Transcripts For CNBC Squawk Box 20240713

Saying it was on hopes for a rate cut on friday we talked a lot on friday about just whether and i made a joke that the market shows pricing the quickest sell off. Maybe the one individual that said, i got it and felt sicker it just seemed to subside a bit. Thats right. Human bee haflor is weird. Going into a twoday weekend except the good ones where you could have gotten 1,000 new cases. Up another 1,300 showing a bit of change. I love this graphic friday doesnt really sum it up it came back that was the end of the month. Some of that extra pressure was in the systematictype trading and there is an upside air pocket i think that the fed statement on friday sent the message we are here and probably dont have a very high threshold. It wasnt needed same as december of 2018 it was words that did the job for months until we got a rate cut. The bond market was very interesting. Instead of the bond market leading the stock. Take a look at treasuries. The 10year yield hit an alltime low yesterday of 0. 13 . Check it out now a huge bounce. The twoyear down 0. 81 . Saying they cant cure the pandemic we had already decided that. It cant cause that you know what im saying so they need a onesentence explanation. The bond market is still pricing in the 30 year is like a 20basis point lower the fed is over 1. 5 it never ceases to amaze me how much Stock Traders will buy based on what the fed does there is a lot going on some of them still do. Dont fight the fed is most of that. Global finance ministers will hold a Conference Call at 7 00 a. M. To coordinate the response from the coronavirus the statement expected after the call a draft statement excludes calls for direct Government Spending or coordinated rate cuts so far, futures cut when that broke just before midnight kind of flattish suddenly seems a little less. It seems like we are back from the brink and bought the central bank with some time. For now there was one person, important pirn who likes lower Interest Rates talking President Trump awake and tweeting last night after the australian isnt ral bank cut rates. He tweeted, it will most likely further ease to make up from the coronavirus situation and slow down they reduced to a record low other countries are doing the same thing our Federal Reserve hurts us puts the usa at a disadvantage must be the other way around should ease and cut rates big. Jerome powellled Federal Reserve has called it wrong from day one. Sad. Havent seen that in a long time i do that but finish something and put sad skplan skplamation point i understand what hes saying in terms of credit worthiness we should have the lowest rates. I would tell the president that rates are also a function of how strong euyour economy is. You dont need those i understand what hes saying credit worthiness but not based on how well our economy is doing. The dollar is down. Talking about exporters. We have more roam to ease. The two classes of people that love lower Interest Rates no matter what are real estate people and incumbent president s. And hes both exactly so i understand. Time now for a quick wrap up of headlines six people in the seattle area have died from the outbreak. At least four of them were elderly. There are 110 cases in the United States. The pope tested negative for the outbreak china reported 11 new cases from outside the Hubei Province seven came from travelers returning from italy south korea reported a jump of 600 new cases and the number of the deaths totalled 28 interesting that china is now taking steps to make sure they are quarantining travelers returning from south korea and italy because they are now importing cases too. The pope story is unbelievable youll get conspiracy in this day and age. So whether they spelled it out or not, hes in italy. They tested him. They said, okay. Lets get it out here. It is super tuesday today. Thats today . Is today tuesday . The idea of politicians going out there shaking hands and kissing babies so were most of our president ial candidates at this point they were on one of the top aids 71 years old those are the things you feel better about things that happens from the flu too. It does businesses continue to report on the impact of the outbreak. Visa revised net benefit. In the show down of cross border business shares bounced back around after flat indicating. Now posing a material risk that the number of businesses could decline. A change from what the ceo told us last month. We are not seeing significant effect of the business overall where we see an effect is north asia businesses in hong kong with an overall standpoint, it is not material in any way. Shares of uber now up about a percent and a half more Companies Pulling out in an event that would require companies to gather and travel in a large group all announcing yesterday they would cancel or withdraw some events will now be held on line. You are looking at me i can feel you what are you using there purell. You are blanketing the entire work area. You are set you are good march madness, empty arenas. That wont happen . I kind of doubt it. It is mostly young people. Unless it is a city that wouldnt operate you are fine unless you start to see a bunch of reports. If you do three at once, you get these unbelievable the way of guaranteeing losses three distinct things have to occur. In the movie, that drives the tip. That was well done. Maybe you shouldnt see the movie. Pretty disturbing. Coming up much more reaction to the biggest point gain ever. Earnings coming up today instant reactions are straight ahead. Announcer todays big number, 4,953. Thats how many points the dow traveled in the past five trading days with yesterdays gain, the dow, s p and nasdaq all exited correction territory. No matter where you are, Xfinity Mobile gives you the most reliable Wireless Network 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. Regaining in excess of 1,200 points the biggest point gain ever on monday all three of them now back to within 3 of highs implied to have a spill back at the open modest losses. Joining us for a look at these markets, gene goldman here on set is steve parker, head of Advisory Solutions at jpmorgan how are you thinking about this . You can kind of pull back and say we are down 8 on the high the velocity and the way it came in a pressed amount of time. Put it in context. We have no idea if the next 5 or 10 will be up or down we are dealing with factors distangled from fundamentals we are sticking with discipline and diversification. We are telling clients dont make any moves we are telling investors, you need to have a Shopping List and things you want to buy we just got a nice discount on a lot of really Interesting Companies out there. Into fridays lows and yesterdays lows were the time and what about now you are not going to be able to call a bottom. The crazy thing about the trading we are seeing, nobody wants to call a bottom or step in things are happening so quickly, if you didnt put your buy orders in on friday, as a retail investor, you may have missed it you tend to see these big up and down days around each other. Even a 4 or 5 up and down day isnt going to make much some poise for a flattening out or give back where are you on the idea that the market has or has not priced in a dire scenario to the coronavirus and what it will do to the Economic Growth thank you going into 2020, we were cautious given valuations and concerns around fundamentals on average during a 12month period, the s p 500 has a 10 correction the question Going Forward is what about market returns Going Forward. We do think there will be a little more down side on the markets. We do think it is limited. We point to four main reasons. The returns will be limited. China has given us a game plan how to deal with covid19. Quarantines, purell, resisting social gathers the last point is the fed and Central Banks. We all know the fed cannot cure the virus but they can offset what they are seeing in the Central Market if the fed does nothing, they are saying we are actually tightening and worried about this when will the fed do something the next fed meeting is march 18 thats a long way away thats a bold statement. We believe that the fed, cut rates, between wednesday and friday of this week. Why do we say this, black outperiod. Today is supertuesday. You are seeing data come out this covid19. This has been supply or demand driven weve never seen this dual hit on the markets we are watching it carefully at the beginning of 2019, i think you had similar comments to the way you started 2020. You werent really overly bullish last year. 2019, we were a little bullish. Beginning of 2019, you were not bullish most of last year coming on here early part of the year, we were bullish what, the first week of january . You were on a lot. I remember say you are coming into 2020 feeling that way, you came into 2019 feeling that way as well. We did 31 gene, well get you back to see if something happens between wednesday and friday from the fed. Thank you very much. When we come back, the dow posted its biggest point gain yesterday but customers from the free Trading Platform robin hood missed out on the actions. Mb target reports key holiday nuers. Right now, that stock is down about 59 cents squawk box will be right back. 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. Rowithout the Commission Fees and account minimums. So, you can start investing wherever you are even on the bus. Download now and get your first stock on us. Robinhood. Robin hood experienced a systemwide outage yesterday resulting on its clients missing out on the dows biggest oneday point gain ever. Noting this morning the free Trading Platform now back up and running. It is popular among younger traders, did they miss out yesterday . Yes it wasnt fixed. If you only had an account at robin hood, i guess so if you were buying. I would say other Trading Platforms were sitting by smugly this comes less than a week after Charles Schwab and fidelity had issues. It didnt shut everything down a highvolume day. Man, that would be frustrating if you were a tech savvy all on your smartphone exactly at the iowa caucus coming up, retailer target set to bring us numbers. Instant reaction straight ahead. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. Welcome back target results just crossing the tape coming in with earnings of 2. 69 against the 1. 65 the street was anticipating they are looking at for the full year, historically strong comps. Traffic up 2. 