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and welcome to "squawk alley" for a wednesday. joining us this morning, back from a few days vacation jon steinberg, ceo of the daily mail north america and back jon fortt, good to see you and kayla tausche, of course, has been holding down the fort with me. interesting market day, dow off and the nasdaq off a touch. still about 100 points or so from nasdaq 5,000. mixed results this morning but obviously tech is becoming more and more part of the conversation. a lot since the tech bubble in 2000. dominic chu is back at hq with more on that. >> so carl, what's interesting is the comparison between what we're in a bubble now versus what we were like in 1999 and 2000. one of the things that people are looking at right now is the ipo market and what it signals at least about whether or not we're in a frothy bubble-like situation. you guys are going to talk about snapchat later on. let's take a look at some of the ipo statistics from then back in 1999 versus today or at least last year, 2014. now we asked the renaissance capital folks that manage the

renna san etfs and they take a look at other metrics. first of all, back in 1999, we saw a total of 486 ipos. new issues come to market for stocks. that was back then. today, that number is around 2 5. that was back in fiscal 2014. yes, it's still a lot of stocks but nowhere near the level of total ipos we saw at the peak. take a look at another metric, it technology, all about technology, tech ipos back then versus today. well, back then in 1999, 345 of those ipos were tech related. today, the number of tech be ipos is only 55. maybe there isn't as much of a bubble in technology as people think there is. now, here's the other part. the average first day pop we know about the euphoria in 1999. all you need to do is buy an internet stock and it doubled in the first day of trading. back thens the average first day pop for tech ipos was almost a double, a 90s% gain on average

according to renaissance capital. today it's still eye popping but it's only, and i say relatively only 25%p . maybe not as bubble there. a lot of viewers have tweeted saying there is a bubble, if you're looking for it it may not be in technology but check out what's happening in b biotechnology. last year, renaissance capital says it was a record 71. if you are looking for signs, carl, maybe it's in biotech. back to you. >> interesting, dom. thank you so much for that. i look at some of the year to date gainers and there is biogen, starbucks, whole foods, munster, but you can't take away what netflix has done, john, apple has done and what amazon has done. >> i'm calling this the apple run. the reason is, if you look at year to date, 106 points out of the 161 points of the nasdaq's run are just apple. if you look at the top ten point contributors to this run, apple is on top with 106.

then the next nine combined don't equal apple. so so much of this is just from them. >> yeah, but the landscape itself is entirely different than it was back then. go back to 2000, google was still a private company, aol was the dominant company on the media tech landscape, facebook didn't exist yet. >> right. >> facebook is in the nasdaq 100. you have a completely different makeup. there are far bigger companies that are muscling into these gaps here. >> yeah. if you look at the price to earning multiples. in the s&p the average tech stock had a multiple of 67 times earnings, that's almost -- sounds like i'm making that up. now it's 17 times which is basically historical normal historical a averages maybe a little bit above that. what's interesting the fiscal sometimes which is this blog said that inflation adjusted nasdaq 5,000 today would have to be nasdaq 6,941. maybe dom needs to adjust the nasdaq 5,000 ticker. >> i think are we there on the dow, inflation adjusted? we might be close. >> close. >> yeah, as we hit some of the

targets on the dow. >> but -- >> you're saying you don't think stocks are expensive in tech some. >> i don't think they're cheap. they're at the upper end of historic numbers. look at the price to eeshgs multiple. look at twitter's earnings and revenue growth. google only 20%. you have to adjust a bit and do peg ratios to get an accurate view. >> investors seem to have some sort of fear of heights. they're not completely irrationally exuberant about getting to the 5,000 level. we saw $6.8 billion being pulled out of the largest etf that tracks the nasdaq 100. traders taking money off the table and don't want to ride it to 5,000. >> there are different things going on here, though, and i want to quickly run down a few of the names on the top ten point contributors list that i broke out. amazon is at number two and then biogen, gilead, netflix, cisco, starbucks, texas instruments and then google. on this list.

