>> 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 breakdown in talks

with eurozone partners. >> apple shares poise for a new all-time high. vehicle integration, watch demand, and lengthy profile on johnny i've in the new yorker"new yorker" magazine magazine. >> starwood, what it means for the company's future. a shortened trading week with the dow above 18000, s&p off the record closing high. futures lower after talks between greece and eurozone finance ministers did collapse. head of the ministers group says greece has until friday to request an extension of the bailout ten days or so jim, until the credit line does go blank. >> it does feel a lot like the united states and the brinkmanship and we knew there wasn't going to be a deal until after. what i expect will happen the talks will collapse until not the day but a few days after, because there's money found. remember that? we found a little money? i think the talks are about who's going to blink. i still feel there's going to be

a stretch-out of debt but you have to hear there were talks, on friday and thursday, we heard plenty of sense there was a deal apparently first offer the greeks wanted to take -- >> and then pulled back. >> -- taken away. we'll come in every day, and sell bristol-myers on it and midday people buy bristol-myers. >> not a formal deadline. >> right. >> they have until this friday, potentially get an extension but bailout goes until the 28th. >> thank you. >> then early march until you start worrying about running out of money. bank deposits starting to disappear and that's a concern. >> that's what would cause ireland to come to the table i'm urge people to be -- this is not like the old days. we saw some car registrations this morning, spain is very strong. we had a series of companies that reported last week. italy a standout for retail sales. we're not where we are. i think greece can be isolated. take it with a grain of salt. it not going to be resolved this

week and it's not going to bring us debt. >> three-year bond in athens 19%. car sales, up 6.2 in january. that's the 17th month of increases. >> doing better. low inflation doing better. standing by your green chutes. >> go over the quarters last week columbia sportswear classic discretionary income stocks sketch ofs numbers were extraordinary. cisco said resurgence of spending for digitizing was incredibly strong. don't be surprised by hearing continued, creative good numbers. germany's very strong. even r.i.m. >> would you argue they're getting the tail wendwind most from currencies or oil. >> i think currencies playing a big role. domestic spending is up and that's clearly oil. we'll keep our eye on that obviously. best week for tech last week since october back here in the

states. now apple is poised to open at a new all-time high. working on aan apple branded vehicle. the journal asking suppliers upper to 6 million watches in the first quarter and a lengthy profile on the new yorker apple's design chief revealed he and the retail chief are working on re-design of apple stores 16,000-word piece, fascinating look at -- tim cook trashing google glass. >> i've been waiting for erins to make her move. i find the stores, what she did was so exciting and she did a lot of customer relations management. you can see what she did if you go to salesforce.com site. in terms of apple car, piper says it's a favor-year initiative. remember we know steve jobs wanted to solve the problem of the car, there were no plans that he left but i understand it's been a dream come true if

they could do it. just in terms of the watch, i've been saying last week my cardiologist very involved with this, ben lewis, for his name. and they can't get the high blood pressure thing to work. "the journal" outlines today, had to go with pulse monitoring. >> no one can get it. the holy grail a spike in your watch and goes to cardiologist and you go to the hospital. and this is what i'm told many brilliant people from cal tech stanford, and they can't get it to work yet. but that's the -- that's what makes it so it goes beyond a watch. but what if you're liking talking to your kids and they're getting annoying, you've got a couple of teenagers and blood pressure goes up have to go to a hospital? >> there's a certain spike that does anticipate a heart attack. we all have a different relationship with your kids. >> true. >> i've had that spike. >> i bet you had. >> i bet the watch would have sent me --

>> exactly. dad's got to go to the hospital. >> if i had that watch it would be like starbucks your third place, overlook hospital would have been third place. >> you mentioned piper note today. they think car's five years out. >> yeah. >> but stand by overweight price target 160, right? that is largely going to be about the distribution in april? >> that would be the market multiple and they get that up. i still believe that the reason why you own it is it's an undervalued stock. people dismissed the watch initially, which is a mistake. obviously i wanted the blood pressure thing, heard that wasn't going to work. it gets up to market multiple people can say the reason why nasdaq hit x as opposed to the way it did in 2000 a lot of stocks getting the price-to-earnings multiple of a clorox or kellogg. >> what's interesting, the affinity for all things apple now, contrasted with -- we mentioned google glass briefly, it comes in the new yorker

profile -- contrasted with i don't want to say gloom -- they i'm using the word -- less than perhaps affinity for google. is it benefiting within flow of funds kind of thing. >> great question. my charitable trust owns. saw a glimmer of hope in the last quarter. one point they said we care about the share price, we care about doing well. you know it like well are you -- is it really that bad that you have to say that on air? because there really were a tremendous number of initiatives that just weren't making money. >> also the selling, has reached a new level. all of it obviously preplanned. and they're going to have control no matter what. but selling stock. >> selling it. look, first take -- >> no money. >> hey, costello another reprieve. first the quarter and then guys selling more aggressively. not positive. the charitable trust owns. did feel good about the conference call. when you see that level of

insider selling it's like are they going to be removing themselves? these guys are very rich guys and that's what they do. steve jobs did not do that. >> jobs did not have different classes of stock did not have hard control. >> good point. >> which they do. >> but this is -- google is and will be forever. >> i mean look google look at office -- when you look at any company that's about to merge go to the ftc and say google can come in and wreck us orbitz deal a good example. google hasn't wrecked anybody, part of the problem. we've been all waiting for do toll wreck tv. waiting for google to wreck the networks travel. it hasn't wrecked anything. if the idea is they're going to wreck something, the stock will go higher. right now they seem to be the last -- the google glass shelved in the conference call a

throwaway. come on, guys. you know get some religion. >> do you worry apple from s&p earnings stand point or stock stand point is shrouding an otherwise weak economy? all of the great metrics if you strip apple out, economy looks nothing like you think it does. >> i would if the semi conducts are didn't hit a high. i'm not concerned. i see 17 million units for autos, housing coming back. housing index hit a new high on friday. i think that's very important. we're seeing bank loan that came out from the st. louis fed on friday night that were extraordinarily strong. so there's a lot to like. when i had american electric power on last week the southeast is very very strong. waste management reported a good number than as part of residential, nonresidential construction. i see a lot to like. i not backing away. >> year-to-date nasdaq up three times what the dow's done this year. a lot of that is you know who.

>> done without biotech this time. biotech stocks running in place. >> they have. celgene gave up a lot of the gains in a short amount of time last week on patent concerns. >> it happens periodically. the shorts run with it for a while. gilead hurt by the price wars and hep c, regeneron recommended today, regeneron has fewer problems but they're in a war with amgen. that group has not led us. it's semis. by the way, software hasn't led us. microsoft a big disappoint. apple is important. >> but tesla hasn't. >> no. oh bringing that up huh? funny, i checked into twitter a few times this weekend and it's -- i almost, you know, it's like you're in i street fight sometimes. i want to come to your aid but i can't figure out how to get

involved. >> those guys cam with a gun and i came with chemical nuclear weapons the gun thing, a knife i'm have tactical nukes and things people haven't seen and haven't been tested. >> active over the weekend. >> i was active. >> they come to us cramer blocked me can you help? >> my instinct get in there as it would be, of course but glad you're handling it. >> i have a good time on twitter. >> you don't need help. >> guys that don't like it? you know what sorry? bother someone else. >> like jackie chan. ten guise coming around. >> more like chuck. but i'll go for that. >> no. jackie chan so cool. can run up walls. >> bruce lee. for 60 years old, i can do the chan if i have to. >> when we come back tale of two companies making changes at top. later, ben and jerry's co-founder ben cohen, a message

for washington and wall street. stick around to hear that. one more look at futures. s&p on track for the best month since october 2011. the dow, 84 points shy of intraday high. back in a minute. daughter: do you and mom still have money with that broker? dad: yeah, 20 something years now. thinking about what you want to do with your money? daughter: looking at options. what do you guys pay in fees? dad: i don't know exactly. daughter: if you're not happy do they have to pay you back? dad: it doesn't really work that way. daughter: you sure? vo: are you asking enough questions about the way your wealth is managed? wealth management at charles schwab. ♪ there's confidence. then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts mean your peace of mind.

