Transcripts For CNBC Power Lunch 20240713

Month. Regents financial down 18 just catastrophic week this is a week chicos down 43 the kohls. Gap down 28 these stocks have been cut 50 or more in the last couple of weeks. Utilities another sector look at plain old run of the mill electric power companies. Regulated e lelectric power company. Believe it or not, this is a calmer week than it has been in the prior three or four weeks. The volume is about 30 lower than prior weeks the intraday swings are two to three below. The vix is below 50. We were 80 three weeks ago guys, i take no solace in saying were down 2. 4 on the week. In terms of all the craziness we saw two and three weeks ago, this is calmer a month ago i would have thought myself crazy to say that but it is true. Back to you. I think you should try out the vest, bob, thanks. Lets get over to steve who is digging into this devastating payroll plunge as tons of americans are left without work during this pandemic kelly, i got to advise you and tyler to save your adjectives shocking, devastating, stunning are all true by all accounts theres much more to come this job decline only picking up the first part of march or the sec week of march before the majority of the layoffs that we know of have happened. Theres been ten Million People in the second part of the month who filed for unemployment claims inside the report is some data that will probably tell us how this thing will go, at least near term. I want to go right to looking at by sector. Leisure and hospitality down by 459,000. That health care of doctors and dentists office, social assists is close child closing down. Professional Business Services temporary health, retail just leading edge of what were about to see and construction taking a hit losing almost 4 of total employment restaurants and bars almost 3. 5 on down 1. 8 for child care the clothing business, 1. 3 of total employment looking inside the household survey, some more details emerge theres 1. 5 million additional people working parttime because they couldnt find fulltime work 252,000 not at work because of illness. Thats a very high number for this tiechl yeme of year theres also some mischaracterization. The survey responses guys are very bad the people who do the surveys go out and knock on doors they cant necessarily didnt this time around do some of that most of it was by phone. This is the leading edge of whats about to happen its going to get worse. All you can do is think about the other side of this on that note, steve, thank you. We have breaking news out of bank of america on their Small Business Lending Program ive got some numbers i just got off phone with bank of america they are the first of the biggest banks to open their process to apply for Paycheck Protection Program loan. As of ten minutes ago they had over 60,000 applications totaling over 6 billion worth of requests. Astonishing numbers there. They have over a million Small Business customers if it continues at this rate and moe most of their clients apply, numbers will be bigger 60,000 so far. 6 billion of requests so far. They are adjusting their policy to now address all Small Business clients that they have with a checking account. They dont now need to have had a previous lending relationship with the bank. You and kayla discussing last hour how that attracted a bit of heat from senators like marco rubio. Its kind of a loselose situation. They were trying to do that for clients they had the most detail on be p either way they have adjusted the policy as things stand. Those numbers highlight they have been open to 60,000 customers in a way that perhaps some of the other banks who hnts opened yet were. Some pretty staunching numbers it is a first come, first serve basis which worries some Small Businesses if it goes past that total 350 billion, they will be open to extending that amount. Thank you if you take this number and you take it and extrapolate it across all the banks this is one bank 60,000 today alone take that across the major banks and take that to the td banks and the local banks that are doing this you just wonder whether the computer infrastructure is going to be able to handle it or is it going to be reminiscent of initial response to obama care back a half dozen or so years ago. The numbers are just unbelievable tlouts the last couple of days theres been criticisms and complaints flying around who will be ready by midnight, who isnt going to be ready. Clearly for any Small Business that thought they would be getting the money and hasnt gotten it yet, the pain must be indescribable. If we get to the end of next week and everything is up and running and running smoothly, youd have to say a program this would have taken many, many months to get ready and if the banks get it going with the space of say two weeks as opposed to one week, initially, then perhaps thats something that would have to be applaudsed at the moment were still stuck in the middle. All right thank you very much. Lets groive you a quick market check. The dow industrials are moving off the lows of the day when we began the hour they were down about 500 points now down just a bit less than that as youll see in a moment ive got a bit of delay on what we call return here in my home studio again, the markets on pace for yet another down week and a rocky one. Lets turn back the our coverage our next guest says the relief measures taken so far are not nearly enough to help blunt the affect of coronavirus on the economy