Transcripts For FBC The Claman Countdown 20240713

Points. As the pathogen makes its first appearance in new multiple countries and at this hour, on the canary islands, where 1,000 people are on lockdown at a luxury hotel, the centers for Disease Control saying an outbreak of the deadly virus in america is now quote, inevitable. Health and Human Services secretary alex azar warning we do not have enough masks and ventilators to handle an outbreak. Coming up, medical experts and reporters are at the ready to handle every breaking angle. The surprise chinese stock thats spiking right now, the two u. S. Banks telling their employees to stay away from italy, and talk that the olympics could be canceled. Less than an hour to the closing bell in this final hour. Lets start the claman countdown. Liz we have this breaking news thats not getting enough attention. We are going to give it attention. Even as u. S. Airlines shut down service to china, look at the dow jones transportation average which includes airlines, railroads from norfolk and Kansas City Southern to Delivery Companies like fed ex and ups. It is taking the biggest hit of all the major indexes. Facing their first backtoback 3 declines in nearly four years. The transports down 3. 33 , 10,158. We are keeping an eye on that very important to see what those names are doing. We should tell you we are minutes away from a health and Human Services News Conference where the administrations response to the spread of the deadly coronavirus known as covid19 will be outlined. You can see our cameras are right there. We will take you straight to washington, d. C. When it begins because there may be some new announcements, new information. Clearly there is a direct implication between whats happening with that virus and what you see on your screen with the dow down 704 points. For the moment, fallout from the coronavirus keeps pouring in. United airlines and mastercard now saying the virus will negatively impact their financial numbers this year. Folks, very important that the stocks you own fess up when there is going to be a material effect on earnings or their numbers. Ual is down 5. 5 . Mastercard down 6 . Add this to the story about mastercard. The ceo is stepping down next year. Macys, lets get to that, says it is seeing a slowdown in sales, albeit a slight one, as the u. S. Draws fewer asian tourists. Macys stock was already down 31 year over year but for todays opening bell, it is down another near 5 at the moment. What might get the tourists back . Call it a vaccine. Moderna is popping as it releases the first batch of its Coronavirus Vaccine for human use. You can see its jumping 33 right now. This is a 24. 86 stock at the moment. U. S. Officials announced Gilead Sciences antiviral drug is now being tested on patients. The first participant is an american who was repatriated after being quarantined on that diamond princess cruise ship. We are looking at gilead down 4. 25 . Heres a name rallying with no tie to the virus. Regeneron, hitting a multiyear high, after it was up graded. Its eye treatment to make greater market share versus novartis. We are down 721 points. The breaking news we are getting is that the first confirmed case of coronavirus found in southern german state of baden, the Regional Government statement is saying the markets as we look at this have a patient who is 25 years old. He is in an isolated hospital with flulike symptoms. Lets go to alex azar in washington, d. C. , the health and Human Services secretary. Update on the actions that president Trumps Administration is taking to respond to the outbreak and keep americans safe. Im joined today by dr. Ann shooken, the Principal Deputy director of the centers for Disease Control and prevention in atlanta. Dr. Tony fauci of the National Institute of allergy and infectious disease. Dr. Robert kaplick, hhs assistant secretary for preparedness and response and dr. Stephen hahn, commissioner of food and drugs. As of this morning, we still have only 14 cases of the china coronavirus detected here in the United States. Involving travel to china or close contacts with those travelers. We have three cases among americans repatriated from wuhan and we have 40 cases among american passengers repatriated from the diamond princess in japan. I want to thank the responders and communities that have worked with hhs and the administration to provide these americans with the treatment they need. Im also grateful to the governors and other state and local leaders who have worked with us in close part nership s far. The immediate risk to the general American Public remains low, but as we have warned, that has the potential to change quickly. There is now Community Transmission in a number of countries, including outside of asia. Thats deeply concerning and Community Spread in other countries will make successful containment at our borders harder and harder. Thats why we have already been working closely with state, local and private sector partners to prepare for mitigating the viruss potential spread in the United States, because we will likely see more cases here as we have said throughout this episode. The doctor will provide more details on what that will look like, including how we would treat potential cases that arise from Community Transmission here in the United States. This preparation has been possible in part because of how aggressively President Trump has responded to this outbreak. As soon as we knew of the threat presented by this novel virus, Public Health leaders were monitoring it and beginning to prepare. The travel restrictions that the president put in place at the beginning of this month have given our country valuable time to continue to prepare, and that is precisely what those measures were designed to do. That includes working with congress. Yesterday, the white house sent a request to congress to make at least 2. 