Areas. This is wednesday, march 18, 2020 and our special coverage of the coronavirus outbreak begins right now. Good morning and welcome im Morgan Brennan u. S. Stock futures at a down open the Dow Jones Industrial average is indicated to open down more than 1,000, the s p is down 120. If we were to open right now and the nasdaq down 386. Looking at the major etfs that are tracking remember, these are not subject to any of those limit down figures which paused dow etf is down nearly 6 in the premarket s p 500 is down almost 6 . The qqq is down almost 5 . This comes after an almost 1,000point rally yesterday. Recouping the losses with he saw on monday after the massive new stimulus in the face of the coronavirus outbreak and slowing u. S. Economy hopes around stimulus. Boosting bond yields we saw some big moves in the treasuries the 10year back above 1 at 1. 95 . We have seen a steepening of the curve. Check out moves of oil as well wti now at its lowest level since early 2016 trading at 26. 29 also we have more on all of this first, getting to the action overseas red across the board in asia not much earlier in trading either karen has the latest morgan, thank you the japanese stock market first up the japanese yen has been a safe haven. For the stock market continuously falling 16,726 the new handle. The lowest level for this year so far the market in china slightly contained. Down 1. 8 in shanghai the australia has been a huge swing. Tracking on the wall street action and hong kong down 4. 1 the Europe Market has been very weak we are trading at 3 giving back all the gains and then we are also looking at stimulus packages we have trillions in the states. When it comes to spain, 200 billion and france with a package of 45 billion euros and also ready to nationalize individual companies if required we are seeing improvement today and patches of green te telecons doing very well stockpiling. What is that doing Retail Stocks are doing well marks and spencer in the uk are trading high but still selling on some of those travel names. Thank you to the coronavirus outbreak now where the u. S. Death toll with the virus spreading to all 50 states. Rahel has the latest good morning. Along with cutting regulations with testing, the white house is hoping to fight the outbreak with extraordinary stimulus. Pitching to lawmakers that could be worth as much as 1. 2 trillion including sending checks directly to americans saying without federal action, the u. S. Could skyrocket to 20 . The Federal Reserve adding another Liquidity Program in an effort to keep money flowing freely it has caught a primary deal the new offering provides shortterm funding in the financial crisis, the program provided 9 trillion to banks. Irs will postpone the april 15 tax deadline giving them an extra 90 days to pay the 2019 bills. That goes for anyone who owes 1 million or less. You still need to file by april 15 but an extra 90 days to pay key point there thank you for that well see you later in the show as the headlines and the developments continue. It appears, we are in for another volatile day on wall street the dow gaining more than 1,000 points after plunging nearly 3,000 on monday. The dow is down more than 16 . On pace for its worst month since october 1987 joining us on the phone now, our cnbc contributor, jim iuorio thank you for being with us. In terms of the market action, and i realize futures can be very volatile and dont set us up for what the normal session can look like. What are you watching for today . Caller there are two different takeaways, we saw a spike in the dollar and that spooked people overnight today, the dollar has gone above 100 treasury is lower. That will scare some people. There are certain things people want to count on the fact that treasury prices are lower has plenty of people scared maybe it is the people that think this massive package coming along is going to spur things right now, we are probably going to look at near those 2,300 lows the Christmas Eve from 2018. Im hoping those hold. If they dont, we head down to 2,100. We have seen big moves there and in the dollar as well. The fact that these different markets arent correlated to each other and trading in the types of relationships we have historically seen, what does that tell you about here think about it in terms of gold gold was supposed to be some sort of safe haven it has been absolutely revealed as an imposture during this whole thing. Really . That kind of broke. We believed in it. Now since then, the stocks are down a bunch and gold is down as well if you knock gold off the list and then you are looking at the dollar and the treasuries. If there is something that calls into question whether treasuries are on that list, thats the bell weather that is something i like to believe in that could cause some real fear. I want to get your thoughts on the debate. At first, should the markets be closing given everything we are seeing and the big moves and yesterday with the Coronavirus Task force update with the treasury secretary pushing back on that. Then saying we could see reduced trading hours. Would that be a good thing or cause confusion . I think it causes confusion and panic. What a quick whip around for him. When people see Movement Like that, that starts to scare them. I think and im a futures guy forever. Weve had almost around the clock access for years i think the greater the access, the better it is there has been a couple different times when occcircuit breakers have worked im more for markets being open and accessible i dont think it is a good idea to close them. When this is panic driven, you dont want to cause more panic i want to get your thoughts on crude and how the oil collapse we have brent crude with a 28 handle right now how much that is affecting