State of austria it is thursday, march 5, 2020. Worldwide exchange begins right now. Welcome to the show,we are kicking off this thursday morning with wall street waiting for another wild day on track since 2011 there have been four swings in the dow you can see those two splochs represent the single point gain adding some 190 points alone futures are telling a different story this morning. The s p down by 65 the nasdaq down by almost 100 at this stage in the bond market, the 10year is back above this we are right around the 1 mark. The twoyear note yields 30year long bonds there early trade in europe now. We are seeing red across the screen the dax off 1 ftse 100 off by 1. 3 denmark and turkey, the only markets showing signs of life in trade. Overnight sessions in asia will swing that way the shanghai composite up 2 . Well go to matt for more on asian trade. Asian markets mostly ending in positive territory after that big snap for us, one patch of red hear the china markets and hong kong the best performer china up shy about 2 china pledging donations to the World Health Organization and nations affected by the Virus Outbreak we did see gains there in the order of around 1 the yen continues to remain strong we had stronger than expected trade numbers there across the board here, a strong day for the asian session. Back to you. Thank you for that update lets bring in victoria. What a wild ride it has been is there anything that has happened over the past several days that makes you think this is over and we are ready to make a bigger bounce in the overall markets . I dont think this is over by any stretch. We expect more volatility Going Forward. Perhaps not to the same magnitude. You mentioned all the 1,000point moves we have seen look at the futures this morning, down 500 already. Probably a pull back from the large gain we saw yesterday. The coronavirus is still such a big uncertainty. The unknowns are associated with it there i think well see more volatility from boeing a lot of people have forgotten that story that will affect the fundamentals Going Forward the election is still an issue there. We still have a ways to go with that is it an opportunity for investors and traders. That often creates those and are you finding those and where are you going for those trades sure. The last thing we want is whether we do it or our clients, we dont want them chasing the market you need to be more strategic. Look for opportunities we have done that. We are not in there every day. We have sold our Take Two Interactive portfolio and went into the utility power name. Find opportunities of names maybe youve been watching and waiting for the price to come down a little bit. This can be your entry point there is going to be a lot more Going Forward. Is it worry some for you. It signals this panic mode with the emergency cut from the fed, you would anticipate that in the market a little bit you would think we were down to. 94 i anticipate well see the yield go higher as we start to support the results and the action you had the bank of japan, the bank of england there could be a lot more coming. That could put maybe a floor on the panic we are seeing. Im not sure that is going to do much Going Forward what has you the most optimistic about the markets certain parts of the market dynamic. Those coming back historically we think. Way think once those come back, the markets will go higher when we come back, the massive 8 billion u. S. Spending bill and the drastic methods one country is containing to contain the outbreak first, a look at the dow ledgers so far you can see, boeing, yes im stuck in jpmorgae middle with you, chase and microsoft. Well be right back after this 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. Welcome back to Worldwide Exchange. The houston approving a spending bill and the hope to fight the Virus Outbreak frank has more details california is declaring a state of emergency as the number of infections in that state skyrocket to more than 50, the most in the country. The spike is linked to a cruise ship that recently returns to San Francisco from hawaii. New jersey reports the first presumptive case the senate is expected to pass the bill and the president has indicated he will sign it into law. More than twice the amount President Trump originally requested. United airlines and jet blue are cutting costs and putting things into place as travel falls amid the outbreak. Including a 10 reduction in u. S. And canadian flights. International flying reduced by 20 in april and may united is freezing and delaying merit based increases. Jet blue cutting 5 and assessing if more cuts are needed to italy now where the death toll has jumped to 107 as the country orders the closing of all schools and universities nationwide well go to milan with the latest near the epicenter of the europe outbreak. Can you tell us about why these schools are getting closed you mentioned the number of the death toll rising to 107 the number of confirmed cases here is now 3,089. Now the virus has been registered in all 20 regions of italy. Days ago, we were concentrating on the epicenter which were three main regions at this point, the decision to close schools and un verities and to lockdown and increase them has to do with wanting to clamp down early on the spread of the virus this could help to keep this more contained clearly, its a more severe measure. Schools and universities are closed midmarch. Gyms, cinemas, theaters are closed football matches will be held behind closed doors until april. So no more hugs and kisses, which is the typical way of saying hello and goodbye no handshakes. The indication is to keep one meter distance from other people people over 75 have been asked to stay indoors and people over 65 with Health Issues also requested to stay indoors. We do have a very eltderly population italy is the second most Elderly Population in the world. Since this is the category of those that could have the worst complications, it is important to contain this issue. A 3. 