when you're in these tough down markets, that's -- we'll see what happens >> you felt rich last weekend and now you're down for the year >> thanks for watching "power lunch", everybody. "closing bell" starts right now. >> where the market is plunging for the second day, it is dow now down over 700 points that comes off yesterday's sell-off >> and we are on watch for coronavirus briefing this hour from the department of health and human services, today marks a stark change in tone we'll, of course, bring you that news conference as soon as it begins in the meantime we have breaking news from the fed related to the effect on the global economy steve liesman has that for us.

>> federal reserve vice chairman speaking in washington to the national association for business economics, saying that the fed is close log monitoring the coronavirus. >> so maybe a slightly different tone than last week. he said it will be a noticeable impact on china in the first quarter, and that could spill over to the rest of the global economy. too soon to speculation on the size or persistence of those global effects the probability of rate cuts reaching all-time highs for the individual contracts, april, a first duty now at 63%, it is probability of a second customer, and now over to 50% for a third cut in december for the first time, so the majority of position in the mart right for you, sara, going along with a huge decline in the ten-year to all-time lows and the

downdraft in the stock market is now for there to be three rate cuts this year from the federal reserve. >> i know we parse every word from every fed official. is the bottom line here that the fed is maybe storming to warm to the market's position that rate cuts are coming? >> i think you say it right in two ways, yes, we parse every word correctly, i think when he uses we'll respond accordingly, that's stronger, leaning more acknowledging the risks that has been in the past or any of the fed officials have been so far sara >> steve, thank you very much for that checking in on the markets, with 58 minutes left of trade, we are down less than 700 points.

barbara, what do you do on a day like this? particularly given that it follows three days of -- >> now, this is significant, because this morning, the market attempted to buy on the dip, and i think they were quickly disabused. i think we'll see continued volume tilts, it's reminiscent of the volatility from the last 18 months. that's what's going on with the coronavirus. we no longer know, we thought we were getting in clarity, the outbreak could last a lot longer and we don't know the damage >> barbara is with us for the first full hour of the show and mario gabelli will join us in a few moments' time. mike santoli has his market

dashboard, and meg has more on the virus. >> and let's begin with the broader sell jot >> we've entered the season the sack sacrifice the megacap growth stocks, and just look at what they have done over the last year, and how much of the fourth quarter advance that we actually had and enjoyed in leading growth stocks we have now given up we're actually a good deal through that 50-days average we did this chart earlier. what's on the bottom panel is the relative strength, just a measure of the trend, either in an up trend oar down trend don't worry about the units, it's matter of relative. we were more washed out if you go back to may and august of last year. you're concerned of nearing the level.

similar story yields all-time lows. mike, excuse me one moment we'll interrupt briefly and good to the hhs secretary. >> dr. robert kadlikhhs's assistant secretary for preparedness and response and dr. steven hawn, food and drugs. as of this morning we still only have 14 cases of the china coronavirus detected here in the united states. involving travel to china or close contacts with those travelers. we have three cases among americans repatriated from wuhan, and we have 40 cases among american passengers repatriated from the "diamond princess" in japan i want to thank the responders and communities that have worked with hhs and the administration to provide these americans with the treatment they need. i'm also grateful to the

governors, and other state and local leaders, who have worked with us in close partnership so far. the immediate risk to the general american public remains low, but as we have warned, that has the potential to change quickly. there is now community transmission in a number of countries, including outside of asia that's deeply concerning, and community spread in other countries will make successful containment at our borders harder and harder. that's why we've been working with state, local and priefer-sector partners to prepare for mitigating the virus's potential spread in the united states. we will likely see more cases here, as we have said throughout this episode the doctor will provide more details, including how we would treat potential cases that would arise from community transmission here in the united states this preparation has been possible in part because of on

you aggressively president trump has responded to this outbreak as soon as we knew of the threat presented by this novel virus, public health leaders were monitoring it and beginning to prepare. the travel restrictions that the president put in place at the beginning of this month have given or country valuable time to continue to prepare, and it is precisely what those measures were designed to do. that included working with congress yesterday the white house sent a request to congress to make at least $2.5 billion in funding available for preparedness and response there are five major priorities within the supplemental request, which i underscored this morning before the senate appropriations committee. first, we need to expand our surveillance work, building on an existing system we have within cdc's influenza surveillance network second, we will need funds to support public health

preparedness for state and local governments for what could be a very large-scale response. we don't know, but we must prepare. this complements the significant funds these partners have received third and fourth, we need to support the therapeutics and vaccines the private sector sees a real market for both kinds of counter-measures, but federal funding and guidance can accelerate this work dr. fauci will address that in more depth fifth and finally, we need funds for the personal protection equipment for the stockpile, and topic that topic that dr. katlik can address.

including other members will be providing a new update from interagency leaders soon, and we expect to continue doing so regularly. earlier this afternoon on cnbc, the national economic council director larry kudlow offered an update this morning dr. messonier had the -- >> the trump administration will tinge to be aggressively we'll continue keeping as well as what everyone can do to prepare i'll continue to prepare to keep americans safe i'll hand things over to dr. shookut from the cdc. >> thank you so much it's a difficult and uncertainly time we look with ourpartners aroun

the country and around the world have been confronting a dynamic rapidly evolving situation i'd like to let americans know that cdc and our nation's public health agencies are preparing every day for this type of situation. preparedness started long before this outbreak. the u.s. government's response for the coronavirus into our country began as soon as reports emerged from wuhan, china. the u.s. has been implementing an aggressive containment strategy that requires detecting, tracking, and isolating all cases as much as possible, and preventing more introductions of disease notably at ports of entry. we've restricted travel into the u.s., and have issued multiple travel advisories for countries currently experiencing community spread travel notices are changing

almost daily as we get new information. we believe those precautions are working so far, as secretary azar described, our system has detected 14 cases in travelers or very close contacts of travelers here in the united states among passengers repabatpatriar, there are an additional three and 40 cases the fact that we have been able to keep cases to this low level is an accomplishment, especially given that we are unfortunately beginning to see community spread in a growing number of other countries. based on what we know right now we believe the immediate risk remains low. we're working hard to keep that risk low, but we must use this time to continue to prepare for

the event of community transmission in the united states part of that preparation is educating the public and our state, local and private sector partners what community mitigation would look like, should we end up there you aren't our current posture, patients infected with the coronavirus who have mild or no symptoms are being placed in health care facilities for very close observation and isolation. that intensive level of medical care is not typically needed, as we have watched these cases and learned over the past several weeks we realized that other approaches to management are likely fine. outside this period of aggressive containment, the usual and appropriate care for most patients who develop of novel coronavirus or covid-19,

would be care at home. those with severe presentation require closer observation we will maintain for as long as practical, a due all approach. where we continue they measures of aggressive containment to these disease, but also employ strategies to minimize the impact on our communities. however current global circumstances suggest it's likely this virus will cause a pandemic in that case, risk assessment would be different, and new strategies tailored to local circumstances would need to be implemented to blunt the impact of the disease and further slow the spreads of the virus what the interventions would look like at the community level will vary, depending on local can thi conditions, and on the emerging

