are having a wholetice production discussion of the future of xp. >> thank you. come back. great to have you here. our privilege. make sure you join us here tomorrow. squalk on the street begins right now. ♪ >> welcome in. along with jame crim cramer. full week of q 2. after that rough session on friday. ten year stuck around 272.

lower open the nasdaq looking as if it was opening. >> all getting upgrades merger monday, among them $5.2 billion farm deal and talk about drama hbo go crashes during "game of throwns" and thea who may be pursuing regional programming. >> the biggest loser was the nasdaq. 2.6% drop. led by all of those names before the bell on friday, cr are amer warned you the selling was not over. that is a dichotomy that people

at home need to worry about. the insiders need to have a price that they won't go. >> i was, i mean, you are pretty good. but that was really good. you saved people a lot of pain on friday. that was a nice lift. the list was false because there is a lot of funds that are on the wrong side of the trade. i think we should never invest in irony. it was something to have a caesar chicken wrap on my shoulder and a pizza on my other shoulder. what happened friday is the beginning of liquidation. it started earlier in the week. there are funds that are down a lot in selling. check the headlines of stories. go to yahoo finance and you will see sale after sale after sale. the market can't handle it. there is not enough cash rep.

as i pointed out a number of times. the pain was a lot worse than you would see with some of those decli declines. among some of the big funds investing in the stocks. has been worse. one wonders how that will continue to play itself out. maybe it is done, jimmy don't know. it is important if it is liquidation we won't know. it is entirely possible that we get to some level where actual biers come in. we were not on that level on friday. netflix, yelp and in tell. it held up. look at enc it gave up nothing. traditional old line tech. the stocks that we had to warn

about. the fundamentals are fine. just got over valued versus where people wanted to sell it. those are two out of three you have to watch. a lot of upgrades on the street this morning. they out perform saying the recent sell off has created a buying opportunity. also pacific crest upping intell to out perform. under armor upsell coa. is this a function of getting cheap enough? >> there was a note today golden buying opportunity in enterprise so software and it has the hit list. this was the april massacre. workday, fire eye, net sweep. all good companies, let's see whether this along with the issues that you had could cause

things to stablize. in the meantime procter & gamble could raise it's dividend. warren buffet likes it. when you read that he is not just bad luck, he has lost his game, lost his alpha ability. i think this is a procter market right now. the one thing that could scare the shorts is that one of their favorite names to short got a take over bid this weekend. mallen croft. >> i recommended quest to "mad money" and i was hit by a word that aetna wasn't going to support it for the syndrome and this was a name that people told me was the equivalent of autonomy. that could scare some of the

shorts. and bet against the workday and concur. let's talk about some of these deals. maybe we'll call it a merger monday. we had that deal on the pharmaceutical side. $5.2 billion or so in cash and stock. well, it was at the time 86 and up. it will be worth the deal. giving credit to a lucrative ms drug and $30 a share point. questioning the actual chemical make up of the ingredients in the gel which is one of their key for -- >> that is their key really.

>> right. >> so they have a 20 plus percent shortage that being quest core but what is a more important theme here that we continue to talk about playing out time and again is tax in versions. it is an irish corporation for tax purposes. it is the st. louis corporation in the real world. there are two worlds. they do not have that kind of a tax jurisdiction. when you are in specialty pharma you need to pursue a tax in version on your own to be able to compete you want to in square as many products as you can. and the stock goes higher.

this is a drug that was questioned they questioned at 60, 50, and 30. obviously not questioning it. how many divisions does malencrod have versus citron. always talking about the indications. it is good people the shorts will say it remains closed. you can assume this was the best they could do. it was 49.5% of the combined. 50.5. it was the smaller of the two. quest core didn't have that

irish tax treatment. you can't compete now in specialty pharma in particular. when we talk about these tax treatments. look at endo they have higher multiples than any of the other companies that do the same types of things that don't have a more favorable type. >> i thought for sure that perigo did a deal. i thought for sure that perigo would see through it. i put them on "mad money" and i listed it. i said earnings per share are earnings per share. it worked. it went up dramatically and when i look at what mallincott is

doing. until our government figures this out. if you are a phiser or like any of those names. you more it and try to lower your income as much as you can. you don't need to go to ireland to do that. the cash you makeover sees you can't bring back for acquisition without it being taxed. >> so, it helps in a lot of different ways. in areas like specialty pharma where you are acquiring a diversified group of drugs. they did a deal all of these hot deals came during that deal. they are making people a lot of money. i remember when it was a great

chemical company. again, the idea that it is a foreign company is ridiculous. >> orange county company getting together. it goes to the point that you made. and the need to do something and yet what are the hopes for that. i remember taking classes at that facility at harvard and it was a rich fantastic company with a rich family. i guess they were irish and i didn't know. >> tax attorneys would say they are great americans. >> what is the point? >> when we come back this morning millions were treated last night to the new season of hbo's "game of throwns requesth. nasdaq is off and more losses

today. stoi.

♪ >> is she yours?

>> i'm not anybody's. that is the season four premier of hbo's "game of thrones". looks like there is trouble in the realm. i've always.

they knew steve. he was probably one of the great wrestlers of all-time. they said steve's kid came out great. come on. steve can't be. yeah, i mean his son and it's a remarkable show. it is one of the most successful shows of all-time. it is charging people $14 a month for the privilege. that is not an in significant sum. the yahoo news is going over the top. we are getting ready as are the content providers.

every day we get closer and closer to that world. people have the video service and the broadband coming into their home. there are so many different things happening. a content that needs to be produced for the companies that want to get involved in servicing their subscribers. i heard this is for youtube. makers is an interesting company. many people wanted to own this property and it is the plum because people want to do shorts, they want to do -- >> he did an interesting deal with dish. it was complicated in a sense but creating an over the top product that dish can offer two people. >> brings to mind the numbers for captain america winter

soldier. $96 million that is the best opening of the year so far. they have done aventhers and iron man 3. the top grossing films each year. >> bob has been on the show a couple of times and one of the things that we talk about is the brands. what has he done? he has created a procter & gamble of the movies. they have these billion dollar brands and is there any idea that we won't see the star wars? >> their slate is built until the end of 2028. there is no need to experiment. you have held and shoulders. why do you have to do shoulders and heads?

>> right. >> when will they start opening movies over the top at the same time as the screen. >> some guys are in the driver's seat and david car. that article was about comcast. powerful about playing off of jim securitewart's article. >> not just a cable company. he tipically does. just throwing that out there. >> correction. >> that guy, i know he doesn't. >> that guy? >> he is like one of the four top journalists. >> i don't think so. >> wow, i think that is called -- >> difference of opinion. >> we can. >> we can. i'll go up against him anytime on all fronts. >> i have read him for 30 years. >> i don't see david coming on

