global markets in turmoil. coming off the worst day in two years as the dow plunged more than 1,000 points. the question today, can stocks stage a tuesday turn around. february 25, 2020. "worldwide exchange" begins right now. good morning welcome to the show. i'm dominic chu in today for brian sullivan wall street is waking up with a bit of a black eye after

suffering the biggest one-day loss in two years. the dow dropping 3.5%. the worst day since february 8, 2018 the s&p losing 3.4%. the worst day since february 5, 2018 about 5% off the record intraday highs. this morning, futures trying to pull off a bit of a turnaround after a sell off for the dow we could see the dow open up by about 80 points. the s&p up by 9 points and the nasdaq up by 50. it is not much but something we'll see can stick in this session. bouncing back from record points in those moves, 10-year note drifi

dr drifting lower two-year note yields 1.45% gold giving back a chunk of its gains. currently 1,653.40 that's comex index it is a run towards seven-year highs. the market message is stocks tend to bounce back quickly from days like yesterday. there have been 18% drops on monday's s&p 500 and the following day has seen an average gain of 1% we'll see if those green arrows stick. bouncing back with a big picture in asia. remember, tokyo was the focus.

the hang seng up about .25%. team coverage around the world may in sing -- singapore and julianna in london first to you, matt >> asia markets showing resilience starting with south korea, yesterday, we were talking about the 4% decline on the back of the spike of coronavirus cases the market turning around there with the gain of 1.2%. despite that we had south korea reporting more coronavirus faces. china market as well after the reopen after the lunch break, shanghai composite down we managed to close by only 0.6%

we are waiting on the budget to be released. what stimulus measures and goodies will be on that. australia and new zealand down more than 1% corporate earnings season there. a number of corporates continuing to warn on the virus impact it was all about japan today coming back today, we did see a big decline. the worst day since march of last year. we are seeing safe haven flows or looking to park their money into safety around the japanese yen trading at 112 on the currency that doesn't always bode well on equities as well >> live in singapore on the

latest of asian trade. julianna tatelbaum is in london. i remember coming to work this morning in the new york time zone, the stoxx 600 was actually higher but we've seen some slowing momentum >> exactly this morning, european markets have tried to stage a turnaround the stoxx 600, the main benchmark is now trading lower about 0.3% put this into context with the losses we saw yesterday. the pace of selling has slowed relative to yesterday. investors not quite ready to begin putting their money back into stocks here that rebound has fallen through and now they are trading lower yesterday, we saw basic resources.

auto, travel and leisure trading lower. and those airlines getting hit very, very hard. this morning, stabilization coming through you can see the worst performing sectors of banks much more muted losses than we saw yesterday. at the top of the board, we saw media up 4.4% and basic resources. china trading in the green today. yes, the rebound was short lived but the losses coming through now, not quite as bad as yesterday. investors pausing a little bit in europe. >> julianna tatelbaum with the latest from london all of this linking to the growing spread of the coronavirus around the world nearly 80,000 people in 37 countries have now been infected the global death toll is at least 2,600 people

frank holland has the latest >> the cdc is raising threat level in south korea and warning americans not to travel there. president trump has asked congress for $2.5 billion to fight the spread of the coronavirus in the u.s the president tweeting yesterday, the coronavirus is very much under control in the usa. we are in contact with everyone in all relevant countries. working hard and smart stock market is starting to look very good to me. watching around the spread to impact wall street first, united, withdrawing their full year guidance roughly 40% of united revenues are from international flights number two, master card. saying net revenue will take a hit of 2% to 3% of the forecast if the outbreak continues through the current quarter.

