that's probably prudent. but for most people, just sticking with it is probably the appropriate course of action here >> saying that as we watch the ten year note, yield, hit 0.962% thank you all. we'll see you again, sir peter, thank you for sticking around and with the dow down more than 800 points, that does it for the change today. over to tyler. >> thank you very much we start this hour with breaking news or maybe it is broken news. in part because of what's happening in the economy and the markets but also in light of the fact of what happened was about three hours ago. the federal reserve making an emergency 50 wbasis point or hal percentage point rate cut saying the coronavirus is an evolving risk to the economy but it is not exactly the shock and awe that the fed was looking for from a move we haven't seen since the financial crisis far from putting a floor under stocks, stocks seem to be falling through that floor take a look at the market. the dow giving back a big hunk

of yesterday's huge gains. we are near the lows with the tou down about i8 0 points we went lower as the ten year yield hits a fresh record low as kelly just reported. braeg i breaking below 1% for the first time ever now at 0.972%. let's get to steve liesman for the more on the fed's emergency rate cut >> thanks very much. the historic 50 basis cut emergency cut, the first since the financial crisis, not greeted warmly by the market critics condemning the rate cut bringing the rate cut to a new range. won't do much good to combat the economic effects of the virus u. hfe writing they don't believe it's constructive in the supply shock induced by the coronavirus outbreak and responses to it jay powell in his press conference pushed back against the criticism. >> we do recognize that a rate

cut will not reduce the rate of infection, won't fix a broken supply chain we get that. but we believe our action will provide a meaningful boost to the economy. more specifically, it will support accommodative financial conditions and avoid a a tightening of financial conditions which can weigh on aungtivity and help boost household and business confidence >> of course the downdraft could be u a sign that the fed needs to do much more. they hope to have an effective interest rate and one sign could be the rise in home building stocks what the fed does next depends on the data. if the situation worsens, more rate cuts could be expect d. remains to be seen if the president and congress step up to write any fiscal -- >> what does history tell us when the fed makes a dra mmatic cut like this of half a point intermediate what happens next? they cut me?

>> they have tended to cut more. there was a 75 basis point cut after 9/11 and that was just in response to that i believe they had cut earlier then they went to a series we have some historic charts in the back i don't know if they're loaded into the machine there same thing happened with the initial rate cuts from the financial crisis there were a few i think they went from 3.5 down to zero and stayed there for a long time. in general, look, i don't think history is instructive, but not necessarily showing the exact way here in part because there are some of the ore emergency cuts the fed has done in the past, but those have all mostly led to additional cuts after that >> yeah. >> all right steve, thank you very much >> it has been a wild day in these markets. whether the it's the stock market or treasury yields, after that emergency fed rate cut, the dow has swung u more than 1,000 points today bob pisani is at the new york stock exchange with the latest >> a lot of confusion about the

right way to move the movement here you see the move. it's a 700 point move. that's that crowd. then another opinion came in down here as we move down over 1,000 points, people saying they're maybe overreactinging or panicking. but for the moment, the second opinion is what's winning. it's not just to fight the quality in bonds there's a whole lot here the gold stocks for example, gold's having another great day. back up to where it was near the highs. you see the move up in the gold names. another group is the home builders that's understandable. home depot was up, but slight moves up here. these were up earlier here elsewhere, what else could you do there's a lot of talk about fiscal stimulus. infrastructure programs. so we've seen a little bit of a move up in these infrastructure plays. martin marietta, vulcan, jacobs engineering was up earlier, flat here, but those are interesting they're holding up well. elsewhere, banks doing nothing

never really rallied here. but you can see it right near the lows of f the day here, but what is the market trying to tell us? you should hear some of the conversations i've had with confused traders the shock and awe from the fed is going to be limited not going to get the response they wanted here how long until we get an earnings rebound is this a second half of 2020 phenomena or are we way into 2021 because this gets a lot more serious that's what the market can't answer right now and that's what everyone is grappling with guys, back to you. >> thank you very much, bob pisani the ten-year yield sinking the record lows. dropping below 1% for the first time in history. rick santelli tracks the action for us as he always does at the cme. hi, rick >> hi, tyler just to give viewers and listeners a little perspective, right now, a two-year note yield is down 24 basis points and a

