. it is 5:00 a.m. at cnbc global headquarters. here is your five at 5 -- in the red. chinese stocks sinking on their first day of trading in more than a week as that country's government works to stem the selling. this as the death toll rises and the infection rate rises for the coronavirus. over the weekend, more companies and governments taking action to halt that spread back home, stock futures looking to claw back some of friday's massive losses as another busy week of earnings season goes on. and on the campaign trail -- a

new tax plan from candidate mike bloomberg turning heads this morning. and the wait is over -- the lombardi trophy returns to kansas city after a 50-year drought. it's monday, february 3, 2020. "worldwide exchange" begins right now. ♪ at last ♪ my love >> good morning, i'm dominic chu in for brian sullivan. my 49ers congratulations to the kansas city chiefs and coach andy reid and super bowl most valuable player, mvp patrick mahomes taking the lombardi trophy back to kansas city, missouri, for the first time in 50 years mahomes leading the chiefs with three touchdown drives in the final minutes of the game to overcome a double digit point deficit. it was 20-10 in the fourth quarter and the niners lost.

my beloved niners. congratulations to all of chiefs nation we really, really hope you enjoy this hope it won't be a long break before the next one happens for you as well. we'll start this morning with breaking news as stock futures look to bounce back from friday's rout. the dow coming off the worst day since august and the s&p, worst day since october as wall street is now negative on the year in 2020 you can see here dow futures up by an implied 57 points. if these moves hold into cash equities trading at the opening bell at 9:30 eastern time, the s&p up by nine points and nasdaq up by 29 in the bond market, a huge flight to safety putting bond prices higher and yields lower over the course of the past several days has reversed course a little bit the ten-year note yield rising a slightly to a hair below 1.53% two-year benchmark, a little below. this as investors a look to the

ism manufacturing index due out today. a huge number that's had a huge impact on the market sentiment as of late we talk about green on the screen here. there's also green on the screen in european markets. german dax flat. same for the cac the ftse 100 is the pacer on the upside for the european markets. the real action overnight is in asia let's take a look there. that massive part of the map, in the middle there, is china this is the first time chinese stocks, back open for the first time after their extended holiday break, playing a game of catch-up and seeing their worst open in nearly 13 years as investors erase some $420 billion from that country's benchmark index. more than 2,500 stocks traded limit down in china overnight. we've got now team coverage this morning with matt taylor in

singapore and eunice in beijing. matt, we're going to you first because we see so much red, and shanghai shenzhen in the center of it. >> you're right. we saw red throughout the rest of asia as well as other markets fell in line with what the chinese market was doing you're right, back online since the lunar new year break, which was january 23, the last day we saw trade. it was the worst single day drop for the shanghai composite since august '13 let's run you through some numbers. it's this patch of red, the shanghai composite opening down by more than 8% and barely managed to recover any of those losses throughout the day. ending down by 7.7%. you can see 229 points on the shanghai composite about 400 billion wiped off market value 2,500 stocks trading limit down. that's the 10% limit down level. the chinese central bank moving to try to allay some concerns as

well saying the impact of the virus would only have a temporary impact on the economy and that the stock market plunge we saw was driven by some irrational factors or even panic triggered by the herd effect i want to show you hong kong because it managed to e kechlt out a small gain authorities pumping a lot of liquidity to shore up the markets and the financial system, the pboc injecting $174 billion into financial markets to provide support also unexpectedly cutting the seven and 14-day reverse repo rates by ten basis points each there's talk that the loan prime rates, set later in the month, around the 20th, could be cut in coming weeks as well big move in the chinese yuan as well we're used to seeing this handle around the 6 level now the spot level at 7.02 some big orders around 1%.

