Transcripts For CNBC Squawk On The Street 20240713

Weekly gain. Virus figures, coronavirus cases surging again, wall street still headed for strong gains for the week, s p and dow up more than 1 the past five sessions. The company beat on earnings, suspended its 2020 forecast on coronavirus uncertainty, and as well were going to be talking with the ceo of roku later this morning which also reported numbers. And jedi blocked, a federal judge haunting microsofts pentagon cloud contract after an amazon suit. For the second straight day the number of confirmed cases of coronavirus shot higher. Chinese authorities reported 5,000 new cases and 120 more deaths the death toll stands at nearly 1,400 and total cases into the range of 64,000. As increasingly guys, the conversations turning to diagnostics as opposed to the spread itself. Right there have been a number of articles that are very subjective about whats happened some of them say that, look, it could be a 24day incubation, so what they thought they were letting people go and some of it, i dont know if you heard secretary azar but said they wont tell us anything, which is obviously not encouraging. Some of it i think is just a catchup to what people thought it was the whole time, where you would see these two tracks, would you hear the government track and then 90,000 people off line so i dont know about you, david, but when i listened to the numbers, i think that theyre 100 phony thats i mean no, because theyre trying to catch up to where they really are, because remember, they put new Party Officials in charge. Few people doubt that they are not understated. Right the numbers, exactly what they are is unclear. But again, i come back to the larger impact, which of course is on the chinese economy. Right were watching, of course is how many people are reporting back to factories. We have been getting word from various ceos who joined us to have yet, yeti yes, the ceo joined us on the closing bell i was anchoring that, he said people who manufacture for them are headed back to work this week i this an opportunity to talk to ceos of other companies on air and off who have said similar things although frankly, nobodys got a Crystal Clear picture yet of exactly what it means for the capacity no. Their workers are coming back this week without a doubt. Not necessarily in Hubei Province, but throughout the country. Look, i mean, i was talking to someone who has had curtailed business but not that much they were saying, jim, youre talking about a problem in boston and its california its not, the country is a big country. At the same time, that world mobile conference was canceled in barcelona and that just tells you what people really think funny you mentioned that. Cowan, helene becker, one of the Great Airline analysts on the street talks about the cancellation of that conference in barcelona, and says all right, airlines are telling us demand exasia is fine and ed bastian said that today on squawk but this conference was nowhere near china not at all. The people i know, i dont mean to scare people but the people i know who are supposed to go there, it was kind of like you cruise im not going there. Im not going to risk going to barcelona. Youre not used to hearing these execs saying im personally, personally worried that has not been the story. Now were at the i dont want to get hurt right what it means for earnings remains unclear. Expedia numbers well hear from diller had to say in terms of it nvidia saying 100 million by the way, guidance for 3 billion quarter is above where people, where analysts that follow the company had been even with the 100 million reduction. Its rather remarkable how great that number was. And barry diller saying we wish all ceos would probably say, we think we know whats going on we actually have no concrete idea listen to this supposed to be yesterday, again, shot up in terms of the infected cases and i guess deaths i mean, do we have a pandemic . I dont know i have to believe that now the activism of every country in the world on this is going to contain it quickly now, by the way, thats a statement but no facts, and no knowledge, so you can all toss it but we dont truly know the extent of it thats why they canceled 2020 guidance yes i do think we could say the same thing right here really . We do, really we dont know. We dont know, and lets think about this if the cdc isnt allowed in, if theyre giving us no information, what does it say about the information . Does that make you feel like its better than we think . You know, they wont share how could you not share it with the cdc which is probably the most informed organization in the world . But to the extent that the Health Authorities in countries around the world are on alert, that there are only 15 cases here in the United States thus far, that there is no travel from china at this point that im aware of, that is not certainly highly restricted and or very much followed incredibly closely you have to think that it may be contained here or no, you dont even know that no, because i look at these figures from singapore, which may be as reverse as our country and theyre showing you a lot of people havent been to china have it. The persontoperson is really where we are singapore is not underreporting. Theyre actually reporting its very disturbing expedia shares meanwhile are up 12 they gave you the doubledigits. They did but they rely on travel, rely on people going places Royal Caribbean was telling a good story and you see the Royal Caribbean numbers . Yes you know, these nobody has any ability i dont want to give our viewers, scare our viewers but nobody david, youre right the 100 million from nvidia was about as close as you get. Carnival is at 55, 65 but if they say listen its not voluntary. We dont want you to have any cruises. Every time we have a cruise it cant land what happens if some government says it was a little municipality that banned last night this aida because they didnt want the people in the town i dont think you can really gain how many cruiseships are going to be floating hospitals its a terrible thing to say its all maybe maybe. Theres a giant meteor thats going to pass 3. 6 miles away from the earth, you know david, area 51. I doubt it. No, look, i dont like it when youre worried about your own fate i mean, i like numbers i dont worry about fate thats what i get, jim, i dont want to go there myself. Holy cow, top level executives lets take what the markets done this week, stocks are up, oil is up, yield is down is the lesson then it will be a disruption, it will be deflationary, but it will be temporary. Yes thats exactly right no one feels that this thing can survive the summer ive only read one scientist who says its going to survive the summer the narrative is its killed by the summer but it will come right back in the fall, if we dont have a vaccine and not enough Drug Companies are actually working on a vaccine because of course theyre not going to make any money. So the Economic Growth that has been lost is only postponed . Yes, its exactly the rap, from everyone. Including 5g, apparently as the journal says a lot of these guys building out 5g, pshh the 5g in the United States is not because of the virus. Its because of any number of different factors. Right you know, its all existential is what im saying its not last time at the top of my show i talked about the subjectivity the numbers are x. Turns out theyre y. The way its spread, the incubation period. We dont know that secretary azar on our air, he broke news he basically says you know what . We have nothing. I thought that we had something. Well we hope to learn more when he testifies at a budget hearing. That will be amazing. Look for headlines on that. By the way, a special report as usual tonight 7 00 p. M. Eastern time on the outbreak here on cnbc, a nice way to catch up on the headlines you might have missed during the day. A federal judge has ordered a temporary block on the governments jedi cloud contract which was awarded to microsoft competing bidder amazon filed a lawsuit claiming the evaluation process included clear deficiencies errors and unmistakable bias. Earlier we talked to amazons Senior Vice President of corporate affairs, jay carney. Its about ensuring that the government, the department of defense is free of political interference in these kinds of decisions that affect the capabilities of our armed services, and that as you said, there are a lot of protests in this arena this one, and therefore a lot of them dont succeed i would say this one is highly unusual for some of the reasons that weve laid out in our filings. Pretty unusual to have this kind of political interference that was seen in this case, and we just want independent legal review to assess what happened here spokesman for microsoft says the company is disappointed with the delay but believes theyll ultimately move forward with the work, which is not an insignificant amount over ten years. It is amazing david was talking about the sprint, that was a surprise, okay sprint doubles the judge in sprint, yes. I argued, yes, of this weeks news that was perhaps one of the most surprising things we saw. Here its an amazing win, right, with the challenge and both stocks were down. What does it say in its not that significant right exactly. Both of the businesses which we know are growing so quickly, azure at microsoft, a wiws, the leader still by far but microsoft growing very quickly in cloud and its a big contract over years, but that 10 billion number was fought, they fought very hard for it it wasnt just microsoft and amazon it included other players as well, oracle, certainly. Obviously its the president intervening. The allegation is that the president s animosity toward jeff bezos, and the Washington Post played a role here in trying to can i invoke the attorney general of the United States who also says President Trump has to stop interfering in the criminal Justice System he just said stop tweeting. Yes he didnt say stop interfering. The president today tweeted again about that it will be interesting to see if they in fact are able to depose some of the witnesses its an important story, as whether or not its really important to the future of either one of these companies in terms of their cloud, probably not. Read the nvidia Conference Call. I was just going to go there. And talk about their incredible growth in davis center, a revenue of 968 million, up 43 year over year the reason why they have invisibility, no other company ever said they have they said we have visibility because they havent been able to meet the demand of these two with or without the jedi mostly we like the name jedi. Almost 3 billion in fiscal year 20 no, it was just so that business 2. 