with friday and yesterday. it's wednesday. march 11th 2015 and squawk box begins right now. >> live from new york where business never sleeps this is squawk box. >> good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with joe kernen. andrew is on assignment. our top story the global markets. u.s. equity futures are looking better than they were yesterday at this time. looking at some bit of a rebound but right now the dow futures up by 74 points. yesterday dow was down by 332 points. yesterday was a huge drop for the s&p with a 35 point decline. nasdaq is up by 16 points above fair value. let's check out the european markets in the early trading there. you'll see right now similar

rebounds there at least for the cac in france and dax in germany. germany right now the dax is up 1.5%. the cac is up by one and three quarters percent and we keep watching that greece market because of what it tells us about negotiations right now. in asia overnight you saw that the nikkei closed higher. didn't follower as it tends to do from time to time. it closed up one third of a percent. the shanghai was up slightly. we'll be talking about the broader markets including currencies and commodities in a molt. but stock has a look at the big stories driving today's trading. >> let's start in europe. ecb president mario draghi set to speak at a conference in frank frankfurt. back here in the states there's plenty of speculation about what the fed will do or say at its next meeting. that two-day gathering is set to begin next tuesday but today the markets will also focus on the

treasuries $21 billion auction of notes. and also worth watching today after the closing bell stress test. the fed is going to release capital analysis information on the nation's biggest banks. >> a lot of focus on currencies. the euro is down about 12% against the dollar. just this year. many times we have talked about how clear at 135 or 140 it was. i don't know whether you put the trade on and stay this long without covering but it was -- if you wanted to make a lot of money and it's a commodity and leverage and everything else that's all you needed to do. >> 106, every day. >> didn't need to do anything else. >> every day. >> right. a lot of people are now saying it's time to cover but not everyone. opinions are coming in on how to play the situation. jeffrey argues investors should not short the dollar right now. he says the currency is showing few signs that it's ready for a

correction. stay with the trade. stay with the short euro at least for now. many are in a significant way long dollar but this time the consensus is right and their positioning could hurt portfolio. check out the major currencies we're looking at right now. i have a lot of thoughts swirling in my head to explain what's happening right now. some might be causing this others are just a consequence. >> 314,000 or something like that. >> last time i had pie. >> right. >> so over 300,000. they're going to take out patient probably but now what we talked about yesterday.

do these guys have -- does yellen have the nerve if the dollar gets stronger. >> market keeps selling off. >> dollar gets stronger. hurts the multinationals. >> if you look at what happens -- >> then you don't believe the unemployment rate. >> no i'm looking at the broader picture. >> the biggest bank in the world. of course he does. >> maybe the fact that there's not inflation anywhere. wages don't want to go up at all. >> small businesses now are racheting up their forecast for inflation in the next couple of years when they haven't for the past ten years. it's finally getting better. >> believe it when you see it. >> either you have to believe

5.5% or say a lot of it is part time. >> do you believe it? >> no i never believed it. >> yellen said they don't believe the headline either. >> it seems like a 2% economy and everyone is talking it up to three. but it wouldn't surprise me if the markets did go up. >> data is getting better there and some people are talking about europe having a year we had in 2013 because itsz wide open. >> we have people that spell it spigot. >> i think so too. let's talk about energy prices right now. the government is going to be releasing oil inventory data at 10:30 eastern this morning. late yesterday they reported the first weekly drop in crude supplies in two months. check out oil prices this morning. they're up 30 cents but you're looking at wti well below $50 barrel. brent at 5756.

as for gold the commodity is on a 7 day losing streak. prices this morning around three month lows down another $2.50 to $1,157.70. >> also on our market watch this morning, yields the ten year take a look at that. it's at 214. there was a lot of conversation we had the first day this week where we were saying the ten year had it's biggest five week run in like 20 years. it was up more than 30%. so the focus reapproximate mains there as people try to gain what the fed is going to do and when it's going to do it. >> that will lead into significant issue with the housing markets and we're going to talk to the property brothers later this morning. >> so you're talking about a 30% rise in the price or yields. >> in yields. >> 33 or 35%. something hike that. >> i thought it was -- i can remember thinking we're off to

the races. remember a couple of times we had good employment reports. >> they think yields will come back down. >> in terms of yields it's been lower lows and lower highs. so there's the rise there. that's in terms of yield. it comes down and down -- i don't know. it's still on a declining pattern which makes no sense as we get closer and closer. >> i still hear people say to becky's point we're going to get to 1.5. >> i know. >> how many -- what is it right now? >> zero. >> and this place is negative. that seems -- i want someone -- i want to take out a mortgage and have someone pay me for having the mortgage.

wouldn't that be good? here's some money and here's some extra money because you did it for me. >> it's been probably the hardest trade over the last wouldn't you say 12 to 18 months to figure out. so many people called it wrong. rates are going to rise. they're going to keep falling and go down. then they start rising. >> been pretty bad on oil over the last six months too. >> that's for sure. let's find out how the strong dollar is playing out in europe. phil joins us from volkswagen headquaters in germany. hey there, phil. >> hey, scott. it is a topic of conversation here. have you seen how strong the dollar is relative to the euro? i've heard people talk about it while we're here. look at the dollar it's up 20% relative to the euro in the last year and from the perspective of the people here in germany when they look at the euro it's sinking to a 12 year low down under 107. is it possible we could see the

euro down at parody with the dollar? how far will it fall? there's some discussion that perhaps we see the euro go down to .85 relative to the dollar. we spent yesterday at the audi headquaters in the southern part of germany. most of the audis that are sold in the united states in fact all of them, they are shipped from germany over to the united states but when you look at the auto energy overall in terms of the number of european built models sold in the united states it's only about 5% of the market. yes there are some models that will certainly benefit more than others because of the relationship right now wean the dollar and the euro but overall the currency ill -- impact is limited. they're not built in the united states. they're shipped from here. that overtime could alter, especially when you have the

plan coming online in mexico next year. jeep renegade is one vehicle we talked about getting quite a boost. remember the folks at fiat chrysler they're building that in italy with lower costs, european costs and then selling it at a premium in the united states. when you look at whether it's fiat, chrysler keep in mind that the impact for the euro dollar and that trade right now is fairly limited. >> trying to figure out my three favorite cities in europe right now. so you must notice it over there. >> you want to come on vacation don't you, joe? >> have you bought anything over there? what are you eating over there? >> we have not gone on a shopping spree. >> huh? >> me no.

never. we've had a little beer. there's no doubt about that. currywurst. but it's interesting listening to the people. you hear people talking about how weak the euro is right now relative to the dollar. however when we talked with audi executives yesterday and we asked about the impact they're pragmatic about it. they said we haven't seen in a long time. do we expect it to last? no. that's what you hear from a number of the business executives over here. >> i don't know why. why would they think it was going to last. we vnlt started raising rates yet. maybe it's because they have no bonds to buy over there and it's not going to work. i don't know phil the world is upside down. it's crazy. it's nuts. it's insane. anyway, thank you. we will be back in touch. does volkswagen own portia. yes they do. i just walked by one. i'll take a picture and send it to you.

>> would you do that? okay. thank you. i want a selfie though. i don't just want the car. >> you bet. >> you standing at the car. the chaos in the currency market playing out in the broader markets. joining us now is the managing director for bk asset management and steven friedman head of investment strategy. do either of you disappear that you should not short the dollar at this point. >> no, i would stay with the trade. >> i agree acknowledging the potential. >> where would you put a stop? >> so you know everybody is talking about parody party and ultimately it's perfect for the euro. you have qe continuing. you have troubles with greece and you have essentially the fed definitely raising rates sometime this year. all these three factors should push us closer but i think at

105 when you look at the long-term charts there's a lot there and it's going to stall. i think 110. the whole idea is going to be out the window. >> is there something to be worried about in the velocity of the move? >> people expected it to go the way it has but not this quickly, right? >> it's who is this somebody says that gets bad and slowly and quickly? the reason you have the velocity of the move is everything is aligned at this point. you have the starting of the qe very delayed. >> here's the question though next week when you have the fed meeting do you think it gets worse or better at that point? is there a chance that the fed could do nothing and that makes people back away from that a little bit? >> the interesting thing in all of this when you look at this is to look at the japanese analog. when you have qe it's like quantum finance. every rule we think about is

broken. when you look at what happened in japan there's a serious danger here that we could be one and done. everybody thinks it will be a continuous move upward. you have been talking about this early this morning. it doesn't feel like a 3% economy or like we're jump starting. it could be a situation where we could be in this for a long time. >> you know that i know what you were saying. >> you never know what i am saying. >> no. we were saying what is the euro doing at 140? especially looking at our economy versus the european economy. all the problems with trying to put this -- everything else. what was it doing at 140? why was it at 140 and how did it stay there? are people able to -- oil it's the same deal. it's opec. there's a lot of reasons why oil had no reason being at 120 or where ever it was. how did the euro stay at 140 for so long?

