good morning. i'm kayla tausche. carl quintanilla is off today. joining us this morning, is roger mcnamee founder of elevation partners and with us this morning john steinberg, ceo of daily mail north america will join us for the hour. jon fortt is here as always. a record day for apple. the company saying it sold a record 10 million iphone 6 and 6plus models over the weekend. tim cook saying, quote, while our team managed the manufacturing ramp better than before we could have sold many more iphones with greater supply and working hard to fill orders as quickly as possible. shares of apple trading a little bit higher earlier today but now those shares have turned negative by a fraction of a percent. roger, let's start with you because you have been very positive on apple for some time. obviously the record number is a good print for the company. but tim cook saying they could

have done better. what do you make of it? >> well, just think about that for a moment. 10 million units of a $400 device roughly sold over one weekend. i mean that is truly staggering. and i think it really drives home one of the core points i would like people to understand about not just apple but about the cell phone business. this isn't just a huge business. it's a mature business. everyone's had their first smartphone. everyone who's going to get one has their first one. people are now on their second or third. so the competitive forces that matter now, are changing. . >> what matters about what apple did is not the 10 million units sold, although that's really impressive, but rather what they've done in the operating system, ios 8 in the new generation, putting in things like the ability to do payments directly off the phone, which i think over time becomes a huge, huge deal. >> over time is the operative

phrase right now. that's what a lot of analysts are looking at. when you think about the manufacturing ramp, we'll get access in 20 more country ps next week and china in q4. does the staggered rollout help apple? >> that's what i was saying last week when people were freaking out over the delayed china launch maybe it's not a bad thing. they can reallocate that supply to some launch countries they have and they tend to be supply constrained. i noticed lines outside several stores on saturday and sunday. reports of lines here outside the fifth avenue store on monday morning. showing that apple has been able to resupply some critical locations. just think of it, i mean 10 million over one weekend. apple's goal was to sell 10 million the first year the iphone was out. that shows yes some maturity and roger is right, the question now is, we are in the post-smartphone era where the money will be made on the services and accessories that connect to smartphones. can the apple watch surprise us? a lot of analysts have a 10

million first year target on that. can apple pay get track? >> i agree, another leg up on this. the 5s, 5c launch was 9 million units. gene munster has a note out saying that may have overestimated because he thinks 3.6 million of the 5c unit mass vi sat in the channel. i suspect as a supply contrants is with the plus units. i looked all over this weekend and i did see people have the regular size and their phone, their hand, the regular size 6, very few actually had the plus in their hands this weekend. >> roger, tim cook called ios 8 the biggest thing since the app store. do you think the software component of this is just as important and do you think that it's as markedly different for the company as the app store was? >> i think that it has that potential. the 10 million units is at least an indication that consumers expect ios 8 to really change their lives. the security feature of having thumb print is wait that you get into the phone, this notion that

you're going to be able to pay bills, that you're going to be able to securely capture and then share your medical information. this idea that the phone now is so deeply embedded in your life, that you're going to trust the most important data in your life to it because it turns out the phone is a lot more secure than a credit card, it's a lot more secure than a paper medical record and so i think apple, weight real what's really interesting, the changes apple is putting in place are ones that will be hard for android to respond to. the android operating system is less sophisticated. google is very smart. they will come up with ways to respond but i do think that apple has a giant advantage right now. and the 10 million units to me says consumers are giving them the benefit of the doubt on all of the new things. >> it would seem, roger, we're going to continue getting a steady stream of this data from apple so we'll keep this discussion going. >> and it's still a cheap stock

relative to the s&p 500. that's the key thing. >> you've been touting this as a value play even though it's been up. >> exactly. even though it's at its high relative to the s&p 500, it's extraordinarily cheap. you know, to me the risk in the market now, is not the valuation of apple or the valuation of some of these other stocks but rather the externalities, the world is a scary place and we do not have any control over a lot of the events going on. >> one big event, of course, roger was that alibaba ipo on friday. let's check in on shares of that company. the stock is pulling back a little bit today, down about 4%. $90 and change after gaining over 30% on friday. but the company is now officially the biggest ipo in history. it raised about $25 billion. alibaba executive chairman jack ma spoke to us friday here's some of what he had to say. >> as always i believe that

