5 g is not going to be pushed back because of the virus we saw today. walmart announced they're exploring with at&t. >> want to make note as well, the dow is up 800 points the 10-year note yield is recovering as well keep your eye on both. i know you will now in the exchange welcome to the exchange on this monday. riding to the rescue, stocks are up huge today as incesters wi-- investors release earnings is this a one day bounce or the start of a turnaround. we'll speak with jeff curry about that there's a record amount of trading in 401(k)'s right now, we'll get you the numbers and have the latest on the robin

hood outage today. we begin with this big rally and bob pisani has the numbers for us >> we are at the highs for the day, up almost 800 points. and i want to show you a chart of the dow futures prior to the open here, we went from 26,000 earlier on, to 25,000. a 1,000 point move in about 3 hours, back to 26,200. you just don't see that very often. in terms of what was really moving, take a look at the dow movers they had the stuffing kicked out of them last week. visa, look at microsoft, microsoft has regained not quite, but almost half of the losses in the last week and a half or so one sector really not participating in the same way is some of the big bank stocks. somewhat flattish compared to everything else. extreme oversale conditions, and

hopes for fiscal and monetary stimulus around the world. >> we'll dig into that in a moment >> let's turn to rates now 30 year yields hitting fresh record lows. now we're seeing a bit of a rebound. we almost went below 1% on the 10 year earlier. >> we certainly did, let's start with the short maturities. now, for today, 82 is about the high yield in our time zone. it got down to 70 pretime zone this is an important area, as you see the deterioration, we are grabbing as kelly referenced. look at 24 hours before our time zone, we were down to 102, now, here we hover 108 and it isn't a bad trade, we've been between 106 and 108 all session, we're down 6 basis points. look at boone yields from july today it got down to minus 68, hovered around minus 62 for the

close. dollar index this is one of the biggest down days i can remember in a while look at that week of the dollar ind index. year to date, we settled at 9638 last year we're approaching 97 even after that big slide, we're still up a bit on the year, we want to pay attention to that 2019 close >> very busy day here, we appreciate it. rick santelli at the cme let's get to the latest in the corona virus outbreak. meg terrell is here with what we know at this hour. >> u.s. case numbers are mounting now that state and local labs are gaining their own ability to run tests there are 44 cases here according to the cdc, officials closely watching an outbreak in a nursing facility, while new york also confirming its first case governor cuomo saying today,

community spread is inevitable the world health organization saying, it's not yet a pandemic, noting 90% of cases have been reported in china. it will not hesitate to describe the situation as a pandemic if that's what the evidence suggests we're going to see pharmaceutical representatives at the white house for a meeting on vaccine and drug development. >> meg, we were just discussing as we pay attention to all the economic data. tomorrow's super tuesday i mean, talk about an event that's going to bring people into crowded places. i wonder if that will hurt voter turnout, it's going to be tough to tell, but it's a factor we weren't anticipating >> definitely not. and we already heard from the chicago board of elections i don't believe they're voting tomorrow, i believe it's later in the month of march. certainly people should be

washing their hands, using hand sanitizer, if you're sick. consider what you're going to do people are going to be thinking very closely about it. >> and watching for any signs of -- >> i read one thing that said, look for signs that people around you are sick. >> everybody's sick, it's cold and flu season >> exactly how are you supposed to tell >> meg, thank you. we appreciate it there is a huge rally on wall street today, why investors are betting on several rate cuts from the fed to calm markets. take a look at these probabilities. there's a 15% chance of a full percentage point cut now, and today we're also learning that g-7 central bankers are making a call tomorrow to discussed coronavirus spread joining me now, brian and jason.

jason i'll begin with you, these rate cut probabilities are huge now. i mean, do you expect that big of a cut coming in a couple weeks time and what do you think of tomorrow with this g-7 call? >> i'm surprised at the magnitude of the cuts that the market is expecting, but i have to say, i'm also a little surprised that the fed hasn't cut already. especially given what happened last week. and i think it's not necessary that it would modify or mollify some of the economic or the health care concerns, but it would ease financial conditions which have tightened pretty markedly up until today. the risk reward for the fed is much more designed for them to ease rather than them to stay tight here >> let me ask you, you're such a thoughtful knowledgeable guy, i need you to help enlighten me, why would it not be better for president trump to come out tonight and tomorrow and say, we're doing the hong kong thing, we're doing thousand dollar

