welcome back to squawk on the street. i'm reporting from the nymex. the department of energy out with the weekly crude inventory report. that was delayed because of the holiday weekend we have this week. we saw a build here. i'm sorry. a build or a drop peter? it's a build of 2.1 million barrels. so coming out with a drop. hah was a surprise that sent them higher. 2.3 million barrels but this is a build. 2.1 million. we're seeing a reduction in a gain that we have and we're coming off of those levels.

a couple of questions that are important to dig into when you look at these numbers. the question of course what happened with u.s. production, just under that level last week. three weeks of declines in a row. we want to see if that continues. we did have the comments from the uae oil minister saying that oil prices are going to force production freezes. that's a jab at iran here. a couple of reasons that you could see support for these. back to you. >> thank you for that. it's 8:00 a.m. at apple headquaters. it's 11:00 a.m. on wall street and squawk alley is live. ♪

>> good thursday morning. welcome to squawk alley. and along with business insider ceo. it's good to have you back. and it's google ceo supporting inkripgs on a series of tweets. we build secure products to keep your information safe and we give law enforcement access today at a based on valid legal orders but that's wholly different than requiring companies to enable hacking of customer devices and data. >> this has been kicked around for 24 hours now. you're not with the tech community on this one. >> this is a very, very important precedent. and it's great that we're having a national debate about it. the other troubling precedent here, now given the encryption on all the phones and devices, effectively anybody can

communicate in secret all the time, do everything and law enforcement will have no way at getting at that information and as a listen to the arguments coming out of silicon valley everybody wants to protect privacy that's great but we want a society with powerful law enforcement where you can do things with wiretaps and car drive seizures and subpoenaing important information with court orders which by the way all these companies are providing without argument except in this new case where it come do you understand to unlocking a single dead masked murderers phone. it's a very complex issue but it's very important. if silicon valley wins this one. law enforcement is going to be severely weakened as is national security. >> do you think there's a chance that apple wins this though? despite the fact that a judge has now made this order and is coming from the fbi. the director of which is the

former deputy general and the southern district you would think that the fbi would not push for something that it didn't think or believe was legal. >> you would also think that a great american company would follow the law. they're choosing to fight it in this case. all they can say is you are the most powerful and richest company in the world. if anybody can take on the fbi and the law here and tie it up for many years or ultimately win it is apple. >> makes samsung look like childs play. >> it's a very important fight. we have been hearing so much about the privacy side. >> folks have to understand the law enforcement side. we've had centuries of when you get a court order you can go in and do things like tap phones and so forth. >> you draw the parallel to wiretaps. that's the point in a sense is that given existing technology or tools or information yes.

we turn it over. asking us to create something or modify something, when does that end. next time around what can they ask a technology company to actively do. >> getting to the details very quickly, hard to sort it out you can imagine a system that you have to be able to open somebody's phone. >> the stuff is not encrypted. you can see it when the phone is running and that's what the fbi is asking or just to open the phone so we can see what the messages are. that's it. >> it's still remarkable to me that the support of tim cook is still hedged. he uses words like could and probably and and there's no full throated response to silicon valley from a unified group of ceos and companies saying here's what we think should happen. it's more we're not comfortable with what the government is asking and i think it's not good if you're in apple's position and it's a court order asking you to open up something to create software that, in fact,

hacks yourself. it's something that is so secure. >> apple is presenting it as something totally new. we just created the soft mary that's totally new. >> also by the way says couldn't agree more with everything apple said in their customer letter today. there's a spectrum of opinion out of the valley. that was more full throated and not the ceo of a public company owned by facebook. the further you get east, the more practical and more real world things get when it comes to national security. this was a bad position for apple to be in because this is a terrorist. there's information on the phone. they have to figure this out.

they can win in maybe the specific case but i don't know if society is. >> we'll revisit this later on. on a proposal to swap their cable boxes for cheaper devices and apps to boost competition. it would let people get video services from apple or google for cable and satellite providers. there would be a period of public comment. why are you looking at me like that. >> the last issue is complicated and you can have passionate views on both sides and there's logic. this one is black and white. it is a no brainer. of course you should be allowed to put your own box on. >> they have this one totally right. of course the cable industry is coming to say we want to maintain our choke hold on all the money and profit and we want to do everything we can to lobby and protect our money and greed and all of that stuff. >> who do you call for help when it's not working. >> call the person that made the box. that's fine. we deal with that every day.

