Since february 5 and 6 thats right, it has been about a month and a half since february 5 and 6 for the dow and february 13 for the s p 500. Right now, it looks like the yield is at 0. 858 andrew we have a huge lineup of guests today out of washington James Bullard talking about headlines. Tom barrack and former federal chairman ben bernanke. Living through the crisis of 2008 and studying the Great Depression all of that coming up over the next three hours to the news that broke overnight. The white house and the senate announcing a deal. Well get to leaSteve Liesman f more on that and eamon with more. It was in the 1 00 a. M. Hour that it broke overnight. What we have here, joe, is a handshake deal we dont have a vote and we dont have the explicit text what we have is a deal here is how Mitch Mcconnell announced the deal at 1 00 a. M help is on the way. The American People are already rising to this great challenge the senate is about to follow suit well pass this legislation later today. So here is what we expect is going to be in there again, we dont have the final text yet but what we are told, it is a massive 2 trillion deal the center is direct payments to americans across the country that will be 1,200 for people making up to 75,000 it gets phased out around 125,000 in income 2,400 for couples making 150,000 and 500 for each child. 100 billion for hospitals, 350 billion for Small Businesses, 500 billion for corporations. For Small Businesses for those who dont fire anybody in this to pass it on the floor, the question is how quickly this could hit americans paychecks thank you we want to bring in steve lea liesman for more on the Economic Impact of the deal good morning. I want to talk about one component eamon just talked about. That last bullet point that talked about 500 billion to corporations he said the center piece is the aid to people. By the time that fed gets done with the 500 billion, that could be the centerpiece i want to mention the treasuries Exchange Fund will be replenished. That is important because that opens the door for Federal Reserve fire power to deal in a broad based way throughout the economy. We are talking about a couple of things here first, it has never happened in the history of banking what is about to happen here second, 400 billion becoming 425 billion these are some of the things bernanke will have to deal with. How does the Federal Reserve lend to a nail salon, pizza restaurant or small rural manufacturer how does a central bank become a commercial bank . Who makes these approvals . Lets talk about how 425 billion becomes 4 trillion in potential lending. The Exchange Fund which the treasury secretary deals with. This esf provides the backstop or the losses of what will probably be a new Federal Reserve entity commercial banks will probably provide some loans to Small Businesses the federal entity will provide these loans. It could be a few weeks before these are up and running 5. 5 billion Small Businesses in america. How do you get loans to 5. 5 Small Businesses no one has quite figured it out yet. All of this has to do with, you asked me about the Economic Impact when does it arrive . How is it used i dont think there is any amount of money that puts the fall outback in the bottle here. You can alleviate but you cant get it back. Is there a part of it that you would have local banks that are loaning to Small Businesses in the town . That and potentially state grants, local grants i cant see how that is done you are right, becky. You have to think about ways that you funl the whole process towards a more manageable number there is Something Like 7,500 banks. Im assuming that on part of lawmakers here, that every Small Business has a bank account and somehow that can be used to provide loans. There will have to be protection for the fed. You can imagine if the bank brings a loan of 100 that the fed can loan against that. Remember the fed by law cannot take losses. That doesnt even mention the idea of the feds independence and how the fed will be involved in really a whole fiscal program. Remember back in the crisis of 2008, there was concern about the fed even buying mortgages, now it is going to loan to nail salons the other question, some people look at this as a liquidity crisis especially if this is a shortterm situation, if you are a believer that we are back in business in a month or two some believe that is an aggressive situation some believe banks will lower their standards for these loans. One of the things i think youll start hearing is that Financial Companies like square will have more access to the day to day of the business because of the systems you have in place. They can see what is going on inside these businesses that they would be able to extend loans more quickly than a typical bank might given a relationship what do you make of that i think it is a good point, an interesting point if you have the ability to do this, my hat is off to you we have the Small Business administration while they do some very good work the sba is not set up to provide money quickly. It may be one of those things where it will have to look the other way at whatever the fallout. There is almost certainly going to be abuse in this business it did more good than harm, lets look the other way i dont get it i know the fed is working on it. I got two different messages from the fed that we heard very soon and then we heard weeks for this to