this coronavirus is showcasing another uncertainty level and we do not know what 2020 might bring. on the flipside, we will see secular growers that are continuing to capitalize on these long-term . we have talked about them. digital advertising, cloud computing, which continues to show that the market for this disruptive change is just starting and these companies are executing on a long runway ahead of them. some may use that as an excuse and some will hopefully showcase performance numbers. as we all know, growth is in limited supply. i think global expectations are about 3%. for those companies that have topline growth in excess of that, there are very few. i think less than 5% of s&p 500

companies. i think you will get rewarded for that growth rate because it still matters, especially in this uncertain time. romaine: the s&p 500, the biggest decline. deficit for point the dow. volume in the dow and the s&p 500 above the 20 day average. that typically happens. when you have a drawdown, you see more activity than when you are melting up. have pretty much erased all of our gains for the year. the dow is in the red. a week ago, we were up. joe: it does not take much to move on the downside. fewine: there were a companies moving significantly higher.

julienned d.r. horton which taylor riggs talked about. scarlet: definitely earnings at play. romaine: let's dive into the action. abigail, get us started. abigail: for those big declines for the major average, it needs the s&p 500 has finally snapped that streak of small moves. it has happened in the past when those streaks of complacency have been broken. big volatility ahead. the charts also suggest that the s&p 500 in relation to its 230 day moving average. it has tended to come back down. we have been making that point recently. 11%, the most over the last year. over the last two days, we now have the s&p 500 coming back down today toward the 200 day moving average.

down -- rounding down suggesting we could see a pullback and maybe even the s&p 500 does go down to the 200 day moving average. mike: obviously, the coronavirus has taken all the blame for this selloff and energy companies are the worst performing group because of concern about lower demand for travel. the two biggest decliners over the last two days are very much earnings related stories. both of them are consumer credit card companies. discover financial is down about 13% over the last two days, it's worst back to back 2009. synchrony, the largest provider down about 10%, over the last week. for the macro we are in, the question is, are these stocks showing some kind of trouble with the consumer credit space?

a bit of an uptick in delinquencies and charge ups. but both are recording higher spending. discover, it is technology and marketing. synchrony, it is new cards linked to venmo and verizon. other credit card companies reacted positively after the earnings last week. over those two days, american express is little changed. capital one only down about 4%. very much a mark roast -- a micro story rather than a macro story. up for shares of sprint -- off 4% even after coming up with better than expected earnings for fourth quarter subscriber growth. up 60% year-over-year. the problem is, they lack scale given that they are the smallest major u.s. carrier. they really need to boost some of the subscriber growth.

the problem is, and the ceo is mentioning this on the call, it is all in limbo depending on the merger with t-mobile that is still hung up in court. you can see shares of sprint down about 70% while t-mobile is up about 33% or so. clearly, they are bearing the brunt of this. we are still waiting and waiting to see the result of that subscriber numbers this morning. us, luke kawa, and a portfolio manager from boston. every time we have had volatility, every time we have years,loffs for like 10 buying the dip has been the right move. when there is something out there as hard to quantify as the

is thinking who about looking for opportunities to buy things that they already get? luke: you hit it on the head that those historical analogs are not useful because the -- because this is a more rare form of risk. the thing people are trying to get their head around is what levels really matter. i have seen everything between 3250 and every five points weween 3200 is a major level need to hold. investors need to get back in their game, after -- even as energy is the worst performing segment of the market, still the micro stories are over weighing it.