>> back to you thanks for the update. in china, the death toll from the coronavirus outbreak is rising over the weekend to 361 cases in mainland china, with the first death outside of china also being reported in the philippines. the number of confirmed infections surging to more than 17,000 worldwide as the number of those infected in the u.s. ticks up to 11 at this stage this as the corporate response continues to pour in honda is extending the closure period for three of its plants in wuhan through february 13th this as apple says it's shutting off -- shutting its doors and offices in the mainland china region through february 9th as well yunis is live in beijing matt showed us red on the trading board, first day after the lunar new year holiday

and china's bank reversed the repo rate. tell us that this move means for investors not just for china, but the greater china region and the u.s. here as well. >> reporter: well, the central bank as well as other top authorities here have been battling panicked investors and nervous businesses all day to try to get everyone to calm down as you had pointed out, the central bank had pumped 1.2 billion rmb into the banking system as a way to steady some nerves this is the largest injection on record in a single day also the securities regularity was urging mutual funds not to sell finally, a special task force out of beijing managing the

epidemic control and prevention was trying to reassure businesses that they would be able to get enough masks for their workers and also said that the impact on the economy would be temporary now, this all comes amid more and more signs of the extent of the economic damage in the fight against the virus. there were 10,000 -- more than 10,000 flight cancellations yesterday because of this outbreak also the city of goaunzhou imposed a partial curfew on it's residents. i spoke to a factory worker in and said his company is

requiring each worker to have two masks per day. that's 1500 masks. because there's a shortage of masks, it raises a question of how all factories will reopen which they hope to reopen on february 10th. >> you mentioned the mask situation happening in china with the hoarding, the gouge of prices we've also been tracking the construction of that 1,000-bed hospital being built in china. we talked about how quickly the government did, how quickly it could be ramped up and built and could scale higher is it now done >> reporter: it is now done. the authorities have said it's ready to go and take patients -- so, this is the first hospital the second hospital they said is still -- is on track to open on february 5th this is to alleviate the shortage of beds the hospital has been featured very heavily on state tv

in fact, there's about 21 million people who are watching at any one time the broadcast of this on state tv as well as online it's a way that the -- it's being seen as a way for beijing authorities to showcase the effort that the authorities are making, to try to acleave ate this problem but one other development today, dom, that's been getting a lot of attention has been the foreign ministry in china has blamed the u.s. for not being very helpful in this situation saying that the u.s. is the one that has been creating and spreading fear about the virus and the reason why they're saying that is because they said that the w.h.o. had declared this as an international concern, but said that they didn't have to impose restrictions on travel and now the chinese have said

the u.s. is the one creating a lot of these problems. >> if you want to read more about that chinese concern, that story is up on cnbc.com. thank you very much. back to the markets now. china's losses have been heavy today but maybe not as much as feared seen more by some as pent-up selling pressure from the extend the lunar new year break over the past week and a half or so let's bring in senior market analyst, ed. you heard malt thtthew taylor is this a scenario where investors need to be scared about what's happening with the chinese market action? you wouldn't blame them seeing their manch benchmarks down 7% to 8% overnight. >> i think a lot of people were expecting that possibly we were going to see it open into the maximum 10% threshold and we didn't that's because the pboc showed they're going to be there. they're having a massive amount of stimulus that will be pumped

into the economy they're basically using their bazooka they were holding in their reserves in case the trade war fell apart there's plenty of stimulus that will be hitting the markets. i think that's why we're seeing there's still some optimism we won't have everything completely completely collapse as far as global equities and we'll probably see more globally. >> if the efforts happen globally and if we've seen some selling pressure alleviated, perhaps, because other markets have been used for proxies as the chinese markets have been closed, what do investors do do you still pile into treasuries do you pile into gold? do you buy yen what do investors do given the uncertainty? >> i think when you're taking a look at what's happened, we were at a very toppish market before this virus came into play. earnings were great. consumer sentiment was soaring credit markets were healthy.

valuations were stretched and there was going to be a catalyst the markets are using this as a catalyst to basically see a little bit of profit taking come into play. now you're having a lot of the hedge funds, the high frequency systems, they're kind of driving this market down but the institutional traders -- speaking to traders over the weekend and they're saying, we're going to buy the dip and let this rip there's still optimism this is just a short-term setback. that's why you're going to see equities try to be resilient but there's still so much uncertainty we still could see -- >> so, you're talking to institutional clients on your end who are saying they're going to buy the dip this is as deep as it gets we're only about 2% to 3% record highs in the u.s is that really all it takes right now, is every 2% to 3%, 4% dip is viable and uptrend? >> the fed is on hold. there's expectations if things

get ugly we'll see fed jump into the picture, possibly delivering more rate cuts with this overall uncertainty as far as how long -- when will we see the virus peak if it peaks similar to sars, this could drag out a few more months there's expectations that you're going to probably have more money come back into the playing field because this is going to be a short-term hiccup on production globally and we're going to possibly see there's going to be further momentum for that global rebound story we're expecting to have before this virus came into play. >> ed moya, we appreciate it. when we come back, much more on the virus outbreak. plus, how opec is dialing up its response to the crisis in the oil markets. plus, big changes at the top for wework as it installs a new chief executive. later on, tracking the technicals what the charts from friday's

