12 Million Barrels a day, flooding already saturated global market. That saw crude drop 30 . 10year crashed below 50 basis points and now there is concern we could join other western nations with negative yields, japan, germany, switzerland, netherlands, belgium and france. Major markets around the world before the u. S. Opened sparked enough selling for Circuit Breakers to limit preopen downside. Those limits are drifting in, Circuit Breakers once trading got underway. To discuss, erin gibbs and Capital Wealth Planning chief market strategist, jeff saut. Jeff, great to have you in studio. Pleasure. Connell charles my man, youve been calling it up and down. Youre reworking mod tell feverishly as the numbers change dramatically minute to minute. Where are you now . I was on your show in january, short term signal ad sell position. We told me to sell positions and raise cash. I didnt think it would be this bad. We were dealing with the virus and bernie surge in the polls. This collapse of oil caught me entirely. We broke major support points. Like the heart patient doesnt get off the gurney and run the 100yard dash, this will take a while to con have less. Charles dont lay there, get the circulation going. People looking, when is the market getting up, were not looking for the hurdles but show a little resolve . This is interesting, we have such shortterm memories. We had a crash much like this, similar sort of level just in the Fourth Quarter of 2018. Less than two years ago. It took less than six months to rebound and rehit those highs. We could see a rebound just as quickly were seeing the downturn. This could be something that takes fourfive months to really play out for the fears to be resolved and four to five months to rebound. I really want to remind investors unless youre willing to pivot so quickly, if you have overexposure to equities you needed to go into bonds which were seeing now this, is indiscriminate selling. Not like people saying oh, im selling airlines, im getting out of all equities, unless you really need to relal reallocate from equities into bonds, you can see stokes rebound. If youre not ready to get back in, dont have the once bitten, twice shy mentality to say in the markets, we still have a Strong Economy to help push us through this crisis. Charles, one truism about panics is there is us a recovery. Charles right. But also the other truism, it is hard to model when theyre over, right . Thats right. Charles in this, you know, talk about 2018, a lot of commentators comparing this to 2018, i think take either one of those, there were really serious structural issues back then, particularly of course 2008, that augerred for a longer term recovery process, more legitimate concern than what we have right now this is something that is very unique, not to panic part, jeff, you know what is causing the panic. Joe crandall was original thinker with a bunch of indicators in the 50s, an early 60s. One of his indicators when you see 1500 to 1700 new lows, youre near a panic low. We got there this morning. I would remind investors, a lot of this started mainly from the energy selloff. In general when Energy Prices tank, you see fallout from the energy sector, those companies are a very small part of our economy and low gas prices, low oil prices actually tend to help arrest panic t tends to be beneficial. Charles north dakota, other parts of this country, ah every trucking, every airline, amazon, every Delivery Company saying yea, everything is cheaper to operate. Everything is cheaper to operate off off oil. In general, lower Energy Prices actually tend to cabinet positive and i think that investors have clearly forgotten that today. Charles what is it about right now . Because, jeff, the point is there is no place to hide. Commodities would be safe havens. I saw gold stocks getting hit. All socalled coronavirus stocks. There is no place to hide right now. Have we triggered something that has, that has revealed a weakness in market . Some people stay over leveraging or credit issues. Is Something Else going on . Have we discovered something accidentally we should be paying attention to . When you get into a selling stampede were involved in, they usually last 17 toe 25 sessions with only one to three session countertrend bounces. I havent done the day count where we are in this one yet, there is no place to hide. Look in 2018, there was nowhere to hide accept cash in 2008. We have decent cash position, having raised cash in midjanuary. Charles speaking of 2008, Lloyd Blankfein who is trying to be the voice of reason today, for those who havent been in the market long enough, he was the ceo of goldman sachs, somewhat after controversial figure, but played a big role in the recovery of our markets back then, he put out a tweet there, fear can take markets lower, but expect quick recovery when Health Threat recedes. United states underlying economy strong, banks wellcapped, system not too leveraged. Unlike 08 well avoid systemic damage that could take years to work through, obviously not ignoring the tragic human toll. On friday the atlanta fed went to 3. 1 gdp estimates because of the strong jobs report. Were almost over with earnings season. Much better than expected bet. The momentum was undeniable. 730,000 people got a job in. Country last 90 days. That helps buffer uncertainty that is certain to come. Absolutely. Weve seen strong participation rates, weve seen wage growth. This will not erode in a one month, three month period. I do see, while the stock market was definitely overpriced when we came into this pointed out many times on the show. It was, and it is still on the expensive side. We could easily go back down to another 10 from here that would us back what it looked like in 2018. Charles hold on one second, erin, jeff, i will be right back. I want to check on oil prices. This plunge is remarkable, folks. On reports that saudi arabia slashing prices and increasing supply after talks with russia collapsed. Crude prices down 22 earlier today, the biggest loss since the launch of the gulf war back in 1991. Founder and editor of the schork report, steven schork. Thanks for joining us. Great to be here, charles. Charles great to have you. Undoubtedly one of the best to on this connecting the dots. That is what im having a hard time with this. Connecting the dots, oil goes down precipitously and Everything Else goes down. Why . Saudi arabia initiated a price war with the russians over the weekend by cutting their official selling price but lets keep in mind this price action has very little to do with saudi arabia per se. This is payback from russia. Charles, remember two weeks ago the Trump Administration slapped the trading arm of russias largest oil company, rosneft for its dealings with venezuela. The fallout from those sanctions are going to mean, russia, rosneft will lose market share for crude oil experts to asia, european and of course u. S. Buyers. At the same time the United States has been net exporter of oil, crude oil and product since october, 150,000barrels a day. In last weeks eia report, u. S. Crude Oil Production hit an alltime high of 13. 