Appear to be lockdowns in a number of italian cities, thats reason enough for not only in this country but certainly in europe for hotels, airline stocks, casinos, and cruise lines to be taking it on the chin here. What is interesting, before i get the read here in the United States, is what has happened to European Airlines like easyjet. That is the discount budget carrier. That is down an excess of 13 . Ryanair, 13 . Deutch lufthansa close to 10 . Air franceklm, about 9 . I could go on but just to i illustrate what is impact here on percentage term is bigger impact there the selloff is revisiting session lows. Right out of the gate we were down close to 1000 points. Right now, the dow underwater for the year with 922 point hit. Deirdre bolton at New York Stock Exchange. Reporter neil, were negative on the dow and awfulally close on s p 500. We need to hit 107 lower to completely wipe out the gains from 2020. Let me tell you some groups. You covered some weighing on these markets. If you look at any techrelated stocks down across the board. So you have chipmaker stocks, micron, qualcomm, nvidia, Texas Instruments are weighing on sector most heavily. Yet you have tech overall. Weve been talking about amazon and apple. Apple saying last week sales this quarter would be less than what the Company Forecast because of disruptions to the supply chain. Apple gets 17 of its revenue from china. Amazon we reported this morning, actually it was the new york times, amazon is sending out somewhat urgent emails to some of the companies that supply it for amazons prime day. You may say, neil, who cares, that is in july . In 2019 amazon locked billions of dollars in sales. Sold 175 million items in that 48hour period, the most, if you like profitable twoday stretch for that company. That event is very important to them and they are trying to address with some of their suppliers potential disruptions to the supply chain. Airlines, you mentioned some european ones, im following some of the u. S. Ones here. Delta, american, jetblue, down across the board. Since you mentioned European Airlines, quantas, not obviously a european airline, saying it will log a loss of 100 million in the first half of fiscal year. Based in europe, klm air france is saying more possibly in the first half of the year. Many airlines all over simply canceled flights to china. You were talking about italy as well. Traders on the floor here as well, outside of asia, italy is the number one spot with the highest number of infections. Outside of the asian region, it is italy. You talked of course about, we had fashion week in milan. Many shows outright canceling. Lascala shows outright canceled. Carnival, that was big blowout event, in venice, all those celebrations have been canceled. Northern in the country, lombardi, that region, schools are closed, public venues are closed. So this effect is really being felt very strongly in italy, a place with the largest number of infections outside of asia. We certainly saw that show up, the concerns show up, italys market closing down lower than 5 1 2 . Neil, to your point this virus really is beginning to be felt in all kinds of companies, european companies. We knew always asians would be affected. European companies, american companies. Back to you. Neil yeah. That is what made them move to the european continent. Great report as always, deirdre, thank you very, very much. Explain what is going on italy, why it unnerved investors, prompted equivalent of our Dow Jones Industrials to slide 5 1 2 , were these reports 10 italian cities are in their own quarantine. That is the first of such significance outside of china. I want to flip around say, not all awful. Well, money always find as place to park in the interim. Right now gold is a huge beneficiary. It has been through thick and thin. In other words through dramatic developments and not so dramatic developments. Gold the beneficiary, in and out of almost 8 year highs. Treasury notes and bonds is leading to a collapse in Interest Rates. In fact were getting very, have he close to alltime lows in Mortgage Rates. A 30year mortgage right now is fetching a little bit under 3. 25 . Think of that. I know i like to remind people who wonder how old i am that is what my wife were paying per day when we got our first mortgage. Not exactly but that gives you a idea how low Interest Rates are. Many look at the development sign of a floor to stocks here, especially when you compare the yield you can get on a lot of stocks with what youre getting on a bond. Eventually people say you know what . I like those stocks. Were not quite there yet. A guy that knows history very, very well. I think the best head of the New York Stock Exchange they have ever had, dick grasso joins us right now. Dick, very good to have you with us on the phone. Neil, always great to be with you. Neil thank you, my friend. What do you think of this . You have covered more and been there at times of big selloffs, this is feeding off itself as we revisit lows we reached this morning, is it just the coronavirus . Is it a Good Opportunity for many to take their profits and not get too greedy, capitalize on the gains they have had, what . Well, neil, a couple of things and most importantly for your Retail Investors who are watching, traditionally a Retail Investor reacting to a day like today inevitably does the wrong thing. They sell. Remember, were down 3 and a fraction percent. As you pointed out earlier on october the 19th, 1987, we were down 22 in one single day. Neil right. If you had bought on that day, if you had bought in 2001, 2009, you