checks for americans, we're going to give you a break on your income taxes, we're going to do a payroll tax cut, we're going to help people who are in trouble because of this. wouldn't this have been a greater efwekt -- there's going to be nothing left to cut if they go this route if they do, it's not clear it would work >> i think it would ease financial conditions, it's something you can do immediately. there's a lot of things the administration would do. i think there's a role to play we looked at 9/11 as some proxy, there's no perfect -- i think if you look at the postmortem on what worked, what allowed that to be a relatively short lived hit to the economy, when you shut down transportation, the financial markets, was a coordination of fiscal policy and monetary policy. monetary policy was credited as having the most immediate impact it's not a cural

i understand why the fed doesn't want to ease more easing could do more harm than good. given the coronavirus, it seems to me there's very little risk of them over easing. >> it was interesting your views on in market, i wasn't sure how to feel about one of your picks being a debt collector tell me what you have think of the impact of coronavirus, and where investors should look for opportunities. >> certainly, so obviously we're looking at relatively unprecedented circumstances with the corona virus it could -- probably will get much worse before it gets better and so we expect we're in for some short to medium term economic pain. but at the hennessey focus fund, we try to take a long term view in investing what we're focused on in an environment like this, is not trying to predict the direct economic impact in the short term or market impact.

but how are our businesses going to fair through this environment and what does their long term prospect look like we're reanalyzing, what do our balance sheets look like what's the persistency of revenue growth and demand at the businesses we own, and importantly, what is the supply change look like for these companies. we've got a handful of companies we think are positioned for what might be a difficult economic time or also pretty well positioned if things pass without much pain >> those include encore capital. american tower, o'reilly automotive which is an interesting play my final question to you is, would you then -- looking through these companies, exactly the way that thorough investors should be looking at them. would you prefer to see a monetary response here or something that could be more targeted in terms of a fiscal response what would make you feel most

comfortable going-forward. >> i think it's important to roid we're still relatively early in the unfolding of how the corona virus is going to play out in the u.s. and globally, i would be hesitant to rushford too quickly with strong fiscal or monetary response. in fact, i think too strong a response, too much alarm might cause more damage than it does good i would be measured in my pace of response. >> how much of today ace rally is because biden won in south carolina >> i don't think it's -- that much i think it has a lot more to do with the g-7 call that's going to be tomorrow and the expectations that there's going to be some coordinated response among the g-7 countries. >> so there better be at this point? >> yes >> we'll see if mr. sanders wins, we'll have another something else to worry about.

>> by the way, what response are we talking about now that central bankers are going to be on the call, are people looking for a coordinated cut? >> i think competence and confidence along with the passage of time would do wonders. i think there's certainly a little bit of a sense of panic last week, i think central bankers and policy makers have done a pretty good job thus far. i think some sort of sense that there's vigilance of what's happening in the financial markets would go a long way. i'm hoping for a cut, but i think a strong statement will is a face for now >> great thoughts from both of you today. i appreciate your time talking about the markets here on this big rally. we have a news alert from the white house, let's get to ayman javers >> according to senior administration officials they're

going to take action against chinese propaganda outlets this follows last month when we saw the chinese government expel a number of wall street journal reporters from china today telling reporters they're going to take two steps regarding those employees of changeease state media organizations operating in the united states one is, they're going to cap the total number of those employees, among the five different chinese media outlets that operate here, they're going to require them to reduce their number of reporters operating in the united states and the other thing, they're going to impose a duration of stay limits on some of the visas issued to the chinese media outlet reporters they will at some point in the future reapply to be given an extended visa once they hit the time frame not saying what time frame specifically yet, they're going to impose on those chinese state media reporters here an effort as the white house calls it to achieve reciprocity in terms of how the chinese

treat u.s. journalists who are operating in china, but also a response to that wall street journal action that we saw the chinese government take last month. >> when they saw them react after an op ed. coronavirus is taking a major toll on manufacturing in china. it was the sharpest contraction on records according to today's pmi survey. official government data over the weekend showed a record slow downin services and manufacturing in the country despite all of that, my next guest says china's gdp growth will be sharply negative in this corner joining me now an asian economist at the american enterprise institute good to see you. there's been some time, and what is your thinking about how severe an skpek impact the corona virus has had in china. >> so background health on which i'm not an expert, if the

