really within reach of 30,000 on the dow. so it has been quite a falloff. >> and in tandem with that, yields have been declining we just hit a fresh record low, 1.3% the strong economy doesn't make sense to charlie thanks for watching "power lunch," everyone. >> "closing bell" right now. >> afternoon welcome to the "closing bell," i'm wilfred frost at the stock exchange the stock down 9.5% since monday, energy once again the worst performing sector here on the s&p 500. coronavirus fears continue to spook the market, despite attempts to rally today we're just negative on the s&p 500. >> welcome, everyone i'm sarah eisen. stocks are racing after a new case of coronavirus in the united states. bond yields hitting new lows, and disney is the digest loser on the dow after bob eyinger a

louns lou announced he is stepping down from his ceo role. >> and scott minerd will tell us why he doesn't think investors should be buying just yet. >> we have josh here welcome back to you. interesting dichotomy setting up in the market. the stay-at-home stocks versus the go-outside pelaton was just hit on "power lunch" and netflix, zoom, are all outperforming and the go-out stocks, the restaurants, the ubers are all getting hit. there's the pocket of green there. >> yeah. >> look at live nation they do concerts. >> yeah. >> they're thinking people are not going to go out if and when coronavirus comes here in bigger numbers. >> so the thing with that is that -- the danger with that is buying into a narrative because the narrative could be popular

for two days and then all of a sudden it goes out of favor and people are like what was i thinking why do i own this stock? because i think people are going to sit home? however, i do own zoom and another name that's been ripping, teledoc this is virtual doctors visits i'm inthat and zoom. a lot of meetings that take place in person that require travel probably will get moved to virtual a lot of doctor visits that maybe people don't feel like going somewhere where someone else might be sick that seems to be an emerging theme. so i do think that there are some plays there i just would make sure that you like the stock anyway before you invest in it because, again, that kind of thing could get wiped away. >> pelaton costs $2,000. it doesn't feel like something you would do immediately because you're not going to the gym one particular week. >> speak for yourself. >> i already have one, but that wasn't because of the coronavirus. anyway, let's move on to the

latest with the coronavirus, which continues to pressure markets. mike is having a look at the broader market impact. meg has the latest on treatments and steve liesman is diving into what alternative data is signaling about china's economy. let's kick things off. >> thank you very much we had a rally this morning, a bounce that did fizzle was the bond market didn't really cooperate. sometimes in the market it's more the second or third mouse that gets the cheese just to draw this current episode in parallel to some degree with what happened here in the early part of 2018, a month or two ago we were talking a lot about a lot of the indicators that said the market was getting stretched and being overvalued in the same way it was in january of 2018 what you did see is from an all-time high, very rapid dissent. it went down about 10%, 11%, and

we had choppy rally attempts you did kind of have to play around for a while in this anxious pattern. here we are basically in that kind of vertical slope down at this point we don't know how this is going to go. we know the news flow is different and the backdrop is somewhat different in terms of bond yields and everything else. what's not different is that the market tends to metabolize a shock, correction and recovery so i would look for something like the quick silver rally attempts that may or may not hold what has it done to valuations it's taken it from an excessive place to a somewhat less excessive place. this is a forward pe on the s&p 500. you're back down below 18. 17 is the five-year average or so it's kind of your central tendency for this bull market, in this stage of the bull market now, obviously the e right now, the forward earnings probably have some vulnerability of going down, which means it's less cheap than it looks right now.

the market has skimmed some of the froth with these valuations, guys. >> thank you >> i'm hoping that given the current weights in the s&p 500, the e doesn't have that much of a revision to the downside if thrp 15 years ago when oil was almost 20% of the market and financials are much bigger and industrials are much bigger, i think that would be more true. right now, health care, discretionary, financial and tech is almost the whole ball game. >> well, tech and discretionary are feeling the coronavirus impact. >> everyone is. >> that's where the earnings come down. >> yes, but i don't think they would feel it to the same extent as something that's more cyclical at least that's what i would hope but of course, within discretionary you have disney. like you are going to have companies that are affected. but i'm not sure if it's the same as it would have been ten years ago, 15 years ago, because the industry weightings have changed so much. >> we'll turn now to the latest with coronavirus and the business impact that we're

hearing. today mining company rio tinto warning it could create challenging conditions in the next six months. and diageo says they're expecting the virus to create significant skrupgzs and hit profits for 2020 asia pacific key region for the company. and google and microsoft are reportedly insisting production to southeast asia from china nestle announcing it is asking employees not to travel for business so far we know there have been more than 2,700 deaths meg terrell has the latest on possible treatments. what have you learned? >> we know the most a vansed potential treatment is from gilead sciences. it's strting a clinical trial in the u.s. the world health organization saying earlier this week that's the only drug so far that appears to have promise against

the novel coronavirus. but we've so seen shares of vir soar this week on news of efforts to develop a new medicine the company has isolated antibodies from survivors of sars and is testing whether they work against this new coronavirus. efforts to develop new antibodies are also under way. and moderna soaring this week on news it delivered its first batch to the nih to begin human trials still it would be at least a year before the vaccine could be deployed broadly sarah. >> i'm just going to follow up and ask you a different question do we have any idea so far about how the europeans are planning to respond to the outbreaks they've seen and whether it might be slightly different, either because of their political intentions or just their political abilities to have china so quickly and sort of ruthlessly shut down travel in and out of a major city >> that's a great question a lot of folks have been

wondering if other countries can do what china was done, as the world health organization seems to be recommending in some ways. different european countries appear to be responding in different ways germany today said that it believes they are on the cusp of its own epidemic because they're having chains of transmission we cannot trace so testing is different in different countries as well. here in the united states people don't think we're testing enough so we are going to start seeing how western countries are responding to this probably not as strongly as we saw in china, wilf >> there's a spanish resort on lockdown 1,000 people in there. >> holiday from hell, people are saying perhaps not as bad as if you are on the diamond princess. >> alex sazar is asking congress for $2.5 billion to fight the coronavirus outbreak but anthony fauci, the snshl institute of diseases director says that may not be enough. listen. >> when the secretary was

talking about the $2.5 billion, that was really a start, a downpayment. we need that now and hopefully we'll get it but i think in the future as we get into the next fiscal year, there certainly will be additional requirements. >> aimen jabbers joins us with more from the white house and the white house response ahead of the president speaking tonight. >> yeah, that's right. and white house officials here privately acknowledge that there will need to be more than $2.5 billion, which is what their official request of congress is for coronavirus funding. they suggest it will ultimately being a lot more than that senator schumer has proposed $8.5 billion in coronavirus spending meanwhile, we're learning a lot more now about the president's anger at that cdc briefing that we saw yesterday that sort of led to the sell-off we saw late in the day yesterday in the markets i'm told that the president was angry about that briefing, his anger was focused on the doctor from the cdc who suggested it wasn't a matter of if the coronavirus comes to the united

states, but when the coronavirus comes to the united states i'm told the president feels that she shouldn't be making predictions like that. it's okay to make emergency preparations, i'm told the president believes, but not necessarily to make predictions that are negative in that way. the president frustrated, not expected to take any particular action about that. we'll wait and see what he says at 6:00 p.m. we are expecting, guys, he will take questions at that press availability at 6:00 p.m. but not a whole lot of details yet on the white house, on the format, where and who will be with him. >> thank you very much for that. now, china isn't showing any signs of a rebound in production amid the coronavirus outbreak. steve liesman updates some of the alternative data that we've been watching. >> economists in the u.s. are following a series of alternative real time data trackers inside china that show the country is just not getting back to work as quickly as had been hoped here's one example of that traffic congestion u get this in real time after the internet and in beijing it's running 20% to

