there. doc? >> target. february 28th expiration unusual activity i bought more today. >> cat is filling out the right side of the coronavirus smile. >> levi strauss thank you for watching thank you, scottie welcome to "the exchange." here's what's ahead. from tech to real estate to semis, all at -- a lot at all-time highs the broad list that's growing. we'll look at where the opportunities still might exist right now. about to get bad perhaps. why an investor says consumers will be in for a wild ride with the fallout of the coronavirus as that continues. why the stock market doesn't seem to be concerned about the rise of bernie sanders in the polls. but we'll begin with today's markets. and dom chu has the numbers.

>> on the same wave length the markets don't care about anything with regard to coronavirus or anything else, or so it seems. the reason why i say that is because you're seeing green on the screen the s&p up half a percent and three quarter percent gains for the nasdaq that denotes that they have all some point today hit record intraday highs bullish tone to the markets. one other place to see the bullish move today is in crude oil prices but again the chart puts it in context we are up 2.5% for wti crude but remember, from the highs from within the last 12 months we are still down about 23% so a very bearish trend overall long term for crude the coronavirus fears easing 2.5% upside and end with the stock of the day, a massive move higher in shopify.

earnings better than expected and revenues and the outlook and remember this stock look at this, 214% gain over the course of the last year and it's been almost a double, joe, just over the course of the last five or six months back over to you. >> you got your phone? >> i do. >> go check out my twitter account and i want you to answer what i just tweeted out because that's not my experience what i see. >> i'm going to go to it right now. >> golf makes you live longer because it relaxes you and you have less stress. >> i thought it was the exercise. >> yeah. thank you, dom all right. as dom noted, the dow and s&p set new records, intraday highs today, as well let's look at the rally beyond the u.s. the etf tracking the all-country world index at an all-time high with the german dax and the euro stock 600 and back in the u.s. sectors at all-time high of

technology led sectors, financials, consumer and what's driving the record highs for more i'm joined by craig callahan, founder and president of the icon and matt rattie at rockland trust craig, you point out this is a market that people haven't believed in for a long time. it's out at a fairly rich valuation. you think it's undervalued by 16%? >> yes we never use pe or price to book we compute intrinsic value and today we find the market about 16% below our estimate of fair value so we would expect it to move higher over the next year. >> weird because you point out some of the positives but then you say that most of the positives if you want to mention some of them, most of the positives are reflected in the 18.5 pe to look at right now but yet you think there's more left

in the tank. >> yes the outlook for earnings can support higher valuations. we just don't see the overpricing typical of peaks and we haven't for the last 11 years. >> all right matt, with that in mind, can you give us some of the stock that is you think are still buyable at levels? i made the point that stocks that hit new highs a lot of times hit more new highs and the reverse is true for stocks hitting new lows and would be nice to pick some with more to run. what are they? >> the names i have on the list today are cerner and sherwin-williams they all have had good returns like the market has. but the market ran 30% over the last year but earnings haven't grown for a lot of companies the companies are really the exception. cerner is a great health care i.t. company leader in the space. they have the data and data is king in that space 250 million people's records for data and doing a good job of

growing internationally. that's a name. >> hold that thought i'm going to come back to you in just a second, matt. but if i have a chance to go to santelli, i like to do that and there's important news in the bond market. the 10-year note rick, tracking the action, whees the demonday like? >> the demand for this auction in the grade form is a "b" as in boy. above average. 27 billion, this is the first offering, we always have the first major offering and two reopenings in 10-year note yields the yield dutch auction, 1.622 it was exactly priced in the middle of the when issued market the big profile plus in this auction, that's the best since march of last year the restof the metrics, 61.3, bit above the 10-year bid average. it could have been a b-plus a.

total of what? we have 16 billion to bound first-time 30s just finished 38 billion in 3s and all of this supply seems to find a home. joe, interest rates continue to go down and 162, would you lend your money to uncle sam for 162 yield? apparently many would. many yields are less interesting than interesting than ours. back to you. >> thank you matt, are you going to be able to start where you finished? you need to go back to the beginning and start all over >> i think that bond news is interesting. the bond market is acting as a big brother to the stock market and why it's blissfully ignorant around the valuations and grow because the stock market is -- i mean, the bond market is - >> what other names do you like? >> jpmorgan, leader in the space an private banking, investment banking, credit cards.

