this is squawk box. >> driving in this morning was like driving through the storm for sure. we were. good morning, welcome to squawk box here on cnbc. i'm along with andrew ross sorkin. joe and becky are off today. >> it's on the west coast, you know. >> here we are freezing. >> they may not be able to get back here given the weather. i don't know what's going on with flights. >> bad news. >> good for them. >> for me. >> bad for us. >> make it back. right. snow is coming down in new york city. that's likely to make for a messy morning commute but the weather problems are worse in other parts of the country. >> you should be thrilled that you're here this morning. >> we are. we are so happy. it's a privilege to get up at 3:00 in the morning. >> we are thrilled. we just don't want to be back tomorrow morning. >> life is full of o -- trade

offs. kentucky tennessee, virginia maryland crippled by a winter storm. federal offices in washington d.c. will be closed today as they brace for snow. airports in north carolina and tennessee look to be the hardest hit and we'll have a live report from the weather channel in about 20 minutes, scott. >> here's the big stories we're watching today. two economic reports of note. 8:30 a.m. eastern time the new york fed releases it's february survey of manufacturers and then at 10:00, a read on housing from the national association of home builders. they'll attend negotiations in the west coast. drawn out talks between dock workers union and their employers have come to a assault and as a result sports are clogged with cargo. facing the deadline among the filings we have already seen

city group, aig and delta airlines while exiting positions in bed bath and beyond. among green lights new positions, time warner and east side technologies. they took a stake in american realty capital properties in the fourth quarter while exiting it's holdings and city group, halliburton and facebook. >> and running through their moves now. >> first stocks to watch. the offshore drilling giant ceo is stepping down and slashing it's dividend as it deals with falling crude prices. here's the activist story i was telling you about. they want the mattress company ceo ousted. are you familiar with them? whoever they are, they're citing worries about the missed forecast. the activist investor also wants

a seat. >> do you know how much they manage? >> i do not know the answer to this question. also i wonder what you think, they plan to sell $4 million of google shares. the ones that expired last month. so they have been selling over the years. they will now be down about 10 or 11% of the company in total. however they will still control them by 52%. >> what's that worth? >> millions of dollars but as you start widelling it down with your power widel down? >> if you don't like it as a shareholder walk away and sell. >> that's the deal. >> creek stocks breaking down yesterday. they basically never started. there was a short 40 minute discussion.

both sides expressed disappointment about the other side and that was it. they have until friday to apply for a current extension. that's crucial because if it happens the country could lose the support of the european central bank which would mean capital controls et cetera. now we wait and watch to see if either side blinks. we built a wall graphic to show you the way the two sides see the world. on the left hand side is what the greek finance minister says. he says europe is a house of cards you let greece go at the bottom everything is going to start to fall they'll start pricing in exits for all of those countries. on the right hand side is the view from berlin. there are 19 of us climbing up this mountain all connected by a prone what do we do about the very weak person at the bottom?

do we all keep struggling to bring them along? do we let that one person bring us down or do we cut them off? what's going to determine who turns out to be right? it's going to be the markets are we seeing italian or spanish yields rise today? not by much. right now it looks like more leverage on the german euro zone side but we'll have to see over the coming days if we start to see any fear within the markets starward hotels and resorts replacing it's ceo leaving the company. adam aaron is ceo on interim basis basis. >> if you look at the stock, maybe -- can we get a five year chart? if you look at a five year chart

it went 40 to $80. >> stall for the last year. >> clearly for the last year. >> as it's piers. >> marriott had a pretty good run in that time period. >> so you know i'm unclear exactly what is going on behind the scenes. >> it doesn't look good when you have to bring in the interim because that doesn't mean you didn't have somebody ready to go or it was a surprise. that's obvious. >> so this is the surprise. >> the gentlemen that runs it i think that's how you pronounce it he was at third point before he started it. that's who we were just talking about. >> right. >> and they're sealy. >> tempur -- >> that's the new bed?

>> you can jump on one side. you can't do with that with that kind of bed. >> there's people that swear by it. >> there's people that watch this show from bed in the morning. >> that's true. >> back to the business at hand. >> thank you. >> no worries. >> i started it. >> let's check the markets this morning and take a look at where futures are setting up. there you go with the snp and dow. the nasdaq is where the focus probably is going to be today you can see it at plus three but we're back at nasdaq 5,000 watch. the nasdaq had it's tenth highest close ever so people are focused on what's happening within technology and the nasdaq. take a look at what's going on in europe as michelle said

continue to watch the situation in the talks with greece. >> they don't like that frightened. >> not at this point. >> i saw the euro this morning was up. >> it moved lower yesterday but up today. >> we'll get a check on oil. but they're both up while the nikkei is a fractional loser. oil always in focus today. you know that. crude above 53. a gain of two-thirds of a percent. it's been there a week or so. that's where it sits right now. 204 is where we're going to call that. the dollar we were just talking about how the euro was up this morning verses the dollar. that's where it sits now. why do you think the euro is moving higher? is it eventually something is going to happen? or is it so much leaning against

it it's a bounce back? >> the euro i'm not sure. overall markets there's the perception that either a they're going to get a deal done or b if they don't get a deal done it's not going to matter that much. is it going to be volatile? yes. but manageable? also yes. >> not the end of the world. >> in greece leaves you're supposed to have a stronger euro because you have the weakest component leaving now. >> true. >> at which point do you get past the volatility? i don't know. that's bigger brains than me. >> let's take a look at gold real quick. what is gold doing this morning? gold at a slight loss this morning. >> stocks continuing their bullish run with the dow pushing above 18,000. with us is yen, ceo and founder of fifth street management with $6 billion under management. made it here three blocks away

in the snow this morning. kathie is the managing editor. good morning to you both. >> good morning. >> let's just start where michelle was on athens and what it means to the markets. i thought we would wake up and things would be more out of sorts than they seem to be at the moment. do you want to take that? >> i think there's a lot of hope in the markets. i think while it's true that it won't be the end of the world if greece leaves the euro. this can be a lot of volatility. it's important for the market to realize -- and i think policy makers realize there's too many consequences to allow this to go easily. so you see the performance of the euro today and yields this morning and the mixed messages out of europe that they still have two weeks to get something done. >> so there's the two sided issue. you either get there or you don't and it doesn't matter.

you think we get there. >> i do. i think they can force greece's hand. they basically, you know cut them off from the emergency liquidity program and push them into action. i think you have to appreciate the consequences in terms of the return rising inflation and debt default conte i don't know that everyone is worried about it would be foolish to drag this out. >> u.s. equity market versus been on this tear. i've been waiting for the pull back. i thought it would come as a function of greece by the way and it's not happened. >> seven years, i don't think so. history says we probably can't. one of your guest earlier was saying things could go down 30% sometime in the next 18 months what causes that who knows. >> it's not it apparently. >> it's different this time. during the qe instead of

leveraging the greek debt infinitely, how could france be trading .4 and treasuries where they are. it make nos senses no sense. at the same time the qe they're doing with negative interest rates is causing an anomaly in the market but greece i think was left out of the leverage. >> it was. >> so i think it's less of a katzcatastrophe this time. >> so you don't agree? >> i think it's a liquidity drichb market driven market. we're seeing it in small companies. >> does it drive both europe and the united states? it's european qe. not u.s.qe anymore. they drove the u.s. market dramatically. >> right. >> correct me if i'm wrong, it sounds to me say you not necessarily the united states. >> not only europe but japan is

printing 10 times faster than we have ever printed. you have japan massive qe and that has to be driven somewhere. >> for the viewer listening to you, what should they be doing with their money? >> we're shorting energy exposures because what i found is the high yield market hasn't been reflected in energy. people are -- these quotes are silly in terms of if energy stays down here 50 60 65. i think the high yield market 25% and i know you know this market andrew they can get equities at bargain. they have to wait until the crisis passes. i don't think now is the time to buy. you can probably pick it up around 112 50 or so.

so it pays to wait i think and see how it plays out. >> why aren't you buying long-term debt or the u.s. tenure? >> well if you're -- you have to be buying it. >> why wouldn't you get ahead of it? >> because what we're doing is -- well one of our companies is going to issue fixed rate debt. that's what you want to do. >> borrow. >> not really a borrower. what you want to do is -- >> issuing debt is to borrow money. >> it's going to cause inflation. interest rate versus to go up. it's been down too long. what about floating rate. >> you said it's hard to figure out. those are your words. valuations are better in europe. that's not that difficult to figure out. is it just the risks are too high? >> well the currency is

manipulated. any time you have massively quiddity and you're including here -- everything is not necessarily market traded. should the ten year be where the ten year is? but with the massive qe in the world is it driving an unnatural interest rate. >> of course but it is everywhere. >> yes. >> i like floating rates because you're hedged against interest rates going up but capturing a descent yield spread. >> thank you for coming in this morning in the snow. >> our pleasure. >> is it a snow day by the way? >> for kids? >> yeah i know we don't do that on this show. >> work. >> there's other networks. >> starting two hours late. >> no i didn't know if the schools were being closed today. >> in the city. >> i want want to encourage people to go to other networks but people find out about these things in the morning. i don't have these answers. i'm trying to find out. thanks guys. still to come this morning a live report from north carolina where residents are getting slammed by a winter storm and

lot of news on apple including a revamp of its stores and get this, a possible apple car. an icar. and later deeper into the situation in europe and ask what the risk of a grexit means for the global markets. >> big holiday today so a lot of schools are closed because this whole week they're out. >> school vacation out. >> they want to put that on the record. >> our district is closed. >> there you have it. here's a look back at this day in history. anything? no. you? no. aflac! what are you guys looking for? claims! legend has it these hills are full of 'em. it can take months for an insurance claim to surface. claimin' takes patience. aflac paid my claim in one day. they got some new-fangled kinda one day payin' machine? hehehehe yea, i got aflac at work. aflac... in just one day, we approve and pay.