6 billion package has been put out. Right now, clearly, the main focus is trying to keep this situation as contained as possible to limit the Health Issues and the consequences on the economy. To follow up quickly here how is the Business Community responding there italys business leader. What they have been requesting is to put out a plan of whatever it takes a threepoint plan of public investments. The 30year bond and liquidity to try and avoid this critical situation. Keep in mind that Fourth Quarter gdp declined for 2019. We are in a situation where this economy is already suffering we need to keep the economy going. The latest of the coronaVirus Outbreak be sure to tune in on the special report as we broke down the moves you need to make amid the continued volatility at 7 00 p. M. Eastern time. The consumer staple shock trading on twoyear highs. What its ceo cold our closing bell coming up and why zoom video is buffering a bit too much why and more when Worldwide Exchange returns after this one night, two nights, free night. Book now at bestwestern. Com. Welcome back shares of American Eagle trading higher as the retailer posted Fourth Quarter results the combination of healthy brands and strong Balance Sheet would help it compete. Can you see shares up 6 zoom video shares are down despite posting earnings and revenues that exceeded expectations the Video Conference service has seen a record surge as more and more Companies Move to shift meetings shows shares off 6 premarket and Marvell Technology getting a pop on earnings and revenues including a roughly 5 reduction in revenues stemming from the coronaVirus Outbreak those shares up 9 premarket. Still ahead, forget gold when it comes to finding market volatility the sector you may want to consider coming up next. Plus we go live to vienna where opec and ally leaders are looking for consensus. We are going tbrk o eait all down when we are back right after this hem to know that innovation is not just about that one aha moment. Science is a process. It takes time, dedication. Its a journey. Were constantly asking ourselves, how can we do things better and better . what we make has to work. We strive to protect you. At 3m, were in pursuit of solutions that make peoples lives better. Take the personal assessment i love the new myww program, because its 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 [ fastpaced drumming ] welcome to Worldwide Exchange. What you are seeing is a dow indicated lower by almost 600 points representing the lows so far future wise down 475 points getting you to the implied loss. Well keep an eye on that. Lets get a check on the other headlines. Frances rivera is live with the latest we start with the Supreme Court versus Chuck Schumer in a rare rebuke, chief roberts condemned a comment he made at an abortion rally. Justices heard arguments in a case that would chip away at abortion rights in indiana they are taking away fundamental rights i want to tell you kavanaugh, you have released the whirlwind and you will pay the price chief Justice Roberts called his comments threatening he said the comments were a reference for the price paid to put these on the court Early Release denied for madoff he is battling kidney disease, shouldnt be released early even if the disease kills him within months his lawyers asked for a compassionate release but the request was denied alex trebek gave an update. He said the journey hasnt been easy but with a positive attitude, anything is possible looking good and still at it hope he keeps it up. I agree a positive attitude is what it is thank you for that story still to come, breaking down the volatility and the stocks. What has wells fargo back in hot water more as we return after this through the airport or rik having your clubs lost or damaged by the airlines. 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Align helps to soothe your occasional digestive upsets 24 7. With a strain of bacteria you cant get anywhere else. You could say align puts the pro in probiotic. So where you go, the pro goes. Go with align, the pros in Digestive Health. And try align gummies with prebiotics and probiotics to help support Digestive Health. 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. Including your Interest Rate right by locking in a fixed low rate today. And you can get your money right with sofi. Check your rate in two minutes or less. Get a nofee personal loan up to 100k. Wall streets roller coaster ride continues with the dow notching another gain in less than a week. Celebration may be short lived as facing potential ahead. Finding opportunity amid the market turmoil the bright light real estate may be offering some investors the second half of Worldwide Exchange starts right now markets in turmoil as investors brace for another rocky open the dow is indicated down almost 600 points this does represent the low right now for dow futures as well as for the s p 500 down by 77 the nasdaq down by 227 points at this stage if those futures hold at the opening bell. The second gain just this week alone. Now on track for its best week since 2011 in the past eight days, there have been four 1,000point swings in the dow. The most resent, the biggest since 2018 United Health group adding some 190 points to the dow. You can see we are off almost a percent premarket a lot of those health insurancers and premarket getting a bid after super tuesday results and the surge in those polls. In the bond market, the 10year trading briefly. 97 , twoyear note yields,. 67 as asia surges, well go to joumanna for more on all of that over to you. You can see it was a strong session across the board that has been a theme. We are seeing a rebound. Shanghai composite at a twoweek high we had some commentary who said about 16 billion has been allocated so far from the fiscal side of things there is still more fire power the 50 million package. These markets are seeing love this morning shenzhen and hang seng seeing some love. Some of the insurer names performing well overnight. Let me take you to the european markets. It is a completely different picture. A lot of red on the board. Starting with the ftse 100 in the uk, being led by minors. We are also seeing pressure from the oil names with a lot of focus on that opec meeting that has been putting some pressure on the uk index also some not helpful commentary out of the bank of england who seemed to be hesitate on the cut. So not helpful especially after that fed cut we had trading on that back cut. Airlines getting hit the International Airline association has forecast the growth getting a lot of hit you can see all of the other indices trading as well. We are not out of the woods yet. In this week, indices are trading. Well pick up on that opec conversation right now members and allies are descending on austria. The group moving closer to a cut of at least one million per day. Leading to the lowest levels in years amid the outbreak. Our own dan murphy joins us now. Lets talk about whether or not we are going to see those cuts and what we can expect from all of these Oil Ministers the ministers are inside the room discussing the cuts clearly this has been a major issue for the oil market at a critical time for the economy. Weve seen the impact and oil prices already down. A number of scenarios already discussed. A cut of 600,000 barrels as recommended. At the top end, a blowout figure of 1. 