1 Million Barrels a die. Those new exports of u. S. Burgeoning market are going to take market share away from rosneft. So russias decision not to back an Oil Production cut with saudi arabia had less to do with saudi arabia and more to do as a response to these sanctions to its largest oil trading company. So this is absolute price war. Charles the rationale, you have to go to the last punic to find the rational. Are there any winners . No there is not. Might be a suggest scharre guy, consumer paying extremely low for price of energy this is a potempkin village this is not a good. Low oil prices do not drive economic growth. Economic growth drives Commodity Prices and what we did see coming into this was already decrease in Energy Demand because the industrial side of the u. S. Economy, the industrial side of the european economy, the industrial side of the asian economy have been in recession for at least the last three to six months. Weve already see that knock on to falling Energy Demand. Now you add in the coronavirus, you run the risk of that demand decay not stance firing into the consumer transpiring into the consumer level this is not a good thing for consumer markets. Charles is this some epiphany of supply you . Started saying we have a record amount of production. All the nations around the world, some offline coming online, arent there limits to the amount of supply no matter how great an economy is . There are limits to supply but were in a major pivot in the world oil markets because of course we have substitutes in the markets. This is not all oil driven market for transportation needs. Were talking about evs. Were in a great pivot. We have too much supply, not enough demand on this market. Fortunately we went bearish in our report, our january 24th report because we did start to see telltales of knockon of this overhang of supply greater than demand and heck, just last week 5. 6 Million Barrels at 40dollar strike put traded. Clearly the market was giving us a signal it is still oversupplied and clearly the decision by russia, reaction by saudi arabia, signals that were going to be looking at Lower Oil Prices for much longer time than most people can appreciate. Charles is it too early to try to figure out how long this lasts . At some point, im not sure how they do it but saudi arabia and russia probably have to figure out a way to come back to the table and turn this around . I think its, saudi arabia, russia, and i think it is the United States because i am a big believer that this is in reaction with these sanctions on rosneft. Those sanctions are going to have to be lifted by the United States to get russia to act this is more in the u. S. s court than it is in saudi arabias court. As far as longevity, that will be a geopolitical concern. As far as price reaction, models weve been running and weve been reporting we had the downside of 36 to 34 a barrel. Of course we overshot that, 27dollar low, peak to trump decline, day over day of 41 . We didnt see it to that extent but we have, retraced, were in the bottom range. So we can hold prices at these levels. Charles all right. Steven, thank you very, very much. Always appreciate it. Thank you, charles. Charles for more on plunging oil price i want to bring back erin and jeff. Jeff, listen, stephen is great, he tied in whole political aspect to this, even bringing in the u. S. Part. Who knows what is going on behind the scenes but certainly it comes back to the dynamic of supply and demand. Geopolitical aspects always trigger shocks. Normally an upside price shock that trigger recessions in this country. I never heard after downside supply shock in oil tricking recession. I absolutely agree with that. I see nothing on the that tells me people on your show telling me for three years were going new recession and telling me earnings will not come up to expectations and they have been dead wrong. I think theyre dead wrong here. I would comment that crude oil over time typically tracks its incremental cost to production. And the incremental cost to production is higher than 32 a barrel. Charles i mean he did bring up evs which i thought was intriguing. The idea well go to a world, so weird with the coronavirus feels like it fast forwarded us. Talking about worklife balance, people dont go into the office. This world where we do more things online. This world where we dont use as much energy. This is a world promised to us supposed to be amazing but were living it today and it dont feel so good one i think definitely there is opportunity for new technologies to take advantage of this fear and that might help Certain Companies but overall yeah, to jims point we saw a slowdown in industrial production. Because out of china we knew they were slowing down this sell off seems like massive overreaction. It is a price war. The drop in oil prices is overreaction. Reaction with the stock market is another overreaction. I would see, certainly reasons for some concerns, the world economically is never going to be perfect. There will always be areas of concern. Charles right. I think overall, were still very strong on. U. S. And i just see a lot of the selloff as being overreaction in fear, that changes how we have to behave. Charles jeff two, themes i had last week, one, retesting the march 28th low which we didnt do last week. We obviously did today. The notion that the individual investor was still too optimistic. In fact the American Association of individual investors saw bullishness climb eight Percentage Points in a single week. Are you in that camp, that the back of the average investor has to be completely shattered, their dreams an hopes about making money in the stock market have to be erased, they have to say no mas, throw in the towel, that is your buy signal . The, i go out, charles and do seminars for four or five, 600 individuals. I did one at the traders expo in brooklyn and the individual investors i see are not optimistic. Theyre not just cautious. Theyre scared to death and i would note that in the long run in Business School they teach you it is all about earnings but i can testimony you after 56 years of looking at markets and 50 years in this business, that in the short run, the stock market is fear, hope and greed only loosely connected to the Business Cycle because people dont follow the main tenet in ben grahams book, the intelligent investors, says the essence of Portfolio Management is the managing risk. People do not manage risk. Charles speaking of benjamin graham, i thought Warren Buffett