Economy. Investors are digesting the continued momentum of Bernie Sanders. Yields weaken to a nearrecord low, tenyear, another sign of the markets flight to safety Jonathan Gray, the perfect guest to talk markets and valuations well have more comment tear from liz ann saunders, david, and jeff sherman, how companies are recovering to the virus, and what this means for your Retirement Planning with suze orman. An actionpacked couple hours with 59 minutes after the session. Mike santoli with his dashboard. Kate rogers is tracking the plunge of the nasdaq eunice yoon is in beijing, and meg tirrell has details on hopes for a treatment. Joining us is andecember anastacia amoroso. We would have expected for this to be behind us, but what were saying is this is to be expected, this is valuations were pretty stretched already. Hedge funds ctas were pretty levered up we are not entirely surprised by this reaction. If you asked what were telling clients to do is look to the Options Market they take advantage of the volatility, the rise that were seeing there. Anastacia is here with us for the first full hour. Mike san tollest has todays market dashboard thank you very much, wilf were now bouncing back up to others today it seems like investors found themselves feeling as if there was nowhere to hide. Just a oneyear chart of the s p, to put it in context. Obviously a pretty steep drop here, about a 5 peak to todays trough drop there. I do want to point out the drops that began in may of last year and then august in total were about 6 to 7 , so deeper than this one, though this one got there in a bigger hurry. We got to the yeartodate breakeven market what i am focused on, though, is if it does start to build on itself, we have a further pullback, this low from early december, if its broken in the First Quarter of the next year, some people look to that and say it could be an issue so i would is a that anywhere in this zone youre still in pretty routine pullback motor some of the drama is in stocks versus bonds, so take a look at this relationship chart obviously theyve been kind of going up in consequence effort as yields wednesday down, stocks went up, until here, and this massive kind of 180degree reversal in terms of that relationship happens right here. Its somewhat similar, again, to early august when did that selloff in stocks try to slowly start to find a bottom when you had yields start to level off and not make further lows well see if Something Like that might go on this time. They want the yields to perhaps stabilize at these levels and not go any deeper. Mike, clearly as you said over the last year, there have been worse peaktotrough pullbacks. And part of the reason for that is the market had tried to stick with the largest megacap stocks that drive the s p, and that gave was that youre sees some of the most crowded ferret ways even though theyre not the most globally or china exposed names. Basically you saw resilience to the moment where the market just could not wall off those concerns any longer. Mike, thank you anastacia, if you look at the other chart with the perspective, this is a brutal day, but zoom out and were will 4. 5 away from a record high on the s p. Is it enough selling to reflect the fundamental change we probably have more to go, but i think mike is bringing up important points the key level to watch into the close is 3050, which is the 50day moving average. The fact were stabilizing, thats a Pretty Healthy 3250. Yeah, that would not be good, but below that, if we do break below the 3250, then somewhere around 3100, 3150 is where we would be looking for the market to price in some uncertainty were not quite there. 5 to 7 is what were currently looking for. The reason why i say that, as back as the economic environment mayfield in china and the fear thats now gripping europe, its a onetime quarter, we hope. If you think about the valuation of how you price things, its over a multiple year time horiz horizon. Wry can a strategist say that with conviction, but its getting worse as it spreads to other Major Economies. Thats a big shot to the market and chances are there will likely be other cases, but history of some of these, buyers have suggested they do work themselves out with a lot of im not saying this would be resolved tomorrow, but i think over the course of the next two months, once the bond yeels signal to you that the fear is behind us, thats when i think equities can outperform sustainably. Unitedhealth is the biggest loser on the dow today Bertha Coombs has the reason why. Were off the lows, united spoj for right now its up about 5 from the lows of the day. The bigger factor may well be Bernie Sanders very strong showing in nevada. Thats a strong pullback for Health Insurers. Bernie sanders, of course, has vowed to put the insurers out of business the fact that hes gaining so much traction has renewed those fears. Not just united today, but the entire Health Insurance sector under pressure today united down about 9 from its highs. The others, are all in correction balance over to you. Bertha, thank you very much. Nasdaq is the biggest loser. Kate rogers has more hey there, wilf, were down just under 3 right now. The big story is apple shaves off some 40 points, of course, apple warned last week it may not meet its own guidance semiing like micron, nvidia and amd are also low er finally tesla, that stock is down by around 10 kate, thanks the spread of the virus stoking fierce iran and italy now seeing outbreaks. Claudia pensotti joins us outside of milan how is everyday life being disrupted, as a result of the climbing case numbers . Reporter well, clearly there is disruption here, as youre saying schools being closed, the biggest factor on everyday life. Is its grown to 230 tonight, five deaths in the lombardy and veneto regions the number in itself is not that large. People are not that concerned about the virus. Theyre more concerned about the measures being put into place. Movie theaters, pubs and restaurants and clubs being closed from 6 00 p. M. To 6 00 a. M. In the morning, so its what you saw in