you have low yield fears about growth until these mega tech names. scarlet: mike wilson at ubs wrote a report today saying that the first stock market correction since october has begun. when we talk about corrections, they tend to be a 10% drop from the peak to the trough. in this case comey says it will be more like a 5% -- in this case, he says it will be more like a 5% pullback. >> i think folks that are looking for reason to sell will have plenty in the next couple of weeks. i think we would be kidding ourselves not to expect that the number of potentially folks who are infected with the disease givenontinue to increase the population not just of the

city that has been quarantined but china's population in general. that being said, and using history as our guide, consistently, over the subsequent six-plus month period , the s&p 500 continually is up since the first occurrence of any one of these spikes. h1a, h1n1, sars, or others. it is ensuring that you are using this uncertainty seeping into the market to pick up opportunities that, as long-term thestors, truly value innovation space that are giving those opportunities now. bethink it is a time to selective and pick your spots because the market will give you

either because of earnings or other unforeseen events. romaine: despite the fact that we have had this selloff today, does this -- i always feel sort over steady here. i was wonder how vulnerable the market is to another surprise, whether it is escalation in the coronavirus -- coronavirus or some other event that comes out of nowhere. how vulnerable are we? the market mechanics prior to last week when we knew we would get a much slimmer curve, we knew that they were very long in terms of equity exposure, we knew that earnings were up. none of those things have really changed. we areail mentioned, still not far away from the 200 day moving average. romaine: it is not just equities. eight points coming off the 10 year. in the past, when we have had

issues crop up whether it is impeachment, iran, you have not seen that kind of reaction, particularly in some of those quote unquote safe havens. luke: i would go back to pointing to, you are only getting the reaction because of stocks. these things are not going to publicly move to this extent. i am looking at the calendar on the days ahead. apple, starbucks, harley-davidson tomorrow. goldman sachs holding investor day. of course, the fomc decision on wednesday, the boe decision on thursday. fourth quarter gdp. forget, the u.k. is scheduled to leave the eu on friday. which of these data points or events has the potential to surprise you the most, do you think? >> i think we need to see earnings come through.

i think apple will be a market moving event because the stock is up at hundred percent i believe over the past 12 months and all of it is on multiple expansion because of the perceived value in that story and transitioning to a service story. knowing how much apple comprises russell growth, this will be an important event not just for apple but a whole host of the tech space and the ecosystem. scarlet: we will watch apple tomorrow after the close. our thanks to eaton vance equity na barton.manager ya and, luke kawa. miss?" is next. this is bloomberg. ♪

romaine: live from bloomberg's headquarters in new york, i am romaine bostick. u.s.is a snapshot of how stocks closed today. chip companies and oil companies lead a broad selloff. sell first, ask questions later. worries over the coronavirus snap a three-month calm in markets. fitness companies benefited from the economic expansion but now some middle-market gems may have gotten too bloated with debt. companies and the nasdaq 100 headed to earnings season with the highest forward valuation since 2007. we will discuss whether that should make investors nervous.

joe: the coronavirus continues to spread as china struggles to keep it contained with the death toll in the country alone rising up to at least 80, from just two over a week ago. joining us with the latest, bloomberg's shery ahn. is there any sign of slowing or containment or anything at this point? shery: i was so surprised, we left the office last week and the number was not that drastically high. over the weekend, it jumped to at least 80 deaths. around 2700 confirmed cases. five cases confirmed in the u.s.. 110 people under monitoring. the u.s. now telling people to reconsider traveling to china. the virus has spread to 13 countries. wuhan said that for the lockdown of the city, already 5 million people have left the city.

ofrlet: there will be a lot finger-pointing among people. the mayor reviews -- the mayor refusing to resign. , iterms of the death rate is not that much worse than any kind of normal flu situation. yes, there is a lot of concern, a lot of panic. good thing that you mentioned the flu. the death toll of this flu season alone, more than 8000 people. you compare that to this -- sars, the death rate was around 9.3%. the death rate is low. but i understand the fear because apparently the incubation period was 14 days. some of the people who died were not even displaying symptoms of any fever.

travel you do at these checkpoints where you have temperature screening in the airport you cannot even apply that the symptoms can be from very ill to mildly unwell. there is not great understanding of how contagious it is. if you are mildly ill, you have symptoms of a cold. scarlet: thank you very much. for more, don't forget to check and"daybreak: australia" atybreak: asia" starting 6:00 p.m. eastern time. dr., thank you for joining us again. as we just mentioned, the latest 80 fatalitiesast versus two last week. are you more anxious than a week ago? >> it is sort of expected that now we have a better idea how contagious the virus is.

