i know you hold my feet to the fire we'll talk more. >> okay. >> yeah, we say elevated measures of cash we can't rule it out >> abd, air products >> thanks. >> i'm short to semi smh, i hope i lose money on it >> stocks are down 950 "the exchange" starts now. thank you, scott welcome to "the exchange," everybody, i'm kelly evans and we have major wall street as coronavirus spreads. the dow is down 952 points that's a 3.5% drop the downturn, of course, follows a massive rally yesterday that saw the dow post its second biggest point gain ever. but now we're back in correction from the major averages meaning that's a drop of 10% from recent highs. and this selloff has every sector and every dow stock lower. we'll have more on both sectors in just a bit. the financials and energy down

5% there industrials, consumer discretionary deep in the red as well and major moves in the bond market as well today the ten-year yield, just in the past hour went below 0.9% for the first time ever. that may be why stocks have taken a leg here let's get to bob dasani. >> kelly, the debate is whether the coronavirus is a one quarter or multiquarter phenomenon that could have more profound effects. you can see from the action today, today, multiquarter is winning. dow, essentially at the lows of the day, 20 or 30 points off of that i just want to show you the travel sector. we're at 52-week lows. in the case of royal caribbean, multiyear lows southwest air, livenation, msg, the concern about cancellation, sporting events, concerts.

things like. new lows on yields, the major bank stocks, particularly the superregional, u.s. bancorp, zions, comerica. and wells fargo. the optimists have been pointing out that the china stocks bottomed and now we're rising in the last few weeks from that. we're off of the lows. they say there's evidence china's going back to work this is the one quarter group. maybe. maybe they are right let's hope they are right. and today, certainly a lot of doubt about whether that's actually going to happen kelly, back to you >> good info, bob. bob pisani the yield, the benchmark sets rates across the country and it went to a fresh low of 0089% today. rick santelli joining us now rick, do we know what the catalyst is? >> the catalyst?

just watch your local news there's your catalyst, of course people are getting nervous listen, i'm not a doctor, i'm not a doctor all i know, think about how the world would be if you tried to quarantine everybody because of generic-type flu i'm not saying this is the generic-type flu maybe we'd be better off, we gave it to everybody, and in a month it would be over because the mortality is going to be any different than the long-term picture but the difference is we're wreaking havoc on global economies. kelly nailed on it, we traded under 90 very briefly. but is there a catalyst to this? yes, the catalyst is the ongoing increase of a agina once you traded on that chart, 12 and 16, the rest is technical history. we just had jeff gundlach on

nobody understands, other than bill gross in my opinion, ohio this big toy works the problem is, the toy he understands perfectly is grown central bank pushed everybody into risk. of course, corporates became the cannoli of the investment class. the sweet roll of the investment class. they loved it. then when rates go down in treasure rids, if corporates didn't move, when rates go down, the spread rises think about it,corporate, you want to issue them, you get out of them that exaggerated the widening of the spread the cycle is the fed they created the appetite for this and when it goes sour, they keep giving them the same drug and they just don't lose the risk they just become more comfortable and do it all over again. jeff understands that, so he said the fed's doing the right thing? are they all they're doing is keeping the toy operating that doesn't do

what it was designed to do in the beginning. kelly, back to you >> your cannoli analogy to corporates reminds me, i do have a follow-up question for you, what are we seeing in spreads? there's different kinds of things that can happen when yields drop. in this case, it sounds like yields are dropping for the bad kind of reasons, weare we seein spreads widen here today >> yeah, it's relative if corporate debt do do anything, if everybody kept their pricing structure the same and treasury yields go down, the spreads widen. and corporates started to sell off. course they did. if you owned corporates and the spread widens even just for treasury-dropping reasons it's sending the message. jeff said it's fixing it i think it makes the game go, the music keeps playing and we all keep dancing >> rick santelli in chicago on another historic day let's talk about the markets,

marian montain, ross gerber, of gerb gerb gerber kawasaki. >> marian, i'll start with you, do you think the selloffs or the coronavirus is justified >> well, i think there is a lot of fear in there, as he was just saying if we could all get infected and get through the coronavirus, you know, and move on, that would be great. but there's a lot of people who are vulnerable so, we don't wish that on all of them so, we do try to take a longer term view. and where we're seeing opportunities is really in the health care side of things and part of it is because of the coronavirus. televac has been the way to