7 . The Fourth Quarter, the company toll ussales were disappointing. That is still the 11th comparable quarter adjusted earnings per share up 10 . They do talk about their fulfillment options. They saw Fourth Quarter shift in order pick up and drive up they saw 80 of digital growth good news for trarg arget is th things like order pick upand drive up is a better way to fill full these things. Joining me now on immediate reaction, Charlie Oshea good to have you here today. Great to be back, becky the numbers look more profitable we got the early news sales and traffic were down. A couple of things would happen maybe that was because they didnt want to change price. That means there is a lot of discipline there best buy took a margin hit, walmart, amazon took a margin hit. In the ring consistently during the holiday. They said, that limbo bar is too low, well back away and preserve our margin. Saying they were off in a couple of key areas. Companies were a disappointment not only for target but also walmart. It is tough to see who got the Share Electronics they called out thats when amazon turns on the gas on the top line. And walmart is walmart this makes a lot of sense to me this release. Addressing that for the comments and the share holder that starts at 9 00 a. M. Eastern time. Interesting to note that Analyst Meeting is set up differently. It will be on line and virtual instead of coming to new york and meeting with people. I will be sitting in my office watching instead of being in the room. That decision was made in the last couple of days. We got an email that said they were going to cancel it here but participate on line. Corona weve seen both ends of the spectrum. Walmart ignored it in guidance in q1. Best buy factored it in. We dont know what they factored in but they did allow for some impact i would say this weekend, was a turning point where you saw a lot of people hording on supplies costco was the strongest yesterday. Walmart up big year to date, they both outperformed handily does that make sense i think midjanuary announcement spooked a lot of people with respect to target and the sales were going to be off a little bit again, it is an operating income game especially now where there is so much competition going on with the big guys fighting this pitch battle there will be quarters where somebody wins big and somebody doesnt. Target got caught in midjanuary. We had january on yesterday he made the point that what is happening with the coronavirus, people are using more on line options or pick up many of these from the dot com perspective that people will use it more frequency. Target seems to be saying when people have tried it, they come back once youve experienced the buy on line and pick up in store or maybe drive up and you dont get out of the car, you are safer. In this day and age, people are in scared of contact i think once you do that, it is so easy and it becomes so seamless for you the retailers love it. As you pointed out, it is cheaper than shipping and it is of thefaer reporting instore pick up within an hour. Coming up, the latest on the mounting cost of boeing. And later, the 10year note back up above 1. 1 . After hitting alltime lows earlier this week. A reminder you can watch or listen to us live or on the go quk xilbeightp. Sawbo wl r back. Now super tuesday, the most critical day of the race so far. No other news can cover it the way we do on nbc, cnbc, msnbc. Super tuesday on the networks of nbc news welcome back, after a nearly 113point dow gain, 1,300, that would be even on a percentage basis, 13,000 would be a lot you said 113. I said 1,200 earlier. We are giving back a tiny fraction nasdaq down apple. You see that yesterday 25 points . Had an upgrade but people grab for the old leaders it has been one year since regulators grounded the 737 max. Phil lebeau joins us with more a year ago, people were saying, it will only be a few weeks or so. We are looking at the oneyear grounding that will happen next week here are the costs that boeing will outline on what it believes the costs will be. Customer payments to airlines and Leasing Companies that have been unable to use the max bank of america believes it will be higher than what boeing has allocated there. All together, bank of america estimates it is at least 25 million it will cost and could be even higher in the future im certain the contracts didnt protect them. If you take that on top of the impact it has had on the airlines, it adds up the longer it goes on, the pile that gets late gets bigger and bigger but the costs per month get bigger and bigger. The big three carriers using the 737 max, southwest, american and united have pushed off return to service at least until august and united is september they expect the max to be ungrounded by midyear. That would potentially allow southwest, american, united to get the plane back in service depending on how quickly they can do training for pilots flying those planes. Boeing has yet to schedule the certification flight the next big milestone after that, there are a couple of milestones as well before the faa could potentially sign off on this plane returning to service. Thinking about it, part of the funds all of these airlines have been paid by boeing is because of the passenger they could be missing fast forward to Flight Cancellations and people not going places does that change details at all . No. I dont think it does. They are looking at this saying, okay, even with coronavirus, what you are looking at with the 737 max, most of them would have been here in the United States there has been softening in demand, domestically, it is generally speaking held up in terms of cancellations and basically sitting down aircraft for delta, american and united all of those, generally speaking are International Routes there may be schedules on routes where they will fly five times per day and will bring it back to four because the market has softened up in a few weeks coming up, 14 States Holding primaries today. Well go threw the biggest names in the democratic race if you are watching the predicted markets, the last week has been unbelievable in terms of joe biden well talk about what it could mean for the markets next. Well be right back. Dont forget to subscribe to our podcast. Look for us on Apple Podcast or favorite app subscribe to squawk pood today not as long as thanksgiving is a holiday. Planning for the future is about more than just money. Let equitable be your guide. Theres one thing you can be sure of. Theyre changing by the nanosecond. Thats why cognizant created a unique engineering approach to design and build new digital products. Learn how cognizant softvision designs experiences and engineers outcomes. Cool. In political news today, super tuesday, 14 states are holding nominating contests. Joe biden picked up some key endorsements he appeared on stage in dallas with former rivals beto orourke and Amy Klobuchar who said biden is the he did not stick around for the rally. Thats fine. Thats okay. Joining us now with more on the democratic faceoff and what it could mean for the markets, sarah, she is head of policy and politics you know the Vice President pretty well and used to work for him. So we have a were going to take what you say with a grain of salt but doesnt mean we cant have a discussion here so heres what 5 38 says that 40 of the delegates pledged on tuesday will be go to sanders. Bide period will probably get 30 . Bloomberg maybe gets 18 and by the convention, sanders will probably still have a plur raal of 30 and biden 45. Its amazing what we have seen in the betting markets because Vice President biden had an unbelievable resurgence. People looked around and said oh my god even democrats said bernie might win. They really panicked, didnt they and suddenly joe looked like grate candidate again. Certainly it has been a volatile week in this race i think you saw African American voters saying we have a big voice in this party and we havent spoken yet so it was a Grass Roots Movement on behalf of the Vice President but look, youre right Bernie Sanders has a big advantage in a lot of states many of them have been voting early like california so its very difficult to say what the delegates look like coming out of tonight but if youre Vice President biden you couldnt have hoped for any better of a last 72 hours and really showing what i think in texas with Pete Buttigieg what people love about the Vice President and the exchange with how he reminded him of his son beau was the best of joe biden is the best of joe biden hes up against a lot here and the votes that have already taken place. Weird whats happening to mayor bloomberg too because he is Single Digits and i made the point off camera that if he had spent half a billion dollars on joe biden ads i dont think it would have been as effective as him spending a half a billion on himself to split the moderate vote that drove home the point that bernie could actually be the candidate and all of these people that said i wouldnt run unless i thought biden couldnt do it, other backers were worried. They all come flocking back to joe now and the whole bloomberg fools errand at this point sounds like he may drop out tomorrow if he doesnt do well on super tuesday i think what you saw was many of the moderates in this race. Saying we have to unify. We cant keep dividing the votes. Bloomberg is splitting votes with biden we see that in the south we see it in virginia, alabama, arkansas so he is going to have a big impact and he could have an impact on the delegatal ri here. Is this too late given how much early voting takes place. Its certainly in places like california and certainly colorado and North Carolina places have been voting. But i think most of us havent voted yet. A lot of people will show up to the polls today and i dont think its too late. But for sure, if the delegate lead for Bernie Sanders is dramatic tonight a lot of people are going to say shouldnt we have figured this out early. Theres a long way to go if the delegate count, it doesnt if sanders is leading by some what but not astronomical then theres other states coming forward where the Vice President can get back in the game. What happens to all the delegates . The candidates that now dropped out. Some states they can. Some can, some cant. It does depend on the state were all about to learn about a lot of rules. Do a jingle explaining it. If sanders runs i dont think so its just hard for me to believe but if you take it from him again and he has a plurality, then whatever you want to call the supporters they sit on their hands on election day and thats a problem for joe if hes the nominee. Bernie sanders has a lot of support and as we have seen this race can change really fast. Its in a lot better shape this week than it was last week but certainly whoever the nominee is is going to have a really big job to persuade democrats and independents or moderate republicans that this is their candidate. Bidensanders maybe. There you go. Maybe not 45 years worth of a lot of experience on that ticket joe biden is now one of the youngest contenders. When we come back, take away from President Trumps meeting on the coronavirus plus a g7 Conference Call on the outbreak is expected to start for minutes i. Could set the tone for the trading day wel lld. lte you what to expect next squawk box will be right back. With a nationleading 150 billion commitment to infrastructure, were creating state of the art, 21st century transportation hubs, constructing new bridges, bringing highspeed internet to every corner of the state, and committing to lowcost clean energy. With infrastructure built for the future, the companies of tomorrow can thrive here today. See your future at esd. Ny. Gov. Drug makers meeting with the president to find a reaction to the coronavirus outbreak likely to set the tone for the session and the Conference Call is set to begin. And retailers struggle with supply chains from china the second hour of squawk box begins right now. Good morning and welcome back to squawk box here on cnbc u. S. Equity futures at this hour, you can see the dow indicated down 59 points or the s p indicated down 11 and the nasdaq indicated down just under 20 giving back some of the gains that we saw yesterday. Got some confused people that is true that the futures are up 168 but the fair value is up 224 so even though the futures are up the implied open is down. Futures continued rallying hard do you know how long we have been answering questions like this for about 25 years. You think its were confused or maybe you might be confused anyway, lets look at the ten year note. I mean, we try to get these things right we arent broadcasting globally. We do our best thats better than 1. 