the slowdown in china. the one on the right is after coronavir coronavirus. you can see the massive falloff of the number of flights people worried about how it's spreading around the world. have a great weekend, everyone thanks for watching "power lunch. >> "closing bell" starts right now. well cub to "closing bell. i'm morgan brennan in for sara eisen thattic a look at that on stock. stock is down. another 9 1/2, keep in mind, the rest of the market is lower as well let's have a look at what's driving in the action.

plus an increase in news coronavirus cases, declines are being led by tech. microsoft, amazon and apple all sharply lower today. thomas peterffy is the chairman of interactive brokers he's our closer today coming on the heeled of the tie-up will he now sell his companies we'll ask hem later in the show. clearly coronavirus, again still only down just over 1% the markets overreacting >> i think if you do the math, basically if you lieu -- that only represents about 1% of the earns of the company

no indication that this is nothing but a short-term problems >> let's get on the base stories. seema mody -- steve liesman tells us what the fed is talking about. first, let's start with seema. that safe haven play is certainly evident in different parts of the market. one standout is shares of the post 5 a new record high, up 7.6% certainly outperforming on a day.

a pause in the u.s./china trade relations. according to our ceo deere did address the coronavirus, expecting freight costs in the second quarter related to parts availability, and if the coronavirus continues, it maybe impact the ability to procure parts back to you. from your perspective, a longer-term impact on the market what does that do to the inflation picture? >> so we don't think we're going

to get a big change, just to de gress, the deere numbers are positive in terms of u.s. a agricultu agriculture. so we are seeing pockets >> top fed officials have been discussing how the coronavirus could affect the economy steve liesman has the highlights for us markets are taking a sharply different attitude along with plunging stock prices, the chance of a fed rate cut surged that is a 58% probability a month earlier than it had been at such a level. there's a chance of even a second rate cut in december. that's a 62% probability, comes as two fed officials this morning said their base case if the virus does not spread

outside china and the fed can keep of rates unchanged in that scenario. >> we know it would be disruptive to a lot of the supply chain >> they're not expecting a to lay off folks. they're not expecting an extent the negative impact. >> james buller said the u.s. economy is strong. but both indicated an openness to change rates if the virus spreads. whether we look at the statistics, the 30 years, the ten year is moved year to date from close to 2% has the

economy's outlook gotten worse >> it hasn't, wilf i'm trying to have conversations here about what's the economy look like without the coronavirus? trying to model that in. in general, i'm getting this idea that it's pretty strong still perhaps from the tariffs, but ultimately the idea is the economy is runs at 2%, low unemployment, and reel it's three cases out there. one where the virus remains in china and you get a hit from that one where perhaps it spreads to the asian continent, and a third one where it comes over here it's almost that third one or between two and three where the market for fed funds seems to be raiding now. really beginning to internalize

worst outcomes here. charlie, i've got to get your talks about don't fight the fed when it comes to the market, but giving the stimulus measures from china, the fact that those chinese stocks, best week in ten months, is this another scenario where it's like don't fight another central bank >> good question i think i'm aligned with our fed on this. i think they're saying that -- they're saying that cutting u.s. rates would be a sign the weakness frankly i think a cut in the u.s. would send a snarl that they don't want to send. so at this point, i can understand why the chinese will be doing things to 345ik up to what is a serious problem there, so i think it's okay to go with our fed. daimler becoming the latest automaker to warn that the coronavirus could hit the sales. phil lebeau has the details. >> not a huge surprise given the

droves of sales. we'll talked more about that in a bit, issuing a warning saying, look they're just not outlining how much that impact will be at there point keep in mind this is a company with several -- and one of the largest luxury markets in the world it's a big pardon of mercedes plans. they will resume protection of mercedes over there. meanwhile, when you look at the japanese automakers delaying reopening some plants, while toyota will have its plant up and running next week. in the first half of february, take a look at this statistic. during the first 16 days of the month, sales in china, new vehicle sales in china dropped 92%. to quote a couple people ethere,

nobody is going into the showroom easy to understand why guys, back to you. yeah, certainly. phil lebeau, thank you. two more companies with updates, coca-cola and lululemon, coca-cola confirming its full-year guidance, but it expense one or two cents shaved off first quarter earnings lu lu lemming saying the majority of 38 stores in china have been closed since january 3rd. >> when you hear though statistic from phil, does it not make you rethink the level of concern? i guess it's just auto, just china, but big numbers. >> we're going to have a lousy quarter. >> it's only 1%. so the more dangerous --

mortality rates. i think we'll get one bad quarter, and then i think we'll return. >> do you think this is why the russell 2000 has outperformed the major averages it's only down about half a%. >> less exposure enter national, less exposure to china where you don't want to be is a company that's been trying to grow true chinese sales. the russell 20000 as you know is much more of a u.s.-based index. shifting our focus to wells fargo, which is apparently close to a settlement. the settlement would total as

much as $3 billion and barred from the banks -- following civil charges for, wells fargo has struggled from recover from the controversy the stock down around 5% since the fraud first came to light three years ago. it's up a bit. if we do get news and confirmation of this settlement for the company with the s.e.c. and doj, it would cross off the list the biggest thing would still be remaining the fed asset cap lifted so we need to get confirmation of that, and the side of the fine, they paid about $4 billion

in total in fines since 2016 the remaining question would then be about individuals. i think people were surprised at the size and scale of fines from the civil charges we learned about last month on individuals. we would still need to learn from the doj if they're performing anything further. the first step is to see today's story confirmed. >> i found amusing, what, the stock is down half a percent from the news of the situation >> banks have soared relative to the banks, it's down about 5%, i mean, the timing of the latest flurry of activity here from regulators is quite interesting, i would also add. i think charlie scharff is trying to get things going "wall street journal" today suggested that regulators it interviewed tim sloan.