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good morning 7 minutes to go here before the opening bell p. but let's talk a little bit of alcoa. they have done a remarkable job from here. this is what is important. deutsche bank downgraded the stock here. you've gone double stupid. >> wait to see the quarter. any stock that has gone up 60% is vulnerable. >> how do they avoid being vulnerable with that move up? >> they can't be. the only thing, this is just exactly the wrong time. i have talked about this downgrade with people in alcoa and we were shocked that he took it down so low at the time that

alcoa is beginning to get pricing now that the rules have changed. remember they have both downstream and up stream. you have made fun of me for being a backer of al coa. this is important, goldman finally comes out and likes the airlines. they initiate american air with the fine. that could be a bad sign. what you are seeing is, thank you these are cabitulations. you can't say that guy got it wrong. where they have come in. but these are real world stocks and it is not the real -- >> everybody tries to get that return are. i've never seen that before. it is a first on cnbc. you can be sure where the stock

is going. infinity and beyond. >> that was one of my friends from high school wrote that line. alex, okay. all right. here is the thing. these are still not that cohort of fireeyes someone saying buy them. i have been picking on them because i'm a means, because i've been using the stock that is over valued but a lot of people feel has good security. watch american and watch alcoah. i want to wait until wednesday. it is not going to be so good that you are going to want to buy it. >> jim is going to want to get to the b stocks after the bell. >> and then we'll do some d's. we have the opening bell four minute as way. stay with us. salesperson #1: the real deal is the passat tdi clean diesel

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later in the week with family dollar and jp morgan. earnings expectations for the quarter not all that impressive and i think that helps if you are trying to figure out whether you can get into something. >> you tend not to get hurt. so don't look to any earnings. that is one of the problems. i think one of the problems that the momentum investor has right now. there are no data points that are going to change. it is not like they are procter & gamble. >> yeah. they admitted to adding that engine sound. if you have driven a tesla you would know the sound.

i hear nothing. how is that? let's get the opening bell here out of the way. kicking off the week. here is the big board. the independent petroleum assessment. etrade financial doing the honors. man, what a couple of days. talking about p the saabout the of water flow. >> is there irony between schwab writing a critical letter. and the stories keep getting more complex and you know i think there is a lot of finger pointing. and the story is amazing. no one seemed to carat all. that was a fabulous interview

you guy s did. senator kaufman was speaking about this loudly. senator kaufman was a combination of 60 minutes. >> you are right. one senator not as important as one writer. he said was happening. and by the way, there have been other books written about it as well. >> he referred to that in his column. >> i remember him calling me saying will you please look into this. >> i remember people who were my friends and they agreed that it is true and happening and it is a tax on the system. they say the same thing how are we supposed to make money. how are we supposed to make money? i guess you are supposed to come back and say not that way. the exchanges have always been a

challenge for profit. but senator kaufman spoke, it was kind of like how did this happen that it was something that i used to put him on all the time. we were like why are we having more impact. the answer is we are on a business network and we were unable to get it going to main stream. you cross over to broadcast and you have a book written by a compelling writer and you have a hero. and that blew out everything. so it looks like times are changing. they may. we'll see what develops from the fact that it seems to be a real marker on this road. >> this could be put away in a drawer. >> i found a piece that i did in 2009. it is so ridiculous they run ahead of you. where is the sec, where is the

justice department. my nephew said, remember when we said stop talking about this already because you are boring people? we have to move on. >> let's move on. watch hsld today. the land's end split being official and they are carving out the best for his own sha shareholders. he is going to try and get what he can out of it. but what are you left with? part of the that becomes the

question mark for what is left. sears out so and then craftsman. what are you left with. a place that you and i would never shop at. >> as you know it is typical to have double digit declines. going to out perform a price target of $4.19. saying it creates a buying opportunity and they take yelp with a price target.

that looks like a procter & gamble product. they need to stablize. i don't know if they can. the selling was so explosive. pandora getting an upgrade keeping the $35 target as not in the green. you will be looking for stable says among the upgrades.

they have been very good. they upgraded but they derisked it. is that like be iing filleted? >> is yahoo down as well? >> like when you get the shrimp? i didn't know they do that. you have to ask for it. >> you guys mentioned alcoa at the wall.

have we mentioned phizer? >> it is down 2%. i'm glad you tried to say it. apparently the mid point on the trial perhaps was a bit better than what showed at the end point. it is still positive. we are talking about a breast cancer drug that doubled the amount of time patients live without worsening the progression of the disease. the actual old line pharma had been doing well. i wouldn't be surprised if they have this nice franchise going and it represents a stock and it fits the parameters of what is working as opposed to what is not working. >> it is not working today. some disappoint given what appear to be better results.

this is a phase two trial by the way. phase two is so far away from approval. >> you are along way away from an nda. >> a lot of main stream play this morning. doubling to 20 months the time that an advance tumor does not progress or grow. >> that is a mistake to sell that stock. it has done well and phizer has a lot of things that are doing well right now. there are a lot of people that want to make a stand and i say, i had a fellow by the name of david crane on. >> he's the ceo of a large company. probab probably the most forward looking. they say you ought to look at solar city. it represents the way to have a panel on your roof rather than

have first solar on tonight. they are the ones you think of. you have the vast array of panels. i want to watch solar city too. that stock has corrected that is another name that people have given up on. let's see if that can hold. >> you watch gm down about 2/3 of a percent. starting those ignition repairs today. they met with ken feinberg and start to decide who is going to get paid or not. based on a ledgely false information over the years. >> nobody has their bonus called back. i will say this, there have been a lot of lists put out in the last 48 hours. my travel trust owns gm. i heard that gm is the most over owned. i think gm is very in expensive.

but if it has that much of a hedge fund following it wouldn't last. look at stocks like under armor. it is not going up. the liquidation continues here. >> it does appear to. so call eed draw downs. >> it is not a period where hedge funds have redemptions. >> i'm not talking about redemptions at the fund. >> doing poorly right now. we are not in a period where the windows open. where they are like look i don't see a lot of funds have a first quarter window in the time that -- >> people are not going to pull on a downside. >> those who are shooting against the hedge funds, save it for the quarter. if that is your game you are shooting against a non wounded tiger. maybe a sleeping tiger.

maybe a crouching tiger. >> hidden dragon. >> thank you for buying into one of my analogies. one of my literary and cinematological? >> the issue is about the nasdaq and some of the momentum names here. throughout the morning futures were weaker than the s&p 500 futures. that is a bit of concern that we have here. look at the whole week. we were down last week 1.7%. the s&p 500 is down 0.4%. you can see in the last two or three days. you can see that drop down. the nasdaq and the weakness that is there. the problem is pretty simple. if we don't have the data that

the ceconomy is getting better. the valuations are there. a lot of these momentum names are trading at twice that valuation. you are going to get questions by these companies. meantime, let's talk ipo's. this is going to be a huge week. we tell you how this is going to be building and building and building. we are going to have 14 ipo's this week. really big one is the largest

ipo of the year. this is the old gmac. they have expanded and have a bank now. ally financial. 12 o other ones as well. you can argue about whether or not but they keep coming. the average per month is about 30 going back for the last 25 years. right now we are averaging 26 per month. so we are we think this is an ip p o flood. guys, back to you. results of the national airline quality rating out this morning. how did carriers fair in the study? >> good morning phil.

>> it was a mixed bag in 2013. we'll tell you why. we look at the top five airlines rated in the annual rating. virgin america for the second year in a row ranked number one. of the 15 airlines who were the five lowest performing? frontier, united, express jet, skywest and american eagle. there you have the best an the worst. i said it was a mixed bag at the top. what do we mean by that? two areas complaints dropped 15% and nfewer dumped passengers. the airlines did a poorer job in terms of on time arrival. that was a drop of 3% compared to the year before. the percentage of miss handled

bags. when you look at last year it was the highest in terms of service but a mixed bag. back to you. when we come back, don't go ahead. we did a 27-point inspection on your chevy,ce, you got new tires and our price match guarantee. who's this little guy? that's birney. oh, i bet that cone gives him supersonic hearing. watch what you say around him. i've been talking a lot about his procedure...