60% below 2019 averages. it's a sign that economic activity is running well below normal here's another one, coal consumption not even close to where it usually is. a big deal on a country that gets 60% of its power from coal. all of this leaning against hopes that china would be getting back to work by the end of this month. jpmorgan this morning slashing its growth forecast for the first quarter in china, looking for a 4% decline that compares with the previous forecast of 1% growth it sees a stronger bounce back in the second quarter, and that, folks, is where the rub is do we get the second quarter rebound as people are forecasting? >> that's the biggest question like what sales and revenues and economic activity are lost forever, and what returns and what gets replaced and would have happened anyway, and just happens on a delay >> and it gets to the economic cycle question of whether this looked v shape or u shape.

what's the consensus at this point? >> i don't quite know how to put a letter into it because i think what happens is this data that i'm showing you certainly delays that other side of the v and from a quarterly accounting standpoint, it can happen any time in the second quarter and it can still register up until, say, the second month in the quarter and you still get it otherwise, it becomes a third quarter thing. and i think josh's comment is very important, because certain service expenditures, like for example, a trip you were going to take to china, let's say you were going to do one a year and you may not do it tall, but you're unlikely to take two because of it. certain other services you will never do again because you've just lost the time. >> steve, thanks very much for that josh, to pivot back to what we were discussing, if other countries respond to it slightly differently, we know more about the virus now. we know that the death rate, while terrible to comprehend, is pretty low in percentages. if other countries respond to it differently, does it have to

have the same level of economic impact as it is clearly having on china >> well, so we don't really know what the economic impact will be here we know what corporate ceos and cfos are telling us and we don't know how much of that is just, hey, let me take this opportunity to take guidance down versus oh, my god, there's no way we're going to make the number that we talked about two weeks ago. it's a great question. i think it's the second biggest question that the market has to wrestle with after what are the humanitarian issues involved and i wish i had something more profound to say. but i think we'll be learning more every day that goes by. >> we've got 47 minutes left of the session. we are down 38 points or so on the dow. so a little in the red but off the lows, which was down close to 200 points. still ahead, shares of papa john's plunging despite the strong earnings. we'll speak with ceo rob lynch about the results and to discuss also the impact coronavirus could have on his business >> and later, former president

jean-claude trichet tells us whether central banks would be able to stop a global recession if one happens because of the coronavirus. we'll be right back. g your f... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. ♪ ♪ don't just plan to retire. plan to live. an annuity helps cover your about the results and to discuss so you're free to live the life you want.

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let's check on some individual market movers jm smucker saw strong sales in peanut butter and coffee business, which offset declines it saw in its pet food segment the stock up 2%. announcing they will add a beyond meat sandwich in canada at starbucks it will launch on march 3rd -- wait, beyond meat and they're putting an egg and cheese in it. that surely defeats -- >> well, there's no meat it's not fully vegan. >> who presumably are the main buyers. >> you don't have be a vegan to enjoy the delicious taste and texture of beyond meat >> that's true, but if you're really targeting max sales, wouldn't you want to appeal to full vegans in offering this product? >> i'm thinking of the taste

>> a vegan doesn't have a choice here >> a vegan can just not eat it >> right >> it can be vegetarian. >> i think it was a legitimate point. >> shares of papa john's on the move today the company noting that it is susceptible to coronavirus risk and have closed approximately 50 franchise stores in china. the stock is down about 10%. the company is saying although the impact of these stores is not currently material to our results of our operations, at this point in time, there is significant uncertainty relating to the potential effect of coronavirus on our business. joining us now in an exclusive interview is papa john's ceo rob lynch. good to see you. >> good to see you. >> on the stock price, are you surprised to see that the stock moved given that you've returned to positive sales? >> i'm extremely surprised at the results we've seen in the market today we approached this earnings announcement very positively we've now delivered two

consecutive quarters of same-store comp sales. we significantly beat earnings and sales forecasts and we've guided very aggressively and very positively, looking out 2020 so we feel like our business is in great shape and we're in full turnaround mode and we're making a lot of progress against core initiatives. >> the coronavirus, clearly top of mind for investors. i think you have about 200 stores in china. tell us what you're seeing there in terms of business and whether you can get the stores open again and what's happening with sales. >> yeah, these 50 restaurants are temporarily closed a lot of times they close as a result of, you know, the government shutdown of specific areas and facilities, a lot of our restaurants in that country are in shopping malls and they've taken precautionary measures to close the shopping malls. but our international business

is incredibly important to us. we have a lot of white space for development there. china is a big part of that plan and china was performing very well until this situation. but right now we're monitoring it closely we've got leaders and franchisees in the country reporting out to us daily on the situation there. and, you know, our primary concern right now is making sure that we are helping the franchisees, their team members and the communities that they serve. >> what about back home, rob when you see an outbreak like this, even though of course thankfully it's not spread widely in the u.s., do you see people having a higher propensity to order food online rather than go out to restaurants? >> you know, we really haven't seen a fundamental change in our business obviously, we are very happy with our business results and we haven't seen any negative

impact so there really hasn't been any change in behavior >> what do you anticipate as it relates to the u.s. in terms of ordering online and shifts in consumer behavior? what do we typically see when something like this happens? >> you know, right now we're not seeing any change. historically i don't know that we've dealt with these situations a lot in the past obviously there was sars and ebola from years ago, but the reality is that those never really impacted the united states so we haven't seen a big impact from these types of situations. >> rob, it's josh brown. would you ever consider completely outsourcing all of your delivery to either door dash, uber eats, grubhub, one of the delivery companies what is the economic difference to you versus somebody ordering from one of those services versus calling or using the app direct to papa john's? >> you know, we've made a strategic decision to establish

strong partnerships with all of the major aggregators. we have national relationships and contracts that support both of our businesses, and as a result of those partnerships, we're seeing about the same level of profitability from our aggregator deliveries as we do from our organic deliveries. so we think there's a good balance. we like having an internal delivery capability to support our restaurants. but we're absolutely leveraging the partnerships to make us more efficient, especially in our highest capacity marketplaces. >> that said, rob, to what extent is it a big risk, the more you integrate with this world, that if people start to open that app, even if it was with the original intention to order your pizza, that they get distracted by the other options that are available on those platforms? >> you know, we want to meet our

customers in every location and every opportunity that we have to reach them. and if that becomes a marketplace, then we want to be there. and so far we've seen a lot of growth there and actually we've seen a lot of incremental customers. so we're reaching customers that we weren't reaching through our organic channels so it's very been very incremental and we've seen the customer service, you know, really replicate what we do internally so we've been happy with the partnership. >> so rob, you're what, more than a year out from some of the drastic changes that this company has made how much, if at all, do you think that the problems of the founder are still plaguing your business and your brand, the racial slurs, the blaming it on the nfl viewership and the whole debacle that led to falling sales for all of last year >> you know, our system is recovering and we're recovering because we're focused on growth and

innovation we've launched two new products in the last six months i've been with the company now six months and we've shifted to an innovation mindset. and the two products we've launched, garlic parmesan crunch and we've been happy with the change we've also evolving our culture and make sure we're the kind of company that our employees and customers can be proud to be a part of. we've got great diversity. >> do you think it's still hurting the brand perception, though >> you know, we've definitely seen a turnaround. we think our partnership with shaquille has helped us. and then a lot of our efforts in our communities in which we operate around diversity and inclusion have really helped as well so we're definitely -- we definitely believe that we're turning a corner. >> rob lynch, thank you for joining us. >> thank you very much >> papa john's

