Disney ceo has the story changed too . Apples meeting gets under way Halftime Report starts right now. Lot on our plate today. Let get to it. Our team here today, najarians, and Cnbcs Jim Cramer the host of mad money. The president of Yardeni Research is with us. A full table for this meal today. Lets begin with your money. Stocks are higher. Most important ly, perhaps, so are bond yields. Jim, ive been talking about stocks werent going to be able to stabilize until bond yields stopped falling like a stone. Right. You said this morning, quote, i think you have to start buying something. Right, but not be aggressive sure enough, yields went down again. Coming in a little quick sand here because if rates continue to go down, people will give up some of this if you havent bought any, the markets had a very big move in the morning. Theres a lot of stocks that are down so much its worth starting as a great man once wrote to me as i Read Everything in the morning, do you know what happens when you get the flu you get sick it was the most rational thing ive read. Ed, i start my day every morning with you, as you know. Thank you. Scotty, wisdom. You say theres a pandemic of fear right. Are you saying theres too much fear . As an investment strategist i am more concerned, more fearful of the governments reaction in terms of as soon as it breaks out anywhere, theyre just shutting off entire cities, which just increases the fear factor i mean, it is a virus. Weve had other viruses. We have a virus every season called the flu it actually, so far, shows evidence of killing a lot more people and if he canting a lot more. That sounds like a level of complacency ive been asking everybody who comes on the network rrk we too complacent about it im not complacent about the way the governments are acting by acting so aggressively, they increase the odds that this had will be contained and by the spring it will be behind us. And in the spring there will be growth, and these will continue to be buying opportunities. Because the rates are going down again, that is the kiss of death in this market you can expect that things will give up. I dont want to scare people f youre older than 75 or 80, its bad. Its bad if youre young, its surprisingly good. And if youre a child, its ridiculously good versus the number of children that are dying from the flu this year. Dr. Fauci, when he was on last hour, was certainly came off as a little more reassuring than yesterdays headlines. Yesterday was that conversation that was bad. That was hug your children i immediately called my wife and said okay, 3m. Get on amazon right now. Stockpile. I want everything taken from the store, empty shelves at every store and want them at our house because that comment, there was a comment that said basically, your life is going to be disrupted. And i talked to my kids. I go back to the fact that is it really safe very low odds that will occur . Is it really safe to start buying things until bonds stabilize . No. Until the dividends are safe. As these bond yields keep falling, they make stocks look that much more attractive. But its a scare factor. It is but look, were seeing the convergens overseas. Investors here, largest stock market in the world. Thats whats important. Let me ask you Something Real quick if its too exclusively to the virus, why is United Health care down far more than the s p, why is health care as a sector not outperforming . Answer those questions, the market is investing a more than 50 chance of Bernie Sanders getting the nomination. At times ive disagreed with jeff this is not one of them. When i see everyone in a debate last night trying to attack a guy, what it tells me is that guy is the frontrunner. I agree with theres a path i agree theres a path lets say we get a dramatic decline in employment because the virus is more malicious than we think and bernie wins, United Health, its not like it goes lower. It doesnt exist so its really hard to buy a 250, 260 stock that may go to zero, because thats what bernie wants. Lee cooperman said bernie cant win if he calls himself a communist but he has many communists tendencies and one of them is appropriation. Rich people are kulaks look at those guys. Isnt florida a rather important state to win to get to be the next president . And it seems to me these comments on castro i thought that was important. I think he just lost florida is my opinion. He goes on to say it seems highly unlikely bernie could win the general, so whats the big deal maybe this is the dark side of momentum investing the market goes down on a kneejerk way on a bernie rise, but the market going down makes ber bernies rise go down. But the correlation has been with the virus rather than Bernie Sanders. But thats part of his point. Hes suggesting maybe we should pay a little more attention to sanders rise and thus that is an overhang on the market in ways that the virus may not be. You