information. it's not a question of if this will happen, but rather more a question of when this will happen and how many people in the country will become infected, and how many of those will develop severe or more complicated san diego. we have been preparing to address this type of threat and limit the impact of our communities. we've begun laying out what it will look like to mitigate the spread of the virus. they're obvious common-sense tools like good hygiene, social distancing, things like staying home when you're sick, things we talk about during a difficult flu season or things like we talked about during the h1n1 pandemic there is literally a playbook for the use of these tools and

one that the states and local public health have exercised we are committed at the cdc and across hhs and the u.s. government to radical transpatterns, to make sure we're shear what we know when we know it,o, and giving you a sense of what the future may hold i would like to turn things over to dr. fauci for his update. >> thank you very much, ann. i'm going to give a brief update on the counter-mueasure inform. you may recall i mentioned when we first introduced the topic of vaccine, that very shortly after the sequence was put on a public database, we began a vaccine development program, which was

one of several, supported both by the nih as well as bauder, and even independent individuals we have been involved in collaborating with for a period of time. one of these vaccines i think serves as the prototype of the timing we were talking about you might recall i had mentioned from the type we had available sequence, we would hope to be within clinical trials within two to three months. i have barring any glitches that would be the fastest ever in any vaccine, from the identification of a pathogen to putting it in a human in a phase one trial i'm happy to report to you this afternoon that we are on time at least, and maybe even a little better the gene has been expressed in the platform, in this case a messenger rna. the material has been produced it's been put into mice, and it's not getting ready to go through the regulatory issues of

getting it to go so i would project we would be in a human trial i would say within a month and a half. i had thought maybe cut a week or so off. hopefully no further glitches. the thing we need to understand, because we want to make sure people don't get confused. getting a vaccine into a phase one trial, you need at least three to four months to determine if it's safe and whether it induces the kind of response you would predict would be protective. once you do that, you graduate to a much larger trial the n is 45. when you go to a phase 2, you're talking about hundreds, if not thousands of individuals to determine efficacy that's a trial we have to conduct in those countries, in those areas where there's active transmission that itself, even at rocket speed, would take at least an additional six to eight months

so when you're talking about the availability of a vaccine even to scale it up, you're talking about a year to a year and a half you couldn't be discouraged by that. it is certainly conceivable that this issue with this environments will go well best yond this season it terms would not an important tool 1. >> there are a number of candidates we are now looking at that have shown some suggestion, either in vitro, in an mall model, or empiric trials during the mers outbreak. one of them is rem divisir it's produced by gilead.

there are two trials in china which means we will get an answer whether or not it works or doesn't work, i think, within a reasonable period of time. an identical copy of that trial is being implemented in nebraska with our colleagues in addition to our colleagues in japan i'm optimistic wewill at least get an answer, from the standpoint of intervention from those who are sick hopefully i get the opportunity in the future to continue to update thank you. asper is providing

logistical support to repatriate americans. we are pleased that the passengers from japan have completed their 14-day quarantine and returned to their homes and families safely. passengers evacuated from the "diamond princess" are in the process of complete -- we will continue to monitor, of course and bring any headlines. so far that was alex azar with a number of officials from the cdc and nih, saying the immediate risk here in the u.s. remains low, but it's not a question of if at this point, but when, and how many cases will develop, how many people will be infected, stressing how the c and other deposition have been trying to get ready. let's bring in meg tirrell what else did you pick up, meg >> one of the things that stuck out to me is something that ann shookut from the cdc said.

just 14 cases that have been detected, not among people who were repatriated it's, quote/unquote an accomplishment a lot of people may say we're just not testing enough. the tests criteria are so limited, and our testing capacity has been limited, so that is something people are focusing on very closely the tone you are hearing, though, from this task force and from the cdc, certainly more measured the cdc earlier in the call today from dr. nancy messonier was measured, that certainly started to spook people, potential closing of schools, thinking about working from home, changes we'll have to see in the way hospitals work, but they're trying to make sure people get prepared before we see what will be an inevitable

number of cases. wilf >> meg tirrell, thank you, as always please keep us updated. meantime, let's talk about the market impact. mario gabelli joins us now, from the 2024 top advisers summit in las vegas. great to see you, as always, particularly to get your perspective on a 1,830-day point -- >> well, we have two our dynamics, the ten-year bond, which provides a cushion, but that cushion is only existing if earnings come through, and earnings will be destructed by global supply chain, and notice, wilfred, by the impact of the consumer -- the united states is 70%, listens to the fair and practical approach that the cdc just took, you do have the

american consumer starting to think about what doi do next what happens to earnings as they're released in q1 then do we look forward to -- >> we just lost the connection there with mr. gabelli we will get back to him as soon as we did. mike santoli and barbara duran is here with us. we saw a bit of a pickup. >> yes and know, be good in the sense that you don't want people to feel as if this is a two-way market, but other than the i think we're in the mode of looking for very extreme conditions, get the sense that there's panic at work. it's very similar in my view to the january/february 2018 episode, coming off an all-time high, very comprehensive

trading. we didn't have a macro-fear of on recession watch. >> maybe you were starting to express some worry about the u.s. consumer. >> thank you >> so what were you saying about the economic backdrop and how we're going to be affected by this country >> from my point of view, the consumer will be sensitive and concerned. the question is when does the market discount that with all the quantum trading, it reminds me of 1987, where everyone tries to get out the exit door and it's going to be very narrow. >> is there a sector you don't

think will be affected >> yeah, i agree, but you know when i was probably 13 years old, i learned something very carefully. go to a movie theater, you smell spoke, don't yell fire, go out and get another bag of popcorn in that context i think there will be many that are challenged, but i think many will provide the protective gear, provide the recovery mechani mechanism, and then the question is at what price does this evaporate. so at some point you want to be in the equities market, particularly with the alternatives that are there. wilfred, it's a question of time, and short term you have other mechanisms that will not be tested. >> you say mario, in the short term for broad-market indices,

this is a sell now, ask questions later type of question for you? >> you know, we're talking about technical dynamics when they said we will provide you d. we don't know houses these small businesses in china will finance their -- we don't know what's going to happen in the united states. that's good, it creates uncertainly. that's the way market should funt that's what will create the opportunities. i'm saying be patient. >> you're not buying or selling? you're sort of waiting >> no, no, no, no, no. that's a different issue >> clear it up. >> to the degree that china shut down, they shut down all the movie theaters what will the united states do if cdc has the next step in their protection

one has to be practicic in dealing with these things. the questions is which companies are above their intrinsic value where there's no margin of safety do we want to take a profit? or livenation with $$9 a share and now it's $70 do we care about the companies that provide streaming because of the fact that people will stay at home you know, there's always opportunities, no matter what markets you're looking at. >> one of your stocks that you've been in for a while is viacomcbs, and this debate about whether it's a value trap or undervalued. where do you think the good news will come? >> well, to the degree that we want to look at what may work, and have a double or triple, clearly i have to put viacom

it's got a market cap of $16 billion, debt of $18 billion, but they're selling assets, and i think the new ceo will do a good job do i have a public play where i can make two, three times my money? yes, i do own it and i own the voting stock. >> mario, you mentioned at the top how bond yields have completely collapsed, in part because of the expectations of the fed cutting rates. while i know that a fed rate cut won't, for example, spur production and growth in wuhan, do you think it would need equity markets to recover? >> wilfred, i'm not sure, you know d. we have a flight to safety to the degree that i'm worried about the markets, i'm taking my clients out of equities and will put them in what is available. what is available is the u.s. treasuries if i'm a gloat player, i'm guys