>> it didn't make sense. >> how did it stay up there? it sealed like such an obvious short. >> there's some reasons positive for the euro which could help stabilize things which is the current accounts situation. europe runs a surplus and we earn a deficit. for that reason also because we're far away from purchasing power parody right now. the dollar has become expensive. markets are probably looksing so the market is going to start focussing on the fact that the euro zone is recovering. >> so did the problems of the euro zone result from the whole idea of having the euro or from china slowing and that filtered in or russia or oil? what caused -- or is it what we always thought? the structural problems with the way they do business over there in terms of a welfare state,

sort of a model that always gets too top heavy. structural labor problems. what is it? what's europe's problem that caused it to come down where it was now. >> it was the design flaw in the union. >> really? so the cause did not respond to it. >> in the absence of other mechanisms that allowed for a more synchronized fiscal policy. >> you never met a welfare state you didn't like. >> it's the fact that the euro is a currency without a country. germans should be doing is paying greeks debt and they're not and it's much more expensive not to do that. >> for 30 years our gdp has grown 40 or 50% faster. >> i think it's moving toward the idea of making euro much more efficient. just think about all the friction. >> they don't need to do the structural reforms? >> i agree with you.

in a perfect world they should have a global european. >> not exactly. >> i totally agree with you. they need reforms but the euro itself is a good idea and hopefully going to be a long-term solution. >> you asked me why the euro was 140, asian central banks were making bids all the time. now asian central banks -- >> why. >> they were chasing the trade. they thought it was a good idea and now they're stuck at 150 on their reserves. they're not very happy. >> we just watched it by the way. i don't know if you weren't watching or paying attention to the charts we fell below 106. >> we broke 106 this morning. >> i think that at 105 here we'll stall a little bit. you know i'm not an equity strategist. you guys were talking about this earlier, whenever you look at when qe starts the equity

markets tend to really do very well and i definitely think the european equity markets are going to outperform u.s. markets this year. in that sense you have an interesting trade here because to think about it in very simple terms it's much cheaper to buy european stocks now. you have a lot more bang for your buck. >> same story with japanese stock? >> yes, but it's much more delayed. nikkei already had a big rally because qe started last year. here you're starting it this year. >> so would either of you say, i mean we're looking at like a chart of the euro and the bottom should be at par? can it go to 80? >> it can. it's a political as well as an economic unit. if we get complete political chaos, if greece spins out and they start attacking italy and italian debt it's a completely different story. >> i'd be surprised. i think you need a surprise shot. >> yeah. >> no that won't work.

i need to just vacation there a lot. >> make money. >> cnbc europe? >> we do. >> we have a squawk box over there. >> i could see him on worldwide exchange. a square peg in a round hole. >> you're right. i like it here. i like places that are exceptional but that's just me. >> of course. of course. >> i'm just strange that way. anyway, thank you. >> let's talk about stocks to watch this morning. first up medical equipment maker posting better than expected earnings and revenue. the full year outlook is in line with consensus. verafone with earnings that topped estimates. but guidance is a little light. check out gnc. it's health products are in full compliance with all regulatory requirements. a recent third party test and that stock was up on that news. >> coming up we'll get a little

political. hilary clinton speaking out about her state department he e-mail scandal. reaction from washington next. but first if you're just waking up this morning action check out the futures, up about 76 points after 330 points yesterday. 300 almost on friday. squawk box will be right back. financial noise financial noise financial noise financial noise

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seat. cnbc's chief washington correspondent, take a shot of that. john did you do that? >> did you write your own intro. >> i did not. >> did you change your name? is your name john hardwood? are you going into a different business? are you branching out a little bit. >> oh my goodness. >> are we going down that road this morning. >> i didn't have any plans to. i didn't change the teleprompter. did you change it? >> you need to find a producer. >> and commend them. that's much better. okay. there it is. hey, john. this is my take on this we have known and loved hilary mrs. clinton, secretary clinton for over 20 years now.

isn't it sort of 50/50 in this country. you have your opinion sort of formed about her and nothing that happened yesterday will really change it one way or another i don't think. the republicans saw what they thought they would see looking down and then the democrats said you know what she did what she needed to do. she answered the question -- it's amazing to me that people can see different things. >> i think you're exactly right, joe. she came out and explain idea she kept the private e-mail account. it was because it was more convenient to carry one device rather than two but she also said in going over the records to turnover to the state department that she deleted half the e-mails now when people hear deleted half of 60,000 e-mails what's their reaction going to be? well if you're a democrat and we

saw in our poll this week that 86% of democrats are ready to vote for her. you'll say okay fine. i get it. i believe you. but if you're a republican where her numbers were terrible where she has been a focal point of controversy as is suggestioned for better than 20 years. they're going to say wait you deleted 30,000 e-mails, what's in those e-mails he said this won't be over until we have a thorough forensic examination. she has no intention of turning over hr server. this is a perfect clinton controversy. it's not going to be settled but she thinks to think she can draw a line and move on. we'll see if she can sustain that. >> the clintons have been able to do that. >> well it depends on how you

define drawing the line we got a massive impeachment drama. >> the most popular democrat. >> but they tried to draw a line early in the clinton administration on the issue of white water and what happened was she wasn't able to. got a special prosecutor. they didn't go after her over white water but the other thing came up so they hardly protected themselves. >> i don't think there's anything -- i'd like to see some e-mails where she is yelling at bill or slapping him around or something or. >> here's the crazy thing about that. >> what's the worst that could be in there. something about benghazi? this is politics.

>> sure that's what the republican investigators think but you mention you'd like to see some back and forth between hilary and bill and she said yesterday the stuff i deleted included private communication between myself and my husband but bill clinton said through a spokesman the other day that he's only sent two e-mails in his entire life. both when he was president and none since he's been president. but let's play the sound bite that's the core hilary clinton response to the charges. >> looking back it would have probably been smarter to have used two devices but i have confidence that anything that could be in anyway connected to work is in the possession of the

state department. >> so this is a matter of belief. do you believe her or do you not believe her? we know how people line-up on that. >> well, it's interesting. is anybody talking about with what she told our friend kara swisher? she has an iphone. she has an ipad. a mini ipad. for somebody that said she used one device because of convenience it doesn't exactly square with what she told kara. >> you're right. everybody immediately went to that point from kara's interview. the question is when did she start doing that? >> not all those devices existed when she started to secretary of state or were in popular use so the question is when that happened. but yes there's many more questions that could have been answered had she been willing to stay around longer but she one

and she has had a particular conception of what she had to expose or what she didn't and she is drawing a line. there's a famous moment from the press conference in the white house in 1994 when the white water scandal blew up. she said i always believed in policy but i have to acknowledge i've been rezoned. she has been resistant to some of that and doesn't have a tremendous amount of questions she gets from people like us and republicans. >> the server i don't know does it have a hard drive? could you destroy the hard drive. i would do that? >> what i read from technology experts was if the harddrive is not destroyed a forensic

examination of it probably would turn up the 30,000 e-mails that she deleted but she made clear yesterday she doesn't intend to turn it over. what do you think joe. do you believe her or not believe her? and when i say belief what i mean is she said we scrubbed the e-mails. she said first of all there was only one e-mail on her entire server to a foreign government official and it was to someone in the u.k. she said that hundreds of people she communicated with were on their official government e-mail accounts and therefore that 90% of what she turned over to the state department the state department already had it in it's possession by virtue of the fact that it was on a state.gov e-mail. >> although john i'm probably more inclined to believe her on

this but it still raises the question if you want this to go away why not turnover the server to the third party and let one neutral party go through it. >> right. >> so that you can clear this and get this behind you. >> well that's the question and her answer to that not spoken exactly but it's clear is no i'm going to put this behind me by answering the questions that i want to answer and then moving on and you guys cannot accept it if you don't want to but too bad. >> so i didn't have to answer. >> yeah i want to hear your answer. >> do you know what my answer is i don't recall. i don't recall whether i -- >> she said that what she did, she and her people through word searches through word searches of anybody conceivably who might have sent her official e-mail and all sorts of redundant searches, they took anything

that could have been construed as work turned those over and everything else she got rid of. >> so then you believe her? >> you know what -- >> you don't recall either. >> let's just both say we don't recall. isn't that what everyone uses? i don't think they can get you on that it's not even like pleading the fifth. it's just like i don't recall. >> i think you're right, joe. it's very difficult to come to a conclusion like that if you're not partisan on the other side. >> very good. which we aren't. either one of us. thanks, john. >> you bet. >> when we come back this morning, blurred lines and the music industry today. a jury finds that farrell and robin thicke copied a marvin gaye song. and the numbers show that more people are taking to the skies. why not everyone is happy about that. we'll get to that next.

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♪ >> welcome back everybody. we're in chairs this morning and there have been plenty of things that caught our attention. one of the things i noticed you probably heard about this last night too which is blurred lines which is the song that farrell and robin thicke were so popular with, they lost last night. the jury said that they copied that song from marvin gaye. the song got to give it up. what you're listening to right now is blurred lines.

let's play marvin gaye's song too. got to give it up if you can hear for yourself. this is what the jury decided was enough of a copyright infringement. they actually awarded $7.4 million. >> let's go back to the other one now. >> no it's just the beat is all that's similar. >> yeah. >> i think that's what they actually claimed. >> that is what they claimed. in the past it had to be a melody or something else. >> i don't see it. >> i can kind of hear back and forth but let me tell you about another case that period happened recently this year sam smith winning a big award -- check out this song. this is sam smith. this is stay with me. this is what struck me. i would automatically hear tom petty. go to go a little further ahead in this. again this is sam smith who was the big winner at the grammys this year. this isn't the part.

you have to go further ahead. >> won't back down is the chorus. >> because i know won't back down from barnyard. >> here. ♪ >> only three notes. >> no, it's longer. >> we're going to run out of notes. >> that one i would start singing. >> they're the same notes. it picks up the other half. you have to keep listening. that one i would go into the tom petty song when i was hearing it accidentally. but it was raise a lot of questions about the mixing and the blending. sal smith said he never heard tom petty's song but he granted him 12.5% of the royalties that came out of it. >> yeah. we're not in the chairs. we are in chairs but just not those chairs.

>> it's a shame because you really can't spend 20 minutes ripping on my shoes. >> i can on your jacket which you refer to take off. but anyway i just read some of these lyrics. >> does it really upset you? >> yeah. >> we're going to have our 20 year anniversary on squawk box and we never wore jackets. >> we had all the doorways widened out at headquaters for you. we've done that. we've accommodated you there. >> appreciate that. >> okay. good. >> baby mine. read these words. do you not cry if you hear dry your eyes? and tim burton going to make a live action dumbo. this is after ringling brothers decided to send their electrical

fanlt -- elephants there. they've had a lot of success with live cinderella and alice and wonderland is huge. there's going to be cgi involved and there's going to be elephants and i'm wondering whether you can treat electrical fanlt -- electrical fanlts -- electrical fanltfants on a movie set. >> they're getting rid of them. >> this scene where she is tied up in there. people call heededed me dumbo as a kid. >> i saw this in the theater when i was 3 and cried so much we had to leave the theater. >> i'm sure because he missed his mommy a lot but he shows

everybody in the end. >> i looked at the songs last week. >> the one with the train. my son used to watch that over and over again. i'm excited tim burton signing on with disney to direct a live action. >> had i known we were going to talk about dumbo and stuff like that i would have come in earlier. >> do you have any childhood memories of things people did like that? no bullying? you're fine? >> that's true? >> yeah other people said i looked like a taxi cab coming at them with the doors open. >> you're kidding? >> you do not have especially large ears. >> but you know who does? sully. >> is this all a set up? >> no. >> he doesn't care. he loves them. he does. >> get me feeling bad for you. >> i'm fine. they tucked in. they're good now. it's just the tupe people make fun of me now for.

