 The Morning Markets Kickoff with your host, Tommy O'Brien. Hey, buddy, I'm Tommy O'Brien, coming to you live from TFNN headquarters in St. Petersburg, Florida, 8.30 a.m. Monday morning, one hour to go until the opening bell, and we have a negative market in a pretty dramatic fashion to start things off. Right now, you've got Dow Futures, negative 451 points. You heard it correctly, that's more than 1.5% in the red, trading at $28,482. S&P Futures, negative by 49 right now, that's 1.5% as well, trading $32,44. NASDAQ Futures leading the way down off 162 points, that's about 1.8% in the red, trading at $89.82, it's a NASDAQ 100. Oil, negative $1.49, the oil slide continues on a growth concern, having to do with the coronavirus in China, and that's spreading across the globe. Oil down at $1.49 or 2.7% at $52.70, bonds trading higher in price, lower in yield the 10-year, 1.62% as the safe haven of bonds is where investors seem to be flocking to. And we're going to start things off this morning with the Volatility Index. As you may expect, markets opening up between 1.5% to almost 2% in the red. You have the extension of the fear on Friday, pretty remarkable that we go from almost a 12-handle on Thursday. We almost hit a 19-handle at about 6 a.m. this morning, 1876, the high on that Volatility Index, 1845 currently, with 1 hour to go until the opening bell. Let's jump over to the markets. We'll start things off with the Dow. We'll back it up to last night, and you can see the jump. Things began right away. Futures open at about 28,613 in the Dow, and we've extended those losses. The slide is about 3.30 in the morning. We go from 28,690. We're currently sitting right near the lows 28,484. S&P 500, pretty similar action. We open at about 3253. We're now about 10 points below that level, 3243. The low overnight, 6 a.m., 3236. NASDAQ 100, the NASDAQ, the leader in negative territory, we open at about 9,011. We make it all the way down to 8,944, currently trading 8,975. There's your crude oil market, pretty similar action. We closed last week at 5,429. Keeping things in context, folks, you back it up. We were almost at $60 to begin last week. This week, 5,269, we actually made it down as low as 5,216, almost got a 51 handle on the price of March crude. Gold catching a bid made it as high as 1585 at 6 a.m. last night. When we opened, we were up at 1587 last night, Sunday, 6 p.m. in the February Gold Future and the Euro-US Dollar trading at 1,1028. All of this having to do with the Wuhan coronavirus, more than 2,860 cases now confirmed that death toll rising to 81 people on Monday. Chinese Premier visited the epicenter of the outbreak. You now have China extending the lunar holiday. Their market's going to be closed until February 3rd. That is a week from today. You have an—and to get into it, we now have 2,862 cases, the death toll rising to 81. Pretty remarkable over there. In terms of what else you have happening in the market. This sinking to the 41—excuse me—410 points. The Dow 438 points at one point is where it was. China is the biggest driver of global growth, so this couldn't have started at a worse place in terms of just the number of people. The stocks that you look to in terms of biggest action this morning—we'll jump over the charts in a moment—airline stocks, American and Delta, both down about 3 percent pre-market united 3.2. Of course, stocks like Las Vegas Sands and the wind relying on Macau, 7.2 and 5.8 respectively, MGM down about 3 percent, travel stocks, Expedia, Carnival, Marriott all pull back at least more than 2 percent, consumer shares with exposure to China, Apple, Disney, Nike, Estee Lauder dropping 1.9, Caterpillar, a bellwether for global growth, 2.3 percent, jumping over to some of those charts as we pull it up. We'll jump to the airline stocks first. United, looking to open at about 78.85, closed at 81.90. Delta, DAL, looking to open at about 56.50, closed at 58.81. We'll jump over to Apple, closed at 3.18.31, made it as low as 308.59, now at about 3.11.75. Boeing, Boeing dealing with their own woes, they had a plane that supposedly went down—believe it was in, not sure, but there was a Boeing that potentially went down—Boeing, out with their earnings on Wednesday, they'll have a conference call, they have a lot to answer for outside of the coronavirus in terms of the 737 Macs, they'll be dealing with their own woes, their earnings on Wednesday under their new CEO, a huge week this week in earnings overall. We get 145 stocks this week alone of the 500 S&P stocks. Some of those stocks, as we pull it up right now, we'll jump over. And