Seymour, dan nathan. Gina sanchez ce of, good to see you. Lets get to it we start with a selloff. Another rapid reversal in the markets today. Earlier this session, stocks were actually higher hard to believe, but true. The dow is back up above 28,149, but only for a cup of coffee before more headlines begin crossing and more selling programs hit and the market turns south, the cdc saying the u. S. Has done a pretty good job so far with rapid response, and coronavirus cases are still very low. It also warned that the virus could hit us as well that will likely take down Economic Growth and earnings projections. So guy, nearly 2,000point haircut in 48 hours of trading is there anyplace to hide, any way to protect our viewers and listeners portfolios today i think weve done a decent job leading people down that path it comes in the form of bonds as weve talked about for months and the gold market as well. You can say the gold market sold off today. Yes, thats the case, but i still think both work. In terms of what you do now, you have to be looking at levels where this stops weve been talking about one specific level, 3030, just 100 or so s p 500 points from here thats realistic to see it over the next couple days you can see it in 24 hours i think thats a reasonable level of retracement it gets us down 11 , 12 from the all time high. It makes sense for a lot of reasons. If you want one other line in the sand and weve talked about this, i know dan has been all over this, the russell never made a new high while the s p was making the new high. The iym, russell small cap index, 150 is your line in the sand there tim, any reason to believe that the selling is over no, theres no reason to believe. If you think about what spurred on this next round, its a combination of understanding where korea, really at the center of the Global Supply chain certainly as we get into semiconductors and other things hit. The fact is disease is spreading and is ultimately after dpekting consumer confidence. We talk often about the consumer having been the savior for this economy. Lets be clear. This is a market that absolutely unperturbed by the move in the disease and where we had gone in the three weeks while bond yields were probing if you look at the treasury market, 132 on the tenyear, took out those lows from 2013 which is the last time we were around here, that tells you and that told you even before the equity markets responded. I dont want to be sensational here in fact, i think markets are on a shortterm very oversold having said that, whats driving sentiment right now is something that is impossible to understand and why should that change overnight . On our special last night, dan, you and josh did a great job. You said something which proved accurate you said, both of you agreed, that if the market tried to rally this morning and rolled over as it did, that would be a bad situation for equities. I guess the situation was there was no scenario, no tweet, no nothing that was going to come out and change sentiment overnight. I think whats interesting about the cdc coming out and the leg down that the market took in closing really near the lows here, just tells you, if people are dissatisfied with the way china, authoritarian government, has handled this disease, how do you think its going to be in a bloc of nations that have Free Movement in europe how do you think its going to be here in this country with a bunch of citizens who have a lot of guns. Its not going to go particularly well. Thats really what the panic was today. I guess what i would say is, i dont think theres really any cause for alarm for the same reason, at least as it relates to the stock market. We went up 6 , 7 , 8 over the last two months for really no good reason. The fact weve given back 6 or 7 makes sense 3030 basically went up 12 in the straight line. Thats a level where you start buying the dip or thinking about those names youve wanted to get into 3030 and the s p 500s, the late october breakout, if we don know what the heck is going on, a lot of traders and investors will lean on technicals. Theres a point of view, gina, people say why are you making such a big deal about this luckily the fatality rate is low, 14 cases in the united states, not that widespread in europe here is why and tell me if this is wrong china is, lets call it onefourth of the Global Economy, europe onefourth of the Global Economy were a fourth and the rest of the world makes up the rest. If we start to see a slowdown in europe and china, as we already have, we have to take down earnings estimates, multiples, earnings yield, everything has to come down. I agree with you. Im not sure just going back to october will cover that scenario are we dealing with a local asian outbreak, or are we dealing with a Global Pandemic those are two very Different Things even in the Global Pandemic scenario, youre dealing with something probably a quarter to a half year long in terms of pain then you tend to get a recovery from there we dont know what were dealing with yet and were still trying to figure that out the big stress test is what happens and how does the u. S. Handle it. If the u. S. Cannot handle containment of this virus, no one can. Keep those stock charts up here, the s p laggards look at the names, american