Policy while mayor is trying to get the minority vote. By the way, third in Morning Consult poll. And then theres this, Bernie Sanders, you think he looks sheepish on the flight there, why sheepish, because the socialist was flying first class, lets get to the market, nice way to open the show on valentines day i think, a long weekend coming up. Some traders on wall street are going to be thinking, wait a minute, do i want to hold stocks over long weekend, i cant fix anything until tuesday morning, who knows what will happen with the virus, in advance of that, we have the dow down just a point, not Much Movement there, s p down 2, nasdaq, im sorry, s p up 2, nasdaq up 14. All right, now this, china continues to report a surge in new cases and deaths from the virus. 121 deaths, chilling number for you, 1,716 medical workers affected since virus erupted in china, 6 of them have died. Carnival cruise lines have canceled 18 cruises in asia, lets get on with it, its friday, Varney Company is about to begin. What are you going to say to the audience . Thats rubbish. Stuart inferior sport. Fantastic sport. You are going to watch . Stuart nordic plays liverpool. Stuart we thought we would play that for you, in the past i have been down on nascar and down on daytona 500 and i will take it all back because our president is going to daytona 500, thoroughly taking it back and we have president of board of Patrol Council brandon judd, Tulsi Gabbard is on the show and steve hilton altogether on the show show today, check the futures real fast, minor lost for the dow, modest gain for s p and nasdaq, lets get to china and the virus, gordon chang is with us today. Phase 1 begins, does virus affect phase 1 . It certainly does, on february 6th, editor controlled by u. S. Daily, also on the same day you have foreign ministry, looks like a staged a question during press briefing on the same budget. By the way, you had the Chinese NationalOil Corporation invoke forcement on l g purchase contract and they are saying we will have nothing to do with it. Theyll be controversy as well, beijing wants to get out of this. One thing to remember, stuart, you shouldnt listen what the chinese are saying about the coronavirus. Chinese signed the deal on january 15th when they knew about the severity of the outbreak. So they knew what was going on, they signed it anyway, they shouldnt get relief. Stuart okay, now, would you say that china is really struggling to control this outbreak . Yes, it is. The numbers that you read, those are official numbers and for a number of reasons, they, i think, understate the severity of whats going on, first of all theres deliberate falsification because the narrative is that they can try to control it. A number of localities they lost ability to count bodies, you put that altogether, seems like the numbers dont give us a full picture of whats happening. Stuart perhaps more numbers will emerge this weekend, maybe. Maybe, over a period of time we will see whats actually occurring in china and we can make assessment whether those numbers make sense or not, the stories that we have heard show a much more severe situation than the official statistics would lead you to believe. Stuart could this break chinas economy, severe impact . Yeah, certainly. Anything is on the table right now. Oil demand is off 20 year on year, so, you know, you are starting to see all of the events that will be held in china for foreigners coming in. Those have all been canceled. The fair which is the major exposition for chinese exporters, the april session has been canceled. Thats an indication that chinese leaders dont think this is going to be solved by april and you have quarantines and all sorts of lockdowns an other parts of china being outside of province, so, you know, the chinese say they can stimulate it but they really cant for a number of reasons. Stuart ouch, gordon chang, thanks for being with us on a very important day. Lets get to your money again, slightly lower, slightly higher or nasdaq. All the commentary about politics and wall street focuses on well, what happens to the stock market if the democrats win, lets turn that around; what do you think happens to the stock market if donald trump wins a second term . Well, first of all, i have to thank you, you were so kind to give me big box of chocolates, i dont think i can eat all at once. Stuart what, what . Whats that from . I thought you i got this big becomes of chocolates. I guess it wasnt, all right. Stuart there isnt a generous bone in my body, jonathan, get on with it. Lets start politics, the fact of the matter a lot of people predicted the stock market would crash under President Trump, of course, it hasnt done that, when you look at history, no correlation between a Political Party and strong stock market, jimmy carter had a better market than gerald ford and Ronald Reagan had a much better market than kennedy, theres a correlation, strong correlation between prosperity, stuart, and economic freedom, Political Freedom and the democrats even the Michael Bloomberg and buttigieg, supposed centrist, education, health care, energy, sort of the extent the policies are enacted inevitably they always fail and they are the ones that drag down Economic Growth and economic at large. Stuart i think youre right, quick prediction from you, when do we hit 30,000 on the dow in. Only a couple from the 30,000, nasdaq is overbought as we have seen it in decades and even the s p has had a bangup 2019 and 2020, i think we will hit 30,000 but as we say now a great time to get your financial house in order, given how far and how far the market has come. Stuart all right, jonathan, sorry, it wasnt me that sent the chocolate. I will enjoy them regardless. Stuart yes, you will. A federal judge has ordered the pentagon, stop work on the jed icloud computing thats award today amazon. Lauren it is a win for amazon, 10,000,000,000. 