know, i dont think that anybody nobody i talk to believes that only the virus took the market down. Right. When sanders came out of the first debate so strong and his polls moved up, youve seen the market trade down. Its impossible to disaggregate the forces take being the market down you cant do it. Of course its a tell when you have the Health Insurers come down and some of the other health care companies. Here is how im looking at it. So, take my exposure down. Same position, same positions. Yesterday, i put some money back into the market towards the close. About last half hour on stocks that i own their trading positions, they were baba, boeing, a couple of others United Rentals on pause i sold that stock at about 150. Came down on earnings, 135 traded back up to 160, ludicrous. I just wanted it to be there i took all those positions off with the exception of about 20 this morning because im not so sure this market holds the reason why i was comfortable buying them and holding them through the morning, at least most of the morning is because asia is closed now theyre all sleeping im not going to hear any updates about the geometric progression of the virus in korea. Ive spoken to over 20 companies this week alone i spoke to five companies. You hear 50 is back to work, 60 is back to work. Tell me about it its 15 of our white collar sales force, our white collar people are back to work, working from home. In terms of the production lines, supply chains its about 30 . Weve got a long way to go. What do we do if we come out of super tuesday and sanders has an even tighter grip on the nomination and the virus stories start to percolate even more, what does that mean for the stock market and vice versa what if the virus headlines start to dissipate but sanders continues to strengthen his grip isnt that still the negative on the stock market people are going to say that. I think theres a chance that the economy gets a little soft i think were going to be incredit ebl inkre incredibly its antistock market its not neutral he doesnt like the stock market. Its black and white. You see what the market is doing. Interest rates. Can you throw me an intraday, guys . Its not just a stock story. Its a bond story in many ways as well. Throw me an intraday in the back, tenyear, 30year. There you go yields go down, stocks go down this is the overall point. Until you see stabilization in the bond market, how can you confidently think its okay, as i asked at very top, to start buying stocks . You can look at the stocks on individual basis i thought it was interesting that jim said he called his wife and said get on amazon and stockpile. I added to westrock, a core holding. Some have added cash, they may not have a full position i think to myself, whats going on with this they make cardboard, paper cups like these this is not affected i bought it last june when the trade war disrupted it when i hear jim say stockpile, stockpile, all i can think of is more and more cardboard being used. 5 yield. 5. 2 yield. Safe. Should benefit in this environment. You can go in confidently if you know the company youre buying if youre being strategic. I can pick through that. There are a lot of stocks that are part of our correction collection, if you want to call that. Yep. 60 of the s p is in correction 24 , by the way, is in bear market transports, getting smoked you look at some of the tech stocks, apple is down 10 amd is double digits im going to read the double digits without giving you the numbers. Facebook, micron, nvidia, paypal, qualcomm, texas instruments. A am gen, bank of america, disney, dow, goldman, harley, jpm. I could go on and on and on. Not yet time i dont think so. The reason i say that, what were seeing in the market is a market that is reacting to the point of everybody else, but i think 70 of it is the coronavirus. The other 30 i would put in Bernie Sanders and how hes looking so far as the frontrunner the combination of what were seeing right now, i still think weve got downside in front of us the reason i think so, i keep continuing to look at this market we arent really focused enough on whats going to happen here if it is the u. S. , if we start to see some of that . Even though i think youre right, its more like a flu and in certain parts of the demographic, society it will put a fear factor into people when they have fear, they sell what do they sell . The most exciting names that had the biggest runups to the upside microsoft. Absolutely screaming to the upside after its earnings call, 160 to 190 its almost reversed back. I think it would be a buy if you get back to those levels where that stock was before the earnings, because its still microsoft. Its going to be a great stock but i think its probably closer to 160 micron, i think somewhere closer to 50. Names out there that are getting sold off when you look at the fundamental story, c suite itself and growth factors when we dont