Record highs were only ten days ago. I continue the watch bond yields as yields sink so do stocks. As yields come off their lows stocks follow. What are you watching. When you look at internals, technicals, he is with aed on every measure of being shortterm oversold we had already checked those boxing going into today then today thing got worse it was a lesson for investors and traders that oversold doesnt mean the coast is clear. You can always get more oversold what is interesting right now, the s p at its low today down more than 10 . In five days thats only happened four times in history, 2011, 2015, and during the. Com bubble and burst and during the great financial crisis this is very extreme activity. On that point, to your point, bespoke today points out, to understand the magnitude of the drop and the swiftness in which we have seen it if the s p 500 today closes below 3,547. 53 today, tomorrow, or monday, it will be the fastest 10 decline from the alltime high from the s p 500s history. Yeah, it never happened before unprecedented things happen all the time heres what is interesting stocks are going up. Netflix got itself green unbelievable. Marriott is green. Yeah, i also look at all country world index sus, the etf to track that index is acwx. The s p might be down 10 ores tefr the last days about the rest of the world is down 7 i know it doesnt make people feel better but it is interesting that International Stocks which were not at record highs and were not doing well all year fell less the most overbought, the most expensive assets came down the hardest. Xx Energy Stocks last thing, energy might have put in a capitulation low. Energy down 15 in just a couple of days. Extraordinary activity in an industry bankruptcy, in a sector already 40 or 50 from its highs. That looks capitulationlike i would throw transports into that category. Down massively after already having been down i am looking at those things, looking at zoom which i own up 9 new high post ipo. Tella dock, which well talk about later. People are looking for opportunities in this tape despite the carnage. I find that interesting. Erin, we have destroyed 3,000 dow points points dont tell the story. It is a percentage game, nonetheless helps tell the story of the destruction we have seen. We havent heard from you in while. I am watching the vix, the credit spreads and oil prices w. Respect to the vix we have reached 30 thats an important level for the manage ball sellers. Above that level there is 30 million in supply they need the sell in addition you have the trend followers who have another 30 billion of supply to sell. You know, the higher we move on vix the more you are going to see the systematic guys kicking in exactly to joshs point, despite the fact that we are breaching all of these levels in terms of technicals we still have more downside to come we need to see the vix stabilize to see the systematic guys stabilize. The c, thes were all on same trade. Exactly. They all have the same trade to do. Thats not great for them but great if you are going the other way. The higher the vix moves the more you have to sell, a virtual circle. Jon, your brother pete was asking about the vix i asked him which level it would have to reach to give him the feeling that we have had maximum pain and that the bulk of the mass selling was down. He threw out a number like 38. We are above 30 today. What are you thinking today . I agree we needed that kind of cathartic flush where you take folks out because i was on the floor monday and tuesday this week, scott, during some of the biggest selling pressures that hit the markets. As that happened, talking to the traders in the s p 500 and their clients i wasnt talking to the clients. They were. But they said they werent covering they were doubling down on a lot of the insurance, if you will. So s p, thats insurance the vix, of course moves inverse to the s p that could be viewed as insurance when buying calls. Instead of buying those back, scott, they were doubling down they were selling ratio spreads in big numbers and so for instance last two weeks ago i think, or a week and a half ago i talked about the 50 cent trader. He made 38 million on monday alone than that woosh as we carried monday into tuesday. He was big upside calls at the march 24 strike for 50 cents or less than that and they went much, much, higher now, of course, as pete said w the vix pushing through 30, obviously, many of these folks are being forced to cover. Thats one of those things that you want to see when you are looking for a signal just like erin was talking and josh was talking you are looking for that kind of signal where you get an exhaustion where people just throw in the towel now maybe that happened to some extent today, scott. Some of the turnarounds you cited already, marriott, booking. Com, these were both down so hard and both went green. In fact, booking turned over 100, 1600 stock, but knowledge from 1612 up to 1713 thats a huge move. No doubt. Especially for a sector that most of us would say, well, hospitality . Traveling . Are you really thinking this is where you want to buy it a lot of people were. Wall street is publishing a lot of notes lets bring in the head of equity strategy at jp morgan he published today he is with us all the time good to have you back, due bravco you have taken your earnings numbers down, rightfully but you kept your price target for the year on the s p intact how does that mesh earnings target is down from 180 to 174 to take into account the impact from the virus in the short and paid yum term as well as