ten-year note is down 21 basis points today it settled at 116. it's at .95. earlier today, it was at 114 before the fed cut interest rates and obviously the rest is history. so you see the intraday chart there. 95, 94 now 94 basis points. it's out of control. look at a long-term chart going back to july 2012 that was the first of the two double bonds in the mid 130s wasnonce we went through thoughi know i was on the air many times trying to warn people how significant that was look at the 20 year chart just to see how we fall off the ski slope. tens minus twos. yes, thflatten the curve. with rates going down, that's not as interesting for banks and finally, nobody's mentioned the dollar index i hope the administration isn't dancing over the fact of how weak it is and the eight sessions since it made its high going back the may of 2017 just eight sessions ago, it has

gone from basically a whisker under 100 to now briefly today below 97 so if you're a middle class guy looking to buy anything made outside the country, which in certain sectors like electronics, there's a lot of things you're going b to be paying for not less tyler. >> rick, let me just quickly ask you to clarify you said the two year yield has dropped basically a full quarter point just today when is the last time we saw that >> it settled at 90 basis points >> wow >> 90 basis pointed. here we are in 63. so it makes sense. you know the fed wanted to ease. i get it but the point of the matter is the market was doing the heavy lifting. now you throw another reason, the rest of the curve has to readjust and it's readjusting in the middle of the whole globe being so -- their emergency cut, let's see if we can do a tight back like they did with the

bailouts in the last crisis. >> rick santelli, thank you rch. appreciate it. let's move along to ask the question, did the fed do the right thing and is it enough to keep the economy afloat? with us now is michael, jpmorgan, the chief u.s. economist at oxford economics. welcome to both. let me ask you, what does a fed rate cut do right now and how does it help what's the transmission mechanism? >> well, the hope was that this would ease financial conditions. the result today suggested that perhaps the market was looking for more than it got at least this is a god first step i think if the fed had done nothing between now and the march meeting, i think the action in stocks could be worse than what you're seeing today. so we think easier policy is warranted. certain ly the market isn't telling us inflation is a risk so there's no real issue holding the fed back from divides easier policy and we suspect that this

may be only the first of more ease at least once more perhaps even more than that given the situation developing in the economy. >> gregory, as we go down 900 points just a few u moments ago, i'd like to get you to react to what michael just said is the stock market's reaction a function of the fact that they expect more and are disappointed that they think the situation is going to get worse and that this isn't going to help >> i think it's possibly a combination of both. we have the fed reacting to what is an environment of rapidly tightening financial conditions. and not doing anything is is actually worse than providing easing so this view that the fed won't resolve the supply chain disruption and won't be able to stop while it is correct, missed completely that by not loosening monetary policy, the fed would actually lead to a further tight ping of financial conditions

which would have adverse effects. so if we lock at the broader pick chu, we have to remember this virus has yet to have significant economic damage. we have a fear shock, but yet to see much of the economic damage and the fed easing now is the right approach into providing further easing or preventing at least a tightening in financial conditions ahead of what could be a serious outbreak. >> let me bring steve liesman back in. steve, they've just tightened financial conditions considerably more in the wake f f this than they were this morning. if you lock at the drop, stock market's down almost 1,000 points now the bond yield, i mean i don't think this is the reaction that they wanted. right? wouldn't they want a reaction that said -- >> that's right, but i see the premise of your question that they tightened financial conditions >> the one thing that happened today was the emergency rate cut. this is the market's response to that >> it could well be what mike said right off the top, which is that the market wants more of

this that the fed -- let me finish my answer that the fed has not done enough here and may indeed need to do more here. the idea that fed cuts rates tightens financial conditions is hard to stomach. you have u the decline in the market, but as gregory said, hard to imagine where we would have been, remember, at 7:30 this mortgag morning, the headline on b cnbc.com was the g7 viding no pd the market was starting to trend downward because of there was no action out of the g7 10:00, the biggest central bank in the g7 comes along and provides policy action of course you had initial bump right there. so you can imagine what might have happened had we gone on the rest of the day with no policy action at all. >> mike, i don't know that it matters one way or another, but the president has been calling for lower interest rates for a

