Transcripts For FBC Varney Company 20240713 : vimarsana.com

I will use another strong word. Panic. That is justified. Late yesterday, panicked investors drove the dow down 1191 points. Thats the biggest oneday point loss ever. Okay, thats the backdrop. Now todays reality. The dow at one stage early this morning, futures were down over 600 points. Right now we are down over 400 points. The s p down 50. The nasdaq composite, way down, another 2 lower, off 166 points. Today on this show, we will ask when do we get a rebound . Where are the bargains that longterm investors might go for . Now look at this. This, what you are seeing, is a worldwide rush to put money into ultrasafe u. S. Treasuries. The yield now, 1. 19 . At one stage earlier it was 1. 16 , an historic low. That is a classic flight to safety. Heres what happens when the Global Demand for oil falls out of bed. Sharply lower prices. At this moment, we have got, what, about i think its 45 per barr barrel. That is on the price of oil. Thats the latest on the market action. Now the latest on the virus. Authorities in germany have quarantined an entire town. Theres a doubling of new cases in france. Switzerland bans large gatherings so in europe, the clampdown on Free Movement is expanding. That is an economy problem for europe. Around the world, the first case appears in Subsaharan Africa reported from nigeria. New zealand reports its first case. And tokyo disney will close for two weeks. Yesterday, japan ordered the closure of all schools. And this is getting attention. In hong kong, a dog whose owner has the virus tested quote, a weak positive. So there are questions about how the virus is transmitted. All right. The democrats continue their overthetop criticism of the president and the virus containment effort. They are trying to make the virus the president s fault. The president rallies in South Carolina tonight. The democrat South Carolina primary is tomorrow and in a fox poll, Bernie Sanders emerges as the clear leader. Hes got 31 support. Nonstop coverage for you for the next three hours. In our 10 00 hour, National Economic Council Director larry kudlow will join us. Lets get right to the market and bring in market watcher jonathan hoenig. Jonathan, can you tell us if you see any bottom here anywhere . Well, not yet. Literally, you havent seen either that extraordinary capitulation or literally, a lot of the stocks simply start to start moving up again. I think you are correct to call this a rolling crash, if you will. Really one of the most dramatic drops we have ever seen from a high to a low, the fastest drop really in history. We have only ever seen this in 2008 during the Global Financial crisis. Only 15 of stocks now are above their 200 day moving average. So it looks pretty awful and i said the whole week, i think this is a falling knife and the market has been down for six days running. Stuart i would not expect a serious rebound on a friday, because you dont know whats going to happen over the weekend. What would you say . Exactly right. Especially considering you have reported day after day new increased cases and of course, economic fallout of those cases. Schools being closed, businesses being closed. Put yourself in the mind not only of a professional investor but of any investor who as you said wants to go home, maybe not long so much stock on a friday with the coronavirus still spreading day to day. I will mention also quickly, its also the end of the month, the last trading day of the month. A lot of big investors arent going to want to show a lot of stock on their books end of month. Stuart can you say volatility . Jonathan, thanks very much. Lets bring in dr. Marc siegel. Welcome back to the program. Im just intrigued with the story about the dog in hong kong. Its owner has the virus. The dog tested quote, a weak positive for the virus. What does that tell us about transmission . We know its easily transmitted. I was just out at nebraska med where they quarantined 13 patients who have it. Its easily contagious. Stuart how . Wait a minute. How . If ive got the virus and i touch you, do you have it . You can get it by touch. So the most common way you get it is from touch or from sneezing, respiratory droplets and coughing. Dogs can get it that way, too. Dogs are mammals. This is a mammalian virus. Dogs carry coronaviruses. Its not surprising somebody can transmit it this way. Its probably from saliva from the owner to the dog. Stuart you were in omaha, nebraska where they are treating a quarantined patient. What did you see . I saw incredible precautions and really smart compassionate people who are studying this virus. Most of the cases out there are mild. Two of them were really severe and they got better. It looks like they may have tried that experimental drug on them. It looks like its promising that it may work. But the real thing is thats a brain trust out there in nebraska. They are calling Medical Centers all over the country and telling people how to prepare. How do you prepare . Basically people that are going to treat coronavirus patients or patients who may have it, wear masks, they wear shields, they wear gowns, they wear gloves. They wear bonnets. Thats the main suit. Not the scary haz mat suits. Its the main suit. The other thing i want to say, this is really important, when you talk about spread, i want people out there to understand the reason Public Health is clamping down on this is because if we can control it now, it doesnt look like we can, but if you can control it before it becomes part of a community, then you can prevent it from coming back and coming back and coming back. Once its endemic here, its like a brush fire. The flu comes back every year. We failed to control the flu. If this hits here in the United States and we are looking at california now very carefully, if it takes root, its going to spring up repeatedly. Stuart theres no vaccine at the moment. No vaccine for this virus. There isnt. At this moment theres not. Its several months away. Its in the works. We are getting a tremendous amount of attention to that. Nih is on top of this. We will get one by the fall, believe. Stuart what about a test, reliable test thats easy and quick . Have we got one . That part, i would call a disgrace. Because the cdc has a test but one of the reagents failed. They had to pull it back. In answer directly to your question, within the next few weeks we will get a rapid blood test that i can have in my Medical Center that cdc will send around, were not there yet. We need that desperately. Because if someone is coughing and sneezing, i want to tell you, it looks very different than the flu. Heres whalt else i lrnearned i nebraska. Cough, shortness of breath, fever. Thats the coronavirus. Flu, fatigue, muscle aches. Very different. If i have a test kit, i can tell you if you have it or not. Stuart im told the fatality rate for this virus is 0. 4 . Thats the number of people on a proportional basis who have died from it if theyve got it. That compares to 0. 1 mortality rate for the flu. Is that accurate . No. Heres why. We dont know. In china which has a Terrible Health system compared to us, its higher. South korea, its lower because they have a Great Health Care system. Its emerging, the answer to this question. How deadly it is is not answered yet. It may end up being less. Heres the one bit of good news i want to tell you. Whereas the flu can kill young people, this virus looks like it affects mainly the elderly and immunocompromised and people with chronic conditions. They are most at risk for that pneumonia and severe complications. So younger people, thank god, are out of the loop right now for severe cases. Stuart dr. Marc siegel, thank you very much. You have your work cut out for you. Thank you. Now then, the administration, we understand, is looking for ways to boost production of those protective face masks. I think theres a way they can actually do it. Ashley they can. Its a law. The defense production act that was introduced in 1950 at the start of the korean war. There are reports the white house is considering enforcing this. It basically grants the government the power to expand the Industrial Production of key materials. In this instance of course, we are talking about face masks. Right now the u. S. Currently has a stockpile of about 12 million. Alex azar, secretary of health and Human Services, says they need about 300 million. We are way short. Theres about 30 Million Masks available but all this is not enough for this country. Stuart the president has the power to order private companies, get on it and make them . Ashley how about this. A Company Makes face masks, 80 of them are for painters. 20 for medical. The government would now have the ability to say you need to flip that around. You need to make 80 for medical, 20 for painters. Its that kind of power. Stuart look at that, face mask stocks straight up. Alpha pro was up 100 yesterday. A bunch today as well. All right. The big disinfectant companies, i believe they are trying to boost production, is that right . Lauren we will talk about three of them. The Parent Company of purell working overtime because people are stocking up so they have enough product. Clorox is prepared for a surge in demand. That stock up almost 10 this year. And the company that makes lysol, those employees working around the clock. Stuart thats the cleaning companies. What about have you got news on United Airlines . Lauren we know Many Airlines have cut flights to china and hong kong but now we are talking about asia. United, third biggest carrier in the world, cutting back on japan, singapore and south korea flights. This is a clampdown on the Free Movement of people on vacation, on travel to that part of the world. Stuart as we run up to the opening bell, you will see the futures all over the place. Very early this morning, we were down over 600 points. Then we were down 100 points. Now we are down nearly 500 points. You can expect up and down probably all day long as the market wrestles with this virus problem. Next, susan is with us. She sat down with apples chief tim cook. What did he tell you about china . Susan that things are getting better. You saw the lowest number of coronavirus cases on friday at around 427. Usually new cases are around 2,000. In his view, apples view, and apple is probably the most Successful Company to ever get into the chinese economy and the market, he says things are getting better, especially with the supply chain. Take a listen. It feels to me that china is getting the coronavirus under control. You look at the numbers, they are coming down day by day by day. So im very optimistic there. On the suppliers side, we have suppliers, iphone is built everywhere in the world. We have key components coming from the United States with key parts that are in china, so on and so forth. When you look at the parts that are done in china, we have reopened factories so the factories were able to work through the conditions to reopen, they are reopening. They are also in ramp so this is the third phase of getting back to normal. We are in phase three. Susan apple is the first Major Company to miss targets because of the coronavirus. Apple stock is down 15 over the past month. I would imagine a lot of damage came in the last two weeks since that sales warning. Apple also repurchases its shares and when stocks are cheap like they will be today, they spend 100 billion buying back their own stock, tim cook says if its attractive, especially if you are getting a 15 , 20 discount, he didnt say they wouldnt be buying back stock. Stuart on the screen we have 261 and that is premarket. Come in, jonathan hoenig. Is that not a low enough price to make you want to go out and buy some apple with what tim cook just said . It only brings the stock back to where it was in the fall of last year. Its down for the year but apple is really emblematic of the issue here, not just the problem in china but problem with the Global Supply chain, both in terms of whats being provided and also whats being consumed, not only in china. Of course, the supply chain apple talked about some of those disruptions and of course, the consumer end of it as well. Needless to say, as goes general motors, so goes the market, you could say that about apple now. 10 of the dow, 14 of the nasdaq, this stock truly moves the market and the fact its been so weak and now down year to date makes it really hard for these averages to get off the mat. Stuart please, producer, leave that maga stock list up there. This is premarket quotes. You got microsoft down to 153. It was at 190 a couple weeks ago. Apple at 260. It was 330, if i recall. Something like that. Now youve got alphabet google, it was well above 1400. Now its 1276. Amazon, 1832 per share. You got some sizeable drops in the big tech stocks premarket this friday morning. Moments ago, the dow was down right now 500 points lower. Thats a big drop. Youve got volatility, really bigtime. Susan all of those stocks are negative for the year except for microsoft but with that loss today it will be negative on the year, too. We were making the argument that the big tech stocks, maga stocks, were safe haven plays. They are now negative for the year. Stuart Robert Kaplan is the fed governor, told maria moments ago, he said look, this virus will hurt americas economy and that is a factor in deciding whether or not the Federal Reserve cuts Interest Rates. I think you can build an Interest Rate cut very firmly into this market. When it comes, i have no idea but i cant see how the fed can walk away from a rate cut at this point. Look, thats not going to solve the supply chain problem with china. Obviously not. But it would be designed to not exactly put a floor under the market but help the market. Lauren we havent heard from the fed. We havent heard from the ecb yet. And the bank of korea did nothing. When we are talking about central bank policy, where is it . It seems you could make your argument what do lower Interest Rates even do at a juncture like this, but we havent heard any coordinated response. Maybe thats what wall street needs right now. Stuart negative Interest Rates have not helped europe. Ashley not at all. Stuart what have you got from secretary of state pompeo . Ashley he said the United States has offered iran help with the countrys response to the coronavirus. 34 people have been killed in iran. The secretary of state raising doubts about tehrans willingness to share information and also its ability, its Health Care Infrastructure is raising serious questions, has offered help to iran. Not so sure thats going to be welcomed but nevertheless, the offer has been made. Stuart can we just also have a look at the tenyear treasury yield, please. We have been all over the place this morning. The yield is consistently coming down. 1. 18 . It reached a low of 1. 16 earlier this morning. That is an extraordinary move. The 30year i think ashley just under 1. 70. 1. 69. Stuart you are seeing Interest Rates absolutely tumble. The reason for that is quite simple. Money is flowing into american treasuries from all over the world, pushing up the price, pushing the yield right down. 1. 69 on the 30year. Theres a bright spot here. At some point in the very near future, the Mortgage Rate is going to come tumbling down. Kristina partsinevelos at the nasdaq. What do you have for me . Kristina i spoke to one tech analyst who had a catch phrase. If you are looking and concerned about whats going to happen with the pandemic, especially because this is the end of the month so a lot of people may be repositioning or moving money abroad, 2c, the first, cash on hand. Those are companies are cash on hand. The second c stands for cloud, Cloud Computing. Think about the actual concept, you dont need to go anywhere to use it. You can use Cloud Computing or the cloud in general, we all use it from our homes. Think of all microsoft, the general Tech Companies that have seen quite a selloff this week, they could be a bright spot for those investors that are worried and want to have some protection heading into the weekend. Nonetheless, im seeing microsoft right now in premarket trading still down over 3 at 152. 94. These are just bits of advice. I will come back with more throughout the show. Stuart okay. Ash, you have something more . Ashley from james bullard, head of the Federal Reserve of st. Louis. He kind of echoes what we heard from other fed members. Quote, further policy rate cuts are a possibility if a Global Pandemic actually develops with Health Effects approaching the scale of ordinary influenza, but this is not the baseline case at this time. So he also notes that the virus appears to have stabilized in china. So thats another dampening, if you like, comment from the fed with regard to rate cuts. Stuart let me recap whats going on. The bottom righthand corner of the screen really tells the story. We are down 570 points on the Dow Jones Industrial average. Look at that. Lefthand side of your screen, we are down 220 points for the nasdaq composite. Weve got sharply lower stock prices. Weve got sharply lower yields on treasury securities. Weve got a sharply lower price for crude oil. Thats a wrapup of the markets. We are still by no means out of the woods. Jonathan hoenig, come back in again, because look, we are looking at these maga stocks, looking at the big Global Demand<\/a> for oil falls out of bed. Sharply lower prices. At this moment, we have got, what, about i think its 45 per barr barrel. That is on the price of oil. Thats the latest on the market action. Now the latest on the virus. Authorities in germany have quarantined an entire town. Theres a doubling of new cases in france. Switzerland bans large gatherings so in europe, the clampdown on Free Movement<\/a> is expanding. That is an economy problem for europe. Around the world, the first case appears in Subsaharan Africa<\/a> reported from nigeria. New zealand reports its first case. And tokyo disney will close for two weeks. Yesterday, japan ordered the closure of all schools. And this is getting attention. In hong kong, a dog whose owner has the virus tested quote, a weak positive. So there are questions about how the virus is transmitted. All right. The democrats continue their overthetop criticism of the president and the virus containment effort. They are trying to make the virus the president s fault. The president rallies in South Carolina<\/a> tonight. The democrat South Carolina<\/a> primary is tomorrow and in a fox poll, Bernie Sanders<\/a> emerges as the clear leader. Hes got 31 support. Nonstop coverage for you for the next three hours. In our 10 00 hour, National Economic<\/a> Council Director<\/a> larry kudlow will join us. Lets get right to the market and bring in market watcher jonathan hoenig. Jonathan, can you tell us if you see any bottom here anywhere . Well, not yet. Literally, you havent seen either that extraordinary capitulation or literally, a lot of the stocks simply start to start moving up again. I think you are correct to call this a rolling crash, if you will. Really one of the most dramatic drops we have ever seen from a high to a low, the fastest drop really in history. We have only ever seen this in 2008 during the Global Financial<\/a> crisis. Only 15 of stocks now are above their 200 day moving average. So it looks pretty awful and i said the whole week, i think this is a falling knife and the market has been down for six days running. Stuart i would not expect a serious rebound on a friday, because you dont know whats going to happen over the weekend. What would you say . Exactly right. Especially considering you have reported day after day new increased cases and of course, economic fallout of those cases. Schools being closed, businesses being closed. Put yourself in the mind not only of a professional investor but of any investor who as you said wants to go home, maybe not long so much stock on a friday with the coronavirus still spreading day to day. I will mention also quickly, its also the end of the month, the last trading day of the month. A lot of big investors arent going to want to show a lot of stock on their books end of month. Stuart can you say volatility . Jonathan, thanks very much. Lets bring in dr. Marc siegel. Welcome back to the program. Im just intrigued with the story about the dog in hong kong. Its owner has the virus. The dog tested quote, a weak positive for the virus. What does that tell us about transmission . We know its easily transmitted. I was just out at nebraska med where they quarantined 13 patients who have it. Its easily contagious. Stuart how . Wait a minute. How . If ive got the virus and i touch you, do you have it . You can get it by touch. So the most common way you get it is from touch or from sneezing, respiratory droplets and coughing. Dogs can get it that way, too. Dogs are mammals. This is a mammalian virus. Dogs carry coronaviruses. Its not surprising somebody can transmit it this way. Its probably from saliva from the owner to the dog. Stuart you were in omaha, nebraska where they are treating a quarantined patient. What did you see . I saw incredible precautions and really smart compassionate people who are studying this virus. Most of the cases out there are mild. Two of them were really severe and they got better. It looks like they may have tried that experimental drug on them. It looks like its promising that it may work. But the real thing is thats a brain trust out there in nebraska. They are calling Medical Center<\/a>s all over the country and telling people how to prepare. How do you prepare . Basically people that are going to treat coronavirus patients or patients who may have it, wear masks, they wear shields, they wear gowns, they wear gloves. They wear bonnets. Thats the main suit. Not the scary haz mat suits. Its the main suit. The other thing i want to say, this is really important, when you talk about spread, i want people out there to understand the reason Public Health<\/a> is clamping down on this is because if we can control it now, it doesnt look like we can, but if you can control it before it becomes part of a community, then you can prevent it from coming back and coming back and coming back. Once its endemic here, its like a brush fire. The flu comes back every year. We failed to control the flu. If this hits here in the United States<\/a> and we are looking at california now very carefully, if it takes root, its going to spring up repeatedly. Stuart theres no vaccine at the moment. No vaccine for this virus. There isnt. At this moment theres not. Its several months away. Its in the works. We are getting a tremendous amount of attention to that. Nih is on top of this. We will get one by the fall, believe. Stuart what about a test, reliable test thats easy and quick . Have we got one . That part, i would call a disgrace. Because the cdc has a test but one of the reagents failed. They had to pull it back. In answer directly to your question, within the next few weeks we will get a rapid blood test that i can have in my Medical Center<\/a> that cdc will send around, were not there yet. We need that desperately. Because if someone is coughing and sneezing, i want to tell you, it looks very different than the flu. Heres whalt else i lrnearned i nebraska. Cough, shortness of breath, fever. Thats the coronavirus. Flu, fatigue, muscle aches. Very different. If i have a test kit, i can tell you if you have it or not. Stuart im told the fatality rate for this virus is 0. 