amazon, tesla, the reasons why he's number one. >> two names that have held up very strongly in this market despite the fact you have the dow and the s&p on pace for their worst week in six months >> i can't believe january is over >> i know, right >> yeah. nice having you here. >> great to be here, thanks. thanks for watching "power lunch lunch.". >> "closing bell" right now. >> welcome to the "closing bell." i'm wilfred frost at the new york stock exchange. we have a big selloff. the dow was down 600 points or 2% on the dow. with 59 minutes left we are down 543 points >> welcome, everyone i'm sara eisen let's look at what is driving the action fears of the coronavirus as american, delta and united all suspend flights between the u.s. and china. the chicago pmi number plunges the dow and s&p negative for the

month of january and the big story bucking the trend is amazon looking to close up the day 10% higher after a blowout quarter. we will be all over the sellout through the close. global investor mark mobius is today's "closing bell" closer. joining us for the hour of trade, barbara duran is here from bba capital partners. what do you do on a day like today? >> basically i'm sitting and watching the secular market is very much intact but everybody is waiting for some kind of correction. we didn't know what the trigger would be the problem with this virus is we don't know how long and deep it will be but it always represents a buying opportunity. the question is when is it today, monday, tuesday >> not today for you >> not today for me. i think there could be a little followthrough because again we're starting to see new cases arrive in the u.k. and elsewhere and it could get a lot deeper. we're going to have a fear factor but somewhere there's going to be a great buying opportunity in the leisure and airlines so things are happening

nicely. >> a ten-year treasury note down to 151 as we stand, a significant move from where we started the week at 168. we are all over this big market selloff. mark san tolly is looking at energy drop. we have the latest on the coronavirus outbreak and one bright spot is amazon. sima, let's start with you. >> goldman sachs is getting a lot of attention the virus will lower chinese's gdp will have a spillover effect biggest laggers at this hour, it's really a mix of energy, technology and industrials caterpillar guiding lower for 2020 the ceo saying globe at economic uncertainty will persist he expects dealers to further reduce inventory and within construction, china sales are expected to come in flat to down 5% that's being reflected in shares

of caterpillar which are down 11% so far this month. sara and will, back to you. >> thank you over to mike santoli looking at energy stocks in today's market dashboard. >> really in liquidation mode in the energy sector. there's really been no defense provided by these value stocks and dividend payers, anything in the oil. if you look at the ec le, it is plummeting from early 2016 so this is not just about a pullback from a high this is going all the way back to those lows. the expiration production names not quite as deep but there's a give-up trade even though people are positioned in a way that suggested you could maybe make a contrarian call on these take a look at exxonmobil. it's selling off following that but this is a dividend yield of exxon versus at&t and ibm. these are three current eor former dow stocks.

they're so far above the s&p yields of 1.8% and it shows you the market is saying we don't know how safe these dividend streams are and we're not willing to take the risk of holding the stock just to collect them exxon has crossed, at&t. exxon was not too long ago a triple a rated company people are saying energy is in runoff mode right now. another factoid, it yields 5 or 6%, somewhat more than junk bonds yield at the moment. >> mike, the only very slight positive is that oil prices are down more year-to-date than these stocks are by a tune of 5% but you're talking double digit decline still for both. >> it's all about where you start that comparison from of course because last year it was quite the opposite so i do think, yes, perhaps it shows you that this is much more about investors deciding to dump these laggers that have disappointed so much as opposed to trying to handicap exactly where energy prices are going

to me it still shows you that this section of the market is still not indicating anything in the way of a reflags of the global economy at the moment. >> mike, thank you any opportunity in the energy stock with the steep selloff you heard mike say the dividend yield is higher than junk bonds. >> you can lose more in dividend yields as the stock goes down. oil prices strengthened in the fall on the assumption that demand was recovering with global reflakes but that's now been delayed because of the virus. i think people expected the world gdp to start recovering the bottom of this quarter that's pushed off another quarter or two depending how long this lasts. but no, i would not be shopping in the oil area at this point. >> crude is down about 5% this week, 15% for january. turning to the coronavirus outbreak, latest numbers show 9,922 cases worldwide and 213 deaths the state department issuing a do not travel advisory for

china, adding that americans currently in china should consider leaving let's bring in meg terrell with the latest for us. >> amid all of these developments drug companies are hard at work on potential medicines to treat the novel coronavirus. we visited rejenneron yesterday which said it may have an antibody ready for testing within six months. they've identified an approach to blocking the activation of those viruss which they say could be available for human testing even sooner, guys. >> meg, thank you. one bright spot amid the selloff today is amazon. that stock hitting record highs after reporting earnings yesterday. let's get overto josh lipton with more. >> sara, amazon shooting out of here, topping that $1 trillion mark the stock having its best day since december 26, 2018, on track for the best week since november 2018. analysts like what they saw in

that report calling out broad based strength which much of the attention is on aws. the cloud business reporting $10 billion in sales, jumping 34%, operating income rising to 2.6 birthday billi billion. amazon ceo. >> we feel that our product strength leads to the market and actually the gap on capacity and futures is growing as we speak >> of course that competition is also impressing investors. microsoft reporting and beating this week too with azure, its cloud business surging 62% guys, back to you. >> thanks so much for that clearly a massive move not quite as much as it was this time last night. where do you stand on this stock and how do you think about its valuation. >> amazon to me is one you hold

for the ages i own it myself and i think right here traders will say, well, do we take a few profits here but i would hold it they have so much more to go the stock had not gotten back to its old high even though it started recovering in the fall, people were concerned about the spending but they really have hit velocity they're still going to be profitable so this company, they have a long way to go so you could even buy it here. >> you like it the best out of all the trillion dollar stocks, microsoft, amazon, google? >> well, i own microsoft, i own apple. i own all of them but amazon to me, jeff bezos is just brilliant and they keep pumping it out that would be my number one pick if i had to pick. >> amazon of course such a big stock, such a big move means that one of the 11 techs on the s&p is higher today, in fact, up

a full percent whereas a handful are down more than 2 checking in on the dow, a low of 577 points as you see that 2% of decline, the russell down 2%, the s&p down 1.7 and the nasdaq down 1.5% we've got 51 minutes left of this session and we will of course be right in there on the markets amid this selloff. still ahead, airline stocks getting crushed amid the coronavirus spread up next, formal continental ceo will tell us how those cancellations will affect the bottom line. >> find out how mark mobius is putting his fears to rest. emerging markets got slammed this week. our data tracker, january sentiment did come in stronger than expected but it was that

chicago pmi number showing manufacturing activity fell to the lowest level since december 2015 really spooked the markets this morning. we'll be right back. at fidelity, online u.s. stocks and etfs are commission-free.

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close and we are now lows of the session, dow down 587, down 590 a second ago it's the second week in a row of declines we have wiped out the gains for the month of january. >> only just though. which is worth pointing out. >> we started off strong. >> given all the challenges that we faced, whether that was in the middle east with the coronavirus or other factors like earnings and the nasdaq is higher by 2% month to date. >> s&p 500, low of the year. let's check in on some individual market movers for you. shares of wwe are falling on news of a management transition there. co-presidents are departing the company effective immediately and will no longer serve on the

board. the company says it has different views on how to achieve strategic priorities moving forward the stock getting trounced, down 22%. one name sitting out the selloff is deckers that stock jumping on earns beats. the retailer citing strong sales for its ugg brand and the stocking up 8%. >> airline stocks falling today after delta, united and american airlines suspended flights to china due to the coronavirus outbreak the first u.s. case of the coronavirus was confirmed ten days ago joining us now to break down what this means for the airline industry, gordon bethune, former chairman and ceo of continental airlines thanks so much for joining us. i guess first, what do you make of the severity of this virus as it relates to your former industry, having seen versions of this occur in the past? >> well, you never know.

of course they really don't know what the severity of this virus is, although they're taking the precaution as you mentioned, the government decides they're not going to allow those people to fly into the country so that ends service. united is going to be the biggest loser because they own more of that market. i think it's about 3.5% of their international revenue so it's a pretty big chunk of change and it's going to have a revenue effect on the airlines and downstream business. >> i just want to mention we're down more than 600 points, over 2% on the dow with 45 minutes left of the session. gordon, in terms of the timing exactly of when these airlines have made these announcements, particularly given the way that the pilots union did try and sue american to make sure they didn't have to fly there, what is the ultimate driver for the airlines to make this decision is it because demand has dropped off that they may as well do so, or is it because they are really thinking first and foremost about the health of their stock?