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changes in the top of two companies, starwood announcing ceo fritz redesigned by mutual agreement. adam aron named interim ceo, former ceo of vail resorts and norwegian cruise line. steven newman stepping down replaced by the company's chairman. the oil services firm slashing its dividend by 80%, amid sliding crude prices. a lot of impairments, jim. they're always a mover, not always because of management though. >> one of the reasons rig is trading up people felt they wanted to preserve the capital structure and starting to lose money, obviously, big rollover. rigs are the oldest in the group. one of the reasons also that it's not going down a lot, pete miller's the chairman and pete miller has tremendous credibility, being lent to transocean. deutsche note which has more downside is true if you think oil's not done going down.

contracts are rolling over. two-year problem here. you've got to be cautious. on fritz van paaschen, fritz gave in and did the starwood like. >> being the ceo of starwood. >> and adam aron i think, not going to be a -- i think a take-charge interim ceo. great job at vail really great job. he's been working at the sixers, the sixers i think are an exciting team but don't show it on the record yet. i've always liked adam. both guys frequent guests of the shows. i think that "star wars" -- starwood -- "star wars" comes out this year -- starwood too slow to keep up with windham and marriott. >> what i heard from somebody close to the board, frustration in terms of the faith in mr. van passionen's ability to execute, they were late to do things. >> yes. >> late to the spin-off. but got to it last weekend,

benefited the stock. late to the buy-back. and most importantly, not gaining scale at the same rate as peers. >> bingo. >> when you're managing properties for a fee, not owning the underlying property they're not adding room quickly enough. why does interim ceo execute better than a former ceo? >> i think interim ceo's there to say don't fall behind you're going to fall behind in 2015. really push this company. you've done it before. aron is not the kind of guy who could take interim -- >> he may become permanent ceo. >> right. >> that will be five or six month before we know. >> i think he's going to blow the numbers out in 2015. >> really. >> put up a lot of hotels. i've got to tell you, steve holmes at windham has done a remarkable job. marriott. these companies are taking advantage of the fact not a lot of new hotels built, it's been greenfield for them to run. fritz has fought it.

fritz is intellectual in a business where people want operators. >> he did some innovative management things took his team on the road for 30 days. >> live in china a while. he's also a charming guy. not saying that charm doesn't work. i'm saying they -- why did he take so long to split the company? kept getting pushed -- gave special dividend they were terrific but not what the rest of the shareholders wanted. >> he had seven years. in this environment seven years is a long time if you're not performing at top of the game. better start looking over your shoulder. change here in early '15 gives mr. arnon to effect the numbers at the top line. this is more international company and peers are benefiting nose focused on north america, because they are getting hit internationally by the dollar as we know. it's not the greatest time to have more of your mix, if you will, international than

competitors. >> his decision to go internationally. a globetrotter. >> i mean you know -- >> it will be good. i think adam aron is a very bright man. >> one of the pioneers of hospitality hospitality, going back to pan am. >> a philadelphia -- philadelphia's a small city. if you're involved in philadelphia, you know him. and what you know about him is that he's not going to sit back and say, i'm going to spend all of my time finding a guy. he's going to put up hotels make moves, a lot out of starwood. starwood's a good place to be. stocks go up for a reason. they go up because people say, this company's going to be much more aggressive, fritz was -- i think dragged kicking and screaming into hotel life. and adam is a guy that hits your start. a good guy. >> fun to watch. cramer's "mad dash" as we count down to the opening bell. a look at premarket on tuesday after a long weekend. more "squawk on the street" from the nyse straight ahead. ameriprise asked people a simple question:

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♪ let it go let it go♪ raising numbers, disney, on "frozen." >> let's get to retail this morning. what do you want to talk. >> barclays downgrade -- they initiate nordstrom with a sell. they have macy's as sell. saying that nordstrom has to spend too much on omni channel, it looks like it's peaked out. they report thursday. so, a lot of people are saying this is a great domestic way to play things.

terry lundgren macy's may not like blue mercury but the stock's not expensive. one to watch. be careful selling nordstrom because longer term a great plan of action new york city doing a slow rollout canada do have a good omni channel. i think the idea of blowing out a nordstrom mid screen is not a good one. >> what aboutplace? >> macy's doesn't have the growth that nordstrom has. it's not a good thing to bet against terry lundgren. >> no. >> nordstrom watch out. people are going to presume they know something thursday. they have been spending billions and the stock has done quite well. they did blowout the quarter a couple of times. and i don't expect a blowout this time but would not get rid of this. too good a retail. fits my domestic consumption story. >> right. where else do we want to go here on "mad dash"? >> people continually impressed by everything that goes into an auto genuine parts reported good noom number goodyear tire

reported a good number. this is a very tough industry, a lot of people accused many different countries of dumping tires. if your business is strong because autos are strong, goodyear goes higher. i think goodyear inexpensive stock. it's not my favorite. at any given moment the chinese communist party can say let's destroy them and takes a while for the u.s. to figure out what they're doing. if you talk to monroe they'd tell you that. goodyear's good for a bounce. >> what happened with the cooper tire deal? >> people are -- >> highly leveraged deal. >> look anything involved with auto, whether genuine parts, goodyear, everything's dragged up by the fact we're making 17 million automobiles and it's a sucker play to bet against the autos 2015. >> keep an eye on autos and other stocks. opening bell on this tuesday. first trading day of the week just a few minutes from now. stay with us. "squawk on the street."

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you're watching cnbc "squawk on the street," live from the financial capital of the world. opening bell in over two minutes or so. busy week ahead. we'll cram a lot into four short trading sessions. we get inflation data, earnings from the like of marriott and walmart. a lot going on not to mention what's happening in europe. >> walmart's going to be important. story about discretionary income has been playing out. hearing that over and over from many of the apparel companies that reported last week. it's really kicking in the

spare dollars are kicking in. i think that that's one of the most important quarters. focused on eog, because that's the growth oil and there's a lot of people who are saying that oil just bottomed in the last -- since january 28th. they're not takinging that away. that's something. >> we haven't talked about oil this morning. interesting you mentioned eog. i'm looking at a quick chart. general, 120s the high. this has been lower, a lot lower, eog. >> it's come back because it has very low finding costs. the drilling costs have come down. first, you used to have to drill for 21 days now 8. second it was 29,000 now it's 22,000. you have this incredible raw cost story coming down. the first quarter's going to have big production growth when we look at these together and no one's cutting production growth. they're cutting cap x. >> big production growth does not lead to higher prices. >> right. that's why i think that the idea