98 billion that i doubledinlgdoubledit beat the data center is becoming a lot of it is becoming conversational like one of the things, get this, you say take me to the nearest starbucks thats well rated on yelp. I just invoked yelp, and it will say sure, go 300 milliseconds it answers. Can you imagine . David, thats much faster than you answer a lot of times you remember in the podcast you hear that silence. Thats david pondering called dead air a. I. Needs acceleration dont worry jenson wong will get me a chip. Hell fix you before you know it ill be speaking to you in mandarin. I think he could have dog speak. Nvidia is the name of my dog, remember cramers mad dash after the break and more detail with roku and pins and yelp and a bunch of others. Squawk on the street continues after a short break. We set out to make the best bike on the market, find the best instructors in the world, and tie it all together with a worldclass software experience. We ended up creating, as you all know, so much more. Peloton is truly a category of one and were just getting started. Now, lets do this. Together, we are going further than we ever thought possible. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk Industrial Production is down 0. 3. 76. 8 utilization rate and 76. 8 thats a little on the soft side as a matter of fact the last time we were under 77 was october of last year and there was a revision on utilization that took last months rate from 77 flat point 0 to 77. 1 so slight improvement there as for the marketplace, there is this notion out there and makes sense much of what is going on with Global Markets has to do with coronavirus, flight to safeties of various Foreign Exchange relationships or you see sovereign yields all seems to be the same twos, tens, dollars, we are down on the session on treasuries but still up on the weak or unchanged. David, back to you rick, thank you lets get to a mad dash counting down to the opening bell, end the week of trading in about 12 minutes from now. Canopy david, most of the cannabis stocks, when they had their quarters, they read like the guys were high on thc when they wrote them incoherent, but theyre funny. Whoa. Its disturbing, but david klein is the new ceo i know this guy pretty well. He used to be the cfo of constellation, so hes actually real okay. So they had real numbers. The pot stocks in ge, they had a lot in common with the fella who was the ceo a couple ceos ago he who shall not be named this canopy is amazing and david, 124 million in rev, people looking for 105, gross margin 52, people looking for 35 so this was you read this and it reads like the guy was actually on just cbd and not thc and the line that jumped out at me is, this cannabis infused edible chocolates is a home run theres a lot of speculation that they have a spiked seltzer thc. A lot of things in the works here wow we all know or any of our viewers certainly who have been following this know what has happened this group. Horrible does this help or is this really just no, its real remember, they are, remember this is constellation, owns a big piece of it. They dont have a spiked seltzer but right here is when you realize that this is a company thats grown up. David, this is right now right now but right there, right here is when they switched this is when they switched from Recreational Cannabis to just plain old cbd. Got it. All right. Stay tuned. This is completely theyre high as a kite right here, this is when theyre using, the chocolate. They ate the whole bar instead of the square. A giant blunt wow david. Smoke that. I didnt know they used blunts all right, were back after this hows the it department liking the now platform . Every time it takes care of something for us, we celebrate. How often does that. Got it. Servicenow the smarter way to workflow. 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Make it ship sticks. the opening bell is brought to you by nuveen, a leader in income, alternatives and responsibility investing youre watching cnbcs squawk on the street, live from the Financial Capital of the world, the opening bell in about four minutes busy friday here, some mixed economic data. Retail sales best exgas in five months but we got Industrial Production and of course boeing and unseasonably warm temperatures no the helpin s no. Glad you mentioned the latter with the exception of the canada goose in the world people are out and about and comparisons are easier it was the warmest january all weekends were available, someone who owns restaurants and have lost two weekends in january, its just your whole, your month, we had a bad month because of weather and you didnt have one this time, holy cow, no days that you missed certainly not, in the northeast it was rarely ever the country incredible indoors watching television shares of roku are up. 4. 6 million new customers over the december quarter thanks in part to new offerings from disney and apple, better than expected revenues, full year guide largely above consensus. Well talk to anthony wood later this morning on squawk alley. Interesting forecasts on the percentage of households that will cut the cord over a certain amount of time they think close to half yes amazing. 1. 1 billion revenues for the year, forecasting a 42 year over Year Growth Rate in terms of guidance, i believe but man, its an expensive stock. I mean, 17 billion market cap coming off a 1. 1 billion revenue to put it in perspective. 42 revenue growth, yes, they are doing very well as this platform there is some question as to whether theyre going to see competition from our Parent Company offering that we have not the peacock offering but the offering we also are giving people in terms of their use of ott products well, the Conference Call was really about disney plus about all the different streamings this may have been one of the biggest beats. Im surprised people were surprised. It is the proxy. If its the proxy, people are looking for this, and it delivered entirely the numbers year over year are really amazing. Net adds 4. 6 million, thats a lot in a quarter its a winner. What time is the ceo in the 11 00 a. M. Hour. You got to remember, hes the least hype artist ceo youre ever going to have ive tried to get out of him what he thinks is the ultimate number of cord cutters you should give it a shot, david. I will not be a part of that. Carl, hes fantastic. He is, komcomes on every quarter. Why arent you getting into original content buts happy to being agnostic no matter what. The other big mover yelp misses bytwo cents, revenue shy, marketing expenses up new cfo, jim i see barclays cuts to underweight, rbc cuts to sector perform. People are like ooh, new cfo, bad. Are they the odd man out i dont know remember, google uses any algorithm it wants in the end the antitrust guys have to focus on the algorithm change of which i dont know, i think google is sensational. I dont need yelp anymore. Yelp is a feature of how many new accounts and how much money the new accounts want to spend [ cheers and applause it was not great [ bell ringing ] everyone is beating. Today is the anniversary of youtube, by the way, founded today in 05 really . Imagine what theyve done in 15 years the last quarter, people talked about the breakout. Breakout on youtube numbers lower than people thought they would be but i told you they have a low benchmark so now they can beat it. Yes, i was surprised it wasnt bigger hulu is the one im surprised is really big sorry, huel hue ll ll lly hu. Indonesia Energy Corporation celebrating an ipo tesla pricing at 767 what a gift evercorps is typical. Keeps their underweight goes from 250 to 550. Painful what are you doing . Why publish at all . I dont know. Its like the fella from cowan who gives the forecast on the coronavirus every day and like one day its pure and the next day its out of control and the next day its done and the next day its cordoned and next day its out of control. The gift they gave you if you got 767 they gave you 30 points and remember, a lot of this, my work says is because they want to put up more factories than they have. Its not because they need a war chest. They need to build more cars do you think, david, ford needs to build more cars no. Im pretty confident thats not the issue right now. Car guru numbers. Disappointing wow. What were the numbers i have it in front of me. Directionally weak but who knows if thats about demand for cars overall, jim the method of the way theyre selling cars now i dont know. Anything car and anything 5g seems to be almost on hold but that could be china. I mean selfdriving cars on hold but thats because of the calculations its clear from nvidia you need sxr thatthats noto. 5g, david. Expensive the towers. To blanket the country because you need the space stations and thats not easy in the United