Transcripts For FBC Varney Company 20240713

Cruise ship is being treated with an experimental drug made by Gilead Sciences. Hes in the Nebraska Medical Center in omaha. Overseas, virus cases linked to italy have spread to five other European Countries, and virus cases linked to iran have spread to iraq, afghanistan, kuwait, oman, lebanon and bahrain. Brazil is testing a man who recently visited italy. If a second test is positive, it would be the first case in latin america. Health secretary azar told congress quote, we cannot hermetically seal off the United States. The cdc says its not if it arrives, but when. Worldwide, economies are slowing, there is a fear of association with anyone who may have been in any way near a Virus Outbreak. Some borders are closing, flights canceled, hotels with any possible carriers, locked down. All right. Now lets show you the markets. Its all over the place. The dow at one point very early this morning was down over, well over 400 points. Now weve got a green arrow showing maybe a gain of 60 points at the open, 9 on the s p at the open, 38 on the nasdaq. Heres a key anxiety indicator. The tenyear treasury yield. Record lows touched again earlier today, but we are back up to 1. 36 . The price of gold, wheres that this morning . All over the place. Down 15 an ounce at 1634. This is going to be a headlinedriven market. By the way, the president holds a News Conference at 6 00 p. M. Eastern. No, ladies and gentlemen, we have not forgotten the debate. How could we . It was a chaotic shouting match. Just watch this. Vladimir putin thinks that donald trump should be president of the United States and thats why russia is helping you get elected so you will lose. Hey, mr. Putin, if im president of the United States, trust me, youre not going to interfere in any more american elections. At least i didnt have a boss who said to me kill it the way that mayor bloomberg i never said that. 150 Million People have been killed since 2007 when bernie voted to exempt the gun manufacturers from liability. Domestic abusers cant go out and get an ak47. I wrote that law. You didnt write that. I wrote that bill. I wrote the bill. Stuart sound bites were rather cleancut. There was a lot more shouting than we just showed you. We will show you the shouting a bit later. That was the debates, just a couple days before the South Carolina primary. That was the debate, but really, lets get to your money, the dominant theme in the show today. The dow down almost 2,000 points in two days. The virus has hit our market. Joining us now, fox news columnist liz peek. Liz, i think the markets looking for a bottom but i think its very difficult to find it in a headline driven market. You dont know whats coming next. Its the uncertainty thats really killing the markets here. We dont know, obviously the biggest question mark for people in the United States, is it going to come here. The cdc yesterday said its not a question of if, but when. I think that really rattled people because so far, the only cases in the United States have been imported intentionally, people off of cruise ships, airlines, et cetera. Look, we dont know how bad this is going to be, but what we are going to see, without a doubt, over the next several days, is People Bargain hunting. If they wanted to buy apple and thought it ran away from them, they will start buying apple, or boeing, or disney, or whatever stock they have had on their wish list that basically, with a market that was up 29 last year, basically was unaffordable. Now people, stocks are on sale and this is what people have to remember. This is a problem, this virus, theres no question its hurting Certain Industries very badly, most industries are not going to be that badly impacted. Growth is a little slower, earnings a little lower, but our economy is still in pretty good shape. Stuart i think its a traders paradise. Buy at 10 30, sell at 10 31 for a dollar profit. Thats why youve got so much volatility. For sure. Stuart hold on. I know you are with us for the rest of the hour for sure. Jack hough, we are looking for a bottom. I dont know how you find it in a headlinedriven market. Its not quite a fire sale on stocks. I agree with liz, i think the market is headed higher ultimately. All we have done here is give up our gains for the year. We are still at 18 times forward earnings. Thats not especially cheap. You could look at past cases, look back to sars and see a bigger drop from the market during that outbreak. On the other hand, back then, you could buy a tenyear treasury paying you 4 . Now as you pointed out, you are at 1. 30 something. The alternatives to stocks are terrible right now. Stuart i think thats a bright spot. 1. 32, 1. 33, 1. 34 on the tenyear treasury, doesnt that point towards much lower Mortgage Rates . Ashley it does. We are expecting a huge surge in refinancing to happen, up already 156 from last year. When you get down to that level it makes it worthwhile to refinance because the cost of doing it will be, you know, offset by the savings on a monthly basis. Exactly what i have been telling barrons readers. If you want to panic over this virus, dont hoard surgical masks, dont buy or sell stocks wildly. Make a panicked call to your Mortgage Broker to refinance at a 15year fixed at 2. 78 . I would say this very low tenyear rate has been talked about again as an inverted yield curve. Its a warning sign. What it really is is a sign that Central Banks around the world are willing to step in and help offset the effects of this coronavirus. Thats what these markets are telling us. We have already seen it. China has stepped up. There will be other measures. Obviously rates are already very low but that is all positive and helpful to this stabilization of the World Economy. Stuart hold on a second. Im sure the Federal Reserve will lower rates. Yeah. Thats the betting. Stuart its built into the market. Lower rates wont fix the supply chain. It wont fix the lost demand that we have already established. Lauren that could cause inflation which a lot of people are worried about. Prices could go up as the economy dries up. There is all this talk of this pending pandemic. Pandemic is the medical term that the medical community is not using it just yet, but wall street certainly is using that term. Stuart okay. Quick check on commodities, if you are referring to inflation. I dont see much inflation in the price of oil and gas, because weve got oil down to 49 a barrel as we speak. Brent is down. Gold actually is down. Theres no sign of inflation. Thats a oneyear low for oil, 49. 47 as we speak. Lauren you cant stock the shelves with product outside of commodities. Amazon is struggling maybe to get their orders for prime day. Stuart you think prices would go up . Lauren it could happen. Longterm effect. Stuart okay. Let me get back to the virus and its spread. Lauren, can we start with you. Where is the spread . Lauren okay. So the spread, actually ash has all the details. I will let him do it. Ashley i have like 38 pages worth here. Let me give you the highlights. You mentioned the man in brazil. He has tested positive which means now that every continent except antarctica has been affected. Stuart the map does not show that case. Ashley this is the very latest. This is changing second to second. The u. S. Soldier is being kept offbase, First Military personnel being tested positive for this. Now in europe, continuing to grow. Italy recording its twelfth death, over 300 confirmed cases. Four children now have the coronavirus in italy. Greece has now confirmed its first case. Iran, very difficult to get true numbers out of iran. The number of deaths, the largest outside of mainland china, although the iranian government is only telling us that there are 12 deaths, 95 cases. That death rate does not really mesh with what else we have seen around the world. The fatality rate of coronavirus is 1 to 2 . Thats much higher in iran. Very difficult to get the real story there. San francisco has declared a state of emergency even though there are no cases there, as have, according to the l. A. Times san diego and santa clara counties. They want to get ahead of this based on what the cdc has said. San francisco in particular because of the large asian population. They say there are many people that go back and forth. They believe its only a matter of time before cases start cropping up in san francisco. And the Tokyo Olympics coming up, set to begin july 24th. Organizers now getting very nervous. Obviously the thought of bringing everyone from around the world together in close proximity for two or three weeks for the olympics, they say they are going to wait until the end of may before making a final decision. Things have improved by then, the olympics goes ahead. Stuart 20 minutes to the opening of the market this wednesday morning and thats the state of play. Some green arrows, very modest upside moves for the dow, s p and nasdaq after gigantic losses monday and tuesday. Heres the one major item of Corporate News that we have for you today. Outside the debate and outside of the virus, bob iger stepping down as disneys chief executive. Disney parks guy, the man who runs the parks system, bob chapek, is the new ceo. Jack, you spoke to bob iger and to mr. Chapek. I think it was last night . I had a call. Stuart as i understand it, chapek is saying the virus is just quote, a bump in the road for disney . Well, i mean, its a good sized bump, put it that way. At the parks business you are talking about a base of operating profit of about 7 billion for the year, and disney has already laid out some numbers in its last earnings call, park closures in shanghai and hong kong. They are talking about 200 to 300 million as a quarterly effect. But thats if things, you know, get better from here. If we see a prolonged effect, those numbers could grow larger. Its a bump but wall street is still trading it like it will be a temporary thing, not a longterm thing, of course. Stuart look at that. Disney up 438 since iger were you surprised that iger stepped down . Not surprised at all that he stepped down. I think hes stayed on, you know, for these extra few years in order to get the fox deal closed and i wasnt surprised by the choice. Bob chapek is very experienced. Hes doubled the profit at the parks over the past five years. He had 19 years of hollywood experience before that. I think hes a guy who really knows the business. I think what people are surprised at is the way it was announced. We are going to have a new ceo, by the way, we already have a new ceo. Usually you say hey, this change is coming six, nine months down the road. I think disney has had too much succession drama in its past and it was looking to avoid that this time around. Stuart well, the virus has taken disney down from a high of close to 150 to a premarket quote this morning of 126. All right, folks, there you have it. We have dealt with the virus, the market and disney. Lets move on to the democrats. Trashing the president. Oh, good. Stuart we got you, liz. In South Carolina last night. And they trashed the president over the virus. Roll tape. The president fired the pandemic specialists in this country two years ago so theres nobody here to figure out what the hell we should be doing. Hes defunded centers for disease control, cdc so we dont have the organization we need. This is a very serious thing. As you see, the stock market is falling apart. Many doctors are saying its just a matter of time before we are going to start seeing this here, and i think the answers as president , what would i do, i would better coordinate throughout my presidency to be ready for the next pandemic and to prepare for this one. This is a global problem. Weve got to work with countries all over the world to solve it. Stuart okay. Andy biggs is with us, republican from arizona. Andy, the democrats, i think they are using the crisis, using the virus, and politicizing it. What say you . I think you are exactly right. These folks dont give cdc credit for what theyre doing, they dont give the president credit for the transparency hes engaged in in this process but also, they will use anything to kind of sully the reputation of the president and frankly, many of them would like to see recession, they would like to see reduction in the success weve seen in the stock market, and they want to do that so they can say hes failed. But the reality is, this is coming from china. China is a communist nation and its not been truthful. These folks havent been truthful and i think that the democrats are trying to exploit this for political purposes and thats really in some ways, its unfortunate when what we really need to be doing is making sure were ready and making sure this president and the American People can rest assured that we are together and united on this. Stuart hold on a second. Liz peek is still here. I know you are chomping at the bit. I am so offended by Chuck Schumer in particular politicizing what should be an event or situation that brings this country together. Chuck schumer was on the floor of the senate yesterday railing about the president asking for 2. 5 billion because the number should be 3. 1 billion. Really . Come on. Thats going to make the difference between having some problem in our country and not . I thought it was absolutely appalling and i mean, andy is totally right. All the News Networks are trying to make this the scariest, most horrible thing thats ever happened to the United States. Remember, the only cases so far, we have imported and the president was very early to restrict travel into the United States and to protect america. So you know, i mean, honestly, we should all be trying to figure out what works, what needs to be done, not taking pot shots. Stuart andy, the president holds a News Conference, im not sure exactly what its at 6 00 p. M. Eastern tonight. Im not sure what format its going to be, press conference or statement, i dont know. What would you like to hear from the president . I think that he should reassure the American People that hes got his best people working on this, that we are organized, that we are united, that he has taken steps such as liz pointed out, travel restrictions which, by the way, democrats typically oppose travel restrictions apparently, but really make this point that we are ready and we are taking steps. I would just tell you something else, too. I talked to medical personnel last couple weeks and i said look, whats the deal here and they said well, one thing we know for certain is that america is better at treating viruses than china and so we may not be perfected but we are really way ahead of most other nations, we spend more than most of the nations including the eu on research. We are working on this now. I think he needs to give that calm reassurance to the United States. Stuart you are from a border state, and it occurs to me that what about people coming across the border from mexico into the United States . Are we doing any kind of checks . Because we do check at the airports if someones come on a flight thats been anywhere near a hot spot. Any checks at the border that you know of, and do you think we should have . We do check, so if we are taking somebody into custody, one of the things they do is they actually do a medical check, medical survey. In my opinion its not as extensive as it should be. But if theres any sign or symptom and thats the problem with coronavirus, you have two weeks of incubation but if theres any sign or symptom, they will actually take steps to try to correct stuart what about legal crossings . The people coming in legally, perfectly okay, constantly, are they checked . Do we have somebody taking their temperature, that kind of thing . Not that im aware of. Thats a problem. Stuart, we have border crossings, some of them where you have 20, 30, 40,000 people entering every day. And im not sure that we are doing enough there. So weve got a lot of places that we have holes in our system, but we can correct those holes, but i mean, this notion that we are going to halt the president s request for 2. 5 billion because you want an additional 600 million is really silly. Stuart hold on a second. For the benefit of viewers who may be joining us now, we are 13 minutes away from the opening of the market, and for the last half hour, maybe more than that, we have seen green arrows, in other words, the premarket quotes suggest the market will open higher this wednesday morning. After a huge decline monday and tuesday. Dow up maybe 80 but its extremely volatile. It goes up and down. As i was saying earlier, at one stage very early this morning, dow futures showed a loss of over 450 points. We have come all the way back and just a moment ago we were up 100, now we are up 70. I think you can expect this all day long. Its a headlinedriven market. Its a traders market. There will be all kinds of people who see a stock go down a couple bucks, buy it, and sell it when it goes back up 50 cents. You can do that if the cost of the sales transaction is zero and it is zero as we speak. Traders market. What do you say . Youre not going to contradict me. I know youre not. If youre asking where the bottom is, the answer is always now because i always say i think stocks are headed higher. I say take because long term, im right 100 of the time. Short term im right twothirds of the time and onethird im early. I dont see any reliable way to predict shortterm lauren the bottom is when we have a peak number of infections from coronavirus, no . Stuart when do you know . Lauren when the numbers start going the other direction. Outside of china, they are growing every else in the world. Thats actually very promising because that does suggest it isnt like forever in all these countries. Look, the problem in china is they lied about it, they delayed giving anyone information. Amazingly, we have one company in the United States now that has a vaccine ready to go into phase one in 42 days. Normally thats a process that takes months and months, if not years. So we can respond. We can conquer this thing. The chinese basically made it take too long. Stuart andy biggs still with us, i hope. President trump has been very complimentary to xi jinping throughout this. Very complimentary indeed. What do you make of that . Well, i think he knows how to work a relationship and hes trying to make sure that the door doesnt get closed any further with xi jinping so that if you cut off the communication and allow it to become even further distorted than what i think it has been, then i think thats an even bigger problem. It exacerbates the problem. That would be one thing. I will tell you this. I think one thing we have seen is if we are going to have single supply suppliers like china, we are exposed to this type of thing and its going to be a problem. So thats one of the things i think President Trump has done a masterful job is trying to bring these jobs, some of these manufacturers back to the United States so we arent just totally reliant on china. Stuart okay. One point couple points here about china and the progress of the virus there. Point number one, the chinese authorities are urging workers, go back to work. We need you back in the factories. But theres a great deal of difficulty in them actually going back. There are travel restrictions, some parts of the country are literally locked down, and theres grave anxiety about going anywhere in a big crowd. Thats item one. They are having trouble getting people back to work for our supply chain. Point number two, they are actually imposing some new restrictions in different parts of the country. For example, in beijing, there is the word that if you go to a grocery store, you should stay five feet away from any other customer. Four to five feet. Stuart that raises the anxiety level, doesnt it . You arent going out shopping. Ashley how effective is that, really . Lauren thats a problem. Assi stuart thats in beijing. Ashley if its crowded, how realistic is it . There was an article about the chinese burning Paper Currency in wuhan province. Why . Because they dont know how its transmitted. The idea is if i touch it and ive got it and you pick up that bill an hour later, a week later, you might get it . They dont even know. That is the extent of the difficulty we are dealing with in china. Stuart we can definitely say chinas economy is slowing down. There are interesting indicators there. If you ever look at some video, Street Scenes from beijing now, theres no longer any traffic congestion. I mean, the streets ashley the pollution improved . Stuart yes, the pollution has improved. Very much so. They are burning much less oil, much less coal. Ashley they are burning cash. Stuart but the point here, bottom line is chinas economy is, in many parts, at a standstill. Shut down. How long it takes to get that back up and running, i simply dont know and neither does anybody. There you go. Can i just provide one perspective . For u. S. Viewers, there havent been deaths in the u. S. Related to coronavirus. If you ask the cdc what should i do, should i get a face mask, they will tell you two things. Wash your hands and get a flu shot. Because we have had more than 14,000 deaths so far from this flu season. And the flu season could last through april. So do what you can and keep things in perspective on what we have seen so far in the u. S. Lauren speaking of treatment, Gilead Sciences have their medication, the First American is being treated with it right now. The nih says this is the most rapid trial initiation in u. S. History. So the size of this trial is expected to be 400 but as we have more patients worldwide with these infections, that is promising. Stuart thats made by Gilead Sciences, at the bottom of the screen. Its at 71. 