"squawk alley" is live

♪ good friday morning. welcome to "squawk alley." i'm carl quintanilla with morgan brennan at post 9 of the new york stock exchange. jon fortt has the day off. we've cut our losses in half since the open, although oil is approaching below 42 know v now as the opec meeting continues. >> we'll begin with the morning's markets, the dow falling again but well off the lows, down about 380 points. mark mahane knjoins us live alo with mark just in the internet space, the fact

that so many investors are trying to game out what the impact here of covid-19 could actually be on the sector. how are you gauging, how are you assessing risk versus reward within your coverage >> okay. we had a pretty significant data point this week. we had the ceo or the cfo of companies like uber, lyft, and google alphabet all present at an investor conference this week i think what we heard from all of them is not yet a material impact lyft said they were seeing a small positive impact because people were leaving public transportation uber said they were seeing impact at airports but it wasn't material enough and they may have a hedge and google given a chance they have not yet seen a material impact those three stock, uber, google, and facebook in line with the market around 10%. we think valuations are

interesting. no idea how long we'll see a potential impact on the businesses, but we like the assets so on this pullback we're buyers uber first, facebook second, google third >> mark, a lot of uncertainty as this is such a fluid situation in general how are you assessing the stocks that you cover right now and especially when it comes to something like ride sharing? could we actually see names like uber and lyft be somewhat immune or is the worst yet to come? >> it's a good question. ride sharing, we're look at it in perspective of yellow and red. yellow, companies cut out of conferences. then we get into this amber zone where folks try to make the decision, should i take public transport or do private. should i go to a restaurant or order in that's where you could see a long-term lift for some of these

name where is they're bringing new customers on board so i think we're kind of in that zone right now we want to avoed tid the red-lit scenario where everyone pulls back we're monitoring it. >> mark, i'm sure you're aware on facebook, some of your colleagues on the sell side cutting numbers. needham says 6 of the 10 largest advertising countries are covid-19 advertising projections are starting to decline. it's the fastest way to cut costs for big clients. how much of a liability is that for facebook for mark >> mahaney >> sorry there's two marks here look, we -- one of the reasons we like both facebook and google is we thought we'd have up until covid an accelerating global advertising market because of large-scale events like the olympics and the u.s. elections.

if the olympics are canceled, then that clearly is off the table. so far, you know, i haven't seen the evidence yet that those ad budgets have been materially cut back, but these are names that are cyclicals. they were during the last major downturn and if we had a real advertising recession because of this, i would expect google to gonegative i also think that fundamentals for a lot of other sectors would be hurt a lot worse if that were to happen. we haven't seen the data points yet. i get the exposure, but both of these are -- the size of the countries are such they are macro dependent. >> the other mark, want to get your thoughts on this as well. >> yeah. i tend to agree with mark. we haven't seen the data points. we've seen slowdown on brands that get pukts out of china. they've pulled back slightly but the more prolonged a potential downturn or recession could be, facebook and google

are the last that you cut because you're not spending that on budget basis. you're returning sales on the back end of it better than anyone else. >> you just brought up -- >> we are getting a little breaking news in our ear eamon javers has something from the white house. is this about the president's schedule today, eamon? >> that's right. the president's visit to the cdc in atlanta is back on according to the white house press secretary who informed reporters on air force one a couple moments ago. that business had been on the schedule, then was canceled, and the white house said that the cancellation was because the president didn't want to disrupt operations at the cdc in atlanta today. later, the president said no, the actual reason it was canceled because there was a potential positive coronavirus test at the cdc facility in atlanta. now the press secretary telling reporters that, in fact, that person has tested negative so this visit is back on. we expect to see the president in atlanta at the cdc at about