the equity markets and how much pain that could enact as well from that sunday night, at the time, i thought this was going to be the run of the mill stock correction but when it went with the saudis and the russians, it through a different curveball into it. From february 2016, 26 was the low in crude the president was bugging the saudis to turn it on, once they did full blast, im not sure we understood what it would be. So, i would love to see that hold if it breaks 20, i think that causes even more panic and that is more far away. Nothing seems far away we routinely have 5 moves in stocks yes huge moves thank you for joining us when we come back, shares of fedex slipping deeper into the red. Top ranked industry analyst will join me next on what you need to know about that stock with shares down 2 plus a wild ride for boeing as the Company Seeks billions in aid. Former American Airlines ceo bob crandall is coming up. Cnbc special market coverage is back after this. And that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. Every time it takes care of something for us, we celebrate. How often does that. Got it. Servicenow the smarter way to workflow. Welcome back. Dow futures with another drop at the open the biggest ledgers. Boeing, caterpillar and goldman sach welcome back check out shares of fedex as well another name in the red. Initially popped after the Company ReportedThird Quarter earnings in line with revenues the company is lower this morning as fedex has pulled its 2020 guidance with impact due to the coronavirus and will look to cut costs. Fedex has asked the government for liquidity support. Lets go to our guest now on the news line. Lowering his price target on the stock this morning ken, thanks for being with us. Caller good morning. The first time this company has pulled its guidance. How notable is that . This is a company that has lowered its guidance even before we saw the coronavirus it is significant it pulled estimates and this Economic Outlook and the capital plan it tells you the kind of market that we are in and the unknowns Going Forward. The quarter itself, it missed our estimates a bid. What is going on with the covid19 in asia and the impact it had in the end of the quarter. The unknowns in europe and the u. S. And the speed with which everything is happening day by day was really the impact at its outlook. Fedex earnings were so key because you are talking about actual real time looks at how things look around the world a look at industrial activity and e commerce as people essentially quarantine and are not going out as much. Fed exhas been retiring and idling quite a number of aircraft, letting people go and offering pay packages. Offering express and ground operations starting to be merged as well. How much further can it go during these costs it is very cap x and capital expensive to begin with. Two things. One is when you go back to the Great Recession and look at how quickly can they cut costs talking about a third being semiverible and variable and fixed costs. You cant cut that fast. They are trying to retire old aircraft as fast as they plan to do that and cut traffic to asia, they kept those planes that were down post lunar new year, theyve brought those back they are using their aircraft to keep that demand to replenish inventories. You are seeing post covid19, the return to business the concern now is the deceleration in the u. S. And european economy, which is really spreading fast. There is a lot of idea of the bailout upwards of 50 billion could this include the Cargo Airlines like fedex . Caller we were a bit surprised on the call last night that that was one of the things they were surprised about. They said they were part of the a 4 a group that provides services to the government so maybe that was related. That is a surprise if they are asking for funds, given Free Cash Flow that gives 3 million of cash flow, that they need to make moves for an extended period of time if they are going to be solely reliant on that. I know you cover more than just fed ex. When you look at freight, whether it is truck carriers and airlines what is the data telling us right now and are there places for investors to be positioned or is it an area to stay away from caller good question we did a survey that had been holding in a range for the past six months it has really tailed off the alltime low on friday that is a concern on shippers outlook that transport stocks have fallen 28 year to date more than the s p, which is down 23 . Rail car loads are down. Theyve held that level. The data has not fallen apart yet on the actual volumes that are moving certainly from a truck outlook they are leading where shippers are nervous in terms of the demand Going Forward thank you that is one to watch closely still on deck, tackling the coronavirus testing kit shortage one company that just got approval to ship its laps across the u. S. Will it be enough . Stay tuned announcer todays big number, 48. 