choice for where to put the money in the u.s. market valuations more attractive and see the global acceleration continuing. >> josh brown? >> people will shop on amazon. >> doc >> ebay. same reason as josh. >> weiss >> not putting anything into the market just buy puts. >> thank you thank you for watching "the exchange" starts right now. thank you, scott hi, everybody. welcome to "the exchange" on this friday. i'm kell y evans. concern is in. complacency is out coronavirus spreads. the w.h.o. saying the window to stem the virus is narrowing. plus, the great unwinds. the rate of people dropping pay tv jumped 70% last year. who wins and loses plus, nevada is scrambling to make sure that it avoids an iowa embarrassment tomorrow but experts are worried of a repeat. before all that, we begin

with today's markets a and seema mody has more with us. look at the markets right now. down 210 off the lows of the session. stocks and yields have been falling in tandem, a story throughout the week. defensive, rate sensitive sectors outperforming, utility and consumer staples higher. in the past month, some names up 8% to 10% outperforming the broader market and speaking of safe havens, look at gold. near a seven-year high, on track for the best week since august and certainly different parts of the market reacting to the lower rate. >> nvidia, nevada. tomato tomato. thank you. we'll have more. we begin with yields continuing to plunge. amid coronavirus fears look at the 30-year yield, hit a record low today of 1.88%.

rick santelli at the cme with more on the action for us. rick >> kelly, it is not only equities flirting with history, interest rates and for the same reason prices accelerating, pushing yields down. pushing yields down though may not be good news because, of course, it is associated with flight to safety f. you look at an intraday of 10s, down as low as 143 now we're down about 6 on day. we are down 13 on the week just think bund yields down 4 on the week look at may 1st chart because obviously right there at the beginning of september 1.45 plus the major cycle low close and we have a chance to take that out although we just popped. the close is important now look at 30s. intraday low is 1.88 open the chart to may. the low from end of august finally 10s minus 2s lost 5 basis points to flatten to 12.

finally, bunds, i talked about them down four on the week. look at 10s minus bunds, the closest the two yields been at 1.90 since october of 2017 back to you. >> we appreciate it. before we move on, we have a market flash coming in on e bay. deirdre? >> shares of ebay popping 2.3% today and headlines of dow jones saying that it could be moving towards a sale of the classified unit and could be roughly $10 billion. says that firms including tpg and black stone expressed interest and citing sources. and also saying that initial indications of interest for the classifieds unit due in march. this, of course, comes after ebay sold off the stubhub unit and undergoing a strategic review spurred by activist

investors taking a stake in the company. shares move up, nearly 3% right now. >> this comes after the new york stock exchange parent company expressed interest in all of ebay, right? >> that's right. it's a transformation over the last year, particularly since eliot took that stake and putting the emphasis on payments so this is part of ebay trying to figure out what direction it's going and perhaps looking at a sale of some of the businesses, all of the business. >> sure. shares up little less than 3%. thanks. for years falling yields have supported higher stock prices in fact, st. louis fed president said he is not too concerned of the stock market's relatively high level right now. >> we always watch this and watch financial stability issues and bubble-type issues very carefully. i think that conventional wisdom is that value cases look high but not this level of interest

rates so to the extent you think this level of interest rates is probably the future, which i've been arguing, i think we are okay for now. >> looks more and more entrenched, for sure today stocks and yields declining. joining me is paul christopher at wells fargo investment institute and rich weiss of multiasset strategies. welcome to you both. >> thank you. >> rich, i'll start with you is mr. bullard right that low yields are here to stay? is the flip side of the coin of that permanently higher stock prices >> i don't know about permanently higher we have been neutral on the market for sometime. clearly low interest rates are helpful for pe multiples and the whole story in 2019. lower interest rates surprise change in the fed's policy and you get the multiple expansion. but this year, even with the low interest rates you need to see earnings come through. to move stock prices higher. you know, depending on various

