it is time for ire "five@5" virus fears taking center stage as the death toll numbers rise wall street on earnings alert as it prepares for the busiest day of the season. nearly 50 s&p 500 companies set to report today. tesla surging past estimates pushing further as a result. on the flip side, investors

unfriending facebook as its growth slows to a crawl. it is thursday, january 30, 2020 "worldwide exchange" begins right now. good morning and welcome to "worldwide exchange. i'm courtney reagan in this morning. stock futures are pointing to a lower open after a down day yesterday. right now, the dow is set to open lower by 130 points we are off the session lows of the morning. this comes as investors prepare for the busiest day of the earnings season. nearly 50 s&p 500 companies are set to report including amazon, verizon, visa, coca-cola and ups. a flight to safety for the bond market yield 10-year note under 1.6% at

1.567% the 2-year at 1.477. we are watching crude taking a turn for the worse wti is under $53 a barrel. trade being felt worldwide with asian stocks falling deeper. pain being felt in europe in early trade. team coverage watching market reaction willem marx in our london news room matt, we'll start with you >> reporter: another sharply dropping day in asia the coronavirus numbers and death toll numbers rise. significant falls in tokyo and south korea, the yen around the 108 level.

shares of samsung reporting a 34% drop down 1.7% hong kong into correction territory. 711 points wiped off down 2.61%. the taiwan market resumed after the break saw the steepest declines down 5.75% prompting the president to say authorities will act to stabilize foreign markets intervening short-term stocks. we saw the thai dollar as well hon hai provisions off nearly 10%. saying it will keep production at china factory shut until february 10, it does have abilities to meet customer

demands. a lot of pain felt in this name today. that's the latest from asia. back over to you let's turn now to willem from london. >> reporter: you can see all of these major indices in europe, uk, france, germany all in the red this morning looking at some of the individual sectors to get a sense of where that pain is being felt the most. oil and gas down 2%. with he saw the report about reserves in the u.s. having an impact telecom down, technology down 1.2% retail up around quarter percent. we saw good numbers from h&m that might be helping out. utility is about flat line industrial material, media in the red. you can see the market is taking a bit of a lead from asia. >> thank you

we look at that early action in europe this morning's action around the world tied to concerns about the growing spread of the wuhan coronavirus with the death toll rising case is he kate is here with more information. the number of people infected jumping overnight to more than 7,900 cases. the death toll rising. stating 170 people have died up from just 24 hours ago. this as tib et and india are reporting their first cases. the world health organization will meet to discuss declaring a global health emergency. yesterday, fed chairman jay

powell expressed concern over the virus. >> it is a very serious issue. there is likely to be disruption to activity in china and globally, travel restrictions and business closures that have already been imposed the situation is really in the early stages it is uncertain how far it will spread and what the macroeconomic effects will be in china. >> on edge also, amazon ceo, amazon is restricting employee travel to china until further notice solomon said he's also concerned. >> we are very focused on it we have a couple thousand people in the region. we are very concerned about those people, their families, et cetera it is too early to say where this will go we have a lot of people working from home and we are restricting travel like many companies

we are watching closely and concerned for our people >> two major names restricting travel we'll have more on this. thank you. for more on the global markets reaction, i'm joined by president of leven easterly. monday, we started under pressure, tuesday, things felt a little better. so now why why do we become unworried as the day or two passes. >> thank you, courtney i think you are starting to see in some of the earnings reports where we are citing the coronavirus as an issue. the global economy is very connected. whether supply chains in china or travel industry, you are starting to see it come into guidance as people are starting to look towards 2020 earnings.

>> the w.h.o. is meeting again today. we don't know a lot either do you think this fear is warranted? we don't know how long it could last or the ripple effect. does it feel right that stocks are selling off on this? >> the issue is very scarey. you had a comment from the fed it is too early to tell. it could have a ripple effect throughout supply chains all over the world whether at apple supply chain or on the semiconductor side it could affect companies. the chinese consumer, most of them are staying home. the lunar new year is being extended we don't know how long that will be extended. it is hitting the consumer side

and those with presence there. including starbucks and mcdonalds. >> some companies reporting strong results, others not so much we talk a lot about those names because they just keep shooting higher tesla and microsoft hitting all-time highs are you worried about valuation or do you still see pockets of opportunity? >> in our firm, we are value guys we are value investors you've had almost a 13-year run on growth stocks in value. we are still finding very cheap stocks you've had a by fur indication that is the area we are playing in we are still finding with the market here, there are a lot of

