good morning. it is 8:00 a.m. at square headquarters in san francisco. it's 11:00 a.m. on wall street and "squawk alley" is live. bl welcome to "squawk alley" for a friday. nice to have a show again after a couple of days of janet yellin. jon fortt and kayla tausche at post nine. and kara fisher joining us from

san francisco. good morning to you. another ugly week despite some solid gains today. dow's up 175. the nasdaq is now down almost 14% for the year. rich wong of xcel telling "usa today" saying, i personally don't think the environment is anywhere as close to as difficult as 2008 or 2009 or 2001, but try telling that to people in tech, kara, especially given the losses in f.a.n.g. how is this playing out in your view, both from a sentiment standpoint and more practically? >> i think practically, people feel good about it, odd enough. in a lot of the places i'm going, a lot of the vcs are happy about it. a lot of people think there was too much money rushing in, especially from the hedge funds and the larger institutional shareholders that were shoving the prices up enormously. i've been hearing this for a while from a lot of prominent vcs, they couldn't have been compete. a little like san francisco real estate, it suddenly got crazy crazy, and then goes back to just normal crazy. so i think everyone feels like most of them are pretty logical,

what's happened. at the same time, there's going to be a lot of reverberations among the companies that can't raise anymore money. and that can be problematic. >> we've heard from a lot of these companies. the ceos for years have said, we don't really pay attention to a stock price on a day-to-day basis, we're focused on the long-term. and while that's true, i wonder if you've heard more ceos start talking about their stock price and valuations more specifically. >> they say that, right? that's the line, right? i don't think about winning the oscars. that's just crap, i'm sorry. they do think about it. obviously, it has repercussions on their employees, on being able to buy things. when you lose 40% of your wealth, you pay attention to that. or your alleged wealth. i think that's not true. it does have repercussions. and there are a lot of buying opportunities among some very good companies that aren't going to see more investing and it will split the wheat from the chaff, which has happened since silicon valley, almost continually. >> kara, is there a specific reason you think to believe that

this won't be as bad as 2001 or 2008? or is that wishful thinking? in other words, are people putting specific metrics behind why it might be different this time and go back to normal crazy and not drop down below that? >> yeah, i mean, i think that probably a lot of the companies are very substantiative and interesting. i mean, a lot of them have a lot of money they've gotten, you know? whatever -- uber may be lugosin money, but it's a really substantiative company and it's got a lot of cash and people are handing it over hand over fist, because they feel like the growth of companies like this and air b&b and others are an important shift. so i think you'll see the better ones who have the money saved doing just fine. i don't think there's as many, really, wacky ones. i don't know, jon, you were around, too. a lot of them are very interesting and the question is there's probably too many of them and they're at too high a valuation. >> i guess it's the 2008 comparison i don't know about. because 2008, 2009, a lot of those companies were real, too. they went public and they're getting beat up now.

linkedin comes to mind. >> yeah, linkedin, definitely. i just think a lot of these multiples got ahead of themselves. i mean, it's not to say they're not great companies and interesting companies, it's just what wall street was -- wall street was valuing them on growth, growth, growth, and a lot of these are just not going to grow to the sun the way they always think they do, and then they never do. but that's not to undercut the fact that they're good companies. >> we did just talk to spencer raskopf this morning about how you hire and retain with a lower stock price. his argument was, actually, it's better now for us than it is if you were going to work for a true start-up, where your series "a" funding is even now suspect. do you buy that? >> yeah, yeah, i guess people will run to safety. that's probably true. that people don't immediately say, hey, i'm going to do a start-up, i'm leaving google/microsoft/twitter/ whatever. i think that's probably accurate, to say. >> kara, this week we got the report, though, from "the new york times" that pandora may have considered selling itself.