other issues, both covid-19 and economic issues, maybe there's more pe expansion but this is about earnings and so far as we have seen from 2019 they oar not coming in so we're concerned about permanently higher stock prices from here. >> paul, let's tack about the action today a little bit yes, you have bond yields including that 30-year at record lows and notable stock prices though are slipping gold is moving higher. i got a lot of emails and comments from people who are very excited about the upward move in gold but you also have copper up. which usually if this was a sign of global doomsday with spreading coronavirus, you name it, you wouldn't expect metal on the market to be moving higher how would you describe the action >> cautious. we have been cautious on equity markets and we believe that this

year will be a year when earnings are gong to matter a lot. we came in to the year looking for 10% growth in earnings we are looking for 7% growth and with lower interest rates and some modest earnings growth this year, we still think the market can move higher from where it had been before this week and before the selling. >> what about, rich, i'll turn to you, the spreading coronavirus, as it stands people are more and more concerned it's coming to their doorstep. >> no question putting aside the horrible human toll, for the moment, there's a real economic impact originally, we all saw coronavirus similar to sars or mers and clearly it's much more infectious and that so the market is trying to get a grip on that because there's severe economic impacts chinese growth expected to be reduced by 25% or more i think somewhere around six

handle to maybe four and a half or lower the market is adjusting to these issues and that means slower global economic xwrogrowth, of course maybe half a percent in the first quarter and as the evidence unfolds, there's more to come to the downside potentially. >> rich, what would you be a holder of? do you stick with bonds which themselves you could call it valuation problems do you look for high dividend yielding stocks? where would you be >> we are bar belled, stocks and cash bonds had a nice run i think long bonds winning the race in 2019 but stocks,they're certainly - there's in this flight to safety, the safe havens are winning which typically means u.s., large cap growth equities and that's where we're overweighted right now relative to other equities but again to be clear we're not throwing money at the stock market right now. we're remaining neutral to our

long-term position. >> i heard cash. that's certainly not a strong and bullish comment tome real quickly, paul, one more conundrum on my mind today both the dollar up lately to multi-year highs and gold at seven-year highs you would think stronger dollar, weaker gold. we are not seeing that why? >> this is just part of the risk haven trade. people buy gold and the dollar worried about things normally, yes, you expect them to move inversely but we think this is a natural reaction to the uncertainty of coronavirus and we also are neutral on the stock market but do have certain sectors we favor more than others and again would favor the growth sectors that would give you some quality characteristics. we think cash flow, cash to debt ratio's being low and good earnings prospects to find them more in tech and information technology and consumer discretionary. >> we know in the forth quarter,

big five we saw the growth basically. all right, guys. appreciate it. >> thank you. now let's get the latest on the spreading coronavirus. the number of confirmed cases topped 77,000 worldwide. the number of deaths more than 2,200. earlier today, china revised the cases of wednesday in the province to nearly double what it had said and the w.h.o. whorld health organization says the window of opportunity to stem the virus in terms of global spread is narrowing restaurant owners in china struggling to stay afloat with many worried this will put them out of business. eunice yoon has the story from beijing. >> kelly, small and medium-sized companies have been slammed by the coronavirus scare. a survey found 85% feared they could run out of of cash in the next three months and worst hit sector is the restaurant business. >> reporter: usually you can't

get a seat another at this popular restaurant. >> not having customers. >> reporter: they run 14 restaurants like this one in china and he had hoped to open more here this year. the colombian businessman is wondering if the business can survive. >> most of our locations are closed time passing and it is like we start see people to the seller, the staff. rents. costs that we have it is getting complicated. >> reporter: the restaurant is in beijing which is known for its night life and popular restaurants. usually it would be teeming with people but you can see hardly anyone is here molina is limiting the menus, reducing the opening hours, negotiating rent breaks and considering pay cuts for some 200 employees. the government is trying to help small companies like his allowing them to delay pension

payments for workers and pressing banks for cheap loans he said it would help but the biggest concern is how long the outbreak will last >> we are pretty worried we need to declare the company bankruptcy we are trying to avoid that but it's like in the back of our heads. >> reporter: bankruptcies would hurt employment and income for millions of people here and become a major headache for china's policymakers kelly? >> that's eunice yoon in beijing. for more and the latest numbers, tune in tonight to cnbc's special report "outbreak: coronavirus. here's what is straight ahead. coming up, the white house projecting 3.1% growth this greer but with the coronavirus already cutting into corporate earnings, is that a big overestimation is bloomberg's social media spending evading transparency rules?