and that businesses are facing an acute cash vacuum. Lets welcome in joe davis hes the chief global economist at vanguard. Mr. Dairvegs yvis, you say ther acute cash vacuum that will crash upon us but you also say the gdp is likely to have a downward spiral that we havent seen since the 1930s my question to you, sir, if that happens, is the stock market ready for it has it discounted that possibility. Thanks for having me, tyler thats stuff to answer there may be volatility ahead. The market is increasingly pricing in a pretty somber outlook. Some of the policy responses wel the Federal Reserve and the kars act. I think its insufficient given the head winds we are facing ron, you cant really imagine what it would be like if we didnt have these maneuvers from the treasury and congress and from the Federal Reserve do you think theyre going to be enough to stabilize things the amount of damage that is being done by the minute in the economy is really incalculable i would agree when you look back across history weve never seen an automatic shutdown of the economy like this. Even if you go wback to the depression, there was a build up to the weakening it occurred over three years and reached it in 1932 when the Unemployment Rate hit 25 . Here were likely to hit 15 to 20 in a matter of weeks, if not months, which is something we have not seen. The relief programs, so far, ive been reviewing some of them because im Small Businessman myself seem to be quite reasonable i do expect they will have to be extended its hard to imagine they will be able to fill a multitrillion dollar hole in the economy in excess of the 2. 2 trillion relief package thats been passed theres also another 4. 5 trillion will lending from facile tisilties in the federal verv reserve. Unemployment insurance will be extended that will hopefully help mitigate some of this. Are you in the camp that believes the return to Something Like normal is going to be swift or are you in the camp that believes that maybe were in for not just a quarter or two quarters but maybe a much longer time where we bump along the bottom economically. Wish i had more confidence in it i think we will see hoping that they will come when the virus really dissipates and we can lift some of these containment workers. When that does, i think well get modest growth rate bounce. I think were in a vulnerable stage here the next several weeks and months are critical because theres building solvency credit issues the economy ultimately needs cash, not credit i think as ron said, i think that the assistance to Small Businesses will need to be super sized by my estimates. Sg i want to ask you both a final question as we have been talk over these past couple of month, people have been saying at least this is not a financial crisis like 2007 to 2009 yeah, i think that might be optimistic on the parts of those suggesting this isnt a financial crisis its an economic crisis. It has to a certain extent mo h morphed into a financial crisis of sorts clearly the banks are far better capitalized and are not the source as they were in 2008 and 2009 having said that, when you see the number of levered loans and the high yield market which grant it spreads have tight tennesseed of late, when you see the dislocation going on in credit, theres going be some problems there that mirror a financial crisis maybe not to the same extent we saw in 2008 or 09, but its going to ripple through the system joe, ill give you the last quick word on that question about whether this could morph into a financial crisis or may already be one were on the precipice of credit issues accelerating were in a critical juncture id like to not completely close the door and say a crisis is a fore gone conclusion but the next several weeks and months are an important point thanks very much. Gentlemen, stay safe have a good weekend. The white house is set to meet with Oil Executives this afternoon as crude prices have fallen 43 in the past month it was worse a couple of days ago. Theres been a bit of a bounce back eamon is covering the meeting and Everything Else from the white house today. Were expecting that meeting in about 45 minutes time were told the Oil Executives will meet with the president directly and larry kudlow to set up the meeting was talking to reporters earlier today. He was asked if the United States might consider cutting back back its own Oil Production out of the gulf of mexico as part of a global cut back. Here is what he had to say earlier today. Production cuts arent a discussion have been President Trump talking on a number of occasions with president putin and mbs of saudi arabia. President trump believes that they have given agreement anden spat saying the production cuts the white house are envisioning are over in russia and saudi arabia and saying the president believes he has a commitment i think the emphasis is on the word believe the russians have been skeptical about a commitment Vladimir Putin said he could see a cut around the world its not clear how much from his comments he envisions russia doing as part of that cut and whether that vovrs the United States cutting as well all of that will be on the table here for this Oil Executive meeting. One of the big issues im told, they will be talk about is this idea of tariffs on saudi oil thats something that a lot of people in the oil industry believe the president is interested in doing but a lot of people in the oil industry, some of the big producers dont like that idea. Some of the little guys do like it well see where it all lands at 3 00 p. M thanks. Great reporting as always. Coming up, well have more on oil, the market turmoil, the s p and another volatile week down about 3 its utilities leading the declines once again today. You can see them Many Companies are laying off employees despite the federal governments effort to provide relief for businesses. Some are doi ingt in an unusual way. Well dig into that story, next. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. For a prospectus containing this information. When yowhat do you see . Itical issues facing our world, we see a billion more people breathing free. We see access to fresh food being the global norm, not the exception. We see homes staying cooler, without the planet getting warmer. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Welcome back the number of americans losing their jobs is skyrocketing as more and more companies are laying off employees in a new way amid the coronavirus outbreak we have more on that for us. This is a conversation that perhaps we never expected to have but in this age of social distancing, a lot of companies or some companies, big and small are turning to video conferences Software Programs like zoom to virtually layoff some of their workers. Class past confirm they had the layoff some of their workers via zoom sephora did layoff about 3700 seasonal and parttime workers for sephora part they say they have employees all over the country. Though it was a tough decision, they felt like conducting these layoffs in this method was the best way to do it. Some have called it callous. We speak to one worker from sephora. She tells us there were more than 100 people on that same call take a listen. Its just the fact that it happened and it came so suddenly after we had been told we would be taken care of and still be on payroll. We would still have jobs sephora did offer the workers some severance with the Hashtag Boycott sephora on twitter saying the way this happened was callous and urging people to stop shopping there. Back to you. All right ill pick it up from there thank you very much. With more more people out of work, what could the next few months look like in this country. May mayor, its great to see you obviously, this illness so far, so far is centered in large urban areas which is really your constituency what are you feeling out of those kpluncommunities . In theres a great deal of anxiety and fear in my hometown of new orleans we lost Ellis Marsalis and a number of other people that were prominent in the Community High School Football coaches and others its beginning to touch very close to home. This becomes something very different. People know, people who have lost their lives its beginning to hit close to him. You have a Public Health emergency thats initiated an economic emergency the third thing is the level of uncertainty. We dont know when physical distancing will end. We dont know when broad testing or vaccine will be available were looking into the future and theres a great deal of uncertainty all across the land but certainly in urban communities where the virus numbers have been high dont say because its high there, it cant come to me baud because of the spread of this disease. Its now in every single state and territory in the United States to a different degree we dont know what the future holds. The spread and the speed of transmission of this disease is something that is really just something we have never seen, at least in my lifetime i was speaking to a physician maybe six weeks ago and he said every one in this country will know someone who gets sick and most people in this country will know someone who passes away from this. I want to turn the conversation in a different way i know youre a spiritual man. What is this doing to our soul its challenging our soul because its forcing us to be patient. I think have faith its also challenging the sense of optimism. Its easy for there to be great deal of doom and gloom because of the uncertainty and the fact this is global in nature its not in one community. Most emergencies may affect a community. A Natural Disaster may affect a region even a Global Economic downturn like we experienced ten years ago. It did not have the affect that this is beginning to have on all of us. It tests our faith but it tests our perceconfidence in ourselves human beings we got have faith and pray for Health Care Workers and those on the front line we got to pray for the elected and Public Officials who are working, i think, for most part, in a diligent way to help to lead the best and most responsible responses to this. I was going to ask where you turn for spiritual help now and you answered it. Let me angle another question a different way. Peoples sense of selfworth is tied up very intimately in their work and what they do. It gives them a sense of worth, a sense of contribution. When you see 700,000 people now having lost their job in the past month, six Million People yesterday filing unemployment claim, what will it do to peoples selfworth and how lasting do you think that damage could be its so stunning, ty, the actual numbers that we see and phone calls ive fielded have been from Small Business owners that have 50, 75 employees to people who were selfemployed. For a minute they get their bearings and they begin to wonder how will i make it a month from now or two months from now are these Government Programs going be temporary or will they help me transition to