stocks trading at 10, 11, 12 times of cash flow >> what kind of names are you looking at specifically? >> one of the names is dupont. ed green came out of retirement. he really turned around and cut costs. he came out of retirement to take over dupont merged with dow and turned it into different pieces. the science business, the dupont specialty business he's breaking this into specialty business >> you like this even though it is down 30% for the year >> yes he signed a deal to sell medical business parts there the rest of the business with the construction here is trading

below eight times and we think it should be much higher >> a couple others for us? >> love gm we think gm, you are not getting credit for the restructuring going on there and the cruise automation business which is driverless car, that does have valuation of $19 million we don't think that is reflected well in the stock price. >> gm shares down 14%. tesla is the second most valued automaker behind toyota. >> thank you for joining us today. when we come back, much more on the growing threat and impact on your money we have a live report from main land china one ceo pledging millions to help fight the virus morning movers and why elon musk says main street has it right.

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a morning of movers to get to including tesla the stock is urging. posted its first ever back-to-back net profits beats are helping justify the rise

higher than over 10% prompting musk to call out some of the haters. >> i do think a lot of retail investors actually have deeper insights than many of the big institutional investors and certainly better than many analysts >> he's never afraid to speak his mind arjun kharpal joins us with more >> reporter: that big move after hours is not just that tesla beat the eps but more about the excitement going into 2020 net income and free cash flow will remain positive a huge change from 2018 when elon musk said the company was close to collapse. they are remaining lean.

and on top of that is promising outlook for 2020 the company can comfortably exceed 500,000 units on top of that, the model y, the cros cro crossover vehicle will begin the first model 3s have been delivered out of the china factory. and the model y will be delivered out of there a number of risks. i want to give you a look at the stock up 120% since the third quarter earnings report. that surprise profit that means the company had very little room for the error. that will be a lot of watching about the promises of elon musk.

that goes with the coronavirus as well. >> unbelievable to see those shares close to $640 arjun, while we have you the other side of earnings is facebook that share said to sink this morning. we are hearing from analysts down grading to hold from buy and cutting the price target from $215. what happened here >> a pretty rough quarter. yes, it beat on revenue and eps but let's dig deeper costs balloons mainly because it is increasing its head count to deal with privacy issues on top of that, you had the operating margin for the year fall significantly you had net income slowing

revenue growth is 25% year-on year that is sub 30% growth which is the concern posting 40% to 50% plus some of the risk comes down to the regulatory point hit from a fine facing a number of antitrust probes increasing talk about more regulation around privacy and data in the u.s. on top of that is an election year facebook has decided not to ban political ads. it drew a lot from the company you can expect that given this year given the potential new regulations will be a black cloud over this company in 2020. >> absolutely. raising a lot of questions for us still on deck, the growing

coronavirus prompting airlines to take new steps to contain the spread we are talking about the threat one could possess to the industry's bottom line >> announcer: today's big number, $10.6 billion. that's how much market cap general election gained yesterday with the stock posting its best day since october the more you push yourself, the more confident you're going to get. and the more confidence you have, the more people are going to listen to you. especially as a woman in the industry. you need to actually just make sure that you push it. ♪ ♪ cisco. the bridge to possible.

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let's get a check on some other big stocks on the move microsoft's second quarter profit driven by the company's cloud business and strong sales of windows as corporate customers upgraded machines. shares higher by 3%. the competitor to amazon web services grew 62%. pay pal grew but outlook for earnings is below estimates. they've been spending on acquisitions and new technology to help fend off competition shares are down almost 4%. samsung's fourth quarter fell nearly 4%. the chip industry starts to pull out of a slump several drivers of demand are lined up including the rollout of 5g phones those shares are lower by 3%

align fell short tempering expectations due to the coronavirus threat align is forecasting lore revenue for china, which is one of the biggest markets shares down more than 5% coming up, futures pointing to another down day on wall street down 150 points right now as the death toll in china continues to rise how should an investor handle the uncertainty? 'lta portfolio protection when "worldwide exchange" comes right back how often does that... got it.