provide the health care provider a fast growing company before the coronavirus, beat on the last quarter, then we go into a regular flu season and now coronavirus. it's a great long-term story >> okay. >> but then we also have to look at some companies that have applications in the health care area that are not going to be shaken off by the virus and that is if you need heart care devices, abbott labs will still sell those and keytruda for cancer, you're going to continue to take those treatments so that's where we see that the earnings estimates are probably impact for the full year and that's subject to lowering as many companies are >> ross, i'll bring you in as well, looking more at the tech side of things but even opportunities there in some of the video game names, for example. >> oh, yeah, i mean, look, this is a real issue, we're going to see the amount of, you know,

cases soar, as we actually have tests kits the reality is it's really just a flu. and there's a lot of panic around and changing consumer behavior in the next six months it will work itself out, it's a great opportunity for long-term investors especially in areas like casinos, disney is down hard mgm down hard. in the end, people are going to go to disneyland and they're going to casinos in a year we were looking back at this and saying, wow, what a great opportunity. >> mike, let me bring you in on this to first of all talk about the mechanics of the market. there are a lot of people saying this shall pass in six months. this shall pass in a year. how much of this is coronavirus and rates. to disentangle that for us quite frankly, to somebody who has watched this as many years as we have, how extraordinary is

what we're seeing today? >> it's extraordinary day to day, kelly i will say, it's mostly just chopping around in the very wide range that we just got thrown into we're still right now on the s&p 500 more than 5% below the lows on friday we're kind of giving back and taking the same territory. it's very similar to other episodes not in terms of the actual news drivers but in terms of the shock value of the initial catalyst and the way the market tries to capitalize on it and if i'm on a business, trying to say that's a gift but shorter term, the trader could c essentially throw out the game flan i think we're in a similar way, late 2011, we had the possibility of u.s. debt from the sovereign debt crisis. or after 9/11, 2001, where you

do have a great shock that creates outcomesand the market just simply grab hold of any one of them for very long and have high conviction. right now, we're chopping at a range what's going on in the market is truly extraordinary become the fact that had hasn't followed the bond market to new lows i don't know if that's meaningful >> marianne, how do you make sense of that, does it make stocks more attractive on the kind of methodology or does it make you feel bad about something? >> no, i think it's fed kind of scared people when they lowered rates by 50 basis points and they'll scare the markets if they do it again it's converse to everything we've learned about lower interest and higher valuations on stocks. what i think is important when you get relief efforts like out of the imf, $50 billion and congress talked about $8 billion, that's probably going

to rise and give some relief we need more fiscal policy we need people to actually legislate positive things that can support the economy. and drive the economy higher and the fed rate cuts are not going to do that in my opinion >> ross, people are focused on the airlines you mentioned the casinos. there are names here where, you know, we have to look closely at the balance sheets to make sure as this persists and people stay home that they can really weather this you have looked at these companies to figure out, blaloo who has the cash to get through this >> we don't honor airlines anyways, i don't like the business and boy is a reason to really not like the business disney, for example, they're such solid companies, one reason, we're playing in a stock called mgp which is the real estate understand mgm hotels and they just got paid rent and this stock got sold down and you can get 6.5% yield on it

but we see vegas as a huge opportunity. but i just have to stress, the next six months are going to be hard in the market it's going to be volatile. and investors should be conservative and they're piling into bonds for good reason. when we look out from a year from now, boy, we'll be looking back to say, did we get some discount >> it's a great time to book a vacation, by the way it's fine, it's so overblown it's flu the flu is horrible this year, if you wash your hands and you use basic hygiene, you have no more risk of getting this or ebola or anything else please, i have small children at home i'm constantly plied with germs. just use good hygiene and go on vacation >> that's a perfect point to bring in meg tirrell, with the dow down about 1,000 points this afternoon. the ten-year yield, below 10%.