4 . Thats the number of people on a proportional basis who have died from it if theyve got it. That compares to 0. 1 mortality rate for the flu. Is that accurate . No. Heres why. We dont know. In china which has a Terrible Health<\/a> system compared to us, its higher. South korea, its lower because they have a Great Health Care<\/a> system. Its emerging, the answer to this question. How deadly it is is not answered yet. It may end up being less. Heres the one bit of good news i want to tell you. Whereas the flu can kill young people, this virus looks like it affects mainly the elderly and immunocompromised and people with chronic conditions. They are most at risk for that pneumonia and severe complications. So younger people, thank god, are out of the loop right now for severe cases. Stuart dr. Marc siegel, thank you very much. You have your work cut out for you. Thank you. Now then, the administration, we understand, is looking for ways to boost production of those protective face masks. I think theres a way they can actually do it. Ashley they can. Its a law. The defense production act that was introduced in 1950 at the start of the korean war. There are reports the white house is considering enforcing this. It basically grants the government the power to expand the Industrial Production<\/a> of key materials. In this instance of course, we are talking about face masks. Right now the u. S. Currently has a stockpile of about 12 million. Alex azar, secretary of health and Human Services<\/a>, says they need about 300 million. We are way short. Theres about 30 Million Masks<\/a> available but all this is not enough for this country. Stuart the president has the power to order private companies, get on it and make them . Ashley how about this. A Company Makes<\/a> face masks, 80 of them are for painters. 20 for medical. The government would now have the ability to say you need to flip that around. You need to make 80 for medical, 20 for painters. Its that kind of power. Stuart look at that, face mask stocks straight up. Alpha pro was up 100 yesterday. A bunch today as well. All right. The big disinfectant companies, i believe they are trying to boost production, is that right . Lauren we will talk about three of them. The Parent Company<\/a> of purell working overtime because people are stocking up so they have enough product. Clorox is prepared for a surge in demand. That stock up almost 10 this year. And the company that makes lysol, those employees working around the clock. Stuart thats the cleaning companies. What about have you got news on United Airlines<\/a> . Lauren we know Many Airlines<\/a> have cut flights to china and hong kong but now we are talking about asia. United, third biggest carrier in the world, cutting back on japan, singapore and south korea flights. This is a clampdown on the Free Movement<\/a> of people on vacation, on travel to that part of the world. Stuart as we run up to the opening bell, you will see the futures all over the place. Very early this morning, we were down over 600 points. Then we were down 100 points. Now we are down nearly 500 points. You can expect up and down probably all day long as the market wrestles with this virus problem. Next, susan is with us. She sat down with apples chief tim cook. What did he tell you about china . Susan that things are getting better. You saw the lowest number of coronavirus cases on friday at around 427. Usually new cases are around 2,000. In his view, apples view, and apple is probably the most Successful Company<\/a> to ever get into the chinese economy and the market, he says things are getting better, especially with the supply chain. Take a listen. It feels to me that china is getting the coronavirus under control. You look at the numbers, they are coming down day by day by day. So im very optimistic there. On the suppliers side, we have suppliers, iphone is built everywhere in the world. We have key components coming from the United States<\/a> with key parts that are in china, so on and so forth. When you look at the parts that are done in china, we have reopened factories so the factories were able to work through the conditions to reopen, they are reopening. They are also in ramp so this is the third phase of getting back to normal. We are in phase three. Susan apple is the first Major Company<\/a> to miss targets because of the coronavirus. Apple stock is down 15 over the past month. I would imagine a lot of damage came in the last two weeks since that sales warning. Apple also repurchases its shares and when stocks are cheap like they will be today, they spend 100 billion buying back their own stock, tim cook says if its attractive, especially if you are getting a 15 , 20 discount, he didnt say they wouldnt be buying back stock. Stuart on the screen we have 261 and that is premarket. Come in, jonathan hoenig. Is that not a low enough price to make you want to go out and buy some apple with what tim cook just said . It only brings the stock back to where it was in the fall of last year. Its down for the year but apple is really emblematic of the issue here, not just the problem in china but problem with the Global Supply<\/a> chain, both in terms of whats being provided and also whats being consumed, not only in china. Of course, the supply chain apple talked about some of those disruptions and of course, the consumer end of it as well. Needless to say, as goes general motors, so goes the market, you could say that about apple now. 10 of the dow, 14 of the nasdaq, this stock truly moves the market and the fact its been so weak and now down year to date makes it really hard for these averages to get off the mat. Stuart please, producer, leave that maga stock list up there. This is premarket quotes. You got microsoft down to 153. It was at 190 a couple weeks ago. Apple at 260. It was 330, if i recall. Something like that. Now youve got alphabet google, it was well above 1400. Now its 1276. Amazon, 1832 per share. You got some sizeable drops in the big tech stocks premarket this friday morning. Moments ago, the dow was down right now 500 points lower. Thats a big drop. Youve got volatility, really bigtime. Susan all of those stocks are negative for the year except for microsoft but with that loss today it will be negative on the year, too. We were making the argument that the big tech stocks, maga stocks, were safe haven plays. They are now negative for the year. Stuart Robert Kaplan<\/a> is the fed governor, told maria moments ago, he said look, this virus will hurt americas economy and that is a factor in deciding whether or not the Federal Reserve<\/a> cuts Interest Rate<\/a>s. I think you can build an Interest Rate<\/a> cut very firmly into this market. When it comes, i have no idea but i cant see how the fed can walk away from a rate cut at this point. Look, thats not going to solve the supply chain problem with china. Obviously not. But it would be designed to not exactly put a floor under the market but help the market. Lauren we havent heard from the fed. We havent heard from the ecb yet. And the bank of korea did nothing. When we are talking about central bank policy, where is it . It seems you could make your argument what do lower Interest Rate<\/a>s even do at a juncture like this, but we havent heard any coordinated response. Maybe thats what wall street needs right now. Stuart negative Interest Rate<\/a>s have not helped europe. Ashley not at all. Stuart what have you got from secretary of state pompeo . Ashley he said the United States<\/a> has offered iran help with the countrys response to the coronavirus. 34 people have been killed in iran. The secretary of state raising doubts about tehrans willingness to share information and also its ability, its Health Care Infrastructure<\/a> is raising serious questions, has offered help to iran. Not so sure thats going to be welcomed but nevertheless, the offer has been made. Stuart can we just also have a look at the tenyear treasury yield, please. We have been all over the place this morning. The yield is consistently coming down. 1. 18 . It reached a low of 1. 16 earlier this morning. That is an extraordinary move. The 30year i think ashley just under 1. 70. 1. 69. Stuart you are seeing Interest Rate<\/a>s absolutely tumble. The reason for that is quite simple. Money is flowing into american treasuries from all over the world, pushing up the price, pushing the yield right down. 1. 69 on the 30year. Theres a bright spot here. At some point in the very near future, the Mortgage Rate<\/a> is going to come tumbling down. Kristina partsinevelos at the nasdaq. What do you have for me . Kristina i spoke to one tech analyst who had a catch phrase. If you are looking and concerned about whats going to happen with the pandemic, especially because this is the end of the month so a lot of people may be repositioning or moving money abroad, 2c, the first, cash on hand. Those are companies are cash on hand. The second c stands for cloud, Cloud Computing<\/a>. Think about the actual concept, you dont need to go anywhere to use it. You can use Cloud Computing<\/a> or the cloud in general, we all use it from our homes. Think of all microsoft, the general Tech Companies<\/a> that have seen quite a selloff this week, they could be a bright spot for those investors that are worried and want to have some protection heading into the weekend. Nonetheless, im seeing microsoft right now in premarket trading still down over 3 at 152. 94. These are just bits of advice. I will come back with more throughout the show. Stuart okay. Ash, you have something more . Ashley from james bullard, head of the Federal Reserve<\/a> of st. Louis. He kind of echoes what we heard from other fed members. Quote, further policy rate cuts are a possibility if a Global Pandemic<\/a> actually develops with Health Effects<\/a> approaching the scale of ordinary influenza, but this is not the baseline case at this time. So he also notes that the virus appears to have stabilized in china. So thats another dampening, if you like, comment from the fed with regard to rate cuts. Stuart let me recap whats going on. The bottom righthand corner of the screen really tells the story. We are down 570 points on the Dow Jones Industrial<\/a> average. Look at that. Lefthand side of your screen, we are down 220 points for the nasdaq composite. Weve got sharply lower stock prices. Weve got sharply lower yields on treasury securities. Weve got a sharply lower price for crude oil. Thats a wrapup of the markets. We are still by no means out of the woods. Jonathan hoenig, come back in again, because look, we are looking at these maga stocks, looking at the big Name Technology<\/a> stocks, they are beaten, beaten, beaten down. Dont tell me there arent some longterm investors who are looking at that saying good lord, 152 on microsoft . Buy that thing. You cant tell me theres no buyers out there. I think, well, there are certainly buyers and i think your point is well taken that its really all about context. Look, if you truly are in your 20s and 30s and 40s and have that long term time horizon if you are working, if you have that savings account already put away, absolutely there are bargains here. The problem is a lot of people say they are in it for the long term and then when the stock goes 5 against them, they say get me out. I think absolutely. The thing about the big tech, as you mentioned, those have been the horsemen, the four or five horsemen that have led this market. In fact, before the decline, the concentration of those major stocks in terms of the s p 500 had grown to an almost huge record. So they led the market on the way up and are leading the market on the way down. Stuart we are now down over 600 points. Thats as of right now. That will change. I want to bring doc siegel back in again real fast here. They are trying to get workers back to work in china. They are probably look, that involves a mass sterilization of vast areas. Heres what i want to say about that. Disinfectants lauren was talking about all works. This virus is easily killed. Those manufacturers are correct. Lysol, clorox, all of this stuff works. Thats one thing. The second thing is, getting people back to work no matter what you disinfect risks spreading the virus again if you believe china is actually giving you real numbers. I dont know if we ever get the real numbers from china. We dont know because they have to test people to know. But the disinfectants work, a, and b, the masks that ashley was talking about, i want to point out something about them. We dont necessarily need 300,000 of them. Ashley million. Im sorry, 300 million. They are only useful if you are sick. Stuart i understand that. But it would be a sign the administration is doing something and people have something to grasp hold of, even if its only a mask. Granted. I also think the administration has put together a task force of great experts take have been working on this. Dr. Fauci, alex azar, dr. Redfield, a virologist. Cuccinelli is really deeply involved in this. This task force is aplus task force. Stuart lets go to the New York Stock Exchange<\/a>. We have four minutes to go before the market opens. Jackie deangelis, the mood, please . Jackie good morning, stuart. The mood here is very tense after this intense week of selling. You can see the losses on the futures steepening as we head towards the open. I said this earlier this morning but not to diminish the Human Element<\/a> of the virus here, i know people are dying from it and the concern is that its going to spread but wall street is really looking at demand destruction here and thats the issue. Goldman issued a note yesterday to its clients talking about Earnings Growth<\/a>, that the coronavirus could wipe it out for the entire year of 2020. Thats a real problem when it comes to investors looking at this market. One of the bright spots on the dow this morning as we head into the open is 3m, the maker of those n95 respirators. It was trading a little higher. Thats one to watch today. Even the vaccine stocks that have been moving higher, they were trading a little bit lower earlier. Apple is going to be a big drag on the dow, and has so much china exposure, its already warned about its First Quarter<\/a> revenue. Stuart jackie, thank you very much. Im sorry, everybody. I made a mistake on the time. It is seven and a half minutes to go before we open. Okay. Got that. Jonathan hoenig, im catching a little flack this morning because im calling it a rolling crash, and i have used the word panic. Am i right or wrong to use those words . You followed the markets for quite some time. You have never really seen anything like this. Not just the severity of this, we have seen 10 declines, 15 declines from the high, but the speed, to go from an alltime high to a 10 correction, we have really never seen anything like that. In terms of the panic, yeah, we started to see some of those indicators, the vix, for example, spiked dramatically. Yesterday you saw the Record Number<\/a> of trading in the index fund that tracks the nasdaq, the tech stocks. But thats the thing with panic and capitulation. In the middle of it, you think you are being irrational so we can check last nights lows in the dow this morning as so many stock market professionals are saying i dont want to be long over the weekend. Stuart ouch. Okay, jonathan, hold on. Dr. Marc siegel, last word before we open the market . Big experts here on the markets understand that fear drives markets. Im going to tell you, the number one virus here is not coronavirus. Its fear. The response to this, the sense that its impending, the sense that its going to get you, the unknown invisible, is the real story here. Its not the virus. Its the reaction to it. Stuart good stuff. By the way, ladies and gentlemen, on the program today, we will deal with the situation on the ground in america where you do have coronavirus cases. For example, in Nassau County<\/a>, there are, what, 79 cases, selfquarantined. I want to know the feeling there. Is there less foot traffic on the street and in the malls, how are people locally reacting. Same story in california. Over 8,000 cases there quarantined. How are things going . We heard yesterday from Orange County<\/a> that theres less foot traffic in the malls and people are starting to wear masks. Thats what the doctor is referring to here, the anxiety, the fear, which really is an economy killer. We will try to organize that, see how that is going from different parts of the country. Just a couple minutes to go before we open the market. We are now down 550 points on the dow industrials. That number will move all over the place and the dow is down 500, s p down 70. That nasdaq again, big techs are getting hit again. Ashley 2. 5 . Stuart joining me now, right here in new york city, we are pleased to say, senator martha mcsally, republican from arizona. Welcome to the program. Thanks for having me. Stuart we would like to see the president get out there, get out front of this thing, show people youre doing something. We are saying why not order private companies to make 300 million face masks . What do you say . Let me first say that he is out in front and leading on this and even during the impeachment battle when schumer and pelosi xhoo commandeered the senate, he set up this task force and put the travel ban on and so far we have 60 cases in america. This is another tool that is leadership that needs to be seriously looked into. For medical workers and others as we prepare in america to address it through the defense production act. Stuart heres something i dont understand. We will spend 7 billion, 8 billion to fix this thing but we wont get round to it until next week. Why isnt Congress Working<\/a> over the weekend . We are actually working through the prepared appropriations for this over the weekend. This is a nonstop issue, its so important for the country. We got to make sure we get it right. Again, pelosi and schumer are playing politics with this, go figure, and President Trump<\/a> has shown like you want to give me more money, give me more money. Can they not take yes for an answer. Stuart thats one of the worst things about whats going on. The politicization, the criticism, the irrational criticism of the president. Its disgusting to include the New York Times<\/a> blaming the virus on trump. All of that, i think people need to reject wholesale. This should be a unifying issue. We should have preparation, not panic. The president is leading, the Vice President<\/a> is taking charge. Congress should be working together. One of the things im focused on is the emergency test kits. An organization in arizona i visited last week submitted a request for emergency authorization so that providers and hospitals can test right there. We need to rapidly get those kits out to providers. Stuart i dont think they have a reliable test kit at this point. They do not. They have the cdc test kits. They fixed some of the issues with it but theres not enough of them and they arent the ones that can be in providers offices. They still have to go to the lab in each state and not enough states have them. Stuart any sign of high anxiety in arizona . I think we have an early case in arizona. Our Health Officials<\/a> we stay in contact with to make sure coordination is happening. We are working with the governors team. We have to make sure people are prepared and not panicked. The best thing we can do individually is all the basic hygiene stuff, while we ensure Public Health<\/a> officials are prepared, hospitals are prepared, but we get these test kits out quickly and get the right funding in the hands of the right people. Stuart great to see you in new york today. Im sorry its so short. We have a market acting i totally understand. Stuart senator martha mcsally. Jonathan hoenig, what have we got, two minutes to the opening bell. What do you think we will see on the market when we open . First and foremost, will we continue to set these new lows. You asked before when is an indication this a bottom is in. We will have to start to see it in some of these big tech stocks. Apple, microsoft, that led us on the way up. Investors and traders will be looking for what if anything is going to be where investors will draw the line and start to put in some bids in what has been a historically disastrous week for stocks. Stuart yes. By my count, the dow has lost 3,225 points in the first four days of this week. Thats up until the close last night. By the way, it is the most rapid decline from a high in the history of the stock market. Yesterday, 1,191 points down, i think it was. I try to remember these things. That was the biggest oneday point drop ever. Lauren 4 trillion in wealth wiped out in the past couple days. 6 trillion globally. 4 trillion here in the u. S. When you are looking for this bottom of the market, would you make the argument the bottom would be medical, where there is a true test or vaccine that we know about, then everyone can say okay, the end is near. Stuart im not sure what to look for in a bottom. Ashley we have had historic bull market now for what, 11 years. We always wondered what could it be that would trip this up. We talked about the meltup. Now we know. This is the trigger. Stuart you know how it is. If you are an investor and have seen your stock go all the way up, now it comes down 10 , you think i just lost 10 of my money. But you also made 20 , 30 before that. Here we go. This is a big day, ladies and gentlemen. It is a friday morning, last day of an extraordinary week. Here we go. Its 9 30. We are off and running. Look at this. Down 600 points, 2. 