>> good morning. 8:00 a.m. at space ex head waters. it's 11:00 a.m. on wall street, and squawk alley is live. ♪ ♪ welcome to "squawk alley" for a tuesday. as always, myself, swron, kayla at post nine. swroinks from out west it's john mcmalmee. a lot to work with today. first off, a major success for elan musk's space ex.

the company's falcon nine rocket safely landing in florida after delivering 11 satellites to orbit. it was spacex's first flight since a rocket failed shortly after lift swrof back in june. after the mission june bezos tweeted "congrats spacex on landing falcon's suborbital booster stage. welcome to the club." it's like we're living in the future here, roger. despite what's happened this summer, it's a reminder that commercial space is really a long game. >> i just think this is incredibly exciting. what's happened with spacex really matters. i mean, this is not a little deal. they've just done a successful landing of a booster that can be reused, which, you know, do that a dozen times, get really practiced at it, and suddenly you're going to change the cost of space travel really dramatically. to me that's just the source of optimism and, you know, i just

think it's really exciting that we're -- we have something to feel good about in this day and age when fear has begun -- to have really cool news like this is just a pleasant change. >> roger, back when blue origin landed its rocket we became familiar with the debate between orbital and suborbital. how significant is it to have 11 satellites now in orbit that will be monitoring their time transportation for companies. is that in and of itself newswort newsworthy? >> i think the whole thing is cool because we're looking at segmentation of space as a business. right? historically we've had one provider in the united states, nasa, with essentially one mission at a time. now ewe got jeff bezos who is looking at essentially a tourist business, and you've got elan musk looking at really are aedicly altering the cost proposition of commercial satellite launch. to me i think it's profoundly

important because to the extent that elan musk's pattern of landing things and reusing them really does work, i think it means we're going to get all these benefits we've had from gps and from satellite-based video stuff at much, much lower prices and much more widely disbursed around the world. to me, huge deal. just a huge deal. >> huge deal. don't want to take anything away from this because i think it's incredibly important. a lot of people worked really hard on this. it's interesting to me. i keep hearing about the 1960s when there was a sense of national accomplishment when things like this happened, and i'm not sure we feel that anymore. around what bezos accomplished, what musk has accomplished. now we've got this billionaire philanthropy that goes back to earlier last century. i wonder what that means. should we feel a sense of

national accomplishment? does elan musk feel like this is an american accomplishment or an entrepreneurial accomplishment that knows no national borders? >> to me it's very much an american accomplishment. let's put it this way. we're entitled to look at it that way, and that's certainly how i'm looking at it. this is a collaboration. remember, spacex can't do this entirely on its own. it had to use nasa's facilities at cape canaveral, and that's why this is so cool. there is a cooperation between the government and industry right now to leverage the benefits of what the entrepreneurial economy can do. on top of this infrastructure that we already have. i'm personally incredibly positive about it. i think as a country we should look at this and take great joy in it and remembering that it's only going to get better from here. i think they're going to do increasingly exciting things. when we have a series of them happening and it starts to be a regular thing, i think maybe people's enthusiasm will

increase. >> really quickly here, roger, to what degree have you considered how to invest in this on your own or the weighs in which viewers might be able to do the same? >> at the moment i'm just enjoying the entertainment value of it. when they figure it out, carl, you will be the first to hear. >> i'm next, roger. google said to be in talks with ford for a partnership on self-driving cars. ford would apparently help build the cars using google's technology. both sides are said to have been in talks for quite a while, and they could announce the partnership as soon as next month at ces. shares of both ford and google in the green this morning. again, another one here, roger, where we're talking about a big new effort in transportation. >> is this not a great day, right? i mean, what a great day to be alive. what a great day to be an american. i look at this thing. i can't see any angle of this that isn't positive. you know, again, we live in a world where there's so much to be worried about or at least so many people telling us to be worried about everything. all of a sudden you get two things like this in completely -- well, yes, they're

related businesses because they're both transportation, but they are obviously two very different parts of the transportation business, and both of them, i think, are big steps forward. i think the notion that google can now use the existing infrastructure of one of the world's most successful automobile companies is hugely positive. what i really love now is the engineers have figured out that, oh, my gosh, people don't actually drive according to the rules, right? we have to make these cars adapt to how people who are driving cars actually work as opposed to, you know, whatever it was that the engineers thought. to me i thought those are all really important steps forward because stuff is becoming real. >> perhaps one negative aspect of this, john, is that ford had existing partners in its smart mobility franchise. one of those was mobilize. citron research pointed out that mobile eye was one of those partners. stocks down 2%. what does this mean for ford going forward? is it more beneficial for ford? for google?

