>> good to have you back welcome. >> thank you. >> remembered how do it pretty well. >> well, the viewers can decide. >> muscle memory. >> thanks for watching "power lunch," everyone. >> "closing bell" stats right now. welcome. rch, to "closing bell. i'm sara eisen here at the nike post on the new york stock exchange leading the dow and analysts love a pair of bullish notes rest of the market, 600 point sell offfriday 59 minutes left of trading. good afternoon to you. a look what's driving action china central bank, relieving pressure other than its economy as the united states confirms the 11th case of the coronavirus. a surprise rebound in u.s. factory activity after five straight months of contraction and tech is leading alphabet up 3% ahead of earnings in one hour from now that we'll cover for you and a final hour of trade covered for you with charlie, here the first full half hour of

the show from aerial investments. rebound after late last night. hard to predict i guess what's going to happen given the trigger, this coronavirus. that said what about a pullback and have we seen enough to be comfortable about valuations >> a dangerous unknown, unknown stuff. wonderful in our business talking about known, unknowns, making predictions about things that you know are coming this caught us off guard look at history and what's happened in the past it is bad when you have full valuations to get this kind of black swan coming out of nowhere and makes us go back to our medical books and learn about death rates and mortality rates and that's frankly not fun. >> donald rumsfeld with us as well. >> as if, said it first. >> focus on the big stories watching today including the coronavirus, of course we have the latest on the outbreak contessa brier at jfk airport covering the impact on airlines

and "be brave in the scare" tra -- bob ba san bob pisani is with us. and the coronavirus. apple temporarily closed all stores and offices in china and industries from airlines to casinos to cruise ships all impacted earlier on "squawk on the street," put the outbreak into perspective. listen. >> 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. it's about 2% and likely will get even lower as we recognize more infected individuals. sars back in 2002, the death rate was about 9. % between 9% and 10%. >> let's bring in meg tirrell now with more on theest to contain the outbreak

meg. >> reporter: sara, learning about the pharmaceutical response evolving quickly. latest news on gilead, experimental anti-virus. report in new england journal of medicine showed the patient reserved the experiment's drug seven day in the hospital and next day clinical condition improved analysts prove too little diet to prove the drug works. it's working with chinese authorities to rahn clinical trial there. >> we hope the data improves thank you. travellers feeling the impact from the outbreak with major airlines canceling china i tinaries and only 11 u.s. airlines accepting flights from china. con ten s contessa has the story. >> reporter: fewer than a dozen u.s. airports xepi iaccepting f from china or passengers coming

in at this point the united states is no longer allowing foreigner whose have been to china within the last four weeks and closely screens, quarantining u.s. and permanent rents who have been there. it's up to the airlines to decide who should get on this flight we learned at jfk, the questions are not always asked, rules inconsistently applied three u.s. airlines, american, delta an delta suspended services delta until end of april. >> contessa, thanks for that charlie, where do you stand on the airlines stocks? they've fallen a lot is that fair >> especially yuunited. >> biggest exposure to asia? >> we don't like it. never invested because it's highly capital invested. airlines cut full, cut fares to get them full and something goes

wrong like higher oil prices or a scare like this and profits drop off this is an industry we've never liked. warren buffett said best thing happened for investors, orville write shot off the sky first day. this is a very tough business. this kind of thing and why it's a tough business. >> bring in bob pisani on the floor of the exchange with a look at the overall market and individual movers. >> and manufactures numbers for the u.s. helped early on look at the big movers earnings are key microsoft great numbers, still drafting off those an same with ibm. nike got an upgrade over ubs market is defensive. the sector leader year to date, ult utilities outperforming everything and treasury bonds outperforming. the two big movers get something that's not defensive moving pay attention to new lows. exxon mobile, ten-year low,

downgrade from goldman sans, and shipping companies, robinson, matteson, u.p.s., despiters down 8%, 10% 12% so far on the year bab to you. >> bob, thanks for that. coronavirus fears of course weighed on oil a new report demand at china fallen by 20%, or 3 million barrels a day due to the virus lockdown and bring in head of research at goldman sachs. thanks for joining us. >> good afternoon. >> gauge for us how big this fallen crude, 18% year to date overdone in your mind? >> look what's makes the coronavirus very different than we've seen in the past magnitude of the quarantine. hopes it contain it near term, in terms of spreading, contagion, and significant impact on economic activity very near term. what's happening with china, quarantine is not impacting transportation demand, demand for copper, iron ore, shutting

down the mills a broad hit. put it in perspective. look what the market's trying to price in in terms of shape of the forward curve. estimating pricing in 700,000 barrel per day over the course of the year. 2.8, not far off that number you just cited in terms of looking can they keep it on three months? i doubt it say shut it down to the point of impact and demand by 3 million barrels per day over the next week, people that work for goldman tell me kids dough go back to school until march 2nd could last the rest of the month. if it did, market's overshot i don't want to catch a falling knife it could extend. really that's trying to contain the problem. >> obviously china is a key buyer for so many different oil producers. saudi arabia in particular, special opec meetings. what can opec do here? >> that's the problem. not much right now you're loading ships for delivery in april.

a contained problem and isolated to the near term by the time they hit cutback supplies another 60 days by that point in time a chance it may be done and over with. >> to your point, hard to catch catch a falling knife. the overshoot in decline, down 9% today, copper others down more oil 18%. should it be down more in line with copper? >> no. impact on transportation is typically twice on what it is on economic activity. we're using that relationship with sars. not only shutting down plants, you're shutting down their activity to travel between plants and your day-to-day transportation not just hitting airlines but rail, hitting trucking, cars all of it. that's why you'd expect oil to be down more. >> and on your point on opec i remember a time where just news opec was holding a special meeting, talking about cuts, would move the price of oil

higher i mean what do you think they'll actually do even if they aren't habl to d able to do -- >> you go back into a backwardation. not ignoring it. just the markets is recognizing it's too, too, you know, time spread is just too tight but i do think the market's pricing in a 50/50 of a chance do they react in the near term is the question. >> buying opportunity for majors, charlie? >> yes we look for factor with a short-term impact no long-term impact i think we'll get through this and china will consume more oil next year than it did last year. so this is going to have short-term problems. price of oil tends to move with short-term factor. longer term i would say exxon at a six-year low is a real opportunity. part of the trade deal, that china was supposed to buy a lot more energy products from the united states. is that going to be possible right now?