contributing to this point gain year to date. the numbers of -- as far as points contributed get small once you get below the top ten. three points added to the nasdaq year to date versus that 106 from apple. so i mean when you look at what happens from here, you to think it's not the tail necessarily wagging the dog, though the biotechs are going to be important, but the direction of an apple and an amazon can mean a lot to where we go from here. >> true on a price basis and earnings basis for sure when you look at the s&p taking out apple changes things dramatically. whether it's the market expensive or some of the companies that aren't public yet, once again, evan spiegel looks smart for turning down the supposedly $3 billion deal from mark zuckerberg. snapchat wants to raise $500 million in new financing valuing the company at about $19 billion. that would put it nearly on par with whatsapp which facebook bought for $22 billion last year. somebody i forget who this morning said, zuckerberg is

smart and he tries to get the bargain early on. doesn't always succeed. >> worked with instagram, maybe necessarily didn't work with whatsapp. that's what set the bubble m&a conversation in motion. but i got off the phone with a source familiar with this deal right before we went on the air, always fun chasing the west coast stories first thing in the morning, but apparently this is a valuation that investors have suggested after snapchat discover came out. evan spiegel's inbox overflowing with offers from strategics from mutual funds who are trying to get the company to raise more money. $500 million in a context of things, is an astronomical sum of money, not necessarily for snapchat but when you think about the fact that the average ipo in the last ten years raised $335 million, what's the point of going public if you're getting flooded with offers for $500 million and you could probably not even raise, you know, that much if you were to go public right now. it's quite a black and white

situation. >> let me walk everybody through discover. daily mail we're one of 11 partners on snapchat discover which is actually their media platform that they rolled out. we've actually created a team that puts content on snapchat. here's daily mail. go in there, a story today on zach ps posen from fashion week, a story on nsa spying on your pc. iggy azalea, beach shots there as well. >> hello. >> flip through and scroll into the story. we sell advertising on this. sold advertising on -- to mondelez, t mobile, oxygen network and more. like having a cable channel for us. this is our number two area of focus right now after our own website. >> how is engagement? there is numbers floating around out there that snapchat might be around $200 million monthly active users. a question of whether these moves like you're talking about are increasing that daily percentage, how many people are coming there daily, but when you compare that to whatsapp, for example, which last year

apparently had a similar valuation, the numbers aren't quite as big. so is engagement making up for that? what kind of traffic are you seeing? >> i'm a partner so i can't speak about numbers we are putting effort into this, three to four people each day putting together one to two editions, 14 stories a day. this is one of my major sales focuses. not only do i think the engagement is there and amazing traffic on the platform we're not just kind of thrown into it like we are on facebook and twitter where there's just so much, so many people competing for attention. here we can cultivate like a cable channel, sell advertising into it and benefit from the upside in it. >> the valuation on this, we believe this $19 billion, new york, times market cap 2.3. >> there was an interesting article over the weekend you could get to the "new york times" being worth 8 or $9 billion if you carved off all the print assets digital revenue and gave it the multiple a lot of pure play digital media companies have "the new york times" is undervalued. it's always hard to figure out what's a good valuation for these things. how much of a competitive threat

is it to somebody's wealth. look at instagram, such a threat they had to buy it for a billion. whatsapp a threat, give it 20% of the market cap. >> the buy side does not take these be investments lightly. you have to think they've been doing channel checks, talking to advertisers, figuring out how big a deal discover could be before reaching out to the company with the term sheet. you have to think that fact that the money is there, leads you to believe that is -- this is where the growth is going to be for snapchat. >> look, i think as someone who's been in the media space and worked with facebook, twitter, google, to me it's the most personally excited. the media players are being put on a little even footing. i think twitter and facebook will have to adjust their models. they will have to figure out a way to make it worth while for us to put our content out there and reap ad revenue. >> finally, re/code's code media conference is under way with the key ♪ speech from twitter's evan williams coming this hour. some of the most interesting talk is centered on virtual

