wall street. i must insist, this is not a freefall by any means but it is a very sharp decline. we're down 900 on the dow as we speak. my time's up. here neil. neil: neil, a large number. people raised their eyebrows here. you and i can remember covering the '87 crash. we dropped over 500 points. that was a quarter of the dow value at the time. in percentage terms i'm not trying to gloss over this, not as bad as would appear. knee-jerk reaction. stuart: not a freefall by any means. neil: exactly. great show, my friend. we'll pick up the baton. the coronavirus fears it is spreading, affecting the global supply chain. now that it touched italy, south korea, iran, iraq, a host of european markets. that is a development we have not seen in the past. now we're going to iron this out in just a second here. to put it in perspective, those in europe now concerned about this escalating in italy, what

appear to be lockdowns in a number of italian cities, that's reason enough for not only in this country but certainly in europe for hotels, airline stocks, casinos, and cruise lines to be taking it on the chin here. what is interesting, before i get the read here in the united states, is what has happened to european airlines like easyjet. that is the discount budget carrier. that is down an excess of 13%. ryanair, 13%. deutch lufthansa close to 10%. air france-klm, about 9%. i could go on but just to i illustrate what is impact here on percentage term is bigger impact there the selloff is revisiting session lows. right out of the gate we were down close to 1000 points. right now, the dow underwater for the year with 922 point hit.

deirdre bolton at new york stock exchange. reporter: neil, we're negative on the dow and awfulally close on s&p 500. we need to hit 107 lower to completely wipe out the gains from 2020. let me tell you some groups. you covered some weighing on these markets. if you look at any tech-related stocks down across the board. so you have chipmaker stocks, micron, qualcomm, nvidia, texas instruments are weighing on sector most heavily. yet you have tech overall. we've been talking about amazon and apple. apple saying last week sales this quarter would be less than what the company forecast because of disruptions to the supply chain. apple gets 17% of its revenue from china. amazon we reported this morning, actually it was "the new york times," amazon is sending out somewhat urgent emails to some of the companies that supply it

for amazon's prime day. you may say, neil, who cares, that is in july? in 2019 amazon locked billions of dollars in sales. sold 175 million items in that 48-hour period, the most, if you like profitable two-day stretch for that company. that event is very important to them and they are trying to address with some of their suppliers potential disruptions to the supply chain. airlines, you mentioned some european ones, i'm following some of the u.s. ones here. delta, american, jetblue, down across the board. since you mentioned european airlines, quantas, not obviously a european airline, saying it will log a loss of $100 million in the first half of fiscal year. based in europe, klm air france is saying more possibly in the first half of the year. many airlines all over simply canceled flights to china. you were talking about italy as well. traders on the floor here as

well, outside of asia, italy is the number one spot with the highest number of infections. outside of the asian region, it is italy. you talked of course about, we had fashion week in milan. many shows outright canceling. lascala shows outright canceled. carnival, that was big blowout event, in venice, all those celebrations have been canceled. northern in the country, lombardi, that region, schools are closed, public venues are closed. so this effect is really being felt very strongly in italy, a place with the largest number of infections outside of asia. we certainly saw that show up, the concerns show up, italy's market closing down lower than 5 1/2%. neil, to your point this virus really is beginning to be felt in all kinds of companies, european companies. we knew always asians would be

affected. european companies, american companies. back to you. neil: yeah. that is what made them move to the european continent. great report as always, deirdre, thank you very, very much. explain what is going on italy, why it unnerved investors, prompted equivalent of our dow jones industrials to slide 5 1/2%, were these reports 10 italian cities are in their own quarantine. that is the first of such significance outside of china. i want to flip around say, not all awful. well, money always find as place to park in the interim. right now gold is a huge beneficiary. it has been through thick and thin. in other words through dramatic developments and not so dramatic developments. gold the beneficiary, in and out of almost 8 year highs. treasury notes and bonds is leading to a collapse in interest rates. in fact we're getting very, have he close to all-time lows in mortgage rates. a 30-year mortgage right now is fetching a little bit under

3.25%. think of that. i know i like to remind people who wonder how old i am that is what my wife were paying per day when we got our first mortgage. not exactly but that gives you a idea how low interest rates are. many look at the development sign of a floor to stocks here, especially when you compare the yield you can get on a lot of stocks with what you're getting on a bond. eventually people say you know what? i like those stocks. we're not quite there yet. a guy that knows history very, very well. i think the best head of the new york stock exchange they have ever had, dick grasso joins us right now. dick, very good to have you with us on the phone. >> neil, always great to be with you. neil: thank you, my friend. what do you think of this? you have covered more and been there at times of big selloffs, this is feeding off itself as we revisit lows we reached this morning, is it just the

coronavirus? is it a good opportunity for many to take their profits and not get too greedy, capitalize on the gains they have had, what? >> well, neil, a couple of things and most importantly for your retail investors who are watching, traditionally a retail investor reacting to a day like today inevitably does the wrong thing. they sell. remember, we're down 3 and a fraction percent. as you pointed out earlier on october the 19th, 1987, we were down 22% in one single day. neil: right. >> if you had bought on that day, if you had bought in 2001, 2009, you would be smiling. as a matter of fact, if you had bought the day that donald trump was elected you would be smiling from ear to ear. retail investors have got to simply take a couple of aspirins and call neil cavuto in the morning, all right? i would say do nothing at this

point. clearly the -- neil: when you say do nothing, what do you look for, whether this feeds on itself? i remember when you reopened the markets after 9/11, you were prepared for the selloff that ensued, not only the first day but the few trading days after that but you had confidence things would stablize. they ultimately did. that is a scary ride for a lot of folks though. >> well, you're right, neil, i'm saying do nothing for those who are owners of stock and considering should they make a sale now? the answer is history will prove you to be wrong if you do. i think, what i'm suggesting is that investors, whether it be, or long-term capital appreciation for the education of one's children, whatever the objective was, that they sit down, after the close of the business night, sit down, talk to their financial advisors, talk to their family members, ask the question, why are we in this market? if you're in this market to

educate in college terms the very expensive tuition of a harvard education, in 12 years, well, harvard's not accepting 8-year-olds. so just look away from what is happening now. i would suggest, neil, that how many times have you and i said to ourselves, after the election of donald trump, gee, what a great opportunity i missed when the dow was at 16,000, 18,000, 20,000? now it is come in a little bit. it is down 3%. you know why not, dip your toe in the water. do the reverse of what retail investors are inclined to do? if you want to invest a dollar in the market, put a third of it in the market today. put a third in a week from now and the other third a month from now. i think you will be a happy investor at that point. neil: warren buffett of all people echos your theme. he says it's scary what is going

on but he wouldn't sell any stocks. longer term out look for stocks he said in an interview today was still favorable. do you agree with that? i guess the definition would be what is longer term? >> neil, i would never disagree with warren, having called on him in 1987 when the stock was 2700, okay? dick, it is overpriced. where is now, neil? 340,000? neil: right. that guy always forgets, he never splits, does he? if you're talking to investors, again a lot of time, it really depend on their age, right? i mean if you're an older investor and you mark long term, in terms of what am i going to have for lunch tomorrow. that is one thing. but if you're a younger investor and you have a multiyear time horizon, five, 10 years, how do you advise them? >> younger investors have great opportunities on days like today. you have to be stock specific.