and moderna surging in the pre-market it has become the first market to release a potential coronavirus vaccine. it sent the viles to now be tested on humans stock futures well off the highs. the dow opening up about 80 points here. mark, i've got to ask maybe this first. are you playing offense or defense? >> we are staying in the neutral zone not going either way that heavy right now. there is too much uncertainty. i think investors are changing the fear question from the greed posture we have seen last year, even to january. those people playing ping pong are the ones that will lose out

here we don't know the duration of this or how wide spread it is. to wake up every day and put more money on the table is to say it will be black today and red tomorrow is not solid strategy looking at the economy and understanding that this virus will run its course and impact its short run. think longer term and stay out of the short term donald trump tweeted yesterday, the coronavirus is very much under control in the u.s we are in contact with everyone in relevant countries. the cdc working hard and smart stock market starting to look very good to me. we want to focus on that last

linenow. is the stock market now looking good to you? is. >> it is a lot more complex. reflecting a total break down. that is way too much i have business owners whose businesses are being disruptive on this. until we know how pervasive this is, you don't dive in with both feet i don't think it is surprising travel is getting crushed right

now. i know cruise industry has come back after an illness but we are in a social media world. to see these pictures every day of cruise lines stranded off the coast. passengers turning into patients, drying their laundry on deck. that is a visual these companies will have to deal with if they are going to get their industry back, it will be deeply discounted for several years >> what worries you the most in the next couple of months as we get out of this seasonal flu here in the united states and around the world and this thought that maybe the coronavirus starts to abate by maybe march, april, may this time around? >> the expectation is that it will behave like the flu and calm down and we can resume but i think starting this engine back up will take some is time

the drop will be deeper than forecasted i don't think the numbers coming out of china have been very reliable if we have global gdp depressed greater than we think. it will suppress numbers for the year these low interest rates reflect that the oil markets reflect that i think it will be deeper, we will recover but it is not going to turn on a dime. >> thank you for those market thoughts the largest virus hot spot outside of asia is in italy for nearly a dozen towns in northern italy are locked down with more than 200 infected so far joining me from italy, we know the area here accounts for nearly a third gdp in italy and

it is on lockdown. how worried should people be about the situation in northern italy? >> i think the most important point is that the italian economy is already particularly weak the last gdp numbers in q4 were very poor. these regions account for over half of italian exports and a third of gdp having this at the time of fragility is worrying. >> what is the government feeling right now? >> we know there has been a coalition in place involving folks on the left and right to try and form a government here is there any stress because of this issue and perceived effect on the economy >> there is two levels

there is an italian level and the relation with the eu there has been criticism of the prime minister, there has been disagreements between him and the regional government and how they are handling crises for the moment, they have been overshadowed by the events on the ground maybe giving italy a bit more wrigle room. >> is there a sense among people in italy right now in a bid to

stock up on goods. >> tell fish yans are telling people not to do this. i'm not continuing with signs as normal we are seeing alarming pictures of shelves completely empty. at the same time, italy is still functioning as normal. the main effect is the secondary effects of tourism are people going to hold off on visiting these regions that is unclear. because the economy is so weak, this could deal some serious damage >> thank you for the update on the situation. we appreciate it >> this morning's corporate

stories including amazon unveiling the first cashierless grocery store and markets in to turmoil. the worst performer yesterday was energy the worst day since august 2015. a very busy hour ahead as "worldwide exchange" returns after this since when can we do that? since we started working with bdo. (announcer) people who know, know bdo.

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welcome back if you are just waking up, you can see here futures indicated to open by the dow up 50 points and the s&p up 6 and nasdaq up 38 if these hold talking about the headlines. >> expedia plans to cut about 3,000 jobs or 12% of its workforce. an email said, quote, we had been pursuing growth in an unhealthy and undisciplined way. early reports, expedia up to cost savings

japan's ana has ordered a dozen 787 dreamliner jets. the order is worth $2 billion at list prices. operating 71 jets with 12 more still to be delivered. amazon bringing cashierless store. set to open in seattle's capitol hill neighborhood today. smarl space than convenience stores and is targeting customers in residential areas no cashiers or checkout lines. >> thank you still on deck, stocks to watch but first, check out some of the semiconductor and bank etfs within 1% of correction levels continued coverage of global market turmoil coming up after this >> announcer: today's big

