or 7 not everybody has the latest and greatest >> it's all so complicated just pay your bills. stay up to date as much as you can. ted rossman with creditcards.com, thank you for joining us today. >> thank you. >> that does it for "the exchange." i'm going to join seema mody now on "power lunch," which starts right about now. i'll give you three extra seconds, seema. >> bill, looking forward to it we will see you in a moment. good morning, everyone, i'm seema mody here's what's coming up on "power lunch." more than 900 cases of the krona virsion confirmed worldwide and two of those cases of coronavirus are here in the united states. one expert says we are in an age of epidemics he'll tell us how bad it could potentially get. plus, big tech stocks preparing for earnings next week, facebook, microsoft, amazon, the name wall street is most worried about. and boeing at lows of the day, the stock falling as the company says it may make additional production cuts of the 787 dreamliner we are also awaiting the takeoff

of the test flight for the new 77x, which could happen any minute we will bring you the details. "power lunch" starts right now and take a look at the markets right now. stocks at the lows of the session. the dow is down more than 200 points and on track for its worst week since august. coronavirus fears and boeing's move weighing heavily on the markets. bill >> all right, seema, come on over for more on what's taking the stock market down this hour, let's get to bob pisani at the new york stock exchange. hello, robert. >> hello, bill it good to see you, as always tough to go long in the weekend. here's the s&p 500, just a slow drift down here, not heavy volume, kind of like a buyer strike nobody wants to buy going into the weekend. take a look at some of these stocks associated with the coronavirus. you've got the cruise names out there -- las vegas sands, freeport-mcmoran, the metals are getting hit, oil stocks getting hit, cruise lines, airlines, all weak today you want to know what my opinion

is, the key to the market? it's apple you hide out in these big tech stocks apple's up 9% for the year, look, still up today that stock starts dipping down, then we've got a little bit bigger problem for the markets so, where are we right now it's kind of like there's two markets right now. one is the tech market, growth everybody's hiding out in one of those. and the other is the coronavirus market where people are a lot more cautious. so, one good, one not so much. bottom line, folks, really tough to go alolong into the weekend right now. guys, back to you. >> certainly is. bob pisani, thank you. now for the latest on the wuhan virus, the cdc confirming the second case of the virus here in the united states. the patient is in chicago. she traveled to wuhan in december and returned home last week now, that case brings a total worldwide infected to 937, the large majority in china. 26 deaths have resulted from the virus. so let's bring in meg tirrell for the latest meg? >> hey, seema. health officials suspect there will be more cases here in the united states after they

confirmed that second one just this morning 63 cases have been under investigation by the cdc from 22 states, and in addition to the two confirmed positive here, they found 11 to be negative for the virus. now, health researchers say they're still learning about the nature of the virus. while it's in the same family of coronaviruss as sars and mrs, cdc officials are hesitant to make comparisons in terms of severity or its speed of spread. right now they believe the immediate risk to the u.s. public is low, though they note that the situation is evolving meanwhile, case counts keep rising in china with the global total reaching 937 with confirmed deaths at 26 and cases in nearby countries are also mounting and within china, more cities now having travel restricted, covering a total, guys, of 46 million people. >> somebody on twitter asked a pretty good question it's very, very basic, though. a lot more people here in the u.s. have the flu, the good, old-fashioned flu. why are we obsessing over 26 people that have the coronavirus here in the united states? >> you're asking a question that

bedevils the public health community. we underestimate the severity of the flu simply because we're used to it it comes around every season and for most people who are healthy and hardy, it's just a real pain. not to underestimate how terrible it is, but, then, of course, it does kill a lot of people who are older, infirmed or have moshtities, so flu is extremely dangerous, but what people point to in the public health community in terms of the flu is a new pandemic flu, a strain that we have nothing against, harkening back to 1918. >> stay there, because we want to talk about that our next guest did warn about a coronavirus pandemic just three months ago he staged a simulation which showed that it could kill -- this is just the simulation -- it could kill 65 million people within 18 months it found that it would trigger a global financial crisis with the stock market maybe falling by as much as 20% and global gdp plunging by about 11%. dr. eric toner is that scientist, senior scientist at