customer number one, employee number two, and shareholder number three. but today, what we've got is not money, is the trust from the people. millions of small business shareholder. i'm very honored. >> the company does have a lot of money, roger. when you think about the potential for a deal landscape with a few tech war chest from the likes of alibaba, $16 billion or so in cash, do you think that there's going to be a lot of competition in the valley from some of these other longer term companies? >> i look at alibaba and i think it's going to be very hard to compete with them in silicon valley or anywhere else. the company runs more revenue through its various subsidiaries than the sum of amazon and ebay. and that -- i mean the scale of the thing is huge. what's really powerful is that china had a very tiny consumer economy before alibaba and it's skipping many stages.

it's skipping the english notion of the high street. it's skipping the american notion of shopping malls. and skipping right to alibaba and on-line. and it's doing so in a very efficient way. alibaba does not have to buy the inventory. it doesn't have to own the warehouses. that situation has made it much, much more profitable, more than ten times more profitable than amazon. >> yeah. >> as a result, i think from an investors' perspective this is -- it's well deserved it's a big ipo. how the valuation shake out we'll see in time. >> roger -- >> jon, i have to bring you in here too, i have to bring you in here too, jon, i mean alibaba, amazing company, great valuation, but it's a chinese company that's very different from any other company that we've got also. because they've got this safe base in china where others can't really go and compete with it and i think there's a real question of how successful they're going to be with all the ancillary projects outside of

china we're kind of expecting them to dip into. what are your thoughts? >> i think from a valuation perspective let's start there. it can trade up to $110 a share before it has the same multiples facebook has. it's growing fast. until the core business until you get to the 110 level, you're comfortable and not worried about the externalities being possible weakness in the u.s. stuff and the risk of what could jack ma do. do an ali pay. it's cheap and has a reasonable level and not trading up like crazy. >> let's be clear, china is huge. it doesn't matter what they do elsewhere. >> because you don't have the growth level in an ebay you have in an alibaba. there's no commerce for -- amazon trades 70 times forward earnings. hard to find the right comp for it. >> ha was one of the questions investors had during the road show. how do we value this company. roger, as a derivative of the

china play, one of the reasons alibaba is down today because you have the finance chief in asia dampening talk of possible stimulus as the economy in china is thought to be slowing. how much of a risk is that china economy? >> i guess we lost roger out west. >> on that point, i was in the uk last week and it was amazing how much everybody was talking about scotland. i think alibaba would have had the same amazing ipo that it had on friday rarlless but might have been damnd today. today you're seeing regulatory dampen a little bit. it pulls it back a little bit. >> roger, your thoughts on that? i think we have you back. >> i think the key thing here is china is at the very beginning of the consumerization of its economy. it doesn't matter what happens to alibaba outside of china as long as they execute well in china and the government is comfortable with the notion of having some foreign shareholders

opening shares in the company. as long as those remain stable the company is well positioned. it will go up and down day to day, when it goes down that's a chance to buy. when it goes up you can decide whether to sell. >> wall street is having to get familiar with exactly what it mean to own one of these companies, so we will continue to talk about that from here. roger, we appreciate you being with us this morning. >> always a pleasure, kayla. take care. >> thanks so much. keep it here. we're talking to the former ceo of alibaba.com in a cnbc exclusive coming up later on this hour. finally, facebook owned oculus getting closer to a full consumer release of its headset. it's expected to go on sale in 2015 after selling about 1,000,000 development kits over the past few years. the company showing off a prototype with improved display, motion, tracking and audio features that brings the headset, what the company calls, quote, much closer to a finished

product. jon fortt, you tested the samsung version. but oculus doesn't have a fully banked consumer version of what it's developing. do you think they're close? >> i think they're close. oculus is working on the high-end version of their hardware. the samsung thing, more of a consumer, you can play with it. put it on see the pixels. doesn't feel like virtual reality in the truest sense. but what i think what we're seeing from oculus now with this new unit they've put out, 360 degree motion tracking to turn around completely. we're getting closer to a product that's going to open up the imagination of brands and high-end consumers particularly in gamingp. >> gaming absolutely, i don't know about brands. i was at maker fair this weekend, saw someone walking around with a an oculus rift on their forehead. as the ft put it this morning there's a killer use case for it. there's none now beyond video games.

