markets in turmoil after the dow suffers its worse two-day point loss in history. wall street is looking for even more losses today. as investors send mixed messages from washington, d.c. as pandemic concerns spread in the united states. the end of an era at disney. as bob iger retires after nearly 15 years at the helm >> it has been a fun run i still have a job to do

>> what will you do after 2021 >> i'm going to use my imagination. i'm going to go to disneyland. >> it is wednesday, february 26, 2020 "worldwide exchange" begins right now. good morning and welcome to the show, i'm dominic chu in for brian sullivan today wall street is waking up with a black eye after another down day for major averages, the dow is down over 6.5% the worst performance since february 2018. you can see there a huge move. a much worse picture on a points basis. the dow has come off a two-day point loss the dow futures this morning

were positive. a lot of green throughout the course of the session. within the last hour, we took a huge leg lower to the down side. to point out, at the highs of the session and the lows, we have traversed 641 points. to give you an idea of that big swing we've seen the bond market a key focus. record low levels now for the 30-year long bond. the two-year note 1.175% 10-year at 1.34% 1.82 for the 30-year long treasury bond. let's look at markets around the world. matt taylor is in singapore and julianna tatelbaum in london

red seems to be the color of the week so far and it stayed that way in asia? >> absolutely. we should point out things in asia were a little more contained that whan you saw on wall street. australian was down around 2.3%. things were a little more contained. we saw declines in the order of 10%. we continue to see a strengthening of the japanese yen. south korea down 1.3% ahead of a likely interest rate cut of 25 basis points china markets are weaker as well watching hong kong particularly close today. we had the budget unveiled about $15 billion u.s. dollars was the stimulus on the bulk of that, $10,000

u.s. dollars for all permanent residents. not sharing that news. some larger declines of china down back to you. >> the asian market action, what is the early trade looking like in europe. we are seeing a more negative picture as well? >> the european markets are sliding. but we have bounced off the lows of the morning the dax in germany is lower in particular baring the brunt of the selloff. airlines in sharp focus this morning. we heard from lufthansa, which is germany's largest airliner, that they are taking pretty drastic measures to counter act the effects of the coronavirus

they have offered employees unpaid leave and frozen hiring ceos across sectors have been speaking on the back of earnings and flagging that coronavirus will be an impact looking to 2020 they are hesitant to put up a number another negative trading session in europe. yesterday, the stock fell 1.68%. >> thank you for that. rising fears over the virus sending shock waves through wall street as well more than 60% of stocks are now trading in correction territory. defined as being down 10% or more the white house continues to send a message of no panic among

policymakers at least yet. all these regional reports, they are not hearing chatter. there is no evidence yet about supply disruptions >> that was the chief advisor. i have to say, paul, it is probably no surprise the white house is putting its people out there if you try to talk people down is this a panic for the market and global economy right now? >> there are the markets and the global economy the markets are a small part

when you get something like tha this that presents disruption, obviously it is the large listed companies most affected by that. in the wider economy, that is only 25% of the wider economy is made up of large listed companies. the wider economy, generally, speaking, we are not seeing fear or panic i just walked the studio, not a single mask on the streets of london, not one. that is the more calmer response away from the globalized companies. >> you make an excellent point even with the large draw down of global stocks even here in the u.s., this is a global up trend. it does bring to light issues in the marketplace now.

bonds are signaling for some time equities signal a catch up is that how you see it >> bond markets are rigged and manipulated by the sector. this is why the uk yield curve hasn't signaled anything for 60 years. it has not become a global phenomenon the underlying economics going into this situation were okay. the consumer was fairly stable the investor was weak outside of the concern that caused. i think that's probably why the markets are so nervous now if we were to see fear spread to the person in the street, that could potentially weaken the

consumer it has been the consumer that has been the foundation of the growth over the last 18 to 21 months >> consumers in china are certainly not spending they are stuck at home they may be shopping online. it will take away some of that consumer spending power? >> sure. you look at the global gdp number that is a fairly meaningless statistic. china is definitely hit. no question about that as you say, you have a slowdown. i would note spending of on line computer games rose. if you are spending 24 hours at home, you need some kind of escape mechanism so some form of spending benefit. what we are looking at now is how quickly do china supply

chains resume. do we see goods being flown out rather than shipped out. to what extent do we get stimulus coming from the chinese government does that cause a bounce back to later this year? >> thank you for that. we appreciate it coming back on the show here, an end of an era as bob iger is stepping down as ceo what investors need to know coming up. and more on the coronavirus and the money moves you need to make or not make at times of turmoil likehi ts. a very busy hour as "worldwide exchange" returns after this