have the virus right in front of us, those are the names im looking for. I think its still early right now. Today is a great example of it what kind of movement from high to low, and in between, have we seen since before the market opened, jimmy . Rates, rates, rates. Right. Theyre telling you its going to slow down again were not doctors. Were not fauci. I would point out i go to milan quite a bit. You could live in that airport, its so gorgeous, like that movie. It is so easy to board a flight and go you go its gorgeous. United arab emirates, 8350 jfk airport. Are we really letting that happen thats why i thought the italy news was a game changer for everything. You bet thats where we go. I think that really crushed the markets, italy. You bet it did. Who would have expected italy . I mentioned that on monday but look, if it comes here, now everybody is waiting for it to come here, no matter what trump says tonight, this line in the sand was at the press conference yesterday afternoon, right clearly hes going to say, everything is fine were doing a great job. The coronavirus is great for us, matter of fact thats not true, right its a question of when it hits here i think there is more downside to market than upside. And also going back to sanders if you recall back to trumps election, everybody was saying for the longest time, he stands no chance. He stands no chance. Now theres a haunting suspicion that maybe bernie does stand a chance thats why he cant go all in yet either. Hold your thought i need to hear from you, serat i havent yet. Depending on the individual holding, its got 20, 30 cash take a little bit of it, buy the highquality companies youre right we can sit here, steve, and cry and say this is going to go down 30 . At some point it will come back. Pick the high qualities. I like nibbling in disney. I like Morgan Stanley with a great Balance Sheet and Dividend Growth and even cvs at nine times earnings yes, at the end of the day these are good, highquality companies and i want to start owning them. If youre 100 invested dont go in margin. Thats the first stock, cvs. Its 64. What if stocks have another 5 downside . Still okay to go in and buy those quality names today . Still okay. If you put a chart up over 20, 10 years its a rounding error if you look at where youre going to be. Thats what im looking at thats the objective of the client if its a client that wants principle protection, doesnt want downside risk, you dont go in right now you say 20, 30 of my Balance Sheet in cash . Yes, start putting it to work. I would like to see a big woosh when it comes to volatility index with we closed 28. Here we are in the 26, 27 area we normally, judge, will see that big woosh where we get that push to the downside and see that spike in volatility i dont think were there quite yet. Weve had a spike. I think we see a bigger spike and then thats the opportunity. When youre buying stocks and selling that inflated volatility that youre going to get and youre going to get two or three times normal premium against that stock when youre selling calls against the stock that you buy, a cvs where you would normally get a dollar but now youre getting 3 . Thats a great opportunity. Youre about to lose all the gains, by the way, in the market russell has gone negative. We should keep up the tenyear intraday for the entire day. Why dont we have that as a remember we had bitcoin why not do that . There it is. Good luck also says by the way, are yields at a new low they are in the 30year, which has been at a record low we know that thats about it. Tenyear bund yield is 20 basis higher points than last summer u. S. Treasury yield did not go to a low today the tenyear treasury note matched its tenyield but bund did not. I certainly believe Corporate Bond yields and particularly junk bond yields have seen their lows for the cycle if youre suggesting the tenyear may not be at its low youll have a hard time getting traction. Im uncomfortable. I agree with him on everything, scott. What do i do you it el me. Me smoke him pieeace pipe. Always respect fful person. 2018 the junk bond market completely dried up. Nobody issued a junk bond at all and we were fearful that trade was going to lead to an implosion of the Global Economy and we were fearful that the fed was going to be raising Interest Rates and we saw a 20 collapse in the stock market, like in a heartbeat and then corrections are great if you can call the top but you also have to call the bottom and coming out of christmas 2019, the market just went straight up. Christmas eve. Yeah. Youve had 37 corrections, 10 or worse since 1950. One every seven, eight years youve had a few of those, one 20 . Recently weve seen the 10 corrections virtually every year, right, over the last four, five years sure. Were not in different positions. You have a different client base so you cant be keeping a diary of these corrections and ive been calling them panic attacks some of them have been two days and werent all that big of a deal let me ask you this question. Sorry. 