it is 5:00 at cnbc global headquarters and this is your "five@5. investors shake off the growing threat of the coronavirus. to infinity and beyond, tesla shares are surging something they have not done since 2013 taking an entire sector on the ride >> delays in des moines as the first contest of the 2020 presidential election is thrown into disarray.

and coming up short, google parent company alphabet underwell amming underwelling and facebook board new friend. that is trending right now ♪ >> good morning, i'm dominic chu. your tech to watch is tesla. coming off the biggest one-day jump since 2013. it was up huge up another 3%. just look at that charge, a massive surge in tesla stock more on that throughout the

course of the day. here is how stock futures are looking. take a look at the dow, we'd be up another 330 points. the nasdaq up by 100 at this stage. investors are looking to add to yesterday's gain after the selloff. the dow still needs 459 points to get back to wherewith he were remember friday, down 603 on the dow and up 104 yesterday benchmark note years a hair be lee 1.6% the two-year just below 1.6% briefly dipping below $50 a barrel

back up to $50.82. up about 1.5%. over the course of one week, up by about 5%. bouncing back around the world as well. not just oil but equity markets. in the asian trade, a lot of green. shanghai composite up, nikkei composite up a bit of a bounce back in europe, as can you see there, very, very green on the screen the ftse 100 in the uk up 1.3% similar on the dax i don't see any red there. very much a positive trade around the world let's get the latest of what is happening with the coronavirus outbreak rahel has more on that >> officials in hong kong have

confirmed a 39-year-old man there has died the second death outside mainland china medical workers strike in wuhan. they are demanding that border with mainland china be competely shut to stop the spread. officials in china revealing another 65 deaths and more than 3,000 new cases have been discovered there bringing the total now to 426 deaths and more than 20,000 confirmed cases. in macao, casinos will be closed for two weeks as they confirm the 10th case. and hyundai plans to gradually suspend production at the south korean factory you can see that corporate effect there with hundred diyuni

>> the response, for sure. tune in tonight, the cnbc special report on the coronavirus continues at 7:00 p.m. eastern only here on cnbc. the place to go for all of what is happening to google now, shares of alphabet lower matching on overall revenues bigger than expected losses in other bets and slowing growth in ad business. the company breaking outnumbers for the youtube and cloud businesses for the first time. generating $15.15 billion in sales and more than $1.7 billion in the fourth quarter alone. back to the broader markets, wall street trying to stage a

two-day come back. as atlantic fed president shares his own view saying, quote, if this becomes a world issue, then that's a different type of event than i understand it to be today. adding, it hasn't changed my outlook or expectation about our rates path with that in mind, joining me now, our guest it is interesting, matt, as we talk about the comments. the economy seems to be a big focus because of the coronavirus. are you as concerned now as some others about the global economic impact of this outbreak? >> yes, i am especially as it looks towards the markets. we hear all of these comparisons to the sarmas 18%. it is much more consumption

driven now i don't see these numbers or that the virus is getting any better if anything, it is getting worse. going back to 2003, the stock market was coming off a decline of over 50%. we are coming off an advance of over 80% instead of the market being oversold and undervalued it is overbought and undervalued. people need to be careful here if it continues to spread the way it is and cause problems it will have an impact on earnings and growth. you don't need it to have a recession and cause the decline so far >> yes, we have some ground to make up to get back to where we were before last friday. we are looking at the bottom of our screen here. does this mean the pull back is

done >> i don't think so. again, are we really going to hear an all-clear sign i don't think so >> i'm not an expert or a scientists this will be with us for a while. if it is a long while, we'll have major problems. the market doesn't need to go down 3%, 4%, 5%. now there is a reason to pull in your horns a little bit. i think we'll get in something before we see the final bottom does that mean you are a buyer >> you are not a buyer just yet in this market >> definitely not a buyer yet. especially after this huge run we've had after 12, 14 months. if you miss this next bounce, it is like buying insurance

you don't have to spend it to buy puts on defensive names. sometimes you miss an opportunity clause it is okay to put up with that you may have to spend higher later. but that's okay because you have an opportunity to buy on a tip i think is coming. >> thank you for those thoughts. we appreciate it p whwhen we come back, live report from iowa delays have thrown the first battleground into disarray and the one sector getting a boost on monday. later on, crude in crisis. the growing impact of the coronavirus and what it may be having in terms of the energy patch in 2020. a very busy hour still ahead when "worldwide exchange" returns after this to keep me moving the way i was made to.