chinese are at least reporting the trend right, they could have the number of cases too low. if the trend is right, the health impact of the virus is fading it's been terrible for the economy in the first quarter, you can't get a positive result, a negative result is at least 2, 2 1/2% it's probably worse than that. you see chinese firms trying to borrow like crazy, the chinese government accommodating them. bond issues any more but if it's the case that the virus is burning itself out, which we all hope for. the economy should be sharp, and it should occur at some point starting in the second quarter the capital stock, none of those are changed. if you're focused on first quarter results, they're going to be terrible much better than the chinese government -- >> you're in the v-shaped recovery camp, this is going to be the debate that plays out all year prior to last week, it seemed that many in the u.s. were as

well now we have people thinking lower for longer based on your point of view, should things rebound here more quickly as well, or is it that we're going to face a longer period of time of rolling cancellations of events. school closures, the things that could further depress activity >> let me say, i'm an expert on the chinese economy not the u.s. economy. if the chinese economy has this v shaped recovery, we've seen the stress beforehand and we haven't yet had the impact on our economy yet. the market is showing that they're stressed because they've seen what's going on in china. the impact on the economy hasn't started. it's going to feel like a long time for us. even with a v-shaped recovery in china. productivity hasn't changed. and productivity is what drives medium term economic growth. >> what about hong kong, where we're seeing pretty innovative

measures direct stimulus to citizens. i think some forgiveness of electric bills is it just china, where you're watching in terms of the biggest hits to the global economy on this or should we include hong kong in japan and some of the other biggest economies in the region? >> well, i think where you would be concerned is something that compliments in a bad way the chinese hit. and hong kong is a financial compliment it could affect credit and japan and south korea are supply chain compliments those are two major outbreaks outside of china that's going to disrupt the supply chain for longer. the outbreak in south korea comes after the outbreak in china. we could get china back on its feet in may and still be facing problems in south korea and gentleman participate. areas that are going to unfortunately compliment the chinese blow to the global economy. and that's in east asia p

>> thank you, sir. 401(k) trading activity hit a record at the end of last week what changes are investors making, and should they be making any changes at all? more on the supply chain fallout from the corona virus. two ceo's will weigh-in on how their businesses are faring. take a look at the tech spider etf today, it's up over 3% apple is leading the way up more than 6% and on pace for its best day since december of 2018 as we head to a quick break. don't forget you can watch or listen to us live on the go, on the cnbc app the cnbc app the exchange is back in two. and a trade desk full of experts, available to answer your toughest questions. and i see it with zero commissions on online trades. i like what you're seeing.

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welcome back to the exchange let's check on these markets right now. a strong rally on wall street. we tauped out with a gain of 800. we're up 657 right now a 2 1/2% increase has us above 20,000 we'll continue to monitor all of that new data shows that trading activity and 401(k) plans reached a record high on friday. investors rushing to reposition their portfolios after last week's selloff ignoring that old adage of staying the course when it comes to retirement savings. for more, let me bring in rob austin our own sharon epperson is here

as well. >> we'll start with you, what can you tell us? what are people buying and selling? >> thank you so much for having me >> last week truly was an historic week for 401(k) traders and investors. what we saw last week, the volume increased by the time friday hit, it was 16 times an average day. people were leaving equities and leaving too fixed income it's clearly a reaction to the market correction. >> do you hear that and get concerned? >> i'm not trying to call whether bond yields can go lower, they have defied saying whether they can go lower for years now. what do you think when you hear what people are doing? >> it's worry some that they're making these knee jerk reactions, it's important that they're looking at their 401(k). some people never look at their 401(k) this is a wakeup call. what they should be doing is when you retire. you have such a long time, you should be invested, staying the

course 80% stocks, 20% bonds. and you should be checking that asset allocation, and making sure your contribution rate is higher than it is right now, you don't want to miss that free money with the match see what you're contributing as a percentage and make sure you're taking advantage of the free money. >> is there anyway of knowing what age breakdown we're talking about, where people buying bonds, those closer to retirement or those with a long time still >> it was across all age demographics last week was truly historic, in that we saw last week's trading activity was higher than we saw in the fourth quarter of 2019. it was across the board, kelly >> it's not, i don't like responses that won't allow people -- if you want to do that, you want to do that, but

