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 itht 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 plunges 99% but the ceo says the company is turning a corner what's on the other side we got the details "power lunch," right now welcome to "power lunch" i'm contessa brewer. the dow industrials, s&p 500, nasdaq all hitting record highs today. they are on track for their best month since june dow and nasdaq up three quarter of a percent s&p 500 up half a percent. health, caterpillar, nike up 2%. for more on what's working let's go bob pisani at the new york stock exchange >> this is a broad rally, that's the key. four to one declining advancing stocks everything is up because of the fang names amazon ridiculously overbought

microsoft peaked yesterday at 191. momentum is coming out this too is very over bought maybe overdue for a bit of a correction i'll show you how broad things are. even the retailers have been moving look at this move up here. any fundamental reason why this is happening individually? no, there is not this is betting pulled up by the momentum some politics are coming in to the market health care stocks, theories floating around that they are moving here. sanders win might increase the chances of trump winning it's positive for health care. that's pretzel logic here's my one disappointment what's up with the bank stocks we've seen yields hold up in the last day and a half pretty well and yet most of these have been declining throughout the day regions is just barely positive. otherwise very powerful rally. guys, back to you. so with stocks at record highs do you keep buying what's

been working let's bring in our strategists we've framed this debate partly as going what works, chris or growth versus value. for all intents and purposes does growth mean tech? >> it does mean tech doesn't have to mean just tech the ray river front defines it is different we throw out the idea price to book is the right way to daily he in it a growth to value but certainly tech fits that description. a lot of health care fits that description. things that are ancillary around the tech space companies that own real estate, that house data servers, for instance that would be considered a real estate company but yet it plays very much in the same growth. >> you in this market despite the run up, you're still on board, right

>> yes, we are still one of our favorite sectors at river front we put a bit of a spin on it a lot of press goes out to fang stocks and as an ex-technology analyst from a million years ago i can tell you once the pe gets over 25 i get nervous. there's a whole other part of tech, a subsectover tech like software companies generate tons of free cash flow and increasing returning cash flow to shareholders >> we'll come back to that thought. let me turn to you jim paulson your in the camp that says dance with the girl that bring you, in other words technology and growth because that's where the market has been and where it seems to be staying? >> i would have a little of both right now. i would stick with tech too like chris. if you look at the relative multiple, ford multiple on the s&p 500, it's about 10% above

average since 1990 not nearly as extreme as it was in the late ''90 tech run is not is not just foley. it's being driven by sales they are both continuing to rise significantly and that's where the relative price stock back in the '90s when it diverged, stock prices kept going up and sales fell over you had almost a year before the market came apart, so i think we're still being fundamentally driven i also think, tyler, tech or new era pursuits has become so big in this recovery it's now taking over as the biggest part of the economy. investment spending, new year investment spending comprises 50 puerto rico of the total for the first time ever whereas the start of this recovery only 37%.

so really, the new spending is where it's happening i think that will continue to lead until the end of this recovery i would start to sprinkle in smaller tech and mid-tech than large fang names and add value name >> i know you're looking for broad international growth i'm wondering how coronavirus and the screen or weakness of the dollar plays into what you're expecting internationally. >> sure. both of those are important factors particularly near the term for coronavirus history is pretty clear on pandemics. generally speak a ton of headline risk. markets freak out. generally economies in those regions are sharply affected but relatively short-lived phenomenon and markets tend to bottom when the instance of those viruses that new cases of viruses peak i think we may have already seen that historically speaking that's about six to eight weeks of the news >> i'm hearing that a lot from a lot of analysts and portfolio

managers yet last night dr. gotlieb said for get what we're seeing out of china, forget those cases it looks like the growth may have slowed down just a little bit. he say what we're going to look for in three to four weeks is what happens is it possible that the markets are discounting the overall threat >> it is possible. if you look at the pull back particularly in developed markets it wasn't that bad china got hit harbor luxury companies and airlines got hit hard overall markets not so bad could thereabout a second leg to this absolutely that's potentially on table. generally speaking -- we've seen the bottom or see the bottom a month and a half from now? on the dollar, dollar is very important. for our call if you look at the dollar since 2011 it's been