that's not a facebook sized market. >> killer use case for drones? you've become something of a gadget guru, the fact you're not bullish is surprising to me. >> i don't think drones have the broad applicability that kind of a social network or messaging platform. for deliver this he do. oculus has about as big a market as the drones do but i'm not sure how big that is. >> beginning to capture the interest of those parties. they've got to develop on top of it to be worth anything. >> we will end it there. we also want to get a check on the markets right now. trading into the red. we did get poor numbers for existing home sales and the sentiment out of china that possible stimulus, not going to be much more after last week's infusion into the top five banks. that sentiment is adding to the overall negative sentiment on wall street. right now the dow down 59 points. that's about a third of 1%. the s&p 500, is back lee below the 2,000 level. the nasdaq composite down by

about 5 points -- 52 points. part of the reason the nasdaq is slipping, yahoo! down this morning after getting downgraded at both bank of america and you can see that stock is down about 6%. bernstein also taking its rating down on the stock. the firms are noting now that alibaba's ipo is over, that could mean uncertainty for improvement over at yahoo! and one thing that we've noted too is, because you can't short alibaba stock, some investors have been shorting yahoo! as a potential hedge against that stock. so one thing to keep in mind there. shares of amazon, also slipping this morning after workers at five amazon centers in germany walked out on a two-day strike in support of a collective wage agreement. amazon shares trading down by about 3%. stock at 322. but no doubt that is going to be contributing to the nasdaq fall as well. when we come back our coverage of alibaba's record-breaking ipo continues. we have an exclusive interview

with the former ceo of alibaba.com. after a record weekend for the iphone 6 is now the time to buy or sell shares of apple. we'll ask kevin o'leary in a few minutes. bankers doing well friday, raked in $300 million in underwriting fees from the mega ipo out of alibaba. one of the top bankers directly involved will join me later this hour. "squawk alley" is back in just a minute.

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we hope in the next 10 to 15 years the world changes because of us. we witness to be bigger than walmart. it's not the size. we want to learn from walmart. they changed the business last century. we hope 15 years later they say this is a company like microsoft, like walmart, they changed and shaped the world. >> that was alibaba founder and ceo jack ma here at post nine on nine on friday as it debuted here at the new york stock exchange. it became the biggest ipo ever. how did the company achieve growth and do traders expect it to continue? joining us for an exclusive interview is former alibaba.com ceo david wei, founder and chairman of vision night capital. david, thanks for joining us this morning. >> thank you.

good morning. >> first of all, your overall impressions from not only the comments from jack ma he wants to be like microsoft, ibm, and walmart, but your impression on the ipo on friday? >> well, that was a historical moment and it was so exciting in my lifetime. i was so honored to be part of the history. i was with alibaba for five years as ceo. that's about one third of alibaba's history. i think maybe jack used the wrong example. probably alibaba will more thanes just microsoft and a walmart, but as probably what they did in the history, reshaping the world, i agree with that, but i think today, the model case for alibaba is no longer microsoft anymore. >> there have been questions, david, about jack ma's business strategy and about potential transparency, his decision with ali pay. you used to run a division of alibaba that the company pursued a buyout of about two years ago.

it eventually ended up happening. at any point in that structure of that deal, did you feel like he wasn't being exactly transparent with you? >> well, i think most people concerned about ali pay issue is the corporate governance of alibaba group. however, personally i think in my opinion, it should be considered as the regulatory risk for investing alibaba. because at that time, what jack was facing is whether he risk the licensing for ali pay or he sticks to the corporate governance. at had that time there's no direct answer. a lot of people consider the corporate governance issue. i think the issue investing in a company in china. where was alibaba running alibaba.com we have seen great transparency at the hong kong company with governance from the board. >> david, what do you say to investors who wonder how can i

