♪ this is ourselves ♪ under pressure good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. if you are just checking in on the markets after yesterday's sell-off, let's get you up to speed. take a look at the futures at this hour. yesterday you saw the dow down by 266 points. the nasdaq was down by 3.1%. you'll see that the u.s. equity futures are indicated slightly higher at least for both the dow and the s&p futures. dow indicated up by less than 20 points, s&p 500 futures indicated up by less than 2 points. nasdaq looks like they're down about 1 point. >> in europe, the major averages are selling off following what happened here yesterday. in germany, dax is down by 1.4%, the ftse off by 1.2% and the cac in france off by 1% as well. in asia overnight, the nikkei tumbled more than 2%, closing below the 14,000 point level.

right there at 13,960. this started thursday. the nasdaq felt the worst of it, down by 3%, closing at 4054, the biggest one-day decline since 2011. the nasdaq is down 7% from the recent high on march 5th. it's down by 2.6% for the year. for the s&p 500, that index down 2% for its biggest drop in two months. we're below where we ended the year. so you're looking right now 1833 after yesterday's declines. its first close below it's 50-day moving average since february 10th. the index is flat for the year to essentially slightly down. >> it's down 2%. >> that index, the dow, dropped 266 points closing at 16,170, a decline of 1.6%.

the dow is on pace for its first weekly drop in four weeks. for the year, the dow is down by 1.8%. and in yesterday's sell-off, only two dow components finished higher, at&t and mcdonald's. >> if it was 3% on the dow, it would be 500 points which sounds like a lot. 500 was the '87 crash but it was from 2000. it wouldn't be the end of the world but it would get your attention. we said it started yesterday. it started last friday. remember why it started? as the ten-year started rallying. and yields started falling. and i thought, do you remember we sat here yesterday -- >> we were debating. >> no we weren't. we we agreeing. we were watching to see hawkish or dovish? the market went up 200 points when they said they're worried about employee inflation. where we said i would take a low inflation worry to say we're not going to do 3% and did you see

the ten-year got almost below 2.6 yesterday. this is what i think. just in a nutshell, that the fed's out of bullets. they're getting out no matter what. so we're on our own in terms of the economy. it's got to be the economy. i no longer think that things -- bad news -- i no longer think bad news can be good news because the fed will stay longer. we'll live or die based on the economy and i think there are signs. i want to -- i saw the santelli report yesterday in the 11. i thought he was nailing it. >> he was on fire. >> saying the same thing. what's happening. you get a yield curve this flat and everybody says there's no way there's anything wrong. you can't be predicting a recession because there's nothing in the cards to indicate a recession. we never know whether there's a slowdown coming. >> i didn't see the santelli report yesterday but i saw him a couple weeks ago explaining why

the yield curve was the way it was. steve used to do things with the white board. i want him to do one of those for us. >> we may get some type of answer about whether it's just the hangover from 2008 and eventually we come out of it or whether all along it's been the government sort of in the way of -- if we never get above 2%, andrew, you'll have to admit that a lot of these government -- that regulations and higher taxes and corporatism, all these things are starting to affect the economy. >> we knew there would be a point where the training wheels would have to come off. >> these are small moves. >> it could be possibly things until you do see the economy. >> most of the big hedge funds over the past week have been slaughtered. they also all remain long. >> hedge funds are supposed to be hedged. >> i know they're supposed to be hedged but most of these guys -- >> he was saying they're leveraged.

>> they're all playing through the pain. i think the prevailing wisdom is that this is a short-term blip. >> the real pain wasn't in at&t with the dividend. it was in facebook. >> right. >> or biotech. i described it, i was talking to some of the producers yesterday, i said this story. everybody in the world will be driving a tesla someday, supposedly, until things come home to roost. until you say wow, is that stock "a" trading at 80 times revenue? how do stocks trade at 80 times revenue. i want to talk about sebelius. it's coming up. i'm thinking about it and then i -- a lot of times "the journal" crystallizes what my thoughts were. if it was a big success, the big victory lap they took, we did it, 7.5 million, she should be -- she did it.

she should be riding high right now. but they don't want to do it that way. this is the new obamacare now and she's gone. we have a new person. we have 7.5 million. this is not accountability. this is getting her out of the way so you don't think of her anymore going into the november election. it's a new obamacare. it's working now, it's perfect, it's great. now we have a new person. >> we have a new person. >> i think she should have replaced -- she's leaving. i think colbert should replace her. >> colbert. >> why can't i be a right wing asshole and call him colbert? he makes 10, $15 million a year imitating o'riley. why can't i be him and mispronounce his name? >> i was surprised they didn't pick "daily show." >> that would have been a much -- this is going to be interesting. how do you know the guy? >> you want to do this now?

>> wait a second. does anyone know if this guy can be a normal person and interview people and have fun? >> i know him and he's hilarious. >> i know him and he's hilarious, because you say so. >> you asked, i'm answering. what do you want? >> two snarks don't make a right. i'm not going to say anything about this guy. you saw what rush limbaugh said. >> right. i saw that line. >> i know you think the entire country means nothing. this guy will only appeal to a certain -- do you know who the best news is for? nbc. jimmy fallon who has a different brand of humor which is not quite as snarky. i read that and thought, wow, nbc is going to be number one for the next 50 years. >> colbert's contract is up. it was always in time with letterman. if you think about it, cbs and "the daily show" -- or rather

comedy central is viacom properties. if you are effectively redstone up here, you have to -- jon stewart is -- >> we'll take the lesser star because we don't want to destroy -- >> yes, absolutely. >> comedy central? >> jon stewart is comedy central. >> but if you do a really good job, you should get the next job. >> he gets paid more money than god. i'm not sure. he's not upset about it at all. >> it's a fraction of the potential audience you'd get on cbs. he does well with 18 to 24, which is where your mind is most of time. the major concerns hanging over the markets, joining us now, david joy, chief market strategist at ama mameriprise financial. >> i don't think so. i think what we saw yesterday is still in the realm of what i'll call collateral damage for the

broader market. that is very much localized still in the biotech internet, these momentum plays that are washing out. the one thing that makes me a little bit concerned is that we did break through the 50-day moving average. i'm not willing to say the downdraft for the rest of the s&p is over yet. i don't think this is the start of a broader connection. i will agree with what we were saying earlier. we're on our own now but we're in a limbo period where we're not getting clean data from the first quarter. it's too early to get clean data from april yet. so we're in this void where all we're focused on is what we know will be a bad earnings season. i think the market has very little to support it. >> you have an answer why interest rate -- why is the ten-year not at 3.5%? didn't you think it would go to 3.5%?

>> i still think it's going to go to 3.25%. >> by the end of the year? why? >> the economy is stronger. >> that's why the ten-year -- the yield is going down because the economy is stronger than people think? >> no. >> why is the ten-year going down in yield? >> well, i think the ten-year is simply saying, look, there's no empirical evidence of my view that the economy is stronger, so why shouldn't i maybe hide out a little bit if i'm nervous about stocks? where else are you going to go? you go to the treasury market and hide out for a little while. i think that's all this is. i will say in my career, the bond market has always been a very good leading indicator of what's gone on. i'm trying to figure out whether or not that's what it's telling me. or is this more of a mirror image of what's going on? >> you're wavering, hearing doubt. >> there's always doubt. >> the bond market is bigger than anything it's also the canary in the coal mine a lot of

times. it's global yields, too. you have to pay attention to it, right? >> absolutely. there's always doubt. we don't know what's going to happen. i'm willing to bet it's more or less just a mirror image of what's going on in stocks rather than a leading indicator. i think the economy is better than the 2% or so that we got out of the second quarter. i think the second quarter will be above 3. it's too early for us to know that. the one piece of datas with a jobless claims number. the market ignored it. i think once that evidence begins to build up, i think they -- the weight of the evidence will arrest this slide and the market will stabilize. i think we go higher the next couple of quarters. >> it certainly could. that's the way it works. complacency is the enemy of all bull markets. it's not letting us get complacent, i guess. we'll put you down for -- i think we'll do 3% this quarter. >> yes. >> you don't think this is the

beginning of a correction. >> no, i don't. the one thing i'll point to is, look at where the least amount of damage occurred yesterday in the blue chips. it was in the broader averages. it was still really these momentum stocks that were the locust of all of this. stay tuned, at least in the next few days. >> okay. all right, david, thank you. >> thanks. >> we'll talk to other people today, i think. >> you know, that makes a lot of sense, though. >> except that, you know, we have to talk about this as it's happening. we can't get 266 points go by without -- this could be the end of the world. >> it is not the end of the world. >> we need to at least -- >> i put money in each of the kid's college funds yesterday. i put money in each of the kid's college funds yesterday. i felt like this was a buying

opportunity. >> you wanted the ebay guy to be carl icahn. don't you see this is part of the conflict? this is hyperbole. it's cable, sorkin. >> i know, it's tough for my little brain. let's talk politics for a moment. this is a story we were all talking about. health and human services secretary kathleen sebelius has stepped down. burwell has been chosen as her replacement. let's go to john harwood. >> good morning. >> sebelius said she was staying till november. what happened? >> well, look, when they had the crisis with the website last fall and the president was asked about this, you know, who's going to be held accountable? are you going to replace kathleen sebelius, fire kathleen sebelius? he said what i'm focused on right now is getting the website

