good morning it is 5:00 am here is your "five@5." coronavirus continues. death toll continues to rise companies are warning against travel to affected area. giving wall street new hopes lifeline for boeing as they expect a bigger than expected lending package. and apple is set to give first

quarter results today. "worldwide exchange" begins right now. >> good morning and welcome. i'm in this morning for brian sullivan u.s. stock futures looking to claw back some gains this morning after a wild day selling started early. it never let up with the dow ending down more than 453 points all told, the blue chips and s&p 500 saw their largest ju one-day losses since october the dow is now negative for the year among the hardest hit names, apple with huge exposure to china. it ended the day down nearly 3%

taking 63 dow points with it this morning, it is higher by 0.8% airline stocks united, delta, american, with the latter sliding 5.5%. gaming stocks, those names also down watch names like las vegas sands, wynne resorts crude oil taking it on the chin. oil still down again this morning below $53 for wti crude. down about half a percent. that down day for wall street did spark some massive selling overnight in asia. markets looking to catch up after being closed for the lunar new year markets in main land china are still closed europe looking to rebound as well we've team coverage for all of your market action matt is in singapore and

joumanna in london matt, we'll go to you first. >> you mentioned the china market closed now until third of february a number of markets, as you point out, playing catch up. it was brought on by the weakness in asia pacific the tokyo market losses a little more contained down around a half a percent in australia, down around 3% sliding oil price impacting that market new zealand down south korea was down by 3% to post its biggest one-day fall since october of 2018. you mentioned some u.s. airline stocks take a look at asian airline stocks quanas down about 5% korean airlines off by 7%. asian airlines 5% and singapore

airlines off by 3% cosmetic makers a big decliner these companies depend on chinese visitors declines in the order of 11% and 15%. but hand and face mask producers were two big names surging you can see both of them up in the south korean trade up 29% in today's session. back to you. >> thank you let's head out to london with joumanna bercetche >> thank you, courtney you can see we have a bit of green on the board this is in stark contrast to the performance we had yesterday the weakest day for the stoxx 600 in months. we have seen some positive sentiment emerging the ftse 100 up about 0.1% basic resources. right at the bottom, we are

seeing an underperformance of some mining names. auto is in focus here. daimler, bmw are some of the names and of course lufthansa trading in the red as well cac in france up about 0.1%. let me show you names that have exposure to the coronavirus and have been underperforming. minors in the uk trading in the red. bhp down 0.6%. the airlines, you can see in europe, we are seeing airlines come under pressure. klm, lufthansa down. another sector is luxury a lot of those companies produce and manufacture in france but

their biggest consumer customer is out of main land china. roughly 30% of overall sales kering and hermes and lvmh will field a lot of questions today about the coronavirus. >> thank you asia and china specifically is very important for lvmh. growing fears around the world to the coronavirus the number of those affected and the death toll rose overnight. >> quickly developing. the total known cases spreading across china increased nearly 60% overnight to more than 4,500 cases. china has upped the death toll to over 100. the numbers now prompting

companies around the world and facebook and others to restrict travel to china. hong kong will reduce cross border travel include ug suspending train lines and cutting back cross-boarded tour buses, ferries and flights it is kremed to avoid all not essential trips to china despite all of this, the leader of the world health organization adds that he does not advocate the evacuations of foreign nationals. the number in the u.s. still stands at five >> many officials in china are trying to decide if they should stay or come back. it is tricky >> it seems like the many he had call community is still torn but what to do >> thank you for more on the market reaction.

we'll bring in mark, president of patomac advisors. look at the market and that red. we had the worst day for the nasdaq since august. today, looks like the futures are up is that it >> this morning's hint of green is positive. it shows panic hasn't permeated throughout stock market investing. that is good news but we are definitely not out of it so the news about restricted travel and companies not traveling to china the suppression and ability for people to get together to celebrate new year's holiday all of this is going to bring down economic activity it will impact gdp and earnings. stocks will feel it. largely in the travel sector

you mentioned that earlier we'll look at restaurants, gaming and hotels as sectors that will feel the brunt the overall market remains strong the fact that futures are looking higher says we are not having as much panic and that we are looking at this realistically and picking the areas that will get hurt worse >> when focusing on travel names or casinos is it big enough that it is going to take a material impact out of those company's quarters or is it just a little fear selling, profit taking on the possibility of getting worse is this a real material problem for these companies? >> that's the real question. i was looking at how long will this virus last.

