good morning it's 8:00 a.m. at disney headquarters in burbank, california it's 11:00 a.m. on wall street and "squawk alley" is live ♪

good wednesday morning welcome to kirstie alley i'm with morgan brennan and jon fortt here at the exchange we will start with the markets after the worst two-day slide for stocks with the dow following 2,000 points just to start the week bob pisani's on the floor watching what's going on, on an important day. >> very different than yesterday. early signs is the turnaround is good boeing, gm, microsoft, even jpmorgan doing well. no big sell-off mid-morning. china rebounding banks doing better still not a big market leader. semis rebounding industrials better energy fading a little bit this has never been a big outperformer at all. where's the bottom it's very simple, it's very unusual to have two days like we saw monday and tuesday 90% downside volume.

that doesn't happen back to back very often usually signs of a bottom, whether they're selling exhaustion or demand is improving. simple supply and demand right now demand seems robust. in terms of what we're doing, i think it's alarming to see a 50-point move prior to the open. this is the european open. we saw that happening. there were discussions about additional breakouts going on in europe this is very fluid now we're just off the high today. these are the s&p futures today. i'm getting indications buyback activity's been very high in the last couple of days. that certainly would be supportive of this rally as far as the correction that we're seeing, i say still pretty modest banks, semi conductors, emerging markets, but that's not dramatic even industrials down 9% some of the faang that are a lot more actively traded in modest

category but facebook, alphabet do not have production in china these are stocks that have done fairly well this year. trading volumes have been tremendous a lot of the exchanges are loving this. options and vix, heaviest trading in vix futures in almost a year and a half. new york stock exchange 57% heavier volume watch the big market makers. they tend to do well in this kind of environment. you can see up 10%, 11% in the last few weeks finally a point about whether we are seeing any activity. there's a lot of stimulus going on there's reports germany may be knocking off the stimulus limits and discussions. reports hong kong will be giving out money to citizens. we're going to see titanic stimulus going on in the next couple months that will offset, at least partly, any of the effects of coronavirus back to you.

>> bob pisani, that's a fantastic overview let's go to charles schwab earnings investors guys, good morning. >> good morning. >> when you think about where stocks might go, and nice rally so far, how useful is it really to look back in 2003, what happened with something like sars considering china's share of global gdp, it's four times higher now back in 2003, the market was trying to recover from the dotcom bust. we're in a very different position now with the ten-plus year bull run. >> yes, i think the analogy from 2003 is the one a lot of investors and traders are going to it's certainly not as relevant for one, because as you noted, the share of gdp is much higher. second, this virus appears to be a lot more contagious than that was.

probably the third and biggest reason why investors don't have a playbook for this, supply chains are far more integrated than they've ever been we have never been through anything like this one of the reasons investors -- especially the first part of this kind of shrugged it off is because throughout this bull market, ten-year bull market, the market's been able to get past the proverbial banana peels, whether it's brexit, trade war ratcheting up, because we had the fed behind it we had easy money. easy money can solve a lot of ills but it cannot necessarily get us through this coronavirus. once we do get through to the other side, perhaps make the rebound a little stronger. >> jeff, is there data you're looking at or looking for to try to figure out how to position yourself as this crisis continues to unfold, plateau, die down >> yes, jon, there's something i'mwatching very closely and that's pollution levels in

china. believe it or not, we're rooting for more pollution in china. here's the reason. this is a supply shock it's not so much about the virus, of course the human toll of that is immeasurable it's the supply shock impact to businesses and what that might mean for earnings. i think maybe the proper historical comparison is march 2011 japan earthquake. 9.0 magnitude earthquake that wiped out a lot of japanese manufacturing, hit supply chains around the world, which were eventually restored but what we had to watch was the restoration of the supply chains now we are hearing from china's ministry of commerce and transportation that businesses are coming back online and there's independent evidence of this from the u.s. consulate in beijing and shanghai and other areas. they're showing air pollution levels are coming back up as non-ferris oil levels are picking back up again. and the idea of the earnings hit from the supply shock may not be as fad as feared. >> jeff, that's an interesting data point