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street disney shares are under pressure today after the company announced ceo bob iger is stepping down effective immediately and will assume the role of executive chairman disney naming bob chapek who has been chairman of disney parks. >> and here's wall street's reaction to the change they say while chapek has very big shoes to fill, we believe he is the right man for the group citi said investors may see today's a nountmeannouncement and the fact that bob iger believes it's a full-time job to sort out the assets could say it's a bigger mess than we thought. either way, massive story. it took us all by surprise when it hit yesterday i get all the coverage throughout the day, david clearly saying that he spoke to them and doesn't want to be ceo

anymore. still slightly confusing, not in sync with earnings on a day when you're down 1,000 points over two days. >> you're a sharld holder, right, josh? >> i am a shareholder. part of me feels like i'm making this up now because they made the announcement but i listened to him talk with bill simmons on the podcast, which millions of people did, and i think everyone that listened to that might have come away thinking this guy is really talking about his career with disney in the past tense, what is going on with that? so maybe i'm just like overemphasizing that in my mind and thinking that i knew that at the time he interviewed like the star of "homeland" the week before if you had listened to this, you would be like this guy seems like he's nostalgic about the past and not talking much about the future and the one thing i would say that gives me a little bit of comfort, it's not like he's parachuting out of there

he's just not going to run the parks and chapak ran the parks and citi reiterated their target, which is $161. if the stock were to trade to $161, you wouldn't care who the ceo was. >> either way, it's bold of him to sit down yesterday, because when you meds ur his tenure he lost quite a few percentage points on his shareholder return because of the market sell-off monday and tuesday. >> but he's still chairman >> and it was a broader sell-off disney has to deal with coronavirus and it's a risk for business, including the parks. >> right, you're actually right. the parks are 45% of disney's net income and one of the fastest-growing parts of the company over the last five years and i think chapek gets a lot of credit for that. but the parks will be challenged you can rest assured the closers in both shanghai and hong kong will be a challenge for them

and who knows what's going to happen here? and they're in the cruise business like all of these things are not great. movie theatre business it's going to be tough. >> down 3% today we've got just under 30 minutes, 29 minutes left of the session here are the key things driving. a new case of coronavirus in the u.s. bond yields are hitting new lows and disney, the biggest loser on the dow on news of the ceo change we just discussed. time now to get a cnbc news update with sue herera. >> here's what's happening at this hour. in south carolina the democratic presidential candidates starting their post-debate campaigning at a breakfast held by reverend al sharpton's national action network. civil rights a key topic >> racism is ramp pant, it's rampant in-housing, health care, in education and financial services and my promise to you is that instead of dividing the american people up, which is

what trump is doing, we're going to bring people together we're going to end every form of ugly racism that exists in this country. >> a lawyer for julian a sang arguing at an extradition hearing that the wikileaks founder should not be sent to mark that's because a treaty bans extradition for political offenses u.s. lars say he's just ab ordinary criminal facing charges of espionage. >> and adolescents who are bullied about their weight are more likely to abuse drugs and alcohol. this is according to a new study from the university of connecticut. researchers surveyed 1300 middle schoolers and found those who faced frequent bullying have higher rates of alcohol and marijuana use. you are up to date that's the news update this hour i'll send it back downtown to you. >> thank you so much let's get over to mike for the next installment of the dashboard. hey, mike. >> one feature of this pullback in the market is that the

favorite pet stocks have the market have led the way, the big tech stocks that have been in the fore for a while these are some what would have been called blue chip names at one point. gm, macy's, american airlines, vie viacom i picked four and you see what they've done over the past year. take a look at their valuations right now. if the current estimates for 2020 earnings on these companies is anything close to being a reality, you see where you can get them for you can get them all for under six times earnings by the way, they're about 12% of the s&p 500 trades at below 10 or 11 times earnings so you really do have a lot of cheap stocks why is that? disrupted, disrupted, disrupted. that's the market's evaluation when it comes to airlines, we know the travel restrictions and the demand, but also do you want to buy cheap stocks of cyclical

companies, that's the other question right now i think it's a test, just exactly how much do you like value and how contrarian are you. because if these things -- like i said, if the earnings power is not completely going away any time soon, one would have to think they're surfacing in a lot of value screens it takes a lot of courage because it's hard to see the long-term business model holding up. >> we'll see you again shortly still to come, guggenheim scott minerd, find out how much further he thinks the market will fall. >> a quick check on bonds. tone-year treasury yield hitting a new record low there continues to be vor rashs demand the stock has come back a little bit with it. we'll be right back. do you have concerns about mild memory loss related to aging? >> announcer: the bond report is sponsored by - aisle in stores.

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welcome back we've got about 23 minutes left in the session the dow is down about a third of one percent and it's actually

dropped more than 6% over the last two sessions. it had bounced earlier, now in the red. joining us from los angeles, the chief market strategist and senior managing director great to see you as always >> thank you. >> you pretty much called this you called for a pullback in the market summarize for us when you did that and why i guess you called for a pullback not really because of coronavirus fears, no. >> if it wasn't coronavirus, it would have been something else this is pretty bad by definition corrections kneel natural, normal and healthy until you're in one. what makes people sell to the degree that they did was there's too much enthusiasm going into the peak the way that the stocks were -- the stock market was acting in the mega cap stocks, which was bonkers, which is a technical term so so january 20th we felt like there was going to be a 5% to 10% correction concentrated on the biggest names, and the coronavirus hit the next week, which brings into play that this

is a fundamental dynamic that could weaken the global economy. >> so you expected a 5% to 10% correction that's sort of what we've gotten already in just like four days so what now? >> it's really interesting so there's three reasons that we think you're making a temporary low. we call it a whoosh low, another technical term so what you get is the human nature starts to fare that bernie sanders is going to become the president and that everybody is going to have coronavirus. i had a cough on a plane going from new york to boston and you would have thought that i had a hazmat suit on or i needed one everybody is scared. that creates the kind often thumping the last time you saw that kind of thumping was august of 2015 in a two-day thumping of 6%. august of 2015 and then again in february of 2018, following both of those occurrences, after the whoosh, you got a pretty nice pop over the next few weeks. and then the reality of that fundamental deterioration that

brings in soft data brings you back to the low. that's when you want to be a buyer, because that's when you really start to engage expectations for monetary stimulus and i think that is going to be so extraordinary, because this is such a global fear, and really truly a business shutdown. >> tony, it's josh brown nobody i would rather hear from today than you. >> thanks. >> so i wanted to throw this at you. i feel very much like we're torn between two things and it's really tough to get really, really excited about a face-ripping rally or to get really scared at this moment in time and here is why. real quick here on the internals. two weeks ago 25% of the s&p 500 had a 14-day rsi above 70 or overbought now it's 0.5% of the s&p there are no overbought stocks the other thing is 90% of stocks

right now in the s&p are at ten-day lows if you look at history, that's the lowest it gets we are as overdo for a bounce as i've ever seen us. however, we're still above the 200 today. so you can't exactly say we've seen the worst because we clearly have not so what am i to make of the internals versus the technicals? which camp do you fall on? >> that's a great point. so this morning the title of our note was post-whoosh, pop and then flop. you get an oversold bounce but it gets faded because not everybody got a chance in two days to sell out the intermediate term indicators -- the short-term once are ridiculously oversold but the intermediate term indicators are still at best neutral. what gets them to a position that creates your next sustainable like higher is you get oversold

