Transcripts For FBC The Claman Countdown 20240713

New notice, saying that the fed will use all its tools to support the american economy. The s p, yeah, it came up off the floor, but it is still down 64 points and the nasdac is still losing 126, todays selling follows the worst single day point loss in history, for all three indices. What will happen in this final hour of trade . It is also the final trading day of february, so what were going to do is keep you rock steady and solid with everything you need to know. Since the thundering bullherd got spooked by the threat of the coronavirus, total equity losses so far coming into today topped 4 trillion. All 11 sectors in the s p right now are in correction meaning they are off 10 or more since their recent highs. Joining the dow, nasdac and s p, as markets fall into correction territory, and are staying there folks the past six sections mark the fastestever decline from record highs all the way down to correction for the s p and the nasdac. The outbreak making its way now into sub sanctuary hair an african as nigeria confirmed an italian has tested positive for the deadly virus as google and this just broke in the last hour or two, google announces that an employee in zurich has contracted the coronavirus, so where is the World Health Organization in all of this . Also raising its global threat level to its highest status but is not yet ready to call it a pandemic. Were bringing in team fox business coverage our floor show traders at the New York Stock Exchange, christina partsinevelos, live at the nasdac, Shanghai Bureau chief russel flanner y, was eying a flight tomorrow on United Airlines what does he predict for chinas economy and billionaire class and as apple stock faces a big cut weekto date, susan li with her exclusive one on one with apple ceo tim cook on how the coronavirus is impacting the tech titan. To jay powell. We could argue we were going to make a run for the highs of the session not happening check the dow down 766 points. Jay powell the head of the Federal Reserve, stressing that the fundamentals of the u. S. Economy do remain strong; however, he said that the fed is keeping a cut on the table, as the virus risks the markets they are monitoring the virus. He also went on to say that the Federal Reserve and this is the quote, will use tools and act as appropriately needed to support the economy. He also said, and i think this may be why the markets cant quite make a run for it, coronavirus poses evolving risks to economic activity. So, check here with the s p, were now back down about 73 points, the nasdac losing 154 with 57 minutes to go before the closing bell rings. In the wake of the Federal Reserve chair powells statement just about a half an hour ago the markets are now pricing in, check it on your screen, folks, a 100 chance of not just any rate cut, a 50 basis point rate cut at the feds next meeting which is march 17 and the announcement will be the 18th. Looking further out well lets see. The markets are seeing now a better than 75 chance of a further quarter point cut for the april meeting which i believe is the 28th and the 29th , and then of course we know that theres a june meeting and we do believe that Goldman Sachs says we will see a total of 75 basis points total by june lets break down the Coronavirus Impact here, on your money. Oil is getting smacked again sinking to the lowest in more than a year. West texas intermediate down 16 for this week in the after market session right now its down 4 1 3 and were at 45. 03 per barrel for crude oil. Natural gas has been something people have been ignoring, we are not going to ignore it. It is in lockstep tumbling to a near four year low, now at 1. 69 per million british thermal unit s so weird seeing lock here down look at the after market plummet here. That i would say is significant its down 3. 5 . Were looking for safe havens, aside from the volatility index which is up 21 the only safe haven right now is the japanese yen which surged to a seven week high against the u. S. Dollar which is awfully interesting considering japan is very concerned about some of the cases there. Lets look at gold. Even gold as it has become the asset of choice in normal times to generate cash during the stock selloff of this magnitude, what happened . We did see a significant runup over the past month to more than 1,600 an ounce, right now we lost 59 today were at 1,583 for a ounce, the wannabe safe haven bitcoin is falling to its lowest level, lost another 98 at 8,615 per bitcoin, remember it really got very close to 10,000. Let me look at mcdonalds, dow component a lot of you own it, its lost 11 over the past month , of course the coronavirus plays into this , it was forcing mcdonalds to shut many stores in china, that stock losing 4. 5 right now in the final hour of trade, good for about a 9 clip to 190. 59. The cruise lines have gotten torched folks from day one of the awareness of the coronavirus , norwegian cruise lines, finally though a float just a bit today up about 4 despite Deutsche Bank cutting the stock to a whole so the cruise line has lost 33 this month, its trying to scratch back at least moment by moment some of that,nclh is at 36. 49, lets bring up mylan, well it is plunging after the drugmaker said that it expects the coronavirus outbreak to impact its financial results, meaning its earnings, and warned of drug shortages if the virus continues to spread. Mylan down 7 known for its epipen but it is in a lot of drugs that a lot of people use on a monthly basis. Right now check the Dow Jones Industrial down 772 points again i would remind you lower the session with a loss of 1,085 that was well earlier in this morning, right . But it has been such a wild ride for just specifically the Dow Jones Industrials alone this week. What we wanted to do was put up the calendar. Look at these point drops throughout the week. Monday, 1,031 points, tuesday 879 points cut, wednesday people thought well maybe were bottom ing out only a loss of 123 , yesterday the largest point drop in history for the dow, a loss of 1,190. Now weve got as i said, fed chair Jerome Powell promising to appropriately use tools to support the economy but will monetary easing help stem the publics fear of going out id . I dont think if the borrowing becomes cheaper and getting loans becomes cheaper does that make any difference whether you go into a crowded theatre . How would a fed rate cut help the overall economy if the Coronavirus Crisis worsens . Bring in our traders right now, john gagliardi, give me your thoughts . Ive been talking to clients and i have clients sitting in cash for years, and theyve all been saying the same thing, if there was just a pullback, if we could just get a pullback i could get interested in markets again and here we are. This is it so i have to ask all my clients, whats your number . Whats the