05. What would be your goldilocks ten year id like for it to go back about 135 right now. Like today id say 2 . 2. 5 but anything above zero. Above one. Right exactly. Only term on term money. But its funny. Thats the way capital is supposed to work right now theres a call happening. We could be within the hour and the meeting of the finance ministers and central bankers is lead by the us. Fed secretary and fed chairman legard says the ecb stands raetd did to take appropriate measures theyll use all available instruments to the fullest extent possible. The fed would act as appropriate to support the economy a reuters story said a draft statement will not call for accord nated break ups or new Government Spending. We could not verify the account. Its normal to leak and also normal for the draft not to reflect the final result its 50 50 i would say ive covered these things for more years than i want to admit. Lets take a look at the fed probability as we head into this this is accurate here. 48 chance of 75 basis points cut. No chance of a 25 built into the market with a 2 chance of a 50 basis point. Overnight, australiacoming by 50 basis points. We will see you in a little bit. Yesterday President Trump met to discuss speeding up work on a coronavirus vaccine. Good morning. Good morning. The president urging the Drug Companies and ceos to proceed a quickly as possible and gathering information about where their efforts stand and what they might need from the federal government i asked the president if he thought any federal dollars ought to go to these Drug Companies to need up that effort heres what he said. Some of them are so rich they can loan money to the federal government. The president not into the idea of giving federal money to wealthy pharmaceutical companies. I also asked if he sees the need here for any economic stimulus given the Financial Impact on markets and potentially Economic Impact across the country. The president said the economy is strong. He cited yesterday the stock market rally didnt seem to suggest that theres a need for any economic stimulus here but overnight and this morning the president has been tweeting about what other entities should do so he doesnt seem to be proposing any stimulus in the white house but he does say overnight in the tweet that he would like democrats on capitol hill to move forward with a payroll tax cut and he would like the fed to move forward as quickly as possible with a rate kuchlts thanks. You bet. Dr. Scott gautley serves on the board and hes also a former fda commissioner and cnbc contributor. As a former fda commissioner, if we got something quickly, in the test tube, is there such a thing as fast track approval for either a therapeutic or a vaccine . See if you can repurpose it. And second we need an antibody based approach thats like what regeneron is developing could be available and third vaccine strategy i meant fast track. And even existing drugs. You couldnt find doctors prescribe things off label all the time theres stuff thats shown activity i think of that trial in china, if we turnover in that trial and were going to do that in april and that shows activity against the virus. You still need to do that at that point youd still be collecting data and probably be doing it in the context and delivering treatment very widely. If that drug shows that its effective in those early trials. Were hearing that when you want to get nervous about things were hearing this may have been here longer and a lot of people may have been Walking Around do we have no idea that we need to do testing. Where are we onramping up the ability for providers to test. And we should be able to have the capacity to test about 10,000 samples a day that might be another 10,000 so i think within two or three weeks youll be up to a Testing Capacity around 20,000 patients a day potentially. Its going a little bit slower theres about 60 Public Health labs that should be online later this week and hopefully all 100 of them may be online. Thats a different story than the front of the New York Times today suggests they have a story that the Trump Administration says they hope to test nearly a Million People this week. But test kits are different than capacity to run a thousand tests. And you probably need to bring it on so it implies theyre going to get approved this week. They applied monday and that does imply that one of the major manufacturers is probably going to get online if they think theyre going to have a million tests in capacity and thats very different and thats depending upon what the labs can do and how many are running. We actually see this test kit get approved. That is good news. Theres just a statement that eli lily put out and they say because of the concerns raised about the coronavirus and whether a patient can count on a reliable supply of medicine they dont anticipate any shortages of any of their products including insulin. Part of what is circulating is the idea that you wont be able to get your medications. These small companies, generic manufacturers, they might be a little bit more pressured by the shortages in china but they should be okay i was going to say, the broad range of response right now, this is debate maybe its a real debate and maybe its not containment or mitigation. Is there a difference in terms of what Public Health officials will be doing one way or the other. Containment means you find the person is thats sick and you isolate them and test them. Were already doing mitigation theres too many cases now to contain it in the United States. Or slow it enough that it dies out. Which is unlikely to happen. Slower here than in china or South Carolina or italy or iran . Would you look at that and say that our Public Health officials were less ready than these other places was it the cdcs fault with the reagent. Were still not leaning forward as aguess i hagressivelt should. The cbc didnt have funding or was it where would you assign the blame if we are behind. We should have done it from the outside and its taking all the approach with the respect to testing and get the manufacturers in the game from the outset get the academic labs in the game big academic labs can do this testing and get the Public Health labs in the game. Instead we just went with the Public Health labs and when there was a hiccup. Not allowing them to come in. How would you grade the response i think the effort to close the travel from china was clearly the right decision it bought us a good amount of time the question is what did we do we did some things right we got the country prepared and the hospital prepared but the Testing Capacity could have been ramped up sooner now were catching up and we are catching up. Got a b, b plus, what would you call that . I think there will be plenty of time to look back. We need direction depending on which newspaper you read you dont know whether its an a or an f. So these are weird times were in and we need, you know, we need real details. Scott, thanks. We should note one more time that scott serves on the boards of those really wealthy Companies Like pfizer and thats like a Bernie Sanders quote that these guys have a lot of money they dont need any more money youre not going to do that either. Anyway. Ill do all of the color commentary anyway, thanks. The Company Reported its earnings earlier this morning plus Conference Call with the g7 leaders expected to move markets. As the leaders talk about the possible Economic Impact of the coronavirus outbreak and how they should respond. Much more on the options straight ahead. Lets get a check on the markets this morning after a huge update yesterday, the biggest point move ever for the dow, this morning the dow futures are up at this point by about 45 points. Nasdaq also up about 6. 5 points and key futures down by about 2. Squawk box will be right back. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] amazon prime now and amazon fresh Delivery Service have been overwhelmed by demand. Theyre turning to the online retailer to avoid going to stores both services would have limited availability meaning orders are being delivered more slowly than usual. They havent reduced the number of people or trucks dedicated to either service but its seen a surge in demand straining its delivery. Fresh direct last week when i was ordering groceries from them, they posted on it we may not be hitting all of their delivery times they hit mine but he said people are loading up on a lot of this stuff and using it much more heavily. More companies are pulling out of events that will require employees to gather in large groups facebook, google, microsoft and adobe all announced they would cancel or withdrawal from various conferences because of the outbreak and some events will be online only. Retailers in the last few minutes, kohls earnings and revenue topping estimates. Bringing the annual yield to 7. 