5 billion in funding available for preparedness and response. There are five major priorities within the supplemental request which i underscored this morning before the Senate Appropriations committee. First, we need to expand our surveillance work, building on an existing system we have within cdcs influenza surveillance network. Second, we will need funds to support Public Health preparedness and response for state and local governments for what could be a very large scale response. We dont know, but we must prepare for that just in case. This support complements the significant funds that these partners have received from cdc for preparedness. About twothirds of a billion dollars a year in recent years. Third and fourth, we need to support the development of therapeutics and the development of vaccines. Given the scale of this outbreak, the private sector sees a real market for both kinds of countermeasures as well as for diagnostics, but federal funding and guidance can accelerate this work. Dr. Fauci will address the current status of that work in more depth. Fifth and finally, we need funds for the purchase of personal protective equipment for these Strategic National stockpile, the topic we will address. I will conclude by noting that those scheduling conflicts prevented this briefing from including other members of the president s Coronavirus Task force, we will be providing a new update from interagency leaders soon and continue to keep doing so regularly. Earlier this afternoon on cnbc, the National Economic Council Director larry kudlow offered an update on how we see this outbreak affecting the economy. This morning, cdc provided the usual telebriefing. As will be emphasized in just a moment, the Trump Administration will continue to be aggressively transparent as the outbreak and our response evolve. We will continue keeping the American People and the media apprised of the situation as well as what everyone can do to prepare. In the meantime, i will continue to work closely with President Trump and the president s task force on our preparations to keep americans safe. With that, i will hand things over for an update from the cdc. Doctor . Liz alex azar, the head of health and Human Services, now saying quote, it is deeply concerning to see new cases outside asia. Folks, hes specifically talking about italy and iran and now we have cases in afghanistan and bahrain. There are a whole bunch of names out there including the canary islands. Let me get to edward lawrence, who was earlier in the room when the health and Human Services secretary spoke to congress, and he was asking for money, was he not . You just heard he says we need money to prepare this nation for what italy and the other parts of the country and the world are facing. Reporter and vital, one of those five things he just mentioned there, talking about the stockpiling of medical equipment that we need, he said, testifying today, theres 30 million of those respiratory masks for medical professionals. We need 100 times that for medical professionals to be able to handle what potentially could come to the United States if the coronavirus spread. He testified this morning that the u. S. , that hes very concerned about that sustained humantohuman transfer of the virus, specifically in italy and iran, and how sustained that is going forward, especially when they dont know exactly where those people got it from originally. Now, he defended in front of the committee the 2. 5 billion the administration wants. Lawmakers were thinking that possibly it should be more. In fact, senator Richard Shelby saying thats a lowball figure. Senator Chuck Schumer saying it should be more than 3 billion and none of that money diverted, 3 billion extra to try and tackle this issue. Secretary azar, though, did tell the senators that he thought this was enough. Listen. Steps that the president has taken are the most aggressive containment measures ever in history in terms of travel restrictions at our borders, funneling passengers, restricting foreigners from coming into our country if they have been in china. Travel restrictions and advisories to countries, in addition to of course the solid state and local Public Health response which actually identified all but one of the 14 cases here in the United States. Reporter making the point they are doing a good job at trying to check on where this is coming from and trying to contain it coming in. Now, of the money, 1. 2 billion will be for research and development of a vaccine. Specifically, he talked about moderna, a company that has an experimental vaccine. He didnt name it by name, but he said the u. S. Company has submitted that vaccine to the nih. Nih will then have a candidate which they have selected and over the next three months or so, work on that vaccine there. You can see their stock price actually up today because of this boost. Again, the secretary believing that there could be a vaccine approved within a year but again, thats a year and the cdc as you know, telling the americans to brace for a potential outbreak here in the United States. Back to you. Liz edward, thank you very much. Edward was just mentioning that alex azar said we have 30 million face masks, we need 300 million face masks. Here are the names. Mche cakehe cans mckesson, honeywell, these names are down. Could it be because we dont have the possibility to ramp up quickly enough . 3m down, honeywell lower as well as mckesson. As we watch the markets, we are only slightly off where we were at the top of the show. We do have the Dow Jones Industrials down 759. No real hopeful bounce that anybody was kind of hoping for, if you are bullish on these markets. The dows total losses are now at about 1700 points over just the last two days. This as the global Coronavirus Crisis instills fear into investors. We can flip it over and show where that is most prominent. That would be the tenyear treasury yield, touching an alltime low this afternoon. Tenyear yield at the moment, i can pull this up because it is important to be able to show this to you folks, we do have it at 1. 328 . I believe that earlier, Im Old School here so im using handwritten notes because i have a whole system, 1. 31 earlier so we are barely off that. This afternoon, we are looking at spanish, italian, United Kingdom and even greek tenyear yields below 1 . We know that yesterday, the entire yield curve for german bond land, especially the tenyear bund, turned negative with the tenyear at negative. 5 . Folks, that means that people would rather lose money and park it with the government than have it out there in stocks. Once considered quite a safe haven, lets look at bitcoin. It is sinking right along with equities for a second day. Bitcoin tumbling 265 points 265 bucks at the moment, at 9,361 at the moment. Just a week ago, the cryptocurrency topped 10,300. Now we are below 10,000 by a significant long shot here. Another flight to safety play, lets look at gold. The yellow metal oddly giving up yesterdays gains and its sevenyear high. This is apparent profit taking. We are down 1. 5 or 26 bucks. We are at 1,654 a troy ounce which is basically about an ounce. Gold is slumping and falling further in after the markets started to tumble and it almost looks like as byron wien said yesterday, very few places to hide at the moment. Certainly not oil. You cant find it in oil. No type of little cave you can hide in at the moment. Oil once again slumping another 3 in the aftermarket session. It closed down 2. 97 earlier. Below 50 per barrel. We are at 49. 85. Oil is extending its losses. We are also looking at brent. I want to mention that because thats the global metric that people look at. Its what trades overseas. Its down 2. 7 at 54. 