number that gets you in . Is it 2,900 which we saw today . Is it 28, 27, at what point do you say the market has gone low enough while it has to begin to participate and here is the answer. Theres no right answer. The right answer is whats right for you as an investor and of course, theres nothing wrong. You could buy some at 29, 28, 27 , the only thing we should be keeping a close eye on, the low of Christmas Eve 2018. Liz i remember. That is our trend line, and if we break that low, especially if we should close a month at that low, that be a huge danger post. Liz hold on one second. If we can get a threeyear up that be helpful because it would encompass what we saw in december of 2018, which was another massive fearful selloff , and so therefore as we look for that opportunity, chris robinson, i have to tell you, im really surprised that we havent seen what hermes, who sat here on my set three days ago and said leg in, a point here, a point there, just exactly what john said. Why are people so unbelievably fearful when we see such a big selloff and much cheaper name . Well thats human nature right . You always want to wait and see and its always easier to do nothing and wait. Thats why we have the markets move the way they did. You look back at that low on christmas of 2018, that was interesting. That was a 0. 20 correction between halloween and christmas but that took two months. Weve had a 16 correction but its taken six days, so thats the thing that i think is the rate of decline has been really shocking, ive been in the business since 88, 89 and i remember coming into it after 87 , so this has been a very volatile move down, and i think it is a wait and see , and so but i do agree, its a good time to start maybe dollar cost averaging in. Youre never going to buy the low but you say okay ive got money ive been saving and ill buy some this week, and buy some next week and see where you are six months from now. Liz okay im looking at volatility. For the year so were just talking the first two months of the year, it has spiked 244 . Why not capitalize on Something Like that, john, and do your investors who you have on the phone saying wait, wait, wait, do they have a Shopping List what are they most excited to buy as i look at the 10 year yield, an alltime low on the 10 year yield and the same with a 30 year yield. You are correct, liz and they should have their Shopping List. You should always, these are the moments where you brush up on that watch list, and all of your fundamentally sound companies, dont take this advantage to try to buy the lowest quality things you could find. Buy the highest quality. Indexing, the s p 500 is never going away. The major indexes are not going away. The names may change, but those indexes will always be there. The question is how inexpensive can you wait to buy them and youre never going to get it perfect and its okay to leg in over time. Liz good to see you guys hang in there. Again, 49 minutes before as were calling it hell week because it has been very difficult for the bulls and many investors, were here for you. I will say though if you had to pick one or two sectors that have absolutely gotten singed, its the Airline Sector scrambl ing to deal with the fall out from the coronavirus which keeps of course being the gift that keeps on giving so its been very tough, domestic ally alaska air and jet blue say they are waving fees as they let customers change tickets through the middle of march, in europe we have British Airways and Spanish Airline iag saying theyve reduced capacity on italian routes for march. I was looking at the numbers for italy. We do have i tall yankees confirmations, 888 people sickened, yesterday it was 650 so its really kind of spreading definitely and 21 confirmed dead , for march were looking at british budget carrier easy jet saying it would cancel flights and cut costs. I know Hawaiian Airlines has said they are not going to be flying to certain areas of japan , United Airlines today announcing Additional Service cuts to asia, as the coronavirus engulfs the globe. Among the routes affected for those traveling from the u. S. Are ual flights to tokyos airport, so osaka, this on top of flights already suspended so guess who was thinking of a flight out to china tomorrow on united . The Shanghai Bureau chief for ford, russel flanner y. You call shanghai your home. Whats happening about tomorrow are you going or not . No. Too much uncertainty staying put happy to be here in new york for a few days, lots to take in. My thinking about the bigger uncertainties in the market is that initially, we saw coronavirus in china having the biggest impact on the market now what were seeing is a lot of uncertainties in other parts of the globe weighing on the market. Liz well south korea, 2,300 people are sickened there i would say its a pretty significant number, iran 210 people dead, we know that illinois, the good news, america is doing something right. Both patients who had it in illinois have recovered and the governor, of course, running the state of illinois, is saying that they have successfully contained it there. So thats good news, but what are you hearing from all of your friends and family in china. Well the situation in china is much better in terms of what we dont know. A couple weeks ago we didnt know when people be going back to work, would they be going back to work. We didnt know would the case number come down, would the cases stay concentrated in the wuhan area and what we can say today is there isnt too much reporting of new cases anywhere outside of that most concentrated area. Liz my question to you because you understand the chinese way of thinking, xijinping with a face mask Walking Around speaking to people, he was furious with certain officials in wuhan who did not quarantine the entire area quickly enough, how do you square the fact that china put out all of this news saying were shutting down cities and were making sure nobody leaves, and yet theyre trying to shove people back to work. Susan li will join us in a minute. Apple is reopening many store doors but foxconn is offering people more than 700 per worker a bonus just to return to work. Which part are we supposed to believe china saying were tough on this or hey, everybody get back to work it looks better for our economy . I think from an investor point of view youre looking for value in the market and youve got to base that on something, which you can base that on for china, which suddenly looks relatively less uncertain than some of these other places, that the people are going back to work, companies are reopening, the big uncertainties at this point are will there be some spread that we cant understand after people get back and also, when we look at the Global People now what will the ill pact on be chinas exports but chaired to a couple weeks ago, i think companies are more