understand >> by the way that's volume one. >> it's a coloring book. >> yes anyway, thank you very much. but i've got my work cut out for me and boy, is it difficult. >> jim put it on twitter earlier this morning, our thoughts with jim today. futures are soft on this monday. >> i'm still here. don't say that >> worst day for stocks in several months china tries to get back to work, paul on the hill this week yields nearing a one-week low. the fight to contain the coronavirus, the death toll surpasses that of sars factories and businesses in china trying to resume operations >> plus we're on deal watch. we got a few this morning. simon properties buying taubman center and elle brands the sale of victoria's secret stocks are set to open lower because of the coronavirus the number of confirmed cases in china is well over 40,000 including 910 deaths, make the outbreak deadlier than the sars epidemic of '012 and '03 it shuts down businesses and manufacturing and a slew of headlines every morning, who is open, who is not, foxcon apparently opening in not in shenzhen but gahangzhou >> the thing i hear from retailers many of the companies we deal with have moved out, except for little pieces of the puzzle one person tells me well, it's buttons. another person tells me the top of a rod they may be selling, so that there's going to be real disruption not just in tech. say 85% of something you were making has left, that 15% is hostage. to people are very underconfident about whatever they ordered, they were allotting for the traditional vacation, they always get long but i think they're going to run out, not today but in a few weeks, they're going to run out of product >> yes supply chain it's also what fits in listen, granted during the last two years of the trade war, as you pointed out many times, people did shift but there's plenty there >> oh, my. >> plenty there still. >> we should never forget, is that a very small group has really switched because it's so advantageous doing business there, but i also, you know, i don't want to -- we got to stop scaring people i've been looking at this incredible johns hopkins map and the thing it has more than anything else, it has total recovery and as of today it updates constantly there's 3,563. i know that's small versus the number of people who have gotten sick but i find that hopeful, without being a polyanna it has the number of total recovery you tend to think they call it, that's it. this is the opposite i encourage people who are as depressed about this thing as i am, take a look at this site >> it's difficult. world health did talk about some cases regarding people who had no history of travel to china, which is, makes you think about how else is this undetected so far. >> it doesn't add up to wanting to buy a stock it's nothing that says this is my chance to make some money >> we all hope it won't and has not spread and will not widely around the world the impact in china is so dramatic and still in process. and now we know most of the openings anticipated are delayed. we watch eunice's reporting closely. she said having people on the ground is the most important thing. any number of investors are on constant calls trying to understand what's going on there. that's the key, what is this going to mean to the chinese economy and therefore to the world economy as a result of supply chains being disrupted. companies not being able to deliver on what they said and then once is it is thankfully over, hopefully over, how much of it will be recovered, so to speak, in a resumption of growth, but these are all questions. on friday, we saw a number of people substantially cut their growth forecast to zero practically for china. >> i know. >> but there's nothing going on in that country. >> no >> very little >> i also feel like this is when -- i always think i have a good line on something i'm not saying we're overmatched by this but i am saying from the business side of things, we don't really know enough, and i feel like we don't -- it's going to come out what people don't have, and what factories are really critical. that will be our job our job i don't think is to assess the speed with which this virus goes, but i don't like the fact that so many of the companies that i deal with don't have an answer >> it's true and look at the number of companies now who have pulled out of mobile world congress ericsson last week is now nvidia, it's amazon, sony, because wireless conferences toned bring a lot of travel in from asian countries >> yes and 5g is delayed because of this, companies that made really their next move based on 5g, numbers are going to have to get cut. there's something i know, and it's going to be brutal because that was the thing that you wanted to buy. a lot of things that you felt were going to happen in the next six months are not going to happen >> reminder, don't miss the special report tonight on the coronavirus outbreak 7:00 p.m. eastern time on cnbc >> there we've done amazing coverage and i think people, it's very middle of the road no one is ideological about it it's great to have that update it's good we're doing this >> a nice basket of information out-of-pocket during the day tesla is rebounding after that roller coaster week in which the stock went to record highs, fell into so-called bear territory, finished monday to friday gain of 15% for the week, almost 170 billion worth of stock transacted, up almost 90% for the year, moved by $100 in either direction for three out of five days >> it's a dream come true for option players eunice said something amazing at the 5:00, saying that that one, the workers got the masks, being bussed in and it makes me think, did he even think about how to handle that, too that is the model factory of how you beat it. there's teslas coming out. will they be able to go to a show room and buy, i don't know how it will work in terms of congregating anywhere but he's producing the car. a lot of others i think can't. >> "journal" takes a crack at the paying of its shorts for th year, one quote "i got my butt kicked." the "forbes" piece seems out there, throwing out ideas google could acquire them own make a run for $2 trillion market cap >> cast warter they talked so much time talking about weima. conspirators say the reason they didn't talk about it is because of, this the absence of weima, it's far-fetched >> people always want to dream about the mega, mega, ghmega cap deal the likes of alphabet, facebook they don't do them facebook has an aversion to it >> every time you mentioned apple, what could be a good deal, rarely but almost every time they say no they don't say that's interesting. "no. we're not going to do that." >> he don't like the idea of it. the idea that musk would ever sell that company is absurd but it is interesting to talk to a certain extent about the hopes and dreams of investors that somehow alphabet or apple are going to get active in mega cap m&a, which they could do in a way that no one else, no other companies can. but they don't it's not their thing not how they operate >> like the old ibm, not the new. >> it's always something that changes the conversation >> you know what, david, i know and i don't mean to say, but if you had told me this morning that a large mall company would buy another mall company and double down, i would say that that could be fanciful, and yet i wake up to a deal that i didn't dream of. >> no, and i'm glad you brought it up. we did have, we mentioned the top of the program some m&a news and this is led by this simon property deal to acquire taubman and to your point, jim, the market agreed with you and everybody else agreed this is not going to happen. this is a 52% premium not on the unaffected stock price you see but on the affected stock price. taubman has up last week, reports of potential talks between the two and this is on top of that, and so simon obviously does see a significant entry point here that they were willing to pay in terms of consolidating. they are going to own 80%, the taubman family rolling n eventually simon has the right to buy their interest. it's going to be separately managed in the sense, controlled by simon, important to point out. the overall price is going to add a bid to the entire sector we would expect. >> absolutely. simon seems to be responding positively to the deal >> i pulled up with david simon. i hope i'm not voi lating anything off the record because i was at a deejay saul concert i don't know if you're familiar with his work. zblim auto, yes. >> talking about $33 billion in dividends that simon properties is historically undervalued. i see the stock goes up, there's a way to raise the stock, not the dividend >> yes >> when i went through the properties, the taubman owns, i realize i've been to a few of the malls and they are the highest, highest end. >> when was its lathe last time? >> actually recently, there's one a mile from my house, the small at short hills i went to return something >> that's all you need, you just need traffic >> it's funny, because when i heard this originally as a possibility, i did approach a couple of my key guys in real estate who i rely on for their insight. they're like no, doesn't make sense. >> doesn't make sense. anything that is like domestic operation, with no exposure to china, you wake up and you say you know what? i really gained this correctly and yet you knew you were wrong until today. >> the bond had a cap rate of 6.2% >> that's reasonable >> not bad >> simon had just bought forever 21 working in a way to buy a vulture and also today, siycamor buys victoria's secret so i came away saying i guess i'm just too negative on the thing i'm most negative about >> which is the future of the mall >> the future of the mall. >> do we have a little time to roll in to xerox and hp. 8:00 xerox came out. listen, we told you all along the process here they've been following it. they would get their financing lined up, then they would move to a higher bid, and to a tender offer. it happened today. they go to 24. 