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guitar strings. strawberry yogurt. apples. >> the wand like device is linked to shopper accounts and includes a bar code scanner as you saw that allows users to say the items they wish in their pantry. they want to be present for every moment you consume something. >> they are not constrained by that. they are willing to invest that and given that by their share

olders. and they do generate free cash flow. they are not judged on reported earnings and based on day one from 1987. judge us on our ability to capture future cash flows. i think that is fascinating in the grocery business which has to be the same day. all of it keeps advancing the same way. >> it is interesting. there are a lot of companies like asplunk saying look, please don't judge us by easternings. this are not companies like the year 2000. but what you see is, these companies that have said the opportunity is too great. we can be amazon for our vertical and that is what you have to watch. the companies that have said that. they need to make a stand. today could be an interesting

day. we are seeing under arm mer. it is down three and now it is down a dollar. i think you have to wait until 2:00. that is when the margin selling usually runs it's course. we might be at a level where we could get stability. but watch today. we need to see the sellers and walked away. some of the upgrades they are sitting at the bottom. >> when things are out-of-control, the technicals are out-of-control.

>> if you held them what would happen is if they hold maybe i can't be as negative. if it holds, saidly suddenly i good. this is a two month low now for the nas and we are off 6% from the all time high. don't go away. i know what you're thinking... transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process.

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switch to comcast business internet. then add voice and tv for just $34.90 more per month. and you'll be ready for tomorrow today. comcast business. built for business. we did have interruption in data. in the green at $41.20. let's get to jim and stop trading. one that caught my eye. zinga, stop laughing they have a guy by the name of don matrick. he was an accomplished ceo and he has a great balance sheet and has a lot of things going.

a lot of new games, i like this call this is a name that has been given up for dead. you have to look at it. the idea saying it is the best idea list. don't sneer. this is a well reason ared report. >> well reason ared. >> how did you know i was sneering? >> did you see it out of the corner of your eye? >> i'm getting a sneer from you. >> i think again this is the day, this is the day that they must hold. >> i think you are high on the ratio there. netflix is up from 7. i would take a shot at one or two high multiple stocks. i would. >> i am prepared to be wrong. i would take a shot. i think there is strength under lying. i'm saying one. not saying that this is your

bottom. that is false. but some act better than i thought they would. >> talk about a momentum stock that has been on fire since march and that is first solo fslr. i don't know whether their statsta strategy which is mon silicone based. is this a distributed power play? >> you are a giant utility and you want to go solar. you have solar fields. james whughes is the man to cal. he has done a remarkable job in turning the job around. let's yeah, i'm saying that you can take a shot. yes, you can take a shot even with a tesla. >> uconn or kentucky? >> we'll see you tonight, jim.

>> we'll watch the nasdaq as jim has suggested. we'll be back in a minute don't go away. now a thing about an ir♪ ♪ and i got the tools ♪ to do it my way ♪ i got a lock on equities ♪ that's why i'm type e ♪ ♪ that's why i'm tyyyyype eeeee, ♪ ♪ i can do it all from my mobile phone ♪ ♪ that's why i'm tyyyyype eeeee, ♪ ♪ if i need some help i'm not alone ♪ ♪ we're all tyyyyype eeeee, ♪ ♪ we've got a place that we call home ♪ ♪ we're all type e ♪

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♪ >> a record number of warnings from companies before the earnings season. find out what we can expect. >> sears begins trading before it plans to close it's flag ship store. we'll talk about sears canada. >> first, we are going to talk about the markets on this monday morning. tech stocks got clobbered last week. all falling 20% from the highs. is more tech pain ahead?

let's bring in our panel. also joining us is channing smith with capitol advisers. we look at some of these high flying names in the spotlight continuing to slight. is it a signal for the broader market? >> i think it is investors taking money off the table. growth is where you want to be for the next three to five years. these companies ran way too fast too quickly. in the next couple of weeks it is a good time to buy them again. markets do this. it is time to take profits and they all stick together. they sell them in bunches. would you agree with that? it is a healthy correction? you want to take the opportunity to get back in or does it looks

like panic selling? >> i would agree that there is a p pull back in the cards? one of the things that is interesting that we have been tracking is the momentum. if you look at the technical damage, it is pretty significant. it is 50 day and 100 day moving a average. the only time we have done that is in may of 2014. we bounce off of those levels. 4,000 is a key level that we are watching. if you are looking for a bounce,

you said they would have to bounce off their $200 a week. do you think it could be that bad? >> i don't think it will be that bad. i think you will see buyers come in. the key is these earnings. if you look at twitter, it was a high flier. we got a disappointing earnings report. i think those stocks will have suffered the most. the old tech, if you look at intel, a lot of those valuations come up and the growth isn't there. it is not there so i think there is room for correction in that area. the sweet spot is probably in between. apple, google, qualcom, nice dividends and good free cash flow support. some people will be worried that there is something much bigger here. >> could we put up the charts of

the ten year yield if p possible? the yield on the ten year is going in the other direction? we have lost 30 basis points since january. is the growth within the economy to sustain the earnings where the market is at the moment? >> i think a lot of people look at the ten year to look at what is going on down the road. right now there are other things in play for the ten year. investors outside are buying our ten year. we have the europeans looking to cut rates again. you have the macro factors they are offsetting each other. we are looking for fundamentals. i didn't realize that the expectations have been down graded as much as they have. i understand they are saying 1.2. >> the weather factor. i think guidance is going to be

key. >> it will be company specific. when you group them together, look at specifically are you buying the right company that is going to grow through the first quarter. but i want to own companies that are going to grow and have bottom lines that are going to grow. at some point rates are going to back up. i hope they do. >> finally, where does that leave you? where do you want to be in this market ahead of earning's season? we get the fed minutes and we have this question of looming higher interest rates. >> capital advisers we have been dialing down the risk and moving into c oxcoca cola and we know revenue earnings are going to be there. valuations are elevated. i think friday was key.

that number was a disappointment. let's be honest. the whisper number was higher. everyone was expecting that snap back and it didn't happen. growth is coming along at this rate that we have seen in the next couple of years. there is going to be head winds for higher evaluations and higher market. good morning don. >> you guys were talking about it. we kick off that large cap earnings season. stocks appear to be running out of steam now. it hasn't been a big pull back and there are caution flags being waved aaround. you want to pay attention to this earnings season. you have to know earnings growth

expectation have been set early already. only expected to post grown of around 1.1%. second, there is a somewhat positive lining and that is the sales picture. sales have expected to grow by 1.257%. that might not seem like a lot if both come to fruition there. it would be the first time that sales growth has out paced profit growth. so here is the story for a few key sectors to watch. the strongest growth will come from telecom and consumer discretionary. those stocks expected to grow by nearly 6%. as a whole flat on the year and those stocks are down 4% in 2014. the worst performing sector in

that basis. the weakest profit growth is expected to shrink by 3%. and energy stocks are expected to shrink by more than 5%. three out of ten sectors are expected to post profit c contracti contraction. stocks just off all time highs, fundamental investors may pay more attention whether or not the numbers can justify those current evaluations. those earnings season can be critical. >> thanks a lot. >> ecommerce giant testing the amazon dash. dash will allow customers to scan products in their pantry or verbally order products via a

microphone. what is the ultimate potential of the magic wand? to try to keep it clean. we'll get your responses later on in the morning. when we come back. the big change that could turn atm's into big security risks. switchgrass in argentina, d 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. ♪ aflac, aflac, aflac! ♪ [ both sigh ] ♪

