it is 5:00 at cnbc here is your "five@5." can nothing keep this market down china slashing tariffs on billions of dollars of u.s. imports sending asia surging tesla, another wild ride talk about a sleepy reception bauking at the public startup. and forget bitcoin some bankers are calling for a

fed coin it is thursday, february 6, 2020 "worldwide exchange" begins right now. good morning and welcome your chart of the day illustrates what goes up must come down coming off the second worse day after that massive runup we saw on tuesday. first, we'll take a look around the world. a major come back here under way on wall street higher by almost 10 and nasdaq higher by 41 less than a percentage point away from all-time levels.

we'll watch this closely it has been a wild ride after the massive sell off after three straight gains we'll look to see where we are going on the market. indicating the gains we had yesterday. take a look at the bond market on the yields. you'll see the gains lower here. pushing the tuck higher. marginally lower here. let's go worldwide seeing records for the stock 600. green across the screen. ftse 100, marginally higher. for more on that, we'll send it

over china has announced it will slash tariffs on u.s. goods. that will slash the tariffs in half the u.s. plans to cut tariffs of their own. all of this as china will bolster markets hong kong imposes a new quarantine on new arrivals coming in from mainland china. we'll go to joumanna >> the big surprising news is china's announcement that they are cutting tariffs on $75 million of u.s. goods. pretsy much all of the chinese indices are trading higher

the shanghai composite up 50 points following from positive session yesterday. this is not the first measure announced by chinese authorities. earlier in the week, they injected 1 trillion yuan we haven't recoup rated the losses from that monday session when we were down 8% we are about half way there. shenzhen is tech heavy is seeing an increase. hang seng up 2.6%. seeing recovery there too. stocks doing well are consumer stocks there has been reports of scramble in super markets.

one of the reason those are rebounding nicely today. the theme is positive in asia and the handover has been positive >> reaction pours in look at yum china with shares slipping 2.9%. in its release, the company said it closed hmore than 30% of the stores in mainland china bringing down sales 40 to 50%. and states it may experience operating losses for 2020 as a result of the virus. >> ackman sold his last shares

of starbucks two years after announcing his $900 million stake. they have closed 2,000 locations in china amid the coronavirus outbreak >> mattress maker casper reduced at $12 a share original range was $17 to $19 a share. the company plans to list on the stock exchange on cspr they have been facing scrutiny for its high costs we'll get back to that back to the market, our guest, chief investment officer dan, thank you for being here. i wake up and wonder, are we going to worry about the coronavirus today or not it looks like today we are not

going to worry about it. does it not change things because it is having an impact on container volume. yum china saying sales could be down starbucks is closing locations why are we not worried about it today? >> i think that view right now is that it is con continued. it is going to follow a course that will be months. the impact will be a quarter or perhaps into the second quarter but you'll make back a lot of that towards the middle or latter part of the year. that is where i sit right now with what i know about the virus. i don't think it will impair economies around the world but it pushes out a scenario i had that was a more linear fashion

we've gone from a shortness of supply of oil or potential for that over middle east tensions to a glut of oil and concerns for the demand it is interesting that china is lowering tariffs that functions almost like a tax cut and the stim la tiff to banking level. united states could do the same thing for potential weakness here that we could lower tariffs on china for reciprocity for its actions. >> as you look at these cross currents, what are you doing with your portfolio? does this change your thesis >> i think we are holding more cash than we would normally. we are not changing the sectors

that we would outperform we remain very sick call we are a little more selective with it in technology because of a little valuation issues you need to look at. within health care, there is a lot of opportunities now particularly as the political situation in the united states begins to unfold some of those areas particularly like managed care are more clear. the outlook for those companies might be improving >> a busy day ahead. thank you for being here this morning. >> a lot of things to consider >> when we come back, running on empty. the fitness stock preparing for an ugly day of trading and how

the match making game gets going for valentines and the top cities for young business people ♪ yes i'm stuck in the middle with you, ♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. so it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way.

♪ ♪ beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary.

take your business beyond. futures are pointing to a higher open. nasdaq higher by 38 points p peloton reporting a low.

shares are falling today almost 7% guiding third quarter revenue below estimates. poll ton stock had risen 40% qualcomm's numbers had fallen. cutting the low end of earnings guidance as it is starting to see a decline from chinese customers. and in the eu, launching a probe over radio frequency chips tesla bouncing around a little bit this morning after tumbling 17% yesterday. shares fell after a senior executive in china said the coronavirus would slow the delivery of the model 3. shares are back higher again by about a percent. ahead, top take aways from

an oil summit in houston "worldwide exchange" is back after this >> announcer: today's big number, 1,861. that's how many points the dow has traveled in the past five trading days 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.

introducing a razor that works differently. shipsticks.com saves you time and money. the gillette skinguard has a guard between the blades that helps protect skin. the gillette skinguard.