milan today was a very subdued monday. People were still going to work. Businesses are continues to work, but we saw a strong decline in the rail traffic, so there was more, you know car traffic. Of course there was concern over the weekend. People are wonders, you know, how long will this last . Of course supplies could run short. Ecommerce sides were having difficulty, you know, assuring that the deliveries could be made within time there is concern, not too much pannish. Remember the two regions being affected represent 30 of the italian gdp. If it lasts for a long time, it could have a strong impact on an economy thats practically not growing. Its growing just a bit over the zero level so the question is still out there as to how long this will last is there any talk, claudia, at this point about closing borders, or is that preliminary . You know, the Italian Government has stressed that they do not last month there was a train that was stopped at the border in austria, because there were two travelers that actually had a fever, but then it was shown that they did not have the coronavirus the train was let on there is a bit of worry about that so far that hasnt happened. Here trying not to bring this to a panic situation. There is a lockdown of a couple towns in this lombardy region. There is a small area where you are seeing the true lockdown for the rest of the regions being affected, they are seeing they mush respect that account for about 15 million people. There is no lockdown, but just measures to be aware and be careful, to try to get out as little as possible in order to try to contain this virus. The border is, of course, the next question. There has been there have been situations where that has come into question, but for now there are no blocks at the borders. Claudia, thank you so much. The ftse did close down. China still has the most cases of the coronavirus, well over 70,000. The World Health Officials say that the outbreak in china appears to have peaked high, eunice reporter the who had a team traveling for the week here in china, and the officials determined that, one, the drop in new infections is, in their words real chinas aggressive approach has been effective in curtailing the viruss proceeded. The only drug that seems to work is remdesivir, and the virus will likely be around for months president xi had told 170,000 officials that the trend is looking positive, though the prevention work is at a critical stage. Also the ndrc, which is the planning agency, says more provinces and industries were resuming production. The situation, though, still very precarious. One sign of that and the way we know china isnt so comfortable is beijing decided to postpone their very important annual political legislative sessions, which are normally take place in march, but they have now been postponed and theres no date set as of yet. Guys eunice, the level of fear matched the change from the w. H. O. , has that peaked . Reporter i think it probably depends on which part of the country youre in at the moment. Especially here in beijing, theres been a concern that with so many people coming back into the city and resuming work, there could be a second wave of cases. So thats been heightening fears, at least in the capital. Uany, thaeunice, thank you f report meg . Gileads experimental drug remdesivir is the only one seemsing to have effectiveness the w. H. O. Urging prioritizing testing of gileads medicine the stock roses as much as 7 percent earlier. Data should be available by april, but says she doesnt expect it to be a major money maker for gilyard. Sara what other experimental treatments are they used around the world . A few different hiv drugs are being tested they thought they could possibly word theres an old drug used for things like malaria. Other drugs for flu has been tried out, but the w. H. O. Saying those dont appear to work as well, and the tests on remdesivir is recommended to be tested more. Were looking at sharp declines, almost 3 for the dow. Nasdaq composite down 3 , a lot of the tech names getting hit hard 11 out of 11 sectors in the s p are lower. Technology getting hit the hardest. Lets check in on some individual Market Movers zoom video is actually moving as fears of the coronavirus grows, that stock is higher, up nearly 200 since going public last april. Another bright spot is gold producer newmont, investors flocking to safe haven the gold. I guess the idea with zoom is more teleconferences as people cant go to work, especially if they cant travel to conferences. Joining us, the organization represents more than 300 million businesses first of all, if you could gauge for us what level of concern you have for global trade. Weve been watching this challenge since the first news, and the American Business community, and the chamber have been helping our friends in china get the type of equipment they have been using to help limit the spread of this vire. When you see it go to italy, singapore, you know it will spread around some, but with the experience we have gained. Theres a lot we can work on and be prepared for. My summary, the Business Community is working with our Members Around the country about being prepared, being careful, watching where you travel and keeping working. If we dont keep the economy strong, it will be very hard to deal with this challenge if we do keep it strong, without acting irresponsibly, i think well prosper. Here in the United States we have extraordinary capacity to deal with these issues, and well work very hard on it, and thank you for asking whats the level of exposure, do you think, tom, in various industries to china as the factor for the world pharmaceuticals, autocomponents, how exposed is the american industry to china were significantly exposed if they were to shut down their manufacturing. Now, you know, china has 1,400,000,000 people after they function, we have to work on the supply chain and the effort to move products from here to there and there to here, and to do so in a way that doesnt compromise our concern for the virus. Theres three or four industries