reacted. maybe that's fair. >> there were so many stocks that went down but i wonder what happens when they start opening tonight, when they open up again for trading. >> oil overreacted, saudis might cut half a million barrels a day. >> up 13 cents the last time i saw. even with the news tells you the united states is the real mover. >> michelle thanks for joining us "squawk on the street" is coming up join us again tomorrow ♪ we get to see kc chiefs make 'em taste these cleats ♪ ♪ welcome to the red kingdom >> super bowl champion kansas city chiefs and coach andy reid. welcome to "squawk on the street". i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. we're coming off the worst days since august for the dow, futures are up chai that stocks reopen and the central bank adds the biggest cash injection since '04 oil below 52 gold got within two bucks of 160

overnight. the market bounce back, stocks bounce to a higher open after friday's 600-point rout, despite the chinese suffering biggest declines in years. coronavirus claiming more than 360 lives, more than 17,000 confirmed cases worldwide and the question for the markets is just how fast could this spread around the world and hurt the world economy? and facebook ceo preparing for a backlash, what the social network is planning and why mark stuckerberg says it's going to "piss a lot of people off. "stocks are looking to recoup some of friday's big losses. the market impact of the coronavirus was evident in china overnight. the first trading day since the new year holiday, shanghai closed down nearly 8%, wipes out nearly 400 billion in market value. friday's sell-off drove the dow and s&p into negative territory for january. the nasdaq up 2% for the year but everybody's talking about the degree to which china's shut down and how responsible though

are for global growth. >> i was down at the super bowl fortunately and you speak with -- they have, the ceos gravitate toward and the ceos i talked to, not one felt that it was so-called buying opportunity, all very concerned, some much more concerned than others any company has business in china, i come bay and say there was a powerful "lancet" article, a rigorous medical journal and the article basically said look it's very difficult to contain at this point so it wois worrise and not a buying opportunity >> you talked to david tepper and he had comments, too take a listen. >> you got to try to figure it po out. it ruined the environment. >> what's important i know you talked to joe, it was a good time but it's a game changer, isn't it >> you have to be careful because it may be a game changer, so you just got to be

cautious two weeks ago before the virus it was one thing and it's a different environment right now. it is what it is >> i think it's important to recognize that how hard it is to listen to a hedge fund manager who is really great. i've known david since 1982 and he's a rigorous guy. i was interviewing hall of fame guys and players answer general mana managers and having a great time i threw in a question of this because joe kernan got on the call saying it was positive. he wanted to make sure that's no longer the view. >> allocators of capital are asking the same questions. >> right >> there aren't a lot of answers clearly. hedge funds can get people on the phone, talking to virology professors at the chinese academy of science trying to understand what's going on everybody's doing that, jim, to understand the impact. i can see firsthand is talking

to people who are supposed to go to singapore today, not going, for a business meeting business meetings right now in the united states, if anybody has been to china last two weeks, you can't come to the meeting or the meeting is put off. if you've met with anybody separately who is in china and you're planning on coming to the meeting, you can't come to the meeting. so this is happening in that way and things are slowing down. >> many of the pharmaceutical companies are saying we can get a new vaccine. it takes time. they're counting on the farm chain to work and the numbers from, cowan said there could be tracking a minimum of 65,000 cases in china there's a tremendous let's say skepticism about how the prc has treated this a lot of anger about it, by the way. >> on both sides >> i think the rancor toward the

united states is unfortunate if you step away i don't talk to anyone who says look, jim, assure people, and one of the things that i said to david was, could you reassure us, david he said why? why should i reassure? that's certainly not the right tenor. it's more important to not be on the margin i found it sobering and anyone, many people on travel at the super bowl and i felt those stocks need to be sold >> we'll talk about the rcl downgrade today. why does morgan stanley come out again and say support at 3100, tom leigh, well-known stubborn bull >> right >> even at 3011, the 200, they think that is more solid footing. >> look, i think the line in the sand is not worthwhile, given the caucuses tonight, because you kind of have a one-two punch. you could come in tomorrow and maybe a socialist wins the caucus the socialist says don't own the bank stocks, and then the ten-year says don't own the bank

stocks bank stocks are a huge part of the s&p. a lot of tech is china >> health care weakened on the sanders view of a potential sanders win tonight. >> so look, i'm not saying sell everything that's a sucker, systemic risk, 2007 i am saying that tepper, say it's a game changer, you have to be cautious. i'm not going to take my queue from anyone. i love david tepper. i will listen to him and try to be thoughtful and take him into part of the -- >> to your point, though, you can take in as many inputs as possible but it's still novel. >> they keep saying that >> the coronavirus itself is novel. >> therefore this is not something we completely dealt with it is similar to sars, but not the same certainly china's economy has grown enormously since sars. it is similar to other same, and so it's just very difficult to know, and the world has changed since the last one, whatever you want to call it. >> you're so right, david.

when i speak to the medical profession instead of making calls at the super bowl i come back to the same thing which is we don't have everything let's hope the quarantine works. we have something and a year from now could be very good. none of these things makes me feel like i got to buy tesla, and i like tesla i think tesla is great but it's up 25. i say don't buy this rally how about that >> you talked to tepper about margin and leverage. take a listen to that as well. >> can i just get from you, it's not the time if you're a long-term person to quit, right? >> you know what i think if you're a long-term person you better not be a leverage >> all right, concise. >> yes you can't tell people what you want to hear i thought he'd say look, i don't think this is something that will be with us for a long time. i subsequently talked to david the next day, just trying to clarify again, and he basically said listen, if you're a margin,

don't. i think a lot of our viewers own margin what does that connote you could lose a lot of money here because when you get hurt on margin, you get hurt, but david, by no means, i'm going to be sure about this, is saying i want everybody out that's not his job he's protecting his own. >> first of all, he's not a medical professional he has no more information than any of us have he's just a guy who understands and knows markets and investor psychology >> that's why. he andis both read the "lancet" article, for lack of a better team is very stephen king like it's very distant in the sense there will be clusters that be mini epidemics and the mini epidemics are in cities where people have come back to in this country, and again, is it scary? i don't feel assured, when you go in an airport, and you see so many people with masks, and also dramatic decline in people, you say wow, am i taking, you get

very let's say unsure of yourself, how about that >> that's where we are and probably where we're going to be for a while. maybe until may, when the warm weather comes. >> "lancet" says april the other thing is vaccine remember, we're a rigorous country. you have to test it, but the chinese, i don't think they have the time in test >> really quick, i wonder, jim, none of us are medical professionals, how many cases would you need to say see in new york before you took active steps to change your lifestyle >> wow >> he drives around in a car most of the time >> stop it, i go out to eat. >> not like the subway like you and me >> we're all doing the calculus. >> there are certain places that seem like natural incubators that i would try to be smart about. i carry purel, i try not to touch my face, i had a mask.

