>> stz up 2 1/4% stephanie link >> i'm tempted to buy comcast. i don't own it but it's a major lagger to disney, netflix, charter. some of the parts easily get upper 40. >> just go for it. >> maybe next week i will come on the show. >> your parent company. >> my parent company that does it for us. "the exchange" begins now. >> thank you, scott. hi, everybody, welcome to "the exchange." i'm kelly evans. here's what's ahead, the tesla takeoff. shares are soaring, and we will talk about what's behind the move and how many billions elon musk is now worth. payoff at the caucus, how iowa's pivotal role in the 2020 primary is a nightmare for democrats. the ripple effects straight ahead. and rough seas for royal caribbean and spiking drinks to spike sales. all of that in "rapid fire."

>> we're in record high territory, kelly look at the market now, second day of gains as investors try to assess the impact of those stimulus measures from china oil is also finding support after dipping into bear market territory. we're up about half a percent for wti crude. technology leading the sector now. you will see apple and many chip suppliers are trading higher after a report came out that said production in china would resume earlier than expected apple is up 3% skyworks, texas instruments and qualcomm seeing gains of 2%. now is the countdown to earn big names after the bell disney, chipotle, ford keep in mind ahead of the reports the blending growth estimates are 1.6%, better than expected back to you. let's get right to the top story now. it's the tesla takeoff the stock had a parabolic movement many didn't see coming. there's a lot of debate about why the stock is moving the way

it is but check out these numbers. it's up. tesla is up 114% year to date and it's only february in six months tesla almost quadrupled and volume trading yesterday a record for an individual stock and the market cap, how big it is now tesla is worth $164 billion. let's put it in perspective, netflix, $159 billion. nike, same thing, $159 billion and nvidia $150 in size and ibm, market staple is thousand $131 billion. let's talk about all of this now. joining me our own phil lebeau and mike santoni as someone who watches wall street, when is the last time -- how would you compare tesla to the price action for a stock of this size? >> for a stock of this size, kelly, a company of relative maturity getting up to $100 billion, it reminds me of some

of the tech stalwarts if you go back into the late '90s. a name like qualcomm had extreme vertical moves one similarity would be the market on one level is sniffing out the massive long-running opportunity this technology or business franchise can exploit but it seems to be front loading and people crowding into it all at once. it does remind me interzwrektry of some of those things. a lot of things going on with tesla in particular. which is is a very entrenched set of investors with elon musk and early investors, who simply seem not to be selling of course, you have short sellers getting trapped and fighting against that. and you have retail investors really making a mad grab for this stock as the momentum has carried higher that's the cocktail that we're seeing. >> there's the price on tesla now, $910. what do you make of it >> i think it's all of what mike was talking about. you obviously have the institutional investors, hedge funds, others looking at it.

we had adam jonas on earlier today and he's talking about what jim kraker cramer is talki about. esg is hot. >> environmental, social, good governance and people pouring into favored stocks. tesla a perfect example of that. >> and if you look at this, let's say you don't look at it as a tech company. you look as an automaker and you say i believe the future is electric vehicles. electric over the next ten years. who else are you going to play now? you might think volkswagen or general motors might be a player inelectronic vehicle but do you have confidence >> not just that they have an $800 price target and wildly bullish and they said look, the technology for tesla is still ahead what competitors are coming to the market with. is that right? >> absolutely. and not only ahead but in terms of cost. if you look at their cost relative to the competitors

right now, much lower costs. when you look back in the gigafactory, look, they control it they control the environment they're not having to go out and say hey, let me see your latest technology when it comes to electronic vehicle batteries. >> you can argue whether tesla is worth $800 or $900 a share based on future sales, but it's not so much that but the way we got there. to see a chart that something shoots straight up what do people think is going on is it sucking retail investors in the market? is there a role for short sellers? hedge funds? >> all of it actually. there absolutely has been a rush of retail money. there's not a broad-based public excitement for all stocks but this has captivated folks. you can look at the trading volumes in the robinhood app, which is very transparent about what their clients are doing 12,000 accounts yesterday bought tesla for the first time almost 200,000 own it now. i think that's going on. but you also have growth