the delay of the benefit we were supposed to get from the phase one trade deal we are also seeing a significant portion of this hit will eventually get recovered in the second half and beyond so there will be a back loading effect. On top of that is coronavirus is triggering governments and local banks to inject stimulus ultimately when that pandemic call it finally fades off the stimulus will still remain this place and i think that could result in hotter economy than we had going into the virus thats why i think that, yes, there is definitely shortterm weakness we had a big flush in terms of positioning but medium to longer term we are not changing our view and holding on to our price target. Thats a gutsy call with so much uncertainty i am wondering how you are going to be able to do that goldman comes out and says you are going to get no Earnings Growth we were counting on it it is why the stock market was where it was we had all this multiple expansion and thissier he had Earnings Growth. You take that away we could be set up for a real disappointment. I think thats a little bit too pessimistic wiping out all of the Earnings Growth for s p you have parts of the s p definite low exposed to china and the virus. But a significant portion is not. There could be some indirect hits but broadly speaking we should be able to weather it the other thing i want to mepg is we have had huge amplification in terms of price action to the downside basically a large flush where we estimate 200 billion worth of outflows most of that is now behind us. We were at 0 in terms of equity positioning. We are now 30th. I think a lot of the selling pressure also starred to ease in the coming days, if not already now. Yeah. Mike santoli, you do have what you could say are a number of, quote, unquote, oversold sectors. Three quarters of the s p was at least looking oversold if you Ruth Bader Ginsburg at rsi and things like that. Yeah. What are you looking at to try to tell folks whether you think we have bottomed or not. First of all on a shortterm basis this morning was a plausible place where the intensity in the selling should have stopped because of the mecke thickcal factors people are talking about. 3,000 roughly on the s p 500, 1. 25 on the ten year if you were right, if you caught that move thats where you would salem declare victory for a while. Yes, you want to see the stuff that was hit worst and first maybe stabilize. We have started to see Something Like that. I dont think this is it is not gb requesting to be moment it is not going to be a one day turn it is going to be one low, stages of further selling. We are going to have numbers come down. I think the other thing josh mentioned the rest of the world versus the u. S well, the u. S. Spent december and january building a massive premium in the mega cap Growth Stocks that has now just started to unspool you have apple go from 280 to 33 on nothing in a monday and change back to 280. Microsoft, it is not bullet proochlt it was the universal long for everybody now back to earth a little bit, but back to trend. Right . I think all that stuff is underway weight, we dont have valuation support. Not outright but if the treasury yield stops making new lows then low rates become your friend because it lowers the hurdle rate. It all happens when the market was at alltime highs it was ripe for something. It is not like there was middling around in the stock market, and then this hits and it makes people uneasy you had, as mike said a lot of is to, that had run up an awful lot. Priced for perfection or whatever but the stock market seemed ripe at that moment for Something Like this to hit it hard. Yes, i mean look going into this positioning was elevated. No questions about it. Then you have bask kilothis headline risk coming from the coronavirus. China initially, then europe, now some envision it hitting the u. S. Coupled with that, we have seen rising odds of a potential progressive candidate going into super tuesday. I think when you couple both of those with elevated positioning and the systematic selling i was talking about yes you do get a big move in the market in a relatively short period of time. Right now i would be looking at when do you buy this dip due bravco i know you have got to run we appreciate you being with us. Brenda, what are you watching today. I think for longer term investors we need to be careful not to get wrapped up in panic and to really look at take a step back and look at what is happening here you know, i think it is a good thing to have a goldman come out and say there is no Earnings Growth this year whether it is true or not, init is good to have that out there as a barometer i think for longer term investors we need to be able to look past the emotion this Market Correction and look at the opportunity that it could be providing. Lets talk about a name like microsoft. It seems to be the name of the day. Mike santoli is talking about it cramer talked about it this morning, that it went up a little bit too much. That it was priced for perfection now it has gotten hit. Oneof the first big name marquee stocks to get hit. He said he would buy a little here. It is not down enough over the last two days i have been getting hit on buy limits i talk about this strategy whenever we are in a correction. I have buy limits, good until canceled at ludicrously lo prices on names that i own that i want to own more lower or new names. They were going off like fireworks. Uber disney came close. Maybe next week. This is the way that i like to buy stocks but those levels are 20 plus from