66 of them, including the coronavirus, 66. This one, i will admit, is the scariest of them all because we all realize that Interest Rates dropping is not going to fix the problem. The fed is not going to fix this problem. Its not going to make it go away. When were talking about an environment to begin with, gang, where whats been the pillar of this whole thing from an economic standpoint . The consumer manufacturing has been weak, is still weak when do we think thats going to turn around . This whole thing hinges on the consumer you start to get headlines here. Thats my concern. Not to be an alarmist its just raising the issue, if you do start to get a more serious situation here, that directly thats what the bond market is still going to tjx but not going to lowes. Were not going anywhere. But we are. We are still shopping. When the virus hits, thats the question. Its not a zombie apocalypse. Youre treating it like tas zombie apocalypse. Thats what happened in the previous one, sars. But it was temporary. You wind up having a tremendous Consumer Spending boom because everybody is stockpiling when they dont really have to because amazon has already stockpiled for you. You worry that they cant deliver amazon. Are they going to sneeze all over your box, leave it on your door and youre going to touch it immediately i have a mask. I dont. 3m, i have 12 boxes because i pressed the wrong button. I want to play this on the other side, too. I know this is maybe part of your thinking, that the flip side of the negativity is that fed, fed, fed, lk which hadity, liquidity. The world is soaking in it thats not going to change any time soon. Gunlok says another pivot will be coming soon, particularly if commodity prices, oil in particular, continue their recent weakness. Oil is just when you look at the sevenyear, still at 50 theres a secular decline of stocks because of the fact that the younger investors think that they are coal. The guest this morning on squawk poopood est thats what the older people do but not what the younger people do. Look at their holdings and see how green they really are. I love Warren Buffett i know hes going to hate this cover your ears, warren. If you did buy monday, it was a lousy time to buy. He did say there are times that are better than others i think it is our responsibility to be able to say to people, look, what beats it . Maybe you could buy some things but we have a responsibility to tell people, look, when that person lands, starts to cluster, i dont know where the cluster is if someone dies like you had ebola, youll get a really great chance to buy but you wont think of it, because its all going to be very solemn, as we should be. Let me ask this question. Undoubtedly well see worse announcements than united that said the First Quarter is good. Then mastercard. Mastercard. A wall weve made to scroll through the dozens and dozens of properties that have already told you that and the dozens and dozens more that are going to follow the uniteds and mastercards and everything else. You have to be prepared for that. Right i was talking to one company yesterday. They do about 680 million in revenues per year. They already took 50 million off the revenue number thats a big number. Its a tech company. Its in the supply chain so if you buy now, dont you think theres a real chance that you discount this twice, that when Companies ReportFirst Quarter and they look into second quarter, if this doesnt end, that youre pushing forward, this market was built 19 times forward earnings, First Time Since 2002 it did that based upon growth return, based upon earnings return, based upon europe returning if none that have happens this year, where should the market be youre presuming it doesnt end. Lets presume it does end and in the quarterly calls revenues are down 50 million, whatever it is, but now we moved on, have visibility, have pentup demand. You mentioned supply chain when i was jumping out of my seat before, what i think the real problem with highlighting milan was, i dont think its emotional. I dont think it was such a beautiful airport and it could happen anywhere. I think were seeing the brittleness of the Global Supply chain and milan is like the 18th biggest Industrial Hub in the world and i think thats whats scarier than oh, it could come here youre talking about supply chains, i think well look back on this in five years and its giving the world a wakeup call that we have a problem with this brittle supply chain were resilient. Its going to be stronger, better off, have more flexibility in five years and were going to look back and barely remember, what was that again that happened in 2020 dpen right, right, coronavirus. So much focused in china, so much focus here. You say we need diversification. Right. Pharmaceutical, holy cow. Theres isnt a pharmaciy in the world that wouldnt tell you if this keeps up, well have shortages. 