>> coming up, the euro dropping to another 12 year low this morning and the global markets are taking note. >> seriously? >> we'll talk about the ripple effects next. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant

to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?

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welcome back. the euro hitting another 12 year low against the dollar this morning. it's below 106 at 1.056. mark grant joins us right now. does this come as a surprise to you? >> no becky. as you know when the dollar euro relationship is about 1.25

i said we were going to pairdy and here we are and the only surprise is we're getting there with great velocity. it's very fast. >> a lot of speed. mark i know another thing you have been telling us for quite a while is you think that interest rates will come back down again as the money eventually figures up to come back into american treasuries. this morning we have been looking at things and we have seen a very big pick up in the yield on the ten year just over the last several months but if you want to take a look this morning the latest that we saw on this was around 2.2%. where do you think yields are headed and when? >> let me tell you what happened becky. it's quite interesting. we're some what below the yields at the beginning of this year. we're certainly substantially below the yields at the beginning of last year but what's happened has been an institutional trade that's taken place.

treasuries went down to about a 1.64% yield. it's backed up recently but the back up is technical. what happened is the big institutions and you can see this in the future's market drove treasuries down and then what they did was they front ran the ecb so they got out of pressure ris and bought all the sovereign debt all over europe and when they came in and started driving rates in the negative territory they're making very nice profits and eventually that money comes back to treasuries and drives down yield again in the second leg. that's my opinion. >> when you say eventually what's the timing you would put on that? >> two or three months. the velocity of the markets recently as you just pointed without the dollar which by the way is going to have a significant negative impact on corporate earnings in the united states, we're seeing velocities

pick up and it depends on how quickly they start buying bonds and driving everything into negative territory and i should also say to you becky that the negative yields are something we have never seen before and this truly is the real thing. >> what is it going to be when it's all said and done? >> around 1.5%. >> that's only off by -- he just told us three when he was on two weeks ago. we're supposed to get 3. we deserved 3. we earned it no? >> that may be true joe. you can have whatever you want. i have been coming on cnbc for more than 20 years and if you want 3, that's what we should have. >> why is it 5.5% unemployment with 1.5% gdp then? >> well the unemployment number

as you know joe, is not something that i believe in at all. the bureau of labor statistics keep saying how many people left the work force. 98 million people. it's ridiculous. >> it's absolutely accurate down to the 12th decimal point. >> i like steve a lot but he and i disagree on this. >> okay. all right. thanks. >> thank you, joe. >> what's coming up scott? >> well joe, coming up the financials. did you know that they're in focus ahead of the stress test today? >> i know now they are. do you see how i can read the prompter while i look right at you?

welcome become. the s&p is financial sector up nearly 300% since the lows of 2009. gerhard cassidy covers the banks this morning. good to see. you. >> thank you. >> everybody is obviously waiting for the stress test results. these are the real ones right. last week was fine. these are the ones that matter the most right? >> i totally agree with you. this is the week we find out the banks -- how much capital they can give back to their had shareholders. >> who is the pressure on most? >> i think one of the stories is goldman sachs, the one there's concern about, because their total capital ratio was a little too close. >> because they just squeaked by last week? >> that's true. even though they just squeaked

by we do expect the capital ratio. if you look at the test it came back at the end of the period which means they do have the ability to grow the capital through higher earnings. >> it's fun yu say goldman sachs. i hear people talking about citi. they already pay a paltry dividend. they want to raise it. it's under pressure as is the management team is that fair to say? >> absolutely. pressure looking at the ratios but you're right, in terms of who needs to pass it the most i would agree with you, citigroup has put the money in the people behind the people buying process this year. it should enable them to pass it. >> let me ask you a question wharngs if citi fails it? >> there will be changes for citigroup. >> at the top. >> probably at the top or but level as weapon. >> beck yand joe and i have been talking all morning about rates in the movement over the last

five weeks or so. they've come down slightly. but they did have the biggest five-week run in like 20 years. 30% in a ten-year yield. people are thinking maybe it is going to be a good environment for the banks. is it? >> i think it's getting better. you guys put your thumb on it. it's all about the steepness in the yield curve and the potential that janet yellen is going to raise rates. we're looking closely at whether thiel remove the word were the patience." with the actuality of raising rates in june or possibly september. >> bank of america? >> yeah bank of america is another big name of course that's been under a lot of stress with the past year or two. with the settlement similar to citigroup and jpmorgan. they're in fairly good shape. i think you'll find all of the banks that come out of the stress test are in very good shape. we think they'll all pass. they're going to buy back more stock. the banks are being positioned very well especially in rates go

higher. >> if you had to choose one or the other, woo wow buy a big financial institution or a regional bank? >> i'd go with the big financial institution because they're more attractively priced. they'll benefit more. citigroup or jpmorgan will get a better benefit. >> even with the regulatory overhang and all of that stuff that doesn't ever want to end? >> you have a very good point. it never seems to want to end. we do seat light at the end of the tunnel when it comes to regulatory overhang. we think you'll see more final decisions on rules and regulations by the end of this engineer. >> gerhard thank you so much. >> thank you. still to come this morning, an original julian robinson tiger cub. on the oil and the fed. "squawk box" will be right back.

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stocks bouncing back from yesterday's selloff but fear of the fed may keep markets on edge until next week's meeting. we'll tell you why the strong dollar might delay rate hikes. plus is it time to save your money on an overseas vacation? one of julian robertson's original tiger cub us. and a big shift in the transportation sector. why shifters are leaving the rails and putting their goods on trucks as the second hour of "squawk box" begins right now. ♪ >> announcer: live from the most powerful city in the world, new york. this is "squawk box." welcome back to "squawk box," everybody. this is cnbc. first in business worldwide. i'm becky quick along with

andrew ross sorkin. you do see a bounceback after steep declines from yesterday. the dow was down by more than 300 points. this morning it looks that the dow is up by 75 points. s&p up by 8 and nasdaq up by 16. take a look at the euro it is now, drum roll below 106. 105.71. this is the lowest level compared to the dollar in 12 years. the last time these two currencies were at parity was in late 2002. people knew this was the direction we were potentially headed. tut but this is the speed, the velocity where you're seeing a decline, up to a penny a day has caught people off guard. cybersecurity threat. 80% fail to meet payment card data security standards. that's according to a new report by verizon. the report said most had a tendency to wait until the

clients' checks were approaching before approaching hardware upgrades. president mario draghi is set to speak in frankfurt. and the dollar a 20% plus move since weighing on markets. not just currency markets. here's a closer look at the effects of a big dollar move. the our own domenic chu to go through the earnings season to get a taste of what it the future will be mike for multinational. >> a taste is putting it mildly. how many companies did we see? we just saw tons them come out and make reference specifically to the headwinds coming from the strong dollar. there's a reason why. we were talking about the

repetitivity. becky brought it up earlier. if you look at the dollar index 20% move over the course of the past year. just in february we've been up eight months in a row on the dollar index and that hasn't happened since bretton woods. we're going for nine months in a row if we can get that in march. so, if we take a look at the overall picture for the big moves, 20% gain in the dollar index year after year going all the way back to 1980 it only happened five times. the group took a look and said these are all the times we've seen a 20% gain year over year. only five times it's ever happened. so the universe is limited. we don't see this kind of thing happen very often. interestingly enough when we do it may not be all that bad a story. here's the reason why. we took a look at the stock market with regard to the dollar index on average when i say average, i mean the median. because there's only five observations. we took the middle of that

particular set of observations and said the s&p 500 in each of those five instances according to this is actually up 15% 12 months after those dollar gains happen so maybe not such a bad thing for the stock market. best performing sectors materials up 22%. median gains here. it's positive four out of five times. the worst performing sector energy, that's playing out as well. down about 5% on average. again, median it's possible 40% of the time. the one sector i want to health interestingly enough is consumer staples. the gains are more modest up 6%. over those five times that's the only sector that's up 100% of the time. becky, we all know history is no good. it doesn't predict the future. but still, some traders are looking at past patterns to see if they re-emerge. becky, back to you. our next guest is one of julian robertson's tiger cubs.

he created the macro investment group. things like betting on the collapse of the british 30u7bd. the collapse of japanese interest rates and the fallout after the onset of the gulf persian war. we have the president of argonaut capital management. david, it's great to see you. >> becky, great to be here. thank you. >> it's perfect to have you here this morning. you saw the collapse of currencies in the past. things like the british pound. things like the iesh pound. but are you surprised with the speed at which we're watching the euro decline? >> these things tend to get real momentum as they get going. and the dollar has got a lot of reasons to go upright now. and the euro has a lot of reasons to go down. i think what we're seeing is response to friday's payroll report it's in markets. >> we know quantitative easing began in europe next week. the thing we're looking forward to is the fed meeting next week.

is that the issue that could dictate the direction? >> yeah, i think it's important to recognize that these currency cycles tend tour fairly long in nature. the idea that the dollar can keep moving i think is quite legitimate. and the fed, as everybody knows, is very likely to change their language next week. and is trying to prepare the markets for that. >> you would be in the camp of people saying even though we've seen a massive move tonight try shorting the dollar right now? >> i wouldn't try that. i would stick with the trend and allow it to persist. the dollar hasn't gotten itself to an expensive level at this juncture. it's still reasonably inexpensive if you compare where it's been in the past. i think the market's overreacting right now to fears of rising dollar. >> i think there are problems with earnings growth. >> because estimates are actually negative right? year after year for q-1 and q-2? >> yeah. >> i think you have a problem with negative earnings.