when you compare that to the sars virus. in terms of contagiousness, we the reproductive , some saythe virus that is more than six, which means that one person, on average, when infected, could infect six people. joe: based on what you have seen, should other countries were governments be doing more currently took, say, restrict travel? or, are most authorities around the world engaging in what they are doing? certainly, it makes sense to take cautionary measures.

we have seen the outbreak in parts of china. givensing rapidly, china's linkage with other parts of the world, also global travel. it makes sense for other andtries to be vigilant take precautionary measures including doing outboard screening measures. sensee: can you give us a of just how easy or hard it is to transfer this virus from one person to another? we used to think that this virus only -- now, there is more viruslikehat this

sars is airborne. it is going to be a drop that will be expanded in the air for quite some time, could cause the infection. from thewe have heard united states authorities that they have not heard any new cases according to the centers for disease control. at this time in the u.s., the virus is not spreading in the community. is it fair to draw that conclusion given that the toubation period can be up two weeks. >> the problem is not only that the incubation period is longer 14n sars, could be up to days, but we know that

asymptomatic carriers can transmit the virus. not means that people showing any symptoms can transmit the virus. joe: that is one of the more concerning affects. what are the shorter and longer term things to do so that we don't have another new epicenter of the virus? >> i think now, most of the conductedan only be at the individual level. wash your hands. avoid going to crowded places. minimize the chances of exposure. to a senior thanks fellow for global health at the council on foreign relations. from new york, this is bloomberg. ♪

are continuing to monitor the market reaction, the big selloff we had today, the nasdaq. the route the big rally, it really has been tech stocks, the nasdaq-heavy index leading the way. for more on this. let's bring in the process at reporter. we want to bring in some of these big tech names. what is most striking about the action? >> the fact that we finally saw some action. friday, we did get a bit of selloff. until today, we did not really get anything that felt serious. we finally did see semiconductors leading the way lower, semiconductor stocks leading the way lower. we actually have the first day of active back declines in over

a month. that thehowing you concerns are spilling through. people are concerned about this. when i speak with investors, they still see this as an opportunity. scarlet: you mentioned, by the depth. jp morgan saying scares like this historically end up becoming buying opportunities rather than catalysts for longer sustain selling. in terms of the correction we could get, what are you hearing in terms of which sectors are most vulnerable. what it be ones like the travel companies that are more directly exposed? seen it so far affecting the companies directly exposed. leisure companies, casinos in macau, airlines, that is where

we have seen the outside exposure and the most pain seeps through. technology, it is interesting. when i continue to speak to investors, this continues to be a place where people want to see their money. romaine: you had a chart in your story where you showed the earnings growth. q1, down. q2, down. q3, down. 65%ite that, we are up like since the christmas eve 2018 massacre. now we are heading into q4. with these valuations, you are saying people are still willing to wrap their arms around this? and they are seen and i am crazy? you have to remember, we almost saw a flip-flop in earnings reaction and earnings growth and price performance.

in 2018, we saw tech stocks fall drastically. we saw the market fall drastically. that was the year in which we saw earnings growth up 20% for three straight quarters. romaine: this chart here, is this the hope everyone is looking at? for the fourth quarter, we are expected to see relatively flat profit growth. by the end of 2020, we are expected to see double-digit profit growth. i should point out, even the quarter coming around, more focused on the semiconductor side. when i talk to investors, they mostly say that technology is vital to the future. scarlet fu hope springs eternal. sarah ponczek, thank you so much. up, days before the iowa

caucuses, the frontrunner status still unclear. this is bloomberg. ♪

opening their arguments on saturday, president trump's defense lawyers resumed their impeachment trial presentation today by saying how managers failed to prove -- proved --se managers managers failed to prove the president should be removed. this comes after a bombshell in which john bolton disclosed a link between financial support to ukraine to that country's help with investigations of joe biden. tosident trump's team turned