States and tmobile and sprint being held up for as long as it has still hasnt closed, of course remember were now focused on what the price cut will be if they ask for it from tmobile for sprint and what negotiation will take place, waiting for the California Public Utility Commission it will close, though, it seems highly, highly likely but my point is its still going to end up being two years until they can really get going in terms of their Capital Expenditures in a more significant way in terms of 5g any number of reasons why in this country china, they were moving much more quickly but right now theyre dealing with Something Else its pretty, like the barcelona conference, again, personal safety of the ceos, not of the rank and file, david. Suddenly almost like a Bernie Sanders thing. The ceos are as scared the average ceo of a multinational flies a lot. Theyre all over the place and probably in asia a good amount, too. Travel all the time. I know. I have my mask for airplanes fist bumps for everybody. Wuhan shake, that was an elbow. Elbow with the ebola virus for dr. Br bristow the reason he felt safe s was the elbow shake home depot is in the green wells thinks spring is going to be good. I talk to guys in that business because im a gardener. One of the things spring is going to be good, like the coronavirus, if the weather is good, it could be good the real thesis i think underneath is that last year the weather was so bad, its almost impossible to be as bad. Three key weekends in may, two weekends in june its pretty hard to lose all those again so the compares will be excellent. Micron is the other big s p winner right now a great stat of the 29 companies in the stocks that have reported, i think almost all of them have guided up. I got to check the numbers true. Guidance under the semis has been almost uniformly positive well, micron was selling at five times earnings in the last quarter, and the price target has gone uhm dramatically. It will start getting a real multiple the sheer the pricing by the way of drams has gone up and the flash sup, too right that was the shortest cycle, the shortest down cycle in history. For the chip . Yes no, i didnt know that. Shortest in history how long do we date that down cycle for . How long was it . About 18 months and typically theyre over two years . What yes the shortest was, what, three years before that. Speaking of chips not necessarily those, nvidia is up over 7 . Absolutely. I know you comment on Conference Calls i read through that Conference Call should i read it now you want to get a sense for the future and kidded about accelerating ai but theyre talking about trying to learn some of the new terms for their chips for Graphic Design and games. The gaming rate trace is fabulous right, light the way they can have light and shadow in the games. What i saw, this is you mentioned inference earlier in terms of how the chips are going to help in terms of language and immediately getting to the right answer. When i talked to jensen what they can do in terms of light t reminds me of my art history classes in college you know, they talk about art. Like the shading remember the shading, the tectonic shading, the breakout, tectonic shading thats what they speak of. Of the perfect look, rembran rembrandt, they do realist versus expressionist, post impregsist david, they are still on top of their game and thats why when you look at the video game as strauss said you cant tell the difference between real and not real its that perfect. Were going to have the holodeck like star trek everyone walks out and seems real i can create that room of five holograms and talk mozart, they are so close to that. They are so on another plane youre conscious they passed star trek like two years ago live long, prosper, beat earnings, beat the estimates i want everyone to read it, because it is like when youre growing up, theres like these cartoons you think will never happen they are, david, beyond marvel they are that said, jim, shareholders who had the stock for some time, they remember that incredible fall it took in the fall of i mean it was fall of 18. Im so glad you mentioned that that was bitcoin it went from right here, this basically right around where it is right now to here it is. I have it. Seven bucks a share. I calculated it and what happened is that the bitcoin, the cars they were making they didnt realize could be used for bitcoin and they were able to be returned we would go online and see the pricing on ebay of the return graphic chips. Right but that was it the business lines are much more sustainable than being in the Bitcoin Mining business. This is google trying to this is amazon trying to be able to say, what was that you were asking about i mean, i think you can make it so it even speaks in your idiom, in your personal idiom the human language. Thats why i say its you i could be talking to faber and everything faber says is like kramer, youre a genius. Youll be saying that endlessly. Really. Cramer, how did you come one that i could program that so you wouldnt be mean to me once they detect sarcasm, siri goes, yeah, right. My wife arranged literally a gettogether in poland, where no one spoke english, simply by asking siri please translate, i need to you get together at 8 00 at our house for pierogis. What actually happened . Everybody showed up at 6 00 and they were having what . Spaghetti . No. All right, just no. It was pierogis. We walked into the office wondering how pins would fair at the open, pinterest as the piece that facebook is quietly released a pinterestlike app called hobby, which helps you document and remember the things you love to do, as they said pinterest responded by saying its not really doing what we do, and the stock has come off of the early session lows. Another example of facebook perhaps going where the money is it was down, pinterest was down about a buck and a half when they announced it they came out and its funny, those guys are not subtle. We do, this hobby this pinterest had a great quarter. Im surprised its down as much as it is it was an uberlike quarter in terms of their desire to make money. It was a very good quarter. Amazon, facebook, alphabet, apple, all up. Is that maaga i did not mention microsoft its up, not down. Thats the amazon challenge we move deeper into february but still, amazon 17 for the year those are all reflections of nvidias Conference Call because we didnt know that all of them were overwhelmed with inference. Thats machine learning, thats the ability, again, 300 milliseconds answering you about what you want. They talked about improving bing bing i didnt even know bing was still i gave up i thought it was crosby. But bing could be back and bigger than ever i dont think so. No . I dont know. Bing is i dont know. Dont put satya, dont put anything s jeans is coming back, too, right around the corner. That was cool it was like the best dry cleaner near you i dont know answer things like, i dont know. You ask siri ever to set your alarm . I dont use siri. Every time she says something its like please set my aalarm all right, its set. Please hit my alarm. Its like, you got it. Its fantastic how much siri do you do . None. I dont like to talk at things i prefer not to talk at all. For podcast purposes im disgusted and rolling my eyes. And i certainly dont like talking to machines. I love talking to machines. So much better than wives. She doesnt listen so its okay she doesnt know i even have a so she called me yesterday during the show wayfair rebounding news laying off 500 employees, about a quarter of the workforce what do we make of the companies managing ahead releasing head count . Now what you have to do post uber is to say listen, we are sacrificing revenue for actual earnings that was the playbook. Wayfair has to do that casper, the unfriendly ipo has not been able to do that by the way, smile direct looked bad, bad publicity there casper is coming back. Is it up . Its up 16 cents. That is just has not been its been suboptimal to use the term illadvised pricing they started the range 17 to 19 and the person who came up with that, by the way, is now its his firm called a legendary wall street funnyman. This has not been a good outing last week closed above 15. You got to go back a little further, guys. Give us the twoweek, not the oneweek casper is making a move here. Did you lie on the bed i didnt. Do you do anything . Im getting jensen to give me a real partner nvidia really accelerate my ai, i promise and you can program in that thing jim is the smartest man ive ever met. I dont think hes had a stock pick he doesnt like youre incredible. Your brain is something that should be in the smithsonian one day. Well yeah. Shakespearean finally, guy, really quick, cisco once again a drag, the worst performing dow component, as dow is going into the red well, the stock did make a move above in the last half, last 45 minutes it went from, went over 47 and come right back down remember, drams also are a cost for them you dont want to see drams up. Its easy comparisons in q3. You cant sell it because q3 is a turnaround anniversary what are you looking at . Im looking at exxon. Were talking tech. I, well, oil and gas is tech. It is tech due the revolution is all technology over the last 15 years opec cant keep it up delta is going Carbon Neutral starting next month spending 1 billion to do that how about the fact that the trillion Tree Initiative is the terrace between Mark Benihoff and the president. Mark told me many times no ones against trees. No one. No one. New hampshire Bernie Sanders, get this, i mean, apparently, because i dont know, hes not against trees. Not against trees because hes from vermont a lot of trees beautiful state that is how you ultimately, what is going to happen is youre going to try to be Carbon Neutral. Hes actually from brooklyn, where a tree grew also a tree did grow in brooklyn lets get to bob pisani. We are up the s p futures retail normallyt mover, down six or seven points. Core retail points which gets to the consumer weaker than expected u. S. Consumer thats all important so keep an eye on that in terms of sectors, they still believe its going to be short term on coronavirus. Look, semiconductors holding up, china etf holding up, consumer kiss cessionary staples, banks weak on yields, 1. 