>> i picked the higher seed almost every me. >> you're in sixth place, becky. >> two left in the final four. >> that's a problem. my fault. >> you discuss the brackets. i'll thank alan krueger. say hello to mr. krueger for us. >> "squawk on the street" begins right now. good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer at new york stock exchange. faber is off. final full week of the quarter. futures up,spite disappointing flash pmi out of china, eight-month low. plenty of data. fed speak on the calendar. europe slightly in the red. road map going to go like this with the markets set to open higher, despite the disappointing chinese data. as often is the case, bad news

is sometimes good news. a big week for ipos, more than ten companies set to go public, including king, maker of candy crush. how many companies expected to rally when they start trading. apple in early talks with comcast about a new streaming television service. so the big question is this the apple tv we've all been waiting for? >> first up, s&p hit new intraday highs on friday, ended up closing to the downside. over the weekend, on cbs sunday morning jim cramer offered best advice on best ways to achieve financial independence and secure retirement. take a listen. >> how do you go about managing your money? first, there's two different kinds of investing. and that's why you should have two different portfolios. you've got your retirement portfolio, self-explanatory, where you want to keep money in tax favored vehicle like a 401(k) or individual retirement account. i.r.a. for short. >> nice work.

fits what you've been saying about the market having two personalities, too. >> exactly. the people, discretionary accounts should consider the higher flyers but one of the things that's worried me, we've seen, let's say, all of the crm companies, cloud companies, they've been getting killed while new cloud companies, that i regard as their inferior spurred up in the marketplace in the ipo. senior biotech companies annihilated last week but not new ipos. that not tenable. something has to give, and give this week. you can't keep having the second tier ipos do better than the first tier existing companies. >> you think friday's reversal was -- >> i'm watching gill add, henry waxman, i knew him from the early days, writing a letter, exorbita

exorbitant. the insurance companies welcome it versus the cost without it. a gill add shouldn't be hit the way it is. charges come in, watching the 50-daybreak. this has to change. if we don't see the big biotechs stabilize here, and i don't think they will yet, because i think sellers come in immediately when they see them up, then this whole ipo window -- i mean we've got way too many ipos. last week the ipos were so thick that you could not keep track of the amber roads and the paylocities. salesforce.com is down. you can't have two markets. house divided will not stand. >> bracing for another big week in the ipo market after we saw a lot of companies skyrocket in their debuts last week. we mentioned king digital, maker of the popular game, candy crush. cbs outdoor americas, advertising unit of cbs. and delivery firm grub hub, raising anticipated size of its ipo to $178 million.

cbs outdoors the big one here this week. >> it is. that's the one that seems the most -- credible. i have to tell you, when i did comps for candy, for king, it not expensive. making a lot of money. doing well, if they use -- if they use the range, if it doesn't go nuts, people are going to say, hold it zynga, no. this is a better company than zynga. >> why? they make money. >> because they make money. zynga was losing -- do you know zynga had players dropping out, even as it came public, they came public too late. the business was rolling over. this company, candy crush, hitting this is a very important game that is still moving up. so, if they price it where they're talking about, that should not be the calamity. i'm far more concerned about any company that claims cloud. this morning cisco says we're cloud. ibm says we're cloud. cloud is something that makes it

so a company makes less money, not more. we see this software service, they do human capital, the niche of what we saw software as a service for last week was truly worrisome. if these companies were so great, why didn't workday buy them? why didn't cornerstone buy them, oracle? they've always been a quiztive. but not these companies. i don't trust these companies. take a look at fire eye, goes to 96, security, unbelievable. stop the target thing, if target listened to them. 96, goes to 82 on 14 million shares and goes to 68. when did we last see that in one other time i ever saw that, 2000. you cannot do these stocks that go up big, do a secondary where the sellers are so happy to sell, no matter where, and the stock gets killed. fire eye, a great company. >> but a big explosion on the float on that fire eye. >> yes. that's what causes -- things get loose.

yelp today recommended -- i think yelp is a terrific company. i do not want to see a second, gigantic yelp secondary. we had one before. what that says the insiders are like, all right, hey, we know our stock's inflated. anybody thinks that their stock's inflated, you have to wonder why you're buying it it. >> yeah. >> jmp outperform. >> yes. yes. i look at yelp every morning, i have a restaurant, it's powerful. you don't want to run afoul of it and the app is great and mobile's great. again, it's an expensive company. you don't want to see big secondaries. >> cisco, spending a billion over the next couple of years to get into cloud computing services. too late to take on amazon? bad news for the rack spaces. >> rack space, i don't trust. it's always too late to take on amazon. i was out in seattle last week. >> yes. >> some of the -- they were grateful zulily could beat

amazon. you need to come in against an amazon with a superior product. i don't know how cisco does that. i just don't know i mean at that particular aspect of amazon's business is extraordinarily good. >> interesting piece in the "journal" telegraphing what cisco may be up to. another piece in the journal, apple stories in the news. apple's in early stage talks with nbc universal comcast with a service that would stream apple content to tv sets bypassing web-related congestion. secondly, apple considering a muse ex-serviic service to comp spotify. apple sees sharp decline at itunes store. sounds leak the comcast talks are in early stages, and people are talking with everybody all the time. >> right. what's important, people have been saying when is apple going to do something tv? this is something definitely. if you go back over the history of what steve jobs did, he was

not cooperative. he was saying, by fiat, here what happens we're going to do. comcast, parent company of our network, cannot be ruled. but a cooperation for a box that is more intuitive than your current box, i think, would be welcomed by a lot of people. >> a lot of discussion how it gets around the net neutrality rules. who retains closer relationship to the consumer. do you log in with comcast or apple i.d.? >> i don't know. netflix last week complaining, after they had a deal with comcast, did they anticipate this and say, hold it wait a minute, maybe our deal isn't as good as what apple could be doing. apple's being prickly, watching everything that is said, i don't mind that. one thing they will not like, they will not like the comment this morning from ubs saying apple could surprise the upside here q3 launch. they are adamant, no one knows how they're doing, so stop making projections.

you have ubs note, that is moving up the stock, and you have the comcast news, and i would say both are not something you want to hang your hat on, because there are many discussions and every attempt that i've seen to gain what apple is going report has failed. be careful, apple, on the way up. i think sellers come into the name. >> thinking of a tweet someone sent to you saying amazon should have bought netflix early and wrapped it into prime and you said, you're right. >> would have been something. when netflix -- when netflix was at 100 or even 150, this is what you need. netflix retains its glow. would have been unbelievable for amazon and netflix to combine. all of the way up, people thought netflix was expensive. i didn't. now i think it's it too late. too late to buy netflix. but also too late to take on amazon. >> one corollary, twitter is shutting down its music service apparently due to lack of demand. i wonder whether or not you think they're beginning to put some caps on twitter's growth

potential? >> you know what? twitter has to make an acquisition, too, and make it so you don't come on to attack me. got to be other reasons to be on twitter. of course being facetious. twitter needs more people on twitter the way that they watch tv. in other words, hey, i'm not going to tweet but i want to know. i find, for instance, when i watch twitter, it says, you got to put on right now, put on this wichita state game and drop whoever i'm talking to, see you later, i've got to do this. twitter, a couple people i'm following, they tell you what to watch, what to put on. twitter has to become your service for people who want to follow to break out. this music thing is not encouraging. twitter has been a stock that's been its own bear market. >> back to 50, not too far from 70 a while ago. finally, after last week and all of the yellen madness -- i was off but you were working hard, you were on the road -- the dax,

nikkei, russia, brazil, have taken a spill. >> yes. >> some people might be wondering how long until the u.s. has to follow suit, or do we have to follow suit? >> you mentioned at top china, pmi was bad. stocks doing well thursday and friday were considered to be china plays. that seemed to be misdirected to me. i think that -- got to focus on europe. i saw france pmi, i said, france was a big gap. i don't think you can keep these separate for too long, unless we get tremendous u.s. data. we had strong u.s. data but not so strong we should forget about europe. what happens, one day we come in, europe's down big, we say why didn't we heed that? i'm more cautious about europe, the froth and ipos. i'm cautious that the idea where people are buying stocks related to china. china's not doing better. i think there's another decline in growth in china. >> it doesn't sound to me like you think 1900 is in the offing? >> no. i'm concerned. i'd love to see banks go up.

we have c-car, the regulatory authority which is able to return -- banks can return capital. and low multiple tech did great. while you're away you saw microsoft go higher, hewlett-packard. why are they going up they're cheaper than sales force. give me something else. no, i don't see any signs those companies are doing so well. oracle did not deliver a great quarter. barely got hit. it's regarded as cheap tech people say, why did i like cheap tech? buyers remorse in that group. >> keep in mind as we're on the cusp of earnings season. >> last week. thank heavens march madness ends as earnings seasons hard to look at baylor and focus on lululemon. make your choice. >> we'll talk about the 16. when we come back, rebounding economy is encouraging people to invest in themselves once again.

who is saying this? what's the uncommon indicator he's talking about? stick around for that answer. the co-ceos of warby parker are back. setting its sights on bigger growth. one more look at futures. moderate upside after the intraday reversal friday. more "squawk on the street" in a moment.

we want to update you on the search for flight 370. chinese search planes spotted several objects in the indian oh than could be debris from the missing plane. ian williams live in perth, australia, with latest. good morning. >> reporter: good morning, carl. we had two potentially significant sightings of objects in the ocean today. but as of tonight, neither have been confirmed as being related to flight 370. now, the first was spotted by a chinese plane, which was flying at 33,000 feet, was on its way back from perth, having joined the search today. they reported seeing two large square or rectangular, white objects below the surface as well as a field, an array, of

smaller white objects covering several square miles. now, an american military p-8 aircraft tasked with going to check that out but when they got to the coordinates they couldn't see anything. the photographs that were taken by the chinese are now being analyzed and we're waiting for more details. later today, an australian aircraft also spotted objects in the ocean. described as a circular piece of debris, green, gray in color, as well as orange rectangle. now, these have also produced a further search with an australian ship heading to those coordinates to try to check out precisely what that was. now, certainly a lot of hope raised today by both of these sightings but still nothing definitive. although, we may learn more in under an hour when the prime minister of malaysia has scheduled a press conference.

not clear what he's going to say, but it's unlikely he would do that at this time of night unless it's significant. >> thanks for that, as interest in that story continues. >> yes. this is -- look, obviously, you don't want to equate something horrible with march madness. if you want to get people go, give them your theory. >> what makes this more complicated, they lose thousands of containers that fall off cargo ships every year. >> i know. >> we'll see what happens in an hour. >> i was on a plane coming back from seattle. pilots come back and offer thesises everybody may have suffocated, there's an air problem, terrorism. the longer this goes on, i find it amazing, everybody has a theory. >> coverage, in all of the papers, sayser thi eersays, thi york idea. >> remarkably sad story it doesn't end. >> cramer's mad dash, the open

