prize signed by the entire "squak on the street" team unless kayla and kelly don't get their hands on it first. >> that's a pretty good loot. he will be lucky. >> i almost took it home the other day. glad it's still here. >> accidentally i'm sure. all right. simon, thank you so much. it is 8:00 a.m. in apple headquarters in cupertino, california, 11:00 op wall street and "squawk alley" is live. ♪ welcome to "squawk alley" on this friday morning. joining us today is kara swisher, co-executive editor at re/code. good to see you. >> good to see you.

>> carl quintanilla and jon fortt are out but joining me for the hour the one and only kelly evans. >> i love it. >> great to have you. always so fun when the two of us get to host together. >> yeah. >> apple set to replace at&t in the dow jones industrials after the close on march 18th. apple has a massive market cap but share price is still lower than other dow components like ibm, 3m boeing and goldman sachs. the dow is a price weighted index. shares of apple rallying higher on the news this morning, up by about 1.7%. kara, the -- apple has been leading the nasdaq higher for years at this point. what does says to you that now the blue chip average will be including apple? >> i think that's important. one of the most important companies in our world in the global environment and so it belongs there and it's -- you know, it's probably the leading company in our country in terms of profits and everything else. it deserves to be there. >> people will look at this like

they do with the skyscraper index and say by the time we finally added it to the down all the gains are in, it's going to be the peak of apple's performance and the market generally. >> they say that a lot about apple. i bet they wish they had bought apple earlier. it has ups and downs. people are excited about it in anticipation of the apple watch and a lot of stories saying they're going to make billions and billence from it. so it's natural the stock would be at a high and once they don't have another product it will go down and apple's obviously dependent on its products very much. the stock. i think, you know, over time as long as it performance, it's -- it should be there. it should be there. >> the move that enabled apple to be included was the seven for one stock split they did last year at the time we were talking about how it would make apple shares a little bit more palatable for the everyday investor to buy in, but did you ever get the sense that moving into the dow, was an important hallmark for apple, that they ever had it in their sights? >> apple itself? >> yes.

>> you know, it definitely boosted stock but i never heard them talking about it once. it's not something that the people at apple talk about a lot. but i think it is an important iconic company and it's a home grown company and, you know, just from silicon valley and it's -- it belongs there. i don't know what else to say about that. >> it's interesting they are booting at&t, not intentionally but that's the move that's going to happen. this is the launch partner for the i phone. i remember the stories about how much steve jobs had to do to force at&t work with that company, bring them along and make this device happen. it is an ironic moment. >> it is. time when he did an interview with us when he didn't want it to do a phone which he denied the year before he did a phone, he said i don't like jumping through orifices and directly referring to all the carriers and so he managed to jump through the orifice and the rest is history. >> let's stick with apple ahead of its event on monday. jony ive revealing new details on an apple watch with an interview with the "financial

times." quote, when the issue of the frequent need to recharge the iphone is raised ive answers because it's so light and thin we use it so much and defleet the battery. saying, quote, with a bigger battery it would be heavier, more cumbersome and less compelling. a big component of the watch is apple pay and today the journal reporting apple pay has been impacted by a wave of fraudulent transactions using stolen credit card data. couple stories here, guys, to keep our eye on. this becomes more relevant to the way in which we use the device and i wonder, kayla, how important battery life will be to the watch or people's experience with the phone and what blackberry is doing at the same time to try to use advanced battery technology. >> what's interesting a lot of reports have said the apple watch battery will last around a day or couple days and what the fitness bands have been able to do which will probably compete in some form or fashion against the apple watch those batteries last three, five, seven days. if they can create a battery

that's small enough to fit in a tiny elastic band that fits on your wrist it's hard to imagine apple couldn't figure out a way to have a about the terry last that long as well. that being said the watch will have many more functionality than just a fitness band, so do you get the sense this is going to be something that's just draining power nonstop? >> i don't know. i don't think we know. this is the first watch that's going to have a lot of these capabilities and they've limited the features, obviously, to just a few things. it's not a multifunction watch. you know, a lot of people have reported incorrectly that there was going to be 10 or 12 functions on it and maybe it will at some point. just like the iphone started pretty simple and then got rather cup plex. i think we're going to wait and see and we'll see where battery life goes. that's the critical part here. he's right. it cannot be cumbersome. you know, women aren't going to wear it in a cumbersome, heavy kind of situation. anything heavier than a regular watch like this will be problematic. they have to keep it small and