if you're not knowledgeable on specific stocks, you buy the index, okay? neil: right. >> if like, me, not you, neil, i'm, i'm own the 17th hole at this juncture in my life, okay? you're worried about next month, you shouldn't be in the market or you should modulate the risk you have on the line. i can't tell you the number of people in the business world and in the investor world who i have talked to who said, my god, why didn't i buy stocks when donald trump was first elected? remember that night, the night of the election, the market was down six or 700 points and -- neil: future were tumbling, right. futures were tumbling. they quickly reversed. they quickly reversed. >> i got calls from friends, what should i do? back up the truck and start buying. neil: let me ask you this. we have a 11-year-old bull

market, economic boom going. a lot of people say it is due for at the very least a correction. do you agree that we're due at least for a correction, whether it is 10%? gets a little nerve-wracking people hear possibly of 20%. that has happened. it is not the end of the world, but what do you see? >> in any secular bull market there will be corrections. we're in a secular long-term bull market. use the pullbacks as great opportunities to buy great companies. neil: well-put. well-put. dick grasso, see you on the 18th hole then whenever we see sort of putter around there. >> i'm a lot older than you, neil. neil: please. >> you're on the front nine. neil: i wish i were, my friend. dick grasso, thank you very much for that. to put a little in perspective, you always want to look at both sides of this. money finding a safe place to

buy bonds and gold, buoyed by the talk we're getting out of the housing industry, mortgage rates already better than 4-year lows. a 30 year mortgage will set you back all of 3.25%. this could lead to a new boon in refinancing. i was talking to a mortgage refinancing expert earlier this morning who was saying, he sees it distinctly possible we could see triple digit year-over-year advances, those applying to refinance homes they're already in or to get a second loan on a home they're already in. whether that is a wise strategy or whether you're adding more debt, it is cheaper to get that debt today. in the past that sometimes provides a floor to stocks or otherwise it makes the whole market look more affordable. we're going to get into that and why that can work to your favor as an investor right after this. ♪. there's smart and then there's street smart,

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neil: all right. revisiting session lows just a couple minutes ago. we had dropped over 1000 points on the dow jones industrials. as eye-popping as that is, that is 3 1/2% of the value of the dow 30 stocks collectively. that is a big number. i'm not minimizing it. but as i willlous straighted in the prior segment back in october of 1987 we fell a little more than 520 points. at the time representing about a quarter of the dow's value then. numbers are much bigger. points are eye-popping but in percentage terms, they're still eye-popping but not as. i want to let you know foreign markets the world over under same selling pinch, asian markets, european markets, even the indian stock market where the president is visiting today.

the index down about 2%, the rough equivalent of our dow jones industrials. the president visiting there and talking up renewed alliances between ourselves and the country of india, including a big trade deal for defense orders. the president earlier today. >> i am pleased to announce that tomorrow our representatives will sign deals to sell over $3 billion in the absolute finest state of the art military helicopters and other equipment to the indian armed forces. [cheering] neil: all right. that might be the start of something promising because trade talks between our two countries are expected to get a little heated. you wouldn't know that with the leaders today but it could get that way. former u.s. ambassador to india, richard bremer with us. ambassador, good to have you. >> good to be with you, neil, thank you. neil: how do you see the trade talks going?

it is probably a good positive sign the defense deal but obviously some rough areas to get into? how does it play out? >> there is some disappointment to the fact that the two sides have been talking nearly for two years and this was an action-forcing event to have a head of state visit to come away without a deal but i also think it is important to put this visit in context. india declared its independence in 1947. since 1947 only six u.s. presidents have visited india and we spent most of that time, that 72-year period since india's independence really on two different sides of the cold war as india was aligned with the soviet union and we took, obviously a very different path. so the modern relationship with india starts in about the year 2000. from that point forward we have made pretty incredible progress. it's no surprise that deals like these are very, very difficult. now the defense deal you

mentioned has been in the works for several years and it's good that one is finally getting across the finish line. we want india to have a strong, capable military. neil: i'm wondering on the other areas, the argument has been, certainly among u.s. trade officials that we always complained about china but that india is the one that is really ripping us off to quote one of them. is that true? >> i don't think that's fair. i think, again, if you mark the start of the u.s.-india relationship at about the year 2000 with president clinton's visit our trade ties have surged. we're now at about $150 billion. of course our people to people ties have surged. india traditionally had a closed market. it has been a difficult market. that is obviously changing as india gets more connected with international trading system and our businesses do more trade but i don't think it is fairnessly talking about ripping one country off.

this is a country that is a democracy in a difficult part of the world that is becoming more open and more, kind of connected to the international trading system but it will take time. it is certainly not a trait line. it is a difficult road to hoe as we just talked about with two years of trade negotiations coming up with very little. neil: all right. ambassador, thank you for taking the time. i do appreciate it, sir. >> thank you. neil: you're not imagining things at the corner of your screen seeing this broad-based sell off in the dow jones industrials. underwater for the year. s&p underwater for the year. the nasdaq still up 4% on the year even with today's selloff. we should look at the health care sector, this might be bernie sanders post-nevada strong caucus play, that he wants to all but shut them down in something for "medicare for all." whether you think he is getting nomination, whether he has a

chance to be elected president of the united states. his strong harsh words for the industry, weighing on a lot of big health care providers, united healthcare, a host of others, some of the big, from tenet healthcare, aca, some of the others are very big in this arena, they're also taking it on the chin, that might be more directly related to bernie sanders than anything happening on the coronavirus front. we have a lot more coming up including the white house, speaking of coronavirus, looking to get money from congress to hop on this, to get ahead of this, after this. ♪. liberty biberty- cut. we'll dub it. liberty mutual customizes your car insurance so you only pay for what you need. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ you wouldn't accept from any one else. why accept it from your allergy pills? flonase relieves your worst symptoms including nasal congestion,

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♪. neil: want to bring your attention to another big story today. the manhattan district attorney is speaking right now on movie mogul harvey weinstein being found guilty of rape and sexual assault. he already has been thrown in jail but he had a not guilty on 3:00 other counts.

nevertheless the ones he is looking at could keep him in prison for the rest of his life. let's listen into the d.a. >> and especially to harry galvin, meghan hast, and john. who conducted a terribly difficult and meticulous investigation and performed masterly at trial under the brightest of spotlights. and finally to the survivors ever harvey weinstein, i owe and we all owe an immense debt to you, who had the courage beyond measure to speak your story to the world, to this courtroom, at great personal risk and in great personal pain. to those of us who were privileged to be the in the courtroom when they testified, you know what i mean. these survivors weren't just

brave, they were heroic. words can't described a caughtly the sacrifices the survivors made to pursue justice. weinstein with his manipulation, his resources, his attorneys, his publicists and his spies did everything he could to silence the survivors but they refused to be silent. they spoke from their hearts and they were heard. they were heard by weinstein's other survivors and by sexual predators all over the world, they sacrificed their privacy and self-protection knowing better than anyone the extent of weinstein's power, manipulation, retribution and abuse. to them i would say you broke silence to hold him accountable and believe me, when i say that because you have done so, a generation of sexual assault survivors and all of us heard

your every word. thank you, i will take a couple questions. reporter: sir, are you fully satisfied with this verdict or in some way you came up short? you mentioned could be as little as five years. >> i'm certainly not dissatisfied by the verdict. i think this was a very difficult case, a very challenging case and a case that really moved our understanding of what sexual assault is, where it can occur, shattered myths think had been part of the criminal justice system for a long time. so i believe a founded conviction with maximum up to 25 years, it is not the top counts of the indictment but by no means am i disappointed with the jury's unanimous statement that harvey weinstein is guilty of sexual assault. any other questions? >> reporter: annabelle sciora

and -- appears jury repudiated their testimony. do you have any concerns that women will have to endure condemnation, at the hands of weinstein's lawyers? >> i think with regard to jessica mann, harvey weinstein was convicted for rape in the third-degree. miss scio-aa took great risk and was in substantial pain testifying about what happened to her many years ago. i can't look behind the jury's verdicts or how they arrived at that. we have to respect that process but by no means is it a statement against miss sciora or against anything she said in court. joes find away to a solution they believe adequately brings them all together with a you unanimous verdict. in terms of the cross-examination, i think we saw cross-examination of the kinds wave seen for years and years and years. i hope that with this verdict it

will become more obvious that those kinds of attacks on on survivors and victims when they're on the stand, making it seem like it is all their fault will be realized as legal attacks that just simply are no longer going to work in this day and age. neil: all right. saying it was a good day for prosecutors and the women who have charged movie mogul harvey weinstein with all sorts of offenses over the years. in the end weinstein was found guilty of a committing a criminal sex act in the first-degree involving at least one woman and rape in the third-degree involving another woman. you might have heard some critical comments from journalist host were saying that he was also acquitted on the more serious charge of a predatory sexual assault involving two women, mir ran haley and jessica mann. two counts he was found guilty could keep him in prison rest of

his life up to 25 years. he is 67-year-old man, you can do the math. if it is the latter he can be there the rest of his life. in fact he is in jail now. more after this. every year, our analysts visit thousands of companies, in a multitude of countries, where we get to know the people that drive a company's growth and gain new perspectives. that's why we go beyond the numbers. t. rowe price. invest with confidence. instead of using aloe, beyond the numbers. or baby wipes, or powders,