58 on the tenyear yield speaking of bonds, big inflows into bond funds. Bank of america thought it was a record for bond inflows here the biggest bond etf of all, agg held up very well. Its the inflows that matter take a look at whats going on in terms of the strategist commentary, jeffries says the risk, i think theyre right, potential for outbreak somewhere else havent seen that yet. Bank of america said the ushaped recovery is more likely to be an l due to the coronavirus and poshlly the u. S. Elections. Bank of america also said were holding up so well because of the powell put and other central bank help thats around the world. Take a look at some of the coronavirus stories, Royal Caribbean you heard about that, canceling some cruises impacting their fullyear results. Nvidia had very good numbers upbeat forecast up 6 despite potentially impacted and expedia barry diller, they got a beat here the analysts over at benchmark upgraded them and say theyre giving them a pass on coronavirus, an interesting comment there. You see big move up there on the Positive Side for expedia. Europe, this idea of the global bottoming in the economy the numbers were not good on gdp over there they tend to compare quarter over quarter rather than year over year im showing thaw eurozone up 0. 1 germany virtual lly flat. Not much of a Global Recovery in europe overall thats a concern despite that, even europe is holding up pretty well keep pointing out the stock 600 the s p 500 for europe sitting at an historic high. We are a little weaker, still over in europe we were positive earlier in the day but an historic high even carl over in europe, they still believe the impact of the coronavirus is going to be fairly limited, but those economic numbers, they need to get a little bit better or well have problems in the next couple months guys, back to you. Bob, thank you very much. Speaking of which, could 100 retaliatory tariffs come for champagne and french cheese . The u. S. Trade rep. Is expected to make a decision today regarding the tariffs that imposed on certain eu goods and might opt to maintain them, retuesday them or increase them to 100 which could have implications for the wine and spirits industry ive seen reports that some purveyors and store owners are going to d. C. To protest this, that they think this is going to be a big deal. Cheese and liquor, people in the cpi liquor is important. Theyre up but we had owners of some of the businesses that will be impacted, there are plenty of employees here in the United States who are, who work for purveyors who bring it in and then distribute it its not an insignificant business and jobs will clearly be lost. Do you think that these tariffs could help kraft cheese . Im not sure what could help kraft cheese downgraded to junk a few moments ago. When you have that kraft cheese it comes in cellophane, makes it easy to apply the mustard. Shares are down again on i use kraft. Do you take the cellophane off . On a Grilled Cheese you got to go kraft. That is true, the orange cheese by the way, do you know a lot of it is cheese a big percentage is cheese the Rating Agency is pressuring them on the dividend its funny we pointed this out yesterday dividend yield is approaching 6 its 5. 8 they cut the dividend yield and it still goes up how do you like that they didnt cut but no, its a joke geez i wanted to make sure you werent misleading see the stock goes down really big, david, the yield goes up. Not the dividend the yield goes up. Why are you trying to confuse people you said the dividend goes up you said when you cut the dividend, the dividend goes higher that its not true i didnt say they have not cut their dividend have you ever had velveeta . No, rarely. Its supposed to survive thermonuclear war. You could eat that with that spam thing you had that day, pumpkin spam another highlight whiz whip when we come back, roku shares had a red hot run over the last 12 months, up again today. 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Talk to your advisor or consultant for investment risks and information. Jim what is on mad tonight . Mattel. Really big turnaround going on there. And dominion tremendous from the data centers. Very exciting. Doesnt sound like it is but mattel is the turn talking about the barbie turn. Really. I didnt know that i saw the quarter. Been a tough business you think fridays are having can we do a couple put a couple fridays and build a trend here i dont know. I want to watch this coronavirus. Everyone is just fearing what the numbers are on monday. Yep or tuesday tuesday, right. They dont have any president s well, president xi they got a holiday up there. Maos birthday no joking around well he is president for life oh, yeah . President for life how long that going to be . Great question. Well see about that. Have a good weekend, jim see you tonight. When we return finding a cure for the coronavirus. The uk government partnering with a Company Working toward a cure well talk to the ceo in just a moment people know aflac. Aflac . But not what they do. So were answering their questions. Aflac is auto insurance, right . No. Uh uh. Is it Homeowners Insurance . No. Uhuhuhuh is it duck insurance . Nope. Ahhh do they pay me money directly when i get sick or injured . Yeah. Aflac you got it. You know aflac boom get help with Expenses Health insurance doesnt cover. Get to know us at. Aflac dot com. Its 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. High protein low sugar tastes great high protein low sugar so good high protein low sugar mmmm, birthday cake and try pure protein delicious protein shakes welcome back to squawk on the street. Rick santelli here with the last breaking news for the economy of the week were looking at december for business inventories expecting up 0. 1 of 1 that is exactly the way it turns out. Up 0. 1 of 1 no revisions lets move to the money ball number university of michigan sentiment. For preliminary read february expecting something 99. 5 100. 9. That is the best going back a ways actually. That is the best since march of 2019 when we were 101. 4. Lets look at the Current Conditions 113. 8 versus 114. 4 expectations moved up from 90. 5 to 92. 6. Heres interesting oneyear inflation remains at 2. 5 thats really fascinating, of course, because oneyear inflation at 2. 5 still remains the highest level since september. We dipped a bit from 2. 5 to 2. 3 in the five to tenyear outlook. Interest rates, well, they just lost their gains for the week on the long end the shortened is still clinging to them. Al all maturityies are down rather big for the session, carl. Back to you. Thanks so much. Good friday morning. Welcome back to squawk on the street. Im Carl Quintanilla with sara eisen and david faber at post 9 of the New York Stock Exchange market was hanging in at the open slipping a touch down 13 on the dow. S p up 1 as we have a lot of headlines today. Our road map for the hour begins with disappointing consumer data, strong earnings, and virus fears. Stocks are still on track for their second positive week in a row. How you should be positioning your portfolio the race for a coronavirus cure we will talk to one company backed by the bill and Melinda Gates foundation on its latest Vaccine Research big execs donating big bucks from Reed Hastings to warren buffet the impact of the csuite on the 2020 president ial race the latest on the coronavirus with the number of confirmed cases climbing even higher for a second straight day. Apple reopens its five stores in beijing. Eunice yoon is there in china and has the latest for us. Reporter thanks so much, sara Chinas Health officials raised a lot of questions when they released numbers that had been revised down ward. Officials said that Hubei Province the epicenter of the outbreak had double counted some of the dead. However, they didnt give any explanation to why other figures had been lowered so that just raised a lot of speculation here especially on social media as to what is exactly happening. The main theory is the leadership here could be trying to get a better picture of whats happening on the ground after it cleaned out the local officials who have been very unpopular yesterday. Now, the Chinese Government has been insisting that it is very transparent. The Foreign Ministry said today that it is open and that the u. S. Is welcome to join in the fight against the virus. The ministry was responding to the white house economic adviser Larry Kudlows comments when he said that he was disappointed that the u. S. Wasnt going to be let in of course, businesses are all very confused about whats happening. I spoke to one supplier who said that some of the change in the numbers really confused him. He doesnt know what is going on but businesses are trying to get back to normal apple has opened its five beijing stores they put in temperature checks and other prevention measures such as managing the number of people that could be in one store at any given time. There are of course other companies that are seeing trouble ahead, one of them Royal Caribbean. The cruise operator said that it is now canceling 18 of its cruises that were set to sail in Southeast Asia and that is going to affect its earnings per share. Guys so, eunice, one of the