3 check this out, kohls now is u by 9 . The Company Blames challenges with the weather sensitive categories and certain locations and target cancelled its env investor day that was supposed to be taking place in new york today. Instead theyll be doing it online only. Revenue fell short joining us to talk about more of targets earnings and the retail sectors recent moves is Garrett Nelson hes the Senior Analyst at cfra. Thank you for being here today. Sure, thanks for having me. What do you think of targets earnings right now the stock is trading up slightly no, trading down. So it was a slight beat on the bottom line. This was the fifth straight quarter that beat so this is par for the course for target. The top line came in a little bit light. The key here was their fiscal 2020 guidance that was right in line with consensus. So no major surprises. You look at the stock, this is a stock that doubled last year so the recent equity performance has been outstanding we have a 115 price target on the shares it was not as strong as they had been anticipating. It didnt look like there was in new bad news. Theres no real good news here its just kind of in line with expectations so i think that youre seeing a sell the use reaction on the modest beat. They didnt have any details about the coronavirus. So were more cautious on target right now relative to some of their peers like costco and walmart that we both have buys on because walmart is more of a Consumer Discretionary play theyre not as levered to Consumer Staples, household essentials, food and beverage item groceries that costco and walmart are levered to theres reason for caution and the performance of the stock has outpaced the companys Earnings Growth over the last two or three years. And the stock hasnt performed as well. Sure, we like to leverage two Consumer Staples and these are the real because of the coronavirus . Thats part of the reason what you saw with some of the shortages that are being reported of a lot of Consumer Staples items, costco up 10 yesterday and target up about 6 its because consumers are going out and theyre loading up on every day household items. We visited a target store in maryland yesterday and they were completely sold out of tissue paper, a lot of Paper Products and clorox and lysol completely sold out. But it seems to me that all of it would be something that tapers off rather rapidly unless we see a much worse situation here in the United States. Youre looking at that as a reason for investing the stocks over the long haul. It will even out over time but the point being is that this Consumer Behavior is going to provide a boost to near term earnings for costco and walmart with their sams club division. 20 is a time for a little bit more caution and thats why we like the Consumer Staples names relative to target which is really Consumer Discretionary play. Thanks for joining us today good to see you. Leading a call on the financial and economic response to the coronavirus. Its a coordinated cut heres a look at the ten year treasury note. At leaf blowers. 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. So it doesnt make a whole lot of Financial Sense for them to stay in this great big house. But, well, this is home. Its where they raised their three boys. Could they downsize . Sure. Will they . Not as long as thanksgiving is a holiday. Planning for the future is about more than just money. Let equitable be your guide. We see eat emerson,mulating when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Welcome back to squawk box businesses continue to report on the impact of the outbreak visa revised by 2. 5 to 3. 5 . The outbreak resulted in a sharp slow down of the cross border business shares bounced around on that news. Uber now says the outbreak poses a material risk to the companys business in a filing it warns investors that the number of users could decline or fluctuate and could disrupt numerous offerings and it changed from what we were told last month. Were not seeing a significant effect on the business overall where we see an effect is in north asia, for example. From an overall standpoint its not material in anyway you coughed. I have been coughing since before davos like 8 weeks. Patient zero. Like we werent with International People in davos. I know. In close quarters in a cold area. Still to come on squawk box, will Global Markets see a coordinated effort with central bankers. Were going to talk about it after the break. Later how much worse will the outbreak get here in the United States and what should you be doing to prepare also at 8 00 a. M. Eastern Time Economics professor will join us to talk about the Economic Impact of the c ox ro taxes . Coronavirus, squawk box will be right back sales tax, real estate credits, solar incentives. And we have no way to integrate all that . No. But bdo does. announcer people who know, know bdo. Its almost like a challenge everyday mywws been an amazing journey. To see how well i can eat and still enjoy myself all day long. I wake up every morning to see how much weight ive lost and how much better i look. Myww join today with the ww triple play they reduce to 0. 5 of record lows other countries are doing the same thing if not more so. Our Federal Reserve has us paying higher rates than many others when we should be paying less tough on our exporters and puts usa at a competitive disadvantage and must be the other way around and should ease and cut rates big. Jerome powell lead Federal Reserve called it wrong from day one. So that was five hours ago so if it was him and it may not have been. But that would have been at 2 00 a. M. Or so. 7 hours ago he was tweeting about something and then 8 hours ago he was tweeting about sleepy joe. That would have been about 11 00 p. M. And then the others would have been in the 2 00 a. M. Hour so when he said he was awake last night, either he was or somebody was tweeting this stuff. Steve is here and more on that front. Times there have been emergency meeting after 911. Financial crisis and i dont know if you have the list up but three other times. And also to provide assistance as needed. They dont try to force people to do things that they otherwise cant do its an interesting time as you know europe has negative rates. Japan negative rates, the u. S. Has the most scope but they dont want to go negative. Balance sheets are bloated with the asset purchases of prior attempts to survive economies. Its also an interesting time where President Trump has a different idea about global and coordinated action than his predecessors did. Stay with us. Bank policy institutes chief economist. Good morning to you. Youre expecting more than talk. More than just a statement to come out of this call today. You actually expect coordinated action. I dont know that coordinated action will come in the form of this statement its great that there is this statement coming out according to the actions. Finance ministers and Central Bank Governors are closely monitoring the spread of the virus and impact on markets given the potential impacts on Global Growth. We reaffirm our commitment to use all appropriate policy tools to achieve strong Sustainable Growth and stafe guard against risk theyre ready to take action including fiscal measures where appropriate. Theyll continue to fulfill their mandates thus supporting price stability and Economic Growth we welcome the International Monetary fund and other Financial Institutions and stand ready to help address the human strategy and challenges. No action, this is talk. No but this is typical. Is it enough take a look at the futures market. I would not if i was counseling somebody on a trade id say dont expect them to announce 50 basis points because the g7 doesnt have them. What do you expect out of Central Banks. I would expect them to follow up on this with some easing and with significant easing. Theyre going to measure it by the amount of Market Movement that it generates and thats going to apply getting ahead of market expectations. How do you get ahead of expectations now we priced in more than half a point of ease by the march meeting. If they could take and i would expect them to take a cut of perhaps 50 basis points and perhaps 75 basis points. They have to weigh off getting the positive effect. They want to improve market confidence and not shake it. You were the Deputy Director of Monetary Affairs inside the fed during the crisis. Thats right. You just wrote a chunk of book that came out tell me what is going on inside the fed right now. What are they doing . How worried are they what kind of process to figure out what they can do theyre working around the clock. Its a very committed organization to make sure they can cushion the blow of this to the u. S. Economy and keep the economy strong they need to look at the whole range of tools that they have available. They dont have a lot left with them are you hearing there may be new ways that we havent thought up yet . To be clear, none of this is based on stuff that im hearing from people. They would keep it to themselves just based on my experience and i would certainly expect them to be revisiting the tools that they used in the crisis and which ones might be used its an emergency facility that was a discount window for brokerdealers it would be very reasonable to expect it as a response to this. Volatility goes up. What does yesterdays big market move do in terms of almost 1,300 points to the upside, taking off the pressure from this group of people in this call. I think the fed wants more data and more time i dont think it likes being forced into a position on the other hand its mandate and job forces it into a position where it has no choice. Im going to go out on a limb and maybe bill wants to either push me further orpik me up here i dont think its crazy to think of an imminent cut here. Thats really going to it could and i think what the fed wants to becky asked a question which is how do you get the element of surprise . I think it lost that if you look at how the probabilities are priced, like a 75 almost built in or close to being built n. Imp its going beyond. Theres not a lot of scope to surprise the market here but pick me up and throw me further on a limb. No, i agree its going to be a negative shock in the market. They dont like to do that when you go back and look at the transcripts they measure their effectiveness in terms of easing by what Market Reaction they get. Did you just say they dont deliver on some sort of a rate cut. Its a tightening surprise for the markets. What exactly do you call a tightening but markets would react negatively thank you for having me. Congratulations on the interview one week ago where we have to rely on what he said it didnt end. Anyway i want to say hello. Its amazing that youre here thank you for joining us on set. And how it doesnt matter that he has the best return. We asked him some of the questions on your behalf before. You had talked about for a long time how if millennials dont want to buy crude oil stock or any stock that has to do with fossil fuels what does that mean with how far the stocks can go. Its to reiterate howe well e is doing i gave up and its not because i think that mike is doing a bad job. Its because the next generation Portfolio Managers stitchimply touch it you dont get to be the ceo of chevron and say listen im finished but very often when you look at the profile of what he has to deal with in the younger investors and the younger Portfolio Managers theyre saying im not touching that its carbon and you cant lower your Carbon Footprint when youre a carbon company. No matter how hard you might try. Did you see bill Gates Company . I thought he had some and you cant build a Financial Model where you just dont use fossil fuel that concerned me greatly chlts wh i think he was on yesterday talking to him about you are getting in trouble when you say this im going to say he said its a really bad flu and that did not mean that therefore your okay. It meant a lot of people are going to die just not as many people as may have died in china and that the 1. 