the john hopkins bloomberg school of public health. good to see you, doctor. thanks for joining us today. >> thanks for inviting me. >> why did you do this simulation three months ago, before most people had never even heard of the coronavirus? >> well, those of us in public health knew about the coronaviruss, because we know about sars, we know about mrs. we've been concerned about them for a long time. we chose coronavirus for this exercise because of the threat that coronavirus has posed the point of the exercise, however, was not the number of deaths, it was to point out that there could be societal and economic consequences from a severe pandemic, not just health consequences >> you're not only a doctor but you specialize in health security, eric i'm just curious what you make of the quarantine efforts that have been put in place by chinese officials and if those will be effective in containing this virus >> well, this is the largest

ever effort to quarantine a city, and i'm afraid i think it's unlikely to be effective. i think people will have already escaped the area, that there are already cases now in every province of china and in multiple other countries so, i think probably the cat is already out of the bag and these attempts will be unsuccessful. >> doctor, what are you expecting in terms of what we'll see in terms of the virus's spread outside of china? we did hear from the w.h.o. yesterday that we have seen person-to-person spread beyond just that first infection in china. do you expect we're going to start to see that here in the u.s. and in other countries? >> i think we probably will see some degree of human-to-human spread in other countries. the country is how much? the advantage we have here is that we know about this virus, we're looking for it, we will isolate people who get sick. when it first emerged in china,

they didn't know about the virus, and so, it spread fairly widely, even before they knew what it was. >> before you go, so businesses here in the united states that deal with the public -- airlines, hotels, restaurants -- what should they be doing? and i'm not talking about, you know, over the whole country, but in those areas where they're more likely to see people who are coming from china and may have been exposed to this virus. what should those businesses do, do you think >> well, i don't know that there's that much the businesses themselves can do. public health officials ought to be screening travelers, advising people if they get sick, they need to get health care. if they've come from china, or particularly from wuhan. hotels and other travel-related companies, i'm not sure there's much that they can do. >> certainly seen a lot of hotels inside china take precautionary measures question is when the u.s. ones will feel the need to do something. we'll leave the conversation there. dr. eric toner, thank you for

bringing us your perspective on the coronavirus and meg tirrell for bringing us the latest. >> of course. >> you're welcome. coming up, a busy week of earnings coming up tech names on deck -- apple, microsoft, facebook and amazon among them we'll tell you which could surprise and which may disappoint. plus, boeing test flying a brand-new plane for the first time today -- >> so we've heard. >> but problems with its current planes continue to weigh on the stock and the u.s. economy that story when "power lunch" returns. at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence.

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welcome back yes, that test flight of the boeing 777x still on the runway, waiting for takeoff. phil lebeau and his intrepid cameraman, bob pollack, are drenched at this point they're in everett, washington, waiting for this to -- what are we waiting for here? what's taking so long? >> reporter: well, a couple of things first of all, the ceiling cover. they have to have a certain threshold where they feel that they can take off and they can start doing -- remember, this is a test flight. this is not just for all of the employees who are here to say, whoo-hoo, we took off! no, this is the beginning of the test flight sequence so, there are certain parameters that they need to meet

also, typically, you would take off into the wind. well, you've got a wind going this way test flights have to take off in this direction because you don't want to go over a residential area so as a result, they have to go this way they're concerned about the tailwind and they want to make sure that all of those parameters are in the right places before they take off. we have seen the weather turn a little bit we finally saw the sun it's still extremely windy out here, gusting, and again, we're waiting for the 777x but we can't stress enough, bill, this is not just, you know, boeing saying we need some good news, we need to have our new plane fly. this is the beginning of the test flight sequence, and this will go over several months now where they're working, making sure that it meets all of the standards that they expect it to meet, that the faa expects it to meet this is critical to the ultimate certification of this airplane. >> all right thank you, phil. it's gone very well so far we'll check back with you at some point. >> rubber band broke. >> something like that. >> reporter: you bet.

