THAT WILL DO IT FOR "THE CLAMAN COUNTDOWN," NOW
"AFTER THE BELL."
MELISSA: EXTENDING LOSSES IN THE
FINAL HOUR OF TRADING.
STOCKS CLOSING NEAR SESSION LOWS
AS OIL SETTLES BELOW ZERO FOR
THE FIRST TIME EVER.
UNBELIEVABLE.
UNBELIEVABLE. I’M MELISSA FRANCIS.
CONNELL: I’M CONNELL McSHANE.
WELCOME TO "AFTER THE BELL."
UNBELIEVABLE INDEED.
UNBELIEVABLE INDEED. WE’LL TALK A LOT ABOUT OIL.
THE DOW ENDS UP LOWER BY 2 1/2%.
DRAGGED DOWN BY BOEING, AND OF
COURSE EXXON WHICH MAKES A LOT
SENSE.
SENSE. S&P AND NASDAQ NOT DOWN AS MUCH.
S&P CLOSED 1.8% TO THE DOWNSIDE.
FOX BUSINESS TEAM COVERAGE.
PHIL FLYNN IS THE MAN OF THE
HOUR WATCHING ALL THE OIL ACTION
FOR US SO WE’LL GET TO PHIL.
LAUREN SIMONETTI ON MARKET.
BLAKE BURMAN FROM THE
WHITE HOUSE.
WHITE HOUSE. WE’LL HAVE MORE REPORTING FROM
WASHINGTON.
WASHINGTON. PHIL, LIKE I SAID YOU YOU ARE TH
MAN OF THE HOUR.
YOU NEVER SAW A DAY LIKE THIS.
TAKE US THROUGH IT.
>> NEVER IN MY LIFE.
A LOT OF PEOPLE WATCHING THIS
MARKET NEVER THOUGHT THEY WOULD
SEE A DAY LIKE THIS.
YOU HAVE A PERFECT SITUATION
WHERE THE CONTRACT COMING FOR
DELIVERY WITH NO DEMAND THERE IS
SOMEBODY OUT THERE RIGHT NOW
THAT WANTS TO SELL OIL AND THERE
IS NOBODY THERE TO BUY IT.
IN FACT THIS IS THE FIRST TIME
WE’VE EVER SEEN THIS KIND OF
SITUATION, CONNELL, AND IT COULD
BE A SHORT-TERM SITUATION
BECAUSE YOU LOOK AT SOME OF THE
BACK MONTHS AND THE PRICE OF
OIL, THERE ARE STILL RELATIVELY
STRONG COMPARED TO THE FRONT
MONTH BUT THIS IS A DISASTER.
IT IS A DISASTER BECAUSE OPEC
DIDN’T ACT FAST ENOUGH TO CUT
PRODUCTION.
PRODUCTION. IT IS A DISASTER BECAUSE U.S.
PRODUCERS DIDN’T PULL BACK FAST
ENOUGH.
ENOUGH. IT IS A DISASTER MORE THAN
ANYTHING BECAUSE THIS IS A
SNAPSHOT OF WHAT THE WORLD LOOKS
LIKE WHEN IT STOPS, WHEN
ECONOMIC GROWTH GRINDS TO A
HALT.
HALT. AND I THINK WE LOOK AT THE
HISTORIC NATURE OF THE WTI
CONTRACT, SORT OF BEING LIKE AN
ECONOMIC BAROMETER OF THE WORLD,
WE’RE SEEING WHAT THE WORLD
LOOKS LIKE WHEN IT STOPS AND
THAT’S A NEGATIVE PRICE FOR
CRUDE OIL.
CRUDE OIL. CONNELL: NOW YOU USED THE TERM
SNAPSHOT, PHIL, AND THAT MIGHT
BE THE MORE, THE MOST
APPROPRIATE TERM YOU CAN USE OWN
A DIE LIKE THIS.
TALK A LITTLE MORE ABOUT THE
VALUE OF CRUDE OIL BECAUSE IT IS
SO STRANGE TO SEE IT UP THERE
THAT IT HAS GONE NEGATIVE AT
$30.
$30. TO YOUR POINT THAT IS THE MAY
CONTRACT FOR THE MAY DELIVERY.
IF YOU LOOK CRUDE FOR JUNE
DELIVERY, MORE ACCURATELY TRADED
CONTRACT, WE’RE AT 21 YOU BUCKS
YOU ABOUT THE VALUE OF OIL?
>> IT TELLS ME THERE IS HOPE WE
WON’T REPEAT THE PROCESS IN THE
COMING MONTHS.
COMING MONTHS. THERE IS EXPECTATION WE’LL SEE A
DROP IN PRODUCTION BECAUSE OF
THE OPEC CUTS, A DROP IN
PRODUCTION BECAUSE U.S.
PRODUCERS ARE PULLING BACK AND A
HOPE THAT THE GLOBAL ECONOMY IS
GOING TO SLOWLY GET BACK TO
NORMAL.