18.40 in cash, 0.149 xerox's spontresponse, hp share up overall this is not expected the question is will hp ever choose to engage what is it that they're hearing from their large shareholders that at least gives them the sense that they don't need to engage, and that they can continue to simply say no. that's the question. that is the riddle that xerox continues to try to solve here of course we have hp earnings coming out shortly one expect they need to be strong xerox did have good numbers. because it is the poll so to speak of the potential synergi s synergies, one would expect shareholders focused on, who delivers it, how it's delivered, would remain a key question. however, nobody seems to dispute the possibility that you could save a lot of money. >> yes >> but at this point, it doesn't appear that there's any movement we'll see whether this helps with that side, that being the hp side guys, and from what i'm hearing on the xerox side they want to enter discussions with no preconditions essentially saying we're not about social issues or board competition. we're about getting a deal done and they feel like they've answered the potential questions, first started with financing and started with industrial logic and then it came to price. they're saying hey, and by the way, they may have more to go, if you notice in, they gave more insight into their financing and they said in there that there are multiple different sources available to us for funding the incremental consideration in our increased offer. that means already the finance they've lined up but this got my attention. "we're currently in discussions with multiple institutional investors that expressed interest in infiltrating capital to facilitate a transaction. that to me they could find interest for their equity or preferred higher portion you'll get to a point soon 50% of the combined company would be owned by hp holders, if you weren't already there with the increased ratio. they don't seem to mind that either >> i wonder, there's not -- db when you speak to a lot of people in tech i feel there's a blip in pcs which plays to hp. people think they're going to be strong by the end of the year, so those who are banking on hp continuing strong numbers i think are beginning to waiver and thinking you know what wouldn't it be great to be diversify away from pcs? the other diversify away from xerox's business seems like dominos are occurring. i saw chip bury at the super bowl chairman these guys are every minute, this is the time >> yes, it is. >> every minute. >> hp doesn't have a poison pill see if they put one in mark tell is their counsel we'll get cramer's mad dash and count down to the opening bell we'll set up the earnings we have coming in the next few sessions powell on the hill tomorrow, the budget comes out today more "squawk on the street" from the nyse straight ahead. ♪ ♪ ♪ ♪ a new kind of investor with an app that's changing the way we do money. download robinhood now. she is on her way to our house. what? i got it. alexa, start roomba. the lexus es. eagerly prepared for the unexpected. lease the 2020 es 350 for $389 a month for 36 months. experience amazing at your lexus dealer. lease the 2020 es 350 for $389 a month for 36 months. when it comes to your business internet, which is more important? ♪ ♪ okay, i wish i didn't have to choose. like the more i think about it, the more i want to jump to each room. what if i said you can have it all? ♪ ♪ comcast business gives you connectivity that goes beyond. that's what we want! that's speed, reliability, and security, all from one provider. touchdown! get started with internet and voice for an amazing price. call today. comcast business. beyond fast. today is the birthday edition of "mad dash." i don't know how this happened i think i knew you when you were 40 >> you did, absolutely did you were the fabled 40 >> yes >> the one why karen cramer, thank you, i mistakenly let's say imbibed too much, and historically did throw up all over my shirt and walking around without a shirt, someone gave me a shirt. i slipped on the throw-up on the way downstairs slayer was playing across the street at gallagher's 33 it was suboptimal >> that's not going to happen this time. >> no, it's not. i learned. >> a quarter century >> you have too much and throw up and you think you can contain it by your hand, it doesn't work >> doesn't work that way >> you think no one's looking. no one's paying attention to me. the birthday boy anyway -- >> didn't expect we'd have that conversation >> well, you forgot, you were at the fabled 40. it was this big surprise and i, happened to be a down moment for me one of the analysts i don't talk about is a guy oliver chen, works hard, at cowan frankly, he is ones of most hard-working people i've ever met and he has a piece this morning really talking about how walmart could miss the number. now this is not what anyone is thinking he thinks there could be a shade down to walmart, he actually prefers target it's a well thought out piece and makes me feel like, wow, talk about something very few are talking about, given how walmart is, and beating numbers, and beating numbers and beating numbers. it would be a wake-up call that walmart's not invincible, so let's be conscious that this could be something that no one is looking for >> you can give us a quick sense as to why he thinks it's a -- >> it's kind of across the board but he talks about a lot of things calls out a lot of things that are good involving digital strategy very good, grocery very good it's kind of hey it's not blowouto blowout. in this market you have to blow it out i happen to think this is a great long-term hold and you don't have to do anything. i don't think oliver would disagree >> okay. we'll keep an eye on walmart >> don't show me the date. no one's looking. >> you don't do that when you're 65 wi >> will you stop i'm 5. it's the turn back time tour >> opening bell a few minutes from now at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. don't get mad get e*trade and start trading you leave it to me. i'll get your taxes in an ok place. what? just as soon as my audit is over, this gets my undivided attention. you take a lot of trips to the islands, phil? pretty great, right? oh phil's legally dead. fell off a boat. going by denis now. celery. long story. what do we got here. oh. not going to want to see this. i don't think this is going to work. at&t has america's best network, now with our best plans, at our best prices, starting at $35 a month per line for 4 lines. new from at&t. but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. when yowhat do you see?itical issues facing our world, we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. we'll pivot to january and move to more retail names and tech futures starting soft. opening bell in about six minutes. don't go away. watch us live on the go, on the cnbc app obama: he's been a leader throughout the country for the past twelve years, mr. michael bloomberg is here. vo: leadership in action. mayor bloomberg and president obama worked together in the fight for gun safety laws, to improve education, and to develop innovative ways to help teens gain the skills needed to find good jobs. obama: at a time when washington is divided in old ideological battles he shows us what can be achieved when we bring people together to seek pragmatic solutions. bloomberg: i'm mike bloomberg and i approve this message. there's room for more than just the business you came for. whether that's keeping up with what you always do... or training for something you've never done before. that's room for possibility. ♪ and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk ♪ its opening bethe opening b to you by nuveen, a leader of income, alternatives and responsible investing. you're watching cnbc's "squawk on the street," live from the financial capital of the world. the opening bell in just under three minutes on a busy monday morning. a lot is headed our way this week as powell heads to the hill tomorrow and wednesday earnings will heat up. we have new hampshire tomorrow and already, jim, little lilly mover at the open >> so many companies failed at alzheimer's. i know that people are making a great deal of it with the stock. but that was not accentuated at all when i met with mr. rick and i'm surprised it's done this much it wasn't like wait until you see what we've got it was the opposite. he didn't talk about it at all the idea that the company is being penalized this much after i don't think it was up in anticipation tells me that you might be getting an opportunity here mr. ricks is one of the best they had some fabulous numbers last time. please don't write them off. it's not like buy jiogen where y bet the house. just the opposite. >> biogen the lows in october and then reported that look again at the data where they did see some efficacy. >> yes >> for their alzheimer's therapy. and then they came back that stock rebounded dramatically >> yes, it has this should not be lilly being in the dog house because mr. ricks who say remarkable ceo has never given this lip service, said look out. j&j explained to me that this is really the most difficult one. >> alzheimer's you mean? >> yes alzheimer's. i know we're all kind of really perplexed and scared of corona alzheimer's affects a huge number >> the cost for the health care system are immense, and there's no cure. we are making real progress, we, the industry is making real progress on cancer we talk about that all the time. >> that's where the big spend is >> alzheimer's would be by far the largest drug in the world if somebody found something that not just stopped the progression but cured it >> moderna is a stock trades up constantly i spent a lot of time with moderna when i was at the jpmorgan conference. they are the ones. fauci is saying they could have something in a couple months and the reason is because all they do is this they personalize vaccines and they have hope in cancer they work with amazon web services to try to come up with a huge number of possibilities, so i understand that i look to that [ bell ringing ] >> there is the opening bell and the s&p 500 it's generac maker of generators for homes and businesses celebrating its tenth listing anniversary, at the nasdaq the bowery mission helping the homeless since the 1870s. morgan stanley downside should be limited to 3100, upside to 3500 as the liquidity driven bull market remains in charge. >> every time we see that downtick in interest rates, you keep coming back to okay, i want to be in i2.7% yield you start lowering what kind of yield you need and companies you didn't regard as being yield oriented suddenly become oriented which say lot of the s&p, because they've been serial increases, because ever since the great recession, companies have been reporting cash and when they get too much cash they dividend it back to shareholders even though they always say and if we saw growth, we'd give it to that. very few companies see growth. it is return and return and now their yields are kind of sweet a lot of them. you know, take one like here say good example broadcom, that's avgo. the company raised it and raised it it's a tech company. it yields 4% you have something impacted by china, maybe not, but protection, when something that you never thought, and not pearson, they own c.a. but