>> live to the granite state for results and implications for invoeftos. the ceo describing it as short-term gain. "sy,awk box" begins right now. good morning we are live from the marketsite in times square. let's look at u.s. equity futures. futures are indicated higher the dow up triple digits with a gain of 125, nasdaq up by 50 and the s&p up by 15 all three major averages were

higher the dow gave back most of those gains. let's look at what's happening in the treasury market comments from chairman powell yesterday, you'll see the 10-year above 1.6% >> an update on the coronavirus, now over 45,000 cases confirmed. >> i think it is a low ball number >> multiple of what? >> i think there is probably more than 100,000. >> so a multiple of two. >> we don't know we don't anybody can conjecture i wonder what it really is we said 40 some thousand and the

deaths so far? exact number, really 1,116 people another number i wish we knew was accurate when you don't know, then things you hear are seeping out this and that and it instills more fear than if you had a real number now affecting the pharma company that says supplies will start running out by the end of the many because of compounds that are made in china. parent company of gucci is shifting production to other

companies. fox co foxxcom will resume some production by the end of the month. and boeing says they are expecting this to affect their numbers. and we'll speak to two people on that cruise ship quarantined >> talking about the number of cases in singapore now three more new cases bringing the total to 50. singapore with lent public health system will provide more information than china. in china, you have had people waiting outside of the hospitals sent home. people with false composite tifz >> does it instill a lot of confidence when president xi

says this really restrictive policy and we are worried about our economic prospects almost saying we'd like to relax the restrictions even though we are still worried about it >> president xi has not been to wuhan. >> i know. almost as if it hasn't happened. >> it is a lot of dots to connect where you get a slow down in the united states from this >> some of them seem like they are connecting now we don't know. the 2020 democrats are turning their attention to nevada, north carolina after senator bernie sanders victory in the new hampshire primary. the field is smaller after kayls

now. kayla? >> reporter: with the projected win in new hampshire and popular vote win in iowa, senator bernie sanders emerged as a front runner in new hampshire where he won 60% in 2016, his lead is just about two percentage points. sanders pulling in 25.9% buttigieg with 24.4% and amy klobuchar taking 19.8% she was not tracking anywhere near that just a week ago but thanks to high marks on the debate stage, she has earned significant amount of votes from moderates and undecides here who told us they were looking for someone with moderatepolicies who wouldn't going to be

spending the type of money sanders or warren would be here she is. >> tonight in new hampshire, as everyone had counted us out, even a week ago, thaurch pundants i came back and we delivered >> the most surprising development here is the fact that elizabeth warren and former vice president joe biden did not reach a high enough threshold to secure any delegates they are leaving with zero delegates from this race biden is in south carolina where he has pledged to turn attention to votes from people of color and in nevada where he has seen significant support among the lati latino community there he is hailing a diverse elector

rat. we'll see if that plays out. donors are figuring out if they need to reallocate their support. the race is getting smaller as of last night. we did see suspension or termination of campaigns by andrew yang and senator michael bennett. there are still more than a handful of people in this race and still a long way to go before november. back to you. >> in terms of just the takeaway and where bernie sanders stands and amy klobuchar and the split being progressive or more moderate, is there a general take away? >> i think that, if you had seen sanders and warren both towards the top of the pack, you would see there is clear support for these progressive platforms.

the fact that buttigieg and klobuchar together taken 50% of the vote shows in new hampshire where the largest block of voters wants the party to go in new hampshire, about 45% of voters are registered independents certainly, they would have leaned more toward moderate. sanders won this state handily in 2016 with 60% it is notable he saw nowhere near that support this time. >> i think 27% from last night is the lowest win you've ever seen in new hampshire. >> yes certainly new hampshire is a state that has tended to favor the candidates who have new england roots. it did benefit sanders but not to the extend anyone thought it would. >> talking notable the former ceo of goldman sach

taking to twitter writing if dems go on to nominate sanders, the russians will have to reconsider who to work for to best screw up the u.s. sanders is just as polarizing as trump and he'll ruin our economy and doesn't care about our military if i'm russian, i'll go with sanders this time around >> the view from wall street at 11:52 p.m. >> sad to see eating your own. really sad >> stop, stop. >> internecessarying fighting. maybe he'll come around. >> you may have recalled in the russian party. i mean the republican party. >> still hanging your hat on that >> there was a debate a couple

of years ago with the system, you might remember >> i don't know who this guy is. he confronted don jr. last night and said why did you think it was appropriate to meet with the russian embassy. still on that. b.s., you can't help yourself. >> no. >> where is my popcorn >> and saying wow, the russians have a tough choice to make. do we stick with controlling trump as puppet. >> that's good >> it is sad to see the interparty and trump party battling stocks to watch, shares of bed bath&beyond plunging hit by increased promotions.

falling traffic. they said there was some really good promotions. now i'm thinking why didn't we check things out >> same store sells dropped 5.4% >> traffic is still dropping >> they sell a lot of stuff there. >> they do

>> your husband sent me there once to buy a grill master >> you remember that thing you fill it with water you told me where to get it. >> didn't say bed bath, beyond and barbecue some people go for the barbecue, we go for the duvets to feel safe in bed. >> humidifier. >> what about the netty pot. >> i love a netty pot. >> how do you clean that disgusting pot >> interesting, you can do it in the dish washer. >> do you do it every day? >> no. but how you should do it if you are being aggressive

the one that is good is the navage >> maybe we should start doing it >> there is a whole influencer economy on instagram shares of lyft tumbling. topping $1 billion for the first time investors focus more on profitable after uber moved forward with expectations. green didn't update the profitability time line but did make it clear it is among the key themes for this year >> caller: we expect to deliver continued strong, top line growth in 2020 as we've discussed on prior calls, three key themes. first, product inowe vacation, second profitable growth and third is leverage. we'll talk to an analyst on this

a little later >> what did darryl say when he was here in terms of moving up profitability. >> they intend to be profitable in 2020. >> they did not indicate that they can get there >> both of them make this pivot. i wonder if this means those prices will go up. no more of this killing each other and battling it out. >> there is a rationalization going on you'll see higher prices and less competition >> is that urban areas you can now sign up to become like a diamond member. there is membership programs and other ways where you are paige more for better services

moving you up to black cars as opposed to straightup uber they are doing a lot >> they are doing things to move you up to the black cars, what does that do to drivers driving an uber x? >> themarket for these kind of rides right now is still growing so fast that there is enough, if not more business. you need more cars on the road than less, which sounds terrible >> all of this still to come stocks pushing to new records frmt futures indicating higher the dow indicated flat s&p 500 set new records. both of them indicated higher. futures indicated up

some names it buy and all-time highs will be next >> a programming note for you. don't miss the interview with ceo david solomon coming up at 4:00 p.m. eastern time >> announcer: today's big number, $14 trillion that's the total household debt in the u.s it grew over $600 billion in 2019 making it the biggest annual increase in 12 years. make fitness routine with pure protein. high protein low sugar tastes great! high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes

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the s&p and nasdaq finished at record highs. what stocks can you buy or should you buy with us now with a couple of stock picks. it really shouldn't be a profound stock to buy stock at a market high. they are participating in good

companies and well run, they should be at highs no one in my experience buys stocks at 52-week lows knowing they will turn around. stocks at new highs, hit new highs. this is not that profound. >> fair enough >> lockheed martin is not at a 52-week high >> a little less than the s&p, which is 19 times. up like 50% last year. valuations are much higher >> what else has lockheed fundamentally got going for them >> i like defense in general trump would like more but i don't think he'll get it they have on like the hypersonic missiles, they are the best player the government will spend more money on that.

the sikorsky helicopter. future looks bright. a lot of contracts still to get. >> some nice boards for you. >> i'm impressed >> how about netflix which is n all-time high? >> not cheap here but what i do like, if you look at overseas growth, you have 25 million. >> that's what the stock feeds off of >> right and/ and organic content. they are losing friends and they are getting more organic content. >> there is a lot of growth in

europe did you have anything to watch in davos >> we didn't have time to watch anything >> when you go back to your room >> i didn't turn on the tv the entire time. >> i'm watching german language law and order. that's why netflix should be good the rest of the world needs our programming because their programming stinks >> it is in german the stuff they had is from like 50 years ago >> german tv is weird. >> only in america monster beverage

>> yes the caffeinated sports drink for some reason is in the sports drink. >> they need some hard seltzer can you mix alcohol with that caffeine >> we'll have to see on that >> we don't have elements for this one >> that's profound right there >> why not you are not recommending microsoft at all >> if you look at valuation -- >> that's not what of your picks today? >> i wanted to stay away from big tech today

coming up, softbank surging after a seven-month high we'll bring you a live interview with two passengers quarantined on the japanese cruise ship. we'll show you what it is like to spend two weeks confined. some people say it is like spending two weeks in your bathroom doesn't sound great. we'll be right back. at fidelity, online u.s. stocks and etfs are commission-free.

