick in yesterday, 9 33 a. M. Eastern time closed for 15 minutes. It worked well object is to get liquidity into the market again slow things down a little. It pretty much accomplished the task s p futures here there is a Circuit Breaker on the upside for the futures contract 5 here. You see were trading below that at some point, you cannot trade above the 5 , but you can trade below that the futures are here the rules are simple on this for the futures. During nonregular trading hours. Its plus or minus 5 on the futures. Nonregular trading ours during trading hours, its the same as the Circuit Breakers, 7 , 13 , 20 to the downside keep an eye on that. By the way, we had comments yesterday, everything worked smoothly some people were baffled because the vix was not calculating at the open people said where is it . Its hard to calculate the vix because its priced on the s p the s p had the futures locked out. Marketmakers will not make bids and offers on that these Circuit Breakers are important. They slowed the market down, there are consequences to them in the modern world we have all of these derivative products priced off the s p if the s p is not able to calculate because its frozen, locked down, whatever reason, its difficult to price these derivative products. Circuit breakers should not kick in often because it does create consequences, but when they do, they do have some positive effects. Its all a question of what kind of tradeoff youre looking for meg tirrell is at hq with the latest on the coronavirus. Good morning good morning. With the veeirus reaching 105 countries, infecting more than 115,000 and killing more than 4,000, the World Health Organization saying the threat of a pandemic has been very real but it also said it would be the first pandemic in history that could be controlled. Noting the actions of governments, businesses, communities and individuals can make a difference. Were seeing more stark action being taken around the globe the in italy a lockdown extended to all of its 60 million citizens some epidemiologists warning the u. S. Is not taking the virus seriously enough dr. Mike osterholm said this morning that washington is handling this like a d. C. Blizzard, like it will pass. The cdc stepping up warnings to highrisk groups older people and those with Underlying Health conditions another doctor warning its likely many will be exposed to the virus this year or next and people should stock up on medications, Household Items and groceries. Vice president mike pence plans to meet with executives in the Health Insurance industry today. Many have said theyll waive copies for Virus Testing and expanding access for telemedicine i dont know what your experience is, im finding very different adoptions of behaviors between people some take this seriously, they listen to what youre reporting and the like and the potential this will be with us for a long time and are changing behaviors. Many others, smart people i know are choosing a very different path what can you tell them in terms of how they should behave based on the reporting youre doing and talking to many of these people following this thing so closely . Its an important question. Theres a cohort of people who say this is just the flu a, if it was just another flu, that would be bad on its own but there are many reasons that people are saying this is potentially worse than the flu its more contagious, more deadly than the flu. The flu does infect more people, as of right now therefore the number of deaths is higher, the percentage of deaths with covid19 are currently a lot higher than for the flu. Ive been encouraged to hear older people taking precautions. Theyre all over 60. Those are the groups that the cdc is speaking directly to and those with Underlying Health conditions should be cautious. Its household behavior, but as were talking, the vatican is closing st. Peters we know italy is taking their lockdown nationwide. Harvard this morning told students not to return from spring break the cdc says bring Exchange Students home. Its less the household and more the corporate behavior thats changing but we do have encouraging news it looks like japan peaked south korea, perhaps it peaked do you think that the testing in south korea helps and perhaps if we got that in europe, we would be less freaked out . Yeah. South korea has really been lauded as seeming to have one of the best responses weve seen, increasing testing so quickly. Weve seen case counts go up its above 7,000 there, but the death rate is much lower they are still in the course of the disease, for the most severe patients, the course of the disease can take six weeks the situation in italy is concerning given the high number of deaths. We are hearing that it is effecting older folks there, and that accounts for one part of it but there are encouraging signs around the world its important you dont want to minimize it when youre older, we can say oak, thats fine. We have a lot of deaths but theyre old. Theres a lot of old people. Its not like thats a cohort, hey real people yes baby boomers yes i can imagine someone said 65 and saying, well, i feel much better not. Well get cramers mad dash countdown to the opening bell. We are looking for a bounce. 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Comcast business securityedge updates every 10 minutes to help keep your connected devices protected against new ransomware, malware and phishing threats. Every 10 minutes feels pretty good. Get secure, reliable internet and voice for an amazing price. Call today. Comcast business. Beyond fast. Well get a lot of news out of the airlines today at this jpmorgan conference. Ed bastian saying bookings are down 25 to 30 . Cutting international and domestic capacity by double digits two weeks ago our revenue trajectory changed dramatically as the virus spread meaningfully outside of asia. Since then weve seen a 25 to 35 decline in net bookings and were prepared for it to get worse. We expect demand erosion will continue in the nearterm and built a plan that prioritizing Free Cash Flow generation and preserves liquidity. Interesting transpacific is the worst, largely he says because of government restrictions as opposed to a drop off in demand. Look, there are the cross currents here are incredible i keep coming back to the idea that these companies will need help whats really a shame. These companies have balance shed sheets that are good they didnt spend a lot of rainy day money. Its an industry that chronically in various times needed help. And this is one of those times i dont think that the country will let these countries down. Unlike the cruise ships. Theres an element where the cruise ships might tide the workers over because give them some forgiveness, let their attacks wave the interest and penalties so those people are not hurt the companies themselves wont get bailed out maybe they do it but the airlines, no delta had 849 million shares seven years ago, and now down to 642 mi 742 million. In some ways thats almost a bed bath buyback yes bed bath consistently bought back their shares at high prices only to have that stock collapse all the while they did that and used the money for those purposes have you been to bed bath down sharply. Which one delta still a 28 billion market value. Look look at the carnage in the banks and oils jpmorgan, i wish jamie the best of luck in his health, but i think jpmorgan was uniquely hurt by the double whammy of people worrying about loans and jamie dimon is such a force. No one announced a big buyback did you notice that . Nobody announced a big buyback isnt this when the airlines should be buying back . No no no they bought higher bastian said theyre considering a hiring freeze. Gary kelly is taking a pay cut oscar munoz and the president forgoing all of their base salaries through june. Thats okay compensation