airlines, occidental, southwest air, live nation and marriott. Here is why i find this interesting, tim, live nation is a concert promoter theyre global, but they get people together. Southwest airlines basically has no international presence. A little bit, whatever, puerto rico, thats it. This is the market saying people are going to be nervous about congregating in groups and doing things where they might spend money. So weve never contemplated this dynamic in this country, at least not in my lifetime as has been pointed out here, we have a case where this is typically a contained geographic event. Consumer confidence has been critical to this market. The other side of this, though, when the fed starts to say and theres been quotes over the last couple days, essentially were ready to respond or were watching, what can the fed do at this point it gets to something we also talk about on this show for a long time. To me the feds comments sound a lot like the boj who has been flailing in the wind for many years here youre right, brian, to point out the domestic element of that selloff. I think airlines, multinational ones, i think the entire Airline Space is being sold for that reason guys, weve got to move on. Well get back to this macro discussion we have to turn to the other big breaking story of the evening. A rather shocking move bob iger will step down as ceo of disney. Effective immediately. Iger recently signed an extension. Hell remain as executive chairman through next year bob chapek will take the ceo job. Gina, ill come to you you live in the shadow you live in l. A. , i think right near disney or at least near the executive offices of this company. Whats your take on this move . It came out of nowhere i think it came out of nowhere, and the stock is reflecting that. If you look at disney, they have so many great chips on the table. Obviously coronavirus is hitting them really hard, particularly in parks they have shanghai and hong kong both shut down they were about to revive mulan which would have been enormous and theyre pushing that back. Theyre getting hit right and left interesting that iger steps down right now at this moment handing this off to the head of parks makes sense. Parks have really driven revenue and also shown they are completely inelastic in terms of demand they keep raising the price and they cant get the numbers down. People still continue to come and pay. Thats huge as well. The fear is theyll get fewer International Visitors but may make that up with more domestic visitors who are deciding not to go to mexico or hawaii, were going to stay home and drive to disney absolutely. You think that plays out . Is that a scenario i think disney still suffers disney is probably one of the best places to go catch the flu, for example, because of so many children, but disney also has other huge forms of revenue disney plus is on fire if you look at the numbers, thats saying were here, were real and our content packs a punch. Im not looking to go to disney on the best of days respectively unless i can get on mr. Tow mr. Toads wild ride or country bear jamboree. Last april we exploded off the 120 level which had been resistance for a long time thats where you reowned the stock. The things were talking about as far as the coronavirus and disney, and to not try to be insensitive to whats going on, those to me are things im fine with on disney those to me are something where even on revenues for the next two quarters, thats something they wont get back. Its the core of those four parts of the disney stool that are holding up, includes studios and Consumer Products. It does include the broadcast and it certainly includes the other parts of the disney plus story. To me the bob iger news is critical right now this was the man who certainly had driven a lot of value, certainly was part of the reason why the multiple at disney far exceeded that. Yes, this Business Model the rest of the media sector has not even been close here this is a critical dynamic here even though Disney Studio in the last 12 months has arguably never had a 12month period, and i bet we said that multiple times over the last couple years. We see what theyre doing in streaming, their ability to use all parts of the fly wheel to support Consumer Products. A great point i think they had seven billion dollar movies last year with the marvel franchise you can sign up all the disney plus customers at 5. 99 a month. That would take years to replicate the margins of a family of four or five where the tickets are a buck 50 for two or three quarters though in the way they reorganize these businesses, obviously the new ceo comes from the ol Parks Division this guy is going to be reporting to bob iger for the next 18 months or so i think bob iger is still the ceo for all intents and purposes i think its important to remember iger has been there for 15 years. What did he do he bought pixar, lucas, marvel this is the path forward they bought fox, executed on disney plus. Lets see what new blood can do. I think guy is right you get this thing back down 20 , that would be down to that 120 level, and all of a sudden you have a thin trading at a market multiple below 20 times or so and you say lets see what the next decade looks like. Ill go back to the point i made