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. welcome back to "worldwide exchange." let's get a check of other stories with rahel solomon. >> bernie ebbers of worldcom has

died he was 78. he was convicted in 2005 for his role in one of the biggest corporate accounting scandals in history. he had been in prison from 2006 until december 21st. a judge said it was within her discretion to order the early release after his lawyer cited severe medical problems. wework named sandeep mathrani as new ceo. he's been an executive at several other firms including vornado realty trust they began a search for new ceo after neumann was ousted. row cue and fox reached an agreement. they had been in a dispute over distribution fees and roku threatened to pull fox's apps and channels, which includes fox sports

a deal was reached before the super bowl i'm sorry for your 49ers. >> it was a great season but thank you very much, rahel i'm sure the niner fans will look at the positives. >> and andy reid won a super bowl. >> finally, as a philly girl. >> i'm happy to see that. >> rahel solomon, thank you. still on deck for the show, earnings season rolls on with key names set to report. including alphabet and big pharma the cnbc scorecard is up next. >> announcer: today's big number -- 19.2%. that's how much the s&p oil and gas exploration and production etf, the xop, fell in january. that's its worst month since september 2011 this is the age of expression.

but shouldn't somebody be listening? so. let's talk. we're built for hearing what's important to you, one to one. edward jones. it's time for investing to feel individual.

what that music means. investors getting ready for another busy earnings season more than 80 s&p 500 companies and two dow components are set to report, including alphabet, the parent company of google, disney, twitter, uber, honda, you name them, all big companies set to report -- not all of those s&p 500s but quarter to date, look at this, 226 s&p 500 companies have reported that's about 45% of the index. we're almost at the halfway point of the season.

if every single company left to report, reports in line with analyst estimates, blended share would be up 1.1% from last year. now, just like in the third quarter, the energy sector is driving essentially the entire energy decline if you exclude the energy huge drop, that earnings blended growth rate is up to nearly 4% 69% of the companies that have reported earnings have come in above estimates. 10% of the earnings have met estimates in line. 20%, you can see here, have missed expectations. now, blended revenue is also up about 4.7% in that quarter so far versus the fourth quarter of 2018 this is above the value of 4.1% we saw just back on january 1st. those revenues kind of coming up actual revenues are up 3.3% versus the same quarterback in 2008 so, so far, the earnings season,

a positive driving force for the markets. straight ahead on the show, combating the coronavirus. the united states banning entry of travelers coming from china those details coming up next and futures right now, by the way, pointing to gains 85% implied open for the dow if these futures moves hold until the opening bell stay tuned you're watching "worldwide exchange" on cnbc.

it looks like it's going to be a green open for stocks in the u.s. the s&p would be up by 11 points if these futures moves hold to the opening bell for cash equity trading. the dow jones uimplied up by 84. straight ahead on the show, recapping friday's massive selloff and where investors today should be looking for buying opportunities plus, it's your money, your vote in the hawkeye state. a live report on the ground for what's expected to be a very big day in iowa when "worldwide exchange" returns.