of going 70 80 is not going to happen. i that 43's going to turn out to be the low and the $20, $30 call are in sync with the fact there is demand in low 40s. >> we have seen some of those. zillow you mentioned, a miss on higher expenses. they might close truly at today and average monthly unique up 41% from a year ago. >> it's very interesting because how things have changed. the ceo -- you read about it on twitter. you, he does projections on twitter. i think he either likes to be right there at the end or likes to be twitter. the man is kind of the modern way of communications. and i didn't -- i thought it was more mixed. agree with bob, a mixed quarter. but people are relieved it's done. they have 100% of the market. maybe people feel there's outliers. >> there's the s&p at the top of the screen. opening bell down here at big

board, it's vista outdoor, chairman and ceo highlighting february 10th spin-off of vista outdoor. at the nasdaq the lion musical, with all of that. twitter, you mentioned, jim, mkm out arguing for $62 target not $61 on hopes for higher monthly active users. >> they're talking about modernization. i think the stock's going to go -- i think it goes higher i really do. the trust owns it, making money on. i feel strongly what you needed was guys at top to say, we get what you want. we're going to monetize. right. >> i think they can do it. i think it's a twitter. >> tempur dissolving stakes in facebook, alibaba, apple. >> dave -- >> filings. >> reluctant to attribute most those of to anything because

david has taught us listen my views change. >> they do. >> if i react to filings and not the man himself i end up feeling that i am not -- not providing a lot of value added. >> as we caution people the 13 fs can be interesting but they are dated to a certain extent to your point, jim. yeah. >> so it's a point in time. it is worth at least knowing who owns what perhaps thinking about longer strategy they may have in terms of why getting into something or out of it. it not indicative of what's happening. when he's been vehicle tollocal to get wilson on, he can't. can he still sell? no? >> gm taken together the four hedge funds represent 2.1 period of time% of the outstanding. appaloosa one of those. big of the driver is brozen for this wilson candidacy which i

argued as a result of the incentive fee associated with it. capped a million in expenses without having to seek more money from sponsors if they were to run a proxy fight. anywhere near enough money to do that given capped a million in expenses without asking for more. as i've said jim, incentive fee structure, perhaps, perhaps a fatal blow to his condition siweekend si. we'll see. on the candidacy mer mittits there's an argument. >> someone i have been found of taught me a lot when i was at goldman sachs. you learned by osmosis. >> very -- not somebody that typically fund an activist site. >> plus, i think he makes a compelling argument there's a lot of excess capital and can do more. i don't want to see them spend a lot of money building up a finance division.

i imagine retailers might want that, car companies, guys who sell cars. i think there's a lot of capitalization. i agree in principle. i wasn't in favor of putting a guy who is not -- you can say he's aligned -- i like a nelson pelts, putting a guy on. >> we discussed it initially, talking about harry wilson this candidate potentially for gm's board. but the incentive fee structure associated with the candidacy is -- 4% of the 34 -- of the appreciation in 34 million shares, that's a lot. >> yeah it is. >> that's a lot. a lot more than any other directors are getting at gm. >> i think that's a fatal flaw. but frank rosens has to be listened. it's not his style. very good guy. >> medtronic close to an all-time high, up 2%. dollar one is a beat by 4 cents, last quarter before the acquisition of covidien.

cardiac and vascular pretty good? >> a lot of momentum. in favor of edwards life sciences, they've got device to -- that doesn't require cracking of the chest cavity. 50 60 70 80-year-old people can have that from edwards. medtronics the merger makes it let dependent on the heart. very smart. >> you do? >> yeah. >> 3,000 employees. >> medtronic. and health care stocks terrific. medtronic is one of them. >> keep our eye on that. obviously, did you talk macy's at the wall? >> we did. >> barclays underweight. >> the tough thing about macy's because the last quarter wasn't that great, and a lot of people are concerned that macy's doesn't have the growth that you want, just that they have generated a huge amount of capital, buy back a lot of stock. extraordinarily well-run. but look it's raw storage, it tjx, they've had the big move and dollar stores had big move.

people people that's where discretionary income off of gasoline is playing the biggest role versus tiffany and that kind of thing. >> national retail federation issued their forecast for 2015. they don't count gas stations cars and restaurants but they are looking for 4.1. a year ago it was 3.5. it would be best year since 20 11 when they did 5.1. >> i agree in principle. they miss badly the way to calculate black friday. i want to see other ways to calculate. the fact you said they've missed different methods tells me that you know don't go too crazy about their numbers. invest on bottoms up what the companies tell you. give you good forecasts. >> to the degree we get monthly comps anymore at all. >> ceos forthcoming about -- if you go over rick weissman's amazing call from vf he talks about disposal income how much it helped coalition of brands. remarkably fabulous call.

sketchers said the same thing on "mad money." he's very good. tim boyle, that took was up 7 on friday. remarkable call. discretionary income plus technology. they've been able to come up with a way to have down still be warm when it's wet, remarkable. >> you mentioned the idea of discretionary income is starting to become a play if you will because initially on gasoline prices fall, we didn't see the pick up we perhaps thought immediately in retail sales, particularly in apparel but starting to to? >> yeah. >> how long does it run for. >> i listened to charlie scharf he's been saying look 25% of is it spending maybe by the end of the year, 50% a lot of people saving. i think that charlie -- i'll never say charlie's wrong, he's keep or of the data -- it wouldn't surprise me to see if the span doesn't kick in earlier. watching home depot, when spring comes if it does come it's a

news story if it does come, the tale of consumer spending. i talk about the stocks american express, extraordinary. >> you had it for them on friday. >> i had a tesla moment there. that was just -- they have not been -- >> they lost -- >> they got pants. >> lost jetblue. >> jetblue is apple i pay. all of their planes are wired for wi-fi. america's best needs to say, listen we have a plan. just because tremendous amount of our growth comes from costco cards, do not give up on us. we have a plan. it is not clear that they have a plan. so i would like to see it too. it's good to have a plan. like plan b. >> plan b is good sure. >> i know plan a -- >> sometimes doesn't work. you need plan b. >> you need a plan b. and we're not getting it. they better call saul. >> maybe they will. >> yeah. >> those kind of ratings, my

gosh. nice numbers. >> hilarious, great show. >> with that dow's down 53. gold's off 15 bucks. silver having a rough morning. bob pisani's on the floor. >> happy back from the three-day weekend. mixed market today. but largely to the downside. so we had a bit of early strength in health care stocks. look at sectors. some of the tech group which had a terrific week last week was stronger at the open by and large, materials and energy industrials, financials have been open on the weak side now. we did close at new highs on all of the major indyexices in terms of size. fridays, new highs in the s&p 500, s&p mid cap index, as well as russell 2000 trading to the downside. health care technology, sort of leading here but industrial financials lagging. put up the board for the major indices. we hit new highs as i mentioned on friday, mid cap, russell 2000 s&p 500.