that takes a little bit of time. that takes a rally off of the temporary low that we have and then everybody gets really scared when you test that low because the fundamental data is getting worse. and that's when the monetary stimulus makes you want to look through it and buy into that and if you don't believe it -- josh, you've been doing this a long time. we both know nobody wants to buy -- >> what does 25 basis points do to counter a global recession driven by economies being shut down from japan to china to europe and possibly the united states >> i don't think it's going to be 25 basis points they're freaking out because inflation can't get above 1.6% before anything is shut down with a global virus. that was when you had the trade barriers getting fixed they're freaking out that inflation is too low and they can't fix it they're going to throw everything at the market that they can to not become europe. and the reason that's important is there's so much fixed rate long-term debt in the u.s. that

can be re-fied as it goes lower. that is different than most of the overseas countries that's why the u.s., since i've been in this business, 35 years, every time i hear the fed is pushing on a string and it's not, because i have too much debt and if you lower the interest rate enough, i will refinance that debt and take some equity out of my house. >> we're going to have to leave it there thanks, tony be sure to tune into our special tonight, markets in turmoil. it costs at 6:00 p.m. eastern time it will be hosted by tyler math son, along with jim cramer the president is also going to be speak to go the nation. >> up next, we will have your last chance trade. ♪ yes i'm stuck in the middle with you, ♪

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last chance trade. >> i just want to point out jpmorgan i own the stock from under $100. this is a name that i think is

the best run bank in the world i think if any bank is going to get through what is to come in the economy, it's going to be jpmorgan typically they get through these crises with flying colors. stock is down 12 straight points on nothing company specific. i acknowledge the fact they may be susceptible so whatever ends up happening in the economy. but i think we've got the wherewithal to get through it and i'm confident this will be one of the better plays when the dust settles so i would be looking at it right now if i weren't in it. >> apple ceo tim cook addressing the coronavirus at the company's annual shareholder meeting that story coming up in the market zone next we ended up creating, as you all know, so much more. peloton is truly a category of one and we're just getting started. now, let's do this.

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under ten minutes left of trade. welcome to the cnbc "closing bell" market zone, commercial-free coverage of all the action going into the close. >> mike santoli is with us to break down the crucial moments of the trading day and josh brown we mains with us as well, with nine minutes left. we're down two-tenths of a percent on a s&p 500 stocks falling now today as we just said, having had two major days of losses the dow was up more than 460 points earlier in the session. currently, though, down by about 60 mike, what do you make of the fact that it tried to have that rebound and has failed to hold onto the gains >> not that uncommon to have this kind of reflex bounce the market looked to the bond market to see if this was something that really was a change in complexion in terms of

what we were trying to price in. yields slipped and market followed right along so as josh was saying, we have all the pre-conditions to have this sort of washout readings in the market, short-term basis and we also have the recognition that most of the big upside moves in this market have happened when something really scary everyone was consumed with didn't happen. and then you had to be brave and buy. we just have no way to know. we've been saturated in this story long enough for that to be the case just yet. >> apple ceo tim cook addressing the coronavirus at the company's annual shareholder meeting today. josh lipton is in cupertino with more >> at the shareholder meeting tim cook did address the coronavirus briefly. he said it was a challenge and said it does remain dynamic. we know apple has opened 34 of 42 of its stores, but with limited hours. the stock is up nearly 70% over

the last few months and up 10% from the recent high the vote went as planned back to you. >> josh, thank you so much for that other josh here with us, apple clearly has held onto some of its bounce in gains. it had quite a hefty tumble. >> i just feel that we're still in the phase where we're asking ourselves for how long will this crimp sales of certain products and are certain products more likely to be purchased anyway, even if it's on a delay. i would argue if you don't get an iphone because the stores were closed, two weeks later you go get one or you order one online so i still believe that's the case and then also keep in mind how big services are for the apple story in revenue, in earnings and also for the growth picture. arguably services are on subscription basis and they're not going to be canceled because there are quarantines somewhere in the country you live in so i continue to operate based

on that belief i have not done anything with my position in the stock. >> speaking of dow stocks, nike got a downgrade from hold to buy, the firm citing stretch valuation, mainland china profit risk and currency head winds most of the street remains bullish. 75% of analysts have a buy rating on the stock. it was so interesting, mike, to see a downgrade for nike this is one that is beloved by wall street, but they do have to deal with coronavirus, both on the supply and demand side. >> sure, and the premium that got built into a handful of these ultimate winner consumer american brands. nike was one of them if you look at a longer-term chart, it is off the highs and i do think you have to ask the question of how much are you willing to give the benefit of the doubt to the great branded franchise and earnings power to continue on for a while. >> but like a lot of these notes

on nike, especially when they take down targets like this, they say they're still the king. and the question is, is the market going to give nike a pass for a stronger dollar and weaker chinese profits? >> that's a great question and i guess my answer would be it's not that they'll get a pass or won't get a pass. it's that when managers have money to put to work in the space, nike is the one they'll go to assuming all of the other names get killed, too. i was looking at lulu today. the stock is 25 points off its high in like four days so they all come in and it's not that nike will get a pass and they'll be fine. it's that i'm going to buy one of them. nike is the first one that gets bought and i think if you actually look at the stock over the last five years, through market volatility that's what's happened. >> wilfred, which is one of your favorite kind of downgrade because the target was increased to 112 from 95

>> four minutes and 20 left. shares of toll brothers sinking after reporting results after the close. hi, diana. >> hey, yeah, toll lowered guidance and the luxury builders margins were down and that sent the stock down 14% this despite a positive note from jeffries which pointed to improved affordability in addition, we got a huge number on january new home sales, hitting the highest rate since july of 2007 and december sales were also revised higher there was some talk on the toll call that a few closings in california were delayed because of coronavirus and any uncertainty in the economy overall tends to hit the builders hard because home buying is such an emotional business back to you guys. >> diana, thanks so much for that mike, the fundamental this morning in home sales very strong you can see the sector being supported off the back of that. >> cycle high.

>> so what happened with toll brothers >> toll brothers had a hiccup with deliveries. it's not really in the sweet spot of the market in terms of the kind of homes that are moving faster and where mortgage rates are a big help so i don't think that's a big shock. it really is more also it's been a complete consensus idea that housing is a very strong part of the market so we're wondering if consumer confidence is going to hold up. >> what do you think in the market internals >> a lot of weakening. it started out with relatively strong breadth up and down is three-quarters to the negative side. this is after two straight days of 90% to the downside so once again you're definitely under a fair amount of pressure. but within the market, what is working, what people are trying to hold up versus not, you see people went back to semiconductors and the nasdaq 100 and then of course transports and banks not getting too much relief today.