when the economy is in deeds bdeeds bettr the uncertainty and anxiety that is beginning to affect people and family children not being in school not knowing when they will be able to resume their studies will they have to repeat a semester or a grade. All of these are considerations and factors that are affecting the average american, American Families and people at every level of the economic ladder those at the bottom, the working people who work from paycheck and live from paycheck to paycheck will have the most amount of stress i think theres going to be a need for covid not only four but maybe five and i want and encourage theelected leadershi of this country to move very quickly to do whatever is necessary to bridge people over to what i think is going to be a better time. We need that vaccine i think the uncertainty around this is going to continue until theres a vaccine that protects all of us. Thats what im hoping for thats what im praying for. Until we get that, theres going to be the uncertainty whether this virus will subside. It will reaccelerate, whether it gets cooler in the summer. We just dont know realize were all in this as people together. We have to look at each other and recognize were all in the same boat. Im sorry to interrupt. We have to levave it there thanks for the conversation. I look forward to the day we can talk about the saints and lsu football great to see you thank you lets get over to willford frost for the latest good afternoon. The head of the International Monetary fund says the pandemic is humanitys darkest hour and a big threat to the whole world. The World Health Crisis like no other. We have witnessed the World Economy coming to a stand still. We are now in recession. It is way worse than the Global Financial crisis the World Health Organization says airborne transmission is contributing to the spread of the pandemic the pain drimain driverer is pe contaminating surfaces and other people coughing and sneezing part of chicagos Largest Convention center is turning into a hospital. They will be able to handle 3,000 virus cases with less severe not requiring intense ifr ca intensive care head to cnbc. Com back to you. Thanks very much. Drug shortages were a problem in the u. S. Before the coronavirus pandemic but the outbreak is putting even more pressure on the Health Care System lets go to meg for those details. Meg. Experts say there are three reasons that are kribcontributit the exacerbation of the already huge problem of drug shortages there are more patients being put on ventilators so drugs use to support that are starting to spike. Med kicines used to treat covid1 are seeing spikes. In terms of those ventilator drugs, looking at demand spike, representing a huge number of hospitals in the u. S. , they see sedatives and demand going up more than 50 in march only 63 of those prescriptions can now be filled according to this data which you can see here pain medicines seeing a mayjor spike in demand and only 73 being filled al drugs to treat covid19, this is according to another company the antibiotic which can treat secondary infections and is tested as a treatment with hydrochloroquine chloroquine, demand spiked 3,000 and albuterol seeing demand spike we want to draw your attention to the issues of our supply chain coming from china and india. Some of the production may be getting shut down, according to a study from the university of minnesota and some of those drugs might be blocked leaving the country. This involves things like antibiotics and albuterol. It adds up to a very concerning picture. One of those researchers says hes getting more and more concerned every day. Back over to you meg, would you say in general, the shortages are in treatments directly related to coronavirus. Because we heard so much object the chinese supply plain of every day medicines before us, more common medicines at this point. Its both people who use these medicines for other diseases are having trouble getting them as well its a whole downstream effect its playing out across the system im sorry, youre hearing my dog bark at mailman. We just request a visual at some point thank you very much. I think the dog was saying he agreed with everything you just said, meg. Thanks again still ahead, companies are closing their doors and furloughing workers. Its unlikely that they will be able to pay their landlords. Well look at the potential fall out inthe commercial real estate world, coming up. First, governments, the government Small Business loan program has begun but not without a few hiccups to put it mildly what Business Owners are saying about the process. Please remember that you can always watch or listen to cnbc live on the app. Cnbc app well be right back with our breaking News Coverage of this market in turmoil. Can find yourf heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. A partner who makes sure every step is clear, [female vo] restaurants are facing a crisis. And theyre counting on your takeout and delivery orders to make it through. Grubhub. Together we can help save the restaurants we love. Wont be a new thing. And it wont be their First Experience with social distancing. Overcoming challenges is what defines the military community. Usaa has been standing with them, for nearly a hundred years. And well be here to serve for a hundred more. But right now, the world needs all the good that we can do. To everyone working to keep america strong, thank you. And sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. The dekrien has taken it back below 21,000. Its down 450 points now 2. 