>> i brought gloves for the first time i'm not cold >> i have medical gloves i think that why not be cautious what does it cost you? >> it's a hedge. a free hedge of course the death toll now above 360, and 17,000 cases. we want to check in with our eunice yoon and get an update on more information we got from china overnight. >> hey guys. china has officially returned to work however, at least 24 provinces and cities have instructed their companies not to restartal after february 9th more than half of china is still shut down. those places account for more than 80% of national gdp and 90% of exports the port city of shenzhen told its companies that they shouldn't restart until further notice and then other localities are imposing new types of

restrictions for example, the city of wenzhou, which is famous for its small and medium-sized enterprises, has imposed a partial curfew household has to designate one person in the home who is able to go out and then buy daily necessities every other day. so over 10,000 flights yesterday alone were canceled, and part of it is because other countries are restricting travel for chinese nationals, as well as china-based travelers. the chinese have been blaming the u.s. for that situation, the foreign ministry said today that "creating and spreading fear, the u.s. was the first nation to impose a travel ban and evacuate citizens, when they pointed out the w.h.o. says that this is not necessary. china has been trying to showcase that it's on top of the situation in wuhan the state tv has been

broadcasting the now completed pre-fabricated hospital, which was built in a matter of days. it is currently taking up coronavirus patients, but just a sign that it totally normal here just a couple of ordered takeout for dinner, and it came with temperature checks for the chef, for the food preparer, as well as the courier. >> that's a lot of friction on economic activity. eunice yoon in beijing, we'll check in with you later on when we get back cramer's "mad dash" and upgrades and downgrades back in a minute at outback, steak & lobster is back. oh no! it's gone! phew! it's back, with lobster mac & cheese. it's gone again! it's back, with shrimp now! steak & lobster starting at only $16.99. hurry in before these three are gone again. outback steakhouse.

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time for "mad dash" as we get you started for the trading week ahead 15 minutes from now things will get started here we're spending time on this virus but let's get back to some stocks nike got an upgrade that got your attention >> two updates, ubs, matthew boss said good things and jpmorg

jpmorgan we did talk a lot about the virus. here are some guys saying look, it's come down i'm not saying don't worry about china. the new ceo john donahoe, the s.a.p. met to service now. >> inherited service now and doing extremely well >> i think donahoe will do a fabulous job you felt we have this under control which is certainly reasonable to believe. you have a great story that's knocked down because a lot of the growth is coming from china. so i just wanted to caution people that while i don't think it's a buying opportunity, there are other really good people who think it is, so nike is the one to watch how about that let's watch nike to see if the upgrades offset what are obvious and real worries about china >> china is an important part of the business >> yeah, look, united states is very strong, getting better and china's been great the whole

time and they're very much in league with the prc, part of a program to keep people in shape. it is an amazing well-run company. to you want to bet against it when donahoe is coming in? wait and see we might be overreacting if we sell everything. >> we'll keep an eye on shares there, which appear to be up, as does the overall market at least. 13 minutes from now we'll get the answer of course when we begin trading. check out our podcast, listen to the opening bell hour, that is the 9:00 to 10:00 hour every day, wherever you want to listen to podcasts. stick around opening bell and a lot more corporate news to get to this morning. ge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory...

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coronavirus of course is the important thing to watch but we are set up for a big week otherwise with the iowa caucus today, state of the union tomorrow, 86 s&p earnings this week with alphabet and nxpi tonight. futures look good and the opening bell is in ten minutes

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you're watching "squawk on the street" live from the financial capital of the world the opening bell in seven minutes as we have started a big week here, regarding earnings obviously, politically important and as china gets back to work, oil is closing in on 51, jim >> yes >> we've been talking about crude for so long and what's happened to sentiment around fossil fuels senator sanders retweeted something you had to say last week to becky during your quack hit how you're done and sanders says why are wall street investors giving up? >> i want to be careful what i'm

saying the stocks i'm done with fossil fuels are here to stay whether we like it or not. it's not just me you'll read this unbelievable piece by goldman sachs, exxon downgraded to sell, challenge free cash flow what this says basically if you read between the lines is, these are not wasting assets we're going to wean ourselves off of oil and it's here sooner than we think, which means the growth prospect, free cash flow and natural gas are down and a lot of the executives in the industry reached out and says you know we can't get rid of fossil fuels it has nothing to do with getting rid or not it has to do with the stocks there's a lot of millenials. cash flow is there >> we talked about this particularly over the last few months, as esg we keep hearing it b it. people think what are they talking about? the assets that have moved into these strategies that at least include a look at sustainability or governance or any number of other important aspects that go

beyond just a simple return on capital, invested capital or any other metrics you want to typically use are growing sizebally and with blackrock's announcement of a couple of weeks ago regardless of how much of it was a publicity stunt or not, you have to consider that the number of active managers who are available to actually be the incremental buyer of a stock like exxon, or chevron, is shrinking. >> it's shrinking, and david, you know, one of the things that always changed my mind, i spent a lot of time with satya nade a nadella, one of the two largest companies on earth he doesn't want to talk about azure. he wants to talk about rolling back all the carbon that his company has ever had, and then he's talking about scope one you've got these different stages where what happens is they want their suppliers to cut back on carbon and then you see where is the demand for cars

tesla and start thinking about countries, states, maybe california, that say look, you can't do this. you say why do i really want to be in the stock of exxon it yields 5.6 but so what? >> to that point on chevron's call friday the cfo said they can expand cash flow from operations with less capex than their peers. why can't they buy our love? adjust the cash flow and just give us a little treat here and there with the dividend. >> i think the answer is how does a company like chevron become carbon neutral? >> one of these companies is going to make a significant change and step in that direction. i don't know who it will be first. >> someone is going to plant a billion trees to offset what they do. >> make a diversion in their business model >> yes >> not that they're going to wean themselves from fossil fuel but they are going to do something that is significant beyond, i don't know, maybe they'll buy every windmill in the world, i don't know. >> look, mark ben ihoff, this is

planting a billion trees, chevron we'll repopulate the amazon with trees and offset what we do you know what? maybe there's good ones and ones that aren't as good. >> the world is still going to be use 100 million barrels a day. >> i remember leading a protest at haar record for them to divest south africa, and what was amazing was, the stocks were going up every day i said do you care about your return if you do, you can't be in the stocks the money managers are fleeing south africa it does feel the same way. >> again, listen, it's hard to imagine in some ways but does something significant and sees a real reaction in the equity markets as a result, that could be a moment. >> right >> it's not going to stop them having to get the stuff out of

the ground and sell it >> you look at brian she field, i had matt gallagher on. brian shfield's legendary pioneer and he goes we're getting down to the 5% there's a lot of oils that flare 25%, 30% those are companies the sierra club gets their list, i tell you you'll see protests. i have been involved with protests -- >> the u.s. government no longer has cut back on all of these regulations, is going to be superseded by the desires of investors? >> i think that the government c can do whatever it wants you'll never buy coal. >> are you going to flare methane? >> they're saying you have to cut down if they want to get, if they want millenials to buy them isn't like at robin hood they're lining up 10 million accounts. >> fewer marginal buyers

>> that's it i'm done with them because they're loser investments. i don't see saudis, whatever -- we had iran, attack united states >> and the saudis. >> and what that one-t >> that is one reason why "the journal" says opec is considering another cut of 500 to 1 million barrels they'll have a meeting tuesday and wednesday, not helping crude today as we get down to 51 you said 50 is a demarkation line in your mind. >> i'm not saying china is offline because it's a big country and 50 million they're marking. i am saying that the idea that you think that they're going to get through this thing and not, and use this much oil is fatuous, it's a fatuous proposition. david, fatuous >> f-a-t-u-o-u-s