confusing factors about the numbers that keep spiking is as you mentioned, and people are trying to figure this out on wall street, is the trajectory of the disease different in other words, is it getting worse . Do authorities comment on that reporter no. They didnt say things are getting worse or put out anything other than positive comments, but the what really shook people up today was when we saw the death toll lowered and then the number of confirmed cases also lowered but without any explanation. Again, that just created a lot of uncertainty about exactly how well beijing is managing the situation. In just the past hour the state media said that anybody now who comes into beijing is going to have to undergo quarantine for 14 days. So even though the authorities are trying to make it seem as though there is a positive picture that things are the trajectory is better, that things are improving, on the ground the restrictions are getting much tighter eunice yoon, thank you. And a reminder, dont miss our special report on the coronavirus outbreak tonight again at 7 00 p. M. Eastern right here on cnbc for more on the coronavirus and the market were joined by crfa sam stoval and our own reporter Consumer Sentiment is not a problem at this point. Not a problem at all. Two indicators i look at to see whether they were heading for recession is year over year percent change in Housing Starts every recession since 1960 was preceded by a double digit decline along with that we had a double digit decline on average in Consumer Sentiment. And neither of those indicators is flashing anything other than a very bright green. Same thing with triple dollar or triple digit oil. Generally you want to see that right among all the things that have to line up that is not in the picture. I dont think the question right now is the market kind of in suspense as to whether were typing into recession. What i find fascinating is the market seems to be able to find comfort in the lagging economic points in the United States that look good but we dont really know if we can extrapolate that through this quarter or beyond so the market continues to kind of say, okay the bond market is showing some worry. Were hiding in the parts of the stock market that arent quite as directly exposed to what were afraid of right now. The question is, how long that tension can continue its not all great. Retail sales if you go into the core control group, which actually feeds into gdp was zero and the expectation was for a rise so are there mixed signals as to where the consumer is going . I would say mixed signals ive seen other people slice that number and say, oh, its okay if you look at it. I think the consumer i dont think the consumer is aggressively strong, has ever really been all that valid its been steady i think it is hard to come off that idea at laeft so far that the consumer is at least steady. It feels like it would take a lot more now for the market to seriously get unnerved by a coronavirus headline, right . Why has that happened . I think historically if you go back to 2003 with sars, h1n 1. Ebola, zika, mers, etcetera, when you look to one, two, three months after the first u. S. Reported case every observation was positive with the average gain three months after being more than 10 . So basically history tells us this is something that will become a top line event but not end up becoming a bottom line event. As we said with jim a moment ago, maybe some disinflation in there and thats what bonds are saying possibly. I mean, the fed basically told us the last time that fed chair powell spoke was lower for longer because they want to make sure that they can get that pce number up to and maybe even slightly above their target of 2. 0 they know how to fight inflation. They are not very good at fighting deflation high liquidity, slow growth environment where the United States market, both stocks and bonds seem like the haven. That is probably what the markets are saying still, the uncertainty factor does appear high were questioning the accuracy of the data coming out of china. Were questioning how quickly this virus is spreading. Are Money Managers that youre talking to and investors youre talking to surprised by the markets resilience to all of that i think there is a general surprise but also they probably wished there was more of a dip i think the answer to the question of could we be blind sided by something comingout developments in this story i think tell me where the market trades to if the market gets even that much more stretched, evaluation continue to build, and earnings estimates dont go up that much, that creates the vulnerability right there. B of a is out today, sam. They count 800 rate cuts since the crisis around the world. And they say we remain irrationally bullish because positioning is not yet euphoric. You got any problem with that . Well, a little bit. I mean, i think the dow is ensnared in a tractor beam right now and being pulled up toward the 30,000 level and i think as we make each step we are getting more and more vulnerable because the pe on forward 12month earnings on the s p is 19. 5 according to s p capital iq consensus last time we were that high was coming out of an earnings recession in 2002. So were almost you know, at the highest level in almost 20 years. So you think 20 is the ceiling on a forward pe . The last time we got to this level we did see a minor pullback in prices i think that basically we need to eclipse that 30,000 level, which becomes a rusty door thats going to require several attempts before it finally swings open. They did put it on the cover a couple weeks ago i do think that b of a call, its plausible hes been right over there about saying, look wait for people to get really super aggressive the question is, how much are you actually playing for now how close are we to that moment when we do get real reckless or real excessive positioning im not sure one of the just going back to the coronavirus and the markets resilience and the fed is that jay powell this week said, were watching the coronavirus as a down side risk. We stand ready and willing to act. Thats all the market needs to hear sure. But i dont the parts of the bond market are even pushing for the idea of a march cut right now. Your question is how big do the markets eyes get on Something Like that and does it come on time i agree with you thats the back drop and the back stop to these markets. Did you see german flat gdp expect ags for a rise in gdp singapores Prime Minister overnight warning of recession a lot of asian economies already feeling it mexico cutting Interest Rates preemptively this is adding up to be a big weight on global growth. It is and i think youd say, yes, and the banks and the Energy Stocks and the transports arent doing anything so i think that might be where the market is trying to kind of sequester the pain if it can finally really quick on political dynamics is the market applauding bloombergs surge, discounting a sanders nom, what . Possibly discounting a sanders surge, figuring were not going to be changing horses in mid stream. Lets continue with the Current Administration and we dont inject any additional uncertainty. With the president s reelection odds having been moving in sync with the market high, i think however you want to slice it what it means for the democratic side and job approval and gallup sentiment. All that stuff guys, have a good, long weekend. See you later still to come the election view from the csuite. Just which candidates are proving to be top picks for u. S. Ceos well dig into the fundraising details. And a reminder you can always watch us live on the go on the cnbc app down load it today robinhood believes now is the time to do money. Without the Commission Fees and account minimums. So, you can start investing wherever you are even on the bus. Download now and get your first stock on us. Robinhood. vo than just the business theryou came for. More whether thats getting a taste of where you are, or bringing some of that flavor back home. Thats room for possibility. Lets get to living when it comes to your business internet, which is more important . Okay, i wish i didnt 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. Thats what we want thats 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. U. S. Ceos giving more than 2 million to president ial hopefuls in the Fourth Quarter of 2019 as we of course get closer to the election we have a look at some of the big names behind some of those donations. Robert good morning, david the nations top ceos did give over 2 million to political campaigns in the Fourth Quarter. Most of that to republicans. The cnbc analysis of political spending by ceos of s p 500 companies shows that 12 of the top 15 spenders gave to republicans or republican causes but the two biggest donors were both to democrats. Reid hastings the ceo of netflix was the biggest donor in the Fourth Quarter writing a 500,000 check to the Senate Majority pac, a super pac aimed at helping democrats in the senate races the second biggest spender was warren buffet who gave 245,000 to the Democratic Congressional Campaign Committee that helps democrats protect their majority in the house now, ranking third was jay adair the ceo of Auto Salvage Company copart and gave just over 200,000 to republican causes with 95k to the Republican National committee Jeffrey Sprecher of the Intercontinental Exchange gave 100,000 to the rnc. You got fred smith of fedex, greg brown of motorola solutions, and lance ryan of Conoco Philips also among the biggest republican donors. These are obviously small numbers especially relative to the big numbers were going to see going into this year, but we will bring you them on a quarter by quarter basis and see how they grow