therefore have to do all kinds of tricks but at the same time have apps and features that don't drain the battery. so, you know, i think if you plug it in every night people are used to that with their phones and that will probably be palatable to people. i think if it has other problems and there's going to be with every apple product there's some snafu somewhere. >> sure. >> there will be some. battery is the most critical issue around these things. they've got apps perfected. the look and feel looks pretty good. i think the question is how much use can you get out of it. it will depend on the person who uses it. >> you know, kara, i'm interested, we had the "financial times" profile, the new yorker piece on him, coming out from behind the curtain around the watch. >> the curtain, yeah. not the curtain kelly, they're doing nis in a highly planned pr initiative. >> yeah. >> let's be clear. it's not thank god he's finally come out. >> no. it's to your point they're picking the right moment. these profiles, clearly have the reporter spending a lot of time

at apple headquarters and finally, you know, giving the rest of us, i guess a peak inside. i'm curious if you learned anything about jony ive or apple and reading some of these. >> he's an interesting person. i like he drives a bentley. i don't know. i think it's important. the thing is steve jobs did one of these stories every time a product came out. he was on the cover of "time." just a different time frame back then. he always sort of did this whole big intro. he was always on the cover holding the product like it was an ad. i don't think this is unusual. they just are bringing out more of the various executives that are critical and jony ive has always been critical to the company. they just are displaying him. tim cook, you know, doesn't need to be front and center of all these things and in this okay, the watch is jony ive's project or most yap lated with it. it's everybody's project. it's right to bring him out. he's an interesting and witty man and he's a great

representative for apple and so they're rolling him out everywhere they can. >> any part of that strategy, kara, do you think is providing cover for tim cook in case the watch isn't as successful as some are expecting? >> no. no. no. i mean, yeah -- >> i like the intrigue. >> i like your intrigue, but i don't know. seems complicated. >> a funny line saying when you ask him about how important jony ive is, he does that slightly disingenuous thing where he says he's part of a team. >> no. you know, tim cook actually does think that. he's very -- he doesn't need to be at the center of attention. but he is enough. he's -- he talked about using it as a fitness device and he a's he is more team -- you met all kinds of executives there now. you know a lot more about the executives. i expect when they redo the stores you will see a lot of angelaa ahrendts. this is a company that sells

products and that's what they're doing by all of these things. they're trying to sell more products. and they're doing a good job so far. we'll see what happens on monday but looks like it's probably -- we'll see. we'll see if people like it. that's really the test if people really like it. >> yes. speaking, kara, of the apple watch event on monday, i will be there live all day on monday. >> me too. >> starts at 9:00 a.m. eastern. we will both be there and be very interesting. >> you're getting the gold one, right. aren't you? >> i don't know, kara. i'm not a watch wearer but maybe i'll have to start here. >> available on monday? >> at least for testing. >> i don't think so. >> finally, hillary clinton has asked the state department to disclose e-mails from her time as secretary of state. clinton is of course under fire for using that private e-mail account instead of an official government e-mail account during her time in the white house. you interviewed former secretary clinton just last week. what do you make of the scandal and the clinton mail server that she was using? >> well, there's two parts to it.

one is, previous people in her job had done that also and it which wasn't clear what the rules are. that said, the clintons, you know, carry with them this idea of secretiveness and it plays into that. she's -- she played by the rules of the time and so it's probably not fair given other people did the same thing. i think john kerry is the first one that really is sticking to these new rules. so that's on one hand. but, you know, you have to politicize everything when it's related to the clintons. people have a sense they hide things. there's a thing around them that this plays into beautifully. it's not good for her to have done this. at the same time, she didn't really -- it's very complicated and especially now that she's running for president. everything is going to be under scrutiny and the clintons have to be like every single thing she does, even if other people did the same thing, is going to be held to a higher standard of scrutiny and that's just the way it is for her. >> of course, transparency is a big issue. >> yeah. >> record keeping laws as well. >> i wonder as well.

