Final hour of trade for investors who have been watching all day long this pretty significant selloff. Live from the floor of the new york stock exchange, we are talking to traders, market gurus, all kinds of people who will help you deal with this hour and with the money. I want to show you a couple things. Dow, s p and nasdaq, we will clock it right here, because you are seeing the selloffs. We are off the lows of the session. We do have the Dow Jones Industrials down 821 points. When it opened, it did absolutely gap down but they are looking at the moment at the s p down 89 points. It had been down triple digits. I will tell you that much of this started with the coronavirus spreading to unlikely countries. We are talking about iran and italy. Investors, very concerned, of course on friday on the claman countdown we told you wait a minute, there is this hot cell of cases of the coronavirus in northern italy, an area called lombardi. Sure enough, what happens, we are looking at real fear because on that day, friday, 16 people had been sickened. Now we are looking at 229, just over the 72 hours of the weekend. Heres a number to watch for the Dow Jones Industrials. 1175. If we see a loss of any more than that, that would be the all time record point loss, not percentage, point loss. You have to go back to about i want to say february of 2018 when we saw that. What had caused that back in february of 2018, fear that the Federal Reserve would be hiking Interest Rates. We do not have that fear right now, folks. We want to tell you as we look at fed funds futures, this is the area where of course traders bet on the likelihood of a fed rate hike or cut. Well, now look at this. We are looking at a fed funds futures indication, if we can put that up, of a cut of about 80 chance there. That what were seeing, guys . Its really changing moment by moment. So 80 chance that we will see at least a quarter point cut by the july meeting. That means there is an incredible amount of fear and the Federal Reserve is going to rush in possibly, at least thats the betting, and prop up this market. Even with the new global cases that we have seen in italy and iran, this is really starting to get worrisome. Thats why you are seeing such concern here. The u. S. Has confirmed 53 cases of the coronavirus. Thats the United States. We are watching this extraordinarily closely but putting aside the fact it is now spreading to quite a few continents here, we just havent seen many cases in africa, im pretty sure not any cases in south america or alaska which is not a continent but certainly separated from the United States. Heres what is a real worry for a lot of people. That the World Health Organization is punting on calling this a pandemic. In the past couple hours, the w. H. O. Came out and said yes, were concerned but we still dont believe its a pandemic. Let me tell you something, wall street is not waiting around to see if that is the case. They believe it is a pandemic. All you have to do is look at the red on the screen. Although i would point out, take a look here to the left. Dow jones industrials down 795. Looks like we are struggling and trying to come back off those lows of the session of a loss of 1,079. Coming up, we have all kinds of triggers in this hour, so we are going to go commercialfree for the entire hour. We will bring in these top money gurus, gold bug, coronavirus experts, all you need to know. In the meantime, want to talk about the vix, the volatility index at its lows of the session, down about 44 , hitting a level of about 25. We look at the vix, i believe its hovering around 24 at the moment. Just off the lows of the session. Let us bring in our floor show traders right here on the new york stock exchange. I am joined by sarge. Stephen guilfoyle, our good buddy. Also luke ribari and peter schiff, who of course is the gold bug. You are kind of the guy of the hour here, because gold in the Early Morning session had spiked significantly. Its coming up off those highs, though. You see this . Its scratched back about 30 bucks and were not off as much as we were earlier. Whats going on . Well, this is probably the most unloved bull market i have ever seen in gold. We have been climbing this wall of worry so i think too many people look to take profits. They really have no idea how high the price of golds going to go. Its not the coronavirus thats driving it, its fed monetary policy, especially the additional easing that i think the markets are correctly starting to price in is going to result from the coronavirus. Liz okay. I want to bring sarge in. You heard what peter said regarding gold is the trade of the moment, definitely when you are looking at that, although tell me what you are seeing with the markets and what you expect in the next call it 55 minutes of trade . I would love to see us hold the levels were at for 55 minutes. This would be good enough on a day we were down more than 1,000 points on the dow. Peter is right about the fed, because i heard you mention the fed funds futures before. Right now, they are pricing in a rate cut on the short end of the yield curve for april, another one for september and a 44 chance of a third cut in december. So thats kind of significant. Although i dont see, being i think that the coronavirus is such a huge part of this, this is not a standard selloff. I really think this is something that investors have to get back, they have to step back liz what are you buying, then . Look, you have apple down more than 4 . I bought apple this morning. Liz what else . I bought amazon and disney this morning. All three of these levels are trading higher than when i bought them. I bought them for all technical reasons. I do believe these are good businesses, although some of them may be overvalued in the historical sense. Thats not a concern right now because if this turns into a trade, not investment, i can still make money. Liz luke, i want to get to you. What is the metric you are watching for that will give you either a green light flashing or there is a further leg down on this issue . One of the metrics is going to be what you talked about earlier which