even the wilshire 5,000 which i don't normally bring up the broadest index of the u.s. market hit a new high friday as well. it's remarkable. across the board in terms of sizes. new highs. even europe looking better. look at stock 600, a basket of the 600 largest stocks traded on 18 european exchanges, the broadest look you can get at europe. it, too, hit the highest level. right near the highest level since 2007 not historic but 2007. a lot of trend followers. people over the weekend, follow then trend, breadth of market improving. i have no problem with trend following. what i'm worried about is earnings situation. i noted q4 numbers coming down fast. now q1 numbers coming down fast. for the first half of q1 first six week of the year s&p 500, earnings have come down 7.4%. that is a much stronger decline than you normally see in the

first happen. it's normally 2% 3%. this is the biggest first half dechine since second quarter of 2009. it's got to be based on some kind of fundamentals. when i see two quarters of deterioration, yes, it's energy there are other sectors not so strong, you get a little bit of concern. got to have a fundamental underpinning to the stock market. when you see this stuff, you get worried. this is what's passed around. transocean, driller, cutting dividend but it wasn't the big surprise. they had a dividend of $3. 15%, 16% dividend. absurd dividend. average dividend for the energy play is 3% 4%. conoco chevron, everybody defends numbers around 3% 4%. nobody defends dividend at 16%. that's a 3.1% dividend now in line with average. the problem is high dividends are colliding with high debt and they've got to figure out a way to get get down.

they've got $10 billion in debt. they have $2.40 a share times 360 million shares, that's what they're going to save that's like $880 million they're going to save a year. you can go a long way towards paying down your debt. they want to maintain they're very high investment credit rating and that's the way to do it now. you can see the stock's down here. the stock was $40. now it's $18. but obviously, they've got to figure out a way to keep borrowing money cheap, maintaining investment grade credit the main thing. the ceo also leaving there take a look at most of the energy stocks on a mixed side today. some on the upside. now they've all moved down. a mixed open here. pioneer, conoco apache schlumberger, halliburton to downside. schlumberger and halliburton opening to the upside a few moments ago. right now, the dow down 58 points. back to you. >> thanks very much bob pisani. talking about balance sheets with transocean an upon part of

the focus at investorverizon. verizon held a conference call, the first one of the companies that made their bids and won spectrum at the aws 3 auctions that we spent a lot of time telling you about, successful auctions for the government certainly, taking in a lot of money for the treasury and first responders. 10.4 billion the number spent by verizon. less than people perhaps anticipated. dish bid aggressively. and at&t walked away with a lot of it. t-mobile small part. 8:00 conference call verizon summing up a lot of what it did, trying to explain the strategy behind it. not huge headlines but worth sharing, verizon said we may look to the secondary market for more spectrum. we'll explore unlicensed spectrum. went on to say they expect to stay on track with deleveraging

plan, and that gets to what bob was talking about with transocean. you do have enormous balance sheet with a lot of debt and enormous amount of cash flow at verizon. interesting to note, deals they did in part to help pay for this spectrum, namely sale of the wire line assets frontier sale of the towers remember that was a big transaction. in fact that frontier sale jim, they paid $3.9 billion in taxes on $10 billion deal. >> wow. >> huge. >> john malone would not pay that. >> no, john malone would be very upset. but a lot of companies would look for an opportunity to lessen a tax bill of that nature. i think it goes to verizon's desire to say, we're going to make sure everything's covered though we've got to pay $3.9 billion tax bill on a $10 billion deal we're going to do it, obviously they sole wire line properties that are low multiple to ebitda and included fios properties as well to frontier. >> very disciplined. strong cfo. >> very disciplined.

and they continue to be at verizon. many people looking at the least their statement saying is there a possibility that they would look to lease stuff from dish because we continue to ask the big questions there, what are they going to do with their spectrum? hard to say that's the way they're going to go at this point, they did say they would lease spectrum for others. does not sound like they need to do anything. they've been the best putting a network together. nobody can deny that. made perhaps the best decisions when it comes to putting that network together. >> citi says dish is in play might be bought by verizon. that seems -- dish has been a win. >> i know. dish has been a win. he's put together a great spectrum position, although a loot of the spectrum depending who you talk to require new devices and enormal out amount of money for the buildout. >> you don't buy dish off of rumor about verizon. >> i don't think you do. verizon, listen that's a tough one at this point.

the question's what mr. ergen will do are valid. will he look to work something with the german for t-mobile? will there be -- would he be a seller? i don't know. we did get answers, at least from verizon. >> right. great report. because i know people are really playing consolidation. t-mobile this week a lot of chatter about it. dish has been a winner. directv, people getting that deal going close with at&t. >> strategic rational for the at&t direct deal escapes me. >> wow. >> yeah. we'll talk about it another day. >> okay sure. >> let's get to rick santelli at cme group in chicago. rick? >> good morning, afddavid weep see treasury rates hoover at highest level since early in the year. tens the second of january, look at 24-hour chart as we hoover around that 2.05 area. year-to-date chart reveals what i was talking about. haven't had the yields since end

of the year. traders paying close attention to that level. 24-hour chart of the bund up around 36 basis points. but even despite the notion that confidence, business confidence in germany better on current and even better on future expectations we see that the rates haven't gone far. year-to-date, haven't had a major test of 40 excuse me since ecb meeting. if we look at year-to-date of tens minus bunds, close to 170, we haven't seen levels since the late 80s. you won't pick up on that 20-year chart. so that's why i picked the year-to-date to show that our rates definitely continue to move higher and even despite some better data in germany, not moving high maybe wait until march. ten minus twos own yield curve, flattening. you can see on the year-to-date chart as it hoovers around 1.41. the low point on year to date the flattest the curve was since july 2012.

foreign exchange year to date of euro versus the dollar cease-fire, no cease-fire it's impervious to that. it's up now. dollar/yen big failure 1.207 bank of japan not doing more additioning stimulus. maybe that's the driving force why the trade has so much inner inertia at 120. >> jackie, good morning. >> good morning. that's right, wti trading at 5146 now, brent at 60.70. and we had a couple of headlines this morning from the iea, warning on production in the middle east, really due to the fact of lack of investment over there right now. also, exports out of iraq are dropping. but this market is so well supplied crude continues to go down. i want to high lie nat gas is down 2.75 despite the record cold temperatures we've seen across the country, not just here in the northeast. traders are only expect it to be

cold for another couple of weeks. supplies are robust. gold prices down 15 bucks. really inching towards 1200 mark despite a weaker dollar today and the fact there's uncertainty in greece and ukraine. sort of an opposite day theme here in the commodities pits. but explan nations really for all of it. >> thanks a lot. >> interesting how cold it is and nat gas not going up. speaks right to the glut. really important. >> boston hit minus 3, coldest since '04. >> can see the green monster? >> talk about spring digging out until april. >> when we come back it wasn't what twitter ceo dick costolo had been hoping for. exclusive with irene rosenfeld, hear her game plan for growing the home of nabisco, cadbury and other consumer brands. dow down almost 50 points. goal down to 1212.

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time for cramer and "stop trading." >> i'll tell you, one group that done stop, the cybersecurity software security. a small company reports, started to pick up again, fire eye, cybr cyberarc great quarter, fire eye great quarter. group's not done. it could go higher because cybersecurity is so important. these are a sweet spot for the market. >> fireeye going back to spring levels. >> doing a lot right. a very good quarter. >> "mad" tonight? >> waste management wm david

steiner continues to deliver. they're like this a play on residential/nonresidential construct. that's whoo generates most of the trash. people are talking about, huge buy-back. also ethan allen, disappointing quarter. challenged by crate and barrel our house, challenged by european import restoration hardware. let's hear how they're going to be doing. it was not a great quarter. they're in transition company. where did this hour go? >> it's gone. it's gone. just as quickly as it began. >> never get it back. >> see you tonight 6:00 p.m. well, sir. after some serious consideration i'd like to put in my 15-year notice. you're quitting!? technically retiring, sir. with a little help from my state farm agent i plan to retire in 15 years. wow! you're totally blindsiding me here.