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welcome back to "the exchange." take a look at shares of viacomcbs down again today and off 30% this year. the shares plunged yesterday as investors weren't impressed with the streaming strategy the company outlined trying to catch up as the pace of cord cutting risen sharply.

it was up 70% last year and for more i'm joined by craig moffitt. craig, great to see you, welcome. >> good to see you again. >> you have the big numbers, managed to go through the companies and add it up for us mor than 6 million households cut the cord in 2019 the quarter -- the pace of decline at the end of the year 7% the fastest ever here's kind of a big pick your since 2009, 88% of the public to pay tv to 65%. right? so where are we going from here? where should viacomcbs' role be? >> look. there's no reason to expect it's going to get better this year. what's really happening now is if the last few years have been about customers getting comfortable with the idea of court cutting, when's really happening now is the cable distributors themselves are comfortable with cord cutting and so rather than trying to

fight it they're letting it happen and once the distributors are on board and saying it's okay if our customers want to leave the video product, it's really hard to see how it doesn't keep accelerating for a while. >> you said, this is important for us as customers of cable, you said they're saying we'll stop undercutting on price an the people who are sticking around to pay us a price for a good profit to look for. we are not going to try to compete on price so the message to consumers is don't call looking for a great call thinking you can cite the industry pressure. >> but let me step back for a second i think what's really important here is not so much that customers are leaving the traditional pay tv providers and going to virtual providers but instead what you are seeing is a separation between live tv and live tv is dominated by sports and news and, kelly, your own

programming. and then entertainment programming which doesn't need to be live so those two universes are completely separating and more and more of the cust mores leaving the ecosystem are leaving because they don't care about sports and news that much and so they're going to whether it's disney plus and netflix and hulu or only the video on demand products and so you are seeing the two universes become more and more separate. >> you mentioned there's two strategies there you can be disney saying we'll be the entertainment distribution product or fox saying we're going to have the best -- try to have the best news live, sports live and pay us for the privilege of carrying that content we prochmised we'd name names. who do you think is positioned well for the future? >> let me start with the infrastructure side of the business the cable guys, frankly, are

fine with this evolution they are after all digital infrastructure companies, not media companies, so whether it is charter or the cable companies, not a problem for them they're fine comcast straddles that world but also owns media assets and there's just no way to spin this as good for the media side of comcast business but comcast overall is still predominantly infrastructure they're pretty well positioned, as well. the ones that really suffer are the satellite operators because they don't have a prodband product to fall back on and losing video subscribers is the whole ball game. >> sure. >> directv at at&t is a mess and at&t has exposure to turner and the programming side which is also looking like a mess at&t looks like they're a loser here and then among the media companies you mentioned disney having a strong play in the

entertainment side diz n also has a strong play in the sports side in espn and i think they're a really interesting company to look at because they're actually pursuing both strategies at the same time and pursuing different strategies for their sports assets and nonsports assets. >> interesting we're way out of time but one or two words if you can are dish and directv going to merge? >> i don't think that regulatory would be the reason they don't merge but because it's really tough to finance a deal like anymore. nobody's going to put debt on it it doesn't have a long-of term future if you have to do it all with equity you can't put a valuation on it making it interesting to anybody so my guess is that it's probably not going to happen. >> wow craig, thank you we appreciate it love to check back in as this continues. >> my pleasure, kelly. >> craig moffett. coming up, could secondhand clothing save the gap?