expressing at 3.5% a year. our view is the dollar is overvalued and looking for a catalyst could the fact that international economies pre-coronavirus virus seem like they are bottoming could that be the catalyst could the dollar bottom, yes >> jim, react on the international stocks and emerging markets in light of the two things chris just mentioned. >> we sound a lot alike. i'm in favor of international markets as well. i understand the coronavirus we don't know how bad that could be boy, we got a lot of powerful stimulus with lower rates, faster money, greater fiscal stimulus to offset any down side risk to growth seems to me growth is recovering in general the united states economic is up, things are up in china as well as europe i think there's pretty clear evidence of a revival going on much like we got after the

'4-'16 slow down if that occurs we'll get a period where stocks in general, industrials, materials, financials do better, and you get a period where international does better than the united states there's also, you know there's a big correlation between tech stock performance or growth. also a pretty strong correlation between the relative performance of emerging markets and value stocks in the united states. another way to play value revival would be tgeneral. one last point i would make, is the -- if i look at the chinese etf, right now it's a market performer since last summer. despite the trade war and despite the coronavirus, neither

of those is -- so it's holding up better than we thought. >> ishares one year basically flat year-to-date, behavioral down 1% which i guess after all the turmoil an consterniation is remarkable gentlemen we have vigorous disagreement we thank you appreciate it. mortgage rates are at three year low and that has borrowers rushing to refinance diane oleck has the numbers for us >> reporter: mortgage lenders were busy last week mostly with refis. volume increased 1% compared with the previous week according to the mortgage bankers association. refi demand drove all the volume rising 5% for the week and a remarkable 20% compared with the same week one year ago that's highest level since june of 2013. mortgage rates began falling about a month ago as fears of the coronavirus hit financial markets. rates are hovering around the 30

year low it rose slightly to 3.72%. but mortgage applications to purchase a home they fell 6% for the week although 16% higher compared the same week a year ago. a year ago demand weak demand surged due to fierce competition. price gains have begun to accelerate and lack of affordable homes is keeping some buyers on the sidelines. coming up, 2020 not off to a good start for softbank. company reporting a huge drop in profits raising concerns about its second vision fund much more on that coming up. apple has been a huge driving force in this record breaking rally. up next we'll talking to an analyst who is finally, finally gets on board raising his price target by more than $100 a share but stilbel low the stock's

current price. we'll see what that means coming up sometimes, the pressures of today's world can make it tough to take care of yourself. but nature's bounty has innovative ways to help you maintain balance and help keep you active and well-rested. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy. because it's tailored to you! nature's bounty. ...take the personal assessment and get matched with a proven weight loss plan. find out which customized plan

can make losing weight easier for you! myww join for free and get three months free!

welcome back to "power lunch" shares of apple up 10% so far this year after a strong 2019 but with apple offices and many retail locations still closed in china because of coronavirus fears and the outbreak, there how much does that impact hit the company's bottom line?

rod hall is neutral rating on apple.o 300 from 1292 last month joins us now from the goldman sachs technosee you today. i got to ask you given where the price is today do you have another hike in price target coming >> yeah. thank you, contessa. good to see you too or see you through the camera anyway. we're having a great conference here we have a lot of people attending, you know, very good attendance in spite of the public health crisis we're feeling good about that here at the goldman sachs technology conference. in term of the price target we realized last year our $192 target was out of alignment from where the stock had traded and moved it up to reflect just of where the stock is trading today and the valuation it's trading at one thing i'll say is we usually as analysts express our view

through our rating, neutral, buy, sell ratings. we're neutral on apple right now and have been through this period and that ratie ing tendso track what we think of the fundamentals of the company. will it be worse or better than consensus expects them to be we expect those fundamentals to remain close to where consensus thought they would come out. we don't want to argue too much with the stock market about valuation of the company because that's the stock market's job, you know the stock market is there to value assets, and it has spoken on apple, it's clearly telling us that apple stock is worth more to the premium s&p point of view than before so we acknowledge that. >> how are you factoring in coronavirus right now when you look at the fundamentals for first quarter, maybe bleeding over into second quarter of