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welcome back to skwalk on

the street. mobil payment network that aims to reduce transaction costs and cement customer loyalty. russia aims to have its own payment program. both names reacting to the downside with the overall market. karl and those two names back over tow. >> don, thanks. beginning tomorrow. microsoft will end tech support for it's 13-year-old windows xp system. why is this a big deal who could still be using the 13 year old system? just about every atm that you see. >> reporter: every atm besides the one that you see behind me. 95% of the country's atm's run

on a computer supported by windows xp. these bodegas run on something other than windows xp p. you could see security loop holes when you go to an atm. they are paying for extra support for microsoft as they work to transition atm's. bank of america has a market larger than here in the u.s. they will continue to provide support beyond that date. there is no impact to customers or clients during this transition. in addition to bank of america. jp morgan, chase. citigroup. among the big groups paying for

this extension to work to transition their systems over but if you use a regional or community bank that doesn't have the deep pockets to pay for personal support from microsoft or pay the thousands of dollars, you should go in and ask to make sure that your card will not be compromized when you are using the atm's. 13 year old system and we are getting to april 7th and we still need more time. when you talk about security concerns will you talking about hackers coming in and stealing pin numbers and money from their checking accounts? >> we are. that is one of the risks sara. microsoft is no longer updating the security for windows xp. it won't be coming of age as

moiz microsoft is getting the capability there. they want them to start paying more for the system. but you can be sure that banks don't want to have those vulnerabilities but it is interesting that we have gotten to this point. >> correct me if i'm wrong, but most of the bodegas are owned by independent companies that are running those atm's? >> yes, they are simon, but they actually run on a microsoft system that is older ironically than windows xp but one that microsoft is still keeping support up for. the one behind me is on that older system. microsoft is saying we'll continue to update the security for this. >> it is time to go to big coin.

>> you were saying that is the 1200. it is down in the 400s but we have come a long way. we have a concern. >> i'll take my chance with the bodega, atm. thank you very much for that. on the nasdaq today the stock down almost 8% this days of the flag ship store in chicago closed it's doors for good. what does it say about this retailer in general. we'll have that live after the break. today is monday today, we greet you. treat you. care for you. today, you can come to cleveland clinic

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the retailer land ooz end and sears closed it's doors in chicago. he is the form er professor of

marketing at columbia university. >> can you spell the word run? i think they should run are and sell. the likelihood that land's end is going to be able to sever the tether to sears and become viable again, it may become profitable. as a stand alone basis. they are going to have to recreate and and reacquire, some of the assets what is left? is it the under performing core

business of sears and k-mart. they are selling off their most valuable properties and it is problem attic as to what remains for the future. >> eddy lampart is not fixing the stores. he is reengineering the group. he is returning $2 billion over two years. i'm assuming you are not going to go and defend eddy at this stage. >> i have no intension of defending eddy. i would describe what is going on as a liquidation. eddy lampert is doing nothing more than stripping the assets of a legacy brand.

they have done nothing that suggests turn around is viable in the 8 years that he has been in control. it evolves around ecommerce and membership model. given the rise of brick an mortar stores that have not been invested in years, their business has been in serial

decline. these new strategies have failed one after the other. they may show some signs of success but i don't believe they move the needle. >> chicago was a new store though. they opened in 2001. why do you think they say they have had disappointing sales in chicago. the store would profit from a showcase for it's brand. but arthur martin retired in 2000 and his successor was a clueless financial executive who had no idea how to manage sears at large. the store never looked good, never was merchandised properly and never performed as the lease

expired he basically walked away from it. is there anything good you can say about the efforts that are being made? is there any silver lining? >> frankly no, there isn't. >> we could have 16 ipo's put up the full screen and if that happens, if we get 16, it will be the biggest since december 2006, the two big ones, laquinta, mid scale hotels

almost evenly split, the huge one is allyfinancial they have expanded now. this is very interesting. fast friday is the big day. there will be 7 deals on friday. this is the second chinese ipo on the year.

all of them talking about going public soon. put that back up. i just want to point out, you can see the ipo prices going down. the ipo pricing of the biggest ipo's are about 12% off of the peak they had weeks ago.

big things there. little food mixed in. straight ahead it's been a bit of a rough ride here. especially the nasdaq who better to help you navigate through.

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the nasdaq composite led the way down again. it is the do that is pulling down the hardest. people just go in and blindly buy the block.

there was a flight to safety in what we saw but it really wasn't there. like goldilocks they weren't. less than a full college education. that's just a structural difference in it.

how much can we stay in the range. 2011 ended qe 2 they fell 23%. he thought the impact was equivalent to a cut in rates

of.75 of a point. if the fact is true of qe 3 we have raised rates. even as the fed tapers. the market is believing that the market is not going to catch fire. that was friday morning and they spiked out. and they got to 1897.

when they convenient to the market they pulled back to test the earlier low at just about 11:00 when nasdaq broke. we have a lot to watch here. yes, we are back on. >> tick by tick analysis of the market. it is the end of an era for the world's most notorious hedge fund. it was the end of an era.

it is managing about $9 million. mainly long short which will be in a pair of funds.72. but also quantitativ e*trading. cohen's own the investments will be held as well. >> forced to pay a total of $1.8 billion. march led to give backs and the main fund is up in the high single digits. after this dramatic change,

which i'm told he would like to settle. settlement issues have been tough on some of the fund's portfolio managers. some have been trying to stay onboard by issuing two year employment contracts. we'll see how that goes. interesting. thank you so much. kate kelly at hq. >> let's get a flash on wwe. >> it is taking a beating. take a look at those shares. back over to you. >> thank you very much.

um next on the program, in tell spiking today after signs of strong corporate -- is that a signal to buy. we'll talk about that after this break. break. whoyour boss?rk for? yourself? your parents? your family? at baird, what matters most to you... matters most to us. as an employee owned firm, our financial advisors have the freedom and resources to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird.

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circles. >> they have been talking circles. he all ways feels that he is the under dog. like the story book ceo tale. >> amazon's introducing a new device it is piloting with fresh customers. look at this. it is fun to use. you never have to worry about getting something you need. with dash you can order over 500,000 items. guitar strings. strawberry yogurt. >> apples. domestic bliss. >> it is linked directly to user accounts and allows you to scan or say the items you wish to

replentish items in the pantry. >> it looks to me like a check out counter. >> many people believe that it is an opportunity to just get people to buy things. >> the jury is still out whether they can break into the grocery business. >> they did roll out the trials closer to their home in the tacoma area. the people expect that they will start to bring it out nationwide. they take their time until they

think they have it right. why can't you write a shopping list or something. >> pen and pad what are you kidding? >> i would like to see what is in your pantry simon. >> the dow is down almost triple digits here. after the nasdaq managed to find some legs and come off it's lows of the section. what is interesting is we have seen it overnight in asia.

we have the fed minutes out this week. that earning season is going to be key. do you have enough to maintain earnings theury is out. >> and it is out on both of those. >> are you saying time will tell? >> when has an earning's season not been important? >> 1% growth when we were supposed to be firing on all cylinders by this time? surely that raises concerns. >> why are you calling me shirley? >> we have funny guys on the set today. >> as you can see nasdaq all in the red. coming up, traditional auction houses struggle. stock down 20% this year a loan.

