- Coronavirus is also hittingthe stock market hard,

and the economy withclosing across the country

of restaurants and many stores.

Our CBN News FinancialEditor Drew Parkhill

is here now with us to take a look

at the fallout from the virus,

so how much of this ishurting the economy?

Are we looking at another recession?

- Okay, first of all, what'sreally hurting the economy

is not so much the virus itself, Efrem,

it's the preventativemeasures being taken,

as Lorie was talking about,

to prevent the spread of the virus.

That's why you have restaurants,

or restaurants are beingtold to closed down

in some states by governors,you know, to prevent people

from spreading thedisease if they have it,

or even potentiallyspreading it and so forth,

so it's those kinds of thingsthat are hurting the economy

rather than, you know, somany people are getting sick

and calling out from work.

So that's number one.

Number two: could it actuallycreate the spread of a virus,

or could it actually create a recession?

Yeah, it's possible.

Is it likely?

If you consider a recession to be

two consecutive quarters ofdecline, it may not happen.

The Federal ReserveChairman, J Powell, said

he thinks that this current quarter

we could see things pullback, but then, you know,

once we get through this,if Dr. Fauci's right,

and if it's eight weeks orso, then in the next quarter,

things may rebound very quickly,

so it's really hard to sayif it's actually gonna be

a technical recession, it's very possible.

It's possible we have onenow, then we have a rebound,

and then a slowdown next year.

We'll just have to wait and see.

- We will have to wait and see.

Now, we did see the stock market futures

sell off sharply overnight

after the Federal Reserveannouncement; what happened?

- May people are afraid thatthey may have overreacted,

or that they look at, thatthe feds see something

that the stock market doesn't,

and so they're goin', "Oh my gosh!"

You know, we had a big rally Friday.

You can't keep that up forever,so a pullback was okay;

they're expected.

But there is some concernthat the Fed sees things

that others don't and thatthe situation is worse

than everybody else sees.

- Is there more downsideto come for the stocks?

- Could very well be.

I wouldn't expect itto be a whole lot more,

but we could go lowerthan what we have already,

but we're a lot closer tothe bottom than we had been.

I mean, we could gounder 20,000 on the Dow,

maybe into the 18,000s,

but I doubt seriouslywe'd go much below that.

It's possible; no guarantees.

- So what about the long-term?

- In the long-term,we'll get through this.

We got through World War I,we got through World War II,

we got through the Depression,we got through 9/11,

we got through the Crash of '87.

Yes, in the long-term,

you're gonna see the Dow go much higher.

In the short-term, it'sgonna be a bumpy ride.

- All right, thanks a lot, Drew.

Drew Parkhill, our financial editor.

Thank you so much for your perspective.

Want to remind you to stay with us

for the latest on the coronavirus

as we provide continuous updates

here on the CBN NewsChannel, and of course,

you can find even more at CBNNews.com.