clinton prosecutor ken starr. >> we are living in what could be described as the age of impeachment. in the house, resolution after resolution, month after month, has called for the president's impeachment. friday could be a key day for senators to decide on votes whether to subpoena witnesses or key documents. a ruling that the trump administration could put in place a policy connecting public benefits whether immigrants could become permanent residence. it could deny green cards over their use of public benefits including etiquette, food stamps, and housing vouchers. has urgeddepartment u.s. residents to reconsider travel to china due to the

coronavirus, first identified in the city of wuhan. the government may also implement travel screenings at its borders. the illness has killed 80 people in china and second more than 2700. cases have been confirmed in 15 countries. there are five confirmed cases in the united states. survivors of the auschwitz -birkenau death camp wept as they marked the anniversary of its liberation. warning about the growth of anti-semitism and hatred in the world. the polish president told those at the commemoration, which included the german president as well as christian, jewish, and muslim leaders that, "the magnitude of the crimes committed in this place is terrifying but we must not look away from it and we must never forget it."

global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. am mark crumpton. this is bloomberg. joe: just one week to go until the iowa caucus and a new emerson poll showing vermont senator bernie sanders opening up a lead in the race. gray,g us, breanna joy national press secretary for the sanders campaign. i have to do a disclosure here. i volunteered for your boss in a house race. importantget that disclosure out of the way. in the last several weeks, i think for a lot of people, the prospect of sanders winning the nomination as started to become more real. in a general election, with

unemployment at 3.5%, people's satisfaction of the economy the highest in multiple decades by some measures, how challenging will that be to run on a message that is very much about the economy. what average,nk everyday voters realize, even when the economy is doing well, many don't feel it. a small handful of people who own as much wealth as the bottom 50% of americans. if we look at the gains this country has seen, they have been distributed to the top 1% and not distributed equally among people working so hard to make that value occur. people do not need to have their hands held and have it explained to them that even if the economy is doing well, real wages are not going up, it is hard to afford housing, people are withed -- people are stuck

student loan debt, the interest of that debt is rising. joe biden saying nothing will fundamentally change, that is not a winning message. romaine: looking to the general election, i remember the trump campaign used the same talking points, talking about how unemployment is not a number, but a feeling. there are a lot of his supporters who feel like the economy is doing well. how does bernie sanders reach out to those people and say, i am the better option than the current administration? briahna: if you are one of the 1% who benefited from trump's tax cuts, i think you do feel the economy is doing better. his supporters did skew more affluent. when i talk to people who identify as republicans and independents -- member of a bernie sanders does better with independence than anybody in the field. remember, -- what they are dealing with is a feeling of per

carat he, that their dollar does not go as far as it used to. in town halls, people are pouring their hearts and souls out about health care experiences in particular. remember, medical bankruptcy being the number one cause of bankruptcy in this country. that cannot be stock up to the ups and downs -- be chalked up to the ups and downs of the economy, that is a long-term problem. scarlet: president trump has begun to fixate on senator sanders more than in the past. part of that is speaking to the white working-class voters that may be more vulnerable to being picked off by senator sanders. what is the reason for the average president trump supporter to consider senator sanders, especially if they are white working-class and not in a fitting from the economy. thehna: we often talk about white working-class as having

interests that are apart from the working class in general. with the sanders campaign is doing is disrupting this idea that we can divide people up and pit them against each other, and say one of the biggest shared identities in this country that has been ignored by both parties is that of the working-class has a whole. black working-class people, hispanic working-class people, white working-class people, they all identify health care, education, the economy as primary concerns. when they are asked who is trusted the most on those, particularly health care, sanders is top of the list. can't he gain traction with african-americans? briahna: i dispute the premise. he is number two with african-american support and he is equally divided with joe biden in terms of who they will vote for. he has shown he has a much