74 for brent. I want to bring in our traders for the floor show. There seemed to be some hope earlier this morning and im talking at the markets open where the dow was up nearly 200 points before collapsing. What do investors do from here . Even as the safe haven plays are falling, are we hitting the floor or should investors brace for more tumultuous days ahead . The uncertainty thats out there and remains out there, is going to force investors to stay away from this market. Yes, buy on the dips but you wont be able to find a dip at any point now. When you have the cdc coming out saying that the infiltration of coronavirus in the u. S. Is highly likely, thats something thats very scary. The markets going to react to that. We are seeing that now. Right now, investors, traders, longterm investors, are very very concerned about what the Ripple Effect of this can be. We dont have enough information. Theres not enough transparency and the fact that this keeps snowballing is whats causing a lot of fear here. Anywhere that there is a safe haven, you are talking about bitcoin, gold, its not a trade at this point right now. We need to kind of wait this thing out and see where we are going to go. We are down 8 off the highs. There is some more momentum thats going to be here. This will flush out. Once we start getting some positive headlines, i dont know what those will be or when, but they are going to have to be something around about how we are containing this virus and the vaccinations that are available to the globe. Liz well, would you take this as good news, scott, im just not so sure the cdc is now saying it believes the immediate risk from coronavirus in the United States remains low. Are you buying that . We now have, lets see, 57 cases. 14 cases here in the u. S. , 40 cases here in the u. S. That were repatriated from the diamond princess cruise which of course the Parent Company is ccl, three cases of people who had come from wuhan. So the immediate risk, yes, i agree with that, but three weeks ago, the immediate risk to italy and to all these other countries that are being infected also was probably minimal, extremely, extremely low. This is hitting me personally firsthand because i have a son who is studying abroad in florence right now. Now, he happens to be in switzerland right now but he cant get back to florence. So what is he going to do right now . Hes seeing everything thats happening in europe. I dont want to be a doomsday, you know, prognosticator here, im not whatsoever, but this is real. This is absolutely real. And john said it best. Until we stop seeing this Snowball Effect of what is happening here, the market is going to be in panic mode. Volatility will stay this way. We have not seen a flushout yet. The last three major selloffs of almost 10 , vix has traded over 30. Now, it did touch 30 today and unbelievably, it touched 30 and thats when we bounced 300 points. We are selling off again here but that is certainly a level to watch for. Liz you said we have not seen a flushout just yet. We are now down 800 points for the Dow Jones Industrials, heading back down. Im not going to say session lows, we dont know, but the session low, a loss of 929 points so far. Dow jones industrials changing as we speak. Down 810. I would just like to let our viewers know once again, we have blasted out our commercial breaks because this story is too quickmoving. We are keeping an eye on every single detail including, phil, Delta Airlines, this just hitting the tape. I want our viewers to know this as we put up the stock which is losing about 5 , delta is saying that it will i believe keep ending it will not have flights between the u. S. And china tall way through until, lets see, just looking for this, april 30th. So the flights between the u. S. And china will remain suspended through april 30th. The annual low for delta is 48. We are at 51 right now, dropping about 5. 33 . A loss of about three bucks at the moment. All right. Let me get to phil. Because im wondering, yesterdays 3 , 4 loss in oil, another 3 loss right now. Are you expecting to see some hedge funds that may be long oil start to have real trouble and maybe even go under . Well, i dont know about that. But i do know that closing below 50 a barrel was very significant. This was an area that we havent traded below all year, with all the bad news out of china and everything else. So it is going to get a little bit scary here. But a lot of these hedge funds could have seen some of this coming. Its not we have already had over a 25 break from the high and this was a key area so i dont expect a big blowup. But i do start to see more concerns about the supply chain and the airlines. Im hearing from all the airlines that disturbs me because you are going to see more demand destruction, when they are not flying to china, im worried about the Ripple Effect. What other countries, because of that, are they not going to fly to . That is demand disruption in oil, demand that you dont get back, and thats why the market is so weak in oil right now. Liz again, folks, we are looking at the steepest, when we are down 810 points and we are now down 804, when we are down 810, that would be the steepest twoday point loss in history for the Dow Jones Industrials. Not quite there at the moment. Earlier we were. We are keeping an eye on it. As i said, with the nasdaq down 221 points and these markets very much in a state of flux, no commercial breaks. This is very important, we know its your money, your 401 k s, your pensions, your 529s for your college kids. We understand all thats going on. Traders. O thank our traders. We appreciate them. We may call them back ignore tht that this all comes ahead of tonights latest democratic president ial faceoff in south carolina. Could the coronavirus wind up being a gift to the left and President Trumps black swan nightmare that nobody saw coming . Lets game it with democratic strategist maryann marsh and axios political reporter steph kirk. Maryann, everybody thought five hours ago that bernie was going to be under major attack for things he said about china and cuba and communism. Now it looks like with all of this news, another c, the coronavirus could swoop in as a topic. What do you think . No question. I could see this being topic a tonight on the debate stage but thats not going to protect Bernie Sanders, who will get all kinds of incoming tonight because one week from today, Bernie Sanders could sew up the democratic nomination. He will likely build an insurmountable delegate lead and it will be nearly impossible to catch him. Thats why you are still going to see him take all the attacks tonight because if they dont disqualify him, they dont stop him tonight, it is very unlikely he wont get stopped and he will be the democratic nominee. I think thats the real game plan tonight but this topic, the coronavirus, no doubt donald trump and his administration is going to come under