>> is it the s.a.t. this weekend? >> spelling. >> i don't know'chinese need more natural gas [ bell ringing ] >> let's get to the opening bell, at the cnbc real time exchange down here at the big board a new name and tickerand epop of the morning, entertainment and lifestyle content platform guys, we'll see, as david mentioned the ton of upgrades. nike at the telestrator but ulta goldman ups to buy, target 307 >> you think they're not that crazy about it but that's not true this is one of the businesses that could have exceptional returns. the last quarter i liked very much a lot of people didn't, butter this an innovative company.

mary dylan doing a terrific job. it is a domestic retailer. i think people want domestic retail not levered to china. there's very few that is less levered than ulta. >> is that the case, yes >> yes 's 's estee lauder is a company i love but they have a lot of business in china. ulta has a huge business with estee lauder and doing better than department stores offer better value goldman's point the slowdown is cyclical in nature and nothing secular. you were talking about a piece argues 10% of the eligible customers are taking up apple on their offer for a free year of apple tv plus, 10% >> my work says that forget apple tv it's not a hobby tim cook told me and told josh it's not a hobby what matters is the credit card. doing it very, very well

cost of acquisition much lower than anybody else. tony, i'm going to give in with tony and say tony is out there, and he's a really good, he's a gauge of the negative center >> he's not constructive on apple for a while. >> he's always thoughtful. i think what he's thoughtful about often is important, but there is often something other things driving things like china wasn't supposed to be that much better he does this, apple tv i wish he talked about china and what it means to have their offices shot and not selling apple in the retail. that's not what he writes about. apple tv, tim cook is going to will that good if he talked about apple, the credit card, which he doesn't seem to want to do, thii think numbers are extraordinary. >> apple is down a 1.5% and dow is up 0.5% at least. >> you got the email this weekend about them closing >> they're closing a lot

>> right, after thinking they had just closed some, apple is very cautious, talking about its employees. >> we are coming off, of course, we'll get alphabet's numbers after the close today. >> right >> which is going to be important certainly and we're coming off that really incredible quarter it was from amazon >> amazon was amazing. >> the stock reacted positively on friday, though perhaps less than it otherwise would have if the market had not been down significantly on the day >> right meantime tesla is up again >> so much for bezos not being engaged, right engaged as in engaged -- >> no. >> i meant engaged in the business >> why do you do that? >> did you see him down there? >> of course yeah, i saw him, hey, jeff, he turned around. "i love your work. everyone loves my work that's what you say. you can never go wrong with "i love your work." when someone sees my wife "i love your work." >> when they see me, they don't know who i am. >> they said you're the guy next

to -- >> that sits next to the other guy. and that nice guy. >> that's okay >> my wife was saying you spent time withjeff? i said yeah, you see, i went like this, he went like that, we shook hands, we're friends >> right, you guys are close >> we're close >> but my point was that there was, he's distracted, he's not focused. of course azure's taking share, and amazon put up what many argue is a great print there >> there must be so much cloud stuff. >> see how google's cloud business performs when we get some sense of it they don't always give us that much transparency at alphabet, and i know you've been arci ina for more >> i would like to hear about thomas curryian, who he's doing in google cloud and like to see if there's anything in the other bets that is not costing them a lot of money this is normal, very strange like applied materials, gets an

upgrade. that is quintessential if you believe china will get back online soon you buy that i wish people would recognize you don't need to buy up big because the market was down 600 points it's entirely possible that friday was a bottom. >> the breadth is broad. travel stocks are up, united and some others. facebook talking will ibra and expanding the comments he made on the conference call last week >> this is the new approach and i think it's going to piss off a lot of people, too let's trying can different increasingly we're getting called to sensor different consent that makes people uncomfortable.

>> heading into an election season might not be too much of a surprise >> no, i think he should moderate his view. it may not piss a lot of people. it may make people feel differently about him. he is accentuating the negative. not embracing the positive, not even mr. in between. i'm taking a new approach, but that's the way he presents it. i think there are a lot of people who felt facebook was a bad actor. i think they're trying to be a little more, trying to move a little more to the middle, but the commentary that he's giving us is puzzling because it seems like he's not familiar with how people view him, whether you like him i think there's great size to him. but he's talking about look, i'm not going to be as nice as i was, and if i said that, during the days of david, where i was complete -- >> you weren't jimmy chill >> i wasn't jimmy chill. if i said i'd be a lot worse, because i've been such a nice guy, david, you would say to me, i didn't know you were a nice

guy. it's kind of off >> that's true, i probably would have said that >> are you jimmy chill >> worse, how could you be any worse? >> how could i be worse? the answer is, well, you'd have to have, i don't know, prominent psychiatrist look at it. >> watching the overall market, guys, i think we are observe veesly up and the s&p 0.75%. >> did they solve it, david? >> i don't think so. exxon and chevron as we pointed out, exxon in particular down. that stock down almost 13% for the year is exxonmobil >> those days were, david, 2017. >> no. >> yes it was. >> exxon wasn't. >> no, i checked it out. jimmy chill's checked it out for a brief moment, still in 2017 it was the largest company. >> really? no >> for six years no, no, david.

>> exxon, i'm talking 20 years ago. remember the first time exxon earned $10 billion in a quarter, never seen anything like that. now apple earns twice that >> look at what the largest companies in 2017. >> i will. >> but what matters is that -- stop it. the dividend is not protected. now that doesn't mean that the stock is saved it just means that people say you know what? i don't -- the dividend's not enough to keep me in there was a piece about al trtra whether the dividend is up bernie embraced the tobacco companies, there he and i are really -- wow. >> speaking of high yielding names, verizon gets cut over at credit suisse to neutral target remains around 65, largely domestic play, jim >> the spend is big. i think they have to spend to

dominate and that's what david, you've been following these for a long time. does verizon sense this is the moment they can pull away or is this just when i speak to the verizon people, they're very confidence >> they are very confident in their 5g strategy, because they look back at history in terms of the investment they made in the network for 4g and able to distinguish themselves from the marketplace and benefit as a result of their better service for some time and get to the point they are that's key to their strategy >> right >> there were a number of downgrades or moves from credit suisse, they upgraded charter. >> i saw that. >> and a $600 price target now downgraded viacom amongst the content provider is the only weak name >> do they sell coal >> i don't know. >> there is the dumbest stock i've owned in ages >> free cash flow estimates 500 and 600 million in the next

three years. >> huge. >> i know, they renew management strategy now apparently and see that they're going to have to invest in content and streaming, traditional networks, ramp up third-party sales so they take down their free cash flow estimates dramatically, including their discounted cash flow estimate in terms of price target from what had been 52 to 37 >> don't you think that they could maybe at some point be late in the trends >> yes >> bob bachus has a lot, the ceo, has a lot he has to say overcome >> there is a lot but some think it's getting late to your point >> jimmy chill says no sell. >> jimmy chill no sell l brands isn't reacting violently to "the times" piece over the weekend, legacy culture and the way they treat their

models obviously have been on a tear on the news of wexner uber on the horizon for 2021 they go to 50 from 45. you were a fan of the eats strategy >> i think if they make the move and i had matt maloney from grubhub, they report, new strategy about takeout if you got rid of one more player in uber eats, if they were to sell it, i think it would be very good that was a positive note i think that uber can go up a lot. the one business that is a loser, i want to talk about another one, another company that i thought was a winner, goldman sachs. there it might be more of the ceo, watch david solomon >> d.j.sol >> we should find something that takes our attention away his job is a hard job. so he spins and it was enjoyable

and my wife says do you think he'll come to the field club no, not like that, he's the ceo of goldman >> he doesn't spin that often and people criticize him in some ways but the young people at goldman sachs and largely, they like it, too >> he's amazing. >> is an aspect that appeals to his employee base >> he understands and so joyous. i don't want to mention in the audience, off the record, not why i do it. i had been critical. i am no longer he's more in sync with the times than i am. i said where can your t-shirt, i don't want to see a button down, go home, here is $500, go to logan's. >> did you wear a tie to the party? of course you did. >> yeah, i did, why. >> was anybody else wearing a tie? >> no. we have to move on but i never took my tie off the whole time >> check out jim's picture on twitter of solomon deejaying dow is up 189. bob pi san see >> happy monday.