fixed. he did not rule out a change at the top of that department. now we're seeing that accountability moment from the president. his aides are not saying she was forced out but the writing was on the wall. i think they decided they weren't going to do anything until they got through the enrollment period. it was all hands on deck to fix the website, get people signed up. now that that's happened as joe alluded to, they want to move past this. >> was she kicked out or not? apparently hours before she kicked out she was telling people that she was staying. i don't understand. >> i think she chose the timing of her departure. >> she chose the timing? >> can you really say, though? >> are you going to let me finish? >> no, no, that question is rhetorical that andrew is asking. we know what happened. it was a disaster. >> i'm taking andrew as if he wanted an answer. she chose the timing but it was understood by everybody that he was going to put new leadership

in charge of hhs. it wouldn't make any sense to do that in the middle of your enrollment period. this is a logical time. exactly when after the enrollment period was done that i think was when kathleen sebelius had her choice. it was going to happen anyway. >> management 101. it reminds me of gm and mary barra a little bit. not the way it happened. she's there, the recall wasn't her fault. she can address it and talk about it but it wasn't her fault. the same thing will be with this new budget person that's in there. it wasn't her fault. she can rest on the laurels of hitting the number of 7 million now. and the substance, joe, it was obvious there was a management problem with healthcare.gov. if you have someone like sylvia burwell who is long on

management, she worked at walmart, the clinton foundation and the clinton administration, she's somebody who is as bulletproof as a potential democratic nominee for hhs is going to be. it's not going to be easy to get anybody confirmed. >> that doesn't mean the president will leave at this point, right, john? that's not happen be. it's a joke. >> i take your point. >> i'm channeling stephen colbert again. why not be somebody else? >> somebody else? >> why not be somebody else and make 15 million a year? i just want to see if he can be himself. there are -- >> he says he is going to be himself. >> who is he? i don't know who the other guy is because i haven't watched it. >> i don't either. that will be interesting when watching his show. >> as a homer, jimmy fallon's kicking everyone's butt. i think this is a good sign for him. if cbs wants to go for these

intellectual -- >> i was always a leno person anyway. les knows what he's doing. it's not as important as it used to be. it's much more pragme mefragmen >> jimmy fallon is the closest thing to a tape measure home run that a television network can do. >> both sides can watch it. letterman towards the end, i'm telling you, half the country wouldn't get their channel anywhere near that show based on the political crap you had to hear spewing out. >> who wouldn't go near it? >> half the country. the republicans wouldn't watch letterman. right? >> i don't know what the make-up of his audience is. >> you wouldn't know how a republican feels. that's probably true. anyway -- >> ha, ha, ha. >> there are some rocky months probably ahead with premium increases and all this stuff we're going to see. you don't want her there. she kind of -- she --

>> you could have premium increases but that's not a given. >> you're more than likely going to get her through a senate confirmation hearing. >> it is likely, joe -- it is more likely that things will get better than worse. "a," the website is fixed and when you get through the enrollment period, you have a greater risk pool. >> wait a minute. tobey cosgrove, a guy that was on board with obamacare said 75% to 80% of premiums were going to be above what they were. >> health care premiums always go up. the question is, is there an exceptional spike. >> how many did we lose? what if 6 million lost and 7 million signed up? >> the studies don't point in that direction.

>> what if it's 30% -- 20% young people or 15% young people and the rest are all old, sick people. a lot of things will still come out. >> that's the risk. we have to see what the make-up of the risk pool is. we don't know. the bigger it is, the more likely it is it's de-siene. >> the john, thank you for joining us this morning. >> you bet. much more on the sell-off as we cover various angles. plussing with all those high flight internet stocks that are heading back to earth, we'll talk about those. right after the break, a group that's stepping up the battle over equal pay for women. first, though, check out the futures. more "squawk box" when we come back. right now they're essentially all along the flat line. "squawk box" will be right back. here's your traveler's check. travelers can expect to pay more

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las vegas. in connection with national equal payday, an organization focused on gen y women in the workplace. founder and ceo is joining us on set. >> you're trying to get geny women equally involved. >> the wage gap has been skin the in the united states, if anything, it's gotten worse in the last year. women are losing over $431,000 over the course of their lifetimes due to the wage gap. and even upon graduation, the wage gap is 82 cents to the dollar. coming out of our top institutions in this country. there's an issue, it's not receiving the attention that it needs. we're here to really enjabil millennial and gen y women to

understand how to ask for what they need in their careers. >> i've heard studies that say part of it is, women don't negotiate the same way. they are expected to behave a little differently. they know that. that's why they aren't as aggressive. >> fewer than 7% of women negotiate their salary at any point in their career. there's definitely an opportunity for us to be enabling women to learn how to ask. part of our entire campaign is centered on the fact that there's this asking muscle that needs to be flexed. we need to get our talent comfortable with asking for whatever it is they need, feedback, responsibility, whether it's a different job opportunity and whether it's compensati compensation. >> part of it has to do with women taking off time in the work force to raise kids. that's an issue. they know it's part of it. it's not the entire gap. it doesn't explain all of it. that does explain some of the gap. those are tough decisions. i can think of it about it

myself. i was thinking about what i was going to do, was i going to come back or not. >> we talk about this as well. levo focuses on women in the first ten years of their careers. we start to have these discussions about integrating work and life and understanding how to approach having children. the wage gap becomes more and more distinctive once you get to the point where you're having children. we need to get you to feel comfortable really flexing your asking muscle before this inflection point so that you're set up for success. >> is that telling women to have kids later, that you're not going to be able to have that same impact if you have them earlier? >> we don't recommend -- we don't make decisions or make recommendations regarding family planning. the way we approach this is by enabling women to feel comfortable in whatever decisions they are making and arming them with the negotiation skills and really the community to be able to approach their

employers and get what they need out of their jobs. >> generation y, give it to me. what's the parameters? just so i know. >> we're focusing on women who are roughly 18 to 34 years old. >> is that generation y? >> that's generation y more broadly, yes. >> what's under 18? >> we have millennials coming up behind generation y. >> you're kind of a y. just outside the y. >> i'm an x. generation x. >> barely. >> is your daughter a millennial? >> isn't he like a generation -- he represented generation x. >> why did you think of him. >> i don't know. >> i like him a little. >> he's like a poet. i'm surprised you would like him. >> i don't like poets? >> kind of. >> i'm angst ridden, sensitive. we saw you in davos. >> that was wonderful. >> it was, wasn't it? >> now you're here.

we both made it. the world is small, isn't it? >> the world is very small. >> good to see you. >> nice to see you. >> generation y. >> look at this. we have guests who come in with notes, but not like this. how did that work today? >> we have a lot of data. >> i did not look at my cards at all. >> don't you have names? >> if you took the show seriously, couldn't you -- >> i have to talk to her people. >> we're taking our office hours advice from bill mcgowan. check out his office hours. this is what he recommended. >> thank you for coming in today. >> thank you for having me. visit levo.com/ask for more. when we return, the focus will return to the global market sell-off. european market selling wall street's lead a little bit. not quite as bad. asia was scary. the eurozone is heading into qe when we're heading out. maybe it's different for them. and the ceo of lending tree gives us a snapshot of the

spring real estate market and mortgage rates. as we head to break, here's a look at yesterday's winners and losers. financial noise financial noise financial noise financial noise

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cnbc. i'm joe kernen and i play myself. which is the bad thing. colbert can come out from underneath that. i'm stuck with it. anyway, along with becky quick. she plays herself. >> you play yourself, too. >> you play yourself. >> you know what that means. >> if you were playing yourself you wouldn't live on this coast and you'd be in an ivory tower and you'd be like a huge tv producer, writer, star, i think. >> that's what i would be -- >> slash agent. >> you're half there already. >> i'd be an agent. >> slash, slash, slash, slash. >> would i be your agent? >> you could be. i trust you with things like that. i do. >> let's bring you up to speed on the market reaction following yesterday's sell-off. the futures right now at least they're not down like 800 points. they're up a little bit. in a really scary market where

things are really overpriced in bubble territory like back in '87, some people think it's similar. you have a big sell-off. the next morning it's scarier. on a friday, we'll see what happens today. fridays typically are not great. because there's the weekend. we'll see. in europe, this is the tail from yesterday. it's not as bad as what happened, at least not in the nasdaq. that was amazing. in the ten-year, 2.62. i was looking for a 2.5 handle which would have really got people's attention. there is a death cross that was in effect last week. >> i know. >> okay. look at the right-hand side. do you see all those little -- i mean, it has not gone below -- >> is it the squiggley lines? >> it has not gone below that

since july of last year. >> if you had a telestrator, you'd go right there. >> that does not go along with 3% gdp. >> we're headed straight up. >> right. 3.5. >> for 15 years now. >> yes. >> it seems like that. anyway, andrew, i think we should get to our -- >> let's do that. michelle caruso-cabrera is at the table. she's back from washington after talking to italy's finance minister. what was that like? >> i've always wanted to interview this italian foreign minister. >> did you talk to him in italian? >> no, his english is perfect. he used to be the chief economist at the oecd. he's written that austerity worked in europe. and of course, krugman thinks that it absolutely has not. i really wanted to hear, how does it feel to be written about

by paul krugman in his blogs? krugman is mean and nasty as he can be. when you listen to this conversation, remember two things, fiscal consolidation is when economists mean budget cuts and kanzianism. >> what do you think of paul krugman. >> he's taken the time to comment on may views. >> he would say there's incredible proof that austerity has failed. >> what i like to say is the following. that europe has undergone to fiscal consolidation number one. let's not waste the benefits of that, it's been successful. has been to adjustmentment periphery. this has been painful but it's beginning to bear fruit. we are looking at the banking and credit marking and we are repairing that.