had great letter, retained earnings. Great companies that will come back. I think we get over, we start to look at stock price, and share price, instead of looking at the idea, of the notion, erin we own a business. Do you think apple is an amazing business . Do you wish you owned it three thursdays ago at an alltime high . The answer is probably yes. I agree. We still see even within the markets today, mispricing of growth versus value stocks. Value stocks are Great Companies that deliver earnings year after year, very consistently. Though may not be able to deliver those incredible boom numbers like in amazon or netflix, lets say. So i think there is still a lot of value in the market, i think overall were still looking at 5 Earnings Growth for this year, even with the charles still looking at positive Earnings Growth for the year . Were still looking for positive so far even with all of wall streets most recent revisions were evenly looking at a potential contraction in the First Quarter and still positive Earnings Growth for rest of the year. Charles jeff . I absolutely agree with that. We did lower our earnings estimate from 177 to 173 because of whats going on but you know, we figure fair market multiple was 20, 21 times earnings given Interest Rate environment that gives you anywhere 3400 and 3600. Charles very bullish, compared to the rest of wall street right now . Bear in mind we put out a sell signal in midjanuary. Charles sure. So youre calling it almost minute to minute. By the same token you must see major rebound in things that are being postponed now . In other words the Second Quarter is the big question mark i think. I agree. Charles third and Fourth Quarter youre seeing some things postponed in the Second Quarter, people are picking back up later in the year . Absolutely the consumer in good shape. The economy, i was around you know, in restaurants here in new york city the past three or fourdays. People are estimate out spending money. I still cant get a reservation. Charles what . Did you tell them you know jeff . Come on now erin, jeff, thank you both very much. That was fantastic. We covered a lot. You were spot on. I appreciate it. Always a pleasure, charles. Charles dow and s p off 7 , so what are traders saying about this emotional roller coaster. Lets go to kristina partsinevelos. She is on the floor of the New York Stock Exchange. Kristina . Kristina were also session lows. Definitely the mood is now, much calmer than we were in this morning when you had the First Circuit breaker down 7 . Everybody was speaking really loudly, what was happening to their handhelds because they were offline for 15 minutes. That is to help liquidity. The next major number for the s p 500 to have another halt. That would be at 2585. We are far off the number at 2766. So there is still some time to go but overall seems like nobody is really jumping the gun and talking about another circuit halt. Were seeing a lot of volatility. That is exemplified by the vix, seen as fear index. Earlier this morning it hit 62. We havent seen it at that level since 2018, the financial crisis. You do have Movement Towards risk off, into gold for example. Gold hit a sevenyear high. Well bring that on the screen. 1762. 80. Seeing commentary about government bonds. The 10year treasury bounced 80 basis points in two hours is something people have not seen. We have another big story. Look at other news, mergers and acquisitions. Aeon, acquiring willis 30 billion in stock. It will be the largest, so far largest m a activity for this year alone. This new campus will be called aon headquartered in london. Large market cap. Share price for aon, down 17 . A lot of movement, odd to do it on a day where markets are down. Another story hit the wires, cvs, those watching, concerned about the spread of the virus, stocking up, cvs will wave Home Delivery fees for medications. Not for other products but just for the medication this is something they put out to help mitigate any concerns about people that may need to stock up in advance. Back to you. Charles kristina, thank you very, very much. Folks what youre looking at there, that is the grand princess making her way into the San Francisco bay. You can see there oakland, ktvu, 1400 crew, 2,000 passengers, 21 confirmed coronavirus cases. There will be extraordinary effort to get them off the ship and redeploy them into different parts of country depending where theyre coming from. Something, everyone, entire nation will be watching. Well keep an eye on it. Meanwhile despite beating coronavirus giving the equity market, the economy is juggernaut in january and february. The question how much strength will help us through the downturn . We like to bring in moodys managing director, chief marketing economist john lonski. Thanks for joining us. Thank you. Charles any other monday we would still be talking about that jobs report, 273,000. 730,000 people in this country got a job in the last 90 days. Wages are up. That was trifecta winner in jobs growth, average Hourly Earnings and the length of the work week. Well see a nice big increase by wages, salary income for the month of february. Weve had a rise by personal savings. This is not 2008. The household sector is not going down the toilet because of excessive debt, because of bad mortgages. I think that is going to play an Important Role at mitigating whatever type of downturn we incur. Charles so the big question mark, how much of an impact will this sort of social distancing go home, stay home, wont open our doors to peek out the window . How long does it last . I have another important question. I am disappointed with the reporting on people being hospitalized and people dying from this illness. I want to know how old are they on average . I want to know to have some idea what their preexisting conditions might be. Were they heavy smokers . Did they have any other extraordinary lifestyle characteristics . That is flying by us. My sense people at risk are the boomers. Boomers are older. Millenials, if theyre reasonably healthy charles some of those things will be answered postmore testimony. Youre absolutely right. I dont think we should show the World Health Organization death an mortality rates, they have countries like china, where there is heavy smoking. There is not a great medical apparatus. Iran heavy smokers, same thing. When it is all said and done well find out not only do we have the best medical system but probably physically better prepared for it. To that point, when i listen to believe it or not, like andrew cuomo of new york when he comes out he is saying hey, this is, he gives it to us straight until you start asking about other political stuff. He is trying his best. Jeff saut just talked about the fact he went to restaurants in new york and they were packed. I went to a supermarket