today was sort of a growthy attempt at a bounce. and in the vix you barely touched just about 30 yesterday. it's not a decisive spike. it's got to go down several points where you can say it's some kind of relief signal >> trump tonight, is he going to be teleprompter trump? >> i think it will be on coronavirus. >> we have two minutes left let's have a check on bonds. >> wilf, traders were looking for a bounce for the end of the month rebalancing, selling treasuries didn't happen today, but it's happening a little bit right now. look at the inter-day of two years. 113 was low trade. we just traded 116 that's still down 7 basis points, leading the curve in that regard. if you look at one week of 10s, right now at 134 it's only one

one basis point and 30s at 182 they just moved to 183 unchanged on 30-year bonds the vix at levels we haven't seen in five months. and bertha, it looks like nasdaq is going to reverse a four-day losing streak and it's the only index still up on the year. >> that's right, and just a week ago today we had an all-time high today it's those faang stocks that are helping us out. netflix the best performer nearly positive for the week with today's big move. but 10% -- 73% of the nasdaq is in correction, including apple tesla is nearly in bear market territory and american airlines hitting an all-time low. over to bob. >> wild pre-open trading 130, we've gone sideways since then one thing we've seen, huge volume, 50% to 100% higher

volume than normal the exchanges love this. cme, the futures exchange, heaviest volume day ever that's up 6% other market makers also having a good week as well. there's the closing bell remarkably sideways in the last few hours after a volatile session. s&p down 11 and dow jones down 126. >> welcome to "closing bell. i'm sara eisen. >> and i'm wilfred frost we're alongside mike santoli >> there's a little bit of a spill there into the close there's the dow. all day long, you can see earlier today the dow was attempting to close higher, but did not get there. and actually finished off about 119 points, went south there into the final seconds of trade. five days in a row of declines for the major averages

s&p 500, fifth negative day as well for the year. we're down about 3.4%. closer lower by about 0.4% nothing compared to the sharp declines we've seen over the previous two sessions, but now this puts us about 8% away from the record high. the nasdaq had been outperforming all year it's actually barely positive for the year still and closed positive today technology was a bright spot in the session. and the russell 2000 index, down sharply today. it was down worse than the other averages and finishing lowering by 1.2%. >> technology the only bright spot only one sector positive by the close, which shows how weak the rally was. and i point out energy again, never positive throughout and a massive negative. >> down 10% this week. >> oil clearly still threatened by these travel related fears around coronavirus. >> coming up this hour, an

exclusive interview with guggenheim's scott minerd. why he says you should not be buying the dip. >> and former macy's ceo terry lund gren is here to talk. joining us, investment strategist and josh brown still with us. mike, start with you a little bit of an extra sell-off into the close and, as we said, just one sector positive so quite a set of weak attempts to bounce by the end of the session. >> it was a pretty unpersuasive rally. i think you can make the case that things are lining up on a tactical basis we're oversold and did a lot of heavy selling in a concentrated amount of time usually that means some kind of a bounce, only if due to market mechanics. we're very gun shy about the headlines right now. you saw the way it's reaccounted to incremental news.

it's hard to make the case that we've built up a resistance to the news. >> i understand how you can say it's oversold and look at the internals and technicals i don't understand how you can price anything in with a giant uncertainty out there, like what this virus is going to look like in the united states. >> you can't in a very tangible way. but after 9/11 the narcotic bottomed even though we didn't figure out terrorism the market overshoots so much -- and i'm not saying we've done it yet. >> the history of these things is that actually the stock market bottoms before the headlines do so the headlines continue to be scary, but at a certain point stocks stop going down there's no fundamental way to look at that so you can take all the models, whether it's a valuation or whatever, throw it out it's not going to help. >> what do you make of today's attempted bounce >> i think as long as the

negative headlines are here i think we're going to be struggling to find the bounce. the markets were already reacting to this and we're only a week removed from an all-time high on the s&p 500. we're extremely humble about our ability to predict when the headlines are going to turn positive once again, so we're not looking for a huge bounce and certainly in energy. and we're looking for more struggles in the economic data that's going to be coming down the pike we know this is affecting the global economy. >> where do people go if they want protection? because bonds looks very expensive and gold. >> i completely agree. even if you look at the more defensive parts, which may look cheap compared to cash and bonds and gold, we're trying to find a middle of the road we're looking at defensive growth we like health care. it's going to be hard if the markets are choppy or volatile

to find any sector that's going to perform well aside from utilities. but if you're waiting for a bounce to happen, waiting in those sectors is probably a mistake. >> what about health care? second cheapest -- >> i'm just going to hit pause very quickly we've got an earnings release. >> booking holdings reporting earnings, $23.30 adjusted. better than the estimate the revenue came in at $3.4 billion, also higher than the $2.8 billion however, the stock is moving on guidance the company sees its revenue falling 3% to 7% in the first quarter and some exclusive comments here from their ceo glenn fogle to cnbc, he says while in reference to coronavirus, he says this is certainly having an impact, the extent is hard to predict. the difference between what we saw happening six weeks ago, three weeks ago and even over the last few days with new outbreaks popping up outside of asia illustrates the uncertainty. no one can predict the trajectory so it's not possible to predict what the overall

impact will be he says what i can say is that we are keeping a very close eye on the updates and information from the w.h.o., the cdc and other organizations. they're working to support their customers. i think the comments highlight the fluidity of the situation. it's really hard to predict when the virus will be contained and therefore when travel will reboun the stock down about 4% in extended trade the conference call about to kick off in less than 30 minutes. i'll be on the call to get a better idea as to how bookings long-term could also be impacted ahmed ahead of the 2020 olympics in japan. >> thank you travel stocks right in the eye of the storm. >> and before this, this was a troubled area just because of industry dynamics and things like that. the booking sites were having a hard time. now, longer-term the stock has looked precarious. it was close to its lows even before the report. but longer-term there is a sense that when things like hotel

vacancies start to go up, the market power does shift back sometimes to the portals as opposed to the hotel chains. but that's probably way down the road before that starts to be turned as a positive. >> it will be interesting to hear more comments on the call but the brief comments weren't perhaps as bearish as you might have expected relating to coronavirus for a company that's so deeply in the eye of the storm of this, as you mentioned. but it's still down 2.3%. >> we were talking about the broader market and the sensitivity around headline risks. do we know why the market turned around today there were a few headlines going around another case was confirmed in the u.s. and there were reports of people being investigated in nassau county. >> investigated? observed examined i like better. >> this is a headline -- >> i feel like i got lumped in with that. i am immune.

i was bar mitzvah, so don't wore about me your financial adviser is fine but i think the headlines will get worse and at a certain point stocks will stop reacting negatively and i also think it's worth pointing out when you see a headline hit and then an immediate market reaction, it's not people that's software. those are algorithms and for every one that does that, there's one that's been designed to counter that mood. so don't think that you need to have a response to every one of these things. >> in terms of the headline, what is the news flow that needs to be behind us for the market to start to feel like they're comfortable again, to feel like things have peaked in europe and the u.s. >> i don't know if we have to get all the way to that point, but to be on the path. right now i feel as if everybody universally expects some confirmation that there is transmission of this disease in the united states. if we go two weeks and we have no reports of that and we have a sense that people are being

tested, who knows? i would rather not get occupied with exactly what the next plot points have to be, much more about how the market is digesting all of this. trans important is already 13% off their high you have parts of the market that have rushed to a place that have said things are going to be bad. and even if we feel like it's contained, the economic disruption that's involved in changing behaviors and making sure we don't have a lot of travel could hurt a world that did not have a big head of steam up in terms of nominal growth. >> all right, a pair of notable investors appearing on "squawk box" earlier today to discuss the market sell-off this week, cooper man and palihapitiya have different opinions. >> we've taken some air out of the bubble and that's constructive >> this will take eight to nine months i think to roll its way

through the markets and for the markets to re-rate and i'm probably at the tail end of the buyer. and right now if i can just manage my own psychology for the next five or six months by not losing as much as i think i'm going to lose, i think it will feel like a win. >> what's the time horizon here, josh >> you know, i don't think that we've got a way to definitively say, oh, yeah, six months the air will clear but i think i'm in that camp of there's absolutely no reason to plant the flag and just because you have one green day, say, all right, the coast is clear so i think the smartest thing you can do is pick the names or even the indexes or sectors where you've missed out and you see them coming in, go very low and put in buy limits. take your time, let the market bring the prices down to you and if you miss them and there really is a bounce, it's like

not the worst thing that ever happened that's what i do and i've been doing this for ten years. >> what's your take, as those sound bites were discussing, and what will you be looking out for to make you feel confident the worst is behind us >> we're still two months away from getting first quarter gdp reports so we're not going to have a good idea of how weak the economic story has been in the first quarter. >> do we care what the first quarter gdp numbers look like? >> i think we want to know what momentum coming into the second quarter. my sense is the january data has been quite good. some of the survey data we've gotten from february has been surprisingly good. when is it going to start hitting? it could start hitting us on friday when we get the manufacturing report but we know the equity markets react negatively when they're coming in far below expectations. >> that wasn't the only thing that leon and chamath disagreed on there's some good stuff to watch online chamath is not so much of a public investor as leon.