>> i think it's all that if you don't have anybody that wants to fly there, obviously you're not going to have anyone on the airplane so they had begun to decrease service as the demand dropped but there's a process and everyone has their own deal with the pilots and flight attendants that they can drop those trips or trade them it's a pretty high value trip so there are people who will take it if you don't want to so there's a mechanism to accommodate those who are afraid of the consequences. >> i'm wondering how the airlines are coming up with the date for how long they're going to be out of service to china. we saw the delta headline this morning, all the way until april. we were thinking, oh, my god, april is so far away where do they come up with that? >> you're too young to remember c carnak but i'm sure it's that same way, you pull a number out of the year and it kind of looks good. >> bob, where do you stand on these investments? clearly you've got buying opportunities if this proves to be a temporary issue.

>> right normally i'd be all over this but as i mentioned earlier, we don't know how deep this will go you're seeing draconian measures taken by china i think after the boeing example you've got to react quickly and do what's best for the customer. who knows, if we see a lot more cases in europe or here, who knows what airlines will shut down different routes. it seems unlikely but these things have a way of morphing beyond what we expect. i think we need to wait a little bit. >> how much of a hit do you expect this to be, gordon, to their financials for the quarter? >> 3.5%, a little over 3% at united of the international revenue so i'd have to go and look at their income statement but it's a severe cut in revenue which is going to be missed. now, they can deploy these airplanes in other markets, but on a short-term basis as this is, it's not a permanent fix so

the disruption is going to cost them money it's not going to put them in the red but it is going to deplete their earnings >> gordon, we mentioned the share price moves since the cdc announcement does it make sense to you that united has performed the worst >> well, united, i think, serves five different cities in china, unlike american and delta that are very low presence. so they're a strong china player so if china gets sick, united is going to be affected united's got a strong network around the world but it does have a heavier concentration in china than american and, say, delta. >> can they make up for the loss of capacity by adding flights in other parts of the world or doing something different with pricing, something like that >> that's what they're going to try to do and the airplane they're using is a 787 or 777 and they can minimize the impact but i don't think they can mitigate the whole consequence of losing that much of their

revenue to a ban on flying to china. it's a pretty big deal >> gordon, clearly oil prices have declined significantly. wti is down about 15% during the month of january if that proves to be a short-term decline in the oil prices, does that fail to have much benefitto the airlines because of the way they hedge things does it need to be a more prolonged decline to really drop through to their bottom line >> their pricing, they're selling about 90 days out so if the oil prices decline further, they can adjust their pricing and pass some of that on to the passengers maybe and stim y and pass some of that on to the passengers maybe and stim ylate traffic, but i think they're not hedging for the short-term issue. they're about 90 days out. that's what generally is the case. >> quickly, i want to get your take on boeing following their earnings, not so much the numbers necessarily as the tone struck by dave calhoun and whether it was on the cnbc interview or the earnings call

do you feel they've turned a corner now under calhoun >> i think they've got a start, wilfred, that they're headed in the right direction. bringing in mr. calhoun was a good idea. making mr. killner the replacement at continent al really besides the regulatory and the customers to bring them in on board and calhoun is going to get this thing straightened out. i would never bet against boeing i just wouldn't do it. >> gordon, thanks for joining us >> thank you we briefly were down 615 points on the dow. we're down now 590 let's get to mike who's got his second installment. >> no surprise to look at today's action but when it comes to expectations for growth and risk taking, investors globally are taking the under and that process has been under way for a little while this indicator is the risk on risk off indicator

essentially it's a composite of many measures of market prices and flows and sentiment indicators and all the rest that basically show whether we're in a risk on or risk off mode and how long and how deeply. this is before today so i'm guessing after today's action we're going to be down that way. bond yields plummeting don't worry about the percentages. it's the percentage of the indicators either up trending or down trending. what i wanted to point out is these indications right here, when we spend some time in risk off mode thr, this was may intoe of last year and that of course is august into september of last year so it's not so much that we get much deeper and lower here but usually you have to knock around in this zone of regathering risk app tighetitea seeing if we've overshot to the downside this is october, about a 4% down move in the s&p 500, didn't last very long. so there's no real script as to how this goes but it does tell you that it really has been this sort of global move and

obviously today is going to deepen that a little bit here's stock versus bonds and just today we basically have bonds in the form of the barkley aggregate outperforming stocks on a year-to-date basis. the s&p is basically flat on the year today's lows, it was basically at the early january lows that happened after that iran attack. if you dial back six months, stocks were doing very well. they're riding high. this is kind of a normal pullback but it also shows you bonds again are doing their job in a portfolio because they're definitely providing some balance for a lot of this turbulence, guys. >> thr30-year yields, 199, lowe since september. two-year yield, session lows 132. >> i'll point out again, s&p dividend, not that it's magic but it's over 1.8% now you're talking about not being very far even from the 30-year treasury yield. >> thanks so much.

i'd point out on the bond point, most of it is risk and fears around the coronavirus but we got disappointing gdp data out of the euro zone today, 0.1% the german ten-year has moved quite a lot this week. whoever is leading who, either way, globally yields are compressed this week >> and also the fed, the reaction there with buying bonds as well. it's all about bullish for bonds. the nasdaq is down more than 1.5% let's get to bertha with more. >> we might be down more we're seeing weakness as we move to the lows of the session, particularly in tech biotech also has been quite a bit of a loser all of the sectors are going to be down for the week and chips in particular getting hit hard, giving up all of their gains for the month. some of these big movers, lamb research which hit it out of the park on its earnings earlier

this week getting hit hard and giving back today. a lot of this obviously has to do with that sense of concern about things shutting down, production shutting down in china, the whole impact on inventory that might happen as things are temporarily displaced because of the coronavirus, but overall there's still some concern here we're also seeing this month as well a bit of a shift in terms of some of the laggers getting more love, although today we are seeing software down with everything else. the software index is actually one of the only tech sectors that's up for the month, yearly 7% so far this year the stock that continued to power forward and even today is higher is tesla. i would call this the stock of the week, up 14% for this week after those blockbuster numbers on its earnings and outlook for production increasing, notwithstanding the fact that they too have a big tie to

china. also, take a look at this one-month chart, up 50%. guys, for the last three months, it's up 90%. this right now is the stock of the year back over to you >> bertha, it absolutely is. let's get to sima on the floor of the stock exchange for more on what's driving the market >> a very different last hour of trade compared to yesterday where we saw the market move off the lows of the session and actually end higher on the day the dow was down about 600 points we're currently down 589 the biggest losers have to do with earnings reports from caterpillar, chevron, exxonmobil, unlike earlier this week where earnings provided support to the market. earnings from those three multi-nationals weighing on invest eor sentiment we started the day down 225 points the signing of the phase one

trade deal not really impacting business thus far. united health also down over 3%. the sectors weighing the most so far today and for this month, energy and materials so those two sectors obviously underperformed in 2019 as well the oil producers, can't signal this enough, not just down today with the move in oil prices but double digit percentage decline for a lot of these major oil producers, and noble energy which is already down 20% in the first four weeks of trade. guys, currently the dow now down 600 points, the low of the session. >> down 2% thank you. let's look at some individual movers word on the street calls today starting with amazon we counted ten firms raising their price targets on this stock following the company's earnings beat. the stock is one of the bright spots in today's selloff looking to close up almost 10% jpmorgan initiating uber with an

overrate rating. the firm expects shares will be driven by stability from international markets and new loyalty product rollout. >> snap saying it's taking brand ad spending share from facebook. they met with the social media ad agency and said 90% of his brand advertisers were on snap both trading lower, in line with lots of drops. facebook had a tough week with its earnings where do you stand on those social media stocks? >> snap news is interesting because it says more about snap than it does about facebook. snap has been about the modernization story and it seems to be working. the the stock is probably fairly guided right now for facebook i don't think it matters that much. snap has about 155, 156 million users. facebook has 2 billion