comfortable with where they are, how they are going to rebuild and i cant say that china is the safe haven, but if we talk about in the world ocean of uncertainty and the world right now, there is certainly a lot more that we know that we didnt know about a couple weeks ago. Liz i think with the stock market people are worried about the ding to the entire economy whether its in china, europe or the United States and therefore they translate that directly to the stocks that they own. You are preparing the Forbes Annual edition of chinas billionaires. We know that in the United States, many of our billionaires whether its jeff bezos or bill gates or Warren Buffett theyve taken on paper definitely major hits to their net worth. What are you seeing with the chinese billionaires . Yeah, definitely china has been a great place to be for tracking the worlds wealthiest people, and ive been lucky to be doing that since 2003. Liz some of the names . Tencent, all these fortunes have trended down, in the last few days amid coronavirus, but at the same time we still have a lot of new faces in china, so chinas the worlds second biggest economy, second biggest home to billionaires in the world, and assuming as many them are saying this works itself out over the next few months it seems to me that china will rebound. Liz well chinas down weekto date 3. 6 , alibaba, and if you were to look at amazon for example, for the week, amazon is definitely getting hurt more. Its down about 11. 7 , so do you see some opportunities and i know you dont pick stocks youre a journalist, but do you see that there is some stabilization there, and what would you tell our viewers about what you expect to find when you get back to shanghai . I expect to find people telling me there are more people out on the streets, some stores are starting to reopen that were closed over the last month and i expect businesses to be focused on policy, because as much as were worried about communism and the kind of command economy that represents part of chinas economy, the fact is they can get a lot done when they want to do something. My expectation is just going to be some good stimulus. There will be other measures to benefit businesses and growth will recover in the second half. Liz russel flanner y, bureau chief in shanghai for Forbes Magazine looking forward to the chinese billionaire edition but maybe the coffee may have to change just a bit. Bring in the edits at the moment because as the markets plunge the Major Trading floors are now making preparations just in case the coronavirus outbreak does reach pandemic status which it has not yet but we spoke to the cme Group Chairman and ceo terry duff y asked him about that on the claman countdown and what his organization is working on. We got a lot of contingency plans put in place here for the markets to continue to operate here in chicago so were very well prepared. We wish everybody well. Liz Charlie Gasparino has been looking at plans of other exchanges what can you tell us i guess youre starting . Charlie as i reported earlier today the New York Stock Exchange is beginning to prepare for the possibility that the floor might not be able to open. Now as you know the New York Stock Exchange has an Automated System as well, its a mixture of both humans and an automated trading system, computerized Training System so theyre planning for a possibility that the floor traders, the brokers, the designated Market Makers cant make it in because they have to stay home, so they are preparing for that from what i understand they will have some test runoff that in a couple days, stay tuned on that. Major wall street firms are taking steps from what we understand weve been surveying them, my producer and i have been serving the big firms and they are taking steps to restrict travel amid the virus panic. They are restricting obviously travel to china, parts of italy and parts of asia. They are also asking employees to selfquarantine if they didnt in these certain areas where the virus has come about, and as the virus spreads, you are seeing emails from the big firms like jpmorgan to employees , be prepared to work from home, test your systems out , make sure you are, your computer works and you can get into the Company System to trade, so its precautions, to me it sounds somewhat off the top given the fact given there are 300 Million People in the United States and theres i think 60 cases, so most of them are not life threatening right now in the u. S. , so but thats what they are doing. We should point out, liz, yesterday i mentioned that be prepared for a fed emergency rate cut. As you know, Jerome Powell just came out and said the fed is ready to go when it has to, to add liquidity to the system, if the markets get even more shakey than they are already, i would say this is going to be a big weekend for news, South Carolina democratic primary is going on, super tuesday is tuesday, but you know, stay tuned sunday night. Look at the futures and see what the fed is doing, if theres any emergency measures, i think sunday is a good time to check the Google Finance to figure out or i would say do fox business. Com to see whats going on, but you know, liz, we said friday be a test. The market was down almost 1,000 points today, it came back, you dont want to go into the weekend heavy, when theres a lack of information, but you know, im talking to a lot of wall street guys and maybe they are touting their book, they say this thing is well overdone. Liz yeah. Charlie what do i know im just a simple country reporter. Liz mick mulvaney, the president s chief of staff said it was a hoax of the day. Charlie okay let me say one thing about mick mulvaney, and who i really like personally, liz. Liz sure. Charlie he is not doing himself any favors and anybody any favor s by blaming this on the media, and ill tell you why these algorithms that are trading these stocks, the investors that are unloading going into the weekend, they dont care what rachel maddow, what cnn, and what trump derives as the Fake News Media cares. Liz or what were saying charlie. I love these tweets were getting about you and i. Charlie yes, moving the market. Liz oh, liz and charlie are talking, meats are you kidding me . Charlie i got like 10 of those yesterday but here is the thing. The bottom line is this. Were obviously just reporting whats going on. Markets are not, are trading down and volatile right now, and were going back down again. Liz let me show you what im holding. Charlie let me make this point the reason why theyre doing that, liz the reason why is because theres a lack of real information about that and the sort of absence and the vacuum of that, the default position is to sell and until the trump adminitration understands that they are doing a good job in so many different ways. They should not blow the information game and i think mick should rethink