find someplace else to go. >> the eia will reduce its monthly productivity report for seven key regions. and earnings central still in full swing. the names set to report after the bell, yelp and 21st century. >> thank you very much for joining us. we'll see you back here tomorrow. right now time for "squawk on the street." ♪ congratulations to the super bowl champion denver broncos. what a game last night. good monday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber. markets are in no mood to celebrate after friday's punishing session. a week where we will get 60 s&p earnings. yellen on the hill wednesday and thursday. concerns about the banks particularly acute. the ten-year yield around 1.8. oil just hanging on to 30. our road map begins with rip

twitter, it's the hashtag taking over twitter as users grow angry over a potential new feed setup forcing jack dorsey to respond. >> and companies pour big bucks into the super bowl, but which ads will pull off? cbs said it hit new streaming records. >> chipolte shutting down stores until 3:00 p.m. today so workers can attend a company-wide meeting. first up, stocks are poised for a rough start to the week following that friday selloff which pushed the nasdaq to the lowest close since september of '14. banks have fallen for six consecutive weeks and crude continuing to sly. wti dropped below 30 earlier this morning, but trying to hang on. here we are at some of these critical levels on energy. >> the story here is behind the scenes, the credit. i always feel like if you

mention certain company names, you are making it worse. there are so many companies that have debt maturities within the shorter period of time. and at the same time you go back over these banks. these european banks. you see it, they do have oil and gas exposure. you don't know their credit situation. it's amazing they're taking out the 2009 lows. a lot of these banks do have a good book of loans. that's not as problematic as the fact that oil and gas, money is -- let's say it's hard to come by. >> that's true. it's funny, when we don't talk about the european banks, there's been question marks since the crisis itself. in part i think something we did very well here was the stress tests. and so importantly gave confidence to our markets and to those who were willing to invest equity in our banks as they recapitalized. it never took the same tone on in europe. there have been questions ever since with or without whatever draghi is doing. >> it's funny you mentioned that.

i listened to the candidates, they all talk about crony capitalism. there was a tremendous tension between the government and banks where they did have to raise a lot of money. there was never that tension over in europe. the french banks, italian banks, they just skated by. deutsche bank raised a lot of capital, doesn't seem to matter. seems like it's coming due for them when their economy as a whole is betterment but they do have a lot of this exposure to commodities. when you go over a standard chart, they have a big book of oil. anybody who has a big book of oil and gas loans is franticly trying to figure out what its worth. stress tests with oil in the 20s for some, and when you listen to is it, it's jarring. in the end, i don't think a lot of other banks have that kind of stress test. 206r7b8g >> $20 oil the cover of barron's

over the weekend. you have not fallen for the head fakes -- >> i don't like oil. i keep thinking every time i want to get bullish, i keep thinking about the last time we had a big decline where you saw oil go down dramatically. you know, when we had it right before -- a couple iterations, but one before 1998 that was dam i ning. all there is is a million barrels more in excess in the world. that's not true. we are going -- rusty brazil was on tv last week talking about how the cushing inventories are unbelievably high. there's maybe more room. but there's a lot of oil that you can't tell where it is. i think the idea that we only have 1 million barrels extra is wrong. >> you more worried about banks, energy or f.a.n.g.? looking at some of these tech names down from their highs, linkedin, obviously last week, baba down by a third, yahoo!

40%. netflix today will be sub 80. >> what a rose gallery that you have. i do think that f.a.n.g. is still up dramatically from the bottom. people have to recognize. thank you to bob lang for this. f.a.n.g., talking about facebook, amazon, netflix, alphabet, up 166% versus the s&p up 25%, nasdaq up 39%. we use the term reversion to the means, these can come down, but not all of them are that expensive versus tableau data, which was highly valued. when you talk to analysts about linkedin, they were like that was a bomb drop. >> that was destruction. people thought linkedin was doing very well. >> 44% in one day. >> the way they turned on it. i'm so used to analysts finding new reasons to like things once they go down. linkedin and tableau data were so disgraced that it was -- i

could not believe how all the analysts decided at once to heck with these guys. they're not done. >> no. >> they're not done. the sellers were so veracious, they couldn't finish in front. >> many of the stocks had incredible momentum in 2015, they have seen that reverse dramatically. amazon, yes. it was an incredible performer, but it lost a quarter of its market value in a month and a half. not even a month and a half. >> was a cult stock. >> netflix even more. you hear things, a lot of funds have focused on these growth names that have done so well. tygart global, they're getting crushed. >> are there redemptions? >> i don't know if there's redemptions necessarily. no, you may not be seeing redemptions but you're seeing serious draw downs as they like to say -- i love those words they come up with. the market goes down -- it's a draw down.

a draw down. >> i like that. very gentile. >> i love the language. we lost money. >> there's no money to give to these guys. there's some ♪ ♪s that are just extraordinary. you see people like genworth, a company like genworth, tom mcinerny talking about how the oil and gas loans have made it difficult for him to refinance. an insurance company. >> we have yet to see the true shake o shakeout when it comes to oil and gas. >> what shakeout? i was e-mailing you back and forth this weekend about chesapeake. they have money due in a month. >> we'll talk about what's going on at ete, the williams deal later in the program. jim, the dividend cuts are starting to come through. that's been something. the real meat of restructuring that's about to occur, we're not there yet. >> a "journal" piece on

investment grade debt, 155 billion of corporate grade debt to be downgraded to junk in the next two years? that's the beginning of a long slog. yeah, we're early. i hate that. it's so negative to say we're early. >> except that few people seem to think we're going to have a recession. >> eight states, "usa today," thank you, that rely on oil and gas. the banks are well diversified. but it's almost as if nobody cares. i know that linkedin and tableau data have pull. i know that the oil and gas companies are beleaguered, but you hear people come on and say over and over don't worry about it. i'm waiting for people to come on and say they're worried about it nobody talks about the gold stocks doing incredibly well. the ones that do well when gold was 1500. china is closed. that money is going into gold.

going away from their own currency. they do have freedom to buy gold. i don't want to just say, look, it's frightening. what would have been frightening is if the market was up big. i will say they'll get suckerred. >> are we just going to keep pinballing between i'm worried about china today, whether there's a devaluation, and the fact their economy is not growing as fast. then coming back to european banks, oil and gas, and lower oil prices on credit. when will we get back to something positive? >> how about if janet yellen says i recognize all the problems, and we can't wait. but then you have that -- we have to hold off. you have that unemployment number, plus 5. you're fighting the fed and you're fighting the tape. these are things that we have not seen in a long time. this is different from 2014 in the spring, big re-evaluation of some of the techs. some of the firms that own these stocks and the retail investors that own the stocks they're like what do i really own if i own

tableau data other than a hot stock that's not hot. linkedin in in ways was the heart of the sell off. they're very good in social, very good in mobile, very good in cloud. those were things you liked. now you hate. i like -- >> and they're not just a consumer name. they are heavily leveraged to the enterprise, spending, recruiting, hiring. i found myself thinking i want the triple play. the new burt's bees lipstick which is natural and organic. i like the splashless clorox. locker season for kingsford, it's been warm. then the brita ad coming that has steph curry. i'm going over clorox because i had the ceo on last week. i'm saying i like this. >> i didn't know they own brita. they own brita. i was with my daughter this weekend at oregon. not at the game. she's like, dad, the plastic bottles, that's britta.

today, chipolte closed for a couple hours. you have clorox down a lot. the idea of drinking clorox is abh abh abhorant. >> on to twitter real quickly. according to buzzfeed, the company plans to change its timeline to highlight what users think it wants to see rather than the order it's posted. since that came out on friday, use ver users have expressed their displeasure. jack dorsey said hello, twitter, regarding twitter, i want you all to know we're always listening. we never plan to reorder timelines next week. >> he was retweeting a lot last night during the game. >> matter to you if it's chronological or not?