texas instruments, 2.8 this is whey mean. texas instruments good balance sheet, 2.8 >> beats 1.56. >> it does not of course those people who feel that rates are never going to go up again it's rather incredible >> it's been a long time, hasn't it >> yes >> it's been a long time since rates moved up and every time they ever do, they just go back. >> contrast it with china's overnight, 5.4 is an eight-year high a lot of that is protein pork doubling in a year. >> right >> that limits to some degree what their bank can do >> they're short a lot of different food commodities but they have reluctant it seems to do anything our way. they cut the tariffs one thing that was discouraging, dealing with a major health company, i don't want to mention, it was offline that has said to beijing, whatever you need, we offer tremendous services, and beijing gave them the hand, said listen, we're really not interested in your help and then they come out and say we're not giving them any. they have the double-speak out of beijing it really extraordinary. >> fiery commentary on the sunday shows from the chinese ambassador, stog watcomething t. >> the company wants so much to help getting the max back up in the air and commentary out today it could happen before too long. story in "the times" got a test flight coming in the coming weeks and then the real mission begins and that's convincing the public that it's safe. >> i got the same, i'm close to this one, got the same call which is that it is eminent. as a matter of fact, everything, every hoop they've been asked to go through they've done. the twisty cable is something never an issue, millions of miles. i agree with you, what do you do go back and call it, the 737 you get rid of the max, because there's enough of the old plane that you don't really have to talk max now, that's branding, to some degree we know who is talking about branding is the president. i offered, here is one i offered to do my show on the inaugural flight on the plane. >> that's cool >> i offered to do it and i did it in front of my wife who did not fight me i don't know what that says about our relationship >> come on it's going to be fine. >> it will be fine >> i'd be happy to fly with you. >> it's going to be the safest plane ever and this was a promise i made thursday >> fun to watch. boeing is the top dow performer, apple is the worst as some, you call them analysts, jim, trying to model in what would happen if production fell 10% no chin chia >> let's take a longer, ten-year view i was 55 ten years ago the apple stock was at $27.87. you may want to trade apple. i would like over the last ten years to invest in apple and i'm going to make another ten-year bet. i think they're that good and i think they're going to weather this, and people who want to say it could trade, you trade down to 290 >> you think it's going to be a $13 trillion company >> i don't think we're going to look -- i remember when you had merck and coca-cola cross the $100 billion $50 billion, $10 billion barrier and everyone thought that was crazy, so idon't want to rule out something that seemed crazy ten years ago for certain. here it s i'm looking at 27, maybe it's done. maybe as towingy saganeggi would have said the best days are behind it. >> a ten-bagger. >> you were making, of course it was before this, this was this changed the world. >> talking about an iphone >> iphone and i think that's what did it. people say wait a second there's nothing new. and they tell me that how -- [ bell ringing ] [ applause ] >> are you hearing ringing in your ears? >> it's in high emy ear as i talk how many people do you see walking down the street talking to themselves, those guys are nuts they have the thing in their ear. >> tim cook made us look like we're nuts i'm paying for it. >> i've heard some things walking down the street. >> guy breaking up with girlfriend >> talking about intimate things >> i got a call from somebody important and didn't have my phone handy. say they were in the government. and i'm saying, giving top secret schedules and it's like people are looking at me oh my god, he's maxwell smart and i happened to be buying a jacket because it was cold. let me put this sleeve on. it was insane! >> it is amazing >> tim cook has a saying, many things to many people they have no right to know >> they need a cone of silence over their ears because they're screaming. >> yes the guy changed our lives and yet people don't give him any credit and it's insane that he doesn't get any credit i talk to my phone i have earpods wh what is he coming up with next how about ideas i could say are sweet? siri has been fresh of late. so what? my would i have is in poland, unfortunately handling a funeral that she actually directed and she did it with siri speaking polish how about that >> translation >> everything, everything was polish, thank you, tim cook. no, he does nothing. >> tim cook went eight at oscars last night but jeff bezos was in the cross-hairs of steve martin and chris rock's jokes take a quick listen. >> jeff bezos is here! >> wow, great actor. >> he's got cash, when he writes a check the bank bounce. like jeff bezos is so rich, he got "the boss" and still the richest man in the world he saw a marriage story and thought it was a comedy. steve, you have anything you want to add about mr. bezos? >> no, i like getting my packages on time >> funny netflix for all their efforts, laura dern and "marriage story" for supporting but "irishman" gets shut out again. i wonder if we'll have discussions about the feature film strategy. >> it's the first time, they send you emails and drop a lot of stuff over the weekend and i mentioned it, i was with a group of younger people, because it was parent's weekend in georgetown and these are all cord cutters, cord nevers frankly. they're very wired to it and there wasn't anything for them typically they're the peopletell me what to watch i don't have anything right now. it's a hiatus. hiatus netflix is putting out movie after movie. >> they are. i'm finding plenty >> you are >> sure. >> nothing to go back to you may have missed on any number of the other ones >> i said you don't do anything. >> that's true >> you don't even go to a taubman mall >> i went to nordstrom yesterday. >> i've gone there a bunch of times. >> my son returned and got something. >> you should go to kohl's to return something >> shaking everybody's hand, i'm like no, no shaking hands >> give me the purel >> no shaking hands. >> david, when you're with purel it's 20 seconds, less than 20 seconds, it doesn't work >> really? >> i got a mask that says i am a germaphobe makes it lighter when you put it on >> waiters at restaurants, no, stop >> i had so many fist bumps in washington my knuckles hurt. qsr comes out and uppopeye's comps up they're calling the chicken sandwich maybe the best fat food menu addition in years >> i'll top that by saying the new old bay franks sold out in 30 minutes and i'm going to offer my bottles for $50 on ebay, which is the only business ebay is doing apparently ba-dum-bum it was a joke. >> i got the joke, kind of >> geez, it's my birthday, you can laugh. [ laughter ] >> ed mcmahon. >> yes >> ha, ha! ho, ho >> you're good, very good. >> thank you, thank you. ebay is down, actually, guys but tesla is up 9% or 8.5% >> it's groundhog day when it comes to tesla >> look at this, dow is going green after futures indicated 100 point drop rbc up, nvidia thursday night. >> i have take 2 interactive tonight. last quarter was disappointing but the ray tracing, you can't tell the difference between the actual movie of let's say a space war storm trooper and a ray trace. it's perfect the next thing is he will make you look perfect in a video game, you. >> strauss doesn't need that, he isn't photo shopped. >> he's amazing. one of the things he does is ostrich meat, has no fat whatsoever >> ostrich meat? >> i think it's more doing 100 pull-ups >> the whole thing is revolting, isn't it >> he's like your age. >> shut up i asked him to take his shirt off last time. i said just do the thing with your shirt of course he said what am i going to do with the microphone? this i am i'll have him tape it. >> to his chest >> no hair either. the guy is so perfect. nothing he would rip off he's tiresome. >> yes, tiresome >> now he's going to cancel. i love the guy >> you give him a hard time. >> what, that he looks great >> yes, well not that. he's written a book about it >> wendy, his wife is sensational. he's sensational my wife loves him, my ex-wife loves him. thank you to my ex-wife for wishing me happy birthday. karen. >> you look good, too. you're hanging in there. >> man, i work at it >> you do, early >> when i was 55 i used to say i'm a young looking 65 i'm not bringing out the 75 card i'll tell you that >> no. >> will you look at him? >> yeah. >> that's not photo shopped that is the actual strauss zelnick. the numbers were photo shopped just kidding just kidding >> dow is green. amazon all-time high 2110. bob pisani on the floor. >> boeing up almost $40, major factor in the turnaround we open pretty weak, concerns over china banks yields down again, second day in a row is an issue energy no energy at all, we've seen that for a while. consumer staples, utilities, defenses leading early on. this flipped around. the big question of course is this divergence in stocks and bonds. i don't normally put up bond etfs but up the ten to 20-year up price is down. lqd is the large corporate dobod etf those are up the market is implying there are issues floating around with coronavirus. what we're watching, what the market, the equity market watches, is there any signs of reopenings in the factories? that's a good indicator here kia announced suspending production in south korea but tesla says they're resuming production samsung they're going to start tv production at the tianjin factory february 17th. this is mixed news here. we don't know. 