would be smiling. As a matter of fact, if you had bought the day that donald trump was elected you would be smiling from ear to ear. Retail investors have got to simply take a couple of aspirins and call neil cavuto in the morning, all right . I would say do nothing at this point. Clearly the neil when you say do nothing, what do you look for, whether this feeds on itself . I remember when you reopened the markets after 9 11, you were prepared for the selloff that ensued, not only the first day but the few trading days after that but you had confidence things would stablize. They ultimately did. That is a scary ride for a lot of folks though. Well, youre right, neil, im saying do nothing for those who are owners of stock and considering should they make a sale now . The answer is history will prove you to be wrong if you do. I think, what im suggesting is that investors, whether it be, or longterm Capital Appreciation for the education of ones children, whatever the objective was, that they sit down, after the close of the business night, sit down, talk to their financial advisors, talk to their family members, ask the question, why are we in this market . If youre in this market to educate in college terms the very expensive tuition of a harvard education, in 12 years, well, harvards not accepting 8yearolds. So just look away from what is happening now. I would suggest, neil, that how many times have you and i said to ourselves, after the election of donald trump, gee, what a great opportunity i missed when the dow was at 16,000, 18,000, 20,000 . Now it is come in a little bit. It is down 3 . You know why not, dip your toe in the water. Do the reverse of what Retail Investors are inclined to do . If you want to invest a dollar in the market, put a third of it in the market today. Put a third in a week from now and the other third a month from now. I think you will be a happy investor at that point. Neil Warren Buffett of all people echos your theme. He says its scary what is going on but he wouldnt sell any stocks. Longer term out look for stocks he said in an interview today was still favorable. Do you agree with that . I guess the definition would be what is longer term . Neil, i would never disagree with warren, having called on him in 1987 when the stock was 2700, okay . Dick, it is overpriced. Where is now, neil . 340,000 . Neil right. That guy always forgets, he never splits, does he . If youre talking to investors, again a lot of time, it really depend on their age, right . I mean if youre an older investor and you mark long term, in terms of what am i going to have for lunch tomorrow. That is one thing. But if youre a younger investor and you have a multiyear time horizon, five, 10 years, how do you advise them . Younger investors have great opportunities on days like today. You have to be stock specific. If youre not knowledgeable on specific stocks, you buy the index, okay . Neil right. If like, me, not you, neil, im, im own the 17th hole at this juncture in my life, okay . Youre worried about next month, you shouldnt be in the market or you should modulate the risk you have on the line. I cant tell you the number of people in the Business World and in the investor world who i have talked to who said, my god, why didnt i buy stocks when donald trump was first elected . Remember that night, the night of the election, the market was down six or 700 points and neil future were tumbling, right. Futures were tumbling. They quickly reversed. They quickly reversed. I got calls from friends, what should i do . Back up the truck and start buying. Neil let me ask you this. We have a 11yearold bull market, economic boom going. A lot of people say it is due for at the very least a correction. Do you agree that were due at least for a correction, whether it is 10 . Gets a little nervewracking people hear possibly of 20 . That has happened. It is not the end of the world, but what do you see . In any secular bull market there will be corrections. Were in a secular longterm bull market. Use the pullbacks as great opportunities to buy great companies. Neil wellput. Wellput. Dick grasso, see you on the 18th hole then whenever we see sort of putter around there. Im a lot older than you, neil. Neil please. Youre on the front nine. Neil i wish i were, my friend. Dick grasso, thank you very much for that. To put a little in perspective, you always want to look at both sides of this. Money finding a safe place to buy bonds and gold, buoyed by the talk were getting out of the housing industry, Mortgage Rates already better than 4year lows. A 30 year mortgage will set you back all of 3. 25 . This could lead to a new boon in refinancing. I was talking to a mortgage refinancing expert earlier this morning who was saying, he sees it distinctly possible we could see triple digit yearoveryear advances, those applying to refinance homes theyre already in or to get a second loan on a home theyre already in. Whether that is a wise strategy or whether youre adding more debt, it is cheaper to get that debt today. In the past that sometimes provides a floor to stocks or otherwise it makes the whole market look more affordable. Were going to get into that and why that can work to your favor as an investor right after this. Theres smart and then theres street smart, like a hybrid with best in class epa estimated range of more than five hundred eighty two miles. And ford copilot 360 technology to help you outsmart some of the things youll encounter on the road. With more available second row leg room than a chevy suburban. This is the completely reimagined, street smart 