> the markets are higher this afternoon, but well off the highs of the day when the dow was up"> > the markets are higher this afternoon, but well off the highs of the day when the dow was up" property="og:description"> > the markets are higher this afternoon, but well off the highs of the day when the dow was up">
the hit. why not. "power lunch" starts right now. >> the markets are higher this afternoon, but well off the highs of the day when the dow was up b about 40 pau points up about 150 as coronavirus fears continue to grip wall street oil briefly sinking below $50 a barrel now down whopping 17% just this year that move is taking down energy stocks well. the worst performing sector, energy is now down 12% for more on the rebound in the stock market and what's driving us high er after friday, het's g to bob at the new york stock exchange >> so good to see you back always a pleasure to see you so listen, we're up today holding on to modest gains here's the s&p 500 the coronavirus headlines are mixed. low mortality rate, but we don't know what the infection rate is. we're holding u. you notice this move up here very good manufacturing numbers for the united states and that was a pleasant surprise now in expansion mode sectors today, mostly cyclical names holding up here. materials. semiconductors, bank stock, industrials. the one exception, energy still sinking. oil cannot catch a bid exxon mobil god a bid at goldman sachs. what matters is earnings first quarter estimates. s&p 500, the estimates have come down in the last couple of weeks since january 17th, this is how much they're declining from the last two weeks, but material stocks estimates have been coming down. industrials, energy. this all makes sense same thing with hotels, restaurants and leisure. these have been coming down a analysts try to predict the outcome of the coronavirus this could get better or improve. >> thank you very much let's get you up to date with the latest on the coronavirus. the newest numbers now putting the total number of confirmed cases at more than 17,000. 362 deaths have been b linkeded to the disease in the u.s., there are 11 confirmed cases including a second case of person to person transmission meanwhile, china's stock markets reopening and the shanghai come president obama it sank 8%. let's go live to beijing with e eunice >> thanks so much, kelly well china is officially back at work but 24 provinces and cities have told businesses that they shouldn't restart operations until after february 9th that means that more than half of china is still shut and those places account for more than 80% of national gdp and 90% of exports. other localities impose new restrictions the city that's famous for its small and medium sized businesses has imposed a partial curfew on its residents until next weekend, each household has to designate only one person who could go outside of the house to run errands and buy daily necessities every other day. apple also closed all 42 stores on the mainland and 10,000 flights were canceled on sunday alone. part of that is because several countries have now imposed travel restrictions on chinese nationals and the chinese government called out the u.s., singleded it out, accused the u.s. of quote creating and spreading fear since washington was one of the first countries to impose a travel ban on chinese nationals and to evacuate u.s. citizens they want to show they have the situation under control. on state tv, they've been broadcasting the now completed prefabricated hospital which they say has already started taking patients, but programs as a sithat business is still far normal now if you order takeout here, that takeout comes with a list of temperatures of your chef, the person who prepares your food as well as the courier. >> as i understand, your receipt when you order food, shows the temperature levels of all those people >> that's right. it has hatheir name and temperature just so you feel safe receiving that food even though there's still as you guys were talking about earlier, a lot of quos about this virus and one of them is that you don't necessarily show that you have this virus and you can still be contagious even if you do have a temperature or you don't have a temperature >> so i can't help but notice that today, you're not wearing a surgical mask. i think friday, you were why? >> because friday and actually earlier today, when ever i go outside, i put on a mask, but here in the studio, it's almost as if you're in your home. also, this particular room, the studio, is completely sealed so i feel much more comfortable being here than not having to wear the mask. >> all right thank you. report iing from beijing stocks are bouncing from friday's big sell off. the coronavirus seeps to be opening the eyes of some wall street veterans, just two weeks ago, david teper told cnbc he was bullish on the market. today, not so much changing his tune saying coronavirus quote may be a game changer and -- saying this isn't the dip to buy so should you trust today's bounce or is this potentially more pain ahead? let's bring in jim mcdonald and mike ryan, ubs global wealth management america's chief investment officer let me begin with you, jim do you think this is a dip worth buying or should i hold off and be more cautious >> there hasn't really been a dip in the u.s only about 2.5% off the highs, but if you look at china with the stocks being down 8% overnight after having been closed for an extended period, i'd say it's too e early to buy that dip we want to see the cases piquing and being identified before you consider being the conditions for a bottoming in this. we're just starting to understand how broad the economic impact of this would be so i'd say it is too early to buy china on the dip that it's experienced. >> mike, you sort of have the same view. you say don't look to buy this correction if correction we can call it at this point. but over the next six months, you see stock prices moving higher so the question is why not buy now if they're going to be higher in sixth months from now? >> well, first of all, i think jim cappslated it pretty well. i think what you're going to see until we see a piquing of the infectious rate, until we get a sense of how deep the outbreak is, there are some things we don't know how this is playing out. for our viewers, we'll have more volatility ahead in term of rebound in global manufacturing, which is beginning