>> go ahead, jimmy give you auditory gold here. >> consolidated. ready to break out. >> go find your obstacle course, jimmy. >> i'm going with sonos. i like this one and i'm in it. >> t readyne. >> good stuff. thank you for watching "the exchange" starts now. >> thank you, scott. hi, everybody. welcome to "the exchange." i'm kely evans zero, the earnings growth this season excludeing the big five tech companies is this market too top heavy what happens in vegas? michael bloomberg hits the debate stage for the first time. and purchase particulalysis ande bloomberg business and coming up today but we begin with the markets. seema? >> resilience of the market once

again in play here stocks in rebound mode at the highs of the day at w the dow up 161. s&p 500 at a new record. the nasdaq up about a percent. technology best performing sector after apple warning yesterday. recovery of the big suppliers. some momentum for the upgrade at bernstein. some of the other big names up between 3% and 5%. take a look at shares of tesla continuing its march higher after a raise of the price target to $928 up nearly 20% over the past 1 week and currently off the highs of the session and trading above the $928 level earlier in today's trade. >> thanks. let's take a look at the record rally we're seeing. 80% of the s&p 500 reported

earnings goldman sachs found five names responsible for the growth grew t without them earnings growth would be flat. for more, i'm joined by kim forest and david ellison david, first to you. not just the fact that they have the earnings growth, the market cap of microsoft today, $1.4 trillion and apple on the tail. >> first you have to recognize that the companies are not one company. meaning that they have a lot of different businesses obviously they're almost representative of the whole economy. they maybe don't have energy but they have most of everything else. >> here's the worrisome thing. if they represent the whole economy and stock market, what happens when they stop going ever higher and ever higher? >> that's why we come to work every day.

factually they're correct. nobody's challenging the facts so that's an interesting thing to look at what does that mean? it tells you that the market is -- they like earnings right? they want earnings growth. there isn't a lot of it out there. they're gravitating towards it and the power of the index fund. they're bigger in the indexes and have to be bought more and they keep getting bought up. >> kim, david makes a great point that people criticize the market saying way overpaying these companies have earnings growth and only ones in the fourth quarter so maybe it's justified. i know you're not necessarily to be a trend follower but they've proven why they're such a lasting good investment. at least so far. >> sure. i don't dispute any of it but i would say each has a special situation. for example, facebook and google, they are taking over or

taking market share from advertising platforms. right? so that's just shifting money from one spend to another. that's interesting but it's showing you wall street rewards the winners. if you are an investor, don't you want to pick the next winner that's the big question. >> where would you be? i will call you kim "intel" forest that's a favorite of yours where else would you -- do you think people should look for the next winners >> well, always keep in mind, no doubt, that wall street rewards growth so you have to look at what kind of situation could grow in the next, i don't know, whatever your time frame is. let's say 18 months to 3 years what is pretty clear is once we get through coronavirus and maybe a little bit more trade negotiations, probably global growth will grow because of

trade. what will benefit? there's 5g an my friend intel and the rest of that semiconductor area but i also think that maybe consumer retail can come back in that because, you know, the pressure's off for tariffs. so i think looking in a bunch of different places for where growth can come is a really good idea. >> david, same question to you and also, many times when we have asked the question what could stop kind of a same trade, sort to speak, from continuing people say in a way trading off when's happening in the bond market an enif you had -- i'm not sure i totally buy the argument but the substantial move higher in bond yields to change the attractiveness in terms of where you want to be in the market do you see that happening? as we -- look. lower on the 10-year it is going in tandem. >> certainly that's the trade for a number of years now and i think the fed is basically taken

away of the volatility they don't want volatility the market loves volatility to -- wall street loves that but at the end of the day without the volatility, the winners keep being the winners access to wall street, the best people and the best ideas. and they're going to continue to consolidate around that. unless you get volatility in the capital markets where capitalism comes back, let price discovery happen, it is very hard -- >> you don't think -- that's a pretty big statement. >> again, the fed is taking it away by using the balance sheet. we had a 30-year bull market in bonds engineered by the fed and now rates that are so low and the fed doesn't want to take their foot off the boot of low rates because if there's a recession it's their fault and then that's a big problem for them so they don't want that so i think the whippers continue to be the winners until the fed has