both? neither? >> i think that ford has to be careful about becoming commodity hardware in this situation. we've seen that happen with pc's and servers. it's conceivable that it could happen in cars. a separate software maker gets a disproportionate value. we'll see how this shakes out business-wise. mobile eye is an important component maker as far as the cameras that they make that enable the autonomous driving experience. google has that, and software that they add in as well, but i think the overall impact on the car business remains to be seen. you don't want -- if you are a car company -- to just end u7 cranking out hunks of metal that end up being carriers of somebody else's software. >> let me push back on this slightly. i think doing that would make a lot more sense than not participating at all and getting completely run over by this stuff. i think if you are ford, this is a way of spreading your bets and making sure that you participate

in whatever wins. i suspect at least for a little while players like ford have a chance to work with more than one intellectual property holder, and in that -- if they're clever about that, they may be able to carve themselves out a nice piece. >> you want to be samsung. you don't want to be htc. right? the first ones to do an android phone. >> you would rather be apple than either one of those guys. i totally get that. >> i'm thinking back to the remarks at code last summer where they asked him about cars, and they clearly don't want to do this alone. the addition of ford is a telling sign. meantime -- >> big deal for google. >> if are you looking to do some last minute shopping, amazon has an app for that. our mary thompson is live at amaz amazon's prime now hub in manhattan. good morning, mary. >> hey there, carl. you know, amazon prime now customers in 20 cities will be able to get those last minute gifts delivered to them by 11:59 p.m. on christmas eve. amazon prime now, of course, is an app-based service for amazon

prime customers that offers free two-hour delivery and for the very, very last minute shoppers, it offers one-hour delivery for $7.99. introduced last year, prime now is the most popular sellers typically are household basics, bottled water, and in portland, oregon, an organic spinach. amazon prime now is worldwide director stephanie landry says demand changes. >> heading up to the holiday times, we've seen a shift with people buying more holiday stuff, so toys, lots of board games, consumer electronics, more things for the holidays lately. >> this 40,000 square foot facility in manhattan serves prime now clients at new york city and parts of brooklyn. it operates in much the same way a typical amazon warehouse does. say for the faster turnover to keep pace with customer demands, and the old school shout-out that happens when a one-hour order is received. this should notify the troops to

move more quickly. it's a pricey service to operate, but the cost is worth it to keep customers happy. prime now also a sign of the time of where shopping is going. this year mobile traffic accounted for 67% of all on-line traffic or at least has so far, and mobile sales are up 26% year-over-year as more shoppers phone it in. back to you. >> good stuff, mary. by the way, speaking of amazon, this new note says in 2015 amazon is expected to account for more than half of all growth in e-commerce. they also estimate that prime members account for about 25% of u.s. households and could grow to 50 by 2020. since black friday the stock has struggled, though. 11 s&p names have out gained amazon since that time, including whole foods, kroger, dollar general. i guess that's not too much of a surprise if you have gains like that, you might cash some chips. >> yeah. i think realistically amazon had that giant run when the news

came out about aws is and the fact that it really built amazon web services to not only a huge business, but a very profitable one, and so i think, you know, if you will, amazon, you would rather trade as aws with the margin structure and the kind of pe multiple that that's going to get rather than the retailer side. i don't think there's anybody in seattle crying over this. i do know this. i think when the christmas season is settled and done, we'll see that amazon has accounted for just a huge percentage of activity. for a good reason. they do an amazing job at this time. >> it's clear that they represent a large amount of the e-commerce activity, roger, but do you think one-quarter of all u.s. households are prime customers? is that overly optimistic? >> beats me, but i got to tell you, i know in my household, the fact of prime was a game changer of all holiday shopping, and here's the thing. amazon does an amazing job. whatever number they're at now, the quality of the experience