better ability to connect with race thanrs in this anyone, including joe biden, with benefiting from name recognition and being vice president to barack obama. joe: elizabeth warren has been asked, how are you going to pay for these plans? senator -- the sanders campaign has not put forward spending plans as much as warren has. is there going to be more flesh on the bones in terms of the tax and spending plans? briahna: it is bernie sanders bill, right? damn and we are talking about medicare for all, many people have taken that name and tried to brand their names with that popular moniker. it is only bernie sanders who has written the legislation

currently before the senate which is in fact medicare for all. he gave an answer that was clear enough and direct enough that people did not feel like they had to keep repeating the answer to get to the bottom of the truth. bernie sanders has been a smallent that with tax rates, lower than what people are currently paying for co-pays, premiums, and deductibles, they can have full care. we are currently paying twice as much for not the same quality of care that other people get across the world. he has been i think more persuasive and clear of that message across. joe: let me ask you about a controversy over the past couple of days. the sanders campaign trumpeting the fact that popular podcaster joe rogan would support senator sanders. rogan has said things in the past about people who are trans and so forth. how do you view who gets to --

anyone can vote for anyone who they want, but how do you draw the line of whose support gets amplified? briahna: i think when you have a coalitionmulti-racial like we have, the most working-class, diverse coalition , there will be people in the camp who do not agree with every aspect of the policy. the important thing is, senator sanders does not change anything he stands for to solicit the endorsement of someone like joe rogan. senator sanders has the most robust policy for trans people in this race. he is supporting medicare for all that would include transition surgery, hormone therapy. plans for homelessness, which one out of five trans people experience in their lives. i think people need to look at maintaineing done and

skepticism about candidates who change who they are to get keep in mind that bernie sanders has not done that. romaine: thank you very much. we should also note that michael bloomberg is also seeking the emigrant nomination and is the founder and owner of bloomberg dealt -- seeking the democratic nomination and is the founder and owner of bloomberg lp. this is bloomberg. ♪

joe: despite the new year buzz and gyms, middle-market fitness chains that fitted from the economic expansion are now struggling with debt.

joining us, bloomberg's catherine doherty. obviously, if you go to the gym this week, still a lot of people in it. next week, probably less so. but thismany sectors one specifically, there are a few individual companies that are in the middle-market, not quite on the high end but also on the low end. offering those budget type fitness options. it is those traditional gyms that are offering equipment or maybe some of the classes you need that are starting to see the signs of debt popping up. because they are having trouble retaining members. romaine: we saw the debt loads go up across the industry but it is the idea here that people are gravitating to a i and jim like equinox and a low-end chain like planet fitness.

who is in the middle? >> we have the company who owns new york sports clubs of philly, boston, d.c. sports clubs. also, 24 hour fitness. in upcomingen both debt loads, that have a loan coming due in november that needs to be refinanced or be paid down in some way. 24 hour has bonds trading at distressed levels. you are seeing that because of the signs of both who is in the debt structures, who is investing and giving money to these companies, and also the why certainhind debt is trading. you are seeing that as a rates.n to earnings and excitement over the wellness trend, but at the same

time, these fitness gyms could service their debt as long as members keep coming in and pay their membership fee. it is the fact that they are starting to cancel the membership. >> another company also has debt but it is trading at bar. they are differentiating themselves because they are offering babysitting, new classes, they also own soulcycle and other brands. they are attracting that customer that will pay up. that is the differentiator. they are not quite leaving or coming back at the same rate as these middle-market players. scarlet: fantastic story. really interesting. of what israllels going on in the retail sector. let's get you to our latest business flash headlines. the official twitter accounts for more than a dozen nfl teams

have been hacked. those affected include the 49ers and chiefs, were added to the super bowl in under a week. packers green bay twitter page, they sent a tweet that reads, "we are here to show people that everything is hackable." rmine iscalled ou claiming to be behind the breach. casper mattresses is looking at an ipo. the strategy includes use of influencers to tout its strategy on social media. that is your business flash update. romaine: general motors detroit plant is going all electric starting next year. gm's president says the plant will add 2200 jobs and work on all types of trucks. take a listen. >> we are redoing the whole plant here to be our highest

