if china can handle it and control it, then that could give you, you know, take solace that maybe he would could handle it wherever it breaks out. and china 1 point however many billion people, ten of billions is still a small amount and we're nowhere near that. we're less than 100,000. let's stay positive. >> fingers crossed today. make sure you join us tomorrow. "squawk on the street" begins right now. ♪ good tuesday morning, welcome to "squawk on the street." i'm here with jim and david at the new york stock exchange. looking for the bounce after the worst day for the s&p in more than two years. lot of coronavirus warnings this time from master card, united, phillips, home depot is a bright spot. europe started green, currently red. ten-year 137.

home prices up 3.8 year on year. roadmap begins with a turnaround tuesday. stocks set to bounceback as markets attempt to recover from the worst drop since 2018. >> the drug maker shipping the first batch of this coronavirus vaccine as the world health organization warns the outbreak has the potential to become a pandemic. >> and the top performer sector just last week losing more than 200 billion in market value yesterday and set to fall again at the open today. as stocks come off, as we said, the worst day in the couple years, the coronavirus numbers continue to climb both in and outside china. total confirmed cases exceed 80,000. deaths surpassing 2,700, heading into the session the downd at s and the s&p are in negative territory. we have croatia, bahrain added some. the iranian deputy health minister tested positive.

you can't read all the headlines they're coming too quickly. >> and i think iran and italy are the two that i think people are focused on. but all these others, they always -- in clusters. it's so easy to get. but, remember, it's not easy to die from. you have to have typically diabetes or some function of respiratory weakness. perhaps it's the air in wuhan that's -- i'm not being a pollyanna, but i just think that you've got to put that in. >> but there's so much we don't know about it, including the death rate itself. >> we don't because the chinese have not let the doctor in to find out what's going on. >> what the death rate really is. those who were in the hospital, the death rate's fairly high, very high. >> right. >> the elderly especially. >> yes, the elderly is high. you stated it's 2%. but if you're part of the 2%, you're 100%.

>> i guess you've been talking to as many people as you can. i talk to people hor talking to experts and occasionally i speak to someone as well, and there does seem to be the sense that it's just a matter of time. >> it got away. >> till it gets everywhere and it's not about containment as much as mitigation. >> but it's important to remember that dr. fauchi, he kept saying from the beginning we're not going to be able to contain it, we want to slow it. i don't know why everyone is saying why can't it be contained? it's not in our country. the super bowl said you can't contain it. >> right. >> he was very abject. >> you needed to cut off travel all over the world immediately. >> right. >> and somebody made the point, humanity has to win every single time, the virus only has to win once. >> and the game changer here is you can have travel

restrictions, but the asymptomatic nature of the virus means people will get through not presenting symptoms. >> of course. >> that's the real -- that's the trouble in part here. >> i went to spain for fashion week last year. was where you could just go and tell you that the majority of people were asians, china, and why were they there? if you ask the major designers, which i did, it was the copy, because that's reasonable. but it was heavily chinese. and i think it happened again t >> that's why it's getting -- >> right. it's just a tremendous number. i remember going and i was one of the few americans. and i said, gees, this is, wow, fashion week is incredible, it attracts the world. and now let's say you go to the airport, you just came back from the fashion show, i get in, i

don't have -- i spend one day. i get into jfk. i ship down here with you guys and maybe you fist bump me, maybe you do anything. but in you shake my hand, well, sorry. would you touch your face -- >> it's a good point and we've kind of kidded about it, but in all seriousness, you can't kid about it. if we were to stop shaking hands in this country we'd have a much better chance of mitigation. it sounds silly, it's not. >> it's an actual thing. >> if we came up with people just being -- >> the doctor did the huge amount of -- he's the ceo of barrett. a huge amount of gold business in the middle of the ebola, in the middle of the ebola epidemic. and no one shook hands and he didn't get it. now you can say, well, that's not a disease you can get. give me a break. that's deadly. but you have to adopt new ways. you don't touch your face, you

don't shake hands. you wash your hands constantly. >> meanwhile, the fear of the virus is going to have potentially what are going to be the economic knock on effect of this paralyzing various parts of the world or anything else >> look, you want to be in a big gathering, do you? >> because it's the fear already that is obviously what the markets are reacting to in terms of what it's going to mean. people not showing up. gathering's not occurring. >> restaurants, travel, airplanes, hotels. i mean, all the things -- your carry the wipes everywhere but you recognize that your helpless. david asked me before if you went on an airplane would you go with the very sophisticated 3m mask okay, we've been trying to get one for four weeks, all right. four week. my wife is very diligent. can't get it. i know 3m's trying. >> they're making as much as they can and they have a lot of given customers to satisfy including an enormous demand from asia well beyond what

they've seen. typical customers who they provide are using them. >> are we paranoid no, we're going to go away. actually we're going cancel our go away if we can't get this. >> an airline told us look for more domestic travel as international trips get called off. forget going to europe for spring break. we're going to get to all the corporate reaction, but the president did address the virus at a press conference in india. take a listen. >> people are getting better. they're all getting better. we brought in some americans from a ship because it was really the right thing to do and they're in quarantine. and we think they'll be in very good shape develop, very soon. i think that whole situation will start working out. a lot of talent, a lot of brainpower is being put behind it. $2.5 billion we're putting in. i see that chuck schumer criticized it, he thought it

should be more. if i gave more he'd say it should be less. >> that comes on the heels of larry kudlow last night telling "the washington post" americans should consider buying this -- referring to the market decline. >> i think it means if you have no stock, a lot of cash, possible. but if most people have -- no s&p exposure, i don't think it's bad. i will tell you this. i think the president's right about -- it's real they have their own -- a couple times on "mad money" and how does vaccines better than anyone they used awv they use amazon web services they used bases to figure out the blueprint of the dna and what's amazing and what will happen with mow derna. if they give it to china, then you're going to find out what china would do, they give you the vaccine and they try continue to ininfect you. we're a little bit more --

>> sometimes the immune response is what kills you. have they come up with a vaccine for sars >> uh. >> no. >> no. but they came up with a vaccine for ebola. >> yes. >> i'm just saying it's typical -- >> the president said they're close on an ebola virus today. >> well, look, we don't know what they're going to do. let's just point out if this is not the way vaccines are made. they are -- they are moving like this. i mean, i'm developing -- it's been 7's seven months typed with the ird. then you get through with the review board. then you get through the review board and a mini trial. then you do 1.0. >> if it doesn't kill people. >> we do not -- the chinese are not doing that. and the president's right. >> here's fauchi in the journal today, going into a phase one within three months of getting the sequence is unquestionably the world indoor record nothing has ever gone that fast. >> it's astonishing. i have thought that i had the

best darn medicine in the world. and it's working, i created it with my doctor, dr. newman. we think it works. and you know what? you may see it on the market in a couple of years. unbelievable. but this thing, i mean, maybe they give it to chinese prisoners. why not? i mean, i don't mean to imply that they -- >> if in fact it's better and safe, that would be quite a thing. >> but this is fauchi's -- this is unpressented didcedented. do you know how hard this it is in this country? after all the things we decided to dot--