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highly soluble, easily absorbed. ♪ we begin to rock steady steady rockin' all night long♪ >> just about 8:30 before the opening bell on a monday. let's get cramer's mad dash. looking for keys to the market. you've got one. >> yes. stratus, 3-d printers part 0 the sell-off. this morning, an upgrade. those is jpmorgan, hold to buy. this has to hold because 3-d systems, x1 annihilated here. if this can hold, you'll see

a -- maybe more money flowing back to speculative area that has been a source of tremendous pain. >> interesting. new skin, you're watching, too. >> after this fine, people thinking that nu skin one of the mid level marketing -- everyone just says, listen, it's just a company, don't ever label -- but only $500,000 plus fine. people felt that china was going to kick them out. you're going to see herbalife trade up for this and because carl icahn is putting his people up three board seats. next thing ackman, trying to destroy herbalife. i'm sure he's going to say people going on new skin's board from icahn -- >> herbalife's board. >> herbalife's board. because nu skin didn't get kicked out, i think ackman would sacrifice everything to destroy herbalife, including intimidating people from doing

anything with herbalife. icahn was willing to press this, given the fact that ackman is just trying to get this company to be bankrupt. take it to zero. his hatred of herbalife and the ability to do it and people love what -- i see more people loving his decision to end herbalife. i find it amaze, it's a hedge fund decision to end a company's life. you know? i think that's what he want to do, whether right or wrong. >> sure. what strikes me, we had one-year anniversary of the showdown on wapner's show. how long can this go on? >> until ackman takes the stock to zero. he's got people protesting. he got the government authority to look at it. >> sure. >> ackman won't stop until it goes to zero. the people of herbalife, the board, it's irrelevant because ackman won't stop. it's a hedge fund manager who wants his partners to profit. he's going to give this all of his gain but remember performance dictates. watch it.

he'll never finish until herbalife's out of business. a lot of people work for herbalife. but this hedge fund manager decided to target this xp. i wonder if all hedge funds will start targeting companies and coming up with dirt on them. it's a new thing for hedge fund companies to destroy. the company doesn't care. it's not arthur andersen. so that's ackman's job. he's going to say it's going to implode himself. he wants it by the end of the year and it seems like a helpless animal. a caged, helps animal. >> almost his moby dick. >> some people think it is. i visited starbucks last week. i think people have to understand, a hedge fund manager has decided to destroy a company and don't get in his way. he won't stop. just call me -- there you go. read the book. >> the opening bell a few moment as way. "squawk on the street," back in a minute. [ male announcer ] the founder of mercedes-benz

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on the street." opening bell set to ring here. interesting name, tiffany. earlier in month, jim, citi took it to a buy and others following suit. >> goldman goes from conviction to buy. i wanted to buy tiffany more. then i said, maybe the gross margins -- tiffany is a place to hide of the high -- you know, people are worried about coors. herb greenberg, contributor and reality check on the street saying be careful coors. a lot of people angry i reiterate that. he feel there's are things going on that makes it you want to be in tiffany. accessories business has been great, coors, fossil, tiffany. i think tiffany is a buy on the weakness. this is a market that does not take any downgrade likely. a downgrade makes people really scared. >> citi's point was that tiffany's trying to turn

themselves into a place where not just the boyfriends go on special occasions but where someone can treat themselves to some silver just on the fly. >> i thought that was a great call. tiffany's been too gift oriented. by the way, whenever you buy anybody a tiffany, think love it. i buy tiffany piggy banks, every time one of my friends has a kid. never had anything like thank you so much. i'm reluctant to leave tiffany. tiffany is fine. >> a bunch of names watching well point. >> incredible. one of the things that you missed, the hmos kept going up and up. what happens is, as soon as they go up, everybody follows. stifel, susquehanna raised price targets. people were bullish but not bullish enough and the stock goes higher and higher. >> insurers, man, unbelievable. >> oh, my! humana. i thought they were supposed to be the losers under affordable

care act. >> the enrollment period ends a week from today. >> right. >> the president and the first lady out of the country. but they'll have their eye on those numbers. >> you bet they are. i would be careful. up huge. momentum is there, carl. >> a look at the bell on this monday morning and s&p at the top of your screen. down here at the big board, crescent point energy, celebrating its recent ipo. as the nasdaq, a molecular diagnostic company, recognizing world tv day. interesting piece in the journal about tuberculosis and numbers under reported. >> comeback in tb frightening. i had a friend who had tb, you don't recover from it. >> the spill in houston continues to be troublesome. collision with a boat in the chan that runs from galveston bay to the gulf of mexico. unclear how many gallons might have leaked. today is 259th anniversary of the "exxon valdez," an

unfortunate echo of that. >> you move oil by ship, people get worried. you move oil by train, they get worried. move oil been pipeline, barge, this is what happens. it's a fossil fuel difficult to take from one place to another. always the -- i say subrose of text, the spills. i've always felt the pipeline is the safest. my prediction, the president will not approve keystone. >> really? >> does not believe in the jobs aspect. believes let that oil stay. of course, the oil will not stay. it will go to china and be refined poorly versus how we refine. a couple of big backers. my old friend from goldman making this an herbalife-like mission. >> yeah. amazing how companies or projects get politicized into a large degree. >> incredible. >> crude back above $100, jim. >> we're focused -- i'm focused

on west texas versus price that you get in permian. a discount west texas to bren brent,count permian to west texas. refiners continue to make money. refiners do not report until first week in may. keep an eye on valero. >> you mentioned yelp, keep an eye on that. jeffreys taking their target from 87 to 100. you know this name well, not just from your life as a stock watcher but inn owner and restaurant owner. >> you look at yelp every morning, you look. wow, that was a good one. i can't believe friday. oh, cramer served me, with a k. yelp is make or break. i was at the inn i co-own over the weekend, tripadvisor controls inns, you get a report for yelp. yelp app is robust. this is yellow page for the world, to be international. a company to watch. meantime what people say is the

chart's bad. the chart. whatever. >> you mentioned raymond james takes united airlines from hold to buy. second biggest gainer on the s&p. >> these company have been remarkable and people don't understand, the amount of -- the earnings that they can have, in the old days when you -- they lost a lot of money. how to they don't get hurt. not a lot of competition. able to raise prices. everybody's had the same experience, the planes are always packed. now they -- people used to say, plane's packed, not making money. now they're making money, no discounters coming in. spirit, does not want to go in against the companies. watch delta, well-run. favorite is american, because of the combination with u.s. air, they go higher. >> gillian, one of the losers. >> people were hoping this would stablize but head leans are bad. they're awful. people don't want to touch the stock. it's a very good stock but

recognize a falling knife. you have to wait until it reverses intraday, stays and closes at a higher price. until it does that, you'll keep getting pressure. >> proctor, ibm, mcdonald's, someone of the laggards are leading the day. >> suddenly it was a 77. last half hour of trading was horrendous on friday. people were just i think all focused on march madness, and i don't blame them, march madness is remarkable focus. proctor, that took your breath away. ibm, people feel ibm is doing work on the cloud. people are saying, look, one of the things -- warren buffett really did love it. he loves the management. ibm has been defensive of late, and i think that they're doing a charm offensive now, saying, listen, we're a cloud, too. everybody wants to be cloud. and the cisco wants to be cloud. the problem is that cloud hurts gross margins.

be careful against -- fighting against ibm. it a lower multiple text that has come back in vogue. >> you keep coming back to that cheap tech. >> look at texas instruments. look at the stocks, filled with cheap texas. applied materials over 20. microsoft not giving it up, though microsoft is just a story about maybe they'll purge the old. these stocks, hewlett-packard is one to watch there. it is silently going up on maybe 3-d printing, maybe not 3-d printing. remarkable moves happening in a vacuum. >> gm's below 35, a lot over the weekend, including reports that justice is looking at how much the company knew about the recall, prior to the bailout. i mean, names, fritz henderson's picture back in "the time." my charitable trust owns it, i don't want to read the people. mary barra, new ceo, this is the biggest headline risk. i think it ultimately dies down. if you own it, every day you

feel pain. a sore that refuses to heal. >> rough story. usa today, mike wolf saying mary barra gets it, putting rivals to shame in terms of her level of can der. >> i thought it was a good column. i like michael wolff very much. michael wolff is ahead of the crowd, thinking where this is going to be two, three weeks from now. i think he's going to be right. in the interim, pain is legion, if you own the stock. >> did you see "divergent"? >> no that's a burger movie, one of the more talented directors out there. i was not surprised to see this. my daughter, you know, texts me, please do not see this without me, i bought her the book for the holidays. this is one that people are saying "hunger games ii," wait to see. mr. burger's a great director. >> basically chatter a new franchise afoot. >> there is.

divergent, the third book is not as strong. hunger games got better and better. butting looking i think people are hungry for this cat kniss number two, james dean, rebel without a cause. >> cisco not moving in reaction to that story about getting into the cloud. >> yeah. cisco's regarded as problematic entity. it's not cheap enough to get adherence, part of the cheap tech thing. it doesn't have growth that people want. it seems mired. they need to -- i'm not sure what cisco needs to do to ignite again. a lot of the teleco companies doing well because of the big g-4, chinese orders and i'm not getting that cisco's in that mix. >> ross stores reacting to this research here. rbc, hold to guy. >> ross stores has been -- that has been in its funk.

the funk has ended. when i spoke with nordstroms last week, they have this thing called rack, and rack is within nordstrom's a very good discounter called rack and it can be more powerful story than ross. nordstrom's has a brick and mortar store weighing on it. i woulding long nordstrom's and not care about ross stores. >> we are in the final, full week of the month, of the quarter. we have not put together three consecutive updays for the month of march. s&p up 7 points for the month. >> checking how hedge funds are doing, hedge funds are lagging. why? because they were playing high multiple growth stocks and there's been this reversion to buying the stocks that are cheap. and that's not where the hedge funds are, they're too boring. look at general mills, pinnacle foods, 52-week high. that's duncan heinz and bird's eye on rumors they might buy

ragu. general mills missed the quarter. now it's above. there's a belief if you buy them cheap, you will make money. the hedge fund don't like to do that. they like to buy expensive and hope they go higher from there. >> sounds like the second derivative of a market getting heavy. >> bingo. i'm not going to disagree. i wish that -- i certainly wish that we see the end of this high -- this ipo boom, because that's scaring people. i want everybody to make money. you need to see money revert to the gill lead. >> bob pisani. >> good start. off of the highs right now but following in on the gains that we had over in asia, a great night in asia, put up the boards, china had their march flash pmi number come out and it was weak. these numbers are not great in china. if they don't get better we

won't have first quarter gdp at 7%. everybody's looking at 6%, in high 6s. talk, why is it up? talk they're going to do a stimulus program, even as talking alwausterityausterity, up. best day in four months, up 2%. nikkei up 1.7. the best day in a month. talk of stimulus is moving things. the u.s., call them the risk, tech, financials, industrials doing better. tec techs doing great. micron's up. apple up almost 1%, right at the open. hard to see it from here. you can see the big tech names to the up side. gainers, nu skin. only $540,000 fine is good us in here. up 18%. herbalife up on the three more icahn reps on the board nominated. st. jude medical, approved for new pacemakers. net ap, downgrade, they are

having a tough year. must be down 11%, 12%, for the year. let talk about the ipos. jim, it not the end, it just the beginning of what's happening for ipos. we'll see an avalanche in the next two months. 's obsessed with king digital. i want to point out the extraordinarily small float that's being pursued by all companies. we're talking about, they're going to float 500 million with a market cap of 7 billion, 7.2 billion. float 7% of the company. wonder why it might do well? 7% float. cbs outdoor the largest out there. what it says, cbs' billboard business, structured as a reit. floating a small amount. bigger than king digital. maybe 15%. trinet's interesting. outsource human resource functions, around a long time in 1988, 1.6 billion of revenues, well-established company. software service red hot. nord anglia, one of the largest