what's left? growth. how do you generate growth in the european union? growth is a long-term structural problem, therefore, you need structural measures. >> he would say the fiscal consolidation is the problem? >> fiscal son solization is almost ever. why waste the benefits of that? it's delivering benefits in terms of much lower interest rates. levels of interest rates. and this is hugely important. so i am very happy that i can say today that italy is one of the most sustainable fiscal systems among advanced economist. >>s pa >>s. >> paul krugman doesn't tick you off. >> i consider and i still do, he's one of the most brilliant economists i've ever known. i'd like to thank him to his contribution for economic analysis. >> pretty classy response considering. >> as for the work krugman did before he became -- >> political. >> a political hack. >> yes, yes. >> to be denying that it worked

in europe, what else were they supposed to have done? >> when they have no money. >> they never backed off although there were people saying it's making the situation worse. now it's bearing fruit. when krugman was on here, i wasn't even trying to be mean. i tried to describe -- i asked him -- i viewed him as a unicorn. i didn't know there were mythical creatures with his ideas that were still left that would put those ideas forward with a straight face. >> can you imagine him trying to be mean? >> he said we had zombie ideas which were free market, private sector, growth from the private -- he thought those were zombie ideas. if his ideas are not dead and buried and living, his ideas go back to pre-hayek, pre-adam smith, where socialism might be the answer. >> where the money should go. >> how refuiated?

now i'm playing sarah palin. >> joining the conversation on the state of the eurozone, mark grant. it's usually a mock turtle or t-shirt. it's the open collar. >> a shirt. >> with baseball cards we trade who gets the lead different people. i had to give andrew a first round draft pick and money for me to be able to lead you, not just to talk about europe, mark, but to talk about the ten-year and talk about whether we hit 3% gdp. aren't there some strange things happening? aren't you seeing signs that maybe were more optimistic than we should be right now? >> yes. i agree with that, joe. what's happening is, i wrote a piece about this in my commentary out of the box called the new world order. what's happened is, that the fed has overcome the bond markets. i mean, they initially began

that after the financial crisis in 2007 and -- or 2008 and 2009. now they've continued on with this and this is the reason why we're in low yield territory. i think it's going to be even lower yield. >> how low can the ten-year get? >> 2.25, 2%. >> becky. becky. >> becky, are you still there. >> i'm here. >> don't fall off. >> 2.25. >> you sold all your bonds. >> i did. i did. >> 2.25. >> mistake. >> i think we have much bigger problems if we get down to 2.25, it will be a signal of much bigger problems. >> is it, though? >> i think. >> if we do 2.25% gdp, that's not the end of the world. that's about where the ten-year should be. that wouldn't indicate the end of the world, right? >> no, it's not the end of the world. there's never an end of the world, joe.

on january 2nd out of the box i said interest rates were going down. all 13 of the lead banks, all of them, said interest rates were going up. the long bond is appreciated about 11%, the ten-year, 14%. yields are much lower. the fed is in, even with the taper, they're now 4.25 billion or so on the table in free money floating around. they are going to force rates down because it's in the benefit to the government -- >> that's where i didn't understand it. that i didn't understand. i thought this was happening without the fed. >> mark. >> no, no, this is being caused by the fed. go ahead, i'm sorry. >> that's andrew. >> you have been a doomsdayer for a very long time. you built your reputation being a doomsdayer, if you will. has there been a time in the past five or even ten years where you've been a bull? >> i'm not particularly negative

at the moment. and i don't agree with your assessment, andrew. i think i'm cautious because in money management what you look at is the first and most important rule, the first ten rules are preservation of capital. what i try to do is advise people how not to lose money, which is very different from what most people do. >> i would agree with andrew on your view of europe you were overly pessimistic and that didn't happen, right? >> no. >> not yet. >> i think -- let me go through this for you. what you're seeing in reality is the following. economies in spain and portugal and greece are no better. what's happened is this, it's again the central bank. the ecb lends money to the european banks at 0.25%. they go out and they're either encouraged, owe ecoerced, howevu want to put it. they buy the sovereign debt of

the european nations and they've driven down the yields because of it. they get to carry those bonds risk-free in those portfolios. that's what's taken place. >> we don't have time left. i just thought of something. the fed still in here. so now i was going to say the fed is out of bullets. it's on the economy now. if we want better growth. what you're saying is the fed has to stay in just for us to keep treading water at 2.25 gdp we need the fed. we need the fed for this really low growth that we already have. we still need them to maintain where we are. >> joe, by the end of the year, even with the taper, they're going to have 4.5 trillion in the market that they can move from the short end to the long end. there are calls and all kinds of things and they'll push down yields because it's in the benefit of the united states government to have low yields. >> yes. all right. all right, mark.

you need to update us again at some point. you are a true journalist. poor jeremy siegel is going to be on. you ream him for being a perma bull. this guy comes on, you ream him, he's a perma bear. >> it was a contextual question. >> he did write a column about him. >> it was i favorable column. i wantedualize what he was saying. >> you feel that either one of them has been more right than the other? >> that's interesting. >> over time, siegel -- i don't know mark grant's history long term. siegel's history we do know. >> stephen colbert when he's not in character is very funny. >> really? >> yes. >> that was my experience.

>> we should mention, michelle, by the way, thank you. >> you're welcome. one of those bullish "squawk" market masters, jeremy siegel will be on. starting at 8:00 a.m. eastern time. find out if his lofty targets are in jeopardy. get going. get going. gotta be good. good? good. growth is the goal. how do we do that? i talked to ups. they'll help us out. new technology. smart advice. we focus on the business and they take care of the logistics. ups? good going. we get good. that's great. great. great. great. great. great. great. great. great. (all) great! i love logistics.

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box." we rolled out the platinum portfolio this week, getting stock picks from a variety of money managers. here's a quick wrapup of what you may have missed. >> number one will be air cap. >> canadian oil. >> facebook. >> technology. >> johnson & johnson, an old favorite. >> the key to buying stocks this year are buy value stocks with good business management. >> the majority of the names are

from outside of the united states. >> the world's largest health care company. >> i have my money on you, marty. >> there are few mega trends in technology. >> if the digital media portion of adobe were its own country, it would be a hot ipo. >> adobe systems. >> kevin loves s s s s adobe. >> every stock i pick will have 35% sales growth. >> our next installment will be at 7:40 a.m. eastern time. we'll add another three picks to the list. when we return, tapping into the pulse of the real estate market, the chairman and ceo of lending tree, doug lebda will give us his read on the home buying season and the future of mortgage rates.

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welcome back to "squawk box". where are we in the housing recovery? that's the question this morning. with us on set is the chairman and ceo of lending tree. we'll talk mortgages. people don't confuse you with lending club. we have had the ceo of lending club on. >> they're a client of ours. it's interesting what's going on with all these new platforms. >> longer term, past six months,

we have been trending higher. shorter term, the last couple weeks. >> coming down. >> we have been trending lower. freddy max, 4.34, 30-year fixed. >> that's it. >> where is this going, though? >> over time, they clearly have to go up. credit scores, you can qualify with a lower credit score and lower down payment. we are seeing banks moving back to a state of normalcy and credit starting to flow again. >> in terms of what type of mortgage. there's a 30-year fixed. 15-year fixed. average now down to 3.38. >> pretty incredible. >> five-year a.r.m., 3.09. would you take a hybrid right now? >> if you're not going to stay in your house forever, it always makes sense to get an adjustable rate mortgage. >> percentage year, 30-year

fixed versus 15. >> 30-year is still 70%. >> we know people aren't refinancing like they used to. how does that impact you? >> it's been great for our business. our mortgage revenue is up 50% year over year. it's because lenders bid up the the price of our lead. our business is doing great. >> mortgage ridge tphaeuzs in february their lowest level in 14 years. >> yeah. >> give us the continued trend for the next five months. >> what you saw in q4 is basically the projection for this year. take q-4 times 4 is what you will see in 2013. home prices up 13% year over

year. mortgage purchase originations are about the same. things are looking up. >> are you in the market for a new mortgage? >> eventually i will be, andrew. people are telling me seven-year fixed. >> i think that's great. >> right now the cy're consensu is year. >> you can pay off whatever you want. >> but seven year. >> what was that about for you guys? >> higher income, you can certainly do a shorter mortgage and pay it off sooner. but becky makes a good point. if you did a 30-year you can pay it off whenever you want. >> you think you will pay the piper when rates go up. but you don't know. >> one quick question. you got into a big case.

>> we did. >> you did lose. >> to zillow. you were suing saying the technology of auctions -- >> we got a patent in 1998 on the process of connecting consumers with multiple lenders. we went through a patent trial. we settled with four to five companies. we will appeal it. we believe there's lots of copycats. >> how important is it? >> not at all. >> thank you. >> thank you very much. >> good choice. >> we'll take a look at what's driving investors to sell stocks right now. we are expecting first quarter results from jpmorgan. "squawk box" is just getting warmed up. we'll be right back. 'll be righ. those little things still get you.