>> going to cut valuated fraxs 3% to 1% and way of it for businesses in the epicenter of hubei province. this comes after authorities said that the rate of resumption of work for smes is only 30% the authorities have also said that a lot of projects in the

transportation industry, especially railways, highways, airports, all of them have stalled. and a lot of those rely on migrant workers who are either reluctant to travel or restricted to travel. now, this also comes as many schools have extended their closures. a big manufacturing hub has said that it is going to stay shut or it's campuses are going to stay shut until further notice while students resume their studies online through march 2nd. hong kong schools are also going to stay closed until april 20th. you see this conflict in the priorities of the policymakers here. on the one hand they want to support growth, get people back into their offices. on the other hand, they're worried about the spread of the virus and a second wave of cases. in fact, in our office, in the elevator of our building there's a new notice up that said that only four people are allowed to be in the elevator at the same

time. so in other words, we can work, we just can't really get too close to each other in the elevator. guys. >> unbelievable, eunice. we'll be checking in with you obviously as late as you can stay up. it's evening right now in beijing. >> i can just say she's incredible. most people would not want to be there. most people would not want to do what she's doing. i'm proud that i work with her. >> we're grateful for you, un niec uniece. we go to apple, we have the greater threat to longer lanches. >> we do know that we are up to 2012 was the last time there was biggest institutional support for this now. and 2012 was a watershed where you had to sell if you were even -- well, i say trade, but no one neknew where the bottom

was. if you bail from f.a.n.g. right here aggressively, i don't know when you're going to get back in. some of these companies don't have anything to do with china and apple, they do have a big launch and as eunice was saying, part of china is coming back. might be the part that they're doing. they have six, seven factories in wuhan that supply them. the other ones are knocked down. it may not be so bad. the shopping in chiba hna even online has been deterred. we're going to have a trial at the university of nebraska medical center for a drug. >> which is not a cure, but is a -- right, an antiviral that would -- it's helpful with the fluids with the flu. >> these things are all happening at lightning speed. i'm so used to the other way, which is that we got to do four years of study, it's not happening. it's good.

>> we'll get cramer's mad dash, got to get to home depot, t cy's, mastercard, expedia, a loof news. take a look. futures. "squawk on the street" is back in a moment.

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what carl said, of course, we've got a lot of corporate news to get to and let's start off with the mad dash now. palo alto shares are down sharply. >> yes. they've done a good job. china gets this company to where it has clout, where also it of course just has on prem, so to speak. and the issue is there are some product glitches. the conference say little hercy jerky. i felt from guidance cut that there really is no reason to buy it right to here. there are others that are better in this space, including proof point. the space has become very spotty. so what i would tell you is that there isn't any stability to this given the fact that once you cut guidance in these high

multiple stocks, they don't bottom the first day. even though i think they've done a very good job, they do not have the right product. i know he may disagree with me. but it's not the pro right pro duct or the right sales force, but it's vedisappointing. >> but they're not executing as well as they could be it's more a function of the marketplace himself. >> i think he's hard on his team. i don't think they're executing well. i will say going forward with core rine you're goi corona, you're not closing over dinner and getting together. i think people are underestimating how much it's going to hurt tech. >> in general? >> enterprise tech. >> you're talking now back to kron corona. >> you're not going to leave corona until this thing is -- it's too darn easy to catch. >> okay. we do have a lot of other

corporate news. home depot earnings, hp earnings, macy's earnings, we'll look at all of those stocks when we come back. we've got opening bell just ten minutes away. stay with us on squawk on street. tstreet. hestreet. the street. so what are you working on? >>i'm searching for info on options trading, and look, it feels like i'm just wasting time. wasted time is wasted opportunity. >>exactly. that's why td ameritrade designed a first-of-its-kind, personalized education center. see, you just >>oh, this is easy. yeah, and that's >>oh, just what i need.

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at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved. since march of twine, there have been 182% draps on a monday. the next day the average gain is about 1%. we'll see if futures are going toon ctinue that pattern in the opening bell in a few minutes. don't go away. you can watch us live on the go on the cnbc app.

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open the street live from the financial capital of the world. opening bell until 4:30. obviously the market playing close attention to all the corporate reaction to the coronavirus. we've heard from mastercard on mad last night. united. j bill is out now saying they're running capacity in the range of 65 to 70. but nobody can really put hard numbers on the quarter at this point. >> no. i just think -- i mean, everything i go through, they have to say well, here's what -- let's just take macy's and mastercard. macy's says we have to talk about it. we are worried about corona. they're retiring it through a fabulous run he took a company from 26 billion to 300 billion plus. he's retiring. they had those cut numbers. i think he did it at the right time, let the next fellow come in with the number cut, not that bad, but the stock does slow 2%, 3%. the fact that the stock is not down worse, the fact that the business is so great. mr. miebach has been there for a

long time. should be a smooth transition. >> he ain't going anywhere. >> and then he's exec chair for a while. >> people that want to sell that stock, go ahead. i think it's dumb. >> these are just money making machines. >> oh, what a -- >> look at ten years on both of them. the only question i have -- it's not hard to run these businesses. i don't know they just need to print money. >> that's not fair. >> well, he's had three ceos and it never lets up >> they've had great managers. but it's unbelievable. if you look at the long term. look at that chart since he came in. this was a medium-sized company and now it's one of the top companies in the world. >> can we do a comparison with visa i'd like to see which one was -- we're going to do that too >> you want to do that >> yeah, i want to. >> all right. there you go. all right. >> mr. know it all. >> yeah, mr. know it all, look at that. >> you could have just bought both of those in a nesting he. >> that's true. >> 440 -- you insisted on being

in the s&p. he will not be missed. >> it's going to be something to watch. meanwhile, big tech stocks lost more than 200 billion in market cap yesterday. all five tech stocks saw their stocks tumble at least 4%. apple and microsoft saw 60 billion. amazon alphabet showing 40 billion. facebook the least valuable member of the group surrendered more than 20 poo5. every dow stock is down for the past week and the ones down the most in the index, apple, intel, microsoft. >> yeah. >> they have been the leaders. >> right. intel, i think, is starting a price war, according to the reports against amz. one of the reasons why amd has been hit hard. what are you going to do how can -- people have to sell apple have a very big gain. i think it's going to be a mistake, but they've got to do it now. microsoft has bane horse.

been a horse. you want to buy a stock, get started, do some microsoft. put a quarter position on. no reason to buy anything that's up, because that's just a sucker's game. that's taking people out of what it was last night. >> we've got a couple of coronavirus related down grades today. micron to reduce. >> i hated that but i get it. >> and then nvidia reduced citing supply chain. >> i read that, i thought it was lame back up that was one -- they should have just said it's up a lot. that would have been fine. i wouldn't have minded. but nvidia is doing a lot of things if you think about -- i'm going to use some years. if you think about 20, 21, they have a lot going on. but i know that's a white -- for a lot of people, 20/21, right? >> it's more than a year away for the most part.

