now is it is 5:00 a.m. at cnbc global headquarters. here's your five at 5. futures pointing to steep losses amid growing fears over the coronavirus. that outbreak is expanding as another case here in the u.s. is confirmed and the death toll in china climbs we're live in beijing with the latest. remembering a legend people all around the world are paying tribute to kobe bryant after he was killed in a helicopter crash the state of housing, the ceo of one of the top mortgage companies breaks down the trend he's seeing in the market. a decade of dominance. apple celebrating ten years since the ipad's debut as "worldwide exchange" begins right now.

good morning and welcome i'm courtney reagan in for brian sullivan here's how stock futures are looking on this monday morning, decidedly negative here as we are hours until that open. right now the dow's -- 65 points that seems to be accelerating those losses as the early morning preopen trading continues. the s&p is down by 43 points and the nasdaq is indicating a lower open by 152 points let's get a quick check on the bond market. take a look at yields and the direction we're heading. it is yield on the ten-year note, 1.27%. we'll watch that this morning. energy prices under pressure wti crude down by more than 3%

brent crude also down by more than 3%. let's go worldwide it's a good reminder that asia is mostly closed for the lunar new year holiday but europe is open for business. you can see here already early signs of negative trading. germany down by 2% the ftse 100 off by more than % 2% spain is lower by 1.4% markets in japan are open. the nikkei seeing its biggest percentage drop in five months on mounting concerns of the coronavirus outbreak japanese nikkei down by 2% tourism stocks leading the decline in japan the number of people infected by the virus, it continues to climb. chinese officials have confirmed more than 2,800 cases as the death toll there climbs to 81. they've also announced expanded efforts to contain the outbreak, including extending the lunar new year holiday to keep the public at home

meanwhile, here in the usa, a fifth case of the virus has been confirmed in arizona eunice joins us from beijing what is the latest to contain the virus? >> reporter: i'm currently in one of the most popular entertainment districts in beijing, if you can believe it it's normally shoulder-to-shoulder busy on a normal day it would have been quiet because of the lunar new year holiday. it's extremely, unusually quiet tonight and for the past several days the reason is because people nationwide are scared to go out of their homes the chinese government has been moving very aggressively to try to contain what they described as a strengthening virus over the weekend, chinese premier li keqiang is in charge

and currently in the hot zone, wuhan. after xi jinping convened an emergency meeting on saturday in order to try to get a handle on the situation, which he described as grave now, there has been quite a bit of criticism public for the authorities and the management of this situation. especially in wuhan, courtney, because the wuhan mayor said 5 million people have left the city because of the lunar new year and the outbreak. there's been a lot of concern about that number of people leaving the city despite the lockdown >> eunice, i understand officials in shanghai have announce the new steps to try to contain the outbreak beyond having folks stay at home, what else are they doing >> reporter: the city of shanghai moments ago announced -- has ordered companies to not come back to work they say, do not resume work

until february 9th this comes after the city of suxhuo also told its companies not to come back to work until february 8th what you're seeing is a lot of cities across china now starting to consider and be more concerned about the spread of this disease and one of the big issues is that this could have a major economic impact as the concerns continue. >> absolutely. eunice, thank you for bringing us the latest. make sure you keep yourself safe as you report on this for us. as we mentioned before, the mounting concerns about the coronavirus are hitting u.s. futures this morning investors will have plenty more to chew on in the days ahead because it's the busiest week of earning season about 130 companies in the s&p 500 and 14 dow components are among those reporting. the list includes 3m, starbucks, apple, mcdonald's, microsoft and amazon for more i'm joined by craig

johnson, chief market tech anything nigs at piper sandler what a monday morning we have. what's top of mind because there's a lot to pick from >> as you look at this market, the coronavirus is certainly a serious situation, also in terms of the market itself, courtney, conditions were kind of right for some kind of selloff to occur. if you looked at how overextended the market was, how far above the 200-day moving average we were from a technical perspective, all the conditions were right to have some sort of reason to take some profits in this market. that's what i think the coronavirus is at this point in time just an excuse to take some profits. longer term trend, it's intact the economy is file. our year-end objective is 3600 we can get there but in the meantime we need consolidation and filling. >> excuse was almost the word i was going to use when i was going to ask you if that's what it feels like it is because of the stretch valuation for some big names.

