cheap. >> weiss >> teradyne. phenomenal play in chips. >> joe >> nuance. >> we are at the highs of the day, dow is up triple digits that does it for us. "the exchange" starts right now. >> thank you, scott. hi, everybody. welcome to "the exchange." i'm kelly evans. markets at record highs, stocks have recovered all the losses they suffered from the coronavirus. has the bounceback been too quick? casper, the lesson other unicorns could learn from its ipo. rough ride for telecom and it could be a doozy. we'll tell you why dom chu? >> a doozy is that the fact that we've recovered all and more of the coronavirus fears in the marketplace. the market now is at record highs again for key market

gauges, by the way, for the s&p 500, we were up about 13 points, high highs of the days right now. we were just about flat at the low. again, a very generally positive day for the markets in overall let's check out one part that is a huge focus point, and that is the ipo market given some high profile ipos in the etfs up 8% on a year-to-day basis handily topping the s&p 500. if you look at the picture for ipos over the last year, take a look at this it's somewhat underperforming, given casper today and the stock of the day, we're continuing to watch what's happening with tesla shares, that roller coaster ride we've seen, moving to the upside by 4% in today's trade. still, though, almost $990 at the highs here we've moved down through there and back up again. we'll continue to watch that stock. back over to you, kelly. >> pause in the thrilling action for you, dom

thanks stocks areat all-time highs, following a fourth straight day in gains, raising the losses from coronavirus fears. is the rally back on track now or has the bounceback been too quick? chief investment officer at gwyneth wealth management and from wells fargo securities. good to see you both hans, not just this round but frankly the past decade have been extremely sharp what does that tell you? why is it every time we seem to move lower, we snap right back >> i remember a time when the stock market would go down and a lot of advisers would tell their clients, focus on the long term. over the long term the market comes back now it's almost instantaneous. >> wait a few days. >> that's right. i think investors are getting used to this, they expect the market to come back. the resiliency has been unbelievable nothing can keep this market down we went through a period of time with the coronavirus, as you mentioned and also a president

that was being tried, a socialist that's moving up in the poll, yet everybody is ignoring all of that. >> does that concern you you're a value-driven kind of guy. do you like to see this type of momentum in the markets when the etf -- momentum etf yesterday was at all-time highs? >> the market, i believe, goes higher over the long term. over the short term, it could go anywhere we are a little too pricey as the market goes. i would not be too surprised to see a sell-off i'm keeping some cash available to take advantage of any type of meaningful sell-off that occurs. >> what does tell you? does it confirm signals from the stock market or deny them somehow? >> so, credit is very interesting, because it's kind of a mixed bag you have the investment grade market and the higher quality leverage finance market absolutely performingvery strongly, but then you have the fringes, call it cccs, high-yield energy where it's taking a much longer time for that segment of the market to

catch up so i think what it's telling you is that investors are very sensitive to the liquidity that several banks have injected into the market but they're still a little bit conscious on the longer term fundamental prospects, particularly with valuations as tight as they currently are. >> winnie, where do you see opportunity in credit? are there sectors where people can say, okay, energy, for example, the sell-off in oil has been shocking, given what has happened with concerns about china's growth is it overdone do you see opportunities there >> we're still fairly cautious on energy, particularly on the leverage finance side of things. i think in the pipelines, the higher quality parts of energy, there are some opportunities there, especially after this most recent sell-off however, in order for energy as a whole to move higher, you have to see some sort of sustainability, more headlines on the natural gas side of things regarding china and imports, weighing heavily on that segment of the market

so we need to see some things sustainable there. that's not to say that there's no places to put money to work in credit. i think if you have a nuance strategy that focuses on fundamentals, particularly in those single bs that are giving you a little bit of yield, places along the curve that are a little steeper, kind of off-the-run securities, you can definitely capture alpha in your portfolios we're not ready to hold in on high-yield energy quite yet. >> it's been a hard-hit sector what are some of the names in the market overall where you see opportunities for investors who might say, look, where do i go when i don't want to pile in after the tech names >> there are good stocks to buy. two stocks are ibm and adiant, a manufacturer of automobile seats. both of these stocks were very