maybe you have more insight into this. people have criticized the media for not being hard enough on the clintons. >> what? >> i'm not sure the relationship is so cozy. do you think? it seems like actually the clintons and the media is a somewhat tenuous, difficult relationship. >> i don't know. that impeachment thing was tough. i don't know. i just -- it's -- you know, we've had a long history with the clintons and bushes too and i think the issue is, they're kind of fully vetted in terms of being in the public eye for so long but always something, you know, that -- they have a large -- they've been in politics a long time and they have an up and down relationship and i think as the presidential stakes get higher and especially because she's a strong candidate, the republicans will take aim. the -- there's no other democratic candidate right now. but i think it's -- you know, she's coming under a lot of scrutiny and listen, she's -- if you think in the past all the scrutiny she's gotten and the topics she had scrutiny on this is probably the e-mail gate is

not her greatest -- not going to be her waterloo. >> she has said she turned over 55,000 pages of e-mail to the state department. the ball appears to be in their court. we will see how that turns out. kara swisher, a pleasure to have you on the program today. >> see you on monday. >> sounds good. in the meantime we want to check in on the markets right now. dow is actually extending some of the losses. it is about twice as low as it was earlier in the morning, down by about 161 points. s&p down by about 0.8%. nasdaq down by about half a percent as well. we had. higher in the premarket ahead of what was a blowout jobs number by many estimations, but now the conversation becomes when will the federal reserve raise rates and that what is we will be discussing, of course, in the months to come. shares of foot locker rallying after earnings and profit topped analyst estimates. same-store sales coming in a lot higher than expected and that stock up by about 4.5% on that news. staples, though, slipping after revenue came in below expectations. the company did say, though, it

saw a notable increase in profit margins in the latest quarter but that stock, kelly, down about 2.5% today. >> coming up, it was our top story today. apple set to join the dow jones industrials this month. what it does mean for that stock in just a moment. plus, is netflix the last hope to save the sitcom. well one journalist is making that case and he'll join us to explain a little later on. and think real estate near where you live is competitive. in san francisco houses are setting new records before they even go on the market. we'll going to tell you how and why when "squawk alley" continues in just a moment. woman: it's been a journey to get where i am. and i didn't get here alone. there were people who listened along the way. people who gave me options. kept me on track. and through it all, my retirement never got left behind. so today, i'm prepared for anything

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welcome back. big shift in the markets this morning. with the announcement apple will replace at&t in the dow after the close of trading march 18th. this news ahead of monday's expected announcement and more details about the apple watch. the dow up 166 points this morning, perhaps going back to the strong jobs report. big moves in the dollar in rates and perhaps in expectations about what the fed may do. let's see if apple can come to the rescue here. joining us is marketing manager daniel ives around post nine. >> good to be here. >> monday's event, apple adding to the dow. there is a lot of moving pieces. the different stories about what the company is up to. what do you think pushes apple? what will be the next move here? the apple watch launch? >> the apple watch launch is a

seminole event not just for apple but the wearables market. i mean it's where the next frontier of technology op the consumer side, that's what investors are focused op. apple the gold standard for technology speaks to what happened getting put in the dow and a lot of investors focus on monday's event. this could open up another huge growth area across technology. >> jony ive the designer at the helm of the apple watch spoke to the financial times and talked about the difference between when apple was trying to create the iphone and the creation of the watch that will be unveiled and he basically said that with the cell phone, they hated the phones they were using so they had a clear problem to solve. with the watch they have a high regard for the watches they wear. does that make it harder to design something? >> a bit of an uphill battle in terms of the watch. why it's a bipolar issue among investors and consumers. as apple has shown time and time again, they've really created the categories. that's why everyone that's

involved in wearables across consumer, across enterprise, needs for this to be successful because you need that seminole event, that groundbreaking technology that could really start this next trend. we believe this could be a 10 to $15 billion market opportunity. >> weight your price target on the shares and what forecast do you have for sales of the apple watch if you have one? >> at this point, apple watch if -- we're talking 10 to 15 million in terms of units. >> really? >> we're not talking a major sort of home run off the bat. i think the key is what the trajectory looks like. it's still a small piece of the overall pie and i think investors want to see what the trajectory looks like into '15. >> sounds conservative relative to the estimates we've seen for apple watch sales. it's silly to talk about it before it's out but 30 million one number floating around. >> it becomes a dart board, right. you have analysts across the board looking at it. the key is that you start to actually show traction. it's not about if it's 10, 30 million. for the industry for the wearables market, it's about do