what hes doing. Good guy, a guy i really like, and respect, but man hes way off on this one. Liz youve got several thousand people dead and if you start see have in other countries, im sorry, Charlie Gasparino, liz, and carl are not doing that. Charlie the reason why the news media, the professional traders are smart people. Algorithms tradeoff real stuff. They dont, its impossible for them to be worried into this by the Washington Post and the new york times. Liz charlie thanks, i did just want to show this. I pulled this out of one of the green rooms at fox. Charlie by the way those things go for a lot of money these days liz i know its a huge bottle of hand sanitizer, its the fox friends green room. Charlie you betterhorde that, liz. Liz let me talk about apple stock. I do have to tell you guys this stock is definitely on sale because were seeing it 14 cheaper, weektodate. It is one of the biggest losers on a very major losing session for the dow, market apparently not sharing ceo tim cooks optimism about china getting the coronavirus under control, let us get to susan li who land ed a one on one exclusive interview with ceo tim kukin his home state of alabama for the launch of the apple supported educational program, ed farm, and hes preparing young people for jobs of the future but you also got to talk to him about the fact that hes really reopening stores isnt that correct . Thats right and china is ramping up so that was something in our conversation, in terms of the china business, stores reopening, and also production and suppliers coming back online as well and he does not sound worried about the coronavirus or the stock selldown that were seeing in fact he says things havent changed from week to week, so i think thats pretty much echoed for sf the investors that you talked to and talked about with Charlie Gasparino but we got exclusive access trailing apple ceo tim cook across birmingham, alabama yesterday, launched the initiative via education farm which could provide coding opportunities for the under served communities across the city, and also homecoming for tim cook as he grew up in the state of alabama, went to auburn and i can tell you, liz, everywhere we went it was like a rock star greeting especially at the apple store, i would call that histeria but of course we took the opportunity to talk about his business as well. Listen. Its always special coming home but its even more special coming home and bringing a message about education is the great equalizer, and actually, helping to fulfill that dream, along with lots of Community Leaders here, and other companies. Susan so birmingham is the first place for an education farming and im just wondering from your perspective based on somebody that grew up in this state being the first in your family to get an education how does it feel to be back to be able to give back to the community in this way . It makes my heart sing, to just say it simplistically. Theres so much that we can all do from an equality point of view but one of the most important, maybe the most important is education, and so if we can bring coding in, if we can bring creativity skills, if we can bring the intersection of those two things together, people will have an incredible future and thats what were all about. Susan the education farm is proceeding coding opportunities for underserved parts of the community, and talking to some of your administrators and educators some of the students are building their own app and i feel that is not talked enough about, that the app economy that apple has built over the last 10 years creating 1. 9 million jobs. This is enormous, in 2008 the app store didnt exist, and so you just look back over this 12 year period, and as you say its almost 2 million jobs in the app economy of the United States, and people are able to write apps, to bring out their passion about a particular business, and they can do this out of their home, they can stay in one place if they want to be in, maybe they want to be in a rural town or whatever, instead of moving to another place for a job, and weve now paid out 155 billion to developers. I mean this is just an enormous amount and no one would have predicted this 12 years ago. Susan yeah, so also by the way, when you hear of this criticism, about not bringing back jobs from overseas to the u. S. , are you thinking, the app economy were creating high paying high value jobs and thats what americans should want. Yeah, but im all good for creating more as well, you know our total in the United States is 2. 4 million and a lot of those are in manufacturing, and we continue to look for other ways to bring more manufacturing to the United States, advanced manufacturing kind of products and of course, we develop in the u. S. , and so the vast majority, almost all of our engineering and research and development is in the United States, so this is our home. Weve committed to invest 350 billion here, by 2023, and were on track to doing that. Theres probably no better gift than a business can give than giving back into an investment point of view that creates jobs and opportunity for people. Susan and your Community Education Initiative Also fulfills part of your commitments to the Workforce Development initiative that the white house has as well and thats to prepare america for the automation era. Do you think america is prepared enough . Today, no, no, i think the thing that weve missed in the past about education is that lots of people thought education was something you do onetime in life. You go tok12 and go to college and then youre signed off. Well things are moving so fast now, technology is moving fast, that all of us have to be life long learners and so you need an Adult Learning community. That is here which im totally thrilled about. Also, the skills that people need as they graduate have changed. We believe that every child should understand coding before they graduate, and so the act of bringing coding to schools in birmingham city, big deal for us, and lastly, creativity is such an important skill and in too many schools the muse being and the arts have been neglected so we found a way to bring creativity skills into other classes like math and science and so forth in order to make sure that those skills arent forgotten either and so were bringing all of that together here, and it feels sensational. Susan now i have to ask you about whats happening over in china and the coronavirus. You have said before that your First Priority in china are your partners and your employees. Whats the update on coronavirus for apple . Well first of all let me say again because i think its so important in an environment where people are trying to get well, and Health Professionals are putting their well being on the line to help people get well, that were human beings first and Business Leaders second and so that is my philosophy