>> right. [ applause ] >> let's get the opening bell here. s&p 500 at the realtime exchange. c&o financial group celebrating vester day at the nasdaq. major and taut automotive access control dr. products. [ bell ringing ]. >> speaking of investor days, jp morgan -- after we got some of the headlines last night regarding no more financing of the -- 200 billion in green financing. limited coal financing. no fresh money going into coal. >> i know. it's happening so fast. you think it stops coal? you think that's the only carbon -- look at the canadians. "the new york times" said that the canadians, they just -- the biggest project in nine years. >> alberta, yeah they stopped moving forward.

it's all over but the shouting >> it's a good question. we've seen the cost of capital for those who get stuff out of the ground is going to continue to go up, right? >> right. and the seven-year. >> but eventually that's going to result in gasoline being more expensive. >> why >> electricity being more expensive. >> the seven-year curve for oil is the same price as now. it ain't going anywhere. >> does that every change? if the cost goes up, up, up and up because they can't get access -- >> now, to send the market out that far, but that's the tale of the tape. i want to go back to microsoft, it's up 4. no, you don't buy microsoft up 4. >> your point on energy, jim, we did see spreads on high yield energy widen yesterday. you've got to go back to '16. may of 2016. >> well, you've got to worry about some of these natural gas

companies, natural gas is well through the cost of what it cost to produce or even to make. you lose money on every bit of natural gas and they can't flare like they'd like to. this flaring is bad for the environment. >> it have although the administration is allowing it, but the companies are trying not to because, it, of course, impacts their overall carbon footprint and things of that nature. >> right. the companies are not following the president because the companies want shareholders. and the companies are recognizing that maybe the shareholder base that they thought they could have is not interested in these stocks anymore. we've only had a couple dig divestitures. we had georgetown, but they're going to roll. i mean, having been involved with divestiture at harvard, it took eight years but they all rolled. >> who's going to finance the companies? i mean -- >> exxon, chevron, they're not going to be able -- >> they have money. look at the balance sheets of

some of these companies. if oil doesn't go up, they can continue to just run off. but they don't have a lot of growth. they're just not good. >> they're already not spending that much on big projects. >> well, people thought if they cooled that and they just started a simmer -- >> right. but even the big guys are not signing as much. >> dallas fed says capex in their space is down 10 to 20. >> they still have good federal reserve numbers in that area. let's take a case, there's going to be force major on those contracts. they want to go to asia, lng. >> they're going to declare -- >> i think so. >> the virus is going to be -- what -- really >> who needs it? they don't need it. they're -- >> i haven't seen this. >> well, there's going to be -- look, l&g is right now still the greatest success story. i think it's a matter of time

before these companies start -- look, we have the godfather here, he's said to me don't worry there's always going to be more customers. that could be for a while. but the world is changing rather rapidly. and i don't think people realize how bad the slowdown is. >> well, cheap gasoline anyway is good for the consumer and depot's comps were ahead. >> good point. >> you've got a 10% div hike here. >> i thought macy's was fine. you have a corona problem because that big store in new york. look, i think macy's, they've downgraded their debt and they've done a good job of trying to clean up the balance sheet. if they do the air rights for the -- square, it's good. but nobody wants the classic department store they don't want to get in the home depot because that has to do with construction and that's interest rates they don't want home depot.

>> understood. >> it's an interesting play. >> right. >> that's what i heard you say. then you're going to talk about gardening season coming up. >> it is that. >> christmas is gardening season. >> depot did say appliance caoms up double digits. if you take ute sears and jcp. >> i'm surprised aboby that. i didn't think was going to be this good. could i say that the ceo and what they do to train their people -- this is amazing, they have a tremendous problem, opiates, and they're trying to solve it. but it's not deniable. they will bring it up to you they will tell you the shrinkage is a real problem. i didn't think it was. they brought it to my attention. so they've done quite well. >> expedia cutting 12% of its workforce. >> exploded. >> 3,000 jobs. >> yeah. >> the other disappointment overnight, you mentioned palo alto, jim, shake shack revenue costs down 360.

qsr is turning into a real tough business. >> and a lot of this is they talked about -- they dance around the concept the scrub up relationship they keep saying it's causing volatility. volatility is code word for bad. yeah, the qsr is in trouble there right now. mcdonald's is hanging in there. >> wendy's launches breakfast next week. >> i think it's going to be good. i had the chicken sandwich last week and popeye's. >> how was it? >> i had a couple bites. >> so you're not raving about it >> no, i'm -- i'm jimmy chill, i'm trying to get thin. but wendy's is going on. wendy's, by the way, is doing excellent. just want to give you a little flavor there. wendy's is doing very well. >> right. >> that's the one, and i think breakfast is going to be a success for that. but, yeah, the group -- i think shake shack is down even more. that was a disappointing conference call. i was really kind of shaken by this whole -- you know, this delivery thing, it's like rich alison from domino's.

he's triumphed over this -- but they were shorted. what are you thinking david? >> ei'm thinking big pharma, all down 10%, 11% this year. a lot of people feel likemerck is too much after of a one-trick pony they didn't like the reorg. >> pfizer doesn't really have anything -- >> they have important announcements, you're right. that was an important one. >> they're not doing it. they don't have it. they're not executing well versus -- which has got fabulous migraine drug. i know this because -- >> they're certainly one of the few of the big ones that's up. >> they're doing great diabetes work and great work with migraine. they're a good company. really good. >> la mars is flat for the year. >> that acquisition was -- i don't know why he's picking on bristol-myers. >> i'm not picking on it, i'm saying it's flat for the year. >> take a look at that.

we have ab instant pill for migraine. i want to point people out because if you have a migraine you can pop that in two hours you can see straight versus what we all suffer from. i was trying to -- >> you're a good spokesman for migraine. >> i'm trying to spread the word because there's a lot of people hurt and there's drugs for the now and they don't go. and the doctors don't know about them, which is very upsetting to me. boeing did get its first commercial order for the year. ama will buy dream liners and that's boeing in the green. >> you see the ge engine instead of rolls royce. >> that's been a setback for rolls. >> people should read larry's annual report yesterday. >> i know. you know where i'm going on ge today? everybody's been talking about employment head count going back to 1951. >> yeah. >> that's crazy. i have no -- that's a lot of -- 70 -- >> 78,000 people last year gone. >> get rid of oil and gas and stuff, but --