>> no. no what matters to me is a resumption of growth and the idea they can get more revenue in, whether they can charge. i have gone back and forth with them to a concierge service by looking at your feed without feeling it's a near death experience. the growth there is very slow. the question is, as i go back and forth with bob peck, do they have any growth at all? if you look at some of the companies that reported growth earlier this quarter and the growth was spectacular, stocks were down big any way. >> right. though twitter stock is down 32% this year. maybe they're already discounting the fact there's very little growth. >> it's not smuckers. it's not campbells soup. >> no, it's not. doesn't own brita. >> but it's down a lot. this market -- i talked to the adobe ceo and the salesforce ceo, business is good. but what are you raising your

eyebrows about? >> i'm just raising my eyebrows. >> do you have something wrong with your eyes? >> a little irritation. >> the spray paint? >> i don't use the spray paint. >> i think right now, they could -- someone could preannounce business is good. i would say, well, you know, that's the last quarter. sell that. that's an opportunity. now if it's hasbro, do i want to go? yeah. it's not up anymore. >> business up 35 at hasbro. when we come back, the super bowl round up from streaming to the commercials, tomorrow, new hampshire's primary could be make or break with jeb bush. stay tuned for larry kudlow's interview with the candidate. and earnings, we'll get coke, disney, pepsi, all over the next several days. more "squawk on the street" in just a moment. here at td ameritrade, they work hard.

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some more information regarding super bowl 50. cbs claims the broncos victory over the panthers had a record audience streaming the game. the network has yet to give hard numbers, but for last year's super bowl, nbc said it broke streaming records with 800,000 average viewers per minute, 1.3

million concurrent users. as for the ads, everyone from amazon to t-mobile to yum to pepsi tried to make an impact. >> pepsico reports this week. they're often mentioned as being the best. clearly did a lot of great stuff. but the cause and effect from wall street's point of view is not that great other than the fact that pepsico has been a consistent situation. certainly don't feel different after you watch the super bowl ads. i don't know whether people would say, wait a second, i got to stay away from that. the ad's a bomb, but i think ads work. somehow pepsico has affiliated itself well with the nfl, so has under armour. cam newton, i had kevin plank on. there were two or three ceos that i didn't have on last week, i did have kevin plank on. under armour has a great story.

it would have been better had cam won. he would put a lot of money behind cam, they also have steph curry. that team is the most successful team this stage. >> yep. >> i caution people, if you're buying pepsico because they had good commercials, that's old style. >> won't help you. >> no. >> manning did endorse budweiser, right at that moment. >> they said they paid him nothing. >> you can't. he's a current athlete. i don't think they're allowed to endorse. >> he did wis the hekiss the he john's. >> yum, pizza hut is very strong. talked with the ceo last week. pizza hut doing well. taco bell doing incredibly well. taco bell, when chipolte closes today, i hate to have them in the same sentence, they are different. one is natural organic mexican,

the other is mexican. yum is doing incredibly well. splitting the company up. papa john's. domino's doing well. pizza doing well. >> how about the ongoing war between verizon and t-mobile taking shape around the ads. steve harvey, nonstop. >> i spoke to lowell mcadam, ceo of verizon, they say look at the data. the data shows we're a much better network. john ledge sr is a guerrilla fighter, but he's always trying to play catch up to the network. >> he is. sprint is trying to invest a lot in its network, you needed network to be there if you're going to add people. it's an uphill battle, certainly when you have the balance sheet they do with 34 billion in debt. i misstated it a couple weeks ago. $20 billion investment, 34 billion in debt. >> that stock may not figure as

important as the debt. >> on so many things, including chesapeake, which you mentioned earlier, which will be down a lot, jim, on this news of coming debt maturity. it seems to be resonating this morning. >> i know that in real money they talked about the debt coming due. that's an ugly situation. i would point out, we work for comcast, i always put that first, comcast had a great quarter. the stock did well. verizon had a great quarter, stock did well. those are -- but that's a limited -- i always say at the end of the show, there's a bull market somewhere. getting harder and harder. there's gold and higher yield. higher yield has to be safe. i think that's something that we're seeing yields that are kind of -- they look so big, but they are -- >> for a reason. >> yes. >> they're not sustainable. >> when we come back, cramer's mad dash, we'll count down to the opening bell. a look at the premarket this monday. it will be a rough open.

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we have a little less than seven minutes before the opening bell for what seems to be at this point a down open. >> yes. >> significantly so. >> taking out levels where people are therefore unsure. the technicians are all uniformly negative. i don't say the stock is in free fall, that would be great because we would get to some level. you need a floor. it's endless. one of the ones that's been endlessly down, baker hughes. this is in your wheelhouse. they were at one point doing a

terrific deal with halliburton. if they could get approval. if you look at baker hughes, people were thinking, you know what? maybe this is the beginning of a move. morgan stanley downgrades it today. fine analyst. goes buy to hold. there's kind of -- where is the support for this? the rig count is down. worldwide slumm worldwi worldwide slumber had a big quarter. but does it matter? we're at a moment where drilling -- >> probably still does matter, there's still a lot of questions of whether they'll be allowed to if they do it and oil bottoms this is the opportunity. you need oil to bottom. you need to see drilling to stop to get a bottom. so it's a catch 22.

it's a joseph heller novel, those in these stocks, like diamond off shore cut, d.o. not good quarter. i come back and say clorox, kimberly, narrow market. verizon under 50. i'm not saying exxon, even though exxon had a fine quarter. >> that's the narrow mar kept we'll watch the broader market when it opens in a few minutes on "squawk on the street." it looks like we'll have a significantly down open again. so many of those fears that we saw on friday continuing to resonate. we have more after this.

