[ inaudible question ] >> this meeting was set up before about drug pricing, set up a long time ago with the pharmaceutical companies and that was about drug pricing because we brought the numbers down last year, first time in 51 years the drug price prescriptions have come down i have a meeting skcheduled on drug prices but there's another subject to do with the vaccine, how are they doing [ inaudible question ] that's what we're going to find out. we know that we've asked them to accelerate whatever they're doing in terms of a vaccine, absolutely [ inaudible question ] these were set up a long time ago. you could ask that to the democrats because they're having a lot of rallies they're all having rallies that's what they're doing, they're campaigning. [ inaudible question ] i think it's very sad, yes

[ inaudible question ] >> we wanted to find out but we're getting out, we got out. we had good meetings request the taliban and we're going to be leaving and bringing our soldiers back home we've been there almost 20 years. done a great job we've got rid of terrorists. now it's up to other countries to get rid of those terrorists [ inaudible question ] we have discussions to go, but we've mad a lot e a lot of prog. okay thank you. >> the president ahead of a meeting this afternoon with ceos from pharmaceutical companies, maybe giving just a peek of what we might expect to hear around 3:00 time. with that, stocks are close to session highs. eamon javers, maybe you can tell us more about what we could expect today >> yeah, carl. we expect we'll see about eight ceos of those pharmaceutical companies here at the white

house today. the idea is to sort of gather all the big brains in one room at one time and let the president know exactly what the expectations are for a vaccine and for treatment for the coronavirus. interesting to me, carl, to hear the president being asked if his rallies are safe given the coronavirus. that gives you a sense of the degree to which we don't know the impact of what virus will be on american life in 2020 given that, as he points out, democrats are holding large rallies, he's holding large rallies around the country if those rallies are deemed to be unsafe and the president says they are safe now, that really affects the primary season on the democratic side and the president's ability to campaign in 2020. you wonder, big unknown "x" factor, how that would affect a presidential election going into the fall >> eamon, good point we'll hear from you this afternoon. eamon javers at the white house on another busy monday good monday morning. just after 11:00 a.m. at ge headquarters in boston, after

11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ good goode mondmonday morning i'm carl quintanilla with jon fortt at post 9 of the new york stock exchange we're watching the attempted stock stabilization mere on word out of the world health organization, fundamentals uncertainty, volatility, traders are turning to the internals for signs of some exhaustion but are those signals reliable in this crisis

bob pisani has that on the floor. bob? >> carl, it's comforting we're getting a bounce today because friday the internals screamed by we don't know whether they're accurate signals or not. take a look here some indicators here this is a relative strength index, 14 day, shows you how the market is moving up or down in terms of momentum in the last couple weeks look at this huge drop below 30s is consider oversold below 20, you almost never see that with a major index. the vix hit 49 the other day look at that this is going back 20 years. this is a very, very rare event. back here we were up close to it look at this we hit 80 back at the financial crisis that is is a once-in-a-lifetime event. when you get towards 50, that rarely appens, doesn't sustain itself very long usually it's a sign of short-term bottoms

we're trying to figure out if that's a good signal or not. new lows on the new york stock exchange 1,000 is a pretty rare occurrence that was the last time we saw that in december 2018. you remember what happened christmas eve on that awful christmas eve. another signal like markets extremely i don't ev lly overso. high yield etf look at this moving to the downside we had 20% of the assets under management of this fund. the biggest high-yield fund the, basically redeemed over the week and high yield spreads blew out. another sign of panic people look at for signs of short-term bottom everything is screaming buy. are we oversold? yeah do we have a bunch of lows that are unusual? yeah extreme readings in the vix?