happen i know powell and the treasury secretary are talking often. I know the fed chair is also talking with congress through this they know the thing has been coming theyve been doing a lot of other things like whandiexpandio corporate bonds. Those are new programs too if they had the bandwidth, my guess is that theyve been working on it. Listen, there is something about this that is worth talking about. When does it arrive . When do you want it to arrive . It may be one of those things that the federal bureaucracy works in our favor there may be a sweet spot beyond the closure whether it is better to get their money there people dont pay their bills toer a little while. It could be a one or two month delay that could work in the economys favor. The two other questions i have for you if you are running a Small Business today, because they know these loans are coming, whether they will be more for giving, if you will over, giving people a 30day grace period as people set these things up i heard about an rfp going out from the sba for call centers so they could handle 30,000 calls a day and looking to hire Loan Officers there is clearly movement afoot to get this going even before the program is here. Right and i might get a call from the sba when i get done with this. Maybe they can get up and ramp this up quickly. Yes. The Federal Reserve has already given guidance to commercial banks that you can restructure those loans. Take that to the feds window. The fed will finance that loan already a main Street Program out there. That will happen piece by piece, bank by bank, loan by loan people disparage the crisis of 0809 for lending. But how do you do it even if it is a quarter of that 5. 5 billion it hasnt been figured out yet okay. Talk about the markets for a second weve thrown a lot at it steve, the word for the fed on 60 minutes we didnt mention it at the time this was the word, to infinity and beyond they dont realize that. They really do have the ability. Thats what we are seeing. Well see what happens for me having a 22 gain, most people think the backdrop of the coronavirus pandemic will cause the market to be volatile and sell off again it gives us 2,300 points of cushion before we make new lows. Maybe we can absorb some bad news i havent blocked everyone on twitter. Did you see this it is ironic that this deal that it was a handshake deal. Ironic it should have been, maybe a fist bump deal or elbow deal. You know me, i dont do handshake deals. Youve been right about that. Ive never worried about it hugs and everything. What are we doing . These people are walking germ factories . Youve finally come around, joe. This sixfoot thing now you agree with me, i may have to rethink my standards this 6 foot thing, except for my family, i May Institute this permanently. Why do you need to get closer . Today, it is going to be an important day for a lot of reasons. Im in new york city this is the epicenter. You got out of here. You saw what they said in the white house briefing, anybody who has been in new york city has to go home and selfquarantine. What does that mean for you . I have a dhs letter that im an essential communication employee i havent seen a person here i have a robotic camera. The only person here i do my own makeup i stay home all day out there, so i think im complying, right boy in the bubble yes i dive into my car i was talking to my driver today, are you picking other people up throughout the day no. No there is no business, either, which is crazy i said are you wiping this thing down he said after you, im wiping it down smart man bullard and Brian Cornell from target. I saw you were going to interview bernanke looking forward to that, andrew. Okay a lot more coming up on squawk box. More on the relief package coming from Washington Well hear from former fed chairman ben bernanke in the 8 00 hour. Tonight, you dont want to miss this a town hall on the pandemic and the look ahead special guests include former white house advisor gary cohen and mark cuban send in yourueio qstns and responses to cnbcpathforward. Tomorrow. Its a day filled with promise and new beginnings, challenges and opportunities. At Ameriprise Financial we cant predict what tomorrow will bring. But our comprehensive approach to Financial Planning can help make sure youre prepared for whats expected and even whats not. And that kind of Financial Confidence can help you sleep better at night. 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Yes anticipating the deal and acknowledging the move by the fed but also acknowledging how outstretched the sffed is all these things, i think, did lead up to the size and springiness of yesterdays bounce i think when you look at the character of the rally yesterday, you can plausibly say it checked off a lot of the boxes you wanted to see in terms of the volume response and things you wanted to see the historic gains you wanted to see has happened which is not necessarily creating the historic low we could probably go up another 12 . Looking at the twoyear s p from here that history is important in terms of the dynamics and psychology creating a solid bottom we dont know if the market is sniffing out something or responding to the technical conditions of the fed in the worsecase scenario. Japan has pointed out as we have seen in the last three or four days. I dont know when sentiment works and when it doesnt. A lot of smart people. I havent seen a