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we are following a developing story out of iowa where we are awaiting results. democratic party officials there told the campaigns that results from yesterday's caucus will not be revealed until later on today. joining us now from des moines,

iowa what exactly are party officials saying about this and what is to blame for declaring a winner here >> dom, good morning to you. it is quite a mess here. they are actually blaming technology they are saying that there was a problem with the new app they were using for party captains causing all kinds of questions about whether the app crashed or got hacked they claim none of the above there was inconsistencies and they wanted to verify each one of the votes cast going hand by hand the old fashioned way it was such a strange night

after all of the hype and the leadup to the giening of this 2020 election. it was so weird to see that no one could have expected an end like this. we waited and waited by the end, all of the candidates came out and claimed victory here before they head on to new hampshire >> a lot of them declaring victory. the one getting a lot of buzz is pete buttigieg is there any indication that he's justified in taking a bit of that victory lap he took last night late >> absolutely not. no one can say that their numbers or intel is correct. at this point, there are no official numbers out anything the campaigns are saying or touting are internal numbers or things they have pulled at these various locations. no official results yet.

they claimed victory in some respect. they hope that kind of, quote, momentum will take them to new h hamshire >> thank you for that. still on deck, breaking down the sharts you can't afford to miss as stocks look to regain that lost ground. >> announcer: today's big number, 20%. that's how much wti crude dropped in the past month. falling lobew $50 per barrel on monday to its lowest level in over a year. ywhere. prevagen. healthier brain. better life.

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let's check on some of the big stocks on the move sony's third quarter profit falling but still beats forecast helping to offset a decline in the company's video game business as consumers wait for the new play station 5 net outlook coming on that trade. bp's fourth quarter profits fell on oil and gas prices. shares are rising as the company is raising its dividend.

all on the last day as dutddly prepares to hand over the reigns >> and nxp semiconductors even after first quarter revenue outlook is slightly higher confident demand trends are starting to improve. >> straight ahead on the show, we are breaking out the earnings score card for big technology. today's judge is gene muenster and stocks on the heels of the disappointing alphabet report. s. everyone has something to say. but in a world full of talking, shouldn't somebody be listening?

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welcome back to "worldwide exchange." i'm frances rivera with your news headlines president trump is said to give his state of the union address the second time in history a president will deliver it while the senate is holding an impeachment chie impeachment trial. a final vote is scheduled for tomorrow at 4:00 p.m. eastern. senators are expected to acquit the president. conservative radio host russ

limbaugh revealing that he has been diagnosed with advanced lung cancer. he said the only symptom so far is shortness of breath but will step back from the show while he undergoes treatment. he hopes to be back on the air thursday the faa said to craft new safety standards for unmanned drones the biggest update yet under under standards, the faa certifies the design and rely ability similar to how it governs safety of gliders and other aircraft amazon and other companies seeking to get approval of drone use. >> thank you for that. still to come, we are live in beijing where china races to slow the spread of that deadly coronavirus, which has now taken the life of a second person outside of mainland china.

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coronavirus. shares of tesla on the move again following the biggest one-day gain in six years. we are breaking down if that stock still has room to run. caucus chaos in iowa as results of the nominating caucus are delayed. the second half of "worldwide exchange" is not delayed it starts now. ♪ >> welcome back to the show, i'm dominic chu in for brian sullivan let's see how stock futures are looking. the dow jones will open by about 323 points we are near the highs of the session right now if these gains hold to the especiallying bell the s&p would open by 34 and nasdaq up by about 97 points strong gains trying to rebound again from big selloffs.

