let's get a final check on the markets and what a run we're seeing this morning. dow futures are indicated up 500 points. nasdaq indicated up 130. the s&p up by 41. let's hand it over to "squawk on the street." we'll see you guys soon. ♪ >> good tuesday morning. welcome to squawk on street. i'm kyle along with jim at the new york stock exchange. equities are rallying around the world as china injects another 57 billion in market liquidity. tesla's pair bollic action continues today. europe's up about 1 1/2%.

the ten-year getting close to 1.6. and oil is increasing after a bear market on monday. stocks are set to open sharply higher as virus fears abate. china set to take additional steps to stabilize the economy. >> plus tesla shares skyrocketing jumping another 15% in morning. they're up more than 100% this year, buff course the question, is this meteor going to come back down to earth oo >> and the winner in iowa, democratic candidates remain in the dark about the timing of the iowa caucus results. we'll start with the markets as stocks set to extend yesterday's rally in a big way despite the concerns about the coronavirus. dow's on track to erase its year-to-date opens. w.h.o. says there's no evidence of mutation and you need close contact to contract the virus. >> i think this is unprecedented. china's injected -- i mean, this is just utmost fierce

intervention i've come across. but i think yesterday the cdc had a press conference. and it was a very good press conference. it was, you know, they said a lot of things about how it's a public health matter now in our country. not really a medical matter. because we've slowed it down. i think they were also gleeful without saying it that the president said, no more to people coming from china. so they can get their arms around it. and the press conference left you hope that, look, they do have a test. you had a feeling last friday that they didn't have a test. and that if you treat the people with the pneumonia with fluids, they're living. so, yeah, i mean, there was some good signs. by the way, on cdc they said that china's a disaster. they did not give you any hope about china. >> so if our market is reflecting optimism about the fact that, "a," it won't move quickly here, "b," it would be able to contain it and, "c," we'd all be able to survive even if we got it. >> right. >> all good. >> yeah.

>> the second largest economy in the world is shut down. >> yeah, well, there's going to be a percent -- this is what's interesting to me. i had thought that it would matter that i believe there's going to be a percent decline in the gdp of china. i did not think that we could go to all-time highs. >> wait. so the market that the point you believe is overlooking or willing to accept that decline with the idea that it will just bounce back once and if hopefully the virus is contained? >> that's what the markets say. when you shave a percentage of gdp, you think that the thing's going to be done in april, that, to me, is you're a little bullish. i mean, gees, that's kind of -- that's kind of hard. >> what was said on the air yesterday, the market believes liquidity can decouple us from fundamentals for a long time. >> the amount of liquidity that china is putting in the system is insane. >> they're lifting equity caps for insurers. >> yes, every stop to make

themselves look like you know what it's business as usual. it's impact our market. >> it's nos business as usual. they've closed ma cow fcau for weeks. >> but royal ka rcaribbean lovet because it's not as bad as we thought. >> and now apple says they're going to resume production on february 10th. >> i thought that was incredible. >> full china production february 10th. >> they were on friday saying, you know, over the weekend you got the email from apple saying, okay, look, guys, we're shutting down. and then we got, wow, we're back. so i think that there's -- what the heck happened that they could cordon this thing off? there isn't any sign in the world that says they've cordoned it to this one city. but people are -- >> you can argue either way the market reacts that it's overreacting or underreact, who

knows because you don't have the angs answers >> do you yo think it should go to all-time highs when a week ago the gdp growth was a lot lower than you now the >> liquidity in china, that's down. look, let's just -- if there's anyone -- i don't know if you guys feel like there was a bit of a collapse in the democratic party last night, but people hate him or like him, trump is good for the stock market. and i don't know if you stayed up to get the results like i did or the caucus, that was a pure thing. >> yeah, i guess we're still waiting. >> well, did you wait last night? >> no. >> why not >>wake me. wake me. >> yeah. >> over super tuesday, we'll stay up. >> but they collapsed like the niners.

>> yeah. >> and new hampshire, as we said, is a week from today. >> is it >> jim and david mentioned tesla. there's no stopping this name. does hit 900 in the premarket today. earlier on squawk, ron baron talked to the guys about how he sees it at a trillion dollars in revenue in ten years. >> tesla's going to be somewhere around $32 billion in revenues and i think, yes, that they're going to do $100 billion of revenues within four years. and i think they have potential for a trillion dollars in revenues within ten years. so basically you're looking at at the start of what is going to happen with tesla. this could be one of the largest companies in the whole world. >> so at a trillion, essentially gm, ford, chrysler daimler currently do 600 billion. you'd be talking 40% more than that. and they're 2% of the way there. >> i think you have to -- yeah. you take them with a grain of salt, but he's been saying for a long time this thing's going to go upwards. i think it's just a grain of

salt. >> he's been right. >> he's been right. >> it takes big positions long term. he's got the luxury of long-term capital. >> i keep going back to the conference call, which was a choice conference call, where he's making a joke about april having battery debt. what is he going unleash on battery? >> the potential for a trillion in revenues in a decade. >> that's a got. >> you're not talking about selling cars. you're talking about autonomous robots, fleets of taxis, battery technology that's advancing in ways that we can't even imagine. we're talking about solar roofs, i guess, i don't know. you're talking -- what else do they have? >> do you have any -- >> space. >> yeah, space maybe. >> space. >> maybe the thing will take off and go to space. >> versus -- >> space has rockets on it. >> but don't you think when you listen to that that fossil fuels won't do as well if -- [ laughter ] >> what? >> yes a, i don't think fossil

fuels will do as well. >> that matters. are you carbonatetive like i am? >> i try to be. >> how are your measuring your carbon. >> because i leave every single light on and don't care and my wife goes around and turns them off. >> we planted a million trees in our apartment and we're doing well. >> i've planted 400 trees. >> doesn't it use carbon bh you make the olive oil or no >> we tuesday with old fashion press. you sell it to the commune. we have a communism in italy. >> same as -- >> i am carbon negative. py planted more trees than you will ever plant in your life in the last two years. >> i'd like to see those trees, actually. i'm trying. >> they're nice. they're nice trees. >> paul's seen how carbon negative i am. >> guys, as for tesla, you and your carbon, news street does downgrade to negative. they have been the biggest bulls

on the street with street high targets. he's keeping 800 target unchanged. >> the 800. >> but does he say that a lot of this is -- >> it's just that what david mentioned that baron's like private equity. i think that there are a lot of funds in this thing that are like private equity. and it just means they're not going to sell. >> they're not, right. there's no sellers. >> where are the sellers >> there's mental buyers. but there's been no fund mental news that's changed the profile of this company in the last couple weeks while it's gone up 40%. >> i disagree. i think if you build a factory for -- in ten months in china. >> yeah. >> you can build a factory in nine months in germany. >> in berlin. even though they say it will take long they're. >> it won't. i don't think so. right in the heart of the bmw, right in the kisser of benz. >> so you think it's just them proving the critics wrong over and over again. >> beamer, benz, and tesla's going to pass them. >> okay. >> i think that's meaningful. plus they'll make a lot more money this year than they thought. >> that's true. >> if you wanted to --

>> i guess i'm saying since we heard from -- >> no. but this battery, everyone's wondering what national battery day is going to be like. i bet you it's on the same day as arbor day. >> national battery play >> what's the matter it's national battery day. i don't mean like duracell. >> i understand. >> what are you going to do? >> i'm going to hook myself up to a battery. >> you going to give yourself an electrical shock. >> yeah. >> let's move skblon leton. >> let's put a cap on tesla. >> you can't. i've been saying it's got to be twice gm and ford together. i'll reevaluate when it gets to that. i'll reevaluate when it gets to that. >> you want to see twice gm and f ford. >> when people said it's worth more than gm and ford, i said i'll feel like it's toppish when it's worth that twice. >> we're 20 minutes from the open. >> that's because people are

shorted. a billion three is all ready traited. >> why don't you get with the hedge funds that are short and see how they're doing. >> i know how they're doing. >> really? they had their lungs ripped out? >> they are they're getting completely crushed. many of them have been covered. >> yeah, by force. look, this is amazing. >> they shorted again. they're like this can't be true. >> they can't short it, you shouldn't short it. the sellers -- we've not gotten to the level where there's natural sellers. >> there's still 25 million shorts out. 5 million shares of shorts. >> what's their game plan? they better cover my national battery day. >> we're going to watch it and talk to be news street later in the show. along with that, joe of tesla who famously had his bear case at ten. >> he's the other -- he's the lost jonas brother. did you know that? >> and we'll talk a little bit about alphabet. let's make sure people know we're going to talk about the alphabet numbers. >> it's real. it's spectacular. it's real. >> they gave us cloud and the market disagrees with that. >> the market's clowns.