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i've got the wrong -- >> go ahead. i mean, i've got $1.28. we're looking at jpmorgan. just came out. revenue number looks below. the estimate is $1.40. $1.28 is the net number. and the first one that is coming out of release. that's $5.27 billion. revenue, 22.99. i would have had the guy just call it 23. it doesn't look like it's enough. a lot of times there's other revenue numbers. it looks like the revenue is at least below if it's an apples to

apples. 24.523. tier one, 12.1%. consumer banking. corporate investment bank 8.61 billion. it's going to increase the dividend. >> that, we knew. >> that's right. 40 cents. two-cent raise from 38 cents a quarter to 40 cents. and the return on intangible common equity was 13%. so if we go and try to get comments -- >> look what jamie is saying. in a market where we are trying to understand the economy, he said we are growing confidence. are in increasingly good financial shape and housing has turned the corner in most markets.

>> it looks like that may be an actual miss, the $1.28. >> the stock getting hit hard. >> good start to the year. >> where does he say he's disappointed? got anything where he says -- >> no. he's not saying it's disappointing. >> if that's a real revenue something, that's something. would it be bond trading? >> that's what we talked about yesterday. >> it's impossible for them not to. >> nothing in his comments shed any light on whether it's a definite miss or not. >> right. we're going to inundate you with analysts that follow this company throughout the morning.

thert the ones that had broken down every aspect of the business. commercial banking estimates. 56.25. down 90 cents or so. >> we will talk to an analyst in a few minutes. stocks plunged yesterday. investors fled some of the high technology flying stocks. that sent investors into a tailspin. it was a decline of 3%. so, is this a sign that the selloff is something we're watching an actual rotation to an end? executive vice president and chief investment officer.

what do you think is happening? is this a oneoff? >> it feels like money flow. some things that gave me cause for optimism, watching relative shares. many of the transport sector, particularly the rails, did pretty well yesterday. they have a reasonable gauge on the health of the economy. just listening to the comments from jpmorgan, i think the economy is improving. recent conversations i have had, including genesee in wyoming, the economy is on an upwards trajectory. it is being masked by external noise, whether it is weather and some of these other issues. it is taking people's eyes off the ball in the longer term.

again, these are trends slow, not rapid recovery. >> you're not making an overall call on the markets. unck it is going to be much clearer the next several months. >> in the pieeo tech simply got to go to ridiculous levels right now. many others were overlooked. it is going back to real growth in the economy. >> i think dan is right. it is evidenced by multiple things. certainly the action we saw yesterday, very aggressive selling. lots of conversations with folks around the street who confirm that. but more of that flow type driver, as dan mentioned, as

opposed to somebody changing their fundamental picture. valuations high in tech and biotech as an example. if you look at all the underlying data, if you look at the preview of earnings continue, it's a fairly low bar we have to get over for this earnings season for a bottom line and top line growth perspective. i do think revenue growth is going to be the key factor. part of what we have been seeing from a selloff in this rotation out of high beta, high growth has been some concern over whether or not that top line revenue growth can really take hold. we have seen the macro economic picture improve particularly in europe to a great degree.

we have seen this higher beta, higher momentum selloff. >> i get it. explain to me why then are we watching the 10-year, the yield push down so dramatically? why are bonds rally if it's nothing to do with the economy? >> bond traders react to the data in real-time. the data in real-time has been negative. it has been tied a lot to weather and some issues that will over time go away. i think as data improves into the second and third quarters this year, we would amendment it would be going higher. >> bond traders aren't known to be stupid. >> joe, you also have some other issues too. capital flights coming in from overseas. >> rates are lower there. >> rates are lower there. we are still viewed as a safe haven. and issues within russia and what's going on in ukraine,

probably forced capital overseas. >> if you thought rates were headed higher, you wouldn't buy it. >> you wouldn't. you have to be insane to put money into bonds today. >> what you expect to see with the numbers, you think earnings will be first? unck the job market will turn too? >> i think the job market has turned. if you look at the monthly number, it is 6.#% roughly around the 10-year average. 20-point is 6.4%. i think the market is still in the process of readjusting our expectations as to what full employment in this country should look like. if you look at the job growth during that number, it's come back. we saw a soft patch over the course of the winter. that seems to have rebounded. the weekly number is the lowest weekly number since 2007. if i remember correctly from what i read yesterday.

the employment picture and really the broad economic picture i think has already improved. we're already there fundamentally. the question now, can that translate into better growth for companies particularly as it relates to revenue growth. that's the key for earnings season probably for the better part of this year. certainly in the next couple of quarters. >> steve, dan, thank you both. good to talk to you. >> check out jpmorgan. we're going to head to break. >> did you see mortgage originations in the numbers are huge for the lowest level. i mean, huge drops, right? just in market and investor services for fixed income, that was down 3.8 billion. down 21% in fixed income on

that. equities up. and underwriting of high yield down 22%. >> but look at this. mortgage banking net income, 114 million, decrease of 559 million. >> net revenue, decrease of $1.1 billion compared to the prior year. those are the types that take your numbers down in a meaningful way. >> they did revenue and fixed income 3.8 billion, down 21%. over a billion missing there. revenue was 22.9, right? and 24.52 is what they were looking for. but even mortgages. that's like -- it's all related to fixed income. >> even mortgage services. pretax, $270 million.

>> it's not even as much equity banking. it's mortgages, fixed income. i guess anyway. he have anthony pellini coming up at raymond james going through the numbers. he likes jp morgan. we had another terrific guess. the platinum portfolio. if you missed a few minutes. >> i'll be reliving all weekend. >> you can't afford not to watch them again. >> links as to which colors are good. i'm going to call some of these people and just shop around. we'll be right back. 'll be righ.

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fixed income, trading revenue. jpmorgan reporting first quarter results moments ago on the squawk news line. joining us is anthony pellini, bank analyst at raymond james. it does appear most people on the street are saying the bottom line earnings per share number was a little below and revenue was below. is it due to trading, fixed

income? where do you see the shortfall, anthony? >> it's a noisy quarter. most of the myths -- and it is on an operating basis on 10 cents is on that line item. trading, fixed income was a little bit higher than management guided. >> but down from last year. >> exactly. it guided down 15% from last year's first quarter, which was an incredibly strong quarter. provision was a little higher. >> what provision? >> the credit. >> it was millions, wasn't it? >> 850 million. most people were looking for something lower. maybe 700 million. investment banking fees that was lower than expected. credit card income was a little lower than expected. expenses were also lower than

expected. so we off set. if you take the myths on the mortgage banking line it would account for the 9, 10 crept miss on the operating basis. others were positive. others were meeting. the key negative, and it doesn't show up, is that we did not have acceleration in loan growth. we had a modest increase in pherbl loans but nothing like we had hoped for. it will be interesting to see if wells fargo into show a stamm increase. but the growth remains sluggish. tax rate was in line. the miss was free income driven. a little beet, slight beat ironically on trading. >> and that goes for revenue as well as net income? >> exactly.

it would be miss on revenue and i would say 9 cents or 10 cents. >> would you buy? if you're somebody looking at this longer term or not? >> i think there's a lot of value in jpmorgan. they are growing the international platform. and this was a tough quarter. >> what's your target? >> our official target is # 72. 12-month target. >> are you going to re-do your numbers later today? >> most of what i have seen so far is an impact on this year's number versus next year's number. >> mortgages may have hit their low. we are already seeing lower mortgage rates. in you know, it's tough. yeah. the mortgage line item has hedging. there's a bunch of things

besides volumes and margin. gain on sale margin. it is typical to say the big miss stokes on our modeling for mortgage banking will flow through to a wells fargo or bank of america. because each quarter, you know, banks show different areas of strength and weakness on that line. i would say the big, you know, negative here was balance sheet growth. >> it scares me when you say commercial loan growth. >> especially when jamie dimon is talking about what he sees as a decent economy, a good economy. >> that doesn't really show through on the balance sheet. i didn't have the growth that we wanted. they missed the total loan projection by a fairly substantial amount, by $15 billion. >> supposed to hit 3% on gdp. you would think you would start to see that in commercial lending, wouldn't you? >> i would expect it and i would

be really surprised if wells fargo didn't spike a pickup. >> next time i want to talk to you about some of the personnel moves at jpmorgan. >> sounds good. >> great. we'll talk to you soon. when we return, unexpected faceoff between the architect of the united states ben bernanke and a critic of the policy, head of end ya central bank. the struggle to keep kids down on the farm. the average age of a farm serer 58 years old. >> that's young. really young. >> depends on your perspective. >> squawk master of the markets jeremy siegel will join us at 8:00 a.m. eastern. 8:00 a.m. eas. gunderman group. gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth.