. you're watching cnbc "squawk on the street," the opening bell in a minute and a half on a busy week full of earnings, yellen on the hill. china closed for the lunar new year. year of the monkey begins. some ratings from super bowl.

cbs saying super bowl 50, the highest coverage in history, 49 rating, 73 share. last year it was 49.7, but in an age of streaming like we are in, that's a remarkable number. >> yes, it is. it highlights again why so many of these ceos want to be affiliated with the nfl. it's not peaked. when i talked to the ownership of the philadelphia eagles, they talked about scarcity value. these are piece of fine art. the game itself, the streaming, the coverage is so good. this is just a national past time. it's what baseball used to be. national past time. >> it's the one event we still all share. >> we all do. >> i was on a plane last night visiting my daughter in oregon, coming back, they had gogo. they couldn't stream. they apologized endlessly. i tried to find some way around it the whole plane was in

rebellion. we all thought they would stream. but you can't on gogo. >> let's get the opening bell here. a look at the s&p at the bottom of the screen. a busy week heats up. at the big board, extarrant organization celebrating its spin off. at the nasdaq, the chinese consulate general of new york celebrating chinese new year. >> the year of the monkey, mr. faulk who runs kimberly said that is historically a year that the chinese have more babies than usual. and it was one of the trends he gave about why kimberly could have a good year. >> am i grasping at straws? there it is. that may be the most straw grasp moment of the show. year of the monkey, more children. nine months later with the super bowl. kind of in sync. >> what was up with that? the league trying to convince us that the game is an inspiration. >> a productive activity of some

kind. >> wow, everybody stretching trying to get anything positive. positive spin. >> i know blackouts -- nine months after a blackout, but i didn't know the super bowl. >> year of the monkey should be fabulous for the fourth quarter, i guess, of -- maybe. do the fourth quarter of kimberly, hockey stick quarter. >> only one dow name in the green, johnson & johnson. >> and they're doing very well. we didn't talk about that quarter, how strong it was. and the fact -- we did mention it but a lot of drug stocks have been weak. that's not one of them. when you listen to any party, is there a party that -- when wall street is being just plundered, the negativity on this election. the right, the left, everyone is talking about crony capitalism. wall street, the banks are bad. in the meantime, the banks don't

return capital the way they'd like to sanders comments are resonating so much about wall street. >> yes. apparently there's going to be some sort of a protest outside of here about the banks, though it's unclear who will show up, if anyone. >> bank stock performance? >> i don't know. interesting op-ed from steve iseman. >> yes. >> one of the main characters in "the big short" who said in his opinion the issue is not the big banks, but income inequality. >> which some argue if the stock market continues to behave the way it is, problem will be solved. >> a lot of equality coming our way. >> gold. we can come back to gold. i think gold has a place in peoples portfolio. i know people feel the junior gold index, we want to take a flyer here. the other thing, you know what's funny? there's a cyclical stock that trades on the nasdaq. cyclical meaning low multiple, could have a good cycle coming

up. it's called apple. it's apple. verizon talking about how the iphone 7 will be bullish. all the new 5 g. apple holds up here. big buyback. it was never f.a.n.g. a lot of people said -- when i came up with f.a.n.g., i wasn't like buy f.a.n.g. people are saying on the plane, you have been de-f.a.n.g.ed. would you give me a break. >> was an observation. >> it was. >> apple was not the "a." don't even think for a moment that apple is the "a." because apple is valued like a -- like a -- a -- i don't know! an airline stock. >> right. now it's not f.a.n.g. any way, it's fana because of alphabet. >> we focus people on the debt

side of the balance teat sheash equity and gas. shares down about 50%, company about coupon payment that i believe is expected from chesapeake about a month from now. middle of march. that has some people wondering, i'm looking at the issue here. that's -- that's -- that is impacting them. i think it was a $500 million bond issue, they do have a significant coupon payment. some are wondering are they going to pay this coupon? >> doug lawler ceo has done a fabulous job. freeport was up last week because of copper and gold. copper has been acting better. that's a weaker dollar. chee chesapeake doesn't have copper and gold, you're up against the elements. the stocks i want to watch are linkedin and tableau data if they bottom, you will see growth stocks come back.

it means the seller is finely finished. on friday the sellers were like get me out of here before the super bowl. incredible the selling before the last half hour. linkedin is a very real company. tableau software, candidly, that's not a cloud company, that's an analytics company. people were saying it's cloud. not everything is cloud. tableau data is not cloud. it's an analytics company that looks at your board of how you're doing. linkedin, very real company. the company had assured people that things were better than expected. it couldn't shock me if they came out and clarified. maybe clarified. by the way, guys, i'm saying clarify. that wouldn't shock me if they're watching, we shouldn't shock people. >> people are not giving yelp the benefit of the dow. >> oh, my. >> down 8%. >> you know, they've got a

problem. they've had a problem with alphabet, with google. in some ways, this is partly caught up in this whole not king of the web. if you're not king of the web, you're pawn of the web. that's -- your eyebrows have gone up 40 times. just prop them up. get some darn toothpicks. >> eventually i will get some work done, but i'm not quite there yet. i'll let you know. then i'll like like -- oh, hello jim. >> you need work done. you need a factory. >> then i'll look like a freak. >> are things happening now that are -- they're daunting. when you see these dif dent cvi cuts. conoco cut the dividend last week. >> they did. >> a conference call they said it's still important. when you listen to the conference calls, like i did last weekend, nobody is admitting that things are not good. linkedin, what was the problem? they talked about macro economy.

we didn't think they had macro exposure. conoco said they will preserve that dividend. they said on the call it's important to preserve. you can't have both, right? north carolina -- the panthers didn't win the super bowl. >> you can't have both when you're leveraged. we're coming back to -- we always do in these scenarios. it's not systemic, not like the financial crisis, but in oil and gas, when you have debt on your balance sheet, you have to make a choice. do i pay my interest, keep my cap x somewhere, or do i keep my dividend? >> where is the $10 a barrel you have to pay to the feds? where does that fit in? >> that was a nonstarter. >> we had a nice fellow on. >> we talked about jason about that. >> at 1847, we're closer to a 1700 than a 19 handle. some of your valuation targets

that you shared over the past few weeks take us well below. >> now we're at a whole new level of trying to figure out where things are. some retail holds up. because i think in the end retail is actually doing okay. people don't want to hear that. retail is doing okay. we have taken out all sorts of levels, going back and wiping out the whole 2014, 2015 run. that's part of what has to happen. got to get people out of stocks and new hands coming in. not a lot of money coming in. that's part of the problem. we don't see money coming in, people banging stocks down. there's a level of uncertainty that i've not seen in some time. even as i -- it is -- as david points out, it's not systemic. this is a better moment for the banks than 2009, '10, '11. when you try to tell people, look, things are very -- not that bad, they come up and say was about these companies that

are private equity companies? >> all right. yeah. >> carlisle. >> blackstone? >> blackstone. where are the ipos? >> they all trade publicly. >> where are the ipos. >> you're talking goldman sachs and morgan stanley. >> there's no liquidification. >> citi down 5%, bank of america down 5%. big moves. >> for what is already the worst performing sector of the year. >> very worrying to see that sector going down. no money coming in there. i spoke to john stump, ceo of wells fargo. they have some oil and gases loans. stress testing them. he was banker in denver during the last oil chance. if you don't have the fed raising the rates, people feel you can't own the stocks. bank of america trades dramatically under the book

value of 5050. but the test that the feds do, you don't have a chance to stand there and buy it until june when the feds review. it's a disconcerting moment. i want to tell people that stocks that have already been through the mill do better than the ones that haven't. the cyclicals caught a bid last week. caterpillar off its low, cummings off its low. tech stocks are up big. how about the rest of the market? the rest of the market, if it's already been mutilated and spun, then it does seem to catch a bit. already been mutilated, they're buyers. if it hasn't been mutilated, people want to wait until it's mutilated. i totally get that. recognize if you're in some of these stocks, it's not the fault of management. it's not like the management of adobe is saying business is weak. some of the cell phone

conductors, business is pretty good, but no one seems to care. >> man. >> what? >> i know we have to get to bob. i will talk about e.t. in a moment, down 31%. >> call home. >> the s&p at the lowest level since january 20th on that day we bottomed out at 1812. >> good point. >> let's get to bob pisani on the floor. >> we are 38 points from that december low. that's an important technical level. not a lot of other ones besides that know. this is the euro stocks, 15-month low. you have to go back to 2014 to see a lower number than that. 2684. it's all about the banks, largely about them. deutsche bank, pnb, all down 4%, 5%. the euro bank issues, we talked about this last week.