>> again, probably going to be over with by march i'm not saying i have insight there but again in the size of the quarantine means they'll contain this quickly if you use historical guides get out there, be able to go out and buy again. thinking opec cutting production, the question how much inventory build do you get in the next 60 days you want to take down? >> where do you stand on gold? >> positive. not a trade. strategic allocation target of 16 h00 don't see it as a trade, geopolitical risk that worked great against iran a hedge ghent dedollarization. central banks buying gold moving away from u.s. dollars and third reason, a surplus developing because of a sharp drop in cap x. >> at 1600 where you're at now? >> 1581. >> so your point is, advice to be a smart part of everyone's

portfolio rather than the fact -- >> yes personally haven't talked about the biggest reason, trillion dollar deficits we have negative interest rates, trillion dollar deficits, a lot of factors for hundreds of years caused inflation haven't recently but we think this time is not going to be different. >> okay. great to see you. >> great thanks for having me. and tonight don't miss it. special report on the coronavirus with the latest on the outbreak and its global impact tonight 7:00 p.m. eastern time receipt here on cnbc. still coming up on "closing bell," another new high gear for tesla. above $700 first time the take on that super-charge move higher. up next a few hours away from results of the iowa caucuses democratic candidates face their first major test of 2020 we'll take you out to iowa for the latest on how the results could impact your money. heading to break, a check on the data tracker

ism manufacturing, reading 50.9, expansionary construction spending fell .2% in december missing estimates of a rise of .5 tahrir sqreua stay with us "closing bell" will be right back.

just about 45 minutes left to go in today's session dow up 181 individual market movers for you. shares of roku higher reaching a deal with fox. the agreement in time to watch the super bowl on the roku platform that stock a nice bounce up almost 6%. maxair technologies moving on news that intelstat has chosen it to manufacture its next generation communications satellite. the move is expected to grow their earnings and cash flow stock up 3%. we are hours away from the results of the iowa caucuses as democratic presidential candidates face their first big test of 2020 kayla is in iowa with us >> reporter: tonight is all about turnout and momentum has the potential to reshuffle the leaderboard of a race in any

given county here in iowa could favor joe biden, pete buttigieg or bernie sanders. the turnout is key sitting senators are back in washington and sanders and supporters show up, we'll win. if you don't, we'll lose across the political spectrum, the number one policy issue is health care. the chair of the board at manufacturer vermire is trying to figure out which company helps all of the employees she works with. >> a lot of suppliers may not have the same benefits. >> reporter: here the chemical research lab we're in ceo chris nelson plans to caucus for joe biden but says even for a big business like this, that health care is getting too expensive to provide the type of comprehensive coverage it used to. >> to be able to manage a single digit increase we've had to

greatly start to reduce benefits skinnier plans, costs going up and still we have to charge more. >> reporter: and i remind you. these are big businesses small business owners we spoke with said they don't even really provide this benefit to the majority of their employees anymore because the cost is simply too high. it's not hard to see why this is the number one issue for voters and why in a state like this where costs are up as much as 20% every year they're drawn to candidates like warren and sanders. >> kayla, the unemployment rate in iowa is remarkably low. lower than the average, lower than 3%. wonder how the economy factors in to what last time around was pretty clear a trump state >> reporter: it was. to be clear, sara, president trump still has a couple of points on most of the democratic candidates in this state for that very reason unemployment rate is 2.6%. you hear businesses talk about

needing immigration reform to get more people to the state to fill the jobs. also we hear about underemployment, people working more hours, working too many jobs to check all the boxes. >> kayla, how important is iowa? is it a case of this lead gives enough momentum to really change the game or does it have to come alongside a new hampshire victory and others as well >> reporter: well, from the delegate standpoint, it's somewhat negligible. 56 delegates from iowa. so it's a small fraction of the delegate prize, but what it does is give momentum to a front-runner in this race at a critical moment going into these other primaries with a race still this wide, it will certainly propel one if not two, candidates to really be able to fund raise and get a lot more

grass root support going into the other critical races. >> kayla tausche thank you. who's wall street lining up behind in terms of democratic candidates sticking with trump? >> so i would say that i have visibility on this because our firm has very prominent democrats and they are coming behind -- >> you'll see -- jen rogers. >> wasn't going to name. thanks but he is already expressing support for bloomberg. it's fair to say that the stories about the democratic establishment being nervous about sanders are true, and personally, the betting lines say that sanders has close to a 35%, 38% chance winning the presidency i don't think the market is baking that in i would say the market is saying, he won't get elected or if he does won't carry the senate i think chances of that are higher than people think a. great segue to that. the market dashboard looking at the rise of bernie sanders and what it means for the marketants

exact lly right regionally focused market-wide haven't seen a pricing in of this prospect. certain themes you can see evidence that the prospect of a more progressive democratic nominee is getting into the market strategas has high tax exposures. rick of increase in corporate tax rates would hit these companies hardest. as this number goes down it means the possibility of a bernie sanders or elizabeth warren nomination goes up. that's an inverted scale what it shows is this high-tax basket tracking lower recently as those two have seemed like they're somewhat more likely so obviously, we got a corporate tax cut. the theory, these are the big beneficiaries, maybe it could be reversed look within health care. recently a little more nervousness among the health care providers that's the ihf

basically the big insurers out there who had a very good run in late 2019, after elizabeth warren peaked in polls after sanders has had a closed in on biden it has actually underperformed here recently obviously, you see the nodes of concern. also we've talked before, there's been a hedge of hedging a spike of volatility today meaning results from today or super tuesday in a month all that stuff is getting into the market, but in general fair to say that the overall s&p 500 is not necessarily moving just yet on these numbers. >> mike, thank you very much and charlie, to weigh in on your correspondent what mike just said what do you think would be the trigger to see the s&p 500 to play catch-up to where the betting market odds are? an iowa win or actually winning the nomination in many months' time >> the latter. i if sanders looks like he will

be the nominee and republicans look like they're having trouble holding on to the senate and only up by three people say four, but that assume as swing vote with the vice president. if they lose that, i see three or four states we're nervous about holding. so if the market sees that combination possibly occurring, then i think we're talking about a lot more than 5% profit a. school of thought that says bernie gets the nomination and trump wins the election will have an easier time winning the election which would be market friendly. >> that's overconfidence nobody obviously thought trump could win. nobody thought ronald reagan could win. >> who knows. >> exactly that's point. counting you down to alphabet's earnings after the bell the last of the names to report. preview what to watch when the number hits. and terry duffy discusses a new volatility in the market with fears of the coronavirus.

