Risk to growth, goldman warning this morning that a further spreading of the virus or widespreading of it could completely wipe out corporate growth this year. On the sidelines why Toll Brothers ceo tells jim the next few weeks are critical for the Housing Market so the number to watch is going to be 361 today. If the dow falls by that amountiamount the blue chips will hit correction territory last night at the president s News Conference about containing the virus, eamon javers asked if Financial Markets are overreacting heres how the president responded. I think the Financial Markets are very upset when they look at the democrat candidates standing on that stage making fools out of themselves and they say if we ever have a president like this. Did it have to do with the coronavirus . I think it did, i think it did. But i think you can add quite a bit of selloff to what theyre seeing. How much of that explains today, jim i think that the most overshadowing thing is what happened right in the last few minutes of the press conference, which is the california discovery of someone who was in a local hospital they didnt know it was corona, then went to the davis hospital, a very good hospital where they felt that it wasnt corona and then they started treating it as corona so we have to wonder, it would seem that every Single Person that person came in contact with is going to come down with this. Its certainly not the president s fault. I hear people say if the fed were to cut rates. These are parallel universes this is really about getting sick i cant offer the odds that youre going to get sick you go to Harvard Public Health site and they say 60 chance i do think the goldman piece is valuable, which says no Earnings Growth and obviously were not priced for that. I do think microsoft is worth watching because we got a warning there and we talked about microsoft being down a lot ahead. It didnt stop and that immediately spilled over to apple. We would have thought that has discounted it so the companies that were doing very well have not discounted the decline and just in terms of the personal view that i have, i remember i know that people are too young on twitter, but when we had measles and chickenpox, to really default to the personal, my mother and father said youre going to get it and its going to be bad and then youll live, youll go on some people wouldnt make it but this is measles and probably going to get it. You never thought that you wouldnt get it. This is before the vaccine it wasnt whooping cough, but it was measles and chicken bpox an we just said, okay, lets get through it people will say, no, jim, the death rate is blah, blah, blah but im talking about the inevitability of getting it. Seems likely. Well, supply chains certainly and the Global Economys slowdown certainly seems to be reflecting fear of getting it. Exactly not reflecting nearly as much here as around the world europe, anecdotal, so much is anecdotal in terms of what people are seeing on the roads in various countries in terms of the typical traffic versus whats going on. Economic activity has slowed. Supply chain continues to be an issue, in china as well the number of cases has slowed dramatically. Right. But it is still a big issue in terms of people getting things on time. So you have to readjust downward im not by any means saying its the end of the world this is not zombie nation. Im saying we were priced ten days ago for things going up pretty good. So now we cant just price for things going up not as well, we have to price for things not going up in terms of Economic Activity again, im going to reiterate, hate him or like him, its not the president s fault. We had dr. Fauci up there yesterday. What did he say . When this started he said you know what, were probably going to get it. People ignored him he said were going to get it. So whats he going to do, get up and say were going to get it again . For our purposes, its about the impact on business. Right thats really what i want to emphasize. We dont know anything. What do you think of the goldman piece here, because theyre making some assumptions. One that is bond yields go to 1, s p 2900, and then they do add a line here, jim, its striking to see. Assuming a recessionary scenario, s p earnings fall 13 to 148. Right i thought the goldman piece was very sober and very intelligent. I think that the last part that you said is the one where people will say Bernie Sanders is going to get the nomination, youll see claims rise and theres a better chance he wins than not and if thats the case well have another leg down. Now, i dont think thats that revelatory you just said blaming the president is a parallel you know sglers universe. No, if we get a recession. But that raises that if Bernie Sanders is the nominee wins. But do you think this reflects fears of a democratic president . Were getting there, absolutely. Speaking to market participants, so to speak, there is definitely we cant completely excise the impact of a sanders nomination on the market. Thats how i feel. It is not the overriding reason of course not. Back of mind. But there is something there. Even a few weeks ago it was not being really reflected in market prices, the idea that he would be the nominee now its starting to be. Do you think its involving claims if in fact he is the nominee, the Democratic Party is a 79yearold socialist, its unlikely hes going to win. Still unlikely. You have to start to take into account the possibility of that. I remember, david, you were talking about how its too close, we shouldnt think. I think now its in the thick of it and we have to think. Yes its happening. Right. At the same time, though, that we have this potential global pandemic. Right to distinguish between hate him or like him, what is the president supposed to say. Some people said really hes being complacent again, i want to bring up the measles. Listen, youre going to get the measles, okay . What is he supposed to say, youre not going to get it he has no ability. But i think as a leader he doesnt want to say get to that supermarket right