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welcome back softbank shares soaring overnight after the u.s. approval of sprint's merge with t-mobile don't expect the gains to last long after the close in tokyo, third quarter profit was nearly wiped out from the loss of the vision fund posting an operating loss of nearly $1 billion. saying it gained about $3 billion on investment as the losses were for ending in december and he's been saying

there is a turnaround since then the vision fund is marked. so that's the question it is interesting, we didn't get to talk about this the $47 billion valuation we all talked about for wework. we all talked about as something they were marking up themselves. they had never marked the entire investment >> what is it worth now, five? >> i know. the high water mark there. >> he's saying we didn't lose $42 million. the majority of their stake was never there. >> never that high tell us your real numbers. i think the headlines and how they described it is a little by

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welcome back to "squawk box. take a look at u.s. equity futures. dow looks like it would open

about 134 points, nasdaq dak about 55 points higher we are playing the music from law and order. first nissan has filed civil lawsuit. seeking an initial amount of $90 million. seeking to recover credit card damages inflicted after, quote, years of misconduct and fraudulent activity. >> the way that we cover 130 points is so blaze if it was down 130 -- it work. right now is 29,276. we are closing in on 30,000 in the face of coronavirus.

this is either something really scarey or something really good is being discounted by the markets. do you know where th is? 30,000 potentially we called that 5,000 building. once it hit 5,000, it went right back to 2,200. but nasdaq 5,000 was in the

stratosphere okay, now we can get to your -- this is a bad story. we can talk about elizabeth holmes did you read that book >> i did >> interesting >> so you read >> i do read the second half was way better than the first half. >> you don't federal judge has dismissed charges. ruling the patients were not deprived anything by using the blood testing services and no evidence that holmes directed doctors to misrepresent theranos services to their patients the judge did uphold other

charges. that all reads very strange to me i think she had full knowledge of what was going on >> she does. part of what her lawyers were arguing is that it false negatives were not affecting anybody. >> one of those out there on the west coast >> in california >> are they? >> i think so we are going to give 80 years to roger stone but send her off. >> this guy is unhinged. >> that's true too >> what is going to happen this is like gross abuse

you must be scared >> is he going to get hardened unshackled now >> i didn't say a word honestly, washington post has a piece that even republican governors thought there would be something on his pace. i'm going to for you >> when we come back, stuck at sea. a cruise ship in japan still under quarantine we'll speak to two passenger oz that ship that have been quarantined the entire time. >> will we'll get some numbers you can watch or listen to us

live on the go or on the cnbc app. we'll be right back. ♪

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welcome back as of this morning, global cases top 45,000, the death toll is at

more than 1,100. >> reporter: china reported the lowest number of new coronavirus cases since late january confirmed cases dropped in half and this indicates positive changes. these fall being numbers seem to back some comments we heard here in china who said he believed the peek would be here in late february the optimistic comments go along with a shift in attitude of what the government wants to priorities president xi called this a people's war the economic planning agency is

saying these local restrictions put in place with many factories are inappropriate and inconsistent for an orderly resumption of work an economist saying that china promised to reach its targeter for 2020 of doubling gdp as well as income. this economist said they would reach that target and only needed 5.7% growth this year to meet that goal on line, people are still quite skeptical. they are happy to see these falling numbers. they want more hard evidence before getting back to the routine of life. >> we'll check with you soon shifting things on the ground there. thousands of people remain

stuck at sea in japan, the coronavirus that sickened passengers on a sit a week ago remains in quarantine. standing at 174 people now identified with the virus. joining us from the ship gay and fi philip what is happening there? >> i don't think your numbers are right. there were another 39 cases. i believe one of them is one of the japanese quarantine officers on the ship early in the first days of the outbreak we are over 200 cases now. those numbers we hear from the captain over the loud speaker are terrifying with that curve

going up just like china >> you've been confined to your room have you been able to leave your rooms at all >> no. not really they are trying to make time for people to go on the deck we haven't been taking advantage of that, we have a nice balcony. we want to see the people stuck inside to get out and get some fresh air. we think that is more important the whole strategy of the japanese government. they are letting some people who they claim are the most elderly and vulnerable off the ship.

they do it behind plastic wrap and fire engines so the press can't see. it is prove that this has failed and they are usitriage >> when you hear this, originally there were 3,700 people on board. do you feel trapped in a place where you are going to get infected with this >> we arequarantined with healthy people and sick people in the same place. i understand the japanese want to protect their islands, for us on board it is not very helpful.

we believe everybody needs to come off we have not been tested beyond our temperature on the first day. if they are healthy, get them off. they were able to end the quarantine after four or five days we've been here eight days we take our temperature once a day. voluntarily. we are supposed to call if our number go temperature goes up. >> have they given you any guidance as to whether you'll get off the ship >> they say the 19th, if we are healthy. >> the 19th? >> it is a 14-day quarantine

they say we are all safest here. if that's true, why are they offloading bus loads >> we have had hundreds of new cases since this started it is not making sense >> i've seen from the cruise ship line you'll be refunded everything and offered another cruise would you go on another cruise >> we've kicked it around. the financial offer from princess is generous but a lot of people are losing income or they have children that are being cared for elsewhere. there is all kinds of expenses for people that's not the point we are healthy

we want to go home safely. we have an accepting hospital in florida that will take us under quarantined conditions they are letting certain people off, we want to go we hope you'll keep us updated on what happens when you're allowed to leave. >> thank you for your help. >> we're not going anywhere. >> we'll be here. >> help get our mess angels oag there. >> thank you we appreciate your time. please let us know what is happening. >> ten days ago scott said vaccine is one thing i. takes awhile but a point of contact test and that shouldn't be that hard to do it shouldn't if you could immediately test someone they have where it takes

two or three days but why aren't they using that to find out who has it and who doesn't >> 14 day quarentine. coming up when we return, lyft shares dropping an analyst has a buy rating and just raised the target check out shares reporting results a minute ago on the top and bottom lines we're back in a minute dana-farber cancer institute discovered the pd-l1 pathway.1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere.

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joining us to break down the numbers is the senior research analyst. he reaffirmed his buy rating why? our numbers went up so forecast for 2021 in particular increased and is positive. we're just taking down our target multiples so we still see a solid upside to $62. >> did you want to hear him say we were going to reach profitability sooner. >> i don't know that he needed to i'm not sure that uber really needed to. they just put out an aggressive target and upped the ante last

week when they gave this aggressive time line lyft didn't take the bait on that they sounded very, very confident. i think the words were truly confident that they could reach the target. >> which would you prefer right now? >> we still like lyft better because we feel like the visibility is better it assumed that the competitive environment rationalizes it even further and not based upon regulatory so we don't dislike uber per se. >> it's a 20 second answer, becky's question earlier to me prices are going up across the board. >> consumers. >> they are and so far we have not seen it into growth yet for

these companies. they're leaning hard into corporate and enterprise much less price sensitive, you know, they're taking the uber excels and the big suvs and yeah generally speaking and it's going to be the typical leisure traveller. >> total addressable market. >> trying to capture it. >> thanks. appreciate it. >> i'm going to tell you what jay powell saiabt d outhat next. stay tuned you're watching squawk box on cnbc liking the now platform?