now which we saw today in the u.s. ism data, we think those suggest that over the course of the next six month, they'll be especialwe don't sees presenting the environment where it's going to heed to a terrible global growth slowdown so short-term volatility buys economic dislocations it pays to remain invested but be careful not to get too excited. if the market gets these short-term periods of volatility, don't get caught trying to chase them down. >> are you overweight in emerging market equities and if so, why? >> so we have a balance in terms of our portfolio we have exposure in the u.s. and emerging markets. one of the reasons we have exposure in emerging markets is because we see this slowdown as running its course we expect it to relert in the second half of this year it could be stalled about a quarter especially in china because of the fallout from the coronavirus but our view here is that the conditions by the emerging markets with regard to likelihood of a softer dollar over the balance of the year that rebound in global manufacturie ining suggest to ut emerging markets will have a better opportunity for investors in the second half >> last hour, we heard from a guest who said he'd buy the stock of luck coffee you have to take long-term view. would you unibble or sip at anything here? >> when you say would i nibble here, we have to be really careful. we're still early days here. we just had the chinese market just open. so ipg what we have to focus on here is how is this infectious rate playing out and not just within china. as it begins outside of china. how prevalent is it. is it going to be well contained? i think what's happened so far is the chinese officials have done a very good job of trying to make sure they had quarantines. the reaction function is much different than it was in sars, but let's remember that the world is a different world than it was during sars when we're globally integrated, china plays a larger role in the economy. so we have to be careful not to just get caught into a very short-term dip and see it as a short-term opportunity >> jim, same question to you are there ways that you can you know, say hey, this storm, too, will pass. you know, take a bullish outlook for example on the chinese coupler or is there a reason why some suggested this could reveal deep deeper cracks within china challenges there >> i would take more of the latter case, kelly we are underweight in emerging market stocks. this is not what they needed to have happen now at a time when there is focus on deleverages in china. there's still a risk around the trade front. there are reports out that china's talking about asking for some advance and having to meet the commitments on the phase one deal, so we very much favor u.s. assets over emerging markets at this point like high yield bonds and like interest rate sensitive equities like global real estate and infrastructure >> jim, thanks so much mike ryan, thank you as well appreciate your time today shares of tesla going par bolick up as much 20% today yes, you heard me right. fi phil >> shares of tesla up more than $100 at one point, it was up 110, $111 this is a new, fresh all time high for shares of tesla a couple of things working here. the bounce from the article over the weekend. ar gus research increasing its price target to $808 arc invest raising its target from to $7,000. perfect timing for us to have ron baron on tomorrow. you don't want to miss what he has to say when you u look at tesla, the first quarterly profit for panasonic's u.s. battery operation was just posted. that's significant the gig factory in spark, mov nevada first time they have posted a profit >> phil, would you describe this as an auto industry event of stock market event or both >> both. i would call it both and look in terms of the auto industry and investors, the question is this. do you believe that we are in an inflection point where electric vehicles are going to take off u from from here maybe not huge numbers, but take off from here. if you do, then you say who's best positioned. tesla is best positioned among all automakers no question about that especially when you look at the growth expected in china, that's why so many people are pulling in or putting themselves into the stock right now. >> phil, is there a brand name, a company, that is the leader in charging stations? >> well, tesla obviously has its charging network that is out there. but then you've got charge point. charge america so you've got a number of other firms that are building out recharging stations not only here in the united states, but also in europe and in asia as well but you know, the super charger net work, tesla believes that's a key component to people sayinging look, i'm going to buy an electric vehicle. they've got the suhper charger network there. there are others >> thank you very much coming up, the huge run of shares in tesla propelled mets pitcher to first place in our cnbc stock draft he'll join us so take a victory lap as we crown him the champ before he heads off to florida for spring training and nike getting bullish comments today up next, we'll hear from one man who says just buy it at fidelity, online u.s. stocks and etfs are commission-free. and when you open invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk welcome back shares of the swoosh are soaring. ubs saying the best is yet to come jpmorgan saying the 5% pullback last month was a buying opportunity so should you just buy it joining us now is matthew boss and matt, this morning on the bell erased a lot of that opportunity or did it? >> look, i think there's a premium for compounding quality and that's what i think nike is. we upgrade d the stock to an overweight back in december of '18. you had had a 20% pullback at that time, but i think what's interesting here, you've had almost a 10% pullback in the stock. the stock's trading at a 1.5 peg, mid to high teens, but that's an ago rhythm the company is managing to the bottom line they're reinvesting the gross profit doll ars. they could be earning more on the bottom line. you're going to hear from the new ceo this week and we'll see some of the new product that's really the backdrop for the next two years so i think there's a lot of reasons to be optimistic about nike from here >> that said, b i believe your price target is $111 it's not nothing, but why not set your sights even higher? >> i want to see some of the