as well. we like the stock. >> shoutout to frederick county. >> i try to lose your money here buy some puts on the fed 21 expiration take protection out. >> we have to leave it there, steve. >> car is outside. thank you very much for watching "the exchange" begins now. we're going to talk about home renovations thanks welcome to "the exchange," everybody. i'm kelly evans. the great divide, while stocks get closer to reaching major milestones, investors are pouring into bonds these days. we'll explore that and tell you why. a terrible investment. that's what t. rowe price is saying about wework. is facebook the greatest copycat or the worst we begin with today's markets and dom chu who did a deck renovation, as well. >> i did not use composite i used full pvc for a reason

we are seeing a fairly tight range in trading today and seeing pretty much red across the screen nearly flat markets. a quarter of a percent to the downside for the s&p 500, at the highs of the day up 3 points. at the lows down 6 in the middle a fairly tight trading range today. a place getting attention is software stocks. this particular etf, ticker igv is up today. nothing to write home about but put a star up here because it's a record high for this particular etf and never seen a big pullback in this particular etf over the course of the past year and pullbacks of 3% and 6%. not huge momentum still with software and then end on shares of nvidia getting another gold star, as well it's a record high for nvidia. better than expected profits, sales for the semiconductor

maker and better than expected forecast even though it will take a hit from the coronavirus in china it's still up 7% on the day. back over to you. >> a monster week for nvidia thank you. as the dow overall inches closer and cloerser the 30,000 milestone, you would think money is pouring into the market and it is. bond market. the biggest weekly inflows ever of bond flow last week if it continues, a trillion dollars will flood the bond market this year for more on this, i'm joined by andre scarza and jerry castani great to have you both here. andres, why this love, this euphoria for bonds some suggest an aging demographic thing. you have so much of the population, the baby boomers, retiring or that phase of their lives with each passing day they have to buy bonds. >> so i think there is a structural story and then there is the cyclical story.

right? there is definitely the baby boomers 10,000 retiring a day and they need income to live on. that's the bond story structuring not going away and the agreement of equity and bonds of the global recovery, equities seem to be looking right now at pmis improving saying put the headlines aside there is going to be a global recovery see that by the fact of cyclical stocks outperforming but not seeing yields rally at the same time and that disagreement something to keep an eye on. >> that's why it's interesting you frame it that way. jerry, i'll ask you to chew on this if the markets are in disagreement then one of them has to be right but if they're two sides of the same coin because the inflows of equities massive, on pace to be a record and dwarfed by the bond inflows.

>> i won't argue about the debt disagreement the more compelling point, though, there's just so much liquidity out there. people carry more cash than they have ever carried. so much fed and central bank liquidities pumped into the entire financial system, it is almost as though you need to buy both bonds and stocks. don't take the bond as a concern. look at it as there's so much more money behind that to come into stocks and that's where you have to look at the big opportunity we have in stocks. based on pretty much the same driving fundamentals. >> both of you have opportunities you think in the environment. we just have news coming in. this is for one moment a news alert on apple. josh, what is going on >> so, kelly, news here on apple that it continues to reopen the stores in china saying to open a store in shanghai on saturday. they have seven stores in that city of course, this follows the news

apple is going to open five stores in beijing with limited hours. why do investors care? analysts estimate those 42 stores in total generate about 10% of greater china revenue in a given quarter. back to you. >> thank you this is part of what we have been discussing, so every time there's been a coronavirus negative headline you see the bond yields globally sink further. maybe getting a rebound here how significant is it to you to watch apple as a harbinger with the outbreak >> it is definitely one of the company that is if it were to be affected it would affect the s&p, for instance. right? just on its own and the idea of it is like to affect other companies. i think the market so far have looked at this as -- basically looked through it. you know what? is it a bad quarter potentially? sure does it change the story not just for the company but the global recovery?