number, 26%. that's how much the s&p oil and gas etf, the xop, has tumbled so far this year. yesterday was the worst day for the xop since august of last year isk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

welcome back to "worldwide exchange." we are watching treasury notes

10-year yield 1.35%. a check of stocks on the move today. hue let pack ard is pledging to buy back $15 billion to prevent the hostile take overbid from xerox saying the bid is quote, fundamentally flawed companying as the company warns of first quarter earnings and raised their guidance for the full year up pre-market. shake shack posting a midquarter loss as customer traffic dropped 5% seeing lower sales growth and facing potentially significant head winds in asia off the coronavirus. and palo alto networks also

cutting earnings for the full year and those shares off 16% pre-market >> after yesterday's more than 1,000-drop for the dow how investors should play this environment. first, check out the airlines. the major airlines have been hit hard the airline index dropped more than 6%. the worst daily performance in four years continuing coverage of global markets in turmoil when we come right back memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

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s. coming off the worst day for stocks the dow would come off the worst day. european stocks losing momentum. nasdaq up by about4 tse 2ifhe gains hold keep it here, "worldwide exchange" is back right after this

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find out how an annuity can give you lifetime income at protectedincome.org global markets in turmoil. amid mounsi amid mounting fears of the coronavirus. stocks are fighting to make a slie slight turn around this morning and erase some losses. we have global team coverage on the move the second half of "worldwide exchange" starts right now welcome back to the show, i'm dominic chu.

wall street looking to try to stage a come back. the dow and s&p coming off its biggest one-day lost off record intraday high levels half way through the 5:00 a.m. eastern hour, futures are trying to pull off a bit of a turnaround you can see hear the dow would open by about 15 points. that's unimpressive. futures open up. we've been steadily lifting lower over the course of the morning and accelerating a bit over the last hour or so the market message is that stocks tend to bounce back quickly. over the past 11 years, there have been more than 18 drops on

a 2% on monday and the following day has seen an average gain turning attention to two charts this morning first is the emerging markets etf. ticker eem we have fallen just about 10% from the highs we saw earlier this year, so emerging markets the focus. watch the i shares that tracks the transportation index over the last year, just about flat you can see here down about maybe 7% over the course of the past couple of weeks transportation stocks, airlines a key indicator over those fears. checking the early trade in europe losses there extended, you can see there, the german dax, cac

in france. with he were positive in europe when we came into the show at the 5:00 a.m. eastern hour growing amounts of uncertain ten on the sprad of the virus. "worldwide exchange" team coverage includes matt taylor in singapore, eunice yoon in beijing. matt, we'll start with you and the asia trade >> i'm going to kick it off for you with the japanese markets this time around remember, yesterday, japan was out of play for a public holiday. the first time japanese markets have had to react posting the worst day of loss since last year the nikkei off by about 3% or 4% similar sized perrage for the

topix. a lot to do with the strength in the japanese yen remember, we hadn't been seeing the safe haven flows or people wanting to park their money. it was only a couple of days ago at the 112 handle. we did see some resilience coming through we are seeing the south korean market on the decline of the back of the coronavirus. more cases there today but the market rebounding. china markets looking to split right now. we are waiting for the budget out of hong kong and what will authorities there be saying and prop up in the wake? shanghai composite was down about 2%

but managing to claw back some declines the market only down about 0.6 of 1%. >> going to eunice yoon, the pace of new cases does appear to be slowing down some what. >> yeah, that's right. the world health organization has said the epidemic appears to have peeked here another province todo downgrade the response several ministries put outnumbers the resumption of work at small and medium sized companies

specifically is at 30% the transport ministry also weighed in with some what disturbing numbers when you look at how they are categorizing work for railways at the airports on the highways they said construction and activity at various projects is subpar these projects rely on migrant workers who haven't been allowed to travel or have been reluctant to travel. the government also said it is going to continue to ban flights in and out of the province it is also another indicator is that what happens at the schools and how long the schools will