has he been able to shed more light? it's interesting that -- 17.5 million fine played by john stump. another hasn't settled, but is being fined. tim sloan was excluded from that he was never in the front line, but interesting that he was interviewed in the process the stock is up today. of course, if they do settle this, it's about $3 bill bron, something behind them, regardless what did you think about the banks? clearly all down today >> unfortunately i was at solomon brothers during the '90s, and the lesson from that is you just have to get it behind you wells fargo has a market cap of $200 billion, so these number are tiny compared to the value

the reputational hits have been the ones that have been difficult. i don't want to minimize this, creating these accounts was not good, but people didn't lose money in these accounts. this was bad, it should be punished, but it really is something that should be able to be settled. >> the fed asset cap was never going to be listed until you have settled with other regulators it doesn't mean one follows the other, but i don't think the latter could happen without the former tom peterffy, find out if he's looking to be a buyer or seller. plus investors have been hunting everywhere for yield we'll tell you where you can find yields as high as 40%, that is if you can stomach the enormous risk. cbsviacom, right, charlie? >> to be continued

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welcome back let's take a look at dropbox, it's up 20%.

weak revenue guidance, that's down 14%. ebay popping on a report that the company is nearing a sales of the classified ads business which could be around $10 billion. it's up. u.s. 30-year just hit a record low the ten-year pays just 1.4%. in europe bond yields are negative japan is paying 0%, and emerging market yields go up, but so does risk eric chemi is on the hunt for us. >> a lot of zeros there, but emerging market dead soaring 14%, inflows for january topping $8 billion in argentina, yields spiked into the 40% range, but they go with spiking risk. argentina delayed a payment due last week, so the latest default

in a long line of defaults in recent years most money managers cautious to diversify, go in with mutual funds. that yield is 4.5%, with exposure to brazil, egypt and saudi arabia, and there's corporate debt, yielding more than 6%. emerging debt is good for investors wanting to diversify these bonds come from companies and countries with fast growth potential mean the value of the bonds can jump quickly on the negative side, money manager peter tenussen says the yield will never be high enough to match the risk. he makes the case outside the u.s. can change easily and go against americans. he tells the company to keep the money stateside. political and local market

volatility can have investors running for the exits, by the time you sell, it would be too late fluctuations, can turns a winning investment into a loser. of course, for more ideas in emerging market bonds on the hunt for yield, check out cnbc.com back to you guys. >> eric, charlie, your thoughts. your eyes look a little bit there. >> there's a lot to focus on there, but i'm still focused on the 30-years 1.9 that's the lowest number in history. >> are you surprised to see the move pretty dramatic. >> we have a lot of people that are scared we have a lot of people that think the coronavirus will turn into a global slowdown when that happens, there would be a flight to safety, but i want to say, we've seen this before, a year and a half ago in the fourth quarter of '18, we had the inverted yield curve, everybody predicting a

recession. the bond market is the most pessimistic market there is. right now, it is really scared, but i just don't think it can justify less than 1.9% on a 30-years bond. >> we want to come back to some of the ideas that eric was floating partly coyne, probably because of a strong dollar, if we can get through the fears that have kept the 30-year down, could we see a bounce back? if the dollar did weaken again. we've got 39 minutes left before the bell. we're off session lows, but the

dow and the s&p are both still down it looks like more than 1% right now. up next it's the world on the street find out which shipping company deutsche bank says may be two relia reliant. and hitting the tech sector heart again, where the tech stocks are in trouble, later on "closing bell. robinhood believes now is the time to do money.

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bell." time now for "word on the street." say u.p.s. disclosed in the 10-k filing that amazon represented more than 11% of the company's revenue last year. deutsche bank maintains a hold rating on u.p.s. suntrust is down about 3%, downgrading shake shack to a hold the firm session while the company is one of the strongest growth stories, potentially disappoints guidance and believe the u.s. business will remain two times larger than lyft. equal rae on lyft. uber has recovered quite significantly.

that's a huge improvement to where people's fears were a inned number of europeans countries, people have country down harder. they've been discounting prices way below where they probably needed to any those on whether it's u.p.s. or fedex are there opportunities? >> u.p.s. has a high beta, tied

to activity, but you're slight will you right they are usa liesing fixed assets, but amazon has been tough to do business with. we're not far off the session lows. coming up your last chance trade. >> plus where growth stocks are on a bubble. as we head to break, here's a check on bonds yields are lower hitting a record low stay with us legendary terrain in telluride,