let's get to the very latest in the coronavirus outbreak. the case number in the u.s. are continuing to grow that might be one other catalyst for the market meg, why don't we start here meg tirrell here with the latest >> in new york, the total cases doubled overnight to 22. eight new case tied to the attorney in westchester county two new cases in new york city and one in long island cuomo saying the number will go up because we're continuing to test more and more and testing capacity is beginning to expand across the country after an initial slow start. the cdc is shipping more test s academic labs are bringing their own tests on online. the world health organization is saying it's advocating aggressive preparenesses to governments across the globe saying it's concerned that some haven't taken the threat seriously enough or decided the

there's nothing they could do. >> meg, let's get do it. i heard that this is no worse than the flu but there are two ways in which it's potentially worse i want you to explain it is it because it is more transmissible and slightly more fatal. what do we know? >> if you look at the fatality rate, it's much more for covid-19 than the flu. you're seeing 1.2% to 1.4% right now it's more deadly than the flu. the transmissibility number in the community is higher for covid-19 than the flu. >> how much higher >> 2.2 whereas for the flu, it's 1 and 3. but the w.h.o. is saying that they think the flu is more contagious because it spreads and people are asymptomatic in the early part of the disease. however, i'm talking with a lot

of health experts who say covid-19 and the flu spread in extremely similar ways so they're pushing back on that on the w.h.o. there are a lot of reasons to be concerned about this in addition, just saying this is like the flu doesn't necessarily mean it's a big deal the flu is bad, if we have a double flu, that's terrible. that could tremendously overwhelm the united states and around the world >> great point, happening at exactly the same sometime. final point goes back to everybody is focused on the mortality rate again, with the seasonal flu, there's so many people involved that the mortality rate isn't as high we're all familiar with the process. any progress with coronavirus towards making sure we know the people who have it, agency ts te aren't that bad so we can get a better sense of the true mortali mortality rate >> the ones coming outside of south korea, they're doing tremendous testing 10,000 tests a day they have a relatively low

mortality count. what i'm hearing from genealogists, that the mortality rate could creep up because people are in the middle of the course of disease right now. yes, they're picking up more mild cases but it's early days. >> what's korea's mortality rate >> 0.6%. pretty low >> meg tirrell here with the full rundown of coronavirus. now, let's turn back to the markets where financials are the worst performing sector in the s&p 500 in the selloff the sten-year yield hits new lows the longer-term picture isn't pretty either. the big bank and regional banks itf have dropped 7%. joining me now president and senior portfolio manager of anton advisers anton, good to see you you've owned banks over the years. are you extremely frustrated by this do you view it as another headwind that is going to pass

or are bankers losing their patience here? >> well, i'm a believer in a v-shamed recovery. the market is supposed to be say forward looking instrument supposed to be looking out six, eight, ten years ful you think about it, banks are going to benefit from the mortgage boom. there's no doubt about that. the consumer is going to benefit from lower mortgage costs. they're going to benefit from lower fuel costs and, you know, if you look at china, china is starting to come back so, this thing runs the course and when it's done running its course, i think that latent demand is going to pick right up and here's the other point i think is really important. >> sure. >> if you're a us manufacturer and you've got through trade wars and now you're going through this and your supply chain isn't working so well, what are you going to do i mean when you get that opportunity, you're going to bring that supply chain back

here i really think places like the midwest are going to be a major beneficiary when this dusts settles. and this dust will settle. oh by the way, we're all behaving in a way that none of us have behaved before, whether it be elbow bumping or foot tapping or watching our hands 50 times a day. there's going to be less case of flu spreading around because we're hyper sensitive in helping each other it's a tremendous change in our behavior that's going to lead to less people being out of work. it's going to lead to a change and a positive no one has talked about. >> and another positive that could come from this is baby boom because people are quarantined at home. let's leave that aside for a second going back to the bank valuations, anton, we spoke to an an lit analyst the other day talking about a 4% hit with forward earnings

what are the numbers here? that seems like ancient history. we're below 0.9% now how much the earning power going to drop because of that? >> well, i think there's multiple questions on earnings power. obviously, where do the treasuries settle. they're going to settle somewhere. if you believe in a v-shaped recovery, i do treasury rates are going to be higher i know jpmorgan is one firms that talks about treasury rates being substantially higher in the year i don't think it's going to be higher than they were in early january. if you go then on to short-term rates, the fed short-term cut is probably going to impact bank earns by 6, 7% and banks that are mortgaged heavier are going to do quite well it really does depend on the

v-shaped recovery in the back half of the year and where the rates actually end up because to take rates at a static thing and sake a .8, .9, wherever it is, you got to hold them steady. assets will price over time. i'd like to see the fed expand its balance sheet on the short end, not the long end. and i think we've seen enough cuts when people say the banks are completely out ever bullets, we're wrong. as long as the printing presses don't run out of ink, we're not out of bullets oh, by the way, the u.s. fed has never bought equities like many central banks around the world have that's certainly another massive tool that we could use >> yeah. >> as a prior guest said, it's time for our government to get to work, cross the aisle, get some stimulus that's fiscal. it's time for the germans to do the same darn thing. and i think we're going to come through this, and we're going to come through this quite