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welcome back to "closing bell." time for word on the street. a pair of bullish notes on nike. jpmorgan adding to focus analysts pick as a growth pick seeing the recent pullback as multibuying opportunity and ubs seeing 41% upside.

paying much higher for nike, it believes, pulled back because of coronavirus fears but already trading near a high multiple higher than in years. >> deserved to be on 37 times forward rather than currently what it is pretty extreme >> very bullish. innovation, director consumer play and all factors working for nike including china, a wild card sees double digit growth every quarter. >> still, 37 times, they make shoes ultimately. and raising tesla target to street high $808 a share based on continue revenue growth and strong bemanned. 2024 expected share for tesla, $7,000 again buy side firm, long and bullish. count it as a price target like the street has tesla stock heading fresh all-time highs today 16.5% gains. unbelievable, this run

up now to $759 tomorrow, by the way, longtime tesla on "squawk box" for an exclusive interview 7:00 a.m. ee eastern time charlie, tessa, when you can out, tesla, about 400 and said overpriced what do i know clearly valuation. the question will valuation ever matter on this name? a lot of shorts getting squeezed but at some point valuation has to matter, but i can't tell you when. >> what i find incredible is after the run its had, a new price target from, you know, a relatively small, not huge, broker comes out and it has another massive jump off the back of that i don't see any other reason today by it's jumped it shows unbelievable momentum and any small positive lead leads to a jump. >> it is momentum. still a big short position they're getting squeezed, margin calls. regulatory issues seem to have faded away

i will say build rates better than i thought they'd be. so the fundamentals are better electric cars fundamentally better. but it just to me is not worth the price that the company is paying for them. >> do you like the stocks? >> not at these levels the supplier just bought delphi. stock got hit hard for it. on a combined basis, warner and delphi, big investment in power trains and electric as well. 11 times earnings traded in. >> there you go. still to come, picking a name down over 20% over the past year that call straight ahead. and later speak to the man behind the viral mr. peanut super bowl ad nap would be little nut right? baby nut the ceo join us us in a bit. as we head to break, a check on bonds. treasury yields making a small move higher. ten year yielding around 1.53% along with the overall recovery

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we're back just over 28 minutes 4re679 in the session. up on the dow. key things driving action. china's central banks acts to improve liquidity and release pressure as the united states meantime confirms the 11th case of the coronavirus a surprise rebound in us factory activity up to five straight months in tracks. and tech leading alphabet up 3% ahead of earnings due out in about 30 minutes' time. time for a news update sue herera has it for us. >> hello everybody what's happening at this hour. two people are dead and a third person wounded in a shooting as a residence hall at texas a&m university in the city of commerce the surviving victim was taken to a hospital in unknown condition. all classes were canceled for the rest of the day, and the campus in commerce is some 200 miles north of the main campus in college station.

a key accuser in the sexual assault trial of harvey weinstein testifying that she stayed in touch with the once powerful movie mogul after he allegedly raped her to protect her acting career. this as the defense sought to n manipulator. refugees and migrants clashed with police on a greek island during a protest over severe overcrowding at the local camp and delay in processing, but no arrests. and disney says it will distribute a four-year old live capture of the broadway musical "hamilton" in the u.s. and canada october 15th of 2021. the biographical hip-hop show of the life of treasury secretary alexander hamilton won 11 tony awards the film will star all of the original tony awar winners. you're up to date. that's the news update this hour sara, back downtown to you. >> nothing like the original.

>> like disney tv-plus or -- >> we don't know in theaters, but may also put it on disney plus. >> charlie, maybe has insight. >> first in theaters and then on disney-plus afterwards how do you feel about "hamilton" in the poor trtrayal of the kino exactly flattering either way, accept it as clearly a brilliant show and doesn't need to be thought of at fact based. >> patron saint of this place. >> absolutely. >> sue, thank you. see you next hour. >> and part of the reason i didn't see it, everyone said, oh, the original cast is so much better it didn't get as good reviews for the cast wise. not because british people didn't like it, once it moved there, the original was -- >> and a memo in it, very special. 26 minutes last of trade back to mike

>> pullback getting relief rally today. is it a little bit of a chance to sell more or does it mean worse is passed? look at s&p. helps to look at one year to put the pullback and today's bounce in context didn't change the story much you can see, sort of trapped above the week ago friday. below a week ago friday levels also still within that range what would be a pretty normal pullback one number to keep in mind in terms of s&p levels, 3393. early december low some trader lure says if you break the december low sometimes means a tough year a good ways away from that the treasury yield similar to story. very, very big, fast move in the last couple weeks. today nearly no move on the ten year maturities are having lift in yield but this is not far above the summertime low pretty indecisive in terms of deciding whether today's move is

much of anything besides a bounds certainly takes pressure off nonetheless. >> thanks so much for that, mike. charlie, the move has been more pronounced than the pullback we've seen. does that worry you? equities have a catch down to play out >> people are using long-ter governments as a way to hedge the market not paying underlying attention to the fundamentals whether 1.52 makes any sense. when people get nervous about viruses or wars with iran or whatever, they buy treasuries, takal yields down to levels that don't make stones me, but people are buying them. >> central bank distortion >> exactly right some big insurance companies that need to own treasuries are forced to buy these, but this is absolutely a frankly a market manipulated by central banks around the world. >> a newsletter on the coronavirus funding related to that we have more. >> reporter: and the trump administration is asking permission in congress to transfer $136 million within the

health department to be able to respond to this outbreak i'm told by a person familiar with the process this is a precautionary measure and they want to move as quickly as possible to respond to a rapidly evolving outbreak typically the administration would have to wait 15 days at least to move that money around. i'm to theed breakdown is at $75 million would go to the cdc. $52 million would go into a fund for public health and social services, and $8.5 million would go towards management expenses sos th s thethis is a sign the administration is clearly looking long term and know this is not going to be a short-term response in order to deal with this evolving crisis guys >> thank you so much for that. we have 23 minutes left in the session and at moment up 200 points on the dow. high of session well over 300

points up next, your last chance trade. >> counting you down also to alphabet earnings top of the hour 89% of analysts have a buy rating on the stock. we break down the numbers for you as soon as they cross. at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today.

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welcome back 19 minutes left in the session and closing bell, big board you see up top over. s&p up 0.7%. some of the biggest leaders there in the nasdaq. tesla we mentioned wow 18% surging and up 6% today, vido, interesting given china had a big sell-off the u.s. suffered last week, in a way mainland china did not. >> right catching up. >> yes. >> got to move on. a major development in antitrust regulation today the federal trade commission announced it plans to sue to block a $1.7 billion acquisition of shaving start-up citing

competition concerns in the consumer shaving space pg&e owns and this comes after required dollar shave club back in 2016 and the market share trends tell the story here for years gillette and schick owned the space until upstart dollar shave and harry's brought lower costs and prescription delivery and with it rapid growth the ftc says proposed acquisition is growing competition among wet shave razors and may harm consumers and razors across the u.s. hard to tell from the grafk, bas graphic. basically on the top pg&e, smaller and wededgewell ad made a dent in the market and has grown in terms of relevance and significance the edgewell share price is up a lot today and tells story of a deal the market did not like a number of analysts saying

happy that this, could grow vowel without this deal, grow the business without the deal. harry declining recently kind of missed the boat on the hypergrowth and paid a lot of money for these, for this company. again, the big brands trying to play catch-up. i don't know about doing that with acquisition. >> regardless of share price they wanted to proceed with the acquisition. feeling sorry for themalities, a play with 65% market share out there. >> gillette. >> a little unfair but by the way, share price likes it. investors didn't think it was great deal first place. and 16 minutes left. what do you got for us, charlie? >> another beaten down name. we recommend things other people are selling people selling nielsen. bear case is that people aren't watching regular tv, watching you and other people onstreaming services so nielsen's panels aren't as relevant good news, nielsen developed