'not quite clear right now and the market is reflecting, certainly the bond market reflecting some of that uncertainty. meantime we are about two-thirds of the way through earnings season let's call it good, not amazing numbers. the fourth quarter 2.3, this is going up, which is a good sign, and that often happens, but this is what we're watching here. this is not going in the right direction. this was 4.8%, these are estimates for the first quarter, 4.8% a week ago. today it's 4%. that's a much more aggressive reduction thanhappened under normal circumstances, reflecting the concerns about coronavirus out there. this is the problem here prices are going up. we had a great week last week despite friday so price it up, earnings estimates coming down, meaning the market is pricey 18.9 forward earnings and those are conservative numbers, when you start getting bigger concerns about coronavirus factor in this number goes over 19 quickly, depends whose numbers you're looking at. this is a big issue. the price something in the markets, got to resolve itself we need earnings to stabilize and better news on coronavirus, or people are going to start screaming immediately saying the market is too high priced and vulnerable for a sell-off. energy stocks still many sitting near 52-week lows a lot of them the small mid capped names so schlumberger, marathon, halliburton and conoco phillips weak get to the bond pits rick santelli at the cme in chicago >> good morning, carl. even though it's a cold winter in chicago we continue to see treasury yields melt like chocolate on a sunny day if you look at a two-year note yield we're down two basis points there if you look across the curve we're parallel shift down two basis points across all maturities year-to-date of ten-year is somewhat enlightening as you see we are very close to the low close of 2020 as you open the chart up, let's go all the way back to the way back machine of the stripring of 2012. the reason this area is making so many investors nervous is because we are sitting so close to all-time low yield closes in ten-year notes, 2012 and 2016 that level was 136, and of course as we move to 2019 and the fall, it was right around 146. but the point of the matter is, it's like a magnet, making many investors a bit nervous, especially if you are already long, looking for rates to continue whether it's because of central banks and balance sheets or whether it's because of the uncertainty of corona, or the counter intuitive nature of how all of that is pushing inflation up in china. will there be a channel for that inflation? remember, if you look at the '90s and '00s, they were exporting disinflationary pressures throughout its supply chain and markets in the u.s. and of course in europe. maybe the reverse of that for a while and finally, the dollar index. this chart starts on february 3rd which is every day of trading in february, and the dollar continues to march higher carl, david, jim, back to you. >> all right, rick santelli, thank you very mch when we come back, the dow is down 7. check out or podcast and listen to the opening bell hour of "squawk on the street" wherever you listen to podcasts s&p 3325 back in a minute we made usaa insurance for members like martin. an air force veteran made of doing what's right, not what's easy. so when a hailstorm hit, usaa reached out before he could even inspect the damage. that's how you do it right. usaa insurance is made just the way martin's family needs it - with hassle-free claims, he got paid before his neighbor even got started. because doing right by our members, that's what's right. usaa. what you're made of, we're made for. usaa take a loaning at faang today. amazon at an all-time high you got three out of the five in the green. dow is down 18 firm that has a truly long-term view? it begins by being privately owned. with more than 85 years of experience over multiple market cycles. with portfolio managers who are encouraged to do what's right over what's popular. focused on helping me achieve my investors' unique goals. can i find an investment firm that gets long term the way i do? with capital group, i can. talk to your advisor or consultant for investment risks and information. talk to your advisor or consultant when it comes to your business internet, which is more important? ♪ ♪ okay, i wish i didn't have to choose. like the more i think about it, the more i want to jump to each room. what if i said you can have it all? ♪ ♪ comcast business gives you connectivity that goes beyond. that's what we want! that's speed, reliability, and security, all from one provider. touchdown! get started with internet and voice for an amazing price. call today. comcast business. beyond fast. tlae time for jim and stock trading. >> if you do want it other than the incredible thing dimon has done, 33 billion in dividends, take a look at federal realty run by don wood. their dividend now is at $4.11 they are a shopping mall company that has done tremendous things ajaysent to their malls including build a lot of apartments and offices if you are inclined to say the group is under valued take a look at federal realty don wood is rather amazing terrific >> all right, jim. what's on "mad" tonight? >> my birthday kind of a comparison but okay i can handle it. i'm a grownup. i'm not worried. >> we have a treat for you right here >> oh, my. [ applause ] >> from nyse >> no age! thank you. you are beyond wonderful by leaving off my age >> a special day, jim. >> you guys are great. i love the exchange. thank you so much. great to be down here with my partners and all the people who work with me you all make me feel very young. how is that? >> we're the lucky ones, jim people always ask, what's it like i just say it is an education every day. >> thank you i wish my mom and dad were here because they would love to hear that pop loves you guys well, no i think pop always says he didn't turn your way i think he's mad at you. carl, he never said that about you. you i always had to assure him you were lukewarm on me not angry. come on. he loves you so much hey, you know, david was a little better than you today i watched david. he's better. that was another thing i'd hear all my life. >> happy birthday. >> thank you very much >> everybody, everybody. we should start doing what they do in japan. >> all right thank you, guys. you know what? there is another show. and then tomorrow another show >> after that. >> i'm thrilled. i'm thrilled to be here. >> highlight of the week cisco, something else? >> pepsi is a very important tell because that's been the fastest growing and if you really think there is going to be a recession and they deliver the number that stock will shoot right up it'll be a great tell of what's going on >> we have a lot headed our way, the next five sessions at least. jim, we'll see you tonight on "mad money" 6:00 p.m. eastern time of course when we come back we'll continue to keep an eye on tesla's wild ride good monday morning. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen and david faber at post 9 of the new york stock exchange let's look at the markets here nice bounce off the open futures indicated a drop of a hundred but dow is positive by about 28 points and s&p by 4 >> our road map for the hour begins with combatting the coronavirus. the death toll now surpassing that of the sars outbreak with factories and businesses in china resuming operations. >> it is one of the companies getting back to business in china, tesla shares spiking as the stock's volatility continues. >> we got a lot of m & a news, including xerox, which upped its bid to acquire hp and we have the big deal in the mall sector. >> we'll begin the morning with the latest on the coronavirus with the number of confirmed cases in china now well over 40,000 including 910 deaths. that makes this outbreak deadlier than the sars epidemic back in 2002 and 2003. eunice yoon has the latest for us out in beijing. >> reporter: thanks so much, sara it is deadlier and creating a lot of disruption in the global supply chain the manufacturers are now dealing with conflicting requirements that vary province to province and city to city factories are now being required to put in place several preventative measures. for example, to quarantine workers coming from other areas, also some localities are outright delaying their production dates to as late as march 1st. these requirements are creating a lot of confusion i was speaking to one factory owner who told me his industrial zone, for example, is not allowing him to bring in his own employees because they live in a town that is a couple hours away another factory boss i spoke to said that he has a shipment of masks sitting in hong kong because there have been so many reports that private shipments of masks are being redirected to wuhan. he is worried he won't be able to reopen because he won't be able to get the masks for his workers. there are some factories reopening. ford said that their plants have resumed operation though not at full capacity. tesla also has opened its shanghai plant, and local media said they had spotted staff entering the facilities in a bus wearing masks. now, the tech names, the big tech names out here are also being very cautious, telling their staffers that they should work from home for at least another week or two. and that gets to the date that a lot of chinese are looking at. that is february 20th. a lot of people are hoping that could be a turning point in the virus spread because it would mark the end of a 14-day incubation period from february 7th which is when most people started to leave their homes and travel across the country to return to work guys >> eunice, really quick, there's been what appears to be some disagreement on the level of u.s. help to the chinese the chinese saying maybe the u.s. should offer more the u.s. saying we actually have are there signs of american assistance at least in beijing >> reporter: there's definitely signs of american assistance in wuhan. a lot of medical supplies have gone there but you're right there has been a conflict about this there's been a lot of tension actually about that involving kyle bach for example and as well as the "global times" editor had been very critical of the u.s. saying they didn't get enough supplies in it was reacted to on social media and twitter, saying that he was an ingrate. i think his reaction to the propaganda machine in china not only through the government but also through the state media where they've been pushing a line that the u.s. is to blame for spreading fear unnecessaands been very upset about that and from the chinese perspective they didn't look kindly upon some of his comments when he said some things about the communist party and his hopes for them so it's been a very, very tense situation between the two countries in that respect. >> let's hope some of the modeling we're getting today that's encouraging actually does come to pass eunice yoon in beijing thanks joining us on the market impact today is bmo market investment strategist and morgan stanley's senior vp of investments. good to see you both and thanks for coming in. markets obviously looking through this and you are, too, given your year end target >> we are. i would say this i think we are embroiled again in another situation, carl, where we don't have all the information we desperately want. we are a society, an investment world that wants information immediately. why is the