investors are looking to yesterday's gains. the dow still needs 459 points to get back what we lost thedown was down 603 points. the bond seeing a little tick higher 10-year currently 1.577% 2-year a hair below 1.4% you see the difference between those two. we are watching what is happening with oil trading near its lowest level since 2019. at with unpoint, it dipped below. 1.3% gains $50.79 there still down 5% for u.s.-based

benchmark prices bouncing back in asia as well. green across the screen. hang seng in hong kong up by a quarter percent. nikkei in japan up by 1.5% a lot of green across the screen cac in france, ftse 100 in the uk and german dax all posting gains better than 1% stocks set to surge around the world. to the latest on the world outbreak of the coronavirus. hong kong has confirmed a 39-year-old man has died marking the first death there since the coronavirus. the second death outside of mainland china hospitals in hong kong are cutting services as medical workers strike for a second day. they are demanding the border with mainland china be

completely shut down to stop the spread of the virus. officials there have revealed another 65 deaths and more than 3,000 new cases of the virus there. that brings the country's total to 426 deaths and more than 20,000 confirmed infection cases. in macao, officials announce casinos will be closed there for two weeks, it confirmed the 10th case a huge gambling hub. hyundai will suspend operations at south korean factories beginning today until next week due to virus disrupting supplies eunice yoon joins us from beijing. talk about what exactly the government is saying and how they are responding given this latest update on the number

infected and dead? >> it is a very, very challenging time businesses throughout the country are really struggling. people have been working remotely from offices. factories have been closed for companies such as retailer jd, they have the added challenge of having to continue to deliver when so many people are staying at home. i'm at a jd delivery station this station has been operating every single day throughout the virus outbreak the number of couriers here have been continuously delivering 150 packages to residential compounds in this area every day. these days, it has been higher by 30% at 200 delivers a day because so many people have been placing orders the company has not only been

delivering to people throughout the country but specifically in the outbreak area, the epicenter of wuhan obviously a challenge. they have to make sure everybody is wearing protective gear, that means hazmat suits, goggles, face masks because the areas have been so infected, they need to constantly disinfecting and putting in a lot of different measures one of the interesting things is that there have been so many companies as well, that have been donating medical supplies, especially masks have been so hard to come by. the company said it has been able to open a special channel and to deliver on average, many, many donations

600 requests so far from various organizations just to get to those workers in wuhan >> so, as we talk about some of the impacts, businesses not just there, we are also seeing hyundai starting to close plants because of the supply affecting them there how ar seeing this play out elsewhere as well? >> because the supply chain here is so integral to so many international companies. that is one of the key ways companies are being affected companies are wondering when these factories can open is it supposed to be next week there are a lot of companies and business people who are not

quite sure businesses will open and a lot are worried about coming to this pointer as well dom? >> eunice yoon, thank you so much oil prices are clawing back today with production cuts amid drop in global demand. bear market territory, down 20% from january 8 bp saying coronavirus could reduce demand by half a percent this year. let's get more insight here. i just remember so many estimates coming now about what oil is going to do given the fact that china is the biggest

consumer out there >> good morning. we indeed look at a huge impact for the oil market due to the virus outbreak we know that china is a very large consumer of oil, importer of oil we have developed a best case scenario, worse case scenario. we look at oil demand reduction just in february of 4 million barrels a day. this is a very huge impact in the best scenario, we are still looking at oil demand reduction of 1.6 barrels a day the market is reacting to this right now. >> so let's put this in perspective from your side of things we've already seen a steady decline in oil prices, not just u.s. benchmarks but world benchmarks how much is being priced into

the market is it tilted towards the worst price at this stage or is there more to go >> that is a very good question. what we know for sure is that the transportation in china is having an effect flight cancellations are having an effect. i don't think we are at the point where this is the worst-case scenario. that will play out if china is not able to go back to work. business as usual. that will be a sign post going towards the worst case scenario. we are more towards the best case scenario. the international benchmark at $55 a barrel is a fair price with the numbers of the best case scenario. >> before we let you go, let's

talk about the data points that will make you change that model or projection? >> definitely, we need to look at the expansion of this virus the reporter earlier was making the point that we could have global reverberation in global supply chain if we are looking at persistent log down in china that will have economic reverberation through not just this quarter but even the next quarter what i'm looking at is the pace of the spread of this virus. we are at 20,000 people infected if this goes on and on not just in china but the rest of the world. we go back to the draw board and our numbers will change accordingly. >> with that outlook of

coronavirus. tune in tonight for the special report on the coronavirus outbreak at 7:00 p.m. eastern only on cnbc the place you want to go for everything you want to know about the coronavirus. to some major movers this morning, shares of tesla soar to a single day after bullish upgrades and panasonic battery turning a profit for the first time names like lg chem, samsung sdi and more adding nearly $9 million in market value. watching shares of alphabet.