in terms of the 18 to 24 age group which is primarily what snap does, facebook has 14.5% of their users in that age group, although about three-quarters of that age group do use facebook i don't think it's a zero sum game it's something to monitor always but the advertising digital is still expanding so i don't think it has deep implications >> down 12 points. mike santoli also at the desk. the individual movers that are moving today and for the week, real really have to do with earnings. it's earnings season, coronavirus, election uncertainty. >> excellent earnings still have the power to drag stocks higher, although i do think it's telling that today you are seeing some of the formerly bulletproof leaders like apple give up more than the market. there is a little more of a let's reduce exposure here so many things are moving around today that you mentioned, sara you know what's going to happen

on monday is the chinese market is going to open with a huge loss you're going to have that catch-down move in china. >> theoretically we should have already priced in in the u.s. market. >> right if your question is, is this the time, i want to buy aggressively ahead of a weekend what could possibly come out over the weekend about this virus that's going to all of a sudden make you feel better about it i'm not saying people are right. that's how the psychology works once you lose e loosen the teth the old hide you're starting to see a little bit of increasing fear and desperation in some of the indicators but we're only down 3% so you wouldn't expect to see any capitulation. >> 620 on the dow, down 2.15%. >> we are getting word that the white house will hold a briefing any minute now on the coronavirus. it will be members of the president's task force on the

virus and will include secretary alex azar, department of health and human services, robert o'brien, assistant to the president for national security affairs, dr. robert redfield, director of the centers for disease control and prevention awaiting those gentlemen as we await that, we're keeping an eye on this market. stock selling off hard on fears about the coronavirus and the economy. the dow right now down 630 so we're seeing fresh session lows with 30 minutes to go. joining us by phone, tony gdwye. what's your level of uncertainty and bearishness around this market >> people talk about what causes markets to peak or to bottom and it's always with certainty it peaks when you're certain that there's nothing that can drive it down and it bottoms when you're certain there's nothing that can drive the market up, and we're somewhere in the middle right now. we downgraded our view two weeks ago and that was before the

coronavirus. it was because i really literally couldn't come up with a reason that the market should go down. earnings are great credit was great there's this level of enthusiasm that was inappropriate and we're definitely taking that out quickly. >> clearly, tony, as you just outlined, valuations anyway you felt were getting stretched. does that mean though that given that the trigger for the selling was the coronavirus, that if and when that as an issue is cleared up the market rallies again, or do you think this has triggered a wider selloff that was due and would continue regardless of where the virus stands >> as you know, one of my favorite lines is corrections only appear natural, normal and healthy until you're actually in one. by definition they're triggered by something that creates the perception of a fundamental change or weakness that can drive you into recession definitely this coronavirus puts you in that framework. what i did, i went back and looked at the ebola virus

pullback in october of 2014 and what we saw was a 9% drop in the s&p versus the current 3% drop we looked at a vix that was 26 back then. it actually got over 30 at the low. less than 15% of the s&p was above their 50-day moving average versus 47% now, and only 35% of investors were bullish. while we did expect a pullback in the 5 to 10% range, rather than try and figure out the right price to be a buyer is, it's where the indicators suggest that you're reflecting kind of a worst case scenario and we're just not there yet >> mike, tony brought up a point that you've been making which is you got to keep it in perspective where we were in terms of sentiment and how the market had run up and everyone was feeling great about everything for the year, which makes me wonder, is the coronavirus an excuse for a cause of this selloff? >> i think something was going

to come along. the coronavirus is a cause but one that has real effects. it's not purely in our heads it is really -- what it tells me is that everyone thought we were going to get an immediate trade piece dividend in terms of industrial growth picking up and the global was going to look like a much healthier place economically than last year. this is pushing it off indefinitely we don't know when we're getting that upturn. everybody was positioned and prepared in their minds for that type of market and environment we basically have gone 180 degrees the other direction. that's all it really means people are badly positioned for the world we now find ourselves in and who knows how long it takes to kind of shake that out. the one thing i'll say is tony is right about not setting a level or a price sometimes if you've overshot to the upside, you have to overshoot to the downside. i'm not saying we do but 3%, there's nothing particularly special or catalytic about that

level. >> are you concerned about the gdp impact on china and also factor in that weak euro zone data for the fourth quarter in the gdp. does that delay the hope of a global economic pick-up? >> rather than get -- yes is the answer, will it can have a major effect on global gdp because you have the world's second largest economy that's basically shut down but it is very important, the most important point i can make, if you get too negative based upon what the impact of this could be to gdp, you could get your face ripped off by massive monetary stimulus plan globally to offset it it's the second largest economy and china is going to do some fiscal stimulus to get out of it the time to get cautious is when it was ramping to excess, not when it's getting hit in a significant way. >> i think it's an important point, tony, because we sort of

wonder what monetary authorities can do to fight weakness all over the globe, so is your point that in china they can do a lot? >> clearly unless you're going to debase all the primary currencies, the idea that the fed has run out of bullets or the global monetary policy has run out of bullets, as long as you're a primary currency and can print money, you will when you need to. if this becomes a real crisis, a real global shock that comes out of a macro event in china which again is more than 17% of global gdp, you will see that so you could be right, you could feel -- it's almost like the low in 2018 where i felt like an idiot because i was too bullish well before the actual low when you got that dovish pivot out of powell, it rips so high so quick that doing defensive proved to be the wrong move. we're looking to be more offensive as our indicators kick into the buy zone.

they're just quite not there yet. >> stay with us. the president's task force expected to hold a briefing at any minute in washington let's bring in meg what will we be listening for? >> we're not sure yet. already today we are hearing about almost unprecedented measures being taken by the government the cdc said that it had put his first quarantine in place in 50 years about that state department plane that transported 15 passeng0 passeng china to the united states the quarantine is 14 days from when they left wuhan, china. this hadn't happened since the 1960 and the scare from smallpox they say they would rather be remembered for overreacting than underreacting. the members of that task force, the leaders of the cdc, also representatives from homeland security, the department of

transportation, and of course the state department has already stepped up its travel guidance for china and recommending not to travel there because of the novel coronavirus. so we are wondering will there any further and stronger words about travelpotentially. we just don't know of course yesterday when the world health organization declared the public health emergency of international concern, they recommended against countries putting those kinds of travel restrictions in place. their argument essentially is that they're not only ineffective but they can sometimes hinder efforts to try to provide aid and can take away resources and focus from efforts that actually do work to try to isolate and contain these kinds of outbreaks we are seeing reactions directly in opposition to what the who was guiding yesterday, guys. >> meg, thanks so much for that. stay close we'll want your expertise as we see the results of that press conference due to start at any

moment and we will of course take it live. >> the market is moving on these headlines. yesterday we saw it when the who did declare that global emergency but did stop short of recommending that people don't travel or trade to china then they gave it up when we learned that the u.s. was told not to travel to china. >> we're vulnerable to any sign of broadening or intensification of the human impact to this virus but also you have traders twitchy to look for that moment of peak emotional desperation around this and that's what yesterday was. by the way, i had people tell me this week, when it's on the cover of "the economist" that's when you buy guess what, it's on the cover of "the economist". >> that cover came out this morning and we're down 660 points briefly so over the 650 mark also the s&p 50 down more than