it is interesting that this surge of activity could comco incident with a near term bottom we'll see. i don't believe that this -- the old saying that this is all dumb money, i don't believe that. people are often smarter than we give them credit for, but are there any recommendations? >> they haven't been better looking at what they're supposed to be doing with their money or their initial intentions making these knee jerk reactions, it's not uncommon when people get emotional, they make these changes when i made this decision, i later regretted it and a lot of these people are people who know something about the markets, they're following it at least. they went with their gut, instead of what their goals are. also those who were like, let me just cash out right now, take a withdrawal, think about the early withdrawal penalty, if you're under 59 1/2, it's going to cost you, the taxes you're going to have to pay on that money, you don't want to do that you don't want to forget what

your financial goals are if it's money outside of the 401(k) and money you may need now or in a couple years, it should have never been in the stock part of your portfolio >> yields are so low we talk about the ten year going below 1% the kind of bonds people would traditionally be buying. obviously if you're holding to maturity, a little different story. >> a lot of advisers think value funds are a way to go. you don't want to have too much there. if you have a long way in retirement, you need growth. for that, you're going to be invested in stocks >> rob, is it quieting down today? >> so far, we haven't seen exactly what's happening we're keeping our tabs on this one, it should be pretty interesting. >> rob austin, we appreciate it. with the light solutions thank you as well. >> as the market rebounds today from its worst week, the free trading app is experiencing a

system wide outage that's impacting more than 10 million users. let's get to kate rooney out west with the latest on this >> a widespread outage at robin hood is forcing its traders to stay on the sidelines today. they identified the issue. as of a few minutes ago, they can't make trades. this isn't the first glitch we've seen at robin hood they found a way to trade with unlimited margin fidelity, charles schwab and td amareritrade were experiencing issues last week robin hood apologizing to users on twitter, but getting plenty of questions over if and when they're going to compensate users for any losses due to the outage >> i imagine there are people saying, i wanted to buy apple before this 6 or 7% move and i couldn't >> we looked at some of the top

stocks on robin hood last week you had virgin galactic, and a few of those stocks are trading at 50 or 58% of their trading volume some on twitter are speculating that could be due to millennials -- we'll see when they open again if that's the case >> that's a great point. kate, we appreciate it tough tough day for those trying to get to their robin hood accounts there's one commodity out there that is immune to the corona virus take a look at shares of twitter, the stock is soaring about 7.5% today on reports that elliott management is taking a stake in the company. the activist firm is seeking to place dorsey because of the tension between twitter and square

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should you buy, sell or sit tight? some strategies to get you through the turmoil. welcome back, the business world is remembering one of the most iconic ceo's of the 20th century today. jack welch passed away today at the age of 84. he was a railroad conductor's son who rode the corporate ladder to the top of one of the

largest corporate conglomerates. >> he's been called a white collar revolutionary from working class massachusetts kid, to ge plastics engineer to ceo. he took an old line industrial company by the throat and through ingenuity, vision and sheer force of personality, turned it into a global leader of finance, media and high-tech health care. during his 20 years of running general electric, jack welsh drove the company's market value from $14 billion to more than 400 billion. he was called neutron jack a name he hated after cutting more than 100,000 jobs during his reign. he streamlined ge, establishing a blueprint for other ceo's along the way. he slashed payrolls, closed factories and shuttered or sold

ge subsidiaries that were not number one or number two in their industries >> a role for the mediocre is one that is short lived >> a visionary who speer headed ge's shift from manufacturing to financial services and numerous acquisitions and always pointed out he made his best deals on the golf course ge dove head first into the media business welsh sold almost everything else but he kept nbc. bob wright was named president of nbc and in just three years, the network made its first foray into the cable industry with the consumer news and business channel. cnbc welsh's decision to spend more than $150 million to buy financial news network was key to cnbc's later success. >> it's no different than any

other game and what we had to do was to take it from being a dry text in paper to the locker room if you will to show what the game was all about, how the winners felt, and how the losers felt. that's what cnbc was designed to do >> welsh was known less as a cost cutter and more for his dynamic management style he pioneered in formality in the workplace. abandoning management brewer crasscy. a demanding but passionate leader, welsh emphasized the value of candor, he encouraged employees to speak up, to be up front and to work hard >> good corporations create a healthy atmosphere where people can thrive and grow and benefit their families and have great lives. i believe that to my toes. >> a man of surprise, he often unexpectedly stopped in at ge plants and offices or sometimes