number one management team, double digit growth in every important metric number one investor in technology in the space. entered china as the first bank in the u.s entered 70 new branches, the boston market as we speak. with the retail banking. not a bank that's happy to sit where it is and continuing to grow last name is sherwin-williams. had an acquisition going very well did have a little bit of a slight hiccup and lowered the guidance but did that last year and then the guidance came back up and the earnings. they had a blip and might be a chance to get back into the name because when you look at the valuations it's rich like the market but it has good growth trends double digit growth in all categories again. >> craig, to the macro and ask you if, number one, how do you think the coronavirus situation plays out? and depending on whether it's favorable or less favorable, do you stay domestic? go around the world?

small cap, big cap, multi-nationals? >> in terms of our valuation readings, it's giving us a lot of opportunity in consumer discretionary, those seem to be hit, cruise ships, hotels, anything travel related and see look like bargains because of it internationally we still favor the u.s. market over international stocks we like them we just like the u.s. better. >> i've had people come on one of the earlier shows high saying that populism and nationalism is a global phenomenon at this point and that maybe you should stay with companies that do business in their individual countries and maybe not go multinational. is that -- do you see that in your work, craig >> i don't see that distinction. we're more sector oriented so what i pick up on are sectors on sale, out of favor. industrials, financials also appear very attractive.

>> good. all right. thank you, craig and matt. here's what's ahead, what else is ahead on "the exchange." coming up, why one analyst says it's not just retail earnings to take a hit from the coronavirus. consumers may want to get ready for shortages. we'll look at the names most at risk. plus, sensationalist and politicized. that's what microsoft is saying about amazon today we've got the details. and the corporate tax increase hidden in the white house budget imagine, feeling fearless when you walk into the dentist. imagine a mouthwash that strengthens your enamel, while preventing cavities up to 70%. act anticavity rinse. for a confidant feeling in your oral health, stop imagining, start acting.

welcome back to "the exchange." the number of coronavirus cases keeps climbing more than 45,000 cases worldwide. whether we believe that number including 13 in the u.s. the total number of deaths also is this accurate now stands at more than 1,100. cig pore reported 47 cases of coronavirus. one of the highest number of cases outside of china what's happening there may be an ominous sign of what's to come here scott good leeb saying half of singapore seems to have community transmission of

coronavirus and may be three to four weeks ahead of what could unfold in the u.s., could be bad new news for retail. joining us now is ike borsaho of wells fargo securities, just completed channel checks with the logistics contacts and finds that the risk is rising rapidly. not the virus but the risk from the virus is rising. what tells you that in the channel check? >> i think you have to -- think about retail, two different components one is revenue risk. global brands with 10% to 20% of the revenues in china, heard five to ten of them thus car revenue is zero dollars. 50% of the stores are closed and the stores that are open are comping negative 90. the other side is on the supply chain. these companies source a lot of product out of china and asia and we're hearing that the lunar new year extended kind of

created a buffer but in the next couple weeks if the factories not back up to capacity, if workers are not back working, we have spring and early summer product already kind of on the way but we might not have merchandise on the shelves. >> you like to talk as a group not individual names as much we are going to show some names that might be more affected but at wells fargo you actually cover a category of retail that is not based on whether it's like dollar stores or main line retailers. >> we cover the specialty retailers and the global brands. the report is the consumer - >> accessories. >> i'm the apparel, footwear and accessories guy. >> that's specific we are showing some of it. walmart and target, are these

names -- again, you don't have to recommend them or not, but names that they're very widely held so i don't know if people immediately think they need to worry about those. do they? >> broad line analyst covers them but i'll say that i think that a lot of investors focus on revenue risk overseas today and not thinking about that even if 100% domestic retail today you're sourcing everything from china and one of the key things to learn is it is not just if you diversify away from china. these other areas outside of china like vietnam source raw materials from china think trim, think zippers, cotton stuff is not coming in and out right now. there's a lot of disrupg in the supply chain and that creates uncertainty for the back half of the year i don't think that's where people are focusing. >> the next couple of weeks in your view are -- >> critical, yes. >> what will be the data points that you'll be watching for to make a determination about