certainly china's in focus for many reasons as we continue to see this coronavirus situation spread to other regions and other countries right now, i think what's so tricky about this is how much uncertainty is out there. at least from a market standpoint what that means in terms of potential business and economic impact longer term you look at apple. they came out with guidance almost as quickly as the company came out with guidance, took the guidance away. how much is actually factored into the market at these levels, especially when you start thinking about earnings into the coming months, coming quarters >> in some sectors i think companies have been a bit more cautious about the outlook some already were suffering from the trade war and relatively weak economic outlook. i think maybe a sector that is vulnerable is tech tech, look 11% earnings growth expected for this year after 1% growth last year, given the slowdown we saw in the economy if we see a similar size slowdown this year, those estimates are vulnerable

certainly earnings probably most vulnerable in any sector of the s&p, given where expectations are now versus say materials or energy where they've already come down quite a bit. so that scenario you have to look at. the good news is production is being restored in a lot of areas. even areas like foxconn coming back, saying they're ramping production back up we are hearing from retailers in china saying they're opening stores there are signs we are seeing of better visibility. but you're right, we don't know the extent of it and those areas most vulnerable are the ones with the higher estimate. >> burns, the ten-year yield now 134 is obviously off the highs of the earlier session is the bond market saying to itself we might see peak and plateau about world outset china but this is now becoming more a story about europe >> the bond market right from the start has taken this a lot more seriously than equity investors have and it typically

works that way in this case the bond market is priced in not just the fact we've had -- the supply chain shocks are really second order shocks i think what the bond market has done a good job and pricing factor is now you have seen this spread to italy and south america and ultimately probably to the united states, there will likely be first order shocks, ie shocks to demand and thus revenues, which is one thing the stock market probably still has not fully priced in. >> finally, jeff, i have a question on valuations totally unscientific but i remember back in 2000 bill gates stepped down as microsoft's ceo in january of 2000 really convenient team market wise we had disney ceo bob iger step down just yesterday, kind of a surprise nike's ceo four months ago might that be a sign valuations are rich when you have these companies that have been on a nice run, ceos in place for a

while saying now is the time to step back? >> that's an interesting observation. although the buyback programs led by those executives maybe aren't showing the same thing. we have to look at the expiration of contracts. clearly they're driving a lot of this turnover. it's an interesting observation. one we will have to see if there's more evidence of. >> we will certainly watch that. jeff, burns, thank you speaking of, disney ceo bob iger has decided to step down from that role, installing the head of parts division bob chapek in his place. julia boorstin sat down with both of them last night and has the highlights. >> bob iger stepping back as ceo of the company, having transformed the company entirely in that role with the acquisitions of marvel and pixar and lucasfilm, the acquisition of fox giving disney massive

scale. iger transitioned the company to focus on streaming and launch disney plus to such early success last year he started the conversation with the board about the potential to pass the baton to ay-to-day leadership and focus on disney content. >> we have a great set of assets and strategy and what's next what's next in my own priorities was make sure the creative pipeline of the company was really rich. all of our creative engines were working extremely well and i wanted to spend more and more of my time on that. >> disney shares are up about 430% as iger took over in 2005 as iger transformed the company more than any of its prior ceos. chapek saying now he wants to continue what iger started >> well, i obviously have huge shoes to fill. bob's legacy in the company is just profound. i think my role is now to take

the strategic pillars that he's so well established over the last 15 years and continue to work on those and implement those in the marketplace, most importantly direct to consumer initiatives. >> now over the next 22 months, iger will focus on the content across disney's various platforms while chapek manages the day-to-day operations and reports directly to iger iger's saying this overlap will be incredibly valuable for the company. >> we've worked together extremely well actually, our senior management team has worked together quite well we know each other well. we get together often. we share a number of issues of our days in terms of running the businesses, a lot of familiarity, a lot of collegiality in terms of confusion, we're not really concerned about that. bob's going to be running the company and running the day-to-day business. >> and the day-to-day business now focused on technology and