the gumi so -- >> and gold you think has more up side today? >> you know, i -- you're better marking to market on an instant basis, but from the point of view of the mindset of investors looking for alternative ways to protect capital, protect wealth, clearly that's an element that one should have in their portfolio. that's customized for the individual and the organization. >> how are you thinking about the earnings hit that the companies are going to take. do you see this has a first quarter phenomenon how do you think it matches up to the multiple? >> that's a great question from the point of view of earnings, to the point -- global disruption, chinese auto production, for example, is

dropping substantially, and if i'm a vendor to companies in the -- china this year will do about 22 million cars. the united states is only going to produce 16 million. that's an impact on the global supply chain what does that mean for companies? australia? in europe? then they supply parts so unknown, sara, a work in progress more importantly the second and third companies that are leverages. they have never experienced this and independent of -- i'm almost testamented to sing a frank sinatra song "the best is yet to come." particularly when the cdc is already telling you they'll have their tests done, but 1919 and 1937 are the two benchmarks i

use in terms of how disruptive -- >> don't you want to see who wins the election before you make that call >> i'm delighted i hope they spend more on tv broadcasting, because people will be home, and i hope that nbc gets their fair share. >> no, but seriously, now that bernie sanders has the momentum, there's a debate tonight, there's this narrative in the market -- >> listen, the good news is -- look, the politics are politics. we have through many presidents over the last 100 years, some have been good, some have been bad. the u.s. has done well, owning good stocks in a capitalist ink system even with the flaws, but there are always issues that come up, income inequality and student loans, we have to address though, and we will. there's a feeling out there with the coronavirus potentially

weakening the u.s. economy heading into an election where bernie sanders is gaining momentum could decrease president trump as chance of winning, and perhaps that factored into the market action here do you buy that? >> no. i think the economy -- the american consumers is very smart. they understand that if it's an exogenous effect like code vid-19, they're working hard too overcome the free market systems with all the flaws that exist, and we will overcome we will do it. that's where i read the workers in america that i look at and talk to. mark i don't gabelli, thank you. good to hear from you. >> see you in person soon. with the dow now down more than 900 points, we've talk to

jeffrey rosenberg about the stunning move in bonds and where he sees any opportunity. >> i'm just to the points on bonds, bank of america is now down more than 10% in two days, but today down 5.6%. citigroup is close to that so pretty extraordinary two-day levels >> really four days of decline we're starting to pile up here. >> we are. the yield pressure is intense. even at the short end. that means the market right this second is saying rate cuts session lows down 940 points contracts official just saying it's not a matter of if, not when joining is dr. leena wynn, visiting professor at george washington university. she previously served as baltimore health commissioner. thank for you joining us the officials in washington just said the u.s. has had this

w0i7bd to prepare because of the strong measures already taken. what's your assessment >> during the press conference or officials said we have been prepared and we are preparing, and this is what public health is all about local, state officials, they've been preparing for an outbreak for pandemics just like this they do drills on a regular basis for surge capacity, thinking about how can hospitals expand their capacity, how can they be doing contract tracing, and how can they now be moving from not just a containment response, but a community response if and when this spreads to the community we are prepared, and i do thinks it's pont to mention that i

think the u.s. government has had a strong and robust response, but the disease is spreading in spite of it even though the risk for the everyday american right now is low, we do have to preparing for the situation of an outbreak in the u.s. >> doctor, do you feel like it's likely there are cases already circuit lating in the u.s. we are not aware of, i.e. a lack of or inabled to test wide enough so far might be meaning the numbers are underestimated >> it's concern possible we are now getting evidence that patients have mild or no symptoms and could have coronavirus, this new

coronavirus, covid-19, which means they should be spreading it and not i realize it. i'm more worried about other cunning. more than 35 countries and growing have community transmission or possible community transmission, which means not just people are traveling from the epicenter who have covid-19, but also spreading from person to person. i'm even more worried about the undercounting in those places. >> when you say that the u.s. has been preparing and doing drills, what do you mean do we have capacity, for instance, in hospitals and major citying like new york and los angeles, for instance, to accommodate how many people would be affected? do we have the drugs that are necessary? i know there's no actual cure for this, but i'm sure they're sxemplting with all sort of antivirals the supplies is that what you're talking

about? >> what officials do all the time is prepare for cases of outbreaks. they do do drills. they coordinate with their local hospitals. the problem, of course, is this is quickly evolving. we don't yet know how severe this epidemic, if it were to become an outbreak in the u.s., we don't know how severe it will be, how many people it will affect, whether it's something that'srelatively self-contained we are waiting for a vaccine to be developed that could take months or over a year we still have clinical trials just beginning to get launched by treatments. that means the most important thing to do is to prepare and switch not just from containing the outbreak and trying to stop travel, but what do we do when it comes here? how can we help our loved ones and family members to get the best treatment that they need and stay safe? >> dr. wen, thank you so much

for joining us we appreciate it we are at session lows, down 955 points we are monitoring, as we just said, another massive sell-off, bertha coombs is at the nasdaq, but let's get an update >> i think the important thing is last week, what a difference the week makes, almost no new lows now we're seeing more new highs than new lows, including some being names in the do you, 3m on the down side. ford, of course had been weak, and the transports, a number of them like ch robinson. energy stocks as well. occidental, schlumberger, all across the board, all of the big-caps are essentially at 52-week lows banks in correction territory. while they may not be down at

new lows, many are sitting down 11, 12, 13, 14%. gold we've had a ridiculous amount of buying in gold, yet gold has reversed here throughout most of the day it may be that the quantities have sniffed out that the -- guys, back to. >> the dollar is down today, which is a reversal of what we have seen. let's get to bertha coombs at the nasdaq. >> as apple slips to the lows of the day, it's off more than 2% for the year that has dragged the nasdaq composite into the red for the year apple now in correction, and if you take a look at the chip sector, it's also in, amd is now down about 19%

as the cdc has talked about the u.s. preparing people have looked at things like tell conversationing. take a look at teledoc this afternoon, that as surged to a high also vocera, they do the technology to allow mobile health workers to communicate today, also higher and those are among the playing that people are looking at that might see more business as a result of the spread of the coronavirus. over to you. bertha, thanks. let's go to mike santoli for the dashboard. >> pretty grim day, but on that point about glimmers of green some of these idiosyncratic

disruptors, how about virgin galactic only started trading in its current form last october. obviously been a massive surge in the stock, which is in blue what you see in red is the number of accounts at the robin hood free trading app that hold this stock i mean, confide admirabladmirab company discloses the client activity that's about double in two weeks, so clearly it has some appeal to a kind of retail, younger trader right now it's not unique to virgin galactic there are other names. this tells you something.

