airline's ceos as "power lunch" starts right now welcome to "power lunch. stocks are lower the dow off the lows of the day. at the low, it was down more than 200 points. the nasdaq just marginally positive utilities bucking the broader trend. the sector hitting an all time high one of the best performing sectors this year m second only to technology. kind of curious pairing. for more on what's move iing th markets here today, let's get over to bob at the new york stock exchange hi, bob. >> hello, courtney we're near the highs for the day, though still doup here's the key point right here, we had a statement, w.h.o., world health organization, not declaring a public international health emergency. that was good for about eight points for the s&p overall, if you look at the broad picture, still a good month. we're up about 2% and been the last few days over the sars, excuse me, the coronavirus concerns that have marked the markets to the downside, but a a lot of damage being done below the markets if you look at the casino stocks like las vegas sands, alibaba, young china. cafe pacific the metal stocks are getting clobbered. freeport down 10%. if you look at the fxi, mostly a hong kong based ed e etf, been trending downward the last several days, but this other real underhighing damage here in the united states, energy is just a mess and i want to show you. broader trend here for the last month or so, cabot, marathon, most of the damage has been in the last four days or so. that's pretty serious. did have a modest energy rally want to point out what's going on with the industrials. i don't like what i'm seeing here either. here's caterpillar we're down almost 5% for the month and finally, i don't like what i'm seeing in the banks either start of the week, the ten-year was 184. now we're at 1.7%. take a look at some of the banks here in the last few days. socme of this is the post earnings situation comerica down 8% so far this month. down 8%. u.s. bank corp. down 8%. regions down 8%. jpmorgan down almost 3% for the month. i know everybody's focused on technology basically that's holding up, but guy, real damage in banks, met dahls, real e damage in some of the transports and also damage in energy as well. got to keep an eye on this >> thank you very much the u.s. stepping up its concern about the coronavirus. the state department issuing a new warning b about travel to china. 16 people have been identified as having come into contact with the one confirmed coronavirus patient in the united states and an ill passenger arrive iint lax was hospitalized although that's not a confirmed case of coronavirus. now the world health organization holing a call and meg joins us with more on this story. >> that's right so this w.h.o. call was after the conclusion of the second day on whether declare a public health emergency. the word is now is not time although the committee appeared to be split down the middle. it would be just the sixth time since 2005 following the outbreaks of ebola and zika. saying they don't take this extremely seriously, but they say right now, the limited international spread is wider making this decision and they could come back and potentially revisit it they did get a lot of questions about how china is responding to this handgving put several cities essentially on travel lockdowns. didn't go so far as to say we recommend that, but in fact said in general, they're not recommending any restrictions on travel and trade which you often hear from them out of fear it could cause some countries to underreport cases or cause people in countries not to report to authority, but you can see some of those cities that are dealing with this now and china, they did encourage china to keep being transparent about reporting information about this virus. we did get more information. of the confirmed cases, 25% are considered severe. the origin is unknown, although it's suspected to be from an animal and lastly, they are still trying to figure out the extent of human to human transmission this as case counts have now topped 650. >> are all of the fatalities this china. >> they are and 17 were in epicenter there. >> the wuhan area? >> that's right. the 18th death is in a different city so you know not as many, not everybody concentrated there. most of the people who died were eililderly or had other illness. >> i was just going to ask was it someone with preexisting conditions that might have been a little bit more susceptible to getting something sick on top of what they were already dealing with >> meg, stick around they've quarantine d seven citis with a total population f 23 million. that would be like locking down new york, l.a., chicago, houston, philadelphia and then some in the u.s., so what can we expect as we tackle this deadly virus? joining us now is coronavirus expert, founding director of emerging infectious diseases at walter reed army institute of research doctor, welcome simply put, what is a coronavirus? is it a form of pneumonia or what. >> coronaviruses are a family of viruses to which this new virus from china belongs to and is related to other viruses that people may have heard about. sars back in 2002 and 2003 and in the past decade, mers there are seven coronaviruses overall that cause infection in humans that we know about and some of them cause more severe cases of respiratory disease and this one in particular mimics and mirrors what we've seen with sars and causing severe pneumonia in certain individuals. >> is quarantining or walling off from travel city, whole cities, an effective way to contain the virus? >> i