tests. they will focus on the consumer and therapeutic side of the business. we will watch that for you, and watch 9 markets as they round out this trading day. >> see if we can hold on to some slight gains. "closing bell" starts right now. yes it does. i'm at the wells fargo post, as regulators settle with or charge eight former executives relating to the scandal, including a massive fine for the former chairman and ceo john stump. more on that markets as they just mentioned recovering intraday, flat as we stand, 59 minutes left in the session. i'm sara eisen here in switzerland. president trump's favorite twister target, "new york times" and how it's pulling in record digital subscriber growth. and i'm contessa brewer.

let's look at what is driving the action stocks well off their lows, as we head toward the close with safe haven utilities setting a record high. bond yields take a plunge, and a mixed bag of earnings with dow and more lower on results. southwest and american getting a boost. joins us for the hour is stephanie link wee are we see solve momentum going into this last hour of trading? it does feel very defensive to me it's the utility staples, reits, outperforming some of sickly cattle let me for the first time, let's put the mac roa aside and focus

on earnings. we're hearing from companies about what's going on, and quite frankly i think it's the trough, and earnings are going up. meg tirrell has the latest details from the world health organization eunice is on the ground in beijing, and contessa is watching for the fallout casinos have a significant footprint in macau meg, let's start things off with you.

and the word today is it's not yet the time the committee was split down the middle, but said the lack of the spread for nour contributed to the decision they want it's expected that further international exportation of cases may appear in any country, so all countries, they say, should be prepared for containment contessa >> thank you for that, meg, eunice yoon, what are you learning >> seven cities and 23 million people are effectively under quarantine the cities are clustered an wuhan. the residents have been told to stay at home at outdied trains, flights, no car-hailing apps, and the only way to get out is to drive in

your car or face a taxi, if you do, you will face health checks along the way. the chinese government has been criticized for being slow to respond. it looks, though, as now that beijing is moving into overdrive. calling on companies like jd.com to continue to deliver to wuhan, and coordinating factories to boost mass production and distributing protective suits as well as other gear from the nation area medical warehouses guys >> eunice, you're seeing some pretty dramatic action on the part of u.s. companies with a presence in china as well, right? >> reporter: yeah, absolutely. there are several different companies such as ford, disney, gm, they're all taking measures to try to make sure their employees are protected. one of the things that they're doing is they are putting --

telling people to self-quarantine, at least for seven days, now for 14 days for some that's what people are say now is the incubation period for the virus. eunice, just looking at a map of china, wuhan is quite some distance from where you are in beijing what is the sense on the ground, is there a lot of fear hopefully not panic, but hower people reacting? >> reporter: there is definitely a lot of fear. i would also say some panic. the government authorities are aware of it, and are trying to calm things down it looks as though there's already a dampening effect on the lunar new year holiday, which kicks off tomorrow this is a time when most people are really, really supposed to be happy they're going to be seeing families instead what's happening is beijing was the latest city to join many others in cancelling

the lunar new year feats activities, and smaller decisions, such as several films being withdrawn when a lot of people go to the movies this time china saying they're going to refund all domestic flights and train rides really bodes poorly for the economy. this is a time when people usually spend. eunice, thank you as always. airline executives weighing in on the potential implications phil lebeau joins us from seattle with more. >> reporter: the big concern is this virus could lead to a big drop-off in the people who are taking flights this morning when we talked to the ceos of southwest and american, even though they don't have direct exposure to wuhan, both realize the implications and the steps that are necessary for the industry to take. >> i know we handle this exceptionally well, with great

care for our customers and team members. we do that by staying in touch with the cbp, the cdc, our own medical staff working with those agencies to ensure that our customers and team members of safe. >> this is not new we've been here before, going back to the sars epidemic 15 or so years ago we don't have exposure to asia, but that doesn't mean we don't have exposure here we're working with the cdc, all our operations folks are poised to step up our protocols if we need to, but this point we haven't made any changes in terms of our operations. >> here is why the coronavirus is potentially much more dangerous than sars was back in

2003 look look at the incredible growth of traveling on airlines. the bottom line is there's so many more people who are flying to and from china, that the potential is much greater than sars or some of the other past viruses that have led to concerns in the airline industry >> thank you, phil lebeau in seattle. contessa, you've been focusing on that impact. >> this is about macau looking for the casinos to get a boost the macau government has scheduled it's ordering all customer -- it's airlifting the masks to the region.

hong kong-based resorts are getting punished a spokesperson told me the hess is a report. wynn resorts down, las vegas sands down almost 7% mgm has regrained again, the real question is, what will happen, will it affect not just their january revenues, but all of first quarter for infection and immunity

relatively speaking, compared to a couple of the often mentioned previously pandemics what are the relative positives, and the relative negatives >> it's hard to describe a positive but in terms of relative negative the reaction to try to control the potential spread is understandable for those of you in china in to 03. it was devastating we don't have any evidence as

yesterd yesterday. >> i think both per tains. this would be people who would pass through a lobby and might become infected. for the most part we can link them so the transmissability may be less. that may be the case everybody. >> have been they have some underlying medical corns, where we had young, healthy people who

helped develop disease, and in some instances died. >> doctor, i'm just curious. influenza is rampant in my kids elementary school, it's killed more than 6600 people in the united states alone and feated as many as 18 million. when you look at those numbers, can you describe why we're seeing such an incredible response >> as i said earlier, in 2003, you know, what happened in beijing, for example, was devastating. when i was there, the streets were deserted, the mayor had been fired there was a general notion countrywide that people had lost faith in government. similarly people thought china was not being transparent and

shares, so the chinese are being quite forthright, and eager to demonstrate things are different now. >> doctor, final question. is this curable? how quickly can we develop the drugs to potentially make sure there's not a single further death? >> well, the most important tool that we have right now is isolation. to develop drugs means you have to, demonstrate they're not only effective, but there is a process that takes months. that would take us a year or more to do at present our best defense is people who are watchful, wary, if they reflect on whether or not they might be exposed to

this particular virus, they will voluntarily get diagnosed. >> doctor, thank you very much >> my pleasure. after the break, regulators handing down a massive penalty against john stump surrounding the bank's sales scandal details on the multimillion dollar fine, coming next. western digital gets a boost on a bullish call. why morgan stanley said there could be more up side ahead. "closing bell" will be right back ♪