integrated across its various divisions. certainly looks very different now than it did back in 2005 when iger took over as ceo from michael eisner you can find my entire interview with bob iger as well as bob chapek, disney's new ceo, on cnbc.com back to you. >> what a great interview it was, julia i would definitely recommend viewers go there and check that out. in the meantime just an observation here, the twinning in that interview. they're both wearing almost the same exact outfit. any insights >> look, the dark suit, white button-down shirt is certainly one of bob iger's uniforms, if you will when they sat down across from me i said, what's thas this pla? and they looked at each other and kind of laughed. it seems like it seems to be the look for the disney ceo job. >> julia boorstin, thank you as we head to break, let's look at the biggest gainers on

the dow this morning dow right now is up 303. led higher by boeing, walgreens, 3m, united tech and apple. and also a first interview on the ceo behind what's so far the stock of the year, virgin galactic, george whitesides will join us. tools, and help from pros. it's almost like you're training me to become an even smarter, stronger investor. exactly. ♪(rocky theme music) fifty-six straight, come on! that's it, left trade right trade. come on another trade, i want to see it! more! ♪ 80s-style training montage? yeah. happens all the time. ♪ ♪wild thing, you make my heart sing.♪

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welcome back to "squawk alley. a report out of the white house a few moments ago that the trump administration is considering appointing a coronavirus star. scott gottlieb among those being considered meantime the coronavirus is expected to dramatically lower containership revenue over the next three months as companies respond to the outbreak. and frank holland explains that and more back at hq. >> coronavirus productions and slowdown concerns are expected to cost shipping containers $1.7 billion during the time period of now and april cargo shippers are on pace to cancel 10% of shipments from asia to the west coast 13% of shipment from asia to northern europe. shares falling by double digits, maersk the largest, saying earnings will decline because of the coronavirus impact shippers of industrial goods like metal and grains, also known as dry bulk shipping,

their shares also falling. and even more dramatically falling, brie bulk is being seen here on the rails in the u.s traffic down over 6% overall shipment of containers following 6% grain shipments plunging by 10%. but there are some positive trends emerging. despite coronavirus impact, retailers earnings are expected to increase year over year april, may and june. but experts say we will not see the full impact of coronavirus on rails and trucking until next month. back over to you >> frank holland, thank you. i will also mention the report we just referenced is coming from politico as well. we will keep our eyes on that. as we head to the break, take a look at the best performers on the s&p so far this morning netflix, nvidia among them ross stores popping on there as well it has been the favorite stock

for millennials but does it belong in your portfolio cethe o of virgin galactic joins us on the other side of this break. a new brn you open account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk

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close in just a moment seema mody has the breakdown of the action overseas. >> stocks in the green here in the u.s. but we're off lows of the day in europe. markets like uk, italy and spain turning positive with spain up about .6%. for the week, europe is still down about 6.8%. so slightly more than the 6.2% loss we're seeing on the s&p 500. it does come as the number of coronavirus cases in europe continues to rise with a virus spreading south in italy and new cases emerging in austria, switzerland, spain and greece france today also confirming its second virus-related death it comes as the world's largest spiritsmakers are warning the virus will hurt profits, a $200 million hit, big events canceled

and tourism not helping. a year-to-date chart will show you stock is down nearly 9%. karl, back to you. >> seema, thank you very much. let's get an update with sue herera back at hg. state prosecutors say columbia gas will plead guilty related to a series of gas line explosions in the suburbs of boston in 2018 one person died but dozens of buildings were completely destroyed. the u.s. army asnounsing an active duty soldier in south korea has tested positive for the new coronavirus. the base commander saying a thorough investigation is under way to contain the infection at least 20 people have died, another 189 have been injured, during three days of clashes in new delhi, india. hindu and muslim protesters have been fighting over a new

citizenship law that speeds up applications for all major faiths in south asia except islam. and prince harry starting his last round of royal duties with a plea for informality. telling an audience in ed inboro's scott lynch to call him harry. after stepping down as a royal, harry will no longer be known as his royal highness but he will still be a prince. you're up to date. that's the news update this hour i will send it back downtown to you. morgan virgin galactic shares are moving back towards the flatline as we speak after reporting a wider loss in the fourth quarter year over year still coming off an amazing run for the stock. up more than 180%, just since the start of the year, despite the broader market health we've seen in recent days. joining us now to discuss in a first seen interview, eric

