earnings. it's fundamentals. people reassessing what the p/e they should be paying for the companies given the move specifically in the dollar affecting some of the multinationals. >> with the dow down about 360 points, over to you for "squawk alley." >> thank you very much. welcome to "squawk alley." on an eventful tuesday morning. the blizzard hammering the northeast but a bigger storm if the markets. stocks fall, the dow down about 364 points. this is the worst percentage loss for the dow since june of 2013. biggest point loss in about four years. almost fours years. today's action largely the result of weaker than expected durable goods. rough patch of earnings and outlooks at major dow companies in large part because of the strong dollar. joining us this morning for the full hour, zillow ceo spencer rascough with a new book today "the new rules about real estate." thanks so much for taking the time. >> thank you. >> jon fortt, kayla tausche as well. your take this morning, spencer? you're a real estate guy but thoughts op the degree to which 4 x and some of the macro data has taken people by surprise?

>> it's a weak earnings season so farp. couple stalwarts coming and hopefully betters into out of them. as a public company ceo i try to block out the noise and try not to overreact. jim cramer hit the nail when talking about there will be big sell-offs today by the end of the day, by tomorrow if you have a long-term view you can get perspective. ri not to overreact. >> when you manage in a macro fire storm like we're seeing with low oil, strong dollar and interest rates taking a rather unpredictable turn, how much stock do you put into some of these macro issues in terms of your daily operations or do you say, let's wait six weeks, eight weeks, to see how much they really affect us? >> it definitely affects psychology. on a day-to-day basis making hiring decisions all the time, add dozens or hundreds of people. when you see the stock market react and see these macro headwinds you take pause. we try to take a long-term view and not let it guide short-term

decisions. that's where these sort of macro economic issues hit the micro economy which is actually jobs and wages. >> certainly we'll talk microsoft as you alerted us to yesterday on this program. for the moment let's get more perspective on today's volatile market bring in chief global strategist dan greenhouse. good morning to you. >> good morning, sir. >> overreaction or not? >> far be it from me to say it's an overreaction or not. what dave and sara were talking about it being fundamental based is important because you had a number of poor earnings reports that obviously we've all been discussing all morning and that's largely what's going on today. whether it's overdone or not i can't say, but i want to echo the point that was made about jim cramer before. i think he's got the right perspective, a couple companies that have reported that are not executing very well and the dollar is an added issue. there are other companies that seem to be doing just fine and then the dollar is sort of a temporary issue. separating out the two over the next couple days and weeks will

be crucially important. >> this strikes me as an important moment, though, because we've got this negative news out of microsoft that's kind of about guidance what they expect to see in the coming year, slow down in the corporate pc market which you heard a bit from intel also, best buy early on talked about something similar, maybe that's just a consumer market, maybe just in the u.s. we have the red flags in japan and china based on microsoft's report. i'm going to be really curious to see whether that flows through into apple's report. those are two important markets for them. if we see trouble in japan, and china, on top of these fx headwinds we've been talking about is it time to rethink the thesis for some people? >> well, yeah, jon, that's fair. i think but kind of what you're saying if everything is not going well, is it time to rethink the idea that things are going well. that's a perfectly fair position. i think where i tend to focus, whereas your focus will be on the tech names, i tend to have a little bit more of a affinity for the industrial names.

caterpillar performed quite poorly this morning, the earning report was not very good, although i still have more work to do on it. what ge had to say, honeywell had to say, united rentals, some of the other industrials that have reported were not nearly that bad and commentary has not been so poor. things are not good by any means. it's not a good earnings season. there's no real particular bright spot to which one can point, but at least for me, the industrials to the extent they're evidence of global growth, global demand, are not saying we're at the abyss so to speak. >> the headline today is not about job growth. we had a consumer confidence number. that's not the headline either. the question is, if you believe the united states is now the engine, the single engine running the global economy, is it time to start worrying about that single engine? >> no. i don't think so. listen, you had a bad retail sales data print, durable goods report was really relative to expectations, quite terrible,

but overall, the u.s. is doing really well. i think four of the last five quarters, except the one impacted by the storms last winter, have printed 3.5 or above, 3.5% gdp growth in four of the last five quarters. that's really good. q4 gdp should still be pretty good. certainly north of 2%. maybe closer to 3%. that's a really good run. and not every day a point that's going to come out or has come out will be exceptional and today's durable goods report is proof of that. in my mind no doubt right now, that there is not sufficient evidence to get too concerned about the u.s. economy. >> but again, dan, the resounding chorus in the last day as we've seen the strong dollar really affecting some of these reports is that it will stay the hand of the fed or delay it to borrow art cashin's words. morgan stanley believes a rake