1 declines across the board for the dow, s p and nasdaq. The russell 2000 which has been struggling the oil market is closing up for the day. Crude climbing higher again after its best day ever yesterday. Today its up around 12 this after Vladmir Putin said russia is worried about the Energy Situation and wants to join action on the oil markets theres the price of crude at just about 28 a barrel and 34 for brent. Bryan, theres been so much news on the energy front even in the last couple of hours i dont know if you caught our interview with the Texas Railroads Commission who said they would be on board with cuts and looking at quotas. Theres a lot to keep up with. Who you telling i know is it time for an adult beverage i guess not. I have a show at 5 00. We have a opec, i guess well call it glopec meeting on monday putin coming out saying ining d be happy with 42 oil. Something efb verybody is wishi for 42 im not trying to dampen the fact that oil is up. Lets be perfectly clear everybody, everybody was short oil. Like i can go ask the mailman who just megs dog just barked at, he was probably short oiled. I heard ryan saying you said were trying to prevent oil from going to Single Digits if you think this Oil Wild Ride is over, maybe youve already been drinking. All right bryan, thank you very much it is 5 00 somewhere all right. The government Small Business loan program has begun and it was a bit of a rocky start with bank of america being the only lender up and running and some of its customers are still getting shut out kate rogers have been talking to Business Owners about how they are navigating, what they are experiencing and finding kate thats right. As this program gets under way, Small Business owners are anxiously awaiting to hear from their landers. Earlier in the week we introduced you to jason duff remember he runs a Company Called small nation. They revitalize small siz cicitd towns. He owns a few restaurants and a landlord of many consumer facing businesses due to late changes, duff had to resubmit a new application to his lenders this morning and hes hoping that help comes soon the anxiety is high im logging into my bank account waiting for the funds to show up i have employees to pay. I have rent to pay i have a food truck that is showing up in a few hours that i need to make sure when i write that cash that i can cash it they have received loan as of just yet the sba administrator says the program has made more than 5200 loans. More than 1. 8 billion. Thats a total of 334,000 per loan per Small Business. One more reminder to our independent contractor and selfemployed Small Business owners that are watching, they have to wait one more week until april 10th before they can be a part of this program Steve Mnuchin has help process nearly 900 million in Small Business relief loans. Bank of america has seen nearly 60,000 applications worth 6 billion. Jpmorgan went live in the past hour or so wells fargo and city citi are still unable to do so. I know you were very concerned about this program being ready for prime time are those concerns validated or squashed today no question theres been concerns especially with the lenders across the country the guidance, they received updating guidance last night it was leased last night at 10 44 p. M. Eastern most lending institutions have been working through night to be able to accept Applications Online accept the high demand that is coming from their Business Owners would you say disaster is averted or just slow rolling the challenge is we have millions of Small Business owners that have been communication they received is hurry and apply to your Financial Institution because theres not enough money to go around the backlog and the demand from Small Business owners is through the roof th theyre not up and running to process them we have the weekend. By monday most of the technology will be in place and lepnders will be able to process at a much more efficient manner explain the role in this. Were the largest marketplace for Business Loans in the United States wp we work with thousands of Financial Institutions on one end including banks, Credit Unions and fentech lenders on the flip side, our goal is to help millions of Small Business owners to navigate through this lending process. They can come to us, fill out the application and we match them up with the right lender who is funding these loans i wonder, theres a lot of different types of banks participating, some people have existing relationships and thats great a lot of people might not or they might be old and might not have checked in and cant get through the call system. Should they continue to try to work their local banks maybe instead of a National Branch or should they do the opposite and almost try to look for help from an online bank with an online interface and jump in the cue for that if you approach your local bank you should be able to get your information quickly and know if they have an appetite to participate in these loans many of them will say no were not going to participate others will say were planning to but were not ready et. We partner with jack henry which is a Large Institution that has 7,000 banks. We are helping those banks get up and running so they can accept applications as quickly as possible. A lot of these banks will come online most Financial Institutions will be online and participate on these loans. I would hope and