...take the personal assessment i love the new myww program, because it's tailored to you! and get matched with a proven weight loss plan. find out which customized plan can make losing weight easier for you! myww join today with the ww triple play! you are looking at a beautiful shot of chicago.

it is snowing there. a lot of people don't like the cold and wind but i think it is beautiful. great city opec is down remaining divided how to tackle the coronavirus demand threat. joining me now off the summit in houston. thank you for being with us today. what do you think about the impact of the coronavirus and how much it is pressuring the price of oil and energy. is it overstated or do you think it is fair to say, yes, demand will take a big hit because of everything we know so far about the coronavirus and how it is keeping folks at home. >> it has weighed heavily. opec ministers are aware of thatnd keen to arrest any further slide.

people don't know how long the impacts will last. there are estimates there it could cut annual demand by 2020 by anything from 300,000 barrels a day. some ministers are keen to preempt a slide. >> any indication about where they are going to go and how they will handle production because there is still so much we don't know about the virus? >> it is complicated by the fact there is over 1 million barrels a day from libya that is shut in at the moment. there is a debate whether a preemptive cut at this point is really going to help or whether it is premature to start thinking about that.

i think there is a vig russ debate i suspect they don't want prices to go further for the sake of their own budgets. it is not a clear cut decision we have more in libya. that supply remains cut. if the coronavirus clears up, have they prompted a spike in prices that could be damaging for the global economy >> you mentioned you just wrapped up the america's crude submit when everyone is putting on their honesty hats, what are they focused on? the shift in esg and how that will affect companies down the road what was the big talk of the conference >> i think there are obvious concerns about the short term.

the state of the market because of the coronavirus and the pace of the recovery. there were concerns whether the u.s./china trade war would result in that fashion there was an appreciation of major players in the upswing they have to step up to the plate and prove their operations are sustainable. there was general medium term optimism for shale, exports and global markets. once we get into the coronavirus, there is optimism extra barrels can leave the golf coast. recovery in asia remains on

everyone's minds >> thank you for being here with us this morning from houston still on deck, a new report says the clock may be ticking for the swiss watch industry could apple be to blame. but first, saying goodbye to one of hollywood's greats. "worldwide exchange" will be right back >> i'm sparticus >> i'm spartacus flus do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond.

. let's get a check on other headlines in new york with frances rivera >> good morning to you president trump acquitted and emboldened the senate has cleared the president on charges of abuse of power and obstructing congress and now he appears ared to strike back announcing on twitter he will make a public address noon earn to discuss our country's victory on the hoax. kirk douglas has died at the age of 103 he is survived by his wife of 64 years and his four sons.

shakira's half-time performance at half time her red boots cost $20,000 why so much? they were embellished with 30,000 crystals. >> thank you, francis. when we come back, beijing announces it is slashing tariffs on billions of u.s. imports. we are back after this legendary terrain in telluride,

the unparalleled landscape of park city, or the famed peaks of whistler, you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow. ship skis. your skis. delivered.

markets look to notch a fourth straight day of growth. china announcing it is slashing tariffs on some u.s. goods amid fallout from the coronavirus we are live with the latest. and bernie madoff asks for an early release on claims that he is dying. "worldwide exchange" starts right now. ♪ welcome back i'm courtney reagan in for brian sullivan here are how your stock futures are looking. the dow indicated higher by more than 100 points. s&p 500 would open by 111,

nasdaq higher by 45 points what a ride it has been after that massive selloff on friday we have now had three straight days of gains. monday, back 144, tuesday, gained 407 points on the dow, wednesday, we added almost 500 points it has been a week, we still have two more days of trading to go including today the yield on the 10-year at 1.6. shanghai higher by almost 2% take a look at france and germany adding a quarter of a

percent. frank holland is here with more. >> we'll start with some fed news the federal reserve is apparently looking into having its own digital currency the central bank is looking at a broad range of issues around currencies conducting research and experimentation to currency and technology including a possible fed coin >> ancestry is laying off hundreds of people, about 6% of its total work force citing a slow down of demand for the cuts nike speaking out about the impact of the coronavirus. elaborating on the decision to

close half of the stores in china and the impact it will have on the company's bottom line >> our first goal as a company is to focus on safety and health of our teammates and workers more than half our stores in china are temporary closed and those that are opened are working on reduced hours there is a slow down in traffic and that's why there will be a slow down of china growth. also emotional moment talking about kobe bryant there. >> a lot going on with that company around the world china has announced it will cut tariffs on the u.s. as they continue to grapple with the