>> now, while boeing does show off its new plane, shares are at lows of the day as the company says it is considering another production cut to the 787 dreamliner, as production of the 737 max remains halted, each having an impact on the broader economy. steve liesman is looking at all angles of this particular story here steve? >> yeah, bill, thanks. boeing's news that is prompting another round of cuts to economists' growth forecasts -- that is the one that said they may not deliver the 737 max until the third quarter, and the result is that the second-quarter growth forecasts are affected here. bank of america this morning lowering that forecast by 0.3% to 2% as a result of that news ethan harris writing "the longer the shutdown persists the higher the risk of negative multiplier effects as workers laid off spend less, hurting the economy more broadly." economists uniformly cut their first-quarter gdp outlook by a half a point or more when boeing last month announced it would halt production of the max they dialed in the rebound for the second quarter

not so fast. some of them are now forced to take out the eraser again and take a half point off the second quarter and push that into the third quarter. what you're looking at here is the forecast of action economics. this is what mike englund did, lobbed a half point off the first quarter, then he had to lob another half point or 0.6% off the second quarter and put it back in the third quarter boeing says it's not laying off workers and david calhoun said this week production of the 737 max would begin months before deliveries start trouble for economists and investors. the next time boeing meets a deadline for the return of the 737 max will be the first time. >> beyond gdp, any other ways boeing's troubles could show up in the economic data we're talking about not only the largest company waitieighting oh dow, but largest u.s. exporter. >> you raised the question first of all, it's extraordinary for not only a single company, but a single product to have this outside effect ongdp. it's very rare that it happens exports are a major root because this is a major export you can see the effect of boeing

on the gdp data when you look at shipments of civilian aircraft guess who's delivering civilian aircraft, boeing that's basically the main one. and finally, in workers and worker layoffs and the multiplier effects that come from that are the ways that you could have gdp effects. >> yeah, suppliers, too, as we heard from spirit. steve, thank you. >> thank you, steve. both boeing and coronavirus are weighing on the markets as stocks fall from record highs. we are at the lows of the session. the dow is down now more than 267 points and on track for its worst week since august. for more, let's bring in evan brown of ubs asset management, rob insana, senior adviser to schroeder's north america. evan, we're looking at these two larger events weighing on markets right now, but we're also getting set for the busiest week of earnings season next week you're a believer in the industrials. tell us why. >> yeah, so, in general, we see global manufacturing healing so, we're all focused on the coronavirus and boeing, but what hasn't gotten a lot of news

today is that european manufacturing pmi really strengthened significantly, good balance, japan as well so, the underlying story is that all of the effects of the trade tensions are kind of getting out. there's kind of the trade de-escalation is helping and now we're inflected higher on the global economy, which should be good for -- >> but doesn't it take time for the pickup in economic growth to feed into corporate profits? >> it does, but the market won't wait so, i think the multiples you'll see rise and i think that's why we've seen industrials perform better and better, even as some of the earnings haven't come through just yet, is because the market sees this improvement is coming. >> in the meantime, bank of america says this market's getting ahead of itself, getting froe frothy paul tudor jones just the other day said the market reminds him of 1999. >> in some ways. the highest market cap is in five stocks.

the last time we saw that was in fact 1999. and we talked last week about the market getting ahead of itse itself you saw some technical signs that we're overbought. you've seen indications that maybe valuations are on the high side so it's not surprising that the market would correct based on these two items. you don't want to underestimate the potential impact of the coronavirus if it becomes very serious, but we've gone through this before. the market sold off on sars. it sold off on other viruses that have spread around the world. you know, you don't want to be too cavalier about it, but certainly, the market's been looking for an excuse to sell off. seems what we're getting today. >> are we getting ahead of ourselves? i mean, you're pointing to yet another part of the business cycle starting to rear itself up if, in fact, industrials are starting to, you know, reheal themselves right now but you already have a market that's been anticipating this for a long time, i guess. >> yeah. i think -- so, what i would just say is that turning points in the economy can be the most powerful for price action. it's when people underestimate

first things getting less bad, then them getting good, then them getting more powerful in the economy. and we're still trading that there's still a lot of skepticism about the strength of this economic rebound. we actually think it's going to be a lot more powerful than people think we can't forget just how many central banks around the world eased, and that's just hitting the economy now with a lag, so -- >> and they have the hold button on right now. >> that's right. >> speaking of central banks, fed meeting next week. how much do you think the dialogue will be centered around these larger events, whether coronavirus or the drag of boeing's troubles on economic growth >> they'll certainly be part of the discussion i think the fed has expanded its mandate away from just data-dependent from the u.s. economy but globally data-dependent, focused on geopolitical issues. and so, certainly expect these topics to come up in governor powell's press conference. i think in general, he will present them as risks, but not something that the fed is overly concerned about. >> no disrespect, but i think