blistering attack because they have had two months to prepare for it and they just started today. You saw that at the press conference at the top of the hour. Liz in fact, President Trump had mocked Chuck Schumer, the senator from new york, who had said we needed much more money to fight this. When we need 300 million face masks and rampedup production of that, clearly this is becoming a much more serious issue and that comes from the Trump Administration. So i just need to know, who is best prepared up on that stage tonight to handle Something Like this, and when i think of that, i think about mike bloomberg, who has run new york city post9 11 after Rudy Giuliani stepped down as mayor. My question to you is, who up on that stage has the most gravitas for a serious situation like this . Im sure every single candidate on the stage is going to make that argument tonight that they are the ones best prepared to handle this. I think you made a good point that Michael Bloomberg of course is going to point back to his time as mayor of new york, that he knows how to deal with these kinds of situations, that he was a successful businessperson, still is a successful businessman. This is certainly going to be an important topic tonight. Another thing i will be watching is to see if, while this would be unusual, but to see if President Trump decides to try to blame this on Bernie Sanders lead in the campaign. If he ultimately ends up blaming this on Bernie Sanders or whoever the next nominee, whoever the nominee ends up being. Thats one thing we are looking for. While it would be unusual, it seems likely the president would kind of try to divert this to someone else. Liz well, the debate is tonight. We are compressed for time due to all this breaking news. Thank you both for perfect insight on this. We are really focusing not only on what happens tonight, but globally, as the spread of the coronavirus accelerates, regulators and drug makers are working feverishly to find a cure. Charlie gasparino just ran down to the set with new details on just how close a Public Private partnership out there may be to putting an end to the deadly virus and the markets pain. Charlie i cant tell you how close they are, but i can tell you the Trump Administration is working pretty hard. How do i know this. I have some sources at these biochemical companies. They are being openly courted by the Trump Administration to basically talk to them, tell them where they are in terms of the phase of their trials with the fda, what type of products they have. The whole thing is being conducted through something called a Biomedical Advance Research and Development Authority. Never knew about that authority. It does exist. They have a website. What happened was they had a website, they have been contacted drug makers like phase one, phase two. Phase one, phase two, fda approval process. What are you pointing to . Liz i want to tell the viewers because its a weird setup on the screen. Its better if you look directly at them. Charlie you want me to look at them . Liz yes. Charlie okay. In any event, what we are talking about is early stage drugs and heres what i think is going to happen. Heres what they are doing. They are saying where are you in this stage, what is the success rate, you know, do lab mice react positively to particularly on sars. I think thats what they are looking at, because sars is a variation of the coronavirus, and how much funding you need. Now, we dont know if they are going to fasttrack any of these drugs. We dont know if they will provide money. But they clearly do have a roster of early stage drugs that they are drug makers, they are talking to, they are courting, they are deciding. To say the Trump Administration isnt doing anything about this and are dragging their heels, theyre not. You have to go through an fda process. Theres no doubt about that. Liz can i just interrupt you about the fda . There is a headline right now that the fda commissioner stephen hahn is saying the outbreak will likely disrupt the medical supply chain in the United States, including potential shortages. Are we going to start seeing hoarding here of things like antibiotics . I dont know. Charlie probably, yes, some of that. I will say this. One thing i will tell you about our economy versus the chinese economy, and this is key, because we do have open flow of information because we do have a government that for the most part levels with the citizenry because we have a free and open press, information flows rapidly. Innovation flows rapidly. Thank god for that capitalist system that Bernie Sanders wants to destroy because guess what, it is whats going to that is whats going to save people and cure the coronavirus. Im telling you, the Trump Administration is now working with these early stage drug makers. They are meeting with the administration and the Development Authority so somethings going to happen at some point. They are moving in that direction. To make a hard transition here, little update. The markets are down, what are we down, 900 points . From what i understand, that is having an impact on the mets sale, the fact that they have not been able to generate decent amount of bidders on this thing. The decline in the market, the fact that hedge funds are taking it hard, as you have been talking about. Long hedge funds in oil i think you were talking about are getting crushed. Because of that, those sort of losses, there just arent enough rich people out there, unlike steve cohen already made his 15 billion. From what i understand, the market decline has been hurting the sale, hampering the sale of the mets. Liz really. Charlie from what i understand, theres no significant bidders other than cohen who has kind of dropped out and is waiting on the sidelines. The theory is this. At some point he comes back in because the mets, wilpon, the principal owners, will have to give in to his demands which will be essentially, you know, he will pay them 3 billion but he wants some role in managing the team. He also probably wants sports new york, the cable station thats affiliated with the mets. We should point out, sny is loaded with debt. Its hard for them to sell that separately so you really do need to keep it in the package with the mets, from what i understand. As we are talking right now, from what i understand, no major bidders have stepped up. The market is definitely having an impact here, believe it or not. Hedge funds arent doing too well. Looks like the only one thats out there with the cash that wants to buy them is cohen. Liz well, we will watch that. Because things will come down in price as we watch whats happening in the markets. We do need to just reset it here. We are coming up on 30 minutes after the hour which means there are only 30 minutes left of trade. Dow jones industrials at the moment down 835 points. Thats 100 points worse than when we started the program. We are looking at the s p down 91, nasdaq down 231. More importantly, perhaps, is the individual stock names out there and the fear thats paired with it. The volatility index is up 15 at the moment to 2875. A gain of about 3. 