owners of private schools in the world, based in hong kong, an interesting one. not related to technology. you want debate whether we're in a bubble or not, the sfrm fact, ipos get out when the tech -- the stock market is doing well. that's the single, biggest determine ant. as long as the stock market is holding up, ipos have windows where they come out. when the stock market fall as part, all of the companies postpone offerings. they're coming now, as the stock market is doing well. two hot areas, pharma/biotech has been hot. that may be playing out. companies need to replenish their pipeline. they have big companies behind the small biotech companies. tech is replacing them. we see what's going on with software as a service. you might want to -- them to slow down, jim, probably would help the ipo market. but there are literally hundreds of potential companies out there, and particularly even chinese companies. remember, jim, they shut down

the chinese ipo market a couple of years ago, chinese regulators looking at them. they're trying to open it up, open it up here as well. there's an enormous pipeline, and most will depend whether the stock market holds up from here. carl, back to you. >> great report. remember, look workday, salesforce.com. pioneer software as a service and being annihilated as people sell winners to buy the stocks that bob's talking about. not a good sign. i'm getting a lot of heat, jim, why are you dumping on ipo? i lived in 2000, and i wanted -- i always said, if it ever happens again and i was in a position where i would have a show, i would talk about it. no one wants to talk about it. people didn't want plea to talk about it then. i'm talking about it now. i'm sorry to those trying to cash in, i don't mean to hurt you, six monthed from now, a lot will have the sliver deals will have stock supply.

i feel it's my job. hate me all you want, it doesn't matter. my kids like me. >> on that note, check in on some of the action in commodities. jackie deangelis at the nymex. >> good morning. jim, i like you, too. let talk about what's happening in the oil pits here. seeing west texas intermediate trade over $100 a barrel. a couple of factors, the g-7 talking about russia and ukraine as fears over military escalation escalate in the market. we are looking at those factors closely. also the barge accident in the houston ship channel, that channel closed while cleanup efforts in place. talking about 168,000 gallons of oil. it's a wildlife preserve, so they are taking this very, very seriously. the coast guard saying that as the cleanup efforts continue, we could see closures continue into the weekend, even potentially. want to talk about nat gas futures consolidating over two-month low last week. traders are saying don't get

comfortable with the trade, could be more volatility because two or three more weeks of heating demand are still out there. i want to talk about the gold trade, because it's losing ground again. down almost 18 told. gold having a rough run. traders are saying no conviction to buy gold now, even with some of the weak data out of china. >> thanks so much. demand for made in america luxury vehicles surging. we'll profile one overseas automaker, that's jumping on the bandwagon. also ahead, warby parker considers it itself an alternative to overpriced and bland eyewear. retailers staking out new turf. the co-ceos joining us later on this morning. peace of mind is important when you're running a successful business.

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brackets left in the warren buffett's $1 million challenge. the odds of achieving perfection 9.2 quinn till onto one. the top 20 scorers each receive $100,000. judging from the sound of your bracket, if you entered you might be one. >> i didn't. i'm number 3 in the 13,000 pool of celebrity analysts, you call them, on espn. i want to thank my stage director for "mad money," florida, virginia, baylor, louisville. i'm number three. it's insane, but i feel good. >> a lot of people talking about kentucky, which may be the one of the best games of the year. >> disruptive factor that was one of the great games. you know, look, games, virginia, baylor, baylor, by the way, final four, i think that they really are good. but that game, connecticut game, i mean, nova game. these games, they change your weekend and everyone's focused on them.

but, yes, that ending for -- oh, man. >> very rough. "times" had a piece about free throws. why so difficult and what a game-changer they can obviously be. if you -- i don't know if you've worked out the process to where your percentage is higher than it otherwise would be. >> yes. i mean, it's one of the reasons why it's 1 in 17 billion that you can win. i find that when you look at some of these games, like wichita, they did come to play but didn't matter. the harvard, stanford, wow. harvard shouldn't have gotten as far as they did, then they're annihilated. the president was doing well. the fourth in the celebrity tournament. and you know you looked at him. i think the president's going to stumble. he's got a couple of teams starting to disappear. those who picked duke to go all the way, they look like they're good in the standings but to get -- the table has run on them. espn, take a look at celebrity bracket. thank you. >> we'll keep our eye on you.

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getting breaking news regarding malaysia airlines 37

on eunice yoon joins us. >> reporter: i'm at hotel where the families have gathered of the passengers of mh-370. currently the families, nearly all, received a text message from malaysia airlines which says, we deeply regret that we have to assume beyond any reasonable doubt that mh-370 has been lost and that none of those on board have survived. as you will hear in the next hour, from malaysia's prime minister, we must accept all evidence that suggests the plane went down in the southern indian ocean. we know that in the next ten minutes or so, the malaysian prime minister is going to be holding a press conference in kuala lumpur. the react by the families to the text message, nobody wants to believe it. they're in a state of disbelief. right now they are crowded inside of a conference room, all of the journalists being kept away. we're going to have to see what their reaction is and probably

hear their reaction once the malaysian prime minister does speak in kuala lumpur. >> it does raise some questions. they must have enough information to make them say, we must assume it's lost. >> geez, one of those powerful stories where you can imagine someone -- it's almost like world trade center for a smaller degree. >> the pressure from families in your own country, must be more incontinues than we can imagine here. we'll hear what the prime minister speaks. >> we cover a lot of the malaysian press conferences on international cnbc. people feel it's the obfuscation. everybody feels lost. >> "mad money" tonight. >> there's a conference every year, people are focused on smaller oil companies. we have nog, which has done quite forly and lee boothby from newfield, newfield has done well

of late. i just think that we have to keep the story about the energy renaissance in front of us, and this is an attempt to do so. >> you've seen it firsthand over and over. >> at the oil well, energy 21, a major comeback. people didn't believe they made a big acquisition while we were down there. that stock's very cheap. >> let's get to simon hobbs, see what's coming up at 10:00. >> good morning to you. welcome back. senator mark warner, he's attempting to prevent cyberattacks from the ukraine into this country. looking importantly at whether markets are now underpricing geopolitical risk. are we reaching a tipping point? that on hour two of "squawk on the street." for hearburn? yea. try alka seltzer fruit chews. they work fast on heart burn and taste awesome. these are good. told ya! i'm feeling better already. alka-seltzer fruit chews. enjoy the relief!

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far from any possible landing sites. it is therefore, with deep sadness, and regret, that i must inform you that according to this new data, mh-370 ended in the southern indian ocean. we will be holding a press conference tomorrow with further details. in the momeantime we wanted to you of this new development at the earliest opportunity.

we share this information out of a commitment to openness, and respect for the families. two principles which have guided this investigation. malaysia airlines have already spoken to the families of the passengers and crew to inform them of this development. for them, the past few weeks have been heartbreaking. i know this news must be harder still. i urge the media to respect their privacy and allow them the space they need at this very difficult time.

thank you. >> that is the malaysian prime minister, three weeks into the search for flight 370 apparently saying that the flight has indeed according to all of their data and assumptions crashed into southern indian ocean, essentially putting a lid on theorys that suggested the flight and the plane might still be out there somewhere. for more on that let's get to chief international correspondent, michelle caruso-cabrera, tracking the hunt for the plane since the beginning. what do we make of this in. >> they've eliminated one theory but we don't know what happened to the plane at this point, right? now the next step, somehow they are convinced that they know where it it went down somewhere and maybe it's because of the satellite image and what he said data provided by the english company. what actually happened to the plane? i think they're also going to face criticisms in the way that they've delivered the information via text message in

china, is a pretty tough way to get the information. so i think we'll see more of the criticism that we've seen throughout this process, carl. >> and, that commitment to openness does sort of bring to mind some of the early criticism that got, michelle, when the hunt was in its early stages. >> clearly, he did a news conference right away, had actually very little information to say, except that we are now convinced it went down in the southern indian ocean and we'll have more information tomorrow. clearly trying to counterer criticismses and allege and get out as soon as possible. >> all right. look for more on this. phil lebeau joins us on the news line. there are going to be ramifications for the likes of boeing because of this. >> it depends. theoretically, yes. we still don't know what caused this plane to go down. and it it may be months, maybe years, before they find the flight data recorder, which will give the most definitive information.

obviously, if they find pieces of the plane theoretically they can do reconstruction that will assist in understanding why the plane went down. until we have that data, there is no way of knowing what repercussions are for boeing, seriously, because we don't know if this is some catastrophic failure, a component within the plane, too many wild cards out there. >> it doesn't do anything to obviously narrow the search for the box or the debris, phil. interesting, it's been talked about today, tom costello on nbc talking about the loss of containers, off of container ships every year, thousands of them, that might suggest even the latest round of debris that they've seem to have found could be something else. >> i've heard a number of reports of different analysts who have studied that part of the southern indian ocean where they refer to it as almost the trash dump of the indian ocean. and not by -- on purpose but over time because 0 of the rough

water, seas, conditions, things are lost on container ships, other cargo ships and as a result that makes the search more complicated. keep in mind, we've talked about this from the beginning, the biggest issue you were looking for debris that may be hundreds of miles from where the flight data recorder is. so, even though they find the debris, going back and searching where the currents took it et cetera, it's going to take a long time to find that flight data recorder. >> if it takes too long, is there -- i'm thinking back to air france -- is there a life span on the black box itself to where it will no longer send out pings? >> about 30 to 35 days is the expectation. after that, you're probably not going to get -- you might get a few more days, maybe a week or two. but generally speaking, the expectation is 30 to 35 days it will be sending out that pulsing and the pings that could be picked up by ships, by sonar radar under water.

after that, not much. >> you know -- >> michelle, that does mean they are racing against the clock, to some degree. >> for sure. and it's happened over and over again with this situation, carl, is we think we're getting somewhere, we've got some kind of definitive piece of news, whether it's, oh, we now have the computers from the pilots, et cetera, and just when you think you're getting somewhere, we heard this announcement from the prime minister, he's going to be speaking late at night, must be something new and concrete and the fact of the matter is, it feels like where we started. still, as phil pointed out, we don't know what happened to this plane. >> yeah. i mean the most you can say at this point, it may be has curtailed the more outlandish theories circulating regarding the plane. we still have no idea where this plane may be. >> i also think, correct me if i'm wrong here, michelle, the malaysian prime minister needs to contain in some form emotion that is still very raw at home and, clearly, politically, seeking to draw some sort of end

to the waiting for those people. that is also -- >> yes. >> a political aspect to this. >> i'm not sure this is going to solve that issue by saying out loud you have to assume that they've been lost. he's also facing intense criticism in china as well. remember, there was a meeting with the malaysian airlines folks with the families of the victims and they were throwing things at representatives from the airlines because they were so upset about not having more information. >> michelle, thank you for that. our thanks to phil lebeau as well. once again, malaysian prime minister saying we must conclude the plane itself has been lost at sea in the southern indian ocean. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪

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harles schwab.inkorswim the malaysian prime minister just had a press conference in which he said their latest data shows the plane did, in fact, plunge into southern indiana oceanen united natioo eunice yoon. >> reporter: can you hear them? i'm at the hotel with the families. it's completely chaotic here. the security had tried to manage it, but the families are just bursting into tears. hold on, listen to this. >> it does sound like ain't credibly difficult scene. did they hear the prime minister as we did in real-time. >> reporter: everybody is -- everybody -- hello? the women is shouting out how

she's been desperate and very, very upset. hold on. falling down to the floor, they're crying, she's now sobbing on the floor. the security have been trying to keep -- to keep us away. the people here, completely devastated by what they heard. when that first message, as i told you before, the general feeling -- people were holding on to hope they wouldn't hear this news from the malaysian prime minister. but now that the information is out, and they're getting confirmation about their families, it's completely overwhelming. >> it sounds like an emotional scene. where exactly are you? everybody's gathered in one place? >> reporter: everyone's gathered at a hotel, which malaysia

airlines had brought the families, originally, because they've been here for two weeks or so. actually since march 8th, hoping to get some news from the families. a tense and stressful time, emotional roller coaster ride, as they've always cling on to hope that maybe they would be able to see their families again. there was a high -- when the news came out about a possible -- the plane was diverted, many people here hoped that it might have been a hijacking, because they were trying to believe that perhaps their family members would be found alive. now that they're getting this definite statement from the authorities, they're just completely devastated by what they're hearing. >> did malaysia airlines enter the room to break this news to them, or did they just send them a text? >> reporter: no, they sent a text originally, and now they

were -- the families were told to come into the hotel, into this room, for an emergency meeting. so they went in there. originally we weren't allowed to go inside. we weren't, you know, we don't know exactly who is inside, although i did see some workers, emergency workers, going in, the families have been gathering and presumably there are official there's who are alerting them to this -- to this news. >> thank you for that. regarding flight 370. our apologies to the families. no intention of ours to broadcast their pain, which is quite real on that news.

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45 minutes in to trade here at new york stock exchange, the dow, s&p, and nasdaq holding on to gains. they have tipped into the negative. lingering geopolitical concerns around the world, concerned about china's economy. are the markets underpricing the risk? let's bring in david katz.

also joining us, art hogan, chief market strategist. and, art, to you, over the weekend, all of the research notes and the publishing was about how the narrative changed after janet yellen, whether she wanted to or not, changed the conversation and trade in the markets, do you agree? >> it's interesting. we'll find out, you know, whether that was a slip of the tongue or a well-orchestrated mettage that considerable period of time is six months. i think what we're going to find with the parade of fed speakers, they're going to have ability to put context around that and we'll know exactly what that means in terms of ongoing monetary policy. i think we made too much of that news, markets overreacted, albeit for a short period of time. that will play it out this week, especially since every day brings us one, if not two fed speakers, to explain where the fed stands on monetary policy. if in the back of our minds anybody thinking that interest rates are going down and not up, if it's going to start happening in 2015, and continue for a

consider period of time, they're probably not looking at this correctly. the sooner they start, you know, raising interest rates, the more normalized things get and the better the read is on the economy. i think if they're raising interest rates for the right reason, that's not bad news, it's good news for markets. >> interesting point. market psychology around the federal reserve. obviously an obsession with what the time frame is here for the fed and the low interest rates. is it a good thing if we have to think of interest rates coming up sooner and, therefore, the economy is doing better? or is this still a qe addicted zero interest rate policy market where it's going to be negative? >> psychologically, the market now is addicted to it. but we think that the market ultimately will come to terms with interest rates increasing, surely from the very low levels to a two or 3% level. after that, it would be problematic. we don't expect that for years. last year the market became obsessed with the tapering.

it sold off sharply, then recovered nicely. we think the same thing's going to happen now. the market will get concerned when the fed will start increasing interest rates, set until, psychologically, and the market will react to fundamentals again. later in the year, as that interest rate increase gets closer, the market's going to have another round of sell. you'll have volatility but with an upside bias. >> a lot of comment, as we reach the end of the quarter, geopolitical tensions and resilient, confidence that you see in the market so far. do you, falling to the bym mellencamp, look, some point you were resilient after so much, or would you be more with el-arien, talking about tensions building and a tipping point and suddenly the markets reacting to them. >> we think the market is going to muddle through this, historically, the market can get over a lot of geopolitical tensions. for the last few years, they

have derailed the market. we think we're getting back to more normal times. the economy, corporate earnings will drive stock prices and short of anything disastrous happening overseas, the tone is set to get through geopolitical tensions. >> what do you make of the speculative excess in the ipo market, froth and biotech names that we've seen and the technology names that we've seen? tesla up 553% over the last year? >> that definitely is a concern. we'd be weary of biotech companies and new media technology companies that are selling at these excessive valuations. beyond that, though, we think the market overall is selling at a reasonable valuation. interestingly, a lot of technology companies selling at 11, 12 times earnings but the old technology, boring companies. but we think it's a better place to make money in the next 12 months. stay away from overvalued areaed. >> david, what is going to be your leader here? is it the ten-year yield, which is in the 275-ish range which

doesn't signal a fear of higher interest rates anytime soon. >> we think the fed comments rather than the bond market that will drive people's perceptions of where interest rates are going and where the fed is going. >> thanks for joining us on this monday morning. good to see you both. major techs shipping channels that deliver crude, oil shut for a third day as cleanup from a spill spletthreatens to for a week. >> good morning. watching oil prices closely on this because traders are concerned about it. west texas intermediate hovering around $100 a barrel mark. this is lending support to that. the channel is currently closed and the coast guard is saying as efforts to clean up the oil spill progress it could be closed into the weekend as well. i want to highlight the barge operated by kirby inland marine.

we're watching the stock, trading down 2.5%. last time that i checked. this is a stock that's run up 35% in a year or so, as investors flocking to these alternative shippers, the rail transport companies, the barge transports, as well. as we wait for more news on pipe lines and specifically the keystone pipeline. remember, this ship channel as well, houston ship channel, near an environmentally sensitive area. this could mean that there could be a criminal probe in this situation. there could be severe penalties as well. and i do want to highlight it comes on the 25th anniversary, today is, the 25th anniversary of the exxon oil valdes spill. it highlights the issue of how f far we've come or not come. the houston ship channel is one of the busiest petroship channel line. >> interesting to note the timing of that.

want to draw your attention to a story breaking over the weekend, some drama with coca-cola and one of its shareholders, david winter, longtime value investor, found of winter-green investors. the coca-cola, in response to criticism from mr. winters about the 2014 equity plan set to be voted on on april 23rd on compensation, coca-cola saying that mr. winter's letters are informed and do not reflect the facts. now, just to recap, mr. winters wrote a letter to warren buffett, the biggest shareholder of coca-cola, to his fellow shareholders of coca-cola and the board of directors, calling ow the 2014 equity plan for excessive compensation, which shareholders will be voting on, and the fact that it will dilute some of the shareholder values. if approved, he says, this plan, in conjunction with previous equity compensation plans will dilute existing shareholders by a company estimated 14.2%. at the current share price, $13

billion. and he says, the board is asking shareholders for approval to transfer that $13 billion, approximately from all of our pockets to the company's management over the next four years. coke says it is completely false and, in fact, this proposed 2014 equity plan doesn't change. this is how coke's been doing it for years and years, it doesn't change the longterm equity compensation practices, not limited to senior executives contrary to what mr. winter says, extends to a large group of employees, it's important for incentive and retention, it jives with how shares are performing. 6400 people were eligible for this reward in 2013. and further, the amount of longterm equity compensation awards granted each year within industry norms. coke makes a point share of purchases last year totalled $5 billion. 4.5 billion in 2012. of these, 1.3 and 1.4 billion respectively given to the

employees and, of course, this is all going to come to a head on april 23rd, warren buffett has not responded yet. he's the biggest shareholder of coca-cola. but it's a question, right? of course, compensation is in focus with annual meetings coming through. the question, whether shareholders support him because as coke says, there's nothing out of the ordinary here in terms of long-term compensation and the ceo of coca-cola got a 30% decrease in his total pay package last year because of the underperformance of coca-cola. it's going to be a continued battle. i reached out to david winters in response to the coke response today and he said he stands by his story and it's a ul in the proxy statement. >> $13 billion is not insignificant on a company with market cap of 168. if that figures correct, that's actually quite high. that's significant. >> that figure is a hypothetical figure, and it turns out could be a lot less. they were putting that out in the proxy. it also is not just for

management. keep in mind this is for thousands. >> i get it but still -- >> they have a strong share repurchase program. >> it's almost 10% of the market cap. if that figure was correct, over four years, that might be alarming for some. >> yeah. we'll have to see how the shares perform and whether other shareholder as degree because, as i mentioned, share repurchase program rewards shareholders first and a chunk then goes to employees. certainly, you know, he has raised this issue and we'll see if any of the shareholders agree with him. watch coca-cola, could be interesting. straight ahead on the "squawk on the street," after a big week in ipos last week, another ten expected to price this week. is the candy crush parent not the one you should be paying attention to? we'll help you navigate all of the ipos. small caps racking up big gains in the last few months. why it could be a warning sign for big investors. at delta we're investing billions of dollars, improving everything from booking to baggage claim.

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another busy week of ipos on tap, starring king digital, make of the candy crush mobile game seeking evaluation of $8 billion. which ipos should you have on your radar? eric jackson, founder and managing member of iron flight capital as well as a columnist. grubhub next week. building up to the big one, alley ba ba over the next couple of weeks as well. are you buying at the moment? what catches your eye?

>> well, i think there are a lot of interesting ipos coming out. i think ali ba ba would be tops on the list. the a special company and got unique characteristics with the huge growth in china. king is a solid company. but, in general, i think ipos -- we've seen this over the last few years -- have not been uniformly strong perform arizona out of the gate and i think most investors have been better served sitting back and waiting aapproximately six months post-ipo when they get into the stock, when valuations settle down. >> twitter might be the exception, because it rose strongly in the second month, up to $72 i think it was, and it's fallen back. when the dust is settled, what would you be buying? what about cast light, absolutely rocketed at the ipo? >> well, i think -- again, a lot of the names that have come out

have been in popular genres like cloud and so forth. for me, touching these kinds of very hot ipos are usually not the most attractive plays. i tell you one stock that i'm interested in right now, it's not yet quite six months post-ipo but i have a long position, a company called cheg which came out in november, stumbled out of the gates. approximately half off of where it ipo'd at. it's an online education portal. most people are bearish on it because they think that they only sell print textbooks and prevailing to see the growing online digital business. and that's what i'm most excited about. one thing people forget, companies like yelp and pandora and were ho-hum ipos and forgot. pandora languished, it got down to $8. it wasn't until they started

posting great numbers in quarters after the ipo we saw huge returns, five to seven times their low point. that's a better return than you could have received from facebook at its lowest level. >> the number of ipos filed this year versus this time last year, basically two, three times the number of filings. are you suspicious of that fact? and does it say something to you about the broader market? >> i don't think so. i don't that there's cause for alarm, an impending bubble bursting. i think it's a sign of a healthy market where five years into a bull run it would be crazy if some of the private companies that have, you know, gone through those long, kind of valley of death moments didn't want to see liquidity for their investors. i think, you know, if we go back to the dotcom era, things got crazy in 1999, then we started to see companies that had quickly been formed, thrown together, little revenues going