cheap, very undervalued and ibm, of course, pays great dividends. taking that opportunity to add to my clients' accounts. i'm not adding now but i'm not selling either. >> are you encouraged by the ceo shift at ibm >> i am. this is something that the board should be looking at very carefully and i'm happy it's happening. now, i do think ginnie rominy did make the right moves the ceo change, i think, is a very good thing. >> stocks and credit, depending what investors are looking for, even as we're at all-time highs. china slashing tariffs and half of $75 billion worth of american goods, sooner than anticipated. here to talk about what might be behind this move and what it may mean for the u.s. economy, tori,

welcome. these headlines grabbed investors' attention worldwide what do they say to you? >> it seems like part of the negotiation post-phase one deal. the trump administration announced they would be reducing some tariffs by half and that will go into effect valentine's day. it seems to be part of that natural business we'll see further in the coming weeks how china will fully implement this phase one agreement. >> tori, china hasn't exactly volunteered tariff cuts. they've been hard fought by the u.s. to win. why does it suddenly seem like they're popping up and saying hey, look what we're putting on the table? is it coming from a weakness is that coronavirus related? >> oh, no. it's important to make clear that these are not tariff cuts from the baseline tariffs but a

partial rollback of retaliatory tariffs. the united states did a partial rollback of its tariffs that it imposed on china and china did a partial rollback of retaliation. this is not an improvement of the status quo it's just really undoing the bad that was done. >> how much impact, do you think, the coronavirus has had on the economy there and how is that likely to further impact the trade situation between the two countries? >> the impacts on the chinese economy in the long term are really to be seen. it's too soon to makethose decisions. we need to focus on in the bilateral relationship is how we can move this forward into the phase two and in addition to how we can implement phase one. >> what was the surprise to you, if any, from this announcement today? >> it really wasn't a surprise to me at all i think we were all waiting to see what the reciprocal would be from china happy valentine's day to everyone we'll have a little bit of a

decrease in costs from a few weeks ago. >> to the soy bean farmers, maybe some of the energy producers and so forth as well so then finally, this leaves us moving forward in a period of where we should expect those same sectors to be hard hit from the lack of chinese demand because that economy clearly has taken a short-term hit from the virus, shutdown of most of the economy the last several weeks how big of an impact will that have on the u.s. economy, do you think? >> i think pretty marginal the important thing here i think is distinctful is that this decrease in tariffs will make it easier for the chinese to buy things like soy beans. basically, this list of tariffs being reduced correlates with the list of things that the administration has asked china to buy more of from the united states, soy beans, culture, energy and automobiles. >> makes it cheaper for them tori, thank you so much. good to see you, too

we appreciate it tori smith from heritage tune in on cnbc's special report "outbreak: coronavirus, live at 7:00 p.m here is what else is on "the exchange". >> announcer: coming up, casper investors may get a good night's sleep today as the stock soars is this one-day pop sustainable? plus after a very rough start, uber seems to finally be getting on the right path. will tonight keep the momentum going? and tomorrow's jobs report is going to come with a big surprise

welcome back to "the exchange." casper making its debut, opening at $14.50 a share, now trading to $14.78. bob pisani is live on the floor with the latest. >> very active volume. 8.3 million shares already you can see right here, kelly, 8 million shares have traded that's a lot when you get 100% of the float in a single day, that's a lot. and we're not even at 2:00

essentially. priced to $12. opened at $14.50 trading above that, $14.77, though well off of its highs there have been a lot of issues around this. number of things happening here. investors have pushed back on the idea of money-losing companies. you either make money or get a haircut, to be perfectly blunt about it and then you have the selling to consumer direct to consumer category is challenging. ask peloton or smile direct. the temper, sealys out there they're profitable newer confirms like purple innovations, prpl, those kind of firms are still out there. they make money, too, though barely lot of competition by the way, kelly, we are in a hot market right now ipo/etf is at an historic high right now. uber and lyft, which were laggards last year, doing better this year. >> we're going to touch on that a little later on. bob, stay right there. i want to bring in dom chu

in a way it's psychology 101 lesson. >> oh, yeah. >> making people feel like you can get a good deal and you can get a good first-day performance. >> used to be the wall street 101 playbook, especially companies looking to sell just a fraction of their company. so you price it in at a discount and it gives people a good feeling when the stock actually goes higher and that generates some momentum. there's psychological benefit to it people pour in more. that draws people in people start to say, hey, i can make money there people buy it more it becomes this sort of cycle. you look at what's happening with the ipo market overall, is there going to be a return to that type of mentality hey let's price aggressive, aggressive, aggressive only 10% of our company is public at this price the rest of the company is worth even less. bite the bullet now, price it at

a discount, get the pop. >> my neighbor triesing to do the same thing in pricing their house. >> right. >> some of it is just psychology bob, that said, there's been a lot of focus on money losing ipos and investors aren't interested biotech etfs had their best week in more than a year. here comes schroedinger and ppd going public. >> that's are exceptional, not your run-of-the-mill companies ppd opened at 31 it's holding up pretty well there. biotech research services. if you're a biotech company and you need high-end labs you may not have the money to have a high-end lab, you contract with them to do it. it's an interesting idea and you can see it has been holding up well schrodinger is interesting it's backed by the bill and linda gates' foundation.

