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tv   Fast Money  CNBC  February 28, 2020 5:00pm-5:30pm EST

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if nobody coined it. i'm coining to it bungee jump market free fall down snap back what a violent move, guys i don't know what people are saying down there. and i know up is better than down for most viewers. but i wonder if anybody looks and says well we added 615 points in 15 minutes up up or down up or down that's bizarre move. >> high volume, high volatility and brian out of time here on "closing bell. so take it away. >> thank you guys. everybody get adult beverage earned it this we can. sarah and wifl thank you of course coverage continues of the monument alsell off all week long today no exception welcome to traders tonight seem teerm steve grasso dan nathan and guy adami. well tonight on fast, it's one for the history books. wall street wrapping up the single worst week for the market since really the depths of the financial crisis in 2008 all 11 s&p 500 sectors falling
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into correction. meaning they're more than 10% down from the highs. selling has been hard, fast and really until late today a bit indiscriminate hard to believe that just last wednesday we were talking on this very show about all-time highs. since then, the broader market down 13% 18 s&p 500 stocks lost more than 20% this week. all told, the s&p 500 wiped out nearly four trillion dlarps in market value over the past ten sessions that's the budget of the united states of america. so, guy adami heading to the weekend, i'm pulling a fast one on you "fast money" one on you you. >> fire away. >> the big violent move up into the day you know the chatter i'm not saying anything out of school maybe the fed steps in over the weekend and does something do you think we see something from jay powell and company this
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weekend your buddies. >> a consolidated global central bank thing which -- the answer is yes why they think that will be effective in this is jond my scope. i'm not an economist it's more madness on top of the madness they've portrayed the last few years but the answer is yes. i think the good news in terms of levels -- i'm sure steve will speak to this. the 2950 levelish where we closed, back to the fall of 2018 that's where we topped out before we cratered in december that's where we re-tested in the spring and sold off again. the fact we traded down and closed there is encouraging. people will take solace a lot of the stocks rallied some in the green. that's a good thing. i'm telling you something. mike said something interesting at the end of the show i would push back on although the stock market is clearly cheaper that doesn't mean that stocks are keeper. as a matter of fact, despite the fact that we're down 13% off the all-time high, given what's going on in the world, you can
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make an argument that stocks are not only as expensive as they were a week or so ago they might be more expensive. different conversation to something to keep in mind. >> a fantastic point tim i don't want to put words in your mouth my friend how can we value a market on a pe basis when we have no idea. companies have said, we don't know the earnings you don't know the did he nominator hard to get valuation. >> we don't value the companies on two week or two-month basis we are look forward. i recognize q2 is going to be significantly altered goldman said yesterday earnings cut to zero you name it. i don't think that's the dynamic. i think this was about positioning, about markets that had gone 19% from october 3r7d 50/502009 based upon not a lot of great fundamental news, walking into the dynamic where positioning was so off sides and this was the catalyst not to
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oversimple fie i think markets will continue to grapple with the global economy. i think investors can look at stocks i think it's a great time for people at home to find companies that you actually wanting to own and some companies that i don't totally love but think about domestic company and domestic business facebook has and where it trades -- trading 17, 18 times. think about google trading about 17, 18 times with significant balance sheet and cash in a new ceo that might change that look, the good news here is that people were look forgive a shakeout in markets. you've gotten it people were looking for yesterday we closed on the lows. today on the highs and i think that at least in the context of people understanding that markets don't move one direction, you got a chance to get in. >> we should note steve grasso, the nasdaq 100 ended higher. the nasdaq 100 finished up but i'm looking at the chart and made a grim as, the s&p 500 where is support. >> lets talk about we talked
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about the 285 a level. we bounced down to the decimal today. but think about something else the fed came out with the one-liner. two-liner whatever it was it rallied the market and sold off again. what did we have into the close? a pension fund rebalance 30 billion into equities doesn't have to be done today. but that's why you had that rip up i wouldn't read -- >> that's not a rip. >> not necessarily a fundamentally good thing we shouldn't take solace in that if it's a couple much giant pension funds buying >> they don't have td it it's a misconception they have to do it in one day they have days weeks to buy in. >> the grasso message apparently is don't focused on the 600-point rally as a panacea for the rest of the market. >> absolutely not. we have to look how we faded after powell today that was more telling. i want to see sunday night see