to say enough is enough for this system to start working more evenly for everybody. >> wow you would say for the fang trade depends on the fed. >> absolutely. >> we get the minutes top of the next hour could be extra swr interesting. thank you both. now housing because the latest read on new construction is the first drop in three months but looks to be strong. permits surged to a new 13-year high home building in december strongest since 2006 let's bring in daryl redfin. what speaks to the strength of the housing market right now >> home buyer demand is high we are seeing more home buyers to get a home. the big challenge that they're facing is lack of homes for sale fewer than we have seen in 20 years. so definitely good news that new construction is picking up we'll need that supply. >> you said fewer homes for sale

in the whole country than in 20 years? >> that's right. >> i did notice in the notes you say new listings are down almost 5% from last year. why is that? >> homeowners are staying in the homes longer when the market is in balance and a seller's market than a buyer's market it is hard to envision yourself selling the home to buy a home again and causing people to stay in play longer. >> interesting for those getting in the market, especially with prices where they are, it is difficult. you think those trends get worse then for a couple of years >> well, the new construction numbers are promising. it says that in the next couple of years to see more homes on the market but it takes a while for them to come on and probably not enough to really make a big difference because there's so many people who want to enter home ownership. >> right the new home construction, something in the 1 million pace or so. how many homes do you think we need in this country how undersupplied are we

>> the numbers vary. at least a million homes but by some estimates it is as much as 4 million homes. >> wow other sort of final piece of this, not just single family housing but rent some parts of the country if you're a certain age single family home ownership isn't necessarily sensible and stuck renting. do you see anything there in terms of the multifamily starts of relief for renters, as well >> the places of most home construction is the southeast and the south where the land is affordable and focusing on single family homes. where we need more dense housing is in california and the big cities where there are lots of people to live there but the land is so expensive that home builders want to recoup the costs and tend to focus on luxury multifamily homes. >> interesting we appreciate it

thank you so much today. >> thank you. don't go anywhere. there's more still ahead on "the exchange." >> coming up, in a rare move, china says it may adjust the 2020 gdp growth target how big will the cut be? what does it mean for the rest of the region? plus, what happens if vegas doesn't stay in vegas. michael bloomberg's campaign co-chair on his first debate appearance who he'll target and what his main policy message will be. purchase paralysis the $13 cereal and to infinity and beyond listening and observing are critical skills for scientists at 3m. one of the products i helped develop was a softer, more secure diaper closure. as a mom, i knew it had to work. there were babies involved... and they weren't saying much. i envisioned what it's like for babies to have diapers around them.

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welcome back to "the exchange." the total number of con firnled coronavirus cases at 75,000 includi including 29 here in the u.s. and 14 americans tested positive since being evacuated in japan from a cruise ship all evacuees are quarantined the total number of deaths is more than 2,000 worldwide. to battle the outbreak, china is turning to the tech companies for help for more on that we go to eunice yoon in beijing.

>> reporter: authorities are sweeping for unidentified cases, tracing recent purchases of fever and drug medicine through drugstores an online and looking for potential patients via health apps and leveraging the technology to try to control the outbreak the chinese government is calling for all hands to join the fight against coronavirus. en colluding mechanical ones >> coronavirus. >> reporter: robots like pepper in hospitals at the epicenter directing patients to doctors. pepper was build by a start-up, one of several companies taking the tie-tech to the hot zone. >> the robots do not carry the diseases and robots can be easily disinfected they can, you know, face the first front line with all the unknown patients. >> reporter: unmanned drones are on the front line, too disinfecting public places, delivering lab samples and urging people to wear masks. face recognition software and

infrared cameras identify potential patients thermal cameras are used to detect those with a fever. there are backups to temperature gauges big data as some say is the prevention effort piercing eyes. china unicon list all the cities that you have been to in the past 14 days my phone says i've only been in beijing. >> ithink these types of work and effort is driving adaptions of new technology. >> reporter: while fighting an outbreak he and many others believe that if there is a silver looning to this outbreak it could be that their industry as well as others to come out stronger kelly? >> eunice, thanks. it's pressuring the chinese economy, too we have more on that the government's policy adviser