beating profit estimates and matching profit estimates but bigger than expected losses in other bets and ad business giving pause this morning. joining me with all of this and morning, our guest, good morning to you this is an interesting point we have a market in real rally mode despite the fact that alphabet provided such disappointment >> i was disappointed. these big tech names have the fly wheel of install case in google's case a couple of billion people use it every day. you would expect this sharp decline in revenue growth, last quarter, they grew the ad revenue at 22% in the december quarter that decelerated to 16%. expecting that to be 18% growth. you know that seems small as analysts adjust their miles.

that impact is compounding instead of having that 15 to 20% growth that impacts how people should look at this if you step back and look at the faang results, really facebook and google, the two ad plays were faced with head winds in some respects, i was surprised but we should have seen the writing on the wall >> i'm trying to figure chicken or egg here. do we glean something about the overall ad market or do alphabet and facebook results tell us something that will happen for the advertising revenues >> i think it is more the latter this is a better indication of the market ultimately, these are the two bell weathers.

you have to really spend on google and facebook. what they are seeing is more representative of what is going on in the overall advertising market i'm not a believer in facebook i don't think they put the world in a better place. i think there is no other better place to go. i do think these are the overall ad spend market. before my comments are taken out of context, even though these are decelerations. it is still healthy growth we are still talking midteen's growth in the face of google and higher for facebook. i think the overall ad market remains healthy. >> tess lue, a huge focus here i can't even describe it i don't know what is happening here >> i can't either.

this is really unprecedented at the end of the day, we are seeing a shift from people viewing this as a car company to quickly thinking about this as a tech company i want to give some perspective on where this could go their real business is a computer on wheels similar to apple if you apply a 20% growth rate on tesla and give a similar revenue multiples, that equates to the market cap. current market cap is $140 million. i agree with you i'm glued to the screen watching the movement in the stock. the reality is if they are successful to this truth, the stock has much higher to go. >> 42% gains in the last week, we'll have you back to break it down again thank you.

>> thanks, dom don't miss ron baron he's got to love what is going on >> coming up, tesla's rice and more you can't miss. we are back right after this le-e with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

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charts right now i don't even know if there is anything you can put next to that chart >> it has grown a lot more in the past couple of weeks interestingly enough, it has gotten overly bought that was a very important break out of multi-year resistance momentum has gotten to levels we haven't seen where rsi is up over 80 in terms of a range. some people look at the index back in 2013, 2017, it reached similar levels of overbought that doesn't mean it is the time to run out and sell. most would simply say, you know what, trends have gone up.

you want to wait until at least the stocks can make under the lows, under a new weekly low before you see a minor pull back it is pure acceleration higher tough to bring in those stocks it should pull back and people should slowly but surely bring in the bandwagon maybe i missed it. is it time to get on in general, i don't favor buying the stock for literally a few days it might get to 900, 1,000 who knows? trends are strongly to the upside you want to hold off before trying to short this stock let the stock show you it is ready to pull back not make any line in the sand i'll sell it now energy next. >> this has been a value trade

seems attractive >> it is tough for me to buy energy we need to see some evidence that chart going back a couple of years this should be a really important area for the index, to hold a lot of the bigger names, exon, chevron. it is getting under these prior lows seen in the fall. really worth the lower numbers seen this is going to be an important level. we are seeing a lot of stabilization. we'll see a little bit of the stabilization of the price itself if we get under xle, it is near below 60s, you could move down to the lowest levels we've seen

since 2009 >> before we let you go, we've been speaking about not really stresses in the credit marketplace but you are seeing signs right now? >> some of this could be market related. we've seen crude and the lows. this is a ratio of lqd, which is investment grade versus the spread of hyg high yield we have started to see more evidence of dropping off that was a warning sign. equities are moving up high yield started to lag. we are breaking out over this higher trend we are starting to see a lot of stress and credit >> always great to get your thoughts and artistic ability as well

coming up on the show, a rocky start to the democratic party's road to the election live to iowa where we still don't have a winner. you can always watch or listen bc us live on the go, on the cn app "worldwide exchange" is back in just a moment. [ fast-paced drumming ]