yeah put call ratio is elevated bonds on record outflows everything says buy, but what if this is that rare, rare event, going back to the 2008 financial crisis where these signals are not sending us the right indications on whether or not we should buying. no one is clear whether this is that super rare once every 20-year event or whether this is one of those garden-variety panics you need to use the old indicators on. back to you. >> with v we'll have more on that we do want to turn back to the passing of former ge chairman jack welch bob wright joins us on the phone this morning bob, good to talk to you on a tough day for a lot of jack's friends. thanks for the time today. >> thank you for allowing me to come on, carl. >> just share some reflections it's hard to imagine a manager

who knew jack better what thoughts are you having about him today? >> well, i worked for him for 20 years. he was demanding, exciting, a brilliant strategist, and man at the highest level of energy. he clearly was one of the best ceos of his time i'd also mention that the last few years have been very rough for him, but he didn't complain and he tried to work through every medical setback, small or large. very difficult >> what do you think is more profound to think about today, his influence on ge itself or his influence on what we know is a generation of managers who have gone on to run giant companies themselves >> i think it's both he wanted to make a lot of changes in ge right away, but he didn't feel he could do it in the natural way sort of slow

progress so he set out to put in big goals, and he tried to get people to do things right away as opposed to wait two or three years. and that became -- that was a lot of pressure on the organization, but those of us that, you know, lived through it, we're better for it, much better for it. >> bob, how do -- sorry. go ahead i didn't mean to cut you off >> i mean, the people, you know, that could do this benefited greatly, and the organization got changed radically. so that was not easy to do in those days >> bob, it's jon fort. i'm wondering how do we today translate jack welch's legacy into some of the digital challenges, the shifting economy? how do you take what jack welch

did, his approach to leadership and management and continue to make it relevant today are there any adjustments that you need to make either in the way that you treat people, you cut in organizations, you maintain efficiency? >> well, i would say that the things that he wanted us to do was always looking at -- he was very interest ned in technologis he wanted us to adapt to current technologies, don't just live with the past. i think we're all trying to do this the digital world has changed everybody, but you can't hang around the history you've got to be out in front of it that's what he tried to do on everything big company to do that with. >> bob, you've written about this in your own memoir, but i'm trying to -- think of a time early in your career where you realized you were working for someone who was not your run-of-the-mill manager and of course his influence in some of

the very big early decisions you yourself made when it came to the future of media. >> well, i met jack welch when he was in pittsfield, massachusetts. it had just become kind of a major figure in ge back in the '70s so i had a chance to observe him right up front, like sitting at the same table with me and i had left i had gone to cox and done some other things, all of which, you know, he knew, and so he kind of followed me. i followed him in terms of his history and what he was doing, but he was always trying to make sure that technology didn't get behind him he wanted to be up with it as hard as that is i could say that same thing today. you know, it's like what amazon has done, now everybody's following. but everybody's late, and he

hated being late to technology >> bob, as you're talking, there's a picture here, a live shot of the exchange where his picture and his name are on the media cubes above the posts, which is just another testament tohis influence and the respec people had for him thank you, bob >> thank you very much have a great day we will all remember jack in his very best days because he was such a dynamo. thank you. >> bob wright, thanks. back to this morning's market rally with us now, lazar asset management's held of equity strategy ron temple. good morning >> thank you >> we've been talking about how the market seems to be expecting a 50 to 75 basis point cut by march. that wouldn't leave a lot of ammo left to deal with future shocks what message should investors take if the fed does or doesn't

do that? >> i think investors need to be careful here about getting too excited about the fed. what we have here is a supply shop if you can't go to work because of an infection or coronavirus, even if the fed kuflts rates 50 basis points, you still can't go to work. this is different by trying to make it cheaper to buy goods and services it's a nice sign by the fed. but we should recognize the limitations of fed policy. >> what's your reaction to the extreme volatility we've seen? even before the market opened this morning, you know, last night we were down, then up, then down, then up again we got near the flat line on the dow, below it a couple times in the s&p. now we're pretty much at session highs. >> we're still in the early days of the coronavirus story there's a lot we don't know. we don't know with certainty the incubation period. it might be as long as 14 days before patients show symptoms but it could be as long as 21

