The market selloff continues and so does the search for a safe haven, the spreading virus is the main factor, dow industrials down 400 points at the opening bell, this is shaping up to be the worst week for the dow since the financial crisis of 2008. S p down 50, one. 5 or more and the nasdaq down 2 at the opening bell. The president has offered reassurance about the virus, quote, the risk to the American People remains very low. We are ready to do whatever we have to as the disease spreads. Now comes news of an unexplained case of the coronavirus in california. The patient did not travel to a virus hotspot and was not in contact with a known virus carrier. In other words it is here. Oversees dramatic action in japan. They closed all the schools until april. In italy, 528 cases at least, 12 that. Iran finally doing something. Having refused to quarantine towns or cities they suggested less unnecessary travel. Listen to what the president said about the Market Reaction. I think the stock market is something i know a lot about. It took a hit for two reasons. Look at the people you watched the baiting last night, theres a possibility that could happen. I think it takes a hit because of that. It took a hit because of this and i understand that also because of supply chains and people coming in but i think the stock market will recover. The economy is very strong. Stuart lets bring in the market watcher, the virus is here, unexplained case in california. Do you think we are looking in the near future towards people not mixing in crowds so much, not going out so much, not self quarantineing butler social contact . Because that would slow the economy. Let me give you an example of Central Florida. I decided to go to walgreens yesterday and asked the question how is the mask business and the person told me all the masks in Central Florida have been sold out. Every time they bring in more masks more get sold out very quickly. That tells me people are very worried. Is a possibly, not 100 certainty, that these people that are worried may not go to the movies, may not go to the restaurant, may put off travel and if you notice what the worst spot in the markets are right now, the restaurants, travel related and anything you go to outside your house. The strongest spots in the market, you exercise in your home, netflix, you watch in your home and teleconferencing stocks. The market believes it right now and if it comes to fruition that would not be a great thing. Stuart in other words you cant say we are near the bottom at this point. Know. The only good news i can give you on the market, we are down 3000 points already and one has got to think a given point when the market says enough. When you have a microsoft number on top of mastercard, on top of apple, that is worrisome. What i need to see is microsoft come out with lower numbers but not go down in price. Last i looked it was 7, if they can rally that up today that could tell me in the short run, the big institutions are starting to defend the market a little bit but we have not seen it yet. Stuart a lot more from you please. Gordon chang, you wrote the book the coming collapse of china. Do you think it is relevant . Is china about to collapse . I think so. I think china is in mortal danger, the Chinese People are whitehot, demanding a new form of government and xi jinping, the chinese ruler, knows he is in trouble because he has imposed extraordinary controls on information and most worrying at all he is starting to lay the groundwork for blaming the United States for the spread of coronavirus. Stuart what is he saying about the United States . In the beginning of this month the communist party and Foreign Ministry blamed the us for the spread of h1 and one and said the us was a imposing astronomy controls on china. A few hours ago the hero of the sars epidemic said that the coronavirus, the first diagnosed case was in china did not come from china, that links up with what they were doing in the beginning of the month criticizing the United States. I am afraid desperate chinese leaders will lash out at us and do something that will take us by surprise. Stuart this is a strong word, the collapse of china would be very bad news for the United States and the Global Economy, wouldnt it . It certainly would because people would panic. It would benefit a number of countries including the us but people are not expecting this and when they dont expect something you have the Market Reaction we expected recently. It would be worse because it would be a bigger event, you are going to see people taken by surprise. Stuart we are nowhere near through this problem, not close to the bottom. Is that accurate in china . I think that is accurate. Because of the suppression of information we are getting numbers of new infections from beijing that dont correlate with what we are seeing but they correlate with xi jinpings notion of trying to get people back to their job sites and that will spread the virus further. China has a long way to go before they see the end of coronavirus. Stuart thanks for taking time to be with us. Lets update various aspects of this story. Gilead is in late stage testing. Ashley it was brought out to treat a bowl a bit in studies it can be effective against coronavirus. They are going to test human tests mainly in china and asia. They will be put on 10 day dosing regimes and will monitor patients after that. This was lightning fast, such a long drawn out process. They are on a fast fast track to get to the final end stage. Stuart it is a treatment, not a vaccine. Stuart has the World Health Organization had any new headlines . Ashley they said we are at a Decisive Point when it comes to corona virus, capable of the things we have already seen in iran, italy and the republic of korea. They say it is not influenza and with the right measures it can be contained. The World Health Organizations