and it makes you wonder, at these levels, whether we'll see a game of sharks and minnows. whether there will be companies who just decide, you know, our valuation has been found out. we need to go and sell to a bigger company. do you expect that to happen on a larger scale? >> yeah, i do. i mean, i've talked about it a lot. a lot of these companies, you're looking at yahoo! being looked at. i always say twitter probably should be sold. i think a lot of people are saying that now. you're going to see a lot of assets being moved around. it's a really -- it's an interesting time. and i think there's probably going to be more asset sales than usual. and people can't make a go of it. even if it's a very good company. so if you're a big company, you look around and see what you can tuck in, that would be great for the assets you have. so i see a lot of that is going to happen. and a lot of companies are going to consider it. lots of those pandora-sized companies, too. >> speaking of which, let's get to twitter. earnings, of course, disappointed this week, but the stock's in the green this

morning, kara. this is what adam bayne told us on "squawk on the street" yesterday, take a listen. >> we're focused on live, because we think live is actually a really powerful part of the platform. whether it's live video or live information, we think we've got a massive opportunity when it comes to live. and we've made a lot of changes. in fact, a change last night where we've turned on a way to bring the best of twitter to your timeline. >> all right, so, your talk on the degree to which they're tinkering with the product, the business model, takeover, have at it? >> uh, okay, live. live. also live. everything is live on the internet. you know, facebook is live. what is it, dead? adam's funny, he makes me laugh. i also like when he says, "i'm glad you asked that question." that was a good interview. but i think they're trying to tweak the product in realtime and rather publicly, which i find interesting. i think it still has, you know,

removing the dot before a name or changing around the thing to make it not as difficult as use are all sort of table stakes to me. and i think it's a bigger question of how do you get people to really engamg with the product. they have had a billion people coming through there and not everybody has stayed. and so, you know, we did a good piece, kurt wagner did, about how twitter is lonely to be at when you first get there. so they've got to do a better job. facebook is not lonely, because when you get there, you have your friends, and there's always a response. with twitter, that's not the case. they've got to make a product that, as live as it may be, it's got to feel lively and interesting and engaging to the customers. and that's hard. that's a difficult thing, unless you're a narcissistic journalist like myself, and then it's great. it's a great place to be. >> kara, the thing that confuses me about this live message is a couple of the major things they're doing feels not live. moments being one. yeah, all those pieces were live at one point, but now they're trying to piece them together into a narrative that's not live. also, this algorithmic tweak

they're doing. it's not all about things that are just happening now. so for them to be saying live, where some of the tweaks they're doing seem time-shifted seems weird. >> i think they're talking about realtime. if the super bowl is happening, everyone's talking about it with twitter. i think that's more what they're talking about with twitter. but i think the question is, is it relevant to you in realtime? or the debates last night or the debates coming up or stuff like that. or you engaging with it during live events. and there's always some event happening in the world, some news event. so i think they want to be the place where people jump to for instant news. i think that's what they're talking about. and at the same time, they've got to do those while you were out, and things like that, because it becomes relevant for people. because a reverse chronological timeline is not right for most people. it man for you and i, but not for most people. >> finally, kara, kayla's got some news on visa and square, which square is having an amazing day today.

>> that proposal overnight is propelling square shares. this is actually a disclosure of visa's envelope in square, from april 2011. so this is from almost five years ago, and this is because of the dual class share structure, once you pass a certain point, you have to disclose that you are converting from one class to another class, in order to sell. but visa is still subject into to the lockup. i understand this is not a stake by any stretch of the imagination and keep in mind that the deadline for disclosing these positions is tuesday, after the close. so we could still see more filings. and it would be wrong to make the judgment that these are new stakes in square. especially because jack dorsey, kara, as you know well, has said many times, how important being platform agnostic is to square. they can process visa, they can process mastercard, they can process apple. and i believe, kara, if we have

this sound bite from jack dorsey, from when we interviewed him in november around the ipo, take a listen to this. because we asked him this very question, if eventually it would make sense to be owned by mastercard or visa and here's what jack dorsey said to us then. >> you know, i can't speak for other companies, but i think we have a lot of power in our independence. as you said, like, we can really be a platform that is agnostic to devices and to networks. and i think that's really important, because and our sellers shouldn't have to care what comes across the counter. they shouldn't have to care how their buyers are paying. and buyers should be able to pay with whatever they want. it's really important to us to make sure they don't have to think about that at all. they can accept every form of payment, and that means they make every sell. >> having visa as a strategic investor is still beneficial for square, but do you agree that the market possibly misinterpreted this? >> i agree that reporters got it wrong this morning. i mean, i agree -- it was a stake they owned, according to jason del ray, who i just spoke to, and it just was disclosed.