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for a free 30-tablet trial go to cialis.com good morning, welcome back to "squawk on the street." i'm carl quintanilla with simon hobbs, david faber, live at post 9 at new york stock exchange. sara's on assignment. dow's got moderate losses in the early going, down 32. s&p down 4.

going to get home builder data in a moment. >> road map for the next 60 minutes. apple hitting another all-time high, the stock up 20% in the last month. now there's rumors about integrating apple technology into vehicles. find out what you should be doing now with the stock. plus new read on what sites and apps people are using on smartphone. and ben from ben and jerry's has big ideas about campaign finance reform. he joins us live here at post 9. to diana olick in d.c. home builder sentiment. >> carl home builder sentiment down 2 points to 55 on the national association of home builders monthly sentiment index. 50 the line between positive and negative. the positive still but builders blaming all of this rough winter weather on the february drop. we are better than february of

last year, when sentiment stood at 46. the builders saying quote, downturn attributeable to the unusually high snow levels across the nation. the different index's components sales conditions down, traffic, down 5 points to 39. sales expectations flat staying in the positive territory at 60. we had a crew out in maryland saturday, five hours, one potential buyer came through that open house. that's your buyer traffic going on in much of the nation due to the harsh weather. remember, last year, though at start of the spring season presidents' day weekend, officially the start of the spring housing season we blamed it on cold weather but it turned out that slowdown went right through to the summer. it was because of higher prices. this year we have price moderation but very low inventory. while you can blame it on the cold now, we need to see more in inventory on the into the see a

spring season. >> thank you so much diana olick. stocks modestly low, despite concerns over the greece debt stand-off. joining us this morning, tom lee, fund advisers founder. good morning. >> good morning. >> a pretty good run, as you point out in your note. you say that hedge funds are derisking and that's a bullish sign. >> it is. and it's bullish in the sense that markets are capable of rising while a large player is derisking and that's going to provide fuel later as they rerisk and add buying power to the rally. >> what evidence are you pointing to on derisking? how do we know they're doing this. >> we speak to clients constantly, so the anecdotes are definitely there. we like to track the hedge fund tracking data to the s&p. it's been declining, it's at the lowest levels in almost five or six months. >> all right. derisking, why? >> i think everyone thinks there's a chance of an

idiosyncratic event, right, whether it's greece or something happening geopolitically or something, a deflation surprise coming out somewhere. in people's minds, look there's a chance of this happening and it could cause a correction. >> you're on the side of dissing hedge funds saying because they're derisking, things will go higher because they're never right? >> that's definitely not what we're saying. >> what are you saying? >> what i'm saying is we're seeing a movement -- a rise in markets while a large contingent is taking themselves out of the market. so that obviously someone else is coming in. the ones coming in are saying hey, interest rates back to normal levels crude is acting not like in continuous decline. high yield, spectacular rally in high yield. i don't know if you know people have not spent enough time talking about that. that's bull. >> recently. >> and very recently yes. so i think because of that what we see happening over the summer, like the gasoline the

consumer credit i think there's a story about ka passcapacity tightening as well. >> it's a 5% gain since the beginning of february on the dow and the s&p, that is a phenomenal move. how do you match that against the fact that we're entering a period where presumably if the fed members are to be believed they're going to talk up that interest rate rise possibly in june? >> yes. now again, it's a reason to be nervous, nervous is good. we always have to ask ourselves, what are we going to do if markets get shaky? and fed tightening's one of the times. we showed if you look at 14 fed cycles since 1950 isolate instances where investment spending was low, which is where we are today, and the yield curves steep, which is where we are today, the markets almost lifted off vertically when the fed began to tighten. five or six instances. we're not cherry picking one

tightening cycle. i think what happens is fed tightening, if it does happen it's a reflation signal saying look the economy's strong enough to take this. because that's a big doubt in the markets it might be quite good. i'm not saying that's the case i'm saying history's shown that's what happened. >> more confidence among corporations. >> when people think prices are rising and interest rates are price rising that's what gets people to act. >> there's a significant number of people who think that although there is a number of people who think that a rate rise from the fed would be inappropriate at the moment, and they would point out the possibility of slowing growth and what's happening further down the yield curve, they would say that's a signal that the market, a lot of money, believes we are in a low inflation low growth environment for a significant amount of time. >> that's -- now, you know i have an opinion but my opinion doesn't matter because the market's can do what it wants. but i'd agree with the camp that

says, is this right time to be doing tightening in the midst of uncertainty? i think confidence is fragile. i don't think we have real strong core inflation signals. i don't think people's wage expectations are anchored higher. i'd be in the camp i don't think it's appropriate to be tightening. >> doesn't that in you view undermine there would be a strong -- >> i'll say i think only under the conditions where the fed feels there's enough confidence would they tighten. if a tightening takes place, i would say that's why it's i bull. >> you light up the phone lines no matter what tom. people say, all right, herjs derisking is bullish. a rate -- a rate cycle, bullish. anything that's not bullish to tom lee? >> again, for folks that have known me -- i've been doing this for 20 -- more than 20 years -- i've been bearish in many instances especially when i covered stocks and people didn't

like it. but i think a lot of people said, when i turned bearish, it's with conviction. i wouldn't say i was born bullish. i wasn't born with cattle horns and charging. >> this event that hedge funds may be derisking to avoid, because they want to make sure they don't lose a year so to speak, you don't think it's going to happen? >> david, i don't know. but when people ask ming i say i'm not sure what i'd do. in other words, what should i do if i thought there was a 10% chance? i don't think i'd be selling stocks. i would say i would put a little bit of insurance, extra cash in my portfolio ready to buy but i'd buy the dip because i think europe is prepared for a grexit. central banks are ready to do something to battle deflation. and geopolitical events never have long lasting damage to markets. i think it's a buying opportunity. i don't think it's setting us up for a huge tumble.

>> tom, always good to see you. provocative as always. tom lee. >> financing talks between greece and the european union going down to the line in brussels. let's link in with julia live for the latest on that potentially market moving event. >> reporter: thanks simon. the last finance ministers leaving here in brussels over in greece the greek prime minister saying there will be no compromise, and that's exactly what's needed from the greeks over the next few days. the question is can they achieve that? we need something that will appeal to both eurozone countries and the greek voters 80% about of which supporting hard line stance that the greeks are taking we've got deals discussed in the last few days but two extremes. the first one from the eurozone finance ministers, they want greens to accept six-month extension here. they're saying you have to follow conditions of the old program, that of course a huge red line for the greeks going forward. they've tried to soften the blow

of that saying we'll introduce flexibility but they've not given details. the other extreme, the greeks they're saying they want a shorter, four-month extension. they won't spend and fulfill election promises continue to pay debts but that's it. between those two extremes we have to find some kind of compromise and we have to find it by the end of the week otherwise the likelihood is we get to the end of the program and greece has to go it alone. that's going to mean increasing pressure on the greek banks right now. fact one guest i spoke to today say if we don't get a deal this week, we could see capital controls in greece coming in as early as next week. so that's the backdrop now. you look at broader assets it seems that people are saying look, qe is keeping markets calm keeping investors calm and ultimately they believe the greeks will brink first. that blink comes in the form of a compromise deal over the next few days. but you listen to the prime

minister and he's making this tough and lard.hard. we wait for the next few days. >> julia chatterly. the buzz comes for apple. another high 128.12, rumors about some kind of car are swilling not to mention the johnny i. profile talking about redesigning stores helping design the new lightsaber in "star wars." what that means for the stock in a moment. what does it mean to have an unlimited mileage warranty on a certified pre-owned mercedes-benz? what does it mean to drive as far as you want... for up to three years... and be covered? it means your odometer... is there to record... the memories. during the mercedes-benz certified pre-owned sales event now through march 2nd, you'll get complimentary pre-paid maintenance and receive your first two month's payments on us. only at your authorized mercedes-benz dealer.