you did see pockets of that getting frothy, again like january 2018, where we did overshoot to the up side and you did see retail coming in. >> mike, thanks. financials sinking today as bank executives weigh in on the impact goldman sachs, for instance is restricting travel to south korea now and parts of italy wilfred, you were at j.p. morgan's investor conference today, what did you hear >> the big takeaway was no cut in guidance despite the collapse in yields. the ceo said we're not immune, but diversification provides offsets. she added they should being offset a majority of rate pressures in 2020, so much so some tarts are targets were even increased up from 14 billion to 14.2 billion, though for the full year will be closer that last year. chairman and ceo jamie dimon

would note be drawn on the market sell-off overall, but he had this to say about coronavirus. >> it's very hard to tell you, so i don't want to guess we obviously hope it's contained. you know, it's a human charac r how bad is it? how did they get they? they don't know who patient number one was in italy? i had this nightmare that somehow in davos, all of us there got it and all left and spread it. the only good news there is might just kill the elite. [ laughter ] i just don't know. we'll just have to wait. >> the company told me earlier today that any employee recently in italy must work from home two weeks and no further travel to italy without approval

the stock, like all the banks, do you think sharply today, down about 6% or 7% 4% today, as we discussed earlier, bank of america the worst performer, it's often seen as the -- followed by citigroup down 9% over two days. citi has the highest exposure to asia mike, quite impress ivl that they didn't need to cut guidance, a tone coming out of the day was that 2020 will be harder than 2019 jamie dimon says the next decade already harder than the past, but no incremental changes today given a massive collapse in yields. >> so obviously they feel like they can make it up elsewhere. clearly they're not seeing the consumer have many hiccups so it is encouraging, but i think the group is going to trade on the yield back for a while. >> you think the banks deserve to be punished like this, barb

>> i think they're being punished like everything else, and maybe a bit more the yields are reflecting economic uncertainty, but it's also a flight to quality tom lee had an interesting point in the difference between the ten and 30-year. the ten-year is showing short-term disruption, but the 30-year is looking for a bounceback in the n not-too-distant future >> someone mentioned in passing a bit ago, zoom. another one has had a big move, 60% year to date, and really the last is because of the coyne vire video conferencing is their business, they are a leader. this was an ipo just last april, and then came in before the expiration of a lockup, but they are a leader, because it's easy

to deploy, easy to use they're actually expanding the size of the market there, because it's so easy though use. a lot of people who never did it are doing it they have proprietary technology, innovation, and i think they still have a big growth to come the researches were up 100% in december, so i thinking this one you'll continue to see earnings come up. and a rare beneficiary of the fact that people are on lockdown. >> exactly the most clear direct beneficiary. we've seen some people to main buy cases like peloton, but i think zoom has the most clear. we have just 13 1/2 minutes left in the trading day, we are in and out in the market zone commercial-free zone. >> mike santoli is here as always today we also have barbara duran

from bba capital partners as well let's kick it off with bob pisani what analysts are saying about the impact of the coronavirus on earnings season, bob >> in a very rare twist, analysts have actually been ahead of wall street in predicting the impact of the coronavirus on earnings. first quarter estimates for the s&p 500 have already been dropping for some time now now done to just below 3% gain from over 5%, that's a much faster decline than we usually do see several sectors have seen very dramatic declines, so, for example, deep cyclicals like autos, those estimates have fallen 30% capital goods down 13%, larger outbreaks will certainly call these numbers to decline, but they have been moving down estimate guys, back to you. >> bob pisani, thank you barbara, when you anticipate

earnings hits, are there sectors in particular that you're thinking about >> well, i think the obvious ones are anything to do with china. we've had good updates from apple and the whole supply chain there, and who has what exposure i think we still have unknowns there. third, we don't know exactly, you know, how quickly that would get back, but i think we also know different retail, you know, whether it's the starbucks of the world orb the nikes, they have been very clear about the shutdowns. i think in those cases, the market will look through that, and now it's one time, even if it's an extended one time. >> this is going into -- >> i think the market is trying to figure out if we're looking at another half-year in flattish earnings once it's all through the numbers. if you look at something like autos, they have been absolute

blasted. it's not as if it's been a two-day process. it's more about the stuff that's been holding well that have finally suck coupled >> not to mention the first confirmed case in southern germany. we should mention, though, we are just off the lows of the session, still about down 800 points the low was 955. we have 11 minutes left in the concession contessa brewer has more about the casinos. >> as you might expect, not well, casinos with properties in macao are under pressure all off down more than 10%, at the coronavirus spreads, sands is feeling the pinch in

singapore as well, and i want to point out the domestic casinos there. boyd and red rock underperforming. these are highly leveraged equities, largely owned by hedge funds. we may be seeing some panic selling in the wake of the dire warnings on coronavirus, and of course these are all stocks that have seen a big run-up, so there may bess profit-taking protecting that margin of gain in some cases as well. sara >> thank you, contessa >> that's exactly the category i was talking about. it's not as if we just woke up, everybody was at a high three days ago and we have given it back the question is how much of a market has already been curb we can't know that xecht in

retrospect. >> i agree the market is discounting a lot, but how much and how much lower? i think somewhere in here, when you have the "i had a theory" respond from the cdc today, that tells me we're near the bottom that's my gut feel. >> the yields still far outdoes in -- but the pullback we have seen, the s&p is, what, 7.5, 8%? that's not a huge pullback. >> not at all. it's fairly routine if it stops there. that's why i think yields probably need to stop making new lows, so then you can reassess. >> and barb, the cdc headline, that really seemed to get the market selling off hard. they said that americans should be preparing that news conference you just had at 3:00 p.m. eastern with hhs secretary azar and a number of other officials responding to a lot of questions from

reporters about the cdc warning, try been to pare back a bit. >> i had visions of mad max, no one left standing. >> you know, it's hard to imagine the headline in the next few days that would have the reverse effect, that would make people say aha, we have this under control. unlike the trade war stuff, like we have -- >> that hinged on a tweet. >> exactly now it's a matter of make sure the market just overprices a bad situation, and we don't necessarily need the concrete headline to put in some sort of a look. >> wouldn't the good news be out of china we're starting to hear that, and i think everybody is discounting, because we're not sure it's true saying hey, it's not as bad here, but worse everywhere else? >> exactly

course any reagan has more on the results. both of working through multiyear strategies neither have seen big coronavirus impacts yet. let's start with macy's, it beats on earnings, revenue and comp sales, just weeks after it laid out a new three-year strategy, those shares lower by about 6% the ceo expect the current quarter to be the weakest of the year as the new strategy takes hold coronavirus isn't having a big impact yet, and it's not in guidance the ceo -- once everything gets back up and running. home depot did beat estimates for the quarter, experts crediting both their execution of the plan plus a strong

economy helped the u.s. consumer and a stable housing market. on the earnings called, they said while the coyne vire situation remains fluid, all quarter goods from china are essential on shore or on the way, so we feel pretty good about that situation, at least when it comes to them being ability to get the inventory they planned on. back over to you courtney, thank you. as courtney mentioned, home depot turning lower, all 30 stocks are lower american express is the hardest hit. this guess back at the idea that the u.s. consumer is still in good shape we saw that, and the question, barb, is that in jeopardy here, as we start to get warnings from the cdc and potentially more cases in the u.s. of the coronavirus? >> that's an important question. it's going to cause the consumer to pull back everyone is watching the news.