and it's great to have them as a partner. i do think dorsey is still thinking about becoming independent, staying independent, excuse me, but, you know, it's not the craziest thing to think that visa might want to buy a company like square or mastercard might or american express might. but being a strategic partner, which they've been since the beginning, this is a stake they had before the ipo, i believe. but it's a stake they've had a long time, and all it is is a disclosure, and of course, you know, not great reporting made it seem as if it was something new and maybe everybody's wondering if there's going to be an acquisition. i don't think there's anything pending or happening right now, and it's not the craziest thing to happen about, but right now they happen to own a big stake, and that's that. >> between all of that we just covered, and pandora and netflix, which we didn't get to, we might have to have you on every day. i hope you don't mind. >> every day, i can't wait. i love getting up this early, it's so fun. >> kara swisher, have a great

weekend. coming up, a lot more on the markets rebounding. the dow is up 200 points. an exclusive with the ceo of qualcomm on concerns about enterprise tech and trouble in the cloud. another stock in that sector getting slammed on earnings, down 17% this morning. the ceo will join us a little bit later on. ♪ there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.

getting some interesting comments coming out of the q&a portion of dudley's appearance today. our steve liesman has been watching that. steve? >> carl, thanks very much. bill dudley making some important comments on this issue that's been debated of negative interest rates. he says negative interest rates should not be part of the conversation right now for the u.s. economy. he says there are many steps the fed would consider, and he is not spending a lot of time thinking about negative interest rates. that's important, because the fed would not be negative interest rates would consulting with the new york fed president. i'm talking about the effects on banks. he acknowledged the market volatility and the timing of financial conditions, but says he's still undecided if the economy is the cause of this or it's a sentiment issue, and he says they have time to figure this out. if tightening conditions last, it will be taken into account with more monetary policy. he says the u.s. economy has momentum and banks are

fundamentally in fine shape. probably going to take a little bit longer, he says, though, to get back to the fed's 2% inflation objective than they thought several months ago. so kayla, on these issues and these comments, the market was at the session highs, stock market at session highs and you could see oil bumped up. donate know if that's part of what was going on, but the market at session highs on these negative comments from negative interest rates from bill dudley. >> and with that, let's take a look at the markets. the dow is currently up 236 points, the s&p at 26, and as steve just said, we are at session highs. with us now is tony crescenzi with pimco. tony, there is so much to work with in the markets these days. how do you prioritize whether it's oil, whether it's global headlines, whether it's fed speak, that's going to move the market on a given day? >> it's all of the above. and it actually began a long time ago, in 2014, when markets started to think about the possibility of the federal reserve in 2015 would raise

interest rates. it caused the dollar to rally that, of course, had an impact on oil, as you just mentioned, oil, and had an impact on china, forcing it or compelling them to devalue their currency last august. and that also set in motion all the instability created by those things, actions by central banks, that steve just spoke to, about bill dudley, regarding negative interest rates. the implementation of negative interest rates. so they're all historic, they're related, and they intertwine. and all at the same time. so right now, we've got to let markets adjust to these things, the normalization of interest rates is something to adjust to. the integration of china to the global financial system is something to adjust to. negative interest rates, adjusting to the markets sending a loud and clear message to the fed, and thankfully, bill dudley is saying, well, we're not actively considering this right now, because it has had negative consequences for the global financial market. >> adjusting would be a nice way to put what we've seen in the markets this week. and we were largely spared of

china, because it was close. what happens when china oppose next week. we have a long weekend and come back tuesday morning. >> based on offshore trading, it looks like its currency will strengthen. it's been a source of stability, not because it's been closed, but the currency hasn't moved much. and there is an important meeting of the g-20, the group of 20 nations, on the 26th of this month, in shanghai. this will lead up to a meeting toward the end of the year, on september 6th, in china as well, a different city, the leader's meeting with xi jinping and president obama where all the leaders will get together. china will want to send out a sense of stability with its markets, which means they will have to do mopping up by the second quarter. because it takes time for markets to stabilize if they're unstable. so investors should be looking for signs of stability, signs of comforting words from the g-20 on the 26th of this month, and