4:00 p.m. eastern later on today, carl. a big change there in terms of the schedule also, a big change in your interview with larry kudlow earlier this morning in terms of the white house's approach to the economic fallout from the coronavirus. larry kudlow now suggesting that the white house is prepared to move forward with some economic support measures for targeted industries, also individuals who are unemployed and harmed potentially. i asked a senior administration official why the change of heart. the white house had been suggesting all week it would not move forward with any kind of economic or fiscal stimulus. this official said they wanted to wait until after the congressional stimulus bill was signed before they started talking publicly about any ideas to support the economy this senior administration official telling me while the economy's basic strength is clear, an international slowdown could have effect at home and the president doesn't want to be caught flat-footed or go to small.

he's no hoover so senior administration official here suggesting the president doesn't want to go small here in terms of this economic response. just want to emphasize, that is a big change in thinking and big change in public rhetoric from this white house on how they'll approach the economic fallout here back over to you >> eamon, a significant develop and one we know that you're watching and you'll bring us details throughout the day about as we get them that's eamon javers with breaking news from the white house. we want to get to brian sullivan, as well, who has breaking news on opec. >> worst possible outcome at the opec meeting just got the communique from opec, which i don't think has been publicly released yet no deal. opec and sears has ended their meeting with russia with no agreement on additional output cuts the price of oil moving lower. watch the oil stocks and the hyg, the high-yield, 11% energy stocks again, breaking news from a source inside of opec, just sent

me the communique. they agreed they would meet again and, quote, monitor the situation and they would basically continue the previous cuts so this was a major failure by op opec no deal. you can see it reflected in the price of oil >> brian, really quickly, we did get below 42 on west texas for a moment and our understanding from the wires is no date on a future meeting, a new meeting >> yeah. bright now the next meeting is scheduled, carl, for june 5th, but scheduling with opec could be very much up in the air listen, we'll see, if they don't meet, that would be an indication that there's a bigger problem inside of the organization or at least maybe perhaps with russia. oil prices are at three-year lows this 2.1 million barrel a day, that's what they got the last time, may not continue either. the big risk to the oil marketer, guys, is if the current deal of 2.1 ends, libya

comes back online, you know, u.s. producers keep producing, all of a sudden we could be looking at an oil situation which is oversupplied by 3 million, 4 hl, 5 hl barrels a day. oil would be in the high $20 range. >> down more than 8% this might be a little bit of a basic question, but to step back and put it in context, we had been getting reports that potentially russia was not going to sign onto a deal here how much of this is due to russia and can opec still move forward with some sort of cut even if that country doesn't play ball? >> excellent question. yes, they could, answering your second one first the saudis can do what they want they want to continue to cut their production, they could probably do it

remember, the problem with opec is they agree to things but they all go back to their nations and do what's best for their own nations. the saudis can do just fine at $45, $40 oil they can't pay for their social programs but the ipo has given them a huge infusion of cash so they're probably going to be okay the rest of that we'll see what happens. listen, russia not a member of opec, obviously. does this sort of end their soft cooperation, if you will is the opec plus framework, is this going to end it and everybody goes to their corners and do what they want? again, i remind you, watch the price of oil watch oil stocks, which of course have been crushed, and watch the hyg, high-yield etf. i don't have it on my screens at home i'm about to drive the office. energy is only 4.4% of the stock

market, but it's about 11% of the high-yield debt market, and an even higher percent of the debt that's coming due in the next two years that's why oil matters from a macro market perspective >> brian sullivan, thank you for bringing us the news and the analysis on the news line. mark and mark, i also just want to thank you as well we're going to wrap up our panel right there, but i'm sure we'll be hearing from you further about tech stocks and what all this market turbulence has meant in terms of investing possibilities in the future. >> thank you >> in seattle, one of the biggest tech hubs as you know, under lockdown as school districts and campuses close due to the coronavirus "the new york times" report, the coronavirus capital. joining us is the mayor of seattle. thank you for joining us on what