ipo, and we just do not have those same kinds of companies yet. i think we're still several years off from that, if we do see something like that. right now the ipo market, i see, is i have healthy. >> what's interesting also is there are a number of foreign companies to choosing to ipo here. you mentioned alibaba, there are others what happen does it say about the u.s. as a destination. a sign that a regulation is easier? should we be concerned about that? >> i think the u.s. is always taken a kind of pro-management approach to kind of trusting management, trusting the governance of management. and i guess you could say that's a good thing or a bad thing. obviously, some companies, and alibaba is among them, and facebook would agree, and google would agree, that they do know better and they do feel more comfortable with that governance in their hands rather than a bunch of outsiders on their board dictating what they should be doing. i do think it's not cause for

alarm. and you know, the u.s. will continue to be a destination for a lot of these companies. >> is it easier to hype an ipo in the united states, eric? >> well i think we're talking about the big of the market in the world. so, i think if you had that stage, i think if alibaba was to only have listed in hong kong, there's less of a story there. tip cent is one of the fiercest rivals in china. it's only listed in hong kong, we never talk about it here. would it have a higher valuation if cross-listed? i think so. i think there is that marketing buzz that gets created here. >> eric, have a good week. thank you for kicking off with us. eric jackson. >> from strong ipos to another strong space, perhaps too much of good news, outperformance of one index scaring some investors. seema mody looking at warning signs in small cap stocks what happen do you mean? >> there's one chart starting to

concern market experts and that's the russell 2000, up 26% over the past year, up 1.5% just this year, outpacing gains on the s&p 500 and the dow. strategist at barclay says his concern with the russell, valuation. too many small cap names with big price tags. up triple digits this year, a majority of the small cap names make most money here at moment home and have priced in u.s. economic recovery, leaving no more room to run. russell 2000 stocks include hawaiian holdings, cap stone turbine, all of which have a market cap below $1 billion. it's not just fundamental experts raising a red flag, a market technician says the russell 2000 trading at a level not seen since the dotcom bubble

burst. now if you're not invested in small cap names, should you care about the russell 2000? many would say, yes, like the dow jones transport index, it's seen as a leading indicator for the broader markets. carl? >> thank you. seema mody. the target data breach, one of the biggest cyberattacks in history, could have come from a hacker in ukraine. now, one lawmakers wants more action to protect americans from such attackers. senator mark warner will drive us live to explain why he wants more done to keep your data safe. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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back to information coming out regarding the flight 370 of malaysia airlines. eunice yoon joins us on the news line. >> reporter: good morning. i'm now at the beijing hotel where the families of the passengers aboard mh-370 are now camped out. they have been grieving very

loudly, complete despair over their families being lost and the announcement that the malaysian prime minister had made earlier today. some of them now are getting very angry. and demanding -- demanding that they see the bodies of their family. see the bodies of their family before they believe that this is happening. they are in utter shock, some of them have been taken out of the room by emergency medical workers who have been rushing into the conference room where many of them are still speaking with officials who are now in that room, who are now in that room while the rest of us are waiting outside. >> okay. eunice, thank you for that. eunice yoon from kuala lumpur.

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as the u.s. senate considers a ukrainian aid package, two senators planning to introduce a bipartisan amendment that would

create a law enforcement partnership between the wu.s. ad ukraine to improve cybersecurity. senator mark warner an amendment response somewhere joins us from capitol hill. good to see you again. good morning. >> good morning. >> that target breach on the minds of a lot of consumers. you led the congressional hearinged into that not long ago. what do we know about ukraine and the extent which it's a hotbed for hackers? >> the previous regime basically turned a blind eye to hackers, that are hacking into not only retail establishments the way they did with the disruption around target but also the sort of a lot of attacks against governmental entities as well. so this is kind of a common sense, i would say, no-brainer amendment. we're saying, yes, we need to support the new regime in ukraine, decouple them from russia, but if we're providing aid, ukraine needs to partner with us in law enforcement to make sure that we can bring these criminals to justice.

>> look at bilateral talks, right, working group, extradition procedures. i mean, their whole government, senator, on shaky ground right here. do they have the wherewithal to attack this with any kind of resources whatsoever? >> listen, we want the new regime in ukraine to succeed and i think you're going to see the united states and eu step up for them. but if they're going to be a responsible government they need to work with us, and i'm sure the european allies feel the same, and try to limit the number of cyberattacks coming out of their country. so, yes, i think they have the ability for law enforcement to work together, for us to work together on an extradition treaty. in my mind, getting rid of the criminal element in ukraine is to the benefit long term of the ukrainian stability. >> senator, i can understand why you want to plug into security forces in ukraine at highest level, but as far as preventing cybercrime in this country, don't we need something way more

comprehensive? don't we need a different scale of debate here about major resources that perhaps no longer should be spent on aircraft carriers and planes and troops and actually needs to be reassigned to protect the i.t. infrastructure of this country? >> simon, i'm not sure it's an either/or. we need to both have traditional military presence because i think the world does better with a strong american military. you're right, we need greater emphasis on cybersecurity. if the american public knew how of every day our banks, retail stationment, governmental entities attempted to be hacked they'd be surprised. this needs to be dealt with at a governmental level but also at a private business sector level. needs to be more collaboration amongst business as well. >> what i'm driving at, isn't the scale of this worthy of a bigger debate? actually, it should be on the scale of spending, as you have at the pentagon, we need a

comprehensive shield, do we not, within this country? >> absolutely, simon. you need a regime that will not allow kind of the free rider problem to take place, which we've got now. i'm not saying this was target, but a dozen firms in an industry sector doing right things. but if you've got a weak link, cyberhackers can come in through the weak link and go after the industry. we've got to set standards when a company should be obligated to report to the public and regulators when they hit a volume of cyberattacks. in the banking sector, we have to make sure we don't go back to blame game between the banks and retailers about cyber, but they work together in terms of things like chipping pin and tokenization in credit cards yes, you're right, it needs to be debated beyond the cto level at the ceo level and at the highest levels of government. >> switching back to your amendment which you're proposing

to partnership with ukraine, i wonder what you found about russia as a threat, as a hub of cyberattacks and what's going now specifically given the situation in the crimean peninsula. >> this is in the public realm, we've seen a great number of cyberattacks originating out of china, russia, ukraine, candidly out of other nations as well that are sometimes viewed as our allies, and we need a more concerted effort against these nations. frankly, our ability to kind of have leverage on russia is diminished. that's why the previous week with another republican senator i said, in the united states, that the administration ought to speed up approval of the natural gas exporting licenses because the more we can decouple europe's dependence upon russian gas and oil, the better for american security, the bet for european security. >> finally, senator, has there been any direct correlation or

connection between the target breach and ukraine itself? >> there has been, which has come out in the popular press, that the target breach originated out of the ukraine. let me also say that there was a great deal of other activity originating out of ukraine. i think this is because the previous regime turned a blind eye to criminal activities and some of it may have been state sponsored. we've got a new government in kiev, we want to work with the government, part of the working relationship ought to mean going after the cybercriminals. >> we'll keep our eye on the amendment and the bill. thanks for your time. >> thank you, guys. >> mark warner of virginia. as climate change makes winter colder, we've felt it summer's hotter, storms more dramatic, city planners have to look at the structure of our urban cores which could mean big changes for the tut of our cities. diana olick looking at this interesting angle, climate change and urban planning. >> how we live is indicative of who we are and both are

changing. americans are becoming more urban, more social, and more conscious of the changing climate around them. so as city planners look to the next quarter century they are to factor in all of that, especially the growing threat of wilder weather. >> reporter: on boston's boro's wharf, million dollar condos hang over the harbor. do you see 10, 15 years from now it's going to be that much higher? >> it will be higher. >> expert in climate change, doug foye advise is city governments and planners on energy efficiency and environmental protection. >> urban planners are going to have to deal with that by planning their cities around resiliency, around adaptation, around dealing with the threats and consequences of more intense storms. >> reporter: which means everything from putting storm gates out in the ocean to moving building systems to higher floors. parks will become defensive, like boston's emerald necklace

which serves as green space and a floodplain surrounding the city. then there is heat. >> already in most cities there's a clear differential between the heat in the city and the heat heat outside of the c. there's something called the urban heat island. >> reporter: harriet is the director of sustainable housing and communities at the department of housing and urban development. her mission is to help build a clean energy economy. >> cities are looking for our infrastructure to be a lot smarter and to do double-duty. handle storm water, but also help keep the city cool. generate energy, generate food, imagine those green roofs on the tops of buildings, what if they grew food for restaurants on the ground floor? what if we had green walls that could help produce food and cool buildings? >> reporter: as planners imagine, corporate america is watching because the potential for profit is huge. specifically, what kinds of

companies would profit from the rebuilding of our city sns. >> the buildings in energy efficiency, i.t. systems, this is where people want to be. we're going to have to be smarter about it. and we can be smarter. there's an enormous economic advantage to this as well. >> cities are going to have to be rebuilt over the next 25 years, that means integration of technology and traditional infrastructure so people can use real estate in a more efficient and cleaner way. take transit, toyota, diamler, bmw, they're already exploring service instead of ownership models of their cars. and that brings us to sharing and back to how social change will effect our cities. we're going to tell you all about that coming up on the "fast money" halftime report. >> diana playing the long game today. when we come back, bmw already expanded its plant in south carolina and might have to do it again. we're going to tell you why after the break.

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the market is opened the week in negative territory. what's interesting is the fact that the selloff is greater at the nasdaq. >> good morning, simon. something you don't typically talk about, right, the nasdaq underperforming the market. but that's exactly what's happening here today. nasdaq 100 and overall index down more than 1%. in fact, more than 90% of the nasdaq 100 is in the red right now. the big reason, biotech stocks taking a big hit down nearly 4% at the buyer index here at the nasdaq. the selloff started friday when gilead got a letter from congress. we saw a big selloff then and it is continuing today. a lot of analysts i've been speaking to, a lot of the notes out over the weekend say this, fundamentals for biotech may be strong. this letter probably isn't going to have a huge impact on gilead's day-to-day business, but it's having a very, very big impact when it comes to

sentiment. rbc writes sentiment is waning the most we have seen in the last two to three years. the biotech sector has been huge over the past couple years up over 65% last year. so perhaps some of that froth right now being taken off of the table. a couple other movers to note about is large cap tech here at the nasdaq also having a weak day, facebook, google and microsoft lower. apple is notably hanging onto gains. finally momentum stocks, all the big high fliers we've been talking about, netflix, tesla, priceline, all down today as well. sarah, over to you. >> the air coming out of those names. sheila, thanks very much. the nasdaq, by the way, just going below it's 50-day moving average. bmw already expanded its plant in south carolina. it's about to have to do it again as demand for made in america luxury vehicles absolutely surges. phil lebeau is live at the bmw plant in spartanburg, south carolina, with more on this story. good to see you, phil.