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discovery communications trying to turn live events into a viable diz. the company recently announced a series of events to draw people to their tv events in realtime. good to have you. good morning. >> good morning. we have been on tv for 15 years. and discovery launched this network called velocity and

discovery has been doing shows that center around the cars "fast and loud" being one of them. barrette jackson will be one of them and weave all of this together. our goal is to branch out in car collecting. >> you can point to half a dozen shows that have tried to capitalize on that passion and interest. what is a real car auction like. >> i think our auctions are really about the lifestyle of collecting cars. you know cars over the long hall have been great investments but there is also that passion and the passion that happens when you have thousands of like type minded people all coming together to share their

enthusiasm for the collector cars and the passion for what the americana and the cars enti world. >> mr. jackson, will there be a mechani mechani mechanism where by people watching at home can take part in it. >> sorry. i lost the feed. >> are you back with us? can you hear us now? >> absolutely. >> i wondered for those sitting at home, can they take part in the car auctions? is there a mechanism to do that? >> yes. the rest of this year, we're still on fox. this weekend, we are conducting an auction in florida on foxsports1 and fox sports 2 and national geographic. they can also follow us at our website and we stream the auction at barrett-jackson.com and we just came off the scottsdale auction where we did

$113 million in sales. this is a very popular part of the market and collectibles as a whole. people can follow us and what the prices are. the prices have been going up. >> to that point, i kind of like looking at these auctions, pockets of excess, alternative assets. what do you see in terms of investors going into your cars and what does demand look like right now? sn>> demand is as strong as it' ever been. people buying blue chip cars. across all segments, muscle cars or european sports cars, we just sold a gold wing in scottsdale for over $2 million. we sold several cars over the $2 million mark. we sold an american built '67 american build corvette for $3.85 million. people are really investing in what they grew up with and what

are the pinnacles of each different segment of the market. >> i talked to a couple of gus,s they've been able to buy cars they wished they had when they were 18 years old. it's 30 years after the fact. we covered ferraris listed for the past couple of years. do you think that's showing any signs of getting tired at all? >> it's a smaller market, the high end ferrari market. it has definitely taken a big run. there's been a lot of people, journalists in our world wondering, is that over? was that too much of a hype? i don't know if you will see the escalation like we have seen. i don't think you will see a big sell-off either because most of the people buying the cars don't need to sell them. i do not see a lot of people leveraging themselves to buy cars. people are buying still with their hearts and they're buying

the best. >> craig, we can't wait. congratulations on the deal, once again, craig jackson, chairman and ceo of the barrett-jackson auto company. maybe we'll do a showdown there at some point. discovery and velocity the exclusive home of the auction. >> in 2015, still on fox the rest of this year. >> thank you. >> s&p is back to 1855. looks like this is the way the morning and afternoon may go. >> to the point making earlier, the stress is not just on the nasdaq, broad-based of anything coming on the dow. amazon is testing a thin wand-like device called the amazon dash. it will allow select customers to scan products in their cub boards or microphone to gradually add groceries to their amazon fresh list. we're asking what's the ultimate potential for amazon's magic wands. tweet us and we'll read some of

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"squawk" on the tweet. amazon is testing a wand that will scan your groceries and add them to your grocery list on amazon fresh. what's the ultimate purpose of all this and the magic wand? barry writes the ultimate purpose is it will be able to cook what i order and the drone delivers it on my schedule. i see a potential for a large food bill after the 2-year-old gets ahold of that wand. it will be an interesting afternoon. >> u.s. dollar under some pressure. the jobs report and the treasury yield not getting support and what will it tell us later in the week and what will the guidance of major companies tell us especially after friday.

>> do you think it will have a turnaround because we had yellin. >> and expectation to the more hawkish tone or expectation whether the interest rates will rise sooner or that six month time is out of context. >> we were reminded ben bernanke once said qe was cutting interest rates by 75 basis points and therefore the taper may effectively be adding back 75 basis points. >> he's attributing the move in the biotech and momentums to that quantitative easing. it all ties back together. >> fred hickey over the weekend -- yeah, a lot of people have that argument. we'll see if it holds up. for you guys just joining us, here's what you missed. welcome to "squawk on the street." here's what's happened so far. >> procter & gamble races its

dividends 7%. if you're in these stocks, i think warren buffet likes it. i think this is a profit market. >> if you're in pharma, you need to either pursue a tax diversion on your own to compete. the other theme is diversification and acquire as many products as you can. >> i want to own companies that are going to grow and have bottom lines that will grow, not just pie in the sky evaluations and bring multiples. at some points rates will be back up and then you want to be with companies growing >> do you think people who own stock in lands end hang on to it? do you like the business? >> can you spell the word run? i think they should run and sell. sell.

>> welcome back to "squawk on the street." 11:00 a.m. on wall street, 8:00 a.m. out west. we're watching a lot of red on the screen. nasdaq crawling back after the drastic dips we saw last weekend on friday. even the lows. dow continues to fall down 100. is it any kind of buying opportunity. meanwhile, the battle for your living room, how new is it? set top boxes, high-tech remotes, all players and different and making a lot of movement this morning. fresh take on grocery delivery and the way to shop at home. amazon breaking new rules again, will it pay off? >> a pioneer investment takes another company to the nasdaq, the chairman of american realty capital will join us this hour. >> a cnbc contributor, jon fo t fortt. good morning to you. is this a good buying opportunity after the nad dropped friday led by facebook

and netflix. we have seen yelp and stocks continue to extend their losses into this morning. cramer's point was he wouldn't be afraid to take a flyer on one high flyer and be prepared to be wrong tomorrow. in this level, technically, some say they're getting close. >> if this was 2000, you would say they're bad companies and not coming back. you look at google or facebook, almost at the lowest levels it's had in a very long time. you have to look at these on a company by company basis, do the homework and decide which ones you want to be for the long h l haul. >> this is confusing, zillow, twitter, zynga, f5, also a lot of momentum names down. we have earnings next week and tuesday we have intel, yahoo!

google and sandisk. i will be watching in particular intel because of what it says about pcs and servers. google for the advertising market in general and enterprise markets where they've been struggling. what they say about the second half is going to be really important for other companies in the sector. we've seen a lot of money moving from momentum names into ciscos and intels. microsoft, if they don't sound relatively bullish in the last half -- >> are they growing the user base? are the cores enough to justify the base? they should be making money and if they aren't, is the marketing experience credible? that is the three prong aspect for momentum names. >> that is especially true for these companies and a lot of focus whether it can grow again and whether that justice the valuation. do you think there is a separation between your old line tech and your new line tech and

how much give companies are willing to offer? >> i read the hp article and cost-efficiently. pc sales are not as bad as people think. pc sales are still needed incorporations. >> corporate pc where? we can't tell you exactly where but it's coming. >> certainly, you want to see revenue growth for momentum names but doesn't say what multiple to put on forward. for the bigger tax, where is the growth going to come from not just product-wise but grey gaffgaff -- geographically. if there's pressure on servers, if people aren't buying enterprise software at the rate they need, that could be a problem at least for the next two quarters. based on sentiment, hard to know how the market will take that. >> art cache the last half hour said it's hard to know where the

normal in biotech is going and kentucki qesque eq esq e ending and it will be interesting to see what these real numbers are. meanwhile, a story we broke over the weekend. wall street is willing to give money to these start-ups no matter how profitable or unprofitable at this point. money is cheap and now mobile payments companies square has sured secured a new revolving credit facility. the number i'm hearing $200 million for the credit facility. morgan led the deal and bark clays and i'm told it was inked over the weekend, recent investments in the range of $5 billion. we reported the dropbox did something similar to this a couple weeks ago. wall street is extending an olive branch and wants to give you money and rates are low, why wouldn't you take it. >> it's who gets the ipo.

