>> broadcom. they bought ca meantime 4% yield. 13 times earnings. it's the sleeper >> ual it's a steal here but also taradyne reporting tonight a good run if they miss buy more. >> thank you >> what a show. >> nice job. great stuff, guys. thank you. welcome now to "the exchange." here's what ahead. breaking news on boeing. the ceo speaks to reporters about when the max may get back into service. plus, business leaders in davos expressing concern about the coronavirus and the markets seem to be taking it in stride. netflix's new metric is raising eyebrows on wall street. two minutes for a view really that's ahead let's begin with today's markets. bob pisani is downtown at the nyse and live with another record day bob? >> brian, good to see you.

strong earnings report of ibm keeping the dow afloat but just barely new historic highs for the nasdaq 500, nasdaq 100, as well. we are waiting for that boeing conference call to start boeing is at a 52-week low right now. united airlines said it doesn't expect to be able to fly the 737-max this summer after boeing pushed back the forecast of regulators to sign off on that plane. elsewhere, two weak points transport down as the airlines, the shippers all weak continuing blowback from concerns in china. finally china may have said it is taking steps to control the coronavirus but the oil markets don't appear convinced i would note natural gas also getting hit on the warm weather experiencing so exploration and production names like marathon and apache all down. back to you. >> thank you very much. it was the best of times and

that dickens' line was president trump's message as he saturday down this morning in davos but of course you know how the rest of the opening lines for "a tale of two cities" goes. it was the worst of times and jpmorgan ceo certainly voices some of the more concerning aspects of the global economy and final markets today. listen to this >> we have an incredible economy. the consumer's never been so rich you know between the tax cuts and the regulation cuts, people forget about regulation i think it might have been more important than the tax cuts but we have a consumer in the united states that has never done so well and i think we're really poised to have -- i think we have tremendous potential we are at a point where we have done so well, i think we'll do much better. we have tremendous potential. >> chairman powell out of the dog house? are rates where they should be satisfied with - >> i don't want to talk

doghouse i wish we didn't raise the rates. i think the rates should go down the dollar's very, very strong and i think the rate should go down we have a very strong dollar and that sounds good and it is good in many ways but it is very bad in terms of manufacturing. i've created almost 700,000 manufacturing jobs the past administration said manufacturing is dead which i said, tell me about that you can't do that. and we have had a tremendous success but it's hard we are a strong dollar and i want the dollar to be strong, so powerful, great. but if you lower the interest rates so many good things would happen. >> the markets right now are fine they're in a -- goldilocks place. the only thing of trepidation is negative interest rates, qe and the diversion of stock prices. it is a great experiment and don't know the outcome is. the biggest surprise is

inflation. if any kind of inflation in the united states and right now people think central banks can do whatever they want. they can't they will have to be reactors opposed to just actors i think it's very hard for central banks to forever make up for bad policy elsewhere and that puts them in a trap and little bit in the trap today with rates so low around the world. >> this is one of the great companies of the world, let's say, as of a year ago an then all of a sudden things happened. i am so disappointed a tremendous impact. talk about growth, it's so big that some people say it's more than a half a point of gdp so boeing big, big disappointment to me big disappointment. >> lots of big comments from some big-name players. the president, of course, and ceo jamie dimon and joining us is portfolio manager and craig

callahan founder of icon advisers craig, i will begin with you you know, listen they were together in some ways. they were different. dimon sort of edict is to manage risk i look through your fund bank of america is one of your biggest holdings do you think the big banks and the financials are doing it right, managing risk properly? >> we are fine with that people worried about bank profit bl ability. they worried about a flat yield curve and banks were just fine the worries were irrational. we like where they're positioned. >> okay. sandy, how do you see it do you think that we are still in a growth period given everything that's gone on? >> yeah. it's interesting to see with low, low rates and inflation not where the fed's 2% target is and seems like the market can