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the occ has charged five wells fargo based on the roles of the sales practice misconduct in 2002 to 2016. the former ceo tops the list who have agreed to settle, while former head of the community bank carrie tolstedt tops the

list she. she gave up more than $66 million in pay stump stood down and surrendered $69 million in pay new ceo issued a statement saying the occ's statements are action consistent with my belief that we should hold ourselves and individuals responsible, and also significant parts of the operating model were flawed. at the time of the sales practice issues, the company did not have in place the appropriate people, structure, or culture to impact the conduct. it was inexcusable the stock is trading down a bit, more in line with the banks, not the bank itself. this stands out to me for a number of reasons as being hugely significant, perhaps unprecedented in terms of size and scale. i don't think a major ceo has banned for life from another

position, individually 17.5 million is a massive fine. the other thing that stands out is the strength of his statement. we saw him bury the hatchet, if it were for when the bank could come out of -- i didn't expect it to be so avertly critical >> he's clearing the deck and doesn't want to be associated with it. i'm surprised the fines took so long -- we have one settlement, we still have to get to other things $150 million a record, and that reverberating causing d dd & o costs there were millions of accounts, >> as a shareholder i'm happy he did, quite frankly i want this out of the way

i want him to focus on the fundamentals and turning this company around he has a big job ahead of him. >> he's already set the barlow on that. that's why the stock is only down a bit, and the charges aren't against the bank specifically, but certainly i think there's a change from when tim sloan was in place he's not charged, by the way the tone in general was never overtly critical whether tim sloan is friends with him or the bank didn't go that far, it hasn't happened i don't know if today plans into the timing of when the occ got to this place, but you also have to say for the regulators originally the settlement was relatively small we have waited, and now the occ has acted. i'm sure the individuals thought, i dealt with that, i agreed to my fine, my settlement and did so, because i thought that was it, and now this comes along a lot later.

we'll see how it goes. >> as i say, i'm glad this is now behind we can have a ceo focus on the fundamentals in turning this company around. >> wells fargo down about 0.5% today. barclays issuing a rare double upgrade it means there could be meaningful upside if they takes measures to improve the business what we can say is the status quo is not an option this comes after a number of upgrades this month on that stock. meantime morgan stanley upgra upgrading, raising price targets to $73 and $88 respectively. the firm says memory fundamentals are bottoming while demand prices continue to rise, giving those stocks more room to

run. finally ubs resuming coverage of tesla, raising the price target to 410 from 160, saying wheel they have a bullish view on the technology, the shares remain overvalue d that was a sort of technical issue, because they didn't have an analyst for a period of time tesla, what a run. i don't know if any others stand out for you? >> i think l brands is very interesting. to have a double upgrade is rare and you have an activist in this stock. it's still down 25% from the highs, so i kind of think this is interesting there's a lot they can do. real estate rationalization, inventory controls, cost controls, maybe they even

separate the two businesses. i actually like this idea. up next sara joins us from davos with a big guest in the media space. >> reporter: coming up why "new york times" is partnering with facebook but not apple on news the conversation with ceo mark thompson - [narrator] at southern new hampshire university, we're committed to making college more affordable. that's why we're keeping our tuition the same through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu.

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york times" subscribers hit an

all-time high. sara eisen sat down with "new york times" ceo in davos >> reporter: cyber-growth has been a good story, but digital advertising was a little soft last quarter, so what is going on >> a year earlier, we were in the third and fourth quarters of 2018, we saw ko lossal growth, high teens growth. in the fourth quarter of 2019 -- of 2018, we saw 13% growth so it's tough comps. it's true, though, that the moment we're seeing our subscription model growing faster when there's a choice between do we optimize for the subscription model, do we optimize for the advertising model, there are many extra veiling, but for example in this quarter we're

taking opening market program tick advertising away from our apps, this kind of did tends to slow load time and makes that experience not quite as smooth, so we're seeing a bit for -- >> i want to talk about disruption, you're spreading your bets digitally, talking tv shows, working on podcasts how do you think about the multimedia strategy? >> one way we think about it, we have a machine which we pour money into, and flushlly no news organizations, we're spending money on that. we want to make sure that's made available to audiences in lots of different ways and to different audiences. that's essential a -- >> did it make money >> yes, it makes money there's a couple at the moments advertising slots, it makes tens of millions a year

because it's such an attractive audience, a heavily engaged significant audience brands love that over time, we may have our own subscription we already market or subscriptions on it, but maybe it's going to roll, because it has so many loyal users. i think that's a good example of experimenting, a new way of doing something classic, finding a new audience and new retch stream. facebook, friend or foe? >> i think a paying partner. we struck a deal over the new news tab, where we've got a guaranteed fee for the presence in that product over a number of years, and a significant amount of money, which will help pay for the journalism -- >> why do that and stay away from appear 8, for instance? >> i want to say we look at each platform differently