height isn't in the cards. do we have a very different calculus going into what the fed will do than we did a matter of days ago? >> with respect to the fed, no. i don't think necessarily just the last two or three days has meaningfully changed people's expectations. i will say for btig we're if in the one and done camp. we think they hike once in september and call it a day, although the risk to that as everybody has noted and will note they go later not sooner. i don't think you have to rethink the fed, but frankly with respect to what they're trying to accomplish, if your goal, if you're worried about the economy, then a rate hike by the fed, whether it comes in the middle of this year or the middle of next year, isn't -- shouldn't really be front and center in terms of your investment thesis. this is a wonderful debate to have and i have it all day long with clients about when the fed is going to hike and how quickly they can do so. to your point i don't think that

the math so to speak has really changed in the last few days. there's nothing in the u.s. or very little in the u.s. to suggest that data coming in says we're on the verge of a recession or there's something wrong. the strength in the dollar is to some degree doing the fed's job for it. i want to be clear, the dollar strengthened in the back half of last year at a rate not seen outside of the financial crisis since the very end of the 1980s. so the dollar strength is certainly something with which we're going to deal. does that mean the u.s. economy is on the verge of recession. the answer in our minds right now is still no. >> dan, it's great to talk to you as always. thanks again. >> my pleasure. >> dan greenhouse at btig. for more on the markets jeffrey gund lack sat down with bob in hollywood, florida. >> carl, we had a wide ranging discussion about the global economy. he gave a speech right this morning talking about how he feels about the way things are going around the world. i asked about gold, i asked about the fed and i asked about

oil. here's what he had to say. >> i think it's obvious that world is dealing with deflationary situation if you look at break evens and the tips versus the nominal market, a across the globe really, if you look at yield curves which flattened across the globe during 2014 and look at the price stats, the internet based transaction of prices, daily, it's at zero year over year. if you look at dollar strengthening that's deflationary. commodity prices collapsing really to multiyear lows, you wonder what they're thinking about raising interest rates. they say something contradictory, part of the gibberish, their mandate is stable prices but define stable as rising 2% per year. last time i checked was not the definition of stable. anyway their goal is 2% a year, you haven't bet 2% a year in like forever and it's going the other way. what is the logic for raising short-term interest rates? the logic they don't like having no tools so when and if the economy rolls over, at 0 at that

time, you're in a very bad situation. >> let's talk about gold very quickly. you noted in your speech, gold is actually up against many other currencies around the world. >> the ruble, up a massive amount. >> yeah. >> in ruble terms. >> what is gold telling us and what do you see happening in 2015? >> gold is reacting to the negative yield environment. i mean amazingly, people are paying switzerland, paying switzerland to warehouse their money for ten years. a negative yield. 30 basis points or so in ten-year swiss bonds. that makes gold a high yielder. because it yields zero. you're in a world that's being incrementally favorable for gold and also basic volatility all the currency volatility that's out there. i think gold goes higher in the months to come with oil down as much as it is, there still isn't enough fear for the short term. >> do you think there's going to be a substantial fallout from the shale plays at this point? are we going to see, we've already seen stress in the high yield sector where there's

substantial reputation of shale plays there, but do you think we're going to see a substantial fallout? >> yes. >> that production is going to drop? >> yes. >> dramatically? that would argue for stabilization in prices. >> that's why i say it will be higher at the end of the year, not as high as people think. clearly the new investment in shale plays is going to be almost literally nonexist the with the wti trading where it is today and so there's going to be a lot of knock on consequences. notice u.s. steel most balled a couple plants. things you don't think about but go, why didn't i think of that. u.s. steel, the pipes, so there's a lot of knock on effects and those are going to be rippling through. that's the sinister drop in oil. the happy side, you go to the pump and prices down by $3.50 to $2 leads to more spending power, pay down of debt, other things that are all positive. few months down the road the cumulative effect of capital spending dropping and shut down, knock on plays, it's going to

have an inc krcremental negativ effectp that's why the feds raising rates in june is dangerous. the data may soften from the baked in the cake drop in oil price. >> and that's jeff gundslach. i tried to pin him down on the price, he said it will be higher towards the end of the year, but not $90. i asked about the greek elections. he said if weak sisters, that's the phrase he used, left the euro this would be a positive, not a negative, for the eurozone overall. i think he's taking a contrarian opinion on that. i asked where is he putting money globally. he only mentioned one country and ta was india. made it clear he preferred india over china and most other investments. india has a growing population, great future. he is at the etf.com conference because he's launching an etf in 2015 with state street actively managed bonds.