it's called computational software, put your drug data in the software program and suggests novel molecules it's been terrific overall one medical last thursday is doing well biotherapeutics, but even reynolds we're talking reynolds wrap here even that has been doing well. all of them are holding up well i agree with dom, by the way price discovery works. they didn't like casper's pricing on this, and they pushed it down. there was no interest in it. priced at $12, opens at $14.50 and trading above that i think that's successful so far. >> bob makes a good point with the drug discovery companies, they may not have the profitability that investors are looking for but have the option on big future gains. a company like casper, you know what you're getting. >> but you know what you're

getting with those binary result pharmaceutical companies as well i remember when i came in this morning, schrodinger i'm thinking schrodinger's cat, is the stock going to be alive or dead? let's open the box and find out. schrodinger's cat is very much alive in this market the fact that it can act the way it is is comforting out there. we are seeing a 2020 start off the question becomes whether or not that can stay that way y yes, direct to consumer companies are going to face some hurdles. remember, this is a hyper competitive industry for a lot of these companies casper is one of them. >> even though these biotech names have done well, there are plenty of flops. we've seen them lose their entire market cap sometimes with a discovery process or innovation goes bad. >> biotech has a high failure rate i'm very encouraged when i see a

company like -- i'm baffled when people say casperwas a failure that's the market operating efficiently. our viewers who want to buy this stuff and people out there saying no, i'm sorry not at that price. interested in much, much lower and collectively say we don't want it, then they have to effectively drop the price now it's trading above that price. i love when dom makes references to quantum physics. >> if you wanted that unicorn status you could argue it's a failure in that sense. they had the opportunity in the past they kind of turned down, maybe to be bought by target, depending on the rumors out there. if that metric was important for them, they're not getting it today. it could be some time. >> the side i think we should be on -- i'm on the side of people who are the nesters out there. okay, it was a unicorn, 1.1 billion and now the valuation is

$500 million therefore it's a failure no the public market fairly valuing something that's out there the public market working and pushing back on something that they thought was too high priced that's not a failure to me. >> hypothetically, this could still be a billion dollar company at some point in the future. >> sure. >> i don't have a crystal ball if it keeps going like this, so long term, who knows casper, you're not losing sleep over it. >> it could still become a unicorn once again dom and bob, appreciate it. shares of twitter on record growth jack dorsey calling improvements to the platform transformational plus more on the coronavirus fallout. what happens when chinese tourists can't travel? worldwide impact and where it will be felt the most. as a reminder, watch or listen to us live on the go on the cnbc app hexcng iba itwo. t texted. she is on her way to our house. what?

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welcome back to "the exchange." pizza hut, taco bell missed on earnings pizza hut being the weakest link, and investors not happy about that shares of zinga are up 13% on strong earnings, analysts highlighting a rise in paid

gamers words with friends, which i still haven't tried, is still one of the stand-ups for the company. maybe i have some time shares of estee lauder are up after beating on the top and bottom line. skin care and makeup were upside drivers. they did lower their guidance due to coronavirus headwinds. up 4% right now. shares hitting a 15-year high after surging digital subscribers, the company saying it will raise prices for digital plans for the first time in nine years. now to sue herera for a news update hello,sy sue. >> hi, kelly, everyone after being acquitted by the senate on all impeachment charges, the president addressed the reporters. >> it's not a news conference. it's a celebration i've done things wrong in my life, i will admit

not purposely. i've done things wrong this is what the end result is. >> the ntsb says speed may have played a factor in last month's deadly crash, involving a tour bus on the pennsylvania turnpike t released its preliminary report on the crash this morning. three tractor trailers, the tour bus and a car were involved in that crash, which killed five people and the new york knicks are close to hiring a former agent as their new president leon rose in line to take over the fired president earlier this week, joel embiid, chris paul, booker, kevin anthony towns and carmelo anthony. back to you. >> thank you so much, sue herera don't go anywhere. we have a whole lot more ahead on "the exchange." >> ahead, the bloomberg takes flight. >> peloton's ride is slowing

down. >> why the world needs the chinese consumer. and the huge revision investors should respect in tomorrow's jobrerts po it's all coming up on "the exchange." 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,