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take allegra-d... a non-drowsy antihistamine plus a powerful decongestant. so you can always say "yes" to putting your true colors on display. say "yes" to allegra-d. bernie sanders ups the ante by calling out campaigns funded by billionaires. reaction straight ahead. >> plus should consumers be concerned about their cell phone bills after the t-mobile sprint deal that story and your latest corporate headlines as the second hour of squawk box begins right now.

>>e to squawk box i'm andrew rosssorkin. u.s.res are up in a big way. up over 100 points right now dow at $121. or up 122 points rather. s&p 500 up about 13 points nasdaq up about 51 points and we are closing in on some big numbers. a lot to talk about. market starting to price in an interest rate cut here the fed chair did not say yes but he also didn't say no and on that topic, steve is at the table. >> good morning andrew fed chair jay powell heads back to the hill today.

it's in good shape and also his concern about the coronavirus. >> we know there will be effects on china through some part of the first half of the year and china's close neighbors and major trading partners in europe and asia there's very likely to be some effects on the united states it's just too early to say. >> several fed observers believe the fed chairman was ever so gently pushing back against the markets pricing into a fed rate cut this year. when he said the policy isn't going to remain appropriate and they rely ona material reassessment of the outlook. he said quote, powell's soft talk against a rate cut. guess what, markets didn't really hear all of that. they barely change their outlook for fed rate cut 53% probability for july going all the way up to 80% by december maybe july is down a few points. december is about unchanged.

we maintain our call for one more rate cut in june. it's how much they expect the coronavirus to inspect the economy. that's not it's preference it never is. the case for a cut has to be very clear and i would offer it is not yet very clear. >> i feel like you're here every day saying hey, people in the markets, investors, listen up. all of these things that you're anticipating may not happen. >> i'm not sure that it matters that much just yet what concerns me is when the mark gets way over extended believing that a rate cut is coming and when i'm pretty sure that it's not. then there's a sharp reckoning in that the rate cut is priced out into june and it's a 50 peculiar probability i have a portfolio that's, you know, it's up to 30,000 on the

dow, whatever you want to call it and i have to hedge against that and that rate cut serves a bit as a hedge if things should go south >> that probability keeps going up but i'll tell you this, powell yesterday very neutral. last year i was in san francisco, she said i don't think there's a cut coming i can tell you we have a lot of fed speak coming next week and so we'll get a good feel for where the fx omc stands. >> let's bring in experts to talk more about this monica is the global investment specialist and amy is the head of derivative strategy welcome to both of you let me ask you why do you think we're seeing these numbers out there that the fed is going to cut rates later on is this some hedging activity that's taking place? >> well, i think part of the

problem is there's still the hope in the market it makes it so that if this doesn't happen they're quite cheap. >> it will be cut. >> if that does not come true the tail in the option market to own that hedge is quite cheap because i think that people are under pricing the fact that this might not happen or frankly that the coronavirus or some other tale in the market is going to be worse and priced in that we haven't had the ability to value that. >> it's still a long way to moe bit about why we continue to trade at new why is that happening in the face of all the questions? >> you go back 12 or 1f fears ie market earnings growth. what will the fed do and everything we're hearing is

yes and they will come back to market if needed later in the year you can be more enthusiastic about equities. >> what do you see in terms of investor optimism or the idea that people want to offset the risk with hedging. >> the way i would characterize it is that everyone is very underhedged but it doesn't mean that they're not bearish it's simply just been a problem of we have been in the bull market for how long now and people can't carry the premium so the people who are trying to hedge, they're all doing it through some sort of mitigation. so it's either, you know, selling to offset this or pairing in different calendar months but it's not that they're not bearish. it's simply that they don know when. >> anything else good happening in the country wage wise >> earnings growth is better than people thought. >> not just the fed.

>> no, she said that too if we see growth start to stumble it's a different story. >> positiveon deregulation and any of the taxes. >> don't have a recession and strong consumer and the consumer in the u.s. remains strong so it's hard to be that bearish in the fundamentals unless you see that. >> what do you like in particular monica? >> the challenge is how do you find value in this market when multiples are near the higher end of the range we look to what's happening in china. there are sectors that have massively underperformed like energy and like consumer names that are tied to china i'd be cautious about going into the airlines now.

but those are one time factors built in and back up to two and the average person that i'm talking to is to steady. if you get that too steady this year you don't get that rate cut. that's going to be okay with the market if you tell me that we're closer to one without a rate cut that's another story. get back up to two you have this earnings rebound and i'm hearing better things about earnings double digits, is that right >> high single digits if growth comes in better than expected you could see double digits. it's a big question mark and how that impacts q-1 and q-2. >> if the best case scenario plays out and things start to taper off in china, maybe that kills off this coronavirus for now. what do you think happens to the overall market >> this is when you look to trade or buy this dip is when you see the rate of infections which is what's happening. so if these numbers are real you should be looking now to get invested. >> so when you say buy the dip

you mean the dip in coronavirus. >> exactly. >> what else would you tell investors to do right now? >> i think if these things kind of go by the wayside then selling calls in your portfolioing in a world where yield is hard to come by it's a simple way to look when you have very full valuation. >> great to see you both thank you. >> weekly mortgage applications were out a few minutes ago low rates have sparked it. let's get to diana in dallas with all the numbers good morning >> mortgage lenders were busy last week. increased 1.1% compared to the recent week that according to the seasonally adjusted index. now it drove the volume rising 5% for the week and a remarkable 207% compared with the same week one year ago and that's the high

yes level since june of 2013 mortgage rates began falling a month ago as fears of the coronavirus hit financial markets. rates are hovering around a 3 year low the average interest rate with conforming loan balances rose slightly to 3.72% to 3.71% with a 20% down payment. they were 16% higher compared to the same week a year ago tha thanks to fierce competition price gains have begun to accelerate and the lack of affordable homes is clearly keeping some buyers on the sidelines. back to you guys. >> very good thanks coming up, is tesla is the ultimate esg play? we'll speak to ainvesting is a factor in the fall of energy stocks first check out the shares of cbs. they're now trading higher on a

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that's one of the first socially responsible investment criteria you look at what's happened to the energy sector in terms of the stock price how much of that do you think is a function of the move among some of the big investors? >> well, the sharp drop this year is clearly clouded by the coronavirus demand cuts that are

foreca forecasted but longer term i think you see an impact of investors moving out of energy stocks this is even more pronounced in our view in europe where you see quite a difference in valuations for large european oil companies versus u.s so this is a big long-term factor. >> they announced they were going to die vest all the fossil fuels. do you think that strategy is a good one because i have mixed views of it personally >> i think that this is a value judgment investors are making on their own and in our open end mutual funds where we have all persuasions and political views we don't want to take a

political view but we do make judgments about which companies are doing better job than others and esg criteria whether it's carbon capture, water usage and so forth so i think that you can pick better energy companies the risk of complete divesture is that if the stocks rebound for a period of time, you can lag quite badly. >> also to me there's two issues there's the lagging issue which is a real con none drum but the other is to the extent that georgetown has a view on that if that's their view they no longer have a seat at the table which is to say that potentially what you could try to do is invest in the companies that you think are actually on their way and making the journey to sustainable energy if that's their ultimate goal and if they can push some of the companies that are going that way to go there faster potentially it pushes the rest of the energy.