that was anne unbelievably goo- they basically gave you a roadmap that said, listen, cloud is going to be gigantic. youtube will be gigantic. >> they're well below what everybody estimated. youtube and cloud numbers were below and even the growth rates were below what people estimated. >> they just started. he has just started his magic at cloud. they just started charging for youtube. i didn't sense that other bets were going to kill -- >> ad revenue was a miss. c cal pex was way below. >> and up 36% is less than people anticipated. facebook, i don't know how many times larger than an ad base, was up 26%. even azure is growing faster. azure's growing faster than their cloud. >> so i mean listen to me and listen good, okay. do you remember when amazon broke out amazon web services

and you said to me, jim, this breakout is everything you didn't say the latter. but, i think that they broke it out so you have a path. and suddenly you don't have to just look at that depressing search number. so i think breaking it out is the beginning of the move. the stock i remind you was up 80 points yesterday, got ahead of this self. but i -- every single analyst raise price target. f.a.n.g. sought. >> the core business is larger than we thought as a percentage of the whole and it's not growing as fast as people thought. >> just you wait. cloud is just in its infancy. >> okay. i believe you. >> thomas is taking the world by storm, yu you juou just didn't easy >> that a big shift in the google narrative. we'll talk about it more. >> is anyone able to get thomas on >> i think you're working on it. >> i'm working on it. >> tom ford had him on. >> i'm sorry. >> as jim said, it's a rough start to the democratic primary season. we're awaiting the results from

last night's caucuses in iowa. kayla is there in des moines with the very latest. good morning. >> reporter: good morning, carl. it's 12 hours after we're expecting the first results to trick until from last night's caucuses. zero percent official results after a technical clutch in a new app that was supposed to securely and quickly transmit the results from 700 caucus sites so we could digest them and analyze them more quickly than possible. that's not the case now. the iowa democratic party says the results will be out later today after they're going through the paper trail double and trem checking that. both the standers campaign and the buttigieg campaign releasing their own internal data to claim victory. course it's impartial and imperfect data, but every candidate without a clear winner or loser here is trying to claim the victory for themselves. the biden campaign, which saw low turnout in some of the big city caucus sites fired a missive to the democratic party lamenting acute failures

statewide and demanding to see the results before they're out. but while these campaigns are hand ringing even as they're on the way to new hampshire, are the democratic voters here in iowa last night were clear in their priorities they wanted to back a candidate who could beat pruesident trump. 61% of caucusgoers felt that way compared to 31% who are voting on issues that was conducted by a poll conducted by nbc news. president trump got 97% support of gop caucus voters last night. >> a lot of obits being written about the caucuses today. we'll see what new hampshire brings in a week. we'll count down to the opening bell this morning. as we said, a lot of news to get to, including royal caribbean, clorox, and more when we come back. futures are fe. ckn mite. onir

stay restless with the icon that does the same. the new rx. crafted by lexus. lease the 2020 rx 350 for $419 a month for 36 months. experience amazing at your lexus dealer.

welcome back. let's get to our mad dash. 12 minutes before we get started with trading here at the new york stock exchange. ralph lauren, current gains in the quarter, 2%. why is that --

>> that's a very good number. you're talking about elevated brands. david, one of the knocks in this company, it's amazing, is that they never have enough china. well, guess what they don't have much china. and they've reduced their -- they used to make much more in china, now they're down to 20%. here's what i think is happening. they have an elevated brand strategy. and they have a way to reach people that want that. it's instagram and it's a very successful campaign on snap. i keep hearing good campaign snap, good campaign snap. i think snap could be really good here. but this is just a blocking and tackling turn around by patrice. and when i go over the numbers, they've been able to put through price increases on elevated brands. very few people have been able to do price increases. they are seeing, i would say, just a consistent pattern of in that key holiday season of doing business day by day. they are, let's just put it as

it is. david, they're the only guy i know that really had good numbers for -- i mean, i would say exceptional numbers for the holiday. that is just hard to do. so this elgreevated brand strat may be right one. i feel personally that maybe i ought to check this stuff out again. i wear purple label and black label for a while and, i don't know, time to go back in the campaigns are good. you should check the campaigns out. >> i will. adjusted operating income of $246 million >> that's really good. remember -- >> that's when you adjust for 21 million -- >> patrice is doing a really good job, and that's what it's about. he's doing a great job. >> we'll keep an eye on it. and a lot of other stocks. we are on track for what will be a very strong open, at least if you're long in the stock market. "squawk on the street's" right back. it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board.

excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪ (sensethe lack of control when iover my businessai, made me a little intense. but now quickbooks helps me get paid, manage cash flow, and run payroll. and now i'm back on top...

with koala kai. (vo) save over 40 hours a month with intuit quickbooks. when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me.

futures look breathtakingly strong here as equities are rallying all around the world, especially in europe. you've got some good headlines on the virus relatively speaking, and some liquidity. opening bell's in about seven minutes. as a reminder you can always watch us live on the go on the cnbc app. do not go away.

oh, hi, samantha. you look more like a heather. do you ever get that? it's nice to finally meet you in person. you're pete nocchio? oh, the pic? that was actually a professional headshot. i'm sure that's it, yeah. i, uh, i think i've lost a few pounds recently too. i'm actually doing a juice cleanse. wait! you don't... (glass breaking) (gasp) ah! oh...! with geico, the savings keep on going. just like this sequel. 15 minutes could save you 15% or more on car insurance.

you're watching cnbc "squawk on the street" live from the financial capital of the world. opening bell in just about four minutes, as we said, futures look remarkably strong here as we're getting into some political season. we're waiting for word from the iowa democrats they do say they're going to have results for us now sometime today. jim, and of course the state of the union tonight where the ft says the president will out to a blue collar boom. >> that's the word is that it's just going to be a reagan-like

speech. it will be about the triumph of the american working person. does that work i don't know. everybody -- there's just a lot of talk among the democrats i know about how very soon the impeachment will be over and unfettered, unbound president will be very different from this current president. and so this is just a 24-hour period where i think there's going to be a change in the narrative of the presidency. hate him or like him, david. narrative changes. >> still early days in the nominating process. since we cannot just sort of forget iowa, yeah. >> oh, what a debady bach cal. >> it's just a very strange way to handle politics and

elections. by the way there are is all backed up on paper, it's more of the iowa dems saying a coding issue. >> does it make it so bloomberg is the winner. >> it does say he's looking like the smartest democrat in the room. >> he was in the super bowl. advertisements -- >> his tax plan's pretty -- >> the 5 tril? >> pretty tra conian. his cap gains. >> i talked to a bunch of business people this weekend when i was at the super bowl. they're still talking about assault. they're talking about the exodus, maybe because there are two bowls in florida. kpot kp kpod dus kpod exodus matters. >> some permanent dealing wiopl end of life taxes, don't exist

in florida, you're dealing with that here. but it's going to the lack of assault deduction. it w salt desuction ductioduction. bloomberg not getting rid of that cap. biden's plan would. >> biden looked like -- i thought he was coming in like 11%, but then i realized that the numbers are meaningless. if you go back and do the companies that reported this morning, that's certainly bullish. there's not many that are negative. you know, nxp reported last night and they had some numbers that were really just really good for mobile. not that good for auto and not that good for industrial they reported a number that's a "b" and they gave you a negative guidance but people are focused on the "b." royal caribbean, people felt that was going to be a disaster, that was really good. you're kind of looking -- if you're looking for something that's bad in earnings, it's hard to find.