>> that's a stunning number. >> larry means business. that's why i felt that our great friends ought to reevaluate, because this man is -- he means business. and, by the way, he's still not done. he says his power's not that good. but onshore windmill are doing very well. not that you care. but a lot of megawatt age. >> why wouldn't i care about onshore windmill had course i do. turbine -- >> getting a little better. health care very strong. but aerospace is amazing >> but an hour of -- but the question is is power -- >> he says he's not done power. >> it's the bottom. >> he seems like the nicest guy in the world. i happen to think he's the nicest guy in the world. i think that he's got a whole new management team, new board members. i don't know from you don't deliver, i think that something -- he's a little belichick like is what i'm saying. but he's not -- he's not mean, he's not wearing a hoodie, but he has a belichick attitude. i think he wants to win. >> no, he doesn't, he wants to

win. >> he wants to win. >> yep. >> what are you focusesed on that you're mimicking me and not paying any attention >> i'm trying to put together -- >> not like a surprise party, we read those snippets that made me sound totally like i was bat [ bleep ] oh, [ bleep ]. >> sorry. >> i'll save you here, jim. >> i'm sorry, i didn't mean that. i'm really sorry. >> after palo alto last night, are there any implications for sales force tonight? >> stock support. i don't know why it's run. why is it running? gees that's just crazy. all these stocks are running so much. >> yeah. >> i wish that they weren't. think mark can keep off -- but, you know, running ahead of this, these have all been going down and down and down. but mark has delivered a quarter as a single best quarter they could ever do. i don't know how you do it in this environment. maybe he could do it, but that's

a rough one. >> we'll get a sales force and version galactic tonight. >> version galactic stock -- >> never goes down. >> won't stop. >> there's no coronavirus on mars. >> that's a good point. >> yeah. it's a health play. i hadn't even thought of that. >> i'm going to space. >> i won't need a mask there. >> no, you won't. >> i'll just need an entire suit. >> yeah, you'll take that 3m thing and throw it away. >> yeah. >> and no shaking hands when you're on a plane. >> i'm so dow's up 100. let's get to bob. >> happy tuesday, everybody. dow up nicely. home depot is helping good earnings but we still have those profit warnings from mastercard, united airline. still weighing on the markets. you seen the bounceback here. the emerging markets, tough month for them. semis modestly on the upside this is a little ominous here. materials and industrials still very obviously exposed to coronavirus. nothing going on here. no real signs of a bounce. keep an eye on that. and banks, ten-year yields at four-year lows right now here.

so several important sectors here not participating in this rally at all. and obviously you want to keep an eye on that. in terms of the coronavirus, in fact we still don't know. but there's a lot of people taking stabs at it. oxford economics out with a widely cited study this morning. global economy could have more than a trillion dollar loss. we're talking about $90 trillion for the global economy. but that's quite important overall. global growth could go to 2.3%, that would be the low northwest several years. china growth could go to 3.8. we were talking 5% to 6% just two months ago. so these are all estimates. we don't know where they're going, but there are companies out there trying to take a stab at these overall losses. i think it's important to note this is still a very much garden variety, even mini correction. global stocks are not down that much. if you take a look at what's going on, hong kong is the only really major group that's in any kind of construction down more than 10%. we're down 11% for hong kong. shanghai's down 8%.

japan's down 15%. you're at 5% in the u.s., less than 5%. so fwhar mibear in mind we're nn a global catastrophe. so just keep it in perspective here. there are some big caps, tech stocks in the united states that have been sort of in a correction mode here. disney, intel, microsoft, facebook, they're all down 10% or more from their 52-week highs. which in almost all cases disney was just a while ago, a month or two ago, but all of these are fairly recently off. it's not that there isn't any damage at all, there is, but remember the run-ups these stocks have had going into this whole mess here. s&p 500, in terms of the estimates, they've been coming down rather aggressively in the last few weeks. today it's at 3% is the estimated growth for the s&p for the first quarter, which is the one we care about. january 31st it was 5.4%. this is much more aggressive downturn than normally happens. obviously this is due to

coronavirus. now, financial journalists like us, we tend to make fun of the analysts because they tend to be slow taking the numbers down the market reacts to then they take their numbers down. but in this case they have been aggressive since the end of january particularly in certain sectors. automobiles down 30% since the end of january. these are how much the earnings have come down since the end of january. capital goods down 13%. energy down 12%. materials down 12%. so for once, david, you could say there are people out there that have been aggressively taking down the numbers even before the market actually did so. guys, back to you. >> all rye, bight, bob thank yo. bob covering all things market related. let's get to hp and xerox, that battle continue. yesterday we got numbers after the bell and they were good for hp, they were strong numbers in terms of where the analysts were and the company meeting those estimates. but more importantly it was the plan that hp unveiled, what it's

calling its strategic and valuation plan over the next few years that has the attention of shareholders and relates to what may be coming talks with xerox. more on that in a moment. as for the plan itself, the headlines there, a return of capital, as much as $15 billion in total share purchase in terms of the authorization, totalling $16 billion in capital return planned over the next three years. that would be about 50% of the company's market value, although it's a bit more today given that 4% rise. 8 billion of that share we purchased is scheduled to take place on what we call an accelerated basis almost in the 12 noons foll 12 months that follow the annual meeting interestingly not before that. that meeting will take place in may, all the directors are up, it's the battle with xerox which is nominated for all the seats that are up, which is everything, the entire board, it's not a -- board and would allow of course the company to potentially take over and

institute it's -- because the -- would get polls so forth and so upon on. earnings from 20022022, $3.25 to $3.65. but there's been a lot of uncertainty and what we've been discussing the coronavirus and the like. when it comes to xerox, there are a lot of questions on the call there are was one line in the release in terms of all the different reasons why they don't feel zxerox at least at this point of where it's offer is, 1840 in cash and stock getting up to 24, they say that hp will reach out to xerox to explore if there's a combination that creates value for hp shareholders and its additive to this strategic plan. a lot of questions with the ceo regarding that. tony asking one of them in terms of, well, does that mean you'll

never envision a scenario where xerox would buy you or could you? here's the answer from lori. i don't think that who buys what is a real conversation. a real conversation is to make sure that either two companies get together, if, in fact, they do, we address the issues that we outline during the call. first we need to make sure the valuations of the two companies is fair based on the value that both companies will be bringing to the joint ebtty. we need to make sure the results in capital structure makes sense for the businesses, where we will be operating. they go on to point out they don't have that much overlap they also say we need to make sure there's a fair and clear settlement assessment of what the synergies are. and to clarify that, then who and how are things that will be discussed after that they haven't started those discussions yet as far as i'm aware in talking to people on both sides. but yo would expe but you would expect they would begin fairly soon. they put themselves in this position, xerox is up too on part that the expectation if

these do take place you end up with a deal in which hp potentially would actually acquire xerox. although right now, only deal in play is the xerox acquisition of hp. that's the deal that shareholders, as of now, will be voting on should there be no resolution in terms of compensation between the two getting anywhere in terms of a deal, who would run the combined company and so on and so forth. >> i'm shocked that hpq is not up more. it was a remarkable quarter. no one seems to care. buying back half of the company, including 8 billion in the next year, how can that not be noteworthy they beat every single analyst's expectations. when i speak with the company, i felt for sure the stock would be up a couple of bucks. mean, maybe at least a buck and a half. didn't seem to mean anything. >> wow. >> questioning whether they pulled earnings forward, why they're not starting to buyback sooner. you know, revenue growth still a question. >> gotcha.