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the clock is ticking for apple as the company nears april release of the anpple watch. asking suppliers pro produce 5 million units johnny ive to revamp the stores. speculations swirling about an apple car now. what does this mean for the stock? joining us discuss more brian blair, apple analyst at rosenblatt securities. first, deal with reality first, right "the journal" talking about the watch, 5 million plus units can they do it. >> they can but not in the time frame the journal's talking about. they'll make 7 million units for the first half of the year maybe another 7 million for the second half of the year. but it's going to be demand-based. apple has to tell quanta what

they think they can sell but at the end of the day they haven't sold a single unit. that number is aggressive for q1. >> do you not believe the demand will there be or suppliers cannot keep up. >> the supplier's able to make enough but we don't know what demand will be like. we know the low end model is $349. we don't know what the killer application for this is yet. i used it back in september and the version they were showing was -- it wasn't ready, it was half baked. a lot has been done since then. you ask anybody who wants the watch, ask them what they'll do with it beyond notifications, it's not clear. >> it's not able to take your blood pressure apparently. >> that's right but there are sensors on the bottom we don't know the use for yet. there's heart rate functionality, there has been talk about potential glucose readings. possible, sensors on the bottom will do some things we don't know about yet, and that's where we could applications we

don't know of. >> when will you get a better sense of what's improved on it since you last saw in september? >> it's likely they'll hold an event ahead of the lawn inch hape where they'll walk through everything developed since september and now. a lot of developers have had the kit for months and we'll see a lot of things come at it. the focus from apple is this is what we can do from the health side that's what we're going to see probably in the next month or so. >> were you excited to see hundreds of people working on an apple car and to see that smacked down to an extent by usa today, it's just about the dashboard. >> excited to know they could be working on something car-related. there's a lot of buzz around the world what tesla's doing. so it's exciting to think that apple could be applying resource to that segment then already have the carplay, which is really trying to extend ios into the vehicle. if you sit inside of a tesla and look at the screen in front of you, the massive screen to the

side, you can see, an area ripe for development and only tesla is doing something innovative. >> isn't that billions of dollars of investment which would take them away from the iphone as an investor shouldn't i get concerned if they go into a new field. >> no, you should be excited they're looking at other things. iphone will grow only for a period of time. they need to look ahead five and ten years at next growth opportunity. you should be enthusiastic. growth in iphone will slow. demand will be there, but its growth is going to slow. they need to find the next thing. >> what's going to matter most in the spring is distribution of cash. >> lightright. >> price targets based on buy-back in april. what do you think's going to happen. >> they could increase the buyback. tim cook open to use of cash and doing what investors would like to see in terms of use of cash. i'd like to think we could see

more acquisitions from them this year. >> really? >> i don't. we learned something about beats. apple is willing to be more aggressive beyond what we know. 100,000 employees, 5 products and now they have beats. we know with the car rumors they're willing to look at other others. i wouldn't be surprised to see use of cash beyond giving back to investors on the acquisition side, this year maybe the end of the year. >> changing character. we'll see if that happens. >> a lot of change in character from tim cook. we'll continue to be surprised. >> thanks a lot. >> up next on the program, oil prices turning negative after brent had been trading near a high for theier year. any sign of it settling down? where does that leave you on buying underlying stocks? more on that after the break.

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oil is still on its wild ride with crude sliding now more than 2% on the session, brebt also in the red after pairing earlier gainans earlier gains. a senior emp analyst. welcome to the program. >> thank, simon. >> i mean where are we going on oil now? we had a good recovery here on some of the concerns about what was happening in the mideast. now we're down again. >> that's right. you know volatility it seems to be the order of the day. if we're picking letters for the recovery, you can file us in the "w" shaped recovery camp. see weakness here in the near-term, least on the front month as we're epically oversupplied on inventories in the u.s. but i think that the operative term here is recovery. investors are clearly gaining confidence here in the sector that's been one of the biggest surprises of 2015 is a quicker than expected rebound here in

oil prices. but the voiltlatility will present significant opportunities in the space for cnbcs looking at emp stocks. >> if you think that we're on a -- we've got a "w" priced in recovery, where on the "w" are we? >> we're probably on the middle part of the "w." how far down does "w" go, chad? >> sure sure. i think that it's almost certain that we dip back into the 40s here. i think that again, the important thing to focus on here is that the back end of the curve, the months into the back half of 2015 are showing some very you know resilience and strength on that end of the curve. i think that's where investor focuses is on right now as global supply demand equilibrium continues to reset and we see the light at the end of the tunnel and gain conviction it's

not a train. >> warning about supply risk in the middle east brent above 62 know what's going on regarding isis in libya and the egyptian christian christians. >> that's a great point, carl. that's one of the factors that we didn't see in the downturn known/unknown, and that's the geopolitical uncertainty. we're starting to see that creep back in with libya off-line iraq disappointing on their supply side. something that's going to be in focus. if we continue to see some supply weakness with those kind of factors coming in to play then that is clearly supportive for the rebound. >> okay. so the weekend, talk about the individual stocks barron's had a big piece of what people should be buying positive on schlumberger and kinder morgan negative on the major energy stocks like exxon and chevron.

would you agree with that? >> well we've -- looking at the sector that's one of outperformers for the market year to date. up 8% i think that's surprising to some people. when you look at you know where the value's going to be, as we continue this recovery continue to normalize back to your marginal costs of production something in the $85 range, there's a significant amount of upside there to be realized. we do see a fair amount of value in the emp sector. again, volatility, the word of the day, down 50% still from our highs last summer. but up over 50% on average in the small and mid cap space that was reached a few weeks ago. lots of opportunity there as we continue the rebound. >> if you -- on the one hand you've got the emp sector doing well. on the other hand "w" that the price of oil will decline. do you think the buying opportunities will be more obvious also the price of oil

declines on the second leg of the "w" or people should get in now because the market's heading in the other direction? >> yeah that's a good point, simon. i think that the opportunity, the volatility's going to present opportunities in certain stocks. again, as investors focus on that back end of the curve, closer to the 2016 as we are clearly going to be exiting at $60 plus type of oil. we'd be playing higher beta type of names right now looking down cap for this cycle of the recovery and looking for good entry points in those names. some of our constriction buy-rated names, callan petroleum, gas r explore race names that haven't participated to date in the rebound but again are going to see significant opportunities as we continue this recovery. >> good to see you. thank you very much.

chad mabry joining us. which sites and apps do people use the most with smartphones and how much do companies like facebook and twitter depend on mobile users for ad revenue? the dow down 45, in a moment. [ female announcer ] who are we? we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours.