you get the credit facility by the bank and the market says it will take you public you have the credit line to buff it, all the spending you have to get the growth and allow you to go public. this is very typical in companies willing to go out. >> this is a company in an interesting market getting a lot of insight from wall street as well as against it. you have david vinnier and sara friar, cfo of square who has experienced goldman sachs. but they are challenging the traditional challenge of wall street. >> it does. it makes sense to take out a home equity line. you never know how long they can use their stock as currency after they go public even. why not. >> they have a good toehold on retail, too. they announced their partnership. looking for a big broad national brand in a lot of locations and

coo, you could do worse than schultz. >> especially when these companies are high flyers, looking for credibility. inking something like this is the sign wall street believes you have potential to be viable. >> and square will process $30 billion this year. that credit facility could be used to reduce rates, put more hardware in the channel for the processing unit. this is not a cheap business, and if the window closes and they can't go public they will be happy to have the $100 million. >> it will basically sit around for a rainy day, if they want to use it for growth or refinance other stuff they will start paying a higher rate when they touch it. for a company 5 years old has this in place, that's a good sign. >> maybe that's why visa is down. >> they have a partnership. and amazon making another

move to insure you never have to leave your home. the company has released another piece of hardware to encourage you to make purchases via amazon.com. the product is a small wand, bar code connector and scanner for ordering groceries on the go. here's this video they released for that product. >> the scanner is really fun to use. you never have to worry about being out of something you need. with amazon dash you can order over 500,000 items. >> guitar strings. >> strawberry yogurt. >> apples. >> what do you think? >> i literally thought it was a parody video. i thought i was late to april fool's. your mobile phone has this functionality. jeff king is the king of products to market services. this is a marketing commercial for amazon fresh. >> you give this thing away?

>> i'm sure. >> i think this is brilliant. this goes to the amazon fresh customer already paying the 250 to be a part of that. seems to be targeted specifically to a caregiver, often a mom who might not have their phone in a pocket at all times during the day, maybe trying to watch a kid, hands dirty in the kitchen, a little more robust. maybe this pushes out the famous amazon phone a little longer. it satisfies the need with wifi at home. this is good. >> i think it is a brilliant marketing campaign and jeff b s bez bezos can produce anything at a great price. if i was fresh direct on the east coast i would be trying to get one of these wands and do the same thing and show competition. >> you're asking yourself why you didn't do it in the first place. >> yes. but you didn't do it because it

can all be built into the app. >> we saw it working on fire tv as well. i think there's a lot more than marketing to this. they're trying to keep the order flow going to the service, increase loyalty. >> the debate is does this make the grocery store the showroom. we talked about showrooming, not a new phenomenon. when you have goods cheap to start with, they are oftentimes perishable, do you really want to comparison shop for a wrong time? >> i think shopping for groceries is such a halls, especially for two parents in a household. that web van was a good deal and the infrastructure was not in place. it makes sense. we could see produce showroom and why not? it's cheaper and convenient. >> who gets to take home what's in the showroom? >> this is a showroom in your home and works on the wifi network. this is for things that don't

have bar codes and amazon wants to keep things going constantly and you can't scan an apple. >> it is this morning's "squawk on the street," what's the ultimate potential of amazon's magic wand? tweet your responses. new players in the tv game. yahoo! looking and netflix taking a page from amazon. how new is it? details coming up next. ♪ i know a thing about an ira ♪ and i got the tools ♪ to do it my way ♪ i got a lock on equities ♪ that's why i'm type e ♪ ♪ that's why i'm tyyyyype eeeee, ♪ ♪ i can do it all from my mobile phone ♪ ♪ that's why i'm tyyyyype eeeee, ♪ ♪ if i need some help i'm not alone ♪

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take a look at the consumer discretionary system. what's been behind it >> it's been a tough day for the discretionary stock. car max list iing lower sales. there's toy maker mattel and d.r. horton and harman international and i michael kors, with the worst performing in the economy and consumer discretionary spending makes up about 70% of gdp. >> thanks so much. in the trend of netflix being everything to everybody. the company close to ordering four web series. and the verge has google plans for android tv answer the amazon fire tv, apple tv and roku.

le let's handle amazon first. >> i don't get it because of yahoo!'s distribution, they're strong on the web but seems like a lot of growth in tv watching they're trying to go is to a set top box to the living room. yahoo! not as strong there. they have to do a deal with somebody get more on the x-box and apple tv somewhere to get money to monetize it. how do you monetize it? do you put commercials in the actual program? not a lot of people doing that. are you going to do a subscription service? >> i totally get this and think it is the first thing they have done in a long time that makes sense. they are a media company. it makes more sense than trying to beat google in a search. and they can compete directly against netflix. >> they will show them on the home page?

>> yahoo! is the biggest adverti advertisiing home page, people pay millions of dollars and they can get that and it's the bu business they should be in. in the pre-mayer days, yahoo! approached them and whether they condition do it the right way >> the yahoo! home link is the biggest flood of traffic. anything nay get on the home page. if they promo this they will get lots of views. >> judging from how well they've done previously will this be a success? >> news and short form is different than what we're talking about here, long form. a lot of people trying to do short form on news. that's hard to get eyeballs on the web. we have seen an upswing in demand and not enough people. >> i don't know how much growth

is there in viewing this sort of thing is on a pc. that's where their footprint is and it will cost them to build it in the mobile and living room. >> any can get on the fire tv box. apple a little bit harder. any can get on roku. you give them your icon, skim your web page and boom, it's on the tv set. >> mark leverwich on the list of things not hot, not not, just me. number two, yahoo! is in talks. >> just sell some ads. so easier, they have a giant audience and unmeh to do this deal >> second to trail mix. >> they always have that. when we come back, winter is coming, actually, it's hopefully over in new york. don't tell that to the game of throne fans who could not stream the season last night. what that means for them going

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game of "game of thrones" f weren't able to watch it because of people logging on at the same time. todd spangler is a digital editor with "variety" joins us to talk about it. good morning to you. >> good morning. >> is this a problem or almost the kind of problem you'd like to have. >> yes. a good problem to have but not a good thing for hbo. they're kinds of a victim of their open success in promoting this new way to watch their original programming. it's become too popular and they can't handle the demand for

these high profile event series. >> we talked about how this was not the first time and the finale was frustrating for some. at what point do subs exit and potential sub say maybe i won't get it, the marginal decision whether to subscribe or not? >> i think this is a hiccup. an issue of peak capacity. hbo revolved the issue within about an hour and a half. i think it's a hiccup. i think it's growing pains here as hbo tries to adjust to how popular this service has proven to be. >> tom, a lot of times you can't predict growing pains and it is an embarrassment of riches and in some ways a good thing. how would a company prevent this from happening in the future? do you limit the number of people who can get on or make sure for one night only you have more band width to offer. how do you do this?