>> with your router for your internet connection. of course we're owned by comcast. it's the one company that i own stock in is comcast but what's right for the consumer to open this up. >> it is so much better for the consumer. >> it's that simple. you get innovation. you know how much better that is than the old cable boxes. imagine if that were more competition and more ideas flowing through. >> should innovation be mandatory? playing devil's advocate here? >> yes. consumer choice. who would adisagree with that? >> all the money they plowed into the box as we know it today, just wasted? >> wasted billions of dollars of years, cash flow. things don't necessarily have to last forever just because you start a business. this is good for consumers.

it's black and white. >> comcast box that i use at home is good. it got me to ditch the tivo box that i talked about on the program but i would ditch the x-1 if somebody else comes out with something better. i want that to happen. >> it can be software and apple can have it so your cable box is on everything. it's super easy. where ever you are you watch. so forth. it's great for consumers. no argument here. >> by the way, a lot more on this story still to come tomorrow. we'll talk with fcc commissioner about this issue and a lot of the other things facing the fcc. another shake up at yahoo!. the company says it's phasing out 7 digital magazines as the company set to lay off 15% of its staff. as marissa meyer is set to speak in a little under 2 hours from now. josh is there with more. good morning, josh. >> good morning, carl. so listen we know marissa meyer dedicated time and resources to building out this portfolio of

digital magazines but now she has taken it to that division so yahoo! food, health, makers, parenting, travel, autos and real estate they will all be shutdown and more high profile exits including bobby brown that is the editor and chief of yahoo! beauty and yahoo!'s top tech editor, yahoo! will now focus on news, sports, finance and life style and it's going to be up to martha nelson that runs yahoo!'s media organization to make this slim down business work. why these changes? well, financial analysts say they look to be trying to streamline costs and make yahoo! a more attractive acquisition target and that's true in the face of renewed activist investors reportedly taking at least initial steps to a proxy fight and this all coming as user me tricks are showing real weakness. the information citing

confidential data says the number of people visiting yahoo!'s three most important products. so that's mail, the homepage search on a daily basis has really declined meaningfully over the past year. the homepage for example and the first period 2015. time is now really of the essence if yahoo! was going to find a buyer. marissa is going to take the stage here in a couple of it. we're going to find out if she addresses any of the recent changes. >> thank you. what does it mean when you close so many like they're doing? >> stepping back it is good to experiment when an experiment isn't working you have to move on. so you can say they tried some things that didn't work and they're focussing on what's working. that's smart. you should do that and a lot of people in the digital industry when they launch magazines.

not a digital concept. not a physical world so folks aren't surprised by this but the idea that they're trying things and of course correcting and going forward is good. >> but you launched a tech vertical in essence while they're shutting one down. do you think this is about pr programattic advertising and now you don't have to do that. and why is it going to them. >> two big challenges. it's direct big premium deals to programatic and their business is changing and they're losing a lot of revenues even though they're captioning programatic and now you can audience target effectively so still now and for many, many years to come, clients, advertisers.

and they care that it's premium and not junk that they're going to be embarrassed by and so forth and now subject matter and i think the product here is too small. real niche. very, very small. and very, very large tech sites. you can reach a much larger audience that way. >> they're doubling down on streaming and i'm wondering when you look at these changes is it too early to make the call whether they're slimming down for the long-term or dressing up for sale? >> i think they -- given the interest in the company and given the pressure they have to be thinking about at least taking these offers seriously. and yahoo! still is a very valuable platform. it's a billion uniques every month. still can generate a lot of cash. and cuts in cost. and they have to consider that. >> natural buyers in your view.

urging very smart the more leverage they have. the way the digital world is evolving now it is google and facebook and other. and everybody else is in that other category. and hopefully if you want to keep pressure on google and facebook but right now it's google facebook and other. >> we covered a lot of ground. as always. thanks a lot. quick news alert for you. phil is in chicago with that this morning. >> the dot is out with it's report on airline service not only for december but for all of 2015 and for all of last year. here were the top five airlines in terms of on time arrivals. we get this question all the time. and followed by alaska air. delta airline was the third on

time airline last year. who were the worst? the worst, frontier, right behind envoy. and there you have jet blue. jet blue being the third worst. by the way, 79.9% of the flights were on time here in the united states. good news and bad news for passengers. a lower percentage of mishandled bags and lower percentage bumped from overbooked flights. bad news people are not as happy when they're flying. there is an increase in the number of complaints filed by passengers with the dot last year. guys back to you. >> thanks so much. let's get a quick check on the markets. we're back in negative territory after the crude build we got at the top of the hour. take a look at the dow down by a fraction of 1%. s&p 50 down by 7 points. nasdaq down by 30 but there's two dow stocks moving in opposite directions.