trust the chinese regulatory regime, there's not going to be another ali pay situation down the line that's going to be to the detriment of overseas shareholders? how do i know jack ma himself won't get to be such a prominent figure the chinese government won't want to take him down a notch? >> there are two sectors in internet. one, is internet as a media. the other is using internet as a financing or banking. these two, i don't think in the foreseeable future, the chinese government will deregulate in the control of media and financing. so ali pay was considered as part of their internet financing which is very sensitive sector. however, the major business, the core business, of alibaba group today, is actually e-commerce. it's irrelevant to media and financing now. which are very open to foreign investment. in other words, even amazon and

ebay today are fully licensed and operating in china, unlike other international internet companies we see with different restrictions. the pure e-commerce player should enjoy a pretty fair playground in china. >> you know, david, is it more than fair? how excited and how much in the same kind of corner of alibaba is the chinese government? i mean, what is the relationship like there? how much are they kind of pushing for the success of the company? >> well, i think it should not be pushed forward for alibaba. i think it's jack ma and team making the history. in other words, i personally didn't see any direct support from the governments for this huge success. in other words, the government tried to support a number of government-owned internet companies. i didn't see any success of that. it's purely financed by products and the foreign investments. however, e-commerce sector which is generally creating a lot of jobs, improving the regional

efficiency in china, all these are in favor of chinese governments. >> david, finally, you've remained close with jack ma. what do you get -- what sense do you get about where his intentions of expansion are? people expect he might do deals maybe here in the u.s. or go to india. where do you think that he will go next with this company? >> every time when jack ma and his team consider expansion, they will always put user and customer on top of everything. i believe alibaba group will not do an expansion where they cannot find value creation in the local market. so wherever they can find additional value alibaba can bring to market they will probably do it. however that does not mean alibaba will not do investment strategically in different countries, for example, to bank technology, to bank business mod until u.s. or europe or in southeast asia or asia in general. these kind of small but

strategic investment will continue. a big operational expansion, i don't think is what happened in the very near future unless, as i said earlier, there is a great value creation opportunity alibaba can bring to local consumers. >> well, we know one thing, we will have our eye on this company for some time. david wei, thanks for your time this morning. >> thank you. >> investing in a post-alibaba world. a top bc will tell us about risk and where he's putting his money right now. keeping our eye on the nasdaq down over 1%. quite a bit more than the dow. we'll be right back after this break. your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics.

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still keeping an eye on alibaba after its public debut on friday. it's down quite a bit this morning actually. more than 3%. broke below $90 a share earlier this hour. a closer look at what this ipo means for the tech sector at large. we have a managing director with

menlo ventures. thank you for joining us. when i saw you a couple months ago we were talking about the ipo market, the big ones coming down the pike and how that might affect the outlook for a lot of the companies you've got on deck and others in the valley ready to go public. how does this affect the outlook and the plans, the ipo window right now? >> look, i think the alibaba ipo is a water shed moment and does hope up like the facebook ipo opportunity for a lot of ipos it go out. a bunch of companies on file, including some in our own portfolio and we're excited for the second half of the year. >> i want to bring up a bill gurley quote from just a few days ago. he talked about the risk that a lot of companies are taking in the market, saying in silicon valley as a whole, the ven nur capital community start-up community taking an excessive amount of risk right now, unprecedented since '99. is that true in your view? >> jon, one of the nice things about being in a firm that's been around 38 years, we've

backed companies over up and down cycles. while we are in an up cycle nowhere close to the top, i think what's going on is like a block party versus a city wide party. there are pockets of exuberance but for the most part i think it's fine. >> you compete with benchmark capital. whenever i see a venture capitalist talk about prices being high or low, there's a little bit of a flanking move or motivation going on there. i mean benchmarks got their take stakes in the stuff they want. they're in uber. how much do you view that as competition putting that out there? >> asking a venture capitalist about valuation is like asking a barber about a hair cut. don't be surprised if they tell you it's too high. after doing business in silicon valley it's not money, it's to the greed, it's not love that motivates people but it's formal, the fear of missing out. what happens if you are not in uber or one of the hot companies

venture capitalists feel the need to compete and be in there and bill is trying to tamp that down. >> it's ironic to see comments from vcs talking about how valuations are high because this time around a lot of companies aren't going public. if the bubble does pop, if that silliness does end up ending it's the portfolio managers who are going to end up with a lot of goodwill they're going to need to take on some of these investments. how are you hedging and preparing to make sure that you don't get hurt when this eventually stops? >> well, what i've learned in ven actual capital is the best way to minimize the downside in a down cycle is extract all the up side in the up cycle. we are continuing to make our companies grow. a few companies that have grown 300 in the last couple months an trying to make sure they build sustainable businesses. we know the party will end. i don't know when, but it will. when it ends the people who are prepared. as i say, it's not about predicting rain. it's about building an arc.