is the vix level. Remember, normalized vix, somewhere around 16 to 20 for some people, 18 to 24 for other people, we are just getting back to a normalized vix. Volatility was so low. Lets see where the vix goes. Thats one of the levels im watching. I also want to watch the chip stocks. I want to look at the low of the chip stocks and see where they close out. Thats going to be important because liz be clear about that. Lets be clear about that. Because they have the most exposure to china, semiconductor stocks, i believe advanced microdevices was hit the hardest earlier. But also, also they are going to make the biggest comeback and also, we are not going to use less chips, ever. From now until the end of history. Unless something huge happens. So the chips are going to be what you want to look at and i also want to look at some of the biggest stocks we have talked about, what google is doing, some of the biggest dividend paying stocks, are they staying steady because their Balance Sheets are stronger than a lot of weaker stocks. Liz okay. Peter, gold is at a sevenyear high. But guess what is outperforming gold and there arent a lot of investments that are outperforming gold right now, tlt, an etf that basically mimics the 20year treasury. I believe that thats having a better day even than gold. What do you say about that . Explain to our viewers why you think that is. Well, i think anybody who is taking refuge in longterm u. S. Government bonds thinking they are a safe haven is going to lose a lot of money. In the short run, its a crowded trade. People pile in there. What the bond market is doing is they are correctly anticipating future fed rate cuts, but not because they are appropriate, but because thats what the fed is going to do. If you remember, back in december of 2018, when i was on your program, just after the fed hiked rates for the last time, thats the last time you saw the stock market this week, i said the next move the fed would make would be a cut. I said they were going back to zero and that they would go back to qe. They have already gone back to qe. We are not quite at zero yet. The coronavirus is simply giving the fed an excuse to do what it was going to do anyway but it is not going to solve the problem. The fed is not going to cure the coronavirus. Its not going to cure the economy. What the fed is doing is going to make the economy sicker and ultimately, the inflation that they unleash is going to destroy the bonds that people are buying. The real safe haven is gold and thats what people should be buying if they really understand the problem. I think youre spoton with saying what the fed is doing and what the bond market is doing is pricing out future growth. I think they are pricing out future growth and even future inflation the way they measure it. Liz you dont throw all stocks out with the bath water that we see today. Check the Dow Jones Industrials down 794. Go ahead. Oh, no. Actually, growth names, once we settle back into an environment where growth is hard to come by, what have we got, the tenyear, the threemonth, the inverted curve is yeah, thats really, thats really negative. You are going to end up with [ speaking simultaneously ] remember, though, u. S. Stocks are extremely expensive even if there was no coronavirus. The u. S. Economy is long overdue for a severe recession anyway and we have got the prospects of berniened sanders being the ne president. There are scary things out there when you have an overpriced market. Liz luke, what about that overhang that we have when you are talking about overbought stocks . This market is still near record highs. Liz, i mean, i have been saying it, i have been saying that the fed has taken growth from several years ahead of time and brought it back, that rates are too low. I dont think the fed cutting rates is going to do anything or that much more for the market. Peter is saying they are going to cut rates. They expanded their Balance Sheet which is the same thing. They werent cutting rates, they expanded their Balance Sheet which is kind of the same thing. Another area that a lot of people i think are looking at mistakenly and taking it wrong are commodities. They are saying china commodity demand is going to be down, some commodities are getting hit. Commodities are going to be harder to produce, harder to transport. Look at unleaded gasoline today in relation to oil and the oil stocks. People should keep that in mind. Precisely. Liz gentlemen, hold on. Quick, peter. Really fast. We are looking at we are getting a supply shock so the supply of goods is going down, at the same time the fed and Central Banks are creating more money which artificially inflates demand, that exacerbates the problem. We get stagflation out of this. Thats a disaster. What if we make more stuff in the u. S. Now . No, were not. Migrate back to north america. It would boost wages in the middle class. None of thats going to happen. We dont have the capacity to do that. We dont have the infrastructure. We dont have the supply chains. We dont have the Trained Work Force for the factories. Thats all fantasy. Liz okay. Thats it. No fantasy here on the floor of the new york stock exchange, i can tell you that. Thank you all very much. See you in a minute. I do want to take a walk over here. Remember when you just heard sarge say that we were maybe seeing a loss of about 795. Now we are down 827. Im talking to traders who every single minute of this session say it is the final hour of trade, particularly the last 45 minutes, where you may start to really see some action and why is this all happening today, why did we see an earlier 1,000 plus point loss on the Dow Jones Industrials . Because of the coronavirus spreading, make no mistake, to italy and iran and south korea is definitely spiking up as a hot zone. Let us bring in some of the experts here who are talking about what is happening here and one of them is dr. Michael osterholm. Hes at the university of minnesota but more importantly, hes a very major expert when it comes to the transfer of all kinds of diseases, whether it is hepatitis b or hiv, between the transmission between