30 premarket, up 1. 5 . Its already been going up very nicely. Thats their drug thats being used to treat that gentleman in omaha, nebraska. Now, we are talking about the markets all day long and the debate, of course. Heres the market element. Listen to what larry kudlow had to say about the market yesterday. Roll that tape. Markets do what markets do. Long run, i really believe this, our economys in good shape. This virus wont last forever. We have contained it. Long term investors, thats all im saying, im not saying tomorrow or this long term investors should take a good hard look at whether they want to add to their positions in the stock market, if youre a long term investor. Stuart hes right. If you are a long term investor, just walk away from the heat of this virus debate and look to the long term, and sharpen your pencil and find out which of the major stocks that you would like to own and how low they have gone now. Lauren if you look at the s p ip sector which includes microsoft, apple, its near correction territory, down over 9 recently. You can bottom fish and get almost safe haven type stocks on the cheap. Stuart the assumption is always that theres going to be a rebound on the other side when this thing is finally clear. Thats always the assumption. I think its a fair assumption to make. You might just ask yourself is there a recession in the immediate horizon. I dont see one. Is there a reason that Interest Rates are going to rise from here, heck, no. Thats one of the key drivers of the stock market. Thats why i think stocks head higher. Stuart lets get straight to the New York Stock Exchange. Kristina partsinevelos is there talking to the traders. What are they saying . Kristina ive got three anecdotal stories. The first one, i asked the trader how is he feeling. I meant about the market, but he responded hes feeling great, he has no fever. The second comment, you guys did talk about that, bottom feeders. What we are seeing now is people buying the stocks with stronger fundamentals, those with the earnings that came out relative growth, relative strength, and got incorrectly hit over the past little while because of the coronavirus. Seeing that uptick. Then i had another group of traders that are saying you have a morning bump but then it could most likely end in an afternoon fade. This is often what happens. Retail investors have to buy in the morning because they see all the news and are trying to get in on the dip. Lets focus on some of the bright spots. We have Company Earnings we can mention or stocks that have actually climbed higher. Tj maxx being one of them. Look at that, almost 8 higher, 7. 5 . Thats on stronger earnings. Then you have xerox up 2 , also. That has to do with actually strong hp earnings. Often the case when the competitors are doing well. Then last but not least, 3m, nothing as a specific catalyst but this could be the moment where people are buying on the dip. 3m often hit when anything chinarelated happens. I think, we have to reiterate, i know jack brought it up, influenza, the numbers are way worse here in the United States. Always a constant issue. Yet we are not talking about that as often. Seems like the vibe here is still positive but we are very early right now. Stuart i like the bit where you asked the trader how are you feeling and he responds i dont have a cough or sniffles. Quick question to you. At the New York Stock Exchange and around wall street, as you came into work this morning, did you see any face masks . Kristina very good question. The answer is no. However, if you were to land at the International Terminal at jfk here, taxi drivers now are putting on masks once you get into the car and if you say you came from a domestic flight, they will remove it. This is a story i heard from somebody within the past 24 hours. So we are starting to see it more in those types of areas like airports. But i havent seen anybody near wall street Wearing Masks within i would say the last little while at all. Stuart here in midtown when i came in very early this morning, there werent many people around. But no face masks that i could see. Joel shulman is with us. Joel invests in Entrepreneurial Companies. I think, can he hear me . Hold on. Hes just putting his ifb in, little thing that goes into your ear so people can talk to you. Have you got me . I have you. Yes. Good morning. Stuart joel invests in Entrepreneurial Companies. You see any bottoms that you could identify as a bottom for Entrepreneurial Companies . Well, i think first of all, they are still up above 4 year to date. They were 14 . They have come down along with the markets. The markets are currently flat or negative. When we look at the markets, there are a lot of stocks like square, square is a very good company. They get 95 of their revenues domestically. They are off 10 , 11 . We are seeing Companies Like stitch fix, 100 , small cap u. S. Company, 100 revenues, they are off 10 . We are seeing Companies Like cheesecake factory, a restaurant in the u. S. , 100 , u. S. Revenues down 7 . This is an overreaction. You had guests earlier talk about the u. S. Flu. The flu is a much bigger problem in this country than the coronavirus and i think the markets have overreacted. I think the markets give a good buying opportunity here. I think if things continue as we see in political news, its going to end the year higher. Stuart the market opens in 60 seconds and i have to cover it but i have time to ask you this question. Do you see a rebound on the other side . The market rebounds when we have gotten through, whenever we get through this thing, you see a rebound on the other side . I do. I see this as a one, possibly two quarter hit. We are going to see volatility, i think if things continue the way they have with trump gaining in popularity, i think the years going to end higher. I think we will see some bottom here in the spring, maybe relatively soon, and i think we will end the year higher. I think theres a great buying opportunity, particularly for those companies that have domestic exposure. Stuart 20 seconds, are you buying anything today . Yeah. We are. We are rebalancing today and taking advantage of this. Absolutely. Stuart joel, hold on, please. I want more coverage from you. We are about to open this market. You will see a lot of numbers appearing on the screen, because in 20 seconds, wall street opens and this will be the third day of trading, monday, tuesday, wednesday, monday and tuesday we were down close to 2,000 points. Thats 6. 5 . Thats the dow industrials. Lets see how we do this wednesday morning. Ten seconds to go. We are expecting a morning blip up. I see a green arrow, bottom righthand corner. Lets see if that holds. Here we go. It is 9 30 eastern time. We are off and running. Ive got to see the numbers. Right from the getgo, we dont have all the dow 30 open and now we have most of them open and most of them are in the green. Right from the start we are up 111 points. Dont read too much into this. Its the first 30 seconds of business. Im noticing right now the bottom two, apple and disney, they both have china exposure and they are the only two dow stocks that have opened on the downside. Only two. The other 28 firmly in the green. The dow is now up 140 points and climbing. Thats not a huge rebound, lets be honest about this. You are down nearly 2,000 monday and tuesday, a bounce of 145 at the open on wednesday ashley its not a whole hill of beans. This is what happened yesterday, if you remember. We opened up about 100 points, said have we found stability . Not in this environment. Be careful. Be cautious coming in. They got hammered yesterday when they went in and started bargain hunting. There are people again who have made their wish lists and are looking for those companies to hit their targets. There are a bunch now, unfortunately. Stuart we are up 160 on the dow. That is about. 6 . Okay. S p, show me that, please. Where is that . Ashley up. Lauren 1. 7 trillion was wiped out this week from the market value of the s p 500. That gives you perspective on how far we sold off. Stuart the s p is up 18 points. Not sure where that is on percentage terms. Ashley just over half a percent. Stuart half a percentage point higher. Dow is up half a percentage point. I think the nasdaq is up ashley . 75 . Stuart . 75 . Okay. Youve got a modest bounce right from the getgo on the opening bell. Show me big tech. They have really taken it on the chin but i wonder if theres any bounce anywhere there. Trying to get that up. Apple is down. Ashley yes. Stuart a few graphics problems. What a day to have a graphics problem. The cruise lines, have you got big tech . Okay. Well see. The major cruise lines are saying the virus will hit profits. Joel, its been awhile since any comment on the cruise lines . Right. I mean, we are seeing cruise lines and we are seeing the casinos, they are off, for example, wynn casinos off 25 and Las Vegas Sands off around 15 , 20 . Cruise lines, again, will take a one or two quarter hit. Its going to be significant. Thats the thing investors need to realize, there are Certain Companies that are exposed to the china coronavirus and exposed to the supply Chain Disruption but many companies, most companies in this market are being unfairly penalized so everything is kind of dropping. Buying opportunity for investors right now. Ashley look, the big three, carnival, Royal Caribbean and norwegian, all say their earnings per share is going to be hit already, about 55 to 65 cents per share. That is a material impact. Of course, they dont know how far this will go. Also, the other issue is psychologically, are people going to be really wanting to jump on a cruise right now having seen some cruise ships stuck off the coast of japan for two weeks . It may have a negative impact beyond cruises being canceled. Stuart any travel company. Ashley yeah, true. Stuart if you are thinking of going some place, where there is no Virus Outbreak, thats fine and danned ychddandy. Get on the plane, train or boat but if you find other passengers on the plane, train or boat have been to an area where they have the virus, you could be in real trouble. You could be locked down. Theres a flipside of that. If you are looking to put money to work in this market, people might say im going to buy how about buying something that has gotten slammed . I dont think i would go full cruise lines. I think i would go so far as to say caterpillar. This is a stock where fears weigh heavily on the company but people dont watch, there has been a profound structural change in the Profit Margins for caterpillar over time. It has cut costs. Its structurally more profitable than it has been in the past. When these fears another idea might be airlines. Airlines will get slammed, no question about it, in terms of travel. But oil prices are coming down, folks. Thats one of the big variables for airlines. The other day, delta was down 4 . Virgin galactic was up 6 . Yes, its safer if you dont have customers but you would rather have customers. Stuart we are putting winners on the screen. Nasdaq winners at the moment. You have netflix, et cetera, et cetera, et cetera. Can you go back to the winners on the dow, please . Because thats very instructive. Dow winners. 3m, okay. Major company, big winner. Walgreens boot, big winner. Visa, big winner. Microsoft has come back. Boeing is coming back. They are not big percentage gains. There are some winners. What about netflix . People stay home, they are worried about going to a theater, they will use netflix and other kinds of streaming services more. There are some companies that will actually, i hate to say it, be better off. Stuart i hear joel shulman in the distance. What have you got to say . I absolutely agree. Netflix, there are a lot of companies benefiting from people staying at home. Clearly, the hunker down mentality thats going on in china and to a lesser extent, the rest of the world, will certainly benefit some companies. Again, i think this will be a one or two quarter hit. We are going to see come spring, the cases, this problem is probably going to be somewhat mitigated like sars was 20 years ago. Stuart let me talk about with you, joel, google. I dont think theyve got much china exposure. No. In fact, when you get off the plane in shanghai, you are not allowed to use your gmail. This is clearly an example, amazon, same thing. They have some exposure but its not that significant. There are a lot of Tech Companies that did extremely well year to date when we were up 19 , 20 , up until a few weeks ago, many of these Tech Companies, and they have been brought down with these fears of coronavirus, in many cases i think its unfounded. I think theres again, a great buying opportunity. It may not come back today or tomorrow, but i think by year end, we are going to see much higher highs than we had in early february. Stuart by the way, im looking at the screen and i see apple has now come back to the upside. I see green arrow there. Up 1. 73, about a half percentage point. Ashley its interesting, the techs are leading the way in this early time and also the financials. Such a low interest environment, all of the major financials, the banks are higher this morning. Warren buffett pounded the table on the banks the other day. Doesnt hurt that he owns so many shares of them. Stuart lets not get carried away here. This is not the way the market will necessarily close. But in the first six minutes of business, we have now bounced to a gain of 200 points. Expect volatility, ladies and gentlemen. Thats the name of the game. There will be a moment in the next week undoubtedly where theres a case in the United States where we dont know where it came from. Thats going to have the Market Selling off again. Theres no question this is going to happen. But again, i think the right thing for Retail Investors to do is to be steady and have this wish list. There are other companies too that will benefit from this. Blue apron, if you are staying home, whatever. Stuart if you are making your wish list and looking at stocks that have been truly beaten down and you buy them, the assumption is you will come out of this and go up without a doubt. Stuart no doubt about that. Absolutely not. Stuart any doubt we come out of this on the other side and go up . Dont know when, but any doubts . No. I dont. I just want to say to the people who have been selling markedup surgical masks on ebay after clearing out the shelves, have some selfrespect. Get a security license and go to work on wall street. Do Something Better with your lives. Stuart dow up at the high of the day 226 points,. 85 higher. Thats true pretty much across the board. S p is up nearly 1 . The nasdaq is up better than 1 . All right. Did i see what else . Show me some stocks. Biotech. Yeah. Show me biotech. I would imagine biotech would do well. Moderna have got the vaccine . Ashley we talked about this yesterday. It will be tested in april. They will see when they are going to try human tests and see whether the response can be, you know, the immune response will enable them to gauge, you know, how effective this is. But having said all of that, its very exciting and liz said this earlier, 42 days. Once they got the genetic makeup of the coronavirus, 42 days, they can come up with a treatment. But it still has to go through even on a fast track, will not be available until next year. You can be sure it will be fasttracked. Moderna is not the only company. Johnson johnson is also coming in as well as other companies. If its so terrible that all the Drug Companies make profits, how do you expect them to go out and invent new drugs when you are not allowed to make a profit . Lauren moderna for the new cases, the treatments like we talked about moments ago, thats when you have bad symptoms of coronavirus. We keep comparing this, what we know about coronavirus, to the flu. The flu, much more deadly but we know how to treat it. We know what to expect. Stuart that drug is being used on that one american, taken off the princess cruise line ship. Hes in omaha, nebraska, containment ward, so to speak, being treated. Ashley its amazing, it took 42 days for sars. It took 20 months before they did the first human trials on a treatment for sars. So that shows you how quickly they got on to this. Stuart speaking of chinese folks being restricted in their movement and restricted to their homes, show me the chinese social network. 45 a share, up 4. 5 . Lots of companies, lots of stocks, where people are confined to their homes and may use that product like netflix, for example, they are doing well out of this. I hate to say they are doing well out of the virus but they are doing well out of the containment regime that china is imposing. Weibo up 4 now, 45 a share. High of the day for the dow industrials, we are up 256 points, getting on for a 1 gain. Kristina partsinevelos at the exchange, terrific report last time around on the trader with the sniffles. Tell me more. Kristina hes still not sniffling. Hes literally standing next to me. His name is glenn. Hes in good shape. What we are seeing is the market is in good shape. All 11 sectors on the s p 500 are in the green, including energy which we know has been hammered over the last little while. I want to focus on natural gas, though. Please dont be angry at me, im not a weather woman, but Natural Gas Prices are up for the second day in a row despite all this coronavirus selloff and thats because investors are expecting a cold front to hit just towards the end of february so they believe that demand is going to ramp up, then start to trail off in march as we are expecting a milder temperature across the United States heading into spring. Lets talk about one company in particular. I know lauren previously talked about Gilead Sciences because they are one of the First Companies working on a Clinical Trial for coronavirus and possibly one american may have used the drug. Theres another company, u. S. Biotech moderna. They have shipped an experimental Coronavirus Vaccine to the u. S. Government researchers so if its possible, not sure if we can bring up the share price, that is trading much, much, much higher today, about 15 higher and a lot of the chip makers, too, we have to talk about. Many people here on the floor tuesday as well as monday were getting into micron amd because they felt they were incorrectly getting sold off. That comes back to the whole focus of a lot of these selloffs were not due to fundamentals but more so fear and look at that, you are seeing all green, all 11 sectors back in the green. I will throw it back to you. Im sure i will have more stories. Its easy to go around and chat with these guys. Stuart keep them coming. All good stuff. Very good stuff. Keep them coming. Show me alibaba, please. Look at that. We call that chinas amazon. Again, if youve got people restrained in their homes, you can expect some increasing activity and business for Companies Like alibaba. Im not sure how they get deliveries made in a lockdown situation. Look, alibaba is coming back nicely, up almost 3 . Thats a 5 gain on alibaba. It had previously taken it on the chin. I remember alibaba, ive got a little piece of it, alibaba was around 230, dropped down to around 202. Now you are up 211. Theres a come kocomeback story. Bottom righthand corner of the screen, new high for the dow. We have been open 13 minutes precisely and the dow is now up 318. That is 1. 2 . Nasdaq up 1. 6 . S p up 42 points, 1. 3. What was that . Ashley its up, all of them up strongly now. Better than yesterday, more of a comeback. We lost nearly 2,000 points in two days but we are up on the nasdaq 1. 