a reversal from friday, stocks up, bond yields down no bounce in oil look at the global markets you see the differential the hang seng was open in the middle of last week. it's up. shanghai down 7% shanghai has been closed for more than a week, the huge differential with the markets open and close nikkei down 1% if you look here etfs, the trade to china stocks even when the underlying markets are closed, and you look here, you see the china etf here to the upside right now, the semiconductor index is up, the bank stocks kbe on the upside, industrials are bouncing a little bit and energy stocks are bouncing as well. if you look at china indexes, and etfs as well, since january 20th here, the hang seng down about 11%. also the shanghai down about 11%. hang seng down 9%. china large cap down 11% and the

mchi, broad china down 9.5%. the last two were trading while the market was closed in shanghai last week and they accurately reflected what was going on in shanghai even though the market was not open there. the etfs that trade here with the underlying stocks accurately reflect how the market trades, even if the underlying market is not open overall here. we're about half way through earnings season. what we want to do here is take a look at where we are in terms of the overall earnings situation. the numbers have been coming down a little to reflect the coronavirus issues since january 17th, a little before this coronavirus story hit, the s&p 500 earnings estimates had been lower by 0.4% these are the changes, not the actual numbers, and what you think would be down the most is down, materials, industrials, energy, have had their earnings estimates reduced the most in the last couple of weeks, that reflects concerns about global growth slowing down a little bit on coronavirus, hotels, restaurants, leisure, another group here also potentially

affected those are all the most affected. the markets acting rationally on this obviously we don't know the final answer what is hard to figure out is energy you heard david talk about the downgrade at goldman for exxon we're at the lowest level, this is the xle, the major energy etf since 2016 we're down about 12% for the year to date and not just exxonmobil all across the board, anything in oil services, like halliburton and schlumberger, anything in exploration production like apache down 12%, 13%, 14% you can't put it on exxon. we're seeing a collapse in the energy market overall, the one truly weak spot we're seeing in the s&p year-to-date back to you. >> thank you very much getting market pmis and isms in 15 minutes, we get to rick santelli hey, rick. >> reporter: good morning, carl. data is important but even data loses some of its lustre with

all the questions of coronavirus. if you look at a two-day of two-year, we've bounced back everything's up several basis points if we open the chart up to september, all the way back to 2017, that's the last time two-year note yields were closing at these levels. the chinese injecting liquidity after being closed since the 23rd, certainly has changed at least for the moment, many of the dynamics, look at a ten-year now hovering basically at levels we haven't seen since october, but do remember that if you look at the close friday, that was the lowest close since early september, we pop back above that, highly significant 153 this whole zone, 153 down to 145 is hugely technically significant. if we look overseas, one week of bund yields a subtle difference with treasuries. very little bounce to the ounce on the bunds if you open it up to october, could you clearly see how we've

deteriorated so quickly in bunds after getting uppest negative at minus 15, we added another minus 25 basis points awful quick and the dollar versus the chinese currency just soared overnight as you see back to levels we haven't seen since december. carl, david, jim, back to you. >> rick, thank you rick santelli with the bond report former world comceo bernie evers convicted of orchestrating a multibillion-dollar fraud died yesterday at the age of 78 the scandal resulted in world com's 2002 brups the largest chapter 11 case in u.s. history at the time evers served more than 13 years of a 25-year prison term before he was released this last september due to failing health. in his statement his family members expressed their sincere gratitude to the judge for ever

ebbers early release it was a blessing he got to spend the last few months with his family i remember mr. ebbers well, we played many of our interviews at times, the last one he did people may not remember kosk he was of course he was a towering figure not because he was 6'4" but in the world of telecom for almost a decade, at one time a gym teacher, another time a guy who was in the garment business, and then started ldds, a small entrepreneur down in mississippi, a bunch of friends who started this company, and always had this focus on costs but i had talked oftentimes i think about the mythology that was created by wall street, and the way that i they used bernie ebbers almost as a front man for an organization that delivered enormous amounts of fees to solomer brothers and citigroup,

their analysts there and bankers who orchestrated so many of the deals they did with this idea that ebbers was better than everybody else in terms of running this business, and allowed worldcom to become one of the largest telecommunications companies in the world. it was a myth. it was one that ebbers partook in, in part, and played the role of do i really think that he understood the intricacies of the accounting that went on at worldcom no i don't. so i do sometimes think of that oftentimes and remind our viewers of it. wall street will do that, potentially billions in fees as a result of all the deals that they were able to do with this idea that he was simply able to do it better >> you covered it all. david, at the time, people listened to you and seen at least what you could argue was going on, but what was shocking the justice department went after him with everything it had. >> yes and that punishment of 25 years

did seem, when you look at it now, with certainly perspective, it was so far beyond anything else that was received during that period of time. >> yes >> but our condolences to mr. ebbers' family on his passing. >> dow is dow is up 260 here ase roughly half up over what we lost on friday we made usaa insurance for members like martin.

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dow is up almost 285 points. pretty positive to start this morning as the chinese inject quite a bit of cash into their system almost all of the dow components are up exxon really the only laggard.

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jim, what is on "mad" tonight? >> fascinating story about health care, doctors on demand people have to recognize we need to change the health care system hill ferguson is doing everything he can to change this >> i hope you have a good weekend. >> i want to congratulate andy and tammy reid they are remarkable and deserve it more than anyone in the league >> such a great game we'll talk more about the ads later this morning dow is up 283. mes ay sism going toay montaw

♪ good monday morning. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen. david faber here at the new york stock exchange china gets back to work. markets open there down big but u.s. finds some reasons for optimism dow is up 1% trying to reclaim friday's losses. now ism is on the tape let's get to rick santelli in chicago. >> reporter: bsolutely, carl not only do we have ism a january read we also have december construction spending, down 0.2 big miss we were expecting a number up 0.5% let's get to the january read on ism manufacturing. expecting a number around 48.50. 50.9 50.9 that is the best number since july when it was 51.3. if we go through some of the other sub indices all very important. new orders jumped from 46.8 to 52 prices paid moved up from 51.7 to 53.3. of course, that underscores

everybody's preoccupation with prices and inflation, although they have been subdued this is over 50, coming from a level over 50, and finally a week where we're going to get employment reports, the ism employment figure moved up but not very sharply from 45.1 to 46.6 so, of course, it is still under 50 the magic line for expansion and contraction. the dollar index and rates and stocks of course rebounding. many traders wonder how much is the chinese stimulus and how long can it last sara, back to you. >> rick, thank you our road map for the hour starts with stocks rallying on the first trading day of the month following friday's massive sell-off. are today's gains here to stay amid multiple market fears plus controlling the coronavirus. we'll talk to the nation's chief allergy and infectious disease expert on the latest efforts in containing the coronavirus and angels in hell , a "new york times" investigation exploring the, quote, culture of