once you say you're out you're out and you have no choice left. >> absolutely. >> i would say this is related to another important subject the engagement topic is very important. but there's the other issue. as the stock prices go down the cost of capital goes up and if you have a company that wants to transition and you see this in the utility business too if you keep raising the cost of capital to the transition, are you really helping the country >> everybody divests tomorrow i'm not sure, first of all, for better or worse we're going to need fossil fuels for a long time unless you think we're going to start building nuclear energy plants around the country. >> strapping them on the back of an airplane. >> we do not and think that divestiture is a good idea

we don't have that strategy. and we just try to choose the companies that are doing the best and managing and so forth. >> which companies >> well, you can look at our holdings but there are companies within the energy sector that are much more progress i have and particularly when you look at fracking this is a, you know, very positive for the u.s. but there's issues with frankly water usage and if you look at some of the companies they're doing a much, much better job of managing water and so forth so you have to really engage in the companies that you suggested and understand what their strategies are and what they're doing to minimize the impact of their activities. >> so my worry as you might imagine is that people are either going to get out of or divest on an individual basis or

a larger institutional basis and to the extent that you're trying to move things forward that it doesn't happen because the cost of capital goes up >> what do you do about that >> as asset managers and as a cio we have different strategies for different types of investors. now as i said, we don't have a divestment strategy. but if other investors came to us and said look we want to invest in companies that are helping on decarbonization having an impact we can do that as well. so i think it really depends on the investor goals. >> you're con flating water usage and particulate pollution and all of these horrific environmental things that obviously we would like all energy companies to be involved with with clean water and

renewable water but carbon captures are minimal at this point in the industry. >> absolutely. >> either you acknowledge that there's still going to be co-now i'm doing it now i'm calling it carbon instead of carbon dioxide. either you think it's okay to continue to use it or you don't and if you don't then start walking the walk and sailing across the ocean, walking to work, all of the other, no cows, all the things that you want to do instead of the talk about water this and water that. either you think hydrocarbons are still going to be around or you don't. >> look i think carbon and oil and energy and gas are going to be for decades. >> how do these companies that serve this very important purpose in making the world

run -- third world countries, the quality of life that we enjoy, how do we divest from them and lead them on their own to provide the world with energy. >> well, you're describing things to me that i didn't say. >> don't go halfway. you either go all the way or don't. you either really woke or you are just talking woke. >> no, what we are is investors and trying to buy the best companies in each sector and there you can discriminate on which investments are better than others. everybody is trying to >> they have to at least talk the talk. >> the ones that are actually doing it and if you can get them to do it faster, it forces

everybody else. >> all of those down in louisiana that still can't fly with all the oil on their wings. >> now you like it. >> the big guys. but the question is -- >> you're pushing vp now you are an inigma. >> thank you, appreciate it. >> my pleasure. >> see you later thank you. >> when we return, new hampshire feeling the burn but is senator sanders the right candidate for your investments we'll talk about his rise in poll and what it could mean for stocks cbs trading higher a better than expected earnings report don't miss cvs health on the closing bell this amp. his thoughts on the coronaoutbreak and much more squawk box will be right back. >> time now for today's aflac

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yesterday a judge approved the merger of t-mobile and sprint in order to pitch the deal the companies promised to deliver 5-g coverage to what percentage of the us. population by 2024? the answer, more than 90%. welcome back to squawk box a couple of news stories this morning. lyft posted a $356 million loss for the final three months of 2019 bringing the total loss for the year to $2.6 billion still on track to become profitable by the end of 2021, but that disappointed investors punishing the stocks take a look at bed bath and beyond it fell a greater than 5.4% in december and january due to

increased promotions and lower store traffic and inventory management issues. that stock is down big and samsung is out with a new line of mobile phones including the latest attempt at a folding zone does have a little bit of a crease as you know talk about that. before we head to a break, take a quick look at where futures stand right now. we're in the clean 120 points higher on the dow as we were closing at 30,000. s&p 500 looks like it would open up higher. you can always watch us and listen to us live on the go. stay tuned youwahi sawr tcngquk right here on cnbc and etfs are commission-free. and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk

we are taking on billionaires and taking on candidates funded by

billionaires >> but we are going to win because we have the agenda that speaks to the needs of working people throughout this country health care is a human right not a privilege. the wealthy and powerful will start paying their fair share of taxes. >> former goldman sax ceo tweeting from the yacht. i don't know that actually but sweeting after the speech if dems nominate sanders the russians will have to reconsider who to work for to best screw up the u.s. because working with trump has screwed up the u.s. so much sanders is just as polarizing as trump and he'll ruin our economy and doesn't care about our military if i'm russian i go with sanders

this time round. it's not a good look when a billionaire is fighting we liz beth warren and bernie sanders this is a direct threat to your bottom line and your income and it doesn't help you at all if you're going to make tweets like that that actually give sanders ammunition to run ads against you, to attack you from the stage. your tweet will be seen by thousands of people. >> that was going to be my first question to you.

it's such a weird election season what is more likely? a republican voting for a socialist or a democrat voting for a billionaire? >> well, that's the challenge for mike bloomberg right now is that he is gaining and gaining and gaining. every week he is going up by the time he gets to super tuesday he will be over that 15% threshold to earn him some delegates you can see it between buttigieg and bernie and bloomberg.

and he is into the debate and does and it goes in a matter of days the expectations are incredibly high and it's not until march 3rd and he forgot the agency that he ended up running >> i think he forgot >> i mean biden, when you said three bs you didn't say four bs. that's in the wrong direction. >> it's a one-on-one contest

so it's easy to get over 50% and his entire debate and should never be in campaigns again and joe biden has performed worst. and he hasn't had a single effective debate performance and it clearly added to her numbers on tuesday the democratic performance, these debates matter they took her from a distance place in some polls to a very strong third and she is going to be able to compete but the one candidate that i'm still watching because it is unclear

where he goes is viable and that's mayor pete. he is raising more money than the other candidates he's got a moderate presentation for a progressive message and a number of those on super tuesday. he is the only young candidate in his race. >> by the way, i don't think he gets the nomination. i don't think he gets the nomination. >> how come -- >> the vp candidate. >> maybe but no we all focused on it and take a good look at her and say well >> all of a sudden they take a good look at him i think the same thing happened to amy klobuchar.

he's got the money and the message and a record and there's too many democrats in focus groups too many of them that will not vote for a billionaire and with bernie sanders and elizabeth warren attacking them be bloomberg can get it and the rules are there. >> cannot vote on the first as you can on the second. >> it's got to be what bloomberg has seen

it will be a disaster and one message that most important question are you better off today than you were a few years ago? recording down says yes and only 31 or 32% say no these are the best numbers for any candidate seeking re-election. >> maybe a coandidate >> put it all together >> two of them, i don't know. >> who is the end result i want to know

he is well ahead of anyone else in the betting market. >> and i think he has the lead and that's why you have a vice presidential candidate that usually balances these people. that's why you have to look at sanders trying to find a woman and by the way, this is really important. we assumed that elizabeth warren's vote would transfer back and forth between bernie sanders. what actually happens is that her vote transfers back and forth with amy klobuchar there's a significant percentage of the female vote that wants a woman nominated and we asewesum it was all about ideology. no, it's about gender. and that's another reason why amy did so well last night. >> so could sanders pick a vp that would allow him to win the presidency >> yes, i think that it's way

too close to call. most surveys have the democrats winning the popular vote but donald trump doing very well among those swing states that he needed we could be setting ourselves up for exactly what happened in 2016 the democrats win the popular vote and donald trump wins the electoral college. >> really going to happen in november isn't it? we'll know all of these things. >> then what will we talk about? >> aren't you glad you grew up to be who you are just because of this election it's going to be unbelievable, right? >> this is going to be the best election in my lifetime. i owe someone for that i'm going to have to shave at some point. >> i thought this was a playoff thing for like the major league baseball that's why you were doing it now. put your hat on backward anyway, thanks, frank. we'll see you around. >> thank you. >> squawk box will be right back