think it's important to understand that quarantine is just one tool that we have in a whole tool box of public health measures to be able the to control outbreaks. quarantine can be effective but can't be effective on its own. especially when a disease is transmitted between humans and has already spread we need to also include case finding, contact tracing, good screening as well as education of the public and our primary health care providers. >> doctor, it's meg. i don't know how much you were able to listen to the emergency committee web cast just now from the w.h.o., but the committee was asked several times about the actions in china and they seemed reluctant to really address whether those actions were good or bad but there is a lot of speculation here many the united states about whether china is being extremely up front about the case counts, everything else that's going on. dr. got looeb said it's great they provided the genetic sequence so quickly, but they haven't provided samples of the virus. what's your expectation on how much that information can be trusted? >> i think if you compare to the outbreaks in the past and particularly sars, which people may not know was actually the reason why this mechanism of public health emergency international concern was created by the w.h.o the information that has been coming out from public health authorities from the epicenter of the outbreak and beyond has been really transparent and been very responsive. with respect to the data that's been coming out, there's been a lot of open sharing of information between public health professionals and scientists and regarding samples, you know, that requires the consent of the individuals who are infected so it may take longer for some of those samples to be shared among the scientific community >> would you expect this virus to spread to the united states and elsewhere in the west and if so, how broadly and how quickly and then following on that, if it does spread to the united states or elsewhere in the west, canada or europe, would you expect the mortality rates to track roughly what they've been in china >> i think the key point here is that the it's so early this virus was only identified and isolated three weeks ago, which is actually a good sign that we've been moving so quickly. we have the technologies that we didn't have back when sars caused an epidemic, so it's very hard to know what the ultimate mortality is going to be the mortality right now is about 5% compared to what was seen for sars, about 10% then mers, the middle east respiratory send roam, whiches about 35% mortality. as we see more cases and i expect we will, not just in china, but in other cases as well, those estimates of those mortality rates will be adjusted as far as the transmission in the u.s., well we've, we've seen, we've seen a case in the u.s. confirmed case the good thing is that we have a very coordinated and very rapid interagency response among the u.s. government of which my agency is part of. and there's been a very quick and aggressive approach towards implementing countermeasures and public health tracking mechanisms >> just quickly, doctor, do you agree with the w.h.o. that this is not yet an international health emergency at this point >> i think it's a prudent and wise for them to make sure they have all the data they need. there's a number of criteria that need to be met before they can make that declaration. >> thank you very much we appreciate it >> thank you very much coming up, retirement advice for babey boomers as one says a crisis is looming. plus, a loft the blame being based on coronavirus fear, but do the markets have something else to be worried about next week is a huge week for earnings and the ceo of goldman sachs has something for investors, unrelateded to the virus. "power lunch" is coming right back you're pete nocchio? oh, the pic? that was actually a professional headshot. i'm sure that's it, yeah. i, uh, i think i've lost a few pounds recently too. i'm actually doing a juice cleanse. wait! you don't... (glass breaking) (gasp) ah! oh...! with geico, the savings keep on going. just like this sequel. 15 minutes could save you 15% or more on car insurance. this round's on me.eat. hey, can you spot me? come on in. find your place today, with silversneakers. included in most medicare advantage plans. enroll today by calling the number on your screen or visit getsilversneakers.com welcome back w we're at the highs of the session. the dow had fallen as much as 200 points at the session low. earning season kicking into high gear the nasdaq is just marginally positive and goldman sachs ceo says he doesn't think the future will be brirgt >> my guess is this year, we'll have less earnings growth in the u.s. which could weigh on investors and we had a strong year on the market last year, so we have to watch and see >> let aes wring 's bring in -- gentlemen, for being here. i'm going to start with you, chad it's been an interesting discussion of where the market will go and feels like a lot of trepidation from a lot of people things have been b good for too long it's got to end soon what do you make of what mr. solomon said about the earnings season >> 2019 was a year where you had interest rates go down roughly 1% and that was one of the major drives for equity returns. global growth for 2020 we believe though will be somewhat muted at about 3%, a little lower than expectations from the imf. that earnings expectation that he's speaking of, we think will have to come down considerably earnings expectations were roughly 9 or 10% with revenue