continue to melt up further. the pendulum always swings too far in both directions and the question is how far can it swing? but things do look pretty rosie and look at the dividend yield on the s&p 500 at a 1.8. it is still higher than the 10-year treasury. >> craig, we heard paul tudor jones saying it looks ligke 199. i don't need to remind viewers over 35 what that means. there could be a slowdown. is that how you view it? >> we never use pe or price to book we find stocks on average right now to be about 13% below our estimate of fair value so we would expect the market to move higher over the next year. >> 13% below intrinsic fair value? on what metrics? >> yes we consider the earnings, we project the earnings into the future and then discount them

back to the present value considering interest rates and risk and computing value the market is below the estimate of fair value. >> maybe you think differently down there in new orleans and finding names that we don't normally talk about. teleflex and roper technologies. >> teleflex is a medical device company and they have a great urology product for men with enlarged prostate which i think no matter what happens that will continue and a strong name and we like roper a lot, as well they make okay wiizations in th market so one that i think will do well and while it is expensive it doesn't take into account the few you are acquisitions they'll make. >> okay, craig what would you like to see from the federal reservesome s

sit on their hands and just sit there? >> a year ago when they raised the fed funds rate they drained reserves and slowed growth to near 1%. that was terrible. then eased last summer we now why m-1 growing between 5.5% and 7% i'm fine with that. >> it was a pleasure to have you on the program we'll speak with you soon. thank you. >> thank you. speaking of the big-time macro of davos, don't forget to tune in tomorrow morning 8:15, treasury secretary steven mnuchin will be live 8:15 a.m. eastern time a big one you cannot miss. boeing's money woes. it is not just airline compensation and lawsuits they will have to pay out we'll dive in. plus, the coronavirus, to groundings could be a double whammy for the airline stock this is summer

we'll look at the ones that might be better able to handle the disruptions. >> from 70 to 2 minutes. a look at the announcement of netflix that caught attention. we are back in two oh, your mom just texted. she's landed. and she's on her way to our house. what. i thought she was coming next weekend. i got it. alexa. start the coffee. set the temperature to 72. start roomba. we got this... don't look. what? don't look. lets move. ♪ mom. the lexus es, eagerly prepared for the unexpected. lease the 2020 es 350 for $389 a month for 36 months. experience amazing at your lexus dealer. ♪

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welcome back the world health organization is set to hold an emergency meeting to discuss the risks of the coronavirus and killed 17 people and sickened more than 500 meg terrell has an update. meg? >> so this is moving quickly the case counts are mounting more than 500 people have been sickened in mainly mainland china and several neighboring countries have reported some cases and, of course, we had our first case in the united states confirmed by the cdc just yesterday a. man in his 20s in washington state, doing well and cooperating and they have stepped up screening here in the united states. the cdc marked three airports in the u.s. for entry screening lax, san francisco and jfk and yesterday they said they were going to add chicago and atlanta to that entry screening and all people coming into the united states from wuhan funneled

through those five airports and they're having a meeting whether to declare it a public health emergency of international concern, an acronym known as fake and they have only ever declared five others since 2005 and you can see the severity of those outbreaks including the two ebola outbreaks in the last five to six years. what that would so do is galvanize an international response and right now the problem is we don't know a lot about this and how well it spreads between people and how deadly it could turn out to be. >> they believe it's airborne? >> spreads similarly to sars and they basically say close contact so if we're talking within three feet it could potentially spread and other things sharing utensils, hugging, kissing, things like that similar to how you talk about the flu. >> i understand there was a warning i think from the chinese government particularly the residents of wuhan in the mid central area of china if you

feel sick do not go out. >> yes they're taking this very seriously and according to the eunice yune said to wear face masks and a city of 11 million people advised people to try not to travel. >> sit tight for a sec let's bring in dr. william schaffner professor of medicine at vanderbilt university thank you for joining us two quick questions. how real is the threat globally in your mind and how does it differ from a sars or h 1 n 1 type of illness? >> it does differ. the sars virus had a high mortality as did mers and it was spread, the sars virus, from person to person mers not so. each of the virus has an own personality or characteristics and as meg said we still don't know whether it's spread readily person to person

i think at the moment the international hazard is very limited but it's good that the world health organization committee is having a look at this and has it top of the mind. >> doctor, i was talking with scott gottlieb yesterday the former f da commissioner saying it could be adouble flu season and flu, of course, should not be underestimated. how are you looking at the risk of what this could end up potentially looking like >> in comparison, flu is a good idea as i've been telling people, influenza is going to cause many more hospitalizations and unfortunately many more deaths than this new coronavirus will this season. at the moment it looks as your data have shown there are hundreds of people who are infected according to the chinese authorities but at the moment i think the death toll is 17 i don't want to say only but that's a very big ratio. different than sars where it was