whether, you know, whether it's going to be better or whether things are getting worse >> pbh who we cover, for example, put out a release today to give details and maybe see more of those, about to kick off the majority of q4 earnings season and will be hearing from the majority of the retailers on the calls. they will have to talk about this they have data points. >> even the information we get from the companies, they can see what's happening in their own business and don't know more than we do about the actual extent of how bad -- the epidemiology of the coronavirus. >> in terms of that, everyone's crystal ball, at least mine is extremely cloudy and i think they're just trying to look at what's in the system right now, what is their supply chain and then secondarily for the global guys some do 20% in china.

that's a big deal. >> in your view, when you hear 45,000 cases, do you think that's low and if it is low is it by a factor of two or by a factor of more than two? >> i think you probably talk to people a lot more educated and smarter than me on that kind of stuff. >> we were trying to decide that this morning because the symptoms if you're not elderly, young or immune compromised, you may not even be diagnosed. i don't know how to get a real handle on that i don't know how you do your work at wells fargo without knowing overall. >> all we can talk about is what's happening today the revenue dynamics we know today. >> you see companies with down 90% comp sales >> companies that they will say 50% to 60% of the doors closed, zero revenue the others, essentially no one walking in comps down 75% plus. so yeah. it's a big deal.

for the global guys they do 10% to 20% of revenues there think about some of the brands who have lowered guidance on the out quarter, 8% to 10% sales in china lowering guidance 75%. >> i just can't think of any other instance where things are down 90% this is very unique and something that kind of shake your head at thank you. appreciate it. will you call me when you -- in a couple weeks and let me know >> my first call my first call. >> i don't believe you for more on the coronavirus, tune in to cnbc special report "outbreak: coronavirus" live continue at 7:00 p.m. eastern. coming up, the fs and plasma no that was for the director. looks like the new white house budget has hidden corporate tax increases and bed bath & beyond sinking after a sales outlook.

here's what jim cramer said about the ceo. >> he gave no guidance last time when he did the quarter. he gave no guidance. last night he cut guidance may i remind him he had no guidance so whatever advice he got from what lawyer, from the chairman, i think all those people need to be broomed and broomed yesterday. you do not cut guidance when you have no guidance i mean, that is like -- did they go to college to get stupid? >> what do you really think, jim? what the company may be doing to turn itself around and always watch us or listen to us live on the go on the cnbc app "the exchange" is back in two minutes.

welcome back to "the exchange." here's some of the movers this hour shares of lyft falling more than 9% after the company reporting results, posted a wider than expected loss but revenue did jump 52% lyft forecasts slower growth in the new year as ridership stagnated in the second half of 2019 micron among a top performer up nearly 5%. ubs upgrading the stock to buy from neutral and raising the price target by $30 to $57 the analyst saying the time has

finally come when micron can outperform over a sustainable period of time and western union on track for a large drop. reporting a drop in both profit and revenue. all right. now, now right now, to sue sue herera. >> hello, joe. >> hi. i milk it, when i get a chance to toss to you. >> i appreciate that here's what's happening at this hour, everyone the verdict is in for a chinese woman arrested at president trump's mar-a-lago property in december a. jury found her not guilty of trespassing but guilty of resisting arrest. she claimed she didn't see any signs warning her to stay off the property and faces up to a year in prison for the resisting arrest conviction. on capitol hill, senate minority leader schumer blasting president trump for intervening in the sentencing procedure for

roger stone. >> left to his own devices, president trump would turn america into a banana republic where a dictator can do whatever he wants and the justice department is the president's personal law firm. not a defender of the rule of law. and some very scary moments at the annual big waves surf competition. a competitor wiping out. rescuers trying to get to him toss about and rushed to the hospital and listed in stable condition. he was actually sandwiched between two waves and it was a very, very scary situation. >> unbelievable. >> hopefully he is going to be okay back to you. >> okay, sue we hope so thank you. hey, sue >> yeah? >> here's what else is coming up on "the exchange" -- >> excellent ahead, whatsapp is defending

the encryption policy as it surpasses 2 billion users. microsoft is blasting amazon is it time to regulate gentlemen nettic testing companies and why the markets don't care about bernie sanders' rise. it's all ahead on "the exan."chge about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can. talk to your advisor or consultant for investment risks and information.