he's going to be competing against pimco. a statement, a guy like him, hedge fund manager at the etf conference, i said why, he said because money is flowing into the etf business. guys, back to you. >> bob, he has personally seen some inflows to that effect. we will see what his aspirations are in the etf industry. bob pisani with jeff gundslach. more than a foot of half of snow dumped on boston, providence and the northeast and that number is only going to keep climbing. the weather channel is live in boston with the latest. chris? >> yeah, hey, kayla. we have about 18 inches of snow here in boston. but in the surrounding area, people are reporting upwards of 30 inches of snow. you know, some folks have talked about this storm being a disappointment in new york city, but it is anything but here. boston has been in the cross hairs and down providence up into new hampshire and maine. the snow tps continues to fall. when i think things are starting

to let up a little bit it intensifies as the heavy bands of snow continue to come off the ocean and pound the boston area with all of this snowfall. now accompanying this, also, high winds. we saw a lot higher winds earlier in the morning. wind gusts up to about 40 or 50 miles per hour in the boston area. down on cape cod and the islands, there were wind gusts on nantucket island, wind gust of 78 miles an hour and seen some power outages there and flooding. last i checked there were about 20,000 power outages here in massachusetts. the good news is, there aren't too many people out right now. most of the people have listened to the warnings about how bad this was going to be and they stayed home. there's a travel ban in effect. most people are not allowed to drive right now. we are seeing some people wander out on to boston common here and maybe go for a walk, walk the dog, take the cross-country skis or snow shoes out for a spin. boston resembles a ghost town

right about now as this storm continues to blow in. they're trying to figure out when they can get planes in and out of logan airport again. might be tomorrow before they can do that. send it back to you. >> all right. thanks, chris. thanks for taking the brunt of the storm for us, i suppose. meanwhile shares of microsoft falling nearly 10% this morning, despite fiscal second-quarter profits that were in line with expectations. big trouble spot for the tech giant? the pc segment and the traditional server software business as well. the company also forecasting a slower than expected increase in cloud-based revenue. joining us is brent, managing director for software research at ubs. brent, is it time to think about rethinking the big tech enterprise thesis here? because look, i mean intel is down this morning, kind of in sympathy here, so is cisco, so is hp. they're down at levels we were seeing maybe in november and december. concerns about growth for the

rest of the year. is this just a blip? is it a microsoft issue or should we be more concerned? >> i think it's a macro effects issue. clearly the large caps had a great moves last year. you're in a seasonally soft quarter for technology and software. we've written about this for the last decade. the q1 black ice period is the time to actually be buying into weakness and sell later in the year. so we think that, you know, in the case of microsoft, more of this was related to effects in macro issues. if you kind of add those issues back, their commercial business is still growing at a high single digit growth rate which relative to oracle and other large cap peers, they're growing that much faster. so we think that this will be somewhat of a blip. clearly they're in the penalty box for a while and most of our clients are on the sideline. you see the reaction in the stock that trades at about 12 or 3 times on the new numbers on where the stock is this morning. we would highlight there are numerous supporting factors for

microsoft here including $31 billion buyback that will be completed by the end of '16, operating margins can go higher and a lot more recurring revenue given the shift of the cloud. not a great print but there's a handful of catalyst tas can help them out supporting earnings going forward. >> i hear you but what about china and japan in particular talking about the pc slowdown there, bleeding through into microsoft office, attach rates and also the traditional transaction office business and the server business also seeing a broader slowdown that cloud isn't making up for? i mean that stuff is not effects related? >> it's not. i was in asia last week actually and when you look at the mobility trend right there, there's not a lot of pcs around, everyone has their mobile phones out. that clearly is a share shift in dollars that the companies are spending on mobility or away from pc. that's not going to reverse any

time soon. there was a big reinvestment back in commercial servers last year in the pc refresh with xp. this year, you do have a server refresh cycle for microsoft which they're going to be expiring. that will not be as big a c catalyst as xp was because it comes through the balance sheet, doesn't come through the income statement right away. so we do believe that there is a mini server refresh that will come this year, given the aging of the windows server 2003 offering. it's not going to be the same magnitude. clearly yeah, there was a big tailwind last year, that turns to more of a headwind this year and that's not reflectd in the stock. >> jon, if i can jump in with a slightly different perspective. i run a tech company in seattle and satya has absolutely changed the perception of microsoft within the seattle tech community. it's cool to work at microsoft again. no longer something people on the sidelines of soccer games have to pretend they don't work at microsoft. it's acceptable in seat toll