long time. and today, he has called for even more cuts does the fed listen to the president? >> i don't think so. no, i think all that it is worth, the fed is operating politically independent here for the best of the economy and one thing i would kind of reiterate in different way what i said earlier, if one thought that the fed was undually providing overly easy monetary policy right now, i think the market would be responding by expecting higher inflation or inflation that is inconsistent with our 2% target if anything, the market is still expecting inflation to come in below that target. so i don't think what the market is saying that the fed is act ing in way that is being strong armed by the president in any manner so i think what they're doing is appropriate for the economy. i just think perhaps they need more if anything >> it seems to me we're in a period where we're anticipating what is to come. we are concerned about the spread of this virus

getting into the earnings warnings season and then a couple of weeks after that into the first quarter earnings season ultimately, corporate profits drive stock prices what do you expect when we get to that point? >> when we get this data, we'll probably be disappointed in terms of what's happening on the economic front i think there's been a front run of financial condition tightening ahead of the real economic impact. to steve's point, he's correct that the g7 joint statement was understo under wheming. so far, we've only seen the fed cutting rates, but there are questions about fiscal policy to try to alleviate some of the head wind caused by this virus and when we look at the economic damage more is yet to come. the real risk is not contagion it's the fact that local and national authorities are using lockdown mechanisms to try to prevent the spread and that

lockdown leads to a severe cutback in action. >> i just want to follow up, which is yesterday, eamon javers our colleague in washington says -- it wasn't needed because it was so strong congress is talking about an 8 billion prak, a tenth or less response to katrina. meanwhi meanwhile, there are more to come from other central banks. i believe the bank of canada meets tomorrow i believe expectations are that you'll get a rate cut out of them ecb would be a week from thursday i don't know they'll wait until then, but they may provide another rate cut then in addition to other measures so i don't think the last shoe has dropped in the policy response from the g7 nations >> thank you very much mike, gregory and steve liesman. appreciate it. >> with stocks near the lows of the session, we've seen some extreme moves in ten year yields as well. moments ago, it was 0.9% flat.

the dow has eraseded much of yesterday's snap back. let's bring in david and mychal bell a with cue investors. david, what is your reaction what do you think it's telling us >> hi, kelly look i think the fed was right to take the action given the uncertainty. the market selling off is a reflection that between 2950 and 3,000 on the s&p, it's fair value m the correction is just fine the earnings outlook has been impacted by the situation in asia and now the european tourism industry is basically getting shut down for the spring so the market selling off but not because of what the fed did. it's selling off because of a lot of investors knew they needed to derisk and they were looking for a better opportunity to do so and figured that opportunity would come when policymakers took action that came.

neither derisking. my advice would be don't panic there will be more volatility in markets for the remaining weeks and possibility months i would invest that investors buy the stocks they wanted to buy or should have bought a few years ago but don't by the things they should have bought energy, industrials, still a lot of concerns. tech, health care, that's my preference i would only point out that focussing on financial, look at interest rates these are good for consumers and households and maybe real estate virtualues, but a challenge for banks. >> michael, what would you add to that? we live in a world where we auch price stocks off the level of interest rates so today, stocks are selling off, rates are moving lower, but tomorrow do we shake thing off and have a different view of the world? >> if you're a long-term investor, you should be viewing this as an opportunity to buy in this is one of many reasons on why potential panic is going to look back five years from now as an opportunity, but be no qualms

about it, there's going to be significant volatility in the short the median term because this is unlike a financial crisis where fed action or policy action can fix this coronavirus is going to be waiting for a vaccine. about rates of contagion having to slow and there's too weak incubation period. this is not a made prt 24 hour news cycle process the market is going to have to digest that information. that's going to bring a lot of ups and downs to the market for the remains months, not weeks. >> talk to me b about the earnings i just mentioned with our prior guest as we get into the warning season then into the earning season in early prescriptiapril. it's company specific. airlines are clearly on the front line of this what kind of haircut do you expect >> most industrial companies are

on the front lines of this and yes, you're right. travel certainly earnings growth, 5%, which we consider healthy and normal, but we continue to point to the risks out there. at this stage, we cut our earnings estimate. only expecting 2% growth now $168 out of s&p in 2020. and we made cuts to our first and second quarter earnings estimates leave iing the back h of the year in tact. we'll see if we can recover but recooping earnings that are lost in the first half, that's unlikely recovery we're watch we're watching the data. at this stage, it's best to think of 2020 of being another year of flattish earnings. >> how earnings will be affected until we know how america has to address the issue here if you imagine a kind of china type response where they are cities that are quarantined,