4 which is a high percent may be overstated because of all the people, the people that dont have it or didnt go to the hospit hospital the 1,099 people that were hospitalized so wants to take a broader view. I had to quote up and i knew this was going to happen it was just to put the quote out to see if people were disinterrupting. Its also back and were asking it yesterday. Its this gathering commentary from the ifi. I know that people did have High Expectations starting sunday night but i come back and. What is it they have no idea. If we keep going into the stay at home world id rather figure out how to help them individually keep their payrolls how am i going to keep them are they going to hold the line on rates here he was at the fed when you said they have no idea. He was inside the fed when you said they have no idea so you can talk if you want. Well, you know, its good to be right its good to be the king this guy has done unbelievable work again when we talk about facts, facts versus fear. I find it to be refreshing. He said fall twice and i said maybe you didnt hear what i said i said fast track. That is faster. I know. Do you think this but for therapuedics why cant we have something in a month. I think in our country you cant test on Healthy People how does it distinguish itself during this period just dynamite. Do you think they finally found out theyre not more powerful no more than we do. One of the things this question of providing to businesses banks in the last ten years have doubled the amount of capital they have. They have quadrupled the amount of liquid assets but what we saw is they can have all the liquid assets but where necessary markets can still be fragile and so the feds take i think should be taking actions to increase the provision of liquidity that they have and also to adjust the regulations as they were intended to be adjusted to make sure that there werent any necessary impediments there. Why isnt he pushing for it i dont know these are fed regulations and jim said something that i think is really smart which is this idea which is businesses that are good businesses should not go out of business due to a temporary event. I think this may sound a little weird but one way to think about this is the way the government has responded to hurricanes in the past the fed issues a supervisory relief that says if your borrower is in trouble were not going to penalize you for keeping that bad loan on your books. Things that get people over the hump to the other side of the crisis. Yes. You and i are in total kbreemt. I agree it was a good move. Thats what we need i got a double whammy here i need help. Lets get back to the point you have 20 people on your payroll. People stop going out to eat, what would convince you that okay well keep them on and i think well do it youre in a position that you can do that and most arent. We own our places because we like it and we are going to get through this. What happens to Business Owners who arent in your position well, the problem is the actual companies that have very fragile and those are the kpens that we have to worry about and they are Good Companies but if you have three weekends in the winter that are bad a lot of these Companies Close because of rent so i dont know, i like steves idea its a national emergency. Lets protect them i will go for that. The trouble with my idea is its more of a fiscal idea than a monetary idea and the trouble with the fiscal side is they have to fight each other now earlier talking about. Emergency situation like that. Get their act together and these targeted loans. Ill take the other side of that but ill hope that im wrong. 50 50 on the lows. 50 50 what is it . He is really politicizing. This is the wrong thing to politicized. Dont try to take this. Remember its going to be down 5,000 points. Got an hour. Got 60 minutes to get down there. Okay. The fed, huh . Ill still shake your hand. You got purell. When we come back well have an update on the coronavirus outbreak and reaction to the g7 call and the impact on the Global Economy futures right now backing off giving back some of yesterdays big ingas. Squawk box will be right back. Call the Insurance Company its them, calling us. Its going to be a week before they can get through on these roads shhh, sorry, i didnt catch that. I said ask how soon they can be here right now . Whats now . He says theyre surveying our property now theyre probably at the wrong house i dont see any hovering his name is hovering . Look up . By automating claims with Machine Learning and analytics, cognizant is helping Insurance Companies advance how they serve even hard to reach customers. Cool is awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] im jennie garth, and as a mother of 3, i know kids worry about a lot of things. Getting enough food to eat shouldnt be one of them, but here in america, that is a real worry for 1 in 5 children. This is unacceptable and something feeding america is working to solve. Through a nationwide network of food banks, feeding america serves virtually every community in the United States, including yours. See how you can help your community. Visit feedingamerica. Org. Together, we can solve hunger. Together, were feeding america. Futures right now maybe some of the lows that we have seen this session but after 1,300 point advance yesterday, lets get to meg terrell are you at the c organizatiorons update desk at cnbc. Dont touch it so much hand washing. Numbers are continuing to climb and the case is now topping 5,000. Its more than 2,300 in italy and more than 2,000. China with new case numbers declining now implementing measures in several large cities to quarentine travelers returning from those countries at least 13 people have been diagnosed after returning from iran and italy and then the u. S. Has the ability to test here grows more cases being diagnosed as well. More than 100 confirmed cases in 15 states and six deaths all reported in Washington State measures taken across the country to try to limit the spread of the disease. This as they met with the president to discuss time lines with vaccines and therapeutics it will be a year until a vaccine is widely available they said therapeutics may work more quickly. Well talk more about that on the exchange thank you for more on the coronavirus, she is associate professor thank youing thank you for being here today. Thank you. What are we seeing in new york city . People are looking not only at new york city but seattle where youre looking at potential for more cases to come there is some concern about Community Spread theres the study that was done recently that showed genetic mapping so it seems that maybe people are being exposed to coronavirus and not developing as serious of symptoms and therefore other people are getting it in new york city and in general i dont think people have to be as alarmed there seem to be a very low number of cases relatively only 100 or so confirmed cases but we have to be concerned rgel how much is because we not doing testing . Theres a threat from a woman in seattle that tried to go in and get testing done and was told to forget about it. We dont know if everyone is using the same test. If we think about other conditions, hiv, cancer, we dont usually use one test we do a Screening Test and then a confirmatory test to make sure that positives are positives and negatives are negatives. We will see more positives but when i think about for example south korea doing 10,000 cases or tests per day, are all of those truly accurate results, right . So when theyre seeing the large number of positives. Wait a second, thats an even bigger concern we keep thinking if we can get the testing ramped up and are dealing with things at least well have answers youre suggesting that we might not at that point . I think the tests that the fda and cdc are using are probably accurate but the ones that the companies are coming out with when people run and its a little bit higher and its the common cold everywhere. So you need to test people that are sick and now theres larger numbers of people getting diagnosed. And youre also completely testing. That concerns me more than anything i heard today just because we talked with him earlier today and he said that the story in the New York Times is incorrect theres not a million tests that are going to be able to be completed later. Theres going to be 20,000 a day by the end of next week but if youre telling me that the test we do end up running at that point you cant feel all of that confident attend. I just think in general principles of testing we have what are called Screening Tests where a lot of people we want to make sure that everybody so just as a general principle im not doubting that theyre accurate. No obvious reason for alarm given the cases so far are you seeing people rushing and saying maybe i have this to what degree is it causing more attention more people are getting concerned but are they coming to the er or are they staying home . Thats the question. New york city to me looks like its becoming a little bit quiter i think people staying home makes more sense for many reasons. Aside from this new coronavirus, if people have symptoms and now can text and call ahead and notify people beforehand think about measles, the flu, you dont want all of these folks sitting in the er in the waiting area of a primary care Physicians Office so we should take advantage of that. Thats the silver lining. Were not seeing as many kids being infected so thats an area for study. Japan has closed its public schools. Doctor, thank you. Well talk again squawk box will be right back. The barkins are empty nesters now. Should they downsize . Probably. Will they . Not as long as thanksgiving is a holiday. Planning for the future is about more than just money. Let equitable be your guide. Its only human to find inspiration in nature. And also find answers. Our search to transform. Farm waste into renewable natural gas led chevron to partner with california bioenergy. Working to provide an alternative source of power. For a cleaner way forward. We sunleashing the promisegas of clean energy. At emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Theyre monitoring the spread of the virus but theyre not offering any specific one at the moment on the move on this news as well and investors and and this morning, millennial users want some answers final hour of squawk box begins right now. Welcome live from the Nasdaq Market site in times square. Andrew is off today. And they were up and they are down, just a little 30, 40, 50 points and maybe sold off a little bit after some disappointment perhaps with that communique that steve brought us its about 1. 