5 . That is how much wti crude has tumbled in the past month. Now at its lowest level since february 2016 and its worst month ever memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Yes im stuck in the middle with you, no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its the most open and secure public cloud for business. It can manage all your apps and data from anywhere. So it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. Without getting in your way. Welcome back boeing is looking for 60 billion of government aid for the industry not just the company but for its money suppliers. Looking for support for public and private sources including loan guarantees. Is now dealing with a plunge in air travel demand amid the coronavirus outbreak shares are down sharply premarket at 13 . If you factor that in as recent days since march 12, shares are down 43 still to come, no end to the volatility in sight. Sectors to watch and names that uld be a bargain well be back after this the markets roller coaster continues. The Trump Administration mulls a 1 trillion stimulus package amid the outbreak. We are live with the details plus, the president throws his support behind u. S. Airlines we are looking to help companies such as the Airline Industry, within the Airline Industry well be doing that. This is not their fault. Former American Airline ceo weighs in. It is tuesday. No, it is not. It is wednesday, march 18, 2020. This is cnbc it has been so busy this week already and it is just wednesday. Welcome back im Morgan Brennan live at cnbc headquarters we continue to follow u. S. Stock at a sharply lower open. Showing no signs of abating. To get a check on the futures contracts at this moment in time, the dow is indicated to open down more than 1,000. The s p indicated to open down 120. Well turn attention to the etfs that are tracking that will get a better sense of where we might open those limits down. Remember these are not subject to any of those figures. To get a sense here, the dia is down nearly 6 the spy is down and the qqq is down as well this comes after a more than 1,000point rally yesterday in the face of the u. S. Slow down hopes around stimulus boosting bond yields. The 10year yield is back above 1 for the first time and moving quickly to 1. 216 now. Check out the historic moves in oil. Wti is now at its lowest level 25. 78. We just broke through 26 ice brent is at 28 a barrel right now. Lets look at the action overseas red and Early Morning trade now. Karen tso with the latest for us morgan, thank you Global Equities are not stabilizing. Japanese stocks reaching for lows of 2020 still down 1. 7 . More selling in china. Australia, a rough session to catch a falling knife is the phrase that comes to mind. The 6. 4 ripped off the market level. 4. 1 for hong kong looking at the european markets, 4. 5 coming off the ftse we have been lower intradau on the european stock market. A stimulus package not helping again. The dax was one of the weakest german stocks sliding 4. 6 also talking about nationalizing companies. Italian stocks down more than 1 some sectors have been hit harder than others look at that green, telecons and defensive safehaven. Investors are looking at the work from home play. We are back to you to the white house now looking for what could be the largest Financial Aid package ever up to 1. 2 trillion in the face of what looks like almost certain recession. Looking for direct payments to u. S. Citizens of up to 1,000 each this is after err wiarlier aid packages fall short. Well go now to eamon. Right we dont know what industries will get the support this is a big change in the 24 hours previous the white house now supporting those direct payments to americans across the country they are also talking about an 850 billion to 1 trillion stimulus bill that they want to get moving on the capitol hill after the Senate Passes that phase two bill the senate is hoping to lock in a vote for the house bill today. They dont have that scheduled just yet the senators are working on that larger package the treasury secretary pitched to them on capitol hill hill on that republican lunch, mnuchin really raised eyebrows with scenarios that could happen with action or without action by congress one was a 20 unemployment number for the United States if no action is taken that is a depression level figure an enormous number but mnuchin saying if congress does not act here, this is where we could end up. This is one of many scenarios and mnuchin doesnt believe this is where we would end up ultimaty thats the worst Case Scenario yesterday on capitol hill said how are we going to pay for this, he said dont worry about that right now this is what he said different times will fix the deficit. This is not the time to worry about it this is impacting hardworking americans. Thats when the government has to step up well wait to see where the senate ends up on this there is a sense of urgency to get senators to abandon some of theirpolitical and ideological considerations and vote for this thing while there is still time. Time is of the essence. Clearly there is bipartisan support for the stimulus how quickly could we see a big trillion dollar plus stimulus make its way through the market . If everyone is on board, congress will move fast. The question is if they can get everybody on board or not. Thats why he was using that 20 figure to say, look, we are talking about Great Depression levels that puts the ownness on congress to do anything. Talking to senate aids last night who said theyve got their fingers crossed but they wont be able to heard cats and get everyone together on this. Thank you for the latest. The fda announcing new, quote, unprecedented efforts to get new covid19 tests to the public one big kinner is code diagnostics. The first u. S. Company to obtain u. S. Approval of the covid19 test kits. Now going to our guest thank you for being with us. My pleasure, morgan talk to me about what this change of the fda policy means and specifically what this test does as you said, this is an unprecedented policy by the fda, which enables a commercial provider like codiagnostics to manufacture and distribute tests to lab tos across the united sts under certain circumstances. First, we had a ce marking the first with a ce marking on a covid test that allows us to distribute the test to laboratories to detect the disease. How quickly can you ship these and what does it mean about your ability to test to other parts of the world like europe can you do both . We can do both. In our salt lake facilities, we can do 50,000 a day and up to 2 million te