they all understand, and i think it could that's why you've had some one analyst said peloton and roku could be a play, which i think is a bit of a stretch. people have jobs, it's not like jobs will go away anytime soon they may pull back on spending if things do pick up, but we'll just have to wait and see. for now i don't see that impacting the consumer. >> in the market we're in, and home depot is down 1%, which is really not much of anything, and basic basically the best position, both housing exposure, obviously shareholders friendly in terms of dividends and buybacks, it shows you because it's a bit expensive, it's being taken down with everything else. 4 1/2 minutes left in the session. after the bell we'll get quarterly results from virgin galact galactic morgan brennan has the key

things to look forward to. >> it's now dipped into the red, but let's start with what not to watch for in those earnings. comparable estimates, only two wall street analysts actually have estimates ahead of the second earnings report since going public in october. stocks up big more than 80% in three months there has been some testing and production milestones. however, the space tourism business is a $250,000 tickets to the edge of space hasn't actually launched yet. the company reported a net loss on 3.3 million in revenue, so rather than q4 numbers specifically, the focus likely to be on guidance and whether galactic will reopen the reservation book sara >> morgan, thank you morgan brennan on virgin blackive we do have a tweet in from elizabeth warren talking about the president's response to

coronavirus. the trump administration is absolutely bungling the response to the coronavirus, putting our public health and our economy at risk this is why we need a real plan and an adult in charge, she said here is what i think we should be doing. >> quite a long series of tweets. >> and then shed talked about the dow drop it's just the tip of the iceberg. this is where the two key stories kind of get intertwined. the coronavirus and the election and the changing sort of democratic results. >> unexpected story thread for the campaign, in a sense. >> for sure. >> all of a sudden it becomes about executive confidence, as opposed to all the other things. >> mark zandy said this is where it's a risk, that the president's response gets criticiz

criticized. >> >> that's your model for that hurricane katrina and the response to that, and essential. bush's approval ratings really never recovered after that >> but the stock market and economy have been a bigger part of the rhetoric for the president. >> yes we are down about 3%, not far from the session lows, down 850 points, and clearly today another massive mover has been the bond market. rick santelli has a check-in on the bonds. >> we are seeing a bit of a comeback but i mean little the worst other best, depending on your position, performers five-year note yields down on the six.

set below an important september high bertha, four days down for the nasdaq, but that's over 850 points. >> the nasdaq got ready to close below 9,000. apple now in correction, down 12% from the high back in january 29th the chip sector is right there with it. take a look at amd, down 19% from the february 19th all-time high just last week, bob it's been a swift pullback. >> some other big-cap names have dropped into correction territory. visa on the heeled of mastercard, but we're down about 12% from the recent highs. many of the industrial also down

more than 10%. 11% off the recent highs here's the closing bell. we did rally modestly, but not off much essential in the last two days closing just off the close, s&p 500 down 96 points. >> we're now down about 7.5% from all-time highs.

>> the worst back-to-back loss for the markets since february 2018, so a little over two years. it is unusual to see days like this all s&p 500 groups were lower, so a pretty broad selling. every group was lower. that was the consumer staples energy, the hardest hit, groups like materials got more than 4% the transports, key economic sensitive stocks also got hid especially hard. from salesforce, virgin galactic, realreal, and we'll break down the numbers as soon as they cross. >> david zerbos is with us barbara durant is still here first to you, mike, on another pretty broad day of selling? >> very impressive

on the other hand pretty order ly. >> it did mean the bulk of the initial whoosh down was running its course. >> we're about 7.8% off the record high for the s&p 500, about 9% off a record high for the nasdaq, which doesn't -- it seems like a lot, but actually that was last week >> dave zervos, are those enough

for you to be telling clients to buy? >> weave very specific with clients. we like this risk parity trade we have a levered long position in fixed income, which has done great. >> we believe the skew for the distribution in rates, means the likelihood of lower rates is just significantly more than higher rates so that was a very nice free

insurance policy to start the year with, that we've been excited about for our clients the fed would be there, and this event, this coronavirus real will is, as jim bullard put it, kind of a peso problem it's a freak event discount.

we're ready to go. why kind of tell the market we're not to be a slave to you? particularly i think loretta and others, i don't think that helped the market. >> mike, what did you make of the fact that we saw the vix rise again >> it's not really the level that tells you anything, unless it really eastboundably peaks and starts coming down significantly.

>> bob chapek will be the ceo of disney he most recently served as chairman of the parks experiences and -- bob iger will assuming the role of executive chairman and creative endeavorsly providing benefit , at the end of december, now 20-21, iger had extended his contract numbers times in a press release, iger saying the direct-to-consumers businesses and be grace of 21st century fox, he believes it's the optimal time for the transition chapek will be at the helm, he

was most recently running parks and the studio he has been in the various roles. it seems like being selected, because of his extensive leadership, especially most recently expanding the parks division into china, over the -- as well as expanding the disney cruise line business then before that, chapek was president of the formerly disney -- he also ran the walt disney home entertainment division, so experience across these various divisions. notable that iger is stepping down before the official end of his contract disney is going to be talking about this after that, i will be sitting down with bob iger as well as bob chapek in an interview to talk about the transition and what's next for the company.

guys, back to you. >> as you say, it comes as a huge surprise, not least because the contract extension to the end of 2021 wasn't that long ago. all of the interviews you've done with him and other commenters have not alluded to this at all. >> well, look, it was my understanding that chapek as well as kept mayor were considered the two lead keviners of taking on this role, where there are big shoes to fill. they have extensive experience kevin mayer is now running that direct-to-consumer division, which includes disneyplus. bob chapek, when he was given the parks division, that was a test clearly so i think we knew the two gentlemen were in the running to replay bob iger.

i'm less priced that there's an announce me announcement, rather than continuing in the ceo role , if he continues to be involved in the creative leadership indicates to me f. -- through the end of his contract. julia, you mentioned he was chairman of parks, experiences and products what does that mean? what does it say about the direction that the company is going in >> reorganized the different divisions, and they combined the consumer products in the parks division with the idea that parks consumer products, they're all sort of part of the same business, and they're increase get going to be investing in these experiences, whether it's at a disney store or on a cruise

ship so the idea is that it made sense to combines those assets into one also the expansion of the cruise division, so shanghai park is closed right now because of coronavirus, but there's been significant expansion of all of the parts. both anaheim and orlando they launched the "star wars" lands they have been growing a number of different ways to stay in olympics, et cetera. so it's growing per-visitor spending i rememberiers and years ago interviewing dave chapek about his approach to the disney vault. his experience with digital distribution, in the early days. he's had experience with the studio, and in terms of the way

they'll be reaching out to consumers in a digit all way with did is any plus and the way they handle the building of that library. julia, stick with us we're going to continue to discuss this mike going to the share underperformance, outstanding. >> extremely strong. i do think that to take it on face value, it is an intuitive place to perhaps hand things over. >> yeah -- >> and the streaming launch as well. let's bring in jim stewart who's able to join us on the phone he knows disney through and through. jim, what do you make of this news does it come as much of a surprise to you as it does to us >> total surprise. his recent contract was extended to 2021. he was starting to slightly

worrisome signs of not naming an heir apparent, and now suddenly he's announced he's leaving sooner than expected that is a big shock to me. that said, he's leaving at a peak you know, the launch of disney plus, which was just a massive gamble i still don't think people appreciate what it must have taken to get that aircraft carrier to shift its force that way. and, you know, in a way it's a great time for him to leave. nevertheless, i'm really shocked by it. >> i mean, there's a few ceos where it's a really wow headline where he's known much more outside of wall street, you know, bob iger is a huge name. so it's a surprise

they're going to hold this investor webcast today, what do they need to tell investors? what do they need to hear? >> whether there's a new strategic direction or more of a change this one, disney has been doing it very well, as mike said, new highs in the stock so it will be interesting to see if there's a health issue or some personal reason, but if it means taking it a different direction -- >> kind of reminds me of nike in that sense we had the surprise announcement mike parker was going to leave, and, you know, i talked to the company a million times. they said, no, we're coming from a position of strength are strength, he was on the board awhile it kind of where they coexisted