>> we've got more earnings to tell you about box is out deirdre with the numbers. >> the cloud storage and collaboration company beating on the top and bottom lines shares are up more than 10 pr right now in extended trade, bringing losses for the last 12 months to about 30% and putting them almost positive year to date adjusted eps of 7 cents. that is 4 cents above estimates on revenue of $183.6 million also better than expected guidance above the street's forecast i just spoke to the ceo aaron levy and he said there's nothing to announce right now, but in light of their target to reach gap profitability by year end if that milestone was in the cards, he said there was no particular

time line. they'll eventually get there on coronavirus impact, he said they're in watch and see mode and adding that anything that disrupts the global economy will indeed put pressure on his industry shares are up 11%. but remember for the last 12 months it has not been a pretty picture. back to you. >> deirdre, thank you. the stock is down, what, almost 40% over the last 12 months. >> they had a rough run. there was a bit of activist noise and all the rest of it >> is this a scenario you like >> yes, in fact, this is our favorite sector coming into the year we haven't changed the thesis. what we're looking for is companies that can continue to earn through economic weakness and through even sort of doubts about the global landscape. >> but on the economic weakness, don't these companies get hurt if enterprise intending goes down and if businesses get a little jittery when it comes to upgrading their software or systems? >> so that's a key point we have to look for.

we know investment has been weak, but software investment has been the exception to the rule it's been the construction and equipment that have been weak. so if software investment seems like it's heading down because companies aren't spending any money to upgrade their infrastructure, that's going to hurt the sector for sure. >> energy clearly in the eye of the storm, more than any other sector, it hit this past week? >> it was already kind of guilty until proven innocent. what happens now with energy, it's a commodity it has to go somewhere the clearly price is obviously lower for the actual physical commodity and there's really no sponsorship of the companies themselves, because you're seeing the big majors being seen as essentially dividend mills and nobody knows if dividends are going to be there forever. so at some point obviously it's going to get too negative in the short-term. >> buffet just bought $450

million worth and he does not buy oil stocks the last one he was involved with was phillips. >> he likes phillips 66. >> it was a spinoff of that. but it's not common to see buffet buying energy stocks and i'm not saying half a billion dollars is a lot for berkshire i just think it's worth thinking about. exxon mobil, highest dividend since 1987 stock in the biggest drawdown it's ever been in going back as far as i have data, 1972. >> but would you own it for the dividend >> not just for the dividend i just think the dividend is indicative of how little trust there is in anything energy because exxon is supposed to be the gold standard. >> microsoft providing an update here. >> microsoft is essentially warning related to the coronavirus saying mostly in the pc related parts of the business, not coming back as quickly. so that's what we're seeing in terms of reaction. >> on the china business

i feel like the biggest question facing investorsright now, brian, maybe you can help us out with it, is post crisis the mentality has always been it pays to buy the dip because in some way or another, fiscal or monetary stimulus will come in and will rescue us and you don't want to fight the tape when that starts to happen in this unique case of a coronavirus, potentially becoming a pandemic, can that still be the psychology. >> i don't know that monetary policy is the way to solve this problem. last year financial conditions were already quite loose and the fact that the markets have priced in three rate cuts means the fed has to deliver more than that to surprise the markets on the upside if we're looking for the fed to come in and bail out the equity markets, we're probably looking in the wrong place. >> and over that span, those dips were 5%, 7%, 18%, 20% and by the way, when they get to

8%, they usually don't stop there. >> i've even heard strategists talking about fiscal policy sim lis going up and they can cut taxes in china but in an election year in the u.s. where the democrats are in the house -- >> what does that have to do with curbing the spread of the virus? it's not going to make people feel better about traveling if we're dealing with human-to-human -- i don't know, this is an administration that took a sharpie to a map and pretended where a hurricane was going rather than say he was wrong. so i'm not confident. >> thank you, josh brown and to brian. up next, former ecb president jean-claude trichet will join us from paris plus, guggenheim's scott minerd with his latest mark strategy. "closing bell" back in 90 seconds.

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that squares peer to peer competitor to. it's up 60% from last year when they first disclosed the number. and cash revenue came in at $183 million, that's a 96% growth year over year guys, back to you. >> thank you the dow falling again today, furthering this week's big slide with coronavirus fears spreading across the globe what will the economic impact be and what can central banks do to mit grate the risks? joining us is jean-claude trichet. thank you for joining us, doctor can central bankers do anything to fight the economic fallout from coronavirus >> it's a pleasure to be with you, and let me say that central

banks are very, very morimporta, of course, and able to deal with a lot of problems. but there we clearly have a supply side shock and not a demand shock so it's clear that the traditional weaponry of the central bank is less fit for the present situation. i mentioned that, and that explains why central banks are keeping composure, not overreacting, and looking at the situation with great care. it seems to me it is the attitude of the federal reserve and ecb at this stage. and i think they are right first of all, you need to keep composure in such circumstances. another element, which is of course very, very important, is that it is a global issue. we have a global problem, a global threat. the pandemic is already there, obviously. and we need to have a global response in my opinion by

authorities. the ifi, the imf and the g-20 have a role to play as soon as possible in those circumstances. >> do you think the european union should close its national borders? >> the decision has been taken until now not to close national borders and at this stage, even with what happened in italy, it's been decided to maintain free move of persons all over europe that is the present situation. i take it that it is really the way we look at things. of course, we are in a moving territory. nobody knows what can happen, but it seems to me that at this stage things are under control in europe. but again, as i said, we clearly have a pandemic. it is really a global issue and

not of course an asian issue as it was at the very beginning. >> mr. trichet, thank you for joining us coronavirus concerns leading to more volatility meg has the latest. >> a 15th case now confirmed in the noid health secretary alex azar told lawmakers about the case earlier and the cdc has confirmed to us but we don't have details. the u.s. has 12 travel related cases and two cases with close contact to those travelers and cases from the americans evacuate from the cruise ship. cases worldwide now topping 81,000 with for than 2,700 deaths for the first time today, the world health organization said the cases outside of china surpassed those in china brazil confirming the first case today in latin america

wilf >> meg, thank you so much for that don't catch a falling knife. that's what guggenheim global chief investment officer scott minerd is saying about this market we will discuss with him how much more downside he sees you can always watch us live or listen on the app, the cnbc app. make sure to download that and tune in tonight, markets in turmoil special 6:00 p.m. eastern time [cymbals clanging] [knocking] room for seven. and much, much more. the first-ever glb. lease the glb 250 suv for just $419 a month at your local mercedes-benz dealer. a simple, modern way to pay yourself from your portfolio.