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oil prices dropping again as the coronavirus death toll rises. fears about slower travel and global growth. at 52.38 coming up, continuing coverage of the coronavirus and market reaction we'll head live to beijing we'll be talks about global airlines that are halting flights in and out of the country. att l talk to an analysts abou wh investors need to know when "worldwide exchange" comes back. the world is built for you.

so why isn't it all about you when it comes to your money? so. what's on your mind? we are a 97-year-old firm built for right now. edward jones. it's time for investing to feel individual. stocks in u.s. and around the world under pressure amid fears of the coronavirus outbreak china racing to contain the spread as the death toll climbs. we are live in beijing with the latest a tail of too much talked about stocks tesla and facebook make different moves following the quarterly results. the second half of "worldwide exchange" begins now welcome back

i'm courtney reagan in this morning. the dow jones is indicated lower by about 150 points. s&p 500 off by nearly 21 the nasdaq also lower. the dow is set to open lower it is off concession lows this morning. as investors prepare for the busiest day of earnings season a lot to go through. nearly 50 s&p 500 companies are set to report including amazon, verizon, visa, coca-cola and ups. the bond market reacts to what is going on with the coronavirus. we have the fed decision or nondecision yesterday as they decided to keep those rates unchanged. the 10-year is 1.567%. the 2-year is just above 1.4%.

crude oil down nearly 2% in the early going. again, worries about what is going to happen to global growth as the coronavirus continues its spread wti down to 52.33. that risk off trade is being felt worldwide asian stocks falling pain being felt in europe as well all of this as the number of people infected with the coronavirus jumped to over 7,900. all but 100 of those are located in main land china that has more affected than in the sars outbreak in 2002 170 people have now died from the virus. tib et, india and the philippines are reporting their first cases.

the world health organization is preparing to meet again to discuss declaring a global emergency. the u.s. government will arrange more evacuation flights for private u.s. citizens from wuhan, china on or about february 3 individuals will be subject to screening and monsterinitoring. they did not say how many planes they'll deploy or how many would be evacuate. willem and eunice with us. willem, take us through what you are seeing in the global markets. >> the nikkei in tokyo, the hang seng in hong kong and kospi in seoul. leading to sell off when it reopened after the lunar new year taiwan president saying the government will act to try to

stabilize stocks also saying they potentially helped some of the companies badly affected one big stock there in particular, hon hai precision known as foxconn the facility is closed they ship more than a quarter of its products to the u.s. that has made investors nervous. major european markets well in the red. london, the ftse 100 down 0.7% a lot of earnings on this side of the atlantic as well. beating expectations not seeming to have much of a positive impact here. >> wow, taiwan market down almost 6%. now to eunice yoon in beijing. break down some of the steps the

government is taking to help bolster the country amid this outbreak >> reporter: china is now offering about $4 billion in subsidies to medical workers and patients to get through this beijing will probably have sto do a lot more spending during this outbreak. the expectations around the economy are now starting to be revised lower because the coronavirus has reached a grip milestone. that is now that we have more confirmed cases than the sars outbreak in 2003 a government economist are now believing that the economy is going to struggle. what this academic said he believes q1 gdp could fall below 5% one research firm estimating that growth could drop to 5.6%

fich sees 5.4% to 5.9% the eiu sees a fall to as low as 4.4% for the year. the main issue is that china is relying more and more on consumption. this is a time when not many chinese people are out shopping or going to restaurants. they don't see exports saving the day. several more provinces who have been key to globe at supply chain are telling their companies to stay shut for another week or two. >> i was going to ask you if you have any updates or moving the time line at all when moving these facilities we were talking about some loose dates where these companies said stay home. work from home but don't come in here >> absolutely.

there have been several more announcements over the past 24 hours. these are provinces that manufacture or home bases for several industries from appliances, electronics, cars. because they are now expecting that they don't want workers to come in, that is going to put a strain on the export sector. >> thank you for continuing to follow this very important worldwide stories. as fears continue to mount, we are hearing more reaction among these voices, the fed during a news conference yesterday, chairman jay powell expressed concern over the virus. >> it is a very serious issue. there is likely to be some disruption to activity in china and likely globally based on the spread of the virus and travel and business closures.