>> it's gotten to that point. single digit -- >> i'm not sure. >> is it a combination or the components. and the multinational and the dollar negative note? >> i think so for q-1 and q-2. >> it's tough to go up. >> multiples shouldn't be expanding either. >> multiples are at a fairly generous level at this point. and the idea that they should expand in a rising environment i think is wrong. >> sometimes, they have and the economy was the reason for the rising rates, right? >> no question. but this is an environment where the underlying economy is doing okay. it's not doing great. we've got reasonable forward momentum. it's enough to get the fed, you know, out of the starting gate. but it's tough to expect multiple expansion in that kind of environment. >> although it is a little looking through the hourglass, alice in wonderland you start talking a strong dollar because of an economy versus other places. incredible low oil prices and

yet we look at that as negatives for the market. >> this reminds a lot of 1995 and 1986 when we had a dollar decline in marketplaces. the market did okay. >> until 1987. >> until late 1987. >> let me say it better than i did before. single digits are probably right -- thank you -- i don't necessarily know if they're negative, but they are it down -- they are down lower -- >> a decline in the year over year profits, growth. >> expectations for earnings is growth. q-1 and q-2. let me say that better. >> let me ask you something that just occurred to me. you know how it would help if some of the peripheral countries could devalue their currency, right? >> sure. >> and that's been a big problem with the euro 105, does that effectively hold the value there? will they be able to do better

now and does this actually help the euro stay together because it's so cheap now? >> what they need is internal devaluation. >> so it's internal? so overall -- because they have their competitor. they're still with germany. >> exactly. >> so they need to devalue it. >> like the marc or something like that. >> it's going to help them negativeness in terms of the international. >> is that more important than international? >> it's pretty important to them. if you think about the structure span of germany. >> that will be a silver lining. >> but there is a silver lining for obvious reasons. it's gaining competitiveness for euro. it's going to impact the united states but mother relatively close to the economy. >> would you be more bullish looking at the u.s. stock right now? >> i would be yes. i think you need to look at what's going on with the monetary easing going on in europe. there's a lot of liquidity being

pumped into the economy at this juncture. the economy looks like it's doing a little better. they have a lower starting valuation point than the united states has so yes, i would be more bullish. >> this looks like a good time for a 10% correction in the u.s. markets, according to you? >> i think that's probably excessive. but i think we are correcting right now. but as i said i think it's difficult to get excited about an environment where you don't get multiple expansion and you haven't gotten subsequent earnings with. >> down for the year now? >> we've kind of seen this playbook before. mid-october, stocks sold off extremely hard. everybody was worried that that was going to be the precursor to something even bigger in the market. bullard makes one comment about maybe the fed should have the flexibility not to raise rates right now. >> yeah. >> the thing reverses and we hit new highs again. the nasdaq hits 5,000. that's overreaction, the question i asked you before

whether this is another buying opportunity that's too hard to see because when fear comes in the market it blinds to you the real opportunity that exists in many cases? >> the fed is very sensitive to the level. market we know that from the comments they've made. the fed put i think is very much in place. but i don't think it's going to get them off of their pack of tightening this year. >> you said you like european stocks within that do you have to be selective, which countries? >> i think germany looks good. the economy is doing pretty well over there. and you have a lot of companies that are sensitive to the currency and the german dax index. this thing has moved up a fair amount recently. it's not like you're buying the lows. >> but you also like japan. >> i do. >> and that is a pretty good move as well? >> japan's a good move.

japan's a chief market but record earnings over there right now which people don't realize, the structural changes are starting to filter through on that economy. we're going to get wage increases which is going to help consumer spending. the productive side of the economy has picked up. exports are doing quite nicely. there's a lot to like about japan. >> we just had mark grant on in the last half hour. he talked about how he sees all of this happening he sees within two to three months u.s. treasury is becoming a much more atraskt place. and he thinks the yield is going to go back down. and he's going to put a time frame on it. you're nodding your head like you don't think that's an outlandish idea? >> i think the long end is going to stay supportive. but the front end is going to back up. i can envision an environment where the yield code simply flattens as the draw of lower yields from europe puts dollar

3resh on u.s. yields. but i don't think it's a bullish environment for fixed income if you think the fed son the move. >> when we were introing you, we talked about one of your big policies is oil-related. >> yeah. >> so what's your big call oil-related right now? >> well i think it's a tough call to make right now. >> in any companies, debt junk loans, prices going up staying low for a period of time? >> i think they're staying low? >> for how long? >> i think it's staying low. i don't think we realize the forward, right now. we have a very steep curve in the oil market right now. pricing in subsequent increases in prices over the next year. and i think that's highly unrealistic. >> and prince said never again 100. i tend to list ton him. they really would like it to go back up wouldn't they? >> they want to squeeze the share price. >> they do.

they're willing to have prices lower for a period of time. >> market's really up. >> yeah, squeeze them out of business. they're nice people. >> david, thank you for coming in. it's really a pleasure having you here. >> sure, happy to be here. >> how much is in your fund now? >> still not talking about it. >> can't even tell us an approximate size. you don't have to tell us what your return was. >> the returns are good. >> if it's $10 million we're not that impressed. >> it's more than that. >> it's more than that. >> less than what putin has? >> less than what putin has. >> david, thank you. up next ripple effects from cheap fuel prices as trucking becomes a more affordsable way to transfer goods. and will the fed delay hikes? we'll ask an expert rebecca anderson. and tristan walker wants to

build a procter & gamble for african-americans. joining us on set coming up. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

now with the xfinity tv go app, you can watch live tv anytime. it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more. welcome back to "squawk box." let's give you a quick check of the futures right now following yesterday's 300-point selloff on the dow. right now, a little bit of a bounce. the dow with an implied open plus 72.5. s&p 500 up 7.5.

and the nasdaq looks like it will open higher as well. nearly 25 million containers are moved around north america by ocean liners railroads or trucks. but for the rails which had been the bigger driver could pose the biggest threat. morgan brennan joins us now from kansas city. morgan grgs morning. >> good morning, becky, well, if you're going to invest in transport stocks there's one term you need to know and that's intermodal. what are we talking about? well, is this an intermodal container, basically used to move goods, just anybody anything on a walmart shelf. real quick, it's freight that is moved across the country using multiple mode of transport, trucks rail many cases ocean liners. what makes it special, it's using done container. this is the fastest growing business within freight transportation and the rails in particular have benefitted from this. they've been pulling market share from trucks that used to move these types of goods

exclusively over the road. now, we've seen this because you can move more by train. and when fuel prices are high it's much cheaper to implement a combination. but that said, on the heels of crude, diesel prices have come off. they're about a dollar less per gallon than they were six months ago. and donald bratton of avondale partners notes that this is making the cost of trucking over long distances more attractive once again. however, this is really a point of debate the head of intermodal kansas city central said not so much. >> the rail move by a bull in comparison to a truck move regardless of what the fuel prices. >> reporter: even though this is really what handlists are watching right now, to see whether these lower fuel prices are going to encourage more of these types of containers to move by truck and therefore, take market share away from the

railroads which in many ways can be the biggest threat to the railroads from falling crude prices even more so than any potential decline you can see in crude by rail volume. this is really the area to look at when it comes to transports intermodal. back to you. >> hey, morgan i guess when the trucking industry decides to pass the savings on to the shipping customers or whether they will boost their own profits? has there been any sign that they've been rolling back prices yet? >> reporter: so when it comes to different modes of transportation, rails, truck, they implement fuel surcharges. when fuel comes up you will eventually see -- all the companies will tell you those savings do eventually make their way out to consumers. that being said when you see diesel prices come off as dramatically as they have in the last six months. the trucking bills come off faster than the railroad bills. at least in the short term. >> thanks a lot.

coming up markets look to rebound. at least at the open. after yesterday's selloff. rebecca patterson will join us to talk the strong dollar. and combliximplications for the fed and their portfolio. there's an elephant movie coming. i do remember something like an elephant. she's six months away. politically, it's going to get tough. protection sentiment will rise. the latest update. plus we'll tell you why crystal meth is legal in ireland today. you had heard me right. what! >> yes. >> announcer: time now for today's aflac trivia question. what company was among the original 12 dow components in 1996 and is still there today? the answer when cnbc "squawk box" continues. ahhhhhh. liberate your spine... ahhh-ahhhhhh......aflac!

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until thursday at the earliest. that is bizarre. when we come back this morning, how worried should you be about the strengthening dollar? could it delay the fed's rate hike? >> steve liesman will join us to talk it. as we head to the break look at the futures. they're look better today. not as high had as yesterday. but of course after the dow gave up 300 points yesterday. s&p futures up over 6 points nasdaq up by 14. stick around, "squawk box" will be right back. why do we do it? why do we spend every waking moment, thinking about people? why are we so committed to keeping you connected? why combine performance with a conscience? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you it's everything to us. the s60 sedan. from volvo. this month, get these exceptional offers on a new volvo.

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♪ ♪ slow ride take it easy ♪ welcome back to "squawk box," everybody. among the top stories, google's cfo is retiring saying he wants to go backpacking and spend more time with his family. the company plans to name a replacement within the next six months. rumors on the next generation of iphones. apple is planning on adding sensors to detect how hard a user is pressing on the screen according to a report in "the

wall street journal." they want to know if you're beating up on your phone maybe? the device will be able to distinguish between a light tap and a deep press which seems like a great way to further confuse my typing. let's go to a check on the markets. the u.s. equity futures are looking like a little bounceback from yesterday's selloff. you got to add this up dow futures up 63 points. dow lost 130 had points yesterday. s&p up by 6, nasdaq up close to 14. and airlines with the number of passengers set to hit the highest level in seven years. planes have been flying at about 80% of capacity last year through november. airline, added 30% capacity per day. the trade group airlines for america cites the highest consumer sentiment in more than a decade. and affordability of air travel for reasons for the study's surge. am i wrong? >> no i'm with you on that.

definitely not. the currency chaos causing some main in the equity markets around the globe but could an even stronger dollar force the fed to put off a rate hike? let's get more on that from our senior economics reporter steve liesman. steve. >> it gets interesting. a meeting that many thought would be kind of an easy call would begin to lay the groundwork for the first rate hike in nine years by removing the word "patience" to describe how long they would wait to raise rights. clashing stronger with the strong dollar and oil prices moving the fed further from the 2% inflation target. here is the core management crisis. from below 2% in early 2013 and many economists say it's headed lower. jpmorgan on the core. saying, quote, we look for oil and dollar moves, to shave about

0.4% points off of core inflation rates in 25th. here's where it complicates fed policy because it is in effect a tightening of policy. a it lowers inflation. if inflation rates go down it remains unchanged but the yield goes up. it's also what matters to the economy. the fed has said quote, they'll look for transitory factors but jpmorgan argues it's not going to become clear in june what's transitory. and the fed, otherwise cutting, even the strength of the dollar more and causing more of a drag on growth. >> does the fed care about that steve? >> they care a lot about that. they care about hitting both mandates. in effect, the truck is not that the dollar will move inflation lower. usually, they look through that. the problem is the starting point here say point that's

pretty substantially below the 2% target. so the question is do they really want to risk moving further from their target in this case? plus, as i said the dollar is already doing the work of the fed as it. >> telling the seniors 35 basis points seems pretty good yield to live on if inflation is negative? >> you can tell them that joe. it's hard to sell. >> it's true though. >> i know. >> but you're right, it's hard to sell. but it is if inflation is negative and the rate you get more money on a fiscally adjusted basis. >> but i would not run for this had office on the real inflation -- you're making money! >> what was the savings rate for years? >> it was zero negative. >> no when you put it in a savings bank? >> oh 4% 5%. >> the good old days joe. >> yeah.