30 to 50%. >> this is a small percentage of those who have been infected so far. listen again, not minimizing anybody's pain and it could grow but 50 out of a global population of 8-plus billion, a fractional number as you noted there is a vicious influenza bug going around my daughter got it you don't want to overwhelm doctor's offices or e.r.s. look, they have a fever, start to cough watch the news hear about this. you don't want them to overreact. >> we clearly don't want them to overreact f. you get flu-like symptoms, call your health care provider don't go to the office and they may well prescribe an anti-viral for you. if you've been to china yourself or you have had contact with someone who's been in china, let them know that and then they'll putt you in the appropriate isolation precautions, collect the specimens, send them to the

cdc. i'm sure they get specimens now from around this country and see if there are any other importations at the moment we have just one there will be a few more but i don't think it will take off in the united states. >> already we are hearing about industry and government at the nih working on potential vaccines and therapeutics. do you think that's the potential solution if this becomes bigger and can those things get developed quickly enough to really help? >> sure. that's the right way to go and wonderful. the chinese scientists identified this virus, sequenced the genome and let the world science know about it. they shared that right away. so at the nih they're working now on a diagnostic test that would be quick boy, that would be helpful therapeutics, of course, we don't have a special therapeutic for coronaviruses and early

stages of a vaccine development, that's what we want science to do, we want to get ahead of this. >> yeah. as the last few years with that list that you provided us, a lot of bad things in the last decade or so. thank you for joining us meg terrell, of course you have that 2:00 call with the w.h.o. thank you very much. united airlines basically throwing in the 737-max towel for the summer are boeing's woes closer to ending plus, using virtual reality to learn how to deal with angry, rude customers at the store? it is happening. we'll tell you what they're doing and a reminder to watch us or will be to us live on the go on the cnbc app. download it today. just as soon as my audit's over, this gets my undivided attention. you take a lot of trips to the islands, phil? pretty great, right? oh phil's legally dead. fell off a boat. going by denis now. celery. long story.

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right now david calhoun of boeing on a conference call with the media, not being broadcast live but phil lebeau is on the call and he asked a question and we're going to get phil on the horn here or hopefully on camera on "the exchange" the moment he drops off that call. in the meantime, bring in michael bruno, senior manager of aviation magazine. boeing making comments of june, july

we we have heard comments before. is there anybody out there who is suggesting the 737-max will not fly this year or maybe ever again? >> i don't think anybody's suggesting that the max will never fly again. for all kind of reasons it's a must get back in the air scenario and not just for the airlines but for the suppliers, for boeing, everybody when's a stakeholder in the aerospace industry needs that airplane to get back up. it is a question of when. >> michael, isn't it a question of safety? there were two fatal accidents with the same plane. that has - >> there is. >> they're tweaking the software on and some people for months questioned the physical design of the airplane, specifically the engine position on the wing. >> that is true. it is a question of safety and every indication is that the faa is moving toward a certification, recertification to assume that it is a safe

airplane and people argued it will be the most scrutinized airline probably that's ever flown again so safety is correct but we're going to get there the question, of course, is when it looks like summer. >> phil lebeau just hopped off that call. welcome. the call is still going on what were some of the main headlines? what was the question that you asked david calhoun? >> that's why i was delayed in getting here i said, what was the trigger for the decision to put off plans for this plane or expectations of this plane being approved for flight again by regulators until the middle of this year? he said, basically, it came down to the decision that they made on requiring simulator training for pilots the rules still being written, how much training is required and remains to be said and he said once we made that decision it was clear that we needed to set perhaps a more realistic

time line and he was talking a few minutes ago about what the company is doing and their expectations. >> i believe that it gives -- puts the right amount of pressure and but at the same time enough time in for discourse with our regulator at every level. so that we can get to the answer sooner rather than later. >> that's dave calhoun talking about the schedule and i asked him about production and when it will start up again. we have a plant out there completely shut down i think the last max just gone through and so they're literally -- no more planes coming down the assembly line. he said they have a plan in place close to recertification or the indication to where almost need to be and communicate with the suppliers and then start laying out a plan for slowly bringing up production again on the 737 max.

