with the golden arches in its sight. amazon doing something for the first time ever as its ceo cashes in. february 5, 2020 "worldwide exchange" begins right now. ♪ >> good morning. stock few touutures ahead of a d setting session. gaining 500 points before the end of the day with a 407-point gain it was green all day long. a strong move higher for sure. a big move there let's check out what is happening with futures those gains will be furthered this morning check out what is happening right now. the dow is going to open up other 300 points if these gains hold s&p up by 32 nasdaq up by 114 points. technology trade roaring back to life to the bond market now, we are seeing yields move higher. people selling the safety of government bonds 1.63% on the 10-year side. 2-year, a hair below 1.43% going worldwide. that green feeling is taking hold across the globe. you can see not any red. it is all green. the nikkei in japan up shangh shanghai composite is up to europe, it is green there as well cac up 1%. ftse 100 in uk up. and dax is up. huge move higher for markets around the world the coronavirus outbreak continues to rise. death toll to 492. and the infection tally to more than 24,000 cases. this carnival princess cruise has placed passengers and crew on mandatory quarantine for two weeks. a passenger has tested positive. one of those is from the united states a list of companies projecting earnings impact. nike said the especially deputy epidemic saying, this situation was not contemplated at the time we provided q3 guidance and will update our impact on the earnings call. shares lower on the news that half of the stores in the market remain closed. we are just about flat today tune in to that special report on the coronavirus as well let's get to eunice yoon, live in beijing nike is the growing list of companies adding to concerns what else can you tell us about the business impact? >> reporter: right now, the focus here from the chinese health officials has been on the race to try to find a drug treatment to fight the virus today, the national health commission released revised protocol and hailed help and arrival of an anti-viral drug that has proven to be successful in the united states this drug is being tested on patients now in wuhan. the epicenter there had applied for a patent to use it there saying that the u.s. has indeed sent some supplies to wuhan. those have arrived confirming that the u.s. has sent experts as part of a world health organization group. adding that china is now at a critical or crucial stage in this effort to try to prevent an epidemic from getting more out of control president xi jinping had said this is now a people's war against the virus and said that this is going to be a test for governance here in china >> thank you live from beijing with the latest there. other companies seeing the impact is disney expected to take $175 million hit if hong kong and shanghai parks remain closed another month saying, quote, the current close your is taking place during the time in which we typically see strong attendance. speaking on closing bell yesterday. >> we are not seeing any change in terms of bookings or travel to the united states some impacted from that part of the world but that is relatively small in terms of visitation to the united states. i don't want to say never or it couldn't but right now we are not seeing it. >> shares of disney has moved between gains and losses you can see they are currently up as the company reports the beats in profits adding that disney plus has 28.6 million sub subscribers up from 10 million arjun with us. this could be viewed as a positive report but the coronavirus cast a shadow on everything china related >> certainly all eyes were on disney plus they had that initial 10 million figure that has jumped to over 28.6 million driven a lot by the deal with verizon. you also saw a big uptick on their website. that is promising as well. you've got to put this in the context of the broader streaming effort hulu and espn plus together. s compared to netflix that has over 167 million paid subscribers. so disney has a lot of catchling up to do they'll be investing heavily in content to catch up with netflix as well. strong performance in the film division thanks to "frozen ii. and the latest "star wars" film. the black cloud right now is certainly this coronavirus the park shut down in hong kong and shanghai has caused uncertainty. all eyes will be on the impact of the coronavirus going forward. back to you. >> arjun, let's talk about a non-dow component. tesla. closing at a record $887 a share. that added about $20 billion in market value roughly the value of fiat chrysler the market cap is now equal or greater to that of nike, nvidia or bristol meyers. it may take a little longer as that stock has beendown grad do. looking at the screen, it's $866 pre-market there is a sense it cannot be sustained in this environment, right? >> this is an absolutely insane move nothing has materially changed we had a good q4, good q3 and delivering the cars but nothing has changed. this is all just momentum in the market right now speaking