travel shut down, that is one impact if for example, and i'm speaking a little bit about a school, but only because you have to think about it for the economy if for example we find out that the infection rate is lower or death rate is lower, we may go about our business in ways we haven't thought about and live with this thing and find ways to limit the effects of it. and the economic effects would be another the issue now is that there is very little visiblility past the next cowell of quarters tapd market will fibd its leg i imagine. >> in terms of the national response, there's little vizab e visibility beyond the next couple of days,really. in terms of what consumers are going to do. >> or what government is going to do. >> we're already hear iing abou flights that are going to the west coast and reduced numbers of people going out to ball games. presumably a reduced number of people are going to restaurants.

maybe people are going issue mass transit >> having a conversation with the organizers of a conference speaking out on monday in orlando. yeah, i don't know if i'm going. right now, but i intend to go, guys, but there's some issue as to whether we should >> but people will come out to see your band play >> march 24th. capital theatre. >> i am up in world bank doing virtual format for their 2020 spring meetings. >> if you think about how that ripples through and he can talk about this better than i can the earnings of marriott, all of these hotels and airlines. if you know the answer to that, whether or not that travel is going to happen, you can know the answer to the earnings >> we're about to fall 11,000 points here. 996. michael, i just wanted to ask you and this is what i thought was an interesting question earlier. if coronavirus spread and the e

reaction isn't as bad, would you raise rates again. has the market with this one-time repricing priced in that scenario he's describing with marriott and with travel being shut down or do we need to continue to price it in with each passing week? >> we need to continue to price it because that message is not going to become clear. we have to use this as an opportunity to rebalance something worked haas week that hasn't in a while. diversification. bonds are up 2%. international stocks outperformeded take advantage of the rebalance right now. what worked over the last ten years was large cap u.s. growth. what we saw last week was other things worked. so like moving -- it's going to be important area as well. >> david, go ahead >> look, i think you should stick with what's been working for the past ten years we're nowhere near value stocks. the thing that will recover strongly are travelstocks, communication is to bes, virtual

economy stocks we're looking at lasting damage to demand for commodities and excess supply for commodities. this is true for industrials now the other big part of the value universe, whether it's u.s. or around the world, banks being damaged by low interest rates now even the united states by stocks you wish you u bought three years ago. do not buy the stocks you should not have bought three years ago. >> i want to bring up a concept i learned i guess back in '08, '09 from joe kernen. at a time like this, stocks pass through from weak hand and don't stop falling until they settle into strong hands. i don't know how that helps you and the reason i thought of that is i was thinking about why you have this downturn after this fed cuts rates it might have been that this was used as an excuse by people. this lets me get out of a position i wanted to be out of this in this environment and so

they used this opportunity to sell so what you have now is another piece of this process of going from weak hands to eventually hopefully finding strong hands that gives you a bottom to the market >> all right >> thank you, guys steve, we appreciate it. mike, david, thank you all >> well the coronavirus is the trigger of course for all the recent market mayhem let's go to meg for the latest developments on the virus and its spread meg. >> hi, tyler the numbers are continuing to rise around the world now topping 92,000 with more than 3100 deaths. in seattle, a seventh death confirmed today as u.s. case counts top 100 the biggest outbreaks worldwide outside of china are in south korea, italy and iran. with a report this afternoon that iran is temporarily freed 54,000 inmates to avoid spread in prisons here in the u.s., new measures are being taken in seattle and king county, purchasing a hotel to use as an isolation center and here in new york, new

cleaning protocols for schools an public transmission meanwhile, the work on vaccines and drugs for the coronavirus forges ahead at record speed we spoke with regeneron's ceo. >> we have tunes with lots of antibodies in them we're gipg to screen them for the best couple that we think could block this virus and use our tricks to immediately get it into scale and be making 200,000 doses by august. >> so by the end of the summer, they could be in human trials. >> we're haeing a lot about the scarcity of testing kits and a response what can you tell us about how quickly the u.s. can ramp up this is something scott has been talk iing about for a long, long time that we're behind the curve on this. >> the u.s. testing capacity is is much lower than we're hearing about in other countries in south korea, testing thousands of people a day.