recent highs. Hit on shake shack yesterday and today. This is a strategy that relatively passive individuals at home could use. It is not quite what an institution would do but with someones own money their names that are down i think the median stock right now is down about 13 from its high. The average s p 500 name is down about 16 or 17 from its high that sounds cheap but we have actually seen way worse in prior corrections. So that is the way that i would approach this market if i were watching from home and wondering, is there something pro active that i can do that is the opposite of panic . Is there one smart thing to to that is a smart thing to to. In the case of microsoft you are not quite there yet. I want say microsoft is a fire sale i think it is still up on the year or up since thanksgiving. The major averages are now out of correction. We are about 600 we are 600 at least points off the lows mike santoli you watched that sort of intraday action all the time for messages of what the Bigger Picture would look like thats one hell of a prove. Shortterm selling exhaustion we got the huge acceleration whatever needed to be mopped up with the Systematic Strategies maybe it worked its way through a little bit but i think that you really have to be very sort of humble about trying to make declarations about what any move the scales have been widened out. It is like january and february of 2018. From an alltime high, very, very fast correction it wasnt over once clicked to 10 or 12 . You had to shop around the good news it is not the way long lasting bear markets gwynn. Maybe thats of some comfort. The ten year is now at 131. We have maintained for days now. Keep your eye on bond yields if you want to try to understand where stocks are going to go you had a ten year today down at 124. Look at that rally in the tenyear note yield. I am going to guarantee you it probably matches up with the rally today in the s p 500, off of its lows. Now, maybe i dont know maybe some people think the fed is going to come to the rescue in some way. You have got rebalance. Even if nothing else, whether it is planned rebalancing out of bonds that have worked so well into stocks. A lot of managers are doing opportunistic rebalances they have tolerance bands. When the fixed income component gets to a certain size it doesnt matter that it is not the first of the year or june 1st. You are 100 right you will see that. Jeff gun lock was talking about this earlier in the week, the virus is only on surface story what is really happening is Bernie Sanders racking up delegates. He said that to me yesterday. I dont think it is an either orrin in. I think the two stories are linked meaning the virus seems to be the first thing that after since the trade war, can do this to the markets and we all agree trumps biggest vulnerability is if the economic story falls apart. Thats the pest thing on his record if this virus leads to a global depression and keeps stocks pressed into the summer it is a bernie story because all of a sudden trump cant point to the stock market and keep independents in the fold. Unless you want to indicate that the stock overreacted to the virus and overreacted to sanders. Biden may very well win South Carolina polling i looked at shes that biden may win florida in terms of super tuesday. Florida is an insane state. I wouldnt bet on that. Doesnt matter. Maybe you get a cool off from the sanders panic. Who knows what is going to happen with virus but maybe you get a cooloff from the virus panic. Rates have nallen 60 base i points you have a 30 year Mortgage Rate at 3. 6 . Oil prices declined 23 year the day. Thats a Good Environment for the u. S. Consumer. Once some of the stuff settles, once some of the val tilt sub sides we are walking into an environment where financial positions havent tightened. The market is pricing in the fed loosening two more tiles this year Mortgage Rates are low, oil prices are low and affordable for home purchases and Consumer Spending is high it is a decent environment. We have Steve Leishman at headquarters, our senior economics reporter with us to erins point, rates 75 i rch ma, another one in april, another one in july. Yellen saying the virus could throw us into recession. One of those in line to be the next fed chairman writes about it another said you need a khouw coordinated action, whether action or a statement. What are you hearing from your sources . First, scott, i want to convict you a little bit but for a real reason here which is right now those percentages you just had up which i gave you guys earlier are now down they are done by ten points. 73 is now 64 the reason i bring that up is because i think thats one of the things that stays the feds hand from acting prince too precipitously. I think i wants the see thing settle down. It does not want to go into the next meeting misaligned with the market, but where exactly the market will be going into that meeting is yet to be figured out. I will tell you that right now you are correct though in the important sense which is that suddenly n the last two days the market is now pricing in a rate cut in the near month. Thats the most important month to watch what i expect i expect powell to Say Something over the next couple weeks i dont think he can remain quiet in the face of this volatility, in the face of this change in the Market Outlook for the upcoming meeting so i think thats something thats not from inside knowledge, but would make sense for the fed to step forward and say heres what we are thinking. Because the last message the fed had, scott, way, hey, we