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check out this picture from boston this morning. it's a tweet from jim cantore at the weather channel. he's saying snow in fenway is higher than the right town wall. they have been breaking weather this winter. more white stuff effected this week. lots of school delays for those schools in session today in the northeast. >> did you see cantore with the thunder snow. >> i have so much family in the boston area. >> i want to point out, the tourism board on their website

has changed to say just go to florida. >> but this morning the south dealing with rough winter weather today. jen is here with that story. she's in charlotte this morning in north carolina. good morning to you. >> i tell you what boston has bore the brunt of this winter. for awhile it was nothing but the storms. now all of a sudden we're getting the storms in the east. really in the southeast here it was a wake up call that we get ice in the south and this is one of the tree branches nearby here. in charlotte, north carolina this for us is a travel impactful storm. it's effecting the roads big time. everything is pretty much iced over here and of course there's been lots of cancellations at the airport as well the story is

some tree branchs are carrying much more ice than this. it's across portions of northeast tennessee and georgia. certainly parts of south carolina as well into virginia. so much ice on power lines or tree branches. we're waiting on the precip to move out. but at least the first half of today, dealing with the precip from the latest winter storm and then the big story is the arctic blast that is coming in all the way from the south and even in florida by the way we'll be getting a cool down. so we'll be getting this cold air, a lot of places seeing the record coldest of the season. record low temperatures will be set all the way into the deep south. you'll hear in charlotte we are completely iced over right now with temperatures in the 20s, we are going to be in the single digits barely above zero i was

thursday morning. 4 degrees is the low temperature. that's the next story we're literally iced over right now. i want to show you what it looks like. this is not just the case in charlotte. this is happening in raleigh and parts of atlanta. we have a sheet of ice on roads. this is your drive way. this is your front steps and what we need is help from the weather and maybe salt but the weather will help in the south through the afternoon as the precip moves out and as warmer temperatures build in we'll get above freezing today in the south but the cold coming is a big story. we're going to get power restored before the arctic blast. going down into the single digits this week. the winter never ends and now for the southeast we're joining in on that as well. back to you in the studio.

>> it's going to be a tough, tough week. could an alabamaed car be in the cards? they're working on an electric car. it could be driverless as well. in other apple news the company is in the process of revamping it's stores. >> by the way, two things amazing story in the new yorker. hands down a great read and two do you think they should be making cars? >> i don't see why not. >> why not? >> you invest in one company and now they're in a completely arguably unrelated business. i'm not saying they shouldn't. as a customer if they can do it i imagine they would do it well. i'm just wondering. >> they were one of the first companies to push the idea. when you first bought apple you thought you were buying a computer company and then they were going to be a phone company and you realized that's because they were becoming the same

thing and they saw that so far in advance. >> you're cool with it. >> i'm intrigued by it. i don't know what the boundaries are supposed to be anymore behind these highly innovated technology companies. google pushed the envelope. for better or worse, people have criticized them. the car business has been littered. >> but needed so much reinvention reinvention. people say tv needs reinvention. it's a great business and it's kind of always been a great business. the car business is a hugely capital intensive business when the economy turns down you have real issues. it is just a totally different type of thing than when you're selling 2 and $300 phones. >> they're going to come up with their own vehicle or partner

with somebody? >> unclear at the moment what they're doing. are they trying to be a tesla or create a drive train and other things they sell to a tesla or gm. >> or provide the software that makes cars so much more of what they are today compared to the horsepower. >> i could be down with an apple car. >> smart car. partner with somebody but it's their -- their software. >> if it's them just putting their software into the car i'm totally down. my question is are they manufacturing cars? when they're hiring people. >> that seems farfetched. when they're hiring people that have adrive train, is that a signal -- >> but when they have manufactured hardware in the past think about how beautiful and elegant it is. wouldn't we love to see that brought to a car. >> i'm like andrew. a little skeptical that they would -- it's so capital intensive. look at tesla. constantly having to pour so

much money back in. is tesla down this morning? >> they've been down for the past week. >> on people not buying cars because they're on vacation. >> can we get a tesla chart up on the screen in i don't know the answer. you have tesla up marginally about a percent over the weekend. >> i can't imagine they're going to come up with a ground up vehicle. >> see that's the thing. they invented something we didn't know we needed which is a little thing that put all of our music in all of one place. how great was that. they created a market that didn't exist. they rethought that whole thing from the bottom up with phones too. could they do that with cars? i hope so. it would be great. >> that would be great. we'll see. >> in the meantime why lance armstrong is forced to pay $10 million to a sports insurance company. we'll tell you about that story. plus markets, greek talks

breaking down. why aren't stocks selling off more sf that debate as we return. but first take a look at last week's s&p 500 winners and losers. ♪

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good morning. welcome back to squawk box this morning. joe and becky are off. michelle and scott are spending the day with us on this snowy tuesday morning. among the stories we're talking about today lance armstrong wanted to pay $10 million in a perjury battle. here's what happened. the money is owed to sea promotions. that's a dallas sports insurance company that paid him bonuses for winning the tour de france. >> stocks collapsing. is greece' exit from the euro zone inevitable. it's good to have you here. >> thank you. >> okay we have a little bit of a delay. the market response this morning has been anything but. does the market think it's a deal or even if there isn't a deal it won't be that painful

for the markets overall? >> i think ultimately the belief is there's going to be an agreement between greece and germany. they're still a little far apart. both in terms of the frame work and negotiations as well as the final outcome. substance, large divergences but ultimately we are moving toward a deal that may not happen this week. it may come closer to the 28th of february but i think a deal is more likely than not. that's what the market reaction is telling us this morning. >> it could get ready ugly between now and then correct? are we going to get to the point where we see greece implemented capital controls? >> i think the worst case scenario is there's no agreement on extension of the current bailout. that's clearly the greek government's aspiration but at the time they exit the bailout there's also no agreement on a pathway forward to a new program.

now in that scenario greece will run into funding challenges probably around mid march. there's likely to be more deposit. the ecb will be put in a difficult situation regarding it's support to the banking system. in that world there's the risk of capital controls but i don't think it's going to get that bad. we're likely to see some form of agreement emerge toward the back end of this week and early next. >> what's the probability that you're wrong and if you are wrong and they end up leaving, how bad is it in terms of the market impact? >> so we have an 80% probability that ultimately there's going to be a deal. in terms of the grexit risk we place that at around 20% more driven by germany's extent. they're clearly playing greece

aggressively for a set of domestic reasons. you saw on sunday her party got completely trashed in that context. so very very constrained domestically. if we do end up with grexit the reaction will be -- the risk of spill over will be more contained. there's institutions created through 2010 and 2012 designed to deal with the crisis. european stability mechanism is one. you had a large amount of refunds. if you look at spain, fastest growing economy many 2015. estimated to grow at 2.5% this year and most importantly you have the ecb gearing up to do sovereign qe in marchand countries that would otherwise be vulnerable, france and italy are the ones i'm thinking about. they will be protecting in the context where they're intervening in the secondary market. i think the risk of grexit is

small. 20%. 20% there abouts but spill over is nowhere near as pervasive as in the 2010 context. >> i don't know if we had the wall graphic we build earlier. we're showing two views of the world. europe is a house of cards they let greece go everything is going to tumble the germans see 19 mountain climbers going up the mountain all connected, what do they do with the weakest player at the bottom. do they let them drag them down or that individual two. depending on who is right, which side has the most leverage. who is right? is europe a house of cards or are they all climbing up the mountain and greece is just a weak player? >> the true is probably somewhere in the middle. i think he believes he has leverage and that's italy. if you let greece go you demonstrate a path way for exit.

this is no longer a single currency. it's a fixed exchange rate regime and the market will bet on those sovereigns they receive to be weak. on some level i think there are elements of truth but i think germany's view is also legitimate. this is not 2010. but the southern part is dislocated. you can see how markets are pricing risks versus greece clearly making a distinction and i ultimately think we're trending toward a deal and the deal is going to look more like what germany wants than what greece wants and that's because greece is heading into bankruptcy in the middle of march. there aren't private buyers and absent official creditors they're supporting the sovereign and will run into a difficult situation and this government in greece doesn't have a man date to take the country out of the euro. that's not their platform.

it is to renegotiate a new deal with europe. slightly slow down the pace of austerity and roll back the structural reforms. i don't think the government wants to take greece in that direction. >> thank you for joining us this morning from london. >> thank you. >> we'll watch the situation play out with greece. good to see you. >> meantime the faa unveiling new drone rules and they could mean a green light for thousands of business drones but a possible trouble spot for amazon and it's delivery plans. safety rules would mean operators of small drones would need to stay within sight and not fly them higher than 500 feet. >> makes it tough to deliver pizza. >> don't you think some day we're going to look back and say remember when they wanted to prohibit drones. >> is it going to be in our lifetime? maybe we'll be looking down from

the heavens at drones. >> i don't know. i don't want to see them. >> you don't? >> no. why? >> would you feel that way about planes? >> i hardly see planes. planes are so high. >> all right. you could have a silent drone. they wouldn't necessarily be loud. >> they're like plastic helicopters. like toy helicopters is what we're talking about here. >> essentially. they're basically remote control toys. >> toy helicopters and think about them just flying all around and hitting things and falling town on top of you. >> maybe they wouldn't hit things. maybe they would be controlled. >> presumably if they ever let them fly they credible than that. >> here's the catch. right now they're great in that they're like a bird so if they were to run into something or fall out of the sky, not a problem but to be a commercial -- for commercial use they would have to carry heavy

things in which case. >> a can of paint falling on somebody would be problematic. >> killer. >> done. that's the end of the story farce i'm concerned. >> up next time to play name that stock. this dow component hasn't traded at these lofty levels since it debuted. harry s. trueman was in the white house. humphrey bogart won best actor and the price of a stamp was 3 cents. the year 1952. we'll give you the answer when we come back.