for actions to be taken throughout the next several months to create more stable foundation for global financial conditions. >> at the expense of the reforms we've always heard about they had in mind? >> no, because china is still seeking better quality over quantity. and what's happened in china is really historic. one could say that it's a change in the monetary order. one we haven't seen since nixon took the u.s. off the gold standard in 1971. there are three periods, arguably. 1945 through 71, the britain system, it's a managed system, where investors knew pretty much where currencies would go. but since 71, it's been a free-floating free-for-all. arguably last year when china was included in the basket, it became more integrated in the global financial system. that's good in a way, because it reintroduces state-controlled back into the system. but it's very bad right now, because this element of state

control is different, because we don't know what this state, china, wants with respect to its currency, in terms of the speed of movement, the depth, and the direction. it will become clearer, and i'm sure the g-20 will make it clear to the chinese officials to communicate a little better and i'm sure chinese officials know that themselves. and we'll see improved communications over time. >> tony, based on what you see in the markets right now, what do you see as the likelihood th that low oil prices will cause this domino effect that people are really fearing and spread out into other areas. thus far in the s&p, we seem to be bouncing off that 1812 level. but it seems like, if this oil effect really goes somewhere, it could get a lot worse. >> well, it's very destructive to look at today's retail sales report in the united states, where the so-called control group, which is a portion of the report, which gets plugged into the quarterly gdp statistics had a 6/10 of a percent gain. it's a big gain and this is in

nominal terms. it looks like now, with those data, that personal spending will be up at about a 3% pace in the first quarter, pretty similar to the last six quarters, which was a sharp improvement from the six quarters prior to oil started to fall, when it was up 1.9%. so households are spending some of the windfall, not all. there is benefit, it's getting overlooked because of the exact on financial markets, but eventually that element will subside and the benefit of lower oil prices, which has been seen, will be looked at more -- >> nice. >> tony, we appreciate your time, as always. >> tony, executive vice president of pimco. and speaking of enterprise technology, an exclusive interview with the ceo of qualcomm which held its investor day, coming up a little bit later on "squawk alley." hey mac. ready to shave?

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investors today, as shares of analytics company qlik lowered today. a disappointment mirrored by their rival, tableau, a week ago. is this about tougher competition or tightening budgets in i.t.? joining us at post nine in an exclusive, the ceo of qlik, lamars. this has been an ongoing conversation, whether it was tableau or cisco, how much pressure are i.t. budgets under? and can you say it in layman's terms? >> i don't think we feel any pressure at all, in the united states or in western europe, where we see some weakness is in asia, but we did very, very well last year, grew our license growth from 15% to 20 to 21% in constant currency. so what you see in the stock market, we don't see in our customer dialogues. we're well positioned, launched a new product last year. so not resonating really with

us. >> even in the near-term, holding off on an update by a matter of weeks or months, something that's nonessential, nothing like that? >> not at all. not at all. i think you have to remind yourself. we're in a time and day where data is exploding around us. people want to drive more insights out of that data. they want to get to more decision makers, and that's just going to continue. >> i think a question, some investors might have is, is your cloud strategy going to grow fast enough to catch up with the times? also of people lump you guys in with cloud. you actually list cloud as a risk factor in your 10k, because you're a big data and analytics company first, transitioning to the cloud. what can you tell us about cloud growth and cloud plus and the uptick you've seen on that product thus far as you've started to roll it out? >> we rolled it out a few months ago with tens of thousands of users, using that free version of cloud. what i think you have to remind

yourself, in analytics, is that data gravity thing you've got to look at as well. where is data sitting? it's not likely you're going to be with analytics in the crowd, if your data is sitting on premise and vice versa. you've got to be in a hybrid mode. and i think we handle that very, very well. those who want to be in the cloud, we can well serve them. those who want to be on premise, we can well serve them as well. >> what remain the big risk factors for the rest of the year. if the pain is especially acute in asia, is this a forex story for the rest of the year? >> for us, it's a forex story all along. we translate so much back to u.s. dollars, so you have to view it on a constant currency basis. i think we can read through what's happening in asia during the year, it's hard to predict when. i think we can come out this year very strong, as we did last year, we reaccelerated revenue growth last year. >> we saw the dollar index hit a four-month low this week. how quickly can a company and