is no country should assume it wont get cases. It would be a fatal mistake. Stuart back to our market watcher, if you are a longterm investor, somebody in their 30s 40s or 50s and have some cash what is wrong with looking at this market picking up prime Quality Companies that are beatendown, anything wrong with that . If you believe in the progress of this great country you can but that doesnt mean you go lower also. I dont argue the point. We do know the Great Companies out there, timing is the big issue. We have an outlier event after a 50 rally, 38 rally in the dow in 13 months. We could go lower but i cant argue the point to pick up a few things, i have no complaints about that. Stuart one of my produces that im shifting my 401 k into the Aggressive Growth fund. I think that is a pretty good idea and you would agree with that. I have no complaint after this drop to do a little of that. I wouldnt do the home off the ball but throughout history, the first day the market opened if you bought every pull back even in the middle of pull back you brought a ton of money in the long term, history speak loud and clear on that. I cannot argue what you are saying. Stuart the virus is affecting drug ingredients. There are 370 drugs where the raw ingredients come, they themselves cant get the Raw Materials or get them out of the country. Stuart these are drugs that have nothing to do with the virus. 90 of those ingredients come for tuberculosis, i medication and std medication from china. Stuart how do you get to that point . Thats what the administration is saying. We saw this with the toy industry, the supply chains are moving but it takes a few years. Stuart they will move. If you cant produce basic drugs that will change. We are putting various stocks on screen, chipmakers, a leading indicator, computer demand is important, they are down for another day, day after day they have been going down. Ali baba we call the amazon of china, down another 3 bucks, jd. Com down 122, down again. Mcdonalds down, 207, down 250. Yum brands active in china down one. 74 . Coronavirus impacts, starbucks down to dollars, disney down again, 120 on disney, lots of exposure on china and disney was nearly 150, now it is 120. Caterpillar down, 3m is up. Boeing, 300. They are cutting airlines. Cutting them from by to hold, jetblues spirit, there is going to be a lot of this from analysts based on what we are hearing, this coronavirus will have an impact to the bottom line. Buckingham cutting their ratings on Alaska Airlines and allegiant airlines, those stocks being cut from neutral by and in many different sectors. Stuart it is down 6 , delta down 4 and a half. Ashley not only is it do you want to go to asia, probably not, do you want to travel anywhere in close proximity with the other passengers and have a filter system on the plane recirculating air. Stuart people no longer wish to be associated closely with their fellow americans, keep your distance. Airlines are considered petri dishes. Travel 2020 as a hashtag and have pictures of themselves with a mask on. Stuart put up the maga stocks, they used to belong to the trillion dollar club. Microsofts 6 lower, apple down, 282. Google down 34 and amazon down 44, 19. 35 is the price. Are they worried about some is a face masks . Amazon is absolutely. There is Strong Demand to protect yourself with a facemask. If you are selling it as thirdparty on our site and you want to inflate the price for no reason they will remove it. That has been a winner all along. They are making news, booking 14 for facemasks in the past month and they fulfill these orders but they are selling out right away. They are made in the usa with all the materials made in the usa as well. The supply chain is completely here. Stuart can they ramp up but it is a fair question. If you sell everything you can make, i would jack up the production. The thing with the facemasks, you have to make sure you have the right one. Number 2, they prevent particles from going out if you are sick but not from coming in. You can still be exposed even if you do have a facemask on. Stuart im not convinced how effective they are. Stuart show me the big board. A lot of people will be joining us. 461, the futures on the dow, close to a 200 point loss on the nasdaq. The dow down 450, correction territory would be minus 10 . A short, start correction move. The virus is hurting microsoft supply chain. Ashley they are putting out warnings, quite a few other companies, microsoft says in particular personal computing sector, they will miss their revenue target. They say items that are most significantly hit because supply chain issues would be microsoft windows, pc accessories, video games and more. They are back to the supply chain. Second quarter guidance, if this goes on longer it could hurt further down the road. Stuart it looks like the spiral down is speeding up and i suspect it is because of that case in california, any travel with the virus carrier. Paces beginning to speed up. Into spring, going to milan with twee 7 people on it, that tends to feed on itself. When you get markets like this, shoot first and ask questions later and where she stops nobody knows. We had a gargantuan rally for 14 months. And outlier event, this is going to be news driven but you have to realize we have a repricing of global and corporate growth. When you hear from microsoft, mastercard, every business and people, just telling, after 3000 points, i would not be surprised if we were down 500. We will bounce sooner rather than later. Stuart i have been remiss. Show the yield on the 10 year treasury, one. 29 . 