yesterday, it remains me so much of that bull run we saw in bitcoin at the back end of 2017. not so much comparing the products but more about the thinking behind it people investing in bitcoin feel this is the future in money. i guess people investing in tesla believe they are the future in electric vehicles and sustainable energy if you are looking forward, it is difficult to see how this can be sustained at this pace. >> these shares, it takes a lot of guts to be either long or short that stock live with the latest thank you. let's look at other top stories with rahel solomon it will be tough to top tesla. >> it is macy's having a tough time and will close 125 stores. cutting 2,000 corporate jobs they will shift to smaller format stores and strip centers. shares are up. we skbekt to hear from the company and get more guidance. amazon ceo sold more than $1.8 billion of shares began on january 31 and continued through monday in total, he sold 905,000 shares as of stock closed above the $1 trillion market cap yesterday. tesla, we talked about shares of ford sink. a warning of higher warranty costs and profits and continued investments. the company is said to lose some $3 billion in market value ceo jim hackett on the call yesterday. >> our execution was not good enough we recognize this and are accountable for it we've taken steps to address the shortfalls >> they did not want to discuss the impact of coronavirus on its bottom line. >> china, the biggest market for growth right now thank you for that when we come back, president trump delivering the state of the union address. we have an expert panel to break down his comments. >> since my election, u.s. stock markets have soared 70% adding more than $12 trillion to our nation's wealth transcending anything, anyone believed was possible this is a record and something every country in the world is looking up to, they admire ea got that and more still ahd. dow futures up 255 points right now. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. ...take the personal assessment i love the new myww program, because it's tailored to you! and get matched with a proven weight loss plan. find out which customized plan can make losing weight easier for you! myww join today with the ww triple play! beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. welcome back stocks point to another day of gains as the dow looks to open implying a move over 300 points. the nasdaq which closed yesterday at an all-time high is pushing deeper into record territory. took a turnaround 3:30 a.m. eastern this morning on reports of various news outlets immying some positivity. those report a lot of speculation these days we'll keep an eye on those that shift happened a lot because of those reports happening now, bill stone. you are a chief investment officer. it looks like friday is a foregone conclusion. it looks like the dip buyers win again. >> so far, so good i thought we'd have a little more of a dip. when you look at what you can take from history, is that these things do cause short-term dislocation. the fact will they rarely change the trend. we'll see how it plays out you have to be prepared for the bumps. working on positive stories. it is unclear yet. i would focus on the fact that typically the way it plays out, you see some impact on earnings here for the first quarter we'll see impact on the global economy. some part of that gets pent up to get back again. some of it depends on how long this goes on we talk about the things that can have an impact thinking about the earnings picture that is positive some growth in the u.s., not like china all of this back drop setting up a pull back we thought we would see. it is not going to happen. what does take this thing down you mention profitability that prompts another move >> some of that is less like a worry about a change in administration, things like that not trying to make a political statement more it is just uncertainty you know what you got now in the sense of if the economy continues, that is a positive for the president. the other part is that some people would have worried earlier about yields moving up part of that is the coronavirus bringing down those yields trying to come up with things that might put a dent in things. perhaps that china doesn't get the economy moving again part of the optimism is the stimulus and more. >> it seems to be a theme. the chief investment officer at stone, thank you we appreciate your market thoughts still on deck, a look at the stocks to watch. one tech company under pressure despite user numberers that's coming up >> announcer: today's big number, $13.5 billion. how much elon musk's net worth has increased. that's a gain of nearly 50%. 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. but in my mind i'm still 25. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex. find our coupon in sunday's paper. welcome back to "worldwide exchange." as you can see, the dow, the s&p 500 and nasdaq are set for pretty large gains at the opening bell a lot of green but it is not all positive let's get a check on the big moves today. take-two interactive is falling as a key member behind the games like grand theft auto 5 and others are leaving the team. departing next month he had been on break that news pushing shares almost 6% lower snap's fourth quarter revenue rose 44% as it added users but that missed forecast it continued to face tough competition from digital ad giants like google and facebook. wall street was disappointed with the first quarter outlook those shares down 8% match group's fourth quarter earnings were in line. revenues came up short as subscriber growth for tinder fell lowest. coming up on deck, oil under pressure this morning with crude dipping below $50 a barrel this week we are looking at whether energy sector's best ysda are truly behind it when "worldwide exchange" returns after this imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. shipsticks.com saves you time and money. beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. look at those futures. when we come back, the list of companies issuing a wuhan warning. our expert panel breaks down the president's state of economy speech last night. more when we return. ♪ ♪ ♪ ♪ yes i'm stuck in the middle with you, ♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. so it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. ♪ ♪ the rally rolls on erasing all of last week's selloff president trump taking a lap with the victory from his state of the union address is the energy sector in a death nil phase talking about whether that is the case as the second half of "worldwide exchange" begins right now welcome back to the show this is how stock futures are looking at 5:00 eastern. gaining just about 95. all on optimism brewing on possible vaccine projectries west texas prices are at least moving slightly with the upside today. 2% gains there remember, we hit $50 a barrel with concerns of the outbreak. ahead of the expected vote to impeach president trump, the president offered a defiant speech and used his 80-minute speech to tout successes including on the economy >> from the instant i took office, i moved rapidly slashing a record number of job-killing regulations, enacting historic tax cuts and fighting for a fair, reciprocal trade agreements our agenda is pro worker, pro family, pro growth and pro american >> we'll go now to washington. walk us through some highlights and help us do some fact checking on the claims >> reporter: this was a starkly partisan speech met by a starkly partisan reaction from speaker of the house sitting behind the president. on the economy, the president devoted early parts to laying out successes and making the case for his reelection. taking credit for the soaring stock market and usmca creating over 100,000 new jobs. he said his strategy confronting the chinese has simply worked and is a success and relations between u.s. and china are now on a good footing. this is a speech that will be known for "the greatest showman"ship as much as partisanship at one point, he surprised a military family reunited them with a soldier who had been deployed he surprised a school girl with mention of a scholarship she would receive. he gave the presidential medal of freedom to rush limbaugh. it was a dramatic moment because he recent announced he is suffering from advanced cancer provocative for doing that in the chamber during the course of the speech in the end, we saw another moment there as the president finished his remarks, nancy pelosi sitting behind him, tore up a copy of the speech indicatingher displeasure. >> bringing in our guest now, a cnbc contributor amon mentioned some of the memes going around the front page of the new york post says tore loser front page of the usa today has approval rates high for president trump after the address. is this an economy trump can rest his luaurels on? >> look, there are polls that say 70% or more of the americans like what he's doing think the economy is good to great. that is a pretty good record for someone who wants to run for second term as president i think democrats have not fully embraced the reability that this is not 2009 anymore. this is a decent economy could be better. this is the kind of economy as a president you want to run on to say the lowest unemployment rate in 50 years is a good thing. >> talking about the boom the country is fashion it is a good economy by many measures around the world, a very good economy there was no real mention of tax cuts 2.0 is this something that has gone away or something we can count on in coming months? >> the president said he is a pro worker, pro growth, pro family agenda. i think trade is really an issue at the core, i find it hard to believe at some point, he's not going to announce another tax cut. my guess is that it is a payroll tax cut and some business tax cuts this is still the republican party. i would expect to see a tax cut. maybe he's waiting to see who the democratic nominee is. >> amon, i want to bring up the idea that we have trade deals and relationships to hang our hat on here. president trump talked about what is happening with china i want to play for you what he said >> i also promised our citizens i would impose tariffs to confront