you see traction among consumers and does this open up a whole other avenue of growth even on the enterprise when you think about big data, augmented reality with microsoft. i mean this could be, you know, what i view as a seminole moment for wearables. >> and whether it's potentially another leg higher for apple remains to be seen as the company is going to join the dow in a couple weeks. a lagging indicator for the dow or a positive move for apple? >> the gold standard for technology to some -- in terms of them putting in, it's a no-brainer, as investors view their core technology holding and now it's really about moving forward, can they continue to be successful with this product cycle and really this wearables category is going to be significant across technology, not just for apple, but for microsoft, google. >> still want an old fashioned watch. >> still have the old fashioned watch. >> going to swap it out. >> i will be on-line getting my apple watch. it will definitely be good for

the -- >> the cheap or the gold one? >> i'm not a gold standard one. the cheap one, the sporty one. >> cheap, it's $350, it's hardly cheap. relative to the several thousand dollar one. thanks for being here. >> great to be here. >> great to see you this morning. >> when we come back the demand for real estate in san francisco is wildly insaid properties are setting records before they go on the market. a look at some of those in just a moment. check out the markets right now after what was a blowout jobs report but now the dow is down 178 points. s&p, nasdaq, down as well. "squawk alley" will be right back. can the right treatmentsease? for you is out there. the problem is some of it's in this lab. some of it is in her head. some of it's in this new journal. and the rest of it is in your personal medical history. ibm watson can not only read this data, but understand it. it's trained by doctors. and it's always learning.

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welcome back. a look at the markets. sector board in particular shows red across the board. utilities and this tells you a lot about what's happening today. off nearly 3%. consumer staples down 1.5%. anything that's dividend sensitive, rate sensitive, in

other words under pressure this morning. meanwhile financials and techs and the cyclical parts holding off better. dow off 183 points. the s&p off 18. the nasdaq off 32. it's a strong dollar kind of day, a lot of discussion about the fed moving in june as you guys heard from yan this morning, perhaps markets aren't if fully ready and pricing in. not only that move but could come in the next couple years and today they might be making some of the moves and that's why we're seeing pressure on markets. >> financials were the best performing sector they were in the green this morning on the back of the news that all 3 1 banks that went through the fed stress test did clear the capital hurdle but also moving because we've seen yields in the bond market tick up on the expectation feds can race rates or will raise rates. 10-year 2.24. that's quite an intraday move for the 10-year. >> we saw the dollar index up better than 1%. the euro below 1.09. a one-two punch, ecb moving

yesterday on qe, strong u.s. jobs report today. >> maybe we're going to parody on the euro. that would be big news in corporate america. mine wheel our finding froth series continues. we're looking at the real estate market in san francisco and homes that are setting new records before they even hit the market. josh lipton is live in san jose with a pretty insane trend. josh? >> kayla if you're selling your home in san francisco and don't want potential buyers tracking dirt all over your house selling your home off market is a popular strategy. these are traps nsactions that refer to homes not publicly available for sale. check out the home in the bernle heights area of san francisco. three bedrooms, three bathrooms. the owner sold the home off market for $3 million. that was a new record high for the neighborhood. real estate agents say they're seeing more residents doing these kinds of off market deals because sellers appreciate the

convenience and just as importantly the privacy of this strategy. >> i think it's more common in the upper end of the market. certainly when we get above $2 million, there are -- there are sellers who don't want to go through the marketing of the home and that is their choice, whether we advise that or not, we advise our sellers to put the property on the market and expose it to the market. but they may not want to do that. >> now some agents say they don't advise clients to go off market because they say the sellers can leave potential money op the table. still one agent i spoke to, josh mcadam of pacific union says 25% of his company's deals were done off market last year. and brokers say that 2015 could see a record number of offmarket sales in san francisco. inventory is lean. demand is high. and in the city by the bay

pockets are plenty deep. kelly, back to you. >> all right. josh, incredible stuff. thank you so much. that's from the west coast. let's flip over to europe and bring simon hobbs in as we count you down to the close for those markets and talk about the euro. >> we're accelerating into or cutting our losses in europe going into negative territory in europe because of what's happening here with concerns about the fed and the losses you're having, what we will he see on global stock markets because of the very strong employment report. just for the record, jpmorgan's upgraded its growth estimate for the german economy to 3% for the first quarter. but the big issue is the divergeps between what's happening here, very strong economy, fed raising rates, when is the question, against the european central bank on monday is going to start 60 billion euros of sovereign qe. that big difference is in what is happening is driving these crosses. this is the difference the extra yield on holding treasuries above german 10-year bunds. you can see the way this is a