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one of those parties is our next guest the former counselor of the ftc and currently distinguished fellow at the georgetown institution and has been a very vocal critic good morning. >> good morning. >> i know that you're worried about consumers with this transaction itself but i also gather that you're worried about potential knock on deals that will happenas a result what do you mean >> absolutely. it's one in a any normal foc and doj would block. it's also one that any normal trial judge would block but despite the mountain of evidence

that this merger would lead to higher prices and less choice, the trial judge completely ignored it and he saw this case through magenta colored glasses. >> we can relitigate that case but we're not going to do it now. what do you think is going to happen as a result that you have a problem with >> oh, this opens the flood gates to every and all mergers and not just horizontal mergers but vertical mergers as well because horizontal mergers which are mergers of two companies doing the exact same thing, right? t-mobile and sprint both provide mobile wire lesser vis horizontal mergers are looked at more skeptically because you're combining two of the same entities so if you're going to open the door to this kind of merger of the same companies, imagine if you have companies like the at&t and time warner merger. >> yeah but the government tried to block that deal. >> well. >> so thatis why i'm not too

skeptical of the position that this administration and frankly if the democratic administration comes into play, is it going to be any nicer about any of this stuff in the future. >> well, look, it's absolutely true that trump policy has no rhyme or reason and it's all political. i think the reason that the department of justice went and blocked the at&t time warner merger is because of cnn and the reason they let this one go here is because the president is close to the head of softbank. >> this is what they say in our hyperpartisan era judges act like politicians they give credit for resisting political pressure and green lighting t-mobile's merger with sprint the decision will boost wireless competition and accelerate america's 5-g build up

you don't agree with that. >> that's nonsense let me tell you what the judge did here. >> okay. >> you have an opinion in the wall street journal editorial board has an opinion too is that okay >> that's fine but let me tell you what the judge did here what the judge said he ignored all of the evidence of higher prices and he ignored evidence that t-mobile and deutsche telecom executives wanted to merge in order to raise prices and instead he said you know what i believe him, t-mobile has always been a maverick and they'll continue to be. >> that's not exactly what he said. >> that's exactly what he said. >> that is not what he said. he said both sides pull out all sorts of experts he doesn't have a huge amount of experience in that and it's a case of two competing crystal balls. those are the words he used where both sides come and they make all kinds of ridiculous statements of things that can't be proouven. >> but he also said in his words if you read the entire 170 pages is that in the end he believed

t-mobile because it had been a maverick in a four carrier market would do the same in a three carrier market and that's what is false. the incentives change. >> i just want to say he listed experts on both sides. this is what judges do in all sides. to say he threw it out and he went maverick with all of this he came up with the side he thought was most believable. he said i got lots of different opinions from both sides. >> there's one problem with that. >> it's becky. >> the law says that if a merger will substantially lessen competition it has to be blocked and the judge ignored that. >> no, he did not. >> that's not what he said >> trust me. i read the decision. i know what he said. >> i know. >> this case turned on whether he believed that t-mobile would continue to be a maverick and

not act competitively in the third market he basically saw this case through magenta colored glasses and he virtually ignored every single piece of evidence that the government put forth he basically bought what the company said lock stock and barrel i think he ignored the law the other thing he did was he talked about how this was a dynamic market and you can't look at this market like you look at the milk market and agricultural markets are pretty dynamic too. >> two things and we have to go. it's a longer conversation but i just want to make two points one is if you really read the 173 pages there's also the possibility of dish coming in. now some people say that's going to be so insignificant that they can't be a maverick and the other issue is that the marketplace that at&t and

verizon occupy right now doesn't actually have a third competitor in sprint and t-mobile so it's a real competitive there is actually an argument there. i think the bigger question is what kind of precedent does this set one way or the other and i have to tell you, i think it's a jump ball because i'm not sure if it sets any precedent i do hope that you can come back and continue. >> thank you when we come back as the coronavirus outbreak spreads, u.s. health experts are rushing to find ways to keep americans safe we'll speak to a doctor that's very much involved in the process after this break in the meantime, check out the futures at this hour it's been higher all morning long dow futures up by 104 points s&p futures up by 10.5 of closing yesterday. the nasdaq up by almost 40 points after it closed at a record yesterday as well we'll be right back.

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>> our next guest will be part of that conversation joining us right now is the former director of medical and biodefense preparedness at national skusecurity council. thank you for being here today. >> my pleasure. >> what can you tell us about what we know right now in terms of the potential for this to actually become a pandemic. >> even though there's a lot that we still do not understand about this virus, the features are very concerning. we continue to see an expansion in the number of cases both in china and globally and there's several countries that are yet to report cases. and we believe that there's no reason to believe they don't have cases already given the transportation hubs between them and china. >> so what -- >> go ahead, sorry. >> so the features are very concerning for a spread. >> what should the united states be doing right now and how far are we along that path

>> so the response has been very robust to date the cdc is taking significant steps to improve the introduction of a large number in the united states but more needs to be done to deploy rapid diagnostic tests to the point of care more testing should be done. including people that may have symptoms but no obvious linkage to china assuming that other cases are going to come perhaps from other places other than chi china. how long will it take to get something like that in place?

and those that develop tests day in and day out and also have their tests validated so it can be ordered just like any other test in the health care system. >> watching the number of cases pick up in singapore where it happens to be very warm weather in the 80s right now, how much do we fall back on this idea that we hope things die out when it gets warmer and when it gets to be spring and summertime. >> so we cannot contain an epidemic with wishful thinking and even though it's true that some viruss wax and wane there's no reason to believe this virus is going to abate in warmer months given what we're seeing in singapore >> i want to thank you for your

time >> we'll hear from senator rob portabout what he thinks and later big tech under fire again. the ftc broadening it's probe into the acquisitions. don't even have to be scrutinized. less than like 94 million made by companies like hulu and microsoft and other tech giants enquk x merit t what it means wh sawbocos gh back we're carvana, the company who invented

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what the sanders surge means for your money new hampshire feels the burn but how will markets react as the democratic race rolls on. >> and the hidden corporate tax increase in the white house's new budget we'll tell you who could be paying more in the years ahead the final hour of squawk box begins right now

>> good morning and welcome back to squawk box here on cnbc live from the nasdaq market site in times square i'm bill kernan with becky quick and andrew ross sorkin the dow is, i wouldn't say closing in but between 49 and 30 triple digits. the nasdaq has 10,000. excites i guess. it's aways off but it's actually seems to move higher every day in the morning, the s&p indicated up 12 and change treasury yields at least gotten back to numbers where it's been used to when the ten year gets down and it looks like it might go below that again and then you're worried about approximgll growth and everything else >> a couple of big stories that investors are going to be looking at this morning. drugstore operator cbs health did beat on the top and bottom

to lines for the latest quarters and you can see the stock is now up on the news however i hate to always sound like however, a full year eps outlook that falls largely belocon census the stocks go up close to 3 october that you don't want to miss us. an exclusive interview with the ceo. also opec cutting it's 2020 oil demand growth forecast citing the impact of the coronavirus. this is the 6th time its downgraded and it's also lowering it's global economic growth forecast. this time to 3 f% for the year d then take a look at the favorite store, bed bath and beyond, maybe not favorite enough because we haven't been hanging out. up 25% this morning. sales were down and greater than expected 5.4% in december and january an increased promotional pricing. lower traffic in the stores and issues with inventory

management >> the biggest thing is traffic. i don't know how you turn it around particularly when you're already getting people in during the previous quarter. >> people keep saying sorry. we don't sell beds. >> they're going right here and they're going amazon. >> they don't sell beds. >> i know. >> the bed business is a terrible business. >> although it's cool to get a bed that comes in a little box it's fun to get one just to see how that works, which we did. >> have you done it? >> yeah. it came. >> very heavy. that's pretty cool you have to admit. >> it is