2% the nasdaq right around that level, just less than 2% decline. barbara, when you look at this, are there any stocks out there that you are attempted to be buying because you've been waiting for this opportunity and they're not linked or exposed to china? >> it's interesting because even before the coronavirus and concerns about it taking a nick out of global gdp, you were seeing growth stocks -- you would expect those sectors to do well and i think i'm definitely not looking in that area because now we are going to have slower growth i have been well positioned in terms of the growth stock fortunately and so i'm just waiting to add to a favorable position i'm not doing that yet i'm also starting to look at some of the airlines because there will be a big opportunity here and maybe it's today but i'm not doing it yet. >> tony dwyer, where do you want to be positioned sector-wise when the market comes back >> when we downgraded the

markets two weeks ago we neutralized our sector performance. we're going to go on offense i'm going to be more offensive if the market continues to trend lower like this and the situation in china gets worse and spreads globally, the amount of monetary stimulus and fiscal stimulus that's going to take place will be almost like you're coming out of a recession kind of trade when our indicators hit the levels that they need to hit for us to really get back in there and it will be some point next week, i'm going to be on offense. you're going to get a monetary and fiscal response. >> tony, only from china, right? what's it is euro zone going to do in the short term >> i got to say this, i don't think it's just china. i think china -- the virus gives you an excuse to add more stimulus, especially given the gdp numbers that you mentioned earlier. >> what will the euro zone do? >> they're already buying

corporate debt honestly, i would love to tell you i knew i didn't know they were going to do that in 2016. again, as long as you're a primary currency, there's tools and ideas that they have that are above my brain grade. >> that are always more tools. >> there's always more tools >> they could go deeper negative, they could buy stocks. >> but my point is the debate over the last three months has started to pivot to being further cut into negative territory is a bad thing on the economic where we crossed the point that looser and looser was helping. >> the markets really are saying who can move here, who has the flexibility. the fed can go in the next few months if they see fit and of course as tony says, china can just kind of open the jets if, in fact, they get past this point of being in this

mode. >> the euro zone is going to be more linked to china slowdown in the u.s. and less ammunition we're down 670, mike >> you would almost prefer to see it you want to see a little more of a purge because now that we're town this much we've stopped obeying the minor pullback lines. that's probably not the worst thing to go into the weekend in that condition it doesn't mean you're at a low but it's probably better than not. >> down 680 on the dow let's check in on bond markets as well. rick, some risk off moves there too. >> yeah, i'll tell you, nothing is going to scream how much bonds and notes and the entire treasury curve has participated not only as a hedge, as the risk off mentality drops global

equities but for a variety of reasons, not the least of which are economic fundamentals. we are down 19 basis points on the week now. >> rick, i'm going to interrupt there and let's get to president trump's coronavirus task force just beginning now, the press conference >> i'm going to start by turning things over to dr. robert redfield, the director for the centers of disease control and prevention, to discuss the current situation on the novel coronavirus. dr. redfield >> thank you, mr. secretary. let me give you an update on the current situation of the novel coronavirus. first though, i want to emphasize that this is a serious health situation in china, but i want to emphasize that the risk to the american public currently is low our goal is to do all we can do to keep it that way. second, i want to recognize the

concern that the american public may have, and i want to reiterate what i just said currently, the risk to the american public is low as of today, there are nearly 9,700 cases in china with more than 200 deaths. additionally and currently there are another 23 countries that have confirmed totally 132 cases. this also includes 12 individuals who have been confirmed in six countries who did not travel to china. cdc has launched an aggressive public health response focused on early case recognition, isolation of those cases identified, and contact tracing around those individuals this response is a layered response which includes both targeted airport screening as well as heightened education and

awareness of the american health care community to be vigilant in ascertaining the possibility of recent travel to china when they are evaluating patients with upper respiratory tract infection. to date we have confirmed six cases of this novel virus in the united states. the most recent case had no travel history to china but was a close personal contact of one of the previous cases that we had identified through our aggressive contact tracing in addition, there are currently 191 individuals that are under investigation. once again, i want to emphasize that this is a significant global situation and it continues to evolve. but i also want to emphasize again that the risk this time to the american public is low mr. secretary.

>> thank you, doctor i would like to invite the director of the national institute of allergy and infectious disease to discuss the underlying rationale for the actions that i will be discussing after he concludes. >> thank you very much, mr. secretary. the concept that's underlying the action that you'll hear about shortly is the issue of the unknown aspects of this particular outbreak. let me enumerate just a few of these. i can start off by putting it into perspective by telling you i often get asked if we have an influenza outbreak here. we have about 8,000 deaths, about 100,000 hospitalizations, why are we paying such attention and doing the kienlnds of thing we're doing here right now the reason is despite the morbidity and mortality with influenza, there's a certainty, for example, of seasonal flu i can tell you all guaranteed that as we get into march and april the flu cases are going to

go down. you can predict pretty accurately what the range of the mortality is and the hospitalization as we've done over the years the issue now with this is that there's a lot of unknowns. as you can see just from the media, the number of cases have steeply inclined each and every day. you know that in the beginning we were not sure if there were asymptomatic infection which would make it a much broader outbreak than what we're seeing. now we know for sure that there are. it was not clear whether an asymptomatic person could transmit it to someone while they were asymptomatic now we know from a recent report from germany that that is absolutely the case. there are a number of countries outside of china that have travel-related cases, and now what we're seeing is that there are secondary cases from them. as bob mentioned, we also have that in this country

the who has issued, as you know, a public health emergency of international concern declaration. you put all these things together, i underscore what bob said, we still have a low risk to the american public but we want to keep it at a low risk. because there are so many unknowns here, we're going to take the action that the secretary will describe in a temporary way to make sure we mitigate as best as we possibly can this risk. thank you. >> thank you today, president trump took decisive action to minimize the risk of the spread of novel coronavirus in the united states since taking office, president trump has been clear, his top priority is the safety of the american people. in addition to the steps that the doctors have outlined, we

continue to operationalize a multi-layered cross agency public health response following the world health organization's decision to declare the 2019 novel coronavirus a public health emergency of international concern, i have today declared that the coronavirus presents a public health emergency in the united states. the actions we have taken and continue to take compliment, compliment the work of china and the world health organization to contain the outbreak within china. in accordance with the declaration beginning at 5:00 p.m. eastern standard time sunday february 2, the united states government will implement temporary measures to increase our abilities to detect and contain the coronavirus proactively and aggressively any u.s. citizen returning to the united states who has been in hubay province in the last 14

days will be subject to up to 14 days of mandatory quarantine to ensure they are provided proper medical care and health screening. to be clear, this applies only to u.s. citizens who have been in hubay province in the past 14 days prior to their attempted entry into the united states any u.s. citizen returning to the united states who has been in the rest of mainland china within the previous 14 days will undergo proactive entry health screening at a select number of ports of entry and up to 14 days of monitored self-quarantine to ensure they have not contracted the virus and do not pose a public health risk additionally, the president has kind a presidential proclamation

using his authority pursuant to section 212 f of the immigration and nationality act temporarily suspending the entry into the united states of foreign nationals who pose a risk of transmitting the 2019 novel coronavirus. as a result, foreign nationals other than immediate family of u.s. citizens and permanent residents who have traveled in china within the last 14 days will be denied entry into the united states for this time. once again, these actions will become effective at 5:00 p.m. eastern standard time sunday, february 2 these prudent, targeted, and temporary actions will decrease the pressure on public health officials screening incoming travelers, expedite the processing of u.s. citizens and permanent residents returning

from china, and ensure resources are focused on the health and safety of the american people. i want to stress, the risk of infection for americans remains low, and with these and our previous actions we are working to keep the risk low all agencies are working aggressively to monitor this continually evolving situation and to keep the public informed in a constantly transparent way. the united states appreciates china's efforts and coordination with public health officials across the globe and continues to encourage the highest levels of transparency. it is likely that we will continue to see more cases in the united states in the coming days and weeks, including some limited person-to-person transmission the american public can be assured the full weight of the u.s. government is working to safeguard the health and safety of the american people i'd now like to invite the

deputy secretary of state for an update >> good afternoon. i'm the deputy secretary of state and i represent the state department on the president's novel coronavirus task force let me describe briefly the role of the department of state and the proceedings of this task force and our contributions. our first responsibility is to monitor events on the ground in china where we have the presence of u.s. diplomats and to give clear and accurate advice to american citizens and in particular american travelers considering visiting or staying in china in this particular case, this includes identifying any health or safety risks to which they may be subjected but also very importantly, identifying their access to essential services such as health care in parts of china that are affected by this

coronavirus. china has an excellent health care system but in parts of the country it is simply overwhelmed and the accessibility to that health care for any reason including potential infection but also any other type of accident in need of medical care may be compromised during the chinese government's own treatment of the consequences of this virus finally, we also make our judgments based upon any obstacles, particularly obstacles to movement that american citizens might face in the country and in china we have seen barriers to travel both within and without china as well as between the united states and china and so we have given prudent advice over the course of the week to american citizens in order for them to allow them to make the best possible choices for themselves our second responsibility is to assist u.s. citizens in the affected areas as much as possible because we have a presence on the ground, we can provide advice and make other arrangements i want to emphasize this is as