8 700, nearly 800 points. Just watching this thing go down. 800 points down. I can only see one winner. Lauren 3m. Stuart 3m. Thats the company that makes masks. Okay. Now we are down you are going to see that number go all over the place. 29 of the 30 dow stocks are down. Show me the nasdaq composite, please, in the very early going. Pretty sure thats a significant loss. There we go. Down more than 3 . Ashley 270 points. Stuart 270 points down on the nasdaq composite. Thats Something Else<\/a> again. The s p, tell me. Ashley same thing, down almost 3 . 84 points, 2894. Stuart my goodness me. Okay. David dietze is with us this morning here at the opening bell from pointview wealth management. Any sign of a bottom . Yes. Stuart you do . Bottom in the market or something stuart tell me what you see as a bottom for the market and when it comes. The proper answer is no one sees a bottom until in hindsight but certainly, when we saw the vix going close to 50, that was some sort of capitulation. When we see a selloff this week which matches the worst selloff in 12 years going back to the subprime crisis, we are close to some sort of bottom, tradeable bottom, i think. When we have the Federal Reserve<\/a> governors coming out talking about possible rate cuts, they are sweating bullets. We are getting closer to a bottom. Stuart you cant identify of course you cant. Im not suggesting you could. But you are saying we are getting close to the bottom. Right now, we are just bouncing around 25,000 on the dow industrials, a loss of 660 points. Shah gilani is with us. Are you on camera or on the phone . Not sure which it is. Okay. There he is. Sh shah gilani, yesterday on the program you said you werent touching it yet. You werent buying yet. You were waiting for another downside move. Do you see it now . Are you buying now . No, stuart, im not buying yet. This is frightening in terms of how this week has gone. I was hoping to see a bounce. Wednesday on your program, as the market sort of tried to gather itself, it was down almost 1,000 points, then came back to down only 250. I thought great, maybe this is going to be an interim bottom. Of course, we ended up the day on the wrong side. Yesterdays close on the low does not bode well for today. Typically, what happens in a situation like this is investors do not want to own stocks, hold stocks or even the bargain hunters dont really want to go in on a friday. They are more inclined to sell going into a weekend because anything can happen with the virus over the weekend. Bad news could spring up anywhere. Investors dont want to be in position if Something Like<\/a> that happens. Typically if we end up on the lows today which would be rather ugly, typically monday could see another awful day. Stuart okay. We got that. Now, the dow is off now 560 points. Thats what weve got as we speak. The dow is at 25,200. Significant loss for the nasdaq composite. Show me the maga stocks, if you can. Because they have been beaten down. I mean beaten down. Look at apple, at 263. Google, now trading at 1297. Amazon at 1854. Kristina partsinevelos watching disney. What are you seeing, please . Kristina yeah. Disney has Just Announced<\/a> that they are going to be closing their Tokyo Disneyland<\/a> and disney sea. That is contributing on the loss we are seeing for the share price of disney. It is trading at 114 so down over 3 . It continues to decline as soon as the markets opened. Keep in mind the parks in shanghai and hong kong have been closed indefinitely. This is a big hit to disney because theme parks still contribute over 30 of their total revenue. What we are seeing from the Company Earlier<\/a> this month, they gave a number saying they think it will be a 280 million hit and the results of fiscal 2020 will be affected by this coronavirus. But again, this is the latest news coming from disneyland. This is in japan. They are closing for two weeks and also the japanese government we know, across the globe we have been seeing this, postponing big large events. This is the latest news contributing to the selloff with disney. Stuart i wanted to hear what they say about the olympics. Susan . Susan i want to go back in history. During sars, markets lost around 13 or so. They did eventually recover, as we remember, in 2002. After 9 11, stocks, the s p 500 fell 12 in the week after the tragic events but again, recovering as well. Stuart we are in somewhat similar position on the market now to where we were susan double digits down. Stuart okay. But we came back after that. Susan yes. Stuart took awhile. Susan it took awhile. I would say demand is still there. Thats the feeling i get from ceos and talking to tim cook. People understand this is just delayed consumption. Stuart got it. Ash . Ashley continuing some of these comments from james bullard, the fed reserve chairman, he says the world is a long way from coronavirus approaching the mortality levels of seasonal flu even if investors seem to be betting on a worse outcome. Hes downplaying for sure. Stuart now down 529 points on the dow industrials. David dietze, economist, im going to call you an economist. Whether you are or not, i dont know. It seems to me the worst depressant for Economic Activity<\/a> in any country where this virus hits is when people stop going out and about. They stop their normal regular daily lives because that really restricts Economic Activity<\/a>. I hope we dont see that here because thats a problem. It can be selffulfilling. That fear is worse than the actual virus itself. As the good doctor was saying a few moments ago, the response can be worse than the actual virus. I would say i have studied, we have studied viruses going back over 30 years, and in each case, the market has been up more than 10 from the onset. This is a virus, we have seen these things before, a vaccine will come out, people will calm down, take a deep breath and do what youre told. Stuart we will see what happens we will see when that happens. Take that deep breath. Can you show me the Airline Stocks<\/a> . I ask for that because i see American Airlines<\/a> just this week, up until the close yesterday, American Airlines<\/a> was down 28 . Now i see American Airlines<\/a> this morning down another 2 . So American Airlines<\/a> this week thus far has lost about onethird of its value. Extraordinary move. I can understand it. The whole world is slowing down. Were not traveling that much. You can understand that loss. But it is very significant nonetheless. Look at that. 20 a share for American Airlines<\/a>. Southwest is way down, too. 45 per share. 471 points lower for the dow jones average as we speak. Can you show me some more travel related stocks, please . Im sure they are the ones thats going to be hit the most. Im not sure ashley cruise lines. Stuart cruise lines. Look at that. Norwegian down again. Royal caribbean, down again. Carnivals at 31 per share. Lauren Deutsche Bank<\/a> cut their price targets on all of these, in some cases by half. Stuart i dont see where the low is for travel companies. Because as the virus spreads around the world ashley those headlines. Stuart travel all around the world likely to seize up, whether you are an airline or a cruise line. You are in bad shape here. If you are a gaming stock, i dont know what the status of macao is, whether they have reopened. Lauren they reopened. I think there are limited hours and visitor numbers obviously are not very high. Stuart so wynn is down 109 a share. Las vegas sands, 57. Mgm, 24. Susan its also the Las Vegas Strip<\/a> as well. Tourism. In fact, i would say most people go to macao for gaming but in terms of tourism, las vegas conventions and shows would probably see a bigger impact. Stuart asian tourists used to be prominent on the vegas strip. Susan they still are. Just not right now. They also spend around 6 billion in travel each and every year here to the u. S. So 6 billion, they are the highest Spending Group<\/a> of travelers in the world. Stuart lets have a look at other groups of stocks. I would like to see the financials, please. The financials, they dont normally do well when you have very low Interest Rate<\/a>s. Boy, do we have low Interest Rate<\/a>s today. The yield on the United States<\/a> tenyear treasury, 1. 18. Dear lord. Hold on a second. Explain to me, david dietze, why Financial Companies<\/a> suffer real badly when Interest Rate<\/a>s are plunging. Very simple. They make their money by lending money out. As Interest Rate<\/a>s come down, that means they can charge less. They are still stuck with these 2 cds but now they will be lending out for mortgages and that Mortgage Rate<\/a> is coming down lower and lower and lower so their Net Interest Margin<\/a> gets squeezed. Thats why im optimistic. You can say i dont want to touch this market but would you buy a tenyear treasury bond below 1. 2 . For a long term deal that makes no sense. Interest rates will come back up. Stuart you sure Interest Rate<\/a>s will come back up . I stuart hold on. Go ahead, jonathan. They have been saying that in japan for the better part of 20 years and in germany, the entire german yield curve is now negative. I think the fact that the yield curve as you have talked about all week, we continue to see this lower and lower Interest Rate<\/a>s. Look, put the coronavirus aside. That alone tends to be historically a harbinger of a weak economy. What worries me about the banks isnt even necessarily the weak economy but the deterioration of credit. Some of the junk bond funds like bkln, they are starting to crack up as well. We talk about falling knives. I put the banks on the list of falling knives right now. Stuart by the way, everyone, larry kudlow will be our guest on the program a little later on the show today. I will of course ask him what impact this is having on americas economy this quarter and next quarter. He will give us an answer on that one. But david dietze, are we headed for recession . Well susan i think its a little too early. Its two quarters of negative growth. We havent even seen one. Stuart are we headed for a very serious slowdown . Go back to the key fundamental. The key problem is this virus. The question is, where is this virus going and of course, we have every Health Care Professional<\/a> in the world now working on it. We are figuring out ways to minimize the risk. I think based on history, we come back and lets get that virus gone away, this fundamental to the u. S. Economy going into the year were very very strong. Stuart shah gilani, come back in. Have you bought anything in the last five minutes . No, i havent. My list is getting longer. I have almost 30 stocks on my list im very anxious to buy when the time is right. Im not sure im going to see that time this week or maybe even next week. But when it comes, i have a long buy list. Stuart i want to know the three biggest names that all of us would know thats at the top of your buy list. Microsoft, number one. Disney, number two. Apple. Those are my top three. Stuart i wasnt so silly when i sold my microsoft. Ashley maybe not. Yes. Upon reflection. Stuart hindsight is you got 20 20 hindsight. Boeing is also on my very up there on my list. Boeing, when all this passes, will bounce back eventually and it will go probably back up to 400 within i would say year and a half, two years probably at the outset. Stuart thank you, shah. Boeing was one of the stocks i bought with the money i took out of microsoft. I bought it at 30, 31, and its barely at 300 a share now. Jonathan, am i foolish if right now i bought back into microsoft at 153, bought back into boeing at 302, and actually put my foot in the water of apple at 250 . What do you say . As the saying goes, when elephants are dancing, mice get trampled. What are we seeing here . Major elephants dancing. The person who tells you they bought the bottom and sold the top, they are both liars, whoever that person is. You have to be focused on the longer term. Stuart i am. I am. Look, look, everyone knows this. Im 71 years old. So my time frame isnt exactly a decade, let me put it like that. No, no, lets get serious. Anybody who has got a time frame of one, two, three years out, surely is on to a good thing, buying apple at 261 or google at 1297. Really . Historically, stuart, if this is a correction or bear market, that actually hasnt always been the case, brings it back to, for example, 2000, 2010. You saw a lot of big successful companies, they didnt go out of business but their stocks were essentially flatlined for the better part of a decade. Im not promising you we are in that kind of scenario but bull markets often take a little breather and very likely given the severity of this decline, we could see some of the big horsemen like apple, like microsoft, at least take a couple months if not years off. Susan you should check out we sliced losses in half. We are at 478. So theres buying rotation into it. This is the most unloved stock market rally, record bull market run we have seen. All of a sudden, okay, i guess we will use an excuse like coronavirus to take money off the table. But you also have the Federal Reserve<\/a> on your side as well because i think most people are expecting almost close to 100 probability they will cut at least one time before june this year. Stuart heres one of the things which i think will be very very important today. That is any new cases reported here in the United States<\/a>. Ashley yeah. Stuart especially new cases which have nothing to do with travel or contact with somebody else with the virus. I would also be looking to see whats the situation on the ground. Are people not going out, are they not going shopping, are they not going theo a sporting event. When you get that kind of thing, you are slowing the economy. Those are the indicators we have to look at today. Theres no saying, no telling what those indicators will actually tell us and what those indicators will actually be. Susan larry kudlow a few weeks ago said the impact the First Quarter<\/a> would be. 2 . Thats a 4 to 6 billion hit. In this economy, not much. I would be interested to see what he says to you later today with the new developments and new cases and Community Spread<\/a>. Stuart got it. Lauren i would replace the word fear with faith. I feel like theres a lack of faith in government. Are we getting the right data. The specimen for the coronavirus so we can look at what we are dealing with out of china, the political infighting on capitol hill here in the u. S. , is there confidence in a unified message being sent. People and investors are saying what do we do, buy the mask and hand sanitizer, sell our stocks, wheres the bottom. There seems to be a lack of coordinated response on a global basis. Stuart lets bring that question out in the front here. Are politics having anything to do with the current selloff which has just reached a 700 point drop. When i say politics, i mean this. Bernie sanders has now emerged as the clear winner leader, i should say. Hes got 31 support in a national poll. Joe biden is way down in second place. So is that a factor on the market . Item two, weve got democrats i would say irrationally criticizing the president and the administrations response to the virus. They have gone overboard. Its over the top stuff. I think that helps create the panic and helps that market move lower. I think that politics is having a Minor Leagues<\/a> impact on this selloff. Ashley to the first one, Bernie Sanders<\/a>, you think the markets really believe Bernie Sanders<\/a> can beat donald trump, regardless of what they say in the polls . I dont believe in polls anymore. Do you really think the market believes Bernie Sanders<\/a> can beat donald trump . I dont. Stuart no. The market does not believe it. I will just jump in. Scores of wall street experts have been asked about this, and you remember barack obama was swept into office in the midst of a Global Financial<\/a> crisis. He seemed to have the answers a lot of which at the time were perceived as stridently antimarket. You know, it might seem improbable now, but if this market keeps falling down and President Trump<\/a>s momentum when it comes to his economy starts to falter, Bernie Sanders<\/a> as president couldnt seem it could happen. Stuart you are killing me, hoenig. You are absolutely killing me. Dont blame the messenger. Stuart im going to turn this around and look for a bright spot, any bright spot, in a market where the dow is losing 700 points. Jackie deangelis, bright spots, please . Jackie monster beverage, this is a company that reported good earnings, showing some margin improvement and recently it got some price target upgrades. Its a little bit higher this morning. I also want to bring your attention to take 2 interactive software. The idea here could possibly be on the virus that people will stay home, doing more gaming, more indoor homebased activities, so we are seeing it up a little more than 1 . Even these bright spots are pretty slim. Back to you. Stuart thank you, jackie. Pretty slim, as you would expect when you are down 700. I need to clarify something here. The feds Robert Kaplan<\/a> told maria earlier today quote, its too soon to make a judgment when asked if the fed will cut rates this year. Lets get that real clear. Jeff flock is with us, is that correct . Jeffs there . Reporter yes, i am. Stuart what have you got on the fed funds rate . Reporter we essentially now have priced in, its not a question on the floor of the cme now if there will be a fed rate cut, but its when and how much. Fed funds futures now are pricing in virtually a 100 chance of a rate cut by march. Theres no way to price in something before then but by march, that there will be at least earlier today it was a 72 chance of a quarter point and a 27 chance of a half point, and if you look at the futures contracts out, theres not a lot of activity in those contracts. So i dont want to make too much out of this. But by say september, a full percentage point cut. Again, thats not a lot of activity. The other thing i want to show you, this is european Interest Rate<\/a> futures. You can see theres a lot of activity inside this pit this morning because of that very question about what the fed will do. This is the libor. Stuart the market is saying theres a 100 chance of a rate cut by the fed in march of this year which we are almost into now. Kristina partsinevelos, you have news on . Kristina fourlegged furry friends. We are talking about all ourselves, we are focused on ourselves, buying perishables trying to prepare for whatever will happen in the next coming months or weeks but what about our pets . The fda is now saying that six out of the 32 companies here in the United States<\/a> that make active drugs for pets could be facing supply issues. Why is that . Because they get some of their active ingredients from china. They have already issued, they are talking about the fact there could be disruptions. There havent been any disruptions. I dont want to alarm any of our viewers right now. But we know on the cdc website, they are warning us to get nonperishable items and to stock up on possibly medication. Now you may have to consider that for your pets, given this industry is worth about 75 billion. Im not sure if we can see it, but there are stocks i pulled up. Zoetis, widely held animal etf, we will throw that in the mix and i will switch gears completely. I know you like anecdotal stories. I was just speaking with an investment banker this morning who said he flew down to texas for a deal. He went to shake the cfos hand and the cfo refused to shake his hand for fear of catching something. It wasnt just the cfo, it was one of his colleagues as well. I feel like the fear factor seems to be escalating a little bit even though we havent seen the spread yet here in the United States<\/a>. People are definitely taking precautions, especially when it comes to your pets. Stuart those anecdotal stories actually are very important. I know they are anecdotal but they are important because thats the mood of the country. We need to assess the anxiety level in the country. Good stuff. Thanks very much indeed. Wait, we have another bright spot. Lauren . Lauren roku. Stuart of course. Streaming. Has to be. Lauren wait, wait, i stand corrected. It is now in the red. It was slightly higher. A small decline of about half a percent for roku because what do you do when you are worried, in lockdown or quarantine . You stay home. Stuart i have heard of cocooning stocks, staying home, hunkering down. Ashley trap stocks. Trapped indoors. Lauren when you are on day 14 stuart its no laughing matter. Its kind of funny but its no laughing matter. We are down 700 on the dow. David . I think our consensus here is no one will be able to call this bottom so dollar cost average. Get a little bit, take advantage of the worst week since 2008. Second, of course stuart wait. Hold on. Dont go too fast. Dollar cost averaging is a strategy where you put a given amount of money on a regular basis every week, every month, every six months, whatever it is, always put it into the market, whether the markets up or down. Dollar cost averaging. Perfect. Say you have 10,000, maybe put 1,000 in today, 1,000 a week from now, so forth, because at some point you will buy stocks at their lowest point and if stocks go down further, you havent shot your whole 10,000 away. Stuart got it. Second, say you dont have confidence whats going on. Look at your daily routine. I brush my teeth withcolgate, i get my starbucks, i fill up my car at valero, pull up my iphone and check google. The maker of those things, thats not going to go away. We will still use those a year from now. Have confidence those companies will survive. Stuart i like that. Very good. Even though the dow at this moment is now down 750 points. If we are looking for a bottom, even an interim bottom, doesnt look like we are there. We are down 775. The dow has dropped below the 25,000 level. Whats next . Show me some stocks. The dow is off that much, et cetera, et cetera, apple is at 259 now. Down 14 points. Thats 5 . Ashley oil down nearly two bucks at 45. 