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and that mystery stock is boeing. talk about a high flyer. the aerospace giant soared over the past 50 years. they're the top contributor to the dow. so far up about 15% year to date. joining us to break down boeings performance is kent herbert. welcome. >> good morning. thank you. >> i mean this one has been flying under the radar a bit hasn't it? i don't hear many people talking about it. >> well it had a fairly disappointing 2014 after a great 13 but the company put out strong guidance for free cash flow. visibility is improving. it's a safety stock. a lot of concerns with fuel. so i think it's time to take a fresh look like a stock at these levels. >> are you surprised by the

strength? >> a little bit, frankly. they reported very good results at the end of january. the stock was up big that day. it was up big the second day. 63% which was very unusual. you have 12 billion in cash from buy backs over the next two years. you've got continued strong fundamentals. i think the backdrop is very favorable. >> risks are what? currency risks? you mention something in your note, this 777 order bridge. what is that. >> first boeing announced they're launching the 777 x which is an upgrade to the 777 aircraft. in order to avoid cutting production rates on the 777 they need to sell about 50 or 60 of the planes for each year. it is a very profitable plane

and contributor to cash. they have half in asia and europe as airlines of course and leasing companies pay for aircraft in dollars so as their local currencies continue to weaken that's a risk and then i think about the defense budget as well. but that's a risk also. clearly i would say the 777 and currencies are what i'm watching the closest. >> where are we reason to break even for the 787? the issues or the dom nanlt issue over the last 12 months or so, maybe longer. where are we on the road map to break even? >> so the company continues to make progress. obviously south carolina and the plant there. a big part of the story is that continues to improve. the company is talking about end of 15 for break even on a uni basis on this program. myself and most investors believe either end of 15 or

early '16 you'll start to cross a point on this program. the company continues to move in that direction an what's important is people now it's not a matter of if but when on this program and there's things moving in the right direction. >> how does oil factor in the equation? >> airlines tend to be more profitable but are not passing it on to us the travellers. they'll capitalize the fleet and spend more money. if oil were to stay depressed for an extended period of time you could see risk as airlines swap out with some of the older jets that are less fuel efficient. that's on the margin. i don't see it as a significant risk to the backlog. >> thanks. interesting story. certainly a stock that performed well for investors. thank you so much. >> have a great day. >> you too.

thanks. it's time for the squawk planner this morning. the n norkew york fed releasing it's february survey. and also a few companies report quarterly results before the bell. those include medtronic and the westminster kennel club dog show is taking place in madison square garden. are we headed over there to see dogs. >> i'm supposed to two tonight. >> are you? >> yeah. it's a big american tradition. >> do they crown the champ tonight? >> i'm not sure. i'm not that informed. >> better get. >> i better right? >> coming up it is fat tuesday and carnival celebrations are reaching feverish levels in new orleans. we'll have a arrive report from the big easy coming up next. first check out the most clicked stories on cnbc.com. including crude oil. can texas remain the best state for biz? and apple just hired a radio dj.

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can your business deliver? welcome back to "squawk box" this morning. media news "fifty shades of grey" grossing $90 million in the u.s. first week alone. add to that $158 million it's done abroad. it's doing pretty well.

the universal parent part of this comcast family. >> in the black by a wide margin. >> doing pretty well. >> did you see it? >> i have not seen it yet. >> have you? >> no. >> neither have i. wow. we're not good employees. >> i don't know. did you read the book? >> no. i didn't read the book either. that only cost a dollar. >> what do you mean? >> wasn't the big story about it was that it was a downloadable book. it was cheap on kindle. >> i don't know. >> you don't want to see a movie about this? >> you don't want to admit you saw it? >> that's another good question. >> but i haven't seen it for real. in other media news, the early numbers are in on the big "saturday night live" 40th anniversary show. about 23 million people watched. that is nbc's best non-super bowl night in demos since the

"will & grace" finale in 2006. >> i watched it. >> i did too. as much as i could. i was cracking up at so many different things. so many good little -- >> it was like a classic "saturday night live." some things were super funny and some skits fell a little flat. it was true to form. red carpet was interesting. >> it was fun seeing everybody again. it had been a long time. >> it was. how different they look. jane curtain looks great. there are others who did not age well. but that's okay. >> did you see chevy chase? >> i did. >> okay. there you go. what's going on? >> it's fat tuesday. that means a big party in new orleans. that's where we find jay gray who is looking great. jay? >> good morning, michelle. i'm glad i've weathered the years especially at mardi gras.

there's been some concern this year because of rain which we've seen throughout the last day or so. temperatures that are in the 30s, windchills in the 20s. not traditional mardi gras weather. but i can tell you because i am industrious and giving reportering with i've been checking things out. there are still people on bourbon street. hard to tell whether they're wrapping up last night's party or just getting an early start on the last day of mardi gras here. beads and boas masks, costumes, and well, this. all in a place where just about anything goes during carnival season. >> this is the party capital. this is what i'm talking about right here. raw nolo. >> there's an undeniable rhythm to this city. spilling out and into the streets. >> you do it now, you have fun. you got to enjoy life when the

party starts and you start the party. >> especially when that party is mardi gras. >> it's so much fun, all the people, the crowds. everyone is real nice and friendly. it's a great time. >> a bash that is also big business. the latest economic impact study shows mardi gras brings more than a billion dollars to the big easy. with more than 95% of the city's 30,000 plus hotel rooms filled. though between the parades and the parties, it doesn't seem like many are staying inside. even with a forecast this year for a little rain. and temperatures a bit colder than normal. >> weather has been proclaimed postponed until wednesday. >> and in the meantime, the party continues. yeah. continuing with two of the biggest parades a bit later this morning. and then tens of thousands expected to pour here into the

french quarter regardless of the weather. rain or shine, cold or warm they'll be here celebrating the end of the carnival season. >> did you have to show anything to get all those beads, gray? those are a lot of beads around your neck. >> the big ones usually cost you something. >> this is a family show. and we're not going to start the morning like that. also, nobody wants to see what's under this ski jacket, really. >> it's early? an hour earlier in new orleans, i think. thank you for waking up or never going to sleep. >> that's what you do when you come to mardi gras. >> thank you for that. when we come back this morning's top stories including collapsed greek talks and the nasdaq is 5,000 back in sight. "squawk box" returns in just a moment on this very snowy morning here in new york city.

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stocks in rally mode. "squawk" market master jer mee siegel tells us what to expect. president obama sending labor secretary to broker peace at west ports. and the house that lego built. >> introducing the double decker couch so everyone can watch tv together and be buddies. >> the toy maker increasing market share and unveiling new offerings here in new york. we'll unveil the company's new franchises and movie tie-ins. >> this is emmitt. this is my boyfriend, batman. >> i'm batman. >> second hour of "squawk box" begins right now. ♪

>> live from the beating heart of business, new york city, this is "squawk box." >> welcome back to "squawk box" right here on cnbc first in business worldwide. i'm andrew ross sorkin here with michelle michelle michelle caruso-cabrera and scott woffner. greek talks breaking down yesterday. leaders being told they have until friday to apply for an extension or else it's going toex pyre. they could lose support of the banks. greek banks are losing around 2 billion a week. which says the banks could run out of collateral in about 14 weeks at that pace. then the country could face a cash flow. ports on the west coast reopening today after being shut down for six days out of the past ten.

u.s. labor secretary tom perez will attempt to mediate negotiations over that situation today. and a federal judge has temporarily blocked president obama's plan to protect millions from deportation deportation. failed to comeply. requesting an injunction while the legal debate is settled. all right. the ukraine peace deal negotiated last week on the verge of collapse this morning. pro-russian forces continued pounding ukraine's government forces and kiev said it will not pull back heavy guns while the truce was being violated. the eu attempted to keep pressure on russia releasing a new list of sanctions. angela merkel called that situation, quote, fragile. and we also have a bit of breaking news this morning. a shakeup at starwood hotel. the ceo has resigned.

company has named adam aron. the former ceo of norwegian cruise lines. starwood will conduct a search for a new chief executive and will consider candidates they say both inside and outside the company. as michelle said in the last hour, when you announce an interim ceo without announcing a new permanent ceo, you know there's a problem. >> you were clearly doing something that surprises the markets or wasn't intended. why did he resign? >> if it's a performance issue and we looked at the stock performance relative to its peers, that's one thing. in which case you'd see that the performance over time wasn't so great. typically if you're going to cut him off at the knees right this minute without -- >> there's usually something else. >> is there something else? that's the question. >> reaction coming in as you might expect. jim cramer tweeting earlier he likes the change at the top. he thinks the company can prosper under vail resort

ex-ceo. that's who adam aron is. we'll hear from cramer later this morning on what his take is. market's going to react all day to this news. i don't know if that chart was correct, by the way. it said unchanged. >> free market. >> yeah, but it looked like it was up. i don't know. so anyway it's going to be a mover, clearly. my read. >> yeah. your turn. >> stocks in rally mode. with climbing oil prices giving the energy sector a boost, in record territory. here's a look at futures at this hour. could be lower for the s&p and dow. but not for the nasdaq. nasdaq's been on fire and has an implied open up a point. joining us now brian belski and jeremy siegel. gentlemen, good morning. professor, to you first.

because greece is so topical, are you getting worried about a deal not getting done and how that could upset your bullish forecast and some others? >> well, you had a guest on earlier and i think he had it absolutely right. it's what i've been saying. has no mandate to leave the euro. all the polls in greece said 3-1 they don't want to leave the euro. so he's playing a game of chicken and going as far as he can. but very clearly he'll have to give in at the end. he wants a little bit he can take back to the greek population and merkel doesn't want to give very much because she doesn't want a renegotiation from portugal and spain. so they're going to go on that line. but i do not see anything you know a collapse or a grexit.

i do not believe that's going to happen. we'll muddle through it. the ecb will kick the can down the road again. and finally there's be some kind of negotiation. really no way out of it unless they want to leave the euro which the people don't, there's no way they cannot pay the very low interest rates that the ecb has given them on most of their government debt. >> brian belski you're optimistic for the year. you're looking 150 s&p points from where we are right now. >> we are, scott. good morning. i think the pain trade is clearly if the market goes higher. it's one of these things. i'm running out of words to explain what this market is. it's a stealth bull market but it's like portfolio managers are masochistic. they can't wait for it to roll over. they're looking for things to be negative. fundamentals in america could not be stronger continues to sift higher. volatility i think will be risen. higher this year especially

given what's going on around the world. make the pain trade higher. market is going to continue to sift higher this year. and that's why you want to own very consistent stable ie quality growers right here in the united states. >> you think the fed moves this year, brian? and how could that impact the way you view the market? >> we think it does. we think that's actually a positive thing given the fact the fed's going to have to move because the economy is improving. i think what's happening with this unwind of commodity prices is just a final unwind of the prior trade. and the prior trade was anything but the u.s. meaning emerging markets, europe commodities, credits, small cap. and i think that pain trade to finally feel on the downside is bringing people back to what really counts. that stock picking. that's assets. that's balance sheets. that's earnings. if you look at all those things companies in america are the best position. we're going to have some volatility. but we think it's a positive

thang they do raise rates. >> don't you think the strong dollar which is already having an impact on earnings is going to remain a significant story? and if one of your students sitting in class says make the case as to why the united states is where the values still lie, the best place where our money is and not a place like europe. how do you make that case? >> well, you're certainly right. the high dollar is a challenge. i want to comment on what brian said. i am a little concerned that the fed is too anxious to raise. i just saw my good friend loretta mester this morning. the headline she thinks that june might be right. i personally think that that is too soon. you know one thing -- everyone talks about how very strong the employment reports are, the payroll reports. what they're not talking about is how amazingly weak the gdp growth is in light of this

strong employment. we've just had terrible productivity growth. we are trying to explain it. that concerns me a little bit. i think it would be premature for the fed to say everything's fine. let's tighten in june when the rest of the world is still going towards zero and even negative interest rates. you're right, that will send the dollar even higher. higher dollar is equivalent to tightening credit on demand. there are some economists that estimated the dollar increase is almost like 50 75 basis points. they don't have to add another increase on top of the dollar. i would very much prefer that looking at all the situation that we don't see an increase until the end of the summer given the data that we're seeing right now. >> how messy does the market potentially get, though? if you're suggesting that you know if the fed does move this year in your view that would

clearly be a mistake. what impact would that have on the stock market and its reaction to that? >> well when i -- not necessarily this year but as early as june. and i want to see growth better. i don't want to see the dollar continuing to rise. because there are some economists that estimated the dollar increase, that negative effect on exports offsets a lot of the good effect of lower oil prices and gasoline prices. so you know we can't ignore the -- it's great the dollar is going up. we buy cheaper stuff abroad. it shows the promise of the u.s. but that does have economic effects. my thought is the fed would be a mistake to raise in the near future. >> nasdaq, we're on 5,000 watch again. you at all worried that the nasdaq is just too high?