growth at 5 to 6%. for 2020, we think we're going to have an upward market, but there's going to be a hot more volatility our recommendation is that you buy quality rising dividend companies and couple that with a latter bond portfolio about one to ten years out >> and you think that growth will fall from current estimates because growth won't be as strong as some projections >> in the united states though, we're not terribly bearish in the united states, about 2.5% the it's the em's side we think will be more muted as well as dioped of the european side, which we think is going to be like 2019. >> you kind of teased us can you give us the names you would recommend? >> rising dividends, hormel as well as pepsi. customer diskrer nair, walmart and disney as well as proctor and gamble bable if you have a three to five year time horizon, those numbers that came out today for fine. >> i listened to a lot of you guy like chad come on and i found myself confused because i hear mr. solomon say we exgrowth in earnings to slow this year. i listened to a lot of guys say the opposite that maybe last year was a trough in corporate earnings and that the comps this quarter and going forward are going to be better am i not hear iing it right >> well, i agree with your take on that, tyler i think the same obviously 2018 earnings were blockbuster. primarily because of the windfall from the corporate tax cut so same store sales, the comps for 2019 over 2018 were difficult to match let alone exceed with any robustness now for 2020, fact set has estimates up 7.9% on a year over year basis i don't think that's at all unreasonable and what i expect to see which is global improvement, a reacceleration, a rebound if you will, global activity led by emerging markets and some highly geared economic economies like china and europe to follow. obviously the coronavirus may be throwing a monkey wrench in this, so we have to stay closely tuned to what's happening and how this develop but our base case remains that we see a supportive backdrop and equity should follow. >> sounds like you're not that far from from what chad is predicting i heard him say it may be a 9% earnings growth. you cited 7.9% you said it needs to come down from 9 so we're looking at a growth year as opposed to as i recall 2019, there were some quarters where it was pretty flat >> the real issue is that you have a forward looking multiple of roughly about 18 to 19 times. that said, if you inverse that, it's the earnings, 5 a.3%. our long-term forecast ed retur because we do long-term returns, it's roughly 5% from a historical perspective, that's very low so hence to reason why you're hearing ining words of caution that sound clip. that's why we're just recommending to investors these momentum stocks that have been so fashionable, b start peeling back doesn't mean you need sell them, but look more towards value companies as opposed to growth companies in 2020. >> mark, i want you to pick up on chad's point before we go because as we said the two leading groups have been utilities and technology do you nelittle of both >> i think there's an element of playing a barbell. a little of both we like industrials because of the backdrop i described and i think will favor those globally geared companies here in the united states. in addition to that, i expect a weakened dollar to help support that profile for industrials, but i'd also like health care, kind of defensive growth reasonable valuations. a decent growth for it and i like venturing overseas into emerging markets and once again, valuation is attractive and i think they get a bump because of the boost in global economic growth >> thank you for being with us today. >> up next, shares of general electric, get this, rising, on an upgrade today up 30% in three months is the long awaited turn around upon us? plus, airlines reacting to the boeing 747 max shut cowendown m we'll hear from the ceos of southwest and american the fallout those companies are feeling, next on "power lunch. n, n, it feels like i'm just wasting time. wasted time is wasted opportunity. >>exactly. that's why td ameritrade designed a first-of-its-kind, personalized education center. see, you just >>oh, this is easy. yeah, and that's >>oh, just what i need. courses on options trading, webcasts, tutorials. yeah. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. >>so it's like my streaming service. well exactly. well except now, you're binge learning. >>oh, i like that. thank you, i just came up with that. >>you're funny. learn fast with the td ameritrade education center. call 866-296-7451 or visit tdameritrade.com/learn. get started today, and for a limited time, get up to $800 when you open and fund an account. that's 866-296-7451, or tdameritrade.com/learn. ♪ you met on anwhy?. delete it. he's the one. gesundheit. 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>> well, ge is the ultimate show me story we're beyond hope. hope is when larry took over and now we're in can they execute and need to do it over a series of quarters. if you're getting on the ge bus at this point, you're doing it for the long-term. not for a quarterly move and i think we need to see r more time for this to play out to be convinced. >> yeah, todd, it's trade iing around $12 a share though still well below the all time highs that hit back in 2000 of 58.16 >> i agree, but disagree with my colleague. i think it's potentially short-term play. just to give you the long-term perspective, we have not seen below the $5 region. 