14. So its threatening 44. Whats interesting on a day like this, gold is down 21 bucks. No more gold. Treasuries seems to be Stuart Jonathan<\/a> hoenig, explain this. I thought gold would respond to a time of crisis and it has, but why is it down . It had earlier this week. You get the sense, theres an old saying when the paddy wagon comes they take the good girls with the bad. You are getting the feeling today, indiscriminate selling of everything across the board. You mentioned larry kudlow will be coming up in the next hour on fox business. Your interviews with mr. Kudlow before have moved markets. I know Market Participants<\/a> will listen very closely to what mr. Kudlow has to say. One benefit you look for a bright spot in all of this, is ironically the selling and pessimism. I looked this morning already, we have 1,000 new 52week lows, only 25 new 52week highs. Thats an extreme level that historically tends to provide at least some level of shortterm support. Stuart have you ever seen anything like this before . The severity of the decline from the high, as you mentioned, no, we have never seen anything like this. You have to go back to maybe early 2001 with the tech wreck. You saw Something Like<\/a> this. But down 15 from an all time high with this type of speed, you never have seen it before. I havent. Ashley what was the percentage loss, you talked about it this week on black monday, october 1987, how much percent . Stuart 22 . As i recall. I believe that day, october 19th, 22 . Susan 500 points, right . 500 point loss. Stuart the index was not like it is now. Thats for sure. Theres fresh lows, down nearly 900 points now. This is like anchoring a horse race here. We are down 870, to be precise. 24,892. Again, one more quick point here. I dont recall a market selloff like this. And i dont recall a market selloff of this magnitude because of some form of virus, pestilence. You can see it go down when you have a war on your hands or when you have a scandal on your hands and theres a political movement. But a virus, not seen it quite like this before. Lauren how much cant we see, though . How much are invisible forces, options trading, algorithms, playing a part in this . This is pretty rapidfire. You know . Stuart i think algorithms are playing a big role in this. Susan what about passive investing since people buy index funds that account for 50 of the market so when people get out and get out in a hurry, theres a lot of quick rotation in selling that takes place with the etf buying. Stuart how does that work . To your point, what dominates the indices are now are exactly the stocks that have led the major runup like apple, microsoft, google, maga stocks, fang stocks, they had the biggest run on the way up and now on the way down, those are the ones Portfolio Managers<\/a> and everyday investors are dumping first. Stuart doesnt that imply that the moment you think you got some kind of bottom and theres some kind of buying that begins, its an explosive rally on the upside . Isnt that right . Isnt that how it works . Susan quick move in and out, especially with passive investing, right. You just put it all together in one single basket and when you sell, you sell in a hurry. When you buy, you buy a lot of it in a hurry as well. Stuart look on your screen. Stuart, if i could echo something jonathan was saying, and also what susan was saying. The passive investing movement has brought over 4 trillion into that side of the business. Thats a huge amount of money. Im now looking at outflows. Last week you saw a net 3. 1 billion of outflows from passive investing funds. This week, we will see the number come monday, maybe sunday night, when they come out, i want to see how much money has left on the passive side. When that money stops exiting, the markets going to see a bottom. Those investors who are passive investors, if and when and looks to me like they have become active and actually have sold instead of like supposed to sit and wait and supposed to actually add down here, some of them are selling, we will know how much that selling has been when we look at the numbers in terms of outflows from those types of funds. When that subsides, this will be over. Stuart okay. But its not over at this point. That market is way, way down. We are off 930 points as we speak. Im doing the math here. This week, the dow has lost more than 4,000 points. In fact, its about 4,200 points. 4,100 points. Way, way down. Now we are down 963. Pretty soon you might see the red flags go up, we will be minus 1,000 for the third time this week. That is extraordinary. Jonathan, what do you say . I dont want to be hyperbolic but its been a long time since we started to hit futures loss limits and trading halts in terms of major averages. I dont think we are necessarily going to hit them but we havent seen moves like this. Again, you have to go back to the Global Financial<\/a> crisis. Thats the last time you saw anything in terms of the speed of a lot of these declines in stocks. Stuart yes. The speed of the decline, i think its a record, actually, since we hit a high about two weeks ago. This is a record the rapidity. Today is february 28th. Ashley like seven trading sessions ago. Stuart that is extraordinary. The faster we go down, potentially the faster we come up. Lets remember, theres never been a downturn where the market has not come back. This does not look like this is not as bad as 9 11 when they shut the New York Stock Exchange<\/a> for five days, clients told me im never getting on an airplane again. People today are saying i dont want to travel because of the virus, but they are not saying i will never travel again. Remember, they said they would never build Tall Buildings<\/a> in new york city, either. Weve got hundreds and hundreds of huge supertall skyscrapers. Youre right. The American Economy<\/a> and American Market<\/a> has always come back. Stuart im going to reset the show. We are coming up on 10 00 eastern time. I do want to say thank you very much to jonathan, thanks very much to david. Thanks very much, gentlemen. One and all, for being with us this morning. Very difficult day. Its like a horse race. We are following a market thats just falling, falling, falling. Thats really quite something. I have not seen anything like it. Frankly, ever before. I was on the air during the crash of 87. That was traumatic but this is remarkable. 10 00 eastern time. Here we go. Lets nonstop coverage of your money continues. We are 30 minutes into the trading session and we have seen that dow go all over the place. Up and down, down and up. White house economic adviser larry kudlow is coming up around 10 30 this morning. I want to know what effect the virus will have on our economy. I need some numbers. The tenyear treasury yield is very important. I have never seen a flight to safety quite like this. The yield 1. 17 . That is absolutely extraordinary. I mean, we have come from like 1. 50, Something Like<\/a> that, maybe ten days ago, to 1. 17. Strangely, the price of gold is actually falling. You think of gold as a safe haven. Look at this. Down 27. 57 as we speak. Ashley this is for the final reading for january. Listen, this is very near, if not beyond a twoyear high. This is for january, Michigan Consumer<\/a> sentiment, very strong number. Stuart got it. Ashley its going to no response whatsoever, down 935 points as we speak. Mike murphy is with us. Rosecliff capital kind of guy. What do you make of this . Mike the sky is falling. Whats the reason for it, its being started by the coronavirus, there may be other reasons for more selling coming in. This is not the time to say i will liquidate my portfolio and run for the hills. No one knows when the bottom will come in. I dont give a lot of guaranties but im in the camp i will guaranty we get past the coronavirus. I dont know if we bottom today or monday or next week or next month, but when i see quality names that are trading at 20, 25, 30 discount, anybody who is watching the program should be investing money at that point. Stuart you have your list together. Dow is down a thousand, 1,005, 1,009, 1,113, 111. We are falling as we speak. 1,030. Can you explain to me what on earth is going on here . What is this . Is that a panic . Mike programmed trading, it could be forced selling, leverage where people are behind and being force today sell. It could also be people, certain algorithms that are saying selling, this panic that is out there or potential panic is out there, if we sell more, if we push this lower, a thousand, what if its 1500, what if we can get it down 2,000, could it sell off even more. Thats what it could be. Stuart, i think the point is a thousand, 1500, whatever it is today, unless youre investing for whats going to happen at 4 00 oclock when the market closes. You have a little more time horizon than that, you need to look at that, apple hasnt changed, reopening stores in china, i was kicking when it was 327 and i didnt own it. And now its 250. If it gets thank where it is, i can get 30 return. Stuart are you buying apple today . Mike i most certainly will. We didnt sell it at 327 but we will buy more apple today. We are looking at nike, we will buy nike today. Stuart 85 a share, you would buy it at that level . Mike 85. Ashley wow. Mike we bought uber higher 40 and increased position at 26. 66 and road it all the way to 43, i mocked you a little bit for not buying it. Didnt sell it at 42, it was 31, 32. Uber is selling off because nobody is ever going to take an uber again because they will get coronavirus if they do. If you dont believe that, then youre a buyer of uber here as i am. Now i own it a little bit lower than this. This correction in uber stock, 30 plus in a week, if you still believe in the company as i do, you look at it when you buy one of your fancy cars when the price is down, when its on sale, thats when you really want to buy. Thats all we have here. Stuart right, real fast, a thousand 83, i described it this morning as rolling crash. Am i out of line . Mike i would say yes. Stuart really . Mike i believe its a correction, stuart. Stuart 4,000 points in a week . Mike its been very quick. Everything is quicker, you have flash trading, we have seen flash crashes. So right now this is a correction. I would not call this a crash. This is a correction in the market off highs, off huge run last year thats driven by potential for panic or epidemic with coronavirus, crash i think i believe its too strong word right now. Stuart well, i did say rolling crash, semibailing myself out. I will say use the word panic because thats panic right there, come on. Mike theres panic in the markets but i dont think theres panic in the streets. My kids, their school trip was canceled. They had a trip planned for europe, it was canceled. Schools will no longer shake hands in the morning, they wont fist bump and wave. They put plans in place if kids cant come to school, they do mobile teaching. I think people are planning the market and people are starting to plan for it when this gets completely out of hand that its not safe for you to leave your home. I dont see that right now. Stuart talk about volatility. Down mike can i talk some more . Stuart bring me back to each teal. Peter morici is here. Lets talk china, do you think china is now done as an economic super power. I know that sounds strong, what do you say . No i do think companies will diversify sourcing, other companies are going to follow suit so i think that the economy will emerge and the supply chains will emerge stronger. This is the first real panic weve had with the globalized supply chains and now we are going the make adjustments. This is a hurricane like in South Carolina<\/a>, very often, you know, the beaches get swept away, old houses get knocked down and we rebuild bigger and stronger and bigger. At the end of the day the Global Economy<\/a> will be better off because this happened. As sad as this experience is right now. Im certainly not selling anything. Stuart okay, peter. I have larry kudlow on the program coming up just a little bit later in this hour and im going to ask him, tell me, larry, what do you think is the impact on the u. S. Economy in this quarter and the quarter to come . In the First Six Months<\/a> i have an answer. Stuart how much would he take out on gdp, whats your answer . We have two things, boeing and virus, instead of growing 2. 2, we are growing 1. 3 and 1. 7 the second. You have a combined effect of 1 thats going to be stretched over two quarters, thats all. Things could get worse with spring on the wing and its effect on viruses and so forth, we will likely start to see an abatement in crisis and the economy recover by the second half. Stuart okay, lets see how that works out. Peter, hold on for a second. Ive got to divert. We are back down a thousand points. We have come back to minus 970. Now minus 970. This is moving so fast, we cant keep pace. One stock which really stood out last week and i think earlier this week and that was Virgin Galactic<\/a>, that went straight down. Ashley straight down, fourth straight session, last down, down 4 and a quarter, down 6 a you moments ago. So if you want to escape to space, not even that is working right now. Getting swept away with dawn ward draft. Stuart pure play in space and before the virus arrived, thats a nice industry to get to in the future, buy that thing. No revenue, no profits and the business hasnt started yet. Stuart if you want to get to an industry of the future, thats how you do it. I dont know who is laughing but [laughter] mike we talked about this 2 weeks ago, Virgin Galactic<\/a>. You had to be in marijuana stocks and beyond meat had a huge runup because you had to be in nonmeat stocks and the message for the viewers, dont have phomo, you look at a company like Virgin Galactic<\/a> trading, 21, if you want a piece of space, do the research, look at the company, its a great time to buy if you like this thing, we dont own it. If you do, better to buy it today. We have been talk about sending regular people over to space for a decade, we really have. We have been talking for a long time and recently it seems its happening pretty soon next year. So if you were going to make that bet, it does feel like after all this time is about to happen, right . Stuart im not a space freak. Lauren me neither, im not going. Ashley more down to earth. Stuart kristina has something for us. Im waving because i just interviewed the ceo not at the nasdaq, im at the nasdaq, the New York Stock Exchange<\/a> 2 days ago and i brought the fact that youre seeing share drop price and its not that bad, its super soft, 8,000 people interested and possibly going to commercial space travel but the price track right now the price tag is 250,000 and told me it would increase. If you get expensive car, but could this be the future, could america afford, you know, the 400,000dollar trips to space, he thinks so, yes, because 8,000 people have signed up on this list and they are doing the very same thing as elon musk at tesla where you put a thousand dollar deposit. They just started that. Its interesting to track how many people can follow through with being able to afford the steep, steep trips. Stuart thats an option on a space trip. Maybe sell it. Jackie in endless search for bright spots, we turn to Jackie Deangelis<\/a> who has a couple. Good morning, stuart, trip adviser are bargain, they have been beaten down because of fears of coronavirus. These are not huge gain that is we are talk about here, little bit more than 1 for trip adviser, its a bright spot if you want to be exact. Also take a look at zoom video, theres the expectation that the virus spread further that people wont want to go into the office or itll be safer to stay and work from home. That would mean nor teleconferencing, you can see this is trading higher by 3 right now. And finally, take a look at live nation, also just around 3 , Strong Revenue<\/a> growth for this company. This isnt really related to the virus but shows you investors are out there and cherrypicking things. Back to you, stuart. Stuart i thought live nation put on concerts, do they . I wouldnt think that the future of concerts is that bright given ashley in the shortterm. Also managed a lot of talent as well, if youre watching a lot more constant at home, i mean, where do residuals go . Stuart you know what they call people on television . They call them on talent. Greatest misnomer in the world. You want to chime in on that one . Mike not at all. Stuart i dont think that on a friday you will see a sustained rebound because a lot of you trader guys, you dont want to be Holding Stocks<\/a> over the weekend when you might get anything happen with the virus. Mike a lot of times youre correct, over history youre correct, but the question is, stuart, have people sold on thursday and friday morning in anticipation of that. I think when you talk about investing and you talk about the market, one thing to remember is there are no rules, theres no this has to happen or that has to happen, thats why rather than predicting if we are going to close up, down, sideways or down plus or minus a thousand today, its looking at Companies Like<\/a> a microsoft that if you sold it hypothetically and went up ahmed you after you sold it and now come back before your sale price, its giving you an opportunity. Assuming you have cash you want to look for quality namesment dont try to pick the bottom of when the market is down, theres no rule, 15 , 20 , none of that matters. This is the way the market is, what the market is, take control of your portfolio, put money to work in names that you like. Stuart youre right. Absolutely right. Bottomrighthand corner of your screen, we are down a thousand points, 1,113. I want to bray in matt schlapp from the cpac conference. Matt, quite a day for you to be joining us with the dow down 4,000 points this week but nonetheless, i want to know if you think that the democrats and what they are saying about the president and the administrations response to the virus, do you think thats got anything to do with this market selloff . Well, let me say one thing, i know we are all worried. So a huge percentage of americans are invested in the america and everybody worries of these moments. I call a resilient economy and the worst kind of politics and to be gained, almost inciting a panic or a scare, our nation is leading the response. We have the entrepreneurs and the scientists and quite honestly the resources to respond in cases like this and so far what i have read, im concerned about, but its no need for a panic. No need to be scare. We have to look the problem scare in the eye and i dont want to blame nancy pelosi for the virus and its disgusting they are trying to blame President Trump<\/a>. Stuart use it for the election thats coming up. That would be my position. Let me turn to this one, matt, Bernie Sanders<\/a>, he has 31 support in latest fox news poll, hes way out front of joe biden who is losing ground. He is gaining ground. Again, is that a problem for the market because investors dont want a socialist as their president. It is true. I sat there for the last two baits. Bernie sanders might grab the title of socialism with certain amount of pride on his behalf, but all of the candidates have almost the same position. So whether or not they call themselves a socialists, they are socialists and i think its jarring for the American People<\/a>. You know, stuart, we went to war a couple of times to stop and put the nail in the coffin of communism in socialism and to think its creeping into the Democratic Party<\/a> and taking it over where i believe a majority of those voting in the primaries, they are not even quiet about it. They want a socialist and they want the policies, these policies will transform america, they say they want to transform america. You know what transform means, stuart . It doesnt mean make it better but completely change it. Stuart yeah, and im not sure we want that. Go back to it. Come see us again very soon, mr. Schlapp, thank you very much, sir. We have come back. A few minutes ago we were down a thousand and change and now down 804. I tell you. Isnt that extraordinary. Mike it just tells you people are buying, less than scrimmage, no one out there, very few people have the money to move the market a couple of hundred points one way or the other. Most of this is programmed trading. Since we have no clue if the next 500 swing will be up or down, take that and put it out of your mind. Yes, we have to cover it from a thousand point drop. From investment standpoint people are not trading the markets, make an investment based on whats in front of you which is the price. If you have a price that you like, make tin vestment. No one is saying its going up tomorrow. If you believe in the company longterm like an apple, you put the money to work. Stuart i see nvidia up 1. 50. They make chips for gamers. Mike the thought process if youre never going to leave the house you will spend more money on games and so people are saying, hey, coronavirus investment is nvidia chip maker. Stuart can we put up the face mask makers. Ashley 3m. Stuart im sure they are straight up again. I think they were up 100 yesterday. Theres a stock for you. Lakeland industries, up 32 as of today. Thats a direct response to the coronavirus obviously, and we did get this report earlier today, it was on reuters, suggested that the president does have power to Order Companies<\/a> to produce 300 million face masks, okay, you can see that the face mask is not that effective as warding off the virus but something that the administration is actually doing, something that ashley not just face masks, a lot of the products useed in the pieces of equipment come from china. Stuart exactly. We are doing the math and we can now tell you that the dow industrials are down 4,000 points this week. 4,000 points this week. The nasdaq is down 1200 this week. The s p down an enormous 452 points. I standby my claim, this is a rolling crash. Yeah, we are in correction mode 12 , to get to bear market the dow has to fall according to our stock market guru charles brady, it has to fall 2,125 points to enter bear market which would be 20 from recent highs. By the way that would end the bull market run because of how its defined. Stuart certainly would. Oil is what, 45 a barrel or down ashley yeah, 44. 