admitting they have to adjust gdp targets. >> that is important because beijing unveiled stimulus measures to offset the negative impact on the economy and saying that they may need to adjust the forecast amid a number of travel restrictions and wall street strategists downgraded their growth forecast for the first quarter in china jpmorgan at 1% we're also watching the verbiage of multinationals and we heard from addy das saying it's seen an 85% drop in china's sales since the 25th of january compared to the same period a year ago it is interesting looking at the companies dependent on the chinese growth story but in a way it is hit in two ways. not just by the consumption story by the supply chain effect, a one fifth of it supply

chain in china and certainly diversified to other countries like vietnam and cambodia but that is felt. >> it is obvious if adidas down 85%, gdp in the first quarter in china almost ground to a halt and more consumer discretionary but i mean, the government in order to maintain credibility will have to report a fairly low number in terms of any growth at all right? >> absolutely. now if question is, when will beijing adjust the numbers to align with the numbers of strategists, the companies reporting earnings and showing the type of decline in demand they have already seen in the country. i think what's also worth noting is sillover effect on asian economies from singapore to thailand. >> germany. >> yes exactly. very much dependent on china supply chain and will be one thing to watch i was in paris over the weekend speaking to a number of sales

reps at the mall you could see that tourism, the travel restrictions certainly hurt their luxury sector. >> business trip or the fact it was valentine's day have anything to do with the timing >> personal trip went there and had to ask people what they were feeling on the ground. >> shortages already tyler said he saw shortages in the malls in new jersey. >> foot traffic down based on the conversation with sales reps there and seeing this is very different than what they saw last year and lunar new year to incentivized them. but now will we see a second-year rebound? i think wall street strategists bringing down the forecast for the first quarter expect once the virus dissy pates they'll come back. >> thank you for more, tune in "outbreak: coronavirus. coming un, where's mari

kondo when you need her? from sin city to spin city, the next democratic presidential debate is tonight with michael bloomberg making a much anticipated debut. we'll hair from his campaign co-chair of what to expect you can listen to us on the go ♪ ♪ ♪ 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.

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welcome back, heef are the

movers groupon down 40% today groupon announcing to pursue a reverse stock split. remember, this is a $31 stock in 2011 under $2 a share nvidia hitting a high. the firm raising the price target analysts noting the story is much cleaner now than it was a year ago and shares of garmin leading and hitting a nearly 12-year high reporting better than expected results saying the business segments saw growth. now a cnbc news update. >> here's what's happening attorney general barr and fbi director wray attending a justice department forum on the law that shields tech companies from user liability. barr citing with critics saying the law has grown beyond the original intent. >> technology has changed in ways that no one including the

drafters of section 230 could have imagined. these changes have been accompanied by an expansive interpretation of 230 by the courts seemingly stretching beyond the text and original purpose. former democratic presidential candidate yang is joining cnn as a political commentator. he was known for his freedom dividend plan which would have provided every american adult with $1,000 a month as universal base income. and one of president trump's biggest fans turned his home in india into a shrine. he says he began worshipping trump four years ago when the president appeared to him in a dream. the president will be in india next week. back over to you. >> he's got to go visit this guy. >> you know? if you appeared to someone in a dream and it is really impactful on your life, you know >> go visit hip. can you imagine? >> i would think knowing the president trump that

we all know publicly i think he would definitely want do see the shrine to him. >> yeah. >> right >> this would be -- they have to fit it into the schedule courtney, thank you. >> thank you. here's what else is coming up on "the exchange" - >> ahead, bad path and restructuring. bloomberg's business could fetch billions why an analyst says tesla has hot wired human psychology and what if the fed doesn't come to the rescue in a potential slowdown you're pete nocchio? oh, the pic? that was actually a professional headshot. i'm sure that's it, yeah. i, uh, i think i've lost a few pounds recently too. i'm actually doing a juice cleanse. wait! you don't... (glass breaking) (gasp) ah! oh...! with geico, the savings keep on going. just like this sequel. 15 minutes could save you 15% or more on car insurance.

