i'm mary thompson with breaking news with b morgan stanley. a source he at the bank confirming to cnbc it is cutting 1,200 jobs in its fixed incomes commodities and currencies unit of those 1,200 jobs, 470 of them are front office jobs. the rest are support staff. in a memo released to employees, the company is saying that the cuts will result in a businesses that are critically and countriedably sized for the market. you might recall that fixed income had very, very bad quarter in the third quarter. at the head of that business column has said that the fourth quarter is trending very similar to the third quarter. the can be will be taking a severance charge. morgan stanley confirming to cnbc it is cutting 1,200 jobs in its fixed income commodities and currencies unit.

470 of them front office jobs. now to carl can't ania and the beginning of "squawk alley." >> good morning. it is 8:00 a.m. at apple headquarters in cupertino. 11:00 a.m. on wall street, and "squawk alley" is live. ♪ good tuesday morning. kayla is off, but with us as always john and myself at post nine. joining us today jessica lessen, the founder of the information and cnbc contributor. jessica, great to have you with us as well. on a crazy day, cramer called it an emotional opening, and it was certainly that. we're well off the lows.

oil has gone green after a miserable morning. let's start with the markets falling, of course, since the open right now. dow down 86 points. s&p is down about seven. we mentioned oil going positive. our bob pasani on the floor watching everything. bob. >> we are in the middle of a modest rally. remember, we were -- we got down 20 points in the s&p 500 right at the open, and we have more than half that with the s&p down only six points. let's take a look at the market internals. give you an idea of what we're looking at. it was a crummy open. a 10-1 declining to advancing stocks. that has now been halved. it's still not great, but a lot better. new lows have expanded. over 300. there's about 2, 500 stocks that matter at the nyse wroosh let's do the math there. that's one out of every eight stocks. it's higher than recently. it's a modest up tick in volatility. the vix is about 17. that's not in alarm bells territory, but it's been moving up in the last couple of days.

some of the energy names are at new 52-week lows. they've come off of the lows in the last hour or so as oil has come up. you see some of them are positive. transports of the other group, these are industrial stocks that have been hitting new lows, lug some of the railroads like union pacific, kansas city, ryder, ch robinson among the logistics companies. also on the up side. what you can see is this huge divergence between the dow industrials and the dow transports. with the industrials down only 1%, the transports down more than 15%, and that's because many had of them are involved in the transportation of the commodities, and we heard about all sorts of issues around that recently, lug this morning with some of the big companies like angelo-american commenting on that. a small group of industrials are also hitting new lows. some of the engine companies like cummins and paccar. owens illinois, another one that's in -- among the new lows groups. if you want to know how difficult it is to be in the commodity business, anglo-american is in the big commodity businesses.

they're in the coal business, the platinum business, iron-ore business. they announce they're cutting their dividend. they're eliminating their dif depped at least for the time being and selling assets. the important thing here is they are in those businesses that are most affected. if you look at what they're doing here, about one-fourth of their business is the coal business. one-fourth is platinum. one-fourth is iron ore. the one bright spot is they are the biggest diamond producer in the world. even then in their commentary they said the diamond business is not doing that great, although some are in better shape than the others. three out of four of the businesses are in certainly a recession and arguably a depression. anything in that sector right now, of course, a terrible time. you saw that awful angelo-american chart. right now we're moving up here. we're only down 4 points. we could go positive in the next couple of minutes. >> first up this morning, republican frontrunner donald trump once again getting headlines after calling for a ban on muslims entering the u.s. this comes as many in both tech and government now confront the

question about how to handle terrorism and social media. senator feinstein could introduce a bill requiring social media platforms to alert federal officials about terrorist activity. google chairman said we should target social accounts for terrorist groups like the islamic state and remove videos before they spread. another thing he talks about the difficulty of rying to shut down isis accounts or pro-isis accounts before new ones pop up. in some cases they pop up hundreds of times and even celebrate the hundredth new account by sending pictures of birthday cakes. >> i feel that some of the voices are becoming unhinged here. we mentioned trump, this idea for certain religions entering the country. he also said about calling up bill gates and shutting off the internet in some of these cases. we really need to get people who understand technology and know what they're talking about getting together with policy