whether that's a good fit. funny, drecreepy or tough to take reminder to watch or listen to us live on the go on the cnbc app. hexcng iba itwo. when we started our business

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and it's ready to go. our costs for shipping were cut in half. just like that. shipstation. the #1 choice of online sellers. go to shipstation.com/tv and get 2 months free. hi, everybody. welcome back to "the exchange. let's look at the markets. dow down as much as 326 points

at the low today down about 241 right now 1% declean for the s&p 1.6% drop for the nasdaq today here's the stock movers. shares of dropbox up 22% after beating on the top and bottom line and raise the full-year margin outlook and $6 million buyback for a boost today. shares of virgin galactic, back down to earth. they topped $40 yesterday briefly. morgan stanley warned the stock to dip ahead of the earnings next week and down 6.5%, below 35 still up 195% this year. and shares of chewie up today. they cite a highly favorable risk/reward outlook including pharmacy, private label and international demand up 2.5% nearly to just under $30 a share. over to courtney reagan for a news update. >> hi there, kelly former agricultural secretary and iowa governor vilsack with

an oversight rule at purdue. as part of the company's chapter 11 bankruptcy, unrestricted access to the records and employees and will report to both the bankruptcy court and purdue's board of directors. a flash flood hitting hundreds of students and teachers hiking a river on indonesia's main island of java. at least six students are dead five others are reported missing. and flu activity remains high in the u.s. but it did drop slightly in the week this according to the cdc. at least 29 million people have come down with the flu this season and at least 16,000 have died including 105 children a bear going for a walk through backyards west of los angeles in monrovia a day after a bear sighting at a local elementary school. the bear's likely hungry, looking for food be careful, everybody, here in

california and new jersey, kelly. we have bears. >> the kids better watch out. >> yikes. >> thank you very much see you in a sec for rapid fire. right after this break here's what else. ahead, gap goes into the resale business. fit bit stock is out of shape. in nevada, it is a last-minute scramble to make voting tech work and a deep fake video that proves just how far tech has come it's all ahead on rapid fire

welcome back let's catch you up on stories that should be on the radar closing out the week here. rapid fire here to break down the headlines is ed lee. courtney reagan and eric chem i. the gap making a splashy move that i don't really understand they're tapping thread up with a partnership with the apparel resale platform. this comes on the same day another secondhand clothing platform, the real reel higher on an outperform at raymond james. courtney, the durability

secondhand market is proven but what are they doing? >> there's growth but what the gap is doing is partnering with threadup where they send you a bag, send the clothes and sends it to them and value it and resell it on the side. if they sell, you get some money back what gap is saying is if the thredup values that dress at $20, someone paid $20 for it, you can take that $20 that they give you or the gap is going to give you $23 so a 15% increase in the value to then spend at their store. >> competing or partnering >> gap is trying to find a customer not shopping at gap stores they are trying to reward people for being environmentally conscious. so that's a big part of it, too.

i think they try to figure out what other learnings and data they can get. >> kicking off thredup from the process? >> i don't fully understand. >> this is confusing gap is not -- none of the gap brands are touching the used clothing just saying, here, you can use the stores in april as a pickup location we have the bags to make it easier so here's another place at stores for a bag. >> a dropoff location? >> not a dropoff. >> it's a pick-up. >> take the bag, take it home, do the work, send it back in >> thredup gives you money. >> picking up the bag here >> no. just because we're trying to give you a reason to shop with us >> our faces like -- >> too come plit cad a bad idea i don't understand. >> it sounds like a pretty standard wholesale agreement of gap and thredup.