days we don't know infection rates, the case fatality rate, when you get infected, how likely you are to die we're probably underdiagnosing this by a large magnitude and overstating the death rates. i think we also have to recognize three months ago this disease in theory didn't exist, so mass producing testing kits is difficult i think there's a lot more to unfold i think we'll find a lot more people have the virus. it's hard to gauge the economic impact we can try to size it in china but it's difficult we don't know how people will respond from a behavioral perspective and if they stop going out to public events and shopping malls >> the vix is down to 36 we do have some macro desks basically calling for flat gdp growth in the second and third quarter. to the degree we get rally, how much of them are going to be

ephemeral? we haven't been able to reset the revenue rate out of q1 >> there's a real issue with the volatility i definitelythink you could argue in the short term the market goes oversold, but it's too early to say we can call a bottom i'm looking at the volatility as a great opportunity to upgrade portfolios some of the expensive companies are on sale, a 25% discount in some of these stocks in the last 2 1/2 weeks. there are long-term trends you can identify where you might be getting opportunity to rotate out of something else in the market i'm looking that the as a rotation opportunity rather than this is your chance to buck up the truck and load your cash into the market. >> hate to talk about the drop last week in past tense, but was that a panic or sobering up? valuations were generally in the markets pretty high already.

should investors -- think about things getting back to normal, is this level more back to normal or is where we were more back to normal >> i think it was more of a sobering up. i think the market got ahead of itself valuations were stretched in a number of sectors. and the market had been ignoring coronavirus for weeks. as long as it was confined to china, people seemed to be willing to ignore it the reality is china is 17% of the world's economy, so we should never ignore what happens in china and it took a spread to europe and people said this is really important. i think it's the right adjustment for the market. maybe it happened abruptly, it was violent, but i think people had to start paying attention and we finally did >> does it change the way a global investor should think about relative value in the u.s. >> you know, i think this is one of those things where it's hard to make a broad generalization this is an opportunity to come back and look at the fundamentals of each individual company. the way i'm looking at, this

exposes some of those companies that are highly levered. the risk of recession has gone immaterially some of those with abilities to compound assets over time -- >> so it's a boom for value. >> value versus growth it's about an opportunity for higher value companies at a lower price. value has underperformed growth in the last couple weeks a lot of the value stocks tend to be more cyclical. you have financials, material, and industrials. if you're having a risk, those are more successable >> you taking a harder look at balance sheets >> we're always focused on the balance sheets you should be doing that we've seen the credit spreads in the high yield market widen out and some interesting reversals the market definitely is recalibrating risk and repricing risk right now >> this started in china where a

lot of the goods that are made are relatively easy to count nape oar cocount. they're coming out on shipping containers we hope this doesn't have a major spread in the u.s., but if it does, how would you advise investors to think about the supply of knowledge goods, software that maybe isn't getting coded or checked, people who went able to be as efficient as they might have been because perhaps they're working remotely with teams that work better together is that somethinginvestors should consider or wait for earnings reports months down the line to gate handet a handle on? >> how much time are people spending in the office talking about coronavirus instead of doing their job? there's a productivity degradation in this situation. there will be people working from home, perhaps less productive that's largely on the margin i'm worried about people who can't get to work.

the most susceptible people is usually the hourly workers where many of us aren't going to the office and we're telecommuting then you're not going out to lunch, using a taxi in new york city, and the people you're not using services from generally don't get paid when they're not working. so i think this kind of comes back to how you think about the economic impact and how much of this is demand and destruction versus delayed construction. i think that demand and construction is very real. we're seeing that in china only 58% of the people from tier one and two tier cities who left for the lunar new year have returned home. >> and have a month of cash. >> it's a tough environment for small business and companies with more leverage, less cash. i think we have to think about all those ramifications for the economy and security selection >> really illuminating on real and potential impact thank you. >> thank you