if we look at past outbreaks, sars is one that comes to mind for most people, that was in 2003 in those moments we were coming out of a bear market, perhaps a bit more fragile than we are here this may be an opportunity not to make light of the seriousness of this disease. >> absolutely. i 100% agree with that when we wrote up our monthly piece, we titled it "i'll met with you," a bla on the english song because the market was melting up as we look at this period of time and what we were seeing in january of 2018, we were seeing a lot of stocks that were going pa parabolic on the charts. caterpillar, 3m, boeing, they were going parabolic we know how those charts end badly. fast forward to today. apple, great company, nothing wrong with the company but the chart has gone basically straight up. we do need to see some profit-taking and resetting of expectations as it's starting to get ahead of itself.

>> profit-taking, do you think that will happen in light of many of those companies reporting earnings apple is reporting as the others you mentioned with the parabolic stock charts. >> there's a lot of expectations built spew these companies, 150-plus companies reporting this week. there need to be pretty good results and we need to see sop upside surprise to those in bz to keep this moving. earnings haven't been growing quite as quickly as what i think a lot of investors have been looking for. the expectations are in federal government -- negative, and negative q3 earnings, too. two quarters of negative earnings will not set up well for the tape and supports the rationale for a setback and correction in the tape because it's too far ahead of itself again, an excuse at this point in time to take some money off the table. >> i was going to say, i mean, it sounds like if you're looking at 3,600, this is perhaps temporary. >> correct >> where would you be looking for pockets of opportunity here, then, if it seems that prices

fall a little bit and there might be a moment to get in? >> sure. what i'll be looking for, again, if you take a company like apple, if you see a simple correction that takes the stock back 5%, 10%, that's a buying opportunity. other stocks i like, i like stocks like ge they've been down, washed out, starting to show an improving chart. i'm a buyerer of that. stocks like microsoft, uptrend, but it could correct back to the 50 or 200-day moving average better entry point even stocks like philip morris have reversed down trend i like stocks like that. we upgraded the energy sector from underweight back to neutral this last month. we think expectations are extremely low. valuations have been set to levels we have not seen since '99-2000 while some tech names are extended and energy names look fairly well priced -- well, discounting a lot of bad news at this point in time, it has a feeling to me like '99 where you

see profit-taking intact, money came into energy and you see this mini rotation i don't think it will be to that extreme but i think there's better value in the energy space than people are giving it credit for right now. >> energy has definitely been one of those sectors that has been further behind than any others thank you for being with us on this busy monday morning. when we come back, google set to face new pressure from a coalition of state attorneys general. details on their plans to target the tech giant. plus, with less than a week until the super bowl, diana olick is looking at the risks that pro sports teams are facing with their stadiums. a big night for 18-year-old pop sen tags billie eilish as she cleans up at the grammys a busy hour still ahead when "worldwide exchange" returns man: can i find an investment firm that has a truly long-term view? it begins by being privately owned. with more than 85 years of experience over multiple market cycles. with portfolio managers who are encouraged to do what's right

over what's popular. focused on helping me achieve my investors' unique goals. can i find an investment firm that gets long term the way i do? with capital group, i can. talk to your advisor or consultant for investment risks and information. by consolidating your credit card debt into one monthly payment. and get your interest rate right so you can save big. get a no-fee personal loan up to $100k. get a no-fee personal loan because it's tailored to you! ...take the personal assessment and get matched with a proven weight loss plan. find out which customized plan can make losing weight easier for you! myww join for less than a $1 a day.