in other words, gap is paying the difference of what they're giving to the customer relative. so it's cross promotional, marketing. the customer who normally would not walk into a gap might now. >> now they get $23 in gap credit opposed to -- >> the amazon partnership with kohl's or whole foods but trying to leverage. >> smart on gap's part that this is not inventory to hold or managing or selling. that's the big --i think with this the challenge for businesses, a growing market, inventory management right? you are not -- where's the stuff coming from? you're up to people randomly coming in, hey, i want to sell it on consignment but creating or sourcing or coming up with these items on your own which is always a challenge with retail is inventory. >> we have to move on. gap shares, just curious, the reaction, down 2.5% today. a tough market but they probably hope for more of a boost

this is going to be a wait and see, for sure. >> take the $20 in cash or store credit for gap. >> cash. >> you always take the cash. speerking about the secondhand market, don't miss aaron kessler who has the bullish call on the real reel and we'll talk about that next up, going to talk fitbit. we are changing topics cnbc.com reporting spacex is looking to raise capital to launch sky high. welcome, sir what really caught our eye about the story is how much will spacex be worth now? >> $36 billion. >> wow wow. this is a big piece of tesla. >> it is not those are separate entities. i believe some shares intermixed elon musk keeps them separate. >> this is going to tap the markets or raised the capital? >> they're going out and raising

$250 million right now not expected to close until the second week of march according to sources i spoke but this is a continuation they raise $1.33 billion last year across 3 rounds with semiregular l semiregularity. >> why do they need that -- elon musk made so much on tesla. >> sell more tesla stock. >> the percentage. not like we raise $10 billion. but a quarter billion. seems so small. >> true. >> right >> it is small and typically the rounds are in the hundreds of millions of dollars range. that's definitely a fair point the reason to raise now is three major projects all in critical development this year. they have the crew dragon capsule to fly nasa astronauts in a few months. the starlink satellites, launching $12,000 satellite program and then the starship of

a massive mars rocket ship developing in texas. they have capital intensive projects right now. >> you wonder why they don't tap musk saying -- >> why is an investor putting the money in >> do you want the company funding itself and how liquid is he really? >> doesn't want to get rid of tesla. >> not a wework situation of money rolling in, we don't know how it's used. is it -- used properly >> as far as we know it's been used pretty well themselves with a successful launch business of $2 billion in revenue a year. >> real money coming in? >> real money coming in and doing the next level projects on top of it. >> sheetz, we expect it. sheetz in space. we appreciate it, sir. michael sheetz. how about this consumers can track when their friends pie pizza on venmo as we

know but soon you might be able to share your investment holdings on robin hood with a few feature today of profiles set to roll out nextweek to allow users to track the investments allocated, follow lists of stocks and custom user names and profile photos genius to apply it to stocks >> i don't know. >> this is the worst think about what - >> you don't even like venmo >> the markets all about fear and greed and what everyone else is doing and i need a trade and too early, don't make any money. this is going to xexacerbate everything we hate about the market overreactions. people go to one way and then the other way. why follow people? >> exploited imagine pump and dump schemes on a system like this. >> influencer. >> especially -- right especially the way social media works. >> until someone is hosed. you have only the credit bltd you have earned.

it's interesting to see does it create networks like venmo between you and your friends or networks like spotify where people want the people with the -- obviously in the market, has to be people worth following unless it's a -- >> spotify is a playlist, move on to the next one with this, spending money on stuff that doesn't work out. >> bitcoin thanksgiving. right? >> very well >> everybody at the thanksgiving tables they don't know how the markets were working and we were like, oh no. >> eric's point, will hedge funds love this to lean against -- exploit that to say, all right, we know once it reaches a certain -- >> ultimate dumb money move on robin hood following each other. do the opposite. >> nifty idea. >> the retail investors is -- they used to say that's the dumb money but last couple of years, the institutional -- there's a lot of stuff people saying, retail is the new smart money.