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welcome back as you can see there for disney, shares down. visa down as well we look towards another down day applied on this stage. another major developing story bob iger is handing over the keys to the magic kingdom. stepping down immediately replaced by the head of global parks. iger will stay on as executive

chairman he has been ceo over 15 years seeing tremendous growth with the acquisitions of pixar, fox and streaming with espn plus and disney plus. iger explained why he's doing it >> we felt we had a great set of assets and strategy. what is next to making sure the creative pipeline is really rich and all of our creative engines are working extremely well i wanted to spend more of my time on that >> thank you for joiningus

bringing it forward as they have not surprising mini stretch. the push whether the new management team there will continue this incredible success after 15 years >> that's a big discontinuing. it is not like bob iger is out of the picture how much should

investors worry about this early on i think they'll settle down a little bit he said that clearly yesterday that means the exciting and fun stuff, boring stuff, the spread sheets will be done by bob chapek it is the more stimulating side with the creative power house. that all happened under him. seeing what kind of company they

will be running and transitioning it out we all know those things don't go according to plan >> in your mind, is chapek the next bob iger. will we see him at the helm for another 15 years >> i don't think we will he bought pixar, lucas films and marvel that transformed disney into this monster of a company that is a preeminent owner of ip and franchises kevin maer was vieing for the job. he is running the streaming portion. he'll be disappointed but he may be one for the future. for here and now with the

business at hands. we won't see that again anytime soon >> we are seeing a graphic there under bob iger thank you for those thoughts on disney, we appreciate it >> still ahead, shares of smiledirect and details of the big stock slide coming up. >> announcer: today's big number, 54%. that's how much the baltic dry index has tumbled. ipngbellweather of the global shpi market has hit a low as the spread of coronavirus pressures global trade ♪

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and we have no way to integrate all that? no... but bdo does. peopopleho k kno knonow o. the futures are relatively flat the s&p is up by two points. the reason we are saying that is because within the last hour, the dow was implied. compared to the last hour. a big v shape move in futures at this time and continue to watch those markets as well. wider than expected fourth quarter loss adjusted. the company announcing co-ceo

stepping down. block was seen as a successor as one stage. shares of smiledirect reporting bigger than expected fourth quarter loss as it spent more money marketing. the company sees are he have news this year of between $1 to $1.1 million shares are down sharply by more than 4%. virginia virgin galactic has been a hot stock as of late. >> do not miss virgin galactic

chairman coming up after the break, united and american express both down double digits you can see there, visa, dow and utx not far behind "worldwide exchange" is back after this robinhood believes now is the time to do money. without the commission fees and account minimums. so, you can start investing wherever you are - even on the bus.

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the dow pointing to flashish type territory well off their lows as you can see. much more coming up as the market tries to get back to solid footing. "worldwide exchange" is back after this ♪ ♪

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futures suggest another challenging day may be ahead a lot of volatility ahead. we've seen big losses and so far gains. and disney announcing a new leader as bob iger steps down. the second half of "worldwide exchange" starts right now welcome back here is how stock few -- futures are looking. taking a turn for the worse. you can see the dow will open just about flat, same for the nasdaq and s&p as well that is a big story. wall street coming off a historic two days of selling the worst performance on a

percentage basis since february 2018 on a point basis, we are down more than 1,900 points on the dow. the worst two-day point loss in history. united health alone has accounted for more than 250 negative dow points in the past two days along that stock down nearly 13% since that span. united health, a key focus here. let's go global. we have matt taylor in singapore and julianna tatelbaum in london matt, we'll start with you >> hi there, dom we'll start with the china markets. china is down by 4.3%. we saw the shanghai composite a little more contained. focusing on hong kong,

about .75% weaker. about $15 billion of u.s. dollars in stimulus being pumped into the economy handing about $1,200 to all permanent residents. the australian and new zealand markets. new zealand off 1.5% australia down 2.3%. south korea off by 1%. tomorrow, we are expecting the bank of korea to cut interest rates. >> julianna tatelbaum joins us live from london with early trade in europe. >> dom, european stocks are sliding for a fifth straight session. we have bounced off the lows the underperformer this morning is the german dax.

this is the main benchmark et. italy, the epicenter outside of the region the ftse mib is currently 0.02% lower but trading on the flat line the outbreak continues to worsen in italy investors focused on that region the most interesting part of the session is travel and leisure down 2%. airlines getting hit hard. lufthansa taking drastic measures to try to counter the negative impact of the coronavirus. that is weighing on the broader airline sector you can see every sector trading here in the red.