75 . So 153 point gain on the nasdaq. Some people coming back into the market. Stuart yes. Interesting, open for, what, 13 minutes, we have gone up gradually up. I have not yet seen a pullback. Ashley the vix. We talk about the vix. Thats down 10 , the volatility index. Doesnt mean to say its not volatile but its certainly showing signs of, you know, gold is down now 22. So a little more money coming back into the market. Stuart Jackie Deangelis joins us. I think you have been studying what happens to the market after previous whopping great big selloffs. Jackie good morning. Thats exactly right. You know, we have seen people come back into this market after Larry Kudlows gaggle yesterday and said the longterm investor should be looking at this. The president tweeted something similar the other day. People get back in and they buy stocks because they want to be invested in this market and there are deals to be had. Stuart but in previous occasions, the market has rebounded. Relatively quickly. Jackie it rebounds relatively quickly. People feel confident and they do feel confident. Thats what this is really all about. Stuart the assumption is theres a way out of this. At the far end, whenever that is, the economy comes back. The virus recedes. Jackie if fundamentals are strong. Remember, the virus is a black swan event. Nobody can control this. You want to blame anybody, blame china. Stuart do the fundamentals, jack hough. Remain strong after a period of slowdown obviously in china and now i think in europe as well. They remain strong, in fact, we are headed to fastest corporate Profit Growth in the u. S. This year than we had last year. What we are not sure about at the beginning of the year, that might be a soft patch. Turns out with coronavirus when it comes around to earnings calls, every ceo in america will have cover for an off quarter if he or she has one. Stuart talk about a rebound. Look at microsoft. Thats a major league stock. It was a trillion dollar company. Not sure whether it is now at 172. Nonetheless, its bouncing back nicely. 4 higher today. Major move for bigtime stock. Microsoft up 3. 86. Visa going strong there. Those are the dow big winners, 3m included. It changes because the stock price moves but they are all still winners on the dow industrials. Lauren microsofts market cap is 1. 3 trillion and the nasdaq positive for 2020 once again. Stuart okay. Now we were up 330. Now we are up 300. This is what happens in a market like this. Somebody, traders, for example, will buy something which they think is at a major league low, the stock will go up, and they will sell it. It may be 30 seconds later. It may be two minutes later. But they will sell it and bring you back down a bit more. Now we are up just 294, 287. Thats whats happening right now. Okay. Who do we have . We have ray huong with us, Constellation Research guy. This guy has consistently said big tech is going places but last time he was on the show, he told us that china was vastly underestimating the number of new cases, and not telling the truth about the virus. Where do you stand today, ray . I think its the same thing. We have seen reports, five Million People left wuhan without any notice whether they were sick or not. So the denominator seemed to be wrong. I think what we have to look at is supply chain risk and also the demand side and the consumers in china. If you are exposed to demand and exposed to the supply chain risk, you are probably going to get a downgrade. We dont know how long this is going to last. Stuart i think the market is saying, and china is saying the number of new cases is really slowing down. You are down to about 500 new cases a day. It was over 2,000 a day in february. I think, ray, the market has moved on to looking at the impact in europe, where the virus is now spreading out of italy and has hit five other European Countries. You have to figure that into your equation, dont you . Yes, definitely. If thats transmission and that secondary transmission to europe, to the u. S. , to other parts, other regions and africa, which is totally undercounted at this moment, and see what that impact is going to be. Thats what im more worried about, is that secondary rate of transmission. Because when we started out with 50,000, that next number probably should have been about 125,000, because of the exposure rates and were not counting that. Thats why im a little bit less bullish than most folks and a little more bearish than others. Stuart okay. But you are expecting that at some point, the virus washes through the world and we come out on the other side. We dont know when, but you are expecting that we come out on the other side at some point. I do. Then theres going to be a massive pentup demand. We are hoping its q3, but we dont know what that first denominator is. Thats possibly why all the models are off. Nobody knows exactly how many people were exposed and when this is going to be over. Stuart im saying in an editorial a bit later in the program that this is a lost year for china and for europe. Would you take me on on that one . Oh, i agree with you. I think we will see 1 global gdp hit. Stuart 1 . Thats not that much. Well, its not great. But its not that much, ray. I definitely think so. Heres why. Because the supply chains have to be ramped up back, if youve got exposure there and china demand especially on travel, especially on consumption, especially on energy, you will see all those things, its going to ramp up but it wont make up. I agree with you, it will be a lost year for china in terms of growth but it also has a huge impact around the world as we are seeing right now, especially on the Global Supply chains but also on tourism, also on consumer demand, also on luxury goods, especially in europe. Stuart i find the Market Action today really fascinating. As i was saying earlier, we had a high of the day with a gain of about 330 points on the dow. Then some selling came in, and that took us to a gain of 255. So you are batting around here, but nonetheless, we are still on the upside. So you were up 330, then you are up 250. Because somebody sold. Then somebody else was buying at 250 and back up you go. We will see a lot of that. Ashley all day long. Its a good time to buy if you are sitting on an all cash position because everything got corrected yesterday. Good time to go in. I think a lot of folks are still a little cautious because what we are trying to figure out is when the coronavirus part, when are we past that transmission phase and getting to slower new cases. Stuart hold on a second. Jack hough, President Trump, not sure what the format is, but at 6 00 tonight, he either holds a press conference or News Conference or statement to the world. Im not sure what the format is. Do you think there will be maybe some investors just weigaiting throughout this day, wait to see what the president says, then move tomorrow morning after hes said it . In terms of something that will move the stock market . Look, im a big believer the more dominant force in the stock market is Interest Rates. Interest rates are low, the markets moving higher. Could he Say Something thats encouraging to investors . Perhaps. I dont think it will have a big effect. Stuart you dont think theres a big effect . What do you say . The president speaks at 6 00. Any effect . I dont think so. I think its going to assuage Public Opinion just in the sense of like helping people feel better but i dont think it will matter to the markets. Stuart okay. We are still up 250 points. Were up 330. Now up 250. Show me alibaba again, please. I think we are still up about four or five bucks. 4 or 5 , i should say. There you go. 4. 68. 2. 25 . Do we have Michael Zakkour with us . You are a specialty specialist in retailing. You follow alibaba. Are they going to rebound nicely, what do you think . Yeah. Morning, stuart. If you remember when i was on with you last week, i called alibaba one of the most undervalued stocks in the world and i stick by that. You know, if we look at what alibaba has weathered over the last two years between a trade war, unrest in hong kong and now the coronavirus, and they have still managed to stay between that 205 and 230 range, i think there will be a lot of pentup demand. You asked a question about well, thats great if you are selling things online but is it getting delivered. A whole new trend in china has emerged from this called contact list delivery. So delivery people are setting up in front of apartment buildings, they are finding ways to deliver to people that actually havent had facetoface contact and for now, thats kept the online orders flowing. Across the board, all the china tech retail ecommerce stocks are doing well. You mentioned weibo, jd. Com, doing well through this virus situation. Stuart can you tell us of any retailer who will not be bouncing back when this virus has run its course . Anybody who not necessarily wont survive but will not bounce back, retailers . Yeah, you know, i think its more a matter of the retailers who are already doing poorly, already on their last leg, this is only going to accelerate them going down. So i dont think its going to be a situation where we see big retailers who are going to take a massive hit and not come back. I think its just accelerating the winnowing process. Stuart show me a big winner. Can you name a big winner, retailer . Yeah, again, i think home depot posted great numbers. Best buy, im still really high on walmart and target. I think in the end, they are going to find ways to keep their supply chains and logistics flowing in ways that smaller retailers cant. So thats going to give them a bigger advantage. The danger in all this for all retailers, no matter their size or what they are selling, is ensuring that the products are going to get made and shipped and in stock. Stuart okay. Hold on a second, michael. Jack, what have you got . Im looking at tjx. You are up almost 8 . You say good news for clothing retail but wait a second. This is a company that buys overstock merchandise that all the other clothing retailers cant sell. So the fact that tjx is thriving this environment is not necessarily great news for the macys and penneys, the other struggling companies. Lauren luxury is struggling because they have a chinese customer and the hermes exec is saying questions still remain on the local impact of the virus and traffic patterns, they say obviously in chinese malls, havent normalized. Luxury sector with that big risk chinese customer is worried right now. Stuart got it. Can you show me papa johns, the pizza people. Its way, way down, 8 lower. Can you tell me why . Ashley they had to shut down 50 stores in china because of the coronavirus. They say there is not currently material to the results of their operations but of course, the longer this goes on, the more that is going to have an impact, like so many other businesses that have this exposure. Stuart michael, what have you got to say about papa johns, down 8 because of china exposure . I think thats reflective of the news we have gotten from Companies Like apple, burberry, definitely in the luxury industry, luxury players are all really worried about what their numbers are going to look like a year in, because these companies have significant exposure to chinese consumers, making up anywhere between 10 and 25 of their yearly sales. So thats a big concern. On the other side, we are looking at whats happening with amazon, we got news recently that amazon is telling their sellers that they had better stock up in overstock if they have to because they are worried about whether these companies will have inventory Going Forward and whether they are going to be prepared for prime day. Stuart okay. Michael, while weve got you, i want to alert you, im sure you have seen this already, in beijing, the authorities are telling people who go to supermarkets, youve got to stay four to five feet away from other customers. I cant imagine anything more anxietyproducing than that. What do you say . Yeah, well, you know, actually that doesnt sound too bad to me because when i go to the supermarket i tend to play bumper cars with the other shoppers with my cart. But whats offsetting that, though, you look at alibabas fresh hippo grocery stores, you can do your shopping from home via app. You dont have to go to the store. I think we are seeing a lot of people really utilizing that technology and Home Shopping to avoid that type of situation. Stuart okay. Hold on. Ashley some of those italian towns still in lockdown, 40 families at a time are being allowed to go to the supermarket to pick up on what you are saying about beijing. Theres pictures of a vast supermarket with just 40 households going around trying to avoid each other to get their supplies. They go back and the next batch comes out. Stuart we are dealing here overseas. It is absolutely fascinating. But we have asked a lot of our guests this morning, have you seen any face masks here in the United States. The answer is yes, if you go to the international airport. Ashley but no coming into work today. No. Stuart so you dont have that same level of anxiety at this point in the United States. But the worry is that you will see that in the United States. The worry is that every time you hear about an outbreak somewhere, its not the news, its the olds because it takes two to three weeks before the symptoms show up. If you say this thing was in italy, its crossing the alps heading into europe, then you say maybe its all over europe. Thats the thought process. Stuart michael again, please, we have seen the chinese authorities reporting fewer new cases. I believe overnight it was like 503, 504 new cases. Thats way down from the 2,000 a day we saw in january. What do you read into that . Are we past is china past the worst . Would you make that judgment . I think it very well could be that china is past the worst of it. The big question, what really rocked everybodys world this week was the news that it was showing up in italy and other parts of europe and you know, in iran and other parts of the world. So im cautiously optimistic that we may be nearing a peak on this. But i still think we havent seen the worst of it. I really think, though, the good news is this is going to pass. We have seen the evidence of this in other disease outbreaks and once it does pass, i think the growth we have had over the last couple years globally in the united i think this is a terri thing. Temporary thing. I think it will pass. Stuart i want to see what happens in the United States. The cdc says it is not if it arrives here but a question of when it arrives here. 50, 60 cases in the United States all quarantined, contained at this point. The cdc says when more cases arrive. What will be our reaction . I simply dont know what our reaction would be. That could really hurt us. One thing im waiting to see to your point, remember before ebola cases arrived in the u. S. You have seen movies about that. You thought everybody drops dead immediately, no matter what. We had patients treated in modern hospitals and sterile conditions and things like that, they bounced back. I wonder what well see here when you have some of these cases in the u. S. Getting, modern, high quality treatment . Maybe well find out here it is not as deadly as other places. Stuart fatality rate will be interesting if that develops in the United States. I was hearing on different news channels, schools could close. Americans working from home. There is fear that could happen. Were talking about interconnected economy. Seeing supply chains move out of china, coronavirus heightening that. The rest of the world could look at the u. S. Dealing with this situation, theyre drying up how much more exposed for everybody else . That would be awful if it comes to a bad situation here in the u. S. Hopefully not. Stuart were resetting the show. The market has been open for 30 minutes. At the moment were holding on to a gain of 2, 300 points on the dow. I believe this is a headline driven market. It there is not a major headline that moved this market. By the way the president will be holding a News Conference on the virus at 6 00 p. M. Eastern time tonight. Check those big Tech Companies. You have toe follow them, that is where the money been flowing. Theyre rebounding nicely. Microsoft up three bucks now. Apple up 4 at 292. What do you got . These were the new consumer staples. When you were worried you put money they in beer and electric power. Beer is falling off a cliff and electric power is not growing. No matter what happens with the economy we do business with these companies. Stuart yes, we do. How about the big banks . Check them, please. Goldman, city, others. They are restricting travel, executives to europe, specifically to italy in the wake of the virus spread out of italy and to five other European Countries. Check out the price of oil please. Are we still at 49 a barrel. We inched up to 50. 02 per barrel. Historically a very low level. Price of gold was down earlier. Implying that the flight to safety is not exactly over but winding down it is still down 12 bucks an ounce. We have latest read on new home sales, ash . Ashley we do indeed. 764,000 on annualized basis, much better than they were expecting. 64,000 more than they were looking for. Up 7. 9 , month over meant. Sew that is very good. Checking out the median house price, now at 348,002 hunch. Stuart that is the median . Ashley median sales price, new homes. That is up by the way, 14 yearoveryear. Stuart 348,000, median. Half more, half less. Ashley up nearly 20 from a year ago. Prices are up. Stuart that tells you demand is strong. Supply is limited. Ashley exactly right. Stuart theyre doing something about the supply. They will build 764,000. Tomorrow we find out what happens with the mortgage rate. Freddy publishes numbers. Based on a survey that happens monday through wednesday. Treasury yields have tanked. In other words, people will wake up see the Mortgage Rates and go bananas for refinancing. Lauren they already have. Thinking about getting in line, make that call today rather than tomorrow. Lauren newest mort rates affect alltime lows for treasury yields. Down a full percentage point than last year. Refi activity is up 152 yearoveryear. When we get a new rate tomorrow, you can expect the refi activity to jump even more. Stuart could we have a bright spot here . That would be housing. I think we do. We have very low Mortgage Rates, very strong rate of sales for new homes. Existing homes, not that bad. Look, were concentrating on the market and virus, a little bit about last nights debate but if we can find a bright spot well bring it to you. I think housing is a bright spot. Lets see if an economist agrees with us. Lets see if david dietze will say if on one hand this, on one hand that. How many hands does a economist have . Housing a bright spot, isnt it . Interest rates have come down dramatically. I was looking in the green room a minute ago, the Interest Rate on 30 year treasury come down a quarter. Wow, you take a quarter less interest lock in next 30 years. Is that overreaction or what . That will be below the rate of inflation. You know what is going to happen. People say, dave, how do you make a longterm investment today . Hey, right now, yield on s p 500 is about 1 1 2 of 1 more than the yield on the 10year treasury. You cannot find a spot in history where if you invested at that point you didnt ultimately make good money. Stuart okay. David dietze likes housing. Thinks it is a bright spot. Well take it. I will bring in now shah gilani i believe is bearish, isnt buying anything. Whoa, say it aint so, ghailani . It is so, sadly so. You know i have been bullish since 2009. At most intervals we saw some selloff i wanted to buy every single dip. This to me is different. The unknown surrounding the coronavirus changed everything how i see economies. Not so much the market. Market reflection of that. What is happening to the global economies trying to be number one. Were seeing what happened in italy and elsewhere in europe. As economies are hit by the virus. The stock market, all the Companies Whose shares represent the shares of Companies Represented on all the markets are going to continue to get hit because there is just not going to be enough sales. I think the revenue will fall for a lot of these companies. I dont think weve seen nearly the end of where this market could fall to sadly. I think were in for a very rough couple of quarters. Stuart so you doubt that there will be a recovery at the far end of the virus impact, you doubt that . No, absolutely not, stuart. It will be spectacular recovery. I dont think it will be vshaped. Of course it will be a recovery. This is an interim in terms of the market moving higher but the question is how low is the market going to go . How long is the coronavirus fear going to last . How long is manufacturing going to be impacted . Supply chains, how long will they be impacted . What kind of movement in terms of supply chains out of china elsewhere globally. These are unknownses. Cities with tens of millions of people shut down speaks volumes. Stuart this is not like you, shah gilani. Youve been on the program for four or five years. I never heard you say anything like this before. Youre killing me here. No, youre not. Hold on for a second because a major item of discussion is americas response to the incoming virus. Weve heard from the president. He wants 2 1 2 billion dollars, plus a billion for a vaccine. Blake burman is with us. He has details on senator schum irs proposal for emergency virus funding. What have you got . Reporter stuart i was told earlier this morning, Chuck Schumer, the top democrat in the senate, would be putting forward a plan for 8. 