maybe the start of this year is different. but then again who's to know what ends up happening with tesla or the virgin galactic >> where tesla is right now. exactly. >> this is a nifty idea and needs to be controls in place to turn it into like social networking for investors kind of scheme is what they're going for here just the way the dynamics play out. >> talk about the spread of misinformation, yikes. >> with money behind it. finally today, the technology of deep fake videos have come so far check out this one orbiting the internet today with amazon ceo and tesla ceo inside the pilot episode of the original "star trek" series. >> is this a deception do you intend to destroy yourselves >> just to show you how primitive humans are >> we had not believed this is possible. >> so we have seen deep fakes

before and talked about them before and the tonight of this one is to just kind of show how easy to create one and how - >> how good it was. >> such a good deep fake. >> we know how good it is. like they did the two-hour movie. they were able to fake a chunk of it because the shots just the head and not other things moving did it take a day to do it or six months to do that? >> it is successful. the specific episode they did a pilot episode, a favorite episode. no kirk in this. right? clearly a signal to the hard core trekkies out there. deep nerds. >> deep nerds. >> deep nerds. the fact that bezos bit is especially looking so good. >> now if you're out sick, you could be hosting your show every time and plop your face in to the rest of us. >> depends on how much work goes into it. to your point a. month's long effort there's a more real world parallel to this in the last 24 hours, you

probably saw the bloomberg debate video. >> yes. >> where it's edited to show there's a longer pause than there really was asking -- what was he talking about >> who else is starting a business. >> and people -- so now the question is, we have heard from the social media companies, twitter saying that this edited video violates the deep fake policy. >> this is not a deep fake but an edited. >> it is satire. i see it as satire would a reasonable person view it and think it's real that's the test. i think facebook comes out correct on this one. twitter, i don't know where -- it is interesting they're -- they say it violates the policy. it is still on twitter and can watch it. >> those two companies taking a different approach twitter banned political ads facebook has not we'll leave it there for now still, it just feels like if bloomberg with the money behind him is the one to watch -- we talked of trump in 2016 and the

trolls i think it goes back to why bloomberg has a tough time. >> just deep fake himself as the president getting the oval office i don't need to win. i paid the money to look like i'm there. >> maybe he'll have more fun that way thank you. we appreciate it the scramble to get the tech to elect up and running up in nevada whether the democratic caucus is a repeat of iowa or if the bugs are worked out next. as we head to break, look at the most searched tickers on cnbc 10-year yield. the dow in general 'lbeig bk.wel rhtac

welcome back the white house projecting gdp growth of 3.1% each quarter this year if president trump's economic agenda is fully implemented. that growth target's been elusive even as the economy dodged hits lately including tariff and trade wars.

here to tell us if and when it can be achieved, welcome >> thank you for having me. >> so 3.1% does that mean an end to -- a lot of people say without the tariff and the trade issues, we would have gotten there last year how do we get to it this year? >> yeah. so basically there's a lot of positive forces starting in place with the coronavirus under control which we're hoping will be sort of a short-term effect there's a lot of things that hit us in 2019 that will basically provide an upside in 2021. boeing shutdown which is a big deal for exports trade agreements that we struck in early january usmca and phase one with china are also great for export markets. in terms of opening up so we're pretty optimistic we think this continuation of

sort of a trump economy that we have seen, it's very, very different from what we saw prior -- in the prior part of the expansion after the great recession. >> let me ask you about the federal reserve because last year three rate cuts did a lot to shore up the economy. do you expect they're going to cut rates this year? should they? would that support the growth target >> respecting independence of the fed and do not comment on the desirability of the policies but one difference that we can talk about is sort of what the affects are and if you look at the early part of the expansion it was a very easy monetary policy of zero rates throughout until '16 and '17 and '18. we actually -- what happens in an expansion is that you have rapid growth following a recession, particularly a financial recession than the one we saw as the one we saw after the great recession and growth settles down

it's kind of the opposite this expansion. very, very slow growth initially even though it's expansionary and monetary policy and even though we had eight rate hikes and now come down a couple times, three times we still had a much accelerated growth in the trump economy so looking at what happened in 2016, people predict a continuation of an obama economy would look like. and so, basically we had the answers to what people thought the continuation of obama, an obama economy look like an now want to claim a continuation of an obama economy but shattered the numbers. for example, three and a half times more jobs created with 7 million jobs opposed to 2 million jobs that were predicted in 2016. >> let me just ask you because we have time for one more. you had an annual report calling out housing saying major cities like san francisco, los angeles,