15 or 1. 12. They actually come down a little bit as well and. The group of nations bringing up specific actions to combat the virus and reaffirming the all policy tools. And keep that pretty high on the 50s so the markets continue to expect Federal Reserve action 2008 financial crisis and the 911 terrorist attack it doesnt happen often. I think its a great point. 2011 european debt crisis i guess that was more localized. Thats accurate or handled through the g7 meeting. Typical for them not to announce action at a time like this heres the general frame work of what were going to do and each central banker goes home and gets there on the phone but thats the way it usually works. Central bankers say they stand ready to act but as we have mentioned, do they have the ammunition to act. The markets heres what a former fed governor said on our air last week. I think its likely to be a gun fight out there. When i look at the worlds big Central Banks not a lot of them have guns but the fed has a bigger gun than anyone else and the fed probably has a knife i wish they had a big powerful gun coming into this moment. I wish they had more ammunition and the discussions that we had on this show over the last nine years. They prepared themselves for a shot. So. Joining us now, the harvard professor of economic and Public Policy and former imf chief economists i guess just to start off, whenever anyone has said we should be hesitant about getting too low and we wont have anything the next time that we need something is a what people were worried about do you think were okay in terms of the ammunition that the fed has . Its not just the fed its not just central bank or fiscal policy. And were already running a trillion dollar deficit. And its bigger even without any and without concern. The sentiment, the negative sentiments in the market that we saw last week. And with science maybe. Well, i think thats well put. I mean, i dont know what people were expecting and i dont know to actiwhat ex this is a shot or is it a supply shock. People stay home and dont make anything and i think its still on board they almost certainly are going to have to act but for example, its going to cut this morning as opposed to say heres 25. I guess if we go negative and i mean, not phenomenal and theres plenty of ammunition left once youre there, it doesnt work well. I mean, if we chaenge our frame work theres a lot we can do with going negative and no one is prepared to do that at the moment i think thats the future ten years from now but not now theres really not all that much that they can do and quantitative easing is smoke and mirrors. I dont think i disagree with my friend ben bernake that its really going to do that much. So, in denmark, buy a house or something make money every month. The mortgage is negative and you would get back a return. But we need to change things here. Theres a lot of reluctance on the part of Federal Reserve officials to go negative but also theres some scope there for the fed to do things with rates. And with a great question and youre asking a question you have been asking for a week now is this a demand shock or a supply shock and what rates to solve that problem what do you make of the g7 statement . Is it enough is it sufficient as at least an initial response from the g7 group of nations i dont really know what that means. Obviously the Central Banks in europe you played that clip very well but the u. S. Might have a knife and the japanese and the europeans dont even have that as far as the Central Banks go i mean, i heard the germans are thinking pretty seriously about doing a fiscal stimulus. If they are probably everybody is but this g7 call was probably put together pretty hastily and, you know, they didnt have an agreement in advance. And almost surely coming on and they dont know whats going on and remember if its a supply shock more and its not in the near term, that actually and we have to really go way back here, that puts upward pressure on prices well see supply shortages and stuff. Its unclear what youre advocating act anyway or hold off and hold back until you know essentially what the enemy is well, theres clearly a panic going on and the fed especially wants to avoid getting backed into a corner where its always got the markets back the market costs are cut and that it has to cut and i think Federal Reserve officials are very concerned about that. At the same time, it really, the down side is pretty asymetric people are pretty scared about it and first and foremost and how are you addressing it. And react with quarentine. I do think that we will and by the way, if you really want to do something to calm peoples nerves and cut back the tariffs to china and that would help with the global surveillance employ chain. And that would be something to do he could unilaterally move the tariffs if he wanted to. Well, i just wonder what effect on global gdp maybe we can get it back maybe we snap back and we dont lose it. Pretty significant effect in china. Thats where the biggest effect is going to be. Okay. Thanks. When we come back, bond yields are at historic lows from yesterday. So what kind of relief can you expect if youre a shareholder in the big banks and users of trading app robin hood want to know why they couldnt make trades well break down what happened and whats next for robin hood as we head to a break, take a look at shares of target revenue is a little light. They did beat earnings per share. Well be listening for comments on the coronavirus stay tuned youre watching squawk box on cnbc at todays best western, stay two nights and get a free night for your next stay. One night, two nights, free night. Book now at bestwestern. Com. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] the dow did tumble into a direction. Shares of jp morgan right down with it. That sell off represented a good opportunity. Joining us now to talk about jp morgan, the big banks and the recent volatility are jeff heart and the chief equity and derivatives strategist at etig we did recover close to half of the index gains. Where does that leave us terms of where its priced in right now . It was literally a perfect storm of positives you were hiss r torically oversd by virtually every measure perhaps less bad news on the virus than the previous 48 hours would have expected you to have. You have expectations of Central Bank Action that we didnt get today and you had it around the democratic side. All sound pretty ben penniless. In the environment where the baseline for volatility is the low 30s this morning, this is going to continue for awhile and you no, its a environment that really requires patients. I look at the futures down 200. A little bit of a pull back because were just used to much bigger moves very quickly. Its the new reality. And basically if you look at yesterday the last hour was much more an absence of sellers than, you know, urgent buying. If were talking as we are about the fed are they going to move before their march meeting with a half point caught is it going to be something more dramatic from the Central Banks. Is that all we have to worry about . Its less about the market than the totality. Part of what people need to understand is you look at the last 30 or 40 years the health of the markets are linked to the health of the consumer and the health of the economy. We dont know what the virus impact is going to be. What we do know is that if you keep the consumer some what bland to the extent that you can the recovery is likely to be more vigorous. Talk about how theyre driving through the Financial Sector tremendous pressure on Interest Rates. You do also have concerns about consumer activity and these warning about payment volumes how does that play from here it might be an understatement thats tough for banks. But just as importantly if the yield curve is going to stay like this and we Start Talking about the sessions jp morgan has a lot of leverage. Theyre spending almost 12 billion a year on technology not Many Companies can match that and if we really do get into an environment where revenues drop they can cut that back thats pull to support earnings like a lot of competitors cant do thats a lot of earnings support. So i look at jp morgan if were in a tough environment the strong gets stronger and jp morgan is one of the strong. If the environment proves resilient jp morgan is going to continue to be a market share gainer the overall sector had a hard time performing well and it can be more resilient. Its okay that would make it a tougher environment for banks. If we move in that direction or the uncertainty of that direction that plays a lot more directly into jp morgans strengths. I think as far as being a Bank Investor its time to be more selective. Its this environment. And last week a very strange occurrence if you think about it the s p 500, 500 largest liquid stocks traded higher. Thats happened. Thats been a sign of edging panic. We saw it on thursday and friday and thats been a very good prekick pr predictor. All right coming up, gaming out the fed in the next move there, stocks rocketed off of their lows partly on the promise of rate cuts in the near future but any concrete moves from the g7 finance minister talk about the options for the u. S. Fed and here is a stat that could put a spring in your step this morning the dows biggest ever point gain 1,200,1 1293 points yesterday. Now beat 1,190 points thursday stay tuned youre watching squawk box on cnbc amid the recent market turmoil Berkshire Hathaway raised its stake in Delta Airlines last week berkshire bought more than 976,000 shares last thursday for about 45. 3 million. The stock this morning up to 49. 