welcome back to "worldwide exchange." let's get a look at other top stories we're looking at with rahel solomon. >> lots of tech news let's start with google. state attorneys general are reportedly set to meet with attorneys from the justice department to share information on their probes into google. according to "the wall street journal," saying the sitdown is expected to happen next week the state and federal investigations have focused on google's powerful position and the lucrative market for online advertising. the journal also saying the meeting is seen as the start of a dialogue that could eventually lead to both groups joining forces in their probes. apple and microsoft are set

to take part in a meeting today to make it easier for patients to access and share their medical information. the companies will each send a representative to the gathering that's being hosted by a group supporting efforts by the department of health and human services on that very initiative so, the inclusion of apple and microsoft is really notable because the two have largely been silent on this topic. finally, visa is getting behind a payment startup company that powers a number of popular fin tech appears they sell payment software for banks and fin tech firms to process their transactions. >> lots of tech news. >> busy morning. >> thank you for being with us. on deck, jay powell and the federal reserve are set to kick off a policy meeting this week new reporting on the recession-fighting efforts the central bank may be weighing that's still ahead >> announcer: today's big

number 134. that's how many s&p 500 companies are set to report earnings this week making it the busiest week of earnings this season 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. don't get mad get e*trade and start trading commission free today.

some travel and tourism stocks in asia getting hit today on concerns about that wuhan virus. japan airlines falling nearly 4% japan's airline index dropping

to its lowest level since may of 2017 shares of oriental land, that's the owner of tokyo disney, tumbling almost 8% the worst decline in five years. and european luxury goods maker also in the red today, lvmh. they rely heavily on chinese demand shares are down about 3% this morning. 3.5% at this point. still ahead, the world is remembering a basketball legend this morning after nba great kobe bryant died in a helicopter crash. we'll go live to los angeles when "worldwide exchange" returns. ♪ ♪ i've been a caregiver for 20 years. no two patients are the same. predicting the next step for them can be challenging. today we're using the ibm cloud to run new analytics tools that help us better predict and plan a patient's recovery. ♪ ♪ ultimately, it's helping thousands of patients

return home. and who doesn't love going home. imagine a mouthwash that strengthens your enamel, imagine, feeling fearless when you walk into the dentist. while preventing cavities up to 70%. act anticavity rinse. for a confidant feeling in your oral health, stop imagining, start acting.

. fans around the world are still in disbelief kobe bryant and his 13-year-old daughter were mopping those when his helicopter crashed in southern california. jennifer, good morning >> reporter: good morning, courtney the ntsb's go team is here now they're expected to get started on a complicated investigation that is expected to last for months a surreal scene for fans outside staples center >> kobe is so great. and i'm just waiting for someone to tell me this isn't real. >> reporter: but there was this. smoking wreckage on on a hillside en routeto the mamba sports academy where kobe and his 13-year-old daughter gianna

were headed. >> i heard a noise, kopter noise, really throw flying. >> reporter: the sikorsky s-76 was flying from kobe's home. >> we know there was a issue with visibility and a low ceiling. the actual conditions at the time of impact, that is still yet to be determined. >> reporter: tributes for the five-time nba champion from new york's madison square garden to his own neighborhood shaquille o'neal calling kobe his brother. a superstar who did so much in 41 years, and to his fans and surviving family, seemed invincib invincible such sadness after an amazing year for the bryant family with the birth of a fourth baby girl, their farther daughter, now left behind along with her two

sisters and kobe's wife, vanessa. courtney >> jennifer, thank you very much the business world is also reacting to the death of kobe bryant in a statement nike, his long-time sneaker endorser, saying, quote, we are devastated by today's tragic news he was one of the greatest athletes of his generation and has an immeasurable impact on the world of sport and community of basketball. he was a beloved member of the nike family. disney's ceo bob iger tweeting, today we at disney mourn the tragic loss of kobe bryant, a giant in sport and so full of life terrible news and so hard to process. apple ceo tim cook tweeting, i admired his athletic prowess from afar and his humanity close up he was an original. still to come, futures pointing to steep losses on growing concerns about the coronavirus outbreak we'll break down how to navigate that trading turbulence as the second half of "worldwide exchange" rolls on

breaking news. a market selloff futures pointing to a more than 400-point drop at the open for the dow. the big driver, rising fears of the coronavirus and the impact on the global economy. we'll have complete coverage as the second half of "worldwide exchange" starts now ♪ welcome back i am courtney reagan in this morning for bryant sullivan.