5 billion, a democratic request to battle coronavirus. The senator just put forth the details of that plan within the last few minutes here. Youre right. The white house said they need 2 1 2 Million Dollars at this point. Schumer going 3 1 2, give or take times that amount. The question whether or not the democratic proposal to this would fly over here at the white house considering that the president would have to sign off on a supplemental funding request. The short answer to that is no. Speaking with senor Administration Official i was told at this point, there is consensus within the Trump Administration right now the two 1 2 billion dollar figure that they asked the hill for on monday even something essentially a consensus figure. Down the line should they need more money they could ask for it and deal with it then but right now theyre comfortable with the 2 1 2 billion dollar figure. Bottom line the top democrat in washington calling for eight 1 2 billion. The white house request much lower than that at 2 1 2 billion. There doesnt appear to be consensus how all of this copotentially play out. Stuart blake, 8 1 2 billion on the table. We got that. Now, lets talk about the politics of this. Seems to me that mr. Schumer, i mean he is a politician you would expect this, he is anteing up, saying you need to spend eight 1 2 billion dollars. The president is not spending enough. I think he is hedging his bets, if something goes wrong i told you so, it its trumps fault. Lauren is coronavirus killing economy, trump is losing economy, new talking point for democrats. That could be argument that side of the aisle. We need more money, and it will kill the economy which is a big win for the president. Stuart why is senator schumer making that argument . He doesnt want the president reelected. Why he is pumping more in. Ashley awful to politicize it, and kind of hope the coronavirus tanks the economy. Whose side are you on . Stuart i agree with you, but this is demock i. Ashley i understand that. It doesnt make it right. You think if he proposed 10 billion, wouldnt have said we need 15 billion . That is ridiculous. It is a game. Stuart youre right. Ashley i dont like it. Politicizing affecting us all, wanting the economy to tank so it could hurt the chance of president s being reelected. Im not being naive. I know how it plays but i dont have to like it. Stuart there is political angle of it. Mike bloomberg is critical of the president. I dont know his exact wording. Youre not doing enough. You dont have a plan. Youre slow. Ashley they throw around words i find fearmongering. They have no clue what theyre doing. It is irresponsible. It is irresponsible. Stuart the politics of panic. Im not a political guy. Im not a partisan or a joiner but they say voting often comes down who you would rather have a beer with. I saw the debate and i thought about drinking alone. Ashley wellsaid. Stuart wellsaid. I dont want to digress to the debate just yet even though it is a very significant story on our program today. Were really concentrating on this market and reaction to the virus. To the viruss spread. David dietze still with me here. Youre an economist. I shall repeat that. I dont think were going to get much growth in the American Economy the First Quarter and i think the slowdown may bleed over into Second Quarter and you say . The reason they put economists on earth to make astrologists look respectable. That is a Warren Buffett quote. There is a lot of reasons why this economy will actually get pumped up from the crisis. Interest rates and Energy Prices. So look at Interest Rates. We talked about them coming down tremendously. That is shot in the arm to the refi market. Shot in the arm to construction activity. That is one of the big drivers of the u. S. Economy. We focus on the dow but in addition to Mortgage Rates, gas prices. You love gas prices. Gas prices at record lows. That helps the little guy who has to fill up that tank to get to work every day. Stuart not record lows. Youre about 2 heroin 45 National Average and if oil stays at 50 or 45 a barrel. Theyre coming down from 2. 45. If coronavirus washes our shores, Energy Prices will be lower. A lot of people why peoples pocketbooks benefit from this. Lets see what happens. Lets not give up on the gdp just yet. Stuart fair enough but the overall economy will not grow 2 in the First Quarter . I agree with it. Stuart and in the Second Quarter . Well see how it plays out and how long the lockdowns and headlines keep going. Im looking at it from an investment point of view and stocks will go up as long as we start seeing a little bit of improvment. Headlines are not quite as prevalent they were the day before. Stocks starting to shoot up. To that point i spoke to a wall street analyst who studies the mortgage market, relationship between treasurys and mortgages. Time to refinance . I did last week on my house. Stuart says it all. Watch what they do, not what they say. Stuart shah gilani is still with us. I know for a fact he is listening to what all being said here. He is still smiling. You dont think much lower Interest Rates, much lower gas prices will help the economy and therefore help the market . They will eventually but not if the coronavirus will keep consumers from going out and spending f consumers are tied to their homes or their communities, theyre not, you know, moving around too much. Theyre not traveling, theyre not vacationing, i think it will be a huge problem. This is 3 4 consumption driven economy we have. The consumer led the economy higher inches since 2009s especially lately. So if consumers start to back off now because of the coronavirus spread, everything is going to be on hold and that means i think Second Quarter numbers, Third Quarter numbers potentially going to get hit a little harder i think any analysts have expected, or put out so far. Stuart shah gilani, shah gilani, of all people. Were listening to you. Let me recap the market because this is important. The state of the market is intriguing. We open the at 9 30 this morning and the market gradually went up to a gain of around 330 points. I think that was the high point of the market. That is people buying what they thought were bargains, moving the stock market up. At that point people were selling. Maybe they take a 10 minute profit you can do that easily, virtually no cost, but you have to pay the tax. You pay the tax. Down comes the market and we had plus 190. That was the best we had. Now we bounced back up again and were up to 225. So consistently throughout the day we have been in the green. No major selloff after 43 minutes worth of business, after a 2,000 point drop in the last two days. Next, check delta. I think ash has news. Ashley temporarily reducing the number of weekly flights between the u. S. And seoul because of the Global Health concerns with the coronavirus. Latest numbers out of south korea, 12 deaths. Delta cutting number of flights to seoul. Stuart the news in china, the rate of new infectionses is slowing down. Ashley yes. Stuart the news from south korea, the rate of infections is gaining ground. The news from europe italy infection spread to five European Countries and the rate of infection is rising and the news from iran is indeed they have spread the virus across the middle east. You have cases in bah rain, oman, qatar, kuwait. Ashley iran, iran is refusing apparently to quarantine cities. So think about that. I was going to say, coming and going. So there is real concern of the spread of this virus basically from iran. Stuart goodness me. That is quite something. Ashley yes. Stuart now look at this. Now were up 300. Look it, this is what is going on here. People are buying. Prices go up. They sell pretty quickly, prices go down. The bargains reappear. They buy. Prices go back up again. Now were up 308 points. Okay. There is a new headline coming to us. This may be a affecting the market. It is from alex azar, health and Human Services secretary. Whats the headline . Lauren he said in the a congressional hearing all the Infectious Disease, that fund is quote, committed or obligated. So theyre putting money, throwing money at the problem. Stuart he is appearing before congress right now. Lauren right now. Stuart was there yesterday right now. The bottom line is what he is saying, we have got the money. It has been committed. Were not hanging around. It is out there. Were using it. It is not being stored up in some vault someplace waiting to go. No, it is going. Lauren there was daylight yesterday what the cdc and Trump Administration said on our handle of the coronavirus. Perhaps helping the market. Because were back up almost 320 points, comments saying look, we know this is a problem and were doing everything that we can to contain it. Something was said yesterday by dr. Anthony fauci. He said look the issue is not the u. S. It is how other countries handle that. If those infections make their way to the u. S. But we have it under control. Stuart alex azar, lefthand side of the screen testifying as we speak. Now, this is important because the market is responding to how america handles this virus insurgence here in the United States. Investors want to be sure that weve got a firm handle on it. That it can be treated. That it can be quarantined. That it can be controlled. To a large degree, kept out as much as it can. If investors are secure in that knowledge, believe the authorities, thats why you have now a gain of 320 odd points for the dow industrials. Youre back at 27,400. Which means, im sorry, go ahead . Lauren size of the fund was 105 million. It is the Health Emergency Response Fund as we have said before spent or obligated. 105 million. Stuart just as alex azar said we spent the money, it is going to work immediately, senator schumer came out with his own plan saying no, we need 8 1 2 billion dollars immediately. Now remember, it was President Trump who a couple days ago said we want to commit 2 1 2 billion and plus another billion for a vaccine. I think, ash was right, when he said earlier, no matter what the president said, mr. Schumer would say it is not enough. Ashley exactly. Stuart and no matter how much the president says mr. Schumer will say its not enough. He is hedging his bets. Ashley of course he is. Stuart if there is failure down the road it will be trumps fault. Ashley irresponsible in my mind. Stuart were up 330 points. Youre nodding vigorously, david dietze . The biggest threat to mr. Trumps reelection is not on the stage. It is this coronavirus. It will be a tough job, interesting at 6 00 tonight, on one hand he has to say, it will be within control, not to panic but he probably wants to spend 16 billion, twice as much in order to get the job done but he doesnt want to advertise that. If people say i got to stay home, want send my kids to school, well talk ourself into recession. Stuart the chief executive of any nation or state is judged by how he or sheehan dells a disaster in their nation or state. That wit be the judgment placed on President Trump, i do believe. This is a serious outbreak here. Not here in the United States, not at this point. A serious outbreak in china, asia and in the middle east. Recapping . Dow industrials up 325 points. You have goat have got a nice gain pretty much across the board. Nasdaq up 1 1 2 percentage points. This of course pales in comparison to the nearly 2,000 point drop on the dow, 6 1 2 we saw monday and tuesday. Nonetheless, that rebound, if i can call it that, is holding at this point. I have not seen a red arrow since we went on the air, since we started trading at 9 30 this morning. We were on the air at 9 00. Market opens at 9 30. Havent seen a red arrow for the overall markets at this point. Youre smiling . Poor delta is finding a way to sit out the stock market rally. It is not climbing. We know this thing is in the crosshairs of coronavirus. Theyre trading seven or eight times earnings. The world has not invented a new means of Long Distance travel. We dont have Star Trek Technology to teleport. This is still the best rated carrier in the u. S. Stuart just you wait until aoc is Vice President of the United States with the Green New Deal and you cant fly those planes. Take the train to hawaii, why dont you . New high for the dow up 3327 points. 27,423. All right. Okay. Okay. Are we going to run that montage first . Okay. Im goi book to the debate from last night. Understand, ladies and gentlemen, this is a rock and roll show. Were moving very rapidly here. So i ask the producer occasionally what will we do now . He tells me well run a montage of sound bites from the democrat candidates last night. Gives us time to get emotionally prepared. Stuart prepare yourselves, ladies and gentlemen. This was the debate. Roll it. If we cannot pull this party together, if we go to one of those extremes we take a terrible risk of reelecting donald trump. To keep on going we will elect bernie, bernie will lose to donald trump. I am not looking forward to a scenario where it comes down to donald trump with his no, sir tall gay for the social order of the 1950s and Bernie Sanders with the nostalgia for the revolutionary politics of the 1960s. Stuart look who is here . Fresh from the appearance just a few days ago on this program, the first leftist we ever had on the program in, many years. Welcome back amir a sari, surrogate for Bernie Sanders. Good morning. Stuart good morning to you. Ready for this. Always. Stuart nobody questioned your guy and how much he will spend to make medicare for all. Nobody pointed out your guy would take 100 billion out of hospitals and doctors. Your guy was never request heed on how he is going to take 180 billion out of ad 218 billion out of administrative costs for hospitals. Nobody mentioned that. I think thats a blank spot in the debate. How would you answer it . Well medicare for all, first of all is a very popular policy among americans. Stuart that is not the point. The yale study came out a couple weeks ago that said medicare for all is going to save 468 billion a year and save 68,000 lives. Now you tell me what that is worth . I dont know you could put a price tag on that. Stuart youre going to take 100 billion out of hospitals and doctors. You start taking money off doctors, they dont start working. They leave. No. I think vast majority of doctors are doing it because they want to help people. What weve been hearing from doctors in the Bernie Sanders campaign whom all of them support medicare for all in our campaign is that they spend too much of their time in what they call admin time, spending a couple hours a day on the phone with Insurance Companies trying to get them to pay for them treating their patients and they shouldnt be doing that. Medicare for all, singlepayer system makes it more streamlined, makes it more easy. Wiping out administrative costs is a goodhing. Making sure doctors spend more time treating their patients is a good thing. Making sure people dont die because theyre poor is a good thing. That is what were fighting for in the Bernie Sanders campaign. Stuart post that debate the Democratic Party is totally split. Totally split. Well i mean i thought what we saw last night in the debate was five on one against Bernie Sanders and he survived that magnificently. I think he will do fine against trump oneonone when the time comes for that but what we see more in a general way is everybody is know playing this politics of fear against Bernie Sanders and bernie is remaining a campaign of motivation and aspiration and that is what is really resonating with people. Trying to scare people into not voting for Bernie Sanders is not going to work just like trying to scare people not voting for donald trump didnt work. Campaigns are about messages. Campaigns are about top line aspirations and we have that in this movement. Stuart ive not, quite a few of the down ballot candidates that we talked to, candidates for the senate and the house own the democrat side, theyre really worried about your guy because they dont think that your guy will give them any kind of boost. In fact they think that your guy will kill them. Well actually there was a report out of the Senate Democratic caucus the other day said theyre just comfortable with bernie as far as this argument i heard. Stuart seven, that is it. Seven senators. This argument that you made just ive heard i will combat this with this. Bernie has shown that he puts together this multigenerational, Multiracial Coalition that comes out to vote, comes out to vote, people who havent been involved in the political process before. When they come out to vote, turnout is higher as we saw in nevada, New Hampshire, iowa among young people, that will help Democratic Candidates down the ballot because most democratic voters will vote d no matter what. You will have a lot of people coming into the process to support bernie and supporting the d down the ballot also. I mean i dont buy that argument for a second. Everyone is fixated on this like, sort of magical, middle voter who, you know is going to maybe go to bernie or trump or whatever. No, im more fixated on the turnout and getting people who havent voted before and havent been involved in this process like people of color, immigrants, disenfranchised communities which bernie and our movement are bringing in, that is what im interested in. That sort of turn out will be what wins the election not just for bernie but for democrats across the board. Stuart what im about to say i really upset the stock market which im loathe to do, i know you will agree with me here. Uhoh. Why should a communist or socialist care about the stock market. Im neither of those things. Stuart come own. Come on. Im definitely not a communist or socialist. Stuart i think that bernie is on track to get the most delegates and to get the most votes. I think he is very much on track to take the nomination and that will scare the bejesus out of stock market and you know its true. What we know, robert reich, which youre not crazy about as an economist yesterday talked about how everyone is talking about how much bernies policies would cost when really we should talk about how much bernies policies will save. That is what he believes as Award Winning economist. Well see one day, but what we do know that youre right, i agree with you, bernie is going to win. He will get more delegates than anybody else. He is the only person in history of the process won the popular vote in the first three contests. That never happened before. If he wins South Carolina, stuart, it is over. If he wins South Carolina it is over. Stuart he will win california and texas. We dont take any votes for granted. Well work until the very end because this movement is something unique in american history. Well defeat donald trump in november and bring motivation and aspiration and by ideas. Were fighting for working class and were not going to stop. Stuart working class. Man you take me back to socialist england 1952. You really do. Youre the only leftist that i dont lose my temper with. I dont know why that is. I dont. Is it my look . Stuart it is. My haircut . Is it my haircut. Stuart that i have more hair than you do, that makes me smile. From the chest down i think i might beat you. Stuart 15love. That is very good. Thank you, stuart. Stuart im a major supporter of Bernie Sanders because i dont think he can win. I want him to be candidate. I want him to lose. I want to see the face of msnbc when he loses in land slight. That is what i want to see. Im getting vicious. Kristina partsinevelos at New York Stock Exchange. Kristina, were what, about an hour into the trading session. What is going on down there, what are they thinking, what are they feeling . Reporter i have a few more comments on timing. Well Pay Attention to the 11 00 a. M. Mark when the european markets close. Well see movement there. Trader brought up to me 2 00 p. M. If we start see beginnings of a selloff. We could expect a Snowball Effect into the close. Several here still believe there could be a fade later on in the day. I had one trader, john, he is to my left right now, he actually said he is looking at exxonmobil because that stock is getting hammered. He believes there is a lot of room to grow. This is indirect or unofficial survey, so many men on this floor named john. It is crazy. I could name four literally around me named john. Very common trader name. Overall were seeing a lot of sectors in the green including energy which haas been hammered quite a bit. And we have moderna, which is another one too were talking about the coronavirus and who will come out as the winner. Is it going to be Gilead Sciences or mow dean that . Who will come out with a successful Clinical Trial moderna. Youre seeing exxon on the screen. According to one specific trader told me this moments before going live. I will put the blame on him should it not do well. Stuart was it john . John that could be literally everyone. There is one john here, one john there, im 100 serious with you. Stuart find me a stuart. They are a dime a dozen. Reporter what im told. No stuarts here. That is just you, stu. We know you as stu. Stuart i am out raged but that is another story. Kristina, i promise to get back to you and the four johns shortly. Show me oil please. Are we back to, dead on 50 per barrel. Just a few seconds we get latest numbers on how much oil we got in storage, how much we took out of storage, that could affect the price. Do we have the number, ash . Ashley we do. Up 450,000 barrels. Like last week we had another build of 450,000 but were way short. With the economy dealing with the coronavirus, the amount of oil in store would grow but not as much as we expect. That could help push the oil price a little higher. Stuart it did. 50. 