in the newsroom. in 1999, fortune named jack welsh manager of the century before stepping down in 2001, he set up an internal succession race for his job, calling the choice the most important decision he would ever make. the company struggled in the wake of the 9/11 attacks and the financial crisis of 2008 which was devastating for the lending unit that welsh had dramatically expanded while he was ceo. welsh retirement turninged out to be anything but, he continued to lead the dialogue of modern business as a management guru who concentrated on winning and never looking back >> how can i have a regret i'm an irish kid from salem who ends up with the greatest job in the world. and i was trying to make $10,000 to live on i had a great run. >> and his wife suzie sending the following statement to us. more than anything else, leader,

business icon, management genius, more than those things, jack was a life force made of love, pure, bright, diminishable love, his brilliant curiosity about everything on earth. they added up to a man who was super human, yet completely hume around at once he changed the world by touching people deeply and authentically, helping them see and reach dreams they couldn't imagine for themselves and somehow he also managed to be the greatest husband and stepfather who ever lived. giving our family 20 amazing years of adventure, happiness and joy. our hearts so much larger and fuller having known and loved him are broken that's suzie welsh i'm joined by sue herera who worked with and for jack >> i knew him for the 30 years that he hired me along with bob wright jack was one of the first people that i ever met when i joined

cn cnbc and passion is who he -- he just had the most amazing drive and passion. and it was all about winning, that was the goal, whatever task he gave you, you had to win. and the worst feeling in the world was letting him down you just wanted to crawl under a rock and not come out for about 20 years he gave you everything you said you needed to do whatever that job was. there really was no excuse for not succeeding and not delivering it was all about winning for jack >> any stories you're thinking about today? >> he's the one that sent me to china, and russia and india and japan to do documentaries about the emergence of those economies. i don't think i would have had an opportunity to adopt my daughters from china if he hadn't sent me

i used to joke with himp i said, you're responsible for my kids he would say, do i have to send them to college? that was a typical jack response he basically would drop by unannounced. and walk-through the newsroom and just see how everybody was doing, even though he was running general electric, cnbc was very important to him. he viewed that as a way to tell financial stories, successes and losses he loved being in the newsroom, he was very approachable much mother approachable than people thought he enjoyed the represent arte. and you were encouraged to push back on him. you usually didn't win, but you were encouraged to push back >> for a guy whose mantra is winning, he usually got the last word

>> he wanted you to challenge him. >> like you said, touching your family in so many ways >> yes, absolutely >> we'll be right back at fidelity, online u.s. stocks and etfs are commission-free. and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads in value while our competition continues to talk. ♪ talk, talk

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and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. welcome back to some breaking news on the race for the democratic presidential nomination >> amy klobuchar is suspending her presidential campaign. and announcing she will endorse joe bind klobuchar will fly to dallas tonight where she will appear at a rally with the vice president and this is just another sign that joe biden appears to be having some momentum in this race after his decisive win in south carolina, she's the third candidate to announce she's dropping out in recent days, this is increasingly looking

like a two-way contest between joe biden and bernie sanders with amy klobuchar dropping out of the race. >> tomorrow is super tuesday, now we have pete buttigieg and klobuchar dropping out to try to coalesce support is there going to be any impact from coronavirus, people not showing up from the polls. having more absentee ballots than they would have a few short weeks ago. >> one thing that's important to remember is that california and colorado have been allowing people to mail in their ballots for quite some time now, it's going to be interesting to see what happens to those people who voted for buttigieg or klobuchar previously we'll have to see who ends up turning out to the polls we heard president trump say he expects his rally tonight to be completely safe and that folks should not be afraid to come out. certainly with these new concerns, that may put a damper on the vote, we'll have to wait and see.