and so people are number one. In terms of our business here is what were saying to give you a flavor, for whats happening on the ground is we had closed ill talk about the stores first. We had closed stores all of our stores. Now weve reopened the vast majority of them and so we were able to put the necessary conditions in place to reopen the store. Weve reopened the vast majority of them over 80 . Now that weve done that, the focus is now on ramping up the stores, and that will be more of a function of extending the hours to normal hours, but also, people having the confidence that they can be in a place where other people are, and how long that takes, i dont know, but im optimistic there. It feels to me that china is getting the coronavirus under control. I mean, you look at the numbers they are coming down day by day by day so im very optimistic there. On the supplier side, we have suppliers. Iphone is built everywhere in the world. We have key components coming from the United States, with key parts in china, and so on and so forth. When you look at the parts that are down in china, we have reopened factories, so the factories were able to work through the conditions to reopen , theyre reopening and they are also in wrap so i think of this as the third phase of getting back to normal and were in phase iii of the wrap mode. Susan that sounds very optimistic america is the biggest one and they wont make their sales target because of coronavirus but as you heard, liz, it sounds like tim cook is not worried. Hes not panicking at least. He has been here before and he thinks things will get back on track. Liz scott minor of guggenheim was here yesterday and gave prop s to tim cook for speaking out on fox business and showing leadership during this kind of time, and more ceos really need to get out there and do what he said. If they do feel so inclined, i mean, we dont want to ask for anybody to blow smoke. We dont need sunshine if its raining. We need facts and we appreciate him coming on with that. Thank you very much. Susan thank you. Liz susan li lets take a look at netflix down for the week with a pop over the last couple of days the companies insulated somewhat, from the coronavirus as people stay home and decide to binge or stream. They would rather not go into movie theaters so netflix at the moment is sort of the least worst if you will of some of these names its still getting hit to the tune of about 3 right now but the last of the big tech stocks still up for the year you could call it netflix compared to facebook you can see google down about 2. 8 facebook down 8. 9 . Weve seen tech and everybody else taking a beating, but on the nasdac all week long, christina partsinevelos is there and looking at the particular action that is jumping out to her trained eye, christina . Kristina liz ill follow your train of thought and you were mentioning the stay at home stocks and netflix,nvidia is doing very well to the and that is a bright spot amongst the chipmakers and a lot has to do with an Analyst Report from mizuho that says it will gain from this because people could stay home and use the product for Online Gaming they are a chipmaker and they do make processing units for gaming and analysts believe the company is going to do well because we stay home despite other analysts, and we talk about the Semiconductor Index as a whole its a good one to follow, this is the soxx, this tracks the entire Semiconductor Index, and overall Semiconductor Chips have been hit hard because of a lot of the parts do come from china and we continue on this theme. Tesla since were talking about tech and im at the nasdac, tesla is having its worst week ever since its ipo. Its possibly going to have the worst drop ever for this week if we find out by the closing bell, but ron barron , a billionaire investor, he did a lewd to the fact that the company could be worth and many people love to guess how much the company will be worth, could be worth at least 1 trillion by the end of next decade. And then last but not least weve got to bring up amazon. Theres two pieces of information for amazon, shares are trading lower right now, one amazon is removing fake items or items that are marketing themselves as helping with the coronavirus as healing for the coronavirus, so amazon has taken steps to remove it and then the second thing too is amazon has pulled itself out of the game developer conference so were seeing this acrosstheboard, a lot of conferences being canceled, facebook canceling a conference in may, so this is just another example and liz, im going to end on this because youre talking about it with charlie before just a thought on wall street. I just received a new note this is from a cio at taylor Capital Management and he called it a hiss y fit right now and words of advice often you get words of advice from Money Managers is if you have extra cash, take advantage of it and right now youre seeing dow down 880 points. Thats his words. Liz well, we can tell people there are bargains out there all we want but if they are that concerned about owning any stock at the moment, they are like the mice who say keep the cheese just let me out of the trap. Christina thank you very much. Kristina thank you. Liz thats an old problem from the floor of the New York Stock Exchange from stock exchange, from way back when. Amazon not the only tech giant taking it on the chin, dell and Cloud Computing giant, vmware, both are sinking as we head into the close. First we can show you dell and by the way dell for the week is down 24 after becoming the latest company to warn on the coronavirus outbreak saying soft demand in china could crash first First Quarter results dell getting hit 7. 9 look at vmware down 10. 7 but for the week its also down 24 taking a big hit to its bottom line after its failed to close several major deals in the Fourth Quarter. Full year guidance, also disappointed investors. Ceo pat gellsinker is still confident in the companys future saying strategy continues to resonate with our customers. At this price, 24 cheaper, vmware looks like a bargain but again, we cant force people to see when things are on sale. We have more high profile event cancellations that are coming into our news room, as travel restrictions to multiple countries experiencing viral outbreaks mount, we need to tell you about the Geneva Motor Show in switzerland. This is a very highend car show that attracts thousands of people. It is outright canceled. Now lets talk about the United Arab Emirate bike race in dubai slam it, it is cancel after two italian cyclists tested positive for the coronavirus, and they have teams and writers reported to be under lockdown in at least two hotel rooms thats what we are hearing. The global Tech Industry being rattled by the virus as major tech giants a couple days ago it was facebook and microsoft, amazon and now reportedly