shares of walmart and fourth quarter estimates. revenue forecasts for the rest of fiscal 17 which they are now in and you can see that stock is down more than 4% but shares of ibm are rallying after getting upgraded at morgan stanley. they're rallying 5.5% after the firm says there's considerable upside for ibm with the company building confidence in return to revenue growth. that would be a long time coming. ibm's watson unit announcing a health care analytics firm for $2.6 billion. >> plenty more on apple's fight against the federal government. a former executive at apple will join us with his take plus the head of espn leaving the door open at the mobile conference. we'll take you there live and shares of marriott are down after revenue misses estimates. the ceo will join us in a cnbc exclusive in just a few minutes.

back to apple's high stakes fight against the fbi and court order to unlock a phone used by the san bernardino gunmen. they're arguing it could set a dangerous industry wide precedent. when does customer and data privacy trump safety? joining us is tech veteran and former vice president at apple. now president and ceo at 3-vr. thank you for joining us, al. >> hi, how are you doing? >> do you see this the way that

tim cook does? and what do you think is the best solution here? >> i read tim's letter and tim is a very smart guy and i absolutely believe every word he put in that letter and agree with a lot of it. i think though it's really questions we're being posed with and there's a short-term question. what do we do about san bernardino and the larger question is what do we do about the devices in general going into the future? there is a solution to the short-term but it starts opening up the pandora's box that tim is concerned about. >> do you think that the solution for the short-term is have apple open up this phone, not give the code to the feds but now every country for various reasons is going to be handing phones to apple saying can you open this for me? >> they might. let me give you an example. if you read his letter carefully i was intrigued about not only what was said but what wasn't said. he was very explicit about we

don't have that code available today. however he didn't say we couldn't build it. i suspect they could build a code. so if you need to let code be built let apple own it. put it in a clean room somewhere and if a court federal judge orders an apple device to be opened have the fed show up and go in the room and do it and make that the littleation. now the slippery slope now that technology would exist and, you know, how do you stop people from asking for it? that's where the slippery slope begins and i'm sure that's their concern. >> is there anyway that the company can guarentee that this would only be a one off situation? . there's been a lot of arguments that this is a very old 5c model

and they could write a code for an old device that excludes the newer devices. it sounds simple in theory but we're not the experts here. is that possible? >> these guys are smart and i expect they could. the only way that i can see that apple would ever get comfortable doing something like that is they have to own that and make sure that it never leaves the walls of their headquaters. >> we talk about the company. i wonder what do you think the level of debate is within the company on this one?

and this is a time. it's not the first time that technology and privacy have come and created problems. this has been going on since the 1400s. the difference today though is there's a huge safety factor behind it so there's the potential that lives will get cost on the other end of that decision. >> it seems like eventually this gets to the question of should consumer devices be inherently compromised when it comes to security or should the manufacturer hold a master key. tim cook saying absolutely not. privacy is paramount and the government wants there to be cases in which they can get access to information no matter what. i don't know how they legislate that given that third parties

overseas can create encrypted software. is that what this is really about? >> yeah. and quite frankly it's going to be carried on to society for sometime. i'll be blunt. when the idea of a threat seems abstract and not very likely we're all going to be thinking that privacy is most important. but should another event or something like a 9/11 or worse happens i think society will move the other way. look at london. they had the bombing back in the early 90s and they rolled out video surveillance and became one of the most surveilled cities in the world. that's when the public said we're willing to deal with that if we want to be safe. unfortuna unfortunately we may have to endure one of those events before we make that decision. >> thanks for joining us. >> thanks for having me guys. appreciate it.

>> up next, interesting comments on streaming from the head of espn at this year's code of mobile conference. we'll go there live for details when we come back.