we have declining revenue, restructuring and litigation charges, flattening yield curve. withdrawing from key markets they've been in, like barleys withdrawing from marketmaking down here on the new york stock exchan exchange. and the whole book value, there's concerns about asset write down issues. many of the you're rov banks never had the write downs u.s. banks went through. defensive names in europe, consumer names not down usually as much. unileveller, lvmh, lorial, not down significantly. sectors in the u.s., led down by tech and all the software names weak on friday are weak again. goldmans down, jpmorgan, all of them down about 3% or more. energy names weak. oil is down. barron's had negative comments

on energy. that's not a typo, chesapeake, david has been talking about that this morning and the issues surrounding that name. diamond off shore scrapped its divide dividend. we had conoco scrapping its dividend last week. conoco had 8% dividend yield, diamond offshore had a 2.5% dividend yield. a savings of about 69 million. revenues of $1.7 billion. significant savings for them. they had $130 million cash on hand and they still cut the dividend to nothing. that's a sign that they believe oil will remain lower for longer. that's the team we've been seeing. there are consumer names, this happened on friday as well, i put up sathe same four consumer names, they were down about the same on friday. home depot, starbucks, nike and

under armour. keep an eye on that 1812, that january low for the s&p 500. david, back to you. >> thank you very much, bob pisani. you mentioned some losers in energy, the biggest is shares of ete. a company i reported on frequently. it's in a deal to acquire williams. one of the larger deals we would have seen in the energy sector. the question still remains will it actually happen? late on friday the company released an 8-k saying its cfo, jamie welch is out. mr. welch one of the architects of that deal along with the man who runs ete and etp, kelsey warren. he's been a chief communicator with wall street, the banks, investors. it was a simple 8k followed up by another 8-k filing where they

said the replacement of mr. welch was not based on any disagreement with respect to any accounting or financial matter, it was not a matter of health. mr. welsh's health is fine. not accounting, not helicopter, no information forthcoming. no press relesion. no conference call. no nothing. from a company that has incredible capital needs, incredibly complex structure in terms of the securities -- set of securities it has out there in the marketplace and a need to be in the capital markets. just to put it in perspective, they need 6 billion there cash for the williams deal itself because it's not just a stock deal, it's $8 a share in cash. that amounts to about 6 billion there. they need 3 billion because we're assuming debt will be accelerated at wpz, the part of williams, one of their

partnerships that is also being acquired. and if it gets downgraded, it accelerates 3 billion in debt. let's assume they need that back, and 7 billion of cap x they need to do. 4.2 billion in etp, another 3 for roughly, wpz. where are they going to get all the money? where is it all coming from? that's the question. how can they do this deal at the current terms, yet the contract is solid. it doesn't have any out s for them. it is mysterious. mr. warren, i could not get in touch. the company's adviserers had no idea that the 8k was coming on friday. they were not told either. >> mr. welch, a man viewed as -- very liked guy. >> he's still on the board, jim.

appears he's still on the board. unclear whether he was fired or what. so much of his compensation is based on this. kelsey warren, 188 million shares of ete. >> he's long ete. >> he was one of the richest men in the country at one point. >> a lot of the oil people were the richest people. >> the dividend from ete gets pushed up, that helps support them, the cash flow level there which supports a lot of debt. we talk often about dividends needing to be cut to meet capital needs and needs to pay interest, when and if is it going to come and how will they go about meeting those needs? that stock down 30%. apparently the williams deal, we'll see. >> single stock circuit breaker on chk halted. >> chk halted. >> it does have -- look, when you try to do our job, you don't want to sit here and say, listen, everything is coming

down. stock market stocks bottomed on friday. it's a rolling bear market. you could argue the staples are doing well today. it's a rolling bear market. still hitting oil. oil was going up last week. you had exxon, one of the better performers last week was exxon. tech, the rolling bear market. biotech. drug stocks that are bottoming and going back up. it's difficult to say they're all going down. that's not the case. it sucks people in because it looks like things have bottomed. >> we have to get to rick santelli, wle have not mentione the ten-year yield. 1.7. >> yes. yes. yeah. 1.78 to be exact. let's start out at the beginning of the yield curve. two-year note yield under 70 buy sis poi basis points this would be the lowest close since october of 2015. five-year is important.

not only are we under 120, 115 to 120 is super important. it could be the stopper, but we have to see how it behaves when it gets in this like it is today and how many days it takes whether it goes through or not. if you go to the chart and open it up earlier, all the way to february 2013, you can see how we're sitting on the precipice of an area that doesn't have a whole lot of wood. ten-year note, since we settled under 180, end of april 2015 for 30-year bonds which are flirting with the 260 yield. it is for the most part all about europe. how many times have we heard over the last several years, market stability. we want to take that logic into china. what good has it done? banks have not healed. nonconforming loans have not gone away. the spreads are widening, but

even though those yields are going up, bund yields, the left since february of last year. we're getting closer and closer to 20 basis points on the bund. look the two-year euro note. may news 51. never saw that before. the last chart is important. the dollar index, at the lowest neighborhood since going back all the way to the 22nd of october last year. on the 4th we did have a settlement slightly lower. for the most part yields in europe are pushing us down, good ones like the euro curve on the german side. the rest of the spreads are widening against other companies. that and banks in europe are a part of the big equation total. carl, back to you. >> thank you very much, rick santelli. we mentioned that haul ed thaed it's resumed trading. at 1.92.

when we come back, larry kudlow sits down with republican presidential candidate jeb bush who is hoping tomorrow's new hampshire primary will give his campaign a needed boost. dow is down 256. back in a minute. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep it all digital. we're looking to double our deliveries. our fleet apps will find the fastest route. oh, and your boysenberry apple scones smell about done. ahh, you're good. i like to bake. get expert advice for your small business at att.com/small business.

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keeping our eye on chesapeake, halted but now trading again. one of many names leading the markets lower today. stop trading with jim in a moment. ohh ah ah aflac! aaaaf-lac! ta-daa! he's not a very good magician. he paid my claim in just one day. one day?! shh! how does he do it? in just one day, we process, approve and pay. one day pay, only from aflac.

time for cramer and stop trading. >> look at a company called brix, brx, today's disaster. they fired the cfo, coo, chief accounting officer. sub optimal situation developing there. rbc, which took it to a sell this morning, not unusual because it said they have financial problems. this is a mundane group of retail properties. supermarket, considered pretty good. i had michael carroll, the ceo on several times -- former ceo. i like that they say they need time to heal. >> that's it?