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welcome back let's hit you up on a few stories that should be on your radar today. it is rapid fire dom chu, contessa brewer, and steve kovak, welcome, sir. beat on revenue, had the first billion dollar quarter matter of fact number of users and shares are up more than 17% right now the biggest jump it's had in a couple of years. there's your check, 17.5%. big one, steve. >> this is all about the monetized daily active users, when you boot up twitter, you actually see the ads they struggled with this the previous quarter and sort of switched it on for more people i'm one of those heavy twitter power users. >> yes, you are. i'm enjoying following you, by the way. if you don't follow steve, your parents' home decor. so many enjoyable topics

one of the first times they gave a report of that metric. >> third time reporting that metric. >> is that okay? obviously it's okay with the s.e.c. why do they get to choose when they deploy this metric and they don't? >> that's a good question. it's not like facebook or snap chat reports it's very different. >> why does that matter? if apple says we don't want to report how many iphone sales we're having, we're seeing companies just deciding, hey, we're no longer going to announce those metrics anymore whirlpool said we're not going to tell you how many washers and dryers we're selling anymore because we don't think it's relevant okay then it's not even daily. >> they're no longer users don't forget we'll have to figure out, are they going to be tweeters, are they going to be -- >> what's wrong with -- >> they just said they want to have more empathy now for the people who are using twitter so they're not going to call them users. they're going to call them -- here is my suggestion --

enjoyers. >> they really don't want to make it sound as though they're using a substance? >> in public do you means -- >> but they're called monetizable. that's kind of strange, too. >> it's an oxymoron i bring it up as a pont of conversation. >> the takeaway from the numbers overall, shares are up 17% for a reason is it because of the advertising revenue especially, dom, suggests this is a lasting -- >> yes that's the key answer, yes for snap, for facebook, for twitter, for pinterest it doesn't matter if you're a social platform, you need to demonstrate that you can make money. monetize those users you have on there, show them ads, click on them or have a driving decision. instagram was great during the holiday season about putting ads out there, targeted toward you, ebay transactions or not, that's huge look at twitter as a stock over the past, say, six months, this has been pretty much dead money for a while. the 200-day moving average, the average price hasn't moved over

the course of the last several months all of a sudden today it's way above there. it goes to show you that these stocks may just need real catalysts and investors to know that they can actually make money doing what they're doing and all of a sudden the thesis becomes intact. >> my head is reeling from that fact yesterday that instagram does more on revenue than youtube. >> yes. >> youtube is gigantic. >> 15 billion youtube generated in revenue, most of that goes to the creator. youtube isn't keeping that talk about clodisclosures, we d' know the margins on youtube business yet. >> great point and good day for twitter today. how about peloton? their problems keep piling up. second quarter results with no path to profitability in sight although they had a smaller loss than expected, it didn't stop shares from sinking 11% right now. by the way our parent, comcast universal is an investor in

peloton? this is the quarter with the infamous peloton lady. >> up 96% from 362,000 a year ago, that's remarkable that's a monthly fee that's coming in. it doesn't matter how long ago somebody bought their peloton, how much they use it, whether they use it as a clothesline or not. speaking of metrics that should matter to investors, that's a metric that should matter. >> all that focus on the famous ad with the womanwho got the pel oton for christmas that probably helped the company a lot more than it hurt it because everyone was talking about it and joking whether or not they would want one for christmas. at the same time, they cut their monthly subscription price substantially, it used to be $40 a month. now it's in the 20s. if that doesn't what will. >> that's their plan, is to focus more on getting subscribers than seeing those

revenues coming in. >> the bike is so expensive, that's why you can stream it on your ipad, use your own bike or own treadmill. >> that's the thing. that's the key it's not just the straight bike streaming anymore. you can use it on your smart phone. you can use it on your app for ipads, whatever it is. >> roku. >> all these different things. they're taking those -- in essence, what they're doing is putting more items on the menu to let you pick from all at different price points so some would say that's actually a good thing because then you can get users in no matter what they want to pay. >> you put it on your smart tv and stand there and pretend like you're on a bike >> or there's other exercises you can do there's running coaches now. >> we all know mirror is the new peloton in terms of the high-end sort of, you know, savvy fitness device people want my only question to you as they go that route to offer it as a service, what's to prevent someone else from jumping in and doing the same thing