china's massive theft of america's jobs. our strategy has worked. days ago, we signed the ground-breaking new agreement with china that will defend workers, protect our intellectual property, bring in billions of billions and open vast new markets for things made and grown here in the usa. >> it has become more complex because of the coronavirus is there any sense that the u.s. and china are headed to more contention with the next round of trade agreements? >> it is not clear when they would start. the president suggested early on they would start immediately then he suggested well, maybe he will wait until after the election the message the president was sending was both to markets and t to voters. that message was trade truce for now, that strategy has worked suggesting it will bring jobs back to the united states. something he campaigned on in 2016 he's suggesting that it worked he's trying to collect the political credit for that. he's saying, look, we did what we came do and now you've got to reelect me to jimmy's point not much that is going to happen this year. democratic congress with an impeached president is not going to pass an agenda. not likely anything is going to happen this year. >> that is a campaign talking point. if the president gets a second term, we'll see if that happens or not >> one place where we have found bipartisan support, a possible truce between republicans and democrats is on infrastructure there was talk about it last night p. what are shots we'll see a fiscal sim plus happen >> the big problem even if republicans figure out exactly what they want to do, there are still plenty worried about the deficit. there is no agreement. if it happened, it would be stimulus not paid for. a second term, i could see it happening. he's not worried about the deficit. he'll try to crank up that growth rate. >> thank you for helping us to break down that growth rate. let's look at some other top stories this morning >> nike warning of a material impact of operations across china as a result of the coronavirus. half of the stores in the country have been closed the ones that are open, are operating on reduced hours nike says the situation was not contemplated at the time we provided guidance. we'll provide operational impacts on the q3 call shares are pretty flat pre-market >> and nike ceo john donahue will be with us at 4:00 p.m. eastern. general motors has unveiled the new cadillac escalade. the vehicle will go on sale later this year starting at about $76,000. shares of ebay surge following a report that the owner of the new york stock exchange has made a take overoffer they approached ebay and added that new companies are not in formal talks saying that its policy are not to comment. an ebay spokesperson also declined to comment. disney reported the first quarter results. marking the first earnings report sup skrieber cou subscriber count at 28.6 million they expect to take $175 million hit with the closure of the parks. the precise magnitude of the impact is depending on the duration of the closures but good news for streaming side the amusement park side, not so good wait to assess and see how wide spread this becomes. >> certainly, a lot of uncertainty. companies are saying we'll watch it we don't know what will happen thank you for those. coming up, oil prices they did dip below $50 for the first time in a year amid continued pressures and worries. we are breaking down whether it is an end game f torhe energy sector when "worldwide exchange" returns after this do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. the dow would open by 275 points s&p and nasdaq as well oil prices are rallying as well today. wti american and brent world prices up over 2% on hopes the partners will offset any impact of coronavirus down 12% prompting some people including jim cramer to consider throwing in the toul on oil and gas because of what he sees on a big shift. >> i'm done with fossil fuels. we're done >> because of? >> we are starting to see companies regard them as big pension funds. nobody cares this has to do with new kinds of money managers who want to apiece younger people who believe you can't ever make a fossil fuel company sustainable. trying everything they can but in the end, they make fossil fuels. we have in the death knell phase. >> barclays coming under pressure for its role in financing. let's speak with our guest a holder of interest of oil and gas, roughly $2 million in assets do you feel jim is right is this the death knell for oil and gas? >> i think what matters is that this is a different sector this is more about the last 10 years than the next 10 years and the cash flow. the industry is already rerated. if you think about it in terms of tobacco it trades at a lower valuation >> it doesn't grow that's why >> 14% of america smokes, 100% of america moves when we look at what is happening, it is already rerated to afford a six times sector now the energy sector pays more by a factor of two. the dividend is like 4%. we can own the transfer at more than a half a percent. we can own shell and bp with historic valuations on every metric i think it is