7. Flooring giant Lumber Liquidators is hitting the ground running. Lets look at the shares of the hard surface flooring company, spiking after reporting better than expected Fourth Quarter numbers, as comparable same store sales grew and profitability improved. Lumber liquidators expecting full year Revenue Growth at a low to midsingle digit rate. Material impact from the coronavirus outbreak could be felt as early as the second quarter. That said, the stock is popping, 16. 8 . But down more than 31 over the last 52 weeks. All right. No parties in sight at all any time soon for tupperware. The kitchen and household products maker plunging to new alltime lows after the company, by the way, this is a global outfit, they sell everywhere, sought to delay its annual report due to an internal accounting probe into its fuller mexico puty businebeauty busine. Mounting pressures are facing both sales and profit. Tupperware is in full meltdown mode at the moment, down 45 to just 3. 11. Flip it over to shake shack, its getting burned at this hour after posting a quarterly loss and missing on sales expectations. The stock is down 14. 33 . The hamburger chain said it faced food and labor headwinds and guest traffic falling more than 5 last quarter, before the coronavirus. Shake shack confirming that it does expect same store sales to fall by a low single digit percentage this year. While falling today, shake shack is up more than 40 over the last 52 weeks. Its a 63 stock at the moment. If you wanted to buy it before, 14 cheaper right now. Just saying. As we talk about the global spread of the coronavirus, italy its is the newest at the center when it comes to coronavirus cases in europe. The outbreak has now spread across the continent, including parts of spain and the canary islands. So the ibex, the spanish stock market, the stock exchange, taking a hit today, falling about 2. 5 . This is an intraday picture. Of course, they are on european time so they closed about seven hours ago. You can see the big fall at the end of market session. Lets talk about the canary islands. Dozens of tourists are on lockdown in a luxury hotel on the Spanish Island of tenerife as a part of italian guests tested positive for coronavirus. The place is surrounded by police. People are not allowed to leave. They are being asked to stay in their rooms. Just last week, the Public Health researcher at the council on Foreign Relations had insisted that the only way to contain the coronavirus is doing exactly what that hotel is doing. Its the ageold Silver Bullet, quarantine. He joins us now and we appreciate you being here, sir. With new cases in afghanistan, bahrain, the canary islands, off the coast of morocco, we are wondering if quarantine is the Silver Bullet, isnt that Silver Bullet already out of the gun . Well, actually, the Public Health experts are still debating whether strict quarantine measures will indeed be effective in terms of stopping the threat of the virus. The past records suggested its not conclusive. In fact, if you look at the outbreak, the strict quarantine containment measures were in place actually before the socalled virus reproduction number dropped already below 1. That means the virus already started to lose its momentum before liz let me interrupt you, sir. In china, it has. But in italy, we now have six deaths and we understand that actually, its ten now, it moved to ten deaths between this morning when i wrote down six and now, what we are hearing is ten. We have two in tuscany, one in sicily. We are seeing a very alarming spread at the moment and i need to ask for our viewers because they are asking us at the claman countdown can this virus live on surfaces . We are hearing reports through chinas version of twitter that the central bank of china is burning and sanitizing Paper Currency that is coming out of wuhan banks, retailers, public transportation, because they are worried it lives on the actual paper and by the way, we are down 906 points for the dow. Go ahead, sir. Yeah, absolutely, this shows how little we know about the virus. Theres still a lot of unknowns. Initially we were told the virus cannot survive outside the human body but now we are told that the virus can stay on the surface of like bank notes. Liz really . This is indeed a surprise. Liz do you believe that . Can it live on surfaces whether its a desk or money . Well, it is possible now that the chinese government, the banks, seems to be burning those bank notes and replaced with new ones. Liz well, now i want to know who is under the most pressure here and do you bloelieve the c when the health and Human Services team are saying the risk here in the United States is very low . We just want your independent opinion on that. Well, i think that if you lo at all those official reported cases, almost all of them still are imported ones so that seems to suggest that this has not caused Sustainable Community outbreak in this country. Liz thank you so much for your expe expertise. We do appreciate it, sir. He works for the council on Foreign Relations as the true expert on quarantining. Sir, we appreciate it. We should let everybody know at the very moment that alex azar is starting to take questions at health and Human Services at this News Conference. Lets listen in for just a moment. For instance, abroad, this is spreading quite rapidly. In the United States, thanks to the president and this teams aggressive containment efforts, this disease is contained. We are now two weeks with no additional u. S. Based cases. 14 cases on february 11th, 14 cases today. That is remarkable level of containment here in the United States. The only additional cases we have are ones we imported as part of our humanitarian repatriation efforts. Then we tried to be very transparent with the American Public. We have from day one said we cant hermetically seal off the United States. I stood at this podium, i stood at the White House Press briefing when we announced our initial travel restrictions, and we have always said we expect to see more cases. We dont want people surprised if they see more cases here in the United States. Thats an important part of transparency. People shouldnt panic when they see new cases. They should know their government predicted we would have them and we have plans in place and then that gets to what the doctor was talking about this morning, which is just previewing for the American People that as we see additional cases, we actually have pools, we may not yet have a vaccine or therapeutic, we have Public Health tools of mitigation that we can and will