here's how stock futures are look halfway through the 5:00 a.m. hour. losses have been accelerating since the beginning of the show when we were down 365. for the dow jones now we're down 410 points the s&p 500 is selling off to the tune of 48 points. the nasdaq also seeing losses accelerating, lower by 179 points at this point we are obviously a number of hours until the market actually opens here for trading in the united states. we're going to take a quick look at the bond market where yields under pressure the ten-year yield under 1.7% sitting at 1.62% we know the federal reserve will be meeting this week that is a very reactive area of the market we'll take a look at energy prices, too, which also are continuing to sell off some worries about the economic pressure that may ensue from the coronavirus. you see the wti is down by more than 3.5%. and brent is also accelerating those losses down almost 3.5%

we're going worldwide but we should remind you most of asia is closed for the lunar new year although japan's nikkei dropped 2% that market is open. europe is also open for business broader averages down by more than 2% for france, the ftse 100 and in germany as well let's get a look at top stories with rahel solomon busy morning. >> busy morning. coronavirus still top of mind. the number of people infected by the coronavirus continues to climb. chi nieces officials say 2,800 cases worldwide and death toll at 81. they have expanded efforts to contain the outbreak as we heard from eunice, including extending the lunar new year holiday to keep people at home. in the u.s., a fifth case has been confirmed that happened in arizona. deutsche bank is being probed over its payments to a saudi adviser. german prosecutors are investigating two former

employees of the bank for suspected bribery. the ft says deutsche bank paid more than $1 million in 2011 and 2012 to secure the wealth management business of the senior royal it also adds that some of the pay and additional perks violated deutsche's anti-corruption policies. the financial times saying hedge funds reported $43 million in investor withdrawals. the ft says years of underperformers by hedge funds by the financial crisis have prompted institutional investors to reduce their exposure courtney >> thank you very much, rahel. back to the markets. stock futures facing steep losses this morning. we told you earlier we seem to be accelerating there. the dow jones industrials point lower by more than four points the first fed policy decision of the year due out wednesday we have the busiest week of the

earning season, including names like apple, mcdonald's, tesla and caterpillar. as rahel just mentioned, the coronavirus spreading around the world which remains a major overhang for wall street joining me, kenny from slate stone wealth and a cnbc contributor. kenny, it's a good -- it's good to see you this morning. help us put all of this in perspective, these futures are accelerating the losses at this point. it seems to be on fears of this coronavirus. what do you make of that >> i think the selloff -- i think the virus is the excuse the market needed. i think one of your other guests this morning also made that point. look, we've all been talking about it the market has done nothing but march straight up in a line, no pullback, no consolidation, anything for at least the last quarter. to the point is scratching their head, it's starting not to make sense. something like this virus, while

it certainly is concerning, is the excuse the market really needed to take some money off the table. kind of that's what you're seeing all around the world. asian markets are closed that's part of the reason why -- other than japan that's part of the reason why there's a little more angst because there's no real direction coming out of asia european markets, as you can see, opened lower, trending lower and futures have fallen off the edge in the last 20 minutes with the dow down over 400 points and the s&p over 30 or 32 points, as you and i are talking. i wouldn't make too much of this the pendulum always swings too far to the right and then swings too far to the left on the way back you can say we swung way up on the right and markets did nothing but go straight up and now it's going to correct a little bit so, expect that the market will have an overreaction to the downside and it will stabilize >> so, i hear you on the overreaction and that does make sense i know that this happens however, you also have chinese government telling people not to go to work stay at home for longer than we

had been told previously disney's closing shanghai. mcdonald's closing down locations. there has to be some real loss of business here that is being captured in these stocks no >> i imagine there is going to be loss of business, for sure. and i think a lot of those policies that they're instituting are certainly appropriate considering, you know, what this virus is we haven't even really put our fingers on it yet. considering what's happening over in china, the policies are appropriate. yes, will there be a hit to some bottom lines yes. but i suspect it will be shorter term think about what sars did in february of 2003 12% came out of the market during that time period we were graping with sars and what is it and how bad is it going to be? certainly there were other economic issues around it basse baited those moves my sense is if we keep negative