is it a seasonal thing that can fade i'm not enough of a medical expert to know if this is a few month virus that people can contract people are dying and getting sick from it we can see, it is a several month event that will be more like the flu where, hey, over 60,000 people die of the flu and no one is going out. we know it can be some what treated. if we can get the coronavirus in our minds to be perceived like a very serious flu, then the panic subsides and these stocks don't have to hit the bottom it looks like there is a little panic now. >> if you are an investor that didn't pay super close attention

but saw those big red arrows by the end of the day you are getting ready to position yourself for today. right now, indications are that we are going to open higher. what is your message to an investor the same as yesterday. if you are a trader, you might want to be active and listen to the weaker sectors and make the position into those. if you are a longer investor, i think you want to sit tight here green arrows today would be proven correct with valuations the way they are, other unexpected events can happen how they could impact the market that is overvalued we have to stick with some headlines and remember to build their risk allocations before

these events happen. when they happen, they happen fast and you don't want to be in reactive mode. >> thank you for being with us today. >> always good to be here. when we come back, the top corporate stories including word that the justice's deposit probe into facebook is gaining steam are you looking for safe spots for your in investments? only 6 of the 11 sectors are positive for the year. the best performer, utilities. a very bushoy ur still ahead when "worldwide exchange" returns.

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welcome back if you are just waking up, futures are pointing to a higher open pointing to a higher open to the tune of 67 points the nasdaq indicating a higher open by 37 points. s&p up nearly six points after quite a selloff that saw the dow and s&p post their biggest losses since october the nasdaq posting the biggest loss since august. the best performers of industry and tech were the biggest. boeing has secured more than $12

billion in financing to help weather the crisis surrounding the 737 max planes bank of america, citigroup, jp morgan and others have agreed to secure the financing boeing will report earnings before the bell tomorrow you don't want to miss boeing's new ceo tomorrow on "squawk box" at 8:00 a.m. meanwhile, arconic is reporting job cuts it expects to lose $400 million in sales due to the boeing plane troubles shares of airbus are higher after it agreed to a settlement into allegations of bribery and corruption the plane maker has been invest gated over french and british corruption dating back over a

decade the u.s. launched a probe into the company over suspected violations of export the department of justice's antitrust probe into facebook is reportedly gaining momentum. the department of justice is setting up interviews with rivals of the tech giant as part of that investigation. officials are looking to learn about the competitive landscape of the industry along with the c company's perspectives on with and relationship with facebook the good, bad and ugly stocks to watch this morning first, a check on the worst performing sector this year. energy it is down more than 8%. stay tuned to "worldwide exchange" on cnbc. >> announcer: today's big number, $51.15 billion that's how much the market cap

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brands hiked prices twice last year telling cnbc, the company will maintain those higher prices >> yes, we've seen some relief on raw materials and it is coming down. we are far away from having eaten into that high increase. we have to maintain prices ynow. that allows us to be mixed in a highly competitive market. shares of sap up today raising guidance for operating profit this year after fourth quarter results were in line with analyst forecast. cloud revenue came in below expectations and sap is producing outlook for that phillips fell. shares down more than 2.5% the company will explore options

for the domestic appliance business which generated sales of more than $2.5 billion. still ahead, other headlines why nike is halting the sale of kobe bryant merchandize in the wake of his death a higher open across the market for the dow, s&p and nasdaq "worldwide exchange" will be back in just a moment. high protein low sugar tastes great! high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets

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looking at a beautiful shot of washington, d.c. early in the morning. 5:24 a.m. on the east coast. let's check on other headlines with frances rivera in new york with the latest. >> good morning. another landmark day ahead in the impeachment trial of president trump. opening arguments. focusing today on the bidens overshadowing the proceedings is a bombshell from a book by john bolton saying he told bolton the freeze on ukraine was tied to democratic rival

later today, president trump is expected to announce details of his anticipated middle east plan touting it as the deal of the century saying it will end decades of conflict between israel and palestinians. nike preventing resellers from hording kobe's shoes. a search for his merchandize redirects. still on deck, futures are looking for a little bounce. don't be fooled. there are still growing fears over the coronavirus outbreak. we'll go around the world for how markets are responding to

this there is more ahead on "worldwide exchange. got it. servicenow -the smarter way to workflow.