washington, denver, baltimore not building enough to meet demands. it's driving home prices up and hurting income inequality across the country. what would you like to see done about that >> it is a state and local issue but concentrated in a very few set of citys that are very intrusive in terms of government policies restricting supply in the cities and therefore raising prices particularly worse now with sort of a housing market with low interest rates coming in and a surge in demand because, you know, we have this blue collar boom that's raised demand for housing. people working more and earning more and it could be a dangerous situation. but it's really in a few locales or cities with very restrictive government policies on how much housing to build. >> got it. highlighting that it's policies contributions there creating

this we appreciate your time. >> thank you. >> thomas phillipson of the cea. michael bloomberg's big spending is becoming facebook's big problem. how the social media tactics could change their transparency rules is next. the "the exchange" is now a podcast. listen to the favorite parts of the show you might have missed sign up on now on apple, spotify, stitcher and google podcasts

we've got some drama in iowa reporting results. >> it's 12 hours and we're expecting the results from night's caucuses >> chaos in iowa still no results from the caucuses the majority of the results, 5:00 p.m. >> that was just a glimpse of what we've heard as the spotlight turns to the caucuses this saturday, what

iowa did, what's going on with this technology? >> there is. tried to use the same made by the same provider and didn't work it wasn't until after. decide to scrap the plan and come up with a new one

>> the software is a security, they control these about 2,000 ipads, we're going to run these caucuses and when you open up these. it's two letters, caucus calculator and the confidence. the results more so -- >> not ready for prime time, why not just use the paper until something, it's such short notice

>> so what happened in nevada is caucuses it's messy. always made, but what's happening is that it's never happened before. early voting totals -- and they're going to live caucusing. if it doesn't work, if something goes wrong, they're going to have to open up these envelopes with their paper printout and flowcharts that describe step by step how they're going to incorporate those early votes into the live caucuses and it's

a very tedious process >> tedious, messy, often true of voting what do you think will be the take away from what we've seen this year? how for future elections are we going to make sure that these results are, especially for the fall even, that these results can be trusted >> well, as the security expert told me, the technology to take voting and make it an online digital process is not even in its infancy yet, so i think what election officials have to realize is that technology can play a role in helping elections take place, but it is not going to replace the you know, paper ballot system. at least if we want to have secure and safe elections. so we have to be careful about the technology they use. >> yep reed, good luck tomorrow good reporting

we look forward to seeing the results and hopefully there aren't any more hiccups. thank you, sir michael bloomberg's campaign spending could make a lasting impression on facebook's rules we'll tell you how right after this at emerson, 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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michael bloomberg has spent $48 million on facebook ads. it's raising transparency concerns for facebook. julia has more z >> well, those $48 million spent ons, that was traditional advertising, but in addition to that, the bloomberg campaign is hiring 500 field organizers who are tapped with localizing the supporters for the candidate and that includes sharing posts on social media now a source at facebook tells me that the company's concern about the lack of transparency around campaign employee that don't identify that they work for the candidate. as those are posts and not ads, they're not tagged or included in the interactive library facebook is considering taking steps to make it clear that people posing messages of

support are paid employees they recommend campaign employees to make their relationship clear on their accounts rules on internet disclaimers haven't been updated since tuition. >> yeah, they are begging for regulators to help them sort out these issues thanks very much that does it for the exchange, everyone i'll see you on "power lunch." >> yes, you will and we will see you on "power lunch" in just a moment i'm tyler mathisen and welcome to "power lunch. here's what's new at 2:00. coronavirus fears spooking wall street as the number of cases in south korea and china tick up. stocks are falling treasury yields sinking. record lows. is the move signalling a more fwra greater amount of market pain? plus, it is momentum stocks that are going to need. we'll explain why the resurgence of the retail trader, the little guy, could be causing more