work at microsoft. that's a big change. that's the same thing mas ris sa is trying to do at yahoo! and satya at microsoft. one example, takings the microsoft office suite of apps and putting them on ios, small thing not going to move the needle for microsoft profits, but it says a huge statement to the technology community that microsoft is now platform agnostic and embracing mobile. the one thing speaks volumes to the tech community. that's the beginning of a turnaround i think. that's the hopefully the tip of the spear for microsoft over the next couple years. >> absolutely. >> brepts, one final question, i'm wondering, we talk about microsoft being cool. it wants to reinvigorate some of its products and one of the strategies is giving them away for free. that's pretty much where the revenue weakness is going to come from the lost line items they won't be getting paid for. do you think that will eventually pay off as a strategy? >> i do. i think it's stimulating more unit sales with windows and i

think where microsoft makes up for this, is the addition of these subscriptions, right. the os is only one part of the equation. you can -- you have to have a lot of different applications and infrastructure to run that os. when you look at what nadella is doing, it's a smart move which embraces a broader ecosystem across devises and i think you've seen their in their acquisition strategy as well. no longer about the microsoft stack. this is about being across platform and pushing that harder than ever. i was at a large tomorrow software company here in san francisco and it was a start-up and they said, you know, we love what microsoft is doing for us. you would not hear that in silicon valley two years ago. i think microsoft is on the right track. it's going through a transition. but i think again, when you look at the things that they have now as a catalyst to help at this level, there are multiple things they can still pull out of their hat at this point. >> all right. we see how long this transition

lasts. brent from ubs thanks so much. >> thank you. >> when we come back, keeping an eye on the markets. the dow has been down as much as 390 points. "shark tank's" kevin o'leary will give us his take when "squawk alley" continues on this tuesday.

microsoft starting off a wave of negative earnings which are heavily weighing on the markets. dow is down about 350 points right now. can apple turn things around when it reports tonight after the bell? joinings us from sunny california this morning is mr. wonderful, kevin o'leary of "shark tank." good to see you this morning. >> it's great to be out here, carl. so happy you're there and i'm here. >> yeah. i can imagine. i was thinking about all the companies that, quote, disappointed today, the microsofts, the cats, the p&gs, utxs, pay a hefty dividend. do you think it's a good time to be in the market? >> i ask this question, taking out the emotional rock and roll ride of a 2% move, because we're going to have more volatility, does it change my thesis about being in equities for this calendar year in let's take the most pessimistic scenario based on the first 18 misses and say currency is going to whack everybody that's multinational, bad news, and everybody is bringing down those

expectations. you saw that with caterpillar, microsoft blamed a bit of it on fx, but then ask yourself, okay, let's say we stay at 3% gdp growth in the s&p, and instead of getting 8% growth, i only get 6% if earnings. okay. does that change my thesis about being in equities? no. i can't get 6% anywhere else. i will take 2.5% in the form of cash dividends as opposed to what i call disco stocks where i have to believe capital appreciation the only reason i can own them. i'm sticking with my thesis, i own microsoft. look any time that rick sherland the hammer of microsoft, the guy that's owned the stock for 20 years as an analyst puts a sell on it, of course it's going to get whacked. i talked to the mid-cap value added resellers, they're loving microsoft and what's going to happen with windows 10. they love the mid-kap market what's going to happen. i'm bullish on the stock. bought it today, i bet you're up 6, 8% by the end of the year.

>> to be fair to rick he went to neutral city, did go to a sell on microsoft talking about the opportunities in tech, spencer, glass door has job rankings for 2015, most of the jobs the best jobs, are still in tech. >> yeah. >> still going to be if not in oil and gas driven economy, a technology driven economy. >> it's driving a huge part on the west coast. seattle and the bay area where all the job growth is. you know, we're 1200 employees at zillow, a year ago 800. we're growing quickly. microsoft is also hiring a lot as well. so tech growth is where it's at. >> kevin, of the big stories today, what worries you the most. cat has plenty to throw at you, resource mining, you're canadian, you understand that, i don't know if it's currency because you saw the dollar hit $1.25, what is the thing that worries you the most? >> i think what we haven't given credit to the overall economy and market because we've stopped talking about it because fx and currency is getting the