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if there is a coordinated effort and recalibrate monday. >> i'll mention this everyone has the list, the stocks they missed i think it's important to remember you think about the last year or so some of the moves we had were so extreme some of the moves in the last couple months, so extreme. biggest market cap companies microsoft trading at 160 at the end of january 190 within a few weeks all the way back to 152 this morning, apple the same thing 260 to 320. they went on the parabolic moves and corrected all that azmodan 1,900 in late january to 2,200 now at 1850. bring up the names because we know those those are the biggest market cap companies in the world equaling about $5 trillion about a week 1/2 ago. i'll mention this you think about the earnings we're talking about you can't quantify tp two of the companies taking off earning guidance sometimes people it takes time to work things out when you
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don't have certainty i'll go back to a couple of periods where we had major corrections. we have crashes in the stock market, 2000 to 2002, 2007 to the worked you can't go in and say we're going of the reversal those are the mistakes that could put you behind for years to come. >> it does keep the shorts a little bit on their heels when you hear powell come out we have no idea about the coordinated effort on sunday. >> back to '08. >> i agree with you, because i -- that's not what's going to save the market for any long period of time if a headline comes occupant that says there is a real vaccine a and we are making headwayen and then the market rips up. >> think about 2008 during the financial crisis we had every sunday night there was a journal headline or cnbc breaking story about a coordinated central bank effort we get the short squeeze, get the rate cut and fail and make
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new lows this happened for a year. >> but i think you're talking about 2002, 2008 i don't disagree those were recessions. i don't think -- i think there is a healthy doobt right now i think we have seen gdp slashed around the world arguably china contracts in the first quarter, et cetera i'm not sure we're in a global recessions >> they were recessions in hindsight we do not know then there were recessions. we didn't know then the central bank. >> looking in hindsight at the market that didn't move back because the market had to deal with that dynamic. but in fact those were recessions that's why the market didn't do it i don't know we're going into recession here i think that again this gets back to positioning. and what tour talking about steve talks about are technical things i won be surprised if the government wasn't in there the plunge protection team going in there. >> no i'm laughing >> there is execution. >> i'm laughing because people on the twitter are saying the
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thing today. >> to be clear also in coming out of the 2008-2009 crisis, the fed really identified two goals. 10 and 10. to get -- it was to get the dow above 10,000, unemployment below 10% and they do target the market there is no question the fed is talking about the market every day. >> okay two ways to look at it if the fed actually -- the government comes in and buys stocks that's one thing. somebody on cnbc this morning or last nightmber who -- i apologize said we need a vaccine not a rate cut american airlines down 30% why because people believe you don't want in the tight steel tube or aluminum tube with 350 people you don't know sneezing on the back of your head. >> right. >> what's a rate cut going to do about making people afraid to get on the plane. >> money can be as cheap as you want but if people are scared to go out it doesn't matter. but the good point is this i was
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traveling today. i was in fundamental laurelled airport, packed. plane filled with people nobody on the plane i saw had a maverick on. landing in newark, new jersey, the line through security was packed people didn't have masks right now seems like business as usual. the concern clearly is if something were to happen here and people stopped spending money, 73% of our economy is driven by people wanting to spend money. people could get scared. >> i'll let you finish but that could be pent up to a certain period of time where -- i don't necessarily think you're getting the same bang. if you take a vacation, put this one off, you probably aren't going to take two in six months. but there is a case to be made there is a technical recession and a lot of the costs and things that you buy you will eventually buy once you come outdoors. >> dan, tell me -- i think -- what you might be saying is that the markets -- what it's doing now is this was a catalyst to