must be an unbelievably busy week >> it is an incredibly time here thank you for having us on i want to take the opportunity when i can to thank the front-line health care workers and first responders who are on the front lines of this and really battling this we're very thankful for their work >> as the washington health department has tweeted all week, the pressure is on them, the pressure is on the blood supply according to the department earlier in the week. how would you characterize life in seattle at the moment >> so, i want everyone in the country to know a couple things. one, we must act urgently, but we should not panic. we know we are on the front lines of a spreading disease and that there will be a number -- as testing is more wide scale, we expect it to capture a number of people who may be affected in the community. the good news is most people who contract this disease contract a very mild form and recover we don't have enough on the numbers yet, but we also know there are some people at grave

risk of this and my condolences to all the families who have lost people and those who are very sick. we have to take care of the public health front and the economic front to make sure we get through this in a positive fashion. >> ma mayor durkin, you've can declared an emergency for the city some schools are closed we had a former fda head on our air yesterday and he said he need to implement measures for social distancing, closing large events, et cetera, in some of these area where is the virus -- or the numbers are continuing to increase, for example, in seattle. what steps are you taking and how would you expect that to continue to ratchet up in the coming days? >> so, we've take an number of steps and since the outbreak in china, the whole region has been preparing for this we have weekly meetings. today i meet with the governor and the county executive and

other officials here most importantly we listen to the public and scientific community to see what they think appropriate steps are. number one, if people are sick from work, we want them to stay home we've worked with companies like amazon and microsoft and we are an employee of over 15,000 people we are putting ourselves -- if people don't have to come to work and can work from home, we're encouraging that and we may go to a mandatory state of that we're working with public health people to make sure we really respond to this so we can slow the spread of the virus and have enough in the health care system to take care of the people who are sick >> do you see school closures broadening out from here >> we've been in very close contact with the school official who is make those determinations through the state and the different school districts they're observing it closely so far a we have not had any school that's had an infection, but they'llwatch it closely. the number-one group that is at

most risk of this are seniors 60 and above and particularly older people who have other health problems we're focusing our measures to make sure we have the right social distancing and infection controls arnold those people to make sure they do not contract this infection >> something you've been tweeting about in the past 24 hours has been small businesses in the community are you seeing signs that there could be financial strain for some of those small businesses in seattle if so, what does that mean in terms of possibilities for bailouts >> we are. that's what i raised with the vice president when he was here yesterday. we're very concerned on that part of our spectrum our large companies have a lot of resilience that's built into them, but we're seeing a number of small businesses that may be impaired in seattle. there's over 200,000 people who work at small businesses it makes up the majority of our establishment. many of their workers either don't have sick leave or don't have enough time so they can't

stay home from work, and the small businesses, if they don't have the customers coming in so i want as much direct federal relief as we can into the hands of those businesses. perhaps they have to close for a period of time to help them on commercial rent, to make sure their employees have access to sick leave and health care we're really focused because this will hit our small businesses in a way it won't hit our larger businesses, and as we come out the other end of this, we want to have as vibrant an economic situation as we can >> i want to ask you about a couple things. one is a lot of the criticism about testing capacity in the country, both on the federal level and how the states respond to guidelines out of the cdc how would you characterize that in washington state? and then comic-con, where are we in terms of holding gatherings where there are tens of thousands of people? >> first-time testing, there is no question that our lack of

testing has led and impaired our public health response we don't know the exact contious of this outbreak and we need more testing capability as soon as we can get it i think the vice president heard that in the room from everyone yesterday, from the governor, from me, other city and local officials, from the congressional delegation you know, our scientific researchers here estimate that we have hundreds of people who actually have this disease but it has not yet been detected because of the lack of testing so when those numbers go up, which we expect that they will, we really want people not to panic. we may be finally detecting the number of people who have this disease, and until we know that, we can't make decisions as policymakers on what the next dialing up is to mitigate against the spread of this virus. so, you know, the number-one thing, our number-one ask of the vice president yesterday was to get more testing as quickly as we can if you look at countries like italy and south korea, they have