24. He owns stakes in all the Major Airlines roughly around 10 but delta is the one he owned the most in north of 11 who did this . I dont know when we talked to him on monday of last week he said of the four big stakes that would be american, united southwest and delta, three of them were his positions and one of them were either of theirs and he didnt tell us whose so i dont know entirely. I heard from him yesterday about march madness. I heard. He added a new thing for the contest. Tif creighton gets to the final four theres additional prizes available you get either a brick or one of the stupid bricks because he has a Brick Company or a box of candies. Better than nothing. I said to him a guy in your position where you are right now,a he did take it into account. I want him to reimburse me. Which also really wouldnt hurt him that much. You dont know how to do it. So love from Jack Dorsey Tesla and elon musk tweeting i want to say that i support jack as twitter ceo he has a good heart. He is facing pressure from paul singer talk about some other things leaders from cnbcs Technology Executive counsel are weighing in on the impact of the coronavirus that it will have from its own companies. Good to see you. Classify this as anecdotal. We have these leaders from the Technology Executive counsel these are ctos, cios, across Different Industries significant companies. We gathered them together and poll them about every quarter to see whats on their minds. This past quarter we asked a question about coronavirus, it was starting to emerge as a major concern asking them how it was effecting their operations and their business more than a third said they had employees that were stranded away from work for extended periods of time. You know, about 2 5 said they had allocated more resources for virtual work you can see the stock price taking off or halted operations in china all together and various other responses that you would expect around limiting travel and having delays and obtaining visas and things like that its from some of the top Technology Executives out there. When were you talking to them it was a couple of weeks ago. So you can imagine its stepped up even more since then. Around the time when mobile World Congress was getting it. We had europe and south korea looking a lot more concerning than they were back then and it gives you a little bit of an insight into how quickly this is moving just a couple of nights ago i was on thephone and i would argue that youd think video conferences is easy. Theyre tech workers its a lot of times being in the same place together working on a single thing. You cant do that as efficiently if youre on video conferences. We had him on just talking about the retailers and how Consumer Behavior changed over the last week. And for a lot of them once they try it for the first time you see how it works they reich it. It could change Consumer Behavior this going to eliminate the need for business travel. It made it more important to decide when do we get people physically together but the quality of the connection when youretrying to close a deal. Face to face over a meal. That matters the quality of the interaction and as High Definition as High Definition is its not High Definition enough. Yes it is speak for yourself. Thanks a lot. I could be at home doing this. You could be anywhere. I could be at home doing this. Youd get tripped on your way. Home could be in a low tax state too. If you think about it. Like florida zero tax state. Hint here i thought of that myself. We cabot do a foot shake virtually. You could pay for your apartment in florida with savings from that thats a killer thats when people write in and tell me how big of a tax break i got. Really okay its interesting 20 up yeah. Thanks. Anyway. Coming up what went wrong with robin hood yesterday. Millions of customers couldnt execute trades on the best day for the markets in years a live report on that next take a look at shares of kohls. Following disappointing results. Saving for avas college. Financial security. Being able to retire. On our terms. No matter what your goals are, our trusted advisors can help you reach them. Ameriprise financial. Our trusted advisors can help you reach them. We segetting to patientscines in record time. At emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. The unparalleled landscape of park city, or the famed peaks of whistler, youve faced the hassle of lugging your gear through the airport. With ship skis, youre just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. With unrivaled pricing, real time tracking ship skis delivers, hassle free. Ship ahead and go catch those first tracks on fresh snow. Ship skis. Your skis. Delivered. Stay two nights and get a free night for your next stay. One night, two nights, free night. Book now at bestwestern. Com. VoMike Bloomberg has a recordgue of doing something. As mayor, he protected womens reproductive rights. Expanded Health Coverage to 700,000 new yorkers. And decreased infantmortality rates to historic lows. As president , hell build on obamacare, cap medical costs, and will always protect a womans right to choose. Mike bloomberg a record on Health Care Nobody can argue about. Mike im Mike Bloomberg and i approve this message. Moved even lower and now they have recovered once again and are down 79 points they didnt offer any specific moves. Mike santoli is posing to help us put the recent market moves. Posing. Thats a good look. Thats it just on two feet here. As a man quinn lets take a look at a three year chart of the s p 500 just to give a look at that come back yesterday. And it brought you back to last wednesdays level. It was perhaps the trading low are we looking at something akined to what we saw in the first part of 2018 and then you sort of had the trade in the box for awhile. But once you had a big vertical drop and have gone back to the peaks of early 2018 on friday it suggests you might have to swing around a little bit in this range to find the right level. I would say, one exception, this was a v bottom in december of 2018 it was never retested. So they have been under pressure credit has not been at the center of the market pull back but yesterday there was a big rush of new money into this high yield etf perhaps trying to find its footing there. You are good at drawing. Oh, you know, thats mine. Love that book. For more of whats ahead with the fed and the groelobal intert rates. Joining us is peter fisher hes senior fellow at dartmouth. Also the Hoover Institution senior fellow and stanford economics professor. Welcome to both of you. Great to be here. John, lets start with you first. And the Central Bank Governors and worried about inflation as well and of course we mention the imf and the world bank which are Significant Players at this point in the World Economy it was a good statement. They met, they talked and they said what they think. Peter, steve thinks that we could still see a rate cut from the fed before the meeting the next meeting, the middle of this month do you think that is likely just based on where we have seen the markets to this point . No, i dont think its likely before the meeting we still dont know the mix of supply and demand shot that theyre creating theres a shock to Global Supply chains its going to be a demand stock to consumption and investment. Its a mix of both id feel better if they fought harder about it and had a good explanation of what they thought the rate cut could do in this environment. Do you agree with that . At this point the meeting is a good time. Theyre talking clearly. Its something which they have to decide on themselves. The usual approach will be fine. What are you seeing its hard to get a feel for just what kind of Economic Impact this is having because it seems like the information is probably changing on a day by day basis what are you watching . What are you trying to look to to assess that you first. So theres a tremendous amount of uncertainty. You want to hear what the Health Care Experts are saying and the description of what happens in different parts of the country different parts of the world and explicit and transparent about it and thats what im looking for. To what extent will this spread . What happens in other countries . What happens within the United States. Peter, how about you . I want to look atthe things that im usually looking at. Pmi, Consumer Confidence and see when they start to move theyre going to be pretty dated, no. The bottom line before all of this began is pretty good. So you dont want to lose track of that. In fact, some numbers are coming in and maybe a bit of lag but investment looks a little bit better so keep that in mind you think this is going to be a vshaped recovery at some point . Most likely i hope its not too big of a v. Thats the question one thing that worries me a lot is global trade by various measures has been slowing down awhile we have momentum on the wrong direction on flow of global trade by some measures thats part of the uncertainty job is referring to. You think the fed should wait and take its time and try to figure out whats happening but the market has already jumped to the conclusion when you look at the 2 year, 10 year, even 30 year, theyre anticipating that there is going to be a cut its going to be a big cut and its going to come rather soon how much does that box put that in john lets start with ou thats just fine i am worried about the fed and id like them to take a little time. What its going to do when its q qe4. I want them to sort those two things out and i think they need to take the time in the meeting to do that. Gentlemen, thank you both. Thank you. My pleasure. Millennial investors that favor the online trading system robin hood got a bad surprise yesterday. The platform didnt work at all on the best day for the dow in more than a decade kate joins us now with more. Bummer and youre one of those. So outage at robin hood this week forcing traders to the sidelines during the market rebound. A start up that has 10 million users saying it had technical issues yesterday right around when u. S. Stocks opened. Trading on robin hood was unavailable through the close monday and as of this morning its now up and running but users may still experience some down time. Robin hood apologizing on twitter but thousands responding to that tweet and colorful complaints over questions about compensation for those losses. I spoke to one 30yearold engineer that uses robin hood and he said he bet against the s p through a market short etf he went to cut the losses monday but was stuck in that trade. He was just sitting there watching etf prices go down and eating those losses. Also talked to a former fcc official that says it was unprecedented and will raise red flags for regulators others calling for a Class Action Lawsuit and you click on the mobile apps and here it is joe, 44 pages if you look on page 15 theres a few things that could protect them we have reached up to them as well and they declined to comment. Unfortunate there but for the grace of god it can happen to the best of companies. Stuff happens, yes. I want to jump in with this alert right now. New York City High School, these are a couple of alerts we have from reuters new York City