new product this week. i thi what's interesting is that this is the first showcase of product in terms of doubling their innovation budget. so this is the first time we'll see it i think we'll also hear a lot about some of the launches around the tokyo olympics. that will be a nice catalyst towards the end of this year and early next year. we will also have the opportunity to first meet john donahue, the new ceo coming in i think the theme is going to be acceleration but i want to learn some of the things he's going to be focused on as he takes the helm. so 111 is step number one, but beyond there, apply a two peg, that will be a stock well over $130, which is another nice 30% return on nike >> so two questions, the first one is about coronavirus and whether you think nike's manufacturing operations are sufficiently diversified to blunt whatever impact there might be from the virus and number two does nike really have any competition? >> it's a fluid situation. the lateral companies we've spoken to so far on the sourcing front, things remain, things remain on track. so we've yet to hear a tremendous amount of disruption. i think you know for nike, they're presty diversified globally they have preferred vendor status, also globally. the ports are open so while from an air freight perspective, that would be an issue. so right now with the ports open, i think the sourcing side is in tact i think on the china consumer front, look, the middle class is rising sport is rising. nike's growing globally over 30% at an over 30% clip and digital in china actually outpaces the world having just launched their app in december so i think there's some micro dynamics that sets nike apart in china right now. >> quickly, matt, it's a delica delicadel delicate issue, but their kobe bryant got a lot of attention. what do you think the company should do about it >> obviously it's a terrible event for nike and the opportunity. there's obviously a franchise there. it's a franchise that could be larger i think it brings a lot of eyes to the world of basketball i think the nba all-star game now becomes even a bigger catalyst and it ties into some of the new product, some of the launches a lot of the innovation that nike has coming, so i think it could be a nice opportunity for nike to capitalize on very strong product franchise and an overall halo effect on the brand nig right now. >> thanks very much. the iowa caucuses are tonight and it could be a big win for bernie sanders, but is a win for sanders a loss for the stock market we'll tell you how a wall street firm is gamg out those scenarios, but up next, google, not gooble, reports after the bell our traders lleiwi wgh in on that stock before the results come out please stay with us. . with chantix you can keep smoking at first and ease into quitting. chantix reduces the urge so when the day arrives, you'll be more ready to kiss cigarettes goodbye. when you try to quit smoking, with or without chantix, you may have nicotine withdrawal symptoms. stop chantix and get help right away if you have changes in behavior or thinking, aggression, hostility, depressed mood, suicidal thoughts or actions, seizures, new or worse heart or blood vessel problems, sleepwalking, or life-threatening allergic and skin reactions. decrease alcohol use. use caution driving or operating machinery. tell your doctor if you've had mental health problems. the most common side effect is nausea. quit smoking slow turkey. talk to your doctor about chantix. it's got all my favorite shows turn oright there.boom, i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about. yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪ welcome back to "power lunch. investors counting down to alphabet earnings. the final fang stock to report it's trading just 2% from its record highs how are you recommending client to position themselves ahead of alphabet's report? >> we're not making any recommendations ahead of the report the stock does screen well for us longer term we think it continues to make higher low r rs followed by higher highs i think really the standout here is more so just the top down tail winds from what remains a relatively and broadly strong technology sector. these high growth companies just remain resilient to these oscillating interest rates and every time the growth scare hits, the premium gets placed on them speaking about the charts, stoc is moving higher versus the s&p 500 as well. really since the start of the year that was the tactical signal a little extended near term, but expect higher lows followed by higher highs >> quint from addressing regulatory risks to growing its cloud business, what's the number one thing you want to hear from the ceo tonight? >> well, i think that we want to see how the revenue is and the future forecast. i think what would hurt this is if they surprise us in any way i mean we've been net sellers here of big cap tech i know it's not a popular view, but i struggle paying 26, 27 times forward earnings something that's only growing 17%. i know they traditionally have been trading in that range, but i think they're priced near to perfection that if they hint at any sort of slowdown or any of these concerns impacting the top or bottom line, i think the stock's going to get whacked >> thank you for joining us. for more, head to our website or follow us on twitter back to you. >> thanks. ahead on "power lunch", burn, baby burn sanders is climbing in the polls. what would his victory mean for the markets? plus as the coronavirus continues to spread, governments and companies are battling another outbreak misinformation we'll explain. and the 2019 stock draft has its champion mets pitcher noah syndergaard joins us to claim his prize. all this when "power lunch" retur returns. - [spokesman] if you've tried college but never finished, (group cheering) snhu lets you transfer up to 90 credits toward you bachelor's degree. - [woman] it doesn't matter how old you are, you can do it, you can finish. - [spokesman] finish your degree at snhu.edu woi felt completely helpless.hed online. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. our retirement plan with voya gives us confidence. we can spend a bit now, knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. i'm good at my condo well planned, well invested, well protected. voya. be confident to and through retirement. welcome back, everybody. i'm sue herera here's your cnbc news upda