>> coronavirus. >> all right. >> we'll stay on top of it, of course, as you know. let's head to the bond pits and check in with rick santelli who joins us from chicago. rick. >> good morning, david. well, the yield curve is melting from the short end again. look at one week of twos as we start to dip below yesterday's low. the same is true for ten, even though the amounts are only about a half a basis point, down around 1.22 for twos versus 1.23 and 1.35 for ten. let's look at a two-year. last time it closed at these levels, april of 2017. now let's go further back. let's go back to june of 2016 for tens. because tens at this area are toying with the lowest yield close ever, around 1.35 and change in july of 2016. and zoom back four years, july of 2012, same level. which really makes technicians

nervous. technicians don't like triple bottoms. the fact that we're hovering in the same zone as the double bottoms created in 2012 and 2016, is making traders think we're going to go through this and if it isn't now, we will come back and go through it which is making the long end quite sluggish as well. if we look at the relationship where the spread between the yields of ten year notes and yields of two-year notes, that difference right now is 12 basis points and the zip code is the flattest closes going back to 2019. finally another spread that's of major importance, that's the spread between ten-year notes in u.s. and ten-year bunds in europe. that difference is 1.86 basis points as we continue the u.s. yields, the safe haven trade say much bigger magnet than in the safe havens of the sovereigns of europe in the form of bunds. that's the closest our yields

have been since around september of 2017. carl, david, jim, back to you. >> along your discussion about the curve, we did open up. had a gain as high as 188 points, then briefly went negative about 18 minutes into the session. currently up 20. back after a short break. imagine traveling hassle-free with your golf clubs.

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expectations 107.8, 102.5 in the rearview mirror. finally, 165.1, that's over 10 points lower than 175.3 of last month. carl, back to you. >> thank you very much good tuesday morning welcome back to "squawk on the street." i'm carl quintanilla market opened 188, briefly went

red. now recovering first reported cases of the virus in croatia, austria and just a few moments ago switzerland. >> a roadmap for the hour starts with the volatile markets. early gains quickly fading with the dow and s&p briefly turning negative this on the heels of the worse selloff in more than two years. >> combating virus, moderna shares, first experimental vaccine for human testing. >> mortgage rates expected to continue to fall amid virus fears. we'll take a look at what to expect. >> virus fears, stocks now positive, dow up 80 points coronavirus numbers continue to climb. now exceeding 80,000 with deaths surpassing 2700. live in beijing keeping us up to date on headlines eunice yoon.

>> reporter: sara, another province downgraded its emergency response level for the most part back to normal state tv reported china is going to throw an additional $71 billion in funding to small and medium-sized enterprises and this is after authorities earlier in the day had said that the rate of the resumption of work for smes was only 30% the government had also said several projects in railways, airports, as well as highways had stalled. a lot of that is because migrant workers are really -- the people who do a lot of that work and reluctant to or restricted from traveling. the authorities here have a difficult task, which is they are obviously trying to get people to go back to work at the same time. their actions have been revealing they are bit uncertain about whether or not the virus

has been contained for example, schools have extended their closures not only in shanghai but also today guangdong province, a big manufacturing province said it's going to be keeping its schools closed until further notice. the students can continue their studies -- resume their studies as of march 2nd. hong kong said it's going to keep its schools closed until april 20th here in beijing, encouraged to have more staff come back to the office but then office buildings, including cnbc's, now have notices in the elevator which say only four people are allowed to be in the elevator. obviously there are a lot of mixed messages here which don't instill a whole lot of confidence that the virus has been full contained.

>> eunice, as far as the numb s numbers, they going down or getting worse? >> they are going down that's one of the reasons why the authorities here have been saying it has peaked we heard the idea of a turning point before and hasn't materialized still a lot of uncertainty about where things are headed. >> eunice yoon, thank you as always from beijing. markets looking to rebound after 3% drop yesterday, worst daily performance of the major averages in two years. joining us tobias, and john, chief investment officer tobias, how do you even wrap your head around a potential global pandemic. w.h.o. not calling it that but

judging by yesterday's stock market, that was clearly a consideration. >> the catalyst now, we have to not lose sight of the human tragedy of this all. sentiment was really our panic model euphoria territory, signal the down market. household equity exposure as a percent of financial assets is already at 50-year highs it's not like there's a lot of dry powder sitting on the sidelines. number three, earnings provisions already slipping even before the coronavirus data started coming out so the backdrop was vulnerable already, then you have this horrific event occur with most of the information, i was at industrial conference in florida, i'll give you an example. one company noting they have 100 different suppliers facilities in china, both local and global selling 500 different kind of

components the logistical nightmare to try to get that up and running properly is kind of a problem when you hear about schools in hong kong staying closed until april. >> so how long are you looking at as far as economic disruption is that even possible to tell if you're looking at things like supply chains, factories reopen and consumers on the demand side as well? >> i don't think it is possible to tell exactly, but i think what we know is it is a short-term rebound think, not a long-term you're dead thing for the economies, in any case the recent data are really very bad in terms of shipping and container usage and so forth they are going to get a lot worse in the coming weeks companies use up inventory of components and parts from supply chain partners but we've seen this movie before i have an entire shelf, sarah, on books on plagues and

pestilence i study epidemiology and teach it in graduate school at the finance level. there's lots and lots of dat how epidemics work they work fast you come back from it. there's a lot of data recently in china from sars and the bird flu epidemics. both of them were worse in any metric you want to make. th than this one is so far. the swine flu was worse in the u.s. in 2010 i think what we're facing here is short-term economic things that are happening and short-term market responses. one of the things i teach also is behavioral finance. there's a new bias i'm inventing called the armageddon bias which means whenever we see terrible news like this, we think the entire world is going to end the entire world doesn't end very often this is incredible opportunity to buy slowly and carefully, only robinson crusoe stuff, the

ones you would own 50 years if you were on a desert island and the ones especially in people's sights about the coronavirus this will pass, and we will end up with markets and economies back to normal again at some point later this year. >> did not know that you had that expertise in studying viruses, john. so make the case -- it sounds like you're making the case for v-shaped recovery. currently there's talk about u-shaped recover, not as robust in terms of a comeback why do you see it as a v >> because for two reasons the nontechnical reason is because this is happening because ships can't move, containers can't move, workers can't get to work, and people can't get to the store to buy stuff. all those things end at a certain moment when the all clear sounded from the actual contagion itself the technical reason is because

transported goods and production of goods, in terms of the network of resources are actually distributed in a way more like economists think is normal that is not too many great big and little episodes. financial markets, however, are distributed very differently it's called power lock it means you have huge ups and huge downs that happen, which means the risk is more on the financial markets. chinese debt, chinese shares posted as collateral with debt for banks. bank's inability to get working capital to chinese companies because most of them are private and didn't use the big banks and so forth short-term financial crisis issues. >> so tobias, united scraps the full year outlook, mastercard lowers its revenue growth forecast how do you think about the reassessment of the earnings picture here and what's priced in the market. >> the question is how fast you

can kind of get back to normal, whatever that really means again, we're listening to companies talking about this last year, narratives, real companies dealing with this and saying if they are shut down for another week, they can make it up for the balance of the year if they are shut down for a month or two, they cannot make it up for the year the earnings are vulnerable. second half rebound unlikely when commercial and commercial lending standards are not improving. so the v-shape is really unlikely if you look at any historical economic data remember, the u.s. particularly counts for over 70% of s&p 500 activity so from that perspective china 5% at most it is not the driver. >> so tobias, really quickly, in your sentiment you do so often what do you see after yesterday's shakeout are we primed to rebound meaningfully or is there still more pain to come? >> i doubt it. i think there's still more pain.