they've got drive through capability there the commissioner saying today they expect to have the capacity of a million test kits or at least a million tests in the united states by the end of this week or next week, but that depends on commercial testing companies getting up and running. we are hear iing reports that local health department, hospitals, they don't all have the tests they need or want so still lacking in that department >> great reporting thank you very much. meantime, we have breaking news as we are getting comment frs president trump on both the coronavirus and the fed. let's go to eamon javers in d.c. for those headlines. >> that's correct. the president just stopping to talk to reporters for a couple of minutes he was asked if at this point, the spread of the coronavirus across the country is inevitable, he said anything can happen, but i wouldn't use the word inevitable. he also said the administration is is looking for ways to deal with people who have the coronavirus but don't have health care. he said they're looking for solutions there, possibly paying

hospitals to take coronavirus patients so that's one item the president also talked about the federal reserve. he said the fed rate is still too high he said e it should be eased down he said he's concerned about where the dollar is right now. i watched him if he watched the fed press conference and what he thought f it, but he said no, the fed is following and not leading. he wants the fed to lead here and on the virus, guys, the president was asked about domestic travel, any restrictions he suggested no, he doesn't see a need for domestic travel restrictions because there's only one hot spot here in the united states as of right now. that's the current thinking from the president. >> since we have you and you're at the white house, just got to ask you sort of the topic of, should there have been a huge fiscal stimulus package. the president is is out there pointing the finger at the fed why not have the president say listen, i'm going to go the hong

kong thing we're going to come out with consumer relief and tax relief and business relief. is there any mumbling that something like that have been coming >> there have been rumors swirling for days that something might be under consideration to that effect, but what the president has said so far publicly is a, i want the fed to cut rates, but be brk, i want democrats on capitol hill to move forward with a payroll tax cut. those are things the white house doesn't have to take the lead on and you can point to other people in terms of what the white house is poernlly considering, i'm told there's this national economic counsel meeting this afternoon at which they are monitoring the economic impact of the coronavirus, but senior administration official tell me there's no effort there as of right now, to move forward in terms of any kind of fiscal stimulus from the white house directly no policy options being considered they're just trying to gather data on how this could impact the economy and states around the country, but we did just hear the president talk about this idea of uninsured people who have the coronavirus and

what to do to make sure they get to hospitals that may be the president signalling that's one policy option in place here guys. >> eamon, thank you. at the white house near lows of the session ten year yield keeps hitting new record lows today. this after the fed launched an emergency rate cut today because of the growing risk from the coronavirus. financials, energy, the tech sector, all getting hit hard we'll take a quick break we'll have much, much more on this major sell off right after this stay with us when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo.

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with the right financial advice, life can be brilliant. ameriprise financial. welcome back to "power lunch" on h this wild day for stogs. we almost fell 1,000 points. down 814 all eyes are on the ten year yield. it's hit record low after record low today. 0.9% nasdaq down 3% all the major indices down that much tech and financial rs the two weakest sec tos. let's get to diana oleic here on one positive thing the housing stocks >> several builder stocks still

in green after the rate cut u. the home building etf is off the session high it was up almost 3%. out of correction territory. it was being led by len, nar mortgage rates loosely follow the yield on the ten year treasury the average rate hit 3.13% yesterday. a record low according to mortgage news daily. s&p real estate sector was up most of the day. the it's made up of commercial reets. they're a low yield play and commercial real estate will benefit from the fed's rate cut. >> thank you over to seema. it's time for trading nation >> let's continue this discussion around defensive plays. home construction etf higher on the rate cut as diana was pointing out, but more than four fifths of the homebuilder stocks are still trading 10% below the

highs or more so can you trust the move we're seeing today? investors want the find places to hide right now. should it be in the home builders >> yeah, as rate come down, mortgage rates are going to fol who suit it's going to cause quite a few of those would be home buyers to finally pull the trigger and buy a home so the issue is where when it comes to affordable housing, there's not a will tlot of invey that's why i like dr horton. move up markets, they've got pricing power because supply is limited. but actually my favorite way to put housing is through sherwin williams consumers are becoming more and more price conscious and the least expensive way to give your home a makeover is through paint. >> matt, you've been looking at dr horton and home depot they've had a strong way although now they're testing their 200 day moving average >> they're acting -- sold off