here we are. So DR Horton, they're already out with their earnings, I believe. DHI, let's jump to them this morning. And there's the action. You actually had DH Horton spiking to 60.26, pulling back now under the close of 58.51 you had on Friday. We also had Sprint earnings this morning, delivering some subscriber growths, but looking to be pretty much where we were in terms of closing it Friday at 483, Sprint right now trading right at 483. The rest of the week, some of the bigger stocks out there, you got Tomorrow, 3M, Harley Davidson, Lockheed Martin, Pfizer, United Technologies, AMD, Apple, eBay, Starbucks, Xilinx after the close, Wednesday, Anthem, AT&T, Boeing, as we mentioned, Dow, MasterCard, McDonald's before the open, Facebook, Microsoft, Mondaliz, PayPal, Tesla, I mean, it's a huge week in tech and a huge week just overall. You got Apple Tuesday, as we mentioned, Facebook, Microsoft, Amazon on Wednesday as well. Ah, excuse me, Amazon on Thursday, Biogen, Coke, Eli Lilly, General Electric, Hershey, UPS, Valero, Verizon before the open on Thursday, Visa. Some of those credit card companies will jump over to those in a moment. They're getting hit hard, especially as well in terms of growth concerns. People not able to spend money as they're just basically curtailing that growth because of the virus. And Friday, Caterpillar, Colgate, Palmolive, Chevron, Exxon before the open, jumping over to some of them. As I mentioned, Visa, as you'd expect, closed at 205 down about 2.5% at 200.60. American Express, with their earnings last week, great earnings Friday morning, but the coronavirus fears curtailing some of that profit as they spiked to 138.13 on Friday. As the market started to pull back on Friday, you saw a lot of those gains paired, and it looks like American Express is going to give back almost all of those gains back to where we closed at Thursday. They came out with their earnings. You see it on the Thinker Swim platform, we're looking to open about 132.04 this morning on American Express and some of the other bigger stocks out there. Earning this morning, closed at 140.08, looking to open 136.36, Nike shares, 102.03, looking to open under 100 to 99.49, McDonald's I mentioned, earnings this week, closed at 211.24, looking to open at about 207.50, no matter where you look in this market, folks, with indices down between 1.5% to 2%, red across the board, fears gripping, the markets will be right back, folks. If you're in the CD market and looking for a secure investment, the Tiger First mortgage program may work for you. The security for these first mortgages are building lots in the tax opportunity zone in St. Petersburg, Florida. The Tax Act of 2018 set up tax-free zones across the country where you can build and hold for 10 years and pay no tax on the profits, which makes these lots valuable. The investment is anywhere from $30,000 to $75,000. The interest paid is 7% yearly paid on a monthly basis. According to bankrate.com, the best rate for a four-year CD in the country as of February 20th is 3.1%. 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As a flight to safety, a flight to the bonds, the note market, have Treasury yields falling to the lowest since October. I heard this morning you have the yield curve flattening to now just 18 ticks between where the two-year and the 10-year getting into it. Here's your two-year, 1.45%. You have the 10-year now, 1.62. That's actually 17 ticks as the curve. You see the flattening, three months, 1.52, the year 1.52, you get a dip in terms of the two-year and the five-year down to about 1.45 and then you're back up to about 1.62. But that difference between the two-year, 1.45 and the 10-year, as you've really seen that 10-year pullback pretty strongly as there's been just a flight to safety. As people pull money out of the markets, flight to safe haven, risk off as they call it in the markets. So, the 10-year note, 1.6194, the 30-year bond also lower 2.076, 10-year Treasury yield touched a low of 1.603% this morning. And in terms of other news we have happening this week, so we covered the earning sector in terms of the economic calendar. New home sales coming out this morning. We have Dallas Fed manufacturing, that's the other thing we haven't touched on. It is Fed week, folks, lost in all of this. It would be interesting to see in terms of what Jerome Powell cut, not even priced in remotely, but boy, oh, boy, if we get a huge acceleration, if we get dramatic growth fears gripping the market, I wonder if that will play into the Fed meeting coming in the first one in January. That begins