strongly >> anton, my final big picture question, i see you describing on the one hand, a positive scenario, maybe there's a help long-term, a population boom, a v-shape recovery on the other hand, we're way closer to the japan than the u.s. zombie style economy. we're staring down a future that looks uncomfortably close to what they're going through are we going to get zombified, too? i'd like to be as optimistic as you are. that's what jeff gundlach just said last hour this is financial repression all over again if that's where we're head. >> yeah, i think that's where the fed would rather expand their balance sheet than cut interest rates when i look at the growth

prospects coming into january. you look at pmi numbers yesterday and i expect a strong jobs number in the morning, but the economy wants to go. a lot of regulations have been removed. i would not put our economy in a zombified estate, maybe people are hunkering down but while they're home, they're still spending money a lot of regulation has been removed. a lot of businesses want to go, want to run. i think i said, we move a lot of manufacturing supply chains back to the united states i think that will lead to a manufacturing rebirth in this country. >> i hope so i'm going to take the glass half full i'm going with the glass half full point of view, anton, it's great to see you >> thanks for joining me let's get a check on markets now. the dow was down 1033. we are down 953. that's a 3.5%.

the worst performer. s&p down 3 but.3%. all sectors are lower, led by financials which we discussed. energy which we'll discuss next. as a mentioned it'snot jus the banks down 4%, energy is, too, this is taking a beating this after s zamell said in the morning it's not justified is he right? we'll zig into that, next. imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines.

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energy is vying with the banks for the worst sector today. get this, theson oil and gas, down 23% in the past week and a half billionaire sam zell said. >> the energy space is getting killed, i think unjustifiably, i think we've seen extraordinary pricing in the energy ia lot of money in the energy space and think that the energy space is very cheap and there's no money. despite all of this conversation about liquidity, there's no money in the energy space. >> does mr. zell have a point? and is this sector safe to buy brian sullivan is here to look at battleground names. brian. >> is it safe to buy anything,

kelly, i have no idea. i'm going to show you a couple things maybe to open your eyes who knows, the first is syop we can see the wti, the orange line you have the absolute value of the xop over here, trading below where it was when oil was $20 a barrel in 2016 oil stocks are trading worse when oil was $20 a barrel cheaper, go figure a lot more debt. that's one of the reasons. pte rate exxonmob exxonmobil, 15.5 and chevron, 16. and again, some of these numbers will change, kelly, when you

look at yahoo! finance, whatever it may be. but you can see on a five-year basis on it's pe ratio, they are, i suppose, discounted >> come on over. >> you don't know what the pe is going to be. >> i'm surprised they're not cheaper. cheap in single digits >> those numbers double. >> right >> there are 13 companies that have a price to earnings ratio, trailing pe to 9 >> let's flip it around, we talk about sam zell's point are there companies with a better profile? effort is great that the companies are tradesing lower with etf than when oil was back to 25. >> depends on the names, oil say four-letter word spelled d-e-b-t. i was going back and forth with high interest debt payors when i

came on. the worst your credit profile is the harder you've been hit i'm not telling people to buy stocks but i will say this, if you want to find some of these names that have investment-grade ratings and there ain't that many, with exxonmobil, you've got chevron, conoco phillips, eng, which we don't take much, baker hughes those are high investment grade. everything else is either low investment grade or absolute junk >> right it's a grim environment for energy investors the biggest split in the market is whether you should be buying things up after it's gotten this cheap. or take the signal from the markets saying, hey, steer clear of these sectors for as long as the eye can see. >> i call cerberus, the

three-headed dog either you believe all of these companies go out of business, as some people suggested, the hydrocarbon era is over. everybody believes that global demand for petrol chemical will rise in the next 20 to 30 years. not because he want to be driving around in cars you look at the global economies they don't have the luxury of driving an electric car, they got to heat their home you got to think globally. at some point it will end, nobody i talk to says now's the time nobody >> i guess that says it all. we'll talk more on opec hour let's get to contessa brewer for a cnbc update. >> senator elizabeth warren has