126. That is a rush to safe haven. The fed, if you look at the future from what the fed does, and the first one as early as april. Stuart we dealt with the virus and the market selloff. The democrats are making this highly political in the most negative way and for the benefit of you and our viewers watch this please. Okay. I am waiting. A proposal now that is meager, anemic. Four years, describe the administrations response to the coronavirus, towering and dangerous incompetence. Stuart that is a disgrace. You should not be so politicizing info to negative way and calling the president names like this in a moment like this. Beyond that they are trying to sell fear in the American People. This is a time americans usually come together and put aside their political differences and say how can i help this president and make sure we call the fears of the American People and that is the opposite of what democrats are doing, politicizing this. Anyone to come at the southern border and have no oversight or rule of law and our president is the one who should know what is we are going to be safer as this moves forward on top of the fact he stopped air travel to china on put the Vice President in charge of it. Lets see what the American People are safe. Stuart the president had to walk a fine line between warning there is real danger here and reassuring us that we are going to be safe. He walked a fine line. How do you think he did . He did an excellent job in the right thing addressing the American People especially as democrats are using this for a political game to sell fear in the American People. And you should have confidence we are putting our resources to bear, we will take control of this, the Vice President will lead the charge in the calling the fears. This is the United States of america and we are going to make sure we take care of our citizens. Stuart what stood out to me as the president was asked directly do you have plans to quarantine whole cities . The president said yes. If it gets that bad he said yes. Prepare to take strong action by the sound of it. He will be ready for every possible scenario but his job is to make sure he doesnt create a panic or send people into a frenzy when it is not warranted and we are not there and we are preparing, putting protocol in place and democrats should be joining him and saying we are going to Work Across Party Lines to make sure the country is safe and there politicizing it which they have done with every issue. That is why they are so shameful and solves many problems the American People are facing. At a time of crisis they usually come together and once again. What is going on here, theres a huge stock market selloff in progress again today. I think that is in part the result of the new case in california which is unexplained by travel contacts with another virus carrier, did that upset the apple cart . We will see market selloffs as other things, i will invest, this is a time stocks are low. I bet on the American Economy and i believe in our president and our Health Officials and the cdc and the things they are going to do to protect the American People. Stuart you bought these things. My husband and i did. Stuart thanks for joining us, see you again soon. At the New York Stock Exchange christine is with us in studio today. What is this about a chinese city at the center of the virus . The hubai province will pay roughly 1,400 us. If you go voluntarily to them they check you and confirm you have the coronavirus and they will pay you. You have to have a virus and they will pay you. They are trying to incentivize people to voluntarily submit to all the tests for their fever and this is the first time you have seen a large amount, others have done other amounts. You can see the drastic measures how they want to contain it. Stuart they are only reporting cases from specific hospitals and not from people who might be living in their own homes, hold up in their own homes who may have it. This is a way of getting them out. It is not just china. Think about italy. Several towns are in lockdown. Someone may have it. You wont now because they are in their house. Less people are going doortodoor and doing temperature readings, we may not have the most accurate reading and people may be healed. Many reports, children seem to be faring quite well after a few days and even healthy adults. The numbers could be off. This is incentive to get people to go out and actually contain them in a certain area and find the number. Stuart this is a question i was asking everybody yesterday and i asked you. You asked yesterday what would happen in the United States if it transferred without somebody actually traveling and that is exactly what happened in california. Stuart have you seen anybody wearing a facemask . Again this morning, i did on the way to work at 7 am i saw someone wearing a blue mask. It was 22. 95. I had to go to three locations and this was 3 weeks ago. And in florida home depot limiting you to 10 per person. The thirdparty sellers not to gouge. Stuart i am using it for my official indicator. If i want to see lots of facemasks appear on the streets of new york you are close to the point people stopped going out, stop congregating so much and the economy slows. It is a key indicator. You buy stocks or companies that are stay at home. Uber is not doing well, live nation is not going well. The ones you stayathome are and just got to figure out what they are. Stuart netflix is definitely doing well. Good stuff. Get back to the exchanges. Scott martin is with us now. The opening bell, we will be down 400 points. Will you make any prediction dangerous that is about how we will close today . I love dangerous predictions. We will open nasty and close hire from those levels. There will be buyers coming in. It wouldnt surprise me if we close 500. I shouldnt say that, markets down 500. Some data is coming in with respect to the followup for quarantine, these levels, it is getting there today as if it is a worldwide epidemic, everybody will stay through the end of june. That is the thing the market to do when they get irrational and this is one of those times. Stuart stay there please. Lets go