7 of 5 is the all time low we bounced off this is a long-term chart. down to the daily herement we've seen a nice bid from the morgan stanley note i actually add it to my position here right now, they have an upside target of about 14 here. i think that is well within reason morgan put out a $9 fundamental kind of floor in the stock right here actually think you don't need to give it much below 11. they have a target of about 14 as ge streamlines their cost i like it. i just added it 20 minutes ago $11 stock on this for me my own portfolio, just to trade. >> john, what do you think the concerns about boing and delay of 737 max returning to service. that has pressured some of its suppliers like ge which manufactures the leap engine, but are those concerns overblown as morgan stanley said >> i think those are fair risks and let's not forget we are in what has been a global industrial recession so u.s. consumer has been holding the global economy up and there's hope because a phase one deal with china was struck that's going help the industrial industry out we need to see that play out in the numbers. there's so many moving parts with g i need more swinsing. >> thaupg for joining us and thank you for watching trading nation our website and follow us on twitter. back to you. coming up on "power lunch", airlines feeling the impact from the 737 max grounding. southwest saw its profiting cdrp 21%. plus, bernie sanders is racing up the poll, nearly doubling his support in new hampshire those details next and press iing the pause buttono service animals. a new law could prevent fliers from bringing pepets, horses and peacocks, on planes. all this when "power lunch" returns. hey, saved you a seat. this round's on me. hey, can you spot me? come on in. find your place today, with silversneakers. included in most medicare advantage plans. enroll today by calling the number on your screen or visit getsilversneakers.com welcome back i'm sue herera here's your cnbc news update at this hour. surgeon general's report on smoking, first released in some 30 years, stating the majority of current cigarette smokers want to quick. while smoking among adults is at an all time low, none the less, 34 million americans still light up >> we know a lot about the benefits of keeping people from starting to smoke. preventing initiation. but this report highlights the quitting smoking is one of the most important things that people can do to improve their health and it doesn't matter how old you are or how long you smoked right is the right time to try to quit. >> a massachusetts woman convicted in a high profile texting suicide case was given an early release from jail this morning. michelle carter was convict ed o manslaughter when she urged her boyfriend to kill himself, texting him quote, just do it. and the bulletin of an atomic scientist unveiling the doomsday clock in washington. for the first time, the hands were within two minutes of midnight and they cite the threat of nuclear war and climate change as the primary threats. on that note >> on that cheery note >> that's the news update, guys. >> thanks, sue well the markets right now, stocks at least turning around midday after the world health organization said the coronavirus is not yet an international crisis the dow off the low, just about 21 points right now, still in the red. the nasdaq and s&p 500 though both turning marginally positive time for our power movers. the stock is rebound uing. netflix, yes netflix is rebound and on pace for its best day in a year the company will benefit from come cast potential subscriber losses slm corp. having its best day since the financial crisis that's a long time ago the company beating on earnings saying it will buy back stock. this it is up 27 today shares of karuna as a london company sells some stake >> the oil market is closing for the day. let's go to eric at the cnbc commodity desk >> oil selling lower for a third straight session both of them are down between 4 and 5% on the week as concern grow over the coronavirus and its potential impact on the near term demand for jet fuel and diesel fuel and broader economic growth jpmorgan said there could be a price shock of up to $5 a barrel if it develops into a sars style epidemic like we had in 2002 it was by decline of u.s. stockpile, although gasoline inventories rose to their highest level on record. back to you. >> thank you very much two major airlines reporting their profits today. american beat expectations while results from southwest were mixed mix ed but it was boeing 737 max that remained an issue as the grounding costs continue to add up hi, phil >> hey, tyler. another earnings day where both they had to talk about the impact of nothing having this 737 max. it's clear when you listen to the ceos, both are very frustrated >> it is more concerning to me though is the fact that we weren't able to grow we're losing share, have we maintained our normal pace, we would have earned another 6 or 7 million customers in 2019 and so yeah, we don't want this to go on indefinitely. it won't we'll get the max back >> we're obviously disappointed to see the we're going to need to reassess. never good news, but what does feel better is it does feel as though we're getting more clarity on what the actual data, more realistic assessments >> and again, when you look at american, southwest and uniteded, yes, they have the max scheduled to return in early june, but as you heard from doug parker, guys, they're going to be moving those dates back once they get a little better sense of what the outlook is from boeing a future date remains to be seen back to you. >> thank you very much great job with