when we hit panic euphoria, 70% average decline and we test this back over 30 years, the average decline is 9%, median decline is 12%. so we're talking about run-of-the-mill correction, not a bear market or recession or anything like that i would kind of wait for the market to come to me and not jump in because it was down a very sizable number yesterday and feeling, okay, everything is clear. >> tobias, john, thank you both for joining us. >> thank you. >> you're welcome. >> let's continue the discussion about this, the virus, of course, with richard fisher, former president and ceo of reserve bank of dallas and cnbc contributor. good to have you back. good morning. >> thank you good morning. >> it's been a fascinating week of commentary especially out of the conference, you have mess ter saying unclear how cutting rates would help spur economic

engine again, you've got your former colleague saying let's do a 50 basis point insurance cut now. where is the answer? >> well, he's no longer at the fed as i'm no longer at the fed. the real question, if this is a supply shock, what good with a rate cut do, particularly operating businesses the three-month is still unverted to ten-year, which is trading near the low to july of 2009 inner day low 132.13, as i recall, so we're getting there you look at the two-year to five-year, operating cost for corporations, money has gotten cheaper, not more expensive. the question is what impact would this have? the answer is it's doubtful. then you have to also ask the following. if this is, indeed, a real black swan event, just so i nickname it because coming out of china a

red swan, then you want to have some money left in the bank. you've got to have action you can take there's not a whole lot of coins left in the fed's pocket you have to spend carefully, i said this many times since cutting rates. going to be cautious unless an impact on the economy. richmond fed survey isn't as powerful the anecdotal reports from corporations all have to do with supply chains. i'm not clear what a fed cut of the fed funds rate would do to goose supply chains. you really can't solve the problem in this way. i would not be advocating for a cut here. >> the second point of that argument is that while it might not help, it might also increase as yesterday do you agree with that >> i do. i thought the commentary earlier about how -- again, this is just a personal observation, the view of barclays or any other firm

i'm associated with. as was said now in a previous segment, this market was very bullish. i'm worried about a couple of things, by the way first on china the best announcement i've seen comes from a professor at harvard business school. it's worth looking at and getting him to talk about this because he understands the internal dynamics within china he's been talking about this for quite a while. it really is messing up the entire system. the trip wire then goes to japan. we've seen their export numbers. they are awful singapore, vietnam, even taiwan. it affects the whole arby around that that, in turn affects and infects the different supply, put into an input into an input. i wouldn't discount this as having no effect on the real economy, i think it will have a real effect on the economy

realty speaking as i said earlier, we in the united states are in relatively good shape i think that explains perhaps where the ten-year is trading, a flight to safety, money that comes in a world of negative yields and not very attractive economic in germany and elsewhere in the european sphere certainly not the asian sphere it drives our rates down the question is, is it signaling a recession here or just sort of a flight to safety that needs to be debated fully that's what would lead me to conclude at this moment that the fed really can't do much here. besides that operating rates are down. >> on the flip side, richard, it's not just a supply shock there's also a major demand factor here both in china an around the world. >> good point. >> consumers pull back, airlines, restaurants, these are all services >> yes. >> if you look at growth slowing that does trickle in the united

states, if we are looking at lower growth and lower inflation rates the fed can come in. it has room to cut rates we've seen that. we saw it last year. >> that's true the question is what would be the efficacy of those rate cuts. the one thing it did affect stocks and tradeable assets trade but did it have an impact on the real economy? highly debatable. >> the yield curve on inverted and talk of recession out of the mix. the stock market does have an impact on confidence, doesn't it >> it does you know, obviously the manufacturing sector has been suffering. we've known that all along the good sector has been since 1986 service sector whatever counter pressure on prices has been coming from. consumption has been strong. if you have a crisis of confidence, and that's what we could have here, then you're absolutely right, sara, it can impact consumption but at the same time we're fully

employed when you're fully employed you consume. the savings rate is high there is cushion from the consumption side of the economy and the fact we are less inner dependent -- although still inner dependent -- less than other people and that leads people into capital from our markets for safety that's a boost for anyone who needs to borrow money. i think we have to be very careful analyzing this great thing about the federal reserve is that they are extremely thoughtful in the way they look at things. they take their time they don't react on a shoulder jerk fashion i have great confidence in the fomc and especially powell. >> speaking of powell, leverage loans, kraft to junk, rating agencies you could argue, i wonder if we are getting closer

to the locus of his concerns the spread over investment grade. they have widened a little bit that's of concern. the debt loads are high. if rates were to rise or inflation were to come back, that would be to great concern i think he's just really highlighting these kind of knife edge threats saying we need to be cautious. he's been at g20 in riyadh, so haven't heard from him lately. we haven't heard from him laltly priced to perfection an upsetting event, whether black swan or red swan, whatever it is, that can upset the balance. we've seen the last few days, trading days. >> richard, thanks appreciate it. we hope to talk to you again soon. >> i don't think i added anything to the conversation

>> thanks so much. >> always adding to the conversation we are getting some new data, jpmorgan investor, wilfred frost is there and joins us with the headlines. hi, wilfred. >> jamie dimon, chase, ultimately turned down, all of this according to a source that mary a mari marianne lake was approached three things stand out for me on this it's quite hard in this business to really go into discussions about taking a job at a rival and still survive. clearly that's what's happened and everyone getting on well at

the suite at jpmorgan. number two, a sense there was so much to do at wells fargo according to the source as one of the reasons not to take the role versus what has been built here at chase. number three, that sense of a ceo factor we talk about that quite often under jamie dimon here at jpmorgan, if both lake and smith approached, scharf who took the job was once a lieutenant to dimon at jpmorgan. gordon smith and pinto, the other president and ceo and we're expecting to hear from jamie dimon himself at about 11:45 a.m. guys. >> the it also strikes me, there's such a deep bench of talent there so many names that can go on to become ceos. not even mentioned when it comes to jamie dimon's successor, has he >> the key difference there is his age. he's only a couple of years

younger than jamie dimon so if mr. dimon does go on for another three to five years as the sort of official line from jpmorgan at the moment, then by that point gordon smith probably would be too old or not young enough, however you want to frame that exactly of course if you go through the way people analyze things over the last couple of years, if anything were to happen all of a sudden, he would be right fiscal year the top of the list three or five years out the line the younger crop come in >> the next crop of bank ceos will be female i think that's the bottom line thank you, i'll see you later. wi will fred frost. a quick check on the housing sector the markets, gone negative again. yo-yoing around flat line. we gave up 188 point gain