>> elon, thank you it was a wild ride for commodities in february, along with everything else oil ended the month with its worst week since the financial crisis my next guest says we're facing the biggest hit to oil demand in more than a decade let me welcome in jeff curry he's in london jeff, it's good to see you how much worse do you think it's going to get for the oil price and for demand here. >> well, i think it's hard to take a directional view on oil right now, given the fundamental uncertainty. as a result, we don't like the risk reward for going out there with the exception of gold, which we're positive on. >> one thing to keep in mind is that they're spot as 99s they have to reflect today's supply and demand fundamentals, financial markets are

anticapatory assets. the worst demand shock since '08, '09 we would be a seller of most rallies. >> but we do -- there are ways of looking to see if the curves are up or down shaped let's say, what do you see when you look out there. has most of the damage to the oil price been priced in now or do people think the price is going to keep drop something. >> well, actually, commiditities are the opposite of what you would think about the expectations -- when the forward curve is upward sloping in a commodity. it means you are building inventory. you would have to buy the commodity today, put it in storage, you have to have a higher price in future to pay for that cost to carry we look at oil the first two contracts are backwards in the front end as you look out over the curve, the rest of the curve is in a tango. this market is in a sur plus

when we start to look out 6, 12 months >> it's encouraging people to build inventories right now, that means going-forward, we're going to have more supply than that demand is dropping off. we've hit 43, i think on the price of oil over the weekend, that's still too high? what looks economic to you, in the 30s, lower >> in terms of thinking about on a brent basis, we thought it would be in the low 30s to high 40s. i think the key here is that the fund amountsal uncertainty about this, in the extend of the demand damage is still very high we're watching china, ex-china and opec china, the worst situation is behind us. we think the total demand hit in china was somewhere around 3 million barrels per day. we're seeing restarts in

economic activity in china, the problem is, know contagion has moved to the developed markets and we don't know the extent of it, which is why we would be careful at calling the bottom right here >> how high -- the all time high was $1900 several years ago. are you seeing us go above that level? >> our tarring set $1800 an ounce right now. versus the 1900. one thing to keep in mind, the dollar is near record strength, when we hit the 1900, the dollar was near record weakness, which tells you how strong gold is today in the $1600 an ounce range. there's three things we're watching on gold the first one, you have a lot of central bank easing. we like to call gold the currency of last resort, when you have 9 out of 10 of the g-10 banks easing, you're going to

have dedollarization central bank demand remains high we don't see that changing any time in the near future. the third reason we like gold, it has to do with the best hedge for geo political risk of any sort that we're seeing right now. that's the one commodity, we have a strong directional view we want to be long here, and we're trading 1600 with the upside target of $1800 an ounce. >> 1800 for gold and maybe high 30s for wti? >> on brent, i'm comfortable saying in the 40s, when we start to go down, the differential starts to contract so let's say that the low 40s on brent. and if the differential stays where it,you're talking in the high 30s >> it's great to have you again. not often the people -- the stuff you're covering, you're not bullish on, if you know what

i mean it's great to see you tonight. >> bullish on gold >> exactly you found one in there thank you, sir china's manufacturing activity did slump last month as corona virus shut down activities we'll see how they're dealing with the outbreak. and take a look at the best performing sectors right now they're real estate, technology, energy and financials. all 11 sectors are higher, and we'll have more on this rally we'll have more on this rally straight ahead we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at een issues become , focusing core strengths to create a better world isn't just a result, it's a responsibility.

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in the aftermath of 9-11, he steadied and rebuilt america's largest city. oversaw emergency response to natural disasters. upgraded hospital preparedness to manage health crises. and he's funding cutting edge research to contain epidemics. tested. ready. mike: i'm mike bloomberg and i approve this message. welcome back to the exchange the corona virus outbreak in china is shutting down chinese factories and wreaking havoc on supply chains. for more on this ripple effect and what it will mean for the u.s. economy i'm joined by the ceo of echelon fitness. both of these gentlemen depend on china for manufacturing their products >> what can you tell us as i read here at some points, the supply chain has been entirely

shut down, how is the product availability looking for you right now? >> the coronavirus happened during chinese new year. it extended the chinese new year and kept everyone out of the factories. the good news factories the good news is we got our first shipment last week so shipments are are starting the to move you have all these different suppliers and some are not coming on yet but they are starting to come on board so it's getti inting much, much ber we'll see about a 30 day lag time >> but no major shortages. not dealing with price changes >> no, fortunately, we prepared for demise new year. we always stock up with heavy inventory. we thought it was fortunate it happened during that time frame. >> echelon is a high-end product. hate to compare you to peloton >> we're $2,000 half the price