2020 you got disruption with foxconn, air pods on big back order the question i know a lot of people want to answer but is unanswerable right now when does the threat of the outbreak end >> of course, we can't answer that any better than anyone ebony williams our central case on coronavirus is that it affects q1, calendar q1 to march. we don't assume anything beyond that i can give you a couple of data points that might help you understand exposure there. apple themselves said they have widened their guidance range on revenue to encompass to coronavirus risk we believe that was a $2 billion expansion of that guidance range. that will represent 2 to 3 million units, you know, of potential down side due to people not buying phones in china. i can also tell you that in china we would expect apple to sell about 7 to 8 million

iphones in the first quarter depending how all this plays out we would expect sale volume to be very low. given what's happening people are not in stores, et cetera but keep in mind that apple did guide a wider range to try to acknowledge that >> one of the things -- >> so that's about all we can say. >> one of the things that you point out in your note is that -- while you say that the coronavirus is an immediate or short term issue, that your longer term concern is that some of the momentum or the forecast for later in the year are too high and that the stock may disappoint at that time. what is it that's going to turn later in the year that is going to cause the company not to measure up to those higher consensus forecasts? >> yeah. let me say what we meant there we're the talking about the

iphone unit volume in particular interesting thing there, though, is that this coronavirus is possibly pushing unit demand further out into the year. that may actually help that unit volume at the back end of the year that's something we should think about. our earnings model is not that far below the street at the end of the year in the december quarter because our services model for apple is actually above street expectations. again you're back to this situation where yes we believe the iphone about the coronavirus had never happened probably would have been weaker than consensus thought but we think service is probably going to be better so there's puts and takes in the apple numbers around all of those things >> you mentioned the attendance at that conference have you had fewer attendees because of the travel restrictions put in place? >> i don't have the numbers off the top of my head but i'm sure some of our clients decided not to travel particularly people

coming from asia as you guys know there are restrictions on some of those people but, yeah. commonsensically expect some impact although attendance here has been very good >> thank you for joining us. don't miss an exclusive interview coming up at 4:00 p.m. eastern with david solomon on "closing bell" we're not hearing any big conventions pulling out, no big, but there have been some blips on that screen >> i'm just told they cancelled that barcelona, mobile world expo, nokia pulled out that conference is not moving forward. it's the big one of the year in the mobile area. to a great start to the year for bitcoin.

up big pops are followed by big drops. bitcoin is soaring energy is sinking. down 20% so far this year. is energy out of favor for good, forever? "power lunch" will be right back "power lunch" will be right back p.m. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's the most open and secure public cloud for business. it can manage all your apps and data from anywhere. so it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. without getting in your way. ♪ ♪ we're committed to makinmore e new hampshire university by making it more affordable. that's why we're keeping our tuition the same for all online and campus programs through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was.

i ran to my husband with my computer and i said, "look we can do this!" - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu.

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 ♪ ♪ don't just plan to retire. plan to live. an annuity helps cover your essential monthly expenses, so you're free to live the life you want. find out how an annuity can give you lifetime income at protectedincome.org

welcome back to "power lunch" bitcoin trading well above $10,000 today after crossing that mark earlier in the week. the crypto currency now 200% in the past 12 months let's bring in the trading nation team. mark, what do you think is behind this big move >> you know, i mean overall we're seeing investors continue to diversify away from, you know, traditional stocks and bonds, towards alternatives. bitcoin could fit into that alternative sleeve but it's a little too early the fact it's becoming significant less volatile if you can imagine that over the last two years is helping its case. technology behind it is great and really speaks to its potential. the issue is, you know, it's really not accepted as a viable currency just yet. it hasn't been embraced by