people to figure out what to do here. you can't call up bill gates and shut off the internet. >> he makes the point. look, technology does not run itself. we're still in control of this. what do you think the immediate policy proposals might be? >> here's what we have to remember, carl. whatever the policy proposals are up front, there's -- this is all going to happen behind the scenes in terms of negotiations. the tech companies and social media sites, they're already trying to police. they do believe it's a slippery slope with free speech, but there's going to be a middle ground of where government and companies are going to work together, but it's not going to be in the headlines. it's not going to be in the bills. it's going to be in sort of the back room negotiations.

>> it could be monitoring people's accounts in real-time and alerting government officials to certain things. there are all kinds of ways that that could be used similar to concerns after the patriot act had been on the books for a while. how much are people in tech talking about the longer term implications of policy that is are created in moments of -- >> no doubt this is a big determine for facebook, for google. they see a real reputational risk in things like the snowden incidents and the continuing discussion. their users don't like it. they believe. now, they say they have data on this. of course, you know, that could be up for debate. maybe you could argue that users would love them to be more pro active. john, this reminds me of the encryption debate that the obama administration backed off of. i was in london last week, and it's still raging there.

the question of whether services should be allowed to have end to end encryption that make it impossible for government agencies to top some of those conversations, i think it's important to note that the u.s. has backed away from that under pressure from these tech companies and i think that's important context for the new terrorism debate as well. >> is it your sense, john, that the engineering is capable of doing what we want these platforms to do? i mean, is this fixable? if we manage to come to some agreements is it fixable? >> with an astericks. that is you can do all kinds of things in monitoring, but you are doing it to the entire platform in order to adjust for a really small bad actor segment of the population. do you end up ruining the platform longer term in order to deal with a problem that could be dealt with perhaps more surgically? i think tech companies are cautious about letting their policies and their product road map be set by political pressure which might not be as sober as

it needs to be. >> it's a good way to put it. a new report from the information, jessica, says that this year's lackluster tech ipo market now hurting employees of start-ups. many who accept stock options as part of their pay. stock options typically about 10 years old and stocks do, of course, have time to rise over time, but a great piece. your team calculates at least 25% of etsy's options are under water. square it's 19. box, 15. talk more about this grate piece you had today. >> thanks, carl. you reported the stats. these are sizable amounts under water. prices can go up. these are held for long-term. this creates a lot of challenges for the company and for management as well. in morale, in managing employees. particularly as the tech market is getting quite competitive. there are a lot of options out there. we hear this is definitely an issue on the minds of a lot of

management teams. employees obviously concerned, though i think there is still the conviction that the big companies are going to weather through whatever cycle changes we have, but something we're watching very closely, particularly as we're trying to understand how aggressive valuations have been. >> talk more about the impact that you expect. companies that either have a whole lot of cash or a whole lot of control from the executives to the top, they could always reprice options. it seems to me if the population feels like these companies have great prospects for the future, and this is just temporary, there can be an advantage to the stock being down. hey, people didn't want to join the company when the stock was high because they figured there wasn't much up side. if you believe in the future of etsy, maybe now is the time to join. who does the balance of power shift to in the competition for talent in this kind of environment where you have options where you have reported they are? >> the competition is so fierce

and escalating that i think it could be a slippery slope. the talent crunch is severe. you could sell a story to someone to hold out and that there's going to be a lot of up side, but that person is going to have a lot of other options. uber is sucking talent every day. we hear it in the valley. i think it's going to be a tricky period to navigate through. plenty of companies have done it. facebook pre-ipo had down rounds, had periods where they weathered through this. the good ones always get through it. the bad ones are going to have a shake-out. >> yeah. for facebook it's a long way. since the low 20s. i remember that. jessica, it's great having you. thanks again. >> thank you, carl. >> jessica lessen with "the information." when we come back, more originals coming from netflix at early netflix investor will tell us from he is worried about costs going higher over time. plus, an early review of

alphabet. a top analyst will tell us why he is upping his price target by more than $100. we'll get another check on the markets as pasani said wrerl. the session low is down 220 or so on the dow. we're now down 83. s&p once again positive for the year at 2070. we're back in a minute. no matter how fast the markets change, at t. rowe price, our disciplined investment approach remains. we ask questions here. look for risks there. and search for opportunity everywhere. global markets may be uncertain. but you can feel confident in our investment experience... ... around the world. call a t. rowe price investment specialist, or your advisor... ...and see how we can help you find global opportunity. t. rowe price. invest with confidence.