>> dow is up 540 in case you need reminding, this would be the first up day in eight. let's gate check on the big movers, who's getting hardest hit and who's holding up better than expected. dom chewu has that >> you'll see that consumer staples, the best performing sectors in a day when every sector is up on the move when it comes to individual mover, some of the most directly impacted by the coronavirus have been those stocks in travel and leisure. among some of the underperformers, despite the markets are strongly in the lead today, you have norwegian cruise line, carnival, american, and united all of those are really lagging the market despite the fact we have a 500-point gain on the dow so far as for the consumer staples, check out what's happening with

costco there have been anecdotal reports of huge jumps in traffic at costcos over the weekend as people look to stock up on items. the analysts at oppenheimer say that could make a material bump for same store sales growth at some locations their v sha shares are up about 8% clorox and palmolive, b beneficiarie beneficiaries, also up big today as well. focus your attention on the one-week moves for the consumer staple stock, the energy sector, and the s&p 500. all of those are still in the red for the one week, but you can see here, we're seeing some nice moves higher. keep an eye on consumer staple, a trade you'll want to watch as the coronavirus fears play out in the next several days and week, jon. >> thank you a volatile morning still for stocks as some markets expected a potential aggressive

coordinated action from trajectocentral banks around the world dick, wondering first of all your thoughts on potential fed action, 50 to 75 points perhaps in march is that warranted? is that helping? >> well, i don't think monetary policy solves the problems that exist today. but psychologically, it is very important. and i think the fed will reduce interest rates for sure by 25 and possibly by 50 i don't think they will go to 75 until we see how things go over the next month or two. but psychologically, it's important, and they will move. >> we're just talking with ron temple from lazard who was saying that he sees this really aggressive drop that we've seen over the past few days as more of a sobering up than a panic. do you agree >> yes

you know, i felt the market was too high i was on this show in the past few months if and, you know, since late last year, and i personally sold a lot, and now i'm actually buying. i think it's sobering up and there are good opportunities there are many good stocks that were in bear territory last week and also at these low prices the yields on some of these stocks are great. i mean, last week you had chevron at 6%, british petroleum at 8%. those stocks were down 35% and cash is obviously worthless at the moment in terms of returns. bonds, i wouldn't touch a bond at this level. these are really good returns and you get paid to wait to see what happens so i think there are a lot of investment opportunities for stocks that have been hammered even more than the overall market >> why wouldn't you touch a bond at this level, dick, just

because of price >> yeah. i think if we get this solved i think we'll eventually get this solved, there's no question that bond prices will go up -- i mean go down, and, you know, you'll be a loser when that happens for a 1 pushs yie% yield, why t risk that you'd lose your principal by 30% or 40%? >> the popular theory today is we'll get some kind of coordinated action these headlines crossing right now, the g-7 plan a call tomorrow to weigh the response central bankers from the g-7 will join that call taabout the virus. can we put two and two together? >> i think fiscal actions will actually help the economy. i think that is more important in terms of actual impact on the economy than monetary. monetary policy is important

psychologically, but but the world's economy is not suffering because interest rates are too high getting them a little lower isn't going to help. but psychologically it's important but fiscal policies can be very helpful. i think governments will do that as well. even the fiscal policy of what you need to control this epidemic is billions of dollars that are needed. >> i want to mention the major indices, dow, s&p, nasdaq, up more than 2%, dow leading the three up 2.25% when you talk about buying stocks now, you had held off, even been selling when the market was higher. what's your filter, especially considering that we're heading into the uncertainty of an election season? >> well, there is uncertainty. so i'm buying stocks with high dividends with that good yield

so that even if they decline in price, they will eventually come back and in the meantime you can earn 4%, 5%, even higher on the stocks that i am buying. that's better than zero and cash eventually they will be higher even if they go lower. >> taking that long view appreciate that. thanks for being with us >> you bet we'll get europe's close in a few moments here s&p 3,012. mold mode h seema mody is here >> taking a look at markets, mostly higher with the exception of italy stocks in europe are attempting to rebound after losing about 8% last week as the number of coronavirus cases continued to rise across italy and europe in italy, 1,694. delta and american airlines have suspended flights to milan through april 24th that's raised concerns about the impact on italy's economy,