do they have a moat there? >> you see these fitness brands putting out their peloton clones. >> talk about james bond she had the jump on it. >> that's right. >> right in your living room again it's the netflix of fitness is what they're going for, lowering their price, scale and that's the excitement. >> they seem to have the right model. those concerns about is it a durable franchise in the long run are what's hurting the stock today. let's switch gears and talk about wynn the casino operator is set to report at the bell wynn shares are down 12% since the coronavirus, especially considering they make most of their revenue from a cow what's priced in what are we listening for? >> they're going to want to talk about how they're doing in macau before this in the quarter and what they're getting out of boston and how las vegas is doing and all the analysts will want to talk about is how long

is this macau impact going to be there? the problem is, if you get 75% of your revenue from macau and your casinos are closed -- >> what is the status? >> gambling is entirely closed down. >> wow >> they can still run hotel operations, restaurants but who is going out to eat at a casino right now? and also they don't have the influx of visitors it's not like anything is happening there. visitation is off by about 80% you've seen jp morgan chase and bank of america have downgraded the stock right now. you're seeing refinitive and s&p figure ratings looking at the credit and saying if this continues, they're at risk of default. >> geez. >> and so, look, they're in a bad spot on the call today what we'll be listening for is how much cash do you have on hand to weather this storm what kind of protections have you built into place to be able to deal with this kind of -- it's not just that their revenues are down. remember, they're having to pay

salaries, utilities and all these fixed expenses. >> keep it going. >> harry curtis is estimating if this continues you'll be out like 100 million per month. >> wow >> paying for costs. >> so that's the bad part of the story. >> oh, there's a good part. >> that makes me wonder why the share is only down 12%. >> right the interesting part about that whole discussion, it's going to happen with mgm, las vegas sands, anybody who has any presence in macau. does this represent a buying opportunity? as with diseases in the past, they fade and the economy there and global ly, human kind continues to assent. >> once it continues they want to go back. >> fighting human tendencies right now toward gaming and entertainment. and we know that those do really well especially in cultures in asia where they do really well the issue, you brought it up, how much is already priced in? it should be down more if all these scenarios are being priced

in there are investors out there who are saying to themselves, whoa, five years from now, seven years from now, this could have been like a generational buying opportunity. >> can i point out when you look at other casinos, take las vegas sands, founder and ceo chairman buying up a ton of shares when the price plummeted. some of what you're seeing in the stock price might not have anything to do with the sentiment of coronavirus as you're saying, hey, it's cheap at some point it's coming back and we're going to follow the leap. >> there's some value there. fair enough. consumer dna testing agency is facing a dilemma. we talked about 23 & me laid off 14% of its staff now ancestry will lay off 6% of its workforce. let's bring in chrissy farr. how do they come back now? is the problem just that everybody did one of these tests? >> yeah. i actually think that's the

exact problem. you've got a certain chunk of people who want to get these tests. they think it's fun. they want to find out more about their family and health risks and then there's the rest of us. for a lot of people it's really hard to sell them a $99, $200 test that they really don't think they need. these companies are seeing that. plus they've just seen plummeting sales in the past year and they've got a bunch of theories for it, but a big one -- this is just my opinion -- i think it might be privacy concerns. >> absolutely. >> all these stories you saw about facebook and all these tech companies, i think that actually ended up having a bigger impact on the businesses of ancestry and 23 & me. >> absolutely and dna is so much more personal than your photos or text messages. >> oh, my gosh, yes. >> so of course people are going to freak out about that. >> 23 & me's ceo did say she thought privacy was behind it. the interesting thing is that company has gone forward,

developed a drug based on the dna of the people who have submitted for it they've now gone to human trials with a spanish pharmaceutical partner. it will be very interesting if you can start making money instead of on the tests themselves, on what you create from having that massive database. >> my gosh, what about the consent? did all these people say, hey, use my stuff >> they did. >> yes, that's great will everyone else do that too i have a real problem telling a medical company you can take my genetic material and do whatever you want with it, without any kind of regard to what it means for me or my family or privacy or anything else down the line it is something that i think will resonate with a lot of folks out there. by the way, even the defense department they came out and said don't do these things. >> yes, they did and what else do we know that they're doing with this data >> so, they're using it for clinical trials. they're using it for pharmaceutical products. 23 & me said they're hoping to