but again, this call is only 15 minutes in we are going to talk to him until the top of the hour. >> okay. phil, we'll let phil go and keep michael bruno around two comments that we are getting from some of the headlines crossing on the call, a team listening to it, as well we have three comments so, michael, i'm going to read them. to the previous point, calhoun says no shareholder value without safety first and expects production will resume, quote, momts before mid-year return to service so that would imply to phil's point if you return the plane to service in august, maybe you're thinking april, may time frame calhoun says he does not think that recent wiring or software issues are, quote, serious problems to the return of the 737-max. this is the plane that's out of service for almost a year. if those aren't serious

problems, what is the problem? >> a lot of those problems are stemming from the fact that the airplane's getting looked over with a fine-toothed comb and from what we have heard at "aviation week" and i think you folks heard, as well, these problems are relatively speaking are not major stumbling blocks and working toward recertification. i am interested to hear if he said that he thinks production can begin before return to service. because i think the indications were at around christmastime when the ceo lost their job that they keep production halted until they got the ungrounding lifted so if they think they get production going again that's getting to be a bullish standpoint again. >> when the workers start making fuselages again, they know they have time. number one, let's talk about

international. yes, our pilots here in america, i believe i was booked on the last 737-max airline flight, march 13th, houston to lax no problem getting on the plane. they changed the flight the night of the 12th. scheduled to go -- it was like i think the last plane out and i was going to get on. i'm confident in our pilots. the issue is not training here this is a global plane isn't the real issue how this is handled around the world, or the training programs may not be as robust >> it is, absolutely there is a difference known between the pilot communities in the united states and the pilot communities through the greater world. in the united states, generally, there's a lot of experience. many of the pilots have military training this is the way over decades overseas there's a pilot crunch. there are not enough pilots and you have pilots coming in

essentially walking off the street, getting trained, fully certified locally and putt in the cockpit in a shorter period of time compared to in the u.s. so safety here when we talk about safety i really do think they're looking at safeties in regards to the pilot training worldwide communities in other countries where they don't have the american experience. >> finally, this is a school of thought that many consider just to be dumb or wrong or on the wrong track and some people agree or a dumbest idea ever nobody's talked about the public side of the story. what is the public going to do on the app, on any phone, see what kind of plane you're on i heard jim cramer talking about this this morning. here's the thing what happens if the public does not get on the plane suddenly united has a flight that's 40% empty because people don't want to get on it. what do they do then >> it will be a problem, certainly. >> ship the plane back to boeing give me a refund

this plane -- my customers will not get on it. >> yeah. i think what you are going to see are the airlines in particular kicking off a major pr campaign to try to convince the customers go ahead and fly it is safe we wouldn't put you in jeopardy. if that happens, enough customers not getting on the airlines are going to be spending more money and that means they're probably coming back to boeing to ask for more money, too. >> from's another potential financial hit for boeing, as well we appreciate your views on a still developing story thank you. >> thank you. still ahead, from boeing's woes to the coronavirus, the airlines, united, american, delta, facing other headwinds. are there any of the stocks that are actually worth owning? plus, the incredible story of a phone hack, a saudi prince and the world's richest man. new jersey, your big run in sports betting may have crapped out. why california could become america's sports betting capital. at fidelity, online u.s. stocks and etfs are commission-free.