shares of netflix after falling flat after concerns about increasing cost pressures from global licensing deals.

obviously still the s&p leader this year. it's up nearly 160%. facing some new pressure, though, from amazon's rival streaming service and starting today amazon will let prime users add networks like showtime and stars to their subscription. first time stars is being offered outside a traditional tv bundle. joining us this morning is foundation capital's general partner paul holland, foundation, of course, led netflix's series c back in 1999. paul, it's good to have you back. good morning. >> good morning. thanks for having me back. >> the stock chart would suggest they're going to get the benefit of the doubt here in the early going, but when it comes to cost, what do you think investors are reasonably prepared for? >> i think you have to kind of step back a little bit and try to understand the landscape of what's going on with a company like a netflix. first, there's really two things to pay attention to here. one is content. it started with house of cards, which was just amazing, but it's just going on and on and on. shows like narcos. very exciting documentary called

maiden trip that i referred to you guys. i was referred by a high level source at the company to that particular one. chelsea handler has hey new series of documentaries coming out. that's coming out in the netflix brand. lots of very interesting original content. on top of that paired with the best management team in american business. in fact, if i dare say so. it's the golden state warriors of american management that we got over at netflix today. >> they're 22-0. maybe not 22-0. maybe 20-2. >> you just gave me the stats on that. content is a big deal. they're making some very, very smart deals. they've been doing it for years. they did it before people realized they were doing it, and i think they're going to see the benefit of that for quite a long time. >> paul, one of the issues, though, is the nature of these licensing deals whether they're local to the u.s. or whether they're global. netflix needs global content as international expansion becomes an increasingly important part of their strategy.

my question is it seems to make sure if they're spending on content if they can make that much more money based on spending on that content. is that what's going to happen here? can they charge enough for 4k streaming? will they get enough benefit in the immediate wrum term from international growth to justify this expense? >> well, so far from what i have seen in published reports, the international roll-out has been fantastic for the company. i have no reason to believe that that's going to change any time soon. if we think about it this way, think about what mark zuckerburg talks about with facebook, right? they've just passed the billion users on the way to the next billion users. now, how many of those people are going to want to have content delivered on all their devices, the various kinds as the world becomes wealthier and as more and more people enter the middle class. netflix has a very large market in which to play. i'm sure they've structured these deals at a very, very smart way. folks like ted, cindy hollands, reid hastings, the team at netflix. very smart people.

i have no reason to believe that they're not going to continue to knock down these successes over and over again, but i do think you're on to the right track. international is going to be an increasing part of any american based wreed company's business, and netflix starts with an incredible base here, and i have no reason to believe that they'll do anything other than be successful. >> i'll tell you within thing, paul, they're going -- they already have learned sort of what we've known in the cable business and the programming business for a long time, and that is that hits are hard to come by, right? you got to have a big one to make up for all the losers you were bound to have. >> yes. it's a lot like the venture capital business, for example. >> yeah. we're going to find out how good the programming is and they've already, as you said, had a lot of success to show for it so far. paul, thanks a lot. >> they do. >> paul holland from foundation capital. of course, netflix still the big gainer of the year. >> indeed. speaking of big names speaking at business insiders ignition

conference today, including comcast ceo ryan roberts, our boss, since comcast owns nbc universal, and julia joins us with highlights. julia. >> hi, john. that's right. comcast brian roberts, the big keynote here at business insider ignition this morning. showcasing comcast's latest video interface for the audience here in light of questions of cord cutting. he is addressing what he called a dilemma. while its business focus is offering bundles, it doesn't want to be stuck only with them. >> a big part of what we've been trying to do is offer new products that don't have the big bundle like stream, like, you know, xfiny plus or broadband plus hbo go and other products like that with broadcast and not have a one size fits all model. >> roberts defended the value of advertising on traditional