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>> welcome back. at re/code's code media conference the question is how companies are adapting to the landscape. an important question for espn. julia has the details. >> that's right. espn's president says he's in talks with a range of new potential partners including the likes of apple and amazon to include espn in their new bundles that could be in the works. in the meantime he's already working on direct to consumer options. >> we are certainly interested in pursuing our opportunities

and have already. we sold the world cup of cricket last year over the top. 100,000 subscriptions at $100 a piece. we know we know how to do it. we'll continue to look for other opportunities for content that does not exist on our current networks to put over the top. >> with skipper fielding questions about espn's future television business, a digital media mogul shane smith was on stage here last night and asked to explain why he is going into that same traditional tv business as vice launched a new network called vice land. >> scale is going to come from mobile. everybody knows that. we know that. we're not stupid. mobile is a big thing. we're making a lot of mobile deals. money will come from tv because it's not a secret like mobile much like online was back in the day. a lot of scale. not a lot of cash. 75% of the world's advertising

budget is still in tv. >> there's jane smith and john skipper are approaching this digital transition from totally opposite perspectives. they are in total agreement that they have to give consumers access to their consent on all platforms. >> julia, thank you so much. >> we rose to a two week high in europe but you can see there's been selling into that. it is importantly now crunch time in brussels and the meeting the e reading summit is about to stop. and the possibility of sovereignty within the u.k. and having done that deal tomorrow morning from breakfast he has to sell it across the u.k. the u.k. may vote to leave the european union at its referendum that's tabled for the summer. for the moment the commission

president is saying he's quite confident they'll strike a deal tonight it's down about 8% as you can see from this chart. it's interesting. there's still a 40% chance that britain will vote to leave the european union this summer and others like city. meantime we will obviously update you on that and meantime the ecb minutes have been published at the january meeting. it's clear that there's a very strong support to reconsider qe and the other measures, negative interest rates on march 10th and they believe that the equity market sell off in europe is due to misconceptions on their supervisory activity and the degree to which it will lead to bank provisioning and capital requirements. whether they're going to address that much will be very interesting. during the course of today's

session the italian banks from nowhere started slipping again and then the spanish as well. it's interesting that the ceo is here in new york today. he is meeting with u.s. investors and the main message seems to be that the problems that they're experiencing has to do with a fear and economic activity and take a listen. >> an introduction in profit so they're taking some benefits and it's fundamental so the market is still recovering. >> the ceo of intesa. back to you. >> shares of marriott are down after revenue misses estimates. simon is going to come back with the ceo of marriott in a cnbc exclusive in just a moment. was engineered...

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>> here's your cnbc news update at this hour. a syrian national with links to the syrian kurdish malitia carried out tuesday's bombing and he vowed retaliation. surveillance video shows the moment when the explosion occurred. european leaders began arriving in brussels ahead of a summit to

discuss the future of britain's membership in the european union. the french president says it's necessary to reach an accord with britain but no country should have a right of veto. pope francis departed mexico last night after a five day trip that took him all over the country. he ended his trip in the northern born city where lemented the plight of seeking a better life. oprah will auction items on ebay. it's everything from dresses and coats to jewelry and shoes and the bidding will start at 99 cents. all proceeds will go to oprah's leadership academy for girls. let's get back to squawk alley. >> thank you, the ceo of marriott about to pay $12 billion to take over rival hotel giant starwood is out with 14th quarter earnings. >> marriott ceo didn't get the growth he expected in revenue

from its rooms across the country on the quarter so actually fell quite short and he's cutting the guidance by 100 basis points. he joins us now exclusively from there bethesda headquaters in maryland. welcome back to the network. nice to see you again. >> thanks, simon. good to see you too. >> the story of last year it goes without saying was this concern that there was a slow down in the industry. your stock hasn't done as bad as your rival which is is still down about 30%. are we beginning to see that slow down coming through now? >> i don't think so. one of the things we talked about this morning is there does appear to be a disconnect between the market's expectation and what we're seeing in our business. we're seeing a little bit slower same sales base but not dramatically different than the last few years but when combined with anxiety in the marketplace it causes people to fear things

to be worse than they really are. >> you're going to buy back or return another $2 billion this year. that's more than 10% of the market cap at $17 billion. at what point would you not buy back your stock as planned? >> well, we're not a capital intensive business and we produce a lot of cash. our philosophy is the cash that we don't need to invest in our business and if there are good deals to do, we'll do them. we do want to invest in our business. we found year after year that there's not enough of that and it belongs to our shareholders. we have done that steadily. we talked this morning about during the term of the last cfo

just retired and purchased 150 million shares of our stock. that's a big chunk so it is part of our financial model and it works great and we love it. >> if there is a point at which let's say for the sake of argument the markets fall is there a point that you say why should i be buying my stock now if along with all stocks it's going to be cheaper in six months time? >> well, of course you never know that for certainty and i think that in many respects that's up to the markets participants to decide. i'd love to see us buy back more stock today because it's significantly undervalued. we're in the process of going through the merger with starwood. our proxys are going out to our shareholders as we speak and until that vote occurs on march 28th we'll be out of the market under sec rules but we would be very eager to get back into the market particularly at values