develop drugs. ancestry told me yesterday they're thinking of shifting a lot of the future of their business to the health care side and not the genealogy does it tell you you're allergic to celery all these things about privacy, do we know our dna or dna data is going to be used to help these companies develop new drugs and, frankly, should we get a cut? >> can we take it back i mean, it's clever and devious. i don't know if they meant to do this at all from the start but hey, submit your information by the way, we're going to keep it and be off to the races with it. >> i took one ten years ago and now i'm realizing, whoa, i shouldn't have done that i thought it was cool. it was on sale for $99. >> did you find out anything good >> 25% more likely than the average person to be obese look at me. >> putting on a few pounds, face

hair we've seen that trick. chrissy, thank you so much dom chu, contessa brewer and mr. kovach, thank you, guys. llusbot details and what i tes aut the u.s. economy. that's next. if they saw you on the street would your advisor recognize you? at ameriprise, we see you as more than a client. that's why our advisors care about what's important to you. they offer personalized advice to help you prepare for what's expected and even what's not. giving you the freedom to live financially confident. because to us, you're more than just another face in the crowd. with the right financial advisor, life can be brilliant. ameriprise financial.

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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. welcome back tomorrow we get the much-anticipated january jobs report well, it's expected to show a gain of about 158,000 jobs last month, it's also expected to show a major loss of american jobs as well steve liesman has that story steve? >> kelly, thank you. the government released its annual benchmark revisions and the preliminary estimate they'll allow half a million jobs that americans consider to be really out of work. biggest since the 2009 recession, around turning points you can see that here. the model did not pick up well the '09 and 2010 recession and

didn't pick up the rebound very well since then we've had very limited revisions until right now. the trouble is that the u.s. economy is not really supposed to be in a transition. or maybe it is the sector where the most change is expected include leisure hospitality, 175 changes going on there maybe some of the air bnb stuff happening there, professional business services and total goods trades could be part of the manufacturering problem and then retail trade down 146,000 the most likely source of the recisions, the government estimates number of businesses that open and close. what the model may not pick up, among other things, is big changes like in the retail sector where store closings were not accompanied by openings because of online sales, kelly. >> come on over. >> looks for one store to close, one store to open. that's not what happened last year. >> this is fascinating all sorts of conspiracy theories, you can stand, about what exactly is happening inside

the u.s. economy wait a minute. if we're shedding half a million jobs relative to what we thought, then maybe things are much worse than thought. and, by the way, it also explains why there was so much division over whether the economy was slowing down or not. remember the fed rate cuts >> certainly the number of jobs was overstated, that's for sure. month to month change won't necessarily change but the level is going to come down the trouble is that when changes are happening ♪ economy, we saw there on that chart big transitions, from expansion to recession, back into expansion the model doesn't do a good job of that. last year, my understand is the model would open a new retail store for every one that closed. do you know what really happened last year? >> my guess is no retail stores opened. >> like the biggest closing of retail stores ever 4,000 stores opened, 9,000 closed. >> wow i thought we were turning a corner there.

>> we might be the data for this month is better, but these are early days in the year. we don't really know yet we know there's transition going on there it's tough to pick up. there could be -- it's other employment sectors that the government is not seeing, that's not picked up. right now the idea is half a million down and we'll start again from there. >> that is fascinating steve, thank you, as always. steve liesman. posting double-digit gains so far this year are the ride-sharing companies pulling off a comeback >> announcer: gasoline consumption in the u.s. fell 1.5% in the week ending january 31st 'sheif consecutive year-over-year drop. 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