the dynamics are very different. what we gets from each platform is different what we deliver to them in terms of value is different. the facebook deal is an example. we believe what we have is valuable, but what we do is closer to a "game of thrones"" or a "crown" if you like we think our brand is valuable to these platforms, over time with each platform, we'll make sure we're getting fairly recomp penced, and the platforms that get so much value are paying their fair share. what's going to happen to the newspaper industry it's not new, to talk about declining growth of physical newspapers, but it's picked up. >> we have advantages, some very few other newspaper groups have got, but i also want to said significantly broadcast and

cable tv journalism is increasingly -- the point is it's not as far advanced, but the fundamental transfer of dollars away from different forms of linear advertising has by no means finished television is the next medium on the block, with exactly the same the disrupted smartphone based competitors, and often, legacy players, currently legacy tv players as well, moving a bit slowly, given the scale of the challenge, so i'm afraid at the moment i think it looks pretty tough, but we'll be survivors. there will be some survivors i believe the times will be a survivor it's very tough. i do fear, particularly at the state level, or even the national level, in europe, for example, you start getting loss of plurality, fewer voices,

fewer perspectives, because the economics are so bad we've got just under 30 minutes left of trade at the moment we're near the session highs, which means essential flat here are the keys today. with safe haven utilities setting a record high. bond yields tanks amid fears of the coronavirus, and mixed bag for earnings southwest and american getting a boost. we'll have more on that big travelers move later time for our cnbc news update with sue herera. hello, everybody here's what's happening at this hour state department officials say there's been no increase in isis activity, and no increase in violence since the killing of iran's top military commander

cason soleimani. they're continues the operation against the remnants of dash in the northeast. another on dust storm hit australia, enveloping new south wales in thick brown dust. an eyewitness filmed it, saying it was dense and appeared to be spreading toward the east. jim lehrer has died. he served as anchor of "newshour" for 38 years. he moderated 12 presidential debates, more than any other person he was 85 years old. and a fantastic journal it's that is the news update at this hour

guys, back downtown to you we'll see you next hour. up next goalman sax says coronavirus fears could have a big impact on the price of oil we'll break it down. as we head to break, treasury yields are pulling back today as investors look for safety the ten-year currently yields about 1.73%. "closing bell" will be right back before we talk about tax-smart investing, what's new? -audrey's expecting... -twins! ♪ we'd be closer to the twins. change in plans. at fidelity, a change in plans is always part of the plan.

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. 24 minutes left for trading. over to mike santoli hello, mike. >> we're going to take a bit of a status check here's a one-year chart of the s&p 500 along with the 20-did i moving average 689 very short term this was from a few hours ago before the intraday comeback we're basically less than half a percent off the record highs i brought in the 20-day in here, because a lot of people think we're due for some kind of pause

generally that's been pretty healthy. , on the way up, that was a strong, brought rally that would be no big deal around 31.50 or so that brought -- and it would still by in the zone of normally, noticy pullback. here's the sentiment check we keep pointing out that the sentiment is pretty much celebrated a new high for this -- close to the lows that spread is getting wide, but

it doesn't necessarily mean anything it certainly has the makings for a negative bryce, upending this positive story in the markets. january 2018 is still the standard for over-bullishness. >> do people care more about the shorter term or longer term? >> they care more about the longer-term ones, but obviously if you have a bit of a hiccup if all you did, still heading into it on a technically basis, there's not much to fault this rally right now just yet. >> mike, thanks so much. stephanie, do you have any concern? >> i think even though there's a lot of bulls out there, it's like a hated rally everybody is calling for a

pullback, i don't know, i think it comes back to earnings, and i think we're off to a good start. don't let the headline so far fool you the underlying commentary so far has pretty good. >> you think we're all too cynical and skeptical? >> yes, i do with 21 minutes left at session highs, with very, very slight gains as we want 21 minutes left. the last-chance trade when we kembaic. and earnings after the bell from intel key things to watch, coming up on "closing bell." dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein,

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welcome back the major averages, as you can see, essential flat. nasdaq -- but we are around session highs. we did start at the low of the day down 219 points, now down

only 40 points there's a look at the dow gainers. at the bottom, travelers down 5 her, nike and merck. it's 3:42, what's your last chance trade fortnet. it's estimated that companies in general will spend a trillion a year just trying to combat this. fo fortinet is ganging momentum in market share against the likes of checkpoint and cisco. i think it's not cheap, 21 times adjusted free cash flow, but that's in line with the growth rate i like the trend i think it's going to continue.

>> i did a lot of reporting about the cyberattacks what makes this more if i recall that is some of the competitors? >> i think they all have their ne niches, right? they can actually gain share within a customer, so a customer won't have to go one-stop shop, but they can offer quite a bit it's also not very well liked. >> all right a trade to 21 times free cash flow is liked by quite a lot of people. >> by the buy set. next uninterrupted coverage when we take you inside the market zone. you can always watch or listen to you live on the go on the cnbc app "closing bell" will be right back le,

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12 minutes left in the trading day. we're not in the "closing bell" market zone coverage of all action mike santoli is to break down the krusht notes, and we have stiff any link here as well today. let's kick things off with general electric, the to be getting an updre seema mody has that call. >> the analysts say that story has shift from one of financial discretion to budding turnaround the company is making progress,

and as it relates to the grounding of the 737 max and the impact on ge, which of course makes that engine, analysts say the concern is overblown or perhaps the risk is limited. we're seeing shares of ge up over 3% today, now up over 30% the past three months. there was a wide spectrum of price targets. pressure is really on to see if the company can deliver. back to you. seema, thank you so much mike, clearly it got down to a six handle at one point. this is where it really has to deliver the numbers. >> without a doubt it's not that much after growth story. the risk is reduced. it seems like cash flow has a decent path and some financial discipline is part of the story now as well, but the stock -- i say above 12 1/2 or something like that, that's where you're going to see if we're out of