[ cheers and applause >> certainly the case today. we'll get to some of those names in more detail. let's get the opening bell here and the s&p 500 and the cnbc realtime exchange and the big board, it's jacobs and international technical professional services firm celebrating its 30th anniversary at the p at the nasdaq it's reynolds consumer celebrating its recent ipo. more than a million dollars. consumer names are in favor. [ bell ringing ]. >> and the kitchen names in favor. and one of the ones that i would tell you, i have felt that i was worried my -- clorox. i felt that there was a chance that people wouldn't like it because they did not have great organic growth. but, you know, people saying that's okay too. colgate keeps going higher. you know, honestly, if we kwo just talkabout the number and the earnings in the last few -- last -- yesterday and today, there are no misses.

>> alphabet was not a good number. >> i gave you the correct narrative about what's going to happen. >> you did, didn't you >> yes, did i. >> we're not going with that we're missing earnings beats -- missing the five-year average. we're not going to pretend that's not happening >> no. i mean, this last -- this week's are very good. i want to give you -- i'm going to give you alphabet. i'll give you that for the moment. >> it did miss expectations. >> for the moment i'm giving it to now >> what they broke out, which meant the investors are quite happy about and the cell site analysts who follow the company who are looking to refine their model, they're happier now because they know youtube and the growth right there. even though the revenue number was lower. they now cloud even though the revenue lower was number. then know the growth rate so they're happy about that. >> they love that. >> but, the numbers were not. >> why don't you just wait. ralph lauren up 11. >> okay. >> 11 points for a company that has a 4% comp, that's far better

than a lot of the other comps. and that is an important statistic, because it says you can get it right. the consumer's not dead. consumer is alive. it's alive. >> alive. so would you rather -- i mean twror names today, clorox or kumettes. >> you're not buying the cyclical story >> it's not because i didn't see a single caterpillar, maybe one of their cranes. but i jft find i don't want to be levered tothat -- that's th gdp going down. clorox kills everything. it's never -- i was on it. when i was a homicide reporter and murder reporter and death reporter, i covered a train wreck of chlorine gas. and if you went through it with your car, you die. and you dined substantially. color rax kills everything and

everyone. clorox didn't make that, that was chlorine -- >> well chlorine, not clorox. >> clorox, if you wipe, david. >> yes. >> i don't know what you use to wipe. i use clorox to wipe. >> we use those things right here, the bleach things. >> i can't remember -- >> we're all going to become -- every -- but we're going to be too sterile. aren't you supposed to have some microbes on your skin to be able to -- >> are you just contrary to everything i say >> i try to be. sometimes agree with you but it's, a. >> do you have a mask? >> no. >> do you have surgical gloves >> no, but i do have glove gloves. >> i'm not geg near htting near i've got all three because i was traveling and i just, you know, if a person sneezing next to me, i'm sorry, i'm not going to be -- >> listen, a man of your age, a strong wind could take you out. you know. i get it. >> assuming jim survives. >> wham i jack bennie.

>> i'm here for you. >> jim lives long enough, he'll see what happens to tesla at the end of the day. it's now security times two. ron bharn an interesting take on the economics and backing up what jonas said, portions like margins in china, that they've learned how to squeeze more profit out of the given car over there. >> yes. that factory i keep coming back to that, take 18 months for a conventional company to make that factory and the yield wouldn't initially that be good. it's good. >> he pushes people hard. >> he does. >> he does. >> remember when we thought that people working for him, they thought it was something matter with the company. no, he just makes you -- he works you to death. >> yeah, he works people very hard. >> he does. >> that's something the companies we don't talk about, some of his private efforts as well. it doesn't matter across the board. >> sing his songwriting. >> no, he pushes everybody who works at his organizations very

hard. >> he does. i don't want to work for him. >> he pushes himself harder than anybody. >> doesn't he? >> i would think so. >> yes, obviously, during that period where it looked like he was having some issues, he was sleeping. the cot. the cot at the office is always there. the cot. yeah. the cot. >> that's a bad thing to have a cot in the office? >> to sleep in the office with a cot it shows that you're maybe taking it a little too seriously versus, say, david salmon who spins records? >> that's nice. >> yeah. >> never had an office so i haven't had to worry about a cot. >> all right. as you can see, we've erased obviously the selloff that we've been handling in the last several days. jim, david mentioned casinos where traffic's off 80% and visas from the mainland have been cut off. american today says it's suspending flights from hong kong to l.a. and dallas on a lask demand, not because of any restriction of any kind. >> well, wen is up 2 bucks.

these are all kind of surreal. the airlines, those were very profitable roots. i don't think the airlines are big stocks, but think -- look, there are things that -- here's one that's important. so yesterday we felt that starbucks was a disaster, right? in the morning. and now starbucks support three from where it was. nothing's changed except for the fact we do know that kevin johnson has decided that if there's a long line at an hms in the airport, they can open -- they'll open a competitor. but otherwise, starbucks is the same company. >> right. maybe it's as simple as people sold some stocks and then had the proceeds and realized the ten-year is 1.56 >> and they want to get -- >> and they're like what am i going to do? >> where are they going to put the money? it's not viableny where else. but you've got check the cdc.org because they've changed their

view they have changed their view. and that's a big change. i felt very -- i was very uncertain and unsettled when tony last week was saying negatives. tony is the never -- he doesn't mince words, but the press conference yesterday was a very positive one. very positive. >> yeah. it's such an unknown. >> yeah. >> scott gottlieb was on with us last night on the special report where he says wee small hepidem phoenix, let's say. >> i'm concerned about it. i'm listening to a man, scott gottlieb, who is saying these things. and i don't think you want to come in 100% wrong when data has it. could be wrong i guess so. cdc moved away from -- they were saying let's clarify, our test does work. when you read the press

conference last week, they thought the test didn't work. >> right. >> their test is accurate. that matters. just they have to keep testing, that's something that they didn't realize. >> shares of our parent company are up about 2% on upgrade from moffatt nath on thanson. right after they reported earnings. then the conference call turned things around dramatically for comcast. you can see it there at the end of the chart had they talked about losing for subscribers in terms of video subscribers in 2020, first quarter than they had previously. and it aroused concern. frankly for the entire complex of those who rely on still the cable ecosystem for the bulk of their revenues, all of them came down. fox, viacom, discovery, on and on. but this morning an upgrade based on multiples saying, you know what? if this thing was a pure play cable company you'd get more respect, held back by nbc u, which we're a part of, and sky.

and that if you just apply the 12 multiple, the charter debts to the cable business at comcast, you're really looking at the other businesses being valued at something like three times -- which does appear to be rather low. that's the best way i could wrap it up. >> i like the fact they started by saying over the past few years eve been labeled by comcast critics or worse haters. so for them to put the piece out is worth a couple of bucks. but this was a very important piece, because, as they say, enough is enough. i want to just point out when i read their research, lisa ellis too, nathanson. >> yes. >> it's weird. it's like they do readable research and you get to it and they're telling a story. and it's really pretty good. >> i thought it was meaningful. >> along those industrials you mentioned, heavy auto gets mentioned.