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uber reporting its fourth quarter results after the bell remember their net losses topped a billion dollars last time around since then, the stock has rallied nearly 40% despite ceo saying he doesn't expect a

profit until 2021. dan, great the see you why is ride sharing suddenly looking better to b investors? >> i think it benefits in part because these were two of the worst performing ipos. it created the impression by the fall that expectations had come down a lot and maybe there was just some upside but now uber's up i think today is three month gain is like 37%, which is enormous and you know, sets up i think some really high expectations going into the day's print. >> i wonder, too, how much goes back to these remarks from the ceo of lyft recently who had said he was going to change his company's stance to a match and follow position on pricing is there kind of a tas id understanding that they're not going b to be undercutting each other on price >> it makes business sense for

them to understand they're in an ol goply price wars hurt both players and nobody really gains from it. so i think as both companies have made the right sounds and give iing the business to some n of rational level, i think that's been encouraging to investors and part of what's brought the stock up the end of 2021 is still a ways out. the expectations they face now to show much lower operating losses and still a lot of growth, i think it sets a lot of marks for them to hit. so i see the socks as still risky. >> at the same time, i could see investors getting more comfort wbl them if there's this idea of that price competition won't be as intense as it was if that's the case and the public or regulators start picking up on this, does it become a risk to the stock that they could see further regulatory pressure in the next couple of years? >> i think that's always a risk with these big tech companies now, especially uber

i think one thing that underpins uber a bit is the fact it's so large and it's almost like a default taxi service now i think regulators are going to look at that. they're not nearly the size of google and facebook and amazon that are getting that scrutiny, but they're in the position where they could have that kind of dominance over this key market so i don't think uber gets the luxury of being in a place where they're going to be free of that skutny even though their numbers don't match these other tech giants yet. >> fair enough and they've run into the issues in kcalifornia they're still tied up in some litigation before we go, i wanted to ask you b about uber eats. what are investor's expectations around the business now. >> pretty strong from what i see, bookings are expect ed to come over a little

over 60% for this quarter year over year which is a big number baugh you've still got private companies out there like door dash that are still, they're competing hard to get share because they've got to go public and show good numbers for that so this works against the rationalization theory especially in the kind of food delivery business which has been incredibly irrational up until now. >> dan, we look forward to what the report after the bell and have to say b about all these lines of business. thanks for joining me. dan gallagher with "the wall street journal." first it was the u.s. trade tensions, now the coronavirus. a look at how a major slowdown in tourist travel could affect economies around the world next

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the lexus es. eagerly prepared for the unexpected. lease the 2020 es 350 for $389 a month for 36 months. experience amazing at your lexus dealer. chinese tourists to the u.s. and other countries had already slowed but now the coronavirus is threatening to make it a lot worse. what happens when chinese tourists can't travel? >> oxford economics is already forecasting the u.s. to experience a loss of 1.6 million visitors from mainland china this year due u to the coronavirus. tha significant for new york,

san francisco and los angeles that have benefitted from the rise in chinese travel over the past decade. even with the decline you saw last year, china's still the third largest source of travel to the u.s. and the biggest spenders on average spending about $6500 here in the u.s. compared to the 4,000 spent on average by other foreign visitors everything from food and beverage, shopping, tickets to national parks, so they play a big role in the u.s. economy >> not just in the u.s. either i remember going to iceland when it e seemed as though every other tourist was a chinese traveler >> economists say most pain will be felt in asia where we've seen a surge in chinese travel over the past couple of years rising middle class. more discretionary income on vacation and trips to many companies like thailand and japan. these economies, they really depend on tourist. if you look at tieland, 10% of

gdp comes from thailand. indonesia warning it could see a $4 billion hit because of these travel restrictions so there could be pain for a lot of these asia b ben economies this matters because coming into this year, it was that these emerging economies would rebound. but this coronavirus complete ly challenged that. >> i remember hotel ceos last year saying the loss of to some extent, just international visitors in general was ripple ing across the industry. they've got to be frustrated now over this especially >> last year, the big challenge was trade tensions a better u.s. china relationship that would receive a rise in travel but now we have this coronavirus that could change that estimate. next week, we get earnings from hilton on tuesday, trip adviser later in the week. that could provide more commentary and clarity as to how these big travel companies are sort of estimating the impact o

the coronavirus. we've heard from the cruise companies now we're going to look to the hotel and lodging companies. >> that's going to absolutely be something to watch that does it for the exchange. thanks for tuning in i'll go join tyler for "power lunch" which starts now. >> kelly, thaupg very mucthank y much welcome, everybody here's what's new at 2:00. today on "power lunch. stocks are back at record highs today and the major indexes on track to end the week up nearly 4% so the question has to be, has the market snapped back too far too fast plus, check out the first trades of the former unicorn, casper, as it makes its debut on wall street after slashing its valuation in half. dropping its debut price investors aren't falling asleep on this onef fulone. we have those details. and later, life after iowa while bernie brings in