wonderful technology to measure people watching cnbc or netflix on phones or computers and we think the ratings will be as important as in the past and a sale exploring the company. didn't go through. measures people buying at retail and the two companies worth abouts $35 stock trading now abouts $20. >> long-term ten-year chart from nielsen. >> at 53 bought it at 28. don't own all the down side but think now stock trading 11 times earnings what will return to a growth business as they prove they can measure what people are watching. >> touch on one of the recent recommendations. blackstone where do you stand on that a good run, you recommended it. >> crazy good run. >> it did. yes. converted to become a partnership and mutual funds

couldn't own them or indexes converted structure and stock almost doubled since then. right now at our calculation of intrinsic value and don't be shocked if you see us trimming our position there. >> there we go blackstone slips a little today off the back of a very strong one. >> up next, bringing you uninterrupted coverage of trade and taking you inside the markets. a reminder, always watch or listen to us live on the go on the cnbc app "closing bell" will be right back. >> and perhaps monday be able to track that. >> absolutely. at leaf blowers.

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♪ just about 12 minutes left of trade now in the "closing bell" market zone commercial-free coverage of all the action going into the close. >> breaking down the crucial meants of the trade. today from harrell investments as it stands, slipping a bit dow up only half a percent s&p unthree quarters of one percent and nice bounceback from friday apple, tf international security, q1 iphone shipping forecast by 10%. the firm expects 36 million to 40 million iphones to ship on the heels of apple temporarily closing more than 40 stores in china over the weekend and tim cook during last week's report saying the coronavirus could affect next year's sales down a little off the highs of the session.

mike, clearly, they hgiven a wie guidance range because of thit this does it give them leeway if it is coronavirus >> we don't know how forgiving the market will be how much apple ran. 16% off highs. you think plenty of stock to give back because of the steam climb that had it. not because this existing quarter is make or break for the numbers. i don't think it's the kind of thing, looking at restaurant closures where a meal uneaten never gets eaten again theoretically make up the iphone volume once the store is reopenreopen >> are you surprised it's is doing so well? >> buckets of these names. teslas, that make no sense and then names we think are expensive but understand why ap is in that category, so is microsoft probably even goggle,

al alphabet expensive but i don't own it. >> yes. >> and serging surpassing $700 new hi phil lebeau has more. >> tesla sings it make no sense, look at this chart just today jumping more than $100 surging to a record high again, tesla up $122 i mean, seems loony. up to $773 and clearly momentum players moving into here and some short covering going on two kwat lift catalysts today. raising price target to 808 and arc invest raising price target to 224 from $,000 to $7,000 a share. short covering for tesla short interest down to i think 18.1%. up closer to 22%, 23% a month, a moff na ago.

in january shorts lost $5.84 billion. all discussed tomorrow monning on "squawk box." don't miss it exclusive with longtime tesla bull who said for some time elon musk is the magic man and he will lead investors to the promised land that's the case today with tesla shares jumping $122 just today. >> phil, thanks for that worth reminding, a firm holds shares as opposed to just an independent broker mike, the run we see people say short covering, what stage are we at in terms it of outstanding amount >> gone so far beyond what can solely be explained by short cut. as said, short interest down by 20% and the sheer volume point to the dollar volume in tesla shares $32 billion in the dollar volume it's three times what apple's dollar volume is today in the

stock. apple is ten times as large in market cap tells you about a frenzy happening now totally detached from anything else going on. >> usually happens in that scenario. >> at some point the fever breaks, because look how much hot money on paper profits have been built up day after day after day after day. oncen seen, even short-term basis, relative short term, 90 never get to 90, short stock usuals momentum chasing and enthusiasm for one massive area of growth, that similarly happened in beyond meat and in tilray and the other big idea stocks of tomorrow the difference being, tesla has $25 billion, $30 billion in revenue. absolute real company with tremendous market opportunity. become unhinged short tern. >> shares of l brand down after a new report from the "new york times" about the culture within l brands owning victoria secret

specifically current and former employees, l brand ceo, ed razek provided over misogyny bullying and harassment razek had repeat complaints made for inappropriate conduct and wexner made demeaning comments towards women on multiple occasions. this on the heels wexner is in stocks to step down and possibly sell off the victoria's secret brand and actually been pretty good for the stock overall, mike, outpoerformer in january. number one on the idea it could get sold or sell off itself in pieces. >> exactly at some point going to be something that realizes value embedded inside this company and an interesting test for old mall-based retail if you find buyers for one chain or spin it off. looked at it on a kind of cash flow multiple basis, l brands, similar to gap trade, similar to

abercrombie, where they trade. might have a little market test whether there is some kind of private market value that's different from what the public market has. >> and selling with five minutes left and only up 0.7% on the s&p dow. half of one percent there. shares of biotech company, therapeutics soaring on approving a peanut allergy drug. we have details. >> reporter: the first fda approved drug to treat peanut e of peanut protein. the idea is that it exposes kids with peanut allergy to tiny but increasing amounts over time to help build immunities. the goal, reduce sfar severity reaction prices the treatment $890 a month on a list pace basis before rebates back to you. >> meg, thanks. >> very expensive.

>> thank you for that. we've got, what? five and a half -- sorry, four and a half left of the session gearing up to report earnings off the bell josh, hi. >> here's what the street expects. q eps 1253 on revenue. 46.94 billion suggesting 20% jump on the top line as analysts think ad spending stayed strong in the quarter checked in with aaron kessler-of-raymond james also closely watches google properties the company bread and butter, the company it owns and operate, search, youtube. wants to sees 3ds 2 billion in the quarter, jump of 19% back to you. >> josh, thank you alphabet had a good run, charlie. you insinuated, looks a little expensive? >> yeah. this ties to what we talked about earlier. ftc and antitrust and some of the political issues going on right now. there aren't a lot of things republicans and democrats ay glee on. do agree big tech is too big with too much power.