48 of the Major Companies are in wuhan. I saw the look on your face, jim, as i was reading this long list of brand names throughout tech and elsewhere that have come down, either correction or bear or in some cases even uglier than that are none of those names on this list, some of these large cap names, is it too early to buy those . No. I think you can get in on those. I agree. Microsoft that was way, way too strong. And i think its too rapid what is it, 160 . I think 160, low 160s, a more palatable pe than it was it was starting to stretch. It was almost tesla like at the top. You mean the move up was too i was surprised it traded with that kind of allure the momentum they had. I understand nvidia trading momentum. Fang and then it became faang. One of the names on my list is disney which is down i think disney is fine. You talked about if you have this negative, then negative at this point, were thinking that that guy is he seemed like bob irish not going anywhere disney plus sits well in this environment. I dont know what are you going to start . If youre going to buy disney, why not start here lets say our viewers went out of 500 share position. Is it reasonable how about 100 shares i am adding to yeah. I think thats the highquality company with cash flow and, yes, one or two quarters could be low. Youve got streaming, content. They dont have to reproduce the wheel all the time we know the theme parks shocker, the theme park is not doing well of course not. Asian exposure, yeah, that will be impact short term hopefully. Right. In terms of that. I think it gets pulled down with momentum if im right. Last nights lows, i think, would be an area where i would circle and say i like to buy it here were getting closer. Bigger than its been no. No, its not i had some matter of fact, i took off some yesterday. I had puts in the xlp, and they exploded pretty nice for me. Spider puts exploded nice. Have to be disciplined and sell those things out. On this little bounce, did you buy some i did not. You did not i sold all mine. I havent seen as much of the b buying, jim, there actually, it seemed like a lot of aggressive positioning. Ill give you a great example today. Out of the gate in the first 15 minutes they were buying spider calls and very large sums of those calls and very expensive these were big trades by guys like ed over there that are probably positioning themselves for these kinds of moves. I wish. But i did see a lot of that were seeing that in the options world. Not quite as many puts as you would expect, judge. Its a great question. You look for that panic. Thats part of the reason why i think we still see a woosh of people on twitter and saying pete we already got t we got to 30 i dont think thats enough. I agree i bought a lot of puts on looking for cheap puts broadcomm, even though i dont own the stock, i bought microsoft. I bought a whole bunch of them but sold them this morning, mostly because they were friday expiration, some that are next friday. I think jenny got it absolutely right if you agree with her, and i do thanks. That this is not the zombie apocalypse, then trying to figure out which day that the markets down is the bottom, you do what jim has said, buy along the way. You know dr. Brilliant . Theres a guy named dr. Brilliant. I thought you were talking about he helped eradicate smallpox but he was the Creative Genius behind the movie contagion and said were not going to have a zombie apocalypse. You talked about the vicks a moment ago, spiking but not going crazy, leading you to believe were going to have another whoosh. The problem is this of the we spiked over 20, thats a no play zone unfortunately weve gone back and over and over and over in this. Once youre between 20, 25, its nowheresville the good thing is when you get above 25, things start to heat up you start to see things spike. Judge, to answer your question, where we see that thing really get up to a 38 or Something Like that in a single day, bang, we get that type of a move, i think thats when youre seeing that type of a whoosh that 30 yesterday didnt feel like the whoosh to me. Maybe im wrong. Thats unbelievable when youre thinking that and youve got two days backtoback, the biggest twoday point decline ever for the dow right . Were coming off 1 trillion wiped out like that. We started the year in the low 12s. Were trading at 26. A week and a half ago we were trading in the 13s and 14s weve been slowly chopping a little bit now weve had a little acceleration i think we can get a little more acceleration. 1987 we were down 20 in one day. Convert that to today. To that drop. Right as my partner at work always reminds me, talk in percentages, not points. Of course. I know. All the context, you literally have when were there three Straight Days of more than 3 . The depression. 