yesterday, big supermarket, it wasrd early, it was packed, no one was panicking. There feels to be something of a disconnect as an economist how do i work that into your work . The idea people will become more afraid as there are reports of people being more afraid . We have to see when that materializes. Charles you cant take a guesstimate on Something Like that. One thing we do know the First Quarter will do fairly well. We have the gdp now estimate of faster than 3 growth. No, we have to have backtoback reductions by real gdp in order to satisfy the technical definition of a recession. We may not even get there. We may only have contraction for the Second Quarter and Third Quarter it is back to the races. Depends how quickly we get this under control. Whether or not we have a fuller realization who is at greatest risk from coronavirus. Who doesnt have that. Another interesting fact, never before in my life have i seen treasury yields collapse in the way they did in anticipation of a recession. Like the recession is almost here. Once things clear up, my goodness the super low yields will trigger upturn in home sales and refinances by businesses an households that will help the economy. Charles so we have to get, feels like, to your point, we have two strong months of march, obviously a wild card, will be lower, next three months or six months being down it is hard to believe that is going to happen . If coronavirus keeps on spreading, if we find out fatalities are not only affecting older population, but those in ill health but young, healthy people. Charles were banking on the hope that this summer also plays a role, warmer weather plays a role like most virus. That is usually the case. Charles a pleasure, john, like always. What measures are being discussed in washington to help us get through the coronavirus economic fallout . Edward lawrence live on capitol hill with the story. Reporter charles, congressional source telling me the house ways and Means Committee is having discussions with other committees and Speakers Office which way to go. Theyre waiting for administration and the white house what they would like to see. Out of senator Chuck Grassleys office, theyre working on targeted tax relief as possible relief for specific industries that might be affected by the coronavirus. House Speaker Nancy Pelosi released her list that she says needs to be in any stimulus package that comes out of this building that list includes this includes paid sick leave, he specially those affected by quarantines. Enhanced unemployment insurance. Clear protection for health care workers, protective gear and noncovered health gear and price protections on medical and nonmedical essentials. Pelosi says the house will take its time to make sure they get this package right. We can pass them in the house. The question, will the senate take up the legislation that relates to the well being of the americas families and workers, whether its food for the children in school or affordability. No copays, no deductible on the testing . Reporter both democrats and republicans would like to do something to help the economy. Well have to see how much politics gets infused into this process. You know the Federal Reserve chairman jay powell last month said there might be fiscal policy help that is needed along with Monetary Policy help because theyre so close to the lower bound. We know last week the Monetary Policy side they cut 50 basis points. They have about four cuts left if theyre in the moderate range on those cuts. Well see exactly what kind of stimulus comes out of this building here, when it comes out and whats in it, charles . Charles edward, thank you very much. Well be watching for that. What effects would any Government Intervention have on the market . For that i like to bring in capital wave strategist, shah gilani. Shah, the markets were disappointed because you had a conference with the g7 ministers and central bankers. The key word was coordinated, right . We thought there would be something where all these nations worked together in unity and instead it is sort of been a hodgepodge of action. Still waiting on ecb, bank ever england. How important whether large institutions, Central Banks or federal governments particularly america to intervene . I think it is important but it may be a little bit too late, charles. As we saw last week when the fed cut rates 50 basis points in terms of fed funds, the market took that as a negative. There was something the fed was seeing that the markets didnt like, therefore they sold off. I would like ecb coordinated, Central Banks coordinate ad little more. I dont know Central Banks cutting, Interest Rates already low, being artificially pumped lower will stimulate the economy when demand destruction is so widespread globally and supply chains are so impacted i dont know that is going to be a ready fix to this problem. Charles what about fault lines, potential fault lines in the economy . Credit markets on one side, one of the reasons i think this oil selloff is really critical is because, in this country you have a lot of smaller players, they overbuilt. They leveraged themselves. They took out some, you know, some pretty highrisk debt to do it. Now folks are worried not only will they pay the price but so will those markets . Yes. I think thats the first line investors are watching because of the oil turn around here this is a dramatic turn around in the price of oil. Most leveraged frackers, most are leveraged to the hilt they have been able to refinance lower Interest Rates and roll over debt, price of oil stablized they were pumping more oil. That is well and good and they increased production and exploration. Pipeline companies started to expand. That is all well and good as long as price of oil is steady or better yet going up. Now with this dramatic price in price of oil these companies will fall off the cliff and not able to make debt service. That is the first line the market is looking at, will there be cracks in the oil patch, will Leveraged Companies go bankrupt and spill over effect going into banks and people that own their debt. Charles people connecting dots. The market getting ahead of them did we get oil closing yet . Hold on one second, shah. Oil is closing. It is starting to settle here, down nearly 25 . I want to bring in fox business contributor phil flynn who happens to be live at cme. Youve been around for a long time. What do you make of all this . You know, i think, that russia and saudi arabia let the Global Markets down, right . I think the story today is the inability of russia and saudi to put their differences aside for the good of the Global Economy. Weve been hearing from opec the last couple years that their job was to create a stable oil market. It wasnt about greed. It wasnt about themselves. It was for the