okay let's catch you up on a -- i can't help it. catch you on a few stories that should be on the radar it is teem for rapped fire here with the take, "the new york times" corporate media reporter and contributor ed lee and i feel like we work together we're together a lot morgan brennan, hi clark kent, also known as robert frank. there's no phone booths. much more difficult. >> go to the starbucks there's always one somewhere. >> shares of bed bath & beyond plummeting the ceo says the company is experiencing in his words short term pain. citingen creased promotions, falling store traffic and inventory issues this is really pretty hideous. down about 20% on pace for the

worst day ever for more, let's bring in and welcome cnbc.com retail reporter lauren thomas! lauren. >> hello. >> you hear that >> i can hear it, the applause great. >> how are you >> i wish we had that. >> i asked for that. we haven't met what the heck? >> why not >> the warm welcome joe is known for. >> they still don't sell beds. >> still don't sell beds you can get everything else beyond the bed. >> bed bath & beyond what really happened here? inventory. >> right i think they said it was a whole host of things, inventory management which a lot of retailers struggle with. not having the right things in store, out of stock in the holiday season and came out last night after the bell and reported preliminary results for the fourth quarter and won't report the fourth quarter until later in april saying that same store sales down 5.4% overall. analysts expecting a drop closer

to 3%. sales in stores down 11% they tried to make up for that sayingen line sales up 20% and still when you put that together it was still just not a good picture coming into the new year. >> i never been retailer but i think you have to work to be down 5.4%. just average you seem like - >> it is not good. >> what changed? >> so they have a new ceo. i think the story what we're seeing this morning with shoirs down so much is everyone -- mark triten, the former chief merchandising officer at target. first day on the job at bed bath & beyond november 4th. but just looking at his track record at target he did a great job there building target's private label brands and now really recognized for. and so i think the bar was set very high for him and there were high expectations, the stock ran up with the news

then in december he came in and ousted six people in the c-suite and cleaned house and off of that to see the disappointing holiday results, it was like, okay, this turn around will take longer than we anticipated so i think there's surprise at first. it was like, all right, this guy is going to turn things around right away but now it is like it takes more time and what i hear talking to analysts this morning and the reason for that stock drop. >> you're a media guy. >> i mean, i see it as an internet story right? >> oh yeah. >> seems like they haven't transformed into online sales. amazon beating everyone up on that score i bought something from them online and never came so i had to like, hey, you never sent it. they issued a refund >> how do you have traffic down an run out of inventory? that seems so basic that your traffic is down and you're

having stuff to run out of. >> not a good look. >> other thing, reported earnings in early january, wall street saw it as a kitchen sink report, the fact that he pulled guidance, numbers gnarly then. >> it would fall into the current quarter and even now with same store sales down 5.4%, okay maybe not a kitchen sink but more painful and you did see the shares whip higher in anticipation. >> what will be interesting to see, christmas tree shops, bye-bye baby, they have the other businesses, as well. >> lauren, thank you. >> yep. >> you're a dotcom person? >> i am. >> you were amazing here >> more applause, so love it. >> applause. >> next up, microsoft firing back, amazon web services amid its defense contract dispute

calling the claims in amazon's lawsuit in their words sensationalized and politicized rhetoric tend to agree with this. claims microsoft awarded the government's jedi contract unfairly under the pressure of the president who hates "the washington post. maybe. the company filing a motion in federal court seeking testimony from president trump and the defense secretary as part of the complaint. when this happens, morgan, i just think that it sells sat satya -- they were suing. >> exactly. >> microsoft was able to get the act together with a competitive offering here and just being bitter and saying this is -- doing this completely with -- what okay you tell me, morgan. bezos hate >> extremely controversial supposed to be a fast competition process.