people have this christmas will be reflected in next year's numbers, and as far as i can tell, there have been no glitches this season, so i suspect amazon will come out of this smelling like roses and whatever the percentage is today, it will be higher next year and if you are a shareholder of amazon, you'll feel good about that and way better about aws than the retail business, but you'll feel really good about both sides. >> it is just a crushing advantage that amazon has right now in e-commerce. you think about the logistics network this they built up over the last decade, decade and a half when for the first part of that, everybody was satisfying, oh, that's a terrible idea. look at all the cost. ebay is better. now they have that. nobody else has that. even the bricks and mortar players like wal-mart that have physical infrastructure don't have it organized in the way to really compete with amazon in this mobile era. we'll see how fast they run, but i think you got to be terrified if you are a retailer going up against amazon in this kind of environment because this season

is a prime example. if you are looking to send gifts to somebody, you want to get them there by christmas guaranteed. why would you go anywhere else? >> you're not even breathing hard yet. right? you still get two days to get this done. if you live in new york, my god, you've got until absolutely the last minute. you can just throw things down the chimney. >> unbelievable. stock stim still has a shot posterior teshlly by year end to outpace netflix if the trend continues. still a few days left to go. roger, it's good to see you. happy holidays if we don't see you before then. >> to you too. have a wonderful one. let's have a wonderful year in 2016. >> great idea. meanwhile, let's get a check in on the markets. we're off of the highs from earlier in the session, but we're still on positive territory. we did see stocks stage a late day rally yesterday on some news out of beijing potentially new levers for growth in the chinese economy. today in the u.s. it's all about oil, which has stabilized and data. we are seeing existing home sales for november fell the most

in five wreerz. certainly the data doesn't look great, but the markets are hanging in there. you can see the dow is up by one-third of 1%, as is the s&p. the nasdaq is up by about .1%. chipolte falling after getting downgraded to neutral at jp morgan. the company, of course, linked to more cases of e. coli in the midwest. we're going to have more on chipolte later on this hour, but the stock is down more than 4%. carl, somewhere p morgan says there's really nothing to like in the in the meantime with this outstanding. >> when we come back this morning, it was apple's app of the year in 2015. it's been downloaded more than ten million times. the ceo of periscope joins us to talk about what was a pretty good year. pair scope's parent company, twitter, continues to struggle. a top analyst will tell us if things may get better in 2016. one of the top luxury watch makers in the world moving into the digital age. what a $9,000 smart watch looks like right here at post nine in a moment.

>> what a year it's been for periscope. competing with the likes of meer cat. although shares of twitter have been havd since then, periscope was recently named apple's app of the we're. what's next for periscope and for live streaming in general?

>> has it resulted in more -- >> any time apple names you app of the year, it's a tremendous amount of attention and visibility on the app store and obviously accolades, twitser. we've been fortunate to be given that designation, and obviously from ray downloads perspective and from a general awareness perspective, it's huge and very impactful. mostly just an honor as developers being in the space and being called app of the we're. it feels pretty great. it's a nice way to end the year. >> give us some of the latest user stats. how is the growth going? we announced an update around downloads and around time -- we'll update those numbers soon officially, but we've well over doubled all the metric that is we care most about. things are going really, really well. >> ewe doubled then since the last update, you're saying? >> since the last update, wrau.

from a metrics perspective, it continues to bloi us away, but the other thing we care a lot about, that you and i have talked about on the show is the diversity in the spectrum of content that we see every day. every day we continue to see types of content from people that we -- that not only makes us feel like we're fulfilling that original vision, but the sense of how people are using the product around the world every day. >> it's safe to say now, i think, that there are millions upon millions of downloaded, but when you log into the app, it shows you a map of everybody that's use it in the region and at any given time i looked at it this morning, it's just about a couple dozen people on each major city. how do you get those numbers up, and how do you go about growing the number of people who find value in using periscope? >> actually there's two ways that you can discover content on periscope in the app. there's the list and then there's the map. what the map does is it shows you a collection of -- at every zoom level when you zoom in san francisco or if you zoom in

further into the city, the map always reloads a total of 250 broadcasts both live and replay. at any given point there are thousands of broadcast live around the world that have location shared and, again, that's a -- you have to share location. just because you're zooming in, let's say, to a certain level of manhattan, you'll only see a maximum of 250, but if you zoom in even further within wrun square or washington square, it will reload data on the top of that. we'll have to keep making sure paris is out there. that's why apple is really amazing for us. you know, it's listed prominently in the app store, and people know more about it. we're really just focused on continuing to build compelling additions to the prublgt. >> when people think back to the evolution of twitter, they often think about when the platform