it's almost as if people decided an auto's okay. i think that's premature, but who am i >> i don't know. atlanta fed is calling for q1 to be 2.9. you know what gold man hman is about the current conditions. >> that was bull zblish yeish. >> yeah. that's not what people are telling me about kmien ska's growth. >> i think elon musk is feeling safe on that comp. it had to hit 100 billion mark in cap for a period of time. it had to be an average over a period of time for him to collect another $360 million worth in terms of stock. now at $157 billion market value. you've got to believe that he's looking pretty good. >> yeah. >> solid on that comp. >> yeah. >> which when they awarded it at the time, it seemed like a dream. >> didn't it >> well, didn't it

it was so far above the idea of 100 billion market value let alone 157 billion which is where tesla shares are. >> she's there so close. if you add gm and ford are fotor and multiply it by two, they're almost there. >> almost where. >> tesla's almost bigger if you add gm and ford together and double them. >> and double them. >> and double them. well, they're doing better at tesla than ford and gm, that's pretty much the case. >> so you're basically looking at it as an industry is going through wholesale change. >> yeah. >> and the leading -- the tip of the spear of that change, that gives the valuation as reasonable >> whole countries keep talking about how you can have carbon engines. coal countries. and so the tide is -- >> how much has tesla benefitted from what we've been talking about every day? i don't want today to be different. the movement and flow of assets into esg funds

appearance it's an automatic. it's got to be at the top of the list. i don't know if it's a beneficiary at all. >> i think it is it's the way your portfolio can become green. >> right. >> you can green wash. that's a way to -- listen, i own tesla. you don't think i'm green? i own tesla. we own chevron. well i own tesla. by the way, they're still leaving exxon. >> beyond me. >> beyond me, that counts as esg. >> i mean, we've known smoking kills you for what 60 years >> yes. >> and those stocks still have rich market caps. >> that's true. >> they haven't gone away. >> no they haven't gone away. but i think they're twilight. i don't want to buy a company who's as sket set is wasted. particularly related to health.

i thinkal t altra has done thins wrong. >> you say take me out ten, 15 years, it's not looking good. >> why would you want something -- >> for getting the fact that there are assets that are now off-limits to investing in them. >> i just think that that larry -- when larry fink said coal, isn't that -- isn't the next thing oil and gas bp reported an -- this is the last one, we were trying to sell everything fossil. bp reported a great number and released the dividends. here it tums comr comes, quick, three four bucks. no, it probably closed down. >> meanwhile japan is putting in 22 new coal fired plants because of the fukushima nuclear disaster. >> get with the program. >> instead of nuclear power plants. >> it's going fob good fto be gr railroads to sent coal over there. >> alpha internet bet is no lonr

trillion dollar company. >> you're going rub it in my face >> down to three now. we're up 390 and we're book to 3288. >> four hundred points in the dow. united health and apple doing really well overall for the markets. but this is a very proud rally. let me show outsectors that are moving here. we have china play mchi really big here. semiconductors moving, bank stocks moving, even energy are up today. utilities, finally, which is the biggest mover year-to-date on the down side here. good numbers today. jim was mentioning clorox earlier, great numbers. good guidance from clorox. cummins did talk about the slower weaker outlook. this is the theme we've seen recently. they've had a rough month overall, nice to see them on the upside. halfway through earnings season right now.

let's call it haves and have knots nots. you have the mega cap names. they've been seeing their earnings estimates for the first quarter, that's what i'm interested in, generally been rising. that's helped keep the indexes up. and then there's a group, deep cyclicals, generally their numbers have been coming down. take a look, fedex, maybe a separate issue there. but black & decker, ge, schlumberger, the energy group, their numbers are coming down. sometimes other issues like fedex have had broader issues overall here. here's where we stand right now. halfway through earning seasons for the fourth quarter. we're going to be up for the fourth quarter. that number's been improving a little bit. this number's been coming down. we were almost up 7% a month ago for the first quarter numbers. that's been coming down a little bit more aggressively and that's largely dupe largely due to concerns over the coronavirus. hyundai is halting droproductioi

south korea. china beer sales have been hit as a result of that. pandora, the jewelry company, not the music company, stores are closing in china and they've seen a precipitous decline in sales over there. and swatch just announced that their watch fair in zur risich been canceled. but if you look at the stocks, we've got a global rally going on it's powerful. only pandora is to the down side. the other side, you would think this is not good news for hyundai, is still trading put we've had major hits in asia in the last couple trading weeks. still an evolving story this whole coronavirus issue. back to you. rick santelli in clig. good morning, rick. >> good morning, carl. listen, i'm not a doctor, i can't tell you the nuances of the coronavirus. but what i can tell you is that many are afraid to jump in when markets are moving to issues

they can't wrap their arms around. nobody can really wrap their arms around. based on the way markets are trading yesterday and today, at least from the interest rate complex, look for some higher rates. in not only the ones we've seen. look at a two-day of two year. right now the entire curve is roughly a parallel shift. we're basically up 4 to 5 basis points on our maturities. maybe they'll differentiate as the day goes on. but the rate's curve is going to seen it which means they move higher faster. look at the ten-year, all the information you need right there. we did take out that 153 low close from early october. day before yesterday we closed at 1.51. but we didn't take out the early september low close, the cycle low close, right around 1.46. why is that important? open the chart up back to 2012. we had the spike in july. july of 2016. now we have this consolidation. but when you look at it altogether, looks like a triple bottom.

treasuries hate triple bottoms. look for rates to rally, go higher off of this formation, but it's a strange formation and traders aren't going to trust it. look at bunds overseas. the yields look softer meaning they could get more negative but they have firmed up like all global sovereigns and stocks have. finally, in front of the weekend with coronavirus, many were nervous, especially with european curns volatility so low they shifted their longs over there. but not to be this week's. matter of fact, as it sits now as you see on this chart, we are not far away from the high clofs 2020, which is 98.01. carl, david, jim, back to you. >> all right, rick, thank you very much. got to take a moment here to look at tesla once again. session highs 917. one month ago this stock was

$436. and you can do the math. >> it's -- it's a phenomena. a lot of people get bettibettin it. whoever owns this stock is just not willing to part with it. there's just no level where sellers come out. i mean, we used to think trading, okay, if this is the level, find me -- are there sellers at 1,000 sellers at 1100? if there's no sellers, the stock goes up whether it's bulk or not. >> it's market cap is not that far off from chevron's now he we were kidding about it, exxon i think he was talk about, but now tesla approaching 170 billion. >> which one can be carbon neutral? who you like to compare the earnings of those two companies? >> david, david, david. stop being such a small thinker. >> it's incredible. >> is it >> when do you short it?

>> you don't short a company where all the stock is already, you know, it's the largest -- >> it is short. >> that was a mistake. let's admit it it. >> it f it were in the s&p, it would be in the top 50. but it's not. your general rule of ringing the register ton a 20% gain, any 20% gain -- ringing th strernlg register on a 20% gain. >> this one is different the amount of money he's going to be making if he delivers could be insanely profitable that's what happens. insanely profitable. yes. oh, my god, you're eyebrows. for the podcast people, david just lifted his eyebrows to make fun of me. okay, podcasters. >> i need a gif of that right there. we're up 440, best gain since october. we're about less than 40 points away from another s&p all-time

high don't go away. imagine traveling hassle-free 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.

dow heating up, extremely good led by cyclical names like caterpillar. dow top five with nike tesla, top0 4s&p name if it were in the s&p 500. we're back in a minute or bringing some of that flavor back home. that's room for possibility. ♪ let's get to living

saving for ava's college. being able to retire on our terms. taking care of dad. why ameriprise financial? my advisor cares about my personal goals. he gives us comprehensive advice. i feel prepared for what's expected in life and even what's not. she helps us feel confident. we know our financial future is secure. with the right financial advice, life can be brilliant. ameriprise financial. high protein low sugar tastes great! high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes

jim, what's on mad tonight. >> down a couple bucks, centene. then chipotle reports tonight. remember, the price of guac went down chipotle. >> chipotle. >> you probably have chipotle. >> i have once or twice. >> we have it every friday right through thick and thin, the worst part of the virus, i was there. >> you were at chipotle. >> your 18 month window. >> thank you thank you very much. >> really did. >> see you at 6:00 on "mad money." >> tonight. >> tonight at 7:00 p.m. >> cdc. >> more coming up on tesla's record run and market rally now the best day for the dow since june 4th (soft music)