sort of this convalescens c quali. >> i do own it, but it's acted well the last couple months. this is a turnaround and bet on the ceo really stabilizing power gen. free cash flow probably does not improve until 2021, but i get it, i'm in there. >> patience is a advisovirtue, ? travelers, the insurer had a slew of positive news, combined ratio improved significantly that is the company brought it more money from premiums man

paid out in expenses 2018 was the year we saw the california wide fires. on the earnings call, travelers suggested improvements to the margins in commercial insurance won't happen until the second quarter. that was later than the street expected the significant portion of the call was spend on a tough litigation environment, in turn premiums, we hear it repeatedly, they call it tort inflation. they're seeing it in the commercial auto business, but across the business. they say they're forced to hike the premiums the fact they're keeping customers, it means it's a problem for all the insurers as well >> in terms of the broader sector, much of an impact today? >> no, travelers is a big component on the dow the dow is recovering a big, but travelers is still off by more than 5% at this point. the insiders i spoke to are

rather surprised at the down beat reaction. bottom of the dow today weighs on the index. we've got just eight minutes into the session one analyst note has netflix shares jumping today let's get to julia boorstin. >> netflix shares are now up 7%, saying that comcast warning of subscriber losses will benefit netflix. stifel writing that comcast is a very well-run -- netflix is also on well-run company, but without the burden of a legacy business to protect it. guys, back over to you

julia, thanks so much for that clearly we have a nice rebound it's also stark that it's moving in the op sid direction which are reacting to the down side. >> this was the day when people decided to refocus on the long-temple trend of court cutting, loss of video subs. comcast, at&t is a much worse story on that front, but it didn't spill over. people decides we're going to look on the negative side. i will say netflix has done okay in the wake of a good quarter and guidance cut right now i think the stock has settled out right there. >> where do you stand on the balance between the old and the new with this quarter? >> i mean comcast is a 15 times forward. they have a diverse business mix, right netflix is a great story, but the competition is fierce. i can't pay almost 60 times

earnings for something where i don't see operating leverage for a long time. the three of us all love the management team. no complaints. >> we hope they're watching. >> wonderful management. we have six minutes left of the session. we'll see mark benioff sitting down with sara eisen earlier today. >> i think they've made more positive changes even youtube has made 50 major policy changes i think these ceos of major tech companies -- i'm one of them -- have to look at the values and decide you have they's maizing platforms. if business is really the platform for change, what are you doing with it? are you doing it to make the world bev or just to make money? >> and sara's interview there with mark benioff.

it's worth checking out. it's not new for him to be overtly critical of facebook it's not incremental in that sense. >> yeah, he's certainly in the right place in terms of talking about this idea in terms of a new capitalism i don't think it's a new message from him it's unclear exactly how that kind of reflects upon what's going to happen next in the industry right now i don't think ear seeing a lot of the very tangible fears of changes and business model practices in the market right now. it seems like that's a story that's kind of receded a bit. after the bell, we get he earnings results from intel. josh lipton has that preview >> contessa, the street expects eps of 1.25, suggesting that 3% top-line bump. what are the near-term tailwinds for analysts would point to a

resilient market, but matt ramsey points owl challenges, too, knowing -- ramsey saying that provides an opportunity for small arrivals to capitalize and gain share guys, back to you. >> josh, thanks so much. stef, i forget where you stand on intel >> i'm not involved, but i do like the news about the chairman leaving, with an independent chair now. that checks the esg box, too, right? it's really about the management they haven't had a good executing plan, so i think that's a step in the right direction. >> yeah, kind of a big

improvement. if you look at the new york stock exchange advances versus declines, now positive this was well in negative territory right at the open. i think there's twice as many stocks as there are down from the opening print today. dow transports just narrows that gap a bit. it makes sense to look at the volatility index it's still above 13. really nothing to say here, except it seems as if a floor is probably in for this stretch of the market rally, somewhere around 12. a lot of people are very twitchy as we get towards political season

and we should point out at well, the slight recovery we've got into the close puts the nasdaq at about a record close. 9,400 the level, which is about a point into record territory, the dow, of course, still slightly negative. >> two minutes left to go. rick hi, courtney october first, we're at 3 1/2 month closing lows today markets really were pit, just like equities were early, and like equities, they rebounded. we cut our basis point losses in half, they're now only down three basis points lowest, flattest, and bertha, yesterday still stands as the all-time intraday high, but today we'll get that historic

high close. >> citrex, also a buyback helping to bring it to an all-time high. we have seen strength in mid caps and small caps, breaking a three-session losing street. the biggest losers are the chinese, travel and gaming leisure related stocks, tripped.com the worst performer as the coronavirus has people not traveling in china over to bop. >> declares that it's not time to declare a national or international emergency, really turning the market around. exxon mobil, a 52-week low a lot of damage elsewhere in

metal stocks, freeport mac mcmoran has been down. and u.s. steel with a 52-week low. real damage out there. there's the closing bell dow jones industrial average is trying to get into positive territory. it looks like it's not going to make it. s&p 500 up four points welcome to "closing bell." i'm wilfred frost. >> i'm contessa brewer in for sara eisen, along with mike santoli. the nasdaq closing in record territory, once again only 0.2 of a percent of gains. it was about 10 or 12 points, the s&p 500 was up only by ten basis points, about three points away from the recent record.