reliant on tourism, making up nearly 7% of its gdp for broader europe, tourism is 10% of gdp and accounts for about 30 million jobs. over the weekend in rome, italy's government unveiled a tim lus package and tax credits for companies that reported a 25% drop in revenue. big question, is it enough to help an economy already teetering on the verge of recession? goldman sachs revised earnings estimates from 3% growth to a decline of 2% in profits for 2020 when you take a look at the expectations for rates, money markets now say a 65% chance of after rate cut from the ecb at its next policy meeting on the 12th of march. carl, back to you. >> seema, thanks for that. sue herera has a news update at hq here's what's happening at this hour. the u.s. supreme court agreeing to hear a legal challenge to

obamacare in its term that begins in october nap means the affordable care act will continue for at least another year a decision on that case could be handed down by june of next year in paris, the louvre staying closed for a second day due to coronavirus concerns museums are not included in france's ban on large public gatherings, but workers at the legendary museum walked out after management failed to reassure them that the outbreak is being contained israelis are back at the polls for an unprecedented third election in less than a year prime minister netanyahu is seeking re-election despite his trial on corruption charges. opinion polls are predicting yet another deadlock and researchers say that they are a step closer to diagnosing alzheimer's disease with a blood test. scientists found certain protein levels were 3 1/2 times higher among confirmed alzheimer's patients than hair healthy peers. the test also is able to

distinguish between alzheimer's disease, mild cognitive impairment, and a form of dementia which is often misdiagnosed as alzheimer's. some progress being made on that front. that's the news update jon, back to you >> sue, thank you. as we head to break, let's take a look at the biggest leaders on the s&p this morning costco, twitter, walmart, clorox, apple, and they are gaining big. costco is up more than 8%. apple is up nearly 6%. ing the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium. 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.

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back to the volatility the dow up well over 500 points. our two guests join us guys, good morning >> good morning. >>. >> good morning. >> alan, you would argue that we shouldn't expect things to just bounce back to normal easily how should investors think about what we need to know about the coronavirus before people's minds get -- >> yeah, unfortunately, looking at virus data and, you know, we're all experts on the economic side rather than the medical side but i would say any sign that we

have clusters developing in, you know, a major city, whether it be western europe or in the uggs, is going to get this market pretty riled up and risk is going to take a knock i think we'll have to have confidence that the virus data improves really. it's got nothing to do with the economic data. we've seen backward looking economic data. we have to see the front ward looking virus data >> what does good data means i can imagine a scenario, the virus spreads but maybe it's not that fatal, maybe in the u.s. we're more prepared than people expected maybe this is, though certainly seriously, not the end of the world, so therefore we can go back to more business as usual that wouldn't be a bad thing, right? >> that would be hopeful thinking, i think, perhaps wishful thinking there's definitely a sense that whilst you try to contain the virus, that's when you have to largest economic effects you actually give up in terms of

containment, the economic effects might be more restrained, although the human costs tend to spiral out of control. there's that tension there >> alan -- jeff, sorry i wonder how you think about this and how the market is going to digest the continuing data that we get on coronavirus, especially as we understand what happens in areas like washington state, seattle area, san francisco bay area, which are such important seats of corporate activity do you think the market over the next several days starts looking for information specifically out of those places, about more tests coming online, what? >> i think, jon, the key for the market is going to be some sort of certainty i think looking at the data out of china, again, the lack of trust of that data, i think alan

mentioned the mortality of this disease. while initial numbers out of china pointed mortality to between 2% and 3%, other countries have done a better job at perhaps fighting this we also don't know how many cases people have gotten which have not been severe, have been quite mild, maybe even asymptomatic so i think if the market got the mortality rate down on this disease, that would be wond wonderful. certainly the flu in this country, the mortality rate is about 10 basis points, and if this virus were to be in the 50 basis points, 40 basis points eventually, that maybe not life back to normal but people -- maybe the fear would be taken away th i think that would be instrumental for markets to find a basing in here and i think a vaccination of all these types of things or even the ability to treat the disease more effectively would also be welcomed by markets.