enough merchants and courtrooms and most people i know that own bitcoin and i'm in that camp itself were saying the same thing. we own an amount if it 10 x's we would be happy but if it goes to zero it won't change our lives not an investment yet. still a speculative play >> j.c. you're looking at the chart? >> when we look at crypto as a whole they tend to trade in two disdistincti distinctive phases when you look at bitcoin we're seeing signs dormant consolidation from the second half of last year is slowly starting to change in terms of positive bullish momentum here we broke out of the downward slope, breaking above the 10,000 psychological level and we're of the opinion that positive momentum will continue to follow positive momentum so that's why we think in the short term we could see 12,000 on bitcoin.

>> thank you for joining us and for more trading nation head to our website or follow us on twitter @tradingnation >> let's tell you what's coming up on "power lunch". oil and energy climbing. still down 10% this year the industry faces coronavirus concerns, slowing demand and more calls for environmental responsibility is the sector uninvestable coronavirus $3 billion blow to box office which companies are being hit hardest and what comes next? and softbank's blurry vision the company's profits wiped out following a string of bad investments. what this means for investors. all of this and more when "power lunch" returns >> announcer: now the latest from trading nation.cnbc.com and a word from our sponsor.

when you look at the critical issues facing our world, what do you see? we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer.

at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. she is on her way to our house. what? i got it. alexa, start roomba. the lexus es. eagerly prepared for the unexpected. lease the 2020 es 350 for $389 a month for 36 months. experience amazing at your lexus dealer. ♪

welcome back i'm sue herera here's your cnbc news update that hour. senator lindsey graham giving his take on the unexpected change in the sentencing guidelines for roger stone president trump's information campaign adviser >> i have real concerns about overzealous prosecution more than anything else if you haven't learned in the last two years some people are just going overboard, you're missing a lot here i want mr. stone to be treated fairly >> honda is recalling more than 200,000 mini vance for possible problems with the wiring harness which could cause a fire the recall covers 2018 to 2020 odyssey exl touring and minivans there's three reports of fires but no injuries. feeling a bit old? well you've got nothing on this gentleman. guinness world records certified

japan's man as the world's oldest man at 112 years old and 344 days if you think he looks good you should see his mom just kidding just kidding we wish him all the very best. >> yeah. i'm sure >> his mother was probably beautiful. >> you got us there, sue >> i try my best let's take a look right now at the markets markets are off the highs of the day. dow right now is up three quarters of a percentage point or 231 point s&p up half a percent. nasdaq composite up three quarters of a% and russell 2000 up half a% time for today's power movers lyft posting a narrower loss than wall street expected. says it expects profitability on that measure by the end of the year but not as soon as uber has predicted. shopify soaring to a record

high the company posted a small profit but a loss had been expected revenue topping expectations as well analysts saying the number of great but the stock may be getting pricey the stock has tripled over the past year and up 10% company ceo will be on "mad money" with jim cramer tonight at 6:00. we end with moderna. a coronavirus stock. working on a vaccine but the company saying it will sell 26 million more shares at $19 each and that's hurting the stock today, down nearly 11% the oil is closing for the day crude rising more than 2%. wean that gain still down 15% so far this year. oil stocks have been hit even harder the exo etf has been down 20%. how bad will the impact of the coronavirus be on global economy and on demand. brian sullivan joins us now