for a while, so i do think it makes sense. also, we're going to hear from him, first of all. maybe he needed to make the move right now. he just wrote a memoir he's going to be 70 next year. it's not weird 15 years as ceo, he might step back, having already planned to leave twice before of the sort of most important questions about for the next 12 to 24 months already settled, as he already put the ship on the right part, so they're not quite as crucial. >> you can certainly make that argument, but i still think that these are very, very uncharted waters, even the strategy has set, the execution is going to be very, very challenging. this is potentially entering

into a technology business,sh with no long-term experience, and they're doing a great job with it so far, but i wouldn't want to say that the challenges are behind them by any means. >> i do think the new ceo has a very solid record. he knows the culture really well, but i suspect investors will be really nervous theme parks is not a big growth industry you know, it's kind of a -- that disney has down there, for many, many years it's nothing like overseeing the whole ship including digital it's a little surprising to me that someone is coming out of theme park area, though the culture of disney is in those parks. >> so if you're just joining us. bob iger is stepping down from his role as ceo, effective

immediately. bob chapek takes over as ceo julia boorstin is here what else can you tell us about the transition, julia? >> reporter: sarah, just a reminder, i will be sitting down with both, that will be coming up at bloapproximately 5:30 p.m just a word about iger and how he's totally transformed disney. he made a number of significant acquisitions, in terms of content, he bought marvel, pixar and lucasfilms, three companies that totally transformed the type of intellectual property that disney had, was also able to exploit across the various platforms. now as well to streaming -- to disney plus, the direct-to-consumer business. he was transformative in the acquisition of fox the 21st century fox assets

ultimately transformative of the size of the studio, its ability to have scale, especially when it comes to streaming with the acquisition of another third of hulu with that fox acquisition, they did launch disney plus earlier this fall great early success, in terms of the transformation, in terms of the intellectual problem, with those three major acquisitions, the acquisition that put disney into another scale, in terms of what it could do, in terms of entertainment production in general. then in terms of going direct to consumer, iger has made a lot of changes at this company. it sounds like from this release, and i'm sure we'll hear about it more, he believed the company was in a place now where it was better to do the transition ahead of sort of a pressing deadline, and to name a successor where he could be there for effectively a year and

a half of oversight of that transition i will say iger has done such a spectacular job with this company and stock price, there were a lot of concerns about who could possibly fill his shoes and who could possibly replace him. every time his contract was renewed, there was speculation that maybe there wasn't someone at the company to take on the royal, so it seems like this announcement a year and a half before his contract expires was intended in a way to sort of quell those concerns and show he would be at the creative helm of the company as he got ch a pek up to speed. >> the stock is coming back a bit. stay with us jim stewart, thank you for joining us we want to bring in michael nathanson who covers the company. first reaction from an analyst, michael, on this surprise announcement >> i would say the timing surprised us we knew bob was going to leave

we didn't think it would happen this quickly the timing is surprising to pick bob, not that surprising he's probably the best qualified to take this job his history in all the divisions that really matter really is very supportive of him taking on that role, and to julia's point before, they had an issue with the previous bake-off, to get this done early with bob still around, i think it's a natural win-win for the company. >> what about the timing of this change in terms of strategy going forward? have the big strategy decisions been answered already in the last couple years? or is this a very difficult time >> i would say it was a difficult time, but disney's strategy is so much better than

anyone in the industry, they showed you last quarter. i think it's a signature that bob iger feels they have set themselves up for success. the heavy lifting is not done, but the blocks are in place. he's not leaving he's going to focus on creative, which is a great strength of his, but i think the company is in better strength than a year or so ago. there's no outstanding questions in terms of development plans. it's clear where they see the future is going. now it's a question of balancing the investment for growth versus the duration of the legacy businesses >> what about the point that jim stewart made, which was interesting, and maybe somewhat surprising to see someone come from the parks division, when the future of this company is digital? >> yeah, but parks -- parks is

where they use data to drive pricing and ngagement, right parks is the only business than this one that are direct to consumer and bob's background is also mature products and in home video. so they have -- parks business is a huge data chest and they're able to use daughters and pricing to drive profitability i don't think it's that crazy. chapek, he's a great executive, and he's had success wherever he's gone. parks is a key driver of disney's business. all the attention espn gets, the park says more valuable business at this point than espn. >> i would make another observation, as much as bob iger has seemed to become indispensable, when he entered as ceo, the reaction was who is

this guy does he have strategic vision? you kind of don't know who you're getting to michael's point, you set the direct-to-consumer pricing, you're in the market for that, to me the bigger questions are on the creative side has marvel maxed out what's the box office expectations very long term? but that would have been there for anybody. and where iger has staked the future of the company? >> the execution risks is how much to spend on disney plus, how do you window content, how do you set pricing there's a ton of execution questions out there. i think chapek -- don't forget the parks are very well run. you have to constantly evolve pricing and cap ex there are elements of his

experience, he's well equipped to understand all these levers you have to pull i'm encouraged i think that was the right hire for disney to maintain their strength park is a strong and important asset. yeah, this is going to be more challenging as time goes on. there's customer churn, pricing questions, but the parks business is not that far out of line from dtc to make it work. >> we will leave it there, mike. thank you so much for joining us fascinating discussion just wanted to point out iger just turned 69 he doesn't look it, certainly doesn't across that way, but when you've been at the helm for as long as he has and you want to frame your legacy, it's slightly off, but it's up 30% over the last two years, he's framing it pretty well

>> the speculation was he always wanted to get out and go into politics. >> maybe there's still dimtime we will come back to discuss that later also, a massive sell-off today more on that to come. but first the salesforce earnings are out josh lipton? >> wilf, another executive shuffle to tell you about. keith block is stepping down as co-ceo over at salesforce. he will remain an adviser to the ceo, but that means mark benoff is chair and sole ceo. keith block saying he's ready for his next chapter, and mark ben ioff saying he's grateful for mark's service to the

company. we spoke to be ♪ ioff about this back in augus 2018, and what he told us at the time, was to divide-and-conquer responsibiliti responsibilities on to the results, 66 cents, the streets was looking for 56 cents. q1 looking for between 70 and 17 they're raising guidance to now between 4.875, and also raising that guidian to 21 and 21.1 billion. recently the story has the acquisitions they've been making, buying a company called velocity i'm sure analysts will have a lot of questions about that, as well as the changes in the c-suite. that call starts at 5:00 p.m.