highlight today, is that since october, we've had oil collapse 40 to 50% in the input costs, so you take companies that have missed their numbers or you think have soft earnings as a result of what's happened on currency, they have not accrued any benefit, carl, on what's going to happen in lower input costs. in terms of oil. including something like a procter & gamble. they make a lot of stuff out of chemicals that are derived from oils at lower prices. i anticipate we'll see that come and accrue to us in quarters three and four of this year, making up for the currency blast we just got. you have to take at least a 12 month view and say wow, it's bad, currency is hurting, multinationals, that's 47% of the earnings of the s&p 500. but give me the benefit at some point of lower input costs on energy, you haven't given me that yet. i'm waiting for it. i'm staying the course. dividend payer, lower volatility and i'm going to make 6% this year. opening equities. minimum. >> kevin, we haven't seen that

thesis manifest itself in the stocks you would conventionally think of as benefiting. ups was rushing to get all of the higher volume packages to people on time during the holidays. they actually spent more as it sounds before we get to their earnings, it sounds like they spent more and didn't benefit from oil. how do you pick the winners going into this market? >> well, when you look at a transportation company, the question you to have, if they're rolling a hedge every quarter they've accrued no benefit. they're paying more than the price of energy for everybody else that's buying on the spot market. you have to let it roll through three quarters. even companies putting on a 90 day hedge transport based get the benefit eventually. you have -- i really think that oil will kind of sit around sub 50 bucks the next two years that benefits eventually. you to have a long-term view on this thing. i don't think we've had any benefit from lower energy prices in terms of s&p earnings. i'm waiting for it. now i could be wrong. i don't think so.

>> back to tech real quick. apple is down about 8% off of its all-time high, but it's still up for the year, which suggests to me maybe people think they're going to dodge the bullet that the other companies reporting have been catching. has the bar been lowered enough for them or if they report something disappointing or conservative guidance, do you think that's going to read through into how it performance over the next few days? >> you know, you and i have this fantastic debate going on on apple. i own it, i'm disclosing that, almost a full weighting now and you make me nervous every time i talk to you about it, jon, because there's two things i worry about. i think the numbers will be spectacular and i think they've avoided a lot of the fx hit. they're going to get almost double digit growth from a company that's a behemoth which is unheard of. the concern i have i guess is, i keep seeing everybody coming after them and every sector they're in and wondering when the force of commoditized pricing is going to effect them. i haven't seen it yet.

i think this is going to be a bellwether that lifts the market. we could have a volatile session. they print a great number. all of a sudden the market comes back up. apple is going to be a wonderful, bright light in earnings, i think. i don't think they're going to miss, they're going to bring down estimates either. >> historically, earnings are not their strong suit so to speak. their guidance is traditionally conservative. seen a lot of horror shows the day after that. we'll see tonight. it's going to be a lot about phones and a lot about the dollar. kevin, always good to see you. thanks again. >> take care. >> kevin o'leary in l.a. >> another quick check on the markets with all of the major averages down more than 1%. take a look at the dow, down by 360 as carl mentioned earlier, down by as much as 390 points on the back of weak blue chip earnings and a really weak durable numbers. "squawk alley" will be right back. ♪

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europe. earnings disaappointments combined to send stocks lower. phillips may not hit targets for 2016. seemans missing on earnings. the germany company citing weaker economy and oil prices. blue chip index snapped an eight session winning streak and the same goes for the ftse. meantime back here at the big board, dow down 338. mary thompson is on the floor. >> come off the lows, 390 point decline for the dow jones industrial average. the two stories weakness in durable goods order and the dollar's impact on the earnings news that we were having that we received today. all of that behind the sell-off we're seeing on wall street. one interesting note, the floor is quiet today because a lot of traders stayed home. volume is just a hair below normal. it's not quite as light as you might expect given that we did have a closure for new york city beforehand. so volume slightly below normal in the down day. i want to walk through the

biggest percentage decliners on the indices we're seeing today. you can look at all three indices the dow, s&p and nasdaq and the leader is microsoft after those. the disappointing forecast earnings in line with expectations as you can see down 9%. it has come off the worst levels of the day. caterpillar another contributor to the dow, 350-point decline. caterpillar impacted by the stronger dollar, taking down its 2015 forecast significantly. so it -- these two are the biggest tee cliners among the -- decliners in the dow. among the s&p 500, came in with earnings that were ten cents below estimates. the company is cutting its capital expenditures and that's hitting joy global as you can see right there is down 5%. this is a provider of equipment for the mining sector. now on the nasdaq, we have weakness and microsoft and the other big name tech companies, of course, i.t. that's the weakest sector today. take a look at sanmeana on a