16 a barrel. Time we you brought in andy lipow, lipow oil associates. He has been with us many times. Andy, what is your prognosis for the price of oil . This is the important for the oil companies, the drillers and consumers in terms of goose prices. Your forecast, please . The big picture im still Bearish Crude Oil because as weve seen from the coronavirus demand in china is off about four Million Barrels a day. With the upcoming opec meeting next week, the market is clearly waiting for them to cut production. And i think the market will force them to do so. Stuart so well get back to the 40 or 50dollar a barrel range, right . Exactly. Were right there now. We ticked below 49 earlier this morning and the fact is that the oil market remains oversupplied and demand destruction were seeing out of china spreading to other countries is not helping the oil market at all. Stuart what about the price of gasoline . That is a major importance to consumers. I believe were around 2. 46, 47 sent cents a barrel. Where is that going, andy. The good news for consumers is it is going to lower five or six cents a fallon. As we transition into the Summer Season where gasoline is more expensive to make the consumer will see more higher prices. Put that in perspective we were at 2. 39. That is still a good deal for the consumer. Stuart we have news about the spread of the virus in the middle east. It is largely coming out of iran. There are cases reported in afghanistan, iraq, kuwait, qatar i believe, the united arab emirates. It is out there now and that is the oil patch. Could the virus have Immediate Impact and production and export of oil from the persian gulf . I dont think it will have any impact on the production and export of oil because these countries really need revenue. What is actually really scary, a bit ominous is a country like kuwait which is banning foreign vessels from countries like china, korea, singapore, where the virus is. This tends to slow down trade. Stuart one last word from you on jet fuel. Ive not been following it. I take it prices have come down. Is it heading lower . Yes indeed it is heading lower because weve seen 80 of the flights in china being canceled. Were seeing similar amount of cancellations in transasian travel as well. So this is good news for the domestic carriers like southwest, frontier, spirit, jetblue but the flipside is of course delta, american, united are taking a hit because those transpacific flights are getting canceled. Stuart andy lipow, as always, thanks for jumping on the show, very short notice i understand. We do appreciate you being with us. Okay. Let me take you away from the virus, the market and show you disney because rather surprisingly, everybody was taken by surprise, being bob iger steps down from the chief executive officer role after 15 years. The man was a major success running that role for disney. The guy running the parks division, he is stepping in as the ceo. Eiger is not walking away completely. He is now the executive chair at disney. Lauren and the creative director. He will still have a happened as visionary for disney if you will. Disney price under eiger continues 2005, including recent selloff from the coronavirus is up 400 . More than that versus 55 for the broader market. Not bad for shareholders. Stuart is one of the best executives for his generation. Worked absolute wonders for disney, rapidly expanding with a series of purchases. Lauren most powerful figures in toys, hollywood, streaming and sports, what he has done. Stuart a title i will take it. I think bob chapek is great choice. He will report to iger for now. There is issue of a former chief, is hollywood kingpin, how can he live up . That is exactly what people said about bob iger with regard to Michael Eisner 15 years ago. He certainly lived up. Stuart i knew him, actually. I had dinner with him one night many years ago. Quite an argument. Ashley oh. Stuart different story entirely what do you make of bob iger ashley you cant lead like that. I think he is tremendous. Lauren just documented the track record. I think this is a model transition because he is not walking away as you point out, stuart. He is staying as executive chairman. He will still be involved. New guys coming in, those parks are fantastic. Several rides youre able to sell independent of getting the all park pass. Apparently this thing to make sabre swords sold out already for march. The parks are unique. Becoming the biggest profit driver at disney. Soon will be bigger than television. Stuart that is extraordinary. That happened under bob chapek. People say about what about the streaming business . The parks are the biggest story for disney. Stuart the demand to go to parks are high despite very, very high prices. No elasticity of demand. Ashley goes up. Lauren chapek is criticized not having Creative Vision or charisma of bob iger. Would you say that is true and should we be worried about it . I wouldnt say so because before he ran parks and Consumer Products did a lot of distribution for studios, that included theaters and home. So he has plenty of hollywood experience and he will be tutored by bob iger for 22 months. Stuart point out, that is the high for the dow of the day. Were up close to 400 points after losing nearly 2,000 points in the previous two days. But that, consistently been in the green for all three averages since the market opened one hour and six minutes ago. Now lets look at apple, please. What are they doing . Look at that. Straight back up. When we opened the market, apple was one of the two dow 30 losers. Now it is a significant winner. It is up eight bucks. 296 per share. Shah gilani, come back in please. What do you make of that . Dont you wish you had bought it . Saidly think there is plenty of time to buy. I think apple is probably the best bellwether of the coronavirus effect in china and in terms of u. S. Companies because of the exposure that apple has in china terms of manufacturing and sales and also whether their supply chain will be enough to impact sales here and globally. China is the leading focus of the coronavirus but i think apple is the leading stock to watch in terms of impact much coronavirus. I like to see the company do a lot better. I just got, i have a very bad feeling that theyre going to be impacted for the next couple quarters because of think, okay, you missed it. [laughter]. Lets look at microsoft. I will be rub it in shah gilani. So far i missed it. That is correct. Stuart shah you missed it. Shah, you missed it okay. Are you sorry now . Not yet. I may be. Stuart let me change the subject completely for a second here because one theme weve been looking at on the program is americas response to the virus. Earlier today we had senator schumer demanding that the government spend eight 1 2 billion dollars to combat the virus. Blake burman, come back in, i think the white house responded to the rift between the cdc and the white house. What are they saying . Reporter some concern that cdc scientists professionals are not on the same page with the white house and coronavirus. White house, members of Administration Senior level highlighting in some cases that the coronavirus is contained. There is no risk or very low risk here in the u. S. In the immediate future. However folks at the cdc warning that Community Spread is likely at some point down the line as well. So there are questions of, are the administration and cdc on the same foot . The white house is saying that is not the case. A spokesperson over here at the white house, judd deere saying following moments ago trying to shut down the narrative, quote, unfortunately were seeing a political effort by the left and some in the media to distract and disturbing the American People with fearful rhetoric and palace intrigue. He suppose on to say the virus remains low risk domestically because the containment actions taken by the Administration Since thes 1st of the year. The white house sy h is saying were doing what we should and president is doing what he should. No sort of split. I also want to know, dr. Anthony fauci, top Infectious Disease scientist at National Institutes of health he was asked this morning what should President Trump say tonight, 6 00 on east coast here at white house when asked questions and addresses the nation about the coronavirus . This is what fauci said, quote, at the present time things are under control here but realistically we need to be prepared for the possibility and makely likelihood to see more cases here and the degree that we can contain them will determine the impact on the country. But that is the recommendation from the nih as to what the president should say to the country tonight. Stuart . Stuart blake burman, good stuff indeed. Thank you very much for that. A quick recap of the market. Were holding on to the green arrows, not for a moment today have we seen a red arrow for any major indindicators, were up 350, 360 points for the dow. How about the flight to safety . Were looking at 10year treasury yield. It is very important. It slipped down a little bit to 1. 35 . Youre still pretty close to record lows but 135 as opposed to 132. Price of gold, earlier today it was down. Where is it now . The price of gold is . Wave your magic wand. We dont have it. Ashley survey says . Stuart down 10 bucks. 1639. There you go. 1639, down 10 bucks on gold. So interesting scenario developing here. We have a bounceback of sorts for the market and it has held. Still got the price, the flight to safety for the 10year and, moving a little bit away from gold but now, weve got a development here on on mass gathers in europe . Ashley soccer, coming out of italy, a bunch of sporting events were canceled in asia but now europe. Italians said five games will be played behind closed doors, no one in the stadium including versus milan which is big game. Theyre putting out advisories how fans get refunds. Six nations rugby game between ireland and italy, played in dublin, was supposed to be played in dublin saturday has been canceled of fear of italian fans traveling to watch the game. That has been canceled now. Stuart that is it. You cant travel away from any area that is a hot spot for the virus. You may be a carrier. Ashley could be two weeks to show symptoms. Lauren market is climbing higher. Up to 420. Ed yardeni, extreme government responses containing will create a pandemic of fear, that increases risks of he says a bear market in stocks. He says the fear is worse than the department. Stuart state department put out advisory for italy. It is an advisory. It says exercise extreme caution. Theyre not saying dont go but theyre waving the wand, saying extreme caution please. With one more item on the virus. Latin americas first virus case has been confirmed in brazil. Ashley also following 20 other people they believe could be infected. This is coming at carnival time in brazil. Talking about mass gatherings, very hard to contain something because often the horse has already bolted. Stuart by the way, confirmed case in brazil is a man who traveled to italy. Ashley northern italy, yes. Stuart there you have it. Nonetheless, the dow still high of the day. Were up 406 points as we speak. That is the high of the day. Can you show me alibaba . Because thats chinas amazon very much in the news. Im wondering if that well, it has gone up. 6 higher. 212 a share for chinas amazon called alibaba. Okay. Now there is another new high. Youre up 425 points on the dow industrials. Shah gilani, you know what im going to ask you, you know what im going to ask, dont you think we might have hit a bottom . I would love to think we hit a bottom but as i said until we see a reversal of spreading rate of coronavirus i dont think well see a bottom. This is reminiscent of two weeks ago when we hit alltime highs. There was news out of china the rate of infection had turned around and was now diminishing. That became fake news. But prior to it being discovered it was fake news. What happened was it drove markets higher. News headlines got picked up by algorithms, market went higher. Investors jumped in. Investors think worst is over. Market gets back on track where it deserves. Things go higher, which i would have thought happened too. We see that wasnt the case in terms of infection rate in china. It was actually opposite of that. Things were getting worse. Now what have we seen . Market fall off tremendously. Not unusual to see a move like this today. We saw this latest move up based on news. So again i think starts with the algorithms. Investors look to say maybe hard getting back in, things will turn around. This would be a great time to get back in. I dont believe this is the end of this whole coronavirus story. Stuart that was a long explanation why you dont think weve hit a bottom at this point. So i ask the question to my colleagues around the set here, first of all to jack hough. Is this a bottom . I thought so earlier. The effect could get worse for the economy. Stuart of course you dont know. You just absolutely dont know. Here is what i would say. To shahs point we could see worse news on economy. Could see markdowns on Company Earnings. What would we expect to happen . We expect the fed to step in to cut Interest Rates. Why . That would push down yield at longer end of the curve. Reduce rate of borrowing people active. 10 year treasury didnt wait for that. Took action on its own. Yield fallen half a point. We have the stimulus. Stuart are we close to a bottom on the market . The bottom was breakfast time, stuart. Were beyond the bottom. Were on our way up now. It is brunch time. Stuart really . Ashley next headline. Stuart david dietze, economist, on one hand and on the other hand, bottom . No one knows, okay . No one knows the exact path of coronavirus. What we do know the market has come back from every single dip over history through february 12th. We know that competing invests are very, very expensive right now. So there is no reason to hang in there. If you have investor horizon longer than end of First Quarter, even the Second Quarter, take advantage of the market here. Here, apples trading 21 times earnings. That is four quarters times 21, that is 84. So you will get upset about one or two quarters when youre paying for 84 quarters. Stuart did you hear that, shah gilani . The market always bounced book from a dip. He is still smiling this guy. You know you missed apple. You know you missed microsoft . I missed them all, stuart, youre correct. Thanks for pointing that out. But i still contend i may have a chance to get in lower, perhaps considerably lower. If the market will turn around here if the bottom is in, great, i dont mind buying all of these stocks at higher prices, i absolutely dont mind f the coronavirus is contained, the market will get right back on track. Economies get back on track. We may see a v recovery. I dont see that happening right now f that happens i dont care if i have to pay higher prices. I will get back into these stocks. Stuart okay. Stay there, shah, were not done with you, im telling you right now. On the screens, hold that board there. Apple is up nine bucks. Microsoft is up 4. 50. Facebook up 4. Amazon up 36. Alphabet google up 24. In percentage terms pretty good. Apple has the best gain, that is a 3 gain. Big techs are bouncing back. We dont know if we hit a bottom. Ashley because we have no idea where the coronavirus is going from here. To your point at the beginning of the show were dependent on every headline. I hope it is bridge much time. I would love a mimosa. Lauren can argue tech is bulletproof and safe haven, i. T. Sector down 9 coming in to today, second worstperforming sector in the coronavirus selloff but most of them are coming back. That is all the damage that they took. Stuart let me ask a rhetorical question. Ashley yes . Stuart suppose you have a nice 401 k or ira and youre able to trade the stocks within those pension plans, whats wrong with at 9 30 this morning at opening bell you buy some microsoft at 170 . That was price this morning at opening bell. Ten minutes later at 172, you sell it . You have made 2 a share. You dont pay any tax because that is in the 401 k . That is in your ira. You dont pay Capital Gains if you make a gain within those pension plans. You can trade on a moment to moment basis. It costs you nothing. Trades are free these days. Obviously depending on your broker, but most are flatout free. You the individual invest can trade the market as no cost. Where am i going wrong . Dont do that for your 401 k . If you like microsoft for the long term. What are we talking about here . This is not a casino, here . This is retirement money. You dont want to be jumping in and out of stocks. Every stock on the list, all the big tech names. Theyre up a ton. I can point to everyone, saying prices are not crazy here. These companies are reasonably priced, relative to the growth prospects. A lot of companies are growing top line at 20 rates yearoveryear. That is growth of a young company. Stick with microsoft. Buy it. Ashley too late. Stuart im the idiot who sold it. Stop laughing ghailani. Stop laughing. I sold it at 15. 157, far too early. We have a star joining us from the fox news channel. We have Martha Maccallum, the story with Martha Maccallum is great show. Thank you for that nice diction. Stuart it was free. Just like a trade. Stuart youre in the political arena now. Youre fox newss person with bret to cover the election you used to be in the financial circles. I worked for the wall street journal and on floor of New York Stock Exchange. I always come here, i love that conversation. Stuart we want to hear you speak about the market. Whats your perspective on this market right now . You know it . I was reading a report about coronavirus from analysts looking at it in china. P obviously difficult to get your arms around this. You dont know if information from china is accurate. Reports show that the numbers seem to be dropping a bit in china. When you look at ground zero of the problem looks like it is declining a bit. You have the spread happening in the other countries. That is a huge question mark. It will take a little while for us to get a handle on impact of this. I think people are cautious i perhaps optimistic, which is one much the favorite phrases we like to use covering the markets. Certainly gives you both sides of the equation. Weve seen a selloff. Stuart Martha Maccallum, voice of calm. Organized and needed on program. I will switch topics here. Okay. Stuart debate and politics. Not calm. Stuart the debate, what im calling the politics of panic. Because on that debate last night we have got a sound bite. Lets roll that please. Martha can comment. Roll it please. We dont have it yet. You know what im talking about. I do. Stuart mr. Bloomberg says look, he doesnt have a clue, doesnt know what he is doing. Various commentators saying president was slow to react all of this. I call that the politics of panic. Am i going too far . If youre americans, it gives you a lot of distrust in all of these people. What everyone is saying on both sides, look we need to turn to our, to the president at this point. We need to get behind the plan. We need all make sure doing what we can to contain this virus. Chuck schumer started slinging arrows at president , without, i didnt get a great sense what he said he had a real handle what is going on. That feeling, if President Trump is doing it must be screwing it up. That is dangerous. This is smart of the president to do a News Conference tonight at 6 00. Stuart senator schumer upped the ante. He is out this morning saying we need 8 1 2 billion dollars. What is that coming from . What is the calculation . Stuart where is the math . Exactly. Stuart we have the sound bite from the debate, politics ever panic. Roll tape. The president fired the pandemic specialists in this country two years ago. So there is nobody here to figure out what the hell we should be doing. [applause] he defunded centers for disease control, cdc. So we dont have the organization we need this is very serious thing, as you see the stock market is falling apart. Many doctors are saying it is just a matter of time before well start seeing this here and i think the answers as president , what would i do . I would better coordinate throughout my presidency to be ready for the next pandemic and to prepare for this one. This is a global problem. We have to work with countries all over the world to solve it. Stuart nitpicking, backbiting on the issue of the virus. Wouldnt be refreshing toe hear one person on the stage look, there were efforts to shut down quickly, on flights, contain people on cruise ships, to try to identify the problem. I was listening to dr. Anthony fauci, who is always a good source on these issues. He was on with bret