the fed has always looked at global data. as long as our career goes on, they've looked at things outside the united states. people argue about whether or not -- >> why wouldn't they >> well, yeah. if it's a factor that could affect domestic growth, they'll consider it. i think the other thing, too, and where i might deliver a little bit is, look, we started to see a rebound in global interest rates late last year, so $17 trillion worth of negative interest rates has begun to fade and we're seeing rates move back up towards zero around the world, which was an early indicator that the worst might be behind us i would be a little less optimistic about the strength of growth and say that maybe the fed did achieve a soft landing, and that might be the operating principle going forward. it's interesting to note that the fed fund futures market is now beginning to price in a rate cut in june for the first time this year. now, i don't know why. the economy looks just fine. it's almost goldilocksish, but some of the futures traders might be getting ahead of themz p themselves with the notion of a cut this year. >> especially in an election year. >> well, you don't want to be in that position necessarily. >> exactly. >> although june would be about as late as you want to go.

>> influence if you're going to do it, i guess that's the end of the window there. >> it would seem. >> ron insana, evan brown, thank you. >> good to see you around. >> one-time event right now. coming up, it pays to pay, apparently payment stocks are moving higher today, or they were. american express, square among them should you be a buyer? plus, oil having its worst week since may, down more than 11% so far this year the closing trad aesnd more, staggering stats, coming up on "power lunch." i consulted with your grandmother's doctor.

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the senate impeachment trial of president trump under way as house managers wrapping up opening arguments. elan muey is live. >> reporter: house democrats will spend their final two hours focused on article two, obstruction of congress. >> there's a toxic mess at 1600 pennsylvania avenue, and i humbly suggest that it's our collective job on behalf of the american people to try to clean it up. >> reporter: now, their strategy is to raise three key questions in the minds of the republican

colleagues first, how would they feel if a future president blocked a senate investigation second, if new information were to come out, would a vote against witnesses or documents look political and finally, is it perfect for a president to ask a foreign government to investigate a political rival? now, democrats know that they do not have the votes to remove president trump from office, but guys, they do believe there are as many as 12 to 13 republican senators whom they could potentially get the support of to seek out new witnesses or new documents. back over to you. >> all right, illiylan mui on capitol hill thank you. time for "trading nation." american express is trading higher after the earnings from estimates comes with square and paypal crediting square and paypal with crediting and market share gain. greg johnson of piper sandler and michael binger are with

gradient investments michael, you think better-than-expected results from american express bodes well for the broader sector >> yeah, i do. you know, we like the whole fintech space. we think this wave of paper currency to digital payments will continue and will expand around the globe and it's just a good space to be in. we own all these names in various portfolios at gradient, but two that we think are particularly interesting is the first is paypal. it's been a relative underperformer in the space. we think they're going to have a good quarter you know, their historical paypal platform should do well, but look for a good quarter at paypal but the one i really like is square i think they have a great addressable market, the small and midsized businesses are continuing to use that as their payment platform it's been a real underperformer. they had a couple bad quarters we're into it now and i'm looking for a good quarter and this stock could be up easily 10% off a good quarter. >> craig, let's stick with square what do you make of the

technicals >> yeah, so, when i look at the chart on square, i would agree the chart does look very bullish. and on a weekly chart, if you unpack that, this has been a symmetrical triangle in the making for the past year and if you measure that out on an objective, it would suggest that you could see a move up toward around $74, $75, so definitely a buyer here based upon the charts. >> all right we'll leave it there craig and michael, thank you for joining us for more "trading nation," head to our website or follow us on twitter @tradin@tradingnation. and just ahead on "power lunch," tech is on deck. another big week for earnings ahead. mark mahaney's going to join us from rbc he says there's one name that could surprise the street next week plus, the coronavirus outbreak rattling stocks today we'll continue to monitor those markets. and a breakfast bull wendy's preparing to roll out its breakfast nationwide, but it's got strong competition already. one analyst says that the chain may have a leg up, though. it's all about location, location, location