1931. Unbelievable quarter hoover was president quiz. 6 for a lot of people is not 6 its 7, 8, 9 in their portfolios with everybody owning the best name. You probably had some unbelievable performance because of your portfolio. I wesh i could say thats true. Thats where you should have not responded. I should have said you bet you did. Im painfully honest. Why dont you stay with us, if you have the time just stay with us. Well take a quick break. Why come back. This is a special show. Thats why we went over, almost 32 minutes. You now have to have more commercials. Announcer nike shares in correction and getting a downgrade today. Well go around the desk on that stock, plus the retail space amid the volatility in our call of the day plus jim cramer and the Investment Committee are ready to answer your questions in ask halftime cnbc. Com halftime or tweet us. Halftime report with scott wapner and the traders is back in two minutes at fidelity, online u. S. Stocks and etfs are commissionfree. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk while our competition continues to talk. Shouldnt you pay less when ynow you can. Data . Because Xfinity Mobile gives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 300 off when you buy a new Samsung Galaxy s20 ultra. Thats simple. Easy. Awesome. Call, click or visit a store today. Welcome back, everybody. Im sue herera South Carolina democratic representative, james clyburn, highest ranking black member of congress, says he is backing biden for president. This, just three days before South Carolinas primary. I know joe. We know joe. But most importantly, joe knows us. Placido domigo issuing an apology for acting inprouptly with dozens of women throughout his career, after findings are to be released from Sexual Harassment by domingo. Limiting the amount of nicotine in cigarettes, experts have addressed concern that people would just smoke more two new studies suggest that they would not thats the update. Back to you. Meantime, apple is meeting with shareholders this hour. Josh lipton joins us live at the event in cupertino with the latest josh we are live here at the apple headquarters in cupertino. The nominees to apples board, there was seven of them, they are approved james bell, tim cook, al gore, andrea joan, rod sugar and sue executive compensation approved and shareholder proposals not approved as the board recommended. Tim cook taking the stage. Questions he yields from shareholders, does he get any more color or insight about the coronavirus outbreak how its impacting stores and factories. We do know those stores in Mainland China are gradually coming back online, 29 of the 32 back open with the limited hours. Big question when those factories in china, when do they reopen at full capacity . Enormous implications, obviously, for iphone production in a Way Investors are excited about, like the lowcost iphone and 5g iphone. Well see if tim cook gets into any of that. If he does, of course, well bring you those headlines. Back to you. Apple was on my list. Right. Of correction collection stocks down 10 . Stocks up 295. Look, i think its a decent place to start six to seven factories, not his but these other factories are starting to come back online maybe theyre trying to come back with a compromise that they know more people will get sek if they come back to work but they want to come back to work. Thats very good for apple apple is a decent one to start i like it here i understand if the charts are saying bad things but you have to start somewhere with apple. Yeah . Yeah. Talk a look at sky works, big supplier that stock is down again today its now to the point that we have to do the math. Where is macys getting its clothing at its private label, target, skyworks i hate to do that. Its so ranular. Thats where it is, though. Its granular. Start talking coronavirus. As do their path. Whoa Morgan Stanley would be the no duh headline of the day coronavirus, talking about retail coronavirus, impact could be more severe than initially expected. Amazon. You cant be more i do that stuff. That curse, see how it works. It feels good when you do that, right . We should talk nike nike downgrade. Talk to me. It was fine if it was just china but if western europe takes a hit youre left with the united states. This is a new ceo. Im sure hes up to the challenge but holy cow, nike has been hanging in there by people who think its inbearable. You said this morning, i wrote it down see, i told you i listen to everything you say on that show this will be the correct one, maybe in the 80s. Its not the 80s. You dont buy it here is your point. Cancel the listenics, thats pretty bad. Seriously, though, not yet . Reporter no, not yet i just dont think i think theres too much enthusiasm for nike people feel no matter what, it has the right portfolio. You feel it got pretty stretched, too, though it ran up there. Ran up there so fast, pe levels became intolerable. Then