masogeny inside victoria's secret >> off the worst day since october, dow since august but all the major averages higher by more than a percent in today's trade. our guests are here to talk about the number we just got we were hoping for january to show signs of encouragement. this is some >> this is some. this is what we were expecting we have a lot of these variables going on the coronavirus is a big one and shouldn't be ignored this is what the economy is telling us that we have bottomed and going into 2020 and certainly the second half of the year consumer continues to keep us going and that with the trade war behind us supply chains remastered that manufacturing and industrial production are going as they should be, continuing the expansion. >> all right so then where is legitimate support and equities right now >> well, i think you'll probably see more volatility in markets

look, the medium decline is 10%. we have that every year. >> some years. >> some years worse obviously show you should expect volatility in markets when there is economic and policy uncertainty. but investors should look at the ism number and remember how bad it felt when in the summer months and into the fall when we were below 50 and this was the third big slowdown driven by policy concerns and this one likely will be the forward slowdown driven by an effect and we had euro debt crisis, fed raising rates, the trade war, and now we have the coronavirus. but this is an economy that -- >> which one, china or ours? >> the u.s. economy is one that continues to be resilient. we continue to have monetary support. i don't think this, the coronavirus, is what ends this cycle. i think that this cycle continues far into the future. the usual warning signs aren't flashing and we'll get through this and the markets will ultimately

press higher >> maybe it won't end the cycle, but certainly from a manufacturing perspective, i mean, it is good to see a 50 handle on ism but does it really mean anything when you have the world's manufacturing powerhouse, china, almost entirely shut off from the world? how can you put faith in this manufacturing rebound? >> yeah. that is a fair question. again, i think to what was said early this morning, this is scary. this is scary from the impact on human lives. this is scary from it's not something you can even forget or economically model we feel really strongly this is a point in time that is going to be contained to china and this is probably actually a buying opportunity. you saw a major sell-off today, the first day that the market was open since the big holiday it was probably about 30% to 50% less volume than we tend to see and that has to do with the limits that are in place so i probably think we'll continue to see that tomorrow. maybe throughout the week. but you're talking about an economy that, you know, this

will take it probably in 2020 from about 6% gdp growth to 5.5% when you think about that versus developed market piers i would still be buying emerging markets especially china x japan we have forecasts for this year, u.s. trading at or near all time highs and chinese and brazilian and emerging markets all time highs. i think we are at the point where the cycle is probably going to pivot from the u.s. to the emerging markets and we are certainly watching to see the effects this has on china, whether there is a fear factor that spreads from a contagion perspective, whether we do start to go through all of the inventories out there and it starts to affect manufacturing >> plus, china's economy now is 70% consumption versus in the 40s during sars. i wonder if the spread between manufacturing and services surveys might narrow a little bit. what do you think? >> it will but we need to pay attention to manufacturing

because that still captures the inflection points, irrespective of how -- the united states, we're 10% manufacturing but it still captures the inflection points on the economy. what we're dealing with and what investors have to ask themselves is are we dealing with a deceleration in economic activity which in the near term we need to be more defensive or are we dealing with the steps that lead us to the end of the economic cycle and if you look at your indicators on what is going to be the end of the cycle, whether it is really tight financial conditions caused by an inverted yield curve and a strong dollar and collapsing energy prices and high yield spreads, we don't have that yet. right? so investors should take a step back, recognize this is the fourth deceleration in economic activity we've come through the other three. today's ism shows us that. and watch your warning signs i don't think this is the end of the economic cycle, this is the end of the credit cycle. >> some argue that the curve's activity and high yields activity might not be terrible but it certainly is not

ratifying the all-time highs we're getting in stocks. >> we've been pushed hugely into risk assets around the world right? we have sort of -- we have no real rates in this country we, relative to the rest of the world we have better than there. so the flows that are coming into this country in terms of any fixed income market, i think that it's really hard to look at any fixed income indices right now and sort of separate how much is the global push into yield and how much is actually the esoteric and -- >> we're back to whether the curve is a classic tell again. >> look, ten days ago and i think i'm dating the coronavirus right, ten, 15 days ago we had a very nice backdrop of improving economic activity and accommodative monetary policy globally that should drive equities higher in a low interest rate, low inflation world. what you've seen more recently is concerns of a deceleration that have driven rates lower again and, you know, you're

still modestly -- still modestly steep on the curve you're not completely flat or inverted so that is still a signal of risk on. and we have no inflation so policy makers can respond. so the yield curve can modestly steepen further either from fed action -- >> you think they'd do that again, come back and rescue curve? >> if we continue to have problems the fed has a mandate of price stability. right now financial conditions are relatively easy. the dollar is not strengthening meaningfully inflation expectations aren't plummeting there is no need to lower rates right now. but if you continue to see growth expectations fall and the yield to flatten further then yeah >> bloomberg has a piece citing sources chinese officials hoping the u.s. will agree to flexibility on pledges in phase one. how much are they going to lean on that? >> that is interesting i was wondering when this would come up, this issue around the dynamics and sort of country politics from trade and that hangover coming into some of the

commentary that's been made around their aggressive reaction we'll see. i don't want to pontificate on that but i do think it is interesting that is starting to be a conversation. >> the commitments they've made just on energy alone are so significant and, yet, they obviously are not going to have the need it would seem >> sure. >> you have to wonder how they can adjust those >> that's problematic, right, and what you're seeing in oil right now and talking about opec going in we still have a $64 price target on oil we think just like you have the sort of one time variable affecting the chinese equities markets and the global markets that this is a one time hit for oil. but all of these things are going to continue to be part of the conversation my sense is that the u.s. will be accommodative there as well >> thank you, guys good to see you both >> thank you still to come, angels in hell . we'll take you through what the "new york times" calls the, quote, culture of masogeny

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go beyond the expected. to do the extraordinary. take your business beyond. let's turn to retail shares of l brands, well they have been up sharply over the last couple of weeks, about 28%. why? well, because there's a potential sale of the victoria's secret business. leslie wexner the long-time ceo

may be leaving you can see, though, overall the shares have fallen more than 70% since 2015 because of the weakness of that business. a key part of course of the strategy pursued there for so many years joining us to talk more about l brands is jim stewart, the author of "deep state, trump, the fbi, and the rule of law" but this morning the "new york times" also publishing his and a group of other reporters' article titled "a top l brands executive complained of harassment then she was locked out. it does take a closer look at the company's executive leadership and has some disturbingallegations, jim tell us. >> there is no question l brands is kind of a perfect storm of trouble. but this i think illustrates something i've seen so often in my reporting career. first there was the scandal. there's how l brands treated women who were models in the shows, executives in the company, andn after the issues come up, how does the

company handle the issues? that's what this column really focused on you had a high ranking woman executive there, which another interesting thing is that although 90% of the employees there are women the top ranks were all basically aging, white men. but she was a high ranking executive. she lodged a complaint with a long time director who had just stepped down with the understanding he would tell the board because she didn't feel comfortable going to hr. very, very common scenario 24 hours later, she learns from the facilities manager that her name is on a list to be locked out of the building. and then shegets a call from h saying, we're putting you on leave. as i say in the column this is a textbook case of how not to handle a sexual harassment complaint. we have a company here, l brands, that caters to women, the clients are overwhelmingly women, and was already under scrutiny because of les wexner's