i think that a more aggressive ftc even under the trump administration will take a hard look at a couple big tech names and i think this name would be on the short list. >> i guess the market kind of moved on from that. >> absolutely. >> that worry. mike has more on market internals. >> kind of indecisive, actually. look at market breadth, up versus down volume to the positive side not in a dramatic way at all considers wr she very, very lopsided for days to end last week. a net positive and nothing you could draw strong conclusions whether a strong upset consumer staples versus consumer discretionary over the last month or so. obviously staples outperforming. seeing an upturn in discretionary the last couple of days home depot, 4.6%, big mover behind the discretionary and consumer index, dual peaks, well

hedged i think trading complex in general related, relates somewhat to the coronavirus also to the democratic primary. stubborn bid here for down side hedges got the vix at 18. >> up 140 points on the dow. check in on bonds. rick santelli. >> thanks. bonds started to sell off pushing yields a bit higher evading the flight to quality based on coronavirus after a big jump off three-year lows by ism. didn't last long train day of 30s now slipping into negative territory having settled at 2% look at 1.5 week of the fed fund futures for june they are now close to 60% chance that meeting could have an ease finally year-to-date dollar index, thursday and friday based on selling of coronavirus, today a different story and bertha, green all day at nasdaq. >> all day and today, really feature insane -- we talk about

tesla. tesla and microsoft contributing same amount in terms of point impact saying something at a market-waited index, nasdaq 100 with microsoft speaking of companies highly shorted such as tesla, peloton reporting wednesday and that assumed short interest on about 14%. just in january. it's now at about 80% short interest in respect a highly volatile stock this week and finally chinese internet stock moving higher after close friday raised its outlook and did postpone earnings because of the coronavirus. over to bob. >> s&p 500, take a look. nice initial rally oversold conditions very good manufacturing numbers overall. sideways since the middle of the day. beaten up material names like freeport a horrible month down about 12% rallying overall

even the banks had a tough time. regional banks fifthfrethird an regions financials see if there's a broad you need better news or coronavirus. closing bell dow jones industrial essentially in the middle of trading range 144 upside, s&p up 23. just joining us welcome into the "closing bell. >> here with mike santelli, senior markets commentator. >> the markets, s&p closing high by 0.7% off the highs of the session with a little selling into the close, still a significant rebound. dow closed higher by half a 1% or 140 points. high of the session, 374 bigger intraday slippage and nasdaq outperforms at 1.3%

up closing that, and industrials joined energy in the red in terms of sectors on the s&p. energy the only redecliner. >> and didn't do as well today as we had seen technology and materials in the lead mostly selling in bonds overall a better turn. coronavirus headlines still dominating the market. moments away from alphabet earnings we'll bring you the numbers soon as they hit the wires. and here from capital wealth planning and charlie from aerial investments. first mike on the action we saw today and what it tells you. >> markets relaxed a little bit. friday the stock market dropped kind of front loaded what asia would like like when china opened up again. nos as bad as feared and probably takes incremental bad news on the coronavirus side to get things shuttled past friday. in no-man's-land here.

pullback in the s&p. bobbed back up to a level basically where we started the year and kind of sideways waiting for the results of iowa and obviously brace for anything else on the china front. >> where do you stand in terms of the size of the fallback? 3% or so was that enough to get bullish again? >> like 3.6%. bob pa sauisani ht what you've got here is an oversold throwback rally, and my friend mike santoli's got a right. in no-man's-land internals today are not all that bullish. so i think it's a wait and see market on a short-term trading basis. on a long-term basis, still in a secular bull market that has probably another five to ten years left on the upside. >> china was a big -- wow. a long call.

8% down day in chinese stocks, charlie. china did step in. they had a surprise rate cut on repurchasing repos how though do it basically infuse add ton of liquidity into the system what else are you watching out of the chinese authorities that would make you more confident with this market >> unfortunately, we have to see how viral lent this strain is with the coronavirus neat to get behind this. other scarce history, things li malaria had a huge impact for a long time. i know what i don't know and i don't know how serious this is going to be. >> mike what do you make of the move in yields clearly again we've seen a bigger rebound to the up side in stocks than we have on yields. paints a picture of some more severe risk aversion that perhaps hasn't affected the markets yet? >> risk aversion, short-term

disinflationary impulse. obviously revisit what the thought the global growth number would look like for first quarter anyway we're not easily freed up from that late-cycle thinking that any shock is somehow going to knock us back into a direction of, towards the zero line for growth i'm not sure that's the case but i think that's where the market rushes to on a reflex basis. >> alphabet is plunging almost 5% after hours looks like a revenue miss. go to josh lipton in a moment. and headlines dominated with the coronavirus. >> generally better than expected better than feared a lot of people thought the first quarter would be soft. some of the more cyclical names had bdone better. banks had done okay. noul wee see the people who haven't reported yet, the impact

on the full year. >> dive into the alphabet numbers. josh has numbers. >> alphabet reporting epss $15.30 expectations $12.53. b on the buy line. top line comes in light. 46.08 billion. street closer to 46.94 billion breaking out metrics, too. youtube ads breaking out for the quarter. 4.7 billion dollars. going the properties 31.9 billion. google advertising this number 37.9 billion google cloud breaking that out as well here saying 2.6 billion in the quarter for google cloud obviously a big focus of attention for executives there google to other bets comes in at 172, and total tech, 8.5 billion. guys, back to you. >> josh, just in terms of breaking out cloud and youtube

ads. seems they're given a lot more on the disclosure front, something investors really wanted to see from google. is that true >> yeah. absolutely true. ip think you have analysts coming out to break out the numbers. they'll tell you it's a big focus. they want more disclosure. interesting. early december, sunder becoming ceo. what does that mean? new engamt with the street new metrics and data points? interesting they're breaking that out 2. billion a focus for the business put a lot of money and time into it just heard by the way, of course from two big rivals amazon and microsoft, very strong results for both of their cloud businesses, too, guys. >> josh, thanks. and 2.6 billion shows a lot smaller than microsoft and amazon websites in terms of absolute size of cloud. >> yes. >> the other thing that jumps out on the revenue line is a slightly dit appointing core

advertising number might be what people focused on. the profitability coming through on the eps line strong. >> without a doubt also a situation where this is a conference call mover very often, because there's a lot of questions what they're going to do inner terms of capital allocation, first quarter, full quarter with the new ceo here. you don't want to draw too many conclusions here i don't think the youtube revenue numbers are wowing anybody out in it's well in the range of what the estimates were there of 16 billion to 25 billion as an annual run rate. i don't know if that's why the stock is bake backing off but applaud the transparency but not thoroughly surprised at the mag in a -- magnitude of that business. >> and some focus, 21% haven't gotten to the bottom line that's an important focus as well. >> sure. and what investors should expect

along those lines is honestly i think a lot of the fixation right now in terms of margins and said cost discipline. >> worth the ceo, a lot more cost discipline. right? >> yes. >> and redefining their relationship now with investors under this new ceo, as josh said. >> thinking with the founders backing away more of a close xrut fscrutiny to longer term projects outside the core. >> and charlie in terms of new ceo in place, what type of arguments could he lay out warning you of an expensive stock for you? >> this is not tesla this is not smoke in mirrors this is a very good business with operating cash flow getting better 20% margins are a lot better than a lot of advertising agencies one i would not get in the way of some of these are destined to fall more disclosure than we love i wouldn't get in the way of this. >> still 18% revenue goethe even