baier last night. He says, look, this is a serious, serious situation were dealing with but we believe we contained it to the greatest degree possible right now. Are there question marks down the road . I think were close to Halfway Point on this, understanding it. I think it would be great to hear democrats on the stage, pull together, to make sure the virus is contained rather than attacking each other at this point. Were not sure what that does. Stuart that would be nice. You have a very busy day. Here is the question, what do you think, what do you expect from the president tonight . Well, its a good question. Stuart speaking of 6 00, your show is on at 7 00. Were on at 7 00. I just heard Steve Scalise talking about the expectations for tonight and i think well hear a little bit about the plan and money expected to be spent on the plan and assessment of the government about where it stands now and things people can do, common sense things people can do perhaps in curtailing travel and normal things you do, hand washing. Avoiding certain situations. I heard Charles Payne said we dont want to get into panic situation in the country where people stop going to the malls and stuff, doing what they are doing. This is a scary situation. Stuart very important presentation from the president. Absolutely. Stuart how the chief executive of a country or state handles impact of event like this, has a lot to do whether that person is reelected. Im sure it does. Im sure theyre looking at it from a Campaign Perspective as well, now you handle this will be very important, President Trump. Stuart thanks for being with us. I dont know how you do it. Youre on day h the air all the time. Martha, thank you. Thank you. Stuart shah gilani with us. Do you have any word on this . I will contend there are plenty of bargains out there if anybody wants to jump in now. If the market turns around, if we hit a bottom, if there is reversal of infections of czars, especially china i will jump back in. The stocks of Industries Hit hardest with runs that will bounce back the fastest. They are the cyclicals, the gaming companies, the airlines, also to a degree some industrials. Stuart wait, wait, wait. Did you just reverse yourself . Are you now no. No. There are areas, there are industries within the market right now that are at Bargain Basement levels. I think they will tend to go lower. I dont think were done here because yesterday in terms of the Dow Jones Industrial average the dow broke through 27,000. Only by a few dow points. To me that was the first, latest line of defense in terms of support for the market. Breaking through that doesnt bode well. Generally when a market breaks through its support, Something Like that, it happens to retest that i would say 90 plus percent of the time, markets retest the lows. If we retest those lows we have a i still think, i still contend we have yet to see the bottom in this market. I think we actually regrettably have a good ways to go before we see the bottom. But i would love to see us turn around. I would love to get in late at higher prices. Stuart hold on a second, shah. Im looking at the market. Im seeing a consistent gain of 400 points for the dow pretty much across the board. About 1. 5 up. To Kristina Partsinevelos at the New York Stock Exchange. What have you got for me . Kristina remember you asked if i had seen anybody with masks around wall street and the answer was no . I want to focus on masks and mask makers. Apt are soaring today, alltime high. Same thing with lakeland. I want to focus on apt, though, because they are doing so well people, i have been following the stock for quite some time. The moment we talked about the coronavirus i thought okay, what stocks will tend higher. They have been climbing higher. You have seen the share price for apt up more than 30 this morning alone and thats causing lakeland, another medical mask maker, to also climb higher. You can, as a retailer, a viewer of your show, you go to a pharmacy and try to ask for masks, they are selling like hotcakes. You have home depot type stores in neighborhoods, i live in hells kitchen, they are advertising face masks in the front of the store. This is still something that seems like traders like but i have been hearing some talking about shorting the stock now that its climbed relatively high. The company did say they expect higher than normal Gross Margins in the First Quarter so that would be this quarter, as a result of the coronavirus and im not sure if we did show it but if we could show the price of those two stocks. Apt and lake, two companies that are trading higher because of the face masks and again, we talked about it about 20 minutes ago, 11 00 a. M. Is when european markets close. We will be looking for liquidity in one minute, more specifically, and then you had just, we were talking about support levels for the s p 500. I am being told the 200 Day Moving Average is 3118 so that is a level. If we start to see the s p drop, that could be some type of movement. There you go. Theres the stocks i was looking for. Alpha, 26 . You would have been really good if you got in just last week when it was around five, six bucks. Stuart who knew. Who knew that it would develop in the space of a week into Something Like this we have got going right now. Great stuff this morning from the exchange. Always good stuff. We appreciate it. All right. It is now bang, 11 00 in the morning, eastern time, that is. This is wednesday. Top of the hour, catch you up on the markets. First, they are all up. They are all up 1. 3, 1. 4, 1. 7 . Youve got a nice rally going on here but it in no way makes up for the losses of the last two days, but it is a bounce. The president will be holding a News Conference this evening. That will be 6 00 p. M. Eastern time. Wait for that. He will address the virus. The state department has issued a travel advisory to italy. I think the expression is use extreme caution when planning a trip to italy. Also a travel advisory to iran. I dont know what the nature of that is. Ashley coronavirus and danger of kidnapping. Stuart that, too. Ashley yes. Stuart dont go. All right. Health and Human Services secretary on capitol hill asking for more funding to fight the virus. Senator schumer earlier this morning said we should be putting 8. 5 billion aside. 8. 5 billion. A couple days ago, the president suggested 2. 5 billion. The criticism is that no matter what the president said, senator schumer would say i want more. If the president had gone on and said i want 20 billion, mr. Schumer would say i want less. Theres a political discussion going on here, backlightibiting. The tenyear treasury, 1. 34 is the yield. Its actually down just a fraction there. That means that money is going in and thats forcing the price up and that puts the yield down. 1. 34 is pretty close to the alltime low. I think that was 1. 32. Youve still got a flight to safety. How about gold. It was down earlier. Its down now 10 a share an ounce, i should say. That means that is not actually acting as a flight to safety this morning. How about the financials. Goldman sachs and other banks are restricting travel to europe, specifically to italy. Thats if the coronavirus spreads across europe. There have been five European Countries which have been contaminated because of travel from italy. Cruise ships really hammered by the virus. A 15th diamond princess passenger has tested positive and is being monitored in nebraska. One passenger from that ship is being treated with whats the name of that drug . Remdesivir by Gilead Sciences, hes being treated in an Isolation Unit in nebraska, omaha, actually. Lets see how that turns out. Hes being treated and isolated. Now, we have some winners out of this. Boeing is up nine bucks. 3m, 4. Apple is up nearly 8. Microsoft, a gain there of 4. 42 per share. Netflix is a winner, 17 higher. The theory there, of course, is you are trapped in your house somewhere in the world, you will watch netflix and up it goes. Tjx, tj maxx is the name of that stock, up 7 per share. Netflix is up 4 . Look at that. Nvidia, another big tech, they make chips for video games. You play video games when you are trapped in your house. Up goes nvidia. Oracle is up as well. Look who is here. Got a shot . Yes, we do. Elizabeth macdonald is with us, host of evening edit. Welcome to the show. Now, i think this markets looking for a bottom. I dont know whether we found it or not yet but its looking fairly promising in the very early going today. Whats your opinion . Liz youre right, it is looking for a bottom and its difficult find the bottom because when the news comes out about the severity of the coronavirus, it then tries to find the bottom. Whats happening is this is global contagion of fear as well, because we dont people dont understand the severity of this virus. When we have been asking our experts on the evening edit why is russia closing the border with mongolia, 14 countries around china are shutting the border to china, they are saying that because this virus causes not just respiratory failure but multiple organ shock. It causes multiple organ failure and sepsis as well. That means they see people literally dropping. That scares people. We also are seeing coming out of Washington State and Ohio University a new study that says the problem in china may be up to ten times worse than reported. Remember, people are asympt asymptomatic and can spread this contagion. We backed up and look, okay, compared to other outbreaks, sars was contained within eight months time. It was contained. Right now, its about hard decisions, tough decisions. During the 6 00 hour, the president will be holding a press conference. We want to see the tough decisions he will make. Will he say yes, we will stop travel of individuals coming in appe and out of china or iran, what are the tough decisions he will make and now we see the democrats of course, this is a political headline, stepping in to make, you know, get headlines off of this and mitt romney as well is doing it, saying it might be unseemly to do this when people are getting very sick and dying. Stuart we dont know when this Virus Outbreak peaks around the world so we dont know when we come out on the other side of it and we dont know what the economy and the market will do when we do come out on the other side. Liz thats a point. Theres a lot of known unknowns but quickly, this has been one of the calmest bull runs in history and the longest bull run, longest economic expansion. We have had maybe five dozen or so panic attacks in the interim. We only had a few corrections to the downside so thats broader context. The s p is up 44 since the december 2018 lows. Stuart thank you, liz. Hold on for a second. Ash, youve got news on the virus. Ashley politico is reporting the white house now considering an appointment of a coronavirus czar to help basically coordinate all the expansive response. We may hear that from the president tonight. We will wait and see. This is politico reporting that maybe a coronavirus czar will be appointed. Stuart it seems to me america is trying to organize a very strong response to this. Its already been organizing for the past week. Now its hitting its stride. Maybe a czar appointed the overall chief of the whole thing. Ashley someone who coordinates it minute to minute. Stuart the market is holding to a gain of well between 300 and 400 points. Look who is also here. We bring in all the stars on this show when you have a day like this. John lonski is one of the stars, an economist, chief economist at moodys markets. Chief markets economist. Am i right in saying look, we are waiting to see when we come out on the other side of this, when the economies around the world are no longer shrinking, when do we come out . I think thats what the market is waiting for. There are some interesting developments. Liz was talking about the fact we had like five major selloffs of u. S. Equity markets during this period of economic recovery. Whats fascinating is that for four of those major selloffs, the high yield bond market did not fall apart to the extent that would be predicted by the jump in the vix equity market volatility. Whats happened thus far, theres a selloff in high yield bonds but its been very very mild. The high yield bond market, some say is smarter than the equity market. What the high yield market is telling me is that though this event has slowed down the growth of corporate earnings, it is not necessarily going to trigger an outright contraction of corporate profits that would be disastrous for corporate credit. Another thing. Base Metals Prices, yesterday big selloff in the equity side. Guess what the price of base metals, average price went up 1 . The price of copper went higher. If the World Economy is going into a tank, you dont see base Metals Prices move higher. Stuart long time since we checked base metal prices. Very good point. Its an industrial metal, an indicator. Uses a lot of industrial metals. Stuart before Liz Macdonald leaves us to prepare the evening edit i want a value judgment, a subjective judgment on your part. Do you think we are near a bottom for the market . Liz the current bottom, in this trading session or today, or just stuart across the board. Liz because of this. Okay. Stuart because of the virus. Liz no. Stuart not yet . Liz not yet. But we will bounce back. Stuart its still a bit further down to go . Liz i think so. Stuart you are in league with shah gilani. Thats what hes been saying. Thanks very much. Liz delighted to be here. Stuart we value your presence and will watch tonight because you will be running the president. Liz we will be covering it fullon. Lot of guests. Great guests. Stuart lets see if we hear about that czar being appointed. Thank you, liz. Now then, we have news from the National Retail federation. What is it . Lauren they predict that for all of this year, spending will increase to 3. 9 trillion, a gain of between 3. 5 and 4. 1 , despite uncertainty from the trade war, the election and coronavirus. One more thing. The ceo says this. The nations record long economic expansion is continuing and consumers remain the drivers. Stuart whoa. Thats lonski, comment on that. Good news on Mortgage Applications for the purchase of a home. Latest week, this is early february, that index was higher. Its up 12 year over year, the past four weeks. Thats a positive development. Perhaps its much too early to give up on the american consumer, according to Mortgage Applications, and what lauren said about from the National Retail federation. Stuart okay. He snuck up on me. I didnt see him coming. Hes a stealth guest. Pete hegseth. Makes me extremely nervous, it really does. Okay. I want to talk to you about politics. Not the market. I want to talk about politics. This debate last night, utterly chaotic and i think it is still a divided party, horribly split, and i think Bernie Sanders is going to get the nomination. You say what . Thats why all the attacks were trained on him. The big loser last night was cbs. You cant run a debate like that that isnt controlled, where you cant actually have answers. I was at my sons basketball game for the first 15 minutes trying to listen, i couldnt tell who was talking and thats a problem if you are trying to create a coherent narrative to take on donald trump. That helps donald trump when all of them are raising their hand trying to answer and talking over each other. But clearly, Bernie Sanders, you can come after him but he has answered every question about socialism for 40 years and has never backed down. He didnt win last night, but he punched back hard enough to maintain his position. Clearly it was a crowd packed by biden people and packed by bloomberg. Stuart he was booed. Bernie sanders was booed when he was supportive of that was kind of the first time you saw him a little bit rattled. Like the base is supposed to love me, why am i being booed. Joe biden didnt do enough to get back on track. He might do well in South Carolina but that appears to be his only firewall. You need more than one in order to do well. Stuart wait a minute. 150 Million People killed by guns, shot, killed, since the bar is extremely low for joe biden. Hes had such terrible performances that this one was a little bit better even though he messed up the facts across the board and bloomberg didnt rebound. For a guy who was supposed to resurrect his candidacy onstage last night, nothing he said was impressive or memorable. They will spin it into ads the way they have in the past but he didnt put himself back on track. I think you saw a lot of then watch elizabeth warren, tiptoe attacks against Bernie Sanders, is recognition hes the frontrunner and she doesnt want to attack him so much she cant be part of whatever cascades next, whether thats this year or 2024. So nothing reshuffled last night big time and Bernie Sanders continues to be on top. Stuart theres an expression in latin, status quo ante. In other words, the status quo now is the same as it was before the event. Unlike last debate where bloomberg singlehandedly in one debate brought down effectively his president ial prospects. Stuart well put, young man. Do we have bret baier available . Yes, we do. I can hear him saying sure, hes there. Good morning to you. Thanks for being with us. Your takeaway from the debate . I think pete is right on. Bloomberg is not good at this. Hes not good at the debate thing. The best moments for bloomberg were in the commercials that had his commercials running during the debate. I think that Bernie Sanders was in a different position, under the spotlight, under the target, and the interaction with the crowd and the booing had him a little flustered but to petes point, he is in a position now that all he really has to do is have a few big wins and then proportionally take his way all the way to milwaukee. So without finding that one Silver Bullet on the other side, the moderate lane, hes in a really good position heading into the convention. Stuart hold on for a second, bret. Im going to show the audience these moments of chaos last night. I know you have seen it because you had to sit through it all and comment on it. Some of our viewers may not have stayed up late to watch. Here is the montage of chaos. Roll tape. Vladimir putin thinks that donald trump should be president of the United States and thats why russia is helping you get elected so you lose. He didnt write that bill. I wrote that bill. I wrote the bill. Medicare for all will cost 30 trillion. Can you do the math for the rest of us . How many hours do you have . I will tell you exactly what it adds up to. It adds up to four more years of donald trump, Kevin Mccarthy as speaker of the house. Do something for the people of america instead of a bunch of broken promises that sound good on bumper stickers. Stuart come back in again, bret. I think the loser here, if you can put it that way, would be the viewer or maybe democrats who wanted to find out a bit more about their candidates and their policies. I think they lost. What do you say . It was really messy and chaotic and kind of a food fight. First, we are a little bit down the road to have seven candidates onstage at this point. It really affects the ability to move around and get to the issue. I do think that had we been doing the debate we would have had, you know, strict guardrails and maybe a bell or something to make sure that the candidates know their time has expired and to keep it, you know, in golf terms, in the fairway. That was all over the place. That was in the water hazard, it was everywhere. Stuart the democrats have made a real mistake in not holding some of these debates on fox where you and martha could have asked real poignant questions about how do you pay for all these programs. That really didnt come up that much last night. No. And so thats the key, i think, for debates, to not only have viral moments but to get to beyond the talking points, to get them from getting off the ramp from their stump speech and Bernie Sanders is very effective at getting back to his points hes been talking about for 40 years, which is why he comes off as authentic. The question is, can anybody take him down. Super tuesday or beyond. Its beginning to look like not. Stuart actually, i do agree with you. I of course will be watching you tonight. You are going to be on all night long like you usually are. Im jealous of your air time, actually, even though i have three hours. I want to mention one thing. We have this fox nation series, the unauthorized history of socialism. Its a sixpart half hour episodes of just straight, the history of socialism. And democratic socialism, everything. It is worth checking out. The First Episode is free. Check out fox nation. Stuart im really disappointed because i am a refugee from socialism and im not in the unauthorized history of socialism. Thank you very much. We will watch tonight. Thank you, sir. Appreciate it. Okay. I have john and pete with me now. First to you, pete. I dont think theres anything stopping Bernie Sanders from acquiring the most delegates and the most votes and the nomination. No. Bret is exactly right. At