broader testing, and dr. fauci has said he thinks there needs to be millions of tests performed across the country we need them here in seattle and in the region, in kirkland, the neighboring city where this outbreak started snohomish county if we can get that testing, we can do a better job with our public health response but also knowing if you're sick or not. if you're sick, wash your hands repeatedly keep older people out of social gatherings >> do you go to comcomic-con >> i don't we've been working with the governor, the county executive, other local officials meet with public health every morning to determine what extent we need to be advising people to stay away from any gatherings at all as a city, we've told our employees if there's not essential travel, don't do it. if there are not essential

meetings in the city, we're come v cutting them back. we're having people work from home we're taking distancing protocols, but if we have to move to the next level, we are preparing to do that >> avoid nonessential travel looking for more tests the other question i have in all of this and we've been hearing about it has been issues potentially, shortages potentially around medical supplies or first responder supplies do you feel like first responders in the city have what they need to be able to react right now in real time >> they do right now, but some of our adjoining areas are expecting maybe a shortage it was another thing we talked to the vice president about and they were able to get the national stockpiles to get more of those available here. we need medical things like respirators as well. we're working very closely -- we need the federal government to step up to this emergency in the same way it would with a hurricane, earthquake, or any

other natural emergency. if we do that, if we have enough personnel so they don't get depleted and we have the resources, we can get through this but we need to make sure there are enough resources for those minimum-wage worker who is may not have that resiliency so they can also have some stability i think the market should know there will be an increase in the number of people who have this disease. but we need to know, one, most people get a very mild form of it and recover, so we must focus on those people where the mortality rate is higher and we also have to make sure there's enough uptake in the economy that those minimum wage workers who may be out of work can have stability in their lives. i talked to the governor about unemployment claims as well as workers' compensation claims to make sure we have the reyhency built into the system. >> mayor durkin, we appreciate that very much again, a week that must be taxing for you and all who serve

the state and the city thank you. >> thank you very much one of the most prestigious venture firms in silicon valley, sequoia capital, sending out a memo about the worsening economic situation the memo sates they see a, quote, drop in business activity and project financing could stop significantly. the u.s. markets getting hurt today although off the lows of the session as the virus continues to spread out the country. sequoia partners joins us on the phone today. black swan in 2020, what should people who read the memo make of that >> did you hear the question >> no. >> let me rephrase what carl said the headline of your letter, what did people make of that >> we've seen an outpouring of

reaction from companies and from a broader audience it seems like it's a bit of a wake-up call that we might have a serious crisis at your doorstep >> it came objeut in about 48 hours. tell me that process when you decided you needed to write something like this, raising an alarm, essentially, among your founders and kroesz. ceo ceos >> we had a meeting on monday where we talked about what might happen in the future >> spurred us to think about if this was a good time to help them prepare >> last time you did this was in the '08-09 financial crisis. do you see the situation along those lines getting as bad as that or less severe? >> we hope not we sincerely hope not. this is a serious matter lives are at risk.

there are people being affected by this today. i think back then the global financial crisis was a very different situation and affected fund-raising and capital formation and company's finances far more directly. it may have that kind of economic effect, but we don't know yet >> we've seen macro changes in the venture landscape since the rye v crisis, rise of tourist investors, mutual funds, hedge funds, sovereign wealth funds have become much more involved in private markets how do you think they react? with more fear or perhaps an opportunity to get deeper into the venture andscape >> my guess is fear is going to dominate today if p you look at the volatility in the stock market over the last few weeks, the fact we've had $3 trillion of market cap evaporate from the s&p 500 is in the front of people's minds. >> morgan here i wanted your take on a line that jumped out to me in this letter it will take considerable time,

perhaps several quarters, before we can be confident that the virus has been contained and could take longer for the global economy to recover its footing at least from a wall street perspective, the discussion is around this idea or expectation that this could only be maybe a one to two quarter phenomenon. why do you think it could stretch out longer and what could the impact therefore be >> you couldn't hear let me relay the question. morgan was talk about the timing in your letter you said this may play out through the next few quarters but the economic impact could be much longer. that seems to be at odds with what wall street at large is thinking, that this may have a one to two quarter effect. why do you see the effect of potentially longer >> it depends on the wider economic ripple effect i worry that this may lead to a contraction. it may but if trips are being canceled, airlines are down, restaurant business is down, there's a ripple effect through the