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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. welcome back to "closing bell." just under half an hour left on the session. we are quite close to the session lows we're down 2% on the nasdaq, over 1% for the s&p, just under

it for the dow real estate staples, utilities top explaining there, clearly the defensive terms. technology very much the laggard down 2.5%, also the worst performer for the week as a whole, down close to 3%. here are the three things driving the action today new daughters this morning shod new business activity stalled in the month of february. plus an increase in krein virus in china is weighing on sentiment. declines are being led by tech they are all sharply lower it is time for cnbc news update with tyler mathisen. >> thank you very much the democrats are looking for avoid a repeat of the election chaos they suffered in iowa, as they prepared for nevada caucuses. >> one of the ways to avoid

that, they got rid of the app that iowa used, but this this also meant having to train somebody on something new. the early voting may be the biggest problem. it required voters to choose three. spacex looking for the sale of new shares. the move would value it at about $36 billion, up from a little other $3 billion. prince andrew being targeted gloria allred, a school bus was driven by buckingham with a picture of the prince and a message, asking him to call the fbi and answer their questions about jeffrey epstein. that is the cnbc news update at this hour back to you, wilf and morgan. energy has gotten slapped over the past decade, the worst performing sector, and that's in

part, of course, two oil's volume tiff. rahel solomon is having a look >> take a look at that wild ride over the last ten years. you can see the prices spiked in may of 2011 at around $114 a barrel fast forward to february 2016 when that growth started to slow and also rising supply concerns. you see prices tank to around 2550 a barrel. oversupply is still a major focus, especially as u.s. production has more than doubled in that time frame one company we have seen trade almost in lock step has been marathon oil on the other hand, two big refiner names, they have outperformed the sector and largely avoided crude's crush. they're both up between 200 and

400% morgan, back to you rahel thank you very much. growth stocks have been red-hot. as you can see, significantly outperforming value. or nest guest says we may soon to see a bubble forming. joining us is rbc capital market's managing director lori, great to have you. >> good to be here >> what does it mean >> we haven't used the word "bubble" exactly whether you're looking for performance or valuation, we run a lot of different screens against crowded stocks so you might not use the word bubble, but i think eventually we'll get a transition back into the value trade. >> you were thinking there were grounds for a bit of a pullback anyway. >> yes. >> therecent pullback, is that the start of something -- >> frankly we've been looking

for a pull back the last six months, and it just hasn't happened i think the virus is something, as i've talked to investors this week, a lot of people say we have no idea what the impact will be. we don't want to overreact, so we are doing nothing but what we got this morning was evidence of, hey, there is an impact here, something finally tangible we can see where it's having an impact we'll have to see. >> so given the fact there seems to be overextension happening, given the concern around coronavirus, where would you bet, i get, telling investors to be putting their money the two sectors, it's or favorite cyclical.

we like the industrial sector and we're not oblivious to the exposure there we think a lot of bad stuff gots baked in, and we these you have derinked that sector the utilities, that's something we kept an overwait on we're going to get some turbulence this is our insurance policy, and frankly i think it's serving you pretty wet on the utility sector, let's put this virus stuff aside people who continue to move into the equity market want yield there's not a lot of political risk or china risk, and frankly i don't think it's that overvoomed.

i would agree, it's been a wonderful place to hide. we would is 00% agree with the industrials. if you're bearish on the economy, you'll have a tough time on the industrials. >> both of overweighted in esg funds right now. that's one area in the market, just putting these virus, macro issues aside, that's a growing space seen in both etfs and active, and there's a leaning into those two sectors what about the dollar? >> the rule of thumb in nigh world dollar is up year over year, you tend to be downward revisions to earnings expectation.

i think we're going to hear a lot more about how the dollar pressures have gotten exaggerated. >> lori, thank you we have got less than 23 minutes before the bell. here's where we tonight with the major averages, moving back to session lows, with the dow down 300, back below 29k, the s&p down 1.3%. the nasdaq 9 biggest laggard up next, we've got your last-chance trade. >> on the heels of morgan stanley etrade deal, what will happen to interactive browns thomas peterffy will join us after the bell

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the moment on the s&p 500. you have the likes of apple, nike, intel, jpmorgan chase, decliners today, about 270 points charlie, what is your last-chance trade? >> it's snap-on, the maker of tools, mostly used in mechanic shops, a wonderful brand we -- if you go to any tool shop and ask, they almost always have snap-on tools. some concern about the auto market, but good news is that's good >> one of their competitors announced a $1.5 billion of consolidated aerospace manufacturing.

>> if you have the real case, stanley should be buying snap-on. that's a combination that makes a lot of success >> do you know what it was trading at when you picked it on the 30th of july >> a lot higher than today lasts trait cvs, part of the problem is they picked a terrible name, but anyway, they came out this numbers that were really, really bad as if it was good. and revenue down 3%. they gave off the sense that they weren't on top of the combined company the guidance wasn't that bad, but the results in the fourth quarter were so disappointing that the stock god creamed. >> what are you thinking about it now

what's the valuation at? what's the -- >> it should make more than $5 a share, the stop is under 30, so this is something like a p.e. of 5, which doesn't make sense unless the business is going away cvs has been adding subscribers. they'll have a -- the new "sonic the hedgehog" movie, a new "quiet place" is coming out. it should be a good year, but i was so wrong about the fourth quarter, my confidence is clearly shaken tough week for cbsviacom this is the last commercial break before the final close of the week up next, uninterrupted coverage when we take you inside the market zone. you can always watch or listen to us live "closing bell" will be right