linear television saying that even if the number of eyeballs is shrinking, you still have the most eyeballs on live linear tv when it's the place to go to say advertise a movie opening the next day. roberts also talked about how comcast is working to maximize the value of its content by offering more of that content on demand to protect rather than cannibalize its core business. >> there's a conversation that's constantly evolving of how can we give more value and at the same time not completely eviscerate a revenue, that is helping, as you said, pay for the cost of producing that content. >> i'll be here reporting from the ignition summit for the rest of the day today. next up we have verizon ceo lowell mcadam coming up on fast money halftime report. it will be interesting to see what he says about their investments in video. >> yes, indeed. thank you, julia. up next, stocks bouncing back from this morning's low. right now let's see the dow is down about 70 points. it's been close to break even.

the next big cat les for today's session, of course, the close in europe. we'll bring that to you live when "squawk alley" comes right back.

>> let's count you down to the close. of course, a lot of red as we've seen here all morning. stocks are racing to their gains earlier for monday. falling in reaction to some weak export data from china. obviously, the lower commodity price. a rough day for mining stocks. anglo america cutting 85,000 jobs as part of a restructuring. take a look at the euro, of course. the e.u. statistics agency saying that growth slowed to .3 in the third quarter. that was essentially in line with expectations. a lot of volatility continues in the international markets, and obviously here in the u.s. today. we were down 240 or so. dow down about 90 today. dale winter, portfolio manager for the global equity team at

wells fargo asset management joins us at post nine. it's good to have you. good morning. >> good morning. >> you like europe relative to everything else. >> yes, we do. we're constructed on europe for three real reasons. better valuations, better earnings, and better qe compared to the u.s. better valuations, core euro zone trading at 1.5 times book. u.s. is tragt at 2.5 times book. we have earnings tail winds from the three c's. lower credit costs, lower currencies, and lower commodities. also, earnings in europe are 30% below their prior peak. u.s. earnings are 30% above their prior peak, and finally, the last piece of the puzzle is ongoing qe, not the end of we that we have in the u.s. constructive on wrurp. >> how do you fold in the unknowns the degree to which a serious dispute over refugee policy slows down growth, creates barriers where in an area that was meant to take barriers down. >> yes. the immigration crisis is a

serious social issue right now. we do not think it's a driver of stock prices. what we are looking at in terms of cyclical recovery is what we call self-help cyclical stories. not totally dependent on the duration on managing the economic cycle. it's just beginning to perform. they have self-help in terms of cost cutting and/or portfolio reshaping that can boost margins and profits while we wait for the top line and the cycle to come through. >> example. >> we have a small cap holding in germany called rinematal. it has auto components and defense. it's doing cost cutting. defense went profitable last quarter. very importantly, in terms of geopolitical risk, germany only spends 1.3% of gdp on defense. the minimum requirement is 2%. german defense spending is increasing. the company will be a beneficiary. >> what is your outlook on emerging markets and how does that play into your bullishness on europe, which often has the impact from what's going on in those markets?

>> yes. so emerging markets, we view as value and value traps. we've been saying this for the last two years. you actually believe in having overweight in chinese and hong kong equities. that's where value is. we think brazil is a value trap. they both trade on one times book value. there are more tools for stimulus in china than there are in brazil. fiscal stimulus, structural reforms in china. in brazil they can't have fiscal stimulus because the deficit is too high and there's no structural reforms. in terms of the view of slowing emerging markets in china for europe, people have to understand also that, for example, exports to china are only 10% of total exports for germany. we're talking about domestic recovery in europe. not exposure to a slowly china. that's why we have domestic self-help cyclicals in europe. >> when you see 13 months of contraction in china imports, the trade taka, does it not make you question the thesis of overwaiting?