industrials real estate and technology led the charge higher as you can tell, of course from the nasdaq performance, just negative, but only by a couple points >> we'll bring you the numbers as soon as they cross. joining us to talk about it is chris fizee, and still with us, stephanie link, cnbc contributor. mike, this coronavirus scare is having an impact across several sectors, but the s&p is on of positive they're looking for a global cyclical story, just because of the travel restrictions. the stock market was looking for the bond market for a cue on whether to worry they bottomed, lifted a bit. again around 1:00 p.m., we saw another up tick in yields, and the stock market got back toward

the flatline to me it's all about do we need to worry about the global macro story slipping a bit i don't think we necessarily do, the big growth stock leaders did not budge today. >> we'll dig into those numbers in just a moment chris, i think you're a believer in this momentum rally that we've had. when you see a couple days of declines, the dow three days in a row, does that concern you >> no, actually we're hoping for a bit of a pause here. that is a sign of a market that climbs the wall of worry, and that doesn't necessarily continue to grow, but it shows itself every once in a while as we've seen in the last few days.

the key will be the foundation is this a profit upswing is this an economic back to trend up swings? is this a mini expansion our team has done a lot of work on whether or not we've hit terminal velocity. a fancy phrase, and we just don't see that last year's multiple expansion was in anticipation of a few of the big elephants leaving the room the one that people still question from time to time is whether or not this economic recovery story is gathering momentum that leads to a profit upswing. we have the intel numbers. >> wilf, intel reporten eps of 1.52 versus expectations of 1.2 -- intel also announcing a 5% different increase. guidance better than expected.

they're saying look for 1.30 on about 19 billion those are better than expected for 2020, that was a big bogey for investors here also better than expected, just turning quickly to the segment dcg coming in at 7.2 billion, and ccg, or pc-centric business 10 billion the conference call started at 5:00, and we'll be on it for you guys back to you. >> a nice little beat for intel. the ceo will be on "squawk alley" tomorrow. the stock up is about 4.8% in after-hours trade mike, diving into it, the today data centering is the 372 billion. >> it's sort of beating in the right places going into it i would have been

nervous, frankly that the stock had been a bit too strong heading into it. it seems ago if you have the big defensive names that's been hot, that maybe the rally is getting a little over the hill not the case obviously the market was significant out that it was a very good quarter. >> it lagged last year. >> that's what i mean. >> when you have a catch-up move, you get earnings upsite, and this actually should be pretty positive read-through for broadcom that stock has also lagged that's the one i own. >> clearly it's been the big cap growth monsters that have help the market of late ibm, intel as well >> obviously this is a market that's in a mood to be generous at this point. yes, i do think you see a bit of room ibm is a different category. just very, very cheap. the question is, is it truly

getting some momentum. intel looks like it's in the right places, and the semis in general have had no letup. we're still tacking about year-on lever year declines, yet the market is just looking right ahead. chris, how are you positioned in the tech space >> you know, we still have it as one of the more favorite sectors out there. look for factor that is drive the market some of the companies that very reported recently are giving us the feel that yes, overseas growth has bottomed in many places the u.s. is going back to trend. we're leaving that period of many called it earnings recession period, where only stock buybacks were responsible. we're heading back into the what have you done for he lately type of period? after earnings you'll likely see a paw ause and then a restart mostly dominated by industrials, half of tech, if you will,

consumer discretionary and the financials. >> mike, what do you think of this whole demand story and the other company that is we might see following suit >> it seems as if, you're talking about -- if you're worried about a cloud investment slowdown, this works against that theme i think people are very taken by the cell phone cycle right now i don't think everyone will kind of look down their nose at these results just yet.

current valuations, dating back to 1971 it's very specific that's the only measure. and by that measure it uses the model on bond yields as the forward, looking a handy capping of where yields are going to be. the market isn't as nearly as expensive as it looks now. that's my bet. my bet is we'll go through the year and we're going to start to see an acceleration in earnings. >> chris, when you factor in the broader market valuations, how much up side is there in your eyes is it much more muted this year? >> yes, there's two arguments

here, because of the large gains, and stephanie kind of hit it, you need that growth surprise it looks great relative to bond yeels, and now you need that earnings base to surprise you. you're starting to see in some of these guidance somewhere between the fair value case, which is still 3300, and the 3600 case, which is the meltup if you average 34.50 through the year, that's 5% on a median basis, but you still need to rise above that. >> and then obviously the election concerns start to center themselves, and the real earnings momentum should happen in the third and fourth quarter when the interest rates cuts, the expansion of the balance sheet and overseas bottoming of growth early this year starts to filter through. >> chris, thanks for joining us

and stephanie, thank you for being with us the first full hour. we'll dive into intel earnings in more details plus goldman's head of energy research coulexaid pln why several could get hit by the coronavirus. we'll return in 90 seconds. has no penalties or advisory fee. and we can monitor to see that we're on track. like schwab intelligent income. schwab! introducing schwab intelligent income. a simple, modern way to pay yourself from your portfolio. oh, that's cool... i mean, we don't have that. schwab. a modern approach to wealth management.

they came back very aggressively in the fourth quarter here we heard that microsoft was actually one of those buyers that strongly underpinned this data center result >> chris, what is your take? >> similar, but also in the general market for pcs, too. so you're seeing widespread strength t.i. yesterday even mentioned yesterday that they think it's bottom, so you could be heading into an up swing overjaw >> what does this mean for

intel's share of the market? what do you think? >> this to me is more of a financial report and more to what's going on right now. not really talking about down the road a year or two amd is aggressively taking share, yes. >> do you think that changes with the leadership change >> that's a tough one. intel gets a lot of flack in terms of leadership, in terms of culture, and who can change it, but it's unclear whether a change in leadership at this point is going to caught that directly. >> what's your outlook for 2020. the guidance there was pretty good the guidance is good i think you'll see a rebound, but i think you're coming to the end of moore's life, the ten decemb i don't know that leadership at intel can actually change the