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the hundred billion dollar club run, two of the top three stock stories right now. first up, tesla. shares of tesla now giving at a market cap after more than $100 billion. number of stock option bonuses for elon musk will trigger if the cap is up for one month and six mortgages. by the way, musk owns 34 million shares of tesla. worth $17 billion right now. stock two, ibm shares up today about 3% this after beating on both the top and bottom line and breaking year over year bekleins and better than execed full-year guidance and shares of drugmaker maderna up it said it's working to develop a potential vaccine for the coronavirus. stocks down. let's get a news update now with sue herera. >> hello, everyone

attorney general barr unveiling a new presidential commission on law enforcement meant to address the problems that it faces barr outlining those problems during his opening remarks at the justice department >> law enforcement faces more and greater challenges than ever before if the new obstacles presented by technology weren't enough, in many communities our officers also must confront a wave of social problems, such as homelessness and drug addiction and mental illness. >> democratic presidential candidate gabbard is suing hillary clinton for defamation and filed the lawsuit in a new york city court claiming clinton lied about her to harm her campaign. a 17-year-old girl in western india broken her own world record for the longest hair on a teenager with 75 inch-long tresses, it takes her up to half an hour to

dry her hair after watching it and just as long, about an hour to comb it takes my teenagers that long. >> i'm challenging that. no -- got to take much longer than half an hour. >> that's what i thought. >> to dry the hair. >> we'll see. >> 75 inches is 6'3" worth of hair. >> yes, yes. it's a lot of hair, brian. >> a lot of hair. >> a lot of hair. >> thank you very much. >> you got it. all right. netflix has a new view on views. california could be the sports betting capital and did the saudis hack jeff bezos' phone? woman: my reputation was trashed online.

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is two minutes a view? virtual job training was jeff bo zobezos' phone real

hacked welcome all. all right. topic one, netflix shares down a bit. disappointing subscriber growth domestically but netflix has totally changed its metric for what they can call a view. and it is one that will dramatically increase the number of views for its shows let's bring in julia boorstin with more. i don't think two minutes ever gotten more history than just now, julia. >> reporter: well, that's right, brian. netflix is changing how it counts its viewership of its shows so previously they would count a view if an account one of their accounts had completed 70% of an episode of a tv show or 70% of a film now they're changing that to when their accounts or members choose to view something, that means that they have chosen to watch for at least two minutes, not if it auto plays and said that the new metric is 35% higher on average. so they are counting more people

who are viewing two or more minutes and if they completed 70%. so of course this is drawing blowback on twitter. people saying if you turn off after three or four minutes then maybe you don't like it very much and netflix said that, in fact, this is similar to "the new york times" does with the most popular articles or bbc with the most searched for shows saying it evens the playing field for interactive shows. >> getting some cover there. eric, listen, investors look at the numbers and if the numbers of views go up it could influence the stock. >> data inflation. we don't know what a real number is consider a regular tv how, tha show had 5 million viewers, when we talk about regular tv, we mean that the entire show for its hour-long or two-hour long averaged 5 million the entire time and compared to this, tv is way under inflated to get the

people the entire length of the show so when they say super bowl with 100 million people, they meant 100 million people watched it the whole way, not for two minutes. totally different numbers. >> katd rodgers, not how we talk did you see the season finale? >> i turned it off after two minutes. >> you didn't watch it you didn't finish it i think net flix with this data inflation could skew investor thoughts. >> are they saying, hey, you seem concerned about the competition and inflating the viewership numbers and i understand the point of "the new york times" and youtube and the way that they measure those metrics but it's totally, totally different medium these are full-length shows. i tried out a lot of shows for two minutes. >> but they credit you for the entire series if you watched the first two minutes of the first of the series. >> what? >> yeah. >> no way. >> yeah. >> reporter: guys, to go back to

what eric was saying, think of how different this is with tv with advertising the ratings matter to know how many people seeing the ads netflix doesn't have ads reid hastings reiterated he is not interested in ads and cares about people signing up and hold on to the service and maybe think think of the intention to view as someone thinking that a show is worth at least checking out and matters for minimizing churn. >> fair enough but the executive producer of this fine program had the smartest thing to say all year today. gyms don't care if you go in there as long as you pay your monthly fees why does netflix care so much about how many people watch? if they get the 14 bucks a month -- >> you're buying. >> you have a gym paid for three years, the gym doesn't care. >> so much money on original content, right doesn't it matter if people