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welcome back, everybody. i'm sue herera here's your "cnbc news update" this hour. pentagon officials announcing that 34 u.s. service members suffered brain injuries following iran's missile attack on a military base in iraq earlier this month eight of them are now back in the u.s. being treated while nine others are still being evaluated in germany harvey weinstein arriving for his sexual assault trial this morning dr. barbar ziv telling the jury that most sexual assault victims continue to have contact with their attackers, who often threaten retaliation if the victims tell anyone what happened. and new york giants quarterback eli manning retiring following a 16-year nfl career that included two super bowl

wins he started 210 consecutive games for the giants, the second longest streak in nfl history, and he never missed a game due to injury. >> i choose to leave this game with only positive memories. why harp on the not-so-proud moments? where is the value in that if there are going to be endless echoes, choose the good ones for now, i'll focus on the touchdowns, the wins, celebrations with teammates. >> and he's also going to focus on his extensive charity work. we wish him the best that's the news update this hour seema, back to you. >> at the age of 39. wow, pretty amazing. sue, thank you 1.5 hours left in the trading day. let's get a check on markets right now. we are at the lows of the session on these fears around the coronavirus outbreak, plus boeing woes continue to weigh on the market the dow, we did hit 300 points lower on the session now currently trading down by

281 points energy, health care, financials are the key laggards utilities are higher, so it's certainly a defensive tone to today's market the s&p 500 currently down 40 points, nasdaq down 115. >> the sector that nobody ever likes -- >> energy. >> utilities. >> no matter -- oh, yes. >> utilities and they continue to go higher. >> dividend play. >> exactly. time now for our "power movers." interl soaring after crushing revenue expectations thanks to strong demand for its personal computer and data center intel's having its best day since 2002, believe it or not. broadcom shares are in the green today as well after striking a $15 billion deal to supply apple with wireless components for its products apple currently accounts for 20% of broadcom's annual revenue and we end with the biggest loser of the s&p 500 today, discover financial services. despite beating on earnings, the street was not impressed by the company's cost forecast for this

year the fs is having its worst day in over a decade and that would be among those financials that you mentioned, seema, that are the laggards in today's trading. speaking of another laggard, oil market closing for the day let's get to eric chemi. >> laggard is right. look at all this red behind me here fears over the coronavirus and its impact on demand continuing to weigh on the oil market, which has fallen for the fourth straight day, having its worst week since last summer wti has already fallen more than 11% this year. and today hit its lowest level since november 1st the move lower has slammed oil and gas stocks, making energy the worst performing s&p sector over the past week one of the etfs that tracks those names, ticker xop, it's on pace for its largest weekly decline since december of 2018 back to you guys. >> all right, eric thanks very much. so, technology stocks are lower today as the markets continue to sink deeper into the reds big week, though, of earnings

ahead of us for that sector -- apple, facebook, amazon, microsoft will all be reporting next week. which names will be the biggest winners and losers this particular season? joining us, mark mahaney's back with us, analyst at rbc capital markets. you sort of see a mixed bag here, don't you, for next week >> well, i think we're going to get at least some of the consumer internet names -- facebook and amazon -- we should get two reads. one is that the online advertising market is very robust and it's probably going to get stronger, by the way, going into 2020 because of the elections, olympics. it's a big year for advertising. so we should hear that from facebook that should be the good news we should also hear good news from amazon about the holiday season it looks like the consumer's pretty strong in terms of retail sales, at least online amazon should have fully participated in that, so we should get that kind of good news the one thing we've been warning investors and clients about at rbc is the operating income estimates for amazon going

forwards this company is known for aggressive investment cycles i've tracked them for 20 years they never waste an opportunity to invest aggressively i think a few areas that they're looking to do that may be physical retail, maybe groceries, much more in cloud computing and this one-day fulfillment, you know, shipping logistics infrastructure so, i'm just trying to be careful about the expectations i thought they were a little too high that's why we flagged it as an issue for amazon next week. >> beyond amazon, i'm looking at your estimates, mark, for companies like facebook and uber a target of $270 for facebook. that implies a 23% up side from current levels uber, 64 bucks that's a 75% upside from where it was trading at. what are some of the biggest risks to these quite bullish estimates? >> yeah, so, i'll start with uber you know, it's actually our number one pick for the year you've got a clearly dislocated stock, very controversial stock last year, broken ipo, massive losses if uber can bring those losses down and really prove to people that they'll get to break-even