good of the Global Economy. You can throw that out the window today, charles because they put their best interests ahead of the Global Economy and were seeing ramifications from that. We are getting reports right now that the white house is actually looking at this and a couple things they are going to do to respond. Potentially give help to u. S. Energy producers. Theyre thinking about helping producers, some shale producers to get through this and theyre also going after cheaters that try to avoid sanctions. There is sanctions on rosneft right now. They want to make sure some of those ships that have those transponders that they turn off to hide where the oil is coming from, theyre sending out warnings they will crack down on that. So i think the Trump Administration is very upset with the opec plus right now. They think that they handled this very poorly and i dont think weve heard the end of the story yet. Charles phil flynn, thank you very much. Appreciate it. Thank you. Charles want to go back, bring shah gilani back in. We were talking about the oil market and the situation there. How would you feel about some government help with some shale producers . Unfortunately some will require it. The domestic industry is so strong, such an important critical industry to the u. S. , im not generally for bailouts. This industry may need some help and not against government helping out the shale and frackers this is our Energy Independence is one of the most critical things on this administration list. Charles broadening out the conversation, shah, overall markets is something standing out to you . Is it too early to discern any trend or any sort of points that you would be become more interested in maybe starting to buy at this, during the selloff . In the big picture i will say this, charles, i have a long buy list. If we continue down and continue down in the kind of fashion weve seen today, were going to see a generational buying point at some point. I dont know when it is going to be. I hope we dont see that destruction in the market. I would like to see the market taper off, find support somewhere. It will probably be a little bit lower. There are already a lot of stocks i want to own. Just a question of when. The coronavirus, until we see the infection rate turn around, that trend in the other direction, the direction we want to be going, that is actually nowhere in sight, the market will continue to be volatile that gives me pause for a lot of worry. Charles shah as the tests get distributed, million now, four million later, obviously wall street has got to be ready with the knowledge confirmed cases will leap. Doesnt mean more people getting faster rate. Well discover folks who didnt know they had it will now be confirmed. Is there a point where wall street starts to take the news, digest it . Same headlines might knock it down today wont knock it down a week from now . Yes there is a point. Were not near it. I think market looks what happens. They will look at all negatives right now, try to price them as quickly as we can. Doesnt mean we wont see, another guest on stuart, socalled them rip your face of rallies. Well see them the way markets driven mechanically by computers. Well see bounce back rallies of significance but i dont think the destruction worked its way through the economy. Markets worry what happens to company earnings, if demand destruction continues, supply chains continue to be interrupted, if china doesnt get back on line really soon we have problems ahead of us. That means in my opinion we have a good bit further toe go on the downside. Charles im intrigued by your list. Im making the list, checking it twice, refining it, with different inputs. What are some things youre looking for . What would make a company intriguing to you as we come out of this . First and foremost i would love to look for, i have a short list right now going to be growing im sure around some will include i will companies with large dividends where the dividend are secure and there is a chance for them not to be cut. Some of these dividends and some of the reit dividend im looking at, were above 7 on some companies. If those dividends are sustainable you will get appreciation over the stocks next year to two, or three at most, you will be paid to hold those stocks. That is my first line. The second line will be the more beaten up stocks, especially the tech darlings that have been hit pretty hard. I want to get back in. I think those will be the first to rebound. Im not sure of apple being on the list because of prompt related to china. Amazon, microsoft, facebook will have a good bounce. Tech stocks will probably be the first line for me. Energy stocks will be right there and at some Point Airlines and cruise lines. Really beaten up sectors. Charles swashbuckler, shah gilani. Cant wait for you to go after those. Cruise lines are down 50, 60 for the year. Only march. Thanks a lot. Always appreciate your wisdom. Thanks a lot. Meanwhile the Trump Administration says they have the tools to keep the economy going strong in the wake of this outbreak. The president meeting with his Economic Team later today to weigh possible action to stem the fallout from the coronavirus. Sources tell us u. S. Wall street executives have been invited to meet with the president on wednesday. Blake burman is live at the white house with more. Blake. Reporter hi, there, charles, a couple headlines there, what we expect over the next 48 hours at the white house. Let me try to walk you through it. The wall street executives, were expecting them to be here at the white house on wednesday. Invitations are going out as we speak. I am told so it is still unclear exactly who might be here, who wont be here. In any event anticipating wall street executives and the president wednesday at the white house. More near term there will be a meeting in the oval office with the president shortly within the next few hours. President trump is aboard air force one on his way back to florida from the white house. Im told shortly after he lands, the president will meet with the Vice President , treasury secretary steve mnuchin, National Economic Council Chair larry kudlow and likely others as options for potential economic stimulus will be put before the president. One option include paid leave should you miss work due to the coronavirus. Another one potentially deferring tax payments for those in travel industry, airliners and cruise liners. Senior Administration Firm told me earlier this morning they werent sure what options their department would be pushing for. What remains to be seen, charles, whether or not the president will act on anything put before him. Some of them, none at all. What actions he might take and if he does take actions when exactly will he go forward with them. The white house stressing any relief