unlikely. >> let's talk about the retail sales number this morning and soft it's confirming the softness for now kind of a past four or five months and we saw bond yields sink on that so it does seem as though there is this not just liquidity and jerry makes an excellent point about where we have had 800 rate cuts since lehman and seems to be the bond market trying to sniff out, well, okay, is growth rolling over >> absolutely. that's a perfect example of the bond market looking at certain indicators that are proving their thesis versus the equity market looking at the pmi sub index for trade orders bottoming out saying there's the v-shapes recovery coming. >> where would you be invested >> i think you have to own everything right? especially -- no, no especially for the people that matter the most in retirement. can't say let's hope equities is right. they need fixed income to be a

protection if you're asking us if i think the recovery is done, i don't think there's enough points, enough data points to show that especially when monetary policy here in the u.s. and globally still expanding. >> jerry, would you own everything or be more selective? >> you have had this opportunity. right? there's in the market itself if you're not in the momentum stocks you pointed out with several of them today, they're running past you f. you want to be more discriminating start with what's been hurt most from the entire coronavirus thing and that's clearly the energy stocks there's been a sell first ask questions later approach and you can buy eog and conoco at wonderful values or buy apple and applied materials for a tech area and most logical and last don't underestimate the power of the financials, they collect up

the liquidity, in deposits, ability to lend or moneys to manage or all of the different things that the big companies do and they have incredible valuation stories running behind them it is an all virtue group of six different names but if you're looking at opportunities right now i would look at all three of those sectors and the names we just described. >> wow there's a lot of boats rising in these waters, guys thank you very much for joining me jerry, andres. we've moved to a public rebuke t. rowe price addressing investors of wework. they said we made a small private investment in the upstart and since caused us outsized headaches and disappointments. they added, quote, we are ready to declare it a terrible investment saying it was left holding shares for just a

fraction of the original price peter, how important is it for t. rowe to demonstrate better returns and seen as a big appeal to say to the public out there, hey, if you can't get your hands on the silicon valley start-ups, we can help you with that? >> i think they did the right thing today. they were very clear they made a mistake. they wanted to make it known that they -- you know, thought of this as an anomalous situation and provided details on the decisionmake process and how they got it wrong. i think it was important a mutual fund company did that because, of course, the vehicles are being sold to retail investors and it was -- it is always a super risky situation to be going into the companies as a mutual fund and clearly like they said a debacle ab rig and right for them to detail what

went wrong and i would be surprised if -- it says in their explanation and that they didn't invest in that many private companies. it was an error of judgment, not process. i don't know what the difference is there but i think i would give them some credit for being upfront of what happened and would be super cautious in the future. >> seemed more a sign of the times and seen as look at us, we are in the hot start-ups and saying we weren't in that many, don't worry. >> they can pull back and didn't have that many i agree. >> yeah. i wonder, as well, there's a couple of issues number one, not as liquid investments and decided to, hey, back off of some of these investments, more difficult to execute that and then even when they're involved if they want to sort of con tribtribute to posi change and throw shade at softbank but the boards are harder to influence, not the same as the control for some of

the publicly traded companies. >> exactly it's the other level of risk here for private companies is that you can't get in and out if you want to quickly and then this is incredible dedale in this piece of text wrhere it sas the board wouldn't let them unload the stake as you imagine as you were negative yourself? any other shares on the public market you would do that yeah it just reveals the dangers. >> sure. so what happens now, peter, if there is -- i guess it depends on what is happening with the broader investing public if people say we need more clarity, we don't want exposure or maybe it was just a bad year. >> i think always will be companies that mutual fund companies will want to be in we have enough bad situations

like wework. i think there will be more caution when people start to invest in those but the other point to make is that there's plenty of hyper growth companies on the public markets that are just as risky and you can sell them if you want to really easily so i don't know why you have to go in the private marks and plenty on the public. >> what do you make of the fact to see so much of the helium come out of the balloon without broader ramifications of the publicly traded stock market or the economy? this cycle seems to be happening almost in a vacuum. >> i mean, that's great. right? that's kind of what you want you want areas of high speculation to implode in an isolated way. >> right. >> and the stock that isn't terrible to continue to go up. it shows that something's working in the system where the spillover didn't happen. i'm not saying that's always going to be the case it could be so much money moving around like your previous guest

said but for now, you know, let's -- >> a good thing. >> let it continue. >> exactly of course now i'm worried the shoe's about to fall and it makes more sense. >> i should not have said that. >> exactly looking like the prophet of doom with your black turtleneck, too. great to see you. >> thank you, kelly. that is stragight ahead on "the exchange" - >> here's the spring selling season what renovations give you the most bang for your buck. plus, how the coronavirus could be the black swan that takes the momentum out of the tech rally and a look at how americans are addicted to tax refunds.