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coming up, be sure to see on the money. john rogers. where he thinks the market will go after this volatile week. check your local listings. unexpected faceoff between

two of the leading central bankers. ben bernanke versus the current head of the indian central bank formerly university of chicago and squawk master. what happened? >> extraordinary moment. he is in town. he is at the brookings institution. he speaks for 20 minutes. you can see him there on the right. >> yeah. >> and he essentially criticized the u.s. monetary policy. >> which he has been doing actively from india. >> yes. what made this time different, ben bernanke was in the front row. we didn't know it. i run around to the side. this is the photo we have. we only see him from behind. ben bernanke gets up. he gets the first question. oh, look who is here? it was a criticism and a fairly long one. rajan had gone on you need to consider the impact of policy on other countries.

you can make our lives quite difficult. sometimes the spill overnegates what you already did. >> those are fighting words. >> what is significant about this event -- >> he has been saying the problems they're having in india, the devaluation, all the pressure, all the money coming out is because of what's happening because of this threat that they will now pull back. they asked us to stick around longer. >> so i'm going to play a little bit of the sound. you are going to think i oversold it. central bankers never get animated. my puppy died, today is my birthday, it all comes out the same. >> some people keep saying transparent and well commuted exits would be useful. but in a situation where you have heard behavior, sometimes transparently is and good communication is not the best thing to do.

when everybody realizes the interest rates are going to go up in june 2015 when the realization is given to them, what do you think the reactions of investment managers have been sort of hurled elling into other markets might be? it would be a faster and more emitted exit. >> i don't think you oversold it. that's pretty good. >> tiny piece of bernanke. if you want to hear the whole thing, we have it all on our website. it is wonky. >> a lot of what you have been talking about today reflects the fact that you are skeptical about the monetary policy. >> if i play the rest you wouldn't have understood much of it. i think what is extraordinary is ben bernanke has been criticized. niece he's no longer head of central bank. he has been criticized by members of congress. but somebody who speaks his language of obvious intellect, mono au mono.

and somebody who is in same position to say what you're doing hurts us. and having him really defend it in a way -- >> it's the first time he can probably fight back not being in the central bank any longer. he gets to defend what done and talk openly about it. >> i want to show you two more photos. the thing ends. they come out. rajan walks up, and shakes his hand and says, ben, i'm going to miss you. i'm not saying they were enemies. it's not friend. it is not like they have seen each other meeting after meeting over time. and people were taking picks. it's the kind of age we live in when a central banker is treated like a celebrity. >> we won't know how he is going to be looked at for five years.

>> maybe 10. can i tell you something really petty? missed the whole thing. >> where was he? >> on vacation. >> he might be with bob weir. >> what should investors expect. rbs capital will be joining us in just a moment. in just a mome. financial noise financial noise financial noise so ally bank has a that won't trap me in a rate. that's correct. cause i'm really nervous about getting trapped.

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welcome back to "squawk box", everyone. let's get to some of your morning headlines. jpmorgan kicking off earnings this morning. earnings of $1.28 a share. compared to $1.40 a share estimates. revenue shy of expectations. $23.9 billion verses the $24.5 billion analysts were looking for. we just spoke to an analyst who said, yes, they missed on a lot of lines. including commercial loans.

it was lower growth than anticipated. stock is down 2.3%. ceo jamie dimon saying housing has turned a corner in most markets and he has growing confidence in the economy. this is a dow component. after yesterday's big decline. thanks in part to what jpmorgan is doing. down by almost 55 points below fair value. s&p off close to eight. nasdaq down another 25 points after yesterday's 3% decline for the nasdaq. >> it's pretty ugly in the nasd nasdaq. we had guys saying you had to pie with both hands. one of our platinum types. >> they will be capitulating again. >> you don't capitulate at 2% selloff, do you?

>> if they are levered. >> even the s&p -- i don't know. we're flat for the year. a percent and a half maybe. maybe the capitulation happens in the nasdaq. that's 7% from the highs. >> again, you have to think 7% levered. >> it's always levered, though. >> well, we're going to get more on what's been happening with the economy. up next, we will be hearing from wells fargo. those are expected at 8:00 can a.m. eastern time. analysts are expected wells fargo to report. >> sony warns customers to top using vaio laptops. there is a risk the battery could catch fire.

at least three pcs have caught fired. the fit 11a is the model in question. made by panasonic. >> ending the day down triple digits. with money pouring out, what should investors expect once tech kicks into high gear? the head of rbc. you switched from rbs to rbc. what's your take on what's happening this week? >> we had a selling off of stocks. facebook, twitter, netflix, those are the five up 100% or more last year. some of these valuations got ahead of themselves. >> they can come back by the end of the year? >> i think so. >> is there a particular move? what's happening?

>> i doubt it's a secular move. you just created a pretty interesting buy opportunity. we put out a basket of stocks going into the year. you can get internet exposure for 15 to 25% earnings growth. when those stocks correct, step in and add to positions. >> that's defensible. >> yeah. >> what's amazon to you? >> amazon is a different case. >> story stock. >> one that will be proving out profitability this year. we think the cash flow will double this year. near term we think there's less risk to earnings than we have seen in some time. we think across the board earnings will be in line. most of them, amazon, priceline, facebook probably have less risk this quarter than we typically

see. >> in general, you don't think the nasdaq -- you think 4,000 is okay? >> i'll stay away from big questions like that. but i'll look at the internet space. we have had a lot of supply in this space. a lot of ipos. especially in the small cap space. yelp is a good example. >> remember the ipo? how long did it go after that? >> 18 bucks. >> and then just almost 60. >> it got above 70. >> that's kind of a little poster child for what happened in internet stocks. >> i thought you were going to say something like that. i fundamentally disagree. i may be wrong. this is face book. there's google, priceline, ebay. four companies doing 40% to 50% ebitda. >> i mean the new internet. google i don't think of as

internet. >> utility? >> yeah. >> we like facebook on the pullback. it's worth somewhere in the mid-70s. we could put as much as 40 pe. we think growth supports the valuation. we like the video ads. >> that might have been obvious to people at that point. or twitter. >> twitter is probably your fluff example. i think more so -- >> more than facebook. >> i think facebook will be back above 70 in three to six months. >> i think twitter will go back to its highs but probably not this year. >> there's more coming. >> my next question, we have alibaba and other guys coming up. >> we have had a pretty robust ipo cycle the last two to three

years. there's been very good stories, fundamental stories that have come out of that. most of them very aggressively priced. we tried to be cautious on most of these that have come out. >> do you think the guys understood their stock was overvalued? >> it's hard to argue that. that's probably right. you have had two things -- you have had a surge in equity prices. 200 billion in cash lying around looking for deployment. by the way, the way these companies have seen reaction i would be surprised if maher and others aren't saying we should do other acquisitions. >> mark, thank you. >> or acquisitions using stock?

>> mostly cash but stock. >> it got so expensive in the nasdaq you started worried whether there was speculative money. twitter, tesla, facebook. >> zulily. >> since you mentioned tesla. one of the biggest trends is vehicle connectivity. it is a hot spot. >> is it going to help internet or someone like at&t? >> darn good question. >> pandora as a playoff vehicle connectivity. >> they warn you when you are not paying attention. everybody is still texting. i wonder how is this person

driving like that. >> you are talking about the hot spot around it. >> yes. you're looking at stuff on the computer in the car. >> distracted driving is going to be a major issue here. there is a new growth engine for some of the names. >> give me one other thing. ebay and pay pal. and the end of this saga. i felt it offensive that you could have carl icahn call the board corrupt, da, da, da. and then announce, oh, it's okay. this horribly corrupt thing, everybody is ignorant and they are all morons, i'm happy to work with them now. >> he picked the wrong activist situation with ebay. he has been extremely successful in the internet space. netflix.

yahoo! third point nailed it. poor fundamentals, massive shareholder turnover. that was the opportunity for activists. >> you would split pay pal? >> no. absolutely not. >> he lost? >> he lost. ebay is a very good asset. rock solid balance sheet. he did win one thing, and it's good for ebay shareholders. he got them to start buying back more of their stock. they had too much cash. they should have been buying back their stock. they're doing it. >> another big name, a stock picker looking to make you money. sisco down 2% yesterday in the selloff. find out why this is a buying opportunity. you cannot afford to miss it. it will cost you money. you'll be poorer if you don't.

why the government is encoura encouraging young folks to get into farming and ranching. ming ? yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves.

it is platinum portfolio time. we are talk squawk picks. we are adding jason subotky. he thinks slow and steady wins the race when it comes to investing. he joins us right now. jason, good morning. >> good morning. >> you think slow and steady wins the race. you're not looking for a high flyer the next month or two. you are looking for the next several years. good you would like to own? >> we like businesses where they have the ability to expand margins against the back drop of the general market where we think margins will be compressing. they are even cheaper than they

look. >> 21st century fox? >> they are building out new networks like fox sports. and building out networks like fx. the next three years, their earnings and margins will dramatically open up. it has a good platform for growth. the company is generating a lot of free cash flow. it's very, very focused. >> they are spending a lot to invest. when you think of things like fox sports you think now is the time to be in it not down the road when they reap benefits from it. >> they are de-listing in australia. that caused pressure in the stock. that should end at about way month. you have had artificial pressure as that lets up. the stock will be able to do much better in the near term as well. we're not people who predict much about the near term.

>> you like blue chip proctor & gamble. >> you see the world dropping rapidly like the last few weeks. it's a steady company. has a lot of high market share products. it is very focused now. reinvigorated management for the last year. we think you can see good margin expansion the next three to five years so the margins can grow. >> how strong is leadership? >> it is always important. >> you saw earnings stall. they took pricing too aggressively, which is easy to do. with a lot of these companies, as they are able to rebase and refocus, which we think proctor & gamble is doing right now -- >> he was gone. he was already retirement age when he left. >> i know. >> and you&they brought him back. so they still have that problem. who are they going to get to

replace a.g.? >> a lot of their competitors ended up with p&g people who know a lot of p&g strategies and execute them well. they will find a strong manager. he came back to make sure the company is well situated. >> the first time around they screwed up. >> dirk jagger was no good. they have had a couple . >> even in a bad scenario, it's not that bad. we think there is a lot of room they're focused on. >> 45 products that alone each sell over half a billion dollars. another stock that you like is technology bellwether cisco. people worried about technology right now. why do you like cisco?