NORMAL. WE’RE SEEING HOPE PRICED IN SOME
BACK MONTH CONTRACTS BUT THAT
DOESN’T DO ANYTHING WHERE WE’RE
AT TODAY, IN THE NEXT 24 HOURS.
RIGHT NOW REFINERS ARE RUNNING
AT VERY LOW RATES BECAUSE THERE
IS NO GASOLINE DEMAND.
SO THEY’RE NOT BUYING OIL.
A LOT OF THE STORAGE FACILITIES
ARE GETTING FULL UP.
SO THEY’RE NOT BUYING ANYMORE
OIL.
OIL. AND SO THE OTHER THING YOU’RE
SEEING HERE WITH TODAY’S MARKET
IS A SNAPSHOT IN TIME WHERE THE
BUYERS ARE BASICALLY BEING PAID
TO TAKE THIS EXTRA OIL OFF THE
MARKET.
MARKET. THAT WON’T GO ON FOREVER.
WE’RE GOING TO SEE ECONOMIC
GROWTH GO BACK UP.
WE’RE GOING TO SEE PRODUCTION
FALL BACK BUT IT IS UGLY RIGHT
NOW.
NOW. CONNELL: IT IS UGLY TO SAY THE
LEAST.
LEAST. UNBELIEVABLE TO SEE THOSE
NUMBERS ON THE SCREEN.
THANK YOU, PHIL.
LAUREN SIMONETTI, WATCHING HOW
THE STOCK MARKET REACTED TO ALL
THIS TODAY.
THIS TODAY. LAUREN?
LAUREN? LAUREN: WELL NOT GOOD, CONNELL.
WE CLOSE NEAR THE LOWS OF THE
SESSION.
SESSION. TO GIVE YOU PERSPECTIVE FOR THE
DOW AND S&P 500 COMING OFF TWO
STRONG WEEKS FOR THE STOCK
MARKET.
MARKET. SO STARTING THIS NEW WEEK FIRMLY
IN THE RED, THE DOW DOWN 592 AT
THE CLOSE.
THE CLOSE. I WAS ABOUT TO TELL YOU THAT THE
NASDAQ WAS THE OUTPERFORMER WITH
COMPANIES LIKE NETFLIX AND
AMAZON NEAR RECORD HIGHS BUT
THAT IS NOT THE CASE.
THE NASDAQ ALSO FINISHED RIGHT
NEAR THE LOWS OF THE SESSION
TODAY TOO.
TODAY TOO. I WANT TO SHOW YOU THE INTRADAY
PICTURE OF THE DOW JONES
INDUSTRIAL AVERAGE, YOU CAN SEE
RIGHT AROUND 2:00 P.M., WHEN THE
PRICE OF OIL STARTED TO FREE
FALL, THERE IT IS, THE MARKET
STARTED TO COME DOWN A LITTLE
BIT MORE.
BIT MORE. LOOK, I STILL SAID THERE IS NO,
NO ONE IS USING THE OIL AND
THERE IS ALSO NO PLACE TO STORE
THE OIL THAT IS A BIG PROBLEM,
IF YOU LOOK AT THE DYNAMICS OF
THE MARKET.
THE MARKET. ON THE DOW, EXXON AND CHEVRON
WEIGHING SHARPLY, CONTRIBUTING
NEGATIVE 40 POINTS TO IT.
THE DRILLERS GOT KILLED TODAY.
MARATHON, OCCIDENTAL DOWN IN A
BIG WAY, ALSO TAKE A LOOK AT
THIS.
THIS. HALLIBURTON SHARES.
HALLIBURTON SHARES. THIS IS ONE OF THE NATION’S
BIGGEST SUPPLIERS OF OIL
EQUIPMENT TO THE OIL INDUSTRY
IT, FINISHED HIGHER.
THE PRICE OF OIL IS IN FREEFALL
YET HALLIBURTON SHARES ARE UP
2/3 OF 1%.
HERE IS WHY.
THEY ANNOUNCED COST CUTTING.
WE ARE LIVING IN A CRAZY MARKET.
ANOTHER PART OF THE MARKET THAT
HAD TO DO WITH OIL IS SHIPPERS.
SUPERTANKERS SITTING AT SEA WITH
MILLIONS OF BARRELS OF OIL ON
THEM.
THEM. LOOK AT THE REACTION.
TK UP 20%.
SCORPIO TANKERS UP 18%.
SO THAT IS COME GREEN ON THE
SCREEN FOR YOU.
ONE THING TO NOTE ABOUT OIL,
CONNELL, AS I SEND IT BACK TO
YOU, IT IS EXPENSIVE TO TURN OFF
A WELL FOR INSTANCE.
AS WE LOOK AT THE OTHER SIDE OF
THIS PANDEMIC THAT HAS GROUND
THE ECONOMY TO A HALT, WE LOOK
AT RECOVERY, WHEN WE WILL NEED
OIL AGAIN, WE MIGHT NOT BE IN A
GOOD SITUATION BECAUSE WE’VE
EFFECTIVELY SHUT DOWN SUPPLY.
JUST SOMETHING TO CONSIDER AS WE