single day. It is easier to say, no. It is not over yet i have that same inclination to say that with a backdrop as scarey as it is, you cant possibly know the future to say the lows are in, youd have to be nuts. No one is saying that. All the smart people are saying no, no, no thats right. You want to be open minded about it we did not retest the lows we keep talking about 2008 what they didnt have in 2008 is what everybody remembers and thinks is the model for today. I do think the speed of the response in both markets and in terms of fed and fiscal stimulus is probably something a little different. That failed rally in 2008 was because tarp didnt seem to be enough. It was almost more of a decaying of the economy that happened you have sto be open minded abou it in both directions. I dont hear andrew he lost his mic . Okay lets bring in barry and stephanie link, a cnbc contributor. What do you make of the point that the consensus right now that no one believes i cant believe it either that it would be that simple. How about you . Thats all very logical im sympathetic about some of the comments jim cramer made last night when it comes to the fixed income market. What we talked about last week was that the Mortgage Market needed to clear. We have seen all this evidence of mortgage wreaths being liquidated i think the fed is gaining traction undoubtedly because of the market being confirmed the fixed income looks like it is starting to faed. That information is going up that is a plus we are in the vicinity of making a low. Every recession since world war ii we shouldnt go farther on 2,150 on the s p unlesses this an opec embargo. Otherwise, weve done the amount of damage that we should do given the pending recession that should be fairly quick i can go to stephanie and we dont even need to talk about the overall market i bet if we could find individual issues that have compelling reasons to start acquiring them right now whether it is the ultimate lows or not i would echo what barry is saying in terms of how underappreciated and how tight the bond got thats what we really needy want to do a barbell and some offensive those recovery names are the ones that got hit hard i think as china recovers and stabilizes i want to own microsoft, they own skype, which we are all using right now. The Free Cash Flow is enormous the only problem is that it is only down 12 . Im almost rooting for it to go down more. Bristol meyers wells fargo is now yielding 7 the ceo and ex ceo are both buying stock it is down to stop the buy back theyve got a new coo and there is a lot they can do in terms of the cost efficiencies. I want to barbell it with defensive and sick call. I like the background there thank you both, becky. We are still awaiting details on what we can expect from the bailout package when it comes to airlines looking at the big winners yesterday with the dow and s p 500. Squawk box will be right back. 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. Good morning welcome back to squawk box. We have breaking news out from target talking about the impact it has been seeing from the coronavirus in its stores. They are seeing a huge surge in traffic. The ceo of target talking abou changes and plans they have at this point they need to focus on the business at hand making sure they have enough stock and supply getting to their stores theyll change the number of remodelling and Stores Opening at this point, theyll probably have 130 for remodels instead of 300. They are also talking about new smallformat stores. It takes away from the efforts that they are facing in terms of trying to make sure they have plenty of items to stock selfs. Talking about what they are doing for associates they are raising pay for associates by 2 an hour until may 2nd. Giving access to paid leave to team members who are 65 and older, pregnant or have underlying illnesses and giving bonuses to frontline workers and bonuses. There is a lot here to make sure stores stay clean too. Well have Brian Cornell with us to talk about what they are seeing, what surges they are seeing in traffic and the impact for guidance on wall street. All of that coming up. But that is the breaking news coming out of target right now andrew thank you, becky in the meantime. I want to get an update on airlines as we await word on what kind of bailout they can look forward to from washington. Phil, good morning good morning. One of the things expected to be in the final language of this senate bill that has been approved is that the airlines will be getting 50 billion through direct grants and some loans will require that they not layoff or furlough any employee. With that in mind, get ready for what we are expected to see. They are going to make cutbacks and services in terms of how employees wont be furloughed, will have their time cut back or pay cut back delta announced to the staff that they are going to go to three and fourday workweeks, ground employees and thats another 17,000 that have said, look, ill take a voluntary leave of absence those ground employees will do this over the next 90 days here is the reason why look at passenger traffic. There is very little revenue coming in to airlines right now. Sclekted to lose 350 billion. The other thing airlines are doing, American Airlines will cut Inflight Services what does that mean . The one that will get a lot of attention is the fact that in the main cabin, they are not doing alc