whitesides, ceo of virgin galactic. >> hi, morgan. >> great to have you here. >> the biggest news was the numbers of registrations, biggest since 2019 refundable $1,000 deposits towards the next tranche of tickets when they become available for sale how many of these nearly 8,000 folks who have said they're interested do you expect to convert over to actual ticket sales? >> well, we will see part of the reason we're doing this is test that basic proposition. we have outside a whole bunch of people that said they want to fly to space and now essentially 600 people who have essentially bought tickets so we're trying to get a sense of how we can move those people through the sales pipeline in one small step people can sign up for today, go to the website and sign up and put down $1,000 you will be at the front of the queue when we open up ticket sales at some point this year. >> are you going to give us some guidance on when that could be >> we will see

we're doing it step by step. this is a first step obviously everyone is interested when will we release the next tranche of tickets we will do it when we think is the right point. we have been at a soft close for almost a year and a half now. >> what will pricing look like i know the first 603 that bought tickets was between $200,000 and $250,000 a ticket. you signaled the next round could be higher when the ticket sales do actually open up. how high are we talking about? >> we will explain our pricing strategy as we go through the year i think you will see higher prices what we'veseen is people reall want to do this so particularly for certain types of special flights, maybe earlier flights or flights with particular people, you can see prices that are three, four, five -- i can even imagine a million dollars for certain very special flights. >> a million dollars >> potentially we will see. we have a whole strategy i think you will see a range of prices as we think through different product levels, just

like you have on something else that could potentially be exciting to people. >> how much of this interest is coming from the u.s. versus abroad and i ask that in part because i know one of the things you talked about on the conference call last night was international expansion. >> yes, this is really exciting to me. i think long term, both richard branson and i are excited about a future in which we have maybe a space port on every continent. wouldn't that be excited we could do something in europe, middle east and asia that's what we're working towards. it will not be tomorrow. this is several years off but we are putting pieces down by signing mus with united arabs and italy. >> how much is hypersonic travel from continent to continent? it is something you and i talked about in the past and something from wall street's perspective longer term has seen maybe as a bigger opportunity beyond space tourism? >> i think it's an interesting building block what we hope to do with a winged vehicle, we're like the only company flying a supersonic

vehicle inside that has wings today. we're not -- we're going to be the only ones for a long time to come and i think we want to integrate our system with wings into national air space systems in other words, we want them to be able to land at airports. that's a really big advantage. then you can hook into local transport systems. so long term i think we want to go to airports but i think it's a nice building block towards that goal. >> would you have to tap into air traffic control? >> but that's the whole point, right? you want to be able to sequence into air traffic control. >> i'm wondering how equipped they are to handle your flight. >> you would slow down a little bit. you don't rocket in at match 5 you can come in, slow down to sub sonic speeds and sequence into normally trafficked routes. >> do you have to sell tickets or is this just word of mouth? >> we have not done any

marketing in our 15-year history. it's all inbound we are excited to have space agents, our space travel agents essentially, and we have a partnership with virs oso network. they will help us but most of it is inbounds today. >> this came up on the call, 460 million on cash on the books dow is up 190% year to date. and it's gone positive in today's session as you're speaking as well the fact there's so much investment interest out there, would you use that opportunity to raise more capital? >> we're like any good business trying to evaluate the situation. right now as you say we're strongly capitalized we have a lot of money on the balance sheet. we're doing good we will see how things go. >> it's interesting. space is hard. human space flight especially hard requires so much investment up front. it takes such a long time. everything has to be perfect i think that's part of the reason we've seen, at least with

virgin galactic, be initially funded by billionaires part of the reason that the company is receiving so much investor attention right now is it really is the only pure play publicly traded human space flight company out there in the market right now how are you i guess balancing those long-term goals and strategies versus the fact you now have to answer to investors on a quarterly basis >> i'm learning as we speak. yesterday was my first earnings call ever. what we need to do basically is execute. what we need to do is communicate, and this is a long-term project, right we have aspirations not just human space flight but as you said, the high-speed point-to-point travel. these are projects that will take a while but they have massive tams as i said on the call yesterday, we hope for long-term investors that are there for the full ride and i think are interested in the big opportunities we're attacking. >> that said, i know it won't surprise you you're being seen as this poster child for froth,