the situation is real really ea. >> also on edge, amazon and others amazon is restricting travel to china. solomon is also concerned. >> we are very focused we have a couple thousand people there in the region. we are concerned about those people, their families, et cetera i think it is too early to say where this will go we have a lot of people working from home and restricting travel like many companies but we are watching closely and concerns for our people and doing everything we can to help and protect. >> we are seeing more airlines delta, american and lufthansa are adding to the growing number of list air carriers temporarily

halting flights to and from main land china we'll bring in our transportation analysts. it seems like the airlines are doing the prudent thing to keep everyone protected if you were an investor, should you be concerned >> i think mostly, you have to worry about the near-term impact when we look back to sars, 2003. these tend to be more of a one, two, three quarters. a couple of things to keep in mind one is the price of crude oil that has come down 10% to 15%, which is a big offset the airlines are seeing. >> that's true but from what i understand, the cost of fuel is

a percentage of total expenses is considerably less than it was a number of years ago. when you are looking at these individual names, are there names more susceptible to a potential down turn to this virus getting worse and flights getting canceled for the longer term >> for the longer term, i think it is anybody's guess. the first thing you look at is the exposure from revenue and how much seat capacity is going into the different markets in the u.s., united is obvious its stock prices reflect a lot of that softness in europe, it is about lufthansa, air france, klm these have been fairly weak as of recent. in united's case, they have a strong network across asia and they have a strong unity revenue

there. having a better business in asia is coming back to be a little worse for them in the short term >> we talk about lost business as a result of the coronavirus if you are a business traveler, do you put off that trip and do it later or is that a lost trip when you are thinking about the airlines and segments? is it lost for good or pushed further out? is. >> i think you do see some of a rebound after you see confirmation of a bottoming here or travel restrictions being pushed out there is going to be a little bleed in terms of the trips that some people make a lot of cases, to your point,

those trips do happen. it just comes a little later we saw that with sars. there was a bounce back in q3 of that year and little restrengthening into the fourth quarter. you do see a little rebound. >> thank you for joining us here today and helping us sort through some of these airline effects. we'll get a look at some of these airlines securities and exchange commission is invest gating nike over elicit payments a lawyer says the company made the payments to elite youth basketball players avenatti is on trial claiming that he was hired by a former youth coach and is accused of threatening nike of going public

unless the company paid millions to the coach and him and a colleague to conduct a probe of the company. a jury has ordered apple and broad come to pay caltech for infringing on patents. claiming that chips in iphones infringed on patents jaguar, land rover ceo is set to step down from the company. he will depart in september when his contract ends. he became ceo in 2010 will continue to sit on the board of the parent company and hold on to an advisory role as well. >> thank you coming up, a look at stocks to watch. another stock to keep an eye on. facebook is getting hammered

2308ing earnings details on what has investors selling that name. details when we return no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. 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

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shares of royal dutch shell trading at lowest level in two and a half years cutting fourth quarter profits in half. shell plans to slow the pace of the stock buy back and intends to complete the $25 billion program. unilever is launching a review of the tea business. saying the review was trigorred of declining sales of traditional black tea as consumers shift towards herbal teas deutsche bank reported a bigger than expected loss as turn around efforts produced earnings bond trading saw a 31% jump.

they say the cost cutting plans are on track and up by 2.5%. mondelez posting a growth. first quarter sales will likely be impacted by the coronavirus and it has temporarily closed two factories. shares higher by 2.6%. shares of facebook set to sink after posting the slowest sales growth down grading the rating to hold from buy and cutting the price target to $215 we have more on the move julia. >> reporter: facebook is under pressure because of the decelerating growth. this is the fourth straight quarter the company's growth is less they were 42% in the fourth

quarter, down from 46% and down from 57% two years ago ceo warned revenue growth will continue to decelerate in the first quarter. >> factors include maturity of our business and global impact and other ad targeting regulations. we have experienced some modest impact, the majority lies in front of us. >> facebook shares gained more than 50% going into earnings saying this is an expectations correction the recent rally suggested the market was looking for material upside and it didn't get it. mark zuckerberg focusing attention on the call that lies on commerce and payments to enable 134589 small businesses to better serve consumers.