two-year chart from 0.5% difference right the way up now to 1.8%. of course that makes investing money in the treasury market, for example, here way more attractive than investing it in europe and therefore money is likely to flow out of europe into the united states you think that euro is likely to decline it becomes a major funding currency. that's why the euro is down, partly why the euro is down again today. this is the move, this is a chart just of this year and you can see the euro against the dollar, we're down below 109, has fallen over 10%. this is a huge move down 1.59. on the session just today. major move on the currency. the flip side is, that the european stock market is still doing well, of course. here you see the european stock market up 15% year to date against the s&p which is up 1, but if you're in this country you have to subtract the move on the euro which as i said is over

10%. meantime still a lot of questions over the greeks. they did manage to pay the first slice of the money they owe the imf, $1.5 billion, 1.5 billion euros forgive me over the next few weeks. however the greek prime minister in an interview with the german press said that the ecb still has a rope around the greeks' necks in terms of the way it's funding or not funding not allowing the collateral for use on the greek banks. the greek banks are in negative territory as you can see. critical now is the euro group meeting of 19 finance ministers on monday. the greeks are going to put forward proposals to unleash more money from the rest of europe and we have now from the financial times, some of the proposals they're going to mention or put on the table for monday. it includes employing students, house keepers or tourists to serve as undercover tax inspectors in greece. a big problem with people not paying their taxes. they will be hired on a strictly short-term casual basis for no more than two months and without any prospects of being rehired,

they're assuring the rest of the euro group. those of us that will be going to greece on holiday that the tourists or students or anybody around you could be inspecting whether the restaurant you're in is charging tax and repaying it. in the nemeantime on the travel front thomas cook which is a travel operator had has the chinese buy in on a major stake up 30%. the chinese, all the tour operators were buying into china doing deals there. now the chinese are coming this way, guys. >> the pendulum swings and swings back. have a great weekend. >> you too. >> thank you so much. up next, keeping an eye on the markets with the dow down almost 200 points this morning after that strong jobs report. 10-year is moving higher. pressure on utilities in particular here. more on apple's move into the dow. what that means ahead of monday's big apple watch event. we're back in two.

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good morning, everyone. i'm sue herera. your news update at this hour. mercedes plans to build a new van plant in charleston, south carolina. the $500 million project will create more than 1300 new jobs. construction is slated to begin next year. nissan expanding the recall of its ultima sedan to more than 850,000 vehicles due to a faulty hood latch. the recall affects 2013 to 2015. nissan has not found the cause of the problem and does not yet have a fix. software maker sap is looking to

cut more than 2,000 jobs from its global work force. that move comes as the company transitions into providing cloud-based applications. a new toy story headed to the big screen. with a twist this time. it will reportedly be a romantic comedy that won't focus on the interaction between the characters and kids. it's expected to be released in june of 2017. can't wait. and that is your cnbc news update this hour. let's get back to "squawk alley." >> thank you, sue. apple likely to make a splash monday with an expected apple watch announcement and the tech giant making news this morning with the announcement it will replace at&t in the dow after the close of trading on march 18th. joining us with shareholder perspective on the moves ross gerber, ceo at gerber kawasaki, apple remains his firm's largest position. good to see you. >> thank you. good to see you too. >> your reaction when you heard the news apple would be joining

the dow this morning? >> i jumped out of bed and cheered and woke up my child and he screamed. it was exciting. >> what you talking about? >> well, i just -- so excited. i've been saying this so long. apple is the best company in the world and finally being recognized in the dow. it's actually a sad day for at&t but a great day for the legacy of steve jobs and it's a great day for apple employees and shareholders to get this recognition. i'm excited about it. it brings a lot of index funds into the buying of apple and it will very much help the stock. >> does the stock need help? at this point it's one of the most widely held if not the most widely held stock already. why did it need to be in the dow? >> well, the dow supposed to represent the industrial economy of the united states. it has a purpose. it's not sort of an arbitrary set of stocks. not having the largest, biggest contributor to our economy in the dow sort of makes the index seem foolish in a way.