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welcome back officials in iowa are reeling over the debacle over the voting results. party officials have told the campaigns they inspect to release results from iowa caucus later today. kayla, what exactly happened to give us this confusing ending to

this first contest >> confusing and frustrating the morning after for campaigns and voters to still not have results after what they called quality control issues with the transmission of data from 1,700 caucus sites using the new app to transmit this data. a statement released saying, this is simply a reporting issue, the app did not go down and this is not a hack it will take time to further report the results many campaigns are already claiming some form of victory. bernie sander's put out their own data they say according to that impart al, imperfect data that sanders would be victorious.

29% of voters reporting. pete buttigieg right behind. but then the buttigieg campaign saying they came out victorious. they are already headed to new hampshire after spending the bulk of time here in iowa. >> stick around, we have more to talk about this. bringing in the founder of hamilton place strategies. kayla brings up a lot of interesting points i'm just looking here at the numbers. according to the entrance poll results, it is biden at 27%,

buttigieg at 20, 12 for warren and 11 for sanders but that might not even be close. >> it tells you how bizarre iowa is in every other place we talk about exit polls it is a bizarre process to begin with we hope later today, we'll have the results. that is upside down from the results we are seeing. biden has the most to lose here. he needs to perform well here. what does this mean then if this doesn't pan out the way he expects it to? >> people expect sanders to pull this out in iowa, he's a favorite son biden can't drop out of that

group. if buttigieg, warren and sanders are forming that top group and biden isn't in there, money will drive up for him and it will be hard to continue >> kayla >> dom, i want to say something about biden. they've said a lower tiered finish for biden may be what bloomberg is looking for if biden were to come away from iowa victorious, then the bloomberg campaign would see that as a difficult indicator for its path forward you did have some anecdote al data from some of the market sites where biden was not viable in the first round and so they were realigning with other candidates but reporters imbedded with

biden was that his strategy was to focus on the rural areas where tv cameras weren't it is impossible to know how that data turned out >> with regards to what it will take for certain candidates to move forward, one of the cases they have to address is health care, especially in iowa the entrance polls they put out have health care as overwhelming the biggest topic of concern what does that mean for the many esa -- message carried into new hampshire? >> economy is doing relevant it i have relatively fine. health care is that one issue that hasn't been resolved, going back to the clinton campaign in the early '90s you can pick up those extra voters will have the opportunity

to really challenge sanders. sanders has his message. his voters are not going anywhere kayla is right the voter who can be the alternative to sanders and pick up those votes will be the one chaos helps bloomberg on this. >> kayla, we'll get the last word to you here and talk about what this means for new hampshire. what p will be the strategy there? >> we haven't seen the candidate strategies only spending a couple of days there. certainly the state where bernie sanders is leading and a state where president trump has a ton of support

he'll hold a rally on the eve of the primary there. there are some deep red pockets in the state it will be a battle. >> thank you very much great reporting. that does it for "worldwide exchange" this morning stock futures are set to surge "squawk box" begins right now. good morning, chaos in iowa. results delayed after they found inconsistencies. >> bringing tesla's market cap higher than ibo, and lockheed. joining us to take a victory lap. the number of confirmed coronavirus cases has topped 20,000 we'll tell you how companies are coping and what you need to know if you plan to travel.

tuesday, february 4, 2020. "squawk box" begins right now. ♪ >> good morning. we are livhe marketsite in time square joe is out today joining us is michelle great to have you back >> it is a pleasure, thanks.>>ay strong green arrows across the board. the dow was up by 143 points yesterday. the decline on friday was down over 600 points. the dow future is up the nasdaq would open by