that are going to hurt the shipping business, the recreation shipping business, airlines, it will take a bit of confidence coming back and a little more experience to handle the virus, and i think well get there. The vitality of these principal economies is critical not only to our country, but to the world, and i think its going to drive people together right now to handle this, and then well go back to our differences. Tom, when you speak to various members, do you get the feeling that any of them, whether its because of the coronavirus or the trade war more recently, any of them reconsidering that level of reliance on supply chains in china and asia more broadly . During the question of the trade debates its very hard to change supplychains back you know, its when you run a about ig company, you work are worry about risk all the time. For about six months before the end of the year, a lot number of companies thought we were facing a recession. Well, it doesnt happen. Were very pleased about that theyre coming back and getting more aggressive on their investment sijt a certainly every company of substance is thinking about this virus and how theyll deal with it were working together with the government officials, the medical people were making some progress i believe in finding some medicines that might be helpful. When you put combined energy of these Major Economies together, we will find solutions i just cant tell you when. How are your members preparing for the decisive victory of Bernie Sanders in nevada, and has all sorts of plans for Corporate America that would pretty drastically alter their behavior, whether its taxes or including employees on boards and various other proposals . Well, its very interesting there have been some surveys done in recent time about what percentage of the people that are supporting bernie understand and support, you know, the medical things hes saying on programs, federal programs, almost 70 of those people dont believe that they have to give up their personal insurance. And, by the way, anybody who thinking hell get the congress of the United States of any type of any party to get rid of the private insurance and all the Insurance Companies in this country, has very little understanding of how people react when its really their problem. Tom, i just wanted to ask you about the National Environment policy act your take on that and what youd like to see in terms of modernization and alteration of it this is a very simple issue that is supported by almost every industry in this country, and the government of the United States we have a circumstance here that lets in questions of infrastructure, in the questions of transportation, in the questions of agriculture and grazing, all of that, their work often takes three, four, five times as long as it would take to do the project. So you have circumstances let me give a local circumstance the purple line here on the metro, we have been trying to figure out what to do with that for 14 years people that want to invest in it are going to go away you know, were not that inefficient. Were not that unable, and we have got to make a simple series of changes that say we limit the time you can do this, but can you do it that both the government and the public see that might have to go longer, it doesnt make any sense to be fundamentally assistant with our money increasing the costs and leaves all the environmental benefits that we could achieve on the floor or in ways for five years . 14 years 30 years get over it. Tom donohue, thank you for joining us still to come well talk about the selloff, and why he says its important to consider alternative investments. Thats coming up later on the show were going commercial free into the close with about 34 minutes left in the trade. Tracking for our worth day in the s p in over a year well do word on the street now. Some calls related to the coronavirus. Jeffrey is recommending investors take profits, as Bernie Sanders momentum grows and causes a heightened concern to universal health care certainly see that in the insurers action today. And a commodity safe haven status with u. S. Yields are key gold up a bit earlier. Is gold worthy of a position in everyones portfolio sdpl this is the case in point you never know when it comes around, and the thing to like about gold right now the yield levels are really supportive of it once back into negative territory, and thats very supportive for gold. The other thing i would mention is health care stocks. I would probably take another view, that the thing about it, they have already discounted a po and then as we talked about, its going to take an act of congress to change something on health care meaningfully the fact that they are selling off, and we think thats an opportunity. Then they came back. They came back, but if you look at the valuations its typically where so, yes, they may have rallied, but from a valuation standpoint, theyre actually still pretty attractive position. Luxury stocks have been hit on the coronavirus threat. Robert frank has details for us. Milans big fashion week cut short when authorities restricted all access to the event. Now facing questions about stocking, and its close two museums. That stock down around 5 a today. Guys, back to you. Its also the supply and the demant problem, right . Then they rely on the consumer as well 80 of growth, so thats the demand side in china, already a problem. Now you have the supply side and production issues, especially milan, unclear whether you can get these people to the factories and staff them, even in the u. S. Remains strong. Robert, thank you very much the glom growth question becomes so much more pertinent, and whether i guess the key difference here is the central bank does have a bit of room to react. I dont totally discount that he will do something if you look at the tenyear treasury, it is essential applies a growth rate, and, you know, you can take that off the global gdp as well this is why i say a lot of this negativity is getting priced in. Chances are the u. S. Will not just go at 1. 7 , and cha