it's a very good move for the dow. >> but it still lends credence to the fact that people have been saying for a long time that s&p 500 is actually a better snapshot of the global economy because it includes more companies and a more diverse set of industries. >> absolutely. we use in benchmark against the s&p as well, not the dow. >> it's interesting, ross, as well because there are people saying i was reading dan greenhouse, he was like this doesn't matter, the dow is irrelevant, all about the s&p and i think to your point about the headline or the inclusion of apple in the dow it's a great moment, but, you know, what are people -- what is the actual impact going to be? i think the tech sector's weighting will drop after it replaces at&t? >> i think that the reality is that you have a huge set of indexing in the community and this will very much force those index funds to buy apple but it's also so much of the public thinks about the dow still. it has the history, it has the name. you know, us investors know the

s&p more, but there's a lot of emotional positives being added to the dow. i think it's a great thing. remember this isn't an overowned stock. look at the top five active mutual funds for growth they don't have apple as a top holding many of them. so i see a lot more institutional buying that has to come into apple now. >> all right. well apple shares up 1% today on the news, of course, that is also in advance of potentially an apple watch. we'll have to get your thoughts when that comes out on monday. >> it's going to be a great day on monday. thank you. >> i can't imagine what you and the happy dance what that will look like. ross gerber. some questionable moves in the futures market ahead of the jobs data. eamon javers analyzing the news for us. >> good morning. we are crunching all the numbers here and looking at an overall market move here. kind of an unusual rollout to the jobs report this morning. remember today is a snow day

here in washington, d.c. when it snows here, there's gridlock and people can't get to work. at the department of labor they did not do the traditional lockup where reporters are brought in a half hour beforehand and read into the jobs number. they released this information on the web this morning. normally it goes out at 8:30. depth of labor says that the information did not post to the website this morning until just shy of 8:32. take a look at this chart here provided to us by the folks at nanexllc and eric and his team on the left-hand side the red line you see there, that's 8:30 when you would normally see the market start to move in reaction to the data. there was no data at 8:30 this morning, though. 8:32 is the red line on the right-hand side of your screen there and what you see is that there was a big move down in markets at 8:31:02 according to nanex. a big reaction to information hitting the market at that time. by the time you get out to 8:32 or just shy of 8:32 when the

department of labor says this information hit their website, you don't see any movement at all. the movement has already happened by the time this information posted to the public website of the department of labor. i asked the department of labor if they can explain what happened at 8:31:02. they say they cannot. there was no malfunction with their website. getting the data up as quickly as they could. normal procedures over there. what you see is a big move down at 8:31:02 before this information according to the department of labor was available to the public, guys. >> stunning to see, always, how much can happen in a matter of seconds. we know as soon as you have the latest you will bring it to us. eamon javers in washington. keeping an eye on these markets with the dow now down 183 points, the nasdaq is negative as well. it just went negative for the week, ending its four-week winning streak. we will talk more about the markets. before that rick santelli what are you watching today? >> well, basically one term,

escape velocity. maybe we've reached it on jobs. i think we've reached it on treasury yield which is what we're going to talk about. i'm not sure on growth. we'll do a post mortem on how the european markets look one day after a very important meeting. all after the break. [ male announcer ] your love for trading never stops. so open an account with schwab. and when a market move affects, say, a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move, wherever you are. and start working on your next big idea. ♪

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react. super trader laz lo ber reneny here with his take on stocks. dead right on the rally and today he will name the names he likes best. apple and the dow, what it means for america's most loved stock. all that and much more from post nine in about 20 minutes or so. >> good to have you in the house. to the cme group in chicago. rick santelli standing by with the santelli exchange. >> thank you, kayla. i want viewers to look at a chart starting around july of 2014 because there's so many clues as to what's going on in 10s. keep a close eye on that chart as i talk because i want to switch to the white board. one of the big issues is how much we see going on is related to the fed, how much do we see going on is related to an armor russ outlook to investors to what's going on in europe. when it comes to europe you look at the dax it's up about 16%.