>> time to heal. >> time. to everything turn, turn, turn. ecclesiastic situation ending here. doesn't end as well as that song. >> there was a report out on friday that kirkland and ellis had been hired to look into chesapeake, reuters talking about that as well. the equity is disappearing. we said for months and months. >> disappearing. >> sub optimal situation. >> what will you handle on "mad?" >> i'll go over the tech wreck. what happened. how you can read all the conference calls and think things are good. >> 6:00 p.m. tonight. >>ky ma can i make it until the >> when we come back, republican presidential candidate jeb bush, and the dow selloff, down 266.

s&p at the lowest level since january 20th.

. good monday morning. welcome back to "squawk on the street," i'm carl quintanilla with sara eisen, simon hobbs, david faber at the new york stock exchange. markets continuing that punishing session from friday with the selloff now approaching almost 2% here on the s&p, down to 1847. it is spread equally between banks, oil and gas and some continued punishing of other names. >> coming up, jeb bush sitting down with larry kudlow following this weekend's debate and tomorrow's important primary in new hampshire. that's coming up in a few moments. a tough start to the week for the markets again. s&p close to a loss of 10% for the year so far. let's get some analysis. kevin gillis president of fixed income capital markets. art, what do you see this morning that's different than we had before? >> simon, unfortunately we don't see anything that's different than before we have a selling stampede. they're coming after the leadership now, which is a sign

we're getting towards the later stages of a selloff. when you look at what happened friday, there's nothing to stop that negative momentum. the headlines are worse. north korea headlines, concerns of cash level reserves of china getting down to 2012 levels. russia and geopolitical action there. on balance there's nothing to turn the tide here. oh, by the way, wti back below $30. so, you know, all of the drivers you look to flip a switch and say the selling will run out of gas, not happening today. >> kevin, are you among the people sitting up and taking notice to what's happening to bank credit? particularly in europe, be it related to what's happening with energy or the lack of interest rate rises moving forward. how concerned are you about what you see? just before we came on air here, i was watching the banks in this country morgan stanley falling and falling. i think down about 6%.

bank of america, citigroup in a similar situation. what's your take? >> simon, it's interesting because we didn't expect interest rates to be where they are so far this year. you didn't expect the fed to what is apparently just stopping the rate hike cycle. so the bank stocks in particular who get a lot of financial left off of any time the rates go up, especially if the fed is leading that, that stock almost went the other way. so financial stocks have gotten pounded on the realization that this economy and the global events that are happening will not put the fed in good position to raise rates. in fact, rates are falling. we will continue to see pressure on credit and on financial stocks in particular if rates continue to fall. >> my specific question, kevin, was about what's happening in europe. you are comfortable that this time around, whatever happens broadly to the market cap of these banks in europe, because

we have the ecb, essentially behind everybody there that we're okay in this country? it doesn't transfer over in a systemic way this time around? >> well, you know, it's so funny, we have not talked about europe over the last two, three weeks, only in the last week has the credit and the banks in europe become a headline story. it is true. now the fact that they're going to -- they would somehow take the u.s. banks down is more of a limiting effect. most of the european banks in the u.s. have been as proactive as they can. this is more of a domestic situation as it is a european situation. >> gold continues a steady march higher, back to the highest levels since june. what is that telling you? >> well, you know, it's interesting. it's running counter to what you think would happen here. had not seen much of a bid on a flight to safety for the entirety this year.

just last week with a 2.5%, 3% down leg, gold caught a bid. it doesn't tell a whole lot, but if you're looking signals that we're getting closer to the end, you want to see leadership being affected, gold catching a bid, that's probably in the last gasp of things going on. to simon's last question in terms of our banks and exposure and any contagion we get, you have to understand what is different now than what was happening in 2008, the asset class behind the concern is energy. in the u.s. it's energy. our banks are exposed between 5% and 8%. in 2008 it was mort taj mortgages, it was a 40% exposure rate and our capitalization is much higher. trying to draw a line higher to european banks and our banking system is faulty logic. >> i appreciate that. that's why i asked the question to get the answer i just got from you, art. kevin, what is your advice to

shareholders here? >> watts going on in the safe haven, trade in treasuries has now become a full-fledged concern about domestic economy, global economy, inflation, lack thereof. the rush to safety is the proper trade. gold, as art mentioned, we're seeing some buyers in gold, mostly they've been in treasuries for liquidity, safety and for absolute yield. if you look at treasuries versus sovereign credits around the world, there is hardly money flying that will continue to happen as long as oil stays sub $30 a barrel. it's a true trade to safety now. that's where investors should be. >> art a couple times in your commentary, you suggested we might be getting towards the end of the selling because leadership was being attacked within the market. do you think people should start buying here? what is the advice? >> you don't buy in the middle

of a selling stampede, that's very true. we're in the middle of that now. friday's action and today's action. when you look at what that will look like, if we get a couple constructive days, if you can move energy prices above 30 for a period of time. defensive is the way to be now, but you also have to be careful. dividends get dangerous when they get overbought. utilities are a great example. they're the clear leader this year, up 8%, 9%. we have not seen multiples this high and a yield this low for quite some time. pick carefully. you'll probably do much better picking something in telecom versus utilities. this will wash out. >> retail sales as well this week. art hogan and kevin gittis, thank you. up next, republican presidential candidate governor jeb bush will be speaking to larry kudlow. will new hampshire be his last stand or can he gain some ground

after a strong showing at the debate on saturday night? "squawk on the street" will be right back with the dow now down 300 points. [woodworker] i live in the fine details. that's why i run on quickbooks. i use the payments app to accept credit cards... ...and everything autosyncs. those sales prove my sustainable designs are better for the environment and my bottom line. that's how i own it.

sharp declines in the early action. the dow is down 300 points. the s&p 500 down 2%. this on top of the declines we saw on friday. many were wondering if we could see a bounce back after a 2% decline in the s&p 500, 3%

decline in the nasdaq closing at its lowest level since 2014. the sellers are back out in force again today. we want to go to new hampshire. the presidential candidates are making their final push there ahead of tomorrow's primary. that's where we find cnbc's senior contributor larry kudlow who just spoke with former florida governor jeb bush. he joins us now. good morning. >> reporter: good morning. thank you. we talked about the economy and where his 4% growth plan is, and later on i wanted to know if donald trump got into his head during some of these debates. >> at the town hall meetings people ask real questions about real challenges the country faces. the pundits are following the he said she said part of politics who is winning and losing. real people are concerned about the declining income of the middle class and people stick in poverty. the only way is to grow the

economy, you have to grow it closer to 4% than 2% which means drat dramatic ways in which we tacx and regulate front and center is the duty of the next president. >> you have one of the strongest tax cut plans of anybody. >> 20% tax rate rather than 38 plus. moving to a territorial system away from worldwide taxation, allowing for the return of that capital at 8%. so that is reinvested back into the country, allowing for full expensing of capital investing, which is, to me, is missing in the recovery in the country. the recovery in the heartland of the economy has been anemic. we need to stimulate it to

create higher productivity and create higher wages. please brag about the unemployment rate below 5%, brag about job growth, but they can't brag about income. people are losing jobs at higher wage levels. >> donald trump is proposing or suggesting a 45% tariff to negotiate with china he's been pretty much on the attack with mexico and japan. of course he wants to build the wall. can you give me some quick comments? do you disagree with what mr. trump is saying? >> i completely disagree. a 45% tariff with our second largest trading partner would likely lead to a global depression where you would have hundreds of thousands of people, millions losing their job here. higher prices for families. >> would that -- could that be used as a negotiating card? the chinese are no heroes. they lie, they cheat, they

counter fit, they steal. >> using existing mechanisms to attack. if they attack our servers, as they have done with the hr office of the federal government, 23 million files, challenge them. but with sanctions. hit them where it hurts. challenge them when they steal intellect cual property. it's called a free trade agreement because there are elements in it that need to be enforced this administration doesn't do that. i think there anybody would suggest we should do it. his approach is not -- it's not a policy. give me a break. 45% across the board tariff? >> he sees it as a negotiating tactic, the dealmaking. >> tell that to the plant workers at boeing in charleston, south carolina. tell that to the people that are selling caterpillar equipment from illinois. tell that to working families that will get higher prices when they go to walmart. this is not a serious person.