>> we just went through all of this and realized i had like 4.pa%. >> i was just checking my kids' savings account. 0.16 or .016. >> you know those aaa tax rates i had had at 13%. floating rate -- should i have -- no. you should have fixed that. you should have fixed that. >> that's why we have you here. >> zero minus one is -- >> right. >> it does raise a question what jack lew does at this point. >> right. nobody neither the central bank or the treasury wants this. it worst them. jack lew has been out there in the previous sector advocating what it has followed leading to the strength of the dollar. but i believe we're getting to a

point where the effect on manufacturer, the effect on the economy, that the strong dollar is going to become a domestic political issue and there's going to be pressure on the treasury secretary to say something. >> what do you make of the way the market has been reacting since friday? >> i think there's a lot of uncertainty. i think the fed needs to talk here. i think there's some possibility that they keep the word "patience" in next week. i think there's some possibility. >> they're definitely taking it out. >> they're definitely taking it out. but i don't think that's definite, though. >> your gut gdp for the year is likely to come in where? >> 2 1/2-ish. we have a change in our cnbc update of 1 1/2 to 3.1. i think it feels like a mid to low 2s economy. >> mid to low? >> no we have had a bumpup. remember, we were below 2. half a point to 0.7% percentage points higher. >> let's bring in rebecca

patterson, ceo of bessemer trust. of the it's basically the carnegies, right? >> no henry phipps. >> i wish there were -- >> keep doing what you're doing. you'll get there. >> maybe change what i'm doing? >> all right, all right. >> so listen -- >> like trusting your kids, they'll get there, right? >> yeah. >> i referenceded you earlier. i don't think maybe it's happened yet. in terms of i'll summarize for everyone. it was about six months ago, you said i worry about the strong dollar becoming a political problem and causing, as we look at possibility then trade deals, causing protectionism sentiment to come back a little bit. maybe we haven't seen that yet. but the problems of the strong dollar are already here and now in terms of earnings. >> and thank you very much for remembering that. i think that we're seeing some early signs that it's becoming

political with the trade deals being negotiated right now. you're starting to see both sides of the aisle pushing for currency manipulation bills in order to give the president fast track authority. so it's starting to creep up. the one i'm watching i agree with you, steve, if euro gets to parity, then maybe we get a more political focus around the euro. keep an eye on china. very soft. china has aloud its currency to weaken very modestly. they may be thinking we got to do have to do something not to devalue the rememby, but the politics could get more mess where. especially if you have what i call devaluation creation. if china goes, japan, singapore. we have a bigger isk on the u.s. economy and a greater risk it

becomes political and ugly. that to me could be the straw that breaks the camel's back. >> in the goldilocks environment, a ben franklin close. positives and negatives. there's a couple negatives but i can give 12 positives. the economy is getting better. the consumer the oil, all of these things. the one thing, you highlight -- this strong dollar it's moving too quick. it unsettles people. >> speed is huge. steve, you touched on that too. if these currency moves come gradually, companies can adjust their hedging policies they can manage through it. when it comes very abruptly it's harder for companies adjust their hedges and protect their earnings. i think speed is more important than the level for sure. i agree with you. i'm watching china to risk. my job is to watch what can be wrong, as long as the currency doesn't keep moving a big a day or so i think the base case

this is okay. the fed will go slowly in part because of the dollar. u.s. costs will remain low. oil is a major tailwind we've been talking about that in a while. job growth is great. unemployment rates coming down. so i think the u.s. economy is in okay shape. but as you get closer to fed tightening. the first hike in six years, the of course the market is going to be nervous. volatility is normal especially with valuations getting more. >> do you remember i had a deja vu maybe five or six years ago, the word was we were devaluing the dollar. >> right. and everybody was angry. >> we were devaluing and people said it's okay. now, we're making the same argument. >> and/or done for domestic purposes. not done to gain the advantage. >> well jack lew is make -- the

treasury department is making that argument. that they don't want to see, the policies that are being enacted by those countries, as being done specifically to weaken the currency. >> but that is a ridiculous argument. you can't get to the question of intent. if you do it and it has that effect, it's like we didn't mean to start a currency war versus we did mean to start a currency war. >> so then we have to take a step back and say is the only way for the world to get healthy on the back of a stronger dollar? >> no you could have structural reform in places like spain and italy. >> right. and a lot of other stuff could happen, rebecca, right? >> we could have political consensus in america. we could pass laws. >> yeah. there's that and the idea that the only way to get stronger son the back -- but we also have to weigh this becky, which is are we better off taking it on the chin with the dollar in exchange for a stronger europe? because what is the cost of the

u.s. if europe remains -- >> you're basically saying we need to be like germany and suck it up and take the hit so that everybody else prospers? >> i think that's what i'm saying. >> that's tough to say. >> are we better off doing it that way? >> i think you're better off as a politician trying to sell this whole inflation rate and run. >> joe's going to do that. he's going to go out there and convince the seniors and people retired why it's so much better. >> that could be another one next year. we talk about political issues for 2016. i think all the savers in america, that could be a real issue. the german boon yesterday, ten-year german bond at 23 basis points german bonds are now negative. >> i heard 30% of european debt is now at a negative interest rate. >> i think that's right. this is a new world. that will be a factor that keeps us on u.s. yield which is is great for people but for

savers, where do you go? you don't want people to take risks to get a yield. >> at what point does it pay four to take the money out of a bank and keep it in a locker? what negative yield? >> someone could steal it. >> what is the cost of security? people think it's around negative 4? >> i don't know. i still want the mortgage where i get paid. >> it's going to happen. denmark. >> denmark. >> denmark, negative insurance rate. >> we should all buy houses. >> it sounds like a good deal. >> it is nice. anyway coming up -- >> for now. >> anyway cold and dry for now. coming up silicon valley entrepreneur tristan walker will join us. he's taking on the market for a personal care product. but first, a look at the stocks to watch ahead. including a big beast for a chipmaker, stick around.

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some stocks to watch. and that may be things to see in trading for the day. sunoco logistics announcing a

13.5 million units from partnership plans to use the net proceeds to pay out funding borrowing. and sandisk is added to the goldman sachs, emc, outperforming, coming from wells fargo which means the stock could be range bound without any catalyst return. and express. and gnc says its health products are in full compliance with regulatory compliance. the company said the findings of a recent third party testing, obviously, nats reaction to something -- because we don't just come out and say, hey, you don't bring that up unless there's been some question. and there had has been some question, i guess. >> yeah. >> i lot of those supplements are not -- obviously, they don't go through the fda. >> yeah there were questions brought up about particular

substances that are were pulled at gnc and walmart. and this is the rest of things they sell. when we come back this morning, an entrepreneur who saw a gap for minorities. tristan walker said he wants to build a gap for procter & gamble. a record number of millionaires have moved to the united states. we have a new report about people are hitting the million-dollar mark and where they are investing now. ♪

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why the coat -- >> see, now you're in trouble. >> tristan looks good i look good. you look stupid. >> i think he looks good. >> thank you. some of the biggest names in technology have the least diverse workforces. our next guests is one of the few african-american entrepreneurs in silicon valley. he left behind a startup to create a consumer company. tristan walker is ceo and founder of walker & company. welcome. good to have you here. >> glad to be here. >> i was reading about the first brand under your walker & company brand. it's bevel. a razor. why? >> bevel is the first designed

specifically for people with coarse curly hair like me. 30% of men and women have it. pretty significant problem. >> what's different with the razor? >> it's a full intense system. a razor say single-edge safety razor. it cuts the hair level with the skin rather than beneath. if you have curly hair what's the razor going to do? go into the skin. that combined with the shaving cream andbalm. >> you don't think they have another access? >> i didn't know about silicon valley until i was 24. before i moved out to go to stanford for business school. >> the number one business school. >> yes. >> as we just read the piece.

did you see that? >> yes. >> you have big time investors. ben horowitz. ron johnson. >> absolutely. >> the apple -- >> and jcpenney. >> what's he up to? >> he started a brand had-new company. i'm looking forward to it. >> mark schuster. >> he's been incredible supportive of the vision. what's great about the investors, all of them have had the same problems. >> tristan, you said you didn't know about silicon valley until you were 24 and went out there. but you very quickly figured out thousand work your way through? >> absolutely. >> most people think if you didn't grow up with this understanding you can't possibly break in? >> i think it's a matter of hustle. i've been fortunate and blessed to have the stanford community about me. and to educate me about silicon valley. it's all up to me to hustle through and figure it out. i didn't have any network or

contacts throughout. i figured it out. >> why don't you tell our folks how exactly this works with bevel. it's a subscription service? >> yep. >> $59.99. a starter kit. what do you get? >> correct, this the starter kit, it comes with the razor, shave cream, restoring balm. you get 20 blades. this is the 30-day starter kit. you get 20 days. something that a lot of folks wouldn't expect. so this kit is $59.95. right now, this is a 30-day starter kit. we also have a 90-day starter kit which goes for $89.95. and then we replenish at $29.95 a month for customers. folks love it. >> it's a razor. and the money is made with the blades and they're expensive. >> right. >> if you have one of these -- i don't know what this thing is it's got like a ball it's got a motor. it's like seriously. it's like i think it's planned

obsolescence. they bring out a new one every year. i don't know how many blades. >> the first blade will pick up your skin. the second blade will cut beneath. >> is that true? >> and there's like 20 of them. >> yeah. the cost of making single blades is close to nothing, right. for us we don't want to make money on the blades. that's an archaic method of selling in the business. it's about selling the problem with the entire system. will you ever go brick and mortar? >> absolutely. ron johnson has a lot of that stuff. we feel the only way to build a brand as significant with legacy like procter & gamble is we're starting online but you'll see the approach. >> you have to choose carefully. and pick a partner? >> absolutely. care very much in the brand, tone of voice, what we're about. we're deliberate in that regard as well. >> what type will we see?