stocks are fighting to recover after suffering heavy losses on coronavirus fears. we have complete team coverage of the global markets and investment ideas to make money amid the turmoil the outbreak of the coronavirus growing in china as the death toll and the number affected climb. we are live in beijing with the

latest tech stocks are some of the hardest hit yesterday. we have you covered as the second half of "worldwide exchange" starts now welcome back i'm in for brian sullivan this morning. here is how stock futures are looking. after a wild day on wall street on monday. right now, the dow jones is higher yesterday, we do end the day down more than 453 points. blue chips and s&p 500 saw the largest one-day losses since october. nasdaq seeing its worse day since august the dow is now negative for the year among the hardest hit names, apple. it ended down nearly 3%.

higher by about 0.9% right now apple took 63 dow points with it on the down slide monday airline stocks united, delta, american also falling. american down 5.5% on monday gaming stocks too. major exposure to those asian markets. you'll want to continue to watch names like las vegas sands, wynne, mgm caterpillar. this is a known bell weather for global growth. gained back just a hair this morning just over a 0.1% crude oil below $53 a barrel for wti crude down a half a percent. with he watch that for signs of concerns about economic growth around the world a down day for wall street

sparking massive selling in asia as markets look to catch up. in hong kong and china are still closed we have team coverage from around the world this morning. matt taylor is live in singapore. joumanna bercetche live in london and eunice yoon has the latest on the coronavirus and latest response from beijing matt, we'll begin with you thank you, courtney. china markets still out of play until third of february. hong kong coming back on line tomorrow broad base weakness across asian markets. australia was shut for australia day. singapore for chinese new years. japan held up okay we did see safe haven in the japanese yen it also negatively impacts the japanese market. up there about half of 1%.

resources heavy down 1.3%. new zealand down just over 1%. fairly sizeable fall there we did see a lot of damage in the south korean market. down by 3% the biggest one-day fall since october. you mentioned some of those airline stocks big decliner around the region quantas in australia down about 3% the biggest decliners coming through. korean airlines down by 7% asian airlines off by 5.25%. fairly big declines in travel related companies. travel and gaming you mentioned state side back to you. >> thank you for wrapping all of that together as well. >> we'll head to london with joumanna bercetche the picture in europe is a little different than in asia. we are seeing a bounce this

morning with a little green on the board among all of these individual boards. yesterday, the stoxx 600 put in its worse performance in six months with all sources connected to china like luxury trading do trading south more than 2% the ftse is up mildly in the green. we are seeing some of those mining names the dax also down. auto down, bmw and daimler down about two percentage points. cac in france up about 0.01% point. let me turn to the sectors this morning, so we can break it down

it is pretty much mixed. tech underabout 0.1% still no love for the oil and gas sector that continues to struggle and has been the last couple of days up at the top, we've got banks and utilities, telecoms. no surprise defense is doing well here. the bigger picture for europe is that we are seeing some what of a relief rally this morning. >> thank you, joumanna reaction around the world linked to fears of the coronavirus. the total known cases of the coronavirus spreading across china increased nearly 60% overnight from 2,835 to more than 4,500 china has upped the death number

as well. the growing risk prompting governments around the world and companies like facebook, lg and others to restrict travel to china. the cdc issuing travel warnings saying that they avoid trips to china. the leader of the w.h.o. adding that he does not advocate the evacuations of foreign nationals. the number infected in the u.s. still stands at five we'll go to eunice in beijing. >> good morning, courtney. security in beijing is becoming stricter about people wearing masks. you cannot board a subway train without wearing them officers are wearing full hazmat

suits. they are taking temperatures of people boarding the train. if you turn out to have a fever, they send you to the hospital to be quarantined the number of cases appears to be leading the government to step up efforts to prepare for the increase of the number of patients as well as medical needs. reporting that beijing and the central chinese city of zhengzhou has downed wuhan with the prefabricated hospitals. these stepped up measures are coming at a time where there has been quiet public criticism on line they know they cannot openly criticize the leadership here