in 2021, and if they can do that while maintaining reasonably consistent growth in that core ride-sharing business, i think the stock could materially outperform it could be the facebook of 2020 facebook was really dislocated at the end of '18 and fundamentals stayed very well intact the stock ripped 60% last year i think that's kind of the setup on uber. i know the sentiment's negative, and i think if they continue to do things like shut down uber eats business in india, which they did earlier this week, bring down those losses, i think the markets will respond really positively that's the bull case really on uber >> simplifying its business, streamlining it a bit more is part of the bullish thesis. >> that's right, seema. >> but what about engagement you see it rising from 13% to 50%. what needs to happen for uber to really expand its user base? does it come down to pricing or getting into new markets >> i guess it's a mixture of those and just increasing the overall functionality of ride-sharing i just want us to step back a little bit where are we in this "s" curve of adoption of ride-sharing? our survey work found that it's

only about 40% of u.s. internet users use ride-sharing, and of those who use it, only about 15% use it on a daily or weekly basis. so i think that penetration rate can double, that engagement rate, if you will, the frequency rate can double or triple. i'm just stepping back and saying, this company could sustain 20% bookings growth in its core ride-sharing business for a lot longer than people realize, if you look at where we are on the "s" curve we're earlier than most people realize. >> facebook, what ever happened to the regulatory overhang we were talking about last year it's been pretty quiet lately. you've got a lot of other things going on in washington it's also an election year but are we going to see something in that regard this year and what do you think it will be >> well, we did see something last year. they paid this $5 billion fine to the ftc now what you're going to see this year is anybody who's running for office is going to be using facebook, because it's the best way to target suburban moms in cuyahoga county in ohio as one example it's a very good marketing tool. it's what happened candidate

trump become president trump, so you're going to see a lot of people try to match that will there be more regulatory risk maybe. i think the company had real brand damage a year and a half ago, and it takes that long. it takes a year or two i saw this with netflix five or six years ago. it takes a year or two to work through the brand damage in the meantime, the roi advertisers see on facebook hasn't changed at all, so advertisers are still there and consumers are still there, thanks in part, though, to the instagram asset. >> lastly, i didn't realize until i read your note, mark, that snap, one of the best performing stocks last year, up 196%, and it's your highest conviction long. do you think if you're not in the stock now, you've missed the boat, given the big run we've already seen >> yeah, thanks for the setup, seema. it's not our highest conviction long our number one pick really would be uber. i look at the -- i think the trends -- we upgraded the stock early last year. maybe we got lucky i think they have done a lot better job of rolling out new features and initiatives they finally solved the android problem. the app wasn't working well on android devices, and it's an android world, not an apple

world, so you need to fix that they did we saw a really good cycle of innovation there's a lot of good features on there and this isn't a direct competitor to instagram or facebook it's a communications tool for the vast majority of people who use it, so it's really sticky and i think investors underappreciated how sticky snap was as an asset. so yes, it remains a long for us we continue to like it, not a top pick, but we remain positive on snap. >> got it. >> very good mark mahaney with rbc capital markets. good to see you, thanks. >> thank you, bill. the ten-year yield falling to its lowest level since november rick santelli tracking the action at the cme. rick, what's going on? >> lots going on we all know, we've listened to bob pisani's great coverage, that it's going to be very difficult for investors to convince themselves to go home long stocks anywhere globally this weekend, and that selling pressure as built throughout the session is affecting ten-year note yields, the whole curve, as a matter of fact look at one week of two-year note yields. they looked to close at the lowest yield since october 9th

and the interesting thing is that at 1.48%, we have challenged the iraq headline lows from the eighth of january. let's look at two years and open it up. you see on that chart, lowest since october. one week of 10s. one week of 10s really is dramatic worst week we've had in a while. we're establishing the lows for 2020 as a matter of fact, we're establishing lows that we haven't seen since october 10th on a closing basis open the chart up to august. on the left side of the screen, early september, you see that very significant cycle low close at 1.46% you want to pay close attention to that. but maybe if we zoom out, you really understand what's at stake here go back to may 2012. remember, 1.36% lows in july of '12 and july of '16. that chart shows how dramatic the drop in rates has been recently, and it's like a magnet pulling the markets' yield ever lower. bill, back to you. >> all right, rick thank you very much. meantime, the dow is near the lows of the session.