tech, most forward-looking plant, everything from our battery electric trucks to the thecruise origin, autonomous vehicle we announced last week. it is a retool of the plant. $2.2 billion of that. a lot of jobs. jobs can be put back active into that plan. at warren, we are developing -- warren, michigan come right up the street, we are looking at new technology with electric motors. >> give us a sense of when you are rolling those electric

vehicles. that electric, we have heard talk about -- the electric h ummer we have heard talk about? >> there has been a lot of speculation. maybe you should watch the super bowl and you will hear more about that. our battery electric truck should be produced next year. we are on a fast timeline. manufacturer in ohio. the batteries for some of our electric products. we are really creating again a forly high-tech scenario the midwest and here in michigan and ohio. we have invested billions of dollars, probably $29 billion since 2009. that is a lot of money back in

to america and we will keep doing that. >> how many types of vehicles will you be making in your new facility there? we have not announced that yet i can tell you it will be multiple brands, multiple styles of trucks. not only pickup trucks, but suv's. finally, we will have our cruise origin, our autonomous vehicle for rideshare. it is really going to be something that is both ends of the spectrum, both the highest technology available but also nonmainstream conversion to electric trucks. that was the general motors president speaking exclusively with bloomberg. coming up, the world remembers nba legend kobe bryant. we will discuss his legacy on and off the court next.

romaine: basketball and sports fans around the world mourning the loss of nba legend kobe bryant, who of course died in that helicopter crash in california yesterday. he began a second career as a filmmaker, author, and investor after his retirement. we want to bring in bloomberg sports business per -- business reporter. pretty prissy and investments in epic games, which makes fortnite. i believe he had a sports drink as well. it seemed like he was kind of on the way to eclipsing in earnings what he made in basketball. >> kobe brought that same intensity, work ethic, passion, obsession for winning, he brought all of that off the court into the investment world. he cofounded a vc fund. games, alibaba, shallot

sauce, legalzoom. he invested himself, personally, the sports drink in 2014. coco bond a majority share last year. he has done pretty well for himself just in the investing space. scarlet: he retired about four years ago so this is what he has spent his time doing. athletes one of those that do this, when they are playing. he was with nike for a very long time. he counts oprah winfrey, ariella huffington as two people helped him along in the past. he made relationships that he then used when he was done playing. joe: one of the really tragic aspects, other people who died in the helicopter including his

daughter. she was a basketball player. he was a big promoter of her athletic career and women sports in general. >> she believe is the third or fourth youngest. he was very open about the fact that he did not have sons. fans would often come up to him and say, i wish you had a son that can continue your legacy in basketball. he used to love saying, i have someone who can continue my legacy in basketball, my daughter. kobe bryant got a lot of praise for the way he was parenting, specifically empowering his daughters in sports. romaine: in regards to his legacy and the investment space, we have seen a lot of other athletes move into these types upventures, whether setting investment vehicles, venture funds. i know he did not start this, but is this kind of one of his legacy is that he leaves? >> absolutely.

we have seen a push from athletes away from taking an endorsement check to athletes that want equity stakes. not theright, kobe was first but he was on the cutting edge of that. armor and hen body was also hands-on with that company. they had a recent marketing slogan that he came up with himself. and he was on set when they were filming commercials. you think of this next era of investor,celebrity kobe was doing the things that people like lebron james r now trying to emulate. scarlet: he was of course one of nine people who died in that helicopter crash. coming up, the cbo releases its budget outlook tomorrow. joe: i will be watching numbers for u.s. consumer confidence and consumer goods out tomorrow. romaine: apple and starbucks

reporting earnings tomorrow after the bell. "bloomberg technology" is next in the u.s.. -- joe: this is bloomberg. ♪

♪ taylor: i am taylor riggs in san francisco in for emily chang, and this is "bloomberg technology." coming up, big tech earnings tumble out all week. , amazon reporting. we start with apple. searching for the cure. biotech may be the key to help cure the potentially deadly coronavirus.

we will speak