into this election always interesting to get a pulse on that, robert. Thank you. Thank you for more on the ceo strategy so to speak for the 2020 election we are joined now by the New York Times Pulitzer Prize winning columnist jim stewart and also author of deep state and thats been back in the news hasnt gone away but certainly is lets start with the campaign. Curious to get your thoughts in terms of the roles, corporations, and ceos in particular, play here. Obviously they are a small graup b group but very influential because they control a lot of spending power it is very interesting what is happening here i know many ceos and it is no surprise they tilt republican overall but i think the one thing you can say to a near certainty is that few if any of socialists and as you see somebody like Bernie Sanders rising to the top of the democratic field, they are going to be opening their wallets probably for republican congressional candidates i think well see more of that a lot of the contributions weve just seen i think to the Democratic Congressional candidates both in the house and the senate has less to do with the individual ideological leanings of the donors and more of a desire to keep a divided government i think, again, to generalize, ceos like a divided government after all, they have all succeeded tremendously pretty much with the status quo they do not want to see revolutionary change they dont want to see some of the more extreme populist impulses of trump unleashed. They dont want to see, god forbid from their point of view a socialist president with a Democratic House and senate. You may actually make it possible for some of these things like the wealth tax to happen you can using that lens we will see a lot of shifting and moving around as the contours of the race become more clear market watch says not one s p 500 ceo is donating to Bernie Sanders. Not surprising, to your point. I just wonder if it is going to help Bernie Sanders to say Something Like that. You know, everybody else is backed by these big corporations who have all sorts of interests and theyre going to manipulate their candidates im sure Bernie Sanders would say bring it on. Yes. Hes been using it against buttigieg in particular saying oh, may god he has a billionaire donor or two and yeah that hard core sanders people who are very comfortable with the socialist label, yeah. They are going to rally. Thats why some of them are so passionate again, i think the issue for the big election is who do you get in the center and ceos generally speaking tell republicans if they in my experience they are centrist by and large because as i said they have succeeded in the environment we live in. Theyre not looking for revolutionary change they want predictability yes, they love the trump tax cuts but they dont like the trump tariffs. They do see things through the lens of how it affects their corporations and a wealth tax, higher corporate taxes, nationalizing this is like poison from their point of view. So do you think they would prefer a republican executive and a Democratic Senate or vice versa or what combination of executive and congressional do you think . I think they are quite comfortable right now with a republican president and at least one house thats democratic that has been a pretty effective check on him i think theyd also be very comfortable with a centrist democrat i mean who is not they dont like the populist impulses they dont like the tariffs. They you know, they would like to see someone i dont think they really have problems with some of the middle of the road democrats and then they would like to see a Republican Senate to check any impulses to raise taxes too much right even bloomberg proposes significant tax increases. I think hes got that. Thats not going to happen in a senate controlled by the republicans. You say theyre happy, that the congress or the house has been able to hold back the president , really, though . You think so i mean, state department, regulatory agencies, the fed, i mean, i can think of all the places that this administration or at least this executive has pushed harder perhaps than some predecessors obviously the chaef executive has tremendous prerogatives and trump has been taking a very expansive view of the powers of the presidency not that he is the first but, nonetheless, from a legislative point of view, some of the really revolutionary proposals would take legislative action if say sanders was in the white house and thats just not going to happen. I think there is maybe a risk, though, that if sanders is a nominee there will be a huge outpouring in money into those Republican Senate and house races and less to the democrats. And then you could see, if trump wins, and then you could see back a Republican House again, thats not really what they want they dont want to see an unfettered trump with a compliant by the way, you know, the republicans blocked him on obama care in the first term but hes been kind of systematically getting rid of the antitrump, you know, members of the party also a lot has been dismantled a lot he has been molding the party in his image and it is going to be theyre going to be different republicans if somehow the republicans retake control of the house my guess would be it is going to be a much more pro Trump Legislature than it was last time. It will be interesting to see who lines up behind trump this time versus last time. I mean, it was peter thiel and now a report Larry Ellison is also Backing Trump and there is a fundraiser this weekend in palm beach worth 586,000 per seat expect a lot of business members there. I think nelson peltz is hosting that at his home according to the Washington Post. Now that he has done the tax reform and its been largely a good presidency for business and the markets and the economy, whether he is able to line up more support than last time if Bernie Sanders starts solidifying his lead and looks like hell get the nomination i predict well see a lot more of that, a lot more ceos publicly willing to align themselves with trump against sanders. Does the market freak out or do they think oh, he is easily beatable and shrug it off . I dont know for sure but ive been hearing a lot of people say the reason the market went up on tuesday is because bernie won that primary and a lot of investors feel if sanders is the nominee then trump is going to win thats good for the market some of that sentiment is definitely out there without a doubt still early. Right and fascinating. Thank you sure. As we go to break a look at the best performing names today on the dow unh leads along with nike and cat. Squawk on the street back in a moment Johnson Johnson is a baby company. But were 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 youre born we never stop taking care of you. It is time now for our etf spotlight. Today taking a look at the chip stocks our josh lipton is out west and has a look at some of the names in the group surging in todays trade. Good morning, josh reporter heading into this report nvidia remember had already rallied more than 100 since the june, 2019 lows. This morning its headed still higher surging after surpassing the streets expectations, beating on the top and the bottom importantly, the company also reported Data Center Segment revenue of 968 million. That was a jump of 43 , much stronger than expected investors focused on that segment because Data Center Chips carry higher margins gaming sales, meanwhile, climbing 56 to 1. 49 billion as for the Outlook Revenue will be 3 billion plus or minus 2 in the fiscal First Quarter that includes a 100 million impact from the coronavirus. That forecast beating the streets estimates as well. This report coming as investors have piled into the chips, the smh, etf that tracks the semis just hit a new intraday all time high this morning. Now its still on track for the best week since june, 2019 it has rallied nearly 50 in the past 12 months susquehanna says there is increasing promise in increasing fundamentals he means big Cloud Companies spending more on chips this year that Chip Companies will also benefit from new video game consoles on the way and of course the rollout of 5g guys, back to you. Thanks for that our josh lipton. Lets get a news update this morning from sue herera at hq. Good morning, sue. Good morning, everybody heres whats happening at this hour prosecutors will begin their closing arguments today following yesterdays closing presentation by Harvey Weinsteins defense team, which claimed that weinstein was the victim prosecutors want to focus the jurys attention on the accusers who testified against him. Weinstein has denied all charges. Prime minister Boris Johnson holding his first Cabinet Meeting the day after a major reshuffle. He told ministers to put their peddle to the metal to deliver on the governments promises a top olympic official has made it clear the 2020 games in tokyo will not be canceled despite the coronavirus that has spread from china. The measures being taken by the relevant authorities are properly addressing the situation along with china and that well be able to ensure obviously the accolades go the games go ahead and that they go ahead in a way thats safe. You are up to date. Thats the news update this hour david, back downtown to you. Thank you, sue. After the break, finding a cure for the coronavirus, were going to talk to the ceo of one company partnering with the uk government on finding a vaccine. Thats next when squawk on the street returns. danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. With the growing number of coronavirus cases and deaths companies scrambling to find a vaccine. Well go back to headquarters for an update on some of those latest efforts meg . Hi, david the disease now known as covid19 