ties to mr. epstein, who admitted to having sex with an underage girl. so it's kind of blowing my mind that wouldn't have been handled with the softest of kid gloves >> we've been looking atsome o the images of victoria's secret in the hayday, the angels. everyone knew it was stale, the million dollar brad perfect bodies and retouches was old school and that's why victoria's secret lost so much market share and so much business over the years. i think what was so surprising about your piece was the culture that went all the way to the top of les wexner who is considered one of the geniuses, longest serving ceo in the entire s&p 500 when it comes to retail and turning around a brand how high up did this go? >> well, it totally went to the top. it is very, very clear that the people who engaged in the most egregious conduct had a kind of, you know, free pass from wexner, himself. anyone who tried to complain they ran into wexner and that was a stone wall

les wexner built a huge, multi billion dollar company i don't want to take that away from him but you do have to question to what extent has he lost touch? many times working on the story i had to go on the l brands investor relations page on the web. frankly, it is embarrassing. a giant picture comes up of very scantily clad women all with exactly the same stereotypical body type who look, frankly, like they're about 14 years old. going to your point. >> that is on the ir page? >> on the investor relations page it's embarrassing to have my colleagues walking by. >> jim, what are you working on? >> yeah, what are you doing? i'm going to get in trouble here you know with internal monitoring but then some of my colleagues pointed me to some newer competitors there. you pull up the images it is a world difference. different body types, different ages it looks comfortable it doesn't look like some aging white male fantasy of what a woman should look like

so there is no question in my mind, whether it means replacing wexner or not is not for me to say but they need a drastic change of image. >> what happens now? wexner already under pressure as a result of the significant under performance and the pressures that victoria's secret in particular has been under from investors, although his board, it is not clear, was pressuring him at all. what do you think happens now with of course your column, this story i should say now being added to the mix >> i think all eyes will be on the board at this point. one of the things that really kind of stunned me was that the company made a statement on behalf of the independent directors, which was very proactive, very in my view very encouraging and saying, look we realize this was a bad situation. we're going to correct it and be a lot better in my decades of work as a

reporter, when the head of pr for the company, and i give them a lot of credit for doing this, but they step forward to make a statement like that on behalf of the independent directors without a word about wexner himself in there or the nonindependent directors, that, to me shall , is very significa. i would take them at their word. they are going to do something in there and i would expect a lot of change at the company exactly what that entails remains to be seen but the status quo is not going to continue i think that is why the stock is up so much >> are you referring to culture? or operations? people are still looking for them to find a model that is not as mall exposed and help provide some comps >> it is all rolled in together i think. it's both the execution of that, and ultimately who is leading this and in what corporate constellation. i think there is a case to be made that, again, having talked to a lot of young women, just

women, period, there is a place for the retail store in this particular segment it is not easy to order this blindly over the internet although, again, people are finding with shoes and things you can send things back maybe that model is going to change >> you want to try on your bra >> exactly thank you. >> there you go. >> always good to have a woman up here with us. thank you, sara. >> we're going to talk about bras and underwear happy to weigh in. >> jim, thanks for bringing the story as well. >> thank you >> jim stewart as we go to break take a look at the top stock leading the dow rally. dow is up 337. nike is way on top today up 4.25%. got some double action by south side raised to a buy from neutral at ubs added to a focus list at jpmorgan helping propel the stock. most stocks are higher except exxon, verizon, and chevron. you can always watch us live on the go on the cnbc app down load it today "squawk on the street" will be right back our retirement plan with voya gives us confidence.

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flights from china we'll go to jfk international in queens, new york what can you tell us about the activity >> reporter: it is not just that it's the only 11 airports accepting flights from china there are only 11 airports accepting passengers who have been to china in the last 14 days the edict is in now. the u.s. has said it will no longer issue visas to foreigners who have been in china in the last 14 days and what is supposed to happen is that the airlines are supposed to be asking the passengers before they even board the planes about their recent travels and where have they been? here at jfk i found out that is being inconsistently applied for instance i talked to passengers coming in from mumbai, india. they had been asked before they boarded the plane, have you been to china others like from nairobi or senegal had not been asked until they landed here and were going through customs. listen to what the passengers told me about the screening process. what did they ask you about your

travels? >> they asked me if i was in wuhan in the last 14 days. >> reporter: and was there any followup screening >> not really. no they just asked me >> it was pretty lax lax in the d.r. and then when we got here we were just asked a question i don't know if that was because we're u.s. citizens or something like that. >> they asked if she just came from brazil and if she came from other travels in china >> reporter: but now it appears that it is going to be the airlines that are responsible for making sure that passengers have not been to china leaving through their passports or looking at their itineraries and perhaps as a test of honesty of these passengers will they really admit to having been in china if they're coming through, say, dublin or from paris that they had been to china if it means quarantining yourselves and being sent to a different airport? another item of note here.

we have domestic carriers, delta, united, american airlines that are canceling their service to and from china. delta says it won't resume until the end of april of course the united states is one of dozens of countries that have issued travel restrictions now for passengers from china. it appears that this is going to have a real impact, guys, on global travel. >> certainly travel restrictions are at the heart of all of this. our contessa brewer in queens, thanks let's get to a sector suit back at hq today hey, dom >> so, carl, we have issues with stocks now moving to the upside. they are starting the week off and the month in positive territory. most sectors in the green you can see here led by communication services also consumer discretionary with the dow again over 300 points to the upside among the big names now moving the discretionary sector higher you have alta beauty moving higher after an upgrade at goldman sachs. we also have macy's, las vegas sands, and ford as well. then take a look at shares of

nike the best performer in the s&p this morning following a u bs upgrade. jpmorgan analysts also added that company to its focus list saying it sees the recent pullback in nike as a multi-year buying opportunity nike up 4.5% now, david, back downtown to you guys at the new york stock exchange >> thank you, dom. dom chu. after the break markets as you see are rallying, this in the first trading day of the month. but how worried should wall street be about the coronavirus? and of course the overall fears of the slowdown in the global economy? we'll tell you next when "squawk on the street" comes back.

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what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere. tlae welcome back everybody. i'm sue herera with your cnbc news update at this hour at a news conference in uzbekistan secretary of state mike pompeo said a handful of

flights will be heading to china to bring americans back from central china which is at the heart of the coronavirus outbreak >> the exact timing of those we're still coordinating with the chinese government we anticipate in the next handful of days and we'll return those american citizens and may well bring some citizens back from other countries as well >> police searched a bail and probation suspect in south london last night after a man who attacked people in the street was shot to death earlier in the day officials identifying the attacker as a 20-year-old man who was recently released from prison after serving time for terrorism related offenses and the former chief of worldcom convicted in one of the largest corporate accounting scandals in u.s. history died just over a month after his release from prison. bernard ebbers was convicted in new york in 2005 on securities fraud and received a 25-year sentence bernie ebbers was 78 years old you are up to date for this