economy where jobs start to shrink and we end up having a self-fulfilling prophesy of a recession. >> we had larry kudlow on this morning saying that we shouldn't panic and everything is under control. do you think that there's a disconnect between what the administration is saying and what you're seeing in the private markets and d.c. >> i agree that we shouldn't panic right now, but i think you need to have a prepared mind that's what we want to do for our founders we've been in business almost 50 years and have seen many economic cycles. we've had companies through the early stages, ipos and on. we want to prepare people for what might be. >> you mentioned business travel is coming down sequoia moved its meeting from yand to half moon bay and now it's going to happen on zoom a number of other conferences are canceled a lot can happen remotely, but the importance of facetime for

founders and ceos and investors, that is going to take a hit. how important is face time >> it's important. we're social creatures there are so many clues we pick up in-person meetings that depend on that relationship will suffer as a result of this but i'm hoping it's temporary. in the meantime, zoom is a massive beneficiary of virtual meetings, which can accomplish a lot. >> if someone is willing to buy a portfolio company, what do you tell the founder or ceo? should they do it in this kind of environment >> to make m&a, acquisitions we had that conversation at one of our portfolio companies in the board materials i was preparing. i think you need to continue to plan to go forward chaos creates opportunity and risk you can take advantage of opportunities.

we had advice in 2000 that we needed to tighten our belts because fundraising may dry out. but we kept hiring and kept growing. >> companies that are looking to go public potentially this year and the next few years, some big ones in your proefrfile i won't ask about them specifically but do you think public investors have a harder time valuing them >> i think great companies can always go public remember how paypal was the first to go public in 2002 if you have a great business, you can go public. second question is about valuation. you see the sell-off in the market right now, there's a lot of uncertainty, so maybe companies won't price as well as they would have otherwise but they're still able to go public. >> in the long term, they make it up. >> in the long run, they make it up we're willing to be very patient. many of our companies, we still hold shares. we're focused on the long run.

>> sorry about the audio issues. back to you guys at the stocks exchange >> thanks for joining us it's not just seattle or san francisco, of course the coronavirus is having an impact across the country including international airports like o'hare. phil lebeau is there live with the story. phil >> reporter: morgan, we are noticing considerably smaller crowds inside airports, particularly those that take in international flights like here at o'hare. we've been here several hours now. you see fewer business travellers it's lighter all around. this is from a research company, and it show kwhens you compare january traffic to february traffic, just showing you a few of the airports here, los angeles, san francisco, chicago, all louer. that that's a reflection of the fact you saw fewer flights from china and asia in terps of the airline's stock today, look at this, seeing some green.

generally speaking, the airline stocks have moved higher today, in some wayscases like united, several points southwest. we talked with gary kelly and he said a week ago they saw a dramatic drop-off in bookings and it was almost immediate. i asked other ceos in washington, d.c., about that, and they all said the same thing, yep, about a week, week and a half ago that's when they started to see the bookings fall off. guys, back to you. >> phil lebeau, than you dow transports are down right now, though not as much as the broader markets, still on pace for a 5% loss for the week seema mody looking at cruise lines back at hq she's got today's biggest movers and what's been a very big week and couple of months >> i want to point your attention to shares of carnival, royal, and norwegian, the u.s. is looking to consider p ways on how to discourage travelers from