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welcome back to "the exchange" exchange". if you're thinking of home renovations, costs are up and diana olick is live in washington with more hi, diana. >> reporter: hi, kelly we are getting less of a return on the renovation investment 63.7%, below the last decade high of just over 71% according to remodeling magazine annual report because the cost to do the projects are rising. mostly labor and material costs.

drum roll -- what particular project yields the best return in resale return exterior manufactured stone veneer at number one with a nearly 96% return on investment a garage door. a mid level kitchen return with a 78% return and bathrooms didn't make the top ten. you do better with window replacements, new deck and siding it is all about the curb appeal. >> it is -- this is like a third time in 15 minutes replacing a deck has come up, diana. what is driving the trends to enhance the curb appeal? something to infer from this, especially at a time when the housing market is so tight >> reporter: well, you are looking actually at an older housing stock. a lot of people are ren vatding older homes. you want to see that it's secure

from the outside, won't have flood issues or rot or mold. renovation that is seal the window, seal the foundation, people look for something that keeps the house really safe. >> great point about the fact that the housing stock is older and older and needs investments as some of us have learned firsthand. just finally on this, given what we have seen with the housing market, the tightness in december maybe kind of enhanced by the unusually warm weather. what's happening with renovations relative to selling overall? used to be the case people stuck in the homes and thought to fix them up. what's the dynamic at play now >> reporter: people are really stuck in the homes even more now and incredibly low mortgage rates. starting to see the rates tick up, nobody wants to give up the rock bottom rate for anything higher and seeing very, very low mobility, not a lot in the move-up market and when people stay they want to fix it up and seeing a lot more dollars in

renovation. >> fascinating thanks we appreciate it coming up, shares of smile direct club are tanking on a nbc investigation that alleges its products harmed consumers. the company is responding and shares down 15%. coronavirus outbreak could accelerate america's decoupling from china we leg we'll look at the companies that will be hit the hardest. "the exchange" is ckn o.ba itw imagine traveling hassle-free with your golf clubs.

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welcome back to "the exchange." here's some of the movers this hour expedia leading. this after posting better than expected profit and guidance they said busy uncertainty and the coronavirus joutd break and shares up nearly 11% canopy growth soaring. the company saw strength in the recreational business to consumer segment, 15% gain for cgc. bed bath & beyond down after falling 20 thrs t% this week. just want to draw your attention to the dow at session lows, boeing is losing steam on reports the airlines to push

back the use of the 737-max. we'll continue to monitor it for you. first to brian for a cnbc news update. >> here's what's happening the department of justice has decided not to pursue charges of former deputy mccabe, closing an investigation to whether he lied to federal officials the decision revolves a criminal investigation spanning more than a year a chinese woman involved a security incident at mar-a-lago is sentenced to six months in jail she was found guilty this week of resisting arrest. she was given credit for the 59 days she is already spent behind bars and was also ordered to stay away from the resort. the flu is still widespread in 48 states according to the cdc, all but 6 states reporting high activity, a slight decline from last week. at least 26 million people have come down with the flu this season and americans are expected to spend $1.7 billion on their pets this year, up 17% from what

they spent 10 years ago. the average person earmarked 12 bucks for their pet on valentine's day. that's almost double what they spent last year. i don't know what they're buying that is the cnbc news update at this hour. >> i thought that spending up more than 17% when i look around. >> it is valentine's day >> okay. >> thank you. >> that is up double anyhow. thank you. here's what else is coming up on "the exchange" ahead. smile direct investors aren't smiling today, why tech companies shouldn't worry about facebook's copycat attempts, bye-bye barney's and a look at bad bets