possible and we will continue to review what we can do in certain circumstances. finally and very importantly, the core mission of the department of state is to work closely with our international partners and in this case we are working very closely with the chinese government in order to address a number of related matters. let me start on behalf of the president and the secretary of state by extending our deepest compassion to the people of china. this has been a very difficult time for the chinese people. it came at a point of their peak holiday season many are affected. many have lost loved ones or are enduring the illness of loved ones and i want the chinese people to know that they have the deepest sympathies of the united states of america let me also say and echo what the secretary said which is we are deeply appreciative of the close cooperation we have with the chinese government as we work together to try to find appropriate ways to address any risks and challenges from this virus. finally, the united states will

continue to cooperate with china in ways that we can potentially provide assistance including technical assistance and also to the extent possible any critical supplies that the chinese need in order to address this virus and we are working very hard to find donors and make arrangements so that we can undertake a robust effort to help the chinese people get their arms around this outbreak. thank you. >> thank you, secretary. let me next invite the acting deputy secretary of the department of homeland security, ken cuccinelli, to take the podium for comments. >> thank you, mr. secretary. i'm the acting deputy secretary of the department of homeland security and i'm the department's representative in the task force several elements of the department of homeland security are engaged in implementing the medical strategy you heard described here, including customs border protection which stands at our land ports, sea

ports and airports and i'll come back to the airports in a moment, particularly the office of field operations personnel who you see when you come back into the country from your travels. they're the first line of defense when you land and come to the country additionally engaged is tsa. the security and engagement with the airlines our chief medical officer in the department is in cwmd and we're providing medical support at the airports so we're using contract authority that we have to back fill the cdc personnel so they can be freed up for other missions at the airports where medical screening is being focused. fema continues to prepare and support hhs preparations themselves, and the united states coast guard of course commands the ports of the united states and deals with incoming shipping which is obviously slower than the airplanes but coming nonetheless

we are prepared to deal with each of those. the president's proclamation will have customs border protection ensuring that united states citizens, legal permanent residents and their immediate families continue to enter the united states, though those coming from the province as you heard from the secretary will be subject to quarantine and the others from china to screening we will be implementing a funneling effort at the airports this it will include seven airports to starting 5:00 on sunday eastern time, incoming flights from china will be funneled through seven airports those airports are jfk, chicago's o'hare, san francisco, seattle, atlanta, honolulu, and

lax. this is done under cbp's authority and will be executed by the secretary of the department of homeland security consistent with the president's proclamation and in support of that effort, again, so we can focus the expertise of the medical professionals. we'll continue to support the medical efforts across the country both at our ports, our land, sea and air, as well as with personnel standing up some of the resiliency measures that hhs has been, windowi working oe time thank you. >> thank you, secretary. at this point we would be happy to take some of your questions kevin, would you like to get it started? >> thank you, mr. secretary. if the risk is really low, can you talk about why go to such an extreme as a public health emergency? if the risk is that low, why are we taking such measures?

>> these are actually fairly incremental measured steps on top of the steps we've already progressively been taking. you'll notice that many airlines have already stopped direct flights from china, have pulled that down. the department of transportation could comment on the numbers we're seeing, or homeland security we're seeing a significant reduction in people from the u.s. going to china, people from china coming to the u.s. already. this helps us focus our efforts so that as we're dealing with the unknowns that the doctor spoke about earlier, unknowns around incubation period, unknowns about the speed of transmissibility, unknowns about asymptomatic transmission, unknowns about severity, that we take appropriate, measured prudential steps so we can focus our resources. i talked to you before about the bread of butter of public health identify people who might be symptomatic or have the disease,

diagnose, treat. that's a significant undertaking as we've already done with the six individuals in the united states who have been positively identified. >> secretary, the mandatory quarantine of people coming in, will that be home quarantine or in an institutional setting? >> at an appropriate quarantine facility of some kind for those individuals. for u.s. citizens having been in china the previous 14 days, they would be funneled, they would be screened appropriately to see if they present any type of symptoms of the disease and then they would be asked to self-isolate at home over the 14 days for individuals from hubei, because that is the epicenter of this with such high, immediate transmission, we feel these additional measures for up to 14 days are appropriate >> can i follow up have you selected specific quarantine centers

>> we have selected them we will announce those as dhs implements with the airlines that funneling activity. >> what does self-quarantine look like? how do you enforce that? could you also speak to, you just described this as an incremental step this is obviously significant, the quarantine in this country what is your message to americans who are watching this on the news who are seeing this who are feeling really alarmed by the steps this administration is taking and by the spread of coronavirus in general they hear you say the risk is low but they see this action being taken and some people might be freaked out by that. >> i hope that people will see that their government is taking responsible steps to protect them these are preventative steps the risk is low in the united states the risk is low of transmissibility the risk of contracting the disease is low, but our job is to keep that risk low by taking appropriate preventative steps let me ask dr. redfield if he can talk a bit about -- we do

this type of quarantine and self-isolation work basically every day. i want to stress something we've not mentioned enough we're working closely with our state and local public health partners we serve as a back-up in expertise and a border type force but the state and local authorities are the backbone of our public health frinfrastructe and we work with them daily. could you talk about self-isolation >> thank you, mr. secretary. clearly we stratified the risk groups here from hubei province where there is aggressive transmission those individuals are going to be required to have 14 days of -- up to 14 days of institutional transmission there's a large category of individuals come back to china over half of the reported cases

in china now are not in hubei but when you look at their history, they got infected -- probably 85% of them got infected from hubei. they'll be actively screened for significant risk as well as any evidence of any symptoms in the absence of any reason to advance them into a clinical evaluation at that port of entry, they will be allowed to complete their travel back to their home where they then will be monitored by the local health departments in a self-monitoring situation in their home. we did this in the west africa ebola outbreak but i want to emphasize at that time over 98% of the american public voluntarily accepted the

importance of this and we continue to believe the american public will see this as something to their benefit, their family's benefit and obviously their community's benefit. that's the current situation >> we are going to continue to monitor this news conference for you but the big headline of course the hhs secretary has declared this a public health emergency in the united states a number of health officials as you heard says the risk to the american public is still low the officials continued to outline some of the new measures and steps they're taking to try to fight the coronavirus and the potential spread here in the united states including the trump administration saying foreign nationals aside from immediate family of u.s. citizens and permanent residents who have traveled to china within the past 14 days will be denied entry into the u.s. they are going to continue to quarantine those citizens that have been to that province for 14 days and take a number of

other measures in terms of the numbers, update here for you, six confirmed cases in the united states according to the cdc director, 191 individuals in this country are under investigation. >> of those six cases, only one hadn't traveled back from china themselves only one got the disease from somebody else here in the u.s. and have had very close contact with another one of those five cases. the market was down 689 points when that press conference began so it did deliver some reassurance it seems to the markets we closed down 603 points, just over 2% about six minutes ago. the s&p was down 1.8%, the nasdaq down 1.6. the russell down 2.1%. for the week we are looking at just over 2% of decline and for the month of january as a whole, the nasdaq still higher by 2%, whereas the dow was down 1%. the s&p down fractionally for

the month. that was the first negative month for the dow in five. of course a very strong first half of january being undone in the second half. >> the s&p moved down 1.9% actually was the worst day since august the s&p losing 2.5% -- excuse me, 2% for the week, worst week since august 2 let's bring in meg who's been monitoring the news conference to tell us more about what steps are being taken and how unprecedented they're in this country to fight coronavirus. >> a lot of questions there about how extreme these measures appear to be, although the secretary calling them incremental on top of what they have implemented to try to stop the spread of this virus, taking a tiered approach based on whether people are u.s. citizens, where in china they traveled, if people are foreign nationals, denying them entry if they had traveled to that region all starting on february 2 i don't believe we got an end date to when these measures will

end. interestingly, they say they are going to be screening u.s. citizens at entry points in the united states for potential symptoms but we heard at the top from the nih that now asymptomatic spread has been confirmed in germany in a patient there. this is all moving very quickly and a lot of questions of course are coming up about how they're going to implement all of this, including that quarantine. in terms of precedent, trying to dig into this now, just from memory, we remember ebola in 2014 when american health care workers were coming back from west africa, some states implemented mandatory quarantines and there was a lot of controversy about that. one of the nurses who was quarantined sued governor crihrs christie at the time we're going to continue to monitor this but pretty big