>> all right. well, ven ki, thanks for that perspective. what's your thought about 10 million first weekend number on iphone? are you impressed? surprised? >> i'm very impressed. i think they have the size right and i think apple pay is a killer feature. i think apple is back and don't underestimate the iwatch either. >> all right. i think he'll be buying one. >> i think it sounds like it. thank you so much. thank you, jon, for bringing us that interview. bring in simon hobbs, getting the european close just a couple seconds ago. simen. >> >> the most exciting thing is to know the germans are opening their checkbooks and spending $25 billion here. ziemanns and merck. that was the big corporate headline overnight. beyond that i'm afraid back at home all a little depressing. we've extended our losses through the european session. in the united kingdom what used to be the bluest of the blue chips tesco announced it has an accounting problem that it's overstated its guidance for the car by about $400 million.

this is now the third profit warning they've had in two or three months. absolute catastrophe for the stock. stock down 46% during the course of the last year. tesco used to be one of the companies when i was growing up. look at it now. the other big news, and this is for everybody out of china, is this concern that we have about slowing and specifically at the g-20 in australia over the weekend, the chinese finance minister basically poured cold water on the idea they might further stimulate the chinese economy with extra measures. prices have slipped below $80 a ton for the first time in five years and see the effect that's having on the mining stocks listed in london. if you're traveling through europe i'm afraid the air france strike continues, despite an offer from management to delay the introduction of the low-cost operation. the pilots have refused and they remain on strike. there's big disruptions. be careful. and if that wasn't enough, what a stunningly depressing performance from the ecb's mario

draghi in brussels before members of parliament suggesting the eurozone recovery is losing momentum and risks to the economy remain to the downside. he's still got things to come through like cheap cash for the banks in december or the asset backed securities buying program. but for everybody else, it's well, mario, where's the qe. back to you. >> all right. thanks, simon. coming up, a record weekend for apple. over 10 million iphones sold. shares are positive this morning. where is the stock go from here? "shark tank's" kevin o'leary weighs in next on "squawk alley." opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask?

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welcome back. it's been a weekend of records with alibaba's impressive debut on friday, biggest ipo ever, and apple's iphone sales topping 10 million this past weekend also. joining us is kevin o'leary, o'leary funds chairman and "shark tank" investor. tell me, do you buy alibaba, lots of growth, got china, but no dividend? do you buy apple, dividend but near all-time highs or buy neither? >> right now you don't buy alibaba. you're selling to the strength. most institutions or many i know have taken the opportunity to lighten up here. it's trading near the high end of its range, very high

multiple. you have to remember something about the ipo people forget. about 50% of the allocation went to just 25 accounts. that's a very, very concentrated amount. so to the extent that you can get any allocation, it was in very few hands. so if you're an institution right now, and you want to get it balanced into what would be global internet exposure, global financing, you're going to take a 5% waiting in this name. you wait until it trades down into the 80s before you buy more because if you're a long-term holder you can wait this out. this is in the euphoric stage. it's very expensive stock and as you've pointed out, has no yield so it's going to be very volatile when markets have any kind of volatility associated with them. any stock that doesn't pay a dividend has accelerated vol. >> you've taken a lot of companies public, watched a lot of ipos and been involved with investors taking their companies

public. is there a gestation period for first year or so where there's too much volatility or softness because of either existing holders selling out or people waiting for the stock to go down before buying? is there a period after which it's always safe to buy ipos or at least stand on the sidelines and watch? >> well, i like to wait at least four quarters of earnings. in other words, to see what the pattern is going to be. i'm talking now as an institutional investor. you know, if i don't get ap allocation day one, and i decide that i'm going to put a 5% waiting into a name that would be a full waiting and mandate that had a technology bounce to it, there's no need to run into the stock right now. it's trading way over the market p/e. there's a gestation period. you have to realign the investors that hold it after the lockup clears up and the weird twist on alibaba with a holding company called yahoo! which nobody knows what they're going to be doing with their holding.