are watching, we are monitoring, we dont see the change we dont see the change in the outlook that would cause us here to change our prediction and we are going to remain on hold. I think changes are changing rapidly now. Which reminds me painfully of what you could see was theed if being late to recognize and realize the true impact of the trade war. Because they were making the same sorts of statements at the beginning of that as the rest of us were looking and listening to companies and hearing things that were saying wait a minute, you know, they are going to be terribly behind the curve if they wait until it gets really really bad maybe there is something to the calls by walsh and delara that they should act preeveritively rather than wait until it gets too bad. I with what you are saying. But josh brown was pointing out that eight days ago we were at or near a nasdaq alltime high similar to the way things changed in september of 2018 then ask yourself the question, how much do you want your Federal Reserve or your central bank to be a read sort of bending in the wind . I think there is something to say for taking your time when you are going to change monetary policy, which has this long lead time, and uncertain effect, to wait and see where thing are going. An immediate drop in the market of 7 , not sure thats enough. I do i dont know this for a fact i would guess, having cuffed this beat for Something Like 20 years that federal officials Central Bank Officials around the world are probably talking about whether or not a coordinated action makes sense i dont know that for a fact but it is something that i have seen them do in the past yeah, you can expect some kind of response from the Federal Reserve if things remain the way they are are they behind the curve . History will june that. The s p fell in 2014 7 on ebola panic. It turns out like we got our arm around it and contained it this looks like it is more out of control and it is early, too, for us to have opinion about how far the contagion spreads. The fed was not called upon to react to ebola and didnt show sign that they were considering to i think that shows how far we have come in terms of turning to the fed every time thing go wrong. It is not going to make people get on a cruise ship if we have a coordinated financial response around the world and financial conditions will not tighten. It hasnt happened. Go ahead. I think josh makes a good point. The problem is twofold one in supply in china Federal Reserve rate cuts dont chaepg that issue of supply and bring it back over it doesnt create a vaccine. Also doesnt create Risk Appetite for consumer demand i am sorry if this is a joke but you done sayy lets go out to dinner now because Interest Rates are lower and that Interest Rate cut offsets the risk of getting a veers by going out and fulfilling that demand those things dont work. This is a different situation. I will make the argument that if rates fall if investment falls to the point where the neutral rate is lower and the fed is tight, in that sense it makes sense to bring it down what josh just talked about, 100 correct, if financial conditions teethen thats the key there. The other thing, the difference being ebola didnt crip teleworlds second largest economy in the way that this absolutely cripeed china. Because it started in africa. Yeah. It didnt cripple china or the second largest economy. Hold on swine flu originated in north america. So and 17,000 deaths versus the 2700 so far with this. I think the margaret didnt seizan that story because the s p had already been cut in hoff by 2009 when h 1 n 1, was sweeping the headlines away from wall street. This is something in china i would argue it is you cant really compare every epidemic. I am talking about the fetd really not being able to do much at this stage in the game. I hear you. I am not suggesting that a rate cut solves all problems but some are suggesting that a coordinated statement might ease the concerns that global central bankers are on the case knowledge. Our next guest argued that a rate cut wont do anything Richard Fisher joins us now. The former dallas fed president is on the phone. Delara said something needs to happen on a coordinated basis. Janet yellen saying you to have a recession. Walsh saying the time has hom in an op ed, what do you say today. With regard to kevin, there is an audience of one for that op ed. That is the president of the United States. I think he is looking to possibly be the next chair when mr. Powell is not reappointed in 2022 i understand his perspective. Is he right i know why you have said that. You said that before is he right. I have tremendous regard to delara and for janet rates dropped across the eeld curve. This is what drives businesses gives them confidence in terms of having act dietive fixed income markets to give them debt every ceo i know are taking advantage of this in one way or another. As far as having the incentive to borrow and even engage in cap exit is increase not decreased with the fixed income market movements. Secondly if you look across the commodity spectrum, everything but soy beans is down and has been down. That indicates there might be some weaknesses. You have to understand thats a Global Market and of course it is affected by china and whatever hints of recession may be coming in germany and elsewhere and australia and so on but the question is, what will it do for real operating businesses that are the job makers and creators in america thats one question. Is it worth moving on fed funds again when rates have come down across