of our leading competitor, but we haven't seen any problems the biggest concern we have are the trade shows. a lot of them are being canceled there's a show in taiwan that's being canceled and one of our leading customers is not going to the fitness show in san diego. business opportunities going to be lost. >> josh, you're on a much different end in terms of the price spectrum these are toys one reminds me of ma kros game both this pop and pass and bi birdie golf, could they be helped because you have some availability of this product. >> yes, before i get to that, you heard it first on the exchange, christmas is not canceled there will be toys for christmas but there were short-term challenges in terms of delays on outdoor toys for summer, that would be shipping now and a month to six weeks would be on shovels.

so there's a delay in outdoor products so some of the largest retailers are reaching out to the suppliers here say iing hey, who has domestic inventory that has inventory available? >> that was my coincidence >> because the outdoor summer toy market was a new area we wanted to go into. so we're sitting on a warehouse full of product in portland. >> so let's talk about what you're seeing on the ground. when our producers first spoke with you, you said your factory was running at only 15% of capacity and you're up to where now u? >> as of now, today, about 50% capacity there's challenges with a lot of the sub suppliers delivering everything from the screws you need, blisters, packaging materials, all these extra things you need to finish your product. there's delays there we're seeing about 30 to 60 days same question for you. you're more price sensitive.

trying to keep the prices down maybe you have plenty of cushion. are you deal iing with price spikes are going to have to pass those along and are you dealing with delays and a lack of supply that will be coming in the months ahead of us? >> we in general plan on keeping prices the same. probably need some margin loss on our side, for christmas, which is the -- it should be fine >> what should you say people need to know about what's happening in china right now. >> well i think the chinese unlike you've heard from a lot of people, i think they've dealt with this tragedy pretty well and put a lot of systems in place. when i've been going since sars, you get a temperature gauge on your head. you can't go in unless, they make you remove your hat we put those systems in place in our factories.

everyone has the cloean their hands ch we disinfect the factory once a week. clean door handles every day also the we chat on their chat thing where they're making people not go into certain areas. >> we have to to go, josh, i just want to ask you if the slowdown comes to the u.s., is that a bigger problem for you at this point >> again, because we have most of our products here we're in a good position where we can continue shipping. amazon for both of us is a big channel pr us to get product to the consumer so i think as long as amazon is running, we can still sell them. >> get those delivery guys out there. >> thank you both, really appreciate it. much more robust view of what's going on well the dow has shed 4,000 points in the past week, but post iing a big rebound today as investors bet stimulus is on the way worldwide. is this a real turn around here are the best performers on

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the dow was up 815 up about 690 most investors are betting that central banks around the world will be riding to the rescue so is the a real turning point steve grasso, stewart frankel and cnbc contributor steve, tough to try to call the bottom unless you feel you want to go that direction >> i don't feel comfortable anyone should be calling a bottom yet i think that was a near term bottom but when you lock at the overall market, we had a penchant fund rebalance on friday and there was a huge amount of stock that needed to be bought. i think you're seeing the aftereffects of that and the predominant effect of the g7 meeting you were talking about >> there's a lot priced in in order to get today's rebound,

we have to price in 75 basis points of fed cuts in two weeks plus some kind of coordinated central bank action tomorrow how much disappointment might there be if they don't deliver >> i think that's the big question mark. i think the other big headline is president trump trying to get the pharmaceutical companies p, the drug kanes to kind a put a hard press on developing a vaccine or developing treatments and also the pressure that's going to be put on our fed to do somethi something, there's a lot the bears are going to need to contend with over the next few days but i believe the mortality rate, although it's terrible people are suffering from it, still not something the market should be factoring in when the world was looking at 2 to 3% mortality rate, we heard from a guest this morning it's

probably .2% to .4% so it's just a worse flu and i don't think that the market should be factoring many this much to the downside if tas what we'hat's we really battle lg with. >> steve, good to see you. thank you, sir that does it for the exchange. i'll see you on "power lunch." >> stocks are surging. investor, they are hoping central banks around the world will keep money cheat and help ease credit. the dow up 730 points. now this move denting a bit of the damage last week we'll have your playbook for what's next. and the markets, they may got ut u u9 problems but a rate cut is not one. investors pricing in a nearly 100% chance of a 75 basis poin