>> investors digging through the rubble after two days of intense selling around the world 8 of 11 sectors are negative for the year among those, 52% of all tech companies in the s&p 500 have issued warnings over the coronavirus with 13% of all financial companies doing the same down more than 10% from the 52-week high financials now negative for the year and hoofring above that in so-called negative level joining me on set, marty mosby and lbh manager. larry, we'll start from you.

financials tech and financials lead the way higher, should we be worried about the financials >> financials are really the n canary in the coal mine. it is reflecting we have something else giving us the catalyst about the anxiety and pull back. the financials will begin to show that interest rates still matter that head fake was

fortunate. we saw rates going up and then down seeing recall ib operation seeing the performance gap with those net interest margins of the lending and investor side of the business. is that going to play out as it has in 2020. what you have is a couple of these banks that restructure the balance sheets the duration into the portfolio. their margin is holding up well. these banks aren't getting the credit yet

as they begin to perform better than the rest of the regionals they can cover the stocks. what can they be doing given the pull back. >> when we go through corrections, we wait for it to stop as long as we see red, that's not going to change quickly. it will stabilize. we down graded in december now we are going to the anxiousness about recession and economy. let's pick a spot. what you do is in the first quarter, the universal banks do better we have the trading yesterday. we talk about the trading in the market seeing citigroup and goldman sach we look for regional banks with

heavy discounts. let's look at those that uniquely look in the position and other catalysts that can push the earnings higher >> turning now from financials to the technology sector that is now one of two in selloff t selloff territory. let's talk about whether you are worried about the market carnage? >> when you look at what is going on in the hong kong government just announced today. the governments will do what they can to stimulate the economy and force interest rates up you have to be very cautious on

bonds and technology going with the rates haven't been strong. you have to go with apple's brand franchise and exposure to china plus google probably has two of the best businesses as well in terms of free cash flow. both of those stocks have been regional i think we have a very major buying opportunity at hand if not today, probably within the near future as i think the virus is going to spread first but i think you have to bet it is going to be contained the news in china is very good on the containment of the virus.

>> let's talk about are there places you want to stay away from what are the types of stock you want to avoid? >> i want to avoid stocks with problematic valuations the ubers and lyfts of the world. i think the stocks that i can't make any sense of the multiples. i love the netflix business but i just don't like paying 70, 80, 100 times earnings especially when i can buy the streaming earnings at disney plus at probably a 13 multiple i would stay away from the highest valuation stocks i would go first to apple and google, next facebook. the rest i will leave to others. i think rates are going up >> let's talk about perhaps

relatively more reasonable valuation. you've been a notable share holder of disney late breaking news yesterday, bob iger is going to exit his role as chief being replaced by former head of parks chapek. >> the timing is unfortunate but not anything we can control. it didn't play in to the timing of this decision >> it has been quite a run at the helm for disney for sure 425% return. leading the company to major bu buys what is the future for disney? does disney have a bright future with chapek at the helm?

>> you have to give kudos to the interaction between bob and the board. this is kind of writing the book on an orderly transition i think the market underestimates disney. it has been a very, very powerful hand. he's from the parks. they are a wonderful business. people don't appreciate the technology of the park they have two rides right now, the avatar ride and one of the star wars rides. they are so powerful, they are not even on the fast pass system which tells me the demand to go to these rides and the parks has way more strength than the

market believes. one attraction there, making your own star wars sword, i understand is sold out for the entire month of march. the demand and the chinese government will do what it can to stimulate what it can given the virus threat passes money that will help hong kong business owned by the government you have government partnership in asia helping them i just think this kind of multiple experiencing the financial officer.

you have the operationalnal. it is a wonderful promotion. i have no doubt the board, which is very strong has left the company in wonderful shape >> it sounds to me that you are positive on disney stock >> yes thank you for your thoughts. coming up, the latest on the coronavirus outbreak and how much value has been wiped mark the market take a look at the biggest s