ended her presidential bid the onetime front-runner did not win a single state not even her home state of massachusetts. warren just spoke to reporters she was asked whether she's ready to endorse someone else? >> not today, not today. let me take a little time to think a little more. i've been spending a lot of time right now on the question of suspending and also making sure that this works as best we can for our staff, for our team, for our volunteers >> coronavirus cases in new york state have doubled overnight to 22 governor cuomo said the newly diagnosed cases include two patients in the hospital in new york city. and another in long island catholic purge churches in pennsylvania are taking steps to stop the coronavirus the archdiocese of philadelphia and trenton will stop offering wine

and urgings parishioners to sake communicatie ia communion in the hand. no one hitting the malls and ceos of uber an lyft say people are shooing transportation because of the coronavirus stock down speaking of transports, the dow transports down more than 20% for a 52-week high that's the bear market territory. 5% today, the down by alaska air and american airlines both giving up more than 11%. on the other side of the break, we'll speak with southwest airlines ceo gary kelly. "the exchange" is back in two. e filling out forms? maybe they like checking with their supervisor to see how much vacation time they have. or sending corporate their expense reports.

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it's smart. it grabs people's attention. it works. it's why comcast spotlight is changing its name to effectv. because being effective means getting results. welcome back the airline industry has taken a $113 billion hit from the coronavirus outbreak that number estimated, down 5% or more across the board and that includes southwest

which has a relatively lesser debt load. today, compete said the outbreak will cost the carrier $300 million in the first quarter for more, let's get to our own phil lebeau standing by live with the ceo of southwest, gary kelly. >> thank you, kelly. >> gary, we just talked about what you put out this morning, potentially a $300 billion hit because of the coronavirus paint for us what you're seeing from your customers and apprehension about traveling >> well, it's really all of a sudden, you know, i think through almost the entire month of february, our business was very solid we were on track to drive unit revenue growth within our guidance which was up 3.5% to 5.5% on unit basis, year over year end of the last week, we started seeing very sharp declines of course, you know, the stock market really reacted last week. we had cases showing up in the united states. so, not too shocking that we'd

see some impact on our bookings. but our primary concern, obviously, is on having a safe environment for our customers and our employees. and we stepped up our cleaning and disinfecting and sanitizing processes. so, we've got a safe environment. and hopefully, we'll get through this very quickly. >> how dramatic was the falloff in bookings that you started to see for last week? >> well, for the first quarter as we reported this morning in about a week's time it amounted to several hundred million, we're thinking so we're guessing, it's still early march. yeah, it was a very noticeable, precipitous decline. it's continued on a daily basis. hopefully, this won't last very long but it was definitely, definitely a concern >> those bookings that are not happening or the cancellations that came with them. are they primarily the business traveler, or leisure or mix of both >> you know, that's a wonderful

question i really don't know, what we do know there are a lot of business activities that are being cancelled. conventions being cancelled. meetings being cancelled we're seeing those reports every day. you're seeing companies issue travel bands or, you know, just only essential travel so, i definitely think it's an overreaction but nonetheless, it is happening. and something that it's hard to be totally prepared for, but a company like southwest financially, we're very prepared and we'll obviously consider taking the steps ourselves to manage through the financial aspect of this >> you've got a long track record with southwest. you've seen a lot of things. does this respect you more of sars or of 9/11, in terms of the dropoff in demand and how long it may take for that demand to come back? >> well, you know, one thing to clarify is that we're still 97%

domestic so what we're seeing is a dropoff on domestic travel not international, sars, 2003, we were all domestic at that point. i think don't really remember any significant impact on our business with sars or mers or hrn 1. we've been through several recessions in my four decades with the company so, you do see a very sharp drop with business travel in a recessionary period. so this feels somewhat like that hopefully, it will be short-lived. 9/11 went an economically driven issue for travel, it was more fear, kwiechquite frankly. and i think that's what's manifested this time there are elements of both it has a 9/11-type feel. hopefully, we'll get through this quickly >> one last question, many people are wondering if other airlines if you see it not filled to the point, you know what, we're going to start

discounting tickets dramatically do you expect to see that either from southwest or the industry overall? >> you know, i don't know it's a price issue. the economy is strong. people have money. they have the means to travel and to spend this says they don't want to fly for the obvious reason and so, no, i don't see us doing a lot of discounting i think what we have the ability to do is to go out into the future and trim some of our flights. united announced a significant cut in their flying yesterday. and that's something if this continues, i'm sure we'll consider >> you'll look at potential ly, at this point, you're not cutting capacity but you're looking at that possibility next week or two weeks? >> i think that's fair nothing to report on that front. we're watching that on a daily basis. as i said, this has materialized within the last week where we've seen a weakness in bookings. and for all we know today, it