79. Dropped below the stuart 16 . I dont particularly care about brent, north sea oil. Gold is down 36 bucks this week. Its a flight to safety. Its not. Its not. The flight to safety is treasuries. We have all the way down to 1. 18 it was. Ashley 1. 17 now. 168 on the 30year. Stuart Kristina Partsinevelos<\/a>, show me beyond meat. Are you looking at this massive drop, seems like investors are hungry for more and has to do with Earnings Report<\/a>. Earnings per share came lower than expected. A loss of 452,000 or i should say 452 million and this comes after two previous quarters of green. And its concerning given the fact that they are in 77,000 retail locations. We know the coronavirus has drastically, could weigh in on that especially any type of customerfacetype experiences. People weighing in onioned meat whether its a trend or not, they point out two major things. The fact that theres mounting competition from larger players that have more established supply chains like tyson foods, for example that are getting the plantbased patties on their own and the other, stu, thats especially important because you bring this up, the nutritional value of a lot of the nonmeat patties, theres still so many question marks around it, yes, its tasty, yes, it tastes a little bit like meat but whats in it and how bad is it going to be for our bodies especially in the future. Thats adding to the selloff which was 19 . There you go, 85. 85. Stuart kristina, i feel like saying like clara, where is the beef . Ashley just did. Stuart wonderful lady, Jackie Deangelis<\/a>, tell me about Healthcare Products<\/a>. 22 bucks, 150 , the stock is trading higher, stuart, this is directly related to the virus because allied Healthcare Products<\/a> is one of those that make respiratory equipment. So the idea is that this would be in high demand. It was halted for trading earlier this morning because of volatility that we were see seeing. Stuart i want to get word from susan about the possible gigantic stimulus for the chinese economy and Chinese Market<\/a> coming from beijing. We havent seen it, thats why. I would think they could spend 600 billion like they did in 2008 in order to prevent the financial crisis going over. They havent cut Interest Rate<\/a>s once, despite it has to 30year lows. Stuart okay, look, if they did, if they had the gigantic stimulus. I dont know if they will or they wont, would that help us . China grew double digits during financial crisis because they turned on the dollar and if they do that again mongeese around the world and could come to the u. S. And boost stock asset. Stuart you like the sound of that, mike murphy . I do. I dont think we necessarily need that. The chinese stocks held better than u. S. Stocks, people are pricing the u. S. As if we have a nationwide epidemic from coronavirus and i dont see it out there. And one thing if i may i would like to add, when people see like jackie point out huge moves that are tied to coronavirus, a lot of times you see stocks that are a thousand Percentage Points<\/a>, and for anybody at home you do not need to be investing in the companies. You wouldnt have bought them at a dollar a week ago. You dont need to be buying them at 15 or 30 today. Stuart look at that, 3m on your screen, theres a winner for you today because they are in the position to make lots of face masks and other medical equipment that would be required if we have largescale quarantine operations in the United States<\/a>. Minus 900 points as we speak. Now weve been in the red big time red all morning long, i think the best level we reached was my yous 200, Something Like<\/a> that and we have been down a thousand 86 at the low today, you are looking at a continuing selloff. I suppose you say its orderly, but thats what youve got, we are down 900. All right, we will clear you so you can go back and make some trades. Last word . Mike last word, panicking is not a strategy, you dont want to be panicked. You want to look at names and if you have cash on the sidelines, put your money to work at 20, 25 discount, dont try to play when the bottom is coming, you are not going to go, make sound investments, look out, longerterm investment. Stuart truly appreciate it. Im going to look forward, im looking to two bright stars sharply lower gas prices. I think they are coming down, way down. Your National Average<\/a> about 2. 45 per gallon. I think given the price of crude oil is 44 a barrel. Down 16 of the week. I think you can look forward to 2. 30 gasoline if not less than that. Second item to look forward to, Mortgage Rate<\/a>s. I think they will come down very, very sharply. Classically the bottom line for the Mortgage Rate<\/a>, the 30year fixed rate is the yield on the 10year treasury. The yield on the 10year treasury has come up, that implies a big drop in Mortgage Rate<\/a>s to come and welcome it. Lets give peter morici the last word, maybe on Mortgage Rate<\/a>s, am i right . I think youre absolutely right and that would be one of up sides in the market because itll give people confidence. The family motto, buy to the sound of cannon, sell to the sound of trumpets. This is the time to buy but prudently. Buy things you like as your panel has said. Buy the stocks that are good longterm place. Even as you say its a rolling crash, its going to recover and sharp recovery. The economy is fundamentally sound and we are going to be feeling much better about everything come june. Stuart okay, peter. Sterling work from you and we appreciate it. Thank you very much, peter. All right, reexam holdings down not much. Looking on the screen there. We have a 900point loss for the dow industrials, the markets have been open for exactly 1 almost exactly one hour. Its never been in the green, either the dow, the s p or the nasdaq, its always been in deep, deep red and thats where it is right now. We havent seen a significant bounce yet this friday morning. John lonsky, moodies chief economist is with us now, whats your perspective on this thing. I cant help to look at the vix, the last time the vix remained in range of 45 to 47 points, First Quarter<\/a> of 2009, the worst months of Great Recession<\/a>. Stuart its true. The equity market is trying to play us the replay of the Great Recession<\/a> awaits us. Im not certain that would be the case. Not at all. I think theyve gotten carried away. Where vix is right now, that equates to an average junk bond yield thats 15 Percentage Points<\/a> above treasury yields. That happened in Great Recession<\/a>. Its not going to happen any time soon. Stuart real fast, within a few minutes we have larry kudlow coming on the program. I will ask him what impact on the virus on q1 and q2 this year on our economy, what would you answer to that question . Well, i would say a quarter of percentage point from what i could see itll come back. You will get it back later in the year once the matter fades, okay. Stuart what do you think we will get in the First Quarter<\/a> . I think First Quarter<\/a> probably come in at about 1. 8 . Stuart 1. 8. Second quarter would not be great, overhang, quarter annual. Stuart stay with us because we have a lot more from you. Led let me go to edward lawrence, whats going on there . Yeah, its sort of a calmed preparedness. There are no cases in virginia but people are getting ready. The moment the first case came out of china first reported the Hospital System<\/a> started gearing up, stockpiling protective gears, talk about the masks, the gloves, the robes, eye wear that they have. They are also having starting on monday facetoface meetings two times a week with all departments, we are talking admission, emergency room, so if a potential patient or someone in risk zone they would be prepared. Everybody is on the same brain the person goes and to limit exposure and what to do. On those masks one quick point, 95 masks, they are prefitted at the hospital for hospital workers, they are airtight, those masks you buy at the store are not prefitted and they have thats the reason that hospital experts say here that the virus could get in the masks that people are just wearing around but for hospital workers they have the prefitted masks and the n95s do work for them. Stuart all right, taking precautions in virginia, thank you very much, edward. Do we have news on wayfair . Yes, the stock thats tumbling. 18 , it was halted the trading in the last hour. Now resumed, Fourth Quarter<\/a> net loss as just reported was bigger, 330 million or 354 a share. So this is the company that has struggled. Initially, there was a lot of positive buzz about wayfair, a lot of people using it but now not so much. The stock is really hurting today. Stuart when we stock a stock falling out of bed big time or moving up a little bit, we bring it to you even though you may not actually be invested in wayfair, we want to tell you about it. Same story with foot locker. Lauren up, almost 6 . They reported earnings not so god. This is for holiday season. Theyve been hurt by tariffs but no mention to have coronavirus if earnings and i guess investors like that. Stuart okay, we would like to keep in touch with new cases as they expand around the world, we had this morning news in france theres been doubling of number of new cases reported. Weve had updatings from all around the world. We have the first case in sub Subsaharan Africa<\/a> and that would be nigeria. And here is the news i think really got to the markets in europe especially, earlier today germany quarantined a town. Okay, not a big down but thats the quarantine in germany of a town. Big deal. What do you have for me, susan. We have byron reporting 2 new cases of coronavirus. One of them Saudi Arabian<\/a> national, travel, crossing borders and concern about Community Spread<\/a> afterwards after you reach borderline. Stuart update about the export of the virus from iran where theres a hot spot there. Thats right. Stuart earlier today we brought you a story about a dog in hong kong whose owner tested positive for the virus, the dog tested weak positive. Ashley veterinarians say no the dog did not have coronavirus, likely it was on the dog. They say, no, thats not the case. Its much like i mentioned the virus being on the keyboard, doorknob, much the same, the virus likely on the dog and not showing symptoms at all. Stuart that still revealed something to me. It is good news. That revealed that, you could get it by touching a surface, animal, fur, for example, if somebody sneezed on it or coughed on it. Ashley clean your hands frequently. Same thing in flu season. Stuart you get it by close contact with a carrier especially that carrier is sneezing and coughing anywhere you. I would expect to see people run a mile, anybody who has got the sniffles. Ashley any event that includes a thousand people or more. No more gatherings. Lauren top nih official told house unlikely it will extend next year. Told u. S. House maker unlikely the virus will disappear next year according to source in the briefing, at the same time the World Health Organization<\/a> is also raising its Risk Assessment<\/a> of the virus to, quote, very high at the global level, so theres not confidence out there. Stuart okay, do we have news on vaccines . We have more than 20 vaccines currently in development globally and there are several Clinical Trials<\/a> and as you heard from anthony fouci, will probably be sped up and still take a year, so hopefully the warm weather, i think people are hoping that the warm weather will help dissipate covert 19. Stuart im trying to think of what news we could hear either today or over the weekend which would put a bottom to the market and restore some confidence about the virus . Im not sure what that news could be. We do have who right now currently Holding Daily<\/a> press conference talking assessment of coronavirus at very high on the global given that we have 49 countries and 4,000 cases outside of china. Stuart 49 countries. 2 more today. Nigeria and new zealand. You have 49 countries as we speak. Any comment . Yeah, it may be just scuttled but has been some talk that central bankers will get together sunday evening announce a plan before markets open in asia. Stuart to your speculation i dont know if thats a fact, but yeah. Stuart some kind of sunday night before the asian markets open. Stuart thats your speculation. Great deal of talk of Federal Reserve<\/a>, 100 likelihood of rate cut in the middle of march, thats not speculation, thats what the market is saying. Right, the market right now is saying we will get 4 rate cuts this year, by the end of the year, fed funds 0. 63 right now at 1. 63. Stuart 4 rate cuts this year. As of december 2020. Stuart lets suppose we get that, john, what impact on the economy and the market . Well, its going to help, help interest sensitive spending. Its going to promote refinancing about standing debt and that, of course s is going to strengthen and help companies and strengthen financial condition. I think the fed has to do whatever is necessary to minimize we get from coronavirus. They have to go out of their way, see to it that we dont have a rise in bankruptcies, defaults because of cash flows, income lost to economic harm results of covert 19. Thats primary function. Stuart did they make some kind of announcement. Coordinated action to try to sure up Financial Markets<\/a> so that we dont have spillover effects to the real economy. Stuart are you saying they better do it . I think they should. Stuart all right, dow industrials down 900 points. We have target, look at that, down 3 bucks, nearly 4 bucks, 3 and a half percent down. Best buy is down again, didnt we report it was way down yesterday . A continual stream of down, down. 86 now down. Walmart back to 105. Nordstrom at 34. Kohls miraculously up 33 cents at 39 per share. Down 886 on the dow. Youve got the follow this moment to moment because its a live action market right now. We were down over a thousand, literally second ago, then we are down 880, now we are down 930, all over the place today. I think this is program traders, algorithms reacting to the latest headline relating to the selling thats going on, more selling going on. I think its am i right here . Is this thing computer driven at this point . To a large extent it is. You to blame the algorithms and whether you like it or not, this strengths Michael Bloombergs<\/a> call for transaction tax on stock trading, im afraid. Stuart that will cut down on the exactly. Or maybe move a way of taxing Capital Gains<\/a> where you have to hold the stock for a year before you get to benefit from the lower gains tax. Stuart youre killing me. Thats what people are going to call for. Stuart clamp down on wall street trade tester, tax them, tax them. Day traders are not going to like that. Lauren this is throwing darts at anything, sell now, ask questions later. We havent had any data at least any reliable data that shows the extent of coronavirus. We will get that, whether you trust it is another issue. We get manufacturing numbers coming out of china. Stuart yes. Do we trust the numbers, okay . Lauren it will give us something that may i add, im puzzled by the fact that we are not seeing Industrial Metals<\/a> prices get clobbered more because of fears over the coronavirus and the loss of Global Manufacturing<\/a> activity, i just dont see it yet. You know, again, base metal prices are still Something Like<\/a> 35 above their bottom of early 2016. That was china slowed on profits recession, you had at that particular point in time. That puzzles me. Why arent we doing worse . Stuart im sure you do. What do you to add . Ashley you talk about volatility, Virgin Galactic<\/a> shares and plummeting 4 days in a row and now up 8. 8 . Someone turned around and said, you know what, i want part of this. Stuart how about that . Ashley was that mike murphy . Stuart i wanted to get into futuristic industry. Okay, ladies and gentlemen, good news right now, larry kudlow is with us. Larry, good morning to you. We thank you very much for being was on a very, very important day. Right from the getgo, larry, what will you say to us that would calm things down . Well, look, stu, this is a complicated matter and i just want to make a couple of very key points right at the top. As the president said in his newser two nights ago, theres no higher priority than the health and safety of the American People<\/a>. Thats point number 1. Its a very serious matter. Not a political matter. This is about the health and safety of the American People<\/a> point number 1, thank you. Point number 2, by all accounts the president has taken historic and unprecedented actions and we really started this in january and have been going strong ever since. We believe and our top Career Health<\/a> experts believe that the risks here, the health risks and so forth are on the low side. They are low. We continue to hold that point of view and we have been advised again, by some of the topcareer experts and i know some of the folks because they are almost as old as i am and they have been around as i have, we closed flights from china where necessary and quarantined and our numbers remain low. If you go through the the numbers here, youve got u. S. Base 15 people but i was told this morning, the latest update, 6 of them had been released. 8 of them gone home to recover at home that. Was the basic one. The cruise ship, the 46 people were brought back, they are doing very well. One is in the hospital, okay, but theyre all doing very well and fortunately by gods grace no one has died yet. Thats a good thing. So im just saying we i just want to one thing, stu, here, look, again to clarify the press conference and the actions weve taken in the last 48 hours. Vice president pence who has had enormous experience in Public Health<\/a> from his days of governor of indiana and as house member, all right, hes now leading the task force and hes building on the excellent work thats been done by the Task Force Led<\/a> by alex azar and others and the effort continues. Weve actually broaden the people in the task force and that effort will continue and the last point i want to say, i dont think this one has gotten enough coverage, stu, both the cdc and the fda have expedited, have speeded up their approvals for experimental drugs and the application of drugs. I think thats very important. Its sort of deregulatory measure that will allow Great American<\/a> science and biotechnology to run as fast as it can to get engaged in this thing as much as needed. I just want to point that out, the seriousness of this and unprecedented actions. Stuart you must be dismayed by the democrats, what you want surely at this point is National Unity<\/a> to tackle this thing and youre not getting it. Stu, we would prefer unity but we dont believe the president does not believe this should be a political matter. He said that several times. The Vice President<\/a> has echoed that. This is not about politics. This is about protecting the health and safety and security of the United States<\/a> of america and the American People<\/a>. Its just that simple. I cant control nobody can control what folks are saying up on the hill or elsewhere and campaign trail. Its unfortunate that people want to politicize this but thats not our game and we want to work with congress, by the way, for whatever appropriations may be necessary and whatever actions may be necessary, whatever new ideas may be necessary. I was talking to Vice President<\/a> mike pence on the phone for quite some time. Hes traveling today, i think hes down in south florida. In any case, hes been on the phone with foreigners all across the country including governors from, you know, blue states, if you will. This has nothing to do with partisanship, mr. Pence has been on the phone with mayors. President trump has been on the phone. Hes been working the phones like crazy. This has nothing to do with politics, has to do with health, safety, containment so that the risk estimates will remain as low as possible. Stuart the World Health Organization<\/a> just raised Global Health<\/a> assessment to, quote, very high, your response larry . Well, thats their judgment. Im sure they are correct. Stuart okay. Im sure they are correct. The news somewhat interested. Theres a bifurcation developing thats worthying about. So tim cook who runs apple, one of the most brilliant businessmen in America Stuart<\/a> with susan li. Good for susan, i saw a chunk of that. His own production is picking up. Factories are reopening in china. All right, thats just his view but, of course, apple is deeply involved making the cell phones there and so forth. We also heard reports yesterday from china that starbucks starbucks store fronts were reopening. I dont want to belittle i mean, the china story is a human tragedy and also going to have very poor economics, the First Quarter<\/a> will be deeply negative. But looks like the case load is falling in china and looks like theres some progress. I understand in the stock market sense concerned about outside china, in italy, in iran, in south korea, japan. I understand that. I would say investors, of course, at this point, you know, there are a lot of options here, stu, this is a difficult story. There are many options here. Dont rule out more optimistic options. Im sure in the u. S. And elsewhere there will be more reports of a coronavirus cases but that does not mean that this is going to skyrocket in north america and u. S. And some reports are suggesting, im particularly interested in italy, we met yesterday with the g7 countries. Italy was represented, of course. That thing may be calming down and the number of cases maybe flattening out or even heading lower. Stuart okay. Ben carson, our wonderful head secretary who saw brilliant, one of americas greatest neurosurgeons, scientists, theres a lot of options here, some options are more difficult but some options are less difficult. I think people should try to be calm and balance and objective about this in their daily lives much less the stock market. Stuart lets get down to real detail on the economy, what do you think is going to be the impact of the virus on our rate of economic growth, First Quarter<\/a>, Second Quarter<\/a> . Weve had economists saying that First Quarter<\/a> maybe 1 annualized, Second Quarter<\/a> 1 and a half percent annualized, whats your number . Well, look, im not going to give a number. We have looked at this and we are scouring the data. Im personally scouring the data. I used to do it for a living and i love to do it. Here is a fact, stu, half a dozen or more regional Federal Reserve<\/a> banks have done their economic surveys around the country for the month of february and what we find in these surveys is business remains solid, the economy remains solid and in particular, and ive made a lot of calls to living, supply chain delivery problems for the u. S. Are not yet surfacing, that doesnt mean they wont, stu, i cant predict the next few weeks which may be crucial, but the supply chain numbers, let me add a couple of points here because this is awfully important. I want to base this on facts an not so much forecast and speculation. We saw today for the month of january a very strong personal consumer number. That jibes with the strong employment number in january. Unemployment claims which are realtime, unemployment claims remain rock bottom. Thats important. House housing numbers in january very strong. The atlanta fed gdp series which tracks daily numbers for the quarter, theyre looking at 2. 