right? does it bother you >> you know, i'm just so proud of what the team has built we have over 700 folks working really hard in new mexico. these are people who have worked super hard and it's nine to see them being rewarded by some recognition that it's a special company. >> i want to get your thoughts, the spread of the coronavirus is certainly center right now from a world perspective, market perspective. it's seeing an increase trigger in fear concern in the broader market and what this could mean for global economic growth when it comes to something like space travel, heaven forbid, worse-case scenario, is it recession proof? >> the interesting thing, morgan, the company's been around long enough we have been through two recessions already so we tested this. the answer is we have very few people drop out. for better or worse, they're high-wealth individuals and sort of protected a bit on that level. the other issue is we're not

bringing a huge amount of capacity into the market we're essentially supply contained. so even the seats we can bring are not that many seats. >> finally, for passengers, i assume the waiver must be 50 pages long. >> everybody will sign a comprehensive terms and conditions along with the final deposit. >> you said the liability, insurance risk for you guys, is limited? >> there's a variety of limitations. our number one focus is a safe operation. but you will have customary conditions. >> finally, could we actually see commercial service start this summer? could it actually happen >> what we're focused on is flying richard branson to space on a commercial flight this year and working hard towards that goal. >> george whiteshides, thank you for joining us stock is now 1 1/2%. apple's annual shareholder meaning is set to kick off at the top of the hour. the stock is now back above correction levels. still a little below $300 a

share because of this morning's rally. tom forte from d.a. davidson and citi's jim subia join us now good morning. >> good morning. >> tom, when you look at where apple is now and how it has performed during these concerns about covid-19, the coronavirus, both on the demand and supply side, what have we learned about how it both holds up under these conditions as a stock and where you think apple is headed? >> sure, so i think apple has actually held up very well and i think that's on the assumption that the coronavirus is more of an epidemic than pandemic and the risk to apple is weak sales to chinese consumers, which was 17% of their sales the last fiscal year and supply chain disruption for the iphone but the big question for the market as it pertains to apple is does the coronavirus become a pandemic and then the risk is much greater including sales softness

on a global basis. >> jim, as you look at the scenarios for apple as the whole world tries to get this coronavirus contained, what are the key points how important are develop conferences to building up both investor and ecosystem demand for a coming iphone? how important are those launch events to doing that as well do you think apple does those things differently is it a problem if they do >> well, it's a very smart and complicated question let me answer it in two parts. first you asked about the developers coming together we're very fortunate in today's technological world, you don't always have to be there in person you can develop code, software and do conference calls and meetings virtually, which make it so that this is not as harsh of an item that may have happened a couple decades ago.

now, you also asked importantly about what are the key identifying factors we're watching it's actually quite clear, you look and do the research and you simply see apple stores are starting to reopen in china. they have over 40 stores there and they were closed and now over half of them, that's right, over 50% are now reopened. they may not be seeing the amount of foot traffic and the long hours as normal but we're seeing the stores are opening and suppliers, whether it be ampenal or jabil, are having workers come back. some of the metrics are over 60% of its workers come back and jabil has seen over 70% of its workers come back. these are positive indications that in the heart of where the issues are, it's potentially getting better and not worse and that's why we're sticking with our buy rating here. >> jim, you mentioned jabil,

that's a good example. they did give us a run rate on capacity but that's something we're not really getting at scale. we're getting people on the roads. we're getting people at work but we're not getting production rates really as a reliable metric >> you're exactly right. at least when we hear of numbers above 50% and you're running your utilization or workers back 50%, it's a positive indication. if the numbers were our factories are still closed and we're assessing the situation and they're still closed and n hours of open for stores or manufacturing, that would be absolutely bad, terrible but the workers are slowly coming back. it's not 100%, but the media is making this very sensationalized as if it's completely closed again, we are seeing the supply chain come back to work gradually. keep in mind, in china you don't have -- >> you are the media at the