steps coming out of that coronavirus task force at the white house. >> meg, thanks so much for that assessment joining us to talk about what all of this means for the market and that massive selloff we saw today, ben mendell, barbara duri duran is still with us jim is on the news line. let's start with mike. a big selloff, a little off the lows of the day but we were down 680 at the low. >> 1% on the s&p 500 obviously a little more intensity to the selling we had high volume and some of the crowd in popular positions started to unwind so it shows there was a little more of a flight instinct at work today. obviously capital markets in general are pricing in the risk to the global growth picture so yields are telling that story that we expected in terms of growth pick-up and we're going to have to figure out from the

stock market perspective what the implications down the road are for the earnings comeback story. right now it's much more about the macro effects of all these economic restrictions related to the virus. >> you don't just see it in stocks today we should note the move in bonds which has been big, the ten-year treasury note yield now 150. we saw lower yields, buying of treasuries on the safe haven bet, on the lower global growth bet, perhaps more stimulus. >> it's obviously a wet blanket gets tloehrown over the market. all that stuff does tell a similar story and of course the obvious next step is to talk about what might a response be in terms of a fed move if that would be in order. >> nobody knows. that's the thing we're still in this heightened period of uncertainty. we don't know the markets, how much this is going to spread or how far and how long china is going to be really cut off here from the world >> no. exactly. what mike was describing we see today and this week but

especially today is this risk off trade. that's usually not for one day the thing here is that we're in the middle of earnings and the earnings have been good so we've got a lot next week so that should provide some support to the market the reason the market is down today is not going to change overnight. as mike said we're going into the weekend. god knows what we're going to hear in terms of the coronavirus and where it's showing up next that press conference was reassuring as a u.s. citizen i thought, okay, we have big oceans on either side and are somewhat protected. i think for investors we're going to continue to have news on this and i think it's going to keep the market under a little bit of pressure. >> the only nonsafe haven move today was in the dollar which slipped half a percent against the yen but also against the rur row and the pound, a big move against the pound, some suggest that's linked to expectations that bernie sanders could do well next week either way, jim, what do you make of all of this big otherwise risk off move, the big

move in bonds and stocks today and this week? >> i would agree with barbara. i think that the problems are here not a health problem. i'm not worried about the health of the american public or my own personal health as well but the fact that they are announcing a 14-day quarantine or a self-quarantine for anybody who's been to china says the whole country of china needs to do that to get beyond this and that's going to have enormous economic implications as you take the second largest economy and disconnect it from the global economy for a period of several weeks. i think the markets are sensing the economic damage that this could do more than the health damage that it poses >> i guess if you look at the ten-year yield at 150, is that the economic weakness story? >> yes, because the yield curve has inverted it is below the three-month bill

i've used a simple definition, an inverted curve yield thinks the fed is too high. the question is when does the fed start seriously thinking about cutting the funds rate as we stay with an inverted yield curve, then i think the fed move will come onto the table as well too and that might actually also reinforce the idea that there's a dramatic slowdown under way. >> you saw the dollar move earlier today. really the market started moving after the chicago pmi number and the weakness that was a surprisingly weak report and that's where we saw the dollar the stock market fell out of that buying of bonds, and this view that things were looking good going into the year and now maybe they -- >> literally the way it is, at the highs it seems like you can do no wrong and the consumer looks great, earnings on the upturn, credit markets are

great, volatility is low when things start to turn you start finding things that all of a sudden don't look as wonderful. obviously midwest manufacturing, in other contexts we could have written it off bernie sanders high in the polls, in another week maybe that's just noise. it seems like one thing on top of another and market selloffs are like murder on"murder on th expres express" everyone did it in the end even if only one did the killing. >> barbara, where do you want to be positioned in this environment? is this the opportunity to get back into the growth stocks? >> ultimately it will be that's the conundrum all these stocks have run and run and where do you get in if you missed apple or missed amazon when do you get in i think an opportunity will come up because i think the stock is fairly valued. where do you go. i think it will be an opportunity to rotate back in. >> ben, is this a buying opportunity in your eyes

>> first of all, hard to overstate the gravity of the situation for the individuals involved here. from the perspective of a multi-asset investor, we've been risk on for about two months now and of course a very painful week for that position, a very painful day today. at the end of the day i'm not sure that changes the underlying macro situation. coronavirus at its core is a natural disaster and we can debate the depths and the extent of it but the shape of it insofar as it's going to create a steep down growth for the affected regions and you make that back over the course of the next few quarters or throughout the year this year, that has not changed. i think we're holding the line on equities. i would not say it's a buying opportunity given the uncertainty, and to your earlier point, i think it's emphasizing the key aspects of a coherent multi-asset portfolio in this environment. one of them is that treasuries

is your best insurance policy against downside risk here the way that treasuries have been trading have just ratcheted down every time you get a selloff treasury yields fall and they don't bounce when equities bounce from the perspective of where do you want to take risk, we like overweight equities. the other thing i'll mention is that the u.s. market, so s&p, is a sensible overweight versus other equity markets in this environment. the high roe, the decent earnings, the high quality market, that's exactly where you're going to see some protection during this phase and during this week that's exactly what you saw. >> the xop has been crushed in january. just saw its worst month since september 2018 dom with a deeper dive into that one. >> we've got oil prices continuing that near term downtrend we've seen for weeks and months now as the fears over

the economic impact of the coronavirus as you guys have been talking about work their way through the markets. this is much of the world's second biggest economy, china, that remains in lockdown as the government looks to contain this infection. china, the world's second biggest consumer of crude oil. it's also the world's biggest importer of crude oil. that's the macro picture a couple of big earnings moves america's two biggest energy companies are lower on the day as well. you've got exxonmobil reporting profits that missed analyst forecast hurt by shorter term supply issues in its refining and chemicals business then you've got chevron, better than expected profits but revenues trailed estimates hurt by among other things those weaker oil and natural gas prices wilfred, sara, michael, as we talk about the dynamic here, one of the other places pricing in that slowslowdown, not just t e treasuries but commodities and oil. >> airlines also sinking today

phil lebeau has more on that. >> the three major u.s. airlines that fly directly to china, all of them today announcing that they're going to be spending their flights to mainland china, though you still have american and united that will be doing flights to hong kong it will be interesting to see how this directive from the federal government impacts those flights. here are the suspension of flights. american starting immediately through march 27 delta and united on february 6 you see those dates of april and march in terms of when the flight restrictions are over those can be shifted they can move back further or they can move up depending on what happens with the coronavirus. guys, the most interesting thing i heard in that press conference from the white house is when they said that foreign nationals who have been to china in the last 14 days, if they're not an immediate relative, they may be denied entry to the united states if they've been in china in the last 14 days. that's not just somebody who's in china coming to the u.s that also could apply to

somebody let's say who's in vietnam and was just in china or in japan or korea. it will be interesting to see how this shakes out. let's be clear here, that message will be sent to all of the airports with flights coming into the u.s. so those people will know before they even go through the ticketing process, you get to the u.s. and you've been in china in the last two weeks, you are going to be denied entry >> phil, thanks so much for that big decline in the airlines, down about 14% or so over a month for united airlines. si sima is having a look at the biggest movers. >> last day of the month and rather a volatile one for the dow closing lower by 603 points. if you take a look at the sector, losers dominated by energy, already down double digit percentage, down 11% for the month of january materials down about 6%.