taking cruises this is a report from reuters. it comes ahead of vice president pence's meeting with cruise line's ceo tomorrow in ft. lauderdale around 3:00 p.m. in the afternoon, where certainly the industry is facing its biggest challenge yet. it comes amid a rise in cancellations and suspended sailings and still awaiting word on the "grand princess" cruise ship which has hundreds of passengers offer the coast of florida. we have yet to receive a status update on these passengers that is a carnival ship. now we're looking at shares of royal, carnival, and others at session lows a year to date chart, you'll see most of them are down nearly 50% or more. >> let's get a news update from sue herera back at hq. >> thanks so much. here's what's happening at this hour, everyone there are a lot of developments on the international front concerning the coronavirus in the uk, british prime

minister boris johnson announced coronavirus funding during a visit to a research lab. he also warned that the outbreak could last a long time >> it will certainly be a substantial period of disruption when we have to deal with this outbreak how big that will be, how long that will be, i think it's still an open question >> further changes to the olympic torch relay later this month. 140 japanese children will no longer be traveling to athens, greece, to take part in the handover ceremony on march 19th because of the virus the numberover tokyo officials being sent to athens is also being reduced. here at home, alabama executed a man last night, one of two people convicted of killing three birmingham police officers in 2004 the other man, though, later confessed to being the lone shooter. it was the first execution in the state since may.

you are up to date that's the news update this hour back downtown to you, carl >> sue, thank you very much. seema mentioned some of the travel-related names getting a bounce but oil-related names are not. these are the s&p ggdslaar of the moment, all of nesm enerthe 2345i678 at fidelity, online u.s. stocks and etfs are commission-free.

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jifrls a airline blafltser, retailers 367. wanl r stwooechbtd if we can close above that airline stocks had a nice bounce on volume. these have been horribly beaten up for the last two weeks and in positive territory same with the leisure and entertainment sectors here, several moved up, las vegas sands in positive territory, down a little bit here but positive territory earlier all these stocks have had a terrible week. retail, we know big lots, beaches, a big week, both of these. nordstrom, a terrible week, but those were just about flat a

short while ago. not a dramatic sell-off at this point, but carl was talking about energy stocks. brian reported earlier, no deal between russia and opec, so oil is at a 3 1/2-year low even today by the standards of the last few weeks, these are dramatic moves to the downside multiyear lows here. by the way, exxon, 7.3% dividend yield. we have to go back in the record books to see when that last happened new lows on all the banks. not just lower yield but the potential for slower loan growth as well as the potential for additional defaults. they have a lot of money on the street obviously attempts to buy on the bottom, some interesting volume. that means it's not just seller exhaustion, people trying to build the dips but it feels very tentative. >> bob, thanks our next guest, former ford ceo

mark fields joins us from palm beach. thank you for your time today. happy friday >> happy friday, carl. >> so we've been talking all week about supply crunch and demand shock from an automaker's perspective, which is more important right now? >> it's morphing originally it was the supply chain but you're seeing chinese companies come back. you'll see layer in the month maybe focused on smaller automakers who have not proactively reconfigured their supply chains after the events at fukushima a few years ago the issue is the consumer and it comes down to consumer confidence you're seeing the market in china where this coronavirus first had the outbreak, sales were down 80% in february, came back a little bit at the end of the month, but the biggest question is what does it mean

for the american consumer around consumer confidence? and i think to your point, is it supply chain or consumer, listen, in supply chains, they don't have emotions. they don't have fears. you can fix them consumers do, and that will be the big question about visibility for sales for the automakers going forward >> yeah, mark. consumers here in the u.s., consumers in other key markets of the world too china car sales down 80%, germany, car sales down 11% in february would you expect to see more discounting, more promotions, more marketing coming out of the auto industry like after economic economic events in recent decades? >> i think the oems have been disciplined and you'll see reductions in production as appropriate. but we'll have to see going forward where that kind of plays out. and the other thing that i think is impacting consumer confidence