>> it doesn't because we know and it's been telegraphed there's a transition happening in the chinese economy from investment to consumption and services. in the summer you saw the manufacturing pmi for china go into 47 contracting. in the same month the services pmi was 53. expanding. that economy is going through a very long-term transition from investment to services. it's going to be a soft landing. not a hard landing, and that's the opportunity. >> it's not going to squeeze the countries around china because i think they're seeing a bigger impact from china slowdown than china is because they're not spending as much with the original partners. >> yes. it's about countries and sectors. we are actually underweight canada and underweight australia. it's their exposure to commodities and particularly exports for an example. much higher to china. maybe 30%. we're underweight those countries to a slowing chinese

economy. >> a guy whose last name is winner. i'm sure you've heard that before. >> once or twice before. >> bullish on alphabet. a top analyst will tell us why he is upping his price target by more than $100 on that stock. a strong black friday for microsoft and xbox with console sales up 22% year-over-year. a man who launched the original xbox will break down the console battle heavy into the end of the we're. squawk alley will be right back. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

cto everything from surfers welcomingto seals.ul home attracting visitors from around the world, around the year. along the coast, protected areas are set aside to preserve a fragile community of animals and plants. to protect these natural wonders, here's what to know before you go. stay at least 300 feet away from seals. this is their home. don't touch marine life in tide pools. take away your trash and your happy memories. always enjoy and protect our marine habitats.

good morning. i'm sue herrera. here is your cnbc news update this hour. secretary of state john kerry speaking about the threat to the oceans while at the paris conference on climate change. he specifically spoke out about chemical runoff that causes dead zones in the oceans and mocked those that deny climate change. the u.n. refugee agency says donald trump's call for a ban on muslims entering the united states could put a u.n. plan to resettle syrian refugees here at risk. an agency spokesperson says the u.s. takes in more refugees through resettlement every year than any other country in the world. two train accidents in india have claimed at least 14 lives. a speeding train rammed into an suv at a railroad crossing in eastern india killing ought 14 in the vehicle, including five children. then two trains collided near the capital killing the driver of one of those trains. at least 50 people were injured

in that incident. and pope francis leading the jubilee of mercy mass today at the vatican. he celebrated the special mass in st. peters square to formally open the refusal use of tenderness. a holy year dedicate to showing the church's mercyful side. that's your cnbc news update this hour. let's go back to downtown to "squawk alley," and, john, over to you. >> a heated black friday. playstation 4, microsoft's xbox one today launching a virtual shopping platform. it lets gamers try out outfits and purchase them. both shares of sony and microsoft now neck and neck this year. could virtual shopping be a game changer. joining us here at post nine is robbie bach, who is microsoft's chief xbox officer. robbie, i remember when xbox launched it's all about the games. >> sure. >> shopping seems like a little bit of a weird connection to make. identify been playing black ops. now i want a new blouse. how is that going to work? >> i think what you have to

recognize is all these on-line gaming networks, in addition to being gaming sites, which they certainly are, they're also social sites. they're places where people do the types of things you do on facebook and other types of sites. there's a desire to have people be able to do other things and have other options to interact and shopping certainly is one of the most social things we do. i think it's -- i think it's a logical extension, but game issing always going to be at the core of it. >> whether it alters the actual purchaser or the purchase decision are people going to start buying them to do something other than gaming first and then gaming is kind of like gravy? >> i don't think so. i think the lesson we've learned time and again is people start with gaming, and they start with entertainment as a core activity in their social lives, and then subsequently they can say what else can i do? xbox said, oh, i can watch netflix. now you are looking at other things at in the social community. >> across all of technology, all of social. we talked about these being social experiences.

snoo sure. >> about how to track down terrorist conversations before they result in something tragic. if you have a sense of how serious an issue this is on gaming platforms, is that a scenario people have thrown out there that's probably not happening, or is it something that these companies need to focus in on? >> i don't know whether it's happening or not. i'm not close enough to that. i will say this. whatever type of social activity happens in the real community happens in the virtual community. certainly when i was working on xbox live and working on the business, we paid attention to behavior on the site. we weren't looking at that time at terrorist behavior, but we were looking at people who were cheating, people with foul language, people using sexual imabi ima imagery, those types of things. they have to pay attention to that type of behavior and determine what's appropriate and not appropriate and have policy that is deal with those issues. >> it's probably going to be easier in some ways to do on gaming platforms because there's already expectation that it's being policed, right? >> yeah. i think that's probably true.