last week in a shortstop fashion. bounced off their 200 day moou moving averages after they became very, very yoef sold. these are the kinds o napes you like to see get washed out that usually means their bounce can last longer e. as mark said about sherwin williams, goes for home depot as well people are more willing to do home improvement >> we'll see if that lasts matt and mark, thank you for joining me and for more, head to our website. >> the oil dropping -- commodity tests where the trend has been down >> hey, there. oil prices falling below session high after a surge following the fed announcing it will reduce interest rates by a half a percentage point on fears it's a signal that coronavirus is worse than thought.

wti settling up, .8% higher. brent crude, it was flat, but now it's just moved lower. now in focus, the opec meeting, that begins tomorrow production cuts of a million barrels a day expected as oil prices have fallen about 20% since the start of the year. back to you. >> thank you frank hol hand watching crude for us the fed's half point cut not the only market moving event today it's also super tuesday. 14 states are voting and markets are watching this closely. whether it will be bernie or biden. kayla? >> and more than a third of delegates up for grabs and whether it's bernie, biden or bloomberg who's making his first ballot appearance today really depends on where you go. the more liberal states like california where we are now u have given sanders a commanding lead about a 12-point advantage over biden, but that's been narrowing. biden seeing a reversal after fortunes in the last 72 hours after the establishment rallied

around him and some centrists here athey'say they're sold >> i voted for biden because he seems like he's surging in polls. bernie sanders scares me he's a little bit too radical. i'm a moderate when it comes to things take the build path. >> now after that palmetto state landslide, biden has something of a fire wall in the south. sanders stronghold is new england and out west bloomberg has focused on securing the 70 or so delegates in arkansas and oklahoma, but u in recent polling, he hasn't broken above third place and bloomberg is in florida today which doesn't cast its votes for a few more weeks an today will determine whether he even has a path to get there. >> thank you very much the coronavirus suddenly shoving the economy to the forefront of the lech after the federal reserve warns the virus is an

evolving risk and that sparked today's rate cut president trump tweeting the democrats in the house should propose a payroll tax cut. great for the middle class and usa. are we in for more stimulus or is that what the doctor ordered? michael, let me begin with you do you think the idea of a payroll tax cut is the kind of tonic the economy needs and what are the odds of it happening in an election year where i think the democrats would be low to hand the president anything he could claim credit for >> i think your second point is the more important one which is i wouldn't place high odds on this happening at all. the prior here is that the u.s. government generally speaking doesn't have the track record of doing proactive fiscal stimulus. just doesn't sort of try and

anticipate economic drawdowns and do fiscal expansion anticipation on them after there's real economic damage, it has a much better track record congress four of the last seven recessions you did get a fiscal response but the difference is you have to have that real economic impact first members of congress have to be hear iing from their constituen. >> michael, just jump in here. all recessions are different what we're talk iing about now s is not necessarily a business cycle problem. it's literally coronavirus you can bet every congressman is saying what do i do to stay safe my supermarket shelves are etchty i can't get baby wipes don't you think this would be right place to do not some bland fiscal stimulus package, but maybe something that could support business, rent relief, loan relief. wasn't this be a time to try that instead of monetary policy

>> yeah, well i think there's a difference between a sort of tax cut specific stimulus versus a variety of other things that might be more on brand for the democrats to sign on to, right so upping the budget for the cdc for example. those types of reresponses, whi don't necessarily have to trip into the politics of doing a fiscal expansion, but if you're just talking about something that investors will get excited about, a relatively large deficit finance tax cut is off the table until things get worse. >> what if you had something more targeted? for example, there may with lot of parents who are going to have f to stay home because school is shut so you give them sick pay from the federal government or require businesses to pay them sick pay >> and both jim cramer hinted at it and steve liesman explicitly talk ed about using a fee ma lie vehicle to bring help to those who need it most whether it's restaurants that