>> good. >> it is safe to say that the gop was probably more excited about the roll out of president trump's new budget than congressional democrats were but ironically one constituentcy that might not be too happy is the business community. >> the president's budget devoted $1.4 trillion to extending the individual tax cuts but it doesn't put any money toward preserving corporate tax breaks that are scheduled to go away i tallied up more than $150 billion in tax hikes for businesses that are coming down the pikement the biggest one is it changed the way companies expense rnd. they can deduct the expenses immediately starting in 2022 businesses have to spread the cost out over five years and that amounts to a $120 billion tax increase companies will also soon lose the ability to fully deduct the

capital investments and there's bipartisan agreement that this is a pro growth tax break. it starts phasing out in 2023 and goes away completely after 2026 that one is a roughly $38 billion tax increase it will go up. this is jet fuel or the booming economy but now the white house is telling me that it's the priority of 2020 and whatever becomes tax cuts 2.0, the risk for businesses is that it's no longer potentially the political will to keep these alive. back over to you. >> elon thank you very much. talk of more tax cuts brings the conversation back to the trillion dollar deficit. joining us to talk about the budget and tackling short falls

is the ohio senator rob portman. he serves on the budget committee and also budget director under president george w. bush >> so those are permanent. they're part of the tax law until changed. it's about 14.5% of the budget which is the part we appropriate outside of the fence. >> education and things like that so that's the message this year

is as the president said he is not going to be touching the major entitlement programs and social security and medicare in particular but he did want to get to a balanced budget over 15 years which he does in this budget and that's how it is done the reality is that we have to do something in a bipartisan way. that's the only way that it will happen it's just not sustainable and democrats are saying we want to add to that. so the medicare for all, there's a right group and left group that looked at bernie sanders proposal there they're going to come in north of $30 trillion. and i think everybody acknowledges that. >> how frustrated are you that it's a republican administration and their own plans don't tackle any that you just entioned

i think it would be smart to have a group together so that they have ideas out there. it's the biggest issue that we face we have a great economy right now. revenues are coming in this year protected rev knews will be up 4.9%. it's not about revenues. they're increasing up and above the historic average as a percentage of gdp. >> let me ask you a couple of things in this budget. presidential budgets are always infamous for relying on budget predictions that never pan out in 2011, obama's budget actually

called for 4% growth that's not a number they ever got anywhere near. how likely do you think we'll see 3% growth for the better part of the next decade? >> well, the budget projections are always a little rosy growth numbers were way too low so they are accurate when the administration says that cpo and other forecasters have been way too slow in terms of the revenue projections and you're right it's a little rosy in terms of economic growth. >> let me throw one more at you. the idea that our debt costs won't increase that we're not going to see higher rates over the next, i don't know, 10, 15, 20 years on some of these issues.

>> how likely is that? these rates have been here for awhile but is that a fair projection. >> i think people would have said no. the economy is hitting on just about all cylinders and you have what you think would be wage pressure and so on you have wages going up. wage increase of 3% or more. to see that again and so it hasn't effected rates so my sense is that there's some new economic thinking out there which is when you look around the globe and when you look at the united states rates are staying low regardless of growth rate >> we saw that the president acquitted by the senate now we're seeing some of the things that the president is doing. he's mad obviously and he is exacting, i think something

might -- they're talking about another impeachment at some point. should the american people think anything is going to get done with the way the two sides are right now? the president on one side and democrats on the other ripping things up -- obviously nothing until november but even after november, how is this ever going to be something where we move forward and have people on both sides of the aisle voting for the same thing. >> the partisanship is discouraging no question about it but in a way, it's in the interest of both sides to do exactly what we ought to be doing which is to start to pass legislation. if you're nancy pelosi and looking at the house majority what can you turn to as a real accomplishment one will be prediction drugs, same as the republicans over here and obviously bipartisan and the

unanimous vote here in the senate on that issue and we're working on it but my point is i think in a way all the partisanship is discouraging and, you know, the war of words is nothing can get done. and it's to try to actually accomplish them. >> are you an uncomfortable republican senator with the president or are you comfortable now? are you going to vote for him in 2020 >> you keep eminding me of that. >> i'm helping him and i'm endorsing him. i cannot believe the change we have seen in terms of our economic growth. >> right. >> our regrowth, restoring our military, a lot of great things. >> i think the president could be reelected and i'm very pleased in terms of the tax reform and not just the tax cuts but reforming our tax.

we talked about that earlier and just making america more competitive again and so wages are up you have this 3% up year to year there's a lot of good stuff going on do you think you made a mistake the first time >> i did endorse it and then after it came out, you know, look, i think that the point is going forward we have to figure out how to pull together the country and solve big problems and we talked about the mandatory spending lots of other issues out there how we deal with that. and training challenge that we have the number one issue right now is we have a great bipartisan bill called the jobs act you get that back on track by providing short-term training programs and recognize

credentials so they can get into the work force there's a lot of areas where we can do things together. >> senator, it's great to see you. >> thank you for having me on. >> we hope you'll come back soon. >> thank you. >> coming up, when we return, the ftc says it's going to investigate past deals by the biggest tech companies including apple, facebook, microsoft and alphabet does this spell danger for shareholders or an opportunity to jump in and buy as we head to a break, take a look at shares of coors rising this morning better than expected earnings and revenue though it does caution significant head winds and continue volume deincles up 5% right now. stay tuned you're watching squawk on cnbc

when it comes to your business internet, which is more important? ♪ ♪

okay, i wish i didn't have to choose. like the more i think about it, the more i want to jump to each room. what if i said you can have it all? ♪ ♪ comcast business gives you connectivity that goes beyond. that's what we want! that's speed, reliability, and security, all from one provider. touchdown! get started with internet and voice for an amazing price. call today. comcast business. beyond fast. dow up 137 points higher the s&p 500 up and the nasdaq looking to open up about 50 points we have it on the screen there

a new survey shows vehicle depend blt that means millions of new vehicle owners are happy with their choices. and want to know whether you have driven it yet. >> you have. >> yes and it doesn't have the range that you'll get with the tesla model s. it's a little bit too soon to know for sure but it's a nice beginning point and they say they'll have more electric vehicles and that this is just the beginning. >> i know. i just want one more. >> they're number four in the survey this year in dependability. >> how can it be a turbo if it's an electric car.

>> it's not. even they admit that when i talk to porsche executives say think it's the name that would fall under the category let's market it by using the word turbo because porsche is so synonymous with sur bow and other models that they said we're going to put this in there. >> thanks, phil. >> look i love this survey from j.d. power because it's based on the responses from the owners themselves the top complaint remains. so it's just not working whether it's voice activation or bluetooth technology continues to be an issue here. so who is number one well, surprise, it's a new

company that people are probably going to say what? genesis? the hyundai luxury brand this is the first year that it's in the survey. it comes in at number one ahead of lexis a nice move higher by buick that comes in at number three this has the lowest complaint rate among any of the brands it was just five years ago that hundr hyundai launched genesis who is at the bottom of the list there's 32 brands ranked here and of the 32 brands, dead last is landrover this is interesting. they have struggled with reliability in this for a number of years and yet they're seeing record sales in the united states more than 94,000 were sold last year attribute this to fantastic styling. wonderful marketing. this is a must have vehicle in suburban america especially from the well to do or those that want to be part of the well to

do and i know what people are saying, where is tesla where is tesla tesla is not ranked and that's because j.d. power does this survey after getting access to vehicle registration records and auto makers all say sure, you can ask for it from the dmv in various statesa does not give jr that access. >> that's the -- and i still kid people about that. and yet i know people that have these and they buy another one. >> it contributes to the styling of the market in this status. >> if you have one, you can afford one that's part of it. don't you think? >> out in l.a. everybody has a nice top of the line black one and it's like i wouldn't be able to find my car in the parking lot. which one, you know, you have -- >> they're all over the place. they're all over the place in

suburban chicago and suburban new york you see a lot of them. >> thanks, phil. thanks for playing along the ftc announcing that it's going to examine acquisitions that alphabet, amazon and facebook as well as apple made between 2010 and 2019. joining us for a look at how this could impact the tech giants the portfolio manager and investment committee member at the wireless fund and the senior technology reporter at buzz feed >> is this surprising? we heard that a lot of these companies could see an upstart that has a lot of potential.