oriented professional investors that see tesla as a way to participate in the upside and beat their benchmark it's not in the s&p 500 yet. it's the very largest stock that's not in there. and you have a lot of the systemic traders that love to interact with volatile retail-driven stocks that absolutely is going on i keep putting out the dollar volume as you mentioned earlier, kelly. it is now seven, eight times what apple is trading on a dollar trading basis today of course, apple is close to ten times as large. >> phil, it makes a mockery, frankly, of the traditional big three automakers you look at the combined market cap of those, maybe a third of what tesla is currently worth. does that make economic sense? >> it may not make sense it may not make sense for investors. i have talked to more than a few people on wall street who said look, is this the best val wais, best way to invest probably not because we're not sure it will pay off down the road. but if you truly believe electric vehicles will be the

future, would you invest in ford right now? who reports after the bell who you invest in general motors they rob tomorr they report tomorrow morning but there's no confidence the growth is there. >> what happens tomorrow or the next day or next this sharp move upwards starts to undo itself and turn lower. all of the boardrooms from the big three might be thinking why haven't we done more with battery technology and electric vehicles if this collapses, then what >> i don't think they're watching the stock as much as what they're doing tesla scares auto executives and the reason why is elon musk disrupted the entire business model. and it's no longer -- and you used to hear this four, five years ago. you used to hear yeah, the model s is nice but it's a niche vehicle. no, it's not anymore the model y when it comes out, depending how it does, will likely show it's not a niche vehicle. and in the meantime tell me

another electric vehicle you might be interested in other than tesla can you name one right now >> no. the only thing i heard about the porsche one -- >> the tyken. >> yes. >> but that's a luxury vehicle you're paying $90,000. limited sales. do you know what ford has coming up >> i thought about that crazy-looking bmw five, ten years ago and that's the last time i have seen anything. >> this is emblematic of the problem. the competition is coming. where is it? i have heard this since 2016 and it's still not there. >> amazing. >> the issue, kelly, for the short term is the big aggressive balls on the tesla story say down the road this is a software business, this is autonomous at some point if you get the stock level pricing in that magical future and not just we're getting market share gains against traditional vehicles, that's where the instability of the stock in the short term can come into play. >> as it's trading around $914 a

share. it's up 60% this week. guys, thank you very much. we will have more later on mike san tally and phil lebeau one broader part of the market we are seeing today the dow is off its session high of a 500-point gain and on pace for its best since june. dow and nasdaq back in the positive territory for the year. is the worst behind us now are investors getting in at the right time i'm joined by the the ceo of columbus macro and mary ann, would you make any comparisons to the market today and previous times like 1999 >> i'm looking really back to like 2003 when the sars virus was affecting china. but back at that time china was only 8% of the global economy. today it's 20% so a lot of things have changed. similar things are going on in the markets though

and i preface all of this with the fact i look as much as i can find but my knowledge is limited to that of my role as dr. mom. so i can't predict, take all of the precautions. it just seems to me that we've had a trend where the u.s. was very strong because of employment and we saw manufacturing numbers pick up in recent days for the month of december we were on a role but had a break in the positive trendline. it will take time but i think it will go back to the trend again, positive momentum and earnings and such, which will drive the markets. >> craig, what about you marianne thinks the rally will get on track i guess for some they're jumping to the question are things looking to frothy again? would you point to tesla and say it's emblematic of a larger problem or no? >> i think the concern was disruption to q1 growth.

the lesson i think of today is you really can't as a long-term investor trade in aj monness shock. you can't wake up and predict viruses. so you wake up maybe we could have a recovery in growth in the future q1 is the least important for china and this stimulus is a very important point not just is it liquidity injections but 2021 is the 100th anniversary of the party a lot of prosperity targets around that. and the people's congress will be meeting in a month to talk about a budget and stimulus too, and that's pretty powerful when the fed is back to its peak balance sheet in two to three months people wake up and say maybe we underestimated the growth recovery. >> that said, ma arien, you said you would lean against some of the growth trends. even a stock like exxon makes your screen. why? >> i think it's better knocked down along with the other energy

companies based on this whole limit to global economic growth because of the situation in china and spreading around the globe. with the xle pulling back 12% or so since the middle of january, and exxonmobil also pulling back, we think that these are very attractive, undervalued situations here. i would also point out -- i'm sorry, the chinese stocks and alibaba is one we like that's been knocked back. we think that the trend will continue at some point in time i don't know if it's a quarter or two quarters. but in the meantime i'm sure people are at home shopping online in china. >> sure. i think both of you are looking past the coronavirus scare problem and seeing a better trend there. craig, what would change your mind on that and make you say, you know what, there's a deeper problem here, challenge to the leadership, for example? something bigger than just trying to get our arms around this outbreak? >> i think we have to accept