percentage basis one of the biggest decliners on the nasdaq, down ability 10%. its earnings coming in line with estimates but the company forecast lower than expected results for the second quarter and it's being taken to the wood shids down 11%. another company that's jj snack foods, maker of slurpees, wouldn't want a slurpee after today's snow but take a look at this. investors obviously disappointed with the first-quarter results as the company faced higher expenses. it's stock off 15%. i want to end with the coal miners. pea body energy came out slashing dividend, it reported weak results, trading close to a 12-year low and it's pulling some of the other miners right along with it. peabody the worst performer down 6.9%. the dow off 342. back to you. >> mary thompson with a relatively busy trading day despite a quiet day on the floor. mary, thanks. the other major story we're watching this morning is the storm now passing through new england. here's a live shot of snow blanketed hartford, connecticut. barely anyone moving out and

about on the roads. the worst blizzard, worst of the blizzard, missing new york but the city was hit where it hurts one of the biggest arteries of business with mayor bill de blasio warning new yorkers they could not rely on ordering stakeout not on the -- takeout, not on the phone or app or otherwise. here's what de blasio had to say. >> food delivery bicycle is not an emergency vehicle. no. the -- if you are part of the city government, if you are a first responder, if you are an essential public servant those are the kind of people allowed on the streets. nothing will come to that in a moment, nothing that has to do with leisure or convenience or takeout food or going to movies, we were's not doing that. >> matt maloney the ceo of grub hub which owns seamless. the comments had consumers up in

arms. your immediate response as a business owner in this industry some. >> well, sure. thanks for having me on, kayla. we're most concerned about the safety of the drivers and the security or the service, the quality of service. obviously what the mayor said was that he would not supportive of deliveries on public streets and so with the travel ban we did take down all the restaurants in the affected areas. we did allow restaurants to opt in if they were able to legally deliver and did have orders last night actually during the travel ban of restaurants that were walking orders over to the patrons. we've been on high alert since saturday with all of our care teams, all of our communications team in constant communication with the restaurants to find out, you know, what it's like on the ground. in some neighborhoods it was, you know, it was okay. they could potentially get on their bikes and it was fun. other neighborhoods it was hard hit. obviously boston right now is a

disaster zone and so we're working with the restaurants in boston really closely and they're still under travel bans and so we are in emergency situations there. >> matt, so many densely populated cities rely on takeout. you have a lot of concerns that you take into account from the business perspective. what is the protocol for consumers? a lot of people talking about the ethics of ordering takeout during a storm, how much do you tip? what is best practice? >> sure. i mean, what we say typically is that cold is gold. when it gets cold, starts to snow, we see a big increase in orders because frankly people don't want to go out. as always, there can be way too much of a good thing. when in a blizzard situation, it's tricky. honestly the drivers don't all go into the restaurants. the restaurants have a hard time preparing the food. when demand spikes with the increment weather a lot of times supply is throttled. we have to leverage our position with our technology to make sure

we're in constant communication with the restaurants to figure out who is able to supply the delivery food at acceptable levels of service. >> okay. matt, spencer from zillow here, moving in a different direction. seems a common theme of what we've been talking about today is the shift of computing from tablet, sorry from desk tops or pcs to smartphones. a huge part of grub hub's sux ses. impact apple's earnings tonight, zillow hotel tonight, who we will be talking to later. can you talk about how mobile has transformed grub hub and what your mobile strategy is like? >> oh, i mean if you think about the mobile use cases, they far surpass the desk top use cases. you know, i think about myself, i'm on the couch watching tv, it starts to snow, the news is taking it's going to be a blizzard, first thing i'm thinking pull my phone out and order from my favorite restaurant. we've seen a dramatic increase in mobile ordering, over 50% of

our orders are mobile derice vices. we've been a mobile first technology company since, you know, i think since zillow did a long time ago. we all transformed while our consumer base has transformed as well. but one of the interesting things about our mobile platforms we're able to leverage our technology in the restaurants. we have our order hub tablets in the restaurant. we're able to have the direct digital connection with the chefs and restaurateurs to tell us when they're actually able to supply the food and when the food goes out the door. >> they're using tablets in the restaurants. >> absolutely. >> keep track. >> right. >> i know many new yorkers hoping your network comes on line as soon as possible as the storm slows down. as a new york based company i'm sure you're hunkered down but appreciate you coming to the phone this morning. >> absolutely. just so you know since the travel bans have been lifted we're bringing back the restaurants aggressively, using our technology to find out who's