>> i'm not sure the issue was band width per se. it may have been something internal to the system where it couldn't process the number of people trying to log in at the same time. it's technically achievable. they should be able to fix the issues they had. it points to the fact that this is a popular way to get these shows. i should point out on tv you can watch the premiere. >> of course,. >> no problems there. that's undoubtedly how most game of thrown throne fans chose to the show. it's that initial crush of demand that was the problem. >> or listen to your co-worker spoil it for you the next day at the office. that's a different story. their tweets are hilarious, looks like there's trouble in the realm. having trouble, send a raven.

they did have a sense of humor about it. but it did remind you have what was said about passwords and didn't mind sharing passwords and do you think he still stands by that view a password is interchangeable? >> i thought the trouble in the realm thing was a little too cutesy for this issue. especially because jeff from timewarnered a an investor conference said they would make a priority making sure hbo-go didn't have trouble delivering what the fans wanted. it is a minor embarrassment here especially since they recently had trouble and said they would work on fixing it and they didn't. >> we had trouble at home. try again tonight. can't wait to see the beginning of season 4. todd, thanks a lot. todd spangler, digital editor at "variety." let's send it to don for a

market flash. >> a tale of two stocks on te dow heading opposite directions. proctor and gamble bucking today's downward trend raising the different vend to 64 cents a share. proctor and gamble shares up. and positive trial results against breast cancer came out. seems investors were hoping for better results from the study and they are trading down. back to you. >> just a few minutes in the trading day across the pond and have closing details on that impact on u.s. markets. we will tell you what you need to know today, down on the market. we'll be right back. [ male announcer ] how can power consumption in china,

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of the day. dow down 115 and s&p, down 11 and nasdaq down 27. and let's get to the strategists as we get closer to the european close, what does it mean for today? let's keep this in privilege. s&p made a new high last week and a few days off the high. that observation is important in the context of what we're talking about.

what i mean by that is everyone is focused on the fire s and those that endured and to look at what the majority focuses on, they're still at or for the record highs. >> do you think this is related to qe or beginning of the taper some have argued today? >> we have been out front saying tapering is not tightening. i stand by that. at the same time, it would be intellectually dis honehonest n observe janet yellin's press conference coincided with some of this move. it maybe didn't cause -- wasn't the sole cause. you mean the six month comment. >> yes. her first press conference, i disagreed with the market interpretation. i don't think she meant six months and you called argue that. there is this deal like the taper tantrum, some is being

taken off the table and some down 20, 25% from their highs, they've outperformed over the last years so hard to deny there isn't some profit taking going on. >> we will have the first quarter earnings out next week. do you think it will be relatively weak given growth and everything we've seen, is that one of the reasons behind the sell jo or is that a compounding effect once we start seeing the numbers come out? >> i disagree. we've known qe-1 would be certainly since the day of the sto storm. >> which one? >> it's been several months now we've known anything that's gone wrong in q-1 ill be blamed on the weather. and 2, 2 1/4 % up. we know it's not good. it would be difficult for me to argue the last four days worth of selling negates the fact we have known about this the last four or five weeks.

>> as someone i would argue is relatively cautious throughout the bull market or last 12 months, when do you get interested in a short term move into stocks? >> we've been long. i wouldn't disagree with the word cautious. as one of my favorite clients likes to say, there's only two positions, long and short. we've generally been long. there are still macro observations and that is how we look at the investing landscape worth being fearful of. right now the level of the average p&e in the stock market. we're certainly not screaming bulls. our position in the last 24 months has generally been you have to be long and we mayintai that position now. >> good to get your guidance. dan greenhouse at btig. with all that, we announce the european close. >> look at the reds on the screen, germany down almost 2%. a double whammy j down at the beginning because of what wall

street did friday and today. spanish production very healthy. reuters is reporting this week greece might actually return to the public market selling 3 billion euros of debt. in general, it is a broad-based move down although you have seen some areas of the market that have done really well this year and outperformed this year. i mention the uk house builders. we do have some builders in paris. and they have been explaining the deal to create the largest cement maker in the world and going to sell off $7 billion of assets. 15 separate sets of regulators. the stock of both of those players has done relatively well. one is up 17%.

in paris, the cable maker has been celebrating the fact he won the vending war for assets, $19 billion in all. he was pitted against martin as he becomes victorious in creating a fourth quadruple player in the paris market. you can see some of the rivals in that market, if you go back to where we were, they are in negative territory. and they failed to win the bidding process. >> simon hobbs, thank you. >> let's get to where we were on friday to sheila at the nasdaq. >> hey, carl. we're just a few hours into this session and a volatile one. at one point the nasdaq was in the green and it has picked up, down about.4. here's the silver lining. we are seeing some upside

momentum inspectors beaten up the most. via tech has been up almost 2% now up about 1% here. we do have big names all in the green and traders like to see the action. have to look at momentum stocks. we are seeing buying in the group. this is a sector beat down quite a bit. n netflix, facebook showing green and you have those like priceline. intel is a big winner today, up almost 2% after that upgrade with pacific crest. here's what traders are telling me about today's action. yes, they like the fact we're seeing buying and green in these sectors. the big question right now, is this a trade or a trend? right now, what we have seen so far, not enough confirmation this is a bounce back, these names are rallying again. it could be a big trade.

that's what traders are watching for if you hang on to these gains. you look at the anatomy of nasdaq, it's been a tough one, down almost 6%, hitting a 14 high in early march. all these names, the biotech names are seeing a little bit of green and if you look at the price action from hitting 52 week highs this week, we're in bear market territory. is this a trade or trend? that's what traders will be watching for today. >> thank you, sheila. an important distinction to make and we will keep up with you to keep up with the news there. uptown at the nasdaq. >> northwestern capital and shares and its ceo, that interview coming up next. . with all the opinions about stocks out there,

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medical office buildings. where do you see the growth in this industry and why does that make now the right time to take this company public? >> the health care is extremely exciting because we see it in the 65-year-old age group as we see 11,000 new 65 year-olds everyday, but also now for the first time, the population of 85 years old is actually growing. as we continue to see the mna activity and health care providers looking for ways to redeploy capital, they're looking to jetson some real estate in long term transactions where they can redeploy that capital. being a public read today, the markets are right and trading very well and being diversified in medical office, senior assisted living and acute care and post acute care, we're

playing in that space we really see the growth for not just years to come but many decades to come. >> it is up about 9% this year. had a rough 2013 but investors are looking for heavy dividend income plays like the reits provides. when you look going forward and your stock today, you see the stock down 5%. you guys have another ipo in a couple weeks. is the investor sentiment going in the other direction now? >> no. today was -- this is a listing so not an ipo. we came out, the first trade was around 10:50 even though the opening kicker was at 11. it was a listing, not an ipo. we're trade iing on par for they and we're seeing very good volume coming in. as volume is building in the stork and investors getting behind it we're seeing the book build and good volume.

it is starting to tighten up. that's the kind of thing you look for in the first day of trading. >> nicklas, you talk about how there is a shift going on between hospitals that cost a lot for the outpatient clinics. is there still room for hospital play or always things not hospital related? >> no. absolutely. the hospitals are very active. we're also seeing senior assisted living as a growing area. our focus has been on newer assets. this is different than reits the last decade. it's about 11 years old and we have good leverage capacity on our balance sheet of total enterprise value of $3 billion. we see the opportunity with the population aging. the other thing that's really interesting, we're primarily focused on private pay. we're not highly impacted by obamacare. there's a huge market -- only a very small percentage of health

care assets are owned by reits or institutions. most are still in the hospitals and senior assisted living company's hands. there's a huge market potential of trillions of dollars of real estate looking for a long term home. i think the public reits really give it just that. this is not a short term play, this is a play that will last for decades. >> nicklas, you have another reit that will be trading also at the nasdaq in a couple weeks. you'll have a busy april. thank you for joining us on squawk "squawk on the street" this morning. >> thank you. >> over to don. >> hey. check out what's happening with credit suisse, switzerland's largest bank and helping americans avoid paying taxes. this comes from the manager, for docume documents and examining whether the bank lied to new york authorities creating tax

shelters. you can read about it in reuters. when we come back, racing kicks off with red, yellow and, of course, green. the ceo of formula e bringing race cars to a place near you.