the yield curve and the cost of business barring and access to credit is still very high and in fact is improved the second thing that one has to consider is does the fed want to have a put every time the market gets nervous as steve and lisa pointed out, we are just off alltime highs does it make sense for the fed to bail the markets out every single time . It creates a trap. How can you bail them out every time and then not, when the markets may need it most the question, need it most. Coming off of yule time highs. It is a question i have. Heres the rules i know. If you are in a hole, stop digging. The fed created this depend endsy. There is an entire generation i go to meetings with all of these Money Managers a generation of managers that werent around in 74, 87, the end of the 90s or in 2007, 2008, 2009, they havent been around of course they are nervous money is already cheap and abundant. But, richard, if the world is being starved, so to speak, because the supply chain cutoff in china, and the chinese economy the second largest on planet earth, is shut down for an extended period of time i dont care frankly what the government in china says if you look at the real information coming out of china and some charts i am going to show in a second, it would suggest that things are pretty much cut off completely in china. I agree with that it is not just china it impacts japan it impacts singapore it impacts korea it impacts taiwan. All of asia is hemorrhaging because of this. Italy and germany. Germany as well italy as well. Not because of the virus but these are big markets. China is the biggest market of all. I think it is up to the Chinese Government which has much more control than we do in our society to do something about this and they will. The same is true for the other governments. The question is, does the central bank of the United States cut rates here . And i think it is a debatable question thats my point. I will not saying i am against it i think the market is getting ahead of itself because the market is dependent on fed la e larg larges i was part of undertaking. I think we have to consider whether you want to continue to feed the margaret in this way or is there a nicer way say through a statement rather than action to wean the market from the tendency on a fed put . By the way, i should mention thanks to my colleague becky quick for reaching out they have kevin walsh on squawk tomorrow morning thats going to be interesting we want to listen to this to hear his perspective on why he thinks the time has come dont miss this on squawk box tomorrow morning i would like to listen to it. I will be on a flight to australia. Well, we will make sure you get the headlines. You are a brave man, i suppose for getting on an airplane and traveling such a far distance. I will have my m95 mask on we will talk to you soon. I referenced these charts that you want to he show you, if for no other reason than some very Large Hedge Fund managers are looking at this kind of thing when deciding how bad they think it could legitimately get. This is a chart of beijing real time traffic from tom tom. And it shows you the white lines there are the natural amount of activity the red line is the actual so you look, say, over the weekend, and you say 8 00 a. M. , 6 00 p. M okay, maybe there was there is your normal level of traffic in beijing on friday, okay last friday of lets say 70 roads average congestion, a lot of congestion on the streets the red line is the actual which shows you literally over the weekend and even to some extent into the weekdays and then today granted it is the middle of the night in beijing but there is next to nothing happening on the streets in beijing. The i showed you a real time traffic look in shanghai and wuhan, it would show you nearly an identical picture so when you hear of Something Like sfar bucks says well 85 of its stores are now open starbucks doesnt matter a darn bit if nobody is actually going to the stores. Big money is look at charts like this when deciding how bad they think it could get with the knock on effects if a shut down china are. Look at today versus friday what is your rate of change . You are up. A little bit. I think the market is trying to figure out is it normalizing at a pace we can observe. You are seeing 315 companies of the s p 1500 indicated they are expecting some type of earnings impact to u. S. Corporate earnings from this virus, from this volatility in the market you are already starting to see it feed through, which i think is why you see goldman, jp morgan, why you have seen a number of the other brokers in the last couple of days downgrade their earnings estimates for 2020 i think the big question is, though, is it a one quarter hit, a two quarter hit or are we going to be living with it the next four quarters i think thats the uncertainty the market is grappling with. I forgot to thank Steve Leishman i wanted to thank him for sticking around with us. We are way off the lows. Dow has cut its losses by 600, if not more points some stocks look attractive to some people. Their stocks each in the hardest hit sectors turning green, marriott, booking, otherwise are there other stocks within the pockets of the correction collection as we have been calling it where say you know 65 to 70 of the s p 500 had gone into correction that are attractive enough to buy are you are you anybody up here looking to make moves today . I think you know we have a longer term focus. But i would say, you know, it is times like these that are a Good Opportunity to upgrade portfolios of individual