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try to win by attacking, now, we know the trump strategy- distorting, dividing. mr. president: it. won't. work. newspapers report bloomberg is the democrat trump fears most. as president, universal healthcare that lets people keep their coverage if they like it. a record on job creation. a doable plan to combat climate change. i led a complex, diverse city through 9-11 and i have common sense plans to move america away from chaos to progress! i'm mike bloomberg and i approve this message.

hello. let's catch you up on a couple stories that should be on your radar today. here with their takes on the headlines courtney reagan, robert frank and morgan brennan. bed bath & beyond trying to solve quote purchase paralysis spending $400 million to declutter stores and upgrade the ceo saying too many options and lack of price clarity led to shoppers leaving empty handed and while shares up 8% on the

week investors warming up to this as the day goes on but it make sense >> i think it could. i am reminded of macy's. i remember giving an example at one point, not so many years ago saying do we need 15 black pumps? it's a little overwhelming for folks. both on loon and in store. they come to us so that we cue rate fashion for them. and they cited examples where that did work and i think it could work i think you can go too far the other way. >> right no one ever says walmart suffers from too many options. >> i think walmart and target have many, many items and many, many different kinds of products and an article example is can openers. do you need 12 kinds maybe like three or four of the best whereas walmart probably doesn't

have 12 can opinioneeners even as the stores are. >> facing the existential threat of amazon and counting can openers -- >> it's an infinite amount. >> look. when you're spending $600 million to buy back stock an pay down debt and should be putting all the money you have into online and picking up at the store and -- >> bed bath? at this point your leaders in online are established takes a ton of money should they pursue this? >> courtney said the successful shift is combining. >> i'm still a proponent i don't think we live in a world of no stores. >> they're opening up all over the place. >> i don't think they look like they do today or nearly as many.

bed bath & beyond is trying to do a lot of things and a key criticism of many, many years of how far behind they fell for instance, the other thing, they don't offer buy online and pick up in the store which is crazy. >> i still wonder to the point earlier of can they -- if they're competing in the buy now pick up in the store space they're not the cheapest we know the markup is the difference there. >> yeah. they said that they'll hang on to the coupons and making the pricing strategy clearer, as well i think $400 million investing back in the store and supply chain and inventory but to robert's point 600 million to stock buy back and paying down the debt, what's the right balance there? this is a company that's been hit hard, hasn't necessarily made the right investments and sitting on the pile of cash. now they come back to the

strategy. >> that's assets to look at. you probably don't know they own world market and we know about bye bye baby. >> could have really leveraged that one >> anecdotally, every time going to bye bye baby in the last few weeks they have been out fundamental retail execution, one thing people go to the stores you don't have them - >> maybe coming from china >> literally throwing -- i don't know i don't know. >> twitter masses are coming for you, court is bloomberg the business for sale campaign spokesperson for michael bloomberg says he would sell his name sake, financial information and if he's president and pledged to if he ran. there's anti-trust concern of a bigger company as a reason not to pursue a deal while trump is

in office. what can you make of the position he is in and the likelihood the company is in the block? >> there's no rule or law saying the president can't run and own a business while he is in officer. trump still owns his company and run by his son bloomberg said if he wins he'll sell it. he knows what's in the company it is a blind trust with 20/20 vision basically he knows the customers put it in the trust and sell it. he said he wouldn't sell it to private equity or to a foreign buyer. gets rid of the allegations of a foreign influence on the president. but the biggest challenge is this is a 50 billion to 60 billion company with if not a monopoly dominance in the space and aren't a lot of logical buyers for it. >> okay. so who is the buyer? how long to take to come to fruition this is a process that could

potential if, if, if he were to be elected president could take years. >> reportedly not interested in a private equity buyer. >> he can't. he said i will not do that or a foreign buyer. you are left with warren buffett. really >> which if he wanted him to be president, you know? >> he could take it off his hands. still have 60 billion left over if he bought bloomberg for $60 billion. he has the cash. >> trying to unravel the conflicts of interest, president trump, whether it's bloomberg -- >> that's hard for bloomberg to take on trump with the same issue. >> 100%. >> here's what dan was saying. naming the number of issues. the con flkflicts what if two bidders come in with the same price what about congress in terms of anti-trust or any kind of investigation? setting up a new administration. who are the viable bidders