bouncing back. stock futures pointing to a higher open after friday's wall street rout. well off their highs of the session. where investors can look for safety that's coming up. not so lucky in china where stocks saw their worse open in 14 quleerz after an extended holiday break. a championship 50 years in the making as kansas city hoists the lombardi trophy after a fourth quarter nail-biter and huge comeback victory over the niners it's monday, february 3, 2020. you're watching "worldwide exchange" right here on cnbc ♪ ♪ the wait is the hardest part >> and the wait is over after 50

years in kansas city, missouri thanks very much welcome back i'm dominic chu in for brian sullivan congratulations to the kansas city chiefs, andy reid and super bowl mvp patrick mahomes taking the lombardi trophy back to kansas city for the first time in a half century. mahomes leading the chiefs with three touchdown drives in the final 7 to 8 minute of that game to overcome a ten-point deficit over my beloved san francisco 49ers. congratulations, kansas city chiefs chiefs nation, chiefs kingdom, you have a super bowl trophy and you should enjoy it. let's get a check on this morning's other top headlines. francis rivera is live in the news room with the latest. good morning >> good morning to you the final phase of president trump's impeachment trial gets under way today. on friday night the senate voted against hearing from any new witnesses or allowing new evidence, setting the stage for an all be assured acquittal on wednesday. today house impeachment managers will forge ahead in their final

arguments to try to convince senators to remove the president. the u.s. is taking emergency steps to protect its sit zi citizens from the deadly coronavirus. new travel restrictions are aimed at combating the virus they prohibit foreigners who have been in china the last 14 days from entering the u.s the move comes as the number of cases continues to rise. more than 300 have died and nearly 18,000 people have been infected the number of cases in the u.s. has risen to 11 with the most recent in california. you were talking about it for the first time in half a century, not to rub it in, but the kansas city chiefs are super bowl champions the chiefs trailed 20-10 going into the fourth quarter and then patrick mahomes got to work piling on a quick three touchdowns to win it 31-20 the lombardi comes back to kansas city for the first time since january of 1970. the victory parade is set for wednesday morning. each player will take home

$124,000 bonus plus the $87,000 they earn just for making it in the postseason yes, of course, your san francisco 49ers earn some as well i mean, it's all about the trophy, we know. so sorry. >> i have to tell you, i knew the lead wasn't safe in the fourth quarter because every team, the texans, the titans and even the niners knew just how good patrick mahomes was he showed it again >> well, you stayed up for, it you deserve a long nap here. >> that's a lot of coffee right now. >> yeah. >> thank you very much for that update we appreciate it first, let's check out what's happening with the stock futures pick halfway through the 5:00 a.m. eastern hour as you can see here, we would open up by 91 points for the dow if these futures gains hold in the opening bell the s&p is up by 12 points the nasdaq up by 37. trying to claw back some of those losses we saw on friday. remember, the dow coming off its worst day since august and the s&p 500, it's worst day since

october as wall street is, yes, negative on a year-to-date basis. i know it's just february, but still, those moves yesterday, very massive to the downside the bond market was also going lower in terms of yields as people bought up the safety of treasurie treasuries those notes rising in yield for a bit. 1.53% the last trade for ten-year benchmark treasury note yields and 1.34% for the two-year note yields as well that's the way treasuries are shaping up across those parts of the yield curve. as investors look ahead to the ism manufacturing number due out at 10:00 a.m. eastern time today. it's been a key metric, a key number that's had a lot of influence in market sentiment of late that ism has been moving lower over the course of the past several months let's now go around the world, check in on the early trade in europe. you can see here, the european trade generally green. albeit modestly. the cac up 0.25%

and the dax up by 0.25 of 1% as we spin that global overnight in asia, in china, as you can see there, chinese stocks are back open for business after their extended holiday break, playing a game of catch-up and seeing their worst open in nearly 13 years as investors erase some $420 billion from that country's benchmark index more than 2,500 stocks traded limit down in china overnight. and that country's central bank also taking drastic steps to help support markets there injecting a record $174 billion in liquidity by open market operations as a result, the shanghai composite, though, still down 8% to close the hang seng in hong kong up 0.2 of 1% and declines for the nikkei in japan. the worsening spread of the coronavirus. the death toll from the outbreak rising over the weekend to 361

cases in mainland china, with the first death outside of china also being reported now in the philippines. the number of confirmed infections surging to more than 17,000 worldwide as the number of those infected in the u.s. ticks up to 11 cases now, this as the corporate response continues to pour in. honda, for one, extending the closure period for three of its plans in the wuhan area through february 13th and apple says it's shutting off its stores and offices in the mainland through february 9th the likely hit to global economic growth and drop-off in demand due to the virus taking its toll on oil markets is happening as well. you can see that recent decline in crude oil really exacerbated over the course of the last few weeks. wti currently trading $51.60 opec is weighing into the emergency itself with its response our own dan murphy is in abu dhabi with the latest.