stocks. You have your stopping list of thing you always wanted to own but they have never been within reach or attractive from a valuation pa stand point visa, the stock is down. Erased the Fourth Quarter rally it had it is a high Quality Company significant amount of recurring revenue. Is the stock going to be impacted probably but it is going to be a temporary phenomenon these are the stocks we would be looking a of the to buy. Jon najarian you are the shortest duration trader we know today. What are you looking at. Going into the first two weeks in january i trimmed massively in my portfolio. Said here right on the floor of the New York Stock Exchange on the 2nd and 3rd of january when you and i were here and was talking about how much i took off the table. Where have i recommitted some of that capital square, sq especially i love the 10 pop out of this one. They continue to perform to joshs point as far as microsoft i was out in vegas this weekend talking about folks about what would i buy, at what level . I said if you get a gift like microsoft back to 160, which it got to virtually today, yes i recommitted capital there. I think a lot of people, folks r putting capital in, the people that trade derivatives anyway, scott, i have seen a lot of speculation in the s p 500 today. First time in seven days that i have seen upside calls being bought on the s p 500. April 315s i will throw that one out at you. There was an yaufl lot of those bought today 10, 20,000 in each block that they were buying of those. So i think there are some shopping lists just like brenda said and when you get a gift like this, as far as if you really still believe in those conditions, which i do, the foot traffic, scott, just real quick i will leave with you this alternative data we see the down loads of all of these different apps and so forth. Right. You can imagine all of those apps in china are lighting up. These are like four times, five times normal traffic because of exactly that chart you showed as far as traffic patterns in beijing. Yeah because those folks arent going out as much all the apps are being downloaded virtually anything to do with watching something, whether it is with ten cent or anything else or downloading an app to get something delivered to them. Who knows, but if we close positive today thats going to be one hell of a story after being down another the pockets of the market are already turning green. You have one of the biggest sectors in the s p that just went green while jon was talk. It is the xlv. The answer is staring you right in the face. This is a sector that doesnt rely on cyclical growth. Secular growth Stories Health care is the second cheapest sector in the stock market other than energy and is very, very tiven than Energy Defensive sector, Revenue Growth is supposed to be up 10 from the Fourth Quarter this year that they are reporting now versus the year prior. You have got growth. You have got noncyclicality you have got cheap stocks, big dividends. Look pfizer, stock is up today. It is 5 of the xlv. By industry breakdown, pharmaceutical are 35 of the index, green by half a . Life science and technology. Only 7 of that industry but there are a ton of names in there. They are green you are about to see no, it happened Health Care Equipment and supplies just turned green if you are somebody who buys strength, looking for new leadership, this is the space where you will find it and there are tons of names here you dont have to crowd into just the top five pill companies. You can look at everything from equipment to hospitals, et cetera that is where i would be focused on if i were looking for sprepg and potentially new leadership. The ten year yield moved nine or ten dips today. It will in a few hours it was a shortterm overshoot. I saw some of the technicals on the yield saying you didnt have as much momentum this time as the last time you made a low right now it is trading dynamic. It is not somebody rushing in to deciding to sell all of their treasuries. You have to have some level of stabilization along the curve. Erin, you watch this stuff pretty closely, too. You have to have that until you can sort of wipe your brow and say okay maybe i can take a deep breath and grab a drink or something. Also you want the see some stabilization in oil prices, too. That feeds through to nominal Interest Rate yields seeing a stabilization in that, i think some of the opec headlines and some of the announcements that have come out of late from the pe and p companies stating her going to be ratcheting back production is helping the at least provide some stabilization from earlier in the day in oil prices thats feeding through to nominal bond yields. I think the market at this point is saying how much lower can we really go . We are already through what anyone thought was conceivable for this year, like rallied 60 basis points since the beginning of the year. I dont think people are expecting that the fed is going to cut in excess of what the market is already pricing in for me, i think that we are pretty much at the lows with respect to Interest Rate yields for now. And that should start to create some stability in equity prices as well. Yields have gone positive on the day. You do see the major averages are way off the lows in fact we are at the highs of the day there. Lets catch our breaths. Mike santoli thank you for being here great to have your insights. Doc you come back over. Yes, sir. You sit at the big kids table. We will take a quick break and we will come right back. It is a red hot stock. It is bucking this weeks