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respond to what were fundamentals that didn't make sense before is that fair. >> lab but also on the heels of the mid-cycle adjustment last year with three rate cuts my point is the economy already fragile. we have the black swan, make no mistake that's what this is. i'm saying the likelihood of recession that is gone up dramatically we spent all summer when we had the treasury inversion talking about in 2019 that every recession in the post war period was presided that inversion and here we are six months after that and having it again almost. >> just one quick point. because i dwre with that but, dan, back to what's gone over or the last week the extreme moves bogey is a great chafrm this is a battleground stock before in dynamic we were concerned about company specific safety issues you know it i don't need to get into it bogey sold off more on the corn oifr down to 275 it we want down more
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than when it had major safety issues their business doesn't change because of the coronavirus that's an opportunity same with delta. >> follow up on that point you mentioned delta i was asking about und because guy was on the united flight we know about aegis site they had fights in hong kong and the planesy empty then too i was on one united is down 20% this week if you believe that united business falls off from here dramatically, or et cetera not american airlines, the same way. are we willing to bet things slow down that much. >> that he they cancelled flight routes if you want to look at the positive sides these are airlines acting with discipline and capacity rather than having planes fly or sit around with three people on them they are running business differently but you can't tell meal delta which traded downed to 45 which has the best balance
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sheet of the airlines. is going out of business there is airline stress. >> i want to bring up one stock. bring up the ticker for tell tp it's a big company lng producer. they are going to be nef a huge project underway but not exporting yet. stock fell 51% today to desks saying basically the market suggestion the long-term china contracts may not happen point is steve grasso, the market sold off that stock ostensibly onning in because they believed the project may not happen is that a rational market behavior. >> it's not rational to tim's point when you see boeing sell off more on corona than the max jet it's because they can't acquaint pie are fie. process max jet can you quantify. >> we have 37 planes and it's blah-blah. >> there is some way to quantify or you could wrong.
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>> united don't know they told us a couple daying ago. >> but when you look at corona, we have no clue how many thousands processor millions of people are going to get it or not. >> or not. >> or not get it what people do is rush for the exit. >> that's what i'm asking. is the market -- >> this is not rational. >> everybody is tired and grumpy. >> real quick is it a rational thing -- was it rational i'm happy as can be it's friday a rangers play tonight was it rational the weekend when apple came out and med comments. stock went down five or $6 off the all-time high on monday. by tuesday another all-time high was that rational. >> a more direct. >> short answer is no that's not rational. >> more direct question. >> more direct question. >> thank you. >> did american airlines deserve to fall 30% this week. >> we don't know >> how can you know. >> what do you say price is. >> truth i know that people. >> in the industry american airlines were bankrupt divides
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in the last 30 years maybe it did i'm just saying -- just. >> the entire market act rationally to you this week. >> double triple volumes, qq doing triple its volume. >> listen dude i'll tell you for the last couple months we've been talking about why is the kbchlt lu straight up why that is tesla gone up 500%? i could go on and on about the i had on theic stuff going the other way. we have one week the market goes down 14% in a straight line and the cheer leaders coming out cheer leaders root on the way down they root all the way down that's not particularly useful what i'm saying. >> same thing on the shortside too people calling for the market to sell off since 666 in s&p. and here what. >> turn the tv off get off the twitter a little bit go to work. what saying. >> don'to turn the tv off later. >> it's like what you are doing you might have a broker hedge
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fund manager or something people you pay to do this. >> nobody cares but i a did a twitter pole. >> 75% of my poll 1,000 people said no they did not sell stocks somebody sold stocks i i guess it was the allgo jim simons can buy a big are yacht this week. carter worth supposed to be on five minutes ago we apologize, you're the most patient man in history talk to us about where it's going. >> it can be bearish bullish lets run through stats and look at charts what we know the third worst january february performance on record. you can see the dates interestingly. they are a bit different january, february 09 was terrible and downtown in marni a bit mores. >> a disaster year no analog ever but neat are the most ep ib ones we are in the pantheon now
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look at the next slide the simple month of february think about '01 right after a crisis and so forth. '09 gep. now the chart, what we know -- actually one more. lets look at this. the sixth worst calendar week down these are epic dates going into the war. this is '32 plunging lower havre that 3308, '08 plunging. you can cite any example the chart itself no drawings or annotations by me we know it's not random right back to the peak of january of 2018 it's exactly a retracement that can be sort of noted look at the next chart and you'll see that we went up 10,050 points.