interesting on a cash flow and dividend play. >> one of the reasons why those might be as high is because of the capital depreciation of stock has pushed levels low. is it safe to go into some of these just for the dividend? >> it is not just the dividend two things are going on in oil market now e&p investors are telling the story, which is accurate, that when we look at u.s. production, it only has 5 to 12 years of core inventory that makes sense to drill at $50 or less. after that, we need $70, $80, $90 to drill u.s. oil. there is a core. everything else, we don't drill. the crude market is saying that it doesn't matter what happens with saudi production or any other production, the u.s. can continue production forever. that's yt curve is flat at $50 those two stories are there. we can't have production on the crude side and the e&p side. >> given that scenario, you put a number of parameters on it where are the best investments >> it has to be financially stable, relatively low leverage. mrg transfers and super majors on oil and gas in the u.s., there are too many oil and gas companies. small companies are a dangerous place to be. in my view this is a industry that needs consolidation. there is a rush for that the bigger the companies, the more leverage. the easier it is to drill. >> before we let you go, european and u.s. majors are slightly far apart is the future with the european or u.s. majors >> from european majors like bp and shell, they've led the way in terms of broadening the perspective of the business to the next hundred years to alternative and renewable energy i think the industry overall understands that cash flow is not to be used for production and to return to share holders in 2018, hat third went back t drilling last year, it was even more. last year, 40% of revenue went to dividends and share buy backs. europeans led the way. >> thank you we could take this conversation forever. oil and gas a hot topic. we appreciate you coming in. >> thank you on deck, markets looking for another day of big gains 102 for the nasdaq shares of tesla taking a step back after adding more than $20 billion to the market value yesterday. we'll break down whether the stock still has room to run. you can watch us live or on the go on the cnbc app "worldwide exchange" will be back in just a moment. beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. welcome back let's check out other stocks on the move gilead, outlook for 2020 expects revenues to be flat. shares off 0.5%. >> plantronics with adjusted forecast below analysts estimates down 33% ford is tumbling after reporting a fourth quarter loss on slower sales issuing a weaker outlook for 2020 continued investments in electric and self--driving cars. let's look at what is happening on the other side of things with tesla. the number equal to the entire market cap of fiat chrysler. pulling back about 2% this morning. they've nearly quadrupled since october. tesla's market cap has topped $160 billion that puts the company in rare air ahead of big names like nikki at $156 billion. in individunvidia and mcdonalds and citigroup. that market cap is roughly equal to the total market caps of these companies. $85 billion gain almost the same as morgan stanley, altrea, goldman sach and more. let's talk about what is happening with mark tepper i don't know what to say, mark do you buy tesla at this point >> i think tesla is the most dangerous stock in the s&p 500 i'm terrified to own it, to short it it has a mind of its own it seems like every time there is the slightest bit of good news, you've got a lot of shorting we prefer to invest in a good, solid, tradeable management team for tesla, it doesn't fit our strategy wish i had a crystal ball a couple of months ago and was getting outright now but it is dangerous right here >> tesla belongs in the s&p 500. you wonder when it is going to be included. i got to ask you this. is this a market justified does this lead to the upside >> the number one question we are being asked is if the market is overvalued. including the five-year average of 15, 10-year average of 15 looking at the pe multiple right now. yes, it appears to be overvalued assets are all inner related stocks look tell tiff to bonds the only way to measure is to look at equity risk premium. take the equity risk premium, it is over 300 basis points throughout history, forward 12-month returns at that level are positive 12% stocks still have a reasonable valuation here >> mark tepper is a buyer. liking those valuations. "squawk box" picks up coverage and starts right now good morning we'll show you the latest comments from nike and tesla ahead. >> house speaker nancy pelosi ripping the state of the union, literally. we'll dig through earnings of disney, chipotle, ford and tesla. wednesday, february 5, 2020. "squawk box" begins right now. ♪ >> good morning. we are live from the nasdaq marketsite joe and becky are off. michelle caruso-cabrera is with us day three. >> power breakfast >> exactly we have a lot to talk about. we'll get to that speech by the president and pelosi ripping up the speech but we want to start with the markets righ