stay closed. we have another development today saying that they are going to keep their schools closed for the for see nl future. students will resume studies on line as of march 2 hong kong has gone further saying they will keep their schools closed until after easter holidays on april 20. >> live with the latest details. let's send it now to dan murphy at opec. this is a big deal for those oil producing countries. >> that's right. prices stabilizing but not after doing the texas tumble after the coronavirus continues to spread

beyond china reaction here as they come into their meeting next week, we spoke with the energy minister to get his reaction to that price decline from last night. the impact it is having on the oil market opec isn't out of ideas just yet when it comes to managing and the economy as a result of this virus. listen in. >> we do communicate with each other. we use every opportunity to talk with each other. the uae because he's visiting from this conference and opec was here because he's at the english

conference we had a good chat we did not run out of ideas. we haven't lost our funds. >> opec is meeting next week the energy minister didn't offer any suggestions. it is important to point out just last week, russia's minister has not decided how to respond. that meansnext week's meeting is going to be a live one. we are monitoring all those developments the suggestion that opec could come with an extra 600,000 barrels. back to you. >> the latest on the response to the coronavirus. another check on futures where we have seen deterioration

we were green. the dow would open up by 10 points at this stage joining me now, chief strategist seema, you are seeing the european trade play out. u.s. futures seem to be deteriorating. >> if you see a sharp drop like yesterday, it would tend to have a rebound yesterday. the fact that this doesn't look like it is coming through suggest that investors were reluctant to buy the dip >> why are they reluctant to buy the dip? over the past years, it has been a winning strategy these have been v-shaped every time there is a pull back.

why is this time different >> i think it has moved beyond comparisons to sars. we are in a condition where china is much higher impact. on top of that, news over the weekend was very concerning with regard to the rest of the world. many markets had peeked with record highs, it does seem the peek of the virus had hit. suggesting the situation may be worsening and may be downgraded some what. >> what you didn't see is there are three stages you've laid out with regard to how you see this going. take us through those stages and why we are not seeing a bigger bounce this morning?

>> absolutely. the first stage is where we would expect a few weeks ago you are largely contained with a rebound in march the second stage is creeping in over the next few weeks and take longer to get started. the news over the weekend when you take to stage three where a real fear over where china was the rest of december over the new market these fears are exaggerated. this is really why you saw a very sharp drop yesterday. >> is this a scenario right now given the three stages now and headed towards those top three in the possible scenario would you be looking to put protection none and how would

you do that? >> given that there is so much uncertainty, potentially the best thing to do is start increasing the u.s. dollar, treasuries and pressure metals. high quality, fixed income assets those best places require asset protection >> that doesn't bother you at all given 30-year bonds. near record lows, it seems so expensive, you are paying up for that insurance >> absolutely. that goes without question that is extremely expensive. look, the market is vulnerable to any news flow waiting to see how this pans

out. what we are expecting to see is that those activities could continue to push down those treasury yields. those could be the safest place to be at this stage. >> thank you very much we always appreciate your thoughts >> coming up, the coronavirus outbreak continuing to hammer retailers. look at shares of apple, the tech giant one of the biggest drags. the company has reopened more than half of the stores that were temporarily closed. "worldwide exchange" is back in just a moment. at today's best western, stay two nights and get a free night for your next stay.

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currently on pace for its best month since last august. frank holland is back for more on the coronavirus >> the u.s. government bids $2.5 billion to fight the virus. house speaker said that request was inadequate and the house would launch its own funding package. the cdc alerts against travel to south korea. saying americans should avoid travel there the number of infections there now stands at least 977. shares of moderna surge, the boston based company becoming the first to release a

coronavirus vaccine now released to test on humans. luxury stocks getting hit hardest. 29 of its 42 retail stores reopened with limited hours. is this as bad for luxury consumers and companies as we fear >> in the short term, it will have a huge impact as a traveler. up to 40% of luxury goods are bought by the chinese globally they are not shopping at home and not able to travel