brock thanks for joining us with more information about how to do this my pleasure thanks for having me be sure to tune in tonight at 7 00 p. M. For a cnbc special report the path forward with marcus lemonis. Tweet your questions using the hashtag. Cnbc forward tyler. Builders have being dealed essential which could really determine the health of the Housing Market not to mention millions and millions of jobs well dive into that next. Look at the tickers that have been the top ones searched today on cnbc. Com. Tesla topping the list followed by the dow jones well be right back. When you look at the Critical Issues facing our world, what do you see . We see a billion more people breathing free. We see access to fresh food being the global norm, not the exception. We see homes staying cooler, without the planet getting warmer. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Im part of a community of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. From packaging tape. To tape that can bond materials to buildings. And planes. One idea can unlock a breadth of solutions. At 3m, we are solving problems that improve lives. Welcome back Home Builders etf is down 16 so far this week alone. On track for one of its worst weeks ever builders are now considered essential. That could give both developers and the Housing Market and workers a boost. Diana joins us with that story hi, di reporter builders are considered essential by the federal government but certain states, namely new york, pennsylvania, michigan and Washington State are not allowing construction to go on i spoke to a few workers on site here where they said they feel comfortable with all the the protective gear which is similar to what they wear any way. One said he was just glad to have a job he had bills to pay. We did see a decline of 29,000 construction working jobs in the jobs report but a slight rise in Residential Construction up 2,000 a survey just out from the National Association of Home Builders showed 13 of hold builders reported problems of workers showing up the ceo that is developing this site has a billion worth of product under construction says if skilled workers have available, hes hiring keeping construction going is essential to our economy in many ways shelter is as critical as food and water. We need to continue building so theres not a shortage of housing downstream particularly, affordable housing. Reporter some of the nations largest Home Builders say they are still putting up homes despite a huge drop in buyer traffic. Kelly. Thank you so much with more people working from home and businesses closing down, commercial Real Estate Companies across all industries are struggling to elect rent here to talk about the impact is spencer. Levi are people able to see through the other side of this and able to offer forgiveness how is it all working out . They are able to see through as we all hope this will be relatively short term in nature. Its fair to say the next 45, 60, 90 days will be challenging for the commercial Real Estate Industry that comes in form of people unable to or not paying rent and also landlords unable to pay their pormortgages as a result. During this period of shutdown different elements have been hit differently. Probably the hardest hit are hotel and retail the other Asset Classes but no assess class is immune tom said it could go become and affect the banks that are big lenders to this space. Do you share those concerns . I think he gave what i would characterize as a worst case scenarse nar scenario. He backs it up but tremendous amounts of evidence. We need a lot more the best area of protection they came in was in the form of protection for fanny and freddie mac where they allow people to not pay their Mortgage Loans in exchange for not evicting ten t tenan tenants. We would love to see a similar type of Government Protection in bank, Insurance Companies and conduit lending where it doesnt appear theres any Government Support at the moment. Do you think that will be coming the first face of this was aimed at people themselves who were laid off and cant afford the payments but on the business side of this, the same effect is happening. When you say further spoth uppo needed, what does that look like well see those that cant operate or going either cant op race of going out of business, we want to see their workers protected. We then move up the chain. We want their businesses protected so that they can pay rent to that the landlords can then pay their mortgages but this is going to take time maybe too much toim when youre a landlord that owes a mortgage payment so wed like too to see more direct cash fusions or programs similar to fannie mae and freddie mac to spread into banking, Insurance Companies then the conduits. More direct support which would prevent more leniency on rent relief one thing we learned when you lose your house it goes back to the bapgs and the banks didnt have the where with all to deal with them and were damned if they did or didnt what happens to commercial real estate on default . Does it go back to the banks on clal rat if youre a landlord and own a Shopping Center and cant pay your mortgage, you will ultimately be whats known as foreclosed upon, same thing as Single Family and it will go back to the bank or special servicer so the implications for commercial real estate landlords are just as serious and significant in Single Family from the standpoint of the potential to lose their assets zpl thanks we. Thanks. Well