good morning der-- or good afternoon. >> we're hearing opec could potentially cut in the million barrel plus range. a million barrels. that's the message from helena croft going on record with cnbc as coronavirus pushes oil prices down double digits in the month of january as cnbc has reported we expect opec's joint technical committee is going to hold an emergency meeting in the coming days, seeking to come up with some kind of emergency plan to arrest the collapse we've seen in the price of oil. we also understand this joint technical committee meeting will be followed by a full opec meeting in vienna, which is now being pushed forward from its original march 5-6 schedule. on the phone, helema croft says this is a go big or go home

meeting. you have to come up with a substantial reduction in order to prevent the market from further tanking. saying this measure could be a cut of 1 million barrels that would be in addition to the 1.7 million barrel reduction we've seen from the opec plus group that was announced late last year. as you pointed out, we have seen traders fretting on how coronavirus could potentially impact global growth that, of course, also filtering into overall crude oil demand. china, we know, is the world's largest consumer of crude oil. of course, a lot of the forward demand prospects for crude oil are also based on projections out of china this is seriously been impacting the oil market as i pointed out, we've seen prices falling more than 12% in the month of january and showing no signs of stabilization just yet. >> dan, you bring up an interesting point here with regard to opec, the demand picture, what the uncertainties are. are there any estimates out there right now, is there any

view or consensus kind of taking hold about just how much china has been affected and how much their oil demand has dropped because of coronavirus >> absolutely. this is the question, isn't it, this is the trader's mind. it's the question on every analyst's mind as well we need to work out exactly how the coronavirus has been impacting crude oil demands. the folks over at s&p global have been crunching some numbers, giving us the best case and worst case scenario. they say worst case scenario because of the travel restrictions and airlines canceling flights to certain destinatio destinations, demand drops by 2.6 million a day in february and 2.4 million a day in march we're talking about cuts in the order of -- a magnitude we simply haven't seen before something that opec would certainly have to attempt to

mitigate at this upcoming meeting if they do choose to do so in they are adding demand would drop by 900,000 barrels per day in february and 650,000 barrels per day in march. either way, even under the best case scenario, crude oil still takes a serious hit off the worsening of the coronavirus. >> the latest with the oil market in relation to the coronavirus. let's get a look at other top stories with rahel solomon >> ryanair may have to delay growth plans due to the delay of the boeing 737 max with more than 200 on order. they hope to have a quarter of the jets flying by summer 2021, which is a year later than originally planned last month boeing did not expect

the max to resume service until the middle of this year. ceo of mastercard is talking about attempts by government to break up global payment system to regional or national systems. telling the financial times that the cost of building siloed systems in a world where citizens travel globally is, quote, really stupid he sees more governments edging towards nationalizing payment systems and worries consumers could shift back towards using cash. forever 21 reaching a deal to sell the retail chain to a group of buyers, including mall owners simon property group and brookfield property. the consortium will pay $81 million for the company which filed for bankruptcy in september. forever 21 will seek approval for the group as the lead or stalking horse bidders at a court-supervised auction. >> forever 21, the malls. >> yeah, i know, that's where i shopped as a teen. we'll see if it can revive itself. >> i still find comfort in going to a physical store. >> how about shopping at forever

21, do you find comfort -- >> i'm not the target audience for forever 21. >> i don't think to. >> rahel solomon, thank you. coming up on the show, it's your money be, your vote tonight's iowa caucuses will officially kick off presidential election season. big economic issues like taxes, trade and tariffs are dominating discussions. we've got a life report from the hawkeye state coming up next. plus, presidential hopeful mike bloomberg unveiling a $5 trillion tax plan. the details and what this could mean for companies and investors when "worldwide exchange" comes right back (janine) ghostbusters!...