selloff. It is even rally today and 20 this week. Plus send our kmerts your questions amid this weeks market turmoil we will answer them straight ahead in ask halftime. To reach us, go to cnbc. Com halftime, or tweet us the halftime with scott wapner and the traders is back in two minutes. Hi, everybody. Welcome back im sue herera heres your c flbz news update at this hour health and Human Services secretary alex azar telling a House Committee that the risk the coronavirus spreading in america remains low. He also sought to explain plans to combat that virus it is really important we correct this impression that it will require this massive hospital isolation for normal patients we are in containment mode right now to stop any further spread but once if we end up having broader spread, it will be a much more common approach. The World Health Organization saying no decision will be made soon on the Tokyo Olympic games in light of the coronavirus outbreak w. H. O. Officials say that they are working closely with olympic organizers and see no risk in Mass Gatherings at this time. Some key kobe bryant memorabilia will be auctioned in april. Julians auction house says the items include two of bryants lakers uniforms and cement happened prints from his induction in the grummans chinese theater hall of fame gallery. It is important to note that that was scheduled before the tragic accident that took his life earlier this month. Back to you. Sue, thank you we appreciate that thats sue herera. One stock that has been bucking the sul selloff trend, more than one. They are right in joshs wheel house. Zoom, zn. In zoom. Know you have been looking at the stock, i know you are in it, looking a the chart. And teledoc. Nice place to be. I have been in teledock since november i did not anticipate coronavirus. When you go through what they had to say in their Earnings Report last night you understand why it is exploding to the upside visits, virtual visits to doctors on the teledock platform, last quarter, precoronavirus, grew 44 what that is telling you is that people, once they start seeing doctors on their ipad or on the Television Screen in their living room become so comfortable with it that they do it again subscription rev also beat and their guidance was outrageously high relative to what was expected that is why the stock is doing this this thing is now double from where we started talking about it on the show i am not a seller. I am staying with it i recognize there is a lot of hot money in it and it will be more volatile but its only 10 billion on 700 billion in wretch other platforms plays sell at a much more expensive valuing a. And more importantly, the scarcity factor. There is not another competitor to teledock publicly traded. Insurance companies do their own virtual doctors visits but there is no pure play that you can say this one is cheaper than teledock so i am buying that i am not suggesting there isnt competition but this is the way that if you believe virtualization of health care, the netflixization of health care coming, which i do, this is the one, so i am sticking with it despite the fact it has doubled seasons i bought it. Some are suggesting a few weeks ago you suggested it wouldnt be a bad to trim. If you are a trader, yes, but i am not. I appreciate the game changes and the goal posts seemingly moved because of the coronavirus. Yeah. But this is a stick with it kind of thing now. Heres what is interesting. The stick had selloffs over the winter because there were other companies that announced they were going to do virtual and people said oh, there is going to be competition. No, no, no, no, no s that valid aiks of the category when people people do it once, see a doctor one time by the way, these are not fake doctors. They are retired doctors who wouldnt to work two days a week rather than own they are own practice Insurance Companies love this. They are promoting telehealth. The cdc is promoting telehealth. Once you have visited a doctor this way and you dont need a procedure you need a consultation you will say to yourself why wouldi ever go si in a clinic ever again you mean sit in the waiting room. Who in their right mine would do it if they didnt feel they had to right. In the future it is telehealth and emergency room. Very little reason otherwise unless you need something done or you are bleeding to leave your home. I think that is the story here again, expect volatility, embrace volatility if you havent had a chance to buy it yet. Will come down when people calm down imlooking at this as a long term trend arc ten or 20year plan. Thank you for that. We will take a quick break we will come back and we will answer your questions next you still have time rch utoeas as well. We areback right after this. 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 every time it takes care of something for us, we celebrate. How often does that. Got it. Servicenow the smarter way to workflow. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Dont get mad get e trade and start trading wheres the truck . Hes a systems what . Erback. Parked it right there. Male voice what did i tell you, boys . Tonight we eat like kings chuckling youre a genius, gordon brake hit the brake uh, which ones the brake . crash, bottles smashing stop stop stooop brakes squealing whats happening . What . Theres a half of cheesesteak back there. With geico, the savings keep on going. Just like this sequel. 