i think people may pay more attention in that gaming environment because it is something gamers expect. gamers are looking -- part of the reason they're there is they get this sort of disneyworld experience of a gaming environment that's pure. they want to have a good experience, and they want people to not cheat and do other things. >> i'm curious to know what your fey tai is on the title that is are out there right now and especially whether or not a single shooter title takes a hit eventually because of what we're going through? >> if you look at the gaming market right now, there has never been a better time to be at the gaming market. console sales are way up. that's a sony statement and a microsoft statement both year on year and life to date. the big franchise titles are huge this holiday. there's five or six titles. halo, call of duty. >> although this one is not getting the best reviews, the one that we're running on the monitor right now. >> yeah. there's a whole bunch of titles, though, that are selling well, and because they're franchises, reviews matter. people also want to play them

because they're storied franchise, and i think you're going to see a really solid very strong holiday season in the gaming market, both on the console side and the gaming side. let's not forget, mobile gaming is very hot. pc gaming has never been better. it's a good time to be in that market. >> what do you think is next? there's all this talk about virtual reality in gaming. also about reality. it kind of seems like to me the kinect experience, the wii experience, there was something sort of faddish about those. these hot games we're talking about, people are waving their arms in front of the tv to play them. they have the old-fashioned controller, right? >> i think what has happened with those types of experiences, they weren't complete enough. they were sort of a partial virtual reality. what people are waiting for and what's in development is this rich augmented and virtual reality system. i think those are going to change gaming over the next three, four, five years. i also think it's important for your cnbc audience, that's going to change other parts of business as well. it's a rich simulation environment.

think about shopping. i'm not talking about an xbox live. i'm just talking about virtual things you can do that could be very valuable in a business context. i think that's going to be the obvious choice, but there are other places that are going to be very rich and augmented reality as well. >> last one from me, is the twitch phenomenon for real? is it long lasting? >> i think it is. i think there's a performance aspect to it. again, video games entertainment. people want to go to concerts. what's live gaming? an entertainment event. the fact that they're playing video games sort of the back drop for a social experience that people have to go to. i think it's -- it is think it is real. >> that and esports. an amazing time to be gaming. thanks for your insight. when we come back this morning, a lot more to talk about. stocks continue to recover from this morning's lows, although it's been uneven. dow down 142, and the s&p just barely in the green for the

year. rick santelli, what are you watching? >> i am watching reams of data here. you know, we just finished a one month bill. one week bill, 52-week bill, and the yields are high compared to other bill auctions. on the year, bill, 74 basis points. going through a lot of paper. looks to me like a highest yield and a one year bill auction since around thanksgiving in 2008. what does that mean? we'll tell you after the break.

>> at the top of the hour, the commodity crush. how they're playing energies. your playbook on what to buy and what you should be avoiding in the seconder. all-star tech analyst will be swroinks with his top picks. plus, what's on his radar for 2016 and a cnbc exclusive. don't miss this. an interview with verizon ceo lowell mcadam. we'll ask him about speculation over yahoo and a lot more. that's all coming up on the halftime report. for now, back to you. >> thanks so much. let's hop over to chicago and check in with rick santelli and get the santelli exchange. >> hi, carl. listen, we're going in a completely different direction than i thought we would go about ten minutes ago. the reason is because at the bottom of the hour we had the results. for normal weekly auctions. you know, we do bill auctions every week and the results were somewhat extraordinary, yes, but maybe not to some is people.

let's operate under the assumption that they'll raise rates. one nor the wreeld a little over 2 basis points. that's the highest yield in the bill auction. this sits about halloween of 2013. the year bill, and obviously there's a lot more eyes most likely focused on the one year bill. it had a rayed rate of 74 basis points and according to my notes, and i looked at them about 40 times, i couldn't find a higher yeel yield in an auction since thanksgiving of 2008. it isn't shock, but yet it really underscores the dynamic as simple as it might be that helps us kind of flush in all the issues of the day. you rnl, when we talk credit bubbles and i talked to all my sources, they basically have several they're paying close attention to, and right now i'm going to give them to you not in the order that i want to frame it out ultimately. you know, student loans. some of the auto loans.