there will be a lot of volatility around these kind of events and there's going to be disruption i think if we start to get a sense this is typically these kind of influenza type of outbreaks tend to be longer in duration than say sars so i think if we start to get a sense this is a disruption if we go past february, early/mid-february time we start to see resumption of activity in china, you will see growth that's more than a one or two quarter story, that's what would get me concerned. >> thank you both. appreciate it, guys. here's what else is ahead on "the exchange" -- turning up from iowa to the state of the union to the bernie rocks. politics is front and center today. what should investors watch the most we'll explore. plus, choppy waters. the ceo of royal caribbean joins us to break down the big impact coronavirus could have on his business and potentially the

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they had the first election and supposed to bring clarity to the democratic field this year instead iowa is in disarray, with democrats hoping to release partial results now by 5:00 p.m. joining me with more on the fallout, the executive editor of "the wall street journal." great to see you. >> good to see you again. >> they're saying iowa will lose its position as the first state in the primary looks likely now what does that mean? or is it none of it relevant because we go four more years before this and it sounds like michael bloomberg is just exploiting this opportunity. >> michael bloomberg exploits every opportunity for advertising dollars so i don't think you request read too much into that. every year we look at the caucuses and say we have to get rid of them. but this year is probably the real deal. this is probably the death nell. iowa's place at the front of the

line annoys democrats. they don't like it don't think it's representative of the country or certainly party. the caucuses themselves seem to be quaint on one level but unrepresentative on another level. i think you will see questions about both iowa's place on the calendar and the idea that caucuses make any sense at all both are bad news for iowa probably good news for new hampshire. again that matters less now than what happens at the moment what happens at the moment is the mess you described is with us for a while and i think for several more days. it means the people who did well in eye wiowa don't get as big oa boost and people who did badly won't suffer as much. >> people think iowa fofters extremes so this whole momentum behind bernie sanders was supposed to crystallize in this caucus moment if that doesn't happen or we're kind of off to the new hampshire results 234e6789 weenext week, e that then mean we can actually show this surge on bernie's odds

predicted in accordance to joe biden's odds, does that reverse itself, do you think >> it looks right now, anecdotal evidence, no results we have to take everything with a grain of salt. the anecdotal results show bernie sanders and buttigieg did pretty well, joe biden probably not as good as people thought. and that's the fourth place people and fourth place person is big and small but really important here the iowa tradition, the trend has been date left and marry more to the center but that didn't happen here, if bernie sanders had a big night that changes the dynamic among other things puts a lot of pressure on elizabeth warren every rolls into new hampshire where bernie is a renalal candidate. warren is a regional candidate she has a problem if he's the one who ascends out of iowa and competing for votes. but what happens to the people who didn't do that well? they have an opportunity to escape back that outcome in

iowa and to turn the page, without having people dwell too much on what happened in a bad night in iowa and move on to new hampshire and beyond as you suggest, waiting out there to see all of this stuff play out over the next two or three weeks is mike bloomberg, who arrives on super tuesday in early march and changes the narrative entirely. >> no, then you have the state of the union address tonight, where i will be curious to hear how the president capitalizes on this as you might expect him to. but it underscores what a guest said yesterday, who was tracking these things he said look, if the election were to happen today, it would be a shoo-in for president trump. do you agree with that is this a futile exercise for the democratic party over the next couple months >> it's not futile but you have to say the picture is improving for president trump. there are new gallup numbers that have his ratings as high a 40%. the economy is doing great you were just talking about it those are good signs for president trump.