use. Its important for people to know we arent helpless, we have tools. We have actually a defined playbook for taking steps to help if we do see Community Spread, how broad a Community Spread we do not know. It is very dangerous to make predictions with a virus, especially a novel virus, but we have tools to deal with that that are reasonable, titrated and dont interfere with the economy or individuals lives necessarily. So all of this is part of the same message which is this is a very serious Public Health condition worldwide. We are taking this incredibly seriously here in the United States. We are doing the most aggressive containment efforts in modern history to prevent further spread in the United States. We are going to continue taking those measures. But we are realistic that we will see more cases and as we see more cases, we might have to take Community Mitigation efforts. What will those look like . We are being transparent about those also. So its all to make sure the American Public go on this journey educating with us. We are keeping people fully informed of what will happen almost so that people could predict what we would do and what we would say in advance because we have been so transparent about what our playbook is and how we think about these issues. Liz all right. I just want to let our viewers know we have just gone below dow 27,000 at this very moment. We are now down 956 points. We were just touching the low here, down about 26,999. We are just slightly above it at the moment. More importantly than the dow, perhaps, is the nasdaq. Not so much the point loshs whih is pretty epic. We have to make this point. It is down 8 plus since its recent and alltime record high which was actually just last wednesday. Two more Percentage Points down and we do have a correction, which is 10 off the recent highs. At the moment it is a very difficult picture to lo ok at fr the nasdaq. If you are a bull, we like our short seller viewers, too. We know that. We know some of you are feeling very good about this which reminds me, maybe we should look at tesla at the moment. Tesla stock down 4. 7 or 39 bucks. Thats not that bad considering teslas exposure to china. Of course, it has its shanghai Assembly Line where its churning out cars there. Last check on tesla, 796 points 796, down 4. 5 or 37. I do want to get to this story unrelated at the moment to the coronavirus. This particular slice of it. Amazon, can we pull that up . Amazon is firing off a new cannon ball aimed directly at the heart of the entire supermarket industry. The whole foods owner opening a new cashless grocery version of its go stores in its home base of seattle. Its open today. Amazon is down about 2 but the new store has four times the space of its normal cashless go stores but its still smaller than rivals like kroger. No word on whether more amazon go Grocery Stores will be coming to other locations. Amazon obviously does have exposure elsewhere when it comes to the coronavirus because a lot of its products come through or at least the Assembly Lines touch china, and those shock waves are continuing to ripple through all of big tech. Deirdre bolton, i want to get to you on the floor of the new york stock exchange. I was checking facebook, microsoft, intel, and these names are all in correction territory right now. What else do you have for us . Deirdre they certainly are, liz. I just wanted to highlight as well the bigger groups that are weighing on the markets. You covered these amazing point spreads, point moves, but its energy, industrials, and materials. These are the weakest parts of the market right now. Of course, these are the areas where people are betting on Global Economic expansion. These are the ones that we usually show enthusiasm for. The fact they are the three biggest weights just shows you to what extent the fear factor is present in the markets. You were talking about treasury yields as well. We are seeing records there. 1. 31 , that is an alltime level. So this fear factor, very much present. Just to leave you quickly with one standout stock which is not a surprise, its all related to the coronavirus, but if you look at moderna, mrna, that is the ticker, this is a company that has been sending and has already sent actually a trial vaccine which will be meant to treat the coronavirus, to 20 to 25 humans to begin a trial in april. We will not know if it works until july or august. But if this company is able to pull off developing this vaccine within a threemonth time of actually getting the sequence of the virus which was in january, that will be an alltime record. You probably remember with the sars epidemic, that 2002 virus, it took about 20 months to get an appropriate vaccine. I wanted to show you one stock at least that is moving higher as the rest of the market heads south. Back to you. Liz i do just want to point out something about nike, if we can show nike at the moment. It is down okay. Hold on. Just checking it. Down about 3 . It is stumbling but under armour is tumbling as the coronavirus appears to be triggering a new cancel culture. Shares are getting tripped up after the Associated Press reported that organizers of the 2020 Olympic Games may cancel the summer games set to take place in tokyo. The 2020 games potentially joining a growing list of high profile cancellations due to the rapidly spreading pathogen. The tokyo marathon, the mobile world congress, a number of events, Milan Fashion Week and seouls version of the biannual Fashion Event all falling victim to the coronavirus cancellation storm. Connell mcshane, july 24th seems like a long ways away. Im wondering, you know, with this years olympics, would they be d. O. A. At this point . Connell if it had to happen tomorrow, maybe. It doesnt, to your point. We have a long way to go. Anybodys guess as to where we are when the final decision has to be made. We talked about this yesterday, we will talk about it again today, the fear of those types of things is playing into the markets and to peoples reaction to it more than the virus itself, how many people have it, how many people have died and all the rest. So the fear becomes the reality to some extent, at least in terms of the economic reaction. We will talk about all that at the top of the hour, when melissa joins me and deirdre rejoins us and whathave you, try to give you some perspective on how the markets are kind of closing it out today. It certainly could be the worst twoday point drop ever. Percentagewise we have been here before. I will point out, you talked about this earlier, theres a debate tonight in the president ial race. We have the former mayor of philadelphia, michael nutter, big surrogate for mike bloomberg, we will talk to him about that and maybe how this all plays into of course a lot of this will be up to the moderators, but how this plays into that with