- did yo tatought gold in 2005 and even now many experts predict the next gold rush is just beginning. so don't wait another day. physical coins are easy to buy and sell, and one of the best ways to protect your life savings from the next financial meltdown. today, the us money reserve is releasing official gold american eagle coins at cost. for the incredible price of only $154.00 each. these gold american eagles are official gold coins of the united states, and are being sold for only $154.00 each.

pick up the phone and call america's gold authority us money reserve, with nearly two decades in business, over $1 billion in transactions, and more than 500,000 clients worldwide, us money reserve is one of the most dependable gold distributors in america. today, the us money reserve is releasing official gold american eagle coins at cost for the incredible price of only $154.00 each. these government issued gold coins are official us legal tender, made from solid gold, mined here in america, and fully back by the united states government, for their gold weight, purity, and content. do not delay. call now to purchase your gold american eagles, for the amazing price of only $154.00 each. gold is now on sale at prices unseen in years, and this year could be one of the greatest gold buying opportunities of all time.

call now while vault inventory remains, and as one of the largest us gold coin distributors in the country, us money reserve has proudly served 100s of 1,000s of clients worldwide. don't wait another minute. call now to purchase 1/10th ounce gold american eagles for the amazing price of only $154.00 each. welcome back to "squawk on the street," rick santelli, live with the cme group, breaking news, reads for factory orders, final number for durables, factory orders up 1.8 and that's

much better than expectations but we lost .5 to down .7 to downtown 1.2 you take out transportation up .6, very solid read only lost .1 owner .3 to .2 money ball, final read on durable goods. final read means take the mid month away up 2.4 that is quite a solid number and it is 2.4 in the rearview mirror final read is the same take out transportation, down .1, also the same as the mid month read finally if we look at the very important capital gain orders nondefense aircraft for business spending, it goes from minus .9 to minus .8, .1 wider to the final read the problem with that is minus .8 is still the worst number since april of this year it really underscores the

nervousness about not ramping up on capital spending especially, of course, after the trade agreement phase one was signed but coronavirus takes some of that away. finally shipments versus orders. shipments on the final read down .3, .1 better mid month look all things considered, the data is better than expected but durable goods, of course, could have been better than mid month. we do see yields back to 160 in tens. >> a lot of good information, rick santelli thank you. welcome to "squawk box." i'm carl quintanilla the market told us a big open and we did, dow up 435, biggest gain since june of last year as we weighgs a and tesla takes attention. this big market rally, dow and s&p seeing biggest gain since october of last year

despite coronavirus. >> symptom prices doubled since the beginning of the year, now trading 920 for the first time. >> and chaos at the iowa caucuses we're going to take you live to des moines as we are still awaiting the results from last night's contest. >> we'll begin the hour, though, with the latest on the coronavirus with a total number of cases crossing 20,000 our eunice live in beijing with a look at how companies are operating during the outbreak. eunice. >> reporter: thanks so much, sara the death rate has been released by health officials here for the very first time. for wuhan, the epicenter of the outbreak, the fatality rate is 4.9%, nationwide 2.1%, but officials today were playing down this number saying that they believe the rate is going to continue to drop because authorities have eased bed shortage there as you said, i'm at a delivery station for jd.com, the

retailing giant, one of many companies that have been having trouble operating under these types of conditions. you're talking travel restrictions also the concern about public health at this station alone, they have seen a surge in online orders because so many people are staying at home. so it's been a jump of 30% here, about 200 deliveries that each courier makes to the residential area every single day. and the way they are able to accommodate all this, jd says it's because they have flexibility in their system. great technology, high tech,n ar network of warehouses and their distribution system. that's allowed them to continue to operate in these conditions even in the most affected areas of wuhan they have been able to create a

channel that is special for wuhan and taking donations even from other organizations they said they had 600 requests as of february 2nd in order to expedite the delivery of medical supplies now, of course they have to take precautions as do many companies here for wuhan specifically they said couriers dressed in hazmat they have goggles and gloves and masks. most of delivery people in the rest of the country also taking precautions with masks and temperature checks there are even more signs, though, that the conditions here for business are getting more strained for example, a china development firm, a high level led by government in the past they had keynote speakers such as tim cook. it's meant to attract a lot of international business they announced today they are postponing their march event also the canton fair, which is

huge and important, a fair for many american businesses who want to try to find chinese suppliers. the venue says they are now suspending all exhibitions, though, the canton fair itself hasn't confirmed whether or not they are going to call off the fair which is scheduled for april. guys. >> our eunice yoon in beijing. so much more information, eunice, thank you for that stocks are opening strong as markets continue recovery rally. libby can't rely with us post 9 as well as global economics. good to have you everything eunice said, the markets are assuming this is going to be temporary and the snap back will be strong is there any reason to doubt that >> not at all. i think markets are looking at the backdrop we were in. we got global pmis data yesterday and that was very strong we had a one-point plus jump in

global headline pmi and 1.9 percentage jump in new orders, subindex, more forward-looking pretty good data in terms of what's going on in the global economy before we get this now as we're getting some information, in control, markets looking ahead and saying you'll probably get resumption of recovery as long as it's controlled. >> that has big political implications when it plays out iowa, are you willing to set that aside as a traditional debacle. >> caucuses, i doubt we'll see them again in the 2024 cycle what we've been talking about with our clients about iowa and new hampshire, even though they capture the imagination from a delegates perspective they really don't matter. they can matter for momentum and fundraising perspective but what does matter from investments

market perspective, march 3rd. by march 3rd, 30% of the delegates will be decided. we should have a very good idea of who the nominee is or who the front-runners are. if we don't, we would say the chance of a broker convention increase not many people talking about ro broker convention. we think caucus is messy, a broker would be. >> in terms of what they are expecting who the democratic nominee to be. >> i think if the predictive markets are any indication, i think there is concern that a progressive left candidate would be the nominee i think it's way too early to tell you know, the iowa caucus, when we get the results, that will be the first indication we'll see whether pete buttigieg, how well he did, whether joe biden can remain in the race i think the point here from a market perspective, it's way too early days we would fade all the prediction markets at this point. >> you guys have been sort of

less upbeat i think on the outlook for the economy than some of your fellow wall street peers. do you think that's going to factor into the election >> probably not because i think we're not really forecasting the economy to be that bad that it weighs on the politics at this point in time. we from our public policy analyst team's perspective, economy will matter but not so much unless we are really in bad shape. i think to the extent we're expecting regional growth to be around 1.8%, it should be less of a concern. >> are interest rates telling us anything we saw the yield move up slightly after we got those numbers from rick but we're still 1.6 on the ten-year. >> interest rates are telling us there is a concern on outlook with developments. remember, the starting point of global growth was 2.9% in the fourth quarter, which is pretty much close to the recession mark of 2.5% of the starting point was weak then if you have doubts on the recovery that's what the rate

markets were actually worried about. >> libby, i'm curious, back to politics for a second. as you do and i do when you spend your time on the phone or meeting or talking to people in new york in the business community bloomberg's name comes up a lot his strategy is focused on what you talked about, super tuesday. is he helped at all by this disarray in iowa, and do his poll numbers moving up mean anything of significance for him? >> yeah. i think this is a win for bloomberg, especially if the early indications are true that vice president biden did not do as well as expected. so this absolutely creates a wider lane for former mayor bloomberg. however, and this is again talking to our clients, to get the nomination, it's just a simple math question you just need a simple majority of the delegates as long as you have a crowded field, there is a chance that no one candidate is able to secure the nomination

again, that would force a blowered convention. in that case, it may actually help bloomberg bloomberg may be helped by superdelegates that cast a vote. bottom line here is this underscores that the race is wide open for the democratic nomination i think from a market's perspective to make any sort of investment decisions or position changes based on early indications, it's just premature. >> are you expecting anything as it relates to, i don't know, economic policy or things wall street should care about out of the state of the union tonight >> i think president trump will take this opportunity to do a victory lap. he'll talk about the strong economy. we would agree with morgan stanley from a pimco perspective that things are slowing but are still manageable i think the president will be able to spin this as victory from a trade perspective, usmca, phase one trade deal he'll talk about increase in government spending. so i think he'll use this opportunity as sort of a victory