google canceling its highlyanticipated developers conference. And if you are in the hotel book ing industry, as our next guest is in a big way, what about the Tokyo Olympics, the Tokyo Olympics are a huge question mark, at this hour as the coronavirus threatens the 2020 summer games in japan. Lets bring in rose rosenberg, president of the americas for hotelplanner. Com, joining us live lets talk about the olympics first how many hotel rooms are you at least for now booking . Well right now, demand to tokyo in japan is basically cratered so there is really very litt to no interest to travel to japan, right now. Its been a dramatic change over the last three weeks. Liz are people canceling their Olympic Hotel rooms they booked maybe a year ago . I dont think people are canceling yet. We talked to our Hotel Friends on the island and we dont see cancels yet. I think people still feel its months away, so they will hold what they have, but there is still a lot of inventory for sale, the prices are good, were basically seeing a stoppage in future bookings. Liz were looking at hotel stocks. Its a mixed picture, but we know even after a bounce for bookings, and some of these other names, it has been a horrific week and a half or two weeks, as the virus appears to spread to europe. I think the italian issue became very disconcerting when tuscany reported two cases, and northern milan and those areas, this is a big summer destination. What do you fear the most and are you starting to see any indication that some bargains are coming through . Well there will definitely be bargains. I was supposed to be on a plane on sunday to go to a huge travel conference and that just got canceled today, so i think the First Quarter and going into march and lets see what happens in april, i think travel is going to be greatly reduced. Im also seeing on our site is that the prices are starting to come down, so people that are traveling are Getting Better deals. Were seeing prices coming in 5, 10, 15 below what they were a week ago. Liz youve been in this business a long time. Can you give me a sense of anything similar in the past where you had this kind of as you say cratering in reservations . Not really. I mean there was the zika virus in 2016 for the olympics that had an impact on people attending. Theres about 25 of the tickets were not sold, for that particular olympics and i think we can see a repeat of that in tokyo, or japan, assuming they go forward. Liz if you were talking to friends, who asked for your advice about traveling, lets just say to europe for the summer, im not even going to say japan because we know whats going on theres restricted travel to schiff, we could put up that map again you would see there are flashing warning signs, what would you advise them . I think i would advise them to wait 30 days and see what happens with the different situations that are happening in each country, but theres a lot of Resources Available fortunately youre covering the news i think thats excellent and so theres not a lack of information available, but at the end of the day people have to make their own decision if they want to travel or have to travel. Liz were looking at the map here of how many cases are spreading across the world here, now as we mentioned earlier, this week, kuwait, bahrain, oman , australia has 23 cases, russia has five, i know norway, finland had its first case, bruce, hang in there. We love you. Listen, you are pretty heroic dealing with what youre dealing with at the moment but as a business we care about what happens to you, please keep us posted thanks so much. Okay thank you very much. Liz hey, hotel planner. Com thats his company help him out if you decide youre brave and going to go travel at least in the summer go for it. It may be a shortened trading month but the dow and the s p are both on pace for doubledigit losses for the month of february that be their worst month in 11 years , the nasdac is on pace for its worst month since december of 2018, so we thought lets go to the floor of the New York Stock Exchange right now, 18 minutes left of trade and the session, jackie give us we know about the laggards maybe start with the leaders how that . Reporter we can start with the s p leaders, to give you a bright spot. Pharmaceuticals,regeneron was one,biogen also seeing a pop more than 13 in february, and tmobile on the positive merger news, so that all makes sense but unfortunately, liz i cant avoid those laggards so lets stick with the s p for the monthly laggards there. More in life lock was down pretty big, more than 30 pretty big decline there, Royal Caribbean and norwegian cruise lines no surprise the cruises have been absolutely decimated as a result of the coronavirus. Im going to go back to the dow because youve got big laggards related there too. Exxonmobile is one of them, oil prices have been decimated concerns about the virus, global demand, taking those prices down into the 4 handle and exxon see ing almost 20 in losses in february and then of course Goldman Sachs and American Express because the financials have been hit hard by this too. Its really difficult, liz, to find any group or particular stocks besides maybe some of the mass makers and those potential vaccine makers that have done well this month. Back to you. Liz jackie, thank you wow look at amex down 17 some of these names are really looking like bargains but again folks we do want to stress that it seems as if the shakeout is more protracted its going to be a lot longer as these pieces of news come in, that this country now has a case of this one, i do just want to tell you whats hitting the tape right now Vice President pence with whom the president had put in charge of the coronavirus situation is coming out in his office saying only one american with coronavirus is still in the hospital. This according to u. S. Vice president pence, im not sure the market cares. We are down 1,000 points for the Dow Jones Industrial as we have about 16 minutes left in trade, for the session. The show still going on for one major name in Live Entertainment despite the selloff this is really interesting look at live nation stock, getting an absolute standing ovation at this hour, from our investor audience here, shares not only bucking the latest leg of the selloff but one of the best performers on the s p at this hour, the ticket and selling concert giant, giving an allstar performance in the Fourth Quarter beating on profit fueled by an 11 jump in revenue, to 11. 5 billion, that figure also above expectations, so live nation, of all stocks, up 4. 5 or 2. 57 to 60. 32. Despite cooking up some new deals with some of the biggest chains in the world from mcdonalds to starbucks beyond meat is going bust at this hour look at the shares they are tumbling after reporting a loss of a penny in the Fourth Quarter versus expectations of 0. 