had its moment, so to speak. a lot of people think of that as the miracle on the hudson where people were just taken aback by the speed and power of twitter. do you think periscope has had that moment yet? >> it's a really good question. it's been such a short period of time. there have been a bumpl of prom independent moments for ushs but it's hard to know in the grand scheme of things that they would be the defining moments, so i think of day one when we first launched, we talked about this last time. there is an unfortunate fire in brooklyn, and just the immediate si through which people were using periscope and one of the ways we thought was really compelling. ie, sharing world events happening around them. whether it was a celebration or some sort of tragedy. we thought the idea of being able to start your own tv station go live and reach an odd

wrens was powerful. that came to light the first day. we've also had other moments that were pivotal at bringing new audiences to periscope. for example, you know, our app recently got discovered, i would say, a month and a half ago in russia, and, you know, as a collection of a politician who used it. there was a boy band who used it. there was a media personality that used it. all within the few days, and the app just exploded in russia, and then over the course of the following weeks continued to explode throughout eastern wrurp. it was this domino affect. it was really fascinating to watch. just looking at the metrics, just literally looking at the map you could see entire cities and countries light up on periscope. that also felt like a pivotal moment, though not necessarily a single broadcast. >> quickly, if you can, any specific plans yet on what to do with the drone patent related? it's a live video streaming. in 2016 do you become more of a platform where other types of video services can use periscope? >> you know, it's a really good

question, and we're fascinated by the idea of allowing more people to broadcast in creative ways, and that can be creatively with your iphone or android with the features we provide you, or it could be given other integrations are other hardware. what i will say is we're not going to be the types to develop every device with every integration ever. we like to do a few things really well. there are a few things that really excite us. i'm not sure we need to be playing in the drone regulation states. that's not really our quagmire to navigate so much as it may be for other companies. we are certainly interested in letting people broadcast what they're doing, what here seeing with the world, but it might have to do with the phone in your pocket, and there might be other devices you want to use. >> it's great having, where you congratulations on the apple thing and an amazing year. we look forward to talking to you more in 2016.

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shares of go pro having a good day today. telling us why. josh. >> well, john. the go pro channel is now valuable on a playstation four and playstation three systems. the app allows millions of gamers to stream go pro content on demand as well as rouz go pro cameras and accessories. playstation joining go pro's line-up of distribution partners that includes xbox, roku, amazon, and virgin america. the partnership coming at a critical time for gopro, you see that stock now down some 70% so far this year. bulls, though, are looking for a reversal in the second quarter of next year as a new camera and

drone they argue ramp up just as year-over-year comparisons ease. kayla, back to you. >> all right. thanks so much. josh lipton out west. speaking of go pro founder nick woodman is spending some serious money. robert frank has that story for us. he will be able to ride the waves on a mega yacht. he bought 180 foot kwaut from the dutch shipbuilder. it will be delivered in 2017. it's expected to cost between $35 million and $40 million. neither woodman would comment on the boat. here are pictures of the type of yacht that woodman is buying. it's not his yacht. it's the type of yacht. it can accommodate 14 guests, has a crew of 12 to 13 people and can do a trans-atlantic trip covering 4,500 nautical miles. perfect for cruising the med or the caribbean. plenty of space in the stern

beach club to house swret skis underwater scooters and lots of other go pro friendly toys. gopro stock has fallen. now, this summer when he bought the boat he was worth over $2 billion. now his share is worth $650 million. at least he got a good deal on the boat. the price of this vote is in euros, so the strong dollar means he is getting a multi-million dollar discount. one consolation for him there. back to you. >> people looking to buy the stock are getting a discount as well. >> right. >> that's the positive way to look at it. >> really interesting. thank you so much. robert frank, back at hq. let's get to europe's close coming up in just about 30 seconds. >> hey, carl. you can almost feel the exodus for christmas in europe. there's no nbc that goes without saying in europe. christmas is the main family holiday, and they stuck around for the fed rate rise in december. you can feel it in many senses of the analyst note and the volume is all the way around.

since he dentally, the day is the day that the european central bank was also due to pause its qe. the bond buying until january the 1st. they friendloaded it. the plan was to front load it into the month prior where we are now. these are some of the stocks that are moving today. some of the commodity stocks, the steel stocks, the oil stocks are higher on the session overall. obviously a lot of them beaten down arguably a time to short cover if that's your gain. you also see some of the banks rising today. just -- very, very few big price moves on the stock 600. these guys kind of stick out. let's just have a look at where we've traded so far for the year. we look to close out. it will be fascinating to see how people justify or rationalize where we've gone. in this country, of course, the s&p 500 is still negative. in europe because of qe on the prospect of qe, you have a massive outperformance that, of course, then closes partly as a result of what happened with china and august, but now the

spread is just 5%. is that worth 60 billion bureaus of buying from europe every month? let's have a look at where we are on the ten-year yields on the bund. there you will see that we're more or less where we started the year as well. how people write this up going into the first week of january. i think we'll be interested. back to you. >> thank you very much. simon hobbs. when we come back, shares of twitter are up today, but still below that ipo price of $26. down 40% for the year. a top analyst will tell us what we might expect in 2016. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts...