High School is staying closed tuesday after a suspected case of coronavirus in its community the new York City School says that step is precautionary its a precautionary measure its following City Health Department guidelines. We dont know more right now but Governor Cuomo is going to be holding a News Conference at 9 00 a. M. And we hope to pick up on that there. Speaking with scott in recent days and even today and new York City High School is staying closed today after a suspected case of coronavirus in the community and theyre following City Health Department guidelines. Now were on the fair value we were looking at futures still up confusing people even further but thats were looking at the implied open is now down 220. We were just down 70 a half hour ago. All right coming up, in addition to the overall markets, well look at some of this mornings big stock movers but as we take a break, there is consensus among them to extend the current production cut. Theyll meet next week squawk box coming right back quadrupled their money by 2012, and even now, many experts predict the next gold rush is just beginning . So dont wait another day. Physical coins are easy to buy and sell, and one of the best ways to protect your life savings from the next financial meltdown. [announcer] today, the u. S. Money reserve is releasing official Gold American eagle coins at cost, for the incredible price of only 159 each. These Gold American eagles are official gold coins of the United States and are being sold for only 159 each. Pick up the phone and call americas gold authority, u. S. Money reserve. With nearly two decades in business, over a billion dollars in transactions, and more than a half a million clients worldwide, u. S. Money reserve is one of the most dependable gold distributors in america. [announcer] today, the u. S. Money reserve is releasing official Gold American eagle coins at cost for the incredible price of only 159 each. These government issued gold coins are official u. S. Legal tender, made from solid gold, mined here in america, and fully backed by the United States government for their gold weight, purity, and content. Do not delay, call now to purchase your Gold American eagles for the amazing price of only 159 each. Gold is now on sale at prices unseen in years, and this year could be one of the greatest gold buying opportunities of all time. Call now while vault inventory remains, and as one of the largest u. S. Gold coin distributors in the country, u. S. Money reserve has proudly served hundreds of thousands of clients worldwide. Dont wait another minute. Call now to purchase 1 10th ounce Gold American eagles for the amazing prices of only 159 each. Electric car maker getting an upgrade by analysts to a market outperform it was a prior market perform. The target price is set at 1,060. They cited attractive entry prices given the recent pull back and the dominant market position so those shares on the move. Next up, shares of uber around 1 or so premarket 171,000 shares of volume the travel concerns have taken uber down enoughdownside limited given whats priced into the stocks and well end on shares of u. P. S. Higher by a percent on thin volume, getting some help from analysts at Deutsche Bank who upgraded the stock to a buy from hold target price at 119 a share. They cited the attractive valuation but unknown impacts of the coronavirus, sxwroe, a possible risk for u. P. S. Back over to you thank you, dom. Futures dejin. G7 did not call for specific action mike pyle global chief investment strategist at blackrock and well ask you about how to invest globally and what youre telling clients at the same time on any given moment, Something Like this can enter into the fray. The headline again a new York City School will be closed on today after a suspected case of coronavirus was dedetected in its community. Sar academy and high school will be closed, a precautionary measure. To joes point youll get headlines at any given point over the coming days and weeks our advice to clients is to recognize this is an uncertain time, to recognize its important to keep an eye on the longterm of course, and to do two things, one, stay sort of close to home in terms of your benchmarks, to stay invested, but also this is a moment when we have seen some very kind of indiscriminate index level moves that means there are pockets of value opening up and as a result, this is a moment when active managers can step in and find some of the dislocations and potentially deliver. We have as low as 220 when we first mentioned the school being closed and weve improved from there. Weve been talking all morning, mike, you need to know about supply and demand. Its hard enough to figure one or the other supply chain issues in china and you dont know how much, someone sent me a picture of an airport that looks like its definite any different. Atlanta looks like theres not so there may be some people staying home you need to know how long this lasts. When we used to talk about our outlook, wed talk about there being three dbig uncertainties. How deep does the shock end up being. There the question is really around the geographic extent that the outbreak ends up taking on, and the Public Health measures that have to be taken to slow that spread. Secondly we talk about the duration, one place were keeping an eye is china. They look to be more on the far side of the Public Health dynamic, they look to be trying to start their economy are they going to be able to restart it effectively or going to be secondary tertiary outbreaks that require them to take a step back and slow down the restarting of the Economic Activity and third, we talk about liquidity, like this is really important, companies, households are going to be facing cashload challenges, liquidity challenges in different parts of the world, being sure fundamentally sound businesses, absolutely markets have moved so violently in anticipation of a lot of thesish you autos where would the pockets of value be, how would you rebalance into some of these moves . One of the things we advised clients to do is in factor space, look for some of the more resilient factor exposures, places like value, kind of clearly exposed to Global Supply chains, clearly continue to action exposed to the downdrafts around the pressures that come, places that have high quality balance sheets, high quality cash flows, places like minimum volatility, these are resilient exposures that were suggesting clients lean into in an uncertain moment prior to this happening, did things look solid globally and if it were to be transient, tra transitory would we get back to a situation . This was not the economy on the brink of anything that looked pernicious. Globally . Globally and especially in the u. S. , a economy with a lot of momentum in the u. S. And global basis looked to be firming going into 2020 and we expected this would be the year that saw growth stepping up. So the basic underlying fundamentals we felt were in a healthy place coming into this shock and now the question for policymakers, can they provide the support needed over the coming months to help us reaccelerate quickly on the back side of this dont go back to where we were but go a little bit higher, based on some catchup, too absolutely. I think its fair to say that on one hand, in the absence of policy support, some activity is just going to be lost. There are restaurant meals that arent consumed, what have you but if policy can step in, in a concerted way, especially on the fiscal side, that can help fill a lot of that gap. Okay. Pyle, mike pyle, for people that dont know gomer Sergeant Carl just called him pyle have you had that . Once or twice stay away from full metal jacket. Im sure. To the new york stock exchange, jim cramer made it down there and joins us one again. Good time. Thank you did you take the subway or did you take no, i drove down. Did feel that it was just a joy to come on your set. Great to have you wish gottlieb was there, too, that would have been wild. I feel like hes been one of the great truthsayers during this period agree, agree. Jim, you heard the headlines about a new York City School closing, we saw the futures drop and come back off the lows, down 220 and down now 115 what do you think . Were going to continue to see these headlines. Yes i think that one of the things joe asked me about, put in the lows, i think that were still all adjusting to the new world i got the note from Mark Benihoff saying i thought this was pertinent. For the sake of good health lets take a pause on handshakes until the threat has passed. I think these are the memos that are going out and your reaction to the memos, no travel, dont go out if you dont have to its a different world and i think that a lot of business is done over dinners and conferences. Sure. Those are going to go away. Jim we have to go away to catch up in time for the top of your show. Thanks well be right back. Sales tax, different pos systems in all seven countries. And online sales . Thats a whole other system. And different regulations. Therererealal eate e crits,s,. And we have no way to integrate all that . No. But bdo does. Peopopleho k kno knonow o. Oh yeah, you going to place it . Not until im sure. Why dont you call Td Ameritrade for a strategy gut check . Whats that . You run it by an expert, you talk about the risk and potential profit and loss. Couldve used that before i hired my interior decorator. Voila maybe a couple throw pillows would help. Get a strategy gut check from our trade desk. What early traders reveal for the best moves what early traders reveal danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. Officially hitting the us. Virus man the markets are plunging for a second straight day. Vo Health Experts warn the us is underprepared. Managing a crisis is what Mike Bloomberg does. In the aftermath of 911, he steadied and rebuilt americas largest city. Oversaw Emergency Response to natural disasters. Upgraded hospital preparedness to manage health crises. And hes funding Cutting Edge Research to contain epidemics. Tested. Ready. Mike im Mike Bloomberg and i approve this message. Join us tomorrow squawk on the street is coming up right now good Tuesday Morning welcome to squawk on the street. Im Carl Quintanilla with jim cramer, david faber at the new york stock exchange. Futures have been around the block once again, going negative after the g7 statement no call for monetary or fiscal policy action. More Companies Pulling guidance on coronavirus and of course it is super tuesday europe up 2 , tenyear yields around 112 this morning. In the g7 statement on the virus the groups finance ministers and Central Bank Governors say they are closely monitoring the outbreak, adding given the potential impacts on Global Growth we reaffirm our commitment to use all appropriate policy