hour sara, back downtown to you >> all right, sue. thanks stocks regaining some of the losses from friday's massive sell-off up more than 1%, healthy 1.6% for the nasdaq today we do still have looming coronavirus concerns and of course fears of an economic slowdown so how should investors be looking to play the markets right now? mike santoli here to break it down first we'll start with you, mike >> a pretty good relief trade is what you would characterize it as i think it is because the markets got pretty hunkered down in a risk averse mode over the past two weeks really across the board stocks, bonds, whatever you wanted to look at. we went back into that kind of deflation trade over the last week, flat yield curve, credit market softened up they've been a very strong aspect in this rally they did have credit spreads widen out though today they are recovering a little bit and obviously just more baking in the potential for greater volatility whether the political reasons or global growth the question is, is a 3.5%

decline in the s&p 500 after a 10% ramp in a few months enough to kind of relieve some of those sentiment pressures, valuation excesses, and leave us in a position like in the first quarter of last year when we had about a 3% to 4% reset and then went on from there i'm not clear we're there because obviously this is all about not what last month was in the ism or anything but what growth looks like for the rest of the first quarter >> and for that we've got steve liesman here as well for more on where we stand in the economy with those big uncertainties >> a lot going on even before the coronavirus which dominates the headlines now. it is just one of the major challenges the u.s. economy faces that could depress growth the first half of the year and which markets think could bring the fed back into play the coronavirus has brought big downgrades to china with less but still measurable effects on the u.s. economy you have boeing as well which could take a half point off gdp this quarter and maybe even next before the third quarter bounceback the tariffs are still there. the u.s. and the world economy

face all of that even though there's been some reduction in those. and then of course the u.s. manufacturing global slowdowns and global economic weakness weak before corona though the ism suggests some signs of stablization looking at corona several forecasters have said it could cut china's gdp by up to a half point and could shave several tents tenths of a point off the u.s. some forecasters think the fed could cut as well. ubs writes over the weekend we continue to see substantive weakening in the economy and believe the softness will ultimately drive the fomc to materially reassess the outlook and to cut rates three times i think that is aggressive they see growth as just 0.6% this quarter and next. sara, the ism today is a really good example of the challenges ahead. it was before corona, after trade, and may or may not include the idea or the different emotions relative to what's happening with boeing

we just don't know there's a lot of stuff to discount you have jobs this week, trade this week. all kinds of data coming in. >> sort of brings us back to a familiar question, which is, if manufacturing wobbles can the u.s. consumer stay strong? because when it comes to china and these coronavirus fears and some of the outstanding tariffs it really does hit that part of the economy particularly hard. >> i normally would have said yes but we had some weakening of the consumer as the quarter went by in the fourth quarter so that is an area of risk we have to look out for the fed is seen coming in in september right now, 70% probability of a rate cut. you even have a 50% probability of a rate cut in december. this 40-point drop we've had in the ten-year, it ranks historically, if you look at it as a percentage, fifth largest month-to-month change going back to 1953. you don't get, of course, because rates were so low, the 40 basis points measures as a lot. >> sure. but that is on the virus, yes? >> it is mostly on the virus you had a little bit of weakening before this virus came through but you went down.

you were up near what, 190 and change we start talking about 2%, remember, saying oh, maybe it is going to go up 2, 2 1/4 next year guess what back down to 155 people made money on the ten-year or at least helped hedge against the losses >> a clorox market or caterpillar? >> it could be a clorox market until the caterpillar market comes back that's been the pattern is that you kind of have a hand-off back and forth. i don't know if you can make that case although i will tell you, the big five of the nasdaq are acting more like clorox than caterpillar. they are not necessarily every day products in the way we used to think of them but that's the way the market is now valuing them as if they won't go away. these cash flows are starting. they are much more expensive than clorox now. look, i think just to square with what steve is saying the market rushes to a spot where it says, you know what? last year we got three rate cuts without really having to go through that much pain right? you kind of stayed around 2% gdp. you had the market have a gut

check. it often says maybe we can get another one of those who knows if we have to actually have another recession scare before the market starts pricing in something >> powell's pain threshold >> i would think it is much less to cut than it is to hike. when he talked about all the things he talked about in the last press conference, it certainly seemed like if there were two rooms down the hall from each other, one was the cut room and one was the hike room, he was sitting in the cut room he'd have to get up and walk all the way down the hall to get to the hike room. >> we'll see if he cuts this year guys, thanks steve liesman, mike santelli >> did want to pinpoint an antitrust story of significance for our viewers this morning the last hour or so the ftc filed to sue, to block edgewell, a company of course you may know, they own the schick brand of razors from an acquisition of harry's, a fairly active advertiser digitally and it is of course a digital competitor in the market for razors here is a quote from the ftc

competition bureau deputy director harry's is a uniquely disruptive competitor in the wet shave market and it has forced rivals to offer lower prices and more options to consumers across the country. the harry's and flamingo brands represent a significant and growing competitive threat to the two firms that have dominated the wet shaving market for decades. that is edgewell and proctor & gamble we're talking about they've had to short circuit competition by buying -- the effort to short circuit the competition by buying up its rival -- >> they both operated their respective brands of men's razors and venus brands for women as a comfortable duopoly characterized biannual price increases that were not driven by changes in costs or demand until the likes of harry's and others as well dollar shave which was bought by unilever came along

interesting. only $1.37 million deal. dollar wise not that large private company. what does it say about the ability of director consumer companies to sell themselves to these bigger players is a larger question >> the answer? look at edgewell's stock price right now. it is rallying hard up almost 8% the stock had been absolutely slammed on this deal in part because harry's has slowed down a lot. it was considered one of the faster growing upstarts disrupting the whole shaving business but edgewell came in late on that look at proctor & gamble's gillette business. it's been growing the last three quarters >> and many have moved to this direct to consumer offering. >> they are competing, lowered prices, came out with innovation they have the heated razor for 200 bucks people are spending money on for edgewell shareholders it is actually a huge relief and the kind of window to buy these upstarts had passed a long time ago and now the big brands are coming back. >> interesting choice by the ftc to sue to block. after the break, how to contain the coronavirus.

the director of the national institute of allergy and infectious diseases will join us as the death toll and the total number of confirmed cases continues to rise. dow is up 350 almost another 200 points a wre cko id'spen.e'

could this corner of the commodities market be flashing a major economic warning to investors? find out on tradingnation.cnbc.com

the coronavirus outbreak sparking concerns about its impact on the global economy the number of confirmed cases now more than double the number afflicted worldwide by sars which was nearly two decades ago. on friday the trump administration declaring the coronavirus a public health emergency in the u.s. and launching a task force to monitor daily developments joining us now a key member of that task force and director of the national institute of allergy and infectious diseases

dr. anthony fauci. welcome. thanks for joining us. >> good to be with you >> tell us first any revelations you have learned over the past weekend as to this spread of this virus >> well, i think as you said correctly, it's escalating, the number of cases that increase from one day to another, is clearly going up in a very steep slope. it is well now over 17,000 cases, about 365 deaths. some things people should put into perspective, although the number of cases right now is more than twice what we saw with sars back in 2002, the death rate is clearly lower, about 2%. and likely will get even lower as we recognize more infected individuals. sars, back in 2002, the death rate was about 9.6% between 9% and 10%. so it is still an evolving