having said that, we did a poll in des, withth "the wall street journal" and nbc news and we asked people are you certain to vote for president trump or certain to vote against president trump? 48% of the respondents, all registered voters, said they were sure to vote against donald trump. the margin of error is pretty small. the difference in 2020 between now and february and november, nine months is an eternity really hard to make predictions. but if you had to make a prediction right now, you would probably bet much more heavily on trump being re-elected than you would have six months ago. >> especially as impeachment goes on. so much more to discuss. your book looks fascinating on what happened to conservatives and how you build coalition, which the democrats need to do now. we appreciate you joining us thank you very much. >> good to be with you coming up -- we'll go back to tesla the big move giving elon musk a big boost to his personal

fortunes how many billions he raked in over the last couple of days and how it compares to the competition. require caribbean canceled eight cruises out of china due to the coronavirus ceo richard fain joins us live remember, you can watch us live on the go on the cnbc app

welcome back to "the exchange." let's get a check on markets what a day it is the dow having a best day since june 4th s&p since august and nasdaq intraday high. it's 444, pretty much near session high here are some of the individual movers shares of ralph lauren are up more than 11% after beating on the top and bottom line. north america, europe, asia all coming in strong ceo saying while they had to close stores in china, that represents less than 4% of its total business meantime shares of google parent alphabet continuing to slide today following a revenue miss the company for the first time did reveal data on youtube and google cloud, both of which fell shy of analysts projections. and ww, formally known as weight watchers, is up 7% this after an upgrade to buy at goldman, describing social

growth and tv and media marketing. now to sue herera with a cnbc business report. >> hello, here's what's happening at this hour of the chuck schumer accusing the gop of sweeping president trump's misconduct under the rug, claiming they're all hiding the truth. >> i thought the how did a very good job i thought they made a compelling case even if you didn't, the idea that means you shouldn't have witnesses and documents when we're doing something as agust, as important as an impeachment trial, fails the laugh test. venezuelan president nicolas maduro leading thousands of supporters on a march to the resting place of the late president hugo chavez, as they commemorated a failed coup, which chavez and others attempted in 1992. accompanying maduro was his wife sela, president of the national assembly and defense minister. the duke and duchess of cambridge visiting a lifeboat

station in wales they met the crew and staff at one of the busiest stations in that area and afterwards chatted with well wishers outside of the station. you're up-to-date. that's the news update, kel. back to you. >> sue, thank you very much. here's what else is coming up on "the exchange" -- ahead, a look at what to watch in tonight's chipotle's earnings sephora bets against them all. elon musk's wealth continues to rise and disney is hoping to deliver another magical quarter. it's all coming up on "the exchange."

welcome back it's time for "rapid fire. let's talk about elon musk, richer just because of tesla's stom performance this year he could be dancing to the bank with another $346 million. long story short, he doesn't even take a salary, does he?

his net worth is totally tied up in the stock now. >> yes. >> do you think he's getting a little freaked out >> i'm too rich! yes, i'm sure he's totally freaked out. put it into perspective. he's made $20 million an hour since new year's day $20 million an hour. $17 billion more than any other billionaire has made in such a short period of time he's now worth $45 billion if you look at jeff bezos, the closest, bezos is up nine. i think for the stock to get musk the richest man in the world, it would have to get somewhere around $3,600, which sounds insane, but so is today's price. >> that's four times what it's worth today but four times what it was worth six months ago. >> exactly he made $4 billion overnight last night. >> this is on paper, of course. >> yeah, yeah. >> we have a lot of fun with these numbers. >> we will cover it on the way

down too. >> okay. >> that's what i wonder about, the way down once it goes up to sharply, if i were a bull on tesla, if i were elon musk, if this were my company, would be feeling nervous about the pricing. >> and there's a complicated methodology where he doesn't read zero dollars in compensation up to this point but he has taken hundreds of millions of dollars out in loans against his tesla stock on wall street it was only a year ago people were looking at that as a potential risk when tesla stock was falling. but the fact it keeps going higher, i think it's positive for those loans and what that could mean potentially for a payday. >> we focus on tesla for obvious reasons, but this is where i love having morgan here, is that also clicking? there was a real concern at once upon a time that tesla was being kind of a vehicle for whatever's happening with the solar company or whatever's happening with the space ship company have those concerns about

ameliorated, i guess >> we talked about this with morgan stanley on squawk hour earlier. and i asked that same question and for people who don't follow space, that may sound like a crazy question but i think it's both -- >> doesn't it give him credibility. >> . >> they start feedback into each other in this elon musk mythology, if you will there are reasons to think there are potentially something like the startling satellite compilation could be something that works with tesla in self-driving cars. >> and adds $10 billion to his wealth of the 45, more than 10 is from spacex. >> you think he will be mentioned on the state of the union tonight? >> no. >> it's elon musk. >> and he comes from space, you