lap, rehash kind of his greatest hits we're not expecting from a market's perspective anything too new. the only exception to that is we might get some indication of how they are thinking about phase two. we're not optimistic you see a phase two or traction on phase two in the u.s. before the election but we may get indication from that. >> china did say overpass they don't expect a virus to impede their ability to meet phase one obligations or commitments any reason to think why they wouldn't be able to? if they didn't, how would the u.s. respond >> i think it depends how long it lasts to the extent maybe two months disruption, then it should be possible to fulfill terms. if it really drags into four to six months, they will have to come back to the u.s. and say this is difficult for us execute. >> and would we hit them or help them. >> from pimco's perspective, especially as it relates to the agriculture commitments, you're talking about $40 billion of purchases every year, $25

billion was this maximum historically that delta might be hard to make up given sort of the dynamics in china. so we already thought these were as operational numbers to begin with this makes it maybe more difficult for them to attain. >> does this make the fed cut rates this year, chetan? when does that happen? >> no, at this point in time it's too early to call for a rate cut from the fed. you heard in the interviewoon tv channel, one to two quarter disruption you shouldn't call for a rate cut at this point in time, maybe one quarter. if you get evidence of this being long lasting, then raise the question of rate cuts but at this point, no. >> chetan, libby, thank you. >> let's move to tesla continuing that -- strong start doesn't put it in perspective. stock price up 114% since the beginning of the year. that's roughly a month of trading. phil, it's only up 15% today

what's the problem >> only, david when you look at shares of tesla, up 15% today, what's jefr looked by people is the amount of volume in tesla shares traded bob pisani told me in the first hour of trading, not even first hour, less than an hour of trading, when we're seeing is the amount of volume we see in an entire day right now, about 18 million shares. yesterday the trading volume was three times greater than average. that's elevated within the last month. so clearly you've got a lot of institutional funds, hedge funds that are moving into the stock this is not just retail investors that are pushing shares of tesla over $900 a share. earlier today on "squawk box" we heard from long time bull about his belief for this company and this stock to go far higher. >> what's it going to be worth >> i mean, gee, i can't see how -- of course i can see, but

my idea is that in 10 years, this is going to be at least a trillion dollars in revenues and nowhere near ended at that point in time. a lot of growth opportunities going forward. >> this is one of my favorite charts to take a look at tesla's market cap versus big three. it was interesting, maybe two weeks, three weeks ago when we said tesla was worth more than the big three in terms of market cap combined, now they have blown it away, $262 billion market cap, by the way, up $80 billion in the last couple of weeks. $80 billion last couple of weeks. speaking of the big three, don't forget we hear earnings after the third quarter of the bell. look what that stock has done. i had somebody ask me, what do you think, is ford one of those stocks that can take off relative to tesla, it's done nothing. ford versus tesla over the last three months, unbelievable

bottom line is this, you're seeing a lot of big funds and big money moving into tesla right now. >> phil, of course, ron baron has been a longtime owner of tesla shares that trillion dollars in potential revenues he talked about in a decade, let's step back for a minute. forget valuation on current numbers on tesla, because it's through the roof, of course. what would it take or what are the businesses under development at tesla you could imagine covering the companies you have, what would contribute to that? >> you would need to see solar roof take off, power generation take off, in addition to electric vehicle sales take off. just for some point of reference, david, let's take a company like general motors. in one of the years where it has really strong volume, let's go back maybe three or four years when it had its record profitability. by the way, they report tomorrow, and they are going to likely set a pretty high benchmark for what they are expecting this year, in terms of

profitability in north america and china. you take a look at the global revenue, just revenue, about 38, $39 billion. in a year they were selling maybe 10 million cars. for ron baron to say you could see tesla getting up into that trillion dollar range, you would have to see a number of businesses just explode. >> economists, too. >> when people ask you what's the why here, why the sudden acceleration for the stock >> basically, and i've said this a couple of times sara, on air if you believe we're at an inflection point with electric vehicles, from here over the next five years or ten years this market is going to take off, who is best positioned to do that? right now it is tesla hands down do yourself a favor, go out and ask people if you're not buying a tesla, what other electric vehicle are you buying you can't probably name three

others it's not a developed market now. it could be in three, four, five year right now for the foreseeable next years, tesla is the name when it comes to electric vehicles. >> may be the dumb fossil fuel trade. thank you. we will be watching the stock. meantime we mentioned chaos at the iowa caucuses. kayla live in des moines as we're all still awaiting the officials results from last night's contest. >> no results but we do have an explanation for what happened. in a statement released last hour by iowa democratic party, they said results coming in via the app and via the paper were inconsistent early on so they launched an investigation. this is how the iowa democratic party describes it they say, "while the app was recording data accurately, it was reporting out only partial data we have determined this was due to a coding issue in the reporting system the issue was identified and fixed.

the application's reporting issue did not impact the ability of precinct chairs to report data accurately. so you see in just that part of the statement going to great lengths to enforce that there is accurately behind these decisions and that the final results that will be released, whenever they are released, will be accurate. perhaps in anticipation of a challenge from one or more candidates once these final results are released but in lieu of an official winner, how is how the slate of candidates responded overnight. >> i have a good feeling we're going to be doing very, very well here in iowa. >> tauonight an improbable hope became an undeniable reality. >> it's going to be close. we feel good about where we are. >> it is too close to call, so i'm just going to tell you what i do know -- >> you won >> whoever does win won't get that massive momentum boost that comes from a first place finish

in iowa. the race will now move to new hampshire as it already has where senator bernie sanders has a home field advantage, then the race will follow in nevada, south carolina, super tuesday on march 3rd. the first race where michael bloomberg will be on the ballot. political strategists in iowa, new hampshire and washington, d.c., say if joe biden does not perform, if he comes in one of these lower tier finishes, you could see a path carved for michael bloomberg on the moderate side to capture a good portion of that democratic support. guys. >> what a night, kayla our kayla tausche in des moines. thank you. still to come, thelast nam to report. we'll tell you why alphabet shares are under pressure after beating estimates last night quick programming note, do not miss a special report on coronavirus outbreak right here on cnbc 7:00 p.m. eastern time dow up 415 we're back in a moment

alphabet shares under pressure after breaking out numbers for youtube and cloud for the first time josh out west and has those numbers for us looks like some recovery after opening bell but back down 4%. >> that's exactly right. this earnings report was alphabet's first and sundar pichai was promoted to ceo back in early december. one question the street had, would his promotion mean more transparency at the search giant and turns out it does. in a surprise move alphabet

reviewing new financial metrics saying in q4 ad revenue climbed, google cloud revenue grew to $2.6 billion notably the company didn't provide what rival amazon does for its cloud business, profitability numbers. still analysts clearly pleased with improving disclosure. pichai talked about his new role and how he's managing alphabet and where he sees opportunity. >> always taking long-term view investing in computer technology the application of artificial intelligence and computing and move to the cloud underline our investments across google and our other alphabet companies. >> however, while alphabet lifted the curtain on businesses, its weaker than expected performance is what's taking center stage. the company beating on the bottom line and revenue did jump 17% but that was not good enough

for investors that had piled into the name. heading into this report, remember, that stock surged 45% since its june low on the call executives emphasizing healthy growth and search, youtube and cloud some offset by decline in hardware revenue. another concern for some, both head count and capital expenditures expected to increase in 2020 sara, back to you. >> all right, thank you. as we head to break, take a look at top performing stocks leading the dow's rally today. nike is on top again up 3% initiating outperformed price target after a rally all 30 dow stocks are higher up 428 on the overall average a reminder, you can always watch us live on the go on cnbc app. download it today. "squawk on the street" will be right back ♪