but that's in their own currency. it's up about the same as the nasdaq when you look at without their currency and put in dollar terms, of course, it switches up close to 5% as well. so be careful what you wish for with regard to weakening your currency if you live in a country and don't deal in any outside currency the feeling might be different. maybe the best lesson was switzerland this year. let's look at the chart you saw on the screen. here's my rendition. why everything is so important. you've heard me talk adinfa my tum about 217 where we closed last year in 10/. 165 in 5s, 217 in 10s, 217 in 30s. not only is 2015 following the template, where we saw the last and first trading day a little over 3% the same true for 217. if you're a trader first of all, remember, if part of this is about the fed and i can't

predict the fed so i'm going to give you a little different version but it seems ironic to me that the high yield basically today has been around 224. we settle last week at 199. exactly 25 basis points which is if the fed normalizes probably the steps they're going to take. remember the 239 level. we had all that consolidation if you recall in october. that was huge. it gave us so many important levels, especially when we consider what happened with the flash crash on october 15th. so here's what's important for traders. if we close above 217 i think we will, that's going to put in a bearish trap in here for a while, then that's key levels to look at. you're going to do a boatload of work, 232 to 238. so that's going to be the congestion here. the november spike was 239. all those august lows were 234. but here's the key. the next big level is all the way around the low 260s. so if you want to keep everything in perspective those

are your big, big areas and if we reverse out within three trading days of this close which will put you at wednesday and settle under 210 would pretty much reverse out the move. back to you. >> great stuff. important levels to watch here on rates especially after the jobs report. thank you, rick santelli, for us this morning. up next, keeping a closer eye on this market. the dow jones industrial average off 200 points at the moment. plus the "unbreakable kimmi schmidt" from tina fey debuts on netflix today. here's a quick look. >> i am one of the indiana mole women. >> from the news. >> i ate beans out of a florida marlins cap. >> i'm having candy for dinner. >> scram, you stupid -- >> oh. >> our next guest says sitcomes are in dire straits and netflix is the only thing that can save them here. he'll explain when we come right back. 's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good.

it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping.

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stearns & foster, serta icomfort, even tempur-pedic. and rest even better with sleep train's risk-free 100-day money back guarantee. get your best rest ever from sleep train. ...guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ welcome back. you see 200-point decline in the dow jones industrial average. same for the s&p off 22 points. the nasdaq giving a 43 points at 4939. let's bring art cashin in for his perspective on the sell-off. >> the jobs report got everything started and we got the secondary reaction in the dollar which had spiked earlier and had a secondary spike that was followed by a jump in bond yields and then we started to take out technical support here

it that was critical support at 2058 to 2090 on tuesday's sell-off stopped at 2087 took that out and then took out the 2085 selling accelerated on that and there was second tier support around 2080. we have taken that out. i hope somebody has a tv set turned on down at the fed and they can see this. i mean the markets assuming that being data dependent they are now forced absolutely forced to take patient out of the statement in march. >> are you suggesting that's the wrong thing to do here? because the market reaction would suggest as you mentioned rates going higher, utilities under pressure, would be a healthy evolution if the economy could handle it. >> the markets you're watching they feel the economy is not really strong enough to handle this and again, you know, it's going to be an unusual rate hike, the way they will do it is they will pay the banks higher

interest on the excess free reserve. $2.7 trillion in excess free reserves and wind up paying up so the fed will be spending money every month in the billions of dollars. a highly unusual operation if it comes off. >> i wonder what it will take for the markses to regain footing here. better economic data, a different message from the fed or adjustment to the new paradigm we're entering? >> i think they would like to feel that the economy is strong. let's not forget as i said earlier this morning, the fed is getting ready to hike when every other central bank in the world is getting ready to lower things. that is going to -- all history tells us, that that is going to make the dollar spike way, way higher. if you're a multinational that's going to really tear apart your earnings and that's the kind of terror you're seeing in the market to take it down 200 points. >> goldman among others reiterating it expects the dollar will continue to move

higher. we've seen a big move. we're not back at historical highs are we headed there and how much of a headwind will that be? >> you're probably headed there. it looks like the euro is going to par against the dollar and you can see it's not just in those asset classes. look at gold, down $25. so you're getting a tantrum all around the asset classes and the fed should pay attention. they've got couple of chances to do some speaking for the next day or so and then they have to go into their quiet period for the march meeting. somebody should get out on the podium and try to calm the markets down a little. >> s&p at 2079, what's the next level you're watching? >> the next critical level is down at 2065. so we've done some damage to the charts here. you close here that will bring extra pressure. >> thank you. >> my pleasure. >> art cashin. >> if you find yourself laughing less at tv comedies recently you're not alone.