01 profit down 16 to 89 a share. This despite sales tripling in the threemonth holiday period as restructuring and administrative costs ate into profit, potentially weed wacking the plantbased protein maker also weighing on the shares but still the shares are up more than 250 since pricing the ipo at just 25 last may. I have a call here if we can look intraday at the nasdac because right now were down about 167 points for the nasdac at the moment, and we do have to just tell you that the earlier low of the session was a loss of 302, so that is looking slightly better i would definitely say, but with the dow still down about 910 points and the last lets call it 15 minutes of trade, 14 minutes of counting weve got eric friedman, u. S. Bank Wealth Management chief Investment Officer with 170 billion in assets under management and we bring in our floor show traders at the New York Stock Exchange and the cme group. Eric let me start with you. Give me your sense of how youre looking at this selloff of now seven days straight, knocking more than 3 trillion off the value of stocks on paper in just those sessions alone. Liz its certainly been significant and we think the best way to contextualize this selloff is look at it in really three phases. The first phase is really a reaction airy phase so news flow comes out, and theres either buys or sells that happen almost instantaneously. The second phase is really more of a liquidity phase, where people are forced to sell positions they probably dont want to sell so things like margin calls happen and risk managers tap portfolio manage a ers on shoulders and sales happen and we get to the fundamental phase which is where a little more clarity comes in about the forward pass and more analysis takes over so we think were really in somewhere between the first and the second phase right now, so wed expect there to be a little more volatility, there will probably be more downside but there will be another side that doesnt feel like theres another side imminent right here right now. Liz i would say thats definitely true. Thomas, i want to get to you down on the floor of the New York Stock Exchange. We now have about 13 minutes left of trade after a very very difficult seven sessions. Give me a sense right now what you expect will happen, were down 840 points do you see an acceleration to the bottom here . Yeah, i think liz, here is the situation where wall street is throwing a Clearance Sale and this is the only sale you can see no one shows up. I think people are a little afraid to go long into the weekend and its the difficulty in quantifying fridaying the risk moving forward but we had a similar situation in 2007 with the euro crisis, they said well do whatever it takes and what we need here is these drugs to come through the human testing in the u. S. We know we have the gillead drug that takes another 10 days to get the approval and once people have that they get a lot more comfortable that the end is in sight, we can flush q1, and we can look forward to earnings over the next 18 months but right now, people are feeling uncertain and there maybe an opportunity to start getting involved with the bigger stocks, the safer stocks down quite a bit. Liz as long as , phil, people understand that this may not be the bottom, but we just scoop up each day, maybe a little bit here, a little bit there, things are still on sale but phil, i am in the business on the claman countdown with my entire team of giving people the facts. They dont like hearing that there are people dying, okay . We dont like that thats happening, it is a devastating and tragic situation, but it is true. So we know that suddenly when were reflecting that and superimposing it over investment s in the stock market as a business network, there is going to be supply chain disruption, then earnings are hammered and so on. Home delivery, meal kits, Video Conferencing are the names id expect be winners here and yet, there is so much red on the screen. Yeah, and i think theres no doubt the human impact of this cannot be ignored. And in the marketplace i dont think we ignore it, in a weird way. We reflect that in our fears, and the way that we react on the marketplace, you know, ive been through many crisis september 11, the financial crisis, but when theres human to take on a different feeling, but at the same time, when you look at whats really gone on down here you also know that sometimes, the fear is much greater than the reality, and even though weve seen a lot of deaths right now and we dont nowhere its going to stop, the reality is that the deaths is less than the flu, at least from what were hearing. Now we dont know for sure but theres more deaths from the flu every year. Its more of what we dont know that is causing all this market turmoil. People may be over reacting and were seeing that price in a lot of these commodities right now too. Liz eric, once we get to the fundamental stage, and you talked about your stages here, what do you expect that investors are going to do and what be the sign to you that suddenly, things might be turning around . The biggest thing that wed see in terms of a turnaround be what cfos are actually going to do with capex. That is the most important variable and of course the fed of course having functioning credit markets very important but ultimately this boils down to what will companies do and what will consumers do, so were in a really awkward shoulder period between just having reported q4 earnings, were waiting on q1 earnings of course were still in the middle of the First Quarter so were not going to hear a lot of positive news, liz but we think at the margin if we see some stability of cases spreading if we see some improvement particularly out of china particularly out of some of the areas like italy that have had this virus more embedded in their system, that for us be a good start. I think in terms of market level s you have to Pay Attention to, s p 2,850. Thats a key level thats the october early lows and also a 50 retracement from where we had the lows in christmas of 2018, thats really important and the other level we think is important is 1 on the u. S. 10 year treasury. We think its hard pressed to get down to that level but we have to see bond yields stabilize an start to pick up a little bit. Those are things the market tells that would give us at least a little more confidence than what the market is feeling right now. Liz great to see all of you right now, guys, can i call another audible folks we have eight minutes left until the close this is a name in the news well before the coronavirus, boeing. The stock is down 5 right now. We should tell you that boeings market value fell below 150 billion during the session today. We are barely above that right now at 153 billion, but the stock is down about 34 yearoveryear so it has just been a very difficult time for boeing investors