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welcome back let's catch you up on a few stories on this friday, this valentine's day that should be on your radar. time for rapid fire. here to for the headlines is robert frank, rahimo sullivan and dom chu. look at this price action of smile direct club. sinking 15% after a nbc news report revealed complaints of

hundreds of unhappy users. they talked about pain, broken teeth and nerve damage it is a rough go for the teeth straightening pioneer here down 40% since going public last year when's happening in the particular case and what's happening with direct to consumer start-ups going belly up lately. >> popular business model. >> the first thing i looked at was the story of what they were alleging and then smile direct puts out a statement which they should and which we should say they said that the nbc news report didn't ask any of the hundreds of thousands of satisfied customers how they felt about the product, as well. >> right. >> but when i did it, the markets guy in me says this is crazy. look at the stock action i turned to a competitor with this particular function. >> had been one of the best performers in the nasdaq. >> up on a down tape and

certainly ripple effects going on from the nbc news report. >> here's what smile direct said we are disappointed that though we provided nbc with the opportunity to obtain the facts, nbc failed to provide a balanced and fair news story reflecting the facts. there's over 250 state-licensed dentists and orthodontists in the country who use our platform to treat their patients. >> always the case of any of us done an investigative piece they say why did you focus on the negative should have focused on the people that had a positive experience the difference with this as a consumer company is dealing with people's health and that's where you get into an issue of warnings from orthodontists that granted have a financial incentive to attack the company but these are serious claims, they're numerous and i think when you go to the -- are people, whether it's true or representative or not, the

marketing impact of this for people that are deciding whether to spend this much money or use traditional orthodontists, have a slightly crooked teeth than to have that happen. >> one thing i think is important is i would love to know how many people who get traditional braces and orthodontics work face options isn't there a risk whether it's cosmetic or not? >> sure. >> that's one thing to love to hear. >> the stock is kind of jumping to -- not the worst case conclusion but doesn't bode well did nest thing is the same theme with the start-ups which are hitting the skids. this is jet black. walmart says it's shutting down that personal shopping the business stalled and represents yet another bad bet in the competition with amazon let's get more detail from miss lauren thomas. before i jump to really macro

conclusions from this, what went wrong in this particular case? >> i remember two years ago roughly out in arkansas and the head of e-commerce with jenny fleiss announced this and laid this out at the annual shareholders meeting and billed it as the future of retail launching in the new york market text to order service and pay a $50 monthly fee and adds up to $600 annually. to essentially be able to -- everything but fresh groceries text looking for a birthday present or looking for a dress for this occasion and interact with a customer service rep and then offers you a few suggestions. >> given that this is $600 a year, reportedly losing $15,000 a customer >> per customer. >> that's crazy. >> exactly. >> how is that possible? >> i think walmart hoped in launching this to obviously get

into the new york market for starters which they don't have any stores in new york and to try to reach a more affluent customer, paying $600 a year compared to an amazon prime membership $119 and fewer than 1,000 members as of the end of the last year. >> skeptics said it doesn't make sense for walmart and walmart on its own with the investments doing a great job lately so i don't know what else we should say about this beyond being a bad fit. >> i wonder were there minimum purchases? i think i saw a story that you could order something relatively inexpensive and think about the labor costs associated with every time to order a box of diapers or something for dom or robl robert and shipping services. >> everything goes i heard -- actually spoke to someone on the project and wanted an extraf gantd bottle of

champagne, walmart would get it and a courier to deliver it to you. >> first time i go for extravagant champagne is walmart. >> i think to myself, immediately seeing the story, i didn't think of jet black. i thought to all the other e mers investments moose jaw, the other like mini platforms. are they doing okay in this e mers side of things? >> walmart bought jet.com in 2016 and when it started and then mod cloth they sold off and hay needle and shut down the headquarters so you have seen a lot of these bets they have made on the start- start-ups and they're not doing that well either walmart arguably trying to do something to compete with amazon online and when is the bet - >> moose jaw, i loved it now i just don't -- they don't

have the great selection or prices or like the high premium stuff i used to get there. walmart bought them! >> they don't want you to know. >> walmart thesis for a year is double digit crazy growth in e-commerce growth and online sales. >> grocery i think grocery that's boosting -- >> i wonder. lauren stay here we were going to mention anyways that barney's is closing the doors and i wonder if jet black is a better fit for barney's that's the customer, right would it have both saved barney's and jet black >> i don't know if anything could have saved barney's. it was a proudly expensive and proudly exclusive stores where you have to be somebody to come here and they were sort of preselecti preselecting brands that no one knew about today they were so expensive that in an age where price comparison is so easy -- >> right. >> everyone's sad and then say i