>> back to what i mentioned earlier, it's almost all about the price. it is one of the cheapest technology stocks out there. it is one of the cheapest stocks out there. seller balance sheet. a massive product portfolio. lots of diversity within it. huge margins. it sells 10 times adjusted free cash flow. in this environment it's a huge standout. it's a lot about the price. cisco has executed really well, grown thr earnings significantly over the last, you know, 13 years. and it's about a third of where it was at the all-time high. >> a.g. is only 66. 66 is the now 56 at the moment. he could have four or five more years. >> he may not want to stay four or five years.

>> he may not want to. but it's a different world at this point. maybe succession isn't right in the next year or two. >> rupert murdoch, who is 83, says he hopes he has until he's 123. >> sumner and others. >> thank you for joining us today. >> thank you very much. >> when we come back, jeremy siegel and the markets. and coming up from wells fargo. up next, the government's big push for farmers. jane williams has a preview. jane? >> hey. the average age of the american farmer and getting older. who is going to grow our food? we're still going to be hungry. . ameriprise asked people a simple question: can you keep your lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry, but you worry.

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rain makes corn, corn makes whiskey, whisk makes my baby feel a little frisky. the government is pushing to get young people involved. jane wells has more on why it says here, hard to keep kids down on the farm. it's at least 10 years, jane. it's at least 10.

i would say 15 years is the new -- right? work with me on this. >> i'm going backwards is my new thing. you hit a certain age, which i won't mention, and i started subtracting. which is not very good in business. the challenge is, in one word, land is expensive. there are six times as farmers over the age of 65 than under 34. ryan kirby didn't like his office job in houston. so he decided to grow corn and soy beans. and backing on agriculture to succeed. and daniel. >> i graduated from stanford in 2002. most of my friends were going into high-tech and things like that. a spent a couple years doing that. >> now, to the relief of his family, he came back to their

cattle and wine grape operation. all three are returning to family farms. they do not have to buy land. that's the only way they can afford. it. >> in california, it is especially difficult. land prices are so expensive that, you know, to be able to break even or even make a profit for krouyourself is almost impossible. >> why do it? >> the love of the land is the right thing to do. >> with 2% of the american population being farmers and the rest being consumers, to me that seems like a wonderful opportunity. >> the main thing that needs to be done is from other farmers, the dads, people already doing this, encourage a love for growing things and a love for agriculture with your children. that is where the love is. >> all right. now, the usda today is announcing new funding to help new people into farming get

financial planning. also loans through the farm bill. and agriculture secretary tom vilsack tells me i hopes to attract returning veterans. listen. >> i think it provides a way of reconnecting to the land, reconnecting to the roots. and i sincerely hope our work with veterans groups results in a lot of young people coming back and farming the land. >> farming will continue. investors are buying it. they are bringing in managers to farm it. expect more than that and fewer family farmers. back to you. >> i think we can maintain -- the country was 50% farming 50 years ago or whatever it was. it can definitely tract enough young people. you develop an eye for it. and the love of growing things. it's just too expensive.

and a tough job market. i'm sure people would flock to go do that. you're not standing behind a horse with a plow anymore. it's not quite as physically demanding. >> it is incredibly efficient. it will work. the market will work itself out. whether family farms or families who are farming for the endowment is the question. >> most of the people working the farm, is this a family? is it an immigration issue? who is doing the hard work? >> it depends where you are. obviously in california you have a lot of labor issue because of the crops and high intensity. in the midwest you can machine farm. they are trying to get machine harvesting here more. most of the farm owners are sons and daughters. they are the only ones who can tpard to get into it. >> do you know jason aldean? big green tractor.

i was going to play it. we don't have it. we have to pay for music. jane? . jane? gunderman group. gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. growth? growth. i just talked to ups. they've got a lot of great ideas. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! awesome! awesome! awesome! (all) awesome! i love logistics.

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welcome back to "squawk box" here on cnbc. i'm becky quick with joe quick and andrew ross sorkin. after a rough day in the markets yesterday, you are seeing continued blood in the streets. dow down 60 points. s&p up 7.5. nasdaq lost 3%. down another 22 points below fair value. >> it looks okay here. wells is reporting right now. looks like $1.50 on revenue of 20.63, above 20.95 on the street right now. at this point it's hard to say

wells down 21 cents. 47.56 and 47.89 close. metrics are slowlily coming in. 12.63. it is similar to what jpmorgan made. wells fargo, $250 billion market cap. much higher market cap. it gets rewarded for what is seen as the best managed bank in the country. >> in the mortgage business. you think it might -- >> at least these numbers -- you know, i think that jpmorgan would have been fine with mortgages being down.

>> anthony talked about the loan. >> i want to see that here. 20 write throughs. >> john is the chairman and ceo. deposit straighting the ability of our diversified business model to perform for shareholders. tim sloan, cfo, a frequent guest on squawk, we're pleased with wells fargo's performance in the first quarter, particularly with some of the fundamental drivers of long-term growth. loan, deposits, capital, credit quality. >> total average loans up 3%. we don't have that commercial number. it will be interesting. >> commercial loans came in. >> we won't know whether they are above or below. >> the chart is not playing out correctly.

came in 3.79, 5.61. >> nephew down last year. higher noninterest income. more than off set by the decline in net interest income. too fewer days in the quarter. waoelgt management, merchant services, personal lines and loans. what is that, sequential? year over year? or sequential? mortgage banking, noninterest income down $60 million to 1.5. up from 9.9. growth was driven by increase in market sensitive revenue.

mortgage servicing income. i don't know if you got the same situation here. certainly not down as much as jpmorgan. >> jpmorgan going to have a bigger impact. >> jpmorgan kicked off earnings season, the financial sector. they recorded a 1.26 a share versus 1.40 a share. revenues shy of expectations coming in at $23.9 billion versus $24.5 billion analysts were looking for rplt health and human services secretary kathleen sebelius is stepping down. president obama has chosen sylvia burwell her replacement. republicans continue to see problems with the affordable care act as a winning issue. of course lots of questions how

she could have said she was 11 hours earlier. a couple of conservative sights has be gone after burwell. she was the one who sent out the e-mail who shut down the government. she's going to take flack for that. she has experience working for bill gates and others. >> this is his go-to person at this point. >> it's a tough business. sebelius has sort of taken one for the team. >> the other question, what does someone like sa peel kwrous do next? >> he's shot going to replace letterman. they definitely have someone. >> colbert spot is open now. there's an opening, an opportunity. >> because a the of times kathleen sebelius seemed like a comedian. >> rim shot. >> she was extremely funny at

certain times. selloff dragged down the broader market and left all the indexes in the red. jeremy siegel is the professor of finance at the wharton school at the university of pennsylvania. a true thought leader. kind of a legendary thinker in all things stock market. i'm going to start with something that seems obvious to all of us. if you look historically what caused tough times, bear markets, there don't seem to be any conditions right now that would cause recession or bear market. i still worry because we never know before it happens what it is going to be. do you agree with bill miller on that, jeremy?

>> you're right. we don't know what we don't know. people ask what are the unforeseen risks. all rotations are certainly painful. i think this one is healthy. . dividend stocks have been under performing over a year. the fed is raising rates. the fed is raising rates. we saw the rates going up. stay away from the low dividend paying stocks. now, you know, we see the 10-year down to 2.60 from over three at year end. people are saying kwrorz a lot of interest rate hikes. certainly we do think in 2015 the fed will start raising the rates. but i myself have downgraded what i think the 10-year treasury will be. maybe not over 3.5. wow. with dividend stobs yielding

almost that month i think what's happening is the rotation is coming. >> you're making the case -- we're worried about the 10-year. we think it indicates a slower economy. but you're saying it just makes dividend paying stocks more competitive. let me ask you this way. if the economy disa points. see, we have done fine with 2.25 gdp growth. it has doubled the last five years. people think the economy needs to go into a higher gear to validate where the stock market is. do you think that's true? >> i think we need to see some acceleration. this first quarter will be terrible. it might be around 1%. i think what the market is hoping for is 3.5, 3.75 over the next three-quarters.

yes, there will be disappointment if we don't get that. but what will cushion the market, i don't think that will mean a bear market or serious selloff. again, as we mentioned, yields at 2.60 on the treasuries don't really threaten the conservative dividend paying stocks. they will hold in if there is slow growth. if it goes up to 3.5 or 4, we can still hit our goals, which is 18,000 on the dow by the year end. >> jeremy, there was aim time we thought the fed had a problem because even when we intimated they were e going to taper, remember the 10-year ran up. we were like oh, my god, if it gets to 3.25, almost chickened out whether to taper that first time. they should be ex static that they are able to do this and interest rates are so under control.

maybe it's good they can do this and rates will stay behaved. >> i think they're pleased the wrong rate came down. that is certainly what's holding in the more conservative sectors of the market. it should be reflected in a rise in those sectors as this rotation is continuing. this is an excellent sign. if the 10-year was 3.25, i wouldn't be anywhere near as bullish as i am. >> i wish i had been on the debating team. they could take either side. >> sitting here next to you and knowing you tip, i don't know with what you actually believe. >> i read 10 signs of a psychopath. i had some of them. not all of them. i was well below.

>> good to know. >> do you think any of the stock market gains, do you attribute any of it to artificial sugar stimulation from the fed? >> very little. >> really? >> yes. the last two years, all the stock market gain is due to the qe of the fed. i'm saying we just passed the median price earnings ratio, 15, 16. in a hroeu interest rate environment we are certainly back on the 10 year in the post world war period, 19 is the average pe. we're not there yet. it isn't qe. it's valuation of the market that is cheap in a low interest rate environment. that's the driving force. >> andrew is not interesting because you have written him off. do you put any freedens in what he is saying?