jcpenney? >> certainly mass retail. definitely going to be snag we push this year. specialty, even our own. how do we reimagine not only the barber shop experience but the barber shop retail as well. >> how many customers do you have now? >> a good enough number. >> one thing i'll tell you just in the past month, we drew 30%. over the past year we grew 30s%. >> still looking for funding? >> we raised $9 million to date. we care very much about the profitability. but we care about this. >> so will will be next in terms of a product? >> so what the company is all about developing brands around problems for people with color. the razor is the first problem we wanted to solve.

we think of problems like vitamin d deficiency. and the prevalence of mischarge in the community. how profound an issue it is. there are a lot of things we can do. we just are now on full-on execution mode. >> issue of diversity on corporate boards in silicon valley. i know this is one you care deeply about. >> absolutely. especially for my board. right now, it's a board of just two of us. we're actually on the prowl looking for an independent director. one thing that's important for me is finding a really diverse independent lead right? for us we're serving a very diverse consumer base. it would make sense not only for the team but the board. >> is it a point for market solutions to ease some of these solutions? >> absolutely. i got an e-mail just the other day from a gentleman in the army, he got to shave every day. he said ramp bumps have been as

big a part of me as my uniform. >> you can make money, employee people. >> it's about building something that people can be proud to support. >> we mentioned you're silicon valley. your social media experience. you were at foursquare. >> i was employed at foursquare it was a fantastic time. >> good luck. >> tristan walker. when we come back this morning, more on this week's big market moves. we'll ask mark acota and doug ramsey if they're preparing reports for a prediction. stick around. "squawk" will be right back. gear up for great.

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looking to shake off that 333 point drubbing that all-inventory data and the euro at 12-year lows also fears about the fed's next move might keep investers on the sidelines. a full plate of market wisdom is just ahead as we count you down to the opening bell. plus the host of the hit renovation show "property brothers" are coming up. >> i will call soon to celebrate. congrats. >> thank you. >> is there any reason to fear the home renovation wave that's flooding the airwaves. could it be a sign of remodeling bubble? stick around to find out. and who wants to be a

millionaire? the details from a new report showing the number of millionaires is growing by leaps and bounds. we're set to show you the money. the final hour of "squawk box" begins right now. >> announcer: live from the most powerful city in the world, new york. this is "squawk box." i don't know why that's -- >> just going up and back. >> a big topic of conversation. >> welcome back to "squawk box." first in business worldwide. i'm joe kernin along with becky quick. and really fancily dressed man named scott walker in for andrew wearing a jacket in for andrew this morning. you got the thin andrew tie, too. >> not that thin. >> that's pretty thin. >> look at this. >> i don't have those really cool leprechauns on my tie. >> that's kicking the can down the road. >> that was free.

that was a free tie. >> they're all free. >> we're less than 90 minutes away from the opening bell on wall street. the futures right now are up -- up 75 earlier. should be an interesting session, i would think, after friday. the rebound on monday. and then yesterday's drubbing. let's look at what's happening in europe. there was a thing where we weren't feeling connected. given currencies and everything and qe is really is. where interest rates are over there, where inflation is we're one big happy family in the world -- well, not so happy. but definitely what's happening there is affecting us here. you can see, i don't remember anything other than the handle -- >> i don't either. >> if it gets under nine points. seven would be different. >> well there have been concerns. yesterday, michelle was here. we were talking about somehow of the individual members were suggesting that maybe the greeks

should step out of the euro. we'll see as these negotiations continue. among our top stories today as joe was leading up to this the euro continuing its steady decline. check this out. because it getting uglier every day. if you want to take a look at the currency. 106.5. we dw see a 105 handle earlier. we'll be watching that closely throughout the day because that seems to be dictateing all the other market. mortgage applications dropping in the latest week. the decline comes as rateses jumped. and in the fund financial rates are focused. the fed will release results. capital analysis on the nation's biggest banks. i have a couple of free t-shirts back on my desk you might like. >> do you really? >> yeah. >> i don't know something that i've not heard before. >> i'll consider them. >> i'm bring them in tomorrow. >> i really thought those were

leprechauns on there. >> why would you say something bad about leprechauns? do you have got a problem with leprechauns? >> not all, i love st. patrick's day. >> you wear green, not orange. >> maybe i'll wear my green sports coat on the show. it's not a good idea to pretend you have a green jacket. i don't think. they got them on sale. and i would wear it. >> you're not superstitious? >> not superstitious -- >> tradition? >> yeah, tradition. okay. the markets are hitting the reset button when it comes to gains for the year but how does yesterday's big selloff stack against the other big pulloffs the market suffered. dom chu joins us. >> hi i know none of us would want to wear the green jackets out of respect for those guys in augusta. the pullback that we're seeing about 3% right now, it's not yet

a pullback the size that we've seen over the course of the past year. i just want to walk you through the five times that we've seen a pullback of this market before we begin rally towards record highs. the first one happened back in april. down about 4%. if you move through the summer here late july through early august you see another 4% drop. two 4% drops. all of a sudden in the fall a bigger 7% move. so 4, 4, 7, here are a couple of 5s, right? then december 5% drop for the s&p 500. 4, 4, 7, 5, 5, 25% drop divided by five times. that mean the average drop in the s&p 500 over the past 12 months has been 5%. well, we're right around 3% right now. you'd have to get down to the 2011/2010 level before this is a 5% pullback. the average of what we've seen over the course of the past year. it's important to note here the sectors that have led to the

line since the all-time highs, energy telecoms. and as interest rates tick up you see those go down. joe an interesting move overall. this is not yet one of those panic modes just a regular rue people pullback that we've seen happen five times in the past year. joe. back to you. >> some day -- i counted the 9.9 pullback in the s&p. >> it was so -- that 7% is a closing basis. you're right. i just hear from the closing prices. >> but i'm saying that's 10. >> you're going to at all it 10 so it's more like a 5.5% 6% pullback on average still not a bad deal right? >> no. i don't want 2008 again. that should last a while. it got wrapped up in bear markets all in one. >> 2011 april to october of 2011 we saw almost 20% pullback in the market and we rallied

back. the president has been there, especial has been there especially the past three or four years we have seen a 17%, 18% correction. doug ramsey chief investment officer of loophole investment fund. he said investors should buckle up for a 25% to 30% correction which could be coming. also with us mark ohada. he's not as bearish but could see a pullback in buybacks and opportunities in the housing market. do you doug, i'll start with you, if based in funnels or basics? >> it's fundamentals. it's where the measured indicators are today. and market option although i've got to say, i mean the most recent high just six days ago. it was pretty broad. the dow and the s&p and the

nasdaq and were all at new highs six trading days ago. and so you know it's pretty gutsy to call a top just six days after it's happened. i also think, maybe i'm just conditioned like everyone else to buy the dips. i think that bear market forecast is for something starting later in the year maybe pushed off to 2016. that 25%, 30%, that's an average cyclical bear market since post-world war ii. >> i guess since you're saying it will move up before that happens, so it will be 25% from where we end up. how much higher would be reasonable in your view that we would go? in other words, if we're go only going to lose 15 from here it's really not 30? will it move up 10 before it happens? >> i don't think probably quite that much. i mean what we're looking for

say narrower push to highs. where, you know maybe it's just the dow and s&p 500 left standing at the end. where the small caps continue to underperform. by the way, with yesterday's carnage, the small caps the russell 2000 is right where it was one year ago a week. another composite, the nyse composite is actually down from where it was last july. we've actually positioned the -- begun positioning for this last summer. i mean we cut equity exposure. we moved around a little bit. but we had been running about 65% for a long period of time in our tactical funds. and we've got the latitude to shift between 35%. so we're 55 now. i do think we'll get that opportunity later in the year to get back toy a very defensive position. >> mark, we haven't talk toud in a while. s&p 115 on the euro even higher as we spoke. bonds were probably about the same. what's new with you looking at

all these different markets? >> well volatility certainly is new, joe, we've seen a lot of that. that was the call this year. it seems to be hardwired into the system. we're in this post vocal world in this etf world. with a stress test causing people to do different things with their treasury baskets. and that volatility we're seeing is showing up in a big way this year. and for us we think that's a really great thing for active management. i mean we are in this qe period where everything just melts up and up and up. and it makes you feel more and more and more uncomfortable as that keeps happening. we get these periods where markets get very choppy. and then suddenly there's a lot to do. i'm actually really really excited about the markets right now. there's just tons to do all of a sudden whereas before you're just not feeling great about all the debt you're putting on. it's like you're squeezing more blood out of the turnip all

along. >> you're excited you're not excited about necessarily getting long with new positions? >> no. >> how do you do it? >> joe, there's places to get long. there's credit right? we have negative rates in europe. we have certainly a situation where the u.s. yields look very very attractive. the dollar looks attractive. we think that spread impression is going to be something like a two or three-year sort of trade manage that continues to benefit the u.s. markets. i wouldn't be surprised to see if you would see yields here for six months. i think that's a very positive place to be. i said that we liked -- we've got a big sort of bet going on in the oil space. it's a little different in the oil space. we've got a lot of high-quality credit that we really like. we put their portfolio in that space. where we're not that sensitive with what happens with the commodity. but we're going to make probably 12%, 15% 20% with that

portfolio. but we also like the building products. you've got a lot of this cost coming out of the system and that's really beneficial for some of those companies. so there's just a lot to do all of a sudden. and it's not really coming markets per se. and i agree with the point around the bay, though that was the call this year that the stock market would be challenged. we weren't going to see this big zoomup in stock market. and we were going to see this bumpy, choppy market. i wouldn't be surprised if we see this choppy market in a stock market for quite a bit. >> why would people stop buying back stock? that's another thing you said with the buybacks that would help a little cash that's missing? >> yeah 70% of free cash flow has been going to buybacks. financial engineering has its limits. there's a certain point where it really stops working. and cap x has to really be the