reality and our julia boorstin is live at the conference in beautiful dana point. hey, julia. >> hey, carl. that's right. facebook's head of product chris cox explained last night why facebook's oculus acquisition will be meaningful for the company and how we consume media. he revealed he's working on apps to allow anyone to create immersive vr experiences to share in the news feed which is the next generation beyond just sharing video. >> when you're using facebook you're just sending around bits of experience, sending a photo, a video, sending a piece of text. i think the version of the world where you're sending, you know, a fuller immersive picture of what you're doing. >> you think people will be creating that experience? >> total sfli you will be able to make virtual reality you can share with your friends. >> totally. you'll do it, beyond say will do it. >> we're coming up on a year sans facebosince facebook acqui oculus. the first time we've heard how the technology will change how

people use facebook, cox calling it a game changer. >> not a lot of people are going to get to go to mongolia in their life. i've never been. you're in, there's like a smoky little fire nearby, a woman making food, look around, it's beautiful. and you immediately understand it's one of these things the first time you're in it, you realize you are looking at the future. >> more virtual reality is on tap here. this gaunt virtual reality headset, slide in a smartphone is the alternative to facebook's oculus, built on the google platform. it will be demoed on stage shortly. and as you mentioned carl, twitter's co-founder and largest shareholder, evan williams takes the stage coming up and back with the headlines. >> can't wait for that. it's like the self-driving car, jon, right? so much promise, but it's clearly not where -- it's not mature yet. >> i think it's closer, though. because we've got the equivalent of self-driving bikes in this space. you have google card board, you

have samsung's gear vr. oculus is able to show this to people in a way that is just more about the practicality of people taking the time to create the content than it is can we even drive this on a road outside of mountainview where we are with the cars. >> apple we found out had a patent granteded for a set of clear glasses you slide an iphone into. it could appear to people that's a contra dixion to the new yorker article where jony ive and tim cook are commenting we knew it wasn't the place to go with google glass. this is in home entertainment virtual reality things of that sort. does seem like they're competing for it now. i was totally wrong on goog glass. i thought everybody would like it. i'm not sure i can comment on vr. >> you're a self-professed gadget head. >> you seem to be a fan boy of gadgets. >> i'm not sure i want this. this is the first thing i think i don't want. >> i would say this about the apple patent. keep in mind this was -- the

application in 2008. the name is quinn hallworth in charge of apple's design patent specifically and this isn't the sort of area where apple has pushed much lately. this content creation area. steve jobs used to be into it, so much he put out the imac dv for video creation before itunes and music. he was so eager for this sort of thing, thinking people wanted to be in these immersive experiences he would get ahead of himself. we haven't seen apple do that as much. i would be surprised if they dive into this quickly. >> we will be talking about it for a long time. john, good to see you. >> good to see you guys. >> quickly make sure you tune in tomorrow we will be talking to walmart's president and ceo doug mcmillon in a cnbc exclusive after they have earnings tomorrow morning. you'll see that beginning right here at 11:00 a.m. eastern time. >> a big name to have carl. we'll be looking forward to it. a check on the markets at this hour as well. the dow, nasdaq and s&p all have modest losses for most of the morning. dow hovering above 18,000. the nasdaq we should note, if

it's down today, would be nochg its first losing day in six sessions. this coming after touching record highs in yesterday's close. we had negative data. the fed minutes this afternoon and all eyes, carl, will still be on greece as we near the deadline on february 28th. >> zillow finalizing its merger with trul ya after the bell yesterday. the ceo will break it down in a first on cnbc interview in a moment. attention all businesses if you don't have a good shopping app, you in big trouble. more on that a little later on. shake shack went public a couple weeks ago. danny meyer has a new gig, with us to explain later this hour. "squawk alley" will be right back. can it make a dentist appointment when my teeth are ready? ♪

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with the federal trade commission green lighting the merger the two most popular u.s. real estate search sites are now officially under the same roof. zillow announcing the completion of its trulia deal after the bell last night and zillow shares are surging more than 10%. largely on the back of new news of cost cutting. joining us now first on cnbc zillow's ceo and co-founder spencer rascoff. also out with a new book "the new rules of real estate." good to see you. >> thank you for having me. >> so it seems the headline in

the seven or so months since the deal got announced was the competition and some of the issues that the ftc has raised. you've long took the line that the advertising real estate market is fragmented. were you surprised at how strictly washington took this deal? >> well, it was a long and arduous and stressful process. it took seven months to gain government approval. i was always confident eve eventually the deal would get approved but it took a while. you know, there's tens of billions of dollars in real estate related advertising and zillow and trulia, even though we're the largest sites on the internet we have less than 5% of that. the ftc reached that conclusion and approved the deal. >> your stock has taken a hit throughout that process, spencer. there was some caution about whether the deal would happen, some costs associated with the deal. it started as a $3.5 billion but now $2.5 billion. have you talked to your shareholders about that and what's the outlook for more stable earnings and a recovery in the stock price?