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♪. neil: all right. the president might be halfway across the world right now in india but the dow down better than 1000 points as it continues to grapple with the implications of this coronavirus. we do know that the president plans to ask congress for some more dough to deal with this, at

least a billion dollars. hard to peg it where it would be but to avoid what's happening within china, and what is happening in other countries mushrooming here. south korea is a good example of that. t went to a few cases little more than a week ago, to 763 cases reported today and five deaths. blake burman at the white house with the latest on the money to fight this here. blake? reporter: neil, i'm told there are competing voices now at the senior level within the trump administration just exactly how much money should be put forward, just how big this ask should be for more money to comb bat the coronavirus and funding for it. i'm told that the ask from the white house likely to come at some point this week for the folks up on capitol hill but white house is not yet saying exactly how much money they will ask for. here was the deputy press secretary hogan gidley earlier today. >> we need some funding to make sure we protect all americans. that we keep us safe, we keep us

well and this president was out in front of this, took a fully aggressive approach putting together the coronavirus task force. reporter: all that task force is meeting, speaking every single day, sometimes couple times atoday, including every now and again with meetings at white house. president, by the way, neil, is being briefed daily. the trump administration begins today the new definition of a public charge. applicants for a green card or a visa will essentially have to prove they will not be a financial burden for the government. the administration says this was a major priority for the president but critics say this essentially amounts to a wealth test. >> it is not a moral judgments on individuals. it is an economic one and we expect in america as we have for over 140 years that people seeking to be long-term immigrants here, maybe join us as citizens will be able to stand on their own two feet. >> because it is so broad, it is

so vague, i because it is inherently objective, it has a chance to reduce legal immigration to the united states. again, that is bad for businesses. reporter: neil, the new rule put forward by the department of homeland security, for example, those getting a green card or visa, will have to show their credit score as part of that application process. neil? neil: thank you, my friend. could a sudden, unexpected crisis pave the way for bernie sanders, even with some critical comments he has been making? jackie deangelis has more on all of that. reporter: good afternoon to you, neil. fresh off his win in nevada bernie sanders seems to be the front-runner for the democrats here. he calls himself a democratic socialist. in an interview with "60 minutes" last night he laid some things out. he wants to promote more social programs. he wants to copy the scandinavian companies. he calls president trump a pathological liar and a fraud.

that president trump benefited from corporate socialism. what would be wrong with democratic socialism? there is the issue of russia, with reports trying to meddle the election again getting sanders the nomination because he would be easier for donald trump to beat. sanders said a very clear message, russia you will not interfere in the election a comment on cuba has drawn attention. listen. >> we're very opposed to the authoritarian nature of cuba. it is unfair to simply say everything is unfair. you know when fidel castro came into office, you know what he did? he had a massive literacy program. is that a bad thing because fidel castro did it? reporter: he is criticized. what is sanders trying to do here he is trying to soften how americans think about socialism making that statement, look, not every part is so bad. it is a strategy that could be effective gaining support from some people out they're still undecided neil. neil: what is remarkable about

that statement is, talking about teaching a lot of people to read after you killed a lot of people to get into power. reporter: there is deferral -- definitely irony there. for those not as informed they may not see it that way. neil: jackie, thank you very much. look what is going on with health care stocks. that is separate from the coronavirus thing. this is me saying this, maybe built on a bernie fear, if you will, the notion that he is looking more and more like a real comer in the democratic race for the presidency. that he could get the nomination and maybe this view that he would be instantly dismissed. some of the harsh things he has been saying about health care in this country and how the big health care providers are ripping you off, he wants "medicare for all," that might not necessarily be a winner right away, but people are selling those issues now. asking questions later as to what chances he has. but remember, no one thought donald trump had a chance four years ago. there is that thing, history. let's go to francesca chambers,

mcclatchy white house correspondent. it is an interesting read, one pocket of the market to look at for whom a bernie sanders presidency would obviously be a problem to put it mildly and i don't think they're dismissing him out of hand. what are we to make of his rise right now? >> so i wrote an in depth article about how there are republicans who do not want to vote for president trump in this election who are also saying they will not vote for bernie sanders and among the reasons that they wouldn't vote for bernie sanders, were not just his views on big government programs, they were also citing his past praise for authoritarian regimes, particularly in cuba and also in nicaragua, and his refusal to say that nicolas maduro in venezuela is a dictator. now for the argument for some of them as to why they would be willing to vote for bernie sanders, even though they don't agree with many of his policies,

some people actually said they believe that congress would act as a check on most of those policies so that you probably wouldn't end up seeing a "medicare for all" or some of these other programs that he wants. neil: very good point. reminder that this sell off in that area, all, you know, sectors are down today and all roughly by the same rough percentages. so, this is particular interest though because it faces political headwinds no matter who might come in because republicans and democrats have been saying for some time, we got to rein in the growth and cost of health care. it would be very injurious certainly with a bernie sanders but not exactly scot-free under re-election of donald trump? >> exactly. health care is something that both parties have said that they would like to revise. we also talked about prescription drug pricing and coming with a plan to rein in those, those prices as well and of course again they're -- there

is "medicare for all," regardless what a democratic president bernie sanders would do. pete buttigieg is "medicare for all" who want it. joe biden wants something a little better than the affordable care act. neil: right. >> health care is going to be an issue in the future regardless who their nominee is and who wins the presidency. neil: never as we learn, don't bite consensus. often times it is very wrong. we'll see. always good to see you, my friend. >> thanks, neil. neil: the coronavirus is already weighing on things that you would say first, what? there is a big toy fair going on showcasing the toys hot this christmas. that is if you get the toys in time for christmas. a good many are made in china and all points east and it's, well it's kind of bad in all points east. so they're not toying around with the very real possibility their business is hurting after this. ♪.

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neil: not surprisingly anything connected to china not doing well. one etf is down over 3% own the virus battle concerns and whether china is up to the task. i shares china cap fund is sort of a proxy for that market. scott martin, capitalist pig hedge fund manager jonathan hoenig. jonathan, is this overdone or is this a good excuse for many who locked in noise profits to sell? >> when it comes to the chinese market i don't think it is overdone at all because what china is doing. they have been engaging in massive intervention, trying to prop up the market anyway they can, requiring large investors

to hold stocks, not even sell them. just as we saw in 2018 when our own market, our own government tried to prop up stocks that failed miserably. my opinion, the selloff in china and here in the states is early stages here what will be a bigger, longer term selloff. we're certainly due and the coronavirus is giving people an excuse. neil: one thing i noticed, scott, until italy came along here and we have number of cases, quarantining 10 cities, that is out of the blue, that scared people. that and a report that the number of cases in south korea went from virtually half a handful to 760 plus. all of sudden people are saying, wait a minute what is the real deal with this? what do you do as an investor in the middle of something like that? >> the italy turn here, neil, over the weekened seemed to be one that pushed it over the edge. i don't know if we're not worried about getting enough pasta here in america but the reality is this, it is

definitely spreading. the numbers you mentioned especially with south korea are very damning. as an investor before, we talked about it before on the shows, jonathan talked about it as well, obviously a time when you're an investor long term in your nature here, you have other things in your portfolio other than stocks tied to china. it includes things like gold, includes things like cash and for rainy days like this. i think jonathan is right, things will probably get worse before they get better. don't forget, similar to 2018 around -- 2008 and 2009, there were amazing buying opportunities. i don't think this will be any different. neil: gold is jumping, not surprisingly, jonathan hoenig, i talked about this and a lot of people say, oh, you talk about gold too much. but what is remarkable about gold it is climbing through crises and no crises. i'm wondering what that is about? obviously getting a big push on a day like this but what do you