some point it becomes about math and money. It becomes about do you have the delegates and how do you accumulate them. Because the Democrat Party does it proportionally, if he has more of the vote and garners more of the percentage and continues to do so, theres no way to stop him unless theres an immediate consolidation of an opponent. Then theres money. Then theres the ability to raise resources. Donors end up turning off the spigot when your candidacy is no longer viable. Everyone on that stage except for bernie right now and michael bloomberg, who can write hoins che his own check. Stuart no sign of the rest of them consolidating behind a unifying candidate. Too many egos. You get in a room and say its going to be you that takes over the moderate lane, they all think they could win. They have paths where it could conceivably happen. They all have paths do i have a Vice President ial bid in the wings. Too many dynamics to sort out in a concerted way. Stuart john lonski, political question. Forgive me. Do you think Bernie Sanders, if hes the nominee, can beat donald trump . I think he has a better chance than George Mcgovern did back in 1972. He has a more compelling personality. But i dont know if thats saying much. I think nixon won Something Like 49 of the 50 states in the Electoral College in 1972. Stuart you think he might do better than well, lets just put it it will be an uphill battle, no question about that. If the economy is still growing and the markets not in a tank, it will be very difficult for any democrat to beat donald trump. Stuart im breaking in because i think we have news from brazil. The first confirmed virus case in latin america . Ashley they are actually tracking 20 people in brazil but often people dont exhibit the symptoms of the coronavirus until they have already been out and about and possibly infected others. They are also very worried in brazil because a lot of their medical supplies comes from, including those face masks, out of china. We know whats going on in mainland china. They are very concerned they wont be able to get the supplies they need to deal with this. On top of this, its the festival season, carnivale, where millions of people come to enjoy themselves. Thats what you dont want when Something Like a coronavirus is out there, that persontoperson transmission. Stuart quick question around the table here. Im interested in americas response to this. Pete, on your way in today, Walking Around new york, have you seen anybody in a face mask . I have not. But i do think psychologically, you can reach a point just observing where people start to get concerned, start to think through their own scenarios in their own lives of how it could happen and thats why you cant let the hysteria get in front of the reality. Thats why this is an extremely important thing for this administration to focus on, first in the policy but second on the politics. The left is going to try to use coronavirus against him any way they can. Stuart any face masks . No face masks but my wife is a democrat, she told me she doesnt understand why trump doesnt stop all international travel, nobody can come into the United States. Thats kind of interesting. Thats extreme. Stuart does she approve of you being on this program frequently . She likes you. Stuart game, set and match. Hold on a second. Kristina partsinevelos at the exchange, you say this hour is a big indicator for the day. Tell me more. Kristina this is according to some traders, thats because of 11 00 a. M. Which already passed, we had european markets close. What we are seeing is a mixed reaction with the uk higher but in germany and france, lower. Lets take a look at some of the big Luxury Brands like lvmh and burberry, trending a little higher which is positive because usually when times are rough or people get worried, tourists dont go out and shop. You guys just brought up masks again and the coronavirus and i was just chatting with the traders before going live and they are saying the tone right now and the word is jittery. If theres any key cases that come out throughout the rest of the day, you could see the algorithms react very drastically so there is still a lot of cautious Movement Across the board. And i want to point out, too, theres no playbook right now. The reason for that is that one, its not contained, two, you have supply chains this time around that are very very interconnected. A lot of traders, too, are referencing 2003 when we had the last previous virus and that was a long time ago. A lot of guys in this market are newer, have not experienced this kind of thing so thats why you are having this lack of playbook and confusion amongst a lot of investors. Look, theres the luxury. Stuart they actually traded higher in europe. Thanks. Just a quick word on the market. Now we are up 409 points. I think theres something going on here. I think individual investors may be actually trading this market on a momenttomoment basis. I will repeat what i said an hour ago. If youve got a pension plan, 401 k , i. R. A. , you can actually buy a stock, you can sell a stock, take the money off the table, put it back into a stock, and three minutes later, sell it again at no cost and take your profit. You can trade moment to moment, the little guy can do that. I think a lot of that is happening now. 420 points up, you are back to 27,500. Quick question to pete hegseth. Formerly the 101st airborne. You did see, i take it, the First Military person has been infected, is in south korea, hes offbase in his own residence in quarantine. What do you make of that . Any military Forward Deployed is going to be susceptible to whats going on in that region. We had to take similar precautions in iraq, afghanistan or elsewhere. Not coronavirus level things but you interact with things you wouldnt otherwise. If theres one institution that should be able to handle a quarantine, its the United States military. But again, because this is asymptomatic, oftentimes, you dont know whos carrying it and who they interacted with, there is a point at which it could be more problematic. Im confident that our military will, listen, they can restrict you to your barracks for no reason in the military. In this case, they would be restricting him for quite some reason. If theres one place im not concerned, its there. Stuart you were never restricted to your barracks. I may have restricted some people to their barracks in my day. Stuart lets not get into it now. Check that market. We are up 421 points. Got to tell you, the markets been open for nearly two hours. I have not seen a red arrow for any of the major indicators yet. In other words, we have had a straight up modest rebound from the near 2,000 point loss on the dow monday and tuesday. Its a modest rebound but it has been consistent. We have gone up since the opening bell. Weve got three dow stocks lower, exxon, chevron and disney. Exxon and chevron reacting to the much lower oil price, of course. It actually dropped to 49 a barrel. Not good for the oil majors and definitely not good for drillers, either. And disney down, bob iger is leaving the ceo position. Hes becoming the executive chair. Of course, disney does have china exposure. Their parks, shanghai, hong kong, et cetera, et cetera, they have exposure there. But they are the only three dow losers in a market that at this moment is rebounding very nicely. Last word to lonski, with a wife who does not like the program. What have you got . She likes you. Look at it this way. I like the fact that whats of critical importance is that stuart hegseth likes me. My wife does, too. The market really doesnt care about the rate of corporate earnings growth. 1. 35 , tenyear treasury yield, that isnt much competition for equities. May i add very low tenyear treasury yield translates into a mortgage yield of 3. 25 , 3. 5 . Thats good news for a lot of prospective home buyers. Stuart i really wanted to pick up on that because there is one bright spot, completely outside the virus, completely outside china and europe. That is the Housing Market. I think Mortgage Rates are coming straight down. Ashley refinancing surging. Stuart did you see that this morning, we are selling new homes, new homes, at a rate of 764,000 per year. That is huge. Ashley fastest pace in 12 years. Stuart exactly. Yeah. We have the lowest longterm Investment Grade bond yields since 1953, 1956. Stuart i remember that. Yeah. You were there. You were a young man. Ashley cub reporter. They are refinancing, and when companies refinance a lot of debt, that lessens leverage. Stuart do you know what the major indicator was in the 1950s . I do actually remember this. Know what it was . Ashley tell us. Stuart boxcarloadings. They used to measure how many boxcars on the railroads were full. That was the shipping indicator. That was an economic indicator. We dont use that these days, do we . Ashley thank goodness. Stuart are we done . I was in elementary school. You werent in college yet. Stuart i was just a young lad on my way. Whatever. What have you got . Lauren home depot upgraded today. Lowes finance chief says this, strong consumer, low rates, healthy housing sector and aging Housing Stock provide support for continued growth. Stuart okay. We will take it. Hold on a second. Hegseth remains seated. I want to ask, how about bitcoin . Its not a flight to safety. I was actually checking that recently. You thought the last couple days would have been a moment where you thought it would have seen some increases. Stuart get your money out. Put it into microsoft, lad. You can make a fortune. Much longer play. Stuart a young man of your age can certainly thats right. Stuart people like me no boxcars here. Stuart you have a show to do. It was a great pleasure. Thank you for being with us. Lonski, you have to stay for a bit. Okay. Stuart i need an economist as opposed to soldier. Got it. Jonathan hoenig is on the phone. Are you still playing gold, jonathan . Great to be with you, stuart. Good morning. Gold is actually getting a bit of a selloff today. The last two or three days, we had talked about gold as being the goto safe haven asset, especially when the dow is falling 2,000 points over the better part of a couple of days. Gold has fallen off as the markets have rebounded here but look, i think you need to think in terms of gold, in terms of a longterm trend. The last big bull market in gold unfolded from 2001 through 2012. My prediction is we will see the same sort of similar longterm move higher. So you so gold fall off but i wouldnt count it out just yet. Stuart i just dont see any sign of inflation and thats usually something that propels gold to higher ground. I dont see any sign of inflation, jonathan. Do you . Thats a good point but again, think about it. Last time gold went for basically 400 an ounce in the early 2,000s up to 1800 an ounce by 2013. There was really no visible sign of inflation or even really legitimate reasons to invest in that gold, up until about 2008 or 2009 when the Global Financial crisis hit. In my opinion, what you need to do is keep an eye on longterm trends in price. They oftentimes predict the news long before the news actually hits. So especially now, given the weakness. Looking at todays bounceback, im happy to see it but only 27 of stocks are now above their 50Day Moving Average and less than half of stocks are above their 200 Day Moving Average. What does that mean . Its a long way of saying the trend at least for now is down in the stocks, makes Something Like gold a good idea. Stuart okay. You dont think we have hit a bottom yet for the stock market. What i see is still a falling knife, stuart. As they say, you never want to catch a falling knife. I hope im wrong but the trend has really shifted in stocks so i think at this point you got to be playing defense given the weakness we have seen. Stuart we hear you. Thank you very much for jumping on the phone with us on very short notice. Im just going to recap the markets here because markets are looking pretty good. Please remember we are at the bottom of the hour, almost exactly. Please remember we were down very close to 2,000 points on the dow monday and tuesday combined. So this is a nice bounce but its a modest bounce. You are up 400 on the dow. Look at that nasdaq. The nasdaq composite is up 170 points. Major move there. Thats nearly 2 . Doesnt wipe out the losses of monday and tuesday, but its a very nice bounce. I want to get back to what we are calling a bright spot for the economy. Exclusive of the virus and exclusive of anything thats going on in china and europe, the bright spot we see is the Housing Market. Good idea to bring in jill mcdowell, our housing expert of the day. Good morning. Good morning. Stuart good to see you back again. Thank you so much. Stuart i saw this number this morning. We are selling new homes at the rate of 764,000 a year. Very very strong. Thats a pointer toward a strong Real Estate Market . I think the Housing Market will weather the storm of the coronavirus because it seems to be a safe investment and continues to be a good investment for people. You know stuart hold on a second. When i say its a strong market, i mean, prices are rising, the median for new homes now is 348,000, high level, so thats good for sellers. Right. Stuart what about for buyers . Theres a shortage of supply even though Interest Rates are way down. I think the sellers have a problem the buyers have a problem here. They do. They are in bidding wars. I know with my clients, they are in bidding wars and oftentimes losing because they arent going as high as you need to go, its fwo going so much over listing. Mortgage rates are down which means more bang for the buck but they cant seem to find a home. Stuart you said bidding wars. I actually saw a bidding war or two in florida, gulf coast florida recently. Where are you seeing them . Im out in long island. So we are seeing bidding wars in all markets. Heres the thing, a report was just released, especially with this coronavirus, the largest segment of International Buyers of u. S. Homes is the chinese buyers. So from 2018, april 2018 to may 2019, chinese buyers according to National Association of realtors bought 13. 4 billion in luxury real estate. So we may see because of this a little blip in the radar with the luxury market because they are not even getting back here to buy or they are kind of, i mean, the luxury market was slow in itself already. We saw a little pickup but this could be, you know, little bit. Stuart i would imagine the tax problem that people have, if you live in a high tax state, new york, connecticut, new jersey, illinois, california, i would imagine that makes the high end Real Estate Market very very soft. But the high end Real Estate Market in the floridas and texases and nevadas and maybe tennessees of this world, thats where its strong. Is that right . They are going down to the space whe states where income tax is low. They are saving a lot more money if they are moving from a state like say new york and moving to florida, they can save quite a bit of money every year. Stuart funny you should say that. Yeah. Stuart i cannot move to florida but if i could, i most certainly would. Naples, right . Stuart yes, i would. Ive got to be here five days a week so i cant really do it. But if i build a studio in my house in naples, maybe i can move. You never know. Are you guys seeing nasty competition coming from online real estate people . You know, they say we have seen, right, of course buying up homes, Different Companies are buying up homes but i dont think its long term, i dont think theres sustainability there. People, what im seeing, especially with millenials, they want the service, they want people to take them out, they want people to say that house, thats not a Great Condition or your money is better served in other areas. I think you know, those companies can say all they want that they can get a certain amount of money and they buy the house and its resale and i dont think they are making back the money they thought they would make. Stuart nice to see you facetoface here in the studio. Help me through this market. Thank you very much. Jill macdowel, appreciate it. Thanks very much indeed. Lets change tack and go to the great corporate story of the day which, in my opinion, is ceo bob iger at disney stepping down as ceo. Bob chapek will replace him. What does that mean for disney . Deirdre it means bob chapek has a very big job of handing over the legacy business to the streaming business. I want to underline this point for bob iger. He said hes done 81 earnings calls in his tenure as ceo. He really said i dont need to be involved in the daytoday making the machine run anymore. I just want to highlight he is going to remain executive chairman until 2021. He is going to be running the creative pipeline of the company. This is the future of disney, on every single call that i have been on he basically says streaming is disneys number one priority. Hes said it extremely clearly for the past few quarters, past few years. They need to be prepared to go against netflix, amazon prime, all the legacy media services. Chapek will have to operate on that. Stuart i would say disney is down, and it is down today not because iger is moving to the executive chair position but because they have got china exposure. Deirdre they certainly do. The theme parks business, that is the number two revenue driver for that entire company and as we know, marvel characters are particularly popular there. They are going to be hit by that indeed. I want to mention, though, just for all the investors,bob iger took criticism for his pay. If you bought, when he became ceo in 2005, you would have more than 400 on your money. Stuart i didnt buy. Deirdre neither did i. We are all sitting here not on a yacht somewhere. He did a very good job and even among his peers is recognized as one of corporate americas, this generations, one of the best ceos bar none. Stuart i would emphatically agree with that. Hes one of the best ceos of his generation. Thats saying something in america. Got it. John lonski with me. Heres something i dont understand. Im told demand to get into these parks, just to visit these parks, anywhere in the world, is astronomical, very very strong. But they are very expensive. Doesnt that suggest that people have got a lot more money than we think . I think that very well may be the case. You are exactly right. The admission fee to these parks is well over 100. It is Something Like for a family of four, that comes to quite a bill. That tells us that u. S. Consumer is in very good shape financially, the best its been in years. Stuart okay. John scott martin is on the phone. Thanks for jumping into the show. We appreciate it. Obvious question, scott. Do you think we have hit a bottom for the stock market . I think we have hit a temporary bottom. Now, that means we are probably good for a few days here as theres going to be buyers that will come in and chase these stocks because frankly, stocks we have talked about over and over again are in this bottoming process, if you just look on the charts. Im talking about some of our favorites, amazon, apple, microsoft, google, netflix and the like. The reality, though, is the following. You have been talking about with your guests today, there is still more cards to come out of the deck with respect to the coronavirus. But i will tell you that Going Forward, the market is going to be more prepared for bad coronavirus news. So its a good chance that while the data will get worse, the numbers will probably get worse on coronavirus, the Market Reaction will probably not be as extreme as it was say yesterday and on monday. Stuart we should watch out for a headline driven market because a new headline could mean a new selloff, am i right . Very much so. I will tell you, Going Forward, we talked about this last week, there are still things in your portfolio that can be your friend in times like these. I think that happens to be bonds, both on the high yield side which have not been blown out as you and john talked about today, as they typically have been in selloffs. There is still some safety in high yield bonds. And there still is safety as you talked about with Jonathan Hoenig in gold. Not because we dont have any inflation. Imagine if we get any inflation what thats going to do with gold. My take is there will be massive liquidity intervention from the Central Banks around the world including our Federal Reserve, lower Interest Rates, thats why i like gold as a portfolio protector. Stuart that intrigues me. When you say Central Banks are just going to jack in the money all way around the world, i know that means lower Interest Rates, but does it mean that some of that money finds its way into the stock market . It probably does. Because it has to go somewhere. Its not just going to go to one place. Thats another reason that theres probably a bottom here or a floor in here for stocks somewhere nearby. It just depends how big that liquidity is, when the fed comes the their senses and gets on board. If you look at futures markets on the fed funds futures which predict future