theres an opportunity. You said 80s. People feel the ministry of sports, chinese whatever. I think nike is tough you have both supply chain issues there and 38 of their ebit coming from china thats going to be really hard seems high. 30 times earnings as well. The Vaccine Company mederma i bought it as soon as the announcement hit the tape, i just bought some, not a lot. I added to it, actually. Ive met them a couple of times. Ive had them on a couple of times. Theyre very smart people. They use Amazon Web Services way to do all the permutations dr. Fauci said they have something, theyre going to fast track how its done. The question i have is will remember, we had the tuskghee airman case where we specifically gave people something. They couldnt get the test base from china. Interesting, wasnt it . I thought that was counterintuitive given the fact that i dont think chai china has a very Similar Health care system they have a not Great Public Health care system, not like retail, scott. I was going to say, i didnt have us making such a quick pivot from nike to moderna. Im trying to cover everything here. Does anyone know modena . Lamborghini, that restaurant there, cheese capital of the world. Im surprised you havent been there. I wish i had. I got to see it. Met them recently, though, highlight. Volatility, stick around for petes two new trades and unusual activity coming up next. As a reminder, watch or listen to us live on the go on the cnbc app. Were back after this. So you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. Yes im stuck in the middle with you, no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its the most open and secure public cloud for business. It can manage all your apps and data from anywhere. So it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. Without getting in your way. . Take the personal assessment i love the new myww program, because its tailored to you and get matched with a proven weight loss plan. Find out which customized plan can make losing weight easier for you myww join for free and get three months free stay two nights and get a free night for your next stay. One night, two nights, free night. Book now at bestwestern. Com. Im kelly evans. One Economist Says the coronavirus is quickly becoming an economic pandemic and it couldnt come at a worse time. Shell tell us why ahead. Handing out cash to relying on Central Banks to step in. Live in the port at long beach with the situation there and what could be coming for this country all that and more ahead at the top of the hour. Well see you then, scott. Back to you. Small cap stocks have fallen more than 6 this week, but bullish options traders are buying the dip so says Pete Najarian at the telestrator. Pete we dont talk about this one a lot in terms of unusual options activity buying a little bit of time, o too, jimmy theyre going out to april and theyre going right on top of where it is now. And they bought 11,000 of these. I talked about the spider calls being bought puts calls look at this 11,000, 9. 20 it is an expensive, going into this, expecting over time. Lets not forget youre getting time with april. Could this actually react to the upside i think you have to spread it off. These are very expensive options. Implied volatility is higher youre paying more you have to spread that off, sell a higher stake against that im positioned in april. What do you think about the russell right here i think it is, as you lets use something that was said on the Conference Call with tesla. Its a biological risis. Weve had financial crises and then bilical crises and they will end if its the right timeframe, home run i think you have to try something lick this. People at home recognize the way you brought in extra income make it so the risk isnt so great. I like that. Reduce the risk out. If the crisis isnt over by then youll say why did i do that with this kind of decline, i dont think this is a starter position for me. I like it. I like it. Because its down big and youve got to start somewhere. Nibbling at something. Right. We talked about nibbling a little bit oracle is my next one. So oracle is pretty interesting stock, trading virtually right where it is right now. It was up a little bit already theyre buying, jimmy, in a big way. 35,000 of the march 57 calls being bought today thats a big number. Okay, okay. Its even more now. Those were 30 cents, way out of the money in a fairly short timeframe. What do you think of these this is fitting in with where earnings is coming out as well. This is going up because people feel oracle, fabulous job had sales force, is going to run and katz steps down. Right. This block is money heath block is money fabulous guy also. People are judging thats what hes going to do i dont know fabulous, fabulous it would be fantastic. Block goes there. Does that change, by the way, your thoughts on sales force, benhioff no, no. He loves it. Keith loves it its all good. Wait a second, people say, theyre sworn opponents. Larry ellison is the mentor of mark that is not so bad some people are saying workday i dont know where that company is going to report whoever gets keith block wins. Hes a winner. Theyre betting hes going here im betting that. Wouldnt it be funny if that would be something you wouldnt own oracle if keith block didnt go there for certain. Come iing up, well answer y questions next on delta, activision, blizzard, marriott and more nexonthha. 