it was the third largest month over month drop them they had. i did all this yesterday. a little over 400 billion to slightly less than 3.5 trillion. now everything makes sense. you look at the negative rates in the short end of europe, you look at what's going on in the short end here after the auction in anticipation of fed normalization, you look at our yield curves, and you start to get a picture that a lot of things that we see in the marketplace of late are maybe a moderate volume, a lot of trades that really key off of small phrases. consider what this says. think about china, and take a step back and think about it in the macro. my guess is the volume will be really big, and what this tells

me is most likely the volatility that we've seen on light volume will be put to shame. john, back to you. >> here red light latest on the reports about 30 boston college students falling ill after eating at a chipolte in that city. a spokesman telling me "we believe that it's likely a noro virus which alls seems to be the direction the officials in boston are moving. the company noting there had been no confirmed cases of e. coli in the state of massachusetts. at least thus far. by way of background, norovirus is very contagious. you can get it from infected persons, contaminated food and surfaces. it affects 20 million americans each year. still the stock continuing to take a hit. trading lower. again, today. here in midtown manhattan we caught up with consumers who, though aware of the e. coli outbreak in other chipolte

restaurants in other parts of the country, are continuing to hit up the burr ito chain for their meals. >> have you heard about the e. coli infection that's -- >> there's one in my office building, so i'm there. >> it hasn't affected you going there for lunch or dinner? >> i get some jokes in the office about it, no, it hasn't affected me. >> it changed my lunch a couple of weeks ago. i was going to go there probably like last week, wednesday, and the person i was with is, like, oh, did you hear about they had something wrong with their food? i was, like, oh, maybe i'll have a salad. >> so he talked about having a salad, but he was actually considering going to chipolte today. if you take a look at the chipolte behind me, there are folks going in there to get lunch. they're not particularly busy, but we're a little before the lunch rush hour. meantime, health officials continue to investigate or look into this situation. wroefr he all we've seen nine states confirmed with e. coli tied to chipolt. 52 people affected.

still, no word on what food source caused that outbreak. back over to you. >> all right. thanks, morgan, for keeping us updated on that. and up next, bullish on alphabet. a top analyst is going to tell us why he is upping his price target ahead of the new we're. squawk alley will be right back.

it's ought out with an ultra

billish -- helping the private price target to dmrars 915 per share with a buy rating and ever core's internet analyst joins us now here at post nine to explain why. ken, security is fascinating. google has its iron in so many different fires or so many irons in the fire. i don't know which. lots going on. amazon, facebook, microsoft and the cloud. google is trying to relaunch its cloud strategy. siri now has more search function on the phone that's not going through google. why so bullish on google? >> i think you made a good point. there are others who are actually moving into search, and i think their ability to host a tremendous amount of data is allowing them to do that. i think when you look at google's lead within search i still feel that there's a strong advantage there, and i think part of the call that we were making is not, though, what's happening just within search. it's also looking at google's other businesses. i think as we started to anticipate the disclosure that's coming in the fourth quarter and

in terms of them moving over the other bets, it raised questions for us on the core side in terms of, you know, where is youtube right now? what do we think it's scaling at? what would be the value for youtube? similar question for their display business. as we started to separate out those high growth areas, we came to the conclusion that the core business for google search is still growing in the low teens, and if we apply a market multiple to that, we see, you know, dramatic upside from where we think the stock currently trades, and that's not really including things like maps and android and chrome and cloud and a lot of these businesses that will still be in the core once google does make the additional disclosures. >> does that mean we've underestimated the search business for everyone or just for google? >> i think that search -- search is -- the ability for you to get your question answered as quickly as possible is captive. facebook represents something different. wifs a league last night at our holiday party, and he was