those interviews and earnings airlines not only dealing with low, but now worries over a spreadinging coronavirus for more, let's bring in brandon, he's an analyst at barclays thank you for being here with us to pick up on some of phil's thought, i understand you don't cover boeing, but are an airline analy analyst. you've heard the ceos. they're frustrated about what's going on of your coverage, i don't believe delta has the 737 max, but united and american do so if the state gets pushed forward for the return to service, which airline is going to be worse off and how are they going to deal with it? where does that capacity go? >> first off, thanks for having me on the show today sell fi as it's delayed, it has a pretty positive impact on yields. you're correct delta doesn't have any exposure to the max right now i think you left out southwest though they're probably the most exposed given they only fly the 737 and all their growth plans are predicated on the max looking forward so this is a really headache. i think we've heard that echoed today on the conference calls. gl so if this max doesn't return to service as planned in early june and it gets pushed out f further, what happens to the customers and to the prices? can you talk about the market there. >> well i think we're seeing it you know from carriers like jet blue today airbus is seeing delivery delays on their neos, but they are releasing in some older used aircrafts. so i could see potentially plans being drafted at southwest and american where we take an older aircraft, but we're not at that point yet. the broader question here for especially airline investor, these are cheap stocks single digit pes and what we're seeing is healthy demand growth. last year alone, domestic revenue was up 5%. that's with roughly half of the growth fleet grounded so i think that's what gary kelly and everyone's, american airlines was trying to convey today when we get these back, we're going to see a lot of growth >> what about the impact of the coronavirus? the world health organization not yet sort of call iing the highest levels o alert, but certainly aware and following it closely. what does that do to the airline business and at what point may it get serious? >> well, i know day-to-day i know some of my friends are afraid to travel now, but keep in mind as of yesterday, united was saying we're not seeing any impact in bookings or revenue trends obviously that can change quickly. if we go back to 2003 when we had the sars epidemic in asia, i think traffic in the asia pacific region was down close to 8% so this could become significant. i think we've seen that reflected in airline stocks the past week, but keep in mind, the majority of revenue here even for united has the most exposure to the pacific, the majority of earnings and revenue is really the domestic u.s. travel market. >> let me turn back to the 737 max. do you think it's an airplane that people are going to feel safe flying? >> well i'm a little biased because i'm commercial pilot, but i would say at the right fare, a lot of people are willing to take risks, so i don't want to sound disingenuous about it i think worst case, we could see this recertified as a specific time, specific pilot training. with the significant review we've gone through, this should be a safe aircraft to fly once it's certified >> so you as a commercial pilot would have no qualms flying it >> as long as the faa has gone through this process and we get certified properly, i wouldn't have an issue. >> you trust the faa >> i don't know if i'm going to comment. >> all right we'll just leave it in >> we're going to leave that one hanging off there. thank you very much. >> thank you to the bond market and mr. santelli tracking the action at the cme. rick, do you trust the faa >> no, i don't, but one thing i track the all the e-mails about what's going on with the corona disease and if we consider how big a move we've had in the context of how consolidated ranges have been in the fixed income in sovereign space for 2020, look at intraday two year notes. down two basis points now. they were down five at their worst levels of the day. looks like they're going to close as you see on the october chart. the lowest levels since the 9th of october intraday of tens, now down three points, but the low was at 171 when it was down six and if you look at the chart starting on november 1st, here's what's interesting. today, we are going to once again close at the lowest yields since december 3rd, but that was 171. we've moved off that level if you go back to november 1st, that's a similar closing level therefore, we were very close to closing at levels we haven't seen since november. finally, boone yields. minus 31 wow, they were minus 15 a week ago and then the dollar index is having a decent day. euro is not. lowest close against the green back since the 15th. sorry, the 29th of november. tyler, courtney, back to you >> thank you very much coming up u , google trips the competition. job cuts in the jeans and no more snakes and peacocks and kangaroos on the plane, plus bernie sanders rising in the polls. should wall street be worried? 