like this one which we think are compelling. >> interesting. obviously the big news is that the acquisition 12 beside. where are you on the cutting edge of what you're going to do when you finally get your hands on that business? the immediate question is how many of the brands survive? where are you going to ship people to. what happens say you close in the middle of the year. and getting the transition. and it's completed now. we have to make sure that we get through the competition authorities and various markets in the world. in the meantime what we're really doing is planning for each of the steps that we can take. we're extraordinarily excited. the brands are one thing. having 30 brands having 1.1 million rooms would give our customers more choices to choose that's a very positive thing and

i wouldn't expect we would get rid of many of the brands. the other thing exciting for us is this notion of taking the two leading loyalty programs in the industry. spg on the starwoodside and marriott rewards and creating something that is even more powerful for our customers. giving them the ability to say why would i care about a card with anybody else. this company would have every place i want to go on vacation or business travel or family travel and that's the work we have to make sure that we get right. >> for many people watching that's the most important thing. for high network individuals or business people that travelled for 20 or 30 years they're very senior members of the program. can you give them any more information. what would happen further down the line. that's what people are most interested in probably. >> that's right. we heard from spg members loud and clear. please tell us that we're going to be okay and i'll tell you, you're going to be okay. one of the reasons we're drawn to this deal is really the power

of this program and the power of the intense loyalty hah spg members have in that program. >> you can't do it by taking stuff away from them and instead that's it. >> the ceo of marriott joining us from headquaters. >> thank you very much. we're getting breaking news. the fcc moments ago voted to adopt that proposal which will let people swap their cable boxes for cheaper devices and apps to boost competition. the action will let people get video services from companies like apple and google instead of cable and satellite providers. coming up tomorrow we'll talk exclusively with the fcc commissioner on where the commission goes from here. >> that's a big move, carl. up next, yesterday was private label clothing. today uber style on demand. more on the latest venture amazon is reportedly eyeing. we're back in just a moment.

coming up on the halftime show stocks fighting to make it four days in a row. it's the longest streak since october. can the rally last. we'll debate that. plus why many hedge funds are suffering this year one manager is up 16%. he's with us live to talk about that strategy that's taking him to those returns and the fight over your privacy continues. should the show down between apple and the government head to the supreme court? will it? we'll find out. we'll talk to you in about 15.

>> sounds good. thanks. let's get over to the cme group. hey, rick. >> hi, carl. you know, everybody that i rubbed shoulders with, pretty much everybody i talked to in one form or the other they're involved in the markets whether it's through retirement savings/ira's day traders, position traders, programmers for hft organizations. everybody is talking markets and always trying to get ahead of the competition and we try to give you the ammunition to get ahead of the competition. some of it can get complex. technical analysis in the day of computers really gives you many more dimensions but it also gives you so many tools. sometimes people's tool boxes are so overwhelmed by all the possibilities and it almost gets confusing but sometimes there's patterns and if they work, they're pretty easy to follow

this piece is called filling and chilling because let's look at the most common denominator of what makes yields move lately. it's the relative value trade meaning europe and the u.s. are tetherred at the hips in terms of how ten year rates move. now here's a 10 year boom chart and this is what yields are going to look like but the reason it's so significant is is because of the move that we had that went to historic low yields '07 was the low yield closed. the next bottom of significance was 16 basis points. now let's go to this side of the chart so far. we have seen pretty much a dip but what's fascinating is the bottoms are some what lined up but here's the key, you know how thin this trade is? and it's thin the same way but defined by the same parameters. many times you go back in and

you fill these areas that were thinly traded so take your fundamentals and of course that becomes another mode bought what you want to do is you want to find a variety of tools that all come to the same type of trading conclusions, give you the same ranges. give you the same support and resistance and maybe you'll have three, four, five indicators and when you get three out of five or four out of five going in the same direction it's simple. we'll stay in a zone because of the relative value trade and they're going to try to stay in the high teens and i think 48 to 50 basis points is where all the big congestion was that will be defined as the upper bounds. so keep it simple. we're filling in and we're chilling in this range and if that happens here i find it very difficult to think that our ten year is going to do anything much different based on the spread. back to you. >> all right. thanks so much.