he's fantastic at playing the role of a candidate, but as president of the united states, you can't disparage people the way he does. you can't insult people the way he does you have to have an economic policy grounded in solid conservative principles. he doesn't. >> let me go back -- >> you're not a trump guy anymore that would break my heart if you're defending donald trump. >> i'm just reporting here. >> you heard my views. >> you and he have the lowest corporate tax rate proposal, his is 15%, yours is 20%. i will give credit to both of you. he is on the growth side. about a year ago just looking at the clips, you announced, i believe, your super pac, it was about $100 million in it, that was the rumor. some people think you blew out governor romney with that announcement so he wouldn't come into the race again. for a long time you were running pretty much at the top of the

heap in the polls in the 20s and mid 20s. what happened? where did it go wrong that you slid down in the polls and even though you may make some of it back in new hampshire, where do you think the breakdown was in your campaign? >> i've always known it was going to be an arduous process. people have higher expectations on me. for example, if i proposed a 45% across the board tariff on china, people would, like, the man is crazy. donald trump does it, everybody, oh, very sophisticated negotiating tool. this is the standard that i expected. so i never felt comfortable being the front-runner for sure. i knew i had to earn it. that's what i'm doing. i feel good about where we are. >> you're a very good governor of florida. i think -- that's a consensus view, certainly my view. do you think you were unable to communicate? you have very good pro growth program. you were the first guy out there with the 4% growth target. you told us here some of the problems in the economy. do you think you didn't communicate that stuff?

did you get diverted into other things? >> there's not as much focus on detail policy yet, but there will be going forward. people as they get closer -- in the granite state people are interested in having someone that can be president, we're starting to see in the testing that goes on that some candidates are good at repeating a refrain but may not have the proven leadership skills. they have not have the life experience that suggests they can make a tough decision. as people get closer to this looking at my record becomes more important and the detailed plans we laid out. >> most folks believe you had a good debate saturday night. most folks believe your last two debates were good. before that they weren't. the question i have, did donald trump get into your head? >> nah. >> during the earlier debates? >> no, he didn't get into my head. i've just gotten better at this. if you want a president that strives to be better and do

better on behalf of the american people, then you should consider supporting a guy like me. if you're going to support someone who thinks they got it all figured out and won't grow intellectually and won't grow in terms of improving who they are, how they are, vote for trump. >> i know your goal tomorrow is to win. i get that. if you finish third, that would be an upset, too put you back into the race. >> yeah. i got a list of obituaries that have been written about me. third means i'm alive. that's beating expectations. >> you intend to go into florida and run. >> absolutely. >> even though it may be a tough race for the former governor. >> i'm totally confident i'll be campaigning in florida and confident i'll go well there. there are lots of candidates from florida running. the one who has the three-statewide elected officials, all of the speakers of the house other than marco that are supporting a candidate, they're supporting me. it's not because they don't think marco rubio is a good guy, he is. it's that i'm a leader.

>> well, you can see he's -- i think he's more determined now. he has more confidence. he's beginning to hit his stride. he'll probably make inroads into the vote tomorrow, but the questions linger, has jeb bush been able to communicate his economic growth plan, pretty good plan in my opinion. he and trump are the lone men on the business tracax rate. but the question remains what happened over the past year and did donald trump so get into his head that trump knocked him off stride, perhaps never to get that stride back? i don't know. it's a matter of the future. but right now that's a pretty upbeat jeb bush. that's what i saw today. >> and a great interview by you, larry. thank you very much. larry kudlow joining us ahead of that primary in new mexico tomorrow. when we come back, cam newton walking off his post-game

interview after losing to the broncos in the super bowl. peyton manning becomes the first quarterback in nfl history to win 200 games.

we're looking at another ugly market selloff. more than 300 points. all major dow stocks are down, except j & j, all s&p 500 sectors are in the red. oil is below $30 a barrel. carl? >> just to touch on the super bowl last night. the broncos beat the panthers 24-15. peyton manning making history. cam newton not being the best sport after the game? what does it mean after the game? drew rosenhaus joins us this morning. good to see you again. good morning. >> good morning. >> really quickly on that press conference, cam's getting beat up a bit here. how much of this is deserved? how could he have handled it differently? should he have handled it differently? >> i really don't think it's that big a deal. when you lose the super bowl, you should be upset. you should be frustrated and down and disappointed.

cam newton is one of the great competitors in professional sports. he wanted to win that game desperately. i don't blame him for being devastated afterwards. i don't think people should get up in arms about him leaving and being dejected and walking off. i don't necessarily recommend that, but i don't think that's a big story. >> there's also the sort of curious postgame interviews that peyton manning gave, references to drinking budweiser, obviously kissing papa john right after. how much of this, when you're an agent, when you're their agent, makes you wince? >> well, it didn't make me wince -- it wouldn't make me wince at all if i were peyton's agent, he will be making millions of dollars from budweiser and papa john's. we know peyton manning is a virtual certainty to retire. one of those rare players that's going out on a golden parachute

as a super bowl champion. an all-time great quarterback. he's now going to be making his money off the football field. so you can see that segue to budweiser, papa john's. he's getting ready to walkw awa from a lot of money on the field and will now be making it endorsements. >> i think you're letting cam newton off too easy. he dances, so vibrant, such an example for kids. comes on with his versace piece, his gold under armour shoes. he can't act like a sore loser in front of 100 million people. >> you know, it's hard to understand what it's like to lose the super bowl. these guys work their entire lives to play the game of a lifetime. >> let me ask you a question -- >> when you lose, it's devastating. these guys are competitors. >> but peyton manning has lost the super bowl.

a lot of people say he doesn't do that whole sulking routine. >> i'm not completely exonerating cam, but i don't think it's that big a deal. >> all right. >> guys are hurt after a ball game, they're dejected, they're disappointed, they don't want to sit there and answer a million questions. i don't blame them. i walked off of press conferences as well. >> yes, you have. >> they didn't say next question to every one of them like i did. >> these ratings, 70 share. 73 shares nothing sneeze at, especially in this world of splintering viewership. do you buy any of this notion that somehow the nfl is peaking? that ratings are so good they can't get better than this? >> no. i mean, every year we hear the nfl's peaking, ratings are so high. this was a game where we had the league mvp in cam newton, a team that won 17 games with one loss versus peyton manning and perhaps most likely his last

game. it was the super bowl of super bowls. and a ratings bonanza. but next year it will be something else great. the nfl is all about superstars, stars. it's the number one sport by far. the ratings are not going anywhere. the nfl is not peaking. it's a per ppetual peak like th. >> spoken from a man whose livelihood depends on it. drew rosenhaus talking the super bowl. >> take care. straight ahead, back to the markets. the dow down 330 points. financials the worst performing sector so far this year. many of the big banks like morg morgan stanley down 6% this morning.