the backdrop of the market decline and the coronavirus now playing into the president ial politics. Liz im wondering, connell, do you get the sense that tonight, what was supposed to be a massive pileon on to Bernie Sanders, and they were going to set this bonfire and come right back at him and now the conversation shifts. Connell maybe. Liz we just talked about this, that the conversation shifts to who is best prepared to deal with bringing back the markets, bringing back stability and eliminating all of this fear, and they may all turn around and attack the administration for whatever slights they perceive were seen when it comes to dealing with this coronavirus. Connell maybe. Sometimes we get in the bubble with this kind of thing when you are covering the markets on a tick by tick basis and the political, not to say it wont come up, i think it will, but the other issues that are happening in the politics of the day i think still, even if they start with that, they are going to come back to what they need to do which is the horse race politics of having to go after Bernie Sanders, the leader. So short answer, i dont know. But like you, im interested to see if it does change the dynamic. It should a little bit, you would think. Liz 14 minutes before the closing bell rings, this is our territory. Connell, thank you so much. Closing bell, as i said, 14 minutes away. Dow jones industrials, look at this, now we are down 783 points. At the lows we were down 950. What has the most exposure when it comes to american names and china . Well, it would be the semiconductor industry. We told you that before. They get most of their revenue from china. Lets talk about nvidia. The chip maker cut to a neutral, citing a growing risk to the Global Semiconductor industry due to the deadly virus outbreak. Its cutting its price target to 230. Right now its at 263, by the way. Cutting to 230, before it was 235 so they are still below that, saying investors may be underestimating the risk of the issues impacting Electronics End market demand. Lets bring in our traders and our floor show. We are joined by scott, phil and tim. Scott, give me your thoughts, this is the first time in 47 minutes of the final hour of trade that we are hearing from you. You give us your sense of what flows you are seeing, is anybody coming in and buying anything on the cheap . You got to be careful about doing that as of yet because as we learned yesterday, i think this is going to be here to stay for awhile. Maybe a second quarter, Third Quarter thing. The smartest doctor i have heard talk said you know what, next year we will have to worry about the cold, worry about the flu and covid19. Until we get that into the regular perspective, we are going to have people that overreact and get nervous about it. Thats what governments are doing. When governments do that, the stocks that are priced for perfection are going to get sold. Thats what we are seeing here. We have a slowdown in economic activity, gdps are going to definitely come down and these stocks that are priced for perfection are going to react to that, but we will get through this. This is not an end of the world thing. Its a flu that is much more contagious. Once we finally get our emotions out of this, then investors can get back in the water. Right now its still tooemotive. Liz i want to call an audible for the moment. Air canada, im bringing this up because air canada is now saying with 12 minutes before the closing bell rings, that it too, like delta earlier this hour, is extending the suspension of its flights between canada and beijing and shanghai, also like delta, until april. April 10th specifically. I do want to just mention about air canada, whats interesting here, scott, i will bring in phil and tim to the conversation, too, is that this stock is down 6 , now its price to earnings ratio is just 9. Phil, that looks cheap, does it not . I think it does. I think it is an overreaction, but make no mistake about it, when you cancel those kind of flights, and the peripheral economic effect, it definitely is felt by these stocks. We are seeing it in the price of jet fuel, for example, today which along with crude oil, is absolutely getting hammered today. The airline and transportation stocks, they are in big trouble. To be honest with you, the comments from the cdc today didnt make things better. We heard from the Trump Administration saying hey, dont worry, its contained here. You listen to the cdc, they are telling you a different story, that its only a matter of time, you know, not if but when we will have a pandemic. How do you buy stuff when you get that kind of talk . Now, you know me. I believe scott is absolutely right. We are going to get through this. This is not the Zombie Apocalypse but when we start hearing those kind of comments at the end of the day after a bad day yesterday, its hard to get that momentum here. Liz okay. Tim, we have u. S. Airlines up here. American, southwest, ual, delta and jetblue. They are all down anywhere from 5 to look at american and southwest, down 8 . But again, i want our viewers to understand that the price to earnings ratio which is the best way, really, if you want to quickly eyeball on the back of an envelope to see if now something is cheap, Delta Airlines price to earnings ratio is at just about 6. 9. When historic numbers that we have seen lately are 19 for the s p, this will in retrospect look like a great buying opportunity, would it not . It probably will. Clearly, anything exposed to Global Travel is getting hit very very hard right now. Even American Express and the Financial Sector is very exposed to Global Travel, both on the corporate level and the individual level and thats probably one of the most hardest hit financials. But i will tell you that there are people that are going to make the case that we are very, very close to a trading buying opportunity right here. Yesterday, down volume was 93 of total volume. I calculated a few minutes ago and it was at about 89 today. It might hit 90 by the time the bell rings. When you have two consecutive 90 down volume days, there are a lot of technicians that view that as an extremely oversold situation and a buying opportunity. The only caveat i would throw in there, it usually doesnt happen just a week after we have made alltime highs. Liz eight minutes, folks, eight minutes to go before the closing bell rings. Dow jones industrials down 886 points. If we closed right here, it would be the biggest twoday point loss for the dow in history. Lets talk about this. The red storm rising in full display. We do have the nasdaq tanking at the moment and just as the nasdaq drops, we do have treasuries moving higher. I want to give you the tenyoer yie year yield, 1. 32 . Earlier we were at 1. 