with a miss. 20% without thecurrently impact. >> and trading -- for size of the business, they're close to 20% top line growth still is pretty amazing. i will say it came into this report, at a relatively expensive spot i like to look at free cash flow yield of businesses like this. it's as aggressively value and that business as a decade ago as a much smaller company. >> what's your take on the big earnings stocks and how they performed following earnings are you encouraged overall they held up well given the strong run from last year >> i think earnings will come in better than expected i think. i heard they wouldn't the past three years, and they've tended to come in better than expectations in terms of google, i've been bullish on google since it came public in my presentations at public seminars i asked how many used

google before it became public hands go up. i didn't you buy the stock pure peter lynch stuff there google has a great business and i think it's a great company. >> ho do you respond to charlie's concerns it's front in center in term of the antitrust investigations and in terms of action >> that's a wild card. i lived in d.c that concerns me i think the politicians stay away from corporate america. and leave it to itself, because it's basically self-correcting. >> there we go i'm sure they love to hear that. that's how it played out leave that go. thank you both so much great to see you. >> you bet. >> thanks. up next, we'll dive more into those tealphabet and how t deal with it and later talk to cme groups terry duffy about what is

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welcome back a new alert on facebook. we have details. julia? >> fatebook announces the co-founder and ceo of drop box is joining facebook's board of directors mark zucker berg saying he brings valuable perspective to our board as

leader of a technology company with services used by millions of businesses and where tech knoll is going and how to build a culture delivering services that always work well. of course, houston ran drop box and zuckerberg controls because of controlling over ship of his stakes in the company. back to you. >> do these two know each other well do they go back a long way or has this been appointed by a kind of careful headhunter looking at the best candidates >> i'm sure they had a lot of people weighing in on this decision, but i would expect that houston and zuckerberg have known each other many years. living in the same circles and attending many same conversations including sun valley hosted by alan and coe and various conferences. live in the same world, very farm with each other and i expect know each other fairly well. >> julia, thank you.

meantime shares of alphabet falling after reporting q4 results. and joining us, a hold reading on the stock and buy rating already shires back from worst hours after hours. breakout klaus and youtube what stands out to you >> yeah p i thid ank a risk added transparency pushing google for youtube number to get the cloud number and then also they bought $7 billion of stock back remember, it's been their largest buyback ever $20 billion left on the buyback plan there's inches now, in terms of not gaining miles but unchs incs becoming more stock holder

friendly ebitda growth 15 significantly below their growth rate and we think it's a step in the right direction. >> what you make of the traffic acquisition costs and operating margins? >> actually, we think both results were pretty positive the traffic acquisition costs stayed around 22% of overall ad revenue consistently the last four quarters. no longer facing that pressure, but, however, we would -- we do recommend focusing a little more on the ad revenues, which came in below consensus, below estimates. we think a variety of reasons. variety of reasons why the ad revenues have been impacted. one is probably gdpr, impact of gd pr on the ad revenues saw something similar wi revenu.

the youtube revenue was better than we expected in in our internal forecast and also the cloud. i think the cloud is very positive, and in these days when google is facing antitrust issues focusing a lot on the online advertising side of the business, it's really good to see that their enterprise side of the business, cloud, performing very well. >> yeah. what did up think about those two? can youtube live up to wall street expectations and cloud? we know a distant third to microsoft and am somazon but ist grows fast number? >> the run makes sense in the ballpark where most thought it would be. cloud is a rounding area relative to amazon and google includes applications going -- sorry, amazon is largely infrastructure coming. the numbers are actually a lot smaller when you strip out the apps and make it light for

light. amazon is so far ahead add microsoft and google together there's as $15 billion delta between where amazon is at i mean it's like patrick mahomes versus the rest of the quarterbacks in the league none to compare. google's number three and doing great, but they need this to additional transparency and reminds me what happened with microsoft when ballmer left and nadella took over. they're making the right moves, and, again, this is the first glimpse. again, we have the cloud, buyback moving up. it's great still a lot of room they have to improve. again, we like the stock at 11 times ebitda. >> and what do you want to hear from sundak? >> hear more about reasoning behind a slowdown in advertising revenue. we'd like to hear a little more about the, the status of the

fitbit and looker acquisitions s as you know the department of justice is looking into those acquisitions and more color if they're actually provide more transparency on the guidance side i agree with your other guest that the transparency they've shown in terms of breaking out revenues is very helpful but we'd like to basically see more confidence from the management in terms of in which direction the company is moving and guidance, more plart polarity a. >> thanks for joining us still ahead, discussing the impacts of the coronavirus outbreak and what it's having on the market and joined by today's "closing bell" closeout. terry duffy. and reminder you can watch or listen to us live on get to on the cnbc app "closing bell" will be right back. ence. mmm... good.

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take a look at shares of tesla closing up almost 20%. 19.9%. biggest gain since may 2013. $780 per share a stock trading below $200 just last summer. by the way, may 19th, 2013

surrey didn't catch that say again. >> accidentry. and last tight, 2013, first time tesla report add profitable quarter and "consumer reports" gave model s best review of any car in the magazine the history. not sure what happened newswise today to cause that, i mean the love continuing to ride high after what's a remarkable few moss for tesla. >> extraordinaire run. time to get to mike. >> a couple of different manufacturing indexes maybe moving towards a tenuous consensus. at disagreementy while the more official ism manufacturing index in the u.s. and market manufacturing index kind of a give one relatively newer that seeks to do something similar. a lot made of this divergence here late last year. ism plunging negative territory below 50 showing contraction in

the sector while the market looked better. the question what would happen once these perhaps started to come closer and obviously happened in a positive way today. above 50 reading on the main i m number probablyrelief and what's going on with china with trade and what can we extrapolate from this? other thing on the negative side but a little comfort to say it wasn't as if the market was giving us a false idea of what was happening. >> mike, thanks for that. up next, cme group ceo terry duffy weighs in on the return of market vol teddy and the big board's recent bounceback. "closing bell" back in a couple of minutes. whether your beauty routine is 3 steps...