make of that? >> this is a long-term trend. that is the way markets tend to work, not massive one-day moves but long-term trend. gold as you point out gold has been going up since the middle part of last year. a seven plus-year high today. what is bullish especially for gold, when i look at the stork market, almost all stocks at 52 week highs are gold stocks. i look at early 2000s. gold went up for a decade from turn to 2012 in effect. i think we will see a long-term move. $1600 a ounce seems expensive but all precious metals are at all-time highs and gold could follow suit. neil: to show you how wide the impact is as both point out. look what is happening at the big toy fair now. when the industry struts its holiday stuff, what looks promising for the christmas season which to these guys which is like something you planned for yesterday. this whole coronavirus thing is

disrupting that. lauren simonetti at the javits center with more. lauren? >> neil, hundreds of millions of dollars at the new york toy fair. the issue you might get the orders but where is the product coming from? over 80% of toys are made in china and there are supply issues in china. i was talking to the ceo of mga entertainment which makes the most popular toy brand in the world, ll surprise, those popular dolls and he said, look, the factories are back open but they're idle. they're idle because the raw materials are not coming in so they can't make the toys. they were supposed to start the christmas production february 1st but the chinese new year and the coronavirus fears putting that completely halted. he is worried. so are many other people here today. i have the editor-in-chief at the toy insider joining us now, just to kind of explain how big

of a problem is the supply coming out of china right now for the entire industry? >> it is becoming a little bit of an issue for some companies. right now we're looking potentially a four to six week delay on spring and summer items. so far we can get through the easter season. many companies had extra product held over from last holiday. >> they have extra product from last holiday and front-loading tariffs. >> everyone was concerned about the tariffs coming out of china. a lot of companies ordered a lot of extra product. it gives retailers chance to get rid of the overstock. >> another thing, neil, to send it back to you, the president is in india today and tomorrow. there is a real possibility that india might be a new source for some of these toys. is that correct? >> yes. some companies are already manufacturing in india. it is definitely a channel a lot of companies are looking into. >> all right. neil, back to you. neil: that is very interesting, reason said markets are down 2%,

absorbing some body blows. a lot of companies are saying they might have a coronavirus cure but that sometimes is easier to detect than not, depending on the company. charlie gasparino has been looking into all of this? >> two big, i would say business stories coming out of this besides the obvious market reaction is, i am talking to a lot of hedge fund traders they believe this is overblown. how rational wall street looks at stuff, overly rational. they're basically calculating the death toll of the coronavirus. what they're saying don't equate this to the bubonic plague where everybody dies. that is how they're looking at it because the initial market selloff is catastrophic. we're down 1000, 900 points right now. this thing is not, as bad in terms of a death toll than -- neil: scare them the fact that it is much more widespread than earlier thought. italy saying that 28, 30

countries now. >> those are bad headlines, no doubt but just remember this is not something that everybody automatically dies and people touching something and dying. the market is reacting to that. the thing that scared them, china, reaction to it, lack of real information. it was a very bad way that china handled this out of the gate. markets are skiddish on that. traders are factoring in. we're at dow almost 30,000. we have low interest rates. why would you not use this as an opportunity to take some profits? neil: you and i can look at this, we remember the '87 crash, i repeat this, dick grasso and others, 900 is not to sufficient off but 3500 points off was a quarter of the dow's value. >> we have massively low

interest rates so where will you put your money? neil: are they saying that the maybe the market pull medicals are changing as we speak? >> something to take money off the table that hasn't impacted u.s. businesses. as lauren pointed out supply chains can change very fast. market adapts to that. this is other business story, i know a few people in this business, there is a flood of products being thrown at the fda right now to try to cure or develop a vaccine for coronavirus and we're going to be seeing a lot more stories about this. here is the conundrum that i guess the fda has, the government. you know, on one hand a lot of these things are scams. you know, on the other hand people would like to try this stuff fast. the fda process is notoriously slow. those are two things i think you will probably see the trump administration at some point address this because the products are now being flooded

to government, to go through the various fda phases. there is three phases to it. it could take a while. neil: right. >> it will be interesting to see if the trump administration fast tracks any of these. some of these look more promising than others. some of them look promising because they don't necessarily have a side-effect immediately that, you know, people are not going to die from taking the product themselves. neil: right. >> so the fda does have to wade through this stuff. that is the other business story here. the fact of the matter here is, these big pharma companies are flooding the government. they have to wade through these various things and we have to see how it goes. would i say this if you're a small investor out there, there is a logical reason the market is down 1000 points today and it's not because people think the coronavirus will stop the economy in its tracks. there is a bad headline. there is no other reason to take money off the table when you have interest rates at such low

levels. neil: that is the hope at least, for those long the market, provide a floor. >> that's why. i'm not saying, listen, now is not a bad time, if you've been in the market since dow 20,000, why not take some money off the table? neil: maybe that is what people are doing. >> put it in muni bond. i like muni bonds. triple tax-free. all the great muni bond sales. i miss him. neil: thank you, my friend. he is right. for now i mean they are selling and maybe addressing some of these other concerns later. the dow off 982 points. only issue that is up, i stress anomaly up on the dow 30 is verizon. i have no idea why. we'll have more after this. imagine traveling hassle-free with your golf clubs.

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neil: all right, it is not just us, the dow jones industrials in around a 1,000-point freefall here, so we're revisiting lows we had in this morning and topping them. we're keeping an eye on that. in europe, asia, africa much of the world where we're seeing anywhere from 2-5% declines. the big catalyst was the idea that italy all of a sudden is locking down cities, ten of them in quarantine now affecting upwards of 50,000 people. ashley webster on what's happening aced broad that we're missing now. -- abroad that we're missing now. >> yes. it put a chill through the markets, we've been so focused on china and those countries nearby, but now all of a sudden italy crops up. we have the media in italy saying there are now 7 deaths even though the government only confirms 5. as for the number of cases in italy, 230 confirmed. that number is expected to go

up, and the problem here is that the italian health authorities say they cannot track down who they believe is patient zero. and they also believe that this individual could be showing little or no symptoms, so they have nod idea, and they're continuing to move around freely, and that's why we're seeing this outbreak continue to go, to carry on. as you said, 50,000 people mainly in lombardi, two regions of northern italy, lombardi which includes milan, and venuta, which includes venice. by the way, the venice carnival which is a big deal this time of year has closed down early by a couple of days. those people in lockdown not allowed to go out, do anything without permission, and you're looking at video here, neil. forty people at a time are allowed to go together to the supermarket to replenish their goods because they are basically confined to home. the italian index today, as you can see, down basically 5.5%, one of the biggest losers of the

day in europe. but the big question is we know europe has open borders as part of the schoen again agreement. now that's starting to raise questions. we had a train overnight going from venice to munich and it was stopped at the austrian border because there was concern that a couple of passengers on that train were exhibiting signs of coronavirus. all those rail lines were shut down for a couple of hours. they are reopened, but austria's now got a task force to decide what to do next. as you can see, the european stocks, the car stocks, ferrari down, the airlines getting absolutely pummeled, air france down 8%. having a big impact how this plays out in italy and whether we see the virus continue to spread north into the heart of europe, that too could be a major concern. the other thing i just wanted to mention quickly, neil, the world health organization says it's not reached the there'll of

pandemic -- the level of pandemic, but a lot of people are looking at iran saying they're very concerned because there's a lot of questions about whether iran is able to handle the outbreak of croak that virus. some reports say there's at least 50 cases, others say more, but there is concern once this thing gets loose, especially in countries not well equipped to handle out, we are looking at even more problems. neil: very good point, all. ashley, thank you very much. and he was talking about the world health organization that has also said despite a reluctance to declare this a pandemic, that it does see a turning point in wuhan, of course, the epicenter of all of this, ground zero, if you will. but reports out of wuhan, they don't agree. they've got to get on the same page there, so we'll be watching that closely. inside china, fears that businesses and factories had been forced to keep their doors closed for good even those that just recently reopened them to allow at least some part-time work getting done, now shut again. susan lee has the very latest.