>> joining me now, our guest thank you for joining us telling us they are posting this revenue growth yes, facebook is growing, right? you are not going to put up revenue growth of 80 perce% for. >> exactly they are a victim of their success. they are not going to live up to that growth a lot of investors have grown accustomed through. i'm a little surprised by the rosie, bullish spin they are putting on it. seeing something on it it is a dose of reality. expectations were elevated in the print.

we heard the audio clip. that goes through the transition period and head winds that grow globally a lot coming up under a year now. that will be dependent on the elect there and how facebook can navigate for me, you are looking at large company growth, you want to focus on the software side of things facebook hit a hurdle and will be in the penalty box for at least three months it is a big name we'll talk to you about tesla. shares rocketing higher again. the company topping forecast and posting the first ever back to back net profits

helping to justify and prompting musk to call up haters he's offering a look at the company's road ahead take a listen here >> we are trying to make cars as affordable and as fast as possible while still being a little profitable, growth like crazy and having a good cash flow >> the tesla story is unbelievable we've come a long way from the take private scenario if that infamous tweet at 420, we are now at 630 per share >> you can't really knock it stocks a runaway freight train if you are short, i don't know what you are thinking.

they delivered on the profitability front. it feels like 2020 is posed for us to really see inflection and demand for electric vehicles the ramping on the model y they are bullish on china opportunities. we'll see what kind of impact the coronavirus will have. you are talking about a story completely done on 180 when people were calling for musk to step down months ago it's a purely momentum story we lifted our bull case. it feels like this story has more legs to go to the upside. you can't get in the way of it right now. >> incredible. i was going to ask you if you

think the valuation makes since here thank you for joining us this morning. on deck, stocks pointing to more losses. here to break down the moves that you need to make today. you can always watch or listen orwis live and on the go "wldde exchange" will be back don't go anywhere. ing for us, w. how often does that... got it. servicenow -the smarter way to workflow. 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

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a news alert on southwest airlines a report saying the company failed to report safety. the review of the report says southwest pilots flew more than 17 million passengers on planes with unconfirmed maintenance

records over a period of about two years and smashed both wing tips on a runway while trying to land in gale force winds calling the oversight as lax a review of the report strongly disagrees with what she calls unsubstantiated references southwest shares are marginally higher at this point turning back to the markets, the dow jones pointing to a lower open of about 136 points asia feeling the brunt of the selling as markets opened in taiwan intoxicati foxconn shares getting slammed there with the worst decline in 20 years

joining me now, chief strategist thank you for being here with us we talked about markets and the worry about the coronavirus at the beginning, things got a little better, earnings took over and now we are worried again. >> the way we are looking at it, the last few days have been a balance. there are concerns in early days there are three reasons you should expect the coronavirus concerns to hit the markets. more than sars first is asset prices are really overvalued coming into this year, they will be vulnerable. second is social media in 2003, there were hundreds of tweets a day, now they are a minute

global supply chains are linked. even companies that don't look like they have direct exposure to china are feeling the impact now. squoo th >> that is very interesting about social media if you are an investor this morning, what should you do? >> you have to have a cool head. we have no idea how this is going to play out. i don't think we are going to change our call. this is a long-term view we see growth in that area in the long term. you vo to watch this carefully you need hedges. defensive expose your was the case a few weeks ago and is now. one of the favorite sectors for that is real estate. that is insulated from global concerns the other is u.s. treasuries they are expensive but when things like this hit

we do expect repeated shocks, treasuries will outperform >> a lot of uncertainty. what about the economic hit for asia and the u.s.? or is it asia and the triple effect will hit the u.s. >> exactly that is the key point. we talk about retail, airlines, tourism. a lot of this will bounce back once this is on contained. if it starts to affect supply chains, if it extends to the second part of the year, you hit productionments that where you have concerns. >> there are some things that get made back up maybe a business trip will get made up. >> production is where the concern will set in. >> thank you for being with us

today. a story we'll have to continue to follow. a quick check on the futures now. we have a number of hours to go until that opening bell sounds dow jones industrial lower by about 150 points s&p 500 lower and nasdaq lower as well. "squawk box" begins right now. >> stocks tumbling in asia overnight over fears of the rapidly spreading coronavirus. we'll tell you how much will hurt the growth. we'll look at the gdp fourth quarter in the united states and elon musk is celebrating as tesla shares surge stock is up more than 50%. thursday, january 30, 2020 "squawk box" begins right now.

good morning welcome to "squawk box." we are live from marketsite in times square i'm becky quick. joe is out today sick as he has been the last several days we hope he's feeling better. we are looking at some significant red arrows this morning. dow down indicated by 150 points yesterday, nasdaq was up by five these virus concerns are starting to pick up. the nasdaq this morning indicated down about 65 and s&p down by about 20 points. looking at treasury department too. we did see some weakness after the fed came out and saw the 10-year move below 1.6%. >> it seems like the message was