never shopped there but it's sad. >> i just throw this out there is it possible that the sort of disrupter era, a proliferation of the brands, this direct to consumer revolution and people go to get what they needed but a case to bring back thing a regator and tv to streaming and now need it all over again i can't keep of the direct to consumer brands. couldn't barney have played a role there keeping up with the changing technology? >> you are an arbitor. right? i think people don't want an arbitor of taste and brands anymore. they want to discover them and find them. >> that's hard work. instagram? >> stitch fix. >> yeah. >> they're sort of that middle person and they do let you decide but they sort of aggregate it for you stitch fix seems to be doing well at this. >> i think it was just yesterday weren't we doing a story on rent the runway >> yes. >> the problems of ramping up

the fulfillment. >> i wonder if barney's could have found a niche in that but for now get a great deal everything is 90% off. >> consultant. >> no. lauren, thanks appreciate it, ms. thomas. kroemt making an announcement about the company this morning. >> starting march 1st, delta air lines will become the first airline to go fully carbon neutral on a global basis. carbon offsets are not the solution, not enough to go around we need to be investing in projects that make a difference. a billion dollars over a decade a big number but think about this equivalent of $1 per barrel of oil in terms of price impact on delta. >> so you might be asking how can an airline go carbon neutral? delta will focus on clean investments for engine and carbon removal, a big challenge and equipment.

>> i don't know what that means. right? >> very hard to understand it is a little vague. >> there's assumptions to make i don't know if you claim with 100% certainty that on the flip of a switch on a certain day that you will be fully 100% carbon neutral no matter how many credits you buy. >> but you said by march 1 and -- >> i guess maybe the commentary here is trying to put an emphasis on this idea of environmental, governance and -- >> exactly. >> the theme of the ceos latching on this because - >> almost every day we hear about a different company or industry. >> this year's cannabis. if you just say esg in there - >> it's taking over the entire s&p 500. >> i read a research note about cosmetic companies sort of becoming environmentally friendly the trendy thing to do. >> again, it is one thing to sort of say we want you to put more thought into this but i think people are putting thought into it.

are the gestures meaningful? robert, there is a difference to less carbon in the environment but we make investments to offset it. >> i don't doubt there's a genuine interest in making delta less carbon intensive but this is about getting the esg label on your stock so you can be in those indexes so ed bastion's compensation is way up tied to that stock price very simple. >> ed bastion in the interview said that jets aren't going to fly on batteries any time soon they're still using jet fuel but this idea is every time you buy that jet fuel you're going to make some incremental investment either in something of planting a tree or investing in a solar farm project. right? >> airlines, as well, i think 2% of carbon emissions. not so much of a meaningful impact but there's an idea that

within ten, 20 years they can be 25% of emissions look this goes back to the harry and meghan markle thing. >> how does this go back to -- >> the moment they stop flying around in a private jet -- they flew commercial the other day and stop traveling period is the moment it means something and everybody is caught between i need to do the right thing about this and live my life and i don't know what other solutions are out there. >> waiting a listening time to wait for them to stop traveling. >> meantime -- >> teleconference. >> yeah. holograms. thank you, everybody coming up, facebook has a long list of copying apps and features and almost all of them failed ad this a case of a jack of all tres master of none? we'll debate that. we present limu emu & doug with this key to the city. [ applause ]