>> reporter: we heard from xi jinping this weekend calling it a grave situation in reference to the coronavirus, and some say china will take a $1.1 trillion hit to its economy, so that has reverberations a around the rest of the world as well. wuhan, you just mentioned it, they partially lifted some of those travel ricks but then immediately -- restrictions, but then immediately put back on, a bit of confusion as for the facts factories, china manufactures and produces a lot of goods that go around the world, so the factory floor for many, many industries, and according to one retail consultant telling us here at fox business that china's only running at 70% capacity, and that means component shortages for industries such as technology to garments and, yes, they're in the process of reopening, but they probably won't reopen until march, won't get back to 100% capacity until then.

even if production is shifted outside of china to cambodia and vietnam and other low cost centers, you still have parts shortages. for instance, they still rely on raw materials coming from china. and as you see, 40% of all imported apparel here to the u.s. comes from the chinese factory floor according to consultants. they say that 70 percent of the shoes that are bought in america are made in china. that has a knock-on effect to the retailers, the wall martz, targets -- wall participants, targets and may city's. apple, as we know, still puts together more than 50% of their iphones in china, so this might be a different case, but apple's really feeling the pain today, down 4.25%. the chipmakers, a lot of those goods are made in china. in fact, some of the compiling process goes through china and even if china isn't the final end product and the final end market for a lot of these goods,

but according to analysis, neil, i guess s&p companies only say 6-7% of their sales rely on the chinese market. but china is such a vital component of the supply chain that it really upends everything else from point a to point b. back to you. neil: yeah. all right or, super, thank you very much. revisiting session lows here at the corner of wall and broad when it comes to the dow jones industrials, now 1,023 south side here. we should also point out that the vix, the volatility index, has hit its highest level in the better part of a year jumping a little bit more than 8 points. now, some interpret this, you know, upside down, that people are that concerned and that fearful -- which is a gauge of fear -- they can actually put a number on that, then it's already overblown and things will calm down. that's what happened last january, they hope it will happen in this particular month of february. but it's way too early to tell.

let's get the read from "the wall street journal" ed editorial page gillian melcher and david dietze. david, what do you think when you hear a number like that on the vix and the fear that is pretty much rampant and pretty much worldwide? what do you do? >> well, basically it's all about your time horizon. if you have a slightly longer term horizon than this afternoon, i think you use this as a buying opportunity. neil: what if it's tomorrow afternoon? >> no one nose really, but the well diversified investor has bonds, has precious metals, both of those are soaring today. isn't in the proper day to trim some of those all-time record high prices and buy some well managed companies with a very good long-term future. neil: so a lot of people looked at that and say some of these big names have gotten me to the party, and i don't want to get out of it. i've made a heavy profit on it, it's not as if i have to sell

it. >> this is, hopefully, a temporary thing. but i think just to say it's temporary doesn't fully capture the picture of it. it is going to have an economic impact. and i think we're seeing right now that our global economy is really interlinked. when something like this happens in china, starts happening in italy and europe, it's going to have a trick until-down effect to other world economies. and i do think that's a concern. neil: one analyst today, i hope i got this right, i never believe the chinese when they tell me something, but i believe the italians. so when the italians said we went from virtually no one dealing with this to now shutting down ten cities and quarantining 50,000 citizens because of this, that gets me worried. >> no question. this has ratcheted up this whole issue and so forth. but, i mean, i think i would keep two things in mind. one, we have seen pandemics before whether it's smallpox or diphtheria, 70,000 people have already been killed from the flu

just this year, so it's not going to go on forever. and the second thing is a purchase canceled today is not necessarily a purchase never made later on. if someone doesn't take a vacation -- neil: it's like the hurricane effect. you hear hurricane damage and that kind of stuff, it's not as if it goes away, it's just delayed. >> yeah. i mean, that's a complete possibility. but getting back to your point on thattist -- statistics, this is concerning because we've seen that the chinese government hasn't been transparent with us, and this is something that's starting to frustrate a lot of people in mainland china. but essentially from the get go this was given the chernobyl treatment, downplaid. and i've got to call out the world health organization for praising china on transparency, for excluding taiwan from participating in this. i think at the time we've got something that's not only a public health risk, but a risk to the global economy, for china to be playing politics as it

has, it's just not helpful. neil: you know what worries me, when people keep telling me to calm down, i can't calm down. [laughter] i was perfectly calm before they told me just stay calm! and then i said, well, why do you keep telling me to stay calm? >> it always helps to have an experienced coach by your side telling you to calm down. neil: right. >> seriously, i do think we should not overreact. this is a human tragedy, but let's not tell people not to go to chinatown for dinner -- neil: what if gillian is right and what if the chinese misrepresentedded? we know they've done that with economic number it is, in the past with promises on trade, now we have reason to believe maybe they haven't been straight up on this, that maybe we've got a false sense of security. i'm not trying to be panic monger, you know -- >> there's no question that the black swan could be a black elephant. stay diversified. certainly, historically you should not be selling on the

sound of the caw but, rather, buying when everyone says everything is fine -- neil: well, you're a seasoned pro at this, one of the best i know. i always wonder when it comes to people of your generation, very savvy, but now only lately we're told that the taste ticks -- statistics, dipping their toes -- i'm not talking about you. [laughter] i wonder what they do as a result? do they say, my gosh, i held off as long as i could, i dive in and boom. >> millennials? neil: yeah. >> i think it's been really heartening watching the way the stock market has responded in the last year, two years, what a good economy we're finally being able to experience. that's a new experience for a lot of millennials. but, yeah, i would say don't sell your stock and buy your hand sanitizer. neil: wow. >> two other things to consider, one is the dollar cost average n. let's say you have a lump of cash, don't put it all in today. we're just talking about what's going to happen tomorrow amp, so put a third in today, a third a month from now, the final third

two months from now -- neil: by the way, you know the -- [inaudible] same amount when it's high, when it's low, it all averages occupant. >> you're sticking your toe in the water. if stocks go up, great, congratulations. if they go down, you can have more -- neil: more shares than you would have otherwise. >> that makes a lot of sense, i think. neil: i want to bring rebecca heinrich in this, in the middle of this -- we're not expecting you to be a market soothsayer here. the president signed a big deal with ending ya today, a $3 billion that some are saying could be a precursor of bigger deals to come with india. leaving that a aside, i got the sense -- just me, you're the expert, i read a prompter so i think i qualify -- [laughter] but i got the sense that india might be our next counter-china play, and that's what's going on here. what do you think? >> well, that's the plan for the trump administration. that's why president trump and the rest of his team, ivanka's been very involved in this, in

cultivating this better relationship with prime minister modi can. both modi and trump had wonderful things to say about one another, and this $3 billion defense bill, it kind of knocks out two birds with one stone because it's great for american business. these are, obviously, american defense companies that are going to benefit here. but india is very important to us strategically as we try to counter china. both militarily in the region and also economically. but india's still going to -- they still hold a lot of good cards in their hands, and they know that because of how much the united states needs china, and so they are playing tough. they're playing hardball when with it comes to trade. neil: i just wonder how hardball, you know? i'm wondering, too, we have a better, i think, constructive relationship with india as far as maybe the trust factor. i don't know if it's warranted torrent, than we do with china. we were just talking about whether we could believe what the chinese are telling us with regards to coronavirus.