>> well, this was a stock for stock deal. trulia shareholders received about a third of the company and zillow shareholders received about two-thirds of the company. the total value of the deal fluctuated based on how much zillow is worth and at the time of closing the final consideration $2.5 billion. the synergy potential is significant. zillow will operate the family of brands and the zillow and trulia brand and hot pads and street easy brand each will have different points of sale for consumers. so they'll attract different and largers audiences. behind the scenes we'll integrate sales, listing information and data aggregation and cost savings as a result of that. that's the strategy behind the creation of zillow group. i think it's a sound strategy and we're well positioned as the $13 billion of real estate advertising that migrates on to the internet. >> you say there's $13 billion i think spent every year in real estate advertising. you've got a billion of that but clearly you've got a very

exciting tech infused billion of that. now that you are this bigger company, what are you able to do to drive that growth to drive engagement? do you know cuss more on video? do you push harder on mobile? are you tinkering with virtual reality? >> all of the above. i mean mobile is a huge focus of zillow and trulia's, around two-thirds of the usage now is already on a mobile device, smartphone or tablet. so much more to be done on the consumer experience. for example, street easy our new york city brand, is experimenting with virtual floor plans where you can have a 3d view into an apartment in new york, something that hasn't been done on-line at scale yet. so there's so much innovation that still exists in front of us. it's very early days in on-line real estate and i'm excited about having the plul ty brand strategy. something that nbc universal your parent company has done with nbc, cnbc, msnbc, and bravo. they're sort of shared services behind the scenes but different consumer brands which attract a

slightly different audiences and give nbc universal greater scale to advertisers because of the different brands. >> meantime fundamentals, spencer, housing starts were disappointment today, sentiment no good yesterday. is that just the winter talking or housing changing going into the spring selling season? >> housing is changing. real estate is cooling. to give you perspective, home values came down about 30% from the peak and bounced back about 20%. we're about 10% off the peak nationwide and home values are growing around 5% or so less per year. so home values are slowing. but that's okay. that actually makes for a more sustainable recovery. we were concerned a year ago when home values were spiking off the bottom a significant bounce. a lot of the country is doing really well in terms of home values. new york city, san francisco, much of california and florida home values are appreciating double digits. it's a local story at this point where certain markets are doing well, others growing a little more slowly. the macro trend of real estate

agent advertising is on mobile and web. the consumer is researching a home on a smartphone and real estate agents need their listings and their own face on these mobile apps where consumers are searching. >> spencer, always good to see you. congrats on a long fight to get this deal done and closing the deal today. >> thank you. >> spencer rascoff of zillow. jim cramer this morning said he's afraid spencer wants his job. >> spencer is a frequent guest. we're not complaining about that at all. >> always glad to have him. >> as his opinions on stocks sometimes too. >> coming up shake shack founder danny meyer going on-line. where he's headed next. yoyour friends have your back.

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things getting a little more interesting if europe. let's bring in simon hobbs. >> let's deal with the market action. the bits in red are not part of the eurozone.