outbreak of the coronavirus. tariffs on roughly $75 billion worth of u.s. goods will be reduced. the u.s. plans to have some tariffs of their own as the death toll from that outbreak has surpassed 500 the number infected surpasses 30,000 and in hong kong, a quarantine on those arriving from mainland china. shares of yum china with quarterly results because the company has closed more than 30% of stores. bringing sales down to 40% to 50%. yum warning it may experience operating losses for the first quarter. eunice yoon joins us what are officials saying about

the thinking behind this move? >> chinese officials are seeing this as beijing sticking by its word and the trade agreement with the united states the chinese move follows a similar decision by president trump back in december when he treated out that there would be additional tariff cuts on $130 billion of chinese goods that would go down a half kicking in on february 14 the china cuts will happen at the same time. the tariffs on crude oil will drop soybeans, pork, chicken will all see their fees reduced

the timing hasn't been lost here because they fully understand the outbreak here. ubs said today the tariff reduction and stimulus sees this as a move indicating that at least the u.s. and china you a relationship and honeymoon period after the phase one trade deal was signed could have lasted even longer looking for flexibility now on pledges to buy the american goods because of the virus outbreak they had indicated that china could use a disaster clause in the phase one agreement in order

to back out of some of the pledges that it needed to make >> all very interesting. we've been thinking about these two separate issues being trade and the coronavirus. there are so many interrelated elements as we think of u.s. companies moving production out of china perhaps as factories are shut down, it might not have been as harmful even from a year ago >> it is really difficult to say. everything is supposed to open next week. nobody knows whether that will happen there are big question marks right now. the chinese government is

working hard to contain the virus. wuhan authorities have been under tremendous pressure because they've been ordered to test all suspected cases by end of day friday. through yesterday and today, a lot of the suspected cases have been moving to popup hospitals and clinics. one of the major complaints has been that the past practice of requiring these mild cases to self-quarantine has only led to more family members getting infected >> a very good point thank you for keeping us updated. it is a lot. our next guest says there are increasing worries of slow down in china because of the

virus outbreak the senior vice president for trade, policy and geopolitical risk thank you for being with us. we were just talking about all of this. as you see all of this putting it together on imports and what we know about the virus and continued spread what does that mean for the phase one deal why does this put it at risk >> sure. because of that deal and they are determined by the impact and the spread to the economy. one of the things we are following closely is how long

you see factory close yours and how long you see this last and seeing domestic demand for ag products at some point, that would impact the pablt. in the election year, that means donald trump would try to push back on them it creates a lot of risk for our investors. >> with the disaster clause, do you think that is something they would be exploring. >> absolutely. the provisions within phase one

in the event that there is a natural disaster those clauses are a little bit when the deal was struck, there is no indication or real thought or expectation that we would get two to three days into the deal and there would be this unforeseen difference. >> if you were an investor, you would think phase one and phase two, from what i'm hearing, maybe we shouldn't be so sure in thinking we are set and moving on to the second half year >> that is a perfect way to put

it if you look at what president trump has said, it is clear he still looks at purchase commitments, purchases around agriculture as crucial if you see chinese command flat from where it is today that should make it much less optimistic with how those stocks will develop next year >> thank you for that. coming up, one of the most anticipated ipos of the year casper will see rating today and a sluggish response from investors. top cities future leaders will call home. when "worldwide exchange" returns.

for silky hair, glowing skin and healthy nails. look for our coupon in sunday's paper.

♪ yes i'm stuck in the middle with you, ♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. so it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. ♪ ♪

let's get a check on stocks today. huawei is suing verizon. seeking compensation and royalty payments for technology for computer networking, downloading security shares of verizon down marginally the two sides have met numerous times but failed to resolve the dispute. toyota numbers up. the impact of the coronavirus hasn't been factored in. t they are exploring alternate sources for parts that they get from china earnings of zynga, reporting better than expected bookings or

future revenues which includes in game revenue. writing new titles such as game of thrones slots casino. lets find out what else you'll be talking about >> watching the new trend. watches. apple is dominating. not only was apple the best selling smart watch, it outsold the entire swiss watch industry. 21 million units shipped by swatch and tag younger buyers are preferring computerized wrist wear over analog watches >> i always wear my fitbit or apple watch.