watch it for more than 0 two minutes? >> the content creators and for business is subscribers and ultimately this could be a sign of engagement, therefore leading to subscriber decline but that's all they care about. >> julia, thank you very much. by the way, speaking of media, our ceo brian roberts on "sidewalk box" tomorrow, ceo of comcast and parent of this network and talk about the fourth quarter results no doubt and the streaming product peacock launching i believe may 15th. next up, california already home to the most professional sports teams in the nation and soon it could be home to the biggest legal sports betting, as well golden state with a coalition of native american tribes to circulate petitions seeking to allow betting at casinos and horse tracks eric, once again, i'll go back

to you what the tribes are seeking is the ability of roulette and craps in the casinos, something not allowed now. >> so state by state we are seeing this growth around the country. it's been a couple of years since the supreme court allowed the states to do this. some states have the indian casinos as a powerful lobby. some have powerful casino companies. that's what's going on with sports gambling, look state by state and the ones gotten the things passed they all said, we'll make billions of dollars in revenue and then actually we were making $50,000 a month in revenue. >> someone is making money new jersey $3 billion -- >> there's the gross revenue in the bets you do the over, the under, the gross. >> but they take the middle. >> they take the vig, the casino takes the vig because the winners get money from the other guy and then the tax rate is

some small percentage. if you're betting $100 maybe $1, maybe -- it is pennies going to taxes so they give these numbers in billions because that's the dwroe gross that's spent. >> california's goal and don't want people on i-10 to drive - >> drive to vegas, yep. >> prim, nevada, right over the border and do it when they live in victorville if you live in california you know what i'm talking about. >> i have another question for eric, if i may is there an aversion within the tribal community they don't want it online? >> if you own casinos you want people in the casino. >> okay. that's what i thought. >> all right topic three, the next round of job training that you might get may not be from an actual human being. a growing list of major american companies from fidelity investments to walmart are turning to virtual training.

expected to hit $2 billion this year kate rogers, will this work? will it help encrease the better store experience which is why they ultimately care to get more shoppers in the door >> particularly in this story walmart was trying to teach the employees soft skills which are something that cannot necessarily be found in the population at large. it is something in dealing with customers that you want them to do a little bit better i think it is an interesting thing to do. we all know that skilled labor is a huge problem for companies large and small. small businesses are also dealing with this. so i think it's interesting and also a way to train your current staff and not actually use a person to do it. right? >> cheaper. >> right >> when i was reading about this, the vr brings you an angry customer standing in line with a back story. >> yeah. >> i'm just thinking do that with a person and replace people with machines which is what's

really happening. >> to teach people how to be better people. >> we need customer training how about customer training? >> people how to deal with people teach the people how to -- >> the robots training with the other robots and that's -- >> but the customers is always right. >> train the customer. address the person at the cash register. >> totally. >> call them by name anyway -- all right, topic four, finally -- >> customer's always right, brian. >> no they're not. the u.n. is call for investigation of saudi crown prince may have been involved in the phone hacking of one jeff bezos. roblt, you have been following this story >> bezos made a claim a year ago and now proof of what happened bezos at a dinner with mbs back in 2018 and they exchanged numbers. and the crown prince got jeff's number he shortly thereafter sent him an encrypted video file which

jeff presumably opened and shortly after that there was a massive leakage of data on jeff bezos' phone they don't have proof that mbs received it or that this was malware, spyware directly installed by mbs but we know that right after that he opened that file there was a massive amount of leakage. and what he says is that it's part of the saudi crown prince's desire to get revenge for jamal kosh gi's murder and - >> worked for the post. >> it was -- the world's richest and i suppose one of the world's smartest men opened up an enknown file - >> we don't know if he opened it but shortly after -- >> accepted it i believe you have to accept it. >> that's when the data leakage started. >> and the girlfriend family leaking information? >> we know that contrary to this is that michael sanchez, the

brother of lauren sanchez, jeff bezos' girlfriend admitted to sending "the national enquirer" the text messages and paid $200,000 do we need a saudi conspiracy to know how "the enquirer" got there? no. >> the risk of cyberhacking, if you're jeff bezos, i run amazon. i'm presumably a tech expert. >> the girl's brother sent the pics >> yeah. >> for money. >> but also what's interesting is - >> typical. >> it is oh. >> in the same swingwhere mbs got jeff's phone number, the crown prince also met with tim cook, the google guys, bill gates, oprah all of whom today you've got to know are checking the what's app for messages from mbs. >> thank you very much rapid fire is over robert, kate and robeeric.