especially president xi jinping. people have been posting positive comments about previous leaders and the way they handled past disasters such as the earthquake in 2008 all of this as well as the concerns about the virus have created a lot of confusion among companies about what they should do chinese tech companies have said that they are going to return to work on february 10 having their people work from home in the days before that still a lot of questions as to exactly when the virus is going to be contained. >> we can see you are wearing a mask you said it is required of those on subways you are in beijing is everyone doing it now is it a requirement? >> it is a requirement for the subway at this point but it is

very, very had he haveeavily en for everyone in beijing. for the most part, everybody is wearing masks. even yesterday, when i was reporting really early in the morning, everybody that went by were wearing masks this is not necessarily a requirement but people are putting on the masks because they are concerned about gathering in public places and being the one that wouldn't be wearing a mask when this virus appears to be so contagious. >> thank you you keep yourself safe as well volatility in the markets are causing concerns for some. our guest tells cnbc that he welcomes a pull back >> i thought in the early part of january, the market was

getting dominated by momentum players riding the trend we had an incredible string of days -- i think this is the first one we've had a 1% move in the s&p in months. it is good to get a reality check. there is really nothing going on that could keep on forcing that market up at that level. in a way, this is a healthy check. >> for more, i'm joined by the senior equity strategist at credit suisse and director of ass asset management after a selloff yesterday, the worst day we've seen for the dow and s&p since october and worse day for the nasdaq since august. many say it is just an excuse to sell off we have gotten perhaps a little

frothy why does the market sell off on these things if we know they are short term i think what people are trying to understand is what is trans-torry and what is permanent. if a company is going to buy a piece of equipment, if they can't buy it today, they'll buy it tomorrow to meet that demand. there are things that are going to be lost like around the chinese holidays, if people aren't traveling, those are more porm nent impacts. investors are trying to understand what is permanent >> as a follow-up to that, things lost like travel, should investors remain cautious there? >> the question is does it

ultimately damage those, people need to take time to understand the impact or is it going to be a prolonged period of time it gives investors time to understand the gravity and how the spread is happening and where that impact can be delineated as next week or next month activity >> as you look at this market today and see early indications that we'll gain back some of what we lost yesterday, what is your best advice for investors and wake up a little nervous about today? >> my advice going into this year was don't get too cocky there was a boyancy.

suggestions this suggestions that it will come in below the market at 2% the market is behaving as though we are on the verge of a turnaround things like this virus, i think there are catalysts to cause people to take another look and say what are the down sides as well as the upsides? i 2 i thinks that what we are seeing here >> we have a very big week of earnings to come what would you tell investors about what to do here? we've seen utility sector have the strongest performance so far. is that where you should turn here >> investors will have to think about anything that has exposure to china in particular, not just chinese spending but supply chains i was talking to somebody in the

pharmaceutical industry yesterday saying that u.s. pharma companies rely on chinese suppliers for certain chemicals. they had already factored in the usual disruption by chinese new year but if these closures, transportation bans continue for more than a week, you could see shortages in those areas i think without getting into s hysteria, people need to think about the dislocations that this is likely to cause >> got it. quickly, i'm hoping you can give us a couple of good ideas today? >> i would say technology. focus on that group. we expect earnings to accelerate from 2019 to 2020. technology is the place to focus

on >> winners keep winning in your opinion. thank you both for joining us here let's look at some other top stories we are following with rahel solomon. boeing's former ceo is losing another leadership position muilenburg is retiring from caterpillar's board saying it was not due to any disagreement with the company >> jp morgan employees will not receive any bonuses this year. keeping pay flat this is despite the unit seeing its best year since 2011 they brace for an increase in pay outs

jam jamie dimond seeing an increase to his pay >> data from the government showed the messaging app showed vulnerabilities marking significant jump that saw one or two issues the report comes amid scrutiny of alleged phone hacking of amazon ceo jeff bezos. thank you. we have more on the coronavirus outbreak we have more on the second largest economy coming to a halt are you looking for safe spots for investments. 6 of 11 s&p sectors are positive utilities the underperformer technology runner up