>> you are not alone michael kors parent company is calling out watches as a weakness without saying people prefer apple watches, they ultimately said that. i don't know if it will be a permanent shift. >> it is part of people dressing more casually. swiss watches are generally nicer. they go better if you are more dressed up these are more versatile >> wup more thing you have to charge that annoys me >> that is a little annoying for young entrepreneurs, where you live would impact your success. number one, new orleans. average age of entrepreneurs 31.

former number one, salt lake city came in at number two, phil, number three, sacramento, california with an average range of 41. >> 37 is kind of old so many years you saw great tech developments for those coming out of college or dropping out of college i'm glad to see it is not just new york or san francisco but other cities >> i was thinking restaurants are more and more popping up, especially my home town of philadelphia valentines just over a week away instead of flowers or chocolate,

olive garden wants to you buy bred sticks. part of the dinner special if you want more commitment, domino australia announced a competition for a diamond encrusted pizza ring worth more than $9,000. >> i like it it is create tiff. olive garden should offer those. that's what they do best >> i don't think so. i think you better get the flowers and throw the bread sticks in if you want to >> stocks to keep an eye on. dow futures higher by 155 points s&p is higher.

you can watch or listen to u ve or on the go on the app we are back in a moment. beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected.

to do the extraordinary. take your business beyond.

recap that you need. shares of tesla lower after the stock plummeted 17% yesterday. that fall came after a company executive announced the model 3 s delivered in china will be delayed. shares down almost 2%. anyo ninteno is facing challenges because of the vie vus a delay of the switch controllers. calling the challenges, quote,

unavoidable. >> bernie madoff is asking for a release from jail because he is dying. the lawyer is asking the 81-year-old be released so he can live out remaining days with a friend the latest company to make its debut is casper. pricing at the low end of an already reduced range of $12 a share. arguenal range would be 17 to $19. 9% here pre-market the portfolio transactions include air b&b.

based on current trends, i wasn't that surprised. does that tell you more about investors and the market or the company itself >> i think both. showing that out there because of profitability cost is good you need that. by definition, you are disruptive it should be there that is realized this was a head scratcher. pretty bold on their part. they are almost one-time sales

they have to get out there and prove it and show that they can grow revenues. they have to show that they can ramp it up and raise like they say or get out there or else you'll be punished like everyone else chls. >> the cost a acquiring customers is not getting lower, it is getting higher and how often, do you buy a mattress >> that's the thing. they want to make it more seamless good experience. short term buy it, return it. they want to make it easier. it is a very personal thing. it is not often that they buy

pat reses. they have to prove that they can still grow it's a tough sell. what does that suggest to you yontd even ipo or companies looking for venture capital or private forms of backing >> there are two phases in the venture capital world. it is growth in the beginning. profitability is way down the road first few years, you need growth later stages, the valuations get off. people jump in, you have fear of

missing out. people jump on and the valuation gets out of whack. these are good companies they'll grow into it they have to wait it out they are not short-term plays. you have to wait it out. in near term, you will see these bumps. >> i'm interested in seeing what will happen. we'll move on and see what is going on futures will point us to a higher open to add to the gain going to our guest today brian, thank you for being with us we got news overnight that china is cutting in half tariffs on u.s. imports there is a lot here to digest.

we had a surprise outcome. what do you make of all of it and how do you put it together today? >> when you look at the markets here, you are looking at the all-time highs here. that is a positive for the stocks it looks all positive and rosie. there are still underlying concerns you mention coronavirus and the election coming up in 2020 and tariff cuts by china when investors are looking at that, there is nervousness we are seeing vix, a measure of fear still a little higher than it was to start the year here. some investors a little concerned. interest rates get lower

it is a little worry some. how worried are you? are you talking a pull back or the r word orrecession >> we last used the r word in 2007 it becomes more expensive to own a home interest rates are creaming up we saw in 2007 and 2008, when we saw the inversion go higher and when interest rates go lower, things start to rise the

movement from stocks to bond market gets to be more >> there is a lot of fear but nothing happened why is the vix screaming higher now from a couple of months ago? >> recession doesn't happen overnight. it takes a little time to bleed over to the economy. so right away, we are okay now we are starting to see a volatility rise and rip back up in here in february. that is unusual. stocks should not be moving this

fast some of these big tech names should not change overnight. as interest rates start to go lower. because of liquidity from the stock market and the recession >> we'll have to leave it there. that's it for "worldwide exchange." "squawk box" begins now. a surprise move by china overnight. beijing will slash tariffs on $75 million of u.s. goods. >> the outbreak getting worse. death toll over 500. more passengers on a quarantined cruise ship testing positive we'll bring you a live interview from one of the passengers on that ship. >> tesla's wild week

we'll show you where it is trading now. it is february 6, 2020 "squawk box" begins right now. good morning we are live at the nasdaq marketsite with brian sullivan hanging out with us today. joe and becky are in pebble beach and will join us tomorrow with a huge lineup all starting at 6:00 a.m. eastern. on set with us this morning is liz young, director of market strategy a lot to talk with her