is moving so quickly Public Health experts say the best first line defense is going to be detection and containment. Companies and researchers are working quickly to advance vaccines so one might be ready if the outbreak continues beyond this year. Now, here in the u. S. The nih is working with Biotech Company moderna on a vaccine said that could be ready in two and a half months to Start Testing on humans if all goes well. That is incredibly safe but it still needs to go through safety and etfficacy trials there are questions about how to manufacture it on a larger scale. Large pharmaceutical companies are also in the race Johnson Johnson said it had started working on a Coronavirus Vaccine in mid january and now also has the support of the u. S. Government through barta it puts the time lines to have a candidate ready for human testing at closer to about a year additionally the nonprofit sepi is supporting multiple programs, the university of queensland, moderna, gaks cosmith klein and others it could be months before we see human testing but companies are moving so fast thank you very much well dive right into that question and bring in the ceo of cu curevac, one of the few Companies Working on a vaccine as meg just mentioned. Welcome and thanks for joining us thanks for having me. Glad to be here. So where are you in this process of developing a vaccine for coronavirus . Weve moved very, very quickly at curevac to make a vaccine for the coronavirus. It is exciting times as you may know our technology is very, very fast we utilize messenger r a which means we are actually going to encode the virus or the contagious part of the virus on messenger r a and then inject it into the body and actually are able to then create a vaccine for people so very exciting times we are in early days but moving quickly what does that mean how much longer before this becomes something people can use . We expect it will be in phase one Clinical Trials probably early summer time, so i think were moving quickly we got the sequence back just in early january or mid january when it was first released we have actually gone ahead and sequenced the virus and, or the vaccine and put together a nice construct, several con strukts, and were driving them forward in some early testing, as i say, most likely early summer to be in the clinic. It sounds very fast how is it different from some of the other vaccines and the works meg just laid out, the moderna one, the j j one, is this all going to happen at the same time hard to say i dont know some of the other technologies that for instance j j is using we use messenger r a so does moderna. Our technologies are not exactly the same but i think there is a strong view messenger r a will be one of the vaccine technologies to most likely be the winner here in terms of getting something into the clinic very, very quickly. When i say the winner, what i mean here is the opportunity to protect people from the coronavirus. I think that is really the key piece here in terms of the race to beat this particular strain, the cdc director did give an interview to cnn where he said the virus, quote, is probably with us beyond this season beyond this year youd go along with that id go along with that and i think thats why we want to work so closely with sepi as meg mentioned. We have an 8 million grant from them to work on this vaccine we also are in a position where we have production so once we get the vaccine into phase one, we can work with the Health Authorities, the regulatory agencies we can manufacture it. And then it is a question simply of how do we work with the regulatory authorities to bring this vaccine forward as quickly as possible . So, dan, we get flu shots and, yet, often still get the flu because of different strains. Would it be Something Like that . Really interesting question thanks you know, with flu you make the vaccine in eggs and it takes a very long time and as you know the flu strain can mutate so it is not necessarily a hundred percent that weve gotten the exact mutation that we need here hence while you might get the flu shot and, you know, you still may get the flu. With messenger r a what is really interesting is we can exactly mimic the antigen and so we believe because messenger r a acts as a data carrier to tell your body exactly what to manufacture in terms of the protein, we are then actually activating your immune system, your tcells, your cells creating antibodies so the probability we make a vaccine that is very, very close to the antigen and is protective and highly protective is very, very strong ffrjts y if you were as so many hope able to get to the point where you had a vaccine you think proved effective would you have the capacity to actually manufacture it in the amounts that might be required so, great question. You know, right now we dont know what the size of the dose is going to be for instance, our rabies vaccine we just finished phase one is one micro gram should we be so fortunate to have such a low dose, then i think we would be in a position to manufacture millions and millions of doses. If its a much higher dose, then, you know, were going to be in a situation where we can manufacture fewer but perhaps we could partner with, you know, a Large Company or Something Like that to work on and expand our manufacturing to where we could supply a significant portion of the market the change in the methodology in china this week had some complaining that drug testing gets a lot of love, a lot of money, but diagnostics do not. I wonder how youre feeling right now about our ability to even diagnose. Yeah, not so close to the diagnosing piece it would be hard for me to really comment on that the piece that we are the closest to is the vaccine. Knowing how to make a vaccine, how to make it at a low dose to make it effective and to move very quickly with our technology and as i say the fact that we have the manufacturing that we can manufacture and get this into phase one quickly. If we can show some success in phase one, then i think we can work very closely with the regulatory authorities to see how quickly can we bring this to market so that we can start protecting people. Dan, is there anything else youve learned in the development of the vaccine about the virus, itself, just how contagious it is, how it spread beyond what weve were hearing from authorities you know, we havent learned much more. I think the authorities have done a nice job of telling talking to us about how it spreads and, you know, how quickly they believe it will spread you know, at curevac we had worked on the sars vaccine at one point. We are very familiar with the coronavirus. Right now what we will be making is what we call a mono virus, something specific to this coronavirus. But because our technology is unique and we can actually make cocktails of antigens we could make a vaccine with what we would call multi having multi different antigens in there we could potentially down the road after we get this vaccine made for coronavirus make something that would be protected for the wuhan virus, maybe also mers and sars so we were really hoping that this is the start of an opportunity to be very protective around the coronavirus for people Going Forward for, you know, many years to come. We wish you the best of luck. Keep us posted from curevac we will do it thank you so much. We continue to watch the progress of dr. Judy sheltons nomination before senate banking. We have an update now. Reporter there was some skeptical questioning of judy shelton from republican senators up on capitol hill in her nomination hearing so the question is where does the white house stand now in the wake of that skepticism . In talking to some officials here over the course of the day today what im told is that the white house is still confident, quoteunquote, that shelton can get through despite some skepticism on capitol hill i talked to a Senior Administration official this morning who said that theyre confident that the shelton nomination will ultimately get through. The president im told has not been making calls yet on capitol hill on this there is some expectation that judy shelton may have additional meetings with senators to clear up some of the discrepancies overall, though, officials saying the white house thought shelton did well in the hearing and the differences she has with senators up on the hill are, quote, very small. Separate separately, i talked to another Senior Administration official and asked whether this is a case of the white house standing by its nominee until it simply cant anymore. The second official saying weve seen that move before from this white house. So there is a little bit of skepticism here inside the white house where this all goes and our reporter has been talking to some officials who also expressed there might be a conflict inside the white house over exactly how far to push the shelton administration as of now the official line is they are still confident she gets through and confident ultimately that theyll have the votes up on capitol hill back over to you she can only afford one, right . Republican senator reporter thats right. They have a one vote majority on the committee. If she loses two republican senators that is a significant problem. That gives all those republicans some real power in the committee. I think its interesting that, you know, republicans lately have gotten a lot of heat for backing the president no matter what but they have blocked him on fed nominees interestingly enough this is what, the fifth one that the administration is trying to get through. Four others had to back out because of resistance from republicans. Already weve heard senator shelby and toomey say theyre indecisive when it comes to shelton publicly right those