is not only the coronavirus but if you think about it, given average transaction prices of over $34,000 in the industry, it's primarily wealthy, more wealthy consumers buying new cars those are the kind of consumers who tend to have brother-in-law accounts if you looking at your balance and seeing it go down, that will also impact consumer confidence in a negative way. >> whether it's hospitality or retail or in the case of this conversation, autos, i think what coronavirus concerns are doing is exacerbating weakness in some of these different industries going through major transitions already. what do you think this does to companies' plans around investment and around basically transformation right now >> you're right, you have a lot of companies going through transformation so they have to rely on their quote/unquote traditional business to fund

some of these transformations. probably almost every ceo across the country right now is doing a couple things. they're probably telling their organizations first off i want a clampdown on all discretionary spending, i want to freeze hiring, i want to look at all big cap ex expenditures and maybe hold off going into a time of uncertainty with as you mentioned with not a lot of visibility of what's going to happen with the consumer and, you know, with markets in general, and in those cases you ear s s yos you are s clamping down. i also think you'll see a lot of companies going through transformations, they won't let up on investments for the future the key is preserving to continue investments for future. >> do you think this whole episode we're going with and the shock on the supply and demand side, mark, is going to take it longer for them to capture a significant amount of share or

does it happen quicker because what's happening to sales of traditional vehicles. >> when ryou look at eds, the future is bright, but what's the adoption rate? one of the biggest hurdles for electric vehicles is their higher cost than internal combustion engines if you think about an economy that may decelerate because of what we've discussed this mornings, that could make the adoption of evs slower unless governments come through with more incentives, which we haven't seen that here in the u.s. you've seen them pulling back in china on that. that's been impacting sales. so you could argue it may slow the inevitable rise of electric vehicles for the time being. >> yeah. incentives are expensive at both the government and the oems. i wonder how you would rate asian oems versus american

versus european? who's been faster to respond, at least so far >> when you look at the supply chain impact, you've seen asian oems hit harder and part of that is because the delivery times and leaner inventories that, you know, automakers in korea or japan have because of their proximity to china, they've had to shut some lines down. that i mean pact has been delayed in north america because a lot of parts are put on ocean freight, take a month to get here, so you'll see some impact in the u.s., but at least in the current quarter i think for the north american and global oems around the world, you'll see more logistic costs in the current quarter or two because they'll have premium freight because they'll have to fly parts. i think it's still, to your question, i can't kind of handicap them all right now. it's still playing out and i think the real arbiter is

going to be who are those oems that are taking proactive actions now to lock down costs to anticipate a potentially lower revenue over the next couple quarters? >> yeah. finally, the cfo of am exthex ts week said i'm glad i'm not an airline ceo. >> the auto business always has a lot of impact on the economy, a lot of cionstituencies. it's a rough patch, but the industry is used to this and it's a very cyclical business. i think a lot of the oems will respond and, you know, it's a great business of course i miss it. >> mark, thanks for the time as always good seeing you. mark fields in palm beach. >> all right well, the s&p is at 2,948 right now. a reminder, as we head to break, don't forget to download the cnbc app, watch your favorite

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low, the stock down about 26% in the past two weeks there have already been major concert cancellations in asia, including mariah carey and others live nation saying in its earnings call last week the impact so far has been minimal shows across asia and italy in the next three months account for less than 1% of its 100 million fans but the impact of coronavirus will be really felt if cancellations hit the u.s. the first time they're starting the cancellation of miami's ultra music festival tart e sseo start in two weeks if concerns extend into summer, the impact will increase dramatically 70% of live nation's attendance is expected from june till the end of the year. now coachella and stagecoach are both run by division of private

concert company aeg. in may, there's edc in las vegas, governor's ball in new york, and lollapalooza in chicago in july. entertainment festivals are also at risk. south by southwest which starts next week includes music and film festivals there's tri becca in april and cannes in may. then there's comic-con in july hundreds of thousands of people have turned out to these events in past years but this year, even if they're not canceled, the question is whether people will still come. >> we'll watch that. quite a summer we have coming at us julia boorstin take a look at some of the laggards on the nasdaq 100 this morning. there are five names that are green and thesare e the ones that are lagging the most. autodesk, others back in a moment