dow up 31 points? we need to know now, right >> why >> right and i think we have to kind of step back and give it some perspective. we're talking about a closed society, a communist country, a new situation where we don't know what is true or false and therefore what does it mean for markets and investing? quite frankly we're sticking with our case that dda, dollar denominated assets, i think that is why the u.s. market has held in, and bonds and the market we believe u.s. investing is the place for stability. earnings have become more stable bonds have become more stable. the currency impact. we think that's how we'll muddle through this and why, quite frankly, you've heard all these things about the market being resilient. we believe it is because most investors heading into 2020 have been massively underweight u.s. stocks and that's why you saw the january bounce and why stocks have held in there to date >> there is also the psyche out there that we'll see a recovery in china whenever they are able to contain this. then all of the lost activity will come back it was written over the weekend that may not be the case i mean, a goods recovery is different than say a financial crisis kind of recovery where you just come right back is the market getting too excited here or under stating the economic loss that we're looking at in china? >> i think that is an excellent point, sara. so many people have been waiting and praying for this recovery in emerging markets and really banking on that. we think it's just a little bit too soon especially given the fact we're not talking about how much supply chains have changed the last several months with the tariffs and things like that add all that up and i think there continues to be a lot of fundamental volatility in china that the proof is in the pudding. they need to put up numbers not only from a one or two quarter basis but several quarters before people actually start feeling like we're starting to see a bottom there >> so your view is not that we're going to see a recovery from all of this, your view is the u.s. is a global safe haven. >> we think the u.s. not only a global safe haven but from a fundamental perspective the strongest asset in the world period we do think especially given the fact many people got 2019 wrong and timed it wrong, saw the rush back into the u.s. in january, and still think we have the best companies in the world, period and we're heading back into that mid '90s type frame where large cap quality runs and it so happens to be many technology stocks, communications services stocks, clearly financials, are the place to be in terms of stability and using that large cap, stable type of frame work >> jim, when could we get to the part of the story where you start to bet on e.m. and heavy cyclicals? i mean, has that been pushed out? because it seems like we were starting to get there and then this virus came along. >> to your point, carl, what we saw in the fourth quarter of this year when we saw all these ism readings around the world not only in the u.s. start to show stablization if not growth. secondly, what we've seen is central bankers around the world still being very accommodative i think that is a very important thing to note. now, the u.s. market is responding pretty well here. you look at the news flow over the weekend, you start to think oh, my gosh we'll have a lower opening on monday. but the best way to ride a horse is to go the same direction that the horse is going the trends in the u.s. are still very positive. now, all of that being said, carl, i think we need to be a little cautious here and tap the brakes a little bit. if we look at the history of u.s. presidential election years that time frame between february and, say, late summer, is usually pretty volatile. i think investors need to be aware of that, that despite all the news we're getting about the coronavirus that we're still entering a time frame of the year seasonally when the stock market runs into more volatility we're just off all-time highs. i think we need to be very careful and patient here we didn't have much of a correction we had all this bad news we didn't even have a 10% correction 10% corrections are pretty normal that being said i think the backdrop is okay i just think we need to be a little bit careful about getting too excited right now. we still don't know what we don't know about the coronavirus. >> a good point, jim raises, brian. >> right >> implied volatility of u.s. equities exceeds that of european equities by the most since august >> you've seen the last two or three months these massive moves to the upside certainly but then when the market reacts to negative news it reacts very violently. i think that is why you're starting to see the volatility jim is exactly right with respect to historically in terms of the election side of things one thing to point out, a lot of the primaries have been moved up this year. i don't know if we'll head into that traditional season in the summer i think the near term, meaning march, april could be a lot more volatility, number one number two, with respect to what's happening with the election as well, i think many people are giving it way too much credit, you know, the economy is where it's at people vote their pocketbook in the united states. we saw in 2016, clearly, there was additional volatility in terms of brexit and things that people forget. so i think, too, especially given the fact that the s&p was up 31% last year, we'll have to slow down a little bit at some point but we still think we are in a 20-year bull market and investors should be fully invested with respect to equities we're ten years in so i think we have ten more. we're sticking with our call we think about a 20 to 25-year bull market. we made the call in 2010 we still think we're there >> finally, jim, to what degree are equities still potential victim to a spike in yield where do you see the ten year at the end of the year? >> the ten-year yield doesn't appear to be going anywhere north and the federal reserve board seems to be very intent on keeping rates where they are now, we did see some commodity price increases in the fourth quarter. naturally they've given way as the coronavirus news came out. if you saw a spike in commodity prices then maybe they could push those yields up the fed really seeming to want to be accommodative here that is why you have to be so much instructive it is not only our central bank but very likely that you'll get fiscal stimulus out of england post brexit and very likely as a result you'll get fiscal stimulus out of germany. that could put a bid below global equities as well this year i just think we have to be very careful. the other thing i want to point out here, carl, we started to see some signs, early signs of possible rotation. the semiconductor index late last week. you saw a lot of good names being trashed on up days in the market the market may be saying maybe it is time to rotate a bit i think you have to wait until you see the whites of the eyes there. i think that is something else investors are going to have to watch for here >> that did raise some eyebrows last week. thanks, guys good stuff by the way, a reminder do not miss a special report on the coronavirus outbreak tonight, 7:00 p.m. eastern time right here on cnbc let's get to some deals this morning. the big one that's gotten a lot of attention of course is simon property groups' decision to buy taubman or 80% shareholders will receive 52.50 a share in cash. for a sector that a lot of people have thought is dead. or at least mostly dead. this is certainly a sign of life now, if you take a look at five-year charts for the likes of simon or taubman or another company simon tried to buy a number of years ago you will see and sort of put in perspective some of the values of course as we know the mall has lost momentum. i think to say the least not to mention a lot of tenants. these are top line malls a plus kind of malls with very significant, very high end tenants. taubman thinks short hills for example in new jersey and others here in the united states and around the world, the taubman family as i said going to continue to -- it is going to be managed separately they aren't combining it with simon. the taubman centers still 20% owned by the taubman family who will have the right to sell to simon. simon will have a call on their ownership the next few years as well the key thing here is the 53%, 52% premium over what was already an effective stock price given there were some reports last week the two might be in talks. so it is a significant reminder, sara, there is still some life, some life in the mall, at least in the opinion of simon. interesting to see, slightly positive response from simon shareholders >> and not all malls are equal some have become much more fun and high end destinations and i think that quote says it all it'll allow them to invest in innovative retail environments for retailers and consumers. to me that means we'll see more restaurants and entertainment and more, i don't know, rides and experiences versus the traditional retail which has been slowing out it's also interesting this came off another deal they recently did for forever 21 >> yes it was somewhat as you could see even in the markets certainly unexpected at a price like this. again though, the markets are nowhere near what they were a number of years ago. pointed out, up over 8%. take a look at five years on that stock it has been nothing but down for so much of the sector. speaking of another sector where there has been a difficulty in finding any growth of course we talked a lot about hewlett-packard, hp, i think, and xerox. this morning xerox does increase its bid to acquire hp, inc, to $24. remember it had been 17 in cash, $5 worth of stock previously and they're saying a 41% premium now to hp's unaffected price they've been doing everything we said they would and at least in the view of xerox checking all of the boxes that perhaps a number of shareholders and certainly the management and board at hp seem to be saying would not meet their criteria in terms of locking up financing. in terms of now moving to a higher price and of course a tender offer goes along with that as well none of it has been enough at least at this point to bring hp to the table remember, we have said this might go as long as the spring and actually go to the vote of share holders. they are challenging of course for all 11 of the seats on the board of directors at another data point of course along the way or another thing that they have hit along the way you do have the full proxy fight. you do have the tender offer you now have the higher price. what