can qlik specifically reset to current levels knowing it can be volatile every single day? >> i think we can only do one thing, and that's what we do very well. serve our clients and continue to do that in a matter that is driving benefits to clients, and eventually that will be appreciated by the stock market assi as well. there's nothing else we can do. demand hasn't stopped, demand hasn't slowed down. there is more to do out there than there was yesterday. that's why it's hard for us to see how the stock market is receiving this right now. >> and in terms of base case assumptions for the year on forex, we've had tech companies come on and say, we don't know why we bother, because no one truly knows, but you must have a base case for the year? >> our simple base case is we took what it is right now when we said guidance, i would agree with these people, trying to predict that, then you would be a genius and i wouldn't be running this software company, i would be doing something else. the only thing you can do is sort of explain yourself, what does this mean on constant

currency. >> lars, good to see you, thanks for coming by. lars bjork of qlik. europe is going to close out the week with some green? >> yes, it is the sixth trading week of 2016 and there is green on the screen in europe, after so many days of such heavy losses. just for the record, we got the gdp data for the first quarter at an annualized rate for the eurozone growing 1.1% in the first quarter. that's kind of what we had in the third quarter, as jpmorgan points out, but it's way less than the first half of last year, which was around 1.9. and within that, you have greece going into recession, you have italy barely growing for the fourth quarter, but spain absolutely roaring ahead, and therein lies part of the problem of setting one currency or one monetary system for the entire eurozone. as far as the stock market moves, today is a day of short covering, and you see this particularly picked up with the banking sector in spain and in italy. but during the course of the session, it's the oil giants that have made the gains, as

brent trades above $32. and there, i guess you could say, is a lot of the weight of the market, bp, omv in austria, total in france, all surging ahead. and a real strong surge on the minors. picking up the short covering we had for a couple of weeks, then we went back down. now you see angelo absolutely ripping ahead. we had a report out from bernstein suggesting that actually rio should think about extending its exposure to copper and maybe buy anglo america. they had to put circuit breakers in there such was the move that they had. the other big area of movement was the banks, right from the oft today, when we discovered they were running down its bad bank ahead of schedule, commerce bank, up 18% so far today. and deutsche bank, of course, coming into the fray with a confirmation it's going to spend over $5 billion buying back some

of its own bonds and the cocoas have been the main concern there. goldman suggesting that this kind of show me the money tactic from both of these is an indication that there situation is not stressful, their funding is not stressful, and that's one of the reasons why the shorts have covered. this is a chart of where we traded on european equities. the stock 600 so far this year in europe, six weeks of trading, down 14%. the banks in europe are still down 24%. and i think this is just for the year. this is just for six weeks. and this is the week, really, that everybody started to take note of what negative yields mean for banks, and what the central banks, particularly at the ecb, extends those negative rates, on march the 10th, which the indication it's going to do, what that's actually doing to the banks in europe and around the rest of the world. this story has only begun, because people are getting very, very angry of what the central banks are now doing. guys, back to you? >> and we'll have more earnings from the uk banks and french banks over the next few weeks.

after this break, the co of qualcomm on how he sees the macro environment right now. it's been a rocky ride for that company's stock. and we'll have that story for you, up next.