moment. >> that's true and we are saying that while we do feel for the people who are infected, and it is quite sad, simply put, there are resolutions where it's getting better and we are seeing that the factory workers are coming back and in the united states, there's things like labor unions and labor laws where people will picket and not want to work as much overtime. in china, the exact opposite a lot of the people in china would actually appreciate additional work hours to earn more money those rates of people coming back are actually going to continue to improve, we believe, and, therefore, make the situation resolved this would be more of a near-term march quarter impact rather than a prolonged structural shift that's why we're keeping our buy rating and $375 target price on apple. >> i want to go back to apple specifically stocks up 3% today still down 8% over the past

week we've seen a major move in this name over the past 12 months it's still up 70% right now. it's almost all completely multiple expansion i know you still have this buy rating on the name but if we do see the ding to earnings, whether it's china or the fact coronavirus is spreading to other regions of the world right now, how sustainable is it to think that it's going to continue to move higher jim, i will put that question to you because i think we just lost tom's feed. >> sounds great. i will answer like this, if we continue to see the production rates and store openings continue to improve, that will tell us that this indeed, the coronavirus is more of a near-term buying opportunity if we look back throughout the history of all of the ways of the sars and other epidemics that have happened, we've seen these have actually been buying

opportunities where people sometimes have a knee-jerk reaction of how bad it is. my heart goes out to those who are very much infected and quarantined and i feel bad for them and their families. but simply medical and technology and science has made it so the world has not ended. and these pullbacks actually present an opportunity. >> all right we will leave it there thank you, jim and thanks to tom forte as well. let's get a check on where we stand across the major averages rally mode today after the deep two-day pullback dow is up 1.3%, or 356 points. similar move higher for the s&p and nasdaq is up 1.7%. "squawk alley" is back after this break when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved.

>> i'm scott wapner. here's what's coming up on the "the halftime report" top of the hour, is it safe to start buying stocks jim cramer says yes, or at least a little bit so we'll ask him where when he joins us for the hour. shocker as disney's ceo bob iger leaves that role. what does it mean for shares in the midst of its worst week in five years and our call of the day zeroing in on nike it just got downgraded if you own it, the investment committee will tell you what to do now all at the top of the hour jon fortt, see you in about 15 and a reminder as we head to

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jaw-dropping, rob the. >>er this big, karl. the top billionaires losing over $40 billion. the tech titans and retailers hardest hit. jeff bezos, amazon owner, is worth about $7 billion on tuesday. he's still worth $121 billion and for the year up $6 billion but this was the biggest lost since last october, you might remember when amazon missed the third quarter. second richest man, bill gates, is down about $2 billion mark zuckerberg dropping $5 billion monday and tuesday he's now negative for the year down $3 billion. so he will be updating his facebook pro fill. but the biggest billionaire loser is lvmh ceo bernard auburnio for the year he's down more than $15 billion. he's lost marc benioff in just two months chinese consumers count for a third of all global luxury

spending and a third of the company's growth is coming from asia aaronio was the second i richest man last year and now trailing bates. and th ortega the sixth richest man down $6 billion for the year and elon musk is worth $4 billion less today than he was on friday as that tesla stock as fallen for the year, elon still up about $13 billion and still on track for that big bonus if he hits it six months from now. >> i'll tell you, jeff bezos selling $4 billion of amazon stock is looking like good timing. >> smart timing on his part. >> robert frank, thank you for that breakdown. let's turn back to the markets. adviser investments jim lowell good morning to you both lou, i'll start with you how are you advising clients

right now, given the drastic moves we've seen in the market the last couple of days? >> well, look, it's clear that this -- the coronavirus issue is likely to extend longer than people had originally thought. but at the end of the day, up until last week, we hadn't really felt the impact of these issues on the market but we're likely to see a pretty large cascade of earnings, downgrades over the next month or so. not just in q1 but q2 as well, cyclical cycles of the market. global cyclicals at the same time i think you want to keep your pencils ready to go and look for opportunities when that is fully priced into the market. >> jim, i'll put the same