earlier even in the Global Pandemic scenario, this only lasts one to two quarters at most a good value stock like disney could represent incredible value. Looking at a chart. It busted through the 50day moving average tried to hold for about a cup of coffee and drop through. Theres nothing underneath i can show you everything is broken in the up trend we had a 45degree angle the best names out there, theyve all broken below them. Thats the first level thats been breached. Now you have to start thinking about other levels of support. That 120 should be fundamental support for this stock i cant tell you whats going to happen in a big market downdraft, but that should be a fundamental level. On the impact of parks, im looking at a Deutsche Bank report that says this is essentially an 8 hit to eps if you base it on what theyve done, in terms of closing the parks and the impact in the here and now that were measuring now, this should not be changing your view on disney. Think about where we all were. I think a lot of people were with disney two months ago, after we had two quarters to report disney plus and got to see what the studio was doing what cpg and direct to consumer. I think you have to take a deep breath this is one of the stocks where you take a moment and you dont have to buy it tomorrow, theres a lot of stuff to learn about a management change. This is one of the great companies. By the way, 80 hit the eps the stock is down 7. 5 this month. Well see if it holds. The market says were going to take it down 8 . By the way, a lot of questions were going to get some answers. Because the bobs bob iger and new Ceo Bob Chapek will give their first interview to cnbc with Julia Boorstin. Its live hopefully right around 5 30 p. M. Eastern, 2 30 pacific obviously. A lot of questions julia will get answers dow finished down 879. Were back after this. Nce, righ . No. Uh uh. Is it Homeowners Insurance . No. Uhuhuhuh is it duck insurance . Nope. Ahhh do they pay me money directly when i get sick or injured . Yeah. Aflac you got it. You know aflac boom get help with Expenses Health insurance doesnt cover. Get to know us at. Aflac dot com. woman no matter what business you are in, Digital Transformation never stops. Verizon keeps business ready for whats next. man we weave security into their business. second man virtualize their operations. third man and could even build ai into their customer experiences. We also keep them ready for the next big opportunity. Like 5g. woman where machines could talk to each other and expertise could go anywhere. woman when it comes to Digital Transformation, verizon keeps business ready. The most reliableou are, xfinwireless network you to connect you with those who matter most. Thats because its the network that gives you the best coverage and more flexible data that you can share, mix with unlimited and switch at any time. Youll save up to 400 a year on your wireless bill. Plus, get 300 off when you buy a new Samsung Galaxy s20 ultra. Xfinity mobile. Click, call or visit a store today. Welcome back to fast money. If youre just joining us, bob iger stepping down as the longtime disney ceo. Bob chapek who formerly ran the Parks Division will run the entire company iger will stay on as executive chair and they will both join us for a first on cnbc interview with Julia Boorstin. Dow component, the company matters. Stock, like everything else, fell today lets turn back to the macro markets. Tech, like everything else, falling hard in todays selloff. Last wednesday the tech sector was hitting alltime highs today it slipped into a correction what does that mean . It means the sector more than 10 below the recent highs, the fall fast and furious. Xlk etf falling more than 3 the highflying magga stocks, microsoft, apple, amazon, dan, the question is this, is this the start of more selling or is there any way to sort of suss out whether this has sort of been washed out . Ill just say this. Lets use microsoft late january when we started getting downward volatility about this virus, microsoft traded i think 160 or Something Like that. Three weeks later its up literally 20 . You would have thought they came up with a vaccine for it its taking out the parabolic move over the last couple weeks. That makes a lot of sense. Can you see the stock back at 160 . Has apple gotten hit a little bit because of the twoprong kind of attack, the supply issues and the demand potentially in china you have to take some of this stuff out. These stocks have come a long way over the last 12 months, valuations got a bit stretched to me youd like to see them overshoot to the downside as they clearly did the last month to the upside. I think theyre more than stretched. It would have taken years and years and years to get your money back making investments. You have to keep pricing huge growth if you look at the impacts, the impacts are twofold as you mentioned. The first is obviously the supply chain to the degree theyre waiting for parts coming from factories in china, korea, other parts of southeast asia, thats a big deal then, of course, you have the other problem which is the consumption problem. Right now everybody in wuhan is literally in their homes when you have that kind of shutdown in terms of consumption, thats going to hit you both