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12 minutes after the trading day, we are now in the "closing bell" market zone, commercial-free coverage. >> joining us to break down the crucial moments, is charlie and oliver but first let's take a look at the markets right now. moving back towards session lows, as we head into the final 12 minutes of the trading session. you can see the dow is down 263 points, about 0.9% the s&p is also down about 1%, and the nasdaq is the biggest laggard, down nearly 2% right

now. on pace for all the major averages to close lower, first time we've seen all three. >> oliver, let's start with you, most of the sell-off has come today, and clearly there are macco reasons for it. >> i think both the cdc and w.h.o. send out some powerful messages today you had some weak data out of china as well, as the u.s. here in services and manufacturing. so there's fundamental reasons to grow more concerned as the coronavirus continues to spread. look, 1% down isn't exactly the end of the world it sounds grandiose, but in reality it isn't, especially with a strong 2019 like we did but you have to be worried and you have to keep watching and seeing what companies are saying about q1 earnings.

>> charlie, your thoughts on this do you see any pullbacks as buying opportunities >> i would be pounding the table if we didn't have the valuations that we have we love people focusing on short-term problems. we do happen to believe the coronavirus is the classic short-term problem, but we came in the year at about 19 times forward earnings that makes you a little more cautious, smaller stocks and value stocks are closer to 12, 14, so that's where we're more optimistic. clearly for most of last year, certainly the second of last year you needed yields to rise. >> it's tough to imagine one of the things that i think investors getting wrong is they think if we lose a bit of economic activity now, we'll make up for it next month or in april. that's not really how it works,

right? part of that loss is lost forever. so it takes a while to cycle through. to your point on a valuation as where we are, you need earnings growth to power stocks you will not get multiple expansion, you won't get the fed to lower rates so you have to be cautious here and stick with what we consider to be only companies that have very strong balance sheets, good cash positions, and are able to weather the storm. >> just a slight pickup in the last five minutes, the dow is only down 1% deep shares are surging after reporting earnings beat. john may is sounding optimistic, calling it a reflection of early signs of stabilization in the u.s. farms sector. charlie likes this we've been predicting this they got crushed with horrible weather last year, farmers were

not buying new tractors. deere is seeing the recovery based on expectations of better farm exports to china, so i love that optimism, which we think will translate to fertilizer prices. >> we own deere, it's not an overweight, but a report like this certainly gives us more confidence >> altria? >> hey there, wolf, another situation where government regulators are looking into e-cigarettes it has an investment in ju l. we're learning that documents have been questioned from both companies and both companies have responded juul has turned over it documents with projections that were shared before the deal, according to "wall street journal. the ecigarette back took a 35%

stake in 2016. since that investment, they have written down about two thirds of that investment. frank, thank you kate rooney has more hey, kate. >> hey, morgan, that's right etrade this week following charles schwab and td ameritr e ameritrade, but we've got fidelity, take a look, by far the biggest, not seen as a takeover target. and then, of course, the fin tech names robin hood is the biggest private trading app with a 7.6 billion valuation. it says it's only about a million users behind etrade. it doesn't say how they measure

the users or account balances. others tell me it's rapt customer growth with low acquisition cost, could be a target for larger companies-to-looking to expand we will discuss that when we speak with today's closer, chairman thomas peterffy that's coming up at 4:00 p.m. eastern time a quick comment from both of you? >> i just don't think the low net worth part of this market is a great play to make moment. i think the high worth area continues to be profitable i'm surprised at the price they've been weighing. >> it's emerging, though >> henrys, high earners, not rich yet i think there's an turchlt for high margin business if you automate, if you use

robotics, artificial intelligence, there's a path where it can be very, very profitable i think that's what they're looking at as a way to do it. >> it's been a volume it ilweek for virgin blackive, still up 16% so farthis week. nearly 200% higher in 2020, whether the move is fueled by investors betting on the future of space travel or short sellers, the wild swings have fueled much debate on the streets this week. you can see shares are down 9.5% meantime cnbc reporting that another space company, elon musk's spacex is looking to raise money to bring up the company's valuation to $36 billion. virgin blackive reports earnings after thursday in terms of spacex and the funding news there, that was broken by cnbc

you can real more about it on cnbc.com does elone musk wish he had his space company listed >> no, i don't think so. >> no? >> the ceo and president of the company has said to me in the past they would potential consider taking spacex public once they're doing regular trips to mars every time they tro these funding rounds, it tends to be overstretched, so they can afford to be picky, too. >> elon doesn't want more regulators involved in his life than he needs to. >> despite that enormous run-up. amazon taking big steps to prevent coronavirus have an impact hey, deirdre. >> it also exposes it to global shocks, and that's the third-party mvps, which now make up nearly 60% of the

marketplace, unlike a wall mart or target, amazon can stock fewer items and put a greater relianc reliance, so they're getting ahead of potential shortages, by posting alerts on central sellers s. like this one, that recommends vendors taker proo cautions back to you guys. >> deidra, thank you let's check in on the markets at the moment. we have picked up a bit off the lows the nasdaq is now down less than 2%

is. >> i think you deep an eye on the dollar on treasury yields, also on gold >> i've got a problem, with gold being up significantly, i think it's near 1650 right now, and treasury yields coming down. that's a cautious sign, i'm being told. why? a right now we're trading at 147, but on the right sides of your charl, that low the cycle on early september is in play.

it's at 191. it's down at 191, 48 basis points it is having a nasty week, but still up on the week the nasdaq with the louest close in two weeks obviously concerns about the coronavirus i have had among the chip players, now down for the year todaysh texas roadhouse, both hitting new highs. stock of the week, stamps.com, take a look at this stock, nearly doubling this week.

shares up about we're at the end of this week s&p 500 down 45 points, the dow jones industrial average below 29,000, down 2.25 points welcome to "closing bell." >> let's get a look at where we finished the week with the markets, stocks settle here, the dow finishing down -- 227 points bo low the 29,000 mark, or about 0.7 of a percent the s&p finishing down 1%.