europro peen equi-- our peen equities doing well if you have a look at where we are, the stocks have outperformed where we are here by about 9%. see that shot. thank you. by about 9%. obviously because qe is on the way you have to subtract a 6% currency move on that. clear outperformance today the banks doing well ahead of qe from the european central bank. talk about greece now. some people would says those are rallying because they believe a greek deal is about to be done. the greeks have postponed their offer to the rest of the euro group about extending their bailout. i don't know why. it's for one of two reasons. because they realize what they've got on the table and leaked to the financial times will not fly and will be rejected and trying to rework it or because they're trying to ram it up against the deadlines that come with the bailout at the end of next week and trying to get a finance minister's meeting to get something through potentially on friday. remember importantly on monday, the rest of the euro group when they had this proposal much the

same on the table said no. and shut the meeting down early. then yesterday, the german finance minister was on television as one analyst put it breathing out hell fire. he says it's not about extending credit program, but whether this greek bailout program will be fulfilled, yes or no. that is the environment in which the greeks are operating, the germans have been outvoted on qe from the ecb will they be outvoted on this question. jpmorgan says look the greeks have to understand this disagreement is substantive and not about getting money for nothing. quote, if the greek government applies for an extension plus broad principles we do not expect this to be accepted by the euro group. to get an agreement in the next few days greece needs to ask for an extension and to propose specific measures that it will take once the six-month extension is in place. in the meantime remember that the european central bank

basically has the greek banks on a tight leash now. they according to local press reports have about 5 million euros flowing out because people fear they could return to the track pa. they're meeting on further assistance liquidity program. last time they did it for two weeks. this time they're going to do it for one week. why? because in two weeks time the greek bailout will have finished and potentially will be no more money from the european central bank. i believe it's a two-thirds vote whether the greeks get their cash today. >> see what happens later in the week. thank you. when we come back the runway like you've never seen it before. back stage to talk to one of the top names in fashion right in the middle of her show. when "squawk alley" continues. but what if you could see more of what you wanted to know?

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good morning. here's your cnbc news update at this hour. the fed's open market committee minutes will be released this afternoon and investors will scour them for hints about a possible increase if interest rates which could come as early as june. cnbc will have it for you as soon as it is released and that is at 2:00 p.m. eastern time. new york state attorney general eric snyderman is suing ups accusiing it of illegal shippin

700,000 cartons of untaxed cigarettes in new york state seeking damages and penalties. campbell's is restructuring, unveiled a cost-cutting plan it says could result in annual savings of at least $200 million over three years. this as it battles luke warm sales. you don't want to be luke warm if you're a soup seller. a new book, more than 20 years after his death, random house will publish a recently discovered manuscript from dr. seuss called "what pet should i get?" available at the end of july. for more go to cnbc.com. coming up on "power lunch" an exclusive with clorox's ceo benno dorer promising whiter whites in the 2:00 p.m. hour on cnbc. that's our news update for this hour. let's get back to "squawk alley." >> tanks tyler mathisen.

as fashion week migrates beyond the tent, the runway shows are spreading throughout new york city. courtney reagan live back stage at a show talking with the designer herself. over to you. >> that's right, kayla. the first models for the show are walking down the runway right now. i am joined by the designer, thank you so much for doing this. it's probably a tv and fashion first to do it live as your models walk the runway. why leave the tents? >> it was time. it's like fashion is looking for a new way to reinvent itself. shows felt like they needed newness so it's fun to have your own environment. >> and it's smaller and more intimate and i like it. >> your collection is sold at macy's nord strom bloomingdale's sacks neiman marcus. what does she want right now? >> she wants something that's going to make her heart stop. so she needs like a bold, exciting print like beautiful sleeves, gorgeous silhouettes. i mean, it's fun. it's a fun season to get dressed

because there's like military details, mixed with soft, mem nin blouses and takes a little shift dress and cool coat and you look amazing for fall 2015. >> part of your collection is the print you're wearing. was this made on a computer? >> we designed it by hand and computerized it. >> technology is -- >> and then -- >> like the look of the embroidery that's blown up and off centered. >> you entered into a venture with blue star alliance. how will that help you grow your brand? >> i'll be diversified in more places. it's exciting. >> and you're expanding product lines as well, eyewear, other accessories? >> yes. i'm going to look at my show now if that's okay. >> great. thank you so much. it's been wonderful. >> okay. so i lost track. i want to see what's going on. >> this is a live fashion show as you can see. >> thanks to courtney for that rare look behind the scenes of fashion week. a new survey suggests retailers want to capture millennial