the whole essence basically to start migrating in a broader sense the pentagon over to the cloud and this idea of what's been created commercially adopt it to this high security, highly sensitive abilities within the dod. it took 18 months. you had a pre-award bid protest of oracle and saw controversy there. >> right. >> now seeing the protest with amazon and not unsurprising because this happens when it comes to procurement and government contracting. >> the former employees are over at the dod, too, right >> that's not the case. >> there was the whole -- a whole reason, one of the reasons for oracle suing in the middle of this before the competition was actually awarded was because of the conflicts of interest and very dramatic, continues to be dramatic not the first time of seeing a dramatic process - >> i got a scene at oscars ch s flying to space. >> any competition is good

not putting all the eggs in one basket is good and amazon was front-runner for a while they do cloud services basically and -- >> saw the joke -- writes a check and the bank bounces >> microsoft was -- you agree that amazon is political in the rhetoric. >> yes >> i think you have to keep -- >> it was an easy contention to make. >> the president's words on this have made it difficult to say otherwise from amazon's point of view even if microsoft is right. >> jay carney on cnbc saying blatant political interference that being said, this is the process going on because once all is said and done whatever is decided in the court of law it gets put to rest. >> divorced and still the richest man in the world never mind you heard -- >> i want my panels to come on time and won't repeat. >> that's the last joke the team made i'm toast. this facebook owned whatsapp

hitting a new milestone. the message app with more than 2 billion users. first time in two years to disclose user numbers and doubling user privacy defending its encryption practices and e user's ability to communicate privately. independent of facebook, a sticking point for federal regulators s. this your thing? >> look. it is a little ironic because the two founders of whatsapp resigned two years ago essentially under complaints of facebook promising to leave it across and encroaching on the privacy and trying to uniform the platforms and it's rich for the ceo now to come out saying we're whatsapp, 2 billion and we are protecting the privacy. >> at the same time that the same article, same interview they made clear that they're

still working on making whatsapp interact with facebook's apps of instagram and so how can you on one side be saying we are really believing in encryption and want it to wok with other things that aren't encrypted trying to have it two ways. >> find ways to better monetize not only instagram but whatsapp and seems like the advertising in whatsapp is scrapped in the midst of this encryption debate. >> thank you for taking off your jacket looks like you're working. >> i am working. >> okay, all right. >> we are all working. >> the golden state with a new -- he is not >> i never work. >> too good looking to work. >> the godden state with a new target dna testing kits a congressman is calling for more regulation claiming current consumer protection laws aren't strong enough to protect data

from getting sold to third parties, that's been a rough go for the genetic testing industry two have each laid off dozens of employees amid declining sales you know i have never done this >> you're the bio guy. >> i found ten brothers and cysters i didn't know i had. >> i think it is slowing down. >> i would tell you that as far as third party and privacy, some of the stuff to find out about, wait, i'm not related to my brother? and then you start to have start asking only questions. don't we need to -- we always let it go and then ask questions latter think about this. >> i think it's a good provision in terms of trying to protect the data it is not cheap and the data put into something central database that -- here's the thing law enforcement has taken advantage and solved decades old

crimes and can be useful and helpful and -- >> another reason you haven't gotten it. >> exactly. >> talking about not only your data if you're interesting but maybe other family member's data too. >> i hate for employers -- >> insurance companies. >> opening up a pandora's box. parting is such sweet sorrow. >> a short stent. >> i'm going to miss all of you. not just you, ed, you, too, robert and morgan. coming up, teva up today on earnings an down nearly 30% over the past year. 2020 is off to a good start. however, with the nearly 40% gain so far, the ceo joins us live to talk about earnings, the coronavirus and the opioid crisis and the overhang on his company. "the exchange" is back if two minutes. legendary terrain in telluride,