ways. I agree with you, i dont think even in a short period of time its like everybody in the investment world is looking straight past this. So thats totally rational except for the fact that i think the markets didnt Pay Attention to trade war the markets didnt Pay Attention to even seasonal and also cyclical factors for memory chips when theres restocking. Semis didnt react ever in the last year and a half went to alltime highs this is what everybody is saying this is a case where i think this is a catalyst that allows people to reassess where semis actually were. This pullback has been strong and swift. A couple of downgrades to nvidia, these were downgrades, literally people looking at what q1 is going to be and analysts trying to get out there. Analysts like ceos want to do this i want to go back to fanning and magar, these are not like other stocks. Microsoft is in 379 etfs, bigger than 10 in 14 of them. Thats just microsoft. These stocks, we talk about their importance to the market from a waiting, from a market cap perspective. If youre a market cap weighted index or etf, theyre not the same one of these things is not like the other. You better hope this passive investmenting trend thats been all the rage continues god forbid it stops. You think this is bad, that will be that will make this look like a garden variety selloff. With that said, im not suggesting its going to happen. December 2018 we saw 15 drop in a couple weeks. What we worked in, we traded at 48 billion valuation, lost 85 of its value in a month and a half now we talk about it every day stocks can go down they go down faster than they go up however, that 160 level that dan just flagged on microsoft, thats right im not saying its going to stop there thats as good a level as any. On february 11th we said, guess what, microsoft made an alltime high reverse lower on two times normal volume. That to me is the top. To me, if we think about what the market is doing here, everything you guys are talking about is actually something that, were speculating the world is going to change dramatically for the consumer and for the economy. If anything, december of 2018, that is when we were worried about a fed being way offsides people were starting to get to 2019 and worry about recession is that what were worried about . Were worried about the coronavirus being a disruption for one or two quarters and downgrading gdp or is the economy catching up to the fact that we werent on solid footing before lets be clear microsoft and google in particular, its not like theyre booming businesses in china. The majority of microsoft office, google is not really in china at all this is not a consumer play. Google is in china with android. Which they dont charge for. Its an important part of their market share, 85 of the global smart phone market share. Im just saying you wonder what the Consumer Impact is on microsoft were not going to microsoft world. Maybe we are were going to take a quick break. Were back with an interview with bob iger and bob chapek, a big one next hey there people eligible for medicare. Gimme one minute. And ill tell you some important things to know about medicare. First, it doesnt pay for everything. Say this pizza is your part b medical expenses. This much about 80 medicare will pay for. Whats left is on you. Thats where an aarp Medicare Supplement insurance plan, insured by Unitedhealthcare Insurance Company comes in. This type of plan helps pay some of what medicare doesnt. These are the only plans to carry the aarp endorsement for meeting their high standards of quality and service. So call Unitedhealthcare Insurance Company today and ask for your free decision guide. With this type of plan, youll have the freedom to choose any doctor who accepts medicare patients. And when you travel, your plan will go with you anywhere in the country. Whew call unitedhealthcare today and ask for your free decision guide. Welcome back to fast money. Big news from one of the worlds biggest media companies. Disneys bob iger stepping down at ceo Effective Immediately bob chapek who ran parks will now run the entire company although iger stays on executive chairman theyll both join us for an interview with Julia Boorstin in a couple moments were waiting for them literally to take their chairs well go to that live. For now, lets talk more about this big market meltdown continuing today most people cant just sit home and watch a ticker all day so if you missed it, here is a recap of the key things you need to know. The dow fell 879 points. Its now lost nearly 2,000 points in just two days. The tenyear yield crumbling to 1. 