it would be easier to buy this company just to not have the emerging competition does that actually happen do you think? should regulators do something about hat? but for the big company there is something that they're interested in with this and they want the people, they want the technology and they have been very successful acquiring that over the past ten years and that's what the ftc is looking into. >> so is this a normal process that should be allowed to happen in the evolution of echnology?

wi can we do something? >> it's amazing that they want to look ten years in the past to figure out which acquisitions may or may not have been involved with some wrong doing. >> what we're going to see going forward is that the ftc is going to say if the big tech companies are making smaller acquisitions maybe we need to look into that more deeply i don't think it would be a bad idea. >> would this cause you to do anything differently in terms of the investments that we're talking about? >> so of the big 5 i'm actually worried about regulatory constraints particularly with facebook and google over prief

sy >> i would buy this dip. >> do you think there's going to be a genuine problem this investigation is going to go anywhere? i have to say the whole thing makes no sense to me to actually go back and try to look at previous deals it's very hard for any regulator to actually -- this goes to the t-mobile deal to look into the crystal ball that's the job you're being asked to do. these transactions were relatively small i'm hard pressed to say there was a known view that it was inescapable that somehow these were going to be successful

deals. so i don't even see how it's possible many of the smaller companies already dissolved into the bigger companies there's people working on products and founders have left and technology is so deeply imbeddedthere has been no regulatory oversight if they see there's smaller deals then they go ahead and say we want to examine them but this

whole threat of them dissolving and unwinding acquisitions that have happened over the past ten years it's probably easier for them to unwind instagram from facebook than some of the smaller ones that we see in general, we heard a lot of money managers recently say i want to own big cap and that means that i need to own tech and obviously that's why we see the markets up every day do you have any trepidation at this point not -- i'm not even talking about regulatory issues. i'm just talking about if it's such a big part of the s&p and it's so overloved and overweighted do you have any issues with that what would you buy instead >> i have a lot of trepidation about it and even when you peel back the onion these five companies and scatter a few others are enormously important one of the things that i think you have seen in the most recent

round of quarterly earnings calls is that you're starting to see beyond a regulatory threat you're starting to see the law of large numbers really play you had a situation where pretty solid results from facebook and google they go down after the call because when you're that large you just can't keep growing and particularly they have to meet these new revenues for privacy and that makes me worried about the larger names so stay focused on tech but look for value opportunities. specifically smaller caps. >> great thank you both we appreciate it. >> thank you. >> coming up, china's big screen shutdown and the hit that could be coming to hollywood if the coronavirus continues. we'll talk about the risk for the biggest studios and media investors. jim cramer today tweeting the china gdp is going to 1 to 2%.

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coming up the portfolio impact sens senator sanders came away the big winner last night. different ways the contest could unfold from here and what the different scenarios could mean for the u.s. stock market. a reminder you can always watch or listen to us live on the go on the cnbc app. you can do it now. stay tuned you're watching squawk box on cnbc this piece is talking to me. yeah? so what do you see? i see an unbelievable opportunity. i see best-in-class platforms and education. i see award-winning service, and a trade desk full of experts, available to answer your toughest questions. and i see it with zero commissions on online trades. i like what you're seeing. it's beautiful, isn't it? yeah. td ameritrade now offers zero commissions on online trades. ♪

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we bring people together to seek pragmatic solutions. bloomberg: i'm mike bloomberg and i approve this message. bernie sanders coming away the winner last night in the first in the nation primary. nbc news projects the vermont senator will edge out former south bend indiana mayor pete buttigieg. sanders won nearly 26% of the vote buttigieg scored 22% amy klobuchar scored with 20% of the vote while former vice president joe biden both came in fourth and fifth place respectively >> for a look at how the markets and investors may react to the new hampshire primary and the next contest, i want to welcome

founding partner and head of u.s. policy of cornerstone macro. good morning to both of you. >> good morning. >> are you in the lloyd blankfine camp i'll start with you. and what that will do in the market in a very negative way. do you agree with that >> the camp that i'm in here, they're looking at the democratic primary as almost a win-win-win scenario for the markets because what i hear consistently is if democrats decide to nominate bernie sanders for president the market thinks that president trump is near guaranteed to win

re-election. the final scenario is if sanders surge fizzles does that give room for a moderate. especially more and more questions coming up about mayor mike bloomberg and that's positive for the market. so the way i look at this is that the market is viewing last night's results as a positive. and something to stay invested for. >> the implication -- >> not necessarily i think if there's a protracted battle or a sanders nomination i think the market is betting that this is trump's election to lose especially as they look at the economy. they do think if there is a moderate, if there is a mayor bloomberg or someone else that could kind of unite the opposition trump is in trouble but we take off the table some of the policy swings that might come with a sanders nomination or a sanders presidency. >> and where do you stand? >> well i agree with that

characterization of where investors are. that's exactly where investors are. what i would suggest though is investors may have to change their minds a little bit right now bernie sanders is beating trump by about four points and if you look at the average of the polls nationally and in the key swing states and if he's going to go on to win the nomination he's probably going to be ahead by more than that a month or two from now so i think the idea that he can't win is wrong he could winment he probably won't. i mean, i agree with the consensus he probably won't win but i think that the market is going to have to confront the fact that i think most likely as he gains wins and gets the momentum that comes with that, the favorable press coverage and the legitimacy that comes with winning a nomination that he's going to gain in the polls and he's going to look like he has a real shot at beating trump. >> and he's going to ruin the economy. do you think that's right? >> i think he would do a lot of

damage to the economy but from an investor point of view it's clear he wants to reduce corporate profits so you have to take that into account and a lot of what he is proposing would reduce potential gdp and then of course you have big sectors that bernie sanders is targeting specifically. >> was blankfine saying that the russian backed trump because that was their way of ruining the economy? so are they just really bad at trying to ruin the economy by -- >> no. >> the economy did not get ruined right >> no.

>> there's democrats that are just true never trumpers and democrats that would eventually vote for bernie sanders and sometimes when we're discussing this everything will be gridlocked in washington anyway and won't be able to get all of these policies through he won't be able to have that big of an impact do you that? >> we look at the history of the united states in recessions anne united states psident or reelected president and for a politician the thing that they care abouthe

sanders presidency and we are facing a recession, what are the policies congress is most likely to adopt unlocking consumer spending and has had a lot of debt. do we see it change related to housing and are we going to have more comfortable support for housing? something that would stimulate the economy. i'm not blind at all to the real regulation that he's looking for in energy, health care, financials but i think that you have to balance that off of the desire for members of congress to keep their seats and a desire that would be there to change any potential weakness in the economy. so a continuation of fiscal stimulus, unlocking consumer spending even more something positive for housing i think those are the sectors that are going to see a boost

even in a potential sanders administration >> if i may jump in on that, i respectfully disagree on that. to give you a look at what happened historically is that president's use recessions to push the agenda that they wanted to push anyway and if you look at what president obama did, you go back to bush, he ran on the exact same tax cut it looked like the economy was doing very well. so i think that the idea that cyclical fiscal policy is not born out by history. they use the opportunity, never let a crisis go to waste that's the way every president both parties approaches something like a recession and i think that bernie sanders put the pedal to the metal on his agenda if he's president of the united states. >> it's a longer debate guys thank you very much. >> thank you