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call today. comcast business. beyond fast. markets are lower, s&p down half a percent, this after a higher open, first 45 minutes of the session. we have fallen you can see

the dow, of course, also down. as for mortgage rates, well, we've been watching, of course, overall rates 10 and 30-year mortgage rates fell to a new 8-year low yesterday and that could mean a big rush to refinance. can the big banks handle it. diana olick has our report from washington diana. >> mortgage applications were up a stunning 165% annually over a week ago, and that was before this recent big rate drop. 30-year fixed fell to 3.34% according to mortgage news daily matching lowest level in eight years. that will only add to the unexpected refi boone that started a few weeks ago. we're seeing tremendous growth happening. >> we're seeing just tremendous growth happening the slow interest rate environment does drive refinance. from affordability perspective is also really positive. >> more than 11 million borrowers can benefit from refinance lowering by 75 basis

points according to calculations from black knight. refinance is surging bank of america does not need to hire new staff to handle it. he says new technology is making up for that. 45% of b of a mortgage applicants do the process online. >> enable us to give our clients a great service experience, make sure we're able to close their loans on time and meet surgeos n demand pretty quickly. >> quicken loans sending e-mail blasts not only to customers, i got one, to refinance now, take advantage before rates turn higher again on the buyer side demand has not been as strong as one would expect because of rates and shortage of homes for sale. >> diana olick thank you. as we go to break here taking a spill an hour into trading we just took out yesterday's s&p low of p 217, there's dow laggards

back in just a moment. 217, therw laggards back in just a moment. 217, therw laggards back in just a moment. 3217, the laggards back in just a moment. ♪ ♪ we're committed to making college more affordable., that's why we're keeping our tuition the same through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu.

welcome back i'm sue herera, here is your

cnbc update at this hour president trump says he thinks the u.s. economy will tank if reese not re-elected trump saying he needs no outside assistance to win this november and he defended the firing of his acting director of national intelligence joseph maguire. >> i want no help from any country, and i haven't been given help from any country. as far as maguire is concerned, he's a terrific guy. march 11th, his time ended anyway his time came up we would have had to -- by statute, we would have had to change him anyways. a protest against new camps for migrants in greece turning violent. crowds lit tire fires and built blockades near a detention center riot police firing tear gas to disperse the protesters. hosni mubarak has died known for maple tang peace with israel but also ruling with an iron fist.

he was ousted from power during arab spring in 2011. hosni mubarak, dead at the age of 91. you are up to date that's the news update at this hour sara, i'll send it back to you. >> thank you time for etf spotlight with gold prices pulling back from seven-year highs, taking a look at the gold miner's equity gdx currently trading lower by a third of 1%. the top holdings there all up double digits. leading the pack with a 17% gain, barick a nice bid for the year. >> meanwhile closure of factories in china due to coronavirus is causing ripple affect at the u.s. norristown. ylan mui in charleston with a closer look. hi, ylan. >> hi, carl. trucks are rolling at the port, all the major shipping lines are

here we saw 00 cl earlier officials say they are bracing for a slowdown that could start as soon as next week due to the outbreak of coronavirus. south carolina exports $5.6 billion goods to china each year officials say that number could potentially be affected. behind me you see the container activity around refrigerated containers trucks pick them up or unload them and take them through a station where they are checked to make sure that the temperature setting is correct and the equipment is working properly that is really important for poultry producers. we send a lot of frozen chicken feet over to china they tell me they have already seen back logs at chinese ports because of the work stoppages there from the coronavirus but some of the biggest industry that exports from this port are the auto industry, airplanes and tir tires. >> advanced manufacturing is export oriented manufacturing. many of the companies that have

come to south carolina, many of the manufacturers have done to precisely because they have access both to global markets as well as domestic markets >> reporter: now, they do not expect the coronavirus could tip south carolina into a recession. the state has one of the strongest economies in the country. but david the fear here is that the dampening of momentum could take shine off success particularly in the first half of the year. back over to you. >> important part of the story ylan, thank you. when we come back, we're going to break down how investors should protefsct p amid volatility as you can see markets are down at the lows of the session "squawk on the street" will be back in two minutes. ( ♪ )

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stocks are down. we had begun the session up. you can see s&p in negative

territory to the tune of .66%. coronavirus sparked a significant selloff yesterday. joining us now from morgan asset management and mark zandi from moody's analytics. let me start with you. is the market responding to the virus spreading around the world and the impact it will have? >> i think the market is i think the big concern from the investment community is you can be contagious while not exhibiting any symptoms. it's very difficult to track exactly what's going on and how much the virus has, in fact, spread in and of itself it looks like the flu. i'm not trying to take it lightly, it is flu like. the real impact what the spread looks like economic and financial impacts, factories closed longer, businesses airing on the side of caution we're trying to tie back to outlook for growth, outlook for corporate profits, fourth quarter behind us are under a

bit of pressure at the current juncture. >> mark, a lot of people have been trying to gauge the impact from the shutdown and chinese economy, such an important cog in the overall world economy but a lot of experts believe it's not about containment, about mitigation and will get to this country and impact economic activity here. do you agree and do you have any ability to sort of forecast what that would mean? >> no. david, i don't know. obviously the probability that the virus will jump and become a pandemic that will come into the united states is much higher than, say, a week ago because of recent events in italy and korea and other parts of the world i think that's what the market did yesterday was attach a higher probability to that pandemic scenario. of course, if it is a pandemic, if it does show up in europe and the united states and that is the prescription for a global and u.s. recession you know, the global economy was already very, very weak before

this because of the trade war that we were engaged in last year the european economy was just teetering on the edge of recession. even the u.s. economy we were okay but we were back down to 2% growth we were already pretty vulnerable and the risk. if it does jump to pandemic, i don't see how we avoid a recession. >> david, as you point out, the hope certainly is the vast majority of the people who contract the virus will recover. that said, the fear of it, if and when it gets here in a real way, this country will perhaps prevent people from congregating in certain ways. there is a measure, anything that gives us a sense to what it would mean >> i'm not sure we have necessarily a good historical precedent. what is most interesting and you hit the nail on the head, the sentiment impact and unwillingness of people to congregate in large areas, go out shop, eat, so on and so forth, that's the risk when we get flash pmis last

week, the only data we've received since the outbreak of the virus, when we looked at the service side, holding up broader global economy for the better part of the last 18 months, that was showing signs of downward pressure not only do we have investment and manufacturing part of the economy which is beginning to get legs back underneath it when the virus hit, you're now seeing it spread on the effective service side which increases downside risks for growth and markets at this juncture. >> wonder if the market is making the leap if the coronavirus spreads to a pandemic, spreads to the u.s. economy, flows through the u.s. economy, improves bernie sanders chances of beating donald trump, if that's having an impact. >> i think what's most interesting is the willingness of the market to look through the whole virus. you would think if you were looking first, second quarter you would land square on the election in november the reality of the situation is regardless who ends up in the white house it looks like those fiscal taps will stay open