34 , its lowest level ever literally going back more than a century. Socalled fear gauge, the vix moving higher. Perhaps the most shocking stats at all, only six s p 500 companies are higher this week, three of them are coronavirus related, Companies Looking for a solution and, of course, clorox for obvious reasons. More than 100 stocks are down more than 5 in the s p 500. If you believe we have now come too far too fast to the downside, weve got a way to play a bounce if it happens. Mike kcoe in san francisco. Jed we talk about protecting your portfolio by bying put and put spreads. Today well eel look at opportunities in stocks that might be over sold or represent some value ill point out in situations like this, you dont want to run out and catch a falling knife. Were not advocating going out and either buying stocks with whatever excess cash you have or using leverage to do so. The other thing i would point out, in some ways the decline has been orderly, not huge gaps but orderly decline. The other point i would make is try to avoid double exposure if you look to do things like selfputs because premiums are elevated, dont do so in companies exposed to a great deal of risk examples would be travel, airlines and Energy Stocks i was looking at microsoft, ways to take advantage of the fact that volatility is a little higher one of the ways you can do this if you own the stock and thinking you want more exposure to the upside butdont want more exposure to the downside is using a 12 call spread. I was looking at april 175, 185, in this trade you would buy the 175 calls. Those were trading for a little over 5. 00 and sell two of the 185s for about 2. 15 netnet spending about 95 cents. Really all youre doing is trading off the upside above 195 and you get incremental exposure up above 175 that makes a lot of sense because the alltime high in microsoft is 190 hard to see how were going to get there in less than two months another thing you can do if you dont own the stock is something called a call spread risk reversal at this point i was looking at selling the 155 puts and selling the 175 calls. You can do that for even money youll get exposure from 175 to 185 on the upside, but not forced to own it unless it falls to 155 that represents a better than 20 decline from the peaks we saw not that long ago. Its a way to get exposure without buying the stock youre taking advantage of the fact premiums are elevated in some of the higher risk areas, the higher premiums are deser deserved mike coin san francisco, thank you very much. Dan, your take on that strategy. Offered two different ways to do it. The put sale one is one in a market like this can be complicated for people, the notion theyre selling a downside put and having the stock whoosh through that price if you have a big down draft its not too different than owning the stock and vk the down draft. Mikes call spread to add leverage and yield to an existing position, especially in a name like microsoft, the price of options is so elevated makes a lot of sense again, fast markets, doing a lot of legs. Its kind of complicated for most people. I just think in general its an expensive premium. That could be as easy as overriding a stock you own 100 shares, sell one if the stock is below the short call strike. You think thats too complicated . It depends. A whole show friday at 5 30 called options action. Can i dan and what these guys do, they make it very understandable but i will just say simply, if you have puts on, two days of vol like we have, what i typically do i tend to roll these puts out these are moments you waited for, especially when you bought qs 5 of the money. For holding it a vol spike to 40, history says we dont do that two days in a row of 95 down days is extraordinary. Take some profits and move these down the line. Good stuff here, dan. Thank you. Mike, thank you as well. Well take a very short break and come back with a first on cnbc interview with bob iger and bob chapek stick around and now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Dont just plan to retire. Plan to live. An annuity helps cover your essential monthly expenses, so youre free to live the life you want. Find out how an annuity can give you Lifetime Income at protectedincome. Org can vo for president. Vercome thats Mike Bloomberg. A middle class kid who built a Global Company from scratch. Mayor of new york, rebuilding the city after the 911 terrorist attack, creating 450,000 jobs. Running for president and on a roll. Workable plans to deliver on Better Health care. Affordable college. Job creation. Common sense plans to beat trump, fix the chaos in washington, and get things done. Mike im Mike Bloomberg and i approve this message. Welcome back if youre just joining us, a big bombshell from disney tonight. Longtime ceo bob iger stepping down Effective Immediately, replaced by bob chapek both men are sitting down right now with Julia Boorstin in los angeles in a first on cnbc interview. Julia, take it away. Thanks so much. I am joined now by bob iger, as of today executive chairman of disney, overseeing all creative endeavors today and also bob chapek, as of just now the new ceo of the Walt Disney Company thank you both so much for joining us today. Pleasure. First, to bob iger, you back in 2017 when you announced the fox acquisition extended your contract as ceo through the end of 2021. Why make this change now more than a year and a half before your contract is up . The company has a great collection of assets, businesses, brands, franchises, particularly with the acquisition of 21st century fox and the purchase of the larger share of hulu. We also have recently deployed a very new and extremely important strategy, the directtoconsumer strategy that led to the espn plus product being launched and, of course, disney plus which launched in november as we looked at the businesses, we have a great set of assets, a great strategy whats next and what was next in terms