now like i did when i heard the initial cdc i told my wife i want two months, i want all the drugs that we have, i need a two months supply i bought three of the 3m masks immediately. I did all this within an hour of the first cdc comment which basically said, listen hug the kids. Its the cdc suggested it. I talked to my kids a little bit. I did that immediately. I cancelled my daughters trip to italy. Thats it thats all ive done. Did you not listen to that woman on cdc who told you basically said listen, do what you can. She didnt say every man or woman for herself, thats the one thing she didnt say which im grateful for the president had to play defense because of that woman. I do got to ask you, though, really strong work by the times here graphically which puts us on the front of the business section and sort of puts in perspective 10year gains in the market. The handwriting is there, its not ours youre investing for this many years and this is a few days how much of that is relevant in todays conversation well, i think that if you theres two parts to this. I genuinely believe were going to solve it. If you genuinely believe were going to solve it, you dont know when its going to stop going down its going to keep going down. What i didnt like about that is the idea whats the next thing after the red . If gilead remember, theyre giving gilead because theyre really trying to whatever sticks, okay someone last night on our special said it doesnt matter if you get care. Thats completely wrong. If you get care, that chart is going to say why didnt i buy. There has to be some reality just to stay the course. Thats not stay the course, thats a sell. Thats a get out and i dont buy that. Even goldman is cutting industrials, cutting banks are they upping real estate and upping utilities i think theyre underweighting in terms of buying the proctor things. I thought that was i thought that was a mistake those are interesting. The reason why those are interesting because i do think that decrease in world commerce is what we have to focus on and there is going to be a decrease in world commerce. Watch marriott thats a world commerce play the stock coming down well in anticipation of a slowdown anything travel related is getting crushed. But david, it was at 120. We read that statement if its at 110, then the negative is here if it stays at 120 is what i was going to say, which it was i was wrong. Yesterday, expedia, ual, any of the airlines, uber they were all going down. The percentage of rides originate at an airport. All these things are nestle cutting International Travel thats 300,000 employees. And thats happening across the board. At the same time, anything where you stay at home, as we know, has been doingwell peloton had a good day yesterday. I do have i have eight stocks youve got a stayathome portfolio. Ive got a solid eight works. Is there a new acronym in the works . Wow sickness call it shelter give me shelter. And haonesthonestly, the measles more people die of this than the measles. But all i want to talk about is growth rate coming down. I cannot offer anything like dr. Fauci. But i did feel some of the people on the special last night were so in contrast to dr. Fauci it made me uncomfortable who doesnt wanting the gilead drug to work who says thats not significant . If you get pneumonia, you want something that makes you so you dont have a respirator. We have people saying stuff like night, i was like wow, come on, get with the program. Youre right about the global headline flow continues. Eunice yoon yesterday tweeted some concerns about people who had recovered and then tested positive again eunice joins us in beijing from all the latest hi, eunice hey, guys well, with the jump in cases overseas, the concern here now is about a reintroduction of infections to places in china that have been recovering. In fact china announced its first case of this such case today. A region said there was a traveler who came in who was sick from iran and so the authorities here are stepping up their efforts to try to screen and pose restrictions on a lot of travelers coming in from overseas, especially from badly affected countries, even though china had criticized other countries for making similar moves. Now, all of this of course creating still a lot of uncertainty among businesses the American Chamber of commerce and the European Chamber of commerce both put out surveys. One said 48 of those polled see a drop in china revenue for this year if business stays abnormal until april 30th the European Chamber said 48 of its members see a decline in revenue for 28 or more for the first half of 2020 the central bank today attempted to reassure businesses that it was going to take serious action to make sure, they said, it would reduce the impact of the epidemic as far as possible to ensure that china achieves its economic goals for the year. That, though, has been raising questions as to just how much beijing will be able to adhere to its target approach when it comes to stimulus with unemployment and the possibility of bankruptcies now very much on the leaders minds one of the top epidemiologists of china put out a projection of when the epidemic would end. He said it could be contained by the end of april authorities here have also been taking very unconventional methods in order to try to get more people to come forward so they could detect more of the coronavirus patients so one of the cities in Hubei Province has now said they will offer 1,400, which is a windfall for people in this smaller city 1,400 for anybody who comes forward with their symptoms just in order to put some pressure and make sure that people come forward, they have set a deadline to next monday. Guys eunice, you know, in this country now were sort of trying to imagine what it would what it will be like when and if seems likely the virus is here in a significant way what can you tell us in terms of your daily life in beijing given youre not obviously near the epicenter but at the same time obviously it is everywhere weve seen you out in the streets with your mask