you don't have is any conversations as yet between the two companies. interesting to note a move up in xerox shares at least here where they end up of course is the question if they ever do end up at the negotiating table. people close to xerox have told me they're willing to put aside all questions about what we call social issues. that is even who's going to lead the combined company, although it does seem very much apparent at least based on everything i've heard they would expect the ceo of xerox to try to deliver on the two billion plus in synergy they talked about and board compensation but so far, there has been no willingness on hp. they simply don't feellike their shareholder base is pushing them to do it. we'll see if that changes with the higher offer sara still to come, on the show, exclusive data on tesla. we'll reveal the big advantage the company holds over other auto makers. and later, it is the biggest innovation expansion for snack bar maker kind lar isoutoiswill join us at post 9 teth hr dcuss now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. shipsticks.com saves you time and money. - [spokesman] if you've tried colleg(group cheering)shed, 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 it's a masterstroke of heartache and redemption. the lexus nx. modern utility for modern obstacles. lease the 2020 nx 300 for $359 a month for 36 months. experience amazing at your lexus dealer. lease the 2020 nx 300 for $359 a month for 36 months. when it comes to your business internet, which is more important? ♪ ♪ okay, i wish i didn't have to choose. like the more i think about it, the more i want to jump to each room. what if i said you can have it all? ♪ ♪ comcast business gives you connectivity that goes beyond. that's what we want! that's speed, reliability, and security, all from one provider. touchdown! get started with internet and voice for an amazing price. call today. comcast business. beyond fast. getting breaking news from the department of justice this morning. we'll go to d.c. >> good morning. >> attorney general william barr holding a press conference now at the department of justice announcing the indictment of four members of the chinese people's liberation army for hacking into the computer systems of the ratings company, saying they have been indicted in this attackwhich happened several years ago. it impacted he says about 145 million americans in terms of their sensitive, personal data the attorney general here making a point that the chinese intelligence can use that data for not only economic espionage in terms of getting the data behind how equifax captures information itself on u.s. consumers and citizens but also in terms of building a massive, artificial intelligence data base to analyze how americans conduct themselves in the economy and use that for sensitive nation state purposes. a sophisticated hacking attack against equifax by the chinese government and now a response from the u.s. government in terms of the indictment of these four chinese nationals back over to you >> so is it progress that the u.s. government was able to identify who this was and name them and go after them are we increasingly seeing that? >> it is something that was done under the obama administration as well. the obama administration did indict a number of japanese nationals as well and identify them and we've seen american cyber security companies able to actually sort of get into chinese intelligence and spotlight the individual hackers who were sitting at the keyboard and actually get their social media posts and sort of reverse hack them and post images of them at birthday parties and things on the internet to show them that the americans are aware of what they're doing. but this is a rare step not something we see every day barr saying here in this press conference that the united states typically doesn't indict members of foreign intelligence services for gathering intelligence but in this case he feels this was illegitimate and it threatens the u.s. economy as well as the geopolitical situation overall. they felt they had to take this step obviously not a lot of chance here these individuals will actually be arrested and brought to the united states because the chinese simply aren't going to extradite them to the united states >> you spent a lot of time covering chinese cyber espionage. i mean, it is not just equifax, right? marriott, we could go through a slew of names where the chinese have been cited as the culprits. not quite sure what exactly they're putting together but they seem to be putting together an awfully detailed dossier on a lot of americans >> absolutely. attorney general barr just brought up this idea of the opm hack, the office of personnel management, which has sensitive information on government employees, every government employee including all of the confidential information that's gathered in terms of granting them a security clearance, so that is personal information about gambling, cheating on your spouse, drug use, all of that kind of stuff is gathered in those investigations all of that data was hacked by the chinese government, barr saying in this press conference about 80% of the cyber espionage prosecutions by the department of justice have involved the chinese. he is saying this is an intensive effort by the chinese government and this is the u.s. government's attempt to do something about it >> wow thank you. meantime shares of tesla higher again as the stock's wild start to the year continues. our phil lebeau in chicago with exclusive insight on one of tesla's key advantages over competitors. >> reporter: we're talking about batteries. we'll show you the data in a little bit first a little about china a number of people have said have they resumed production of teslas in china? i talked to eunice yoon. she said there are local media reports that the tesla giga factory in shanghai, there have been employees seen going in and reports that they have resumed production at that plant to what degree we don't know but certainly that is encouraging news could be one reason why the stock is moving higher today now let's talk about the battery cost advantage data. they basically break down the costs of electric vehicle battery packs and have been doing it for a number of years here is the latest data. look at tesla. the only company that uses cylindrical battery cells. that means they have a cost advantage. they are coming in about $156, $158 per battery pack per kilowatt hour. compare that with pouch packs as well as others, per kilowatt hour tesla is well ahead of the competition and the folks said that is expected to continue for some time. >> they have better battery technology right now, better battery pack technology. all the way up to the way that they control the battery pack and it is a significant lead >> take a look at shares of tesla over the last week and, yeah it's been a wild ride. keep in mind this data about battery pack costs per kilowatt hour, it's crucial because this gets to the heart of what will differentiate auto makers in the future when it comes to electric vehicles who has the lowest cost. who can be competitive with other auto makers when they are bringing out electric vehicles again, cairn believes tesla, because of all the research and work they've done will have the advantage for a number of years to come. >> phil lebeau, thank you. snack maker kind is branching out beyond its signature nut bars into what is called its largest expansion ever you'll soon find kind brands in the frozen treats, snack mix aisles of your grocery store with us now is the founder and executive chairman of kind welcome back nice to see you. >> thank you, sara, for having me >> kind has been around for a long time. you founded this in 2004 >> 2004. >> and mostly you've been doing bars talk about what drove this expansion into new categories now. >> so we've been in the bar and granola sector and for years dreaming of taking the kind sensitivity into other categories now we are entering the freezer, refrigerator, and temperature controlled >> you're going up against huge companies, not all of them doing well, but hershey, some of them have why do you feel that you have an edge >> we are the only snack company in the world where 100% of our products have nutrient dense whole ingredients. we want to take that kind promise, when you are in the freezer, refrigerator, wherever you want something nutrient dense and delicious you can find kind >> what about sugar? >> everything we have has lower sugar than the competition for example our frozen bar, around 10 grams. only twice the sugar in our traditional nut bar. >> what are you seeing in the consumer right now that led you into these categories? where are habits moving? >> yesterday i was at a chess tournament for my daughter and every snack there was empty calories it is really frustrating for parents, for people that -- we're trying to lead with whole fruits, whole grains it is really important for health i think that is our formula. always lead with healthful ingredients. >> are you finding you're getting better shelf placement in stores outside of say a whole foods type of grocery store? >> yes >> even in the traditional supermarkets, just more eye level? >> absolutely. there is a huge trend and recognition we need to shift the nation's health toward more healthful products for years it has been happening but it's accelerating. things that are truly healthful are getting more appreciation. things that have the halo get appreciation, where they are genuine they are gaining more traction >> i am curious how you think about the capital position of the company. i assume this requires a good deal of investment spending. you've obviously been thinking about it and preparing for quite sometime how do you measure success how far were you willing to go in terms of spending investment dollars? >> actually, david, what is interesting about kind is that since our inception we've raised very little money to grow. it's always been very, very humble, down to earth in all of our operations this did not require a ton of research we have an international partnership that required a lot of researchers and mars is our partner to help us grow globally we have a joint venture without them we would not do this without them they are entering 32 markets thanks to this partnership but relatively speaking we've been working with manufacturers, we control the brand, we control the formulas but it's not that expensive for us >> why have you never been bought by a mars or another major food company who -- these companies have been desperate for growth and buying smaller brands >> we love what we do. we love