3337 is your level there finishes down 1.8% all three of your averaging finishes the week lower. thomas peterffy, we'll get his take >> and still with us, from aerial investments. >> charlie, i'll start with you. where we ended the week. the one thing that it does wrong

in our opinion when we look like we're getting numbers, tapping in the exposure, the market trades up. our position is that this is a temporary phenomenon but that we're going to get back to -- but ontough days like today, the market thinking worse. >> alisha, where do you -- >> our feeling is actually, this is probably more than a one quarter phenomenon, therefore the market really has to absorb some of the risk if you look at some of the data coming out, what's going on on the high weights and what's going on in coal production. you know, the country is still shut down. one third of the labor force is migrant labor. that migrant labor is still stuck at home for the most part.

there's nobody a the roads the businesses have to get going and get going soon to make this a one-quarter phenomenon if it goes another two to three weeks, that extends into the second quarter there's a lot of uncertainty with the data we're getting. this is a good way to express discomfort oliver, i want to get your thoughts, it's been risk off this week, safe haven trades, everything from gold, everybody finishes in the red this week, but relative outperformers, it was real estate, it was consumer staples, are they the places where investors should be putting their money to work? >> well, i think if you have cash on hand right now, you keep your cash on hand. we're not short-term traders we're not going to switch, to your point earlier, just because

there's a beginning of a trend, we're not going to chase it right away but this could turn into a two or three-quarter phenomenon we don't have any cures, no solutions, no vaccines, and this virus is morphing. there was a report out that the coronavirus cases found in iran are a different strain, and did not come out of the china. the bottom line is, yes, defensive sectors are outperforming as they typically do, but we think that even within the more progressive and aggressive sectors, there's value to be found, there's individual stocks that represent good momentum and a good trade, and you stick with those >> charlie, the fact that the transportation average, the dow transports actually finished the week slightly higher, i mean, you see what's happening with supply chains, you see what's happening with freight and

freight rates. is this just a situation that are names because they have become devalued plays? so that sends to be an isolated problem. the good news for transports is they are not exposed to china. they are a u.s.-based index. there's some breaking news here on wells fargo. reporters earlier today they may have been ready to settle with the s.e.c. and doj that has indeed happened $3 billion will settle three different issues as a result of criminal and civil investigations into the seams practice dating back to 2016, when it first became public. it also involves a deferred prosecution agreement. it ties together three outstanding issues hanging over

wells fargo, adding to about the rough total of $4 billion they have paid over the course of the last four years. probably going to be taken as relatively good news by the stock. it was, of course up on the reports today when the other banks were down, and scanning through the release, no sign -- any clear announcementon what they're thinking in terms of charges towards individual there have been civil charges to individuals, but we don't know about anything further there's been some relatively clear criticism, despite the knowledge of the illegal practices, leadership failed to take sufficient action, but overall, all three outstanding matters with the s.e.c. and the doj, including a civil penalty that would be distributed to investors. of course, the big outstanding

punishment remains the fed asset cap, and remains to be seen when that would be lifted, but unlikely it would be lifted until this is done charlie, what's your take as to whether this allows the company to fully turn the corner >> i would drop the "relatively. i think this is very good news this has been a long time in the headlines. it's taken a long time it's been an overhang on the brand, so i think any settlement is good news it's a $200 billion market cap a, i look for the to be to be up more than half a percent tomorrow what's your take, as it compares to the other >> it's obviously been cheap and this is an overwhelming positive for the investors in wells fargo. it puts the matter largely

behind them. it gives visibility. i agree that a 1.5% of market cap fine isn't the end of the world. it's still a lot of money. we don't own the financials generally speaking, just because there's so many issues with the balance sheet that doesn't have transparency not just wells fargo, i'm saying in general with the sector, we tend to stay away from them. >> especially when we go into the weekend where berkshire hathaway will have their meeting and earnings i realize they've been cutting back, but this has been a key holding. >> it looks like a great value here, just because that fine does not feel like it was very punitive, to tell you the truth, on that side of a bank also there's been a lid on the stock valuation-wise because of the news coming out there. so this is probably the green light for it, as long as the yield curve doesn't stay

inverted so long that's the real issue out there. but this stock in particular is a good move. just a little sentence i picked out in terms of individuals stilt, a quote from inspector general mark baylik - baylik --. just wondering what happens still going forward. no comment in this particular press release what the department of justice is thinking about, potential charges against individuals in the criminal side. the civil side we already heard from last month. the stock has been really at about a 2% or so outperformance today on reports of this news relative to the rest of the sector so clearly being taken as move also just getting a statement from wells fargo itself, saying the conduct our customers