shoppers they better get an app for that. mary thompson is back at hq with more. >> to anyone watching millennial work their smartphone should come as no surprise their ease with the devices is driving growth in shopping. a paypal survey of more than 17,000 shoppers in 22 countries forecast from 2013 through 2016, commerce will grow at a rate of 42% compare to a 13% growth rate forecast for traditional e-commerce done via laptops and desk tops. eye catching numbers though important to remember government figures show on-line shopping including mobile accounted for less than 7% of total retail sales in the fourth quarter. and according to the survey purchases by phones and tablets only account for 15% of all of that on-line spending. so, retailers should take notice as the survey reveals a key demographic 18 to 34-year-olds account for 59% of global purchases. the countries where m commerce accounts is the united arab

emirates 24%, china 21% and turkey 19%. here in the u.s. smartphone shopping was around the average rate among the countries at about 10% for all of on-line sales. u.s. shoppers using phones to buy mostly everyday products like groceries. so what is key to increasing m commerce in the future? if it will continue to be strong hardware and software will need to change. users say a phone small screen prevents many from making purchases as do concerns about secure payments and retailers have to make these purchases easy and creating apps for their stores which consumers say they prefer using over a browser. back to you. >> mary, any information in the survey about which companies are best capitalizing on this trend as m commerce takes off? >> as you can imagine in the u.s. the top names that came up are the likes of amazon and ebay. which, of course, was the former parent of paypal. back to you. >> all right. mary thompson, back at headquarters, thanks so much. when we come back, amazon pilot season is over so which of the

13 potential new shows actually made the cut? the answer in a moment. but first, rick santelli, what are you watching today? >> well, i think we're going to be watching 10-year, 30-yaer, 5-year note yields as they toy with settlement yields of last year. what does it mean? how did we get up here? and why were we so low on january 30th? because all those reasons are important. if the fed actually embarks on tightening in 2015. we're going to talk about that after 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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coming up with so many areas of the market at historic highs what, if anything can stop this rally if we'll do bait what to buy and bail on. as the nasdaq approaches 5,000 for the first time in 15 years, why this time really is different. and plenty of shocking hedge fund moves. the names the heavy weights are getting in and out of and whether you should follow suit. john, we're going to see you in about 20. >> we'll be watching. in case you missed us amazon announcing that five shows from its latest pilot season will get full seasons, most notable among those is probably the man in the high castle a show about an alternate reality where the nazis won world war ii. others include mad dogs, show the new yorker presents and two children's programs and notable shows didn't make the cut including cocked staring jason

lee and a drama written by one of the top producers from "lost." the ending of the civil war wouldn't be a question mark. that's probably why it didn't make it. >> the fourth pilot season for amazon resulting in these choices now on a hunt for another golden globe. "mad dog" a lot of critical acclaim. >> welcome to the entertainment world. this what is it's about. trying to pitch concepts and see what, was and doesn't. see how it goes for them. let's get to the cme group and check in with rick santelli. get the santelli exchange. hey, rick. >> good morning, carl. on a day where we're going to get the minutes from the last 27, 28 january fed meeting i think appropriate topic would be what is the big reason behind the jump from january 30th where you had a 1164 -- 164, 10, 262, 30-year, what changed. couple things. the reason why this is important because there is the new threat in the treasury market i see it on all the blogs the big move in

interest rates that started really at the end january to today, 50s basis points on the long end is due to what the fed may or may not do in 2015. of course i'm referring to normalization. if you think it's a long-time coming, just read the great op-ed in the journal today. but in order to get at the reasons, i think all we need to do is look at charts to see what's motivating interest rates, higher since the end of january. the chart you're looking at is a chart of bund yields for all of last year up until present day. what's fascinating is, is not only that they moved down so normally without any real volatility, kind of straight down, but you didn't get a sub40 basis points close and tighten the chart up now to 2015, until the day after the fed or excuse me ecb met january 22nd when we had sub40 closes it's basically been knocking at the door 40 basis points as we speak. now, let's fast forward to treasury rates. the chart you see there, is