headlines and talking about how it's going to affect global economy and individual companies, we'll see that same type of selloff. partly also because i think the market was a little bit fluffy it was too -- it had gone too far too fast i expect with the negative headlines this will happen yes, some loss of business, for sure will it destroy company earnings it's hard for me to believe that. >> we have breaking news crossing that we are getting word aboeing plane operated by afghanistan's state-owned airline crashed in the country's central ghanzi province. shares of boeing are under pressure, just under 2%. boeing, of course, putting pressure on futures. we know it is a key component to the dow and it has been a big talker for the markets of course, as we've been moving forward with the 737 max plane developments, will it be recertified mid-year, will it not?

if i can use this moment, kenny, to talk about boeing and not at all to lessen the severity of the idea of another plane crash here, but if you're sitting and watching shares of boeing, how in the world are you making sense of all of these headlines that are coming at this very important company? >> i think it's confusing, at best, to make sense of any of the headlines. with earnings coming out this week, the speculation is what we're going to hear from them in this earnings call will we learn something new? will they divert the conversation away from the max to the 777 they demoed on friday are they going to create a more positive story everything that's appropriate. today's headline, i just heard it when you said it to me, is not going to help that conversation for boeing. on top of a day that's already down, on top of a day seeing global markets under pressure, that headline is certainly not going to help boeing therefore, boeing being such a large part of the dow is going to put more pressure on the dow

and the s&p. but it's going to be difficult until you see what the -- what the cause of that crash was. was it, in fact, just pilot error or is it, in fact, another problem that's going to be very specific to boeing as the news comes out, you and i would be able to have a better conversation that >> absolutely. let's take a look at some of these other earnings names reporting before we move on. really, really big week. we'll hear from apple, we'll hear from facebook, caterpillar, mcdonald's, starbucks, so many others any opportunities you see here, which ones would you be watching most specifically for investors to make a little money here, especially as some of these names have run really far relatively quickly >> i actually wouldn't be surprised. any earnings coming out tonight, whether or not they beat or not might see pressure because of the overall tone one that will be curious to me -- certainly caterpillar will be curious because it speaks

right to the industrial global economy. that will be one to watch. but apple, apple has gone straight up. it was up 130% on the year from january 19th to today. it's up 47% in the last quarter alone. the pressure is going to be on they're a $4.1 trillion company. the pressure will be on to hit every metric as the market investors expect if they miss anywhere, you could expect to see a reason for people once again to start to take money out that being the case, i think that then presents its opportunity because apple is one of those names that should be a core holding in your portfolio i don't think people should panic about it you'll get the trading types trading in and out the long-term investor, buy the news, sell the rumor type of event. it will be those opportunities, whether it's ge, because i like ge as well and caterpillar tractor and apple, i think you have to watch those names because i think

those are all core names and siee how they react to the earnings announcements putting in perspective where the market is, the tone of the market today, might actually provide even more opportunity. >> that's right, kenny as you're speaking, we are seeing both of those names under pressure apple down by more than 2% and ge down by almost 2% kenny, thank you for being up early and being with us here this morning >> thanks. coming up, housing set to be in focus this week as we await a number of key reports on the sector the ceo of one of the country's top mortgage companies explains the trends he's seeing when "worldwide exchange" returns how's the it department liking the now platform? every time it takes care of something for us, we celebrate. how often does that...

got it. servicenow -the smarter way to workflow. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere.

prevagen. healthier brain. better life. woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. talk to your advisor or consultant for investment risks and information. welcome back to "worldwide exchange." futures under pressure down by more than 420 points we seem to be accelerating the losses as the hours wears on we're less than a week until super bowl sunday, one of the biggest and most lucrative sports in the world. the game and the sports industry

are facing a growing challenge diana olick reports as we talk about rising risk to the real estate market from climate change ♪ >> reporter: on super bowl sunday, about 65,000 fans will stream into miami's hard rock stadium to watch the biggest battle in football but the very venue in which they're cheering is already in an epic battle all its own. >> the last three years in september we've had climate issues >> reporter: tom gar finkle is ceo of the miami dolphins which just paid $500 million to renovate the pen-air stadium. >> we had lightning we hadn't had in 30 years where we had delays. >> reporter: a random extreme rainfall produced these images from hard rock in 2018 that's just one stadium. in florida alone, the sports industry contributes $57.4 billion and 580,000 jobs to the