particularly those who felt there be a come back since the 787 max jet has obviously been grounded for quite some time so as we watch one of those components we could spread it out to the Dow Jones Industrial, seven minutes now, until the close, were down 733 points, well off the lows i can give you that good news. Weve been down more than 1,100 points we should look at wayfair , the big online home goods retailer, and way fair at the moment is falling, investors are not going into the stock at the moment, after it posted a wider than expected loss in the Fourth Quarter on soaring costs. So wayfair is getting clipped by 13 right now and it opened at a three year low already this morning, tough times for Ticker Symbol w. We flip it over to peloton, peloton spinning out despite gaining another bull, macquarie initiating shares of the hightech bike maker that outperform on the Companies Strong brand image and growth potential, strong brand image. That is amazing considering everybody was pounding down the stock after some commercial they felt was somehow sexist but peloton shares are down 7 and a third percent this is one of the names widely mentioned as an opportunity buy, because people dont want to go to the gym and touch sweaty equipment and maybe touch something that would give them some type of illness. Get to stay in your home but its set to round out the week with a gain of 4 so were trying to find some silver lines here. Lets look six minutes to go we know the nasdac is down 13 for the week i can tell you that the s p has lost about 9. 7 . Its a very very tough moment at the session for the dow, down 13. 5 but that volatility index is speaking 15 , for the year as i said up 164 for that fear index. Starting yesterday, markets were all officially in correction territory, but can we bring in our next guest, so the selloff is just the beginning of what could be a very long migraine headache for investors joining us now the host of the brothers show, Todd Horowitz and money founder ceo, mark mattson. Let me get to you, todd what happens . Im worried if youre worried. Hi liz how are you . You know, listen the markets have had a tremendous run, we start i think in the very early stages of recession going back a couple months ago. I think what youre seeing here the markets were surging for a reason to selloff and i think thats what youre seeing they got their reason, they are selling away and its just going to continue. We will have some vicious rall ies, as we call them a rip your facers but they will come and be selling opportunities. I think we go significantly lower, and i think were going to go well into bear market territory not only correction, but again there will be rallies but i think the individual investor should just stay invest ed because at the end of the day the markets go up 8. 5 yearoveryear so why would i want to fight a professional trader thats the way im trading it. Liz mike youre a pretty guts y guy weve known you since the start of fox business, you now have 8 billion in assets over at matson. Do you think this is overdone . Well i think the futures unpredictable thats what i think so im telling investors right now its never the right time to pan being and if you build a prudent portfolio with shortterm fixed income to offset risk as this thing goes lower you selloff your fixed income and buy more when its low. If youre looking at the next 5 10 years you dont have to worry about the next 510 days so its critical not to panic when markets go lower, i understand human fear, this is a massive human tragedy, if you look at sars, the bird flu five years out the s p was up in the ballpark of about 80 after that, markets are extremely resilient and people that stay long term are rewarded by patience and rebalancing. Liz i couldnt agree more. We do still have with us eric freeman, of u. S. Bank Wealth Management and eric let me look if we can bring up the 10 year yield. Its at 1. 12 . That of course the 10 year is the basically the bond of record here in the United States. This was 2. 5 weeks ago, 1. 5 and change percent, were now at 1. 12. This is a screaming sign that people are terrified, and i do want to know from you if youve ever seen anything like this before in that we have had it in such a compressed amount of time, seven days of a massive selloff. Liz it is very compressed from a time standpoint, and to your point, the magnitude of this move is significant. Theres a couple things we think at work. Number one is this is a message really to the fed and Central Banks that the anticipation of low growth is absolutely staring them in the face. Number two, i think in terms of the overarching theme within the fixed income is that this has been a flight to both duration so longer maturity bonds, as well as high quality one of the most important things investors can do, your respecter of your longerterm perspective is to make sure your bond portfolio is in shape. So if you do not have high quality or duration, you should have some. Again, every one varies by investor, even though rates have come down, there is still time and scenarios like we previously mentioned. Coreyliz we have one and a half minutes before the closing bell runs out, so to speak, the dow is down 526. I do want the trader brain of yours to kick in what we buy on monday. I have been buying all week, i bite every day, i bite automatically for my investment account and i buy space, im betting on Richard Branson with space. They dont make any money yet but its a cheap play on a hightech stock that has risks but a terrific play and i think you look at the thing surrounded the company where there trying to go, i think has a chance to be a monster winner at some point in the risk is very small overall speed to 30 seconds. Mark matson of the Federal Reserve came out, jay powell at 2 30 p. M. Eastern and says will do what it takes, do you expect an emergency rate cut . It might happen but most investors when it comes to fixed income are way too long term, Interest Rates eventually come back up they will get hammer, a lot of them are buying bonds right now and at a terrible risk in their portfolio. Shortterm highquality bonds. Liz thank you for your expertise. Mark and eric, i know you are relieved to hear the closing bell. They close out the worst week since the 2008 financial crisis. Liz like liz said, its the first week for stock since 2008 financial crisis, all three major averages falling further into correction territory but lows on the final trading day of the month as coronavirus fears continue to weigh on wall stre street, the dow indy down 342 points, extending losses for the seventh straight day. I know we are down 347 but its a heck of a lot better than it was during a lot of the rest of the day. We are down 1000 points, more than that earlier today i am connell mcshane. I will commute after the bell, we did close on a relative basis