2020 ford escape. This is the completely rowithout the Commission Fees and account minimums. So, you can start investing wherever you are even on the bus. Download now and get your first stock on us. Robinhood. I learned about myuse grandfathers life. On ancestry and it was a remarkable twentiethcentury transformation. He did a lot of living before i knew him. Bring your Family History to life like never before. Get started for free at ancestry. Com oh no, here comes gthe neighbor probably to brag about how amazing his Xfinity Customer Service is. Im mike, im so busy. Good thing xfinity has twohour appointment windows. They have night and weekend appointments too. Hes here. Bill . Karolyn . Nope no, just a couple of rocks. Download the my account app to manage your appointments making todays Xfinity Customer Service simple, easy, awesome. Ill pass. Neil all right. Revisiting session lows just a couple minutes ago. We had dropped over 1000 points on the Dow Jones Industrials. As eyepopping as that is, that is 3 1 2 of the value of the dow 30 stocks collectively. That is a big number. Im not minimizing it. But as i willlous straighted in the prior segment back in october of 1987 we fell a little more than 520 points. At the time representing about a quarter of the dows value then. Numbers are much bigger. Points are eyepopping but in percentage terms, theyre still eyepopping but not as. I want to let you know foreign markets the world over under same selling pinch, asian markets, european markets, even the indian stock market where the president is visiting today. The index down about 2 , the rough equivalent of our Dow Jones Industrials. The president visiting there and talking up renewed alliances between ourselves and the country of india, including a big trade deal for defense orders. The president earlier today. I am pleased to announce that tomorrow our representatives will sign deals to sell over 3 billion in the absolute finest state of the art military helicopters and other equipment to the indian armed forces. [cheering] neil all right. That might be the start of something promising because trade talks between our two countries are expected to get a little heated. You wouldnt know that with the leaders today but it could get that way. Former u. S. Ambassador to india, Richard Bremer with us. Ambassador, good to have you. Good to be with you, neil, thank you. Neil how do you see the trade talks going . It is probably a good positive sign the defense deal but obviously some rough areas to get into . How does it play out . There is some disappointment to the fact that the two sides have been talking nearly for two years and this was an actionforcing event to have a head of state visit to come away without a deal but i also think it is important to put this visit in context. India declared its independence in 1947. Since 1947 only six u. S. President s have visited india and we spent most of that time, that 72year period since indias independence really on two different sides of the cold war as india was aligned with the soviet union and we took, obviously a very different path. So the modern relationship with india starts in about the year 2000. From that point forward we have made pretty incredible progress. Its no surprise that deals like these are very, very difficult. Now the defense deal you mentioned has been in the works for several years and its good that one is finally getting across the finish line. We want india to have a strong, capable military. Neil im wondering on the other areas, the argument has been, certainly among u. S. Trade officials that we always complained about china but that india is the one that is really ripping us off to quote one of them. Is that true . I dont think thats fair. I think, again, if you mark the start of the u. S. India relationship at about the year 2000 with president clintons visit our trade ties have surged. Were now at about 150 billion. Of course our people to people ties have surged. India traditionally had a closed market. It has been a difficult market. That is obviously changing as india gets more connected with International Trading system and our businesses do more trade but i dont think it is fairnessly talking about ripping one country off. This is a country that is a democracy in a difficult part of the world that is becoming more open and more, kind of connected to the International Trading system but it will take time. It is certainly not a trait line. It is a difficult road to hoe as we just talked about with two years of trade negotiations coming up with very little. Neil all right. Ambassador, thank you for taking the time. I do appreciate it, sir. Thank you. Neil youre not imagining things at the corner of your screen seeing this broadbased sell off in the Dow Jones Industrials. Underwater for the year. S p underwater for the year. The nasdaq still up 4 on the year even with todays selloff. We should look at the health care sector, this might be Bernie Sanders postnevada strong caucus play, that he wants to all but shut them down in something for medicare for all. Whether you think he is getting nomination, whether he has a chance to be elected president of the United States. His strong harsh words for the industry, weighing on a lot of Big Health Care providers, united healthcare, a host of others, some of the big, from tenet healthcare, aca, some of the others are very big in this arena, theyre also taking it on the chin, that might be more directly related to Bernie Sanders than anything happening on the coronavirus front. 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