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here's your cnbc news update at this hour. three people were killed with at least 700 injured in separate chain reaction collisions involving more than a dozen vehicles on an interstate in southwest arkansas. a truck driver was killed by a vehicle after getting out of his truck to assist the victims. ford is recalling about 313,000 cars in north america because the headlights can go dark. the recall covers four crown victoria and mercury grand marquis from the 2003 to the 2005 model years. it came after safety regulators opened an investigation into the

problem that found 15 crashes and one injury. beijing residents waking up to another day of heavy pollution as the city's smog alert continues. pollution levels are rising to about 20 times the level considered safe by the world health organization. and new research suggest the more couples attempt in vitro fertilization, the better chance they of conceiving. data from more than 100,000 women saying the odds of success continue to increase up to the ninth attempt. that's our cnbc news update for this hour. let's go back to squawk alley. >> thanks so much. shares of twitter are up, but it's been a tough year with the stock down close to 40%. will things get a little better in 2016? jason and analyst with oppenheimer. jason, it's great to have you. >> the performance this year speaks for itself. we did get moments which was supposed to be a big catalyst

for the stock -- how do you see that having had an affect on the company? >> it is a new product. the markets initial reaction was isn't this so 2005? you're effectively humanly cure ating content and choosing when the world is moving to -- i think the market kind of yawned and said this is what you brought this up for. the question is going to be can they get more advertising dollars out of it? >> having more products is one of the keys to getting more advertising dollars. one of the key investors is quoteed in a journal piece about dorsey splitting his time saying that twitter really needs to focus on building products and hiring key talent. the growth while still 28% in

users, you roll that out a year from now. they're going to be the fifth ranked app. if you roll it out another year, they'll be the sixth ranked app. the reality is you have services such as instagram, snap chat that are growing faster. even linkedin is finding a way to grow revenue. how do you get more people using the app? >> there are new ways to figure out and monotize and i imagine it's good at least in the short-term. when will we know if there's enough kind of good real estate for twitter left. we always talk about is there room for a third or fourth player in certain markets. a lot of markets, there's not. like in pc's, in smartphones, in search engines. being third or fourth has not yielded much that's good for investors.

facebook at 14. you know, anyone who does the analysis, you wouldn't criticize the twitter sales. they aren't doing a good job selling. the problem is how do you get more users? one example is if you look at the age group in november, 33% of their users were 18 to 24. it's illegal to monitor users under 18 on the smartphone. we recently hosted a conference call. the focus was another company, but our experts who was 13 to 21 years old, do you use twitter? the older one i have an account i haven't been on in two wreerz. the wrunger one says i have no desire to have a twitter account. how do you bring younger people on to twitter, and how do you compete with what's becoming a very effective market for distribution of information? >> i mean, if you were to -- let's game it out like you said a couple of moments ago where the growth is lackluster

compared to rivals. what takes their place? is it a snap chat world that we graduate to or what? >> it's really some different things. if you think about what twitter has become for most people, it's a source of news, and we are really seeing, you know, apple, google try to integrate news directly into their device. for example, if you have wall street journal or cnbc on your phone, you automatically get news alerts, right? you know, if you follow a sports team and they make a trade, you get a news alert. the question is how many people really need the volume of information that twitter provides versus the snip et that makes you want to read the longer article. then secondarily, we don't really think it's a true social media platform. what do i mean by that? social media -- the users interact. i post, i like, i comment. the platform to learn about you that way, and then it's because you did this, i'm going to give you this information. the problem is twitter doesn't work like that.