10year contract to modernize the troops and a federal judge issuing this injunction essentially siding in the limited way with amazon, amazons argument here is, look, President Trump is bias against our company and Ceo Jeff Bezos who also owns the Washington Post which is political of him and the personal beliefs are affecting political decisions, so the pentagon says the biggest loss for this is the troops who want that technology to improve their capabilities. Stuart i can see that entirely. Microsoft having hit 190 i think last week because of jedi shift right there. Individual stocks that are moving, roku, rosy forecast, nice increase in revenue, look at them go, up 8 . Expedia, they reported strong profits, they layed out a costcutting plan, the market loves that kind of stuff, they are up 12 and tesla, they are going to sell 2 billion worth of stock, i think 767 is the price they are selling at, the market for tesla stock right now is down, 3 , you are down 26 bucks at 777. Overall, we have now turned around just a little, fractional gains for dow, s p and nasdaq at the opening bell this morning. Health care, that was supposed to be the democrats strongest issue, wasnt it, they are all over the place on it, even aoc is admitting that Bernie Sanders may have to scrap the medicare for all policy. How about that . We are on it. From the failing impeachment to the disastrous iowa caucus, things are looking pretty positive for the president , tammy bruce joins us next hour, shes written an article saying february will be known as the month when the president got reelected, dramatic stuff, Michael Bloomberg a new way to attract new millennials, and hes paying for them, we will explain it all after this. Stuart Parent Company of sharpy, the dow down 7 on that, we have nvidia, they said they could take hit on virus but their cloud is doing well, you do well with the cloud, up you go. 6 higher for nvidia who has had a terrific run recently. Lets figure out how virus is affecting retailers, gerald, our retail guy because hes good at it, can you summarize the impact of retail because of this virus . I dont think the impact to have virus should affect equity prices even a little bit thats because i have confidence in fleesability of capitalism and also confidence in our medical system and the quality that we have here, in the shortterm there wont be much affect on retail at all, people are still going out and shopping, the only people that might be affected luxury store that might lose the chinese tourist who have been driving sales on fifth avenue, most retails will be fine in the near term. Not yet and china may get back to work, even if they dont, like the tariff discussion that we had earlier last year, u. S. Retailers will respond, they will be flexible, theyll find alternative sources, a few different categories, by in large no affect at all. In the medium term, and a lot of people get sick, you could have affect in shortterm during that period. People Like Department stores will hit harder as more consumers shop in the internet because you dont have to go out and meet other people when you shop on the internet. In the longterm, we will have treatments, vaccines for this, nothing is going to happen, the only thing you will see china will get hurt because yet one more reason to diversify your sourcing away from china. Stuart let me summarize it like this, not much impact on u. S. Retailers from the virus, i think i could say that from you, right . Yes. I would agree. Stuart we got the report 8 30 eastern time, retail sales in january up 0. 3 , that doesnt mean much to me, what does it tell you . Well, its a continuation of the trend that we have seen before, what i look at are year over year sales which are up continuing the healthy pattern that we have seen for over a year now, almost 2 years now where consumers on fire, they are spending their money, some sub numbers in there, department stores, again, very weak, ecommerce is strong, some people in stories made a lot of the fact that clothing sales, i wouldnt make anything out of that at all. A very warm january, also january is kind of a cleanup time for apparel, a lot of mark up and i wouldnt read too much in apparel number even though consumers are buying hard line than apparel stores. Stuart excellent summary of two basic questions we have to ask. Mr. Storch, you really are good at this. You can accept the complement. Valentines day, thank you, gerald, we will see you again really soon. [laughter] stuart im trying to get into valentines day kind of mood and its not easy. Lauren its hard, im with you. Stuart u. S. Government charging hauwei. Ashley u. S. Government accusing hauwei of deliberate and repeated theft of intellectual property of those companies who have offices within the United States, this suit goes as far as to say that the Company Launched a formal policy that gave bonuses to employee who is employees who obtained confidential information with competitors, this company has done work with iran and north korea, they tried to destroy and conceal the evidence of their doings in iran, this follows on the other story we had this week of the back door access, the claim that hauwei has, has an ability, if you like to get into the back door and look at peoples information. Stuart america is going after hauwei. Got it. Now, billionaire candidates, i think we should call them the 60 billiondollar man, mike bloomberg, i dont understand this, im told that he has flooded instagram with memes, advertising 2020 campaign. So, lauren, can you explain this to me . Lauren hes using 60 billiondollar fortune to go where the voter is, the millennial, they are on instagram, i noticed these strolling through instagram, youll see a miami, its silly, once said something could you photo shop me in an image to look cool for Democratic Party and you see image of him in shorts, totally silly, its either catchy and defective or awkward, but also effective. So people are liking this, weve never seen memes as far as i know in politics, president ial politics, and hes trying to go where that young voter is. Its catchy, people are seeing it or awkward and people are still seeing it and talking about it. Stuart i do understand. Lauren i give it an a, its weird