being private. that's why we chose mars as a partner so we could have a very long-term view and as long as we can continue growing in a sus tainl, holistic, long-term way, we'll try to not take short-term approach >> where do you think we're heading with some of your input costs? >> almonds are very tricky input. we buy 2% of the world's almonds. there is a ton of work going into sustainability to make sure irrigation is best in class. it is still a ton better than protein for animal sources or from dairy sources but there's a lot of fluidity in the space and we're trying to create very -- we're entering partnerships thinking five, ten years ahead to ensure supply >> i'm guessing packaging costs will come down >> so-so >> any forecast for how that might shape up later this year >> in terms of a world supply -- i no longer know precisely all the different input. there was a day when i was doing the packaging and walking up and down the streets >> you gave up that ceo role last year? >> eight months ago or so. mike barkley is an incredible ceo and partner. i am still very involved in the long-term view and strategic things we just acquired a company a few months ago and we'll do more of that but it is really fun because when we started i was literally walking up and down the streets door by door all the way down here to wall street starting at 7:00 a.m. on 122nd and broadway and walking door by door >> got to get the shelf space. that's the key i've known you for many years. you are an entrepreneur. it is interesting when i hear you say you just want to keep growing. i would assume at some point there is some price at which you sell this company. maybe it's been too high for anybody to be interested but do you really see yourself just continuing to grow the company as it is and perhaps taking it public one day as opposed to ever selling it >> kind is not just about making money but inspiring kindness do the kind thing for your buddy, for your world. healthful ingredients that are tasty but also inspiring kindness in one another. we have a initiative to connect children across the world. just so much fun we're enjoying it so much so there's a lot of work in our nation we need to do to bring people together, to discourage division and polarization. we're doubling down on that this year both through my personal foundation and through kind trying to do a lot of bridge building i am a mexican immigrant i was born in mexico i don't take it for granted. my father was a holocaust survivor for me rule of law, democracy, freedom, i don't take them for granted and i think we all as americans need to join forces to protect those values >> good to see you thank you. >>thank you, sara. >> founder of kind let's get a news update now from headquarters in new jersey and sue herera. >> good morning, everyone. here's what's happening at this hour president trump offering a $4.8 trillion election budget plan that promises a balanced budget in 15 years it will cut nondefense budgets by 5% while boosting the military and leaving social security and medicare benefits untouched. residents in northeastern thailand mourning the victims of that nation's worst mass shooting the attack was carried out on sunday by a single gunman at a shopping mall. a disgruntled soldier opened fire before he was fatally shot. at least 29 people were killed another 58 were injured. and a shocking upset in ireland's elections. the party historically allied and linked to the irish republican army receiving 24.5% of the vote. that tops the two centrist parties that have governed since the country won independence from britain a century ago and the spacecraft known as the solar orbiter launched into space late sunday night. its mission? to journey to the sun. to get a look at its north and south poles. it is expected to take three years to reach that destination. you are up to date that's the news update this hour carl, back downtown to you >> thank you very much, sue. after the break robots to the rescue how one company is using a tech to contain the coronavirus we'll explain. a reminder you can always watch us live on the go on the cnbc app. down load that today three members of faang at all-time highs today and the dow up 87. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets the immune system attack, attack, attack cancer. pd-l1 transformed, revolutionized, immunotherapy. pd-l1 saved my life. saved my life. saved my life. what we do here at dana-faber, changes lives everywhere. everywhere. everywhere. everywhere. everywhere. othroughout the country for the past twelve years, mr. michael bloomberg is here. vo: leadership in action. mayor bloomberg and president obama worked together in the fight for gun safety laws, to improve education, and to develop innovative ways to help teens gain the skills needed to find good jobs. obama: at a time when washington is divided in old ideological battles he shows us what can be achieved when we bring people together to seek pragmatic solutions. bloomberg: i'm mike bloomberg and i approve this message. the coronavirus death toll now surpassing that of the 2002-2003 sars outbreak. it has hospitals turning to technology to cope with the influx of patients our next guest's company says their autonomous robot which moves medical supplies throughout hospitals can dramatically supplement staff requirements while limiting cross contamination and exposure the ceo joins us this morning to talk about some of the innovation here. thank you for your time. good to see you. >> good morning. >> getting help anywhere there is an epidemic or pandemic requires human travel. it sounds like that is what you're trying to cut down on >> what we're trying to do is we increased staff productivity in the hospital using automation and robotics in particular the types of issues we're seeing with coronavirus are the types of issues we address even in the absence of coronavirus, which is as you mentioned the influx of patients and the demand it puts on staff so as you mentioned, we not only handle medical supplies but in facilities such as hospitals there's a lot of logistics flow in addition to medical supplies including soiled and clean lynn ens, trash, and meals as well. and those are all the types of things we handle in the hospitals. we do it automatically and again allowing staff to focus on more important issues >> so is it more of a routine kind of use, or are there other severe scenarios like a coronavirus or something else where the impact becomes more profound? >> certainly this is the first time we're seeing something this profound since we've been installing these types of robots in hospitals and we didn't design our business plan nor our product around the coronavirus in particular but we see spikes in patient populations all the time even in america whether it's because of the flu or because of seasonal diseases, or even people traveling from the north to the south or the south to the north depending on seasonal preferences. we see spikes all the time the other aspect is not only the increase in patients but the decrease in the supply of staff. that is available to staff these types of positions so our robots have been in use to handle these types of things for a long time and not just because of the coronavirus >> peter, what is your sense of when we have these highly contagious viruses like coronavirus or sars of how many health care workers actually end up being impacted and infected with the disease and are you actually able to fight that? >> that is a great question. i'm not sure i have the specific answer our products aren't designed and haven't been deployed specifically for that but our sense is that it's already very difficult for hospitals to get staff and the side benefit of using robots in hospitals is avoiding the contact between staff and patients as much as possible because not only do the staff travel from patient to patient but the staff of course go home at night so the amount that we can limit cross contamination and contact with patients is certainly going to be a benefit. >> how much do these cost? if i'm running a hospital how much is it going to set me back? how many do i need to buy or order in order to get the results i want >> it's a great question we supply robots to hospitals to fulfill all their needs in logistics. when we first started we specialized just in pharmacy and a lot of our hospitals would buy a handful of robots, maybe two, three, four to handle their pharmacy needs but as we continued to make progress we started to handle all sorts of other logistics, food, linen, lab specimens, etcetera, and designed specific models for those applications. and as our capabilities increased the number of robots in each facility increased so we have hospitals with as few as one or two robots and as many as 35 to 40 robots >> are you in china, peter, and working in these hospitals where coronavirus patients are >> the answer is yes and no and we do have an opportunity where we are implementing in china but that opportunity was sourced and started before the coronavirus started. >> all right we'll watch it closely, peter. we're trying to work our way around all kinds of innovations in the wake of this virus. thanks for your time >> thank you for having us still to come, two fashion icons making their way to post 9.the badgely mischka co-founde will join us next. your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk while our competition continues to talk. - [narrator] at southern new hampshire university we're committed to making college more accessible by making it more affordable. that's why we're keeping our tuition the same for all online and campus programs through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer and i said, "look we can do this!" - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu. but when allergies attack,f any the excitement fades. allegra helps you say yes with the fastest non-drowsy allergy relief and turning a half hearted yes, into an all in yes. allegra. live your life, not your allergies. have we reached thestock market peak? one bull is now on correction watch. find out more on trading nation.cnbc.com or "squawk on the street" coming up. welcome back time for our etf spotlight today we're looking at u.s. aerospace and defense ticker ita up more than 7% so far for the year currently trading up another 0.5% or a little more. the top holding is boeing which is on track for its fourth positive day in five and up 8% so far for the month of february just days ago steven dixon indicated his agency could conduct a certification flight for the 737 max in the next few weeks, guys, positive momentum for when this plane is going to get back on