know. >> and staple genius. >> that's true let's talk about chipotle. they're set to report results after the bell today chipotle stocks is up 67% over the past year. it's at fresh all-time highs what's the most important metric for chipotle these days? >> i will ring you through this. analysts looking for eps of $2.67. revenues $1 billion. same stores. that will be in focus and expected to increase 9%. but i'm looking for the digital growth number. it's been at or near 100% over the past few quarters. chipotle has a membership that they started for members, and it's up around 900%. updates on new menu items and the return of the company's lifestyle bowls this january, which, again, were a digital-first initiative, pushing people to use their app. as well as performance of new

store formats they're testing out like those with pickup windows. those of things on my radar today. >> digital growth is interesting. i signed up for rewards. surprisingly hard to use at checkout, at least for me. i don't know if anybody else had that experience. do they have a thing against apple pay? every one i have been to is credit card only type of place. >> i have not heard anyone bring that up but that's something we can definitely ask the company about the next time we plat with them the mobile platform, whether you're using the app on the phone or online, that's become a huge growth area under ryan nichols leadership in the past two years now. >> yes, certainly applauding his leadership so far. would it be almost faultless pretty darn good. >> stock almost doubled in 2019. one of the best performers last year and the digital ordering, cha poelts-lanes, new digital length pickup drive-thru.

and sales 9.8% up, what analysts were forecasting these numbers. >> i was in one on saturday. what i love some of the places are doing digital pickup, you feel like as a person standing there you're being displaced by all of the focus of people putting bags on the shelves. but they had both going at very high paces and i felt quickly served, despite the fact you can see the digital orders and deliveries going crazy they have perfected that dual system of delivering digital and in store. >> it's true we're also enthusiastic -- makes me nervous it's all going right for them lately we will see what tonight holds. >> taco tuesday! robert said that earlier. >> that's why i got it kate, thank you. also tonight on "mad money," jim cramer will be sitting down with the cfo to talk about earnings release and so much more sitting with jack hartung at 6:00 p.m. tonight. >> next, sephora is going on a store-opening spree this year,

opening 100 new stores with the goal of growing outside of them all and also outside urban areas. i thought that was interesting how much are they emulating what's worked very well for ulta >> it's worked very well for ulta and sa mora has the awesome shops in jcpenney stores it's one area that used to be strong without the need for promotion, so people have been going in to those shop in shops. perhaps not radiating the sales out within the broader jcpenney. but it's interesting they will look into strip malls as opposed to pure malls. we know malls are not what they once were. not all malls, though, are underperforming. simon said we're not seeing what the rest of retail is seeing we're seeing square footage up and in-sales up. >> the mall is just changing. >> that's true sephora i also think -- >> top tier malls are strong. >> true. >> and core site keeps track of

stores opening and closings and so far in 2020 there are more store openings announced than store closings 700 to about 1,100 you think about sephora, you want to try on makeup. you're going in and someone's maybe physically helping you. >> look how ulta survived the coronavirus era. >> it's not just coronavirus era but makeup in general is declining. >> right. >> the girl trend. >> before the announcement they said they're looking at skin care and hair and fragrance. those are the categories that will grow. and i think it's a big question whether you can expand so quickly as a makeup store primarily in an age when makeup is declining. >> isn't ulta slowing? >> yes. >> they have but remember for a long time those comps, double digit, 12%, 14%. you can't do that forever as you grow it is slowing but to be fair

it's still doing relatively well compared to other retail peers. >> yes, ulta is a convenience place too. just trying to go into the mall park and go to a store is like a whole thing. if you just want to get in and out, the idea of having something standalone we got reports macy's experiencing with this now in texas. i think there's something to be said with that. >> macy's experimenting going away from the mall >> sort of stand alone, different format, personal care store. macy also bought blue mercury, which also has been expanding its physical floor print. >> macy's not over yet i never bought the decline there. alcohol is spreading everywhere these days. the gucci versions of seltzer in particular you have seen stealing market shares from light beers and wine even, all of these other categories it's more than a half billion dollar sales category now. and millennials and genz ers