engine that creates the long-term profitability for companies. and we're hoping that pivot happens sometime this year. we still see about $700 billion in buybacks this year which is an amazing number. when you think about all the changes and the number of stocks there isn't really -- over 5,000. only have 3,000 stocks the markets really are a strange place when you think about how much buybacks have disordered things. but we would hope at some point, right, you see a pivot and turn to cap backs. we sort of see that happening in spaces. and that really will be a great long-term profitability for companies. and that's really where were see it going. m & a is another thing that you see going this year. m & a makes a lot of sense because in a deflationary environment like we have right now, you've got to do something to get pricing power back. m & a probably another way that

companies do that. >> all right. doug, i mean you don't care about -- do you care about talking about individual names? or we sort of know where you stand on this? you can almost do this with index funds or something. >> well we do our focus on the equities long equities is industry groups. it's a quantitative approach and valuations. from a level change. we're very heavy in both health care and technology. we've owned the managed health care stocks for six years. i mean they've been a multi-100% home loan and they're still attractive. >> mark thinks they're fairly valued now, right, mark? >> yeah, we've got this supreme court challenge going on. we're kind of on the sidelines for some of the hospitals. we do like medical devices, though. we think they could see some real benefit from a republican congress. especially if we get a ruling that's favorable as far as the

plaintiffs are concerned here, that could be interesting to see how that sort of pivots within the congress. and repealing the medical device impacts would be positive for those companies. we're kind of on the sidelines with hospitals right now. >> okay. >> i don't disagree with the fairly valued but it's in a market that's very valued overall. >> that's true. >> okay guys. thanks. we still have an anchor named doug ramsey i thought he was coming back. do you remember him? >> before my time? >> do you? >> hey do you remember doug ramsey? >> no. >> okay. >> so old. >> sorry. >> okay. when we come back this morning, who wants to be a millionaire? how about 10 million people. that's the number of millionaires that the united states just reached. we're going to take a look at that growth right after this. still to come this morning, the property brothers join us to talk housing.

and more on yesterday's selloff on what investors can expect today. jim cramer will join from us the new york stock exchange. stick around, "squawk box" will be right back.

now with the xfinity tv go app, you can watch live tv anytime. it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more. welcome back everybody.

this is "squawk box." we've been watching the futures this morning after big declines yesterday you're going to see some bounceback. even the gains we saw earlier, the dow futures up by 54 points to but that in context, you have to remember the dow was down by 300 points yesterday. s&p futures up higher by 6 points nasdaq up by 13 points. again, these are modest advances after the big declines we saw yesterday. >> a new report yesterday showing that since the market bottomed in 2009 a record number of millionaires have been minted in america. cnbc's editor robert frank is sheer. take us inside the numbers. good morning. >> good morning. the rich are getting richer and more americans also getting rich. a new study showed that the u.s. added nearly a half million new millionaires in 2014. adding 12.1 million with specter groups which describes millionaires with a million or more investable assets.

we're well above that 2007 level of 9.2 million. multimillionaires also growing there. 1.3 million households worth $5 million or more. in the u.s. 142,000 households worth $25 million more. wealth at all levels growing. generally, millionaires are bullishes on the markets. half putting money in the stock markets over the next 12 months. 23% plan to invest in fixed income. more than half putting their money in cash or savings. only 39% are investing overseas. with europe now they're favorite region after years of favoring china and brazil. among the millionaires' biggest worries, interest rates, tax ratings and overall economic policies. >> andrew is not here i guess i'll try to answer it or ask a few questions. i mean what can be done to try to stop -- is there a legislation that we should be considering? is there -- can we get

congress -- can the president take some executive action to try to -- >> i mean look wealth is more tied than ever to the stock market. >> so there's no way to slow the growth of these millionaires. >> ask the feds to raise rates. >> right. this could be a slowdown this year. what's interesting if you look around the think tanks -- >> i mean this has to be stopped. all this wealth creation. and possibility. >> but if you look at house wolds worth 100,000, 500,000, all of those categories have growth. >> what is it that we have to look down at these people 500? i don't know. >> i'm marveling that he's keeping a straight face. >> yeah. channeling. >> rebecca was already on. >> at the christmas party, it's like, he's chasing her around i'm like leave her alone.

she's one of our people. >> you told me i think she likes me. it's a good thing, we've been married for 12 years. >> oh, my. >> and they were summaried. >> oh boy. the fast food chain coming up in the big apple that has everybody cooking. they're opening their first restaurant this summer. it's hard to believe fast food chain does not have a fast food front in new york. we'll tell you which one it is. then it the property brothers talk about their show success and whether or not we're in a remodeling bubble. "squawk box" will be right back.

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fast food chain chick-fil-a will open it's first new york city restaurant this summer. the chain generates about $5 billion in annual sales at more than 1800 restaurants. there's a chick-fil-a stand at nyu but they don't have a full-service menu. so where can you get a golden fried breast chicken sandwich and waffle fries? the location will be at 6th avenue and west 37th street. we could almost walk from here. >> it's not far. >> you've had it right? >> i have it's okay. it's fried, isn't it? >> it tastes pretty good right? >> cannot care -- pollo loco is

what i wish we had. grill them right there. i guess it's okay. >> closed on sundays, chick-fil-a. >> they've got -- they have antiquated antiquated notions about things don't you think? look at you you're nervous. >> i'm not the one talking about it. a few stocks to watch on the move this morning, general mills raising to 44 cents a share. verifone cites a negative impact from a stronger dollar. sandisk and goldman sachs, including valuation. still to come jonathan and drew scott aimed to help home ooirns bind a fixerupper and make it a nest of their own. we ask them if the rising rates

will hurt the housing market. right now, a look at u.s. equity futures. dow futures up by 55. s&p up by 6.5. nasdaq up by 14.5. "squawk box" will be right back.

♪ welcome back to "squawk." let's take a look at stocks in the news. brown show sees it below forecast because of disputes at the port. vera bradley, and the handbag maker said business trends remain quote, difficult. and express earnings beat forecast and giving an upbeat outlook for the future year due to promotions. hgtv is one of the hottest networks on television. getting its highest rating ever

in 2014. property brothers getting 6.3 million viewers. what does this mean for buy and selling your home. let's ask the stars of "property brothers" drew and jonathan scott. thank you for being here. >> it's actually the tight jeans that jonathan wears when he's doing renovations. >> killer right there. >> who was the sexiest guy? both of you? >> they consider this one guy. my hair his butt. >> your hair his butt. >> can we see? >> if you want. >> let's do it at the end. >> right, exactly. >> we could use a crowd. up two years in a row, sexiest jeans in a row. >> he declined that's why they gave it to us. next year you can have it back. >> you guys like kidding around and yanking people's chains because i know for a fact one of that was.

>> yeah he was. >> guys i know you've seen really tough times since the housing bubble burst. but you think things are starting to turn and pick up right now? >> yeah there's volatility in the market. we say to people anytime say good time to get involved in real estate as long as you educate yourself. 2013, we saw a lot more appreciation than last year. 2.5% increase than last year. it's time for people to continue improving their credit. continue lifting up properties that they can fix up and put equity into it instead of buying something that somebody else has fixed up. >> i always guy into my city is not going the way other cities are going every city you have different markets. as jonathan said the main thing is education. work with professionals that can help you see where the best investment is for you. >> is it gets tougher to find good deals as we watch prices

appreciate? >> it's tough, there are investors just like us looking for property. we see a lot of bidding wars. people have tried to price their house low to create a frenzy. housing that we're dealing with clients they go $200,000 over list price. >> $200,000? >> we've had that just in toronto filming. and now we're here for the next five months. >> where are you going? >> we work all over. we're mainly from white plains up to connecticut. >> okay. >> vegas -- you sort of made your mark there. that was like a trouble spot. wasn't it the worst place in the country? >> yeah that was the original move down. i looked at the market across the country. florida, arizona, nevada were the hardest hit. but that also meant there was the most opportunity there. when we first moved into vegas, we were picking up properties -- they were destroyed. people had torn them apart. about 30 grand a piece. especially the low to mid-priced

homes, the midpriced have come up a lot. there's not a lot of activity but quite a bit. >> why are you here though? >> we're here one, because we have a large audience for hgtv. >> and because we heard you need your kitchen done. >> can you get over? >> in new york you're getting 2,000 feet yeah for $5 million. that's not the case. we got a home for $495,000 that's obviously outside of manhattan but there's potential in different areas. >> we just -- me and my friend just finished redoing an entire huge house. it was my wife's family house that she grew up in. now, are you guys -- are you guys handy? i mean is that how? >> i don't know are you handy, drew? >> watch this summer. you'll see how handy i am. he is the contractor. >> let's see, i had my wife an

architect, two construction companies and an interior designer. did i remodel? can i take credit for being handy? >> you were the general. the funny thing is i'm a contractor and designer by trade. i went to school for that. but back in the day, drew used to get in there when we first started our business mid-'90s, he would do everything siding. in about 1996 he broke a nail he was done. i'm not picking up anything after that. >> actually this season of "property brothers" it's a little different, you see me get hands on a lot more. obviously, we do up to nine privates at a time. in a year jonathan does 60 renovations, 6-0. >> handy is sexy for some reason. >> no no that's handsy. >> seriously. i never understood. but it is. you can work around -- so i am screwed. >> he's been trying to catch up for ages now.