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fifth day in a row of declines for the market. let's go back to mike santoli. >> the horses are kind of spooked. it's something we keep an eye on and it shows a lot of internal market activity and characterizes it as fearful. we've looked at it in january and showed that it was at a multi-year high. that was showing it stretched to the upside here we have it just in the low 20s as of today, so about 22 nothing too magic about the levels but look at where we bottomed in the past we've had major sell-offs. this is early 2018 and late 2019 this one was last year, 6%, 7% decline in august. it shows that we're getting there. a lot of these things are lining

up to say that sentiment is getting an adjustment. so don't know if that's enough, though, to say that we have a short-term low. >> thank you so much for that. 20%, that's how much guggenheim chief investment ceo says he'lexaiwhl pln y he thinks this is not a buying opportunity. memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. and when you open a new brokerage 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

while our competition continues to talk. ♪(music playing) ♪this is the first day of my life♪ ♪i was born right in the doorway♪ ♪now i don't know where i am, i don't know where i've been♪ ♪but i know where i wanna go >> welcome back, time to get a

cnbc update with sue herera. >> hello, everyone here's what's happening at this hour senator elizabeth warren picking up a star endorsement on the campaign trail in south carolina singer john legend saying warren has a plan to win. >> none of these plans mean anything if you don't have the persistence, the wherewithal, the passion, the tenacity to get them done. and that's perhaps what inspires me most about elizabeth warren >> house lawmakers holding a hearing about all of those hidden fees on tickets for live events ticket master's president says her company supports showing those fees up front, but only if everyone does it >> right now you need consumers to understand apples to apples and today if you look at ticket master and you go to another marketplace, that ticket may seem more expensive, but the other marketplaces are marking that down and putting fees as

high as 40% to 50% on the back end. >> it is a complicated story, but we'll be following it for you. that's the news update this hour i'll send it back downtown to you. >> thank you so much as always the dow losing more than 2,000 points this week scott minerd of guggenheim partners tweeting last night this is not a buy the dip market it's the don't catch a falling knife market he joins us on the phone scott, thanks so much for joining us. >> thanks for having me. >> so good call last night given that clearly we still closed down today despite a bit of a bounce this morning. why were you thinking that last night? >> well, when you consider the scale of the epidemic at this point, it's hard to believe that we aren't going to start running into major supply chain interruptions and start seeing more pressure on earnings and free cash flow for corporations.

the other thing is that while i think we've reached a tipping point here, and that is if we can't get this thing contained soon, that is probably sometime this week, then, you know, it's going to come to america and once it comes to america, then we have an even more severe problem on our hands in terms of earnings and employment. >> so you've been talking about i think for the last month or so that you think this market is looking like a bubble where central banks come and liquidity rushes in and the assets get inflated i wonder how you view that right now in light of the recent price action and whether you think it could keep perpetuating itself if central banks from around the world keep coming in >> it's interesting. i think that if we can hold somewhere in this 3,000 to 3,100 range on the s&p and we get some evidence that the coronavirus is being contained, then i think

that in all likelihood central bank liquidity will dominate and drive stocks even higher than we were my call has been that we would be up 10% to 15% on the year, even though that was pre-coronavirus. but even though these assets are massively overvalued so on the back of that, you also turn to the bond market and we have everything on the yield curve now comfortably below 2% yield, making historic new lows. in all likelihood, if central banks keep the printing presses running, that's just going to force bond yields down further, which will help support speculative assets elsewhere, including junk bonds. >> so what do you buy for protection do you buy bonds even though they're already so low >> that's a tough call, wilf when you look at where we are on the charts, where the ten-year

note, if it is truly broken through the support that we've had in place for like the last eight years, you know, the target yield for it is 25 basis points on a technical count. similarly, the target yield for the long bond is at 1% so in this environment, as a hedge i think you need to have some exposure to bonds and the other place where we've been putting money is into precious metals, silver in particular we think is more attractive than gold. >> so are you going to have to adjust that call that you made on the market to go up, what, 10% this year? >> well, i think it's premature because, as i said, i'm going to give the benefit of the doubt for the moment to the people that are advertising that this thing is well under control. but the real signal to me will be that the s&p breaks below 3,000 and then at that point i would probably start revising my

outlook for the year >> scott, thanks so much for joining us we appreciate it >> appreciate you having me. thank you. to be on the bottom line, missing on revenue, though, for the quarter, five points versus the estimate of $5.48 billion. as it pertains to coronavirus, unlike other companies that have been attempting to forecast the end of the virus, marriott is saying the virus could be vital to the first quarter and full-year 2020 results, however it could not estimate the financial impact of the virus. the company not even attempting to estimate how it could affect first quarter earnings and bookings the call not until tomorrow morning. the stock basically flat at this hour flt i'll send it back you >> find out whether the coronavirus will have a

long-lasting impact. >> and as we head to break, take a look at shares of microsoft falling after the company just said that the coronavirus will impact its qrtlyuaer guidance. we'll be right back. myww's been an amazing journey.

it's almost like a challenge everyday to see how well i can eat and still enjoy myself all day long. i wake up every morning to see how much weight i've lost and how much better i look. myww join for free and get three months free! a number of retailers have already shuttered china's stores and warned of a sales impact from the coronavirus outbreak. jorgen stanley saying today the impact on detail could be more severe than jektexpected

joining us for what this means for the retail industry at large is our closer today, terry lundgren, former chairman and ceo of macy's. nice to have you here. >> pleasure. thank you. >> how do you think of the impact that the coronavirus in china is having on retail in america? >> well, first of all, let's start with china, because those retailers that are dependent on china as their consumption base have got a real challenge on their hands because people are clearly not shopping and i do know that the physical retail business there is down significantly. hong kong, all the way through mainland china and i think now into south korea as well so that in itself is a challenge if you're dependent on that. coming back into the united states, you haven't seen the impact yet all these earnings reports are interesting, but that's all ending february 1st and the virus really took hold after that in terms of its conversation and impact. so you're going to see that in the next quarter and then the quarter after that, for sure so i definitely think, knowing

what i know about the work shortage there, the stoppage, the limitations that are being put on companies, being put on offices in terms of how many people can congregate in a certain place at a certain type, is so restrictive that it's got to slow down production and that will be as long as this takes place. i understand that they're starting to how people to come back into the factories, slowly, surely, gradually. but it's going to have an impact certainly for the first quarter and i think perhaps the second quarter as well. >> your successor out with earnings yesterday, and did warning it was having an impact here in terms of tourists. how big of a chunk of the industry is that >> let's just talk about china, for example. last year the chinese impact was 3 million travelers spending about $6,700 a year, that includes lodging and the like. but all in of what they spend at retail is still significant,

about $15 billion. let's say that gets reduced in half and then it's whatever it is, $7 or $8 billion i don't think that is significant to the size of the purchasing issue that we're talking about here but i can almost assure you that there's going to be an impact to that degree. but i think the broader tourism is a bigger question so are the italians going to travel, are any of the europeans going to travel? and that's a much more significant number, more like $120 billion that's a big number. and so if that gets even reduced by 10%, it's meaningful. >> what about domestic u.s. consumers, do they get spooked by these sorts of things and just buy online for the next month or two >> i don't think so yet. but i think there is beginning to be a worry. i don't believe that's the case right now. i think what you're going to see in the nounited states is a continuation of where the consumer has been shopping,

which has been trading down for the last couple of years and i think that middle america target is one that's shopping the least. and if they are, they're shopping down or shopping online. >> we were just talking about macy's we were actually looking at companies with very low valuations in the market trading under six times this year's earnings >> yeah, i noticed that also. >> how is this going to turn it around >> confidence. i think when macy's has consistent delivery of exceeding expectations for three, four quarters in a row, you all, investors, are going to have confidence and when that happens the stock will start to perform. >> in terms of the u.s. consumer as a whole, do you think this spooks confidence? >> look, the consumer has income the job numbers are terrific there's still good reason why the economy should continue positive into the next several

quarters so all of that remains i don't think that changes so unless something more dramatic than what's happened to date in terms of this virus spreading -- and i don't see that i think we're more likely to address this virus more quickly than the historic pandemics which usually take about six or seven months for the vaccine to take effect. >> how dependent is your industry on china and is it too much we had the trade war last year and now this. >> the answer is yes, it is too much and it's by category certain categories are less. the beauty industry is far less affected the footwear and shoe industry is greatly affect because something like 90% of all footwear of under $100 at retail are coming out of china and we all need to diversify that strategy and they will do that. i know that that will happen over time but that's not going to happen in 2020. >> thanks so much for shopping by.