could go back to normal in an apparently short period of time. we'll just keep a close watch and make a decision here >> no projection in terms when you expect to get back to normal >> oh, none. none at all. i think what is encouraging to see the number of new cases in klein on t china on the decline so that's over a several months' period hopefully, we won't see huge escalation in cases here in the united states. and i think that would be great evidence for travelers, to base their future travel plans on and hopefully, we'll get that behind us quickly. >> gary kelly, chairman and ceo of southwest airlines. a strange time, guys, as everybody is dealing with dramatic bookings. kelly, back to you >> we appreciate it. phil lebeau with southwest ceo gary kelly now, as we continue to seat effects of people not traveling

not going to malls or crowded places look at shares of starbucks down 25% today nearly 25% from a 52-week high the company is trying to reopen stores in china. having to put in big rules, including staying far away from consumers even getting your temperature taken at the entrance brett, welcome, starbucks actually reassured the market early on when it said it was moving to open its shanghai stores maybe giving people the sense that we're returning to normal how prolonged is the effect of a company likely to feel in china, any sign of kind of an end there? and are they feeling the impact here in the u.s. >> right now, we have a lot of news flow that's out there, as a result, it's hard to get a gauge for what is the real and what is the new normal right now, i think you're in a situation where they're there's a lot of hysteria out there, some of it much deserved but at the end of the day, the consumer still has a habitual

process. they still get their coffee. they're still eating their meals. they're still going to places, but if it's frequent or not, it's too early to say how long that's going to persist. >> are you guys able to project traffic, a sense for foot traffic down >> i don't get a sense for that now. >> i imagine because it's just beginning here, it's going to take some time to know if we're going through a v-shaped rebound or not what is your price price for starbucks? >> when i initiated coverage a number of weeks ago, you had a whole different pair dime oradit there. we had yet to see a correction in the s&p we had yet to see any adjustments on the stock-by-stock basis i have a $105 basis. based on the calendar earnings

estimate right now, i don't have a feeling for what the short-term or long-termal gore ri al gor lg to be. >> you will adjust your numbers but you have to wait until you have clarity, is that right? >> right now, we don't know if the fundamentals are going to change for companies we don't know if the market is going to change or we don't know how the market sentiment is going to change. at the end of the day, where i'm positioned i still think starbucks is a strong company that has long-term growth, it has solid economics. it has the ability to use some of their streamlined operations what they had, a channel distribution business, so people can still drink their coffee at home they have an international presence that can offset some of the domestic business if there is a prolonged hiccup in the long-term results. >> one other thing, you having

to put out a model for the delivery for which you also do cover, could that be a potential upside, people saying i better look to delivery to get my food to me, i don't want to get to a crowded restaurant do you think capitalizes on this spark of interest to delivery that they might not have thought about? >> we're not just looking at it from a delivery standpoint but the entire off-premises. you have a number of companies that are full service restaurants that are not seeing their business going out the door that's either picking food up or a delivery model you have the limited service players, many of whom do two thirds of their business through the drivethrough but they've also expanded on delivery as a potential driver what we may see, we may see some shift if this persists and people are afraid of being around people. but at the end of the day, americans will still find a way to eat they knowry stores

have seen a greater run in terms of traffic and stockpiling but at the end of the day, even if consumers are staying home. even if consumers decide not to commute, they're still going to -- >> they still eat. >> there's still either a need to go out and eat because you want to break up the hibernation or a need to bring the food in so the consumer is fed >> they'll benefit from that in the long right brett, we appreciate it. as the coronavirus continues to spread, many conferences and meetings have been cancelled a lot of employers are telling employees just work from home. given that uber and lyft rely on consumers being out. lyft ceo said yesterday the damage is up and uber saying it's not material for the company at all. let's bring in dan, it's good to

see you today. yesterday it seemed like the coast was clear, today, not so much if people aren't traveling from airports as much, undeniably that has to be a hit to that portion of the business. >> yeah, no doubt. they're really sort of poster child in terms of this broader coronavirus outbreak so it could impact travel. and with timing this is when uber brings up profiting for the cheer, with the penalty sort of box here i think they had to come out that they believed it was not going to impact them i can tell you from investor calls constant from the last 72 hours the debate is the goalpost run is their risk. i think right now, it's to early. and i do view it as a short-term shock. no doubt, this is definitely a heighten risk for those names. >> and france has now come out against the independent