we were down 300 points momentarily. since then, we've bounced a little bit we're still on track for the worst day since early october. we're going to head down to the big board to get the trader's edge in just a moment here with the dow down 242 points. plus, it's been a rough week for chinese stocks goes without saying. as investors sell on coronavirus fears. we will drill down on the worst-performing names in that sector as wellhe"per nc ctinues after this. it's either the assurance of a 165-point certification process. or it isn't. it's either testing an array of advanced safety systems. or it isn't. it's either the peace of mind of a standard unlimited mileage warranty. or it isn't. for those who never settle, it's either mercedes-benz certified pre-owned. or it isn't. the mercedes-benz certified pre-owned sales event. now through march 2nd. only at your authorized mercedes-benz dealer.

the dow is currently down 260 points with just over an hour left of the trading week, and it's not just bad here chinese stocks having their worst week since last summer deirdre bosa taking us inside the numbers. >> hey, seema. well, chinese internet stocks are getting hit hard this week as well, and those are some of the biggest names that are listed here in the u.s the etf is down nearly 9% this week alibaba and jd.com are deep in the red. alibaba's on pace for its worst week since september of course, it is listed here and in hong kong online names could ultimately be more shielded from the virus's

impact on say airlines and travel stocks, but they often trade as a proximay to china and there are worries that consumer sentiment will be bruised. among the hardest hit stocks are, of course, as seema's been watching, in the travel space. china eastern, china southern down double digits they also have adrs at work here, too. >> deirdre bosa, thank you. if you watch the markets carefully enough, you see that boeing shares have suddenly turned positive. let's get to phil lebeau, still there in everett, washington some words from the faa here, phil. >> reporter: right administrator steve dixon making phone calls to a number of airlines remember, earlier this week, boeing put out what it considers its latest guidance regarding the 737 max. and in that guidance, the company telling both the faa as well as airlines, a number of other key stakeholders, look, we believe that we could have the ungrounding of the 737 max by the middle of this year.

that created perhaps some questions among airline executives as well as suppliers. well, does this mean that the faa agrees does the faa also think that this could happen? administrator dixon talking with a number of airline executives is saying that the faa is seeing what they're calling good progress from boeing when it comes to what needs to happen to get the 737 max ungrounded now, he's not giving a deadline and he's not saying, yeah, we expect it to be ungrounded by the middle of this year, but if the progress continues, what administrator dixon is saying, potentially? could it be the middle of the year that the faa believes that all of the things that need to happen with the maximum happen, and it could be ungrounded potentially. but again, there's a big qualifier there, guys. what he's saying is, progress is being made, but it's too early to say, yeah, we definitely think this is going to happen by the middle of the year >> and this from an faa administrator who has been very, very tough on boeing. >> reporter: yep.

>> and you wonder if the new ceo at boeing is part of this right now, that he likes what he's hearing from the new guy >> reporter: i think that there's a communication there, not only between dave calhoun, the new ceo of boeing, and administrator steve dixon, but from the higher-ups at boeing to those at the faa who are overseeing this process. for a long time, bill, the communication was limited. >> right. >> reporter: and when you talked with people at the faa, they would say, not really hearing anything kind of hard to do what we need to do if we're not hearing anything that has changed and what you're hearing from steve dixon is, we're seeing progress now, let's not get ahead of ourselves and say that we'll see the plane certified say by may or june or july, but they're seeing progress, and that's a big change in the tenor and tone from the faa compared to a couple of months ago. >> and phil, we're seeing boeing shares reverse earlier gains, now up 1% at the highs of the session on those possibly encouraging headlines from the

faa. at the same time, we're awaiting the launch of the 777 max. any progress there >> reporter: we are waiting on the conditions the weather is considerably better than it was a couple of hours ago. they have basically said in the next hour, hour and a half, if everything aligns the way it should, for them to feel comfortable doing this first flight, they'll do it. otherwise, they'll scrap it, move it to tomorrow or sunday, until the conditions are optimal. >> but hey, a pleasant afternoon for you and bob out there on the tarmac in everett, washington. >> reporter: absolutely. >> thank you, phil see you later. so, stocks under pressure but off the lows of the session that we mentioned. especially as boeing turns positive, let's get some reaction from the new york stock exchange matthew cheslock with virtue financial joins us right now and right or wrong, you know, matt, boeing has become something of a bellwether for this market, and you'll wonder -- i mean, it's a market that's been starved for good news from boeing, and they're