local economy annually according to a 2017 survey by the florida sports foundation. americanairlines arena, home to the miami heat, sits on the enl of biscayne bay. >> the arena would begin to flood with two feet of sea level rise about three feet for the hard rock stadium >> reporter: henry researches climate's impact on water. his thoughts on news of a major league soccer expansion team proposing a stadium near the miami airport? >> they are building in the future atlantic. >> reporter: the risk extends far beyond florida to san diego where petco park flooded and western michigan's stadium last june when record rainfall did this. to davenport, iowa, minor league stadium where rising rivers last may turned it from a field of dreams into a nightmare. >> every community that hosts a special sports venue is going to

be affected by global climate disruption, whether through storm surges, more precipitat n precipitation, wildfires, droughts. >> reporter: alan is environmental science adviser to the new york yankees, the first and only such known position in professional sports. he also advises the mlb, nba, nhl, usta and major league soccer. >> we're dealing with very large real estate infrastructure investments, regardless of who owns them, they are going to be effected. >> reporter: as a result, the sports industry is actually one of the most aggressive in going grown. that sends a powerful message because while very few people follow climate science, the vast majority of americans follow sports >> no one looks at the new york yankees and thinks they're a left-wing radical organization. >> reporter: the yankees, among others, are investing in carbon compensation projects and most teams are now reducing their carbon footprints in their stadiums this year the dolphins fins are eliminating all single-use

plastics cups will be aluminum. >> when sports can pick something up, you're really hitting an audience that's very broad. if it impacts sports, it really just makes it that much more important. >> reporter: stephen ross is owner of the miami dolphins and chairman of the related companies, one of the nation largest real estate developers as owner to a team, do you see any risk to your investment with climate change >> oh, yeah. if we don't do something now, we're looking into extinction. these are our issues that have to be dealt with today. >> when the sports industry first started its greening programs it was to reduce the cost of energy, which also resulted in reducing greenhouse gas emissions. as to why they keep building stadiums and arenas on the water, professional sports needs to be where the people are even with all of this risk, the fastest areas of the country in terms of real estate development, are, of course, on the coast. >> if they continue to build on the coast, what can they do to

mitigate these problems? >> the oakland a's proposed a stadium on san francisco bay they'll raise land levels, plant green areas and then you built this a island of resilience. if you have a stadium that's there and working, but how do you get to it if there are floodwaters? >> fascinating stuff this week is a big one for the housing sector, a busy one for you. we'll get new home sales figures for december as well as figures from d.r. horton wednesday we'll get pending home sales. on thursday it's housing vacancies. i'm join the by ceo and president of united wholesale mortgages. matt, thank you for being with us first of all, i know this may not be your exact area but i'd love to get your take on diana's story about the rising risk and issues about -- let's say just

say building on the coast, if it's not sports stadiums in particular. >> obviously, climate makes a difference it's interesting to see -- i didn't know that as much before watching or hearing that story, but definitely impactful as people are building on the coast, whether it's housing on are stadiums, all those things could have an impact definitely something people are watching we'll all watch in the housing and real estate industry across the industry. >> diana brought to us earlier in this year all of these strong numbers for the winter housing market and i know that's still going on she's talked about how it's it's shifted the buying season's peak season potentially from the spring into now because of this tight housing supply what are you seeing right now in the housing markets in the united states >> we see a strong housing market afford act is the key. low interest rates and housing appreciation has gone up but not at the same pace as interest rates have gone down