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helped by that comment ulta grup graded from buy to neutral with $307 per share. among the catalyst, the analyst argue the slowdown is cyclical and argues this is an attractive entry point. meantime, goldman sachs downgrading exxonmobil from $72 to $71 on deck for the show, hold onto your hats we could be in for another wild ride on wall street. futures pointing to green arrows at the opening bell. but there are some big tests ahead. we'll get you ready for today's trading session. and a reminder, you can always watch or listen to us live or on the go on the cnbc app. "worldwide exchange" is back in just a moment.

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welcome back to "worldwide exchange." the head lines you need in 60 seconds. jeff bezos is being sued for defamation by his girlfriend's brother. michael sanchez accuses the amazon ceo and security analyst of falsely telling reporters he leaked, quote, graphic nude photographs, unquote, to the national enquirer. "bad boys sequel" topped the box office, now topping $148 million. universal's "1917" with the second spot bringing the u.s. total to around $120 million and universal won third with

"dolittle". macao casino drops due to coronavirus. analyst warn the numbers will get worse as long as visiting restrictions remain in place snoop democrat democratic hopefuls have descended on iowa for the caucuses the poll everyone would be talking about this morning would have come from "the des moines register" but they canceled the release because of complaints from pete buttigieg's campaign about how it was conducted k kayla joins us from iowa what can you tell us ahead of that big poll? >> reporter: without that poll over the weekend, we're looking to national polls and older state polls to figure out the directions of this caucus.

in iowa you don't put a piece of paper in a ballot box. you show up to stand in person with your candidate. bernie sanders says that's going to be make or break. >> if tomorrow night the voter turnout is low, we're going to lose if the voter turnout is high, we're going to win >> reporter: state strategists in iowa are expecting are what they call a two for one, with one progressive and one moderate expected to split the lion's share from voters and both camps claiming victory depending on the policy direction they want in the latest poll from nbc news and "wall street journal," bernie sanders has a lead over biden but the latest poll from monmouth shows biden over bernie

sanders. straw polls, or with coffee beans, sanders is leading there, too. >> in a college town, if you say you're going to forgive student loan debt and give free tuition for public universities, you'll get a lot of support >> reporter: seth dudley is the general manager of the restaurant he said the economy is strong but getting by for a business or a consumer isn't cheap >> the cost of living here in iowa city is quite high for a lot of people need to work multiple jobs to make ends meet. rents just keep going up and up and up >> reporter: dudley won't say for which candidate he will be caucusing tonight. he wants them all to keep stopping through his establishment and bringing those crowds but certainly all of the events over the weekend have been sort of a crescendo, dom, up to tonight as voters are going to be not casting their ballots but

showing up later this evening to stand with the candidate they support. it's really going to be a momentum game. >> it's a visual picture these caucuses are great because they generate such human elements for these type of pollin pollings, if you will. take us through, if you wouldn't mind, we know the national polls have shown a very -- maybe two-headed race right now in iowa is there any real chance for any of the other up and comers to make headway here? is it that critical as we head towards other primaries and super tuesday next month >> reporter: we talk about the fact that sanders and biden are at the top of the poll but buttigieg and warren are not far behind warren was leading in early fall, buttigieg was leading late fall a lot of these candidates have been able to make headway with voters at different points lots of street signs for andrew yang strategist say don't count him out. even a third or fourth place

finish is possible for him in the latest nbc/"wall street journal" poll was showing michael bloomberg surging. he won't be participating in tonight's race but his ad buys are starting to register with a lot of people in the hawkeye state. >> absolutely. him and president trump both with campaign ads in last night's super bowl as well michael bloomberg targeting gun control. now, kayla, i'd like to maybe stick on that because michael bloomberg isn't competing in iowa, like you said, but his tax plan is getting a whole heck of a lot of attention this morning. in a proposal up veiled over the weekend, bloomberg says he would unwind corporate tax breaks imposed by president trump and impose a 5% surcharge tax on incomes above 5 million a year this is a big development. maybe not one we were surprised with given the democratic tilt of michael bloomberg these days. >> reporter: no. and certainly, dom, compared to the other tax plans we've seen from this field, it's a

relatively centrist plan it doesn't really create the type of disruptive change that the sanders and warren wealth taxes would, but it would create more disruption than the biden, klobuch klobuchar wing would bloomberg trying to find a way to resonate with democratic voters a lot of people in iowa talking about inequality, talking about not having enough money in the middle class to get by they do feel like corporations, wealthy individuals, are getting more than their fair share in this economy. >> before i let you go, i've heard a lot and read a lot about a certain pizza place in des moines called fong's pizza have you had a chance to try their pizza yet? >> reporter: we have not had a chance we were canvassing voters but we'll put it on our list. >> kayla with the latest there now back to the markets.