>> hi, sarah. you know, timing is everything in tv. and they're only making a few x4s right now. guess what? one is right here on the assembly line. this is one of the first ones to roll off the assembly line. they're going to kick up full production starting in april, but they've actually started today. when you see how much growth has increased here in spartanburg, south carolina, for bmw, look at these numbers. you'll go back to 2008. they made 160,000 vehicles here in spartanburg, started ramping up production with the growth of the x lineup. they got up to 240,000 in 2012. this year they will build at least 350,000, and many believe it won't be long until they're well over 400,000 in annual production. >> just imagine it's five times as big as it was in 1994 when we started producing cars there. so it has had tremendous growth. and it's our center of competence for x models, x3, x5,

x6s get built there and very soon the new x4. >> the x4 goes on sale mid year here in the u.s. and other markets around the world. bmw will announce final pricing next month but most blooe you'll see a starting price around $40,000. look at shares of bmw year-to-date, up a little more than 4%. carl, bottom line is this and you know this well because you spent time down here for the bmw documentary, they continue to expand because there's so much demand for new models like the x4. this is one of the first ones rolling off the assembly line down here. it won't be long until they really start kicking up production. carl, back to you. >> unbelievable growth down there. phil, don't let them put you to work on the line. phil lebeau at bmw in spartanburg, south carolina. if you're just joining us, here's what you missed earlier on. welcome to "squawk on the street." here's what's happened so far. >> actually had players dropping

out even as it came public. they came public too late. the business was rolling over. this company, candy crush, is hitting this very important gain that is still moving up. you have the ubs note moving up the stock and you have the comcast news. and i would say both are not something you want to hang your hat on because there are many discussions. and every attempt that i have seen to be able to gain what apple's going to report next quarter has failed. >> there's a look at the bell. >> i think the sooner they start, you know, raising interest rates, the more normalized things get. and the better the read is on the economy. >> i don't think that there's cause for alarm of an impending bubble bursting or anything. i think it's just a sign of a healthy market. good morning. 11:00 a.m. on the east coast, 8:00 a.m. out west. here's what we're watching for you this morning, is this the apple tv we've all been waiting

for? the tech giant reportedly in talks with comcast for a new streaming video service. we'll go behind the story, tell you what you need to know. >> plus, cisco, the latest company jumping into the cloud saying it will spend $1 billion to enter that market over the next two years. we'll ask one cloud company if the space is getting a little too crowded. >> and a company known for online retail making a big bet on bricks and mortar. the ceos of warby parker will tell us why. we're monitoring news out of beijing today. malaysian prime minister holding a press conference concluding flight 370 ended in the southern indian ocean. british satellite images show the plane was last seen in the middle of the indian ocean just west of perth, australia. the flight disappeared more than two weeks ago, of course, 239 people on board. we want a check on the markets right now. just about an hour and a half into trading dow, s&p and nasdaq all squarely in the red. soft data overnight showing deceleration in china as well as

a weaker than expected ism manufacturing number. >> let's get to our squawk feed this morning. joining us today at post nine, john steinberg, president, coo and cnbc contributor. jon fortt joins us this morning if we can get him off of his phone. jon, good morning to you too. today's top story, apple's reportedly in talks with comcast about a joint streaming tv service using an apple set top box according to the journal. the deal supposedly in the very early stages and would involve comcast providing special treatment on its cable system to make sure video could in fact stream at very high speeds. we want to note of course comcast is the parent company of nbc universal. you love this story, jon. >> i love the story. it's like the eve of itunes being announced. the future of the record store was written in the stars, they were going to be done. it was a matter of time. we've had so much movement in the past week along. sony, amazon. you've got amazon as well. it's endless and endless all the

stuff that's happening right now. >> is this going to be as transformational as i itunes was? >> if it's going to be is the question. with the iphone you had a few key things in the place, web in your pocket. it was the first time you really got that. you had visual voicemail. particularly with the visual voicemail you needed at&t's cooperation. just so happens a couple years ago i was on apple's campus chatting with a couple people there. they were asking me about my apple tv experience and i was telling them, look, the main issue is throughput. it completely determines your experience. if you have great bandwidth, you can have a great experience. if wi-fi is on the other side of the house, it might be terrible. apple doesn't like having a key factor like that outside of its control. that's what these talks are at least about. >> but determined experience determines as well. this is basically comcast saying we can't make a good set top guide box. we have to go with a great user interface and hardware partner. >> look at comcast shares pretty

steep slide today down 1.25%. they've been spending so much money to build this x1 console. if you're a shareholder of comcast, are you disappointed they've been trying to do that for so long and now maybe going to renege on it? >> i like this. leasing those set top boxes is very expensive. people will go out and pay for an apple tv or whatever they call this as well and people will like comcast more. people came to at&t when they got a great device, more people will switch to comcast. >> why does it not run afoul of net neutrality? >> it's a complicated thing. basically there's a managed channel layer they'll be allowed to have. there's a carve out in that neutrality which comcast is bound too. it will be a court fight. it's very confusing. >> in fact, some of these talks go back to time warner cable, right? >> indeed. i'm just wondering how this changes the politics and who's on what side of the line when it comes to this big comcast/time warner cable question of whether the two get together.

obviously we're kind of in the middle of that. but does this make apple in favor of that kind of a transaction because a partner with a big footprint is good for them? or does it make them a little bit wary because of the amount of power that's on the other side? it's a question we'll see develop. >> in washington to fight two of these battles at once? >> if you're the government or the company? >> the company. >> everybody's playing it to both ends, right? everybody's planing they want net neutrality just like netflix and apple and then they're going and cutting deals as well because they want to hedge themselves. >> it potentially helps comcast if people feel like, well, this is the company that's bringing us the apple tv. >> absolutely. >> we'll see. >> finally we can get a channel guide that actually works, right? i mean who's not going to love a cable company that lets you have an apple product on your tv. we haven't had a good channel guide since tivo. >> as a lot of talks often are early stages in a business where people talk to everybody all the time. >> and jessica pointed out she had a variant of the story a year ago. this could take a long time. switching gears this morning, investors getting

hungry for grubhub's ipo. now planning to raise about $178 million up from its estimate of $100 million back in february. grubhub expects to list on the nyse under the ticker grub. and in a month or two getting a lot of names come public. why does this one stand out? >> i want to point out one important thing about the stock. everybody is quoting a 67% revenue growth rate. that doesn't take in account the inorganic growth because grubhub and seemless merge. it's actually 44% year over year growth. still an exciting company. basically they own the two brands in the space. but i want investors to be cautious of that. >> yeah. they have a captive audience, there are very few competitors. it's seemingly a little bit less rich than some of the other ipos we've seen. only ten times revenue multiple, jon, what are you hearing from investors and people in this space? >> i haven't talked to investors specifically about this one. i've dug into the s1 a little bit. they've got almost 30,000

restaurants but kind of a low barrier to entry. there are a number of local names that tried to do restaurant delivery. so i think you've got to compare it to an open table. you've also got to consider 43% of their base right now in terms of consumers using it on mobile. that's not the majority. do they have any risk from mobile usurpers and even the yelps and open tables trying to get in on this? >> kayla, i like your point it's cheap. i think this is a takeout target for amazon or google. it makes perfect sense for amazon to have this as well. a billion-seven, you can have eight whatsapps for that. >> i like the barometer of how many whatsapps. >> yeah. >> if that the case, why go public at all? >> well, going public is always sort of a little bit of a game of chicken. they're going public to show they will do it. >> kayak, does this remind you of kayak? >> right. they could still be in talks right now. who knows, ultimately i think it's cheap. my math 12.5 times revenue.

not even in the universe of other things. >> interesting. ultimate pick going public. >> i don't know. they've got to do a lot more than they're doing already. because if you think about it, dominos pizza already doiz e does this at scale. and the delivery part isn't exactly the highest margin part of it. >> they only do it for dominos pizza, not 30,000 restaurants. >> right. if you're thinking about what is it they actually do and how much margin are they going to be able to get on it over time? think, okay, they're delivering food. >> and management has to come out with a big decision. we have not heard about drugstore delivery or local items coming to your house. where is management giving us a big vision for this company? >> finally, a column by david kar in the "new york times" makes a buzz taking a look at the journalists online and grow for pay for click model in which writers get paid a certain amount for each time a person clicks on that article. a lot of critics saying it's slowly destroying journalism. >> yes.

just because something is popular does not make it worthy, but ignoring audience engagement is a short route to relevance. we think a lot about that. ultimately sharing is vital as well. you can't build a brand that way, you can't build return users. in our industry we think about ratings just like television thinks about ratings. >> is that how journalists are paid at buzzfeed? >> no. it's vital stories are important and note worthy in addition to just being traffic. we would never want to create that standard at buzz feed. >> david car says, gee, news company being run like a business, you don't say at this point but how do you subtly see some of these headlines or stories tart to re-introduce themselves? >> i've got a past as a blogger and as a web producer. >> we know about your past. >> yes, a seedy past as a web producer and blogger. the danger in chasing just one data point is that it's -- they

spike up, they go down. you end up with this sort of lowest common denominator type reporting if you just chase clicks, you don't think about what are people really engaging with, what's this doing to your brand, is the information good. so the verge was just talking about how they don't pay that way. they don't even let the writers see how many clicks their articles get. and they do very well, by the way. >> well, clicks alone is a metric that can be very deceptive. you can't just show clicks because that incentivizes people. but this is the web industry growing up and saying in addition to having high journalism standards and high quality stuff, we've got to have traffic, we've got to have ratings. we look at overnight ratings just like television looks at overnight ratings. there's really no story other than it's just a business. >> even too "time" reporters know when it's the most e-mailed. >> absolutely. you wouldn't want people not getting a feedback mechanism for

the quality of engagement of the stuff they're writing. look. >> there are a lot of companies jumping on this bandwagon. it will be interesting to see how it does if at all does shape some of the coverage and how it comes out there. jon, thank you. jon fortt, you'll be back later this hour. >> yes. coming up next, the cloud is getting crowded. cisco is the latest to jump into the space saying it will spend $1 billion over the next couple years to offer cloud computing services. so has the gold rush for cloud companies already begun? we'll ask one of them in just a moment. stay with "squawk on the street." we'll be right back. ♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app

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dow's now down 63. lost our gains early in the session. look at health care the worst performing sector on the s&p this morning. dom chu is back at hq with that. >> hey, carl. tough day for all of these stocks. look at the biotechs, pharmaceutical companies alex onleading lower following for the second consecutive session. the stock up around 70% over the past year has one approved drug that costs about $400,000 a year. now, congress is crusading against high cost treatments, so those stocks very much in focus. also mylan, bristol myers and gilead. back over to you. >> thank you, dom. digital scrapbooking start-up

pinterest is looking with a select group of monitors to expand its business. you couldn't stay gone too long. couldn't move at all. >> barely been on vacation last week. >> happy belated birthday to you by the way. >> thank you very much. >> this is an interesting story. certainly not one that's new. we are finding out that pinterest is about to start rolling out these posts, but they started experimenting with them in september. any idea how it went? >> well, no, we don't have much of an idea how it went other than the advertiser said they were satisfied, whatever that means. the news is they say they're going to launch in q-2. it's largely going to be in search results and promoting pins. if you search for drapes or blinds, there could be a pin in the result from home depot or blinds to go or something like that. this is very powerful. it's a native ad product. fits naturally into it look google ad words or facebook sponsored updates. it's bound to be more effective. you have so many people on pinterest looking to buy things, looking to plan a new home

decoration. i think it will be interesting to watch. >> two factors, one is the demographics of pinterest are very attractive to advertisers, skews female, skews younger, a bit urban. >> i'll just say i use pinterest a lot. >> but i'll bet you're the only one at the table who does. >> that's not what you told me in the commercial breaks. >> and advertisers want you, kayla. the other factor shows when data shows when people click on pinterest and go to a retail arena, they're more likely to buy. those two things, great demo and likelihood they're going to buy something they see makes this trial particularly important. if they do it right, they target it small, they deliver good results, it could be -- >> but in the september post where they announced this they said this will be tasteful. this will not be a banner ad, not something invasive into your browser. how tasteful can advertising really be? >> this goes to every great online company. every great online company has a native ad department.