>> let's go through the numbers. even with today's little pop a pill of a year for oil stocks. coronavirus scare sending more shockwaves to an already oversupplied oil market. the question you asked is how bad is it and how bad might it get? china is the world's conbiggest oil importer about 13.5 billion barrels a day. oil demand is dropping to 200 million barrels a day depending on estimates you look at or you believe. something interesting is heaping. three lines on this chart. one is oil one is the exop etf and other is xfi, china's big cap etf this is china. in the last sessions we've seen the chinese market rally oil and oil stocks, aside from that tiny pop today way down here have fall ina lot more, a lot faster than china. in fact, china is not quite but

almost back to where it was pre-coronavirus scare. of course the chinese government is stimulating the economy probably buying stocks but aside from that the xop down 20% this year and down 34% the past 12 months with this recent drop something truly i think incredible has happened the market value of the entire u oil and gas industry not including refiners, a separate beast, is now under $1 trillion. i want to repeat that. the entire onshore oil and gas industry, 44 companies, now just totally worth $946 billion that sound like a lot. four companies apple, microsoft, google and amazon are now worth more individually in some cases 50% more than the entire u.s. oil and gas-drilling industry. for context in 2007 exxon was the most valuable company in the world. hit a market cap of $520

billion. now the market caps of exxon, chevronc conocophilips are less >> come over and union us on top of the other issues facing the energy market the industry face a push to divest from fossil fuels as it pushes towards more sustainable production bp promising today it will achieve net zero emissions by 2050 with us to discuss all of this is managing director at mazua. are you surprised that oil has held up as well as it has? >> i am. i thought this would be worse. we have a worse case with windsor being warm globally and traffic in shanghai down 90% and other stories. you got to remember there's a

four to six week lag in the oil market in terms of what happens physically we're not quite there yet. we should be seeing the physical exacts at all surprised that -- let me come at ie going to stay morbid for a long time >> we think the problem is the strategy of the companies. we've been pushing very hard in many ways for companies to shrink themselves. we were effective with this in refining refining has done very well. if you're worried about the tesla effect you have to ask yourself why has refining performed so well. our view is because they have very high cash returns of shareholders you get paid out over the next ten years if we get to 10% build up yield and you don't care about 11 and beyond. >> that's the dirty little

secret we've been talking about tesla's rise and esg if vesting. demand for gasoline and oil and cover your ears if you don't want to hear this will increase globally for the next 20 or 30 years, correct everybody in india and china and the philippines and every where else is not driving an electric car. >> right i wrote the note ten years ago if you told me when i wrote that note we would be at 100 million barrels a day i would say i'm going heaven that's not the way the companies have managed the strategy. to continue my point if you think about a 1% yield, you are discounting 100 years of ownership. >> if that's the case then why do we see now oil and gas companies saying they are going to make a big push to go green you know, you got bp saying they are going to reduce the carbon footprint to net zero by 2050. if oil keeps going up why do they need to do that. >> it's questionable

also questionable whether they will invest as well if they give the cash back to you and let you make the decision on whether you want to buy tesla at the margin. for me it's smarter to say we'll shrink our emissions by shrinking our company. we'll massively increase our cash returns the example i was talking to brian about is think about the tobacco model. maybe these stocks are at lows in terms of how low they can go because we now have yields above a phillip morris or something where you would say the esg challenge is high. >> which oil companies do you lin special situations we're very involved in the marathon petroleum situation where you have a big change there. we upgraded oxy to begin the year >> why >> we think it works both ways 7.7% yield you got operational improvement that we always saw before the n

a anadarko deal. they are hedged for this year. >> a lot of problem. >> that is an issue. that would be route b you got a, vicki holland delivers and we hope she does. there could be a take out situation. going down doesn't make it a whole lot smaller bite because of the debt burden you have there. a bit more problematic we're all hoping consolidation obviously can hit the sector and get costs down and returns up which we've been waiting for a long time. >> we have to leave it thank you very much. >> oil is the new tobacco. to the bond market and rick santelli tracking the traction at the cme >> reporter: good afternoon. we had a ten year note auction today. it was a solid auction the yield for the new ten year 1.622. the old guys trading the same price it will flip tomorrow. look at two day of tens.

hard to imagine the auction had good demand considering how low yields are we're only 16 basis points off that 146 low look at bund from the same period 33 basis points off the loss not that makes a huge difference but it goes to show us how skittish our rates are, how much global and domestic demand there are with the rest of the oil at domestic or lower rates. the dollar index is flying right now it's at a four month high go to may of 2017. we're only a third of a cent away from testing that historic milestone as the dollar is up now six out of seven sessions. tyler, back to you come to you a hit to the movie industry because of the coronavirus. what happens when you shut down 70,000 movie theaters.

casino and the coronavirus, mounting credit card debt and don't cream for ice scream figure that out. at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today.