>> no. we're not. i mean because if you take a look at where the fundamental strength is coming within the nasdaq and certainly technology stocks, it's what we call the old bricks and mor tack tech. the apples intels those types of names that continue to sift higher. not only due to balance sheet strength, but earnings consistency. we're not worried. i think again that's -- you're more of a whistle blower fear factor. if you're going to trade like that markets are probably going to add higher. >> thanks so much professor, brian. talk to you soon. >> thank you. coming up when we return stocks on the move this morning. we'll tell you what to watch ahead of the opening bell. then legos head of north america is here to talk about the company's latest franchise tie-ins. at the bottom of the hour we've got george pataki on a possible run for the presidency. then the ceo of snap-on weighing

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and then there's macy's at underweight. the largest investor wants the ceo ousted at tempur sealy. and then imax downgraded to hold from buy at canaccord. i think they're doing just fine. at least in the sorkin household. >> macy's got my attention more than the other calls. i think that's interesting. >> because everyone loves macy's. >> with good reason right? they've done well. lundgren is -- >> yeah. >> it's not so often you see an underweight on that. >> by the way, i don't think that was a -- i saw like two from the report. i think that was more of a call on just how much the stock valuation was than a performance

issue. >> if you look at a couple years, it probably would be. have you seen this video? check out this close call on tape. a reporter for an nbc affiliate. there it is. the camera was rolling when all of a sudden on a snowy road an suv careened out of control, crashed into another vehicle and came barrelling straight toward the camera. fortunately the vehicle stopped within mere inches of the camera. >> also looks like nobody got injured. >> right. i mean wow. that was so close. >> wow. look at that. >> i don't know if there was an actual photographer standing there or if it was just roll but the guy didn't -- or girl who was shooting it didn't flinch. >> it was probably a guy holding the camera which is typical. you're trying to get video of driving in a car. >> the camera didn't move. >> look how it goes out of control.

>> i know. >> he was on sticks, we're told. >> really? that's a tripod. >> kudos to the photographer. >> i know. >> makes my stomach go. coming up the toy company that has passed hasbro and mattel in sales and posted ten years of rising sales in the u.s. lego head of north america is here with some new offerings including a new movie tie-in.

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♪ that is awesome. sales of lego surpass hasbro and mattel as building sets have seen the largest and fastest growth among toy categories. joining us now to talk about is the north american president of lego. also with us is our own morgan brennan. she's covering the new york toy fair which brings you here to snowy new york this morning. good morning. >> good morning. well, thanks for joining us today. >> thanks for having me. >> lego. double digit growth. 14% sales growth in the u.s. last year according to npd group. this is a company that's been around since the 1930s. what a driving that growth?

i mean we're talking about a company that has surpassed mattel and hasbro in terms of sales looking at that data. why now? why is this happening now? is it the licenses? is it the fact you expanded to girls? is it "the lego movie"? >> i think it's all of the above. the success we're seeing is not something we've seen recently. we've had ten consecutive years of growth. we believe it's because we stay really relentlessly focused on making sure that we talk to kids on their terms. we constantly check in with our users and make sure we're relevant to them at all ages and stages. whether it's the movie side or whether it's the core creativity. all of those places we try our best to spread our portfolio. we are very focused as one brand. >> i don't want to take scott's question, but we do have -- >> we were both wondering the same thing. >> the question we have as parents who buy this stuff, why so expensive?

the margins feels like it's got to be incredible. >> first and foremost lego is not expensive. >> you say they're not expensive? >> really the large boxes, you can't get for under 100 bucks. >> you don't love your children? >> well i do but after like the tenth lego box comes in the house -- >> the question is how long do they play with it? >> it's really how long do we play with it. >> how do you determine the price? >> we determine the price, of course, from talking to our consumers and shoppers and understanding what's reasonable from their point of view. and then we truly believe that the value we bring in terms of longevity of the play the system of play. you don't buy a lego product and play with it for a period of six months or so. it grows with them. therefore it's a toy -- >> how do you feel about the company plaey? you effectively rent -- you pay

a monthly fee. >> we've done that. >> and they send you the lego. >> you put et together and then put it back in the box and send it back. >> is that good or bad for your business? >> it's always good when kids get an opportunity to play with lego. that's a starting point. we see a lot of kmply kagss with that model, but it's not our business. i won't comment further on that. >> back to your call why they price set where they price set. where do you manufacture? >> most of what we sell in north america, we manufacture in mexico. >> that should lower prices because manufacturing in mexico is cheaper than in connecticut. >> we focus on the value we bring to the consumer. >> how much you can charge in the market. >> yeah. >> also i've seen the huge licensing fees because there's a lot of products obviously, that are tied in with others. >> there are marketing fees. we have elaborate customer service where kids can call in if they have missing pieces. there's a lot more to it than producing the toy. >> is there another company you

think of as a competitor. we use another company in our house. they're a german company too. >> we're not german. >> i apologize. who do you put on the list of who you're competing against? >> we are really focused on our stake holders. that is successful throughout the years. we're not watching our back. we're looking forward. >> there was never a -- you only make lego right? you make bricks. that's the only thing you've ever made. and you're never going to buy another project. you're never going to try to be a bigger toy company that has multiple brands. >> that's not our intention. we have no plans to do so. >> what is this lego bionical? >> that costs $200. >> you can get that for $12.99. there's many you can get for $4.99. it's what we call construction. you build action fill yurs. so it's less building.

and more role play. it's kind of a clone between construction and action figures. >> earlier this year hasbro held talks with dreamworks animation. what did you think of that? >> you know probably the same as rest of you. that was strange and it didn't go far, right? >> you don't think the idea of a toy company hooking up with a movie company makes sense? >> it probably does. i mean i'm sure because i think hasbro is already pursuing a strategy of becoming more engrained in the content space as we all are in the toy industry. because we know that content and story telling is -- >> do you have an app for lego in. >> oh, yeah. plenty of apps. digital is definitely a focus of ours. >> how do you take this very analog form and make it work in the digital world? >> so we have lego won the eco-toy of the year where we try to blend the physical world and digital world. so kids build something in the

physical world, they scan it with their iphone and then it builds into 3d on their app and they then play in the digital world. so that's one dimension of it. mine minecraft, you can make the physical world of your digital world. >> that's interesting. one of my colleagues is e-mailing me saying you should open recycling centers for a discount. you finish playing with it you bring it back somewhere and you can recycle and resell it. >> it would make sense if the notion of finishing playing with it is true. >> i know. but come on. in all honesty, my kids love legos, but my older boy who's 9 now is sort of done. now my 6-year-old is onto it. >> they now just -- >> but tastes change for kids as much as they do for anybody else. >> taste changes, but the core product is exactly the same as

it was 50 years ago. you might want to store in the attic for awhile, but the grand kids will play eventually. >> we're being wrapped now, but i have a bone to pick. i was one of those kids who loved. for me it was choice of pirates and robots. why have you just now in the past years expanded to girls? where were they when i was a kid? >> well lego products have always been gender neutral. we always had girls playing from the day we started. in most recent years we were allowed to have a more meaningful for girls. >> i'm just jealous. >> last question. you suggest they last for a long time, do you advocate super gluing your legos together? >> no. that takes away the whole idea. the idea is you can keep building and rebuilding. so why would you do that? >> and there's a new movie coming out? >> yes. >> thank you for coming in. >> that was fun. >> always. appreciate it.

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welcome back to "squawk box." among the stories front and center, gm says it received another 75 claims last week for ignition switch related compensation. that brings the total to more than 4400. homeland security could shut down at the end of the month because of a budget fight. he says he'll blame senate democrats if that happens. shocker. and a rough vacation for twitter ceo dick costolo. he said day one skiing fractured collarbone. i'll do anything to avoid leisure. ouch. feel better. here's a fact in case you didn't know, sex sells. that's the lesson from the box office over the long valentine's day weekend. "fifty shades of grey"

shattering expectations bringing in more than $90 million in its first four days in theaters. they were expecting the movie to bring in $60 million. it was the largest february weekend opening ever. and the biggest ever r-rated seller on fandango. >> also federal railroad and hazmat officials in rural west virginia today trying to figure what caused a fiery train derailment. the csx train was carrying more than a hundred tankers of crude oil. it slammed into a house. a 300-foot fire ball thick black smoke blanketing two small towns. app thousand people were evacuated. one tanker landed in the river causing concerns about contamination. one treated for smoke inhalation. no one else injured. that's the good news in that. amazing images. the s&p at an all-time high. the nasdaq nearing levels not seen since the dotcom boom. dom chu joins us with more. >> good morning, scott.