Interest Rate moves, those are up markedly over the last couple days because of this concern over the economic impact. Yes, i agree with you, that market does or that liquidity does find its way into the market but i do believe that liquidity certainly finds its way into gold because gold is benefiting so far from liquidity we have seen year to date and last year. Stuart john lonski, resident economist of the hour, you think some of this money which the Central Banks are expected to flood into economies around the world, does some of it find its way into the stock market here . Yes, and i say that largely because we have an unprecedented aging of the u. S. Economy taking place. You will have a lot of these boomers retiring. They are not going to be spending this increase in the money supply. They are going to be saving it. Who knows, they may escape the coronavirus, live to be 90 or 100 years old, thats many years from now. So i dont think an increase in the money supply will prove to be as inflationary as it was back in the 1970s. Stuart fascinating. Dow is up nearly 400 points. We are watching for headlines on how the administration handles the virus. Weve got a headline from ashley about a czar . Ashley yes, politico earlier said the white house was considering appointing a coronavirus czar. We hear from a spokesman at the white house says that is not true. We are not doing that. They say mr. Trump, the president , is pleased with the leadership of Health Secretary azar on the coronavirus. In fact, mr. Azar himself testifying this morning said that he doesnt anticipate a czar. He said of course its up to the president to decide but he says health and Human Services is the lead agency and it is working well. Stuart not hurting the market. Thats for sure. Come in, please, kayleigh mcenany, trump 2020 National Press secretary. Kayleigh, do you have any idea what the president will say at 6 00 tonight . I dont have any idea what the president will say. Well see, i will leave those words to him. But one thing is for certain. This is a hot economy, you are reporting on it on your show. The president is taking control making sure we are safe from the coronavirus and is doing everything right. Stuart it says in front of me here the dnc is expanding its battleground strategy by adding six states to their 2020 target list. I guess they are coming after you guys in those six states bigtime. You think that makes much of a difference . No, i would say best of luck because among those states is ohio which is firmly Trump Country in this day and age and texas and georgia, by the way, states that no democrat has won since 1976 and 1992 respectively. So if they think they are going to march into texas and georgia and ohio with a message of socialism and government takeover and they are going to win against the hottest economy in modern history under President Trump, best of luck. Because their wish list is nothing more than a pipe dream. Stuart i think you will agree, though, that tonights presentation by the president at 6 00 eastern time is going to be very important for the election, because the chief executive of a country or a state is often judged by their performance when a major event hits that nation or that state. It will be President Trumps job tonight to say look, we got a handle on this thing, dont panic. Thats what hes going to say, isnt it . Yeah, thats right. Look, this president , theres an evident juxtaposition when hes in india on the world stage, making huge deals, hes taking unprecedented action for the coronavirus with quarantines and travel restrictions and you juxtapose that with the chaos, train wreck of a democrat debate we saw last night, and america asks themselves who do we want in charge, the only answer is President Trump, not the lightweights who we saw going at it last night on that debate stage. Stuart the virus, no threat to the president s reelection . Hes going to say that . Not in the slightest. This president has this under control and america will see that just like with every Single International incident, he knows what hes doing. Hes a leader, hes a commander in chief. Im proud to have him as our president. I think america is too. Stuart kayleigh mcenany, thank you very much for being with us this morning. We appreciate that. Thank you. Fastmoving show. Fastmoving market. Kristina partsinevelos at the exchange. Wait a minute. You have news on peloton . Kristina yeah, which is why its perfect you heard fastmoving. You know the stationary bikes that cost less than 2,000 . Look at that, shares are climbing over 7 and it seems to have to do with the coronavirus. You have one analyst add needham who had a note out yesterday who said she thinks peloton athome bicycles which we know are not cheap, less than 2,000 plus the 40 a month subscription, she thinks more people will stay at home because they are scared of catching any type of virus or influenza and will work out at home because people say gyms are cesspools of germs. Not necessarily the case but she believes the price target for peloton will climb to 40 bucks a share which is why you are seeing it a lot higher today, even though we know, we talked about this quite a bit around december time, it was off dramatically with the holiday commercial where the man seemed to be, you know, telling his wife she needed to work out. A bullish analyst on this. People will stay fit at home. Stuart you are having trouble describing the ad. I know you are. Dont worry, we will come back to you shortly, promise. We have news today. All day long we are trying to update the status of the virus and its spread. We have got an update on its spread to germany. Ashley yeah, following it second by second. The German Health minister says that country is now at the beginning of a coronavirus epidemic. He says the infection chains in germany can no longer all be tracked. In other words stuart i dont know whether you can translate but did he use that word, epidemic . Ashley yes. Apparently so. Thats the translation. Cant track all the people involved in the chains that they believe exist. In other words, we cant get a handle on it right now. Stuart john, im convinced this virus will push europe, the whole of europe, into a recession. Its nearly there already. Im sure its going to get into recession now. When you are growing by roughly w1 , it doesnt take muh of a drop in Economic Activity to trigger an outright contraction. Very real possibility. As long as until this virus begins to recede, the markets are going to be facing this downside risk. Its not going away. Its much too early to say with confidence we are not going to see new lows. Stuart got it. Deirdre germany is saying this but we have yet to report of an infection in that country unless im wrong. Ashley what they are saying is its a matter of time and the ones they believe could be carriers or suspect it, they just cant keep track of. Macedonia just reported its first class. Its clearly moving out from northern italy in every direction. Stuart previously reported there is a confirmed case in brazil, first in latin america, from a traveler who had been in italy. So brazil, just at the time of the carnivale. Not good news. Big stories that we are covering today, obviously. The markets reaction after two sharp days of declines. The spread of the virus. Obviously that dominates our broadcast. But lets not forget there was a debate last night, a democrat debate and it was utterly chaotic. Ive got the media guy at the hill and before we get to the interview, bear with me, lad, just bear with me here, i want to play a clip of the medias coverage of the virus. Watch this. Its clear that everywhere this disease is, there are a bunch of medical question marks, we dont know the answer to. Why get up and say everythings fine, we are close to having a vaccine . No identifiable source of the infection but people have started to give it to each other. They are worried about how the Global Pandemic will help or hurt Donald Trumps reelection chances. The president seeking to calm economic fears as stock markets plunge, touted the strength of the market and downplayed the viruss impact on the u. S. Stuart seems to me they are politicizing in an antitrump fashion, the virus. The greatest motivator in life is fear, right . I believe Bill Parcells said that once, the giants great coach. Also, its a ratings driver as well, right . So but is the fear justified . Like we are talking about this is something im not a medical guy, but we are seeing it spread to different countries, different continents, so with the president s address tonight, when he speaks about this, hes a president that speaks in bold terms and absolutes usually. I think it would be wise for him to manage expectations, because i dont see how you keep this out of the country completely and spreading. This is the time where the president has to be a little humble for lack of a better term and manage expectations, saying you may hear about this but dont panic, we have this under control. Stuart when you were coming in today, did you see anybody in new york with a face mask . I did not. Thats kind of a rarity. Then again, i walked a block. I wasnt in new york for that long. Stuart i think that would be an indicator of the anxiety level. I have not seen face masks yet. I saw one on a flight a couple weeks ago but that was it. Just one person. At the moment, the anxiety level is rising, but its definitely not at the panic level. The stock market shows that. Stuart the stock market shows that. I think its the president s job to tamp down on this anxiety, not to feed it. But to tamp down on it and suggest we are doing okay. We are going to spend the money, we are going to contain this thing. The mere scheduling of an address, whatever you want to call it, today does say that it is on his radar, no question, and could play a role in the 2020 election and that goes back to our debate last night, by the way. Stuart exactly. It was mentioned in the debate last night. I think last night was the politics of fear, actually. The politics of panic, actually. Yeah. I would think, though, given that this has been at least on this show, i would imagine, many other shows, the number one news story because of what was happening in terms of the stock market from an economic perspective, from a Health Perspective i dont know during a 90minute debate that 83 minutes in, that was the first time we got a question on the coronavirus. Right . So overall, just as far as the debate was concerned, just the way it was handled was horrible. Stuart yeah. It was not under control, thats for sure. But at the end of the day, at the end of the debate, it seems to me the democrats are in the same mess that they were before the debate. They are still utterly divided. I dont see any of the socalled moderates consolidating so they can take on bernie alone. Exactly right. Look, things are still close from a delegate perspective so if you tell klobuchar or warren to get out they would be what are you talking about, we are within striking distance. Its not that Bernie Sanders is this dominant sort of candidate. Hes the one with the lowest percentage of anybody in iowa and New Hampshire and nevada. Its hes the tallest midget in the room right now because hes getting enough votes to win and everybody else is splintering the rest of the vote and there is no dominant candidate. But on that stage last night, i didnt see that one word that you need to be president , gravitas. The other word, likability. Donald trump beat hillary clinton. He was the bigger personality, the more likeable person. Obama beat mccain and romney, same deal. Bush beat kerry and gore, same deal. Clinton beat dole, same deal. He was the bigger personality, the more likeable guy and all these people will say its not a big deal. I think it is. Theyre humorless. Stuart totally so. Bloomberg tried a joke but his writer isnt very good, apparently. Stuart you watch the president , hes funny. You can laugh. You may dislike him, you may dislike his policies but if you watch one of those rallies, it is funny. Hes engaging. Right . And he has a definitive message. Make America Great again. Optimism. Democrats last night is boy, the country is horrible, lets make it a little less horrible. Stuart i agree entirely. As things stand, i dont see much in the way of bernie getting the nomination. Not the oval office but the nomination. I dont either. Because again, i dont see that great candidate thats going to take him down. Then it becomes a matter of capitalism versus socialism and a guy who promises to raise your taxes, and the last guy to do that, im old enough to remember walter mondale, he won one state out of 50, his own in 1984. Stuart wasnt Ronald Reagan who turned to him and said there he goes again . Or did he say that to jimmy carter . Im not going to allow my opponents youth and inexperience, right, to he said i dont want age to become a part of this. People will think hes talking about himself and he turned it on mondale. Thats the only thing you remember from that debate. Stuart that was humor. He won the debate and i think that won him a second term. Thats exactly right. You remember one thing from these things and its usually some sort of zinger that doesnt seem scripted. None of these candidates can handle that. Stuart i have never seen Bernie Sanders smile. Never seen him laugh in genuine fashion. He got a little rattled last night. He got booed in the audience and he said really, really. Stuart how dare you. Where are the comrades to support me. Thank you, jeff. Good to see you. Good stuff. Now lets change subject completely. Im seeing some news on Toll Brothers . Lauren coronavirus. The stock is down 13 . This is the worst drop since december of 2008. Stuart whats the virus got to do with this . Lauren they had 11 closings in california pushed out because they cant get everything that they need from china, the supply. Interruption of supply lighting and small appliances. Like when you close on a home. Stuart yeah, obviously. Lauren they cant fill the home with everything they need. [ speaking simultaneously ] stuart the homes werent ready . Oh, you fooled me with the closings bit. All you need is paperwork for that. Lauren thats how its stated here. Stuart mountainous task to get the paperwork for a closing, let me tell you. Okay. Thats Toll Brothers. The stock is down 13 . I wonder if that has something to do with the market which has come off a 400 point gain to a 250 point gain. Thats the direct impact of the virus on an american corporation. Maybe theres a connection. Im not sure. But you have ashley yes. Stuart update on the virus in america . Ashley from the cdc. 59 cases, 14 confirmed cases now here in the u. S. , 45 from those that were repatriated to the United States, those who were elsewhere and contracted the virus and came back to the u. S. So 59 total, 14 within the u. S. , 45 brought back from somewhere else. Stuart i have more news on the spread of the virus. We just got the first two confirmed cases in pakistan. The significance of that is that its probable, i do not know this, but im speculating that those people have something to do with iran, where the virus has broken out bigtime and where they have i think they have refused to quarantine the city . Ashley that was the latest news. They havent quarantined any city. You have religious sites where millions of pilgrims go in and out daily. With no checks and no quarantine, you can see how that would spread quickly. Stuart we have cases reported in kuwait, oman, iraq, bahrain, lots in bahrain, i think 23 cases in bahrain. That was last night. So its clearly spreading out from the epicenter in the middle east of iran, and its clearly spreading out across europe from the epicenter in northern italy. Its spread out from its epicenter in china, gone into south korea, which now has more cases than any other country in the world except for china. Ashley just to reemphasize what the germans have said, there have been some confirmed cases in germany and the Health Minister is now saying hospitals and employers should review their pandemic planning right now because they cannot track the chains as they said of people who may have been exposed. Stuart this reinforces, john, my suggestion that europe is headed for recession. Its a possibility. In europe, they are having a lot of problems in italy spreading to germany. That would not be a good thing. Europe just cant get its footing economically speaking. Its been growing at roughly 1 , longest period of time. Stuart they still have massively negative Interest Rates. Not helping them much. I guess its preventing things from getting worse. Stuart you pay the lender to borrow money. Isnt that incredible . We have corporations in the United States that are borrowing in euros out ten years, they are paying. 25 for interest. Stuart not bad at all. I think we should Pay Attention to the overall market. Throughout the day today, we have gone up. Its been green arrows right since 9 30, when the market opened. At one point today, we were up well over 300 points. We have come back a bit, just in the last few minutes, we have come back to a gain of 200 points. My theory is this. A lot of people will buy a stock because its cheap, then ten minutes later, when the price goes up, they will sell it. So you got a lot of up and down as the trading people move in and out. I think maybe we are in a down spell at this moment. Because we are off just 200 points, compared to a 300 point gain earlier. Nasdaq, though, still up 107. Thats come down a little bit. The s p up 27. Thats come down a bit. Ashley from 134 to 133. I think all of these headlines, you said it at the very beginning of the broadcast at 9 00 a. M. , this is a headline driven market and it certainly is. A lot of the recent headlines have not been that great. Stuart Kristina Partsinevelos at the new york stock were past the 11 00 hour where the european markets closed. We dont have much incoming liquidity in this market after they closed. What is going on . Markets in europe closed mixed. You ask about the what reason were seeing tiny selloff. It was originally 300 points higher and coming down . One trader told me doesnt believe the momentum will continue. What you have are bottomfeeders, people looking for companies with stronger earnings and stronger fundamentals, wrongfully in their opinion sold off because they had nothing to do with the coronavirus and what we talk about the United States, there is still a lot of strength when it comes to u. S. Companies here. Some of the traders taking that up. But many here do believe we may start to see a fade in the afternoon. Look around that 2 00 p. M. Mark, that is when we could start to see Snowball Effect and selling off. Seems like the dow is up about 233 points. Still in the positive, but the key word here is jittery. Anytime you see one more case hit the wires, you have those algorithms that react. You have traders react and start selling or covering their positions. So that could be, we cant guess it, but that could be one of the reasons why were starting to see the downward trend right at this moment, stu. Stuart kristina, one quick thing, if we were to see a new case revealed in the United States, and it was not the result of travel from some other country, im not suggesting this has happened or will happen but that will be the headline which would upset the market . 100 . That is an excellent point. That is talking about how it spread and were still so confused exactly how it spreads and what the contagion period is. So when you have a case like that where it is spread on the United States with an american who never even left u. S. Soil it becomes alarming. So you have many one headline like that, stu, would definitely cause a selloff because you have algorithms just picking up key words. Yes, good point. Stuart kristina, great job today. Thank you. Thank you very much indeed. Youre our eyes and ears on floor of New York Stock Exchange. Thank you. Thank you very much indeed. We ought to thank everybody on the show this morning. It has been kind of rock and roll as we call it because you never what will happen next. You have to concentrate on the market. You have to give the news about the virus and it is impact around the world. We had lots ever news this morning. John lonski, resident economist, even though your wife is a democrat im pleased to have you on the show, young man. Pretty good. Thank you very much. Im sure she appreciates it. Stuart lauren, ashley, thank you. Neil, its yours. Neil how did john slip through . It is a joke, a very bad joke. Thank you stuart, very, very much. Stocks tending to rebound after the biggest twoday point drop weve ever seen. The coronavirus fears have been flowing. We pared about half gains earlier on on some other developments including new cases in pakistan but there is a lot going on here. This is kind of following almost day by day, week by week, month by month, how markets responded to sars, how they responded to ebola. It is uncanny. Jackie deangelis is looking at that and some historical parallels. Reporter neil, thank you. The dow