>> i do. >> i wasn't rolling my eyes at all. >> what is that hand signal? >> we just put a 10-year note up. i noticed the yield is 2.619%. so we have watched the futures under more pressure. we have watched the yield under additional pressure. what do you think is causing that? >> well, in the short run you're going to get -- the yield is going to move with the stock market. whenever there is yield in the stock market, people move to the treasure list and that drives the yield down. you will see it below 260. it is short run. >> are the stocks driving the bonds or the bonds driving the stocks? >> i think now the stock market is helping put that bond rate down. people worry is this a recession.

it's why we are getting buying. move from riskier assets to safer assets. >> professor, most hedge funds, the big funds right now are relatively overlevered and long, the market. the question is how long can they hang out here with the market direction down the way it has been? what does that mean, at least in the short-term. i know you're playing for the long term but at least in the short-term. >> i think they are overlevered in the momentum stocks. they have been playing those stocks over time. i think they are probably underinvested in the conservative dividend paying stocks. and i think they're thinking of a rotation in that direction. i don't think it's on the stock market in a whole but the types of stocks that they own. >> all right. professor siegel, thank you. >> thank you. >> i defend you all the time basically.

>> can i say not from me. >> who are you defending me from? >> just the permeable -- >> you just can't win with this guy. >> andrew is doing his job and pushing people. >> jeremy, thank you. >> i'm okay with that label. >> street's reaction to wells fargo. the stock is trading higher now. we will talk to financials and what investors should be taking away from the numbers. as we head to break. jpmorgan shares under pressure. down 3.6%. missing expectations. "squawk box" will be right back. .

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welcome bark everybody. wells fargo reporting first quarter results just moments ago. joining us is banking analyst from guggenheim. did you like what you saw here? >> we did. what we think we saw is three items that helped significantly beat the market's expectation.

one was increased educate investments as a reap of some of those investments made in companies as they needed that extra capital. they are now getting the benefit of the return in their profitability. expenses coming down. and a marked improvement. they are continue to go get better. >> what do you think about commercial loans? an analyst looked closely as jpmorgan's numbers. they were concerned the commercial loan growth wasn't stronger. we were trying to figure out if that said something about the economy or jpmorgan? >> it says something about the first quarter of a given year. you have a bull back from year end, especially on the corporate area. they showed quarterly loan growth. we will see that in super regional banks that are more middle market.

you start to lose some of the corporate traction we have seen in the past. >> part of what you are talking about is what executives have done. what would you read in the broader economy, particularly when it comes to the housing market. >> again, same originations down in the first quarter. but that's as much seasonal as anything else. we look at first quarter to second quarter, you go from the weakend quarter of the year to the strongest in the second quarter. you would see some home purchases go up. we are still seeing deposit growth. you have loan and deposit growth at wells fargo, which will be good balance sheet growth. >> stock is trading $48. do you have a price target and would you buy it here? >> we would. $60.

wells fargo will be the only bank able to accomplish what we call the triple crown. sequential double digit growth over a year ago. nice momentum on earnings. the increase in the dividends, 17%, was just a foreshadowing of the revisions we will see in the outlook as we go through the year. >> if you can bet on wells or jp, is wells the winner here? we had an analyst put a $72 target on jpmorgan. if he's right, there's a lot more money to be made here than there. >> you have wells for going on the short run the next six months which is very positive. jpmorgan, we have a buy on. as we go through the year, we should see revenues starting to come back even more.

wells on the mortgage side has the flexibility, which balances out well. it's a nice backstop to see what we are seeing in originations. >> one of the worst days in two years. some stocks close to 10%. a closer look at the sector in just a bit. find out if it will bounce back. check out the "squawk box" market indicator. back in just a moment. in just e financial noise financial noise financial noise

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welcome back to "squawk box" this morning. google glass is coming for the masses. but only for a limited time. they will take online orders starting tuesday, april 15th. also tax day. don't forget that. quantities will be limited. web-ready glasses will cost $1500 a pair. this will be the biggest expansion plan to date. many analysts it will go mainstream later this year. joe will be 12:01, ready to click. he has his credit card out. >> i just know some people, july 4th is an important day. for other people, april 15th is the tpeufrpbt day.

>> tax day. when we finally can take back, take back and give it to others. >> there's no comparison. stkpwhrb july 4th. >> rob lowe figured out collectivism. >> we have other news. both of you need to pay attention. i kid you not. cisco and juniper saying heartbleed bug, a computer virus, that can access user names, passwords and other information. they said they quickly fixed the problem. it affects routers, switches and firewalls often used by businesses.

>> we should not be buying stuff online? >> there's a site -- is it mashup? i found it yesterday. they made all the sites that people go to. dropbox. they might have had a problem. change your password. >> because they have fixed it? >> it's a potential problem. >> i went and changed passwords. >> they say don't change it until the site has been fixed. >> what did you change it to? here's the thing. if it was a virus that actually infected humans named heartbleed i would be much more -- >> just for me. >> is this a joke? think about it for a while. when we come back from break,

try something else. >> we have pti data. and then they were helping with the s&p. the new highs. lately it seems they are sick of biotech. and as we head to break, take a look at the u.s. equity futures. a lot of red arrows after a big down day yesterday. down 266 points down. 266 points. it's the get growing sale from adt. right now you can get $200 off adt pulse for small business

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welcome back to "squawk box". now to rick santelli for the pi. >> march ppi, final demand month over month. my goodness. i had to look at that twice. up 0.6. that's a whopper of a headline number year after year data, 1.4. take out food and energy. 1.4 as well. these are pretty hot numbers especially for an economy where if deflation was a flag you would need a pretty darned big boat to keep it all in perspective to put it on top.

down 0.1. on the core, 1.1. i keep having to look at them three times. pretty surprising to me. if we look at what's going on in the markets, i say look no further than the 14,000. that is given you the identification of where you need to pay attention to. we want to continually look at the dollar/yen. euro in favor of the yen. in a world where we settle at 3.03, it's really, you know, the tens and the 30s are having great 2014 in terms of return.

we are now several basis points under the psychological 3.5% area. back to you guys. >> we have been on the same page. i watched you yesterday on "squawk on the street". what is that called, the santelli exchange. >> it is, joe. the santelli exchange. that's it. >> now i have already switched again. i worry about what is causing rates to go down. and i worry about what's causing the 10-year to be where it is. i think it indicates in a flat yield curve that we are overestimating the strepblt of the economy. now i have another viewpoint. with a fed that definitely wants to extra indicate itself from what it has been doing, i think it is a positive rates are behaving so well. all hell broke loose. it gives them cover to be able to keep doing what they're doing and rates are behaving. maybe the reason it's there isn't great. but maybe the outcome is actually a good thing.

how about that? >> that is perfect. next to the fourth head on mount rushmore, i wish i could carve those sentences. they are watching what's going on. a light bulb should go on. highly iq brains. that is we should use this opportunity, ground cover this basketball pit to get back to conventional central banking. we know there is. at least anti-crisis kind of banking. because should there be issues, should there be a spongy or brief recession based on the yield curve a couple of quarters down the road, how will they try to do what they used to do? tinker around. try to give it more momentum. when you're this far into the programs and you're still keeping them on it affords them

few alternatives if things go in an unforeseen soft economic direction. >> that's not bright point. if we don't go up to 3% gdp, maybe they will realize, god, we have thrown everything we have to try to help the economy. maybe it's not something we can help. maybe they will let it stand on its own. so markets start clearing and we go back to the old way we used to do it. and private sector dictates where prices go. >> i agree. it gives us a view into economies of the past like average tina, brazil or venezuela. if you want to take care of your people, the best way to do it is to make sure the economy is coming along to give you the capital to prioritize to do the programs that help people. >> yeah. >> but if helping people and ignoring the laws of free

markets is the direction we ultimately have fewer and fewer and fewer. >> how about -- is the market -- if it is only 2.25 gdp, is this going to be more than a 5% or 6% decline in equities? do you think we're looking at a 10% or 15% decline? >> listen, all these programs didn't exist, we're kind of looking back through the prism of these were the normal days, i would say 5% or 6% correction would be in the cards. knowing things aren't the way they ought to be. no one can truly tell you fair value in any market, i think the ice will be thinner, correction deeper. but i think ultimately we could find the type of bottom and get all sectors of the economy and the markets on the same page so we can actually look at the mall locator. the dot, you are here.

know where we are with equity, the relationship and the economy. >> okay. anyway, took me a while to get to that point. >> yeah. i'll tell you what, joe, one final thought. one final thought. even the yield curve, the interpretations i try to make on the exchange, lately it's been a good topic, we really don't know. we're using our best guess. it really is disappointing economic outlook. >> it is. a flat one is predicted 10 out of the last three recessions. >> exactly. let's bring in cio at citi private bank. were you able to hear all of that? >> yes, i was. >> one flat kwaoeld curve. long term yield fund averaged 100 basis points. here it is at 260.

obviously low rate levels. but, you know, it has flattened down some. there's tons of carry-out there. even where we have unemployment insurance claims falling back to 300,000. 200 jobs per month in february and march. likely stronger in march. you see, a squeeze on the consensus of optimism. >> why is it up 15%? >> we retraced after 100 basis points selloff with the feds still buying bonds. not tightening. and i think the fed's guidance that we will have a rate hike six months after qe was a bit of the -- >> you didn't have a clue we would be at 2.6. didn't you think we would be above 3%? >> generally we think rates are headed up. this is one of the first type in the cycle where we haven't

revisited dramatic low yields and gone lower and lower yields. we are a full percentage point where where they were a year ago. complacency in the bond market compared to a year ago has been dramatically reduce stkphrd we will do 3% gdp. >> i think we will come close to 3% gdp. >> i think it's important to see the context that we have not seen a severe deterioration in credit markets while rates have rallied. there's been a little bit of spread widening. i would look for that to lead more than sort of just a correction in markets. which so far in the last five quarters has been half the long-term average. >> and than you have faber who says 1987, worse.

i feel better now. i think everything is fine again. but if the market. like yesterday, the market didn't want to listen to everyone. it just does what it's going to do. >> we're going to talk with biotechs next. they have been getting bruised, battered. after hitting an all-time high back in february, biotech etf down 8%. find out next what's about to happen. and pro golfer lexi thompson just won her first major at 19 years of age. >> that's crazy. >> that's crazy. ♪ aflac, aflac, aflac! ♪ [ both sigh ] ♪ ugh! ♪ you told me he was good, dude. yeah he stinks at golf. but he was great at getting my claim paid fast. how fast? mine got paid in 4 days. wow. that's awesome. is that legal? big fat no.