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oh, welcome back to "the exchange." i was talking to meg shars of teva pharmaceuticals jumping more than 9% the manufacturer beat across the board. stock on a tear lately meg tirrell has more on that hi, meg. you have a guest. >> i sure do before the guest, i want to tell you about the background when kare schultz took over, the company was in need of a turn around the stock lost 80% of the value from the 2015 high as t eva faced a number of incredible challenges, pressures on the price, a huge debt load and a massive anti-trust suit alleging price fixing in the generic drug industry the ten neurohas new challenges, namely thousands of lawsuits over the company's alleged spur of the opioid crisis in the u.s.

teva said it reached a tentative settlement and donate $23 billion in addiction medications and not all parties accepted the offer. still the stock seeing a major recovery since then. amid the actions and so many and joini joining us now is kare schultz thank you for being here where you r you in the turn around process are you complete what happens now >> so we have got through the first part, restructuring. reducing the cost. and we also had to let go of a lot of good people and then we had to close down a lot of factories, had a very, very manufacturing network, more than 80 factories worldwide and reduced it by roughly 20 and now the next phase and really about growing the top line but also keeping optimizing and we have work to do on both sides of that equation. >> as you have had to shrink the

workforce, close offices, labs around the world, teva is important to the culture of israel how has your relationship with t the israeli government been affected >> it is good. we had discussions in the beginning but i think everybody understood it was important to safeguard the company and then have our headquarters in israel. i live in tel aviv what's also very important is that during this whole restructuring, we were able to maintain the operational capability we deliver more pharmaceuticals to the u.s. public more than anyone else. so we are very happy to maintain the high quality and high reliability, the backbone of modern health care. >> how would you deal with what we're trying to do with n in

this country, that is -- there's two sides of this. number one, the cheapest remedy in town if you can preeffort the hospital stay. pharmaceuticals can be the answer to the health care problems and then again the price inflation is out of line with everything else what would you do if you're president trump or congress, how would you handle this? >> this is the billion-dollar question. >> $100 billion question probably. >> it is, of course, as you know, extremely come ples the way the u.s. health care system is set up and i think that complexity drives cost and lack of transparency and a simple thing to be done issen crease transparency getting more transparency on the net pricing, more transparency on the middlemen not really doing the health care service or manufacturing the pharmaceutical product i think that would be something to be done relatively easy and trance pardon me sy normally helps for better performance and that's a simple thing that could be done.

>> although the drug companies point at the middlemen, the middlemen point at the drug companies and the government it is hard to really -- if you're a layman, to figure it out. >> i would say that beyond a doubt the generic pricing in the u.s. is low, lower than europe and also beyond a doubt that the generics provide huge relief for the u.s. health care system. we had an independent study done and also published today which shows that in 2018 teva supplied products to the u.s. population reduced the cost with $41.9 billion and just the copay savings for the patients around $6 billion and really matters to the industry and sector that this is happening. >> the prices of generic drugs are depressed so the drugs in that sector in many cases are getting too cheap and we have a chronic drug shortage problem in this country what would you -- how would you

define the health of that sector and whether you can really operate and continue making all of these needed drugs? >> we have a very dramatic development in the u.s. where the prices of generics came down dramatically with the influx of new supplies of india, china and so on. thi i think the last two years, since i joined teva, that's unsustainable, nobody will be able to supply, we need stable supply, cheap drugs but stable supply, good quality and we are assuring that in the u.s. market an we have a good dialogue with the three big customers and also three big buying groups and realized it is not only the cheapest price because here you talk few cents per product it's really also quality and stability and supplies that matters. >> i know we are almost out of time one more question about the novel coronavirus and the affect on drug supply chains.

a lot of generic drugs may start in china with the origin greed cents. do you see any disruption? >> for us there's no disruption. longer term might be a smaller disruption and we are probably one of the few of own value ap companies, we have what's called teva api and we sell and that manufacturing is primarily in india and europe and that's sort of at least for now safeguarded from the coronavirus of course, we follow it very closely taking care of the safety of the employees and securing su securing supplies to patients. >> thank you. >> thank you for being here. and you -- what do you like? >> tirrell is my maiden name. >> okay. ms. thank you both. coming up, bernie sanders wins new hampshire it was close and the market seems

indifferent. blankfine said tt's haa big mistake. we ole te we'll tell you why next. taking care of dad. why ameriprise financial? my advisor cares about my personal goals. he gives us comprehensive advice. i feel prepared for what's expected in life and even what's not. she helps us feel confident. we know our financial future is secure. with the right financial advice, life can be brilliant. ameriprise financial.