speed racers start your all electric engines because a formula e could be coming soon to you. powered only by electricity kicks off in beijing this september with confirmed races in miami next year. but can formula e duplicate the success of formula one. the ceo of formula e, great to have you. we were just talking about this off-camera. you have ten cities? >> ten cities, beijing, london and south america, all over the place. >> the rules for vehicles is all electric? >> all electric. we want to change the thought of people as to electric cars. they thank of them as low. and we want to show them in action. >> how fast can they be? >> very fast, 170 miles an hour,

really really top racing cars. >> you were talking about because the torque is immediate, these things take off like a rocket ship. the battery life is an issue. they can't last as long as a traditional race car. >> exactly. we do this to change the technology on electric cars. we need to really take a view. we are -- i always have this comparison. an old school moment, look where we are today after just 25 years. if nobody had done this we wouldn't have mobile phones today. we want to do the same with electric cars. the technology needs to change. people will not buy electric cars unless they are better. >> what's the dirs betwefferencn racing an electric car to formula 1 cars. >> very similar. those coming from formula 1 cars will join formula e.

>> why would they do it? >> because it's a championship that takes them all around the world with new technology. very competitive and very different. the streets will be tricky, maybe some accidents in the races, very exciting. >> there is one team backed by leonardo dicaprio. i'm wondering how that got off the grounds and how the talks went off the ground. >> it started in new york very very close to here and he's passionate about electric cars and the environment. and it pretends to change for good the environment in the cities. with more electric cars we will have cleaner air. that's what i gave to leonardo dek dicaprio and others. >> and others. do i want to keep the focus on the traditional kind of race? >> this is an interesting

question. we don't position ourselves against the fuel cars. i myself come from the world of racing. i i'm a petro head myself. we think now is the time to change to electric and they can co-exist for a while. probably in 20 years everything will be electric. >> we know electric cars don't make a sound, right? they are silent, so to speak. is the only sound the sound of the tires on the pavement? how does that work? >> actually, we were surprised, they make a cool sound. i don't know if you remember "star wars," that's the kind of sound we want for races. >> the culture of wearing headphones and noise cans lers. >> that will change. we want to talk to the younger target not used to loud racing. they don't want a car, they want an ipad or tablet. we want to go to those.

this is almost a video game on top of a race. >> you have one race here in new york. where is your dream location? >> my dream location in new york would be central park. but it might be a little bit difficult to get permissions for that. we're looking at different alternative locations to show the new york skyline in the back. that would be a dream for us to have a race there. >> you could probably do a rickshaw race? >> what's the purse like for the winner? >> $5 million for the drivers, not not a bad purse. >> if i'm not here tomorrow you know where i'm at. >> we can't wait. hope you come to new york. a ala alahandro, ceo of formula e. the company announce iing lr numbe numbers, what's with the stock slide? good morning.

>> good morning. wwe getting smacked down today! the stock falling about 21% this morning after they hosted the mega event wrestle mania 30 just last night. that broke the record as the highest grossing event ever at the new orleans superdome. the fifth straight year the event has set such a record at a host venue. this morning, the company releasing its first subscriber numbers for the ww "e! network," the all digital new stream iing service that allows fans tobey pass paid-per-view for about $9.99 a month. since it launched in late february, they have pulled in nearly 60070,000 subscribers. that's already two-thirds of the way to the stated goal by the end of 2014. 1 million is the number the company says it needs for the service to be profitable. all this sounds like a victory,

right? why is the stock falling? investors wanted even higher digital subscription numbers. you look at this chart from when the streaming service was announced until now, you see the rub-up in the stock and high expectations. they had more than tripled before today and today's low is probably from profit taking. back to you. >> thanks so much for that, morgan in l.a. e-commerce giant amazon is test ing amazon dash where they can scan products or verbally order them by a microphone. we're asking what's the ultimate potential of amazon's wand? tweet us. we'll answer some questions after this break.

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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. welcome back to "squawk on the street". the company is taking a hit.

an fda advisory panel recommended approving the treatment. the stock is up 60% over the past year but down 12% trading toda today. >> speaking of being down, a lot of techs had a rough day the last few weeks and days. nasdaq tried to find gum shun this morning and didn't last long. >> patty and i were back at headquarters trying to figure out when this started. turns out there's more to it than just yellin. on the 14th of march when the crimea cessation vote was coming up, look when that stock drops off on facebook. look at that time period, not all the exact same date. let's cycle through. pandora, linked in, amazon, trip advisor, one week period the 14th to the 21st started to drop

off. on the other hand, during that same period a lot of bigger t t texts popped the other way bigger techs popped the other way. they all turned around right in that same one week period. you had crimea cessation on the 14th and yellin on the 19th and quad on the end of that week. >> i would say the eyes of march but that is almost ridiculous, right? >> that exact same period you have these groups of stocks heading in opposite directions. >> interesting, a couple months ago we had emerging markets blaming the feds and sell-off in emerging markets and sell-offs in riskier asset classes. now we're saying the u.s. tech sell-off is cause iining a sell in emerging markets ji the tail wagging the dog. and a lot of people would call

the cessation vote affecting stocks. >> most important in a lot of cases it's the guidance not just for the coming quarter but also whether they keep their targets for the full jeer, what thyear,y about the back half and have a lot of optimism. >> and that is bumping up against 12 year highs, 14 year highs, they need to deliver numbers or that is at risk. >> that's what i'm watching, names like microsoft still managing to stay around 40 bucks, which is really high for that stock, how optimistic are they of the back half, maybe this version of office is lifting their spirits. >> and offsettingsome of the negative segment. up grading pandora and netflix and yelp and intel, we have a

lot of moves this monday morning. is this monday morning quarterbacking or something coming in front of bigger announcements or moves. do you think they make a difference? >> i was just looking at pandora, some people say trading pandora got that because it spiked momentarily and then got out of bed, it changed as this stock is prone to do. we see other numbers come in and people paint a fuller picture what's going on in the back half maybe we'll see some stabilizing. >> thanks, jon. e-commerce giant amazon testing a thin wand-like device called dash. it allows you to go to your pantry, scan a product in your pantry or into the microphone and magically add the groceries to your amazon fresh list. what's the ultimate potential of amazon's magic wand.

>> wand, now, it can be like harry potter fighting the grocery list. >> wand will immigrate and crush other business. and it's something you can lose behind the couch. if you accidentally place your wand by a reflective surface, do you end up with a dozen more wands? >> what do you think of this gift by bay zezos. >> i think it's driving impulse purchases of food and other items. they want to make these really loyal and profitable customers and this is the type of device to do it. >> amazon fresh is just in a couple communities. do you think this could be popular in the heartland? >> i think it could be. i think this is a test case.

it is only in a couple cities, the only people who can use it. you can't just sign up and get this. you sign up and get approved for it. this is like a set top box. >> they always give us good stuff to talk about. the market is giving us stuff, down 127. it will be an interesting afternoon. >> the debate whether this business we're continually seeing in the nasdaq spreads to other areas of the market and you look at whether it's a real possibility it happens or contained. what do you guys think? >> i don't think it's a coincidence, as jon mentioned, it came after crimea and yellin and michael lewis and earnings expectations are pretty low. >> they will all play a great role. thanks so much. welcome to the halftime show. after today's carnage what happens to the stocks once the