5 million working to stabilize the market at a tough time when it comes to the outlook. Ministers and sources we have been speaking to not saying much as they left their hotel rooms listen in as we speak to the uae oil minister, his excellency we will discuss recommendations today. We will see and meet our ministers. They could have other opinions we are taking care of the fundamentals of the market so we are not looking at the political or any motives speaking there from the uae dom, getting consensus on a cut still a challenge with russia still dragging its feet on this. You are outside the conference, not inside and there is a reason why. Of course it is coronavirus. Normally, wed be down in the basement of this building or running around chasing ministers. Not this time. All journalists have been asked to stay outside. Those allowed inside those doors are being heat tested before they go in as well so amplified concern here about the spread of the virus from china. Back over to you thank you the latest on the opec meetings. This mornings meeting coming as they are trading in the oil territory. More than 29 off its most recent 52week high. Futures down ice brent crude futures down 50. 74. Down 30 from recent highs a massive move lower one of the worse performers in the s p. Lets bring in heallima croft we were going through some stats here lining up how bad it has been for mrg markets overall is there any end in sight that cant happen for the oil markets right now . This meeting is so crucial right now. The question is will the opec plus countries that consensus around a million to 1. 5 million if they fail to do that, it could trigger a large selloff. First of all, we should say, i have not been watching opec as long as you have over the last decade, there has been a lot of skepticism lets talk about what exactly is driving some of the debate around this right now. Asking for a bigger move first of all, opec compliance is high at the moment. Certain places like libya have lost output. Iran has been sanctioned opec has been hitting their targets. Not everybody is pulling their weight if we do another cut, who is going to step in the saudis have been driving the effort russia has been slow driving the decision novak flew home last night to try to get sign off from putin on whether russia will participate. Thats where we stand right now. We are waiting on will russia show up at the finish line we have just gotten new stats on u. S. Oil production now the biggest producer 13. 1 Million Barrels a day or there about. Is the u. S. The one they have to worry about because in essence, we are taking all the market share away from them as they cut production i certainly think that has been behind some of the retecance. They are saying why should shale get off scott free essentially saying, no, we have to stand up and try to stabilize things there is concern about will shale free ride on this decision prices are not anywhere near a good level at this point so all the producers could benefit if stabilizers would output coming up on the show, starbucks cracks down on one eco friendly practice amid the coronaVirus Outbreak and look at this mornings s p 500 ledgers. Analog devices, north rop and american airlines. We are back in a moment. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. The senate is set to take up more than 8 billion package the number of infections in the United States rises. We have more on the latest officials in california announce the first death related to the coronavirus bringing the number of deaths in the u. S. To 11 california has declared a state of emergency as the infections there surge to more than 50. Thats the most in the country Vice President pence is set to head to washington as they grapple with their joan outbreak new jersey has the first presumptive case starbucks is halting the use of personal cups and tumblers in the stores cambells soup is ramping up production as customers are stockpiling food with a long shelf life during this outbreak. We made the decision to ramp up production in certain areas where do we see demand coming in at a greater rate and weve upped that level to maximize the inventory. Working to prevent supply chain for products such as goldfish crackers. Thank you as coronavirus cases cause massive changes. Real estate looks to be one safe haven. Diana has more from washington, d. C. Investors are looking for the calm in the storm. Specifically Single Family rentals. Roof stock manages properties. Buyers can go on line and do the whole thing without ever going on to thop investment jumps a safe haven for coronaviru assets and things like real estate. There is a flight to things like treasuries which are down in the 1 range and things like real estate and specifically u. S. Housing that tends to perform quite well in terms of market volatility roofstock noted a 450 jump on its site from germans, 250 jump from australia and 150 jump from the uk in the past, it has been people dont want to travel but if they cant travel, being able to invest remotely is perfect. A combination of not being able to travel but placing capital in areas that are potentially more stable i asked already given the shortage of homes for sale, he said there are enough properties we could see some current investors start listing their homes. Im curious i rarely buy shoes or clothes without seeing them or touching them physically. How exactly do people go about wanting to put that many much to work on line without stepping foot on the property they are doing it already you can buy a rental home in ohio and never get