good morning, everyone. i'm sue herrera. here is your cnbc news update this hour. demonstrators taking to the streets of munich to protest the participation of iranian foreign minister in the munich security

conference talks. the protesters chanted and waved banners, calling for zarif to be excluded from those talks. 15 more bodies were pulled out of the rubble of a collapsed apartment building in southern taiwan. it follows last weekend's powerful earthquake. the death toll now stands at 94, but that is expected to rise, as the search for more bodies continues. and pope francis departing rome this morning for his trip to cuba and mexico, where he will hold an historic meeting with the leader of the russian orthodox church. as you can see, the pope waving to the crowd. he carried his own briefcase, as he boarded his plane known as shepherd one. and actor george clooney and his wife, amal, meeting with german chancellor angela merkel in berlin to discuss the situation in syria, which has contributed to the surge of refugees coming to europe over the past year. you're up to date. that's the news update this hour. back down to the nyse and "squawk alley." jon? >> thank you, sue. and chipmaker qualcomm holding

its analyst meeting yesterday, introducing a flag ship new product, its first gigabit lte, i spoke to steve mollenkopf the other day and asked him about the global market right now. >> if you look at our business, it's driven by two things. one, it's driven in the core. we still see handset growth around the world and we're capitalizing on that. obviously, we're working hard on getting our china business restored and in a position where it can take advantage of that. but more importantly, we're seeing a number of industries that allow us to grow outside of the handset space, but using the same technology that's used in the handset space. and i think there's a great opportunity there. in fact, we talk about how our end markets for our chipset business actually double over the next five years, just due to that second phenomenon. >> what's the impact of the x-16 going to be the first gigabit class lte chip set out on the market? you're announcing that.

what's that going to do for your business this year? >> i think it's clear evidence that we're continuing to lead in the modem. we're providing fiber-like speeds on to the phone. and i think the opportunity for people to take advantage of that for new industries to take advantage of that, i think, are tremendous. so we have a lot of confidence in that modem business and the need for new modem features. and i think it's going to be very significant for our business down the road. >> tell me about the global demand environment. lots of concerns, not just about china, but about china's trading partners also. now, i know you don't speak for your customers, but you hear from them quite a bit, and have a really good sense of what the demand environment looks like. is there caution, more caution, even there was weeks ago, about what demand is going to look like, both from consumers and businesses, as we move through 2016? >> well, i think the thing to remember, in the handset

business, is that it is susceptible to macro pressures, but it's probably more influenced by technology migration. so if you look in china, in particular, it still doesn't have a large penetration of lte units. so we'll see strong demand, strong unit demand in china, even given the macro fears that people talk about. if you look at the numbers, for example, china mobile, the largest carrier in china is talking about, they delivered something like 220 million lte handset last year and their current targets are to have more than 300 million next year. that's pretty significant unit growth, and that's really what drives our business. >> so, are you saying that macro doesn't matter, or that the technology migration is a heavier influence than the macro is? >> for our business, technology migration tends to be something that could overtake or at least change the view of a market that

may be under macro pressure, that other industries or other people's businesses may be more affected by. we clearly are impacted by consumer sentiment, but consumer sentiment tends to be not as important in some of these markets as technology migration. if you look at the world, the world has something like less than 15% of the subscriber base is using lte. so there's tremendous growth left in technology migration, worldwide. and you see that in china. that's why we don't see quite as large of an impact in china as others are seeing, with a broader, more consumer-focused business or something that's related more to commodities or macro-sensitive products. >> now, you're also announcing a system on a chip for wearables, a platform for wearables. how is this going to position you in this market, and is it clear how much demand there is for wearables at this point? >> well, i think if you look at

the internet of things, and you look at health care, and you look at networking, and you look at automotive, they are all taking technologies that are coming from the smartphone. the phone, in addition to having a tremendous technology consumption, is now interacting with more devices, and we're putting sensor hubs into the chips and more importantly we're taking devices from the smartphone face and we're adapting it to new devices like wearables. and i think we're in the early days of wearables, but we're seeing a lot of people, new people, to cellular, come into the market, because of these type of products. i think you're going to start to see, in the watch market, something that looks more like a digital movement instead of an analog movement. and we have the products that enable that. and that was one of the examples of the products we're announcing at our analyst day. >> and quickly, are you comfortable with the way qualcomm is managing costs based on the cuts that you've already

announced, or is there more on the way? >> well, we've done tremendous restructuring in the company in the last year. i think we've taken, i think, quick action to get in front of and to react to changes in the market. we're on track, i think, in the last earnings call, we talked about how we actually increased the amount of costs that will come out of the business this year. but i feel like we're doing the right thing. the team's executing well. we're driving technology, as you've seen from our announcements, and i think we're headed in the right direction. >> and thanks to steven mollenkopf for joining us. coming up, take a look at oil, soaring right now, up better than 11%. we'll take a look at what's driving that. "squawk alley" will be right back.