treasuries from the end of 2013 to today. i want to show you interesting details. here's the same version of that chart. as you notice, up until october of last year, the low yield was around 2.33. only that october 15th day that really brought yields down, the low was 2.14 on that day. and you can see we didn't have a lot of dramatic action for the end of the year. basically a lot like what happened in bund yields. but in january, look what happened. 2.17 down to 1.64 which i referenced on the 30th. about the ecb. this was about quantitative easing. and it doesn't start until march. maybe one could argue that fed is having a small impact but the notion that we're basically back where we started take that out, i think it's significant. because i don't think yields can give you hints about the fed. because i'm not sure if yields know where they're supposed to

be. which house do they live? what's their address? because the gps of interest rates has a lot of murkiness to the waters, not the least of which is how many are own by the fed or what the quantitative easing is going to look like outside of the u.s. whether japan or europe coming on board and what distortions that makes. what i can tell you for sure is simple, the closes of 5s at 165, 10s, 217 is significant. we knock down the door in the wee hours of the morning. traded 165, traded 216, we traded 274.5. should we close, close before these yields, it's going to be significant because then everybody is off sides for the entire year on treasuries. back to you. >> rick, thank you very much. rick santelli. let's get to dominic chu. we got housing data out today but one name very exposed to housing. >> very much so. this is sherwin williams, the paint company moving higher on news the company will increase

its quarterly dividend by 22% to 67 cents a share. the quarterly dividend of 67 cents will make that dividend yield under 1% but still, payable on march 13th. over the past year the stock is off a whopping 50%, jon. it's up 9% already year to date. so shw shares gaining momentum in 2015. back to you. >> nice, thanks, dom. up next, only been a few weeks since shake shack went public, danny meyer has another job. he's with us to explain in just a moment. "squawk alley" will be right back.

fresh off the shake shack ipo restauranteur danny meyer setting his sights on-line joining the board of digital ordering app olo. joining us is ub yon hospitality group danny meyer and founder and ceo noah glass join us here at post nine. good morning to you. >> good morning. >> did you meet danny through industry circles and how did you get him to go on the board? >> i did. i was delighted to get danny on board. i've been a fan of danny and his book a number of years and got to meet him and spend some time together and a great person to add to our board with restaurant expertise and, of course, the open table experience which is useful, and some of the great set of values through his concepts of enlightened hospitality aligns with our values. >> walk us through what olo is. what sets it apart.

>> it really all started about a block from here living on wall street ability ten years ago and wanted to get a cup of coffee and having a hard time standing in a long line and thought, wouldn't it be better if i could order and pay from a smartphone and skip the line at the coffee shop. and what came of that was olo which is actually a digital ordering platform for any restaurant group big or small to launch its app or website and lets customers order and pay and skip the line and get food faster. we work with 150 restaurant brands, about 10,000 restaurants overall and 9 million consumers who have downloaded one of the apps and have an account on the platform. >> what do you see in olo as a concept? obviously noah discussed the scale of the company but do you see it competing against the likes of grub hub, caviar some of the upstarts that have tried to find a niche in the space is it. >> the first part of your question first, i did have an amazing experience going all the way back to 1999 with open table, which put power in the hands of guests to make their

reservations in a way they had never made them before, but what it did was to give all kinds of insights to restauranteurs to offer more hospitality to guests. i think what i've seen from 1999 all the way to 2015, is that as many guests are continuing to go to fine dining restaurants and making reservations which is awesome, there's a huge number of restaurants now in the world that didn't used to exist where you eat your food at the restaurant or you take your food out of the restaurant, not for delivery, but you may want to order that food in a way that makes your life easier but gives the restaurant kind of insights they can customize the experience and i'm just really excited about what noah and his team are doing at olo. >> noah, is this going to work for your higher end restaurants? i sense this -- air any not sure about how they feel about people pulling out their mobile devices once in the restaurant. we've had a revolution in

figuring out where to eat through your device, getting there, making the re servation but don't they want you looking at their paper menu versus your phone? >> i can clarify. we're focused on not the fine dining but limited service restaurants, think groups like five guys burger and fries, noodles and company, chipotle, these are some of the clients that work with olo. more about the takeout transaction. if you look at industry data, 75% of transactions in the industry are picked up at the restaurant and then consumed off premise. >> 75. >> 75%. that's biased by a huge drive through segment of the restaurant industry, but three of every four times somebody thinks i want to eat something, go to a restaurant to get it, thinking about eating it somewhere else not at the restaurant. >> where do you get the most bang for your buck in marketing the concept, 5% of people are -- 75% are taking their food out, park benches, picnic tables? >> because we're a [ inaudible ] the restaurant is doing the marketing and doing that inside of the store or outside in the