♪ ♪ ♪

time for etf spotlight today we're looking at spider retail ticker xrt. it's in negative territory so far this year but recooping some of its losses. ralph lauren is today's top

performer in s&p 500 thanks to better than expected quarterly results. the stock, it was last trading up about 9% after the open we'll pull it up for you guys, the story with ralph lauren, almost 10% higher. it's a turnaround story. the ceo for about two years, came from procter & gamble's gillette the strength, they had a good holiday season, 2% comps more than double what analysts were expecting on average the only weak spot was wholesale in north america, which is a department store story more than anything else. outer wear did well. doing less promos, charging higher prices. they are so-called elevating their brand which means people are trading up from cotton to cashmere cable knit sweaters that has been a pretty successful strategies. you see it in the margins and sales growth. >> we know exposure to malls, exposure to department stores, implications for what macy's may say as it faces investors. >> down the american wholesale number that was the weak number

what these stores are doing, i would include a lot of nikes and adidas they are going directly to consumer and they are having more success at it they can control pricing and reinvest in brands, strategic price increases. that's really the story behind the strength. >> an end run around department stores really. >> it remains a weak spot. >> watch it. it's a big gain for a name that had troubles in the past year. let's get a news update. sue herera. >> hello, carl, hello,ern. here is what's happening at this hour a stampede at a primary school in kenya after students let out to go home killed 14 students and injured 39 others. an investigation is under way. iran's judiciary spokesman says an iranian man accused of spying for the u.s. will be executed soon. he's accused of sharing details

of the country's nuclear program with the cia he did not elaborate any further on what exactly the man was accused of doing nor on his age or background. british prime minister boris johnson and famed naturalist atten borough speaking about climate change they met with the children at science museum. >> we're trying to get people focusing on what this country is doing to tackle climate change and how to reduce co2 emissions, which is our understanding are basically swaddling the planet. >> you are up to date. that's the news update this hour david, i'll send it back downtown to you. >> okay. thank you, sue when we come back, the coronavirus's corporate impact we'll talk to one ceo how he's handling the outbreak with 90% of imports coming from chinese manufacturers. we're back in two minutes. - at southern new hampshire university,

we believe in education built for all people. - [woman] snhu was the best experience of my life. - [man] without snhu, i wouldn't be the leader i am today. - [woman] i graduated high school 19 years ago. i still finished. - [man] in the military, you feel that sense of accomplishment. that's what snhu is. - you will march from this arena

and say to the world.. i did it. - [woman] you did it. i love you. - [graduate] i love you too. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives

everywhere. everywhere. everywhere. everywhere. everywhere. markets are rallying as dow and s&p seeing their best gains since october and june for the dow. mike santoli is on set to talk about today's action, what's driving it i heard some commentary people didn't understand why europe was up so much overnight. >> it's a good question. i do think not getting worse day to day out of china, an increase in the case of virus but more about the stability in chinese markets laid groundwork. liquidity on chinese authorities underwriting this whole thing and agreed the strength in europe beyond china holding together does not make a whole lot of sense there's an element here, too, of iowa, i think, a sense of, you know, look, if we were

hedging -- there was a lot of hedging going on ahead of super tuesday, the idea was the scenario unfriendly to the markets was somebody leaving iowa with a lot of momentum on the left that didn't happen net that all out what you had was a pretty good shakeout in the market i don't think it's a textbook trading low off to new highs but made enough sense you got enough stuff cheap enough in two weeks' time that if things are holding together it's a buy. >> it's interesting to see the market react to data like factory orders coming in better than expected today because you would think, well, that's before the coronavirus. but i guess it's the fact that manufacturing, there was something to the rebound. >> that's right. >> in manufacturing. >> even before coronavirus if you think it's temporary it's on a more solid footing and that's potentially good news. >> it's coming off a base that looks like it was stable and going in the right direction people have said, oh, this is a terrible time -- obviously never a good time for this outbreak.

a terrible time because we were waiting for the world. you know what would have been a worse time september. when we were basically thinking recession was a near possibility and that would have been piled on top of it i think that is the point that essentially the underpinnings are okay and it's a matter of how many quarters are we going to have to live with this slow travel and trade and manufacturing situation. >> meantime dow up, a fresh poll, trump's job approval the highest of his presidency. on the economy 3%, you have to go back to g.w. bush post 9/11 to see better ratings on the economy. >> absolutely. the whole story of this campaign was if it was just the economy, then there would be kind of a layup for the incumbent no matter who it was. the wrinkle here has been president trump has been underperforming the economic poll numbers that is a change right there i do think if you look at the betting markets there was an uptick in re-election prospects.

>> what propels you to above new heights. >> i don't know. i don't know if anything does except what was happening before very low rates that came at no real cost and economic pain. the leadership of these mega tech giants that people just continue to love obviously what's interesting, too, apple, google, microsoft, they all have moves that really didn't drive the market one way or the other but they did react to their own numbers. >> poem still point to russell underperformance as a sign that the economy itself is not as good as the stock market suggests. >> a fair assessment i think it's a 2% piece and that's not enough to lift all boats at this point in the cycle. it's not enough to allow smaller companies to deal with margin pressures that come along and explains why we have this growth leadership, narrow leadership. the question to me is a lot of cyclical stuff transports and gets beaten up along the way energy looks totally orphaned at

this point who knows if that can come back. that can be a net contributor. >> up today for a change what about tesla, mike who is buying? >> a lot more people than a few months ago so many things coming together with tesla first heavily entrenched longs and shorts when i say there's a short screen happening here, on the long side there's people who weren't selling. you have early investors who love it. obviously musk is not selling, a quarter of the stock ron baron not selling a share. that combined with massive public manic action to ride the momentum, it's not in the s&p 500. it's by far largest market cap stock not in there so you have great incentive if you're performance-based to own some. >> fomo. >> some fomo there all of it works together. >> citron out with a tweet

we love tesla. if he was a fund manager no longer about the technology it's the new wall street casino. >> that's what it's becoming at these levels by the way, he wouldn't have to short the stocks, he could issue shares that would help the country and capture the premium that's built in if you look at the retail investor flows, robin hood app, 12,000 new accounts bought it yesterday. >> amazing. >> all that stuff is whipping up this froth. >> that's retail. >> incremental buy to his point, not a lot of people selling what you would otherwise expect with this kind of move. >> without a doubt what the machines love to do, systematic traders is interact with heavy retail flow that's a kind way of saying they like to take the other side and trade around it. the dollar volume in the first hour of trading was $16 or $17 billion, eight times what apple traded. >> today. >> today, yes. >> mr. musk's net worth, by the way, is soaring as well.

not just ownership but compensation agreements. >> by the way, it's hard not to see the flip side of destruction of the energy sector as well. >> yes. >> it really is. you have esg stuff, all of it working together you have multiple cover stories for why it's doing what it's doing. >> thanks, mike. meantime coronavirus cases passing 20,000 in china with hong kong reporting its first death. supply chains are under pressure as several companies halt production in china. joining us now to discuss what that all looks like jay foreman president and ceo of basic fund, a toy company that sources over 90% of its products in china jay, nice to see you again last time we talked to you, it was around tariffs and trade this is a new headache talk about how it's impacting the business, how many factories you have closed and what's going on >> yeah. it's really a nightmare. again, we're going through i feel like my casper mattress is haunted every night dealing with this the last time i was on the show,

we just closed the phase one trade deal which was fantastic for our category in toys now we're dealing with this. what we're dealing with now, most people don't understand, china this time of year goes through the greatest migration of people in the world during the chinese new year where the factory workers leave the factory provinces and go home. it's a really interesting time, the workers are all in their home provinces it's like an extra long christmas vacation the trick is and challenge is will they be able to come back to the factories in the next two to three weeks factory management offices were supposed to be open yesterday on monday the government has kept everything closed for another week so this coming monday is going to be really important if the government allows the management and the operational staff to return to the factories, that's a good signal that the workers will be able to start to return. if the workers can't return, if