these are things that are out of the windshield we don't know how far those are in the future, but history says these are all coming history also says these types of drawdown in markets to eventually turn out to be buying opportunities looking 12 to 18 months out >>eats we just said, no one knows how long it will take far sense of safety. do you think the rates markets are overplaying the likelihood of a recession >> there's a bit of a binomial distribution here. things could turn out a lot better but also a lot worse. there is a lot priced in in the short term, so fed funds, pricing in nearly 50 basis points for the next meet, the fed is unlikely to do more than that >> but you think they might do that >> possibly, really. given how few bullets they have, they're preferring to do 25 basis points, perhaps surprising

the market in terms of timing. the other central banks, bank of canada, rba coming up this week, more than 25 basis points price in for those central banks as well i can't see them doing any more than that because most of the central banks don't have much to play with. >> of all the statements we've gotten from powell, lagarde, did one surprise you >> no. i think that was exactly what was expected or should have been expected i think the g-7 finance comment that we should get tomorrow will say they're prepared to act. that's entirely, you know, a standard playbook in my opinion. then i think it's just exceeding the market expectations, which is going to be so difficult. >> finally, jeff, you say one of the things you're watching is consumer confidence. in this environment, what do you think is the key to that >> i think containment i think issues of certainly there's some hoarding that went

on over the weekend. i think the more the consumers can feel that our governments are in control, that this is not going to spread wildly around the country, will be a beneficial thing to consumers. right now we have more of a supply shock than we do a demand shock, but we are monitoring that extremely closely, and consumer confidence, which again is tied highly to retail sales, is something that we have to keep an eye on here as this plays itself out >> and the major indices still at or near session high, all up nearly 2%. alan, jeff, thank you. still more to come on today's attempt at stabilization. can we call it a rally at 600? i guess we can rick santelli, what are you watching >> you know, i'm watching the most recent grouping of data points and it's solid. but i know we have to go through a couple more sets of data points before we get a gps on e theconomy. that's what we'll talk about

after the break. it's a responsibility. emerson. consider it solved.

zou up 626, apple up almost 7% let's get "the santelli exchange." hey, rick. >> good morning, carl. this will be a tough one because in many ways people are asking questions like is this going to be an l-bottom, a u-bottom, a

v-bottom no doubt in my mind there will be a v-bottom here it's a question of exactly what is v what is the catalyst. consider this. what is the state of the economy before the virus the data points were good. we're now just starting a series of data points like the different regional indexes from the federal reserve like philly, like today's market, the pmis. these are real time. but durable goods, retail sales, gdp, all of the other big data points, even job, are going to be affected. the data we see that is going to be ongoing for a while is really somewhat tainted it shows us an accurate picture of the economy before the virus. that's the point, because now we have to go through two more cycles so we not only need to be prepared for the psychological issues of the information coming out from coronavirus but also

this long runway before we can sink our teeth into something we feel good about our investments. the next set of data points is going to show the deterioration we've been living through the last week and a-or so, and no doubt as we've seen some of the chinese data, because they were hit first, it is going to show some big dings but that's what the market has been pricing it's aware of that then we have to begin the cycle where the coronavirus effect starts to retreat a bit and therein lies where i think we get the right side of that v we've had days down a thousand, maybe a day today we're up a thousand but i envision many days we're up alot like last week in reverse, just because we are going to be comping that second set of data points to some very weak comps the next cycle is going to be weak and the cycle after that, that's going to be more expressive of what we can trade is going to show look-backs that are going to excite the economy and excite investors

in between then and now, mostly the markets overcompensate i've always thought the markets are like children. they throw hissy fits. they want what they want now they're binary all these calls for 50 here we are up 600 have you seen or heard any 50s around the globe the point is central banks get knee jerked into this. we look for some kind of feel-good feeling from central banks, but at the end of the day it's not what makes us feel good it's what makes the economies healthy. jon, back to you >> point taken, rick as we head to break, take a look at today's biggest gainers on the nasdaq, speaking of. jd.com, the chinese e-commerce and logistics supplier leading the pack costco, tesla, apple, western dig onth amg em