senator bernie sanders walking away from the new

hampshire primary with a victory. sanders has been surging in the polls and yet the markets seem nonplus. however one person is sounding the larm former goldman sachs ceo leo blankfein said sanders will ruin our economy and if i'm russian i go with sanders this time, around to best screw up the u.s. with us now, economic policy analyst, the american enterprise institute and a cnbc contributor. democrats are still talking about russia never gets old never gets old, does it? anyway, why do you think, and you know what? now that i think about it, for someone who honeymooned in moscow makes sense why aren't markets more worried about bernie >> one, i don't think they believe with unemployment rate at a 50 year low maybe headed to a 60 year low in what will then

be the 12 year of an economic recovery voters will vote for someone who is not just promising it's time for a change but he'll change everything. i don't believe wall street thinks that's possible if he should get in, that he'll be able to do anywhere what he promises what blankfein is saying this guy wants $16 trillion in increases. he wants to break up the banks and major tech companies don't put it pass him. he could get a lot of his agenda done >> blankfein said if they want to screw up the u.s. -- the last time they screw up the u.s. by backing trump and this time if they want to do it back bernie 60 year low did they miss up screwing up the u.s. they did a crappie job in making things horrible. >> very low unemployment rate.

>> the stock market. is russia happy with the damage they've inflicted by backing trump? >> the flip around something al gore used to say everything that's up is up, everything that is down, is down low unemployment, that's what we have that didn't work out so well clearly blankfein is thinking they may be more accurate this time around. >> you seem to be falling back on that. you wouldn't have the house and senate if bernie were elected. but he could do stuff with regulations that would blow your mind i mean he's good for -- i'll hang this on somebody else he's good for at least 30% selloff in the stock market, don't you think, if he were elected? don't you think? >> one, you have the fact people would be surprised that massive surprise, that kind of black swan stuff that's in the market then look you have the regulation if there's one thing we learned in the past three years, presidents have a lot of leeway

when it comes to trade bernie sanders is a protectionist. you can do a lot as president to shut down trade. and listen, they could get a lot done on taxes. you have that reconciliation a wealth tax unconstitutional. you can jack up taxes considerably >> i don't want to fall in the same trap as those who said the market will fall under president trump. >> there's a theory bernie sanders all he wants is a scandinavian state, big state. he won't nationalize stuff it's easier to say that, jimmy p. >> beautiful name. >> jimmy, see you later. coming up why the business community isn't going to be too

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- [spokesman] if you've tried colleg(group cheering)shed, snhu lets you transfer up to 90 credits toward you bachelor's degree. - [woman] it doesn't matter how old you are, you can do it, you can finish. - [spokesman] finish your degree at snhu.edu welcome back to the exchange the white house budget has a

surprise in store for the business community, and maybe not be the good kind i saw your report earlier, was a little bit surprised, chagrinned >> reporter: well the big piece of this here, joe, is the president's budget is supposed to a fiscal wish list about us there are billions of $of tax breaks that didn't make it and that translate into $150 billion into tax increases biggest one is r and d expensing. that will cost businesses $120 billion. the ability to fully expense capital competences. that's going away. formula for calculating the net interest deduction will become we favorable to businesses and tax rates on certain international income are going up as well so with potentially billions more dollars at stake everyone is waiting to see what will be

in the president's new tax plan. maybe these measures will find a home there but right now they don't have a champion >> i would talk to you more, but i've gotten seconds. so i'm not going to do it. maybe i'll see you tomorrow on "squawk box" >> extenders >> thank you that does it for the exchange. "power lunch" starts right now >> i'm disoriented with joe kernen here. the record rally raging on the dow up nearly 200 as the number of new cases of coronavirus are on the decline we'll tell you how to catch this historic run not catch the virus. catch the run. despite today's bounce back oil and energy still getting crushed this year so far is the sector turning into dead money as a long term play. blurry vision at softbank. shares