we seem to get surprising developments every day. and i'm wondering if that's going to be a problem for china or jinping or the leadership because now even chinese citizens are saying, and particularly the 60 million plus still quarantined. >> yeah, it's a huge problem. i mean, this is -- communism lacks transparency s and so when you have something as bad as this, you know, this break and we're not sure how bad it's going to be, and we're obviously praying and hoping it's not going to be this global pandemic worse than we're seeing, we need the chinese government to share information about what they have, and they have not done so sufficiently to allay a lot of our concerns about the causes and where it's coming from and exactly the nature of it. and then you have that backlash from the chinese people who have been, you know, told that the chinese communist party is there to protect them and to do good for them, and these are not, you know, they're not cultivating trust into their government if the government's not going to tell them what's going on and

being transparent. again, the chinese communist party cares much more about their rep aation and guarding it than they do about the transa parent city and caring for their people, and you can see that it's having a negative effect. neil: both are suffering. gillian mentioned in this, how similar this sounds to knee-jerk reaction, the original statement the then-soviet union put out back in 1979 on chernobyl. and they were proven wrong, and they kind of downplayed it. and i'm just wondering whether you think that's going on here because that took a long time for the then-soviets come out of all that --? >> it does and -- neil: i'm wondering now what happens. >> you know, at some point you've just got to, the communist party needs to say, they just need to be forthcoming and say this is what we know, they need to let in american doctors, some other western doctors which the united states has pushed for and, again, transparency is what is going to allay concerns and going to allow the genius to be unleashed cooperatively to try to take care of this problem that the

united states and other countries recognize. as it spreads, it's obviously going to have an effect op on the market globally, on tourism and, obviously, you don't want it to come into your own country, so there's concerns about the well-being there. this isn't just on this particular issue of coronavirus. the chinese government has not been transparent about their intentions, their military program, we want to know about nuclear program, and they have lacked transparency. and you can't have a healthy partnership with a country that isn't going to be forthcoming, give you reciprocity and transparency. and so because that lack of trust is going to hurt china, i think, in the long run. neil: yeah. you don't get a second chance to make a first impression responding to a crisis, do you? rebecca, thank you very much. i appreciate it. >> thanks, neil. neil: session lows here, down 1,067 points. a lot of that money, you always wonder where it goes, has been flock into treasury notes and

bonds, interest rates have been tumbling, gold has been soaring. david, when you look at that -- david dietze and gillian melcher, by the way -- that might provide -- [inaudible] 200 points ago. but what do you make of that, that interest rates are tumbling, growing talk the federal reserve might have to do something? >> so two aspects of that. one is there is a sill is very lining because of the night to safety. interest rates are coming down. industries in our country, of course, home building, construction, so forth, that certainly helps that consumer taking home equity loans out -- neil and that was happening before. >> yeah, and it's going to cause more banks to lower their rates and so fort. the other thing is prices at the pump having been cheaper for years, and what americans have to pay to get to work, to travel, so important, that's helping too. and the other thing is the federal reserve. ultimately, i tell my investors let the federal reserve blink before you blink because, of course, all eyes are focused on

them now with the dollar soaring, our interest rates -- they're really under pressure to lower rates i i think as early as next month. neil: you know, or gillian, the flip is who needs the fed to do anything, right? market rates are coming down. >> yeah. we're undoubtedly in a good economy, and i think we're seeing the combination of the tax cuts, the trump deregulation, all of of the things,ing you know, america's energy renaissance, all of those things cushioning against international volatility. this could have been much worse if it had been under an obama economy. neil: let me throw this out to you guys, the bernie sanders effect? you've heard the health care effect, those issues are taking it on the chin. is his strengthening position in the polls, obviously, we know what he thinks of insurance companies, they're ripping us off, robbing us blind, and now that he looks like he is really amassing much more support than many figured, he could be the nominee -- that doesn't mean

he's the next president of the united states, but it's putting a pall over this industry. >> well, it may. more taxes and giving people everything free is -- and higher regulation perhaps is not helpful. but on the other hand, it is such a complicated stew there because does this mean is he actually going to get the nomination? does this actually increase trump's chances of winning because he's up against sander who may not -- neil: that's what i'm saying. that he looks so unlikely a victor against donald trump. history proves that wrong again and again, including donald trump's emergence, that the markets might celebrate a bernie sanders. >> i would argue that he's set the tone of the democratic debate. so since 2016 i i in that we've seen not just bernie sanders way out on the wing of the party, but the entire democratic party take several steps left. this is not, you know, it makes obama look like a moderate. and i think that's a real economic risk. bernie sanders is coming out on a plan with on -- with a plan on

childcare, $1.5 trillion, and i remember when a billion dollar plan was a big deal. i think we're starting to see the growth of government in a way that is a stark contrast to what we've had before. neil: let's look at that bernie sanders phenomenon. i want to bring the daily caller editorial director, not rational thinking people -- me -- about what's happening in the health care arena, whether that has anything to do with the emergence of bernie sanders as a real threat. i say threat, a force to contend with. maybe a likely nominee. and that is, that is looking a little bit more likely than it did pirate this weekend and -- prior to this weekend in the nevada caucuses. what do you think? >> he is the clear front-runner at this moment, and the clearest expectations for the nomination are either he walks away as a

nominee or we have a contested convention. the democratic party will have a deflated base on either side of that coin. when it comes to bernie and health care, you know, it is true that in the 2018 midterms democrats ran on the energy of health care concerns, definitely voters who who say they were voting for democrats did that on the basis of health care. but you have to remember that the gains that obamacare made in terms of actual insurance coverage was somewhere in the low are 80s to 90% of getting health care coverage. and now bernie's talking about that last gap from that 92% to 100%. and that's also the most expensive gap, and it's going to cost people a lot of money including getting them off their private insurance. you saw a lot of trouble with that in nevada, and right now i think it's really going to come down to for bernie can he, basically, sustain the energy he has and he figure out a way to convince moderate democrats

these socialist programs are somehow digestible. neil: well, he has expanded beyond his traditional base, right? and nevada is not the country of the whole. it's closer to the country demographically than, let's say, iowa and new hampshire. and he picked up support from groups, even joe biden's african-american, you know, lock is now in question going into south carolina. if he were to somehow win in south carolina, then what? >> then that would, i think, set the stage for a glide path to the nomination. i mean, south carolina is, as joe biden said many times, his firewall. but honestly, once you get past south carolina, it looks to me like bernie's headed for near a majority or, if not then either of those two she their coowes, it's hard to imagine any candidate getting within spitting denies of having -- distance of seriously offering a threat to bernie sanders. neil: still early, we shall see.

i want to thank you very much. in the meantime, we are keeping an eye on what's happening with oil, gas prices, david was just telling us how that could be very favorable for consumers because the price of gas, heating oil is collapsing right now, and that on top of the lower interest rate environment, it's a good one for consumers. let's get the read from our own phil flynn, jeff flock there at the cme with the very latest. gentlemen? >> we're about 15 cents from the lows of the session in oil, neil. we're at 50.63 last trade. here's a man, phil flynn, who this morning to your investor clients, the headline on your morning report was time to panic -- >> time to panic, that's right, because the markets -- >> did you know that the market was going to be down 1,000 pointses? >> i knew there was that possibility, i really did last night. when we started to see the headlines about this coronavirus spreading across the country, the mood of the market coming in, we knew it was going to be an ugly day. >> we've lost how many people to

coronavirus, 23, 2400 -- >> something like that, right. >> i am told by reasonable, reliable sources flu kills 300, 400,000 people a year. >> it does. >> why are we so freaked? >> mainly because of the fear we don't know where this is going to end and whether they can contain it. every time we hear it's not going to be a pandemic, we hear different cities getting shut down. that means demand destruction, we don't shut down factories when we catch the flu. >> you're an oil bulletinically -- >> i am. >> and you long-term think it's going to come back, but this demand destruction is very real. >> it is very real. but, you know, i think we've priced in a lot of it. if you look at from the peak of this, we're probably down, or you know, from the peak almost 25% from the high. listen, every demand destruction event like this in history has been a buying opportunity. you know, the question finish. >> are you buying today? >> we're starting to buy right now. we're recommending right here on the lower bullet you ran on the s&p is an area to at least step

in and start to buy. so even though i don't know if we're going to bounce back today, i think there's a high probability that the market's going to close higher tomorrow. >> you sound like you have the flu finish. >> it isn't coronavirus. i just spent a little time in china, nothing big. >> get away from me. okay, or neil. neil: was he referring to, in other words, buying the s&p 500 futures contract, right? he wasn't talking about oil, or did i mishear that. >> no, he was talking about buying oil at 50 and a half. >> yeah, i think $50 is a good area to buy. >> you're buying now? >> well, i'd be very cautious. it's not for everybody from. a technical viewpoint, you should be buying now. and i think this downward with move in oil is probably going to get opec to move and juice production. >> there you go, neil. neil: i just want to lock up on tape in case he's wrong, i can rereplay that. thank you, jeff, for helping that process along. no, you guys are great together. in the meantime, we have the dow