good morning, i'm sue herera, here is your cnbc news update. the obama administration is asking congress for more than $1.8 billion in emergency fighting to fight the zika virus. that would support mosquito control programs, vaccine research and health services for some low-income pregnant women. an 8-year-old girl pulled out of the rubble of an apartment building in southern taiwan more than 60 hours after it was toppled by a powerful earthquake. the official death toll has risen to 38 with more than 100 missing. the wall street journal reporting that the justice department is investigating a half billion dollars in healthcare fraud linked to specialty creams used to treat pain and other ailments.

they believe an insurance program for veteranses may have been the biggest victim. and chipolte restaurants across the u.s. are opening later than usual today as some 50,000 workers gather in movie theaters and hotel conference rooms to discuss the chain's recent food safety scares. the company says stores will open at about 3 p.m. local time after the typical lunch rush. that's the news update for you. back to you, simon. financials are under pressure again today. some of the big banks have opened down 4%, 5%, 6%. the worst performing sector so far this year. year to date morgan stanley, b of a and city have lost more than a quarter of market values. joining us on the phone is gerard cassidy from rbc capital markets. gerard, is the situation changing here? what happened over the weekend that we should be down so heavily again today? >> i would say that i think the continued concern about the fed not being able to raise short-term interest rates,

certainly the price of oil has influenced the world economy as we all know, with further price weakness i think that may have been part of the catalyst for the selloff this morning. >> so it would be more about what we might see with names in natural gas or energy than it would, for example, be about european banks where we see the insurance of those rising very dramatically, the cost much higher this morning on fears about what they're doing. it's domestically focused from what you're saying? >> i would say it's all intertwined and interlinked. as you point out, the credit default swaps for european banks has widened. also some global concerns about the types of oil having an impact on the high yield market. those were elevated over the weekend by international authorities. so i think a combination of all these factors continues to weigh on the banks. of course more so this morning. >> what is mesmerizing is these are big national, international

franchises that we see. these are not second line businesses. these are really the commanding heights of the economy. at what point do you dive in as a shareholder and say these are cheap? are they cheap in your view? >> they are inexpensive what we're seeing here in the united states i would suggest is similar to 2011, you might recall that was when the u.s. was concerned about doing a double dip, the u.s. treasuries were downgraded by s&p. bank stocks from valentines day to october 3rd were down 40%. in the month of july to august they dropped 25% and there was no recession. so the stocks are cheap, if you don't believe the u.s. is going into recession, which we do not there are opportunities to buy stocks. >> can you go into that a little more? which stock looks the cheapest to you? i'm looking at goldman sachs, the biggest weight on the down, down 4.5% again. >> correct. i think what you're seeing with

goldman sachs, morgan stanleys of the world and deutsche and others, the capital markets business has been under pressure. that remains the case. so, when you look at more traditional banks, banks like bank of america, jpmorgan are good names to own. you get the benefit should cap palm capital markets recover. >> these are big caveat in what you're saying. you're aware of it as we are, that's if we're not going into recession. i think i'm right in saying deutsche bank has gone to a 40% chance that we may have a recession. that's much more pessimistic than most people. but there is still that tail risk which is moving us at the moment. >> that's a good point. i know the federal reserve, when you look at their indices, they're still in the camp of it's less than 20% probability, the consumer is strong with employment numbers. the housing market is still strong. albeit industrial sector of the

u.s. economy is weak as is the energy sector. we saw this in the 1980s as well. the '80s were a strong economy. >> you know, even if we were going into recession these stocks are down by a quarter of their value. they lost 25%. normally, correct me if i'm wrong. if you went into recession you might expect to lose a third off the stock market. even if we are going into recession, we factored in presumably a large amount of the way we have to go, even in a worst case scenario. >> i would say that's partially true. what i would just remind us -- ourselves is that with bank stocks, when luke at what happened in the '08/'09 recession they dropped far more than a third. they dropped in some cases, 75%, 90%. i think investors remember that. the banking system is completely different than it was in 2007. it's extremely strong. the capital levels are the highest since 1930s. i think the market is not taking

chances and selling them off in case there is a recession. >> it's good to talk to you. thank you for sparing the time. gerard cassidy from rbc capital markets with the dow now recovering somewhat, down 283 points. we were down well over 300 a few moments ago. this is the week that janet yellen goes before congress, and therefore on wednesday and thursday is likely, we think, to be more dovish and that could lift stocks. "squawk on the street" will be right back. market. but at t. rowe price, we can help guide your investments through good times and bad. for over 75 years, our clients have relied on us to bring our best thinking to their investments so in a variety of market conditions... you can feel confident... ...in our experience. call a t. rowe price retirement specialist or your advisor ...to see how we can help make the most of your retirement savings. t. rowe price. invest with confidence.

well, it's a terrible day for energy. not just because oil, of course, has been down yet again. also specific reasons. let's start off with energy transfer. a company we've been following in a deal to acquire williams, one of the largest energy infrastructures on the planet would be done if this happens. williams saying they replaced their long-time cfo, jamie welch, communicator with investors, banks, wall street about the deal. it is a complex deal with a lot of different moving parts. we have gotten no further word other than simple fact that his replacement was not a result of fraud, and i can tell you not a result of health problems. mr. welch has not been responsive at this point in terms of returning calls. i will also tell you none of the

advisers to the company were aware of this. it does seem to be the work of kelsey warren, the man who runs energy transfer, owns 188 million shares of ete. he's under pressure. the key is the pressure being felt by the company as it moves along to complete this deal with williams that includes $8 a share in cash. whether or not it's going to be in any way able to restructure the deal as a result of the capital needs it has. not just the 6 billion that $8 a share will cost it, but the possibility that when it acquires williams, that wpz, one of the limited partnerships of williams will have another 3 billion due to banks because it will have been downgraded, which seems likely, and then the capex needs of the company. how do you come up with $16 billion is a question in this market. where what you're transporting, the price of which is coming

down. the key is simply the lack of communication around the departure of mr. welch who at this point appears to be still on the board. again, don't have a whole lot about this. t it is a tight contract, but we have to see what else mr. warren has planned here. chesapeake today is the biggest loser on reports that originated late on friday from detweiler and this morning from reuters saying that the firm has been in talks to hire kirkland and ellis to help advice it on restructuring. a large debt load at chesapeake, $500 million in maturities coming due in march for the company. some questions as to whether it will be in position to pay that. that's why the equity is getting she shellacked. there's a connection to ete and williams. chesapeake has a deal, it pays

wpz to transfor tport a lot of fuels at a fairly high rate if it files bankruptcy, there's question of whether it would continue to pay that rate or come down to market rates that would impact ebita. it gets complicated. all of it goes back to the fact that the underlying commodity, simon, is under a great deal of pressure. >> in the meantime, it is a rough morning at the new york stock exchange. the dow down 306 points. the financials are leading, but also consumer discretionary. news corp, cbs, under armour. let's get more from rick santelli. good morning. >> i would like to welcome my special guest, william archer, former congressman from the great state of texas. allowing me to call him bill. thanks for taking the time. >> you bet, rick.