eastern. >> any reason why? keith block stepping aside and benioff consolidating the role again? >> no, keith block simply saying he's had a fantastic run he was named co-ceo back in the summer of 2018, and he simply says he's ready for his next chapter and will stay close to the company as an adviser. i'm sure the analysts want to hear more when the call kicks off in just about half an hour. >> josh, thanks so much. they can also hear more tonight, jim cramer will sit down with marc benioff at 6:00 p.m and before that julia boorstin will sit down with bob iger and bob chapek nobody takes the job as

co-ceo wanting to remain in that position forever benioff has been out there, writing a book and having a more mr. outside role, so perhaps -- >> this isn't as big a deal for the investors benioff was always calling the shots. he's a founder and ceo, so i think with keith block it was more of an sxemplt it will be interesting to hear why that's not working. disney with huge news, salesforce also with enormous news despite the fears, white house national economic council director larry kudlow said he doesn't expect it to impact moves by the fed >> i don't expect that i'm not hearing that the fed will make any panic moves. look, the markets are obviously reflecting a lot of new fears, no question about it there's a lot of volatility out

there. >> joining us for more, jeff rosenberg from blackrock very good afternoon to you maybe the fed is not going to make any panic moves, but the moves in bond markets does suggests that investors are getting pack nicky, at least a . we have a fear gauge that looks tess relationship between the vix and the ten-year it's at its worst levels since 2011, with the concerns around china, this is a peak in-market fear that's why i think a lot of folks are talking about, you don't want to see the fed panic, seeing a bit of reassurance they'll look through this for the longer term. for longer term, that's actually a good outcome you don't want the fed spending its bullets and not having what's left over for something that's monetary policy is best suited for

you would have to question whether monetary policy is the right response to support the outlook. >> clearly there's a lot of major question marks still, including the big one, which is what does coronavirus look like? at this point, what's going to be the impact on the u.s. economy? >> as this point it's too soon to know, but why we're obviously at this juncture is the spread to other developed economies and moving out from china, moving out from southeast asia. that's the big concern you already have economic slowdowns projected. now it's starting to spread beyond simply supply chain disruptions into the eurozone economy. that's what we're concerned about. when we look at these historic at events, we know they have end points, that they're temporary, and there's a recovery, there's lost growth, lost world growth of course, this time is much

more impactful, relative to, say, sars, the growth of china, the growth of the supply chain so it's a much larger downturn it is a temporary shock, and the ability to come back is still there. >> jeff, you mentioned that your fear is that typically a buy signal >> it's typically a reversal yes, it's too early to say you want to buy here, that's catching a falling knife, but when you look out a bit longer horizon, the peak levels of fear, relative to equity fear and bond market fear are usually not maintained longer term, i think it's important to step back and it may continue, because we don't know what the it spread is, but certainly relative to the historic levels, as fear

recedes and the fundamentals can once again reassert themselves. >> so where are we on the ten-year 134? how low can it go? >> it can go a lot lower that's the good news, is that it can go lower, playing that diversification role in your portfolio. a bit of the bad news to that is the lower it goes, as we saw at the beginning of this year, stocks snapped back after the initial worries, first on iran, then the initial worries bonds never did. bonds have this asymmetry to them the problem on a go-forward basis is you're running out of the capacity you're running our room. not for today, but when you look around the world, part of the reason why the u.s. rates are so low and falling is because the world is looking to the u.s. to provide that hedge we're the only market left that can significantly decline. good news is we can

significantly decline, your bond port 2308 i don't with offset, but the more that the bond portfolio has to do that today for the coronavirus concerns and take on that burden from the rest of the world, which doesn't have that capacity, the less you have for the next crisis that's a concern not for today, but going forward. >> but to that point, jeff, the entire german yield curve is negative again it dipped into that territory yesterday. we just got confirmation for the first case in germany. several cases in italy do you think the eurozone is heading toward a recession what does that mean for the u.s. economy? even if the toricoronavirus doe spread here? >> there's recessionary type of statistics from a quarterly perspective, but again you get the bounceback europe may face that schlock as

well it's an important production region as you point out, as the market well knows, the ability of the tool kit to offset in terms of monetary policy, that's more limited. it pushes the fiscal policy, but the fiscal policy is a bit more delayed in terms of the timelyness of response we'll have to see what kind of fiscal policy response out of europe we can get for support to offset that recessionary shock. >> finally, jeff, just talk about what signals you're seeing in the corporate credit market we did see a big sell-off in junk bonds >> i problem with that, and that would be the topic we discuss here shortly, is that you came into this event with very little margin for error, with regards to valuations. fundamentals are strong. yes they're eroding in terms of

statistics, but that's been an old story. the bigger problem is your valuations were at historical tight levels when you have this kind of shock, there's really no room for the corporate credit markets to absorbit. so almost all of it has been repricing in terms of spread wideni widening that's the risk that you take when you go for the higher income that's being manifest here, a reminder there's a trade-off in portfolio, and you reduce the balance lat properties this isn't the end of the world for the credit markets repricing to better valuations will create better interest points, but yields are still low, so valuation will remain a concern, and you're not seeing any recessionary there as this point? >> no, we're far, far from recessionary signals there this is coming off tight

spreads, which is telling me the opposi opposite perhaps a big too strong relative to where fair value, we would say. so getting a bit of balance and rebalance in terms of valuations on a go-forward base that could be a good thing. this is far from the credit market signaling any recessionary concerns. jeffrey rosenberg, thank you. >> thanks, sara. thanks, wilf meg tirrell has the latest details. >> going to lengths to emphasize the current risk to americans is low. health secretary alex azar saying we have contained this in the united states. 14 cases for two weeks saul, but many in the public health community are questioning if case numbers in the u.s. really are that low, as testing criteria are narrow and limited. where an asian official set it's

no mardy if the coronavirus spreads but when -- she recommended that the virus could create significant disruptions mean while an update on the race for treatments and vaccines. the national institute for allergy is starting a trial of a gilead trial, moderna is expected to of clinical trials, though it may be a year before it's ready a huge last hour in terms of news we just learned that longtime disney ceo is stepping down effective tonight, becoming executive chairman through to the end of 2021. deputy bob chapek has been elevated to the ceo role both executives will appear on cnbc for their first joint interview announcing the

interview, 5:30 p.m. disney has knocked down a -- down around 3% at the lows, noun 2.6% also stepping down the dough-ceo of salesforce, keith block, to help take some of the responsibility of running the company, salesforce down around about 2% in after hours. the biggest news of all, the market in the midst of a significant sell-off nearly 2,000 dow points, and it down more than 7% in the last five days. today not far from the lows of the session. joining us now for more on whether we can expect the sell-off to continue is a global investment strategist. thank you for joining us

you have a good global picture what's your level of concern here about the spread of coronavirus outside of china >> well, for me i would say this is a return to normalcy. i was very surprised until last week we have started about eight start cases in the post-world war ii era typically marks are markets leer act much more sharply than really yesterday the big surprise was why haven't markets sold off more. this is really a return to normalcy in some way, even though it sounds odd to say that but this is really a return to normalcy after what was a very complacent bull market in which stocks had barely moved off their highs, particularly in the united states. >> if the fear that growth in

china will be impacted, or is it the fear that the eurozone and the u.s. are about to be hit directly in terms of coronavirus issues >> i think it's more the latter, at least as far as the reporting suggests, the numb cases in china are dropping, but the fact that this is spreading to outside of china is what's really led to this leg down. but so far what we have seen in financial markets is very much within the range of what we have seen it past global health emergencies, including sars what we have now is still broadly in line with the normal reaction we see in global health emergencies. what about emerging markets? i think of you with that should investors be there or steering clear

>> as emerging markets are concerned, they're already been beaten down, so i think they can keep underperforming a bit, but i think my entire case has been the last decade is where emerging markets had their worst since the 1930s. we are sort of getting ready to sort of re-engage and be more active in the coming few years now, how long this health scare lasts, i don't know. we're all being forced to become health experts, but there is considerable value out there it just is that, like most value in the world, this is not going to work under a new regime takes shape and a very growth-oriented market comes to an end do you think we see more central bank eason and that supports -- >> that's really 9 problem as

far as equities are concerned. there's so much hope out there, yeah, the central banks are there, but yeah, to the extent there's no real inflation out there, which is what the central banks are focused on, we could see more easing. i saw the clip earlier from larry kudlow, and i don't think there's a case for the fed to rush in all because we've had a pretty sharp sell-off for a couple days. once again, they'll be feeding this beast, which is that every time markets sell off some, we panic s. cut interest rates, pump more liquidity, and that's more of a concern for me thank you for joining us. >> good to be back thanks. it's been an action-packed session. up next we'll break down all the earnings, including two ceo departures we'll be right back. apps are used everywhere...