situation. we don't know exactly where it will go or what the pattern is but the number of cases are accelerating >> the cases in the united states, dr. fauci, what i keep hearing and reading and what we all see is how transmissible it is, how contagious this disease is if people actually traveled from wuhan to the united states, why haven't we seen more cases in the u.s., those who are on the airplanes with these people for instance or in taxies or ubers >> right well, i think we have to be careful because it very well may be that the kind of casual contact that you would get on a plane or on a taxi or an uber as you said certainly might be able to transmit it but it isn't that efficient that just being near somebody, very likely you would have to be in close contact for a period of time the question that you ask, which is critical, what about the people who come to the united

states you know, they've now been 11 cases in the united states two of whom were infected while they were in the united states and nine of which actually came over with travel related cases the reason we haven't seen spread, that is persistent type of sustained transmission, is because of good public health measures no, sir individua those individuals appropriately and fortunately were identified, isolated, and contacts traced, which is exactly what you like to see done. that is the reason why thus far and hopefully it stays this way, we're not seeing a lot of cases in the united states as the entry into the united states of potentially infected people is diminished because of the travel restrictions on both sides, on getting out of china and getting into the united states, i think you're going to see a dampening down of that

that is the reason why this was done, to protect americans from travel related cases >> dr. fauci, what about a continent like africa where the health care system is certainly not nearly as evolved at all as ours is? is there a real danger there in particular because there are so many chinese nationals who actually work in africa as well? >> you know, i think you make a very good point. whenever you have a health care system that is not capable or at least not efficiently and effectively to do the things that i just mentioned, identification, isolation, and contact tracing, the danger of their being spread in such an environment is much, much greater than if you're in a society that has a health system that allows you to do that identification and isolation >> you know what we've heard, dr. fauci, besides those -- the

death rate -- what about those people that have contracted the virus? are they testing negatively for them the ones who have not died, are they recovering? are they going home? we haven't really heard about all the people who still have it >> well, you're asking two separate questions let mae see if i can answer them separately if you look in china of all of the people that have been brought to the attention of the health care system, about 25% of them have very serious disease and requiring relatively intensive or really intensive care the vast majority of them are individuals who are infected and whose symptoms are relatively mild that don't require the kind y a ntensive care. lot more people who were

infected in china who have not been really counted in the number of infected individuals because they were either asymptomatic or their symptoms were so light that they didn't come to the attention of health authorities. so although there are over 17,000 reported cases in china, the number is probably much larger >> dr. fauci, thank you for joining us >> good to be with you >> with updates and answers from the nih. let's send it over to john fort to get a look at "squawk alley. >> we have a co-founder of p paypal and ceo going to talk digital payments, innovati and more coming up on "squawk alley. high protein low sugar so good! high protein low sugar mmmm, birthday cake!

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take your business beyond. for the first time in 50 years the kansas city chiefs are super bowl champions it's also the first title for 61-year-old head coach andy reid and for quarterback patrick mahomes. the victory could make him the nfl's highest paid player on his next contract. nobody better to talk about it than nfl super agent drew rosenhaus who represents tyreek

hill and san francisco linebacker kwon alexander. that hill catch with seven minutes left, third and 15, you're down by ten, and i think the name of the play is being talked about today because that's when they really caught fire >> it was the play of the game, definitely the turning point when i saw tyreek immediately after the game i was down on the field with his little sister and his son and said you won the game you made the play of the game. i believe that san francisco had all the momentum had they not made that big play, i believe the 49ers would have won that football game >> it's hard to imagine otherwise. do you see two new dynasties here, drew, or is the durability of what belichick has built and some other dynasties as well still intact >> you know, it is remarkable what tom brady and bill belichick, gronkowski and the

patriots did all these years, but it's hard not to feel that andy reid and pat mahomes can emulate that pat mahomes will be very special and he has the ability to be one of the all-time great quarterbacks with him and the chiefs and the amazing talent they have with tyreek hill and travis kelce, all the good players that they have coming back, they're deservedly the favorites to win it all again next year and probably decisive favorites. >> it was striking to hear jimmy johnson to say mahomes may be the best he's ever seen and that's with brady and elway. how much are we perhaps overbuilding mahomes even in the early stage of his career? >> yeah, well, after three years he's been remarkable you can make the argument he's been as impressive as everyone from a talent standpoint in the first three years of his career.

obviously tom brady got off to a fast start as well winning championships. mahomes has the makings of a truly legendary quarterback. let's not count out the 49ers. they have a really, really good football team, a tremendous young head coach in kyle shanahan i'm certain they're going to be a candidate to come back they have some players on that football team that are really special. nick bosa, for a young player, is really a franchise player at defensive end, and this is a team that looks like they're going to be a contender and we can see a repeat next year in tampa. >> as a new york jets fan, i don't even need to say long suffering there. i look at the afc and obviously talk about mahomes, but lamar jackson, deshaun watson, just the amount of talent in the avifteafc, man, that's going to be a tough conference for years to come

>> definitely. and while the nfc has oldies but goodies in drew brees and aaron rodgers and guys like that, maybe drew brees will hang it up, the afc has the young stars at quarterback mahomes, deshaun watson and of course lamar jackson just outstanding talents, and they will be competing in the playoffs for a long time to come and let's not count out how impressive the titans were and they're a young football team as well the nfl is in a great place, guys they have the cba negotiations maybe winding down and the tv contract coming up a true superstar winning the super bowl and the mvp in mahomes. roger goodell and the nfl have to be feeling really good right now, pretty, pretty good as larry david would say >> drew, about that tv contract

coming up, a lot of big tech was represented last night we saw jeff bezos and, of course, his tweet. apple and google was a big advertiser, so was facebook. how do you think about the big tech firms vying for that contract do you have any concerns about that >> no, i'm not concerned at all. i think it's great for fans. let's face it, the nfl right now is at everyone's fingertips. you can literally pick up the phone and watch any game on your phone regardless it's tremendous and it's only going to get easier and it's a brilliant platform streaming games, all access all the time i mean, at one time you had to have a sunday ticket to watch the games. the nfl is just making it so easy if you're an nfl fan to watch a game, and i think they've done a magnificent job for the entire world to have access to the football games, and that's going to be fantastic

when it comes to the tv deal and let's face it, the nfl dominated the top 50 highest rated shows. if you're nbc and cbs and espn, you'd better do whatever it takes, and fox, of course, to keep the nfl in your lineup. otherwise your network is going to fall out of, you know, being a major network. i mean, right now this is a historical time for network tv >> it really is. the viewership trends are fascinating to watch it will be a long seven months until the next snap but we look forward to next season drew, we'll talk to you soon >> sounds great, guys. take care. >> drew rosenhaus. >> given your passion for football, i'm sure the closing bell will feature a great deal as well on the super bowl. what else, though? >> did i like my nonfootball football question? >> that was an important question >> today we'll get the next trillion dollar company reporting earnings which is alphabet after the bell. we'll also advertising with gary

v. he has 7.6 million instagram followers. a perfect guest on that. and then today's closer is ceo terry duffy. we'll talk renewed volatility and what he's seeing for the election iowa caucus day, of course, and how volatility and the market players are positioning ahead of that 3:00 p.m we'll see you then when we come back why mark zuckerberg is saying facebook's new approach is going to, quote, piss a lot of people off when we started our business we were paying an arm and a leg for postage. i remember setting up shipstation. one or two clicks and everything was up and running. i was printing out labels and saving money. shipstation saves us so much time. it makes it really easy and seamless. pick an order, print everything you need, slap the label onto the box, and it's ready to go. our costs for shipping were cut in half. just like that. shipstation. the #1 choice of online sellers.

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