of my own priorities is making sure that the creative pipeline in the company was really rich, that all of our creative engines were working extremely well i wanted to spend more and more of my time on that the only way i could do that was to pass the torch on to bob so that my direct reports and the authority over our businesses will shift to him, freeing me up to do what i think is our next big priority. For investors, this seems abrupt the stock is trading down. I interviewed you just a couple weeks ago after your Quarterly Earnings report. How long has this been in the works and for how long have you identified bob chapek as your successor . Weve had a Succession Process on going with the board for actually a few years, something that we talk about virtually at every meeting, and we identified bob a while ago as a likely candidate to succeed me, but they went through a thorough process and discussed other possibilities. Its again something that the board has been engaged in for quite a while. They got to know bob very well during that period of time he ran one of our most complex, one of our most important businesses, global parks and resorts, for instance, during a time of great capital investment, at a time of great change and did so very well after working for the company for 30 years in terms of the market today, whats going on obviously today is certainly very serious and a concern to us. The timing is unfortunate, but not anything we can control. It certainly didnt play into the timing of this decision. You are signed on to continue through the end of 2021 overseeing all the creative elements of the company, but at the same time bob chapek is going to be running the daytoday business. For you as executive chairman and you as ceo, will that create confusion about whos in charge if youre going to be reporting to bob iger . How do you address those concerns and potential conflict while youre executive chairman . Weve worked together extremely well our Senior Management team has worked together quite well we know each other well. We get together often. We share a number of the issues of our days in terms of running the businesses theres a lot of familiarity, a lot of collegiality. In terms of confusion, were not really concerned about that. Bob is going to be running the company and running the daytoday businesses, as i said earlier. All of my direct reports shift to him i have one direct report, and thats bob well be focusing on the creative any of the big creative decisions that have to be made, i fully intend for bob to be at my side. Its important for him to learn as much as possible. What this is about really is, we believe, a really good success process and a really smart transition process the goal here during the period of time that i will be executive chairman is to create a transition process that is smooth and functioning and effective. Were not concerned at all about creating any confusion. For you, bob chapek, congratulations on this new role your predecessor, bob iger, made a number of massive changes that really transformed the disney company, acquisition of marvel, pixar, lucas film. The lawn of of the directtoconsumer business. What do you see as your Mission Going forward . Do you imagine transforming the company as much as he has . I obviously have huge shoes to fill. Bobs legacy in the company is just profound. I think my role is now to take the strategic pillars hes so well established over the last 15 years and continue to work on those and implement those in the marketplace, most importantly our directtoconsumer initiatives, but at the same time look around the corner for what disruption might be going on in the marketplace that would necessitate a fresh look at those things right now the course that bob has laid is one that we fully intend to follow and i think will pay dividends for our shareholders for years to come. What does it mean for you as the new ceo to have iger as the executive chairman for more than a year and a half . Its certainly a privilege to have bob Still Available and there for guidance ive had a front row seat to bob igers magic at disney now for 15 years to be able to extend that for the next year and a half or so while i make the transition into this new role is just a luxury that frankly i couldnt ask for more. Do you feel like your mission and your purpose as ceo is to continue on the path that iger has started . Or do you envision more need for change or potential acquisitions or sort of shifts down the line . I suspect in the beginning it will be more of the same because essentially the strategies that bobs put in place are really longlasting in terms of where the company is going to go in the shortterm. Over time though, as we recognize, disruption and transformation are inevitable in this business. It hits each of our businesses a little differently its inevitable those businesses will be disrupted and its recognizing at that time when well need to shift. Thats i think the art of the job. Youre taking on this job at a moment of incredible change, not just in the streaming business, were about to see the launch of several new streaming services, but also in the Parks Division you until today ran the parks and Consumer Products division two of disneys parks are closed, hong kong