>> big clients are the huge banks so anything to do with the huge banks if bloomberg elected while in office would be questioned because they're the guy to pay the bills at bloomberg lp. >> one of the campaign chairs, in just the next segment and ask about this obviously i'm not sure if it's a debate topic. doesn't feel look that except maybe to draw the analogies of how to take on president trump over his conflicts of interest. >> trump promised to sell his business and he didn't. >> there you go. so we have been down this road. >> maybe he doesn't have to. >> there we go that's the answer. spacex is partnering with space adventures to send private customers into orbit the trip about five days and expected to launch sometime in around 2021. this as shares of fellow space company virgin galactic is galactic another all-time high today. nearly tripled this year

morgan, what -- is it because virgin galactic is publicly traded vehicle >> yeah. >> what's changed? >> oh, i think investor sentiment changed around space realization that this is a sector that's coming to life, you do -- are starting very, very slowly to have the more public purr play names spacex is private. i would not expect that number to go public any time soon president ceo told me the chances of an ipo to consider it when they're doing regular flights to mars. >> to mars okay. >> that's probably years away. >> market cap, value of spacex is. >> two weeks ago or today? >> last signing round $34 billion. >> billion dollars >> yeah. you can't play spacex like tesla but virgin galactic. >> there's a unifying theme of the stock moves this year.

>> i don't know that it's proven to be a profitable business. >> roblt, that's no -- old-fashioned view. >> needs money. >> two points. spacex said in most years the explosions, they have been profitable star link that they put in orbit very rapidly, talk to spin that off in a couple of years something expected to be very profitable according to spacex. >> a commercial business to business model. >> virgin galactic, service hasn't started yet >> focus on the growth margin. >> the fact that you don't actually have a service that has launched yet hasn't fully taken off yet. >> why talking about gross margins? it is barely a business, right >> hardware in places to services, right? an i trying to leverage that. >> earliest is - >> morgan on the first flight.

>> better be good in-flight deals for that. >> thank you. >> remember facebook hee traited. >> it is nasty. >> speaking of dehydrated, general mills is planning to boost slumping sales with a $13 cereal i was rolling my eyes but i have it in my pantry. the morning summit cereal has tons of yummy healthiy ingredients. this is the cereal sales chart that tells you the story about the stock. we eat it 78 times a year on average last year. compared with the '90s much higher so it's not a $13 regular box of cereal this is a 38-ounce box of cereal i did the math 34 seconds an ounce versus the regular cheerios 40 krencents an

ounce. >> it is 19 servings in the box s. that true >> i have eaten more than -- half a cup i go through it in like a week. >> 35 carbs, 18 grams of sugar. >> i know. >> it is such a girl cereal and girls doing the protein thing. >> couldn't find a box for $13 the cheapest is $16. >> i know. >> up to $25. >> you have to go to costco. distribution channel. >> i love it i got it for my mom. this is morning summit i thought i was the only one. >> i'm skeptical of the cereal comeback craze anyway. i feel like people doing it from fasting and eating on the go overnight oats protein heavy. >> i think the real play on demographics general mills thinking maybe this generation population growth and so forth. when we the millennials 8 years old.

is there an idea of -- i had to buy cheerios last year - >> toy brands. pass on the brands you know to your kids. >> that's the play. >> non-expired milk and tricky for me all the time. cereal is out of the question. >> we'll leave it there. thank you all today. we appreciate it democratic presidential candidate michael bloomberg will make a debut on the stage tonight in las vegas we'll take to his campaign co-chair next. reminder to follow the show on twitter. you can also follow me >> please follow @kellycnbc. >> please. >> this is more pathetic by the minute. >> get to 5,000. >> follow kelly.

>> yeah, well, 5,100 now thanks, everybody. >> wow ionanto brag. we'll be back after this he's th. awww. gesundheit. i see something else... a star... with three points. you're in a... mercedes. yeah, we wish. wish granted. with four models starting under 37 thousand, there could be a mercedes-benz in your near future. lease the a 220 sedan for just $349 a month at your local mercedes-benz dealer. we see hat emerson,kthroughs when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved.