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facebook is experimenting with a copycat app of hobbi facebook announced to roll out a dating feature but it took over a year to launch, limited to a few countries and botched the eu rollout. meanwhile, match climbed 62% since the announcement and facebook's history launched with app killers that fall flat here to dig into that, steve kovac and julia boorstin, as well steve, most people say facebook is great at imitation because of its success with instagram stories but you say not so much. >> the imitations put them into the main apps, facebook or instagram. stories is the best example obviously. took it from snapchat and seeing tons of success with it. every earnings call they talk about stories for them so that's worked for them and

the standloan apps like an hobbi app with a horrible track record of gaining any traction. >> what are some other examples? >> years and years ago called poke and that was literally a clone of snapchat and you remember that facebook feature to poke your friends and. >> creepy. >> and right now they have a tiktok clone of lasso. showing no traction at all they haven't canceled it yet >> julia, do investors say, well, maybe in a way better to be like amazon and try a bunch of stuff and if they fail that's okay because the successes are important enough to offset that? >> well, look. if you look at facebook's stock chart it is managed to be very successful by incorporating the features as steve mentioned into its apps if you look at lenses, the way that you put lenses on top of the photos in facebook and instagram now, the facebook made

this work and what is interesting is that facebook is under so much scrutiny when it comes to acquisitions, the fact that now the ftc is looking, reexamining all of the acquisitions and under $90 million, facebook really needs to find new ways to innovate and not able to go out and buy another instagram or whatsapp like in the past and benefits them for an internal innovation lab, what the lab that this hobbi app came out of but in the past their attempts to have an internal skunk works to yield the apps have not yielded any success in terms of standalone apps and might have helped in other ways. >> that internal skunk works project, a good retention thing. they don't want the engineers run away to google or something or starting their own start-ups and disrupting them. we'll put you in the cool lab and experiment and play around and most of the apps that cop out are clones of other stuff. there's no origin no vags. they still look to other

competitors for the apps. >> finally, if they're not able to buy some of the companies that they once might have, if they're only able to copy but not necessarily copy well, then does that tell you that facebook's sort of vulnerable to the next big platform like a tiktok or tell you that they should stick to the knitting and stop trying to worry about the other stuff? >> it is better if they weave it into the main apps instagram and whatsapp are acquisitions and they're massive. so it does work when they weave it into the main apps. >> last word, julia. >> yeah. i would say, kelly, the fact of a team trying to come up with the new apps may be valuable for facebook in other ways getting a couple hundred thousand people or a couple million people to download hobbi may be able to use that information about how people are interacting with the new products to help inform features

to the core app and valuable in different ways and interesting to look at the rise of tiktok and not capturing that kind of audience for that same sort of use case but at the same time hasn't slowed down facebook's growth. >> that's true after you're on it instagram feels boring i don't know how they'll cop it but they'll find a way thank you both. coming up, the longer the coronavirus outbreak goes on, the more the tech sector is bracing for impact where and why to look next. and as we head to break, a look at the most searched tickers on cnbc.com. tesla just over $805 today nvidia number two on the monster week the 10-year note hgianng in there and roku down 7% at fidelity, online u.s. stocks and etfs are commission-free.

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alibaba ceo called the coronavirus a black swan event having a significant impact on the chinese and global economies but could the stock impact be a reason to worry? i'm joined by steve malinowich welcome, first of all.

this really did hit the tech industry so hard because it centered in china. what does the big implication been so far? why don't you think the stock reaction is larger >> it is funny the stocks haven'tfunny. stocks haven't reacted much. a reaction like sars or ebola. it's going to be contained, over relatively quickly, not affecting long-term cash flows personally i think there's more to worry about clearly hardware and semiconductor companies demand and supply chain in china could be negatively affected we've yet to see it fully play out. >> who are the companies -- take the case of say nvidia, having a monster week best week since i think 2015 look what's happening with the tech and software etf. all-time highs today bank of america, said there's money pouring in to tech funds and seen what the performance has been like. is it that this trade has become too popular? it's just kind of drowning out

these legitimate concerns? how deep do you see the problems being? >> the tech trade is obviously popular, but pretty narrow the platform companies like apple, microsoft, amazon, facebook google. the stocks really driving the market the average stock in our broad tech index is pretty much performing in line with the market nine months now i think it is fairly narrow. those are also the stocks probably that are in good shape here because they tend to have more u.s. demand the other beneficiaries could be gains stock games stocks, activision office, staying in the office, zoom, unified communication processes. internet and software stocks not as much chinese exposure understandable they would do well nvidia benefiting from the cloud in the u.s amazons who by graphic chips and data center upsize in quarter. >> a longer term trend here