contractor business model for ride share france, california, uk, all lining up and saying no, these have to be employees maybe that is the bigger problem. >> for us the darkest cloud right now is the california, the ripple effect, to new york, massachusetts, and obviously over the pond. look at what's happening in london as well that is really what's a potential gut punch. not just uber/lyft but the overall economy. the 8 to $10 overhang on uber stock. we feel it's not as draconian as fear taking that combined with nervousness on global travel that's the one/two punch that's making it seem so volatile especially after uber and dara just raised profitability targets up by a year >> that's true making that harder to achieve. let me ask you about slack

which is another company you cover a lot saying this could be part that does better. people working from home, relying on the messaging systems. do you see any evidence that this company will be helped in the long run by this trend >> yeah. obviously, slack continues to sort of be -- it's a great company in terms of whereof they play microsoft is the main competition. i think they do play into that theme. i think that's something that definitely a shift of investors want to play more names that could play into that i do think it's key over the next week with earnings, do they call it out, is there a bump right now, no doubt, sentiment has improved in slack. but i still think microsoft, comparatively, just looking at longer term, continues to be a major risk as they go into r

redmo redmond's turf >> i appreciate it dan ives talking about ride sharing customers nationwide are seeing effort shelves in place of cleaning products and nonperishable items as they stock up for the he's president and ceo of southeastern grocers the parent company of win dixie, bi-lo and harvey's great to see you, anthony, and while coronavirus isn't that bad yet in your part of the country, are people destocking your stores >> yeah, it's great to be back, thanks very much we've seen an uplift of traffic and transactions across the whole store are people are eat out less but particularly in the areas obviously of household cleaners, air freshener, personal care, toiletries, clean exsanitization if you will. >> how confident are you in

being able to keep those shelves full >> unfortunately, we live in the footprint where there's a lot of natural disasters. we've had four category 5 hurricanes on record in the last four years and there's only five on record. there's similarities between the category lifts from preparing for a hurricane as we are for this danger to public health >> how would you, it's interesting you bring up the hurricane analogy. many are drawing the connection between the natural disaster and event like this because we're seeing runs on similar products. how would you describe krohn coronavirus on a hurricane scale? >> the similarities are that you typically get a three to five-day warning if you will of any imminent weather impact and this is very serious we, sorry, this is very similar.

we have a five to seven-day lag, particularly because of 80% of the cases of coronavirus are on the west coast so we have a world class supply chain that's constantly in touch with our friends and colleagues on the west coast to see which products are moving. >> here's my question. when a natural disaster happens, the affected region is devastated what happens when the entire country is running for toilet paper and cleaning products. is there anywhere left to turn to make sure you draw those supplies when you're competing against all the other stores in the country, not just those in your area? >> again, we have a world class supply chain so we're very used to watching the movement of product and right now as we stand today, we're fully in stock. there's again similarities between the categories in terms of personal care, home care, sanitization so we're very well stocked >> and can you plain how that is, what that world class supply chain means? does that mean you rely more on

american companies are you diversified globally what does that look like >> we are predominantly american supplied companies in fact, i just came to visit with you now from an annual supply submit hemmit here in jacksonville so we have a thousand of our largest suppliers visiting here right now. so again, we're used to watching and when products are pulled at a faster rate. we can change those, we can change those fields from our computer generated ordering system to make sure we're serving our customers. >> so you think shoppers in your region will have no reason to stock up ahead of time they're going to be able to get the product they need from an hour your stores >> absolutely. they are stocking up now in some of these categoriecategories, w 200% lift. the supply chain is very robust and we're well practiced in the muscle of disaster reloof.

>> the president and ceo of southeastern grocers and stocks are selling off sharply again today. the dow is down nearly 3.5%. down 911 points. similar declines to the s&p and nasdaq the russell today. yield on a ten-year hitting a new record low breaking the .9 handle jeff gunlock says the yields could be over soon >> i think we're pretty near the low right now. maybe get to 80 basis points op the ten year i don't believe in the 25 point ten year, i think that's just extrapolating a move that's already happened i think that the short rates are going lower. there's no upward pressure on short rate, but we're starting to see steepening yield curve in a way that's noticeable. >> join iing me now from the flo of f the new york stock exchange to talk about how they're handling the volatility, matthew cheslock from chicago, jim uric and matt, i'll begin with you. what are you watching in these