deserve more over the past few years, our program leadership while today's announcement is a significant step, there's still more work to be done in the trust we lost, we're committing to all necessary resources to ensure nothing like this happens again. in terms of the timing, from the regulatory side, clearly does at lea least. similarly. tim sloan did take part in considerations with regulators, so whether that's got anything to do with it, it's happened at the same time the justice

department wants to make sure the individuals are punished, not necessarily the share heeled holds. >> trading higher, we'll leave it there thank you so much for joining us up next today's closer find out if he thinking the ride of commission-free trading has led to a mom and p bs enopuyfrzy on wall street

the deal is the second megamerger less than three months ago interactive brokers stock rallied on the news of both deals as investors bet on more consolidation in the space what did you make of yesterday's deal were you taken by surprise by it?

>> they are both representing the same type of customers, so they will be between the two of them then these two mergers basically cleared the field for interactive brokers. >> when you say everyone knew etrade was looking for a buyer, how actively were they doing that but we have looked at the trade,

and we value wait so who do you think of the price tag >> i think it's a fair price that's where we thought we would be if they had no other barriers in the way. . >> i don't know if you know it, but interactive brokers is over 80% owned by its implodees we have a different aspect, so we cannot take on existential risk, no matter how small the

probabilities for that risk tore realized while a professional manager can take on such risk. >> what do you mean by -- i mean the distinctions on the various plate form capabilities, and the contrast between them are much sharper, where there are much fewer competitors. they two untils, however, have very substantially similar customer base in the sentence

that they both cater to retail investors and registered advisers interactive brokers has always traditionally catered to professional the interactive broker trades maybe 20 times a month, the e-trade trades one time a month >> would you be open to a takeover or merger with the right suitor >> we have spent or litch building this company. we like to look at it, see it grow, become more and more

popular, so it would be a hard decision to sell, but you know, at some price, certainly we would consider it. >> what do you think about possibly price rationalization, given the level of competition you've experienced, you say now three main players, but there's a lot of these other entrant like robin hood, do you see any more price rationalization going forward?

is it was a bit of a mixed bag i wonder what you think the exchange looks like, as we continue to move ahead >> do you know they other players like iex can break in? >> there is a new exchange coming online. so the idea is there's always room 230 new entrants. competition is agreed.

they broad in a new range of stock market participants. >> well, to tell you, frankly, i think robin hood is a gimmick. so they bring in a lot of trader traders. le trade there are, are very small. i don't think that's going to be a substantial competent toffee, but. >> will it survive >> i doubt it, to tell you frankly. it would probably merge with a payment system

you've warned for years what you see as a slide toward socialism, in light of another democratic debate among presidential candidates, where there's a lot of debate around policy and what it would look like come this fall, what are your expectations if we were to see one of these candidates actually win the presidency, what does it mean for financial services and for markets? >> it could be a disaster for the citizens of the sundays, it would also be a disaster for the financial marge. in a socialist country, there is no private enterprise, so there is no ownership of private enterprise.

on the other hand, we can have asset quality and more individual freedom so that's going to be the choice in november. >> thomas peterffy, thank you for covering such a wide range of topics today. have a good weekend. >> thank you very much all right 679 well, coming up, a report that google is 23409 playing ball with one of the government's probes of its business the showdown is on the other side. she's the producer behind several shows. she will join us on peacock content. wa> as a reminder, you can alys catch us live on the go

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welcome back to "closing bell." we have a news alert on google hi, ylan. >> a source tells me that they

have reached a settlement over the use of outside consultings in the investigation google had sued the states for hiring outside experts who had worked for competitors they've been battling this out in court for weeks the consultants can continue to advise the state's investigation, but they must adhere to certainly confidentiality restrictions the settlement is still pending in court i have reached out to texas, which is leading the investigation, have not received a statement yell, but in a statement, google did say to me that they are pleased that the ags have agreed to restrictions, but remains concerned with the irregular way this investigation is proceeds, including unusual arrangements with our advisers guys, this is round one. >> the fact this is only an

agreement in how this proceeds that the investigation still proceeds. >> absolutely. we expect the investigation to take quite a while the state ags had been accusing the company, accusing google of tries to delay -- this problem over who with work on the investigation is already eaten up on several weeks. this is one speed bump that's now behind them. >> ylan, thank so much still ahead. coronavirus fears taking a toll. a top-rated fund manager tells us whether he sees the pullback as a buying opportunity. ♪ ♪ ♪