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find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. welcome back to "the exchange." we want to bring your attention to smile direct club taking a hit right now. you can see down almost two points this is on a reuters headline that smile direct club top dentist at risk of losing his license in a california crackdown. the dentist, according to the ag, being accused of violating state law, defrauding regulators an acting with gross negligence toward patients while helping

smile direct club grow the business according to reuters. kelly just last week, nbc news published an investigative piece. seasons that piece, the stock is down 14% since the ipo in september, down 45%. we have reached out to those of the california ag an the company and not heard back just yet. >> thank you shares down 4% to 12.50 or thereabouts. the democratic presidential candidates set to face off on a debate stage tonight in las vegas. kayla tausche is there hi again. >> reporter: hi. you will see a new face in the mix tonight. former new york city mayor michael bloomberg will be on stage for the first time this cycle despite not being on any of the early state ballots so far. he qualified by notching more than 10% support in 4 national polls and also because the dnc dropped the requirement for grassroots fund raising. a point the rivals have seized on as well as the ties to wall street and his policies as

mayor. bloomberg is a newcomer will field much of the attacks and plans to dish out some of his own, as well, against bernie sanders. campaign manager tweeting that the research on sanders could fill the facilities in wisconsin. here in nevada, a union of hospitality workers declined to endorse sanders liking the health care and you have seen so in candidates reaching out to that group vying for its support. >> well, we say we're gong to stand with our goals, to be sure to get elected a candidate who will support us. >> worth noting, sanders with a double digit lead here in nevada. the caucus on saturday but not before fireworks on stage here in vegas tonight. >> i'm looking forward to it thank you so much. a great deal at stake and lots of attention placed on michael bloomberg. with us now from las vegas, michael nutter, political

co-chair of the campaign and former mayor of philadelphia welcome. >> thank you, kelly. >> what is the main message mr. bloomberg will emphasize tonight? >> well, he gets the opportunity for the first time now as you mentioned earlier qualifying for tonight's debate he gets to spend some quality time with all of the candidates and more seriously he'll be talking about his view and vision for being president of the united states. why he's the best candidate to take on donald trump through the general election and win and his plans, vision, for a restored strengthened unified america. >> well, i guess elizabeth warren gave you a heads up in the tweet yesterday saying basically if you want do see how we go after donald trump tune in to see how we go after another billionaire trying to buy his way into the campaign. what response should we expect from michael bloomberg tonight >> michael bloomberg has a

record of service. he's a record as a business person and a record as an if philanthropist all the campaigning are buying ads and what we are doing and because we have a message that we need to communicate like those folks have been doing for the last, you know, six to nine months you get on the stage because you qualify under the rules set by the dnc. nothing more, nothing less you know, mike plans to talk about his view and vision. everyone knows that the candidates will be coming after him. you know you can see that coming a mile away he is not a punching bag he is a new yorker and he's a tough guy so he'll be certainly polite, cool, calm, collected but he is not taking a lot of stuff from folks if they come at him they should anticipate a lot more coming back. >> all right i wish it weren't starting so late it's going to be tough for those of us on the east coast to stay

up and catch the action. >> i understand. >> you mentioned he's going to emphasize the message that he's here to communicate that tonight and flip flopped on so many issues including stop and frisk of the mayoralcy that i understand he's trying to win in what's a very left progressive primary. but is he at risk trying to do so alienating the voters he needs to beat donald trump he seems like somebody who's a pragmatic, centrist manager type until the policies start to sound like they're coming from the sanders, warren wing of the party. >> kelly, it is always appropriate to apologize for the negative impact of any policy that any of us may have overseen or supported at any point in time the issue is not the policy but the negative impact that that particular police strategy had and it is always appropriate when you realize that you have

made a mistake to apologize. nothing wrong that that's a sign of character and strength that if upon reflection you realize that things weren't as perfect as you may have thought or they weren't as great as you may have thought and it takes a really strong person, i think, a leader to say, hey, i made a mistake and for that i'm very sorry that's what mike has said. >> a final question which goes to the amount that he has spent so far which i think is something over half a billion dollars at this point, the most ever spent on a presidential campaign and this is still just the primary. how much is he prepared to spend? is there a ceiling does he have a sense of how much to cost to beat donald trump >> mike is focused on defeating donald trump and making him a one-term president, prepared to do what needs to be done in the course of the candidacy and you know well he's also said if for some reason he is not the democratic nominee then he will

not only fully support the democratic nominee but continue to fund the significant part of our operation and so he is prepared to spend whatever it thattings to defeat donald trump in november of 2020. >> all right muka michael nutter, thank you sir. >> thank you, kelly. >> michael bloomberg takes the stage with the rest of the democratic field. shares of tesla have absolutely surged this year and they're up 21% in just the past week the street's biggest bulls said will keep powering higher is next ct the damage. that's how you do it right. usaa insurance is made just the way martin's family needs it - with hassle-free claims, he got paid before his neighbor even got started. because doing right by our members, that's what's right. usaa. what you're made of, we're made for. usaa

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welcome back to the exchange we're closely following tesla, the company getting a vote of confidence from piper sandler aras the firm hiked the price target. that's the highest near term target among any near term firm. he says it is that push into other areas of clean energy that can power the stock even higher, though shares of tesla climbing about 8% today are already near his price target, they're up about 21% over the past week.