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myww join for free and get three months free! the dow is implied to open down 36 points the s&p up and the nasdaq down at this stage. at one point, we were implied to open down 360 points for the dow. pointing to another sharp selloff with the dow and s&p currently on pace for the worse month since 2019 >> here with more on the numbers and the facts you need to know >> the u.s. stock market plummet has wiped out 1.7 trillion the index down now more than $2 trillion since last wednesday's

high disney's new ceo suggests he's not worried about the impact discussing how disney is handling the outbreak affecting its parks and resorts. >> this is certainly a bump in the road concerning the coronavirus. we'll come through this like any other challenge. that a finity for the brand and story telling will way outlast >> hong kong is setting aside $15 billion to support the economy including loans for small and medium size businesses, tax repayments that's why you heard the last guest say that may help disney in hong kong

>> thank you for that. hong kong exchanges and clearing is warning that the coronavirus has brought renewed uncertainty to its business while reporting the 2019 results. the year marked by political turmoil. emily tan joins us with the ceo of hong kong exchange and clearing over to you. >> reporter: thank you good morning coming to you live from the hong kong stock exchange. nice results coming through in a challenging environment for 2019 despite that, it was a record set of numbers joining me now, the chief executive of hong kong clearing. given the concern from the coronavirus, thank you for joining us >> thank you >> the coronavirus impact on the

economy, your market and company. talk us through what you expect. >> the short term, there are certain physical disruptions people not coming to the office. but the market, the electronic market doesn't require a lot of p emto get together. the market is strong participation is without interruption we are seeing strong market in china and hong kong. we are seeingrecords connect the ipo market in coming months do require more show in investor meetings putting hong kong at the top of the charts.

impacting companies that want to come to the market >> generally speaking. the first half is way more than the second half. maybe 20 to 30% we did see offerings. things will slow down now. this is how it is going to flip into the second half they will do it april or may or june they'll update the numbers there is no real capacity claimed. >> in a failed bid from the

stock exchange last year how are you looking to diversify. we are looking at our own business, which is very strong coming those are the areas where we do not have the capacity today. building in the capacity of how they present ourselves hopefully next time we will succeed. >> we've been speaking with charles li, chief executive of the exchange and clearing. >> thank you still on deck, the moves you need to make in your trading day ahead.

even in the pre-market today as a reminder, can you always watch or listen live and on the go with the cnbc app "worldwide exchange" is back in a moment when you move homes, you move more than just yourself. that's why xfinity has made taking your internet and tv with you a breeze. really? yup. you can transfer your service online in about a minute. you can do that? yeah. and with two-hour service appointment windows, it's all on your schedule. awesome. so while moving may still come with its share of headaches...

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>> welcome back to "worldwide exchange." visa off also 2% pre-market. nike off pre-market. the headlines you need in 60 seconds. tesla and panasonic have agreed to end their solar cell

partnership. the sec is apparently investigating investigating mattel they received a subpoena for documents related to a whistleblower letter they are began looking into the investigation that resulted in a plan to change chief financial officer and restate its earnings shares of salesforce go down block who became co-ceo in 2018 will stay on as an advisor for one year it has been a volatile session so far some 64% of the s&p is in correction mode. down 10% highs hit just a week ago.

joining me now michael pervis. is this it >> i think this is more to come here >> why >> step back a few weeks huge value expansion when you argue the rally, technicals matter a lot. i like to focus on the tech sector that would suggest another 10 to 13% now. it has been a 30-degree up angel

here there were a number of times people could have taken a property why now. we have a pretty good excuse now with the coronavirus making headlines here no one knows what the impact is certainly, it is a great excuse to sell. that reverses itself over the next six months or not you have to step back and say what would the market do if

corona never hit i want to point out, i'm very strong on the market still sticking by that this is an inevitable part of the rally. >> this is a swing of futures. >> i think so. looking at the curve, it is good to suggest that this is not over you could have moves up or down. that is expected if you process the headlines here saying where are the support levels there >> what is your best idea

heading into this day. we will sell into that and use it as opportunities to put on major indices. always appreciate your thoughts. that does it for "worldwide exchange." "squawk box" begins right now. good morning, we are seeing weakness after the dow posted the worst ever two-day point loss we are down triple digits on pandemic fears we'll tell you about what the government is saying about the outbreak >> bob iger passes the porch and virgin galactic numbers

falling. we'll have an exclusive interview with the company chairman it is wednesday, february 24, 2020 "squawk box" begins right now. >> good morning. we are live from the marketsite in times square. i'm becky quick along with joe kernan and andrew ross sorkin. the two-day losses brought to nearly 1,900 points. the largest point loss for two days we have seen in history you are still talking about declines close