coming up on the halftime show, jamie dimon is buying shares of his own bank. is that an all-clear sign now for the financials? we'll discuss whether the battered sector's about to turn. plus, did crude oil bottom this week? big rally today? now energy expert john kill da tells us whether it can keep going. and is biotech a bargain? one highly rated health care fund manager says yes. he's going to pick some stocks that he'd buy today, as well. carl, see you in about 15. >> sounds good. meantime, oil ripping higher, the best day since february of '09. jackie's at the nymex. >> about a 12% move, $3 on the day today, after we took out january lows yesterday and may 2003 lows, as well. pretty remarkable. i've got five reasons for it.

the first would be the technical side of the picture. and also, this is typical positioning before a holiday weekend. we've got monday off and nobody really wants to be short going into that. there's also still discussion about the uae headline yesterday, talking about an opec cut in production. of course, that's just conjecture until saudi arabia comes to the table. then you've got this dollar drop. oil really wasn't reacting to it this week, but a 3% move in the dollar certainly supportive of these prices. and equities are moving higher today. whether you think one is moving the other or vice versa, they're moving in lockstep and kind of feeding off of each other. finally, the question again, have we bottomed? a lot of people said we have hit those 26ish kind of lows we saw in jan and that would be it. now that it's happened, people are starting to have this conversation again. on the fundamental side, without seeing any cuts in production, overseas or here, it's hard to say this is the bottom. back to you. >> jackie, thank you very much, jackie deangelis. let's get to the cme group this morning and check in with rick

santelli and get the santelli exchan exchange. >> thanks, carl, you know, i don't think it's going to be a 7 in tens and i don't think it's going to be a 6 in stocks. of course, i'm referring to a recent streaks. as y it has been an amazing year for stocks. tens sb six down closes in a row. down if it's going to be seven on the ten-year. one of the reasons is just logistics. after being on trading floors for over three decades, closing in on four decades, what i find is, there's a lot of things that make trading unique. and in the day i did most of it, it was really people and access and you know, how much markets could handle, when they got swamped. there used to be times in the grain room where you wouldn't get your prices back for hours because they were busy. those days are long gone. much of the trade's machines,

the traders are done by machines. but, the logistics, even though they've changed are important. let's talk about something. as we see so much selling in 2016, and really, it's very shortsighted to stop there. because the reason they're selling in 2016 is because of all the issues that have been somewhat carpeted over from years past. so, federal reserve and central banks were definitely the catalyst. it is what it is. they're not responsible, but they certainly haven't helped matters, and in many ways, i think they've made them worse. but you have that, you have what's going on in commodities, what's going on in just finance structures. so really, the deleveraging and recalibration that i've talked about at great length is kind of 3-d. and i'll tell you why. because, what we see now is not only the federal reserve changing the dynamics of finance, some countries putting interest negative, throwing the banks into a tizzy.

they're still responding to portfolios that have commodity financing, you think china, the finance of all of that, all this rhymes, but it's still kind of distinct. think about fx, think about what simon and i talked about today, currencies that should be going lower, that are recalibrating higher, because of the leverage and the carry. non-performing loans, toxic assets in italian banks really didn't go anywhere, festering to the top. the reason i bring this up, there are a lot of different kinds of selling. i think this has been the big issue, but we don't talk about specs and machines enough. have you noticed you get these intraday extremes that really don't correlate with closes, whether it's in stocks, whether it's in the fixed income, because there's a lot of machines and they don't really like to take position. there's a lot of vanilla selling. but the liquidation that is going on seems to be unstoppable. it's got to run its course. i am giving you technical levels lately, there's a reason why. because we have so much indiscreet trading going on with

ill liquidity, it gets very difficult to calibrate. kayla, back to you. >> before we go to break, i want to show you a quick check of the markets. the dow is up 247 point, the dow and s&p having their best day for all of february and trying to break a five-day losing streak with their gains today. we will keep you posted, but we are in strong rally mode right now, up about 1.5% for the major averages. when we come back, it's been called a fit bit for your car. one start-up taking the internet of things to the highway. we'll be right back. there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.