able to service new yorkers right away. you should see a good network as lunch time comes up on us. >> all right. matt, appreciate it. matt maloney of grub hub. >> thank you. >> speaking of weather it is a nightmare out there when it comes to air travel. kate rogers live at new york's laguardia airport on what has been a harrowing day for a lot of travelers. kate some. >> that's right, kayla. what's interesting this morning is the port authority of new york and new jersey came out with a statement saying they're expecting minimal activity at new york and new jersey airports. newark, jfk and laguardia. we haven't seen anything like that since we've been here this morning. we'll certainly keep you posted if any flights come in or out of here. flight aware says that between yesterday, today and what's projected to be canceled tomorrow we're nearing the 8,000 mark for cancellations due to winter storm juno and today's more than 4,000 cancellations according to flight aware is more than 50% of u.s. daily air travel. and traffic. so we did catch up with some

travelers here who wound up getting stuck overnight despite all of the juno warnings. they did tell us laguardia is treating them pretty well. they have cotts, water and even got toothbrushes. >> going to stay here again. saves me money, although i booked a hotel but i couldn't get there last night. >> okay. >> no taxis. >> all i can think about is sunnies nassau, bahamas and i'm anxious to get back. the slogan we have it's better in the bahamas and i've proven that to be true. >> you can see, they're still in good spirits. united is the only one that actually has people working at their ticket counter here. and we did see a lone united plane on the tarmac amidst all the snow plow but no word if that's getting out of here any time soon. -mile-per-hour my money is on no. >> thank you so much. >> it may not be that ugly out in new york city. it's ugly in the markets. seeing a little buying, netflix now positive.

rick santelli, you must be watching some of this action today? >> oh, yeah. some of it, trying to watch all of it. i guess there's two questions everybody is wondering about. one, does this affect the normalization by the federal reserve and the second one is, is this the big enchilada with regard to a correction in equities? we will weigh in on both of those after the break. . no question about that. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours.

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coming up at the top of the hour, is captain america crumbling? a sell-off in stocks today.

all of the trade covered and the call of the day, downgrading microsoft to sell. are the traders on board or buying the dip today? apple set to report after the bell. one analyst who says shares can go up 10s% from here. coming up straight ahead 15 minutes from now. >> sounds good. thanks. to chicago, the cme group, rick santelli and the santelli exchange. >> good morning, carl. we're going to do nsa snooping. not talking about the national security agency. i'm going to talk about nonseasonally adjusted. now many times in the past, and we all get our e-mails and we all get our little notes, whenever i seem to wander into nonseasonally adjusted data it really isn't about being less objective or trying to pick the better or worse areas to focus on, seasonally adjusted or nonseasonally adjusted, it's kind of it's hard to outgrow the trader if me and today it was

actually much different than many would suspect. if you looked at today's durable goods, it was pretty much weak from bottom to top to bottom my kids used to say, but if you look at nonseasonally adjusted especially the proxies for future business investing, they were actually pretty good. let's not forget that, a, durable goods is always volatile and b, especially when you get end of the year numbers, so to put it all together i'm not dismissing the weakness in today's number. i'm saying there is another side to the story and if you're a trader you have to cover all side of the story or you lose both sides of your greenbacks. now when it comes to traders trading there's a couple things i would like to talk about. we've heard about fair value when it relates to the equities. and basically what that is, is, for example, the s&p and dow jones industrial average cash markets in new york, close at 4 sharp, but the futures markets,

both of those extend for force quarter of an hour. another 15 minutes. if something big happens in the 15 minutes it affects the calibration of the close, hence all the movements the next day as far as a reference point. there's a similar event in the fixed income markets but we never really notice it. but we need to be aware of it now. why? because many services look at futures close, at 3:00 eastern, and they pair up the cash market close at 3:00 eastern. that's fine with virtually 24-hour trading but keep in mind the cash markets open several hour past that. the reason it's important because of the 15th of january. 15th of january like the 15th of october, is super significant. those extremes, those lows, in a 10-year and 20 month lows, historic lows, diverged it if you don't look at the same close. 171 in 10s, already underneath it at 236 in 30s. need to be aware of it if you're

going to make the right trade. back to you. >> thanks so much. still seeing the markets near a six-week low, dow down 347 points. s&p down 28. nasdaq down 82. as we go into an afternoon that is heavy with tech earnings. we will have more on all of that up next on "squawk alley." say you're a finance guy. a farmer. a researcher. you used to depend on experience. the internet. your gut. today you can use ibm watson analytics. it can make sense of all kinds of data. uncover hidden correlations and new opportunities. and give recommendations with more confidence on who will buy. what to make. where to plant. which helps you make smarter decisions. there's a new way to work and it's made with ibm. your old 401kyes!rolled over into a td ameritrade ira. so no set up fees!