up next, the largest online movie ticket seller is growing. fandango buying rotten tomatoes. the ceo is going to explain the move when we come right back. the kitchen...that's home. i know that's like my grandma cooked, my mom cooked... ...i cook. chocolate bread pudding, and soufflés, and... ...banana bread. i make a lot of banana bread because the baby likes bananas. so, we always have bananas in the house. (laughs)

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subsidiary of nbc universal is buying popular movie review rotten tomatoes and flixster

which will continue to hold a stake in the combined company. joining us now fandango president. paul congratulations on the deal and thanks for joining us on squawk alley. >> thank you. good morning. >> it makes a lot of fensense. flixster is a social movie discovery site and rotten tomatoes is a popular review site for movies. >> what's our goal. that's all about discovery. making great movie decisions and then ultimately getting access to a movie whether that's going to a theater or seeing a movie at your home. we thought this was a great -- go ahead. >> no, you continue. >> we thought this was a great opportunity to bring together amazing complimentary plans. and rotten tomatoes was the most

trusted source online and and it's the leader online. and it's the discovery. this really just rounds out a total portfolio for fans. >> is the ultimate goal though paul to sell more tickets on fandango or is it to sell other types of revenue streams on rotten tomatoes on flixster, on other sites? >> the ultimate goal is serving movie fans. so first and foremost people want to find movies at different times. they want to discover strong fan driven movies. they want good advice and then they want to get to movies so certainly we want to serve movie fans with information. with advice and content and of course we want to sell movie tickets and we want to bring movies to people's homes. >> paul, what is the core value that you're able to provide

better by combining these things? my understanding is they're still going to live as separate brands. is it the data that you'll have on exactly what people are interested in and therefore be able to target specific content to them and maybe serve some of your customers in that way. tell us about the core value. >> it's one of the leading mobile destinations for discovery but hasn't had a large play into selling movie tickets. there's been a little bit of experimentation in it last year and there's a lot of demand. consumers want access to buying movie tickets so the ability to combine fandango's e-commerce platform is fantastic. conversely we know people want great advice and rotten tomatoes is the leading, leading brand in providing trusted advice. we want to bring that into the buying experience.

this is about connecting information and quality advice with best in class commerce. >> they love the site and the accuracy that they feel that the ratings provide and they compare it to fandango which some ratings have shown might be overly rosey. how will you reserve the integrity of these companies and the user bases that love them so much? >> right. well, first of all i too am a huge fan of rotten tomatoes and we think that it's important that it remains independent from an editorial standpoint. i think of it like a news bureau in a media company that you're familiar with. so it's very important and we'll continue to maintain it as a separate brand with independence. and we'll app don't the rotten tomato meter and the ratings and reviews across a whole network. >> any comment before we go on

the price tag for the deal? is it material? >> can't comment on the price tag but can certainly say the deal signed were about 30 to 45 days from closing. we're thrilled that warner brothers will be part of the future going forward. >> thank you. >> when we come back, amazon quitely making a big move into on demand. we'll explain that in just a moment. and to help you accelerate, we've created a new company... one totally focused on what's next for your business. the true partnership where people,technology and ideas push everyone forward. accelerating innovation. accelerating transformation. accelerating next. hewlett packard enterprise.

well, is amazon building it's own uber-like network of car drivers? reuters is reporting that amazon expanding how it gets packages to customers by an on demand delivery service. it's expected the drivers will handle standard packages and possibly help amazon contain growing shipping costs. an amazon spokesperson did comment on the story saying we continue to explore new ways to provide customers with faster service and delivery partners with more opportunities to earn great money working when and how they want. of course we know that costs of moving stuff around is a big part of the last quarter, that's for sure. >> and something they're

definitely doing. amazon flex the name is out there. started in seattle. now they're expanding it and if you were a delivery company like a ups or fed ex it has to concern you. >> that's right. >> markets almost exactly flat. we'll see if that holds up after a nice three days. let's get back to headquaters and the half. >> all right guys. welcome to the halftime show. thanks so much. let's meet your starting line-up for today. joe is here along with steve and john and pete. our game plan looks like this. he's killing it. the hedge fund manager already up 16% this year. he is with us live today to talk markets. his strategy and whether the bull is still alive. apple versus the fbi. the very latest in the high profile battle over privacy and personal security. amon joins us from d.c. with the legal angle. we begin with the markets though. stocks coming off the best run since the summer.