down about 1,042 points, it is in negative territory on the year, the s&p 500 in negativer territory on the year. the nasdaq holding on on to positive gains. how can do you expect that to last? >> well, short-term forecasts are fraught with hazards, but certainly we've got a lot going for us. one is with these record low interest rates, 30 years not below 2%, that's below the rate of inflation -- neil: 30-year mortgage, some aggressively pushing 3-3.25%, can you believe that? >> that's a tailwind market -- neil: if people take advantage of it. >> but a lot -- neil: [inaudible] >> there's a lot of refinancing, so people are taking the money out to do projects that they wanted to do -- neil: you know, refinancing, i keep jumping in, be -- but your brilliant point is, it's

amazing. >> the other thing, of course, the big bogey over the decades has been inflation, inflation's disa appearing and, of course, we're not going to see it for a long time as the value of the dollar continues -- that makes whatever we do import so much cheaper and so forth. that's a big positive. you've got record low unemployment, you've got corporate earnings coming in better than expected, so there are a lot of reasons to be positive. neil: we've had low interest rate periods before, but people don't pounce on them right away. the meltdown took a while with interest rates. but they cooled their jets a while. they didn't jump into it. >> i want to just come back to this point about the strength of the economy, because i do think this is really crucial. i mean, we are looking at this narrative of tax the rich, that the system is rigged and yet're seeing wage growth, we're seeing really tight labor market, historic up employment. all of these -- unemployment. all of these things happening at

the same time as the conversation about socialism, i think, is intriguing. neil: i love the way you say that, intrigue. stranger things have happened in the past. we are also looking at itly right now. what made this a unique day and why things worsened, we expect bad or problematic news out of china, we expect asia and problems with south korea e and several incidents in north korea, we are not prepared when out of the blue italy comes forward to say we've got a problem, not only a number of deaths, but so much so that we are shutting down, essentially quarantining ten of our most prominent cities. that's better than 50,000 people. no, it is not 60 million as in china, but for italy it is unprecedented. for europe, it is darn near unpossess dented. what's going on there? after this. ♪ ♪

♪ ♪ ♪ ♪ ♪

♪ neil: all right, the number of coronavirus cases soaring in italy, and that was a game-changer for pretty much the investment world. amy kellogg now in milan with the latest. amy? >> reporter: yeah, neil, europe was pretty much feeling safe from all of this until just a few days ago when the cases here in italy spiked. i am standing in front of a shuttered scala theater. this is milan's premier cultural attraction and this very sudden, unexpected outbreak, neil, has hit italy's powerhouse very

hard. a quarter of the country's gdp is generated up north in these areas that have been affected. 50,000 people are in a lockdown in areas around milan and venice. there's been a run on stores, and i have to say it is very strange to see normally program in rouse italians who rarely bother to put on bicycle helmets walking around in masks. now, the effects on the economy really are yet to be seen. the carnival in venice, a very important event in the winter calendar, has been closed down. venato, again, one of the outbreak regionses. schools have been closed here in milan and other communities, some churches and cathedrals closed. people are being asked to work from home in many cases, bars and pubs are closed here in milan and, again, many cities from 6 p.m. fashion week -- fashion, i should say, is is among the industries that's really taking a hit here as well. milan saying fashion week just

wrapped up. chinese are the biggest or among the biggest purchasers of luxury brands. they've had to stay away. giorgio armani did his show to an empty room streaming it, fashion markets are down. now, the big story here tonight, neil, is this search for patient zero. the first two cases of coronavirus in italy early on were elderly chinese tourists, and it was easy to track their contacts because they'd been in a group. but just recently a 38-year-old italian man, very healthy, active, involved in the community, came town with the flu, and no one suspected it was coronavirus. he went to the hospital twice, was treated, infected at least a doctor and it's understood a lot of other people. but it is not known for sure who was the person who gave this man coronavirus. so until he or she is track thed down, there's still quite a lot of panic. but i is have to say there is also a sense among many here that the italians are doing their best and doing a good job getting this under control.

protocols have been put in place, and a lot of people are are saying they do have faith in the italian medical system, neil. neil: all right, thank you,. amy:my, very much. let's get the reed -- the read on what's happening with the dow down about 970 points. the point record to break -- it's only happened three times in market history for the dow to fall 1,000 points or many, this could be one of those days, the worst point decline we saw was on february 8, 2018. no, i'm sorry, february 5th, 2018, when we fell 1,1 is -- 1 is,175 points. was that with the trade issue back then? dating myself. >> i think that's right. one thing i would caution everyone is points don't mean what they used to. with the dow over 28,000, it's not is tame as going down 10,000. always look at percentages, please. neil: and those would be small by comparison. anyway, want to bring in gianno

caldwell into this. we're talking about the environment all of this is going in, with a strong economy, really so strong u.s. markets today notwithstanding and if that this has always been the wind at the president's back, the wind at republican' back, but it does make you wonder if it sustains itself, whether that changes. what do you think? >> well, so here's the thing, i know that there's been people who have used the potential of their -- there being an economic crisis, meltdown because of the coronavirus, comparing it to 2008 when barack obama -- who actually got a leg up during the time close to the election because people thought he was the bright, smart guy who could fix the economy. and now we have policies that are in place which which will prevent from something like a housing meltdown. a lot of people keep their wealth in their housing. this is, in a way, the same thing. one, we have the best health care system in the world. two, we have the cdc, which has been doing a terrific job.

they're quarantining anyone who could potentially have it. and the second thing is -- well, the third thing, rather, for all those folks on the left or the celebrities like bill maher who said i hope that there'll be an economic crash and they're hoping and praying for it and probably bernie sanders themselves, there's been proprojection we would see any level of mass chaos like we did in 2008 if there were to be any impact whatsoever, it would be tempod in nature because we've got multiple sectors that are running very strong. neil: i am noticing networks paying up due attention to the markets today. i'm not minimizing it, but when you talk to young folks, i was visiting with gillian melcher with "the wall street journal," not just young people, but all types who feldt compelled to get into this market, then manager like this happens, what do they say? do they get nervous? what are you hearing about the

politics aside, the effect on the markets? >> i think people see a fluctuation in a market, and typically people refer to policies and what's going on. the coronavirus, i think, hasn't really hit home as it might have in se, like, italy, south korea, china. people are really seeing it outside of looking at international television and seeing what people are seeing and, of course, being restricted from travel thing in particular places. i'm not hearing anyone panicking per se. i think a lot of people believe that it's temporal in nature, people believe there's going to be a solution to this, as i do believe as well. so i'm not really seeing that level of reaction just yet. but if we see a case really appear here and we see some spreading, obviously, i think be a whole rot more panic and people will be very, very concerned. neil: i spoke the other day with south carolina republican senator tim scott who was

predicting that the president would get much more of the african-american vote in the past, from i think 8% where he was in 2016 which was higher than most republican nominees -- >> yeah. mitt romney and john mccain? neil: right. as much as 12-15%. you had been arguing in in your book, take it for granted, but he was saying the president's already succeeded in doing that. what to you make of that? >> so here's my belief and my takeaway. yes, the president had 8% from african-american generally, 1% from african-american men, and i think -- 13% from african-american men, and i think part of the reason he won is because he got that share of the vote. he was talking about what he was going to do. what do you have to lose, i'm going to create an economy that's going to work for all people, i'm going to help your community. schools are failing, i'm going to help, i'm going to do x, y and z. just the rhetoric alone moved

the needle. now we have policies in place to demonstrate the rhetoric was real. it wasn't just what you see with democrats, often times they make commitments but nothing ever changes in those communities like the one i grew up in on the south side of chicago. we got the first step act, the criminal justice reform, you got opportunity zones by way of senator tim scott, permanent funding for historically black colleges and universities, and the let's goes on and on. the african-american unemployment rate the best it's ever been. if you look at wages compared to other dem graphics finish demographics, for the first time in history as of last year, they're growing fast therren than other major demographics. this is something we've never, ever seen before, and this is why i wrote the book, taken for granted, because i know that african-americans and not just african-americans, but those in appalachia and working class americans whether they be white or not have been taken for granted by the democratic party. and now you've got a president who is focused on these