>> shares of chipolte if any to fall. e. coli fears spread. we'll have the latest there. rick santelli, what do you have your eye on today? >> well, you listen to songs about reindeer games. we're going to talk about a different sort of rain. raining in the reigns of a marketplace. the fed has been in control in large part for many markets, like interest rates. the first rate hike maybe things are changing. back to the market, and we'll discuss that after the break. yo? i got a job! i'll be programming at ge. oh i got a job too, at zazzies. (friends gasp) the app where you put fruit hats on animals? i love that! guys, i'll be writing code that helps machines communicate. (interrupting) i just zazzied you. (phone vibrates) look at it! (friends giggle) i can do dogs, hamsters, guinea pigs... you name it. i'm going to transform the way the world works. (proudly) i programmed that hat. and i can do casaba melons. i'll be helping turbines power cities. i put a turbine on a cat. (friends ooh and ahh) i can make hospitals run more efficiently... this isn't a competition!

coming up on the half tame show from right here at the new york stock exchange, a first on cnbc interview with jp morgan's head of u.s. equity strategy given his market outlook for 2016. more pain for chipolte shareholders today. we're going to look at the other fast casual stocks that can benefit from the ongoing trouble at cmg. just buy it or sell it. how our experts are playing nike ahead of tonight's earnings. we'll see you guys over at post nine in about 15 minutes. >> sounds good, cot. watch out for the basketball players on the floor. in the meantime, from cmg to the cme, let's get the santelli exchange. >> hey, rick. >> good morning, carl. thank you. you know, after the fed normalized rates, the first rate increase in quite a while. of course, that being wednesday. a lot of interesting things happened. we had a lot of volatility getting ready for it. the equities even had post

volatility. the equities are a bit lower. interest rates within a handful of basis points. it gives you a clean look in the short end. when we first opened it was about seven basis points for tens and 30s, which still isn't that huge. this is really toning the markets down a bit. how can we tell? for me leading into this, we did a lot to hit on the dollar versus the bond, and the chinese currency. they had about ten sessions in a row. it was very difficult to go back, but it looked to me like one of the longer runs on record in one direction. even though it's only a couple of sessions posted, it changed on thursday. there really is a global issue

of readjustment. jim biaco and i called it the great divergence. the problem is that maybe the divergence isn't as great as we thought. foreign exchange, i think, throttled it back. volatility is there. basically getting on and off the roller coaster. roughly the same place i don't think is shocking. i note that one comment today by -- 0 to 1%. what does that mean? the translation is even though they're raising and everybody is trying to handicap is it every other meeting or regular or irregular, that they're going to have to ease before it gets up to 1%. is it true? i don't know. one thing i can tell you, i don't think that's a problem. as a matter of fact, many times i thought that the fed should be fluid. everything is fluid. nothing should be static in a price discovery true free marketplace. the fed has to lower again.

fine. but the issue is they are passing the reigns back at least at this point. that's my subjects back to the marketplace. the market can recalibrate. one big thing to pay attention to, at the end of the day the global economy is still a glide path that's not very steep, and that should ultimately on the recalibration get more complete, keep rates pressure to the down side. kayla, back to you. >> rick santelli in chicago. rick, thanks. it's not a great day for chipolte. shares slipping as fears over e. coli continue to grow. jane wells is live in l.a. with the latest. >> fortunately, no one has died, but the damage has been done to chipolte's reputation. shares are down 30% in three months. first there was the e. coli outbreak that started in late october. then the norovirus situation at boston college this month, and now a second strain of e. coli sickening five people in kansas, north dakota, and oklahoma in

late november. they all ate at chipolte. no culprit has been found, and it's thought to be produce, but the cdc has not nailed it down. jp morgan has downgraded shares to neutral, and significantly lowered estimates for fiscal year 2016 to a little over $14 from nearly $16, and it's lowering 2017 estimates nearly $1 to $19.13 over $20. btig maintains its buy rating and $664 price target. saying it's frustrated by the continued negative news, but "we believe the company has taken the appropriate steps to guard against future incidents." chipolte has established new food test and handling practices, including dna testing of all fresh produce before it's shipped, doing end of shelf life testing, using test results to measure performance of suppliers and boosting employee training of food safety and handling. this is something the ceo spoke about on our air before the cdc reported this latest outbreak.