physics involved with what they're doing. they're going to have to be more of a product company and rely less on the next node. and until then, amd will probably continue to take a share. >> chris, obviously intel kind of the cheapest big name in the group. the overall sector, though, we're a year into this market saying we have a comeback on our hands. now we have the numbers that show that. how much more is left in the stock. >> that is the trillion dollar question for these guys essential. we've had massive multiple expansion that took place all through the semiconduct or, so you had earnings coming down, multiples coming up. by our estimation we've had already baked into two years of pretty decent up cycles here

what's your take >> i agree we've had a bullian market earnings estimates should start rising, and then a lot will depending on what happens in the presidential election. and the economy will continuet improve, you may not get as much compression as people expect, so the stock could rally. on the other hand, if we think things will get nasty, you probably would let earnings rise, and the stocks will start stagnating a bit. >> back to one of your earlier points, you're hearing that microsoft was a big buyer. what does that tell but microsoft itself >> it would imply, maybe not the quarter ahead, but it would imply they need to put on new infrastructure, spend new cap ex for what they sees growth in azure, for example, is not stopping anytime soon. >> thank you both very much.

still to come, we'll break down the charts to explain why the tech trade is the real driving force behind the market. >> later, find out why goldman sachs is warning that the coronavirus impact could take a toll in china. you can always join us on the cnbc app on the go we hope you do "closing bell" will be right back - at southern new hampshire university, we believe in education built for all people. - [woman] snhu was the best experience of my life. - [man] without snhu, i wouldn't be the leader i am today. - [woman] i graduated high school 19 years ago. i still finished. - [man] in the military, you feel that sense of accomplishment. that's what snhu is. - you will march from this arena and say to the world.. i did it. - [woman] you did it. i love you. - [graduate] i love you too.

mike santoli is standing by with his second dashboard of the day. the steady consumer is usually top of the list, about you in the last year, the consumer has not really been a big contributor to the up side of the overall market this is the tech sector against consumers discretionary. what you see, especially since about last summer, the consumers discretionary has not didn't it's really been technology drives, like apple, microsoft, semiconductors, that's a bullish story. it is cyclical to some degree as

well, but not necessarily a broad celebration of the strength within discretionary home builders versus amazing. but here's something i point to once in a while. essential it's a cyclicals over defensive trade. one this one etf, long cyclical sectors, so this is a direct play on cyclicals beating defenses this looks great, right? it's in a strong updre it tells you the markets are in for a -- half of this long position if experiments technology as cyclical it's really hard to get out of big tech as a story line if you want to have an explanation for why in market is working so well

most of them are actually down now. and health care had a rally last year, but hasn't hell on to the momentum necessarily we have news on opioids. meg has the details. >> the company, of course, was caught up in the scandal in bribing doctors to prescribe the fentanyl spray. , john kapur, 66 months, back over to you. >> there's been a lot of speculation, and even cynicism about the fact they were getting slapped with fines

sovereign the start of a trend but to prove the executives themselves were at fault is a different chain to prove where they got caught in the cross -- hairs is -- it's not necessarily the start of more to come >>. all right, meg, thanks up. next, goldman sachs, explaining why oil prices could be hurt by the coronavirus in china david solomon setting a new standard by insisting they've got to have a diverse board. details are coming up. ♪ limu emu & doug

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the s&p 500 up a tenth of a% just the dow just barely in the red for another day in the red looking at today's best performing s&p 500 sectors as well you can see industrials, real estate, utilities, best performing the lag guards here time for a cnbc news update with sue herera. hi, sue. >> hello, everyone here's what's happen, the

actress annabellea, in a quivering voice, she told the injury how weinstein barged in the apartment and allegedly rei raped her. the most serious outbreak of locusts is spreading across east africa >> the desert locust invasion is the worst we have seen in ethiopia and somalia in 25 years, and the worst we've seen in kenya in over 70 years. the company behind the popular fico credit score is rolling out the newest model it will start incomps debt levels into the score. the change means the more debt you carry, the harsher you will be penalized if you make a late

payment. by forewarned. that is the news update this hour back to you. sue, thanks so much. the senate impeachment trial of president trump continued today with democrats making the case that the president abused his power. ylan mui has the new details. >> reporter: the house managers are focusing on the how the president allegedly abused his power by putting his own political interests ahead of those of the country they contrasted his phone call with ukraine to that of previous presidents both republicans and democrats, other heads of state and raised questions about the timing of the president's request for ukraine to look into burisma. >> senators, it's obvious. president trump wanted to-vice president biden's candidacy and help himself politically he pushed for an investigation in 2019, because that's when it would be valuable to him

>> reporter: republicans said they were actually surprised that the bidens were talked about so much on the floor today. they said that's all the more reason that one of the bidens should come testify. back over to you. wow, ylan, thank you. crude oil taking a dip in today's session. goldman sakes put out a note say the coronavirus should shave $3 from oil prices. damance -- goldman sachs, head of energy research joins us now. how do you get there the keep -- the best press accident we have is a sars epidemic in 2003 what we looked at is what would that do to today's oil market. keep in mind asia went from 28% to 42% demand, so we take that precedent, scale it up and end up with this 300 barrels a day

impact on demand, and in the end our modeling, that's a $3 impact on oil prices. obviously this isn't as bigger a restriction as the sars virus ended up being >> that's the key uncertainty, how virulent this virus will be, and the policy response itself an aggressive up-front policy response may shorten the extend of the outbreak itself against, because asia has become such an important source of oil demand, it still would have an impact overall i think the key really is the uncertainty around it. >> does it only have a negative impact, because asia is a predominant -- it's always in demand, but not necessarily a big supply could it possibly have the op sips impact? >> potentially it could have an impact, though oil production is