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to help create real economic opportunity... ...for the future. time for a cnbc news update with sue herera. >> what's happening at this hour, everyone on capitol hill, president trump's defense team presenting its case during closing arguments at the senate impeachment trial. >> we believe we have established overwhelmingly that both articles of impeachment fail to allege impeachable offenses and that, therefore, both articles i and ii must fail. >> longtime conservative radio host rush limbaugh announcing on this show he has been diagnosed with advanced lung cancer and said he will miss shows for treatment. he then told his audience his

job provided him with the greatest satisfaction and happiness of his life. ending on lighter note shall we super bowl quarterback and mvp patrick mahomes participating in a celebratory parade at disney world. and a make-a-wish child named nathanael. disney parks is donating in honor of mahomes mvp performance and done it for every super bowl since 1987. that is the news update. sara, back to you. >> thank you. getting new details about alphabet results back to josh lipton. >> sara, you can see the stock following in the after-hours and a report out holding a brief call with reporter fielding questions. one reporting a beat on bottom line you can see top line swung and missed $46.08 billion forecast the $46 poi.9 billion d

asked challenges that maybe investors and analysts should be aware of she simply said, listen, they're pleased with their ongoing strong growth as she described it very pleased, her words, with cloud momentum the hardware didn't sell well over the holidays but compared way stronger report from last year perhaps suggesting tougher comps. as for the crowd, you have been talking about, new disclosures from the company breaking out the search business. up 17% youtube ad revenue and 2019 ended with a $10 billion analyzed run rate for the cloud and the core specifically about $2.6 billion. so was that more than what investors expected look at the price action in after-hours maybe not. google's rival just reported

numbers that were strong microsoft, azure estimated $4.8 billion in the quarter. finally talked about expenses as well they came in total cost and expenses for the quarter $38.6 billion up 18% saying listen, they continue to invest in long-term opportunities. certainly that has been cloud computing. we know the company has been invested in sales people, buying equipment and building out datacenters. this conference call starts at 5:00 p.m. eastern and i'll be on it back to you. >> josh, thanks for that. down 4% in authorized trade is alphabet. the last two weeks the s&p fell nearly 2.5% and the vix 50% coronavirus continuing to strengthen just below 18 at the close of day bring in our closer today. chairman and ceo of cme group

thanks for joining us. >> appreciate you having me. >> talk us through what you think about the volatility levels given all the big macro risks and concerns in the last couple of weeks and pullbacks from the highs a reasonable jump in volatility? do you expect more >> the word you just raised is a good one reasonable i think it is reasonable volatility compared to what's going on in the world. talk and the coronavirus and what's going on throughout the asian communities, what's going on in the united states geopolitically a host of issues volatility is at a reasonable level and could spike higher some could say. same time, we're here to manage the volatility around doing it but seeing quite a bit and most in the equity complex and then seeing a little bit more in the oil complex with the sell-off we've seen recently in the markets. >> to talk a little more about those different levels that

we've seen year to date equities, oils, bonds, when you see how much more of a risk aversion moves we see in areas like oil and bonds does it make you pause and think equities are more of a pullback, or not >> the really difficult to predict that, because i mean who would have prishedicted we'd see tesla stock where it is today? it's tough to say what's going to drive what market down to what level or up to what level we're seeing equities at all-time highs, interest rates at all-time lows and now energy look tat in the mean as $50 some odd a barrel take the 130, and in middle to low end of it it's hard to make a prediction if this continues to drag equities one way or the other. >> see anything related to the election, terry? sanders gaining momentum in the

iowa caucuses. >> sara, a great question. we don't have enough time on your live show to discuss it i think the first time if we have a very progressive government coming in you could see a whole new pricing of assets i'm not sure if they're going up or down. a whole new philosophy than we've seen people coming into the white house. progressive movement with bernie sanders being front-runner, appears he will be, you could see pricing assets in a new way several months going up to the election. >> what was the terms structure of various hedging options telling you about how quickly we could see the market react with just a victory tonight? would that see a big valuation or do we need to get past super tuesday and see the nomination fully confirmed? >> again, head the nail on the head look at the way markets react, they don't give you a lot of

opportunities. ra reacting quickly super tuesday and beyond, and every time we have this kind of momentum whether an election or something fundamentally in business you'll see a quick reaction and then you'll see it come back one way or another no different than we saw friday with coronavirus and everybody says, take a wait and see approach going into monday and tuesday this week and then instead saw a rally. you never know reaction is immediate no matter what the situation may be. >> terry, how about bitcoin having a great january up almost 30%. what's with that is it a safe haven what are you seeing in futures. >> you know what, sara, i think it is. i think people are using bit coy coin like gold seeing an uptick set at that level of 7,000 at bitcoin so long and uptick 9,000, 9,500 on bitcoin. we just listed options on

bitcoin. getting interest there we're seeing more and more people participate in bitcoin but you hit the nail on the head more of a safe haven similar to a gold trade. >> terry, as we watched these markets, so much more attention now, is it on the systematic trading systems. hedge funds or ones that are risk parody using futures and interest rate instrument and one against the other. has that fundamentally change the rhythm of the market far as you can tell and what has it meant for your business? >> i don't think it's change the rhythm too much of the marketplace other than passive versus active-type managers and need to do either more layoffs or less, you might say our business i think has been steady for the most part and people need to manage that risk. even though i think when wilford started the conversation, vic around 18. up significantly it's coming off a very low base. so i think people need to manage that risk, mike.

that's not going to change there's just phtoo many events that can happen so quickly if you're note already hedged up, it's too late after the fact you'll see more and more people continue on with this no matter passive or active in the marketplace. >> terry, so many people understand you link your business and the trading desks of investment manx to the macro outfit and shows where they're heading given into the cycle i was in goldman sachs yesterday and clear they felt returns for their trading business could improve significantly in years ahead regardless what the mark crowe environment is how do you feel about your business at the moment regulatory challenges both here and in europe last couple of years and some smaller players have fallen away did you feel strength in growing bottom line and then top line in the next five years?

>> difficult to determine what your top and bottom line will be cme is 80% of our revenue. look at just financials in general especially the banks, last several months they were reporting out some fairly kig sent upditicks and that's good o cme and have capital efficiencies with capital projects and getting offsets against the cash with acquisition of the next exchange the broker tent sitting alongside our future platform creating efficiencies for people mitigating that risk it's a good thing and seeing financials more and more people are participating in the markets. i think they have to just to mitigate the rick that the unknown risk, as they say. >> terry duffy, good to see you. thank you. >> thanks, sara. appreciate it. still ahead, we are joined by the man who killed and resurrected mr. peanut during last night the super bowl ads.

up nt,ex ceo gary vaynerchuk discussing the state of the ad business. ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg. and now for their service to the community, we present limu emu & doug with this key to the city. [ applause ] it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. and now we need to get back to work.

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the kansas city chiefs making history winning their first super bowl in 50 years other top moments brought to you by the ads including the baby nut commercial by planter's and social media following knows you as, how do you define success after the super bowl and the three ads you were behind? >> you don't strictly business. the most fun i'll have talking about it because we're in a business show and business environment. you know i could care less about the twitter mentions or what "usa today" said or the industry magazines says wa good bad or different. not because of audacity but they're opinions reality, spending that money trying to build your business. on the day after, not much more about three to six month wait to see how the brand awareness becomes real. >> interesting because so i would think that

the more viral buzz you get whether good or bad, i think "washington post" put that one in one of the worst ads, just because -- i don't know. some people thought it was inappropriate. i don't know but that's good news ultimately for the bottom line, because when people are talking about it, they'll buy it. >> i'm not necessarily about all publicity is good publicity. something that it was bad that might lead them to not considering the brand. flip side. whoever wrote the "washington post" piece their human opinion is completely irrelevant to the p & l. >> presumably you and twitter and other social media platforms transformed the bang you get for your buck buying an incredibly expensive slot on the super bowl because these 30-second curated videos get seen by way more eyeballs for way longer than just one moment. back to a decade ago ng.