the one sector we're going to want to focus on today is the technology sector. not just because it's theest biggest one in the s&p 500 but because it had the biggest comeback in the last week. it's up about 2%. so maybe it's not a lot to hang your hat on but the bulls are saying at least there's a little short-term momentum to the upside. if you look at the s&p 500 technology side of things you can see this particular sector over the past week was up almost 3%. the best gaining sector over a one-week basis for the s&p 500. that's a good sign here for at least some investors. we saw a bit of that selling pressure. a lot of people taking money off the table at the end of last year in tech. they're maybe dipping their toes back in. if you look at the stocks that led higher for the entire sector, there are big nams here big moves here. up 9% just over the past week here. data up 10%. micron up 10%. then akamai on the activity side

in terms of technology and making the internet go faster those shares up about 13%. but of course these names are big and their moves are large, but there's one company overall that drove things higher for the technology sector. some investors are at least finding a renewed affection here with apple shares. they are up about 5% over this past week. again, this is a big deal because apple is the largest company in the s&p 500. it carries a lot of weight when these guys do well. we'll see if the momentum can continue for apple. really what it comes down to for these guys is whether or not apple can drive the market if urt. that's going to be a real question. >> a market stock as some say. it helps drive the market itself. and then when the market goes up, that drives apple even higher too. >> it carries a lot of weight. this stock up 5% in one week did drive a good amount of the 500 tech sector. let's talk politics for the moment. the list of potential

presidential candidates is growing. our next guest says he is exploring a bid. former new york governor george pataki joins us this morning. >> good morning, andrew. nice being with you. >> you're up for this now? >> i'm up for this. >> when did you decide? >> i haven't decided i'm sure if i'm running because you can't because of the finance laws. but things are so bad around washington and the world that if you believe in your heart you have the ability to lead a complex government and not just manage it but change it and you sit it out, shame on you. >> tell me how you think about this. because i assume you look at the field, you see jeb bush there. you see chris christie there. you see the whole -- and you say to yourself i think i can dive into this thing. >> you know that's what i did the last time. i looked at the field. i'm not doing it this time. i looked at the field the last time. and everybody was for mitt romney. i thought mitt would be a good president but not a particularly good candidate. unfortunately i was right about that. i look now and i decided doesn't matter who runs. if you believe you have the ability to lead to change

washington, to protect the american people, and to win an election and i know i can win other than just bright red states and you sit it out when things are so bad nationally and globally, shame on you. >> can you raise the money to do it? >> we're going to raise enough to be competitive and get the message out. >> how much is that? >> i don't think -- i'll leave that to the experts. you know one of the things i love about iowa new hampshire, south carolina, they're smaller states so a lot of the politics is retail. you sit down like this and people can ask you directly what they want to hear from you. and they can tell you their opinions. i think that is the best type of campaign. >> andrew raises the issue how you would stand out in what is looking to be a fairly crowded field. i saw you on tv last night saying you think some folks in your own party haven't handled the issues all that well in their own right. is that you trying to stand out from the crowd or what? >> i don't think i have to do that. but i think it is absurd in the 21st century we're talking about things like measles vaccines and

evolution instead of things like going after isis before they can attack us here and reforming washington where it's so controlled by the special interests. but i think what really allows me to stand out would be 140, 150 republican candidates out there running is i have the ideas to shrink and reform washington. i have done it. you know i ran a big state for 12 years. i can win an election beyond bright blue base -- bright red base in a bright blue state. i think those are things that are different. everybody could say i'm going to do this or do that i can say i've done it. that's very different. >> how do you -- i mean this goes to the question but how do you compare yourself to jeb bush? if you think he's sort of the front runner in all this at least from the money perspective at the moment, i think of him closer to being a centrist. i think of you as closer to being a centrist. what's the distension? >> part of it is i'm not just going to reduce the size of government in washington.

i did that when i was governor. we have to reform it. right now there are too many special interests making the decisions in washington. i'll just give you one example. there are over 400 former members of the house and senate who are registered lobbyists in washington. half the senators who leave stay there and lobby after they're done with their terms in office. i propose a reform. you serve one congress house or senate, lifetime ban on ever being a lobbyist. we need to not just tinker around the edges. we need to fundamentally change washington. >> and on the issues -- >> i got you speechless there, i'm shocked. >> no no. i'm not sure jeb bush is far away from you on those issues. >> i propose reducing the size of the federal government by 15%. i did it. i don't think anybody else has. i think we have to throw out the tax code and start with the bowles simpson reforms and getting rid of all the loopholes and credits and have three simple lower rates. i don't think anybody else is going to say that. when it comes to national

security i don't think there's anybody who will be as aggressive and understanding that if we just look the other way while things like isis behead christians we did that before. i was governor on september 11th. i saw the difference in thinking. we don't have to worry about it here they said. we do. >> would you put boots on the ground? >> yes, i would. i think right now we are at greater risk of being attacked in the united states than in any time since september 11th. and i think we have to attack them there before they attack us here. >> so you would re-engage in a new war? >> not in the same way. i think there are two false paradigms here. one is we have to have a massive army, spend a trillion dollars and create a democracy where one never exists. i wouldn't try to do that. the other is that we can simply look the other way, tinker around the edges and think isis is not going to come after us. that's not going to work either. what i would do is have massive strikes, whatever quick strike force, boots on the ground is

necessary to deny them training camps, planning recruiting centers, financial hubs. and then get out. >> for how long? >> i would think a very limited time. get in get out and if you had to go back -- >> it sounds like something that will go on for years. >> i think the quick strikes will have to occur again and again. but are we going to just sit back? i mean what we're doing now is not going to work. president carter goes on national tv and says his model for going after isis is yemen. yemen does not control by -- >> did you say president carter? did i hear that? >> president obama. president carter was much stronger globally than obama, forgive me. >> do you worry at all there is going to be too many candidates running? some people argued the last time around there were so many debates debates, so many candidates everybody just beat each other up that it actually made it harder for the party to win. >> i don't think so. i think the republicans had a good chance of winning after the

nominating process was over. i think it came down to the campaign and during the course of the campaign obama ran a better campaign than mitt romney did. i think it would be better if there weren't as many but i think it's good for the party and the country that there are a lot of qualified people looking to run. >> governor thank you for coming in. we look forward to watching as this all plays out. >> when do you make your official announcement? >> no time frame set for that. >> good to see you. coming up american companies finding ways around the west coast port strike. snap-on staying busy despite the shipping difficulties. that ceo joins us next. and the nasdaq nearing 15-year highs. we'll tell you which tech stocks are leading that rally. 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. the 2015 c-class. see your authorized mercedes- benz dealer for exceptional offers through mercedes-benz financial services. doug, we have the results, but first, we have a very special guest. come on out, flo! [house band playing] you have anything to say to flo? nah, i'll just let the results do the talking. [crowd booing] well, he can do that. we show our progressive direct rate and the rates of our competitors even if progressive isn't the lowest. it looks like progressive is not the lowest! ohhhh! when we return we'll find out whether doug is the father. wait, what?

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tdd# 1-800-345-2550 schwab trading services. tdd# 1-800-345-2550 your go-to for trading know-how. tdd# 1-800-345-2550 ♪ ♪ west coast port dispute heating up as all 29 ports shut down operations over the weekend. the nrf, that's the national retail federation, say these ports account for roughly 12.355% of u.s. gdp. one company snap-on is finding a way around. they're also trading at an all-time high. when it was first listed in 1978 more than 500% over the past 20 years.

with us on set is the chairman and ceo of snap-on. good to have you here. >> good to be here. >> let's explain what you do. you manufacture and make products you sell to auto repair shops so they can fix cars. is that right? >> we sell to technicians, actually, and to the shops. >> the port shutdown is it hurting you? i imagine it's manufactured overseas or no? >> 80% of what we sell are made right here in america. >> why? >> well the reason is because we solve a variety of problems. so we have 65,000 skus. so we use a variety of products like complexity and flexibility. those are inherent advantages if you're up close to the customer. so we tend to make in the markets where we sell. right here in america. so the strike doesn't really affect us. it affects some for what we export and little bit we import. >> none of what you've told me

tells me why you wouldn't be manufacturing in mexico or china other than the united states? >> because part of the value creation we have is that our manufacturers and the people, the design engineers go right into the shops and figure what will solve their problems. we make hand tools. guaranteed for life. >> for life? >> for life, the hand tools. why is it we have a business at all? and the answer is -- >> that's the theory. >> the reason is because technology in automobiles keeps changing. keeps changing constantly. we offer you hand tools that get you inside the new compartments. we also offer things like laptops for cars that will tell you what the car is saying and give you its heart beat. >> so you have to start employing all sorts of software engineers. >> exactly. but the key value creating mechanism is the actual observation of what will release the work make the work easier

in the garage. that work's not only in automobiles. it works in other critical places. that business is a big business for us. >> what do you think about apple maybe designing a car? have you heard about this? >> they can design a car. tail actually, if anybody changing technology -- if the president said he was mandate inging everything a gallon tomorrow i would kiss him. because it would mean new tools and laptops for cars. we would sell them. >> you're like the people that want a complicated tax code. >> cars keep changing. look under the hood of your car in a 2014 car. look under the hood of a 2004 car, you'll see the difference. the number of engine codes have changed from 50 to 5,000. >> the deep depression as a result of the financial crisis good or bad for your business? >> it doesn't make any difference. our business doesn't move with new car sales. it moves with the changing

technology and aging of the vehicles. cars are 11.4 years old. that is good for our business. >> people aren't buying new cars it's better for your business. >> if you want to testimony to this, that particular business which is what you're focusing on. 37% of business grew in the fourth quarter. it has grown more than 6%, 18 of the last 19 quarters. so this is a business that's expanding. we like to say we have these vans, they're limited by the driver. the driver's time and the drivers. we're expanding the productivity and are bringing out more products better than ever. for example, the laptops for cars, it's a technology that is underrated. when you plug that laptop in in a garage you not only have to read a bmw, you have to read 30 badges and maybe 30 years of cars. we have that data. we'll tell you what the car is saying. we'll tell you how to put it through its paces. and we'll tell you how to fix it. for example, we have hundreds of millions of records in a data base that will tell you if you own a honda that's seven years

old and has a check engine light, 92% of the time this is what's wrong. >> what is the average life expectancy of a car these days? >> it's going up. i drive through parts of america every day. sometimes there's more driveway space taken up with old cars than the house is taking up really. it's gotten older every year. and what's happening is is the technology that is being put into these cars and new cars are moving into the independent garages as well. >> are you primarily a u.s. domestic company or where's the biggest revenues come from? >> u.s. but we have this automotive repair business that works very well. now we're rolling the snap-on brand out of the garage into aviation aerospace, oil and gas. that grew at 9.4% the quarter before. 8.4% the quarter before that. >> still a small percent of revenues.

>> that's about a third of our revenue. basic auto business you're talking about is 37% of our business. we sell to shop owners and managers which is another quarter of our business. then if you think about building an emerging margt, one of the cool things about this is the repair wave hasn't started. selling more new cars in china than ever before right? >> pretty soon they're going to have to start fixing them. >> we're there to take advantage. we're kind of happy. >> all right. thanks for joining us. >> okay. thank you. >> good seeing you. be well. coming up, some big movers on this tuesday morning. i almost said monday morning. we're going to have this list of stocks to watch before the opening bell. plus new details of an nsa spy program. that story is next.