Health Care Workers. Welcome. Thank you for being here. Why is the w. H. O. Saying this is not yet a pandemic . First of all, there are both political and Public Health considerations to any kind of a definition of pandemic. In 2009, the w. H. O. Got widely criticized for declaring that influenza situation a pandemic when in fact, it was, but it wasnt as severe. I think what we have to do is just understand what makes up for a pandemic is the worldwide spread of a new disease thats of significant importance. This virus is transmitted worldwide, its transmitted like influenza virus, which is like trying to stop the wind, its not possible. You are seeing the kind of transmission around the world now that we predicted several weeks ago, if in fact this was going to continue to spread and it is doing just that. Liz italy, on friday, i noticed thanks to lori garrett, the author of the coming plague. The Pulitzer Prize winning medical reporter, she had flagged the situation in italy and its the northern part of italy, i dont know if you saw the milan, probably the milan stock exchange, youre not watching on a daily basis but we here at fox business are, it tanked 5. 4 and in doing so, it knocked 30 billion euros, about 31 billion u. S. , off the value of these italian stocks. So lets quickly talk about the spread in italy. On friday, when we saw this, we talked to our viewers about it, there were 16 who had been tested positive. Now there are 229. What does this tell you about how quickly this can spread . First of all, i wouldnt concentrate on italy. This is going to happen worldwide, including the United States. We just had five new countries today reporting cases for the first time. Within four to six weeks, you are going to see much more widespread transmission around the world. Somehow people think the u. S. Is going to be spared. It is not. We are going to see a worldwide outbreak of this and i dont care what you call it, we need to get ready for it. We need to understand our supply chains, on an international level, and what that means for critical lifesaving drugs. We understand if we close borders, we are going to hurt ourselves more than help and just dont concentrate on one country. Look at the world right now. Its in a coronavirus issue. Liz doctor, i do want our viewers to understand what you guys know that the world does not. One single case can, in six days, equal how many cases . Because i saw, youve got to tell me, im hoping this is wrong, i saw that one initial case can spawn more than 3500 cases in sort of this triangulation of this person passes it to two others, then to another two, et cetera. Right. If you look at the transmission about every six days from one person to another, and you talk about doubling that, meaning thats been the average number of cases that one person will infect, you go from two, four, eight, 16, 32, 64. Thats not a lot of cases initially, particularly since 80 will be relatively mild. But by the time you get to the 10th or 11th generation, you are now talking about 3500 cases. Whats happened in italy, whats happening in countries around the world, is they have now had subsequent transmission four, five, six, seven generations, and now we are seeing these cases poke through. When you see five Health Care Workers already infected in italy when the outbreak was first understood to have occurred, you realize that that had to be transmission that occurred over several weeks, not just this past week. Liz okay. Then i do have to ask about the diamond princess, the ship, luxury ship that was docked off yokahama, japan. What happened there . Because they definitely quarantined so many people but by confining them, it appears that hundreds got sickened when only a handful were originally sick with the coronavirus. They were breathing recycled air. Can you not deduce from that as we look at the Dow Jones Industrials falling 843 points right now that the fear is in here . Well, first of all, we will get through this. We have to keep remembering that. But its going to get a lot worse before it gets better. The diamond princess situation you talk about is one where, in fact, people were unfortunately kept on that ship. They should have been taken off. It was a cruel human experiment. We know that ships are very good places to spread germs like this. But i think at this point, thats a lesson learned, how infectious this virus is. Liz okay. Doctor, thank you for your expertise. Folks, if i have to pull out a headline, he says the United States will not be immune to what just happened in italy. So as we look at all that happening, i want to quickly take a look at whats going on. When you look at europe, europe is closed right now but you look at the dax, it lost 544 points. It was a very, very rough day for all that was happening in europe having to do with whats happening in italy. I want to quickly talk about oil, because folks, as we look at oil in the aftermarket session, its less about the price of oil which went down as low as 50 and change and i believe we are slightly off that at the moment, and more about margin calls. Sounding the alarm about margin calls, we will explain what that is because it could make the market cycle much lower, david greenberg. David was a nymex trader for decades, on top of that he was the risk manager for his company on days like this, on both the persian gulf wars and of course, 9 11 post when the markets finally reopened. Good to see you. Thank you so much. Quickly explain why margin calls, the phones may be ringing right now to people who borrowed to buy a lot of stock or the commodities. Always good to see you. As you said, you and i have been through a lot of these things between the gulf war and 9 11, katrina and all these other major issues. What tends to happen, while today is important, with an 800 point down move, the key is going to be whats going to happen the next few days. And what sets that up is really the risk managers and the margin calls that are coming through. There will be people today in their etrade accounts, in their schwab accounts and Morgan Stanley accounts, they will get a notice that they need to