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seattle is home of amazon and microsoft and also the site of the first coronavirus deaths in the united states scott cohn has more on how the community is being impacted. >> reporter: good morning, carl. the second death announced last night, a 70-year-old man, a resident of this nursing home in

kirkland, washington, and this place has been the subject of so much of the activity and the concern. six of washington state's 13 confirmed cases of covid-19 come from the facility, another 50-plus people have been exhibiting symptoms and statewide about 260 people are being monitored for potential exposure or potential symptoms of the virus and the ripple effect from from all of this is considerable. just here in kirkland, 25 of the firefighters that may have come into contact with residents here have self-quarantined since this weekend. that's a quarter of the fire department here in kirkland, washington, and then it goes beyond that. schools have been closed and companies are also limiting nonessential travel. remember, this area is home to some of the most important companies in the world, names you know like microsoft, amazon, starbucks, alaska airlines and

f5 networks, which has closed its tower in downtown seattle for the day out of aabundance of caution according to a spokesman who tells me that one of the employees believes he might have come into contact with someone who may have had the virus he tested negative but they are completely disinfecting the tower and expect they will have people back tomorrow. the company postponing an analyst meeting that had been scheduled for this week. beyond that, tourism in seattle is a $7.8 billion. so far events have not been postponed yet. the next big one is the comic-con conference, scheduled to begin on march 12th with 25,000 people. they do expect that that will go on as scheduled. so here's where we stand the state of emergency declared by governor jay inslee, we expect to hear more from him later today about what they are doing to respond to all of this. it is a mixture of containment of the virus but also

prevention, reminding people about the basic hygiene we keep talking about and hearing about including things like washing hands, limiting nonessential travel and things like hat we of course are keeping a close eye on the business community here in seattle and all of these ripple effects as they continue to try and adjust to what may be a new normal, at least for now guys >> indeed, scott thank you. our scott cohn in kirkland not just microsoft and amazon warning on the virus our next guest is taking a look at how the outbreak is affecting all of tech from conference cancellations to travel restricti restrictions good morning to you both mike isaac, people are talking about south by southwest what do you think the mood is right now among corporate travel millions >> i can't imagine everyone is freaking out i'm supposed to go and a number

of other folks in the industry it's the thing making some of these conference organizers wait till the last moment is the amount of money tied up in sponsorships your reporter was talking about comic-con as well. i imagine a lot of people are excited to see start saying, ify start severely limiting whether some of these conferences should be going but, yeah, it is a lot of nervousness and a lot of waiting to see what other companies are doing. >> mike isaac, even beyond that, companies in silicon valley and san francisco are largely designed, those spaces, for the free flow of ideas and high contact. i mean you have got these open office plans you have got huge cafeterias with free food designed to keep people in the office are the companies going to have to change the way they operate and move day to day if they are trying to reduce the instances of more than 50 people being together >> 100%. i think -- i was on the phone

over the weekend talking with facebook employees, some apple employees, amazon employees. and then like you know, they go to even larger start-ups but smaller companies, coin base, the bitcoin and cryptocurrency firm released a white paper on a lot of the different practices and different phases of how they are going to operated. some of the things that i have been hearing are essentially moving in three different phases how they want to treat employees. first being employees who feel worried at all about being sick or at risk can call in and basically get time off as needed or at least telecommuting. then the second phase which i don't think we have hit yet is basically mandating work from home for people. then maybe a you confuse months down the line making it available -- easier to come back into the office. but it is a slow rollout for a number of these companies, and