out of their children areas like california where weve seen the virus increase, that is a big renter invested market a lot of these come already with a renter in them they do the work for you a fascinating story the fact that you can find Investment Income without even going to see the property. Other names where investors could find safety, we have john kim here an analyst is here with us diana had a great story about buying physical real estate without ever touching them you buy a Real Estate Investment share that spins off cash. One of the best performing sectors so far why . We are expecting 4 Earnings Growth as long as the economy is holding up well, it is a great scenario you could argue those are probably two or three levered sectors. Theyve been on such a huge run so far that can continue what is the impact so far. We start looking at particular sectors. One we like is Health Care Reits sector the aging population and demand for health care. If there is a pandemic or outbreak, we will see demand Health Care Properties and health care are two reits you like they own medical Office Buildings with very strong Balance Sheets a lot of these are longterm decisions. There is not going to be a lot of earnings volatility over the long term. One has been reits tied to technology in an environment where coronavirus possibly keeps more people at home, do those become more attractive as well . Absolutely. There will probably not any slow down of demand for data. If anything, if people are working at home or staying at home, watching netflix rather than going to movies, you can make the case for demand we talk about the real estate picture overall, most americans, the biggest investment is their home on your mind, given what p is happening right now. Relative to the shortage of the jobs produced over the past decades since the home crash residential has been a great sector reits have become very strong. We like manufactured housing this is a sub sector where residents use their home we like sun communities. Thank you very much for those picks as well. On deck, we break down the moves you need to make as volatility continues in the markets. The do the dow indicated down you can always watch or listen to us live or on the go on the cnbc app for the latest headlines or moves you need to watch. We are back right after this hi were glad you came in, whats on your mind . Can you help keep these guys protected online . Easy, connect to the xfi gateway. What about internet speeds that keep up with my gaming . Lets hook you up with the Fastest Internet from xfinity. What about wireless data options for the family . Of course, you can customize and save. Can you save me from this conversation . That we cant do, but come in and see what we can do. Were here to make life simple. Easy. Awesome. Ask. Shop. Discover. At your local xfinity store today. More than 50 billion amid the selloff nearly s p 500 fell roughly 10 during that time span the House Financial Services committee making those accusations adding that the bank possess a major risk to consumers that comes up next week the former engineer for googles selfdriving car has filed for bankruptcy he was ordered to pay for breaching his contract and breachi breaching confidential agreement. He helped to create a Company Later bought by uber the dow implied lower by 580 points you can e a general slide moving to the down side again currently down 400 points. Historic the reason why the last few days, representing the benchmark have gone below 1 well below that mark hovering around. 965 right now. Joining me now, managing director and cnbc contributor. We have talked about the traders take on the whole thing. What had you interested the most the general thinking was that we were happy about the political wins compared to the day before. When the fed had the emergency cut and we broke off that we priced that in too there were so many shortterm traders. We had taken that back with the political wins weve talked about the bear case for the economy. Thats evident there is a fundamental booey to that theyve already cut 50. When that is done and they stay in the market. When the flu season passes like normal it normally goes into march or april, we havent seen any big deal, all of a sudden, that access is out there. Im not saying im a raging bull right now but i think this fight is fascinating as it goes on i think there is going to be volatility but ultimately, im fine with stocks ive heard arguments made from the bulls that these particular situations represent great buying opportunities because we were so overbought at one point, now things are on sale you only ever see bouts of volatility which camp do you fall into here anecdotally, everybody you talk to is like, im not changing anything. The an add my of deep correction, those people start questioning their longterm thesis and you know what, i dont like the way things are Going Forward. When i hear those people talk about that, then ill be more confident that it is over. This is a correction that came at the alltime highs you put it into perspective. 18,000 people died one in every six people got it in 2009, we had bigger fish to fry. We were dealing with the great recession. The market hadnt been priced and wasnt as prone to do what we are seeing now. What is your biggest move i would say energy. Ill be looking at that myself bullish on energy that does it for Worldwide Exchange. Futures are indicating the lows of the session down about 600 points squawk box begins right now. Good morning, wall street whiplash futures down sharply the dow swinging 1,000 points or more twice during the last three days get ready for another wild session ahead. Thursday, march 5, squawk box begins right now good morning we are live from the marketsite in times square. Im becky quick along with Andrew Ross Sorkin and joe kernen lets check out u. S. Equity futures as joe mentioned big up day for the markets the dow gained 1,173 points but this morning, it is giving back about half of that dow futures indicated down about 577. S p indicated down about 74, the nasdaq indicated down about 224. At this point, the treasury market is back below 1 . The 10year to 2year spread, it could be a sign of what would be coming with the potential recession is now down by just over
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