question to you especially with so much uncertainty around corona virus and, of course, the presidential elections here in the u.s., which could potentially be adding to the angst for investors as well. >> matter of fact, we are beginning to prepare our clients for what we thought would be a much more volatile year this year that's before we knew anything about corona virus and the fear trade that's been punishing the markets and traders on a day-to-day basis all that said and done, we are fortune builders, not fortune tellers. we'll let the facts, fundamentals, earnings interest rates, economic data come to us. at the same time, we are clearly focused on modeling the kind of risk events we've seen in the past that may give us a clue in terms of the scope, scale and potential toll not just on the markets, but hopefully not but potentially lastingly on the economy as we went our way into the next few weeks, we'll clearly be

knowing a lot more about the spread of the coronavirus and its impact on earnings. >> lew, as we watch europe, south korea, a new case that was just discovered in brazil, how important, in particular, are europe, italy and south korea? how close are you watching those to see how well those countries are able to contain the virus, as you begin to plot out the market impact, say, within the next month or two? >> i think, obviously, you have to watch it closely. i think what you have to watch more closely is, is it spreading, is it continuing to bread and how long will that play out as we look at the way this is likely to play out, you know, we're likely to see that continuation of the virus spreading. and that's, like i said, is going to have an impact on earnings for a lot of these areas of the market. some of that has been priced in, but it hasn't been fully priced

into the market. we're waiting for that opportunity. this isn't going to last forever. and that will, at some point, give us a great opportunity to buy these more cyclical companies at really, really great prices. >> jim, it's a good point. if we can all agree that companies have basically a free pass to issue lower guidance and that we can agree we're going to be seeing a series of earnings, warnings over the next few week s, what is the rush to buy is it a matter of trying to graduate slowly into that process? >> i don't think there's any rush to buy whatsoever if you're a 401(k) investor contributing to your plan on a regular basis you're dollar cost averaging your way through what may be an extended crisis, what may not turn out to be so. make no mistake about it the past history of the market tells us these are precisely the crises moments that may be confounding to traders but precisely the moments that do help long-term investors gain

some significant appreciation. >> lew, where would you be advising customers to be putting money right now? you mentioned the possibility around cyclicals does that make something like small caps more attractive what are you eyeballing? >> on a near-term basis, i think there's certainly areas that are li less immune to some of the areas out there, within tech, software is certainly a place that is less immune. i think also communications services is a good area as well as more domestic or u.s.-based businesses, particularly retailers. you're seeing some good results coming out of the retailers and obviously a little less impacted there. that is a good place to be in the present. but again, looking forward, i agree with jim in that this does create a great long-term

opportunity. if you have any valuation sensitivity to your process, you welcome these types of opportunities. and, again, this does give us an opportunity to value great investments at much, much more favorable prices. >> gentlemen, thank you for joining us today, jim and lew as both the dow and s&p fade some of the gains here, dow up only about 207 points. >> indeed. up 200 we were watching the ten-year suggesting the rally might fade. right after the european close, the german health minister says germany is on the cusp of what he says is a corona epidemic we're back in a moment yes. it's the first word of any new discovery.

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with infrastructure built for the future, the companies of tomorrow can thrive here today. see your future at esd.ny.gov. fang stocks, do you like them or hate them? >> i'm a net seller. >> you're a snet seller? >> other an amazon. >> because >> facebook gets regulated, google will have to go through a bunch of divestitures to avoid regulation and amazon just keeps growing by 25% every year like clock work it's an incredible, incredible business.

>> in case you missed it, social capitalist palihapitiya on ""squawk box"" this morning saying he is a net seller outside of amazon. these comments out of germany has the ten-year back to 1.33. watch the afternoon closely. let's get to the judge. >> carl, thanks so much. after suffering their worst two days in five years, at what point is it okay to buy again? it's 12:00 noon and this is the halftime report. >> stocks rebounding from two days of massive losses, but is it safe to go back into this market yet mad money's jim kramer weighs in 60% of the stocks are in correction, 25% in a bear market the names that should be on your wish list.