grubhub as a merchant your commission level you pay to have the food delivered goes up based on the amount that you pay them. your promotion goes up based on the amount you pay them. pinterest is going to do pins. that's better than having a banner. it's almost like google. you're basically searching for things you want to buy. >> i think what this means is pinterest is working with these advertisers especially closely to make sure these ads really feel like content. the people say, wow, this is something i would have pinned anyway, this is awesome. so if they can show the rest of the potential advertising audience how the pin should look, it could be good. >> that's a scale factor. i think jon is right. they're going to be hands onto make sure they're high quality. as they get bigger and bigger there's only so much approval they can do for each of these individual ads. so it could potentially be a scale risk the fact they want to keep it high quality. >> they're trying to draw comparisons with the absol

absolutvodka adds. >> fits in seemlessly and isn't an intrusive thing in your face. television commercials are basically negative ads. sight, sound and motion. >> you can't skip them. >> that is changing too. >> fair enough. >> think of what apple does with the app store. they put certain things front and center and give people that as an example if you want your apps to get traction, do it like this. >> and they have to ramp the avenue fast. valuation in billions. have to go ipo soon. >> nearly $4 billion valuation. almost no revenue. >> so this has got to be something that not only works but scales quickly and they've got to go public in the next couple years. >> thanks as always for insights, jon steinberg. jon fortt we'll get to you in a little bit. up next, delaware considering new legislation banning minors from buying e-cigarettes from across the state. we'll tell you what that means for business in a moment. and a company started online is expanding again further into bricks and mortar.

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welcome back to "squawk on the street." check out shares of pandora. the internet radio company is sinking after billboard reported late on friday apple was launching a new music service. that stock is currently down about 9% and trading near session lows. again, the apple effect getting into online music certainly having an effect on competitors like pandora. kayla, back to you. >> thanks so much, dom. the e-cigarette market may be growing, but if delaware state lawmakers have their way, minors will be banned from buying e-cigarettes in that state. ceo of mystic, a leading e-cigarette company sold at walmart and now at pep boys. john, thanks for joining us this morning. >> thank you, appreciate it. >> you know, it's an inflection point for this industry for sure. you think about states like delaware, other states starting to decide how to proceed with

the sale of e-cigarettes. as the ceo of a company, how does that influence the way that you make decisions and try and grow your business? >> that's a great question. first of all, we support all sorts of all the regulations by states banning to minors. we do not market our product to the minors. we are in fact encouraging retailers to be part of the e- -- or part of the program. and we encourage states do that. our marketing 100% directed at the adult current smoker. >> there's been some talk about how the prominence of some of the marketing, even if it's not geared toward minors, it's still located prominently at the front of the store, it's instead of some of these traditional cigarettes. do you think that the minor population if you have to cut that out of your growth model is going to hurt business in the long run? >> not at all. in fact, we encourage all retailers to put the product

behind the counter. in walmart for example it's in the traditional tobacco counter and they're carded every time and prompted to card when asked for their payment. >> so you're now in pep boys. you're in walmart, which you just mentioned. we did see a high-profile decision by cvs earlier this year to stop selling tobacco. are e-cigs going to replace traditional tobacco? >> if you look at the analyst today, bonnie in wells fargo, e-cigarettes will be as large as traditional tobacco. we chose pep boys and happy to have them. they sell a lot of their products to adults today. we think it was a natural fit to put it there. also talking about the cvs announcement, we do believe if that's something cvs is encouraged to do and the right thing to do, that's fine. we do believe though that retail

partners such as the dollar stores we are recently as we speak launching the mystic brand in over 20,000 dollar stores as well. >> john, now you've got the "new york times" with the industry in its cross hairs about liquid nicotine. basically a report on how little we know about the long-term effects of its use, that it's a matter of time in the words of one before someone is seriously poisoned. how does the industry respond to that? >> we respond in a couple ways. one, we do all of our liquid here in the united states under very strict quality control measures. we do not allow the liquid to be produced in china, which a majority of some of these e-cig companies still get their liquid nicotine from there. we as a company put a lot of quality around that. we don't understand long-term. we're working on the science of that. i think the industry's looking for science-based decisions to

be made here. one thing you should note, there's four basic ingredients in electronic cigarette versus 4,000 toxins and carcinogens in a tobacco cigarette. so logic will play out here. and i think that we got to continue to do the science, which we do testing on our product on a continuous basis. >> john, just a quick word about consolidation here. we've been talking about potential consolidation in the tobacco industry, potentially reynolds and lorillard getting together. how do you see consolidation shaping the tobacco landscape where e-cigarettes are concerned now? >> i think consolidation is going to happen even in the e-cig as young an industry as we are. we see a little bit of that today. altria recently in the last three days bought a company for lorillard bought for $339 million. reynolds is bringing out their product. i think consolidation will

happen. they're starting to see that they, big tobacco, needs to be in the space. you look back years ago with kodak, they got kind of left behind in the digital age. and i think big tobacco is going to try to get out ahead of that. but i will also say there's consumer products companies that will start to look at the e-cig business as well as a consumer product, not just a tobacco product. >> john, ceo of mystic, we'll leave it there. john, thanks. >> thank you. appreciate it. >> when we come back, this morning new manufacturing data makes it clear there is a slowdown in china. so says global chief strategist at blackrock. he'll tell us how bad it could get when "squawk on the street" continues. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities

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a sad ending for missing malaysia airlines flight 370. the country's prime minister today shows new evidence shows the plane went down in the southern indian ocean. >> their relatives had disappeared on the flight they had been told earlier about an hour and a half ago that they would -- that they need to come here for an emergency meeting. and that is where they heard the news from the malaysian prime minister that their families had disappeared for good because of the flight going down in the

indian ocean. now, it's been a very chaotic scene here where people immediately, one man immediately rushed out of the room where they were all staying. he stumbled down the staircase and had to be dragged out. there have been several emergency medical workers coming to the scene because we've learned that many of the family members who are still in that room have fainted. and so they are just completely devastated. and with the reality that they won't be seeing their families ever again. there have been the news that they had heard was from the malaysian prime minister, this is what he had to say -- the words that shocked them completely. >> it is therefore with deep sadness and regret that i must inform you that according to

this new data flight 370 ended in the southern indian ocean. >> the people here are, like i said, are utterly devastated by this information. some people have been coming out in stretchers. other people have been just rushing out of the room and actually acting out. there have been several fights now broken out. there are police on the scene trying to contain the situation. many people are just at a loss as to how they're going to move on from here. >> eunic on the ground in beijing. an incomprehensible situation but our thanks to her for covering it for us. we want to shift gears and talk about the markets a little bit today. they're in the red down 62 points on the dow. nasdaq on pace for its worst day in nearly two months. we want to bring in russ, global chief investment strategist with

blackrock. russ, thanks for joining us today. >> thanks for having me. >> we're down three days out of the last four. we did see some soft data overnight. what do you make of all of this? >> well, i think today's losses really come down to the data. we had some disappointing economic news out of china, once again. the manufacturing survey was soft and this morning we had more evidence while the u.s. economy is doing okay is not accelerating as fast as people expected. so what we're seeing is a fairly predictable reaction. stocks are down. yields which had been up this morning have pulled back. so a little bit of a continuation in the trend we've seen all year where investors are adjusting to economic data that is generally been soft. >> the consumer notably fragile, russ, as you've been writing for quite some time. i think the market expected that on the manufacturing side and on the corporate side that we would start to see some strengthening as we got into recent weeks. has that been the case? >> it has been the case.

and there are a few things going on. i think the challenge for the market it's not just been a period of soft data, it's been hard to sort of disentangle the economic trends from the weather. for a long time investors have been arguing we know data is soft, parts of january and february were weak but mostly weather related. i think some of the disappointment we're seeing today is the fact some of the softness is not only to be blamed on the weather as march got a bit more normal, we're still seeing many are coming in below expectations. >> the slowdown in china has been well-telegraphed throughout the year. it caused an outflow in emerging markets starting in january. but overnight when we got those weaker manufacturing numbers, do you think that's a sign of something bigger afoot we should be paying attention to? >> no, i don't. i think basically it confirms what people already know. and there are a few interesting things about the numbers. the first of which is while the economic data was soft, chinese market actually rallied. so we're getting to a point not

dissimilar from what we've seen in the u.s. over the last couple years where bad news may be treated as good news as investors hope it will produce a policy response from the government. china, we knew the economy was going to slow in some ways some of the signs china have the potential to liberalizing bank deposit rates earlier than expected, well, this is contributing to the slowdown in the economy. long-term some of these are positive developments because it means that china is looking to reform its economy, something investors have been waiting for for quite some time. >> meantime, russ, we got the worst day for the nasdaq in a couple of months. biotech, high momentum names continue to be given up in favor of what had been the laggards or certainly cheaper stocks. how long can that dynamic survive before the whole market starts to roll over? >> well, i think you can see a pretty significant rotation within the market without the market necessarily having a major correction. you know, biotech is an interesting case.

biotech, the social media companies, a lot of the big growth names really ran up over the last few months. and as a result getting fairly expensive compared to value names. so i think what you're seeing today or the last few days is more about a relative value play going back into value selling some of these high flying growth names rather than a problem with the broader market. >> so that is a silver lining to some degree, huh? >> i think it is a silver lining. again, i think the problem for the market is we need to see better economic data. but in the meantime what investors are doing is looking for value. and the biotech space a lot of the other high flying names have gotten expensive. investors who may not be willing to bid up the entire market are looking for pockets of value, for example in energy, that have been neglected over the past couple of months. >> finally, russ, whether we feel it or not, spring is apparently here. it's a big home buying season. we'll get first quarter earnings in just a couple weeks. what themes should investors be

watching? >> i think one of the most important themes -- you know, we spoke about the consumer, watch the personal income numbers. when you get those on friday, the economy is getting better. the labor market is slowly healing. one thing that's been missing is income growth. looking at friday's personal income numbers is going to be an important key on whether or not that is improving or not. >> russ, for now, thanks so much for joining us. chief investment strategist at blackrock. as we just said, the nasdaq down nearly 2% today. sheila's been looking at some of the big movers in tech. a lot of them, sheila. >> yeah, plenty to talk about. in fact, more than 90% of the nasdaq 100 is in the red right now. let's look at the overall index down by nearly 2% today. the worst day since february 3rd. and technically speaking we have now breached that 50-day moving average. a lot of people look at that. if you think about that 14-year high we just hit a couple weeks ago at the nasdaq, we're about 3.5% below that. so we are talking about a little pullback here that's notable.

the reason we're seeing this pullback, we've been talking about this for a couple days now, is the biotech stocks. nasdaq biotech down nearly 4% today. a lot of this was sparked by a specific company, gilead, and questions about its pricing. but analysts tell me even if it doesn't impact gilead, there's now the concern in the market that maybe three years out, four years out, five years out, there is going to be pressure when it comes to pricing. the high flying stock prices start to come down. russ was just talking about valuation and how investors are looking at more value-oriented stocks, here's a stat for you. look at biotech p.e. indices, we peaked about 24 times. now with this couple of days of selloff, we are down about 20 times, about an 18% decrease. if you look at u.s. pharma and s&p overall, those valuations have actually increased. there's certainly something to be said about what russ was saying that investors now really looking for valuation and

focusing on those fundamentals saying bye-bye to that froth thiness and big pulls that have pushed the value forward. >> all right. sheel la, little uptown at the nasdaq. coming up next on "squawk on the street," the cutting edge in retail innovation is opening up a shop on the upper east side, since when? the founders of warby parker are with us next on why the e-commerce site is expanding its brick and mortar footprint. ♪ [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. sunny or bubbly? cozy or cool? "meow" or "woof"?