reaching for healthier options even suggesting hard oatmeal can be hitting the schett vs in the near future. it seems it's not the alcohol quotient per se but the ingredients you're drinking and imbibe it in different forms i guess? >> i guess the lines are blurring and you have reports are drinking less in general going back to the health focus thing. i think stuff like cannabis is falling into this category too which is why you're seeing spirit makers partner up with strategic partnerships and acquisitions as well. >> what does it mean for the traditional food and beverage companies that alcohol is spreading? there's some sort of delineation that no longer matters i'm not saying you can pick up hard oatmeal on store shelves but are you buying them in a liquor store >> i think it's spreading like

the beer category, spiked seltzer. as long as it sounds healthy, people will drink it a lot of these things will say you can drink this all day and not get drunk but some of the alcohol contents are very high i'm waiting for the first alcoholic protein drink. i'm sure -- it doesn't exist yet. >> with ice cream. >> it will exist. >> back to the health trend too, if you look at the ciders because they can advertise that as gluten free. >> really? >> yes, yes. you will see that labeled gluten free that's an option you can have a beer but it's not actually beer in the traditional sense it's a different type, gluten free i think it's interesting with the drinking all day so maybe we're drinking less but we're drinking longer? i don't know of the it's all a little confusing. >> like blood flow moderation. >> you see amb bev coming out with their advertising during the super bowl they're investing money into it. see if it catches on. >> i wonder what the supermarkets will do ultimately. around where i am, if you want

anything with alcohol, you have to leave and go somewhere else to get that. if it's now going to pervade all of these products, how do you manage it? watch what your kids are graping off the shelves. >> it's just oatmeal, mommy. >> i had to look at the can the other day, am i drinking alcohol or juice >> having so much fun here anyway, thank you all very much today appreciate it. shares of morgan are declining after the company reported earnings that didn't match expectations today and we will speak with ceo richard fain about the steps the company is taking to mitigate risks. and here's a look at the top ticker search on cnbc.com. no surprise, numero uno, tesla and alphab uthe wl.etp erasel ten-year hanging in the second spot i love the new myww program, because it's tailored to you!

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exchange." the coronavirus outbreak continues to intensify with nearly 21,000 confirmed cases across four continents it's having a material impact on many companies, including royal caribbean cruise line. the stock is higher on the back of ennings which met expectations but the company is warning it will take a financial hit from the virus let's bring in seamy modi with a cnbc exclusive this will be the issue of the year for them now. >> yes the company is estimating a 25% hit to 2020 earnings but that can change the question is how much let's bring in richard fain on that note. thank you for joining us fresh off the earnings call. we know the sales are baked in but what about asia? are you seeing a lot of cancellations? just yesterday they had the first confirmed case of coronavirus in japan. >> thank you coronavirus is something we don't know enough about and i do know the authorities are working on it veryheavily. the good news from our

perspective is that in the u.s. and in europe and pretty much everywhere but china, we are really seeing very little impact from it. people seem to be confident. i must say both the chinese government and other governments are taking a very proactive and very aggressive approach to contain this i think that contrasts what's happened a little in prior outbreaks and i think that's giving a lot of people a lot of confidence. >> richard, i'm curious, there's a lot of scrutiny on the way cruise ships and airplanes handle an outbreak like coronavirus. how can we move more quickly without overreacting in situations like this in the future >> well, i'm really very pleased with the way not only our people reacted but the cooperation with the governments and with w.h.o. and cdc out of atlanta, they really have been very

forthcoming with the information that's available to them of course, we would all like to know more and all like to understand this better but they've been active and they've been communicative i think in today's world, that's one of the biggest issues. people want to know what's happening, what are we doing about it and their information has helped us be proactive in that way too. >> royal and all of the other cruise lines have effectively banned anyone who's been in mainland china or hong kong from entering or boarding a ship in the last 15 days are you concerned this could potentially discourage the chinese from booking a cruise, let's say six months out at that point perhaps, but coronavirus will be contained? >> not at all. i think that's the consideration we should be keeping in mind but i think everybody understands that the best way to deal with an outbreak like this is to contain it, is to make sure it's not spread and these are the kinds of steps that people should be taking

