sharply higher on new hopes for a vaccine and drugs to treat the fast-spreading coronavirus a big spin-off from merck. the company announcing plans to split a number of its slower growth products into a separate public company next year disney plus growing at a faster than expected clip, nearly 29 million subs, and counting yesterday's rally saw the dow and s&p best day performance since august nasdaq's eighth record close of the year jim your point about the president, the lead headline in the page one of "the times" is a buoyed president a lot of that about the country. >> you contrast what the democrats and republicans talk about is extraordinary the president is making the strong case there's a lot of money in the market. $12 trillion is being created wealth the democrats saying that wealth is not so-called trickled down, it's not helping for people in transportation costs, student loans, prescription drugs. it's almost like we're dealing with two different countries you've got a country that the president cites all these people that have now at full, not full but great employment and taking regulations away, and the wealth being created and then the democrats say it's not created for our people but for our purposes here, there is tremendous wealth being created and what it's doing is making people i think not wanting to sell stocks remember baby boomers, doing work on baby boomers with my research made for "mad money" ben stoto. the baby boomers were supposed to be selling. they don't want to sell tesla because it goes higher it's self-fulfilling i'm troog even-handed. like him or hate him the president is great for the stock market but previous presidents have not cared about the stock market, because they don't think it's that big. i'm listening to him thinking i understand why people are buying stocks because employment is good and employment is always correlated with economic development, and with better numbers. so that's why i was being a little facetious he took up numbers for the country but in the end you listen to this i've never felt this way after a state of the union, geez, i see why people are buying stocks >> how do you separate it from the fact that the faang plus index is now at its highest relative to the s&p ever, right? ten names. separated from the sentiment around tesla >> i did some work yesterday with carolyn boroden does fabulous fibinac 'e analysis nasdaq is separating itself from the s&p. immediately i'm hearing wait a second, that happened in 1999. i come back and say yeah, you got this absurd rally where if you held on, you doubled the nasdaq so i come back and say well look, these companies, they're loved but their valuations other than amazon are not crazy. they're not. i mean, alphabet reported a number that was traffic, went back and forth and felt that now you know the benchmarks. facebook was pretty good number. when i look at snap, facebook's really good. apple, if they really are doing what jeffries says, breakout year for wearables i get it. amazon quarter was stunning. they are making so much more money than wall street thought, and a lot of it is cloud, which i thought was supposed to be taken away by the people at azure, microsoft microsoft's expensive stock, but so what? >> yes, it's got a growth rate and obviously cloud is growing quickly. move sort of out of the key parts of earnings season here, certainly not a bad reflection in terms of as you say the overall economy and the strength of these companies >> versus gm versus ford. >> not to mention versus the ten-year yield you talk about the president, but i mean, what are your alternatives, continues to be also a theme >> right president said swap out a bond for the stocks >> when you can get -- >> i'm being facetious >> i know. >> you know but our viewers may not know >> no, i don't think they do i'm pretty confident they don't. >> it doesn't matter bonds are no good. >> right >> and then the coronavirus comes along. >> we moved up sharply in the yield over the last day. >> bonds are good. >> on january 24, when we last had a high for the s&p, ten-year was in the 1.75 range. we're not getting, not repairing that >> right >> but we're getting there >> i know, but it is, look at 3:3 3:30 last night, at 9:30 we knew about the yokohama carnival cruise, princess krucruise off yokohama with ten people who with corona. david? >> i don't need to look at you to listen. >> you're like my father >> am i? nice thing to say. >> "jim, i'm listening." you're not listening 3:30 we get word from china maybe they have something. cowan comes up today and says there was a positive data point total new cases ticked down tuesday. you've got this on the one hand the virus takes in rates so they're lower. on the other hand, we're getting good news about good news about the coronavirus. there's something for everybody here but there shouldn't be >> nike last night says it will have a material impact on greater china ops, up in the premarket. >> stock went down $1.50 when they announced that to 99 and blink of the move i come back, it's up. who are these people buying? what does it take to have a stock go down, for heaven's sake other than ford when they said sell our stock >> we should get to ford next week is important as we know in terms of the workers returning to the factories, potentially. >> right >> or whether they will. >> that's a great point. do you think they'll return to apple? >> i have no idea. they're supposed to. >> hyundai took down their 2020 revenue guide. some workers coming back to work, some not able to interact with other workers it's not all get back to work february 10. >> 50 million people are quaranti quarantined. >> listen, jim, we know the number of infections is far most likely far beyond what we're being told by the chinese. >> right >> the deaths are far beyond that as well the question is how much >> you're saying the prc is lying to us? >> yes >> welcome to the club, my friend >> which club is that? >> the club that knows the prc knows about it the entire time they had it december 20th, they came here a delegation >> and signed a deal in the east roll >> and went to davos, shaking everybody's hand did you bring purel to that conference >> i wasn't at davos but yes >> davos you had to bring -- honestly, they knew! and they came here and we discovered -- >> what? >> december 23rd, january 23rd they went to is ada santa rosa >> in wuhan trying to get sick, you know, you make it sound like they intentionally did it to somehow spread a virus it's horrible, and not true. >> it's obviously a story for many corporates. disney last night says disney plus streaming service ended with 26.5 million subs, added more than 2 million since the beginning of the year. snaps down on revenue miss hurt by a shorter season. ford tumbling after disappointing full-year guidance and earnings miss, jim >> call me too optimistic. i like the snap quarter. they talked about consumer cpg the cpg spend is going up. >> you were saying that yesterday as well, i think you were talking about ralph lauren and how very effective on snap or something >> yes >> i was listening >> you did >> yes, i did. >> pop said he listened, too >> dau is up for but rpu up three. >> i thought the rpu number was great. they talk about new product, short video that are selling i think the consumer companies desperately want to be in anything that's online, and snap has become something that was profit-taking. 20 million people, david, i bet you your kids are on snap constantly >> one of them is. he uses it as his communications platform >> right >> let's say i'm colgate if i could reach your son, i might have, and he's trying to figure out what toothpaste to use. i target him with colgate. maybe he stays with colgate forever. >> it's possible >> yes >> or it's whatever we buy for him. because he's still not actually going -- >> brain washing, manchurian candidate? let him make up his own mind >> i'm looking forward to the day he goes to the store and buys his own stuff >> i'm sure he is, too >> i don't know about that >> i'm just saying that it's going main stream. i never felt that way. it was a captain morgan problem, you can't, you know, you're captain morgan, they do the thing? >> yes >> the people from snap are underage but i remember dealing with somebody who was in charge of the colgate advertising he said if there was ever a way to reach the 13 to 18, we could block crest. guess what it's been found, and it's snap >> as for disney, that 28.6 number is approaching hulu's 30.4, which is incredible given their goalor 60 to 90 is a 2024 goal, david, and basically a third of the way there >> they are. listen, when this was announced back what was it in april of last year, and then obviously the roll-out in the fall, if you told people a number, this early into the rollout, they would have been quite surprised. and the market perhaps anticipating it, because they reached the 10 million subscriber number so quickly, that's the last update we got. in the early days in november they told us 10 million but 28.6 million is, there's just no doubt it is an incredible success. it's costing them a lot of money. we all know that >> right >> it will continue to, but iger has done something that few ceos are able to, which is get investors focused on the opportunity that is being created, the future cash flows that are being created, as the existing business slowly but surely runs off a bit. he's done that, and spending the money to do that the revenue number is up dramatically at the company in terms of revenue growth, spending to get the revenues the number is all that matters 28.6 million they estimated 28% came from the verizon promotion you get one year free. >> right >> the numbers are very strong >> yes, very strong. >> and point to its continued place in the marketplace, one that is going to see the addition, by the way, of hbo max, not too long from now and then the ad supported peacock service from our parent company later this summer that is going to get even more crowded but disney clearly carved out an important place for itself, and espn plus and hulu have also done fairly well huely live and hulu. >> espn to speak of, advertising wasn't as great but that may be year over year, anomaly. something about espn plus is good >> yes >> swimbird is a smart guy for morgan stanley, talking about earnings per share doubling, 2024 spotify is buying the ringer for undisclosed terms and daniel eck said he thinks it is like buying the next espn >> well, spotify is doing well but not well enough. no one ever seems to think it's doing well enough. i think it's a terrific story, but so what? it's good. but no one cares i thought the acquisition was smart but every time they make an acquisition, doesn't do anything i think a lot of it is people just think there are so many >> q1 through spotify, the numbers of overall and that's what you see reflected in the stock price. podcasts that rare appearance. we're moving strongly, and love to know what they're paying for ringer, given how he spent so much time building that company, kind of failed partnership with hbo that he had for a while. >> do you think it's opaque? >> i don't know. >> this is what gave us in terms of sound on the ringer take a listen. >> what we really did with the ringer i think is we bought the next espn, and we think that's going to be a tremendously valuable property as we looked at, you know, the development of sports over the next decade, on the billions of people that will start listening to audio so we're just very excited about it, and yes, we will invest in that trend >> spotify of course well-funded in the private space, has been able to carry some of that through into the public markets. >> i think they're taking a long-term view i don't think they care about the near term. that's what i think is going on. they have a long-term view i think it's -- they're using an amazon model we're going to keep expanding, doing what's right long-term and the market isn't used to hearing long-term. they want to have short term, but short-temple doesn't mean much to spotify. it's run like a private company. merck announcing big spin-off plans we are on track for another strong open. we'll get close to that all-time high s&p 3333 when the opening bell rings in about 15 minutes legendary terrain in telluride, the unparalleled landscape of park city, or the famed peaks of whistler, you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow. ship skis. your skis. delivered. and when you open a new brokerage account, your cash is automatically invested at a great rate. that's why fidelity leads the industry in value while our competition continues to talk. ♪ talk, talk the separating out of the slower growth drugs from the fastest growth company what merck announced this morning in addition to its earnings, it is going to be spinning off from its women's health, trusted legacy brands what they call and their biosystem similars business, it's going to create a new independent company, new co for new that will have $6.5 billion worth of revenue and will begin trading let's call it a year plus from now, as an independent company with its own dividend, its own ceos, its own board, all of it the sxin pin is intended to be free you get the new shares as a current merck shareholder t will have a new management team, kevin ollie will be the chief executive officer, over 10,000 employees and merck will receive a dividend of what they say between $8 billion and $9 billion, from newco. again, it is this idea of separating out the slower growth products, so that big pharma, which conceivably is fairly good at discovering and commercializing drugs can focus on that. merck of course has a number of quite successful drugs, led by ketruda, cancerer this in a finds more and more uses and may become the largest selling drug company in the world this is not unlike other companies doing as well in the future so this will trade lower multiple than merck but the hope is of course that you get a higher multiple on what is left from merck, you have a sort of very stable cash flow producing company here that radically reduces its cost basis by sort of slashing the sales force. so many other things in terms of what they can do organizationally, and then you have merck focused on oncology, vaccines, hospital specialty and animal health. that is where they're headed this new company in terms of where it stoods is a percent of merck, it was 15% of revenue, 25% of its manufacturing, 50% of its products and that sort of gets to this idea here, where they can potentially cut costs, and 60% of its skus. guys, important point here as well, the dividend, $2.44 a share for 2020, at merck, is not going anywhere remember the pfizer deal, the deal with mylan is not well received by the company. you got back to the payout from pfizer here merck keeping its den depend and newco will have a dividend of some kind as well. it is dividend additive, jim, is what they're saying. merck is down as you see, almost 4%, at least thus far on the news these have not been overly particularly well received by the marketplace, at least thus far when you look at the pfizer deal spinning up into mylan >> you're so right, david, they make so much sense to me but they're not paying off glaxo doing the same thing and reported a number this morning that was sub par, down a couple bucks but they're splitting into the old and the new. >> right >> and the feeling is that the old was the great cash cow that supported the new. >> right >> they're getting rid of the cash cow >> they'll be differently valued, merck. >> i know. >> in some ways you are demanding a somewhat different shareholder base because it's about finding those big drugs, developing and commercializing them, and not as much relying on the things that are either not growing, coming off patent >> novartis did it >> novartis, yeah, sandoos ther. >> j&j stock is doing okay >> spin-off expected to be completed in the first half. we'll go tote what the president said last night about drug pricing in his state of the union, cramer's "mad dh.as futures up 280 don't go anywhere. 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"the opening bell" is brought to you by nuveen, a leader in income alternatives and responsible investing. >> welcome back. let's get to a mad dash and we'll roll right into the opening bell what have you got? >> david, i've got clorox on today. and i think what's important to note is that yesterday clorox, we've got from the w.h.o. that clorox bleach can be used against this strain of coronavirus. it does kill it. i always felt it would kill it i said that clorox kills anything, but what matters here is that clorox is boosting bleach prounduction to meet it to boost their cash cow they make a fortune on is significant. even though they had zero percent organic growth this product is the gross margins are extraordinary on here say bit of news about the coronavirus, they found something that works and i can imagine every hospital every building they're going to use it to wipe down because it does kill the virus. you see what happened on the princess, the diamond princess last night, off of yokohama. what do you do you have to wipe everything down, and what works clorox because it kills everything. i think it does matter on hump day. >> and we'll see what benn benno dorer has to say on "mad money" tonight what is the multiple on this stock? >> very high >> you always pointed out versus some of the other fast growing >> colgate has a high good quarter. these companies if you step back in the interest rates were higher, these companies i think would all be lower right? interest rates are that's like a fantasy world and this is another reason [ cheers and applause >> let's get the opening bell here on the s&p 500 at the cnbc real t