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enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more. welcome back to "squawk box" this morning. a moscow based security company reportedly hiding spy software within hard drives made by western digital seagate, toshiba, and other manufacturers. found infected computers in 30 countries. among the targets, governments, militaries, telecom companies, banks, energy companies, and activists. surprised? not really. >> no. >> i wonder what seagate and

these other companies knew if they knew anything at all. i guess as you say, what they would have to say about it? >> and what it does to sales. this goes back to the larger issue of future sales from u.s. tech companies and how foreign buyers now are much more worried about doing business with both telecom companies and it sounds like har ware companies. >> and an unwillingness to buy them. we've seen a dropoff because of the fallout from spying. >> and these new phones said they were going to encrypt everything. you heard there was an outcry here because they couldn't get into them. that was arguably one of the reasons they did that was not just to make it more secure. but also because there were countries like china that might not have actually been so happy to sell these things if they felt the u.s. government could get inside them. >> whole new world. >> there you have it. let's look at stocks to watch this morning.

medtronic earnings beat. american express downgraded citing near term earnings visibility. sutherbys downgraded from outperform. the price target remains $45. lear corps hiking by 25%. also raising its share repurchase program to a billion dollars. coming up when we return, a squawk market master on a possible greek bailout deal. mo hem med el-erian joining us. as we head to a break, look at u.s. equity features at this hour. it could all change as we get closer to the market's open. back in a moment. automotive innovation starts... right here. with a control pad that can read your handwriting, a wide-screen multimedia center,

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ready to jump into the car-making industry? we discuss how the move could be a game changer as the final hour of "squawk box" begins right now. ♪ >> live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" right here on cnbc first in business worldwide. i'm andrew ross sorkin with michelle caruso-cabrera and scott wapner. 15 years later we are on the kus of reaching nasdaq 5,000 yet again. we are going to discuss if this is the right time to get into tech. before we get there, scott wapner has the headlines. labor secretary will attend negotiations in the west coast ports dispute today. drawn out talks between the dock

workers unions and their employees have come to a halt. stocks in greece under pressure. talks between the greek finance minister and his eurozone counterparts failing to reach a deal over athens debt crisis. and president obama's immigration policy halted bay federal judge at least for now. the judge is prohibiting the white house from running programs that would offer deportation protection and work permits to as many as 5 million undocumented immigrants. a few of the stocks on the move this morning, transocean ceo stepping down. the offshore drilling giant also slashing its dividend as it deals with falling crude prices. starwood hotels ceofrits has resigned. he will be replaced interim by aron. cutting its guidance this year. citing weak u.s. sales and the negative effects of a stronger

dollar. we are less than 90 minutes away from e the opening bell on wall street. the dow would open lower by two points. the nasdaq higher by four points. is there a big reaction in europe in not so much more. france higher by a third of a percent. jernl germany slightly lower. greek talks as i said breaking down yesterday from what i can tell they never got started. here to talk about the fate of the eurozone and its impact on the global markets is mohamed el-erian. he is allianz chairman. good to see you again. >> good morning, michelle. >> i'm going to start backwards here. scott spoke with david temper last year. he said if greece leaves the euro 300, 500 points maybe but ultimately manageable. do you think a greek exit would

be cataclysmic for the world markets? >> no. but it would cause a lot of volatility and some losses in short-term. the reason it wouldn't be a mass ivica it's a fee is europe has done a lot to be able to navigate a grexit. there are certain things it cannot do. they cannot write legal contracts. so there will be short-term chaos. >> the answer to that question is crucial because it goes to the heart of who has more leverage. the greek finance minister describes the sipgs as a house of cards. you let greece go everything else is going to start to fall. he says my leverage is italy. italy's interest rates will rise. the germans, however, say we're 19 people climbing up a mountain. we're all connected bay rope. we've got a weak player. maybe we should let this person go. you sound like the germans have the leverage here. >> so i love that characterizization that you put up earlier today. if you think of the greek

position as being over here call it a zero. if you think of the german position being here the climbers, call it a ten. we're at a six. right? so we're somewhere here. this is why these negotiations are proving so difficult. there is no decisive element one way or the other. it's somewhere in the middle. probably more towards the climber characterization than the house of cards, but it's not decisive in you have to make one side feel that strong. and that's why these negotiations are going to continue. >> so on the risk meter, i guess, knowing what we know about the situation in ukraine and this cease-fire already apparently not holding, is that a bigger risk right now to the global markets than greece? >> they're both big risks. and the biggest risk is this illusion of liquidity. people actually believe that they can, quote, rationally bubble ride until the turn. when the turn comes, they actually believe they're going

to reposition themselves. history tells us whether it's a taper tantrum or whether it happens earlier this year there isn't as much liquidity as people like to think there is when there's a major change. so the major concern is you get a change in the paradigm. then people discover there isn't enough liquidity. >> the current ceo of deutsche bank was on last week and when it comes to the market risks out there, lack of liquidity is a huge one. we heard this from larry fink. we've heard this from -- explain to the viewer at home what does that mean? does that mean a huge selloff? a credit crisis? play that out. >> so it means a selloff. and then it means dysfunctional markets. then and everybody is going to look to central banks hoping they will step in again. look there's been a structural change, a functional change. the broker dealers have gotten

smaller and will continue to get smaller. the end users have gotten bigger. so when the end users decide to reposition and they all have to go through the middle they find out that the middle isn't as robust and there isn't the risk willingness to take risk in that middle. what we have is a structural change in the capacity of the market to provide liquidity. and if it's tested then you get not only price corrections, but you get market stress. then everybody is going to look at central banks and we're going to wonder whether central banks will be -- >> it's going to be that big of a crisis that you need a central bank. >> when you talk about a correction, what kind of correction are we talking about? a 5% correction? 10% correction? a true correction is 10%-plus. where are you? >> so if -- and it's a big if. i'm not predicting. this is a risk scenario. but if there's a fundamental change in the on the parting paradigm, if people no longer believe we're improving u.s.

economy, if all that changes, then you're looking at at least a 10% correction and at that point there's going to be a question of what holds. look at the oil market. all you had to do in the oil market is change a simple paradigm which is that saudi arabia is a producer. the minute that paradigm change changed, you get a massive correction in the market. the biggest risk out there, i agree with those who have said it before. is there's an illusion of liquidity. there isn't as much liquidity as people think there is. >> a lot of fears about the etf market in particular. so many retailer erer investors out there think they can sell them at any time. there's a question as to whether or not that is going to be true when the moment comes where, you know, everybody's running for the exits at the same time. they'll see a gap down in prices that they never expected. am i being alarmist? >> you're not. they'll get it at a completely

different price. they're going to have to pay a price for that liquidity. i think most people don't realize that that's the case. i mean we've had enough episodes in the last two years to pay attention to this issue. the big hope ask that the central banks will continue to be the market's best friends. but there is a limit at some stage at which the reposition becomes too big for the markets, for the central banks to be able to accommodate it. >> you want to weigh in on this premise or question that larry summers puts forth as to whether europe is in danger of becoming the new japan? >> so i do think europe is in danger of becoming the new japan because europe has yet to deal with this fundamental issues which is revamped growth engines, a better composition of demand and lifting the overhang. in addition, architecture is incomplete. so the risk is there. i think the biggest theme remains divergence. the fact the u.s. is getting

better. the fact that the fed will be hiking rates in the middle of this year. meanwhile, the rest of the world is struggling. we've already had 16 rate cuts this year. so this divergence in economic performance and monetary policy is the biggest theme. it has served the macro hedge funds well. i think it will continue to do so. >> but what would that do then to the global economy? europe becoming the new japan would theoretically have much more dramatically negative impacts to the world than just japan being japan. you follow? >> correct. but don't forget the u.s. is getting stronger. >> but could it -- i know. but could you -- i hate the decoupling thing, but is it still relevant in a period of time where japan is so underperforming and is in a long period of underperformance that it has a drag negatively on the world including the u.s.? >> so you have four sets of

countries. you have those improving, the u.s. you have those slumping japan, the eurozone. >> you have those stabilizing, china. then you have the wild cards. russia. somehow all this has to be reconciled through one market the foreign exchange market. the question you're asking is can the foreign exchange market act as the main shock absorber for this multi-speed, multi-policy world. this world of divergence is going to put tremendous stress on the exchange market. it's an open question as to whether these large movements reconcile or break things. >> well it is the area with the most liquidity and heretofore has the consensus on that. >> i think the dollar gets stronger. i think that the road we're on and this is my major hypothesis it's a road for awhile and then it's going to tip. the probability of it tipping in a worst equilibrium or better

equilibrium is even. which means investors should stay liquid. they should go up in quality in terms of bond exposure. they should increase the beta and alpha exposures. they should pay close attention to the foreign exchange markets. >> that means a lower return in a lot of respects, right? on a higher quality bond? >> i think that's the reality. that this world can no longer produce a source of returns that we've enjoyed in the last few years. >> you're not talking about the new new normal now, mohamed, come on. >> no. the road we're on ultimately is going to end. then we're going to tip one way or the other. and there's not enough evidence for me to tell you with conviction it's going to be "a" or "b." and that in itself has important investment implications. >> good to see you. thanks for coming on. >> early for him. not really early for him. are you -- i know you're always e-mailing. you're still awake at these crazy hours even though you're

not doing your pimco thing, right? >> yeah. i enjoy my early morning. >> if you work on the west coast in the securities markets, you get up early. but you leave the office early. your life is a tradeoff. >> nice to see you, mohamed. coming up with a footprint of about 6 million merchants first data is responsible for about 45% of all credit and debit transactions. the company's ceo joins us next to discuss security. and later the effects of a port slowdown on autos. plus have you missed the tech rally or is there time to get in? and then it is jim cramer from the new york stock exchange as we get ready for the opening bell. "squawk box" coming right back.