15 minutes could save you 15 or more on car insurance. Raccoon i got the cheesesteak we are back. Lets answer some of your questions now. First up i turn to you joey joe eight years now. So, im not sure that all of a sudden that will change. I doubt youll ever buy this stock at a low pe. By the time you do, that means theres probably something wrong with the company yes, im saying that i would not be afraid to be in this name. And i am in this name. John in washington, d. C. , a question for you brenda, i want to invest not trade, what is the best opportunity right now . Mentions exxon and chevron. I think between those two, and its a safer way to play the group. Can also say neither. Yeah, right if you must in energy and theres lots of opportunities outside energy right now but if youre dead set on energy, chevron is a safe way to play the group. The question is with oil prices where theyre at shall the company is relying on a break even, a 50 in Oil Prices Per Barrel to really make their business work properly so youre at a place where business isnt going to be incredibly healthy again, they have a solid balance sheet. If youre going to do it, thats a safe way to do it. Erin, i would like a comment from you on this, too. Im still staying away from deep value in this type of market deep value typically works at finite periods of time, typically coming out of recessions i dont think were going into recession. I dont think were coming out of recession any time soon can it balance for a dead path balance and rally a little bit absolutely i would still rather own growth rather than value at this point in the cycle. I jump to john from glenn in mission vijahlo, california. What are your thoughts on 3m they may get a jump because of this. Health care being a big focus. This was before any of this hit the markets. Now maybe you had a precoronavirus view and post coronavirus view, i dont know you tell me and tell kevin, please. After a 10 drop in u. S. Equities, i think theyll be the best performing asset class to this point forward maybe a bumpy ride it probably will be a bumpy ride if youre able to buy now and hold, i still think u. S. Equities will continue to be the outperformer. Underweight u. S. Cap especially not out but underweight, overweight, international names. You dont have to go growth value. I think you can own them china asia is now up on the week United States premium, somebody was making that point. This has been like over a decade in the making, that premium being built up and up and up weve gone so far in that valuation disparity, you dont need good news overseas or bad news in the United States for that premium to shrink being long Everything Else ov overweight in the u. S. What about the liquidities . In what sense in the sense that the liquidity offered by so many of these markets is why the volatility is so zprart. I agree the daytoday liquidity of the dax or nikkei not as big of a consideration. The other big differential is the fact that u. S. Equities trade with three times return on equity premium they deliver three times higher r. O. E. No doubt. Than international. Optically, it looks expensive. When you adjust it for quality factors and the return youre actually getting. We agree. The question becomes, how much of that is already being priced in at these mass evaluation disparities and i agree. Theres an argument to be made on both sides. The profit margin argument, the tax rate argument. I understand things have a habit of working out really well when you buy cheap assets sometimes its hard to know in advance what that reason may turn out to be historically, you are awarded when you buy stock markets trading 10, 11 times earnings and slightly underweight of markets. Our time is going too fast. Dow is 700 points off its lows bond yields have rallied stocks have rallied way, way off their lows well have you tried thinkorswim . This is totally customizable, so you focus only on what you want. Okay, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. The dow itself has rallied 700 points off the low its really happened as the tenyear note yield has rallied off its low as well. Yields have turned positive and thats helped the stock market come back. We continue to keep a close eye on both dynamics there lets do final trades. Erin brown, good having you back what have you got for me look at stocks and sectors that have benefited from the move in north rates and the sector falls squarely in this camp we have rates and Mortgage Rates at lows, and i think that once we come out of this volatility, this sector, which has been hit harder than the s p 500 is actually going to prove to be a bright spot for the market. Good thought there. Josh brown, what do you have for me right around the time the market was down around 960 and jim cramer was thinking about buying a cross bow, which i loved this morning i might, too uber 30 and change and had very big ideas into what uber could turn into going forward. This is one of those i dont think im ever going to get filled on trades, right . Yeah. Went to 30 in a week and change. Uber does not operate in chien camera, barely operates in south korea. Its ridiculous. So cvs health, this is a company thats been hit by two factors, not only risk off but Political Risk with the aetna exposure we like it, think its attractive here. Unusual activity, delta, 50 calls in april. Watching the airlines among other sectors very, very closely. That does it for us. The exchange starts right now. Thank you, scott. Im kelly evans. Big drama on wall street today stocks trying to claw their way all the way back dow down 350 points right now. Down from their highs to wipe out this years gains, the worst week since the financial crisis, 80 of the s p i