we're seeing strong market not only in refinances but purchases. i know inventory is tight, millenials are buying. it's been a strong start to the year stronger than most januarys we've seen in yaoers. >> matt, i'm interested in what you think about mortgage availability in this year. we did see a change to fico scores last week where there's plenty of demand out there from millenials a lot say, look, it's too hard to get a mortgage. they have credit problems. where do you see that going? >> actually, i think that's changing the change to fico are positive. if you have a 690 credit score and you should have a 710 or 720, you'll get lower rates and lower fees i think mortgages are getting easier and faster, especially working with ab independent mortgage broker you can shop on yourself people try to do it themselves that's not how mortgage works. the fico change will help more consumers than hurt. and i think finding a mortgage broker that can shop on your behalf will be a real win and i think it's going to be a strok year for housing. >> you mentioned earlier the

millenials what is going on with the millenials and home-buying trends as we get older and we have more children and we're moving into sort of this next phase of our life. >> everyone's been saying, where are millenials going to buy? we're seeing that happen as the millennial age gets older and people are buying houses, starting families. because of some changes to the mortgage rate -- you said it's harder to get a mortgage it's easier now. well qualified buyers can get in and lower down payments. people think i have to say 20% and go through this tedious process. that's not how they work you can close loans in 10, 15 days, 10%, 15% - >> we're not going back to the future, we don't want to see the no down payment, the no doc loans, right >> no, these are fannie mae, freddie mac. strong borrower, well qualified

getting mortgages and it's not not as xlibted as you think anymore. >> thank you for being here with us we'll wrap up the housing discussion for now i'm sure we'll speak to you both in the future. former nissan ceo carlos ghosn may hear about his future. ghosn has accused nissan and japanese prosecutors of conspireing against him under suspicious that he was planning a full merger of nissan and renault months before his arrest >> he was making clear moves to bring the companies closer together and set up a more permanent full-fledged merger versus just an alliance. >> reporter: ghosn, though, says he had a different plan. >> i propose a holding company where you have one share, that's what i was reporting it was not a full merger nissan should continue to be nissan, renault, renault heech one with a headquarters

but there's a way to make it in a certain way lasting in the future independent of me. >> reporter: ghosn never had a chance to reinforce the alliance a few months later he would find himself behind bars, the start of a saga that would end with a middle of the night getaway spanning continents and capturing the world's attention. >> hear more from carlos ghosn, including new details of his spe spectacular escape during "fugitive ceo: the carlos ghosn story" "that's tonight at 10:00 p.m. on cnbc. on deck, the latest on the trading day ahead as futures point to steep losses on those coronavirus fears. we're down more than 450 points on the dow also news that a boeing passenger plane has crashed in afghanistan. you can always watch or listen to us live on the go on the cnbc app "worldwide exchange" is back in a moment o bi-flex,

to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. looking to get your business off to a fast start in the new year? it's go time! switch to comcast business and get fast internet on the nation's largest gig-speed network. plus, complete reliability with 4g lte backup. and, cloud-based security to help protect the devices on your network. greenlight your business in 2020 with fast internet and voice for $64.90 per month. switch now and get a $100 prepaid card when you add comcast business securityedge. call today. comcast business. beyond fast.

u.s. futures facing steep losses as concerns continue to mount over china's coronavirus outbreak the dow jones industrial average pointing lower by 450 points at this moment. the nasdaq is down by 181 points i am joined by chad morganlander, portfolio manager at washington crossing advisers and chris campbell from dunst and phelps institute it's a very busy morning thank you for joining us chad, i will start with you. what do you make of the pressure here today it seems like a lot of others are saying, look, this is the coronavirus, but it's also temporary. what's your read >> that's the hope, that it is temporary and history has shown it is temporary. with that said going into this,

there were large expectations for an increased acceleration of global growth. that is going to actually be tempered down quite a bit. also keep in mind that market multiples, valuations, have been exceedingly high at roughly about 18 times pe multiple we believe going into this year, investors should be a little more balanced in their portfolio. they should be a little more circumspect about global growth expectations. >> this comes at a time when chinese markets are closed because of the new year and now they are closed with the virus, shanghai disney, restaurants, movie theaters are there any indications we should be watching for the market and just as concerned individuals, this may not be so temporary. >> i think we're looking at any travel and tourism stock