are the two to watch up on the hill because those are the ones who expressed the most skepticism on issues like devaluing the dollar, the gold standard, and other things the white house feels, for now, that those differences are small. And that they can explain them to the senators and ultimately persuade those people. I think if the president starts to make those calls directly to those senators andreally puts the arm on them directly, that might change the calculus all together and im told that hasnt happened yet all right thats going to be one to watch. Outside the white house today. As we go to break take a look at pod stocks today on the rise canopy with a smaller than expected loss. Revenue was ahead. Strong quarter helps boost some of the other names in the space as well. We know what aurora and some of the other names have been through. Dow is down three points yes im stuck in the middle with you, no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its the most open and secure public cloud for business. It can manage all your apps and data from anywhere. So it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. Without getting in your way. One top strategist calls this industrial stock the unloved step child of the sector find out which on trading nation. Cnbc. Com. More squawk on the street coming up. T. Rowe price admitting it made a big mistake with an investment we have the details. Reporter good morning, sara. T. Rowe calling wework a terrible investment that has, quote, caused us outside headaches and disappointments. The rare public admonishment came in its mid Cap Growth Fund annual report to investors last night. T. Rowe said weworks management took their advice to moderate growth for a little while until, quote, new investors arrived to convince management to put its foot back on the accelerator of course that new investor was soft banks vision fund pouring billions in and bidding up the valuation to 47 billion we all know what happened next botched ipo out of newman out and falling to just a fraction of that about 5 billion but t. Rowe is not alone its not just weworks. Several other big mutual funds including fidelity, jackson national, and vanguard also put money into wework and had been marking up its valuation along with the riled ride it went on with soft bank and it has led to big, embarrassing markdowns for them as well talking about other writedowns juul is another one where Institutional Investors got burned according to pitch book, fidelity and American Funds had to mark down their holdings by nearly half last year after juuls valuation was slashed in its filing t. Rowe concludes that the wework debacle as it calls it was an error in judgment not in process. But, guys, there could be other disappointments for t. Rowe and other mutual funds big holders of other money losing Companies Like uber and lyft and getting deeper into the Venture Capital world and into earlier rounds. Back to you. Always worth mentioning it wasnt that many years ago when the idea of fidelity being a big holder of a nonpublic company was something people would not have anticipated t. Rowe was early in doing it of course, moving in, but, i mean, these guys have all become such big players in terms of providing this Growth Capital so to speak for private companies reporter absolutely. Here in the valley they used to be known as, quote, tourist investors, but no one calls them that anymore because it looks as though they are here to stay not just the mutual funds but the hedge funds like tiger global that are leading some of these big rounds and getting into some of the smaller startups as well. That t. Rowe letter is worth reading. Unbelievable thank you. Nice to have you back. Lets get to the cme group and check in with Rick Santelli for the santelli exchange. Reporter good morning. Thank you, carl. Id like to welcome my last guest of the week. Thanks for joining me. Lets get right into it. We obviously know the coronavirus is an issue affecting flight to safety so yields on many instruments have been going down. We see record inflows up to feb 12, 23 billion plus in change to bonds. Is it all coronavirus . We seem to have had the same scenario in 2019, tens closed down 26 basis noints 2019. No it is not just corona. Corona is one of a the host of factors influencing it you dont have to go much further than the auto strike and the boeing swaying the very flat yield curve environment telling you Monetary Policy is too tight. On top of that youre getting signals that Monetary Policy is too tight from the Exchange Value of the dollar which is continuing to creep higher not only against the euro but also not going down against the yen and is holding itself against the chinese yuan steve, im not going to get into a debate with you on fed policy with regard to whether they should ease more. Lets focus on the notion that if it isnt coronavirus, many expect that after this passes rates should pop up. They didnt pop up after the uncertainty of trade though there was a small window of how china had to dea coronavirus. There would be a small popup you could get back to 1. 75 on the tenyear note. At that particular level, theres so Much Negative yielding bonds out there in the world. You can have a continued flow of 14 trillion again, i believe. 14 trillion again isnt that the number . Thats correct. That will be the factor. The yield thats going on globally and will continue any backup towards that 1. 75 will be met by additional overseas buying. Therefore the curve will stay very flat and this is the problem that policymakers are facing one minute left i would debate you on whether the fed needed to lower rates or not, but look at it from another angle. Look at whats going on with regard to growth if we look to europe, weve seen that their economy, their numbers for gdp came out today, their quarter oever quarter was the worst since december of 2013 excuse me. March. And their year over year since 2013 theyve done everything, eased more, bought more, pretty much thrown the kitchen sink and yet their economy isnt responding your thoughts on that. Well, i dont think europe can because europes big problem is it hasnt corrected its banks. This is the same position japan was in back in 1990 and thats why the japanese economy is stuck in deflation and europe is following the same thing if you dont correct your banking situation, you cant get out of the malaysia ring, and theres why europe is off. China is basically adding up to 38 of gdp between japan, europe, and china that are at or leaning towards deflationary tendencies that was interesting. Thank you, steve david faber, back to you thank you, rick Rick Santelli. Over to jon fortt for a look at what is coming up on squawk alley. How about roku . When the opening bell sounded, it proceeded to be up above 150 bucks a share. Now its settled down to around 141, but thats still up around 2 ceo anthony odwo will join us after earnings to tell us whats coming up next and tie it all together with a worldclass software experience. We ended up creating, as you all know, so much more. Peloton is truly a category of one and were just getting started. Now, lets do this. Together, we are going further than we ever thought possible. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com when it comes to your business internet, which is more important . Okay, i wish i didnt 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. Thats what we want thats 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. President s day weekend marks the unofficial start to the spring housing market. If youve decided to stay where you are and remodel, youll want to know what gives you the best bang for your buck diane olick has the answers. Ill start with the bad news. This year overall were getting a little less on return of our return investment. 63. 7 cost to value ratio, down below the last year. Thats because the cost to do the project is actually rising, mostly labor and material costs. Now, drum roll, with particular project deals the best return in resale value exterior improvements that is 9 out of the top 10 leading investments outside. Manufactured stone veneer comes in at number one with a nearly 96 return on investment a garage door will pay you back 94. 5 , a midlevel Kitchen Remodel rounded out the top three but with a 78 return, and bathrooms didnt even make the top ten. You do better with window replacement, new deck, new front door, it is all about the curb appeal while a lot of us may think its all the kitchen and bath, heres the problem. You may put in a gorgeous new kitchen, someone else walks in, that i dont like it thats the problem david . I thought it was bathrooms. Thats interesting. Thats helpful diana, thank you not bathrooms, sara. If you make your bathroom nice, its a better sell but it may not appeal to the next buyer and their tastes. Garage doors. What is coming up on bell bell galaxy digitals founder and ceo joins us hes built this new firm around bitcoin. Super bullish. Well see what he thinks about price action and a lot more. Interesting all right, guys. See you later. After the break, an exclusive with rokus anthony wood, that stock up better than 2 . Turn on my tv and boom, its got all my favorite shows right there. 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, its got screeners and watchlists. And you can even see how your predictions might affect the value of the stocks youre interested in. Now this is what im talking about. Yeah, itll free up more time for your. Uh, true crime shows . British baking competitions. Hm. Didnt peg you for a crumpet guy. Focus on what matters to you with thinkorswim. good morning it is 8 00 a. M. At roku headquarters in california, 11 00 a. M. On wall street. Squawk alley is live im just a love machine