the names that weigh the most on the dow not just today but for the month, dow, chevron, exxonmobil, caterpillar down 11% following a weak guide for 2020. those comments from the ceo about demand and persistent pressures that the company is facing, that stock down about 11%. the names able to hold onto gains for this month despite the volatility that we saw this week, a name like elle brands, one of the losers last year but closing the month higher by 27%. those home builders, lenar seeing double digit gains. >> thanks so much for that big movers of course tom levy is able to join us. there are the major averages by the way for today, down 2% health and human services secretary declared the outbreak

a public health emergency moments ago. the latest number of cases has risen to nearly 10,000 with more than 2000 deaths confirmed tom levy able to join us now what's your take as to the scale of selloff we've seen in the market in relation to this health scare >> i think the selloff is understandable a virus like this is going to raise economic uncertainties in people's minds so i think risk premiums should be rising. stocks have had a great run so i'm not surprised it's taking place. when you look at high yield, spreads have really blown out. the vix futures market has inverted and that's usually telling us a deeper selloff is under way. i think markets are going to be kind of sloppy in the short term but i don't think it's a dooms

day catastrophic recession is around the corner. i think it's a short term risk off. >> nobody is willing to say now is the time. it's interesting, mike, to gauge the kind of consensus on the closing bell desk from our guests we came in monday and there was selling on the coronavirus and everybody was saying buying opportunity. today they're saying it's still a little too uncertain. >> the market has essentially told you that it was not positioned and priced to shrug it off and even though everyone knows that a virus is probably not going to be the thing to bring down this economic expansion or the bull market, the market told you this week that there was a little more frost to skim away and we had to keep repricing based on what bonds were doing high yield market has been a tremendous support to stocks for a while. i mentioned about the whole vix futures being upside down. that also said rough sledding

ahead. all those indicators are more or less saying why be a hero right here it doesn't mean there has to be that much more depth to the pullback but it seems that the market has entered a different type of phase from what it was a month ago. >> have there been more high profile earnings misses than earnings beats >> not necessarily high profile, no as a percentage it's roughly in line with history. i think some of the surprises have been the biggest, best performing nasdaq stocks have done enough on their earnings to actually keep their stock prices supportive like apple and amazon until today. on the other hand global industrials have not given you much assurance that there's a turn, whether it's caterpillar or 3m. >> tom, we had a fed meeting this week and fed chair powell said he was watching the coronavirus as one of the potential sources of uncertainty. we're pricing in a full 50 basis points of cuts in 2020 so the market is fully expecting at least one, maybe two cuts here

for the interest rate. how is that going to impact the market >> i think that's really what's important for most people's time horizons the weakness that we might see in the next few months isn't going to make the full year a negative year for stocks i think 2020 still ends up a double digit return because we got the fed put, plus i think there's a t net put. there's no alternative equities have high risk premium, good risk yield against the ten-year i think stocks ultimately become like a shopping list again high yield and the vix, these things which on monday were telling us to be wary have only gotten worse i think in the short term, as michael said, this relentless bit of stocks is taking a pause and that's why we might correct. >> thank you all for joining us.

tom, barbara, jim, good to talk to you as well and ben of the confirmed coronavirus cases, two are in illinois, the first documented human to human transmission of the virus. let's bring in the director of the illinois department of public health. thank you so much for joining us what can you tell us right now about the state of those who have the cases have we learned anything else? >> thank you for having me as you mentioned we have those two confirmed cases in the state of illinois. i think everyone may be aware but the two cases, the first was a travel associated case the patient had come from huwuh china. the second case which represents the first human to human transmission was in very close contact, one of the closest contacts, it was the spouse. both of those patients remain in the hospital and are in stable condition. >> in the hospital and quarantined and how kind of

effective, howdeep is that quarantine >> we're using the standard isolation procedures that we would use with a case. they're in a negative pressure room anyone interacting with the patient has to use the full personal protective equipment. >> we saw reports that an infant related to the patient has a fever and is being tested. do you know anything about that? >> i'm really commenting more on the confirmed cases. if i get an additional confirmed case i'll be sure to report out on that. >> thank you so much for checking in. still to come on "closing bell." our "closing bell" cselor, mark mobius will share his investment ideas and how the coronavirus outbreak could impact the global economy. we're back in a couple minutes don't go anywhere. prevagen. healthier brain. better life.

and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk welcome back there is how the dow closed, down more than 600 points, 2%. it came off the lows in that final five or ten minutes of session. it's the worst day for the dow since october 23 also the dow closed lower for the month of january for the first time in five months. the s&p also down 1.8%, down 2% for the week and just negative for the month. the nasdaq though just managed to close 2% higher for the month of january, still positive >> time to get a cnbc news

update with sue herera >> hello, everybody. here's what's happening at this hour gop senator lisa murkowski says she will vote no to hearing from witnesses in president trump's impeachment trial. murkowski's decision increases the likelihood the impeachment trial will be the first in history with no witness testimony. meanwhile, president trump signed an executive order friday that will increase funding to crack down on human trafficking across the country the president authorized $430 million to fight sex and labor trafficking and $70 million to enhance prosecutions former new york city mayor michael bloomberg spent $200 million of his own money in 2019 on his bid for the democratic presidential nomination. that's according to disclosures his campaign filed with the federal election commission. bloomberg launched his campaign at the end of november and nike's controversial vapor fly shoe can be used in the 2020 summer olympics

under rules set by the governin body, the high tech footwear has been the subject of a months long review saying it gives competitors an unfair advantage. that's the news update back downtown to you >> sue, thanks so much now the dow fell more than 600 points today, raising all of its january gains on fears of the coronavirus and the impact on the economy let's bring in today's "closing bell" closer, mark mobius, the founder partner of mobius partners good afternoon to you. thanks so much for joining us. what's your take as to how significant the impacts of this virus can be on china, its economy and the ripple effects across the region that you know so well? >> there's no question that it will be impacted in china and in southeast asia you must remember a lot of these countries depend on tourism to a great extent from china

increasingly recently i was in bali and there were a lot of chinese tourists going there and you see it in other parts of the asian area. the interesting thing is that if you look at the global picture, i'm sitting here in mexico city, no virus and i'm so lucky to be here because the only impact here is on corona beer they're calling it the corona beer virus otherwise, in latin america we're not seeing any of this impact so it's very important for us in emerging markets to differentiate who is going to be impacted and what the effect will be. but absolutely correct, the impact will be mainly in china and that will affect the risk of the asian area >> chinese markets have of course been closed this past week what's your gut tell you the size of the market move to the down side when they re-open again? >> i think there will be a continuing weakness but the interesting thing is if you look

at what the short sellers are doing, some of them are beginning to close their short positions, taking their profits. i think there are still a lot of short sellers out there. one of the things you have to remember is the index has a big, big impact because of all the etfs relying on the index. so, if china gets hit, then the rest of the emerging market countries get hit as well because the etfs are in emerging markets generally and the heavyweigheav heavy weighting in china affects the index. we think that the rest of emerging markets will be indirectly hit but not to a great extent i think it will be similar to what we saw in the sars and other viruss, a month, two months of weakness and then recovery. >> the eem which trades here in the u.s. and tracks emerging markets, got slammed this week, having its worst week in years,

down more than 6%. mark, would you tell investors to buy it at these levels? >> yeah, i think it's a good idea to be looking at these because, as i said, it will be temporary. the good news about this particular virus is that you have the world looking at it and you have a lot of scientists working on solutions of course in china with a command economy, they can really put resources behind the cure and the solution so i don't think it will be as long as people expect. >> what's your take, mark, as to china's response to the virus and how open they've been with numbers, with details? do you think they've been fully truthful, and do you commend them for how they've dealt with it >> i think you have a problem with the prove inshall authorities. they wanted to keep things quiet because they get in trouble with

beijing if things get too much out of hand. then they begin revealing what was happening and then the center in beijing started to say, look, we've got to be more open about this because we're going to get a very bad reputation globally. so i think the way they've handled it now is pretty good. you're seeing a lot of cooperation with other countries and the u.s. as you know, trump has offered help >> mark, thanks so much for joining us great to see you as always. >> thank you up next, former australian prime minister kevin rudd will weigh in on how the coronavirus outbreak could impact the market and global trade. as we go to break, here's a look at the worst performing sectors on wall street today

welcome back here's a look at some of today's biggest s&p health care decliners. you can see edwards at the

bottom down 6% a slew of names declining more than 2%. the white house coronavirus task force holding a press briefing just in the last hour >> following the world health organization's decision to declare the 2019 novel coronavirus a public health emergency of international concern, i have today declared that the coronavirus presents a public health emergency in the united states. >> and while the task force says the risk to americans is low, it is imposing travel restrictions and quarantines for those traveling from china let's bring in kevin rudd, the former australian prime minister, current president of the asia society policy institute. welcome back. >> good to be on the program. >> how do you think about the economic fallout of what we're seeing in china right now? >> this is where the economy made science and what can the science tell us and what do we know by way of fact and what remains up in the air. the fact is, number one, that

this coronavirus has a mortality rate much smaller than sars, and we need to emphasize that with people it's about a 2%, 3% mortality rate that's horrible but it's not 10% to 15% like we had with sars or 50% that we've had with ebola. the other one though is more of a concerning factor, the transmission rate, is faster and more expansive than sars that's where we have some problems in making, as it were, the final projections. but, remember the chinese learned something from their handling of sars they kept it secret for three to four months last time. they got this one out by their timetabling relatively quickly the quarantining happened relatively quickly looking ahead i think you're still looking at this thing being in the peaking stage some time in the next two months to three months. >> how big of an impact do you