on. What can we expect here . Well, i can tell you a little bit about my day today so i came to the office twice and every single time now the cars that ive been in are all wrapped in plastic and say that theyre disinfected. Everybody that i see is wearing masks. I needed to buy some disinfectant to make sure id for the weekend because thats what ive been doing every single weekend is disinfecting my house because there isnt anybody else to do it. So ive got to make sure that hygiene is really important. Also i received a package today from a company that was worried about me, i guess, and gave me some gloves. Actually these types of latex gloves are really difficult to find these days. So thats kind of been my day. And then the other thing, though, that is quite worrisome is that beijing actually had a jump in newly in new confirmed cases. And so the person who the people who got sick were all associated with one cleaner who went to the office with a fever. What you see is that theres this pressure for people to go back to work they might be sick, but also they havent made money. A lot of people have not been paid for several weeks because they arent all salary people. And then theres a certain randomness to it all, which adds pressure when you go to the office or when youre Walking Around because you just feel like you just dont know whether or not youre going to be okay playing the numbers game thats a human dynamic that is going to be international in scope and certainly points to the concerns people have about demand jim, i mean its going to get harder to buy an iphone at the margin. Yeah. I thought it was very interesting last night when enrique laurel said theyre probably going to have an 8cent trim why . Because they have a lot of demand for some of the really nice, new pcs, not printers, we go into that, and they cant meet the demand because they cant get the parts. He said the factories are up and running but theres just not a lot of people, enough people at the factories. I think thats kind of a good example. 8cent hit and betting that things get back to normal because as eunice said, theyre telling the Chinese Workers to get back yeah. Well, if it ends the end of april, as eunice said the authorities are hoping or some of the top epidemiologists in the country are, but right now nobody is consuming much of anything in china. Well i mean other than disinfectant and masks and gloves if they can find them. Yeah. Look, im nsaying can you stay the course i dont know how youll solve it i think youre going to get hit. Some airlines, travel, no, dont stay the course. I dont want to stay the course in those. Our thanks to eunice. Well get cramers mad dash and count down to the opening bell another look at the premarket. The dow is down 361. We will be down 10 from the highs. Oh, hi, samantha. You look more like a heather. Do you ever get that . Its nice to finally meet you in person. Youre pete nocchio . Oh, the pic . That was actually a professional headshot. Im sure thats it, yeah. I, uh, i think ive lost a few pounds recently too. Im actually doing a juice cleanse. Wait you dont. glass breaking gasp ah oh. with geico, the savings keep on going. Just like this sequel. 15 minutes could save you 15 or more on car insurance. Wewithout the planet cooler getting warmer. At emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. All right, were ten minutes away from the opening bell lets get in a mad dash and talk a bit about square. Yes now square is a Payment Processing company its doing exceptionally well. They crushed the earnings last night. One of my favorite analysts, shes just really, really good, lisa ellis, she actually puts out a piece saying not only is it good but its going to be sought after there are Many Companies that would like to buy it i have mastercard on the other night and theyre an inquisitive company. I dont think they need to buy square, but a lot of the travel im sorry, these companies that are payments, they would love a square a lot of people feel maybe jack dorsey who spends most of the time in africa, its run largely by the cfo, might want to do something. So this is a piece that says there could be a transaction even without it, you still make money. I like that optionality. Could win two ways. And dorsey being absent from and or also having his other job with twitter. Stays in touch telephonically david, i want to ask you, do you think a major politician or major ceo gets it and we have to then have another leg down i dont know. That certainly is possible if it spreads widely as we expect that it eventually will. Right just something to think about. We have a market so focused on every single headline and some of them are misleading and the algorithms dont read story, they read headlines. But as Interest Rates go down, stocks go down. Yeah. Lets talk a bit about rates when we come back. Weve got an opening bell as well but that 10year, we havent seen it this low ever. Ever. Ever. A lot more squawk on the street coming right at you. Dont just plan to retire. Plan to live. An annuity helps cover your essential monthly expenses, so youre free to live the life you want. Find out how an annuity can give you Lifetime Income at protectedincome. Org every time it takes care of something for us, we celebrate. How often does that. Got it. Servicenow the smarter way to workflow. Youre watching cnbc squawk on the street live from the financial capitol of the world the opening bell in five minutes on another important trading session as analysts start catching up to the corporate warnings weve been hearing as the buzz continues over last nights president ial News Conference about the coronavirus. Heres a look at how dow futures have moved the past 12 hours we got a bit of a dip its been one of those, again, volatile sessions much like the cash session was yesterday, jim. Right this is when i think you have to start thinking about, all right, what companies have good cash flow thats consistent, that have good dividends and leg into them dont look at this as the s p. I know that weve all been taught that you should