will have to meet the three ts, targeted, timely, temporary. Those are the words weve been hearing for a few days. Relief could be im told, given to individuals, businesses or to industries. As we work our way through here, charles, on this monday afternoon, big meeting with the president a few hours from now with the Vice President and members of his Economic Team. Wednesday wall street executives as well though i would remind you it is not even 3 00 on monday. You saw how last week played out with all of those meetings throughout the week involving the president and the Vice President. Well see how this shapes up here as we kick off our coverage. Charles blake, thank you very much, appreciate it. All this comes as President Trumps Approval Rating on handling of the coronavirus begun to sink pretty fast. For more of the political fallout i want to bring in rick ungar and david web 7th and 9th, net Approval Rating 40 points. March fifth, it was 2 points. Cdc had net Approval Rating of 76 points. That is down to 56 points. Are you sensing there could be serious political fall out on this. I was booking my flight. I was busy going into the segment. I sat here and booked a flight. Charles were there any seats . Quite a few. The flight was full. Ive flown four times past five days, five offer six days, taken trains and im still here. If a poll cure as virus i will worry about a poll. Here is the difference. I bonn in talked to the administration what is going on down there, what theyre doing, who is in charge, who is really doing the work. I looked at changes they made, scientists immune noll gifts, bringing in of state and University Labs into the picture, test kits, 3m ramping up mass manufacturing, talking about firstresponders those have to do with this. The things being put in place are dealing with this as it plays out and fear in the polling game is exactly that. Politics was played with initially what was a 2 1 2 Million Dollar request from the white house to make it a 8. 3 billion Christmas Tree giveaway was another part of the problem. That is d. C. And that is polling. But really it is scientists. It is pharma. It is the labs. The people involved in this. It is mitigating issues, the travel ban that the president first instituted partially when it comes to china mitigateddown line effects. No one knows but the world will go on. This will be over. It will be gone. Then the markets and economy will reset. It should reset based on real economic fundamentals. Not a bunch of executives that may want to get their bailouts. Charles certainly for rick, democrats on friday, when that 273,000 number came out, then we found out there were such massive revisions, 730,000 americans got jobs in the last 90 days and no one knew. It didnt make the news, right . Barely makes the news. Made the news on my show. Charles if you toggled around, it was coronavirus in red letters. The problem was, lets hope that number continues. Im certainly not rooting against good employment numbers. Charles do you think anyone in your party is . Yeah, i think a lot of people are. Thereof this is the political game that getting nobody anywhere. I was thrilled to see those numbers. I wish those numbers, they end around the 12th of february i think. Most of the coronavirus issues came of up that. I would love nothing more, a few things i would love. Numbers after that when we get the next numbers. You know what else i would love . I would love for President Trump to come out of this a hero. You know what that means . It means people didnt die if he comes out this looking good. That is heck of a lot more important to me charles how much is in his control . He put out a tweet today. Last year 37,000 americans died from the common flu. It averages 27 toe 70,000 per year. Economy goes on. At this moment there are 546 confirmed cases of coronavirus with 22 deaths. Think about that. This is a tweet. Essentially what he is saying he should be deeply troubled by the tweet. Why . Why . Charles answer the question. Not do this to our audience. Let me answer t question. Oh, my gosh. There is context that needs to be in this. The virus was going to progress regardless of politics. Not a republican or democrat virus. But it is going to act the way it does in transmission and retransmission, infection, that happens. Were not going to stop that. But scoping the size of population, this is not something that even matches what the flu does. Those are the numbers. How can you possibly know that at this stage . There was, excuse me. Im not trying to predict the future here but youre playing there were only 500 cases. It got to be a whole lot more. What a silly point to make. No. Here is what ricks argument fails. How do two countries operate . China and chicom religion game can shut down wuhan. You cant know that . Ier. Said the outcome if you let me finish answer. Ridiculous. Reality this idea is going to necessarily become worse is no more true than its not. What we do, and were able to do because of our technology, our ability to work to mitigate charles david, what about messaging . Do you think the messaging from the administration is on point to where the average american should say, okay, everything is going the right way . Im fine with it. Ill tell you why im fine with it. Because we, you, me, rick, everyone out there has a responsibility to Pay Attention and stay out of hyperbole. They can only send out so much. You have to Pay Attention to reality. Unfortunately you start out with the politics of this those who wish for something to go against . Im with rick. I want trump, the administration and country to be successful. Charles how will you measure whether President Trump is hero or not . Depending how many people die from the disease. Charles people will die from it. Of course they will. By the way i have said this every day on my radio program. This is not President Trumps fault. That we have a coronavirus. This is the fault after bat somewhere in china but ill tell you what charles some other endangered species, who knows. But what is a problem when you dont level with the American People. What way is he not leveling with American People . Im about to tell you. The president told us a couple days ago at the cdc turns out he is a medical savant. Who knew he was so skilled at this. Days before that when we had 14 cases known in this country he told us it was going to zero . Did it go to zero . No. It was never going to. You have to level with the American People. They are leveling. What you have to do, World Health Organization develop as test one week after chinese put out blueprint charles that test was flawed. Im sorry. Youre wrong. Yes it was. Yes it was. No, it wasnt. Excuse me, no. Im going to misrepresenting facts there was nothing wrong. The flaw was in the cdc test. W. H. O. Made the test aweek after