not labor intensive, relatively automated or isolated, so really here we're focusing on the demand risk. i think going back to the sars epidemic, what was key is the uncertainty exacerbated the move in oil prices. oil got hit more than gdp, but the 20% decline was far in excess of the -- >> and what about supply in where do think he stands for supply is it possible that the producers would just cut back more >> that's a very good point, right? if you look at opec's behavior, they're cutting inpull and even if you look at u.s. producers, thee very disciplined. they would likely pare back activity further

so, i mean, if that's essential the magnitude of the potential impact, is it already in the market >> that would be the math. it has effectively priced sars, anything beyond that would have to be on evidence that this is spreading even further. >> why do you think that oil is getting hit? >> it goes back to the transportation element look at the policy response. it's a transportation ban. direct impact on air travel, gasoline demand. back to sars, the hit on transportation was much larger than the actual lit on gdp in the end. >> thank you for joining us. >> thank you very much. david solomon has a new demand for companies that are looking to go public >> we're not going to take the company public unless there's a diverse -- >> we'll look at hose those new rules could cause goldman sachs to miss out on some high-profile

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mae headlines from davos, announcing a new policy, tying

support for ipos, with diversity on the ipos' boards. >> we're not going to take a company public unless there's at least one diverse board candidate, and we're going to move to requesting two we realize this is a small step, but a step in the direction of saying we think this is right. >> this was discussing the we complain works ipo and the problems for most of the process it would an all-male board. >> moving forward, perhaps, the lessons learned from this, whether it was before it as well, which had corporate governance issue, do you think that you guys across the board in the investment banking space should work earlier with these companies to get rid of those corporate governance question

marks so they don't come up again? >> our job is not to be the rulemaker for what the public markets accept or don't accept in terms of governance, value, et cetera. it is our job to suggest what we think is best for investors and markets broadly. ultimately the market makes judgmentses around they things >> he said later in the interview with the "squawk box" team, this move wasn't specifically related to wework, but it's hard not to think all the uproar had some kind of influence on it. some might criticize, and he acknowledged this is only a small step albeit a significant one, i guess the other issue i would have, there were lots of other bad corporate governance issues that were probably worse than this, which at least today

goldman sachs isn't acknowledging formally in terms of the ongoing policy. that said, that was quite specific to wework whereas the lack of female representation is more common, and the first to do this in a -- >> whether there's a woman on the board or a member of the minority group, but also diversity of thought matters as we well. >> it does show that having independent directors who can come at a problem with a, but, of course, goldman's new rules could be very problematic for high-profile unicorns in silicon valley, and diedre has more on that >> contessa, that's a lot of

studies that say a more diverse board has take inns that cart. it was founded -- it has just five directors none of the women, none of them independent. it's was juul at $19 billion, but according to pitch book, it is also all made others include palinfehr, flexport and going up-backed magic leap they raise important questions about the pipeline sol month put it, goldman could lose out on business, but in the longer term, it will yield better performance guys >> the interesting things, and i'm not trying to downplay the positivity of this announcement,

but my own take is i doubt it will lead them to lose much business, as solomon acknowledged himself, they have a broad network of people that they can introduce to potentially add to the board and they work with these company from a very early stage. just going back to that interview in october that's the builders and innovators conference on, where they start to build relationships the positive part is they start encouraging clients to make these changes early on >> it's a good point, wilf i think many people out here would argue it's not early enough, and i've seen a few companies add a woman to the board just before they ready to get their prospectus out the door i think the real problem is series a, series b, even sooner have the women representation. there's a ton of statistics that

show that female founders aren't get as many dollars. it still accounts for less than 3% of the total. there's a lot of work to do at the earliest levels here. >> if you only want a ceo or cfo on your board, you're going to have moss problems finding the diverse candidates, because there isn't the pool available that's what i mean about diversity of thought you may have to go outside of what's been traditional. by the way, remember i did that story about the d & o insurance costs going up these unicorns are the companies having trouble getting that insurance to attract quality directors. >> reporter: contessa, what you're pointing to as well is independent directors. these are important, too because they're able to get out of the company, out of their investments and have the diversity of thought that perhaps sets them up for the longer term and better performance. >> the other way that would make sure no bank loses business is if all of the big banks matched

the pledge, and then everyone, if they have to go to market with big investors running it, they'll have to. the buy said is also relevant. so much more money is run, that it makes soldiers for the banks to start that. >> as well, lots of early-stage companies are well before -- lots of listed companies don't, either way too many don't have sufficient representation, if all companies that come to market as first ipo companies have representation, that will start to improve the metrics, which has such poor metrics. >> we've got to get to -- >> sorry about that. we have an earnings alert here eric has the details.

>> down 4% by beating on the top and bottom lines, issuing strong guidance for the second quarter. though net revenue was down 8% from the year-ago quarter, the stock is up over 50%, certainly a company to keep a close eye on back to you. >> there you're seeing it down 3.3% eric, thanks still to come, sara has more from the world economic forum. >> reporter: coming up on "closing bell", tracess and activist bianca is here with a message. that's next on "closing bell." o. o. the more you push yourself, the more confident you're going to get. and the more confidence you have, the more people are going to listen to you. especially as a woman in the industry. you need to actually just make sure that you push it. ♪ ♪ cisco. the bridge to possible.