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the nasdaq the big underperformer today here's a look at some of the biggest laggards advanced micro down 7% nvidia, align technologies, a lot of chip names and high-flying software stocks as well jon foefrt has our cnbc update. >> here's what's happening at this honey, jurors in the weinstein sexual abuse case saying they're deadlocked on the two most serious charges the judge instructing the jurors to keep working towards unanimous decisions on all counts deliberations will continue monday. democratic presidential cant michael bloomberg says company records show three women signed nondisclosure agreements he said he will release them from the ndas if they so desire, this after being blasted by

rival senator elizabeth warren over the issue during the las vegas debate. bernie sanders trying to make sure california independents are able to vote in the state's primary. in california, voters with no preference are more numerous than republicans >> if you are an independent, if you're a no party preference voter, in order to vote in the democratic primary, for me or for any of the other candidates on the ballot, you must request a democratic crossover ballot, or you're not going to participate in the democratic primary. having lived in california, i am familiar with that, and that is the cnbc news update at this hour. back to you.d to see you, have a great weekend. >> you too a significant sell-off to end this week, stocks now down more than 1%, fears of the coronavirus weighs on sentiments our next guest says it's a

nonissue, but he is identifying some areas robert stimson joins us. why aren't you concerned about the coronavirus, especially when we're already seeing delays to the supply chains. with know the coronavirus has been around, and since then the nasdaq was up over 11% since this morning we have softer economic news with the pmis, but the fact that it haddic strong up until today, living with the coronavirus was an case it's not as big as an issue as people fear it definitely has some implications across the u.s. economy, particularly if it were to spread, but technology is a very diversified sector. the supply chain, and the contract moshers are exposed to

china, but the software companies are not. i.t. services are not. the enter net companies are not, so there's still a lot of opportunities within tech. >> what about specific companies like appears that directly warned, do you think that concern is overstated, or are you saying there's plenty of companies without that level of exposure >> when it comes to a company like apple, we can expect lower iphone numbers as a result of supply and manufacturing issues. that's to be expected. i think the market is basically assuming that demand is -- given the uniqueness of the iphone itself, so -- and we'll probably see other companies announce that the manufacturing process has slowed, but again, it's not going to destroy the demand, just push it out

we have yet to see the coronavirus turn into a global pandemic beyond the response that we have seen, so as long as we continue to hear these comments about the precautions being taken and the quarantines and the various steps, i kind of feel like the market understands the issue, and seems to be under control. it's really those issues that the market doesn't understand or pop out of nowhere that tend to be a bigger problem. >> given the outperformance we have seen in megacap stocks and what seems to be an emergen sentiment that these are will be defensive plays, and the weight that that is having on the broader market right now, is that the best place within tech for investors to be investing, or do you seize opportunities in maybe some of these smaller medium-sized names that have been high flying but hit hard.

he given the fact the tech sector was up strongly, the higher valuation will be more of an issue you have some companies that are blue chip names trading at p.e. multiples, and twice as much, and free cash flow yields anywhere from 6:00 to 10%. these are companies that have good outlooks. >> what's your take, robert on the level of valuations that we have across tech, as clearly it's a rich sector relative to the rest of the s&p 500. what's it like relative to the private market tech valuations that we have seen? >> well, the private markets are the valuations that i'm probably

most concerned with. there's been a lot of money flowing into either venture capital or private equity over the last five years. i don't want to call it a bubble, but i feel there's a lot of money facing fewer and fewer opportunities. a lot of the valuations we have been seeing has not been good. the different ipo market, and the amount of money chasson an asset class, those are all indications that you need to be careful. >> robert, thank you very much for joining us today. >> thanks for having me. coming up, the impact being felt here in the u.s., especially if you were planning to attend a conference in the next few weeks, a big business is being disrupted. and the story of how an independent alcohol brand

cornered more than half of the seltzer market business big behind the beer blintz coming up on "closing bell." ( ♪ )

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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.

welcome back, coronavirus fears are leading to a huge decline of revenue in the city of san francisco hi, kate >> reporter: we're seeing a big wave of big tech backing out of events here. citing caution around the virus. one of the largest cybersecurity conference has lost 14 companies club ibm, at&t andverizon. they are a boon for san francisco's economy. according to one estimate, last year brought in nearly half a billion to the city. facebook is cancels its conference even before the outbreak, the business was facing in headwinds, rising costs of visiting san francisco as well as the homeless crisis was part

of the sectors that oracle cited. we have a news alert on the streaming companies. hi, julia. fox and tubi have held talks. fox hash held talks about this streaming service. it could be valued north of $500 million. tubi is similar to pluto tv, acquired by viacom, being used as part of their streaming strategy another streaming headlines breaking this afternoon, "wall street journal" reporting that nbc universal is in talks to acquire vudu from walmart. i've reported in the past that vudu is very much in the market for a sale i have not confirmed this with

either walmart or nbc universal, but interesting to know how this could play to universal as peacock service. so this is -- all speaks to the interest in the streaming by, and particularly in the ad-supported businesses. back to you. >> julia, thank you. up next -- >> i am queen of genovia, and you are princess. >> shut up >> "princess diaries" just warm-up iconic movie that debra martin chase is known for. she joins us nt. do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

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the 2020 box office is off to a strong start, sales through wednesday are higher by 6% compared to the same period in 2019 compared to 2018, sales down almost 19%, with no obvious hits on slate, and increasing number of -- can hollywood still deliver a blockbuster year joining us is debra martin chase, she has an overall deal with universal television, a division of nbc, and "harriet" is nominated for ten naacp awarts thank for joining us. >> thank you, happying to here.