they had the every country in the world still using. One country, one country rejected it. Charles let me ask it ours. Let me ask you a question, so far though, do you feel, weve had this now in this country for how many weeks, four or five weeks . Probably more six or eight. We dont know the full width. Because we dont have testing. Well get the testing. The testing is going out. One thing we will find out the death rate is lot less in this country than anywhere else in the world. I agree. I dont know about that. Charles i think this will be less than anywhere else. What do you base that on . Charles i base it on our medical system. Our sanitary health. We dont smoke as many cigarettes. We dont Smoke Cigarettes like chinese and iranians do. Italians do. Italians, italians have one of the best medical systems in the world. Charles i think we have the best. I hope youre right. Charles let me ask you about politics real quick then. We haventad a chance to talk about that, are the democrats, seemed like last debate there was frustration they didnt get a chance to pounce on coronavirus. Do they have to walk a fine line here . Ive been watching Governor Cuomo in new york. I think he does amazing job until he starts talking about tests, fingerpointing aspect. When owe talks about calm, rational response and leadership. What is hard, they have to walk a line, i ask myself 10 to 12 times a day as i prepare for shows im doing, am i politicizing this . Because i dont want to. The problem it is hard to stay away from it when you know that it is government, im not laying this at trumps feet, it is government who has to take lead solving these problems. No it is not this is part of the problem. Rick is misinformed. It is not government taking the lead. Government has a role here. That is why the Vice President is the lead but labs, it is the experts, the biologists. Let me finish. Were way over. Get their orders from, because i cant let get away from this. This is false information. Charles bottom line there is responsibility to the average person out there to wash their hands, cover your mouth. One example on the government screwing with this, all right . In westchester county, they go against cuomo goes against the officials at the School Systems and orders a shutdown after the superintendent says no. This is a problem. Politics is being played with this. Fear is being played with this. And politics and fear together are more dangerous than the virus. Charles rick, david, thank you both very much. Get back to the markets, s p, 500,down 7 . Claman countdown liz claman at the New York Stock Exchange. Liz, we know till with be a final, another wild perhaps, even wilder than normal final hour of trading. What are you embracing for . Im bracing for the transports. Have to look at the transport. Theyre down 10 . Not getting a lot of love in the press. They encompass anything, choochoos, airlines, fedexes, upss of the world. Theyre getting hit to on a outsized level. Dow is down 7. 9 . Russell, small caps, theyre down nine plus percent. Well be watching these levels. Right now were also keeping an eye on how erred early things are. Orderly things are. I would use word very on New York Stock Exchange. As treasury bond yields fall, were off the lows of the session believe it or not, simply. 5 . Jay varner, ceo of quicken loans, see how many phone calls his people look just last friday alone to refinance. Im hearing anecdotal evidence, bank of america, people call, were not taking new orders to refinance loans because we already have a big backlog. Remember, it was last week, that the 30year fixed mortgage was at 3. 29 . We had barry habib on, he predicted the 10year, which the 30 year tracks the 10year, many ways, shape and form, would fall 2. 5 . Boy was he right. Were bringing back barry habib, the next waystation for the 10year. Jay varner, ceo of quicken loans what is issue of refinancings . Will banks step offering chances to people to lock in lower rates because they are overwhelmed and they have to make sure people can make loans and pay their mortgages . Dow not yet at session lows. Very closes. Session low before was 2096. Were down at 2023. Entire come commercial free hour just like you charles, epicenter of trading on the globe, 3 00 p. M. Eastern, final hour of the trade. Traders tell me watch out for the last 29 minutes to see if buyers come in. Charles i will let you know i think well see very late buying trying to get ahead of major announcements from the administration or overseas. Liz, well be watching. Folks, claman countdown, top of the hour. Coronavirus cases jumping 35 per day, putting new york ahead of state of washington. New york governor andree couple mow announcing 39 new cases of coronavirus most of cases in new york still center around one area that is westchester county. But today among those new people testing positive for the virus is the Port Authority director, rick cotton. Governor cuomo announcing today that the director is handling airports who is handling airports is under quarantine. The recent spike means new york surpasses washington for highest number of cases. New york is under a state of emergency and containment plans are in place after lawmakers called for test kits starting today. Test something available at Northwell Laboratory in lake sussex, new york. The state will give away 100,000 gallons much Hand Sanitizer for areas most affected. Cuomo telling the public to avoid hysteria because real actions are taken. They will give guidance to any schools testing positive. Already major universities are coming up with their own plans. Universities like columbia and hofstra closing this week. In new jersey, princeton and fordham turning to online classes, penn state abroad classes in italy wrapping up. Many businesses are sending employees home too. New york governor announcing if workers need to stay home they should get paid too. Charles. Charles alex, thank you very much. Top Health Official Anthony Fauci is predicting that social distancing, folks this word, term you hear a lot will become more prominent as the coronavirus spread. Will that calm the outbreak or more action needed. I want to bring in dr. Connell in. Thank you. Charles there was article over a big Research Report on the initial virus saying there was more aggressive version that faded away in january as they locked down that entire country. Weve seen aggressive testing and measures in south korea. Were getting lower and lower daily numbers there. Now italy is quarantining the lombardy region, 17 million people. Is this something americans should really seriously consider . We have hotbeds of this, instead of being much more aggressive with locking down these areas, these counties for one or two weeks . Okay. Yeah, okay, that is a great question. You mentioned a number of really