they have started really with restricting non-essential travel and facebook just saturday said no non-employee visitors to any of their campuses globally >> mike santoli, we have a rally on our hands today the dow is up 2.5% the s&p and nasdaq not far behind but we are also thinking about domestic impacts of this largely, it seems that the markets are reacting to what has been happening overseas. >> yeah. >> how should investors think about that and the data points we are likely to get over the next few days. >> the market rushed down to a place where we built in a fair amount of likely disruption. i don't know exactly how much. it is hard to quantify, and arguably the market was always going to overshoot in the short-term and then try to figure out really it runs a wide range it could be several weeks of precaution and curtailment a government shutdown, plus a

tariff stand still combined but bubbles. something like that. some sort of relatively defined period of time when companies out of excess of caution take these measures then back away from them. to where we have to radically modify our growth expectations i think the market at the moment is largely trading in response to it self, just in response the how extreme last week was as opposed to really in a fine-tuned way handicapping exactly what the economic impact is going to be >> all right guys, we'll see i mean that's the last point you made, mike, the wealth effect of just stocks alone is a story. >> yeah. >> and a point of uncertainty. mike, guys, good seeing you. we will talk to you in a little while i'm sure >> appreciate it. we are getting a state out of the international monetary fund on the coronavirus. steve leishman has it from headquarters. >> a joint statement from the

imf and the world bank saying they stand ready to help member countries with a response to the coronavirus saying they are actively engaged in talks and will use all available instruments to the fullest extent possible. they are saying they havee emergency financing available along with policy advice, technical assistance as well among the vehicles available for the imf to help are things like a rapid credit facility a rapid financial instruments, debt rely, loan modification and even new possible financial gremts or arrangements that countries can apply for to the imf also worth noting, jonathan, they are calling for international cooperation to deal with the health and economic impact of this virus. carl >> we will see what this g7 call is like tomorrow steve liesman, back at hq. dow is up 725. we held the s&p 500 to 3k and

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julia? >> jon, that's right the investors looking to oust jack dorsey sending shares higher, up 8.5%. elliot management is concerned about dorsey splitting his time between twitter and square and his plan to spend months this year in africa a source tells us elliot has taken more than a $1 billion stake in twitter, roughly 4% of the company and nominated four new directors for the board. now, twitter and elliot have no comment but a source tells me that talks between twitter and elliot have been productive. now, elliot can target twitter, unlike facebook and snap, because it has only one class of stock, and dorsey does not have voting control of the company. between when dorsey returned as ceo in 2015 and this this is friday, twitter shares declined by 6%. the stock did plummet more than 20% after reportingis did appointing third quarter earnings back in october

last month it reported its strongest quarterly user growth ever evercore weighing in on elliot's move this morning. the analyst upgrading twitter to in-line and raising the price on the stock to $33 this could increase the probability that twitter is sold dorsey canceled his speech at south by southwest as the company banned all non-essential travel >> even as you said that, british airways cancelling flights from the uk to the u.s. to match reduced demand due to the coronavirus. and even some short haul from london to italy, france, and so forth. dow is up 740 here as we -- it is going to be a crazy week, between the g7 call tomorrow ism services numbers are going to give us an idea how the

consumer is responding. >> based on last week the way this week started, this is not one of those weeks -- apple is up nearly 7% this morning, a lot more than the other large cap tech names like, say, a microsoft, which is up just 4% but apple also suffered more than others over the past week. >> judge has a big show with tuesdaya on ge let's get to the half. >> carl, thank the selloff on your money front and center as always welcome to the "halftime" report i'm scott wapner our investment committee, steve weiss, josh brown, shannon saccocia, tom lee, the head of reference at fundstrat, john kri sin ski, steve liesman, mike santoli, volatility, the word of the day. stocks had those wild