explaining to a professor that says you get as much pleasure as eating sugar for some primates as sharing it, right? facebook represents that primitive drive. the ability it both, you know, attain and also share. i think with google from google's standpoint right now, it's a lot of -- it's a lot of take in terms of what you need, but there's certainly extending that into many, many areas, and i think it's impressive to watch. >> are you as worried about netflix as some have become over the last couple of days from the content cost? do you view that as an investment that's going to yield benefits? >> we have been concerned about netflix for and time, and that's not been good from a stock cost standpoint, but i still feel the work is there. i think the ability to connect content into these platforms is becoming much easier. it will give more choice to content providers. it will give more choice to consumers. i think how that content ultimately gets packaged and structured across these different platforms will mean that you'll have to continue to

spend a lot on content if that's what your end goal is. >> you think you end up being a better programming because you know imperically what your users watch? >> when you start to look at the other platforms, amazon, google, facebook, and others, they have a lot of data i think on what the consumer likes and wants to watch. the question is how do you help these content providers reach a shifted audience and really yield optimize in terms of -- >> to put a different point on it, is netflix going to get the same kind of scale benefit from learning that google has gotten from search where others that might have great content, but they're not going to be as smart as netflix? >> i think from an original programming standpoint, i would think netflix would have the edge there, but when i think -- when it comes to monotizing that captivity and ultimately allowing that large globalized audience to be reached by a content provider, i would think

google, apple, you know, amazon and others are going to provide a very compelling offering to those existing and future content providers. >> great insight as always. >> thank you. my pleasure. >> thanks so much. >> when we come back, shares of go pro down almost 72% this year. now some new competition. we'll explain that after the break.

seemingly out of nowhere apple is launching its first battery case for the iphone 6s. the new case will nearly double your battery life, increasing talk time up to 25 hours and internet use up to 18 hours. the case is available on apple's website for $99, and i've always said people underestimate the degree to which these after market products drive earnings. it's a big chunk of pie. >> they do. it kind of concerns me that apple is jumping further into accessories now. they've tended to leave that business alone. it makes me wonder if they're trying to get more share of wallet on each iphone purchase

perhaps because growth is coming out of that from the holiday season. we'll see. >> in the meantime, shares of gopro in the green today. still having a tough time lately. down about 53% in the last three months. still below that ipo price of $24. this as the action camera maker is also facing new competition as ye enters the u.s. market just in time for the holiday. they had been distributing their product in china. the bargain price camera is gopro light with high-end features. now exclusively available through amazon. it's got a sony sensor in it. it's got the chip in it also. previously you could only get this in china. the camera has wifi and blue tooth and allows to you control the camera and share content through the app on the phone. see, i've got my old gopro here, and i've also got the yi. got to zoom in to tell which is which. the yi is the white one on top. on photos the yi photos actually kind of look better than the

gopro's. this is a generation back on the gopro, granted. the gopro is on top. i couldn't even tell the difference looking at the camera which one was on top and bottom. >> interestingly, i also saw the journal had a piece today calling it a value trap going into 2016. at the same time launching a channel on amazon fire tv which is sort of the whole idea it's been their long call as to make it curated content through the device. >> yeah. >> you know, carl, we've watched these things for a while. i watched hardware makers. go pro needs software. they need software that is unique that lets you get the images out of the camera. they get to do that better than folks like yi because, hey, they're coming for this company, and they're coming for their margins. sfroo woodman has called it that seamless experience. you don't want to have to hook it up, download. you just want the information, the images out of the camera and on to your desk top where you can use a go pro suite to start editing. meantime, market has demonstrated its willingness to move intraday. we're down 131. as you pointed out earlier, had

a bit of a spike. oil continues to be the driver. had gone positive for a brief part of the session. currently still below 38 or so. that's going to be one of the key things to watch throughout the afternoon session now that europe is closed. does it for us here on the floor. let's go back to post nine. sarah eisen and the half. twok the halftime report. i am sarah eisen. let's meet the starting lineup. jim levin that will, stephanie link, john and pete. luck where i me. our game plan looks like this. tired bull. bank of america's chief equity strategist on where she's keeping her expectations pretty low for the new year. verizon exclusive. ceo lowell mcadam will be joining us to talk carrier wars and speculation about a possible deal for yahoo. first, we start with stocks. well off session lows. dow s&p and nasdaq, though, still lower. the dow is down 138. s&