but people are talking about it and seeing it more importantly. Stuart whats the whole bowl of wax, thats what you want to do. Ashley wants to be cool. Stuart not reaching people like me on instagram but the millennials. Lauren hes got a lot of money. [laughter] stuart moving on, we turn south for the dow, up 9 nasdaq, pretty flat i call it. President trump, well, he loves to talk about how much your 401 k s are going up under his administration. Watch this. The 401 k s are doing unbelievably well. The stock market has reached alltime high, everybody is getting rich. Stuart i like that one, we have the numbers to back it up, we will show it to you right after this break. [ fastpaced drumming ] [ fastpaced drumming ] and my side super soft . Yes with the sleep number 360 smart bed, on sale now, you can both adjust your comfort with your sleep number setting. But can it help keep me asleep . Absolutely, it intelligently senses your movements and automatically adjusts to keep you both comfortable. And snoring . No problem. And done. So, you can really promise better sleep . Not promise. Prove. And now, during the ultimate sleep number event, save 50 on the sleep number 360 limited Edition Smart bed. Plus 0 interest for 36 months. Ends monday 401 k s are doing unbelievably well. The market hit alltime high, 401 k s and jobs. [cheers and applause] i look at 401, who has 401 k s here, right . We have a stock market record, that to me is not stock market record, record for 401 k s. [cheers and applause] look at 401 k s, who is doing well with their 401 k . Stuart let call that, this is the 401 k block. I have the numbers from fidelity about the number of millionaires, people with 401 k s worth a million bucks. Ashley 441,000ira and 401 accounts have a balance of a million or more, that is a record, now, what about the average balance for the last quarter, the average balance was 112,300, that is up 7 from the last quarter, very quickly record number, 35 of employers automatically enroll workers into a savings account, i snow stu, thats something that youre very keen on and its having an impact. Excellent, excellent. That gives lie to the idea that the stock market rally doesnt help everybody. Ashley also going up. Dow will be up 11 points at the opening bell and we will take you right there after this. Stuart there you, clapping, cheering, and the bell will ring and this market will open in 10 second time, altogether, if the bell stops ringing, the markets start, we are up, quick check, please, the dow has opened with a gain, very modest gain, we are up 15 points right there. Its a roughly even split winners and losers, not exactly a stiller opening on a friday morning. Muted. Stuart thank you there, nice valentines day to you too. All right, check s p 500 please, where is that . 3 points, not much. S p up on the 8 points. Where is that . Down, thats good. That moans that money is out. Ashley no the way , no the other way around. Stuart price of gold, up 4 bucks, oil, what do we have there, we have 52 par barrel. Now, if you look closely you will see that three major indicators are up 1 or more this week, david, that tells me the market, sameole theme, the market just wants to go up, youre with me. Absolutely. Coronavirus in our markets is a noshow story. Everyone tole us 2020 would be good and 2019, check, nasdaq up 10 in the first six weeks, more than 1 a week, even s p 500 nearly up 5 , thats 1 a week, and so we cant stuff to go up but supported by the fundamentals here. 3day weekend, susan, i presume theyll be chatter, what are they saying down there. The market will be telling today. Do you want to pull into 3day weekend, unknown, fluid events like the coronavirus, so far what im hearing i think itll be cold at end of the day, we are trading at close levels, 5,000 new cases reported last night, 14,000 spike earlier this week and retail sales were not bad by the way for the month of january, industrial productions slightly worse than expected but overall if you take a look at the economy still going strong in the u. S. And earnings by the way have come out much better than anticipated, 70 of the s p has reported an you have seen profit grow 2 instead of falling 4. 2 which was expected, the companies are still making a lot of money. Susan, we will get back to you in just a second. I want to show you Carnival Cruise lines, this is something that i really could not understand because this thing was actually up yesterday, its one of david deets stock picks, hes here to answer for that. As i understand it they will cancel 18 asian cruises, that would seem to take a big chunk out of their profitability, you still like them . Absolutely. From an important point of view never waste a good crisis. Trading at 10 times earnings, that means when you buy carnival today you are paying for the next 10years earnings, no one is saying the coronavirus is going to last more than 6 months to a year, if i can get a 16 pullback, hey, look, the reality is largest Cruise Company in the world and whenever theres a crisis affecting the industry go, with the biggest, go with the best. Stuart to you its a bounceback stock, Carnival Cruise, i can see the logic there, southwest, they are canceling 400 daily summer flights because of the max jet still being grounded. Thats the reason . This is the second summer the max, 737 max will not be flying southwest, they have the most, they have canceling over 370 flights per day through august, we said earlier this week, boeing is actually flying the jets but that does not mean they have faa approval, that does not mean pilots have been trained an does not mean that biggest customer is ready to fly them. That means higher ticket prices, not as many planes. Stuart i havent been in a flight thats not jampacked full. Southwest stock is up not much but 58 a share. We like to follow tesla very carefully because they are all over the place, elon musk will become the worlds richest person in april if teslas value stays at 100 billion, hey, susan, come back on this one, i dont get it, the richest man in the world if it s