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welcome back. i'm julia boorstin with the cnbc market flash. twitter shares falling further than the rest of the it tech sector despite announcing new video tools and private group messaging in a push to keep users engaged and add more. some analysts are questioning whether these developments are enough to drive user growth. this comes ahead of twitter's earnings next thursday u. twitter shares down about 3.5%. over to you. >> thank you very much. markets in the midst of a sell-off going on pretty much all morning long. jim lecamp with ubs joins us this morning from ft. worth. good morning to you. >> good morning, carl. >> you know, it's essentially a snow day here in new york city, but volume for the first 90 minutes above the 30-day average. i wonder given all the earnings today and warnings, if you are sensing a broad sort of shift in investor sentiment? >> okay. here's the thing, carl. look, yeah, we are seeing a change in sentiment and there's takeaways we need to understand here. the strong dollar is good for

the economy on a aggregate basis but it is going to cause some change. one of the adjustments we're going to have to see is on our multinational corporations. the second takeaway we're seeing a global growth slowdown which shouldn't surprise anybody, but the u.s. is not akieving the breakaway speed that last quarter gdp had suggested. we're already seeing most of the data soften a little bit. it's not unusual for an economy in recovery, especially highly indebted economy, to show some spurts of growth and then to pull back in. we've seen it all over the world, starting to see it in the u.s. a little bit. but, low oil prices, and a strong dollar, are on a net basis good for the u.s. economy. it's going to be a more volatile year, though. we have the central bank game of thrones with the currency wars going on that's created a lot more uncertainty and the central banks are starting to lose a little bit of credibility. we're going to see-saw a lot this year.

we'll seesaw higher but it's not going to bes pleasant. >> see if we're winter fail or kings landing. the dow down 340 the vix, 17-point -- below 18 does that surprise you? >> no. because look at interest rates. at the end of the day, carl, where is money going to go? it's probably going to stay here in the u.s. because although we are slowing a little bit, we're still better than everybody else. and the dollar is still the major currency, the major go to currency the safe haven. we're seeing gold track up a little bit and that may be why you're not seeing a bit in the vix. maybe it's gold because it's tied to the central bank moves. we've seen canada, the swiss, danish, all these central banks, european central bank, make surprise moves and so that's not really playing into the vix so much as it's starting to play into gold a little bit. i think we're going to be dealing with this all year. >> jim, good insight today. thanks for that. we'll keep it short this morning. joining us from ubs in texas. >> all right.

>> as we go to break another look at the markets. dow down 343. what to expect out of apple when they report tonight along with at&t and yahoo!. back in a minute. "mad money" who do you work for? your boss? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird. nobody's hurt,but there will you totstill be pain.new car.

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welcome back. apple tonight, we talked about the earnings up to the. work done by one of our statistici statisticians. last tep quarters average return the day after earnings is minus 1%. but the last three have been an average of up 2.6. >> here what's i'm worried about. expectation for iphones are high in the 60 million unit wise. even if they do a little bit bitter than that it's the guide you have to be concerned about with what microsoft said out of japan and china, both of which are important markets for apple. >> see what happens after the bell. spencer, congratulate you on your new book "the new rules of real estate". >> we wrote this book as fun, breezy approachable way to share data and make it accessible. what "zillow talk" is about analyzing the huge amounts of data and debunking conventional wisdom. so many myths in real estate. is it always right to buy or

should you sometimes rent? it turns out the data says sometimes you should rent. when remodeling your home what type of home improvement pace out the best. the answer a low-end bathroom remodel pays out better than a high-end kitchen remodel. fun chapters that analyze data what impact do numbers and street names have on your home's value. and we looked at starbucks. so homes that are within a quarter of a pile of a starbucks have appreciated 96% over the last 17 years. near a dunkin' donuts 80% and everyone else in the country 65%. hopefully you live near a starbucks you will do great. >> learn anything surprising that influenced you? >> yeah, i did. about when to list your home is surprising. the conventional wisdom on listing your home do it early in spring. it turns out that internet has changed that to some extent. now you want to wait until that influx of listings occur in the spring and wait, two, three, maybe four weeks later, once buyers have come through the early inventory before they've

chosen a home analyst. we have a chapter that shows city by city when the best time to list is. 2 to 4%. >> compared to economics which is a high prize. >> i would take that for sure. freak nommics for real estate. >> good to see you as always. let's get to head quarters, wapner and the half. and welcome to the halftime show. meet our starting lineup for today. jim. pete najarian. david is the ceo of main stay capital, kenny pull carry is director at o'neill securities joining us from the floor of the new york stock exchange and steve liesman here with us on set as well. our game plan, it looks like this. sell softy shares in the it tech giant take a beating after no less than five downgrades. ishe