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sharp move lower, about 22% at the lows they're seeing a slow down of business in china since january since ports are backed up due to the coronavirus. could be more to follow in their wake we're just moments away from the release of the minutes from the january fed meeting. the markets looking for any details on the fed's plan to end the expansion of its balance sheet, plans for the repo market and any hint that they're ready to cut if the economy stalls joining me is greg if at the wall street journal. great to see you at the start of the show, we're having a debate about whether the market's too top heavy with the faang names and it came back to the idea, as long as the fed is willing to back up the market and economy, there is no reason to get out of names like that. >> i think that's the right take on this, kelly the earningin inings numbers dot support it we have seen a fed rating on at least one front to keep money markets in shape by doing a lot of, you know, treasury bill buying they insist it is not quantitative easing, but tell that to the market the second thing is that the

tone of the remarks of fed officials in the last few months is that even though they like the policy is now, detect a stink ti distinctive bias this coronavirus impact, so i think in that sense, yes, probably the most important cushion for the market here, it is not the fundamentals or the earnings, it is a friendly federal reserve. >> what do you think what does that brain of yours think about the inverted yield curve we were here last year, they cut three times, they got out of it, the unemployment rate is still incredibly low, economy seems by many measures pretty strong. if we're inverted again, do we need to cut again. how would you kind of square all of these different messages out there. >> i was not one who ever thought that the inversion of the flattening of the curve in the last few years was a recession signal and strong sign the fed ought to cut i still feel that way now. we know there are things going on in the markets like the very high level of central bank bond buying that is depressed and

makes it much easier for the curve to flatten that said, i also believe that the rate of change, the fact it used to be steeper and less steep now is probably forecasting something about the economy. i think it would be foolish to ignore the likely impact on the economy of the coronavirus impact we have seen a price of oil come off like ten bucks now that is going to be felt in the oil patch. we haven't seen the manufacturing numbers turn around i'm not in the cam of thinking this means there will be a recession, not even in the camp that thinks it means the fed has to cut this puts a downward bias to what the fed does next they'll watch the data closely and i think they have a relatively low bark to easing if they see any sign that inflation numbers are sinking again or the economy is starting to hit a soft patch. >> you would say the most important thing to watch for in the minutes and any rhetoric over the next several weeks and months is any push back. the market is more than 5050 priced to rate cut if they lean against that, that would be the change, right

>> i wouldn't be surprised if their own thinking among the leadership is that far off we're dealing with unknowns here a few week ago, when powell testified, the coronavirus was still spreading. didn't know the extent the epidemic is more serious now. there are signs the rate of infection is starting to slow. we have yet to see it affect u.s. economic data so relative to where we were two or three months -- or weeks ago, i would say the case for easing is probably a little bit weaker just because that economic follow through hasn't come everybody is kind of in the same position, watching the data, watching the behavior, seeing if there are more warnings like tyson foods or from apple that the corporate sector of the united states is being hit by this unless we see that widespread stuff, my inclination is they will tough it out. >> greg, great to see you. we really appreciate it. the minutes are coming up in moments. i'll join tyler for "power lunch" and see you there.

>> as kelly mentioned, we're awaiting the minutes from the last federal reserve meeting, the dow up about 150 points, 140. half a percent the s&p 500 is up about a half or little more of a percent. and nasdaq and s&p at record highs. ten year yield is slightly higher to steve liesman for the details. >> federal reserve officials, january meeting, said interest rate policy was likely to remain appropriate for a time provided that the incoming data met the outlook. the committee saw some improvements, but they were worried about a new risk that just emerged as they met at the end of january, the coronavirus. there were signs of stab stabilization, participants were optimistic on trade, saying business sentiment and investment outlook were both better they said several would be limited becae