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

the impact of the coronavirus hitting various industries today carnival cruise lines saying its earnings could be hit by as much as 65 cents a share but the stock is moving a little bit higher today as you see there. wynn and las vegas sands also higher after an upgrade. more on that coming up first the impact on the movies with 70,000 cinemas in china shut down. julie boorstin is in los angeles with a look. >> reporter: tyler, the shuttering of chinese movie theaters is expected to mean the loss of 2.5 billion and 3 billion in chinese box office in the first quarter. the u.s. based company that has seen the biggest impact is imax. it's stock is down 15% this year chinese box office with $9 billion in ticket sales last

year was on track to surpass the u.s. this year and become the world's largest but so far the impact on hollywood of that industry really shutting down this quarter has been limited because u.s. movies were blocked from release during the lunar new year holiday we'll start to see some real impact at the end of march when disney is set to release "mulan." plus disney has "black widow" scheduled for may. another question when theaters do open is how those chinese theaters will hand tell logjam of releases that have piled up back to you. thank you very muc >> here's a look at some other stories we're following today on our tasting menu bank of america betting on a pair of casino stocks upgrading wynn and las vegas sand from neutral to buy

both stocks rising today as the firm says coronavirusfears are in the rear view mirror. though it is expecting gross gambling revenues to take a hit. both stores still lower in the past month but certainly off their lows considering the headline that first hit on coronavirus. i got to say, you know, tyler, when i'm looking at these casino one thing i'm seeing is that the analysts are factoring in the slowing numbers of new cases coming from china. remember, china has revised the way it's reporting and last night dr. scott gottlieb who has been on our air almost every day warned us he's no longer looking at china to set the season he's looking at singapore where they had a super spreader in town and seen their cases -- >> super spreader means someone who has infected multiple people >> las vegas sands hasy importa

cass. >> in singapore, which we follow as well. melco has important casinos in philippines. i won't if analysts are getting ahead of themselves. >> it peaking in china or what's happening in other markets >> next u credit card debt rising to $930 billion according to the federal reserve bank of new york $930 billion with a b. some red flags serious delinquencies, those more than 90 days late now the highest they've been in almost eight years. no surprise, credit card stocks like mastercard and visa are trading near all time highs. but i want to point out in this same report we also saw that total household debt though it rose to 14 trillion for the first time, as a percentage of disposable income is at loss going back to 1980 >> the ability to carry the debt

is higher. >> that's right. >> but debt leverage is always th next bottom finally a new move in the fight to tackle childhool stop runnin where's the under 12 crowd makes up 25% of the audience for television, and other measurable data unilever blog post citing the world health organization childhood obesity one of the most serious public health issues of the 21st century >> it's too late my 6 he-year-old twins are asking me now if they can netflix and chill. when i raise my eyebrows they mention ice cream. up next, softbank's vision problems its fund, vision fund losing $2 billion and calling toin question vision fun number 2 that's coming up on "power lunch" that for over 85 years

has focused on keeping confidence up when markets are down. an approach where portfolio managers work well independently. and even better together. who don't just invest, but are personally invested. can i find a proven approach designed to deliver results? with capital group, i can. talk to your advisor or consultant for investment risks and information.