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coming up top of the hour, could the bulls be in trouble? we're flagging the warning signs many investors might be ignoring. and fresh off winning three more herbalife board seats, carl icahn joins us on what he thinks on the ftc investigation of herbalife. and bairn revealing list of ceos and getting traders to weigh in on the worst bosses. straight ahead, carl, see you then. >> sounds good, scott. thanks. warby parker considers itself an alternative to overpriced and bland eye wear. the start-up that began as an online retailer is continuing to expand its bricks and mortars presence. over the weekend they opened their third new york city location on manhattan's upper east side. warby parker's co-ceos join us.

we check in with you guys from time to time. and it seems like soho was step one, now another one. this is obviously working, right? >> yeah. so we launched four years ago for the first three years. we're selling 100% online. and we now have five stores open. this is the third one in new york. and we're finding just amazing synergies between having bricks and mortar locations and compelling online presence. >> was this always the plan? and is five or three -- wherever that mid -- half a dozen, is that where you stop? how far can this go? >> we think it can go pretty far. as dave was saying it helps boost web sales. sort of a win-win-win where we create awesome brand experien s experiences, increases awareness and drives sales both through the stores and in our website. we're finding that our sales per square foot is actually on par with some leading retailers like lululemon and michael kors. >> there's a story in "new york

times" saying how birch box, a lot of these companies are reverse retailers, start online and then you actually bring your customer base into this store. is this the model we're going to see going forward? >> i think the best brands in retailers realize consumers don't think about channels. they want the best products and service. and they want to find the most convenient way to engage with those brands and buy those products and services. so for us we realize that 98% of the eyewear market is in the bricks and mortar world so probably makes sense for us to have a service and let consumers decide. >> how much of an adjustment has it been dealing with signage, right? inventory. lights. all the things with real estate you didn't have to consider when you were a pure play online? >> let's take the upper east side store for example. we saw this space, it was on a corner, it was beautiful. it was a pharmacy for over 90 years.

21-foot ceilings. and we went in there at first and, you know, it's just going to cost too much to build out. so it took a little bit negotiating with the landlord to make it sort of financially viable for us. and, you know, we have to be working a year -- almost two years in advance at some times for these really special locations. and for our internet guys, right, that's a lifetime. >> what is having the retail store done for your sales? you had such a loyal following online. i have to disclose i'm a customer. i've been a frequent customer in fact. it's easy to use. and, you know, you sort of just get used to doing it that way. but have you actually seen a loyal following in the store? and do you feel that they're coming back to the stores to make that real estate worth it? >> yeah, we're finding that existing customers will go in there just for fun and often bring friends. we have photo booths in most of our stores. we've created these reading maps that we work with this artist. so we try and keep it a whole experience. but we're finding that it's

exposing us to customers that didn't feel comfortable buying online. and once they buy in person and they actually see the quality, then they're more comfortable going online for a second or third purchase. >> what percentage of -- i guess i've never ordered, you have, right? >> i have mine right here. >> so how many frames if you want to try some, five? >> we have a free trial on home programs, select any five frames from our site we'll send them to you free -- >> does anybody try to make off with those and never send them back? >> we do take your credit card information. our intention is not to charge you. we do have some people that get frames and decide to keep them. and they might not need prescription lenses. >> are there prescriptions in your lenses? >> i've been wearing prescription glasses since the sixth grade. >> okay. >> so we got -- >> i wear them to look smart. >> yeah. like with lawyers -- it's big with lawyers. has the average price point been going up or down or relatively

stable over the last year or so? >> so we launch warby parker because we thought glasses were outrageously expensive. so selling them directly to consumers, we can dramatically bring down the prices. so our glasses still start at $95 including prescription lenses. we have a couple other price points, but in general our intention is not to raise prices. >> have you seen consumers opt into graduate some of those higher price point sns. >> we've seen no price resistance when we've introduced new frames like titanium frames at $145. and actually out of our stores we've now been experimenting with progressive lenses at the $295 price point. that's still a fraction of what you'd usually pay $800 $900 for progressives. >> would you ever bring the eye doctor in house? that's the one thing you have to go and do elsewhere. >> so now in our upper east side store for example we have two examination rooms and have two optometrists on staff.

and then in our soho store and our meat packing store we also have optometrists. one of the things the regulations sort of vary state-to-state. so in some states we can't actually employ optometrists, but where we can we'll have exam rooms. >> amazon just lifted their prime subscription. it's not unthinkable you could raise your standard price and not feel too much blowback. >> we're not tied to one price point, but we always want to deliver exceptional value to our customers. over time we probably will have some different price point products. but, again, always want to have customers feel like they're getting a great deal. >> we'll see you on the upper east side, guys. thanks for coming by. let's send it to dominic chu. >> all right, carl. another high beta name getting wacced today. michael kors stock down although just off session lows. this is a stock up about 70% over the course of the past year. so some profit taking, but remember, kayla, a stock still

worth $19 billion in trades at 32 times last year's earnings. back over to you. >> and the envy of a lot of retailers, dom, thanks for that. coming up, data that actually shows value of big data. we'll explain what we mean coming up next. bulldog: you know, not all heroes wear capes.

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welcome back. is the cloud being commoditize? cisco announced it plans to join the race by offering cloud computing services. jon fortt joins us with an exclusive look with data from adobe's best of the best. what does it find? >> on the cisco thing it's just interesting so many names jumping in. we've seen google jumping in to offering cloud services. that's going to cause a lot of a ruckus in the space. but what are people doing with big data? adobe is going to release some stats tomorrow at their digital marketing summit. i've gotten an early look at some of those things. they say the best people at using data particularly in their marketing have these kinds of results. okay. in tech 68% higher tablet traffic. 50% better stickiness, that's visitor engagement for retail. in media, 35% more time spent.

so what are they doing? in retail the retailers that are doing the best job are showrooming themselves. so you go into the store, you've got qr codes you can scan with your phone, get more information about product, you know that they're going to price match when you go in. so you're not concerned about trying to subvert the retailer in your experience. in travel it's interesting it's an integrated experience where you're able to do as much often on your mobile device as you are on the website between booking your flight, doing your hotel and doing your car all from the app there. and then in media, personalization, but not in the kind of ten years ago version of personalization where based on one data point they have on you, you like cars so we're going to show you this stuff. they're going deep like netflix does using the data to figure out what they should show you. >> but this talks about tried and true methods by companies who have already been doing that in these sectors. when you think about cisco, now in 2014 announcing it will start offering cloud computing services. do you feel that they're late to

the game? how are you marking that up? >> well, with cisco in particular when it comes to the cloud they're jumping in sort of the way ibm is and amazon. so it's from a different perspective. but they've got hardware on the back end and services so they can monetize it. >> an important sector right now especially with all these companies getting into it, jon, thanks. >> when we come back, another major revelation from edward snowden, this time concerning chinese telecom giant. we'll tell you what it is in just a moment. weekdays are for rising to the challenge. they're the days to take care of business. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive,

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another major revelation from nsa leaker edward snowden. apparently nsa hacked chinese giant ironically because it was concerned about chinese hacking. a age. >> this story "time" saying they've got snowden documents showing the nsa tried to hack into huawae. you get a sense of what the nsa was trying to do. the nsa penetrated the chinese company huawei, a technology concern, looking for links to the people's liberation army because u.s. officials have long said they've benefitted from

stolen american technology. also at the same time the nsa did sought to exploit huawei technology experts in order to spy on people in china or overseas using those technology pieces. the nsa thinking they might be able to get access to those conversations. it's important to note here that huawei is an independent company not controlled by the chinese government. also, the u.s. government in reaction to this story says, hey, wait a second, the united states only spies for national surt security. the u.s. does not spy in order to benefit american technology companies. so it's not taking anything it gathers and turning it over to u.s. companies for their benefit. the u.s. says other countries are doing exactly that, guys. fascinating story here and a look inside a real cat and mouse game. >> thank you so much for bringing us that story this morning. a bit of news from the entertainment world. the corporate parent of new york's madison square garden is taking a 50% stake in robert di

ne ro's organization. >> take a look at madison square garden today over the weekend making this announcement that it is acquiring a 50% stake in tribeca enterprises. a really big headlining film festival in new york city. now, the deal itself not too terribly large. it values the company at about $45 million, but obviously high profile names and a high profile venue. now, this comes on the news last week that new york knicks is bringing on phil jackson to head up basketball operations. both have analysts getting bullish. we've had several announcements reiterating buy. that being said, we're looking at shares. shares are actually down close to 1% today. we're going to continue to keep an eye on madison square garden moving forward. >> they've been in the news quite a bit the past couple of days. thanks so much, morgan brennan in l.a. with that interesting

wrinkle. markets here obviously have lost their gains in a lot of the high multiple names, kayla, that we talked about for most of the past year or two. trip advisor, priceline, gilead, facebook, michael kors, all the high multiple names are being traded in basically for names that haven't done much in the past year, proctor & gamble, mcdonald's, at&t, staples. >> yeah. when you look at the biotech index i know sheila was talking about it earlier this hour but the move down has been pretty stark down 7% for that biotech index which is a sharp move in the last couple sessions. >> the dow and s&p have not had a losing march since 2008 and they're just barely in the red for the month. the last significant down march was actually 2005. so we'll see. by the way, the markets have not put together three winning days consecutively for the entire month. so it has been sort of a difficult month in terms of news

flow. >> and data driven market. >> last week was a big adventure as well as everybody knows. scott wapner has a lot to work with for the next hour. scott. >> carl, these high beta names, you focused on the high beta names, tesla, netflix, names rom rolling over pretty hard and nasdaq 100 getting hit pretty good. >> as cramer said cheap tech, at least for now. >> harder and harder to find cheap tech too, you know, that's one of the challenges we're going to get into today. you have a great one. see you tomorrow. welcome to the halftime show. busted biotechs is one of the markets most trusted sectors finally showing cracks? apple's big bite, what reports of a new streaming service could mean for that stock which some say is about to bounce. ceo score card, the best bosses to bank on coronet barons. carl icahn bottom of the hour joining us. his first