closed down for lack of traffic or companies that see a shortfall in revenue or small businesses can't have their employees come in. after the -- my family lived there at the time. my sister got a check after her apartment complex was condemned, within two tas for $5,000. f fema fishes were out in field. we have the capacity to bring relief for an emergency. this is more like a natural z disaster in which it's no way parallel the fed i think did the right thing and i said to you a week ago this was going to be a titanic struggle between the pace of news we get on virus >> just as you were saying this and talking about fema or hurricane sandy, michael, ron, both of you jump in here, and a massive stimulus package for the economy, i have no idea whether all that is needed, but i was going yeah, but there's still only 100 identified cases in the

united states. it may blossom big over the next tep days, we don't know and some think it will. so are we being prudent in talking about these kinds of responses early before it gets bigger or being a little ala alarmist >> i don't think we're being alarmisten the disruption you u saw in china maybe 80,000 cases in china. 2,000 deaths and a halt in disruption in the smi chain. where you can be preemptive is wanting to establish a call by which you could deliver aid and two, reinstate the pandemic response team that the president fired two years ago. we don't even have that in place should it spread farther than anticipated. >> same thing to you, michael. what are some measures that could keep people from overreacting, worsening the economy and do you think the fed did the right thing today and if ta did, then why the market reaction >> well, i think that the

response you're getting is the only response that's kind of possible given the set of constraints inside of the government right now which is i do think the administration's probably highly incentivized to help out the economy proactively here just has limited b abability to so a tax cut requires cooperation from democrats i don't think that's b possible until things get worse then it would probably have to be paired other things democrats would ling what are the things the administration could do proactively, there's limited ese of things within the branch's purview. obviously trying to publicly persuade the fed to act was u what the president was up to this weekend and that's what you got so i think from a market's perspective, we are supposed to be thinking about if and when there will be a fiscal response but what you got so far is really what was b possible and that's the way to think about this going forward >> we need to wrap up here

ron, you were shaking your head in disagreement there. >> it's not a question of going before congress and trying to ram this through a legislative process where in this vir environment, give and take doesn't happen so ewing the federal government's mechanisms like fema and other disaster relief types of departments, you can set up for the potential this gets worse it doesn't have to go through congress again, the administration keeps pointing the finger at the fed keeps pointing the finger at congress we have mechanisms in place to deal with things like this >> let me conclude by asking both of you the following question michael, you go first. has your employer put in place any travel restrictions for your teams of either internationally or nationally? >> yeah, i mean i don't think we're doing anything that different than anyone else just sort of being watchful to travel that's essential.

it's always b possible that could change but for the moment, it's just being cautious >> kind of 50/50 in my case. there's some international travel they're looking at asia skans, but i'm going to l.a. tomorrow on a plane to do some speaking for them and nothing's been canceled and i'm not getting any indication there's any travel restrictions >> thank you ron, stick around. zblnc up next, an emergency rate cut from the fed designed to boost the economy. will it help the consumer? retailers are getting hit pretty hard today target down, wall mrt down 2.5 we'll have r more on that when "power lunch" returns. stay with us woman: my reputation was trashed online.

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let's show you a photograph. are we going to it now fine we got a news alert on ford an the coronavirus. phil lebeau is in chicago with those details. >> i'm not the photograph you're looking for, but we have important news from ford two pieces of information here first of all, the company is now restricting all business travel through march 27th this means they will have to have senior management approval in order to travel this comes as the company also confirms that two of its employees in china did contract the coronavirus. they were quarantined. they are doing better, but this is a company that like so many others has made the decision because nobody's quite sure, it is going to restrict executive travel through march 27th. this is not the first company and i'm sure it's not going to be the last.

back to you. >> thank you very much >> and there's a look at shares of ford down 3.5%. here's a look at the photo a fe toe of a very empty costco. this just came in from dom there is not much of it. those familiar are shopping at costco know what section it's in the back where you have the toilet paper, paper towels they said they laid down a palette of this stuff over the weekend, some of those shortages do persist today >> all right well, there you go that is empty. not sure why looks like russia -- >> not sure why. but -- >> yeah, there's a sense of people needing to say, it's both if you, your household is quarantined for two weeks, you can't go anywhere, you want to have the stuff you need and if supermarkets can't get employees, it's not a reliable supply there's been no example of that.