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

welcome back shares of softbank are soaring this week after the approved mergen of t-mobile and sprint, which the company has a stake in and that's where the good news stops. the venture capitalist group reported a 99% plunge in q3 profits due to a $2 billion loss

from its vision fund and their ceo is scaling back ex spec stations for its second fund. >> we have learned lessons and this time -- >> at the moment i think that our next fund should be a little bit smaller, because, again, we have cause for concerns and anxiety to a lot of people so maybe we should make the size smaller and we collect fund as a bridge for next one, two years, and we achieve some results. >> here with us to discuss the future of softbank is maureen fairly, ipo and capital markets reporter at the "wall street journal. maureen, thank you for coming across the bridge and being with us today when you're looking at what son was saying there, about making

vision fund two smaller, why would making it smaller ensure to investors that he's not lost his touch? >> i think he's just buying time he came to market several years ago with a $100 billion fund, something we've never seen before he's taken massive bets on companies. we've seen how they've played out. there have been very few successes so far in the fund, especially with the larger ones. first of all, it sounds like they're having trouble getting investors to commit. >> i would think that you're getting smaller because maybe people aren't bringing money. >> yes because they've seen where it's gone so far. but to start with a little bit and see if they can buy themselves some time, maybe the bets will pay off and people will pay more. >> the bets that have not paid off are high profile, wework and uber where has it made sense where they've invested where have they made the money they expected to >> they made smaller bets on a handful of companies

guard ant health is one. the big thing here is when he talked about the vision fund, it was $100 billion and son was going to take massive bets and really bet on a specific category like ride hailing or various categories. >> office sharing. >> office sharing, exactly, and win, and get so far ahead because they were going to spend so much money. it's almost ironic that the smaller more traditional bets they've made are the ones that are paying off well. >> fundamentally what you seem to be saying is he sprayed from his home turf? >> or when he hasn't it hasn't worked out so well look at wework they kind of did what they said they were going to do, let's throw tons of money at a company, spend more than someone like adam newman, who was ready to spend a lot of money. spend more than you ever thought you would and let's see where this goes. and we've seen where it's gone and it's not gone.

>> elliot management has invested more than $2.5 billion now in soft barbank how do you think having these investors go in, what kind of a strategy will they be agitating for? >> they're going to agitate for stock buybacks, and they are agitating for a lot more conservatism and corporate governance there are real questions of how the corporate governance is working. it sounds like there's a good chance they'll agitate for them to sell some of their alibaba shake, which is the crowned jewel of softbank. it's probably the best investment of all time by a landslide. they're sitting on a lot of it. >> is that the end game here, to get them to return capital to shareholders, to sell assets to do that? is that how they -- >> it seems like it's a big part of the play to go in there and do that. and it's ironic, they're one of the world's foremost activist

investors. softbank has this huge vision. there's always been this sort of push and pull between the long-term vision and activist investors and we're going to watch that play out. >> can i ask you about airbnb. this was supposed to be a departure from uber because it was profitable what's happened? >> we've learned that this year they've racked up net losses, especially what we reported in the "wall street journal" the first nine months of this year net losses previous year it was in positive territory. so it's a concern for investors. clearly the public market investors have been very worried about unprofitable companies and air nbn was going to be this one profitable company and it was going to be different. it is very different they have a lot of cash. they could do a direct listing and might not need money but still the optics of it and it's concerning. >> and it's struggling under coronavirus right now, too maureen, thank you so much for coming in. >> thank you for having me.

>> nice to have you here thank you. check, please, please, is next imagine traveling hassle-free with your golf clubs.

now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

check, please. >> and for check, please, let's take a look at where the markets stand at this hour as we turn to the last two hours of trading. the dow is up 230 points, s&p up 19, better than a half percent, and the nasdaq up about three-quarters of a percent or 74 points. records. >> energy the leading sector today. looks like they're focused on

the output cuts from opec and less on the demand build for u.s. inventories thank you for watching power lurn today "closing bell" starts right now. we'll see you back here tomorrow >> welcome, everyone, to "closing bell. i'm sarah eisen at the new york stock exchange the stock is sitting out the rally, will it do better than expected earnings? we will talk to ceo larr merlot >> another record setting day. i'm scott walker let's take a look at what's driving today's actions. stocks climbing to highs as the cases of coronavirus cases appears to be slowing and oil up