and shanghai you oversaw the launch of the shanghai park. No sign when the parks will open are you concerned about the longterm impacts of coronavirus not just on those parks but potentially on the cruise business which youve run . The longterm health of our business is a function of our consumer demand for unbelievable storytelling and our product while this is certainly a bump in the road in terms of the coronavirus, well come through this like weve come through every other challenge that weve had, and that affinity for the brand and our storytelling will way outlast any shortterm blip we have from corona. Bob mentioned the stock market decline over the past couple days. Its been a very volatile time in the markets theres always a question how the consumer will react. Will there be an economic downturn that could impact Consumer Spending or advertising. Whats your outlook as you take the helm of this International Major multiplatform Media Industry about the potential risks . Were very conscious of those disruptive elements, socioeconomic elements, social elements that can come in at any time and disrupt our business. I think when you have the core assets that weve got, those franchises, the disney brand once again will sort of see our way through all those disruptive elements it doesnt mean we wont get surprised tomorrow but weve got the strength to get them them all. Youve worked in many different parts of the diz business, most recently parks and Consumer Products, also the studio, distribution of home entertainment. Youve not worked in the tv bundle part of the business, the part suffering from the cord cutting trends which is something ive talked to bob iger about as someone who has not worked in that business, whats your outlook on the threat of cord cutting and how to handle it to me the commonality between our businesses is our consumer ive worked in consumer businesses my entire career, and its not ironic that our strategy for the Media Business is a directtoconsumer business where we have the oneonone relationship with the customer without having a lot of middlemen in between thats my sweet spot and i think thats something i can leverage now throughout all my experiences, not even disney but even before disney in terms of figuring out how we take the data, the information, the technology and, once gn, our storytelling direct to the consumer so we can take the great equities we have and continue to build those. Bob, as you focus on the storytelling and less on the day to day, do you imagine extending your time at the Company Beyond december 2021 . No, i dont ive been with the company 45 years, was in the ceo job for 15, president and coo for five its been a fun run and im looking forward to the run ending i still have a job to do. What will you do after 2021 im going to use my imagination. Im going to go to disney land. As im sure youll probably make your way there many times before then. I want to thank you both so much for coming to us after this historic announcement. Bob iger, bob chapek, thanks for talking with us today. Back to you in the studio. Julia, thank you very much for bringing it to fast money. Tim, we listened anything you heard from the incoming our outgoing ceo and still executive chairman, by the way, that would change your Investment Opinion on disney if you take anything at face value about cessation and transition, nothing changes for disney shareholders, this is the best content out there, the best dtc out there, or at least a challenge to netflix and certainly trading at a significantly cheaper multiple in the core dtc business as someone that is long on stock and hoping we didnt hear about either some shakeup at the company for a specific reason or the fact there was structurally something broken, this is about what we thought was going to happen nothing new on news today. The timing was uncomfortable based on the day the markets had. This would never be a happy day for disney shareholders. But thats what i heard. I agree with that i took a lot of comfort from both the way they set up why this happened and also the plans going forward, meaning theres going to be sort of a continued successi succession and bob iger rides into the sunset. Theyve got to say that the streaming wars have really just begun is now the time to change . I think to your point, what else are they going to say of course this was in the works. Were a welloiled machine, ses cession plan it goes back to what we talked about earlier in the show. You have to have your lined in the sand for me 120 makes as much sense as everything. It will give the stock a more reasonable valuation in terms of where its been and its a level we had trouble with on the upside for many months many years ago. Can i ask, what is changing maybe you felt this way since that point to me the news over the last couple weeks has not really changed for this company today what we heard apparently does. Big news day, by the way. By the way, sales force, their coceo stepped down as well. Master card yesterday. Coming up, how should you set yourself up for tomorrows open. We dont have many futures left. ltawel lk about what to do if the selloff continues. More fast money after this [narrator] at Southern New Hampshire university were committed to making college more accessible by making it more affordable. Thats why were keeping our tuition the same for all online and campus programs through the year 2021. [woman] i knew snhu was the place for me when i saw how affordable it was. I ran to my husband with my computer and i said, look we can do this [narrator] take advantage of some of the lowest online tuition rates in the nation. Find your degree at snhu. Edu. Supporting Innovative Companies that will shape tomorrow and Building Workforce development and tuitionfree College Programs to generate the talent companies need. 