they could be selling into this. to me yahoo! is a flailing entity with no operational business model that may in the worst case sell their stock and use it to buy their way out of trouble. that's not necessarily for me good as an institutional shareholder. >> can't let you get out of the apple question. what do you think of it given the huge weekend they've had? lots of profits in the iphones. do you buy or hold off? >> i'm fully weighted in apple. there's a stock that fits all my metrics. pays dividends, trading at the market p/e, not overvalued. my anecdotal evidence like everybody else you've been talking about is extremely positive on the sell in on this platform. they are sold out of the iphone plus. there is huge demand. i predict 12 mill on the preorder basis. this is going to accelerate earnings on the platforms they sell into. in other words all the software components. i like apple for the next year. you can question what the long-term prognosis is as it

slowly drifts into becoming a consumer electronics company. these are fantastic numbers. let's not forget the nice fat juicy dividend growing. what else is tim cook going to do with the money aside from sending it back to me. >> coming out of the weekend this was flat. seemed like there was so much outperformance. it is at the market p/e. why do you think it's not above it? is it concern about chooip? what is the concern? >> we haven't seen the china numbers on the iphone release. there's always been, always been a sell on news with apple. ever since steve jobs used to sit on that stage in his t-shirts and say just one more thing. after he said that, the stock would always sell off. i think that's just the nature and the rhythm of this name. but nobody can question the power of this platform. i mean, my goodness, it's -- i mean just look at these numbers. people are talking about 8 million a couple quarters ago. we're past 10, on our way to 12.

nothing but success here. the only thing you can question which is on my mind of concern still, i like to have something to worry about, this larger format ended up being a much larger part of the preorder. the iphone 6 plus. does that hurt tablet sales. it has to in my view. >> sure. >> i don't know how badly that's going to happen yet. i have to be a little concerned about. >> i called -- here's the thing. i was in beverly hills shooting "shark tank," went to the store, looked at the format and i couldn't buy an unlocked phone there. we can't state side by an unlocked phone yet. i called up to canada to the eaton center where they're selling canadian phones unlocked and ordered my phones there. i'm getting three phones, two of them first. >> kevin, there are a number of people we saw buying unlocked phones in new york. so maybe you'll have better luck next time you're on the east coast. kevin o'leary from "shark tank" thanks for joining us. >> take care. >> when we come back, alibaba's ipo wasn't just great for shareholders.

the bankers that took alibaba public earned nearly $300 million in underwriting fees. one of them will join us live in a few minutes. but first, rick santelli in chicago. what have you got your eye on today? >> today we're going to talk about how all of the developed economies, the big economies, fit into one global picture. i asked martin feldstein last week if slowness in europe or china would cause our central bank's activity in terms of tightening to change he said no. i'm not sure i agree. and the big number for today, 7980. what does it mean? you'll have to show up after the break. location. location. (shouting) location. here's the location that matters the most. here. or here. or here.

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coming up the biggest ipo sending shock waves across the market. your alibaba playbook. a heat deed bait over the newest stock on the block. the iphone 6 numbers are out and surprised the top ranked apple analysts on the street we'll ask tony if he's singing a different tune today. former nfl wide receiver joins us live with tough advice for the nfl and its players and also who he thinks is acting like a coward and who he says needs to stop complaining. we'll talk about the markets too. straight ahead on the half. >> i don't want to miss that. let's get to the cme group and rick santelli. what does that number mean? >> what does that number mean? 7980 price per ton on iron ore

with respect to going to china. the reason it's significant, the biggest drop we've seen in a while, but if you look at the charts, it is the lowest level in five years. and that is significant. we know that we've been watching another what i call the sentinel commodities gives you a forward glance and copper has been slippery. does this guarantee global growth is going to be, you know, an issue that will give rise to looking at more of the industrial metals? i think so. but it's even more than that. today obviously china news was big in the marketplace. we had a finance minister in the g-20 in australia say something along the lines of, you know, questioning ultimate growth. but we already know much of this. industrial production for august on a year-over-year basis dropped down to under 7% in china. that's the lowest levels since the credit crisis. with that iron ore price what i'm trying to put together is, is trying to square what martin