if you try to gauge an impact of the coronavirus on the airline sector, look at 2014 with ebola take a look at shares of boeing. the stock seeing a bit of a comeback the ceo calhoun on a call right now with phil lebeau and the media. stock was down 4%. it is coming bag rigck right now we'll continue to bring you updates on boeing as we have them coming up om! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

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more breaking news out of the boeing conference call with phil lebeau. what do you got. >> two important pieces of news coming out of the conference call look at shares of boeing why are they moving higher davecalhoun was asked point blank has the boeing board of directors thinking about scrapping the dividend altogether, an idea thrown out there and he said no and when asked why because we have the financial strength and wherewithal we will mot change the dividend the other piece of news he was asked point blank just get rid

of the max scrap the plane altogether he said not going to happen. there is too much invested in this project and they believe too much in the plane and they believe that they are close to having a solution. they're not putting a timeline on it but that is why he's saying no cutting the dividend, no getting rid of the max. brian, back to you. >> dividend, i think $2.05 per share per quarter. it is pretty meaty have you talked to anybody who said they should cut the dividend you have spirit aero systems laying people off in kansas. >> no. because they have liquidity. they could raise debt, that is not an issue they have the liquidity and the financial where with withal. >> the call is still going we'll see you on power lunch. while the boeing kre has faith, the 737 max is grounded and now you have the risk of coronavirus scaring off travelers. what does this mean for the airlines we'll talk about it next.

>> deeper data and cnbc, the building index rose .0.6 to 52.5, the highest reading of the index in a year. it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya.

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airlines getting hit from two different sides. concern over the coronavirus outbreak continuing to grow and scaring off travelers and david calhoun giving an update on the 737 max so should you stay away from all airline stocks together we're joaned by dan floits and is there as much need as that max to return as southwest airlines >> no. amongst the u.s. airlines they're the most dependent on it roughly 10-ish percent should be on the max and so they've been the most impacted by the grounding. >> is that why you have a hold on the stock >> that's part of it part of our view is that southwest is going to have to seriously consider diversifying into another fleet type, namely the a-320 to ensure they could

grow and execute the strategy over the next few years. at a time when it is becoming increasingly unclear how much maxes they're going to be able to get over the next few years so we think that could create some complications to the business model and it may include m&a. jet blue would offer them the ability to gain access to the 320 with scale and also provide them with a pretty meaningful presence in new york which is a market that they've struggled with historically. >> -- about southwest flying from lovefield to the new york area i know not that long ago -- do you think there is a chance southwest makes a bid for jet blue >> i do. i think there is a chance. they've said that they are in the process of evaluating whether they want to stick with the 737 as their single aircraft or look at the a-320

if they elect to go with the a-320 and diversify the fleet i think m&a would be a consideration there. >> sand speaking of airbus, does delta hold a competitive advantage because they have no maxes. so from a branding perspective, it may help delta and their heavily airbus inventory. >> that is right delta doesn't have any max exposure and they've said publicly a few times now that they recognize that they've gained share because of the max grounding some of the share coming from southwest and they intend to keep that share and are making investments into the business to support that and so if you're southwest, you can't like hearing that. that one of your main competitors is planning on keeping the share that you've given to them. and so that's part of the reason that we think southwest is going to seriously consider changing the business model and going with the a-320. >> very interesting there.

joe dennardy of steefl, thank you very much. and catch our interview with american airlines ceo doug parker tomorrow at 10:30 they have grounded maxes that is a big one. that does it for us today. we'll see you tomorrow "power lunch" begins right now. >> welcome, everybody. i'm tyler mathisen and here is what is new at 2:00 on "power lunch. stocks are off the highs of the day as you see right there but they are still modestly higher the dow climbing back as boeing is making a little bit of a comeback midday. we'll talk about that one? and the stock almost positive. and phil le beau with comments from the new ceo and meg tirrell with the latest on the mysterious coronavirus and it is spreading in china and it is hitting our shores here. "power lunch