tomorrow. An announcement due on Tuesday and there will be, excuse me, an announcement due on Wednesday and there will be a press conference. Tuesday, durable goods, December preliminary, 0.9% expected, 2.1 negative being the prior. Durable goods transportation, jumping to Wednesday, MBA mortgage applications, wholesale inventories month-to-month, pending home sales. Thursday, we get GDP quarter-on-quarter, fourth quarter, 2.2 expected, 2.1% expected, 2.2% was the third quarter reading. You get personal consumption, PCI, core PCE, quarter-on-quarter, lots of numbers coming out. Of course, you get continuing claims, jobless claims, initial claims, week ended, and then employer cost index, personal income in December. So lots of numbers coming out this week. And I mentioned it before and there is the headline that there was Boeing main passenger plane crashing in Afghanistan it was. So that hitting Boeing shares this morning as well. And we got to mention it pretty sad story over the weekend. I'm sure you may have heard about it. It's pretty remarkable that you can almost assume everybody has heard about it because the man was such a legend. Kobe Bryant, his daughter Gianna, who is 13 and seven others dying in a helicopter crash in California yesterday. That news reverberating around the globe yesterday. Sad story, quite an amazing man legend in the world of basketball and also remarkable that he was in the news the day before because LeBron James had just passed him for number three in the all-time scoring. So when people started to see that headline, it was kind of like, is this for real? And sure enough, sadly enough, it was. Life is short, folks. Pretty remarkable, sad. Kobe Bryant dead at the age of 41 as of yesterday and lots of sadness and lots of tributes paid to him in the games yesterday. There are 24, a lot of the games going on with the 24 shot clock, second shot clock expiring in remembrance of Kobe Bryant. Back to the markets, J&J. So as we proceed in this coronavirus, Johnson & Johnson, chief scientific officer said he believes the drugmaker can create a vaccine in the coming months, boy, oh boy, months. I mean, this is where things get dicey. We've seen an escalation now where I believe on Friday when we started things off. There were 400 to 600 confirmed cases. We kick off Monday morning with 2,860 cases. We began Friday morning to put things in context with one confirmed case in the U.S. I believe we start off Monday morning with five confirmed cases now in the U.S. Months, that could get pretty dicey if it takes months, but that's, I imagine, even quick in terms of how a virus vaccine could be created. You have Johnson & Johnson, chief scientific officer. Now again, he's, of course, going to be touting his own skills, keep this in context. But they have dozens of scientists working on this, so we're pretty confident we can get something made that will work, stay active for the longer term. We'll see in the next few weeks how this goes. Chinese officials said there are now more than 2,800 cases of the flu-like coronavirus. One of the most—one of the scariest things about this virus is that it reportedly has a two-week incubation period, that you could be a carrier for two weeks, not even know it, not show symptoms, and be spreading the virus. That is pretty scary, to say the least. Most countries are also reporting coronavirus cases, including the U.S., which on Sunday confirmed the fifth, as I mentioned. The new strain comes from a large family of viruses known as coronavirus. This strain, though, brand new, they are known to cause illness ranging from the common cold to more severe diseases such as the outbreak of SARS, which was now about 17 years ago, 2002 to 2003. This gentleman said the pharmaceutical company needed to start from scratch on this vaccine, much like how it operated in the Zika outbreak, though Johnson & Johnson could shave two to three months off of that due to technological advances. We're going to take an approach with at least five different constructs and different partners and collaborations over the world in order to see which part of that virus we can use to make an effective vaccine, and hopefully they have some success. Several companies, including Disney, are suspending operations. You have Disney Shanghai closing. You have McDonald's and Starbucks closing stores across Asia. Also, temporary ban in wild animals in China as China just really tries to reverberate things to kind of clamp down on that market, jumping over to some of those stocks in particular. Mickey D's, excuse me, 207.41. You see the slide