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download now and get your first stock on us. robinhood. bernie sanders experiencing resurgence in the polls this as studies show his wealth tax may not be as effective as advertised hi, robert >> he said it would raise $4 trillion over ten years to pay for new health care, education and environmental programs, but a new study finds the wealth tax would raise 1 to $1.5 trillion less than the sanders campaign says they say it would reduce gdp growth by over 1% and reduce average hourly wages by 1% by 2050 the reason it would raise less revenue is because of tax avoidance by the wealthy and you would have slower economic growth as a result of this tax, which they say would reduce the tax space and revenues sanders' wealth tax, that's an annual tax going up to 8% on wealth over 10 billion no comment from the sanders campaign, but supporters say the tax would lead to more productivity through a healthier and smarter workforce. b even though sanders is rising in the poll, clearly the markets are not taking this seriously because if you look at what impact both the wealth tax and his other taxes would have on investor, it would be significant. >> how do you make that leap that taking, taxing the super rich, would lead to a healthier, smarter workforce? what's the transmission mechanism there? >> that's a good question. the sanders campaign just gave us that broad statement. i suspect what they're saying is you may have less investment in the economy, but you have happier workers, you would have higher productivity and there have, more growth. but that's the good question >> all right, robert, thank you very much. millions of baby boomers have retired many more are about to the problem is, many aren't ready and don't know what to do with money once they're reretid. how to manage it, that is. 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how do you allow it to give you a standard of living for the rest of your life? >> and that 4% rule is a one size fits all that doesn't necessarily work >> correct everybody has different needs. more importantly everybody has a different understanding of what to do and how to take it out i've had conversations with various people that range everything do i take just my principal out? do i take interest in how do i generate more interest in 1% or 2% interest rate environment the 4%, you can't say one size applies to everybody here in this space. >> how about social security what is appropriate to think about when trying to determine when you want to tap into that what did the survey say about how people are tapping into that and when >> surprisingly we found that over a third of the respondents were taking social security at age 62, therefore leaving quite a bit of money on the table. look, i just got my social security year-end statement. it sis it right there, if you retired at age 62, here's what you get, and it's for you, based on how much you put away or how much has been taken from your paycheck age 65 and 70, so either people are -- they don't need the money or they just need to get the cash earlier, or they're stressed out either way people are not maximizing the opportunity the taking the maximum benefit they deserve. >> i think my generation is not counting on social security to be there for retirement? >> i think that's certainly part of the question, though your gen investigation, obviously younger than mine, there's probably more conversation, will it be here? i think less so in my generation, but i think that is part of the conversation. >> as i look at this, a couple things stood out number one, the cash levels are extraordinarily high, from where i sit. number two, it was that on several questions, women seemed less confident than men about either their ability to fund medical emergency or have enough to save for retirement why do you think that is are they underconfident? or are men overconfident >> i think it's probably a combination of both. i think men feel very comfortable, hey, i've got this. >> i think that's right. i think that's right isn't that in life >> no, exactly. >> truly. >> i totally agree with you. >> i think i'm more risk averse than many of my male peers. >> i think women are underconfident they know more than they credit themselves final question here. target date funds fundamentally were a solution to having enough to retire on is there a product that you can theo theory receipt cal to ensure that they don't outlive their money? >> i truly don't believe there's a silver bullet, right it took a while to get into target dates there's going to be a number of solutions that are going to be available in the market. it's going to have various pieces, whether it's guaranteed income for life, whether it's liquidity, different asset classes and a mix of those, but i don't think -- again just like the 4% rule, there is no one size that fits all a lot of firms have been coming to market with their versions of what the answer of the solution may be, but let me just sort of finish with this idea. we're talking about a solution, and i -- we're not exactly sure that people realize there's a problem, right it's great to have the solution, but unless you understand the nature of the problem -- >> you're not going to apply the solution thank you, joel. our parent company nbc universal are investors in acorns. stick around "check please" is next you can always watch or listen to us on the go on the cnbc app. we'll be right back. see? 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"closing bell" starts right now. yes it does. i'm at the wells fargo post, as regulators settle with or charge eight former executives relating to the scandal, including a massive fine for the former chairman and ceo john stump. more on that markets as they just mentioned recovering intraday, flat as we stand, 59 minutes left in the session. i'm sara eisen here in switzerland. president trump's favorite twister target, "new york times" and how it's pulling in record digital subscriber growth.