I think we should start by checking where we are. Were in the midst of a big snap back day the dow is back over 20,000. Pushing a 9 gain of 1600. The s p good for nearly 8 theres the nasdaq as well up close to 7 . Have we turned a corner . I dont think so. I think technicians is what is referred to as a counter trend move its nice to have. I think people could use a break from just the persistant and constant selling were looking at stocks in the s p 500 be p t the percentage of stocks making fresh hundred day lows that number is slowing down. A few days ago it was high 80s right now its low 60s i think thats pretty good i think well take that. Again, these are the types of days that give you the opportunity judge, if you were panicking and you felt you were too exposed, this would be the kind of day if youll lighten up from a 60 40 portfolio to a 50 50. If you look at the biggest names its happening in areas that have been thrashed mgm up 33 Royal Caribbean up 31 im looking at ual up 24 . They are selling the walmarts, the vozooms, the costcos that h been working thats counter trend but take it dont get upset about it its nice to get a break i was thinking the same thing, stephanie lets see if we can put two of these together and not one big up day that everybody sells into because they dont believe in the move do you think theres staying power . I do. Theres unlimbed qe. They can buy when ever they want for as long as they want and it gives them the flex blts to ibid that i think the fed program yesterday addresses liquidsty issues it buffers the outflow that we have seen all last week and it should lead to stabilization maybe not right away but i think it will in the coming weeks. Thats the most important thing to start secondly, youve got to get this fiscal package well see what it looks like two trillion looks like the number im glad its two versus one, if thats the case. We dont know how long this will go on. That gives them the flexibility as well. Theyve got to get this thing passed soon. Small businesses are just crippled right now we got to get that i think if they do and when they do, that will also be viewed positively i dont think were out of the woods on volatility, scott im glad were down from 80 in the mid50s. I have said all along volatility will stay in place. I think scott, most people share that optimism. Why is not every one stepping in and not buying the market right now. The liquidit highlighted in the last couple of days have improved. Stock of amazon. Last couple of days amazon was 10 wide from the bid to the offer. Today its back to about 1 to 2 wide. We all think we will be higher i believe in that myself i think you want to look at the functioning of the market. The numbers seem to be improving there. Thats lending the form of optimism to the trading community. I know most of you didnt have the opportunity to listen to new yorks governor andrew cuomo. He was very sobering he had a rather sort of grim outlook on the cases that are going to still emerge in new york city. Joes point is well taken. Theres great concern in this country to where things will go especially in the hot spots. I want you to listen to what david tepper told me yesterday stocks could go down another 10 . Maybe were in the process of butting in a bottom. Here is what he said about the market now im nibbling there. I would say im nibbling there a bit of health care today hospitals and such im nibbling in the tech sort of stuff. Im also buying corporate, some corporate loans, sort of junk loans today. We do a lot of bonds were doing some of that today some bank debt yeah, were doing, you know, we are nibbling no question about it were along a few different asset classes. Things look really interesting for the long term. Shannon, you can take that as a dose of optimism for certain coming from david tepper who at the same time, its worth noting make it clear this is a stick your toe in the market and not your whole two feet. For clients that have cash and have cash that they need over the next three to six months, were not looking to put that money to work some of the disconnect immating from the bond market the bond market has been trading on the threat of insolvency. You can try to discount your expectations for lower revenues and earnings if you look at the bond market and they are thinking about companying no longer being a going concern, thats where you get the rapidity of declines if you want to move from 60 40 to 50 50, today is a great day. John, i want to know about volatility but i also want to know picking up where we left off with tepper, when he was talking about buying there and nibbling there, i asked him specifically about some of the larger marquee names in tech that he owns whether its amazon or grade schooling ingoogle orl headliner names. Are those the kinds of stocks that you should be buying today. Im curious as to what youre doing. I consolidated by positions down from 35 to 40 down to four stocks. One of the issues we worry about and i would have been happy to be wrong about this but when they shut the trading floors down on march 13th, friday the 13th, that was the last day they had traders on the floor or the cboe when that happened you had a significant disconnect in the futures markets as well as in i Derivatives Market when i say significant, things we have not seen before. You and i went back about various huge firms, billion dollar Trading Companies that might be going out because of that move. Because until they did an emergency rule pass on friday, there was not the abilities to do a lot of the trades that needed to be done in order to avert the volatility explosion we saw because they did not, until that friday evening after our last friday evening, rather, until those things were addressed. Let me ask you this is volatility too expensive today to buy it still is too expensive to buy here its still going down. The vxx last night really big trade, scott in the puts of the vxx. Thats short term volatility etn, Exchange Traded note. They came in with a abandon buying puts on that. They were dead on. The etn fell from 55 or 56 where it was it broke 