see what else is on the way. The head of research tyler. The dow is on pace to finish the week lower now down 29 from its record highs just six or eight weeks ago. Well tell you how to know when its safe to get back into the market after this. Stocks are paring their losses but it has been another volatile day on wall street. On pace to close their Third Straight week. Third out of the last four my next guest isnt convinced weve bottom yet but has an overall hopeful message. Michael farr he is a cnbc contributor michael, i suppose in a market like this, its a question of both when you buy, but maybe b even more importantly, what you buy and i know you would counsel whether it is fixed income or equity to buy quality. Every time, tyler, you really do have to pick your places a little bit but i, i think we are still seeing the evolution of this crisis were still expecting the peak in this disease to hit in the next couple of weeks were still seeing economic numbers decline. Unemployment numbers increase. And stock market numbers have been very volatile el arian was saying he thought it was premature to think the bottom was in. Wouldnt even say we were in a bottoming pattern yet, so in that wait and see data dependent mode, the risks look like herd mentality. That group think that seems to be expecting a peak and a recovery and everything to work nicely when things dont work nicely and when the group gets disappointed on wall street, the group sells and you dont want to get caught buying in front of that well like mohammed, you say youre not convinced were in a bottoming pattern just yet, but you say to choose companies that will endure. Can endure, not just for a couple of months, but for a couple of years. What kinds of companies or names of companies would be on your short list right you know, i think you have to in these times, think about what successful investors do. Which is they dont panic. They are greedy when others are fearful. They buy low and sell high so you think like Warren Buffett a little bit things are going on sale, but more defensive names that are going to get through difficult periods, the pepsico las johnson johnson, proctor and gamble, where people are still going to be buying chips people are still going to be using Johnson Johnsons products microsoft. Abbott labs. Companies with great Balance Sheets not too much debt. Very High Quality Companies that have cash flow and stay away from those more speculative companies. The most difficult thing that i have to do 33 years of doing this through 1987 and 9 11 and certainly the financial crisis is to counsel individual investors not to panic not to make chose emotional decisions that always get on the neck in the end. If you have a longterm view, if youre a longterm investor, you can stay with that quality you can endure and deal with those emotional decisions. Like Warren Buffett, you can be opportunistic and take advantage of some of these fabulous World Class Companies when they go on sale final question. My guess is that we may be months, maybe even years away from going back to the records we saw just six weeks ago. Whats your thought about that when we say it might get better, it might not get that better that quickly this could be long time so part of my advice is expect something worse than your sort of bad Case Scenario expect stocks to fall another 10 or 20 from what your low is now. Expect this to last longer that way you wont be shocked and surprised and youll say all right, i can think a way of getting through that it took three years for Airline Passenger volumes to return after 9 11 to pre 9 11 levels. I think the same probably is a reasonable expectation but it probably a year from now, were certainly trading off of these lows we are beginning to make progress back to those old highs and we are back in that expansio expansionary building phase we all so desperately desire, but probably cant rush. Michael, have a great weekend. Always good to see you, my friend great weekend, tyler. Stay safe and healthy, everyone. You, too. You know, kelly, it has been a heck of a week i guess oil has been the real bright spot over the past couple of sessions. Upping c insignificantly again , whether theres a production agreement or not, but it has been a wild, wild week no tie friday. Im going to wear red ties on red days next week green days on green days im getting ready oh, by the way, listen, i want, alexa. Alexa, play welcome to my house by flo rida. Only if i can sing along. Im getting ready for my supermarket trip siri just brought me something. This is our new reality, ty this is life in 2020 everybody b is welcome to my house. I did this wrong. Everybody is welcome to my house. Thank you all so much for watching have a good weekend where ever you are, be safe closing bell picks up our coverage now i have a coffee and water, but cheers from sara and i to you both for an outstanding show and outstanding week of coverage we still have an hour left of trade of this crazy week on wall street once again and we are sitting red at the moment for the session and week as a whole. Down 1. 7 . Down 2. 25 for the week as a whole on the s p 500ment rhett aes have a look at whats driving the action today disstressing news on job front the first decline in nearly a decade oil continuing its rebound as President Trump sits down this hour with executives from u. S. Energy companies and relief on the way to some Small Businesses slightly haphazard way, but none is less, some are gettin