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welcome back the coronavirus case increasing across the u.s., many are looking to telemedicine to help cut down potential cross infections between health care workers and patients joining us now is the ceo of one of america's biggest telemedicine companies, roy shownberg. thank you for joining us. >> thank you >> when we talk about telemedicine demand for your services, what does this type of product actually enable in a time of medical emergency like

we are seeing now? >> you know, the simple way to look at it is the telemedicine allows patients and physicians to use some of these devices to get in front of each other and the reality is that whenever you have the opportunity to deliver health care over technology and viruses can't travel that way, you have an opportunity to get a lot of good health care to a lot of people with much lower risk i think this is happening very, very fast and growingly. the other piece of the puzzle is that if the virus is going to be primarily located as an infectious disease in a location or part of the country like the west coast we have a lot of health care that is untapped on the other side of the country that can be mobilized through this technology to replenish areas where health care is going to be overwhelmed. the last thing that people are starting to think about is the virus unfortunately does discriminate by age. elder americans are much more likely to have worse effects of the virus. if we can use telehealth to

allow that population to gradually get more and more of the health care that they need from their home rather than to show up inside a hospital or a clinic orwhere a lot of bad thig are, other people and other viruss >> yeah. >> we can probably reduce their exposure to potentially contracting the virus. >> key points. it sounds good basic question here, what can actually be done how effective is it to be able to assess somebody's health condition over a video >> i think it really depends on whether you are on the worried well side of the public that doesn't know if they got the disease or whether people who are sick and trying to figure out if it is the virus or not or regular pneumonia. or what we are worried about people in isolation, people who need to be at home knowing they have the virus and trying to contain it the different protocols around that are well refined by cdc that's their business.

i don't want the intrude on that one thing that is very, very clear is that in every one of the cases where you don't use telehealth you are forcing people to aggregate inside care facilities where whether they do or don't have the virus are either going to create overwhelming of the system or going to infect other people so using technology that is 100% safe, viruses won't travel over it, has a lot of merit in this kind of circumstance >> if it starts to, then we have got real problems. i wonder, is there a disconnect between the types of he patients, as you said, the elderly, who are more often a victim of this, but are they less likely to adopt this kind of technology? is there some asystem tree there? >> we actually -- this was something that everybody thought about five, ten years ago. the telehealth is only for the young tech savvy the reality is that it really isn't. especially growingly now that a lot a lot of physicians are telling their patients they are going the follow-up with them through technology rather than

require them to do the lengthy trips to the hospital. we actually see an equalization of the use of telehealth especially if when you talk to elderly patients to say you can use that to get in front of a physician without the risk of actually contracting the virus i actually think you are going to see a lot of use for that in the other populations. >> how much is demand for your services up right now? >> we see growth we see kind of a growing peak. i would say probably 10 to 15% growth. >> okay. >> that can be attributed to this we are going to find out over the next couple of weeks >> all right roy shownberg of american well, thank you for joining us today >> terrific. thank you. thank you for having me. it's been a amount of chop on this friday morning, s&p was down 101 points shortly after the open we managed to repair that, roughly in half. currently down 76 points on the s&p. watch the vix, still elevated

before above 47. next week we will get ecb, more primaries out of michigan and washington the coronavirus and politics will be part of the mix. >> huge moves in the crude margaret right now also subsequently in energy stocks and the s&p >> all right so everybody have a good weekend. try to get a rest inand get ready for monday let's get to the judge and the half >> carl, thanks. i'm scott wapner, this is the "halftime report." front and center, your money on another wild ride in what has been another wild week. >> we are looking at potentially 2600 by the end of the year for the s&p. >> you always want for everybody else for things to get better. for us we need things to get worse. it looks like we are going to be entering that phase in the next couple of quarters. >> i think it would be premature to take on a lot of risk assets. our target for the ten-year note is 25 basis points. >> wow. >> and the long bond at 1%. >> if the risk markets come