marginalized communities whether they be black or not, and he's actually a making the lives of those individuals better. and that means something to a great deal of people. neil: you know it means more to me that you're such a big deal now that going to the reagan library, reagan foundation, to talk about your book, to talk about the implications of all of this. i knew you when, my friend -- [laughter] >> and i'm so thankful. people don't know, neil, what you mean to me personally as a mentor and a big brother and someone who i believe is one of the most fair journalists on our network whether it be fbn, fox news channel or -- neil: no, no, no, i didn't hunt for that, although i'm glad -- >> no, i want to say i'm honored, i am, i'm honored and i'm so thankful that the reagan library believed in me, and i have the book signing february 27th which is this thursday. program starts at 6:00, call the library and tell them you want to be there or just show up. [laughter] i'm excited about that, but i definitely wanted to say i'm so

appreciative to you for being who you are and investing in my life as you have. neil: well, it's easy to invest, it's an outstanding book. and now everyone is saying what he wrote about, you know, months ago. it's all turning into reality. i love him to death, but i envy that. and when i envy someone, it's not good. [laughter] gianno, thank you very much. have fun there. it's a beautiful place, beautiful place. in the meantime, we're going to have the hatest on the coronavirus impact and, you know, in the middle of this we always talk about negative, negative, negative, throw out everything, there are some serious deals being made here. in fact, maybe stuff gets cheaper, people say, you know what? maybe it's cheap enough to buy. it's happening, after this. ♪ ♪

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♪ neil: all right. down about 9 77 points on the

dow, and other business stories are making headlines today. deals are being done. kristina partsinevelos following that closely at the new york stock exchange. >> reporter: yes. we've within talking about this coronavirus but, of course, there's other news out there. let's talk about some of these major stocks taking some hits at the moment, tech sector because of supply chain links to china. you're seeing apple, microsoft, netflix all trending lower across the board, some 5% lower for facebook. gilead, there's another story. gilead science is an american company, they did receive commentary from the who today, the world health organization, that they're working on a trial drug for the coronavirus, because of of that mention, you're seeing the share of that stock up today. it's a bill, longer word that starts with an r that i can't pronounce. but other big stories, berkshire hathaway over the past weekend, they posted a profit of or $29.2 billion in their latest quarter and, of course, they're holding tons of cash on the sidelines,

almost at record levelings. the reason why the stock is so much better compared to last year at this time is because they had to write off kraft heinz, so that was unexpected, a significant shareholder, but definitely a little bit higher. and intuit, a financial software company, they turbotax, there's talk they're expected to buy credit karma which is a private company for roughly $7 billion. that would be their largest acquisition in 37 years, in their entire history, that's the reason why you're seeing the share price down almost 4%. the competition the, neil, we talk about plant-based patties, another player is getting into the field, and this would be cargill. they're privately held, they plan to launch their own plant-based patties, beyond meat, tyson foods in the mix with their own little hybrid, and then last but not least another story on our network that had major movement on

friday, and that would be modell's, mitch modell, the ceo of the sporting goods company in new york did announce they were going to be closing 24 stores on friday. he went on our network, got a lot of positive reaction from investors and land lords, and he announced that he can reopen five of those stores, and he literally told me in an e-mail just a few hours ago that we saved five stores as a result of maria's interview on friday. to bring it full circle, traders are mentioning bernie sanders and nevada and what that could potentially mean to, so there's a little bit of hesitation about the future of these markets in the next year or to so. that's just adding to the coronavirus selloff that we've been talking about all day. neil: that's very interesting, and i'm sure it is out there certainly for the health care providers. meanwhile, cruise operators are taking it on the chin just as an example here, carnival down about 9.5%, royal caribbean with, 8.3%. some of these big players in the

arena, not surprisingly, aren't doing too well. we'll have more after this. ♪ ♪ awesome internet.

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neil: all right. as expected, we are hearing now that the white house is going to request at least $1 billion in a supplement alp spending deal -- supplemental spending deal to try to get ahead of this coronavirus here. we've got republican strategist john thomas joining our panel. very good to have you, my friend. >> great to be here. neil: obviously, the administration, we're told the president is taking phone calls once, twice a day on this no matter where he is, including india. how are they responding? >> well, i think decent.

he's been speaking to the issue, and that's really all he can be doing to this point. now he's deploying capital to tackle this issue. look, president trump's approvals, everything is trending well for him for re-election. with the exception of a crisis that can take down this presidency. so the key here is that he shows the american people that he's on it, that he's not asleep at the switch. god forbid this grow out of control in america. but even if it does grow out of control, that -- even if the president is speaking to it -- could drag him down, and he's keenly aware of that. neil: that he was taking advantage and maybe assuming that the good economy -- >> right. neil: -- was going to save him and he could have fritteredded it away. >> yeah. this president, i guarantee you, is not taking the anything for granted. he's used to being in a constant state of war on the political trail. [laughter] neil: so let me get your take on it, david, because you could look at this crisis as being

short-lived and then it goes away, or it could be like i thought the financial meltdown was to john mccain. those polls saying he and senator obama at the tile, then-senator obama were even until the crisis hit, and then he was down 6-8 points. >> there's no question this has the potential to really do damage. i mean, whether it's like a snowstorm in new york city that brought down john lindsay to katrina situation -- neil: you're dating yourself. >> i know. you can't understate it. i think -- how much do you ask for, if you ask few -- for a whole lot, you've got to identify what you're using it for. the art of the deal guy, mr. trump, he's going to find out what he can extract from the dems. neil: i just would like to know what would the money go to. >> yeah. and i think it's also important to say where is the money that we've already devoted to public

health scares like this going. and i will point out, you know -- neil: such a jaded -- [laughter] >> cynical. when you hook at the world health organization and how it's panderedded to china, said that china's being transparent when it's not, the united states is the biggest contributor to the world health organization. i don't think we should be allowing china to bully taiwan, to intervene and pressure the world health organization in a politicized way at our expense. neil: you know, this gets involved, they come -- solved, they come up with a vaccine, what are the contingency plans? [laughter] >> well, politically speaking, i mean, look, it's tough. you could see this thing escalate very quickly into quarantine facilities that are almost reminiscent9 of putting kids in cages that sunk president trump's approvals going into the midterm cycle. this thing could escalate very quickly, and it's unforeseen circumstances like in that truly

put president trump's re-election in jeopardy. because if you look more broadly how trump's doing, he's only at 50% approve. his job approval rating on the economy is 55%. every indicator is fairly locked in for trump to get reelected unless there's a black swan moment like this. >> you know, i would argue that that's decently baked into the cake at this point as well. neil: okay. we'll watch it very closely. thank you very much. meanwhile, i told you about the dow could go in and out of getting the biggest point loss ever, but again, as david points out, percentage terms not even close. and then there's nike. it's down more than 4%. it's looking at its worst day since march of 2019. stay with us. ♪ ♪ i, get your credit cards right by consolidating your credit card debt into one monthly payment. and get your interest rate right so you can save big. get a no-fee personal loan

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neil: all right. the dow down about 950 points. a lot of attention being paid to individual issues like nike in and out of two year lows.

the type of drop that gets a lot of people's attention. the question how long does this last with interest rates going in and out of record lows. mortgage rates following suit. oil and gas prices coming down. there seems to be a floor here. we shall see. here is charles payne. hey, buddy. charles: good afternoon, i'm charles payne, this is "making money." breaking at this moment we're in selloff mode here. something might be different here. many are asking if the now is the time to start buying this market dip? how is the white house responding to all of this chaos? peter navarro is here in a few moments. bernie sanders has the democratic establishment seeing more red than these markets. why they need to look at the people rather than the pundits. and is bernie's momentum enough to stop president trump? look at this. this raucous rally in india. that is hero's welcome. t