>> need to decide who to pick between trump and sanders on who will ruin the economy more >> i don't know. if i'm russian i'll go with sanders this time around to ruin the economy. >> i said it as lloyd saying the russians went with trump because they thought he would be more favorable to them. this time they're going to get something favorable to them and somebody that's going to ruin the economy. in that perspective. that's how i read it >> okay. >> cases of the coronavirus confirmed around the world

the death toll at 1116 china and boeing warning it will hit the airline industry profit this year and another industry taking a big hit at this point is newly exhibition business julia joins us with a look at how much the virus is hurting theater chains and studios good morning, all 70,000 movie theaters in china are shutdown it leads to a loss of $3 billion in ticket sales in the first quarter alone. the u.s. based company seeing the biggest impact is imax it's stock is down over 16% this year it has over 680 theaters in china with 30% the revenue coming from china. the chinese box office has $9 billion in ticket sales and was

on track to surpass the u.s. this year and become the world's largest box office but so far hollywood hasn't felt much of an impact because they were blocked from being released during the lunar new year holiday. now we're seeing jojo rabbit and sony has delayed the china debuts scheduled for this week and the biggest impact is at the end of march when disney releases mulan which was really targeted chinese movie goer plus disney has black widow coming in may and it was expected to build on the success of record breaking avengers end game which grossed almost $600 million in china. even if theaters do open up next question there's still questions about how those chinese theater chains will handle the log jams of all of these. whether audiences will still opt

to stay home back over to you. >> how would it effect the movie industry outside of china? is that possible that that would happen as well or are we just worried about lost revenue in china? >> well, for now, the analysts are really focussing just on china. there's of course a question about whether people in neighboring countries if there are a lot of coronavirus different examples of the coronavirus might stay home. in hong kong they were just recently talking about singapore, whether there might be other countries where people opt out of going to crowded public spaces but for now to real focus is on china. >> thanks. a reminder don't miss our cnbc special report tonight called outbreak, coronavirus, make sure to tune in at 7:00 p.m. eastern for the latest on the virus and the global impact on the markets >> when we return, we're going to set you up for today's

trading on wall street take a look at the futures highs of the session and they're very close to giving the dow a new record at the open i believe that the magic number for the dow to hit a new one is 139 points right now it's up by 132.5 points when we come back we'll be hearing from a top strategist on where he is seeing the biggest investor opportunities and risks right now.

welcome back to "squawk box. we're at 138 right now for that to happen separately while fears of the coronavirus are still front and center, our next guest says that it will not affect the strong u.s. economy joining us paul zensky, cio of multiasset strategies and solutions at voya investment management how many dots are there and how many are connected on the way from the coronavirus to our economy here >> there is an awful lot >> a few are connected we can see it, we can see some problems if certain things happen >> the first quarter data is going to look poor everywhere around the world you it will be a "v" shape. you want to be figuratively and literally as far away from china as you can and the u.s. economy

is about as far away from china as you can be in terms of exports, impact. we're not seeing growth in coronavirus cases, the fundamentals are great, stay invested >> i "v" shape is probably the right scenario the question is when, how far out this goes. >> given what we know today as to the spread of the virus, second quarter, second quarter is when you see the "v" you see people going back to factories and remember that durable goods which are the biggest part of spending are postponed, not canceled i heard someone talking about movies the movie industry is going to be hurt by what's going on in china, because once you skip the movie, you are never going to see two movies the next week if you need to buy a refrigerator, you'll still buy it in two months' time that consumption doesn't go away >> can we use the recent history of what happened in the trade dispute with china as kind of a blueprint for how we look at this, and the reason i'm saying that, china slows, exports to

china are only whatever they are. >> right >> but then we talked about all of the supply chains that go in and out of china, and the rest of the region and what happens to australia and europe and everything else. why aren't those concerns the same they can come home to roost when it spreads out of china to other countries? >> because the tariffs were permanent and this is going to be a temporary, it's a tragedy in their markets and country, but from what we see today, it's not spreading around the world it's not hitting the major economies. so whereas the tariffs were a big hit. >> and we worked our way through that, too. got the 2% and stayed at 2% and the markets continued to trade at new highs as well you would think this is less of a headwind >> again, from what we see today, absolutely. >> just in terms of where we are, and we were talking about off camera, if there was a time to notice the valuations may not be totally organic, maybe it's fed-induced, maybe it's a sugar

high from keynesian, what is his name milton keynes >> there is a congressman talking about milton keynes. >> anyway, so -- >> so when we talk about stocks, we never talk about stocks alone. we talk about stocks relative to something so we're asset allocators stocks are fair to a little bit cheap relative to a 1 1/2% ten-year treasury. the peak is 60 >> it's supported by underlying earnings growth. >> yes and also the fed has come out basically as candid as they can say to say we want to see inflation rise and we're not going to do anything until we see it and if you think about it, if you can't raisin flation right now, when can you raise it you have to make hay when the sun is shining the economy is strong. the fed's got to let it run and as long as the fed lets it run, stocks are going to go up. >> what do you have the s&p forward multiple what is your calculation >> what i'm looking at right now is 18.5 on our data.

when it gets to 20, i'll start to worry a little bit. not a secular 20% decline, more like a pause right now relative to the other assets, the s&p -- >> stay with risk asset, stay out of bond markets. anything else other than the s&p? >> no, i think the s&p has got the right thing, domestic stocks and if you think about small caps, small caps have twice the industrials. don't buy small caps they have twice the industrial exposure than the s&p. you don't want cyclicals >> they're domestic. >> they're cyclical and have less bargaining power. >> multinationals you're fine there. >> i'm fine there. >> thanks, paul >> sure. ♪ jvoya ♪ >> yes, great company. krm krm jim cramer is standt the new york stock exchange. i saw your tweet you think china's gdp is going to 1%, 2% >> yes, it's kind of shut down the prevailing wisdom on wall street the last two days is

things have peaked, downtrending cases, upgrade today of lvs and wynn i don't know i don't mind waiting a little bit to see if it's peaked. i'd like to see both cruise ships of carnival get docked we have one of course off of yokohama western holland american line is looking for a place, it's been five places that no one will take it. it t doesn't have any illness on it when the western dam gets a port i will feel better >> you know, it occurs to me we keep talking about this v but we're talk being vs in the economy. there has been no downward start to a "v" when you are looking at our stock market >> for us, there's no supply they bring that casper, the unfriendly ipo on and it makes it so that nobody can do a deal. we have a lot of good growth shopify with an amazing quarter, tremendous growth. we have great growth in some tech companies

we don't have new supply because of the fact that you couldn't bring a casper it's kind of a nice situation, it's not bad not good i don't want to see any more outbreaks and people are too confident. >> we're out of time but i ask you quickly, beth, bath & beyond call this temporarily trouble. >> they didn't have guidance why revise guidance if you didn't have it i have to give that ceo a real spanking. >> would you buy them? >> yes >> you're going to buy a bill bed, bath & beyond today >> i would buy it. there was no reason to guide, absolutely no reason to guide. there was nothing to change their guidance there was no guidance. i would fire all their lawyers, i would fire their chairman. i would put some new people in, and i would say enough is enough don't tell me what to do >> jim, see you in a couple minutes. >> okay. they didn't have a guidance! oh >> got more to say on this, i thinku.s. in a minute. later today exclusive interview with goldman sachs chairman and ceo david solomon, that's coming up on "the closing bell" at 4:00

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you're looking at the dow up by 141 points, s&p 500 up about 14 points join us tomorrow "squawk on the street" begins right now. ♪ >> welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at new york stock exchange. dow futures up 130 looking for a record open, reflecting hope the novel coronavirus spread is peaking as the number of new daily cases falls to the lowest since january. got powell on the hill, day two today. europe is a relatively green, oil sup, even as opec cuts its demand forecast for a sixth time our road map begins with the new hampshire squeaker, sanders narrowly beating buttigieg