welcome back. our next guest is turning cars into a connected car letting users track mileage, gas and other car health. the co-founder and ceo of automatic. good to see you. let's see. i want to ask about the progress of automatics since you began linking into other services including nest. what momentum have you seen and are people using the expanded services? >> absolutely. so automatic has seen fantastic momentum over two years since we started shipping the product an we launched our platform in an app store for the car about a year ago and which includes apps and many other applications and today automatic is available in

best buy and target and camazon and retail channels and millions of miles of driving data through the system and very strong growth. >> what have you learned from this data and how much of this do you think -- i mean, we are seeing a slowdown in smartphone sales. you guys sort of exemplify the post-smartphone 'ra and logitech with strong results. how much of this is about that? >> so, i don't think what we do is really related to the macro trends of when's happening with smartphones. you know, we are more about connecting the car and the automotive industry is one of the last big massive industries which has never been connected and that's finally happening and as one of the major industries of our times is coming online, automatic is playing an important part in helping that happen bringing the future into the present today. >> you know, a lot of people complain about why the car at

least the interface of the car not changed over time. really, markedly. that's what we're all waiting for still. i just wander how much blame you put at the feet of the big three for that. >> look, at the end of the day the carmakers are really good at making mechanical things. right? so it's not always been a strength to create software-driven sign, using experience driven experiences and that's changing. a lot of pressure on the carmakers to do that and every consumer has access to amazing smartphones and tablets and they have amazing connected experiences dae s day and look car and go why is it so outdated? that's a problem and cars have development cycles and but they're catching up an carmakers see that and a lot of activity and i think it's rapidly changing. >> what's the impact of lower gas prices? people just driving more?

>> absolutely. so i think, you know, last year was a record year in terms of car sales, 17.5 million cars sold in the u.s. and people are driving a lot more and might have had a temporary short-term impact and people are absolutely driving more. >> all right. thejo kote, great to see you. thank you for joining us. when we come back, has the housing market in the valley hit a peak? that story coming up. i think it landed last tuesday. one second it's there. then, woosh, it's gone. i swear i saw it swallow seven people. seven. i just wish one of those people could have been mrs. johnson. [dog bark] trust me, we're dealing with a higher intelligence here. ♪

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home prices in san francisco reached a new all-time last year. is the market cooling? josh lipton has that story. josh? >> reporter: well, kayla, talk to real estate agents here in san francisco and they'll say that clay mor at least for those high-end homes does seem to have quieted. >> here in san francisco the high end, we are seeing sort of a softening in the tone of buyers looking in the above $3.5

million range. they're still very active but they're much more picky i would say than they were a year and a half ago where there seem to be a fervor in the market police and everything was selling so quickly. >> now, mcadam put this home i'm standing in here on the market. five bedrooms, four full baths, $5.5 million. he says this home shouldn't have trouble selling because it does boast all those right finishing touches but some buyers he says do seem more cautious as tech stocks tank and valuations take a heat. another realtor pointed out q-2 last year, 18 homes sold for $6 million and up in san francisco in q-4 that number she says dropped by half. listen. we know home prices in san francisco have been on a tear and analysts at fitch say prices are now 10% above their prior peak in 2005.

more than 60% above their post-recession low and fitch says they're now 16% over valued based on underlying economic fundamentals. of course, there's a potential bright spot. if that cooling goes to other price points, then maybe a lot of bay area residents looking to buy will suddenly have another attractive entry point. back to you. >> certainly fits with what we're hearing. thank you, josh lipton. have a good, long weekend. let's get to the headquarters. scott wapner and "the half." >> all right. thanks so much. welcome. let's meet the starting lineup for today. jim with steven weiss and josh brown. our game plan looks like this. oil and opec. energy expert on whether to believe the hype or fade the rally. he's live on set with us today. buy the bio wreck. that's a head of health care says to do. he's live with the stocks to own am