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the financial impact of the coronavirus outbreak could be significant especially for the chinese economy facing losses in tourism, travel, retail and entertainment as the country is already struggling with the weakest growth rate in yearly 20 years. joining us now, our guest. thank you for joining us how can you size up the potential impact of the coronavirus on the world's second largest economy >> there is so much uncertainty. it is hard to say how long will the impact be? looking at what happened in 2003 with sars.

it was tourism, retail, restaurants that were hit hard it knocked about 1% off chinese gdp growth that is a useful ballpark figure for what we think will happen this time around as well >> at that point, looking a little different now it looks weaker now. what about the fact that it happens during a lunar new year time when people are used to spending and traveling does any of that get made up or exacerbate the impact? >> i don't think that would happen at a worse time the fact that this happened means there was a risk overall that bounce will be hit quite hard it is impossible to tell for a

couple of months how big the impact will be it feels as if it would be sizeable >> you probably know many are skeptical. do you feel we can trust the information we are getting now with how many are dealing with the spread of this virus >> i think you can get a lot more when the chinese were criticized for trying to hush up the virus. the chinese authorities have been commended for being so open and honest there is so much unknown it seems likely the numbers will shoot up the chinese have very little to

gain by being so quiet we have big question marks over the reliability of the data. i don't think we'll make any special effort to try to hush up the extent of the impact this will have on the economy >> thank you for helping us to size up the impact this is changing and morphing as we move along. on deck, apple is set to report earnings as requests arise about exposure to china. we'll tell you what investors need to know >> you can always watch or listen to us live on the go. we'll be back in just a moment 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.

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time for the recap

headlines you need antitrust regulators are reportedly investigating a potential impact of a deal between dean and dairy farmers of america a hacking group is taking responsibility of taking over sites of several envelop teams including 49ers and kansas city chiefs. the figure that marks the increase of more than 10% of last year. adds that suppliers are warning apple the coronavirus outbreak may complicate that request. sticking with apple, the company set to open its books after the market close today stock up nearly 1%

high expectations over the 5g phone. not enough to protect apple and the broader sector down nearly 3% on the growing virus fears. taking note that china accounted for nearly 16% of apple's sales for 2019 tech coming off the worst daily performance since ago when it fell 3.3%. i'm joined by jason today. the firm is an investor in names like apple, alphabet, amazon and others when apple reports after the bell, no doubt folks will be focused on the impact. we won't be able to likely capture the next couple of weeks. what else will we be looking

for? >> a lot to impact this quarter. you noted the iphone and china wearables will be one of the areas investors are focused. we are looking up north. certainly outside of that, we have iphone 11, the first full quarter of information there investors are already looking past 11 towards 5g i personally have a 10 and i'm waiting for the 5g as well arcade, news, et cetera looking to track in particular what tim cook is saying about impact in this quarter as well as what could happen to the supply chain a lot to look to today >> looking to the broader tech

sector things have been running far with the big names and players apple is one of them shares up. what are you expecting what can you tell investors about the broader tech sector today? >> i would encourage investors not to put too much weight on any one quarter. look at the company, the path there on for amazon. that would be e commerce, cloud. for microsoft, it is cloud and azure. the rest of their business is growing at a good clip evaluating them is important the north star for investors to keep in mind expectations are fairly high

i think any pull back we get in these stocks assuming that the underlying reasons you own them could be in tact >> thank you for joining us. we'll have to leave it there that's it for "worldwide exchange" this morning "squawk box" begins right now. it does begin right now. good morning breaking overnight, the number of cases of coronavirus surging. some major companies are restricting travel to china. we'll take you live to beijing in united states, stocks set for a rebound. we'll get earnings reports from three dow components in the next hour and a lifeline for boeing. securing a bigger than expected lending package. it is january 28, 2020 "squawk box" begins right now.

good morning we are live from the marketsite in times square. i'm becky quick. u.s. stock futures looking to claw back some of the gains after a wild day yesterday selling started early, never let up the dow down more than 450 points this hour, rebounding slightly s&p up by 5. nasdaq up by 31. dow and s&p both had the worst day since october. looking at treasury yields people had those growing concerns about what happens with this virus coming out of china they wento