chinese markets dropping on china's first day back after the extended lunar holiday the shenzhen is like the nasdaq composite, if you will the u.s. equities picture very different. you can see the dow would rise by almost 100 points if these gains hold into the opening bell for regular stock trading. the s&p up by 13, 14 points and the nasdaq up by 42. joining us from chicago, jim yurio. great to have your perspective are we buying these dips and was friday enough of a selloff to get people interested? >> i'm not i think today's rally is a little disappointing it had two things going for it on both the last two fridays we trade very heavy because, you know, the risk coming up of the two days off it would stand to reason for me on mondays we should take some of that back to take 13, 14 points back on the s&p is not quite good

enough plus, there was a fairly large injections for china and we only have a little bit. one thing i want to point out, when something like this comes at an all-time high, the pandemic, the coronavirus scare, the stock down move is started by that but it could easily morph into just a person reassessment of risk like, wow, we had too many stocks that's the second leg of the correction i think if i see - >> 7% to 10% correction, it doesn't happen very often. it certainly havenlt hasn't happened over the course of the last 18 to 24 months at all. is there an opportunity, if it were to happen, to then put a shopping list together if so, what goes on that shopping list? is it energy is it materials? is it tech and com services or do you go towards utilities and

consumer staples, dif depd payers >> not only does it not happen very often, it doesn't happen enough 7% to 10% correction is good correction of the hedges when that happens, i will look at the things that have been the most predictable, that's technology probably. i like what you're saying with energy oil prices have been kept down so low because of what's going on domestically, but it's been several years since we've had any bang for the buck there. i think some of those dividend payers, eye bougi've bottom alr. i think they suffer in the correction as well those will,s juxtaposed against interest rates if we correct 7% to 10%, you can bet the ten-year is going lower. >> the technology sector, we're showing that chart, big declines on friday. it was a big leadership type sector in 2019 mega cap technology and communication services have been a huge driver of the market rally. are those on the shopping list

as well if we see a broader pullback like we've seen over the course of the past couple of days >> if the big global names get hit really hard because this is a big global story, then, yes, i think absolutely i think that -- you also mentioned things like utilities and staples. i don't think they're going to get hit very bad if we have a 7% to 10% correction. things that do play a dividend, those will be on my shopping list for sure. by the way, too, how about gold and ten-year. >> i was just going to go there. this is perfect. i was just going to ask you, do you then stick with gold and long-term treasuries >> yes because the one thing the fed has showed me is that they react very quickly to any sort of market stress. and, god forbid they ever mentioned asset prices but i believe they're looking at that closely, too i think they get scared when stocks start to decline. those things like gold and ten-year i'm long those already

and plan staying that. >> long gold and long treasury still a little more defensive. jim iuorio, thanks very much good to get your thoughts. that does it for "worldwide exchange." we will not see the losses we saw in china the dow jones pointing to nearly 100-point gains. "squawk box" picks up all the coverage and it starts right now. good morning investors wiping $400 billion in value from chinese stocks overnight. the markets reopen from an extended holiday due to the coronavirus fears. the u.s. imposing new restrictions on anyone who has recently traveled to china we will take you live to beijing. back home, stock futures looking to claw back some of friday's massive losses as another busy week of earnings begins right now it is monday, february 3, 2020 "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" on cnbc. we're live from the nasdaq market site in times square. i'm becky quick along with andrew ross sorkin and michelle caruso-cabrera joe is off today we'll start by taking a look at stocks look to rebound from friday's rout. it's got a lot to come the s&p coming off its worst day since october and the dow and s&p actually erasing all gains they've seen for 2020. nasdaq actually ended up for january with about a 2% gain you see the dow ended down by 603 points on friday let's take a look at this morning. there are some green arrows. again, nowhere near the losses we had seen, recovering from the losses we had seen on friday the dow is