dealing with natural zasers and different things on a wide scale, in that case, costco was having a great day yesterday it's dropping and so are the rest of the retail names down about 2% as fears of the coronavirus spreading in the u.s. consumer. the group is down about 15% from its recent highs oliver chen is managing director at cowen, what would you say about the shortages and throngs of people at places like costco. what impact will that have >> we're looking at one to two points of traffic, as we think about the situation, stocks that we like for the long term include walmart, including kostka, and planet fitness on the pull back. so there's great franchises. as customers prepared and then with this -- people are stocking up on essentials, food, health care items

>> just yesterday my neighbors went to the mall just to go to bath & body works. anecdotally you can't get baby wipes anywhere, planet fitness you think would benefit? wouldn't people stay away from a gym? >> it's pulled back over 20% that is being said, this is an evolving situation that will not necessarily persist for a long time planet fitness has a long global growth opportunity, high-value proposition being a gym membership around $10. we like the business model as it is it's a different idea, but we're trying to give investors advice and great franchises that are less expensive but another franchise we like is lvmh >> well, let me take them one at a time there

on planet fitness, i would think one might be concerned that people wouldn't want to go into a public space to work out, which may favor nautilus or peloton, one of those. >> we're also recommending peloton. i agree. a lot of the online, targets and drive-up, the next-day delivery, that kind of functionality will continue to be extremely important and customers get pour and more engaged. >> truth is planet fitness, a lot of members don't visit that gym very often, so it's a very good business model at large it's a business model that created this low-value opportunity. so it's something to watch as this evolves we're afraid of the mall the mall is having a tough time even before the situation. so the winners will likely continue to be winners. >> a lot of people don't visit

their peloton all that often, he said tellingly >> clothes hanger. >> yes let's move to lvmh my guess is that all luxury retailers depended so -- in market customers and chinese expats out traveling around the world, that would be one that would be hurt badly. >> tyler, you're right about 30% of the revenue, even more profitability is related to china. lvmh is number one there's a portfolio of other brands called dior we actually cut our numbers, but it's a good time to think about quality franchises in time of change if you get it as a less expensive price, we love it for

the long term. we see a certain bifurcation, the bigger are getting bigger. they will be here for hundreds of years as i think about making recommendations, i'm also asking clients to think about high barriers to entry and what are great businesses as we step back from the situation as well. >> oliver, as always, great to see you. >> good to see you, too. some sane advice during they some sane advice during they trying times, coming up xtne o you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean.

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1,000-point dow moves have been a nearly daily occurrence the past weeks the dow down 12% from report highs. tim maher of bucking hamm joins us with a little voice in case you're knock knock knocking on retirement's door. good to have you with us. >> thank you. let's say you're in your 70s, and two things are happening. number one, you're drawing down your savings and retirement accounts to pay to living

expenses number two, your port follow is losing money by the minute it's the opposite of the miracle of compounding what do you do >> the first thing is you acknowledge the emotion. it makes sense for somebody, especially early in retirement of the disempowering notion of not having the ability to control your income, and the fear of seeing the only thing go down can be very, very disheartening, and rightly so. the first thing we need to do is acknowledge that emotion normally if something says, hey, i'm scared, the first response is don't be scared, i'm not scared, here's why and show them the bunch of numbers, but first we need to address that very real emotion and the very real reality behind it there is a

case to be made under these circumstances? most people say no, no, no, don't sell, this isn't the time to do it is there a time when that does in fact make sense >> well, it can. if you're most people, i'm afraid most people have more of a collection of securities than a thoughtful, well designed and belt port follow ko i don't that they understand, and how it's supposed to work if this is the catalyst to take a new look at your portfolio and consider is this the strategy i want then you may determine it does make sense to draw down that equity or stock portion, because that indeed will be what generates the scaryness in times like this. but remember this -- your time horizon as a retiree is not zero you can't still live 20 or 30 year, so consider the

fixed-income portion to be the stabilizing force. consider the stock or equity portion of the portfolio to be the driving of your income in the future. we have to leave it there. tim, thank you for your insights we appreciate it. thanks for watching "power lunch", everybody. "closing bell" starts right now. don't forget, this time yesterday, the dow rallied 700 points in the final hour of trade. we have about 59 minutes to go we'll see which direction we end up in. >> i'm wilfred frost, and we'll have a look at what's driving the action the fed announcing a 50-basis cut. that sent stocks