the cruise lines are taking in a very concerted effort. and i think people respect that and, no, i don't expect that to abound in any way negatively. >> richard, let's say i'm going on one of your cruise ships tomorrow how do you reassure me -- >> that's a good idea, by the way. >> you're going with that. combust how can you assure me my fellow travelers didn't have this virus how do i know there's not anything you can to detect it? especially if there's an incubation period. is there a passport check? how would i know i would be safe >> yes, as you say, both we and the cdc and w.h.o. have established guidelines, the cruise industries, to trade group khalilah established minimal rules so anybody who, for example, has been in the infected area during the -- basically the furthest out period we're concerned about,

which is 14 days, is not boarding the ship, that people are going through medical screening tests. so i think we're taking the appropriate steps, and i guess the important thing is that the public here in europe and elsewhere sees it that way and so our reservations, our call volume is very much consistent with the idea that they are accepting we are taking the right kinds of steps >> all right, richard, thank you so much. >> thank you. >> richard fain, ceo of royal caribbean. seema, thank you very much as well, seema mody tune in to our cnbc special report, outbreak: coronavirus, live at 7:00 p.m and we will be getting to xte big movers behind the gain ne when it comes to using data,

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how about microsoft, apple and caterpillar? up 3.6% and in terms of the sectors, it's information technology, health care, also consumer discretionary leading the way. tech and consumer discretionary are on pace to close utilities which b had been a higher flier shares of disney climbing 8% over the past three months with the stock popping on the launch of disney plus u in november investors are anxiously awaiting the subscriber numbers after the bell b tonight we'll get a preview of that next

welcome back to the exchange disney is set to report earnings after the bell today and the street is anjali awaiting a number of key metrics. including news that the media giant secured the wide rights to hamilton reportedly, disney spent $75 million to do so for more on what to expect, let's bring in john and julia boorstin welcome to you both. john, is it just all about the subscriber number for you? this afternoon

>> we're going to look at all the other segments, but certainly the business is going to get a will tlot of focus >> what's your estimate? i know is street is somewhere between 20 and 25 million. where do you come down on that >> we're at 20e million. expecting somewhat less than that previously but after they give that 10 million number, we move up to 20 million. >> julia, we should be talking about netflix. look at us talking about disney and subscriber numbers this is the kind of talk themd theld want, the kind that would warrant a higher multiple, maybe a different kind of company. z >> i think it will be interesting to see not only how many subscribe disney plus has, remember they said the goal was 16 to 90 million by 2024, but also to see how disney plus has impacted the growth of hu ulu ad

espn plus. they sell those as a bundle so it will be b interesting to see if they're really gaining traction for this bundle of all three because that could be a sign of what's to come in the future the ceo of hulu just left. they're going to be folding hulu in more under that division at disney jo >> does anything they say about espn matter at this point? sfwl absolutely. that's their biggest segment i think there's going to be a focus on hulu. live tv product. maybe we'll get an update on that product but u i think as you suggested, we're going to get more color on the consolidation on hulu into the rest of their business maybe commentary about the global rollout, but espn is going to be a focus. it's their main business not where the growth is, but that's going to be a focus as well >> so what about this hamilton deal $75 million. netflix spends a ton on content. on the expense side, are you

focused on that going forward? >> of course and 75 million is a big number the sort of an outsized number for this kind of content, but disney is known for their ip their sort of culturally significant ip this makes a lot of sense for them, especially with the new platform >> you have a $162 price target. julia, what do you think is going to be an important focus here >> disney does not give official formal guidance from a quarterly perspective, but sometimes, bob b iger will give insight especially at the theme parks, and this quarter of course when it comes to theme parks, i will have lots of questions when i interview him about any impact of coronavirus on the 25th and 26th of january. they shut down shanghai and hong kong dizsney land respectively it will be interesting to see

what he sees about how much coronavirus could impact the company particularly that theme park division wi >> thank you and julia will be interviewing bob iger on closing bell today don't miss it. that does it for us on the exchange i'll go join tyler for "power lunch" which starts now. >> thank you, kelly. we will see you over here in a moment i'm tyler mathisen welcome and here's what's new at 2:00 for "power lunch" on a tuesday. stocks back in rally mode. the dow up 475 points. now 490 adding to yesterday's gains and we have now completely erased friday's 600 point drop which is fuelling the jump we'll explain. to the extent we can find an explanation. plus, tesla's electric surge rolls on, jumping another 18% and now up 40% in two days can anything stop this stock and later, disney getting ready to report th