think this could have on gdp could they extend the current advice not to go back to work until after the chinese holiday and if we do see decline the government would respond pretty strongly with stimulus on the other side >> in terms of the communist party's political legitimacy, they have to seem to be in control of this since day one. xi jinping had a meeting on chinese new year's day that's like having a cabinet meeting on christmas day it doesn't happen. what's all that say? we're really concerned about the real public health impact. we're really concerned about the economic impact and we're concerned about the political legitimacy putting numbers around it though, again, facts rather than fear, the sars impact, material impact from the chinese economy was not all that great i think we need to learn a

little bit from economic history and not just get into panic stations ourselves if there is a big impact, i think we can assume that the chinese government will seek to stimulate their way out of it by alternative injection. >> 50 million people though on lockdown and another difference from sars is the interconnectedness of the global economy right now seems to be much tighter and the stillover effects from china to emerging markets seems to be more intense. >> you're right on the clear challenge beyond all the public health questions we've been discussing which are real and are of direct, immediate, human and compassionate concern for millions of chinese people as we speak. the size of the chinese economy relative to the global economy now as opposed to ten years ago is that much greater in terms of its impact

materially and on business confidence, i would think we may be in line to take a hit how big a hit, i'm not sure, but things are more wide than they were. >> a quick final question if i may, kevin, on your own country in australia have you been back recently and what's your takeaway from the aftermath or almost aftermath of the bushfires? >> the fires continue to rage. in fact, there was a fire around the nation's capital yesterday what's the takeout two major apart from people just feeling as if we were living in an apocalypse. number one is the need to ramp up national contingency planning for the future for dealing with large scale fires on a rolling basis. that means having huge fleets of aircraft capable of dumping huge amounts of water like we've never seen before and the financial cost of that the second thing back home in australia though is a whole new

debate about the need for urgent national and global action on climate change it's made us an even dryer country and we were already the driest country on the planet >> kevin, thanks for that perspective, as always kevin rudd, former australian prime minister up next, brexit day is finally here after years ofaing t wtihe u.k. set to leave the european union we'll take a look back at how we got here, coming up. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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welcome back it's been 1,317 days since the brexit referendum back on june 23, 2016 and in just over an hour's time britain with finally officially leave the european union but it's been a long and winding road to get to this point. here's a look back at some of the key moments in the brexit saga >> the choice is in your hands, but my recommendation is clear leaving europe would threaten our economic and our national security. >> the message is definitely getting through to people that this is once in a generation chance to take back control. >> u.k. voters have backed an exit from the european union >> a negotiation with the european union will need to

begin under a new prime minister. >> brexit means brexit >> her majesty the queen has asked me to form a new government, and i accepted >> that is a very, very poor result for the conservatives they have missed the majority. the pound has fallen. >> the only thing i ask of theresa is that we make sure we can trade, that we don't have any restrictions. >> i'm confident that this takes us significantly closer to delivering on what the british people voted for in the referendum if we went ahead and held the vote tomorrow the deal would be rejected by a significant margin. >> we will need a further extension of article 50. >> i'm today announcing that i will resign as leader of the conservative and unionist party. >> the queen who has invited me to form a government and i have accepted >> on day one of the new parliament in december we will start getting our deal through i am forming a new government.

they will have an overwhelming mandate to get brexit done. >> her majesty has signified her royal ascent for the following act. the european union withdraw agreement, act 2020. >> just about an hour left or so until brexit actually happens and we've got the pound chart, tracking it along the bottom there. it goes back to the start of 2016 back then of course -- if we go back to the start of 2016 you'll see the kind of high before brexit was 150 the low got down to 120. at 132 today, about a third of the way back up. there's still some ground to make up for people wondering if it's going to be a success or not. also point out here some of the equity market returns since the brexit vote day, and the footsie 100 is up about 16%.

the other key factor of course as of today is negotiations can officially begin on potential new trade deals. the u.s. of course thought to be towards the top of that list. >> what i was going to say is we haven't seen brexit yet. yet, today i year and for all of those dooms day. >> brexit happens today. >> right stloo but there is of an 11 month grace period. >> for economics of this and the investor, who are worried, you know, imf who ever came out before and worried about the dire consequences. you won't see it until next year if they manage a deal perhaps they can' least some of the damage but in terms of why there was no dramatic action or drama going in to today's date, they still have torque out the deal. >> food is a hugely significant ceremonial day not economic because of the 11-month grace period for which the uk is paying $32 down today down from the original 40 because they made payments from

the ornl date. on the economy overall, yes, this can't be judged, not at least until next year but probably for five years whether it's a success but what's true, the uk economy has been slower than it otherwise would have been over the last three years but it's also been significantly stronger than many on the remain camp suggested, even in the immediate aftermath of the vote, let alone the actual date. >> the chart of the pound shows you how markets come to terms with something in advance of the actual confirmation. i mean, a few months ago basically hit the lows >> prime minister boris johnson will address the nation in mine nine minutes official brexit time in an hour and nine minutes crazy roller coaster, three years seven months ago. >> i wish we saw footage of us we were there. in it. >> we made a brief appearance in that i guess the more important people were cameron may and johnson, i guess. >> and you know we talked. >> you weren't together in enough shots that's why. >> we did worldwide exchange and

full coverage. >> we talked to the taxi drivers and everyone was saying we want to leave. >> we were telling everyone at home look they were going to leave and nobody believed us >> it was a huge surprise the result another one came in november that year. >> up next we break down the charts to see whether the selloff in software and semi stocks would be a potential concern for this market. when i started cobra kai, the lack of control over my business made me a little intense. but now i practice a different philosophy. quickbooks helps me get paid, manage cash flow, and run payroll. and now i'm back on top... with koala kai. hey! more mercy. (vo) save over 40 hours a month with intuit quickbooks. the easy way to a happier business. if they saw you on the street would your advisor recognize you? at ameriprise, we see you as more than a client. that's why our advisors care about what's important to you.

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because being effective means getting results. welcome back lets get back to mike for the final installment of the dashboard. >> two crucial leadership groups part of tech software and semis neck and neck over the past two years. up until a couple weeks ago you see in the orange the semi conduct etf had a sharp pullback as of today's close below the index 50en-day average that's not necessarily a deal breaker. it has crossed below that half a dozen times in the last seven months software is defense within growth right now that is held up for a while now. we'll see if it's a shakeout semis or more of a correction to come. >> software is defense. >> yes. >> got it. up next another look at today's massive selloff and what it could mean for investors in the coming week. legendary terrain in telluride,

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here a final check on the "closing bell" big board the major averages down sharply today. 2.1%% for the dow, just shy for the s&p. nasdaq down 1.6% meant it was also significantly

negative week. and month for the dow and s&p at least. nasdaq eeked back gains from the month. now some of the biggest s&p tech laggards broad ridge financial down 7.9%. apple down a healthy 4.4%. >> a lot of china linked names there. we are bracing for the chinese market to open after closing for an extended period. >> yes. >> what are we if in for sunday night. >> the u.s. market went down 2%. china was weak before this phase. but you have to imagine it's going to be down a few%. interestingly the board they are listing some of the bigger decliners today. it was also names just up a lot. you had visa which has been amazingly strong apple, of course clicking to new highs. that tells you that the selloff had become indiscriminate, a little bit just people cutting back across the board. that's part of this. we knew we had extremes to be corrected and sentiment evaluation and that process is well underway soo.

>> for china is open you have korea down over 5% for the week. >> yes. >> china has been closed you expect hang shy to be down a bit more than that and pronounced fashion. >> more earnings >> great first week back sarah look what you brought on. >> a long week. >> that does it for "closing bell." >> have a good weekend, everybody. go niner. >> announcer: a selloff rocks walds, the dow dropping more than 600 points are for the worst day since august the major indexes nesting for the year the investors on edge as a deadly virus spreads and global growth slows where do you put your money following a day like today the traders are here to bring you some answers "fast money" live from the nasdaq market site starts right now. >> indeed it does and welcome everybody. i'm tyler mathen in for melissa lee. traders ti