just taking this casual comment from the faa administrator and pushing the stock sharply higher today. >> yeah, looking for a reason to rally today. you said the market is down 300, now it's down 250, all because of boeing. we had a technical move, breaking out below 305 the other day. we had some analysts come in and throw the baby out with the bath water at the end, saying we're done with this company that's the kind of, you know, reversal that you like to see down on the trading floor. when people give up on it, that's when you see these sharp rallies, and that's what we're getting today, just on this little substantial or maybe not substantial, newsworthy event. so it's going to have some legs to it. obviously, boeing's got a long way to go on the upside to recoup some of its prior highs, but certainly, this is a relief rally in boeing. >> what's really stood out to me is the underperformance in energy, matt, now down 7% for the week some of these big oil producers down 10% to 12%. would you be a buyer here of some of these names? >> you know, it's interesting. there was an overreaction when

we had the u.s./iran controversy that went on you know, oil spiked so, now we're back into these levels that we saw that were there for so long. so, am i a buyer at these levels probably not on a friday afternoon. we have to wait and the weekend shakes out you know, this has been one of the talked-about sectors that would be hit the hardest if this virus goes viral, goes even further, maybe not just in the u.s., maybe we start to see things show up in europe that will affect travel over there, too the price of oil could crater after that >> thank you, matt, up at the new york stock exchange. see you later. mcdonald's has owned fast food breakfast for many years. now wendy's is making its move up next, an analyst who ys isat will work this time. power breakfast, we'll be right back at fidelity, online u.s. stocks and etfs are commission-free.

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some intriguing developments you can see boeing had been one of the big decliners on an otherwise big down day, now turning around suddenly on word that the faa administrator steve dixon is telling airline executives that he likes what he's hearing from boeing, and

that things are a track to try to bring this plane back in the air, the 737 max, maybe be midyear. now all of a sudden boeing's stock is up. well off the lows today. >> at the highs of the session for boeing that's certainly helping the broader market let's move on to food stocks, this is "power lunch", but we want to talk about breakfast. wendy's passed most important meal of the day didn't go so well, but this time hoping to score big in the breakfast bowl, with the morning menu set to roll out in march. our next guest is a breakfast bull he joichbs us now. good to see you. wendy's has failed at breakfast, so why do you think this teem it will work? >> the key is to understand why it failed last time around and

franchise buy-in, so the franchise system is keen to roll it out they also have brand momentum, which is a big positive. they posted eight or nine years of consecutive positive comp growth they're rolling out national whenever they choose to roll it out, it will be all stores on the same day, whereas the last time around they went more with a regional approach. that allowed the competition to blanket those particular cities with competitive offers that made it difficult for wendy's to succeed. >> do we know what they're going to serve yet one of problems you face is if you add. >> disenfranchised, what are they going to serve this time. >> it didn't last last time

around they have less menu items, so for simp replity, this i have reduced that they also reduced the equipment that needs to be used, the existence equipment rather than bringing in additional xwimt they're also going to do something interesting to reduce labor. they're not going on open up the full restaurant for the first few hours. it would be drive-thru only, which is where most of the breakfast traffic comes through in the week. >> enough to beat mcdonald's >> i don't think they necessarily need to beat mcdonald's it's close to 40% of mcdonald's profits wendy's is fighting a whole lot of players >> thanks for joining us, jeff bernstein. much more on the markets coming up. you can watch or listen to us live on the go, on the cnbc app. back after this. ♪

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yo a dramatic turnaround for boeing boeing was down to 312, now it's 325, up 2.3% we'll see what this means longer term right now trader likes what they're hearing from the faa. >> supportive comment tear from

the faa, though they say the approval could only happen if boeing continue to say make complete and thorough revisions. but dave calhoun is clearly making it a big priority i'm sure the gang on "closing bell" will have more in just a moment. >> see you then. welcome to "closing bell." today here at the new york stock exchange i'm at the disney post, that stock off a percent and a half as fears of the coronavirus. the dow off 168 points right now, but well off the session lows, with we saw it drop more than 300 points. right now the biggest contributor to the dow, it's boeing. even up for further session highs. we'll have a look at what's driving the action, the nasdaq