31 . With all this red on the screen, can we bring in a bucking the trend name here . It would be hp ink, surging to the top of the s p as it rages against xeroxs takeover bid. The computer and printer makers 15 billion buyback plan, plus a solid profit forecast, so nice to see some green on the screen here besides my dress, right . Helping to create a firewall against xeroxs recently rejected 24 a share buyout which now looks a little bit skinny here because hewlettpackard is at 23. 28. But xerox is not looking too shabby, either. It too is among the s p winners right now, up 4. 25 . Seven minutes. Seven minutes to go left in trading. Lets bring in the cofounder at Lm Capital Group in san diego and steve ott. Steve, give me your gut reaction to all that is happening right now with the markets and whether the traders and i that just spoke are either wrong or right on retrospect and boy, does this look like a good buying opportunity or too dangerous . I think the first thing you got to remember is this correction was overdue. We had a 17 run without a pullback. The last 16 times we have had Something Like that, we have had a 10 correction. Yesterday we put a point in. We are advising our clients to leg in here. Its very hard to call it shortterm bottom. This is a correction that was well overdue. The coronavirus is a good excuse for one and its scary, we dont know really how its going to play out, but at the end of the day, the Global Economy will bounce back from this. Its at worst a shortterm hit, and stocks are discounting a longterm series of cash flows. When you buy a stock, you buy a position in a company that is growing out into infinity. I think the chip stocks are very viable. We will sell a lot more chips three years from now than we will sell today. I dont know about next quarter, maybe that really is going to be weaker. But by the time we get there, people will begin looking through to a much rosier scenario on the back half of the year and its very hard to call when that psychology changes. So we think a leg in here would put a point in, every 5 drop would put another point in. Liz thats the definition i was going to ask you of legging in. You have about 4. 5 billion in assets i am buying treasuries. Long treasurys. It is just a fight to quality. You know buying stocks today is like trying to to catch a fallig knife. I agree long term it will look good but in the short term who knows how far this is going to go. So im just hedging positions, buying very safe paper and looking for yield and spreads have widened in the last few days. There are some opportunities in the financials, longer corporates, a lot of very good opportunities in the very strong emerging market products. Liz were down about 895 points. The dow barely above 27,000 at 27,059. Steve what are you buying today . As i said, liz, we would focus more on the cyclical side of the market. These stocks already corrected more than 10 . The reason the overall market is not down, there are a lot of bond proxies in the market. Bonds are rallying hard. The bond proxies are doing okay. The overall market doesnt look as bad as it actually is. The chip names, technology stocks, the industrials, even the financials, obviously the energy stocks, the energy is a tougher call i think here because of long term picture is not nearly as good in some other spaces. But a lot of these stocks are already down 10 to 15 . Liz want to know we pull up video what is happening in spain. Luis, i dont know if you heard. Nighttime there, five or six hours ahead. Canary islands off the coast of morocco, have an entire hotel a luxury hotel is under lockdown. They dont want to use the q word. They are not saying quarantine at the moment. The entire hotel is under lockdown with police surrounding it. Drip, drip, of yet a new island or country, does that worsen the situation . As were down 901 points with exactly three minutes left before the closing bell rings, do you say to yourself, i have a shopping list, how much further do we have to go down before you jump in. The markets are open many any stay for many hours. You dont have to be in them expects news youre not getting. Investors hate surprises. It is safe to stay right now in very safe bonds. Take that pressure off your portfolios and i agree, long term, there are great buying opportunities. You dont have to jump into them today. Liz okay. I want to quickly dip into the floor of the new york stock exchange. Deirdre, what are traders saying, do we go lower with two minutes left of trading . Last few minutes, liz. The name of the game today is selling. That is what were seeing this kind of pressure ever since this morning we took a tumble. You remember this the dow was up as much as 180 points earlier. Were at 860, approximately 860 lower. You know groups putting pressure on the overall markets. They show fear about potential Global Economic slow down. So materials, industrials, energy, these are still the groups that are weighing the most heavily. Liz, were seeing fear come in, showing up in the bond market. Your guest talking about this. 10year treasury, 1. 31 . Never seen before at that level. Liz, back to you. Liz 90 seconds before the closing bell rings. If we close here that would be the largest twoday drop for the Dow Jones Industrials in history. Steve, when the things calm down what is the first name you buy . I buy micron, applied materials. These are chip stocks getting hammered here. We sell a lot more of this stuff threeyears from now than we are today. Liz boeing are two names you like, mu, micron is a name you feel. Chips are in about everything we will continue to use, coronavirus or not. Increasing share this is part of the whole third Industrial Revolution we talked about on this show, liz. It is all happening. So it is all good, you know . This is an overdue correction. It is scary at the moment. All the closet bears are being dragged out of the closet now to explain why this is happening but the end of the day market will recover. The back half of the year will be better, not worse. Liz i will end on that from you, steve. I wish i could end on a better number for our viewers but if youre listening on xm 113 say it out loud, loss of 850 points knorr the Dow Jones Industrials. The nasdaq negative for the year down 251 points. [closing bell rings] s p, the broader market, that is 500 stocks, many of you own, down 96 points. That will do it for another very tough session of the claman countdown. Connell very tough indeed. The dow losing almost 1900 points almost two days. Major averages extending steep losses two days in a row. New warnings from Health Officials about the spread of coronavirus right here in the United States. With that the dow is down878 at the close. Pointwise, the worst percentage drop, but worst drop since february of last year. A little perspective. Im connell mcshane. Melissa im melissa francis. This is after the bell. The s p 500, nasdaq sinking down