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that's a 50% retracement the market held there. it's about this. what will it take to make new highs we left so many people stranded money poured in in january and february not to negligence okay. 401(k) contributions all that money burned it's not about the downside it's that the upside is so capped. >> upside very capped. >> carter weather thank you very much. >> carter we are seeing more in 15 minutes for the special edition of "options action." speaking of specials again, our -- everybody everybody back at cnbc working night and day to keep you informed on the virus and markets. shout out to everybody and tune in tonight 7:00 eastern time cnbc special reports markets in turmoil all right. we are getting started here on "fast money. up next taking your questions. if you want to know how to navigate the market volatility tweet us at cnbc "fast money" we'll tackle a couple of questions.
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i'm sure you have a lot of them. we'll be right back after this hilton garden inn, ya did it again. this omelet is even better than yesterday's... ah, that's what you said yesterday! that was yesterday, chris. same time tomorrow, judy? i'll be counting down the breakfasts. hmm. could i get a little more coffee? oh, of course! for the best price, book at hiltongardeninn.com.
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oh no, here comes gthe neighbor! probably to brag about how amazing his xfinity customer service is. i'm mike, i'm so busy. good thing xfinity has two-hour appointment windows. they have night and weekend appointments too. he's here. bill? karolyn?
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nope! no, just a couple of rocks. download the my account app to manage your appointments making today's xfinity customer service simple, easy, awesome. i'll pass. welcome back to "fast money. we've got breaking news. a new coronavirus case in the puns lets get the latest from hq. >> hi, brian that case from
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santa clara, the health department confirming it's now the tenth coronavirus case in california they are hold agnes conference in 40 minutes bringing the total confirmed cases to more than 83,000, about 83,700 deaths. 2059 in the california ten in the u.s. the president held a news conference short time ago. santa clara hold agnes conference at 7:00 p.m. eastern. chk brian we will be tuned into that yet another case. tenth in california and 61 in the u.s. brian, back to you. >> we have to look at futures and rg on that news. certainly i want to call attention quickly before we go to break bring up tulurian this is irrational movement we talked about the stock booming after hours bizarre. the only news of the company on the was stenting the memorandum of understanding with the lng
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company. the market pounded account the company now up 36% because of the mention of the name. >> down to a $2 left closed added 1.80 the moves are going to be exacerbatewood any headline you see come out used as a proxy of the overall market we don't know how much traded. >> the reason i bring it up we had the ceo on the network full team coverage of the historic sell i don't have continues. here is what's coming up next. >> got a question about what you should do after this wild week on the markets tweet us at. we are answering tweets after the break. and later if you have never dipped your toe in the options market, you might want to start looking now. we'll tell you everything you need to know about now necked protect you against a further 'vgollf. wee t all that and more when wee t all that and more when we come back
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welcome become lets go around the horn to find out how to set up for monday morning. tim what do you think. >> don't expect for a wholesale change in market sentiment even though we could get plus or minus on the news flo flow you are finding the handful of stocks and starting to nibble on index, etfs things that give you exposure if you feel this is the time to be opportunistic you're not putting all the power to work on monday ob tuesday. that's the discipline. >> pay attention to what you hear over the weekend. pay attention to cases, pay attention to central banks on monday see if the 285 a level continues to hold that's very important and you still have that pension fund rebalance to think about. >> i would say that stocks did not close on lows but 10-year treasury yields did.
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that's not great but the talk about further ease something put on pressure. >> the good news is where the market traded down to and held in terms of s&p 500. look for that in the futures on sunday night. >> and maybe something from the fed. guys thank you all week long great job. stay tuned we have "tis opon action" and a special tonight, back after this.
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to give his money to charity, giving pledge when this californian walked away from his billion dollar company for good. he drives a chevy volt, flies commercial, and spends his days building grassroots campaigns for social and environmental justice. why? tom steyer believes every child deserves the same opportunities as his. a healthy planet. good schools. quality healthcare, living wage jobs, and life without fear of discrimination. tom: i'm tom steyer and i approve this message.
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and welcome to "options action" everybody. we have a very important show lined up tonight following an incredible, historic and wild week on wall street. here is what's on deck >> announcer: this week has witnessed a market selloff of historic proportions without precedent in its swiftness and wholly indiscriminate some investors see continued pain ahead, others see opportunity. whichever you may see, tonight we'll help you know your options. a special "options action" starts right now yeah and that's where we

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