7 in q1. Thats in the atlanta fed. Their last reading was february 27th. So its as close to realtime. That doesnt mean that we may not have additional problems and that doesnt mean that the firstquarter numbers would come in lowers. In terms of facts what we see our economy is holding up very well. Stuart i have to get back to an element of speculation. The market selloff this week is very reminiscent of the market selloff in the early part of 2009. At that time the market was pricing in a severe recession if not a depression. Thats whats happening on the market right now. Are you going to tell us that theres no way we go towards recession and or depression because of this virus . Well, i think this is just the completely different situation, stu, completely different situation. There were factors engaged in 2008, you know, fed tightenings, policies moves with respect to Banking System<\/a> that were difficult to gain, i dont want to go through all of that, this is about an external shock from some called the coronavirus, its coming out of china and has nothing really to do with internal domestic conditions here in the United States<\/a>. By the way, i would also add in my meeting in the g7 yesterday, the other countries, canada was there, of course, and britain was there and france was there and germany, theyre not seeing any breakdowns. I mean, the economies have been soft but they are not seeing any breakdowns. They are not seeing actually coronavirus outbreaks. That doesnt mean that it wont happen. Im not belittling it, i dont think its having an impact here. I think there may be some additional cases here in the states but we still feel the risk of something very bad is low. Thats what our experts are telling us and i dont think this has a thing to do with 2009. U. S. Economy is fundamentally sound. Look, just the best way to do this, look at the actual numbers and if i come in a week or two and the numbers are deteriorating i would be the first guy to admit. All im saying the realtime numbers from the atlanta fed an unemployment claims and so forth are holding up nicely. The january numbers are doing very well. Now i know we are in march, but still looks like we will weather this and this is not going to last forever. It is not going to last forever. Stuart the last time you were on the show, look, its not your job to forecast the stock market. Look, investors should be looking for bargains as the prices come way down. Do you expect a rebound in the market . Well, an economy is fundamentally sound, my answer is, yes, i dont want to give you a cuddly strategy report here but i will say i said this earlier during this week and after talking to the president and the Vice President<\/a> and the Healthcare Task<\/a> force and watching everything that i can possibly watch, i would say or repeat frankly, you have to have confidence in the u. S. Economy and longterm investors, im not talking about the daytoday people and the Hedge Fund Guys<\/a> and the highspeed electronic, i understand the market is the market. I still think longterm investors should give serious thoughts to come back in or add positions in the stock market. By the way, warren buffet said something very similar to that. Thats still my basic view because, again, our threat assessment is low and the economy is fundamentally sound. Stuart it seems to me that the worst thing that could happen to americas economy is that theres a panic attack on the part of ordinary people, they stop going to the malls, they stop buying stop and stop associating and the economy slows right down but i think youre telling us that theres no reason for that level of anxiety that the Administration Team<\/a> can take care of the virus as it is in america right now. Should we leave it there . I think so. Look, stu, the president acted early and making smart moves, travel bans, quarantines where necessary, convening meetings, meetings here in the white house twice a day for many, many weeks and extended task force. We have been all over this and, again, theres nothing more serious, nothing more serious or high priority than protecting the health and safety and security of the American People<\/a>. I mean, weve been all unprecedented move. You talk today career staff, i have known a lot of the cdc people for years. Theyve never seen anything like the moves that we have been making just just to be sure that if things do get materially worse, we will be on top of that and we would be able to deal with that and people should think about that. The second point i want to make, not everyone is an economist in the world and looks at the business pages, but the reality is so far what we know, certainly through january and through february, the u. S. Economy is holding up relatively well. Now, this can change, i dont want to belittle it. I dont want to make mother forecasts, but we will see but the next weeks will be very important. Right now i dont think people should panic and they should be measured and calm and should listen to what their doctors, friends, neighbors are saying and i dont know, stocks are pretty cheap to me, stu, i have to tell you, work that in. [laughter] stuart you got it. Larry kudlow, very difficult day for everyone but thank you very much for being with us and being so open, larry, we appreciate it. My pleasure. Stuart thank you very much, indeed. I might point out with the interview with larry kudlow started we were down we are now down just over 800 points. I do not attribute the move to larry kudlow but it may have had some impact. John lonski, economist with us. What do you have to say . Larry is right. Dont make the big mistake of liquidating your 401 k plan, getting entirely out of stocks, because of this latest selloff. Hes also right that the coronavirus probably is not going to have much of a longterm impact on the health of the u. S. Economy. The solid fundamentals will reemerge. Theyre there still now. Stuart that is the statement. That is the most important statement. It will not have a Material Impact<\/a> longterm on the u. S. Economy. We are very strong. We are strong right now. That may change. But he says no longterm Material Impact<\/a> on the economy. I think im paraphrasing correctly. A lot of people in 2009 made the big mistake of selling off their equities at a very low price and lo and behold a year or two later, those portfolios were up by 25 , 50 , if not higher. Stuart i remember it well. Right from january 2009 through the middle of march 2009, that stock market just plummeted because people thought a depression was coming. It didnt and if you had held on or if you had bought at that point, you would have made a fortune. Incredible. Yes. Stuart what a day. Okay. Thanks, john. Let me update whats happening right now. We interviewed larry kudlow. We were down 1,000 points at the end of the interview, we were down 800 points. Thats where we are now. Ashley just want to point out gold, now down 57, 58. Reason being, im trying to work this out, investors cashing in profits, turning it into cash to cover margin calls. They have been in gold, taking those profits and using it elsewhere to cover their positions. Interesting. This is the worst day for gold. Oneday decline in over three years. Stuart thats internal workings of the market, about which we ordinary invest oors know nothi. 59 lower. Lot of margin buying. The margin calls are coming in, got to raise money somehow. Sell your gold. Ashley extraordinary. Stuart outsiders to wall street, we dont know whats going on. Ashley on a day like this, a week like this, you would expect money to go into gold, sort of a safe haven. The reason is no, they are taking the profits theyve gotten out of gold and covering elsewhere. Interesting. Stuart i would like to know the yield on the tenyear treasury. Ashley 1. 16. Stuart 1. 16. I believe that was the low of the day. Thats the low yield. All right. Here we go. It is 11 00 eastern time. We are resetting right here. Heres where the market stands as we speak. The dow is now down 750. Had been down 1,086. S p down 80. It had been down a lot more. The nasdaq is back to 8400. Its down 57 points, 1. 84 . Now look at the flight to safety. The yield on the ten year treasury blipped up to 1. 7 , still historically extremely low. Theres an enormous amount of money from all round the world flowing into the safety of our treasury bonds. How about gold . We show it to you again. The internal workings of the market are taking gold down, nearly 60 bucks an ounce. Bob doll with us, nuveen chief equity strategist. Im inclined to say, this stock market selloff is overdone. What say you . I think we will look back and say yes, things have been overdone to the downside. Markets hate uncertainty, stuart, and weve got a lot of uncertainty floating out there around the economy and what the hits going to be or not going to be, and i do believe at these prices we will begin to discount things that are a lot worse than they are probably going to end up being. Stuart are you buying anything now and if so, what . So i think we talk in broad terms, then we can get more specific if you like. When this thing turns, whether its having made a bottom or just going up before we have another test which is more likely, we are going to see stocks go up, bonds go down, Interest Rate<\/a>s go up, gold go down some more, the dollar go down. In my view, cyclical stocks, particularly ones that have a little more quality, are likely to do well and those defensive stocks that have done so well for months will probably be the ones to lag. So thats the positioning i want to take. It feels like catching a falling knife at this point to buy things but i think we will look back and say these prices were pretty good. Stuart did you just say we will retest the lows . Im trying to interpret this. That means okay, we are in for another leg down at some point, another nasty sharp selloff at some point. Is that what youre saying . Typically what happens, as you know, you get when you get a big selloff like this, you get a relief rally and then the market tends to fool around and drift back to where it was. Sometimes it makes a new low, sometimes its not at the old low. Typically done on less violence, lower volume, that kind of thing, then we go back and be constructive. That would be a typical technical pattern after a massive selloff like this. Stuart there is speculation, thats all it is, just chatter in the marketplace, about some kind of Global Central Bank<\/a> coordination, announcement at some point this weekend to restore some confidence first to the asian markets and if the fed gets involved, restore a little bit of confidence to our markets. Have you heard that chatter . I know its just chatter. Have you heard it . Yes, i have heard those same rumors. Obviously, could get Something Like<\/a> that to try the restore confidence. Part of the problem as you know is the market is already in u. S. Fed terms, discounting a couple rate cuts, so if they do one, the markets going to say okay, i guess another ones coming. The markets already done that kind of work for the fed to some degree but i dont dismiss it could shore up confidence. Stuart would you agree the worst thing we can see both for the market and certainly for the economy is a flight of fear, that people in america, this is in america, stop going out so much, start wearing face masks everywhere, stop flying, sop going to the movies, stop going to a Football Game<\/a> or baseball game, whatever it is, just stop associating, stop going to shopping malls . I think thats about the worst thing we could see. I dont disagree with you. We have reason to be concerned and vigilant and keep our eyes open and our ears open and listen and be smart, but i dont think theres enough out there to say oh, my goodness, im going home, im locking the door and hiding under the covers. That would induce a recession all by itself. That would not be very healthy. I generally agree with you. Stuart okay. Im looking for a longterm buy of some sort. Im looking at some of these big techs that are beaten down. If youve got a one or twoyear perspective, i think you should buy now. Last word to you. Yeah, so let me give you a few names. Health care, which we kind of like. Cigna and the hmo space, abbvie, 5. 5 yield. Its got some issues but its got a lot of potential as well. If you are a little bolder, the retailers are not going out of business. Target, best buy, these stocks are down more than 20 . Maybe they were a little expensive in 20 20 hindsight but they will be survivors in the long run. Stuart bob doll, thank you very much for joining us. Appreciate it on a very, very difficult day. Got that. Now, if you were watching the interview with larry kudlow just moments ago, he was very full of praise for our susan li and the interview she did with tim cook, ceo of apple. Shes with us right now. What did tim cook say to you about apple . Susan factories are coming back. In fact, he doesnt think this is a prolonged effect. Listen to tim cook. It feels to me that china is getting the coronavirus under control. You look at the numbers, theyre coming down day by day by day so im very optimistic there. On the suppliers side, we have suppliers, iphone is built everywhere in the world. We have key components coming from the United States<\/a> with key parts that are in china, so on and so forth. When you look at the parts that are done in china, we have reopened factories, so the factories were able to work through the conditions to reopen, they are reopening. They are also in ramp so i think this is sort of the third phase of getting back to normal. We are in phase three. Susan that sounds pretty positive, doesnt it. They have 42 stores, they had to shut all of them during the coronavirus scare. More than 30 have now reopened with limited hours. We will talk more about china, more about coronavirus, also education initiative, the work force, educating the work force in america and its relationship with President Trump<\/a> which i found very interesting as well. Its gotten a lot of pickup, its been positive for the markets and we will get to more of this interview, exclusive interview with tim cook in just about an hours time. Stuart great interview. Well done. Larry kudlow said he liked it. Thats pretty good. Susan did you like it . Stuart i have not seen it all. I promise i will. Thanks, susan. Before we go, i have nigel farage coming up in a moment. Before we go to him, i want to insert this brief political item. Joe biden has reversed course and now admits that he did not get arrested in south africa. Now, whether that makes any difference to the South Carolina<\/a> primary tomorrow, i dont know. But these political events have a place in our Coverage Today<\/a> because theres an important rally from the president in South Carolina<\/a> tonight and very important primary tomorrow and of course, the super tuesday primaries that will be next tuesday, march 3rd. Ive got to bring that to you. Now hear this. Nigel farage, chair and former uk leader. Welcome to the program. Great to see you again. Why dont you give us an update on the virus in britain and how a socialized medical system is treating it. Well, at the moment we dont have that many in terms of sheer numbers, not many outbreaks. We have been pretty rigorous when it comes to quarantine, so at the moment, the countrys on alert. Boris johnson himself is taking personal responsibility for it although we are told the committee wont meet until monday which does seem slightly odd, given whats going on around the world. And can the uk cope if it happens . I guess it can. What we dont know, of course, no one knows, is do we develop a herd immunity against this, or does the virus mutate into something really, really nasty. At the moment, nobody can answer that question. Stuart as you walk around london or any other town, city in england, do you see people wearing face masks, for example . Do you see less foot traffic . Is there a degree of anxiety . For the first time in my life, i have seen people, quite a lot of people actually putting on face masks. Not that im sure they make much difference. I also notice, for example, this morning, here in d. C. , had breakfast with the european businessman, he was due to go home for the weekend but he decided not to go home for the weekend because he has to be back in america next week and worries whether if he goes to italy he will even be allowed out. You can see already in terms of international travel, yeah, of course this is having an impact. I dont think people in britain are fearful but remember this. Today, friday of all days, prayers in iran have been canceled. That shows you in some countries this is getting pretty serious. Stuart real fast, i dont have much time, but looks to me like the rest of europe, not britain, the rest of europe is headed into if not there already, recession. Is that accurate . It is, very much so. Italy in real trouble, germany turning down, france, economically and politically very unstable. Bad day ahead for the euro zone, of that i have no doubt. A great time to have brexit and break free. Stuart i knew you were going to say that. You just couldnt resist it and why should you. Good stuff. Thank you very much for being here. Appreciate that. Got it. All right. We are down 900 points again now on the dow industrials. Lets bring in Kristina Partsinevelos<\/a> again. News on the retailers, please. Kristina retailers are getting hit dramatically. Theres two reasons for this. We know one, the ongoing trend of being not going to malls anymore, brick and mortar stores. Thats been an underlying theme all along. We have been talking about that. The major hit today is a lot of Company Earnings<\/a> came out and this fear that people are not going to be leaving their homes. We focus on best buy. They had a strong earnings quarter. They had Great Holiday<\/a> sales. Yet you are seeing the stock down over 2 . Jc penney, they have announced they will be closing six stores. For penney its a very special comb case because the company has been struggling so this is an opportunity for them to save money. Dont forget, we told you this about a few weeks ago, they received a letter from the New York Stock Exchange<\/a> that they have a short amount of time to turn their stock price around to above 1 or they will get kicked off the New York Stock Exchange<\/a>. Thats something for penney to worry about. You have keurig dr. Pepper that missed on earnings. They have stronger guidance, they believe people will drink their coffee heading into the next quarter and i dont think we have it up but Urban Outfitters<\/a> also, sales were a little higher and this is a teen bought type store. Across the board even retail etfs getting hit today. Stuart very good indeed. Thanks very much indeed. We have not yet tested the low. The low this morning was a minus 1,080. We have not gone back there at this point but we are still with a very strong selloff, as you can see, bottom righthand corner of the screen, down 900. Change the subject for a moment. Christian whiton is with us. I want to bring up the story about the police in hong kong. As i understand it, they have arrested the prodemocracy media tycoon jimmy lie and another prodemocracy advocate. This seems to me chinese authorities are not wasting a good crisis. They are acting in the middle of the virus problem. Thats right. This is not unrelated to whats going on in the market, with coronavirus. You have the sort of only tycoon in hong kong who is very prodemocracy who founded a paper thats very popular in hong kong and taiwan and takes a profreedom editorial line. Typically the question is why now. They could have rounded up jimmy and these other two pandemocrats, prodemocracy former members of the Legislative Council<\/a> in hong kong, they could have done that at any time. Why now. Jimmy actually wrote an oped in the wall street journal recently that said wuhan, the outbreak of the virus really shows the fragileity of chinas political system and economy. This syncs with the chinese hysterical reaction to walter lees writing that china is the sixth man of asia. They are very sensitive about that. Frankly i think the pressure Chinas Communist Party<\/a> and its economy is actually underappreciated. In the United States<\/a> we are overestimating the impact of wuhan. In china we may be underestimating it. Stuart good point. This is the reason we wanted to talk about hong kong and china. The effect of this virus that its having on the chinese economy. It seems to me the economys at a standstill and they are very close to going into negative territory, where they are actually shrinking. Are we there yet . Right. If you juxtapose the two situations, in the u. S. The market looked kind of pricey going into this crisis, 26 times earnings on the s p 500. Now its about 20 which is where it was a year ago. China, on the other hand, was already at about zero growth. Now its probably in very steep recession. Economists have begun to sort of realize this but i think are underestimating how it is because factories are still just shut. They are saying thats changing, that they are reopening some of these, you saw what tim cook said but frankly, we have to doubt that until we see it, until we see proof, because they have been wrong in the past, they have misled in the past. Stuart got to go. We are about to lose the satellite signal. Thanks very much. Good story. Prsht you bei appreciate you being here. Thank you very much. Bring back bob doll, please. Bob has a list of stocks which he likes. We will put them up and go through them. You did mention them earlier. Lets go through. First, target and best buy. You like them . Yeah. We do. I go back to amazons, we will get into the Retail Business<\/a> a few years ago. These companies woke up and said we are going to change and they did. Target used to be able to buy their stuff by going into their store, going down the aisle, find the item, go to the cash register. Now you can buy it online, you can get same day delivery, there are lots of ways to do it. These stores are changing. Yeah, i understand the environment with coronavirus, nobody is ever going shopping again but im not sure thats going to be the case. These are companies that are gaining in their business. We want to look past the valley. It feels like catching a falling knife. Best buy just reported phenomenal results in our view so these companies, they will be back from what feels like the dead. They are down more than 20 from the high just a couple weeks ago. Stuart you are looking way past the virus with target and best buy. Next, i think you like cigna. You like cigna and abbvie. Tell me about those two. Yeah. Obviously both of them, the health care business. Abbvie has a big product coming off patent in 2023 but they have a lot of oncology a andimmunotherapy drugs that are on the market. They made a big acquisition, they are digesting that. That company has a 5. 