feldstein said in an interview i had with him last week. many down here believe he's a pretty sage follower of market policies and fed policies and he didn't think upon questioning that the ultimate tightening or raising of rates or ending of zero interest rate policy would be much affected by what happens in europe and china. i said asia. include japan as well. but here's the issue. maybe janet yellen isn't going to be looking at the data and curtailing any of her time line, whatever that may be, but how those data points show up and affect the u.s. economy is definitely something the fed is not going to look the other way with. of course. and another issue, when we were talking about housing today and i had david dodge on former bank of canada governor when i was trying to compare and contrast what's going on with the lofty prices and potential correction of their housing market, the real issue is you've all e-mailed me and were spot on. in this country, the main issue

with housing that brought us down in 2008 was the credit side of housing. not the price side. and they are totally different. it's finance and that will bring us to a bunch of topics this week like reverse repos. we're going to talk about why that is an interesting strategy for the fed, but maybe a little late in the game and we'll go over all of those issues as we move closer to the end of zero interest rate policy. kayla, back to you. >> rick, reverse repo is a market that's in transformation right now. we will see what happens with more fed involvement. thank you so much as always to rick in chicago. let's send it over to dominic chu at headquarters for a market flash. >> so we're watching the momentum stock here, tesla. the stock is moving lower after a cautious note from jpmorgan citing the valuation on the stock and possibly execution risks going forward. the stock as you can see there currently down by 5% in your session lows. year to date we should point out the stock is up about 65%. still any time tesla drops by 5%

it does get traders to notice. back over to you. >> certainly does. when we come back, bankers making a pretty penny in alibaba's successful ipo. those six companies raked in more than $300 million in underwriting fees. one of the lead bankers on the ipo will join us next on "squawk alley." the lightest or nothing. the smartest or nothing. the quietest or nothing. the sleekest... ...sexiest, ...baddest, ...safest, ...tightest, ...quickest, ...harshest... ...or nothing. at mercedes-benz, we do things one way or we don't do them at all. introducing the all-new c-class. the best or nothing.

take a look at pit pictures. activists gathering in the financial district. they plan to stage a mass

sit-in. the idea they're upset about climate change and wall street financing. climate change. they are dressing in blue. that's their plan to show solidarity on that. this comes after sunday's people's climate march. so protests in wall street yet again. this time about climate change. let me send it over to kayla. >> thank you so much for that. at post 8 where alibaba staged its massive ipo on friday. behind the scenes of that mega deal, were six banks leading the charge to price it and have it start trading on friday. up 38%, obviously a very successful debut. we're joined by the head of internet investment banking at credit suisse one of the lead underwriters on that deal. thanks for joining us. >> thank for having me. >> it was textbook deal on friday. jon fortt called it a thing of beauty that afternoon, up 38%. the question is did you leave money on the table? what's your perspective having

been behind the scenes? >> we have a special relationship with alibaba group and our objective was to satisfy management objective and we're very pleased with the market. >> when you look at it today and the overall market there is some idea that maybe a $200 billion company going public was a sign of the top in the market. you talk to a lot of companies that are talking about going public. you talked to investors all the time. is there a sense that we are at the top of the market that there could be some air coming out in the near term? >> look, i'm not the market expe expert. i'm sure there are a lot of people on this floor that can talk better about the market. i can talk about technology as a whole and i've been spending time with a lot of technology companies. i think we're in a special time. i think that i like to say, golden age of technology. the cost of company creation has come undone dramatically. as a result, a lot of exciting companies are getting created every day and disrupting very large companies. and i think investors are looking for the he companies th