parking lot where they say next time skip the line, that's our trademark tag line, and enables the customer to order and pay ahead and skip the line when they get there. if you watch somebody do that it's like watching somebody use ez pass on the highway, never go through another -- >> why are they in the cash lane. makes no sense. >> opposite of that feeling when standing in line but you get that feeling of v.i.p. service if you get to order through the app and skip the line. >> hope you won't mind one shake shack question. had you here for the ipo. a very good day for the stock. >> still have butterflies. >> it settled back, back to 40 bucks. is that part of the process here? what do you make of the valuation and how it's changed in the course of a few weeks? >> absolutely nothing. as a matter of fact, until you told me that i had not looked at the stock price. >> was that fact. >> we're still doing the same thing. randy, the ceo, is running shake shack, one burger at a time and we're excited. we're really excited but that's not what guides our principles.

it's still about hospitality and great food. >> anybody who knows you, knows that's -- you're not just talking there. >> does it guide your perspective when you think about companies like olo, does the trajectory change for you? do you want to keep everything close to the vest or thinking maybe an ipo for other investments down the line is a bert option too? >> we've never had that conversation either. i'm just fascinated by companies that have found ways to add more hospitality for guests, more insights and profits for businesses, and probably more than anything, i love hanging out with really smart people like noah who can teach me things and -- especially about tech that i don't know myself. >> like hanging out with smart people like you too. >> might be tough. >> thank you for coming by. >> thanks for having us. >> danny, good to see you as always. >> thank you, carl. >> when we come back we talked about virtual reality at the top of the hour. wait until you see the latest offering from sony. we will show it to you in a minute.

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welcome back. a news alert, twitter's evan williams giving the key ♪ address at the code media conference and julia boorstin is live with details. >> that's right. evan williams may be twitter's

largest shareholder, he's also one of its co-founders but on stage right now not talking about twitter but medium being interviewed by re/code's kara swisher and started off their conversation talking about evan williams' latest venture which is medium which he is calling a platform and publisher and talks about how he's using it to try to give people more opportunities to publish. now in great contrast to twitter which is limited to 140 characters, medium allows peoples to post longer form content. he says that it's very key, that, of course, while they all pulled down anything terrible off the site they want to allow peoples to post things that are controversial and proponents of free speech and he spends all of his time trying to make sure that it's really different than what blogger and twitter are, both companies that he cofounded and tried to give people a different way to have a voice in this media landscape.

now he did admit recently that they do have some be revenue but it's not a meaningful amount just yet. he hopes to build something very large that will take money and make money and to build what he called a substantial content platform on the internet that will make money and it could be with ways other than advertising. raising the question about subscription revenue. guys, back over to you. >> thank you for that. meanwhile sony is unveiling its smart eyeglasses with a video. the gadget will run about 840 bucks, expected to be released to consumers next year. we just got over google glass and now this. >> i think this is hipster cool looking compared to google glass but i still -- >> no. >> not sure i need that on my face. >> you think a chunkier design like that would succeed with google glass failed. >> at least it's symmetrical. >> at least there's that. >> so many big players moving into the space it's taking on an

air of inevitability this is going to be a source for growth? not a believer? >> the face is difficult. some of us have enough going on here challenging already, we don't need tech op it. >> some of us have glasses as it is. >> as cook said is in the new yorker piece. headquarters, wapner and the half ♪ i did it again >> all right. welcome to the halftime show. meet our starting lineup, josh brown the ceo of ritholtz wealth management, jon and pete najarian co-founders of ohm, michael block is chief strategist at ryan o trading partners and mike santoli at yahoo! finance. our game plan looks like this. nasdaq 5k. with the index closing in on that milestone, for the first time in 15 years, why this time really is different? whale watching the biggest of them all making stunning moves. kate kelly on why buffet is doubling down on ibm and what