great to be on your program. >> seems to me if we want to oversimplify what is wrong with the country we can. but it's easier to oversimplify this incredible economy like a golden goose. the more we try to pull the feathers off the goose, the more many say we're still the best there is, but we're a mere shadow of what we could be in part because of this deterioration, in part because congress writes a lot of legislation with a lot of blanks and leaves it to regulators, the fourth branch of government that work in as staff to fill in the blanks. is there any question that when you look at a johnson controls and a tyco with an irish address they're conforming to really problematic legislation that in its entirety is known as the corporate tax code and they make a viable decision to interact with it? that outcome is being controlled

by the likes of treasury secretary jack lew, did you it doesn't seem like anybody wants to fix what is wrong, which is the legislation. how do we get ourselves out of this spiral? you finish up, what should we do? >> what we should do, obviously, is simplify the tax code so that you don't have all these complicated areas that require filling in the blanks by the executive branch, by regulations. but you also need a president who is willing to use the congress more and to work with the congress more and not simply write his own rules and say i'm going to be, in effect, a dictator. unfortunately we have a president now who has been using executive orders in this way. and we do need a different approach coming out of the white house and we need a congress that is going to simplify the

code. in addition we need a tax code that will make this country the most desirable place for corporations to locate. and we had that in 1986. and over time we lost it. and today it's much preferable for a corporation to locate somewhere overseas where there are lower tax rates. >> bill, you know, in the final 40 seconds we have, even if the supreme court overturns all these executive orders, much of the damage has been done. we hear from janet yellen and her predecessor ben bernanke that they're doing these experiments with the economy because congress is not addressing the issue. whether that's right or not. in the final 30 seconds here, everything you said makes sense, but how is congress going to grab back the power it seems to have almost voluntarily since the crisis relinquished? >> well, the congress, of course, can be criticized

easily, when people are unhappy, they want to blame congress. it's very difficult when you try to put together a majority of people, particularly if you have a president who is fighting every inch of the way. so, i think the congress deserves some blame, but i think there's plenty of blame to go around. unfortunately the people themselves want something all the time for nothing. and put that pressure on the congress. i think it's very troubling to look at the future for this country when you got an electorate that is on the take. >> i agree. listen, bill, our time has ended there. i guess the definition of free should be modified in webster's dictionary. you get it today for free, and you pay for it taxes for many decades. bill archer, thank you. sara, back to you. >> rick santelli, thank you. up next, some people call it the best part of the super bowl,

me included. the commercials which had a big impact and which lost. the dow is down 283 points. the s&p 500 down 1.75%. keep an eye on the nasdaq, this means we are 18.3% off the last highs set in june, which means we could technically be looking at a bear market, down 20% off the high. not there yet but we'll keep an eye on that.

welcome back to "squawk on the street." the nasdaq etf ticker extending friday's selloff down 3% so far. the etf fell more than slightly that amount on friday, as well. now down over 25% this year. now some of the big names dragging down today, amgen, biogen and barrons calling out celgene over this past weekend, saying both stocks could jump 30% this year. barrons says a recent selloff in some biotech names has created a buying opportunity. doesn't seem to be helping shares today. down by 3%, a momentum sector certainly to keep an eye on. back over to you guys.

>> thank you, dom. 30 seconds of air time during the super bowl. which ads worked and which did not? with us to discuss it is james cooper, executive editor of ad week. and mike jackson, chief marketing officer at event solutions international. james, i'm going to start with you. on my favorite, which was not a crowd-pleaser. the puppy monkey baby. it was so random and so nutty that i thought it went viral and it worked. >> incredibly vishl and appealed to the young skewing millennial man, a huge part of the super bowl audience. ultimately, a win for mt. dew. >> owned by pepsi co. i don't know if it was a kickstart. i don't know if that was the goal. >> it definitely blew up on twitter, trending underneath the super bowl for most of the game. so -- i would say it was a pretty successful ad. >> let me ask about you. you used to be a marketing exec at pepsi and i don't think you enjoyed this one. why? >> well, i didn't. when you've got a new brand like

kickstart for mt. dew. i believe that you really want to try to communicate the equity of the product somehow amidst the humor. and i thought it got lost until the last placard at the end. what is it? what is kickstart and who is going to drink it? >> i think it's a good point. hyundai's first date, very high. did you like that one? >> you know, i did. it was funny. and i kind of looked back at all the ads, and it was really about celebrities, cars and comedy. and obviously, you hit two out of three with kevin hart and hyundai. i thought it was funny. i thought it was entertaining. kevin hart obviously is very well-liked and the whole notion of having that, you know, tool available to kind of track your vehicle, i thought it was an effective ad. >> james, was there a winner? >> i don't think there was a winner this year. it was pretty safe. in general, fairly vanilla. i would say if there was a

winner, it would probably be one of the jeep ads. they sort of really reached for that sentimental touchdown. and i think they scored with it. >> can i pick up the point you say about the creative being quite safe this year? that's -- the "new york times" this morning said everybody kept to the script. does that mimic the atmosphere in c suites do you think? the front page of the "journal" is talking about how sears in general are talking about layouts and capital expenditure. do the two go hand-in-hand? >> i think the $5 billion record price for a 30 puts pressure on. last year we saw nationwide experiment with an ad, the dead kid ad. it totally tanked and was gone within a year. >> so they won't take risks like they would have done in this environment? >> i don't think so, as much as they used to. there is so much pressure. and you also have social media amplifying the ads. and if you really strip your creative, you're going to get crashed on social media. >> mike, the final word. which do you think won, if any, and what constitutes a win?

>> you know, for me, it's about sustainability. can you sustain your message after the 150 million people view your ad. i really agree with james. i thought jeep had the very most effective ad. i mean, the positioning was very, very solid. and i think it's a foundation that they can build on. especially as they enter their 75th year. anniversary. >> all right. thank you, john. we didn't get to doritos ultrasound which i thought was good too. good discussion. james cooper of ad week and mike jackson of eventuality solutions international. let's check in with john for forttess and "squawk alley." >> the nasdaq doing worse. what's behind that? we will dig into it. also, twitter, are they making big changes or aren't they? jack has weighed in with a few things. we'll see what's next for that company. and the super bowl ads, of course, technology came into

play. even a couple tech-related companies had ads. we will check in on how those d. all that and more coming up on "squawk alley."

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8:00 a.m. at twitter headquarters in san francisco. 11:00 a.m. on wall street. and "squawk alley" is live. ♪ ♪ welcome to "squawk alley." for monday, joining us as always, john fortt, kayla tausche and myself. watching the selloff. ed lee joins us. good to have you this morning. >> thanks. >> markets had a difficult time from the get-go this morning. nasdaq down. s&p down to 1843, the lowest since january 20th. where if you recall, we had that intraday low of 1812. and they were