have you heard of the new dialing procedure for for the 415 and 628 area codes? no what is it? starting february 21, 2015 if you have a 415 or 628 number you'll need to dial... 1 plus the area code plus the phone number for all calls. okay, but what if i have a 415 number,

and i'm calling a 415 number? you'll still need to dial... 1 plus the area code plus the phone number. so when in doubt, dial it out! your cnbc news update at this hour. apple as asked its asian suppliers to make 5 million to 6

million unit of the 3 apple watch units for the first carter. the watch expected to be launched in april. would you believe a bond strategist telling strategists to get out 0 bonds. bill blankfeins blair says get out of bonds and into stocks. fires burned for hours after a train carrying more than 100 tank ors of crude oil derailed. fire crews decided to let the tankers burn out. no major injuries reported. princeton university has received the largest donation in its history. a collection of rare books and manuscripts valued at $300 million. left by 1936 graduate william sheib who died last november at age 100. that's our cnbc news update for this hour. meantime digital media creating a treasure trove for

advertisers. the time we spent on digital platforms jumped over 160%. joining us first, co-founder joins us here at post 9. good to have you back. 160% in 4 years. most the smartphone, right. >> right. mobile devices 80% of the growth. and then within that the phone was about 3/4 of that that 80%. but we're now at a point where the average person is spending three hours a day on the internet, which interestingly is 60% of the time spent on television and it matches the percentage of the ad dollars that are going to digitalj which are 60% of what goes to television. there's no evidence that it's slowing down this growth in terms of time spent. give people mobile devices they use them to get on the internet whenever they want. it's a very very dynamic situation. >> i like the chart you've built

of the most mobile properties properties that leverage mobile the most. zynga, if you spent any time on a new york city subway makes sense at number one. >> right. categories where the mobile percentage is up around 80% to 90%. you've got games, you've got weather, you've got maps, obviously social network ones leading in terms of their advertising, mobile tigzadvertising revenue generation. facebook and twitter generating in the neighborhood of 70% or 80% or more of ad revenues from mobile and growing as 60% to 70%. >> but still number facebook is 15 twitter ranked 12 behind tribune broadcasting. >> in terms of its percentage of time on mobile right. there's a lot of sites, remember. >> yes. >> that's the other reality. >> if i look at total digital population one is do do.

two is yahoo! facebook. those guys' ability to monetize that is different if you look at marissa mayer. >> i think one of the ways to think about it is if you didn't have a well-developed advertising business before then mobile is all upside. but if you had a well-developed display business before mobile is a little threatening because the cpms or prices paid are lower than on display. i think they'll get higher. but if you could be looking at a pressure point if mobile is on top of what you've already got. >> referring specifically to google? >> no, no no i wasn't referring specifically to google. i'm referring to the large properties generated most of their revenue historically from display advertising. there it's trickier than somebody who is new to the advertising game where mobile is upside. >> curious your take on the traditional broadcast companies that are watching ratings come

down significantly when measured by nielsen, cable networks and the like who argue, we're not getting credit for being watched as much as we are on mobile devices. do they have a point? >> no i think they do. i think what's happened if you look at total television time it's really not dropped but it's fragmented across different channels and different platforms. so if you're not measuring all of that, you know you're the content owner, i think you have a right to be concerned that you're not getting full credit for all of the viewing. >> can it be measured effective effectively? >> we think we're well on the road. >> but not there? >> we've got all of the digital pieces and i think by the middle of the year we'll have the television pieces rolled in there as well. >> hang on hang on. is that an acquisition did i hear you say? is that an acquisition? >> last time i was on -- no no that's -- that's all organic that i'm referring to.

>> he loves giving you a hard time. >> good to see you again. >> thank you. >> news that fritz van paaschen is quitting as ceo of starwood after seven years is raising few eyebrows. it had been an open question how long fritz could survive. he lost credibility during the earnings call last year when the ceo failed to explain why it was not returning more cash to share shaers shareholders. the stock of marriott and hilton accelerated away not only did starwood lose its cfo to be in universal, starwood's invests are became angry, pressure resulted in a series of major u-turns by the management team. the board publicly correcting guide 'staked out by the ceo. ultimately there were major reaccelerations in both sale of hotel properties and share buy-backs.

to many the message lacked conviction and clarity, fritz never recovered from the conference call during which experienced analysts pulled rank and lectured the ceo of starwood. a call that frit told me was the worst of his life. what shareholders are saying is you have a great business model, business is good, you're selling hotels your balance sheet is less live ran than before. >> the straw that may have broken the camel's back, maybe marriott and hilton are showing stronger momentum getting hotel owners to sign up to the bran. it may nobody coincidence both ceos report earnings tomorrow. fritz van paaschen probably a victim of his prior success overseas, starwood gets 56% of revenues from outside the u.s. more than, say, marriott and

earnings that are getting knocked down due to the strong dollar. starwood is more focused on the luxury segments which are no longer outperforming. david, you were saying you thought it was that signing up of hotel owners that the board was most concerned. >> speaking with somebody close to the bore they shared a frugs administration after seven years of mr. van paaschen in role that he was growing below peers, they were not adding rooms at rate of the aforementioned companies late to things like the spin-off they announced last week or the buy-back and coming back to the idea of losing faith in his ability to execute in a timely manner. >> seven years is a long tenure. >> it is. seven years where you are for a ceo. about all you can expect. coming up "shark tank's" kevin o'leary live here to talk all things apple from the record stock price open today to the idea of some apple car, ahead on cnbc.

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take a look at utility sector higher on today's session. cnbc's dom chu back at hq for more on a sector's that been down most of the year. >> the best performing sector today despite interest rates or yields are higher in the trading today. utilities standing out as a market outperformer. shares of higher yielding stocks tend to fall when interest rates rise. today the sector led by anderson international, and dt energy and sempra. it's been on a three-day losing streak. short side happening perhaps on today's trade. out to chicago, the cme group and rick santelli this morning.

good morning. >> good morning, carl. good morning mark hanson. thank you for being our guest this tuesday morning. welcome. >> today we had the national association of home builders index dip down to 55 to find a lower read go back to july of last year. last wednesday, of course we saw applications on the mortgage bankers association, down 9%. interest rates have moved up but historically low. give me a summation of the condition of housing at this point in time mark. >> rates have been so low for so long, everybody that wanted to do something, the end user the shelter buyer, the most important cohort in the nation has already done it. we're in a demandless house price recovery. sales 20% to 30% below sell side year and two-year ago forecasts which is highly unusual because prices are a symptom of demand. you have prices going one way, demand going the other way, it creates a divergence we last saw

in 2007. home builders retooled, went into certain regions that looked good, like texas. unfortunately, we have problems in the reasons that those states have been so strong, we'll see how that thing plays out. still i think that the theme this year up against big hurdles from last year a parabolic move in house prices is a lower year-over-year house price. not saying a crash, just house prices might be 5% 10% below forecasts of 5% to 10% higher than will feel kind of ugly. that's what we're hoping to figure out when that's going to happen, when it's going to first show up in print. looking for catalysts, rick. what's unique about this cycle? what's the same? i'm looking saying nothing's unique. >> move away from single family homes and consider condos different regions of the country, places like florida, have had very very lofty price action in certain condo markets.

seeing in any turnaround in those? >> new york vegas, miami, in the last few months something has broken there, precipitously, demands off of a cliff. and supply especially in miami is through the roof. in fact -- >> seeing any international players, you know chinese, russians, as we see more deterioration in their economic outlooks, is that part of the picture? >> there's a great article in "the observer" talking about how the russians are asking for deposits back, willing to lose 50% 0 so they don't lose 100% on the condo. people who thought u.s. real estate looked so cheap six months ago just saw real estate prices denominated in u.s. dollars rise 50%. russians brazilians, huge feature of the southern markets, especially miami. things are looking expensive now

and purchases aren't going at a time that supply is cranking up to go through the roof in these markets. so the last time we saw these features, remember 2007 a key feature was the condo market belly belly up. we're watching that closely now. >> we've used up all of our time. you're always interesting in painting different pockets of demand, or in this case demand, than one would have expected a year ago. >> the former ceo of ben and jerry's, ben cohen, has big ideas when it comes to election campaign finance reform. he'll join us here live at post 9 to tell us how he's trying to get money out of politics. that's when we come back.