5 yield and can raise its dividend because it has great cash flow, paying down debt. The cigna story, the hmos consolidating business, continuing to be companies that can grow their revenues amid high Single Digits<\/a> and therefore have earnings per share, high single low double digits and they will make it through, they are consolidating. This one is really cheap. They also made an acquisition not that long ago and are paying down debt. I like stocks that are off 20 that have good longterm prospects. We think these four companies do. Stuart bob doll, thanks for being with us. Before we bring in our next guest, i want to wrap the market. This is important. We are down 795 points on the dow industrials. I want to repeat this. We have not retouched the low of the morning. Right after the market opened, we just plunged and at one stage we were down 1,080. 1,095, did you say . Down 1,095. That was the low of the morning. We have not gone back there. We have not retested that low. What happens this afternoon, i simply dont know. Theres a lot of people saying that after 2 00 in the afternoon ashley the final hour. Stuart watch out. Remember, it is a friday. Youve got the weekend to come. There might be people unwilling to hold stocks right before news that might break about the virus over the weekend. For now, we have not at this point retested those lows. Now lets get a sense of what its like on the ground when youve got coronavirus cases in your state. Steve hilton is with us. Whats the number now . Is it 8400 cases being monitored in california . Tell me the mood there. That is the number of people who have been monitored but remember, theres another important number that we should bear in mind which is the number of people who caught coronavirus in america. That is the number one. One person. There in california. Its being covered widely on the local news here, as you would expect. The governor had a press conference yesterday with his top team, bit of a same sort of thing as the president did the other day from the white house. Governor newsom. The interesting thing there was you had the usual graveintonations from the governor about how seriously they are taking it and so on. The thing that stood out to me was the head of the Public Health<\/a> agency in california actually brought us somewhat back to reality where she made two very important points which is one, this coronavirus is a version of the common cold. The common cold is a coronavirus. And in more than 85 of cases, the advanced majority of cases, if you get it, remember so far only one person has got it in all of america, actually caught it here. If you do get it, the symptoms for the vast majority of cases are mild or nonexistent. So i actually really agree with the sentiment you and your guest were expressing earlier which is theres too much hype, too much fearmongering around this because actually, when you look at it, the threat here is far different from the comparisons, for example, that are being made with ebola. In the case of ebola, the death rate was 90 . With this, the death rate if you dont have any other illness is 0. 9 , 100 times worse in the case of ebola. Its really ridiculous to make those sorts of comparisons. Stuart before we leave the subject, whats the atmosphere in california . Do you see a lot of people wearing face masks . The lady from Orange County<\/a> yesterday told us theres less foot traffic in the malls. You see a lot of face masks . What do you see . Not too many. There are certainly some. We were on the train yesterday picking my kids up from school. We saw a few people there. Someone completely wrapped up. But i dont detect anything that different, frankly. I think theres a lot of media talk about it, the local media is absolutely full of it. But in terms of daily life, i really havent noticed that much difference. I think thats the right approach, frankly. Stuart heres another subject which we have discussed at length this morning on the program and that is the democrats who i think, im going to i dontuse a strong word, disgracefully politicizing this event and really trying to hang the virus on President Trump<\/a> as kind of a weapon and strategy in the election, i think its reprehensible. What do you say . I couldnt agree more, stuart. I think it is exactly as bad as you describe it. The way i put it is that this is almost the moment they have been waiting for, one thing to happen for three years. For three years now, you have had the antitrump critics in the media, in the democrats and never trumpers all Say Something<\/a> of the same words which is well, wait until he gets a real crisis. He hasnt faced a real crisis. When theres a real crisis, his disastrous personality and character and behavior will really be a disaster for the country. So finally they have got a real crisis. This is the moment they have been waiting for and they are exploiting it for all its worth. It is absolutely reprehensible exactly as you say. Stuart im sure you will cover this on your show sunday night on the fox news channel. Steve, thank you very much, sir. Much obliged to you. I want to bring in john lonski for a second because i noticed the dow is now down just 700 points. When we started our interview with larry kudlow we were down 1,000. Now we are down 700. Larry kudlow did his best to say look, this is not going to have a profound impact on americas economy. You agreed with that. I do agree over the long term. Doesnt have a profound effect. I want to add, when you look at that tenyear treasury yield, less than 1. 2 , the treasury bond market is giving policy makers a green light to go ahead and announce that they will try to do whatever is necessary to prevent the coronavirus epidemic from doing harm to the economy or further harm to the Financial Markets<\/a>. Stuart you are back to your point theres a lot of scuttlebutt, speculation, gossip about Central Banks<\/a> getting together, making an announcement, revive the market . I think a lot of hand holding sunday afternoon, sunday evening, could go far in helping to stabilize markets next week. Stuart fascinating, isnt it. It really is. Longterm fundamentals still positive. Very positive. Stuart larry said that as well. Hold on a second. We have news on big lots. Lauren the stock is down bigtime for big lots. Disappointing holiday, warning on the current quarter, supply chain disruptions they are noting because of the impact of the coronavirus. The stock is down just about 30 . For a retailer like big lots and some others, its not only a supply issue with the supply chains out of china, its also a demand issue. Strategists say coronavirus will pass in the next several weeks or months but conspicuous consumption is fading and fading fast. Stuart 30 in one day. My goodness. Thats taken to the cleaners. Kristina partsinevelos, you have something on what companies are telling their employees about travel. Thats important. Kristina it is important. Right now, theres an absence of a Global Health<\/a> guideline so companies are taking it into their own hands to tell and warn their employees of how to act. We know nestle released a letter to their employees, the latest is cocacola kraft telling their employees to also not travel to affected areas. Off the record, this is again anecdotal, one hedge fund showed me the letter. Theres a list of several companies that they are not supposed to travel to. Should they travel there, they have been told to selfquarantine themselves for 14 days. That means that if they plan to go anywhere near china, when they return, if thats even possible, they would have to stay home for 14 days. Another european bank, i spoke with somebody there, they have an office, large office here in new york city, within the bank they have already been having meetings throughout the day to take precautions as to how to go ahead in the next coming weeks. Im not trying to elicit fear at all but people are preparing. Thats what we are supposed to be doing. So these bankers are talking about where they are going to work if they should go back to their hometowns outside of new york to be able to avoid any type of spread. Because we already are talking about Community Spread<\/a>. Overall, this is the underlying theme we are seeing now, Companies Taking<\/a> control and curbing travel, telling their employees not to travel. This of course will continue to affect the airlines. Stuart yes, it will. Youre right. Thanks for joining us. Good stuff. On that note, i notice that American Airlines<\/a> is down over 30 this week. Thats a major global airline, down 30 in a week. Come back in, please, bob doll. Heres two groups i wouldnt touch with a tenfoot pole, cruise lines, airlines. Not going near them. Yeah, i think for the near term, thats probably right. But if you, based on the conversations you all just had, this is going to pass without doing major damages, into fear come opportunities and so i wouldnt have zero in the airlines. If i own nothing, i might start nibbling on United Airlines<\/a> or delta or something. Dont have to be a hero. Dont be big overweight. Thats when you make some money. Stuart it looks like somebody beat me to the punch. I notice the cruise lines are all up this morning. They were beaten so much they are going up a little. Thanks for being with us. We appreciate it. Thank you very much, sir. Look at norwegian, royal caribbean, carnival, they are up. Show me oil, please. It was at 44, 45 a barrel earlier. Thats because of just the complete lack of demand around the world. Oil is, where is it . Can you show me . All right. Okay. Weve got 44. 27. 44. 25. Ouch. Down 6 in a day. Jeff flock, what have you got for me . Reporter they think maybe a bottom has been hit in oil because we are starting to recover right now. We were down below 44, believe it or not. We hit 43. 90. We have now run back up. This is interesting here. I will get to that in a second. First, gold. Gold continues down, about 3 . Traders are saying thats as a result of people getting squeezed in other investments and being forced to liquidate. Heres the thing. Talking about the fed all day today. Fed fund futures, we reported earlier for the first time, were looking at 100 chance of cut in march, whether a half point or quarter point. Here is the april numbers. 51 chance of a half point cut in april and 38 chance of a threequarter point cut in april. So you know, lot of people have been talking this back but the market is betting now on a cut at least in march and maybe more. Stuart okay. We hear that. Thanks very much, jeff flock. All right. As we have the price of oil on the screen at 44 a barrel, i have to speculate on the future price of gasoline. I have to believe its going to go down bigtime. Because we have gone from, what, the mid 50s to the mid 40s for oil. Weve got gas pegged at an average of 2. 45 per gallon around the country. Ive got to believe that goes to 2. 30, 2. 35. Ashley it goes down slower than it goes up. Thats always the way. But it will go down. Stuart i want to see prices falling this weekend. I will be driving this weekend. I want to see them go down. You got that, gas station owners in new jersey . Thats where i buy my gas. Who have we got . Jackie deangelis . Come in, please, from the exchange. Give me the big movers. Jackie we are looking at some positives in the tech sector which has been beaten up so hard because of a lot of these companies exposure to china. You are seeing the chip stocks a little higher today. Looks like people are going bargain hunting and buying some of these. And the thought is that these chips are used in personal computers, gaming systems. A lot of this stuff may come in house in the sense that people dont want to go outside, they will be doing more in their homes and we can see a little bit of boost in some of these names. But xilinx, nvidia, qualcomm, a little bump up today. Stuart i dont want to get anybodys hopes up, but i will repeat this. The markets been open for two hours. The low of the day was a minus 1,095. We have not treeretested that lt this point. Whether or not thats a good sign, i dont know. We are down 700 right now. I suppose we can take some comfort ashley back above 25,000. Stuart take some comfort where you can. Elizabeth macdonald just crept into the studio, silently placed herself next to me. Down 680 now on the dow industrials. You are the anchor of evening edit. Liz yes, i am. Stuart you are with us this morning. What have you got to say . Liz i have been working the phones. My notes are crazy. I was talking to a bunch of my wall street guys. They are saying this is a governmentdriven problem. What do we mean. When they saw the whistleblower saying stuart we have not reported on this. Tell us the story. Liz so the whistleblower, hhs whistleblower said basically the Health Workers<\/a> dealing with the military bases out in california were not properly protected. We know this virus is asymptomatic. In other words, people dont show symptoms but are still contagious. When traders saw that story, and we were tracking it last night, we saw the futures started to go haywire. What they are saying is you let people back into society, potentially contagious. They are saying the government response is hitting sentiment, its government driven right now, the action on the floor. So what they are saying is not enough cdc test kits, only five states have them. Cdc has only tested less than 450 people. They are saying they dont see fundamentals changing in seven days time. Market fundamentals are there. They have a problem with the government response right now. Stuart ive got a problem with this whistleblower story. Note the use of the word whistleblower. Thats exactly what we had in the impeachment stuff. I mean, i think this is the press, the media, looking for a negative. Maybe they found one, maybe some workers were not properly protected when they escorted those people in and out of the military base. Okay. Maybe thats a point. But they will blow this thing up because they want to get at President Trump<\/a> above all else, they will blow it up into a major item. Liz i hear what youre saying. I hear what youre saying about that. I understand exactly what youre saying. The further addendum to that is they are saying new york city doesnt have tests. In other words, the federal response is going full bore right now. The federal response. They are saying at the local level, its a real problem for local populations. New york city doesnt have tests and other localities dont have tests so i dont mean to say its just a federal government reaction, its a local, state and city reaction, too. So you are going see deep emotional swings. Is it overdone vis a vis the market fundamentals . Thats the debate raging right now. The stock action is traders are selling richly valued stocks and they are ready and poised to buy. You cant ever call a bottom, right, but thats the talk on wall street now. Stuart i personally think its been overdone. That would be my opinion, bearing in mind the fundamentals. We dont know where this virus is going in the United States<\/a>. We dont know. Thats a problem. Liz final word, Goldman Sachs<\/a> saying zero, no Earnings Growth<\/a> for the s p 500 for the year. 1 , u. S. Gdp growth. Jpmorgan chase, 1. 5 gdp growth. They are digesting all the headlines, then you see whipsaw action like we see this morning. Stuart now we are down 585. We were down 1,095 points. Now we are down 580. You can expect that on a day like this. Extreme volatility. I got it. What do you say, mike . 500 points off the low. 500 poin. Im not predicting what happens the next four or five hours of trading. Thats quite a comeback. Liz 40 times we have seen this since 1929. You see snapback rallies within a year. We have to say its really about getting the confidence back for investors, for society, and thats it. The government response, local and city and towns. Stuart stay there, please. I want to bring in market watcher david nicholas. I want you to weigh in on this idea that my idea that this selloff has actually been overdone. What say you . Stuart, absolutely. I have zero concern about the coronavirus itself. Where my concern lies is as americans, our response to the coronavirus. Its really been somewhat ridiculous. We just got to keep this in context. We discussed the flu in comparison but 16,000 americans have died from the flu this season. Where is the hysteria there . So when we look at this, we have to understand Many Americans<\/a>, we have to be okay with this, Many Americans<\/a> may get the coronavirus and guess what, the majority of those americans are going to fight it, move on, be just fine. Two weeks from now they will be paying 6 for their starbucks coffee. Some of this, when you look at the hysteria on wall street, we think theres hysteria on main street and theres just not. If you are selling today, i think a month from now, two months from now, you will look back and regret it because i think as quickly as markets fall, i think markets will rise. Baseball is one month away. Warm weather is one month away. I think a lot of this will blow past us. We just have to be okay that the coronavirus is nothing more than a type of common cold. We have the ability to fight it and i think the situation gets much better from here. Frankly, im actually shocked by some of the response we have seen in the market. Stuart tell that about the common cold to the mothers and fathers of young children. You might get a different response. I understand where you are coming from. I really do. You tell me what are you buying . Im sure you are buying something today. You know, we are taking a Risk Management<\/a> pose. We are using call options to give us our upside risk. We like broadbased index options on the s p 500. If you are using a call option, if you are sitting on the side did lines, that allows you to get in the market with lower exposure. Just a few names. If you look at a company like apple, apple has been sold off over 20 since the top. If you regret missing out on a run like apple, this is perfect opportunity to get in. I also like retailers. My wife is not stopping shopping at target. I think shes heading there today. I like a retailer like target. I think a lot of retailers are getting beat up, theres some great value today. I think you can confidently buy in a market like today and know a month from now you will be much higher on the upside. Stuart you think we will get a rebound in a month . Short term as that . Stuart, i think this is so ridiculously overblown. Again, this isnt about modern portfolio theory. This is behavioral economics. This is psychology. This is its almost textbook to see whats happening here. Again, i think the rate of the drop we have seen over the last week, i think we can see a quick rebound in the next couple weeks. Im optimistic. Look, i have two small kids, 3yearold and 1yearold. We are concerned about that, but we also understand that again, as americans, our Health Care System<\/a> is not china. We have one of the best Health Care System<\/a>s in the world. We are well prepped and prepared to handle the coronavirus. My concerns are not with the virus. My concerns are with how americans react to it. I hope cooler heads prevail. Stuart thanks very much indeed. Liz, what have you got . Liz you know what you are not hearing on wall street . No one is talking about a flash crash. No one is talking about invoking the circuit breakers. No one is talking about really bringing back in the uptick rule, where you cant do a short sale unless prior trade is higher. They are not really talking about that. What they are also saying is you cant compare whats happening now to prior downturns in 2001, 2002 or 2008. Structurally this is a much different market. Remember etfs caused a lot of that flash crash. S. E. C. And market regulators fixed that. And 01 we were on the brink of recession. 