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welcome back ta "squawk box." take a look at the futures right now. no deal yet in greece. cease-fire apparently breaking down in ukraine. and that is the market picture. not so bad on this tuesday morning. the s&p and the dow with an implied open slightly negative. nasdaq implied slightly positive. remember it's the nasdaq and as i've said before, we're on this nasdaq 5,000 watch once again. levels we haven't seen in an

awfully long time. since the year 2000. but there we are. we're only like 150 or so points away. >> took us about 15 years to get there. >> that feels very japanlike. let's talk data. the world's largest payment company is getting ready for a transaction revolution coming later this year. that's when the more secure chip card technology will go into effect in this country. also looking to expand in places like india where our guest just came back from. the man behind the transaction turnaround at first data is frank bisignano. before we get into the earnings story because it's a good one after what was a long period of red, let's just talk about sort of security for a moment. i think people -- that's front of mind. how far -- i know we're all going to get these new chips in our card. i've already gotten one. how long is that going to take to roll out and how much more

secure does it actually make us? >> well first way to think about it is we're going to issue 100 million this year. we issued 25 million last year. i think also in october you'll see evm rules change. and merchants will be liable for fraud. we're bringing technology in there to the point of sale to encrypt. we have a world class product which will encrypt it. i think between the chip and encryption at point of sale which already exists there will be much higher security. much higher security. >> and how much do you worry about not just the security at point of sale but the back end security? >> all day long. >> all day long. >> every day. and i like to tell people we've been working on security a long time. it was called information security. it was called cyber security. you know before that it was

data security. but i think what's important to recognize is even on friday government coming together with business. everybody collaborating. it has to start with that collaboration. but i like to say we like to protect the perimeter, surveil the interior. i think it's very important. >> what's your nightmare scenario. what do you worry about waking up one morning looking at your blackberry or whatever looking, what is that headline for you? >> i think about a lot of nightmare scenarios, but obviously hacking into the money systems. you know i worry about tremendously. i've worried about that my whole career. that's why surveilling the perimeter and interior thinking of people inside and what they can do along with people on the outside what they can do. >> i think the retail customer their nightmare is they wake up

log into their bank account, it says zero. the probability of that happening is what? >> the probability of that happening to an individual is real. the probability of that happening systemically i think our financial institutions are very very committed to not having that happen. and defending it and have tons of defense against it. >> to your point, we now have these reports of the biggest bank heist in history. right? these hackers busting into these global banks and stealing a billion dollars. is that number small to where it could possibly go? >> well i think a billion dollars is big no matter how you look at it. where i grew up in brooklyn that's a large number. >> where i grew up as well it's a big number. but still, my point is are we going to see larger and larger and larger frauds like this? >> i think you'll see defense get bigger and bigger and

bigger. i think, you know -- i remember in the bank when i was dl i -- there, i used to talk about how many times a bank branch got robbed. versus how many times a perimeter tries to get penetrated. so it's crime. it's crime. it's going on. but, you know all the institutions have built up tremendous defense and continue to do it. >> but it sounds like we're on this ultimate -- it's going to be a continuous arms race. it reminds me of the police complaining about l.a. gangs and we need more. >> it is an arms race. >> that's it. forever. >> yes. and it's been that. it's been that. if you've sat inside institutions and you've overseen these disciplines for a long time you recognize going back to 1990s early '90s people working on the defense of information and data. it just happens to be where the

money is. >> you worked with apple on this issue. how much safer is apple pay than using a card. >> i think it's very very secure. >> much safer? would you prefer people use apple pay than a credit card? >> i'd prefer them to secure their data at all times. you know, i actually -- >> but straight up. i'm just wondering. if i had a card or this device if i wanted to be more secure what do i do? >> depending on your card use the device. >> and how many years away are we that i won't have any cards in my pocket? >> i think a long time. because, you know i think about trends in technology i've watched it for a long time. think about bank branches were -- in 1990 people were talking about less of them. you're going to have cards in your pocket, but you'll transact differently. >> getting closer to ipo?

2015? this is the year? >> we're trying to build a great company. i think we're going to be very very smart about how we do this. we've invested a lot. you've seen us make $200 million more this year. you saw our top line growth. >> how many quarters in the green before the market will accept an ipo? how about that? >> i think it's about revenue growth. i think it's about revenue. i think, you know growing ebita, look. we plan growing. you look at free cash flow for us. much better story. we had a company at $24 billion in debt. we've got 20 now. we're a 5.4 to 1 debt equity ratio. we're at 2 to 1 today. i think we're working on the transformation. >> we didn't get to talk to you about banking. >> i love banking. >> you do? >> i partner with banks all day. >> but you must not miss the big

bank world and the world of regulation and everything right now? >> he's dealing with it on the card side. >> yeah. i feel like we're an extension of financial institutions. so, you know we have as much compliance oversight as any financial institution. >> come on back. we have a lot to talk to you about. >> thanks. pleasure. >> thank you. coming up is apple ready to jump into the car business? phil lebeau is going to join us with new details on that buzz story. and when it comes to the silver screen who's the richest movie moguls? the net worth of some of these guys will shock you. the numbers after the break. "squawk box" will be right back.

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when it comes to making a mint from the movies few hit the big time. but acting talent and the right funding, some get very rich. ultrahigh net worth wealth x has released its list of the american film industry's richest individuals. here are a few who top the list. steven spielberg. his estimated net worth only $3.3 billion. famous movies include "e.t." and "jaws." also one of the cofounders of dreamworks studios. arnon milchan worth $5.2

billion. most famous movie probably "pretty woman." and then there's george lucas whose estimated net worth is $5.4 billion. >> how could the other guy be worth more than lucas? >> after "star wars," you'd think. >> i apologize. >> it's a valid and legitimate, interesting question. lucas tops the hollywood rich list. he sold his company to disney for $4 billion in 2012. maybe he should have sold it -- >> i thought he was lower. i thought we just said the other guy had more money than the other guy. oh 5.2 compared to 5.4. got it. >> see you didn't let him finish. >> that was my problem. >> just saying. >> it's great. i think it's fantastic. >> would you like to finish the reader? >> no. go for it. >> you can see more names of hollywood's richest movie moguls on cnbc.com.

>> you're kind of a hollywood content creator. you going to get up there? >> not like that. let's talk about other media news. a huge audience tuning in for the "saturday night live" 40th anniversary bash. it was seen by more than 23 million viewers. the 3.5 hour special featured more than 80 guest stars. nielsen reporting that the red carpet special was viewed by 11 million people. coming up how can ships hurt cars? a look at the west coast port slowdown. why you may be out of luck when it comes to fixing your ride. take a look at equity futures at this hour. you're looking at the dow like it would open up off about 21 points. back in a moment. financial noise financial noise

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welcome back to "squawk box" this morning. let's look at stocks in the news. investment firm calling for the ouster of tempur sealy's ceo. saying the company has been mismanaged and shareholder value has been destroyed. also medtronic reporting quarterly profit beating estimates by four cents thanks in part to new product launches. and zillow shares, they're rising. the real estate website operator saying they should close a deal as early as today. also goodyear tire shares they're gaining. 59 cents per share beating estimates by a penny. federal railroad and hazmat officials are in rural west virginia today trying to figure out what caused a train derailment. the csx train was carrying more than 100 tankers of crude oil.

slammed into a house. several cars exploded. a 300-foot fire ball you can see there, thick black smoke blanketing two small towns. a thousand people were evacuated. one tanker landed in the river causing concerns about contamination. all right. a west coast port labor dispute has hundreds of businesses stuck in limbo unable to deliver for their customers. the situation is getting so bad. it's getting bad enough for president obama to send in the labor secretary to try to break the log jam. it stretches from seattle to san diego from food producers to auto makers. they are all taking a hit. secretary perez will be in san francisco to meet with both parties today. one import that's feeling crippling effects of this labor dispute more than most auto parts. they hold the number two spot of imports in terms of volume. joining us now is the ceo of the motor and equipment

manufacturing suppliers. it's good to have you on. >> good to be here. >> how bad is it getting? >> it's getting very bad. and the reason it's of concern is it's not just impacting the motor vehicle suppliers or the automakers themselves. it's the fact it has a direct impact on the u.s. economy. the automotive suppliers are the largest single manufacturing sector in the united states with over 750,000 direct employees and an extended employment impact of over 3.5 million. so what's happening is a very serious and significant. and is already costing our industry billions of dollars. it's not nearly a new issue. it's one that continues to linger. and it's having a significant impact on the economy. that's our main concern. >> what kind of time delays are we really talking about here? >> well the delays are now going into the weeks.

you have freighters that used to be offloaded in 24 hours. it's now taking up to two weeks. you have truckers waiting in line three to four days before picking up just one container. and it's not purely an issue of imports because our industry motor vehicle suppliers, actually export over $60 billion a year to pacific countries. and so it's not going either way. so it's having a significant impact on the industry. and if it's not resolved soon that impact is going to be felt very acutely at the consumer level. >> amazing that some of these shipments that left asia in october haven't arrived. what about shipping by other means? air freight, the cost may be higher but is it an option? >> it is an option. and many are doing that. but you're right. it is very expensive. redirecting these shipments to other ports is likewise the same

thing. those increased costs are simply going to flow down to the consumer in time. it's a short-term gap measure, but it cannot be relied upon for an indefinite period of time. it's already costing billions of dollars. if, in fact the west coast ports were to shut down it would cost the american economy $2 billion a day. and even when it would become resolved, it would take months for it to get back to normal. so we're urging the parties to stay at the negotiating table. we're glad the administration is involved with it. and we believe they have to do everything they can to make a difference. >> you mentioned it would be soon that the consumer would start to see the impact. how soon? and play that out. they would see what or feel what? >> well, first of all, they're finding that the availability of makes and models is going to begin to diminish. while it's true the automakers and the suppliers in anticipation of what we're experiencing today began to add

inventories. those inventory levels are beginning to decline. and so with the additional cost and as this continues to linger i think it's only a matter of time, short-term. i couldn't specifically tell you how many months it would take. but it's going to impact the u.s. economy. you can't have issues of this significance and magnitude which is driving up costs and driving down profits for everyone along the supply chain. again, it's one that dramatically impacts the u.s. economy. and the brinksmanship that's going on right now is playing russian roulette with the u.s. economy. it's got to be resolved quickly. >> appreciate your time this morning. thanks so much. >> thank you. this is the water cooler story of the day. got us i think the most controversial here on the set. apple could be entering the car market. the news comes amid concerns that the company's stock prices too inflated now trading at an all-time high. phil lebeau joins us with what

he's hearing. wow, phil, this would be exciting at minimum. >> it would be exciting. on many levels, michelle. but let's keep in mind that apple's entry into the auto arena has happened for a number of years. what we've been able to confirm is that apple has been ramping up its work in this area. with project titan. there are several hundred workers at apple, researchers, developers who are working at a number of areas as apple is trying to expand its footprint. remember, a little over a year ago apple introduced car play. at the time it was introduced as a way for a number of manufacturers to sell to their customers and apple also selling a way for you to take your apple universe, if you will your own apple universe bring it into your car. there you see an example of how it works. it has not had wide spret adoption yet. part of that is it's still being rolled out with a number of manufacturers. the other question that has come up over the last several days is

would apple want to manufacture a car? a lot of this talk is stemmed from the fact that people have looked at the google car and they've said look google could eventually make a car. couldn't apple eventually make a car? couple of things to keep in mind. google has made a prototype. they are not an auto manufacturer. they have come out and said we don't want to manufacture cars. the people that i've talked with who are familiar with project titan, the work being done at apple have said they're at least going to make some prototypes for research and development purposes. you have to do that. you have to go to a company like that in europe and say this is what we want so that we can test out what we want to do with our expanded footprint in the auto industry. guys, if i had to take my guess right now as to what ultimately happens with autos and apple in the future, look for them to want your time behind the wheel. not necessarily for you to be in an apple car, but they want you to have your apple universe in the car.