40 briefly today. That was a sign that fever was sort of breaking it is still quite high i think there are still a little work to be done. Youll hear that from tony dwyer, im sure. After we have this kind of panic sell off and then that reaction higher, to everybodys point it seems that people want to see a retest it doesnt mean the volatility will be as high on that retest but it is likely well see some sort of retest and maybe that comes because they dont like they hear in the stimulus bill we dont know. To docs point, dwyer is out with commentary that says the following. While we expect a rally that could recoup 30 to 40 of the drop from peak which was the case in 87 and 2011, respectively we continue to wait for panic low to wait for the position you could string a few of these moves together its going to be really difficult for investors to sit there and wait for another, what you could say is a panic low, isnt it i dont like the analogs. I love tony. I dont like the analogs hes using. First of all, most of your viewers may not be aware, 1987, the s p 500 closed up. 2011, the s p closed, i think flat or slightly up for the year in neither case did those massive sell offs whether were talking about the crash of 87 or were talking about the fall of 2011 during the european crisis, in neither case did those bear markets occur from all time record highs we just watched a stock market go down 30 in 22 days from a record high and unlike prior recessions, were not talking about a situation where people feel a little bit less confident so they spend 20 less than they used to. How about a situation where people cant spend money if they tried because they are being told to stay at home 25,000 infections in new york state and Governor Cuomo told us a half an hour ago that the number is doubling every three days i dont like those analogs i dont think they make any sense in this context. I understand what hes trying to say. I dont think it will be helpful. This is unchartered territory. Now, do we need a retest does it have to happen no the bottom in march of 2009 was never retested to this day if you are waiting for that, what you watched was a v shape recovery in the s p 500 that took us up 40 by june 1st of this year. 40 and you never got the retest i know people are trying to come up with past situations and whatted. I really dont think any of what we have been through in American History is aolymppplicable. We may go test the lows. Those particular moves that happen to the down side and say tech, for example. Thats where i specifically asked mr. Tepper about you have to make a calculus in the long term those are the stocks that are going to be able to recover faster and they are worth buying today if youre a longer Term Investor even if you believe that the bottom could be 10 lower than where it is now or you could get a full retest of the lows. St stocks kpleetsly under performed will be as wide as we ever witnessed i think what youre trying to identify now and every one is talking about the s p 500. Stop talking about the s p 500 talk about companies that are trading distinctively better than the s p 500 talk about intel that is trading up 11 in the last five days while the s p is down 6 . You have xpi all higher. The divide between stocks that are going to work moving forward in the s p versus the one that wont will be as wide as can be. It hasnt felt very good. What im focusing on is upgradesing the portfolio. Thats what ive been doing in terms of buying high quality companies. Blue chip, best in show, great Balance SheetsProven Management teams with a good bench. Why wont i pick a bit after that company mcdonalds, the same drill, down 27 that month a great Balance Sheet. The stock is down 27 in a month. Already discounting a whole bunch. I would say you have to barbell it a bit i dont want to own just kind of defensive quality compoundsercc. They should ben fits i dont think 6. 1 dividend yield is safe. If they cut it, i think people would applaud that to approve their cash and Balance Sheet i was been cleaning up in energy i soulld out of diamond back i already owned chevron. On technology, were asking before, i bought twitter i think thats precash flow growth theyre seeing is tremendous they will see a hiccuhiccup josh, did i haerp you say you agree . I think star b starbucks is e run. I think stephanie is doing the right thing. Shes not going to 100 cash or 50 . Thats not in her man date look at the exposures and ask yourself, do i own the best company or the third best company. If i own the third best company, i shouldnt. I did exactly that i got out of bun can i had been in the stock for six years and change did very well with earlier in the crisis i said i want the make some room because its if they crush starbucks from its high of 100, and they did, id rather be in that stocks would not stop going down ended up in the mid50s. Now its back above 60 i dont know if i got the best price that starbucks will ever sell at. Im going to tell you we had this term back in 2001 when i was a young broker and the hot trend then was something called affordable luxury. Starbucks was one of the hottest stocks in that bear market it did very well during that time because if people couldnt afford to buy a brand new f150, fully loaded pick up from ford, they could afford to buy a latte. That is going to apply in this recession. I think starbucks is one of the biggest winners out of this crisis i went to one of their drive through operations having used the app to order there were 20 cars in front of me and i still got done in five minutes. These people are on their game i love that idea that stephanie had. Im happy to be on the same trade with her if ever there was a leap of faith market, this is it you have no way of knowing how long these dislocations are going to last. How long this social distancing is going to go on and you have no idea what earnings are going to be to try and value what stocks should price at youre making leaps of faith based on fundamental analysis, the best you can do it which is so difficult in and of itself right now. Would you agree . 