markets for a sign of whether we're bottoming out here at all or not >> well, the ten-year when it h hold above nine, that's a positive sign. yesterday, broke through one later in the day and we had that added on to the rally we saw and that was kind of, you know we were optimistic it would help but that hasn't been the case. when you start to see a 10% move in the ten-year yield in a single day, that's only ten basis points this market is moving very fast and equities just can't keep up. >> do you get a sense especially being in the middle of things, is it programmatic or is it the good old fashioned battle of viewpoints in terms of the trading community and investors out there. >> i don't know if there's enough clarity for people to invest the transports for one are are almost uninvestable. energy has been suffering from that same kind of malaise. so right now, there are certain sectors that aren't see iing

anything we're seeing all the money flow into gold. seeing in terks, le health teleconferencing all the money is being moved out and into the same sectors in the same time so it's hard to fight ta take. >> jim, let me bring you in on that watching oil and gold in some sectors. what message are you getting from there as sharp as the sell off has been, talk through what each of those themselves seems to be doing. >> well, you and i talked about that this a week ago with gold and ten years, because i thought the response to this to the economic effects of the virus is going to be central banks just turning on the spigots ever increasing i think it's going to be in gold and ten year the gold had that weird margin call last week but seems to have recovered fine so i think that's still good the thing with stocks, it's the virus versus the fed right now, the virus is win, but until we make new lows i'm not worried. i think this is part of the bottoming process and the thing that's different about this

fight is that it has a clock it has an expiration date. the flu season lasts between does through march sometimes into april a couple of weeks, so if it can fight to a draw until then and we're less worried about the economic impact and that central bank liquidity is still sloshing around out there, i think that's good sistfor stocks so not in the short-term, but getting close to where i want to be in again. >> matt, what are people looking for? another thing jeff was talking about is that the market he thinks or he was saying he himself wants a half point rate cut from the fed at the next meeting. what kinds of expectations are we billing >> we're expgting a quarter point when they meet march 18th. that be a surprise once that happens, maybe we reach a bottom maybe the boat becomes too overcrowded as far as people buying bonds maybe they turn to equities. so again, i don't know if we're going to get clarity as far as the coronavirus and the threat that it poses long-term. i would imagine the cases will

increase as testing increases, but certainly, what we need the find is some kind of bottom here in the bond market you know as far as the yield goes it's really not equities just yet. we still could slosh around a lilt l bit lower here. you know 30 50 in the s&p wuas u important. held that, broke through, saw further deterioration to the downside technicals are r very fast >> hang on a second. we have breaking news. what's going on? >> the senate now has the votes it needs to pass a roughly $8 billion emergency funding bill to respond to the coronavirus. the current vote tally is 63 senators in favor. no senators so far have voted against it this is expected to pass overwhelmingly as it did in the house yesterday then be able to move on to the president's desk. earlier today, lawmakers had been briefed by administration officials on the status of the

response to the outbreak they were told there could be a million kits available in short order. this bill will provide not only federal agencies, but also state and local agegovernments the mo they need to purchase these kits t expect to be a show of strong bipartisan support >> thank you very much back to jim. for a quick response kind of your reaction to that news and put a button on it here. >> yi think it's great anytime we can see them working in a nonpartisan way i think the wonderful and sometimes it takes these sort of things to do that. i think that's encouraging you talkeded about the fed lowering rates again and there's so many people out there who have become fashionable to say lowering rates doesn't help this virus, yes, but it can help the economic impact of it. there's plenty of companies that are going b to be affected greatly. some companies might not be able to withstand it and a little extra boost from lending could be a very good thing so i'm for them lowering rates in situations like this what i'm not for is them not

taking away the punch bowl when they should, which will probably be a couple months downthe road >> have you guys stocked up on tp at your house >> i have not. i'm not that much of a a believer in this and please, nobody trust me on this. because i don't know anything. but i don't, i don't see, i don't, i'm not that scare ed abu it sorry. >> just curious. appreciate it. matt is at the new york stock exchange that does it for the exchange. see you on "power lunch. kelly, thank you very much we'll see you over here in a moment welcome, everybody to "power lunch. we start with another major sell off on wall street at this hour. as you see, the dow is down almost 900 points. stop me if you heard this, stocks are tanking as fear of the coronavirus front and center in investor's minds. check out the dow, the lows today down more than 1,000 points right now down more than 900 following