will gain market share. i'm bullish about my job prospect personally and overall technology market. >> the cost of creating a company might be coming down but the length of time that these companies are spending in the private market is going up. what are you seeing in the pipeline in terms of some of these bigger companies that are either choosing to grow to a much bigger scale before going public or looking at the market and saying now is the right time to go public. what does the pipeline look like. >> the pipeline looks great. one of the things to support your question, average companies waiting 7 years, since founding to go public. i think that one of the reasons the companies are waiting longer is not they're trying to time the market but they want to grow and they want to have the flexibility to grow, you know, being a private company. because when you become a public company you have shareholder who try to dictate your short-term decision making. tremendous amount of capital available for this private companies to grow. we're seeing a lot of companies companies in mobile commerce

space, cloud services. we see a lot of pipeline and we're very excited about it spoo wh . >> when you get to the conversation of a potential ipo for one of the companies, the new york stock exchange has had a very successful deal for twitter, successful debut for alibaba. are they the only game in town right now when it comes to big technology ipo snz. >> that's a great question. i think, you know, look it's a cycle. nasdaq had a good growth for a long period of time with all the technology companies going to nasdaq. i think new york stock exchange has done a tremendous job growing their business in this category. and they have done a good job as you pointed out. i think look, different companies have different preferences. you know, we are agnostic and we work with both of them. >> quickly, you don't just do ipos. you do m&a. alibaba will have more than $12 billion in cash. do you expect them to be a major deal maker and do you expect other companies in the valley to respond? >> so that's a great question for alibaba to answer rather than me.

but, you know, i think look, technology is a fast paced industry. innovation is happening and a lot of companies are doing deals. you saw some of the bigger companies have done some deals. i think, you know, strong capital market is also help m&a market. so we focus on serving our client based on their need. >> you'll be busy. thanks for being with smus i like to be busy. >> head of inter net investment banksing at credit suisse. >> makes a lot of money when he's busy. >> the nasdaq taking a hit this morning near session lows of 4518 at this hour. we'll take a look at the names dragging it down when we come back. there's a gap out there. that's keeping you from the healthcare you deserve. at humana, we believe the gap will close when healthcare gets simpler. when frustration and paperwork decrease. when grandparents get to live at home instead of in a home. so let's do it. let's simplify healthcare. let's close the gap between people and care.

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and make your business dream a reality. at legalzoom.com we put the law on your side. i'm bertha coombs at the nasdaq. tech stocks getting hit today and led lower by the small caps the russell 2,000 off this morning. the biggest decliner. it's down. investors keep staying away from there. yahoo! the biggest decliner at the nasdaq, both merrill lynch, b of a and also bernstein downgrading the stock. a lot of uncertainty now that ipo from alibaba has taken off. what's going to happen with that cash? where's the valuation is what analysts are saying. the big cap drags all of the big

fames getting sold off. they're responsible, these five for, about 15 points to the downside at this point. the one thing holding things up here, if at all, sigma aldridge on a takeout by germany's merck for $17 billion. guys, back to you. >> all right. thanks so much for that, bertha. of course, nasdaq on pace for its second straight decline in two days. so we'll continue to keep our eye on the market. also, some interesting developments down here in this region. protests about climate change coming toward wall street. this is an area of new york that has become familiar with protests. but not on this topic. >> yeah. >> lot of protesters dressed in blue. the idea of the protest is that wall street is responsible for the business changes that have impacted climate change. everyone dressed in blue to make a flood type motif. >> #floodwall street and this follows yesterday more than 300,000 people on a two-mile match including leonardo dicaprio, mark ruffalo, trying

to bring awareness to this issue. will be interesting to see. we can hear in the background right now some of the shouting that's going on nearby. >> tremendous police presence all around here as well too. >> all right. with that we will send it back to headquarters where scott wapner is standing by. you will be talking about the markets and where they're going on a second down day for the nasdaq. we'll toss it up to you. >> developing into as nasty day for the nasdaq. welcome to the halftime show. let's meet today's starting lineup. joe ter nova senior managing director at ver tis investment partne partners. pete najarian, option munster, mike murphy and stephen weiss managing partner of short hills capital. we begin with two stories all about hype and headlines. apple iphone sales blowing past expectations this weekend and alibaba's ipo blowing past all that have come before it. recovering both today from all angles. we do begin with the alibaba aftermath at $25 billion officially the biggest ipo ever. guys i'm sure you've