>> we've been working with leading epidemiologist and his team to develop systems that he tells us will put us 10 to 15 years ahead of the industry standards. we want to be the safest place to eat. >> that is from "mad money" last week. it's interesting, guys, no chipolte employee have gotten sick, and they do get a free meal. they eat there all the time, and none of these cases have the employees gotten sick with e. coli. >> yeah. that is curious, jane. something about this, wron -- hopefully they get to the bottom of it. thank you, jane wells. up next, wondering what a nearly $9,000 smartwatch looks like? we thought so. now you have your answer. there it is. one of the biggest luxury watch makers in the world is going to tell us exactly what makes this model so special. we're back in just a moment.

a recent report projects apple watch will have 50% of the smart watch market this year, which i have to say despite conflicting reports from low demand. there are rumors of the next generation apple watch coming this march. that will be no surprise. there is a new competition. swish watch make breitling has launched its newest connecteded watch. he joins us with the new watch i would say in hand, but it's on wrist. thanks for being with us. you clarify this is not a smart

watch. it's a connected watch. i studied up on it. it's not so much a watch trying to be a phone. leaving the phone as an accessory. we like to call it. it's a swiss make chronograph that connects your device to your phone. >> want to show the camera? >> yeah. >> so you are able to use your phone. i know that it's iphone connected at this point. >>al android. >> android as well. it was developed both the watch itself and the app in had switzerland. >> swiss made. >> completely swiss made. >> yes. s. >> you can change the settings on the watch through your phone, but the watch also acts independently. >> it can act independently, and you can use the function with just using the push piece, but also in a way to make it more functional, and ease where i to use. you can use your smartphone.

for example, we are known to make watch for pilot. this is the ultimate pilot watch. you can download your lap time. you can -- we actually developed it for 18 months because breitling has -- you'll be doing a lot of things like this since 1952, and this is our last little project, and we're very excited to launch it last week -- the last few days in new york city. >> price point, relative to breitling's other products on the low end. >> and higher. >> in the average. we're average price point is between $7,500 and $9,000. this watch has within specificity. it's in house movement. this is a second quartz in house movement which is ten times more accurate than regular standard

quartz. this is not only made in switzerland, but the movement is made by breitling. it goes along with our chronograph. >> the higher end of the apple watch has a pretty upscale band in gold. you have a pretty active band on that. did you feel like you needed to case the face intact for your customers? >> exactly right. we want -- that watch has been inspired by another watch called the b-15 in terms of the movement. as you can recognize one of the traditional and iconic watch, everyth the goal every time we have a customer wearing a breitling, it's recognizable and a conversation piece. the thing we wanted to do is make a real watch. you can see that that watch has a real hand. it really has a real dial. it's not digital. basically it's a real chronograph that is connected your watch for easy functionalli functionallity. >> what's the affect been of the apple watch on the market for you? did it at all influence how you rolled out this product?

>> no. no, because i think the i watch is positive for the watch industry. the more you talk about watches, whether they mechanical, chronograph, quartz, chronograph -- 18 months ago. it has been an 18-month for designing the project and then to manufacture it so we've not been the timing has not been influenced. actually, we like to do what we said -- for the first connected watch in house movement quartz this year. we introduce you last week. we are on time. any sense of how early orders look. >> we are very excited because manufacturing-wise we only launch it only in the u.s. we only had a limited number of watches, and they are really

selling out very quickly, and alover the network, we selected 20 jewellers that sells the watch first. we're very positive about it. >> thanks for bringing it here and showing it to us. the u.s. president of breitling. >> when we come back, tech insiders sold a lot of stock, but one name stands above the rest. we'll get to that in just a moment.

>> dow has had moves. the past seven sessions. 13 out of the past 15. not today. pretty mild. up bo 67 points. we're about 500 points, almost exactly to break even for the year. >> s&p 500 is about 2% away from being break even for the year. nasdaq still in positive territory by a couple of percentage points. >> up 5.5%. blackberry about 2.5%. caterpillar, same story on the dow. people taking stock in the hope of more chinese stimulus. a lot of it might be buying a name that has been down most of the year. it was the best performing dow component for most of the session, and, of course, tonight we'll get nikery -- micron could use a turnaround story at 16.

wind wroez 10 and some other efforts start to take off. >> that's it for us here on this tuesday. let's get back to post nine. whopner, the whole gang, and the half. thanks so much. welcome to the halftime show. let's meet today, starting lineup here at post nine at the new york stock exchange. john is here along with stephanie link. josh brown. joe tear nova. also on set with us here, dubrofco, head of u.s. equities strategy. our game plan today looks like this. >> we learn the e. coli scare was worse than originally thought. >> motif of the month. the investing themes he says ll