again, i think as the movement of people happens, chinese new year when they typically travel the most, this is a bad time for an outbreak to happen. as we see the virus continue to mutate and multiply, it will have an impact on the economy. however, we think the fundamentals of the u.s., especially the u.s. economy, are strong going into the fed, the fmoc and other things, we still see a pretty strong economy going forward. >> does this present at all an opportunity, without sort of dampening the seriousness of the virus? >> i think some people are taking some profit share right now, using this as an opportunity to do so this is no way diminishing the real economic and health impact the virus is going to have equities have been overpriced. there may be profit taking going on and resetting of the markets. i think going into the fmoc, we

see china phase one trade deal, the brexit happening and parenthetically our firm did a study and suggests that new york has overtaken london as the financial center overall the fundamentals of the u.s. economy and u.s. consumer are going to continue to be the economic engine for the world in the short and near term. >> if i can get your take on other news of the morning. moments ago we heard reports of a boeing airport that has been downed in afghanistan. just another potential issue for this company to overcome we know they did get the 777 max off the ground in that test flight that's potentially good news an awful lot of cross-currents and it's important as a dow component. how should we evaluate the move in boeing, down 2% this year. >> awful story human tragedy. it looks like it's going to be

in the penalty box for several more months overall. when it comes to industrials, they'll be tied to global growth we are overweight industrials at this point in time with that said we don't have such an economic forecast at 3% where the im if. is at 3.3% overall we're recommending to investors today is that you overweight health care, overweight consumer staples, you have good quality companies in your portfolio, well capitalized with not a lot of debt on your balance sheet. we would underweight or limit exposure to the emerging market side and have some development overall. the overall asset allocation would be long the dollar at this inflection point at this cycle. >> before i move on to you, i want to note that the ceo of afghan airlines is denying it's one of his planes that has gone down in this reported accident

boeing shares are down by 2% chad brings up emerging markets. it's went an interesting point for many guests and strategists on cnbc. they say, look, it needs to catch up there's opportunity there. you're saying not so much. what do you make of that >> actually, i agree i think i would go long on the u.s. looking internationally, it's hard to see where the growth is going to occur there's still negative interest race almost everywhere and not a lot of innovation. and then the compounding challenge of the virus and other issues, brexit has to work itself out i'm very, very strong on the u.s. market and u.s. economy and u.s. consumer. less so internationally. >> so, the thing about the emerging markets is that china has been the global engine of growth overall for the last five years. and that's been based off a massive amount of credit growth.

with any deceleration of credit growth there, that has a meaningful impact on the demand curve, not only for commodities but overall for global trade we believe they will continue to decelerate we're not anticipating a hard landing. overall we think it will have a meaningful impact on global impacts not just this year but the next three, five years >> there's a lot to go over, but if you were to pick out a couple highlights for investors, what should we be watching? >> look at the tech sector i think it will be the one most people watch because i think it's the one that could perhaps be the most volatile i would look at the tech stocks. >> absolutely. and i think apple is going to continue to be one we watch because of the size of that market cap, the weighting. gentlemen, thank you for being with us today. chad and chris that's it for "worldwide exchange." futures still under pressure "squawk box" is going to pick it up "squawk box" begins right now.

good morning futures pointing to steep losses at the open amid growing fears over the coronavirus that outbreak is expanding as another case here in the united states is confirmed. and the death toll in china is climbing we're live in beijing with the latest breaking economic news and some other news as well. officials in afghanistan say a boeing plane crashed in a province but ceo is denying those reports. boeing shares are falling. we'll talk about it. people around the world are paying tribute to kobe bryant after he was killed in a helicopter crash a real tragedy unfolding yesterday. it's monday, january 27, 2020. "squawk box" begins right now.

good morning welcome to "squawk box" on cnbc. we are live this morning at the nasdaq market site in times square in from davos, switzerland. becky is off today our guest host this hour is cnbc contributor ma chel caruso-cabrera. >> welcome back from davos. >> thank you >> u.s. equity futures at this hour joe said it, davos top dow looking to open down close to 500 points. down 490 points -- 493 points right now. s&p 500 looking to open down as well, 56 points down nasdaq looking to open down, about 196 points all on this -- all on fears of coronavirus and there's lots of factors at play. let's show you treasury yields this morning and