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And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk all right. Welcome back we are answering your questions now. First up goes to steve weiss robert in pennsylvania, is it time to start buying reits that started a long time ago. Those are up bond proxys done incredibly well realty adc if bonds go down, yes. The valuations are very stretched so you need a view on the bond market and on that youre on your own i dont think rates move higher. The valuation and yields arent there. I would only buy the tower companies. I dont count castle. Okay. Reit no go. No. Absolutely right. Jenny, to you from drew in new jersey, is it too early to start buy marriott no. It isnt . They have 68 of the hotel rooms in the u. S a huge pipeline trading at a market multiple and announcing tonight. Jim almost fell over on that one. I have no idea. Remember when they bought drew in new jersey could see jims face as he answered that question. So distracting. Could be the right day to double zero. Travel stock is gutty. I dont like southwest and theyre so good. I sold most of my scott wants to know about delta. So this is off 20 from the peak in early january. If you want to start adding to it, add very little. Theres more downside with more bad news the e is anyones guess. I would wait i think you get a better opportunity. Jimmy, buy or sell act vision blizzard just sold it yesterday. Felt like we had to. Its run a lot theyre vulnerable stocks. I wish i have no real edge beyond the stuff that gives it a going up fast. Okay. Glen in los angeles with a gunlachian question if you will. Why are Health Care Stocks down too . People are selling whatever worked merck had a run to the upside. I still like gilead and merck. Well come back and jim will tell you whens coming up at 6 00 tonight and the final trades next. 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Thats simple. Easy. Awesome. Call, click or visit a store today. Jim, been good having you here. Well we have the president tonight at 6 00. Not always on time so who knows what will happen for you tonight but you have great guests lined up. Doug yearley, Toll Brothers missed hb and mike cannon, out of sneakers atlassian. There is no i in team. But you heard the kobe quote. There is a me. There is me. That was you got to love shaq. That was really well delivered. Cant say what else he said. Been great having you here, as well. Thank you. Give me a final thought if you can, please. We clearly have several more days of testing the whether this is just a panic attack or something more significant i believe that we are going to see the news turn somewhat more positive on this virus and if thats the case i look for the market to make a bottom. We could have another one of the weeks where fridays everybody decides to not hang around until monday and not rushing here. But i did think that wed have a correction, market had a 19 multiple now 17 1 2 could get to 16. And then i think the opportunities are there. Okay. Again, thank you for being here. Thank you thank you for sticking around. Steve . This is not a trade for a few days be in cash three to month, boeing f 5a said theyre going to say its approving to fly and drive the stock much higher. Jpmorgan. Highest quality bank i like out there. Almost a 3 dividend yield good earnings meeting yesterday. Jenny i am so happy to report that b g foods and i love this company. 12. 5 . Shocked when i saw 13 and missed the quarter and they didnt well done. Well played. I know. Jim something that steve took the puts off broadcom. Buy signal . I like this. No, no, no. The open the travel trust i would never do that to you. Pete, what do you have . For it, real quick, tjx and the reason with jimmy here, did you see the same store sales . Holy smokes 6 , yeah this things going to rock n roll final trade is pfizer. I saw some car buying. I like it. The exchange begins now. Thank you, scott hi, everybody. Welcome to the exchange. Heres whats ahead. Collapsein yields wiped out a big rally. Coronavirus spreads to new places and the fda sounds the alarm about a possible pandemic. The cdc says worry and be ready. The white house says its contained and under control. The administration is facing criticism on the mix messages on the coronavirus. We hear from a biggest port in the country, a bank ceo saying things are slowing and how hong kong is handing out