that commute time apple time. that's the way you might want to look at this in the future. nonetheless, a lot of people are talking and saying wouldn't it be cool if we had an icar similar to an iphone? there is no doubt the auto industry is one of the areas with tim cook and the folks at apple are looking at for the future. >> on your point, if they've ordered prototypes in it's not necessarily that they plan on building cars. it's that they want something in-house where they can experiment with their software et cetera, and their platform. >> absolutely. and they may get into some hardware. there's no doubt that's a possibility there. but if you have a prototype there or several prototypes michelle, it allows you to expand the opportunities and really to try new things. and that's really at the heart of what they're doing here as they expand their auto footprint. >> cool. thanks, phil. >> you bet. okay. sticking with the apple theme, a story in "the wall street journal" details several features that had to be cut from

apple's watch. among them a system that was supposed to track your stress levels by measuring the conductivity of your skin and ekg heart rate monitoring. the programs were reportedly cut because they didn't perform consistently on some people especially those with hairy arms or dry skin. the results also varied based on how tight people wore the watch. those features could be included in the later releases of the apple watch. thank you very much michelle. >> there you go. >> i'm thinking am i dying? i don't know. >> the jawbone -- there's a new jawbone. but i assume it would have the same issues. they're trying to do the same thing. >> the next fitbit is supposedly going to measure my heart rate all the time. >> you don't have skin issues with that? >> we discussed that last week. i don't get a rash from my fitbit. >> the rash stories? >> yes, yes. coming up next we're going to talk tech. the nasdaq almost back to the

5,000 mark it hit back in march of 2000. can we get there again and should you be a buyer? we're going to talk about it as we head to a break. here's what's trending on twitter right now. "squawk box" returns in just a moment. ♪ ♪ ♪ first impressions are important. you've got to make every second count. banking designed for the way you live your life. so you can welcome your family home... for the first time. chase. so you can.

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the s&p 500 hitting an all-time high but the nasdaq nearing a record of hitting

5,000 again. have people missed the rally in tech or can they still get in? paul meeks joins us. have we missed the boat? >> i'm a contrarian and i think that depending on what companies have announced the most recent quarter, we did have a couple tech companies that even though the tide typically lifts all boats, they've actually sagged post results. there's a couple contrarian opportunities that i like because they've actually had some near term weakness. >> and how much room do they have to go? >> i think both of these stocks over the next year or so are going to rise at least 20%. >> so microsoft, make the case. >> well, the interesting thing about microsoft is nadella has been the ceo has been the ceo for a year now. i do think we'll see some sort of acceleration later this year with the release of windows 10.

and in the meantime what he has done which i think is very savvy is really positioned the company to be more of a player in cloud competing. it seems to be working. >> sandisk? you like them a lot. >> sandisk is interesting. both sandisk and micron play in flash. the interesting thing about nan-flash which is typically a command over time is that demand in that space is healthy. one of the reasons for that is it's tougher to manufacture some of these chips. and what happens is that limits supply which makes a nice supply/demand balance. >> can we talk broader for a second? i look at nasdaq when it was at 5,000 the last time. i was here at cnbc when that happened. then watching for years, dead money at the nasdaq. right? if you bought the qqqs nothing. then a year two years ago, that

market's finally started to turn and make a real comeback. what finally happened do you think? was it qe? was it simply apple? what was finally -- you know we can ask the same question about japan that finally moved after 15 20 years. what was it that made the nasdaq turn? >> i think the biggest part of the equation has been qe. not just the united states but abroad. and the tech sector which dominates the nasdaq is particularly high beta. so it has a particular boost when the world goes to riskier assets. also i do think within the tech sock tor there are four or five new themes cloud computing being just one that has become very fast growing, long runway with these themes lifting the sector as well. >> where are you on apple at this point? >> yeah i like apple. i think the iphone 6 ramp continues. i'm particularly excited about what i see in china. two quarters ago year over year

chinese revenues grew 1%. last quarter 70%. so i think this ramp will continue for a few more quarters. i think the stock gets to 150. if apple pay is successful. if the car is some day successful. if the apple watch is successful. i think they're all essentially free call options on the name. >> by the way, before we goat to other stocks the car thing. does that scare you? do you love that? how do you feel? >> i'm mixed on that. it's a huge market which brings a lot of unit volume. i know whatever apple does in the car it's going to be a cool product. the problem with that is that industry typically brings much lower margins than where the company is now. >> real quick, delta and warner. those were two on your list. >> delta is very interesting. the estimate was about four bucks per share. now it's going to be five. and borg warner is to increase

fuel efficiency and the other one over time not just in the states but worldwide to lower carbon emissions. >> okay. paul, we've got to leave it there. we appreciate your perspectives this morning. a quick reminder for everybody out there. go online to cnbc pro on cnbc.com to track the managers' picks in realtime and get analysis. when we come back jim cramer joins us from downtown new york city. find out what he's watching on this shortened trading week. check out the futures right now as well. we watch the situation is greece. we watch the situation in ukraine. and that's what we watch right now. the s&p, the dow implied to open negative. nasdaq turning as well. all slightly to the downside at least at this hour. "squawk box" right back after this. ♪ there's confidence. then there's trusting your vehicle maintenance

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back. shakeup at starwood hotels. ceo fritz van paaschen has resigned. the board member adam aron has been hired former ceo of norwegian cruise lines, nba's 76ers.

starwood would conduct a sent for a new executive and search inside and outside. jim cramer joining us now. hope you enjoyed the long weekend. you have opinions it the move. saw your tweet this morning. it appears you like it. >> adam 'a good friend. he leaves the sixers to run this. he's not a i think, at soft interim ceo, a very hard one i'm think fritz wasn't moving fast enough for the boreard. i think the board sees the opportunity of no new hotels coming in that they can rival windham, move faster and i also think that fritz kind of you know, did what he had to do changed into a hotel-like model. i think he fought it for a long time. i think aron terrific at vail and dratgreat as he runs starwood to the next level. >> what's more on the radar as a concern, i guess, unfinished

business as it relates to greece, cease-fire breaking down in ukraine. nasdaq closing in on 5000 again? >> different nasdaq obviously, without all of the service providers that dominated the top 25 at this time. look, i think a lot of people are misinterpreting greece ukraine. ukraine's going to be a sloppy truce, that's the way things are with truces. greece i doesn't know people felt there would be a deal. my pointing greece feels like what happened in the united states when we were doing debt deals. you don't solve it until after the deadline and that's what's going to happen. that's why the european markets are strong. >> what do you think, jim if they -- what if they leave? say there is a grexit. >> so what? tired of talking about it. 11 million people versus 700. >> that's not what the market is pricing in now? >> our market doesn't care. if you -- i looked at the 200 charts this weekend, 200 domestic companies, every time they got hit off of greece it was a buy.

it will be the same here. i mean i think that the problem is it's a great, juicy news story. but in the end, it's an opportunity to buy. i don't want to get too far offtrack. walmart reports thursday and so does nordstrom. eog is going to report wednesday, growth oil, those are what i'm looking at. i think greece sends the stocks down and then people buy them. >> nordstrom, this call this morning on nordstrom and macy's downgraded. i guess it's on valuation. but still you don't often see it? >> no and nordstrom's hit a 52-week high. it's a well-timed call in terms of nordstrom's 7 it's moved a tremendous amount. 75, 76 represents great value going into the quart. people feel macy's is played out. every time you bet against terry lund again you tend to be wrong. i want to see something bigger from macy's. the macy's doesn't have an off

the rack thing. come on big deal. give me a better reason. >> apple car? >> phil correctly pointed out how far away it is. piper puts out five years before it. if you want to sell tesla, sell because of earnings, don't sell because of apple. >> there you have it. >> have a great one. see jim and the gang in a few. >> dangerous winter weather slamming states from south to the northeast. video you have to see to believe when squawk -- look at your screen right now -- yikes! we'll show it again on the other side of the break. in my world, wall isn't a street. return on investment isn't the only return i'm looking forward to. for some every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members

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oh yes, yes, yes! we got it baby! we got it! oh again! again! that's a two-fer, baby! yes! >> that's a man who likes his job. that was the weather channel's jim cantore over the weekend in plymouth massachusetts. >> celebrating thunder snow. thunder snow. >> sometimes cramer can get excited about a stock. >> fed.

>> i'll put the they know nothing up there with cantore thunder snow. >> uh-huh. >> okay. let's also tell you about a messy morning commute in the new york area today. snow still coming down in midtown expected to end by noon. kentucky, tennessee, virginia maryland crippled by icy winter storm. 18 million people under winter storm warnings. federal offices in d.c. closed as the area braces for 8 inches of snow. airlines canceled more than 1200 flights today. airports in north carolina tennessee, look to be the hardest hit. looking for a warm-up, don't get too excited. parts of all of 50 states with a little help from elevation forecast to be below freezing tomorrow and thursday morning. >> 31 days until spring. not going to show the car video? >> we have to show the car video. can we get that in the control room? >> the photographer doesn't budge. >> one of the most -- >> that we know of.

he or she may have high tailed it out. >> oh then it stops inches before the camera. >> we've been pretty lucky thus far, i'd say, this winter. hasn't been that bad in terms of snow. not nearly like boston. >> brutal in boston. >> even down south now getting hammered. >> we haven't had it that bad. this is nothing. a few inches. >> got some school delays today. >> you they doubt it in the city. >> if you're a kid, that's all you're playing for today. >> we had a good time. >> great time. >> thanks for having us. >> you're saying hopefully joe and becky will be back. >> better be. >> hopefully if they make it through the weather. join us tomorrow. see if becky and joe are back. "squawk on the street" begins right now. ♪ good tuesday morning. hope you had a great, long

weekend. welcome to "squawk on the street." i'm carl quintanilla. jim cramer david faber. we got no deal between the greeks and eu over the weekend. cracks in the ukraine cease-fire as well this morning. oil's a story. the iea warning of some supply risk in the mideast. brent did crack 62. ten-year. the road map with greece worried about brea