modern sitcoms are in dire straits and he writes how netflix could be comedy's last how as the new tina fey produced show "unbreakable kimmi schmidt" hits netflix this evening. jason lynch a contributor and joins us at post nine. >> good to see you. >> last may tina fey was talking about the sitcom. >> yes. >> what happened? >> so nbc had every intention of putting it on their schedule mid-season and they hoped it would debut around now and then come fall nbc looked around and said we have forgotten how to launch comedies. we can't make comedies work. they don't have comedies on must-see tv thursday nights. this is a problem that all the networks are having right now. think back to a decade ago. "friends," "will and grace" "everybody loves raymonds" the sitcoms and buy and large except for big bang theory and "modern family" they can't launch sitcoms anymore. >> is the problem that the

scripts and the plots aren't coming in or is the problem that the networks aren't willing to put the budgets behind the development? >> the big problem is patience. every sitcom even the best sitcoms, needs time on the air to hone its characters, develop its characters when you think back to a show like the office or parks and rec, the first season was not that great and those, these new shows don't get the time on the air anymore to hone those characters to develop a comic voice four weeks and they're gone and that would have been what would have happened with "unbreakable kimmi schmidt" which is hilarious but i don't think audiences would have stuck around to find itself which is duts by episode four. >> what is the odds netflix becomes the hero in this situation instead of just a repository for a sitcom that didn't make a network? >> i think netflix was smart in taking a show that really has potential to be the next 30 rock and this is going to be like one of the building blocks for them because they are branching into sitcoms now as they are now trying to go beyond niche programming and being

everything to everyone and comedy needs to be part of that. you have kim mi schmidt, another sitcom with lily tomlin and jane fonda, will arnett sitcom next year, so this is a smart first move. committed to two seasons of this show and this will help them as they start comedies like with dramas. >> what's the mark for success given that we don't get viewership numbers or ratings. >> that's an excellent question. i was talking to nbc president bob greenblatt about this and he said until netflix announces ratings which it doesn't sound like they're going to do, riff show on that network is a hit and that's going to be the case with "unbreakable kimmi schmidt." >> that's as good a place as any to leave it. appreciate you joining us. >> we are still watching the markets. 191-point decline on the dow this morning. the s&p off 20. you heard the concern art cashin has expressed here. more in a moment on "squawk alley." at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good?

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see car insurance in a whole new light. liberty mutual insurance. at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping. welcome back to "squawk alley." keeping an eye on the markets with the dow off almost 200 points and if you want to know what's behind it look at the sectors under pressure today. the utilities off another 2 or 3%. big debate over the last couple weeks over whether you should buy them or not. today the answer no.

>> rates are going up in the bond market as well. you've seen a lot of companies rushing to borrow this week. a sense on the corporate side that the window could be closing, so any deal financing you saw, we always mispronounce that. >> pronunciations for people involved in the deal. >> they did one of the biggest bond deals on record this week so talk is of a bond bubble potentially and whether that window is closing. >> a look at the 10-year, 225 or just about 224, in fact, today. it's been volatile so far this year. we just heard as well discussion about the fed perhaps moving in june, removing the patient language, the rate hikes that art cashin indicated are going to be different this time. now everybody trying to game what that outcome will look like and what it's going to mean. >> watch the s&p today. you heard art cashin talking about how the market broke through the 2085 level and then broke through 2080 the level at right now just very, very fractionally above 2080 a very important point. >> what are we hearing from big

money in the market, if you want to follow the money follow it now. the quantitative easing in europe and japan. >> monday when it starts in europe. >> and monday is when you're going to be in san francisco and i can't wait for that all of that. >> i will see you live from san francisco from the apple watch event but for now it is noontime on the east coast so we'll send it over to post nine and the halftime report. ♪ welcome to the halftime show at post nine at the new york stock exchange. stephen weiss is around and just a moment still on his way fighting traffic the managing partner of short hills capital, his lovely face in a few minutes. jon and pete najarian co-founders of optionmonster here on time and haslo is as well, the president of ber reneny associates. steve liesman with us for obvious reasons back at cnbc's headquarters. our game plan