track. that's been boosting boeing's stock price. >> we had a conversation this morning with jim about how with the test flight now probably just a few weeks away the conversation is going to start to turn to how they market it, how operators deal with customer inquiries about am i flying on a max, does the name change >> which the new ceo told "squawk box" no name change so how are you going to convince consumers to feel good about flying >> time. >> time heals all wounds maybe. maybe just get a lot of safety checks out there meanwhile markets again, surprising people who pay a lot of attention to the premarket because the low was right at 930. started well in the red and currently up about a hundred points a record high on the nasdaq as we said you look at the five faang components, alphabet, amazon, microsoft all at record highs. and then apple kind of turned around on the heels of this reuters story citing sources that foxtron is getting clearance to resume production >> with lower yields and we're coming off a week where the s&p rose more than 3%. the nasdaq rose 4% last week we're building on that kind of momentum on this idea that the chinese economy will come back and by the way the chinese central bank and the chinese policy makers are going to simulate like crazy and add liquidity and juice to their economy to try to get it back. not to mention other central banks. that has to be part of the conversation with lower yields and why the path of least resistance for stocks continues to be higher >> there was a brief moment last week where value seemed to be in play but as often the case it was brief. growth is back all right. over to john fort now in san francisco. he has a look at squawk alley. >> we've had cloud storage company snowflake on "squawk alley" before. they are just out with a series g, $479 million and a vewe have ceo coming up to talk about why the raise and what's next. ♪ ♪ ♪ when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me. it is already working in cities like tokyo. which of your devices are protected by daily security updates? daily security updates... daily? i don't know. the only thing... i'm struggling with this. some providers you have to manually download updates to each device. comcast business securityedge updates every 10 minutes to help keep your connected devices protected against new ransomware, malware and phishing threats. every 10 minutes feels pretty good. comcast business security edge automatically helps protect all the devices on your network. call today. comcast business. beyond fast. welcome back stocks trading near the highs of the day just about there right now. to start this week off and consumer discretionary is a sector that is in big focus today. as you can see here the best performing sector so far today up 3/4 of 1% as we take a closer look at some of the components, the leaders there, we find under armour stock after some positive commentary over the past weekend. you also have tractor supply company coming higher as well along with amazon shares which hit a new alltime high in today's trade. and we'll end on l brands gaining traction after sources told cnbc it is nearing a deal with sycamore partners on the private equity side to buy victoria's secret. it is worth noting l brands is still up about 15% or so from the recent highs with the l brand shares certainly a focus today. now, sara, back downtown to you guys at the new york stock exchange >> thank you we will stick with the retail beat if you will new york fashion week is in full swing. the industry itself remains on corona watch among other things for designers and brands which have grown increasingly dependent on china a number of chinese fashion editors, buyers, celebrities, influencers are noticeably absent joining us at post 9 fresh off the runway show over the weekend, badgely mischka co-founders, welcome back. nice to see you both >> thank you >> thanks for having us. >> i went to the show. it was cool. a lot of sparkle how would you guys describe the state of the luxury retail market right now >> actually our sense downs in e regional area lately, and our sales in stores are fantastic right now. >> i agree i think that everyone's working twice as hard to keep the numbers up as they ever had to before but business is still to be done out there. we've got beautiful products >> what about the chinese demand factor how big of a market was it for you guys and for the industry, and what's happening right now >> it's a huge market. the population is enormous we have 19 stores there right now. we're increasing our store presence there as well for retail people are still buying clothes in china, too, clothes and shoes and accessories. >> did you have to close the stores because of the coronavirus? >> no. we didn't have any stores in the affected area. we were spared that. >> it is affecting us. after chinese new year they kept the factories closed for an extra week or ten days before they were comfortable reopening them, meaning we're going to ship our new product this season late, so it's a huge concern for everyone we're all sort of in the same boat together, though. >> is all your product made in china? >> a large portion of it is, certainly. >> because it gets delayed, you don't have any backup inventory? >> it's a seasonal product so if it has to be produced in that time period or else it's no good to anybody >> we talk to a lot of people in textile business who tried to adjust their supply chain, move to vietnam or somewhere else the answer in the end is i'm still reliant on china for my raw material >> the weak link in the chain. >> how close are you -- i mean how much information are you guys getting in terms of when people are going to show up to start making your product again and when it's going to get here? >> they'll be returning in ten days managers in the factories are there now. workers will come back ten days later than they would have >> february 20th >> yes >> how much of that sets you guys back in terms of getting your product to market >> when they do get back in the factories, they have a slow ramp-up ordinarily they'll have to do a much quicker ramp-up this time. ordinarily, it would take five days to get everything ready we'll have to do it in one day >> is it possible? >> if they put their mind to it, they can do it they can do anything all manufacturers, all designers are in the same boat, you know what i mean? so it's going to be very interesting to see how the department stores will -- how they'll be able to take in these late goods and seeing what pans out for the season >> right >> how are the department stores doing? because we got an update from ma macy's last week and they clearsing more stores, having a problem with traffic is there a glimmer of hope for this industry? >> i think there will always be somebody who wants to shop in a store. it won't ever be 100% online especially for luxury products you're not going to buy an expensive dress online you want to see it and feel it macy's is one of the lower priced retailers as far as we're concerned and they do need to find out which stores are profitable and which are not >> the ceo of macy's told "the journal" last week there's always going to be a place where people can go in and see multiple brands at once. >> there always will be. i still think it's a challenge for brick-and-mortar the department store has to figure out a way to make it a more exciting experience because, you know, i know, for example, my niece, if her mother were to say let's go, i'll take you to lunch and buy a dress at a department store, it's a total snooze to her. they have to figure out a way to make it exciting again >> have you guys shifted your business as a result of the weakness in department stores to go more direct to consumer >> we have in a way. we're much more diversified in all sorts of ways, even, you know, one of our biggest accounts, it's absolutely enormous, is rip the runway, huge >> and still growing >> still growing, yeah >> it keeps growing, keeps growing. >> is your favorite time of year when you get all those people in that room or start conceptualizing next season? >> right before that when all the girls are lined up in their outfits. we've had product coming in from all over the world, shoes from china, italy, the clothes are coming from new york city and from far east, all over the place, getting everything in one place at one time and seeing all the girls in hair and makeup, it's so exciting >> it's like a wedding you work on them like a mad man for six to nine months and it's over in 60 minutes >> mark, james, thank you so much >> thank you >> sara. >> yes >> what do you have coming up on "the closing bell" >> we'll be all over the tesla move higher. new data from td ameritrade about millennials and their interest in the stock, whether they've actually been buying as the stock has been running up. and today's closer, kkr, henry mcvey will talk about where he sees buying opportunities around the world. >> we're close to session highs, dow is up 88 as a struggling actor, i need all the breaks that i can get. at liberty butchumal- cut. liberty biberty- cut. we'll dub it. liberty mutual customizes your car insurance so you only pay for what you need. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ there's room for more than just the business you came for. ♪ whether that's taking in every moment... or capturing a moment worth bringing back. that's room for possibility. ♪ how far we can go, oh oh ♪ good morning it is 8:00 a.m. here in sunny san francisco, 11:00 a.m. back on wall street, and "squawk alley" is live ♪ san francisco, san francisco san francisco, san francisco ♪ ♪ san francisco, san francisco san francisco, hey, hey ♪ good monday morning. i'm carl quintanilla with morgan brennan at post 9 of the new york stock exchange. jon is in san francisco today in our one market bureau. a lot more with jon coming up this hour. three members of fang trading at all-time highs today with the nasdaq but we'll start with tesla, up again this morning.

Related Keywords

New York , United States , Japan , Tokyo , Shanghai , China , New Hampshire , United Kingdom , Texas , Washington , Vietnam , Republic Of , Beijing , Togo , San Francisco , California , Mexico , Germany , New Jersey , Italy , Ireland , South Korea , Hampshire , Poland , Chicago , Illinois , Britain , Americans , America , Chinese , Mexican , Irishman , American , Mcmahon Yesha , Chris Rock , Liberty , Oliver Chen , Jeff Bezos , Michael Bloomberg , David Simon , Johns Hopkins , Karen Cramer , Tim Cook , Bob Pisani , Carl Quintanilla , Laura Dern , Rick Santelli , John Fort , Eunice Yoon , Don Wood , Phil Lebeau , Cola Cross ,