i think the market may be looking at the glass half full, assuming it doesn't wipe out global population the virus will come and go. november following years, in store for more fiscal stimulus to me that's an awfully rosey narrative to price at this juncture but that's how interpret what the market is doing. >> can i make a point about th election and the virus if the virus comes here, that's an act of god. i don't think anyone gets blamed for that what would have political implications if the virus comes here and the response, policy response is botched, that would have serious policy implications remember back to katerina. katerina hit new orleans that was an act of god what we did to the folks in new orleans after that was not that was botched policy and that severely hurt president bush's re-election chances at the time. what will matter here i think

most in terms of the mind of electorate, what does the president and its administration do and how well do they respond to this. >> i just saw a tweet citing you on stage saying trump is the lakely winner and the economy will drive outcomes, that charlie cook, famed pollster, said with this economy should have higher approval numbers. >> keeping tabs on me, carl? let me explain if the economy is performing as well on election day as it is today, if the president's approval rating is the same on election day as it is today, and if turnout is typical, meaning average turnout for ds and rs we've experienced in recent elections, then, yes, president trump will win this election those are a lot of big ifs with the coronavirus that's a big if with the economy, the policy response to the coronavirus, that's a big if for the president's approval rating. of course who is the democratic nominee will have a lot to say

about turnout. there's a lot of ifs there you take it straight up, the president should win this. >> a lot of ifs all over the place here david, mark, thanks for trying to at least answer some of them. >> and acts of god as we head to break, take a look at shares of moderna spiking after shipping a coronavirus vaccine for u.s. government researchers to study a check on the coronavirus headlines. all of them for u enyowh "squawk on the street" comes back. the dow has definitely turned lower and down 145 from managing inventory... to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

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welcome back let's check in with meg tirrell for latest coronavirus headlines. >> just completed a tour through china saying the country took a very systematic approach to contain the virus. the doctor citing old-fashioned public health tools like

controlling the movement of people, which he said china did in a tailored way on the transmission in different parts of the country and turbo charged response, using big data and artificial intelligence. this comes after w.h.o. said yesterday that an experimental drug made by gilead appears to be the only one with promise we learned this morning the u.s. is planning a critical trial of the medicine run by university medical center and allergy and infectious diseases. the trial will test the drug against a placebo in almost 400 patients at 50 different sites global according to a protocol on government clinical trial database and expect more details from nih today finally public health experts closely watching new hot spots for the virus around the globe cdc increasing warning to a level three, meaning to avoid nonessential travel as cases there approach 1,000 level two warnings in place for italy, japan, and iran we received news this morning that iran's deputy health minister has tested positive for

the virus. he's now in isolation and said in a video message, quote, take care of your selves. this is a democratic virus and does not distinguish between rich and poor, powerful and not powerful it may infect a number of people guys. >> meg, we were just talking on the desk about what would happen if it would come in a bigger way to the united states, what the level of preparedness is from u.s. authorities and whether we could do anything like what's been done in china to contain them. >> we are expecting to hear from the cdc at 11:30 this morning on updates on the response. we know that the white house has requested $2.5 billion for the response still a lot in the public health community, a lot of people are saying that's not enough we need to increase our testing capacity currently on five state labs, public health labs can do it we need to be increasing surveillance these kind of social distancing measures, meaning closing schools, telling people to work from home, that is language we're hearing from cdc about potential mitigation if we do

see this here in a big way. >> indeed. schumer is on the tape now, meg, calling for at least $3.1 billion in new funding for a response meg tyrrell, thanks. cme, the santelli exchange good morning, rick. >> want to welcome my guest, no stranger to cnbc viewers jim, let's get right into it obviously the human factor of the coronavirus is serious, we can't make light of that in the big picture hasn't the united states done a dress rehearsal in dealing with issues that can throw supply chains into turmoil >> the trade talk and trade war talk, every country in the last two years has contemplated -- >> they didn't solve it but have been thinking about it does it make them think about it more or less. >> more. >> bigger vin diagram of ceos

not just u.s.-based. >> what's going to come is globalization. we're going to look at the idea we need to move away from being dependent on one country or one area for things, especially strategic things like pharmaceuticals and stuff so we'll have to move past it. >> or more difficult when corona gets under control? >> more difficult because people are going to be looking to not be there let me bring in a -- >> china may be more amenable to doing something with the u.s., whether the u.s. will be more amiable to embrace more globalization, which i think creates an interesting dynamic for all you investors looking to keep your funds for retirement and multinational zones opinion. >> exactly if this gets worse, and there are supply shortages, strategic things like pharmaceuticals, it doesn't matter what ceos think they'll be told don't put yourself in that position again. maybe you want to look to making your stuff other places around

the globe so you're not dependent upon china in the future if that happens, then the deglobalization becomes unstoppable. that becomes the long-term story. >> there's also a political sidebar to this i heard discussed. you brought it up. brexit is the perfect analogy. we only have a minute. >> we were talking about the uk leaving the eu and setting up its own trade rules. that's the uk/eu supply chain. they were paralyzed. they couldn't figure out that supply chain this one is global and much more complicated and we have much less time to figure it out, so the answer is going to be we don't know it, let's just deglobalize, take this stuff in china and put it somewhere else. >> and the government always looks at you and says we can do things better, people, socialism on the rise, they look for things from the government because they'll be more benevolent but not necessarily good at anything

>> that's exactly right. look at japan. they had the diamond cruise ship they through their inability to handle that properly has let that virus into their country. if you start looking what's happening in italy and everything else, it comes down to a mishandling of the situation, which is going to further put doubt in institutions that they can handle this, which is going to make people think i have to protect myself, which gets us back to deglobalize. >> jim bianco, always fascinating, thinking about the future chapters and how many permutations can arrive from this coronavirus issue david faber, back to you >> thank you, rick over to jon fortt so we can get a look at what's coming up on "squawk alley. >> finance software giant intuit has announced it's spending $7.1 billion, 10% of its market cap, to acquire credit karma. we have the ceo coming up on "squawk alley.

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i'm dominic chu. stocks falling again the market's worst day in two years. we are right near session lows right now, almost record lows for 10-year government bond yields as well the energy sector down 1.5% or so occidental leading that and marathon and diamondback energy as well. those names trending at lows not seen since march of 2016 of course this is oil. it slips for a third straight day as fears around the spread of the coronavirus and its potential impact on oil demand continue to affect opec and others david, back to you at the new york stock exchange. >> a lot to keep track of of course we have the market now down 1% should mention, sara, the 10-year yield i think a new low, 1.323. >> the record closing low was 1.36, so we're well below that

dramatic action into yesterday's close and it's looking ugly today on top of the 1,000-point spill, down another 250. we'll cover it on "the closing bell." we have a great guest today. mario gabelli, longtime investment pro we'll talk to him about how worried he is about this and whether he's using this selling as an opportunity to pick up his favorite names >> we'll cover the sell-off as it picks up steam. am pnt ocreroiedut on twitter, spike's about 26

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