08 we were on the brink of downturn. This is just fear. Stuart we have not seen a virus attack us like this around the world, for heavens sake. Wait a minute. I want to go back to beyond meat. I believe its way, way down. Why are we covering beyond meat on a day like this . Its down 17 . Tell me more. Kristina what a day for beyond meat. This has a lot to do with the Earnings Report<\/a> that came out. I would like to correct myself. Last time i spoke, i said a loss of 452,000. I got worried, thats got to be 452 million. It is actually 452,000. Im coming across another survey that adds perspective to how the company could do in the future. This comes from piper sandler, they surveyed over 4500 americans and out of the survey they asked would they have a preference for plantbased patties, would they like to try it. 62 said they were not interested in consuming a plantbased food product. I cannot say where these americans are based. Maybe they are based in midwestern countries counties, i should say and states, but mcdonalds, too, there was another survey separately about mcdonalds and suggesting that the beyond meat plt sandwiches, the plant based sandwiches, have seen disappointing sales so far due to a high price point. Again, you can get beyond meat at mcdonalds, beyond meat was also pulled from tim hortons in canada due to disappointing sales. So it depends on who you speak to about whether this is going to ride this fad and become an actual permanency within the meat market. Sales have been doing quite well, beyond meat has been soaring of late. Just this past quarter has been disappointing. Stuart why on earth would you walk into mcdonalds and ask for a beyond meat whatever you want to call it . Kristina to that point, say im going with a group of friends, everybody goes to buy burgers, i dont want to be the odd man out, i dont eat meat. Maybe i will try the plt sandwich or just stick to french fries and the salads are not very good. Stuart when was the last time you went with a group of friends to mcdonalds . Kristina touche. Touche. You got me, okay . You got me. No, no, no, you got me. I have not been in a mcdonalds in awhile but i have been in Dunkin Donuts<\/a> and have tried their sausage patty that has no meat in it. And i have tried the tim hortons version as well. Just out of pure curiosity because we cover the company so often, we talk about it, i got to be able to say how it tastes. It tastes the same. Whatever. Stuart you cant see but ashley is here, digging your hole. Kristina i know. I know. I cant see you guys. Im red right now. You got me. You got me. Stuart our advantage. Theres nothing wrong with a spot of levity on a day when the market is really selling off sharply. Kristina true. True. Stuart youre all right. That is a fact. Look at this. We are only down 400 points 500 points at this stage. We were down 1,095. Do we have chris with us . Yes, we do. Chris meekens is the former health and Human Services<\/a> Deputy Assistant<\/a> secretary under President Trump<\/a>. Chris, you say the worst is yet to come. By that, do you mean you can expect a lot more cases in america . And if thats what youre saying, can we deal with it . Yeah, i think thats a great question. I think when we say the worst is yet to come, we mean from a global perspective, you are going to continue to see outbreaks across the world. We saw that in south korea, after we put out the initial note, we saw that in italy over the weekend. And i think we will see it probably here. Stuart are we better equipped than anybody else to deal with it . We are better equipped than most people to deal with it. But three weeks ago, when i was having this conversation on fox business, i said you know, u. S. Has the cdc and Global Leaders<\/a> in infectious response and then over the last two weeks, i have lost a lot of my confidence, sadly. The failures they made with the testing kits, the fact that they continue to have guidance that they only changed last night, where unless you were from china, you couldnt get tested so if you were coming back from south korea or italy or any of these other nations that were infected, you werent able to actually get tested to even know if you had the virus. Thats a real problem. Stuart i do hear, though, we are bringing a lot of resources to bear on the cdc, with the cdc, and we will have that test pronto, real fast. Is that accurate . They told us the same thing four weeks ago whenever they got the test out and they got it out within two weeks. Look how great this is. Now two weeks later, we still dont have a functional test at the 137 state and local labs. That being said, i dont think this is something thats like a bo ebola but this is something people need to be worried about and at least at the minimum, take basic Public Health<\/a> precautions going forward. Stuart okay. Chris, sorry ive got to leave it there. Just an exceptionally busy day. I have to update our viewers on the market. Chris meekins, thank you very much for joining us. We appreciate that. Thank you. Take a close look at that. We are down 422 points. Im trying to do the math here. That means we are about we are [ speaking simultaneously ] stuart as the market moves go, this is not that bad. We were down 1,095. Ashley thats true. Stuart now we are down 428. Look whos here, thank heavens. Andy puzder, former restaurant ceo. My position is this. This selloff is overdone. You say what . It absolutely is overdone. People were anticipating that the market was overbought, everybody was talking about there was going to be a correction, not if there would be one, when there would be one. People kind of expected this. Then you had the changes in the Democratic Party<\/a> with the potential for biden or bloomberg to be the nominee. I think people thought if its biden or bloomberg, maybe the rld wou world doesnt end. Now its pretty obviously going to be sanders. People were nervous about that. Then corona hits. The reaction was exaggerated by these other extenuating circumstances but people should calm down. Look, the fatality rate in china is about 2 , 3 . It will be half that here in the United States<\/a>, if it hit broadly and i dont believe it will hit broadly but we will see more cases. I dont think we will see like china does. Stuart we have cases in america now. We are checking people in california, 8,000 people, we are checking. You think we can contain it, our administration sharp enough, good enough on the ground, contain it . I think if anybody can get control of this, its mike pence. Hes a very competent guy. Hps a sma hes a smart guy, well liked in washington, d. C. But nobody knows whats going to happen with the virus. Im not here saying it wont happen. Im saying so far, we kept it pretty well under control. I think we will be able to do that. Worst of all possible worlds, within a year we have a vaccine. Stuart thats what it comes down to. Can we keep it contained in america. Can we do that. Liz we are working the phones. Israeli scientists now say they may have a vaccine in three months time. The science minister is saying that. The scientists are tracking the dna of this coronavirus, similar to what they found in 1997 with the bird flu. They are seeing that they could possibly get a vaccine in 90 days. Israeli scientists. We have to human test it. Thats the problem. The vaccine was prepared in 42 days, a company out of cambridge, massachusetts. They got it at the nih. We are on the way. Stuart we are now 800 points off the low of the morning. Ashley rebound in tech, a little bit. Facebook was up, amazon was almost flat. Apple, microsoft. So that has helped lead the way back just a little bit. People are starting to say personally, i was sitting in the green room updating my list of stocks to watch. You are starting to see yields come up a lot higher than they were just a week or so ago. Stuart apple and microsoft have reversed. Facebook was down a fraction, apple is now positive. That makes a big deal and big difference to the dow industrials. Now look whos with me. Marc lotter, trump 2020 campaign. Marc, welcome to the program. Good morning. Stuart one of our themes today, im strongly opinionated on this, i dont think the left should be attacking President Trump<\/a> and trying to make him responsible for the virus. I think it is absolutely reprehensible and i know you are going to agree with me but come on. Pound the table, please. Yeah, this is straight out of the obama playbook, never let a crisis go to waste. But what we need from democrats is to join with this president. The American People<\/a> dont want to see politics. They want to see everyone come together and deal with this. Weve got it under control but trying to score cheap political points is not to anyones benefit and i would hope that as democrats, they would put their politics aside, join with the president and lets move ahead and do whats right for the American People<\/a>. Stuart you got a big rally tonight in South Carolina<\/a>. I know they are lining up already. But you know, theres some question as to whether or not you should be bringing tens of thousands of people together at a moment like this. What do you say . Well, i think this is just demonstrating what we are saying to the rest of america, go out, live your lives, continue to do what you are doing. Whether it is shopping, spending, going to work, going to school, and this is an opportunity for the president to not only speak to the folks in South Carolina<\/a>, but also to the American People<\/a>. I think its just a great signal that life in america continues. Everything is fine and lets just everyone take a breath and calm down just a little bit. Stuart im going to leave it at that. I do apologize because its such a busy day, ive got to cover this market. Look, thanks very much for being with us. We really appreciate it. Thanks. Marc lotter. Thank you very much indeed. Check that market. Show me the board which has all the dow 30 stocks on it. I notice that we have now slipped to a minus 500. In the space of a couple seconds, you have gone from ashley just like that. Stuart i do see a little green. Microsoft, exxonmobil, United Health<\/a>. Is that cisco . Ashley yeah. Stuart so five dow stocks are in the green. Theres a revelation, ladies and gentlemen. Exxon is interesting. The fact exxon is up is encouraging. Stuart im astonished. Oil is down to 44 a barrel. Ashley its coming back, getting close to 45 again. A little more money going in there. Everything is relative. Liz you know whats really interesting, what else is driving the market. Jeff gundlach, the bond king, saying why did United Health<\/a> plunge further than the s p 500 dropped the other day. It did because the Bernie Sanders<\/a> accelerating in the polls. There are Different Things<\/a> hitting the markets in terms of the sectors. You cant discount what is going on in the Democratic Party<\/a> right now in terms of those nominations. Stuart the latest fox poll, this is a national fox poll, shows that Bernie Sanders<\/a> now has 31 support. A clear double digit leader over joe biden. That to me says bidens on his way out and it says to me that Bernie Sanders<\/a> is headed really straight towards the nomination. I agree with that. But i have a different read on this than i think a lot of people do. I think its making people nervous. I feel great. I think if theres one guy trump could beat in his sleep, its Bernie Sanders<\/a>. Those of you in the market that arent investing, because you think Bernie Sanders<\/a> might be president , forget it. He will never be president. The other day he comes out and says trumps policy is that people are going to die. Because they wont get the vaccine. Poor people and working class people. What kind of idiot would say that . Do you honestly think the president of the United States<\/a> isnt going to make sure poor people and working class people get this vaccine . I mean, this is i cant wait for this ashley careful, andy. Careful. Stuart you know what im going to say. Before the 2016 election, donald trump was written off. People were laughing at him. The idea that he could become the president of the United States<\/a>, oh, what a laugh. Ashley he wasnt spouting socialism. He wasnt running against an incumbent president. He wasnt running against a good economy. Liz you cant win the white house if you lose florida. Even Florida Democrats<\/a> are saying whoa, what are you talking about, supporting castro. Just quoting donna shalala. Bernie sanders keeps trucking out the scandinavian model. The scandinavian countries there are saying we dont have wealth taxes like you are saying. We dont have a minimum wage like you are saying. By the way, when he touts the castro cuba model and illiteracy, it was a reeducation program. He doesnt go first focus on the gulags where prisoners are still chained underground in cuba. Hes trying to rebrand himself as a democrat socialist. We have to say china calls itself the peoples republic of china. North korea has a term democrat in the name of its country. So you know, i think that its slipshod what his candidacy is. You will see a brokered convention because he doesnt have a majority of the vote. Nancy pelosi is already saying im pushing back on bernie right there on that. Stuart one of these days you will tell us how you really feel. David nicholas, are you still there . Real briefly, you tell me, are you worried that Bernie Sanders<\/a> is now the frontrunner for the democrats and looks like he will get the nomination . Yeah, i have never been more excited to think about a joe biden win in South Carolina<\/a>. I think that would actually be some positive momentum for the markets. But yeah, it is a concern. I will tell you this. As long as we stay out of recession and i think we will, its very rare for the party in office to lose. I think if the economy slips, its a very real possibility that Bernie Sanders<\/a> could win the nomination obviously and also become president but i think that is such a small chance. I think Bernie Sanders<\/a> is the best possible thing for republicans down ticket. Might bring some market volatility but i feel confident hes not going to win. Stuart we wont argue with you. Thats a fact. Thanks very much for joining us. Look whos here now. Andrew left joins us. Okay. Hes on the phone, cant actually see him. Welcome to the program. I know for a fact that you are buying two stocks, amazon and apple. Make your case, please. I mean, amazon, obviously if this continues, the virus, its the ultimate stayathome stock. It just had a oned fuwonderful. Its not going anywhere. You can go to bed at night, aws is firing on all cylinders. Regardless of what happens the next month, two months, i think amazon is a really great opportunity to buy the stock right here. Stuart i see apple has come all the way back today from i think 259, now its at 270. The producers emailed me, it was 260. Thats just one day. Stuart make your case on apple. People still have a quarter left, they missed the boat, they are waiting for an opportunity, yes, apple has china exposure but if people want to buy good stocks, investors want stocks, they are looking for an opportunity to buy, not a speculative stock, amazon and apple, you know, so you dont really care what happens monday. Stuart you are really talking about people who have a longer term horizon, like if you can go out for two or three years, theres no harm done in buying apple and amazon today. Youre not trading this thing. You are in it for the longer term, right . It shouldnt even be two or three years. It gets to a point that if we can contain the virus which they should the next few months, these are the stocks people will buy again. You should see a quicker Response Time<\/a> than a few years. But if things happen to get worse, these are franchises, these are real businesses trading at fair multiples that you want to own. Stuart thank you very much for joining us on short notice. We really appreciate it, sir. See you again real soon. Now, completely change of pace here. I want to bring in laura curran, Nassau County<\/a> executive, and dr. Larry eisenstein, Nassau County<\/a> health commissioner. Ladies and gentlemen, we brought you in because you have 78 cases of the virus on long island within your jurisdiction. First to you, laura, whats the anxiety level in your county . Are people worried, anxious, not going out so much . Wearing face masks . Set the scene, please. Well, just to clarify, we have no confirmed cases in Nassau County<\/a> or on long island. Stuart im sorry. Thats quite all right. We are currently monitoring about 70 right now. Those who have recently returned from china who voluntarily are isolating themselves for a period of 14 days just to make sure they are free and clear. We have tested, we have sent down to the cdc six cases, six tests, they are all negative. So we have no confirmed cases in nassau. I think its really important. People are anxious, i hear it when i go to the grocery store, at the gym. Take a deep breath, calm down. There is no crisis, there are no cases at this time. Please, just take care of yourself, wash your hands. If you dont feel well, stay home and call your doctor. One thing we are also pushing for stuart im sorry, im interrupting because i really do apologize, you do not have confirmed cases in Nassau County<\/a>. Correct. Stuart i do apologize for saying that. I just want to make that very clear. Thats quite all right. Stuart im glad you did. You have got, this is voluntary selfmonitoring of quarantine, these 78 people, does that work . Its worked very well. The way the process has worked, the cdc notifies us with a list every day of people that are coming into the United States<\/a> that have been in china. We have a very vibrant Communicable Disease<\/a> scheme of disease investigators who reach out and establish the guidelines very quickly with every returned traveler, we establish theres a safe place for them to voluntarily be isolated and removed from the public. If they need food, we take care of that kind of thing for them. They have actually become quite appreciative that they get such guidance as far as what they are allowed and are not allowed to do and more importantly, if they are to feel sick, they know that they reach out to us and immediately, we put a plan in place. It hasnt happened yet where we have needed to take somebody into a hospital for testing. But they know they dont have to panic, they dont have to run anywhere. We will arrange for the transportation safely. We will notify the Health Care Facilities<\/a> so that nobody in the waiting room would be exposed. And its been a lot of hard work around the clock, nights, weekends, but very successful so far. Stuart would this be true of anyone arriving in Nassau County<\/a> who has been anywhere near china in the last two weeks . You bring them all in for this selfquarantine . Sto the cdc guidance has bee almost for the month now, anybody who has arrived and been in china in the last 14 days, and one of the first things we do is evaluate with them exactly where they have been. Stuart okay. Laura, back to you for a moment. Go ahead. Go ahead. I was just going to say, we are pushing hard to make sure, right now we have to send all samples down to the cdc. We are working hard to have our clinic that tests for the virus to be validated, to be approved by the cdc here in new york state, in the capital, in albany. We are working hard towards that end right now. I think that would really stuart im sorry. Give our residents reassurance we can do it here. Stuart theres a delay on the line here so its rather difficult to have the conversation. One of the themes on our program today has been that one of the dangers for americas economy is that people stop going out, stop mixing, stop going to the supermark supermarket. Foot traffic in Grocery Stores<\/a> goes down. Have you seen any of that in Nassau County<\/a> . People are anxious and my message to them is go about your daily life. Go to work, go to school, go to the store, go shopping, go out to eat. But take care of yourself. Wash your hands. Use hand sanitizer. If you are not feeling well, stay home. Dont go to work. Dont go to school. Call your doctor. If i can add, i have been asked by School Superintendents<\/a> and elected officials, should we be canceling sporting events and the other. There are no confirmed cases anywhere in new york state. The way that the Health Department<\/a> here in Nassau County<\/a> is handling this as well as across the state is we are preparing but we absolutely do not have any cases and people should go about their normal lives at this point. Stuart this is very important that you appear on this program today. We do thank you. Larry and laura, good stuff. We do appreciate you being here. Thank you very much indeed. Okay. Thank you. Thank you. Stuart my takeaway from that is theyve got this situation pretty much nailed down. Ashley absolutely. Stuart i like to hear that. Because thats very important. Youve got any level of anxiety anywhere in america, youve got yourself an economic problem as well as medical and human problem. Thats what youve got here. Last word before you do the evening edit . Liz the cdc was aggressive in putting out the word early what was going on. With travelers coming in from china. I just think, you know, the test kits need to get out there. Thats it. Stuart get on with it. Got it. Andy puzder, have you bought anything since you came to fox this morning . I have not. But i was in the green room going over the list, keeping my eye on things. I was going to call my stockbroker. One thing, these restaurants, you have a little time, restaurant stocks are declining more than they should. A few years ago it would have been pizza hut and dominos that benefited if there was a disease like this because people could order from home. Today everyone can order any brand from home because of third party delivery. Amazon does that for all retailers. It wont be as bad for retailers. Stuart im not in that market. I never ordered food. Lauren the only one. Stuart hold on. A few things to mention. Tim cook interview coming up with neil, neil cavutos show. Thats the full of that interview susan li did. Next week, weve got our super tuesday coverage. This is a big deal. March 3rd is when super tuesday right now watch neil, here he is. Neil or stuart, thank you very much. Were keeping a close eye on a market that continues to freewayfall, down about 1,000 points at one point, down about 700 right now. Forget about a correction, the dow and the s p seem to be zeroing in on what would technically be a bear market. The closest weve gotten recent time toss that development, in other words, a fall of upwards of 20 , would be back in december of 2018. Cooler buying heads prevailed. We bounced back from that, and its been cawptty bar the door ever since. Of course, we are concerned about revisiting that. Jackie deangelis following all of it now. Reporter good","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia802902.us.archive.org\/34\/items\/FBC_20200228_140000_Varney__Company\/FBC_20200228_140000_Varney__Company.thumbs\/FBC_20200228_140000_Varney__Company_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240716T12:35:10+00:00"}