interesting points there. I want to make a quick point about the virus mutating, charles, youre referring to. I saw a couple articles over the weekend, virus mutations what that may mean. Let me say viruses that is what they do, they mutate. They will change, they will change. It doesnt necessarily mean the virus is going to become more lethal, more deadly, more problematic. In the scope of that i think the real issue is, not so much whether the virus mutated or it is, i think we can expect it will, what were doing on the outside. Which brings me to your second point, are we doing enough in terms of social distancing and isolation, et cetera. The things ever quarantining things of that nature the decision has to be made and is made at the state and local level in association with the federal authorities. Of course whether we decide to quarantine or sort of lock down a place or a region really depends what is going on there. It will depend on number of factors. May that be appropriate in some areas . It is possible, yes. Is that appropriate for everywhere . No it is not at this point. In terms of social distancing to make a point about that, i do think that social distancing may become more and more and more important as we come in the days and weeks especially for those who have croon nick underlying charles what about folks who dont meet that criteria, healthy 28yearold sitting at home ordering netflix because theyre afraid to go outside . Right. Right. So those who are just sitting around ordering netflix and young and healthy, remember that the risk for the majority of people in this country still is low, okay, so for that person who us healthy, thats not sort of in an area thats got a lot of coronavirus, that doesnt have any underlying medical conditions, theyre not older, et cetera, et cetera, the risk is still generally considered to be low. So the idea is we still want people to go about their daily lives. Thats where this is sort of almost like a tiered approach. Every region, every environment, every person may have a different level of risk depending on who they are and where they are and whats going on in their region. Charles doctor, thank you very much. Always appreciate it. Thank you. Charles what can we expect in the final hour of trading . Want to bring in alicia levine. Thanks for joining us. So friday was an intriguing session because i thought what we got today, we were going to get on friday. It felt like whos going to own the stock market over the weekend. I thought we could easily have been off 15 dow points but there was a rally in the last few minutes of trading. Not sure what the buyers were looking for. To me, if you are sitting on cash eager to get ahead of the crowd, certainly you might be looking for news from the Administration Later on this afternoon, some news from overseas, maybe overnight. That makes the last hour of trade very intriguing. You want to see some sort of stabilization here because we have fallen through a bunch of Technical Levels in todays trading which suggests were not done yet. Normally you do not want to buy a market when you are going to the lows of the day. That could possibly happen. What would make investors comfortable and work on the sentiment that theres some sort of fiscal policy, coordinated fiscal policy in the developed countries to try to address this thing because right now, theres a feeling that Monetary Policy alone cant quite do it. Because youre not going to help stabilize businesses and thats the problem right now. Charles so we are hearing from the Trump Administration and looking at some things that would be the three ts, targeted, timely and temporary, maybe paid leave, deferring taxes from the travel industry, airlines and cruise ships, maybe something to help small businesses. Is that going to do it . I think the administrations walking this line where they want to be fiscally conservative and responsible, by the same token they want to address the needs of main street. Its a great question. Because you cant just throw money at people if everybody is stuck at home. So the more that localities try to contain this, the less the money is actually going to help because youre home, youre not spending it either. Theres a real tension between containment of this and letting the economy move on. Ultimately what should happen is support for small and medium sized businesses which are really at risk here for having a disruption in their revenue stream, and if theres any kind of debt or leverage at all, thats where there could be a problem. Thats really where Administration Action could be helpful both on the regulatory side and on the fiscal side. Charles as these test kits go out, we can expect perhaps an exponential jump in the number of confirmed cases, how do you think the street will handle that . I think we are expecting it. I think its baked in that there are many thousands more cases out there that we charles because when china changed their modology that one day and went to like 15 in a day, it knocked the market down. What i noticed after that, the market became accustomed to what was happening there. Speaking of china, february 3rd, the market reopened, their market hit a low that day and has gone up almost ever since. Thats a great point. The Chinese Market recovered way before the number of cases peaked, new cases peaked. Thats an interesting analogy for here, because the question is does the market turn around way before we peak in the number of new cases. Charles generally our markets do move well before the news is official. Thats right. Thats right. So look, if you are pricing in a vshaped recovery we get a hit the Second Quarter, first half of the year, but then theres a recovery in the second half of the year, the markets going to move well before then. However, i suspect we are going lower first. We will retest the low, have some shooting up. Charles in other words, it will still be a wild ride. When we hit that bottom we could get a sharp bounce. Absolutely. It will be ferocious on the way up as well. Charles we hand it over to liz claman. Liz charles, if before this final hour the question was have we seen peak uncertainty, traders i am speaking to on the floor of the New York Stock Exchange as we head into this final hour are saying no, for a couple of reasons. We will get to that in just a minute. On this historic day, countdown is going to go completely commercialfree for the entire hour because the news flow is extremely fluid, as you know if you have been watching fox business all day, and it has been since the very Early Morning hours. That is when, we can show it to you here, the market hit daily losses never before seen. Right now, all three indices are looking at the biggest point losses on record. You can see the s p is down
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