from even Friday, 214. And we mentioned Starbucks, SBUX as well. It was up to 94.28 at the beginning of Friday. Looks like we're going to have an 89 handle to start things off this morning on Starbucks. Checking back in on the VIX as things reverberate, 1846. VIX just kind of hanging there right now on that market. And Netflix this morning, jumping around. Netflix actually getting an upgrade, still trading lower. But Netflix getting an upgrade on the fact that cord cutting is accelerating. And I would have to agree with that just fundamentally. Myself, I cord cut myself. And I got Netflix, you got Prime. I might get Disney Plus, the Hulu, the ESPN Plus streaming service. Netflix, quite a pop on Thursday and Friday, traded from 323.30, all the way up to almost 360 at the beginning of Friday, now back to about 345. And in terms of high flyers, got to check on the biggest high flyer of the mall recently. Tesla made up to 594.50 as of Wednesday, backing off a bit. You now have Tesla this morning, looking at about 539.74, but putting Tesla in context, folks. Even, let's just back it up 20 days. How about that? We were almost at 400, almost made it up to 600, let alone if you back this up even 180, you were down in June at 176. The run really began when we were back in about October 23rd at $252, in the span of a heartbeat, you were above 300. And you haven't even looked back. And then you back it up to about December 5th from 330, and you almost doubled the price of the stock of Tesla from $326 when we were out there at about December 5th, now trading 539.50 this morning in Tesla. Stay tuned, folks. We'll be coming back to wrap up the show. We'll show you what else we have on tap for this week at TF9. We'll be right back. I'm certain you are or strive to be one of the best of the best at everything you do in life. It's the most common trait that we tigers and tigers share. If you're looking to become the best of the best when it comes to managing your money, let me teach you to do what most wealth managers tell you can't be done, which is how to time the markets. 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Don't forget, you can listen to TFNN live on your mobile device 24 hours per day. Go to TFNN.com and hit Watch Tiger TV. That's TFNN.com and hit Watch Tiger TV for the latest market information. Welcome back, folks. Market's right where we started off. 1.5% of the red for the S&P, that's 49 points off. Dow futures off 1.54% or 445 points in the red Nasdaq futures off 1.8% right now. 165 points, Nasdaq 100 futures in the red right now. Chuck, jumping around to some of the other stocks, as I mentioned earlier this morning, you had Estee Lauder getting a downgrade this morning on those fears in terms of the coronavirus growth. Looking open about $197. I mentioned the casino stocks. There is win, $124.21, and we had Las Vegas Sands as well. Looking open about $63, closed last week at almost $68. What else is happening in the market? It's an interesting week for a webinar, folks. Check it out on the front page of TFNN. Larry Pesavento, Wednesday night, two days from right now, he'll be with subscribers to Fibonacci 24-7. And folks, great day to sign up. Larry put out an awesome report over the weekend, as he normally does. He's got like 20, 30 charts in there, videos, a full in-depth write-up. It's a weekly wrap-up he puts out on Sundays. He's already got a video out this morning and a couple charts. You gain access to all of that. You gain access to the 90-minute webinar, taking place Wednesday night, right after Tom's program, four till 5.30. That will be archived if you can't attend live. Right on the front page of TFNN, click on that link. You can see a little bit more about what Larry's going to be talking about. I encourage you to check that out Wednesday evening, 4 p.m. Larry Pesavento out there. What else? One final check on the markets, folks. We'll jump through the charts as we get ready for this market to begin. There's your Dow 30. We're hanging at these levels since we began the program. 28,500 on the dot right now, S&Ps, 32.44 for a little context. S&Ps, pulling up where we've been. We were just at record highs, folks, 33, 37 Wednesday morning. We are now at 32.44. We reached 32.35. That's more than 100 S&P points from where we're at Wednesday to where we were as of 6 a.m. this morning as markets escalating to the downside. I appreciate you joining me. Stay tuned. Larry Pesavento coming up live at 9 o'clock. Don't forget to check out his program, his workshop on the front page of TFNN. Thanks, folks. Have a great day. We'll be right back.