>> pleasure. >> up next, inside the mls, i stat down with david beckham about his new hiemy expansion teams. the influencers he says have helped him get to this point that's coming up next.

let's get a check on today's after-hours movers booking holdings under pressure after the guidance offset an earnings beat. square surging on better than expected earnings and guidance, and box jumping after beating on the top and bottom line and a stronger profit and sales outlook. >> after many years of delays, soccer legend david beckham is launching his latest venture, the new major league expansion team into miami. other co-owners of the team include wework executive chairman and miami-based businessman. i sat down earlier with beckham and asked whether the new team has the potential to reach the multi-billion valuation of some of europe's mega clubs like m s manchester united. >> of course you have

aspirations and you want to compare yourself to the great clubs financially and obviously on the field as well and i think that that's, as owners, what you look to you know, i was lucky to have played for manchester united for the years i did. i knew the popularity that it had around the world and that's why, you know, it's worth what it's worth today but i think what we want to achieve with our club, we want that longevity, we want to be around for a long, long time to come we want our kids to turn up at the stadium, 10, 15, 20 years from now and say this is what dad has created and what our dads have done. >> the forbes review puts the average value of a franchise at about $300 million, a handful are up at $500 million where do you think you guys come in at given the amazing backing you have and the uniqueness of being the miami franchise? >> well, i think at the top of the league, and for two reasons.

number one, when you look at the global nature of our team, the amount of i think corporate sponsor interest that we have with companies that have global footprints, i think obviously there's an impact of david and what he represents an impact of david and what he represents globally. so i think that the economics of the mls have changed i think when you look at the recent franchises approved that have franchise tags of over $300 million, you have to add to that investments in stadiums and infrastructure >> on the topic of corporate partners, did you personally want to be the partner >> well, they're the partner of the league, so i was obviously very proud to be part of that. adidas has been my sponsor and partner for over 20 years. obviously it's very nice to be able to work with them and work with them on the kit and the

design i'm very proud they are part of this >> david, in your transition from sports star to now a leading businessman, are there any key business people that have been a great help in advising you along the way >> to be honest i've been very lucky in my business career that i've surrounded myself with the right people, good friends and people that have advised me in the right way. i've been very lucky to have had great partners over the years on the business side, and i think that has helped me in this second journey of my life and my career played football up until 38 years old. i started preparing on the business side when i was probably 30 years old to then go into the next phase of my life on the business side so being in business with people like jorge, with marcello and

that is a great place to be because when i have needed advice on the business side, i have these guys to talk to but also, you know, friends and family and obviously having a wife that is also a businesswoman as well is very good position to be in >> jorge, when david joined the l.a. galaxy, already he was a player that transcended the sport, but he joined kind of before the peak of the social media revolution, in fact, even before instagram was founded how much of a difference would it make if you're able to sign someone like a renaldo today with the following they have on social media >> first we have david beckham >> you do. now 60 million followers >> 61 million. >> you undersold it. the social media platform channels are important for a multitude of reasons we'll have the opportunity to bring in global superstars at

the right time, but it has to fit what we're doing as a team and the culture we're establishing maybe david will have some competition on instagram followers. >> cristiano be your number one if money was no object >> i think we've always looked to our team and what players we want to bring into our team. of course you always want the best, like every owner probably in the league. if you ask them the same question would you like leo messi or cristiano, of course, anyone will say yes, of course like jorge says, it's one thing i've learned, many of the many things i learned is the players you bring in to your club have to fit right on all different levels it's not just about bringing the best players in. it's about bringing the right players in, and that's what we hope to do >> well, that was obviously a great honor for me, the short business part of the interview we'll post more online including

what it was like captaining england. you dressed for this because you know the club color is black with pink. >> no, i did not >> by the way -- >> maybe it was subconscious >> maybe >> is the dress adidas >> did you hear how he pronounced adidas? >> i did we checked that with the ceo of adidas, he adapted to say that and said soccer throughout the day as well. the only other thing i would add, when he came to the l.a. galaxy, gave a boost to the league and plateaued last season the mls was down 30% in terms of tv viewing, which is really bad i just pray and hope as a massive soccer fan this works, works for miami and the franchise and works to bring the sport more widely across the country. >> was this the highlight of your year? >> the highlight of my career. >> i'm surprised you didn't bring up the spice girls up next an economic bright spot mike santoli with a look at good news for the economy >> tune in for a scipeal

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final installment. mike >> a lot more birds doing more nesting in terms of homes in this country data this morning we talked about it earlier, new home sales, a new high for this cycle. look at the very long-term stretch of this indicator. i mean, it tells you a couple things one, very, very consistent strength with the exception of this hiccup right here shows you how outsized the boom was, the bubble, back in the mid-2000s. i think the question is what's the normal rate, the normal pace for this stage of the cycle? just a little bit over $800,000. especially the younger generation we do have some tail winds behind this trend. you wonder exactly how much more runway there is for growth >> i think it also goes to the point that low mortgage rates are there. >> this did lag historical rates of growth for half the economic cycle was subpar

>> in terms of if we pivot to the broader markets, final thoughts, we tried to bounce but failed and came back in the end. not an insignificant half a percent. >> that's right. i really do think we're in the realm of technicals because we have a vacuum in terms of the news that we think we need, the fundamental news, nothing forward looking seems to be gaining prak shgai gaining traction to have some relief in the form of higher yields that worked for the morning and then they pulled back. to me it's the key toggle we're dealing with right now that as well as seeing the market on a short-term basis gets sold out. we see these panicky moves >> and, again, i think, wilfred, the headline sensitivity we're in the mode if we see a case happening somewhere else, the market is paying very close attention. we watch all of the news conferences from the hhs secretary, obviously will watch it from trump himself. that's the jitteriness

>> absolutely. >> so sensitive to every headline and just waiting for what's coming out overnight. >> even if equities weren't as bad, oil still very soft and energy still clearly the worst performing sector. >> one thing folks are looking at china itself, the news, their stock market -- >> nih told us we can't do what they do. >> we are out of time. thanks for watching "closing bell ". >> "fast money" right now. from the nasdaq, as always, this is "fast money. i'm brian sullivan welcome, everybody gina sanchez, ceo, good to see you. tonight investors on edge. the coronavirus spreads. stocks tumbling for the fifth straight day we're going to break down what you should be doing with your money in the days, weeks, months, maybe years ahead. plus, important new comments about the virus from two major travel companies