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Allegra helps you say yes with the fastest nondrowsy allergy relief and turning a half hearted yes, into an all in yes. Allegra. Live your life, not your allergies. Again, if youre just joining us, if youre busy today and didnt Pay Attention, you missed another one. Stocks rocked for a second straight day every s p sector finished down we dont have futures yet, no asia yet we will have a special tonight, by the way well get those trades any way to position yourself tonight . I watched some of the special last evening. Great job. Outstanding job they pretty much outlined what was going to happen. Tomorrow what youre rooting for is a down open and followed by a rally. Weve seen that before i think tomorrow is your relief rally day. You hope it opens lower and you get a bounce in some of the names. Not to suggest the market cant go lower the next couple weeks, but tomorrow is your bounce day. I think youd like to see yields stabilize weve seen one five breached and this new alltime low at one, three, three in the tenyear treasury yield i think thats something that helped equities. What is that telling us, dan . Weve all been talking about this for months and months its been a pretty clear sign if you look at the last time were at these levels. 2016, 2012, there were serious growth fears in europe in 2012, in china in 2016 i think that move from we started the year or ended last year at 2 on the tenyear treasury all the way down here i think it was telling us something before this virus. This is all coronavirus im both asking the question we have to say if this is all coronavirus, this is a case where youre looking at a 20 relative strength indicator on the s p which is as oversold as weve been if you look at where yields had their last significant move lower and it wasnt the summertime move, september 3 to october 3, the s p went on a 16 run. You get to a place where markets digest this news, had to take a breath we were in agreement markets had to take a breath thats not going to happen tomorrow i actually dont think we know where we are yet if you look at how coronavirus works, we dont know how big of a problem this is going to be. It will take weeks if not months to figure this out. Dow opening to 3030, yields stabilize, then you bounce. Good stuff. Numbers well be watching up next, what namesspif, ecics that all these folks around the desk may be looking at during these turbulent times. Thats next. With a worldclass software experience. We ended up creating, as you all know, so much more. Peloton is truly a category of one and were just getting started. Now, lets do this. Together, we are going further than we ever thought possible. B11 is that . Steve harvey . Give me b11 isnt bingo just an ok use of your hosting abilities . Its like getting a Samsung Galaxy s20 5g, and not getting it with at t. Bingo no, i only called out two letters. Now, you might have go, you could have bi, but you cant have bingo. Get the most from your revolutionary Samsung Galaxy s20 5g. Switch now and get one free from at t. Building 5g on americas best network. This omelet is even better than yesterdays. Ah, thats what you said yesterday that was yesterday, chris. Same time tomorrow, judy . Ill be counting down the breakfasts. Hmm. Could i get a little more coffee . Oh, of course for the best price, book at hiltongardeninn. Com. All right. Welcome back to fast money. A lot of people working today. Cant stay tuned all day long to the markets. Weve got you covered. Tonight at 7 00, markets in turmoil right here on cnbc, 7 00 eastern time. Time for your final trades tim seymour. In i can markets, you try to find best of Breed Companies disney today, if we take that interview by bob iger after the bell at face value is a company that was going to go through this transition, a company thats pulled back and looks very interesting we like it two months ago. Like it more. Were selling high yield, hyg. If you look at the markets right now, particularly the credit markets, we dont think theyre fully priced in yet. Consumers are most of the hig market. Ebay, lots of news there, selling off assets we learned a lot in the commercial breaks, your nickname being jocko, well talk about that tomorrow. Citi thanks for make you money im here to level the Playing Field for all investors. Theres always a bull market somewhere. And i promise to help you find it mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica other people want to make friends. Im just trying to make you some money. My job isnt just to entertain but to educate and teach you, so call me at 1800743cnbc. Or tweet me jimcramer. You have to hope for the beside but prepare for the worst. Yep. Talking about th