when they travel, they spend more money abroad than at home you think about the picture of the chinese consumer being locked out at this point, it will have an impact from burberry, montclair, lvmh. >> we are showing now lvmh shares they've already ls 7%. many of these appear as though there on discount. would you be stepping in to buy some of these names now? >> absolutely. two of our top picks we kept into 2020, montclair and lvmh. if you say, let's assume in six months, there is a solution here, these are the brands you

own for the long term. there will be a bit of volatility certain brands you would own lvmh, montclair, their product and customer are the two to own. >> we've been talking about supply chain impacts, the market and asia there is a dow component where shares are flat about now. are these scenarios ones that would be also perhaps on a shopping list if these pull backs continue >> absolutely. if you look at nike, about 18% of their sales come out of china. for adidas, that is slightly higher longer term a slight impact. when you think about retailers

in general talking about that they are chasing orders versus in advance now they'll be left short here this is an opportunity to step up and own the best brands out there. nike, v, montclair and domestically, if markets brought down for the target. >> thank you very much >> good to see you, dom. >> we continue to keep a watch on the future. the dow now would open up by 12 points the s&p just about flat, nasdaq up about seven points. check out the biggest dow losers yesterday. united health at the top of that list down nearly 8%

apple shares near 5% you can always watch or listen life on the go or on the cnbc app. "worldwide exchange" would return after this.

welcome back time for the executive recap jp morgan chase reportedly announcing new conditions aimed to combat climate change the plan apparently approves restrictions on financing coal mining and arctic drilling the u.s. is reportedly working on ways to curb sales to huawei. several agencies yesterday,

talks were hold to block the sale of jet engains for china's new plane despite president trump's comments in support of selling those products to china. >> you can see here losing some steam after yesterday's big selloff. shedding market value yesterday according to s&p dow jones, $900 billion came from the s&p alone. i'm joined by chief investment officer, also cnbc contributor brian, are you buying the dip? >> when you look at the market, it is not a bad point to get in. there is a lot of negativity it is going to be a tough play over the next month or two when you look at the opportunity

here with the s&p, you mentioned the steep fall there that is now 60 basis points higher than the 10-year yield. get your money back at 1.3%. or invest in the market with positive earnings. we may have slowed growth. it is starting to look a little attractive on the levels here. are you looking at the index basis or certain stocks? >> that's a great question when you look at the leaders here, there has been a handful of names they've been big leaders you can play those i like the semiconductor sector here the uptrend, it is still in tact we break the low-end range here, i'll be looking at the 132

level. then maybe there is negativity maybe this is an opportunity to dip in and bounce off the correction levels. often times we talk about the oil markets and how you view them as well energy has been hard hit is this a buy now for energy >> it is a different story that will play on global growth. we've been talking about the coronavirus. clearly, there is probably going to be a slow down. when you look at negative yields in europe, there is a slow down they may be talking about. that will play on the energy market and why you you are seeing a decline it seems like any rally we get on the oil market is that there are selling pressures that occur that are able to sell the

futures, pump out oil out of texas, oklahoma out of shale gas. i'd stay away from energy. >> thank you for those market thoughts that does it for "worldwide exchange" this morning futures now indicating the dow will open up by around 40 or so points "squawk box" picks up that market coverage starting now >> good morning, global markets in turmoil the dow plunged more than 1,000 points we've been up and down and around the flat line this morning. >> we'll run you through some of the big moves and bring you earnings from home depot due out any minute >> we'll take you around the world with coronavirus updates

it is tuesday, february 25, 2020 "squawk box" begins right now. good morning welcome to "squawk box" on cnbc. we are live from the marketsite on times square. our guest host with us from douglas c. lane and associates wall street waking up with a black eye this morning after the biggest one-day loss in two years. the dow dropping more than 1,000 points the s&p dropping its worse since february 5, 2018 about 5% off record intraday highs. you are seeing we are no getting much of a bounce back after th