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numbers. >> we're seeing a whipsaw. here's a breakdown of the numbers. net loss for the fourth quarter, adjusted ebitda also negative, 55 million either metric you use represents a wider loss year on year revenue, $529,000. they're not going to say if it's a beat or miss, because there's only two estimates on the street cash and cash equivalents, and what's important is the future outlook. company says it received nearly 8,000 registrations of interest, 7,957 to be exact. registrations of interest in flight reservations over the last 14 months that's more than double the number that the company reported -- last reported back in september of 2019 it's the reason i think -- key reasons why the company is announcing a new initiative, one

small step, which starting tomorrow goes live online, and would take a fully refundable deposit of $1,000 from prospective future flyers and push them to the front of the line when the next ticket sales do in fact become available. that being said, no detailed timing for the next tranche of seats. >> morgan, thank you sounds like stock giving up some of the games, though >> a buying opportunity. >> obviously you're buying this for this enormous potential, you know, knew tourism category. >> it's like a develop stage biotech at this point. if you believe what the company essential promised at the outset, it might have close to

$300 million in ebitda in 2023 if they're doing 27 flights a year and then you're paying 25 times cash flow -- i'm saying it's not trading on fundamentals. it's trading on an idea, a dream, and the entire concept this could be a great new area of travel. coming up tomorrow on "squawk box," the chairman will guest host it's crazy to think this came out of hi -- >> just merged into his company. we have another earnings alert. toll brothers. >> shares down about 8% in after-hours trading after the luxury homebuilder had a slight miss on revenue of 1.3 illion. guidance had been for 45 cents a share. what's the problem

the ceo said in the release revenues were below guidance as some deliveries slipped into our second quarter the guidance for deliveries is between 8500 and 9100 homes and an average price of 800 dhow and 820,000 per home there was no talk at all about the big drop in mortgage rates having any effect on guidance. you have to remember, though, sometimes with the luxury homes, buyers are not quite as sensitive to moves in mortgage rates. other builders have seen big jumps in demand. that's not toll brothers' marked market back to you guys >> they're blaming it on activity that was pushed forward? >> yeah, they don't give any reason as to why they say the deliveries were moved forward, anything like that, just that deliver yes, sir moved into the second quarter,

so we'll see how the second quarter does, of course. >> a miss there for toll brothers all around. up next, trading the sell-off stocks plunging on coronavirus fears. we're going to take a deep dive straight ahead. and at 5:30, the first tv interview since the announcement be sure to catch ilit ve 40 minutes from now. "closing bell" back in a couple minutes. ♪ ♪ ♪

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the dow plunging 879 points today. we've got this major selloff covered from all angles. brian sullivan joins us with more on energy. >> like everything else, sara, it's been a rough go crude oil one point below $50 a barrel, down 15% on the year simply put, all the demand out there, there's concern that china and now maybe europe you're looking at a couple million barrels a day in demand that could be taken off-line and we don't have subsequent supply cuts the saudis by all accounts would like opec to get together next week when they get together and cut output people we talk to, the russians, they're being stubborn they need the money and want to keep pumping the big eight, the exxons, shells, bps, chevron, down 15% this month exxon lost $70 billion in market

cap in just under two months this year. >> wow, brian, thank you very much for that. we'll see you in just a few minutes on "fast money." airlines seeing big downsides. phil lebeau has more. >> we continue to see how far the coronavirus will spread and how much it will hurt demand that's why we take a look at all the major airline stocks, started with american, delta, united, southwest, all under pressure depending on the carrier between 2% and 6%. when you look at delta specific, i want to look at delta because they came out with an announcement, they're atting parts of italy to the waiver cancellation fee liss. if you're scheduled to go there and want to change your reservation because of coronavirus, they will do that will we see that in other parts of europe. american airlines, the stock is trading below where it was when it came out of bankruptcy back in 2013. an all-time low, under $24 a

share. finally take a look at shares of boeing, inching closer to $300 a share, under pressure under continued concerns amongst everybody that, as we see this pullback going on with the market, that it's hitting all the stocks including dow components like boeing guys, back to you. >> phil, thanks. lets get a check on the semis. josh lipton has been tracking that group >> check out the smh, the etf that tracks the chips, now in correction, about 10% below its recent high. names like nvidia, micron, skyworks down. chip investors had been increasingly confident in improving fundamentals, that big cloud companies would spend more on chips this year now with the coronavirus outbreak, this could be a huge blow to demand expectations for those names. back to you. up next, much more on

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we've got quarterly resulting on smile direct club it's sinking after hours

bertha coombs with the numbers. >> sara, it's the top line that missed we city hall $197 million for fourth quarter, the first quarter as a public company compared to an estimate of nearly $200 million, posted a $60 million loss its projection for 2020 of revenues of $1 million to $1.1 million also slightly below estimates. kyle wells spoke to me ahead of the conference call and said part of the issue is they had manufacturing problems they just had to hire rework on some of the aligners, so fewer shipped out. they're in place to address that this year. as far as coronavirus, it did impact results in their hong kong market, but that's very small at the moment. they don't expect that will impact manufacturing they have stockpiled the elements that they need. back over to you >> bertha, thanks so much for that final thoughts, bob iger stepping down as ceo bob chapek will take over. they'll sid down with julia

board stein. bob chapek will report direct tloi bob geiger, offsetting the scale of the announcement. >> iger keeps creative control. >> and more time to focus on that >> it's a little bit of a staged transition as i said before, it was also done when iger was succeeding michael eisner they co-existed for some time. >> 22 months left as executive chairman back to the broader markets, down close to the session lows, 2,000 points or so >> real question going into tomorrow, has the selling been overdone enough, and have you finally gotten the market to a point where it's so stretched. i think we're close. these things never line up perfectly. a lot of indicators say we've done a lot of damage in a short period of time we should see some relief bounce attempts if nothing else >> it's hard to know enough for what when the coronavirus

picture is changing daily. the cdc is telling americans they need to start preparing. >> that's why it's not really a fundamental call it's the market tactics and dynamics that say usually when we get this much selling in this concentrated amount of time, you get some relief from somewhere. >> down 7.8% from the record high. >> crazy day, crazy show >> "fast money" picks up all the coverage right now >> welcome to "fast money" everybody. we're following two major breaking stories at this 5:00 p.m. eastern hour. first, the dow down nearly 2,000 points over the past two sessions next, a bombshell from disney. longtime ceo bob iger is out iger and his replacement, a gentleman named bob chapek will join cnbc in just a matter of minutes live that's a big interview and we have a big show coming your way tonight. your trade on the desk, ti