>> yes. >> how much difference does that make does it make if a cheap slot >> aye say until things change in america the super bowl ad is grossly under priced at $5.2 million a slot because of the dynamics you're referring to and even without the internet it's the one time misamerica sits do and actually wants to watch a commercial every other moment in our lives, we hate them. >> full-out question on that, then, is, is there still a lot of growth to come in the social media advertising space when you consider the amount of energy expertise creativity and money that goes into creating these tv slots versus your average ad you see on social media, which is a bit more basic does that suggest social advertising has much more influence and power to glee iro into >> yes. >> when do you get to that, spend for $5.2 million to create first and foremost to twitter,

as first and foremost the super bowl >> the mr. peanut spot normally gone on the super bowl ran on twitter first and completely took over the conversation and set us up fon tr the ad we ran. first on the digital than the tv spot. >> when you killed mr. peanut. >> that's correct. >> why did you kill mr. peanut >> because i'm on the show right now talking about it because you have to do thing to break patterns and had a plan creating another character we thought we could double up on the quick feat. >> irony, people hadn't thought about it revived mr. peanut by killing mr. peanut >> go figure. >> and the celebrity, what works? >> if you pay the right price. without knowing all the other spots. a celebrity or influencer or human or anchor on a show is an arbitrage. >> sara and i are very

expensive. >> you know, your bosses wimake that decision. looking now at zach king he's an enormous youtube audience and the costs, becky g. or ckacambucha girl creates relevance and somebody past or present, it's arbitrage. >> and is it big for the artsing industry you'll know who the viewer is. >> yes i love when you're going. >> you're not letting me finish my question. >> you're asking very smart questions. yes, if i can target somebody at amazon firestick at 50 million homes know they buy pet food, the commercial watching regular

television and i can target them with pet food is a remarkable arbitrage. >> which is the best platform for advertising? >> depends what you're trying to do 14 to 22-year-old, tik tok 50 to 99 years, facebook. >> and when i watch nbc sports through hulu all i get is geico. i'm not buying insurance. >> advertising on the flip side on underpriced, the most overpriced stocks traditional holding company agencies who continue to want to go broad and sell vanilla there's no reason for you to get that ad. it's called the agencies that service the fortune 500s now are worried about their & l and selling vanilla. >> peacock and -- >> i don't know who's advertising and who the creative shop and their compaapability of selling 800 ads instead of 1. >> fascinating conversation. come back again.

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welcome back time for the final installment of today's views. >> market is a homogeneous sample concentrated in ownership. look at this report from goldman sachs actually looks at the top five largest stocks in the s&p 500, how much they represent as a portion of the entire index back to the 1999-2000 levels in

terms of 18% in five stocks. however, more of the earnings of the index is reflected in those stocks than it was back then pup see here 10% to 12% less expensive, still very concentrated a different type of concentration, who owns stocks and mutual funds a different goldman report percentage of stocks and mutual funds fund owned by the top 1% in terms of wealth, americans as you see. increase, 56% of all stocks owned by the 1%. interesting here is has in the late '90s, it spread out more. more democratization who knows if how that goes and what we are talking about with the political debate. >> segues nicely into the story after the break. taxing the rich. democratic presidential hopeful mike bloomberg unveiling a $5 billion tax plan targeting the wealthy and holders of stock we dive in, rit eaghahd.

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democratic presidential candidate, mike bloomberg, unveiling his tax plan robert frac robert frank here with the details. >> mike bloomberg's $5 trillion

plan is less than a quarter of the size of elizabeth warren or bernie sanders'. he would hike the top income tax rate for 44.6% and raise the corporate tax rate to 28% and tax capital gains he would hike to 46%. that's for those making more than $1 million a year he would get rid of carried interest one thing you will not see is a wealth tax this for a man worth $60 billion. he would pay more than $10 billion a year under the warren or sanders wealth tax. >> if he wanted to sell any stake in his company, he'd be hit with a 56% capital gains tax. the factors that stand out most in terms of surprising stark contrast for an entrepreneur and our audience, for that matter, it is the capital gains tax number. >> it's huge

you're right to point out the 56% rate, which would be the rate if you live in california or new york, as he does. because you're adding the state and local as well as the federal rate which because of that $5 million sort of surcharge on those making more than 5 million goes up to a new top rate of 44.6 so from 20 to 44.6, plus the state that gets you to more than half of your capital gain paid in taxes, which for investers would be a huge bill >> so is this more moderate than some of the other democratic candidates or kind of right in there with them? >> well, in any other election cycle this would have been considered an extreme tax proposal, talking about especially capital gains rates more than doubling but when we have two candidates proposing a wealth tax, we we never had before, suddenly this becomes a more moderate proposal it is slightly larger than

biden's, but just a fraction of the warren, sanders plan >> he's someone we know does a lot of polling, extensively. one can also assume, maybe part of this is he wants to offset his billionaire tag but the other part this is what the polling has told him, the democratic base wants to hear, more taxes. >> we can talk about how crazy the tax rates are for our audience but for most of america having the wealthy pay what they consider more of their fair share is wildly popular, not just among democrats but also republicans. if you're bloomberg looking for the middle vote, the moderates, perhaps even some republicans, this is a smart policy. >> thanks, so much. coming up next your wall street look ahead. the key things everyone needs to watch. tonight don't miss a special report on the coronavirus here at 7:00 p.m. on cnbc

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>> i don't think that's material disclosure of corporate information. >> he has a lot to celebrate he had the crazy pay package -- >> it's still on the way. >> -- tied to very ambitious goals. looks like if he can keep it above $100 billion -- >> averaging $100 billion for six months and then 30 days consecutively for that level he's way ahead on this one. >> then he has to burn the shorts. >> three fire emojis doesn't do it justice we'll hear from bp, sony, ford, chipotle, ralph lauren, snap, and many more tomorrow on earnings >> down 4.7% after what was seen as a revenue miss. the company did break out the cloud revenue and the youtube ad spending for the first time. youtube is seeing nice growth. >> very good growth. i think everyone embraces the

greater disclosure i don't know that it was an eye popping surprise in terms of how fast and growing that business is what you hear on the call about their expectations for margins and things going ahead might be the big deal. >> we're out of time that does it for closing bell. >> fast money begins right now >> yes, it does. this is fast money, i'm brian sullivan good evening your traders, strooef grasso, karen fineman, stocksstaging a rebound after friday's sell off. should you put your faith in stocks when so many out there are getting bearish. stocks may be up today, but oil is not china demand collapsing, crude off to the worst start in 20 years. is this the beginning of a deeper routeor