>> you and i will keep the suit on and the tie. >> the funny thing is we say to people, if you're looking to fix up a home and you really want to have your dream home the fastest way to get to your dream home is to marry a contractor ladies. >> is the kitchen still the number one thing that people are remodelling? >> i think the number one thing that people love the kitchen it's the hot spot for the family. most of us spend time there together. it's the sexy spot of the house. >> well, it can be. >> it can be. >> there are a lot of houses that we toured around with renovations those kitchens are not sexy. it's also the most expensive room in the house. >> it's the room that people hang off the kitchen now. >> that's the 50 shades room. >> wow, it can be. i like to have that open concept. you do have that tv room or family room just off. if you're entertaining you can have that open flow from the kitchen. >> and specialty rooms as well are becoming popular.

people don't want to spend a fortune taking kids to movies. they're building in-house rec rooms, dance studios yoga rooms. >> jonathan put a commercial-grade water slide in a house. >> why not. >> not everyone should do i don't think but it was definitely -- >> it's not just -- you guys combine a little bit -- >> we're connected by the brain. i got most of it when we were separated. >> and the brawn as well. >> yeah. >> the hipster -- >> we just had a guy who brought razors in. there is something that allows it to stay that length too, right? i'm just trying to brush up - i haven't heard. >> it's actually a genetic problem. they're testing to create more property brothers to make more successful shows. >> i'm going to watch this show. you guys are crazy. >> on the show we take the job seriously. we want to help our clients get

into their dream homes, but we don't take ourselves too seriously. >> you guys do really great work. >> some people hear the success of this show. the success of other shows. everybody is remodeling on tv it seems, whether restaurant shows, what have you, a size of the bubble the top in the remodeling market you guys must hear that? >> yeah. and honestly i don't think so. everything slowed down after the collapse in the economy, but when consumer confidence came back people started spending again. this whole home renovation trend has really only picked up in the last 15, 20 years. it will continue. people want a beautiful home. >> you guys haven't seen necessarily normal. people flock to you. they want you to do it. >> some of the people have not seen our shows. we're actually out in different communities. we have real estate agents working with us try to find people that we can work with that just don't like renovations. we do see if they're regular

families, they have regular budgets. that's why you see true emotion on our shows. >> guys that are on tv that want people to know that they've really made it they have an elevator in their house. >> oh yeah. >> now, i do not. have you ever put -- do you happen to have an elevator in your house? >> he has -- >> he has an elevator in his house. >> scott has a single story home. he put an elevator in for no reason. >> the producer told me to go there with you. >> this is -- >> now? >> people that have really made -- >> you know what, we're going outside. >> is that the first time viewers have heard about this? >> i don't though do you think i talk about it on the halftime show? >> you're getting an elevator. >> the gluts.

>> he was on people's sexiest before he got the elevator. >> you got to take it up. >> i didn't put it in the house. i didn't put it in the house. >> you bought a house that bought an elevator. >> i'll say, yes, we have worked with houses with elevators before. it's a great thing. i've seen people who want to put it in the house where it doesn't make any sense. >> did you ever get in the elevator and so you can tell your friends i'm kaling you from the elevator. >> when cell phones came out, i had that big brick phone. it was my girlfriend's dad. i'd actually stand on the corner pretend to make a call so people could see me. >> you don't squeeze into a dumbwaiter, do you? >> is there a way to get down to the indoor pool without the elevator? you can -- >> you wish there wassen inground pool. >> you do allow your service staff to use the elevator. >> the weight capacity -- >> can you guys stay. andrew is coming back tomorrow.

please come back. >> i'm feeling tension from both sides here. i may sneak out. >> guys we want to thank you so much for coming in. >> i'm going to give you a ride in the elevator. >> can i come over later? >> silence. >> exactly. honestly, i love the show. thanks so much for coming in. we appreciate it. >> coming up. we're going to have to hit the reset button on our relationship. coming up we've hit the reset button on -- >> can i -- >> no, you're good. -- on games for the year after tumbling more than 300 points on the dow. find out if there are more turbulent times ahead. be sure to join us tomorrow on "squawk box," when greg hayes, the new ceo of united technologies appears on "squawk box" with us. and harold hamm is back to talk

about the constellation energy brands. to discuss that success. that's tomorrow beginning at 6:00 a.m. eastern, "squawk box." with the stock brothers andrew and -- turning two worlds into one takes love. helping protect that world takes state farm.

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way to work and it's made with ibm. you know what they say about payback, right, you do right? >> yeah, i do. >> payback is a bitch. it's better served cold. we can do this later. welcome back to "squawk box," come on, elevator, boy.

>> oh. welcome back to -- >> i really am going to take you outside and mess you up. >> welcome back. futures -- go ahead, you're doing great. >> the futures right now are up. let me see, they're up 55 points. i guess you should have not bought the house. >> yeah right. it's not your fault. i haven't even prepared for this. i can't do it if i don't have my tie and coat? >> really? >> do you think i've prepared for it? >> todd coleman is a senior -- oh he is senior v.p. of ambercino brothers. rick santelli is here as well. rick do you think we're going to rebound today? rick do you think we'll rebound today or have more weakness by the end of the session? >> you know i think we are going to rebound a little bit today. but i think the fascination with

equities, of course is driven by how to trade the equities at a time where central banks are going in different directions. we have the weakening of the euro at somewhat historic levels. but what's really fascinating is that we're still basically at just about where we settled last year on rates. it doesn't fit. joe, the treasury market hasn't traded exactly correct since the january 22nd ecb meeting. it's stubbornly sluggish with regard to dropping its rates and find buyers when you get days like yesterday where you're down by 300 at one point. up need to pay attention. there could be many illogical incongruent bumps that got us here in the market place. >> 1.5% we heard for the gdp number from mark grant. where do you think consentence sis is right now?

and how do you do 1.5% with 5.5% unemployment? >> i don't know how you do 1.5% and continue that and that's enough to get the fed to nudge rates. i think we're probably more in a 2% to 2.5% range. ecks with a selloff like yesterday is probably not too much of a price, joe. but what is a surprise the lack of volatility in the market which is an intended consequence of our fed policy but what is an unintended policy how to get it back up on the market that's supposed to alert people there's a change happening and it isn't coming. >> are you at 2 above or 1.5 senior more realistic? which is more realistic? >> easily 1.5. i do think the third quarter weakness isn't going to -- >> what about for the year? >> for the year i think we're

roughly between oh, i don't know 2% 2.25% like the op-ed that has m.i.t. prepare a program to write it and make it look terrific. but, yeah i don't think we'll see much. the other thing, blue yield 00 minus 19 basis points. options didn't go very well in russian. and we see that the treasuries aren't acting quite right. but what this tells me it's pretty much i think the markets are trying to exert their different personalities, under the thumb of many repressive scenarios. and i think it's really going to get complicated to trade. but i still think at the end of the day, equity are probably going to give up ground. i don't think it's like the epilogue for equities. i hate saying tina.

but it's partially true, i do think we focus on one responsible for europe outside of what they're preaching. and i think that's an exodus of money out of europe. we saw it in greece. we saw it in russia. and not enough people are talking about it in europe. i think i saw somebody rate the panfication of europe. it's not my quote. i don't know who said it. but the outlook in europe in general to give mr. pickity even more fodder to brag about how socialism works so great and he goes into an area of country that that we don't have positive gdp until we celebrate our 70th birthdays. >> rick thanks todd see you guys later. i wonder if the dollar's had its run? at least that would take pressure off of -- >> yeah but if you're still looking at the central banks calling the shots.

>> maybe we don't rise as quickly. >> that may be the call. i think that's what ends up happening. >> so -- you can do this -- >> i wanted you too, but we can't -- >> i wonder why. >> is there music? as you're -- >> muzack. >> still to come -- >> let scott read this in come on. >> thank you, joseph. talk to greco. >> man. it was a bag morning yesterday for jim cramer celebrating ten year of "mad money." we catch up with him after the break.

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purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more. let's get down to the new york stock exchange. you rang the bell. was that on your bucket list? >> it's pretty exciting. the great team i got -- yes, yes. >> bucket list. >> what happens up there, you look at the vast panoply of the greatness of cap allism. you're up at top for the day. you've got tone joy it. >> quite a lineup down there. who is that tall handsome man

next to you, jim, on your right. >> that's mark hoffman, he's our boss. >> yes. youthful. >> i'm trying to find my nephew cliff mason who appeared. comes out every five ten years. >> never seen him before. i knew all about him. >> that was cool. >> i saw him at our breakfast, holy cow, i've got to tell my sister he's here. i saw him at thanksgiving four five years ago, tough to find. >> head writer. >> he's good. >> he is. >> head writer and only writer since the beginning of the show. >> the dollar's moved fast and that has some people saying it's disorderly and that's why we had those, you know separated by monday but we had two tough sessions. have we done enough to just wake people up or is this -- we ask this a lot, don't we? we never know if it's going to

turn into anything. >> i thought this morning looks very important. what happens we're not going to see a change in the dollar until we see -- a peek in dollar until we see europe getting better. when i saw the stock market up it heartens me if we see a sign things are getting better in europe the pain will in. yesterday we had dick fisher saying we needed to tighten immediately. i'm hoping stanley fischer, who remembers the asian contagion, recognizes we could have a major run on brazil mexico turkey south africa. if we tighten right now. i think that was what yesterday was about and i feel better today. >> jim you want to talk about the eagles at all or no? >> no. >> i saw your tweet. i thought i'd check. >> why do you hurt me scott? >> i don't know. you're number one fan, i want your reaction more than anybody else's. >> i'm a fan. there's a master plan here.

i know it's not just to get guys off the operating room who have had their knees redone. it's just not about knee surgery here. i have to believe that. >> does this translate to villanova, too, or not worry. >> i'll take villanova in a bracket. i think it may have an easy path who has the easy path. >> today starts in earnest. big east tonight. i'm picking big ten rutgers -- no. sorry. i'm starting on you. >> thank you, guys. >> starts tonight, though the tournament? >> some of it. >> not the big the other ones begin. >> coming up now the time to take a contrarian view of the markets? countdown to the opening bell is next.

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♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver? for those who are keeping score, the euro dropping 12% against the dollar so far this year. many hedge funds and big institutional investors are long the greenback. but jeffrey gundlach says this time the consensus is right and a contrarian position could hurt the portfolio. investors should not short the dollar. we heard that from other guests today as well too. >> futures, set for the trading

day here after yesterday's big slide, we will have an implied open higher not as strong as earlier in the morning but looks like a positive start in trading. >> thank you for being here. >> a pleasure. >> pleasure. >> 105 -- >> really. >> viewers of your show weren't watching this. 105 on the euro. join us tomorrow. "squawk on the street" is coming up next. ♪ everybody get up ♪ >> yep, good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer david faber at the new york stock exchange. after the second worst day for stocks premarket steady. the euro is the story. as you heard joe saying falling to 1.05. we have not hit parity since 2002. vinner tos at 1030. the