they lock down the provinces like they have, wuhan and hubei province is locked down right now, it's going to be a challenge. it's going to delay the restart of the factories most of the china factories are closed right now they are supposed to begin to open back up again in the next week or two. if there's a delay, that could really stretch the supply chain out a bit. >> so how prepared are you do you have enough inventory are we going to see shortages? >> well, you know, what's interesting is it's sort of a knock on effect and sometimes you get a little lucky we brought a lot of folks and toy industry brought in extra product at the end of the year because we wanted to get in under the wire of the tariffs. so we're heavy on inventory right now, which is great. if there's a delay of two, four, six weeks in getting the flow going again, we should be able to cover that. the real challenge is if this starts to creep into april, may,

and june, then it's going to really be a disruption right now what we're doing, the biggest thing i'm doing every day, is trying to chase down these things trying to get masks. we're searching all over to get masks to send over to china because the people can't return to work and really can't even leave their homes without the masks. so we've been going everywhere to find these. actually, these are made in america, so we're exporting these from the u.s. back over to china to make sure our offices in hong kong and our factories have enough masks to start to get the workers back in. we're monitoring every day right now -- >> jay >> yes, sir. >> where are most of the factories in china that you rely on. >> most of our factories are around the port regions and the coast. so we're in shenzhen, beijing. not in the epicenter, the factories aren't in the epicenter but the workers live

all throughout china, so they need to come back down from central and northern china to the southern provinces into the factories. >> what are you watching to try to get a sense for the situation beyond obviously cnbc? are you relying at all on anybody in country who is being very helpful in terms of telling you what's really going on >> yes we have people on -- we have folks in our local offices in provinces all over china, so we're checking with them literally every night to see if there's any announcements from the central government really the cue is going to come from the central government. they are going to be the ones to make the decision. one thing nobody is addressing here is the root cause of the problem. this is really what china needs to address what they need to address is that they have got these unregulated, unlicensed food markets and wildlife markets all over the country this is now the third big outbreak we've had sars, we've had bird

flu and contravirus coming from unsanitary conditions in unregulated markets. china is spending $170 billion to sort of divert the effects of this they need to start spending some money to close those things down or this is going to happen all over again. >> so jay, i mean, my question is, and i have the same question around the trade story are you or your industry too exposed to china for production >> in some ways, listen, when it was around tariffs, i didn't think so now maybe we are our challenge is, where do you go from her? is there less of a chance of a circumstance like this happening in vietnam or indonesia or frankly speaking india health conditions, the political circumstances, infrastructure, there's not a lot of good options. you guys have just been talking about how great the economy is and how low the unemployment

rate is, so there's not really an opportunity for many industries to come back to the states so the best bet that we have as an industry and really business in general is to keep pushing and helping china strengthen their infrastructure so they can accommodate these kind of situations better. make sure they are a good actor around the world, so we don't have any disruptions from the political standpoint, and we keep things flowing. people used to say when america sneezed, the world catches a cold we're going to find out about china. china just sneezed we're going to have to figure out whether it's a sniffle, a cold or really a serious pandemic anything the governments can do to work together, it's been great to see our government and w.h.o. get into china early. that's been a big help but they they'd to clean up their infrastructure. >> jay, thanks for joining us. keep us posted jay foreman of basic fun toys. >> i sure will.

as we go to break, take a look at the top stocks on the nasdaq not a surprise tesla leading the way a shade below 900, dow is up 362. we're back in a moment ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg.

these wild market swings could stick around it might not be a bad thing on trading bull find out more on trading nation cnbc.com more "squawk on the street" coming up. - [narrator] at southern new hampshire university, we're committed to making college more affordable. that's why we're keeping our tuition the same through the year 2021.

- [woman] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu. our retirement plan with voya gives us confidence. we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. i'm good at my condo well planned, well invested, well protected. voya. be confident to and through retirement. welcome back to "squawk on the street." rick santelli here live on the floor. welcoming my guest, dr. nathan sheets we learned a lot with coronavirus, about how the u.s. treasuries become the favorite buy on the street and across the globe as rates are pushed down between the fed, who bought 70% of new treasury net issuance since october, all the negative

rates across the globe, a major flight to safety harbor, but through all that it seems to not pay much attention to economic fundamentals in the u.s. is the yield curve or interest rates truly an economic indicator of any validity anymore? >> well, i think that is a question a lot of people are asking themselves now. as you point out, there are a lot of nonfundamental factors that are at work, flattening and maybe at times inverting the yield curve, central banks, asset purchases, regulatory requirements putting pressure at the back end of the curve. and i would add to that list shifting demographics with an aging population you have an increasing number of investors who are looking for a safe place to put their money over the medium to long run, and i think that's also influencing the shape and slope of the yiee excuse me -- the fed and all

central banks' job nearly they don't like an inverted curve, but should they keep lowering rates on the front end based on investor appetite around the globe due to mistakes by other central banks does that make sense >> so, central banks, i think, are kind of stuck. on the one hand, they look at inflation and they're disappointed with it on the other hand, they have these extraordinary forces we were discussing that are holding down the long end of the curve they're reacting to it as best they the bigger question, how much force their policies can have in this environment >> i think that is the main question actually. china is a net seller. but does it matter everybody else in the world seems to be net buyers

dr. nathan sheets, thank you for your time. david faber, back to you >> thank you, rick santelli. time to send it to jon fortt for a look what the's coming up on "squawk alley. >> what a run for tesla. we'll give you a double dose of tesla analysis we have a tesla bull who just went neutral on the stock and a tesla bear whose price target is like half of where the stock is trading this morning ci wfully that will help you dedehat to do from here. that's coming up on "squawk alley. (vo) in every trip,

there's room for more than just the business you came for. whether that's keeping up with what you always do... or training for something you've never done before. that's room for possibility. ♪

welcome back to "squawk on the street." i'm dominic chu. stocks are on rally mode, but the lone holdouts, utilities and communications services in the red but some of the names in energy may be getting some relief oil and gas companies are climbing today including devon energy, eog resources and schlumberger as well it's not enough to make up for some of their declines so far this year. keep yan eye on that energy trade. back to you, dave. >> can we have a tesla-free closing bell >> absolutely not. plus we have a huge day for

postmarket earning disney, ford, chipotle, snap any other names set to report. and disney ceo bob iger will be joining julia for an interview after the disney numbers hit plus coronavirus impact and much more see you guys at 3:00 >> it will be a big afternoon. when we come back, it's the company that has everyone dancing. we'll talk to noted tesla analyst adam jonas on the stock's meteoric rise. hey there people eligible for medicare.

gimme two minutes. and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza... [mmm pizza...] is your part b medical expenses. this much - about 80 percent... medicare will pay for. what's left... this slice here... well... that's on you. and that's where an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company comes in. this type of plan helps pay some of what medicare doesn't. and these are the only plans to carry the aarp endorsement. that's because they meet their high standards of quality and service. wanna learn more? it's easy. call unitedhealthcare insurance company now and ask... for this free decision guide. inside you'll find the range of aarp medicare supplement plans and their rates. apply any time, too.

oh. speaking of time... about a little over half way and there's more to tell. like, how... with this type of plan, you'll have the freedom to choose any doctor who accepts medicare patients. great for staying with the one you know... or finding... somebody new, like a specialist. there are no networks and no referrals needed. none. and when you travel, your plan will go with you anywhere in the country. so, if you're in another state visiting the grandkids, stay awhile... enjoy... and know that you'll still be able to see any doctor who accepts medicare patients. so call unitedhealthcare today. they are committed to being there for you. tick, tick, tick, time for a wrap up. a medicare supplement plan helps pay some of what medicare doesn't. you know, the pizza slice. it allows you to choose any doctor, who accepts medicare patients... and these are the only plans of their kind endorsed by aarp. whew! call unitedhealthcare today

and ask for this free decision guide. good morning it is midnight at tesla's factory in shanghai, 11:00 a.m. on wall street and "squawk alley" is live ♪ walk like an egyptian ♪ they oaf got the moves you drop your drink and they bring you more ♪

♪ when the buzzer rings, they'r watching like an