100 . I have no clarity in terms of earnings for any company not even the consumer stables companies that are probably the least impacted or the utilities as well. What im trying to do is trying to look at Balance Sheets because thats really important. If i believe the Balance Sheets are strong, precash flow strong and sustainable then i can believe in the dividend yield. Im buying at a four, five, six, eight percent dividend i do remember back in the day someone said when i first started on wall street, dont fight the fed and they just went all in yesterday i think thats very much a nice fact stop for the time being they did go all in and its powerful those investors as well that ive been speaking with on the side think the same thing. Im looking at the screen now. The major averages is at the high of the day. Right now the dow is up 9 20,2 20,267 the s p 500 is good for 8 on this anticipation of getting something done in d. C. When ever they do schedule and hopefully pass the bill that theyve put forth or several bills as it were shannon, tell me what youre doing in your portfolio today . Taking a look at the companies we own but allowing ourselves some growth. For instance, we swapped out broadcom for Arista Networks if youthink about that trade, broadcom is highly leveraged Arista Network has been hit hard but they have great cash flow. They have no debt. I think that kind of looking at cloud Going Forward, we want to be exposed to that we bought cisco. Its been in our portfolio we added to cisco. We feel that offers us an opportunity to go back to companies we really like we sold boeing ive been with you and talked about boeing over the course of the last year as much as i think there will be some assistance for boeing, i dont really want to buy into a stock that the Free Cash Flow is going to be heavily scrutinized by the government we sold the position it wasnt a great sell we bought it at a much higher price and sold it at a much lower price. When i look at a company like u. P. S. , id much rather have my expectations of growth baked into that stock over the next couple of years. Do we get pop because of the online spopi inshopping were s now . Of course we do. Id rather put it in a name like u. P. S. Versus boeing i think boeing will make it. Its important to the u. S. Economy but my view is theres opportunities to improve the portfolio and take some Growth Opportunities in there were happy with the names that we have been able to swap out over the last couple of days well take a quick break. Up next we have a special guest joining us the interview will begin in just two minutes. Want to give you a reminder as well tomorrow night on cnbc at 7 00 eastern, its a special report markets in turmoil ill be hosting a cnbc town hall the pandemic and the path forward. Gary cohen is the former chief economic add vise adviser to pr trump. He joins us with mark cuban, john rogers and dr. Scott gotley cant wait for that. Well ask our panelists questions, your questions from twitter. Send them to us. Thats tomorrow night at 7 00 p. M. Eastern on cnbc halftimes ckig aer is iba rhtft in the Transportation Industry without knowing firsthandness the unique challenges in that sector . Coming out here, seeing the infrastructure firsthand, we can make better informed investment decisions. Thats why i go beyond the numbers. When it comes to your business internet, which is more important . Okay, i wish i didnt have to choose. Like the more i think about it, the more i want to jump to each room. What if i said you can have it all . Comcast business gives you connectivity that goes beyond. Thats what we want thats speed, reliability, and security, all from one provider. Touchdown comcast business goes beyond with the extraordinary speed, reliability and security your business needs. Call today. Comcast business. Beyond fast. Ithat car is one of mine. And soon, its going to be one of theirs. But they would have never even known it existed. If it werent for the power of targeted tv advertising. Its smart. It grabs peoples attention. It works. Its why Comcast Spotlight is changing its name to effectv. Because being effective means getting results. We are adding to our gains as you see there lets break away to sue for the headlines. Hello heres whats happening at this afternoon. New york states governor is making a blunt plea for more help from the federal government he says confirmed cases are doubling every three days with nearly 26,000 positive cases in the state and 210 deaths he says estimates point to a crisis with 40,000 people requiring intensive Care New York now has just 3,000 intensive care beds in total Governor Cuomo says new york will not be the only state facing such critical conditions. New york is the canary in the coal mine. New york is going first. We have the highest and the fastest rate of infection. What happens to new york is going to wind up happening to california and Washington State and illinois its just a matter of time mexico is stepping up its response to the outbreak with a onemonth ban on all public and private gatherings Health Officials say they are seeing transmit cases. The virus stayed on surfaces for two weeks. Researchers found that among the 712 passengers who tested positive, nearly half of them showed no symptoms for more information on the coronavirus, you can head to cnbc. Com scott, back the you. I was doing a double take at the two plus weeks fact that the virus remained on that cruise ship asymptommatic as well were adding to our gains at this hour. Were pushing close to a 10 gain well show all three right now we might about what might happen across the board green arrows pretty much everywhere for the moment. Our special guest is Brad Gerstner he joins us by phone brad, welcome. Its good to talk to you thank, got. Thanks for having me on. Great coverage the last few weeks. Thank you so much i hope you and your family are well tell me how you view the market here well, obvious today is a historic gain. We all have to step back and realize whats at stake here is way bigger than a one day move in the market. This is not a clearing event for the market we cant look at 20