>> this is the best it's been forever, there's so many outlets. for every type of material you may want to pursue, the big event movies, even the smaller specialty movies like "harriet" there's room for them. the box office pressure is different. you can create things that have an audience, but maybe not the widest possible audience, and that still can be successful >> are you in talks to do that

>> i have a number of development deals at the end of the day, it's about finding great content and finding the right home for it. the right home means somebody who appreciates it, will actually make it and now how to market it. >> where do you stand, though, on the debate between small and big korean that i guess has grabbed most coverage. so much so he conclusion recently was for anyone who dreams of making movies, the situation is brutal and inhospitable to art. what's your take on that you like to make cultural thoughtful movies as well as he does did you agree with that level of criticism? >> no, not at all. with your iphone you can make a movie. that can be, you know, put on

youtube or some other platform that's a level of freedom and access and opportunity that we have never had so i actually think -- listen, it's brutal if you're making $150-plus million dollar movie yes, there's a lot of voices, a lot of people that have things to say, how it's made, et cetera, but in terms of getting good content made, this is a good time for it >> i wonder if you think things are changing within holy went in terms of the composition of content creators themselves. >> you have this marvie weinstein case that's unfolding. we had the oscar recently, which were really shined a light against on the debate, the discussion around things like diversity, do you feel like in this golden age where all this money, this capital, this opportunity is coming in to cede

content, there's more opportunity more people of color to, to get some of that funding? >> yes listen, i think things are better for female and people of color in terms of in front of the camera and behind the camera we still have a long way to go there is not a lot of decision makers at the studios, at the networks of color and we need more people in those positions, but my goodness -- one of the problems right now actually is pipe did not line, partnership there were not opportunities over the past few years, within the last decade for writers and actors and directors, female and of color, to hone their talent and to, you know, get experience right now where there is more demand than has been in a very long time, there's actually not enough people ready to take of e

opportunities. so i think what you'll see increasingly over the next few years is an effort both from the industry and from those people like me who have experience and have, you know, can bring people along with them as i have done throughout my entire career, encouraging people to come into the business and get the experience that they need to take advantage of what's going on >> debra, one quick final question given that you made the critically acclaimed movie "harri "harriet" about harriet tubman, i wonder if you had a view on whether her appearance on the dollar bill had been pushed back so much. it had been expected to be this year, and now not likely to be featured until 2028. >> it's a shame. you know, i think eventually she will be on the $20 bill we made harriet for many, many reasons. one was really for people to understand who she was, you

know, what a significant contribution she made to this country, and hopefully in doing so, you know, why she deserves to be on the $20 bill. this was the people given a choice of all the women in history. she came out number one in a poll that, you know, she was the one who should be honored. so hopefully, you know, with a different political climate it will happen. >> thank you so much for joining us, a pleasure talking to you this afternoon. >> thank you so much >> debra martin chase. up next, a story involving corporate espionage, and spin classes. we'll tie all of those three things together for you when we come back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's the most open and secure public cloud for business. it can manage all your apps and data from anywhere.

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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. welcome back, peloton has won a bitter legal fight, and some surprising details have come to light. peloton sued fly wheel for copying the design of their bike and won the case this week as part of the settlement fly wheel agreed to end its at home bike business which meant anyone with a product woke up to find a deactivate you had spin bike in their home and han email from peloton offering to replace it

with a refurbished model vice news found that the court documents had been improperly redacted and were able to read the entire thing flywheel is alleged to have covert operation dubbed project magnum to get the secret intel from peloton and in the most surprising twist for us, disgraced junk bond michael milken is involved he is a major flywheel investor. he met with peloton's ceo to obtain proprietary information in a statement included with the filings, flywheel's cfo commented flywheel admits that fly anywhere bike infringe the peloton patents. >> i mean, my thing on this i find extraordinary is how bad flywheel must have acted to have gotten caught. there's others who have come out who probably have copied the idea you wouldn't expect that to like rest on any really complicated

ip or complicated patents. to have caught itself out this way is pretty amazing. >> it's quite a story. >> small win for peloton. the head of boston bureau told us yesterday that the company was originally targeting with its hard seltzer truly. >> we thought it was going to be kind of, you know, white collar, mostly women, and it turned out to be terribly wrong >> we're going to tell you who is drinking it and which mpiearsengheigst benefit next t it. alexa, start roomba. the lexus es. eagerly prepared for the unexpected. lease the 2020 es 350 for $389 a month for 36 months. experience amazing at your lexus dealer.

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surviving the market's volatility and coronavirus concerns how to position yourself from gains to selloffs to rebounds. "squawk on the street" 9:00 a.m. eastern monday, watch and listen live on the cnbc app all right, welcome back, there is a battle brewing among the big beer makers, but it has nothing to do with your favorite lagger frank holland looks. >> hard selt ser growing, abm bud lite seltzer capturing 8% of the market white claw still number one with 60% of the market. big brewers, coors, and constellation brands debuting new seltzers this year about 50% of seltzer drinkers made the transition from beer, 40% from wine, so women 25 to 45, they are the largest group of consumers according to

jeffries, but seltzer appears to have wide appeal, maybe a bro factor. >> maybe but probably not. but anyway, frank, amazing growth numbers thank you very much for that we are tight on time, we're out of time on "closing bell." "fast money" begins right now. have a great weekend >> live from the nasdaq market site overlooking new york's times square, this is "fast money. i'm courtney reagan in this evening for melissa lee. your traders on the deck tonight, tim seymour, brian kelly and guy adami, we're joined by chris barone, head of technical analysis tonight on fast, a big shiny bright spot in today's sea of red. why gold