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s&p biotech sector fell 5%. that was yesterday. it's down 14% the next month. what happened and will the selloff continue? joining us is jason -- i could call you colbert. >> jason cole-bert. >> are you going to be a right wing jerk or a biotech analyst. >> just a biotech guy today. >> what do you make of all of this? >> yesterday the market selloff in biotech was pretty severe. a lot of it had to do or the trigger had to do with pricing

concerns over sovaldi. it was talked about as one of the most expensive drugs for hepatitis c. it is not more expensive than some of the other drugs currently used by with ire efficacy. but the reality of the costs associated across a large population clearly has governments concerned. >> they have to get regulated and the prices have to come down. >> that's the concern. that's triggering the selloff. it qcapitulates to this kind of pressure. >> when will we know? >> we won't know for some time. i can tell you based on the feedback i'm getting from the ceo of the all the major biotech companies, they're going to fight this tooth and nail. the drugs aren't regulated in the united states, not drug pricing. >> right.

>> as long as there is value in the drug, i think we're in a sustainable position. >> we had 5% alone yesterday. i don't know what's going to happen today. >> will we still have room to come down more? >> the voracity was scary. they tend to overshoot one way or the other. i don't know if we have seen the bottom yet. >> what will this mean for the ipos? >> good question. with 37 last year. more and more lined you. people are really concerned. >> does that mean the window is closed? >> no. i don't think the window is closed. the number of new products we're seeing. again, the value they are creating in the marketplace is there. so i think dollars for investing are there. but people are going to be pressuring the valuations of these ipos as they come out. >> biotech played with obama, right?

they were -- they did a deal for obama care. biologics? >> we're going to see. >> it's a small molecule biologic. where do you draw the line? tevex carpaxone is claiming it's a biolodgic. they are petitioning the fda to say, hey, these generic formulations are not, in fact, the same drug. if they are successful in that endeavor, it could have a very significant impact on the sector. >> object. >> more importantly, let's look towards vertax and see what happens with cystic fibrosis.

it could trigger a summer rally, typically something we don't see. >> we appreciate it very much. hopefully we will see where it goes today and into the future. over to kayla tausche. >> the first was trading business. i asked mary ann lake if she could identify a reason why it was down 21%. you saw a lot of other units down as well. she said there was no discernible reason. it happened across all products, all geographics and was a function of activity. she said you're going to see some of that softness until april or through april. unfortunately it doesn't seem like the worst is over quite yet. the other business is mortgage. 83%. that is a huge drop.

here's what it does on return on equity. 3%. compare that to asset management, 20%. that's what is bringing it down. jamie dimon was asked about flash boys and whether the market is rigged. he refused to comment on that. mary ann lake said passwords were not couple miced. and they asked if jamie dimon was still having fun. he said there are challenges always. there are secular shifts but we are innovating and i still enjoy coming to work every day. that's the latest we have. i'll send it back to you. >> thank you, kayla. >> cramer's take auto yesterday's selloff. "squawk box" will be right back. >> it's another big week on "squawk box". monday, earnings from citi. on tuesday, the stanley cup is

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let's get down to the new york stock exchange. jim cramer joins us now. i'm just -- i don't know what to think, jim. i -- there's a lot of reasons to say this is not going to lead to anything more serious but the market does what it's going to do, doesn't it? that's where i get a little scared. i don't like fridays either after a thursday sell-off. and then mondays are scarier. >> right. let's go back to what jeremy siegel said and i always bridle when i hear people think he's a per ma bull. in march 14th, 2000, "the wall street journal" technology ripe for a devastating downturn. you take a look. the downturn began march 15th. was the guy a clown?

the guy was -- he nailed it. i was listening to your interview and if he said we're in the same situation as 2000, lots of insider selling, companies that were valued way too high, then i would have -- caught my breath and said this is the end. the biotech fellow we had, biotech they flooded it, too many deals. i think jeremy siegel, give him his due. he nailed the top in tech and he could have said today, listen, this is unsustainable and we're ready for a devastating decline and he didn't do it. the guy is real good. let's get away from the idea he's not. >> well, if the market is at all-time highs and the guy was bullish, it's hard to say you were stupid. it's weird. that's what i've said. if you stay along the entire time and at a new high you were right more than -- >> look, as long as interest rates go down we're in trouble. it doesn't make any sense. great jobless number yesterday. >> it does allow the fed to get out without too much trouble

maybe. >> the fed could sell a trillion bonds. everyone wants out. they want to go into bonds. jeremy was right. out of stock into bond trade. i don't know. maybe i've read him too many times, maybe because i'm from philadelphia and he lives right next to my dad but i think the guy is really strong. he did not say get out now. >> i remember where we picked him up that's right. we picked him up when he did the show down there. >> we went with mark. >> philadelphia yeah, we were covering the u.s. open and he was one of our guests. i know exactly where he lives. that's funny. see you in a couple minutes. >> coming up, teenager lexi thompson won her first major title at 19. think they qualified for the u.s. open at 12. second youngest winner of a woman's major, she joins us right after the break. ght after. .

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lexi thompson is the second youngest major winner in lpga tour history at just 19 years old, won the kraft nabisco championship last weekend for her first major. she joins us now. thank you. that's the dinah shore, isn't it? at mission hills, right? >> yep it's at mission hills. >> i know where it is.

i look at how things have been progressing here. it's like right on schedule for you. you're 15, you turn professional. made some cuts in 2011, made more in 2012. made 19. 2013, 24 events, 19 cuts, six top tens, four top fives and now you won a major already in -- this is just going as expected is it not? >> yeah it's been going pretty well for me. i've worked really hard my whole life but in this offseason i worked on getting my game more consistent especially in my short game. i'm really happy it's showing and paying off. >> i saw -- i never use the term bucket list but want to sky dive, play pebble beach. you've played pebble bauch before, haven't you? >> no. i haven't played pebble beach, to. >> what? >> even joe has played. >> many times. that's a good thing to want to do because it is -- it's like the greatest place. you know, if you like someone -- some place more than pebble it's

just a matter of opinion at that point. up to this point, your biggest star struck moment it says here was taylor lautner and jonah hill. an drew ross sorkin is sitting right across from me, the author of "too big to fail" and the movie, new york, new york times columni columnist, would you like to update your star struck moment right now. >> i might have to now. >> thank you. >> who do you -- did you watch yesterday, the afternoon seemed much harder? have you played augusta yet, lexi? >> no. i went there a few years ago to follow a practice round. i haven't played there, though. >> that's an interesting place. do you -- do you have a pick? do you have a couple people you think? adam scott. it's weird that adam and bubba are right there and they're the last two clamps. like either one of them at this point? >> well adam scott is one of my

picks. or phil or freddie couples. like my top three. >> phil seems like he's playing okay. just made a couple of mental mistakes yesterday. you know, there is a little bit of a controversy that you bring up and i think it's interesting on golf digest and we have that, women have been on -- i mean annika had to have been on a few times. i figure nancy lopez too. wayne gretzky's daughter is on there why? because she dates dustin johnson? what's the connection to golf there? must be dustin, right? >> yeah, i guess so. but, you know, i think the last women's golfer was in 2008. i mean i guess i'm a little disappointed with the cover but it was a beautiful piece. she's a beautiful woman. but hopefully we'll get a golfer on there to show and grow the women's golf. >> kind of interesting. lexi, we got to end it and the masters will be on later today.

all of us were watching michelle wie as the phenom and i don't know, you kind of snuck in there and i think we better keep our eye on you at this point. appreciate you coming on today and good luck the rest of the year. heck, you can still do the grand slam theoretically, right? >> i'm going to try. thank you. >> thank you. >> have great weekend. we'll see you monday. ♪ ♪ i can't stand losing ♪ i can't i can't ♪ i can't stand losing >> good morning and welcome to "squawk on the street." i'm david faber here with jim cramer. we are live from the new york stock exchange. carl quintanilla has the day off. well, let's start off with a look at the futures after yesterday's very bad losing day. the s&p as you can see there, does look poised to open a bit lower. dow also as well, of course, as the key market these days at nasdaq. there's a