maybe and should that -- you said most people comparing it to sars and ebola episode is that not the right comparison to be making >> i'm not an expert based an what we've seen so far, could be worse the mortality rate seems to be similar or less than eloll boeb. number of cases around 65,000, the curve, much steeper than we saw with those two obviously china has a much better transportation system today than it had back then. certainly i worry they haven't gotten full containment of it and then there's the question, did we shut down travelers fast enough a saying that if you're going to panic, panic early >> right. >> shut it down immediately. not clear everybody did that fast enough. again, i don't know what's going to happen here seems to me the stocks at least aren't discounting a significant risk. >> if you think the names like activision and zoom could stand to benefit from the friends wtra few weeks or more long-lasting

who is vulnerable? >> kurt system companies, cisco, dell, hp he hpe. 90% of notebooks manufactured in china. handbooks, chinese what about apple apple stock barely ticked down here and i know trying to open their shanghai store talk about they might have to shift to taiwan some manufacturing, but still mostly in china still a little risk there as well then the semiconductor companies mixed. applied materials brought down its numbers somewhat trying to derisk the outlook. >> i wonder if all investors say, yes, outbreak is bad and maybe worse than the previous ones still don't want to sell the stocks, because it's still going to pass. is there anything that's fundamentally changing for these businesses >> i think in the short term, a risk it becomes longer than people expect. that creates a little trading risk longer term, just this

u.s./china dynamic in the background that's much bigger than phase one of a trade. it's a question of, hacking us stealing i.p. and will we increasingly disengage >> right the curtain so to speak. >> or more viruseses coming out of china oos as a u.s. company, do i want to continue this. >> maybe raising cost of doing business and more difficult among other things. >> reduces their demand as well. >> thank you for more on the coronavirus tune into cnbc's special report "outbreak coronavirus" live tonight at 7:00 p.m. eastern. coming up, do you take less money in your paycheck to get a bigger tax refund check in the end? you're not alone if you do is it the right thing to do? we get into that next. meantime, shares of virgin galactic surging nearly 15% and hitting a 52-week high

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nearly two-thirds of taxpayers, more than 111 million americans, got a refund from the irs last year and many are willing to take a smaller paycheck as the year goes for a big refund check. joining me, how people spend that big refund once they get it. >> definitely spending it. listen, it's a nice size refund. average refund check last year was over $2,800. if you did direct deposit probably got $100 more on average. people getting a nice amount of money. interesting, though what they want to do with it. >> well, rewind a second as you say, nearly $2,900 people, people go, a great check to receive in the mail and plan lives around it, does that make sense? it's your money. you just happen to get it all at once shows there's some appetite for having almost a fourth savings vehicle. doesn't it >> financial advisers say for cash flow purposes you want the bigger check make sure you are withholding

enough from your pay so you're able to have cash flow over time and don't get a big refund, but people say according to a new survey by kiplinger magazine and barclays u.s. consumer bank. no i want to have that refund 63% want the refund. only 37% want a bigger check. >> wonder if there's ways to create more vehicles to kind of move this kind of trend along? talk about when they get the check, where does it go? we know they're entirely spent almost right away? >> actually saving a core of people say saving it 7% investing it, but there is a nice chunk of people saying, no. i want to pay off credit card bills or i need to spend it on everyday things. much better uses what to do with that check people don't realize the irs can help you almost force you to save you can put your refund, have a direct deposit in up to three different accounts doesn't have to just go to your checking account three different financial institutions one nor checking, saving and

investing and split your money that way and think of ways to save it in an i.r.a., emergency fund or if you have to pay off the debt towards that highest interest credit card. >> or use the money to not rack up the credit bill anyway. longer discussion. thank you so much. mention, cnbc and comcast are investors in acorns, does it for "the exchange. see you on "power lunch. thank you, see you here in a moment welcome. i'm tyler mathisen stocks set to end the week if not the day in the green second week in a row as tech stocks lead the way up, but, they're up double digits this year one tough strategist says there's a different sector about to soar. tell you which one it is and why. plus, retail sales and consumer sentiment meeting the streets expectations, but something is below the surface that could indicate trouble ahead. explaining that. later, ino