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welcome back to "squawk on the street." watching shares of apple computer, up another 1.28% i'm just watched the market cap of the company exceed 3/4 of a trillion dollars. didn't want to just say that on air. 3/4 of a trillion dollars is the market value currently for apple, up 16.6% year-to-date.

simon, over to you. >> change the subject and play you this -- >> my relationship with silicon valley and the tech community is historically been really good. many of these folks are my friends and have been supporters and we interact all the time. >> that was president obama talking to re-code executive, kara swisher friday. the same day some of obama's backers, top executives from google, yahoo! facebook microsoft close to skip obama's white house security summit. providing the second and third ranking sources of campaign cash for obama in 2012. will the snub influence washington policy? joining us is ben and jerry's co-founder former ceo, ben cohen, who is leading a national campaign to help limit the influence of money in politics.

good morning. >> hi, how are you doing? >> i imagine an honesty about google or facebook executives and staff directly donating to the obama campaign. that's not what you're up against. >> no, that is what we're up against. >> okay. >> we're up against money and politics essentially our democracy being bought and paid for by corporations and ultrawealthy. >> what are you going to do about stamp it out. this is a stamp, a rubber stamp, and we've got 30,000 people around the country that are stamping paper currency with these messages about getting money out of politics. this is a small part of a much larger movement of millions of americans that are fed up with a system that no longer represents them because of the big money politicians are being paid as an

investment by corporations and the ultrawealthy. >> i see the koch brothers budget for 2016 is probably $900 million. >> exactly. >> against that when gop candidates are vying for their interest and their backing. what difference can this make? >> well you know, the only thing that's going to fight $900 million is huge numbers of people and that's what we've got, is millions of americans that have said that we've had it that we want money out of politics, we want our democracy back. right now we have government of by and for the corporations and the ultrawealthy. >> something you're going to have to do would be seemingly replace some justices on the supreme court with those who might look more favorably on your argument given citizens united many would argue changed the landscape you're talking about in a formidable way. >> that's exactly right. we need to change some justices on the supreme court, pass

national and state-level legislation, and amend the constitution. >> amend the constitution? that seems a virtual impossibility. >> you know 54 senators voted in favor of it last time around. so, you know, what do you need? 66. so -- >> and all the states. two-thirds of the states too. >> two-thirds right. well, there's already 17 states that have voted in favor of having an amendment to overturn citizens united. >> you've been active in progressive causes for a long time. i don't need to tell you about the money george soros has given to -- >> it's on both sides. >> do you have a problem with that side of it at all? >> i have a problem with both sides of it. the idea is it's supposed to be one person one vote, not $1 one vote. we need to get big money out of politics. we need to make it so politicians are no longer beholden to those that pay them

big money, i.e. corporations the unions, whatever. >> you know what it's like to have to market a brand in a busy world, right, a crowded space, things moving all the time. politicians are their own brand. where are they supposed to get the money to run -- to announce their campaigns? >> well, you can get the money from individuals, there's been proposals that every person in the united states would get a voucher for $100 that they could use to donate to the politician of their choice. and that would be a great way to level the playing field. >> it could be a very big campaign. it could be something that really catches people's imagination. it's a great line. i just wonder how it gets to change anything. don't you have to in some way mass votes in one way or the other, to have the power making the change. just having the slogan out there and the currency defaced isn't going to change what happens on capitol hill. >> we don't call it defaced. we call it decorated.

>> you know so don't you have to somehow migrate votes into one corner or another to get that change? for people to feel you can do that. >> the interesting thing this is a bipartisan issue. 85% of the american population republicans and democrats, want to get money out of politics. >> i can't see how it bites and changes things. >> well, like i say, already, 17 states have passed resolutions, some by referendum. >> quickly, unions apply to this rule? >> absolutely. >> still legal tender. >> and you can get your very own stamp at stampstampede.org. it's a beautiful thing. join 30,000 other americans that are making their voice heard because every time you stamp a dollar bill and put it into circulation, 875 people see it. one person stamping three bills a day for a year reaches a million people. it's very, very powerful. >> next time can we talk candy

bar pie? >> absolutely. >> mr. cohen, good to see you, co-founder of ben and jerry's. >> i do want to update people on dupont shares not doing much right now but we have our latest foray in the ongoing battle between trian and dupont. the latest a letter and presentation sent to dupont shareholdersp. if you are out there as a shareholder take time and read it when you get it. centering on the debate about who is responsible, if you will for what has been fairly good if not excellent, performance of dupont share price over time. i've said this many times as has jim cramer when we talked about this situation that it is perhaps the hardest hill that trian has to climb is trying to articulate to shareholders of dupont as to why it could do even better. and one of the arguments they have made is that, in fact, the stock price's performance is in

part responsible or a result of their being in the stock and so as you might expect dupont taking aim at what it is calling these trian myths, a myth being dupont only takes action in the face of outside pressure and therefore trian is responsible for the recent valuation creation at dupont. a myth the outperformance is a result of trian's investment in 2013 and a myth trian's time periods are the right ones to measure dupont's performance. dupont takes issue with all of those so-called myths. as i've said many times this is one of the only real ongoing battles that is out there so often it seems that the activists and the companies in question choose to settle prior to a real proxy fight and simon, that's why this perhaps makes it a more important fight for the future of activism and corporate responses to it. >> david, thank you. fresh week fresh alley see what's on deck with kayla tausche. >> good morning, simon. it's a big hour and it's all

about apple. of course starting with the wide ranging interview that johnny iv did with "the new yorker" to the watch and whether there will be an apple car. whether kevin o'leary think that will propel apple's stock higher. what will the car do to the u.s. auto landscape we'll discuss that as well and finally forthcoming drone rules could target amazon and others looking at drone deliveries. how that landscape will develop. that's coming up next on "squawk alley." automotive innovation starts... right here. with a control pad that can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a redesigned cabin of unrivaled style and comfort. the 2015 c-class. at the very touchpoint of performance and innovation. see your authorized mercedes-benz dealer for exceptional offers through

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. good morning. it is 8:00 a.m. at apple head quarters in california 8:00 a.m. on california and "squawk alley" is live. ♪ ♪ good tuesday morning.

welcome to "squawk alley." joining us kevin o'leary, chairman of o'leary funds and investor on "shark tank." kayla tausche at post nine jon on vacation. it's all about apple today. shares gone to an