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welcome back, our own sara eisen is in davos, and she sat down with bianca chopra. >> first time attendees? >> yes you are here in support of global citizen, with a message to billionaires. >> not just billionaires, but high-worth individuals it's interested in 2015, 193 countries came together and made the sustain annual development goals, which is all of us as a world coming together saying we have to e -- eradicate -- five

years in, we're offtrack it takes major strides to achieve the goals from 2015. what the governments have promised has not happened at the scale at which it should happen. the only way to do it is ask the richest in the world, to donate massively. that's the only way to do it. >> hose did you get involved i know you worked with unicef, and how do you balance your work in hollywood. >> philanthropy habs around important part of my 4r50i6 since i started in the business almost 20 years ago. i realized i come from india, a country which has seen extreme poverty and extreme wealth live hand in handled and there's desensitizization, my parents being physicians, i learned quickly that you can make a big difference i have a privilege, because i have a home, i have the ability

to feed myself and my family i have the ability to have an education and an opinion that gives me a privilege. just like that in the world as it is, the privileged countries that have the ability to take care of that people have the responsibility to take care of the ones who don't have that. >> reporter: there are a lot of big leaders around the world bill and melinda gates, of course, and there are today in fact a list of "forbes" list of 25 biggest givers that came out, and it was incredible to see so many names in there. people who have contributed so much from their individual wealth into solving the world's issues i feel like this is just me on behalf of global citizen as an ambassador of the world, as a citizen of the world, just

imploring to people who have the ability to move things to do it. >> reporter: some people -- >> trust me it's real cold. >> reporter: but they make fun of flying on the private jets do -- >> i flew. there's a system for everybody the way i see it is i'm doing something. are you? it's very easy to turn around. yes, there are pros and cons, vices and virtues, but i think it's important to keep the conversation going and not be distracted by anything else, except for the fact that there's an urgent need to make a change, and whoever and however that is possible, i'm going to be a part of that movement. >> priyanka chopra jonas there we just got the pay numbers

for the jpmorgan top brass for the year just pass it's 31.5 million in total compensation it's up fractionally from the year before. james gorman actually got a paycut, $28 million compared to james ondimon. that was down. it was a record year in terms of performance, but there were some layoffs at the back end of the year dimon's 31.5 million up 1.6%, stock was that up 43%. so that's sort of the going rate for the top brass. the other leaders like deign

pinot to be about 23, 24 million, all of them seeing up a couple%, seeing pay rises by 2%. jpmorgan stock is flat after market up next, a leading economic indicator, coming to indicator pointing to slowing economic growth in the united ndut i fi of it's a reason for concern, straight ahead.

we have a market flash on broad cromme eric chemy has the details. >> broadcom announcing two separate multiyear agreements with apple the. wireless components. broadcom announcing it could amount to $15well in revenue some traders note that could add pressure to skyworks despite the earnings beat it's down >> thanks for that eric. lets get to mike for the final install amount of the dashboard. >> a bit of a glimpse of macropicture this morning a reading on economic indicators. flattish but it's below the highs than that's key on the year over year basis. this index is down sult slightly as you can see it's flattened out here in the last year. why does it matter it always deaccelerates and curls down before the recession.

these lines are recession. every time we had a year over year decline it's been a recession in a year's time except one in the mid-90s. you did have a 19951996 slowdown it was just a pause, a stutter step, soft landing whatever you want to call it. then you resume higher that's the hope. but be on alert. every month you want to see whether this changes trend and regains altitude. >> mike, dpraet stuff. thank you. up next the wall street buzz find out why you may soon see fewer rvseice animals on airline fewer rvseice animals on airline flights. but great minds are driven to seek out the complex. they see what others don't, from an angle others won't take. they learn that embracing those challenges is what sets them apart. i am justin rose, and we are morgan stanley.

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welcome back time for the buzz on wall street first up, lay office at 23 and me the genetic company cutting 100 kpleeso employees on the back of declining sales. the ceo telling cnbc.com she has been surprised by the slowdown and customer privacy could be a factor along with fierce of economic downturn. you can see the full story on dot-com. >> i would say the privacy is more of a hindrance. than people worry the $150 that they're pay something a problem. >> ancestry is there

and maybe they got to the point where early adopters got there. >> maybe the stories about you and your cousin linked on online the department of transportation proposes new rules ron types of pets that qualify as service animals on flights it's limiting the term to dogs trained to perform tasks for the benefit of a person with a disability emotional support animals will not be considered service animals after airlines complained about the number of passenger skirting rules to avoid pays fees for pets passengers have tried everything from peacocks to miniature horses to monkeys on flights for support according to the "new york times." that proposal now sberps the 60-day public comment period i have a dog i fly with. i pay for her often more than my children and i have to take up my carry on space to put her in i don't like it. here is my public comment, the airlines should do away with pet

fees let them on. >> i disagree. i have to say i think that's fair they'll take up extra space. and. >> no they take up my space. i don't get to carry my bags on because my dog is under there. >> but you paid for that-on pay for it. >> and i have to pay the privilege. >> nasa slight. >> the dog gives you more emotional support than your children. >> for sure she does. >> and long-term costs less, too. wendy's taking a shot at mcdonald's on twitter ever a a user posted a photo of a mcdonald's van and asked the wendy's what would you call this. >> wendy's wrote back is it a garbage truck. >> people are trained to prompt the wendy's account to have a wise remark. >> right. >> because they have the reputation as being a little bit edgy. >> do you think grandma is not buying a frosty. >> could be they are getting the mcdonald's mcflurry. >> the mcdonald's truck is too

zoomed in. >> it's hard to see what it was a bit. >> now you're criticizing some guy's photography. >> unless you're a good 10 to 15 meters back you just think it's a black andual stripe van. >> on that note. >> on that note out of time that does it for "closing bell." >> "fast money" begins right now. yes it does live from the nasdaq market site over looking new york's time square this is "fast money. i'm brian sullivan in for melissa lee once again traders are tim speerm karen finerman, dan nathan guy adami the coronavirus spreads. the w.h.o. meeting again we hit up the cnbc. >> and big money impact. en the big winner on the session netflix nearly topping the tape. we'll tell what you sent investors streaming in electrified call, nothing to do with tesla a big upgrade that caught our attention today. welcome everybody, we get to that and more come